ATHENS, GREECE -- 11/03/09 --
Excel Maritime Carriers Ltd (NYSE: EXM), 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, 2009.
Third Quarter 2009 Highlights:
-- Revenue from operations for the quarter amounted to $174.4 million as
compared to $231.6 million in the third quarter of 2008.
-- Net profit for the quarter was $62.0 million or $0.79 per weighted
average diluted share compared to $117.6 million or $2.66 per weighted
average diluted share in the third quarter of 2008. The third quarter 2009
results include a non-cash unrealized interest-rate swap loss of $1.8
million compared to an unrealized interest-rate swap loss of $6.7 million
in the corresponding period in 2008. Swap gains and losses are recorded in
income as they do not meet the criteria for hedge accounting. Net income,
excluding the above item, for the third quarter of 2009 would amount to
$63.8 million or $0.81 per weighted average diluted share compared to
respective income for the third quarter of 2008 of $124.3 million or $2.81
per weighted average diluted share.
-- Adjusted EBITDA for the third quarter of 2009 was $59.1 million
compared to $110.1 million for the third 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 third quarters of
2009 and 2008 earning a blended average time charter equivalent rate of
$21,912 and $33,806 per day, respectively.
Nine Months 2009 Highlights:
-- Revenue from operations for the nine-month period ended September 30,
2009 increased to $570.4 million from $506.9 million in the nine-month
period ended September 30, 2008.
-- Net profit for the nine-month period ended September 30, 2009 was
$258.0 million or $3.91 per weighted average diluted share compared to
$276.2 million or $7.97 per weighted average diluted share in the
respective period of 2008. The nine months 2009 results include a non-cash
unrealized interest-rate swap gain of $19.2 million compared to an
unrealized interest-rate swap gain of $14.4 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 vessel Swift. Net
income, excluding the above items, would amount to $238.8 million or $3.62
per weighted average diluted share for the nine month period ended
September 30, 2009 compared to $261.8 million or $7.55 per weighted average
diluted share for the respective period in 2008.
-- Adjusted EBITDA for the nine month period ended September 30, 2009 was
$169.7 million compared to $253.1 million for the respective period of
2008. A reconciliation of adjusted EBITDA to Net Income is included in a
subsequent section of this release.
Third Quarter 2009 Corporate Developments
On August 11, 2009, we completed our offering to the public of 6,000,000
shares of our Class A common stock. The Offered Shares were priced at $8.00
per share gross of underwriters' commissions and expenses and the total net
proceeds to us from the offering were approximately $45.2 million. We used
the net offering proceeds for repayment of debt as well as to build up our
committed capital expenditure reserve account, which we may utilize for
future capital expenditure requirements.
Recent Developments
We recently reached agreements with our joint venture partners aimed to
consolidate and simplify our new buildings program. These agreements, as
detailed below, provide us with direct control of one Capesize vessel and
majority control of another one:
-- On October 27, 2009 we completed an agreement with our joint venture
partners for the transfer of our membership interests in certain
consolidated joint venture companies under which we agreed to sell our 50%
membership interest in Lillie ShipCo LLC for a consideration of $1.2
million and the transfer by one of the joint venture partners to us of its
50% membership interest in Hope ShipCo LLC. In addition, in the context of
the above agreement, one of the joint venture partners sold its 28.6%
membership 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 will continue being consolidated in our financial
statements, while Lillie ShipCo will be deconsolidated as of the date we
ceased to have a financial interest in it. We are currently evaluating the
effect of the above transaction in our consolidated financial statements
for the fourth quarter of 2009.
-- 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.
Vessels new fixtures
On October 15, 2009 the M/V Isminaki, a Panamax vessel of 74,577 dwt built
in 1998, was fixed under a new time charter for a period of 4-6 months at a
daily rate of $24,000.
On October 20, 2009 the M/V Coal Age, a Panamax vessel of 72,824 dwt built
in 1997, was fixed under a new time charter for a period of 11-13 months at
a daily rate of $21,250.
