PIRAEUS, GREECE--(Marketwire - May 5, 2011) - Navios Maritime Acquisition Corporation
("Navios Acquisition") (NYSE: NNA), an owner and operator of tanker
vessels, today reported its financial results for the first quarter ended
March 31, 2011.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios
Acquisition, said, "We entered 2011 well positioned because of our
significant achievements in 2010. As a result, we have stable cash flow
from our VLCC fleet, including the new build VLCC expected to be delivered
in June, and a solid balance sheet. This combination allows us to pay a
dividend to our shareholders."
Ms. Frangou continued, "We continue to believe in the product tanker
investment thesis. Vessel values are higher than our entry price, and
demand fundamentals continue to improve. We anticipate that the market will
allow us to capitalize on this improving rate environment when we take
delivery of two product tankers in the fourth quarter of this year."
2011 HIGHLIGHTS -- RECENT DEVELOPMENTS
Delivery of the chemical tanker vessel Nave Polaris
On January 27, 2011, Navios Acquisition took delivery of a 25,145 mt
chemical tanker, the Nave Polaris, from a South Korean shipyard. The vessel
is chartered out for six months at a net rate of $10,238 per day for the
first three months and at a net rate of $11,213 per day for the remaining
of the charter-out period.
Dividend of $0.05 per share of common stock
On May 2, 2011, the Board of Directors of Navios Acquisition declared a
quarterly cash dividend for the first quarter of 2011 of $0.05 per share of
common stock. The dividend is payable on July 6, 2011 to stockholders of
record as of June 15, 2011. The declaration and payment of any further
dividends remains subject to the discretion of the Board and will depend
on, among other things, Navios Acquisition's cash requirements as measured
by market opportunities and restrictions under its credit agreements.
Issuance of preferred stock
Pursuant to an Exchange Agreement entered into on March 30, 2011, Navios
Maritime Holdings Inc. exchanged 7,676,000 shares of Navios Acquisition's
common stock it held for 1,000 shares of non-voting Series C Preferred
Stock of Navios Acquisition.
FINANCIAL HIGHLIGHTS
For the following results and the selected financial data presented herein,
Navios Acquisition has compiled consolidated statement of operations for
the three month periods ended March 31, 2011 and 2010. The quarterly 2011
and 2010 information was derived from the unaudited condensed consolidated
financial statements for the respective periods.
Three Month Three Month
Period ended Period ended
March 31, 2011 March 31, 2010
(Expressed in thousands of U.S. dollars) (unaudited) (unaudited)
------------ ------------
Revenue $ 25,130 $ --
Net loss $ (406) $ (297)
EBITDA $ 16,052 $ (342)
Loss per share basic and diluted $ (0.01) $ (0.01)
EBITDA is a non-US GAAP financial measure and should not be used in
isolation or substitution for Navios Acquisition's results.
Three month periods ended March 31, 2011 and 2010
Revenue for the three month period ended March 31, 2011 was $25.1 million
at a time charter equivalent ("TCE") rate of $29,558. Following the
delivery of a chemical tanker, the Nave Polaris, on January 27, 2011,
Navios Acquisition had 874 available days. There were no operations in the
corresponding period in 2010.
Net loss for the three month period ended March 31, 2011 amounted to $0.4
million compared to a $0.3 million loss for the three month period ended
March 31, 2010. The $0.4 million loss for the three month period ended
March 31, 2011 was due to: (a) $7.6 million of management fees; (b) $8.0
million of depreciation and amortization; (c) $8.9 million of interest
expense and finance cost; (d) $1.0 million of general and administrative
expenses; (e) $0.4 million of voyage expenses; and (f) $0.1 million of
other expenses. The $26.0 million of expenses were partially offset by
$25.1 million of revenue and $0.5 million of interest net income.
EBITDA for the three month period ended March 31, 2011 was $16.1 million as
a result of the $25.1 million of revenue from vessel operations which was
partially offset by: (a) $7.6 million of management expenses; (b) $0.4
million of voyage expenses; (c) $1.0 million of general and administrative
expenses; and (d) $0.1 million of other net expenses.
