Navios Maritime Acquisition Corporation (“Navios Acquisition”)
(NYSE: NNA), an owner and operator of tanker vessels, reported its
financial results today for the second quarter and six months ended
June 30, 2020.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios
Acquisition stated, “I am pleased with our results for the second
quarter of 2020. During the quarter, Navios Acquisition
recorded revenue of $112.2 million, adjusted EBITDA of $72.7
million and adjusted net income of $32.4 million, or
$2.03 per share. Our chartering strategy focuses on capturing
upside and we earned $20.7 million in profit sharing in the second
quarter of 2020. We also declared a quarterly
distribution of $0.30 cents per share for the second quarter.”
Angeliki Frangou continued, “During the quarter, we expanded our
VLCC fleet by bareboat chartering-in one vessel. We now
have bareboat chartered-in four newbuild vessels with in no
initial capital outlay. We also successfully liquidated
our investment vehicle, Navios Europe II and converted $37.7
million into steel value and cash.
For the second half of 2020, we have 74.0% of
our available days fixed (22.1% with profit sharing) at an
average charter rate of $19,622 per day estimated to generate
$116.2 million of revenue. This contracted rate excludes
potential profit sharing. Navios Acquisition has 48.1% of
available days with market exposure and a breakeven rate of $14,775
per open /floating day. “
HIGHLIGHTS — RECENT DEVELOPMENTS
Quarterly dividend: $0.30 per share
On July 28, 2020, the Board of Directors declared a
quarterly cash dividend in respect of the second quarter of 2020 of
$0.30 per share of common stock, which will be paid on
October 8, 2020 to stockholders of record as of
September 4, 2020. The declaration and payment of any further
dividends remain subject to the discretion of the Board of
Directors and will depend on, among other things, Navios
Acquisition’s cash requirements as measured by market opportunities
and restrictions under its credit agreements and other debt
obligations and such other factors as the Board of Directors may
deem advisable.
Debt developements
In June 2020, Navios Acquisition entered into a loan agreement
with a commercial bank of $20.8 million in order to refinance the
outstanding balance on the existing facility of two product
tankers. The facility is repayable in 16 quarterly installments of
$0.8 million each with a final balloon payment of $8.0 million
repayable on the last repayment date. The facility matures in June
2024 and bears interest at LIBOR plus 300 bps per annum.
In June 2020, Navios Acquisition entered into sale and leaseback
agreements with unrelated third parties for $72.1 million in order
to refinance the outstanding balance on the existing facilities of
four product tankers. The agreements will be repaid through periods
ranging from four to seven years in consecutive quarterly
installments of up to $1.8 million each, with a repurchase
obligation of up to $27.0 million in total. The sale and leaseback
arrangement bears interest at LIBOR plus a margin ranging from 390
bps to 410 bps per annum, depending on the vessel financed.
During the second quarter of 2020, Navios Acquisition prepaid a
total of $76.3 million of its existing bank financings.
In the third quarter 2020, Navios Acquisition repurchased $5.0
million of its ship mortgage notes for a cost of $2.9 million.
Liquidation of Navios Europe II Inc.
On June 29, 2020, following the liquidation of Navios
Europe II, Navios Acquisition was allocated $8.9 million
in cash and seven containerships with their associated working
capital. The vessels are accounted for as held for sale. Navios
Acquisition drew $41.7 million under a new short term credit
facility secured with the seven containerships and repaid $45.1
million of the vessel’s indebtedness.
Continuous Offering Program
On November 29, 2019, Navios Acquisition entered into a
Continuous Offering Program Sales Agreement, pursuant to which
Navios Acquisition may issue and sell from time to time through the
sales agent shares of common stock having an aggregate offering
price of up to $25.0 million. As of July 28, 2020, since the
commencement of the program, Navios Acquisition has issued 516,250
shares of common stock and received net proceeds of $3.2
million.
Exercised our option for VLCC newbuilding under bareboat
charter
In the second quarter of 2020, Navios Acquisition exercised its
option for a fourth Japanese newbuild VLCC under a twelve year
bareboat charter agreement with de-escalating purchase options and
expected delivery in the second quarter of 2022.
The bareboat agreement reflects an implied price of
approximately $84.5 million and an annual effective interest of
approximately 6% fixed for the duration of the agreement.
Fleet employment
As of July 28, 2020, Navios Acquisition’s core fleet consisted
of a total of 47 vessels, of which 14 are very large crude carriers
(“VLCCs”) (including four bareboat chartered-in VLCCs expected to
be delivered in each of the fourth quarter of 2020, and the first
and the third quarters of 2021 and the second quarter of 2022), 31
are product tankers and two are chemical tankers. Navios
Acquisition also owns seven containerships that are accounted for
as held for sale.
