-- On April 15, 2008, the Company successfully completed the acquisition of Quintana Maritime Limited, creating a combined company that operates a fleet of 47 vessels with a total carrying capacity of approximately 3.7 million DWT and an average age of approximately 8.7 years; -- The second quarter 2008 results include the consolidated results of Excel and Quintana starting from April 16, 2008. In this respect, approximately $14.1 million of revenues earned by Quintana between April 1 and April 15, 2008 have not been included in the second quarter results; -- Revenues from operations increased by approximately 451% to $205.5 million in the second quarter of 2008 compared to $37.3 million in the corresponding period in 2007. Revenues include non-cash adjustments of approximately $75.7 million, relating to the amortization of unfavorable time charters that were fair valued upon acquiring Quintana; -- Net income increased by approximately 534% to $126.8 million or $3.14 per diluted share, compared to $20.0 million or $1.00 per diluted share in the second quarter of 2007. Net income includes a non-cash interest-rate swap gain in the period of approximately $22.8 million compared to $0.3 million in the second quarter of 2007. -- Adjusted EBITDA was approximately $88.6 million compared to $23.7 million in the second quarter of 2007, an increase of approximately 274%; -- An average of 42.2 vessels were operated earning a blended average adjusted time charter equivalent, net rate of $33,329 per day compared to $25,142 per per day for the second quarter of 2007; -- The Company increased its quarterly minimum dividend guidance by 100% to $0.40 per share.Second Quarter 2008 Results: The acquisition of Quintana was accounted for using the "purchase method" of accounting, whereby all Quintana's assets were fair valued, resulting in goodwill of approximately $321m. In particular, all Quintana's time charters were fair valued, giving rise to significant deferred assets and liabilities that will be amortized to income over their remaining lives. The second quarter results reflect consolidated Excel-Quintana results from April 16, the day following the closing of the Quintana acquisition transaction. In this respect, revenues and expenses from ex-Quintana vessels start contributing to Excel's results from April 16 onwards. The first quarterly results that will reflect a full quarter's operations of the combined entity will be the third quarter of 2008. For the second quarter of 2008, Excel reported net income of $126.8 million, or $3.14 per diluted share, compared to net income of $20.0 million, or $1.00 per diluted share, in the second quarter of 2007. The second quarter 2008 results include a non-cash unrealized interest-rate swap gain of $22.8 million due to increased forward interest rates during the period compared to an unrealized interest-rate swap gain of $0.2 million in the corresponding period in 2007. Swap gains and losses are recorded in income as they do not meet the criteria for hedge accounting. The second quarter results of 2007 also include a gain on sale of vessels of $6.2 million whereas no such gains were recorded in the second quarter of 2008. Before the unrealized swap gains and gain on sale of vessels, adjusted net income is $104.0 million, or $2.58 per adjusted diluted share, compared to $13.5 million or $0.68 per share in the second quarter 2007, an increase of approximately 670%. Revenues for the second quarter of 2008 amounted to $205.5 million as compared to $37.3 million for the same period in 2007, an increase of approximately 451%. Included in revenues for the second quarter of 2008 are $75.7 million of non-cash revenues relating to the amortization of underwater time charters. There were no such non-cash revenue adjustments recorded in the corresponding period in 2007. General and administrative expenses for the second quarter of 2008 include one-off charges relating to the merger of approximately $1.9 million, or $0.05 per diluted share. In addition the Company initiated a stock based incentive program. Amortization cost relating to the plan during the quarter was approximately $2.6 million or $0.06 per diluted share. Adjusted EBITDA for the second quarter of 2008 was $88.6 million compared to $23.7 million for the second quarter of 2007, an increase of approximately 274%. Adjusted EBITDA for the second quarter excludes bareboat charter amortization of approximately $8.3 million relating to favorable bareboat time charters that were fair valued upon the acquisition of Quintana and reflected as an asset on Excel's balance sheet. The amortization increases charter hire expense on Excel's income statement and there was no such amortization in the corresponding period in 2007. It also excludes the amortization of unfavorable time charters as discussed above. Please