During the three month period ended March 31, 2010, Navios Acquisition had
no operations and the $0.3 million loss was a result of $0.3 million of
general and administrative expenses.
Time Charter Coverage
As of May 4, 2011, Navios Acquisition had contracted 89.5%, 57.4% and 36.3%
of its available days on a charter-out basis for 2011, 2012 and 2013,
respectively, equivalent to $112.0 million, $116.1 million and $109.5
million of revenue, respectively. The average contractual daily charter-out
rate for the fleet is $31,868, $35,231 and $37,524 for 2011, 2012 and 2013,
respectively.
Fleet Employment Profile
The following table reflects certain key indicators indicative of the
performance of Navios Acquisition and its core fleet for the three month
period ended March 31, 2011.
Three Months Ended Year Ended
March 31, 2011 March 31, 2010
(unaudited) (unaudited)
------------ ------------
FLEET DATA
Available days (1) 874 --
Operating days (2) 843 --
Fleet utilization (3) 96.5% --
Vessels operating at period end 10 --
Time Charter Equivalent per day (4) $ 29,558 $ --
(1) Available days: Available days is the total number of days a vessel is
controlled by a company less the aggregate number of days that the vessel
is off-hire due to scheduled repairs or repairs under guarantee, vessel
upgrades or special surveys. The shipping industry uses available days to
measure the number of days in a period during which vessels should be
capable of generating revenues.
(2) Operating days: Operating days is the number of available days in a
period less the aggregate number of days that the vessels are off-hire due
to any reason, including lack of demand or unforeseen circumstances. The
shipping industry uses operating days to measure the aggregate number of
days in a period during which vessels actually generate revenues.
(3) Fleet utilization: Fleet utilization is obtained by dividing the number
of operating days during a period by the number of available days during
the period. The shipping industry uses fleet utilization to measure a
company's efficiency in finding suitable employment for its vessels and
minimizing the amount of days that its vessels are off-hire for reasons
other than scheduled repairs or repairs under guarantee, vessel upgrades,
special surveys or vessel positioning.
(4) Time Charter Equivalent: Time Charter Equivalent 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 is a standard
shipping industry performance measure used primarily to compare daily
earnings generated by vessels on time charters with daily earnings
generated by vessels on voyage charters, because charter hire rates for
vessels on voyage charters are generally not expressed in per day amounts,
while charter hire rates for vessels on time charters generally are
expressed in such amounts.
Conference Call, Webcast and Presentation Details:
As previously announced, Navios Acquisition will host a conference call
today, Thursday, May 5, 2011 at 8:30 am ET, at which time Navios
Acquisition's senior management will provide highlights and commentary on
the results of the first quarter ended March 31, 2011.
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 5989 8883
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: +1.800.642.1687
International Replay Dial In: +1.706.645.9291
Conference ID: 5989 8883
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 on the Navios
Acquisition website at www.navios-acquisition.com under the "Investors"
section at 7:45 am ET on the day of the call.
About Navios Acquisition
Navios Acquisition (NYSE: NNA) is an owner and operator of tanker vessels
focusing in 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 Navios Acquisition's growth strategy and measures to implement such
strategy; including expected vessel acquisitions and entering into further
time charters. Words such as "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 time
charters. 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 known and unknown risks and are based upon a number of
assumptions and estimates which 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 to
changes in the demand for crude oil, product and chemical tanker vessels,
competitive factors in the market in which Navios Acquisition operates;
risks associated with operations outside the United States; and other
factors listed from time to time in the Navios Acquisition's filings with
the Securities and Exchange Commission. 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.