Currently, Navios Acquisition has contracted 85.5% of its
available days of its core fleet on a charter-out basis for the
remaining six month period of 2020. The average base contractual
net daily charter-out rate for the 74.0% of available days that are
contracted on base rate and/or base rate with profit sharing
arrangements is expected to be $19,622 for the second half of
2020.
FINANCIAL HIGHLIGHTS For the
following results and the selected financial data presented herein,
Navios Acquisition has compiled its consolidated statements of
operations for the three and six months ended June 30, 2020
and 2019. The quarterly information for 2020 and 2019 was derived
from the unaudited condensed consolidated financial statements
for the respective periods.
| (Expressed in thousands of U.S. dollars) |
Three Month Period ended June
30, 2020 (unaudited) |
|
|
Three Month Period ended June
30, 2019 (unaudited) |
|
|
|
Six Month Period ended June 30,
2020(unaudited) |
|
|
Six Month Period ended June 30,
2019(unaudited) |
|
| Revenue |
$ |
112,224 |
|
|
$ |
58,585 |
|
|
|
$ |
210,081 |
|
|
$ |
135,704 |
|
| Net income/(loss) |
$ |
31,017 |
|
|
$ |
(16,550 |
) |
|
|
$ |
31,886 |
|
|
$ |
(15,689 |
) |
| Adjusted net income/(loss) |
$ |
32,351 |
(1) |
|
$ |
(18,554 |
) |
(2) |
|
$ |
47,243 |
(3) |
|
$ |
(17,994 |
)(4) |
| Net cash provided by/(used
in)operating activities |
$ |
20,206 |
|
|
$ |
(8,343 |
) |
|
|
$ |
50,723 |
|
|
$ |
1,545 |
|
| EBITDA |
$ |
72,612 |
|
|
$ |
24,483 |
|
|
|
$ |
114,818 |
|
|
$ |
66,147 |
|
| Adjusted EBITDA |
$ |
72,735 |
(1) |
|
$ |
22,120 |
|
(2) |
|
$ |
128,964 |
(3) |
|
$ |
63,362 |
(4) |
| Earning/ (loss) per share (basic) |
$ |
1.95 |
|
|
$ |
(1.23 |
) |
|
|
$ |
2.01 |
|
|
$ |
(1.18 |
) |
| Earnings/ (loss)per share (diluted) |
$ |
1.93 |
|
|
$ |
(1.23 |
) |
|
|
$ |
1.99 |
|
|
$ |
(1.18 |
) |
| Adjusted earnings/ (loss) per share (basic) |
$ |
2.03 |
(1) |
|
$ |
(1.33 |
) |
(2) |
|
$ |
2.98 |
(3) |
|
$ |
(1.30 |
)(4) |
| Adjusted earnings/ (loss) per share (diluted) |
$ |
2.01 |
(1) |
|
$ |
(1.33 |
) |
(2) |
|
$ |
2.98 |
(3) |
|
$ |
(1.30 |
)(4) |
|
(1) |
EBITDA, net earnings/(loss) and earnings/(loss) per share (basic
and diluted) for the three month period ended June 30, 2020 have
been adjusted to exclude $0.1 million of non-cash stock based
compensation. Net earnings/(loss) for the three month period ended
June 30, 2020 have been further adjusted to exclude $1.2 million
write off of deferred finance costs. |
|
(2) |
EBITDA, net earnings/(loss) and
earnings/(loss) per share (basic and diluted) for the three month
period ended June 30, 2019 have been adjusted to exclude $2.6
million gain on sale of vessels and $0.2 million of non-cash stock
based compensation. Net earnings/(loss) for the three month period
ended June 30, 2019 have been further adjusted to exclude $0.4
million write off of deferred finance costs. |
|
(3) |
EBITDA, net earnings/(loss) and
earnings/(loss) per share (basic and diluted) for the six month
period ended June 30, 2020 have been adjusted to exclude a $13.9
million impairment loss relating to the other-than-temporary
impairment recognized in the Navios Acquisition’s receivable from
Navios Europe II and $0.2 million of non-cash stock based
compensation. Net earnings/(loss) for the six month period ended
June 30, 2020 have been further adjusted to exclude $1.2 million
write off of deferred finance costs. |
|
(4) |
EBITDA, net earnings/(loss) and
earnings/(loss) per share (basic and diluted) for the six month
period ended June 30, 2019 have been adjusted to exclude $3.2
million gain on sale of vessels and $0.5 million of non-cash stock
based compensation. Net earnings/(loss) for the six month period
ended June 30, 2019 have been further adjusted to exclude $0.5
million write off of deferred finance costs.EBITDA, Adjusted
EBITDA, Adjusted net income and Adjusted earnings per share
(basic and diluted) are non-GAAP financial measures and should not
be used in isolation or substitution for Navios Acquisition’s
results (see Exhibit II for reconciliation of EBITDA and Adjusted
EBITDA). |
|
|
|
Three month periods ended June 30, 2020 and
2019
Revenue for the three month period ended June 30, 2020
increased by $53.6 million, or 91.6%, to $112.2 million,
as compared to $58.6 million for the same period of 2019. The
increase was mainly attributable to an: (i) increase in revenue by
$8.1 million due to the acquisition of five product tankers of
Navios Europe I in December 2019; and (ii) increase in market rates
during the three month period ended June 30, 2020 as compared
to the same period of 2019; partially mitigated by the sale of
three VLCCs in 2019. Available days of the fleet increased to
3,859 days for the three month period ended June 30,
2020, as compared to 3,503 days for the three month period
ended June 30, 2019, due to the reasons mentioned above. The
time charter equivalent rate, or TCE Rate, increased to $28,187 for
the three month period ended June 30, 2020, from $15,525 for
the three month period ended June 30, 2019.
