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 July 2011
EXCEL MARITIME CARRIERS LTD.
(Translation of registrant's name into English)
Par La Ville Place
14 Par-La-Ville Road
Hamilton, HM JX Bermuda
(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 July 28, 2011: Excel Maritime Reports Results for the Second Quarter and Six Month period ended June 30, 2011.
Exhibit 1
![[f072811exm6k002.gif]](f072811exm6k002.gif)
Excel Maritime Reports Results for the Second Quarter and Six Month period ended June 30, 2011
ATHENS, GREECE – July 28, 2011 – 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 second quarter and six month period ended June 30, 2011.
Second Quarter Highlights & Recent Developments:
·
Operating profitable quarter with Adjusted EBITDA at $44.0 million and operating free cash flow at $27.6 million;
·
Comprehensive financial covenant relaxation agreement in place with lenders under our credit facilities through December 2012, including the relaxation of vessel value covenant;
·
Further increase in charter coverage to 84% of available vessel days for 2011 and 54% for the next 12 months to June 2012, including entering into eight additional period charters of more than 1 year;
·
Disposal of 1985 Handymax MV Lady on advantageous 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, “During the second quarter, our operations recorded results with positive operating free cash flow generation. During the quarter, we continued to use our cash flow to repay bank debt without any further newbuilding funding obligations. We successfully secured from our lenders, financial covenant relaxation, which will assist in connection with the significant fluctuations in vessel values and market volatility the market is experiencing. The operating environment during the last quarter was more adverse as the market is trying to absorb increased tonnage coming onto the market. During this period, Excel continued to increase its charter coverage to 54% for the next 12 months improving further upon cash flow visibility. As half of the days of these secured contracts provide an upside potential through profit sharing arrangements, Excel is well positioned to take advantage of improvements in economic conditions and market sentiment.’’
·
Covenant Relaxation Agreement
During July 2011, we entered into agreements to amend our Nordea Syndicated Facility, our Credit Suisse Facility and our DVB Facility in order to secure the appropriate covenant relaxation for each credit facility, in connection with the weaker charter market condition and the high volatility in asset values the market is currently experiencing, both of which impact our ability to comply with financial covenants under those credit facilities. The amendments are in effect from June 30, 2011 through and including December 31, 2012 and they mainly relate to relaxation of the leverage ratio, the interest cover ratio, total net debt to EBITDA ratio and vessels’ security value. The amendments were made against an increase of facility margins to 2.5% and minimum liquidity for the waiver period. Under the amended facilities, dividends and investments are permitted subject to compliance with the original covenants or with the prior consent of the majority lenders.
·
Selected Financial Data
| Three-Months ended June 30, | Six-Months ended June 30, | ||
| 2010 | 2011 | 2010 | 2011 |
| (amounts in millions of U.S Dollars, except per share data and daily TCE) | |||
Voyage Revenues | $107.0 | $92.0 | $211.3 | $189.2 |
Net Income (Loss) | $78.9 | $(16.0) | $146.2 | $(17.0) |
Adjusted Net Income (Loss) | $3.1 | $(5.6) | $12.0 | $(5.1) |
Earnings (losses) per Share (Diluted) | $0.95 | $(0.19) | $1.78 | $(0.20) |
Adjusted Earnings (losses) per Share (Diluted) | $0.04 | $(0.07) | $0.15 | $(0.06) |
Adjusted EBITDA | $60.1 | $44.0 | $122.1 | $92.0 |
Time Charter Equivalent (TCE) per day | $24,062 | $18,932 | $24,254 | $19,279 |
A reconciliation of the non-GAAP measures discussed above is included in a later section of this release.
·
Second Quarter 2011 Results
Excel reported voyage revenues for the second quarter of 2011 amounting to $92.0 million as compared to $107.0 million for the same period in 2010, a decrease of approximately 14.0%.
Adjusted EBITDA for the second quarter of 2011 was $44.0 million compared to $60.1 million for the second quarter of 2010, a decrease of approximately 26.8%.
Net loss for the quarter amounted to $16.0 million or $0.19 per weighted average diluted share compared to a net profit of $78.9 million or $0.95 per weighted average diluted share in the second quarter of 2010.
The second quarter 2011 results include a non-cash unrealized loss on derivative financial instruments of $1.3 million compared to a non-cash unrealized loss on derivative financial instruments of $5.1 million in the corresponding period in 2010.
Included in the above net results 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 loss of $9.1 million ($0.11 per weighted average diluted share) and a net gain of $80.9 million ($0.98 per weighted average diluted share) for the second quarter of 2011 and 2010, respectively.
