-- Revenue from operations for the quarter amounted to $173.9 million as
compared to $205.5 million in the second quarter of 2008.
-- Net income for the quarter was $78.0 million or $1.05 per weighted
average diluted share compared to $123.6 million or $3.06 per weighted
average diluted share in the second quarter of 2008. The results for the
second quarters of 2009 and 2008 include non-cash items of $14.3 million
and $22.8 million, respectively relating to the unrealized gain from the
valuation of interest rate swaps. Net income, excluding the above items,
for the second quarter of 2009 would amount to $63.7 million or $0.86 per
weighted average diluted share compared to respective income for the second
quarter of 2008 of $100.8 million or $2.50 per weighted average diluted
share.
-- Adjusted EBITDA for the second quarter of 2009 was $57.3 million
compared to $91.0 million for the second quarter of 2008. A reconciliation
of adjusted EBITDA to Net Income is included in a subsequent section of
this release.
-- An average of 47 vessels were operated during the second quarter of
2009 earning a blended average time charter equivalent rate of $22,148 per
day compared to $33,325 per day for the second quarter of 2008 earned by an
average of 42.2 vessels.
Six Months 2009 Highlights:
-- Revenue from operations for the six-month period ended June 30, 2009
increased to $396.0 million from $275.3 million in the six-month period
ended June 30, 2008.
-- Net income for the six-month period ended June 30, 2009 was $196.0
million or $3.27 per weighted average diluted share compared to $158.6
million or $5.28 per weighted average diluted share in the respective
period of 2008. These results include non-cash items of $21.0 million in
both periods relating to the unrealized gain from the valuation of interest
rate swaps. Net income for 2009 includes also a non-cash item of $0.1
million relating to the resulting gain from the sale of vessel Swift. Net
income, excluding the above items, would amount to $174.9 million or $2.92
per weighted average diluted share for the six month period ended June 30,
2009 compared to $137.6 million or $4.58 per weighted average diluted share
for the respective period in 2008.
-- Adjusted EBITDA for the six month period ended June 30, 2009 was
$110.5 million compared to $143.0 million for the respective period of
2008. A reconciliation of adjusted EBITDA to Net Income is included in a
subsequent section of this release.
Year to Date Corporate Developments
During the six-month period ended June 30, 2009, the following corporate
developments took place, which are discussed in more detail in our earnings
release for the first quarter of 2009 released on May 22, 2009:
-- Nordea and Credit Suisse loan amendments and equity infusion;
-- Dividend suspension; and
-- Receipt of $5.2 million, representing Oceanaut's liquidation proceeds.
Fleet Developments:
Sale of vessel
Based on a Memorandum of Agreement dated February 20, 2009, the M/V Swift,
a Handymax vessel of 37,687 dwt built in 1984 was sold for net proceeds of
approximately $3.8 million. As of December 31, 2008, the vessel's value was
impaired and written down to her fair value, which approximated her sale
proceeds and thus, the 2009 results were not materially affected. The
vessel was delivered to her new owners on March 16, 2009. Following the
sale of the vessel, the Company repaid an amount of $4.6 million of its
loan with Nordea Bank.
Vessels new fixtures
On April 16, 2009 the M/V Sandra, a Capesize vessel of 180,274 dwt built in
2008, terminated her existing time charter. The Company received
approximately $2.0 million as compensation for the early termination and
entered into a new charter at a daily rate of $32,000 expiring in September
2010. A second charter on the vessel has been fixed commencing upon
completion of her current charter and through February 2016 at a daily base
rate of $25,000, with 50% profit sharing based on the monthly AV4 BCI
charter rate as published by the Baltic Exchange.
On June 8, 2009 the M/V Birthday, a Panamax vessel of 71,504 dwt built in
1993, began a new time charter for a period of 12-14 months at a daily rate
of $16,500.
On June 10, 2009 the M/V Barbara, a Panamax vessel of 73,307 dwt built in
1997, began a new time charter for a period of 12-14 months at a daily rate
of $23,000.
On June 22, 2009 the M/V Powerful, a Panamax vessel of 70,083 dwt built in
1994, began a new time charter for a period of 6-8 months at a daily rate
of $20,500.
Time Charter Coverage
As of today, we have secured under time charter employment 66% of our
operating days for the second half of 2009 and 53% for 2010.
Management Commentary:
Lefteris Papatrifon, Chief Financial Officer of Excel, stated, "We are very
pleased with our financial and operating performance for the second quarter
of 2009, given the prevailing market conditions. As we had anticipated
earlier in the year, global economic conditions, which directly affected
our sector, have started improving since the first quarter of this year.
Our strategy of enhancing the stability of our cash flows by gradually
fixing our vessels under charters at the proper time has continued to
benefit us. We have not only maintained but we even improved our operating
revenues and profitability, as depicted by the second quarter 2009 EBITDA
of $57.3 million as compared to the first quarter 2009 EBITDA of $53.3
million. The recent further improvement of the economic sentiment in the US
and China, as evidenced by various economic indicators and future market
expectations, allows us to be cautiously optimistic for the future. We
will continue implementing our strategy, which we expect will allow us to
continue managing current market volatility while at the same time being
able to take advantage of any opportunities presented to us."