refer to a subsequent section of this Press Release for a reconciliation of adjusted EBITDA to Net Income. An average of 42.2 vessels were operated during the second quarter of 2008 earning a blended average adjusted time charter equivalent rate of $33,329 per day, compared to an average of 16.4 vessels operated during the second quarter of 2007 earning a blended average time charter equivalent rate of $25,142 per day. Stamatis Molaris, President and Chief Executive Officer of Excel, stated, "The second quarter results demonstrate the significant growth of Excel following the acquisition of Quintana, even though Quintana's results are not fully reflected in the second quarter 2008 results. The acquisition has completely transformed Excel in terms of growth prospects as well as cash flow security. The recent minimum dividend guidance of $0.40 per share is a reflection of Excel's strong financial position. We are all very optimistic for our future performance despite the recent market volatility. The significant time charter cover inherited from Quintana provides a stable platform for us to enhance our performance and enhance returns for our shareholders in the future." Six Months to June 30, 2008 For the six-month period ended June 30, 2008, Excel reported net income of $165.2 million, or $5.50 per diluted share, compared to net income of $32.2 million, or $1.61 per diluted share, for the corresponding period in 2007. The first half 2008 results include a non-cash unrealized swap gain of $21.0 million compared to an unrealized swap gain of $0.3 million in the first half of 2007. The first half results of 2007 also include a gain on sale of vessels of $6.2 million whereas no such gains were recorded in the first half of 2008. Before the unrealized swap gains and gain on sale of vessels, adjusted net income is $144.2 million, or $4.80 per adjusted diluted share, compared to $25.8 million or $1.29 per share in the first half 2007, an increase of approximately 459%. Revenues for the six months to June 30, 2008 amounted to $275.3 million as compared to $73.4 million for the same period in 2007, an increase of 275%. Included in revenues for the first half of 2008 is a non-cash time charter amortization of $75.7 million, as discussed above. There were no such non-cash revenues recorded in the corresponding period in 2007. Adjusted EBITDA for the first half of 2008 was $140.7 million compared to $46.4 million for the first half of 2007, an increase of approximately 203%. Adjusted EBITDA for the first half of 2008, excludes bareboat charter amortization of approximately $8.3 million relating to favorable bareboat time charters. There was no such amortization in the corresponding period in 2007. It also excludes the amortization of unfavorable time charters as discussed above. Please refer to a subsequent section of this Press Release for a reconciliation of adjusted EBITDA to Net Income. An average of 30.1 vessels were operated during the first half of 2008 earning a blended average adjusted time charter equivalent rate of $35,786 per day, compared to an average of 16.7 vessels operated during the second quarter of 2007 earning a blended average time charter equivalent rate of $23,760 per day. Time Charter Coverage: The current combined fleet charter coverage, after the acquisition of Quintana's fleet, for the second half of 2008 and for the full years 2009 and 2010 is expected to be approximately 80%, 59% and 50% respectively. As a result, the projected net revenues under fixed time charters for the second half of 2008 and for the full years 2009 and 2010 is expected to be approximately $207 million, $280 million and $221 million respectively, before any non-cash revenue adjustments. During the remaining part of 2008 Excel will have 8 Panamax vessels, 2 Supramax vessels and 5 Handymax vessels rolling off from their current charters. Stamatis Molaris, President and Chief Executive Officer of Excel, stated, "Post-merger, Excel's combined fleet is deployed in a more balanced employment approach. We are taking advantage of the positive rate environment to expand our charter coverage for 2009 and beyond to secure consistent cash flows and ongoing profitability to our shareholders, while at the same time we are benefitting from operating certain part of our fleet under short-term period charters or in the spot market." Dividend Guidance: The Board of Directors has declared a dividend of $0.40 per share, payable on September 15, 2008 to all shareholders of record as of September 1, 2008. Inclusive of this dividend, Excel Maritime has declared an aggregate dividend of $1.40 per share since May 2007. The dividend payment of $0.40 per share is consistent with the guidance provided by the Board of Directors. The Board retains the authority to alter the dividend policy at its discretion.
