SOURCE: Navios Maritime Acquisition Corporation

Navios Maritime Acquisition Corporation

August 18, 2015 06:53 ET

Navios Maritime Acquisition Corporation Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2015

MONACO--(Marketwired - Aug 18, 2015) - Navios Maritime Acquisition Corporation (NYSE: NNA)

  • Revenue: 29.2% increase in Q2 to $80.4 million; 29.1% increase in first half 2015 to $159.0 million
  • Adjusted EBITDA: 58.1% increase in Q2 to $55.3 million; 54.1% increase in first half 2015 to $109.2 million
  • Net income: $26.4 million for Q2; $0.17 per share; $46.4 million for first half 2015; $0.29 per share
  • Profit sharing: $8.6 million for Q2; $16.2 million for first half 2015
  • Returning capital to shareholders:
    • Quarterly dividend of $0.05 per share
    • Repurchased 526,390 shares under the $50.0 million Share Repurchase program
  • Sale of two VLCCs for a total of $100.0 million at 19% above book values

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 the six month period ended June 30, 2015.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition stated, "I am pleased with the record results we reported for the second quarter of 2015. We grew Adjusted EBITDA by 58.1% to $109.2 million and Net income to $26.4 million from a prior period loss. We also increased the return of capital to our shareholders by declaring a quarterly dividend of $0.05 per share and repurchasing 526,390 shares through our share repurchase program."

Angeliki Frangou continued, "Navios Acquisition's market position is the result of several years of hard work. We built our fleet toward the bottom of the cycle, initially by purchasing newbuildings and subsequently shifting to acquiring vessels on the water. Today, all our vessels are operating. With no newbuilding or vessel acquisition commitments, we can redeploy cash flow deleveraging our balance sheet while returning capital to shareholders through our existing dividend policy and share repurchase program."

HIGHLIGHTS - RECENT DEVELOPMENTS

Dividend of $0.05 per share of common stock

On August 13, 2015, the Board of Directors of Navios Acquisition declared a quarterly cash dividend for the second quarter of 2015 of $0.05 per share of common stock. The dividend is payable on September 24, 2015 to stockholders of record as of September 18, 2015.

Share repurchase program

Navios Acquisition has repurchased 526,390 shares for a total cost of approximately $2.0 million, under the $50.0 million share repurchase program.

Profit sharing

During the second quarter of 2015, Navios Acquisition benefited from the improved spot market and earned $8.6 million under its profit sharing arrangements. Profit sharing recognized for the six months ended June 30, 2015 was $16.2 million.

Vessels sold to Navios Midstream

On June 18, 2015, Navios Acquisition sold the C. Dream, a 2000-built VLCC of 298,570 dwt, and the Nave Celeste, a 2003-built VLCC of 298,717 dwt, to Navios Maritime Midstream Partners L.P. ("Navios Midstream") for a sale price of $100.0 million. The sale price consisted of $73.0 million cash consideration and the issuance of 1,592,920 Subordinated Series A units to Navios Acquisition.

In connection with the sale, Navios Acquisition (a) used $47.2 million of cash to repay bank debt and (b) replaced the two VLCCs with three product tankers as collateral under its First Priority Ship Mortgage Notes.

In conjunction with the transaction, Navios Midstream also issued 32,509 general partner units to Navios Acquisition for $0.6 million, in order for Navios Acquisition to maintain its 2% general partnership interest.

Time Charter Coverage

Navios Acquisition currently owns and operates 37 vessels, of which six are VLCCs, 27 are product tankers and four are chemical tankers.

As of August 13, 2015, Navios Acquisition had contracted 97.2% and 43.3% of its available days on a charter-out basis for 2015 and 2016, respectively, expecting to generate revenues of approximately to $241.7 million and $82.2 million, respectively. The average contractual daily charter-out rate for the fleet is expected to $19,301 and $14,815 for 2015 and 2016, respectively.