Second Quarter 2009 Results:
The Company reported net income for the quarter of $78.0 million or $1.05
per weighted average diluted share as compared to net income of $123.6
million or $3.06 per weighted average diluted share for the second quarter
of 2008.
The results for the second quarters of 2009 and 2008 include non-cash items
of $14.3 million and $22.8 million, respectively relating to the unrealized
gain from the valuation of interest rate swaps. Net income, excluding the
above items, for the second quarter of 2009 would amount to $63.7 million
or $0.86 per weighted average diluted share compared to respective income
for the second quarter of 2008 of $100.8 million or $2.50 per weighted
average diluted share.
Included in the above adjusted net income are also the amortization of
favorable and unfavorable time charters that were fair valued upon
acquiring Quintana Maritime Limited ("Quintana") on April 15, 2008
amounting to a net income of $65.3 million ($0.88 per weighted average
diluted share) and $65.0 million ($1.61 per weighted average diluted share)
for the second quarters of 2009 and 2008, respectively and the amortization
of stock based compensation expense of $3.0 million and $2.6 million,
respectively.
In addition, effective January 1, 2009, we changed the method of accounting
for dry-docking and special survey costs from the deferral method to the
expense as incurred method, as well as, adopted FASB Staff Position APB
14-1 "Accounting for Convertible Debt Instruments That May Be Settled in
Cash upon Conversion" that changed the method of accounting for our
Convertible Notes. (Please refer to a subsequent section of this Press
Release for a further discussion on these accounting changes). Such changes
were effected retrospectively to all periods presented and their effect in
the three months to June 30, 2009 was a decrease in net income of
approximately $1.3 million or $0.02 per weighted average diluted share in
relation to the change in dry-dock and special survey policy and $1.4
million or $0.02 per weighted average diluted share in relation to the
change in the accounting for the convertible notes.
Revenues for the second quarter of 2009 amounted to $173.9 million as
compared to $205.5 million for the same period in 2008, a decrease of
approximately 15.4%.
Included in revenues for the second quarters of 2009 and 2008 are $75.3
million and $73.3 million, respectively of non-cash revenues relating to
the amortization of unfavorable time charters that were fair valued upon
acquiring Quintana.
An average of 47 vessels were operated during the second quarter of 2009
earning a blended average time charter equivalent rate of $22,148 per day
compared to $33,325 per day for the second quarter of 2008 earned by an
average of 42.2 vessels. Please refer to a subsequent section of this
Press Release for a calculation of the TCE.
Adjusted EBITDA for the second quarter of 2009 was $57.3 million compared
to $91.0 million for the second quarter of 2008, a decrease of
approximately 37.0%. Please refer to a subsequent section of this Press
Release for a reconciliation of adjusted EBITDA to Net Income.
Six Months to June 30, 2009:
The Company reported net income for the period of $196.0 million or $3.27
per weighted average diluted share as compared to net income of $158.6
million or $5.28 per weighted average diluted share for the respective
period of 2008.
The results for the six-month periods ended June 30, 2009 and 2008 include
a non-cash item of $21.0 million in both periods relating to the unrealized
gain from the valuation of interest rate swaps. Net income for 2009
includes also a non-cash item of $0.1 million relating to the resulting
gain from the sale of vessel Swift. Net income, excluding the above items,
would amount to $174.9 million or $2.92 per weighted average diluted share
for the six month period ended June 30, 2009 compared to $137.6 million or
$4.58 per weighted average diluted share for the respective period in 2008.
Included in the above adjusted net income are also the amortization of
favorable and unfavorable time charters discussed above and amounting to a
net income of $184.6 million ($3.1 per weighted average diluted share) out
of which $51.5 million ($0.86 per weighted average diluted share) relate to
the accelerate amortization of the time charter value of M/V Sandra and M/V
Coal Pride assumed upon Quintana acquisition due to their termination and
$65.0 million ($2.2 per weighted average diluted share) for the six-month
periods ended June 30, 2009 and 2008, respectively and the amortization of
stock based compensation expense of $5.4 million and $2.7 million,
respectively.
The effect of the accounting changes discussed above in the
six-month period ended June 30, 2009 was a decrease in net income of
approximately $3.3 million or $0.06 per weighted average diluted share in
relation to the change in dry-dock and special survey policy and $2.8
million or $0.05 per weighted average diluted share in relation to the
change in the accounting for the convertible notes.
Revenues for the period amounted to $396.0 million as compared to $275.3
million for the same period in 2008, an increase of approximately 43.8%.
Included in revenues for the six-month periods ended June 30, 2009 and 2008
are $204.4 million and $73.3 million, respectively of non-cash revenues
relating to the amortization of unfavorable time charters that were fair
valued upon acquiring Quintana.
