Three-Months ended Six-Months ended
June 30, June 30,
------------------- -------------------
2009 2010 2009 2010
-------- --------- -------- ---------
(amounts in millions of U.S Dollars,
except per share data and daily TCE)
Voyage Revenues $ 98.4 $ 107.0 $ 191.2 $ 211.3
Net Income $ 78.0 $ 78.9 $ 196.0 $ 146.2
Adjusted Net Income (Loss) $ (1.6) $ 3.1 $ (9.7) $ 12.0
Earnings per Share (Diluted) $ 1.05 $ 0.95 $ 3.27 $ 1.78
Adjusted Earnings per Share
(Diluted) $ (0.02) $ 0.04 $ (0.17) $ 0.15
Adjusted EBITDA $ 57.3 $ 60.1 $ 110.5 $ 122.1
Time Charter Equivalent (TCE) per
day $ 22,148 $ 24,062 $ 21,559 $ 24,254
A reconciliation of the non-GAAP measures discussed above is included in a
subsequent section of this release.
Management Commentary:
Pavlos Kanellopoulos, Chief Financial Officer of Excel, stated, "We are
pleased to report another profitable quarterly performance with strong cash
flow generation. The consistent implementation of our business strategy
combined with better market conditions in the dry bulk sector during the
second quarter of this year, resulted in an improved EBITDA and operating
cash flow generation compared to the respective period of last year. In
this context, we have opted to accelerate bank debt repayments and further
enhance our balance sheet structure, in order to qualify for lower
applicable margin on our $1.4bn Credit Facility for the future quarters. We
acknowledge the high volatility in the dry bulk market, especially in the
Capesize vessels, however, we continue to be optimistic for the medium and
long term outlook of the markets in which we operate.''
Year to Date Corporate Developments
During the six month period ended June 30, 2010, the following corporate
developments took place, which are discussed in more detail in our earnings
release for the first quarter of 2010 released on May 5, 2010:
-- The delivery of M/V Christine and scheduled installments paid to the
shipyard in relation to M/V Hope (tbn Mairaki);
-- The conclusion of new loan agreements for the above mentioned vessels;
-- The repayment of the RBS credit facilities related to the new building
vessels; and
-- An exercise of warrants by their holders
Furthermore, on June 30, 2010, we notified our major lenders of our
intention to make an additional payment of $28.0 million, on top of our
regular installment of $18.0 million due on July 1, 2010, under our $1.4
billion credit facility. The payment was made in accordance with the excess
cash flow provision as defined in the amended agreement and as such, it
will be applied against the term loan instalment due on April 1, 2016.
Another $12.0 million will be maintained in a pledged account to fund the
capital expenditures for the newbuilding vessel M/V Hope (tbn Mairaki).
These payments were made on July 1, 2010.
Following the total payment of $46.0 million, we have repaid the total
principal amount of $455.0 million that we would have paid in accordance
with the original credit facility dated April 14, 2008 and we are in
compliance with the relevant financial covenants as applicable after the
end of the waiver period. As a result, the excess cash flow provision will
be terminated and the loan applicable margin for the interest period
starting July 1, 2010 and ending October 1, 2010 will decrease from 2.5% to
1.25% and will remain at this level as long as we follow the repayment
schedule provided in the original loan agreement and we are in compliance
with the relevant financial covenants as applicable after the end of the
waiver period.
On July 1, 2010, a total amount of $46.0 million was paid as discussed
above, while, an amount of $12.0 million was transferred in a pledged
account to fund future capital expenditures for M/V Hope (tbn Mairaki).
Fleet Developments
-- On May 19, 2010, the M/V Happy Day, a Panamax vessel of 71,694 dwt
built in 1997, was fixed under a new time charter for a period of
12-15 months at a daily rate of $27,000.
-- On July 9, 2010, the M/V Angela Star, a Panamax vessel of 73,798 dwt
built in 1998, was involved in a collision while departing in ballast
condition from a Panamanian port. Damages were sustained on her hull
structure and as a result temporary repairs were carried out locally.
