Navios Maritime Acquisition Corporation Reports Financial Results For The Second Quarter And Six Months Ended June 30, 2016

  • Net income
    • $12.2 million for Q2 2016; $0.08 per share
    • $36.0 million for the six months 2016; $0.23 per share
  • Profit sharing
    • $1.3 million for Q2 2016
    • $7.4 million for the six months 2016
  • Quarterly dividend of $0.05 per share; 12.7% current annualized yield

MONACO, Aug. 18, 2016 (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, 2016. 

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition stated, "Navios Acquisition reported net income of $12.2 million or $0.08 per share for the second quarter of 2016 and $36.0 million or $0.23 per share for the first half of 2016. This included $1.3 million of profit sharing in the second quarter of 2016 of a total of $7.4 million in the first half of 2016.  We declared a dividend of $0.05 per share for the quarter, resulting in a dividend yield of about 13% on an annualized basis." 

Angeliki Frangou continued, "NNA has 38 vessels with an average age of 5.4 years, all of which are generating cash flow. Our fleet is 98.2% fixed for 2016 and 56.6% fixed for 2017, and our operating costs are fixed through mid-2018, at rates that are about 11% below industry average through our operating agreements with Navios Holdings."  

HIGHLIGHTS — RECENT DEVELOPMENTS  

Dividend of $0.05 per share of common stock

On August 10, 2016, the Board of Directors of Navios Acquisition declared a quarterly cash dividend for the second quarter of 2016 of $0.05 per share of common stock. The dividend is payable on September 21, 2016 to stockholders of record as of September 14, 2016 and provides a current annualized yield of 12.7%.

Profit sharing

During the second quarter of 2016, Navios Acquisition benefited from the healthy spot market and earned $1.3 million under its profit sharing arrangements. Profit sharing recognized for the six months ended June 30, 2016 was $7.4 million.

Time Charter Coverage

Navios Acquisition currently owns 38 vessels, of which eight are VLCCs, 26 are product tankers and four are chemical tankers which include the two vessels, the Nave Constellation, a 2013-built chemical tanker of 45,281 dwt, and the Nave Universe, a 2013-built chemical tanker of 45,513 dwt, that Navios Acquisition has agreed to sell following the completion of their chartering commitments, expected during the second half of 2016. 

As of August 18, 2016, Navios Acquisition had contracted 98.2% and 56.6% of its available days on a charter-out basis for 2016 and 2017, respectively, expecting to generate revenues of approximately $256.9 million and $118.7 million, respectively. The average contractual daily charter-out rate for the fleet is expected to be $20,679 and $21,020 for 2016 and 2017, respectively.   

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, 2016 and 2015. The quarterly information for 2016 and 2015 was derived from the unaudited condensed consolidated financial statements for the respective periods.  
                             
(Expressed in thousands of U.S. dollars)     ThreeMonth Periodended June 30,  2016 (unaudited)     ThreeMonthPeriodended June 30,  2015 (unaudited)       Six Month Periodended June 30,  2016 (unaudited)     Six Month Periodended June 30, 2015 (unaudited)  
Revenue     $ 74,495     $ 80,408       $ 154,914     $ 159,019  
Net cash provided by operating activities     $ 24,176     $ 20,034       $ 50,237     $ 54,144  
EBITDA     $ 45,186     $ 60,398       $ 102,954     $ 113,606  
Adjusted EBITDA (1)     $ 45,450     $ 55,289       $ 101,200     $ 109,153  
Net income     $ 12,184     $ 26,362       $ 35,954     $ 46,396  
Adjusted net income (1)     $ 12,448     $ 22,029       $ 34,414     $ 42,719  
Earnings per share (basic)     $ 0.08     $ 0.17       $ 0.23     $ 0.29  
Adjusted earnings per share (basic) (1)     $ 0.08     $ 0.14       $ 0.22     $ 0.27  
                                     

(1) 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. Net income and Earnings per share (basic) have been further adjusted to exclude $0.2 million write-off of deferred finance cost.  Adjusted EBITDA, Adjusted net income and Adjusted earnings (basic) 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 (basic) have been further adjusted to exclude $0.8 million write off of deferred finance cost and debt prepayment expenses. Adjusted EBITDA, Adjusted net income and Adjusted earnings (basic) 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 (basic) have been further adjusted to exclude $0.8 million write off of deferred finance cost and debt prepayment expenses.

