Excel Maritime Carriers Reports Results for the Fourth Quarter and Year ended December 31, 2010
News Release
Excel Maritime Carriers, Ltd.
February 28, 2011
Excel Maritime Reports Results for the Fourth Quarter
and Year ended December 31, 2010
ATHENS, GREECE – February 28, 2011 – 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 fourth quarter and year
ended December 31, 2010.
Fourth Quarter and Twelve-Month 2010 Highlights:
Three-Months
ended
December 31,
Year ended
December 31,
2009 2010 2009 2010
(amounts in millions of U.S Dollars, except per share
data and daily TCE)
Voyage Revenues $102.6 $107.0 $391.7 $423.0
Net Income $81.8 $63.6 $339.8 $257.8
Adjusted Net Income (Loss) $4.0 $12.0 $(8.2) $33.5
Earnings per Share-Diluted $1.00 $0.76 $4.85 $3.10
Adjusted Earnings (losses) per Share-Diluted $0.05 $0.14 $(0.12) $0.40
Adjusted EBITDA $62.0 $61.9 $231.7 $246.2
Time Charter Equivalent (TCE) per day $22,686 $22,440 $21,932 $23,421
A reconciliation of the non-GAAP measures discussed above is included in a later
section of this release.
Management Commentary:
Pavlos Kanellopoulos, Chief Financial Officer of Excel, stated, “We are pleased to
report a profitable set of operating results for the 4th Quarter of 2010, complementing
our consistently strong performance throughout 2010. In particular, against a volatile
freight environment during the 4th Quarter, we recorded Adjusted EBITDA of $61.9m
and Adjusted EPS of $0.14 contributing to full year 2010 Adjusted EBITDA and
Adjusted EPS of $246.2m and $0.40 respectively. Throughout the past period we
continued to fix our open vessels under time charters reaching a fleet wide time
charter coverage of 56% for 2011, which will enable us to increase our cash flow
visibility and further lower our breakeven levels. While we expect that deliveries of
new vessels in 2011 will cause some volatility in freight rates, we remain cautiously
optimistic in the dry bulk market outlook based on emerging markets being the
principal drivers of growth. We believe that Excel with its diversified quality asset
base and absence of newbuild commitments is well positioned to generate strong
cash flows and returns through the investment cycle.”
2
Fourth Quarter 2010 Results:
Excel reported voyage revenues for the fourth quarter of 2010 amounted to $107.0
million as compared to $102.6 million for the same period in 2009, an increase of
approximately 4.3%.
Adjusted EBITDA for the fourth quarter of 2010 was $61.9 million compared to $62.0
million for the fourth quarter of 2009, a decrease of approximately 0.2%.
Net profit for the quarter amounted to $63.6 million or $0.76 per weighted average
diluted share compared to a net profit of $81.8 million or $1.00 per weighted average
diluted share in the fourth quarter of 2009.
The fourth quarter 2010 results include a non-cash unrealized gain on derivative
financial instruments of $10.8 million compared to a non-cash unrealized gain on
derivative financial instruments of $8.1 million in the corresponding period in 2009.
Included in the above net income is also the amortization of favorable and
unfavorable time charters that were recorded upon acquiring Quintana Maritime
Limited (“Quintana”) on April 15, 2008 amounting to a net income of $40.9 million
($0.49 per weighted average diluted share) and $73.4 million ($0.90 per weighted
average diluted share) for the fourth quarter of 2010 and 2009, respectively.
In addition, the fourth quarter 2009 results include a non cash loss on disposal of an
ownership interest in one of our joint ventures amounting to $3.7 million.
Adjusted net income, excluding all the above items, for the fourth quarter of 2010
would have amounted to $12.0 million or $0.14 per weighted average diluted share
compared to an adjusted net income, excluding all the above items, for the fourth
quarter of 2009 of $4.0 million or $0.05 per weighted average diluted share.
Included in the above adjusted net income is also the amortization of stock based
compensation expense of $2.2 million ($0.03 per weighted average diluted share)
and $5.5 million ($0.07 per weighted average diluted share), for the quarter ended
December 31, 2010 and 2009, respectively.
An average of 48.0 and 47.0 vessels were operated during the fourth quarter of 2010
and 2009, respectively, earning a blended average time charter equivalent rate of
$22,440 and $22,686 per day, respectively.
A reconciliation of adjusted EBITDA to Net Income and adjusted net income to net
income and for a calculation of the TCE is provided in a later section of this press
release.
Year 2010 Results:
Voyage revenues for the year ended December 31, 2010 amounted to $423.0 million
as compared to $391.7 million for the same period in 2009, an increase of
approximately 8%.
Adjusted EBITDA for the year was $246.2 million compared to $231.7 million for the
respective period of 2009, an increase of approximately 6.3%.
3
Net profit for the year amounted to $257.8 million or $3.10 per weighted average
diluted share compared to a net profit of $339.8 million or $4.85 per weighted
average diluted share in the respective period of 2009.
The results for the year ended December 31, 2010 include a non-cash unrealized
gain on derivative financial instruments of $1.9 million compared to a non-cash
unrealized gain on derivative financial instruments of $27.2 million in the
corresponding period in 2009. In addition, the results for the year ended December
31, 2009 include $0.1 million of a non-cash gain on sale of a vessel and $3.7 million
relating to the loss on disposal of our ownership interest in one of our joint ventures.
Included in the above net income is also the amortization of favorable and
unfavorable time charters that were recorded upon acquiring Quintana on April 15,
2008 amounting to a net income of $222.4 million ($2.68 per weighted average
diluted share) and $324.4 million ($4.63 per weighted average diluted share) for the
year ended December 31, 2010 and 2009, respectively.
Adjusted net income, excluding all the above items, for the year ended December 31,
2010 would have amounted to $33.5 million or $0.40 per weighted average diluted
share compared to an adjusted net loss, excluding all the above items, for the
respective period of 2009 of $8.2 million or $0.12 per weighted average diluted
share. A reconciliation of adjusted Net income to Net Income is included in a
subsequent section of this release.
Included in the above adjusted net income is also the amortization of stock based
compensation expense of $9.6 million ($0.12 per weighted average diluted share)
and $19.8 million ($0.28 per weighted average diluted share), for the year ended
December 31, 2010 and 2009, respectively.
An average of 47.7 and 47.2 vessels were operated during the year ended
December 31, 2010 and 2009, respectively, earning a blended average time charter
equivalent rate of $23,421 and $21,932 per day, respectively. Please refer to a
subsequent section of this press release for a calculation of the TCE.
A reconciliation of adjusted EBITDA to Net Income and adjusted net income to net
income and for a calculation of the TCE is provided in a later section of this pres
release.
Fourth Quarter 2010 Corporate Developments
New-building Vessel
On October 1, 2010, we paid an amount of $15.6 million to the shipyard constructing
the M/V Mairaki, representing the scheduled installment due on the vessel launching.
The M/V Mairaki is a Capesize vessel with a carrying capacity of 181,000 dwt and
was delivered from the STX Shipyard in South Korea on January 10, 2011 as
discussed below.
