- Revenue
• $58.5 million for Q2 2017
• $122.9 million for the six months 2017 - Adjusted EBITDA
• $27.1 million for Q2 2017
• $64.5 million for the six months 2017 - Quarterly dividend of $0.05 per share – consistently paid since 2010
MONACO, Aug. 10, 2017 (GLOBE NEWSWIRE) -- 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, 2017.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition stated, “For the second quarter of 2017, we reported Revenue of $58.5 million and Adjusted EBITDA of $27.1 million. We also declared a dividend of $0.05 per share for the quarter, resulting in a dividend yield of about 14.0%.”
Angeliki Frangou continued, “The recent volatility in oil price and the continued uncertainty concerning commodity pricing have affected oil transportation. However, our chartering strategy of seeking long-term employment has insulated us somewhat. We have earned above-market charter rates when spot rates were contracting and period employment was unavailable. In the first six months of 2017, our average charter rate was estimated about 51% higher than the market average, translating into about $39.1 million of additional revenue.“
HIGHLIGHTS — RECENT DEVELOPMENTS
Dividend of $0.05 per share of common stock
On August 9, 2017, the Board of Directors of Navios Acquisition declared a quarterly cash dividend for the second quarter of 2017 of $0.05 per share of common stock. The dividend is payable on September 14, 2017 to stockholders of record as of September 7, 2017. 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.
Time charter coverage and commitments
Navios Acquisition currently owns 36 vessels, of which eight are VLCCs, 26 are product tankers and two are chemical tankers.
As of August 10, 2017, Navios Acquisition had contracted 94.0% of its available days on a charter-out basis for 2017, expecting to generate revenues of approximately $194.5 million. The average contractual net daily charter-out rate for the fleet is expected to be $17,660.
FINANCIAL HIGHLIGHTS
For the following results and the selected financial data presented herein, Navios Acquisition has compiled its consolidated statement of income for the three months and six months ended June 30, 2017 and 2016. The quarterly information for 2017 and 2016 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, 2017 (unaudited) | Three Month Period ended June 30, 2016 (unaudited) | Six Month Period ended June 30, 2017 (unaudited) | Six Month Period ended June 30, 2016 (unaudited) | |||||||||||||||||
| Revenue | $ | 58,458 | $ | 74,495 | $ | 122,940 | $ | 154,914 | |||||||||||||
| Adjusted EBITDA | $ | 27,080 | (1) | $ | 45,450 | (2) | $ | 64,461 | (1) | $ | 101,200 | (2) | |||||||||
| Net (loss)/ income | $ | (64,417 | ) | $ | 12,184 | $ | (58,802 | ) | $ | 35,954 | |||||||||||
| Adjusted net (loss)/ income (1) | $ | (4,617 | ) (1) | $ | 12,448 | (2) | $ | 998 | (1) | $ | 34,414 | (2) | |||||||||
| (Loss)/ income per share (basic) | $ | (0.41 | ) | $ | 0.08 | $ | (0.37 | ) | $ | 0.23 | |||||||||||
| Adjusted (loss)/earnings per share (basic) (1) | $ | (0.03 | ) | $ | 0.08 | $ | 0.01 | $ | 0.22 | ||||||||||||
| (1) Adjusted EBITDA, Adjusted net loss and Adjusted loss per share (basic) for the three and six month period ended June 30, 2017 in this document exclude $59.1 million of non-cash impairment loss on equity investment in Navios Maritime Midstream Partners L.P. (“Navios Midstream”). | |||||||||||||||||||||||||||||||||||
| Furthermore, Adjusted net loss and Adjusted net loss per share (basic) for the three and six month period June 30, 2017 further exclude a $0.7 million write-off of deferred finance cost. | |||||||||||||||||||||||||||||||||||
| (2) Adjusted EBITDA, Adjusted net income and Adjusted earnings per share (basic) for the three month period ended June 30, 2016 in this document exclude non-cash stock-based compensation of $0.3 million. | |||||||||||||||||||||||||||||||||||
| Adjusted EBITDA, Adjusted net income and Adjusted earnings per share (basic) for the six month period ended June 30, 2016 in this document exclude gain on sale of vessel of $2.3 million and non-cash stock-based compensation of $0.5 million. Adjusted net income and Adjusted earnings per share (basic) further exclude a $0.2 million write-off of deferred finance cost. |
Adjusted EBITDA is a non-GAAP financial measure 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, 2017 and 2016
Revenue for the three month period ended June 30, 2017 decreased by $16.0 million, or 21.5%, to $58.5 million, as compared to $74.5 million for the same period of 2016. The decrease was mainly attributable to the: (i) decrease in the market rates during the second quarter ended June 30, 2017, as compared to the same period in 2016; and (ii) decrease in revenue by $3.3 million due to the sale of two chemical tankers in the fourth quarter of 2016. Available days of the fleet decreased to 3,256 days for the three month period ended June 30, 2017, as compared to 3,437 days for the three month period ended June 30, 2016. The time charter equivalent rate, or TCE Rate, decreased to $17,491 for the three month period ended June 30, 2017, from $21,380 for the three month period ended June 30, 2016.
