-- Revenue from operations for the quarter amounted to $173.9 million as compared to $205.5 million in the second quarter of 2008. -- Net income for the quarter was $78.0 million or $1.05 per weighted average diluted share compared to $123.6 million or $3.06 per weighted average diluted share in the second quarter of 2008. The results for the second quarters of 2009 and 2008 include non-cash items of $14.3 million and $22.8 million, respectively relating to the unrealized gain from the valuation of interest rate swaps. Net income, excluding the above items, for the second quarter of 2009 would amount to $63.7 million or $0.86 per weighted average diluted share compared to respective income for the second quarter of 2008 of $100.8 million or $2.50 per weighted average diluted share. -- Adjusted EBITDA for the second quarter of 2009 was $57.3 million compared to $91.0 million for the second quarter of 2008. A reconciliation of adjusted EBITDA to Net Income is included in a subsequent section of this release. -- An average of 47 vessels were operated during the second quarter of 2009 earning a blended average time charter equivalent rate of $22,148 per day compared to $33,325 per day for the second quarter of 2008 earned by an average of 42.2 vessels.Six Months 2009 Highlights:
-- Revenue from operations for the six-month period ended June 30, 2009 increased to $396.0 million from $275.3 million in the six-month period ended June 30, 2008. -- Net income for the six-month period ended June 30, 2009 was $196.0 million or $3.27 per weighted average diluted share compared to $158.6 million or $5.28 per weighted average diluted share in the respective period of 2008. These results include non-cash items of $21.0 million in both periods relating to the unrealized gain from the valuation of interest rate swaps. Net income for 2009 includes also a non-cash item of $0.1 million relating to the resulting gain from the sale of vessel Swift. Net income, excluding the above items, would amount to $174.9 million or $2.92 per weighted average diluted share for the six month period ended June 30, 2009 compared to $137.6 million or $4.58 per weighted average diluted share for the respective period in 2008. -- Adjusted EBITDA for the six month period ended June 30, 2009 was $110.5 million compared to $143.0 million for the respective period of 2008. A reconciliation of adjusted EBITDA to Net Income is included in a subsequent section of this release.Year to Date Corporate Developments During the six-month period ended June 30, 2009, the following corporate developments took place, which are discussed in more detail in our earnings release for the first quarter of 2009 released on May 22, 2009:
-- Nordea and Credit Suisse loan amendments and equity infusion; -- Dividend suspension; and -- Receipt of $5.2 million, representing Oceanaut's liquidation proceeds.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 $3.8 million. As of December 31, 2008, the vessel's value was impaired and written down to her fair value, which approximated her sale proceeds and thus, the 2009 results were not materially affected. 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 loan with Nordea Bank. Vessels new fixtures On April 16, 2009 the M/V Sandra, a Capesize vessel of 180,274 dwt built in 2008, terminated her existing time charter. The Company received approximately $2.0 million as compensation for the early termination and entered into a new charter at a daily rate of $32,000 expiring in September 2010. A second charter on the vessel has been fixed commencing upon completion of her current charter and through February 2016 at a daily base rate of $25,000, with 50% profit sharing based on the monthly AV4 BCI charter rate as published by the Baltic Exchange. On June 8, 2009 the M/V Birthday, a Panamax vessel of 71,504 dwt built in 1993, began a new time charter for a period of 12-14 months at a daily rate of $16,500. On June 10, 2009 the M/V Barbara, a Panamax vessel of 73,307 dwt built in 1997, began a new time charter for a period of 12-14 months at a daily rate of $23,000. On June 22, 2009 the M/V Powerful, a Panamax vessel of 70,083 dwt built in 1994, began a new time charter for a period of 6-8 months at a daily rate of $20,500. Time Charter Coverage As of today, we have secured under time charter employment 66% of our operating days for the second half of 2009 and 53% for 2010. Management Commentary: Lefteris Papatrifon, Chief