SOURCE: Excel Maritime

August 11, 2008 09:30 ET

Excel Maritime Reports Second Quarter 2008 Diluted EPS of $3.14 and Declares Dividend of $0.40 per Share

ATHENS, GREECE--(Marketwire - August 11, 2008) - 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 ended June 30, 2008.

Second Quarter and Year to Date Highlights:

--  On April 15, 2008, the Company successfully completed the acquisition
    of Quintana Maritime Limited, creating a combined company that operates a
    fleet of 47 vessels with a total carrying capacity of approximately 3.7
    million DWT and an average age of approximately 8.7 years;
--  The second quarter 2008 results include the consolidated results of
    Excel and Quintana starting from April 16, 2008. In this respect,
    approximately $14.1 million of revenues earned by Quintana between April 1
    and April 15, 2008 have not been included in the second quarter results;
--  Revenues from operations increased by approximately 451% to $205.5
    million in the second quarter of 2008 compared to $37.3 million in the
    corresponding period in 2007. Revenues include non-cash adjustments of
    approximately $75.7 million, relating to the amortization of unfavorable
    time charters that were fair valued upon acquiring Quintana;
--  Net income increased by approximately 534% to $126.8 million or $3.14
    per diluted share, compared to $20.0 million or $1.00 per diluted share in
    the second quarter of 2007. Net income includes a non-cash interest-rate
    swap gain in the period of approximately $22.8 million compared to $0.3
    million in the second quarter of 2007.
--  Adjusted EBITDA was approximately $88.6 million compared to $23.7
    million in the second quarter of 2007, an increase of approximately 274%;
--  An average of 42.2 vessels were operated earning a blended average
    adjusted time charter equivalent, net rate of $33,329 per day compared to
    $25,142 per per day for the second quarter of 2007;
--  The Company increased its quarterly minimum dividend guidance by 100%
    to $0.40 per share.
    

Second Quarter 2008 Results:

The acquisition of Quintana was accounted for using the "purchase method" of accounting, whereby all Quintana's assets were fair valued, resulting in goodwill of approximately $321m. In particular, all Quintana's time charters were fair valued, giving rise to significant deferred assets and liabilities that will be amortized to income over their remaining lives.

The second quarter results reflect consolidated Excel-Quintana results from April 16, the day following the closing of the Quintana acquisition transaction. In this respect, revenues and expenses from ex-Quintana vessels start contributing to Excel's results from April 16 onwards. The first quarterly results that will reflect a full quarter's operations of the combined entity will be the third quarter of 2008.

For the second quarter of 2008, Excel reported net income of $126.8 million, or $3.14 per diluted share, compared to net income of $20.0 million, or $1.00 per diluted share, in the second quarter of 2007. The second quarter 2008 results include a non-cash unrealized interest-rate swap gain of $22.8 million due to increased forward interest rates during the period compared to an unrealized interest-rate swap gain of $0.2 million in the corresponding period in 2007. Swap gains and losses are recorded in income as they do not meet the criteria for hedge accounting. The second quarter results of 2007 also include a gain on sale of vessels of $6.2 million whereas no such gains were recorded in the second quarter of 2008. Before the unrealized swap gains and gain on sale of vessels, adjusted net income is $104.0 million, or $2.58 per adjusted diluted share, compared to $13.5 million or $0.68 per share in the second quarter 2007, an increase of approximately 670%.

Revenues for the second quarter of 2008 amounted to $205.5 million as compared to $37.3 million for the same period in 2007, an increase of approximately 451%. Included in revenues for the second quarter of 2008 are $75.7 million of non-cash revenues relating to the amortization of underwater time charters. There were no such non-cash revenue adjustments recorded in the corresponding period in 2007.

General and administrative expenses for the second quarter of 2008 include one-off charges relating to the merger of approximately $1.9 million, or $0.05 per diluted share. In addition the Company initiated a stock based incentive program. Amortization cost relating to the plan during the quarter was approximately $2.6 million or $0.06 per diluted share.

Adjusted EBITDA for the second quarter of 2008 was $88.6 million compared to $23.7 million for the second quarter of 2007, an increase of approximately 274%. Adjusted EBITDA for the second quarter excludes bareboat charter amortization of approximately $8.3 million relating to favorable bareboat time charters that were fair valued upon the acquisition of Quintana and reflected as an asset on Excel's balance sheet. The amortization increases charter hire expense on Excel's income statement and there was no such amortization in the corresponding period in 2007. It also excludes the amortization of unfavorable time charters as discussed above. Please refer to a subsequent section of this Press Release for a reconciliation of adjusted EBITDA to Net Income.

