Navios Maritime Acquisition Corporation Reports Financial Results for the First Quarter ended March 31, 2012

Marketwired

PIRAEUS, GREECE--(Marketwire -05/08/12)- Navios Maritime Acquisition Corporation (NNA - News)

  • Quarterly dividend of $0.05 per share
  • Quarterly Revenue Increased by 42.1% to $35.7 million
  • Quarterly EBITDA Increased by 47.6% to $23.7 million
  • 89.4% Fleet Coverage for 2012

Navios Maritime Acquisition Corporation ("Navios Acquisition") (NNA - News), an owner and operator of tanker vessels, today reported its financial results for the first quarter ended March 31, 2012.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition stated, "Since 2010, we have built a diverse fleet of 29 tanker vessels with an average age of about six years. As a sign of continued confidence in our operations, we announced a quarterly dividend of $0.05 per share, representing a yield of about 7% to shareholders."

Angeliki Frangou continued, "I believe that Navios Acquisition is conservatively positioned in the current market. The Company's entire operating cost is borne by the 15 vessels in the water for 2012. We also enjoy a low cash-flow break even for 2013. Even if there is no recovery in the market, we can generate substantial additional cash flow in the current rate environment. Given the Company's 50% increase in available days in each of 2012 and 2013, accompanied by profit sharing on almost half of our fleet, any increase in charter rates will be amplified in our results."

HIGHLIGHTS - RECENT DEVELOPMENTS

Dividend of $0.05 per Share of Common Stock

On May 4, 2012, the Board of Directors of Navios Acquisition declared a quarterly cash dividend for the first quarter of 2012 of $0.05 per share of common stock. The dividend is payable on July 3, 2012 to stockholders of record as of June 20, 2012. 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, restrictions under its credit agreements and other debt obligations and such other factors as the Board may deem advisable.

Management Fees Fixed at Current Levels for Two Additional Years

Navios Acquisition amended its existing Management Agreement with Navios Tankers Management Inc. (the "Manager"), a subsidiary of Navios Maritime Holdings Inc. ("Navios Holdings"), to fix the fees for ship management services of its owned fleet at current levels for two additional years, through May 28, 2014. The management fees are: (a) $7,000 daily rate per LR1 product tanker vessel; (b) $6,000 daily rate per MR 2 product and chemical tanker vessel; and (c) $10,000 daily rate per VLCC tanker vessel.

Time Charter Coverage
Navios Acquisition has contracted 89.4%, 62.3% and 54.0% of its available days on a charter-out basis for 2012, 2013 and 2014, respectively, equivalent to $145.8 million, $152.2 million and $138.9 million of revenue, respectively. The average contractual daily charter-out rate for the fleet is $26,747, $26,059, and $25,839 for 2012, 2013 and 2014, respectively.

FINANCIAL HIGHLIGHTS

For the following results and the selected financial data presented herein, Navios Acquisition has compiled consolidated statement of income for the three month periods ended March 31, 2012 and 2011. The quarterly information for 2012 and 2011 was derived from the unaudited condensed consolidated financial statements for the respective periods.

 


Three Month Three Month
Period ended Period ended
March 31, March 31,
2012 2011
(Expressed in thousands of U.S. dollars) (unaudited) (unaudited)
Revenue $ 35,717 $ 25,130
Net loss $ (788) $ (406)
EBITDA $ 23,690 $ 16,052
Loss per share (basic and diluted) $ (0.02) $ (0.01)


Three month periods ended March 31, 2012 and 2011

Revenue for the three month period ended March 31, 2012 increased by $10.6 million or 42.1% to $35.7 million, as compared to $25.1 million for the same period in 2011. The increase was mainly attributable to the delivery of the Shinyo Kieran in June 2011, the Buddy and the Bull in July 2011, the Nave Andromeda in November 2011 and the Nave Estella in January 2012. As a result of the vessel acquisitions, available days of the fleet increased to 1,319 days for the three month period ended March 31, 2012, as compared to 874 days for the three month period ended March 31, 2011. The time charter equivalent ("TCE") rate decreased to $26,683 for the three month period ended March 31, 2012, from $29,558 for the three month period ended March 31, 2011.