Financial Officer of Excel, stated, "We are very pleased with our financial and operating performance for the second quarter of 2009, given the prevailing market conditions. As we had anticipated earlier in the year, global economic conditions, which directly affected our sector, have started improving since the first quarter of this year. Our strategy of enhancing the stability of our cash flows by gradually fixing our vessels under charters at the proper time has continued to benefit us. We have not only maintained but we even improved our operating revenues and profitability, as depicted by the second quarter 2009 EBITDA of $57.3 million as compared to the first quarter 2009 EBITDA of $53.3 million. The recent further improvement of the economic sentiment in the US and China, as evidenced by various economic indicators and future market expectations, allows us to be cautiously optimistic for the future. We will continue implementing our strategy, which we expect will allow us to continue managing current market volatility while at the same time being able to take advantage of any opportunities presented to us." Second Quarter 2009 Results: The Company reported net income for the quarter of $78.0 million or $1.05 per weighted average diluted share as compared to net income of $123.6 million or $3.06 per weighted average diluted share for the second quarter of 2008. The results for the second quarters of 2009 and 2008 include non-cash items of $14.3 million and $22.8 million, respectively relating to the unrealized gain from the valuation of interest rate swaps. Net income, excluding the above items, for the second quarter of 2009 would amount to $63.7 million or $0.86 per weighted average diluted share compared to respective income for the second quarter of 2008 of $100.8 million or $2.50 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 Maritime Limited ("Quintana") on April 15, 2008 amounting to a net income of $65.3 million ($0.88 per weighted average diluted share) and $65.0 million ($1.61 per weighted average diluted share) for the second quarters of 2009 and 2008, respectively and the amortization of stock based compensation expense of $3.0 million and $2.6 million, respectively. In addition, effective January 1, 2009, we changed the method of accounting for dry-docking and special survey costs from the deferral method to the expense as incurred method, as well as, adopted FASB Staff Position APB 14-1 "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion" that changed the method of accounting for our Convertible Notes. (Please refer to a subsequent section of this Press Release for a further discussion on these accounting changes). Such changes were effected retrospectively to all periods presented and their effect in the three months to June 30, 2009 was a decrease in net income of approximately $1.3 million or $0.02 per weighted average diluted share in relation to the change in dry-dock and special survey policy and $1.4 million or $0.02 per weighted average diluted share in relation to the change in the accounting for the convertible notes. Revenues for the second quarter of 2009 amounted to $173.9 million as compared to $205.5 million for the same period in 2008, a decrease of approximately 15.4%. Included in revenues for the second quarters of 2009 and 2008 are $75.3 million and $73.3 million, respectively of non-cash revenues relating to the amortization of unfavorable time charters that were fair valued upon acquiring Quintana. An average of 47 vessels were operated during the second quarter of 2009 earning a blended average time charter equivalent rate of $22,148 per day compared to $33,325 per day for the second quarter of 2008 earned by an average of 42.2 vessels. Please refer to a subsequent section of this Press Release for a calculation of the TCE. Adjusted EBITDA for the second quarter of 2009 was $57.3 million compared to $91.0 million for the second quarter of 2008, a decrease of approximately 37.0%. Please refer to a subsequent section of this Press Release for a reconciliation of adjusted EBITDA to Net Income. Six Months to June 30, 2009: The Company reported net income for the period of $196.0 million or $3.27 per weighted average diluted share as compared to net income of $158.6 million or $5.28 per weighted average diluted share for the respective period of 2008. The results for the six-month periods ended June 30, 2009 and 2008 include a non-cash item of $21.0 