Cashless exercise of warrants
4
On November 16, 2010, two holders of our warrants exercised the remaining
4,071,428 warrants on a cashless basis and received an aggregate of 1,813,108
Class A common shares. The number of common shares issued in connection with
the cashless exercise was based on the applicable market price of the common
shares, which was $6.31. No cash consideration was paid on the exercise of the
warrants for these common shares.
Recent Developments
On January 10, 2011, we took delivery of the vessel M/V Mairaki and paid an amount
of $17.6 million to the shipyard, representing the delivery installment and other minor
delivery costs of $0.2 million. Of this amount $16.1 million was funded from a
drawdown under the ship-owning company’s credit facility and the remaining amount
was financed from the Company’s own funds. Upon its delivery, the M/V Mairaki, a
Capesize vessel of 181,000 dwt commenced a period charter until February 2016 at
a daily rate of $28,000 plus a 50% profit sharing over the base rate based on the
monthly average BCI Time Charter Rate, as published daily by the Baltic Exchange
in London.
On January 7, 2011, we entered into a Memorandum of Agreement (MOA) to sell the
M/V Marybelle, a Handymax vessel of 42,552 dwt built in 1987, for net proceeds of
approximately $10.0 million and realized a gain of approximately $1.3 million which
will be recognized upon delivery of the vessel to her new owners. The vessel delivery
took place on February 10, 2011. Following the sale, an amount of approximately
$7.8 million was repaid under our Nordea credit facility.
As of February 2011, Mr. Lefteris Papatrifon has resigned as a director of the
Company in order to pursue his own private activities.
Vessels’ Fixtures
During December 2010, the M/V Iron Brooke (82,594 dwt, 2007), M/V Iron Lindrew
(82,598 dwt, 2007), M/V Iron Manolis (82,269 dwt, 2007), M/V Iron Anne (82,220 dwt,
2006), M/V Iron Kalypso (82,224 dwt, 2006), M/V Iron Fuzeyya (82,209 dwt, 2006)
and M/V Ore Hansa (82,209 dwt, 2006) were fixed under separate time charters for
a period of 11-13 months at a daily rate linked to the Baltic Panamax index (BPI) with
a guaranteed minimum rate (floor) ranging from $14,500 to $15,000 per day.
In February 2011, the M/V Coal Pride (72,493 dwt, 1999) and the M/V Coal Glory
(73,670 dwt, 1995) were fixed under separate time charters for a period of 11-13
months at a daily rate of $16,750.
Time Charter Coverage
As of today, we have secured under contracted employment 92% and 56% of our
available days of our Capesize vessels and Kamsarmax/Panamax vessels
respectively, for the year ending December 31, 2011 while our secured contracted
employment for the whole fleet is 56% for the same period.
Also, we have secured under contracted employment 79% of our available days of
our Capesize vessels for the year ending December 31, 2012.
Conference Call Details:
5
Tomorrow March 1, 2011 at 10:30 A.M EST, 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 March 8, 2011 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 s’ 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 Statements and Other Financial Data Follow -
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
6
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
FOR THE THREE MONTH PERIODS ENDED DECEMBER 31, 2009 AND 2010
(In thousands of U.S. Dollars, except for share and per share data)
Three- month period
ended December 31,
2009 2010
REVENUES:
Voyage revenues $ 102,634 $ 107,001
Time Charter fair value amortization 83,497 50,959
Revenue from managing related party vessels 106 61
Revenue from operations 186,237 158,021
EXPEN SES:
Voyage expenses 4,971 8,005
Charter hire expense 8,276 8,275
Charter hire amortization 10,068 10,069
Commissions to a related party 658 957
Vessel operating expenses 20,316 22,205
Depreciation expense 31,075 31,821
Dry-docking and special survey cost 1,622 1,723
General and administrative expenses 12,178 8,336
89,164 91,391
Loss on disposal of JV ownership interest (3,705) -
Income from operations 93,368 66,630
OTHER INCOME (EXPENSES):
Interest and finance costs (12,004) (7,514)
Interest income 286 380
Gains on derivative financial instruments 107 3,908
Foreign exchange losses (91) (1)
Other, net 225 715
Total other income (expenses), net (11,477) (2,512)
Net income before taxes and loss assumed (income
earned) by non controlling interest
81,891
64,118
US Source Income taxes (145) (114)
Net income 81,746 64,004
Loss assumed (income earned) by non-controlling interest 30 (388)
Net income attributable to Excel Maritime Carriers Ltd. $ 81,776 $ 63,616
Earnings per common share, basic $ 1.05 $ 0.78
Weighted average number of shares, basic 77,895,466 82,044,441
Earnings per common share, diluted $ 1.00 $ 0.76
Weighted average number of shares, diluted 81,546,216 84,117,892
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
7
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2010
(In thousands of U.S. Dollars, except for share and per share data)
Year ended December 31,
2009 2010
REVENUES:
Voyage revenues $ 391,746 $ 422,966
Time Charter fair value amortization 364,368 262,305
Revenue from managing related party vessels 488 376
Revenue from operations 756,602 685,647
EXPEN SES:
Voyage expenses 19,317 27,563
Charter hire expense 32,832 32,831
Charter hire amortization 39,952 39,945
Commissions to a related party 2,260 3,188
Vessel operating expenses 83,197 86,700
Depreciation expense 123,411 125,283
Dry-docking and special survey cost 11,379 11,243
General and administrative expenses 42,995 35,748
355,343 362,501
Gain on sale of vessel 61 -
Loss on disposal of JV ownership interest (3,705) -
Income from operations 397,615 323,146
OTHER INCOME (EXPENSES):
Interest and finance costs (57,096) (37,893)
Interest income 809 1,436
Losses on derivative financial instruments (1,126) (27,290)
Foreign exchange losses (322) (44)
Other, net 408 243
Total other income (expenses), net (57,327) (63,548)
Net income before taxes and loss assumed (income
earned) by non controlling interest
340,288
259,598
US Source Income taxes (660) (772)
Net income 339,628 258,826
Loss assumed (income earned) by non-controlling interest 154 (997)
Net income attributable to Excel Maritime Carriers Ltd. $ 339,782 $ 257,829
Earnings per common share, basic $ 5.03 $ 3.20
Weighted average number of shares, basic 67,565,178 80,629,221
Earnings per common share, diluted $ 4.85 $ 3.10
Weighted average number of shares, diluted 69,999,760 83,102,923
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
8
CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2009 AND 2010 (UNAUDITED)
(In thousands of U.S. Dollars)
ASSETS
December 31,
2009
December 31,
2010
CURRENT ASSETS:
Cash and cash equivalents $ 100,098 $ 65,917
Restricted cash 34,426 6,721
Accounts receivable 3,784 7,961
Other current assets 9,792 16,602
Total current assets 148,100 97,201
FIXED ASSETS:
Vessels, net 2,660,163 2,622,631
Advances for vessels under construction 71,184 76,585
