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Third Quarter Highlights & Recent Developments: • Operating profitable for the quarter with Adjusted EBITDA at $36.2 million and Operating Free Cash Flow at $24.0 million; • Further increase in charter coverage to 49% of available vessel days for the next 12 months to September 2012; • Sale of our oldest vessel, 1985 Handymax MV Lady, on profitable terms. A reconciliation of non-GAAP measures discussed herein is included in a later section of this release. Management Commentary: Pavlos Kanellopoulos, Chief Financial Officer of Excel, stated, “Excel recorded results with positive operating free cash flow generation. Results were negatively impacted by weaker market environment during the third quarter of 2011, as daily charter rates and vessel values were adversely affected by the deliveries of newbuilds which peaked earlier this year. Since June, Excel has proactively negotiated and agreed with its lenders a relaxation of its financial covenants, and during this quarter Excel increased both its twelve-month forward charter coverage to approximately 50% and its liquidity buffer to $134 million. Despite the near-term challenges, we remain positive on the longer-term outlook for the emerging markets that we predominantly serve. We believe that the size and quality of our fleet, our track record of superior operational performance, and the continuous strengthening of our balance sheet positions us well for when rates eventually rebound.’’ Selected Financial Data 
A reconciliation of the non-GAAP measures discussed above is included in a later section of this release. Third Quarter 2011 Results Excel reported voyage revenues of $82.3 million for the third quarter of 2011 compared to $104.7 million for the same period in 2010, a decrease of approximately 21.4%. Adjusted EBITDA for the third quarter of 2011 was $36.2 million compared to $62.3 million for the third quarter of 2010, a decrease of approximately 41.9%. Net loss for the quarter amounted to $26.8 million or $0.32 per weighted average diluted share compared to a net profit of $48.0 million or $0.57 per weighted average diluted share in the third quarter of 2010. The third quarter 2011 results include a non-cash unrealized loss on derivative financial instruments of $1.6 million compared to a non-cash unrealized loss on derivative financial instruments of $4.1 million in the corresponding period in 2010. In addition, the results for the three-month period ended September 30, 2011 include a non-cash gain of $5.1 million realized in connection with the sale of the M/V Lady. The above net results include 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 loss of $9.2 million and a net gain of $42.5 million for the third quarter of 2011 and 2010, respectively. There was an adjusted net loss, excluding all the above items, of $21.2 million or $0.25 per weighted average diluted share for the third quarter of 2011 compared to an adjusted net income, excluding all the above items, of $9.5 million or $0.11 per weighted average diluted share for the same quarter of 2010. The above adjusted net results also include the amortization of stock based compensation expense of $4.6 million and $5.5 million, for the quarter ended September 30, 2011 and 2010, respectively. An average of 47.4 and 48 vessels were operated during the third quarter of 2011 and 2010, respectively, earning a blended average time charter equivalent rate of $16,864 and $22,848 per day, respectively. A reconciliation of adjusted EBITDA to net income, adjusted net income to net income and Adjusted Earnings (losses) per Share (Diluted) to Earnings (losses) per Share (Diluted) as well as a calculation of the TCE is provided in a later section of this press release. Nine Months Ended September 30, 2011 Results Excel reported voyage revenues of $271.5 million for the nine months ended September 30, 2011 compared to $316.0 million for the same period in 2010, a decrease of approximately 14.1%. Adjusted EBITDA for the period was $128.3 million compared to $184.3 million for the respective period of 2010, a decrease of approximately 30.4%. There was a net loss of $43.8 million or $0.52 per weighted average diluted share in the nine months ended September 30, 2011 compared to a net profit of $194.2 million or $2.36 per weighted average diluted share in the nine months ended September 30, 2010. The results for the nine month period ended September 30, 2011 include a non-cash unrealized gain on derivative financial instruments of $3.4 million compared to a non-cash unrealized loss on derivative financial instruments of $8.8 million in the corresponding period in 2010. In addition, the results for the nine month period ended September 30, 2011 include a non-cash gain of $6.4 million realized in connection with the sale of the M/V Marybelle and the M/V Lady. The above net results include 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 loss of $27.3 million and a net gain of $181.5 million for the nine month periods ended September 30, 2011 and 2010, respectively. There was an adjusted net loss, excluding all the above items, of $26.3 million or $0.31 per weighted average diluted share for the nine-month period ended September 30, 2011 compared to an adjusted net income, excluding all the above items, of $21.6 million or $0.26 per weighted average diluted share for the nine-month period ended September 30, 2010. The above adjusted net results also include the amortization of stock based compensation expense of $7.9 million and $7.4 million, for the nine months ended September 30, 2011 and 2010, respectively. An average of 47.9 and 47.6 vessels were operated during the nine months ended September 30, 2011 and 2010, respectively, earning a blended average time charter equivalent rate of $18,480 and $23,768 per day, respectively. A reconciliation of adjusted EBITDA to net income, adjusted net income to net income and Adjusted Earnings (losses) per Share (Diluted) to Earnings (losses) per Share (Diluted) as well as a calculation of the TCE is provided in a later section of this press release. Fleet developments On August 9, 2011, the M/V Lady (41,090 dwt, built in 1985) was delivered to her new owners and we recognized a non-cash gain of approximately $5.1 million as of the same date. 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 71.4%, 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. Excel Maritime Carriers Ltd. press release |
Excel Maritime Reports Results for the Third Quarter