The vessel later sailed to a yard in Bahamas for permanent repairs. The
vessel is currently estimated to remain off hire for approximately 47
days and the estimated repair cost will be approximately $2.8 million
which is an insured loss covered, subject to a small deductable, under
the vessel's hull and machinery insurance policy. At the time of the
incident the vessel was fixed under a trip time charter at $23,000 per
day for 50-55 days.
Time Charter Coverage
As of today, we have secured under time charter employment 63.1% of our
operating days for 2010 (Q3-Q4) and 18.2% for the year ending December 31,
2011.
Second Quarter 2010 Results:
Excel reported net profit for the quarter of $78.9 million or $0.95 per
weighted average diluted share compared to a net profit of $78.0 million or
$1.05 per weighted average diluted share in the second quarter of 2009.
The second quarter 2010 results include a non-cash unrealized interest-rate
swap loss of $5.1 million compared to a non-cash unrealized interest-rate
swap gain of $14.3 million in the corresponding period in 2009. The changes
in the fair values of interest rate swaps are recorded in income as they do
not meet the criteria for hedge accounting.
Included in the above net income is also the amortization of favorable and
unfavorable time charters that were recorded upon acquiring Quintana
Maritime Limited ("Quintana") on April 15, 2008 amounting to a net income
of $80.9 million ($0.98 per weighted average diluted share) and $65.3
million ($0.88 per weighted average diluted share) for the second quarters
of 2010 and 2009, respectively.
Adjusted net income, excluding all the above items, for the second quarter
of 2010 would have amounted to $3.1 million or $0.04 per weighted average
diluted share compared to an adjusted net loss, excluding all the above
items, for the second quarter of 2009 of $1.6 million or $0.02 per weighted
average diluted share.
A reconciliation of adjusted Net income to Net Income is included in a
subsequent section of this release.
Included in the above adjusted net income is also the amortization of stock
based compensation expense of $1.1 million ($0.01 per weighted average
diluted share) and $3.0 million ($0.04 per weighted average diluted share),
for the quarters ended June 30, 2010 and 2009, respectively.
Voyage revenues for the second quarter of 2010 amounted to $107.0 million
as compared to $98.4 million for the same period in 2009, an increase of
approximately 8.7%.
An average of 47.7 and 47.0 vessels were operated during the second
quarters of 2010 and 2009, respectively, earning a blended average time
charter equivalent rate of $24,062 and $22,148 per day, respectively.
Please refer to a subsequent section of this Press Release for a
calculation of the TCE.
Adjusted EBITDA for the second quarter of 2010 was $60.1 million compared
to $57.3 million for the second quarter of 2009, an increase of
approximately 4.9%. Please refer to a subsequent section of this Press
Release for a reconciliation of adjusted EBITDA to Net Income.
Six Months to June 30, 2010 Results:
Excel reported net profit for the period of $146.2 million or $1.78 per
weighted average diluted share compared to a net profit of $196.0 million
or $3.27 per weighted average diluted share in the respective period of
2009.
The results for the six month period ended June 30, 2010 include a non-cash
unrealized interest-rate swap loss of $4.8 million compared to a non-cash
unrealized interest-rate swap gain of $21.0 million in the corresponding
period in 2009. The changes in the fair values of interest rate swaps are
recorded in income as they do not meet the criteria for hedge accounting.
In addition, the results for the six month period ended June 30, 2009
include $0.1 million of a non-cash gain on sale of a vessel.
Included in the above net income is also the amortization of favorable and
unfavorable time charters that were recorded upon acquiring Quintana
Maritime Limited ("Quintana") on April 15, 2008 amounting to a net income
of $138.9 million ($1.69 per weighted average diluted share) and $184.6
million ($3.08 per weighted average diluted share) for the second quarters
of 2010 and 2009, respectively.
Adjusted net income, excluding all the above items, for the six months to
June 30, 2010 would have amounted to $12.0 million or $0.15 per weighted
average diluted share compared to an adjusted net loss, excluding all the
above items, for the respective period of 2009 of $9.7 million or $0.17 per
weighted average diluted share.
A reconciliation of adjusted Net income to Net Income is included in a
subsequent section of this release.
