SOURCE: Excel Maritime

November 03, 2009 16:05 ET

Excel Maritime Reports Results for the Third Quarter and Nine-Month Period Ended September 30, 2009

ATHENS, GREECE--(Marketwire - November 3, 2009) - 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

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