SOURCE: Excel Maritime

Excel Maritime

August 28, 2012 16:05 ET

Excel Maritime Reports Results for the Second Quarter and Six Month Period Ended June 30, 2012

ATHENS, GREECE--(Marketwire - Aug 28, 2012) - Excel Maritime Carriers Ltd (NYSE: EXM) ("Excel"), an owner and operator of dry bulk carriers and an 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, 2012.

Financial highlights

             
    3-months ended
June 30,
    6-months ended
June 30,
 
    2011     2012     2011     2012  
    (amounts in millions of U.S. Dollars, except per share data and daily TCE)  
Voyage Revenues   $ 92.0     $ 63.1     $ 189.2     $ 127.2  
Net Loss   $ (16.0 )   $ (33.4 )   $ (17.0 )   $ (70.0 )
Adjusted Net Loss   $ (5.6 )   $ (36.4 )   $ (5.1 )   $ (72.0 )
Losses per Share- Basic and Diluted   $ (0.19 )   $ (0.37 )   $ (0.20 )   $ (0.79 )
Adjusted Losses per Share- Basic and Diluted   $ (0.07 )   $ (0.41 )   $ (0.06 )   $ (0.81 )
Adjusted EBITDA   $ 44.0     $ 17.7     $ 92.0     $ 39.9  
Time Charter Equivalent (TCE) per day   $ 18,932     $ 12,871     $ 19,279     $ 13,446  
                                 

A reconciliation of the non-GAAP measures discussed above is included in a later section of this release.

Corporate highlights and Recent developments

Deferral of loan installments: In accordance with the $1.4 billion credit facility amendment reached in March 2012, we exercised our option and deferred the entire loan installments of $24.3 million each, originally due on April 2, 2012 and July 2, 2012, to the balloon payment of the facility in April 2016.

Equity Offering: On May 7, 2012, we entered into separate sales agreements with each of Deutsche Bank Securities Inc. and Knight Capital Americas, L.P., as sales agents, under which we may sell an aggregate of up to $35.0 million in gross proceeds of our Class A common stock, par value $0.01, from time to time. (Please refer to our current report on Form 6-K filed with the SEC on May 7, 2012 for a detailed discussion of the foregoing program.) As of August 24, 2012, we sold 5,831,139 shares of our Class A common stock through the offering discussed above, raising net proceeds of $4.0 million, after deducting issuance costs of $0.3 million, including sales agents' commissions of 2.5% and other issuance expenses.

Fleet Coverage

     
Fleet Coverage, as of August 24, 2012   Full Year '12
Capesize Fleet   100%
Kamsarmax / Panamax Fleet   82%
Entire Fleet - Fixed Charters   83%
% of Fixed Charters with upside participation   21%
     

As of August 24, 2012, we have secured contract coverage for 100% of the available days of our Capesize vessels and 82% of the available days of our Kamsarmax/Panamax vessels for the current year ending December 31, 2012. With respect to the entire fleet, 83% of the available days of 2012 have been fixed, 21% of which are under contracts which offer an upside potential through profit sharing arrangements or index-linked structures and hedge against downside price risk through floor protection.

Vessel Fixtures

In May 2012, we entered into four new period time charter agreements as follows:

  • The M/V Grain Express (76,466 dwt; built in 2004) was fixed for 10-13 months at a gross daily rate of $11,000;

  • The M/V Iron Vassilis (82,257 dwt; built in 2006) was fixed for 10-13 months at a gross daily rate of $11,000;

  • The M/V Mairouli (53,206 dwt; built in 2005) was fixed for 4-6 months at a gross daily rate of $10,600;

  • The M/V Princess I (38,858 dwt; built in 1994) was fixed for 4-6 months at a gross daily rate of $9,000.

Management Commentary:

Pavlos Kanellopoulos, Chief Financial Officer of Excel, stated, "In the face of challenging conditions we are continuing our strategy of cost containment and disciplined chartering policies. Excel has taken proactive steps to address the weak market environment since the beginning of the year, first by agreeing with our lenders to defer installments and waive covenants on our existing credit facilities and more recently raising incremental capital to strengthen our balance sheet. Our industry is trying to cope with excess tonnage and increased uncertainty in the global economy. Unfortunately, so far we have not seen any significant increase in scrapping which would help moderate the pressure from vessel deliveries, leading to a challenging near term outlook for the markets that we service. We continue to believe a significant increase in vessel scrapping and restraint in vessel ordering would lead to a faster recovery in freight rates in the future.''

