The Company's management uses adjusted EBITDA as a performance measure. The Company believes that adjusted EBITDA is useful to investors, because the shipping industry is capital intensive and may involve significant financing costs. Adjusted EBITDA is not a measure recognized by GAAP and should not be considered as an alternative to net income, operating income or any other indicator of a Company's operating performance required by GAAP. The Company's definition of adjusted EBITDA may not be the same as that used by other companies in the shipping or other industries.
Adjusted Net Income represents net income plus unrealized gains or losses from our swap transactions and any gains or losses on sale of vessels, both of which are significant non-cash items. Adjusted Earnings per Share (diluted) represents Adjusted Net Income divided by weighted average shares outstanding (diluted).
These measures are "non-GAAP financial measures" and should not be considered substitutes for net income or earnings per share (diluted), respectively, as reported under GAAP. The Company has included an adjusted net income and adjusted earnings per share (diluted) calculation in this period in order to facilitate comparability between the Company's performance in the reported periods and its performance in prior periods.
About Excel Maritime Carriers Ltd
Excel is an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes, such as iron ore, coal and grains, as well as bauxite, fertilizers and steel products. Excel owns a fleet of 40 vessels and, together with 7 Panamax vessels under bareboat charters, operates 47 vessels (5 Capesize, 14 Kamsarmax, 21 Panamax, 2 Supramax and 5 Handymax vessels) with a total carrying capacity of approximately 3.9 million DWT. Excel Class A common shares have been listed since September 15, 2005 on the New York Stock Exchange (NYSE) under the symbol EXM and, prior to that date, were listed on the American Stock Exchange (AMEX) since 1998. For more information about the Company, please go to our corporate website www.excelmaritime.com.
Forward-Looking Statement
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct.
These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to the ability to changes in the demand for dry bulk vessels; competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
APPENDIX
The following key indicators highlight the Company's financial and operating performance for the three and nine months ended September 30, 2009 compared to the corresponding periods in the prior year. In the table below, the Panamax fleet includes both Kamsarmax and Panamax vessels and the Handymax fleet includes both Supramax and Handymax vessels:
Vessel Employment
(In U.S. Dollars per day, unless otherwise stated)
CAPESIZE FLEET PANAMAX FLEET
Three-month period ended September
30,
2008 2009 2008 2009
------- ------- ------- -------
Total calendar days 368 460 3,220 3,220
Available days under period charter 368 460 2,787 2,248
Available days under spot/short
duration charter - - 366 884
Utilization 100.0% 100.0% 97.9% 97.3%
Time charter equivalent per ship per
day-period 52,409 38,063 25,894 22,015
Time charter equivalent per ship per
day-spot - - 66,274 18,700
Time charter equivalent per ship per
day-weighted average 52,409 38,063 30,581 21,079
Net daily revenue per ship per day 52,409 38,063 29,954 20,509
Vessel operating expenses per ship per
day (5,033) (5,041) (4,499) (4,701)
Net Operating cash flows per ship per
day before G&A expenses 47,376 33,022 25,455 15,808
------- ------- ------- -------
HANDYSIZE FLEET TOTAL FLEET
Three-month period ended September
30,
2008 2009 2008 2009
------- ------- ------- -------
Total calendar days 736 644 4,324 4,324
Available days under period charter 92 92 3,247 2,800
Available days under spot/short
duration charter 569 552 935 1,436
Utilization 89.8% 100.0% 96.7% 98.0%
Time charter equivalent per ship per
day-period 28,200 10,429 28,964 24,270
Time charter equivalent per ship per
day-spot 40,523 15,072 50,612 17,305
Time charter equivalent per ship per
day-weighted average 38,808 14,408 33,806 21,912
Net daily revenue per ship per day 34,834 14,408 32,696 21,467
Vessel operating expenses per ship per