million in both periods relating to the unrealized gain from the valuation of interest rate swaps. Net income for 2009 includes also a non-cash item of $0.1 million relating to the resulting gain from the sale of vessel Swift. Net income, excluding the above items, would amount to $174.9 million or $2.92 per weighted average diluted share for the six month period ended June 30, 2009 compared to $137.6 million or $4.58 per weighted average diluted share for the respective period in 2008. Included in the above adjusted net income are also the amortization of favorable and unfavorable time charters discussed above and amounting to a net income of $184.6 million ($3.1 per weighted average diluted share) out of which $51.5 million ($0.86 per weighted average diluted share) relate to the accelerate amortization of the time charter value of M/V Sandra and M/V Coal Pride assumed upon Quintana acquisition due to their termination and $65.0 million ($2.2 per weighted average diluted share) for the six-month periods ended June 30, 2009 and 2008, respectively and the amortization of stock based compensation expense of $5.4 million and $2.7 million, respectively. The effect of the accounting changes discussed above in the six-month period ended June 30, 2009 was a decrease in net income of approximately $3.3 million or $0.06 per weighted average diluted share in relation to the change in dry-dock and special survey policy and $2.8 million or $0.05 per weighted average diluted share in relation to the change in the accounting for the convertible notes. Revenues for the period amounted to $396.0 million as compared to $275.3 million for the same period in 2008, an increase of approximately 43.8%. Included in revenues for the six-month periods ended June 30, 2009 and 2008 are $204.4 million and $73.3 million, respectively of non-cash revenues relating to the amortization of unfavorable time charters that were fair valued upon acquiring Quintana. An average of 47.4 vessels were operated during the six-month period ended June 30, 2009, earning a blended average time charter equivalent (TCE) rate of $21,559 per day compared to $35,786 per day for the six-months period ended June 30, 2008 earned by an average of 30.1 vessels. Please refer to a subsequent section of this Press Release for a calculation of the TCE. Adjusted EBITDA for the period was $110.5 million compared to $143.0 million for the respective period of 2008, a decrease of approximately 22.7%. Please refer to a subsequent section of this Press Release for a reconciliation of adjusted EBITDA to Net Income. Conference Call Details: Today August 5, 2009 at 9:00 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 August 12, 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 CONSOLIDATED UNAUDITED STATEMENTS OF INCOME FOR THE THREE- MONTH PERIODS ENDED JUNE 30, 2008 (as adjusted) AND 2009 (In thousands of U.S. Dollars, except for share and per share data) Three-Month period ended June 30, 2008 (as adjusted) 2009 ---------- ---------- REVENUES: Voyage revenues 131,967 98,439 Time Charter fair value amortization 73,298 75,309 Revenue from managing related party vessels 232 112 ---------- ---------- Revenue from operations 205,497 173,860 ---------- ---------- EXPENSES: Voyage expenses 5,976 5,051 Charter hire expense 6,836 8,185 Charter hire amortization 8,315 9,970 Commissions to a related party 954 567 Vessel operating expenses 19,080 21,065 Depreciation expense 29,649 30,733 Dry-docking and special survey cost 3,695 3,826 General and administrative expenses 11,065 9,574 ---------- ---------- 85,570 88,971 ---------- ---------- Income from operations 119,927 84,889 ---------- ---------- OTHER INCOME (EXPENSES): Interest and finance costs (17,746) (14,651) Interest income 1,986 166 Interest rate swap gain 19,534 7,627 Foreign exchange loss (70) (125) Other, net (61) 263 ---------- ---------- Total other income (expenses), net 3,643 (6,720) ---------- ---------- Net income before taxes and income from investment in affiliate 123,570 78,169 ---------- ---------- US Source Income taxes (244) (177) ---------- ---------- Net income before income from investment in affiliate 123,326 77,992 ---------- ---------- Income from Investment in affiliate 175 - ---------- ---------- Net income 123,501 77,992 ---------- ---------- Less: Loss assumed by the non controlling interests 51 46 ---------- ---------- Net income attributable to Excel Maritime Carriers Ltd. 123,552 