Included in the above adjusted net income is also the amortization of stock
based compensation expense of $1.9 million ($0.02 per weighted average
diluted share) and $5.4 million ($0.09 per weighted average diluted share),
for the six months to June 30, 2010 and 2009, respectively.
Voyage revenues for the six month period ended June 30, 2010 amounted to
$211.3 million as compared to $191.2 million for the same period in 2009,
an increase of approximately 10.5%.
An average of 47.3 and 47.4 vessels were operated during the six months to
June 30, 2010 and 2009, respectively, earning a blended average time
charter equivalent rate of $24,254 and $21,559 per day, respectively.
Please refer to a subsequent section of this Press Release for a
calculation of the TCE.
Adjusted EBITDA for the period was $122.1 million compared to $110.5
million for the respective period of 2009, an increase of approximately
10.5%. Please refer to a subsequent section of this Press Release for a
reconciliation of adjusted EBITDA to Net Income.
Conference Call Details:
Tomorrow August 5, 2010 at 08:30 A.M. EDT, the Company's management will
host a conference call to discuss these 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 August
12, 2010 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's 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 Statements and Other Financial Data Follow -
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2009 AND 2010
(In thousands of U.S. Dollars, except for share and per share data)
Three-month period
Ended June 30,
2009 2010
---------- ----------
REVENUES:
Voyage revenues $ 98,439 $ 107,007
Time Charter fair value amortization 75,309 90,900
Revenue from managing related party vessels 112 105
---------- ----------
Revenue from operations 173,860 198,012
---------- ----------
EXPENSES:
Voyage expenses 5,051 7,216
Charter hire expense 8,185 8,185
Charter hire amortization 9,970 9,959
Commissions to a related party 567 774
Vessel operating expenses 21,065 22,028
Depreciation expense 30,733 31,242
Dry-docking and special survey cost 3,826 6,018
General and administrative expenses 9,574 9,519
---------- ----------
88,971 94,941
---------- ----------
Income from operations 84,889 103,071
---------- ----------
OTHER INCOME (EXPENSES):
Interest and finance costs (14,651) (11,174)
Interest income 166 432
Interest rate swap gain (loss) 7,627 (12,670)
Foreign exchange gain (loss) (125) 173
Other, net 263 (357)
---------- ----------
Total other income (expenses), net (6,720) (23,596)
---------- ----------
Net income before taxes and loss assumed (income
earned) by non controlling interest 78,169 79,475
---------- ----------
US Source Income taxes (177) (286)
---------- ----------
Net income 77,992 79,189
---------- ----------
Loss assumed (income earned) by non-controlling
interest 46 (270)
---------- ----------
Net income attributable to Excel Maritime Carriers
Ltd. $ 78,038 $ 78,919
========== ==========
Earnings per common share, basic $ 1.10 $ 0.98
========== ==========
Weighted average number of shares, basic 70,986,320 80,388,377
========== ==========
Earnings per common share, diluted $ 1.05 $ 0.95
========== ==========
Weighted average number of shares, diluted 74,199,723 82,685,340
========== ==========
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2009 AND 2010
(In thousands of U.S. Dollars, except for share and per share data)
Six month period ended
June 30,
2009 2010
---------- ----------
REVENUES:
Voyage revenues $ 191,245 $ 211,252
Time Charter fair value amortization 204,446 158,742
Revenue from managing related party vessels 277 210
---------- ----------
Revenue from operations 395,968 370,204
---------- ----------
EXPENSES:
Voyage expenses 9,877 13,266
Charter hire expense 16,281 16,281
Charter hire amortization 19,816 19,808
Commissions to a related party 1,025 1,508
Vessel operating expenses 42,210 43,113
Depreciation expense 61,266 61,643
Dry-docking and special survey cost 7,932 9,538
General and administrative expenses 16,865 16,443
---------- ----------
175,272 181,600
---------- ----------
Gain on sale of vessel 61 -
Income from operations 220,757 188,604
---------- ----------
OTHER INCOME (EXPENSES):
Interest and finance costs (32,674) (21,944)
Interest income 242 784
Interest rate swap gain (loss) 8,185 (19,991)
Foreign exchange gain (loss) (37) 252
Other, net (177) (661)
---------- ----------
Total other income (expenses), net (24,461) (41,560)
---------- ----------
Net income before taxes and loss assumed (income
