NNA Navios Maritime Acquisition Corporation

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, 2020.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition stated, “I am pleased with our results for the third quarter of 2020.  During the third quarter, Navios Acquisition reported revenue of $78.8 million and Adjusted EBITDA of $37.1 million. Navios Acquisition also declared a reduced quarterly dividend of $0.05 per share of common stock, representing an annual distribution of $0.20 per share.”​

Angeliki Frangou continued, “We reduced our debt by $81.3 million (7%) while we also continued to expand our fleet with no capex. In October, we took delivery of the first bareboat charter-in VLCC and expect three more bareboat chartered-in VLCCs to be delivered over time. Three of these vessels have also been chartered out.”

HIGHLIGHTS — RECENT DEVELOPMENTS

Quarterly dividend: $0.05 per share

The Board of Directors declared a quarterly cash dividend in respect of the third quarter of 2020 of $0.05 per share of common stock which will be paid on February 10, 2021 to stockholders of record as of January 12, 2021. The declaration and payment of any further dividends remain subject to the discretion of the Board of Directors and will depend on, among other things, Navios Acquisition’s cash requirements as measured by market opportunities and restrictions under its credit agreements and other debt obligations and such other factors as the Board of Directors may deem advisable.   

Debt developements

During the third quarter of 2020 and up to December 1, 2020, Navios Acquisition repurchased $55.4 million of its ship mortgage notes for a cash consideration of $39.4 million.

As of September 30, 2020, the Company reduced its outstanding debt by $81.3 million, or 7%, excluding the debt associated with the seven containers that are accounted for as held for sale and proforma for the bond repurchases up to December 1, 2020.

In October 2020, Navios Acquisition extended the maturity date to February 2021 of its existing loan with a commercial bank, having an outstanding amount of $17.6 million.

In October 2020, Navios Acquisition extended the maturity date to October 2024 of its existing loan with a commercial bank, having an outstanding amount of $28.4 million. The remaining balance of the facility is repayable in 16 quarterly installments of $0.8 million each with a final balloon payment of $14.9 million repayable on the last repayment date.

In November 2020, Navios Acquisition arranged financing with a commercial bank of up to $95.8 million in order to refinance one VLCC, two chemical tankers and seven containerships, subject to the refinancing of its ship mortgage notes and to definitive documentation. The facility is repayable through a period of two to four years, in consecutive quarterly installments of up to $1.5 million each, with a balloon payment of up to $62.7 million in total. The facility bears interest at LIBOR plus 400 bps per annum. 

Continuous Offering Program 

On November 29, 2019, Navios Acquisition entered into a Continuous Offering Program Sales Agreement, pursuant to which Navios Acquisition may issue and sell from time to time through the sales agent shares of common stock having an aggregate offering price of up to $25.0 million. As of December 1, 2020, since the commencement of the program, Navios Acquisition has issued 956,110 shares of common stock and received net proceeds of $5.3 million. 

Fleet employment

As of December 1, 2020, Navios Acquisition’s core fleet consisted of a total of 47 vessels, of which 14 are very large crude carriers (“VLCCs”) (including one bareboat chartered-in VLCC that has been delivered on October 28, 2020 and three bareboat chartered-in VLCCs expected to be delivered in each of the first and the third quarters of 2021 and the second quarter of 2022), 31 are product tankers and two are chemical tankers. Navios Acquisition also owns seven containerships that are accounted for as held for sale.

Currently, Navios Acquisition has contracted 55.7% of its available days of its core fleet on a charter-out basis for 2021. The average base contractual net daily charter-out rate for the 51.7% of available days that are contracted on base rate and on base rate with profit sharing arrangements is expected to be $20,237.

FINANCIAL HIGHLIGHTS For the following results and the selected financial data presented herein, Navios Acquisition has compiled its consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019. The quarterly information for 2020 and 2019 was derived from the unaudited condensed consolidated financial statements for the respective periods.  

