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Excel Maritime Reports Third Quarter 2008 Diluted EPS of $2.70 and Declares Dividend of $0.40 per Share ATHENS, GREECE--(MARKET WIRE)--Nov 5, 2008 -- Excel Maritime Carriers Ltd (NYSE:EXM - News), an
owner and operator of dry bulk carriers and a leading international
provider of worldwide seaborne transportation services for
dry bulk
cargoes, announced today its operating and financial results
for the third
quarter and nine month period ended September 30, 2008. 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 8.9 years; Third Quarter Highlights:
-- Revenues from operations increased by approximately 436% to $231.6
million in the third quarter of 2008 compared to $43.2 million in the
corresponding period in 2007. Revenues include non-cash adjustments of
approximately $84.7 million, relating to the amortization of unfavorable
time charters that were fair valued upon acquiring Quintana;
-- Net income for the quarter increased by approximately 544% to $119.2
million or $2.70 per diluted share, compared to $18.5 million or $0.93 per
diluted share in the third quarter of 2007. Net income includes a non-cash
interest-rate swap loss in the period of approximately $6.7 million
compared to a loss of $0.7 million in the third quarter of 2007;
-- Adjusted EBITDA for the quarter was approximately $107.3 million
compared to $29.5 million in the third quarter of 2007, an increase of
approximately 264%;
-- An average of 47 vessels were operated during the third quarter of
2008 earning a blended average adjusted time charter equivalent rate of
$33,804 per day compared to $29,384 per day for the third quarter of 2007;
-- As a result of the merger with Quintana which caused a reduction in
the average age of the fleet and the application of joint fleet management
processes the Company has been able to generate significant savings in
vessel operating expenses. During the third quarter of 2008 the average
vessel operating expenses per day dropped sharply to $4,499 (Panamax) and
to $4,378 (Handysize) which corresponds to savings of 28% and 20%
respectively when compared to the same period in 2007. Management believes
that maintaining low vessel operating cost levels lends strength to the
comparative advantage of the Company and intends to continue its efforts to
control expenses and deliver further synergies from the merger of Excel
with Quintana;
-- The Company maintains its increased quarterly minimum dividend
guidance of $0.40 per share. The third quarter 2008 dividend of $0.40 per
share is payable on December 5, 2008 to shareholders of record as of
November 20, 2008.
Management Commentary: Stamatis Molaris, President and Chief Executive Officer of Excel, stated, "The Company's strong third quarter results are underpinned by its significant time charter coverage despite the soft rate environment experienced in September. We also believe that our time charter coverage of approximately 85% for the fourth quarter 2008 and 61% for the full year 2009, provide cash flow security and insulate the Company from the challenging market conditions that we are currently experiencing mainly caused by an unprecedented credit freeze. We also pleased to report the significant reduction in our vessel operating costs as the result of the synergies created from the merger of Excel with Quintana, which enhances our profitability." Third Quarter 2008 Results: Following the acquisition of Quintana on April 15, 2008, the third quarter results reflect a full quarter's operations of the combined entity. For the third quarter of 2008, Excel reported net income of $119.2 million, or $2.70 per diluted share, compared to net income of $18.5 million, or $0.93 per diluted share, in the third quarter of 2007. The third quarter 2008 results include a non-cash unrealized interest-rate swap loss of $6.7 million compared to an unrealized interest-rate swap loss of $0.7 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. Before the unrealized swap losses, adjusted net income is $125.9 million, or $2.85 per adjusted diluted share, compared to $19.3 million or $0.97 per share in the third quarter 2007, an increase of