Yesterday after market close, Excel Maritime Carriers Ltd. (NYSE:EXM - News), a global dry bulk carrier, declared financial results for the second quarter of 2011, which barely meets the Zacks Consensus Estimate.
GAAP net loss in the second quarter of 2011 was $15.7 million or 19 cents per share compared with a net income of $79.2 million or 95 cents per share in the year-ago quarter. However, quarterly adjusted (excluding special-items) EPS of a loss of 7 cents was exactly in line with the Zacks Consensus Estimate.
Quarterly total revenue was a little over $92.8 million compared with $198 million in the prior-year quarter. This huge reduction was primarily attributable to extremely volatile freight environment of the global drybulk shipping industry.
Nevertheless, quarterly Voyage revenue of approximately $92 million was well above the Zacks Consensus Estimate of $83 million. In the reported quarter, Time Charter Equivalent (:TCE) per day was $18,932 compared with $24,062 in the prior-year quarter.
Quarterly total operating expenses were nearly $95.2 million, up 0.2% year over year. However, operating loss in the reported quarter was $2.4 million compared with an operating income of $103.1 million in the year-ago quarter. Quarterly adjusted EBITDA was $44 million, down 26.8% year over year.
An average of 48 Excel Maritime vessels were operated during the second quarter of 2011 compared with 47.7 in the year-ago quarter. Management announced that the company secured under time charter employment of 84% for the fiscal year ending December 31, 2011 and 54% for the next one year till June 2012.
During the first half of 2011, Excel Maritime generated $71.4 million of cash from operations compared with $88.2 million in the prior-year period. Free cash flow (cash flow from operations less capital expenditure) in the first half of 2011 was $52.9 million compared with $28.2 million in the year-ago quarter.
At the end of the second quarter of 2011, Excel Maritime had $59.7 million of cash & cash equivalents compared with $65.9 million at the end of fiscal 2010. Total debt at the end of the reported quarter was $1,100 million compared with $1,154 million at the end of fiscal 2010. At the end of the second quarter of 2011, debt-to-capitalization ratio was 0.36 compared with 0.37 at the end of fiscal 2010.
Excel Maritime operates under highly competitive drybulk shipping industry. Its main competitors are Diana Shipping Inc. (NYSE:DSX - News), Genco Shipping & Trading Ltd. (NYSE:GNK - News), and DryShips Inc. (NasdaqGS:DRYS - News).
We maintain our long-term Underperform recommendation on Excel Maritime. This was primarily attributable to the stiff reduction of drybulk spot freight rate in the recent past. However, currently the company holds a short-term Zacks #3 Rank (Hold) on the stock.
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