(Expressed in thousands of U.S. dollars)			Three MonthPeriod endedSeptember 30, 2020(unaudited)				Three MonthPeriod endedSeptember 30, 2019(unaudited)					Nine MonthPeriodendedSeptember 30, 2020(unaudited)				Nine MonthPeriodendedSeptember 30,2019(unaudited)
Revenue			$	78,807			$	58,965				$	288,888			$	194,669
Net income/(loss)			$	3,236			$	(56,396	)			$	35,122			$	(72,085	)
Adjusted net (loss)/ income			$	(3,650	) (1)		$	(16,186	)	(2)		$	43,593	(3)		$	(34,180	) (4)
Net cash provided by operating activities			$	35,262			$	19,513				$	85,985			$	21,058
EBITDA			$	43,936			$	16,413				$	158,754			$	82,560
Adjusted EBITDA			$	37,050	(1)		$	23,934		(2)		$	166,014	(3)		$	87,296	(4)
Earnings/ (loss) per share (basic)			$	0.20			$	(4.18	)			$	2.20			$	(5.38	)
Earnings/ (loss) per share (diluted)			$	0.20			$	(4.18	)			$	2.18			$	(5.38	)
Adjusted (loss)/ earnings per share (basic)			$	(0.23	) (1)		$	(1.20	)	(2)		$	2.73	(3)		$	(2.56	) (4)
Adjusted (loss)/ earnings per share (diluted)			$	(0.23	) (1)		$	(1.20	)	(2)		$	2.72	(3)		$	(2.56	) (4)

(1)	EBITDA, net earnings and earnings per share basic and diluted for the three month period ended September 30, 2020 have been adjusted to exclude $7.0 million gain from bond repurchase and $0.1 million of non-cash stock based compensation.
(2)	EBITDA, net loss and loss per share basic for the three month period ended September 30, 2019 has been adjusted to exclude $7.3 million impairment loss relating to the sale of one VLCC and $0.2 million of non-cash stock based compensation. Net loss and loss per share basic for the three month period ended September 30, 2019 have been further adjusted to exclude $32.7 million accelerated amortization of intangible assets in connection with early termination of certain contracts.
(3)	EBITDA, net earnings and earnings per share basic and diluted for the nine month period ended September 30, 2020 have been adjusted to exclude $13.9 million impairment loss relating to the other-than-temporary impairment recognized in the Navios Acquisition's receivable from Navios Europe II, $7.0 million gain from bond repurchase and $0.4 million of non-cash stock based compensation. Net loss and loss per share basic and diluted for the nine month period ended September 30, 2020 have been further adjusted to exclude $1.2 million write off of deferred finance costs.
(4)	EBITDA, net loss and loss per share for the nine month period ended September 30, 2019 has been adjusted to exclude $7.3 million impairment loss relating to the sale of one VLCC, $3.2 million gain on sale of vessels and $0.7 million of non-cash stock based compensation. Net loss and loss per share basic for the nine month period ended September 30, 2019 have been further adjusted to exclude $32.7 million accelerated amortization of intangible assets in connection with early termination of certain contracts and $0.5 million write off of deferred finance costs.EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted earnings 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 EBITDA and Adjusted EBITDA).

Three month periods ended September 30, 2020 and 2019

Revenue for the three month period ended September 30, 2020 increased by $19.8 million, or 33.6%, to $78.8 million, as compared to $59.0 million for the same period of 2019. The increase was mainly attributable to an: (i) increase in revenue by $6.0 million due to the acquisition of five product tankers from Navios Europe I in December 2019 and by $5.2 million due to the acquisition of seven containers from Navios Europe II in June 2020; and (ii) increase in market rates during the three month period ended September 30, 2020 as compared to the same period of 2019; partially mitigated by the sale of three VLCCs in 2019. Available days of the fleet increased to 4,520 days for the three month period ended September 30, 2020, as compared to 3,491 days for the three month period ended September 30, 2019, due to the reasons mentioned above. The time charter equivalent rate, or TCE Rate, increased to $16,870 for the three month period ended September 30, 2020, from $15,349 for the three month period ended September 30, 2019.

Time charter and voyage expenses for the three month period ended September 30, 2020 decreased by $2.8 million, or 51.9%, to $2.6 million, as compared to $5.4 million for the same period of 2019. The decrease was mainly attributable to a $3.1 million decrease in bunkers consumption and voyage expenses related to the spot voyages incurred in the period; partially mitigated by a $0.3 million increase in brokers’ commission.