Second Quarter 2012 Results:

Excel reported voyage revenues for the second quarter of 2012 amounting to $63.1 million compared to $92.0 million for the same period in 2011, a decrease of approximately 31.4%.

Adjusted EBITDA for the second quarter of 2012 was $17.7 million compared to $44.0 million for the second quarter of 2011, a decrease of approximately 59.8%.

Net loss for the quarter amounted to $33.4 million, or $0.37 per weighted average basic and diluted share, compared to a net loss of $16.0 million, or $0.19 per weighted average basic and diluted share, in the second quarter of 2011.

The second quarter 2012 results include a non-cash unrealized gain on derivative financial instruments of $3.0 million compared to a non-cash unrealized loss on derivative financial instruments of $1.3 million in the corresponding period in 2011. In addition, the second quarter 2012 results include a non-cash loss of $1.0 million relating to the valuation of the warrants and the put option on the preferred shares under the back stop agreement ("Back Stop Agreement Valuation") entered into in connection with the amendment of our $1.4 billion credit facility earlier this year.

The above net results also include the amortization of a deferred asset for below market time charters that was recorded by Excel upon acquiring Quintana Maritime Limited ("Quintana") on April 15, 2008. This amortization resulted in income of $1.0 million and $0.9 million for the second quarter of 2012 and 2011, respectively. In addition, the second quarter 2011 results include a non-cash loss of $10.0 million relating to the amortization of a deferred liability for favorable time charters that was recorded when Excel acquired Quintana.

Adjusted net loss, excluding all the above items, for the second quarter of 2012 amounted to $36.4 million, or $0.41 per weighted average basic and diluted share, compared to an adjusted net loss, excluding all the above items, for the second quarter of 2011 of $5.6 million, or $0.07 per weighted average basic and diluted share.

The above adjusted net loss also includes the amortization of stock-based compensation expense of $1.0 million and $2.0 million for the quarters ended June 30, 2012 and 2011, respectively.

An average of 47.0 and 48.0 vessels were operated during the second quarter of 2012 and 2011, respectively, earning a blended average time charter equivalent rate of $12,871 and $18,932 per day, respectively.

A reconciliation of adjusted EBITDA to net loss, adjusted net loss to net loss, and adjusted losses per Share Basic and Diluted to losses per Share Basic and Diluted, as well as a calculation of the TCE, is provided in a later section of this press release.

Six Months Ended June 30, 2012 Results:

Excel reported voyage revenues for the six months to June 30, 2012 amounting to $127.2 million as compared to $189.2 million for the same period in 2011, a decrease of approximately 32.8%.

Adjusted EBITDA for the period was $39.9 million compared to $92.0 million for the respective period of 2011, a decrease of approximately 56.6%.

Net loss for the six month period ended June 30, 2012 amounted to $70.0 million, or $0.79 per weighted average basic and diluted share, compared to a net loss of $17.0 million, or $0.20 per weighted average basic and diluted share, for the six month period ended June 30, 2011.

The results for the six month period ended June 30, 2012 include a non-cash unrealized gain on derivative financial instruments of $6.5 million compared to a non-cash unrealized gain on derivative financial instruments of $5.0 million in the corresponding period in 2011.

In addition, the results, for the six month period ended June 30, 2012, include a non-cash loss of $6.4 million relating to the Back Stop Agreement Valuation.

The above net results also include the amortization of a deferred asset for below market time charters that was recorded by Excel upon acquiring Quintana on April 15, 2008. This amortization resulted in income of $1.9 million and $1.7 million for the six-month periods ended June 30, 2012 and 2011, respectively. In addition, the results for the six month period ended June 30, 2011 include a non-cash loss of $19.8 million relating to the amortization of a deferred liability for favorable time charters that was recorded when Excel acquired Quintana and a non cash gain in connection with the sale of the M/V Marybelle amounting to $1.3 million.

Adjusted net loss, excluding all the above items, for the six month period ended June 30, 2012 would have amounted to $72.0 million, or $0.81 per weighted average basic and diluted share, compared to an adjusted net loss, excluding all the above items, for the six month period ended June 30, 2011 of $5.1 million, or $0.06 per weighted average basic and diluted share.

