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

Marketwired

ATHENS, GREECE--(Marketwire -08/28/12)- Excel Maritime Carriers Ltd (EXM) ("Excel"), an owner and operator of dry bulk carriers and an international provider of worldwide seaborne transportation services for dry bulk cargoes, announced today its operating and financial results for the second quarter and six month period ended June 30, 2012.

Financial highlights

 

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

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

Corporate highlights and Recent developments

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

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

Fleet Coverage

 

----------------------------------------------------------------------------
Fleet Coverage, as of August 24, 2012 Full Year '12
----------------------------------------------------------------------------
Capesize Fleet 100%
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Kamsarmax / Panamax Fleet 82%
----------------------------------------------------------------------------
Entire Fleet - Fixed Charters 83%
----------------------------------------------------------------------------
% of Fixed Charters with upside participation 21%
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As of August 24, 2012, we have secured contract coverage for 100% of the available days of our Capesize vessels and 82% of the available days of our Kamsarmax/Panamax vessels for the current year ending December 31, 2012. With respect to the entire fleet, 83% of the available days of 2012 have been fixed, 21% of which are under contracts which offer an upside potential through profit sharing arrangements or index-linked structures and hedge against downside price risk through floor protection.

Vessel Fixtures

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

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

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

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

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

Management Commentary:

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

Second Quarter 2012 Results:

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

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

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

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

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

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

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

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

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

Six Months Ended June 30, 2012 Results:

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

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

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

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

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

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

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

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

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

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

Conference Call Details:

Tomorrow August 29, 2012 at 08:30 A.M. EDT, the Company's management will host a conference call to discuss these results.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 866 819 7111 (US Toll Free Dial In), 0800 953 0329 (UK Toll Free Dial In) or +44 (0)1452 542 301 (Standard International Dial In). Please quote "Excel Maritime" to the operator.

A telephonic replay of the conference call will be available until September 5, 2012 by dialing 1 866 247 4222 (US Toll Free Dial In), 0800 953 1533 (UK Toll Free Dial In) or +44 (0)1452 550 000 (Standard International Dial In). Access Code: 1838801#

Slides and Audio Webcast:

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

 

EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS
FOR THE QUARTER ENDED JUNE 30, 2011 AND 2012
(In thousands of U.S. Dollars, except for share and per share data)

Second Quarter
2011 2012
----------- -----------
REVENUES:
Voyage revenues $ 91,962 $ 63,143
Time Charter fair value amortization 845 961
----------- -----------
Total Revenues 92,807 64,104
----------- -----------


EXPENSES:
Voyage expenses 8,437 8,817
Charter hire expense 8,185 8,186
Charter hire amortization 9,959 -
Commissions to related parties 1,019 706
Vessel operating expenses 21,846 20,622
Depreciation expense 31,952 31,824
Dry-docking and special survey cost 3,131 3,717
General and administrative expenses 10,644 8,610
----------- -----------
95,173 82,482
----------- -----------

Loss from operations (2,366) (18,378)
----------- -----------

OTHER INCOME (EXPENSES):
Interest and finance costs (7,832) (13,477)
Interest income 403 42
Losses on derivative financial instruments (6,109) (2,062)
Foreign exchange gains (losses) (185) 158
Other, net 631 692
----------- -----------
Total other expenses, net (13,092) (14,647)
----------- -----------

Net loss before taxes and income earned by non
controlling interest (15,458) (33,025)
----------- -----------

US Source Income taxes (252) (124)
----------- -----------

Net loss (15,710) (33,149)
----------- -----------

Income earned by non-controlling interest (287) (277)
----------- -----------

Net loss attributable to Excel Maritime Carriers
Ltd.     $ (15,997) $ (33,426)
=========== ===========

Losses per common share, basic $ (0.19) $ (0.37)
=========== ===========
Weighted average number of shares, basic 83,819,299 89,469,267
=========== ===========
Losses per common share, diluted $ (0.19) $ (0.37)
=========== ===========
Weighted average number of shares, diluted 83,819,299 89,469,267
=========== ===========



EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS
FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2011 AND 2012
(In thousands of U.S. Dollars, except for share and per share data)

Six-month period ended
June 30,
2011 2012
----------- -----------
REVENUES:
Voyage revenues $ 189,240 $ 127,219
Time Charter fair value amortization 1,681 1,924
Revenue from managing related party vessels 17 -
----------- -----------
Total Revenues 190,938 129,143
----------- -----------


EXPENSES:
Voyage expenses 21,557 16,196
Charter hire expense 16,281 16,371
Charter hire amortization 19,808 -
Commissions to related parties 2,092 1,423
Vessel operating expenses 42,875 40,150
Depreciation expense 63,666 63,695
Dry-docking and special survey cost 4,277 12,333
General and administrative expenses 17,063 14,707
----------- -----------
187,619 164,875
----------- -----------

Gain on sale of vessel 1,274 -

Income (loss) from operations 4,593 (35,732)
----------- -----------

OTHER INCOME (EXPENSES):
Interest and finance costs (15,600) (30,598)
Interest income 824 208
Losses on derivative financial instruments (5,651) (3,563)
Foreign exchange gains (losses) (344) 166
Other, net 221 448
----------- -----------
Total other expenses, net (20,550) (33,339)
----------- -----------

