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Danaos Corporation Reports Third Quarter and Nine Months Results for the Period Ended September 30, 2024

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Danaos reported Q3 2024 results with operating revenues of $256.2 million, up 7.1% from Q3 2023. Net income was $123.0 million ($6.30 per diluted share), compared to $133.2 million in Q3 2023. The company took delivery of 3 newbuilding containerships and has 14 more vessels on order. Total contracted cash operating revenues stand at $3.3 billion, with fleet charter coverage at 100% for 2024, 94% for 2025, and 73% for 2026. Danaos increased its quarterly dividend by 6.25% to $0.85 per share and has repurchased $123.2 million worth of shares under its buyback program.

Danaos ha riportato i risultati del terzo trimestre 2024 con entrate operative di 256,2 milioni di dollari, in aumento del 7,1% rispetto al terzo trimestre 2023. Il reddito netto è stato di 123,0 milioni di dollari (6,30 dollari per azione diluita), rispetto ai 133,2 milioni di dollari del terzo trimestre 2023. L'azienda ha ricevuto 3 nuove navi portacontainer e ha in ordine altre 14 navi. Le entrate operative contrattate totali ammontano a 3,3 miliardi di dollari, con una copertura dei noleggi della flotta al 100% per il 2024, al 94% per il 2025 e al 73% per il 2026. Danaos ha aumentato il proprio dividendo trimestrale del 6,25% a 0,85 dollari per azione e ha riacquistato azioni per un valore di 123,2 milioni di dollari nell'ambito del proprio programma di buyback.

Danaos informó sobre los resultados del tercer trimestre de 2024, con ingresos operativos de 256.2 millones de dólares, un aumento del 7.1% en comparación con el tercer trimestre de 2023. El ingreso neto fue de 123.0 millones de dólares (6.30 dólares por acción diluida), en comparación con los 133.2 millones de dólares del tercer trimestre de 2023. La empresa recibió 3 nuevos buques portacontenedores y tiene 14 más en pedido. Los ingresos operativos contratados totales ascienden a 3.3 mil millones de dólares, con una cobertura de flete del 100% para 2024, 94% para 2025 y 73% para 2026. Danaos aumentó su dividendo trimestral en un 6.25% a 0.85 dólares por acción y ha recomprado acciones por un valor de 123.2 millones de dólares a través de su programa de recompra.

Danaos는 2024년 3분기 결과를 보고했으며, 운영 수익은 2억 5620만 달러로, 2023년 3분기 대비 7.1% 증가했습니다. 순이익은 1억 2300만 달러 (희석 주당 6.30 달러)로, 2023년 3분기의 1억 3320만 달러와 비교됩니다. 회사는 3척의 신조 컨테이너선 인도를 받았으며, 추가로 14척의 선박이 주문 중입니다. 총 계약된 현금 운영 수익은 33억 달러에 달하며, 2024년에는 100%, 2025년에는 94%, 2026년에는 73%의 선대 차터 커버리지를 보장합니다. Danaos는 분기 배당금을 6.25% 인상하여 주당 0.85달러로 조정하였고, 자사주 매입 프로그램을 통해 1억 2320만 달러 상당의 주식을 매입했습니다.

Danaos a publié ses résultats pour le troisième trimestre 2024, avec des revenus opérationnels de 256,2 millions de dollars, en hausse de 7,1% par rapport au troisième trimestre 2023. Le bénéfice net s'élevait à 123,0 millions de dollars (6,30 dollars par action diluée), contre 133,2 millions de dollars lors du troisième trimestre 2023. L'entreprise a pris livraison de 3 nouveaux porte-conteneurs et a 14 autres navires en commande. Les revenus opérationnels contractés totaux s'élèvent à 3,3 milliards de dollars, avec une couverture de charte de flotte de 100% pour 2024, 94% pour 2025 et 73% pour 2026. Danaos a augmenté son dividende trimestriel de 6,25% à 0,85 dollar par action et a racheté pour 123,2 millions de dollars d'actions dans le cadre de son programme de rachat.

