-- Revenue from operations for the quarter amounted to $186.2 million as
compared to $189.2 million in the fourth quarter of 2008.
-- Net profit for the quarter was $81.8 million or $1.00 per weighted
average diluted share compared to a loss of $332.1 million or $7.56 per
weighted average diluted share in the fourth quarter of 2008.
-- The fourth quarter 2009 results include a non-cash unrealized
interest-rate swap gain of $8.1 million compared to a non-cash
unrealized interest-rate swap loss of $40.2 million in the
corresponding period in 2008. The changes in the fair values of
interest rate swaps are recorded in income as they do not meet the
criteria for hedge accounting. In addition, the fourth quarter
2009 results include a non cash loss on disposal of an ownership
interest in one of our joint ventures amounting to $3.7 million. Net
income, excluding the above items, for the fourth quarter of 2009
would have amounted to $77.4 million or $0.95 per weighted average
diluted share compared to an adjusted net income for the fourth
quarter of 2008 of $72.3 million or $1.64 per weighted average
diluted share (A reconciliation of adjusted Net income to Net Income
is included in a subsequent section of this release).
-- Adjusted EBITDA for the fourth quarter of 2009 was $62.0 million
compared to $54.9 million for the fourth quarter of 2008 (A
reconciliation of adjusted EBITDA to Net Income is included in a
subsequent section of this release).
-- An average of 47 and 47.1 vessels were operated during the fourth
quarters of 2009 and 2008, respectively, earning a blended average
time charter equivalent rate of $22,686 and $23,207 per day,
respectively.
Year ended December 31, 2009 Highlights:
-- Revenue from operations for the year ended December 31, 2009 amounted to
$756.6 million from $696.1 million in the year ended December 31, 2008.
-- Net profit for year ended December 31, 2009 was $339.8 million or $4.85
per weighted average diluted share compared to a loss of $55.9 million
or $1.53 per weighted average diluted share in the respective period of
2008.
-- The twelve months 2009 results include a non-cash unrealized interest-
rate swap gain of $27.2 million compared to an unrealized interest rate
swap loss of $25.8 million in the corresponding period in 2008.
-- Net income for 2009 includes also a non-cash item of $0.1 million
relating to the resulting gain from the sale of the vessel Swift and
$3.7 million relating to the loss on disposal of our ownership
interest in one of our joint ventures. Net income, excluding the
above items, would have amounted to $316.2 million or $4.52 per
weighted average diluted share for the year ended December 31, 2009
compared to an adjusted net income of $334.1 million or $9.01 per
weighted average diluted share for the respective period in 2008
(A reconciliation of adjusted Net income to Net Income is included
in a subsequent section of this release).
-- Adjusted EBITDA for the year ended December 31, 2009 was $231.7 million
compared to $308.0 million for the respective period of 2008 (A
reconciliation of adjusted EBITDA to Net Income is included in a
subsequent section of this release).
Fourth Quarter 2009 Corporate Developments
-- On October 27, 2009, in order to simplify and consolidate our newbuildings, we reached agreements with one of our joint venture partners for the exchange/transfer of our ownership interests in three consolidated joint venture companies under which we agreed to exchange our 50% ownership interest in Lillie ShipCo LLC for a consideration of $1.2 million and the transfer by the joint venture partner to us of its 50% ownership interest in Hope ShipCo LLC. In addition, the joint venture partner sold its 28.6% ownership interest in Christine ShipCo LLC to us for a consideration of $2.8 million. Following the completion of the transaction, we became 100% owner of Hope ShipCo LLC and increased our interest in Christine ShipCo LLC to 71.4%. Both companies continue being consolidated in our financial statements, while Lillie ShipCo was deconsolidated as of the date we ceased to have a financial interest in it. The above transaction resulted in a total loss of $10.9 million, out of which $3.7 million is related to the disposal of Lille ShipCo LLC and is separately reflected in our consolidated statements of operations, while the remaining $7.2 million is related to Hope ShipCo LLC and Christine ShipCo LLC and is reflected in our consolidated equity as of December 31, 2009, since the Company increased its controlling interest in those two consolidated companies. -- On October 27, 2009, Hope ShipCo LLC and Christine ShipCo LLC loan agreements were amended to reflect the changes in the ownership of the companies discussed above.Recent Developments
