Navios Acquisition’s positive revenue and net income

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Positive revenue

With an expanding vessel base and increasing available days, Navios Maritime Acquisition (NNA) recorded a significant increase in revenue. The company’s bottom line generated profits. It was supported by a higher top line and well-managed expenses.

Continued growth

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Revenue

For 3Q14, NNA’s revenue recorded a 29.9% increase to $69.3 million—from $53.4 million in the same quarter last year. The increase was mainly led by the delivery of eight MR2 product tankers, two chemical tankers, and six Very Large Crude Carriers (or VLCCs).

The fleet’s available days increased to 3,476 days for the quarter—compared to 2,646 days for the same quarter last year. The fleet’s available days were supported by new vessels. The time charter equivalent is obtained by dividing net voyage revenue with round trip voyage duration in days. The time charter equivalent increased from $18,835 to $19,327.

Net income

NNA’s 3Q14 net income was $1.7 million—compared to a net loss of $4.1 million recorded in 3Q13. Adjusted net income for the quarter—excluding the adverse impact of $1.5 million non-cash, stock-based compensation—was $3.1 million for the quarter. NNA had a $1.7 million adjusted net loss in the same quarter last year.

The quarter was negatively impacted by a $2.5 million increase in depreciation and amortization. The increase was due to the vessel acquisitions and a $3.8 million increase in interest expense and finance costs.

EBITDA

Adjusted earnings before interest, tax, depreciation, and amortization (or EBITDA) for the quarter increased from $29.2 million to $39.7 million. This was excluding the effect of $1.5 million for non-cash, stock-based compensation expense. This was led by increased revenue and a decline in time charter expenses. Management fees and general and administrative expenses increased by $5.7 million and $1 million, respectively, due to increased vessels.

Other shipping companies include Teekay Tankers Ltd. (TNK), Tsakos Energy Navigation Ltd. (TNP), Scorpio Tankers Inc. (STNG), and Capital Product Partners (CPLP). TNP recorded revenue growth of 12.4% in latest quarter.

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