Adjusted net loss, excluding all the above items, for the second quarter of 2011 would have amounted to $5.6 million or $0.07 per weighted average diluted share compared to an adjusted net income, excluding all the above items, for the second quarter of 2010 of $3.1 million or $0.04 per weighted average diluted share.
Included in the above adjusted net results is also the amortization of stock based compensation expense of $2.0 million ($0.02 per weighted average diluted share) and $1.1 million ($0.01 per weighted average diluted share), for the quarter ended June 30, 2011 and 2010, respectively.
An average of 48.0 and 47.7 vessels were operated during the second quarter of 2011 and 2010, respectively, earning a blended average time charter equivalent rate of $18,932 and $24,062 per day, respectively.
A reconciliation of adjusted EBITDA to Net Income and adjusted net income to net income and a calculation of the TCE is provided in a later section of this press release.
·
Six Months to June 30, 2011 Results
Excel reported voyage revenues for the six months to June 30, 2011 amounting to $189.2 million as compared to $211.3 million for the same period in 2010, a decrease of approximately 10.5%.
Adjusted EBITDA for the period was $92.0 million compared to $122.1 million for the respective period of 2010, a decrease of approximately 24.7%.
Net loss for the six months to June 30, 2011 amounted to $17.0 million or $0.20 per weighted average diluted share compared to a net profit of $146.2 million or $1.78 per weighted average diluted share in the six months to June 30, 2010.
The results for the six month period ended June 30, 2011 include a non-cash unrealized gain on derivative financial instruments of $5.0 million compared to a non-cash unrealized loss on derivative financial instruments of $4.8 million in the corresponding period in 2010. In addition, the results for the six month period ended June 30, 2011 include a non cash gain in connection with the sale of M/V Marybelle amounting to $1.3 million.
Included in the above net results 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 loss of $18.1 million ($0.22 per weighted average diluted share) and a net gain of $138.9 million ($1.69 per weighted average diluted share) for the six month periods ended June 30, 2011 and 2010, respectively.
Adjusted net loss, excluding all the above items, for the six month period ended June 30, 2011 would have amounted to $5.1 million or $0.06 per weighted average diluted share compared to an adjusted net income, excluding all the above items, for the six month period ended June 30, 2010 of $12.0 million or $0.15 per weighted average diluted share.
Included in the above adjusted net results is also the amortization of stock based compensation expense of $3.3 million ($0.04 per weighted average diluted share) and $1.9 million ($0.02 per weighted average diluted share), for the six months to June 30, 2011 and 2010, respectively.
An average of 48.2 and 47.3 vessels were operated during the six months to June 30, 2011 and 2010, respectively, earning a blended average time charter equivalent rate of $19,279 and $24,254 per day, respectively.
A reconciliation of adjusted EBITDA to Net Income and adjusted net income to net income and a calculation of the TCE is provided in a later section of this press release.
·
Recent Vessels’ Fixtures
Fleet Coverage, as of July 26, ‘11 | Full Year '11 | 12 mos forward |
Capesize Fleet | 95% | 84% |
Kamsarmax / Panamax Fleet | 85% | 54% |
Fleet - Fixed Charters | 84% | 54% |
% of Fixed Charters with upside participation | 33% | 49% |
As of today, we have secured under contracted employment 95% and 85% of our available days of our Capesize vessels and Kamsarmax/Panamax vessels respectively, for the year ending December 31, 2011. In regards to the entire fleet, 84% of the available days of 2011 have been fixed and 33% of the days of these secured contracts provide an upside potential through profit sharing arrangements or index linked structures but all with floors minimum protection.
During July 2011 the M/V Angela Star (73,798 dwt, 1998), the M/V Linda Leah (73,317 dwt,1997) and the M/V Isminaki (74,577 dwt, 1998) were fixed under separate time charters for a period of 12-16 months at a guaranteed minimum rate (floor) of $11,000 per day and a profit sharing arrangement. Also, the M/V Iron Bradyn (82,769 dwt, 2005) was fixed under a time charter for a period of 12-16 months at a daily gross rate of $12,000.
In June 2011, the M/V Iron Vassilis (82,257 dwt, 2006) and the M/V Happy Day (71,694 dwt, 1997) were fixed under separate time charter for a period of 11-14 months at a daily gross rate of $14,000 and $13,000, respectively.