-- On February 11, 2010, Hope ShipCo LLC entered into a loan agreement for the pre and post delivery financing of Hope. The drawdown of the loan will be in various installments following the vessel construction progress through November 2010. The loan is repayable in twenty quarterly installments and a balloon payment through January 2016. The first installment will be due three months after the vessel delivery.Vessels new fixtures On November 5, 2009, the M/V Elinakos, a Panamax vessel of 73,751 dwt built in 1997, was fixed under a new time charter for a period of 4-6 months at a daily rate of $25,000. On November 6, 2009, the M/V Renuar, a Panamax vessel of 70,155 dwt built in 1993, was fixed under a new time charter for a period of 12-14 months at a daily rate of $22,500. On January 8, 2010, the M/V Princess I, a Handymax vessel of 38,858 dwt built in 1994, was fixed under a new time charter for a period of 3-4 months at a daily rate of $21,500. Time Charter Coverage We have secured under time charter employment 56% of our operating days for the year ending December 31, 2010. Management Commentary: Lefteris Papatrifon, Chief Financial Officer of Excel, stated, "We are pleased to report yet another profitable quarter with increased cash flow generation. Our balanced fleet deployment strategy has allowed us to take advantage of the continuously improving dry bulk market conditions and has resulted in increased EBITDA generation throughout the year. We believe that the performance of the dry bulk market throughout 2009 has verified our cautiously optimistic outlook that we have been communicating to the market since the first quarter of last year. We continue to believe that the dry bulk fundamentals remain intact, resulting in balanced market conditions for the short to medium term. Therefore, although we believe that our market will continue being volatile, we remain optimistic about the dry bulk market prospects and expect 2010 to be another financially strong year for our Company. During 2009, we have reduced our debt by approximately $217 million and our net debt to capitalization stood at 40% compared to 53% at the end of 2008. We will continue implementing our strategy of utilizing excess cash flows for further deleveraging while, at the same time, we will be looking forward to taking advantage of attractive growth opportunities that might be presented to us." Fourth Quarter 2009 Results: The Company reported net profit for the quarter of $81.8 million or $1.00 per weighted average diluted share compared to a loss of $332.1 million or $7.56 per weighted average diluted share in the fourth quarter of 2008. The fourth quarter 2009 results include a non-cash unrealized interest-rate swap gain of $8.1 million compared to a non-cash unrealized interest-rate swap loss of $40.2 million in the corresponding period in 2008. In addition, the fourth quarter 2009 results include a non cash loss on disposal of an ownership interest in one of our joint ventures amounting to $3.7 million. Net income, excluding the above items, for the fourth quarter of 2009 would have amounted to $77.4 million or $0.95 per weighted average diluted share compared to an adjusted net income for the fourth quarter of 2008 of $72.3 million or $1.64 per weighted average diluted share (A reconciliation of adjusted Net income to Net Income is included in a subsequent section of this release). Included in the above adjusted net income 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 $73.4 million ($0.9 per weighted average diluted share) and $68.7 million ($1.6 per weighted average diluted share) for the fourth quarters of 2009 and 2008, respectively, and the amortization of stock based compensation