ATHENS, GREECE -- (Marketwire) -- 08/05/09 -- Excel Maritime Carriers Ltd (NYSE: EXM), an
owner and operator of dry bulk carriers and a leading international
provider of worldwide seaborne transportation services for dry bulk
cargoes, announced today its operating and financial results for the second
quarter and six-month period ended June 30, 2009.
Second Quarter 2009 Highlights:
-- Revenue from operations for the quarter amounted to $173.9 million as
compared to $205.5 million in the second quarter of 2008.
-- Net income for the quarter was $78.0 million or $1.05 per weighted
average diluted share compared to $123.6 million or $3.06 per weighted
average diluted share in the second quarter of 2008. The results for the
second quarters of 2009 and 2008 include non-cash items of $14.3 million
and $22.8 million, respectively relating to the unrealized gain from the
valuation of interest rate swaps. Net income, excluding the above items,
for the second quarter of 2009 would amount to $63.7 million or $0.86 per
weighted average diluted share compared to respective income for the second
quarter of 2008 of $100.8 million or $2.50 per weighted average diluted
share.
-- Adjusted EBITDA for the second quarter of 2009 was $57.3 million
compared to $91.0 million for the second quarter of 2008. A reconciliation
of adjusted EBITDA to Net Income is included in a subsequent section of
this release.
-- An average of 47 vessels were operated during the second quarter of
2009 earning a blended average time charter equivalent rate of $22,148 per
day compared to $33,325 per day for the second quarter of 2008 earned by an
average of 42.2 vessels.
Six Months 2009 Highlights:
-- Revenue from operations for the six-month period ended June 30, 2009
increased to $396.0 million from $275.3 million in the six-month period
ended June 30, 2008.
-- Net income for the six-month period ended June 30, 2009 was $196.0
million or $3.27 per weighted average diluted share compared to $158.6
million or $5.28 per weighted average diluted share in the respective
period of 2008. These results include non-cash items of $21.0 million in
both periods relating to the unrealized gain from the valuation of interest
rate swaps. Net income for 2009 includes also a non-cash item of $0.1
million relating to the resulting gain from the sale of vessel Swift. Net
income, excluding the above items, would amount to $174.9 million or $2.92
per weighted average diluted share for the six month period ended June 30,
2009 compared to $137.6 million or $4.58 per weighted average diluted share
for the respective period in 2008.
-- Adjusted EBITDA for the six month period ended June 30, 2009 was
$110.5 million compared to $143.0 million for the respective period of
2008. A reconciliation of adjusted EBITDA to Net Income is included in a
subsequent section of this release.
Year to Date Corporate Developments
During the six-month period ended June 30, 2009, the following corporate
developments took place, which are discussed in more detail in our earnings
release for the first quarter of 2009 released on May 22, 2009:
-- Nordea and Credit Suisse loan amendments and equity infusion;
-- Dividend suspension; and
-- Receipt of $5.2 million, representing Oceanaut's liquidation proceeds.
Fleet Developments:
Sale of vessel
Based on a Memorandum of Agreement dated February 20, 2009, the M/V Swift,
a Handymax vessel of 37,687 dwt built in 1984 was sold for net proceeds of
approximately $3.8 million. As of December 31, 2008, the vessel's value was
impaired and written down to her fair value, which approximated her sale
proceeds and thus, the 2009 results were not materially affected. The
vessel was delivered to her new owners on March 16, 2009. Following the
sale of the vessel, the Company repaid an amount of $4.6 million of its
loan with Nordea Bank.
Vessels new fixtures
On April 16, 2009 the M/V Sandra, a Capesize vessel of 180,274 dwt built in
2008, terminated her existing time charter. The Company received
approximately $2.0 million as compensation for the early termination and
entered into a new charter at a daily rate of $32,000 expiring in September
2010. A second charter on the vessel has been fixed commencing upon
completion of her current charter and through February 2016 at a daily base
rate of $25,000, with 50% profit sharing based on the monthly AV4 BCI
charter rate as published by the Baltic Exchange.
On June 8, 2009 the M/V Birthday, a Panamax vessel of 71,504 dwt built in
1993, began a new time charter for a period of 12-14 months at a daily rate
of $16,500.
On June 10, 2009 the M/V Barbara, a Panamax vessel of 73,307 dwt built in
1997, began a new time charter for a period of 12-14 months at a daily rate
of $23,000.
On June 22, 2009 the M/V Powerful, a Panamax vessel of 70,083 dwt built in
1994, began a new time charter for a period of 6-8 months at a daily rate
of $20,500.
Time Charter Coverage
As of today, we have secured under time charter employment 66% of our
operating days for the second half of 2009 and 53% for 2010.