Time charter and voyage expenses for the three month period
ended June 30, 2020 decreased by $0.7 million, or 17.8%, to
$3.5 million, as compared to $4.2 million for the same period of
2019. The decrease was mainly attributable to a $1.1 million
decrease in bunkers consumption and voyage expenses related to the
spot voyages incurred in the period; partially mitigated by a $0.4
million increase in brokers’ commission.
Net income was $31.0 million for the three month period
ended June 30, 2020 as compared to $16.6 million net loss
for the same period of 2019. Net income was affected by the items
described in the table above. Adjusted net income for the three
month period ended June 30, 2020 was $32.4 million as compared
to $18.6 million adjusted net loss for the same period of 2019. The
increase in adjusted net income was mainly attributable to a : (a)
$50.6 million increase in adjusted EBITDA; (b) $2.9 million
decrease in interest expense and finance cost (excluding write off
of deferred finance costs); and (c) $0.7 million decrease in
depreciation and amortization; partially mitigated by a : (i) $2.3
million decrease in interest income; and (ii) $1.0 million increase
in direct vessel expenses (in relation to amortization of dry dock
and special survey cost).
Adjusted EBITDA affected by the items described in the table
above, for the three month period ended June 30, 2020
increased by $50.6 million to $72.7 million, as compared
to $22.1 million for the same period of 2019. The increase in
Adjusted EBITDA was mainly due to a: (a) $53.6 million increase in
revenue; (b) $0.7 million decrease in time charter and voyage
expenses; (c) $0.4 million decrease in general and administrative
expenses (excluding stock-based compensation); and (d) $0.2 million
increase in other expense; partially mitigated by a: (i) $3.4
million increase in operating expenses mainly due to the
acquisition of the five product tankers of Navios Europe I in
December 2019 and to the amendment of the fees under the management
agreement, that was also partially impacted by the sale of three
VLCCs in 2019; and (ii) $0.9 million decrease in equity in net
earnings of affiliated companies.
Six month periods ended June 30, 2020 and
2019
Revenue for the six month period ended June 30, 2020
increased by $74.4 million, or 54.8%, to $210.1 million,
as compared to $135.7 million for the same period of 2019. The
increase was mainly attributable to an: (i) increase in revenue by
$16.9 million due to the acquisition of five product tankers of
Navios Europe I in December 2019; and (ii) increase in market rates
during the six month period ended June 30, 2020 as compared to
the same period of 2019; partially mitigated by the sale of three
VLCCs in 2019. Available days of the fleet increased to
7,614 days for the six month period ended June 30, 2020,
as compared to 7,187 days for the six month period ended
June 30, 2019, due to the reasons mentioned above. The TCE
Rate increased to $26,339 for the six month period ended
June 30, 2020, from $17,635 for the six month period ended
June 30, 2019.
Time charter and voyage expenses for the six month period ended
June 30, 2020 increased by $0.5 million, or 6.3%, to $9.5
million, as compared to $9.0 million for the same period of 2019.
The increase was mainly attributable to a: (a) $0.4 million
increase in brokers’ commission; and (b) a $0.1 million increase in
bunkers consumption and voyage expenses related to the spot voyages
incurred in the period.
Net income was $31.9 million for the six month period
ended June 30, 2020 as compared to $15.7 million net loss
for the same period of 2019. Net income was affected by the items
described in the table above. Adjusted net income for the six month
period ended June 30, 2020 was $47.2 million as compared to
$18.0 million adjusted net loss for the same period of 2019. The
increase in adjusted net income was mainly attributable to a : (a)
$65.6 million increase in adjusted EBITDA; (b) $3.8 million
decrease in interest expense and finance cost (excluding write off
of deferred finance costs) ; and (c) $1.8 million decrease in
depreciation and amortization; partially mitigated by a: (i) $4.4
million decrease in interest income; and (ii) $1.5 million increase
in direct vessel expenses (in relation to amortization of dry dock
and special survey cost).