An average of 47.4 vessels were operated during the six-month period ended
June 30, 2009, earning a blended average time charter equivalent (TCE) rate
of $21,559 per day compared to $35,786 per day for the six-months period
ended June 30, 2008 earned by an average of 30.1 vessels. Please refer to
a subsequent section of this Press Release for a calculation of the TCE.
Adjusted EBITDA for the period was $110.5 million compared to $143.0
million for the respective period of 2008, a decrease of approximately
22.7%. Please refer to a subsequent section of this Press Release for a
reconciliation of adjusted EBITDA to Net Income.
Conference Call Details:
Today August 5, 2009 at 9:00 A.M. EDT, the company's management will host a
conference call to discuss the results.
Participants should dial into the call 10 minutes before the scheduled time
using the following numbers: 1 866 819 7111 (US Toll Free Dial In), 0800
953 0329 (UK Toll Free Dial In) or +44 (0)1452 542 301 (Standard
International Dial In). Please quote "Excel Maritime" to the operator.
A telephonic replay of the conference call will be available until August
12, 2009 by dialing 1 866 247 4222 (US Toll Free Dial In), 0800 953 1533
(UK Toll Free Dial In) or +44 (0)1452 550 000 (Standard International Dial
In). Access Code: 1838801#
Slides and Audio Webcast:
There will also be a live, and then archived, webcast of the conference
call, available through Excel Maritime Carriers' website
(www.excelmaritime.com). Participants for the live webcast should register
on the website approximately 10 minutes prior to the start of the webcast.
- Financial and Other Financial Data Follow -
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
FOR THE THREE- MONTH PERIODS ENDED JUNE 30, 2008 (as adjusted) AND 2009
(In thousands of U.S. Dollars, except for share and per share data)
Three-Month period
ended June 30,
2008
(as adjusted) 2009
---------- ----------
REVENUES:
Voyage revenues 131,967 98,439
Time Charter fair value amortization 73,298 75,309
Revenue from managing related party vessels 232 112
---------- ----------
Revenue from operations 205,497 173,860
---------- ----------
EXPENSES:
Voyage expenses 5,976 5,051
Charter hire expense 6,836 8,185
Charter hire amortization 8,315 9,970
Commissions to a related party 954 567
Vessel operating expenses 19,080 21,065
Depreciation expense 29,649 30,733
Dry-docking and special survey cost 3,695 3,826
General and administrative expenses 11,065 9,574
---------- ----------
85,570 88,971
---------- ----------
Income from operations 119,927 84,889
---------- ----------
OTHER INCOME (EXPENSES):
Interest and finance costs (17,746) (14,651)
Interest income 1,986 166
Interest rate swap gain 19,534 7,627
Foreign exchange loss (70) (125)
Other, net (61) 263
---------- ----------
Total other income (expenses), net 3,643 (6,720)
---------- ----------
Net income before taxes and income from investment
in affiliate 123,570 78,169
---------- ----------
US Source Income taxes (244) (177)
---------- ----------
Net income before income from investment in
affiliate 123,326 77,992
---------- ----------
Income from Investment in affiliate 175 -
---------- ----------
Net income 123,501 77,992
---------- ----------
Less: Loss assumed by the non controlling interests 51 46
---------- ----------
Net income attributable to Excel Maritime Carriers
Ltd. 123,552 78,038
========== ==========
Earnings per common share, basic $ 3.10 $ 1.10
========== ==========
Weighted average number of shares, basic 39,836,681 70,986,320
========== ==========
Earnings per common share, diluted $ 3.06 $ 1.05
========== ==========
Weighted average number of shares, diluted 40,376,857 74,199,723
========== ==========
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
FOR THE SIX- MONTH PERIODS ENDED JUNE 30, 2008 (as adjusted) AND 2009
(In thousands of U.S. Dollars, except for share and per share data)
Six-month period
ended June 30,
2008
(as adjusted) 2009
---------- ----------
REVENUES:
Voyage revenues 201,491 191,245
Time Charter fair value amortization 73,298 204,446
Revenue from managing related party vessels 465 277
---------- ----------
Revenue from operations 275,254 395,968
---------- ----------
EXPENSES:
Voyage expenses 10,144 9,877
Charter hire expense 6,836 16,281
Charter hire amortization 8,315 19,816
Commissions to a related party 1,822 1,025
Vessel operating expenses 28,127 42,210
Depreciation expense 37,641 61,266
Dry-docking and special survey cost 7,324 7,932
General and administrative expenses 14,832 16,865
---------- ----------
115,041 175,272
---------- ----------
Gain on sale of vessel - 61
Income from operations 160,213 220,757
---------- ----------
OTHER INCOME (EXPENSES):
Interest and finance costs (23,476) (32,674)
Interest income 4,625 242
Interest rate swap gain 17,631 8,185
Foreign exchange loss (208) (37)
Other, net (133) (177)
---------- ----------
Total other income (expenses), net (1,561) (24,461)