In June 2011, the M/V Coal Hunter (82,298 dwt, 2006) and the M/V Santa Barbara (82,266 dwt, 2006) were fixed under separate time charters for a period of 23-25 months at a daily gross rate of $15,000 for the first year. The daily gross rate for the second year is linked to the Baltic Panamax Index (BPI) with a guaranteed minimum rate (floor) at $14,000 per day and a profit sharing arrangement.
·
Fleet developments
In June 2011, we cancelled four shipbuilding contracts for the construction of four Capesize vessels entered by our consolidated joint ventures, namely Fritz Shipco LLC, Benthe Shipco LLC, Gayle Frances Shipco LLC and Iron Lena Shipco LLC. As of the time of cancellation, no refund guarantees were received, the construction of the vessels had not commenced and all vessels were delayed on their contracted deliveries. As no payments were made the cancellation has no impact on the Company’s financial position and will not affect the Company’s financial statements.
On May 31, 2011, we entered into a Memorandum of Agreement (MOA) to sell the M/V Lady (41,090 dwt, 1985) for net proceeds of approximately $7.2 million. The resulting gain on the sale of the vessel is estimated at approximately $5.0 million and will be recognized on the vessel delivery date.
Conference Call Details:
Tomorrow July 29, 2011 at 8:30 A.M. EDT, the Company’s management will host a conference call to discuss these 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 5, 2011 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 s’ 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 Statements and Other Financial Data Follow -
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS
FOR THE QUARTER ENDED JUNE 30, 2010 AND 2011
(In thousands of U.S. Dollars, except for share and per share data)
|
| Second Quarter | |||
|
| 2010 |
| 2011 | |
REVENUES: |
|
|
|
| |
Voyage revenues | $ | 107,007 | $ | 91,962 | |
Time Charter fair value amortization |
| 90,900 |
| 845 | |
Revenue from managing related party vessels |
| 105 |
| - | |
Revenue from operations |
| 198,012 |
| 92,807 | |
|
|
|
|
|
|
EXPENSES: |
|
|
|
| |
| Voyage expenses |
| 7,216 |
| 8,437 |
| Charter hire expense |
| 8,185 |
| 8,185 |
| Charter hire amortization |
| 9,959 |
| 9,959 |
| Commissions to related parties |
| 774 |
| 1,019 |
| Vessel operating expenses |
| 22,028 |
| 21,846 |
| Depreciation expense |
| 31,242 |
| 31,952 |
| Dry-docking and special survey cost |
| 6,018 |
| 3,131 |
| General and administrative expenses |
| 9,519 |
| 10,644 |
|
|
| 94,941 |
| 95,173 |
|
|
|
|
|
|
| Income (Loss) from operations |
| 103,071 |
| (2,366) |
|
|
|
|
|
|
OTHER INCOME (EXPENSES): |
|
|
|
| |
| Interest and finance costs |
| (11,174) |
| (7,654) |
| Interest income |
| 432 |
| 403 |
| Losses on derivative financial instruments |
| (12,670) |
| (6,287) |
| Foreign exchange gains (losses) |
| 173 |
| (185) |
| Other, net |
| (357) |
| 631 |
| Total other expenses, net |
| (23,596) |
| (13,092) |
|
|
|
|
|
|
Net income (loss) before taxes and loss assumed (income earned) by non controlling interest |
| 79,475 |
| (15,458) | |
|
|
|
|
| |
US Source Income taxes |
| (286) |
| (252) | |
|
|
|
|
| |
Net income (loss) |
| 79,189 |
| (15,710) | |
|
|
|
|
|
|
Income earned by non-controlling interest |
| (270) |
| (287) | |
|
|
|
|
| |
Net income (loss) attributable to Excel Maritime Carriers Ltd. | $ | 78,919 | $ | (15,997) | |
|
|
|
|
| |
Earnings (losses) per common share, basic | $ | 0.98 | $ | (0.19) | |
Weighted average number of shares, basic |
| 80,388,377 |
| 83,819,299 | |
Earnings (losses) per common share, diluted | $ | 0.95 | $ | (0.19) | |
Weighted average number of shares, diluted |
| 82,685,340 |
| 83,819,299 | |
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS
FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2010 AND 2011
(In thousands of U.S. Dollars, except for share and per share data)
|
| Six month period Ended June 30, | |||
|
| 2010 |
| 2011 | |