approximately 552%. Revenues for the third quarter of 2008 amounted to $231.6 million as compared to $43.2 million for the same period in 2007, an increase of approximately 436%. Included in revenues for the third quarter of 2008 are $84.7 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 third quarter of 2008 include an amount of $4.0 million or $0.09 per diluted share representing the amortization cost related to the stock based incentive program which was initiated in the second quarter of 2008. Adjusted EBITDA for the third quarter of 2008 was $107.3 million compared to $29.5 million for the third quarter of 2007, an increase of approximately 264%. Adjusted EBITDA for the third quarter excludes bareboat charter amortization of approximately $10.2 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 an amount of $84.7 million representing the amortization of unfavorable time charters that were fair valued upon the acquisition of Quintana and reflected as a liability on Excel's balance sheet. The amortization increases revenue from operations and there was no such amortization in the corresponding period in 2007. Please refer to a subsequent section of this Press Release for a reconciliation of adjusted EBITDA to Net Income. An average of 47 vessels were operated during the third quarter of 2008 earning a blended average adjusted time charter equivalent rate of $33,804 per day, compared to an average of 16.0 vessels operated during the third quarter of 2007 earning a blended average time charter equivalent rate of $29,384 per day. Nine Months to September 30, 2008 The nine month period 2008 results include the consolidated results of Excel and Quintana starting from April 16, 2008. In this respect, approximately $85.7 million of revenues earned by Quintana between January 1 and April 15, 2008 have not been included in the nine month period results. For the nine-month period ended September 30, 2008, Excel reported net income of $284.5 million, or $8.21 per diluted share, compared to net income of $50.8 million, or $2.54 per diluted share, for the corresponding period in 2007. The nine months 2008 results include a non-cash unrealized swap gain of $14.4 million compared to an unrealized swap loss of $0.5 million in the corresponding period of 2007. The nine months results of 2007 also include a gain on sale of vessels of $6.2 million whereas no such gains were recorded in the nine months period ended September 30, 2008. Before the unrealized swap gain or loss and the gain on sale of vessel, adjusted net income is $270.1 million, or $7.80 per adjusted diluted share, compared to $45.1 million or $2.26 per share in the nine months of 2007, an increase of approximately 499%. Revenues for the nine months to September 30, 2008 amounted to $506.9 million as compared to $116.6 million for the same period in 2007, an increase of 335%. Included in revenues for the same period of 2008 is a non-cash time charter amortization of $160.3 million, as discussed above. There were no such non-cash revenues recorded in the corresponding period in 2007. Adjusted EBITDA for the nine months to September 30, 2008 was $248.0 million compared to $75.9 million for the nine months to September 30, 2007, an increase of approximately 227%. Adjusted EBITDA for the nine months to September 30, 2008 excludes bareboat charter amortization of approximately $18.5 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 35.8 vessels were operated during the nine months to September 30, 2008 earning a blended average adjusted time charter equivalent rate of $34,912 per day, compared to an average of 16.5 vessels operated during the same period of 2007 earning a blended average time charter equivalent rate of $25,601 per day. Dividend Declaration: The Board of Directors has declared a dividend of $0.40 per share payable on December 5, 2008 to all shareholders of record as of November 20, 2008. Inclusive of this dividend, Excel Maritime has declared an aggregate dividend of $1.80 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: Tomorrow November 6, 2008 at 10:00 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 November 14, 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 QUARTER ENDED SEPTEMBER 30, 2008 AND 2007