Conference Call details: Today, August 11, 2008 at 10:00 AM EDT, the companys 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." In case of any problems with the above numbers, please dial 1 866 223 0615 (US Toll Free Dial In), 0800 694 1503 (UK Toll Free Dial In) or +44 (0)1452 586 513 (Standard International Dial In). Please Quote "Excel Maritime to the operator." A telephonic replay of the conference call will be available until August 18, 2008 by dialing 1 866 247 4222 (US Toll Free Dial In), 0800 953 1533 (UK Toll Free Dial In) or +44 (0)1452 550 000 (Standard International Dial In). Access Code: 1838801# Slides and audio webcast: There will also be a live, and then archived, webcast of the conference call, available through Excel Maritime Carriers' website (www.excelmaritime.com). Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. - Financial and Other Financial Data Follow -
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2008 AND JUNE 30, 2007 (In thousands of U.S. Dollars, except for share and per share data) Second Second Quarter Quarter 2008 2007 Unaudited Unaudited ----------- ----------- REVENUES: Voyage revenues 129,614 37,126 Time charter fair value amortization 75,651 -- Revenue from managing related party vessels 232 204 ----------- ----------- Revenue from operations 205,497 37,330 ----------- ----------- EXPENSES: Voyage expenses 5,976 2,668 Charter hire expense 15,151 -- Commission to a related party 954 467 Vessel operating expenses 19,080 8,229 Depreciation expense 29,649 6,957 Amortization for drydocking and special survey 1,771 868 General and administrative expenses 11,065 2,873 ----------- ----------- 83,646 22,062 ----------- ----------- ----------- ----------- Gain on sale of vessels -- 6,194 ----------- ----------- ----------- ----------- Income from operations 121,851 21,462 ----------- ----------- OTHER INCOME (EXPENSES): Interest and finance costs (16,463) (3,484) Interest income 1,986 1,424 Interest rate swap gain, net 19,534 295 Foreign exchange losses (70) (40) Other, net (61) (2) ----------- ----------- Total other income (expenses), net 4,926 (1,807) ----------- ----------- ----------- ----------- Net income before taxes, minority interest and income from investment in affiliate 126,777 19,655 US source income taxes (244) (56) ----------- ----------- Net income before minority interest income from investment in affiliate 126,533 19,599 Minority interest 51 -- Income from investment in affiliate 175 354 ----------- ----------- Net income 126,759 19,953 ----------- ----------- Earnings per common share, basic $ 3.18 $ 1.00 Weighted average number of shares, basic 39,836,681 19,949,644 Earnings per common share, diluted $ 3.14 $ 1.00 Weighted average number of shares, diluted 40,376,857 19,960,736 ----------- ----------- EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND JUNE 30, 2007 (In thousands of U.S. Dollars, except for share and per share data) First Half First Half 2008 2007 Unaudited Unaudited ----------- ----------- REVENUES: Voyage revenues 199,138 72,991 Time charter fair value amortization 75,651 -- Revenue from managing related party vessels 465 365 ----------- ----------- Revenue from operations 275,254 73,356 ----------- ----------- EXPENSES: Voyage expenses 10,144 5,146 Charter hire expense 15,151 -- Commission to a related party 1,822 913 Vessel operating expenses 28,127 16,523 Depreciation expense 37,641 14,075 Amortization for drydocking and special survey 3,268 1,555 General and administrative expenses 14,832 5,280 ----------- ----------- 110,985 43,492 ----------- ----------- ----------- ----------- Gain on sale of vessels -- 6,194 ----------- ----------- ----------- ----------- Income from operations 164,269 36,058 ----------- ----------- OTHER INCOME (EXPENSES): Interest and finance costs (20,911) (7,117) Interest income 4,625 2,585 Interest rate swap gain, net 17,631 414 Foreign exchange losses (208) (51) Other, net (133) (24) ----------- ----------- Total other income (expenses), net 1,004 (4,193) ----------- ----------- ----------- ----------- Net income before taxes, minority interest and income