Danaos Corporation Reports Second Quarter and Half Year Results for the Period Ended June 30, 2021
Danaos Corporation (NYSE: DAC) reported significant financial growth for Q2 and the first half of 2021. Adjusted net income surged to $68.9 million ($3.34/share), up 62.1% YoY, while operating revenues rose 25.3% to $146.4 million. For H1 2021, adjusted net income increased 67.4% to $126.9 million ($6.17/share), with total contracted operating revenues reaching $1.75 billion. The company declared a dividend of $0.50 per share, payable August 30, 2021, while enhancing liquidity through bond redemptions and asset sales. Danaos remains optimistic about future growth opportunities amid a strong containership market.
- Adjusted net income increased by 62.1% YoY to $68.9 million for Q2 2021.
- Total operating revenues rose by 25.3% to $146.4 million for Q2 2021.
- Achieved adjusted EBITDA of $103.7 million, up 29.5% YoY for Q2 2021.
- Total contracted operating revenues of $1.75 billion as of June 30, 2021.
- Dividend of $0.50 per share declared, payable August 30, 2021.
- Acquired full ownership of Gemini, adding approximately $160 million in contracted revenue.
- Total operating expenses increased by $7.5 million in Q2 2021.
- Interest expense rose by 33.8% to $18.2 million in Q2 2021.
Danaos Corporation (“Danaos”) (NYSE: DAC), one of the world’s largest independent owners of containerships, today reported unaudited results for the period ended June 30, 2021.
Highlights for the Second Quarter and Half Year Ended June 30, 2021:
-
Adjusted net income1 of
$68.9 million , or$3.34 per share, for the three months ended June 30, 2021 compared to$42.5 million , or$1.71 per share, for the three months ended June 30, 2020, an increase of62.1% . Adjusted net income1 of$126.9 million , or$6.17 per share, for the six months ended June 30, 2021 compared to$75.8 million , or$3.06 per share, for the six months ended June 30, 2020, an increase of67.4% . -
Operating revenues of
$146.4 million for the three months ended June 30, 2021 compared to$116.8 million for the three months ended June 30, 2020, an increase of25.3% . Operating revenues of$278.5 million for the six months ended June 30, 2021 compared to$223.0 million for the six months ended June 30, 2020, an increase of24.9% . -
Adjusted EBITDA1 of
$103.7 million for the three months ended June 30, 2021 compared to$80.1 million for the three months ended June 30, 2020, an increase of29.5% . Adjusted EBITDA1 of$200.0 million for the six months ended June 30, 2021 compared to$152.0 million for the six months ended June 30, 2020, an increase of31.6% . -
Total contracted operating revenues were
$1.75 billion as of June 30, 2021, including the Gemini vessels that were acquired in July 2021, with charters extending through 2028 and remaining average contracted charter duration of 3.4 years, weighted by aggregate contracted charter hire. -
Charter coverage of
92% for the next 12 months based on current operating revenues and90% in terms of contracted operating days. -
We have collected an aggregate amount of
$69.5 million of mandatory repayment of ZIM and HMM notes plus accrued interest of nearly$10 million in the six months ended June 30, 2021. Additionally, we have sold 2 million ZIM ordinary shares for net proceeds of$76.4 million in the six months ended June 30, 2021. -
Danaos has declared a dividend of
$0.50 per share of common stock for the second quarter of 2021, which is payable on August 30, 2021 to stockholders of record as of August 16, 2021.
Three and Six Months Ended June 30, 2021 |
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Financial Summary - Unaudited |
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(Expressed in thousands of United States dollars, except per share amounts) |
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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, |
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2021 |
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2020 |
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2021 |
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2020 |
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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) |
20,599 |
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24,789 |
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20,557 |
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24,789 |
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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. |
Danaos’ CEO Dr. John Coustas commented:
"The containership market has maintained its positive momentum, which is reflected in increasing rates for both containers and vessel charters. Danaos is continuing to secure charters for its vessels for periods of between three and five years. It is noteworthy that some of these charters do not even begin until the middle of 2022. The market appears to be in short supply until at least the end of next year, and we have strong leverage to this dynamic.