Net income was $3.2 million for the three month period ended September 30, 2020 as compared to $56.4 million net loss for the same period of 2019. Net income was affected by the items described in the table above. Adjusted net loss for the three month period ended September 30, 2020 was $3.7 million as compared to $16.2 million adjusted net loss for the same period of 2019. The increase in adjusted net loss was mainly attributable to a : (a) $13.2 million increase in adjusted EBITDA; (b) $2.4 million decrease in interest expense and finance cost (excluding write off of deferred finance costs); and (c) $0.5 million decrease in depreciation and amortization; partially mitigated by a : (i) $2.4 million decrease in interest income; and (ii) $1.2 million increase in direct vessel expenses (in relation to amortization of dry dock and special survey cost).

Adjusted EBITDA affected by the items described in the table above, for the three month period ended September 30, 2020 increased by $13.2 million to $37.1 million, as compared to $23.9 million for the same period of 2019. The increase in Adjusted EBITDA was mainly due to a: (a) $19.8 million increase in revenue; and (b) $2.8 million decrease in time charter and voyage expenses; partially mitigated by a: (i) $7.2 million increase in operating expenses mainly due to the acquisition of the five product tankers from Navios Europe I in December 2019 and to the seven containers from Navios Europe II in June 2020 and to the amendment of the fees under the management agreement, partially mitigated by the sale of three VLCCs in 2019; (ii) $1.1 million increase in general and administrative expenses (excluding stock-based compensation); (iii) $0.9 million decrease in equity in net earnings of affiliated companies; and (iv) $0.2 million increase in other expense.

Nine month periods ended September 30, 2020 and 2019

Revenue for the nine month period ended September 30, 2020 increased by $94.2 million, or 48.4%, to $288.9 million, as compared to $194.7 million for the same period of 2019. The increase was mainly attributable to an: (i) increase in revenue by $22.9 million due to the acquisition of five product tankers from Navios Europe I in December 2019 and by $5.2 million due to the acquisition of seven containers from Navios Europe II in June 2020; and (ii) increase in market rates during the nine month period ended September 30, 2020 as compared to the same period of 2019; partially mitigated by the sale of three VLCCs in 2019. Available days of the fleet increased to 12,134 days for the nine month period ended September 30, 2020, as compared to 10,678 days for the nine month period ended September 30, 2019, due to the reasons mentioned above. The TCE Rate increased to $22,812 for the nine month period ended September 30, 2020, from $16,888 for the nine month period ended September 30, 2019.

Time charter and voyage expenses for the nine month period ended September 30, 2020 decreased by $2.2 million, or 15.4%, to $12.1 million, as compared to $14.3 million for the same period of 2019. The decrease was mainly attributable to a $4.6 million decrease in bunkers consumption and voyage expenses related to the spot voyages incurred in the period; partially mitigated by a: (i) $1.6 million increase in port expenses; and (ii) $0.8 million increase in brokers’ commission.

Net income was $35.1 million for the nine month period ended September 30, 2020 as compared to $72.1 million net loss for the same period of 2019. Net income was affected by the items described in the table above. Adjusted net income for the nine month period ended September 30, 2020 was $43.6 million as compared to $34.2 million adjusted net loss for the same period of 2019. The increase in adjusted net income was mainly attributable to a: (a) $78.7 million increase in adjusted EBITDA; (b) $6.0 million decrease in interest expense and finance cost (excluding write off of deferred finance costs); and (c) $2.4 million decrease in depreciation and amortization; partially mitigated by a: (i) $6.8 million decrease in interest income; and (ii) $2.7 million increase in direct vessel expenses (in relation to amortization of dry dock and special survey cost).

