Three-Months Nine-Months ended ended September 30, September 30, ---------------------- ----------------------- 2009 2010 2009 2010 ---------- ----------- ----------- ----------- (amounts in millions of U.S. Dollars, except per share data and daily TCE) ---------- ----------- ----------- ----------- Voyage Revenues $ 97.9 $ 104.7 $ 289.1 $ 316.0 Net Income $ 62.0 $ 48.0 $ 258.0 $ 194.2 Adjusted Net Income (Loss) $ (2.6) $ 9.5 $ (12.2) $ 21.6 Earnings per Share-Diluted $ 0.79 $ 0.57 $ 3.91 $ 2.36 Adjusted Earnings (losses) per Share-Diluted $ (0.03) $ 0.11 $ (0.18) $ 0.26 Adjusted EBITDA $ 59.1 $ 62.3 $ 169.7 $ 184.3 Time Charter Equivalent (TCE) per day $ 21,912 $ 22,848 $ 21,676 $ 23,768 ---------- ----------- ----------- -----------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, "Excel delivered a strong set of results for the third quarter demonstrating resilient performance with growth in EBITDA, Adjusted Net Income and Operating Cash Flow. We also continued to make excellent progress in strengthening our balance sheet by repaying bank debt and complying with the original financial covenants of our $1.4 billion Credit Facility in order to enjoy a lower interest margin ahead of the end of the waiver period. Despite the significant volatility in the macroeconomic environment, we remain cautiously optimistic on the outlook of the markets in which we operate." Corporate Developments On July 1 2010, we made a $46 million payment under our $1.4 billion credit facility in accordance with the original credit facility dated April 14, 2008. We were also in compliance with the relevant financial covenants as applicable after the end of the waiver period. As a result, the excess cash flow provision was terminated and the loan applicable margin for the interest period starting July 1, 2010 and ending October 1, 2010 decreased from 2.5% to 1.25%. On September 30, 2010, we continued to be in compliance with the relevant financial covenants as applicable after the end of the waiver period and the applicable margin for the interest period starting October 1, 2010 and ending December 31, 2010 will continue to be at 1.25%. Fleet Developments
-- On October 27, 2010, the M/V Coal Gypsy (a Kamsarmax vessel of 82,221 dwt built in 2006), M/V Pascha (a Kamsarmax vessel of 82,574 dwt built in 2006) and M/V Grain Express (a Panamax vessel of 76,466 dwt built in 2004) were fixed under separate time charters for a period of 11-13 months at a daily gross rate of $24,000 each. The vessels will be delivered to their new charters upon completion of their current charters. -- On September 6, 2010, the M/V Fearless I, a Panamax vessel of 73,427 dwt built in 1997, was fixed under a new time charter for a period of 12-14 months at a daily gross rate of $24,650. -- On August 23, 2010, the M/V Powerful, a Panamax vessel of 70,083 dwt built in 1994, was fixed under a new time charter for a period of 11-13 months at a daily gross rate of $25,000. -- 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. Damage was 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 which were completed on September 22, 2010 at a total cost of approximately $2.4 million that was covered, subject to a small deductible, 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, which was resumed after the repairs' completion.Time Charter Coverage As of today, we have secured under time charter employment 68% of our operating days for the fourth quarter of 2010 and 27% for the year ending December 31, 2011. Third Quarter 2010 Results: Excel reported net profit for the quarter of $48.0 million or $0.57 per weighted average diluted share compared to a net profit of $62.0 million or $0.79 per weighted average diluted share in the third quarter of 2009. The third quarter 2010 results include a non-cash unrealized interest-rate swap loss of $4.1 million compared to a non-cash unrealized interest-rate swap loss of $1.8 million in the corresponding period in 2009. The changes in the fair values of interest rate swaps that do not meet the criteria for hedge accounting are recorded in income. 