The pandemic is continuing to cause inefficiencies in the transportation chain, and there is no obvious indication that conditions will normalize in the near term. Travel bans or restrictions are continuing to impede our efforts to normalize crew changes. Despite considerable difficulty in joining and repatriation, our vessel schedules have not been affected.
Our liquidity was enhanced in the second quarter by a total of
Financially, Danaos is in a very strong position, with cash and marketable securities totaling over
Further we sourced an opportunity to buy six modern eco-design 5,460 TEU vessels built in 2014 and 2015 at a significant discount to their charter free values. These vessels are tied to below market, though still profitable, charters expiring from mid-2022 to mid-2024. They are of similar specification to newbuilding designs offered today, and we expect to recharter them at levels significantly higher than their existing charters. We were able to fund these growth opportunities using cash on our balance sheet, and we will evaluate whether we will increase our leverage with respect to these acquisitions moving forward.
Once again, the market dynamics are in our favor, and we will continue to deliver the best results possible for our shareholders."
Three months ended June 30, 2021 compared to the three months ended June 30, 2020
During the three months ended June 30, 2021, Danaos had an average of 60.0 containerships compared to 57.1 containerships during the three months ended June 30, 2020. Our fleet utilization for the three months ended June 30, 2021 was
Our adjusted net income amounted to
The increase of
On a non-adjusted basis, our net income amounted to
Operating Revenues
Operating revenues increased by
Operating revenues for the three months ended June 30, 2021 reflect:
-
a
$23.6 million increase in revenues in the three months ended June 30, 2021 compared to the three months ended June 30, 2020 mainly as a result of higher charter rates and improved fleet utilization; and -
a
$6.0 million increase in revenues in the three months ended June 30, 2021 compared to the three months ended June 30, 2020 due to the incremental revenue generated by five vessels acquired in 2020.
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 increased by
Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs decreased by
General and Administrative Expenses
General and administrative expenses increased by
Other Operating Expenses
Other Operating Expenses include Voyage Expenses.
Voyage Expenses
Voyage expenses increased by
Interest Expense and Interest Income
Interest expense increased by
-
a
$2.2 million improvement in interest expense because of a decrease in our average indebtedness by$69.6 million between the two periods (average indebtedness of$1,465.3 million in the three months ended June 30, 2021, compared to average indebtedness of$1,534.9 million in the three months ended June 30, 2020) and a decrease in our debt service cost by approximately0.36% ; -
a reduced by
$6.7 million recognition through our income statement of accumulated accrued interest that had been accrued in 2018 in relation to two of our credit facilities that were refinanced on April 12, 2021. As a result of the refinancing, the recognition of such accumulated interest has been decreased; and -
a
$0.1 million increase in the amortization of deferred finance costs and debt discount related to our debt.
Net proceeds from issuance of our
As of June 30, 2021, our outstanding bank debt, gross of deferred finance costs, was
Interest income increased by
Gain on investments
The gain on investments of
Gain on debt extinguishment
The gain on debt extinguishment of
Other finance costs, net
Other finance costs, net decreased by
Equity income on investments
Equity income on investments increased by
Loss on derivatives
Amortization of deferred realized losses on interest rate swaps remained stable at
Other income, net
Other income, net was
Adjusted EBITDA
Adjusted EBITDA increased by
Six months ended June 30, 2021 compared to the six months ended June 30, 2020
During the six months ended June 30, 2021, Danaos had an average of 60.0 containerships compared to 56.4 containerships during the six months ended June 30, 2020. Our fleet utilization for the six months ended June 30, 2021 was
Our adjusted net income amounted to
The increase of
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, 2021 reflect:
-
a
$40.9 million increase in revenues in the six months ended June 30, 2021 compared to the six months ended June 30, 2020 mainly as a result of higher charter rates and improved fleet utilization; and -
a
$14.6 million increase in revenues in the six months ended June 30, 2021 compared to the six months ended June 30, 2020 due to the incremental revenue generated by five vessels acquired in 2020.
