Excel Maritime Carriers Ltd. declared mixed financial results for the second quarter of 2012. GAAP net loss in the reported quarter was $33.4 million or a loss of 37 cents per share compared with a net loss of $16 million or 19 cent per share in the year-ago quarter. However, quarterly adjusted (excluding special-items) earnings per share of a loss of 41 cents were wider than the Zacks Consensus Estimate of a loss of 38 cents.
Quarterly total revenue was $64.1 million compared with $92.8 million in the prior-year quarter. This massive decline was primarily attributable to an extremely volatile freight environment of the global drybulk shipping industry. Nevertheless, quarterly Voyage revenue of approximately $63.1 million strides ahead of the Zacks Consensus Estimate of $56 million. In the reported quarter, Time Charter Equivalent (TCE) per day was $12,871 compared with $18,932 in the prior-year quarter.
Quarterly total operating expenses were nearly $82.5 million, down 13.3% year over year. Operating loss in the reported quarter was $18.4 million compared with $2.4 million in the year-ago quarter. Quarterly adjusted EBITDA was $17.7 million, down by a substantial 59.7% year over year. An average of 47 Excel Maritime vessels were operated during the second quarter of 2012 compared with 48 in the year-ago quarter. Management announced that the company secured under time charter employment of 83% for its entire fleet and 100% for capsize vessels for fiscal 2012.
During the first half of 2012, Excel Maritime generated $4.2 million of cash from operations in stark contrast to $71.4 million in the year-ago quarter. Free cash flow in the reported period was $4.1 million compared with $51.4 million in the prior-year period.
At the end of the second quarter of 2012, Excel Maritime had a little over $27.2 million of cash & cash equivalents compared with $53.8 million at the end of 2011. Total debt, at the end of the previous quarter, was $1,031.4 million compared with $1,154 million at the end of 2011. At the end of the reported quarter, debt-to-capitalization ratio was 0.39 compared with 0.37 at the end of 2011.
Excel Maritime operates under highly competitive drybulk shipping industry. The company’s main competitors are Diana Shipping Inc. (DSX - Snapshot Report), Genco Shipping & Trading Ltd. (GNK - Snapshot Report), and DryShips Inc. (DRYS - Analyst Report). We maintain our long-term Neutral recommendation on Excel Maritime. Currently, the company holds a short-term Zacks #3 Rank (Hold) on the stock.