-- Initiated strategic review process to enhance shareholder value;
-- Increased net revenues by approximately 156% to $64.0 million from $
25.0 million in the third quarter of 2006;
-- Increased Adjusted Net Income by approximately 262% to $22.1 million
from $6.1 million in the third quarter of 2006;
-- Increased Adjusted EBITDA by approximately 163% to $46.6 million from
$17.7 million in the third quarter of 2006;
-- Completed sale-leaseback transactions for our 7 oldest Panamax
vessels, receiving net proceeds of approximately $250 million; and
-- Paid down $185 million of debt with part of the net proceeds from the
sale-leaseback.
Third Quarter 2007 Results:
For the third quarter of 2007, Quintana reported net income of $7.6
million, or $0.13 per diluted share, compared to a net loss of $7.6
million, or $0.19 per diluted share, in the third quarter of 2006. This
includes a non-cash unrealized swap loss of $14.5 million on our
interest-rate swap. Before this loss, our net income was $22.1 million, or
$0.39 per diluted share, an increase of approximately 144% over the $0.16
per diluted share in the third quarter last year. Net revenues for the
third quarter were $64.0 million compared to $25.0 million in the third
quarter of 2006.
Adjusted EBITDA for the third quarter of 2007 was $46.6 million, an
increase of $28.9 million, or approximately 163%, over Adjusted EBITDA of
$17.7 million in the third quarter of 2006. During the third quarter of
2007, Quintana operated an average of 29 vessels, earning an average time
charter equivalent (TCE) rate of $25,517 per ship per day. During the
corresponding quarter in 2006, the Company operated an average of 13.4
vessels, earning an average TCE rate of $21,439 per day.
Stamatis Molaris, President and Chief Executive Officer of Quintana
Maritime, commented, "Before the non-cash interest-rate swap loss, the
third quarter was the most profitable quarter since the Company's
inception. Our Adjusted Net Income almost tripled over the same quarter
last year due to the strong growth of our fleet secured last year. We are
very pleased to see the impact of the Metrobulk acquisition paying off for
our shareholders. We believe our Company will continue to strongly benefit
from our secured growth as well as from charter renewals over the next six
to nine months."
Nine Months Ended September 30, 2007:
For the nine-month period ended September 30, 2007, Quintana reported net
income of $49.5 million, or $0.88 per diluted share, compared to net income
of $2.0 million, or $0.07 per diluted share, in the first nine months of
2006. This includes a non-cash unrealized swap loss of $5.6 million on our
interest-rate swap. Before this loss, net income was $55.1 million, or
$0.98 per diluted share, an increase of approximately 81% over $0.54 per
diluted share for the corresponding period last year. Net revenues for the
first nine months of 2007 were $171.5 million, compared to $66.3 million a
year ago.
Adjusted EBITDA for the nine month period in 2007 was $133.6 million, an
increase of $87.1 million, or 187%, over Adjusted EBITDA of $46.5 million
in the corresponding period in 2006. During the nine month period, Quintana
operated an average of 27.5 vessels, earning an average TCE rate of $24,479
per ship per day. During the corresponding period in 2006, the Company
operated an average of 11.4 vessels, earning an average TCE rate of $22,530
per day.
Strategic Review
The Company announced on October 16, 2007 that its Board of Directors,
after a series of discussions, has decided to evaluate strategic
alternatives in order to enhance shareholder value. The Board has retained
Citi and Dahlman Rose to advise it during its deliberations.
Time Charter Renewals and Coverage:
A 1997 built Panamax ship, Barbara, will commence a charter with Cargill in
early November for a period between 5 to 7 months at a net daily rate of
approximately $79,000 per day.
The Company has now secured 100% time charter coverage for the remaining
part of 2007, and approximately 90%, 80% and 71% for 2008, 2009 and 2010
respectively. As a result, the projected net revenues under fixed time
charters for those years will be approximately $238 million, $202 million
and $195 million respectively, based on projected fixed time charter
revenues and assuming charterers redeliver vessels at the latest date
possible under the charters.
Mr. Molaris commented, "We believe that the current size of the fleet
together with our significant charter coverage will allow us to optimize
our chartering practices in the future, including more aggressive trading
of vessels in the spot market or under short term period charters if we
determine that market conditions are appropriate. We believe this strategy
would allow us to generate additional upside potential during a buoyant
market without risking significant revenues in case of a market downturn."
