-- Net income of $12.3 million or $0.61 per share calculated on
19,959,257 shares for the period on revenue from operations of $36 million.
-- EBITDA was $22.5 million. Please refer to a subsequent section of this
Press Release for a reconciliation of EBITDA to Net Income.
-- An average of 17 vessels were operated earning a blended average time
charter equivalent rate of $22,485 per day.
-- Initiated a dividend payout policy and declared a quarterly dividend
of $0.20 per share for the first quarter 2007 payable on June 15th, 2007 to
shareholders of record on June 1st, 2007.
-- On March 6, 2007, Oceanaut, Inc., a newly organized blank check
company, completed its initial public offering of 18,750,000 units at an
offering price of $8.00 per unit. Excel Maritime is a corporate sponsor of
Oceanaut and owns approximately 18.9% of its shares. Please refer to a
subsequent section of this Press Release for additional information.
Recent Fleet Developments:
-- Entered two of its vessels into profitable long term employment with
first class charterers. Specifically, secured the M/V Renuar, a 1993 built
70,128 dwt Panamax under a time charter for a period of 22-24 months at
$26,000 per day. Also, secured the M/V Isminaki, a 1998 built 74,577 dwt
Panamax under a time charter for a period of 24 months at $32,000 per day.
Following these time charter agreements, 57% of Excel's fleet operating
days for 2007 are fixed under short and long term charters.
-- Within the context of Excel's fleet renewal program, sold the 1984
built 39,697 dwt Handymax drybulk carrier, M/V Goldmar, for net proceeds of
$15.85 million, realizing a book gain of approximately $6.2 million.
Following this sale, the average age of Excel's fleet is further reduced to
14.5 years.
CEO Christopher Georgakis commented: "We are pleased to report a stronger
year over year operational performance in our first quarter 2007 results,
which we believe is attributable both to the continued strength of the
shipping markets and the consistent implementation of our balanced fleet
deployment strategy.
"During the first quarter 2007, we entered two more of our vessels into
profitable long term employment to first class charterers. Our strategy has
been to take advantage of the current strength in freight rates and
gradually employ our vessels on long term charters, thereby securing strong
and predictable cash flows. Currently 57% of Excel's fleet operating days
for 2007 are fixed under short and long term charters with the remaining
43% operating in the spot market. Our goal is to increase the fixed
operating days for 2007 and 2008 to 70% and 50%, respectively.
"We are particularly pleased to announce that our Board of Directors has
approved the initiation of a quarterly dividend of $0.20 per share. We
believe that the initiation of a dividend policy was a natural progression
of the transformation strategy, in terms of fleet composition,
organizational structure and corporate governance, which we have been
implementing for the last couple of years. Through the implementation of
this strategy, we have expanded our fleet from five to 16 vessels reduced
the average fleet age by more than 12 years and have delivered on our
commitment to maintain low leverage, as evidenced by our net debt to total
capitalization ratio of 20% and cash and equivalents, including restricted
cash, of approximately $102.4 million as of March 31, 2007. We believe,
that our strong balance sheet, with its significant liquidity and low
leverage, enables us to pursue fleet expansion opportunities while, at the
same time reward our shareholders with a stable dividend."
First Quarter 2007 Results:
Total revenues for the first quarter 2007 amounted to $36 million as
compared to $29.5 million for the same period in 2006. Net income for the
first quarter 2007 amounted to $12.3 million versus $7.3 million for the
same period in 2006.
Earnings per share for the first quarter 2007, calculated on 19,959,257
shares were $0.61 compared to $0.37 in the first quarter of 2006. The
average number of shares outstanding in the first quarter of 2006 was
19,940,586.
The results of the first quarter 2007 include $0.1 million of income due to
Excel's participation in Oceanaut. It should be noted that currently,
Oceanaut is accounted for as an equity investment by Excel. The Company is
reviewing the relevant US GAAP accounting rules and guidelines in order to
determine if the equity method of accounting, which is the method currently
used, is the most appropriate method or if Oceanaut should be fully
consolidated. Either accounting treatment is expected to have a similar
effect on Excel's consolidated net income while the balance sheet
presentation would differ. It is expected that the Company will finalize
this issue during the second quarter of 2007.
EBITDA for the first quarter 2007 was $22.5 million compared to $17.8
million during the first quarter 2006. Please refer to a subsequent section
of this Press Release for a reconciliation of EBITDA to Net Income.
An average of 17 vessels were operated during the first quarter 2007
earning a blended average time charter equivalent rate of $22,485 per day,
compared to an average of 17 vessels operated during the first quarter 2006
earning a blended average time charter equivalent rate of $18,289 per day.
