SOURCE: Excel Maritime

August 05, 2009 08:20 ET

Excel Maritime Reports Results for the Second Quarter and Six-Month Period Ended June 30, 2009

ATHENS, GREECE--(Marketwire - August 5, 2009) - Excel Maritime Carriers Ltd (NYSE: EXM), an owner and operator of dry bulk carriers and a leading international provider of worldwide seaborne transportation services for dry bulk cargoes, announced today its operating and financial results for the second quarter and six-month period ended June 30, 2009.

Second Quarter 2009 Highlights:

--  Revenue from operations for the quarter amounted to $173.9 million as
    compared to $205.5 million in the second quarter of 2008.
    
--  Net income for the quarter was $78.0 million or $1.05 per weighted
    average diluted share compared to $123.6 million or $3.06 per weighted
    average diluted share in the second quarter of 2008. The results for the
    second quarters of 2009 and 2008 include non-cash items of $14.3 million
    and $22.8 million, respectively relating to the unrealized gain from the
    valuation of interest rate swaps. Net income, excluding the above items,
    for the second quarter of 2009 would amount to $63.7 million or $0.86 per
    weighted average diluted share compared to respective income for the second
    quarter of 2008 of $100.8 million or $2.50 per weighted average diluted
    share.
    
--  Adjusted EBITDA for the second quarter of 2009 was $57.3 million
    compared to $91.0 million for the second quarter of 2008. A reconciliation
    of adjusted EBITDA to Net Income is included in a subsequent section of
    this release.
    
--  An average of 47 vessels were operated during the second quarter of
    2009 earning a blended average time charter equivalent rate of $22,148 per
    day compared to $33,325 per day for the second quarter of 2008 earned by an
    average of 42.2 vessels.
    

Six Months 2009 Highlights:

--  Revenue from operations for the six-month period ended June 30, 2009
    increased to $396.0 million from $275.3 million in the six-month period
    ended June 30, 2008.
    
--  Net income for the six-month period ended June 30, 2009 was $196.0
    million or $3.27 per weighted average diluted share compared to $158.6
    million or $5.28 per weighted average diluted share in the respective
    period of 2008. These results include non-cash items of $21.0 million in
    both periods relating to the unrealized gain from the valuation of interest
    rate swaps. Net income for 2009 includes also a non-cash item of $0.1
    million relating to the resulting gain from the sale of vessel Swift. Net
    income, excluding the above items, would amount to $174.9 million or $2.92
    per weighted average diluted share for the six month period ended June 30,
    2009 compared to $137.6 million or $4.58 per weighted average diluted share
    for the respective period in 2008.
    
--  Adjusted EBITDA for the six month period ended June 30, 2009 was
    $110.5 million compared to $143.0 million for the respective period of
    2008.  A reconciliation of adjusted EBITDA to Net Income is included in a
    subsequent section of this release.
    

Year to Date Corporate Developments

During the six-month period ended June 30, 2009, the following corporate developments took place, which are discussed in more detail in our earnings release for the first quarter of 2009 released on May 22, 2009:

--  Nordea and Credit Suisse loan amendments and equity infusion;
--  Dividend suspension; and
--  Receipt of $5.2 million, representing Oceanaut's liquidation proceeds.
    

Fleet Developments:

Sale of vessel

Based on a Memorandum of Agreement dated February 20, 2009, the M/V Swift, a Handymax vessel of 37,687 dwt built in 1984 was sold for net proceeds of approximately $3.8 million. As of December 31, 2008, the vessel's value was impaired and written down to her fair value, which approximated her sale proceeds and thus, the 2009 results were not materially affected. The vessel was delivered to her new owners on March 16, 2009. Following the sale of the vessel, the Company repaid an amount of $4.6 million of its loan with Nordea Bank.

Vessels new fixtures

On April 16, 2009 the M/V Sandra, a Capesize vessel of 180,274 dwt built in 2008, terminated her existing time charter. The Company received approximately $2.0 million as compensation for the early termination and entered into a new charter at a daily rate of $32,000 expiring in September 2010. A second charter on the vessel has been fixed commencing upon completion of her current charter and through February 2016 at a daily base rate of $25,000, with 50% profit sharing based on the monthly AV4 BCI charter rate as published by the Baltic Exchange.

On June 8, 2009 the M/V Birthday, a Panamax vessel of 71,504 dwt built in 1993, began a new time charter for a period of 12-14 months at a daily rate of $16,500.

On June 10, 2009 the M/V Barbara, a Panamax vessel of 73,307 dwt built in 1997, began a new time charter for a period of 12-14 months at a daily rate of $23,000.

On June 22, 2009 the M/V Powerful, a Panamax vessel of 70,083 dwt built in 1994, began a new time charter for a period of 6-8 months at a daily rate of $20,500.

Time Charter Coverage

As of today, we have secured under time charter employment 66% of our operating days for the second half of 2009 and 53% for 2010.

