SOURCE: Excel Maritime Carriers Ltd

August 03, 2005 18:53 ET

Excel Maritime Reports Results for the Second Quarter 2005 and for the First Six Months of 2005

PIRAEUS, GREECE -- (MARKET WIRE) -- August 3, 2005 -- Excel Maritime Carriers Ltd (AMEX: EXM), an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes, announced today its un-audited results for the second quarter 2005 and the first half of 2005 ended June 30th.

Second Quarter 2005 Results:

Total revenues for the second quarter 2005 amounted to $31.9 million, an increase of 138% when compared to the $13.4 million earned during the second quarter of 2004. Net income amounted to $14.6 million versus $8.6 million in the second quarter of 2004, an increase of 70%. Earnings per share for the quarter were $0.73 compared to $0.74 in the second quarter of 2004. The second quarter results include a profit of $1.7 million realized from the sale of the M/V "Lucky Lady."

First Half 2005 Results; Adjustment of Net Income and Earnings Per Share for First Quarter 2005:

For the first half of 2005, total revenues amounted to $49.2 million, an increase of 86% from the $26.5 million earned in the first half of 2004. Net income increased by 36% to $23.4 million from $17.2 million in the first half of 2004. Earnings per share for the first half of 2005 amounted to $1.36 compared to $1.49 for the first half of 2004. The results of the first half 2005 include a profit of $ 5.6 million realized from the sale of M/V "Petalis" and M/V "Lucky Lady." The first half 2005 results include a non cash charge of $5.2 million reflecting the effect of the management termination agreement dated March 2nd 2005, between Excel Maritime Carriers Ltd and its previous technical manager, Excel Management Ltd. Excluding the contract termination expense, net income and earnings per share for the first half 2005 would have amounted to $28.6 and $1.66 respectively. The company intended to report this first quarter related charge in the second quarter 2005 after the finalization of its valuation and accounting treatment. Instead, the company concluded to report this charge in an adjustment to first quarter earnings. Therefore, net income for the first quarter is adjusted from $14.0 million to $8.8 million and earnings per share for the same period are adjusted from $0.96 to $0.61.

CEO Christopher Georgakis commented: "We are delighted to be reporting strong earnings for the second quarter 2005, with revenues up 138% over the same period last year. We believe that our fleet deployment strategy of period charters has enabled us to manage effectively volatile market conditions and realize firm time charter earnings.

"Having taken physical delivery of ten vessels during the second quarter 2005, together with an eleventh vessel early in the third quarter, we have completed successfully the first phase of our fleet renewal and expansion plans.

"With an 18-vessel fleet in place, and 50% of our revenues from the new acquisitions fixed for the remainder of 2005, we believe we have positioned the company for future growth."

CFO Eleftherios Papatrifion commented: "I am pleased to be reporting that by the end of the second quarter 2005, we have fully utilized the proceeds from the March 2005 secondary offering. Our Balance Sheet remains strong, as evidenced by the net debt to total capitalization ratio of 41% as of 30th June 2005."

Conference Call and Webcast:

As already announced, tomorrow Thursday, August 4th, 2005, at 9:30am EDT, the company's management will host a conference call to discuss the results.

Conference Call details: Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 866 819 7111 (from the US), 0800 953 0329 (from the UK) or +44 1452 542 301 (from outside the US). Please quote "Excel Maritime."

In case of any problem with the above numbers, please dial 1866 869 2352 (from the US), 0800 694 1449 (from the UK) or +44 1452 560 304 (from outside the US). Please quote "Excel Maritime."

A telephonic replay of the conference call will be available until August 09th, 2005 by dialing 1 866 247 4222 (from the US), 0800 953 1533 (from the UK) or +44 1452 550 000 (from outside the US). Access Code: 8227773#

Slides and audio webcast: A power-point slide presentation will be available on the company's web site from 8:00am EDT, August 4th 2005. There will also be a live -- and then archived -- webcast of the conference call, through the Internet through the Excel Maritime Carriers website (www.excelmaritime.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Updated Fleet List:

The following table represents the existing fleet:

Name               Type        Dwt     Year Built
Capesize
Almar I          Capesize     107,140     1979
                 --------  ----------     ----
Total Capesize       1        107,140
                 --------  ----------     ----
Panamax
Isminaki          Panamax      74,577     1998
Angela Star       Panamax      73,798     1998
Elinakos          Panamax      73,751     1997
Happy Day         Panamax      71,694     1997
Powerful          Panamax      70,083     1994
First Endeavour   Panamax      69,111     1994
Rodon             Panamax      73,670     1993
Birthday          Panamax      71,504     1993
Renuar            Panamax      70,128     1993
Forteza           Panamax      69,634     1993
                 --------  ----------     ----
Total Panamax       10        717,950
                 --------  ----------     ----
Handymax
Emerald           Handymax     45,572     1998
Princess I        Handymax     38,858     1994
Marybelle         Handymax     42,552     1987
Attractive        Handymax     41,524     1985
Lady              Handymax     41,090     1985
Goldmar           Handymax     39,697     1984
Swift             Handymax     37,687     1984
                 --------  ----------     ----
Total Handymax       7        286,980
                 --------  ----------     ----
Grand Total         18      1,112,070     13.2
Summary Fleet Data:
                                       Six Months Ended   Six Months Ended
                                        June 30th, 2005    June 30th, 2004

FLEET DATA
Average number of vessels (1)                      10.9                5.0
Available days for fleet (2)                      1,868                883
Calendar days for fleet (3)                       1,971                910
Fleet utilization (4)                                95%                97%

AVERAGE DAILY RESULTS
Time charter equivalent (5)                    $ 23,125           $ 25,309
Vessel operating expenses (6)                   $ 5,030            $ 4,309
General and administrative expenses (7)         $ 1,394            $ 1,009
Total vessel operating expenses (8)             $ 6,424            $ 5,318
(1) Average number of vessels 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.

(2) Available days for fleet are the total calendar days the vessels were in our possession for the relevant period after subtracting for off hire days associated with major repairs, drydocks or special or intermediate surveys.

(3) Calendar days are the total days we possessed the vessels in our fleet for the relevant period including off hire days associated with major repairs, drydockings or special or intermediate surveys.

(4) Fleet utilization is the percentage of time that our vessels were available for revenue generating available days, and is determined by dividing available days by fleet calendar days for the relevant period.

(5) Time charter equivalent, or TCE, 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.

(6) Daily vessel operating expenses, which includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs is calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period.

(7) Daily general and administrative expense is calculated by dividing general and administrative expense by fleet calendar days for the relevant time period.

(8) Total vessel operating expenses, or TVOE, is a measurement of our total expenses associated with operating our vessels. TVOE is the sum of vessel operating expenses and general and administrative expenses. Daily TVOE is calculated by dividing TVOE by fleet calendar days for the relevant time period.

Consolidated Income Statements for the Second Quarters of 2005 and 2004

              EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
              CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
               FOR THE SECOND QUARTERS OF 2005 AND 2004
           (FOR PERIODS 1/4/05-30/6/05 AND 1/4/04-30/6/04)
     (Expressed in thousands of U.S.Dollars - except per share data)


                                                     Q2 2005       Q2 2004
                                                   Unaudited     Unaudited
REVENUES
Voyage Revenues                                       31,737        12,845
Revenue from managing vessels                            130           533
                                                  ----------    ----------
  Revenue from Operations                             31,867        13,378
                                                  ----------    ----------

EXPENSES
 Voyage expenses                                       3,569         1,810
 Vessel operating expenses                             7,148         2,136
 Vessel depreciation                                   4,926           245
 Amortization for drydocking and special
  survey costs                                           190           209
 General and administrative expenses                   1,576           408
                                                  ----------    ----------
                                                      17,409         4,808
                                                  ----------    ----------

Gain from Vessel's sale                                1,718             -

  Income from operations                              16,176         8,570
                                                  ----------    ----------

OTHER INCOME (EXPENSES):

Interest and finance costs                            (2,257)          (39)
Interest income                                          618            28
Foreign currency                                          30             3
Other, net                                                 6            15
                                                  ----------    ----------
   Total other income (expenses), net                 (1,603)            7
                                                  ----------    ----------

Net Income from Operations                            14,573         8,577
                                                  ==========    ==========

Net Income                                            14,573         8,577
                                                  ==========    ==========

Earnings per share, basic & diluted                 0.73          0.74
Weighted average number of shares                 19,927,870    11,532,725



  Consolidated Income Statements for the First Half of 2005 and 2004
             EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
             CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
                 FOR THE FIRST HALF OF 2005 AND 2004
        (FOR SIX MONTHS ENDED JUNE 30, 2005 AND JUNE 30, 2004)
    (Expressed in thousands of U.S.Dollars - except per share data)

                                                            June 30,
                                                       2005         2004
                                                     Unaudited   Unaudited

REVENUES
Voyage Revenues                                       48,938        25,756
Revenue from managing vessels                            261           705
                                                     -------       -------
   Revenue from Operations                            49,199        26,461
                                                     -------       -------

