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Navios Maritime Acquisition Corporation Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2014

MONACO -- (Marketwired) -- 08/19/14 -- Navios Maritime Acquisition Corporation (NYSE: NNA)

  • 32.3% increase in Q2 Revenue to $62.2 million
  • 19.1% increase in Q2 Adjusted EBITDA to $35.0 million
  • Quarterly dividend of $0.05 per share
  • Delivery of two VLCCs

Navios Maritime Acquisition Corporation ("Navios Acquisition") (NYSE: NNA), an owner and operator of tanker vessels, reported its financial results today for the second quarter and six months ended June 30, 2014.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition, stated, "I am pleased with our results -- we grew revenue by 32.3% and adjusted EBITDA by 19.1%. As a result, we declared a quarterly dividend of $0.05 per share, representing a yield of almost 6%."

Angeliki Frangou continued, "Navios Acquisition has a modern fleet of 44 owned vessels with an average age of 4.8 years. We have patiently built this company to be one of the largest publicly listed tanker companies, using our network of industry relationships and taking advantage of distressed deals and opportune moments. After studying the market for a number of years, we acquired 15 vessels in 2013, including four VLCCs, in addition to two VLCCs acquired in 2014."

HIGHLIGHTS - RECENT DEVELOPMENTS

Dividend of $0.05 per share of common stock

On August 11, 2014, the Board of Directors declared a quarterly cash dividend in respect of the second quarter of 2014 of $0.05 per share of common stock payable on October 2, 2014 to stockholders of record as of September 17, 2014.

Vessel Deliveries

On June 16, 2014, Navios Acquisition took delivery of the Nave Neutrino, a 2003-built VLCC of 298,287 dwt, from an unaffiliated third party, for a purchase price of $43.5 million. The Nave Neutrino has been chartered out to a quality counterparty for six months at a rate based on an adjusted BITR TD3 index with an option for an additional six month period.

On July 21, 2014, Navios Acquisition took delivery of the Nave Electron, a 2002-built VLCC of 305,178 dwt, from an unaffiliated third party, for a purchase price of $41.0 million. The Nave Electron has been chartered out to a quality counterparty for minimum one year at a rate based on charterer's VLCC pool earnings. The Nave Electron has been provided as collateral under the 8.125% First Priority Ship Mortgage Notes due 2021, in place of the Nave Dorado and the Nave Lucida (MR2 product tankers). As a result, approximately $5.5 million of value has been added to the collateral package.

Credit Facility

In July 2014, Navios Acquisition entered into a term-loan facility with Deutsche Bank AG Filiale Deutschlandgeschäft and Skandinaviska Enskilda Banken AB to (i) refinance $44.4 million of equal amount of the existing outstanding term loan of Deutsche Bank AG and to (ii) borrow an additional amount of up to $85.8 million to finance the purchase price of one VLCC, the Nave Neutrino, and four MR2 product tankers (the Nave Dorado, the Nave Lucida and two MR2 product tankers expected to be delivered in the third and fourth quarter of 2014, the Nave Pyxis and the Nave Sextans). The additional amount secured, bears interest at LIBOR plus 310 bps per annum and has an average amortization profile of approximately nine years.

Vessel Employment

In August 2014, charterers exercised their option to extend the existing charter of one LR1 Product Tanker, Nave Andromeda, for an additional 12 month period, at an increased rate of $13,000 net, plus 100% profit up to $16,000 and 50% profit sharing above $16,000.

In July 2014, Navios Acquisition chartered out the MR2 Product Tanker, the Buddy, for a period of four months at a rate $13,825 net per day.

In July 2014, Navios Acquisition agreed to extend the existing charter for two chemical product tankers, the Nave Cosmos and the Nave Polaris, for an additional 12 month period, at a rate based upon pool earnings.

In June 2014, Navios Acquisition agreed to extend the existing charter of one MR2 Product Tanker, the Nave Capella, for an additional six month period, at a rate $13,825 net per day.

Navios Acquisition currently owns 44 vessels, 11 VLCCs, 29 product tankers and four chemical tankers of which, 38 vessels are currently on-the-water with the remaining six vessels, all newbuildings, still to be delivered.

Time Charter Coverage

As of August 19, 2014, Navios Acquisition had contracted 96.7%, 52.3% and 21.7% of its available days on a charter-out basis for 2014, 2015 and 2016, respectively, equivalent to $229.9 million, $162.3 million and $108.4 million of expected revenue, respectively. The average contractual daily charter-out rate for the fleet is $18,857, $21,853 and $30,989 for 2014, 2015 and 2016, respectively.

