Exhibit 99.1
Navios Maritime Acquisition Corporation
Reports Financial Results for the Third Quarter and Nine Months ended
September 30, 2014
• | Successful closing of Navios Midstream IPO |
• | Sold four VLCCs to Navios Midstream for $379.4 million |
• | Repaid $132.3 million of bank debt |
• | Acquired one VLCC |
• | Delivery of two MR2 product tankers |
• | 29.9% increase in Q3 Revenue to $69.3 million |
• | 35.8% increase in Q3 Adjusted EBITDA to $39.7 million |
• | Quarterly dividend of $0.05 per share |
MONACO November 20, 2014 – Navios Maritime Acquisition Corporation (“Navios Acquisition”) (NYSE: NNA), an owner and operator of tanker vessels, reported its financial results today for the third quarter and nine months ended September 30, 2014.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition stated, “I am pleased with our results - we grew adjusted EBITDA by 35.8% and declared a quarterly dividend of $0.05 per share. We have consistently paid a dividend, and today stockholders are receiving a yield of almost 7.3% on NNA common stock.”
Angeliki Frangou continued, “We were pleased to launch Navios Maritime Midstream Partners L.P. as a new high growth platform in the wet sector for dividend seeking investors. Navios Acquisition transferred four VLCCs to Navios Midstream for a consideration totaling $379.4 million and is using the proceeds to reduce debt and replenish its fleet. Navios Midstream is a new public entity that will be a natural home for certain of our assets that are developed to the point of providing attractive long-term returns, providing Navios Acquisition with flexibility and liquidity.”
HIGHLIGHTS – RECENT DEVELOPMENTS
Navios Maritime Midstream Partners L.P.
In November 2014, Navios Maritime Midstream Partners L.P. (“Navios Midstream”) completed its initial public offering of 8,100,000 common units (or 9,315,000 common units if the underwriters exercise their over-allotment option in full). In conjunction with the completion of the offering, Navios Acquisition contributed and/or sold to Navios Midstream, for total consideration of $379.4 million, all of the outstanding shares of capital stock of four of its VLCC- owning subsidiaries in exchange for: (i) $214.9 million of cash consideration; (ii) 9,342,692 subordinated units and 1,242,692 common units; and (iii) 381,334 general partner units, representing a 2.0% general partner interest in Navios Midstream, including all of its incentive distribution rights. The estimated value of all the units was based on the initial public offering price of $15.00. In total, Navios Acquisition owns an economic interest of 57.5% in Navios Midstream.
In connection with the offering, Navios Acquisition (a) used $132.3 million of cash to repay bank debt and (b) replaced the four VLCCs with two other VLCCs (pending delivery of the Nave Synergy, expected in December 2014, cash is being used as collateral) and six product tankers as collateral under its Senior Secured Notes.
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Dividend of $0.05 per share of common stock
On October 31, 2014, the Board of Directors declared a quarterly cash dividend in respect of the third quarter of 2014 of $0.05 per share of common stock payable on January 6, 2015 to stockholders of record as of December 17, 2014.
Fleet Update
In November 2014, Navios Acquisition agreed to acquire the Nave Synergy, a 2010-built 299,973 dwt VLCC, from an unaffiliated third party, for a purchase price of $75.5 million. The vessel is expected to be delivered in December 2014.
On November 20, 2014, Navios Acquisition took delivery of the Nave Pyxis, a newbuilding 49,998 dwt MR2 product tanker, from an unaffiliated third party, for a purchase price of approximately $31.5 million.
On September 19, 2014, Navios Acquisition took delivery of the Nave Luminosity, a newbuilding 49,999 dwt MR2 product tanker, from an unaffiliated third party, for a purchase price of $35.5 million.
Navios Acquisition currently owns 41 vessels, eight VLCCs, 29 product tankers and four chemical tankers of which, 36 vessels are currently on-the-water with the remaining five vessels, still to be delivered.
Time Charter Coverage
As of November 20, 2014, Navios Acquisition had contracted 99.4% and 56.9% of its available days on a charter-out basis for 2014 and 2015, respectively, equivalent to $236.2 million and $123.5 million of expected revenue, respectively. The average contractual daily charter-out rate for the fleet is $18,549 and $16,435 for 2014 and 2015, 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 nine months ended September 30, 2014 and 2013. The quarterly information for 2014 and 2013 was derived from the unaudited condensed consolidated financial statements for the respective periods.
