Three-Months ended Year ended
December 31, December 31,
------------------- ------------------
2009 2010 2009 2010
--------- --------- -------- ---------
(amounts in millions of U.S Dollars,
except per share data and daily TCE)
---------------------------------------
Voyage Revenues $ 102.6 $ 107.0 $ 391.7 $ 423.0
Net Income $ 81.8 $ 63.6 $ 339.8 $ 257.8
Adjusted Net Income (Loss) $ 4.0 $ 12.0 $ (8.2) $ 33.5
Earnings per Share-Diluted $ 1.00 $ 0.76 $ 4.85 $ 3.10
Adjusted Earnings (losses) per
Share-Diluted $ 0.05 $ 0.14 $ (0.12) $ 0.40
Adjusted EBITDA $ 62.0 $ 61.9 $ 231.7 $ 246.2
Time Charter Equivalent (TCE) per
day $ 22,686 $ 22,440 $ 21,932 $ 23,421
--------- --------- -------- ---------
A reconciliation of the non-GAAP measures discussed above is included in a
later section of this release.
Management Commentary:
Pavlos Kanellopoulos, Chief Financial Officer of Excel, stated, "We are
pleased to report a profitable set of operating results for the 4th Quarter
of 2010, complementing our consistently strong performance throughout 2010.
In particular, against a volatile freight environment during the 4th
Quarter, we recorded Adjusted EBITDA of $61.9m and Adjusted EPS of $0.14
contributing to full year 2010 Adjusted EBITDA and Adjusted EPS of $246.2m
and $0.40 respectively. Throughout the past period we continued to fix our
open vessels under time charters reaching a fleet wide time charter
coverage of 56% for 2011, which will enable us to increase our cash flow
visibility and further lower our breakeven levels. While we expect that
deliveries of new vessels in 2011 will cause some volatility in freight
rates, we remain cautiously optimistic in the dry bulk market outlook based
on emerging markets being the principal drivers of growth. We believe that
Excel with its diversified quality asset base and absence of newbuild
commitments is well positioned to generate strong cash flows and returns
through the investment cycle."
Fourth Quarter 2010 Results:
Excel reported voyage revenues for the fourth quarter of 2010 amounted to
$107.0 million as compared to $102.6 million for the same period in 2009,
an increase of approximately 4.3%.
Adjusted EBITDA for the fourth quarter of 2010 was $61.9 million compared
to $62.0 million for the fourth quarter of 2009, a decrease of
approximately 0.2%.
Net profit for the quarter amounted to $63.6 million or $0.76 per weighted
average diluted share compared to a net profit of $81.8 million or $1.00
per weighted average diluted share in the fourth quarter of 2009.
The fourth quarter 2010 results include a non-cash unrealized gain on
derivative financial instruments of $10.8 million compared to a non-cash
unrealized gain on derivative financial instruments of $8.1 million in the
corresponding period in 2009.
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 $40.9 million ($0.49 per weighted average diluted share) and $73.4
million ($0.90 per weighted average diluted share) for the fourth quarter
of 2010 and 2009, respectively.
In addition, the fourth quarter 2009 results include a non cash loss on
disposal of an ownership interest in one of our joint ventures amounting to
$3.7 million.
Adjusted net income, excluding all the above items, for the fourth quarter
of 2010 would have amounted to $12.0 million or $0.14 per weighted average
diluted share compared to an adjusted net income, excluding all the above
items, for the fourth quarter of 2009 of $4.0 million or $0.05 per weighted
average diluted share.
Included in the above adjusted net income is also the amortization of stock
based compensation expense of $2.2 million ($0.03 per weighted average
diluted share) and $5.5 million ($0.07 per weighted average diluted share),
for the quarter ended December 31, 2010 and 2009, respectively.
An average of 48.0 and 47.0 vessels were operated during the fourth quarter
of 2010 and 2009, respectively, earning a blended average time charter
equivalent rate of $22,440 and $22,686 per day, respectively.
A reconciliation of adjusted EBITDA to Net Income and adjusted net income
to net income and for a calculation of the TCE is provided in a later
section of this press release.
Year 2010 Results:
Voyage revenues for the year ended December 31, 2010 amounted to $423.0
million as compared to $391.7 million for the same period in 2009, an
increase of approximately 8%.
Adjusted EBITDA for the year was $246.2 million compared to $231.7 million
for the respective period of 2009, an increase of approximately 6.3%.