EBITDA for the three months ended March 31, 2012, increased by $7.6 million to $23.7 million for the three month period ended March 31, 2012, as compared to $16.1 million for the same period of 2011. The increase in EBITDA was due to a: (a) $10.6 million increase in revenue following the acquisition of the Shinyo Kieran that was delivered in June 2011, the Buddy and the Bull in July 2011, the Nave Andromeda in November 2011 and the Nave Estella in January 2012; (b) $0.1 million decrease in general and administrative expenses; and (c) $0.4 million increase in other income/(expense), net. The above increase was partially offset by a (a) $3.4 million increase in management fees due to the increased number of vessels in Navios Acquisition's fleet; and (b) $0.1 million increase in time charter expenses.

Net loss for the three month period ended March 31, 2012 amounted to $0.8 million compared to a $0.4 million loss for the three month period ended March 31, 2011. The increase in net loss by $0.4 million was due a: (a) $0.5 million increase in direct vessel expenses; (b) $3.3 million increase of interest expenses and finance cost, net; (c) $3.9 million increase in depreciation and amortization due to the acquisitions of the Shinyo Kieran in June 2011, and the Buddy and the Bull in July 2011, the Nave Andromeda in November 2011 and the Nave Estella in January 2012; and (d) $0.3 million decrease in interest income. The above increase was partially offset by a $7.6 million increase in EBITDA.

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 periods ended March 31, 2012 and 2011, respectively.

 
Three Month Three Month
Period ended Period ended
March 31, 2012 March 31, 2011
(unaudited) (unaudited)
-------------- --------------

Available Days (1) 1,319 874
Operating Days (2) 1,296 843
Fleet Utilization (3) 98.3% 96.5%
Time Charter Equivalent (per day) (4) $ 26,683 $ 29,558
Vessels operating at period end 15 10

(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 ("TCE") rates are 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 on 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, May 8, 2012 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, 2012.

US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 7464 4709

The conference call replay will be available two hours 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: 7464 4709

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 (NNA - News) 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 revenues 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 tanker industry trends, including charter rates and vessel values and factors affecting vessel supply and demand, competitive factors in the market in which Navios Acquisition operates; Navios Acquisition's ability to maintain or develop new and existing customer relationships, including its ability to enter into charters for its vessels; risks associated with operations outside the United States; and other factors listed from time to time in 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 December
31, 2012 31, 2011
ASSETS (unaudited)
------------ ------------
Current assets

Cash and cash equivalents $ 41,178 $ 41,300
Restricted cash, short term portion 36,133 30,640
Accounts receivable, net 6,040 6,478
Prepaid expenses and other current assets 259 489
------------ ------------
Total current assets 83,610 78,907
------------ ------------

Vessels, net 809,448 774,624
Deposits for vessels acquisitions 309,307 245,567
Deferred finance costs, net 23,834 24,819
Goodwill 1,579 1,579
Intangible assets -- other than goodwill 57,718 59,879
Restricted cash long -- term portion -- 1,574
Other long-term assets 1,328 1,310
Deferred dry dock and special survey costs, net 7,394 7,210
Total non-current assets 1,210,608 1,116,562

Total assets $ 1,294,218 $ 1,195,469
============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 503 $ 1,021
Dividend payable 2,410 2,421
Accrued expenses 22,313 15,492
Due to related parties, short term 40,570 43,616
Deferred revenue 3,010 3,251
Current portion of long term debt 13,276 11,928
------------ ------------
Total current liabilities 82,082 77,729
------------ ------------

Long-term debt, net of current portion and
premium 921,631 833,483
Loans due to related party 35,000 40,000
Due to related parties, long term 14,712 --
Other long term liabilities 412 480
Unfavorable lease terms 4,757 4,928
------------ ------------
Total non-current liabilities 976,512 878,891
------------ ------------

Total liabilities 1,058,594 956,620
------------ ------------

Commitments and contingencies -- --

Stockholders' equity
Preferred stock, $0.0001 par value; 10,000,000
shares authorized; 4,540 issued and outstanding
as of March 31, 2012 and December 31, 2011 -- --
Common stock, $0.0001 par value; 250,000,000
shares authorized; 40,517,413 issued and
outstanding as of March 31, 2012 and December
31, 2011 4 4
Additional paid-in capital 253,412 255,849
Accumulated Deficit (17,792) (17,004)
------------ ------------
Total stockholders' equity 235,624 238,849
------------ ------------

Total liabilities and stockholders' equity $ 1,294,218 $ 1,195,469
============ ============




NAVIOS MARITIME ACQUISITION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of U.S. dollars- except share and per share data)