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 $42.5 million ($0.51 per weighted average diluted share) and $66.4 million ($0.84 per weighted average diluted share) for the third quarter of 2010 and 2009, respectively. Adjusted net income, excluding all the above items, for the third quarter of 2010 would have amounted to $9.5 million or $0.11 per weighted average diluted share compared to an adjusted net loss, excluding all the above items, for the third quarter of 2009 of $2.6 million or $0.03 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 $5.5 million ($0.07 per weighted average diluted share) and $8.9 million ($0.11 per weighted average diluted share), for the quarter ended September 30, 2010 and 2009, respectively. Voyage revenues for the third quarter of 2010 amounted to $104.7 million as compared to $97.9 million for the same period in 2009, an increase of approximately 6.9%. An average of 48.0 and 47.0 vessels were operated during the third quarter of 2010 and 2009, respectively, earning a blended average time charter equivalent rate of $22,848 and $21,912 per day, respectively. Please refer to a subsequent section of this press release for a calculation of the TCE. Adjusted EBITDA for the third quarter of 2010 was $62.3 million compared to $59.1 million for the third quarter of 2009, an increase of approximately 5.4%. Please refer to a subsequent section of this press release for a reconciliation of adjusted EBITDA to Net Income. Nine Months to September 30, 2010 Results: Excel reported net profit for the period of $194.2 million or $2.36 per weighted average diluted share compared to a net profit of $258.0 million or $3.91 per weighted average diluted share in the respective period of 2009. The results for the nine month period ended September 30, 2010 include a non-cash unrealized interest-rate swap loss of $8.8 million compared to a non-cash unrealized interest-rate swap gain of $19.2 million in the corresponding period in 2009. The changes in the fair values of interest rate swaps that do not meet the criteria for hedge accounting are recorded in income. In addition, the results for the nine month period ended September 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 on April 15, 2008 amounting to a net income of $181.5 million ($2.20 per weighted average diluted share) and $251.0 million ($3.80 per weighted average diluted share) for the nine month period ended September 30, 2010 and 2009, respectively. Adjusted net income, excluding all the above items, for the nine months to September 30, 2010 would have amounted to $21.6 million or $0.26 per weighted average diluted share compared to an adjusted net loss, excluding all the above items, for the respective period of 2009 of $12.2 million or $0.18 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 $7.4 million ($0.09 per weighted average diluted share) and $14.3 million ($0.22 per weighted average diluted share), for the nine months to September 30, 2010 and 2009, respectively. Voyage revenues for the nine month period ended September 30, 2010 amounted to $316.0 million as compared to $289.1 million for the same period in 2009, an increase of approximately 9.3%. An average of 47.6 and 47.3 vessels were operated during the nine months to September 30, 2010 and 2009, respectively, earning a blended average time charter equivalent rate of $23,768 and $21,676 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 $184.3 million compared to $169.7 million for the respective period of 2009, an increase of approximately 8.6%. Please refer to a subsequent section of this press release for a reconciliation of adjusted EBITDA to Net Income. Conference Call Details: Tomorrow November 3, 2010 at 10:00 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 November 10, 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 SEPTEMBER 30, 2009 AND 2010 (In thousands of U.S. Dollars, except for share and per share data) Three-month period Ended September 30, 2009 2010 ---------- ---------- REVENUES: Voyage revenues $ 97,867 104,713 Time Charter fair value amortization 76,425 52,604 Revenue from managing related party vessels 105 105 ---------- ---------- Revenue from operations 174,397 157,422 ---------- ---------- EXPENSES: Voyage expenses 4,469 6,292 Charter hire expense 8,275 8,275 Charter hire amortization 10,068 10,068 Commissions to a related party 577 723 Vessel operating expenses 20,671 21,364 Depreciation expense 31,070 31,819 Dry-docking and special survey cost 1,825 - General and administrative expenses 13,952 10,969 ---------- ---------- 90,907 89,510 ---------- ---------- Income from operations 83,490 67,912 ---------- ---------- OTHER