Danaos hat die Ergebnisse des dritten Quartals 2024 bekannt gegeben, mit betrieblichen Einnahmen von 256,2 Millionen Dollar, einem Anstieg von 7,1% im Vergleich zum dritten Quartal 2023. Der Nettogewinn betrug 123,0 Millionen Dollar (6,30 Dollar pro verwässerter Aktie), verglichen mit 133,2 Millionen Dollar im dritten Quartal 2023. Das Unternehmen hat 3 neue Containerschiffe in Empfang genommen und hat noch 14 weitere Schiffe bestellt. Die insgesamt vertraglich gesicherten Betriebseinnahmen belaufen sich auf 3,3 Milliarden Dollar, mit einer Flottencharterabdeckung von 100% für 2024, 94% für 2025 und 73% für 2026. Danaos hat seine vierteljährliche Dividende um 6,25% auf 0,85 Dollar pro Aktie erhöht und Aktien im Wert von 123,2 Millionen Dollar im Rahmen seines Rückkaufprogramms zurückgekauft.

Positive
  • Operating revenues increased 7.1% YoY to $256.2 million
  • Strong contracted revenue backlog of $3.3 billion
  • High fleet utilization at 97.7% for container vessels
  • Increased quarterly dividend by 6.25% to $0.85 per share
  • Credit rating upgrade to Ba1 by Moody's
Negative
  • Net income decreased to $123.0 million from $133.2 million YoY
  • Operating expenses increased by $31.1 million
  • Container vessel segment revenues decreased by 1.5% to $235.6 million
  • Lower charter rates resulted in $17.9 million revenue decrease

Insights

The Q3 2024 results show mixed performance with some concerning trends. Operating revenues increased by 7.1% to $256.2 million, but adjusted net income declined to $126.8 million ($6.50 per share) from $143.0 million year-over-year. The container segment saw a 1.5% revenue decline despite fleet expansion, indicating pressure on charter rates.

Key positives include strong contract coverage (100% for 2024, 94% for 2025) and solid liquidity of $784.5 million. The $3.3 billion contracted revenue backlog provides stability. However, rising costs are a concern - vessel operating expenses increased significantly and debt levels rose to $689.5 million from $417.4 million YoY.

The increased quarterly dividend of $0.85 per share and ongoing share buybacks ($123.2 million completed) demonstrate financial strength, but investors should monitor rising costs and leverage ratios carefully.

ATHENS, Greece, Nov. 12, 2024 /PRNewswire/ -- Danaos Corporation ("Danaos") (NYSE: DAC), one of the world's largest independent owners of container vessels and drybulk vessels, today reported unaudited results for the period ended September 30, 2024.

Highlights for the Third Quarter and Nine Months Ended September 30, 2024:

Financial Summary

Three Months Ended September 30, 2024 and Three Months Ended September 30, 2023

 Unaudited

(Expressed in thousands of United States dollars, except as otherwise stated)



Three Months Ended



Three Months Ended



September 30, 2024



September 30, 2023

Financial & Operating Metrics


Container
Vessels


Drybulk
Vessels


Other


Total



Container
Vessels


Drybulk
Vessels


Other


Total

Operating Revenues


$235,570


$20,606


-


$256,176



$239,215


-


-


$239,215

Voyage Expenses, excl. commissions


$757


$(8,019)


-


$(7,262)



$(479)


-


-


$(479)

Time Charter Equivalent Revenues (1)


$236,327


$12,587


-


$248,914



$238,736


-


-


$238,736

Net income/(loss)


$124,102


$62


$(1,168)


$122,996



$142,173


$(59)


$(8,958)


$133,156

Adjusted net income / (loss) (2)


$125,143


$62


$1,640


$126,845



$142,647


$(59)


$375


$142,963

Earnings per share, basic








$6.36









$6.76

Earnings per share, diluted








$6.30









$6.76

Adjusted earnings per share, diluted (2)








$6.50









$7.26

Operating Days


6,387


778


-





6,115


-


-



Time Charter Equivalent $/day (1)


$37,001


$16,179


-





$39,041


-


-



Ownership days


6,540


913


-





6,256


-


-



Average number of vessels


71.1


9.9


-





68.0


-


-



Fleet Utilization


97.7 %


85.2 %


-





97.7 %


-


-



Adjusted EBITDA (2)


$173,454


$3,826


$1,617


$178,897



$177,701


$(49)


