Danaos Corporation Reports Second Quarter and Half Year Results for the Period Ended June 30, 2023
- Adjusted net income for Q2 2023 decreased by $13.7 million compared to Q2 2022.
- Net income for Q2 2023 increased by $138.8 million compared to Q2 2022.
- Adjusted EBITDA for Q2 2023 decreased by $14.8 million compared to Q2 2022.
- Cash and cash equivalents were $293.3 million as of June 30, 2023.
- Danaos has repurchased 1,080,547 shares of its common stock.
- Danaos entered into contracts for the construction of two containerships.
- Danaos reached an agreement to acquire 5 Capesize bulk carriers.
- Contracted revenue backlog increased to $2.5 billion.
- None.
Highlights for the Second Quarter and Half Year Ended June 30, 2023:
-
Adjusted net income1 of
$143.4 million $7.14 $157.1 million $7.59 $13.7 million $0.45 $13.9 million $0.67 -
Adjusted net income of
$288.7 million $14.28 $392.4 million $18.95 $103.7 million $4.67 $123.9 million $5.98 -
Net income of
$147.0 million $7.32 $8.2 million $0.40 $138.8 million $6.92 $293.2 million $14.51 $339.7 million $16.40 $46.5 million $1.89 -
Adjusted EBITDA1 of
$177.3 million $192.1 million $14.8 million $13.9 million -
Adjusted EBITDA of
$356.3 million $461.6 million $105.3 million $123.9 million -
Cash and cash equivalents were
$293.3 million -
As of June 30, 2023, Net Debt2 was
$131.0 million -
Total liquidity was
$653.3 million -
As of the date of this release, Danaos has repurchased a total of 1,080,547 shares of its common stock in the open market for
$65.6 million $100 million -
During the three months ended June 30, 2023 we acquired 1,552,865 shares of common stock of Eagle Bulk Shipping Inc. (“Eagle Bulk”) for a total of
$68.2 million 16.7% shareholding stake. Eagle Bulk is listed on the New York Stock Exchange (Ticker: EGLE) and currently owns and operates a fleet of 52 Ultramax and Supramax bulk carriers that aggregate to approximately 3.2 million deadweight tons (“DWT”). - On June 20, 2023, we entered into contracts for the construction of two 8,258 TEU containerships. These containerships are expected to be delivered to us in 2026.
- This brings the total tally of our newbuilding order-book to 10 vessels 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.
-
In July 2023, we reached an in principle agreement to acquire 5 Capesize bulk carriers built in 2010 through 2012 that aggregate to 879,306 DWT for a total of
$103 million -
During the last three months we added approximately
$469 million $177 million $227 million -
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 -
Contracted operating days charter coverage for our containership fleet is currently
99.4% for 2023 and86.1% for 2024. -
Danaos has declared a dividend of
$0.75
Three and Six Months Ended June 30, 2023 Financial Summary - Unaudited
(Expressed in thousands of |
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Six months ended |
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June 30, |
June 30, |
June 30, |
June 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 |
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Net income |
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Adjusted net income1 |
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Earnings per share, diluted |
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Adjusted earnings per share, diluted1 |
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Diluted weighted average number of shares (in thousands) |
20,081 |
|
20,708 |
|
20,214 |
|
20,712 |
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Adjusted EBITDA1 |
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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 world economies stagnated in the second quarter of 2023, resulting in a gradual easing of the container market. Danaos active strategy in the current market conditions is made possible by the prudent approach we have taken to manage our balance sheet to conservative levels as well as our successful chartering strategy. The latter is reflected in our operating revenues of
In the second quarter of 2023, Danaos received the Gold, first place awards in the Governance and Environment categories in the inaugural ESG Shipping Awards. These accolades, which we are proud of, acknowledge the company’s exemplary efforts in promoting sustainable practices, social responsibility, and strong governance and reaffirm our position as a leader in responsible maritime operations. The timing of the awards is notable as the IMO recently reiterated and strengthened its commitment to decarbonize shipping by targeting a net zero by around 2050.