day (4,378) (4,991) (4,528) (4,780)
Net Operating cash flows per ship per
day before G&A expenses 30,456 9,417 28,168 16,687
------- ------- ------- -------
Vessel Employment
(In U.S. Dollars per day, unless otherwise stated)
CAPESIZE FLEET PANAMAX FLEET
Nine-month period ended September
30,
2008 2009 2008 2009
------- ------- ------- -------
Total calendar days 672 1,365 6,940 9,555
Available days under period charter 642 1,343 5,973 6,875
Available days under spot/short
duration charter 30 - 798 2,495
Utilization 100.0% 98.4% 97.6% 98%
Time charter equivalent per ship per
day-period 50,188 41,142 26,651 23,407
Time charter equivalent per ship per
day-spot 118,107 - 64,266 14,009
Time charter equivalent per ship per
day-weighted average 53,220 41,142 31,084 20,905
Net daily revenue per ship per day 53,197 40,491 30,325 20,500
Vessel operating expenses per ship per
day (4,785) (5,297) (4,869) (4,774)
Net Operating cash flows per ship per
day before G&A expenses 48,412 35,194 25,456 15,726
------- ------- ------- -------
HANDYSIZE FLEET TOTAL FLEET
Nine-month period ended September
30,
2008 2009 2008 2009
------- ------- ------- -------
Total calendar days 2,192 1,985 9,804 12,905
Available days under period charter 516 368 7,131 8,586
Available days under spot/short
duration charter 1,519 1,521 2,347 4,016
Utilization 92.8% 95.2% 96.7% 97.7%
Time charter equivalent per ship per
day-period 35,303 15,032 29,397 25,823
Time charter equivalent per ship per
day-spot 43,754 10,837 51,669 12,807
Time charter equivalent per ship per
day-weighted average 41,611 11,655 34,913 21,676
Net daily revenue per ship per day 38,640 11,089 33,752 21,167
Vessel operating expenses per ship per
day (4,871) (5,055) (4,866) (4,873)
Net Operating cash flows per ship per
day before G&A expenses 33,769 6,034 28,886 16,294
------- ------- ------- -------
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 and the aggregate amount of time spent positioning vessels and any unforeseen off-hire. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenue.
Available days under spot / short duration charter: This is defined as available days under spot charters and / or time charters of duration of less than six months.
Fleet utilization: This is the percentage of time that our vessels were available for revenue generating days, and is determined by dividing available days by calendar days for the relevant period.
Time charter equivalent per ship per day ("TCE"): This is a measure of the average daily revenue performance of a vessel on a per voyage basis. Our method of calculating TCE is consistent with industry standards and is determined by dividing revenue generated from voyage charters net of voyage expenses 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)
For the For the
three-month nine-month
period ended period ended
September 30, September 30,
---------------- ----------------
2008 2009 2008 2009
------- ------- ------- -------
Voyage revenues 149,567 97,867 351,058 289,112
Voyage expenses (8,190) (5,046) (20,156) (15,948)
------- ------- ------- -------
Time Charter Equivalent 141,377 92,821 330,902 273,164
======= ======= ======= =======
Total available days 4,182 4,236 9,478 12,602
Daily Time charter equivalent 33,806 21,912 34,913 21,676
Net daily revenue: We define this as the daily TCE rate including idle time.
Daily vessel operating expenses: This includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs and is calculated by dividing vessel operating expenses by total 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) 4Q'09 1Q'10 2Q'10 3Q'10 Total
Amortization of unfavorable time
charters (1) 72.3 70.7 69.6 58.5 271.1
Amortization of favorable time
charters (2) 10.1 9.9 10.0 10.1 40.1
(1) Adjustment to Revenue from operations i.e. increases revenues
(2) Adjustment to Charter hire expenses i.e. increases charter hire expense
Fleet List as of November 2, 2009:
Year Charter Average
Vessel Name Dwt Built Type Daily rate Expiration Date
Iron Miner 177,931 2007 Period $ 42,105 February 2012
$ 49,000
Kirmar 164,218 2001 Period (net) May 2013
Iron Beauty 164,218 2001 Period $ 36,500 October 2010
Lowlands
Beilun 170,162 1999 Period $ 36,000 May 2010