EBITDA and Adjusted EBITDA 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 EBITDA and Adjusted EBITDA). 

Three month periods ended June 30, 2016 and 2015   

Revenue for the three month period ended June 30, 2016 decreased by $5.9 million or 7.4% to $74.5 million, as compared to $80.4 million for the same period of 2015. The decrease was mainly attributable to: (i) the decrease in profit sharing by $7.2 million to $1.3 million recognized in the three month period ended June 30, 2016, as compared to $8.6 million for the same period in 2015; and (ii) the decrease in revenue by $6.9 million due to the sale of two VLCCs in June 2015 and one MR2 tanker vessel in January 2016. The decrease was partially mitigated by the increase in revenue following the deliveries of two vessels from April 2015 until June 30, 2016. Available days of the fleet decreased to 3,437 days for the three month period ended June 30, 2016, as compared to 3,523 days for the three month period ended June 30, 2015. The TCE Rate decreased to $21,380 for the three month period ended June 30, 2016, from $22,541 for the three month period ended June 30, 2015.

EBITDA for the three month period ended June 30, 2016 decreased by $15.2 million to $45.2 million from $60.4 million in the same period of 2015. The decrease in EBITDA was mainly due to: (i) a $5.9 million decrease in revenue; (ii) $5.8 million of gain from sale of vessels recognized in the three month period ended June 30, 2015; (iii) a $2.1 million increase in general and administrative expenses; (iv) a $0.8 million increase in other expense, net; and (v) $0.7 million increase in direct vessel expenses (excluding amortization of dry dock and special survey costs), partially mitigated by a $0.1 million increase in equity in net earnings of affiliated companies. 

Net income for the three month period ended June 30, 2016, decreased by approximately $14.2 million to $12.2 million compared to $26.4 million, for the same period in 2015. The decrease was due to: (i) a decrease of $15.2 million in EBITDA; and (ii) an increase of $0.3 million in amortization of dry docking and special survey costs included in direct vessel expenses. The decrease was partially mitigated by: (a) an increase of $0.6 million in interest income; (b) a decrease of $0.6 million in depreciation and amortization; and (c) a decrease of $0.2 million in interest expense and finance cost.

Six month periods ended June 30, 2016 and 2015

Revenue for the six month period ended June 30, 2016 decreased by $4.1 million or 2.6% to $154.9 million, as compared to $159.0 million for the same period of 2015. The decrease was mainly attributable to: (i) the decrease in profit sharing by $8.8 million to $7.4 million recognized in the six month period ended June 30, 2016, as compared to $16.2 million for the same period in 2015; and (ii) the decrease in revenue by $14.7 million due to the sale of two VLCCs in June 2015 and one MR2 tanker vessel in January 2016. The decrease was partially mitigated by the increase in revenue following deliveries of four vessels during the period from January 2015 until June 30, 2016. Available days of the fleet decreased to 6,914 days for the six month period ended June 30, 2016, as compared to 6,961 days for the six month period ended June 30, 2015. The TCE Rate slightly decreased to $22,055 for the six month period ended June 30, 2016, from $22,531 for the six month period ended June 30, 2015.

EBITDA for the six month period ended June 30, 2016 decreased by $10.7 million to $103.0 million from $113.6 million in the same period of 2015. The decrease in EBITDA was mainly due to: (i) a $4.1 million decrease in revenue; (ii) the decrease in the gain on sale of vessels by $3.5 million; (iii) a $2.4 million increase in general and administrative expenses; (iv) a $1.0 million increase in other expense, net; (v) a $0.3 million increase in time charter expenses; (vi) a $0.2 million increase in management fees; and (vii) $0.7 million increase in direct vessel expenses (excluding amortization of dry dock and special survey costs), partially mitigated by a $1.5 million increase in equity in net earnings of affiliated companies.