(Expressed in thousands of U.S. dollars) | Three Month Period ended September 30, 2014 (unaudited) | Three Month Period ended September 30, 2013 (unaudited) | Nine Month Period ended September 30, 2014 (unaudited) | Nine Month Period ended September 30, 2013 (unaudited) | ||||||||||||
Revenue | $ | 69,309 | $ | 53,372 | $ | 192,520 | $ | 144,601 | ||||||||
Adjusted EBITDA(1) | $ | 39,663 | $ | 29,207 | $ | 110,513 | $ | 86,513 | ||||||||
Net Income/ (Loss) | $ | 1,659 | $ | (4,114 | ) | $ | (13,963 | ) | $ | (4,915 | ) | |||||
Adjusted Net Income/ (Loss)(1) | $ | 3,133 | $ | (1,685 | ) | $ | 4,193 | $ | (867 | ) | ||||||
Net Earnings/(Loss) per share (basic and diluted) | $ | 0.01 | $ | (0.03 | ) | $ | (0.10 | ) | $ | (0.05 | ) | |||||
Adjusted Net Income/ (Loss) per share (basic and diluted)(1) | $ | 0.02 | $ | (0.01 | ) | $ | 0.02 | $ | (0.01 | ) |
(1) | Adjusted EBITDA, Adjusted Net Income/ (Loss) and Adjusted Net Income/(Loss) per share (basic and diluted) for the three month period ended September 30, 2014 in this document exclude stock-based compensation of $1.5 million. |
Adjusted EBITDA, Adjusted Net Income/ (Loss) and Adjusted Net Income/ (Loss) per share (basic and diluted) for the nine month period ended September 30, 2014 in this document exclude, stock-based compensation of $4.4 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.
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Adjusted Net Income/(Loss) and Adjusted Net Income/(Loss) per share (basic and diluted) for the three and the nine month period ended September 30, 2013, exclude $2.4 million and $4.0 million of accelerated amortization of the intangible assets associated with charter-out contracts of two MR2 product tanker vessels, following charterer’s default.
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 September 30, 2014 and 2013
Revenue for the three month period ended September 30, 2014 increased by $15.9 million or 29.9% to $69.3 million, as compared to $53.4 million for the same period in 2013. The increase was mainly attributable to the deliveries of eight MR2 product tankers, two chemical tankers and six VLCCs during the period from July 1, 2013 until September 30, 2014. As a result of these vessel deliveries, available days of the fleet increased to 3,476 days for the three month period ended September 30, 2014, as compared to 2,646 days for the three month period ended September 30, 2013 and TCE increased to $19,327 for the three month period ended September 30, 2014, from $18,835 for the three month period ended September 30, 2013.
Excluding the effect of $1.5 million for non-cash stock-based compensation expense, Adjusted EBITDA for the three month period ended September 30, 2014 increased by $10.5 million to $39.7 million from $29.2 million in the three month period ended September 30, 2013. The increase in Adjusted EBITDA was due to a: (a) $15.9 million increase in revenue; and (b) $1.4 million decrease in time charter expenses partially mitigated by a: (i) $5.7 million increase in management fees due to the increased number of vessels to Navios Acquisition’s fleet; (ii) $1.0 million increase in general and administrative expenses; and (iii) $0.1 million decrease in other income, net.
Net income for the three month period ended September 30, 2014, amounting to $1.7 million, was adversely affected by a $1.5 million non-cash stock- based compensation expense. Net loss for the three month period ended September 30, 2013, amounting to $4.1 million was adversely affected by $2.4 million of accelerated amortization of the intangible assets associated with charter-out contracts of two MR2 tanker vessels. Excluding these items, Adjusted Net income for the three month period ended September 30, 2014, amounted to $3.1 million compared to a $1.7 million Adjusted Net loss, for the three month period ended September 30, 2013. The increase in Adjusted Net income by $4.8 million was due to:
(a) an increase of $10.5 million in Adjusted EBITDA; (b) a $0.4 million decrease in direct vessel expenses; and (c) a $0.2 million increase in interest income partially mitigated by: (i) a $2.5 million increase in depreciation and amortization due to the acquisitions of the vessels described above; and (ii) a $3.8 million increase in interest expense and finance cost net.