Management Commentary:

Lefteris Papatrifon, Chief Financial Officer of Excel, stated, "We are very pleased with our financial and operating performance for the second quarter of 2009, given the prevailing market conditions. As we had anticipated earlier in the year, global economic conditions, which directly affected our sector, have started improving since the first quarter of this year. Our strategy of enhancing the stability of our cash flows by gradually fixing our vessels under charters at the proper time has continued to benefit us. We have not only maintained but we even improved our operating revenues and profitability, as depicted by the second quarter 2009 EBITDA of $57.3 million as compared to the first quarter 2009 EBITDA of $53.3 million. The recent further improvement of the economic sentiment in the US and China, as evidenced by various economic indicators and future market expectations, allows us to be cautiously optimistic for the future. We will continue implementing our strategy, which we expect will allow us to continue managing current market volatility while at the same time being able to take advantage of any opportunities presented to us."

Second Quarter 2009 Results:

The Company reported net income for the quarter of $78.0 million or $1.05 per weighted average diluted share as compared to net income of $123.6 million or $3.06 per weighted average diluted share for the second quarter of 2008.

The results for the second quarters of 2009 and 2008 include non-cash items of $14.3 million and $22.8 million, respectively relating to the unrealized gain from the valuation of interest rate swaps. Net income, excluding the above items, for the second quarter of 2009 would amount to $63.7 million or $0.86 per weighted average diluted share compared to respective income for the second quarter of 2008 of $100.8 million or $2.50 per weighted average diluted share.

Included in the above adjusted net income are also the amortization of favorable and unfavorable time charters that were fair valued upon acquiring Quintana Maritime Limited ("Quintana") on April 15, 2008 amounting to a net income of $65.3 million ($0.88 per weighted average diluted share) and $65.0 million ($1.61 per weighted average diluted share) for the second quarters of 2009 and 2008, respectively and the amortization of stock based compensation expense of $3.0 million and $2.6 million, respectively.

In addition, effective January 1, 2009, we changed the method of accounting for dry-docking and special survey costs from the deferral method to the expense as incurred method, as well as, adopted FASB Staff Position APB 14-1 "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion" that changed the method of accounting for our Convertible Notes. (Please refer to a subsequent section of this Press Release for a further discussion on these accounting changes). Such changes were effected retrospectively to all periods presented and their effect in the three months to June 30, 2009 was a decrease in net income of approximately $1.3 million or $0.02 per weighted average diluted share in relation to the change in dry-dock and special survey policy and $1.4 million or $0.02 per weighted average diluted share in relation to the change in the accounting for the convertible notes.

Revenues for the second quarter of 2009 amounted to $173.9 million as compared to $205.5 million for the same period in 2008, a decrease of approximately 15.4%.

Included in revenues for the second quarters of 2009 and 2008 are $75.3 million and $73.3 million, respectively of non-cash revenues relating to the amortization of unfavorable time charters that were fair valued upon acquiring Quintana.

An average of 47 vessels were operated during the second quarter of 2009 earning a blended average time charter equivalent rate of $22,148 per day compared to $33,325 per day for the second quarter of 2008 earned by an average of 42.2 vessels. Please refer to a subsequent section of this Press Release for a calculation of the TCE.

Adjusted EBITDA for the second quarter of 2009 was $57.3 million compared to $91.0 million for the second quarter of 2008, a decrease of approximately 37.0%. Please refer to a subsequent section of this Press Release for a reconciliation of adjusted EBITDA to Net Income.

Six Months to June 30, 2009:

The Company reported net income for the period of $196.0 million or $3.27 per weighted average diluted share as compared to net income of $158.6 million or $5.28 per weighted average diluted share for the respective period of 2008.

The results for the six-month periods ended June 30, 2009 and 2008 include a non-cash item of $21.0 million in both periods relating to the unrealized gain from the valuation of interest rate swaps. Net income for 2009 includes also a non-cash item of $0.1 million relating to the resulting gain from the sale of vessel Swift. Net income, excluding the above items, would amount to $174.9 million or $2.92 per weighted average diluted share for the six month period ended June 30, 2009 compared to $137.6 million or $4.58 per weighted average diluted share for the respective period in 2008.

Included in the above adjusted net income are also the amortization of favorable and unfavorable time charters discussed above and amounting to a net income of $184.6 million ($3.1 per weighted average diluted share) out of which $51.5 million ($0.86 per weighted average diluted share) relate to the accelerate amortization of the time charter value of M/V Sandra and M/V Coal Pride assumed upon Quintana acquisition due to their termination and $65.0 million ($2.2 per weighted average diluted share) for the six-month periods ended June 30, 2009 and 2008, respectively and the amortization of stock based compensation expense of $5.4 million and $2.7 million, respectively.

The effect of the accounting changes discussed above in the six-month period ended June 30, 2009 was a decrease in net income of approximately $3.3 million or $0.06 per weighted average diluted share in relation to the change in dry-dock and special survey policy and $2.8 million or $0.05 per weighted average diluted share in relation to the change in the accounting for the convertible notes.

Revenues for the period amounted to $396.0 million as compared to $275.3 million for the same period in 2008, an increase of approximately 43.8%.