expense of $5.5 million ($0.07 per weighted average diluted share) and $1.9 million ($0.04 per weighted average diluted share), for the quarters ended December 31, 2009 and 2008, 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 and adopted FASB Accounting Standard Codification™ ("ASC") Topic 470-20 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 quarter ended December 31, 2009 was an increase in net income of approximately $1.2 million or $0.01 per weighted average diluted share in relation to the change in dry-dock and special survey policy and a decrease in net income of $1.5 million or $0.02 per weighted average diluted share in relation to the change in the accounting for the convertible notes. Revenues for the fourth quarter of 2009 amounted to $186.2 million as compared to $189.2 million for the same period in 2008, a decrease of approximately 1.6%. Included in revenues for the fourth quarter of 2009 and 2008 are $83.5 million and $78.8 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 and 47.1 vessels were operated during the fourth quarters of 2009 and 2008, respectively, earning a blended average time charter equivalent rate of $22,686 and $23,207 per day, respectively. Please refer to a subsequent section of this Press Release for a calculation of the TCE. Adjusted EBITDA for the fourth quarter of 2009 was $62.0 million compared to $54.9 million for the fourth quarter of 2008, an increase of approximately 12.9%. Please refer to a subsequent section of this Press Release for a reconciliation of adjusted EBITDA to Net Income. Year ended December 31, 2009: The Company reported net profit for year ended December 31, 2009 of $339.8 million or $4.85 per weighted average diluted share compared to a loss of $55.9 million or $1.53 per weighted average diluted share in the respective period of 2008. The twelve months 2009 results include a non-cash unrealized interest-rate swap gain of $27.2 million compared to a non-cash unrealized interest-rate swap loss of $25.8 million in the corresponding period in 2008. Net income for 2009 also includes a non-cash item of $0.1 million relating to the resulting gain from the sale of vessel Swift and $3.7 million relating to the loss on disposal of our ownership interest in one of our joint ventures. Net income, excluding the above items, would have amounted to $316.2 million or $4.52 per weighted average diluted share for the year ended December 31, 2009 compared to an adjusted net income of $334.1 million or $9.01 per weighted average diluted share for the respective period in 2008 (A reconciliation of adjusted Net income to Net Income is included in a subsequent section of this release). Included in the above adjusted net income are also the amortization of favorable and unfavorable time charters discussed above and amounting to a net income of $324.4 million ($4.6 per weighted average diluted share) and $205.5 million ($5.6 per weighted average diluted share) for the year ended December 31, 2009 and 2008, respectively and the amortization of stock based compensation expense of $19.8 million ($0.3 per weighted average diluted share) and $8.6 million ($0.2 per weighted average diluted share), respectively. The effect of the accounting changes discussed above in the year ended December 31, 2009 was a decrease in net income of approximately $1.2 million or $0.02 per weighted average diluted share due to the change in dry-dock and special survey policy and $5.9 million or $0.08 per weighted average diluted share due to the change in the accounting for the convertible notes. Revenues for the year amounted to $756.6 million as compared to $696.1 million for the same period in 2008, an increase of approximately 8.7%. Included in revenues for the year ended December 31, 2009 and 2008 are $364.4 million and $234.0 million, respectively of non-cash revenues relating to the amortization of unfavorable time charters that were fair valued upon acquiring Quintana. An average of 47.2 vessels were operated during the year ended December 31, 2009, earning a blended average time charter equivalent (TCE) rate of $21,932 per day compared to $31,291 per day for the year ended December 31, 2008 earned by an average of 38.6 vessels. Please refer to a subsequent section of this Press Release for a calculation of the TCE. Adjusted EBITDA for the year was $231.7 million compared to $308.0 million for the respective period of 2008, a decrease of approximately 24.8%. Please refer to a subsequent section of this Press Release for a reconciliation of adjusted EBITDA to Net Income. Conference Call Details: Tomorrow February 25, 2010 at 09:30 A.M. EST, 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 March 4, 2010 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 Statements and Other Financial Data Follow -
