6-K 1 f102511exm6k.htm Converted by EDGARwiz

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 October 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 October 25, 2011: Excel Maritime Reports Results for the Third Quarter and Nine Month period ended September 30, 2011.



Exhibit 1

[f102511exm6k002.gif]

Excel Maritime Reports Results for the Third Quarter and Nine Month period ended September 30, 2011


ATHENS, GREECE – October 25, 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 three-month and nine-month periods ended September 30, 2011.  


Third Quarter Highlights & Recent Developments:


·

Operating profitable for the quarter with Adjusted EBITDA at $36.2 million and Operating Free Cash Flow at $24.0 million;


·

Further increase in charter coverage to 49% of available vessel days for the next 12 months to September 2012;


·

Sale of our oldest vessel, 1985 Handymax MV Lady, on profitable terms.


A reconciliation of non-GAAP measures discussed herein is included in a later section of this release.


Management Commentary:


Pavlos Kanellopoulos, Chief Financial Officer of Excel, stated, “Excel recorded results with positive operating free cash flow generation. Results were negatively impacted by weaker market environment during the third quarter of 2011, as daily charter rates and vessel values were adversely affected by the deliveries of newbuilds which peaked earlier this year. Since June, Excel has proactively negotiated and agreed with its lenders a relaxation of its financial covenants, and during this quarter Excel increased both its twelve-month forward charter coverage to approximately 50% and its liquidity buffer to $134 million.


Despite the near-term challenges, we remain positive on the longer-term outlook for the emerging markets that we predominantly serve. We believe that the size and quality of our fleet, our track record of superior operational performance, and the continuous strengthening of our balance sheet positions us well for when rates eventually rebound.’’



Selected Financial Data


 


Three-Months ended

September 30,

Nine-Months ended

September 30,

 

2010

2011

2010

2011

 

(amounts in millions of U.S Dollars, except per share data and daily TCE)

Voyage Revenues

$104.7

$82.3

$316.0

$271.5

Net Income (Loss)

$48.0

($26.8)

$194.2

($43.8)

Adjusted Net Income (Loss)

$9.5

($21.2)

$21.6

($26.3)

Earnings (losses) per Share (Diluted)

$0.57

($0.32)

$2.36

($0.52)

Adjusted Earnings (losses) per Share (Diluted)

$0.11

($0.25)

$0.26

($0.31)

Adjusted EBITDA

$62.3

$36.2

$184.3

$128.3

Time Charter Equivalent (TCE) per day

$22,848

$16,864

$23,768

$18,480


A reconciliation of the non-GAAP measures discussed above is included in a later section of this release.


Third Quarter 2011 Results


Excel reported voyage revenues of $82.3 million for the third quarter of 2011 compared to $104.7 million for the same period in 2010, a decrease of approximately 21.4%.


Adjusted EBITDA for the third quarter of 2011 was $36.2 million compared to $62.3 million for the third quarter of 2010, a decrease of approximately 41.9%.


Net loss for the quarter amounted to $26.8 million or $0.32 per weighted average diluted share compared to a net profit of $48.0 million or $0.57 per weighted average diluted share in the third quarter of 2010.  


The third quarter 2011 results include a non-cash unrealized loss on derivative financial instruments of $1.6 million compared to a non-cash unrealized loss on derivative financial instruments of $4.1 million in the corresponding period in 2010. In addition, the results for the three-month period ended September 30, 2011 include a non-cash gain of $5.1 million realized in connection with the sale of the M/V Lady.


The above net results include also the amortization of favorable and unfavorable time charters that were recorded upon acquiring Quintana Maritime Limited (“Quintana”) on April 15, 2008 amounting to a net loss of $9.2 million and a net gain of $42.5 million for the third quarter of 2011 and 2010, respectively.


There was an adjusted net loss, excluding all the above items, of $21.2 million or $0.25 per weighted average diluted share for the third quarter of 2011 compared to an adjusted net income, excluding all the above items, of $9.5 million or $0.11 per weighted average diluted share for the same quarter of 2010.