Adjusted EBITDA affected by the items described in the table above, for the nine month period ended September 30, 2020 increased by $78.7 million to $166.0 million, as compared to $87.3 million for the same period of 2019. The increase in Adjusted EBITDA was mainly due to a: (a) $94.2 million increase in revenue; (b) $2.2 million decrease in time charter and voyage expenses; and (c) $0.4 million decrease in general and administrative expenses (excluding stock-based compensation); partially mitigated by a: (i) $12.4 million increase in operating expenses mainly due to the acquisition of the five product tankers from Navios Europe I in December 2019 and due to the acquisition of seven containers from Navios Europe II in June 2020 and to the amendment of the fees under the management agreement, partially mitigated by the sale of three VLCCs in 2019; (ii) $2.7 million decrease in equity in net earnings of affiliated companies; (iii) $1.3 million decrease in other income; (iv) $1.2 million increase in other expense; and (v) $0.6 million increase in direct vessel expenses (other than amortization of dry dock and special survey cost).

Fleet employment profile    The following table reflects certain key indicators of the performance of Navios Acquisition’s fleet for the three and nine month periods ended September 30, 2020 and 2019.

		Three month period endedSeptember 30,								Nine month period endedSeptember 30,
		2020(unaudited)				2019(unaudited)				2020(unaudited)				2019(unaudited)
FLEET DATA
Available days(1)			4,520				3,491				12,134				10,678
Operating days(2)			4,477				3,472				12,036				10,642
Fleet utilization(3)			99.1	%			99.4	%			99.2	%			99.7	%
Vessels operating at period end			50				39				50				39
AVERAGE DAILY RESULTS
Time charter equivalent rate per day(4)		$	16,870			$	15,349			$	22,812			$	16,888

Navios Acquisition believes that the important measures for analyzing trends in its results of income consist of the following:

(1	)	Available days: Available days for the fleet are total calendar days the vessels were in Navios Acquisition’s possession for the relevant period after subtracting off-hire days associated with major repairs, drydocking or special surveys. The shipping industry uses available days to measure the number of days in a relevant period during which vessels should be capable of generating revenues.
(2	)	Operating days: Operating days are the number of available days in the relevant period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances.
(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.
(4	)	TCE Rate: Time charter equivalent rate per day is defined as voyage and time charter revenues less voyage expenses during a period divided by the number of available days during the period. The TCE Rate per day is a standard shipping industry performance measure used primarily to present the actual daily earnings generated by vessels of various types of charter contracts for the number of available days of the fleet.

Conference Call, Webcast and Presentation Details:

As previously announced, Navios Acquisition will host a conference call on Tuesday, December 1, 2020 at 8:30 am ET, at which time Navios Acquisitions' senior management will provide highlights and commentary on earnings results for the third quarter and nine months ended September 30, 2020.

US Dial In: +1.877.480.3873International Dial In: +1.404.665.9927Conference ID: 709 4007

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: +1.800.585.8367International Replay Dial In: +1.404.537.3406Conference ID: 709 4007

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, expected cash flow generation and Navios Acquisition’s growth strategy and measures to implement such strategy, including expected vessel acquisitions and entering into further employment contracts. 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 employment contracts. 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 risks and are based upon a number of assumptions and estimates that 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 risks related to: global and regional economic and political conditions including the impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, including effects on global economic activity, demand for seaborne transportation of the products we ship, the ability and willingness of charterers to fulfill their obligations to us and prevailing charter rates, shipyards performing scrubber installations, drydocking and repairs, changing vessel crews and availability of financing; potential disruption of shipping routes due to accidents, diseases, pandemics, political events, piracy or acts by terrorists, including the impact of the COVID-19 pandemic and the ongoing efforts throughout the world to contain it; 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; operations outside the United States; and other factors listed from time to time in Navios Acquisition’s filings with the SEC, including its annual and interim reports filed on Form 20-F and Form 6-K. Navios Acquisition expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Acquisition’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Navios Acquisition makes no prediction or statement about the performance of its common stock.