An average of 42.2 vessels were operated during the second quarter of 2008 earning a blended average adjusted time charter equivalent rate of $33,329 per day, compared to an average of 16.4 vessels operated during the second quarter of 2007 earning a blended average time charter equivalent rate of $25,142 per day.

Stamatis Molaris, President and Chief Executive Officer of Excel, stated, "The second quarter results demonstrate the significant growth of Excel following the acquisition of Quintana, even though Quintana's results are not fully reflected in the second quarter 2008 results. The acquisition has completely transformed Excel in terms of growth prospects as well as cash flow security. The recent minimum dividend guidance of $0.40 per share is a reflection of Excel's strong financial position. We are all very optimistic for our future performance despite the recent market volatility. The significant time charter cover inherited from Quintana provides a stable platform for us to enhance our performance and enhance returns for our shareholders in the future."

Six Months to June 30, 2008

For the six-month period ended June 30, 2008, Excel reported net income of $165.2 million, or $5.50 per diluted share, compared to net income of $32.2 million, or $1.61 per diluted share, for the corresponding period in 2007. The first half 2008 results include a non-cash unrealized swap gain of $21.0 million compared to an unrealized swap gain of $0.3 million in the first half of 2007. The first half results of 2007 also include a gain on sale of vessels of $6.2 million whereas no such gains were recorded in the first half of 2008. Before the unrealized swap gains and gain on sale of vessels, adjusted net income is $144.2 million, or $4.80 per adjusted diluted share, compared to $25.8 million or $1.29 per share in the first half 2007, an increase of approximately 459%.

Revenues for the six months to June 30, 2008 amounted to $275.3 million as compared to $73.4 million for the same period in 2007, an increase of 275%. Included in revenues for the first half of 2008 is a non-cash time charter amortization of $75.7 million, as discussed above. There were no such non-cash revenues recorded in the corresponding period in 2007.

Adjusted EBITDA for the first half of 2008 was $140.7 million compared to $46.4 million for the first half of 2007, an increase of approximately 203%. Adjusted EBITDA for the first half of 2008, excludes bareboat charter amortization of approximately $8.3 million relating to favorable bareboat time charters. There was no such amortization in the corresponding period in 2007. It also excludes the amortization of unfavorable time charters as discussed above. Please refer to a subsequent section of this Press Release for a reconciliation of adjusted EBITDA to Net Income.

An average of 30.1 vessels were operated during the first half of 2008 earning a blended average adjusted time charter equivalent rate of $35,786 per day, compared to an average of 16.7 vessels operated during the second quarter of 2007 earning a blended average time charter equivalent rate of $23,760 per day.

Time Charter Coverage:

The current combined fleet charter coverage, after the acquisition of Quintana's fleet, for the second half of 2008 and for the full years 2009 and 2010 is expected to be approximately 80%, 59% and 50% respectively. As a result, the projected net revenues under fixed time charters for the second half of 2008 and for the full years 2009 and 2010 is expected to be approximately $207 million, $280 million and $221 million respectively, before any non-cash revenue adjustments.

During the remaining part of 2008 Excel will have 8 Panamax vessels, 2 Supramax vessels and 5 Handymax vessels rolling off from their current charters.

Stamatis Molaris, President and Chief Executive Officer of Excel, stated, "Post-merger, Excel's combined fleet is deployed in a more balanced employment approach. We are taking advantage of the positive rate environment to expand our charter coverage for 2009 and beyond to secure consistent cash flows and ongoing profitability to our shareholders, while at the same time we are benefitting from operating certain part of our fleet under short-term period charters or in the spot market."

Dividend Guidance:

The Board of Directors has declared a dividend of $0.40 per share, payable on September 15, 2008 to all shareholders of record as of September 1, 2008. Inclusive of this dividend, Excel Maritime has declared an aggregate dividend of $1.40 per share since May 2007. The dividend payment of $0.40 per share is consistent with the guidance provided by the Board of Directors. The Board retains the authority to alter the dividend policy at its discretion.


Conference Call details:

Today, August 11, 2008 at 10:00 AM 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."