Danaos continues to advance its decarbonization strategy in multiple ways. We are constantly optimizing and retrofitting our existing fleet and have committed to upgrade around 20 vessels with new propellers, fuel saving appendages and low friction paints. We have also expanded our new building program with the order of four additional newbuilding vessels. These vessels, two of which are 6,000 TEU and two of which are 8,200 TEU, will be delivered methanol-ready, ensuring the longevity of our investment. In total, we have 10 vessels, with a total capacity of approximately 75,000 TEU, on order. All of these will be able to utilize alternative fuels. Importantly, six of these vessels are already chartered for multi-year periods beginning on their delivery dates in 2024.
We also deployed capital opportunistically, after identifying weakness in the dry bulk market, a market we are very familiar with. We believe the long-term fundamentals in the dry bulk market are very positive. In particular, the orderbook is at historically low levels, and fleet supply growth is projected to decline significantly over the next several years against a backdrop of rebounding demand. Short-term market sentiment is not as strong, and we were able to make investments at attractive prices. As has been previously reported, Danaos acquired a significant stake in Eagle Bulk Shipping, Inc., a NYSE listed dry bulk company (“Eagle”). Additionally, we acquired five Capesize bulk carriers in the secondhand market.
With respect to Eagle, we were able to purchase shares in a company we believed had best in class corporate governance practices at a significant discount to our perception of the company’s net asset value. Shortly following our investment, the Board of Eagle unilaterally implemented a poison pill and repurchased Oaktree Capital’s
With respect to our interest in the dry bulk market in general, Danaos has significant experience in the dry bulk market as an owner and operator. We exited the segment years ago, which was a well-timed decision in hindsight, and now we again see opportunity. Given the strength of our balance sheet, we are uniquely positioned to deploy capital in various ways to grow our revenue base and earnings. Our fleet of container vessels, which are contracted on multi-year charters, provides strong revenue and cash flow visibility. While we will continue to grow and future-proof our core fleet by adding next generation vessels to it, our ultimate goal is to generate value for our shareholders, and we will consistently pursue the best opportunities to do so.
As I have said before, our healthy balance sheet allows us to be opportunistic and deploy our capital in various ways. During the quarter, we continued our buyback program and have now spent
We will continue to implement our strategy to ensure the long-term growth and profitability of the company and are consistently focused on creating value for our shareholders.”
Three months ended June 30, 2023 compared to the three months ended June 30, 2022
During the three months ended June 30, 2023, Danaos had an average of 68.0 containerships compared to 71.0 containerships during the three months ended June 30, 2022. Our fleet utilization for the three months ended June 30, 2023 was
Our adjusted net income amounted to
The
On a non-adjusted basis, net income amounted to
Operating Revenues
Operating revenues decreased by
Operating revenues for the three months ended June 30, 2023 reflected:
-
a
$5.5 million -
a
$0.3 million -
a
$5.4 million -
a
$9.8 million
Vessel Operating Expenses
Vessel operating expenses increased by
Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.
Depreciation
Depreciation expense decreased by
Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs increased by
General and Administrative Expenses
General and administrative expenses increased by
Other Operating Expenses
Other Operating Expenses include Voyage Expenses.
Voyage Expenses
Voyage expenses decreased by
Interest Expense and Interest Income
Interest expense decreased by
-
a
$5.3 million $694.3 million $459.9 million $1,154.2 million 2.9% as a result of higher interest rates; -
a
$3.0 million -
a
$2.6 million -
a
$0.7 million
As of June 30, 2023, outstanding debt, gross of deferred finance costs, was
Interest income increased by
Gain/(loss) on investments
We recognized a
Gain/(loss) on debt extinguishment
A
Equity loss on investments
Equity loss on investments amounting to
Other finance expenses
Other finance expenses increased by
Loss on derivatives
Amortization of deferred realized losses on interest rate swaps remained stable at
Other income/(expenses), net
Other income, net was
Income taxes
Income taxes of
Adjusted EBITDA
Adjusted EBITDA decreased by
Six months ended June 30, 2023 compared to the six months ended June 30, 2022
During the six months ended June 30, 2023, Danaos had an average of 68.2 containerships compared to 71.0 containerships during the six months ended June 30, 2022. Our fleet utilization for the six months ended June 30, 2023 was
Our adjusted net income amounted to
The
On a non-adjusted basis, our net income amounted to
Operating Revenues
Operating revenues increased by
Operating revenues for the six months ended June 30, 2023 reflect:
-
a
$35.9 million -
a
$8.7 million -
a
$3.0 million -
a
$20.0 million
Vessel Operating Expenses
Vessel operating expenses increased by
Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.
