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Home  Top Story B Excel Maritime Reports Results for the Third Quarter and Nine-Month Period Ended September 30, 2009 |
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Excel Maritime Reports Results for the Third Quarter and Nine-Month Period Ended September 30, 2009 |
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Wednesday, 04 November 2009 |
 Excel Maritime Carriers Ltd, an owner and operator of dry bulk carriers and a leading 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, 2009.
Third Quarter 2009 Highlights:
-- Revenue from operations for the quarter amounted to $174.4 million as
compared to $231.6 million in the third quarter of 2008.
-- Net profit for the quarter was $62.0 million or $0.79 per weighted
average diluted share compared to $117.6 million or $2.66 per weighted
average diluted share in the third quarter of 2008. The third quarter 2009
results include a non-cash unrealized interest-rate swap loss of $1.8
million compared to an unrealized interest-rate swap loss of $6.7 million
in the corresponding period in 2008. Swap gains and losses are recorded in
income as they do not meet the criteria for hedge accounting. Net income,
excluding the above item, for the third quarter of 2009 would amount to
$63.8 million or $0.81 per weighted average diluted share compared to
respective income for the third quarter of 2008 of $124.3 million or $2.81
per weighted average diluted share.
-- Adjusted EBITDA for the third quarter of 2009 was $59.1 million
compared to $110.1 million for the third quarter of 2008. A reconciliation
of adjusted EBITDA to Net Income is included in a subsequent section of
this release.
-- An average of 47 vessels were operated during the third quarters of
2009 and 2008 earning a blended average time charter equivalent rate of
$21,912 and $33,806 per day, respectively.
Nine Months 2009 Highlights:
-- Revenue from operations for the nine-month period ended September 30,
2009 increased to $570.4 million from $506.9 million in the nine-month
period ended September 30, 2008.
-- Net profit for the nine-month period ended September 30, 2009 was
$258.0 million or $3.91 per weighted average diluted share compared to
$276.2 million or $7.97 per weighted average diluted share in the
respective period of 2008. The nine months 2009 results include a non-cash
unrealized interest-rate swap gain of $19.2 million compared to an
unrealized interest-rate swap gain of $14.4 million in the corresponding
period in 2008. Net income for 2009 includes also a non-cash item of $0.1
million relating to the resulting gain from the sale of vessel Swift. Net
income, excluding the above items, would amount to $238.8 million or $3.62
per weighted average diluted share for the nine month period ended
September 30, 2009 compared to $261.8 million or $7.55 per weighted average
diluted share for the respective period in 2008.
-- Adjusted EBITDA for the nine month period ended September 30, 2009 was
$169.7 million compared to $253.1 million for the respective period of
2008. A reconciliation of adjusted EBITDA to Net Income is included in a
subsequent section of this release.
Third Quarter 2009 Corporate Developments
On August 11, 2009, we completed our offering to the public of
6,000,000 shares of our Class A common stock. The Offered Shares were
priced at $8.00 per share gross of underwriters' commissions and
expenses and the total net proceeds to us from the offering were
approximately $45.2 million. We used the net offering proceeds for
repayment of debt as well as to build up our committed capital
expenditure reserve account, which we may utilize for future capital
expenditure requirements.
Recent Developments
We recently reached agreements with our joint venture partners aimed to
consolidate and simplify our new buildings program. These agreements,
as detailed below, provide us with direct control of one Capesize
vessel and majority control of another one:
-- On October 27, 2009 we completed an agreement with our joint venture
partners for the transfer of our membership interests in certain
consolidated joint venture companies under which we agreed to sell our 50%
membership interest in Lillie ShipCo LLC for a consideration of $1.2
million and the transfer by one of the joint venture partners to us of its
50% membership interest in Hope ShipCo LLC. In addition, in the context of
the above agreement, one of the joint venture partners sold its 28.6%
membership interest in Christine ShipCo LLC to us for a consideration of
$2.8 million. Following the completion of the transaction, we became 100%
owner of Hope ShipCo LLC and increased our interest in Christine ShipCo LLC
to 71.4%. Both companies will continue being consolidated in our financial
statements, while Lillie ShipCo will be deconsolidated as of the date we
ceased to have a financial interest in it. We are currently evaluating the
effect of the above transaction in our consolidated financial statements
for the fourth quarter of 2009.
-- On October 27, 2009, Hope ShipCo LLC and Christine ShipCo LLC loan
agreements were amended to reflect the changes in the ownership of the
companies discussed above.
Vessels new fixtures
On October 15, 2009 the M/V Isminaki, a Panamax vessel of 74,577 dwt
built in 1998, was fixed under a new time charter for a period of 4-6
months at a daily rate of $24,000.
On October 20, 2009 the M/V Coal Age, a Panamax vessel of 72,824 dwt
built in 1997, was fixed under a new time charter for a period of 11-13
months at a daily rate of $21,250.
On October 21, 2009 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 4-6
months at a daily rate of $22,250.
Time Charter Coverage
We have secured under time charter employment 69% of our operating days for the fourth quarter of 2009 and 54% for 2010.
Management Commentary:
Lefteris Papatrifon, Chief Financial Officer of Excel, stated, "For one
more quarter, we have been able to deliver solid operating results. Our
chartering strategy has allowed us, despite the prevailing rate
volatility in our market, to generate stable and slightly increased
cash flows on a quarter over quarter basis, as demonstrated by the
Adjusted EBITDA of $59.1 million earned in the third quarter of this
year.
During the third quarter, we also took proactive measures in
strengthening and simplifying our balance sheet. The capital increase
concluded in early August has allowed us to further deleverage and has
also provided equity financing for our 2010 new building commitments.
