Danaos Corporation (“Danaos”) (NYSE: DAC), one of the world’s largest independent owners of containerships, today reported unaudited results for the period ended September 30, 2023.
Highlights for the Third Quarter and Nine Months Ended September 30, 2023:
- Adjusted net income1 of $143.0 million, or $7.26 per share, for the three months ended September 30, 2023 compared to $176.9 million, or $8.71 per share, for the three months ended September 30, 2022, a decrease of $33.9 million or $1.45 per share. Adjusted net income for the three months ended September 30, 2022 had included a non-recurring $23.2 million dividend from ZIM Integrated Shipping Services Ltd. (“ZIM”) that accounted for $1.14 per share.
- Adjusted net income of $431.6 million, or $21.54 per share, for the nine months ended September 30, 2023 compared to $569.3 million, or $27.67 per share, for the nine months ended September 30, 2022, a decrease of $137.7 million or $6.13 per share. Adjusted net income for the nine months ended September 30, 2022 had included a non-recurring $147.1 million dividend from ZIM that accounted for $7.15 per share.
- Net income of $133.2 million, or $6.76 per share, for the three months ended September 30, 2023 compared to $66.8 million, or $3.29 per share, for the three months ended September 30, 2022, an increase of $66.4 million, or $3.47 per share. Net income of $426.4 million, or $21.28 per share, for the nine months ended September 30, 2023 compared to $406.5 million, or $19.75 per share, for the nine months ended September 30, 2022, an increase of $19.9 million, or $1.53 per share.
- Adjusted EBITDA1 of $178.0 million for the three months ended September 30, 2023 compared to $213.1 million for the three months ended September 30, 2022, a decrease of $35.1 million. Adjusted EBITDA for the three months ended September 30, 2022 had included a non-recurring $23.2 million dividend from ZIM.
- Adjusted EBITDA of $534.4 million for the nine months ended September 30, 2023 compared to $674.7 million for the nine months ended September 30, 2022, a decrease of $140.3 million. Adjusted EBITDA for the nine months ended September 30, 2022 had included a non-recurring $147.1 million dividend from ZIM.
- Cash and cash equivalents were $306.3 million as of September 30, 2023.
- As of September 30, 2023, Net Debt2 was $111.1 million, and Net Debt / LTM Adjusted EBITDA was 0.16x. Currently, 44 of our container vessels and 4 recently acquired drybulk vessels are debt-free.
- Total liquidity was $655.0 million as of September 30, 2023, including undrawn available commitments under our Revolving Credit Facility.
- As of the date of this release, Danaos has repurchased a total of 1,570,195 shares of its common stock in the open market for $97.4 million, under its share repurchase program of up to $100 million announced in June 2022.
- Additional share repurchase program of up to $100 million was approved by our Board on November 10, 2023.
- In September 2023, we reached an agreement to acquire another 2 Capesize bulk carriers built in 2009 that aggregate 351,765 DWT for a total of $36.6 million. These vessels are expected to be delivered to us between November and December 2023. This will bring the total number of Capesize bulk carriers in our fleet to 7 with an aggregate capacity of 1,231,071 DWT.
- We have 10 container vessels under construction with an aggregate capacity of 74,914 TEU, with expected deliveries of seven vessels in 2024, one vessel in 2025 and two vessels in 2026. All our newbuildings are designed with the latest eco characteristics, will be methanol fuel ready, fitted with Alternative Maritime Power Units and will all be built in accordance with the latest requirements of the International Maritime Organization in relation to Tier III emission standards and Energy Efficiency Design Index (EEDI) Phase III.
- During the last three months we added approximately $178 million to our contracted revenue backlog through the arrangement of new charters for six container vessels in our fleet. The new fixtures notably include additional contracted revenues of $103 million for two 13,100 TEU vessels and $68 million for two 10,100 TEU vessels that were forward fixed on new 3-year charters.
- As a result, total contracted cash operating revenues, on the basis of concluded charter contracts through the date of this release, had increased to $2.5 billion as of September 30, 2023. The remaining average contracted charter duration was 3.2 years, weighted by aggregate contracted charter hire.
- Contracted operating days charter coverage for our containership fleet is currently 100.0% for 2023 and 90.3% for 2024.
- Danaos has declared a dividend of $0.80 per share of common stock for the third quarter of 2023, which is payable on December 6, 2023, to stockholders of record as of November 27, 2023.
Three and Nine Months Ended September 30, 2023 Financial Summary - Unaudited (Expressed in thousands of United States dollars, except per share amounts) |
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Three months
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Three months
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Nine months
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Nine months
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September 30, |
September 30, |
September 30, |
September 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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Operating revenues |
$239,215 |
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$260,037 |
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$724,268 |
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$740,861 |
Net income |
$133,156 |
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$66,800 |
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$426,378 |
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$406,489 |
Adjusted net income1 |
$142,963 |
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$176,922 |
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$431,623 |
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$569,329 |
Earnings per share, diluted |
$6.76 |
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$3.29 |
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$21.28 |
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$19.75 |
Adjusted earnings per share, diluted1 |
$7.26 |
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$8.71 |
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$21.54 |
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$27.67 |
Diluted weighted average number of shares (in thousands) |
19,693 |
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20,318 |
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20,039 |
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20,579 |
Adjusted EBITDA1 |
$178,027 |
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$213,106 |
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$534,393 |
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$674,738 |
| 1 | Adjusted net income, adjusted earnings per share and adjusted EBITDA are non-GAAP measures. Refer to the reconciliation of net income to adjusted net income and net income to adjusted EBITDA provided below. |
| 2 | Net Debt is defined as total debt gross of deferred finance costs less cash and cash equivalents. |
Danaos’ CEO Dr. John Coustas commented:
“The macroeconomic environment continued to deteriorate during the third quarter of 2023, and container transport stagnated in most areas due to continued inventory destocking and weak retail sales. As a result, the profitability of liner companies has dramatically decreased, and the major operators have announced sweeping cost cutting measures. The chartering market continued to remain under pressure, particularly in the market for vessels smaller than 3,000 TEU, where charter rates returned to pre-pandemic levels.
In larger vessel segments, charter rates have remained relatively stable given the scarcity of open tonnage for next year, a factor that has enabled us to forward fix all our vessels above 10,000 TEU on three year charters at profitable levels that will commence after expiry of existing charter contracts in 2024. As a result, our charter cover for 2024 has increased to 90%.