Net income for the six month period ended June 30, 2016 decreased by $10.4 million to $36.0 million from $46.4 million for the same period of 2015. The decrease was due to: (i) a decrease of $10.7 million in EBITDA; (ii) an increase of $0.7 million in interest expense and finance cost; and (iii) an increase of $0.6 million in amortization of dry docking and special survey costs included in direct vessel expenses. The decrease was partially mitigated by: (a) an increase of $1.0 million in interest income; and (b) a decrease of $0.6 million 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, 2016 and 2015.
                                 
    Three month period ended June 30,     Six month period ended June 30,  
    2016 (unaudited)     2015 (unaudited)     2016 (unaudited)     2015 (unaudited)  
FLEET DATA                                
Available days (1)     3,437       3,523       6,914       6,961  
Operating days (2)     3,428       3,511       6,899       6,936  
Fleet utilization (3)     99.8     99.7     99.8     99.7
Vessels operating at period end     38       37       38       37  
AVERAGE DAILY RESULTS                                
Time Charter Equivalent ("TCE") Rate per day (4)   $ 21,380     $ 22,541     $ 22,055     $ 22,531  
                                 

(1) Available days: 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, dry dockings 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 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, Thursday, August 18, 2016 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, 2016.

US Dial In: +1.877.480.3873

International Dial In: +1.404.665.9927

Conference ID: 2750 1665

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: 2750 1665

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, 2016 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 Securities and Exchange Commission, including its Form 20Fs and Form 6Ks. 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, 2016 (unaudited)     December 31, 2015 (unaudited)
ASSETS                  
Current assets                  
Cash and cash equivalents       $ 69,536     $ 54,805
Restricted cash         6,904       6,840
Accounts receivable, net         15,939       14,202
Due from related parties, short-term         21,661       17,837
Prepaid expenses and other current assets         2,261       3,665
Total current assets         116,301       97,349
                   
Vessels, net         1,335,363       1,441,635
Vessels held for sale         62,072      
Goodwill         1,579       1,579
Other long-term assets         5,850       1,920
Deferred dry dock and special survey costs, net         10,186       10,326
Investment in affiliates         201,711       204,808
Due from related parties, long-term         28,257       16,474
Total non-current assets         1,645,018       1,676,742
Total assets       $ 1,761,319     $ 1,774,091
                   
LIABILITIES AND STOCKHOLDERS' EQUITY                  
Current liabilities                  
Accounts payable       $ 2,366     $ 2,753
Accrued expenses         13,211       9,802
Deferred revenue         6,516       7,600
Current portion of long-term debt, net of deferred finance cost         74,864       62,643
                   
Total current liabilities         96,957       82,798
Long-term debt, net of current portion, premium and net of deferred finance cost         1,089,901       1,134,940
Deferred gain on sale of assets         8,459       8,982
Total non-current liabilities         1,098,360       1,143,922
Total liabilities       $ 1,195,317     $ 1,226,720
                   
Commitments and contingencies              
Puttable common stock 450,000 and 650,000 shares issued and outstanding with $4,500 and $6,500 redemption amount as of June 30, 2016 and December 31, 2015, respectively         4,500       6,500
Stockholders' equity                  
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; 1,000 series C shares and 4,000 series A and C shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively              
Common stock, $0.0001 par value; 250,000,000 shares authorized; 150,782,990 and 149,782,990 issued and outstanding as of June 30, 2016 and December 31, 2015, respectively         15       15
Additional paid-in capital         541,384       540,856
Retained earnings         20,103      
Total stockholders' equity         561,502       540,871
Total liabilities and stockholders' equity       $ 1,761,319     $ 1,774,091