78,038 ========== ========== Earnings per common share, basic $ 3.10 $ 1.10 ========== ========== Weighted average number of shares, basic 39,836,681 70,986,320 ========== ========== Earnings per common share, diluted $ 3.06 $ 1.05 ========== ========== Weighted average number of shares, diluted 40,376,857 74,199,723 ========== ========== EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES CONSOLIDATED UNAUDITED STATEMENTS OF INCOME FOR THE SIX- MONTH PERIODS ENDED JUNE 30, 2008 (as adjusted) AND 2009 (In thousands of U.S. Dollars, except for share and per share data) Six-month period ended June 30, 2008 (as adjusted) 2009 ---------- ---------- REVENUES: Voyage revenues 201,491 191,245 Time Charter fair value amortization 73,298 204,446 Revenue from managing related party vessels 465 277 ---------- ---------- Revenue from operations 275,254 395,968 ---------- ---------- EXPENSES: Voyage expenses 10,144 9,877 Charter hire expense 6,836 16,281 Charter hire amortization 8,315 19,816 Commissions to a related party 1,822 1,025 Vessel operating expenses 28,127 42,210 Depreciation expense 37,641 61,266 Dry-docking and special survey cost 7,324 7,932 General and administrative expenses 14,832 16,865 ---------- ---------- 115,041 175,272 ---------- ---------- Gain on sale of vessel - 61 Income from operations 160,213 220,757 ---------- ---------- OTHER INCOME (EXPENSES): Interest and finance costs (23,476) (32,674) Interest income 4,625 242 Interest rate swap gain 17,631 8,185 Foreign exchange loss (208) (37) Other, net (133) (177) ---------- ---------- Total other income (expenses), net (1,561) (24,461) ---------- ---------- Net income before taxes and income from investment in affiliate 158,652 196,296 ---------- ---------- US Source Income taxes (489) (353) ---------- ---------- Net income before income from investment in affiliate 158,163 195,943 ---------- ---------- Income from Investment in affiliate 404 - ---------- ---------- Net income 158,567 195,943 ---------- ---------- Less: Loss assumed by the non controlling interests 51 87 ---------- ---------- Net income attributable to Excel Maritime Carriers Ltd. 158,618 196,030 ========== ========== Earnings per common share, basic $ 5.31 $ 3.35 ========== ========== Weighted average number of shares, basic 29,895,936 58,480,526 ========== ========== Earnings per common share, diluted $ 5.28 $ 3.27 ========== ========== Weighted average number of shares, diluted 30,048,407 59,935,790 ========== ========== EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AT DECEMBER 31, 2008 (as adjusted) AND JUNE 30, 2009 (unaudited) (In thousands of U.S. Dollars) December 31, 2008 June 30, ASSETS (as adjusted) 2009 ---------- ---------- CURRENT ASSETS: Cash and cash equivalents 109,792 86,511 Restricted cash 53 44 Accounts receivable 10,247 4,130 Other current assets 6,958 8,298 ---------- ---------- Total current assets 127,050 98,983 ---------- ---------- FIXED ASSETS: Vessels, net 2,786,717 2,722,095 Advances for vessels under construction 106,898 115,305 Office furniture and equipment, net 1,722 1,590 ---------- ---------- Total fixed assets, net 2,895,337 2,838,990 ---------- ---------- OTHER NON CURRENT ASSETS: Time charters acquired, net 264,263 244,447 Restricted cash 24,947 27,311 Investment in affiliate 5,212 - ---------- ---------- Total assets 3,316,809 3,209,731 ========== ========== LIABILITIES AND STOCKHOLDERS EQUITY CURRENT LIABILITIES: Current portion of long-term debt, net of deferred financing fees 220,410 121,107 Accounts payable 6,440 7,540 Other current liabilities 47,934 49,613 Current portion of financial instruments 40,119 29,163 ---------- ---------- Total current liabilities 314,903 207,423 ---------- ---------- Long-term debt, net of current portion and net of deferred financing fees 1,256,707 1,222,394 Time charters acquired, net 650,781 446,335 Financial instruments 41,020 30,974 ---------- ---------- Total liabilities 2,263,411 1,907,126 ---------- ---------- Commitments and contingencies - - ---------- ---------- STOCKHOLDERS EQUITY: Preferred stock - - Common stock 461 718 Additional paid-in capital 944,207 994,354 Other Comprehensive Loss (74) (74) Retained earnings 94,063 290,093 Less: Treasury stock (189) (189) ---------- ---------- Excel Maritime Carriers Ltd. Stockholders equity 1,038,468 1,284,902 ---------- ---------- Non-controlling interests 14,930 17,703 ---------- ---------- Total Stockholders Equity 1,053,398 1,302,605 ---------- ---------- Total liabilities and stockholders equity 3,316,809 3,209,731 ========== ========== EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS FOR THE SIX- MONTH PERIODS ENDED JUNE 30, 2008 (as adjusted) AND 2009 (In thousands of U.S. Dollars) Six-month period ended June 30, 2008 (as adjusted) 2009 ---------- ---------- Cash Flows from Operating Activities: Net income 158,618 196,030 Adjustments to reconcile net income to net cash provided by operating activities (41,393) (134,148) Changes in operating assets and liabilities: Operating assets (242) 4,777 Operating liabilities 18,337 2,779 ---------- ---------- Net Cash provided by Operating Activities 135,320 69,438 ---------- ---------- Cash Flows from Investing Activities: Acquisition of Quintana, net of cash acquired (692,420) - Advances for vessels under construction (8,820) (8,407) Additions to vessel cost (341) (114) Additions to office furniture and equipment (193) (72) Proceeds received from Oceanauts liquidation - 5,212 Proceeds from sale of vessel - 3,735 ---------- ---------- Net cash provided by (used in) Investing Activities (701,774) 262 ---------- ---------- Cash Flows from Financing Activities: Increase in restricted cash (109,992) (2,355) Proceeds from long-term debt 1,405,642 5,067 Repayment of long-term debt (817,845) (141,707) Payment of financing costs (14,959) (1,938) Share capital issuance costs (120) - Issuance of common stock - 45,000 Non controlling interests - 2,860 Dividends paid (12,680) - ---------- ---------- Net cash provided by (used in) Financing Activities 450,046 (93,073) ---------- ---------- Net decrease in cash and cash equivalents (116,408) (23,281) Cash and cash equivalents at beginning of period 243,672 109,792 ---------- ---------- Cash and cash equivalents at end of the period 127,264 86,511 ========== ========== SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid during the period for: Interest payments 11,152 33,761 U.S. Source income taxes 533 448 Non-cash financing activities Class A common stock issued as part of the consideration paid for the acquisition of Quintana 682,333 - Adjusted EBITDA Reconciliation (all amounts in thousands of U.S. Dollars) Three-month period Six-month period ended June 30, ended June 30, 2008 2009 2008 2009 Net income 123,552 78,038 158,618 196,030 Interest and finance costs, net (1) 19,001 21,116 22,238 45,248 Depreciation 29,649 30,733 37,641 61,266 Dry-dock and special survey cost 3,695 3,826 7,324 7,932 Unrealized swap gain (22,775) (14,258) (21,018) (21,001) Amortization of T/C fair values (2) (64,983) (65,339) (64,983) (184,630) Stock based compensation 2,589 2,993 2,712 5,404 Gain on sale of vessel - - - (61) Taxes 244 177 489 353 -------- -------- -------- -------- Adjusted EBITDA 90,972 57,286 143,021 110,541 ======== ======== ======== ======== (1) Includes swap interest paid and received (2) Analysis: Three-month period Six-month period ended June 30, ended June 30, 2008 2009 2008 2009 Non-cash amortization of unfavorable time charters in revenue (73,298) (75,309) (73,298) (152,972) Non-cash accelerated amortization of M/V Sandra and Coal Pride time charter fair value due to charter termination - - - (51,474) Non-cash amortization of favorable time charters in charter hire expense 8,315 9,970 8,315 19,816 ---------- ---------- ---------- ---------- (64,983) (65,339) (64,983) (184,630) ========== ========== ========== ========== Reconciliation of Net Income to Adjusted Net Income (all amounts in thousands of U.S. Dollars) Three-month period Six-month period ended June 30, ended June 30, 2008 2009 2008 2009 Net income 123,552 78,038 158,618 196,030 Unrealized swap gain (22,775) (14,258) (21,018) (21,001) Gain on sale of vessel - - - (61) --------- --------- --------- --------- Adjusted Net income 100,777 63,780 137,600 174,968 ========= ========= ========= ========= Reconciliation of Earnings per Share (Diluted) to Adjusted Earnings per Share (Diluted) (all amounts in U.S. Dollars) Three-month period Six-month period ended June 30, ended June 30, 2008 2009 2008 2009 Earnings per Share (Diluted) $ 3.06 $ 1.05 $ 5.28 $ 3.27 Unrealized swap gain (0.56) (0.19) (0.70) (0.35) Gain on sale of vessel - - - - -------- -------- -------- -------- Adjusted Earnings per Share (Diluted) $ 2.50 $ 0.86 $ 4.58 $ 2.92 ======== ======== ======== ========Accounting changes: Change in Dry-docking and Special survey accounting policy Effective January 1, 2009, we