FINANCIAL HIGHLIGHTS

For the following results and the selected financial data presented herein, Navios Acquisition has compiled consolidated statement of operations for the three months and six months ended June 30, 2014 and 2013. The quarterly information for 2014 and 2013 was derived from the unaudited condensed consolidated financial statements for the respective periods.


                         Three Month  Three Month   Six Month    Six Month
                            Period       Period       Period       Period
                            ended        ended        ended        ended
                          June 30,     June 30,     June 30,      June 30,
(Expressed in thousands      2014         2013         2014         2013
 of U.S. dollars)        (unaudited)  (unaudited)  (unaudited)  (unaudited)
                         -----------  -----------  -----------  -----------
Revenue                  $    62,242  $    47,057  $   123,211  $    91,229
Adjusted EBITDA(1)       $    34,972  $    29,354  $    70,850  $    57,306
Net Loss                 $    (2,804) $    (1,536) $   (15,622) $      (801)
Adjusted Net
 (Loss)/Income(1)        $      (442) $        83  $     1,060  $       818
Net Loss per share
 (basic and diluted)     $     (0.02) $     (0.02) $     (0.11) $     (0.01)
Adjusted Net
 (Loss)/Income per share
 (basic and diluted) (1) $     (0.00) $      0.00  $      0.00  $      0.01

(1) Adjusted EBITDA, Adjusted Net Loss and Adjusted Net Loss per share (basic and diluted) for the three month period ended June 30, 2014 in this document exclude stock-based compensation of $1.5 million, and loss on sale of vessel of $0.9 million.

Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per share (basic and diluted) for the six month period ended June 30, 2014 in this document exclude, stock-based compensation of $2.9 million, impairment loss and loss on sale of vessel of $12.6 million and $1.2 million in connection with the change in fair value of other assets.

Adjusted Net Income and Adjusted Net Income per share (basic and diluted) for the three and the six month period ended June 30, 2013, exclude $1.6 million of accelerated amortization of the intangible assets associated with charter-out contracts of two MR2 product tanker vessels, following charterer's default.

Adjusted EBITDA, Adjusted Net (Loss) /Income and Adjusted Net (Loss)/Income per share 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 Adjusted EBITDA).

Three month periods ended June 30, 2014 and 2013

Revenue for the three month period ended June 30, 2014 increased by $15.2 million or 32.3% to $62.2 million, as compared to $47.1 million for the same period in 2013. The increase was mainly attributable to the deliveries of 10 MR2 product tankers, two chemical tankers and five VLCCs during the period from April 1, 2013 until June 30, 2014. As a result of these vessel deliveries, available days of the fleet increased to 3,288 days for the three month period ended June 30, 2014, as compared to 2,095 days for the three month period ended June 30, 2013. TCE decreased to $18,508 for the three month period ended June 30, 2014, from $22,155 for the three month period ended June 30, 2013 due to the fact that the fleet on-the-water in the second quarter of 2014 included more smaller tankers (mainly MR2s), which are fixed at lower rates, compared to the fleet in the second quarter of 2013.

Excluding the effect of $1.5 million for non-cash stock-based compensation expense and $0.9 million loss on the sale of Shinyo Splendor, Adjusted EBITDA for the three month period ended June 30, 2014 increased by $5.6 million to $35.0 million from $29.4 million in the three month period ended June 30, 2013. The increase in Adjusted EBITDA was due to: (a) $15.2 million increase in revenue; and (b) $0.3 million increase in Other income/(expense), net, partially mitigated by: (i) a $0.7 million increase in time charter expenses; (ii) an $8.0 million increase in management fees; and (iii) a $1.1 million increase in general and administrative expenses.