On October 21, 2009 the M/V Fearless I, a Panamax vessel of 73,427 dwt
built in 1997, was fixed under a new time charter for a period of 4-6
months at a daily rate of $22,250.
Time Charter Coverage
We have secured under time charter employment 69% of our operating days for
the fourth quarter of 2009 and 54% for 2010.
Management Commentary:
Lefteris Papatrifon, Chief Financial Officer of Excel, stated, "For one
more quarter, we have been able to deliver solid operating results. Our
chartering strategy has allowed us, despite the prevailing rate volatility
in our market, to generate stable and slightly increased cash flows on a
quarter over quarter basis, as demonstrated by the Adjusted EBITDA of $59.1
million earned in the third quarter of this year.
During the third quarter, we also took proactive measures in strengthening
and simplifying our balance sheet. The capital increase concluded in early
August has allowed us to further deleverage and has also provided equity
financing for our 2010 new building commitments. Additionally, the
agreements reached with our joint venture partners enable us to consolidate
and simplify our new buildings program.
At the same time, we have continued taking advantage of rate strengthening
opportunities by fixing vessels on medium to long term charters at
attractive rates, allowing us to enhance the stability of cash flows."
Third Quarter 2009 Results:
The Company reported net profit for the quarter of $62.0 million or $0.79
per weighted average diluted share as compared to net income of $117.6
million or $2.66 per weighted average diluted share for the third quarter
of 2008.
The third quarter 2009 results include a non-cash unrealized interest-rate
swap loss of $1.8 million compared to an unrealized interest-rate swap loss
of $6.7 million in the corresponding period in 2008. Net income, excluding
the above items, for the third quarter of 2009 would amount to $63.8
million or $0.81 per weighted average diluted share compared to respective
income for the third quarter of 2008 of $124.3 million or $2.81 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 $66.4 million ($0.84 per weighted average
diluted share) and $71.8 million ($1.62 per weighted average diluted share)
for the third quarters of 2009 and 2008, respectively, and the amortization
of stock based compensation expense of $8.9 million ($0.11 per weighted
average diluted share) and $4.0 million ($0.09 per weighted average diluted
share), for the three months ended September 30, 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, 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 ended September 30, 2009 was an increase
in net income of approximately $1.0 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 third quarter of 2009 amounted to $174.4 million as
compared to $231.6 million for the same period in 2008, a decrease of
approximately 24.7%.
Included in revenues for the third quarters of 2009 and 2008 are $76.4
million and $81.9 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 third quarters of 2009
and 2008 earning a blended average time charter equivalent rate of $21,912
and $33,806 per day, respectively. Please refer to a subsequent section of
this Press Release for a calculation of the TCE.
Adjusted EBITDA for the third quarter of 2009 was $59.1 million compared to
$110.1 million for the third quarter of 2008, a decrease of approximately
46.3%. Please refer to a subsequent section of this Press Release for a
reconciliation of adjusted EBITDA to Net Income.
Nine Months to September 30, 2009:
The Company reported net profit for the period of $258.0 million or $3.91
per weighted average diluted share as compared to net income of $276.2
million or $7.97 per weighted average diluted share for the respective
period of 2008.
The nine months 2009 results include a non-cash unrealized interest-rate
swap gain of $19.2 million compared to an unrealized interest-rate swap
gain of $14.4 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 vessel Swift.
Net income, excluding the above items, would amount to $238.8 million or
$3.62 per weighted average diluted share for the nine month period ended
September 30, 2009 compared to $261.8 million or $7.55 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 $251.0 million ($3.8 per weighted average diluted share) and
$136.8 million ($3.9 per weighted average diluted share) for the nine-month
periods ended September 30, 2009 and 2008, respectively and the
amortization of stock based compensation expense of $14.3 million ($0.22
per weighted average diluted share) and $6.7 million ($0.19 per weighted
average diluted share), respectively.
