-- The Company reported a net loss for the quarter of $329.2 million or
$7.49 per weighted average diluted share as compared to a net income of
$34.1 million or $1.71 per weighted average diluted share for the fourth
quarter of 2007. The results for the fourth quarter of 2008 include a non-
cash adjustment of $40.2 million relating to the unrealized loss from the
valuation of interest rate swaps. Also included in the fourth quarter
results are adjustments related to the impairment charge recognized in the
current period to write-off the goodwill that resulted from Quintana's
acquisition ($335.4 million or $7.63 per weighted average diluted share),
the impairment loss recognized on the vessel Swift ($2.4 million or $0.05
per weighted average diluted share), the loss in value of the Company's
investment in Oceanaut Inc. due to the initiation of its liquidation ($11.0
million or $0.25 per weighted average diluted share) and the loss resulting
from the cancellation of a vessel purchase ($15.6 million or $0.36 per
weighted average diluted share);
-- Net income, excluding all the above items, for the quarter would
amount to $75.4 million or $1.71 per weighted average diluted share.
Year Ended December 31, 2008 Highlights:
-- For the year ended December 31, 2008, the Company reported a net loss
of $44.7 million or $1.23 per weighted average diluted share as compared to
a net income of $84.9 million or $4.25 per weighted average diluted share
for the year ended December 31, 2007. The results for the year ended
December 31, 2008 include a non-cash adjustment of $25.8 million relating
to the unrealized loss from the valuation of interest rate swaps. Also
included in the year ended December 31, 2008 results are adjustments
related to the impairment charge recognized in the year to write-off the
goodwill that resulted from Quintana's acquisition ($335.4 million or $9.06
per weighted average diluted share), the loss in value of the Company's
investment in Oceanaut Inc. due to the initiation of its liquidation ($11.0
million or $0.30 per weighted average diluted share), the impairment loss
recognized on the vessel Swift ($2.4 million or $0.06 per weighted average
diluted share) and the loss resulting from the cancellation of a vessel
purchase ($15.6 million or $0.42 per weighted average diluted share);
-- Net income, excluding all the above items, for the year would amount
to $345.5 million or $9.31 per weighted average diluted share.
Corporate Developments:
Credit Facilities Amendments and Covenant Waivers
On April 1, 2009, the Company announced that it has amended its Nordea Bank
Syndicated Facility and the Credit Suisse Bilateral Facility, as well as
secured all the appropriate covenant waivers for these credit facilities,
which are valid until January 2011. In particular, the amended terms of
each of the credit facilities contain financial covenants requiring the
Company to maintain minimum liquidity of $25.0 million, maintain a leverage
ratio based on book values of not greater than 70%, maintain a ratio of
EBITDA to gross interest of not less than 1.75:1.0 and maintain an
aggregate fair market value of vessels serving as collateral for each of
the loans at all times of not less than 65% of the outstanding principal
amount of the respective loan. Additionally, under the terms of the amended
Nordea Bank Syndicated Facility, the Company will also defer principal debt
repayments of $150.5 million originally scheduled for 2009 and 2010 to the
balloon payment at the end of the facility's term in 2016. During the
waiver and deferral periods, the applicable credit facility margins will
increase to 2.5% and 2.25%, for the Syndicated Facility and the Credit
Suisse Facility, respectively.
Equity Infusion
As part of the restructuring, entities affiliated with the Panayotides
family, the Company's major shareholders have injected $45.0 million in the
Company, which was applied against the balloon payment of the Nordea credit
facility due in 2016. In exchange for their contribution, the entities
received an aggregate of 25,714,286 Class A shares and 5,500,000 warrants,
with an exercise price of $3.50 per warrant. The shares, the warrants and
the shares issuable on exercise of the warrants will be subject to 12-month
lock-ups from March 31, 2009. The Company has the option to defer, again to
the balloon payment in 2016, additional principal debt repayments in an
amount of up to 100% of the equity contributed, meaning the $45.0 million
already received as well as any other equity infusion by the
above-mentioned entities during 2009 and 2010.
Dividend Suspension
In February 2009 the Company's Board of Directors decided to suspend its
dividend in light of the challenging conditions both in the freight market
and the financial environment. The suspension of dividend was effective for
the dividend of the fourth quarter of 2008. The decision is aimed at
preserving cash and enhancing the Company's liquidity and was considered to
be a precautionary measure in view of the disruptions arising between the
Company and some of its charters, as further discussed below.
Investment in Oceanaut Inc.
On April 6, 2009, Oceanaut announced that its shareholders approved its
dissolution and liquidation. As a result, the Company will receive
liquidating distributions in relation to the shares of common stock
included in the 625,000 of the 1,125,000 of the units purchased by the
Company in a private placement prior to the closing of Oceanaut's Initial
Public Offering in March 2007. The liquidating distributions will be
approximately $5.2 million ($8.26 per share of common stock) and they are
expected to be received on or about April 14, 2009. As of December 31,
2008, the Company has written down approximately $11.0 million of its
investment in Oceanaut to reflect the amount recoverable through the
liquidation process.