EXHIBIT I
NAVIOS MARITIME ACQUISITION CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of U.S. Dollars - except share data)
March 31, December 31,
2011 2010
(unaudited)
------------ ------------
ASSETS
Current assets
Cash and cash equivalents $ 72,425 $ 61,360
Restricted cash, short term portion 17,845 15,012
Accounts receivable 1,442 4,479
Prepaid expenses & other current assets 303 351
------------ ------------
Total current assets 92,015 81,202
Vessels, net 554,235 529,659
Deposits for vessels acquisitions 272,703 296,690
Deferred financing costs, net 17,978 18,178
Goodwill 1,579 1,579
Intangible assets - other than goodwill 57,974 58,992
Restricted cash, long term portion 15,796 18,787
------------ ------------
Total non-current assets 920,265 923,885
------------ ------------
Total assets $ 1,012,280 $ 1,005,087
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 464 $ 3,454
Dividend payable 2,421 2,421
Accrued expenses 18,711 9,219
Due to related parties 7,106 6,080
Deferred revenue 2,876 2,765
Current portion of long term debt 6,586 5,086
------------ ------------
Total current liabilities 38,164 29,025
Long term debt, net of current portion 705,410 704,332
Loans due to related parties 12,391 12,391
Unfavorable lease terms 5,440 5,611
------------ ------------
Total non-current liabilities 723,241 722,334
------------ ------------
Total liabilities $ 761,405 $ 751,359
============ ============
Commitments and contingencies -- --
Stockholders' equity
Preferred stock, $0.0001 par value; 10,000,000
shares authorized (1,000,000 as of December
31, 2010); 4,540 and 3,540 issued and
outstanding as of March 31, 2011 and December
31, 2010, respectively. -- --
Common stock, $0.0001 par value; 250,000,000
shares authorized (100,000,000 as of December
31, 2010); 40,734,572 issued and 48,410,572
outstanding as of March 31, 2011 and December
31, 2010, respectively. 4 5
Additional paid-in capital 264,424 266,870
Accumulated Deficit (13,553) (13,147)
------------ ------------
Total stockholders' equity 250,875 253,728
------------ ------------
Total liabilities and stockholders' equity $ 1,012,280 $ 1,005,087
============ ============
NAVIOS MARITIME ACQUISITION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Expressed in thousands of U.S. dollars- except share and per share data)
For the For the
Three Months Three Months
Ended Ended
March 31, March 31,
2011 2010
(unaudited) (unaudited)
------------ ------------
Revenue $ 25,130 $ --
Time charter expenses (427) --
Management fees (7,584) --
General and administrative expenses (1,025) (342)
Depreciation and amortization (8,045) --
Interest income 480 45
Interest expenses and finance cost, net (8,893) --
Other expense, net (42) --
------------ ------------
Net loss $ (406) $ (297)
============ ============
Net loss attributable to common shareholders $ (431) $ (297)
============ ============
Net loss per share, basic $ (0.01) $ (0.01)
============ ============
Weighted average number of shares, basic 46,947,161 31,625,000
============ ============
Net loss per share, diluted $ (0.01) $ (0.01)
============ ============
Weighted average number of shares, diluted 46,947,161 31,625,000
============ ============
NAVIOS MARITIME ACQUISITION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. dollars)
For the Three For the Three
Months Ended Months Ended
March 31, March 31,
2011 2010
(unaudited) (unaudited)
Operating Activities
Net loss $ (406) $ (297)
Adjustments to reconcile net
loss to net cash provided by /
(used in) operating activities:
Depreciation and amortization 8,045 --
Amortization of deferred finance
cost 381 --
Changes in operating assets and
liabilities:
Decrease / (increase) in prepaid
expenses 48 (22)
Decrease in accounts receivable 3,037 --
Decrease in restricted cash 5 --
Decrease in accounts payable (2,990) (45)
Increase / (decrease) in accrued
expenses 9,492 (74)
Increase in due to related
parties 1,026 60
Increase in deferred revenue 111 --
------------ ------------
Net cash provided by / (used in)
operating activities $ 18,749 $ (378)
------------ ------------
Investing Activities
Acquisition of vessels (4,533) --