Net profit for the year amounted to $257.8 million or $3.10 per weighted
average diluted share compared to a net profit of $339.8 million or $4.85
per weighted average diluted share in the respective period of 2009.
The results for the year ended December 31, 2010 include a non-cash
unrealized gain on derivative financial instruments of $1.9 million
compared to a non-cash unrealized gain on derivative financial instruments
of $27.2 million in the corresponding period in 2009. In addition, the
results for the year ended December 31, 2009 include $0.1 million of a
non-cash gain on sale of a vessel and $3.7 million relating to the loss on
disposal of our ownership interest in one of our joint ventures.
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 $222.4 million ($2.68 per
weighted average diluted share) and $324.4 million ($4.63 per weighted
average diluted share) for the year ended December 31, 2010 and 2009,
respectively.
Adjusted net income, excluding all the above items, for the year ended
December 31, 2010 would have amounted to $33.5 million or $0.40 per
weighted average diluted share compared to an adjusted net loss, excluding
all the above items, for the respective period of 2009 of $8.2 million or
$0.12 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 $9.6 million ($0.12 per weighted average
diluted share) and $19.8 million ($0.28 per weighted average diluted
share), for the year ended December 31, 2010 and 2009, respectively.
An average of 47.7 and 47.2 vessels were operated during the year ended
December 31, 2010 and 2009, respectively, earning a blended average time
charter equivalent rate of $23,421 and $21,932 per day, respectively.
Please refer to a subsequent section of this press release for a
calculation of the TCE.
A reconciliation of adjusted EBITDA to Net Income and adjusted net income
to net income and for a calculation of the TCE is provided in a later
section of this pres release.
Fourth Quarter 2010 Corporate Developments
New-building Vessel
On October 1, 2010, we paid an amount of $15.6 million to the shipyard
constructing the M/V Mairaki, representing the scheduled installment due on
the vessel launching. The M/V Mairaki is a Capesize vessel with a carrying
capacity of 181,000 dwt and was delivered from the STX Shipyard in South
Korea on January 10, 2011 as discussed below.
Cashless exercise of warrants
On November 16, 2010, two holders of our warrants exercised the remaining
4,071,428 warrants on a cashless basis and received an aggregate of
1,813,108 Class A common shares. The number of common shares issued in
connection with the cashless exercise was based on the applicable market
price of the common shares, which was $6.31. No cash consideration was paid
on the exercise of the warrants for these common shares.
Recent Developments
On January 10, 2011, we took delivery of the vessel M/V Mairaki and paid an
amount of $17.6 million to the shipyard, representing the delivery
installment and other minor delivery costs of $0.2 million. Of this amount
$16.1 million was funded from a drawdown under the ship-owning company's
credit facility and the remaining amount was financed from the Company's
own funds. Upon its delivery, the M/V Mairaki, a Capesize vessel of 181,000
dwt commenced a period charter until February 2016 at a daily rate of
$28,000 plus 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.
On January 7, 2011, we entered into a Memorandum of Agreement (MOA) to sell
the M/V Marybelle, a Handymax vessel of 42,552 dwt built in 1987, for net
proceeds of approximately $10.0 million and realized a gain of
approximately $1.3 million which will be recognized upon delivery of the
vessel to her new owners. The vessel delivery took place on February 10,
2011. Following the sale, an amount of approximately $7.8 million was
repaid under our Nordea credit facility.
As of February 2011, Mr. Lefteris Papatrifon has resigned as a director of
the Company in order to pursue his own private activities.
Vessels' Fixtures
During December 2010, the M/V Iron Brooke (82,594 dwt, 2007), M/V Iron
Lindrew (82,598 dwt, 2007), M/V Iron Manolis (82,269 dwt, 2007), M/V Iron
Anne (82,220 dwt, 2006), M/V Iron Kalypso (82,224 dwt, 2006), M/V Iron
Fuzeyya (82,209 dwt, 2006) and M/V Ore Hansa (82,209 dwt, 2006) were fixed
under separate time charters for a period of 11-13 months at a daily rate
linked to the Baltic Panamax index (BPI) with a guaranteed minimum rate
(floor) ranging from $14,500 to $15,000 per day.
In February 2011, the M/V Coal Pride (72,493 dwt, 1999) and the M/V Coal
Glory (73,670 dwt, 1995) were fixed under separate time charters for a
period of 11-13 months at a daily rate of $16,750.