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 increased by
Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs decreased by
General and Administrative Expenses
General and administrative expenses increased by
Other Operating Expenses
Other Operating Expenses include Voyage Expenses.
Voyage Expenses
Voyage expenses increased by
Interest Expense and Interest Income
Interest expense increased by
-
a
$7.5 million improvement in interest expense because of a decrease in our debt service cost by approximately0.94% , while our average indebtedness remained stable at$1,539.5 million in the six months ended June 30, 2021 compared to the six months ended June 30, 2020; -
a reduced by
$10.0 million recognition through our income statement of accumulated accrued interest that had been accrued in 2018 in relation to two of our credit facilities that were refinanced on April 12, 2021. As a result of the refinancing, the recognition of such accumulated interest has been decreased; and -
a
$0.9 million increase in the amortization of deferred finance costs and debt discount related to our debt.
Net proceeds from issuance of our
As of June 30, 2021, our outstanding bank debt, gross of deferred finance costs, was
Interest income increased by
Gain on investments
The gain on investments of
Gain on debt extinguishment
The gain on debt extinguishment of
Other finance costs, net
Other finance costs, net decreased by
Equity income on investments
Equity income on investments increased by
Loss on derivatives
Amortization of deferred realized losses on interest rate swaps remained stable at
Other income, net
Other income, net was
Adjusted EBITDA
Adjusted EBITDA increased by
Dividend Payment
Danaos has declared a dividend of
Recent Developments
As previously announced, on July 1, 2021, we exercised our option to acquire the remaining equity interest in Gemini. The purchase price for the
As previously announced, we have entered into an agreement to acquire six 5,500 TEU vessels for a gross purchase price amounting to
Conference Call and Webcast
On Tuesday, August 3, 2021 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 August 10, 2021 by dialing 1 877 344 7529 (US Toll Free Dial In) or 1-412-317-0088 (Standard International Dial In) and using 10159187# 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 65 containerships aggregating 403,793 TEUs ranks Danaos among the largest containership charter owners in the world based on total TEU capacity. On July 7, 2021, Danaos entered into an agreement to acquire an additional 6 containerships aggregating 32,796 TEUs, which are expected to be delivered by October 15, 2021. Our fleet is chartered to many of the world's largest liner companies on fixed-rate charters. 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 the impact 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 cargo, the ability and willingness of charterers to perform their obligations to us, charter rates for containerships, shipyards performing scrubber installations, drydocking and repairs, changing vessel crews and availability of financing; Danaos’ ability to achieve the expected benefits of the 2021 debt refinancing and comply with the terms of its new credit facilities and other financing agreements; 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, 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, 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 15 unscheduled off-hire days in the three months ended June 30, 2021. 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 |