from investment in affiliate 165,273 31,865 US source income taxes (489) (112) ----------- ----------- Net income before minority interest income from investment in affiliate 164,784 31,753 Minority interest 51 2 Income from investment in affiliate 404 463 ----------- ----------- Net income 165,239 32,218 ----------- ----------- Earnings per common share, basic $ 5.53 $ 1.61 Weighted average number of shares, basic 29,895,936 19,949,644 Earnings per common share, diluted $ 5.50 $ 1.61 Weighted average number of shares, diluted 30,048,407 19,960,001 ----------- ----------- EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS At June 30, 2008 (UNAUDITED) AND DECEMBER 31, 2007 (In thousands of U.S. Dollars, except for share and per share data) June 30, December 2008 31, 2007 Unaudited ----------- ----------- ASSETS CURRENT ASSETS: Cash and cash equivalents 127,264 243,672 Restricted cash 21,203 3,175 Accounts receivable 6,254 1,506 Other current assets 8,936 4,381 ----------- ----------- Total Current Assets 163,657 252,734 ----------- ----------- FIXED ASSETS: Vessels, net 2,700,786 527,164 Advances for acquisition of vessels / newbuildings 179,907 -- Office furniture and equipment, net 1,729 1,466 ----------- ----------- Total Fixed Assets, net 2,882,422 528,630 ----------- ----------- OTHER NON-CURRENT ASSETS: Goodwill 321,404 400 Deferred assets, net 14,625 15,119 Time charters acquired, net 284,394 -- Restricted cash 103,789 11,825 Investment in affiliate 15,900 15,688 ----------- ----------- Total Assets 3,786,191 824,396 ----------- ----------- LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt, net of deferred financing fees 278,127 39,179 Accounts payable 9,410 4,306 Other current liabilities 44,195 10,449 Current portion of financial instruments 20,819 2,056 ----------- ----------- Total Current Liabilities 352,551 55,990 ----------- ----------- Long-term debt, net of current portion and net of deferred financing fees 1,371,313 368,585 Time charters acquired, net 797,451 -- Financial instruments 13,481 -- ----------- ----------- Total Liabilities 2,534,796 424,575 ----------- ----------- Commitments and contingencies Minority interest in equity of consolidated joint ventures 14,282 -- STOCKHOLDERS' EQUITY: Preferred Stock -- -- Common Stock 435 200 Additional paid-in capital 878,396 193,897 Other comprehensive loss (66) (65) Retained earnings 358,537 205,978 Less: Treasury stock (189) (189) ----------- ----------- Total Stockholders' Equity 1,237,113 399,821 ----------- ----------- Total Liabilities and Stockholders' Equity 3,786,191 824,396 ----------- ----------- EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2008 (UNAUDITED) AND JUNE 30, 2007 (UNAUDITED) (In thousands of U.S. Dollars) June 30, June 30, 2008 2007 Unaudited Unaudited ----------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income for the period $ 165,239 $ 32,218 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 43,054 15,827 Time charter amortization (67,336) -- Unrealized interest rate swap gain (21,018) (263) Straight-line revenue recognition adjustment 2,354 -- Gain on sale of vessel -- (6,194) Stock-based compensation 2,712 520 Income from investment in affiliate (404) (463) Minority interest share in net loss of consolidated joint ventures (51) (2) Changes in operating assets and liabilities: Operating assets (244) 1,030 Operating liabilities 18,338 2,816 Payments for dry docking and special surveys (7,324) (4,064) ----------- ----------- Net cash from operating activities 135,320 41,425 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of Quintana, net of cash acquired (692,420) -- Advances for vessel acquisitions / newbuildings (8,820) -- Additions to vessel cost (341) -- Additions to office furniture and equipment (193) (552) Investment in affiliate -- (11,000) Proceeds from sale of vessel -- 15,740 ----------- ----------- Net cash used in investing activities (701,774) 4,188 ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from long-term debt 1,405,642 -- Repayment of long-term debt (817,845) (19,202) Increase in restricted cash (109,992) -- Dividends paid (12,680) (3,931) Payment of financing costs (14,959) -- Share capital issuance costs (120) -- Payment from a related party -- 2,024 ----------- ----------- Net cash used in financing activities 450,046 (21,109) ----------- ----------- Net (decrease) / increase in cash and cash equivalents (116,408) 24,504 Cash and cash equivalents at beginning of period 243,672 86,289 ----------- ----------- Cash and cash equivalents at end of the period $ 127,264 $ 110,793 =========== =========== SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid during the period for: Interest payments $ 11,152 $ 6,706 U.S. source income taxes 533 162 Non-cash financing activities: Class A common stock issued as part-consideration for acquisition of Quintana 682,333 -- Adjusted EBITDA Reconciliation (all amounts in thousands of U.S. Dollars) For 3 months ended For 6 months ended June 30, June 30, June 30, June 30, 2008 2007 2008 2007 Net Income $126,759 $ 19,953 $165,239 $ 32,218 -------- -------- -------- -------- Interest and finance costs, net (1) 17,718 1,984 19,673 4,381 Depreciation and amortization 31,420 7,825 40,909 15,630 Unrealized Swap Gain (22,775) (219) (21,018) (263) Amortization of t/c fair values (2) (67,336) - (67,336) - Stock-based compensation 2,589 262 2,721 520 Gain on sale of vessels - (6,194) - (6,194) Taxes 244 56 489 112 -------- -------- -------- -------- Adjusted EBITDA $ 88,619 $ 23,667 $140,677 $ 46,404 ======== ======== ======== ======== (1) Include swap interest paid or received (2) Analysis: Non-cash amortization of unfavourable time charter in revenue $(75,651) Non-cash amortization of favourable time charters in charter hire expenses $ 8,315 -------- (67,336) -------- Reconciliation of Net Income to Adjusted Net Income (all amounts in thousands of U.S. Dollars) For 3 months ended For 6 months ended June 30, June 30, June 30, June 30, 2008 2007 2008 2007 Net Income $ 126,759 $ 19,953 $ 165,239 $ 32,218 Unrealized Swap Gain (22,775) (219) (21,018) (263) Gain on sale - (6,194) - (6,194) --------- --------- --------- --------- Adjusted Net Income $ 103,984 $ 13,540 $ 144,221 $ 25,761 --------- --------- --------- --------- Reconciliation of Earnings Per Share (Diluted) to Adjusted Earnings Per Share (Diluted) (all amounts in U.S. Dollars) For 3 months ended For 6 months ended June 30, June 30, June 30, June 30, 2008 2007 2008 2007 Earnings per share (diluted) $ 3.14 $ 1.00 $ 5.50 $ 1.61 Unrealized Swap Gain (0.56) (0.01) (0.70) (0.01) Gain on sale - (0.31) - (0.31) --------- --------- --------- --------- Adjusted Earnings per share (diluted) $ 2.58 $ 0.68 $ 4.80 $ 1.29 --------- --------- --------- ---------Disclosure of Non-GAAP Financial Measures We consider adjusted EBITDA represents net income plus net interest expense, depreciation, amortization, and taxes plus deferred stock-based compensation, gains or losses on the sale of vessels, amortization of deferred time charter assets and liabilities and unrealized gains on swaps, which are significant non-cash items. 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 losses (gains) 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. After the acquisition of Quintana, Excel owns a fleet of 40 vessels and, together with 7 Panamax vessels under bareboat charters, operates 47 vessels (4 Capesize, 14 Kamsarmax, 21 Panamax, 2 Supramax and 6 Handymax vessels) with a total carrying capacity of approximately 3.7 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, the Company's planned acquisition of Quintana 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 satisfy the closing conditions of the acquisition, changes in the demand for dry bulk vessels, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. APPENDIX The following key indicators highlight the Company's financial and operating performance during the second quarter and first half of 2008 compared to the corresponding period in the prior year. In the table below, The Panamax fleet includes both Kamsarmax and Panamax vessels and the Handymax fleet includes both Supramax and Handymax vessels: (in U.S. Dollars per day, unless otherwise stated):