INCOME (EXPENSES): Interest and finance costs (12,418) (8,435) Interest income 281 272 Losses on derivative financial instruments (9,418) (11,207) Foreign exchange losses (194) (295) Other, net 360 189 ---------- ---------- Total other income (expenses), net (21,389) (19,476) ---------- ---------- Net income before taxes and loss assumed (income earned) by non controlling interest 62,101 48,436 ---------- ---------- US Source Income taxes (162) (86) ---------- ---------- Net income 61,939 48,350 ---------- ---------- Loss assumed (income earned) by non-controlling interest 37 (352) ---------- ---------- Net income attributable to Excel Maritime Carriers Ltd. $ 61,976 $ 47,998 ========== ========== Earnings per common share, basic $ 0.83 $ 0.59 ========== ========== Weighted average number of shares, basic 75,107,733 81,077,800 ========== ========== Earnings per common share, diluted $ 0.79 $ 0.57 ========== ========== Weighted average number of shares, diluted 78,863,299 83,791,670 ========== ========== EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES CONSOLIDATED UNAUDITED STATEMENTS OF INCOME FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2010 (In thousands of U.S. Dollars, except for share and per share data) Nine month period ended September 30, 2009 2010 ---------- ---------- REVENUES: Voyage revenues $ 289,112 $ 315,965 Time Charter fair value amortization 280,871 211,346 Revenue from managing related party vessels 382 315 ---------- ---------- Revenue from operations 570,365 527,626 ---------- ---------- EXPENSES: Voyage expenses 14,346 19,558 Charter hire expense 24,556 24,556 Charter hire amortization 29,884 29,876 Commissions to a related party 1,602 2,231 Vessel operating expenses 62,881 64,495 Depreciation expense 92,336 93,462 Dry-docking and special survey cost 9,757 9,520 General and administrative expenses 30,817 27,412 ---------- ---------- 266,179 271,110 ---------- ---------- Gain on sale of vessel 61 - Income from operations 304,247 256,516 ---------- ---------- OTHER INCOME (EXPENSES): Interest and finance costs (45,092) (30,379) Interest income 523 1,056 Losses on derivative financial instruments (1,233) (31,198) Foreign exchange losses (231) (43) Other, net 183 (472) ---------- ---------- Total other income (expenses), net (45,850) (61,036) ---------- ---------- Net income before taxes and loss assumed (income earned) by non controlling interest 258,397 195,480 ---------- ---------- US Source Income taxes (515) (658) ---------- ---------- Net income 257,882 194,822 ---------- ---------- Loss assumed (income earned) by non-controlling interest 124 (609) ---------- ---------- Net income attributable to Excel Maritime Carriers Ltd. $ 258,006 $ 194,213 ========== ========== Earnings per common share, basic $ 4.03 $ 2.42 ========== ========== Weighted average number of shares, basic 64,083,909 80,152,297 ========== ========== Earnings per common share, diluted $ 3.91 $ 2.36 ========== ========== Weighted average number of shares, diluted 66,031,742 82,462,602 ========== ========== EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AT DECEMBER 31, 2009 AND SEPTEMBER 30, 2010 (UNAUDITED) (In thousands of U.S. Dollars) December 31, September 30, ASSETS 2009 2010 ----------- ----------- CURRENT ASSETS: Cash and cash equivalents $ 100,098 $ 85,358 Restricted cash 34,426 5,670 Accounts receivable 3,784 4,151 Other current assets 9,792 10,336 ----------- ----------- Total current assets 148,100 105,515 ----------- ----------- FIXED ASSETS: Vessels, net 2,660,163 2,654,343 Advances for vessels under construction 71,184 60,151 Office furniture and equipment, net 1,450 1,204 ----------- ----------- Total fixed assets, net 2,732,797 2,715,698 ----------- ----------- OTHER NON CURRENT ASSETS: Time charters acquired, net 224,311 194,435 Restricted cash 24,974 37,981 ----------- ----------- Total assets $ 3,130,182 $ 3,053,629 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt, net of deferred financing fees $ 134,681 $ 106,677 Accounts payable 5,349 9,289 Other current liabilities 47,801 42,448 Current portion of financial instruments 29,343 24,293 ----------- ----------- Total current liabilities 217,174 182,707 ----------- ----------- Long-term debt, net of current portion and net of deferred financing fees 1,121,765 1,065,820 Time charters acquired, net 280,413 69,067 Financial instruments 