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Second Quarter |
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|
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2021 |
2021 |
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Total |
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Ownership Days |
5,400 |
5,460 |
10,860 |
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Less Off-hire Days: |
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Scheduled Off-hire Days |
(22) |
(33) |
(55) |
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Other Off-hire Days |
(51) |
(15) |
(66) |
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Operating Days |
5,327 |
5,412 |
10,739 |
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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 |
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Second Quarter |
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2020 |
2020 |
|
Total |
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Ownership Days |
5,073 |
5,193 |
10,266 |
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Less Off-hire Days: |
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Scheduled Off-hire Days |
(336) |
(60) |
(396) |
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Other Off-hire Days |
(104) |
(92) |
(196) |
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Operating Days |
4,633 |
5,041 |
9,674 |
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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 as of July 31, 2021:
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 |
|
May 2024 |
|
Hyundai Respect |
13,100 |
|
2012 |
|
March 2024 |
|
Hyundai Honour |
13,100 |
|
2012 |
|
February 2024 |
|
Express Rome |
10,100 |
|
2011 |
|
February 2022 |
|
Express Berlin |
10,100 |
|
2011 |
|
April 2022 |
|
Express Athens |
10,100 |
|
2011 |
|
February 2022 |
|
Le Havre |
9,580 |
|
2006 |
|
April 2023 |
|
Pusan C |
9,580 |
|
2006 |
|
March 2023 |
|
Bremen |
9,012 |
|
2009 |
|
December 2022 |
|
C Hamburg |
9,012 |
|
2009 |
|
January 2023 |
|
Niledutch Lion |
8,626 |
|
2008 |
|
May 2026 |
|
Charleston |
8,533 |
|
2005 |
|
February 2026 |
|
CMA CGM Melisande |
8,530 |
|
2012 |
|
November 2024 |
|
CMA CGM Attila |
8,530 |
|
2011 |
|
April 2024 |
|
CMA CGM Tancredi |
8,530 |
|
2011 |
|
May 2024 |
|
CMA CGM Bianca |
8,530 |
|
2011 |
|
July 2024 |
|
CMA CGM Samson |
8,530 |
|
2011 |
|
September 2024 |
|
America |
8,468 |
|
2004 |
|
February 2023 |
|
Europe |
8,468 |
|
2004 |
|
March 2023 |
|
Phoebe |
8,463 |
|
2005 |
|
April 2022 |
|
CMA CGM Moliere |
6,500 |
|
2009 |
|
April 2022 |
|
CMA CGM Musset |
6,500 |
|
2010 |
|
October 2022 |
|
CMA CGM Nerval |
6,500 |
|
2010 |
|
December 2022 |
|
CMA CGM Rabelais |
6,500 |
|
2010 |
|
February 2023 |
|
CMA CGM Racine |
6,500 |
|
2010 |
|
March 2023 |
|
YM Mandate |
6,500 |
|
2010 |
|
January 2028 |
|
YM Maturity |
6,500 |
|
2010 |
|
April 2028 |
|
Zim Savannah (ex Performance) |
6,402 |
|
2002 |
|
May 2024 |
|
Dimitra C |
6,402 |
|
2002 |
|
January 2023 |
|
Seattle C |
4,253 |
|
2007 |
|
October 2024 |
|
Vancouver |
4,253 |
|
2007 |
|
November 2024 |
|
Derby D |
4,253 |
|
2004 |
|
January 2027 |
|
Tongala (ex ANL Tongala) |
4,253 |
|
2004 |
|
January 2023 |
|
Rio Grande |
4,253 |
|
2008 |
|
November 2024 |
|
ZIM Sao Paolo |
4,253 |
|
2008 |
|
February 2023 |
|
ZIM Kingston |
4,253 |
|
2008 |
|
April 2023 |
|
ZIM Monaco |
4,253 |
|
2009 |
|
July 2022 |
|
Dalian (ex ZIM Dalian) |
4,253 |
|
2009 |
|
November 2022 |
|
ZIM Luanda |
4,253 |
|
2009 |
|
August 2025 |
|
Dimitris C |
3,430 |
|
2001 |
|
January 2022 |
