Excel Maritime Carriers Ltd. (EXM), a global dry bulk carrier, declared third quarter of 2010 financial results. Quarterly adjusted (excluding one-time special gains) EPS was 11 cents per share, exactly in line with the Zacks Consensus Estimate.
GAAP net income in the third quarter of 2010 was $48 million or 57 cents per share, compared to a net income of $62 million or 79 cents per share in the year-ago quarter.
Quarterly total revenue was a little over $157.4 compared to $174.4 million in the prior-year quarter. However, Voyage revenue, in the third quarter of 2010 was slightly above $104.7 million, an improvement of 7% year-over-year and also better than the Zacks Consensus Estimate of $96 million. In the reported quarter, Time Charter Equivalent (TCE) per day was $22,848 compared to $21,912 in the prior-year quarter.
Quarterly total operating expenses were nearly $89.5 million, down 1.5% year over year. This was mainly due to 21.4% decrease in General and Administrative expenses and complete elimination of dry-docking and special survey costs. Quarterly adjusted EBITDA was $62.3 million, up 5.4% year-over-year.
An average of 48.0 Excel Maritime vessels were operated during the third quarter of 2010 compared to 47.0 in the year-ago quarter. Management announced that the company secured under time charter employment 68% of its operating days for the rest of 2010 and 27% for the next fiscal ending December 31, 2011.
During the first nine months of fiscal 2010, Excel Maritime generated $128.4 million of cash from operations compared to $106.8 million in the year-ago period. Free cash flow (cash flow from operations less capital expenditure) in the same period was $52 million compared to $97.6 million in the prior-year quarter.
At the end of the third quarter of 2010, Excel Maritime had $85.4 of cash and cash equivalents compared to $100.1 million at the end of fiscal 2009. Total debt at the end of the reported quarter was $1,172.5 million compared to $1,256.45 million at the end of fiscal 2009. At the end of the third quarter of 2010, the debt-to-capitalization ratio was 0.39 compared to 0.43 at the end of fiscal 2009.
We maintain our long-term Neutral recommendation for Excel Maritime. Currently it is a short-term Zacks #3 Rank (Hold) stock.
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