earned) by non controlling interest 196,296 147,044
---------- ----------
US Source Income taxes (353) (572)
---------- ----------
Net income 195,943 146,472
---------- ----------
Loss assumed (income earned) by non-controlling
interest 87 (257)
---------- ----------
Net income attributable to Excel Maritime Carriers
Ltd. $ 196,030 $ 146,215
========== ==========
Earnings per common share, basic $ 3.35 $ 1.83
========== ==========
Weighted average number of shares, basic 58,480,526 79,681,876
========== ==========
Earnings per common share, diluted $ 3.27 $ 1.78
========== ==========
Weighted average number of shares, diluted 59,935,790 82,091,338
========== ==========
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2009 AND JUNE 30, 2010 (UNAUDITED)
(In thousands of U.S. Dollars)
December 31, June 30,
ASSETS 2009 2010
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 100,098 $ 106,599
Restricted cash 34,426 15,285
Accounts receivable 3,784 2,556
Other current assets 9,792 10,146
----------- -----------
Total current assets 148,100 134,586
----------- -----------
FIXED ASSETS:
Vessels, net 2,660,163 2,686,040
Advances for vessels under construction 71,184 43,785
Office furniture and equipment, net 1,450 1,285
----------- -----------
Total fixed assets, net 2,732,797 2,731,110
----------- -----------
OTHER NON CURRENT ASSETS:
Time charters acquired, net 224,311 204,503
Restricted cash 24,974 25,481
----------- -----------
Total assets $ 3,130,182 $ 3,095,680
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt, net of
deferred financing fees $ 134,681 $ 127,798
Accounts payable 5,349 9,692
Other current liabilities 47,801 49,915
Current portion of financial instruments 29,343 13,171
----------- -----------
Total current liabilities 217,174 200,576
----------- -----------
Long-term debt, net of current portion and net of
deferred financing fees 1,121,765 1,084,151
Time charters acquired, net 280,413 121,671
Financial instruments 24,558 45,493
----------- -----------
Total liabilities 1,643,910 1,451,891
----------- -----------
Commitments and contingencies - -
----------- -----------
STOCKHOLDERS' EQUITY:
Preferred stock - -
Common stock 799 813
Additional paid-in capital 1,046,606 1,053,463
Other Comprehensive Loss (85) (85)
Retained earnings 433,845 580,060
Less: Treasury stock (189) (189)
----------- -----------
Excel Maritime Carriers Ltd. Stockholders'
equity 1,480,976 1,634,062
----------- -----------
Non-controlling interests 5,296 9,727
----------- -----------
Total Stockholders' Equity 1,486,272 1,643,789
----------- -----------
Total liabilities and stockholders' equity $ 3,130,182 $ 3,095,680
=========== ===========
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2009 AND 2010
(In thousands of U.S. Dollars)
Six month period
ended June 30,
2009 2010
--------- ---------
Cash Flows from Operating Activities:
Net income $ 195,943 $ 146,472
Adjustments to reconcile net income to net cash
provided by operating activities (134,061) (65,616)
Changes in operating assets and liabilities:
Operating assets 4,777 874
Operating liabilities 2,779 6,457
--------- ---------
Net Cash provided by Operating Activities $ 69,438 $ 88,187
--------- ---------
Cash Flows from Investing Activities:
Advances for vessels under construction (8,407) (59,900)
Additions to vessel cost (114) -
Additions to office furniture and equipment (72) (56)
Proceeds received from Oceanaut liquidation 5,212 -
Proceeds from sale of vessel 3,735 -
--------- ---------
Net cash provided by (used in) Investing Activities $ 354 $ (59,956)
--------- ---------
Cash Flows from Financing Activities:
(Increase) decrease in restricted cash (2,355) 18,634
Proceeds from long-term debt 5,067 60,967
Repayment of long-term debt (141,707) (109,703)
Payment of financing costs (1,938) (802)
Issuance of common stock 45,000 5,000
Capital contributions from non-controlling
interest owners 2,860 4,174
--------- ---------
Net cash used in Financing Activities $ (93,073) $ (21,730)
--------- ---------
Net increase (decrease) in cash and cash equivalents (23,281) 6,501
Cash and cash equivalents at beginning of period 109,792 100,098
--------- ---------
Cash and cash equivalents at end of the period $ 86,511 $ 106,599
========= =========
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Interest payments $ 33,761 $ 17,306
U.S. Source Income taxes 448 639
Adjusted EBITDA Reconciliation
(all amounts in thousands of U.S. Dollars)
Three month period Six month period
ended June 30, ended June 30,
2009 2010 2009 2010
