FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of March 2006
EXCEL MARITIME CARRIERS LTD.
(Translation of registrant's name into English)
67 Akti Miaouli
18537 Piraeus
Greece
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [_]
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [_] No [X]
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached hereto as Exhibit 1 is a press release dated March 13, 2006 by Excel Maritime Carriers Ltd. (the "Company") announcing Results for the Fourth Quarter and for the Full Year 2005.
ADDITIONAL INFORMATION
None.
Contact:
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: nbornozis@capitallink.com www.capitallink.com | Company: Christopher Georgakis Chief Executive 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: info@excelmaritime.com http://www.excelmaritime.com |
Excel Maritime Reports Results
for the Fourth Quarter and for the Full Year 2005
ATHENS, GREECE - March 13, 2006 -- Excel Maritime Carriers Ltd (NYSE: EXM), an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes, announced today its results for the fourth quarter 2005 and for the full year ended December 31st 2005.
Fourth Quarter 2005 Results:
Total revenues for the fourth quarter 2005 amounted to $35.7 million, an increase of approximately 122% when compared to the $16.1 million earned during the fourth quarter of 2004. Net income for the fourth quarter 2005 amounted to $13.6 million versus $9.6 million for the same period in 2004, an increase of approximately 42%. EBITDA for the fourth quarter 2005 was $ 23.9 million compared to $ 10.0 million during the fourth quarter 2004. Please see later in this Press Release for a reconciliation of EBITDA to Net Income.
An average of 17.7 vessels were operated during the fourth quarter 2005 earning a blended average time charter equivalent rate of $ 19,992 per day.
Earnings per share basic and diluted for the fourth quarter 2005, calculated on 19,929,264 shares, were $0.68 compared to $0.80 in the fourth quarter of 2004, a decrease of 15%. The average number of shares in the fourth quarter of 2004 was 11,962,296.
The results of the fourth quarter 2005 included a gain of $2.5 million or $0.12 per share from the sale of Almar I", a Capesize bulk carrier of 107,140 dwt built in 1979 which was sold In December, 2005.
Full Year 2005 Results:
Total revenues for the full year 2005 amounted to $118.6 million, an increase of approximately 125% when compared to the $52.6 million earned during 2004. Net income for the full year in 2005, amounted to $67.8 million versus $32.0 million in 2004, an increase of approximately 112%. EBITDA for the full year 2005 was $ 96.2 million compared to $ 33.8 million during 2004.
An average of 14.4 vessels were operated during 2005 earning a blended average time charter equivalent rate of $ 20,705 per day.
Earnings per share basic and diluted for the full year 2005, calculated on 18,599,876 shares, were $3.65 compared to $2.75 in 2004, calculated on 11,640,058 shares, an increase of approximately 33%.
The results for the full year 2005 included a gain of $ 26.8 million or $1.44 per share from the sale of 4 older vessels, the M/V Almar I, the M/V "Petalis," the M/V "Lucky Lady" and the M/V "Fighting Lady" and a non cash charge of $5.2 million or $ 0.28 per share reflecting the effect of the management termination agreement dated March 2nd 2005, between Excel Maritime Carriers Ltd and its previous technical manager, Excel Management Ltd
CEO Christopher Georgakis commented: "We are very pleased to be reporting strong earnings for the fourth quarter and the full year 2005, with revenues up 122% and 125% over the same periods in 2004. These results reflect the successful integration of our new acquisitions into the initial fleet, as well as our balanced fleet deployment strategy of period and spot employment
We now have a fleet of 17 vessels with a total carrying capacity of 1,004,930 dwt. With 9 vessels, or 52% of our fleet deployed in the period markets, we believe we have generated considerable visibility of earnings for our shareholders, while at the same time being well positioned to take advantage of upswings in market conditions with the portion of our fleet which is trading in the spot market."
Mr. Georgakis continued: 2005 has been an important year in our companys development. In the past twelve months we have successfully transformed the company in terms of fleet composition, organizational structure and corporate governance and believe we have delivered on the promises we made to our shareholders at the beginning of the year
We set out with five major goals and made significant and tangible progress on all of them. Our goals have been to expand and renew the fleet , to deploy the majority of our new acquisitions in the period market, to generate EBITDA from fixed charters, for each vessel, equivalent to 30% of the acquisition value within 24 months, to maintain a low net debt to total capitalization ratio and to improve the trading liquidity of our stock."
So far, we have increased the deadweight capacity of our fleet by 180%, reduced the average fleet age by 12 years, secured over 50% of our vessels on medium to long term charters, generated EBITDA from these charters equivalent to 40% of the respective fleet acquisition value and currently maintain a 32% net debt to total capitalization ratio.