$375


$178,027

Consolidated Balance Sheet

& Leverage Metrics 

As of September 30,2024







As of December 31, 2023

Cash and cash equivalents




$384,336









$271,809

Availability under Revolving Credit Facility




$303,750









$337,500

Marketable securities(3)




$96,423









-

Total cash liquidity & marketable securities(4)




$784,509









$609,309

Debt, gross of deferred finance costs




$689,476









$410,516

Net Debt (5)




$305,140









$138,707

LTM Adjusted EBITDA (6)




$705,497









$707,002

Net Debt / LTM Adjusted EBITDA




0.43x









0.20x




















1. Time charter equivalent revenues and time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided in the appendix.

2. Adjusted net income/(loss), adjusted earnings per share and adjusted EBITDA are non-GAAP measures. Refer to the reconciliation of net income to adjusted net income and adjusted earnings per share; and net income to adjusted EBITDA provided below.

3. Marketable securities refer to fair value of 4,070,214 shares of common stock of SBLK on September 30, 2024.

4. Total cash liquidity & marketable securities includes: (i) cash and cash equivalents, (ii) availability under our Revolving Credit Facility and (iii) marketable securities.

5. Net Debt is defined as total debt gross of deferred finance costs less cash and cash equivalents

6. Last twelve months Adjusted EBITDA. Refer to the reconciliation provided below.


For management purposes, the Company is organized based on operating revenues generated from container vessels and dry-bulk vessels and has two reporting segments: (1) a container vessels segment and (2) a dry-bulk vessels segment. The Company measures segment performance based on net income. Items included in the applicable segment's net income are directly allocated to the extent that the items are directly or indirectly attributable to the segments. With regards to the items that are allocated by indirect calculations, their allocation is commensurate to the utilization of key resources. The Other column includes components that are not allocated to any of the Company's reportable segments and includes investments in an affiliate accounted for using the equity method of accounting and investments in marketable securities.

Financial Summary

Nine Months Ended September 30, 2024 and Nine Months Ended September 30, 2023

 Unaudited

(Expressed in thousands of United States dollars, except as otherwise stated)



Nine Months Ended



Nine Months Ended



September 30, 2024



September 30, 2023

Financial & Operating Metrics


Container
Vessels


Drybulk
Vessels


Other


Total



Container
Vessels


Drybulk
Vessels


Other


Total

Operating Revenues


$699,567


$56,364


-


$755,931



$724,268


-


-


$724,268

Voyage Expenses, excl. commissions


$(179)


$(22,115)


-


$(22,294)



$(1,225)


-


-


$(1,225)

Time Charter Equivalent Revenues (1)


$699,388


$34,249


-


$733,637



$723,043


-


-


$723,043

Net income/(loss)


$396,144


$2,689


$15,813


$414,646



$432,283


$(59)


$(5,846)


$426,378

Adjusted net income / (loss) (2)


$391,062


$2,689


$5,418


$399,169



$434,633


$(59)


$(2,951)


$431,623

Earnings per share, basic








$21.41









$21.28

Earnings per share, diluted








$21.22









$21.28

Adjusted earnings per share, diluted (2)








$20.43









$21.54

Operating Days


18,494


1,978


-





18,177


-


-



Time Charter Equivalent $/day (1)


$37,817


$17,315


-





$39,778


-


-



Ownership days


18,978


2,244


-





18,594


-


-



Average number of vessels


69.3


8.2


-





68.1


-


-



Fleet Utilization


97.4 %


88.1 %


-





97.8 %


-


-



Adjusted EBITDA (2)


$516,763


$10,730


$5,395


$532,888



$537,393


$(49)


$(2,951)


$534,393


1. Time charter equivalent revenues and time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided in the appendix.

2. Adjusted net income/(loss), adjusted earnings per share and adjusted EBITDA are non-GAAP measures. Refer to the reconciliation of net income to adjusted net income and adjusted earnings per share; and net income to adjusted EBITDA provided below.