In case of any problems with the above numbers, please dial 1 866 223 0615 (US Toll Free Dial In), 0800 694 1503 (UK Toll Free Dial In) or +44 (0)1452 586 513 (Standard International Dial In). Please Quote "Excel Maritime to the operator."

A telephonic replay of the conference call will be available until August 18, 2008 by dialing 1 866 247 4222 (US Toll Free Dial In), 0800 953 1533 (UK Toll Free Dial In) or +44 (0)1452 550 000 (Standard International Dial In). Access Code: 1838801#

Slides and audio webcast:

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

- Financial and Other Financial Data Follow -

                EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
                UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
        FOR THE THREE MONTHS ENDED JUNE 30, 2008 AND JUNE 30, 2007
   (In thousands of U.S. Dollars, except for share and per share data)


                                                    Second       Second
                                                    Quarter      Quarter
                                                      2008         2007
                                                   Unaudited    Unaudited
                                                  -----------  -----------

REVENUES:
  Voyage revenues                                     129,614       37,126
  Time charter fair value amortization                 75,651           --
  Revenue from managing related party vessels             232          204
                                                  -----------  -----------
         Revenue from operations                      205,497       37,330
                                                  -----------  -----------

EXPENSES:
  Voyage expenses                                       5,976        2,668
  Charter hire expense                                 15,151           --
  Commission to a related party                           954          467
  Vessel operating expenses                            19,080        8,229
  Depreciation expense                                 29,649        6,957
  Amortization for drydocking and special survey        1,771          868
  General and administrative expenses                  11,065        2,873
                                                  -----------  -----------
                                                       83,646       22,062
                                                  -----------  -----------

                                                  -----------  -----------
Gain on sale of vessels                                    --        6,194
                                                  -----------  -----------

                                                  -----------  -----------
  Income from operations                              121,851       21,462
                                                  -----------  -----------

OTHER INCOME (EXPENSES):

  Interest and finance costs                          (16,463)      (3,484)
  Interest income                                       1,986        1,424
  Interest rate swap gain, net                         19,534          295
  Foreign exchange losses                                 (70)         (40)
  Other, net                                              (61)          (2)
                                                  -----------  -----------
   Total other income (expenses), net                   4,926       (1,807)
                                                  -----------  -----------

                                                  -----------  -----------
Net income before taxes, minority interest and
 income from investment in affiliate                  126,777       19,655

US source income taxes                                   (244)         (56)

                                                  -----------  -----------
Net income before minority interest income from
 investment in affiliate                              126,533       19,599

Minority interest                                          51           --
Income from investment in affiliate                       175          354

                                                  -----------  -----------
Net income                                            126,759       19,953
                                                  -----------  -----------

Earnings per common share, basic                  $      3.18  $      1.00
Weighted average number of shares, basic           39,836,681   19,949,644
Earnings per common share, diluted                $      3.14  $      1.00
Weighted average number of shares, diluted         40,376,857   19,960,736
                                                  -----------  -----------


              EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
               UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
         FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND JUNE 30, 2007
   (In thousands of U.S. Dollars, except for share and per share data)


                                                  First Half   First Half
                                                      2008         2007
                                                   Unaudited    Unaudited
                                                  -----------  -----------

REVENUES:
  Voyage revenues                                     199,138       72,991
  Time charter fair value amortization                 75,651           --
  Revenue from managing related party vessels             465          365
                                                  -----------  -----------
         Revenue from operations                      275,254       73,356
                                                  -----------  -----------

EXPENSES:
  Voyage expenses                                      10,144        5,146
  Charter hire expense                                 15,151           --
  Commission to a related party                         1,822          913
  Vessel operating expenses                            28,127       16,523
  Depreciation expense                                 37,641       14,075
  Amortization for drydocking and special survey        3,268        1,555
  General and administrative expenses                  14,832        5,280
                                                  -----------  -----------
                                                      110,985       43,492
                                                  -----------  -----------

                                                  -----------  -----------
Gain on sale of vessels                                    --        6,194
                                                  -----------  -----------

                                                  -----------  -----------
  Income from operations                              164,269       36,058
                                                  -----------  -----------

OTHER INCOME (EXPENSES):

  Interest and finance costs                          (20,911)      (7,117)
  Interest income                                       4,625        2,585
  Interest rate swap gain, net                         17,631          414
  Foreign exchange losses                                (208)         (51)
  Other, net                                             (133)         (24)
                                                  -----------  -----------
   Total other income (expenses), net                   1,004       (4,193)
                                                  -----------  -----------