Nine month periods ended September 30, 2014 and 2013
Revenue for the nine month period ended September 30, 2014 increased by $47.9 million or 33.1% to $192.5 million, as compared to $144.6 million for the same period in 2013. The increase was mainly attributable to the deliveries of 14 MR2 product tankers, two chemical tankers and six VLCCs during the period from January 1, 2013 until September 30, 2014. As a result of these vessel acquisitions, available days of the fleet increased to 9,875 days for the nine month period ended September 30, 2014, as compared to 6,573 days for the nine month period ended September 30, 2013. TCE decreased to $19,060 for the nine month period ended September 30, 2014, from $21,256 for the nine month period ended September 30, 2013 due to the fact that the fleet on-the-water in the first nine month period of 2014 included more smaller tankers (mainly MR2s), which are fixed at lower rates, compared to the fleet in the first nine month period of 2013.
Excluding the impact of $4.4 million for non-cash stock-based compensation expense, a $12.6 million non-cash impairment loss and loss on sale of vessel recognized for one of our VLCCs sold in May 2014 and a $1.2 million non-cash fair value loss related to other assets, Adjusted EBITDA for the nine month period ended September 30, 2014 increased by $24.0 million to $110.5 million from $86.5 million in the nine month period ended September 30, 2013. The increase in Adjusted EBITDA was due to a: (a) $47.9 million increase in revenue; (b) $0.6 million decrease in time charter expenses; and (c) $0.6 million increase in other income/
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(expense), net, partially mitigated by a: (i) $21.9 million increase in management fees due to the increased number of vessels to Navios Acquisition’s fleet; and (ii) $3.2 million increase in general and administrative expenses.
Net loss for the nine month period ended September 30, 2014, amounted to $14.0 million and was adversely affected by a $12.6 million non-cash impairment loss and loss on sale of vessel recognized for one of our VLCCs sold in May 2014, a $1.2 million non-cash fair value loss related to other assets and a $4.4 million non-cash stock-based compensation expense. Net loss for the nine month period ended September 30, 2013, amounting to $4.9 million was adversely affected by $4.0 million of accelerated amortization of the intangible assets associated with charter-out contracts of two MR2 tanker vessels. Excluding the items described above, Adjusted Net income for the nine month period ended September 30, 2014, amounted to $4.2 million, compared to $0.9 million Adjusted Net loss for the nine month period ended September 30, 2013. The increase in Adjusted Net income by $5.1 million was due to: (i) an increase of $24.0 million in Adjusted EBITDA; (ii) a $0.7 million decrease in direct vessel expenses; and (iii) a $0.2 million increase in interest income mitigated by an: (a) $8.2 million increase in depreciation and amortization due to the acquisitions of the vessels described above; and (b) $11.6 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 nine months ended September 30, 2014 and 2013.
Three month period ended September 30, | Nine month period ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
FLEET DATA | ||||||||||||||||
Available days(1) | 3,476 | 2,646 | 9,875 | 6,573 | ||||||||||||
Operating days(2) | 3,471 | 2,618 | 9,851 | 6,542 | ||||||||||||
Fleet utilization(3) | 99.9 | % | 98.9 | % | 99.8 | % | 99.5 | % | ||||||||
Vessels operating at period end | 39 | 33 | 39 | 33 | ||||||||||||
AVERAGE DAILY RESULTS | ||||||||||||||||
Time Charter Equivalent per day(4) | $ | 19,327 | $ | 18,835 | $ | 19,060 | $ | 21,256 |
(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) | Time Charter Equivalent 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 Time Charter Equivalent 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. |
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Conference Call, Webcast and Presentation Details:
As previously announced, Navios Acquisition will host a conference call today, Thursday, November 20, 2014 at 8:30 am ET, at which time Navios Acquisition’s senior management will provide highlights and commentary on the results of the third quarter and nine months ended September 30, 2014.
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 2330 4570
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: 2330 4570
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 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.
