Monaco - May 06, 2020
- 26.9% increase in Q1 2020 revenue to $97.9 million
• Net Cash from Operating Activities
- $30.5 million in Q1 2020
• Adjusted EBITDA
- 36.3% increase in Q1 2020 Adjusted EBITDA to $56.2 m.
• Liquidation of Navios Europe II Inc. expected in Q2 2020
• Returning capital to stockholders:
- Quarterly dividend: $0.30 per share
Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition stated, “While the humanitarian crises caused by the Pandemic has been heartbreaking, we have also been strengthened by the courage and compassion of the first responders, particularly the many dedicated heath care workers. At any given time, our seagoing vessels carry over 1,000 people. Keeping these people safe and these vessels moving in and out of quarantined countries, with ever-changing rules and problems, requires the immediate input of many disciplines. I am proud of the members of the Navios family as they have shown admirable resilience during this unprecedented time of uncertainty. We have taken the necessary measures to ensure safety of our people while keeping our fleet functioning.”?
Angeliki Frangou continued, “I am pleased with our results for the first quarter of 2020. During the quarter, Navios Acquisition recorded revenue of $97.9 million and adjusted EBITDA of $56.2 million, representing increases of about 27% and 36%, respectively, over the first quarter of 2019. Navios Acquisition also recorded adjusted net income of $14.9 million, or $0.95 per share, for the first quarter of 2020. We declared a quarterly distribution of $0.30 per share for the first quarter of 2020.”?
HIGHLIGHTS — RECENT DEVELOPMENTS
Quarterly dividend: $0.30 per share
On April 29, 2020, the Board of Directors declared a quarterly cash dividend in respect of the first quarter of 2020 of $0.30 per share of common stock, which will be paid on July 9, 2020 to stockholders of record as of June 3, 2020. 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.
In April 2020, Navios Acquisition entered into indicative terms sheets for contemplated sale and leaseback arrangements of $76.7 million, with unrelated third parties in order to refinance $54.0 million outstanding on the existing facilities on four product tankers. The agreements will be repaid through periods ranging from four to seven years in consecutive quarterly installments of up to $1.9 million each, with a purchase obligation of $28.7 million to be repaid on the last repayment date. The agreements bear interest at LIBOR plus a margin ranging from 390 to 410 bps per annum, depending on the vessel financed. No assurance can be provided that definitive agreements will be executed or that the financing will be consummated in whole or in part.
Liquidation of Navios Europe II Inc.
On April 21, 2020, Navios Europe II agreed with the lender to fully release the liabilities under the junior participating loan facility for $5.0 million. Navios Europe II owns seven container vessels and seven dry bulk vessels. The structure is expected to be liquidated during the second quarter of 2020 and Navios Acquisition expects to receive cash and steel value. The Company’s Board of Directors formed a Special Committee of independent and disinterested directors to consider and approve the liquidation. Vessels to be acquired will be held for sale.
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 May 5, 2020, since the commencement of the program, Navios Acquisition has issued 426,628 shares of common stock and received net proceeds of $2.8 million.
As of April 30, 2020, Navios Acquisition’s fleet consisted of a total of 46 vessels, of which 13 are very large crude carriers (“VLCCs”) (including three bareboat chartered-in VLCCs expected to be delivered in each of the fourth quarter of 2020, and the first and the second quarters of 2021), 31 are product tankers and two are chemical tankers.
Currently, Navios Acquisition has contracted 83.4% of its available days on a charter-out basis for the remaining nine month period of 2020. The average base contractual net daily charter-out rate for the 70.5% of available days that are contracted on base rate and/or base rate with profit sharing arrangements is expected to be $19,578 for the remaining nine month period of 2020.
Navios Maritime Acquisition Corporation press release