Danaos Corporation Reports Third Quarter and Nine Months Ended September 30, 2023
- Adjusted net income of $143.0 million for Q3 2023, compared to $176.9 million for Q3 2022, a decrease of $33.9 million. Net income of $133.2 million for Q3 2023, compared to $66.8 million for Q3 2022, an increase of $66.4 million. Declared a dividend of $0.80 per share for Q3 2023. Reached an agreement to acquire 2 Capesize bulk carriers for $36.6 million, increasing the total number of Capesize bulk carriers in the fleet to 7 with an aggregate capacity of 1,231,071 DWT. Total contracted cash operating revenues increased to $2.5 billion as of September 30, 2023.
- n
- None.
Highlights for the Third Quarter and Nine Months Ended September 30, 2023:
-
Adjusted net income1 of
$143.0 million $7.26 $176.9 million $8.71 $33.9 million $1.45 $23.2 million $1.14 -
Adjusted net income of
$431.6 million $21.54 $569.3 million $27.67 $137.7 million $6.13 $147.1 million $7.15 -
Net income of
$133.2 million $6.76 $66.8 million $3.29 $66.4 million $3.47 $426.4 million $21.28 $406.5 million $19.75 $19.9 million $1.53 -
Adjusted EBITDA1 of
$178.0 million $213.1 million $35.1 million $23.2 million -
Adjusted EBITDA of
$534.4 million $674.7 million $140.3 million $147.1 million -
Cash and cash equivalents were
$306.3 million -
As of September 30, 2023, Net Debt2 was
$111.1 million -
Total liquidity was
$655.0 million -
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 $100 million -
Additional share repurchase program of up to
$100 million -
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 - 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 $103 million $68 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
100.0% for 2023 and90.3% for 2024. -
Danaos has declared a dividend of
$0.80
Three and Nine Months Ended September 30, 2023 Financial Summary - Unaudited
(Expressed in thousands of |
|||||||
|
Three months
|
|
Three months
|
|
Nine months
|
|
Nine months
|
September 30, |
September 30, |
September 30, |
September 30, |
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
Operating revenues |
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
Adjusted net income1 |
|
|
|
|
|
|
|
Earnings per share, diluted |
|
|
|
|
|
|
|
Adjusted earnings per share, diluted1 |
|
|
|
|
|
|
|
Diluted weighted average number of shares (in thousands) |
19,693 |
|
20,318 |
|
20,039 |
|
20,579 |
Adjusted EBITDA1 |
|
|
|
|
|
|
|
| 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
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
In this regard, we decided to increase our quarterly dividend to
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
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 September 30, 2023 reflected:
-
a
$9.5 million -
a
$5.5 million -
a
$3.1 million -
a
$2.7 million
Vessel Operating Expenses
Vessel operating expenses increased by
Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Drydocking and Special Survey Costs.
Depreciation
Depreciation expense decreased by
Amortization of Deferred Drydocking and Special Survey Costs
Amortization of deferred drydocking 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
Interest Expense and Interest Income
Interest expense decreased by
-
a
$5.8 million $549.2 million $422.1 million $971.3 million 2.2% as a result of higher interest rates; -
a
$3.5 million -
a
$2.4 million
As of September 30, 2023, outstanding debt, gross of deferred finance costs, was
Interest income increased by
Loss on investments
We recognized 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 expenses, net were
Income taxes
Income taxes of
Adjusted EBITDA
Adjusted EBITDA decreased by
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
Our adjusted net income amounted to
The
On a non-adjusted basis, our net income amounted to
Operating Revenues
Operating revenues decreased by
Operating revenues for the nine months ended September 30, 2023 reflect:
-
a
$33.2 million -
a
$29.5 million -
a
$14.2 million -
a
$6.1 million
Vessel Operating Expenses
Vessel operating expenses increased by
Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Drydocking and Special Survey Costs.
Depreciation
Depreciation expense decreased by
Amortization of Deferred Drydocking and Special Survey Costs
Amortization of deferred drydocking 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
$16.7 million $696.4 million $462.9 million $1,159.3 million 2.7% as a result of higher interest rates; -
a
$10.0 million -
a
$7.7 million -
a
$2.1 million
As of September 30, 2023, outstanding debt, gross of deferred finance costs, was
Interest income increased by
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 expenses, net were
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 1,570,195 shares of our common stock in the open market for
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
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 (
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
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 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 |
|
|
|
|
|||
|
|||||||
Operating Revenues (in '000s of US Dollars) |
|
|
|
|
|||
Average Gross Daily Charter Rate |
|
|
|
|
|
||
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 |
|
|
|
|
|||
|
|||||||
Operating Revenues (in '000s of US Dollars) |
|
|
|
|
|||
Average Gross Daily Charter Rate |
|
|
|
|
|
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 |
10,100 |
|
2011 |
|
April 2027 |
|
Express |
10,100 |
|
2011 |
|
August 2026 |
|
Express |
10,100 |
|
2011 |
|
April 2027 |
|
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 |
|
September 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 |
|
Merve A (ex ZIM Sao Paolo) |
4,253 |
|
2008 |
|
September 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 2024 |
|
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 |
|
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 |
||||||||
|
Three months
|
|
Three months
|
|
Nine months
|
|
Nine months
|
|
September 30, |
September 30, |
September 30, |
September 30, |
|||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
OPERATING REVENUES |
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
Basic earnings per share |
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
Adjusted Earnings Per Share, diluted |
|
|
|
|
|
|
|
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 |
DANAOS CORPORATION Condensed Consolidated Balance Sheets - Unaudited
(Expressed in thousands of |
||||
|
|
As of |
|
As of |
September 30, |
December 31, |
|||
|
|
2023 |
|
2022 |
ASSETS |
|
|
|
|
CURRENT ASSETS |
|
|
|
|
Cash, cash equivalents and restricted cash |
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
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 |
|
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 |
|
|
|
|
DANAOS CORPORATION Condensed Consolidated Statements of Cash Flows - Unaudited
(Expressed in thousands of |
||||||||
|
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 |
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
DANAOS CORPORATION Reconciliation of Net Income to Adjusted EBITDA - Unaudited
(Expressed in thousands of |
|||||||
|
Three months
|
|
Three months
|
|
Nine months
|
|
Nine months
|
September 30, |
September 30, |
September 30, |
September 30, |
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net income |
|
|
|
|
|
|
|
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) |
|
|
|
|
|
|
|
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/20231113106297/en/
For further information please contact:
Company Contact:
Evangelos Chatzis
Chief Financial Officer
Danaos Corporation
Tel.: +30 210 419 6480
E-Mail: cfo@danaos.com
Investor Relations and Financial Media
Rose & Company
Tel. 212-359-2228
E-Mail: danaos@rosecoglobal.com
Source: Danaos Corporation
FAQ
What are the unaudited financial results reported by Danaos Corporation for Q3 2023?
What dividend did Danaos Corporation declare for Q3 2023?
How many Capesize bulk carriers did Danaos Corporation agree to acquire in September 2023?
What was the total contracted cash operating revenues for Danaos Corporation as of September 30, 2023?