The effect of the accounting changes discussed above in the nine-month
period ended September 30, 2009 was a decrease in net income of
approximately $2.4 million or $0.04 per weighted average diluted share due
to the change in dry-dock and special survey policy and $4.3 million or
$0.07 per weighted average diluted share due to the change in the
accounting for the convertible notes.
Revenues for the period amounted to $570.4 million as compared to $506.9
million for the same period in 2008, an increase of approximately 12.5%.
Included in revenues for the nine-month periods ended September 30, 2009
and 2008 are $280.9 million and $155.2 million, respectively of non-cash
revenues relating to the amortization of unfavorable time charters that
were fair valued upon acquiring Quintana.
An average of 47.3 vessels were operated during the nine-month period ended
September 30, 2009, earning a blended average time charter equivalent (TCE)
rate of $21,676 per day compared to $34,913 per day for the nine-months
period ended September 30, 2008 earned by an average of 35.8 vessels.
Please refer to a subsequent section of this Press Release for a
calculation of the TCE.
Adjusted EBITDA for the period was $169.7 million compared to $253.1
million for the respective period of 2008, a decrease of approximately
33.0%. Please refer to a subsequent section of this Press Release for a
reconciliation of adjusted EBITDA to Net Income.
Conference Call Details:
Tomorrow, November 4, 2009 at 10:00 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 November
11, 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 Statements and Other Financial Data Follow -
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
FOR THE THREE-MONTH PERIODS ENDED SEPTEMBER 30, 2008
(as adjusted) AND 2009
(In thousands of U.S. Dollars, except for share and per share data)
Three-Month period
ended September 30,
2008
(as adjusted) 2009
---------- ----------
REVENUES:
Voyage revenues 149,567 97,867
Time Charter fair value amortization 81,853 76,425
Revenue from managing related party vessels 233 105
---------- ----------
Revenue from operations 231,653 174,397
---------- ----------
EXPENSES:
Voyage expenses 7,051 4,469
Charter hire expense 8,275 8,275
Charter hire amortization 10,066 10,068
Commissions to a related party 1,139 577
Vessel operating expenses 19,581 20,671
Depreciation expense 30,795 31,070
Dry-docking and special survey cost 2,205 1,825
General and administrative expenses 10,331 13,952
---------- ----------
89,443 90,907
---------- ----------
Income from operations 142,210 83,490
---------- ----------
OTHER INCOME (EXPENSES):
Interest and finance costs (18,383) (12,418)
Interest income 2,028 281
Interest rate swap loss (10,856) (9,418)
Foreign exchange gain (loss) 125 (194)
Other, net 2,377 360
---------- ----------
Total other income (expenses), net (24,709) (21,389)
---------- ----------
Net income before taxes and income from investment
in affiliate 117,501 62,101
---------- ----------
US Source Income taxes (105) (162)
---------- ----------
Net income before income from investment in
affiliate 117,396 61,939
---------- ----------
Income from Investment in affiliate 117 -
---------- ----------
Net income 117,513 61,939
---------- ----------
Plus: Loss assumed by the non controlling interests 48 37
---------- ----------
Net income attributable to Excel Maritime Carriers
Ltd. 117,561 61,976
========== ==========
Earnings per common share, basic $ 2.68 $ 0.83
========== ==========
Weighted average number of shares, basic 43,812,129 75,107,733
========== ==========
Earnings per common share, diluted $ 2.66 $ 0.79
========== ==========
Weighted average number of shares, diluted 44,236,338 78,863,299
========== ==========
