Excel Maritime Carriers Ltd.(fka EXMCQ)

[eastunder]

Excel Maritime Reports Third Quarter 2008 Diluted EPS of $2.70 and Declares Dividend of $0.40 per Share

Wednesday, November 05, 2008 16:05ET



ATHENS, GREECE -- (Marketwire) -- 11/05/08 -- Excel Maritime Carriers Ltd (NYSE: EXM), 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, 2008.

On April 15, 2008, the Company successfully completed the acquisition of Quintana Maritime Limited, creating a combined company that operates a fleet of 47 vessels with a total carrying capacity of approximately 3.7 million DWT and an average age of approximately 8.9 years;

Third Quarter Highlights:


-- Revenues from operations increased by approximately 436% to $231.6
million in the third quarter of 2008 compared to $43.2 million in the
corresponding period in 2007. Revenues include non-cash adjustments of
approximately $84.7 million, relating to the amortization of unfavorable
time charters that were fair valued upon acquiring Quintana;

-- Net income for the quarter increased by approximately 544% to $119.2
million or $2.70 per diluted share, compared to $18.5 million or $0.93 per
diluted share in the third quarter of 2007. Net income includes a non-cash
interest-rate swap loss in the period of approximately $6.7 million
compared to a loss of $0.7 million in the third quarter of 2007;

-- Adjusted EBITDA for the quarter was approximately $107.3 million
compared to $29.5 million in the third quarter of 2007, an increase of
approximately 264%;

-- An average of 47 vessels were operated during the third quarter of
2008 earning a blended average adjusted time charter equivalent rate of
$33,804 per day compared to $29,384 per day for the third quarter of 2007;

-- As a result of the merger with Quintana which caused a reduction in
the average age of the fleet and the application of joint fleet management
processes the Company has been able to generate significant savings in
vessel operating expenses. During the third quarter of 2008 the average
vessel operating expenses per day dropped sharply to $4,499 (Panamax) and
to $4,378 (Handysize) which corresponds to savings of 28% and 20%
respectively when compared to the same period in 2007. Management believes
that maintaining low vessel operating cost levels lends strength to the
comparative advantage of the Company and intends to continue its efforts to
control expenses and deliver further synergies from the merger of Excel
with Quintana;

-- The Company maintains its increased quarterly minimum dividend
guidance of $0.40 per share. The third quarter 2008 dividend of $0.40 per
share is payable on December 5, 2008 to shareholders of record as of
November 20, 2008.


Management Commentary:

Stamatis Molaris, President and Chief Executive Officer of Excel, stated, "The Company's strong third quarter results are underpinned by its significant time charter coverage despite the soft rate environment experienced in September. We also believe that our time charter coverage of approximately 85% for the fourth quarter 2008 and 61% for the full year 2009, provide cash flow security and insulate the Company from the challenging market conditions that we are currently experiencing mainly caused by an unprecedented credit freeze. We also pleased to report the significant reduction in our vessel operating costs as the result of the synergies created from the merger of Excel with Quintana, which enhances our profitability."

Third Quarter 2008 Results:

Following the acquisition of Quintana on April 15, 2008, the third quarter results reflect a full quarter's operations of the combined entity.

For the third quarter of 2008, Excel reported net income of $119.2 million, or $2.70 per diluted share, compared to net income of $18.5 million, or $0.93 per diluted share, in the third quarter of 2007. The third quarter 2008 results include a non-cash unrealized interest-rate swap loss of $6.7 million compared to an unrealized interest-rate swap loss of $0.7 million in the corresponding period in 2007. Swap gains and losses are recorded in income as they do not meet the criteria for hedge accounting. Before the unrealized swap losses, adjusted net income is $125.9 million, or $2.85 per adjusted diluted share, compared to $19.3 million or $0.97 per share in the third quarter 2007, an increase of approximately 552%.

Revenues for the third quarter of 2008 amounted to $231.6 million as compared to $43.2 million for the same period in 2007, an increase of approximately 436%. Included in revenues for the third quarter of 2008 are $84.7 million of non-cash revenues relating to the amortization of underwater time charters. There were no such non-cash revenue adjustments recorded in the corresponding period in 2007.