Public & Investor Relations Contact:
Navios Maritime Acquisition Corporation
+1.212.906.8644
info@navios-acquisition.com
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EXHIBIT I
NAVIOS MARITIME ACQUISITION CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of U.S. Dollars — except share data)
September 30, 2014 (unaudited) | December 31, 2013 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 65,227 | $ | 82,835 | ||||
Restricted cash | 7,038 | 24,962 | ||||||
Accounts receivable, net | 15,143 | 8,441 | ||||||
Prepaid expenses and other current assets | 8,823 | 4,563 | ||||||
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Total current assets | 96,231 | 120,801 | ||||||
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Vessels, net | 1,603,937 | 1,353,131 | ||||||
Deposits for vessels acquisitions | 57,510 | 100,112 | ||||||
Deferred finance costs, net | 25,228 | 23,246 | ||||||
Goodwill | 1,579 | 1,579 | ||||||
Intangible assets-other than goodwill | 36,276 | 40,171 | ||||||
Other long-term assets | 632 | 5,533 | ||||||
Deferred dry dock and special survey costs, net | 2,685 | 4,678 | ||||||
Investment in affiliates | 4,873 | 4,750 | ||||||
Loan receivable from affiliate | 6,366 | 2,660 | ||||||
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Total non-current assets | 1,739,086 | 1,535,860 | ||||||
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Total assets | $ | 1,835,317 | $ | 1,656,661 | ||||
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LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 2,437 | $ | 1,577 | ||||
Dividend payable | 7,994 | 7,220 | ||||||
Accrued expenses | 24,662 | 11,985 | ||||||
Due to related parties, short term | 5,921 | 2,848 | ||||||
Deferred revenue | 6,479 | 7,056 | ||||||
Current portion of long-term debt | 46,534 | 34,714 | ||||||
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Total current liabilities | 94,027 | 65,400 | ||||||
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Long-term debt, net of current portion and premium | 1,237,417 | 1,119,734 | ||||||
Due to related parties, long term | 17,746 | 5,144 | ||||||
Unfavorable lease terms | 3,048 | 3,561 | ||||||
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Total non-current liabilities | 1,258,211 | 1,128,439 | ||||||
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Total liabilities | $ | 1,352,238 | $ | 1,193,839 | ||||
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Commitments and contingencies | — | — | ||||||
Series D Convertible Preferred stock 1,200 shares issued and outstanding with $12,000 redemption amount as of each of September 30, 2014 and December 31, 2013 | 12,000 | 12,000 | ||||||
Stockholders’ equity | ||||||||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; 4,540 issued and outstanding as of each of September 30, 2014 and December 31, 2013 | — | — | ||||||
Common stock, $0.0001 par value; 250,000,000 shares authorized; 151,664,942 and 136,714,942 issued and outstanding as of each of September 30, 2014 and December 31, 2013, respectively | 15 | 13 | ||||||
Additional paid-in capital | 564,421 | 530,203 | ||||||
Accumulated deficit | (93,357 | ) | (79,394 | ) | ||||
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Total stockholders’ equity | 471,079 | 450,822 | ||||||
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Total liabilities and stockholders’ equity | $ | 1,835,317 | $ | 1,656,661 | ||||
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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 Months Ended September 30, 2014 (unaudited) | For the Three Months Ended September 30, 2013 (unaudited) | For the Nine Months Ended September 30, 2014 (unaudited) | For the Nine Months Ended September 30, 2013 (unaudited) | |||||||||||||
Revenue | $ | 69,309 | $ | 53,372 | $ | 192,520 | $ | 144,601 | ||||||||
Time charter and voyage expenses | (2,127 | ) | (3,534 | ) | (4,305 | ) | (4,891 | ) | ||||||||
Direct vessel expenses | (369 | ) | (786 | ) | (1,582 | ) | (2,310 | ) | ||||||||
Management fees | (25,136 | ) | (19,408 | ) | (71,223 | ) | (49,332 | ) | ||||||||
General and administrative expenses | (3,923 | ) | (1,438 | ) | (11,235 | ) | (3,645 | ) | ||||||||
Depreciation and amortization | (17,821 | ) | (17,759 | ) | (51,418 | ) | (47,212 | ) | ||||||||