Dividend:
The Board of Directors of Quintana has declared a dividend of $0.31 per
share, payable on November 23, 2007 to all shareholders of record as of
November 12, 2007. The dividend payment of $0.31 per share reflects the
Board of Directors' guidance of a minimum annualized payment of $1.17 per
share for 2007.
Paul J. Cornell, Quintana's Chief Financial Officer, commented, "We are
pleased to have declared our tenth consecutive quarterly dividend. This
demonstrates a consistent track record of dividend payments, while we
continue to grow the company's fleet. We remain committed to continue
rewarding our shareholders with a consistently growing dividend."
Sale-Leaseback:
As previously announced, Quintana entered into a sale-leaseback of seven of
its oldest Panamax vessels. The aggregate net proceeds to Quintana were
approximately $250 million. Under the leaseback arrangement, Quintana has
agreed to lease the vessels back from the buyers for a period of 8 years
under a bareboat arrangement. The average daily bareboat rate will be
approximately $12,700 per day per vessel for the 8 year period. Quintana
retains commercial and technical control of the vessels and continues to
earn charter hire on the time charters on the vessels.
Quintana used $185 million from the proceeds of the transaction to prepay
debt outstanding under its revolving credit facility. The remaining
proceeds from the transaction of approximately $65 million in cash have
been retained by the Company.
The transaction has resulted in a book loss of approximately $3.3 million,
mainly due to the payment of $3.8 million in arrangement fees, which will
be amortized over the 8-year terms of the bareboat charters. The book cost
of the vessels approximated the net selling price.
Mr. Molaris stated, "The sale-leaseback successfully reduced the average
age of our fully owned fleet and mitigated the residual value risk from the
Company's pre-2000 built fleet by exploiting the current strong market
conditions. The transaction has strengthened our balance sheet and
liquidity capability without materially diluting our earnings or our
distributable cash flow capability. We believe that the combination of our
decreasing leverage and the significant time charter coverage provides the
Company with the financial flexibility to take advantage of opportunities
as they arise and to continue to pay out dividends to our shareholders."
Warrants:
In the first nine months of 2007, 4,620,524 of the 8,182,232 originally
issued warrants were exercised, and the Company received net proceeds of
$35.9 million. To date, 5,945,112 warrants have been exercised, and the
Company has received net proceeds of approximately $45.5 million from the
exercise. As of September 30, 2007, 2,237,120 warrants remained
outstanding. If the remaining warrants were exercised, the Company would
expect to receive additional gross proceeds of approximately $17.9 million.
Management of Interest-Rate Risk:
Our revolving credit facility bears interest at a floating rate. Because we
determined that fixing an interest rate would be beneficial to the Company
and its shareholders, the Company entered into an interest rate swap
agreement, effective from July 1, 2006 through December 31, 2010, which
effectively fixes interest payments under our revolving credit facility at
5.985%, inclusive of the spread.
Because the swap does not qualify for hedge accounting, the Company is
required to mark to market the fair value of the hedge at the end of every
reporting period, which may result in significant fluctuations from period
to period. The non-cash liability of $15.4 million at September 30, 2007,
after a non-cash loss of $14.5 million was recorded during the third
quarter of 2007, reflects the fair value of the hedge at the end of the
period. This charge was primarily due to the fact that the variable-rate
interest portion of the swap is tied to forward LIBOR rates, which
decreased during the third quarter of 2007.
Conference Call Cancellation:
In light of the Company's recent announcement regarding its evaluation of
strategic alternatives, management will not conduct a conference call
discussing the Company's quarterly results.