REVENUES: |
|
|
|
| |
Voyage revenues | $ | 211,252 | $ | 189,240 | |
Time Charter fair value amortization |
| 158,742 |
| 1,681 | |
Revenue from managing related party vessels |
| 210 |
| 17 | |
Revenue from operations |
| 370,204 |
| 190,938 | |
|
|
|
|
|
|
EXPENSES: |
|
|
|
| |
| Voyage expenses |
| 13,266 |
| 21,557 |
| Charter hire expense |
| 16,281 |
| 16,281 |
| Charter hire amortization |
| 19,808 |
| 19,808 |
| Commissions to related parties |
| 1,508 |
| 2,092 |
| Vessel operating expenses |
| 43,113 |
| 42,875 |
| Depreciation expense |
| 61,643 |
| 63,666 |
| Dry-docking and special survey cost |
| 9,538 |
| 4,277 |
| General and administrative expenses |
| 16,443 |
| 17,063 |
|
|
| 181,600 |
| 187,619 |
|
|
|
|
|
|
| Gain on sale of vessel |
| - |
| 1,274 |
|
|
|
|
|
|
| Income from operations |
| 188,604 |
| 4,593 |
|
|
|
|
|
|
OTHER INCOME (EXPENSES): |
|
|
|
| |
| Interest and finance costs |
| (21,944) |
| (15,241) |
| Interest income |
| 784 |
| 824 |
| Losses on derivative financial instruments |
| (19,991) |
| (6,010) |
| Foreign exchange gains (losses) |
| 252 |
| (344) |
| Other, net |
| (661) |
| 221 |
| Total other expenses, net |
| (41,560) |
| (20,550) |
|
|
|
|
|
|
Net income (loss) before taxes and loss assumed (income earned) by non controlling interest |
| 147,044 |
| (15,957) | |
|
|
|
|
| |
US Source Income taxes |
| (572) |
| (504) | |
|
|
|
|
| |
Net income (loss) |
| 146,472 |
| (16,461) | |
|
|
|
|
|
|
Income earned by non-controlling interest |
| (257) |
| (560) | |
|
|
|
|
| |
Net income (loss) attributable to Excel Maritime Carriers Ltd. | $ | 146,215 | $ | (17,021) | |
|
|
|
|
| |
Earnings (losses) per common share, basic | $ | 1.83 | $ | (0.20) | |
Weighted average number of shares, basic |
| 79,681,876 |
| 83,730,845 | |
Earnings (losses) per common share, diluted | $ | 1.78 | $ | (0.20) | |
Weighted average number of shares, diluted |
| 82,091,338 |
| 83,730,845 | |
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2010 AND JUNE 30, 2011 (UNAUDITED)
(In thousands of U.S. Dollars)
ASSETS |
| December 31, 2010 |
| June 30, 2011 | |
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
| |
| Cash and cash equivalents | $ | 65,917 | $ | 59,726 |
| Restricted cash |
| 6,721 |
| 6,557 |
| Restricted cash- sale of vessel |
| - |
| 1,500 |
| Accounts receivable |
| 7,961 |
| 11,204 |
| Other current assets |
| 16,602 |
| 11,747 |
| Total current assets |
| 97,201 |
| 90,734 |
|
|
|
|
|
|
FIXED ASSETS: |
|
|
|
| |
| Vessels, net |
| 2,622,631 |
| 2,645,476 |
| Advances for vessels under construction |
| 76,585 |
| - |
| Office furniture and equipment, net |
| 1,147 |
| 1,122 |
| Total fixed assets, net |
| 2,700,363 |
| 2,646,598 |
|
|
|
|
|
|
OTHER NON CURRENT ASSETS: |
|
|
|
| |
| Time charters acquired, net |
| 184,366 |
| 164,558 |
| Derivative financial instruments |
| 923 |
| 277 |
| Restricted cash |
| 48,967 |
| 58,750 |
|
|
|
|
|
|
| Total assets | $ | 3,031,820 | $ | 2,960,917 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
| |
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
| |
| Current portion of long-term debt, net of deferred financing fees | $ | 107,369 | $ | 104,182 |
| Accounts payable |
| 11,101 |
| 18,204 |
| Other current liabilities |
| 32,322 |
| 28,550 |
| Derivative financial instruments |
| 21,945 |
| 21,814 |
| Total current liabilities |
| 172,737 |
| 172,750 |
|
|
|
|
|
|
Long-term debt, net of current portion and net of deferred financing fees |
| 1,046,672 |
| 995,800 | |
Time charters acquired, net |
| 18,108 |
| 16,427 | |
Derivative financial instruments |
| 30,155 |
| 26,423 | |
|
|
|
|
| |
Total liabilities |
| 1,267,672 |
| 1,211,400 | |
|
|
|
|
| |
Commitments and contingencies |
| - |
| - | |
|
|
|
|
| |
STOCKHOLDERS’ EQUITY: |
|
|
|
| |
| Preferred stock |
| - |
| - |
| Common stock |
| 851 |
| 857 |
| Additional paid-in capital |
| 1,061,134 |
| 1,064,458 |
| Other Comprehensive Income (Loss) |
| 211 |
| (1,289) |
| Retained earnings |