Net loss before taxes and income earned by non
controlling interest (15,957) (69,071)
----------- -----------

US Source Income taxes (504) (313)
----------- -----------

Net loss (16,461) (69,384)
----------- -----------

Income earned by non-controlling interest (560) (629)
----------- -----------

Net loss attributable to Excel Maritime Carriers
Ltd.     $ (17,021) $ (70,013)
=========== ===========

Losses per common share, basic $ (0.20) $ (0.79)
=========== ===========
Weighted average number of shares, basic 83,730,845 88,723,937
=========== ===========
Losses per common share, diluted $ (0.20) $ (0.79)
=========== ===========
Weighted average number of shares, diluted 83,730,845 88,723,937
=========== ===========



EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2011 AND JUNE 30, 2012 (UNAUDITED)
(In thousands of U.S. Dollars)

December 31, June 30,
ASSETS 2011 2012
------------- -------------

CURRENT ASSETS:
Cash and cash equivalents $ 53,749 $ 27,235
Restricted cash 5,700 6,623
Accounts receivable 7,004 4,223
Other current assets 16,392 16,275
------------- -------------
Total current assets 82,845 54,356
------------- -------------

FIXED ASSETS:
Vessels, net 2,579,285 2,515,874
Office furniture and equipment, net 941 718
------------- -------------
Total fixed assets, net 2,580,226 2,516,592
------------- -------------

OTHER NON CURRENT ASSETS:
Other deferred non-current asset 1,108 1,257
Restricted cash 57,750 58,250
------------- -------------

Total assets $ 2,721,929 $ 2,630,455
============= =============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Current portion of long-term debt, net of
deferred financing fees $ 104,879 $ 56,510
Accounts payable 12,062 12,025
Other current liabilities 31,106 33,908
Derivative financial instruments 19,453 19,797
------------- -------------
Total current liabilities 167,500 122,240
------------- -------------

Long-term debt, net of current portion and net
of deferred financing fees 952,716 974,848
Time charters acquired, net 14,633 12,858
Derivative financial instruments 26,516 19,709
------------- -------------

Total liabilities 1,161,365 1,129,655
------------- -------------

Commitments and contingencies - -
------------- -------------

STOCKHOLDERS' EQUITY:
Preferred stock - -
Common stock 891 930
Additional paid-in capital 1,071,263 1,080,797
Other Comprehensive loss (3,064) (3,206)
Retained earnings 480,081 410,068
Less: Treasury stock (189) -
------------- -------------
Excel Maritime Carriers Ltd. Stockholders'
equity 1,548,982 1,488,589
------------- -------------
Non-controlling interests 11,582 12,211
------------- -------------
Total Stockholders' Equity 1,560,564 1,500,800
------------- -------------
Total liabilities and stockholders'
equity $ 2,721,929 $ 2,630,455
============= =============



EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2011 AND 2012
(In thousands of U.S. Dollars)

Six-month period ended
June 30,
2011 2012
----------- -----------
Cash Flows from Operating Activities:
Net loss $ (16,461) $ (69,384)
Adjustments to reconcile net loss to net cash
provided by operating activities 84,129 69,325
Changes in operating assets and liabilities:
Operating assets 1,874 5,555
Operating liabilities 1,831 (1,299)
----------- -----------
Net Cash provided by Operating Activities $ 71,373 $ 4,197
----------- -----------

Cash Flows from Investing Activities:
Advances for vessels under construction (18,267) -
Additions to office furniture and equipment (186) (32)
Additions to vessels cost (54) (29)
Advance from vessel sale 1,500 -
Restricted cash-sale of vessel (1,500) -
Proceeds from sale of vessel 9,880 -
----------- -----------
Net cash used in Investing Activities $ (8,627) $ (61)
----------- -----------

Cash Flows from Financing Activities:
Increase in restricted cash (9,619) (1,423)
Proceeds from long-term debt 16,100 -
Repayment of long-term debt (75,409) (29,542)
Issuance of common stock, net of related
issuance costs - 3,075
Payment of financing costs (9) (2,760)
----------- -----------
Net cash used in Financing Activities $ (68,937) $ (30,650)
----------- -----------

Net decrease in cash and cash equivalents (6,191) (26,514)
Cash and cash equivalents at beginning of period 65,917 53,749
----------- -----------
Cash and cash equivalents at end of the period $ 59,726 $ 27,235
=========== ===========

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Interest payments under our credit facilities $ 10,422 $ 15,573
Interest payments under our interest rate swap
agreements 12,081 10,163
U.S. source income taxes 514 389