                                                  -----------  -----------
Net income before taxes, minority interest and
 income from investment in affiliate                  165,273       31,865

US source income taxes                                   (489)        (112)

                                                  -----------  -----------
Net income before minority interest income from
 investment in affiliate                              164,784       31,753

Minority interest                                          51            2
Income from investment in affiliate                       404          463

                                                  -----------  -----------
Net income                                            165,239       32,218
                                                  -----------  -----------

Earnings per common share, basic                  $      5.53  $      1.61
Weighted average number of shares, basic           29,895,936   19,949,644
Earnings per common share, diluted                $      5.50  $      1.61
Weighted average number of shares, diluted         30,048,407   19,960,001
                                                  -----------  -----------


                 EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
            At June 30, 2008 (UNAUDITED) AND DECEMBER 31, 2007
    (In thousands of U.S. Dollars, except for share and per share data)


                                                    June 30,     December
                                                      2008       31, 2007
                                                   Unaudited
                                                  -----------  -----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                             127,264      243,672
Restricted cash                                        21,203        3,175
Accounts receivable                                     6,254        1,506
Other current assets                                    8,936        4,381
                                                  -----------  -----------
Total Current Assets                                  163,657      252,734
                                                  -----------  -----------

FIXED ASSETS:
Vessels, net                                        2,700,786      527,164
Advances for acquisition of vessels /
 newbuildings                                         179,907           --
Office furniture and equipment, net                     1,729        1,466
                                                  -----------  -----------
Total Fixed Assets, net                             2,882,422      528,630
                                                  -----------  -----------

OTHER NON-CURRENT ASSETS:
Goodwill                                              321,404          400
Deferred assets, net                                   14,625       15,119
Time charters acquired, net                           284,394           --
Restricted cash                                       103,789       11,825
Investment in affiliate                                15,900       15,688
                                                  -----------  -----------
   Total Assets                                     3,786,191      824,396
                                                  -----------  -----------

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt, net of
 deferred financing fees                              278,127       39,179
Accounts payable                                        9,410        4,306
Other current liabilities                              44,195       10,449
Current portion of financial instruments               20,819        2,056
                                                  -----------  -----------
Total Current Liabilities                             352,551       55,990
                                                  -----------  -----------

Long-term debt, net of current portion and net of
 deferred financing fees                            1,371,313      368,585
Time charters acquired, net                           797,451           --
Financial instruments                                  13,481           --
                                                  -----------  -----------
Total Liabilities                                   2,534,796      424,575
                                                  -----------  -----------

Commitments and contingencies
Minority interest in equity of consolidated joint
 ventures                                              14,282           --

STOCKHOLDERS' EQUITY:
Preferred Stock                                            --           --
Common Stock                                              435          200
Additional paid-in capital                            878,396      193,897
Other comprehensive loss                                  (66)         (65)
Retained earnings                                     358,537      205,978
Less: Treasury stock                                     (189)        (189)
                                                  -----------  -----------
Total Stockholders' Equity                          1,237,113      399,821
                                                  -----------  -----------
   Total Liabilities and Stockholders' Equity       3,786,191      824,396
                                                  -----------  -----------


                      EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
                          CONSOLIDATED STATEMENTS OF CASH FLOWS
                    FOR THE SIX MONTHS ENDED JUNE 30, 2008 (UNAUDITED)
                              AND JUNE 30, 2007 (UNAUDITED)
                             (In thousands of U.S. Dollars)

                                                    June 30,     June 30,
                                                      2008         2007
                                                   Unaudited    Unaudited

                                                  -----------  -----------
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income for the period                         $   165,239  $    32,218
Adjustments to reconcile net income to net cash
 provided by operating activities:
     Depreciation and amortization                     43,054       15,827
     Time charter amortization                        (67,336)          --
     Unrealized interest rate swap gain               (21,018)        (263)
     Straight-line revenue recognition adjustment       2,354           --
     Gain on sale of vessel                                --       (6,194)
     Stock-based compensation                           2,712          520
     Income from investment in affiliate                 (404)        (463)
     Minority interest share in net loss of
      consolidated joint ventures                         (51)          (2)
Changes in operating assets and liabilities:
     Operating assets                                    (244)       1,030
     Operating liabilities                             18,338        2,816
     Payments for dry docking and special surveys      (7,324)      (4,064)