Vessel Employment (In U.S. Dollars per day, unless otherwise stated) HANDYSIZE CAPESIZE FLEET PANAMAX FLEET FLEET TOTAL FLEET -------------- -------------- -------------- -------------- 3m to 3m to 3m to 3m to 3m to 3m to 3m to 3m to June June June June June June June June 30, 30, 30, 30, 30, 30, 30, 30, 2008 2007 2008 2007 2008 2007 2008 2007 ====== ===== ====== ====== ====== ====== ====== ====== Total ownership days 304 - 2,810 910 728 585 3,842 1,495 Available operating under period charter 274 - 2,516 811 131 246 2,921 1,058 Available operating under spot/ short duration charter 30 - 249 14 552 280 831 294 Utilization 100.0% - 98.4% 90.7% 93.8% 90.0% 97.7% 90.4% Time charter equivalent per ship per day - period 47,207 - 25,938 25,531 35,018 22,758 28,342 24,884 Time charter equivalent per ship per day - spot 118,100 - 53,975 35,857 45,824 25,577 50,860 26,070 Time charter equivalent per ship per day - weighted average 54,150 - 28,467 25,706 43,753 24,256 33,329 25,142 Net daily revenue per ship per day 54,150 - 28,011 23,305 41,022 21,835 32,545 22,731 Vessel operating expenses per ship per day (4,485) - (4,857) (5,556) (5,588) (4,672) (4,966) (5,211) Net Operating Cash Flow per ship per day before g&a expenses 49,665 - 23,155 17,749 35,434 17,163 27,579 17,520 ====== ===== ====== ====== ====== ====== ====== ====== Vessel Employment (In U.S. Dollars per day, unless otherwise stated) HANDYSIZE CAPESIZE FLEET PANAMAX FLEET FLEET TOTAL FLEET -------------- -------------- -------------- -------------- 6 6 6 6 6 6 6 6 Months Months Months Months Months Months Months Months June June June June June June June June 30, 30, 30, 30, 30, 30, 30, 30, 2008 2007 2008 2007 2008 2007 2008 2007 ====== ====== ====== ====== ====== ====== ====== ====== Total ownership days 304 - 3,720 1,810 1,456 1,215 5,480 3,025 Available operating under period charter 274 - 3,186 1,697 424 411 3,884 2,109 Available operating under spot/ short duration charter 30 - 431 14 951 694 1,412 708 Utilization 100.0% - 97.2% 94.6% 94.4% 91.0% 96.6% 93.1% Time charter equivalent per ship per day - period 47,207 - 27,313 25,128 36,844 20,117 29,758 24,151 Time charter equivalent per ship per day - spot 118,100 - 62,561 35,857 45,687 22,328 52,370 22,597 Time charter equivalent per ship per day - weighted average 54,150 - 31,516 25,216 42,959 21,237 35,786 23,760 Net daily revenue per ship per day 54,150 - 30,646 23,843 40,564 19,562 34,585 22,123 Vessel operating expenses per ship per day (4,485) - (5,190) (5,643) (5,121) (4,830) (5,132) (5,317) Net Operating Cash Flow per ship per day before g&a expenses 49,665 - 25,456 18,199 35,443 14,732 29,453 16,806 ====== ====== ====== ====== ====== ====== ====== ======Glossary of Terms Average number of vessels - This is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of calendar days each vessel was a part of our fleet during the period divided by the number of calendar days in that period. Total ownership days - We define these as the total days we owned the vessels in our fleet for the relevant period including off hire days associated with major repairs, drydockings or special or intermediate surveys. Ownership days are an indicator of the size of the fleet over a period and affect both the amount of revenues and the amount of expenses that are recorded during a period. Operating days - These are the ownership days less the aggregate number of off-hire days associated with major repairs, drydocks or special or intermediate surveys and the aggregate amount of time spent positioning vessels and any unforeseen off-hire. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenue. Operating days under spot / short duration charter - This is defined as available days under spot charters and / or time charters of a duration of less than six months. Fleet utilization This is the percentage of time that our vessels were available for revenue generating days, and is determined by dividing available days by ownership days for the relevant period. Adjusted 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 and time charter fair value amortization, 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.