(In thousands of U.S. Dollars, except for share and per share data)
Third Quarter
----------------------
2008 2007
---------- ----------
REVENUES:
Voyage revenues 146,717 43,008
Time Charter fair value amortization 84,703 -
Revenue from managing related party vessels 233 227
---------- ----------
Revenue from operations 231,653 43,235
---------- ----------
EXPENSES:
Voyage expenses 7,051 2,209
Charter hire expense 18,341 -
Commission to a related party 1,139 536
Vessel operating expenses 19,581 8,328
Depreciation expense 30,795 6,793
Amortization of dry-docking and special survey 1,914 1,050
General and administrative expenses 10,331 3,352
---------- ----------
89,152 22,268
---------- ----------
Income from operations 142,501 20,967
---------- ----------
OTHER INCOME (EXPENSES):
Interest and finance costs (17,016) (3,340)
Interest income 2,028 1,454
Interest rate swap losses, net (10,856) (669)
Foreign exchange losses 125 (47)
Other, net 2,377 79
---------- ----------
Total other income (expenses), net (23,342) (2,523)
---------- ----------
---------- ----------
Net income before taxes, minority interest and
income from investment in affiliate 119,159 18,444
---------- ----------
US Source Income taxes (105) (247)
---------- ----------
Net income before minority interest and income from
investment in affiliate 119,054 18,197
---------- ----------
Minority Interest 48 -
Income from Investment in affiliate 117 350
---------- ----------
Net income 119,219 18,547
========== ==========
Earnings per common share, basic $ 2.72 $ 0.93
========== ==========
Weighted average number of shares, basic 43,812,129 19,949,644
========== ==========
Earnings per common share, diluted $ 2.70 $ 0.93
========== ==========
Weighted average number of shares, diluted 44,236,338 19,978,365
========== ==========
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
(In thousands of U.S. Dollars, except for share and per share data)
Nine Months ended
September 30,
----------------------
2008 2007
---------- ----------
REVENUES:
Voyage revenues 345,855 115,999
Time Charter fair value amortization 160,354 -
Revenue from managing related party vessels 698 592
---------- ----------
Revenue from operations 506,907 116,591
---------- ----------
EXPENSES:
Voyage expenses 17,195 7,355
Charter hire expense 33,492 -
Commission to a related party 2,961 1,449
Vessel operating expenses 47,708 24,851
Depreciation expense 68,436 20,868
Amortization of dry-docking and special survey 5,182 2,605
General and administrative expenses 25,163 8,632
---------- ----------
200,137 65,760
---------- ----------
Gain on sale of vessel - 6,194
Income from operations 306,770 57,025
---------- ----------
OTHER INCOME (EXPENSES):
Interest and finance costs (37,927) (10,457)
Interest income 6,653 4,039
Interest rate swap gain, net 6,775 (255)
Foreign exchange losses (83) (98)
Other, net 2,244 55
---------- ----------
Total other income (expenses), net (22,338) (6,716)
---------- ----------
---------- ----------
Net income before taxes, minority interest and
income from investment in affiliate 284,432 50,309
---------- ----------
US Source Income taxes (594) (359)
---------- ----------
Net income before minority interest and income from
investment in affiliate 283,838 49,950
---------- ----------
Minority Interest 99 2
Income from Investment in affiliate 521 813
---------- ----------
Net income 284,458 50,765
========== ==========
Earnings per common share, basic $ 8.21 $ 2.54
========== ==========
Weighted average number of shares, basic 34,658,716 19,949,644
========== ==========
Earnings per common share, diluted $ 8.21 $ 2.54
========== ==========
Weighted average number of shares, diluted 34,658,716 19,977,878
========== ==========
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AT SEPTEMBER 30, 2008 (UNAUDITED) AND DECEMBER 31, 2007
(In thousands of U.S. Dollars)
September December
ASSETS 30, 2008 31, 2007
--------- ---------
CURRENT ASSETS:
Cash and cash equivalents 105,706 243,672
Restricted cash 19,842 3,175
Accounts receivable 14,403 1,506
Other current assets 9,701 4,381
--------- ---------