Separately, through the date of this release we have taken delivery of the first four capesize bulk carriers and we have achieved rates well ahead of our expectations. While we do not expect a sustained upwards momentum in charter rates in the near term, we will closely monitor the dry bulk market and opportunistically pursue opportunities to expand our presence in this market.
The resilience of our business model has been confirmed by the continuation of our solid results despite the significant fall in the charter market. Our strategy of delevering has also been effective and well timed as we have not been impacted by higher interest rates. Our charter backlog of $2.5 billion in contracted revenue also provides us with significant cash flow visibility and allows us to maintain flexibility in our capital allocation policy.
In this regard, we decided to increase our quarterly dividend to $0.80 and also to authorize an additional $100 million in share buybacks as our initial $100 million authorization has been almost exhausted. Due to the prudent execution of our strategy, we have been able to return over $200 million to our shareholders over the last eighteen months and simultaneously grow our fleet in the container segment by placing 10 newbuilding orders and create exposure to the dry bulk segment through investments in companies and vessels.
We will strive to continue to create value for all our shareholders while ensuring the long-term prosperity of Danaos.”
Three months ended September 30, 2023 compared to the three months ended September 30, 2022
During the three months ended September 30, 2023, Danaos had an average of 68.0 container vessels compared to 71.0 container vessels during the three months ended September 30, 2022. Our containership fleet utilization for the three months ended September 30, 2023 was 97.7% compared to 97.1% for the three months ended September 30, 2022.
Our adjusted net income amounted to $143.0 million, or $7.26 per share, for the three months ended September 30, 2023 compared to $176.9 million, or $8.71 per share, for the three months ended September 30, 2022. We have adjusted our net income in the three months ended September 30, 2023 for a $9.3 million change in fair value of investments and a $0.5 million non-cash finance fees amortization. Please refer to the Adjusted Net Income reconciliation table, which appears later in this earnings release.
The $33.9 million decrease in adjusted net income for the three months ended September 30, 2023 compared to the three months ended September 30, 2022 is primarily attributable to a $22.3 million decrease in dividends received. We also incurred a $0.5 million equity loss on investments in the three months ended September 30, 2023, a $20.8 million decrease in operating revenues and a $0.3 million increase in total operating expenses, which were partially offset by a $10.0 million decrease in net finance expenses.
On a non-adjusted basis, net income amounted to $133.2 million, or $6.76 earnings per diluted share, for the three months ended September 30, 2023 compared to net income of $66.8 million, or $3.29 earnings per diluted share, for the three months ended September 30, 2022. Our net income for the three months ended September 30, 2022 included a $84.0 million total loss on our investment in ZIM, net of withholding taxes on dividends, compared to a $8.4 million total loss on our EGLE investments for the three months ended September 30, 2023.
Operating Revenues
Operating revenues decreased by 8.0%, or $20.8 million, to $239.2 million in the three months ended September 30, 2023 from $260.0 million in the three months ended September 30, 2022.
Operating revenues for the three months ended September 30, 2023 reflected:
- a $9.5 million decrease in revenues in the three months ended September 30, 2023 compared to the three months ended September 30, 2022 due to decreased amortization of assumed time charters,
- a $5.5 million decrease in revenues in the three months ended September 30, 2023 compared to the three months ended September 30, 2022 due to vessel disposals;
- a $3.1 million decrease in revenues in the three months ended September 30, 2023 compared to the three months ended September 30, 2022 due to lower non-cash revenue recognition in accordance with US GAAP; and
- a $2.7 million decrease in revenues in the three months ended September 30, 2023 compared to the three months ended September 30, 2022 mainly as a result of lower charter rates;
Vessel Operating Expenses
Vessel operating expenses increased by $0.3 million to $39.5 million in the three months ended September 30, 2023 from $39.2 million in the three months ended September 30, 2022, primarily as a result of an increase in the average daily operating cost for vessels on time charter to $6,499 per vessel per day for the three months ended September 30, 2023 compared to $6,173 per vessel per day for the three months ended September 30, 2022, which was partially offset by a decrease in the average number of vessels in our fleet. The average daily operating cost increased mainly due to increased repair and maintenance expenses. Management believes that our daily operating costs remain among the most competitive in the industry.
Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Drydocking and Special Survey Costs.
Depreciation
Depreciation expense decreased by 5.3%, or $1.8 million, to $32.3 million in the three months ended September 30, 2023 from $34.1 million in the three months ended September 30, 2022 mainly due to our recent sale of three vessels.
Amortization of Deferred Drydocking and Special Survey Costs
Amortization of deferred drydocking and special survey costs increased by $1.7 million to $4.8 million in the three months ended September 30, 2023 from $3.1 million in the three months ended September 30, 2022.
General and Administrative Expenses
General and administrative expenses decreased by $0.1 million to $7.1 million in the three months ended September 30, 2023, from $7.2 million in the three months ended September 30, 2022.
Other Operating Expenses
Other Operating Expenses include Voyage Expenses.
Voyage Expenses
Voyage expenses decreased by $1.3 million to $9.0 million in the three months ended September 30, 2023 from $10.3 million in the three months ended September 30, 2022 primarily as a result of a decrease in the commissions and average number of vessels in our fleet.
Interest Expense and Interest Income
Interest expense decreased by 73.1%, or $11.7 million, to $4.3 million in the three months ended September 30, 2023 from $16.0 million in the three months ended September 30, 2022. The decrease in interest expense is a result of:
- a $5.8 million decrease in interest expense due to a decrease in our average indebtedness by $549.2 million between the two periods. Average indebtedness was $422.1 million in the three months ended September 30, 2023, compared to average indebtedness of $971.3 million in the three months ended September 30, 2022. This decrease was partially offset by an increase in our debt service cost by approximately 2.2% as a result of higher interest rates;
- a $3.5 million decrease in interest expense due to an increase in capitalized interest expense on our vessels under construction in the three months ended September 30, 2023; and
- a $2.4 million decrease in the amortization of deferred finance costs and debt discount.
As of September 30, 2023, outstanding debt, gross of deferred finance costs, was $417.4 million, which included $262.8 million principal amount of our Senior Notes. These balances compare to debt of $868.1 million, which included $300.0 million principal amount of our Senior Notes, and a leaseback obligation of $79.6 million, gross of deferred finance costs, as of September 30, 2022.