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

EXHIBIT I

NAVIOS MARITIME ACQUISITION CORPORATIONSELECTED BALANCE SHEET DATA(Expressed in thousands of U.S. dollars- except share data)

			September 30,2020				December 31,2019
ASSETS
Cash and cash equivalents, including restricted cash			$	60,253			$	44,051
Vessels, net				1,302,682				1,348,251
Assets held for sale				82,577				—
Other assets (including current and non-current)			$	102,742			$	162,074
Goodwill				1,579				1,579
Total assets			$	1,549,833			$	1,555,955
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities associated with assets held for sale			$	37,419			$	—
Other current liabilities				46,330				68,986
Long-term debt, including current portion, net of deferred finance costs and premium				1,128,183				1,173,117
Total liabilities			$	1,211,932			$	1,242,103
Total stockholders’ equity			$	337,901			$	313,852
Total liabilities and stockholders’ equity			$	1,549,833			$	1,555,955

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

	For the ThreeMonthsEndedSeptember 30, 2020(unaudited)				For the ThreeMonthsEndedSeptember 30, 2019(unaudited)				For the NineMonthsEndedSeptember 30, 2020(unaudited)				For the NineMonthsEndedSeptember 30, 2019(unaudited)
Revenue	$	78,807			$	58,965			$	288,888			$	194,669
Time charter and voyage expenses		(2,559	)			(5,377	)			(12,091	)			(14,340	)
Direct vessel expenses		(3,766	)			(2,439	)			(10,371	)			(7,117	)
Vessel operating expenses (management fees entirely through related party transactions)		(33,969	)			(26,837	)			(93,642	)			(81,224	)
General and administrative expenses		(4,719	)			(3,732	)			(14,966	)			(15,677	)
Depreciation and amortization		(16,682	)			(17,216	)			(49,931	)			(52,257	)
(Loss)/ gain on sale of vessels/ Impairment loss		—				(39,976	)			—				(36,731	)
Gain on debt repurchase		7,010				—				7,010				—
Interest income		25				2,384				32				6,840
Interest expense and finance cost		(20,441	)			(22,849	)			(63,964	)			(69,474	)
Impairment of receivable in affiliated company / Equity in net earnings of affiliated companies		—				936				(13,900	)			2,670
Other income		—				10				—				1,343
Other expense		(470	)			(265	)			(1,943	)			(787	)
Net income/ (loss)	$	3,236			$	(56,396	)		$	35,122			$	(72,085	)
Net income/ (loss) per share, basic	$	0.20			$	(4.18	)		$	2.20			$	(5.38	)
Weighted average number of shares, basic		16,104,011				13,510,361				15,903,447				13,446,836
Net income/ (loss) per share, diluted	$	0.20			$	(4.18	)		$	2.18			$	(5.38	)
Weighted average number of shares, diluted		16,257,957				13,510,361				16,058,579				13,446,836

EXHIBIT II

    Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities

	Three MonthPeriodEndedSeptember 30,2020(unaudited)					Three MonthPeriodEndedSeptember 30,2019(unaudited)					Nine MonthPeriodEndedSeptember 30,2020(unaudited)							Nine MonthPeriodEndedSeptember 30,2019(unaudited)
Expressed in thousands of U.S. dollars
Net cash provided by operating activities	$	35,262			$	19,513					$		85,985					$		21,058
Net (increase)/ decrease in operating assets		(20,341	)			(5,311	)						(21,710	)						132
Net (decrease)/ increase in operating liabilities		(7,376	)			(15,735	)						11,342							(2,633		)
Net interest cost		20,416				20,465							63,932							62,634
Amortization and write-off of deferred finance costs and bond premium		(1,359	)			(1,053	)						(4,404	)						(3,346		)
Impairment of receivable in Navios Europe II / Equity in net earnings of affiliated companies		—				936							(13,900	)						2,670
Payments for dry dock and special survey costs		10,448				5,119							30,869							6,781
Gain on sale of vessels		—				—							—							3,245
Impairment loss		—				(7,287	)						—							(7,287		)
Gain on debt repurchase		7,010				—							7,010							—
Stock-based compensation		(124	)			(234	)						(370	)						(694		)
EBITDA	$	43,936			$	16,413					$		158,754					$		82,560
Gain on sale of vessels		—				—							—							(3,245		)
Impairment of receivable in Navios Europe II		—				7,287							13,900							7,287
Gain on debt repurchase		(7,010	)			—							(7,010	)						—
Stock-based compensation		124				234							370							694
Adjusted EBITDA	$	37,050			$	23,934					$		166,014					$		87,296