|
Express Black Sea |
3,400 |
|
2011 |
|
January 2022 |
|
Express Spain |
3,400 |
|
2011 |
|
January 2022 |
|
Express Argentina |
3,400 |
|
2010 |
|
May 2023 |
|
Express Brazil |
3,400 |
|
2010 |
|
June 2025 |
|
Express France |
3,400 |
|
2010 |
|
September 2025 |
|
Singapore |
3,314 |
|
2004 |
|
May 2024 |
|
Colombo |
3,314 |
|
2004 |
|
December 2021 |
|
Zebra |
2,602 |
|
2001 |
|
November 2024 |
|
Amalia C |
2,452 |
|
1998 |
|
January 2023 |
|
Artotina (ex Danae C) |
2,524 |
|
2001 |
|
February 2022 |
|
Advance |
2,200 |
|
1997 |
|
January 2022 |
|
Future |
2,200 |
|
1997 |
|
November 2021 |
|
Sprinter |
2,200 |
|
1997 |
|
December 2021 |
|
Stride |
2,200 |
|
1997 |
|
February 2022 |
|
Progress C |
2,200 |
|
1998 |
|
December 2021 |
|
Bridge |
2,200 |
|
1998 |
|
December 2024 |
|
Highway |
2,200 |
|
1998 |
|
August 2022 |
|
Vladivostok |
2,200 |
|
1997 |
|
October 2021 |
|
|
|
|
|
|
|
|
Belita (2) |
8,533 |
|
2006 |
|
July 2026 |
|
Catherine C (2) |
6,422 |
|
2001 |
|
January 2023 |
|
Leo C (2) |
6,422 |
|
2002 |
|
August 2022 |
|
Suez Canal(2) |
5,610 |
|
2002 |
|
March 2023 |
|
Genoa(2) |
5,544 |
|
2002 |
|
November 2024 |
|
|
|
|
|
|
|
|
Wide Alpha (3) |
5,466 |
|
2014 |
|
March 2024 |
|
Wide Bravo(3) |
5,466 |
|
2014 |
|
March 2022 |
|
Maersk Euphrates (3) |
5,466 |
|
2014 |
|
April 2024 |
|
Wide Hotell(3) |
5,466 |
|
2015 |
|
May 2024 |
|
Wide India (3) |
5,466 |
|
2015 |
|
July 2022 |
|
Wide Juliet(3) |
5,466 |
|
2015 |
|
June 2023 |
(1) |
Earliest date charters could expire. Some charters include options to extend their terms. |
|
(2) |
Vessels acquired by Gemini Shipholdings Corporation, in which Danaos Corporation held a |
|
(3) |
Vessels contracted by the Company to be delivered with the attached charters from August 10, 2021 to October 15, 2021.
|
DANAOS CORPORATION |
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Condensed Consolidated Statements of Income - Unaudited |
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(Expressed in thousands of United States dollars, except per share amounts) |
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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, |
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|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
OPERATING REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
Vessel operating expenses |
(32,940) |
|
(28,568) |
|
(64,018) |
|
(54,570) |
|
Depreciation & amortization |
(28,644) |
|
(28,199) |
|
(56,952) |
|
(55,090) |
|
General & administrative |
(7,130) |
|
(6,013) |
|
(18,025) |
|
(11,853) |
|
Other operating expenses |
(4,966) |
|
(3,289) |
|
(9,194) |
|
(7,335) |
|
Income From Operations |
72,754 |
|
50,755 |
|
130,363 |
|
94,172 |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME/(EXPENSES) |
|
|
|
|
|
|
|
|
Interest income |
9,531 |
|
1,588 |
|
11,509 |
|
3,302 |
|
Interest expense |
(18,204) |
(13,645) |
(33,315) |
(29,958) |
||||
Gain on investments |
196,290 |
- |
444,165 |
- |
||||
Gain on debt extinguishment |
111,616 |
- |
111,616 |
- |
||||
Other finance expenses |
(582) |
(1,038) |
(1,034) |
(1,660) |
||||
Equity income/(loss) on investments |
2,162 |
|
1,720 |
|
3,965 |
|
3,265 |
|
Other income, net |
173 |
|
19 |
|
4,144 |
|
270 |
|
Realized loss on derivatives |
(903) |
|
(903) |
|
(1,796) |
|
(1,806) |
|
Total Other Income/(Expenses), net |
300,083 |
|
(12,259) |
|
539,254 |
|
(26,587) |
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
Basic earnings per share |
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
|
|
|
|
|
|
|