  • During the third quarter of 2024 and through the date of this release, we took delivery of another 3 newbuilding containerships, namely one 7,165 TEU vessel and two 8,010 TEU vessels which have commenced their three-year charters. In total, we have taken delivery of 6 newbuilding containerships in 2024.
  • As a result, our remaining orderbook currently consists of a further 14 newbuilding containership vessels with an aggregate capacity of 115,834 TEU with expected deliveries of two vessels in 2025, three vessels in 2026, seven vessels in 2027 and two vessels in 2028. All the vessels in our orderbook are designed with the latest eco characteristics, will be methanol fuel ready, fitted with open loop scrubbers and Alternative Maritime Power (AMP) units and will be built in accordance with the latest requirements of the International Maritime Organization (IMO) in relation to Tier III emission standards and Energy Efficiency Design Index (EEDI) Phase III.
  • We have now secured multi-year charter arrangements for all of the vessels in our newbuilding orderbook with an average charter duration of approximately 4.8 years weighted by aggregate contracted charter hire.
  • Over the past two months, we added approximately $308 million to our contracted revenue backlog through a combination of new charters and charter extensions for 16 of our container vessels.
  • As a result, total contracted cash operating revenues, on the basis of concluded charter contracts through the date of this release, currently stand at $3.3 billion, including newbuildings. The remaining average contracted charter duration for our containership fleet is 3.4 years, weighted by aggregate contracted charter hire.
  • Contracted operating days charter coverage for our container vessel fleet is currently 100% for 2024, 94% for 2025 and 73% for 2026. This includes newbuildings based on their scheduled delivery dates.
  • We took delivery of all of our contracted capesize drybulk carriers by taking delivery of two vessels in the second quarter of 2024 and one vessel in July 2024. As a result, our capesize drybulk fleet currently stands at 10 vessels with an aggregate capacity of approximately 1.8 million DWT.
  • As of the date of this release, Danaos has repurchased a total of 1,893,803 shares of its common stock in the open market for $123.2 million under its $200 million authorized share repurchase program that was originally introduced in June 2022 and upsized in November 2023.
  • Danaos has declared an increased dividend of $0.85 per share of common stock for the third quarter of 2024, an increase of 6.25%. The dividend is payable on December 4, 2024, to stockholders of record as of November 25, 2024.

Danaos' CEO Dr. John Coustas commented:

"The container market remained very strong in the third quarter of 2024, allowing us to add over $300 million to our contracted charter backlog which presently stands at $3.3 billion. Importantly, all 14 of our newbuildings on order are fixed for 5 years, except for two that are fixed for 2 years. We have excellent earnings visibility as  we have covered 100% of our container vessel fleet operating days for 2024, 94% for 2025 and 73% for 2026.

The dry bulk market has been uncharacteristically soft lately, which can be attributed to a disruption of seasonal patterns throughout the year as well as a decrease in Chinese steel production. Our dry bulk fleet performed reasonably well during the quarter, and we are expecting freight rates to gradually improve as we move into 2025.

Due to the certainty provided by the charter backlog in our container segment, Danaos is insulated from the unstable and unpredictable nature of the current global backdrop. The recent U.S. Presidential election has introduced new uncertainty about future policymaking and its effect in the shipping market. Most notably, President Trump has openly declared his intention to implement or increase trade tariffs that have the potential to decrease container movements or at least will reshuffle trade lanes. Additionally, it is likely that energy transition initiatives will take place at a slower rate, and we don't know to what extent existing IMO initiatives will be supported by the new administration.

Danaos remains in a fortunate and enviable position. In addition to our charter coverage, our balance sheet is a significant strength. I am proud of the efforts we have undertaken, efforts that have been acknowledged by Moody's, who upgraded Danaos to Ba1. Together with the S&P credit rating at BB+, Danaos now holds the highest grade assigned to a pure play shipping company. Our creditworthiness will allow us to explore fully the U.S. bond market, creating opportunity to raise competitively priced capital to continue to opportunistically pursue growth opportunities.

Our continued strong financial performance and accompanying strengthening of our balance sheet has enabled us to increase our quarterly dividend to $0.85 per share, in line with the commitment we have made to our shareholders. We are also continuing to return value through our  share buyback program. We have now cumulatively bought back stock worth $123 million and have $77 million remaining under our authorized share repurchase program.

We are continuing our efforts to increase the value of the company while remaining vigilant about geopolitical risks to ensure the long-term prosperity of Danaos  for the benefit of our shareholders."