Net loss for the three month period ended June 30, 2014, amounting to $2.8 million, was adversely affected by $0.9 million loss related to the sale of vessel, the Shinyo Splendor and a $1.5 million non-cash stock- based compensation expense. Net loss for the three month period ended June 30, 2013, amounting to $1.5 million was adversely affected by $1.6 million of accelerated amortization of the intangible assets associated with charter-out contracts of two MR2 tanker vessels. Excluding these items, Adjusted Net loss for the three month period ended June 30, 2014, amounted to $0.4 million compared to a $0.1 million income, for the three month period ended June 30, 2013. The increase in Adjusted Net loss by approximately $0.5 million was due to: (a) an $2.4 million increase in depreciation and amortization due to the acquisitions of the vessels described above; and (b) a $4.1 million increase in interest expense and finance cost net; partially mitigated by (i) a $0.3 million decrease in direct vessel expenses; (ii) an increase of $5.6 million in Adjusted EBITDA; and (iii) a $0.1 million increase in interest income

Six month periods ended June 30, 2014 and 2013

Revenue for the six month period ended June 30, 2014 increased by $32.0 million or 35.1% to $123.2 million, as compared to $91.2 million for the same period in 2013. The increase was mainly attributable to the deliveries of 13 MR2 product tankers, two chemical tankers and five VLCCs during the period from January 1, 2013 until June 30, 2014. As a result of these vessel acquisitions, available days of the fleet increased to 6,367 days for the six month period ended June 30, 2014, as compared to 3,927 days for the six month period ended June 30, 2013. TCE decreased to $19,009 for the six month period ended June 30, 2014, from $22,887 for the six month period ended June 30, 2013 due to the fact that the fleet on-the-water in the first half of 2014 included more smaller tankers (mainly MR2s), which are fixed at lower rates, compared to the fleet in the first half of 2013.

Excluding the impact of $2.9 million for non-cash stock-based compensation expense, a $12.6 million non-cash impairment loss and loss on sale of vessel recognized for one of our VLCCs sold in May 2014 and a $1.2 million non-cash fair value loss related to other assets, Adjusted EBITDA for the six month period ended June 30, 2014 increased by $13.5 million to $70.8 million from $57.3 million in the six month period ended June 30, 2013. The increase in Adjusted EBITDA was due to: (a) $32.0 million increase in revenue; and (b) $0.7 million increase in Other income/ (expense), net, partially mitigated by: (i) a $16.2 million increase in management fees; (ii) a $2.2 million increase in general and administrative expenses; and (iii) an $0.8 million increase in time charter expenses

Net loss for the six month period ended June 30, 2014, amounted to $15.6 million, was adversely affected by a $12.6 million non-cash impairment loss and loss on sale of vessel recognized for one of our VLCCs sold in May 2014, a $1.2 million non-cash fair value loss related to other assets and a $2.9 million non-cash stock-based compensation expense. Net loss for the six month period ended June 30, 2013, amounting to $0.8 million was adversely affected by $1.6 million of accelerated amortization of the intangible assets associated with charter-out contracts of two MR2 tanker vessels. Excluding the items described above, Adjusted Net income for the six month period ended June 30, 2014, amounted to $1.1 million, compared to $0.8 million for the six month period ended June 30, 2013. The increase in Adjusted Net income by approximately $0.2 million was due to an increase of: (i) $13.5 million in Adjusted EBITDA; and (ii) $0.3 million decrease in direct vessel expenses mitigated by: (a) $5.7 million increase in depreciation and amortization due to the acquisitions of the vessels described above; and (b) $7.9 million increase in interest expense and finance cost net.

Fleet Employment Profile

The following table reflects certain key indicators of the performance of Navios Acquisition and its core fleet for the three and six months ended June 30, 2014 and 2013.


                         Three month period ended   Six month period ended
                                 June 30,                  June 30,
                             2014         2013         2014         2013
                         (unaudited)  (unaudited)  (unaudited)  (unaudited)
                         -----------  -----------  -----------  -----------
FLEET DATA
Available days(1)              3,288        2,095        6,367        3,927
Operating days(2)              3,280        2,094        6,349        3,924
Fleet utilization(3)            99.8%         100%        99.7%        99.9%
Vessels operating at
 period end                       37           25           37           25
AVERAGE DAILY RESULTS
Time Charter Equivalent
 per day(4)              $    18,508  $    22,155  $    19,009  $    22,887

(1) Available days for the fleet represent total calendar days the vessels were in Navios Acquisition's possession for the relevant period after subtracting off-hire days associated with scheduled repairs, drydockings 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. The shipping industry uses operating days to measure the aggregate number of days in a relevant period during which vessels actually generate revenues.

(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. The shipping industry uses fleet utilization to measure a company's efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off hire for reasons other than scheduled repairs, drydockings or special surveys.

(4) Time Charter Equivalent Rate: Time Charter Equivalent Rate 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 Time Charter Equivalent Rate is a standard shipping industry performance measure used primarily to present the actual daily earnings generated by vessels on 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 today, Tuesday August 19, 2014 at 8:30 am ET, at which time Navios Acquisition's senior management will provide highlights and commentary on the results of the second quarter and six months ended June 30, 2014.