Impairment loss and loss on sale of vessel | — | — | (12,594 | ) | — | |||||||||||
Interest income | 208 | 17 | 487 | 272 | ||||||||||||
Interest expenses and finance cost, net | (18,548 | ) | (14,793 | ) | (53,807 | ) | (42,178 | ) | ||||||||
Change in fair value of other assets | — | — | (1,188 | ) | — | |||||||||||
Other income/ (expense), net | 66 | 215 | 382 | (220 | ) | |||||||||||
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Net income/(loss) | $ | 1,659 | $ | (4,114 | ) | $ | (13,963 | ) | $ | (4,915 | ) | |||||
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Dividend declared on preferred shares Series B | (27 | ) | (27 | ) | (81 | ) | (81 | ) | ||||||||
Dividend declared on Series D preferred shares | (181 | ) | (15 | ) | (461 | ) | (15 | ) | ||||||||
Dividend declared on restricted shares | (105 | ) | — | (315 | ) | — | ||||||||||
Undistributed (income)/loss attributable to Series C participating preferred shares | (66 | ) | 267 | 760 | 301 | |||||||||||
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Net income/(loss) attributable to common shareholders | 1,280 | (3,889 | ) | (14,060 | ) | (4,710 | ) | |||||||||
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Net income/(loss) loss per share, basic | $ | 0.01 | $ | (0.03 | ) | $ | (0.10 | ) | $ | (0.05 | ) | |||||
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Weighted average number of shares, basic | 149,564,942 | 112,593,485 | 146,772,085 | 85,774,797 | ||||||||||||
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Net income/(loss) per share, diluted | $ | 0.01 | $ | (0.03 | ) | $ | (0.10 | ) | $ | (0.05 | ) | |||||
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Weighted average number of shares, diluted | 150,764,942 | 112,593,485 | 146,772,085 | 85,774,797 | ||||||||||||
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NAVIOS MARITIME ACQUISITION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. dollars)
For the Nine Months Ended September 30, 2014 (unaudited) | For the Nine Months Ended September 30, 2013 (unaudited) | |||||||
Operating Activities | ||||||||
Net loss | $ | (13,963 | ) | $ | (4,915 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 51,418 | 47,212 | ||||||
Amortization and write-off of deferred finance fees and bond premium | 2,325 | 2,120 | ||||||
Amortization of deferred dry dock and special survey costs | 1,582 | 2,310 | ||||||
Stock based compensation | 4,374 | — | ||||||
Impairment loss and loss on sale of vessel | 12,594 | — | ||||||
Change in fair value of other assets | 1,188 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
(Increase)/decrease in prepaid expenses and other current assets | (5,242 | ) | 66 | |||||
Increase in accounts receivable | (6,702 | ) | (6,334 | ) | ||||
Decrease/(increase) in restricted cash | 177 | (1,228 | ) | |||||
Decrease/(increase) other long term assets | 3,105 | (3,453 | ) | |||||
Increase/(decrease) in accounts payable | 860 | (93 | ) | |||||
Increase in accrued expenses | 12,677 | 10,169 | ||||||
Payments for dry dock and special survey costs | (609 | ) | (241 | ) | ||||
Increase/(decrease) in due to related parties, short term and long term | 12,562 | (60,198 | ) | |||||
Decrease in deferred revenue | (577 | ) | (184 | ) | ||||
Decrease in other long term liabilities | — | (204 | ) | |||||
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Net cash provided by/(used in) operating activities | $ | 75,768 | $ | (14,973 | ) | |||
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Investing Activities | ||||||||
Acquisition of vessels | (258,393 | ) | (275,705 | ) | ||||
Deposits for vessel acquisitions | (23,358 | ) | (9,950 | ) | ||||
Decrease in restricted cash | — | 10,076 | ||||||
Net proceeds from sale of vessel | 18,315 | — | ||||||
Loan to affiliate | (3,211 | ) | — | |||||
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Net cash used in investing activities | $ | (266,647 | ) | $ | (275,579 | ) | ||
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Financing Activities | ||||||||
Loan proceeds, net of deferred finance costs | 139,132 | 155,963 | ||||||
Loan repayment to related party | — | (35,000 | ) | |||||
Loan repayments | (73,825 | ) | (49,836 | ) | ||||
Dividend paid | (23,668 | ) | (12,493 | ) | ||||