| 691,674 |
| 674,653 |
| Less: Treasury stock |
| (189) |
| (189) |
| Excel Maritime Carriers Ltd. Stockholders’ equity |
| 1,753,681 |
| 1,738,490 |
| Non-controlling interests |
| 10,467 |
| 11,027 |
| Total Stockholders’ Equity |
| 1,764,148 |
| 1,749,517 |
|
|
|
|
|
|
| Total liabilities and stockholders’ equity | $ | 3,031,820 | $ | 2,960,917 |
|
|
|
|
|
|
EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES
CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2010 AND 2011
(In thousands of U.S. Dollars)
|
|
|
| Six month period ended June 30, | ||
|
|
|
| 2010 |
| 2011 |
Cash Flows from Operating Activities: |
|
|
|
| ||
| Net income (loss) | $ | 146,472 | $ | (16,461) | |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities |
| (65,616) |
| 84,129 | |
| Changes in operating assets and liabilities: |
|
|
|
| |
|
| Operating assets |
| 874 |
| 1,874 |
|
| Operating liabilities |
| 6,457 |
| 1,831 |
Net Cash provided by Operating Activities | $ | 88,187 | $ | 71,373 | ||
|
|
|
|
|
|
|
Cash Flows from Investing Activities: |
|
|
|
| ||
|
| Advances for vessels under construction |
| (59,900) |
| (18,267) |
|
| Additions to vessel cost |
| - |
| (54) |
|
| Additions to office furniture and equipment |
| (56) |
| (186) |
|
| Proceeds from sale of vessel |
| - |
| 9,880 |
|
| Advance for vessel sale |
| - |
| 1,500 |
|
| Restricted cash-sale of vessel |
| - |
| (1,500) |
Net cash used in Investing Activities | $ | (59,956) | $ | (8,627) | ||
|
|
|
|
|
|
|
Cash Flows from Financing Activities: |
|
|
|
| ||
|
| (Increase) decrease in restricted cash |
| 18,634 |
| (9,619) |
|
| Proceeds from long-term debt |
| 60,967 |
| 16,100 |
|
| Repayment of long-term debt |
| (109,703) |
| (75,409) |
|
| Payment of financing costs |
| (802) |
| (9) |
|
| Issuance of common stock-related party |
| 5,000 |
| - |
|
| Capital contributions from non-controlling interest owners |
| 4,174 |
| - |
Net cash used in Financing Activities | $ | (21,730) | $ | (68,937) | ||
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
| 6,501 |
| (6,191) | ||
Cash and cash equivalents at beginning of period |
| 100,098 |
| 65,917 | ||
Cash and cash equivalents at end of the period | $ | 106,599 | $ | 59,726 | ||
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION: |
|
|
|
| ||
| Cash paid during the period for: |
|
|
|
| |
|
| Interest payments | $ | 17,306 | $ | 10,422 |
|
| U.S Source Income taxes |
| 639 |
| 514 |
Adjusted EBITDA Reconciliation | ||||||||
(all amounts in thousands of U.S. Dollars) | ||||||||
|
| Three month period ended June 30, |
| Six month period ended June 30, | ||||
|
| 2010 |
| 2011 |
| 2010 |
| 2011 |
Net income (loss) | $ | 78,919 | $ | (15,997) | $ | 146,215 | $ | (17,021) |
Interest and finance costs, net (1) |
| 18,287 |
| 12,263 |
| 36,388 |
| 25,406 |
Depreciation |
| 31,242 |
| 31,952 |
| 61,643 |
| 63,666 |
Dry-dock and special survey cost |
| 6,018 |
| 3,131 |
| 9,538 |
| 4,277 |
Unrealized swap (gain) loss |
| 5,125 |
| 1,275 |
| 4,763 |
| (4,979) |
Amortization of T/C fair values (2) |
| (80,941) |
| 9,114 |
| (138,934) |
| 18,127 |
Stock based compensation |
| 1,146 |
| 2,017 |
| 1,871 |
| 3,330 |
Gain on sale of vessel |
| - |
| - |
| - |
| (1,274) |
Taxes |
| 286 |
| 252 |
| 572 |
| 504 |
Adjusted EBITDA | $ | 60,082 | $ | 44,007 | $ | 122,056 | $ | 92,036 |
(1) Includes derivative financial instruments paid and received | ||||||||
(2) Analysis: | ||||||||
|
| Three month period ended June 30, |
| Six month period ended June 30, | ||||
|
| 2010 |
| 2011 |
| 2010 |
| 2011 |
Non-cash amortization of unfavorable time charters in revenue | $ | (63,974) | $ | (845) | $ | (131,816) | $ | (1,681) |
Non-cash accelerated amortization of M/V Iron Miner time charter fair value due to charter termination |
| (26,926) |
| - |
| (26,926) |
| - |
Non-cash amortization of favorable time charters in charter hire expense |
| 9,959 |
| 9,959 |
| 19,808 |
| 19,808 |
| $ | (80,941) | $ | 9,114 | $ | (138,934) | $ | 18,127 |