On June 30, 2017, the Company recognized a $59.1 million non-cash impairment loss on its equity investment in Navios Midstream.
Adjusted EBITDA for the three month period ended June 30, 2017 excludes the impairment loss of $59.1 million in equity investment in Navios Midstream. Adjusted EBITDA for the three month period ended June 30, 2017 decreased by approximately $18.4 million to $27.1 million as compared to $45.5 million for the same period of 2016. The decrease in Adjusted EBITDA was mainly due to a: (a) $16.0 million decrease in revenue, as described above; (b) $4.6 million increase in time charter expenses mainly due to the $4.1 million accrued backstop commitment to Navios Midstream; and (c) $2.4 million decrease in equity/ (loss) in net earnings of affiliated companies, partially mitigated by a; (i) $2.0 million decrease in general and administrative expenses (excluding share-based compensation expense); (ii) $1.2 million decrease in other income/ (expense), net; (iii) $0.7 million decrease in direct vessel expenses (excluding amortization of dry dock and special survey costs); and (iv) $0.6 million decrease in management fees, mainly due to the sale of two chemical tankers in the fourth quarter of 2016, as discussed above.
Net loss for the three month period ended June 30, 2017 was adjusted to exclude the $59.1 million impairment loss, described above, and $0.7 million write-off of deferred finance cost. Adjusted net loss for the three month period ended June 30, 2017 decreased by $17.1 million to $4.6 million loss as compared to $12.4 million income for the same period of 2016. The decrease was due to : (a) a $18.4 million decrease in Adjusted EBITDA; (b) a $0.3 million increase in direct vessel expenses; and (c) a $0.2 million increase in interest expense and finance cost partially mitigated by a: (i) $1.7 million increase in interest income; and (ii) $0.1 million decrease in depreciation and amortization.
Six month periods ended June 30, 2017 and 2016
Revenue for the six month period ended June 30, 2017 decreased by $32.0 million, or 20.6%, to $122.9 million, as compared to $154.9 million for the same period of 2016. The decrease was mainly attributable to the: (i) decrease in the market rates during the six month period ended June 30, 2017, as compared to the same period in 2016; and (ii) decrease in revenue by $7.0 million due to the sale of one MR2 product tanker in January 2016 and two chemical tankers in the fourth quarter of 2016. Available days of the fleet decreased to 6,463 days for the six month period ended June 30, 2017, as compared to 6,914 days for the six month period ended June 30, 2016. The TCE Rate decreased to $18,475 for the six month period ended June 30, 2017, from $22,055 for the six month period ended June 30, 2016.
Adjusted EBITDA for the six month period ended June 30, 2017, adjusted to exclude the $59.1 million impairment loss, as discussed above and decreased by approximately $36.7 million to $64.5 million as compared to $101.2 million for the same period of 2016. The decrease in Adjusted EBITDA was mainly due to a: (a) $32.0 million decrease in revenue, as described above; (b) $6.3 million increase in time charter expenses mainly due to the $5.2 million accrued backstop commitment to Navios Midstream; and (c) $4.5 million decrease in equity/ (loss) in net earnings of affiliated companies, partially mitigated by a; (i) $2.5 million decrease in general and administrative expenses (excluding share-based compensation expense); (ii) $1.4 million decrease in management fees, mainly due to the sale of one MR2 product tanker in January 2016 and two chemical tankers in the fourth quarter of 2016; (iii) $1.4 million decrease in other expense, net; and (iv) $0.7 million decrease in direct vessel expenses (excluding amortization of dry dock and special survey costs).
Net income for the six month period ended June 30, 2017 was adjusted to exclude the $59.1 million impairment loss, described above, and $0.7 million write-off of deferred finance cost. Adjusted net income for the six month period ended June 30, 2017 decreased by $33.4 million to $1.0 million as compared to $34.4 million for the same period of 2016. The decrease was due to a: (a) $36.7 million decrease in Adjusted EBITDA; (b) $0.5 million increase in direct vessel expenses; and (c) $0.1 million increase in interest expense and finance cost; partially mitigated by a: (i) $3.2 million increase in interest income; and (ii) $0.7 million decrease in depreciation and amortization.