Initiation of a Dividend Policy:
Following a decision of its Board of Directors, Excel Maritime Carriers
commenced a dividend policy beginning with the first quarter 2007 and in
this respect, the Company plans to distribute quarterly a fixed dividend of
$0.20 per common share. The Board of Directors retains the authority to
alter the dividend policy at its discretion. In accordance with its
dividend policy, Excel Maritime announced the declaration of a dividend of
$0.20 per common share for the first quarter 2007 payable on June 15th,
2007 to shareholders of record on June 1st, 2007.The declaration of the
second quarter 2007 dividend is anticipated to take place concurrently with
the announcement of the Company's earnings for that period.
Excel Maritime Sponsors Oceanaut:
On March 6, 2007, Oceanaut, Inc., a newly organized blank check company,
completed its initial public offering of 18,750,000 units at an offering
price of $8.00 per unit. Excel Maritime is the sponsor and a shareholder of
Oceanaut, Inc., which was formed for the purpose of acquiring, through a
merger, capital stock exchange, asset acquisition, stock purchase or other
similar business combination, vessels or one or more operating businesses
in the shipping industry. Oceanaut's shares are trading on the American
Stock Exchange (AMEX) under the ticker symbol OKN.
Prior to the closing of the public offering, Oceanaut consummated a private
placement of 1,125,000 units at $8.00 per unit price and 2,000,000 warrants
at $1.00 per warrant to the Company. Each unit issued in the initial public
offering and the private placement consists of one share of Oceanaut's
common stock and one warrant to purchase one share of common stock. The
initial public offering and the private placement generated gross proceeds
in an aggregate of $161,000,000 to Oceanaut. Following the initial public
offering and the private placement, Excel Maritime owns approximately 18.9%
of the issued and outstanding shares of Oceanaut.
Conference Call and Webcast:
As already announced, tomorrow, Wednesday, May 23, 2007 at 10:00 a.m. EDT,
the Company's management will host a conference call to discuss the
results.
Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time
using the following numbers: 1-866-819-7111 (from the US), 0800-953-0329
(from the UK) or +44 (0)1452-542-301 (all other callers). Please quote
"Excel Maritime."
In case of any problem with the above numbers, please dial 1-866-223-0615
(from the US), 0800-694-1503 (from the UK) or +44 (0)1452-586-513 (all
other callers). Quote "Excel Maritime."
A telephonic replay of the conference call will be available until May 31,
2007 by dialing 1-866-247-4222 (from the US), 0800-953-1533 (from the UK)
or +44 1452-550-000 (all other callers). Access Code: 1838801#
Slides and audio webcast:
There will also be a live -- and then archived -- webcast of the conference
call, through the Excel Maritime Carriers website (www.excelmaritime.com).
Participants to the live webcast should register on the website
approximately 10 minutes prior to the start of the webcast.
Updated Fleet List:
The following table represents our fleet as of May 22, 2007. This table
takes into account the sale of the M/V Goldmar:
Name Type Dwt Year Built
------------ ------------ ------------
Panamax
Isminaki Panamax 74,577 1998
Angela Star Panamax 73,798 1998
Elinakos Panamax 73,751 1997
Happy Day Panamax 71,694 1997
Powerful Panamax 70,083 1994
First Endeavour Panamax 69,111 1994
Rodon Panamax 73,670 1993
Birthday Panamax 71,504 1993
Renuar Panamax 70,128 1993
Forteza Panamax 69,634 1993
------------ ------------ ------------
Total Panamax 10 717,950
------------ ------------ ------------
Handymax
Emerald Handymax 45,588 1998
Princess I Handymax 38,858 1994
Marybelle Handymax 42,552 1987
Attractive Handymax 41,524 1985
Lady Handymax 41,090 1985
Swift Handymax 37,687 1984
------------ ------------ ------------
Total Handymax 6 247,299
------------ ------------ ------------
Grand Total 16 965,249 14.5
------------ ------------ ------------
Summary Fleet Data:
First Quarter First Quarter
2007 2006
-------------- --------------
FLEET DATA
Average number of vessels (1) 17 17
Available days for fleet (2) 1,465 1,481
Calendar days for fleet (3) 1,530 1,530
Fleet utilization (4) 96% 97%
AVERAGE DAILY RESULTS
Time charter equivalent (5) $ 22,485 $ 18,289
Vessel operating expenses (6) $ 5,421 5,036
General and administrative expenses (7) $ 1,580 $ 1,143
Total vessel operating expenses (8) $ 7,001 $ 6,179
-------------- --------------
(1) Average number of vessels 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.
(2) Available days for fleet are the total calendar days the vessels were
in our possession for the relevant period after subtracting for off hire
days associated with major repairs, drydocks or special or intermediate
surveys.