Management Commentary:
Lefteris Papatrifon, Chief Financial Officer of Excel, stated, "We are very
pleased with our financial and operating performance for the second quarter
of 2009, given the prevailing market conditions. As we had anticipated
earlier in the year, global economic conditions, which directly affected
our sector, have started improving since the first quarter of this year.
Our strategy of enhancing the stability of our cash flows by gradually
fixing our vessels under charters at the proper time has continued to
benefit us. We have not only maintained but we even improved our operating
revenues and profitability, as depicted by the second quarter 2009 EBITDA
of $57.3 million as compared to the first quarter 2009 EBITDA of $53.3
million. The recent further improvement of the economic sentiment in the US
and China, as evidenced by various economic indicators and future market
expectations, allows us to be cautiously optimistic for the future. We
will continue implementing our strategy, which we expect will allow us to
continue managing current market volatility while at the same time being
able to take advantage of any opportunities presented to us."
Second Quarter 2009 Results:
The Company reported net income for the quarter of $78.0 million or $1.05
per weighted average diluted share as compared to net income of $123.6
million or $3.06 per weighted average diluted share for the second quarter
of 2008.
The results for the second quarters of 2009 and 2008 include non-cash items
of $14.3 million and $22.8 million, respectively relating to the unrealized
gain from the valuation of interest rate swaps. Net income, excluding the
above items, for the second quarter of 2009 would amount to $63.7 million
or $0.86 per weighted average diluted share compared to respective income
for the second quarter of 2008 of $100.8 million or $2.50 per weighted
average diluted share.
Included in the above adjusted net income are also the amortization of
favorable and unfavorable time charters that were fair valued upon
acquiring Quintana Maritime Limited ("Quintana") on April 15, 2008
amounting to a net income of $65.3 million ($0.88 per weighted average
diluted share) and $65.0 million ($1.61 per weighted average diluted share)
for the second quarters of 2009 and 2008, respectively and the amortization
of stock based compensation expense of $3.0 million and $2.6 million,
respectively.
In addition, effective January 1, 2009, we changed the method of accounting
for dry-docking and special survey costs from the deferral method to the
expense as incurred method, as well as, adopted FASB Staff Position APB
14-1 "Accounting for Convertible Debt Instruments That May Be Settled in
Cash upon Conversion" that changed the method of accounting for our
Convertible Notes. (Please refer to a subsequent section of this Press
Release for a further discussion on these accounting changes). Such changes
were effected retrospectively to all periods presented and their effect in
the three months to June 30, 2009 was a decrease in net income of
approximately $1.3 million or $0.02 per weighted average diluted share in
relation to the change in dry-dock and special survey policy and $1.4
million or $0.02 per weighted average diluted share in relation to the
change in the accounting for the convertible notes.
Revenues for the second quarter of 2009 amounted to $173.9 million as
compared to $205.5 million for the same period in 2008, a decrease of
approximately 15.4%.
Included in revenues for the second quarters of 2009 and 2008 are $75.3
million and $73.3 million, respectively of non-cash revenues relating to
the amortization of unfavorable time charters that were fair valued upon
acquiring Quintana.
An average of 47 vessels were operated during the second quarter of 2009
earning a blended average time charter equivalent rate of $22,148 per day
compared to $33,325 per day for the second quarter of 2008 earned by an
average of 42.2 vessels. Please refer to a subsequent section of this
Press Release for a calculation of the TCE.
Adjusted EBITDA for the second quarter of 2009 was $57.3 million compared
to $91.0 million for the second quarter of 2008, a decrease of
approximately 37.0%. Please refer to a subsequent section of this Press
Release for a reconciliation of adjusted EBITDA to Net Income.
Six Months to June 30, 2009:
The Company reported net income for the period of $196.0 million or $3.27
per weighted average diluted share as compared to net income of $158.6
million or $5.28 per weighted average diluted share for the respective
period of 2008.
The results for the six-month periods ended June 30, 2009 and 2008 include
a non-cash item of $21.0 million in both periods relating to the unrealized
gain from the valuation of interest rate swaps. Net income for 2009
includes also a non-cash item of $0.1 million relating to the resulting
gain from the sale of vessel Swift. Net income, excluding the above items,
would amount to $174.9 million or $2.92 per weighted average diluted share
for the six month period ended June 30, 2009 compared to $137.6 million or
$4.58 per weighted average diluted share for the respective period in 2008.
Included in the above adjusted net income are also the amortization of
favorable and unfavorable time charters discussed above and amounting to a
net income of $184.6 million ($3.1 per weighted average diluted share) out
of which $51.5 million ($0.86 per weighted average diluted share) relate to
the accelerate amortization of the time charter value of M/V Sandra and M/V
Coal Pride assumed upon Quintana acquisition due to their termination and
$65.0 million ($2.2 per weighted average diluted share) for the six-month
periods ended June 30, 2009 and 2008, respectively and the amortization of
stock based compensation expense of $5.4 million and $2.7 million,
respectively.