Depreciation
Depreciation expense decreased by
Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs increased by
General and Administrative Expenses
General and administrative expenses decreased by
Other Operating Expenses
Other Operating Expenses include Voyage Expenses.
Voyage Expenses
Voyage expenses decreased by
Gain on Sale of Vessels
In January 2023, we completed the sale of the Amalia C for net proceeds of
Interest Expense and Interest Income
Interest expense decreased by
-
a
$10.9 million $771.2 million $483.7 million $1,254.9 million 2.9% as a result of higher interest rates; -
a
$6.5 million -
a
$5.3 million -
a
$2.1 million
As of June 30, 2023, outstanding debt, gross of deferred finance costs, was
Interest income increased by
Gain on investments
We recognized a
Gain/(loss) on debt extinguishment
A
Equity loss on investments
Equity loss on investments amounting to
Other finance expenses
Other finance expenses increased by
Loss on derivatives
Amortization of deferred realized losses on interest rate swaps remained stable at
Other income/(expenses), net
Other income, net was
Income taxes
Income taxes of
Adjusted EBITDA
Adjusted EBITDA decreased by
Dividend Payment
Danaos has declared a dividend of
Recent Developments
As of the date of this release, we have repurchased a total of 1,080,547 shares of our common stock in the open market for
On June 20, 2023, we entered into contracts for the construction of two 8,258 TEU containerships with the latest eco design characteristics. The containerships are expected to be delivered to us in 2026.
In July 2023, we reached an in principle agreement to acquire 5 Capesize bulk carriers built in 2010 through 2012 that aggregate to 879,306 DWT for a total of
Conference Call and Webcast
On Monday, August 7, 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 (
A telephonic replay of the conference call will be available until August 14, 2023 by dialing 1 877 344 7529 (US Toll Free Dial In) or 1-412-317-0088 (Standard International Dial In) and using 6018489# 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 reached an in principle agreement to acquire 5 Capesize bulk carriers aggregating 879,306 DWT. 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 and efforts throughout the world to contain its spread, including effects on global economic activity, demand for seaborne transportation of containerized and drybulk cargo, the ability and willingness of charterers to perform their obligations to us, charter rates for containerships and drybulk carriers, shipyards constructing our contracted newbuilding vessels, performing scrubber installations, drydocking and repairs, changing vessel crews and availability of financing, 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 dry-docking, changes in Danaos Corporation's operating expenses, including bunker prices, dry-docking 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
Risks and uncertainties are further described in reports filed by Danaos Corporation with the
Visit our website at www.danaos.com
Appendix
Fleet Utilization
Danaos had 2 unscheduled off-hire days in the three months ended June 30, 2023. The following table summarizes vessel utilization and the impact of the off-hire days on the Company’s revenue.