FINANCIAL HIGHLIGHTS

For the following results and the selected financial data presented herein, Navios Acquisition has compiled consolidated statement of operations for the three months and six months ended June 30, 2015 and 2014. The quarterly information for 2015 and 2014 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,
2015
(unaudited)
  Three Month
 Period ended
June 30,
2014
(unaudited)
    Six Month
Period ended
June 30,
2015
(unaudited)
  Six Month
Period ended
June 30,
2014
(unaudited)
 
Revenue   $ 80,408   $ 62,242     $ 159,019   $ 123,211  
EBITDA   $ 60,398   $ 32,610     $ 113,606   $ 54,168  
Adjusted EBITDA(1)   $ 55,289   $ 34,972     $ 109,153   $ 70,850  
Net income/ (loss)   $ 26,362   $ (2,804 )   $ 46,396   $ (15,622 )
Adjusted net income /(loss) (1)   $ 22,029   $ (442 )   $ 42,719   $ 1,060  
Net income/(loss) per share (basic)   $ 0.17   $ (0.02 )   $ 0.29   $ (0.11 )
Net income/(loss) per share (diluted)   $ 0.16   $ (0.02 )   $ 0.29   $ (0.11 )
Adjusted net income/(loss) per share (basic) (1)   $ 0.14   $ (0.00 )   $ 0.27   $ 0.00  
Adjusted net income/(loss) per share (diluted) (1)   $ 0.14   $ (0.00 )   $ 0.26   $ 0.00  
 
(1)
Adjusted EBITDA, Adjusted net income and Adjusted net income per share (basic and diluted) for the three month period ended June 30, 2015 in this document exclude stock-based compensation of $0.7 million and gain on sale of vessels of $5.8 million. Net income and Earnings per share have been further adjusted to exclude $0.8 million write off of deferred finance fees and debt prepayment expenses.

Adjusted EBITDA, Adjusted net loss and Adjusted net loss per share (basic and diluted) for the three month period ended June 30, 2014 in this document exclude stock-based compensation of $1.5 million, and loss on sale of vessel of $0.9 million.

Adjusted EBITDA, Adjusted net income and Adjusted net income per share (basic and diluted) for the six month period ended June 30, 2015 in this document exclude stock-based compensation of $1.3 million and gain on sale of vessels of $5.8 million. Net income and Earnings per share have been further adjusted to exclude $0.8 million write off of deferred finance fees and debt prepayment expenses.

Adjusted EBITDA, Adjusted net income and Adjusted net income per share (basic and diluted) for the six month period ended June 30, 2014 in this document exclude stock-based compensation of $2.9 million, impairment loss and loss on sale of vessel of $12.6 million and $1.2 million in connection with the change in fair value of other assets.
 

Adjusted EBITDA, Adjusted net income/(loss) and Adjusted net income/(loss) 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 Adjusted EBITDA). 

Three month periods ended June 30, 2015 and 2014

Revenue for the three month period ended June 30, 2015 increased by $18.2 million or 29.2% to $80.4 million, as compared to $62.2 million for the same period of 2014. The increase was mainly attributable to (i) the increase in revenue following the acquisition of eight vessels since April 2014 and (ii) the profit sharing increase by $8.2 million to $8.6 million recognized in the three month period ended June 30, 2015, as compared to $0.4 million for the same period in 2014. The increase was partially mitigated by $17.3 million due to the sale of five VLCCs in 2014 and two VLCCs in June 2015. Available days of the fleet increased to 3,523 days for the three month period ended June 30, 2015, as compared to 3,288 days for the three month period ended June 30, 2014. The Time Charter Equivalent Rate (the "TCE Rate") increased to $22,541 for the three month period ended June 30, 2015, from $18,508 for the three month period ended June 30, 2014.

Adjusted EBITDA for the three month period ended June 30, 2015 increased by $20.3 million to $55.3 million from $35.0 million in the same period of 2014. The increase in Adjusted EBITDA was due to: (i) a $18.2 million increase in revenue due to the acquisitions of the vessels described above; (ii) a $3.4 million increase in equity in net earnings of affiliated companies; and (iii) a $0.4 million decrease in time charter expenses. This increase was partially mitigated by: (a) a $0.5 million increase in management fees; (b) a $1.0 million increase in general and administrative expenses and (c) a $0.2 million increase in other expense, net.