General and administrative expenses for the third quarter of 2008 include an amount of $4.0 million or $0.09 per diluted share representing the amortization cost related to the stock based incentive program which was initiated in the second quarter of 2008.

Adjusted EBITDA for the third quarter of 2008 was $107.3 million compared to $29.5 million for the third quarter of 2007, an increase of approximately 264%. Adjusted EBITDA for the third quarter excludes bareboat charter amortization of approximately $10.2 million relating to favorable bareboat time charters that were fair valued upon the acquisition of Quintana and reflected as an asset on Excel's balance sheet. The amortization increases charter hire expense on Excel's income statement and there was no such amortization in the corresponding period in 2007. It also excludes an amount of $84.7 million representing the amortization of unfavorable time charters that were fair valued upon the acquisition of Quintana and reflected as a liability on Excel's balance sheet. The amortization increases revenue from operations and there was no such amortization in the corresponding period in 2007.

Please refer to a subsequent section of this Press Release for a reconciliation of adjusted EBITDA to Net Income. An average of 47 vessels were operated during the third quarter of 2008 earning a blended average adjusted time charter equivalent rate of $33,804 per day, compared to an average of 16.0 vessels operated during the third quarter of 2007 earning a blended average time charter equivalent rate of $29,384 per day.

Nine Months to September 30, 2008

The nine month period 2008 results include the consolidated results of Excel and Quintana starting from April 16, 2008. In this respect, approximately $85.7 million of revenues earned by Quintana between January 1 and April 15, 2008 have not been included in the nine month period results.

For the nine-month period ended September 30, 2008, Excel reported net income of $284.5 million, or $8.21 per diluted share, compared to net income of $50.8 million, or $2.54 per diluted share, for the corresponding period in 2007. The nine months 2008 results include a non-cash unrealized swap gain of $14.4 million compared to an unrealized swap loss of $0.5 million in the corresponding period of 2007. The nine months results of 2007 also include a gain on sale of vessels of $6.2 million whereas no such gains were recorded in the nine months period ended September 30, 2008. Before the unrealized swap gain or loss and the gain on sale of vessel, adjusted net income is $270.1 million, or $7.80 per adjusted diluted share, compared to $45.1 million or $2.26 per share in the nine months of 2007, an increase of approximately 499%.

Revenues for the nine months to September 30, 2008 amounted to $506.9 million as compared to $116.6 million for the same period in 2007, an increase of 335%. Included in revenues for the same period of 2008 is a non-cash time charter amortization of $160.3 million, as discussed above. There were no such non-cash revenues recorded in the corresponding period in 2007.

Adjusted EBITDA for the nine months to September 30, 2008 was $248.0 million compared to $75.9 million for the nine months to September 30, 2007, an increase of approximately 227%. Adjusted EBITDA for the nine months to September 30, 2008 excludes bareboat charter amortization of approximately $18.5 million relating to favorable bareboat time charters. There was no such amortization in the corresponding period in 2007. It also excludes the amortization of unfavorable time charters as discussed above. Please refer to a subsequent section of this Press Release for a reconciliation of adjusted EBITDA to Net Income.

An average of 35.8 vessels were operated during the nine months to September 30, 2008 earning a blended average adjusted time charter equivalent rate of $34,912 per day, compared to an average of 16.5 vessels operated during the same period of 2007 earning a blended average time charter equivalent rate of $25,601 per day.

Dividend Declaration:

The Board of Directors has declared a dividend of $0.40 per share payable on December 5, 2008 to all shareholders of record as of November 20, 2008. Inclusive of this dividend, Excel Maritime has declared an aggregate dividend of $1.80 per share since May 2007. The dividend payment of $0.40 per share is consistent with the guidance provided by the Board of Directors. The Board retains the authority to alter the dividend policy at its discretion.


financials: http://www.knobias.com/story.htm?eid=3.1.7afd657cc05b7d63070c3102e6b74f8821aa3e56af2d9473f0331cb44ce8fc3c