--Financial Statements and Other Financial Data follows--
QUINTANA MARITIME LIMITED
CONSOLIDATED BALANCE SHEETS
(All amounts expressed in thousands of U.S. Dollars except share data)
(Unaudited)
September 30, December 31,
2007 2006
ASSETS
Current assets:
Cash and cash equivalents $ 99,801 $ 21,335
Inventories 2,810 1,649
Due from charterers, net 2,142 1,159
Other receivables 1,270 1,196
Prepaid expenses and other current
assets 4,630 986
------------- --------------
Total current assets 110,653 26,325
Property and equipment:
Vessels, net of accumulated depreciation
of $79,728 and $40,899 1,031,520 987,623
Advances for acquisition of vessels /
newbuildings 53,071 26,310
Other fixed assets, net of accumulated
depreciation of $497 and $265 792 429
------------- --------------
Total property and equipment 1,085,383 1,014,362
Deferred charges:
Financing costs, net of accumulated
amortization of $2,963 and $2,169 4,911 4,588
Time charter premium, net of accumulated
amortization of $4,134 and $2,551 5,366 6,949
Dry-docking costs, net of accumulated
amortization of $2,400 and $970 8,617 5,216
Loss on sale-leaseback, net of
accumulated amortization of $80 and $0 3,228 --
------------- --------------
Total assets $ 1,218,158 $ 1,057,440
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 68,968 $ 47,000
Accounts payable 3,194 5,369
Sundry liabilities and accruals 15,226 2,776
Deferred income 11,433 2,777
------------- --------------
Total current liabilities 98,821 57,922
Long-term debt, net of current portion 626,350 564,960
Interest-rate swap loss 15,448 9,840
------------- --------------
Total liabilities $ 740,619 $ 632,722
Commitments and contingencies
Minority interests in equity of consolidated
joint ventures 8,680 --
------------- --------------
Stockholders' equity:
Common stock at $0.01 par value,
100,000,000 shares authorized,
55,113,766 and 50,026,533 shares
outstanding 552 501
Additional paid-in capital 483,071 442,776
Common stock to be issued for warrants
exercised -- 1,438
Accumulated deficit (14,764) (19,997 )
------------- --------------
Total stockholders' equity 468,859 424,718
------------- --------------
Total liabilities and stockholders'
equity $ 1,218,158 $ 1,057,440
============= ==============
QUINTANA MARITIME LIMITED
CONSOLIDATED INCOME STATEMENTS
(All amounts expressed in thousands of U.S. Dollars
except share and per share data)
(Unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
---------------------- ----------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Revenues:
Time charter revenue $ 66,101 $ 24,965 $ 178,839 $ 64,857
Voyage revenue 955 1,243 955 4,474
Commissions (3,065) (1,175) (8,308) (3,015)
---------- ---------- ---------- ----------
Net revenue 63,991 25,033 171,486 66,316
Expenses:
Vessel operating
expenses 9,555 4,057 26,027 11,380
Voyage expenses 40 1,448 40 4,068
Charter hire expense 6,277 -- 6,277 --
General and
administrative
expenses 3,879 2,706 11,749 7,197
Depreciation and
amortization 12,574 7,411 40,491 19,600
---------- ---------- ---------- ----------
Total expenses 32,325 15,622 84,584 42,245
---------- ---------- ---------- ----------
Operating income 31,666 9,411 86,902 24,071
Other (expenses) / income:
Interest expense (10,957) (3,386) (34,545) (8,350)
Interest income 935 441 2,048 570
Finance costs (293) (1,946) (794) (2,073)
Interest-rate swap loss (14,092) (11,892) (4,836) (11,892)
Foreign exchange
gains/(losses) and
other, net 333 (217) 678 (373)
---------- ---------- ---------- ----------
Total other expenses (24,074) (17,000) (37,449) (22,118)
Minority interest in
net loss of
consolidated joint
ventures 43 -- 71 --
---------- ---------- ---------- ----------
Net income / (loss) $ 7,635 $ (7,589) $ 49,524 $ 1,953
========== ========== ========== ==========
Weighted average shares
outstanding:
Basic 55,002,903 37,569,368 54,218,091 28,153,771
Diluted 56,927,051 38,922,043 56,336,389 28,928,204
Per share amounts:
Basic earnings per
share $ 0.14 $ (0.20) $ 0.91 $ 0.07
Diluted earnings per
share $ 0.13 $ (0.19) $ 0.88 $ 0.07
Cash dividends declared
per ordinary share $ 0.31 $ 0.21 $ 0.79 $ 0.28
QUINTANA MARITIME LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts expressed in thousands of U.S. Dollars)
(Unaudited)
For the Nine Months