Time Charter Coverage
As of today, we have secured under contracted employment 92% and 56% of our
available days of our Capesize vessels and Kamsarmax/Panamax vessels
respectively, for the year ending December 31, 2011 while our secured
contracted employment for the whole fleet is 56% for the same period.
Also, we have secured under contracted employment 79% of our available days
of our Capesize vessels for the year ending December 31, 2012.
Conference Call Details:
Tomorrow March 1, 2011 at 10:30 A.M EST, 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 March 8,
2011 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 Excels' 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 PERIODS ENDED DECEMBER 31, 2009 AND 2010
(In thousands of U.S. Dollars, except for share and per share data)
Three month period ended
December 31,
2009 2010
------------ ------------
REVENUES:
Voyage revenues $ 102,634 $ 107,001
Time Charter fair value amortization 83,497 50,959
Revenue from managing related party vessels 106 61
------------ ------------
Revenue from operations 186,237 158,021
------------ ------------
EXPENSES:
Voyage expenses 4,971 8,005
Charter hire expense 8,276 8,275
Charter hire amortization 10,068 10,069
Commissions to a related party 658 957
Vessel operating expenses 20,316 22,205
Depreciation expense 31,075 31,821
Dry-docking and special survey cost 1,622 1,723
General and administrative expenses 12,178 8,336
------------ ------------
89,164 91,391
------------ ------------
Loss on disposal of JV ownership interest (3,705) -
Income from operations 93,368 66,630
------------ ------------
------------ ------------
OTHER INCOME (EXPENSES):
Interest and finance costs (12,004) (7,514)
Interest income 286 380
Gains on derivative financial instruments 107 3,908
Foreign exchange losses (91) (1)
Other, net 225 715
------------ ------------
Total other income (expenses), net (11,477) (2,512)
------------ ------------
Net income before taxes and loss assumed
(income earned) by non controlling interest 81,891 64,118
------------ ------------
US Source Income taxes (145) (114)
------------ ------------
Net income 81,746 64,004
------------ ------------
Loss assumed (income earned) by non-controlling
interest 30 (388)
------------ ------------
Net income attributable to Excel Maritime
Carriers Ltd. $ 81,776 $ 63,616
============ ============
Earnings per common share, basic $ 1.05 $ 0.78
============ ============
Weighted average number of shares, basic 77,895,466 82,044,441
============ ============
Earnings per common share, diluted $ 1.00 $ 0.76
============ ============
Weighted average number of shares, diluted 81,546,216 84,117,892
============ ============
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2010
(In thousands of U.S. Dollars, except for share and per share data)
Year ended December 31,
2009 2010
------------ ------------
REVENUES:
Voyage revenues $ 391,746 $ 422,966
Time Charter fair value amortization 364,368 262,305
Revenue from managing related party vessels 488 376
------------ ------------
Revenue from operations 756,602 685,647
------------ ------------
EXPENSES:
Voyage expenses 19,317 27,563
Charter hire expense 32,832 32,831
Charter hire amortization 39,952 39,945
Commissions to a related party 2,260 3,188
Vessel operating expenses 83,197 86,700
Depreciation expense 123,411 125,283
Dry-docking and special survey cost 11,379 11,243
General and administrative expenses 42,995 35,748
------------ ------------
355,343 362,501
------------ ------------
Gain on sale of vessel 61 -
Loss on disposal of JV ownership interest (3,705) -
Income from operations 397,615 323,146
------------ ------------
OTHER INCOME (EXPENSES):
Interest and finance costs (57,096) (37,893)
Interest income 809 1,436
Losses on derivative financial instruments (1,126) (27,290)
Foreign exchange losses (322) (44)
Other, net 408 243
------------ ------------
Total other income (expenses), net (57,327) (63,548)
------------ ------------
Net income before taxes and loss assumed
(income earned) by non controlling interest 340,288 259,598
------------ ------------
US Source Income taxes (660) (772)
------------ ------------
Net income 339,628 258,826
------------ ------------
Loss assumed (income earned) by non-controlling
interest 154 (997)
------------ ------------
Net income attributable to Excel Maritime
Carriers Ltd. $ 339,782 $ 257,829
============ ============
Earnings per common share, basic $ 5.03 $ 3.20
============ ============
Weighted average number of shares, basic 67,565,178 80,629,221
============ ============