Interest income increased by $1.8 million to $3.1 million in the three months ended September 30, 2023 compared to $1.3 million in the three months ended September 30, 2022 mainly as a result of increased interest rates and average amount of time deposits in the three months ended September 30, 2023.
Loss on investments
We recognized a $8.4 million loss on marketable securities, which consisted of the change in fair value of $9.3 million and dividends of $0.9 million in the three months ended September 30, 2023 on our shareholding interest in Eagle Bulk (“EGLE”) of 1,552,865 shares of common stock. This loss compares to a loss on investments of $80.3 million in the three months ended September 30, 2022, which consisted of the change in fair value of our shareholding interest in ZIM of $107.3 million and dividends recognized on ZIM ordinary shares of $27.0 million. In September 2022, we sold all of our remaining ordinary shares of ZIM for net proceeds of $161.3 million.
Equity loss on investments
Equity loss on investments amounting to $0.5 million in the three months ended September 30, 2023 relates to our share of initial expenses of a newly established company, Carbon Termination Technologies Corporation (“CTTC”), currently engaged in the research and development of decarbonization technologies for the shipping industry.
Other finance expenses
Other finance expenses increased by $1.0 million to $1.2 million in the three months ended September 30, 2023 compared to $0.2 million in the three months ended September 30, 2022 mainly due to commitment fees for our recently established revolving credit facility.
Loss on derivatives
Amortization of deferred realized losses on interest rate swaps remained stable at $0.9 million in each of the three months ended September 30, 2023 and September 30, 2022.
Other income/(expenses), net
Other expenses, net were $1.1 million in the three months ended September 30, 2023 compared to other income, net of $0.4 million in the three months ended September 30, 2022.
Income taxes
Income taxes of $3.8 million in the three months ended September 30, 2022, related to the taxes withheld on dividend income earned on ZIM ordinary shares compared to no income tax in the three months ended September 30, 2023.
Adjusted EBITDA
Adjusted EBITDA decreased by 16.5%, or $35.1 million, to $178.0 million in the three months ended September 30, 2023 from $213.1 million in the three months ended September 30, 2022. As outlined above, the decrease is primarily attributable to a $22.3 million decrease in dividends received. We also incurred a $11.3 million decrease in operating revenues, a $1.0 million increase in total operating expenses and a $0.5 million equity loss on investments in the three months ended September 30, 2023. Adjusted EBITDA for the three months ended September 30, 2023 is adjusted for a $9.3 million change in fair value of investments. Tables reconciling Net Income to Adjusted EBITDA can be found at the end of this earnings release.
Nine months ended September 30, 2023 compared to the nine months ended September 30, 2022
During the nine months ended September 30, 2023, Danaos had an average of 68.1 container vessels compared to 71.0 container vessels during the nine months ended September 30, 2022. Our containership fleet utilization for the nine months ended September 30, 2023 was 97.7% compared to 98.1% for the nine months ended September 30, 2022.
Our adjusted net income amounted to $431.6 million, or $21.54 per share, for the nine months ended September 30, 2023 compared to $569.3 million, or $27.67 per share, for the nine months ended September 30, 2022. We have adjusted our net income in the nine months ended September 30, 2023 for a $2.9 million change in fair value of investments, a $2.3 million loss on debt extinguishment, a $1.6 million gain on sale of vessel and a $1.7 million non-cash fees amortization. Please refer to the Adjusted Net Income reconciliation table, which appears later in this earnings release.
The $137.7 million decrease in adjusted net income for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022 is primarily attributable to a $146.2 million decrease in dividends received. We also incurred a $3.9 million equity loss on investments in the nine months ended September 30, 2023, a $16.6 million decrease in operating revenues and a $1.3 million increase in total operating expenses, which were partially offset by a $30.3 million decrease in net finance expenses.
On a non-adjusted basis, our net income amounted to $426.4 million, or $21.28 earnings per diluted share, for the nine months ended September 30, 2023 compared to net income of $406.5 million, or $19.75 earnings per diluted share, for the nine months ended September 30, 2022. Our net income for the nine months ended September 30, 2022 included a total loss on our investment in ZIM of $29.2 million, net of withholding taxes on dividends and a gain on debt extinguishment of $22.9 million compared to a $2.0 million total loss on our EGLE investment and a $2.3 million loss on debt extinguishment for the nine months ended September 30, 2023.
Operating Revenues
Operating revenues decreased by 2.2%, or $16.6 million, to $724.3 million in the nine months ended September 30, 2023 from $740.9 million in the nine months ended September 30, 2022.
Operating revenues for the nine months ended September 30, 2023 reflect:
- a $33.2 million increase in revenues in the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022 mainly as a result of higher charter rates;
- a $29.5 million decrease in revenues in the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022 due to decreased amortization of assumed time charters;
- a $14.2 million decrease in revenues in the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022 due to vessel disposals; and
- a $6.1 million decrease in revenues in the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022 due to lower non-cash revenue recognition in accordance with US GAAP.
Vessel Operating Expenses
Vessel operating expenses increased by $3.1 million to $122.0 million in the nine months ended September 30, 2023 from $118.9 million in the nine months ended September 30, 2022, primarily as a result of an increase in the average daily operating cost for vessels on time charter to $6,758 per vessel per day for the nine months ended September 30, 2023 compared to $6,314 per vessel per day for the nine months ended September 30, 2022, which was partially offset by a decrease in the average number of vessels in our fleet. The average daily operating cost increased mainly due to increased repair and maintenance expenses. Management believes that our daily operating costs remain among the most competitive in the industry.
Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Drydocking and Special Survey Costs.
Depreciation
Depreciation expense decreased by 5.4%, or $5.5 million, to $95.8 million in the nine months ended September 30, 2023 from $101.3 million in the nine months ended September 30, 2022 due to our recent sale of three vessels.
Amortization of Deferred Drydocking and Special Survey Costs
Amortization of deferred drydocking and special survey costs increased by $4.1 million to $13.1 million in the nine months ended September 30, 2023 from $9.0 million in the nine months ended September 30, 2022.
General and Administrative Expenses
General and administrative expenses decreased by $0.6 million to $21.1 million in the nine months ended September 30, 2023, from $21.7 million in the nine months ended September 30, 2022. The decrease was primarily attributable to decreased management fees due to the recent sale of three vessels.