Ended September 30,
-----------------------------
2007 2006
------------- -------------
Cash flows from operating activities:
Net income $ 49,524 $ 1,953
Adjustments to reconcile net income to
net cash from operating activities:
Depreciation and amortization 40,491 19,600
Amortization of deferred financing
costs 794 2,073
Amortization of time charter fair
value 1,583 1,583
Amortization of loss on sale-leaseback 80 --
Stock-based compensation 3,020 1,626
Minority interest share in net loss of
consolidated joint ventures (71) --
Unrealized interest-rate swap loss 5,610 11,892
Changes in assets and liabilities:
Increase in inventories (1,161) (933)
Increase in due from charterers, net (983) (1,291)
Increase in other receivables (74) (313)
Increase in prepaid expenses and other
current assets (3,644) (110)
(Decrease) / increase in accounts
payable (2,175) 1,518
Increase / (decrease) in sundry
liabilities and accruals 11,536 (1,006)
Increase in deferred income 8,656 1,100
Dry-docking costs paid (3,917) (1,059)
------------- -------------
Net cash from operating activities $ 109,269 $ 36,633
------------- -------------
Cash flows from investing activities:
Vessel acquisitions (309,138) (398,147)
Advances for acquisitions of vessels /
newbuildings (53,071) (34,000)
Vessel disposals, net of sale costs 249,413 --
Purchases of other fixed assets (594) (183)
------------- -------------
Net cash used in investing
activities $ (113,390) $ (432,330)
------------- -------------
Cash flows from financing activities:
Proceeds from long-term debt 282,858 459,500
Repayment of long-term debt (199,500) (210,000)
Payment of financing costs (1,117) (4,784)
Proceeds from warrants exercised, net of
issuance costs 35,886 --
Contributions from minority interest
holders of consolidated joint ventures 8,751 --
Proceeds from issue of preferred stock, net -- 190,938
Issuance costs of preferred stock (7,672)
Dividends paid (44,291) (21,729)
------------- -------------
Net cash from financing activities $ 82,587 $ 406,253
------------- -------------
Net increase in cash and cash equivalents 78,466 10,556
Cash and cash equivalents at beginning of
period 21,335 4,259
------------- -------------
Cash and cash equivalents at end of the
period $ 99,801 $ 14,815
============= =============
Supplemental disclosure of cash flow
information:
Cash paid during the period for interest $ 25,401 $ 10,797
Capitalized interest on newbuildings $ 1,320 --
============= =============
Non-cash investing and financing
activities:
Conversion of 12% Mandatorily
Convertible Preference Stock -- $ 190,938
============= =============
OTHER FINANCIAL DATA
Quintana Maritime Limited
Reconciliation of Net Income to Adjusted EBITDA
(All amounts expressed in thousands of U.S. Dollars)
For the three months ended For the nine months ended
September 30, September 30,
--------------------------- ---------------------------
2007 2006 2007 2006
------------- ------------ ------------- -------------
Net Income / (Loss) $ 7,635 $ (7,589) $ 49,524 $ 1,953
------------- ------------ ------------- -------------
Interest and
finance costs, net 10,315 4,891 33,291 9,853
Depreciation and
amortization 12,574 7,412 40,491 19,600
Unrealized Swap
Loss 14,484 11,892 5,610 11,892
Amortization of
loss on
sale-leaseback 80 - 80 -
Amortization of
time charter fair
value 528 528 1,583 1,583
Stock-based
compensation 1,027 598 3,020 1,626
============= ============ ============= =============
Adjusted EBITDA $ 46,643 $ 17,732 $ 133,599 $ 46,507
============= ============ ============= =============
Quintana Maritime Limited
Reconciliation of Net Income to Adjusted Net Income
(All amounts expressed in thousands of U.S. Dollars)
For the three months ended For the nine months ended
September 30, September 30,
--------------------------- ---------------------------
2007 2006 2007 2006
------------- ------------ ------------- -------------
Net Income / (Loss) $ 7,635 $ (7,589) $ 49,524 $ 1,953
Unrealized Swap
Loss 14,484 11,892 5,610 11,892
Write-off of
unamortized
financing costs - 1,833 - 1,833
------------- ------------ ------------- -------------
Adjusted Net Income $ 22,119 $ 6,136 $ 55,134 $ 15,678
============= ============ ============= =============
Quintana Maritime Limited