                                         
NAVIOS MARITIME ACQUISITION CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME(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, 2016     June 30, 2015     June 30, 2016     June 30, 2015  
        (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Revenue       $ 74,495     $ 80,408         $ 154,914     $ 159,019  
Time charter and voyage expenses         (1,017 )     (996 )         (2,438 )     (2,186 )
Direct vessel expenses         (1,405 )     (348 )         (2,049 )     (697 )
Management fees         (24,318 )     (24,293 )         (48,504 )     (48,335 )
General and administrative expenses         (5,981 )     (3,903 )         (9,510 )     (7,068 )
Depreciation and amortization         (14,294 )     (14,880 )         (29,177 )     (29,771 )
Gain on sale of vessels               5,771           2,282       5,771  
Interest income         880       302           1,534       573  
Interest expense and finance cost         (18,913 )     (19,110 )         (38,038 )     (37,315 )
Equity in net earnings of affiliated companies         3,731       3,651           8,622       7,089  
Other expense, net         (994 )     (240 )         (1,682 )     (684 )
Net income       $   12,184     $ 26,362         $ 35,954     $   46,396  
                                         
Dividend on Series B preferred shares               (27 )               (54 )
Dividend on Series D preferred shares               (61 )               (199 )
Dividend declared on restricted shares         (35 )     (70 )         (70 )     (140 )
Undistributed income attributable to Series C participating preferred shares         (591 )     (1,271 )         (1,752 )     (2,233 )
Net income attributable to common shareholders, basic       $   11,558     $ 24,933         $ 34,132     $   43,770  
Dividend on Series B preferred shares               27                 54  
Dividend on Series D preferred shares               61                 199  
Dividend declared on restricted shares         35       70           70       140  
Net income attributable to common shareholders, diluted       $   11,593     $ 25,091         $ 34,202     $   44,163  
Net income per share, basic       $ 0.08     $ 0.17         $ 0.23     $ 0.29  
                                         
Weighted average number of shares, basic         150,084,084       150,580,595           149,668,699       150,455,682  
                                         
Net income per share, diluted       $ 0.08     $ 0.16         $ 0.23     $ 0.29  
                                         
Weighted average number of shares, diluted         150,784,089       154,197,621           150,836,836       154,340,946  
                                         

                     
NAVIOS MARITIME ACQUISITION CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Expressed in thousands of U.S. dollars)
                     
        For the Six Months Ended June 30, 2016 (unaudited)     For the Six Months Ended June 30, 2015 (unaudited)  
Operating Activities                    
Net income       $ 35,954     $ 46,396  
Adjustments to reconcile net income to net cash provided by operating activities:                    
Depreciation and amortization         29,177       29,771  
Amortization and write-off of deferred finance cost and bond premium         1,864       1,993  
Amortization of deferred dry dock and special survey costs         1,319       697  
Stock based compensation         528       1,318  
Gain on sale of vessels         (2,282 )     (5,771 )
Equity in net earnings of affiliated companies, net of dividends received         (833 )     (1,159 )
Changes in operating assets and liabilities:                    
Decrease in prepaid expenses and other current assets         1,404       1,388  
Increase in accounts receivable         (1,737 )     (3,143 )
Increase in due from related parties short-term         (3,824 )     (2,860 )
Increase in restricted cash         (64 )     (50 )
(Increase)/ decrease in other long term assets         (3,930 )     210  
(Decrease)/ increase in accounts payable         (387 )     726  
Increase in accrued expenses         3,409       638  
Payments for dry dock and special survey costs         (2,324 )      
Increase in due from related parties long-term         (6,430 )      
Decrease in due to related parties               (17,462 )
(Decrease)/ increase in deferred revenue         (1,607 )     1,452  
Net cash provided by operating activities       $   50,237     $ 54,144  
                     
Investing Activities                    
Acquisition of vessels               (29,397 )
Dividends received from affiliates         2,853       757  
Net proceeds from sale of vessels         18,449       71,224  
Investment in affiliates               (4,826 )
Loans receivable from affiliates         (4,275 )     (3,289 )
  Net cash provided by investing activities       $   17,027     $   34,469  
                     