Net income 78,038 78,919 196,030 146,215
Interest and finance costs,
net(1) 21,116 18,287 45,249 36,388
Depreciation 30,733 31,242 61,266 61,643
Dry-dock and special survey
cost 3,826 6,018 7,932 9,538
Unrealized swap (gain) loss (14,258) 5,125 (21,002) 4,763
Amortization of T/C fair
values(2) (65,339) (80,941) (184,630) (138,934)
Stock based compensation 2,993 1,146 5,404 1,871
Gain on sale of vessel - - (61) -
Taxes 177 286 353 572
-------- -------- -------- --------
Adjusted EBITDA 57,286 60,082 110,541 122,056
======== ======== ======== ========
(1) Includes swap interest paid and received
(2) Analysis:
Three month period Six month period
ended June 30, ended June 30,
2009 2010 2009 2010
Non-cash amortization of
unfavorable time charters in
revenue (75,309) (63,974) (152,972) (131,816)
Non-cash accelerated
amortization of M/V Sandra and
Coal Pride time charter fair
value due to charter
termination - - (51,474) -
Non-cash accelerated
amortization of M/V Iron Miner
time charter fair value due to
charter termination - (26,926) (26,926)
Non-cash amortization of
favorable time charters in
charter hire expense 9,970 9,959 19,816 19,808
-------- -------- -------- --------
(65,339) (80,941) (184,630) (138,934)
======== ======== ======== ========
Reconciliation of Net Income to Adjusted Net Income (loss)
(all amounts in thousands of U.S. Dollars)
Three month period Six month period
ended June 30, ended June 30,
2009 2010 2009 2010
Net income 78,038 78,919 196,030 146,215
Unrealized swap (gain) loss (14,258) 5,125 (21,002) 4,763
Gain on sale of vessel - - (61) -
Amortization of T/C fair values (65,339) (80,941) (184,630) (138,934)
-------- -------- -------- --------
Adjusted Net income (loss) (1,559) 3,103 (9,663) 12,044
======== ======== ======== ========
Reconciliation of Earnings per Share (Diluted) to Adjusted Earnings
(losses) per Share (Diluted)
(all amounts in U.S. Dollars)
Three month period Six month period
ended June 30, ended June 30,
2009 2010 2009 2010
Net income $ 1.05 $ 0.95 $ 3.27 $ 1.78
Unrealized swap (gain) loss (0.19) 0.07 (0.36) 0.06
Gain on sale of vessel - - - (*) -
Amortization of T/C fair values (0.88) (0.98) (3.08) (1.69)
-------- --------- ---------- ---------
Adjusted Net income (loss) $ (0.02) $ 0.04 $ (0.17) $ 0.15
======== ========= ========== =========
(*) Effect insignificant
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, gains or losses on the sale of vessels,
amortization of deferred time charter assets and liabilities and unrealized
gains or losses on swaps, which are significant non-cash items. Following
Excel's change in the method of accounting for dry docking and special
survey costs, such costs are also included in the adjustments to EBITDA for
comparability purposes. Excel's management uses adjusted EBITDA as a
performance measure. Excel 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. Excel'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 plus unrealized gains or losses
from our swap transactions and any gains or losses on sale of vessels, both
of which are significant non-cash items and eliminating the effect of
deferred time charter assets and liabilities. Adjusted Earnings per Share
(diluted) represents Adjusted Net Income divided by the 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. Excel has included an adjusted net
income and adjusted earnings per share (diluted) calculation in this period
in order to facilitate comparability between Excel'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 seven Panamax
vessels under bareboat charters and one Capesize vessel that operates
through a joint venture in which it participates by 71.4%, operates 48
vessels (six Capesize, 14 Kamsarmax, 21 Panamax, two Supramax and five
Handymax vessels) with a total carrying capacity of approximately 4.0
million DWT. Excel's 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 Excel, 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 Excel'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 Excel 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 Excel. 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 Excel operates; risks associated with operations
outside the United States; and other factors listed from time to time in
Excel's filings with the Securities and Exchange Commission. Excel
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 Excel'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 for the three and six months ended June 30, 2010 compared to the corresponding periods in the prior year.