---------- ----------
Net income before taxes and income from investment
in affiliate 158,652 196,296
---------- ----------
US Source Income taxes (489) (353)
---------- ----------
Net income before income from investment in
affiliate 158,163 195,943
---------- ----------
Income from Investment in affiliate 404 -
---------- ----------
Net income 158,567 195,943
---------- ----------
Less: Loss assumed by the non controlling interests 51 87
---------- ----------
Net income attributable to Excel Maritime Carriers
Ltd. 158,618 196,030
========== ==========
Earnings per common share, basic $ 5.31 $ 3.35
========== ==========
Weighted average number of shares, basic 29,895,936 58,480,526
========== ==========
Earnings per common share, diluted $ 5.28 $ 3.27
========== ==========
Weighted average number of shares, diluted 30,048,407 59,935,790
========== ==========
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2008 (as adjusted) AND JUNE 30, 2009 (unaudited)
(In thousands of U.S. Dollars)
December
31, 2008 June 30,
ASSETS (as adjusted) 2009
---------- ----------
CURRENT ASSETS:
Cash and cash equivalents 109,792 86,511
Restricted cash 53 44
Accounts receivable 10,247 4,130
Other current assets 6,958 8,298
---------- ----------
Total current assets 127,050 98,983
---------- ----------
FIXED ASSETS:
Vessels, net 2,786,717 2,722,095
Advances for vessels under construction 106,898 115,305
Office furniture and equipment, net 1,722 1,590
---------- ----------
Total fixed assets, net 2,895,337 2,838,990
---------- ----------
OTHER NON CURRENT ASSETS:
Time charters acquired, net 264,263 244,447
Restricted cash 24,947 27,311
Investment in affiliate 5,212 -
---------- ----------
Total assets 3,316,809 3,209,731
========== ==========
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt, net of
deferred financing fees 220,410 121,107
Accounts payable 6,440 7,540
Other current liabilities 47,934 49,613
Current portion of financial instruments 40,119 29,163
---------- ----------
Total current liabilities 314,903 207,423
---------- ----------
Long-term debt, net of current portion and net of
deferred financing fees 1,256,707 1,222,394
Time charters acquired, net 650,781 446,335
Financial instruments 41,020 30,974
---------- ----------
Total liabilities 2,263,411 1,907,126
---------- ----------
Commitments and contingencies - -
---------- ----------
STOCKHOLDERS’ EQUITY:
Preferred stock - -
Common stock 461 718
Additional paid-in capital 944,207 994,354
Other Comprehensive Loss (74) (74)
Retained earnings 94,063 290,093
Less: Treasury stock (189) (189)
---------- ----------
Excel Maritime Carriers Ltd. Stockholders’ equity 1,038,468 1,284,902
---------- ----------
Non-controlling interests 14,930 17,703
---------- ----------
Total Stockholders’ Equity 1,053,398 1,302,605
---------- ----------
Total liabilities and stockholders’ equity 3,316,809 3,209,731
========== ==========
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS
FOR THE SIX- MONTH PERIODS ENDED JUNE 30, 2008 (as adjusted) AND 2009
(In thousands of U.S. Dollars)
Six-month period
ended June 30,
2008
(as adjusted) 2009
---------- ----------
Cash Flows from Operating Activities:
Net income 158,618 196,030
Adjustments to reconcile net income to net cash
provided by operating activities (41,393) (134,148)
Changes in operating assets and liabilities:
Operating assets (242) 4,777
Operating liabilities 18,337 2,779
---------- ----------
Net Cash provided by Operating Activities 135,320 69,438
---------- ----------
Cash Flows from Investing Activities:
Acquisition of Quintana, net of cash acquired (692,420) -
Advances for vessels under construction (8,820) (8,407)
Additions to vessel cost (341) (114)
Additions to office furniture and equipment (193) (72)
Proceeds received from Oceanaut’s liquidation - 5,212
Proceeds from sale of vessel - 3,735
---------- ----------
Net cash provided by (used in) Investing Activities (701,774) 262
---------- ----------
Cash Flows from Financing Activities:
Increase in restricted cash (109,992) (2,355)
Proceeds from long-term debt 1,405,642 5,067
Repayment of long-term debt (817,845) (141,707)
Payment of financing costs (14,959) (1,938)
Share capital issuance costs (120) -
Issuance of common stock - 45,000
Non controlling interests - 2,860
Dividends paid (12,680) -
---------- ----------
Net cash provided by (used in) Financing Activities 450,046 (93,073)
---------- ----------
Net decrease in cash and cash equivalents (116,408) (23,281)
Cash and cash equivalents at beginning of period 243,672 109,792
---------- ----------
Cash and cash equivalents at end of the period 127,264 86,511
========== ==========
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Interest payments 11,152 33,761
U.S. Source income taxes 533 448
Non-cash financing activities
Class A common stock issued as part of the
consideration paid for the acquisition of
Quintana 682,333 -
Adjusted EBITDA Reconciliation