The above adjusted net results also include the amortization of stock based compensation expense of $1.6 million and $3.3 million, for the six month period ended June 30, 2012 and 2011, respectively.

An average of 47.0 and 48.2 vessels were operated during the six month period ended June 30, 2012 and 2011, respectively, earning a blended average time charter equivalent rate of $13,446 and $19,279 per day, respectively.

A reconciliation of adjusted EBITDA to net loss, adjusted net loss to net loss, and adjusted losses per Share Basic and Diluted to losses per Share Basic and Diluted, as well as a calculation of the TCE, is provided in a later section of this press release.

Conference Call Details:

Tomorrow August 29, 2012 at 08:30 A.M. EDT, the Company's management will host a conference call to discuss these 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 September 5, 2012 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 Excels' website (www.excelmaritime.com). Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

   
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES  
CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS  
FOR THE QUARTER ENDED JUNE 30, 2011 AND 2012  
(In thousands of U.S. Dollars, except for share and per share data)  
   
    Second Quarter  
    2011     2012  
REVENUES:                
Voyage revenues   $ 91,962     $ 63,143  
Time Charter fair value amortization     845       961  
Total Revenues     92,807       64,104  
                 
                 
EXPENSES:                
  Voyage expenses     8,437       8,817  
  Charter hire expense     8,185       8,186  
  Charter hire amortization     9,959       -  
  Commissions to related parties     1,019       706  
  Vessel operating expenses     21,846       20,622  
  Depreciation expense     31,952       31,824  
  Dry-docking and special survey cost     3,131       3,717  
  General and administrative expenses     10,644       8,610  
        95,173       82,482  
                   
  Loss from operations     (2,366 )     (18,378 )
                 
OTHER INCOME (EXPENSES):                
  Interest and finance costs     (7,832 )     (13,477 )
  Interest income     403       42  
  Losses on derivative financial instruments     (6,109 )     (2,062 )
  Foreign exchange gains (losses)     (185 )     158  
  Other, net     631       692  
  Total other expenses, net     (13,092 )     (14,647 )
                 
Net loss before taxes and income earned by non controlling interest     (15,458 )     (33,025 )
                 
US Source Income taxes     (252 )     (124 )
                 
Net loss     (15,710 )     (33,149 )
                 
Income earned by non-controlling interest     (287 )     (277 )
                 
Net loss attributable to Excel Maritime Carriers Ltd.   $ (15,997 )   $ (33,426 )
                 
Losses per common share, basic   $ (0.19 )   $ (0.37 )
Weighted average number of shares, basic     83,819,299       89,469,267  
Losses per common share, diluted   $ (0.19 )   $ (0.37 )
Weighted average number of shares, diluted     83,819,299       89,469,267  
                 
   
   
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES  
CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS  
FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2011 AND 2012  
(In thousands of U.S. Dollars, except for share and per share data)  
   
    Six-month period ended
 June 30,
 
    2011     2012  
REVENUES:                
Voyage revenues   $ 189,240     $ 127,219  
Time Charter fair value amortization     1,681       1,924  
Revenue from managing related party vessels     17       -  
Total Revenues     190,938       129,143  
                 
                 
EXPENSES:                
  Voyage expenses     21,557       16,196  
  Charter hire expense     16,281       16,371  
  Charter hire amortization     19,808       -  
  Commissions to related parties     2,092       1,423  
  Vessel operating expenses     42,875       40,150  
  Depreciation expense     63,666       63,695  
  Dry-docking and special survey cost     4,277       12,333  
  General and administrative expenses     17,063       14,707  
        187,619       164,875  
                   
  Gain on sale of vessel     1,274       -  
                   
  Income (loss) from operations     4,593       (35,732 )
                 
OTHER INCOME (EXPENSES):                
  Interest and finance costs     (15,600 )     (30,598 )
  Interest income     824       208  
  Losses on derivative financial instruments     (5,651 )     (3,563 )
  Foreign exchange gains (losses)     (344 )     166  
  Other, net     221       448  
  Total other expenses, net     (20,550 )     (33,339 )
                 
Net loss before taxes and income earned by non controlling interest     (15,957 )     (69,071 )
                 