24,558 39,235 ----------- ----------- Total liabilities 1,643,910 1,356,829 ----------- ----------- Commitments and contingencies - - ----------- ----------- STOCKHOLDERS' EQUITY: Preferred stock - - Common stock 799 833 Additional paid-in capital 1,046,606 1,058,905 Other Comprehensive Loss (85) (886) Retained earnings 433,845 628,058 Less: Treasury stock (189) (189) ----------- ----------- Excel Maritime Carriers Ltd. Stockholders' equity 1,480,976 1,686,721 ----------- ----------- Non-controlling interests 5,296 10,079 ----------- ----------- Total Stockholders' Equity 1,486,272 1,696,800 ----------- ----------- Total liabilities and stockholders' equity $ 3,130,182 $ 3,053,629 =========== =========== EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2010 (In thousands of U.S. Dollars) Nine month period ended September 30, 2009 2010 ---------- ---------- Cash Flows from Operating Activities: Net income $ 257,882 $ 194,822 Adjustments to reconcile net income to net cash provided by operating activities (156,086) (64,131) Changes in operating assets and liabilities: Operating assets 4,269 (911) Operating liabilities 715 (1,413) ---------- ---------- Net Cash provided by Operating Activities $ 106,780 $ 128,367 ---------- ---------- Cash Flows from Investing Activities: Advances for vessels under construction (8,947) (76,267) Additions to vessel cost (113) (13) Additions to office furniture and equipment (101) (83) Proceeds received from Oceanaut liquidation 5,212 - Proceeds from sale of vessel 3,735 - ---------- ---------- Net cash used in Investing Activities $ (214) $ (76,363) ---------- ---------- Cash Flows from Financing Activities: (Increase) decrease in restricted cash (52,957) 15,749 Proceeds from long-term debt 5,067 66,967 Repayment of long-term debt (165,256) (157,765) Payment of financing costs (1,938) (802) Issuance of common stock-related party 44,983 4,933 Issuance of common stock 45,197 - Capital contributions from non-controlling interest owners 3,143 4,174 ---------- ---------- Net cash used in Financing Activities $ (121,761) $ (66,744) ---------- ---------- Net decrease in cash and cash equivalents (15,195) (14,740) Cash and cash equivalents at beginning of period 109,792 100,098 ---------- ---------- Cash and cash equivalents at end of the period $ 94,597 $ 85,358 ========== ========== SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid during the period for: Interest payments $ 45,320 $ 25,251 U.S. Source Income taxes 625 746 Adjusted EBITDA Reconciliation (all amounts in thousands of U.S. Dollars) Three month period Nine Month period ended September 30, ended September 30, 2009 2010 2009 2010 Net income 61,976 47,998 258,006 194,213 Interest and finance costs, net (1) 19,728 15,307 64,976 51,695 Depreciation 31,070 31,819 92,336 93,462 Dry-dock and special survey cost 1,825 - 9,757 9,520 Unrealized swap (gain) loss 1,827 4,063 (19,174) 8,826 Amortization of T/C fair values (2) (66,357) (42,536) (250,987) (181,470) Stock based compensation 8,915 5,529 14,319 7,400 Gain on sale of vessel - - (61) - Taxes 162 86 515 658 ---------- ---------- ---------- ---------- Adjusted EBITDA 59,146 62,266 169,687 184,304 ========== ========== ========== ========== (1) Includes swap interest paid and received (2) Analysis: Three month period Nine Month period ended September 30, ended September 30, 2009 2010 2009 2010 Non-cash amortization of unfavorable time charters in revenue (76,425) (52,604) (229,397) (184,420) 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) Non-cash amortization of favorable time charters in charter hire expense 10,068 10,068 29,884 29,876 ---------- ---------- ---------- ---------- (66,357) (42,536) (250,987) (181,470) ========== ========== ========== ========== Reconciliation of Net Income to Adjusted Net Income (loss) --------------------------------------------------------- (all amounts in thousands of U.S. Dollars) Three month period Nine month period ended September 30, ended September 30, 2009 2010 2009 2010 Net income 61,976 47,998 258,006 194,213 Unrealized swap (gain) loss 1,827 4,063 (19,174) 8,826 Gain on sale of vessel - - (61) - Amortization of T/C fair values (66,357) (42,536) (250,987) (181,470) ---------- ---------- ---------- ---------- Adjusted Net Income (loss) (2,554) 9,525 (12,216) 21,569 ========== ========== ========== ========== Reconciliation of