Excel Maritime Reports Results for the Second Quarter and Six Month Period Ended June 30, 2012
(firmenpresse) - ATHENS, GREECE -- (Marketwire) -- 08/28/12 -- 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, 2012.
A reconciliation of the non-GAAP measures discussed above is included in a later section of this release.
In accordance with the $1.4 billion credit facility amendment reached in March 2012, we exercised our option and deferred the entire loan installments of $24.3 million each, originally due on April 2, 2012 and July 2, 2012, to the balloon payment of the facility in April 2016.
On May 7, 2012, we entered into separate sales agreements with each of Deutsche Bank Securities Inc. and Knight Capital Americas, L.P., as sales agents, under which we may sell an aggregate of up to $35.0 million in gross proceeds of our Class A common stock, par value $0.01, from time to time. (Please refer to our current report on Form 6-K filed with the SEC on May 7, 2012 for a detailed discussion of the foregoing program.) As of August 24, 2012, we sold 5,831,139 shares of our Class A common stock through the offering discussed above, raising net proceeds of $4.0 million, after deducting issuance costs of $0.3 million, including sales agents' commissions of 2.5% and other issuance expenses.
As of August 24, 2012, we have secured contract coverage for 100% of the available days of our Capesize vessels and 82% of the available days of our Kamsarmax/Panamax vessels for the current year ending December 31, 2012. With respect to the entire fleet, 83% of the available days of 2012 have been fixed, 21% of which are under contracts which offer an upside potential through profit sharing arrangements or index-linked structures and hedge against downside price risk through floor protection.
In May 2012, we entered into four new period time charter agreements as follows:
The M/V Grain Express (76,466 dwt; built in 2004) was fixed for 10-13 months at a gross daily rate of $11,000;
The M/V Iron Vassilis (82,257 dwt; built in 2006) was fixed for 10-13 months at a gross daily rate of $11,000;
The M/V Mairouli (53,206 dwt; built in 2005) was fixed for 4-6 months at a gross daily rate of $10,600;
The M/V Princess I (38,858 dwt; built in 1994) was fixed for 4-6 months at a gross daily rate of $9,000.
Pavlos Kanellopoulos, Chief Financial Officer of Excel, stated, "In the face of challenging conditions we are continuing our strategy of cost containment and disciplined chartering policies. Excel has taken proactive steps to address the weak market environment since the beginning of the year, first by agreeing with our lenders to defer installments and waive covenants on our existing credit facilities and more recently raising incremental capital to strengthen our balance sheet. Our industry is trying to cope with excess tonnage and increased uncertainty in the global economy. Unfortunately, so far we have not seen any significant increase in scrapping which would help moderate the pressure from vessel deliveries, leading to a challenging near term outlook for the markets that we service. We continue to believe a significant increase in vessel scrapping and restraint in vessel ordering would lead to a faster recovery in freight rates in the future.''
Excel reported voyage revenues for the second quarter of 2012 amounting to $63.1 million compared to $92.0 million for the same period in 2011, a decrease of approximately 31.4%.
Adjusted EBITDA for the second quarter of 2012 was $17.7 million compared to $44.0 million for the second quarter of 2011, a decrease of approximately 59.8%.
Net loss for the quarter amounted to $33.4 million, or $0.37 per weighted average basic and diluted share, compared to a net loss of $16.0 million, or $0.19 per weighted average basic and diluted share, in the second quarter of 2011.
The second quarter 2012 results include a non-cash unrealized gain on derivative financial instruments of $3.0 million compared to a non-cash unrealized loss on derivative financial instruments of $1.3 million in the corresponding period in 2011. In addition, the second quarter 2012 results include a non-cash loss of $1.0 million relating to the valuation of the warrants and the put option on the preferred shares under the back stop agreement ("Back Stop Agreement Valuation") entered into in connection with the amendment of our $1.4 billion credit facility earlier this year.
The above net results also include the amortization of a deferred asset for below market time charters that was recorded by Excel upon acquiring Quintana Maritime Limited ("Quintana") on April 15, 2008. This amortization resulted in income of $1.0 million and $0.9 million for the second quarter of 2012 and 2011, respectively. In addition, the second quarter 2011 results include a non-cash loss of $10.0 million relating to the amortization of a deferred liability for favorable time charters that was recorded when Excel acquired Quintana.
Adjusted net loss, excluding all the above items, for the second quarter of 2012 amounted to $36.4 million, or $0.41 per weighted average basic and diluted share, compared to an adjusted net loss, excluding all the above items, for the second quarter of 2011 of $5.6 million, or $0.07 per weighted average basic and diluted share.
The above adjusted net loss also includes the amortization of stock-based compensation expense of $1.0 million and $2.0 million for the quarters ended June 30, 2012 and 2011, respectively.
An average of 47.0 and 48.0 vessels were operated during the second quarter of 2012 and 2011, respectively, earning a blended average time charter equivalent rate of $12,871 and $18,932 per day, respectively.
A reconciliation of adjusted EBITDA to net loss, adjusted net loss to net loss, and adjusted losses per Share Basic and Diluted to losses per Share Basic and Diluted, as well as a calculation of the TCE, is provided in a later section of this press release.
Excel reported voyage revenues for the six months to June 30, 2012 amounting to $127.2 million as compared to $189.2 million for the same period in 2011, a decrease of approximately 32.8%.