Vessel Utilization (No. of Days) |
First Quarter |
Second Quarter |
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2023 |
2023 |
Total |
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Ownership Days |
6,150 |
6,188 |
12,338 |
|||
Less Off-hire Days: |
||||||
Scheduled Off-hire Days |
(150) |
(80) |
(230) |
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Other Off-hire Days |
(44) |
(2) |
(46) |
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Operating Days |
5,956 |
6,106 |
12,062 |
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Vessel Utilization |
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Operating Revenues (in '000s of US Dollars) |
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Average Gross Daily Charter Rate |
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Vessel Utilization (No. of Days) |
First Quarter |
Second Quarter |
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2022 |
2022 |
Total |
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Ownership Days |
6,390 |
6,461 |
12,851 |
|||
Less Off-hire Days: |
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Scheduled Off-hire Days |
(148) |
- |
(148) |
|||
Other Off-hire Days |
(16) |
(8) |
(24) |
|||
Operating Days |
6,226 |
6,453 |
12,679 |
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Vessel Utilization |
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Operating Revenues (in '000s of US Dollars) |
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Average Gross Daily Charter Rate |
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Fleet List
The following table describes in detail our fleet deployment profile of our containerships as of August 3, 2023:
Vessel Name |
Vessel Size (TEU) |
|
Year Built |
|
Expiration of Charter(1) |
|
Hyundai Ambition |
13,100 |
|
2012 |
|
June 2024 |
|
Hyundai Speed |
13,100 |
|
2012 |
|
June 2024 |
|
Hyundai Smart |
13,100 |
|
2012 |
|
June 2027 |
|
Hyundai Respect |
13,100 |
|
2012 |
|
April 2027 |
|
Hyundai Honour |
13,100 |
|
2012 |
|
March 2027 |
|
Express |
10,100 |
|
2011 |
|
May 2024 |
|
Express |
10,100 |
|
2011 |
|
August 2026 |
|
Express |
10,100 |
|
2011 |
|
May 2024 |
|
Le Havre |
9,580 |
|
2006 |
|
June 2028 |
|
Pusan C |
9,580 |
|
2006 |
|
May 2028 |
|
|
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 |
|
|
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 |
|
|
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 |
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 |
5,466 |
|
2015 |
|
November 2025 |
|
Wide Juliet |
5,466 |
|
2015 |
|
October 2025 |
|
Seattle C |
4,253 |
|
2007 |
|
October 2024 |
|
|
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 |
|
Paolo (ex ZIM Sao Paolo) |
4,253 |
|
2008 |
|
August 2025 |
|
|
4,253 |
|
2008 |
|
June 2025 |
|
ZIM |
4,253 |
|
2009 |
|
October 2024 |
|
|
4,253 |
|
2009 |
|
March 2026 |
|
ZIM |
4,253 |
|
2009 |
|
August 2025 |
|
Dimitris C |
3,430 |
|
2001 |
|
November 2025 |
|
Express Black Sea |
3,400 |
|
2011 |
|
January 2025 |
|
Express |
3,400 |
|
2011 |
|
January 2025 |
|
Express |
3,400 |
|
2010 |
|
September 2023 |
|
Express |
3,400 |
|
2010 |
|
June 2025 |
|
Express |
3,400 |
|
2010 |
|
September 2025 |
|
|
3,314 |
|
2004 |
|
May 2024 |
|
|
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 |
|
November 2023 |
|
Phoenix D |
2,200 |
|
1997 |
|
March 2025 |
(1) |
Earliest date charters could expire. Some charters include options for the charterer to extend their terms. |
Dry bulk vessels agreed (in principle) to be acquired: |
|
|
||||
Vessel Name |
Capacity (DWT) |