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, 2017 and 2016.
| Three month period ended June 30, | Six month period ended June 30, | |||||||||||||||
| 2017 (unaudited) | 2016 (unaudited) | 2017 (unaudited) | 2016 (unaudited) | |||||||||||||
| FLEET DATA | ||||||||||||||||
| Available days(1) | 3,256 | 3,437 | 6,463 | 6,914 | ||||||||||||
| Operating days(2) | 3,253 | 3,428 | 6,455 | 6,899 | ||||||||||||
| Fleet utilization(3) | 99.9 | % | 99.8 | % | 99.9 | % | 99.8 | % | ||||||||
| Vessels operating at period end | 36 | 38 | 36 | 38 | ||||||||||||
| AVERAGE DAILY RESULTS | ||||||||||||||||
| Time charter equivalent rate per day(4) | $ | 17,491 | $ | 21,380 | $ | 18,475 | $ | 22,055 | ||||||||
Navios Acquisition believes that the important measures for analyzing trends in its results of operations 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. 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, dry dockings or special surveys. | ||
| (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 today, Thursday, August 10, 2017 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, 2017.
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 3486 7567
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: 3486 7567
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, 2017 cash flow generation 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 "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 time charters. 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 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, 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; risks associated with operations outside the United States; and other factors listed from time to time in the Navios Acquisition's filings with the U.S. Securities and Exchange Commission, 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.
| EXHIBIT I | ||||||||
| NAVIOS MARITIME ACQUISITION CORPORATION | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Expressed in thousands of U.S. dollars- except share data) | ||||||||
| June 30, 2017 (unaudited) | December 31, 2016 (unaudited) | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 51,544 | $ | 49,292 | ||||
| Restricted cash | 5,248 | 7,366 | ||||||
| Accounts receivable, net | 11,449 | 20,933 | ||||||
| Due from related parties, short-term | 19,000 | 25,047 | ||||||
| Prepaid expenses and other current assets | 4,124 | 4,644 | ||||||
| Total current assets | 91,365 | 107,282 | ||||||
| Vessels, net | 1,278,483 | 1,306,923 | ||||||
| Goodwill | 1,579 | 1,579 | ||||||
| Other long-term assets | 900 | 900 | ||||||
| Deferred dry dock and special survey costs, net | 13,273 | 10,172 | ||||||
| Investment in affiliates | 129,286 | 196,695 | ||||||
| Due from related parties, long-term | 106,509 | 80,068 | ||||||
| Total non-current assets | 1,530,030 | 1,596,337 | ||||||
| Total assets | $ | 1,621,395 | $ | 1,703,619 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 4,422 | $ | 4,855 | ||||
| Accrued expenses | 11,601 | 11,047 | ||||||
| Due to related parties, short-term | 5,937 | — | ||||||
| Deferred revenue | 8,451 | 8,519 | ||||||
| Current portion of long-term debt, net of deferred finance costs | 38,814 | 55,000 | ||||||
| Total current liabilities | 69,225 | 79,421 | ||||||
| Long-term debt, net of current portion, premium and net of deferred finance costs | 1,045,885 | 1,040,938 | ||||||
| Deferred gain on sale of assets | 7,218 | 7,829 | ||||||
| Total non-current liabilities | 1,053,103 | 1,048,767 | ||||||
| Total liabilities | $ | 1,122,328 | $ | 1,128,188 | ||||
| Commitments and contingencies | — | — | ||||||
| Puttable common stock 75,000 and 250,000 shares issued and outstanding with $750 and $2,500 redemption amount as of June 30, 2017 and December 31, 2016, respectively | 750 | 2,500 | ||||||
| Total stockholders’ equity | 498,317 | 572,931 | ||||||
| Total liabilities and stockholders’ equity | $ | 1,621,395 | $ | 1,703,619 | ||||
| NAVIOS MARITIME ACQUISITION CORPORATION | ||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
| (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, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | |||||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||