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

Three month period Six month period
ended June 30, ended June 30,
2011 2012 2011 2012
Net loss $ (15,997) $ (33,426) $ (17,021) $ (70,013)
Interest and finance costs, net
(1) 12,263 18,489 25,406 40,406
Depreciation 31,952 31,824 63,666 63,695
Dry-dock and special survey cost 3,131 3,717 4,277 12,333
Unrealized derivative financial
instruments (gain) loss 1,275 (2,992) (4,979) (6,453)
Amortization of T/C fair values
(2) 9,114 (961) 18,127 (1,924)
Stock based compensation 2,017 962 3,330 1,584
Gain on sale of vessel - - (1,274) -
Taxes 252 124 504 313
--------- --------- --------- ---------
Adjusted EBITDA $ 44,007 $ 17,737 $ 92,036 $ 39,941
========= ========= ========= =========

(1) Includes back stop agreement non cash loss and derivative financial
instruments paid and received
(2) Analysis:
Three month period Six month period
ended June 30, ended June 30,
2011 2012 2011 2012
Non-cash amortization of
unfavorable time charters in
revenue $ (845) $ (961) $ (1,681) $ (1,924)
Non-cash amortization of
favorable time charters in
charter hire expense 9,959 - 19,808 -
--------- --------- --------- ---------
$ 9,114 $ (961) $ 18,127 $ (1,924)
========= ========= ========= =========


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

Three month period Six month period
ended June 30, ended June 30,
2011 2012 2011 2012
Net loss $ (15,997) $ (33,426) $ (17,021) $ (70,013)
Unrealized derivative financial
instruments (gain) loss 1,275 (2,992) (4,979) (6,453)
Back stop agreement valuation
loss - 989 - 6,358
Gain on sale of vessel - - (1,274) -
Amortization of T/C fair values 9,114 (961) 18,127 (1,924)
--------- --------- --------- ---------
Adjusted Net loss $ (5,608) $ (36,390) $ (5,147) $ (72,032)
========= ========= ========= =========


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

Three month period Six month period
ended June 30, ended June 30,
2011 2012 2011 2012
Losses per share $ (0.19) $ (0.37) $ (0.20) $ (0.79)
Unrealized derivative financial
instruments (gain) loss 0.01 (0.03) (0.06) (0.07)
Back stop agreement valuation
loss - 0.01 - 0.07
Gain on sale of vessel - - (0.02) -
Amortization of T/C fair values 0.11 (0.02) 0.22 (0.02)
--------- --------- --------- ---------
Adjusted Losses per share $ (0.07) $ (0.41) $ (0.06) $ (0.81)
========= ========= ========= =========

Disclosure of Non-GAAP Financial Measures

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

Adjusted Net Income/(loss) represents net income/(loss) attributable to us plus unrealized gains or losses from our derivative transactions, back stop agreement valuation losses, any gains or losses on sale of vessels and the elimination of the effect of deferred time charter assets and liabilities, all of which are significant non-cash items. Adjusted Earnings/(losses) per Share (basic and diluted) represents Adjusted Net Income/(loss) divided by the weighted average shares outstanding (basic and diluted).

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

About Excel Maritime Carriers Ltd

Excel is an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes, such as iron ore, coal and grains, as well as bauxite, fertilizers and steel products. Excel owns a fleet of 40 vessels, one of which, a Capesize vessel, is owned by a joint venture in which Excel holds a 71.4% interest, and, together with seven Panamax vessels under bareboat charters, operates 47 vessels (seven Capesize, 14 Kamsarmax, 21 Panamax, two Supramax and three Handymax vessels) with a total carrying capacity of approximately 4.1 million DWT.

Excel's Class A common shares have been listed since September 15, 2005 on the New York Stock Exchange (NYSE) under the symbol EXM and, prior to that date, were listed on the American Stock Exchange (AMEX) since 1998. For more information about Excel, please go to our corporate website www.excelmaritime.com.

Forward-Looking Statement

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and Excel's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters.

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

Although Excel believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Excel. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to the ability to changes in the demand for dry bulk vessels, competitive factors in the market in which Excel operates; risks associated with operations outside the United States; and other factors listed from time to time in Excel's filings with the Securities and Exchange Commission. Excel expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Excel's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

APPENDIX

The following key indicators highlight the Company's financial and operating performance for the three and six months ended June 30, 2012 compared to the corresponding periods in the prior year.

 

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

Glossary of Terms

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

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

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

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

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

 

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

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

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

 

Expected Amortization Schedule for Fair Valued Time Charters for Next Year

(in millions of U.S. Dollars) 3Q'12 4Q'12 1Q'13 2Q'13 Total

Amortization of unfavorable time charters
(1) $ 0.9 $ 0.9 $ 0.9 $ 0.9 $ 3.6

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

Fleet List as of August 24, 2012:

 

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

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

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

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

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

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

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

Contact:

Investor Relations / Financial Media:
Nicolas Bornozis
President
Capital Link, Inc.
230 Park Avenue - Suite 1536
New York, NY 10169, USA
Tel: (212) 661-7566
Fax: (212) 661-7526
E-Mail: excelmaritime@capitallink.com
www.capitallink.com
Company:
Pavlos Kanellopoulos
Chief Financial Officer
Excel Maritime Carriers Ltd.
17th Km National Road Athens-Lamia & Finikos Street
145 64 Nea Kifisia
Athens, Greece
Tel: +30-210-62-09-520
Fax: +30-210-62-09-528
E-Mail: ir@excelmaritime.com
www.excelmaritime.com

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