US Source Income taxes     (504 )     (313 )
                 
Net loss     (16,461 )     (69,384 )
                 
Income earned by non-controlling interest     (560 )     (629 )
                 
Net loss attributable to Excel Maritime Carriers Ltd.   $ (17,021 )   $ (70,013 )
                 
Losses per common share, basic   $ (0.20 )   $ (0.79 )
Weighted average number of shares, basic     83,730,845       88,723,937  
Losses per common share, diluted   $ (0.20 )   $ (0.79 )
Weighted average number of shares, diluted     83,730,845       88,723,937  
                 
   
   
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES  
CONSOLIDATED BALANCE SHEETS  
AT DECEMBER 31, 2011 AND JUNE 30, 2012 (UNAUDITED)  
(In thousands of U.S. Dollars)  
   
ASSETS   December 31,
2011
    June 30,
2012
 
                 
CURRENT ASSETS:                
  Cash and cash equivalents   $ 53,749     $ 27,235  
  Restricted cash     5,700       6,623  
  Accounts receivable     7,004       4,223  
  Other current assets     16,392       16,275  
  Total current assets     82,845       54,356  
                 
FIXED ASSETS:                
  Vessels, net     2,579,285       2,515,874  
  Office furniture and equipment, net     941       718  
  Total fixed assets, net     2,580,226       2,516,592  
                 
OTHER NON CURRENT ASSETS:                
  Other deferred non-current asset     1,108       1,257  
  Restricted cash     57,750       58,250  
                 
      Total assets   $ 2,721,929     $ 2,630,455  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
  Current portion of long-term debt, net of deferred financing fees   $ 104,879     $ 56,510  
  Accounts payable     12,062       12,025  
  Other current liabilities     31,106       33,908  
  Derivative financial instruments     19,453       19,797  
    Total current liabilities     167,500       122,240  
                 
Long-term debt, net of current portion and net of deferred financing fees     952,716       974,848  
Time charters acquired, net     14,633       12,858  
Derivative financial instruments     26,516       19,709  
                 
    Total liabilities     1,161,365       1,129,655  
                 
Commitments and contingencies     -       -  
                 
STOCKHOLDERS' EQUITY:                
  Preferred stock     -       -  
  Common stock     891       930  
  Additional paid-in capital     1,071,263       1,080,797  
  Other Comprehensive loss     (3,064 )     (3,206 )
  Retained earnings     480,081       410,068  
  Less: Treasury stock     (189 )     -  
  Excel Maritime Carriers Ltd. Stockholders' equity     1,548,982       1,488,589  
  Non-controlling interests     11,582       12,211  
  Total Stockholders' Equity     1,560,564       1,500,800  
      Total liabilities and stockholders' equity   $ 2,721,929     $ 2,630,455  
                 
   
   
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES  
CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS  
FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2011 AND 2012  
(In thousands of U.S. Dollars)  
   
    Six-month period ended June 30,  
    2011     2012  
Cash Flows from Operating Activities:                
  Net loss   $ (16,461 )   $ (69,384 )
  Adjustments to reconcile net loss to net cash provided by operating activities     84,129       69,325  
  Changes in operating assets and liabilities:                
    Operating assets     1,874       5,555  
    Operating liabilities     1,831       (1,299 )
Net Cash provided by Operating Activities   $ 71,373     $ 4,197  
                 
Cash Flows from Investing Activities:                
    Advances for vessels under construction     (18,267 )     -  
    Additions to office furniture and equipment     (186 )     (32 )
    Additions to vessels cost     (54 )     (29 )
    Advance from vessel sale     1,500       -  
    Restricted cash-sale of vessel     (1,500 )     -  
    Proceeds from sale of vessel     9,880       -  
Net cash used in Investing Activities   $ (8,627 )   $ (61 )
                 
Cash Flows from Financing Activities:                
    Increase in restricted cash     (9,619 )     (1,423 )
    Proceeds from long-term debt     16,100       -  
    Repayment of long-term debt     (75,409 )     (29,542 )
    Issuance of common stock, net of related issuance costs     -       3,075  
    Payment of financing costs     (9 )     (2,760 )
Net cash used in Financing Activities   $ (68,937 )   $ (30,650 )
                 