Status of Charters
Further to the charter status update provided by the Company on February
17th, 2009, the Company engaged in active discussions with the two
charterers that had unilaterally started paying approximately 50% of the
agreed upon hire on three of the Company's vessels. The discussions have
resulted in the following:
-- The Company has reached an agreement (effective as of January 26th,
2009) with the charterers of the MV "Kirmar", reducing the daily hire from
$105,000 per day gross to $49,000 per day net, while at the same time,
extending the duration of the charter by 24 months. Additionally, the
Company, during the full revised charter party period, as part of a profit
sharing agreement, is entitled to receive all daily hire proceeds in excess
of $59,000 net. Lastly, the Company has received a sum of $15.0 million,
serving as amortizing security for the performance of the amended terms of
the charter party.
-- The Company, as of today and after having taken all prudent and
necessary actions, has received payment for all outstanding hire, as per
the terms of the relevant charter parties, from the charterer of the other
two vessels mentioned in the February press release.
The Company continues to actively monitor the status of its counterparties
and strives to ensure that all actions taken maximize cash flow security
and preservation. Currently, the Company's time charter coverage
approximates 66.2% and 49.8% for the years ending December 31, 2009 and
2010, respectively.
Fleet Developments:
Sale of vessel
Based on a Memorandum of Agreement dated February 20, 2009, the M/V Swift,
a Handymax vessel of 37,687 dwt built in 1984 was sold for net proceeds of
approximately $3.7 million. As of December 31, 2008, the vessel's value was
impaired and written down to her fair value, which approximated her sale
proceeds. The vessel was delivered to her new owners on March 16, 2009.
Following the sale of the vessel, the Company repaid an amount of $4.6
million of its Nordea Loan.
Acquisition of vessel
On December 26, 2008, Excel Maritime has taken delivery of the newbuild
Capesize vessel M/V Sandra from the Imabari Shipyard in Japan. The vessel
has a carrying capacity of 180,000 dwt and has been fixed under two time
charters through May 2016.
Cancellation of vessel purchase
In December 2008, the Company successfully cancelled its obligation to
purchase the 2002 built Supramax vessel M/V "Medi Cebu" with a carrying
capacity of 52,464 dwt. Excel had agreed to acquire this vessel for $72.5
million in the event that Oceanaut would not finalize its agreement to
purchase this vessel by October 31st, 2008. In connection with this
cancellation, the Company has agreed to forfeit to the owners of the Medi
Cebu of the deposit of $7.25 million made by the Company in connection with
the proposed purchase and to issue 1,100,000 Excel Class A common shares to
a company nominated by the sellers. The Company has an exclusive option to
purchase the vessel, charter free, for the amount of $25.71 million until
December 31, 2009.
Management Commentary:
Lefteris Papatrifon, Chief Financial Officer of Excel, stated, "During the
fourth quarter of 2008, we experienced a severe deterioration of market
fundamentals mainly caused by an almost unprecedented global economic
crisis. This had a direct effect on our business and profitability but in
no means has it affected our long term strategic plans. Our balanced fleet
deployment strategy and quality charters have cushioned the Company from
the fluctuations experienced in the daily charter hire rates and have
allowed us to continue generating strong cash flows. The recent
restructuring of our loans by our banks together with the equity infusion
by our major shareholders is solid proof of confidence for the Company and
its long term prospects. This confidence and support has provided
management with the necessary financial and psychological tools to
successfully navigate in a potentially difficult market environment. All of
us here at Excel are committed to continue working hard in order to retain
our Company as a leader in the dry bulk space and to seek to ensure long
term shareholder value creation."
Fourth Quarter 2008 Results:
The Company reported a net loss for the quarter of $329.2 million or $7.49
per weighted average diluted share as compared to a net income of $34.1
million or $1.71 per weighted average diluted share for the fourth quarter
of 2007. The results for the fourth quarter of 2008 include a non-cash
adjustment of $40.2 million relating to the unrealized loss from the
valuation of interest rate swaps. Also included in the fourth quarter
results are adjustments related to the impairment charge recognized in the
current period to write-off the goodwill that resulted from Quintana's
acquisition ($335.4 million or $7.63 per weighted average diluted share),
the impairment loss recognized on the vessel Swift ($2.4 million or $0.05
per weighted average diluted share), the loss in value of the Company's
investment in Oceanaut Inc. due to the initiation of its liquidation ($11.0
million or $0.25 per weighted average diluted share) and the loss resulting
from the cancellation of a vessel purchase ($15.6 million or $0.36 per
weighted average diluted share).
Net income, excluding all the above items, for the quarter would amount to
$75.4 million or $1.71 per weighted average diluted share. Included in the
above adjusted net income are also the amortization of favorable and
unfavorable time charters that were fair valued upon acquiring Quintana
amounting to an income of $68.9 million ($1.6 per weighted average diluted
share) and the amortization of stock based compensation expense of $1.9
million ($0.04 per weighted average diluted share).