Included in revenues for the six-month periods ended June 30, 2009 and 2008 are $204.4 million and $73.3 million, respectively of non-cash revenues relating to the amortization of unfavorable time charters that were fair valued upon acquiring Quintana.

An average of 47.4 vessels were operated during the six-month period ended June 30, 2009, earning a blended average time charter equivalent (TCE) rate of $21,559 per day compared to $35,786 per day for the six-months period ended June 30, 2008 earned by an average of 30.1 vessels. Please refer to a subsequent section of this Press Release for a calculation of the TCE.

Adjusted EBITDA for the period was $110.5 million compared to $143.0 million for the respective period of 2008, a decrease of approximately 22.7%. Please refer to a subsequent section of this Press Release for a reconciliation of adjusted EBITDA to Net Income.

Conference Call Details:

Today August 5, 2009 at 9:00 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" to the operator.

A telephonic replay of the conference call will be available until August 12, 2009 by dialing 1 866 247 4222 (US Toll Free Dial In), 0800 953 1533 (UK Toll Free Dial In) or +44 (0)1452 550 000 (Standard International Dial In). Access Code: 1838801#

Slides and Audio Webcast:

There will also be a live, and then archived, webcast of the conference call, available through Excel Maritime Carriers' website (www.excelmaritime.com). Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

- Financial and Other Financial Data Follow -

               EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
                CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
  FOR THE THREE- MONTH PERIODS ENDED JUNE 30, 2008 (as adjusted) AND 2009
    (In thousands of U.S. Dollars, except for share and per share data)



                                                      Three-Month period
                                                        ended June 30,
                                                      2008
                                                  (as adjusted)    2009
                                                    ----------  ----------
REVENUES:
Voyage revenues                                        131,967      98,439
Time Charter fair value amortization                    73,298      75,309
Revenue from managing related party vessels                232         112
                                                    ----------  ----------
Revenue from operations                                205,497     173,860
                                                    ----------  ----------
EXPENSES:
  Voyage expenses                                        5,976       5,051
  Charter hire expense                                   6,836       8,185
  Charter hire amortization                              8,315       9,970
  Commissions to a related party                           954         567
  Vessel operating expenses                             19,080      21,065
  Depreciation expense                                  29,649      30,733
  Dry-docking and special survey cost                    3,695       3,826
  General and administrative expenses                   11,065       9,574
                                                    ----------  ----------
                                                        85,570      88,971
                                                    ----------  ----------
  Income from operations                               119,927      84,889
                                                    ----------  ----------
OTHER INCOME (EXPENSES):
  Interest and finance costs                           (17,746)    (14,651)
  Interest income                                        1,986         166
  Interest rate swap gain                               19,534       7,627
  Foreign exchange loss                                    (70)       (125)
  Other, net                                               (61)        263
                                                    ----------  ----------
  Total other income (expenses), net                     3,643      (6,720)
                                                    ----------  ----------
Net income before taxes and income from investment
 in affiliate                                          123,570      78,169
                                                    ----------  ----------
US Source Income taxes                                    (244)       (177)
                                                    ----------  ----------
Net income before income from investment in
 affiliate                                             123,326      77,992
                                                    ----------  ----------
Income from Investment in affiliate                        175           -
                                                    ----------  ----------
Net income                                             123,501      77,992
                                                    ----------  ----------
Less: Loss assumed by the non controlling interests         51          46
                                                    ----------  ----------
Net income attributable to Excel Maritime Carriers
 Ltd.                                                  123,552      78,038
                                                    ==========  ==========
Earnings per common  share, basic                   $     3.10  $     1.10
                                                    ==========  ==========
Weighted average number of shares, basic            39,836,681  70,986,320
                                                    ==========  ==========
Earnings per common   share, diluted                $     3.06  $     1.05
                                                    ==========  ==========
Weighted average number of shares, diluted          40,376,857  74,199,723
                                                    ==========  ==========


               EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
                CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
  FOR THE SIX- MONTH PERIODS ENDED JUNE 30, 2008 (as adjusted) AND 2009
    (In thousands of U.S. Dollars, except for share and per share data)



                                                      Six-month period
                                                       ended June 30,
                                                       2008
                                                  (as adjusted)    2009
                                                    ----------  ----------
REVENUES:
Voyage revenues                                        201,491     191,245
Time Charter fair value amortization                    73,298     204,446
Revenue from managing related party vessels                465         277
                                                    ----------  ----------
Revenue from operations                                275,254     395,968
                                                    ----------  ----------

EXPENSES:
  Voyage expenses                                       10,144       9,877
  Charter hire expense                                   6,836      16,281
  Charter hire amortization                              8,315      19,816
  Commissions to a related party                         1,822       1,025
  Vessel operating expenses                             28,127      42,210
  Depreciation expense                                  37,641      61,266
  Dry-docking and special survey cost                    7,324       7,932
  General and administrative expenses                   14,832      16,865
                                                    ----------  ----------
                                                       115,041     175,272
                                                    ----------  ----------
  Gain on sale of vessel                                     -          61

  Income from operations                               160,213     220,757
                                                    ----------  ----------