US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 6558 2614

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: +1.800.585.8367
International Replay Dial In: +1.404.537.3406
Conference ID: 6558 2614

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 in 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 Navios Acquisition's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "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 time charters. 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 known and unknown risks and are based upon a number of assumptions and estimates which 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 to changes in the demand for crude oil, product and chemical tanker vessels, competitive factors in the market in which Navios Acquisition operates; risks associated with operations outside the United States; and other factors listed from time to time in the Navios Acquisition's filings with the Securities and Exchange Commission. 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.



                                                                  EXHIBIT I
                  NAVIOS MARITIME ACQUISITION CORPORATION
                   CONDENSED CONSOLIDATED BALANCE SHEETS
        (Expressed in thousands of U.S. Dollars - except share data)

                                                June 30,
                                                  2014        December 31,
                                               (unaudited)        2013
                                             --------------  --------------

ASSETS
Current assets
Cash and cash equivalents                    $       61,288  $       82,835
Restricted cash                                       8,340          24,962
Accounts receivable, net                             11,502           8,441
Prepaid expenses and other current assets             5,514           4,563
                                             --------------  --------------
Total current assets                                 86,644         120,801
                                             --------------  --------------

Vessels, net                                      1,539,850       1,353,131
Deposits for vessels acquisitions                    80,258         100,112
Deferred finance costs, net                          24,894          23,246
Goodwill                                              1,579           1,579
Intangible assets-other than goodwill                37,515          40,171
Other long-term assets                                1,304           5,533
Deferred dry dock and special survey costs,
 net                                                  3,053           4,678
Investment in affiliates                              4,893           4,750
Loan receivable from affiliate                        6,102           2,660
                                             --------------  --------------
Total non-current assets                          1,699,448       1,535,860
                                             --------------  --------------

Total assets                                 $    1,786,092  $    1,656,661
                                             ==============  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable                             $        2,205  $        1,577
Dividend payable                                      7,967           7,220
Accrued expenses                                     11,394          11,985
Due to related parties, short term                    7,100           2,848
Deferred revenue                                      6,741           7,056
Current portion of long-term debt                    38,781          34,714
                                             --------------  --------------
Total current liabilities                            74,188          65,400
                                             --------------  --------------

Long-term debt, net of current portion and
 premium                                          1,213,394       1,119,734
Due to related parties, long term                     7,169           5,144
Unfavorable lease terms                               3,219           3,561
                                             --------------  --------------
Total non-current liabilities                     1,223,782       1,128,439
                                             --------------  --------------

Total liabilities                            $    1,297,970  $    1,193,839
                                             ==============  ==============

Commitments and contingencies                            --              --
Series D Convertible Preferred stock 1,200
 shares issued and outstanding with $12,000
 redemption amount as of each of June 30,
 2014 and December 31, 2013                          12,000          12,000

Stockholders' equity
Preferred stock, $0.0001 par value;
 10,000,000 shares authorized; 4,540 issued
 and outstanding as of each of June 30, 2014
 and December 31, 2013                                   --              --
Common stock, $0.0001 par value; 250,000,000
 shares authorized; 151,664,942 and
 136,714,942 issued and outstanding as of
 each of June 30, 2014 and December 31,
 2013, respectively                                      15              13
Additional paid-in capital                          571,123         530,203
Accumulated deficit                                 (95,016)        (79,394)
                                             --------------  --------------
Total stockholders' equity                          476,122         450,822
                                             --------------  --------------

Total liabilities and stockholders' equity   $    1,786,092  $    1,656,661
                                             ==============  ==============



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

                       For the
                        Three     For the Three   For the Six   For the Six
                       Months         Months        Months        Months
                        Ended         Ended          Ended         Ended
                        2014           2013          2014          2013
                     (unaudited)   (unaudited)    (unaudited)   (unaudited)
                    ------------  -------------  ------------  ------------
Revenue             $     62,242  $      47,057  $    123,211  $     91,229
Time charter and
 voyage expenses          (1,392)          (647)       (2,178)       (1,357)
Direct vessel
 expenses                   (477)          (762)       (1,213)       (1,524)
Management fees          (23,787)       (15,826)      (46,087)      (29,924)
General and
 administrative
 expenses                 (3,726)        (1,123)       (7,312)       (2,207)
Depreciation and
 amortization            (16,959)       (16,123)      (33,597)      (29,453)
Impairment loss and
 loss on sale of
 vessel                     (904)            --       (12,594)           --
Interest income              169             43           279           255
Interest expenses
 and finance cost,
 net                     (18,147)       (14,048)      (35,259)      (27,385)
Change in fair
 value of other
 assets                       --             --        (1,188)           --
Other income/
 (expense), net              177           (107)          316          (435)
                    ------------  -------------  ------------  ------------
Net loss            $     (2,804) $      (1,536) $    (15,622) $       (801)
                    ============  =============  ============  ============