Other Operating Expenses
Other Operating Expenses include Voyage Expenses.
Voyage Expenses
Voyage expenses decreased by $1.7 million to $25.2 million in the nine months ended September 30, 2023 from $26.9 million in the nine months ended September 30, 2022 primarily as a result of a decrease in commissions and the average number of vessels in our fleet.
Gain on Sale of Vessels
In January 2023, we completed the sale of the Amalia C for net proceeds of $4.9 million resulting in a gain of $1.6 million.
Interest Expense and Interest Income
Interest expense decreased by 65.6%, or $32.3 million, to $16.9 million in the nine months ended September 30, 2023 from $49.2 million in the nine months ended September 30, 2022. The decrease in interest expense is a result of:
- a $16.7 million decrease in interest expense due to a decrease in our average indebtedness by $696.4 million between the two periods. Average indebtedness was $462.9 million in the nine months ended September 30, 2023, compared to average indebtedness of $1,159.3 million in the nine months ended September 30, 2022. This decrease was partially offset by an increase in our debt service cost by approximately 2.7% as a result of higher interest rates;
- a $10.0 million decrease in interest expense due to an increase in capitalized interest expense on our vessels under construction in the nine months ended September 30, 2023;
- a $7.7 million decrease in the amortization of deferred finance costs and debt discount; and
- a $2.1 million reduction of accumulated accrued interest that had been accrued in 2018 in relation to two of our credit facilities that were fully repaid in May 2022.
As of September 30, 2023, outstanding debt, gross of deferred finance costs, was $417.4 million, which included $262.8 million principal amount of our Senior Notes. These balances compare to debt of $868.1 million, which included $300.0 million principal amount of our Senior Notes, and a leaseback obligation of $79.6 million, gross of deferred finance costs, as of September 30, 2022.
Interest income increased by $8.0 million to $9.4 million in the nine months ended September 30, 2023 compared to $1.4 million in the nine months ended September 30, 2022 mainly as a result of increased interest rates and average amount of time deposits in the nine months ended September 30, 2023.
Loss on investments
We recognized a $2.0 million loss on marketable securities, which consisted of the change in fair value of $2.9 million and dividends of $0.9 million in the nine months ended September 30, 2023 on our shareholding interest in EGLE of 1,552,865 shares of common stock. This loss compares to a loss on investments of $11.0 million in the nine months ended September 30, 2022, which consisted of the change in fair value of our shareholding interest in ZIM of $176.4 million and dividends recognized on ZIM ordinary shares of $165.4 million. In the nine months ended September 30, 2022, we sold all of our remaining ordinary shares of ZIM for net proceeds of $246.6 million.
Gain/(loss) on debt extinguishment
A $2.3 million loss on early extinguishment of our leaseback obligations in the nine months ended September 30, 2023 compares to a $22.9 million gain related to our early extinguishment of debt in the nine months ended September 30, 2022.
Equity loss on investments
Equity loss on investments amounting to $3.9 million in the nine months ended September 30, 2023 relates to our share of initial expenses of a newly established company, CTTC, currently engaged in the research and development of decarbonization technologies for the shipping industry.
Other finance expenses
Other finance expenses increased by $2.3 million to $3.4 million in the nine months ended September 30, 2023 compared to $1.1 million in the nine months ended September 30, 2022 mainly due to commitment fees for our recently established revolving credit facility.
Loss on derivatives
Amortization of deferred realized losses on interest rate swaps remained stable at $2.7 million in each of the nine months ended September 30, 2023 and September 30, 2022.
Other income/(expenses), net
Other expenses, net were $0.6 million in the nine months ended September 30, 2023 compared to other income, net of $1.3 million in the nine months ended September 30, 2022.
Income taxes
Income taxes of $18.3 million, in the nine months ended September 30, 2022, related to the taxes withheld on dividend income earned on ZIM ordinary shares and compared to no income tax in the nine months ended September 30, 2023.
Adjusted EBITDA
Adjusted EBITDA decreased by 20.8%, or $140.3 million, to $534.4 million in the nine months ended September 30, 2023 from $674.7 million in the nine months ended September 30, 2022. As outlined above, the decrease is mainly attributable to a $146.2 million decrease in dividends received. We also incurred a $3.1 million increase in total operating expenses and a $3.9 million equity loss on investments in the nine months ended September 30, 2023, which were partially offset by a $12.9 million increase in operating revenues. Adjusted EBITDA for the nine months ended September 30, 2023 is adjusted for a $2.9 million change in fair value of investments, a $2.3 million loss on debt extinguishment and a $1.6 million gain on sale of vessel. Tables reconciling Net Income to Adjusted EBITDA can be found at the end of this earnings release.
Dividend Payment
Danaos has declared a dividend of $0.80 per share of common stock for the third quarter of 2023, which is payable on December 6, 2023 to stockholders of record as of November 27, 2023.
Recent Developments
As of the date of this release, we have repurchased a total of 1,570,195 shares of our common stock in the open market for $97.4 million, under our share repurchase program of up to $100 million announced in June 2022. Additional share repurchase program of up to $100 million was approved by our Board on November 10, 2023.
In September 2023, we entered into agreements to acquire 2 additional Capesize bulk carriers built in 2009 that aggregate to 351,765 DWT for a total of $36.6 million. These vessels are expected to be delivered to us between November and December 2023.
Executive Officers
On November 10, 2023, Iraklis Prokopakis’s previously announced retirement from his executive role as Senior Vice President and Chief Operating Officer of the Company became effective. Mr. Prokopakis will remain a member of the Company’s Board of Directors, on which he will serve as Vice Chairman.
On November 10, 2023, Dimitris Vastarouchas, who had been serving as the Company’s Deputy Chief Operating Officer was appointed the Company’s Chief Operating Officer, and Filippos Prokopakis, who had been serving as Commercial Director of our manager, Danaos Shipping, was appointed Chief Commercial Officer of the Company.
Management Agreement
In November 2023, we agreed to extend the term of our Management Agreement with Danaos Shipping from December 31, 2024 to December 31, 2025 and to modify the fees and commissions payable by us thereunder.