(all amounts in thousands of U.S. Dollars)
Three-month period Six-month period
ended June 30, ended June 30,
2008 2009 2008 2009
Net income 123,552 78,038 158,618 196,030
Interest and finance costs, net (1) 19,001 21,116 22,238 45,248
Depreciation 29,649 30,733 37,641 61,266
Dry-dock and special survey cost 3,695 3,826 7,324 7,932
Unrealized swap gain (22,775) (14,258) (21,018) (21,001)
Amortization of T/C fair values (2) (64,983) (65,339) (64,983) (184,630)
Stock based compensation 2,589 2,993 2,712 5,404
Gain on sale of vessel - - - (61)
Taxes 244 177 489 353
-------- -------- -------- --------
Adjusted EBITDA 90,972 57,286 143,021 110,541
======== ======== ======== ========
(1) Includes swap interest paid and received
(2) Analysis:
Three-month period Six-month period
ended June 30, ended June 30,
2008 2009 2008 2009
Non-cash amortization of
unfavorable time charters
in revenue (73,298) (75,309) (73,298) (152,972)
Non-cash accelerated
amortization of M/V Sandra
and Coal Pride time
charter fair value due to
charter termination - - - (51,474)
Non-cash amortization of
favorable time charters in
charter hire expense 8,315 9,970 8,315 19,816
---------- ---------- ---------- ----------
(64,983) (65,339) (64,983) (184,630)
========== ========== ========== ==========
Reconciliation of Net Income to Adjusted Net Income
(all amounts in thousands of U.S. Dollars)
Three-month period Six-month period
ended June 30, ended June 30,
2008 2009 2008 2009
Net income 123,552 78,038 158,618 196,030
Unrealized swap gain (22,775) (14,258) (21,018) (21,001)
Gain on sale of vessel - - - (61)
--------- --------- --------- ---------
Adjusted Net income 100,777 63,780 137,600 174,968
========= ========= ========= =========
Reconciliation of Earnings per Share (Diluted) to Adjusted Earnings per
Share (Diluted)
(all amounts in U.S. Dollars)
Three-month period Six-month period
ended June 30, ended June 30,
2008 2009 2008 2009
Earnings per Share (Diluted) $ 3.06 $ 1.05 $ 5.28 $ 3.27
Unrealized swap gain (0.56) (0.19) (0.70) (0.35)
Gain on sale of vessel - - - -
-------- -------- -------- --------
Adjusted Earnings per Share
(Diluted) $ 2.50 $ 0.86 $ 4.58 $ 2.92
======== ======== ======== ========
Accounting changes:
Change in Dry-docking and Special survey accounting policy
Effective January 1, 2009, we changed the method of accounting for
dry-docking and special survey costs from the deferral method, under which
costs associated with the dry-docking and special survey of a vessel are
deferred and charged to expense over the period to a vessel's next
scheduled dry-docking, to the direct expense method, under which the
dry-docking and special survey costs will be expensed as incurred. We
consider this as a preferable method because (i) it eliminates the
subjectivity in the financial statements that occurs when determining which
costs are eligible for deferral; such elimination of subjectivity enhances
transparency in the balance sheet; (ii) is consistent with recent
accounting policy and informal trends in the shipping industry and (iii) is
consistent with the asset and liability framework in the concept
statements.
Adoption of new accounting pronouncements
Effective January 1, 2009, we adopted FASB Staff Position, Accounting
Principles Board 14-1, Accounting for Convertible Debt Instruments That May
Be Settled in Cash upon Conversion (Including Partial Cash Settlement)
("FSP APB 14-1"). FSP APB 14-1 requires issuers of convertible debt to
account separately for the liability and equity components in a manner that
reflects the issuers' non-convertible debt borrowing rate. The resulting
debt discount is amortized over the period the debt is expected to be
outstanding as additional non-cash interest expense. FSP APB 14-1 requires
retrospective restatement of all periods presented with the cumulative
effect of the change in accounting principles on prior periods recognized
in retained earnings as of the beginning of the first period presented.
Effective January 1, 2009, we adopted Statement of Financial Accounting
Standard ("SFAS") No. 160, Accounting and Reporting of Non-controlling
Interest in Consolidated Financial Statements, an Amendment of ARB No. 51.
SFAS No. 160 amends Accounting Research Bulletin ("ARB") No. 51, to
establish accounting and reporting standards for the non-controlling
interest in a subsidiary and for the deconsolidation of a subsidiary. This
standard defines a non-controlling interest, previously called a minority
interest, as the portion of equity in a subsidiary not attributable,
directly or indirectly, to us.
With the exception of SFAS 160 which requires retrospective application
only in the presentation and disclosure requirements, the other two
accounting changes require retrospective application for all periods
presented and were effected in the accompanying unaudited interim
consolidated financial statements in accordance with FASB Statement No.