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE- MONTH PERIODS ENDED DECEMBER 31, 2008 AND 2009
(In thousands of U.S. Dollars, except for share and per share data)
Three-Month period ended
December 31,
2008
(as adjusted) 2009
------------ ------------
REVENUES:
Voyage revenues $ 110,145 $ 102,634
Time Charter fair value amortization 78,816 83,497
Revenue from managing related party vessels 192 106
------------ ------------
Revenue from operations 189,153 186,237
------------ ------------
EXPENSES:
Voyage expenses 10,950 4,971
Charter hire expense 8,274 8,276
Charter hire amortization 10,066 10,068
Commissions to a related party 659 658
Vessel operating expenses 21,976 20,316
Depreciation expense 30,317 31,075
Dry-docking and special survey cost 3,982 1,622
General and administrative expenses 7,762 12,178
------------ ------------
93,986 89,164
------------ ------------
Vessel impairment loss (2,232) -
Loss on disposal of JV ownership interest - (3,705)
Write down of goodwill (335,404) -
Loss from vessel's purchase cancellation (15,632) -
Income (loss) from operations (258,101) 93,368
------------ ------------
OTHER INCOME (EXPENSES):
Interest and finance costs (20,083) (12,004)
Interest income 400 286
Interest rate swap gain (loss) (42,659) 107
Foreign exchange gain (loss) 154 (91)
Other, net (659) 225
------------ ------------
Total other income (expenses), net (62,847) (11,477)
------------ ------------
Net income (loss) before taxes and income from
investment in affiliate (320,948) 81,891
------------ ------------
US Source Income taxes (189) (145)
------------ ------------
Net income (loss) before income from investment
in affiliate (321,137) 81,746
------------ ------------
Income from Investment in affiliate (34) -
Loss in value of investment in affiliate (10,963) -
------------ ------------
Net income (loss) (332,134) 81,746
------------ ------------
Plus: Loss assumed by the non controlling
interests 41 30
------------ ------------
------------ ------------
Net income (loss) attributable to Excel
Maritime Carriers Ltd. $ (332,093) $ 81,776
============ ============
Earnings (losses) per common share, basic $ (7.56) $ 1.05
============ ============
Weighted average number of shares, basic 43,985,293 77,895,466
============ ============
Earnings (losses) per common share, diluted $ (7.56) $ 1.00
============ ============
Weighted average number of shares, diluted 43,985,293 81,546,216
============ ============
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2008 AND 2009
(In thousands of U.S. Dollars, except for share and per share data)
Year ended
December 31,
2008 2009
(as adjusted) (unaudited)
------------ ------------
REVENUES:
Voyage revenues $ 461,203 $ 391,746
Time Charter fair value amortization 233,967 364,368
Revenue from managing related party vessels 890 488
------------ ------------
Revenue from operations 696,060 756,602
------------ ------------
EXPENSES:
Voyage expenses 28,145 19,317
Charter hire expense 23,385 32,832
Charter hire amortization 28,447 39,952
Commissions to a related party 3,620 2,260
Vessel operating expenses 69,684 83,197
Depreciation expense 98,753 123,411
Dry-docking and special survey cost 13,511 11,379
General and administrative expenses 32,925 42,995
------------ ------------
298,470 355,343
------------ ------------
Gain on sale of vessel - 61
Loss on disposal of JV ownership interest - (3,705)
Vessel impairment loss (2,232) -
Write down of goodwill (335,404) -
Loss from vessel's purchase cancellation (15,632) -
Income from operations 44,322 397,615
------------ ------------
OTHER INCOME (EXPENSES):
Interest and finance costs (61,942) (57,096)
Interest income 7,053 809