The above adjusted net results also include the amortization of stock based compensation expense of $4.6 million and $5.5 million, for the quarter ended September 30, 2011 and 2010, respectively.

An average of 47.4 and 48 vessels were operated during the third quarter of 2011 and 2010, respectively, earning a blended average time charter equivalent rate of $16,864 and $22,848 per day, respectively.  

A reconciliation of adjusted EBITDA to net income, adjusted net income to net income and Adjusted Earnings (losses) per Share (Diluted) to Earnings (losses) per Share (Diluted) as well as a calculation of the TCE is provided in a later section of this press release.

Nine Months Ended  September 30, 2011 Results


Excel reported voyage revenues of $271.5 million for the nine months ended September 30, 2011 compared to $316.0 million for the same period in 2010, a decrease of approximately 14.1%.


Adjusted EBITDA for the period was $128.3 million compared to $184.3 million for the respective period of 2010, a decrease of approximately 30.4%.


There was a net loss of $43.8 million or $0.52 per weighted average diluted share in the nine months ended September 30, 2011 compared to a net profit of $194.2 million or $2.36 per weighted average diluted share in the nine months ended September 30, 2010.

 

The results for the nine month period ended September 30, 2011 include a non-cash unrealized gain on derivative financial instruments of $3.4 million compared to a non-cash unrealized loss on derivative financial instruments of $8.8 million in the corresponding period in 2010. In addition, the results for the nine month period ended September 30, 2011 include a non-cash gain of $6.4 million realized in connection with the sale of the M/V Marybelle and the M/V Lady.


The above net results include also the amortization of favorable and unfavorable time charters that were recorded upon acquiring Quintana Maritime Limited (“Quintana”) on April 15, 2008 amounting to a net loss of $27.3 million and a net gain of $181.5 million for the nine month periods ended September 30, 2011 and 2010, respectively.


There was an adjusted net loss, excluding all the above items, of $26.3 million or $0.31 per weighted average diluted share for the nine-month period ended September 30, 2011 compared to an adjusted net income, excluding all the above items, of $21.6 million or $0.26 per weighted average diluted share for the nine-month period ended September 30, 2010.


The above adjusted net results also include the amortization of stock based compensation expense of $7.9 million and $7.4 million, for the nine months ended September 30, 2011 and 2010, respectively.


An average of 47.9 and 47.6 vessels were operated during the nine months ended September 30, 2011 and 2010, respectively, earning a blended average time charter equivalent rate of $18,480 and $23,768 per day, respectively.  


A reconciliation of adjusted EBITDA to net income, adjusted net income to net income and Adjusted Earnings (losses) per Share (Diluted) to Earnings (losses) per Share (Diluted) as well as a calculation of the TCE is provided in a later section of this press release.



Recent Vessels’ Fixtures


Fleet Coverage, as of October 21, 2011

Full Year '11

12 mos forward

Capesize Fleet

96%

79%

Kamsarmax / Panamax Fleet

92%

48%

Fleet - Fixed Charters

94%

49%

% of Fixed Charters with upside participation

29%

42%


As of today, we have secured contract coverage for 96% and 92%, respectively, of the available days of our Capesize vessels and Kamsarmax/Panamax vessels for the year ending December 31, 2011. With respect to the entire fleet, 94% of the available days of 2011 have been fixed, 29% of which 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 October 2011, the M/V Iron Manolis (82,269 dwt, built in 2007), M/V Iron Anne (82,220 dwt, built in 2006) and M/V Pascha (82,574 dwt, built in 2006) were fixed under separate time charters for a period of 11-14 months at a daily gross rate of $14,000. These charters are expected to commence in November 2011.


In September 2011, the M/V July M (55,567 dwt, built in 2005), was fixed under a time charter for a period of 4-6 months at a daily gross rate of $14,500.