Adjusted EBITDA for the period was $39.9 million compared to $92.0 million for the respective period of 2011, a decrease of approximately 56.6%.
Net loss for the six month period ended June 30, 2012 amounted to $70.0 million, or $0.79 per weighted average basic and diluted share, compared to a net loss of $17.0 million, or $0.20 per weighted average basic and diluted share, for the six month period ended June 30, 2011.
The results for the six month period ended June 30, 2012 include a non-cash unrealized gain on derivative financial instruments of $6.5 million compared to a non-cash unrealized gain on derivative financial instruments of $5.0 million in the corresponding period in 2011.
In addition, the results, for the six month period ended June 30, 2012, include a non-cash loss of $6.4 million relating to the Back Stop Agreement Valuation.
The above net results also include the amortization of a deferred asset for below market time charters that was recorded by Excel upon acquiring Quintana on April 15, 2008. This amortization resulted in income of $1.9 million and $1.7 million for the six-month periods ended June 30, 2012 and 2011, respectively. In addition, the results for the six month period ended June 30, 2011 include a non-cash loss of $19.8 million relating to the amortization of a deferred liability for favorable time charters that was recorded when Excel acquired Quintana and a non cash gain in connection with the sale of the M/V Marybelle amounting to $1.3 million.
Adjusted net loss, excluding all the above items, for the six month period ended June 30, 2012 would have amounted to $72.0 million, or $0.81 per weighted average basic and diluted share, compared to an adjusted net loss, excluding all the above items, for the six month period ended June 30, 2011 of $5.1 million, or $0.06 per weighted average basic and diluted share.
The above adjusted net results also include the amortization of stock based compensation expense of $1.6 million and $3.3 million, for the six month period ended June 30, 2012 and 2011, respectively.
An average of 47.0 and 48.2 vessels were operated during the six month period ended June 30, 2012 and 2011, respectively, earning a blended average time charter equivalent rate of $13,446 and $19,279 per day, respectively.
A reconciliation of adjusted EBITDA to net loss, adjusted net loss to net loss, and adjusted losses per Share Basic and Diluted to losses per Share Basic and Diluted, as well as a calculation of the TCE, is provided in a later section of this press release.
Tomorrow August 29, 2012 at 08:30 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). to the operator.
A telephonic replay of the conference call will be available until September 5, 2012 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#
There will also be a live, and then archived, webcast of the conference call, available through Excels' website (). Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Adjusted EBITDA represents net income/(loss) attributable to us plus net interest and finance costs, depreciation and taxes, eliminating the effect of 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/(loss) represents net income/(loss) attributable to us plus unrealized gains or losses from our derivative transactions, back stop agreement valuation losses, any gains or losses on sale of vessels and the elimination of the effect of deferred time charter assets and liabilities, all of which are significant non-cash items. Adjusted Earnings/(losses) per Share (basic and diluted) represents Adjusted Net Income/(loss) divided by the weighted average shares outstanding (basic and diluted).
These measures are "non-GAAP financial measures" and should not be considered to be substitutes for net income/(loss) or earnings/(losses) per share (basic and diluted), respectively, as reported under GAAP. Excel has included an adjusted net loss and adjusted losses per share (basic and diluted) calculation in this period in order to facilitate comparability between Excel's performance in the reported periods and its performance in prior periods.
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 a 71.4% interest, 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 .
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.
The following key indicators highlight the Company's financial and operating performance for the three and six months ended June 30, 2012 compared to the corresponding periods in the prior year.
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 formed part of our fleet during that period divided by the number of calendar days in that period.
We define these as the total days we possessed 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 specific period of time and affect both the amount of revenues and the amount of expenses that are recorded during that period.
These are the calendar days less the aggregate number of off-hire days associated with major repairs, dry dockings 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.
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.
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 financial performance used by 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.
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.
(1) Adjustment to Revenue from operations i.e. increases revenues
(1) The charter includes a 50% profit-sharing arrangement 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) The daily charter rate is calculated on the basis of the average of the AV4 BPI rates, as published on a daily basis by the Baltic Exchange in London during the 15 days preceding the payment of hire, with a guaranteed minimum daily rate (floor) of $14,000 and a 50% profit-sharing arrangement over the amount specified in each charter.
(4) The daily charter rate is calculated on the basis of the average of the AV4 BPI rates, as published on a daily basis by the Baltic Exchange in London during the 15 days preceding the payment of hire, with a guaranteed minimum daily rate (floor) ranging from $11,000 to $12,000 and a 50% profit-sharing arrangement over the amount specified in each charter.
(5) Indicates a vessel sold to its current owner in July 2007 and subsequently leased back to us under a bareboat charter expiring in July 2015.
(6) The daily charter rate during the first year of the charter is $12,750. Thereafter, the charter rate is calculated on the basis of the average of the AV4 BPI rates, as published on a daily basis by the Baltic Exchange in London during the 15 days preceding the payment of hire, with a guaranteed minimum daily rate (floor) of $11,750 and a 50% profit-sharing arrangement over the amount specified in the charter.
Nicolas Bornozis
President
Capital Link, Inc.
230 Park Avenue - Suite 1536
New York, NY 10169, USA
Tel: (212) 661-7566
Fax: (212) 661-7526
E-Mail:
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:
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Datum: 28.08.2012 - 14:05 Uhr
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