154 "Accounting Changes and Error Corrections", which requires that an
accounting change should be retrospectively applied to all prior periods
presented, unless it is impractical to determine the prior period impacts.
Accordingly, the previously reported 2008 financial information has been
recast to account for these changes.
Disclosure of Non-GAAP Financial Measures
Adjusted EBITDA represents net income plus net interest expense,
depreciation, amortization, and taxes eliminating the effect of deferred
stock-based compensation, gains or losses on the sale of vessels,
amortization of deferred time charter assets and liabilities and unrealized
gains or losses on swaps, which are significant non-cash items. Following
the Company's change in the method of accounting for dry docking and
special survey costs, such costs are also included in the adjustments to
EBITDA for comparability purposes. The Company's management uses adjusted
EBITDA as a performance measure. The Company believes that adjusted EBITDA
is useful to investors, because the shipping industry is capital intensive
and may involve significant financing costs. Adjusted EBITDA is not a
measure recognized by GAAP and should not be considered as an alternative
to net income, operating income or any other indicator of a Company's
operating performance required by GAAP. The Company's definition of
adjusted EBITDA may not be the same as that used by other companies in the
shipping or other industries.
Adjusted Net Income represents net income plus unrealized gains or losses
from our swap transactions and any gains or losses on sale of vessels, both
of which are significant non-cash items. Adjusted Earnings per Share
(diluted) represents Adjusted Net Income divided by weighted average shares
outstanding (diluted).
These measures are "non-GAAP financial measures" and should not be
considered substitutes for net income or earnings per share (diluted),
respectively, as reported under GAAP. The Company has included an adjusted
net income and adjusted earnings per share (diluted) calculation in this
period in order to facilitate comparability between the Company's
performance in the reported periods and its performance in prior periods.
About Excel Maritime Carriers Ltd
Excel is an owner and operator of dry bulk carriers and a provider of
worldwide seaborne transportation services for dry bulk cargoes, such as
iron ore, coal and grains, as well as bauxite, fertilizers and steel
products. Excel owns a fleet of 40 vessels and, together with 7 Panamax
vessels under bareboat charters, operates 47 vessels (5 Capesize, 14
Kamsarmax, 21 Panamax, 2 Supramax and 5 Handymax vessels) with a total
carrying capacity of approximately 3.9 million DWT. Excel Class A common
shares have been listed since September 15, 2005 on the New York Stock
Exchange (NYSE) under the symbol EXM and, prior to that date, were listed
on the American Stock Exchange (AMEX) since 1998. For more information
about the Company, please go to our corporate website
www.excelmaritime.com.
Forward-Looking Statement
This press release contains forward-looking statements (as defined in
Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended) concerning future events
and the Company's growth strategy and measures to implement such strategy;
including expected vessel acquisitions and entering into further time
charters. Words such as "expects," "intends," "plans," "believes,"
"anticipates," "hopes," "estimates," and variations of such words and
similar expressions are intended to identify forward-looking statements.
Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given that
such expectations will prove to have been correct.
These statements involve known and unknown risks and are based upon a
number of assumptions and estimates which are inherently subject to
significant uncertainties and contingencies, many of which are beyond the
control of the Company. Actual results may differ materially from those
expressed or implied by such forward-looking statements. Factors that could
cause actual results to differ materially include, but are not limited to
the ability to changes in the demand for dry bulk vessels, competitive
factors in the market in which the Company operates; risks associated with
operations outside the United States; and other factors listed from time to
time in the Company's filings with the Securities and Exchange Commission.
The Company expressly disclaims any obligations or undertaking to release
publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in the Company's expectations with
respect thereto or any change in events, conditions or circumstances on
which any statement is based.