                                                  -----------  -----------
 Net cash from operating activities                   135,320       41,425
                                                  -----------  -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Acquisition of Quintana, net of cash acquired   (692,420)          --
     Advances for vessel acquisitions /
      newbuildings                                     (8,820)          --
     Additions to vessel cost                            (341)          --
     Additions to office furniture and equipment         (193)        (552)
     Investment in affiliate                               --      (11,000)
     Proceeds from sale of vessel                          --       15,740

                                                  -----------  -----------
Net cash used in investing activities                (701,774)       4,188
                                                  -----------  -----------

CASH FLOWS  FROM FINANCING ACTIVITIES:
     Proceeds from long-term debt                   1,405,642           --
     Repayment of long-term debt                     (817,845)     (19,202)
     Increase in restricted cash                     (109,992)          --
     Dividends paid                                   (12,680)      (3,931)
     Payment of financing costs                       (14,959)          --
     Share capital issuance costs                        (120)          --
     Payment from a related party                          --        2,024

                                                  -----------  -----------
Net cash used in financing activities                 450,046      (21,109)
                                                  -----------  -----------

Net (decrease) / increase in cash and cash
 equivalents                                         (116,408)      24,504
Cash and cash equivalents at beginning of period      243,672       86,289

                                                  -----------  -----------
Cash and cash equivalents at end of the period    $   127,264  $   110,793
                                                  ===========  ===========

SUPPLEMENTAL CASH FLOW INFORMATION:
  Cash paid during the period for:
     Interest payments                            $    11,152  $     6,706
     U.S. source income taxes                             533          162
  Non-cash financing activities:
     Class A common stock issued as
      part-consideration for acquisition of
      Quintana                                        682,333           --




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


                                    For 3 months ended  For 6 months ended
                                    June 30,  June 30,  June 30,  June 30,
                                      2008      2007      2008      2007

Net Income                          $126,759  $ 19,953  $165,239  $ 32,218
                                    --------  --------  --------  --------
Interest and finance costs, net (1)   17,718     1,984    19,673     4,381
Depreciation and amortization         31,420     7,825    40,909    15,630
Unrealized Swap Gain                 (22,775)     (219)  (21,018)     (263)
Amortization of t/c fair values (2)  (67,336)        -   (67,336)        -
Stock-based compensation               2,589       262     2,721       520
Gain on sale of vessels                    -    (6,194)        -    (6,194)
Taxes                                    244        56       489       112
                                    --------  --------  --------  --------
Adjusted EBITDA                     $ 88,619  $ 23,667  $140,677  $ 46,404
                                    ========  ========  ========  ========

(1) Include swap interest paid or received
(2) Analysis:
      Non-cash amortization of unfavourable time charter
       in revenue                                                 $(75,651)
      Non-cash amortization of favourable time charters
       in charter hire expenses                                   $  8,315
                                                                  --------
                                                                   (67,336)
                                                                  --------



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

                                 For 3 months ended    For 6 months ended
                                June 30,   June 30,   June 30,   June 30,
                                  2008       2007       2008       2007

Net Income                      $ 126,759  $  19,953  $ 165,239  $  32,218
Unrealized Swap Gain              (22,775)      (219)   (21,018)      (263)
Gain on sale                            -     (6,194)         -     (6,194)
                                ---------  ---------  ---------  ---------
Adjusted Net Income             $ 103,984  $  13,540  $ 144,221  $  25,761
                                ---------  ---------  ---------  ---------



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


                                 For 3 months ended    For 6 months ended
                                June 30,   June 30,   June 30,   June 30,
                                  2008       2007       2008       2007

Earnings per share (diluted)    $    3.14  $    1.00  $    5.50  $    1.61
Unrealized Swap Gain                (0.56)     (0.01)     (0.70)     (0.01)
Gain on sale                            -      (0.31)         -      (0.31)
                                ---------  ---------  ---------  ---------
Adjusted Earnings per share
 (diluted)                      $    2.58  $    0.68  $    4.80  $    1.29
                                ---------  ---------  ---------  ---------


Disclosure of Non-GAAP Financial Measures

We consider adjusted EBITDA represents net income plus net interest expense, depreciation, amortization, and taxes plus deferred stock-based compensation, gains or losses on the sale of vessels, amortization of deferred time charter assets and liabilities and unrealized gains on swaps, which are significant non-cash items. 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 losses (gains) 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. After the acquisition of Quintana, Excel owns a fleet of 40 vessels and, together with 7 Panamax vessels under bareboat charters, operates 47 vessels (4 Capesize, 14 Kamsarmax, 21 Panamax, 2 Supramax and 6 Handymax vessels) with a total carrying capacity of approximately 3.7 million DWT. Excel Class A common shares have been listed since September 15, 2005 on the New York Stock Exchange (NYSE) under the symbol EXM and, prior to that date, were listed on the American Stock Exchange (AMEX) since 1998. For more information about the Company, please go to our corporate website www.excelmaritime.com.