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2008 (as adjusted) AND 2009
(In thousands of U.S. Dollars, except for share and per share data)
Nine-month period
ended September 30,
2008
(as adjusted) 2009
---------- ----------
REVENUES:
Voyage revenues 351,058 289,112
Time Charter fair value amortization 155,151 280,871
Revenue from managing related party vessels 698 382
---------- ----------
Revenue from operations 506,907 570,365
---------- ----------
EXPENSES:
Voyage expenses 17,195 14,346
Charter hire expense 15,111 24,556
Charter hire amortization 18,381 29,884
Commissions to a related party 2,961 1,602
Vessel operating expenses 47,708 62,881
Depreciation expense 68,436 92,336
Dry-docking and special survey cost 9,529 9,757
General and administrative expenses 25,163 30,817
---------- ----------
204,484 266,179
---------- ----------
Gain on sale of vessel - 61
Income from operations 302,423 304,247
---------- ----------
OTHER INCOME (EXPENSES):
Interest and finance costs (41,859) (45,092)
Interest income 6,653 523
Interest rate swap gain (loss) 6,775 (1,233)
Foreign exchange loss (83) (231)
Other, net 2,244 183
---------- ----------
Total other income (expenses), net (26,270) (45,850)
---------- ----------
Net income before taxes and income from investment
in affiliate 276,153 258,397
---------- ----------
US Source Income taxes (594) (515)
---------- ----------
Net income before income from investment in
affiliate 275,559 257,882
---------- ----------
Income from Investment in affiliate 521 -
---------- ----------
Net income 276,080 257,882
---------- ----------
Plus: Loss assumed by the non controlling interests 99 124
---------- ----------
Net income attributable to Excel Maritime Carriers
Ltd. 276,179 258,006
========== ==========
Earnings per common share, basic $ 7.97 $ 4.03
========== ==========
Weighted average number of shares, basic 34,658,716 64,083,909
========== ==========
Earnings per common share, diluted $ 7.97 $ 3.91
========== ==========
Weighted average number of shares, diluted 34,658,716 66,031,742
========== ==========
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2008 (as adjusted) AND SEPTEMBER 30, 2009 (unaudited)
(In thousands of U.S. Dollars)
December 31,
2008 September
ASSETS (as adjusted) 30, 2009
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents 109,792 94,597
Restricted cash 53 53,001
Accounts receivable 10,247 6,246
Other current assets 6,958 6,690
------------ ------------
Total current assets 127,050 160,534
------------ ------------
FIXED ASSETS:
Vessels, net 2,786,717 2,691,129
Advances for vessels under construction 106,898 115,845
Office furniture and equipment, net 1,722 1,514
------------ ------------
Total fixed assets, net 2,895,337 2,808,488
------------ ------------
OTHER NON CURRENT ASSETS:
Time charters acquired, net 264,263 234,379
Restricted cash 24,947 24,956
Investment in affiliate 5,212 -
------------ ------------
Total assets 3,316,809 3,228,357
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt, net of
deferred financing fees 220,410 158,239
Accounts payable 6,440 6,487
Other current liabilities 47,934 48,602
Current portion of financial instruments 40,119 40,362
------------ ------------
Total current liabilities 314,903 253,690
------------ ------------
Long-term debt, net of current portion and net
of deferred financing fees 1,256,707 1,164,232
Time charters acquired, net 650,781 369,910
Financial instruments 41,020 21,603
------------ ------------
Total liabilities 2,263,411 1,809,435
------------ ------------
Commitments and contingencies - -
------------ ------------
STOCKHOLDERS' EQUITY:
Preferred stock - -
Common stock 461 798
Additional paid-in capital 944,207 1,048,369
Other Comprehensive Loss (74) (74)
Retained earnings 94,063 352,069
Less: Treasury stock (189) (189)
