Navios Maritime Acquisition Corporation, an owner and operator of tanker vessels, yesterday 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 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.
Source: Navios Acquisition