Linked above is the quarterly earnings report for Excel Maritime Carriers. Today there was a interestin analysis of the earnings on Seeking Alpha, you can read it here. Taking a closer look at some of the numbers show interesting results. Here are my handpicked numbers comparing the first quarter of 2008 to the same quarter of 2009:
Owned vessels: 2008: 18 2009: 48
Voyage revenues: 08: $69.5 mil. 09: $92.8 mil.
Vessel operating expenses: 08: $9 mil. 09: $21 mil.
Interest and finance cost: 08: $5.7 mil. 09: $18 mil.
So looking at the real cash flow money, revenues increased by $23 million and expenses by $24 million. Not what you want to see when you make an acquisition and increase the fleet by 160%. Also, in the balance sheet the value of the new much larger fleet is about the same as the much smaller fleet one year earlier, more pain.
In January 2008 Excel agreed to buy Quintana for $2.45 billion and completed the merger in April of 2008. Today EXM has a market cap of $750 million dollars. In hindsight that was a great deal for the sellers and the buyers have taken it on the chin. Excel now has a very nice fleet of dry bulk ships and it will be interesting to see how long it takes them to start building value and strong revenues with the fleet.
Excel Maritime posts unique earnings report
exm052109.pdf (application/pdf Object).
Linked above is the quarterly earnings report for Excel Maritime Carriers. Today there was a interestin analysis of the earnings on Seeking Alpha, you can read it here. Taking a closer look at some of the numbers show interesting results. Here are my handpicked numbers comparing the first quarter of 2008 to the same quarter of 2009:
So looking at the real cash flow money, revenues increased by $23 million and expenses by $24 million. Not what you want to see when you make an acquisition and increase the fleet by 160%. Also, in the balance sheet the value of the new much larger fleet is about the same as the much smaller fleet one year earlier, more pain.
In January 2008 Excel agreed to buy Quintana for $2.45 billion and completed the merger in April of 2008. Today EXM has a market cap of $750 million dollars. In hindsight that was a great deal for the sellers and the buyers have taken it on the chin. Excel now has a very nice fleet of dry bulk ships and it will be interesting to see how long it takes them to start building value and strong revenues with the fleet.