Reconciliation of Net Income (loss) to Adjusted Net Income (loss) | ||||||||
(all amounts in thousands of U.S. Dollars) | ||||||||
|
| Three month period ended June 30, |
| Six month period ended June 30, | ||||
|
| 2010 |
| 2011 |
| 2010 |
| 2011 |
Net income (loss) | $ | 78,919 | $ | (15,997) | $ | 146,215 | $ | (17,021) |
Unrealized swap (gain) loss |
| 5,125 |
| 1,275 |
| 4,763 |
| (4,979) |
Gain on sale of vessel |
| - |
| - |
| - |
| (1,274) |
Amortization of T/C fair values |
| (80,941) |
| 9,114 |
| (138,934) |
| 18,127 |
Adjusted Net income (loss) | $ | 3,103 | $ | (5,608) | $ | 12,044 | $ | (5,147) |
Reconciliation of Earnings (losses) per Share (Diluted) to Adjusted Earnings (losses) per Share (Diluted) | ||||||||||
(all amounts in thousands of U.S. Dollars) | ||||||||||
|
| Three month period ended June 30, |
| Six month period ended June 30, | ||||||
|
| 2010 |
| 2011 |
| 2010 |
| 2011 | ||
Earnings (losses) per Share (Diluted) | $ | 0.95 | $ | (0.19) | $ | 1.78 | $ | (0.20) | ||
Unrealized swap (gain) loss |
| 0.07 |
| 0.01 |
| 0.06 |
| (0.06) | ||
Gain on sale of vessel |
| - |
| - |
| - |
| (0.02) | ||
Amortization of T/C fair values |
| (0.98) |
| 0.11 |
| (1.69) |
| 0.22 | ||
|
| |||||||||
Adjusted Earnings per Share (Diluted) | $ | 0.04 | $ | (0.07) | $ | 0.15 | $ | (0.06) | ||
Disclosure of Non-GAAP Financial Measures
Adjusted EBITDA represents net income plus net interest expense, depreciation, amortization, and taxes eliminating the effect of deferred stock-based compensation, gains or losses on the sale of vessels, amortization of deferred time charter assets and liabilities and unrealized gains or losses on derivatives, which are significant non-cash items. Following Excel’ s change in the method of accounting for dry docking and special survey costs, such costs are also included in the adjustments to EBITDA for comparability purposes. Excel’s management uses adjusted EBITDA as a performance measure. Excel 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. Excel’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 derivative transactions and any gains or losses on sale of vessels, both of which are significant non-cash items and eliminating the effect of deferred time charter assets and liabilities. Adjusted Earnings per Share (diluted) represents Adjusted Net Income divided by the 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. Excel has included an adjusted net income and adjusted earnings per share (diluted) calculation in this period in order to facilitate comparability between Excel’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 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 (seven Capesize, 14 Kamsarmax, 21 Panamax, two Supramax and four 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.
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 Excel’s growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters.
Words such as “will” “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements.
Although Excel 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 Excel. 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 Excel operates; risks associated with operations outside the United States; and other factors listed from time to time in Excel’s filings with the Securities and Exchange Commission. Excel 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 Excel’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
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: Pavlos Kanellopoulos Chief Financial Officer Excel Maritime Carriers Ltd. 17th Km National Road Athens-Lamia & Finikos Street 145 64 Nea Kifisia Athens, Greece Tel: +30-210-62-09-520 Fax: +30-210-62-09-528
E-Mail: ir@excelmaritime.com www.excelmaritime.com |
APPENDIX
The following key indicators highlight the Company’s financial and operating performance for the three and six months ended June 30, 2010 compared to the corresponding periods in the prior year.