Deposits for vessel acquisition (2,995) --
Restricted cash 778 --
Net investment in trust account -- 721
------------ ------------
Net cash (used in) / provided by
investing activities $ (6,750) $ 721
------------ ------------
Financing Activities
Loan proceeds, net of deferred
finance cost 3,035 --
Loan repayments (897) --
Dividend paid (2,447) --
Restricted cash (625) --
------------ ------------
Net cash used in financing
activities $ (934) $ --
============ ============
Net increase in cash and cash
equivalents 11,065 343
Cash and cash equivalents,
beginning of year 61,360 87
----------- ------------
Cash and cash equivalents, end
of period $ 72,425 $ 430
============ ============
Supplemental disclosures of cash
flow information
Cash interest paid $ 2,674 $ --
Non-cash financing activities
Dividends payable $ 2,421 $ --
EXHIBIT II
Reconciliation of EBITDA to Net Cash provided by Operating Activities
(Expressed in thousands of US Dollars)
Three Month Three Month
Period Ended Period Ended
March 31, March 31,
2011 2010
(unaudited) (unaudited)
Net Cash provided by / (used in) operating
activities $ 18,749 $ (378)
Net (decrease) / increase in operating assets (3,090) 22
Net (increase) / decrease in operating
liabilities (7,639) 59
Net interest cost 8,413 (45)
Deferred finance costs (381) -
------------ ------------
EBITDA $ 16,052 $ (342)
============ ============
Disclosure of Non-GAAP Financial Measures
EBITDA represents net loss plus interest and finance costs and depreciation
and amortization. EBITDA is included because it is used by certain
investors to measure a company's financial performance. EBITDA is a
"non-GAAP financial measure" and should not be considered a substitute for
net income, cash flow from operating activities and other operations or
cash flow statement data prepared in accordance with accounting principles
generally accepted in the United States or as a measure of profitability or
liquidity.
Management believes EBITDA provides additional information with respect to
Navios Acquisition's ability to satisfy its obligations including debt
service, capital expenditures, working capital requirements and payment of
dividends. While EBITDA is frequently used as a measure of operating
results and the ability to meet debt service requirements, the definition
of EBITDA used here may not be comparable to that used by other companies
due to differences in methods of calculation.
EXHIBIT III
Built/ Net Expira-
Delivery Charter Profit tion
Vessels Type Date DWT Rate(1) Share Date(2)
--------- --------- -------- ---------- ---------- --------
Owned Vessels
Colin Jacob LR1 2007 74,671 17,000 50/50 June
Product above 2013
Tanker $17,000
Ariadne Jacob LR1 2007 74,671 17,000 50/50 July
Product above 2013
Tanker $17,000
Nave Cosmos Chemical 2010 25,130 11,213 (3) None August
Tanker 2011
Nave Polaris Chemical 2011 25,145 11,213 None July
Tanker 2011
Shinyo VLCC 1993 306,474 38,019 None May
Splendor 2014
Shinyo VLCC 1996 300,549 42,705 None December
Navigator 2016
C. Dream VLCC 2000 298,750 29,625 (4) 50% above March
$ 30,000 2019
40% above
$ 40,000
Shinyo Ocean VLCC 2001 281,395 38,400 50% above January
$ 43,500 2017
Shinyo VLCC 2001 287,175 38,025 50% above February
Kannika $ 44,000 2017
Shinyo VLCC 2010 298,000 48,153 35% above June
Saowalak $ 54,388 2025
40% above
$ 59,388
50% above
$ 69,388
Owned Vessels
to be
Delivered
Shinyo Kieran VLCC Q2 2011 298,000 48,153 35% above June
$ 54,388 2026
40% above
$ 59,388
50% above
$ 69,388
TBN LR1 Q4 2011 75,000
TBN LR1 Q4 2011 75,000
TBN LR1 Q3 2012 75,000
TBN LR1 Q4 2012 75,000
TBN MR2 Q1 2012 50,000
TBN MR2 Q2 2012 50,000
TBN MR2 Q3 2012 50,000
TBN MR2 Q3 2012 50,000
TBN MR2 Q4 2012 50,000
TBN MR2 Q4 2012 50,000
TBN MR2 Q4 2012 50,000
Options to
Acquire
Vessels (5)
TBN LR1 Q4 2012 75,000
TBN LR1 Q1 2013 75,000
(1) Net time charter-out rate per day (net of commissions).
(2) Estimated dates assuming midpoint of redelivery of charterers.
(3) Charterer's option to extend the charter for an additional six months
at $11,213 plus 60% / 40% profit sharing.
(4) Vessel subchartered at $34,843/day until Q3 2012.
(5) Our option to acquire the two LR1 vessels expires in July 2011.