Forward-Looking Statement

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, the Company's planned acquisition of Quintana and the Company's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to the ability to satisfy the closing conditions of the acquisition, changes in the demand for dry bulk vessels, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

APPENDIX

The following key indicators highlight the Company's financial and operating performance during the second quarter and first half of 2008 compared to the corresponding period 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: (in U.S. Dollars per day, unless otherwise stated):

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


                                              HANDYSIZE
            CAPESIZE FLEET  PANAMAX FLEET       FLEET         TOTAL FLEET
            --------------  --------------  --------------  --------------
             3m to   3m to  3m to   3m to   3m to   3m to   3m to   3m to
              June    June   June    June    June    June    June    June
               30,     30,    30,     30,     30,     30,     30,     30,
              2008    2007   2008    2007    2008    2007    2008    2007
             ======  =====  ======  ======  ======  ======  ======  ======

Total
 ownership
 days           304      -   2,810     910     728     585   3,842   1,495

Available
 operating
 under
 period
 charter        274      -   2,516     811     131     246   2,921   1,058

Available
 operating
 under
 spot/
 short
 duration
 charter         30      -     249      14     552     280     831     294

Utilization   100.0%     -    98.4%   90.7%   93.8%   90.0%   97.7%   90.4%

Time
 charter
 equivalent
 per ship
 per day -
 period      47,207      -  25,938  25,531  35,018  22,758  28,342  24,884

Time
 charter
 equivalent
 per ship
 per day -
 spot       118,100      -  53,975  35,857  45,824  25,577  50,860  26,070

Time
 charter
 equivalent
 per ship
 per day -
 weighted
 average     54,150      -  28,467  25,706  43,753  24,256  33,329  25,142

Net daily
 revenue
 per ship
 per day     54,150      -  28,011  23,305  41,022  21,835  32,545  22,731

Vessel
 operating
 expenses
 per ship
 per day     (4,485)     -  (4,857) (5,556) (5,588) (4,672) (4,966) (5,211)

Net
 Operating
 Cash Flow
 per ship
 per day
 before g&a
 expenses    49,665      -  23,155  17,749  35,434  17,163  27,579  17,520
             ======  =====  ======  ======  ======  ======  ======  ======



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


                                              HANDYSIZE
            CAPESIZE FLEET  PANAMAX FLEET       FLEET         TOTAL FLEET
            --------------  --------------  --------------  --------------
               6       6      6       6       6       6       6       6
            Months  Months  Months  Months  Months  Months  Months  Months
             June    June    June    June    June    June    June    June
              30,     30,     30,     30,     30,     30,     30,     30,
             2008    2007    2008    2007    2008    2007    2008    2007
            ======  ======  ======  ======  ======  ======  ======  ======

Total
 ownership
 days          304       -  3,720   1,810   1,456   1,215   5,480   3,025

Available
 operating
 under
 period
 charter       274       -   3,186   1,697     424     411   3,884   2,109

Available
 operating
 under
 spot/
 short
 duration
 charter        30       -     431      14     951     694   1,412     708

Utilization  100.0%      -    97.2%   94.6%   94.4%   91.0%   96.6%   93.1%

Time
 charter
 equivalent
 per ship
 per day -
 period     47,207       -  27,313  25,128  36,844  20,117  29,758  24,151

Time
 charter
 equivalent
 per ship
 per day -
 spot      118,100       -  62,561  35,857  45,687  22,328  52,370  22,597

Time
 charter
 equivalent
 per ship
 per day -
 weighted
 average    54,150       -  31,516  25,216  42,959  21,237  35,786  23,760

Net daily
 revenue
 per ship
 per day    54,150       -  30,646  23,843  40,564  19,562  34,585  22,123

Vessel
 operating
 expenses
 per ship
 per day    (4,485)      -  (5,190) (5,643) (5,121) (4,830) (5,132) (5,317)

Net
 Operating
 Cash Flow
 per ship
 per day
 before g&a
 expenses   49,665       -  25,456  18,199  35,443  14,732  29,453  16,806
            ======  ======  ======  ======  ======  ======  ======  ======

Glossary of Terms

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

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

Operating days - These are the ownership days less the aggregate number of off-hire days associated with major repairs, drydocks or special or intermediate surveys and the aggregate amount of time spent positioning vessels 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.