| Revenue | $ | 58,458 | $ | 74,495 | $ | 122,940 | $ | 154,914 | ||||||||||||
| Time charter and voyage expenses | (5,585 | ) | (1,017 | ) | (8,763 | ) | (2,438 | ) | ||||||||||||
| Direct vessel expenses | (934 | ) | (1,405 | ) | (1,827 | ) | (2,049 | ) | ||||||||||||
| Management fees (entirely through related party transactions) | (23,678 | ) | (24,318 | ) | (47,096 | ) | (48,504 | ) | ||||||||||||
| General and administrative expenses | (3,693 | ) | (5,981 | ) | (6,456 | ) | (9,510 | ) | ||||||||||||
| Depreciation and amortization | (14,220 | ) | (14,294 | ) | (28,440 | ) | (29,177 | ) | ||||||||||||
| Gain on sale of vessel | — | — | — | 2,282 | ||||||||||||||||
| Interest income | 2,546 | 880 | 4,740 | 1,534 | ||||||||||||||||
| Interest expense and finance cost | (19,785 | ) | (18,913 | ) | (38,632 | ) | (38,038 | ) | ||||||||||||
| Equity/ (loss) in net earnings of affiliated companies | (57,728 | ) | 3,731 | (54,960 | ) | 8,622 | ||||||||||||||
| Other income/ (expense), net | 202 | (994 | ) | (308 | ) | (1,682 | ) | |||||||||||||
| Net (loss)/ income | $ | (64,417 | ) | $ | 12,184 | $ | (58,802 | ) | $ | 35,954 | ||||||||||
| Net (loss)/ income per share, basic and diluted | $ | (0.41 | ) | $ | 0.08 | $ | (0.37 | ) | $ | 0.23 | ||||||||||
| Weighted average number of shares, basic | 150,436,836 | 150,084,084 | 150,468,625 | 149,668,699 | ||||||||||||||||
| Weighted average number of shares, diluted | 150,436,836 | 150,784,089 | 150,468,625 | 150,836,836 | ||||||||||||||||
| NAVIOS MARITIME ACQUISITION CORPORATION | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
| (Expressed in thousands of U.S. dollars) | ||||||||||
| For the Six Months Ended June 30, 2017 (unaudited) | For the Six Months Ended June 30, 2016 (unaudited) | |||||||||
| Operating Activities | ||||||||||
| Net (loss)/ income | $ | (58,802 | ) | $ | 35,954 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
| Depreciation and amortization | 28,440 | 29,177 | ||||||||
| Amortization and write-off of deferred finance fees and bond premium | 2,579 | 1,864 | ||||||||
| Amortization of dry dock and special survey costs | 1,827 | 1,319 | ||||||||
| Stock based compensation | — | 528 | ||||||||
| Gain on sale of vessel | — | (2,282 | ) | |||||||
| Equity/ (loss) in net earnings of affiliates, net of dividends received | 58,413 | (833 | ) | |||||||
| Changes in operating assets and liabilities: | ||||||||||
| Decrease in prepaid expenses and other current assets | 20 | 1,404 | ||||||||
| Decrease/ (increase) in accounts receivable | 9,484 | (1,737 | ) | |||||||
| Decrease/ (increase) in due from related parties, short-term | 6,047 | (3,824 | ) | |||||||
| Decrease/ (increase) in restricted cash | 33 | (64 | ) | |||||||
| Increase in other long term assets | — | (3,930 | ) | |||||||
| Increase in due from related parties, long-term | (15,979 | ) | (6,430 | ) | ||||||
| Decrease in accounts payable | (433 | ) | (387 | ) | ||||||
| Increase in accrued expenses | 554 | 3,409 | ||||||||
| Payments for dry dock and special survey costs | (4,928 | ) | (2,324 | ) | ||||||
| Increase in due to related parties, short-term | 5,937 | — | ||||||||
| Decrease in deferred revenue | (53 | ) | (1,607 | ) | ||||||
| Net cash provided by operating activities | $ | 33,139 | $ | 50,237 | ||||||
| Investing Activities | ||||||||||
| Loans receivable from affiliates | (9,061 | ) | (4,275 | ) | ||||||
| Dividends received from affiliates | 7,197 | 2,853 | ||||||||
| Investment in affiliates | (84 | ) | — | |||||||
| Net cash proceeds from sale of vessel | — | 18,449 | ||||||||
| Net cash (used in)/ provided by investing activities | $ | (1,948 | ) | $ | 17,027 | |||||
| Financing Activities | ||||||||||
| Loan proceeds, net of deferred finance costs | 49,764 | — | ||||||||
| Loan repayments | (63,226 | ) | (34,682 | ) | ||||||
| Dividend paid | (15,812 | ) | (15,851 | ) | ||||||
| Decrease in restricted cash | 2,085 | — | ||||||||
| Redemption of convertible shares and puttable common stock | (1,750 | ) | (2,000 | ) | ||||||
| Net cash used in financing activities | $ | (28,939 | ) | $ | (52,533 | ) | ||||