Revenues for the fourth quarter of 2008 amounted to $189.2 million as
compared to $60.9 million for the same period in 2007, an increase of
approximately 210.7%. Included in revenues for the fourth quarter of 2008
are $78.8 million of non-cash revenues relating to the amortization of
unfavorable time charters that were fair valued upon acquiring Quintana.
There were no such non-cash revenue adjustments recorded in the
corresponding period in 2007.
An average of 47.1 vessels were operated during the fourth quarter of 2008
earning a blended average time charter equivalent rate of $23,207 per day,
compared to an average of 16.5 vessels operated during the fourth quarter
of 2007 earning a blended average time charter equivalent rate of $38,528
per day. Please refer to a subsequent section of this Press Release for a
calculation of the TCE.
Adjusted EBITDA for the fourth quarter of 2008 was $54.7 million compared
to $43.4 million for the fourth quarter of 2007, an increase of
approximately 26.0%. Please refer to a subsequent section of this Press
Release for a reconciliation of adjusted EBITDA to Net Income.
Twelve Months to December 31, 2008
For the year ended December 31, 2008, the Company reported a net loss of
$44.7 million or $1.23 per weighted average diluted share as compared to a
net income of $84.9 million or $4.25 per weighted average diluted share for
the year ended December 31, 2007. The results for the year ended December
31, 2008 include a non-cash adjustment of $25.8 million relating to the
unrealized loss from the valuation of interest rate swaps. Also included in
the year ended December 31, 2008 results are adjustments related to the
impairment charge recognized in the year to write-off the goodwill that
resulted from Quintana's acquisition ($335.4 million or $9.06 per weighted
average diluted share), the loss in value of the Company's investment in
Oceanaut Inc. due to the initiation of its liquidation ($11.0 million or
$0.30 per weighted average diluted share), the impairment loss recognized
on the vessel Swift ($2.4 million or $0.06 per weighted average diluted
share) and the loss resulting from the cancellation of a vessel purchase
($15.6 million or $0.42 per weighted average diluted share).
Net income, excluding all the above items, for the year would amount to
$345.5 million or $9.31 per weighted average diluted share. Included in the
above adjusted net income are also the amortization of favorable and
unfavorable time charters that were fair valued upon acquiring Quintana
amounting to an income of $205.5 million ($5.55 per weighted average
diluted share) and the amortization of stock based compensation expense of
$8.6 million ($0.23 per weighted average diluted share).
Revenues for the year ended December 31, 2008 amounted to $696.1 million as
compared to $177.5 million for the same period in 2007, an increase of
292.2%. Included in revenues for the same period of 2008 is a non-cash time
charter amortization of $234.0 million, relating to the amortization of
unfavorable time charters that were fair valued upon acquiring Quintana.
There were no such non-cash revenues recorded in the corresponding period
in 2007.
An average of 38.6 vessels were operated during the year ended December 31,
2008 earning a blended average time charter equivalent rate of $31,291 per
day, compared to an average of 16.5 vessels operated during the same period
of 2007 earning a blended average time charter equivalent rate of $28,942
per day. Please refer to a subsequent section of this Press Release for a
calculation of the TCE.
Adjusted EBITDA for the year ended December 31, 2008 was $308.0 million
compared to $119.3 million for the year ended December 31, 2007, an
increase of approximately 158.2%. Please refer to a subsequent section of
this Press Release for a reconciliation of adjusted EBITDA to Net Income.
Conference Call Details:
Tomorrow April 9, 2009 at 10:00 A.M. EDT, the Company's management will
host a conference call to discuss the results.
Participants should dial into the call 10 minutes before the scheduled time
using the following numbers: 1 866 819 7111 (US Toll Free Dial In), 0800
953 0329 (UK Toll Free Dial In) or +44 (0)1452 542 301 (Standard
International Dial In). Please quote "Excel Maritime" to the operator.
A telephonic replay of the conference call will be available until April
16, 2009 by dialing 1 866 247 4222 (US Toll Free Dial In), 0800 953 1533
(UK Toll Free Dial In) or +44 (0)1452 550 000 (Standard International Dial
In). Access Code: 1838801#
Slides and Audio Webcast:
There will also be a live, and then archived, webcast of the conference
call, available through Excel Maritime Carriers' website
(www.excelmaritime.com). Participants for the live webcast should register
on the website approximately 10 minutes prior to the start of the webcast.