Adjusted EBITDA affected by the items described in the table
above, for the six month period ended June 30, 2020 increased
by $65.6 million to $129.0 million, as compared to $63.4
million for the same period of 2019. The increase in Adjusted
EBITDA was mainly due to a: (a) $74.4 million increase in revenue;
and (b) $1.5 million decrease in general and administrative
expenses (excluding stock-based compensation); partially mitigated
by a: (i) $5.3 million increase in operating expenses mainly due to
the acquisition of the five product tankers of Navios Europe I in
December 2019 and to the amendment of the fees under the management
agreement, that was also partially impacted by the sale of three
VLCCs in 2019; (ii) $1.7 million decrease in equity in net earnings
of affiliated companies; (iii) $1.3 million decrease in other
income; (iv) $1.0 million increase in other expense; (v)
$0.6 million increase in time charter and voyage expenses; and
(vi) $0.4 million increase in direct vessel expenses (other than
amortization of dry dock and special survey cost).
Fleet employment
profile The following table
reflects certain key indicators of the performance of Navios
Acquisition and its core fleet for the three and six month periods
ended June 30, 2020 and 2019.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three month period ended
June 30, |
|
|
Six month period ended
June 30, |
|
| |
2020
(unaudited) |
|
|
2019
(unaudited) |
|
|
2020
(unaudited) |
|
|
2019
(unaudited) |
|
| FLEET DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Available days(1) |
|
3,859 |
|
|
|
3,503 |
|
|
|
7,614 |
|
|
|
7,187 |
|
| Operating days(2) |
|
3,829 |
|
|
|
3,498 |
|
|
|
7,539 |
|
|
|
7,170 |
|
| Fleet utilization(3) |
|
99.2 |
% |
|
|
99.8 |
% |
|
|
99.0 |
% |
|
|
99.8 |
% |
| Vessels operating at period
end |
|
50 |
|
|
|
39 |
|
|
|
50 |
|
|
|
39 |
|
| AVERAGE DAILY
RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Time charter equivalent rate per
day(4) |
$ |
28,187 |
|
|
$ |
15,525 |
|
|
$ |
26,339 |
|
|
$ |
17,635 |
|
Navios Acquisition believes that the important measures for
analyzing trends in its results of income consist of the
following:
|
(1) |
Available days: Available days for the fleet are
total calendar days the vessels were in Navios Acquisition’s
possession for the relevant period after subtracting off-hire days
associated with major repairs, drydocking or special surveys. The
shipping industry uses available days to measure the number of days
in a relevant period during which vessels should be capable of
generating revenues. |
|
(2) |
Operating days:
Operating days are the number of available days in the relevant
period less the aggregate number of days that the vessels are
off-hire due to any reason, including unforeseen
circumstances. |
|
(3) |
Fleet
utilization: Fleet utilization is the percentage of time
that Navios Acquisition’s vessels were available for generating
revenue, and is determined by dividing the number of operating days
during a relevant period by the number of available days during
that period. |
|
(4) |
TCE
Rate: Time charter equivalent rate per day is defined
as voyage and time charter revenues less voyage expenses during a
period divided by the number of available days during the period.
The TCE Rate per day is a standard shipping industry performance
measure used primarily to present the actual daily earnings
generated by vessels of various types of charter contracts for the
number of available days of the fleet. |
Conference Call, Webcast and Presentation
Details:
As previously announced, Navios Acquisition will
host a conference call on Thursday, July 30, 2020 at 8:30 am ET, at
which time Navios Acquisitions' senior management will provide
highlights and commentary on earnings results for the second
quarter and six months ended June 30, 2020.
US Dial In: +1.877.480.3873International Dial
In: +1.404.665.9927Conference ID: 744 3737
The conference call replay will be available
shortly after the live call and remain available for one week at
the following numbers:
US Replay Dial In: +1.800.585.8367International
Replay Dial In: +1.404.537.3406Conference ID: 744 3737
The call will be simultaneously Webcast. The
Webcast will be available on the Navios Acquisition website,
www.navios-acquisition.com, under the "Investors" section. The
Webcast will be archived and available at the same Web address for
two weeks following the call.
A supplemental slide presentation will be
available by 8:00 am ET on the day of the call.
About Navios Acquisition
Navios Acquisition (NYSE: NNA) is an owner and
operator of tanker vessels focusing on the transportation of
petroleum products (clean and dirty) and bulk liquid
chemicals.
For more information about Navios Acquisition, please visit our
website: www.navios-acquisition.com.