Vessel Employment | ||||||
(In U.S. Dollars per day, unless otherwise stated) | ||||||
|
| Three month period ended June 30, |
| Six month period ended June 30, | ||
|
| 2010 | 2011 |
| 2010 | 2011 |
Calendar days |
| 4,339 | 4,368 |
| 8,569 | 8,719 |
Available days |
| 4,115 | 4,358 |
| 8,101 | 8,589 |
Utilization |
| 94.8% | 99.8% |
| 94.5% | 98.5% |
Time charter equivalent per ship per day |
| $24,062 | $18,932 |
| $24,254 | $19,279 |
Net daily revenue per ship per day |
| $22,820 | $18,889 |
| $22,929 | $18,992 |
Vessel operating expenses per ship per day |
| $(5,077) | $(5,001) |
| $(5,031) | $(4,917) |
Net Operating cash flows per ship per day before G&A expenses |
| $17,743 | $13,888 |
| $17,898 | $14,075 |
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. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenue.
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 rate (“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 three month period ended June 30, |
| For the six month period ended June 30, | ||||
|
| 2010 |
| 2011 |
| 2010 |
| 2011 |
Voyage revenues | $ | 107,007 | $ | 91,962 | $ | 211,252 | $ | 189,240 |
Voyage expenses |
| (7,990) |
| (9,456) |
| (14,774) |
| (23,649) |
Total revenue, net of voyage expenses | $ | 99,017 | $ | 82,506 | $ | 196,478 | $ | 165,591 |
Total available days |
| 4,115 |
| 4,358 |
| 8,101 |
| 8,589 |
Daily Time charter equivalent | $ | 24,062 | $ | 18,932 | $ | 24,254 | $ | 19,279 |
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) |
| 3Q’11 | 4Q’11 | 1Q’12 | 2Q’12 |
| Total |
|
|
|
|
|
|
|
|
Amortization of unfavorable time charters (1) |
| $0.9 | $0.9 | $0.8 | $0.8 |
| $3.4 |
Amortization of favorable time charters (2) |
| $(10.1) | $(10.1) | $(10.1) | $(10.0) |
| $(40.3) |
(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 July 26, 2011:
| Vessel Name | Dwt | Year Built | Charter Type | Daily rate | Average Charter Expiration | |
1 | Mairaki (1) | 181,000 | 2011 | Fixed | $28,000 |
| Apr 2016 |
2 | Christine (1) (2) | 180,000 | 2010 | Fixed | $25,000 |
| Jan 2016 |
3 | Sandra (1) | 180,274 | 2008 | Fixed | $26,500 |
| May 2016 |
4 | Iron Miner | 177,931 | 2007 | Fixed | $41,355 |
| Feb 2012 |
5 | Kirmar | 164,218 | 2001 | Fixed | $49,000 | (net) | May 2013 |
6 | Iron Beauty | 164,218 | 2001 | Spot |
|
|
|
7 | Lowlands Beilun (1) | 170,162 | 1999 | Fixed | $28,000 |
| Nov 2015 |
| Total Capesize (7) | 1,217,803 |
|
|
|
|
|
8 | Iron Manolis (3) | 82,269 | 2007 | Fixed | $14,500 | (floor) | Dec 2011 |
9 | Iron Brooke(3) | 82,594 | 2007 | Fixed | $14,500 | (floor) | Dec 2011 |
10 | Iron Lindrew(3) | 82,598 | 2007 | Fixed | $14,500 | (floor) | Jan 2012 |
11 | Pascha | 82,574 | 2006 | Fixed | $24,000 |
| Nov 2011 |
12 | Coal Gypsy | 82,221 | 2006 | Fixed | $24,000 |
| Dec 2011 |
13 | Iron Anne(3) | 82,220 | 2006 | Fixed | $14,500 | (floor) | Dec 2011 |
14 | Iron Vassilis | 82,257 | 2006 | Fixed | $14,000 |
| Jul 2012 |
15 | Iron Bill (3) | 82,187 | 2006 | Fixed | $14,500 | (floor) | Jun 2012 |
16 | Ore Hansa(3) | 82,209 | 2006 | Fixed | $15,000 | (floor) | Feb 2012 |
17 | Iron Kalypso(3) | 82,224 | 2006 | Fixed | $15,000 | (floor) | Feb 2012 |
18 | Iron Fuzeyya(3) | 82,209 | 2006 | Fixed | $15,000 | (floor) | Jan 2012 |
19 | Santa Barbara(4) | 82,266 | 2006 | Fixed | $15,000 | (year 1) | Jun 2013 |
20 | Coal Hunter(4) | 82,298 | 2006 | Fixed | $15,000 | (year 1) | Jun 2013 |