Earnings per common share, diluted $ 4.85 $ 3.10
============ ============
Weighted average number of shares, diluted 69,999,760 83,102,923
============ ============
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2009 AND 2010 (UNAUDITED)
(In thousands of U.S. Dollars)
December 31, December
ASSETS 2009 31, 2010
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 100,098 $ 65,917
Restricted cash 34,426 6,721
Accounts receivable 3,784 7,961
Other current assets 9,792 16,602
------------ ------------
Total current assets 148,100 97,201
------------ ------------
FIXED ASSETS:
Vessels, net 2,660,163 2,622,631
Advances for vessels under construction 71,184 76,585
Office furniture and equipment, net 1,450 1,147
------------ ------------
Total fixed assets, net 2,732,797 2,700,363
------------ ------------
OTHER NON CURRENT ASSETS:
Time charters acquired, net 224,311 184,366
Derivative financial instruments - 923
Restricted cash 24,974 48,967
------------ ------------
Total assets $ 3,130,182 $ 3,031,820
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt, net of
deferred financing fees $ 134,681 $ 107,369
Accounts payable 5,349 11,101
Other current liabilities 47,801 32,322
Derivative financial instruments 29,343 21,945
------------ ------------
Total current liabilities 217,174 172,737
------------ ------------
Long-term debt, net of current portion and net
of deferred financing fees 1,121,765 1,046,672
Time charters acquired, net 280,413 18,108
Derivative financial instruments 24,558 30,155
------------ ------------
Total liabilities 1,643,910 1,267,672
------------ ------------
Commitments and contingencies - -
------------ ------------
STOCKHOLDERS' EQUITY:
Preferred stock - -
Common stock 799 851
Additional paid-in capital 1,046,606 1,061,134
Other Comprehensive Income (loss) (85) 211
Retained earnings 433,845 691,674
Less: Treasury stock (189) (189)
------------ ------------
Excel Maritime Carriers Ltd. Stockholders'
equity 1,480,976 1,753,681
------------ ------------
Non-controlling interests 5,296 10,467
------------ ------------
Total Stockholders' Equity 1,486,272 1,764,148
------------ ------------
Total liabilities and stockholders'
equity $ 3,130,182 $ 3,031,820
============ ============
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2010
(In thousands of U.S. Dollars)
Year ended December 31,
2009 2010
------------ ------------
Cash Flows from Operating Activities:
Net income $ 339,628 $ 258,826
Adjustments to reconcile net income to net
cash provided by operating activities (194,786) (79,117)
Changes in operating assets and liabilities:
Operating assets 3,629 (11,483)
Operating liabilities (1,219) (9,727)
------------ ------------
Net Cash provided by Operating Activities $ 147,252 $ 158,499
------------ ------------
Cash Flows from Investing Activities:
Advances for vessels under construction (9,379) (92,701)
Additions to vessel cost (113) (13)
Additions to office furniture and
equipment (146) (135)
Proceeds received from Oceanaut
liquidation 5,212 -
Joint ventures ownership transfer (1,591) -
Proceeds from sale of vessel 3,735 -
------------ ------------
Net cash used in Investing Activities $ (2,282) $ (92,849)
------------ ------------
Cash Flows from Financing Activities:
(Increase) decrease in restricted cash (34,400) 3,712
Proceeds from long-term debt 5,067 72,967
Repayment of long-term debt (216,851) (184,815)
Payment of financing costs (1,938) (802)
Issuance of common stock-related party 44,983 4,933
Issuance of common stock 45,147 -
Capital contributions from
non-controlling interest owners 3,328 4,174
------------ ------------
Net cash used in Financing Activities $ (154,664) $ (99,831)
------------ ------------
Net decrease in cash and cash equivalents (9,694) (34,181)
Cash and cash equivalents at beginning of year 109,792 100,098
------------ ------------
Cash and cash equivalents at end of the year $ 100,098 $ 65,917
============ ============
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Interest payments $ 56,159 $ 31,950
U.S. Source Income taxes 740 871
Adjusted EBITDA Reconciliation
(all amounts in thousands of U.S. Dollars)
Three-months ended Year ended
December 31, December 31,
2009 2010 2009 2010
----------- ----------- ----------- -----------
Net income $ 81,776 $ 63,616 $ 339,782 $ 257,829
Interest and finance
costs, net (1) 19,675 13,995 84,651 65,690
Depreciation 31,075 31,821 123,411 125,283
Dry-dock and special
survey cost 1,622 1,723 11,379 11,243
Loss on disposal of JV
ownership interest 3,705 - 3,705 -
Unrealized gain on
derivative financial
instruments (8,064) (10,769) (27,238) (1,943)