Office furniture and equipment, net 1,450 1,147
Total fixed assets, net 2,732,797 2,700,363
OTHER NON CURRENT ASSETS:
Time charters acquired, net 224,311 184,366
Derivative financial instruments - 923
Restricted cash 24,974 48,967
Total assets $ 3,130,182 $ 3,031,820
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt, net of deferred financing fees $ 134,681 $ 107,369
Accounts payable 5,349 11,101
Other current liabilities 47,801 32,322
Derivative financial instruments 29,343 21,945
Total current liabilities 217,174 172,737
Long-term debt, net of current portion and net of deferred financing
fees 1,121,765 1,046,672
Time charters acquired, net 280,413 18,108
Derivative financial instruments 24,558 30,155
Total liabilities 1,643,910 1,267,672
Commitments and contingencies - -
STOCKHOLDERS’ EQUITY:
Preferred stock - -
Common stock 799 851
Additional paid-in capital 1,046,606 1,061,134
Other Comprehensive Income (loss) (85) 211
Retained earnings 433,845 691,674
Less: Treasury stock (189) (189)
Excel Maritime Carriers Ltd. Stockholders’ equity 1,480,976 1,753,681
Non-controlling interests 5,296 10,467
Total Stockholders’ Equity 1,486,272 1,764,148
Total liabilities and stockholders’ equity $ 3,130,182 $ 3,031,820
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
9
CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2010
(In thousands of U.S. Dollars)
Year ended December 31,
2009 2010
Cash Flows from Operating Activities:
Net income $ 339,628 $ 258,826
Adjustments to reconcile net income to net cash provided by
operating activities
(194,786)
(79,117)
Changes in operating assets and liabilities:
Operating assets 3,629 (11,483)
Operating liabilities (1,219) (9,727)
Net Cash provided by Operating Activities $ 147,252 $ 158,499
Cash Flows from Investing Activities:
Advances for vessels under construction (9,379) (92,701)
Additions to vessel cost (113) (13)
Additions to office furniture and equipment (146) (135)
Proceeds received from Oceanaut liquidation 5,212 -
Joint ventures ownership transfer (1,591) -
Proceeds from sale of vessel 3,735 -
Net cash used in Investing Activities $ (2,282) $ (92,849)
Cash Flows from Financing Activities:
(Increase) decrease in restricted cash (34,400) 3,712
Proceeds from long-term debt 5,067 72,967
Repayment of long-term debt (216,851) (184,815)
Payment of financing costs (1,938) (802)
Issuance of common stock-related party 44,983 4,933
Issuance of common stock 45,147 -
Capital contributions from non-controlling interest owners 3,328 4,174
Net cash used in Financing Activities $ (154,664) $ (99,831)
Net decrease in cash and cash equivalents (9,694) (34,181)
Cash and cash equivalents at beginning of year 109,792 100,098
Cash and cash equivalents at end of the year $ 100,098 $ 65,917
SUP PLEM ENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Interest payments $ 56,159 $ 31,950
U.S. Source Income taxes 740 871
Adjusted EBITDA Reconciliation
10
(all amounts in thousands of U.S. Dollars)
Three- months ended
December 31,
Year
ended December 31,
2009 2010 2009 2010
Net income $ 81,776 $ 63,616 $ 339,782 $ 257,829
Interest and finance costs, net (1) 19,675 13,995 84,651 65,690
Depreciation 31,075 31,821 123,411 125,283
Dry-dock and special survey cost 1,622 1,723 11,379 11,243
Loss on disposal of JV ownership
interest
3,705
-
3,705
-
Unrealized gain on derivative
financial instruments
(8,064)
(10,769)
(27,238)
(1,943)
Amortization of T/C fair values (2) (73,429) (40,890) (324,416) (222,360)
Stock based compensation 5,528 2,247 19,847 9,647
Gain on sale of vessel - - (61) -
Taxes 145 114 660 772
Adjusted EBITDA $ 62,033 $ 61,857 $ 231,720 $ 246,161
(1) Includes swap interest paid and received
(2) Analysis:
Three-months ended
December 31,
Year
ended December 31,
2009 2010 2009 2010
Non-cash amortization of
unfavorable time charters in revenue
$
(71,883)
$
(50,959)
$
(301,280)
$
(235,379)
Non-cash accelerated amortization
of M/V Sandra, Coal Pride and Grain
Harvester time charter fair value due
to charter termination
(11,614)
-
(63,088)
-
Non-cash accelerated amortization
of M/V Iron Miner time charter fair
value due to charter termination
-
-
-
(26,926)
Non-cash amortization of favorable
time charters in charter hire expense
10,068
10,069
39,952
39,945
$ (73,429) $ (40,890) $ (324,416) $ (222,360)
Reconciliation of Net Income to Adjusted Net Income (loss)
(all amounts in thousands of U.S. Dollars)
Three-months ended
December 31,
Year
Ended December 31,
2009 2010 2009 2010
Net income $ 81,776 $ 63,616 $ 339,782 $ 257,829
Unrealized gain on derivative
financial instruments
(8,064)
(10,769)
(27,238)
(1,943)
Gain on sale of vessel - - (61) -
Loss on disposal of JV ownership
interest
3,705
-
3,705
-
Amortization of T/C fair values (73,429) (40,890) (324,416) (222,360)
Adjusted Net Income (loss) $ 3,988 $ 11,957 $ (8,228) $ 33,526
Reconciliation of Earnings per Share (Diluted) to Adjusted Earnings (losses) per Share (Diluted)
11
(all amounts in U.S. Dollars)
Three month period
ended December 31,
Year
Ended December 31,
2009 2010 2009 2010
Earnings per Share (Diluted) $ 1.00 $ 0.76 $ 4.85 $ 3.10
Unrealized gain on derivative
financial instruments
(0.10)
(0.13)
(0.41)
(0.02)
Gain on sale of vessel - - - (*) -
Loss on disposal of JV ownership
interest
0.05
-
0.07
-
Amortization of T/C fair values (0.90) (0.49) (4.63) (2.68)
Adjusted Earnings (losses) per
Share (Diluted)
$
0.05
$
0.14
$
(0.12)
$
0.40
(*) Effect insignificant
Disclosure of Non-GAAP Financial Measures
Adjusted EBITDA represents net income plus net interest expense, depreciation,
amortization, and taxes eliminating the effect of deferred stock-based compensation,
gains or losses on the sale of vessels, amortization of deferred time charter assets
and liabilities and unrealized gains or losses on 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 represents net income plus unrealized gains or losses from our
derivative transactions and any gains or losses on sale of vessels, both of which are
significant non-cash items and eliminating the effect of deferred time charter assets
and liabilities. Adjusted Earnings per Share (diluted) represents Adjusted Net Income
divided by the 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. Excel has included an adjusted net income and adjusted earnings per
share (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 and, together with seven Panamax vessels under bareboat charters and one
Capesize vessel that operates through a joint venture in which it participates by
71.4%, operates 48 vessels (seven Capesize, 14 Kamsarmax, 21 Panamax, two
Supramax and four Handymax vessels) with a total carrying capacity of over 4.0
million DWT.
12
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.
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:
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
13
APPENDIX
The following key indicators highlight the Company’s financial and operating
performance for the quarter and year ended December 31, 2010 compared to the
corresponding periods in the prior year.