| Net increase in cash and cash equivalents | 2,252 | 14,731 | ||||||||
| Cash and cash equivalents, beginning of period | 49,292 | 54,805 | ||||||||
| Cash and cash equivalents, end of period | $ | 51,544 | $ | 69,536 | ||||||
| EXHIBIT II | ||||||||||||||||
| Reconciliation of Adjusted EBITDA to Net Cash from Operating Activities | ||||||||||||||||
| Three Month Period Ended June 30, 2017 (unaudited) | Three Month Period Ended June 30, 2016 (unaudited) | Six Month Period Ended June 30, 2017 (unaudited) | Six Month Period Ended June 30, 2016 (unaudited) | |||||||||||||
| Expressed in thousands of U.S. dollars | ||||||||||||||||
| Net cash provided by operating activities | $ | 5,554 | $ | 24,176 | $ | 33,139 | $ | 50,237 | ||||||||
| Net (decrease)/ increase in operating assets | (4,590 | ) | (7,378 | ) | 395 | 14,581 | ||||||||||
| Net decrease/ (increase) in operating liabilities | 8,136 | 8,774 | (6,005 | ) | (1,415 | ) | ||||||||||
| Net interest cost | 17,239 | 18,033 | 33,892 | 36,504 | ||||||||||||
| Amortization and write-off of deferred finance costs and bond premium | (1,663 | ) | (822 | ) | (2,579 | ) | (1,864 | ) | ||||||||
| Equity/ (loss) in net earnings of affiliates, net of dividends received | (58,721 | ) | 343 | (58,413 | ) | 833 | ||||||||||
| Payments for dry dock and special survey costs | 2,021 | 2,324 | 4,928 | 2,324 | ||||||||||||
| Other- than- temporary- impairment loss on equity investment | 59,104 | — | 59,104 | — | ||||||||||||
| Adjusted EBITDA | $ | 27,080 | $ | 45,450 | $ | 64,461 | $ | 101,200 | ||||||||
| Three Month Period Ended June 30, 2017 (unaudited) | Three Month Period Ended June 30, 2016 (unaudited) | Six Month Period Ended June 30, 2017 (unaudited) | Six Month Period Ended June 30, 2016 (unaudited) | |||||||||||||
| Net cash provided by operating activities | $ | 5,554 | $ | 24,176 | $ | 33,139 | $ | 50,237 | ||||||||
| Net cash provided by/ (used in) investing activities | $ | 526 | $ | 1,935 | $ | (1,948 | ) | $ | 17,027 | |||||||
| Net cash used in financing activities | $ | (13,509 | ) | $ | (21,216 | ) | $ | (28,939 | ) | $ | (52,533 | ) | ||||
Disclosure of Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA
EBITDA is a non-U.S. GAAP financial measure and should not be used in isolation or as substitution for Navios Acquisition’s results calculated in accordance with U.S. GAAP.
EBITDA represents net (loss)/income before interest and finance costs, before depreciation and amortization and before income taxes. Adjusted EBITDA in this document represents EBITDA before stock-based compensation, gain on sale of vessel and other- than- temporary- impairment loss on equity investment. We use Adjusted EBITDA as liquidity measure and reconcile Adjusted EBITDA to net cash provided by/ (used in) operating activities, the most comparable U.S. GAAP liquidity measure. Adjusted EBITDA in this document 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 cost and other related expenses; (v) equity in net earnings of affiliated companies, net of dividends received; (vi) payments for dry dock and special survey costs; and (vii) impairment charges. Navios Acquisition believes that Adjusted EBITDA is 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 Adjusted EBITDA is 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. Adjusted EBITDA has limitations as 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) Adjusted EBITDA does 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. Adjusted EBITDA does not reflect any cash requirements for such capital expenditures. Because of these limitations, Adjusted EBITDA should not be considered as a principal indicator of Navios Acquisition’s performance. Furthermore, our calculation of Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.
| EXHIBIT III | |||||||||
| Year Built/Delivery | |||||||||
| Vessels | Type | Date | DWT | ||||||
| Owned Vessels | |||||||||
| 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 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 Spherical | VLCC | 2009 | 297,188 | ||||||
| Nave Photon | VLCC | 2008 | 297,395 | ||||||
| Nave Neutrino | VLCC | 2003 | 298,287 | ||||||
| Nave Electron | VLCC | 2002 | 305,178 | ||||||