Vessel Employment
(In U.S. Dollars per day, unless otherwise stated)
Three month period Six month period
ended June 30, ended June 30,
2009 2010 2009 2010
Total calendar days 4,277 4,339 8,581 8,569
Available days under period charter 2,845 2,789 5,786 5,235
Available days under spot/short
duration charter 1,346 1,326 2,579 2,866
Utilization 98.0% 94.8% 97.5% 94.5%
Time charter equivalent per ship
per day-period 26,472 24,453 26,574 24,537
Time charter equivalent per ship
per day-spot 13,018 23,242 10,302 23,733
Time charter equivalent per ship
per day-weighted average 22,148 24,062 21,559 24,254
Net daily revenue per ship per day 21,702 22,820 21,015 22,929
Vessel operating expenses per ship
per day (4,925) (5,077) (4,919) (5,031)
Net Operating cash flows per ship
per day before G&A expenses 16,777 17,743 16,096 17,898
-------- -------- -------- --------
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 calendar 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.
Calendar 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.
Available days: These are the calendar 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.
Available 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 calendar days for the relevant period.
Time charter equivalent rate ("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
available 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 three For the six month
month period ended period ended
June 30, June 30,
------------------ ------------------
2009 2010 2009 2010
-------- -------- -------- --------
Voyage revenues 98,439 107,007 191,245 211,252
Voyage expenses (5,618) (7,990) (10,902) (14,774)
-------- -------- -------- --------
Total revenue, net of voyage
expenses 92,821 99,017 180,343 196,478
======== ======== ======== ========
Total available days 4,191 4,115 8,365 8,101
Daily Time charter equivalent $ 22,148 $ 24,062 $ 21,559 $ 24,254
Net daily revenue: We define this as the daily TCE rate including idle
time.
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 calendar days
for the relevant time period.
Daily general and administrative expense: This is calculated by dividing
general and administrative expense by total calendar days for the relevant
time period.
Expected Amortization Schedule for Fair Valued Time Charters for Next Year
(in USD millions) 3Q'10 4Q'10 1Q'11 2Q'11 Total
Amortization of unfavorable time
charters(1) 52.3 51.0 0.9 0.9 105.1
Amortization of favorable time
charters(2) (10.1) (10.1) (9.9) (10.1) (40.2)
(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 August 4, 2010:
Average
Year Charter Charter
Vessel Name Dwt Built Type Daily rate Expiration
Iron Miner 177,931 2007 Period $ 41,355 Feb 2012
Kirmar 164,218 2001 Period $ 49,000(net) May 2013
Iron Beauty 164,218 2001 Spot
Lowlands Beilun (1) 170,162 1999 Spot
Sandra (2) 180,274 2008 Period $ 26,500 Feb 2016
Christine (3,4) 180,000 2010 Period $ 25,000 Feb 2016
Total Capesize 1,036,803
Iron Manolis 82,269 2007 Period $ 22,000 Dec 2010
Iron Brooke 82,594 2007 Period $ 21,000 Dec 2010
Iron Lindrew 82,598 2007 Period $ 21,000 Dec 2010
Coal Hunter 82,298 2006 Period $ 22,000 Dec 2010
Pascha 82,574 2006 Period $ 21,000 Dec 2010
Coal Gypsy 82,221 2006 Period $ 22,000 Dec 2010