------------ ------------
Excel Maritime Carriers Ltd. Stockholders'
equity 1,038,468 1,400,973
------------ ------------
Non-controlling interests 14,930 17,949
------------ ------------
Total Stockholders' Equity 1,053,398 1,418,922
------------ ------------
Total liabilities and stockholders' equity 3,316,809 3,228,357
============ ============
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2008
(as adjusted) AND 2009
(In thousands of U.S. Dollars)
Nine-month period
ended September 30,
2008
(as adjusted) 2009
--------- ---------
Cash Flows from Operating Activities:
Net income 276,080 257,882
Adjustments to reconcile net income to net cash
provided by operating activities (69,199) (156,086)
Changes in operating assets and liabilities:
Operating assets (9,158) 4,269
Operating liabilities 21,254 715
--------- ---------
Net Cash provided by Operating Activities 218,977 106,780
--------- ---------
Cash Flows from Investing Activities:
Acquisition of Quintana, net of cash acquired (692,420) -
Advances for vessels under construction (37,270) (8,947)
Additions to vessel cost (342) (113)
Additions to office furniture and equipment (358) (101)
Proceeds received from Oceanaut's liquidation - 5,212
Proceeds from sale of vessel - 3,735
--------- ---------
Net cash used in Investing Activities (730,390) (214)
--------- ---------
Cash Flows from Financing Activities:
Increase in restricted cash (105,226) (52,957)
Proceeds from long-term debt 1,405,642 5,067
Repayment of long-term debt (881,395) (165,256)
Payment of financing costs (15,290) (1,938)
Share capital issuance costs (131) (420)
Issuance of common stock - 90,600
Non controlling interests 396 3,143
Dividends paid (30,549) -
--------- ---------
Net cash provided by (used in) Financing Activities 373,447 (121,761)
--------- ---------
Net decrease in cash and cash equivalents (137,966) (15,195)
Cash and cash equivalents at beginning of period 243,672 109,792
--------- ---------
Cash and cash equivalents at end of the period 105,706 94,597
========= =========
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Interest payments 19,285 45,320
U.S. Source income taxes 638 625
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 Nine-month period
ended September 30, ended September 30,
2008 2009 2008 2009
Net income 117,561 61,976 276,179 258,006
Interest and finance costs, net
(1) 20,550 19,728 42,788 64,976
Depreciation 30,795 31,070 68,436 92,336
Dry-dock and special survey
cost 2,205 1,825 9,529 9,757
Unrealized swap gain 6,661 1,827 (14,357) (19,174)
Amortization of T/C fair values
(2) (71,787) (66,357) (136,770) (250,987)
Stock based compensation 3,962 8,915 6,674 14,319
Gain on sale of vessel - - - (61)
Taxes 105 162 594 515
--------- --------- --------- ---------
Adjusted EBITDA 110,052 59,146 253,073 169,687
========= ========= ========= =========
(1) Includes swap interest paid and received
(2) Analysis:
Three-month period Nine-month period
ended September 30, ended September 30,
2008 2009 2008 2009
Non-cash amortization of
unfavorable time charters
in revenue (81,853) (76,425) (155,151) (229,397)
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 10,066 10,068 18,381 29,884
---------- ---------- ---------- ----------
(71,787) (66,357) (136,770) (250,987)
========== ========== ========== ==========
Reconciliation of Net Income to Adjusted Net Income
(all amounts in thousands of U.S. Dollars)
Three-month period Nine-month period
ended September 30, ended September 30,
2008 2009 2008 2009
Net income 117,561 61,976 276,179 258,006
Unrealized swap loss (gain) 6,661 1,827 (14,357) (19,174)
Gain on sale of vessel - - - (61)
---------- ---------- --------- ---------
Adjusted Net income 124,222 63,803 261,822 238,771
========== ========== ========= =========