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

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

Adjusted 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 and time charter fair value amortization, by available days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, as well as commissions. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., spot voyage charters, time charters and bareboat charters) under which the vessels may be employed between the periods.

                Adjusted Time Charter Equivalent Calculation
                        (In thousands of U.S. Dollars)


                                            Second Quarter  Second Quarter
                                            Ended June 30,  Ended June 30,
                                                 2008            2007
Voyage revenues                             $      205,265  $       37,126
Voyage expenses                                     (6,930)         (3,135)
Time charter fair value amortization               (75,651)             --
Straight-line revenue adjustment                     2,354              --
                                            --------------  --------------
Total revenue, net of voyage expenses and
 time charter amortization                         125,038          33,991
Total available days                                 3,752           1,352
                                            --------------  --------------
Time Charter Equivalent                     $       33,329  $       25,142
                                            ==============  ==============


                                              Six Months      Six Months
                                            Ended June 30,  Ended June 30,
                                                 2008            2007
Voyage revenues                             $      274,789  $       72,991
Voyage expenses                                    (11,966)         (6,059)
Time charter fair value amortization               (75,651)             --
Straight-line revenue adjustment                     2,354              --
                                            --------------  --------------
Total revenue, net of voyage expenses and
 time charter amortization                         189,526          66,932
Total available days                                 5,296           2,817
                                            --------------  --------------
Time Charter Equivalent                     $       35,786  $       23,760
                                            ==============  ==============



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

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

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

Expected Amortization Schedule for Fair Valued Time Charters for Next Year

(in USD Millions)                        Q3'08  Q4'08  Q1'09  Q2'09  Total
                                         -----  -----  -----  -----  -----

Amortization of unfavourable time
 charters (1)                             84.6   81.5   75.8   78.5  320.4

Amortization of favourable time
 charters (2)                            (10.1) (10.1)  (9.9) (10.0) (40.1)

                                         =====  =====  =====  =====  =====

(1) Adjustment to Revenue from operations i.e. increases revenues
(2) Adjustment to Charter hire expenses i.e. increases charter hire expense

Fleet List as of August 11, 2008:

The following table represents our fleet as of August 11, 2008. This table takes into account the fleet from the acquisition of Quintana:

                                                                    FV of
                                                    TC Expiration  Vessels
                                              Year    Date (max      at
Name                        Type      Dwt     Built    period)     Merger *
                          --------- --------- ----- -------------- --------
Capesize
Lowlands Beilun            Capesize   170,162  1999      June 2010    131.0
Iron Miner                 Capesize   177,000  2007     April 2012    160.5
Kirmar                     Capesize   165,500  2001      June 2011    139.0
Iron Beauty                Capesize   165,500  2001      June 2010    139.0
                          --------- --------- ----- -------------- --------
Total Capesize                    4   678,162
                          --------- --------- ----- -------------- --------

Kamsarmax
Iron Manolis              Kamsarmax    82,300  2007  December 2010    96.25
Iron Brooke               Kamsarmax    82,300  2007  December 2010    96.25
Iron Lindrew              Kamsarmax    82,300  2007  December 2010    96.25
Coal Hunter               Kamsarmax    82,300  2006  December 2010    93.25
Pascha                    Kamsarmax    82,300  2006  December 2010    93.25
Coal Gypsy                Kamsarmax    82,300  2006  December 2010    93.25
Iron Anne                 Kamsarmax    82,000  2006  December 2010    93.25
Iron Vassilis             Kamsarmax    82,000  2006  December 2010    93.25
Iron Bill                 Kamsarmax    82,000  2006  December 2010    93.25
Santa Barbara             Kamsarmax    82,266  2006  December 2010    93.25
Ore Hansa                 Kamsarmax    82,229  2006  December 2010    93.25
Iron Kalypso              Kamsarmax    82,204  2006  December 2010    93.25
Iron Fuzeyya              Kamsarmax    82,229  2006  December 2010    93.25
Iron Bradyn               Kamsarmax    82,769  2005  December 2010    90.75
                          --------- --------- ----- -------------- --------
Total Kamsarmax                  14 1,151,497
                          --------- --------- ----- -------------- --------