Additionally, the agreements reached with our joint venture partners
enable us to consolidate and simplify our new buildings program.
At the same time, we have continued taking advantage of rate
strengthening opportunities by fixing vessels on medium to long term
charters at attractive rates, allowing us to enhance the stability of
cash flows."
Third Quarter 2009 Results:
The Company reported net profit for the quarter of $62.0 million or
$0.79 per weighted average diluted share as compared to net income of
$117.6 million or $2.66 per weighted average diluted share for the
third quarter of 2008.
The third quarter 2009 results include a non-cash unrealized
interest-rate swap loss of $1.8 million compared to an unrealized
interest-rate swap loss of $6.7 million in the corresponding period in
2008. Net income, excluding the above items, for the third quarter of
2009 would amount to $63.8 million or $0.81 per weighted average
diluted share compared to respective income for the third quarter of
2008 of $124.3 million or $2.81 per weighted average diluted share.
Included in the above adjusted net income are also the amortization of
favorable and unfavorable time charters that were fair valued upon
acquiring Quintana Maritime Limited ("Quintana") on April 15, 2008
amounting to a net income of $66.4 million ($0.84 per weighted average
diluted share) and $71.8 million ($1.62 per weighted average diluted
share) for the third quarters of 2009 and 2008, respectively, and the
amortization of stock based compensation expense of $8.9 million ($0.11
per weighted average diluted share) and $4.0 million ($0.09 per
weighted average diluted share), for the three months ended September
30, 2009 and 2008, respectively.
In addition, effective January 1, 2009, we changed the method of
accounting for dry-docking and special survey costs from the deferral
method to the expense as incurred method, as well as, adopted FASB
Staff Position APB 14-1 "Accounting for Convertible Debt Instruments
That May Be Settled in Cash upon Conversion" that changed the method of
accounting for our Convertible Notes. Please refer to a subsequent
section of this Press Release for a further discussion on these
accounting changes.
Such changes were effected retrospectively to all periods presented and
their effect in the three months ended September 30, 2009 was an
increase in net income of approximately $1.0 million or $0.01 per
weighted average diluted share in relation to the change in dry-dock
and special survey policy and a decrease in net income of $1.5 million
or $0.02 per weighted average diluted share in relation to the change
in the accounting for the convertible notes.
Revenues for the third quarter of 2009 amounted to $174.4 million as
compared to $231.6 million for the same period in 2008, a decrease of
approximately 24.7%.
Included in revenues for the third quarters of 2009 and 2008 are $76.4
million and $81.9 million, respectively of non-cash revenues relating
to the amortization of unfavorable time charters that were fair valued
upon acquiring Quintana.
An average of 47 vessels were operated during the third quarters of
2009 and 2008 earning a blended average time charter equivalent rate of
$21,912 and $33,806 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 2009 was $59.1 million
compared to $110.1 million for the third quarter of 2008, a decrease of
approximately 46.3%. Please refer to a subsequent section of this Press
Release for a reconciliation of adjusted EBITDA to Net Income.
Nine Months to September 30, 2009:
The Company reported net profit for the period of $258.0 million or
$3.91 per weighted average diluted share as compared to net income of
$276.2 million or $7.97 per weighted average diluted share for the
respective period of 2008.
The nine months 2009 results include a non-cash unrealized
interest-rate swap gain of $19.2 million compared to an unrealized
interest-rate swap gain of $14.4 million in the corresponding period in
2008. Net income for 2009 includes also a non-cash item of $0.1 million
relating to the resulting gain from the sale of vessel Swift.
Net income, excluding the above items, would amount to $238.8 million
or $3.62 per weighted average diluted share for the nine month period
ended September 30, 2009 compared to $261.8 million or $7.55 per
weighted average diluted share for the respective period in 2008.
Included in the above adjusted net income are also the amortization of
favorable and unfavorable time charters discussed above and amounting
to a net income of $251.0 million ($3.8 per weighted average diluted
share) and $136.8 million ($3.9 per weighted average diluted share) for
the nine-month periods ended September 30, 2009 and 2008, respectively
and the amortization of stock based compensation expense of $14.3
million ($0.22 per weighted average diluted share) and $6.7 million
($0.19 per weighted average diluted share), respectively.
The effect of the accounting changes discussed above in the nine-month
period ended September 30, 2009 was a decrease in net income of
approximately $2.4 million or $0.04 per weighted average diluted share
due to the change in dry-dock and special survey policy and $4.3
million or $0.07 per weighted average diluted share due to the change
in the accounting for the convertible notes.
Revenues for the period amounted to $570.4 million as compared to
$506.9 million for the same period in 2008, an increase of
approximately 12.5%.
Included in revenues for the nine-month periods ended September 30,
2009 and 2008 are $280.9 million and $155.2 million, respectively of
non-cash revenues relating to the amortization of unfavorable time
charters that were fair valued upon acquiring Quintana.
An average of 47.3 vessels were operated during the nine-month period
ended September 30, 2009, earning a blended average time charter
equivalent (TCE) rate of $21,676 per day compared to $34,913 per day
for the nine-months period ended September 30, 2008 earned by an
average of 35.8 vessels. Please refer to a subsequent section of this
Press Release for a calculation of the TCE.
Adjusted EBITDA for the period was $169.7 million compared to $253.1
million for the respective period of 2008, a decrease of approximately
33.0%. Please refer to a subsequent section of this Press Release for a
reconciliation of adjusted EBITDA to Net Income.
Source: Excel Maritime Carriers
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