Iron Anne 82,220 2006 Period $ 22,000 Dec 2010
Iron Vassilis 82,257 2006 Period $ 22,000 Dec 2010
Iron Bill 82,187 2006 Period $ 22,000 Dec 2010
Santa Barbara 82,266 2006 Period $ 22,000 Dec 2010
Ore Hansa 82,209 2006 Period $ 22,000 Dec 2010
Iron Kalypso 82,224 2006 Period $ 22,000 Dec 2010
Iron Fuzeyya 82,209 2006 Period $ 22,000 Dec 2010
Iron Bradyn 82,769 2005 Period $ 22,000 Dec 2010
Total Kamsarmax 1,152,895
Grain Harvester 76,417 2004 Period $ 30,000 May 2011
Grain Express 76,466 2004 Period $ 22,000 Dec 2010
Iron Knight 76,429 2004 Period $ 22,000 Dec 2010
Coal Pride 72,493 1999 Period $ 24,000 May 2011
Isminaki 74,577 1998 Spot
Angela Star 73,798 1998 Spot
Elinakos 73,751 1997 Spot
Happy Day 71,694 1997 Period $ 27,000 Jul 2011
Iron Man (A) 72,861 1997 Spot
Coal Age (A) 72,824 1997 Period $ 21,250 Oct 2010
Fearless I (A) 73,427 1997 Spot
Barbara (A) 73,307 1997 Period $ 23,000 Aug 2010
Linda Leah (A) 73,317 1997 Period $ 24,000 Apr 2011
King Coal (A) 72,873 1997 Period $ 56,000 Jun 2011
Coal Glory (A) 73,670 1995 Period $ 24,000 May 2011
Powerful 70,083 1994 Spot
First Endeavour 69,111 1994 Spot
Rodon 73,656 1993 Spot
Birthday 71,504 1993 Spot
Renuar 70,155 1993 Period $ 22,500 Dec 2010
Fortezza 69,634 1993 Period $ 27,000 Jul 2011
Total Panamax 1,532,047
July M 55,567 2005 Spot
Mairouli 53,206 2005 Spot
Total Supramax 108,773
Emerald 45,588 1998 Spot
Princess I 38,858 1994 Spot
Marybelle 42,552 1987 Spot
Attractive 41,524 1985 Spot
Lady 41,090 1985 Spot
Total Handymax 209,612
Total Fleet 4,040,130
Average age 10.0Yrs
--------- ------- -------- ------------- ------------
Fleet to be delivered Type Dwt Estimated delivery (B)
-------- ------- ----------------------
Hope (tbn-Mairaki) (D) Capesize 181,000 November 2010
-------- ------- ----------------------
Fleet to be delivered (C) Type Dwt Estimated 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) A second charter on the vessel has been fixed commencing upon
completion of her current charter and through September 2015 at a
daily base rate of $28,000, with 50% profit sharing over the base rate
based on the monthly average BCI Time Charter Rate, as published daily
by the Baltic Exchange in London.
(2) The charter has a 50% profit sharing over the base rate based on the
monthly AV4 BCI Time Charter Rate, which is the Baltic Capesize Index
Average of four specific time charter routes as published daily by the
Baltic Exchange in London.
(3) The charter has a 50% profit sharing over the base rate on the monthly
average BCI Time Charter Rate, as defined above.
(4) Excel holds a 71.4% interest in the joint venture that owns the
vessel.
(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. As of August 4, 2010, Fritz, Benthe and Gayle Frances are
delayed in delivery whereas the delivery of Iron Lena may also be
delayed. These vessels may never be delivered at all.
(D) Excel holds a 100% interest in the company 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: Pavlos Kanellopoulos Chief Financial Officer Excel Maritime Carriers Ltd. 17th Km National Road Athens-Lamia & Finikos Street 145 64 Nea Kifisia Athens, Greece Tel: +30-210-62-09-520 Fax: +30-210-62-09-528 E-Mail: ir@excelmaritime.com www.excelmaritime.com