Financing Activities                    
Loan proceeds, net of deferred finance cost               25,954  
Loan repayments         (34,682 )     (64,198 )
Dividend paid         (15,851 )     (16,170 )
Payment to related party               (11,265 )
Decrease in restricted cash               (130 )
Redemption of convertible shares and puttable common stock         (2,000 )     (3,500 )
  Net cash used in financing activities       $   (52,533 )   $   (69,309 )
                     
Net increase in cash and cash equivalents         14,731       19,304  
Cash and cash equivalents, beginning of year         54,805       54,493  
  Cash and cash equivalents, end of period       $   69,536     $ 73,797  
                     

                      EXHIBIT II
                       
Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities
                         
    Three Month     Three Month     Six Month     Six Month  
Period Period Period Period
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2016 2015 2016 2015
(unaudited) (unaudited) (unaudited) (unaudited)
Expressed in thousands of U.S. dollars                                
Net cash provided by operating activities   $ 24,176     $ 20,034     $ 50,237     $ 54,144  
Net (decrease)/ increase in operating assets     (5,054 )     (677 )     16,905       4,455  
Net decrease/ (increase) in operating liabilities     8,774       20,666       (1,415 )     14,646  
Net interest cost     18,033       18,808       36,504       36,742  
Amortization of deferred finance cost     (822 )     (1,263 )     (1,864 )     (1,993 )
Earnings in affiliates, net of dividends received     343       (2,279 )     833       1,159  
Stock based compensation     (264 )     (662 )     (528 )     (1,318 )
Gain on sale of vessels           5,771       2,282       5,771  
EBITDA     45,186       60,398       102,954       113,606  
Stock based compensation     264       662       528       1,318  
Gain on sale of vessels           (5,771 )     (2,282 )     (5,771 )
Adjusted EBITDA   $ 45,450     $ 55,289     $ 101,200     $ 109,153  
                                 
                                 
    Three Month     Three Month     Six Month     Six Month  
Period Period Period Period
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2016 2015 2016 2015
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Net cash provided by operating activities   $ 24,176     $ 20,034     $ 50,237     $ 54,144  
Net cash provided by investing activities   $ 1,935     $ 61,902     $ 17,027     $ 34,469  
Net cash used in financing activities   $ (21,216 )   $ (65,742 )   $ (52,533 )   $ (69,309 )
                                 

Disclosure of Non-GAAP Financial Measures

EBITDA and Adjusted EBITDA 

EBITDA for the three and six months ended June 30, 2016 in this document represents net income plus interest and finance costs plus depreciation and amortization and income taxes less interest income.

Adjusted EBITDA for the three and six months ended June 30, 2016 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 represent net income before interest and finance cost, before depreciation and amortization, income taxes, gain on sale of vessel and stock-based compensation. We use EBITDA and Adjusted EBITDA as liquidity measures and reconcile Adjusted EBITDA to net cash provided by/ (used in) operating activities, the most comparable U.S. GAAP liquidity measure. EBITDA and Adjusted EBITDA in this document are 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) provision for losses on accounts receivable; (vi) equity in net earnings of affiliated companies, net of dividends received; (vii) payments for dry dock and special survey costs; (viii) gain/(loss) on sale of assets/subsidiaries; and (ix) impairment charges. Navios Acquisition believes that EBITDA and Adjusted EBITDA are 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 EBITDA and Adjusted EBITDA are 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.

EBITDA and Adjusted EBITDA have limitations as analytical tools, 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) EBITDA and Adjusted EBITDA do 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. EBITDA and Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as a principal indicator of Navios Acquisition's performance. Furthermore, our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.
           
          EXHIBIT III
Vessels Type Year Built/Delivery     DWT
Date    
Owned Vessels            
Nave Constellation (1) Chemical Tanker 2013       45,281
Nave Universe (1) 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 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

(1) Vessel is expected to be sold in the second half of 2016, following the completion of its chartering commitments.
Public & Investor Relations Contact:Navios Maritime Acquisition Corporation+1.212.906.8644info@navios-acquisition.com

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