Amortization of T/C
fair values (2) (73,429) (40,890) (324,416) (222,360)
Stock based
compensation 5,528 2,247 19,847 9,647
Gain on sale of vessel - - (61) -
Taxes 145 114 660 772
----------- ----------- ----------- -----------
Adjusted EBITDA $ 62,033 $ 61,857 $ 231,720 $ 246,161
=========== =========== =========== ===========
(1) Includes swap interest paid and received
(2) Analysis:
Three-months ended Year ended
December 31, December 31,
2009 2010 2009 2010
----------- ----------- ----------- -----------
Non-cash amortization
of unfavorable time
charters in revenue $ (71,883) $ (50,959) $ (301,280) $ (235,379)
Non-cash accelerated
amortization of M/V
Sandra, Coal Pride and
Grain Harvester time
charter fair value due
to charter termination (11,614) - (63,088) -
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 10,069 39,952 39,945
----------- ----------- ----------- -----------
$ (73,429) $ (40,890) $ (324,416) $ (222,360)
=========== =========== =========== ===========
Reconciliation of Net Income to Adjusted Net Income (loss)
(all amounts in thousands of U.S. Dollars)
Three-months ended Year Ended
December 31, December 31,
2009 2010 2009 2010
----------- ----------- ----------- -----------
Net income $ 81,776 $ 63,616 $ 339,782 $ 257,829
Unrealized gain on
derivative financial
instruments (8,064) (10,769) (27,238) (1,943)
Gain on sale of vessel - - (61) -
Loss on disposal of JV
ownership interest 3,705 - 3,705 -
Amortization of T/C
fair values (73,429) (40,890) (324,416) (222,360)
----------- ----------- ----------- -----------
Adjusted Net Income
(loss) $ 3,988 $ 11,957 $ (8,228) $ 33,526
=========== =========== =========== ===========
Reconciliation of Earnings per Share (Diluted) to Adjusted Earnings
(losses) per Share (Diluted)
(all amounts in U.S. Dollars)
Three month period ended Year Ended
December 31, December 31,
2009 2010 2009 2010
----------- ----------- ----------- -----------
Earnings per Share
(Diluted) $ 1.00 $ 0.76 $ 4.85 $ 3.10
Unrealized gain on
derivative financial
instruments (0.10) (0.13) (0.41) (0.02)
Gain on sale of vessel - - - (*) -
Loss on disposal of JV
ownership interest 0.05 - 0.07 -
Amortization of T/C
fair values (0.90) (0.49) (4.63) (2.68)
----------- ----------- ----------- -----------
Adjusted Earnings
(losses) per Share
(Diluted) $ 0.05 $ 0.14 $ (0.12) $ 0.40
=========== =========== =========== ===========
(*) 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 derivatives, 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 derivative 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 (seven Capesize, 14 Kamsarmax, 21 Panamax, two Supramax and four
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 "will" "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 of 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 quarter and year ended December 31, 2010
compared to the corresponding periods in the prior year.
Vessel Employment
(In U.S. Dollars per day, unless otherwise stated)
Three-months ended Year ended
December 31, December 31,
2009 2010 2009 2010
Total calendar days 4,324 4,416 17,229 17,401
Available days under period charter 2,777 2,791 11,363 10,785
Available days under spot/short
duration charter 1,499 1,578 5,515 5,961
Utilization 98.9% 98.9% 98.0% 96.2%
Time charter equivalent per ship per
day-period 23,866 25,238 25,344 24,635
Time charter equivalent per ship per
day-spot 20,510 17,494 14,901 21,226
Time charter equivalent per ship per
day-weighted average 22,686 22,440 21,932 23,421
Net daily revenue per ship per day 22,434 22,201 21,485 22,540
Vessel operating expenses per ship per
day (4,698) (5,028) (4,829) (4,982)
Net Operating cash flows per ship per
day before G&A expenses 17,736 17,173 16,656 17,558
------- ------- ------- -------
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. The shipping industry uses available days to measure
the number of days in a period during which vessels should be capable of
generating revenue.
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-months ended Year ended
December 31, December 31,
------------------ ------------------
2009 2010 2009 2010
-------- -------- -------- --------
Voyage revenues 102,634 107,001 391,746 422,966
Voyage expenses (5,629) (8,962) (21,577) (30,751)
-------- -------- -------- --------
Total revenue, net of voyage
expenses 97,005 98,039 370,169 392,215
======== ======== ======== ========
Total available days 4,276 4,369 16,878 16,746
Daily Time charter equivalent $ 22,686 $ 22,440 $ 21,932 $ 23,421
Net daily revenue: We define this as the daily TCE rate including idle
time.