Total current assets 149,652 252,734
--------- ---------
FIXED ASSETS:
Vessels, net 2,670,099 527,164
Advances for vessels' acquisitions/new-buildings 208,360 -
Office furniture and equipment, net 1,788 1,466
--------- ---------
Total fixed assets, net 2,880,247 528,630
--------- ---------
OTHER NON CURRENT ASSETS:
Goodwill 321,404 400
Deferred assets, net 14,750 15,119
Time charters acquired, net 274,329 -
Restricted cash 100,384 11,825
Investment in affiliate 16,209 15,688
--------- ---------
Total assets 3,756,975 824,396
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt, net of deferred
financing fees 260,831 39,179
Accounts payable 8,034 4,306
Other current liabilities 46,665 10,449
Current portion of financial instruments 19,890 2,056
--------- ---------
Total current liabilities 335,420 55,990
--------- ---------
Long-term debt, net of current portion and net of
deferred financing fees 1,326,137 368,585
Time charters acquired, net 715,597 -
Financial instruments 21,071 -
--------- ---------
Total liabilities 2,398,225 424,575
--------- ---------
Commitments and contingencies - -
Minority interest in equity of consolidated joint
ventures 14,629 -
STOCKHOLDERS' EQUITY:
Preferred stock - -
Common stock 448 200
Additional paid-in capital 884,041 193,897
Other Comprehensive Loss (66) (65)
Retained earnings 459,887 205,978
Less: Treasury stock (189) (189)
--------- ---------
Total stockholders' equity 1,344,121 399,821
--------- ---------
--------- ---------
Total liabilities and stockholders' equity 3,756,975 824,396
========= =========
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
(In thousands of U.S. Dollars)
Nine Months ended
September 30,
--------------------
2008 2007
--------- ---------
Cash Flows from Operating Activities:
Net income for the period 284,458 50,765
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 77,025 23,757
Time charter amortization (136,770) -
Unrealised interest rate swap (gain) loss (14,357) 482
Gain on sale of vessel - (6,194)
Stock-based compensation 6,674 784
Income from investment in affiliate (521) (813)
Minority interest share in net loss of
consolidated joint ventures (99) (2)
Changes in operating assets and liabilities:
Operating assets (9,158) 1,493
Operating liabilities 21,254 4,195
Payments for dry docking and special survey (9,529) (6,352)
--------- ---------
Net Cash provided by Operating Activities 218,977 68,115
--------- ---------
Cash Flows from Investing Activities:
Acquisition of Quintana, net of cash acquired (692,420) -
Advances for vessel acquisitions/newbuildings (37,270) (25,401)
Additions to vessel cost (342) -
Additions to office furniture and equipment (358) (683)
Investment in affiliate - (11,000)
Proceeds from sale of vessel - 15,740
--------- ---------
Net cash used in Investing Activities (730,390) (21,344)
--------- ---------
Cash Flows from Financing Activities:
Proceeds from long-term debt 1,405,642 -
Repayment of long-term debt (881,395) (28,544)
Increase in restricted cash (105,226) -
Dividends paid (30,549) (7,920)
Payment of financing costs (15,290) -
Share capital issuance costs (131) -
Minority interest contribution 396 -
Payment from a related party - 2,024
--------- ---------
Net cash provided by (used in) Financing Activities 373,447 (34,440)
--------- ---------
Net increase (decrease) in cash and cash equivalents (137,966) 12,331
Cash and cash equivalents at beginning of period 243,672 86,289
--------- ---------
Cash and cash equivalents at end of the period 105,706 98,620
========= =========
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Interest payments 19,285 9,977
U.S. source income taxes 638 237
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 the three months For the nine months
ended September 30, ended September 30,
-------------------- --------------------
2008 2007 2008 2007
--------- ---------- --------- ---------
Net income $ 119,219 $ 18,547 $ 284,458 $ 50,765
Interest and finance costs, net
(1) 19,183 1,810 38,856 6,191
Depreciation and amortization 32,709 7,843 73,618 23,473
Unrealized swap (gain) loss 6,661 745 (14,357) 482
Amortization of T/C fair values
(2) (74,495) - (141,831) -
Stock based compensation 3,953 264 6,674 784
