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Corporate Developments On July 1 2010, we made a $46 million payment under our $1.4 billion credit facility in accordance with the original credit facility dated April 14, 2008. We were also in compliance with the relevant financial covenants as applicable after the end of the waiver period. As a result, the excess cash flow provision was terminated and the loan applicable margin for the interest period starting July 1, 2010 and ending October 1, 2010 decreased from 2.5% to 1.25%. On September 30, 2010, we continued to be in compliance with the relevant financial covenants as applicable after the end of the waiver period and the applicable margin for the interest period starting October 1, 2010 and ending December 31, 2010 will continue to be at 1.25%. Fleet Developments • On October 27, 2010, the M/V Coal Gypsy (a Kamsarmax vessel of 82,221 dwt built in 2006), M/V Pascha (a Kamsarmax vessel of 82,574 dwt built in 2006) and M/V Grain Express (a Panamax vessel of 76,466 dwt built in 2004) were fixed under separate time charters for a period of 11-13 months at a daily gross rate of $24,000 each. The vessels will be delivered to their new charters upon completion of their current charters. • On September 6, 2010, the M/V Fearless I, a Panamax vessel of 73,427 dwt built in 1997, was fixed under a new time charter for a period of 12-14 months at a daily gross rate of $24,650. • On August 23, 2010, the M/V Powerful, a Panamax vessel of 70,083 dwt built in 1994, was fixed under a new time charter for a period of 11-13 months at a daily gross rate of $25,000. • On July 9, 2010, the M/V Angela Star, a Panamax vessel of 73,798 dwt built in 1998, was involved in a collision while departing in ballast condition from a Panamanian port. Damage was sustained on her hull structure and as a result temporary repairs were carried out locally. The vessel later sailed to a yard in Bahamas for permanent repairs which were completed on September 22, 2010 at a total cost of approximately $2.4 million that was covered, subject to a small deductible, under the vessel’s hull and machinery insurance policy. At the time of the incident the vessel was fixed under a trip time charter at $23,000 per day for 50-55 days, which was resumed after the repairs’ completion. Time Charter Coverage As of today, we have secured under time charter employment 68% of our operating days for the fourth quarter of 2010 and 27% for the year ending December 31, 2011. Third Quarter 2010 Results: Excel reported net profit for the quarter of $48.0 million or $0.57 per weighted average diluted share compared to a net profit of $62.0 million or $0.79 per weighted average diluted share in the third quarter of 2009. The third quarter 2010 results include a non-cash unrealized interest-rate swap loss of $4.1 million compared to a non-cash unrealized interest-rate swap loss of $1.8 million in the corresponding period in 2009. The changes in the fair values of interest rate swaps that do not meet the criteria for hedge accounting are recorded in income. 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 $42.5 million ($0.51 per weighted average diluted share) and $66.4 million ($0.84 per weighted average diluted share) for the third quarter of 2010 and 2009, respectively. Adjusted net income, excluding all the above items, for the third quarter of 2010 would have amounted to $9.5 million or $0.11 per weighted average diluted share compared to an adjusted net loss, excluding all the above items, for the third quarter of 2009 of $2.6 million or $0.03 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 $5.5 million ($0.07 per weighted average diluted share) and $8.9 million ($0.11 per weighted average diluted share), for the quarter ended September 30, 2010 and 2009, respectively. Voyage revenues for the third quarter of 2010 amounted to $104.7 million as compared to $97.9 million for the same period in 2009, an increase of approximately 6.9%. An average of 48.0 and 47.0 vessels were operated during the third quarter of 2010 and 2009, respectively, earning a blended average time charter equivalent rate of $22,848 and $21,912 per day, respectively. Please refer to a subsequent section of this press release for a calculation of the TCE. Adjusted EBITDA for the third quarter of 2010 was $62.3 million compared to $59.1 million for the third quarter of 2009, an increase of approximately 5.4%. Please refer to a subsequent section of this press release for a reconciliation of adjusted EBITDA to Net Income. Nine Months to September 30, 2010 Results: Excel reported net profit for the period of $194.2 million or $2.36 per weighted average diluted share compared to a net profit of $258.0 million or $3.91 per weighted average diluted share in the respective period of 2009. The results for the nine month period ended September 30, 2010 include a non-cash unrealized interest-rate swap loss of $8.8 million compared to a non-cash unrealized interest-rate swap gain of $19.2 million in the corresponding period in 2009. The changes in the fair values of interest rate swaps that do not meet the criteria for hedge accounting are recorded in income. In addition, the results for the nine month period ended September 30, 2009 include $0.1 million of a non-cash gain on sale of a vessel. 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 $181.5 million ($2.20 per weighted average diluted share) and $251.0 million ($3.80 per weighted average diluted share) for the nine month period ended September 30, 2010 and 2009, respectively. Adjusted net income, excluding all the above items, for the nine months to September 30, 2010 would have amounted to $21.6 million or $0.26 per weighted average diluted share compared to an adjusted net loss, excluding all the above items, for the respective period of 2009 of $12.2 million or $0.18 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 $7.4 million ($0.09 per weighted average diluted share) and $14.3 million ($0.22 per weighted average diluted share), for the nine months to September 30, 2010 and 2009, respectively. Voyage revenues for the nine month period ended September 30, 2010 amounted to $316.0 million as compared to $289.1 million for the same period in 2009, an increase of approximately 9.3%. An average of 47.6 and 47.3 vessels were operated during the nine months to September 30, 2010 and 2009, respectively, earning a blended average time charter equivalent rate of $23,768 and $21,676 per day, respectively. Please refer to a subsequent section of this press release for a calculation of the TCE. Adjusted EBITDA for the period was $184.3 million compared to $169.7 million for the respective period of 2009, an increase of approximately 8.6%. Please refer to a subsequent section of this press release for a reconciliation of adjusted EBITDA to Net Income. 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 (six Capesize, 14 Kamsarmax, 21 Panamax, two Supramax and five Handymax vessels) with a total carrying capacity of over 4.0 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. Excel Maritime press release |
ATHENS, GREECE – November 2, 2010 – 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 third quarter and nine
month period ended September 30, 2010.