Conference Call and Webcast
On Tuesday, November 14, 2023 at 9:00 A.M. ET, the Company's management will host a conference call to discuss the results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 844 802 2437 (US Toll Free Dial In), 0800 279 9489 (UK Toll Free Dial In) or +44 (0) 2075 441 375 (Standard International Dial In). Please indicate to the operator that you wish to join the Danaos Corporation earnings call.
A telephonic replay of the conference call will be available until November 21, 2023 by dialing 1 877 344 7529 (US Toll Free Dial In) or 1-412-317-0088 (Standard International Dial In) and using 5709620# as the access code.
Audio Webcast
There will also be a live and then archived webcast of the conference call on the Danaos website (www.danaos.com). Participants of the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Slide Presentation
A slide presentation regarding the Company and the containership industry will also be available on the Danaos website (www.danaos.com).
About Danaos Corporation
Danaos Corporation is one of the largest independent owners of modern, large-size containerships. Our current fleet of 68 containerships aggregating 421,293 TEUs and 10 under construction containerships aggregating 74,914 TEUs ranks Danaos among the largest containership charter owners in the world based on total TEU capacity. Our containerships fleet is chartered to many of the world's largest liner companies on fixed-rate charters. In addition to our containership fleet, we have recently entered into agreements to acquire 7 Capesize bulk carriers aggregating 1,231,071 DWT, out of which 4 have been delivered to us already. Our long track record of success is predicated on our efficient and rigorous operational standards and environmental controls. Danaos Corporation's shares trade on the New York Stock Exchange under the symbol "DAC".
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions. Although Danaos Corporation believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Danaos Corporation cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include any resurgence of the COVID-19 pandemic, the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in Danaos Corporation's operating expenses, including bunker prices, drydocking and insurance costs, our ability to operate profitably in the drybulk sector, ability to obtain financing and comply with covenants in our financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, including the conflict in Ukraine and related sanctions, the conflict in Israel and the Gaza Strip, potential disruption of shipping routes due to accidents and political events or acts by terrorists.
Risks and uncertainties are further described in reports filed by Danaos Corporation with the U.S. Securities and Exchange Commission.
Visit our website at www.danaos.com
Appendix
Fleet Utilization
Danaos had 22 unscheduled off-hire days in the three months ended September 30, 2023. The following table summarizes containership fleet utilization and the impact of the off-hire days on the Company’s revenue.
Vessel Utilization (No. of Days) |
First
|
Second
|
Third
|
||||
2023 |
2023 |
2023 |
Total |
||||
Ownership Days |
6,150 |
6,188 |
6,256 |
18,594 |
|||
Less Off-hire Days: |
|||||||
Scheduled Off-hire Days |
(150) |
(80) |
(119) |
(349) |
|||
Other Off-hire Days |
(44) |
(2) |
(22) |
(68) |
|||
Operating Days |
5,956 |
6,106 |
6,115 |
18,177 |
|||
Vessel Utilization |
96.8% |
98.7% |
97.7% |
97.7% |
|||
|
|||||||
Operating Revenues (in '000s of US Dollars) |
$243,574 |
$241,479 |
$239,215 |
$724,268 |
|||
Average Gross Daily Charter Rate |
$40,896 |
$39,548 |
|
$39,119 |
$39,845 |
||
Vessel Utilization (No. of Days) |
First
|
Second
|
Third
|
||||
2022 |
2022 |
2022 |
Total |
||||
Ownership Days |
6,390 |
6,461 |
6,532 |
19,383 |
|||
Less Off-hire Days: |
|||||||
Scheduled Off-hire Days |
(148) |
- |
(169) |
(317) |
|||
Other Off-hire Days |
(16) |
(8) |
(21) |
(45) |
|||
Operating Days |
6,226 |
6,453 |
6,342 |
19,021 |
|||
Vessel Utilization |
97.4% |
99.9% |
97.1% |
98.1% |
|||
|
|||||||
Operating Revenues (in '000s of US Dollars) |
$229,901 |
$250,923 |
$260,037 |
$740,861 |
|||
Average Gross Daily Charter Rate |
$36,926 |
$38,885 |
|
$41,002 |
$38,950 |
Fleet List
The following table describes in detail our fleet deployment profile of our containerships as of November 10, 2023:
Vessel Name |
Vessel Size (TEU) |
|
Year Built |
|
Expiration of Charter(1) |
|
Hyundai Ambition |
13,100 |
|
2012 |
|
April 2027 |
|
Hyundai Speed |
13,100 |
|
2012 |
|
April 2027 |
|
Hyundai Smart |
13,100 |
|
2012 |
|
June 2027 |
|
Hyundai Respect |
13,100 |
|
2012 |
|
April 2027 |
|
Hyundai Honour |
13,100 |
|
2012 |
|
March 2027 |
|
Express Rome |
10,100 |
|
2011 |
|
April 2027 |
|
Express Berlin |
10,100 |
|
2011 |
|
August 2026 |
|
Express Athens |
10,100 |
|
2011 |
|
April 2027 |
|
Le Havre |
9,580 |
|
2006 |
|
June 2028 |
|
Pusan C |
9,580 |
|
2006 |
|
May 2028 |
|
Bremen |
9,012 |
|
2009 |
|
January 2028 |
|
C Hamburg |
9,012 |
|
2009 |
|
January 2028 |
|
Niledutch Lion |
8,626 |
|
2008 |
|
May 2026 |
|
Kota Manzanillo |
8,533 |
|
2005 |