Vessel Employment
(In U.S. Dollars per day, unless otherwise stated)
Three- months
ended December 31,
Year ended
December 31,
2009 2010 2009 2010
Total calendar days 4,324 4,416 17,229 17,401
Available days under period charter 2,777 2,791 11,363 10,785
Available days under spot/short duration charter 1,499 1,578 5,515 5,961
Utilization 98.9% 98.9% 98.0% 96.2%
Time charter equivalent per ship per day-period 23,866 25,238 25,344 24,635
Time charter equivalent per ship per day-spot 20,510 17,494 14,901 21,226
Time charter equivalent per ship per day-weighted
average
22,686
22,440
21,932
23,421
Net daily revenue per ship per day 22,434 22,201 21,485 22,540
Vessel operating expenses per ship per day (4,698) (5,028) (4,829) (4,982)
Net Operating cash flows per ship per day before G&A
expenses
17,736
17,173
16,656
17,558
14
Glossary of Terms
Average number of vessels: This is the number of vessels that constituted our fleet
for the relevant period, as measured by the sum of the number of calendar days each
vessel was a part of our fleet during the period divided by the number of calendar
days in that period.
Total calendar days: We define these as the total days we owned the vessels in our
fleet for the relevant period including off hire days associated with major repairs, dry
dockings or special or intermediate surveys. Calendar days are an indicator of the
size of the fleet over a period and affect both the amount of revenues and the amount
of expenses that are recorded during a period.
Available days: These are the calendar days less the aggregate number of off-hire
days associated with major repairs, dry docks or special or intermediate surveys. 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 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)
Three-months ended
December 31,
Year ended
December 31 ,
2009 2010 2009 2010
Voyage revenues 102,634 107,001 391,746 422,966
Voyage expenses (5,629) (8,962) (21,577) (30,751)
Total revenue, net of voyage
expenses
97,005
98,039
370,169
392,215
Total available days 4,276 4,369 16,878 16,746
Daily Time charter equivalent $22,686 $22,440 $21,932 $23,421
Net daily revenue: We define this as the daily TCE rate including idle time.
15
Daily vessel operating expenses: This includes crew costs, provisions, deck and
engine stores, lubricating oil, insurance, maintenance and repairs and is calculated
by dividing vessel operating expenses by total calendar days for the relevant time
period.
Daily general and administrative expense: This is calculated by dividing general
and administrative expense by total calendar days for the relevant time period.
Expected Amortization Schedule for Fair Valued Time Charters for Next Year
(in USD millions) 1Q’11 2Q’11 3Q’11 4Q’11 Total
Amortization of unfavorable time charters (1) $0.8 $0.8 $0.9 $0.9 $3.4
Amortization of favorable time charters (2) $(9.9) $(10.1) $(10.1) $(10.1) $(40.2)
(1) Adjustment to Revenue from operations i.e. increases revenues
(2) Adjustment to Charter hire expenses i.e. increases charter hire expense
16
Fleet List as of February 25, 2011:
Vessel Name Dwt Year Built Charter Type Daily rate Average Charter
Expiration
Mairaki (1) 181,000 2011 Period $28,000 Feb 2016
Christine (1) (2) 180,000 2010 Period $25,000 Aug 2015
Sandra (1) 180,274 2008 Period $26,500 Feb 2016
Iron Miner 177,931 2007 Period $41,355 Feb 2012
Kirmar 164,218 2001 Period $49,000 (net) May 2013
Iron Beauty 164,218 2001 Spot
Lowlands Beilun (3) 170,162 1999 Period $28,000 Sept 2015
Total Capesize 1,217,803
Iron Manolis (4) 82,269 2007 Period $14,500 (floor) Dec 2011
Iron Brooke(4) 82,594 2007 Period $14,500 (floor) Dec 2011
Iron Lindrew(4) 82,598 2007 Period $14,500 (floor) Dec 2011
Coal Hunter 82,298 2006 Spot
Pascha 82,574 2006 Period $24,000 Nov 2011
Coal Gypsy 82,221 2006 Period $24,000 Nov 2011
Iron Anne(4) 82,220 2006 Period $14,500 (floor) Dec 2011
Iron Vassilis 82,257 2006 Spot
Iron Bill 82,187 2006 Spot
Santa Barbara 82,266 2006 Spot
Ore Hansa(4) 82,209 2006 Period $15,000 (floor) Feb 2012
Iron Kalypso(4) 82,224 2006 Period $15,000 (floor) Feb 2012
Iron Fuzeyya(4) 82,209 2006 Period $15,000 (floor) Jan 2012
Iron Bradyn 82,769 2005 Spot
Total Kamsarmax 1,152,895
Grain Harvester 76,417 2004 Period $30,000 May 2011
Grain Express 76,466 2004 Period $24,000 Dec 2011
Iron Knight 76,429 2004 Spot
Coal Pride 72,493 1999 Period $16,750 Apr 2012
Isminaki 74,577 1998 Spot
Angela Star 73,798 1998 Spot
Elinakos 73,751 1997 Spot
Happy Day 71,694 1997 Period $27,000 Jul 2011
Iron Man (A) 72,861 1997 Spot
Coal Age (A) 72,824 1997 Spot
Fearless I (A) 73,427 1997 Period $24,650 Oct 2011
Barbara (A) 73,307 1997 Spot
Linda Leah (A) 73,317 1997 Period $24,000 Apr 2011
King Coal (A) 72,873 1997 Period $56,000 Jul 2011
Coal Glory (A) 73,670 1995 Period $16,750 Apr 2012
Powerful 70,083 1994 Period $25,000 Aug 2011
First Endeavour 69,111 1994 Spot
Rodon 73,656 1993 Spot
Birthday 71,504 1993 Spot
Renuar 70,155 1993 Period $22,500 Mar 2011
Fortezza 69,634 1993 Period $27,000 Jul 2011
Total Panamax 1,532,047
July M 55,567 2005 Spot
Mairouli 53,206 2005 Spot
Total Supramax 108,773
Emerald 45,588 1998 Spot
Princess I 38,858 1994 Spot
Attractive 41,524 1985 Spot
Lady 41,090 1985 Spot
Total Handymax 167,060
Total Fleet 4,178,578
Average age 10.0 Yrs
17
(1) The charter has a 50% profit sharing 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 charter has a 50% profit sharing over the base rate based on the monthly average BCI
Time Charter Rate, as published daily by the Baltic Exchange in London.
(4) Charter rate based on the average of the AV4 BPI rates, as published by the Baltic
Exchange for the preceding 15 days prior to hire payment with a guaranteed minimum rate
(floor) ranging from $14,500 to $15,000 per day.
New-building contracts (B) Type Dwt Original scheduled delivery
Fritz (C) Capesize 180,000 May 2010
Benthe (C) Capesize 180,000 June 2010
Gayle Frances (C) Capesize 180,000 July 2010
Iron Lena (C) Capesize 180,000 August 2010
(A) These vessels were sold in 2007 and leased back on a bareboat charter through July
2015.
(B) No refund guarantee has been received for these newbuildings and Excel does not believe
that the respective new building contracts will materialize. As of February 28, 2011, all the
vessels are delayed in delivery and they may never be delivered at all.