EXPENSES
   Voyage expenses                                     5,740         3,414
   Vessel operating expenses                           9,916         3,951
   Vessel depreciation                                 5,893           490
   Amortization for drydocking
    and special survey costs                             371           373
   Contract termination expense                        5,186             -
   General and administrative expenses                 2,747           918
                                                     -------       -------
                                                      29,853         9,146
                                                     -------       -------

Gain from Vessel's sale                                5,585             -

   Income from operations                             24,931        17,315
                                                     -------       -------


OTHER INCOME (EXPENSES):

Interest and finance costs                            (2,663)         (119)
Interest income                                        1,093            38
Foreign currency                                          28           (12)
Other, net                                                (2)           10
                                                     -------       -------
   Total other income
    (expenses), net                                   (1,544)          (83)
                                                     -------       -------
Net Income from Operations                            23,387        17,232
                                                     =======       =======


Net Income                                            23,387        17,232
                                                     =======       =======

Earnings per share, basic & diluted                     1.36          1.49
Weighted average number of shares                 17,247,630    11,532,725




            Consolidated Balance Sheet for the First Half of 2005
                EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
              AT DECEMBER 31, 2004 AND JUNE 30, 2005 (UNAUDITED)
         (Expressed in thousands of U.S.Dollars - except per share data)

                                                     June 30,  December 31,
                                                      2005        2004
                                                    Unaudited    Audited

ASSETS
CURRENT ASSETS:
Cash and cash equivalents                             53,755        64,903
Restricted cash                                        5,574         2,493
Accounts receivable:                                   3,855         2,460
Other current assets                                   2,086         1,520
                                                     -------       -------
   Total Current Assets                               65,270        71,376
                                                     -------       -------
FIXED ASSETS:
Advances for new acquisitions                          3,437        26,220
Vessels' cost                                        463,137        18,612
Accumulated depreciation                              (9,830)       (3,997)
                                                     -------       -------
   Net book value                                    456,744        40,835
                                                     -------       -------
   Total fixed assets                                456,744        40,835
                                                     -------       -------
OTHER NON CURRENT ASSETS:
Goodwill                                                 400           400
Deferred charges, net                                  3,994         1,686
                                                     -------       -------
   Total Assets                                      526,408       114,297
                                                     =======       =======

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long term debt                     45,267         7,870
                                                     -------       -------
Accounts payable                                       4,349         1,262
Other current liabilities                              7,457         1,600
                                                     -------       -------
   Total Current Liabilities                          57,073        10,732
                                                     -------       -------

LONG-TERM DEBT, net of current portion               223,926         5,750
                                                     -------       -------

STOCKHOLDERS' EQUITY:
Preferred Stock, $0.01 par value, 5,000,000
 shares authorized, none issued                            -             -
Common Stock, $0.01 par value, 49,000,000
 A Class shares and 1,000,000 B
 class shares authorized: 13,696,153
 A Class shares and 114,946 B Class shares,
 issued and outstanding at December 31, 2004.
 19,595,153 A Class shares and 114,946
 B Class shares, issued and outstanding
 at June 30, 2005.                                       197           138
Additional paid-in capital                           182,929        63,738
Shares to be issued                                    4,957             -
Retained earnings                                     57,515        34,128
                                                     -------       -------
                                                     245,598        98,004
Less: Treasury stock
(78,650 A Class shares and 588 B Class shares)
 at December 31, 2004 and June 30, 2005                 (189)         (189)
   Total stockholders' equity                        245,409        97,815
                                                     -------       -------
   Total Liabilities & Stockholders' Equity          526,408       114,297
                                                     =======       =======
About Excel Maritime Carriers Ltd

The Company 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. The company's current fleet consists of 18 vessels (one Capesize, ten Panamax and seven Handymax vessels) with a total carrying capacity of 1,112,070 dwt. The Company was incorporated in 1988 and its common stock is listed on the American Stock Exchange (AMEX) since 1998, trading under the symbol EXM. For more information about the company, please go to our corporate website www.excelmaritime.com

Forward-Looking Statement

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements.

Factors that could cause actual results to differ materially include, but are not limited to 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.

Contact Information

  • Contact:

    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: Email Contact
    www.capitallink.com

    Company:
    Christopher Georgakis
    Chief Executive Officer
    Excel Maritime Carriers Ltd.
    67 Akti Miaouli Street
    185 38 Piraeus, Greece
    Tel: 011-30-210-45-98-692
    Fax: 011-30-210-42-82-628
    E-Mail: Email Contact
    www.excelmaritime.com