- Financial and Other Financial Data Follow -
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATION
FOR THE THREE MONTHS ENDED DECEMBER 31, 2007 AND 2008
(Expressed in thousands of U.S. Dollars, except for share
and per share data)
Fourth Fourth
Quarter Quarter
2007 2008
---------- ----------
REVENUES:
Voyage revenues 60,690 110,145
Time charter amortization - 78,816
Revenue from managing related party vessels 226 192
---------- ----------
60,916 189,153
---------- ----------
EXPENSES
Voyage expenses 3,722 10,950
Charter hire expense - 8,418
Charter hire amortization - 9,922
Commissions to a related party 755 659
Vessel operating expenses 8,786 21,976
Depreciation 6,996 30,317
Amortization of deferred dry-docking and special
survey costs 1,299 2,265
General and administrative expenses 3,954 7,762
---------- ----------
25,512 92,269
---------- ----------
Vessel impairment loss - (2,389)
Goodwill impairment charge - (335,404)
Loss from vessel purchase cancellation - (15,632)
Operating Income (loss) 35,404 (256,541)
---------- ----------
OTHER INCOME (EXPENSES):
Interest and finance costs (4,079) (18,716)
Interest income 3,446 400
Interest rate swap losses (184) (42,659)
Foreign exchange gains (losses) (269) 154
Other, net (121) (659)
---------- ----------
Total other income(expenses),net (1,207) (61,480)
---------- ----------
---------- ----------
Net Income (loss), before taxes 34,197 (318,021)
---------- ----------
U.S. Source Income Taxes (127) (189)
---------- ----------
Net Income (loss), after taxes and before
minority interest 34,070 (318,210)
---------- ----------
Minority interest - 41
Income (loss) from investment in affiliate 60 (34)
Loss in value of investment in affiliate - (10,963)
---------- ----------
Net income (loss) 34,130 (329,166)
========== ==========
Earnings (losses) per common share, basic $ 1.71 -$ 7.49
Weighted average number of shares, basic 19,949,644 43,985,293
Earnings (losses) per common share, diluted $ 1.71 -$ 7.49
Weighted average number of shares, diluted 20,003,703 43,985,293
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATION
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2008
(Expressed in thousands of U.S. Dollars, except for share
and per share data)
Year ended Year ended
December 31, December 31,
2007 2008
---------- ----------
(Unaudited)
REVENUES:
Voyage revenues 176,689 461,203
Time charter amortization - 233,967
Revenue from managing related party vessels 818 890
---------- ----------
177,507 696,060
---------- ----------
EXPENSES
Voyage expenses 11,077 28,145
Charter hire expense - 23,387
Charter hire amortization - 28,445
Commissions to a related party 2,204 3,620
Vessel operating expenses 33,637 69,684
Depreciation 27,864 98,753
Amortization of deferred dry-docking and special
survey costs 3,904 7,447
General and administrative expenses 12,586 32,925
---------- ----------
91,272 292,406
---------- ----------
Gain on sale of vessel 6,194 -
Vessel impairment loss - (2,389)
Goodwill impairment charge - (335,404)
Loss from vessel purchase cancellation - (15,632)
Operating Income 92,429 50,229
---------- ----------
OTHER INCOME (EXPENSES):
Interest and finance costs (14,536) (56,643)
Interest income 7,485 7,053
Interest rate swap losses (439) (35,884)
Foreign exchange gains (losses) (367) 71
Other, net (66) 1,585
---------- ----------
Total other income (expenses), net (7,923) (83,818)
---------- ----------
---------- ----------
Net Income (loss), before taxes 84,506 (33,589)
---------- ----------
U.S. Source Income Taxes (486) (783)
---------- ----------
Net Income (loss), after taxes and before
minority interest 84,020 (34,372)
---------- ----------
Minority interest 2 140
Income from investment in affiliate 873 487
Loss in value of investment in affiliate - (10,963)
---------- ----------
Net income (loss) 84,895 (44,708)
========== ==========
Earnings (losses) per common share, basic $ 4.26 -$ 1.23
Weighted average number of shares, basic 19,949,644 37,003,101
Earnings (losses) per common share, diluted $ 4.25 -$ 1.23
Weighted average number of shares, diluted 19,965,676 37,003,101
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2007 AND 2008
(Expressed in thousands of U.S. Dollars, except for share
and per share data)
2007 2008
--------- ---------
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 243,672 109,792
Restricted cash 3,175 53
Accounts receivable trade, net 1,506 10,247
Other current assets 4,381 6,958
--------- ---------
Total current Assets 252,734 127,050
--------- ---------
FIXED ASSETS:
Vessels acquisition/construction - 106,898
Vessels' net 527,164 2,786,717
Office furniture and equipment, net 1,466 1,722
--------- ---------
Total fixed assets, net 528,630 2,895,337
--------- ---------
OTHER NON CURRENT ASSETS:
Investment in affiliate 15,688 5,212
Goodwill 400 -
Deferred assets, net 15,119 16,144
Time charters acquired, net - 264,263
Restricted cash 11,825 24,947
--------- ---------
Total assets 824,396 3,332,953
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt, net of deferred
financing fees 39,179 208,544
Accounts payable 4,306 6,440