(C) Excel holds a 50% interest in the joint ventures that will own these vessels.
and Year ended December 31, 2010
ATHENS, GREECE – February 28, 2011 – 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 fourth quarter and year
ended December 31, 2010.
Fourth Quarter and Twelve-Month 2010 Highlights:
Three-Months
ended
December 31,
Year ended
December 31,
2009 2010 2009 2010
(amounts in millions of U.S Dollars, except per share
data and daily TCE)
Voyage Revenues $102.6 $107.0 $391.7 $423.0
Net Income $81.8 $63.6 $339.8 $257.8
Adjusted Net Income (Loss) $4.0 $12.0 $(8.2) $33.5
Earnings per Share-Diluted $1.00 $0.76 $4.85 $3.10
Adjusted Earnings (losses) per Share-Diluted $0.05 $0.14 $(0.12) $0.40
Adjusted EBITDA $62.0 $61.9 $231.7 $246.2
Time Charter Equivalent (TCE) per day $22,686 $22,440 $21,932 $23,421
A reconciliation of the non-GAAP measures discussed above is included in a later
section of this release.
Management Commentary:
Pavlos Kanellopoulos, Chief Financial Officer of Excel, stated, “We are pleased to
report a profitable set of operating results for the 4th Quarter of 2010, complementing
our consistently strong performance throughout 2010. In particular, against a volatile
freight environment during the 4th Quarter, we recorded Adjusted EBITDA of $61.9m
and Adjusted EPS of $0.14 contributing to full year 2010 Adjusted EBITDA and
Adjusted EPS of $246.2m and $0.40 respectively. Throughout the past period we
continued to fix our open vessels under time charters reaching a fleet wide time
charter coverage of 56% for 2011, which will enable us to increase our cash flow
visibility and further lower our breakeven levels. While we expect that deliveries of
new vessels in 2011 will cause some volatility in freight rates, we remain cautiously
optimistic in the dry bulk market outlook based on emerging markets being the
principal drivers of growth. We believe that Excel with its diversified quality asset
base and absence of newbuild commitments is well positioned to generate strong
cash flows and returns through the investment cycle.”
2
Fourth Quarter 2010 Results:
Excel reported voyage revenues for the fourth quarter of 2010 amounted to $107.0
million as compared to $102.6 million for the same period in 2009, an increase of
approximately 4.3%.
Adjusted EBITDA for the fourth quarter of 2010 was $61.9 million compared to $62.0
million for the fourth quarter of 2009, a decrease of approximately 0.2%.
Net profit for the quarter amounted to $63.6 million or $0.76 per weighted average
diluted share compared to a net profit of $81.8 million or $1.00 per weighted average
diluted share in the fourth quarter of 2009.
The fourth quarter 2010 results include a non-cash unrealized gain on derivative
financial instruments of $10.8 million compared to a non-cash unrealized gain on
derivative financial instruments of $8.1 million in the corresponding period in 2009.
Included in the above net income is also the amortization of favorable and
unfavorable time charters that were recorded upon acquiring Quintana Maritime
Limited (“Quintana”) on April 15, 2008 amounting to a net income of $40.9 million
($0.49 per weighted average diluted share) and $73.4 million ($0.90 per weighted
average diluted share) for the fourth quarter of 2010 and 2009, respectively.
In addition, the fourth quarter 2009 results include a non cash loss on disposal of an
ownership interest in one of our joint ventures amounting to $3.7 million.
Adjusted net income, excluding all the above items, for the fourth quarter of 2010
would have amounted to $12.0 million or $0.14 per weighted average diluted share
compared to an adjusted net income, excluding all the above items, for the fourth
quarter of 2009 of $4.0 million or $0.05 per weighted average diluted share.
Included in the above adjusted net income is also the amortization of stock based
compensation expense of $2.2 million ($0.03 per weighted average diluted share)
and $5.5 million ($0.07 per weighted average diluted share), for the quarter ended
December 31, 2010 and 2009, respectively.
An average of 48.0 and 47.0 vessels were operated during the fourth quarter of 2010
and 2009, respectively, earning a blended average time charter equivalent rate of
$22,440 and $22,686 per day, respectively.
A reconciliation of adjusted EBITDA to Net Income and adjusted net income to net
income and for a calculation of the TCE is provided in a later section of this press
release.
Year 2010 Results:
Voyage revenues for the year ended December 31, 2010 amounted to $423.0 million
as compared to $391.7 million for the same period in 2009, an increase of
approximately 8%.
Adjusted EBITDA for the year was $246.2 million compared to $231.7 million for the
respective period of 2009, an increase of approximately 6.3%.
3
Net profit for the year amounted to $257.8 million or $3.10 per weighted average
diluted share compared to a net profit of $339.8 million or $4.85 per weighted
average diluted share in the respective period of 2009.
The results for the year ended December 31, 2010 include a non-cash unrealized
gain on derivative financial instruments of $1.9 million compared to a non-cash
unrealized gain on derivative financial instruments of $27.2 million in the
corresponding period in 2009. In addition, the results for the year ended December
31, 2009 include $0.1 million of a non-cash gain on sale of a vessel and $3.7 million
relating to the loss on disposal of our ownership interest in one of our joint ventures.
Included in the above net income is also the amortization of favorable and
unfavorable time charters that were recorded upon acquiring Quintana on April 15,
2008 amounting to a net income of $222.4 million ($2.68 per weighted average
diluted share) and $324.4 million ($4.63 per weighted average diluted share) for the
year ended December 31, 2010 and 2009, respectively.
Adjusted net income, excluding all the above items, for the year ended December 31,
2010 would have amounted to $33.5 million or $0.40 per weighted average diluted
share compared to an adjusted net loss, excluding all the above items, for the
respective period of 2009 of $8.2 million or $0.12 per weighted average diluted
share. A reconciliation of adjusted Net income to Net Income is included in a
subsequent section of this release.
Included in the above adjusted net income is also the amortization of stock based
compensation expense of $9.6 million ($0.12 per weighted average diluted share)
and $19.8 million ($0.28 per weighted average diluted share), for the year ended
December 31, 2010 and 2009, respectively.
An average of 47.7 and 47.2 vessels were operated during the year ended
December 31, 2010 and 2009, respectively, earning a blended average time charter
equivalent rate of $23,421 and $21,932 per day, respectively. Please refer to a
subsequent section of this press release for a calculation of the TCE.
A reconciliation of adjusted EBITDA to Net Income and adjusted net income to net
income and for a calculation of the TCE is provided in a later section of this pres
release.
Fourth Quarter 2010 Corporate Developments
New-building Vessel
On October 1, 2010, we paid an amount of $15.6 million to the shipyard constructing
the M/V Mairaki, representing the scheduled installment due on the vessel launching.
The M/V Mairaki is a Capesize vessel with a carrying capacity of 181,000 dwt and
was delivered from the STX Shipyard in South Korea on January 10, 2011 as
discussed below.