(3) Calendar days are the total days we possessed the vessels in our fleet
for the relevant period including off hire days associated with major
repairs, drydockings or special or intermediate surveys.
(4) Fleet utilization is the percentage of time that our vessels were
available for revenue generating available days, and is determined by
dividing available days by fleet calendar days for the relevant period.
(5) Time charter equivalent, or TCE, 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. 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 Reconciliation
(In thousands of Dollars)
First Quarter First Quarter
Ended March 31, Ended March 31,
2007 2006
--------------- ---------------
Voyage Revenues 35,865 29,344
--------------- ---------------
minus Voyage Expenses 2,478 1,885
--------------- ---------------
minus Commission from a Related Party 446 365
--------------- ---------------
Total Revenue, net of voyage expenses 32,941 27,094
--------------- ---------------
Total Available days 1,465 1,481
--------------- ---------------
Time Charter Equivalent 22,485 18,289
--------------- ---------------
(6) Daily vessel operating expenses, which includes crew costs, provisions,
deck and engine stores, lubricating oil, insurance, maintenance and repairs
is calculated by dividing vessel operating expenses by fleet calendar days
for the relevant time period.
(7) Daily general and administrative expense is calculated by dividing
general and administrative expense by fleet calendar days for the relevant
time period.
(8) Total vessel operating expenses, or TVOE, is a measurement of our total
expenses associated with operating our vessels. TVOE is the sum of vessel
operating expenses and general and administrative expenses. Daily TVOE is
calculated by dividing TVOE by fleet calendar days for the relevant time
period.
Time Charter Equivalent (TCE) Results by Type of Vessel & Employment
First First
Quarter 2007 Quarter 2006
--------------- ---------------
Panamax spot TCE ($) N/A 17,527
Number of available days N/A 270
--------------- ---------------
Panamax period TCE ($) 24,760 22,733
Number of available days 886 617
--------------- ---------------
Handymax spot TCE ($) 20,132 12,547
Number of available days 414 446
--------------- ---------------
Handymax period TCE ($) 16,164 18,440
Number of available days 165 149
--------------- ---------------
Total fleet spot TCE ($) 20,132 14,426
Number of available days 414 716
--------------- ---------------
Total fleet period TCE ($) 23,412 21,898
Number of available days 1,051 766
--------------- ---------------
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
Condensed Statement of Cash Flows
(In thousands of Dollars)
First Quarter First Quarter
Ended March Ended March
31, 2007 31, 2006
(Unaudited) (Unaudited)
-------------- --------------
Cash and cash equivalents, beginning of year 86,289 58,492
Provided by (Used in):
Operating Activities 20,121 14,695
Investing Activities (11,167) (167)
Financing Activities (7,812) (11,645)
-------------- --------------
Net increase (decrease) in cash and cash
equivalents 1,142 2,883
-------------- --------------
Cash and cash equivalents, end of period 87,431 61,375
-------------- --------------
EBITDA Reconciliation (1)
(In thousands of Dollars)
First Quarter First Quarter
Ended March 31, Ended March 31,
2007 2006
--------------- ---------------
Net Income 12,265 7,336
--------------- ---------------
plus Net Interest Expense 2,353 3,105
--------------- ---------------
Plus Depreciation 7,118 7,062
--------------- ---------------
Plus Amortization 687 117
--------------- ---------------
Plus Taxes 56 139
--------------- ---------------
EBITDA 22,479 17,759
--------------- ---------------
(1) Excel Maritime considers EBITDA to represent net income plus net interest expense and depreciation and amortization. The Company's Management uses EBITDA as a performance measure. The Company believes that EBITDA is useful to investors, because the shipping industry is capital intensive and may involve significant financing costs. EBITDA is not an item 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 EBITDA may not be the same as that used by other companies in the shipping or other industries.