OTHER INCOME (EXPENSES):
  Interest and finance costs                           (23,476)    (32,674)
  Interest income                                        4,625         242
  Interest rate swap gain                               17,631       8,185
  Foreign exchange loss                                   (208)        (37)
  Other, net                                              (133)       (177)
                                                    ----------  ----------
  Total other income (expenses), net                    (1,561)    (24,461)
                                                    ----------  ----------
Net income before taxes and income from investment
 in affiliate                                          158,652     196,296
                                                    ----------  ----------
US Source Income taxes                                    (489)       (353)
                                                    ----------  ----------
Net income before income from investment in
 affiliate                                             158,163     195,943
                                                    ----------  ----------
Income from Investment in affiliate                        404           -
                                                    ----------  ----------
Net income                                             158,567     195,943
                                                    ----------  ----------
Less: Loss assumed by the non controlling interests         51          87
                                                    ----------  ----------
Net income attributable to Excel Maritime Carriers
 Ltd.                                                  158,618     196,030
                                                    ==========  ==========
Earnings per common  share, basic                   $     5.31  $     3.35
                                                    ==========  ==========
Weighted average number of shares, basic            29,895,936  58,480,526
                                                    ==========  ==========
Earnings per common   share, diluted                $     5.28  $     3.27
                                                    ==========  ==========
Weighted average number of shares, diluted          30,048,407  59,935,790
                                                    ==========  ==========



               EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
     AT DECEMBER 31, 2008 (as adjusted) AND JUNE 30, 2009 (unaudited)
                      (In thousands of U.S. Dollars)



                                                     December
                                                     31, 2008    June 30,
ASSETS                                            (as adjusted)    2009
                                                    ----------  ----------
CURRENT ASSETS:
  Cash and cash equivalents                            109,792      86,511
  Restricted cash                                           53          44
  Accounts receivable                                   10,247       4,130
  Other current assets                                   6,958       8,298
                                                    ----------  ----------
  Total current assets                                 127,050      98,983
                                                    ----------  ----------
FIXED ASSETS:
  Vessels, net                                       2,786,717   2,722,095
  Advances for vessels under construction              106,898     115,305
  Office furniture and equipment, net                    1,722       1,590
                                                    ----------  ----------
  Total fixed assets, net                            2,895,337   2,838,990
                                                    ----------  ----------
OTHER NON CURRENT ASSETS:
  Time charters acquired, net                          264,263     244,447
  Restricted cash                                       24,947      27,311
  Investment in affiliate                                5,212           -
                                                    ----------  ----------
      Total assets                                   3,316,809   3,209,731
                                                    ==========  ==========

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:
  Current portion of long-term debt, net of
   deferred financing fees                             220,410     121,107
  Accounts payable                                       6,440       7,540
  Other current liabilities                             47,934      49,613
  Current portion of financial instruments              40,119      29,163
                                                    ----------  ----------
    Total current liabilities                          314,903     207,423
                                                    ----------  ----------
Long-term debt, net of current portion and net of
 deferred financing fees                             1,256,707   1,222,394
Time charters acquired, net                            650,781     446,335
Financial instruments                                   41,020      30,974
                                                    ----------  ----------
    Total liabilities                                2,263,411   1,907,126
                                                    ----------  ----------
Commitments and contingencies                                -           -
                                                    ----------  ----------
STOCKHOLDERS’ EQUITY:
  Preferred stock                                            -           -
  Common stock                                             461         718
  Additional paid-in capital                           944,207     994,354
  Other Comprehensive Loss                                 (74)        (74)
  Retained earnings                                     94,063     290,093
  Less: Treasury stock                                    (189)       (189)
                                                    ----------  ----------
  Excel Maritime Carriers Ltd. Stockholders’ equity  1,038,468   1,284,902
                                                    ----------  ----------
  Non-controlling interests                             14,930      17,703
                                                    ----------  ----------
  Total Stockholders’ Equity                         1,053,398   1,302,605
                                                    ----------  ----------
      Total liabilities and stockholders’ equity     3,316,809   3,209,731
                                                    ==========  ==========




               EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
              CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS
  FOR THE SIX- MONTH PERIODS ENDED JUNE 30, 2008 (as adjusted) AND 2009
                      (In thousands of U.S. Dollars)