Cashless exercise of warrants
4
On November 16, 2010, two holders of our warrants exercised the remaining
4,071,428 warrants on a cashless basis and received an aggregate of 1,813,108
Class A common shares. The number of common shares issued in connection with
the cashless exercise was based on the applicable market price of the common
shares, which was $6.31. No cash consideration was paid on the exercise of the
warrants for these common shares.
Recent Developments
On January 10, 2011, we took delivery of the vessel M/V Mairaki and paid an amount
of $17.6 million to the shipyard, representing the delivery installment and other minor
delivery costs of $0.2 million. Of this amount $16.1 million was funded from a
drawdown under the ship-owning company’s credit facility and the remaining amount
was financed from the Company’s own funds. Upon its delivery, the M/V Mairaki, a
Capesize vessel of 181,000 dwt commenced a period charter until February 2016 at
a daily rate of $28,000 plus a 50% profit sharing over the base rate based on the
monthly average BCI Time Charter Rate, as published daily by the Baltic Exchange
in London.
On January 7, 2011, we entered into a Memorandum of Agreement (MOA) to sell the
M/V Marybelle, a Handymax vessel of 42,552 dwt built in 1987, for net proceeds of
approximately $10.0 million and realized a gain of approximately $1.3 million which
will be recognized upon delivery of the vessel to her new owners. The vessel delivery
took place on February 10, 2011. Following the sale, an amount of approximately
$7.8 million was repaid under our Nordea credit facility.
As of February 2011, Mr. Lefteris Papatrifon has resigned as a director of the
Company in order to pursue his own private activities.
Vessels’ Fixtures
During December 2010, the M/V Iron Brooke (82,594 dwt, 2007), M/V Iron Lindrew
(82,598 dwt, 2007), M/V Iron Manolis (82,269 dwt, 2007), M/V Iron Anne (82,220 dwt,
2006), M/V Iron Kalypso (82,224 dwt, 2006), M/V Iron Fuzeyya (82,209 dwt, 2006)
and M/V Ore Hansa (82,209 dwt, 2006) were fixed under separate time charters for
a period of 11-13 months at a daily rate linked to the Baltic Panamax index (BPI) with
a guaranteed minimum rate (floor) ranging from $14,500 to $15,000 per day.
In February 2011, the M/V Coal Pride (72,493 dwt, 1999) and the M/V Coal Glory
(73,670 dwt, 1995) were fixed under separate time charters for a period of 11-13
months at a daily rate of $16,750.
Time Charter Coverage
As of today, we have secured under contracted employment 92% and 56% of our
available days of our Capesize vessels and Kamsarmax/Panamax vessels
respectively, for the year ending December 31, 2011 while our secured contracted
employment for the whole fleet is 56% for the same period.
Also, we have secured under contracted employment 79% of our available days of
our Capesize vessels for the year ending December 31, 2012.
Conference Call Details:
5
Tomorrow March 1, 2011 at 10:30 A.M EST, 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 March 8, 2011 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 s’ 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 Statements and Other Financial Data Follow -
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
6
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
FOR THE THREE MONTH PERIODS ENDED DECEMBER 31, 2009 AND 2010
(In thousands of U.S. Dollars, except for share and per share data)
Three- month period
ended December 31,
2009 2010
REVENUES:
Voyage revenues $ 102,634 $ 107,001
Time Charter fair value amortization 83,497 50,959
Revenue from managing related party vessels 106 61
Revenue from operations 186,237 158,021
EXPEN SES:
Voyage expenses 4,971 8,005
Charter hire expense 8,276 8,275
Charter hire amortization 10,068 10,069
Commissions to a related party 658 957
Vessel operating expenses 20,316 22,205
Depreciation expense 31,075 31,821
Dry-docking and special survey cost 1,622 1,723
General and administrative expenses 12,178 8,336
89,164 91,391
Loss on disposal of JV ownership interest (3,705) -
Income from operations 93,368 66,630
OTHER INCOME (EXPENSES):
Interest and finance costs (12,004) (7,514)
Interest income 286 380
Gains on derivative financial instruments 107 3,908
Foreign exchange losses (91) (1)
Other, net 225 715
Total other income (expenses), net (11,477) (2,512)
Net income before taxes and loss assumed (income
earned) by non controlling interest
81,891
64,118
US Source Income taxes (145) (114)
Net income 81,746 64,004
Loss assumed (income earned) by non-controlling interest 30 (388)
Net income attributable to Excel Maritime Carriers Ltd. $ 81,776 $ 63,616
Earnings per common share, basic $ 1.05 $ 0.78
Weighted average number of shares, basic 77,895,466 82,044,441
Earnings per common share, diluted $ 1.00 $ 0.76
Weighted average number of shares, diluted 81,546,216 84,117,892
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
7
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2010
(In thousands of U.S. Dollars, except for share and per share data)
Year ended December 31,
2009 2010
REVENUES:
Voyage revenues $ 391,746 $ 422,966
Time Charter fair value amortization 364,368 262,305
Revenue from managing related party vessels 488 376
Revenue from operations 756,602 685,647
EXPEN SES:
Voyage expenses 19,317 27,563
Charter hire expense 32,832 32,831
Charter hire amortization 39,952 39,945
Commissions to a related party 2,260 3,188
Vessel operating expenses 83,197 86,700
Depreciation expense 123,411 125,283
Dry-docking and special survey cost 11,379 11,243
General and administrative expenses 42,995 35,748
355,343 362,501
Gain on sale of vessel 61 -
Loss on disposal of JV ownership interest (3,705) -
Income from operations 397,615 323,146
OTHER INCOME (EXPENSES):
Interest and finance costs (57,096) (37,893)
Interest income 809 1,436
Losses on derivative financial instruments (1,126) (27,290)
Foreign exchange losses (322) (44)
Other, net 408 243
Total other income (expenses), net (57,327) (63,548)
Net income before taxes and loss assumed (income
earned) by non controlling interest
340,288
259,598
US Source Income taxes (660) (772)
Net income 339,628 258,826
Loss assumed (income earned) by non-controlling interest 154 (997)
Net income attributable to Excel Maritime Carriers Ltd. $ 339,782 $ 257,829
Earnings per common share, basic $ 5.03 $ 3.20
Weighted average number of shares, basic 67,565,178 80,629,221
Earnings per common share, diluted $ 4.85 $ 3.10
Weighted average number of shares, diluted 69,999,760 83,102,923
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
8
CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2009 AND 2010 (UNAUDITED)
(In thousands of U.S. Dollars)
ASSETS
December 31,
2009
December 31,
2010
CURRENT ASSETS:
Cash and cash equivalents $ 100,098 $ 65,917
Restricted cash 34,426 6,721
Accounts receivable 3,784 7,961
Other current assets 9,792 16,602
Total current assets 148,100 97,201
FIXED ASSETS:
Vessels, net 2,660,163 2,622,631
Advances for vessels under construction 71,184 76,585