Payment to related party | — | (22,800 | ) | |||||
Decrease in restricted cash | 17,747 | 5,958 | ||||||
Net proceeds from equity offering | 54,287 | 307,522 | ||||||
Proceeds from issuance of ship mortgage and senior notes, net of debt issuance costs and premium | 59,598 | — | ||||||
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Net cash provided by financing activities | $ | 173,271 | $ | 349,314 | ||||
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Net (decrease)/increase in cash and cash equivalents | (17,608 | ) | 58,762 | |||||
Cash and cash equivalents, beginning of year | 82,835 | 42,846 | ||||||
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Cash and cash equivalents, end of period | $ | 65,227 | $ | 101,608 | ||||
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EXHIBIT II
Reconciliation of Adjusted EBITDA to Net Cash provided by/ (used in) Operating Activities
(Expressed in thousands of U.S. dollars)
Three Month Period Ended September 30, 2014 (unaudited) | Three Month Period Ended September 30, 2013 (unaudited) | Nine Month Period Ended September 30, 2014 (unaudited) | Nine Month Period Ended September 30, 2013 (unaudited) | |||||||||||||
Expressed in thousands of U.S. dollars | ||||||||||||||||
Net cash provided by/ (used in) operating activities | $ | 37,739 | $ | 3,576 | $ | 75,768 | $ | (14,973 | ) | |||||||
Net increase in operating assets | 6,198 | 8,210 | 9,271 | 11,190 | ||||||||||||
Net (increase)/decrease in operating liabilities | (21,785 | ) | 3,468 | (25,521 | ) | 50,510 | ||||||||||
Net interest cost | 18,340 | 14,776 | 53,320 | 41,906 | ||||||||||||
Deferred finance costs | (829 | ) | (823 | ) | (2,325 | ) | (2,120 | ) | ||||||||
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Adjusted EBITDA(1) | $ | 39,663 | $ | 29,207 | $ | 110,513 | $ | 86,513 | ||||||||
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(1) | Three Month Period Ended September 30, 2014 (unaudited) | Three Month Period Ended September 30, 2013 (unaudited) | Nine Month Period Ended September 30, 2014 (unaudited) | Nine Month Period Ended September 30, 2013 (unaudited) | ||||||||||||
Net cash provided by/(used in) operating activities | $ | 37,739 | $ | 3,576 | $ | 75,768 | $ | (14,973 | ) | |||||||
Net cash used in investing activities | $ | (57,534 | ) | $ | (174,680 | ) | $ | (266,647 | ) | $ | (275,579 | ) | ||||
Net cash provided by financing activities | $ | 23,734 | $ | 164,912 | $ | 173,271 | $ | 349,314 |
Disclosure of Non-GAAP Financial Measures
Adjusted EBITDA
Adjusted EBITDA for the nine month period ended September 30, 2014 in this document represents, net loss plus interest expense and finance cost plus depreciation and amortization and finance income, before stock-based compensation of $4.4 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. For the nine months ended September 30, 2013, there were no corresponding losses or expenses.
Adjusted EBITDA for the three month period ended September 30, 2014 in this document represents, net income plus interest expense and finance cost plus depreciation and amortization and finance income, before stock-based compensation of $1.5 million. For the three months ended September 30, 2013, there were no corresponding losses or expenses.
Adjusted EBITDA is presented because Navios Acquisition believes that Adjusted 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. Adjusted 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. While Adjusted EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of Adjusted EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.
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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 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 Galactic | VLCC | 2009 | 297,168 | |||||
Nave Celeste | VLCC | 2003 | 298,717 | |||||
Nave Neutrino | VLCC | 2003 | 298,287 | |||||
Nave Electron | VLCC | 2002 | 305,178 | |||||
C. Dream | VLCC | 2000 | 298,570 | |||||
Owned Vessels to be Delivered | ||||||||
Nave Synergy | VLCC | Q4 2014 | 299,973 | |||||
Nave Velocity | MR2 Product Tanker | Q1 2015 | 50,000 | |||||
Nave Sextans | MR2 Product Tanker | Q1 2015 | 51,200 | |||||
TBN | MR2 Product Tanker | Q3 2015 | 51,200 | |||||
TBN | MR2 Product Tanker | Q4 2015 | 51,200 |
10