	Three MonthPeriodEndedSeptember 30,2020(unaudited)				Three MonthPeriodEndedSeptember 30,2019(unaudited)				Nine MonthPeriodEndedSeptember 30,2020(unaudited)				Nine MonthPeriodEndedSeptember 30,2019(unaudited)
Net cash provided by operating activities	$	35,262			$	19,513			$	85,985			$	21,058
Net cash (used in)/ provided by investing activities	$	(1,785	)		$	5,605			$	(46,408	)		$	31,343
Net cash (used in)/ provided by financing activities	$	(41,706	)		$	35,792			$	(23,375	)		$	3,862

Disclosure of Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, Adjusted net income/ (loss) and Adjusted income/ (loss) per share (basic and diluted) are non-U.S. GAAP financial measures and should not be used in isolation or as substitution for Navios Acquisition’s results calculated in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).

EBITDA represents net income/ (loss) before interest and finance costs, before depreciation and amortization and before income taxes. Adjusted EBITDA in this document represents EBITDA excluding certain items as described under “Financial Highlights”. Adjusted net income/ (loss) and Adjusted income/ (loss) per share (basic and diluted) represent Net income/ (loss) and income/ (loss) per share (basic and diluted), excluding certain items as described under “Financial Highlights”. We use Adjusted EBITDA as liquidity measure and reconcile EBITDA and Adjusted EBITDA to net cash provided by/ (used in) operating activities, the most comparable U.S. GAAP liquidity measure. EBITDA is calculated as follows: net cash provided by/(used in) operating activities adding back, when applicable and as the case may be, the effect of: (i) net increase/(decrease) in operating assets; (ii) net (increase)/decrease in operating liabilities; (iii) net interest cost; (iv) amortization of deferred finance costs and other related expenses; (v) equity/ (loss) in net earnings of affiliates, net of dividends received; (vi) payments for dry dock and special survey costs; (vii) impairment charges; (viii) gain on sale of assets; (ix) gain/ (loss) on debt repayment; (x) stock- based compensation and (xi) transaction costs. Navios Acquisition believes that EBITDA and Adjusted EBITDA are each 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 an analytical tool, and should not be considered in isolation or as a substitute for the analysis of Navios Acquisition’s results as reported under U.S. GAAP. Some of these limitations are: (i) 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
Core fleet
Owned Vessels of Navios Acquisition
Nave Polaris		Chemical Tanker	2011		25,145
Nave Cosmos		Chemical Tanker	2010		25,130
Star N		MR1 Product Tanker	2009		37,836
Hector N		MR1 Product Tanker	2008		38,402
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 Estella		LR1 Product Tanker	2012		75,000
Nave Andromeda		LR1 Product Tanker	2011		75,000
Nave Neutrino		VLCC	2003		298,287
Nave Celeste		VLCC	2003		298,717
Nave Photon		VLCC	2008		297,395
Nave Spherical		VLCC	2009		297,188
Nave Galactic		VLCC	2009		297,168
Nave Quasar		VLCC	2010		297,376
Nave Synergy		VLCC	2010	299,973
Nave Constellation		VLCC	2010		298,000
Nave Universe		VLCC	2011		297,066
Nave Buena Suerte		VLCC	2011		297,491
Baghdad*		VLCC	2020		313,433
Vessels to be delivered*
TBN II		VLCC	Expected Q1 2021		310,000
TBN III		VLCC	Expected Q3 2021		310,000
TBN IV		VLCC	Expected Q2 2022		310,000
Owned Vessels of Navios Maritime Midstream Partners
Perseus N^		MR1 Product Tanker	2009		36,264
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 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 Ariadne		LR1 Product Tanker	2007		74,671
Nave Cielo		LR1 Product Tanker	2007		74,671
Lumen N		LR1 Product Tanker	2008		63,599
Aurora N		LR1 Product Tanker	2008		63,495
Owned Vessels held for sale
Acrux N		Container	2010		23,338
Allegro N		Container	2014		46,999
Fleur N		Container	2012		41,130
Ete N		Container	2012		41,139
Spectrum N		Container	2009		34,333
Solstice N		Container	2007		44,023
Vita N		Container	2010		23,359
*   Bareboat chartered-in vessels with purchase option.
^   Under process of completion of documentation.