Basic weighted average number of common shares (in thousands of shares) |
20,354 |
24,573 |
20,323 |
|
24,573 |
|||
Diluted weighted average number of common shares (in thousands of shares) |
20,599 |
24,789 |
20,557 |
|
24,789 |
|||
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, |
|||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Net income |
|
|
|
|
|
|||
Gain on investments |
(196,290) |
|
- |
(444,165) |
- |
|||
Gain on debt extinguishment |
(111,616) |
|
- |
(111,616) |
- |
|||
Amortization of financing fees, debt discount & finance fees accrued |
3,929 |
|
3,998 |
8,957 |
8,190 |
|||
Stock based compensation |
- |
|
- |
4,078 |
- |
|||
Adjusted Net Income |
|
|
|
|
|
|||
Adjusted Earnings Per Share, diluted |
|
|
|
|
|
|||
Diluted weighted average number of shares (in thousands) |
20,599 |
|
24,789 |
20,557 |
24,789 |
|||
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 six months ended June 30, 2021 and 2020. 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 |
June 30, |
December 31, |
|||
|
|
2021 |
|
2020 |
ASSETS |
|
|
|
|
CURRENT ASSETS |
|
|
|
|
Cash and cash equivalents |
|
|
|
|
Accounts receivable, net |
|
7,112 |
|
7,556 |
Other current assets |
|
46,956 |
|
45,229 |
|
|
348,486 |
|
118,448 |
NON-CURRENT ASSETS |
|
|
|
|
Fixed assets, net |
|
2,429,647 |
|
2,479,937 |
Deferred charges, net |
|
13,440 |
|
17,339 |
Investments in affiliates |
|
19,238 |
|
15,273 |
Other non-current assets |
|
389,319 |
|
83,383 |
|
|
2,851,644 |
|
2,595,932 |
TOTAL ASSETS |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
Long-term debt, current portion |
|
|
|
|
Accumulated accrued interest, current portion |
|
5,854 |
|
18,036 |
Long-term leaseback obligations, current portion |
|
63,316 |
|
24,515 |
Accounts payable, accrued liabilities & other current liabilities |
|
66,204 |
|
41,472 |
|
|
228,824 |
|
239,685 |
LONG-TERM LIABILITIES |
|
|
|
|
Long-term debt, net |
|
1,039,900 |
|
1,187,345 |
Accumulated accrued interest, net of current portion |
|
27,450 |
|
136,433 |
Long-term leaseback obligations, net |
|
168,542 |
|
95,585 |
Other long-term liabilities |
|
22,221 |
|
19,755 |
|
|
1,258,113 |
|
1,439,118 |
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
Common stock |
|
206 |
|
204 |
Additional paid-in capital |
|
760,869 |
|
755,390 |
Accumulated other comprehensive loss |
|
(73,851) |
|
(86,669) |
Retained earnings |
|
1,025,969 |
|
366,652 |
|
|
1,713,193 |
|
1,035,577 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
DANAOS CORPORATION |
||||||||
Condensed Consolidated Statements of Cash Flows - Unaudited |
||||||||
(Expressed in thousands of United States dollars) |
||||||||
|
Three months ended |
|
Three months ended |
|
Six months ended |
|
Six months ended |
|
June 30, |
June 30, |
June 30, |
June 30, |
|||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Operating Activities: |
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation |
26,099 |
|
25,258 |
|
51,898 |
|
49,839 |
|
Amortization of deferred drydocking & special survey costs, finance cost, debt discount and other finance fees accrued |
6,474 |
|
7,469 |
|
14,011 |
|
13,971 |
|
PIK interest |
84 |
|
743 |
|
726 |
|
1,550 |
|
Gain on investments |
(196,290) |
|
- |
|
(444,165) |
|
- |
|
Gain on debt extinguishment |
(111,616) |
|
- |
|
(111,616) |
|
- |
|
Payments for drydocking/special survey |
(248) |
|
(8,530) |
|
(1,155) |
|
(13,380) |
|
Amortization of deferred realized losses on cash flow interest rate swaps |
903 |
|
903 |
|
1,796 |
|
1,806 |
|
Equity (income)/loss on investments |
(2,162) |
|
(1,720) |
|
(3,965) |
|
(3,265) |
