SOURCE: Quintana Maritime Limited

November 05, 2007 16:05 ET

Quintana Maritime Limited Reports Third Quarter 2007 Results and Declares Dividend of $0.31 per Share

ATHENS, GREECE--(Marketwire - November 5, 2007) - Quintana Maritime Limited (NASDAQ: QMAR), a leading international provider of dry bulk transportation services, announced today its operating and financial results for the three months and nine months ended September 30, 2007.

Third Quarter 2007 Highlights:

--  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.

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