-- On April 15, 2008, the Company successfully completed the acquisition of Quintana Maritime Limited, creating a combined company that operates a fleet of 47 vessels with a total carrying capacity of approximately 3.7 million DWT and an average age of approximately 8.5 years. The first quarter 2008 results do not include those of Quintana, as the acquisition was completed as of April 15, 2008. -- Revenues from operations increased by approximately 94% to $69.8 million from $36.0 million in the first quarter of 2007; -- Net income increased by approximately 213% to $38.5 million or $1.93 per diluted share, compared to $12.3 million or $0.61 per diluted share in the first quarter of 2007; -- EBITDA was approximately $51.9 million compared to $22.5 million in the first quarter of 2007, an increase of approximately 131%; -- An average of 18 vessels were operated earning a blended average time charter equivalent, net rate of $41,754 per day; -- The Company declared a quarterly dividend of $0.20 per share for the first quarter 2008 payable on June 16th to shareholders on record as of June 2nd.Completion of the Quintana Maritime Acquisition: On April 15, 2008, the Company completed the acquisition of Quintana Maritime Limited for approximately $1.5 billion in cash and stock. Under the terms of the merger agreement, each issued and outstanding share of Quintana's common stock received $13.00 in cash and 0.3979 Excel Class A common shares. Following the completion of the acquisition, Quintana was delisted and its shares no longer trade. The current number of shares of Excel, issued and outstanding, after the acquisition, is 43,389,880 Class A shares and 135,326 Class B shares. The merger has created one of the largest dry bulk shipping companies in the industry and we now operate the largest dry bulk fleet by DWT listed in the United States. The combined company has an operating fleet of 47 vessels with a total carrying capacity of approximately 3.7 million DWT. Excel's fleet is one of the most modern and diversified in the industry. With the addition of the Quintana fleet, the average age of our fleet was further reduced to approximately 8.5 years, which is significantly below the industry average. The first quarter 2008 results do not include those of Quintana, as the acquisition was completed as of April 15, 2008. First Quarter 2008 Results: Revenues from operations for the first quarter of 2008 amounted to $69.8 million as compared to $36.0 million for the same period in 2007, an increase of 94%. Net income for the first quarter 2008 was $38.5 million, or $1.93 per diluted share compared to $12.3 million or $0.61 per diluted share for the same quarter in 2007, an increase of approximately 213%. EBITDA for the first quarter of 2008 was $51.9 million compared to $22.5 million for the first quarter of 2007, an increase of approximately 131%. Please refer to a subsequent section of this Press Release for a reconciliation of EBITDA to Net Income. An average of 18 vessels were operated during the first quarter of 2008 earning a blended average time charter equivalent rate of $41,754 per day, compared to an average of 17 vessels operated during the first quarter of 2007 earning a blended average time charter equivalent rate of $22,485 per day. Stamatis Molaris, President and Chief Executive Officer of Excel, stated, "The first quarter 2008 results are underpinned by the strong dry bulk market conditions experienced during the second half of 2007, as a significant part of the fleet was deployed on shorter period charters or in the spot market. We believe that Excel's significant operating leverage, with the merger of Quintana's fleet, will continue to benefit its results in the current strong rate environment." Time Charter Coverage: The combined fleet charter coverage, after the acquisition of Quintana's fleet, for the second half of 2008 and for the full years 2009 and 2010 is expected to be approximately 75%, 60% and 52% respectively. As a result, the projected net revenues under fixed time charters for the second half of 2008 and for the full years 2009 and 2010 is expected to be approximately $188 million, $299 million and $241 million respectively. The 2001-built, 165,500 DWT Capesize, Kirmar, has been recently fixed for three years at approximately $100,000 net per day. The charter is to commence in the middle of May, 2008 to ETA of Dubai. The 1997-built, 73,000 DWT Panamax, King Coal, has