|
February 2026 |
|
Belita |
8,533 |
|
2006 |
|
July 2026 |
|
CMA CGM Melisande |
8,530 |
|
2012 |
|
January 2028 |
|
CMA CGM Attila |
8,530 |
|
2011 |
|
May 2027 |
|
CMA CGM Tancredi |
8,530 |
|
2011 |
|
July 2027 |
|
CMA CGM Bianca |
8,530 |
|
2011 |
|
September 2027 |
|
CMA CGM Samson |
8,530 |
|
2011 |
|
November 2027 |
|
America |
8,468 |
|
2004 |
|
April 2028 |
|
Europe |
8,468 |
|
2004 |
|
May 2028 |
|
Kota Santos |
8,463 |
|
2005 |
|
August 2026 |
|
CMA CGM Moliere |
6,500 |
|
2009 |
|
March 2027 |
|
CMA CGM Musset |
6,500 |
|
2010 |
|
September 2025 |
|
CMA CGM Nerval |
6,500 |
|
2010 |
|
November 2025 |
|
CMA CGM Rabelais |
6,500 |
|
2010 |
|
January 2026 |
|
Racine (ex CMA CGM Racine) |
6,500 |
|
2010 |
|
April 2026 |
|
YM Mandate |
6,500 |
|
2010 |
|
January 2028 |
|
YM Maturity |
6,500 |
|
2010 |
|
April 2028 |
|
Zim Savannah |
6,402 |
|
2002 |
|
May 2024 |
|
Dimitra C |
6,402 |
|
2002 |
|
January 2024 |
|
Suez Canal |
5,610 |
|
2002 |
|
April 2026 |
|
Kota Lima |
5,544 |
|
2002 |
|
November 2024 |
|
Wide Alpha |
5,466 |
|
2014 |
|
March 2024 |
|
Stephanie C |
5,466 |
|
2014 |
|
June 2025 |
|
Maersk Euphrates |
5,466 |
|
2014 |
|
April 2024 |
|
Wide Hotel |
5,466 |
|
2015 |
|
May 2024 |
|
Wide India |
5,466 |
|
2015 |
|
November 2025 |
|
Wide Juliet |
5,466 |
|
2015 |
|
September 2025 |
|
Seattle C |
4,253 |
|
2007 |
|
October 2024 |
|
Vancouver |
4,253 |
|
2007 |
|
November 2024 |
|
Derby D |
4,253 |
|
2004 |
|
January 2027 |
|
Tongala |
4,253 |
|
2004 |
|
November 2024 |
|
Rio Grande |
4,253 |
|
2008 |
|
November 2024 |
|
Merve A (ex ZIM Sao Paolo) |
4,253 |
|
2008 |
|
September 2025 |
|
Kingston (ex ZIM Kingston) |
4,253 |
|
2008 |
|
June 2025 |
|
ZIM Monaco |
4,253 |
|
2009 |
|
October 2024 |
|
Dalian |
4,253 |
|
2009 |
|
March 2026 |
|
ZIM Luanda |
4,253 |
|
2009 |
|
August 2025 |
|
Dimitris C |
3,430 |
|
2001 |
|
November 2025 |
|
Express Black Sea |
3,400 |
|
2011 |
|
January 2025 |
|
Express Spain |
3,400 |
|
2011 |
|
January 2025 |
|
Express Argentina |
3,400 |
|
2010 |
|
September 2024 |
|
Express Brazil |
3,400 |
|
2010 |
|
June 2025 |
|
Express France |
3,400 |
|
2010 |
|
September 2025 |
|
Singapore |
3,314 |
|
2004 |
|
May 2024 |
|
Colombo |
3,314 |
|
2004 |
|
January 2025 |
|
Zebra |
2,602 |
|
2001 |
|
November 2024 |
|
Artotina |
2,524 |
|
2001 |
|
May 2025 |
|
Advance |
2,200 |
|
1997 |
|
January 2025 |
|
Future |
2,200 |
|
1997 |
|
December 2024 |
|
Sprinter |
2,200 |
|
1997 |
|
December 2024 |
|
Stride |
2,200 |
|
1997 |
|
January 2025 |
|
Progress C |
2,200 |
|
1998 |
|
November 2024 |
|
Bridge |
2,200 |
|
1998 |
|
December 2024 |
|
Highway |
2,200 |
|
1998 |
|
February 2024 |
|
Phoenix D |
2,200 |
|
1997 |
|
March 2025 |
|
(1) |
Earliest date charters could expire. Some charters include options for the charterer to extend their terms. |
|||||
The following table describes the details of our Capesize drybulk vessels, which did not generate any operating revenues in the three months ended September 30, 2023: |
||||||
Vessel Name |
Capacity (DWT) |
|
Year Built |
|
|
|
Bulk Achievement (3) |
175,850 |
|
2011 |
|
|
|
Bulk Genius (2) |
175,580 |
|
2012 |
|
|
|
Bulk Ingenuity (2) |
176,022 |
|
2011 |
|
|
|
Integrity (2) |
175,996 |
|
2010 |
|
|
|
Peace |
175,858 |
|
2010 |
|
|
|
West Trader (3) |
175,879 |
|
2009 |
|
|
|
East Trader (3) |
175,886 |
|
2009 |
|
|
|
(2) |
The vessels were delivered to us in October and November 2023 |
|
|
|||
(3) |
The vessels are expected to be delivered to us between November and December 2023. |
|||||
Containerships under construction: |
|
|
||||
Hull Number |
Vessel Size
|
|
Expected
|
|
Minimum Charter Duration |
|
Hull No. C7100-7 |
7,165 |
|
2024 |
|
3 Years |
|
Hull No. C7100-8 |
7,165 |
|
2024 |
|
3 Years |
|
Hull No. HN4009 |
8,010 |
|
2024 |
|
3 Years |
|
Hull No. HN4010 |
8,010 |
|
2024 |
|
3 Years |
|
Hull No. HN4011 |
8,010 |
|
2024 |
|
3 Years |
|
Hull No. HN4012 |
8,010 |
|
2024 |
|
3 Years |
|
Hull No. CV5900-07 |
6,014 |
|
2024 |
|
- |
|
Hull No. CV5900-08 |
6,014 |
|
2025 |
|
- |
|
Hull No. YZJ2023-1556 |
8,258 |
|
2026 |
|
- |
|
Hull No. YZJ2023-1557 |
8,258 |
|
2026 |
|
- |
|
DANAOS CORPORATION Condensed Consolidated Statements of Income - Unaudited (Expressed in thousands of United States dollars, except per share amounts) |
||||||||
|
Three months
|
|
Three months
|
|
Nine months
|
|
Nine months
|
|
September 30, |
September 30, |
September 30, |
September 30, |
|||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
OPERATING REVENUES |
$239,215 |
|
$260,037 |
|
$724,268 |
|
$740,861 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
Vessel operating expenses |
(39,494) |
|
(39,186) |
|
(121,994) |
|
(118,929) |
|
Depreciation & amortization |
(37,097) |
|
(37,225) |
|
(108,873) |
|
(110,259) |
|
General & administrative |
(7,070) |
|
(7,157) |
|
(21,107) |
|
(21,684) |
|
Other operating expenses |
(8,959) |
|
(10,320) |
|
(25,241) |
|
(26,952) |
|
Gain on sale of vessels |
- |
|
- |
|
1,639 |
|
- |
|
Income From Operations |
146,595 |
|
166,149 |
|
448,692 |
|
463,037 |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME/(EXPENSES) |
|
|
|
|
|
|
|
|
Interest income |