Forward Looking Statements
This press release contains forward-looking statements (as
defined in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended)
concerning future events and expectations, including with respect
to Navios Acquisition’s future dividends, expected cash flow
generation and Navios Acquisition’s growth strategy and measures to
implement such strategy, including expected vessel acquisitions and
entering into further employment contracts. Words such as “may,”
“expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,”
“estimates,” and variations of such words and similar expressions
are intended to identify forward-looking statements. Such
statements include comments regarding expected revenue and
employment contracts. These forward-looking statements are based on
the information available to, and the expectations and assumptions
deemed reasonable by, Navios Acquisition at the time these
statements were made. Although Navios Acquisition believes that the
expectations reflected in such forward-looking statements are
reasonable, no assurance can be given that such expectations will
prove to have been correct. These statements involve risks and are
based upon a number of assumptions and estimates that are
inherently subject to significant uncertainties and contingencies,
many of which are beyond the control of Navios Acquisition. Actual
results may differ materially from those expressed or implied by
such forward-looking statements. Factors that could cause actual
results to differ materially include, but are not limited risks
related to: global and regional economic and political conditions
including the impact of the COVID-19 pandemic and efforts
throughout the world to contain its spread, including effects on
global economic activity, demand for seaborne transportation of the
products we ship, the ability and willingness of charterers to
fulfill their obligations to us and prevailing charter rates,
shipyards performing scrubber installations, drydocking and
repairs, changing vessel crews and availability of financing;
potential disruption of shipping routes due to accidents, diseases,
pandemics, political events, piracy or acts by terrorists,
including the impact of the COVID-19 pandemic and the
ongoing efforts throughout the world to contain it; the
creditworthiness of our charterers and the ability of our contract
counterparties to fulfill their obligations to us; tanker industry
trends, including charter rates and vessel values and factors
affecting vessel supply and demand; the aging of our vessels and
resultant increases in operation and dry docking costs; the loss of
any customer or charter or vessel; our ability to repay outstanding
indebtedness, to obtain additional financing and to obtain
replacement charters for our vessels, in each case, at commercially
acceptable rates or at all; increases in costs and expenses,
including but not limited to crew wages, insurance, provisions,
port expenses, lube oil, bunkers, repairs, maintenance and general
and administrative expenses; the expected cost of, and our ability
to comply with, governmental regulations and maritime
self-regulatory organization standards, as well as standard
regulations imposed by our charterers applicable to our business;
potential liability from litigation and our vessel operations,
including discharge of pollutants; general domestic and
international political conditions; competitive factors in the
market in which Navios Acquisition operates; operations outside the
United States; and other factors listed from time to time in Navios
Acquisition’s filings with the SEC, including its annual and
interim reports filed on Form 20-F and Form 6-K. Navios Acquisition
expressly disclaims any obligations or undertaking to release
publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in Navios Acquisition’s
expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is based. Navios
Acquisition makes no prediction or statement about the performance
of its common stock.
Public & Investor Relations Contact:Navios
Maritime Acquisition
Corporation+1.212.906.8644info@navios-acquisition.com
EXHIBIT I
|
|
|
NAVIOS MARITIME ACQUISITION CORPORATION |
|
SELECTED BALANCE SHEET DATA |
|
(Expressed in thousands of U.S. dollars- except share data) |
|
|
| |
June 30,
2020 |
|
|
December 31,