Three months ended September 30, 2024 compared to the three months ended September 30, 2023

During the three months ended September 30, 2024, Danaos had an average of 71.1 container vessels and 9.9 Capesize drybulk vessels compared to 68.0 container vessels and no drybulk vessels during the three months ended September 30, 2023. Our container vessels utilization remained stable at 97.7% in each of  the three months ended September 30, 2024 and September 30, 2023.

Our adjusted net income amounted to $126.8 million, or $6.50 per diluted share, for the three months ended September 30, 2024 compared to $143.0 million, or $7.26 per diluted share, for the three months ended September 30, 2023. We have adjusted our net income in the three months ended September 30, 2024 for a $2.8 million change in fair value of investments, a $0.6 million non-cash finance fees amortization and a $0.4 million loss on vessel disposal.

Adjusted net income of our container vessels segment amounted to $125.1 million for the three months ended September 30, 2024 compared to $142.6 million for the three months ended September 30, 2023. We adjusted net income of container vessels segment in the three months ended September 30, 2024 for a $0.6 million non-cash finance fees amortization and a $0.4 million loss on vessel disposal.

Adjusted net income of our drybulk vessels segment amounted to $0.1 million for the three months ended September 30, 2024 compared to $0.1 million adjusted net loss for the three months ended September 30, 2023.

The $16.2 million decrease in adjusted net income for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 is primarily attributable to a $31.1 million increase in total operating expenses, a $3.3 million increase in net finance expenses and a $0.7 million increase in equity loss on investments, which were partially offset by a $17.0 million increase in operating revenues and a $1.9 million increase in dividends received.

Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release.

On a non-adjusted basis, our net income amounted to $123.0 million, or $6.30 earnings per diluted share, for the three months ended September 30, 2024 compared to net income of $133.2 million, or $6.76 earnings per diluted share, for the three months ended September 30, 2023. On a non-adjusted basis, the net income of our container vessels segment amounted to $124.1 million and the net income of our drybulk vessels segment amounted to $0.1 million for the three months ended September 30, 2024.

Operating Revenues
Operating revenues increased by 7.1%, or $17.0 million, to $256.2 million in the three months ended September 30, 2024 from $239.2 million in the three months ended September 30, 2023.

Operating revenues of our container vessels segment decreased by 1.5%, or $3.6 million, to $235.6 million in the three months ended September 30, 2024 from $239.2 million in the three months ended September 30, 2023, analyzed as follows:

  • a $14.0 million increase in revenues in the three months ended September 30, 2024 compared to the three months ended September 30, 2023 as a result of vessel additions;
  • a $7.1 million increase in revenues in the three months ended September 30, 2024 compared to the three months ended September 30, 2023 due to higher non-cash revenue recognition in accordance with US GAAP;
  • a $17.9 million decrease in revenues in the three months ended September 30, 2024 compared to the three months ended September 30, 2023 as a result of lower charter rates;
  • a $2.4 million decrease in revenues in the three months ended September 30, 2024 compared to the three months ended September 30, 2023 due to vessel disposals; and
  • a $4.4 million decrease in revenues in the three months ended September 30, 2024 compared to the three months ended September 30, 2023 due to decreased amortization of assumed time charters.

Operating revenues of our drybulk vessels segment added an incremental $20.6 million of revenues in the three months ended September 30, 2024 compared to no such operating revenues in the three months ended September 30, 2023.

Vessel Operating Expenses
Vessel operating expenses increased by $10.4 million to $49.9 million in the three months ended September 30, 2024 from $39.5 million in the three months ended September 30, 2023, primarily as a result of the increase in the average number of vessels in our fleet due to recent container vessel newbuilds deliveries and drybulk vessels acquisitions and the increase in average daily operating cost of our vessels to $6,860 per vessel per day for the three months ended September 30, 2024 compared to $6,499 per vessel per day for the three months ended September 30, 2023. Management believes that our daily operating costs remain among the most competitive in the industry.

Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.

Depreciation
Depreciation expense increased by 19.8%, or $6.4 million, to $38.7 million in the three months ended September 30, 2024 from $32.3 million in the three months ended September 30, 2023 mainly due to depreciation expense related to 10 recently acquired Capesize drybulk vessels and 5 recently delivered container newbuilds.

Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs increased by $2.7 million to $7.5 million in the three months ended September 30, 2024 from $4.8 million in the three months ended September 30, 2023.

General and Administrative Expenses
General and administrative expenses increased by $3.9 million, to $11.0 million in the three months ended September 30, 2024 from $7.1 million in the three months ended September 30, 2023. The increase was mainly attributable to increased stock-based compensation and management fees.

Other Operating Expenses
Other Operating Expenses include Voyage Expenses.

Voyage Expenses
Voyage expenses increased by $8.0 million to $17.0 million in the three months ended September 30, 2024 from $9.0 million in the three months ended September 30, 2023 primarily as a result of the $9.2 million in voyage expenses related to our recently acquired 10 Capesize drybulk vessels, which generated revenue partially from voyage charter agreements, compared to no such expenses related to drybulk vessels in the three months ended September 30, 2023.

Voyage expenses of container vessels segment decreased by $1.2 million to $7.8 million in the three months ended September 30, 2024 from $9.0 million in the three months ended September 30, 2023.

Voyage expenses of drybulk vessels segment were $9.2 million in the three months ended September 30, 2024 compared to no voyage expenses in the three months ended September 30, 2023. Total voyage expenses of drybulk vessels comprised $1.2 million commissions and $8.0 million other voyage expenses, mainly bunkers consumption and port expenses, in the three months ended September 30, 2024.

Net gain on disposal/sale of vessels
In March 2024, we sold for scrap the vessel Stride, which had been off-hire since January 8, 2024 due to damage from a fire in the engine room that was subsequently contained. We collected $9.9 million net insurance proceeds for total loss of vessel and recognized a gain on disposal of this vessel amounting to $7.1 million in the six months ended June 30, 2024. In the three months ended September 30, 2024, we recognized $0.4 million of expenses related to this vessel disposal, which reduced the total gain to $6.7 million in the nine months ended September 30, 2024. The proceedings with the insurers are in progress as of September 30, 2024, and any additional gain will be recognized upon their finalization.

Interest Expense and Interest Income
Interest expense increased by $3.7 million, to $8.0 million in the three months ended September 30, 2024 from $4.3 million in the three months ended September 30, 2023. The increase in interest expense is a result of:

  • a $4.2 million increase in interest expense due to an increase in our average indebtedness by $224.7 million between the two periods, which was partially offset by a decrease in our debt service cost by approximately 0.26%, mainly as a result of a reduction in the financing margin cost. Average indebtedness was $646.8 million in the three months ended September 30, 2024, compared to average indebtedness of $422.1 million in the three months ended September 30, 2023;
  • a $0.1 million increase in the amortization of deferred finance costs; which were partially offset by
  • a $0.6 million decrease in interest expense due to an increase in capitalized interest expense on our vessels under construction in the three months ended September 30, 2024.

As of September 30, 2024, our outstanding debt, gross of deferred finance costs, was $689.5 million, which included $262.8 million principal amount of our Senior Notes. These balances compare to debt of $417.4 million, which included $262.8 million principal amount of our Senior Notes as of September 30, 2023. The increase in our outstanding debt is mainly due to loans drawn down to partially finance our container vessel newbuildings.

Interest income remained stable at $3.1 million in each of the three months ended September 30, 2024 and September 30, 2023.

Gain/(loss) on investments
Following the all-stock merger of Eagle Bulk Shipping Inc. with Star Bulk Carriers Corp. ("SBLK") completed on April 9, 2024, we currently own 4,070,214 shares of common stock of SBLK. The $41 thousand gain on investments in the three months ended September 30, 2024 consisted of the $2.8 million fair value loss on these marketable securities, which was offset by the dividends recognized on these shares of $2.8 million. This compares to a $8.4 million loss on marketable securities in the three months ended September 30, 2023.

Equity loss on investments
Equity loss on investments amounting to $1.2 million and $0.5 million in the three months September 30, 2024 and September 30, 2023, respectively, relates to our share of initial expenses of Carbon Termination Technologies Corporation ("CTTC"), currently engaged in the research and development of decarbonization technologies for the shipping industry.

Other finance expenses
Other finance expenses decreased by $0.3 million to $0.9 million in the three months ended September 30, 2024 compared to $1.2 million in the three months ended September 30, 2023.