                                                      Six-month period
                                                        ended June 30,
                                                       2008
                                                  (as adjusted)    2009
                                                    ----------  ----------
Cash Flows from Operating Activities:
  Net income                                           158,618     196,030
  Adjustments to reconcile net income to net cash
   provided by operating activities                    (41,393)   (134,148)
  Changes in operating assets and liabilities:
    Operating assets                                      (242)      4,777
    Operating liabilities                               18,337       2,779
                                                    ----------  ----------
Net Cash provided by Operating Activities              135,320      69,438
                                                    ----------  ----------
Cash Flows from Investing Activities:
    Acquisition of Quintana, net of cash acquired     (692,420)          -
    Advances for vessels under construction             (8,820)     (8,407)
    Additions to vessel cost                              (341)       (114)
    Additions to office furniture and equipment           (193)        (72)
    Proceeds received from Oceanaut’s liquidation            -       5,212
    Proceeds from sale of vessel                             -       3,735
                                                    ----------  ----------
Net cash provided by (used in) Investing Activities   (701,774)        262
                                                    ----------  ----------
Cash Flows from Financing Activities:
    Increase in restricted cash                       (109,992)     (2,355)
    Proceeds from long-term debt                     1,405,642       5,067
    Repayment of long-term debt                       (817,845)   (141,707)
    Payment of financing costs                         (14,959)     (1,938)
    Share capital issuance costs                          (120)          -
    Issuance of common stock                                 -      45,000
    Non controlling interests                                -       2,860
    Dividends paid                                     (12,680)          -
                                                    ----------  ----------
Net cash provided by (used in) Financing Activities    450,046     (93,073)
                                                    ----------  ----------
Net decrease in cash and cash equivalents             (116,408)    (23,281)
Cash and cash equivalents at beginning of period       243,672     109,792
                                                    ----------  ----------
Cash and cash equivalents at end of the period         127,264      86,511
                                                    ==========  ==========

SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid during the period for:
    Interest payments                                   11,152      33,761
    U.S. Source income taxes                               533         448

  Non-cash financing activities
    Class A common stock issued as part of the
     consideration paid for the acquisition of
     Quintana                                          682,333           -



                      Adjusted EBITDA Reconciliation
                (all amounts in thousands of U.S. Dollars)

                                    Three-month period  Six-month period
                                      ended  June 30,     ended June 30,
                                      2008      2009      2008      2009
Net income                           123,552    78,038   158,618   196,030
Interest and finance costs, net (1)   19,001    21,116    22,238    45,248
Depreciation                          29,649    30,733    37,641    61,266
Dry-dock and special survey cost       3,695     3,826     7,324     7,932
Unrealized swap gain                 (22,775)  (14,258)  (21,018)  (21,001)
Amortization of T/C fair values (2)  (64,983)  (65,339)  (64,983) (184,630)
Stock based compensation               2,589     2,993     2,712     5,404
Gain on sale of vessel                     -         -         -       (61)
Taxes                                    244       177       489       353
                                    --------  --------  --------  --------
Adjusted EBITDA                       90,972    57,286   143,021   110,541
                                    ========  ========  ========  ========


(1) Includes swap interest paid and received
(2) Analysis:

                              Three-month period      Six-month period
                                ended  June 30,         ended June 30,
                               2008        2009        2008        2009
Non-cash amortization of
 unfavorable time charters
 in revenue                    (73,298)    (75,309)    (73,298)   (152,972)
Non-cash accelerated
 amortization of M/V Sandra
 and Coal Pride time
 charter fair value due to
 charter termination                 -           -           -     (51,474)
Non-cash amortization of
 favorable time charters in
 charter hire expense            8,315       9,970       8,315      19,816
                            ----------  ----------  ----------  ----------
                               (64,983)    (65,339)    (64,983)   (184,630)
                            ==========  ==========  ==========  ==========


            Reconciliation of Net Income to Adjusted Net Income
                (all amounts in thousands of U.S. Dollars)


                                 Three-month period     Six-month period
                                  ended  June 30,         ended June 30,
                                  2008       2009       2008       2009
Net income                        123,552     78,038    158,618    196,030
Unrealized swap gain              (22,775)   (14,258)   (21,018)   (21,001)
Gain on sale of vessel                  -          -          -        (61)
                                ---------  ---------  ---------  ---------
Adjusted Net income               100,777     63,780    137,600    174,968
                                =========  =========  =========  =========


  Reconciliation of Earnings per Share (Diluted) to Adjusted Earnings per
                              Share (Diluted)
                      (all amounts in  U.S. Dollars)

                                     Three-month period   Six-month period
                                       ended June 30,     ended June 30,
                                      2008      2009      2008      2009
Earnings per Share (Diluted)        $   3.06  $   1.05  $   5.28  $   3.27
Unrealized swap gain                   (0.56)    (0.19)    (0.70)    (0.35)
Gain on sale of vessel                     -         -         -         -
                                    --------  --------  --------  --------
Adjusted Earnings per Share
 (Diluted)                          $   2.50  $   0.86  $   4.58  $   2.92
                                    ========  ========  ========  ========

Accounting changes:

Change in Dry-docking and Special survey accounting policy

Effective January 1, 2009, we changed the method of accounting for dry-docking and special survey costs from the deferral method, under which costs associated with the dry-docking and special survey of a vessel are deferred and charged to expense over the period to a vessel's next scheduled dry-docking, to the direct expense method, under which the dry-docking and special survey costs will be expensed as incurred. We consider this as a preferable method because (i) it eliminates the subjectivity in the financial statements that occurs when determining which costs are eligible for deferral; such elimination of subjectivity enhances transparency in the balance sheet; (ii) is consistent with recent accounting policy and informal trends in the shipping industry and (iii) is consistent with the asset and liability framework in the concept statements.