2019 |
|
|
ASSETS |
|
|
|
|
|
|
|
| Cash and cash equivalents,
including restricted cash |
$ |
68,482 |
|
|
$ |
44,051 |
|
| Vessels, net |
|
1,318,656 |
|
|
|
1,348,251 |
|
| Other assets (including current
and non-current) |
$ |
196,960 |
|
|
$ |
162,074 |
|
| Goodwill |
|
1,579 |
|
|
|
1,579 |
|
| Total
assets |
$ |
1,585,677 |
|
|
$ |
1,555,955 |
|
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
| Other current liabilities |
$ |
187,231 |
|
|
$ |
68,986 |
|
| Long-term debt, including current
portion, net of deferred finance costs and premium |
|
1,061,078 |
|
|
|
1,173,117 |
|
| Total
liabilities |
$ |
1,248,309 |
|
|
$ |
1,242,103 |
|
| Total stockholders’
equity |
|
337,368 |
|
|
|
313,852 |
|
| Total liabilities and
stockholders’ equity |
$ |
1,585,677 |
|
|
$ |
1,555,955 |
|
| |
|
|
|
|
|
|
|
| |
| NAVIOS
MARITIME ACQUISITION CORPORATION |
| CONDENSED
CONSOLIDATED STATEMENTS OF INCOME |
| (Expressed in
thousands of U.S. dollars- except share and per share data) |
| |
| |
For the Three Months Ended
June 30, 2020 (unaudited) |
|
|
For the Three Months Ended
June 30, 2019 (unaudited) |
|
|
For the Six Months Ended June 30, 2020
(unaudited) |
|
|
For the Six Months Ended June 30, 2019
(unaudited) |
|
|
Revenue |
$ |
112,224 |
|
|
$ |
58,585 |
|
|
$ |
210,081 |
|
|
$ |
135,704 |
|
| Time charter and voyage
expenses |
|
(3,450 |
) |
|
|
(4,196 |
) |
|
|
(9,532 |
) |
|
|
(8,963 |
) |
| Direct vessel expenses |
|
(3,465 |
) |
|
|
(2,323 |
) |
|
|
(6,605 |
) |
|
|
(4,678 |
) |
| Vessel operating expenses
(management fees) |
|
(29,836 |
) |
|
|
(26,481 |
) |
|
|
(59,673 |
) |
|
|
(54,387 |
) |
| General and administrative
expenses |
|
(6,293 |
) |
|
|
(6,808 |
) |
|
|
(10,247 |
) |
|
|
(11,945 |
) |
| Depreciation and
amortization |
|
(16,643 |
) |
|
|
(17,320 |
) |
|
|
(33,249 |
) |
|
|
(35,041 |
) |
| Gain on sale of vessels |
|
— |
|
|
|
2,594 |
|
|
|
— |
|
|
|
3,245 |
|
| Interest income |
|
4 |
|
|
|
2,296 |
|
|
|
7 |
|
|
|
4,456 |
|
| Interest expense and finance
cost |
|
(21,680 |
) |
|
|
(23,696 |
) |
|
|
(43,523 |
) |
|
|
(46,625 |
) |
| Impairment of receivable in
affiliated company / Equity in net earnings of affiliated
companies |
|
— |
|
|
|
889 |
|
|
|
(13,900 |
) |
|
|
1,734 |
|
| Other income |
|
156 |
|
|
|
— |
|
|
|
— |
|
|
|
1,333 |
|
| Other expense |
|
— |
|
|
|
(90 |
) |
|
|
(1,473 |
) |
|
|
(522 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
income/
(loss) |
$ |
31,017 |
|
|
$ |
(16,550 |
) |
|
$ |
31,886 |
|
|
$ |
(15,689 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income/ (loss) per share,
basic |
$ |
1.95 |
|
|
$ |
(1.23 |
) |
|
$ |
2.01 |
|
|
$ |
(1.18 |
) |
| Net income/ (loss) per share,
diluted |
|
1.93 |
|
|
|
(1.23 |
) |
|
|
1.99 |
|
|
|
(1.18 |
) |
| Weighted average number of
shares, basic |
|
15,888,354 |
|
|
|
13,510,361 |
|
|
|
15,803,166 |
|
|
|
13,414,547 |
|
| Weighted average number of
shares, diluted |
|
16,043,704 |
|
|
|
13,510,361 |
|
|
|
15,958,897 |
|
|
|
13,414,547 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT II
Reconciliation of EBITDA and Adjusted EBITDA to Net Cash
from Operating Activities
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Month Period Ended June 30, 2020
(unaudited) |
|
|
Three Month Period Ended June 30, 2019
(unaudited) |
|
|
Six Month Period Ended June 30, 2020
(unaudited) |
|
|
Six Month Period Ended June 30, 2019
(unaudited) |
|
| Expressed in thousands of
U.S. dollars |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by/ (used in)
operating activities |
$ |
20,206 |
|
|
$ |
(8,343 |
) |
|
$ |
50,723 |
|
|
$ |
1,545 |
|
| Net decrease/ (increase) in
operating assets |
|
12,592 |
|
|
|
(2,598 |
) |
|
|
(1,369 |
) |
|
|
5,443 |
|
| Net increase in operating
liabilities |
|
14,321 |
|
|
|
10,521 |
|
|
|
18,718 |
|
|
|
13,102 |
|
| Net interest cost |
|
21,676 |
|
|
|
21,400 |
|
|
|
43,516 |
|
|
|
42,169 |
|
| Amortization and write-off of deferred finance costs and bond
premium |
|
(1,533 |
) |
|
|
(1,319 |
) |
|
|
(3,045 |
) |
|
|
(2,293 |
) |
| Impairment of receivable in Navios Europe II / Equity in net
earnings of affiliated companies |
|
— |
|
|
|
889 |
|
|
|
(13,900 |
) |
|
|
1,734 |
|
| Payments for dry dock and special
survey costs |
|
5,473 |
|
|
|
1,570 |
|
|
|
20,421 |
|
|
|
1,662 |
|
| Gain on sale of vessels |
|
— |
|
|
|
2,594 |