In July  2011, the M/V Iron Knight (76,429 dwt, built in 2004) and M/V Iron Bradyn (82,769 dwt, built in 2005), were fixed under separate time charters for a period of 14-16 months at a daily gross rate of $12,250 and a period of 12-16 months at a daily gross rate of $12,000 respectively.


Fleet developments


On August 9, 2011, the M/V Lady (41,090 dwt, built in 1985) was delivered to her new owners and we recognized a non-cash gain of approximately $5.1 million as of the same date.


Conference Call Details:


Tomorrow October 26, 2011 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). Please quote “Excel Maritime” to the operator.


A telephonic replay of the conference call will be available until November 2, 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 -










EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES

CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS

FOR THE QUARTER ENDED SEPTEMBER 30, 2010 AND 2011

(In thousands of U.S. Dollars, except for share and per share data)



 

 

Three-month period

Ended  September 30,

 

 

2010

 

2011

REVENUES:

 

 

 

 

Voyage revenues

$

104,713

$

82,256

Time Charter fair value amortization

 

52,604

 

897

Revenue from managing related party vessels

 

105

 

-

Revenue from operations

 

157,422

 

83,153

 

 

 

 

 

 

EXPENSES:

 

 

 

 

 

Voyage expenses

 

6,292

 

9,655

 

Charter hire expense

 

8,275

 

8,275

 

Charter hire amortization

 

10,068

 

10,068

 

Commissions to related parties

 

723

 

896

 

Vessel operating expenses

 

21,364

 

21,251

 

Depreciation expense

 

31,819

 

32,319

 

Dry-docking and special survey cost

 

-

 

4,406

 

General and administrative expenses

 

10,969

 

10,661

 

 

 

89,510

 

97,531

 

 

 

 

 

 

 

Gain on sale of vessel

 

-

 

5,158

 

 

 

 

 

 

 

Income (loss) from operations

 

67,912

 

(9,220)

 

 

 

 

 

 

OTHER INCOME (EXPENSES):

 

 

 

 

 

Interest and finance costs

 

(8,435)

 

(10,498)

 

Interest income

 

272

 

420

 

Losses on derivative financial instruments

 

(11,207)

 

(7,585)

 

Foreign exchange gains (losses)

 

(295)

 

101

 

Other, net

 

189

 

330

 

Total other expenses, net

 

(19,476)

 

(17,232)

 

 

 

 

 

 

Net income (loss) before taxes and loss assumed (income earned) by non controlling interest

 


48,436

 


(26,452)

 

 

 

 

 

US Source Income taxes

 

(86)

 

(35)

 

 

 

 

 

Net income (loss)

 

48,350

 

(26,487)

 

 

 

 

 

 

Income earned by non-controlling interest

 

(352)

 

(292)

 

 

 

 

 

Net income (loss) attributable to Excel Maritime Carriers Ltd.

$


47,998


$


(26,779)

 

 

 

 

 

Earnings (losses)  per common  share, basic

$

0.59

$

(0.32)

Weighted average number of shares, basic

 

81,077,800

 

84,932,666

Earnings (losses) per common share, diluted

$

0.57

$

(0.32)

Weighted average number of shares, diluted

 

83,791,670

 

84,932,666









EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES

CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS

FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2010 AND 2011

(In thousands of U.S. Dollars, except for share and per share data)


 

 

Nine-month period

Ended  September 30,

 

 

2010

 

2011

REVENUES:

 

 

 

 

Voyage revenues

$

315,965

$

271,496

Time Charter fair value amortization

 

211,346

 

2,578

Revenue from managing related party vessels

 

315

 

17

Revenue from operations

 

527,626

 

274,091

 

 

 

 

 

 

EXPENSES:

 

 

 

 

 

Voyage expenses

 

19,558

 

31,212

 

Charter hire expense

 

24,556

 

24,556

 

Charter hire amortization

 

29,876

 

29,876

 

Commissions to related parties

 

2,231

 

2,988

 

Vessel operating expenses

 

64,495

 

64,126

 

Depreciation expense

 

93,462

 

95,985

 

Dry-docking and special survey cost

 