Adjusted net income for the three month period ended June 30, 2015, amounted to $22.0 million, compared to an Adjusted net loss of $0.4 million for the three month period ended June 30, 2014. The increase in Adjusted net income by approximately $22.5 million was mainly due to: (i) an increase of $20.3 million in Adjusted EBITDA; (ii) a decrease of $2.1 million in depreciation and amortization; (iii) a decrease of $0.1 million in direct vessel expenses; and (iv) an increase of $0.1 million in interest income, partially offset by a $0.2 million increase in interest expense and finance cost, net.

Six month periods ended June 30, 2015 and 2014

Revenue for the six month period ended June 30, 2015 increased by $35.8 million or 29.1% to $159.0 million, as compared to $123.2 million for the same period of 2014. The increase was mainly attributable to (i) the increase in revenue following deliveries of 11 vessels during the period from January 2014 until June 30, 2015 and (ii) the profit sharing increase by $14.4 million to $16.2 million recognized in the six month period ended June 30, 2015, as compared to $1.8 million for the same period in 2014. The increase was partially mitigated by $35.7 million due to the sale of five VLCCs in 2014 and two VLCCs in June 2015. Available days of the fleet increased to 6,961 days for the six month period ended June 30, 2015, as compared to 6,367 days for the six month period ended June 30, 2014. The TCE Rate increased to $22,531 for the six month period ended June 30, 2015, from $19,009 for the six month period ended June 30, 2014.

Adjusted EBITDA for the six month period ended June 30, 2015 increased by approximately $38.3 million to $109.2 million from $70.9 million in the same period of 2014. The increase in Adjusted EBITDA was due to: (i) a $35.8 million increase in revenue due to the acquisitions of the vessels described above; and (ii) a $6.6 million increase in equity in net earnings of affiliated companies. This increase was partially mitigated by: (a) a $2.2 million increase in management fees; (b) a $1.3 million increase in general and administrative expenses and (c) a $0.5 million increase in other expense, net.

Adjusted net income for the six month period ended June 30, 2015, amounted to $42.7 million, compared to Adjusted net income of $1.1 million for the six month period ended June 30, 2014. The increase in Adjusted net income by approximately $41.7 million was due to: (i) an increase of approximately $38.3 million in Adjusted EBITDA; (ii) a decrease of $3.8 million in depreciation and amortization; (iii) a decrease of $0.5 million in direct vessel expenses; and (iv) an increase of $0.3 million in interest income, partially offset by a $1.3 million increase in interest expense and finance cost, net.

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 months ended June 30, 2015 and 2014. 

             
    Three month period ended June 30,     Six month period ended June 30,  
    2015     2014     2015     2014  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  
FLEET DATA                                
Available days(1)     3,523       3,288       6,961       6,367  
Operating days(2)     3,511       3,280       6,936       6,349  
Fleet utilization(3)     99.7 %     99.8 %     99.7 %     99.7 %
Vessels operating at period end     37       37       37       37  
AVERAGE DAILY RESULTS                                
TCE Rate per day(4)   $ 22,541     $ 18,508     $ 22,531     $ 19,009  
                                 
(1) Available days for the fleet represent the total calendar days the vessels were in Navios Acquisition's possession for the relevant period after subtracting off-hire days associated with scheduled repairs, drydockings 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. The shipping industry uses operating days to measure the aggregate number of days in a relevant period during which vessels actually generate revenues.
 
(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. 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, drydockings or special surveys.
 
(4) TCE Rate: Time Charter Equivalent Rate 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 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 today, Tuesday, August 18, 2015 at 8:30 am ET, at which time Navios Acquisition's senior management will provide highlights and commentary on earnings results for the second quarter and the six month period ended June 30, 2015.

US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 7531 8909

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: +1.800.585.8367
International Replay Dial In: +1.404.537.3406
Conference ID: 7531 8909

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 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 our continued ability to enter into long-term time charters for our vessels, fluctuations in charter rates for tanker vessels, our ability to maximize the use of, or changes in demand for, our vessels, changes in the demand for crude oil, the loss of any customer or charter or vessel, the aging of our fleet and resultant increases in operations costs, changes in the availability and costs of funding due to conditions in the bank market, capital markets and other factors, 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, general domestic and international political conditions, 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.