|
|
|
— |
|
|
|
3,245 |
|
| Stock-based compensation |
|
(123 |
) |
|
|
(231 |
) |
|
|
(246 |
) |
|
|
(460 |
) |
| EBITDA |
|
72,612 |
|
|
|
24,483 |
|
|
|
114,818 |
|
|
|
66,147 |
|
| Gain on sale of vessels |
|
— |
|
|
|
(2,594 |
) |
|
|
— |
|
|
|
(3,245 |
) |
| Impairment of receivable in
Navios Europe II |
|
— |
|
|
|
— |
|
|
|
13,900 |
|
|
|
— |
|
| Stock-based compensation |
|
123 |
|
|
|
231 |
|
|
|
246 |
|
|
|
460 |
|
| Adjusted
EBITDA |
|
72,735 |
|
|
|
22,120 |
|
|
|
128,964 |
|
|
|
63,362 |
|
| |
Three Month Period Ended June 30, 2020
(unaudited) |
|
|
Three Month Period Ended June 30, 2019
(unaudited) |
|
|
Six Month Period Ended June 30, 2020
(unaudited) |
|
|
Six Month Period Ended June 30, 2019
(unaudited) |
|
|
Net cash provided by/ (used in) operating activities |
$ |
20,206 |
|
|
$ |
(8,343 |
) |
|
$ |
50,723 |
|
|
$ |
1,545 |
|
| Net cash (used in) / provided by
investing activities |
$ |
(38,741 |
) |
|
$ |
8,288 |
|
|
$ |
(44,623 |
) |
|
$ |
25,738 |
|
| Net cash provided by/ (used in)
financing activities |
$ |
35,949 |
|
|
$ |
(25,881 |
) |
|
$ |
18,331 |
|
|
$ |
(31,930 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disclosure of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted net income/ (loss) and
Adjusted income/ (loss) per share (basic and diluted) are non-U.S.
GAAP financial measures and should not be used in isolation or as
substitution for Navios Acquisition’s results calculated in
accordance with U.S. generally accepted accounting principles
(“U.S. GAAP”).
EBITDA represents net income/ (loss) before interest and
finance costs, before depreciation and amortization and before
income taxes. Adjusted EBITDA in this document represents
EBITDA excluding certain items as described under “Financial
Highlights”. Adjusted net income/ (loss) and Adjusted income/
(loss) per share (basic and diluted) represent Net income/
(loss) and income/ (loss) per share (basic and diluted),
excluding certain items as described under “Financial Highlights”.
We use Adjusted EBITDA as liquidity measure and reconcile EBITDA
and Adjusted EBITDA to net cash provided by/ (used in) operating
activities, the most comparable U.S. GAAP liquidity measure. EBITDA
is calculated as follows: net cash provided by/(used in) operating
activities adding back, when applicable and as the case may be, the
effect of: (i) net increase/(decrease) in operating assets; (ii)
net (increase)/decrease in operating liabilities; (iii) net
interest cost; (iv) amortization of deferred finance costs and
other related expenses; (v) equity/ (loss) in net earnings of
affiliates, net of dividends received; (vi) payments for dry dock
and special survey costs; (vii) impairment charges; (viii) gain on
sale of assets; (ix) gain/ (loss) on debt repayment; (x) stock-
based compensation and (xi) transaction costs. Navios Acquisition
believes that EBITDA and Adjusted EBITDA are each the basis upon
which liquidity can be assessed and present useful information to
investors regarding Navios Acquisition’s ability to service and/or
incur indebtedness, pay capital expenditures, meet working capital
requirements and pay dividends. Navios Acquisition also believes
that EBITDA and Adjusted EBITDA are used: (i) by potential
lenders to evaluate potential transactions; (ii) to evaluate and
price potential acquisition candidates; and (iii) by securities
analysts, investors and other interested parties in the evaluation
of companies in our industry. EBITDA and Adjusted EBITDA have
limitations as an analytical tool, and should not be considered in
isolation or as a substitute for the analysis of Navios
Acquisition’s results as reported under U.S. GAAP. Some of these
limitations are: (i) EBITDA and Adjusted EBITDA do not reflect
changes in, or cash requirements for, working capital needs; and
(ii) although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized may have to be replaced
in the future. EBITDA and Adjusted EBITDA do not reflect any cash
requirements for such capital expenditures. Because of these
limitations, EBITDA and Adjusted EBITDA should not be considered as
a principal indicator of Navios Acquisition’s performance.
Furthermore, our calculation of EBITDA and Adjusted EBITDA may not
be comparable to that reported by other companies due to
differences in methods of calculation.