Reconciliation of Earnings per Share (Diluted) to Adjusted Earnings per
Share (Diluted)
(all amounts in U.S. Dollars)
Three-month Nine-month
period period
ended ended
September 30, September 30,
2008 2009 2008 2009
Earnings per Share (Diluted) $ 2.66 $ 0.79 $ 7.97 $ 3.91
Unrealized swap loss (gain) 0.15 0.02 (0.42) (0.29)
Gain on sale of vessel - - - -
------- ------- ------ ------
Adjusted Earnings per Share (Diluted) $ 2.81 $ 0.81 $ 7.55 $ 3.62
======= ======= ====== ======
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 nine months ended September 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)
CAPESIZE FLEET PANAMAX FLEET
Three-month period ended September
30,
2008 2009 2008 2009
------- ------- ------- -------
Total calendar days 368 460 3,220 3,220
Available days under period charter 368 460 2,787 2,248
Available days under spot/short
duration charter - - 366 884
Utilization 100.0% 100.0% 97.9% 97.3%
Time charter equivalent per ship per
day-period 52,409 38,063 25,894 22,015
Time charter equivalent per ship per
day-spot - - 66,274 18,700
Time charter equivalent per ship per
day-weighted average 52,409 38,063 30,581 21,079
Net daily revenue per ship per day 52,409 38,063 29,954 20,509
Vessel operating expenses per ship per
day (5,033) (5,041) (4,499) (4,701)
Net Operating cash flows per ship per
day before G&A expenses 47,376 33,022 25,455 15,808
------- ------- ------- -------
HANDYSIZE FLEET TOTAL FLEET
Three-month period ended September
30,
2008 2009 2008 2009
------- ------- ------- -------
Total calendar days 736 644 4,324 4,324
Available days under period charter 92 92 3,247 2,800
Available days under spot/short
duration charter 569 552 935 1,436
Utilization 89.8% 100.0% 96.7% 98.0%
Time charter equivalent per ship per
day-period 28,200 10,429 28,964 24,270
Time charter equivalent per ship per
day-spot 40,523 15,072 50,612 17,305
Time charter equivalent per ship per
day-weighted average 38,808 14,408 33,806 21,912
Net daily revenue per ship per day 34,834 14,408 32,696 21,467
Vessel operating expenses per ship per
day (4,378) (4,991) (4,528) (4,780)
Net Operating cash flows per ship per
day before G&A expenses 30,456 9,417 28,168 16,687
------- ------- ------- -------
Vessel Employment
(In U.S. Dollars per day, unless otherwise stated)
CAPESIZE FLEET PANAMAX FLEET
Nine-month period ended September
30,
2008 2009 2008 2009
------- ------- ------- -------
Total calendar days 672 1,365 6,940 9,555
Available days under period charter 642 1,343 5,973 6,875
Available days under spot/short
duration charter 30 - 798 2,495
Utilization 100.0% 98.4% 97.6% 98%
Time charter equivalent per ship per
day-period 50,188 41,142 26,651 23,407
Time charter equivalent per ship per
day-spot 118,107 - 64,266 14,009
Time charter equivalent per ship per
day-weighted average 53,220 41,142 31,084 20,905
Net daily revenue per ship per day 53,197 40,491 30,325 20,500
Vessel operating expenses per ship per
day (4,785) (5,297) (4,869) (4,774)
Net Operating cash flows per ship per
day before G&A expenses 48,412 35,194 25,456 15,726
------- ------- ------- -------
HANDYSIZE FLEET TOTAL FLEET
Nine-month period ended September
30,
2008 2009 2008 2009
------- ------- ------- -------
Total calendar days 2,192 1,985 9,804 12,905
Available days under period charter 516 368 7,131 8,586
Available days under spot/short
duration charter 1,519 1,521 2,347 4,016
Utilization 92.8% 95.2% 96.7% 97.7%
Time charter equivalent per ship per
day-period 35,303 15,032 29,397 25,823
Time charter equivalent per ship per
day-spot 43,754 10,837 51,669 12,807
Time charter equivalent per ship per
day-weighted average 41,611 11,655 34,913 21,676
Net daily revenue per ship per day 38,640 11,089 33,752 21,167
Vessel operating expenses per ship per