been recently fixed for three years at approximately $54,000 net per day. The charter is due to commence in the middle of June, 2008 to ArcelorMittal. Stamatis Molaris, President and Chief Executive Officer of Excel, stated, "Post-merger, Excel's combined fleet will be deployed in a more balanced employment approach. We will take advantage of the current strong rate environment to expand our charter coverage for 2009 and beyond to secure consistent cash flows and ongoing profitability to our shareholders, but at the same time we will always leave a part of our fleet to operate under short-term period charters or in the spot market." Dividend Guidance: The Board of Directors has declared a dividend of $0.20 per share, payable on June 16, 2008 to all shareholders of record as of June 2, 2008. Inclusive of this dividend, Excel Maritime has declared an aggregate dividend of $1.00 per share since May 2007. The dividend payment of $0.20 per share is consistent with the guidance provided by the Board of Directors. The Board retains the authority to alter the dividend policy at its discretion. Mr. Molaris commented, "We are very pleased with our Board's decision to continue paying distributions to shareholders, while at the same time the Company has been growing its fleet. Our Board is fully committed to increase shareholders value and it will carefully review its dividend policy when the integration of Excel and Quintana has been completed." Conference Call details: Today, Monday, May 19, 2008 and at 10:00 a.m. EDT, the Company's management will host a conference call to discuss the results. Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 866 819 7111 (US Toll Free Dial In), 0800 953 0329 (UK Toll Free Dial In) or +44 (0)1452 542 301 (Standard International Dial In). Please quote "Excel Maritime." In case of any problems with the above numbers, please dial 1 866 223 0615 (US Toll Free Dial In), 0800 694 1503 (UK Toll Free Dial In) or +44 (0)1452 586 513 (Standard International Dial In). Please Quote "Excel Maritime." A telephonic replay of the conference call will be available until May 26, 2008 by dialing 1 866 247 4222 (US Toll Free Dial In), 0800 953 1533 (UK Toll Free Dial In) or +44 (0)1452 550 000 (Standard International Dial In). Access Code: 1838801# Slides and audio webcast: There will also be a live, and then archived, webcast of the conference call, available through Excel Maritime Carriers' website (www.excelmaritime.com). Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. - Financial and Other Financial Data Follow -
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND MARCH 31, 2007 (In thousands of U.S. Dollars, except for share and per share data) First Quarter First Quarter 2008 2007 Unaudited Unaudited -------------- -------------- REVENUES Voyage Revenues 69,524 35,865 Revenue from managing related party vessels 233 161 -------------- -------------- Revenue from Operations 69,757 36,026 -------------- -------------- EXPENSES Voyage expenses 4,168 2,478 Commission to a related party 868 446 Vessel operating expenses 9,047 8,294 Depreciation expense 7,992 7,118 Amortization for drydocking and special survey 1,497 687 General and administrative expenses 3,905 2,418 -------------- -------------- 27,477 21,441 -------------- -------------- -------------- -------------- Income from operations 42,280 14,585 -------------- -------------- OTHER INCOME (EXPENSES): Interest and finance costs (6,351) (3,514) Interest Income 2,639 1,161 Other, net (72) (22) -------------- -------------- Total other income (expenses), net (3,784) (2,375) -------------- -------------- ============== ============== Net Income from Operations 38,496 12,210 -------------- -------------- US Source Income Taxes 245 56 -------------- -------------- Net Income, after taxes and before minority interest 38,251 12,154 Minority interest - 2 Income from Investment in affiliate 229 109 -------------- -------------- Net income 38,480 12,265 -------------- -------------- Earnings per common share, basic $ 1.93 $ 0.61 Weighted average number of shares basic 19,955,190 19,949,644 Earnings per common share, diluted $ 1.93 $ 0.61 Weighted average number of shares diluted 19,962,656 19,959,257 -------------- -------------- EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AT March 31, 2008 (UNAUDITED) AND DECEMBER 31, 2007 (UNAUDITED) (In thousands of U.S. Dollars, except for share and per share data) March 