Other current liabilities 10,449 47,934
Financial Instruments 2,056 40,119
--------- ---------
Total Current Liabilities 55,990 303,037
--------- ---------
Long-term debt, net of current portion and net of
deferred financing fees 368,585 1,315,898
--------- ---------
Time charters acquired, net - 650,781
--------- ---------
Financial Instruments - 41,020
--------- ---------
MINORITY INTEREST - 14,930
--------- ---------
COMMITMENTS AND CONTINGENCIES - -
--------- ---------
STOCKHOLDERS' EQUITY:
Preferred stock, $0.1 par value: 5,000,000 shares
authorized, none issued - -
Common Stock, $0.01 par value; 100,000,000 Class A
shares and 1,000,000 Class B shares authorized;
19,893,556 Class A shares and 135,326 Class B
shares, issued and outstanding at December 31,
2007 and 46,080,272 Class A shares and 145,746
Class B shares, issued and outstanding at December
31, 2008 200 461
Additional paid-in capital 193,897 894,333
Accumulated Other Comprehensive Loss (65) (74)
Retained earnings 205,978 112,756
--------- ---------
400,010 1,007,476
--------- ---------
Less: Treasury stock (189) (189)
--------- ---------
Total stockholders' equity 399,821 1,007,287
--------- ---------
--------- ---------
Total Liabilities & Stockholders' Equity 824,396 3,332,953
========= =========
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2008
(Expressed in thousands of U.S. Dollars)
2007 2008
--------- ---------
(Unaudited)
Cash Flows from Operating Activities:
Net income (loss) 84,895 (44,708)
Adjustments to reconcile net income to net cash
provided by operating activities 26,773 303,448
Changes in operating assets and liabilities:
Operating assets (423) (2,259)
Operating liabilities 4,322 20,929
Payments for dry docking & special survey (6,834) (13,511)
--------- ---------
Net Cash provided by Operating Activities 108,733 263,899
--------- ---------
Cash Flows from Investing Activities:
Investment in Oceanaut (11,004) -
Additions to vessels cost (126,068) (342)
Advances for vessels acquisition - (84,866)
Additions to Office furniture & equipment (755) (401)
Cancellation of vessel acquisition - (7,250)
Acquisition of Quintana, net of cash acquired - (692,420)
Payment for business acquisition costs (1,522) -
Proceeds from sale of vessel to a related party 15,740 -
--------- ---------
Net cash used in Investing Activities (123,609) (785,279)
--------- ---------
Cash Flows from Financing Activities:
(Increase) decrease in restricted cash - (10,000)
Proceeds from long term debt 225,600 1,405,642
Repayment of long term debt (35,876) (944,945)
Payment of financing costs (7,577) (15,290)
Receipt from a related party 2,024 -
Minority interest contributions (2) 738
Share capital issuance costs - (131)
Dividends paid (11,910) (48,514)
--------- ---------
Net cash provided by Financing Activities 172,259 387,500
--------- ---------
Net increase (decrease) in cash & cash equivalents 157,383 (133,880)
Cash & cash equivalents at beginning of year 86,289 243,672
--------- ---------
Cash & cash equivalents at end of the year 243,672 109,792
Adjusted EBITDA Reconciliation
(all amounts in thousands of U.S. Dollars)
For the Quarters ended For the years ended
December 31, December 31,
----------------------- ----------------------
2007 2008 2007 2008
----------------------- ----------------------
Net income (loss) $ 34,130 $ (329,166) $ 84,895 $ (44,708)
Interest and finance costs,
net (1) 633 20,797 6,767 59,653
Depreciation and
amortization 8,295 32,582 31,768 106,200
Vessel impairment loss - 2,389 - 2,389
Goodwill impairment charge - 335,404 - 335,404
Loss from vessel purchase
cancellation - 8,382 - 8,382
Loss in value of investment - 10,963 - 10,963
Unrealized swap losses 184 40,178 723 25,821
Amortization of T/C fair
values (2) - (68,894) - (205,522)
Stock based compensation 42 1,922 826 8,596
Gain on sale of vessel - - (6,194) -
Taxes 127 189 486 783
----------- ---------- ---------- ----------
Adjusted EBITDA $ 43,411 $ 54,746 $ 119,271 $ 307,961
=========== ========== ========== ==========
(1) Includes swap interest paid and received
(2) Analysis:
Quarters
ended Year ended
December December
31, 2008 31, 2008
---------- ----------
Non-cash amortization of unfavorable time charters
in revenue $ (78,816) $ (233,967)
Non-cash amortization of favorable time charters in
charter hire expense 9,922 28,445
---------- ----------
$ (68,894) $ (205,522)
========== ==========
Reconciliation of Net Income to Adjusted Net Income
(all amounts in thousands of U.S. Dollars)
For the Quarters For the years ended
ended December 31, December 31,
------------------- -------------------
2007 2008 2007 2008
--------- --------- --------- ---------
Net income (loss) $ 34,130 $(329,166) $ 84,895 $ (44,708)
Unrealized swap losses 184 40,178 723 25,821
Goodwill impairment charge - 335,404 - 335,404
Vessel impairment loss - 2,389 - 2,389
Loss in value of investment - 10,963 - 10,963
Loss from vessel purchase
cancellation - 15,632 - 15,632
Gain on sale of vessel - - (6,194) -
--------- --------- --------- ---------
Adjusted Net income $ 34,314 $ 75,400 $ 79,424 $ 345,501
========= ========= ========= =========