Reconciliation of Earnings Per Share (Diluted) to
Adjusted Earnings Per Share (Diluted)
(All amounts expressed in U.S. Dollars)
For the three months ended For the nine months ended
September 30, September 30,
--------------------------- ---------------------------
2007 2006 2007 2006
------------- ------------ ------------- -------------
Net Income / (Loss) $ 0.13 $ (0.19) $ 0.88 $ 0.07
Unrealized Swap
Loss $ 0.26 0.30 0.10 0.41
Write-off of
unamortized
financing costs - 0.05 - 0.06
------------- ------------ ------------- -------------
Adjusted earnings
per share
(diluted) $ 0.39 $ 0.16 $ 0.98 $ 0.54
============= ============ ============= =============
Disclosure of Non-GAAP Financial Measures
Adjusted EBITDA represents net income plus interest and finance costs,
including capitalized interest, plus depreciation and amortization and
income taxes, if any, plus deferred stock-based compensation, and
amortization of time charter fair value and unrealized interest-rate swap
gain or loss, which are non-cash items. Adjusted EBITDA is included because
it is used by certain investors to measure a company's financial
performance and by the Company as a financial target. Adjusted EBITDA is a
"non-GAAP financial measure" and should not be considered a substitute for
net income, cash flow from operating activities and other operations or
cash flow statement data prepared in accordance with accounting principles
generally accepted in the United States or as a measure of profitability or
liquidity. Adjusted EBITDA is presented to provide additional information
with respect to the Company's ability to satisfy its obligations including
debt service, capital expenditures, working capital requirements and
determination of dividends. While Adjusted EBITDA is frequently used as a
measure of operating results and the ability to meet debt service
requirements, the definition of Adjusted EBITDA used here may not be
comparable to that used by other companies due to differences in methods of
calculation.
Adjusted Net Income represents net income plus unrealized interest-rate
swap gain or loss, which is a non-cash item, and other significant one-off
expenses that were incurred in the periods presented. 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
calculation in this period in order to allow comparability between the
Company's performance in the reported periods and its performance in prior
periods.
ABOUT QUINTANA MARITIME LIMITED
Quintana Maritime Limited, based in Greece, is an international provider of
dry bulk cargo marine transportation services. As of today, the company
owns a fleet of 22 vessels and, together with 7 Panamax vessels under
bareboat charters, operates 29 vessels, including 14 Kamsarmax bulkers, 11
Panamax vessels and 4 Capesize vessels with a total carrying capacity of
2,644,043 dwt. The dwt weighted average age of the vessels, excluding the
seven vessels on bareboat charters, is 3.0 years. In addition, Quintana has
ordered 8 Capesize newbuilding vessels, one of which will be wholly owned
and the remaining seven of which will be partially owned through joint
ventures. Once all acquisitions and newbuilding orders are completed and
assuming no further vessel disposals, Quintana will operate a fleet of 37
dry bulk vessels, including 12 Capesize vessels, 11 Panamax vessels and 14
Kamsarmax vessels, with a total capacity of 4,086,043 dwt. The dwt weighted
average age of the whole fleet, including the Capesize vessels on order and
excluding the seven vessels sold and leased back, is currently 1.8 years.
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.
Such statements include comments regarding expected revenues and time
charters. 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 changes in the demand for
dry bulk vessels, competitive factors in the market in which the Company
operates; risks associated with operations outside the United States; and
other factors listed from time to time in the Company's filings with the
Securities and Exchange Commission. The Company expressly disclaims any
obligations or undertaking to release publicly any updates or revisions to
any forward-looking statements contained herein to reflect any change in
the Company's expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is based.