Three Month Three Month
Period Ended, Period Ended,
March 31, 2012 March 31, 2011
-------------- --------------
(unaudited) (unaudited)
Revenue $ 35,717 $ 25,130
Time charter expenses (530) (427)
Direct vessel expenses (502) --
Management fees (10,955) (7,584)
General and administrative expenses (912) (1,025)
Depreciation and amortization (11,946) (8,045)
Interest income 177 480
Interest expenses and finance cost, net (12,207) (8,893)
Other income/(expense), net 370 (42)
-------------- --------------
Net loss $ (788) $ (406)
============== ==============

Dividend declared on preferred shares Series
B (27) (26)
Undistributed loss attributable to Series C
participating preferred shares 130 1
-------------- --------------
Net loss attributable to common stockholders $ (685) $ (431)
-------------- --------------

Net loss per share, basic $ (0.02) $ (0.01)
============== ==============

Weighted average number of shares, basic 40,517,413 46,947,161
============== ==============

Net loss per share, diluted $ (0.02) $ (0.01)
============== ==============

Weighted average number of shares, diluted 40,517,413 46,947,161
============== ==============




NAVIOS MARITIME ACQUISITION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. dollars)

For the Three For the Three
Months Months
Ended Ended
March 31, March 31,
2012 2011
(unaudited) (unaudited)
------------- -------------
Operating Activities
Net loss $ (788) $ (406)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 11,946 8,045
Amortization of deferred finance costs 693 381
Amortization of dry dock costs 502 --
Changes in operating assets and liabilities:
Decrease in prepaid expenses 230 48
Decrease in accounts receivable 438 3,037
Decrease in restricted cash 65 5
Decrease in other long term assets (18) --
Decrease in accounts payable (518) (2,990)
Payments for dry dock and special survey costs (687) --
Increase in accrued expenses 6,821 9,492
Increase in due to related parties 11,666 1,026
(Decrease)/ increase in deferred revenue (241) 111
Decrease in other long term liabilities (68) --
------------- -------------
Net cash provided by operating activities $ 30,041 $ 18,749
------------- -------------

Investing Activities
Acquisition of vessels (11,159) (4,533)
Deposits for vessel acquisition (97,128) (2,995)
Restricted cash 2,991 778
------------- -------------
Net cash used in investing activities $ (105,296) $ (6,750)
------------- -------------

Financing Activities
Loan proceeds, net of deferred finance costs 92,538 3,035
Loan repayment to related party (5,000) --
Loan repayments (2,982) (897)
Dividend paid (2,448) (2,447)
Restricted cash (6,975) (625)
------------- -------------
Net cash provided by/(used in) financing
activities $ 75,133 $ (934)
------------- -------------

Net (decrease)/increase in cash and cash
equivalents (122) 11,065
Cash and cash equivalents, beginning of year 41,300 61,360
------------- -------------
Cash and cash equivalents, end of period $ 41,178 $ 72,425
============= =============




EXHIBIT II
Reconciliation of EBITDA to Net Cash provided by Operating Activities
(Expressed in thousands of U.S. dollars)


Three Month Three Month
Period Period
Ended Ended
March 31, 2012 March 31, 2011
--------------- ---------------
(unaudited) (unaudited)
Expressed in thousands of U.S. dollars
Net cash provided by operating activities $ 30,041 $ 18,749
Decrease in operating assets (715) (3,090)
Increase in operating liabilities (17,660) (7,639)
Net interest cost 12,030 8,413
Amortization of deferred finance costs (693) (381)
Payments of dry dock and special survey
costs 687 --
--------------- ---------------
EBITDA(1) $ 23,690 $ 16,052
=============== ===============

(1)
Three Month Three Month
Period Ended Period Ended
March 31, 2012 March 31, 2011
(unaudited) (unaudited)
-------------- ---------------
Net cash provided by operating activities 30,041 $ 18,749
Net cash used in investing activities (105,296) $ (6,750)
Net cash provided by/(used in) financing
activities 75,133 $ (934)


Disclosure of Non-GAAP Financial Measures
EBITDA represents net income/ (loss) plus interest expenses and finance cost plus depreciation and amortization and income taxes.

EBITDA is presented because Navios Acquisition believes that EBITDA is 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 is "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.