Office furniture and equipment, net 1,450 1,147
Total fixed assets, net 2,732,797 2,700,363
OTHER NON CURRENT ASSETS:
Time charters acquired, net 224,311 184,366
Derivative financial instruments - 923
Restricted cash 24,974 48,967
Total assets $ 3,130,182 $ 3,031,820
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt, net of deferred financing fees $ 134,681 $ 107,369
Accounts payable 5,349 11,101
Other current liabilities 47,801 32,322
Derivative financial instruments 29,343 21,945
Total current liabilities 217,174 172,737
Long-term debt, net of current portion and net of deferred financing
fees 1,121,765 1,046,672
Time charters acquired, net 280,413 18,108
Derivative financial instruments 24,558 30,155
Total liabilities 1,643,910 1,267,672
Commitments and contingencies - -
STOCKHOLDERS’ EQUITY:
Preferred stock - -
Common stock 799 851
Additional paid-in capital 1,046,606 1,061,134
Other Comprehensive Income (loss) (85) 211
Retained earnings 433,845 691,674
Less: Treasury stock (189) (189)
Excel Maritime Carriers Ltd. Stockholders’ equity 1,480,976 1,753,681
Non-controlling interests 5,296 10,467
Total Stockholders’ Equity 1,486,272 1,764,148
Total liabilities and stockholders’ equity $ 3,130,182 $ 3,031,820
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
9
CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2009 AND 2010
(In thousands of U.S. Dollars)
Year ended December 31,
2009 2010
Cash Flows from Operating Activities:
Net income $ 339,628 $ 258,826
Adjustments to reconcile net income to net cash provided by
operating activities
(194,786)
(79,117)
Changes in operating assets and liabilities:
Operating assets 3,629 (11,483)
Operating liabilities (1,219) (9,727)
Net Cash provided by Operating Activities $ 147,252 $ 158,499
Cash Flows from Investing Activities:
Advances for vessels under construction (9,379) (92,701)
Additions to vessel cost (113) (13)
Additions to office furniture and equipment (146) (135)
Proceeds received from Oceanaut liquidation 5,212 -
Joint ventures ownership transfer (1,591) -
Proceeds from sale of vessel 3,735 -
Net cash used in Investing Activities $ (2,282) $ (92,849)
Cash Flows from Financing Activities:
(Increase) decrease in restricted cash (34,400) 3,712
Proceeds from long-term debt 5,067 72,967
Repayment of long-term debt (216,851) (184,815)
Payment of financing costs (1,938) (802)
Issuance of common stock-related party 44,983 4,933
Issuance of common stock 45,147 -
Capital contributions from non-controlling interest owners 3,328 4,174
Net cash used in Financing Activities $ (154,664) $ (99,831)
Net decrease in cash and cash equivalents (9,694) (34,181)
Cash and cash equivalents at beginning of year 109,792 100,098
Cash and cash equivalents at end of the year $ 100,098 $ 65,917
SUP PLEM ENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Interest payments $ 56,159 $ 31,950
U.S. Source Income taxes 740 871
Adjusted EBITDA Reconciliation
10
(all amounts in thousands of U.S. Dollars)
Three- months ended
December 31,
Year
ended December 31,
2009 2010 2009 2010
Net income $ 81,776 $ 63,616 $ 339,782 $ 257,829
Interest and finance costs, net (1) 19,675 13,995 84,651 65,690
Depreciation 31,075 31,821 123,411 125,283
Dry-dock and special survey cost 1,622 1,723 11,379 11,243
Loss on disposal of JV ownership
interest
3,705
-
3,705
-
Unrealized gain on derivative
financial instruments
(8,064)
(10,769)
(27,238)
(1,943)
Amortization of T/C fair values (2) (73,429) (40,890) (324,416) (222,360)
Stock based compensation 5,528 2,247 19,847 9,647
Gain on sale of vessel - - (61) -
Taxes 145 114 660 772
Adjusted EBITDA $ 62,033 $ 61,857 $ 231,720 $ 246,161
(1) Includes swap interest paid and received
(2) Analysis:
Three-months ended
December 31,
Year
ended December 31,
2009 2010 2009 2010
Non-cash amortization of
unfavorable time charters in revenue
$
(71,883)
$
(50,959)
$
(301,280)
$
(235,379)
Non-cash accelerated amortization
of M/V Sandra, Coal Pride and Grain
Harvester time charter fair value due
to charter termination
(11,614)
-
(63,088)
-
Non-cash accelerated amortization
of M/V Iron Miner time charter fair
value due to charter termination
-
-
-
(26,926)
Non-cash amortization of favorable
time charters in charter hire expense
10,068
10,069
39,952
39,945
$ (73,429) $ (40,890) $ (324,416) $ (222,360)
Reconciliation of Net Income to Adjusted Net Income (loss)
(all amounts in thousands of U.S. Dollars)
Three-months ended
December 31,
Year
Ended December 31,
2009 2010 2009 2010
Net income $ 81,776 $ 63,616 $ 339,782 $ 257,829
Unrealized gain on derivative
financial instruments
(8,064)
(10,769)
(27,238)
(1,943)
Gain on sale of vessel - - (61) -
Loss on disposal of JV ownership
interest
3,705
-
3,705
-
Amortization of T/C fair values (73,429) (40,890) (324,416) (222,360)
Adjusted Net Income (loss) $ 3,988 $ 11,957 $ (8,228) $ 33,526
Reconciliation of Earnings per Share (Diluted) to Adjusted Earnings (losses) per Share (Diluted)
11
(all amounts in U.S. Dollars)
Three month period
ended December 31,
Year
Ended December 31,
2009 2010 2009 2010
Earnings per Share (Diluted) $ 1.00 $ 0.76 $ 4.85 $ 3.10
Unrealized gain on derivative
financial instruments
(0.10)
(0.13)
(0.41)
(0.02)
Gain on sale of vessel - - - (*) -
Loss on disposal of JV ownership
interest
0.05
-
0.07
-
Amortization of T/C fair values (0.90) (0.49) (4.63) (2.68)
Adjusted Earnings (losses) per
Share (Diluted)
$
0.05
$
0.14
$
(0.12)
$
0.40
(*) Effect insignificant
Disclosure of Non-GAAP Financial Measures
Adjusted EBITDA represents net income plus net interest expense, depreciation,
amortization, and taxes eliminating the effect of deferred stock-based compensation,
gains or losses on the sale of vessels, amortization of deferred time charter assets
and liabilities and unrealized gains or losses on 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 represents net income plus unrealized gains or losses from our
derivative transactions and any gains or losses on sale of vessels, both of which are
significant non-cash items and eliminating the effect of deferred time charter assets
and liabilities. Adjusted Earnings per Share (diluted) represents Adjusted Net Income
divided by the 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. Excel has included an adjusted net income and adjusted earnings per
share (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 and, together with seven Panamax vessels under bareboat charters and one
Capesize vessel that operates through a joint venture in which it participates by
71.4%, operates 48 vessels (seven Capesize, 14 Kamsarmax, 21 Panamax, two
Supramax and four Handymax vessels) with a total carrying capacity of over 4.0
million DWT.
12
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.
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:
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
13
APPENDIX
The following key indicators highlight the Company’s financial and operating
performance for the quarter and year ended December 31, 2010 compared to the
corresponding periods in the prior year.