Adoption of new accounting pronouncements

Effective January 1, 2009, we adopted FASB Staff Position, Accounting Principles Board 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) ("FSP APB 14-1"). FSP APB 14-1 requires issuers of convertible debt to account separately for the liability and equity components in a manner that reflects the issuers' non-convertible debt borrowing rate. The resulting debt discount is amortized over the period the debt is expected to be outstanding as additional non-cash interest expense. FSP APB 14-1 requires retrospective restatement of all periods presented with the cumulative effect of the change in accounting principles on prior periods recognized in retained earnings as of the beginning of the first period presented.

Effective January 1, 2009, we adopted Statement of Financial Accounting Standard ("SFAS") No. 160, Accounting and Reporting of Non-controlling Interest in Consolidated Financial Statements, an Amendment of ARB No. 51. SFAS No. 160 amends Accounting Research Bulletin ("ARB") No. 51, to establish accounting and reporting standards for the non-controlling interest in a subsidiary and for the deconsolidation of a subsidiary. This standard defines a non-controlling interest, previously called a minority interest, as the portion of equity in a subsidiary not attributable, directly or indirectly, to us.

With the exception of SFAS 160 which requires retrospective application only in the presentation and disclosure requirements, the other two accounting changes require retrospective application for all periods presented and were effected in the accompanying unaudited interim consolidated financial statements in accordance with FASB Statement No. 154 "Accounting Changes and Error Corrections", which requires that an accounting change should be retrospectively applied to all prior periods presented, unless it is impractical to determine the prior period impacts.

Accordingly, the previously reported 2008 financial information has been recast to account for these changes.

Disclosure of Non-GAAP Financial Measures

Adjusted EBITDA represents net income plus net interest expense, depreciation, amortization, and taxes eliminating the effect of deferred stock-based compensation, gains or losses on the sale of vessels, amortization of deferred time charter assets and liabilities and unrealized gains or losses on swaps, which are significant non-cash items. Following the Company's change in the method of accounting for dry docking and special survey costs, such costs are also included in the adjustments to EBITDA for comparability purposes. The Company's management uses adjusted EBITDA as a performance measure. The Company believes that adjusted EBITDA is useful to investors, because the shipping industry is capital intensive and may involve significant financing costs. Adjusted EBITDA is not a measure recognized by GAAP and should not be considered as an alternative to net income, operating income or any other indicator of a Company's operating performance required by GAAP. The Company's definition of adjusted EBITDA may not be the same as that used by other companies in the shipping or other industries.

Adjusted Net Income represents net income plus unrealized gains or losses from our swap transactions and any gains or losses on sale of vessels, both of which are significant non-cash items. Adjusted Earnings per Share (diluted) represents Adjusted Net Income divided by weighted average shares outstanding (diluted).

These measures are "non-GAAP financial measures" and should not be considered substitutes for net income or earnings per share (diluted), respectively, as reported under GAAP. The Company has included an adjusted net income and adjusted earnings per share (diluted) calculation in this period in order to facilitate comparability between the Company's performance in the reported periods and its performance in prior periods.

About Excel Maritime Carriers Ltd

Excel is an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes, such as iron ore, coal and grains, as well as bauxite, fertilizers and steel products. Excel owns a fleet of 40 vessels and, together with 7 Panamax vessels under bareboat charters, operates 47 vessels (5 Capesize, 14 Kamsarmax, 21 Panamax, 2 Supramax and 5 Handymax vessels) with a total carrying capacity of approximately 3.9 million DWT. Excel Class A common shares have been listed since September 15, 2005 on the New York Stock Exchange (NYSE) under the symbol EXM and, prior to that date, were listed on the American Stock Exchange (AMEX) since 1998. For more information about the Company, please go to our corporate website www.excelmaritime.com.

Forward-Looking Statement

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct.

These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to the ability to changes in the demand for dry bulk vessels, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

APPENDIX

The following key indicators highlight the Company's financial and operating performance for the three and six months ended June 30, 2009 compared to the corresponding periods in the prior year. In the table below, the Panamax fleet includes both Kamsarmax and Panamax vessels and the Handymax fleet includes both Supramax and Handymax vessels:

Vessel Employment
(In U.S. Dollars per day, unless otherwise stated)

                                              HANDYSIZE
            CAPESIZE FLEET  PANAMAX FLEET       FLEET         TOTAL FLEET
                          Three-month period ended June 30,
             2008    2009    2008    2009    2008    2009    2008    2009
            ------  ------  ------  ------  ------  ------  ------  ------

Total
 calendar
 days          304     455   2,810   3,185     728     637   3,842   4,277
Available
 days under
 period
 charter       274     434   2,516   2,275     131     136   2,921   2,845
Available
 days under
 spot/short
 duration
 charter        30       -     249     845     552     501     831   1,346
Utilization  100.0%   95.4%   98.4%   98.0%   93.8%  100.0%   97.7%   97.8%
Time
 charter
 equivalent
 per ship
 per day-
 period     47,207  43,041  25,938  23,918  35,018  16,376  28,342  26,472
Time
 charter
 equivalent
 per ship
 per day-
 spot      118,100       -  53,975  14,097  45,824  11,200  50,860  13,018