   
EXHIBIT I  
   
NAVIOS MARITIME ACQUISITION CORPORATION  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(Expressed in thousands of U.S. Dollars except share data)  
             
    June 30,
2015
(unaudited)
    December 31,
2014
(unaudited)
 
ASSETS                
Current assets                
Cash and cash equivalents   $ 73,797     $ 54,493  
Restricted cash     6,849       6,669  
Accounts receivable, net     21,712       18,273  
Due from related parties     4,221       1,361  
Prepaid expenses and other current assets     7,344       8,732  
Total current assets     113,923       89,528  
                 
                 
Vessels, net     1,335,093       1,375,931  
Deposits for vessels acquisitions     --       42,276  
Goodwill     1,579       1,579  
Intangible assets-other than goodwill     --       3,300  
Other long-term assets     480       690  
Deferred dry dock and special survey costs, net     4,563       5,312  
Investment in affiliates     183,922       151,966  
Investment in available-for-sale securities     19,274       15,099  
Loan receivable from affiliates     11,464       7,791  
Total non-current assets     1,556,375       1,603,944  
Total assets   $ 1,670,298     $ 1,693,472  
                 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities                
Accounts payable   $ 2,233     $ 1,599  
Dividend payable     8,035       7,967  
Accrued expenses     10,733       10,261  
Due to related parties, short term     303       18,489  
Deferred revenue     2,852       1,400  
Current portion of long-term debt, net of deferred finance costs     30,507       31,882  
Total current liabilities     54,663       71,598  
                 
Long-term debt, net of current portion, premium and net of deferred finance costs     1,075,261       1,110,120  
Due to related parties, long term     --       9,625  
Unfavorable lease terms     --       2,878  
Deferred gain on sale of assets     8,971       --  
Total non-current liabilities     1,084,232       1,122,623  
Total liabilities   $ 1,138,895     $ 1,194,221  
                 
                 
Commitments and contingencies     --       --  
Series D Convertible Preferred Stock, 475 and 1,200 shares issued and outstanding with $4,750 and $12,000 redemption amount as of June 30, 2015 and December 31, 2014, respectively     4,750       12,000  
Puttable common stock 375,000 and 0 shares issued and outstanding with $3,750 and $0 redemption amount as of June 30, 2015 and December 31, 2014     3,750       --  
Stockholders' equity                
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; 4,378 and 4,540 issued and outstanding as of June 30, 2015 and December 31, 2014, respectively     --       --  
Common stock, $0.0001 par value; 250,000,000 shares authorized; 152,104,742 and 151,664,942 issued and outstanding as of June 30, 2015 and December 31, 2014, respectively     15       15  
Additional paid-in capital     542,205       557,125  
Accumulated deficit     (19,951 )     (66,347 )
Other comprehensive income/ (loss)     634       (3,542 )
Total stockholders' equity     522,903       487,251  
Total liabilities and stockholders' equity   $ 1,670,298     $ 1,693,472  
                 
                 
   
NAVIOS MARITIME ACQUISITION CORPORATION  
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/ (LOSS)  
(Expressed in thousands of U.S. dollars- except share and per share data)  
                         