Loss on derivatives
Amortization of deferred realized losses on interest rate swaps remained stable at $0.9 million in each of the three months ended September 30, 2024 and September 30, 2023.

Other income/(expenses), net
Other expenses, net amounted to $0.7 million in the three months ended September 30, 2024 compared to $1.1 million other income, net in the three months ended September 30, 2023.

Adjusted EBITDA
Adjusted EBITDA increased by 0.5%, or $0.9 million, to $178.9 million in the three months ended September 30, 2024 from $178.0 million in the three months ended September 30, 2023. As outlined above, the increase is mainly attributable to $21.4 million increase in operating revenues and a $1.9 million increase in dividends received, which were partially offset by a $21.7 million increase in total operating expenses and a $0.7 million increase in equity loss on investments. Adjusted EBITDA for the three months ended September 30, 2024 is adjusted for a $2.8 million change in fair value of investments and a $0.4 million loss on disposal of vessel. Tables reconciling Adjusted EBITDA to Net Income can be found at the end of this earnings release.

Adjusted EBITDA of container vessels segment decreased by 2.4%, or $4.2 million, to $173.5 million in the three months ended September 30, 2024 from $177.7 million in the three months ended September 30, 2023.

Adjusted EBITDA of drybulk vessels segment was $3.8 million in the three months ended September 30, 2024. We had just started to be engaged in the drybulk vessels segment and did not have significant expenses in the three months ended September 30, 2023.

Nine months ended September 30, 2024 compared to the nine months ended September 30, 2023

During the nine months ended September 30, 2024, Danaos had an average of 69.3 container vessels and 8.2 Capesize drybulk vessels compared to 68.1 container vessels and no drybulk vessels during the nine months ended September 30, 2023. Our container vessels utilization for the nine months ended September 30, 2024 was 97.4% compared to 97.8% for the nine months ended September 30, 2023.

Our adjusted net income amounted to $399.2 million, or $20.43 per diluted share, for the nine months ended September 30, 2024 compared to $431.6 million, or $21.54 per diluted share, for the nine months ended September 30, 2023. We have adjusted our net income in the nine months ended September 30, 2024 for a $10.4 million change in fair value of investments, a $6.7 million gain on vessel disposal and a $1.6 million non-cash finance fees amortization.

Adjusted net income of our container vessels segment amounted to $391.1 million for the nine months ended September 30, 2024 compared to $434.6 million for the nine months ended September 30, 2023. We adjusted net income of container vessels segment in the nine months ended September 30, 2024 for a $6.7 million gain on vessel disposal and a $1.6 million non-cash finance fees amortization.

Adjusted net income of our drybulk vessels segment amounted to $2.7 million for the nine months ended September 30, 2024 compared to $0.1 million adjusted net loss for the nine months ended September 30, 2023, as we just started to be engaged in the drybulk vessels segment during that period.

The $32.4 million decrease in adjusted net income for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 is primarily attributable to a $73.1 million increase in total operating expenses, which was partially offset by a $31.7 million increase in operating revenues, a $5.9 million increase in dividends received, a $0.7 million decrease in net finance expenses and a $2.4 million decrease in equity loss on investments.

Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release.

On a non-adjusted basis, our net income amounted to $414.6 million, or $21.22 earnings per diluted share, for the nine months ended September 30, 2024 compared to net income of $426.4 million, or $21.28 earnings per diluted share, for the nine months ended September 30, 2023. On a non-adjusted basis, the net income of our container vessels segment amounted to $396.2 million and the net income of our drybulk vessels segment amounted to $2.7 million for the nine months ended September 30, 2024.

Operating Revenues
Operating revenues increased by 4.4%, or $31.6 million, to $755.9 million in the nine months ended September 30, 2024 from $724.3 million in the nine months ended September 30, 2023.

Operating revenues of our container vessels segment decreased by 3.4%, or $24.7 million, to $699.6 million in the nine months ended September 30, 2024 from $724.3 million in the nine months ended September 30, 2023, analyzed as follows:

  • a $18.9 million increase in revenues in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 as a result of vessel additions;
  • a $20.5 million decrease in revenues in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 mainly as a result of lower charter rates and decreased vessel utilization;
  • a $7.5 million decrease in revenues in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 due to vessel disposals;
  • a $12.3 million decrease in revenues in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 due to decreased amortization of assumed time charters; and
  • a $3.3 million decrease in revenues in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 due to lower non-cash revenue recognition in accordance with US GAAP.