EXHIBIT III
| Vessels |
Type |
Year Built/Delivery |
DWT |
|
Date |
|
Owned Vessels – Core fleet |
|
|
|
|
| Nave Polaris |
Chemical Tanker |
2011 |
|
25,145 |
| Nave Cosmos |
Chemical Tanker |
2010 |
|
25,130 |
| Star N |
MR1 Product
Tanker |
2009 |
|
37,836 |
| Hector N |
MR1 Product Tanker |
2008 |
|
38,402 |
| Perseus N |
MR1 Product Tanker |
2009 |
|
36,264 |
| Nave Velocity |
MR2 Product
Tanker |
2015 |
|
49,999 |
| Nave Sextans |
MR2 Product
Tanker |
2015 |
|
49,999 |
| Nave Pyxis |
MR2 Product
Tanker |
2014 |
|
49,998 |
| Nave
Luminosity |
MR2 Product
Tanker |
2014 |
|
49,999 |
| Nave Jupiter |
MR2 Product
Tanker |
2014 |
|
49,999 |
| Bougainville |
MR2 Product
Tanker |
2013 |
|
50,626 |
| Nave Alderamin |
MR2 Product
Tanker |
2013 |
|
49,998 |
| Nave Bellatrix |
MR2 Product
Tanker |
2013 |
|
49,999 |
| Nave Capella |
MR2 Product
Tanker |
2013 |
|
49,995 |
| Nave Orion |
MR2 Product
Tanker |
2013 |
|
49,999 |
| Nave Titan |
MR2 Product
Tanker |
2013 |
|
49,999 |
| Nave Aquila |
MR2 Product
Tanker |
2012 |
|
49,991 |
| Nave Atria |
MR2 Product
Tanker |
2012 |
|
49,992 |
| Nave Orbit |
MR2 Product
Tanker |
2009 |
|
50,470 |
| Nave Equator |
MR2 Product
Tanker |
2009 |
|
50,542 |
| Nave Equinox |
MR2 Product
Tanker |
2007 |
|
50,922 |
| Nave Pulsar |
MR2 Product
Tanker |
2007 |
|
50,922 |
| Nave Dorado |
MR2 Product
Tanker |
2005 |
|
47,999 |
| Nave Atropos |
LR1 Product
Tanker |
2013 |
|
74,695 |
| Nave Rigel |
LR1 Product
Tanker |
2013 |
|
74,673 |
| Nave Cassiopeia |
LR1 Product
Tanker |
2012 |
|
74,711 |
| Nave Cetus |
LR1 Product
Tanker |
2012 |
|
74,581 |
| Nave Estella |
LR1 Product
Tanker |
2012 |
|
75,000 |
| Nave Andromeda |
LR1 Product
Tanker |
2011 |
|
75,000 |
| Nave Ariadne |
LR1 Product
Tanker |
2007 |
|
74,671 |
| Nave Cielo |
LR1 Product
Tanker |
2007 |
|
74,671 |
| Lumen N |
LR1 Product Tanker |
2008 |
|
63,599 |
| Aurora N |
LR1 Product Tanker |
2008 |
|
63,495 |
| Nave Neutrino |
VLCC |
2003 |
|
298,287 |
| Nave Celeste |
VLCC |
2003 |
|
298,717 |
| Nave Photon |
VLCC |
2008 |
|
297,395 |
| Nave Spherical |
VLCC |
2009 |
|
297,188 |
| Nave Galactic |
VLCC |
2009 |
|
297,168 |
| Nave Quasar |
VLCC |
2010 |
|
297,376 |
| Nave Synergy |
VLCC |
2010 |
299,973 |
| Nave Constellation |
VLCC |
2010 |
|
298,000 |
| Nave Universe |
VLCC |
2011 |
|
297,066 |
| Nave Buena
Suerte |
VLCC |
2011 |
|
297,491 |
| Vessels to be delivered* |
|
|
|
|
| TBN I |
VLCC |
Expected Q4 2020 |
|
310,000 |
| TBN II |
VLCC |
Expected Q1 2021 |
|
310,000 |
| TBN III |
VLCC |
Expected Q3 2021 |
|
310,000 |
| TBN IV |
VLCC |
Expected Q2 2022 |
|
310,000 |
| Owned Vessels held for sale |
|
|
|
|
| Acrux N |
Container |
2010 |
|
23,338 |
| Allegro N |
Container |
2014 |
|
46,999 |
| Fleur N |
Container |
2012 |
|
41,130 |
| Ete N |
Container |
2012 |
|
41,139 |
| Spectrum N |
Container |
2009 |
|
34,333 |
| Solstice N |
Container |
2007 |
|
44,023 |
| Vita N |
Container |
2010 |
|
23,359 |
| *
Bareboat chartered-in vessels with purchase
option. |
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