APPENDIX
The following key indicators highlight the Company's financial and
operating performance for the three and six months ended June 30, 2009
compared to the corresponding periods in the prior year. In the table
below, the Panamax fleet includes both Kamsarmax and Panamax vessels and
the Handymax fleet includes both Supramax and Handymax vessels:
Vessel Employment
(In U.S. Dollars per day, unless otherwise stated)
HANDYSIZE
CAPESIZE FLEET PANAMAX FLEET FLEET TOTAL FLEET
Three-month period ended June 30,
2008 2009 2008 2009 2008 2009 2008 2009
------ ------ ------ ------ ------ ------ ------ ------
Total
calendar
days 304 455 2,810 3,185 728 637 3,842 4,277
Available
days under
period
charter 274 434 2,516 2,275 131 136 2,921 2,845
Available
days under
spot/short
duration
charter 30 - 249 845 552 501 831 1,346
Utilization 100.0% 95.4% 98.4% 98.0% 93.8% 100.0% 97.7% 97.8%
Time
charter
equivalent
per ship
per day-
period 47,207 43,041 25,938 23,918 35,018 16,376 28,342 26,472
Time
charter
equivalent
per ship
per day-
spot 118,100 - 53,975 14,097 45,824 11,200 50,860 13,018
Time
charter
equivalent
per ship
per day-
weighted
average 54,150 43,041 28,467 21,259 43,753 12,305 33,325 22,148
Net daily
revenue
per ship
per day 54,150 41,009 28,011 20,823 41,022 12,305 32,545 21,702
Vessel
operating
expenses
per ship
per day (4,485) (5,693) (4,857) (4,812) (5,588) (4,943) (4,966) (4,925)
Net
Operating
cash flows
per ship
per day
before G&A
expenses 49,665 35,316 23,154 16,011 35,434 7,362 27,579 16,777
------ ------ ------ ------ ------ ------ ------ ------
Vessel Employment
(In U.S. Dollars per day, unless otherwise stated)
HANDYSIZE
CAPESIZE FLEET PANAMAX FLEET FLEET TOTAL FLEET
Six-month period ended June 30,
2008 2009 2008 2009 2008 2009 2008 2009
------ ------ ------ ------ ------ ------ ------ ------
Total
calendar
days 304 905 3,720 6,335 1,456 1,341 5,480 8,581
Available
days under
period
charter 274 884 3,186 4,626 424 276 3,884 5,786
Available
days under
spot/short
duration
charter 30 - 431 1,610 951 969 1,412 2,579
Utilization 100.0% 97.7% 97.2% 98.4% 94.4% 92.8% 96.6% 97.5%
Time
charter
equivalent
per ship
per
day-period 47,207 42,745 27,313 24,084 36,844 16,564 29,758 26,574
Time
charter
equivalent
per ship
per
day-spot 118,100 - 62,561 11,432 45,687 8,424 52,370 10,302
Time
charter
equivalent
per ship
per day-
weighted
average 54,150 42,745 31,516 20,817 42,959 10,230 35,786 21,559
Net daily
revenue
per ship
per day 54,150 41,731 30,646 20,495 40,564 9,496 34,585 21,015
Vessel
operating
expenses
per ship
per day (4,485) (5,426) (5,190) (4,811) (5,121) (5,086) (5,132) (4,919)
Net
Operating
cash flows
per ship
per day
before G&A
expenses 49,665 36,305 25,456 15,684 35,443 4,410 29,453 16,096
------ ------ ------ ------ ------ ------ ------ ------
Glossary of Terms
Average number of vessels: This is the number of vessels that constituted
our fleet for the relevant period, as measured by the sum of the number of
calendar days each vessel was a part of our fleet during the period divided
by the number of calendar days in that period.
Total calendar days: We define these as the total days we owned the vessels
in our fleet for the relevant period including off hire days associated
with major repairs, dry dockings or special or intermediate surveys.
Calendar days are an indicator of the size of the fleet over a period and
affect both the amount of revenues and the amount of expenses that are
recorded during a period.
Available days: These are the calendar days less the aggregate number of
off-hire days associated with major repairs, dry docks or special or
intermediate surveys and the aggregate amount of time spent positioning
vessels and any unforeseen off-hire. The shipping industry uses available
days to measure the number of days in a period during which vessels should
be capable of generating revenue.
Available days under spot / short duration charter: This is defined as
available days under spot charters and / or time charters of duration of
less than six months.
Fleet utilization: This is the percentage of time that our vessels were
available for revenue generating days, and is determined by dividing
available days by calendar days for the relevant period.
Time charter equivalent per ship per day ("TCE"): This is a measure of the
average daily revenue performance of a vessel on a per voyage basis. Our
method of calculating TCE is consistent with industry standards and is
determined by dividing revenue generated from voyage charters net of voyage
expenses by available days for the relevant time period. Voyage expenses
primarily consist of port, canal and fuel costs that are unique to a
particular voyage, which would otherwise be paid by the charterer under a
time charter contract, as well as commissions. Time charter equivalent
revenue and TCE rate are not measures of financial performance under U.S.
GAAP and may not be comparable to similarly titled measures of other
companies. However, TCE is a standard shipping industry performance measure
used primarily to compare period-to-period changes in a shipping company's
performance despite changes in the mix of charter types (i.e., spot voyage
charters, time charters and bareboat charters) under which the vessels may
be employed between the periods.