Adjusted Time Charter Equivalent Calculation (In thousands of U.S. Dollars) Second Quarter Second Quarter Ended June 30, Ended June 30, 2008 2007 Voyage revenues $ 205,265 $ 37,126 Voyage expenses (6,930) (3,135) Time charter fair value amortization (75,651) -- Straight-line revenue adjustment 2,354 -- -------------- -------------- Total revenue, net of voyage expenses and time charter amortization 125,038 33,991 Total available days 3,752 1,352 -------------- -------------- Time Charter Equivalent $ 33,329 $ 25,142 ============== ============== Six Months Six Months Ended June 30, Ended June 30, 2008 2007 Voyage revenues $ 274,789 $ 72,991 Voyage expenses (11,966) (6,059) Time charter fair value amortization (75,651) -- Straight-line revenue adjustment 2,354 -- -------------- -------------- Total revenue, net of voyage expenses and time charter amortization 189,526 66,932 Total available days 5,296 2,817 -------------- -------------- Time Charter Equivalent $ 35,786 $ 23,760 ============== ==============
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 ownership days for the relevant time period. Daily general and administrative expense - This is calculated by dividing general and administrative expense by total ownership days for the relevant time period.
Expected Amortization Schedule for Fair Valued Time Charters for Next Year (in USD Millions) Q3'08 Q4'08 Q1'09 Q2'09 Total ----- ----- ----- ----- ----- Amortization of unfavourable time charters (1) 84.6 81.5 75.8 78.5 320.4 Amortization of favourable time charters (2) (10.1) (10.1) (9.9) (10.0) (40.1) ===== ===== ===== ===== ===== (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 August 11, 2008: The following table represents our fleet as of August 11, 2008. This table takes into account the fleet from the acquisition of Quintana:
FV of TC Expiration Vessels Year Date (max at Name Type Dwt Built period) Merger * --------- --------- ----- -------------- -------- Capesize Lowlands Beilun Capesize 170,162 1999 June 2010 131.0 Iron Miner Capesize 177,000 2007 April 2012 160.5 Kirmar Capesize 165,500 2001 June 2011 139.0 Iron Beauty Capesize 165,500 2001 June 2010 139.0 --------- --------- ----- -------------- -------- Total Capesize 4 678,162 --------- --------- ----- -------------- -------- Kamsarmax Iron Manolis Kamsarmax 82,300 2007 December 2010 96.25 Iron Brooke Kamsarmax 82,300 2007 December 2010 96.25 Iron Lindrew Kamsarmax 82,300 2007 December 2010 96.25 Coal Hunter Kamsarmax 82,300 2006 December 2010 93.25 Pascha Kamsarmax 82,300 2006 December 2010 93.25 Coal Gypsy Kamsarmax 82,300 2006 December 2010 93.25 Iron Anne Kamsarmax 82,000 2006 December 2010 93.25 Iron Vassilis Kamsarmax 82,000 2006 December 2010 93.25 Iron Bill Kamsarmax 82,000 2006 December 2010 93.25 Santa Barbara Kamsarmax 82,266 2006 December 2010 93.25 Ore Hansa Kamsarmax 82,229 2006 December 2010 93.25 Iron Kalypso Kamsarmax 82,204 2006 December 2010 93.25 Iron Fuzeyya Kamsarmax 82,229 2006 December 2010 93.25 Iron Bradyn Kamsarmax 82,769 2005 December 2010 90.75 --------- --------- ----- -------------- -------- Total Kamsarmax 14 1,151,497 --------- --------- ----- -------------- -------- Panamax Grain Harvester Panamax 76,411 2004 December 2010 85.75 Grain Express Panamax 76,466 2004 December 2010 85.75 Iron Knight Panamax 