Reconciliation of Earnings per Share (Diluted) to Adjusted Earnings
per Share (Diluted)
(all amounts in U.S. Dollars)
For the Quarters ended For the years ended
December 31, December 31,
------------------- -------------------
2007 2008 2007 2008
--------- --------- -------- ---------
Earnings per Share (Diluted) $ 1.71 $ (7.49)$ 4.25 $ (1.23)
Unrealized swap losses 0.01 0.91 0.04 0.70
Goodwill impairment charge - 7.63 - 9.06
Vessel impairment loss - 0.05 - 0.06
Loss in value of investment - 0.25 - 0.30
Loss from vessel purchase
cancellation - 0.36 - 0.42
Gain on sale of vessel - - (0.31) -
--------- --------- -------- ---------
Adjusted Earnings per Share
(Diluted) $ 1.72 $ 1.71 $ 3.98 $ 9.31
========= ========= ======== =========
Disclosure of Non-GAAP Financial Measures Adjusted EBITDA represents net income plus net interest expense, depreciation, amortization, and taxes eliminating the effect of deferred stock-based compensation, impairment losses, gains or losses on the sale of vessels, amortization of deferred time charter assets and liabilities and unrealized gains or losses on swaps. The Company's management uses adjusted EBITDA as a performance measure. The Company believes that adjusted EBITDA is useful to investors, because the shipping industry is capital intensive and may involve significant financing costs. Adjusted EBITDA is not a measure recognized by GAAP and should not be considered as an alternative to net income, operating income or any other indicator of a Company's operating performance required by GAAP. The Company's definition of adjusted EBITDA may not be the same as that used by other companies in the shipping or other industries. Adjusted Net Income represents net income (loss) adjusted for unrealized gains or losses from our swap transactions, the impairment charge recognized in goodwill resulted from Quintana's acquisition, the impairment loss recognized on vessel Swift, the loss in value of the Company's investment in Oceanaut Inc. due to the initiation of its liquidation and the loss on a vessel purchase cancellation. Adjusted Earnings per Share (diluted) represents Adjusted Net Income divided by weighted average shares outstanding (diluted). These measures are "non-GAAP financial measures" and should not be considered substitutes for net income or earnings per share (diluted), respectively, as reported under GAAP. The Company has included an adjusted net income and adjusted earnings per share (diluted) calculation in this period in order to facilitate comparability between the Company's performance in the reported periods and its performance in prior periods. About Excel Maritime Carriers Ltd Excel is an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes, such as iron ore, coal and grains, as well as bauxite, fertilizers and steel products. Excel owns a fleet of 40 vessels and, together with 7 Panamax vessels under bareboat charters, operates 47 vessels (5 Capesize, 14 Kamsarmax, 21 Panamax, 2 Supramax and 5 Handymax vessels) with a total carrying capacity of approximately 3.9 million DWT. Excel Class A common shares have been listed since September 15, 2005 on the New York Stock Exchange (NYSE) under the symbol EXM and, prior to that date, were listed on the American Stock Exchange (AMEX) since 1998. For more information about the Company, please go to our corporate website www.excelmaritime.com. Forward-Looking Statement 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 the Company'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. Although the Company 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 the Company. 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 the ability to changes in the demand for dry bulk vessels, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company 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 the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. APPENDIX The following key indicators highlight the Company's financial and operating performance during the fourth quarter and the year ended December 31, 2008 compared to the corresponding period in the prior year. In the table below, the Panamax fleet includes both Kamsarmax and Panamax vessels and the Handymax fleet includes both Supramax and Handymax vessels:
EXCEL MARITIME CARRIERS LTD
Vessel Employment
(In US Dollars per day, unless otherwise stated)
QUARTER ENDED DECEMBER 31,
HANDYSIZE
CAPESIZE FLEET PANAMAX FLEET FLEET TOTAL FLEET
---------------- -------------- -------------- --------------
2007 2008 2007 2008 2007 2008 2007 2008
Ownership
days - 374 920 3,220 590 736 1,510 4,330
Net
operating
ship days
under
period
charter - 374 766 2,484 368 98 1,134 2,956
Net
operating
ship days
under
spot
charter - - 147 653 178 637 325 1,290
Net
operating
ship days - 374 913 3,137 546 735 1,459 4,246
Utilization - 100.00% 99.24% 97.42% 92.54% 99.86% 96.62% 98.06%
Time
charter
equivalent
per ship
per day -
period
charter - 52,023 31,780 26,571 35,311 25,479 32,926 29,754
Time
charter
equivalent
per ship
per day -
spot
charter - - 85,394 7,703 35,512 8,724 58,097 8,207
Time
Charter
equivalent
per ship