    For the Three     For the Three     For the Six     For the Six  
    Months     Months     Months     Months  
    Ended     Ended     Ended     Ended  
    June 30, 2015     June 30, 2014     June 30, 2015     June 30, 2014  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Revenue   $ 80,408     $ 62,242     $ 159,019     $ 123,211  
Time charter and voyage expenses     (996 )     (1,392 )     (2,186 )     (2,178 )
Direct vessel expenses     (348 )     (477 )     (697 )     (1,213 )
Management fees     (24,293 )     (23,787 )     (48,335 )     (46,087 )
General and administrative expenses     (3,903 )     (3,726 )     (7,068 )     (7,312 )
Depreciation and amortization     (14,880 )     (16,959 )     (29,771 )     (33,597 )
Gain/ (loss) on sale of vessels     5,771       (904 )     5,771       (904 )
Impairment loss     --       --       --       (11,690 )
Interest income     302       169       573       279  
Interest expenses and finance cost, net     (19,110 )     (18,147 )     (37,315 )     (35,259 )
Change in fair value of other assets     --       --       --       (1,188 )
Equity in net earnings of affiliated companies     3,651       262       7,089       453  
Other expense, net     (240 )     (85 )     (684 )     (137 )
Net income/ (loss)   $ 26,362     $ (2,804 )   $ 46,396     $ (15,622 )
Other comprehensive income                                
Unrealized holding income on investments in- available-for-sale-securities     1,901       --       4,176       --  
Other comprehensive income     1,901       --       4,176       --  
Total comprehensive income     28,263       --       50,572       --  
Net income/ (loss)   $ 26,362     $ (2,804 )   $ 46,396     $ (15,622 )
                                 
Net income/ (loss) attributable to common shareholders, basic   $ 24,933     $ (2,953 )   $ 43,770     $ (15,340 )
Net income/ (loss) attributable to common shareholders, diluted     25,091     $ (2,953 )     44,163     $ (15,340 )
Net income/ (loss) per share, basic   $ 0.17     $ (0.02 )   $ 0.29     $ (0.11 )
                                 
Weighted average number of shares, basic     150,580,595       149,564,942       150,455,682       145,352,511  
                                 
Net income/ (loss) per share, diluted   $ 0.16     $ (0.02 )   $ 0.29     $ (0.11 )
                                 
Weighted average number of shares, diluted     154,197,621       149,564,942       154,340,946       145,352,511  
                                 
                                 
   
NAVIOS MARITIME ACQUISITION CORPORATION  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
(Expressed in thousands of U.S. dollars)  
             
    For the Six Months Ended June 30, 2015
(unaudited)
    For the Six Months Ended June 30, 2014
(unaudited)
 
Operating Activities                
Net income/ (loss)   $ 46,396     $ (15,622 )
Adjustments to reconcile net income/ (loss) to net cash provided by operating activities:                
Depreciation and amortization     29,771       33,597  
Amortization and write-off of deferred finance fees and bond premium     1,993       1,496  
Amortization of deferred dry dock and special survey costs     697       1,213  
Stock based compensation     1,318       2,900  
(Gain)/ loss on sale of vessels     (5,771 )     904  
Impairment loss     --       11,690  
Change in fair value of other assets     --       1,188  
Earnings in affiliates, net of dividends received     (1,159 )     --  
Changes in operating assets and liabilities:                
Decrease/ (increase) in prepaid expenses and other current assets     1,388       (1,932 )
(Increase) in accounts receivable     (3,143 )     (3,061 )
(Increase)/ decrease in restricted cash     (50 )     232  
Decrease in other long term assets     210       2,297  
Increase in accounts payable     726       628  
Increase/ (decrease) in accrued expenses     638       (591 )
Payments for dry dock and special survey costs     --       (609 )
(Decrease) in due from related parties     (2,860 )     --  
(Decrease)/ increase in due to related parties     (17,462 )     4,014  
Increase/ (decrease) in deferred revenue     1,452       (315 )
Net cash provided by operating activities   $ 54,144     $ 38,029  
                 
Investing Activities                
Acquisition of vessels     (29,397 )     (203,493 )
Deposits for vessel acquisitions     --       (21,104 )
Dividends received from affiliates     757       --  
Net proceeds from sale of vessels     71,224       18,315  
Investment in affiliates     (4,826 )        
Loan receivable from affiliates     (3,289 )     (2,831 )
Net cash provided by/ (used in) investing activities   $ 34,469     $ (209,113 )
                 
Financing Activities                
Loan proceeds, net of deferred finance costs     25,954       53,113  
Loan repayments     (64,198 )     (18,331 )
Dividend paid     (16,170 )     (15,520 )
Payment to related party     (11,265 )     --  
Decrease in restricted cash     (130 )     16,390  
Net proceeds from equity offering     --       54,287  
Proceeds from issuance of ship mortgage and senior notes, net of debt issuance costs and premium     --       59,598  
Redemption of convertible shares     (3,500 )     --  
Net cash (used in)/ provided by financing activities   $ (69,309 )   $ 149,537  
                 