3,091 |
|
1,323 |
|
9,410 |
|
1,444 |
|
Interest expense |
(4,306) |
(15,968) |
(16,909) |
(49,161) |
||||
Loss on investments |
(8,432) |
(80,277) |
(1,994) |
(10,987) |
||||
Gain/(loss) on debt extinguishment |
- |
- |
(2,254) |
22,939 |
||||
Other finance expenses |
(1,236) |
(155) |
(3,358) |
(1,096) |
||||
Equity loss on investments |
(526) |
|
- |
|
(3,852) |
|
- |
|
Other income/(expenses), net |
(1,117) |
|
411 |
|
(648) |
|
1,272 |
|
Realized loss on derivatives |
(913) |
|
(913) |
|
(2,709) |
|
(2,709) |
|
Total Other Income/(Expenses), net |
(13,439) |
|
(95,579) |
|
(22,314) |
|
(38,298) |
|
Income Before Income Taxes |
133,156 |
|
70,570 |
|
426,378 |
|
424,739 |
|
Income taxes |
- |
|
(3,770) |
|
- |
|
(18,250) |
|
Net Income |
$133,156 |
|
$66,800 |
|
$426,378 |
|
$406,489 |
|
EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
Basic earnings per share |
$6.76 |
|
$3.29 |
|
$21.28 |
|
$19.77 |
|
Diluted earnings per share |
$6.76 |
|
$3.29 |
|
$21.28 |
|
$19.75 |
|
Basic weighted average number of common shares (in thousands of shares) |
19,693 |
|
20,299 |
20,039 |
|
20,560 |
||
Diluted weighted average number of common shares (in thousands of shares) |
19,693 |
|
20,318 |
20,039 |
20,579 |
|||
Non-GAAP Measures1 Reconciliation of Net Income to Adjusted Net Income – Unaudited |
|||||||
|
Three months
|
|
Three months
|
Nine months
|
|
Nine months
|
|
September 30, |
September 30, |
September 30, |
September 30, |
||||
|
2023 |
|
2022 |
2023 |
|
2022 |
|
Net income |
$133,156 |
|
$66,800 |
$426,378 |
|
$406,489 |
|
Change in fair value of investments |
9,333 |
|
107,290 |
2,895 |
|
176,386 |
|
Loss/(gain) on debt extinguishment |
- |
|
- |
2,254 |
|
(22,939) |
|
Gain on sale of vessels |
- |
|
- |
(1,639) |
|
- |
|
Amortization of financing fees and debt discount |
474 |
|
2,832 |
1,735 |
|
9,393 |
|
Adjusted Net Income |
$142,963 |
|
$176,922 |
$431,623 |
|
$569,329 |
|
Adjusted Earnings Per Share, diluted |
$7.26 |
|
$8.71 |
$21.54 |
|
$27.67 |
|
Diluted weighted average number of shares (in thousands of shares) |
19,693 |
|
20,318 |
20,039 |
|
20,579 |
|
1 The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Table above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and nine months ended September 30, 2023 and 2022. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP. |
DANAOS CORPORATION Condensed Consolidated Balance Sheets - Unaudited (Expressed in thousands of United States dollars) |
||||
|
|
As of |
|
As of |
September 30, |
December 31, |
|||
|
|
2023 |
|
2022 |
ASSETS |
|
|
|
|
CURRENT ASSETS |
|
|
|
|
Cash, cash equivalents and restricted cash |
|
$306,290 |
|
$267,668 |
Accounts receivable, net |
|
7,351 |
|
5,635 |
Other current assets |
|
184,556 |
|
99,218 |
|
|
498,197 |
|
372,521 |
NON-CURRENT ASSETS |
|
|
|
|
Fixed assets, net |
|
2,652,958 |
|
2,721,494 |
Advances for vessels acquisition and vessels under construction |
|
289,149 |
|
190,736 |
Deferred charges, net |
|
33,998 |
|
25,554 |
Investments in affiliates |
|
411 |
|
- |
Other non-current assets |
|
79,226 |
|
89,923 |
|
|
3,055,742 |
|
3,027,707 |
TOTAL ASSETS |
|
$3,553,939 |
|
$3,400,228 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
Long-term debt, current portion |
|
$24,400 |
|
$27,500 |
Long-term leaseback obligations, current portion |
|
- |
|
27,469 |
Accounts payable, accrued liabilities & other current liabilities |
|
148,681 |
|
173,438 |
|
|
173,081 |
|
228,407 |
LONG-TERM LIABILITIES |
|
|
|
|
Long-term debt, net |
|
386,222 |
|
402,440 |
Long-term leaseback obligations, net |
|
- |
|
44,542 |
Other long-term liabilities |
|
102,263 |
|
164,425 |
|
|
488,485 |
|
611,407 |
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
Common stock |
|
195 |
|
203 |
Additional paid-in capital |
|
695,593 |
|
748,109 |
Accumulated other comprehensive loss |
|
(70,941) |
|
(74,209) |
Retained earnings |
|
2,267,526 |
|
1,886,311 |
|
|
2,892,373 |
|
2,560,414 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$3,553,939 |
|
$3,400,228 |
DANAOS CORPORATION Condensed Consolidated Statements of Cash Flows - Unaudited (Expressed in thousands of United States dollars) |
||||||||
|
Three months ended |
|
Three months ended |
|
Nine months ended |
|
Nine months ended |
|
September 30, |
September 30, |
September 30, |
September 30, |
|||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Operating Activities: |
|
|
|
|
|
|
|
|
Net income |
$133,156 |
|
$66,800 |
|
$426,378 |
|
$406,489 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization of right-of-use assets |
32,325 |
|
34,141 |
|
95,764 |
|
101,253 |
|
Amortization of deferred drydocking & special survey costs, finance cost and debt discount |
5,246 |
|
5,916 |
|
14,844 |
|
18,399 |
|
Amortization of assumed time charters |
(4,416) |
|
(13,892) |
|
(16,806) |
|
(46,256) |
|
Prior service cost and periodic cost |
220 |
|
- |
|
1,106 |
|
- |
|
Loss on investments |
9,333 |
|
107,290 |
|
2,895 |
|
176,386 |
|
Loss/(gain) on debt extinguishment |
- |
|
- |
|
2,254 |
|
(22,939) |
|
Gain on sale of vessels |
- |
|
- |
|
(1,639) |
|
- |
|
Payments for drydocking/special survey |
(6,993) |
|