Interest rate swap loss (35,884) (1,126)
Foreign exchange gain (loss) 71 (322)
Other, net 1,585 408
------------ ------------
Total other income (expenses), net (89,117) (57,327)
------------ ------------
Net income (loss) before taxes and income from
investment in affiliate (44,795) 340,288
------------ ------------
US Source Income taxes (783) (660)
------------ ------------
Net income (loss) before income from investment
in affiliate (45,578) 339,628
------------ ------------
Income from Investment in affiliate 487 -
Loss in value of investment in affiliate (10,963) -
------------ ------------
Net income (loss) (56,054) 339,628
------------ ------------
Plus: Loss assumed by the non controlling
interests 140 154
------------ ------------
Net income (loss) attributable to Excel
Maritime Carriers Ltd. $ (55,914) $ 339,782
============ ============
Earnings (losses) per common share, basic $ (1.53) $ 5.03
============ ============
Weighted average number of shares, basic 37,003,101 67,565,178
============ ============
Earnings (losses) per common share, diluted $ (1.53) $ 4.85
============ ============
Weighted average number of shares, diluted 37,003,101 69,999,760
============ ============
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2008 AND 2009
(In thousands of U.S. Dollars)
December 31,
2008 2009
(as adjusted) (unaudited)
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 109,792 $ 100,098
Restricted cash 53 34,426
Accounts receivable 10,247 6,016
Other current assets 6,958 7,560
------------ ------------
Total current assets 127,050 148,100
------------ ------------
FIXED ASSETS:
Vessels, net 2,786,717 2,660,163
Advances for vessels under construction 106,898 71,184
Office furniture and equipment, net 1,722 1,450
------------ ------------
Total fixed assets, net 2,895,337 2,732,797
------------ ------------
OTHER NON CURRENT ASSETS:
Time charters acquired, net 264,263 224,311
Restricted cash 24,947 24,974
Investment in affiliate 5,212 -
------------ ------------
Total assets $ 3,316,809 $ 3,130,182
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt, net of
deferred financing fees $ 220,410 $ 134,681
Accounts payable 6,440 5,349
Other current liabilities 47,934 47,801
Current portion of financial instruments 40,119 29,343
------------ ------------
Total current liabilities 314,903 217,174
------------ ------------
Long-term debt, net of current portion and net
of deferred financing fees 1,256,707 1,121,765
Time charters acquired, net 650,781 280,413
Financial instruments 41,020 24,558
------------ ------------
Total liabilities 2,263,411 1,643,910
------------ ------------
Commitments and contingencies - -
------------ ------------
STOCKHOLDERS' EQUITY:
Preferred stock - -
Common stock 461 799
Additional paid-in capital 944,207 1,046,606
Other Comprehensive Loss (74) (85)
Retained earnings 94,063 433,845
Less: Treasury stock (189) (189)
------------ ------------
Excel Maritime Carriers Ltd. Stockholders'
equity 1,038,468 1,480,976
------------ ------------
Non-controlling interests 14,930 5,296
------------ ------------
Total Stockholders' Equity 1,053,398 1,486,272
------------ ------------
Total liabilities and stockholders'
equity $ 3,316,809 $ 3,130,182
============ ============
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2008 AND 2009
(In thousands of U.S. Dollars)
Year ended
December 31,
2008 2009
(as adjusted) (unaudited)
------------ ------------
Cash Flows from Operating Activities:
Net income (loss) $ (56,054) $ 339,628
Adjustments to reconcile net income (loss) to
net cash provided by operating activities 301,283 (194,786)
Changes in operating assets and liabilities:
Operating assets (2,259) 3,629
Operating liabilities 20,929 (1,219)
------------ ------------
Net Cash provided by Operating Activities $ 263,899 $ 147,252
------------ ------------
Cash Flows from Investing Activities:
Acquisition of Quintana, net of cash
acquired (692,420) -
Joint ventures ownership transfer - (1,591)
Advances for vessels under construction (84,866) (9,379)
Additions to vessel cost (342) (113)
Additions to office furniture and equipment (401) (146)
Payment for vessel's purchase cancellation (7,250) -
Proceeds received from Oceanaut's
liquidation - 5,212