Earnings per Share (Diluted) to Adjusted Earnings (losses) per Share (Diluted) ------------------------------------------------------------------- (all amounts in U.S. Dollars) Three month period Nine Month period ended September 30, ended September 30, 2009 2010 2009 2010 Net income $ 0.79 $ 0.57 $ 3.91 $ 2.36 Unrealized swap (gain) loss 0.02 0.05 (0.29) 0.10 Gain on sale of vessel - - - (*) - Amortization of T/C fair values (0.84) (0.51) (3.80) (2.20) ---------- ---------- ---------- ----------- Adjusted Net Income (loss) $ (0.03) $ 0.11 $ (0.18) $ 0.26 ========== ========== ========== ============= (*) 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 over 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 nine months ended September 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 Nine month period ended September ended September 30, 30, 2009 2010 2009 2010 Total calendar days 4,324 4,416 12,905 12,985 Available days under period charter 2,800 2,760 8,586 7,994 Available days under spot/short duration charter 1,436 1,516 4,016 4,383 Utilization 98.0% 96.8% 97.7% 95.3% Time charter equivalent per ship per day-period 24,270 24,212 25,823 24,425 Time charter equivalent per ship per day-spot 17,305 20,369 12,807 22,569 Time charter equivalent per ship per day-weighted average 21,912 22,848 21,676 23,768 Net daily revenue per ship per day 21,467 22,124 21,167 22,655 Vessel operating expenses per ship per day (4,781) (4,838) (4,873) (4,967) Net Operating cash flows per ship per day before G&A expenses 16,686 17,286 16,294 17,688 ------ ------ ------ ------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) Three month period Nine month period ended September 30, ended September 30, ---------------------- ---------------------- 2009 2010 2009 2010 ---------- ---------- ---------- ---------- Voyage revenues 97,867 104,713 289,112 315,965 Voyage expenses (5,046) (7,015) (15,948) (21,789) ---------- ---------- ---------- ---------- Total revenue, net of voyage expenses 92,821 97,698 273,164 294,176 ========== ========== ========== ========== Total available days 4,236 4,276 12,602 12,377 Daily Time charter equivalent $ 21,912 $ 22,848 $ 21,676 $ 23,768Net 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) 4Q'10 1Q'11 2Q'11 3Q'11 Total Amortization of unfavorable time charters (1) 51.0 0.8 0.8 0.8 53.4 Amortization of favorable time charters (2) (10.1) (10.0) (10.0) (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 November 1, 2010: Year Charter Daily Average Vessel Name Dwt Built Type rate Charter Expiration Iron Miner 177,931 2007 Period $ 41,355 Feb 2012 Kirmar 164,218 2001 Period $ 49,000 May 2013 (net) Iron Beauty 164,218 2001 Spot Lowlands Beilun (1) 170,162 1999 Period $ 28,000 Sept 2015 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 (5) 82,574 2006 Period $ 21,000 Dec 2010 Coal Gypsy (5) 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 (5) 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 Nov 2010 Fearless I (A) 73,427 1997 Period $ 24,650 Oct 2011 Barbara (A) 73,307 1997 Spot 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 Period $ 25,000 Aug 2011 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 10.2 Yrs --------- -------- ------- --------- --------- New-building contracts Type Dwt Estimated delivery (B) ----------- ----------- ---------------------- Hope (tbn-Mairaki) Capesize 181,000 January 2011 ----------- ----------- ---------------------- Original scheduled New-building contracts (C) Type Dwt delivery (B) -------- ----------- ---------------------- Fritz (D) Capesize 180,000 May 2010 Benthe (D) Capesize 180,000 June 2010 Gayle Frances (D) Capesize 180,000 July 2010 Iron Lena (D) Capesize 180,000 August 2010 -------- ----------- ----------------------(1) The charter has a 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. (5) A second charter on the vessel has been fixed commencing upon completion of her current charter and through December 2011. (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. In particular for vessel Hope (tbn Mairaki) the delivery date has been set on January 10, 2011 which is approximately two months after our initial estimate. (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 November 1, 2010, all the vessels are delayed in delivery and they may never be delivered at all. (D) 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