per day - 52,022 40,412 22,642 35,377 10,959 38,528 23,207
Vessel
operating
expenses
per ship
per day - (5,423) (5,828) (5,067) (5,818) (4,937) (5,825) (5,075)
Net
Operating
Cash Flow
per ship
per day
before
general
and
administ-
rative
expenses - 46,599 34,584 17,575 29,559 6,022 32,703 18,132
------ ------- ------ ------ ------ ------ ------ ------
EXCEL MARITIME CARRIERS LTD
Vessel Employment
(In US Dollars per day, unless otherwise stated)
YEAR ENDED DECEMBER 31,
HANDYSIZE
CAPESIZE FLEET PANAMAX FLEET FLEET TOTAL FLEET
---------------- -------------- -------------- --------------
2007 2008 2007 2008 2007 2008 2007 2008
Ownership
days - 1,046 3,650 10,160 2,357 2,928 6,007 14,134
Net
operating
ship days
under
period
charter - 1,016 3,145 8,457 1,055 614 4,200 10,087
Net
operating
ship days
under
spot
charter - 30 298 1,451 1,148 2,156 1,446 3,637
Net
operating
ship days - 1,046 3,443 9,908 2,203 2,770 5,646 13,724
Utilization - 100.00% 94.33% 97.52% 93.47% 94.60% 93.99% 97.10%
Time
charter
equivalent
per ship
per day -
period
charter - 50,863 27,112 26,627 27,064 33,736 27,100 29,501
Time
charter
equivalent
per ship
per day -
spot
charter - 118,107 63,564 38,798 26,705 33,412 34,293 36,254
Time
Charter
equivalent
per ship
per day - 52,777 30,267 28,410 26,877 33,484 28,942 31,291
Vessel
operating
expenses
per ship
per day - (5,013) (5,841) (4,932) (5,225) (4,888) (5,599) (4,929)
Net
Operating
Cash Flow
per ship
per day
before
general
and
administ-
rative
expenses - 47,764 24,426 23,478 21,652 28,596 23,343 26,362
------- ------- ------ ------ ------ ------ ------ ------
Glossary of Terms
Average number of vessels: This is the number of vessels that constituted
our fleet for the relevant period, as measured by the sum of the number of
calendar days each vessel was a part of our fleet during the period divided
by the number of calendar days in that period.
Total ownership days: We define these as the total days we owned the
vessels in our fleet for the relevant period including off hire days
associated with major repairs, dry dockings or special or intermediate
surveys. Ownership days are an indicator of the size of the fleet over a
period and affect both the amount of revenues and the amount of expenses
that are recorded during a period.
Operating days: These are the ownership days less the aggregate number of
off-hire days associated with major repairs, dry docks or special or
intermediate surveys and the aggregate amount of time spent positioning
vessels and any unforeseen off-hire. The shipping industry uses available
days to measure the number of days in a period during which vessels should
be capable of generating revenue.
Operating days under spot / short duration charter: This is defined as
available days under spot charters and / or time charters of duration of
less than six months.
Fleet utilization: This is the percentage of time that our vessels were
available for revenue generating days, and is determined by dividing
available days by ownership days for the relevant period.
Time charter equivalent per ship per day ("TCE"): This is a measure of the
average daily revenue performance of a vessel on a per voyage basis. Our
method of calculating TCE is consistent with industry standards and is
determined by dividing revenue generated from voyage charters net of voyage
expenses by operating days for the relevant time period. Voyage expenses
primarily consist of port, canal and fuel costs that are unique to a
particular voyage, which would otherwise be paid by the charterer under a
time charter contract, as well as commissions. Time charter equivalent
revenue and TCE rate are not measures of financial performance under U.S.
GAAP and may not be comparable to similarly titled measures of other
companies. However, TCE is a standard shipping industry performance measure
used primarily to compare period-to-period changes in a shipping company's
performance despite changes in the mix of charter types (i.e., spot voyage
charters, time charters and bareboat charters) under which the vessels may
be employed between the periods.
Time Charter Equivalent Calculation
(all amounts in thousands of U.S. Dollars, except for Daily Time Charter
Equivalent and available days)
For the Quarters For the years
ended December 31, ended December 31,
------------------ ------------------
2007 2008 2007 2008
-------- -------- -------- --------
Voyage revenues 60,690 110,145 176,689 461,203
Voyage expenses (4,477) (11,609) (13,281) (31,765)
-------- -------- -------- --------
Time Charter Equivalent 56,213 98,536 163,408 429,438
======== ======== ======== ========
Total operating days 1,459 4,246 5,646 13,724
Daily Time charter equivalent $ 38,528 $ 23,207 $ 28,942 $ 31,291
Daily vessel operating expenses: This includes crew costs, provisions, deck
and engine stores, lubricating oil, insurance, maintenance and repairs and
is calculated by dividing vessel operating expenses by total ownership days
for the relevant time period.
Daily general and administrative expense: This is calculated by dividing
general and administrative expense by total ownership days for the relevant
time period.