Net decrease in cash and cash equivalents     (6,191 )     (26,514 )
Cash and cash equivalents at beginning of period     65,917       53,749  
Cash and cash equivalents at end of the period   $ 59,726     $ 27,235  
                 
SUPPLEMENTAL CASH FLOW INFORMATION:                
  Cash paid during the period for:                
    Interest payments under our credit facilities   $ 10,422     $ 15,573  
    Interest payments under our interest rate swap agreements     12,081       10,163  
    U.S. source income taxes     514       389  
   
   
Adjusted EBITDA Reconciliation  
(all amounts in thousands of U.S. Dollars)  
   
    Three month period
ended June 30,
    Six month period
ended June 30,
 
    2011     2012     2011     2012  
Net loss   $ (15,997 )   $ (33,426 )   $ (17,021 )   $ (70,013 )
Interest and finance costs, net (1)     12,263       18,489       25,406       40,406  
Depreciation     31,952       31,824       63,666       63,695  
Dry-dock and special survey cost     3,131       3,717       4,277       12,333  
Unrealized derivative financial instruments (gain) loss     1,275       (2,992 )     (4,979 )     (6,453 )
Amortization of T/C fair values (2)     9,114       (961 )     18,127       (1,924 )
Stock based compensation     2,017       962       3,330       1,584  
Gain on sale of vessel     -       -       (1,274 )     -  
Taxes     252       124       504       313  
Adjusted EBITDA   $ 44,007     $ 17,737     $ 92,036     $ 39,941  
   
(1) Includes back stop agreement non cash loss and derivative financial instruments paid and received  
(2) Analysis:  
    Three month period
ended June 30,
    Six month period
ended June 30,
 
    2011     2012     2011     2012  
Non-cash amortization of unfavorable time charters in revenue   $ (845 )   $ (961 )   $ (1,681 )   $ (1,924 )
Non-cash amortization of favorable time charters in charter hire expense     9,959       -       19,808       -  
    $ 9,114     $ (961 )   $ 18,127     $ (1,924 )
   
   
Reconciliation of Net loss to Adjusted Net loss  
(all amounts in thousands of U.S. Dollars)  
   
    Three month period
ended June 30,
    Six month period
ended June 30,
 
    2011     2012     2011     2012  
Net loss   $ (15,997 )   $ (33,426 )   $ (17,021 )   $ (70,013 )
Unrealized derivative financial instruments (gain) loss     1,275       (2,992 )     (4,979 )     (6,453 )
Back stop agreement valuation loss     -       989       -       6,358  
Gain on sale of vessel     -       -       (1,274 )     -  
Amortization of T/C fair values     9,114       (961 )     18,127       (1,924 )
Adjusted Net loss   $ (5,608 )   $ (36,390 )   $ (5,147 )   $ (72,032 )
   
   
Reconciliation of losses per Share to Adjusted losses per Share (Basic and Diluted)  
(all amounts in U.S. Dollars)  
   
    Three month period
ended June 30,
    Six month period
ended June 30,
 
    2011     2012     2011     2012  
Losses per share   $ (0.19 )   $ (0.37 )   $ (0.20 )   $ (0.79 )
Unrealized derivative financial instruments (gain) loss     0.01       (0.03 )     (0.06 )     (0.07 )
Back stop agreement valuation loss     -       0.01       -       0.07  
Gain on sale of vessel     -       -       (0.02 )     -  
Amortization of T/C fair values     0.11       (0.02 )     0.22       (0.02 )
Adjusted Losses per share   $ (0.07 )   $ (0.41 )   $ (0.06 )   $ (0.81 )
                                 

Disclosure of Non-GAAP Financial Measures

Adjusted EBITDA represents net income/(loss) attributable to us plus net interest and finance costs, depreciation and taxes, eliminating the effect of 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 derivatives, which are significant non-cash items. Following Excel'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. Excel's management uses adjusted EBITDA as a performance measure. Excel 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. Excel'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/(loss) represents net income/(loss) attributable to us plus unrealized gains or losses from our derivative transactions, back stop agreement valuation losses, any gains or losses on sale of vessels and the elimination of the effect of deferred time charter assets and liabilities, all of which are significant non-cash items. Adjusted Earnings/(losses) per Share (basic and diluted) represents Adjusted Net Income/(loss) divided by the weighted average shares outstanding (basic and diluted).