|
Year Built |
|
|
|
Bulk Achievement |
175,850 |
|
2011 |
|
|
|
Bulk Genius |
175,580 |
|
2012 |
|
|
|
Bulk Ingenuity |
176,022 |
|
2011 |
|
|
|
Bulk Integrity |
175,996 |
|
2010 |
|
|
|
Bulk Peace |
175,858 |
|
2010 |
|
|
|
Containerships under construction: |
|
|
||||
Hull Number |
Vessel Size (TEU) |
|
Expected Delivery Year |
|
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 |
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Three months ended |
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Three months ended |
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Six months ended |
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Six months ended |
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June 30, |
June 30, |
June 30, |
June 30, |
||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
OPERATING REVENUES |
|
|
|
|
|
|
|
||
OPERATING EXPENSES |
|
|
|
|
|
|
|
||
|
Vessel operating expenses |
(41,861) |
|
(40,579) |
|
(82,500) |
|
(79,743) |
|
|
Depreciation & amortization |
(36,412) |
|
(36,955) |
|
(71,776) |
|
(73,034) |
|
|
General & administrative |
(7,192) |
|
(7,136) |
|
(14,037) |
|
(14,527) |
|
|
Other operating expenses |
(8,399) |
|
(9,443) |
|
(16,282) |
|
(16,632) |
|
|
Gain on sale of vessels |
- |
|
- |
|
1,639 |
|
- |
|
Income From Operations |
147,615 |
|
156,810 |
|
302,097 |
|
296,888 |
||
|
|
|
|
|
|
|
|
|
|
OTHER INCOME/(EXPENSES) |
|
|
|
|
|
|
|
||
|
Interest income |
3,596 |
|
120 |
|
6,319 |
|
121 |
|
|
Interest expense |
(5,881) |
(16,079) |
(12,603) |
(33,193) |
||||
|
Gain/(loss) on investments |
6,438 |
(152,427) |
6,438 |
69,290 |
||||
|
Gain/(loss) on debt extinguishment |
(2,254) |
22,939 |
(2,254) |
22,939 |
||||
|
Other finance expenses |
(1,146) |
(336) |
(2,122) |
(941) |
||||
|
Equity loss on investments |
(738) |
|
- |
|
(3,326) |
|
- |
|
|
Other income/(expenses), net |
294 |
|
362 |
|
469 |
|
861 |
|
|
Realized loss on derivatives |
(903) |
|
(903) |
|
(1,796) |
|
(1,796) |
|
Total Other Income/(Expenses), net |
(594) |
|
(146,324) |
|
(8,875) |
|
57,281 |
||
Income Before Income Taxes |
147,021 |
|
10,486 |
|
293,222 |
|
354,169 |
||
|
Income taxes |
- |
|
(2,262) |
|
- |
|
(14,480) |
|
Net Income |
|
|
|
|
|
|
|
||
EARNINGS PER SHARE |
|
|
|
|
|
|
|
||
Basic earnings per share |
|
|
|
|
|
|
|
||
Diluted earnings per share |
|
|
|
|
|
|
|
||
Basic weighted average number of common shares (in thousands of shares) |
20,081 |
|
20,689 |
20,214 |
|
20,693 |
|||
Diluted weighted average number of common shares (in thousands of shares) |
20,081 |
|
20,708 |
20,214 |
20,712 |
||||
Non-GAAP Measures1 Reconciliation of Net Income to Adjusted Net Income – Unaudited |
||||||||
|
Three months ended |
|
Three months ended |
Six months ended |
|
Six months ended |
||
June 30, |
June 30, |
June 30, |
June 30, |
|||||
|
2023 |
|
2022 |
2023 |
|
2022 |
||
Net income |
|
|
|
|
|
|
||
Change in fair value of investments |
(6,438) |
|
168,635 |
(6,438) |
|
69,096 |
||
Loss/(gain) on debt extinguishment |
2,254 |
|
(22,939) |
2,254 |
|
(22,939) |
||
Gain on sale of vessels |
- |
|
- |
(1,639) |
|
- |
||
Amortization of financing fees and debt discount |
568 |
|
3,190 |
1,261 |
|
6,561 |
||
Adjusted Net Income |
|
|
|
|
|
|
||
Adjusted Earnings Per Share, diluted |
|
|
|
|
|
|
||
Diluted weighted average number of shares (in thousands of shares) |
20,081 |
|
20,708 |
20,214 |
|
20,712 |
||
1 The Company reports its financial results in accordance with |
DANAOS CORPORATION Condensed Consolidated Balance Sheets - Unaudited
(Expressed in thousands of |