Proceeds from sale of vessel - 3,735
------------ ------------
Net cash used in Investing Activities $ (785,279) $ (2,282)
------------ ------------
Cash Flows from Financing Activities:
Increase in restricted cash (10,000) (34,400)
Proceeds from long-term debt 1,405,642 5,067
Repayment of long-term debt (944,945) (216,851)
Payment of financing costs (15,290) (1,938)
Issuance of common stock, net of issuance
costs (131) 90,130
Capital contributions from non-controlling
interest owners 738 3,328
Dividends paid (48,514) -
------------ ------------
Net cash provided by (used in) Financing
Activities $ 387,500 $ (154,664)
------------ ------------
Net decrease in cash and cash equivalents (133,880) (9,694)
Cash and cash equivalents at beginning of
period 243,672 109,792
------------ ------------
Cash and cash equivalents at end of the period $ 109,792 $ 100,098
============ ============
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Interest payments $ 35,595 $ 56,159
U.S. Source income taxes 861 740
Non-cash financing activities
Class A common stock issued as part of the
consideration paid for the acquisition of
Quintana $ 682,333 $ -
Class A common stock issued as part of
vessel purchase cancellation 8,382 -
Adjusted EBITDA Reconciliation
(all amounts in thousands of U.S. Dollars)
Three-month
period ended Year ended
December 31, December 31,
2008 2009 2008 2009
Net income (loss) (332,093) 81,776 (55,914) 339,782
Interest and finance costs, net (1) 22,164 19,675 64,952 84,651
Depreciation 30,317 31,075 98,753 123,411
Dry-dock and special survey cost 3,982 1,622 13,511 11,379
Vessel impairment loss 2,232 - 2,232 -
Write down of goodwill 335,404 - 335,404 -
Loss from vessel's purchase
cancellation 8,382 - 8,382 -
Loss on disposal of JV ownership
interest - 3,705 - 3,705
Loss in value of investment 10,963 - 10,963 -
Unrealized swap (gain) loss 40,178 (8,064) 25,821 (27,238)
Amortization of T/C fair values (2) (68,750) (73,429) (205,520) (324,416)
Stock based compensation 1,922 5,528 8,596 19,847
Gain on sale of vessel - - - (61)
Taxes 189 145 783 660
-------- -------- -------- --------
Adjusted EBITDA 54,890 62,033 307,963 231,720
======== ======== ======== ========
(1) Includes swap interest paid and received
(2) Analysis:
Three-month
period ended Year ended
December 31, December 31,
2008 2009 2008 2009
Non-cash amortization of
unfavorable time charters
in revenue (78,816) (71,883) (233,967) (301,280)
Non-cash accelerated
amortization of M/V
Sandra, Coal Pride and
Grain Harvester time
charter fair value due to
charter termination - (11,614) - (63,088)
Non-cash amortization of
favorable time charters in
charter hire expense 10,066 10,068 28,447 39,952
---------- ---------- ---------- ----------
(68,750) (73,429) (205,520) (324,416)
========== ========== ========== ==========
Reconciliation of Net Income (loss) to Adjusted Net Income
(all amounts in thousands of U.S. Dollars)
Three-month
period ended Year ended
December 31, December 31,
2008 2009 2008 2009
Net income (loss) (332,093) 81,776 (55,914) 339,782
Unrealized swap loss (gain) 40,178 (8,064) 25,821 (27,238)
Goodwill impairment charge 335,404 - 335,404 -
Vessel impairment loss 2,232 - 2,232 -
Loss in value of investment 10,963 - 10,963 -
Loss from vessel purchase
cancellation 15,632 - 15,632 -
Loss on disposal of JV ownership
interest - 3,705 - 3,705
Gain on sale of vessel - - - (61)
-------- -------- -------- --------
Adjusted Net income 72,316 77,417 334,138 316,188
======== ======== ======== ========
Reconciliation of Earnings (losses) per Share (Diluted) to Adjusted
Earnings per Share (Diluted)
(all amounts in U.S. Dollars)
Three-month
period ended Year ended
December 31, December 31,
2008 2009 2008 2009
Earnings (losses) per Share (Diluted) $ (7.56) $ 1.00 $ (1.53) $ 4.85
Unrealized swap loss (gain) 0.91 (0.1) 0.7 (0.4)
Goodwill impairment charge 7.63 - 9.06 -
Vessel impairment loss 0.05 - 0.06 -
Loss in value of investment 0.25 - 0.30 -
Loss from vessel purchase cancellation 0.36 - 0.42 -
Loss on disposal of JV ownership
interest - 0.05 - 0.07
Gain on sale of vessel - - - - (*)
------- ------- ------- -------
Adjusted Earnings per Share (Diluted) $ 1.64 $ 0.95 $ 9.01 $ 4.52
======= ======= ======= =======
(*) Effect insignificant