9,520

 

8,683

 

General and administrative expenses

 

27,412

 

27,724

 

 

 

271,110

 

285,150

 

 

 

 

 

 

 

Gain on sale of vessels

 

-

 

6,432

 

 

 

 

 

 

 

Income (loss) from operations

 

256,516

 

(4,627)

 

 

 

 

 

 

OTHER INCOME (EXPENSES):

 

 

 

 

 

Interest and finance costs

 

(30,379)

 

(25,739)

 

Interest income

 

1,056

 

1,244

 

Losses on derivative financial instruments

 

(31,198)

 

(13,595)

 

Foreign exchange losses

 

(43)

 

(243)

 

Other, net

 

(472)

 

551

 

Total other expenses, net

 

(61,036)

 

(37,782)

 

 

 

 

 

 

Net income (loss) before taxes and loss assumed (income earned) by non controlling interest

 


195,480

 


(42,409)

 

 

 

 

 

US Source Income taxes

 

(658)

 

(539)

 

 

 

 

 

Net income (loss)

 

194,822

 

(42,948)

 

 

 

 

 

 

Income earned by non-controlling interest

 

(609)

 

(852)

 

 

 

 

 

Net income (loss) attributable to Excel Maritime Carriers Ltd.

$


194,213


$


(43,800)

 

 

 

 

 

Earnings (losses)  per common  share, basic

$

2.42

$

(0.52)

Weighted average number of shares, basic

 

80,152,297

 

84,135,854

Earnings (losses) per common share, diluted

$

2.36

$

(0.52)

Weighted average number of shares, diluted

 

82,462,602

 

84,135,854










EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AT DECEMBER 31, 2010 AND SEPTEMBER 30, 2011 (UNAUDITED)

(In thousands of U.S. Dollars)


ASSETS

 

December 31, 2010

 

September 30,

2011

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

$

65,917

$

70,289

 

Restricted cash

 

6,721

 

6,114

 

Accounts receivable

 

7,961

 

8,374

 

Other current assets

 

16,602

 

11,671

 

Total current assets

 

97,201

 

96,448

 

 

 

 

 

 

FIXED ASSETS:

 

 

 

 

 

Vessels, net

 

2,622,631

 

2,611,192

 

Advances for vessels under construction

 

76,585

 

-

 

Office furniture and equipment, net

 

1,147

 

1,111

 

Total fixed assets, net

 

2,700,363

 

2,612,303

 

 

 

 

 

 

OTHER NON CURRENT ASSETS:

 

 

 

 

 

Time charters acquired, net

 

184,366

 

154,490

 

Derivative financial instruments

 

923

 

-

 

Restricted cash

 

48,967

 

57,750

 

 

 

 

 

 

 

      Total assets

$

3,031,820

$

2,920,991

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Current portion of long-term debt, net of deferred financing fees

$

107,369

$

103,731

 

Accounts payable

 

11,101

 

13,075

 

Other current liabilities

 

32,322

 

34,662

 

Derivative financial instruments

 

21,945

 

21,137

 

 Total current liabilities

 

172,737

 

172,605

 

 

 

 

 

 

Long-term debt, net of current portion and net of deferred financing fees

 

1,046,672

 

976,962

Time charters acquired, net

 

18,108

 

15,530

Derivative financial instruments

 

30,155

 

30,483

 

 

 

 

 

     Total liabilities

 

1,267,672

 

1,195,580

 

 

 

 

 

Commitments and contingencies

 

-

 

-

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

Preferred stock

 

-

 

-

 

Common stock

 

851

 

857

 

Additional paid-in capital

 

1,061,134

 

1,069,045

 

Other Comprehensive Income (Loss)

 

211

 

(3,495)

 

Retained earnings

 

691,674

 

647,874

 

Less: Treasury stock

 

(189)

 

(189)

 

Excel Maritime Carriers Ltd. Stockholders’ equity

 

1,753,681

 

1,714,092

 

Non-controlling interests

 

10,467

 

