Why NNA’s bottom line dipped due to one-time items

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Nov. 20 2020, Updated 12:11 p.m. ET

Navios Maritime Acquisition’s EBITDA

In 2Q14, Navios Maritime Acquisition (NNA) increased its EBITDA (earnings before interest, tax, depreciation, and amortization) by $5.6 million, to $35 million from $29.4 million in the corresponding period last year. This excludes the expense of $1.5 million for non-cash stock-based compensation and a $0.9 million loss on the sale of its vessel, Shinyo Splendor.

 

The rise in EBITDA was due to a $15.2 million increase in revenue and $0.3 million increase in other income, along with a $0.7 million increase in time charter expenses, an $8 million increase in management fees, and a $1.1 million increase in general and administrative expenses.

For the first half of 2014, NNA’s EBITDA stood at $142 million due to its disciplined growth rate. Almost $12 million of the incremental annualized EBITDA will come from the deliveries of four vessels later in 2014.

NNA’s net income

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Net loss for the quarter stood at $1.5 million, resulting from $1.6 million of accelerated amortization of the intangible assets associated with the charter-out contracts of two MR2 tanker vessels. A $1.5 million non-cash stock-based compensation expense also had a negative impact on the second quarter net loss. Excluding these one-time items, adjusted net loss for the quarter stood at $0.4 million.

Teekay Tankers Ltd. (TNK), Tsakos Energy Navigation Ltd. (TNP), Scorpio Tankers Inc. (STNG), and Capital Product Partners (CPLP) are the industry peers. Many of these companies are part of the Guggenheim Shipping ETF (SEA).

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