These measures are "non-GAAP financial measures" and should not be considered to be substitutes for net income/(loss) or earnings/(losses) per share (basic and diluted), respectively, as reported under GAAP. Excel has included an adjusted net loss and adjusted losses per share (basic and diluted) calculation in this period in order to facilitate comparability between Excel'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, one of which, a Capesize vessel, is owned by a joint venture in which Excel holds a 71.4% interest, and, together with seven Panamax vessels under bareboat charters, operates 47 vessels (seven Capesize, 14 Kamsarmax, 21 Panamax, two Supramax and three Handymax vessels) with a total carrying capacity of approximately 4.1 million DWT.

Excel's 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 Excel, 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 Excel's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters.

Words such as "will," "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements.

Although Excel 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 Excel. 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 Excel operates; risks associated with operations outside the United States; and other factors listed from time to time in Excel's filings with the Securities and Exchange Commission. Excel 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 Excel'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, 2012 compared to the corresponding periods in the prior year.

   
Vessel Employment  
(In U.S. Dollars per day, except for days and utilization)  
    Three month period
ended June 30,
    Six month period
ended June 30,
 
    2011     2012     2011     2012  
Calendar days     4,368       4,277       8,719       8,554  
Available days     4,358       4,166       8,589       8,151  
Utilization     99.8 %     97.4 %     98.5 %     95.3 %
Time charter equivalent rate   $ 18,932     $ 12,871     $ 19,279     $ 13,446  
Vessel operating expenses   $ (5,001 )   $ (4,822 )   $ (4,917 )   $ (4,694 )
Net Operating cash flows before G&A expenses   $ 13,931     $ 8,049     $ 14,362     $ 8,752  
                                 

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 formed part of our fleet during that period divided by the number of calendar days in that period.

Total calendar days: We define these as the total days we possessed 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 specific period of time and affect both the amount of revenues and the amount of expenses that are recorded during that period.

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

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 rate ("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 financial performance used by 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 three month period ended June 30,     For the six month period ended June 30,  
    2011     2012     2011     2012  
Voyage revenues   $ 91,962     $ 63,143     $ 189,240     $ 127,219  
Voyage expenses and commissions to related parties     (9,456 )     (9,523 )     (23,649 )     (17,619 )
Total revenue, net of voyage expenses   $ 82,506     $ 53,620     $ 165,591     $ 109,600  
Total available days     4,358       4,166       8,589       8,151  
Daily Time charter equivalent   $ 18,932     $ 12,871     $ 19,279     $ 13,446  
                                 

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.

 
Expected Amortization Schedule for Fair Valued Time Charters for Next Year
 
(in millions of U.S. Dollars)   3Q'12   4Q'12   1Q'13   2Q'13   Total
                               
Amortization of unfavorable time charters (1)   $ 0.9   $ 0.9   $ 0.9   $ 0.9   $ 3.6
                               

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

Fleet List as of August 24, 2012:

                         
   