Net loss
 attributable to
 common
 shareholders             (2,953)        (1,441)      (15,340)         (821)
                    ============  =============  ============  ============

Net loss per share,
 basic              $      (0.02) $       (0.02) $      (0.11) $      (0.01)
                    ============  =============  ============  ============

Weighted average
 number of shares,
 basic               149,564,942     90,215,506   145,352,511    72,143,198
                    ============  =============  ============  ============

Net loss per share,
 diluted            $      (0.02) $       (0.02) $      (0.11) $      (0.01)
                    ============  =============  ============  ============

Weighted average
 number of shares,
 diluted             149,564,942     90,215,506   145,352,511    72,143,198
                    ============  =============  ============  ============



                  NAVIOS MARITIME ACQUISITION CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                  (Expressed in thousands of U.S. dollars)

                                               For the Six     For the Six
                                                 Months          Months
                                                Ended June   Ended June 30,
                                                30, 2014          2013
                                               (unaudited)     (unaudited)
                                             --------------  --------------
Operating Activities
Net loss                                     $      (15,622) $         (801)
Adjustments to reconcile net loss to net
 cash provided by operating activities:
Depreciation and amortization                        33,597          29,453
Amortization and write-off of deferred
 finance fees and bond premium                        1,496           1,297
Amortization of deferred dry dock and
 special survey costs                                 1,213           1,524
Stock-based compensation                              2,900              --
Impairment loss and loss on sale of vessel           12,594              --
Change in fair value of other assets                  1,188              --
Changes in operating assets and liabilities:
Increase in prepaid expenses and other
 current assets                                      (1,932)         (1,579)
Increase in accounts receivable                      (3,061)           (995)
Decrease/(increase) in restricted cash                  232            (855)
Decrease in other long term assets                    2,297             449
Increase/(decrease) in accounts payable                 628            (452)
Decrease in accrued expenses                           (591)         (2,013)
Payments for dry dock and special survey
 costs                                                 (609)             --
Increase/(decrease) in due to related
 parties                                              4,014         (45,212)
(Decrease)/increase in deferred revenue                (315)            772
Decrease in other long term liabilities                  --            (137)
                                             --------------  --------------
Net cash provided by/(used in) operating
 activities                                  $       38,029  $      (18,549)
                                             --------------  --------------
Investing Activities
Acquisition of vessels                             (203,493)        (76,183)
Deposits for vessel acquisitions                    (21,104)        (33,217)
Decrease in restricted cash                              --           8,501
Net proceeds from sale of vessel                     18,315              --
Loan to affiliate                                    (2,831)             --
                                             --------------  --------------
Net cash used in investing activities        $     (209,113) $     (100,899)
                                             --------------  --------------
Financing Activities
Loan proceeds, net of deferred finance costs         53,113          64,708
Loan repayment to related party                          --         (35,000)
Loan repayments                                     (18,331)        (42,459)
Dividend paid                                       (15,520)         (6,635)
Payment to related party                                             (8,282)
Decrease in restricted cash                          16,390             668
Net proceeds from equity offering                    54,287         211,402
Proceeds from issuance of ship mortgage and
 senior notes, net of debt issuance costs
 and premium                                         59,598              --
                                             --------------  --------------
Net cash provided by financing activities    $      149,537  $      184,402
                                             --------------  --------------
Net (decrease)/ increase in cash and cash
 equivalents                                        (21,547)         64,954
Cash and cash equivalents, beginning of year         82,835          42,846
                                             --------------  --------------
Cash and cash equivalents, end of year       $       61,288  $      107,800
                                             ==============  ==============



                                                                  EXHIBIT II

     Reconciliation of Adjusted EBITDA to Net Cash provided by/(used in)
                             Operating Activities
                  (Expressed in thousands of U.S. dollars)