(6,433) |
|
(21,553) |
|
(16,159) |
|
Equity loss on investments |
526 |
|
- |
|
3,852 |
|
- |
|
Amortization of deferred realized losses on cash flow interest rate swaps |
913 |
|
913 |
|
2,709 |
|
2,709 |
|
Stock based compensation |
- |
|
125 |
|
- |
|
373 |
|
Accounts receivable |
740 |
|
408 |
|
(1,716) |
|
1,986 |
|
Other assets, current and non-current |
982 |
|
(10,123) |
|
(11,424) |
|
(53,553) |
|
Accounts payable and accrued liabilities |
(4,654) |
|
(5,498) |
|
(7,805) |
|
(657) |
|
Other liabilities, current and long-term |
(17,872) |
|
(10,881) |
|
(58,747) |
|
221,213 |
|
Net Cash provided by Operating Activities |
149,506 |
|
168,766 |
|
430,112 |
|
789,244 |
|
|
|
|
|
|
|
|
|
|
Investing Activities: |
|
|
|
|
|
|
|
|
Vessels additions and advances |
(98,274) |
|
(11,087) |
|
(128,058) |
|
(95,134) |
|
Proceeds and advances received from sale of vessels |
- |
- |
3,914 |
|
13,000 |
|||
Proceeds from sale of investments |
- |
161,305 |
- |
|
246,638 |
|||
Investments in affiliates/marketable securities |
- |
|
- |
|
(74,407) |
|
- |
|
Net Cash provided by/(used in) Investing Activities |
(98,274) |
|
150,218 |
|
(198,551) |
|
164,504 |
|
|
|
|
|
|
|
|
|
|
Financing Activities: |
|
|
|
|
|
|
|
|
Proceeds from long-term debt |
- |
|
- |
|
- |
|
127,725 |
|
Debt repayment |
(6,875) |
|
(17,875) |
|
(20,625) |
|
(401,000) |
|
Payments of leaseback obligations |
- |
|
(26,179) |
|
(72,925) |
|
(146,866) |
|
Dividends paid |
(14,802) |
|
(15,228) |
|
(45,163) |
|
(46,298) |
|
Repurchase of common stock |
(16,596) |
|
(22,228) |
|
(52,334) |
|
(28,553) |
|
Payments of accumulated accrued interest |
- |
|
- |
|
- |
|
(3,373) |
|
Finance costs |
- |
|
(704) |
|
(1,892) |
|
(15,796) |
|
Net Cash used in Financing Activities |
(38,273) |
|
(82,214) |
|
(192,939) |
|
(514,161) |
|
Net increase in cash, cash equivalents and restricted cash |
12,959 |
|
236,770 |
|
38,622 |
|
439,587 |
|
Cash, cash equivalents and restricted cash, beginning of period |
293,331 |
|
332,573 |
|
267,668 |
|
129,756 |
|
Cash, cash equivalents and restricted cash, end of period |
$306,290 |
|
$569,343 |
|
$306,290 |
|
$569,343 |
|
DANAOS CORPORATION Reconciliation of Net Income to Adjusted EBITDA - Unaudited (Expressed in thousands of United States dollars) |
|||||||
|
Three months
|
|
Three months
|
|
Nine months
|
|
Nine months
|
September 30, |
September 30, |
September 30, |
September 30, |
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net income |
$133,156 |
|
$66,800 |
|
$426,378 |
|
$406,489 |
Depreciation and amortization of right-of-use assets |
32,325 |
|
34,141 |
|
95,764 |
|
101,253 |
Amortization of deferred drydocking & special survey costs |
4,772 |
|
3,084 |
|
13,109 |
|
9,006 |
Amortization of assumed time charters |
(4,416) |
|
(13,892) |
|
(16,806) |
|
(46,256) |
Amortization of deferred finance costs, debt discount and commitment fees |
1,203 |
|
2,832 |
|
3,965 |
|
9,393 |
Amortization of deferred realized losses on interest rate swaps |
913 |
|
913 |
|
2,709 |
|
2,709 |
Interest income |
(3,091) |
|
(1,323) |
|
(9,410) |
|
(1,444) |
Interest expense |
3,832 |
|
13,136 |
|
15,174 |
|
39,768 |
Income taxes |
- |
|
3,770 |
|
- |
|
18,250 |
Loss on investments and dividend withholding taxes |
9,333 |
103,520 |
2,895 |
158,136 |
|||
Loss/(gain) on debt extinguishment |
- |
- |
2,254 |
(22,939) |
|||
Gain on sale of vessels |
- |
- |
(1,639) |
- |
|||
Stock based compensation |
- |
|
125 |
|
- |
|
373 |
Adjusted EBITDA(1) |
$178,027 |
|
$213,106 |
|
$534,393 |
|
$674,738 |
1) |
Adjusted EBITDA represents net income before interest income and expense, taxes other than withholding taxes on dividend, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs, debt discount and commitment fees, amortization of deferred realized losses on interest rate swaps, gain/loss on investments, gain/loss on debt extinguishment, gain on sale of vessels and stock based compensation. However, Adjusted EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or “GAAP.” We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that Adjusted EBITDA is useful in evaluating our operating performance compared to that of other companies in our industry because the calculation of Adjusted EBITDA generally eliminates the effects of financings, income taxes and the accounting effects of capital expenditures and acquisitions, items which may vary for different companies for reasons unrelated to overall operating performance. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. |
Note: Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to net income. Charges negatively impacting net income are reflected as increases to net income. |
|
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and nine months ended September 30, 2023 and 2022. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231113106297/en/
Contacts
For further information please contact:
Company Contact:
Evangelos Chatzis
Chief Financial Officer
Danaos Corporation
Athens, Greece
Tel.: +30 210 419 6480
E-Mail: cfo@danaos.com
Investor Relations and Financial Media
Rose & Company
New York
Tel. 212-359-2228
E-Mail: danaos@rosecoglobal.com