Panamax
Grain Harvester             Panamax    76,411  2004  December 2010    85.75
Grain Express               Panamax    76,466  2004  December 2010    85.75
Iron Knight                 Panamax    76,429  2004  December 2010    85.75
Coal Pride                  Panamax    72,600  1999      June 2010     72.0
Iron Man (A)                Panamax    72,861  1997    August 2010        -
Coal Age (A)                Panamax    72,861  1997  December 2008        -
Fearless I (A)              Panamax    73,427  1997 September 2008        -
Barbara (A)                 Panamax    73,390  1997 September 2008        -
Linda Leah (A)              Panamax    73,390  1997   October 2009        -
King Coal (A)               Panamax    72,873  1997    August 2011        -
Coal Glory (A)              Panamax    73,670  1995    August 2008        -
Isminaki                    Panamax    74,577  1998      July 2009      n/a
Angela Star                 Panamax    73,798  1998   January 2009      n/a
Elinakos                    Panamax    73,751  1997   October 2009      n/a
Rodon                       Panamax    73,670  1993  November 2008      n/a
Happy Day                   Panamax    71,694  1997   January 2009      n/a
Birthday                    Panamax    71,504  1993 September 2008      n/a
Renuar                      Panamax    70,128  1993  February 2009      n/a
Powerful                    Panamax    70,083  1994      July 2009      n/a
Fortezza                    Panamax    69,634  1993    August 2008      n/a
First Endeavour             Panamax    69,111  1994   October 2009      n/a
                          --------- --------- ----- -------------- --------
Total Panamax                    21 1,532,328                      2,210.75
                          --------- --------- ----- -------------- --------

Supramax
July M                     Supramax    55,567  2005 September 2008      n/a
Mairouli                   Supramax    53,206  2005    August 2008      n/a
                          --------- --------- ----- -------------- --------
Total Supramax                    2   108,773
                          --------- --------- ----- -------------- --------

                                                    TC Expiration
                                              Year  Date (maximum
Handymax                    Type      Dwt     Built    period)
                          --------- --------- ----- -------------- --------
Emerald                    Handymax    45,588  1998    In dry dock      n/a
Marybelle                  Handymax    42,552  1987 September 2008      n/a
Attractive                 Handymax    41,524  1985 September 2008      n/a
Lady                       Handymax    41,090  1985    In dry dock      n/a
Princess I                 Handymax    38,858  1994      July 2009      n/a
Swift                      Handymax    37,687  1984 September 2008      n/a
                          --------- --------- ----- -------------- --------
Total Handymax                    6   247,299
                          --------- --------- ----- -------------- --------
                                               8.7
                                              Years
                                            (Average
GRAND TOTAL                      47 3,718,059  Age)
                          --------- --------- ----- -------------- --------



                                                       Delivery Range
Fleet To Be Delivered               Type      Dwt            (B)
---------------------             --------  ---------  ---------------
Sandra                            Capesize    180,000    December 2008
Christine ©                     Capesize    180,000         May 2010
Hope (D)                          Capesize    181,000    November 2010
Lillie (D)                        Capesize    181,000    December 2010
Fritz (D)                         Capesize    180,000         May 2010
Benthe (D)                        Capesize    180,000        June 2010
Gayle Frances (D)                 Capesize    180,000        July 2010
Iron Lena (D)                     Capesize    180,000      August 2010
                                  --------  ---------  ---------------
Total Fleet To Be Delivered              8  1,442,000
                                  --------  ---------  ---------------

* These amounts reflect the fair values assigned to ex-Quintana vessels at the merger date. Excel vessels remain at book value in the financial statements.

(A) These vessels were sold in 2007 and leased back on a bareboat charter through July 2015.

(B) The delivery dates shown in this column are estimates based on the delivery dates set forth in the relevant shipbuilding contracts or resale agreements. There can be no assurances that the vessels will be delivered timely or at all.

© Excel holds a 42.8% interest in the joint venture that will own the vessel.

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

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: info@excelmaritime.com
    www.excelmaritime.com