31, December 31, 2008 2007 Unaudited Unaudited ------------ ------------ ASSETS CURRENT ASSETS: Cash and cash equivalents 278,327 243,672 Restricted cash 4,252 3,175 Accounts receivable 2,898 1,506 Other current assets 4,396 4,381 ------------ ------------ Total Current Assets 289,873 252,734 ------------ ------------ FIXED ASSETS: Vessels, net 519,252 527,164 Office furniture & equipments, net 1,414 1,466 ------------ ------------ Total fixed assets 520,666 528,630 ------------ ------------ OTHER NON CURRENT ASSETS: Investment in affiliate 15,917 15,688 Other non current assets 24,183 15,519 Restricted cash 10,748 11,825 ------------ ------------ Total Assets 861,387 824,396 ------------ ------------ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long term debt, net of deferred financing fees 38,327 39,179 Accounts payable 9,344 4,688 Other current liabilities 13,894 10,067 Financial Instruments 4,244 2,056 ------------ ------------ Total Current Liabilities 65,809 55,990 LONG-TERM DEBT, net of current portion and net of deferred financing fees 361,143 368,585 ------------ ------------ Minority interest - - STOCKHOLDERS' EQUITY: Preferred Stock, $0.01 par value: 5,000,000 shares authorized, none issued - - Common Stock, $0.01 par value; 100,000,000 Class A shares and 1,000,000 Class B shares authorized; 19,893,556 Class A shares and 135,326 Class B shares issued and outstanding at March 31, 2008 and December 31, 2007 200 200 Additional paid-in capital 194,020 193,897 Other Comprehensive Loss (65) (65) Retained earnings 240,469 205,978 Less: Treasury stock (78,650 A Class shares and 588 B Class shares) at December 31, 2007 and March 31, 2008 (189) (189) ------------ ------------ Total stockholders' equity 434,435 399,821 ------------ ------------ Total Liabilities & Stockholders' Equity 861,387 824,396 ------------ ------------ EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2008 (UNAUDITED) AND MARCH 31, 2007 (UNAUDITED) (In thousands of U.S. Dollars) March 31, March 31, 2008 2007 Unaudited Unaudited ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income for the period 38,480 12,265 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 9,740 7,903 Other non cash expenses 1,880 214 Income from Investment in affiliate (229) (114) Changes in operating assets and liabilities: Current Assets (1,081) (196) Current Liabilities 4,599 1,701 Payments for dry docking & special survey (3,629) (1,652) ------------ ------------ Net cash from Operating Activities 49,760 20,121 ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Contribution to equity method investment - (11,000) Office furniture & equipments (28) (167) Payment for business acquisition costs (5,941) ------------ ------------ Net cash used in Investing Activities (5,969) (11,167) ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments of long term debt (8,381) (7,808) Minority Interest - (4) Payment of financing costs (755) - ------------ ------------ Net cash used in Financing Activities (9,136) (7,812) ------------ ------------ Net increase in cash & cash equivalents 34,655 1,142 Cash & cash equivalents at beginning of period 243,672 86,289 ------------ ------------ Cash & cash equivalents at end of the period 278,327 87,431 ============ ============ SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid during the year for: Interest payments 2,481 3,587 ------------ ------------ EBITDA Reconciliation (In thousands of U.S. Dollars) First Quarter Ended First Quarter Ended March 31, 2008 March 31, 2007 Net Income 38,480 12,265 Net Interest Expense 3,712 2,353 Depreciation 7,992 7,118 Amortization 1,497 687 Taxes 245 56 ------------------- ------------------- EBITDA 51,926 22,479 =================== ===================Disclosure of Non-GAAP Financial Measures We consider EBITDA represents net income plus net interest expense, depreciation, amortization and taxes. The Company's management uses EBITDA as a performance measure. The Company believes that EBITDA is useful to investors, because the shipping industry is capital intensive and may involve significant financing costs. EBITDA is not an item 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 EBITDA may not be the same as that used by other companies in the shipping or other industries. ABOUT EXCEL MARITIME CARRIERS LTD Excel is an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes, such as iron ore, coal and grains, as well as bauxite, fertilizers and steel