Vessel Name
 
Dwt
 
Year Built
  Charter Type  
Daily rate
  Average Charter Expiration
1   Mairaki (1)   181,000   2011   Period   $28,000     Apr 2016
2   Christine (1) (2)   180,000   2010   Period   $25,000     Jan 2016
3   Sandra (1)   180,274   2008   Period   $26,500     Nov 2015
4   Iron Miner   177,931   2007   Period   $17,000     Mar 2013
5   Kirmar   164,218   2001   Period   $49,000  (net)   May 2013
6   Iron Beauty   164,218   2001   Period   $12,250     Dec 2012
7   Lowlands Beilun (1)   170,162   1999   Period   $28,000     Nov 2015
    Total Capesize (7)   1,217,803                  
8   Iron Manolis   82,269   2007   Period   $14,000     Dec 2012
9   Iron Brooke   82,594   2007   Period   $11,250     Mar 2013
10   Iron Lindrew (4)   82,598   2007   Period   $12,000  (floor)   Jan 2014
11   Pascha   82,574   2006   Period   $14,000     Oct 2012
12   Coal Gypsy   82,221   2006   Period   $11,250     May 2013
13   Iron Anne   82,220   2006   Period   $14,000     Dec 2012
14   Iron Vassilis   82,257   2006   Period   $11,000     Jul 2013
15   Iron Bill   82,187   2006   Period   $11,500     Apr 2013
16   Ore Hansa   82,209   2006   Period   $11,250     May 2013
17   Iron Kalypso   82,224   2006   Period   $11,500     Jan 2013
18   Iron Fuzeyya (6)   82,209   2006   Period   $12,750  (year 1)   Nov 2013
19   Santa Barbara (3)   82,266   2006   Period   $14,000  (floor)   Jun 2013
20   Coal Hunter (3)   82,298   2006   Period   $14,000  (floor)   Jun 2013
21   Iron Bradyn   82,769   2005   Period   $12,000     Nov 2012
    Total Kamsarmax (14)   1,152,895                  
22   Grain Harvester   76,417   2004   Period   $11,250     Apr 2013
23   Grain Express   76,466   2004   Period   $11,000     Jul 2013
24   Iron Knight   76,429   2004   Period   $12,250     Jan 2013
25   Coal Pride   72,493   1999   Spot          
26   Isminaki (4)   74,577   1998   Period   $11,000  (floor)   Nov 2012
27   Angela Star (4)   73,798   1998   Period   $11,000  (floor)   Nov 2012
28   Elinakos   73,751   1997   Spot          
29   Happy Day   71,694   1997   Spot          
30   Iron Man (5)   72,861   1997   Spot          
31   Coal Age (5)   72,824   1997   Spot          
32   Fearless I (5)   73,427   1997   Spot          
33   Barbara (5)   73,307   1997   Spot          
34   Linda Leah (4) (5)   73,317   1997   Period   $11,000  (floor)   Oct 2012
35   King Coal (5)   72,873   1997   Spot          
36   Coal Glory (5)   73,670   1995   Spot          
37   Powerful   70,083   1994   Spot          
38   First Endeavour   69,111   1994   Spot          
39   Rodon   73,656   1993   Spot          
40   Birthday   71,504   1993   Spot          
41   Renuar   70,155   1993   Spot          
42   Fortezza   69,634   1993   Spot          
    Total Panamax (21)   1,532,047                  
43   July M   55,567   2005   Period   $10,000     Oct 2012
44   Mairouli   53,206   2005   Period   $10,600     Oct 2012
    Total Supramax (2)   108,773                  
45   Emerald   45,588   1998   Spot          
46   Princess I   38,858   1994   Period   $9,000     Oct 2012
47   Attractive   41,524   1985   Spot          
    Total Handymax (3)   125,970                  
    Total Fleet (47)   4,137,488                  
    Average age       11.2 Yrs              
                           

(1) The charter includes a 50% profit-sharing arrangement over the indicated base daily time charter rate based on the monthly AV4 BCI Time Charter Rate, which is the Baltic Capesize Index Average of four specific time charter routes as published daily by the Baltic Exchange in London.

(2) The Company holds a 71.4% ownership interest in the joint venture that owns the vessel.

(3) The daily charter rate is calculated on the basis of the average of the AV4 BPI rates, as published on a daily basis by the Baltic Exchange in London during the 15 days preceding the payment of hire, with a guaranteed minimum daily rate (floor) of $14,000 and a 50% profit-sharing arrangement over the amount specified in each charter.

(4) The daily charter rate is calculated on the basis of the average of the AV4 BPI rates, as published on a daily basis by the Baltic Exchange in London during the 15 days preceding the payment of hire, with a guaranteed minimum daily rate (floor) ranging from $11,000 to $12,000 and a 50% profit-sharing arrangement over the amount specified in each charter.

(5) Indicates a vessel sold to its current owner in July 2007 and subsequently leased back to us under a bareboat charter expiring in July 2015.

(6) The daily charter rate during the first year of the charter is $12,750. Thereafter, the charter rate is calculated on the basis of the average of the AV4 BPI rates, as published on a daily basis by the Baltic Exchange in London during the 15 days preceding the payment of hire, with a guaranteed minimum daily rate (floor) of $11,750 and a 50% profit-sharing arrangement over the amount specified in the charter.

Contact Information

  • Contacts:

    Investor Relations / Financial Media:
    Nicolas Bornozis
    President
    Capital Link, Inc.
    230 Park Avenue - Suite 1536
    New York, NY 10169, USA
    Tel: (212) 661-7566
    Fax: (212) 661-7526

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

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

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