In addition, we believe we were the first U.S. listed dry-bulk company to have fully integrated our technical management function in-house. As of March 2005, the technical and commercial management of our fleet is conducted by Maryville Maritime Inc., our wholly owned subsidiary. We believe that this structure enables us to increase operational efficiency and control and reduce costs
Finally, we implemented a number of initiatives aimed at enhancing corporate transparency, increasing investor awareness and maximizing shareholder value. In this context, in August, we announced the organization of a majority independent Board of Directors and the establishment of an Internal Audit Department. Furthermore, in September we successfully moved our listing to the New York Stock Exchange, the dominant U.S. market of choice for companies from all over the world. Our listing on the New York Stock Exchange is a milestone in our company's history and we believe it has enhanced our company's positioning, visibility and recognition within the investment community, as well as the liquidity and quality of trading of our shares with tangible benefits for our shareholders."
CFO, Lefteris Papatrifon commented: 2005 was a record making year for Excels profitability. At the same time, and despite our rapid expansion, we were able to maintain a strong balance sheet throughout the year. We believe that our internal cash flow generation capacity, coupled with our moderate leverage, enables us to take full advantage of expansion opportunities that may arise in 2006.
Conference Call and Webcast:
As already announced, tomorrow, Tuesday, March 14, 2005 and at 10:00 a.m. EST, the company's management will host a conference call to discuss the results.
Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1866-819-7111 (from the US), 0800-953-0329 (from the UK) or +44(0)1452-542-301 (from outside the US). Please quote Excel Maritime.
In case of any problem with the above numbers, please dial 1866-869-2352 (from the US),
0800-694-1449 (from the UK) or +44(0)1452-560-304 (from outside the US). Quote Excel Maritime.
A telephonic replay of the conference call will be available until March 21, 2006 by dialing
1866-247-4222 (from the US), 0800-953-1533 (from the UK) or +44 1452-550-000 (from outside the US). Access Code: 1838801#
Slides and audio webcast:
There will also be a live -and then archived- webcast of the conference call, through the internet through the Excel Maritime Carriers website (www.excelmaritime.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Updated Fleet List:
The following table represents the existing fleet as of March 13, 2006:
Name | Type | Dwt | Year Built |
Panamax | |||
Isminaki | Panamax | 74,577 | 1998 |
Angela Star | Panamax | 73,798 | 1998 |
Elinakos | Panamax | 73,751 | 1997 |
Happy Day | Panamax | 71,694 | 1997 |
Powerful | Panamax | 70,083 | 1994 |
First Endeavour | Panamax | 69,111 | 1994 |
Rodon | Panamax | 73,670 | 1993 |
Birthday | Panamax | 71,504 | 1993 |
Renuar | Panamax | 70,128 | 1993 |
Forteza | Panamax | 69,634 | 1993 |
Total Panamax | 10 | 717,950 | |
Handymax | |||
Emerald | Handymax | 45,572 | 1998 |
Princess I | Handymax | 38,858 | 1994 |
Marybelle | Handymax | 42,552 | 1987 |
Attractive | Handymax | 41,524 | 1985 |
Lady | Handymax | 41,090 | 1985 |
Goldmar | Handymax | 39,697 | 1984 |
Swift | Handymax | 37,687 | 1984 |
Total Handymax | 7 | 286,980 | |
Grand Total | 17 | 1,004,930 | 12.9 |
Summary Fleet Data:
Fourth Quarter 2005 | Fourth Quarter 2004 | 12 Months 2005 | 12 Months 2004 | |
FLEET DATA | ||||
Average number of vessels (1) | 17.7 | 5.0 | 14.4 | 5.0 |
Available days for fleet (2) | 1,574 | 460 | 5,070 | 1,793 |
Calendar days for fleet (3) | 1,630 | 460 | 5,269 | 1,830 |
Fleet utilization (4) | 97% | 100% | 96% | 98% |
AVERAGE DAILY RESULTS | ||||
Time charter equivalent (5) | 19,992 | 29,218 | 20,705 | 24,465 |
Vessel operating expenses (6) | 4,625 | 4,417 | 4,596 | 4,108 |
General and administrative expenses (7) | 1,723 | 3,199 | 1,302 | 1,546 |
Total vessel operating expenses (8) | 6,348 | 7,616 | 5,898 | 5,654 |
(1) Average number of vessels 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.
(2) Available days for fleet are the total calendar days the vessels were in our possession for the relevant period after subtracting for off hire days associated with major repairs, drydocks or special or intermediate surveys.