day (4,871) (5,055) (4,866) (4,873)
Net Operating cash flows per ship per
day before G&A expenses 33,769 6,034 28,886 16,294
------- ------- ------- -------
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 nine-month
period ended period ended
September 30, September 30,
---------------- ----------------
2008 2009 2008 2009
------- ------- ------- -------
Voyage revenues 149,567 97,867 351,058 289,112
Voyage expenses (8,190) (5,046) (20,156) (15,948)
------- ------- ------- -------
Time Charter Equivalent 141,377 92,821 330,902 273,164
======= ======= ======= =======
Total available days 4,182 4,236 9,478 12,602
Daily Time charter equivalent 33,806 21,912 34,913 21,676
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) 4Q'09 1Q'10 2Q'10 3Q'10 Total
Amortization of unfavorable time
charters (1) 72.3 70.7 69.6 58.5 271.1
Amortization of favorable time
charters (2) 10.1 9.9 10.0 10.1 40.1
(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 November 2, 2009:
Year Charter Average
Vessel Name Dwt Built Type Daily rate Expiration Date
Iron Miner 177,931 2007 Period $ 42,105 February 2012
$ 49,000
Kirmar 164,218 2001 Period (net) May 2013
Iron Beauty 164,218 2001 Period $ 36,500 October 2010
Lowlands
Beilun 170,162 1999 Period $ 36,000 May 2010
Sandra 180,274 2008 Period $ 32,000 September 2010 (1)
Total
Capesize 856,803
Iron Manolis 82,269 2007 Period $ 22,000 December 2010
Iron Brooke 82,594 2007 Period $ 21,000 December 2010
Iron Lindrew 82,598 2007 Period $ 21,000 December 2010
Coal Hunter 82,298 2006 Period $ 22,000 December 2010
Pascha 82,574 2006 Period $ 21,000 December 2010
Coal Gypsy 82,221 2006 Period $ 22,000 December 2010
Iron Anne 82,220 2006 Period $ 22,000 December 2010
Iron
Vassilis 82,257 2006 Period $ 22,000 December 2010
Iron Bill 82,187 2006 Period $ 22,000 December 2010
Santa
Barbara 82,266 2006 Period $ 22,000 December 2010
Ore Hansa 82,209 2006 Period $ 22,000 December 2010
Iron Kalypso 82,224 2006 Period $ 22,000 December 2010
Iron Fuzeyya 82,209 2006 Period $ 22,000 December 2010
Iron Bradyn 82,769 2005 Period $ 22,000 December 2010
Total
Kamsarmax 1,152,895
Grain
Harvester 76,417 2004 Period $ 20,000 December 2010
Grain
Express 76,466 2004 Period $ 22,000 December 2010
Iron Knight 76,429 2004 Period $ 22,000 December 2010
Coal Pride 72,493 1999 Spot
Isminaki 74,577 1998 Period $ 24,000 March 2010
Angela Star 73,798 1998 Spot
Elinakos 73,751 1997 Spot
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 October 2010
Fearless I
(A) 73,427 1997 Period $ 22,250 March 2010
Barbara (A) 73,307 1997 Period $ 23,000 July 2010
Linda Leah
(A) 73,317 1997 Spot
King Coal
(A) 72,873 1997 Period $ 56,000 July 2011
Coal Glory
(A) 73,670 1995 Period BPI AV 4TC (2) December 2009
Powerful 70,083 1994 Period $ 20,500 December 2009
First
Endeavour 69,111 1994 Spot
Rodon 73,656 1993 Spot
Birthday 71,504 1993 Period $ 16,500 July 2010
Renuar 70,155 1993 Spot
Fortezza 69,634 1993 Spot
Total
Panamax 1,532,047
July M 55,567 2005 Spot
Mairouli 53,206 2005 Period $ 11,000 February 2010
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 9.4 Yrs
---------- -------- -------- ------------- -----------------
Estimated
Fleet to be delivered Type Dwt delivery (B)
------------- ------------- -------------
Christine (D) Capesize 180,000 May 2010
Hope (E) Capesize 181,000 November 2010
Total fleet to be delivered 361,000
------------- ------------- -------------
Estimated
delivery
Fleet to be delivered (C) Type Dwt (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.
(2) The BPI AV4 Time Charter Rate is the Baltic Panamax Index Average of
four specific time charter routes as published daily by the Baltic Exchange
in London.
(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
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