11,319

 

Total Stockholders’ Equity

 

1,764,148

 

1,725,411

 

 

 

 

 

 

 

      Total liabilities and stockholders’ equity

$

3,031,820

$

2,920,991

 

 

 

 

 

 






EXCEL MARITIME CARRIERS LTD AND SUBSIDIARIES

CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2010 AND 2011

(In thousands of U.S. Dollars)


 

 

 

 

Nine-month period

ended September 30,

 

 

 

 

2010

 

2011

Cash Flows from Operating Activities:

 

 

 

 

 

Net income (loss)

$

194,822

$

(42,948)

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities

 


(64,131)

 

129,391

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Operating assets

 

(911)

 

4,665

 

 

Operating liabilities

 

(1,413)

 

4,314

Net Cash provided by Operating Activities

$

128,367

$

95,422

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

Advances for vessels under construction

 

(76,267)

 

(18,267)

 

 

Additions to vessel cost

 

(13)

 

(25)

 

 

Additions to office furniture and equipment

 

(83)

 

(290)

 

 

Proceeds from sale of vessels

 

-

 

17,089

Net cash used in Investing Activities

$

(76,363)

$

(1,493)

 

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

(Increase) decrease in restricted cash

 

15,749

 

(8,176)

 

 

Proceeds from long-term debt

 

66,967

 

27,100

 

 

Repayment of long-term debt

 

(157,765)

 

(107,593)

 

 

Payment of financing costs

 

(802)

 

(888)

 

 

Issuance of common stock-related party

 

4,933

 

-

 

 

Capital contributions from non-controlling interest owners

 

4,174

 

-

Net cash used in Financing Activities

$

(66,744)

$

(89,557)

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

(14,740)

 

4,372

Cash and cash equivalents at beginning of period

 

100,098

 

65,917

Cash and cash equivalents at end of the period

$

85,358

$

70,289

 

 

 

 

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

Interest payments

$

25,251

$

14,232

 

 

U.S Source Income taxes

 

746

 

577








Adjusted EBITDA Reconciliation

(all amounts in thousands of U.S. Dollars)

 

 

Three-month period ended  September 30,

 

Nine-month period

 ended September 30,

 

 

2010

 

2011

 

2010

 

2011

Net income (loss)

$

47,998

$

(26,779)

$

194,213

$

(43,800)

Interest and finance costs, net (1)

 

15,307

 

16,094

 

51,695

 

41,500

Depreciation

 

31,819

 

32,319

 

93,462

 

95,985

Dry-dock and special survey cost

 

-

 

4,406

 

9,520

 

8,683

Unrealized derivative financial instruments (gain) loss

 


4,063

 


1,569

 


8,826

 


(3,410)

Amortization of T/C fair values (2)

 

(42,536)

 

9,171

 

(181,470)

 

27,298

Stock based compensation

 

5,529

 

4,587

 

7,400

 

7,917

Gain on sale of vessels

 

-

 

(5,158)

 

-

 

(6,432)

Taxes

 

86

 

35

 

658

 

539

Adjusted EBITDA

$

62,266

$

36,244

$

184,304

$

128,280


(1) Includes derivative financial instruments paid and received

(2) Analysis:

 

 

Three-month period ended  September 30,

 

Nine-month period

 ended September 30,

 

 

2010

 

2011

 

2010

 

2011

Non-cash amortization of unfavorable time charters in revenue


$


(52,604)


$


(897)


$


(184,420)


$


(2,578)

Non-cash accelerated amortization of M/V Iron Miner time charter fair value due to charter termination

 



-

 



-

 



(26,926)

 



-

Non-cash amortization of favorable time charters in charter hire expense

 


10,068

 


10,068

 


29,876

 


29,876

 

$

(42,536)

$

9,171

$

(181,470)

$

27,298


Reconciliation of Net Income (loss) to Adjusted Net Income (loss)

(all amounts in thousands of U.S. Dollars)

 

 

Three-month period ended  September 30,

 