|||||
|
|
|
As of |
|
As of |
June 30, |
December 31, |
||||
|
|
|
2023 |
|
2022 |
ASSETS |
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
Cash, cash equivalents and restricted cash |
|
|
|
|
|
Accounts receivable, net |
|
8,091 |
|
5,635 |
|
Other current assets |
|
186,361 |
|
99,218 |
|
|
|
487,783 |
|
372,521 |
NON-CURRENT ASSETS |
|
|
|
|
|
|
Fixed assets, net |
|
2,661,976 |
|
2,721,494 |
|
Advances for vessels under construction |
|
215,786 |
|
190,736 |
|
Deferred charges, net |
|
31,777 |
|
25,554 |
|
Investments in affiliates |
|
937 |
|
- |
|
Other non-current assets |
|
86,173 |
|
89,923 |
|
|
|
2,996,649 |
|
3,027,707 |
TOTAL ASSETS |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
Long-term debt, current portion |
|
|
|
|
|
Long-term leaseback obligations, current portion |
|
- |
|
27,469 |
|
Accounts payable, accrued liabilities & other current liabilities |
|
157,572 |
|
173,438 |
|
|
|
185,072 |
|
228,407 |
LONG-TERM LIABILITIES |
|
|
|
|
|
|
Long-term debt, net |
|
389,564 |
|
402,440 |
|
Long-term leaseback obligations, net |
|
- |
|
44,542 |
|
Other long-term liabilities |
|
120,314 |
|
164,425 |
|
|
|
509,878 |
|
611,407 |
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Common stock |
|
197 |
|
203 |
|
Additional paid-in capital |
|
712,154 |
|
748,109 |
|
Accumulated other comprehensive loss |
|
(72,041) |
|
(74,209) |
|
Retained earnings |
|
2,149,172 |
|
1,886,311 |
|
|
|
2,789,482 |
|
2,560,414 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
DANAOS CORPORATION Condensed Consolidated Statements of Cash Flows - Unaudited
(Expressed in thousands of |
|||||||||
|
|
Three months ended |
|
Three months ended |
|
Six months ended |
|
Six months ended |
|
June 30, |
June 30, |
June 30, |
June 30, |
||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Operating Activities: |
|
|
|
|
|
|
|
||
|
Net income |
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization of right-of-use assets |
31,910 |
|
33,753 |
|
63,439 |
|
67,112 |
|
|
Amortization of deferred drydocking & special survey costs, finance cost and debt discount |
5,070 |
|
6,392 |
|
9,598 |
|
12,483 |
|
|
Amortization of assumed time charters |
(5,854) |
|
(15,713) |
|
(12,390) |
|
(32,364) |
|
|
Prior service cost and periodic cost |
394 |
|
- |
|
886 |
|
- |
|
|
Loss/(gain) on investments |
(6,438) |
|
168,635 |
|
(6,438) |
|
69,096 |
|
|
Loss/(gain) on debt extinguishment |
2,254 |
|
(22,939) |
|
2,254 |
|
(22,939) |
|
|
Gain on sale of vessels |
- |
|
- |
|
(1,639) |
|
- |
|
|
Payments for drydocking/special survey |
(4,818) |
|
(471) |
|
(14,560) |
|
(9,726) |
|
|
Equity loss on investments |
738 |
|
- |
|
3,326 |
|
- |
|
|
Amortization of deferred realized losses on cash flow interest rate swaps |
903 |
|
903 |
|
1,796 |
|
1,796 |
|
|
Stock based compensation |
- |
|
124 |
|
- |
|
248 |
|
|
Accounts receivable |
(517) |
|
1,593 |
|
(2,456) |
|
1,578 |
|
|
Other assets, current and non-current |
(3,612) |
|
89,987 |
|
(12,406) |
|
(43,430) |
|
|
Accounts payable and accrued liabilities |
1,934 |
|
(800) |
|
(3,151) |
|
4,841 |
|
|
Other liabilities, current and long-term |
(15,973) |
|
231,326 |
|
(40,875) |
|
232,094 |
|
Net Cash provided by Operating Activities |
153,012 |
|
501,014 |
|
280,606 |
|
620,478 |
||
|
|
|
|
|
|
|
|
|
|
Investing Activities: |
|
|
|
|
|
|
|
||
|
Vessel additions and advances for vessels under construction |
(24,048) |
|
(82,004) |
|
(29,784) |
|
(84,047) |
|
|
Proceeds and advances received from sale of vessels |
- |
85,333 |
3,914 |
|
13,000 |
|||
|