Gain on sale of vessel - - - (6,194)
Taxes 105 247 594 359
--------- ---------- --------- ---------
Adjusted EBITDA $ 107,335 $ 29,456 $ 248,012 $ 75,860
========= ========== ========= =========
(1) Includes swap interest paid and received
(2) Analysis:
3-months 9-months
ended ended
September September
30, 2008 30, 2008
---------- ----------
Non-cash amortization of unfavourable time charters
in revenue $ (84,703) $ (160,354)
Non-cash amortization of favourable time charters
in charter hire expense 10,208 18,523
---------- ----------
$ (74,495) $ (141,831)
========== ==========
Reconciliation of Net Income to Adjusted Net Income
(all amounts in thousands of U.S. Dollars)
For the three months For the nine months
ended September 30, ended September 30,
--------------------- --------------------
2008 2007 2008 2007
---------- ---------- --------- ---------
Net income $ 119,219 $ 18,547 $ 284,458 $ 50,765
Unrealized swap (gain) loss 6,661 745 (14,357) 482
Gain on sale of vessel - - - (6,194)
---------- ---------- --------- ---------
Adjusted Net income $ 125,880 $ 19,292 $ 270,101 $ 45,053
========== ========== ========= =========
Reconciliation of Earnings per Share (Diluted) to Adjusted Earnings per
Share (Diluted)
(all amounts in U.S. Dollars)
For the three months For the nine months
ended September 30, ended September 30,
--------------------- --------------------
2008 2007 2008 2007
---------- ---------- --------- ---------
Earnings per Share (Diluted) $ 2.70 $ 0.93 $ 8.21 $ 2.54
Unrealized swap (gain) loss 0.15 0.04 (0.41) 0.02
Gain on sale of vessel 0.00 0.00 0.00 (0.31)
---------- ---------- --------- ---------
Adjusted Earnings per Share
(Diluted) $ 2.85 $ 0.97 $ 7.79 $ 2.26
========== ========== ========= =========Disclosure of Non-GAAP Financial Measures 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 or losses 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 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. 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 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 during the third quarter and the nine months ended September 30, 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:
Vessel Employment
(In U.S. Dollars per day, unless otherwise stated)
CAPESIZE
FLEET PANAMAX FLEET HANDYSIZE FLEET TOTAL FLEET
3m to September 30,
2008 2007 2008 2007 2008 2007 2008 2007
------- ---- ------- ------- ------- ------- ------- -------
Total
ownership
days 368 - 3,220 920 736 552 4,324 1,472
Operating days
under period
charter 368 - 2,787 682 92 276 3,247 958
Operating days
under
spot/short
duration
charter - - 366 136 569 276 935 412
Utilization 100.0% - 97.9% 88.9% 89.8% 100.0% 96.7% 93.1%
Time charter
equivalent
per ship per
day-period 52,409 - 25,894 26,805 28,200 26,424 28,964 26,695
Time charter
equivalent
per ship per
day-spot - - 66,274 42,905 40,523 32,045 50,612 35,638
Time charter
equivalent
per ship per
day-weighted
average 52,409 - 30,581 29,482 38,808 29,235 33,804 29,384
Net daily
revenue per
ship per day 52,409 - 29,954 26,213 34,834 29,235 32,696 27,348
Vessel
operating
expenses per
ship per day (5,033) - (4,499) (6,244) (4,378) (5,458) (4,524) (5,950)
Net Operating
cash flows
per ship per
day before
G&A expenses 47,376 - 25,455 19,969 30,456 23,777 28,172 21,398
------- ---- ------- ------- ------- ------- ------- -------
Vessel Employment
(In U.S. Dollars per day, unless otherwise stated)
CAPESIZE
FLEET PANAMAX FLEET HANDYSIZE FLEET TOTAL FLEET
9m to September 30,
2008 2007 2008 2007 2008 2007 2008 2007
------- ---- ------- ------- ------- ------- ------- -------
Total
ownership
days 672 - 6,940 2,730 2,192 1,767 9,804 4,497
Operating days
under period
charter 642 - 5,973 2,379 516 687 7,131 3,066
Operating days
under
spot/short
duration
charter 30 - 798 151 1,519 970 2,347 1,121
Utilization 100.0% - 97.6% 92.7% 92.8% 93.8% 96.7% 93.1%
Time charter
equivalent
per ship per
day-period 50,188 - 26,651 25,609 35,303 22,649 29,397 24,945
Time charter
equivalent
per ship per
day-spot 118,107 - 64,266 42,245 43,754 25,092 51,669 27,396
Time charter
equivalent
per ship per
day-weighted
average 53,220 - 31,084 26,602 41,611 24,079 34,912 25,601