                                Three       Three
                                Month       Month     Six Month   Six Month
                                Period      Period      Period      Period
                                Ended       Ended       Ended       Ended
                               June 30,    June 30,    June 30,    June 30,
                                 2014        2013        2014        2013
                             (unaudited) (unaudited) (unaudited) (unaudited)
                             ----------- ----------- ----------- -----------

Net cash provided by/(used
 in) operating activities    $     9,166 $  (37,451) $    38,029 $  (18,549)
Net (decrease)/increase in
 operating assets                (1,556)        (52)       3,073       2,980
Net decrease/(increase) in
 operating liabilities            10,165      53,569     (3,736)      47,042
Net interest cost                 17,978      14,005      34,980      27,130
Deferred finance costs             (781)       (717)     (1,496)     (1,297)
                             ----------- ----------- ----------- -----------
Adjusted EBITDA(1)           $    34,972 $    29,354 $    70,850 $    57,306
                             =========== =========== =========== ===========

                             Three Month Three Month  Six Month   Six Month
                                Period      Period      Period      Period
                                Ended       Ended       Ended       Ended
                               June 30,    June 30,    June 30,    June 30,
                                 2014        2013        2014        2013
(1)                          (unaudited) (unaudited) (unaudited) (unaudited)


Net cash provided by/(used
 in) operating activities    $     9,166 $  (37,451) $    38,029 $  (18,549)
Net cash used in investing
 activities                  $  (50,174) $  (70,515) $ (209,113) $ (100,899)
Net cash (used in)/ provided
 by financing activities     $  (15,705) $   121,351 $   149,537 $   184,402

Disclosure of Non-GAAP Financial Measures

Adjusted EBITDA

Adjusted EBITDA for the six month period ended June 30, 2014 in this document represents, loss plus interest expense and finance cost plus depreciation and amortization and finance income, before stock-based compensation of $2.9 million, impairment loss and loss on sale of vessel of $12.6 million and $1.2 million in connection with the change in fair value of other assets. For the six months ended June 30, 2013, there were no corresponding losses or expenses.

Adjusted EBITDA for the three month period ended June 30, 2014 in this document represents, loss plus interest expense and finance cost plus depreciation and amortization and finance income, before stock-based compensation of $1.5 million, and loss on sale of vessel of $0.9 million. For the three months ended June 30, 2013, there were no corresponding losses or expenses.

Adjusted EBITDA is presented because Navios Acquisition believes that Adjusted EBITDA is a 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. Adjusted EBITDA is a "non-GAAP financial measure" and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity. While Adjusted EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of Adjusted EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.



                                                                 EXHIBIT III

Vessels                                  Type        Built/Delivery    DWT

                                                          Date
----------------------------------------------------------------------------
Owned Vessels
Nave Constellation                  Chemical Tanker       2013        45,281
Nave Universe                       Chemical Tanker       2013        45,513
Nave Polaris                        Chemical Tanker       2011        25,145
Nave Cosmos                         Chemical Tanker       2010        25,130
Nave Jupiter                      MR2 Product Tanker      2014        49,999
Bougainville                      MR2 Product Tanker      2013        50,626
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
Buddy                             MR2 Product Tanker      2009        50,470
Bull                              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 Lucida                       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 Estella                      LR1 Product Tanker      2012        75,000
Nave Andromeda                    LR1 Product Tanker      2011        75,000
Nave Ariadne                      LR1 Product Tanker      2007        74,671
Nave Cielo                        LR1 Product Tanker      2007        74,671
Nave Buena Suerte                        VLCC             2011       297,491
Shinyo Kieran                            VLCC             2011       297,066
Shinyo Saowalak                          VLCC             2010       298,000
Nave Quasar                              VLCC             2010       297,376
Nave Galactic                            VLCC             2009       297,168
Nave Celeste                             VLCC             2003       298,717
Nave Neutrino                            VLCC             2003       298,287
Nave Electron                            VLCC             2002       305,178
Shinyo Kannika                           VLCC             2001       287,175
Shinyo Ocean                             VLCC             2001       281,395
C. Dream                                 VLCC             2000       298,570
Owned Vessels to be Delivered
Nave Luminosity                           MR2            Q3 2014      50,000
Nave Pyxis                                MR2            Q3 2014      51,200
Nave Velocity                             MR2            Q4 2014      50,000
Nave Sextans                              MR2            Q4 2014      51,200
TBN                                       MR2            Q3 2015      51,200
TBN                                       MR2            Q4 2015      51,200


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