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 Accounting Standard Codification™ ("ASC") Topic 470-20 which 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. ASC 470-20 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 an amendment contained in ASC 810 which establishes guidelines for accounting for changes in ownership percentages and for deconsolidation in partially owned subsidiaries. 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 the amendment made in ASC 810 which require 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 consolidated financial statements in accordance with ASC Topic 250 "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 months and the year ended December 31, 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)
CAPESIZE FLEET PANAMAX FLEET HANDYSIZE FLEET TOTAL FLEET
Three-month period ended December 31,
2008 2009 2008 2009 2008 2009 2008 2009
------ ------ ------ ------ ------ ------ ------ ------
Total
calendar
days 374 460 3,220 3,220 736 644 4,330 4,324
Available
days under
period
charter 374 460 2,484 2,225 98 92 2,956 2,777
Available
days under
spot/short
duration
charter - - 653 969 637 530 1,290 1,499
Utilization 100.0% 100.0% 97.4% 99.2% 99.9% 96.6% 98.1% 98.9%
Time
charter
equivalent
per ship
per
day-period 52,023 38,128 26,571 21,480 25,479 10,208 29,754 23,866
Time
charter
equivalent
per ship
per
day-spot - - 7,703 22,203 8,724 17,416 8,207 20,510
Time
charter
equivalent
per ship
per
day-weighted
average 52,023 38,128 22,642 21,700 10,959 16,351 23,207 22,686
Net daily
revenue
per ship
per day 52,023 38,128 22,061 21,518 10,937 15,798 22,757 22,434
Vessel
operating
expenses
per ship
per day (5,423) (5,230) (5,067) (4,604) (4,937) (4,804) (5,075) (4,698)
Net
Operating
cash flows
per ship
per day
before G&A
expenses 46,600 32,898 16,994 16,914 6,000 10,994 17,682 17,736
------ ------ ------ ------ ------ ------ ------ ------
Vessel Employment
(In U.S. Dollars per day, unless otherwise stated)
CAPESIZE FLEET PANAMAX FLEET HANDYSIZE FLEET TOTAL FLEET
Year ended December 31,
2008 2009 2008 2009 2008 2009 2008 2009
------ ------ ------ ------ ------ ------ ------ ------
Total
calendar
days 1,046 1,825 10,160 12,775 2,928 2,629 14,134 17,229
Available
days under
period
charter 1,016 1,804 8,457 9,099 614 460 10,087 11,363
Available
days under
spot/short
duration
charter 30 - 1,451 3,464 2,156 2,051 3,637 5,515
Utilization 100.0% 98.8% 97.5% 98.3% 94.6% 95.5% 97.1% 98.0%
Time
charter
equivalent
per ship
per
day-period 50,863 40,373 26,627 22,936 33,736 14,067 29,501 25,344
Time
charter
equivalent
per ship
per
day-spot 118,107 - 38,798 16,301 33,412 12,538 36,254 14,901
Time
charter
equivalent
per ship
per
day-weighted
average 52,777 40,373 28,410 21,107 33,484 12,818 31,291 21,932
Net daily
revenue
per ship
per day 52,777 39,898 27,706 20,757 31,676 12,243 30,384 21,485
Vessel
operating
expenses
per ship
per day (5,013) (5,280) (4,932) (4,731) (4,888) (4,994) (4,930) (4,829)
Net
Operating
cash flows
per ship
per day
before G&A
expenses 47,764 34,618 22,774 16,026 26,788 7,249 25,454 16,656
------ ------ ------ ------ ------ ------ ------ ------
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 three-month
period ended December For the year ended
31, December 31,
------------------------ ------------------------
2008 2009 2008 2009
----------- ----------- ----------- -----------
Voyage revenues 110,145 102,634 461,203 391,746
Voyage expenses (11,609) (5,629) (31,765) (21,577)
----------- ----------- ----------- -----------
Time Charter Equivalent 98,536 97,005 429,438 370,169
=========== =========== =========== ===========
Total available days 4,246 4,276 13,724 16,878
Daily Time charter
equivalent 23,207 22,686 31,291 21,932
Net daily revenue: We define this as the daily TCE rate including idle
time.
Daily vessel operating expenses: This includes crew costs, provisions, deck
and engine stores, lubricating oil, insurance, maintenance and repairs and
is calculated by dividing vessel operating expenses by total calendar days
for the relevant time period.
Daily general and administrative expense: This is calculated by dividing
general and administrative expense by total calendar days for the relevant
time period.