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
Delivery Charter Expiration
Vessels Type Date DWT Rate(1) Profit Share Date(2)
------------ -------- -------- ------- ------- ------------ ----------
Owned
Vessels
Nave Cielo LR1 2007 74,671 11,751 (3,4) None November
Product 2012
Tanker
Nave Ariadne LR1 2007 74,671 11,751 (3,4) None November
Product 2012
Tanker
Nave Cosmos Chemical 2010 25,130 11,700 60%/40% August
Tanker 2012
Nave Polaris Chemical 2011 25,145 11,700 60%/40% July 2012
Tanker
Shinyo VLCC 1993 306,474 38,019 None May 2014
Splendor
Shinyo VLCC 1996 300,549 42,705 None December
Navigator 2016
C. Dream VLCC 2000 298,570 29,625 50% above March 2019
$30,000
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 2025
Saowalak $54,388
40% above
59,388
50% above
69,388
Shinyo VLCC 2011 297,066 48,153 35% above June 2026
Kieran $54,388
40% above
$59,388
50% above
$69,388
Buddy MR2 2009 50,470 22,490 None October
Product 2012
Tanker
21,503 None October
2014
Bull MR2 2009 50,542 22,490 None September
Product 2012
Tanker
21,503 None September
2014
Nave LR1 2011 75,000 11,850 (5) 100% up to November
Andromeda Product $15,000 2014
Tanker
50% above
$15,000
Nave Estella LR1 2012 75,000 11,850 (6) 90% up to January
Product $15,000 2015
Tanker 50% above
$15,000

Owned Vessels to be Delivered
TBN LR1 Q3 2012 75,000
TBN LR1 Q4 2012 75,000
TBN LR1 Q4 2012 75,000
TBN LR1 Q4 2012 75,000
TBN MR2 Q3 2012 50,000 13,331 (7) 50% /50%
TBN MR2 Q3 2012 50,000 13,331 (7) 50% /50%
TBN MR2 Q4 2012 50,000 13,331 (8) 50% /50%
TBN MR2 Q4 2012 50,000 13,331 (8) 50% /50%
TBN MR2 Q4 2012 50,000 13,825 (9) 50% /50%
TBN MR2 Q1 2013 50,000
TBN MR2 Q1 2013 50,000
TBN MR2 Q2 2014 50,000
TBN MR2 Q3 2014 50,000
TBN MR2 Q4 2014 50,000

(1) Net time charter-out rate per day (net of commissions).
(2) Estimated dates assuming midpoint of redelivery of charterers.
(3) On October 28, 2011, the charter contracts for the Nave Cielo and the
Nave Ariadne were terminated prior to their original expiration in June
2013. Navios Acquisition entered into certain settlement agreements
with charterers that provide for an amount of approximately $5.0
million to compensate for the early termination of the charters and to
cover any outstanding receivables, out of which $2.0 million will be
settled in installments until June 2015.
(4) Charterer's option to extend the charter for 1+1+1 years at $12,739
(net) 1st optional year; $13,825 (net) plus 50/50% profit sharing 2nd
optional year; $14,813 (net) plus 50/50% profit sharing 3rd optional
year.
(5) Charterer's option to extend the charter for 1+1 years at $12,838 (net)
1st optional year plus 100% profit up to $16,000 plus 50/50% profit
sharing above $16,000; $13,825 (net) 2nd optional year plus 100% profit
up to $17,000 plus 50/50% profit sharing above $17,000. Profit sharing
formula is calculated monthly and incorporates $2,000 premium above the
relevant index.
(6) Charterer's option to extend the charter for 1+1 years at $11,850 (net)
1st optional year plus 90% profit up to $16,000 plus 50/50% profit
sharing above $16,000; $11,850 (net) 2nd optional year plus 90% profit
up to $17,000 plus 50/50% profit sharing above $17,000. Profit sharing
formula is calculated monthly and incorporates $2,000 premium above the
relevant index.
(7) Charter duration three years. Charterer's option to extend the charter
for 1+ 1 years at $14,566 (net) 1st optional year plus profit sharing;
$15,553 (net) 2nd optional year plus profit sharing. The profit sharing
will be calculated monthly and profits will be shared equally. Profit
sharing formula incorporates $1,000 premium above the relevant index.
(8) Charter duration three years. Charterer's option to extend the charter
for 1 year at $14,813 (net) plus profit sharing. The charterers will
receive 100% of the first $1,000 in profits above the base rate and the
owners will receive 100% of the next $1,000. Thereafter, all profits
will be split equally to each party.
(9) Charter duration three years. Charterer's option to extend the charter
for 1 year at $15,306 (net) plus profit sharing. The charterers will
receive 100% of the first $1,000 in profits above the base rate and the
owners will receive 100% of the next $1,000. Thereafter, all profits
will be split equally to each party.


Contact:
Public & Investor Relations
Navios Maritime Acquisition Corporation
+1.212.906.8644
info@navios-acquisition.com

View Comments (0)