changed the method of accounting for dry-docking and special survey costs from the deferral method, under which costs associated with the dry-docking and special survey of a vessel are deferred and charged to expense over the period to a vessel's next scheduled dry-docking, to the direct expense method, under which the dry-docking and special survey costs will be expensed as incurred. We consider this as a preferable method because (i) it eliminates the subjectivity in the financial statements that occurs when determining which costs are eligible for deferral; such elimination of subjectivity enhances transparency in the balance sheet; (ii) is consistent with recent accounting policy and informal trends in the shipping industry and (iii) is consistent with the asset and liability framework in the concept statements. Adoption of new accounting pronouncements Effective January 1, 2009, we adopted FASB Staff Position, Accounting Principles Board 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) ("FSP APB 14-1"). FSP APB 14-1 requires issuers of convertible debt to account separately for the liability and equity components in a manner that reflects the issuers' non-convertible debt borrowing rate. The resulting debt discount is amortized over the period the debt is expected to be outstanding as additional non-cash interest expense. FSP APB 14-1 requires retrospective restatement of all periods presented with the cumulative effect of the change in accounting principles on prior periods recognized in retained earnings as of the beginning of the first period presented. Effective January 1, 2009, we adopted Statement of Financial Accounting Standard ("SFAS") No. 160, Accounting and Reporting of Non-controlling Interest in Consolidated Financial Statements, an Amendment of ARB No. 51. SFAS No. 160 amends Accounting Research Bulletin ("ARB") No. 51, to establish accounting and reporting standards for the non-controlling interest in a subsidiary and for the deconsolidation of a subsidiary. This standard defines a non-controlling interest, previously called a minority interest, as the portion of equity in a subsidiary not attributable, directly or indirectly, to us. With the exception of SFAS 160 which requires retrospective application only in the presentation and disclosure requirements, the other two accounting changes require retrospective application for all periods presented and were effected in the accompanying unaudited interim consolidated financial statements in accordance with FASB Statement No. 154 "Accounting Changes and Error Corrections", which requires that an accounting change should be retrospectively applied to all prior periods presented, unless it is impractical to determine the prior period impacts. Accordingly, the previously reported 2008 financial information has been recast to account for these changes. 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 the Company'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. 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 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. 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 for the three and six months ended June 30, 2009 compared to the corresponding periods 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:
Vessel Employment (In U.S. Dollars per day, unless otherwise stated) HANDYSIZE CAPESIZE FLEET PANAMAX FLEET FLEET TOTAL FLEET Three-month period ended June 30, 2008 2009 2008 2009 2008 2009 2008 2009 ------ ------ ------ ------ ------ ------ ------ ------ Total calendar days 304 455 2,810 3,185 728 637 3,842 4,277 Available days under period charter 274 434 2,516 2,275 131 136 2,921 2,845 Available days under spot/short duration charter 30 - 249 845 552 501 831 1,346 Utilization 100.0% 95.4% 98.4% 98.0% 93.8% 100.0% 97.7% 97.8% Time charter equivalent per ship per day- period 47,207 43,041 25,938 23,918 35,018 16,376 28,342 26,472 Time charter equivalent per ship per day- spot 118,100 - 53,975 14,097 45,824 11,200 50,860 13,018 Time charter equivalent per ship per day- weighted average 54,150 43,041 28,467 21,259 43,753 12,305 33,325 22,148 Net daily revenue per ship per day 54,150 41,009 28,011 20,823 41,022 12,305 32,545 21,702 Vessel operating expenses per ship per day (4,485) (5,693) (4,857) (4,812) (5,588) (4,943) (4,966) (4,925) Net Operating cash flows per ship per day before G&A expenses 49,665 35,316 23,154 16,011 35,434 7,362 27,579 16,777 ------ ------ ------ ------ ------ ------ ------ ------ Vessel Employment (In U.S. Dollars per day, unless otherwise stated) HANDYSIZE CAPESIZE FLEET PANAMAX FLEET FLEET TOTAL FLEET Six-month period ended June 30, 2008 2009 2008 2009 2008 2009 2008 2009 ------ ------ ------ ------ ------ ------ ------ ------ Total calendar days 304 905 3,720 6,335 1,456 1,341 5,480 8,581 Available days under period charter 274 884 3,186 4,626 424 276 3,884 5,786 Available days under spot/short duration charter 30 - 431 1,610 951 969 1,412 2,579 Utilization 100.0% 97.7% 97.2% 98.4% 94.4% 92.8% 96.6% 97.5% Time charter equivalent per ship per day-period 47,207 42,745 27,313 24,084 36,844 16,564 29,758 26,574 Time charter equivalent per ship per day-spot 118,100 - 62,561 11,432 45,687 8,424 52,370 10,302 Time charter equivalent per ship per day- weighted average 54,150 42,745 31,516 20,817 42,959 10,230 35,786 21,559 Net daily revenue per ship per day 54,150 41,731 30,646 20,495 40,564 9,496 34,585 21,015 Vessel operating expenses per ship per day (4,485) (5,426) (5,190) (4,811) (5,121) (5,086) (5,132) (4,919) Net Operating cash flows per ship per day before G&A expenses 49,665 36,305 25,456 15,684 35,443 4,410 29,453 16,096 ------ ------ ------ ------ ------ ------ ------ ------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 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 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 For the three-month period six-month period ended June 30, ended June 30, ------------------ ------------------ 2008 2009 2008 2009 -------- -------- -------- -------- Voyage revenues 131,967 98,439 201,491 191,245 Voyage expenses (6,930) (5,618) (11,966) (10,902) -------- -------- -------- -------- Time Charter Equivalent 125,037 92,821 189,525 180,343 ======== ======== ======== ======== Total available days 3,752 4,191 5,296 8,365 Daily Time charter equivalent $ 33,325 $ 22,148 $ 35,786 $ 21,559Net 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) 3Q09 4Q09 1Q10 2Q10 Total Amortization of unfavorable time charters (1) 76.1 72.7 70.8 69.6 289.2 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
Year Charter Average Vessel Name Dwt Built Type Expiration Date Iron Miner 177,931 2007 Period February 2012 Kirmar 164,218 2001 Period April 2013 Iron Beauty 164,218 2001 Period May 2010 Lowlands Beilun 170,162 1999 Period May 2010 Sandra 180,274 2008 Period September 2010 (1) Total Capesize 856,803 Iron Manolis 82,269 2007 Period December 2010 Iron Brooke 82,594 2007 Period December 2010 Iron Lindrew 82,598 2007 Period December 2010 Coal Hunter 82,298 2006 Period December 2010 Pascha 82,574 2006 Period December 2010 Coal Gypsy 82,221 2006 Period December 2010 Iron Anne 82,220 2006 Period December 2010 Iron Vassilis 82,257 2006 Period December 2010 Iron Bill 82,187 2006 Period December 2010 Santa Barbara 82,266 2006 Period December 2010 Ore Hansa 82,209 2006 Period December 2010 Iron Kalypso 82,224 2006 Period December 2010 Iron Fuzeyya 82,209 2006 Period December 2010 Iron Bradyn 82,769 2005 Period December 2010 1,152,- Total Kamsarmax 895 Grain Harvester 76,417 2004 Period December 2010 Grain Express 76,466 2004 Period December 2010 Iron Knight 76,429 2004 Period December 2010 Coal Pride 72,493 1999 Spot Isminaki 74,577 1998 Spot Angela Star 73,798 1998 Spot Elinakos 73,751 1997 Spot Happy Day 71,694 1997 Spot Iron Man (A) 72,861 1997 Period May 2010 Coal Age (A) 72,824 1997 Spot Fearless I (A) 73,427 1997 Spot Barbara (A) 73,307 1997 Period July 2010 Linda Leah (A) 73,317 1997 Spot King Coal (A) 72,873 1997 Period July 2011 Coal Glory (A) 73,670 1995 Period December 2009 Powerful 70,083 1994 Spot First Endeavour 69,111 1994 Spot Rodon 73,656 1993 Spot Birthday 71,504 1993 Period July 2010 Renuar 70,155 1993 Spot Fortezza 69,634 1993 Spot 1,532,- Total Panamax 047 July M 55,567 2005 Spot Mairouli 53,206 2005 Period December 2009 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 3,860,130 Average age 9.2 Yrs Fleet to be delivered Type Dwt Estimated delivery (B) --------------------------- -------- ------- ---------------------- Christine (D) Capesize 180,000 March 2010 Hope (E) Capesize 181,000 November 2010 Lillie (E) Capesize 181,000 December 2010 --------------------------- ------- Total fleet to be delivered 542,000 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 February 2016. (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. © 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