Nine-month period

 ended September 30,

 

 

2010

 

2011

 

2010

 

2011

Net income (loss)

$

47,998

$

(26,779)

$

194,213

$

(43,800)

Unrealized derivative financial instruments (gain) loss

 


4,063

 


1,569

 


8,826

 


(3,410)

Gain on sale of vessels

 

-

 

(5,158)

 

-

 

(6,432)

Amortization of T/C fair values

 

(42,536)

 

9,171

 

(181,470)

 

27,298

Adjusted Net income (loss)

$

9,525

$

(21,197)

$

21,569

$

(26,344)


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  September 30,

 

Nine-month period

 ended September 30,

 

 

2010

 

2011

 

2010

 

2011

Earnings (losses) per Share (Diluted)

$

0.57

$

(0.32)

$

2.36

$

(0.52)

Unrealized derivative financial instruments (gain) loss

 


0.05

 


0.02

 


0.1

 


(0.03)

Gain on sale of vessels

 

-

 

(0.06)

 

-

 

(0.08)

Amortization of T/C fair values

 

(0.51)

 

0.11

 

(2.2)

 

0.32

 

Adjusted Earnings per Share (Diluted)

$

0.11

$

(0.25)

$

0.26

$

(0.31)

 

 



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 the elimination of 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 to be 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, one of which, a Capesize vessel, is owned by a joint venture in which Excel holds 71.4%, and, together with seven Panamax vessels under bareboat charters, operates 47 vessels (seven Capesize, 14 Kamsarmax, 21 Panamax, two Supramax and three Handymax vessels) with a total carrying capacity of approximately 4.1 million DWT.  


Excel’s Class A common shares have been listed since September 15, 2005 on the New York Stock Exchange (NYSE) under the symbol EXM and, prior to that date, were listed on the American Stock Exchange (AMEX) since 1998. For more information about Excel, please go to our corporate website www.excelmaritime.com.


Forward-Looking Statement


This press release contains forward-looking statements (as defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. 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 new  time charters.


Words such as “will,” “should,” “expect,” “intend,”“plan,” “believe,” “anticipate,” “hope,” “estimate,” and variations of such words and similar expressions, which are predictions of, or indicate future events and future trends, which do not relate to historical matters, 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. Shareholders and prospective investors are cautioned not to place undue reliance on these forward-looking statements. 


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 (and from past results, performance and achievements). Factors that could cause actual results to differ materially include, but are not limited to,  changes in  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 U.S. Securities and Exchange Commission. These forward-looking statements are made as of the date hereof and are not intended to give any assurance as to future results. Excel expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein, whether to reflect new information, changes in events, conditions or circumstances on which such statements are based, or otherwise.


Contacts:


 

 

Investor Relations / Financial Media:

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: 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 nine months, respectively, ended September 30, 2011 compared to the corresponding periods in the prior year.



Vessel Employment

(In U.S. Dollars per day, except for days and utilization)

 

 

Three- month period ended September 30,

 

Nine- month period ended September 30,

 

 

2010

2011

 

2010

2011

Calendar days

 

4,416

4,364

 

12,985

13,083

Available days

 

4,276

4,252

 

12,377

12,841

Utilization

 

96.8%

97.4%

 

95.3%

98.2%

Time charter equivalent rate

 

$22,848

$16,864

 

$23,768

$18,480

Vessel operating expenses

 

$(4,838)

$(4,870)

 

$(4,967)

$(4,902)

Net operating cash flows before G&A expenses

 

$18,010

$11,994

 

$18,801

$13,578






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 formed  part of our fleet during that period divided by the number of calendar days in that period.


Total calendar days: 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.


Available days: 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.


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 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.


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 September 30,

 

For the nine-month period ended September 30,

 

 

2010

 

2011

 

2010

 

2011

Voyage revenues

$

104,713

$

82,256

$

315,965

$

271,496

Voyage expenses

 

(7,015)

 

(10,551)

 

(21,789)

 

(34,200)

Total revenue, net of voyage expenses


$


97,698


$


71,705


$


294,176


$


237,296

Total available days

 

4,276

 

4,252

 

12,377

 

12,841

Daily Time charter equivalent

$

22,848

$

16,864

$

23,768

$

18,480






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.