Net daily
revenue per
ship per day 53,197 - 30,325 24,653 38,640 22,575 33,752 23,834
Vessel
operating
expenses per
ship per day (4,785) - (4,869) (5,846) (4,871) (5,026) (4,864) (5,524)
Net Operating
cash flows
per ship per
day before
G&A expenses 48,412 - 25,456 18,807 33,769 17,549 28,888 18,310
------- ---- ------- ------- ------- ------- ------- -------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, dry dockings 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, 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. Operating 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 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
(all amounts in thousands of U.S. Dollars, except for Daily Time Charter
Equivalent and available days)
For the three months For the nine months
ended September 30, ended September 30,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Voyage revenues 231,420 43,008 506,209 115,999
Voyage expenses (8,190) (2,745) (20,156) (8,804)
Amortization of unfavourable
time charters in revenue (84,703) - (160,354) -
Straight-line revenue
adjustment 2,849 - 5,203 -
Total revenue, net of voyage
expenses and time charter
amortization 141,376 40,263 330,902 107,195
Total available days 4,182 1,370 9,478 4,187
--------- --------- --------- ---------
Daily Time charter equivalent $ 33,806 $ 29,389 $ 34,913 $ 25,602
========= ========= ========= =========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) Q4'08 Q1'09 Q2'09 Q3'09 Total Amortization of unfavourable time charters (1) 81.5 77.7 78.6 79.4 317.2 Amortization of favourable time charters (2) (10.3) (9.9) (10.0) (10.1) (40.3) (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 October 31, 2008: The following table represents our fleet as of October 31, 2008:
TC Expiration FV of
Year Date (max vessels at
Name Type Dwt Built period) merger (1)
--------- --------- ------ --------------- ----------
Capesize
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
Lowlands Beilun Capesize 170,162 1999 June 2010 131.0
---------
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
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
Happy Day Panamax 71,694 1997 January 2009 n/a
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 November 2008 -
Barbara (A) Panamax 73,390 1997 November 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 November 2008 -
Powerful Panamax 70,083 1994 July 2009 n/a
First Endeavour Panamax 69,111 1994 October 2009 n/a
Rodon Panamax 73,670 1993 December 2008 n/a
Birthday Panamax 71,504 1993 November 2008 n/a
Renuar Panamax 70,128 1993 November 2008 n/a
Fortezza Panamax 69,634 1993 November 2008 n/a
---------
Total Panamax 21 1,532,328
TC Expiration FV of
Year Date (max vessels at
Name Type Dwt Built period) merger (1)
--------- --------- ------- --------------- ----------
Supramax
July M Supramax 55,567 2005 November 2008 n/a
Mairouli Supramax 53,206 2005 November 2008 n/a
---------
Total Supramax 2 108,773
Handymax
Emerald Handymax 45,588 1998 December 2008 n/a
Princess I Handymax 38,858 1994 July 2009 n/a
Marybelle Handymax 42,552 1987 November 2008 n/a
Attractive Handymax 41,524 1985 November 2008 n/a
Lady Handymax 41,090 1985 December 2008 n/a
Swift Handymax 37,687 1984 November 2008 n/a
---------
Total Supramax 6 247,299
---------
GRAND TOTAL 47 3,718,059
=========
Average age 8.9 yrs
Estimated
Fleet to be delivered Type Dwt delivery (B)
------------- ------------- -------------
Sandra Capesize 180,000 December 2008
Christine (C) Capesize 180,000 May 2010
Hope (D) Capesize 181,000 November 2010
Lillie (D) Capesize 181,000 December 2010
Total fleet to be delivered 722,000(1) 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 does not believe that the following new building contracts will materialize:
----------- ----------- -----------
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
----------- ----------- -----------(C) 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: 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
http://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
http://www.excelmaritime.com
Source: Excel Maritime
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