APPENDIX
The following key indicators highlight the Company's financial and
operating performance during the 3 months ended September 30, 2007 and 2006
and the 9 months ended September 30, 2007 and 2006:
Three Months Ended Three Months Ended
Sep 30, 2007 Sep 30, 2006
------------ ------------
PANAMAX CAPESIZE TOTAL PANAMAX CAPESIZE TOTAL
------- -------- ----- ------- -------- -----
Total Ownership days 2,300 368 2,668 988 184 1,172
Operating days under
fixed rate time
charter 2,188 368 2,556 893 178 1,071
Operating days under
variable rate time
charter 91 - 91 91 - 91
Utilization 99.1% 100.0% 99.2% 99.6% 96.9% 99.1%
Time charter
equivalent per ship
per day - fixed
rate tc (1) $22,267 $35,228 $24,133 $19,784 $30,964 $21,645
Time charter
equivalent per ship
per day - variable
rate tc (2) $64,675 - $64,675 $25,221 - $25,221
Net daily revenue
per ship per day $22,590 $34,027 $24,168 $19,298 $28,708 $20,775
Vessel operating
expenses per ship
per day ($3,474)($4,250) ($3,581)($3,401)($3,786) ($3,461)
Net Operating Cash
Flow per ship per
day before general
and administrative
expenses $19,116 $29,777 $20,587 $15,897 $24,922 $17,314
Nine Months Ended Nine Months Ended
Sep 30, 2007 Sep 30, 2006
------------ ------------
PANAMAX CAPESIZE TOTAL PANAMAX CAPESIZE TOTAL
------- -------- ----- ------- -------- -----
Total Ownership days 6,582 920 7,502 2,436 545 2,982
Operating days under
fixed rate time
charter 6,243 919 7,162 2,151 526 2,677
Operating days under
variable rate time
charter 246 - 246 272 - 272
Utilization 98.6% 99.9% 98.7% 99.5% 96.3% 98.9%
Time charter
equivalent per ship
per day - fixed
rate tc (1) $22,033 $34,597 $23,645 $20,500 $32,314 $22,820
Time charter
equivalent per ship
per day - variable
rate tc (2) $48,700 - $48,700 $19,696 - $19,696
Net daily revenue
per ship per day $21,634 $33,301 $23,064 $19,411 $29,764 $21,306
Vessel operating
expenses per ship
per day ($3,387)($4,057) ($3,469)($3,804)($3,870) ($3,816)
Net Operating Cash
Flow per ship per
day before general
and administrative
expenses $18,247 $29,244 $19,595 $15,607 $25,894 $17,490
(1) M/V Iron Beauty was acquired with an existing time charter at an
above-market rate. The company deducts the fair value of the time
charter from the purchase price of the vessel and allocates it to a
deferred asset which is amortized over the remaining period of the
time charter as a reduction to hire revenue. This results in a daily
rate of approximately $ 30,600 as recognized revenue. For cash flow
purposes the company will continue to receive $ 36,500 per day, less
commissions.
(2) M/V Barbara, one of our seven bareboat charter-in vessels, operated
for most of the third quarter of 2007 and previous periods under a
time charter agreement with Cargill. The time charter rate received
was variable, equal to the 4 T/C Route based on the Baltic Average.
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
days each vessel was a part of our fleet during the period divided by the
number of calendar days in that period.
Ownership days: We define ownership days as the aggregate number of days in
a period during which each vessel in our fleet has been owned by us.
Ownership days are an indicator of the size of our fleet over a period and
affect both the amount of revenues and the amount of expenses that we
record during a period.
Operating days: We define operating days as the number of our available
days in a period less the aggregate number of days that our vessels are off-
hire due to planned dry docking repairs or any other, including unforeseen
circumstances. The shipping industry uses operating days to measure the
aggregate number of days in a period during which vessels actually generate
revenues.
Fleet utilization: We calculate fleet utilization by dividing the number of
our operating days during a period by the number of our Ownership days
during the period. The shipping industry uses fleet utilization to measure
a company's efficiency in finding suitable employment for its vessels and
minimizing the amount of days that its vessels are off-hire for reasons
other than scheduled repairs or repairs under guarantee, vessel upgrades,
special surveys or vessel positioning.
TCE per ship per day: We define TCE (time-charter equivalent) per ship per
day rate as our voyage and time charter revenues less voyage expenses
during a period divided by the number of our operating days during the
period, which is consistent with industry standards. TCE rate is a shipping
industry performance measure used primarily to compare daily earnings
generated by vessels on time charters with daily earnings generated by
vessels on voyage charters, because charter hire rates for vessels on
voyage charters are generally not expressed in per day amounts while
charter hire rates for vessels on time charters generally are expressed in
such amounts.
Net daily revenue: We define the daily TCE rate net of commissions but
including idle time.
Vessel operating expenses per ship per day: This include crew wages and
related costs, the cost of insurance, expenses relating to repairs and
maintenance, the cost of spares and consumable stores, tonnage taxes and
other miscellaneous expenses. We define as our total operating costs
divided by the ownership days.