products. After the acquisition of Quintana, Excel owns a fleet of 40 vessels and, together with 7 Panamax vessels under bareboat charters, operates 47 vessels (4 Capesize, 14 Kamsarmax, 21 Panamax, 2 Supramax and 6 Handymax vessels) with a total carrying capacity of approximately 3.7 million DWT. Excel Class A common shares have been listed since September 15, 2005 on the New York Stock Exchange (NYSE) under the symbol EXM and, prior to that date, were listed on the American Stock Exchange (AMEX) since 1998. For more information about the Company, please go to our corporate website www.excelmaritime.com. Forward-Looking Statement This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, the Company's planned acquisition of Quintana 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 satisfy the closing conditions of the acquisition, 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 first quarter of 2008 compared to the corresponding period in the prior year (in U.S. Dollars per day, unless otherwise stated):
PANAMAX FLEET HANDYSIZE FLEET TOTAL FLEET ------------------ ------------------ -------------------- Three Three Three Three Three Three Months Months Months Months Months Months ended ended ended ended ended ended March March March March March March 31, 2008 31, 2007 31, 2008 31, 2007 31, 2008 31, 2007 -------- -------- -------- -------- --------- --------- Total ownership days 910 900 728 630 1,638 1,530 Available days under period charter 670 886 293 165 964 1,051 Available days under spot / short duration charter 182 - 399 414 581 414 Utilization 93.7% 98.4% 95.1% 91.9% 94.3% 95.8% Time charter equivalent per ship per day - period 32,473 24,760 37,659 16,164 34,051 23,412 Time charter equivalent per ship per day - spot 74,325 - 45,497 20,132 54,528 20,132 Time charter equivalent per ship per day - weighted average 41,410 24,760 42,176 19,001 41,754 22,485 Net daily revenue per ship per day 38,782 24,375 40,105 17,464 39,370 21,530 Vessel operating expenses per ship per day (6,219) (5,732) (4,653) (4,977) (5,523) (5,421) Net Operating Cash Flow per ship per day before general and administrative expenses 32,563 18,643 35,452 12,487 33,847 16,108 ======== ======== ======== ======== ========= =========Glossary of Terms Average number of vessels -- This is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of calendar days each vessel was a part of our fleet during the period divided by the number of calendar days in that period. Total ownership days -- We define these as the total days we owned the vessels in our fleet for the relevant period including off hire days associated with major repairs, drydockings or special or intermediate surveys. Ownership days are an indicator of the size of the fleet over a period and affect both the amount of revenues and the amount of expenses that are recorded during a period. Available days -- These are the ownership days less the aggregate number of off-hire days associated with major repairs, drydocks or special or intermediate surveys and the aggregate amount of time spent positioning vessels. 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 a duration of less than six months. Fleet utilization -- This is the percentage of time that our vessels were available for revenue generating days, and is determined by dividing available days by ownership days for the relevant period. 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. 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 (In thousands of U.S. Dollars) First Quarter Ended First Quarter Ended March 31, 2008 March 31, 2007 ------------------- ------------------- Voyage Revenues 69,524 35,865 ------------------- ------------------- Voyage Expenses (4,168) (2,478) ------------------- ------------------- Commission to a Related Party (868) (446) ------------------- ------------------- Total Revenue, net of voyage expenses 64,488 32,941 ------------------- ------------------- Total Available days 1,544 1,465 ------------------- ------------------- Time Charter Equivalent 41,754 22,485 ------------------- -------------------Net daily revenue We define this as the daily TCE rate including idle time. Daily vessel operating expenses This includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs and is calculated by dividing vessel operating expenses by total ownership days for the relevant time period. Daily general and administrative expense This is calculated by dividing general and administrative expense by total ownership days for the relevant time period. Fleet List as of May 19, 2008: The following table represents our fleet as of May 19, 2008. This table takes into account the fleet from the acquisition of Quintana:
TC Expiration Date Name Type Dwt Year Built (maximum period) ---------- ----------- ----------- ----------------- Capesize Lowlands Beilun Capesize 170,162 1999 June 2010 Iron Miner Capesize 177,000 2007 April 2012 Kirmar Capesize 165,500 2001 June 2011 Iron Beauty Capesize 165,500 2001 June 2010 ---------- ----------- ----------- ----------------- Total Capesize 4 678,162 ---------- ----------- ----------- ----------------- Kamsarmax Iron Manolis Kamsarmax 82,300 2007 December 2010 Iron Brooke Kamsarmax 82,300 2007 December 2010 Iron Lindrew Kamsarmax 82,300 2007 December 2010 Coal Hunter Kamsarmax 82,300 2006 December 2010 Pascha Kamsarmax 82,300 2006 December 2010 Coal Gypsy Kamsarmax 82,300 2006 December 2010 Iron Anne Kamsarmax 82,000 2006 December 2010 Iron Vassilis Kamsarmax 82,000 2006 December 2010 Iron Bill Kamsarmax 82,000 2006 December 2010 Santa Barbara Kamsarmax 82,266 2006 December 2010 Ore Hansa Kamsarmax 82,229 2006 December 2010 Iron Kalypso Kamsarmax 82,204 2006 December 2010 Iron Fuzeyya Kamsarmax 82,229 2006 December 2010 Iron Bradyn Kamsarmax 82,769 2005 December 2010 ---------- ----------- ----------- ----------------- Total Kamsarmax 14 1,151,497 ---------- ----------- ----------- ----------------- Panamax Grain Harvester Panamax 76,411 2004 December 2010 Grain Express Panamax 76,466 2004 December 2010 Iron Knight Panamax 76,429 2004 December 2010 Coal Pride Panamax 72,600 1999 June 2010 Iron Man (A) Panamax 72,861 1997 August 2010 Coal Age (A) Panamax 72,861 1997 December 2008 Fearless I (A) Panamax 73,427 1997 July 2008 Barbara (A) Panamax 73,390 1997 June 2008 Linda Leah (A) Panamax 73,390 1997 October 2009 King Coal (A) Panamax 72,873 1997 August 2011 Coal Glory (A) Panamax 73,670 1995 August 2008 Isminaki Panamax 74,577 1998 June 2009 Angela Star Panamax 73,798 1998 November 2008 Elinakos Panamax 73,751 1997 November 2009 Rodon Panamax 73,670 1993 November 2008 Happy Day Panamax 71,694 1997 December 2008 Birthday Panamax 71,504 1993 May 2008 Renuar Panamax 70,128 1993 February 2009 Powerful Panamax 70,083 1994 July 2009 Forteza Panamax 69,634 1993 August 2009 First Endeavour Panamax 69,111 1994 October 2009 ---------- ----------- ----------- ----------------- Total Panamax 21 1,532,328 ---------- ----------- ----------- ----------------- Supramax July M Supramax 55,567 2005 May 2008 Mairouli Supramax 53,206 2005 June 2008 ---------- ----------- ----------- ----------------- Total Supramax 2 108,773 ---------- ----------- ----------- ----------------- TC Expiration Date Type Dwt Year Built (maximum period) Handymax Emerald Handymax 45,588 1998 July 2008 Marybelle Handymax 42,552 1987 July 2008 Attractive Handymax 41,524 1985 May 2008 Lady Handymax 41,090 1985 June 2008 Princess I Handymax 38,858 1994 July 2009 Swift Handymax 37,687 1984 June 2008 ---------- ---------- ------------- ------------------ Total Handymax 6 247,299 ---------- ---------- ------------- ------------------ 8.5 Years GRAND TOTAL 47 3,718,059 (Average Age) ---------- ---------- ------------- ------------------ Delivery Range Fleet To Be Delivered Type Dwt (B) Sandra Capesize 180,000 December 2008 Christine (C) Capesize 180,000 May 2010 Hope (D) Capesize 181,000 November 2010 Lillie (D) Capesize 181,000 December 2010 Fritz (D) Capesize 180,000 May 2010 Benthe (D) Capesize 180,000 June 2010 Gayle Frances (D) Capesize 180,000 July 2010 Iron Lena (D) Capesize 180,000 August 2010 ------------- ------------- ---------------- Total Fleet To Be Delivered 8 1,442,000 ------------- ------------- ---------------- (A) These vessels were sold in 2007 and leased back on a bareboat charter through July 2015. (B) The delivery dates shown in this column are estimates based on the delivery dates set forth in the relevant shipbuilding contracts or resale agreements. There can be no assurances that the vessels will be delivered timely or at all. (C) Excel holds a 42.8% interest in the joint venture that will own the vessel. (D) Excel holds a 50% interest in the joint ventures that will own these vessels.
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: Elefterios 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: info@excelmaritime.com www.excelmaritime.com