-- 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 $ 31,291Daily 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