SOURCE: Navios Maritime Acquisition Corporation

Navios Maritime Acquisition Corporation

May 05, 2011 06:30 ET

Navios Maritime Acquisition Corporation Reports Financial Results for the First Quarter Ended March 31, 2011

Quarterly Dividend of $0.05 per Share

Revenue of $25.1 Million for the First Quarter of 2011

EBITDA of $16.1 Million for the First Quarter of 2011

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.

Contact Information