(3) Calendar days are the total days we possessed the vessels in our fleet for the relevant period including off hire days associated with major repairs, drydockings or special or intermediate surveys.
(4) Fleet utilization is the percentage of time that our vessels were available for revenue generating available days, and is determined by dividing available days by fleet calendar days for the relevant period.
(5) Time charter equivalent, or TCE, 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. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping companys 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.
(6) Daily vessel operating expenses, which includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs is calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period.
(7) Daily general and administrative expense is calculated by dividing general and administrative expense by fleet calendar days for the relevant time period.
(8) Total vessel operating expenses, or TVOE, is a measurement of our total expenses associated with operating our vessels. TVOE is the sum of vessel operating expenses and general and administrative expenses. Daily TVOE is calculated by dividing TVOE by fleet calendar days for the relevant time period.
TCE Results by Type of Vessel & Employment
Fourth Quarter 2005 | Fourth Quarter 2004 | Full Year 2005 | Full Year 2004 | |
Capesize spot TCE Number of available days | 4,667 66 | 45,791 184 | 26,119 537 | 39,090 695 |
Panamax spot TCE Number of available days | 17,087 397 | N/A N/A | 16,475 1,130 | N/A N/A |
Panamax period TCE Number of available days | 24,731 495 | N/A N/A | 25,329 1,203 | N/A N/A |
Handymax spot TCE Number of available days | 17,998 276 | 18,219 276 | 17,182 998 | 15,208 1,098 |
Handymax period TCE Number of available days | 21,018 341 | N/A N/A | 20,493 1,206 | N/A N/A |
Total fleet spot TCE Number of available days | 16,318 739 | 29,217 460 | 18,683 2,665 | 24,465 1,793 |
Total fleet period TCE Number of available days | 23,217 836 | N/A N/A | 22,908 2,409 | N/A N/A |
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
Condensed Statement of Cash Flows
For the Years Ended December 31, 2005 (Unaudited) and December 31, 2004 (Audited)
(Expressed in thousands of U.S. Dollars)
2005 | 2004 | |
Cash and cash equivalents, beginning of year | 64,903 | 3,958 |
Provided by (Used in): | ||
Operating Activities | 73,548 | 32,033 |
Investing Activities | (417,745) | (26,220) |
Financing Activities | 337,786 | 55,132 |
Net increase (decrease) in cash and cash equivalents | (6,411) | 60,945 |
Cash and cash equivalents, end of year | 58,492 | 64,903 |
EBITDA Reconciliation (1)
(All amounts in thousands of US Dollars)
Quarter ended December 31, 2005 | Full Year 2005 | |
Net Income | 13,646 | 67,824 |
plus Net Interest Expense | 3,027 | 7,676 |
Plus Depreciation | 7,084 | 20,092 |
Plus Amortization | 111 | 622 |
EBITDA | 23,868 | 96,214 |
(1) Excel Maritime considers EBITDA to represent net income plus net interest expense and depreciation and amortization. The Companys Management uses EBITDA as a performance measure. The Company believes that EBITDA is useful to investors, because the shipping industry is capital intensive and may involve significant financing costs. EBITDA is not an item recognized by GAAP and should not be considered as an alternative to net income, operating income or any other indicator of a Companys operating performance required by GAAP. The Companys definition of EBITDA may not be the same as that used by other companies in the shipping or other industries.