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND MARCH 31, 2006
(In thousands of Dollars, except per share data)
First Quarter First Quarter
2007 2006
Unaudited Unaudited
-------------- --------------
REVENUES
Voyage Revenues 35,865 29,344
Revenue from managing vessels 161 140
-------------- --------------
Revenue from Operations 36,026 29,484
-------------- --------------
EXPENSES
Voyage expenses 2,478 1,885
Commission from a Related party 446 365
Vessel operating expenses 8,294 7,705
Depreciation expense 7,118 7,062
Amortization for drydocking and special
survey 687 117
General and administrative expenses 2,418 1,749
-------------- --------------
21,441 18,883
-------------- --------------
-------------- --------------
Income from operations 14,585 10,601
-------------- --------------
OTHER INCOME (EXPENSES):
Interest and finance costs (3,514) (3,934)
Interest Income 1,161 829
Other, net (22) (21)
-------------- --------------
Total other income (expenses), net (2,375) (3,127)
-------------- --------------
============== ==============
Net Income from Operations 12,210 7,474
-------------- --------------
US Source Income Taxes 56 139
-------------- --------------
Net Income, after taxes and before
minority interest 12,154 7,335
Minority interest 2 -
Income from Investment in affiliate 109 -
-------------- --------------
Net income 12,265 7,335
-------------- --------------
-------------- --------------
Earnings per common share, basic $ 0.61 $ 0.37
Weighted average number of shares
basic 19,949,644 19,940,586
Earnings per common share, diluted $ 0.61 $ 0.37
Weighted average number of shares
diluted 19,959,257 19,940,586
-------------- --------------
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AT MARCH 31, 2007 (UNAUDITED) AND DECEMBER 31, 2006 (UNAUDITED)
(In thousands of U.S. Dollars, except per share data)
March 31, December 31,
2007 2006
Unaudited Unaudited
----------- -----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 87,431 86,289
Restricted cash 4,465 4,534
Accounts receivable 2,463 2,646
Inventories 1,326 1,066
Prepayments and advances 1,372 1,253
----------- -----------
Total Current Assets 97,057 95,788
----------- -----------
FIXED ASSETS:
Vessels', net 430,356 437,418
Office furniture & equipments, net 1,095 983
----------- -----------
Total fixed assets 431,451 438,401
----------- -----------
OTHER NON CURRENT ASSETS:
Investment in affiliate 11,114 -
Goodwill 400 400
Deferred Charges, net 5,262 4,296
Restricted cash 10,535 10,466
----------- -----------
Total Assets 555,819 549,351
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long term debt, net of deferred
financing fees 34,345 32,452
Accounts payable 5,433 3,178
Deferred revenue 2,479 1,892
Accrued liabilities 4,224 5,363
Financial Instruments 790 834
----------- -----------
Total Current Liabilities 47,271 43,719
LONG-TERM DEBT, net of current portion and net of
deferred financing fees 175,865 185,467
----------- -----------
Minority interest - 4
STOCKHOLDERS' EQUITY:
Preferred Stock, none issued
Common Stock,:19,595,153 A Class shares issued
and outstanding at December 31, 2006 and March
31, 2007, 135,326 B Class shares, issued and
outstanding at December 31,2006 and March
31,2007 197 197
Additional paid-in capital 182,668 182,410
Shares to be issued (298,403 A Class shares) 6,853 6,853
Accumulated Other Comprehensive Loss (79) (79)
Due from related party (2,024) (2,024)
Retained earnings 145,257 132,993
Less: Treasury stock (78,650 A Class shares and
588 B Class shares) at December 31, 2006 and
March 31, 2007 (189) (189)
----------- -----------
Total stockholders' equity 332,683 320,161
----------- -----------
Total Liabilities & Stockholders' Equity 555,819 549,351
----------- -----------
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIODS ENDED MARCH 31, 2007 (UNAUDITED) AND MARCH 31, 2006
(UNAUDITED)
(In thousands of Dollars)
March 31, March 31,
2007 2006
Unaudited Unaudited
----------- -----------
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
Net income for the period, after taxes 12,265 7,335
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation & Amortization 7,903 7,299
Other non cash expenses 214 230
Income from Investment in affiliate (114) -
Increase/Decrease in:
Current Assets (196) (1,084)
Increase/Decrease in:
Current Liabilities 1701 1,610
Payments for dry docking & special survey (1,652) (695)
a.Net cash from Operating Activities 20,121 14,695
----------- -----------
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Contribution to equity method investment (11,000) -
Office furniture & equipments (167) (167)
----------- -----------
b.Net cash from (used in) Investing Activities (11,167) (167)
----------- -----------
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Increase in restricted cash - (26)
Payment principal of loan (7,808) (11,619)
Minority Interest (4) -
----------- -----------
c.Net cash from (used in) Financing Activities (7,812) (11,645)
----------- -----------
----------- -----------
Net increase (decrease) in cash & cash
equivalents 1,142 2,883
Cash & cash equivalents at beginning of period 86,289 58,492
Cash & cash equivalents at end of the period 87,431 61,375
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest payments 3,587 2,623
About Excel Maritime Carriers Ltd.
The Company 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. The Company's current fleet consists of 16 vessels (ten Panamax
and six Handymax vessels) with a total carrying capacity of 965,249 dwt.
The Company was incorporated in 1988 and its common stock had been listed
on the American Stock Exchange (AMEX) since 1998. As of September 15, 2005
Excel Maritime is listed on the New York Stock Exchange (NYSE), trading
under the symbol EXM. 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 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.Contact Information: Contact: 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: nbornozis@capitallink.com www.capitallink.com Company: Christopher Georgakis Chief Executive 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: info@excelmaritime.com www.excelmaritime.com