Time Charter Equivalent Calculation
(all amounts in thousands of U.S. Dollars, except for Daily Time Charter
Equivalent and available days)
For the For the
three-month period six-month period
ended June 30, ended June 30,
------------------ ------------------
2008 2009 2008 2009
-------- -------- -------- --------
Voyage revenues 131,967 98,439 201,491 191,245
Voyage expenses (6,930) (5,618) (11,966) (10,902)
-------- -------- -------- --------
Time Charter Equivalent 125,037 92,821 189,525 180,343
======== ======== ======== ========
Total available days 3,752 4,191 5,296 8,365
Daily Time charter equivalent $ 33,325 $ 22,148 $ 35,786 $ 21,559
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) 3Q’09 4Q’09 1Q’10 2Q’10 Total Amortization of unfavorable time charters (1) 76.1 72.7 70.8 69.6 289.2 Amortization of favorable time charters (2) 10.1 10.1 9.9 10.1 40.2(1) Adjustment to Revenue from operations i.e. increases revenues (2) Adjustment to Charter hire expenses i.e. increases charter hire expense
Year Charter Average
Vessel Name Dwt Built Type Expiration Date
Iron Miner 177,931 2007 Period February 2012
Kirmar 164,218 2001 Period April 2013
Iron Beauty 164,218 2001 Period May 2010
Lowlands Beilun 170,162 1999 Period May 2010
Sandra 180,274 2008 Period September 2010 (1)
Total Capesize 856,803
Iron Manolis 82,269 2007 Period December 2010
Iron Brooke 82,594 2007 Period December 2010
Iron Lindrew 82,598 2007 Period December 2010
Coal Hunter 82,298 2006 Period December 2010
Pascha 82,574 2006 Period December 2010
Coal Gypsy 82,221 2006 Period December 2010
Iron Anne 82,220 2006 Period December 2010
Iron Vassilis 82,257 2006 Period December 2010
Iron Bill 82,187 2006 Period December 2010
Santa Barbara 82,266 2006 Period December 2010
Ore Hansa 82,209 2006 Period December 2010
Iron Kalypso 82,224 2006 Period December 2010
Iron Fuzeyya 82,209 2006 Period December 2010
Iron Bradyn 82,769 2005 Period December 2010
1,152,-
Total Kamsarmax 895
Grain Harvester 76,417 2004 Period December 2010
Grain Express 76,466 2004 Period December 2010
Iron Knight 76,429 2004 Period December 2010
Coal Pride 72,493 1999 Spot
Isminaki 74,577 1998 Spot
Angela Star 73,798 1998 Spot
Elinakos 73,751 1997 Spot
Happy Day 71,694 1997 Spot
Iron Man (A) 72,861 1997 Period May 2010
Coal Age (A) 72,824 1997 Spot
Fearless I (A) 73,427 1997 Spot
Barbara (A) 73,307 1997 Period July 2010
Linda Leah (A) 73,317 1997 Spot
King Coal (A) 72,873 1997 Period July 2011
Coal Glory (A) 73,670 1995 Period December 2009
Powerful 70,083 1994 Spot
First Endeavour 69,111 1994 Spot
Rodon 73,656 1993 Spot
Birthday 71,504 1993 Period July 2010
Renuar 70,155 1993 Spot
Fortezza 69,634 1993 Spot
1,532,-
Total Panamax 047
July M 55,567 2005 Spot
Mairouli 53,206 2005 Period December 2009
Total Supramax 108,773
Emerald 45,588 1998 Spot
Princess I 38,858 1994 Spot
Marybelle 42,552 1987 Spot
Attractive 41,524 1985 Spot
Lady 41,090 1985 Spot
Total Handymax 209,612
Total Fleet 3,860,130
Average age 9.2 Yrs
Fleet to be delivered Type Dwt Estimated delivery (B)
--------------------------- -------- ------- ----------------------
Christine (D) Capesize 180,000 March 2010
Hope (E) Capesize 181,000 November 2010
Lillie (E) Capesize 181,000 December 2010
--------------------------- -------
Total fleet to be delivered 542,000
Fleet to be delivered (c) Type Dwt Estimated delivery (B)
--------------------------- -------- ------- ----------------------
Fritz (E) Capesize 180,000 May 2010
Benthe (E) Capesize 180,000 June 2010
Gayle Frances (E) Capesize 180,000 July 2010
Iron Lena (E) Capesize 180,000 August 2010
(1) A second charter on the vessel has been fixed commencing upon
completion of her current charter and through February 2016.
(A) These vessels were sold in 2007 and leased back on a bareboat charter
through July 2015.
(B) The delivery dates shown in this column are estimates based on the
delivery dates set forth in the relevant shipbuilding contracts or resale
agreements.
© No refund guarantee has been received for these newbuildings and Excel
does not believe that the respective new building contracts will
materialize. There can be no assurance that the vessels will be delivered
timely or at all.
(D) Excel holds a 42.8% interest in the joint venture that will own the
vessel.
(E) Excel holds a 50% interest in the joint ventures that will own these
vessels.
For further details on the fleet and their employment please refer to our
website at www.excelmaritime.com
Contact Information: Contacts: Investor Relations / Financial Media: Nicolas Bornozis President Capital Link, Inc. 230 Park Avenue - Suite 1536 New York, NY 10160, USA Tel: (212) 661-7566 Fax: (212) 661-7526 E-Mail: excelmaritime@capitallink.com www.capitallink.com Company: Lefteris Papatrifon Chief Financial Officer Excel Maritime Carriers Ltd. 17th Km National Road Athens-Lamia & Finikos Street 145 64 Nea Kifisia Athens, Greece Tel: 011-30-210-62-09-520 Fax: 011-30-210-62-09-528 E-Mail: ir@excelmaritime.com www.excelmaritime.com