Daily vessel operating expenses: This includes crew costs, provisions, deck
and engine stores, lubricating oil, insurance, maintenance and repairs and
is calculated by dividing vessel operating expenses by total calendar days
for the relevant time period.
Daily general and administrative expense: This is calculated by dividing
general and administrative expense by total calendar days for the relevant
time period.
Expected Amortization Schedule for Fair Valued Time Charters for Next Year (in USD millions) 1Q'11 2Q'11 3Q'11 4Q'11 Total Amortization of unfavorable time charters (1) $ 0.8 $ 0.8 $ 0.9 $ 0.9 $ 3.4 Amortization of favorable time charters (2) $ (9.9) $ (10.1) $ (10.1) $ (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 expenseFleet List as of February 25, 2011:
Average
Year Charter Daily Charter
Vessel Name Dwt Built Type rate Expiration
Mairaki (1) 181,000 2011 Period $ 28,000 Feb 2016
Christine (1) (2) 180,000 2010 Period $ 25,000 Aug 2015
Sandra (1) 180,274 2008 Period $ 26,500 Feb 2016
Iron Miner 177,931 2007 Period $ 41,355 Feb 2012
Kirmar 164,218 2001 Period $ 49,000 (net) May 2013
Iron Beauty 164,218 2001 Spot
Lowlands Beilun (3) 170,162 1999 Period $ 28,000 Sept 2015
Total Capesize 1,217,803
Iron Manolis (4) 82,269 2007 Period $ 14,500 (floor) Dec 2011
Iron Brooke(4) 82,594 2007 Period $ 14,500 (floor) Dec 2011
Iron Lindrew(4) 82,598 2007 Period $ 14,500 (floor) Dec 2011
Coal Hunter 82,298 2006 Spot
Pascha 82,574 2006 Period $ 24,000 Nov 2011
Coal Gypsy 82,221 2006 Period $ 24,000 Nov 2011
Iron Anne(4) 82,220 2006 Period $ 14,500 (floor) Dec 2011
Iron Vassilis 82,257 2006 Spot
Iron Bill 82,187 2006 Spot
Santa Barbara 82,266 2006 Spot
Ore Hansa(4) 82,209 2006 Period $ 15,000 (floor) Feb 2012
Iron Kalypso(4) 82,224 2006 Period $ 15,000 (floor) Feb 2012
Iron Fuzeyya(4) 82,209 2006 Period $ 15,000 (floor) Jan 2012
Iron Bradyn 82,769 2005 Spot
Total Kamsarmax 1,152,895
Grain Harvester 76,417 2004 Period $ 30,000 May 2011
Grain Express 76,466 2004 Period $ 24,000 Dec 2011
Iron Knight 76,429 2004 Spot
Coal Pride 72,493 1999 Period $ 16,750 Apr 2012
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 Spot
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 Jul 2011
Coal Glory (A) 73,670 1995 Period $ 16,750 Apr 2012
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 Mar 2011
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
Attractive 41,524 1985 Spot
Lady 41,090 1985 Spot
Total Handymax 167,060
Total Fleet 4,178,578
Average age 10.0 Yrs
(1) The charter has a 50% profit sharing over the indicated base daily time
charter 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.
(2) The Company holds a 71.4% ownership interest in the joint venture that
owns the vessel.
(3) 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.
(4) Charter rate based on the average of the AV4 BPI rates, as published by
the Baltic Exchange for the preceding 15 days prior to hire payment
with a guaranteed minimum rate (floor) ranging from $14,500 to $15,000
per day.
Original
scheduled
New-building contracts (B) Type Dwt delivery
----------- ----------- -----------
Fritz (C) Capesize 180,000 May 2010
Benthe (C) Capesize 180,000 June 2010
Gayle Frances (C) Capesize 180,000 July 2010
Iron Lena (C) Capesize 180,000 August 2010
(A) These vessels were sold in 2007 and leased back on a bareboat charter
through July 2015.
(B) No refund guarantee has been received for these newbuildings and
Excel does not believe that the respective new building contracts will
materialize. As of February 28, 2011, all the vessels are delayed in
delivery and they may never be delivered at all.
(C) 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