Sandra 180,274 2008 Period $ 32,000 September 2010 (1)
Total
Capesize 856,803
Iron Manolis 82,269 2007 Period $ 22,000 December 2010
Iron Brooke 82,594 2007 Period $ 21,000 December 2010
Iron Lindrew 82,598 2007 Period $ 21,000 December 2010
Coal Hunter 82,298 2006 Period $ 22,000 December 2010
Pascha 82,574 2006 Period $ 21,000 December 2010
Coal Gypsy 82,221 2006 Period $ 22,000 December 2010
Iron Anne 82,220 2006 Period $ 22,000 December 2010
Iron
Vassilis 82,257 2006 Period $ 22,000 December 2010
Iron Bill 82,187 2006 Period $ 22,000 December 2010
Santa
Barbara 82,266 2006 Period $ 22,000 December 2010
Ore Hansa 82,209 2006 Period $ 22,000 December 2010
Iron Kalypso 82,224 2006 Period $ 22,000 December 2010
Iron Fuzeyya 82,209 2006 Period $ 22,000 December 2010
Iron Bradyn 82,769 2005 Period $ 22,000 December 2010
Total
Kamsarmax 1,152,895
Grain
Harvester 76,417 2004 Period $ 20,000 December 2010
Grain
Express 76,466 2004 Period $ 22,000 December 2010
Iron Knight 76,429 2004 Period $ 22,000 December 2010
Coal Pride 72,493 1999 Spot
Isminaki 74,577 1998 Period $ 24,000 March 2010
Angela Star 73,798 1998 Spot
Elinakos 73,751 1997 Spot
Happy Day 71,694 1997 Spot
Iron Man (A) 72,861 1997 Period $ 18,500 May 2010
Coal Age (A) 72,824 1997 Period $ 21,250 October 2010
Fearless I
(A) 73,427 1997 Period $ 22,250 March 2010
Barbara (A) 73,307 1997 Period $ 23,000 July 2010
Linda Leah
(A) 73,317 1997 Spot
King Coal
(A) 72,873 1997 Period $ 56,000 July 2011
Coal Glory
(A) 73,670 1995 Period BPI AV 4TC (2) December 2009
Powerful 70,083 1994 Period $ 20,500 December 2009
First
Endeavour 69,111 1994 Spot
Rodon 73,656 1993 Spot
Birthday 71,504 1993 Period $ 16,500 July 2010
Renuar 70,155 1993 Spot
Fortezza 69,634 1993 Spot
Total
Panamax 1,532,047
July M 55,567 2005 Spot
Mairouli 53,206 2005 Period $ 11,000 February 2010
Total
Supramax 108,773
Emerald 45,588 1998 Spot
Princess I 38,858 1994 Spot
Marybelle 42,552 1987 Spot
Attractive 41,524 1985 Spot
Lady 41,090 1985 Spot
Total
Handymax 209,612
Total Fleet 3,860,130
Average age 9.4 Yrs
---------- -------- -------- ------------- -----------------
Estimated
Fleet to be delivered Type Dwt delivery (B)
------------- ------------- -------------
Christine (D) Capesize 180,000 May 2010
Hope (E) Capesize 181,000 November 2010
Total fleet to be delivered 361,000
------------- ------------- -------------
Estimated
delivery
Fleet to be delivered (C) Type Dwt (B)
----------- ----------- -----------
Fritz (F) Capesize 180,000 May 2010
Benthe (F) Capesize 180,000 June 2010
Gayle Frances (F) Capesize 180,000 July 2010
Iron Lena (F) Capesize 180,000 August 2010
----------- ----------- -----------
(1) 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.
(2) The BPI AV4 Time Charter Rate is the Baltic Panamax Index Average of four specific time charter routes as published daily by the Baltic Exchange in London.
(A) These vessels were sold in 2007 and leased back on a bareboat charter through July 2015.
(B) The delivery dates shown in this column are estimates based on the delivery dates set forth in the relevant shipbuilding contracts or resale agreements.
(C) No refund guarantee has been received for these newbuildings and Excel does not believe that the respective new building contracts will materialize. There can be no assurance that the vessels will be delivered timely or at all.
(D) Excel holds 71.4% interest in the joint venture that will own the vessel.
(E) Excel holds 100% interest in the company that will own the vessel.
(F) Excel holds a 50% interest in the joint ventures that will own these vessels.
For further details on the fleet and their employment please refer to our website at www.excelmaritime.com
Contacts:
Investor Relations / Financial Media:
Nicolas Bornozis
President
Capital Link, Inc.
230 Park Avenue - Suite 1536
New York, NY 10160, USA
Tel: (212) 661-7566
Fax: (212) 661-7526
E-Mail: excelmaritime@capitallink.com
www.capitallink.com
Company:
Lefteris Papatrifon
Chief Financial Officer
Excel Maritime Carriers Ltd.
17th Km National Road Athens-Lamia & Finikos Street
145 64 Nea Kifisia
Athens, Greece
Tel: 011-30-210-62-09-520
Fax: 011-30-210-62-09-528
E-Mail: ir@excelmaritime.com
www.excelmaritime.com