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED DECEMBER 31, 2005 AND DECEMBER 31, 2004
(Expressed in thousands of U.S.Dollars - except per share data)
Fourth Quarter 2005 | Fourth Quarter 2004 | |
Unaudited | Unaudited | |
REVENUES | ||
Voyage Revenues | 35,569 | 15,954 |
Revenue from managing vessels | 131 | 135 |
| 35,700 | 16,089 |
EXPENSES | ||
Voyage expenses | 4,100 | 2,514 |
Vessel operating expenses | 7,539 | 1,831 |
Depreciation | 7,084 | 244 |
Amortization for drydocking and special survey | 111 | 161 |
Gain on Vessel's sale | (2,476) | - |
Management fee charged by a related party | - | 270 |
General and administrative expenses | 2,810 | 1,471 |
19,168 | 6,491 | |
Operating income | 16,532 | 9,598 |
OTHER INCOME(EXPENSES): | ||
Net Interest Income (Expense) | (3,027) | 15 |
Other Income (Expenses) | 141 | (23) |
Total other income(expenses),net | (2,886) | (8) |
Net Income | 13,646 | 9,590 |
Earnings per common share, basic & diluted | 0.68 | 0.80 |
Weighted average number of common shares, basis and diluted | 19,929,264 | 11,962,296 |
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2005 (UNAUDITED) AND DECEMBER 31, 2004 (AUDITED)
(Expressed in thousands of U.S.Dollars - except per share data)
December 31, | ||
2005 | 2004 | |
Unaudited | Audited | |
REVENUES | ||
Voyage Revenues, net | 118,082 | 51,966 |
Revenue from managing vessels | 522 | 637 |
| 118,604 | 52,603 |
EXPENSES | ||
Voyage expenses | 13,105 | 8,100 |
Vessel operating expenses | 24,215 | 7,518 |
Vessels Depreciation | 20,092 | 980 |
Amortization of drydocking and special survey | 622 | 733 |
Gain on sale of vessel | (26,795) | - |
Management fee charged by a related party | - | 270 |
Contract Termination expense (1) | 5,186 | - |
General and administrative expenses | 6,862 | 2,828 |
43,287 | 20,429 | |
Operating income | 75,317 | 32,174 |
OTHER INCOME(EXPENSES): | ||
Net Interest Income (Expense) | (7,676) | (61) |
Other Income (Expenses) | 183 | (63) |
Total other income(expenses),net | (7,493) | (124) |
Net Income | 67,824 | 32,050 |
Earnings per common share, basic & diluted | 3.65 | 2.75 |
Weighted average number of common shares, basic and diluted | 18,599,876 | 11,640,058 |
(1) Management is in the process of obtaining an independent expert valuation to corroborate their estimate of fair value
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2005 (UNAUDITED) AND DECEMBER 31, 2004 (AUDITED)
(Expressed in thousands of U.S. Dollars - except per share data)
December 31, 2005 | December 31, 2004 | |
Unaudited | Audited | |
ASSETS | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | 58,492 | 64,903 |
Restricted cash | 7,988 | 2,493 |
Accounts receivable | 2,238 | 2,460 |
Other Current Assets | 1,828 | 1,520 |
Total Current Assets | 70,546 | 71,376 |
FIXED ASSETS: | ||
Advances for vessel acquisition | - | 26,220 |
Vessels' cost | 486,397 | 18,612 |
Accumulated depreciation | (20,729) | (3,997) |
Office furniture & equipments | 524 | - |
Total fixed assets | 466,192 | 40,835 |
OTHER NON CURRENT ASSETS: | ||
Restricted cash | 22,282 | - |
Other Non Current Assets | 2,004 | 1,386 |
Total Assets | 561,024 | 113,997 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
CURRENT LIABILITIES: | ||
Current portion of long term debt, net of deferred financing fees | 41,387 | 7,704 |
Accounts payable | 3,307 | 1,262 |
Other Current Liabilities | 6,827 | 1,600 |
Total Current Liabilities | 51,521 | 10,566 |
LONG-TERM DEBT, net of current portion and net of deferred financing fees | 221,226 | 5,616 |
STOCKHOLDERS' EQUITY: | ||
Preferred Stock, $0,10 par value,5,000,000 shares authorized, none issued | - | - |
Common Stock, $0,01 par value,49,000,000 A Class shares and 1,000,000 B | ||
Class shares authorized:13.696,153 A Class shares and 114,946 B Class shares, | ||
issued and outstanding at December 31,2004. | ||
19.595.153 A Class shares and 114.946 B Class shares, | ||
issued and outstanding at December 31, 2005. | 197 | 138 |
Additional paid-in capital | 181,488 | 63,738 |
Shares to be issued | 6,853 | - |
Due from related party | (2,024) | - |
Retained earnings | 101,952 | 34,128 |
288,466 | 98,004 | |
Less:Treasury stock (78,650 A Class shares and 588 B Class shares) at December 31,2004 and December 31,2005 | (189) | (189) |
Total stockholders' equity | 288,277 | 97,815 |
Total Liabilities & Stockholders' Equity | 561,024 | 113,997 |
About Excel Maritime Carriers Ltd
The Company 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. The companys current fleet consists of 17 vessels (ten Panamax and seven Handymax vessels) with a total carrying capacity of 1,004,930 dwt. The Company was incorporated in 1988 and its common stock had been listed on the American Stock Exchange (AMEX) since 1998. As of September 15, 2005 Excel Maritime is listed on the New York Stock Exchange (NYSE), trading under the symbol EXM. 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 Companys 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 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 Companys 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 Companys expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
EXCEL MARITIME CARRIERS LTD.
(registrant)
Dated: March 13, 2006 By: /s/ Christopher J. Georgakis
----------------------------
Christopher J. Georgakis
President and Chief Executive Officer