21 | Iron Bradyn(5) | 82,769 | 2005 | Fixed | $12,000 |
| Nov 2012 |
| Total Kamsarmax (14) | 1,152,895 |
|
|
|
|
|
22 | Grain Harvester | 76,417 | 2004 | Fixed | $15,000 |
| Nov 2011 |
23 | Grain Express | 76,466 | 2004 | Fixed | $24,000 |
| Dec 2011 |
24 | Iron Knight | 76,429 | 2004 | Fixed | $15,000 |
| Oct 2011 |
25 | Coal Pride | 72,493 | 1999 | Fixed | $16,750 |
| Apr 2012 |
26 | Isminaki(5),(6) | 74,577 | 1998 | Fixed | $11,000 | (floor) | Nov 2012 |
27 | Angela Star(5),(6) | 73,798 | 1998 | Fixed | $11,000 | (floor) | Nov 2012 |
28 | Elinakos | 73,751 | 1997 | Fixed | $14,600 |
| Dec 2011 |
29 | Happy Day | 71,694 | 1997 | Fixed | $13,000 |
| Jul 2012 |
30 | Iron Man (7) | 72,861 | 1997 | Spot |
|
|
|
31 | Coal Age (7) | 72,824 | 1997 | Fixed | $14,500 |
| Oct 2011 |
32 | Fearless I (7) | 73,427 | 1997 | Fixed | $24,650 |
| Oct 2011 |
33 | Barbara (7) | 73,307 | 1997 | Fixed | $15,000 |
| Aug 2011 |
34 | Linda Leah(5), (6), (7) | 73,317 | 1997 | Fixed | $11,000 | (floor) | Oct 2012 |
35 | King Coal (7) | 72,873 | 1997 | Spot |
|
|
|
36 | Coal Glory (7) | 73,670 | 1995 | Fixed | $16,750 |
| Apr 2012 |
37 | Powerful | 70,083 | 1994 | Spot |
|
|
|
38 | First Endeavour | 69,111 | 1994 | Fixed | $17,500 |
| Feb 2012 |
39 | Rodon | 73,656 | 1993 | Spot |
|
|
|
40 | Birthday | 71,504 | 1993 | Spot |
|
|
|
41 | Renuar | 70,155 | 1993 | Spot |
|
|
|
42 | Fortezza | 69,634 | 1993 | Spot |
|
|
|
| Total Panamax (21) | 1,532,047 |
|
|
|
|
|
43 | July M | 55,567 | 2005 | Spot |
|
|
|
44 | Mairouli | 53,206 | 2005 | Spot |
|
|
|
| Total Supramax (2) | 108,773 |
|
|
|
|
|
45 | Emerald | 45,588 | 1998 | Spot |
|
|
|
46 | Princess I | 38,858 | 1994 | Spot |
|
|
|
47 | Attractive | 41,524 | 1985 | Spot |
|
|
|
48 | Lady | 41,090 | 1985 | Spot |
|
|
|
| Total Handymax (4) | 167,060 |
|
|
|
|
|
| Total Fleet (48) | 4,178,578 |
|
|
|
|
|
| Average age |
| 10.5 Yrs |
|
|
|
|
(1) The charter has a 50% profit sharing over the indicated base daily time charter rate based on the monthly AV4 BCI Time Charter Rate, which is the Baltic Capesize Index Average of four specific time charter routes as published daily by the Baltic Exchange in London.
(2) The Company holds a 71.4% ownership interest in the joint venture that owns the vessel.
(3) Charter rate based on the average of the AV4 BPI rates, as published by the Baltic Exchange for the preceding 15 days prior to hire payment with a guaranteed minimum rate (floor) ranging from $14,500 to $15,000 per day.
(4) First year charter rate of $15,000 per day. Second year charter rate based on the average of the AV4 BPI rates, as published daily by the Baltic Exchange for the preceding 15 days prior to hire payment with a guaranteed minimum rate (floor) of $14,000 per day and profit sharing arrangements.
(5) The vessels have not been delivered to charterers yet.
(6) Charter rate based on the average of the AV4 BPI rates, as published by the Baltic Exchange for the preceding 15 days prior to hire payment with a guaranteed minimum rate (floor) of $11,000 per day and profit sharing arrangements.
(7) These vessels were sold in 2007 and leased back on a bareboat charter through July 2015.
SIGNATURES
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: July 28, 2011
By:
/s/ Pavlos Kanellopoulos
Pavlos Kanellopoulos
Chief Financial Officer