Expected Amortization Schedule for Fair Valued Time Charters for Next Year

(in USD millions)

 

4Q’11

1Q’12

2Q’12

3Q’12

 

Total

 

 

 

 

 

 

 

 

Amortization of unfavorable time charters (1)

 

$0.9

$0.9

$0.9

$0.9

 

$3.6

Amortization of favorable time charters (2)

 

$(10.1)

$(10.1)

$(10.1)

$(10.0)

 

$(40.4)


(1)

Adjustment to revenue from operations i.e. increases in revenues

(2)

Adjustment to charter hire expenses i.e. increases in charter hire expenses



Fleet List as of October 21st, 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

 

Nov 2015

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

      $14,000

 

Dec 2012

9

Iron Brooke(4)

82,594

2007

Fixed

      $14,500

(floor)

Dec 2011

10

Iron Lindrew(4)

82,598

2007

Fixed

     $14,500

(floor)

Jan 2012

11

Pascha (3)

82,574

2006

 

$14,000

 

Nov 2012

12

Coal Gypsy

82,221

2006

Fixed

$24,000

 

Dec 2011

13

Iron Anne(3)

82,220

2006

Fixed

$14,000

 

Dec 2012

14

Iron Vassilis

82,257

2006

Fixed

$14,000

 

Aug 2012

15

Iron Bill (4)

82,187

2006

Fixed

     $14,500

(floor)

Jun 2012

16

Ore Hansa(4)

82,209

2006

Fixed

      $15,000

(floor)

Feb 2012

17

Iron Kalypso(4)

82,224

2006

Fixed

      $15,000

(floor)

Feb 2012

18

Iron Fuzeyya(4)

82,209

2006

Fixed

      $15,000

(floor)

Jan 2012

19

Santa Barbara(5)

82,266

2006

Fixed

      $15,000

(year 1)

Jun 2013

20

Coal Hunter(5)

82,298

2006

Fixed

      $15,000

(year 1)

Jun 2013

21

Iron Bradyn

82,769

2005

Fixed

$12,000

 

Nov 2012

 

Total Kamsarmax (14)

1,152,895

 

 

 

 

 

22

Grain Harvester

76,417

2004

Fixed

$15,000

 

Dec 2011

23

Grain Express

76,466

2004

Fixed

$24,000

 

Jan 2012

24

Iron Knight(3)

76,429

2004

Fixed

$12,250

 

Feb 2013

25

Coal Pride

72,493

1999

Fixed

$16,750

 

Apr 2012

26

Isminaki(6)

74,577

1998

Fixed

      $11,000

(floor)

Nov 2012

27

Angela Star(6)

73,798

1998

Fixed

      $11,000

(floor)

Nov 2012

28

Elinakos

73,751

1997

Fixed

$14,600

 

Nov 2011

29

Happy Day

71,694

1997

Fixed

$13,000

 

Aug 2012

30

Iron Man (7)

72,861

1997

Spot

 

 

 

31

Coal Age (7)

72,824

1997

Spot

 

 

 

32

Fearless I (7)

73,427

1997

Fixed

$15,000

 

Apr 2012

33

Barbara (7)

73,307

1997

Spot

 

 

 

34

Linda Leah (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

 

Jan 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

Fixed

$14,500

 

Feb 2012

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

 

 

 

 

Total Handymax (3)

125,970

 

 

 

 

 

 

Total Fleet (47)

4,137,488

 

 

 

 

 

 

Average age

 

10.4 Yrs

 

 

 

 



(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) These charters are expected to commence in November 2011.


(4) 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.


(5)  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.


(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 under 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: October 25, 2011

By:

/s/ Pavlos Kanellopoulos

Pavlos Kanellopoulos

Chief Financial Officer