Time
 charter
 equivalent
 per ship
 per day-
 weighted
 average    54,150  43,041  28,467  21,259  43,753  12,305  33,325  22,148
Net daily
 revenue
 per ship
 per day    54,150  41,009  28,011  20,823  41,022  12,305  32,545  21,702
Vessel
 operating
 expenses
 per ship
 per day    (4,485) (5,693) (4,857) (4,812) (5,588) (4,943) (4,966) (4,925)
Net
 Operating
 cash flows
 per ship
 per day
 before G&A
 expenses   49,665  35,316  23,154  16,011  35,434   7,362  27,579  16,777
            ------  ------  ------  ------  ------  ------  ------  ------



Vessel Employment
(In U.S. Dollars per day, unless otherwise stated)

                                              HANDYSIZE
            CAPESIZE FLEET  PANAMAX FLEET       FLEET         TOTAL FLEET
                            Six-month period ended June 30,
             2008    2009    2008    2009    2008    2009    2008    2009
            ------  ------  ------  ------  ------  ------  ------  ------

Total
 calendar
 days          304     905   3,720   6,335   1,456   1,341   5,480   8,581
Available
 days under
 period
 charter       274     884   3,186   4,626     424     276   3,884   5,786
Available
 days under
 spot/short
 duration
 charter        30       -     431   1,610     951     969   1,412   2,579
Utilization  100.0%   97.7%   97.2%   98.4%   94.4%   92.8%   96.6%   97.5%
Time
 charter
 equivalent
 per ship
 per
 day-period 47,207  42,745  27,313  24,084  36,844  16,564  29,758  26,574
Time
 charter
 equivalent
 per ship
 per
 day-spot  118,100       -  62,561  11,432  45,687   8,424  52,370  10,302
Time
 charter
 equivalent
 per ship
 per day-
 weighted
 average    54,150  42,745  31,516  20,817  42,959  10,230  35,786  21,559
Net daily
 revenue
 per ship
 per day    54,150  41,731  30,646  20,495  40,564   9,496  34,585  21,015
Vessel
 operating
 expenses
 per ship
 per day    (4,485) (5,426) (5,190) (4,811) (5,121) (5,086) (5,132) (4,919)
Net
 Operating
 cash flows
 per ship
 per day
 before G&A
 expenses   49,665  36,305  25,456  15,684  35,443   4,410  29,453  16,096
            ------  ------  ------  ------  ------  ------  ------  ------

Glossary of Terms

Average number of vessels: This is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of calendar days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.

Total calendar days: We define these as the total days we owned the vessels in our fleet for the relevant period including off hire days associated with major repairs, dry dockings or special or intermediate surveys. Calendar days are an indicator of the size of the fleet over a period and affect both the amount of revenues and the amount of expenses that are recorded during a period.

Available days: These are the calendar days less the aggregate number of off-hire days associated with major repairs, dry docks or special or intermediate surveys and the aggregate amount of time spent positioning vessels and any unforeseen off-hire. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenue.

Available days under spot / short duration charter: This is defined as available days under spot charters and / or time charters of duration of less than six months.

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

Time charter equivalent per ship per day ("TCE"): This is a measure of the average daily revenue performance of a vessel on a per voyage basis. Our method of calculating TCE is consistent with industry standards and is determined by dividing revenue generated from voyage charters net of voyage expenses by available days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, as well as commissions. Time charter equivalent revenue and TCE rate are not measures of financial performance under U.S. GAAP and may not be comparable to similarly titled measures of other companies. However, TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., spot voyage charters, time charters and bareboat charters) under which the vessels may be employed between the periods.

                    Time Charter Equivalent Calculation
 (all amounts in thousands of U.S. Dollars, except for Daily Time Charter
                      Equivalent and available days)

                                          For the            For the
                                    three-month period  six-month period
                                      ended June 30,      ended June 30,
                                    ------------------  ------------------
                                      2008      2009      2008      2009
                                    --------  --------  --------  --------
Voyage revenues                      131,967    98,439   201,491   191,245
Voyage expenses                       (6,930)   (5,618)  (11,966)  (10,902)
                                    --------  --------  --------  --------
Time Charter Equivalent              125,037    92,821   189,525   180,343
                                    ========  ========  ========  ========
Total available days                   3,752     4,191     5,296     8,365
Daily Time charter equivalent       $ 33,325  $ 22,148  $ 35,786  $ 21,559

Net daily revenue: We define this as the daily TCE rate including idle time.

Daily vessel operating expenses: This includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs and is calculated by dividing vessel operating expenses by total calendar days for the relevant time period.

Daily general and administrative expense: This is calculated by dividing general and administrative expense by total calendar days for the relevant time period.