Fleet Table as of November 5, 2007
CURRENT Year Age TC Expiration Date
FLEET Type DWT Built (in yrs) (maximum period)
Lowlands Beilun Capesize 170,162 1999 8.5 June 2010
Iron Manolis (A) Kamsarmax 82,300 2007 0.6 December 2010
Iron Brooke (A) Kamsarmax 82,300 2007 0.7 December 2010
Iron Miner Capesize 177,000 2007 0.7 April 2012
Iron Lindrew (A) Kamsarmax 82,300 2007 0.8 December 2010
Iron Knight (A) Panamax 76,429 2004 3.4 December 2010
Coal Hunter (A) Kamsarmax 82,300 2006 1.0 December 2010
Pascha (A) Kamsarmax 82,300 2006 0.9 December 2010
Coal Gypsy (A) Kamsarmax 82,300 2006 0.9 December 2010
Iron Anne (A) Kamsarmax 82,000 2006 1.2 December 2010
Iron Vassilis (A) Kamsarmax 82,000 2006 1.3 December 2010
Iron Bill (A) Kamsarmax 82,000 2006 1.5 December 2010
Santa Barbara (A) Kamsarmax 82,266 2006 1.7 December 2010
Ore Hansa (A) Kamsarmax 82,229 2006 1.7 December 2010
Iron Kalypso (A) Kamsarmax 82,204 2006 1.2 December 2010
Iron Fuzeyya (A) Kamsarmax 82,229 2006 1.8 December 2010
Iron Bradyn (A) Kamsarmax 82,769 2005 2.8 December 2010
Grain Harvester (A) Panamax 76,417 2004 3.3 December 2010
Grain Express (A) Panamax 76,466 2004 3.6 December 2010
Kirmar (B) Capesize 165,500 2001 6.1 March 2008
Iron Beauty (B) Capesize 165,500 2001 6.4 June 2010
Coal Pride Panamax 72,600 1999 7.9 June 2010
Iron Man (C)(J) Panamax 72,861 1997 August 2010
Coal Age (C)(J) Panamax 72,861 1997 December 2008
Fearless I (C)(J) Panamax 73,427 1997 June 2008
Barbara (D)(J) Panamax 73,390 1997 June 2008
Linda Leah (D)(J) Panamax 73,390 1997 October 2009
King Coal (J) Panamax 72,873 1997 May 2008
Coal Glory (C)(J) Panamax 73,670 1995 August 2008
Total Current 3.0
Fleet 29 Vessels 2,644,043 years ave. (K)
FLEET TO BE Year Age
DELIVERED Type DWT Built (in yrs) Delivery Range
2008
Newbuilding 1(E) Capesize 180,000 2008 * November 2008
2010
Newbuilding 2(E)(H) Capesize 180,000 2010 * March 2010
Newbuilding 3(F)(I) Capesize 181,000 2010 * October 2010
Newbuilding 4(F)(I) Capesize 181,000 2010 * December 2010
Newbuilding 5(G)(I) Capesize 180,000 2010 * May 2010
Newbuilding 6(G)(I) Capesize 180,000 2010 * June 2010
Newbuilding 7(G)(I) Capesize 180,000 2010 * July 2010
Newbuilding 8(G)(I) Capesize 180,000 2010 * August 2010
TOTAL FLEET TO
BE DELIVERED 8 Vessels 1,442,000
1.8
TOTAL FLEET 37 Vessels 4,086,043 years ave. (K)
* Under Construction
(A), (B), (C), (D), (E), (F) and (G) indicate sister ships. As of July 2,
2007 Quintana had seven sets of sister ships. All seventeen ships that were
acquired from Metrobulk acquisition are sister ships. Sister ships indicate
vessels of the same class made in the same shipyard. The sister-ship
concept further enhances our operational flexibility and efficiency.
(H) Quintana holds a 42.8% interest in the joint venture that will own this
vessel.
(I) Quintana will hold a 50% interest in the joint ventures that will own
these vessels.
(J) Quintana has sold and leased back these ships on a bareboat charter
through July 2015.
(K) On a dwt weighted average and excluding the 7 vessels sold and leased
back.
Contact Information: Company Contact: Paul J. Cornell Chief Financial Officer Tel. 713-751-7525 E-mail: pcornell@quintanamaritime.com Investor Relations / Financial Media: Paul Lampoutis Capital Link, Inc., New York Tel. 212.661.7566 E-mail: plampoutis@capitallink.com