Proceeds from sale of investments |
- |
- |
- |
|
85,333 |
|||
|
Investments in affiliates/marketable securities |
(70,144) |
|
- |
|
(74,407) |
|
- |
|
Net Cash provided by/(used in) Investing Activities |
(94,192) |
|
3,329 |
|
(100,277) |
|
14,286 |
||
|
|
|
|
|
|
|
|
|
|
Financing Activities: |
|
|
|
|
|
|
|
||
|
Proceeds from long-term debt |
- |
|
127,725 |
|
- |
|
127,725 |
|
|
Debt repayment |
(6,875) |
|
(358,825) |
|
(13,750) |
|
(383,125) |
|
|
Payments of leaseback obligations |
(66,296) |
|
(104,394) |
|
(72,925) |
|
(120,687) |
|
|
Dividends paid |
(15,099) |
|
(15,535) |
|
(30,361) |
|
(31,070) |
|
|
Repurchase of common stock |
(35,157) |
|
(6,325) |
|
(35,738) |
|
(6,325) |
|
|
Payments of accumulated accrued interest |
- |
|
(1,938) |
|
- |
|
(3,373) |
|
|
Finance costs |
(1,642) |
|
(11,142) |
|
(1,892) |
|
(15,092) |
|
Net Cash used in Financing Activities |
(125,069) |
|
(370,434) |
|
(154,666) |
|
(431,947) |
||
Net increase/(decrease) in cash, cash equivalents and restricted cash |
(66,249) |
|
133,909 |
|
25,663 |
|
202,817 |
||
Cash, cash equivalents and restricted cash, beginning of period |
359,580 |
|
198,664 |
|
267,668 |
|
129,756 |
||
Cash, cash equivalents and restricted cash, end of period |
|
|
|
|
|
|
|
||
DANAOS CORPORATION Reconciliation of Net Income to Adjusted EBITDA - Unaudited
(Expressed in thousands of |
||||||||
|
Three months ended |
|
Three months ended |
|
Six months ended |
|
Six months ended |
|
June 30, |
June 30, |
June 30, |
June 30, |
|||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Net income |
|
|
|
|
|
|
|
|
Depreciation and amortization of right-of-use assets |
31,910 |
|
33,753 |
|
63,439 |
|
67,112 |
|
Amortization of deferred drydocking & special survey costs |
4,502 |
|
3,202 |
|
8,337 |
|
5,922 |
|
Amortization of assumed time charters |
(5,854) |
|
(15,713) |
|
(12,390) |
|
(32,364) |
|
Amortization of deferred finance costs, debt discount and commitment fees |
1,311 |
|
3,190 |
|
2,762 |
|
6,561 |
|
Amortization of deferred realized losses on interest rate swaps |
903 |
|
903 |
|
1,796 |
|
1,796 |
|
Interest income |
(3,596) |
|
(120) |
|
(6,319) |
|
(121) |
|
Interest expense |
5,313 |
|
12,889 |
|
11,342 |
|
26,632 |
|
Income taxes |
- |
|
2,262 |
|
- |
|
14,480 |
|
Loss/(gain) on investments and dividend withholding taxes |
(6,438) |
166,373 |
(6,438) |
54,616 |
||||
Loss/(gain) on debt extinguishment |
2,254 |
(22,939) |
2,254 |
(22,939) |
||||
Gain on sale of vessels |
- |
- |
(1,639) |
- |
||||
Stock based compensation |
- |
|
124 |
|
- |
|
248 |
|
Adjusted EBITDA(1) |
|
|
|
|
|
|
|
|
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 |
|
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 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230807745221/en/
For further information:
Company Contact:
Evangelos Chatzis
Chief Financial Officer
Danaos Corporation
Tel.: +30 210 419 6480
E-Mail: cfo@danaos.com
Iraklis Prokopakis
Senior Vice President and Chief Operating Officer
Danaos Corporation
Tel.: +30 210 419 6400
E-Mail: coo@danaos.com
Investor Relations and Financial Media
Rose & Company
Tel. 212-359-2228
E-Mail: danaos@rosecoglobal.com
Source: Danaos Corporation
FAQ
What was Danaos' adjusted net income for Q2 2023?
How does Q2 2023 net income compare to Q2 2022?
What was Danaos' adjusted EBITDA for Q2 2023?
What was Danaos' cash and cash equivalents as of June 30, 2023?
How many shares of its common stock has Danaos repurchased?
What contracts did Danaos enter into?
What agreement did Danaos reach?
What is the contracted revenue backlog?