Expected Amortization Schedule for Fair Valued Time Charters for Next Year
(in USD millions) 1Q'10 2Q'10 3Q'10 4Q'10 Total
Amortization of
unfavorable time
charters (1) 67.9 66.8 55.7 54.4 244.8
Amortization of
favorable time charters(2) (9.9) (10.0) (10.1) (10.2) (40.2)
(1) Adjustment to Revenue from operations i.e. increases revenues
(2) Adjustment to Charter hire expenses i.e. increases charter hire
expense
Fleet List as of February 18, 2010:
Average
Charter Charter
Vessel Name Dwt Year Built Type Daily rate Expiration
Iron Miner 177,931 2007 Period $ 42,105 Feb 2012
$ 49,000
Kirmar 164,218 2001 Period (net) May 2013
Iron Beauty 164,218 2001 Period $ 36,500 May 2010
Lowlands Beilun 170,162 1999 Period $ 36,000 May 2010
Sandra (1) 180,274 2008 Period $ 32,000 Sep 2010
Total Capesize 856,803
Iron Manolis 82,269 2007 Period $ 22,000 Dec 2010
Iron Brooke 82,594 2007 Period $ 21,000 Dec 2010
Iron Lindrew 82,598 2007 Period $ 21,000 Dec 2010
Coal Hunter 82,298 2006 Period $ 22,000 Dec 2010
Pascha 82,574 2006 Period $ 21,000 Dec 2010
Coal Gypsy 82,221 2006 Period $ 22,000 Dec 2010
Iron Anne 82,220 2006 Period $ 22,000 Dec 2010
Iron Vassilis 82,257 2006 Period $ 22,000 Dec 2010
Iron Bill 82,187 2006 Period $ 22,000 Dec 2010
Santa Barbara 82,266 2006 Period $ 22,000 Dec 2010
Ore Hansa 82,209 2006 Period $ 22,000 Dec 2010
Iron Kalypso 82,224 2006 Period $ 22,000 Dec 2010
Iron Fuzeyya 82,209 2006 Period $ 22,000 Dec 2010
Iron Bradyn 82,769 2005 Period $ 22,000 Dec 2010
Total Kamsarmax 1,152,895
Grain Harvester 76,417 2004 Spot
Grain Express 76,466 2004 Period $ 22,000 Dec 2010
Iron Knight 76,429 2004 Period $ 22,000 Dec 2010
Coal Pride 72,493 1999 Spot
Isminaki 74,577 1998 Period $ 24,000 Mar 2010
Angela Star 73,798 1998 Spot $ 29,000 May 2010
Elinakos 73,751 1997 Spot $ 25,000 Apr 2010
Happy Day 71,694 1997 Spot
Iron Man (A) 72,861 1997 Period $ 18,500 May 2010
Coal Age (A) 72,824 1997 Period $ 21,250 Oct 2010
Fearless I (A) 73,427 1997 Period $ 22,250 Mar 2010
Barbara (A) 73,307 1997 Period $ 23,000 Jul 2010
Linda Leah (A) 73,317 1997 Spot
King Coal (A) 72,873 1997 Period $ 56,000 Jun 2011
Coal Glory (A) 73,670 1995 Spot
Powerful 70,083 1994 Spot
First Endeavour 69,111 1994 Spot
Rodon 73,656 1993 Spot
Birthday 71,504 1993 Period $ 16,500 Jul 2010
Renuar 70,155 1993 Period $ 22,500 Dec 2010
Fortezza 69,634 1993 Spot
Total Panamax 1,532,047
July M 55,567 2005 Period $ 25,000 May 2010
Mairouli 53,206 2005 Spot
Total Supramax 108,773
Emerald 45,588 1998 Spot
Princess I 38,858 1994 Period $ 21,500 Apr 2010
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 9.7 Yrs
---------- --------- ---------- ---------- ----------
Fleet to be Estimated
delivered Type Dwt delivery (B)
-------- ------- -------------
Christine (D) Capesize 180,000 April 2010
Hope (E) Capesize 181,000 November 2010
Total fleet to be
delivered 361,000
Fleet to be Estimated
delivered (c) Type Dwt delivery (B)
-------- ------- -------------
Fritz (F) Capesize 180,000 May 2010
Benthe (F) Capesize 180,000 June 2010
Gayle Frances (F) Capesize 180,000 July 2010
Iron Lena (F) 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 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.
(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.
(C) 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 71.4% interest in the joint venture that will own the vessel.
(E) Excel holds 100% interest in the company that will own the vessel.
(F) 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