|
Stock based compensation |
570 |
|
298 |
|
5,479 |
|
596 |
|
Accounts receivable |
231 |
|
(4,631) |
|
444 |
|
(5,407) |
|
Other assets, current and non-current |
644 |
|
1,200 |
|
1,646 |
|
(689) |
|
Accounts payable and accrued liabilities |
7,068 |
|
3,594 |
|
10,346 |
|
8,937 |
|
Other liabilities, current and long-term |
(109) |
|
(1,639) |
|
(2,319) |
|
(4,675) |
|
Net Cash provided by Operating Activities |
104,485 |
|
61,441 |
|
192,743 |
|
116,868 |
|
|
|
|
|
|
|
|
|
|
Investing Activities: |
|
|
|
|
|
|
|
|
Vessel additions and advances |
(575) |
|
(56,500) |
|
(1,811) |
|
(98,746) |
|
Investments |
143,485 |
|
- |
|
145,877 |
|
(75) |
|
Net Cash provided by/(used in) Investing Activities |
142,910 |
|
(56,500) |
|
144,066 |
|
(98,821) |
|
|
|
|
|
|
|
|
|
|
Financing Activities: |
|
|
|
|
|
|
|
|
Proceeds from sale-leaseback of vessels |
135,000 |
|
139,080 |
|
135,000 |
|
139,080 |
|
Proceeds from long-term debt |
810,925 |
|
23,400 |
|
1,105,311 |
|
23,400 |
|
Payments of leaseback obligations |
(15,259) |
|
(138,189) |
|
(21,175) |
|
(142,065) |
|
Debt repayment |
(1,223,176) |
|
(32,539) |
|
(1,295,025) |
|
(65,176) |
|
Dividends paid |
(10,298) |
|
- |
|
(10,298) |
|
- |
|
Payments of accumulated accrued interest |
(2,656) |
|
(7,173) |
|
(7,358) |
|
(15,502) |
|
Finance costs |
(10,021) |
|
(1,584) |
|
(14,509) |
|
(11,999) |
|
Net Cash used in Financing Activities |
(315,485) |
|
(17,005) |
|
(108,054) |
|
(72,262) |
|
Net Increase/(Decrease) in cash and cash equivalents |
(68,090) |
|
(12,064) |
|
228,755 |
|
(54,215) |
|
Cash and cash equivalents, beginning of period |
362,508 |
|
97,019 |
|
65,663 |
|
139,170 |
|
Cash and cash equivalents, end of period |
|
|
|
|
|
|
|
|
DANAOS CORPORATION |
||||||||
Reconciliation of Net Income to Adjusted EBITDA - Unaudited |
||||||||
(Expressed in thousands of United States dollars) |
||||||||
|
Three months ended |
|
Three months ended |
|
Six months ended |
|
Six months ended |
|
June 30, |
June 30, |
June 30, |
June 30, |
|||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Net income |
|
|
|
|
|
|
|
|
Depreciation |
26,099 |
|
25,258 |
|
51,898 |
|
49,839 |
|
Amortization of deferred drydocking & special survey costs |
2,545 |
|
2,941 |
|
5,054 |
|
5,251 |
|
Amortization of deferred finance costs, debt discount and other finance fees accrued |
3,929 |
|
3,998 |
|
8,957 |
|
8,190 |
|
Amortization of deferred realized losses on interest rate swaps |
903 |
|
903 |
|
1,796 |
|
1,806 |
|
Interest income |
(9,531) |
|
(1,588) |
|
(11,509) |
|
(3,302) |
|
Interest expense |
14,290 |
|
9,767 |
|
24,507 |
|
22,026 |
|
Gain on investments |
(196,290) |
|
- |
|
(444,165) |
|
- |
|
Gain on debt extinguishment |
(111,616) |
|
- |
|
(111,616) |
|
- |
|
Stock based compensation |
570 |
|
298 |
|
5,479 |
|
596 |
|
Adjusted EBITDA(1) |
|
|
|
|
|
|
|
|
1) |
Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of deferred finance costs, debt discount and other finance fees accrued, amortization of deferred realized losses on interest rate swaps, gain on investments, gain on debt extinguishment 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 six months ended June 30, 2021 and 2020. 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/20210802005702/en/
FAQ
What were Danaos Corporation's Q2 2021 earnings results?
How much did Danaos Corporation's operating revenues increase in Q2 2021?
What is the dividend declared by Danaos Corporation for Q2 2021?
What financial position did Danaos Corporation report for H1 2021?
What recent acquisitions has Danaos Corporation made?