Net increase/ (decrease) in cash and cash equivalents     19,304       (21,547 )
Cash and cash equivalents, beginning of year     54,493       82,835  
Cash and cash equivalents, end of year   $ 73,797     $ 61,288  
                 
                 
   
EXHIBIT II  
   
Reconciliation of EBITDA and Adjusted EBITDA to Net Cash provided by Operating Activities  
(Expressed in thousands of U.S. dollars)  
                         
    Three Month     Three Month     Six Month     Six Month  
    Period     Period     Period     Period  
    Ended     Ended     Ended     Ended  
    June 30,
2015
    June 30,
2014
    June 30,
2015
    June 30,
2014
 
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Net cash provided by operating activities   $ 20,034     $ 9,166     $ 54,144     $ 38,029  
Net (decrease)/increase in operating assets     (677 )     (1,556 )     4,455       3,073  
Net decrease/(increase) in operating liabilities     20,666       10,165       14,646       (3,736 )
Net interest cost     18,808       17,978       36,742       34,980  
Amortization of deferred finance costs     (1,263 )     (781 )     (1,993 )     (1,496 )
Earnings in affiliates, net of dividends received     (2,279 )     --       1,159       --  
Share based compensation     (662 )     (1,458 )     (1,318 )     (2,900 )
Gain/ (loss) on sale of vessels     5,771       (904 )     5,771       (904 )
Impairment loss     --       --       --       (11,690 )
Change in fair value of other assets     --       --       --       (1,188 )
EBITDA(1)     60,398       32,610       113,606       54,168  
Share based compensation     662       1,458       1,318       2,900  
(Gain)/ loss on sale of vessels     (5,771 )     904       (5,771 )     904  
Impairment loss     --       --       --       11,690  
Change in fair value of other assets     --       --       --       1,188  
Adjusted EBITDA(1)   $ 55,289     $ 34,972     $ 109,153     $ 70,850  
                                 
                                 
                         
(1)   Three Month
Period
Ended
June 30,
2015
    Three Month
Period
Ended
June 30,
2014
    Six Month
Period
Ended
June 30,
2015
    Six Month
Period
Ended
June 30,
2014
 
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Net cash provided by operating activities   $ 20,034     $ 9,166     $ 54,144     $ 38,029  
Net cash provided by/ (used in) investing activities   $ 61,902     $ (50,174 )   $ 34,469     $ (209,113 )
Net cash (used in)/ provided by financing activities   $ (65,742 )   $ (15,705 )   $ (69,309 )   $ 149,537  
                                 

Disclosure of Non-GAAP Financial Measures

EBITDA and Adjusted EBITDA 

EBITDA for the three and six month periods ended June 30, 2015 in this document represents net income plus interest and finance costs plus depreciation and amortization and income taxes.

Adjusted EBITDA for the three and six month periods ended June 30, 2015 in this document represents, net income plus interest expense and finance cost plus depreciation and amortization less interest income, unless otherwise stated and excludes certain items as described under "Financial Highlights".

EBITDA and Adjusted EBITDA are presented because Navios Acquisition believes that EBITDA and Adjusted EBITDA are a 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. EBITDA and Adjusted EBITDA are "non-GAAP financial measures" 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.

While EBITDA and Adjusted EBITDA are frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA and Adjusted EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.

 
EXHIBIT III
Vessels   Type   Built/Delivery
Date
  DWT
Owned Vessels            
Nave Constellation   Chemical Tanker   2013   45,281
Nave Universe   Chemical Tanker   2013   45,513
Nave Polaris   Chemical Tanker   2011   25,145
Nave Cosmos   Chemical Tanker   2010   25,130
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 Lucida   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
Nave Buena Suerte   VLCC   2011   297,491
Nave Quasar   VLCC   2010   297,376
Nave Synergy   VLCC   2010   299,973
Nave Galactic   VLCC   2009   297,168
Nave Neutrino   VLCC   2003   298,287
Nave Electron   VLCC   2002   305,178
             

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