76,429 2004 December 2010 85.75 Coal Pride Panamax 72,600 1999 June 2010 72.0 Iron Man (A) Panamax 72,861 1997 August 2010 - Coal Age (A) Panamax 72,861 1997 December 2008 - Fearless I (A) Panamax 73,427 1997 September 2008 - Barbara (A) Panamax 73,390 1997 September 2008 - Linda Leah (A) Panamax 73,390 1997 October 2009 - King Coal (A) Panamax 72,873 1997 August 2011 - Coal Glory (A) Panamax 73,670 1995 August 2008 - Isminaki Panamax 74,577 1998 July 2009 n/a Angela Star Panamax 73,798 1998 January 2009 n/a Elinakos Panamax 73,751 1997 October 2009 n/a Rodon Panamax 73,670 1993 November 2008 n/a Happy Day Panamax 71,694 1997 January 2009 n/a Birthday Panamax 71,504 1993 September 2008 n/a Renuar Panamax 70,128 1993 February 2009 n/a Powerful Panamax 70,083 1994 July 2009 n/a Fortezza Panamax 69,634 1993 August 2008 n/a First Endeavour Panamax 69,111 1994 October 2009 n/a --------- --------- ----- -------------- -------- Total Panamax 21 1,532,328 2,210.75 --------- --------- ----- -------------- -------- Supramax July M Supramax 55,567 2005 September 2008 n/a Mairouli Supramax 53,206 2005 August 2008 n/a --------- --------- ----- -------------- -------- Total Supramax 2 108,773 --------- --------- ----- -------------- -------- TC Expiration Year Date (maximum Handymax Type Dwt Built period) --------- --------- ----- -------------- -------- Emerald Handymax 45,588 1998 In dry dock n/a Marybelle Handymax 42,552 1987 September 2008 n/a Attractive Handymax 41,524 1985 September 2008 n/a Lady Handymax 41,090 1985 In dry dock n/a Princess I Handymax 38,858 1994 July 2009 n/a Swift Handymax 37,687 1984 September 2008 n/a --------- --------- ----- -------------- -------- Total Handymax 6 247,299 --------- --------- ----- -------------- -------- 8.7 Years (Average GRAND TOTAL 47 3,718,059 Age) --------- --------- ----- -------------- -------- Delivery Range Fleet To Be Delivered Type Dwt (B) --------------------- -------- --------- --------------- Sandra Capesize 180,000 December 2008 Christine © Capesize 180,000 May 2010 Hope (D) Capesize 181,000 November 2010 Lillie (D) Capesize 181,000 December 2010 Fritz (D) Capesize 180,000 May 2010 Benthe (D) Capesize 180,000 June 2010 Gayle Frances (D) Capesize 180,000 July 2010 Iron Lena (D) Capesize 180,000 August 2010 -------- --------- --------------- Total Fleet To Be Delivered 8 1,442,000 -------- --------- ---------------* These amounts reflect the fair values assigned to ex-Quintana vessels at the merger date. Excel vessels remain at book value in the financial statements. (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. There can be no assurances that the vessels will be delivered timely or at all. © Excel holds a 42.8% interest in the joint venture that will own the vessel. (D) Excel holds a 50% interest in the joint ventures that will own these vessels. For further details on the fleet and their employment please refer to our website at www.excelmaritime.com
Contact Information: Contacts: Investor Relations / Financial Media: Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue - Suite 1536 New York, NY 10160, USA Tel: (212) 661-7566 Fax: (212) 661-7526 E-Mail: excelmaritime@capitallink.com www.capitallink.com Company: 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: info@excelmaritime.com www.excelmaritime.com