Expected Amortization Schedule for Fair Valued Time Charters for Next Year
(in USD millions)                             3Q’09 4Q’09 1Q’10 2Q’10 Total

Amortization of unfavorable time charters (1)  76.1  72.7  70.8  69.6 289.2
Amortization of favorable time charters (2)    10.1  10.1   9.9  10.1  40.2

(1) Adjustment to Revenue from operations i.e. increases revenues

(2) Adjustment to Charter hire expenses i.e. increases charter hire expense

                                          Year   Charter      Average
Vessel Name                        Dwt   Built    Type    Expiration Date

Iron Miner                       177,931    2007  Period     February 2012
Kirmar                           164,218    2001  Period        April 2013
Iron Beauty                      164,218    2001  Period          May 2010
Lowlands Beilun                  170,162    1999  Period          May 2010
Sandra                           180,274    2008  Period September 2010 (1)
Total Capesize                   856,803
Iron Manolis                      82,269    2007  Period     December 2010
Iron Brooke                       82,594    2007  Period     December 2010
Iron Lindrew                      82,598    2007  Period     December 2010
Coal Hunter                       82,298    2006  Period     December 2010
Pascha                            82,574    2006  Period     December 2010
Coal Gypsy                        82,221    2006  Period     December 2010
Iron Anne                         82,220    2006  Period     December 2010
Iron Vassilis                     82,257    2006  Period     December 2010
Iron Bill                         82,187    2006  Period     December 2010
Santa Barbara                     82,266    2006  Period     December 2010
Ore Hansa                         82,209    2006  Period     December 2010
Iron Kalypso                      82,224    2006  Period     December 2010
Iron Fuzeyya                      82,209    2006  Period     December 2010
Iron Bradyn                       82,769    2005  Period     December 2010
                                 1,152,-
Total Kamsarmax                      895
Grain Harvester                   76,417    2004  Period     December 2010
Grain Express                     76,466    2004  Period     December 2010
Iron Knight                       76,429    2004  Period     December 2010
Coal Pride                        72,493    1999    Spot
Isminaki                          74,577    1998    Spot
Angela Star                       73,798    1998    Spot
Elinakos                          73,751    1997    Spot
Happy Day                         71,694    1997    Spot
Iron Man (A)                      72,861    1997  Period          May 2010
Coal Age (A)                      72,824    1997    Spot
Fearless I (A)                    73,427    1997    Spot
Barbara (A)                       73,307    1997  Period         July 2010
Linda Leah (A)                    73,317    1997    Spot
King Coal (A)                     72,873    1997  Period         July 2011
Coal Glory (A)                    73,670    1995  Period     December 2009
Powerful                          70,083    1994    Spot
First Endeavour                   69,111    1994    Spot
Rodon                             73,656    1993    Spot
Birthday                          71,504    1993  Period         July 2010
Renuar                            70,155    1993    Spot
Fortezza                          69,634    1993    Spot
                                 1,532,-
Total Panamax                        047
July M                            55,567    2005    Spot
Mairouli                          53,206    2005  Period     December 2009
Total Supramax                   108,773
Emerald                           45,588    1998    Spot
Princess I                        38,858    1994    Spot
Marybelle                         42,552    1987    Spot
Attractive                        41,524    1985    Spot
Lady                              41,090    1985    Spot
Total Handymax                   209,612
Total Fleet                    3,860,130
Average age                              9.2 Yrs



Fleet to be delivered          Type       Dwt       Estimated delivery (B)
---------------------------    --------   -------   ----------------------
Christine (D)                  Capesize   180,000   March 2010
Hope (E)                       Capesize   181,000   November 2010
Lillie (E)                     Capesize   181,000   December 2010
---------------------------               -------
Total fleet to be delivered               542,000



Fleet to be delivered (c)      Type       Dwt       Estimated delivery (B)
---------------------------    --------   -------   ----------------------
Fritz (E)                      Capesize   180,000   May 2010
Benthe (E)                     Capesize   180,000   June 2010
Gayle Frances (E)              Capesize   180,000   July 2010
Iron Lena (E)                  Capesize   180,000   August 2010

(1) A second charter on the vessel has been fixed commencing upon completion of her current charter and through February 2016.

(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.

© No refund guarantee has been received for these newbuildings and Excel does not believe that the respective new building contracts will materialize. There can be no assurance that the vessels will be delivered timely or at all.

(D) Excel holds a 42.8% interest in the joint venture that will own the vessel.

(E) Excel holds a 50% interest in the joint ventures that will own these vessels.

For further details on the fleet and their employment please refer to our website at www.excelmaritime.com

Contact Information

  • Contacts:


    Investor Relations / Financial Media:
    Nicolas Bornozis
    President
    Capital Link, Inc.
    230 Park Avenue - Suite 1536
    New York, NY 10160, USA
    Tel: (212) 661-7566
    Fax: (212) 661-7526

    E-Mail: excelmaritime@capitallink.com
    www.capitallink.com

    Company:
    Lefteris Papatrifon
    Chief Financial Officer
    Excel Maritime Carriers Ltd.
    17th Km National Road Athens-Lamia & Finikos Street
    145 64 Nea Kifisia
    Athens, Greece
    Tel: 011-30-210-62-09-520
    Fax: 011-30-210-62-09-528

    E-Mail: ir@excelmaritime.com
    www.excelmaritime.com