The effect of the accounting changes discussed above in the
six-month period ended June 30, 2009 was a decrease in net income of
approximately $3.3 million or $0.06 per weighted average diluted share in
relation to the change in dry-dock and special survey policy and $2.8
million or $0.05 per weighted average diluted share in relation to the
change in the accounting for the convertible notes.
Revenues for the period amounted to $396.0 million as compared to $275.3
million for the same period in 2008, an increase of approximately 43.8%.
Included in revenues for the six-month periods ended June 30, 2009 and 2008
are $204.4 million and $73.3 million, respectively of non-cash revenues
relating to the amortization of unfavorable time charters that were fair
valued upon acquiring Quintana.
An average of 47.4 vessels were operated during the six-month period ended
June 30, 2009, earning a blended average time charter equivalent (TCE) rate
of $21,559 per day compared to $35,786 per day for the six-months period
ended June 30, 2008 earned by an average of 30.1 vessels. Please refer to
a subsequent section of this Press Release for a calculation of the TCE.
Adjusted EBITDA for the period was $110.5 million compared to $143.0
million for the respective period of 2008, a decrease of approximately
22.7%. Please refer to a subsequent section of this Press Release for a
reconciliation of adjusted EBITDA to Net Income.
Conference Call Details:
Today August 5, 2009 at 9:00 A.M. EDT, the company's management will host a
conference call to discuss the results.
Participants should dial into the call 10 minutes before the scheduled time
using the following numbers: 1 866 819 7111 (US Toll Free Dial In), 0800
953 0329 (UK Toll Free Dial In) or +44 (0)1452 542 301 (Standard
International Dial In). Please quote "Excel Maritime" to the operator.
A telephonic replay of the conference call will be available until August
12, 2009 by dialing 1 866 247 4222 (US Toll Free Dial In), 0800 953 1533
(UK Toll Free Dial In) or +44 (0)1452 550 000 (Standard International Dial
In). Access Code: 1838801#
Slides and Audio Webcast:
There will also be a live, and then archived, webcast of the conference
call, available through Excel Maritime Carriers' website
(www.excelmaritime.com). Participants for the live webcast should register
on the website approximately 10 minutes prior to the start of the webcast.
- Financial and Other Financial Data Follow -
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
FOR THE THREE- MONTH PERIODS ENDED JUNE 30, 2008 (as adjusted) AND 2009
(In thousands of U.S. Dollars, except for share and per share data)
Three-Month period
ended June 30,
2008
(as adjusted) 2009
---------- ----------
REVENUES:
Voyage revenues 131,967 98,439
Time Charter fair value amortization 73,298 75,309
Revenue from managing related party vessels 232 112
---------- ----------
Revenue from operations 205,497 173,860
---------- ----------
EXPENSES:
Voyage expenses 5,976 5,051
Charter hire expense 6,836 8,185
Charter hire amortization 8,315 9,970
Commissions to a related party 954 567
Vessel operating expenses 19,080 21,065
Depreciation expense 29,649 30,733
Dry-docking and special survey cost 3,695 3,826
General and administrative expenses 11,065 9,574
---------- ----------
85,570 88,971
---------- ----------
Income from operations 119,927 84,889
---------- ----------
OTHER INCOME (EXPENSES):
Interest and finance costs (17,746) (14,651)
Interest income 1,986 166
Interest rate swap gain 19,534 7,627
Foreign exchange loss (70) (125)
Other, net (61) 263
---------- ----------
Total other income (expenses), net 3,643 (6,720)
---------- ----------
Net income before taxes and income from investment
in affiliate 123,570 78,169
---------- ----------
US Source Income taxes (244) (177)
---------- ----------
Net income before income from investment in
affiliate 123,326 77,992
---------- ----------
Income from Investment in affiliate 175 -
---------- ----------
Net income 123,501 77,992
---------- ----------
Less: Loss assumed by the non controlling interests 51 46
---------- ----------
Net income attributable to Excel Maritime Carriers
Ltd. 123,552 78,038
========== ==========
Earnings per common share, basic $ 3.10 $ 1.10
========== ==========
Weighted average number of shares, basic 39,836,681 70,986,320
========== ==========
Earnings per common share, diluted $ 3.06 $ 1.05
========== ==========
Weighted average number of shares, diluted 40,376,857 74,199,723
========== ==========
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF INCOME
FOR THE SIX- MONTH PERIODS ENDED JUNE 30, 2008 (as adjusted) AND 2009
(In thousands of U.S.