Vessel Employment
(In U.S. Dollars per day, unless otherwise stated)
Three- months
ended December 31,
Year ended
December 31,
2009 2010 2009 2010
Total calendar days 4,324 4,416 17,229 17,401
Available days under period charter 2,777 2,791 11,363 10,785
Available days under spot/short duration charter 1,499 1,578 5,515 5,961
Utilization 98.9% 98.9% 98.0% 96.2%
Time charter equivalent per ship per day-period 23,866 25,238 25,344 24,635
Time charter equivalent per ship per day-spot 20,510 17,494 14,901 21,226
Time charter equivalent per ship per day-weighted
average
22,686
22,440
21,932
23,421
Net daily revenue per ship per day 22,434 22,201 21,485 22,540
Vessel operating expenses per ship per day (4,698) (5,028) (4,829) (4,982)
Net Operating cash flows per ship per day before G&A
expenses
17,736
17,173
16,656
17,558
14
Glossary of Terms
Average number of vessels: This is the number of vessels that constituted our fleet
for the relevant period, as measured by the sum of the number of calendar days each
vessel was a part of our fleet during the period divided by the number of calendar
days in that period.
Total calendar days: We define these as the total days we owned the vessels in our
fleet for the relevant period including off hire days associated with major repairs, dry
dockings or special or intermediate surveys. Calendar days are an indicator of the
size of the fleet over a period and affect both the amount of revenues and the amount
of expenses that are recorded during a period.
Available days: These are the calendar days less the aggregate number of off-hire
days associated with major repairs, dry docks or special or intermediate surveys. 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 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)
Three-months ended
December 31,
Year ended
December 31 ,
2009 2010 2009 2010
Voyage revenues 102,634 107,001 391,746 422,966
Voyage expenses (5,629) (8,962) (21,577) (30,751)
Total revenue, net of voyage
expenses
97,005
98,039
370,169
392,215
Total available days 4,276 4,369 16,878 16,746
Daily Time charter equivalent $22,686 $22,440 $21,932 $23,421
Net daily revenue: We define this as the daily TCE rate including idle time.
15
Daily vessel operating expenses: This includes crew costs, provisions, deck and
engine stores, lubricating oil, insurance, maintenance and repairs and is calculated
by dividing vessel operating expenses by total calendar days for the relevant time
period.
Daily general and administrative expense: This is calculated by dividing general
and administrative expense by total calendar days for the relevant time period.
Expected Amortization Schedule for Fair Valued Time Charters for Next Year
(in USD millions) 1Q’11 2Q’11 3Q’11 4Q’11 Total
Amortization of unfavorable time charters (1) $0.8 $0.8 $0.9 $0.9 $3.4
Amortization of favorable time charters (2) $(9.9) $(10.1) $(10.1) $(10.1) $(40.2)
(1) Adjustment to Revenue from operations i.e. increases revenues
(2) Adjustment to Charter hire expenses i.e. increases charter hire expense
16
Fleet List as of February 25, 2011:
Vessel Name Dwt Year Built Charter Type Daily rate Average Charter
Expiration
Mairaki (1) 181,000 2011 Period $28,000 Feb 2016
Christine (1) (2) 180,000 2010 Period $25,000 Aug 2015
Sandra (1) 180,274 2008 Period $26,500 Feb 2016
Iron Miner 177,931 2007 Period $41,355 Feb 2012
Kirmar 164,218 2001 Period $49,000 (net) May 2013
Iron Beauty 164,218 2001 Spot
Lowlands Beilun (3) 170,162 1999 Period $28,000 Sept 2015
Total Capesize 1,217,803
Iron Manolis (4) 82,269 2007 Period $14,500 (floor) Dec 2011
Iron Brooke(4) 82,594 2007 Period $14,500 (floor) Dec 2011
Iron Lindrew(4) 82,598 2007 Period $14,500 (floor) Dec 2011
Coal Hunter 82,298 2006 Spot
Pascha 82,574 2006 Period $24,000 Nov 2011
Coal Gypsy 82,221 2006 Period $24,000 Nov 2011
Iron Anne(4) 82,220 2006 Period $14,500 (floor) Dec 2011
Iron Vassilis 82,257 2006 Spot
Iron Bill 82,187 2006 Spot
Santa Barbara 82,266 2006 Spot
Ore Hansa(4) 82,209 2006 Period $15,000 (floor) Feb 2012
Iron Kalypso(4) 82,224 2006 Period $15,000 (floor) Feb 2012
Iron Fuzeyya(4) 82,209 2006 Period $15,000 (floor) Jan 2012
Iron Bradyn 82,769 2005 Spot
Total Kamsarmax 1,152,895
Grain Harvester 76,417 2004 Period $30,000 May 2011
Grain Express 76,466 2004 Period $24,000 Dec 2011
Iron Knight 76,429 2004 Spot
Coal Pride 72,493 1999 Period $16,750 Apr 2012
Isminaki 74,577 1998 Spot
Angela Star 73,798 1998 Spot
Elinakos 73,751 1997 Spot
Happy Day 71,694 1997 Period $27,000 Jul 2011
Iron Man (A) 72,861 1997 Spot
Coal Age (A) 72,824 1997 Spot
Fearless I (A) 73,427 1997 Period $24,650 Oct 2011
Barbara (A) 73,307 1997 Spot
Linda Leah (A) 73,317 1997 Period $24,000 Apr 2011
King Coal (A) 72,873 1997 Period $56,000 Jul 2011
Coal Glory (A) 73,670 1995 Period $16,750 Apr 2012
Powerful 70,083 1994 Period $25,000 Aug 2011
First Endeavour 69,111 1994 Spot
Rodon 73,656 1993 Spot
Birthday 71,504 1993 Spot
Renuar 70,155 1993 Period $22,500 Mar 2011
Fortezza 69,634 1993 Period $27,000 Jul 2011
Total Panamax 1,532,047
July M 55,567 2005 Spot
Mairouli 53,206 2005 Spot
Total Supramax 108,773
Emerald 45,588 1998 Spot
Princess I 38,858 1994 Spot
Attractive 41,524 1985 Spot
Lady 41,090 1985 Spot
Total Handymax 167,060
Total Fleet 4,178,578
Average age 10.0 Yrs
17
(1) The charter has a 50% profit sharing 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 charter has a 50% profit sharing over the base rate based on the monthly average BCI
Time Charter Rate, as published daily by the Baltic Exchange in London.
(4) Charter rate based on the average of the AV4 BPI rates, as published by the Baltic
Exchange for the preceding 15 days prior to hire payment with a guaranteed minimum rate
(floor) ranging from $14,500 to $15,000 per day.
New-building contracts (B) Type Dwt Original scheduled delivery
Fritz (C) Capesize 180,000 May 2010
Benthe (C) Capesize 180,000 June 2010
Gayle Frances (C) Capesize 180,000 July 2010
Iron Lena (C) Capesize 180,000 August 2010
(A) These vessels were sold in 2007 and leased back on a bareboat charter through July
2015.
(B) No refund guarantee has been received for these newbuildings and Excel does not believe
that the respective new building contracts will materialize. As of February 28, 2011, all the
vessels are delayed in delivery and they may never be delivered at all.
(C) Excel holds a 50% interest in the joint ventures that will own these vessels.