Expected Amortization Schedule for Fair Valued Time Charters for Next Year
(in USD millions) Q1'09 Q2'09 Q3'09 Q4'09 Total
Amortization of unfavorable time
charters (1) 77.9 114.6 77.6 74.1 344.2
Amortization of favorable time
charters (2) (9.9) (10.0) (10.1) (10.1) (40.1)
(1) Adjustment to Revenue from operations i.e. increases revenues
(2) Adjustment to Charter hire expenses i.e. increases charter hire expense
Fleet List as of April 7, 2009:
TC Expiration
Year Date (max
Name Type Dwt Built period)
------------ ------------ -------- ---------------
Capesize
Iron Miner Capesize 177,000 2007 April 2012
Kirmar Capesize 165,500 2001 June 2013
Iron Beauty Capesize 165,500 2001 June 2010
Lowlands Beilun Capesize 170,162 1999 June 2010
Sandra Capesize 180,000 2008 October 2010 (1)
Total Capesize 5 858,162
Kamsarmax
Iron Manolis Kamsarmax 82,300 2007 December 2010
Iron Brooke Kamsarmax 82,300 2007 December 2010
Iron Lindrew Kamsarmax 82,300 2007 December 2010
Coal Hunter Kamsarmax 82,300 2006 December 2010
Pascha Kamsarmax 82,300 2006 December 2010
Coal Gypsy Kamsarmax 82,300 2006 December 2010
Iron Anne Kamsarmax 82,000 2006 December 2010
Iron Vassilis Kamsarmax 82,000 2006 December 2010
Iron Bill Kamsarmax 82,000 2006 December 2010
Santa Barbara Kamsarmax 82,266 2006 December 2010
Ore Hansa Kamsarmax 82,229 2006 December 2010
Iron Kalypso Kamsarmax 82,204 2006 December 2010
Iron Fuzeyya Kamsarmax 82,229 2006 December 2010
Iron Bradyn Kamsarmax 82,769 2005 December 2010
------------
Total Kamsarmax 14 1,151,497
Panamax
Grain Harvester Panamax 76,411 2004 December 2010
Grain Express Panamax 76,466 2004 December 2010
Iron Knight Panamax 76,429 2004 December 2010
Coal Pride Panamax 72,600 1999 May 2009
Isminaki Panamax 74,577 1998 April 2009
Angela Star Panamax 73,798 1998 May 2009
Elinakos Panamax 73,751 1997 October 2009
Happy Day Panamax 71,694 1997 August 2009
Iron Man (A) Panamax 72,861 1997 August 2010
Coal Age (A) Panamax 72,861 1997 April 2009
Fearless I (A) Panamax 73,427 1997 October 2009
Barbara (A) Panamax 73,390 1997 May 2009
Linda Leah (A) Panamax 73,390 1997 October 2009
King Coal (A) Panamax 72,873 1997 August 2011
Coal Glory (A) Panamax 73,670 1995 January 2010
Powerful Panamax 70,083 1994 July 2009
First Endeavour Panamax 69,111 1994 October 2009
Rodon Panamax 73,670 1993 May 2009
Birthday Panamax 71,504 1993 April 2009
Renuar Panamax 70,128 1993 April 2009
Fortezza Panamax 69,634 1993 August 2009
------------
Total Panamax 21 1,532,328
TC Expiration
Date (max
Name Type Dwt Year Built period)
---------- ---------- ---------- ---------------
Supramax
July M Supramax 55,567 2005 June 2009
Mairouli Supramax 53,206 2005 February 2010
----------
Total Supramax 2 108,773
Handymax
Emerald Handymax 45,588 1998 May 2009
Princess I Handymax 38,858 1994 August 2009
Marybelle Handymax 42,552 1987 May 2009
Attractive Handymax 41,524 1985 May 2009
Lady Handymax 41,090 1985 July 2009
----------
Total Handymax 5 209,612
----------
GRAND TOTAL 47 3,860,372
==========
Average age 8.8 Yrs
Estimated
Fleet to be delivered Type Dwt delivery (B)
---------- ---------- ---------------
Christine (D) Capesize 180,000 May 2010
Hope (E) Capesize 181,000 November 2010
Lillie (E) Capesize 181,000 December 2010
Total fleet to be delivered 542,000
Estimated
Fleet to be delivered (C) Type Dwt delivery (B)
---------- ---------- -------------
Fritz (E) Capesize 180,000 May 2010
Benthe (E) Capesize 180,000 June 2010
Gayle Frances (E) Capesize 180,000 July 2010
Iron Lena (E) Capesize 180,000 August 2010
(1) The vessel will enter into a time charter through May 2016 upon
completion of its current charter.
(A) These vessels were sold in 2007 and leased back on a bareboat charter
through July 2015.
(B) The delivery dates shown in this column are estimates based on the
delivery dates set forth in the relevant shipbuilding contracts or
resale agreements.
(C) No refund guarantee has been received for these newbuildings and Excel
does not believe that the respective new building contracts will
materialize. There can be no assurance that the vessels will be
delivered timely or at all.
(D) Excel holds a 42.8% interest in the joint venture that will own the
vessel.
(E) Excel holds a 50% interest in the joint ventures that will own these
vessels.
For further details on the fleet and their employment please refer to our
website at www.excelmaritime.com
Contact Information: Contacts: Investor Relations / Financial Media: Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue - Suite 1536 New York, NY 10160, USA Tel: (212) 661-7566 Fax: (212) 661-7526 E-Mail: excelmaritime@capitallink.com www.capitallink.com Company: Lefteris Papatrifon Chief Financial Officer Excel Maritime Carriers Ltd. 17th Km National Road Athens-Lamia & Finikos Street 145 64 Nea Kifisia Athens, Greece Tel: 011-30-210-62-09-520 Fax: 011-30-210-62-09-528 E-Mail: ir@excelmaritime.com www.excelmaritime.com