Operating revenues of our drybulk vessels segment added an incremental $56.3 million of revenues in the nine months ended September 30, 2024 compared to no such operating revenues in the nine months ended September 30, 2023.

Vessel Operating Expenses
Vessel operating expenses increased by $18.1 million to $140.1 million in the nine months ended September 30, 2024 from $122.0 million in the nine months ended September 30, 2023, primarily as a result of the increase in the average number of vessels in our fleet due to recent container vessel newbuilds and dry bulk vessels acquisitions, while the average daily operating cost of our vessels remained stable at $6,775 per vessel per day for the nine months ended September 30, 2024 compared to $6,758 per vessel per day for the nine months ended September 30, 2023. Management believes that our daily operating costs remain among the most competitive in the industry.

Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.

Depreciation
Depreciation expense increased by 12.7%, or $12.2 million, to $108.0 million in the nine months ended September 30, 2024 from $95.8 million in the nine months ended September 30, 2023 mainly due to depreciation expense related to 10 recently acquired Capesize drybulk vessels and 5 recently delivered container vessel newbuilds.

Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs increased by $6.8 million to $19.9 million in the nine months ended September 30, 2024 from $13.1 million in the nine months ended September 30, 2023.

General and Administrative Expenses
General and administrative expenses increased by $11.4 million, to $32.5 million in the nine months ended September 30, 2024 from $21.1 million in the nine months ended September 30, 2023. The increase was mainly attributable to increased stock-based compensation and management fees.

Other Operating Expenses
Other Operating Expenses include Voyage Expenses.

Voyage Expenses
Voyage expenses increased by $24.8 million to $50.0 million in the nine months ended September 30, 2024 from $25.2 million in the nine months ended September 30, 2023 primarily as a result of the $25.5 million in voyage expenses related to our recently acquired 10 Capesize drybulk vessels, which generated revenue partially from voyage charter agreements, compared to no such expenses related to drybulk vessels in the nine months ended September 30, 2023.

Voyage expenses of container vessels segment decreased by $0.7 million to $24.5 million in the nine months ended September 30, 2024 from $25.2 million in the nine months ended September 30, 2023 mainly due to decreased other voyage expenses. Total voyage expenses of container vessels comprised $24.3 million commissions and $0.2 million other voyage expenses in the nine months ended September 30, 2024.

Voyage expenses of drybulk vessels segment were $25.5 million in the nine months ended September 30, 2024 compared to no voyage expenses in the nine months ended September 30, 2023. Total voyage expenses of drybulk vessels comprised $3.4 million commissions and $22.1 million other voyage expenses, mainly bunkers consumption and port expenses, in the nine months ended September 30, 2024.

Net gain on disposal/sale of vessels
In March 2024, we sold for scrap the vessel Stride, which had been off-hire since January 8, 2024 due to damage from a fire in the engine room that was subsequently contained. We collected $9.9 million net insurance proceeds for total loss of vessel and recognized a gain on disposal of this vessel amounting to $7.1 million in the six months ended June 30, 2024. In the three months ended September 30, 2024, we recognized $0.4 million expenses related to this vessel disposal, which reduced the total gain to $6.7 million in the nine months ended September 30, 2024. The proceedings with the insurers are in progress as of September 30, 2024, and any additional gain will be recognized upon their finalization.

In January 2023, we completed the sale of the container vessel Amalia C for net proceeds of $4.9 million resulting in a gain of $1.6 million.

Interest Expense and Interest Income
Interest expense decreased by $0.7 million, to $16.2 million in the nine months ended September 30, 2024 from $16.9 million in the nine months ended September 30, 2023. The decrease in interest expense is a result of:

  • a $4.8 million decrease in interest expense due to an increase in capitalized interest expense on our vessels under construction in the nine months ended September 30, 2024; and
  • a $0.2 million decrease in the amortization of deferred finance costs; which were partially offset by
  • a $4.3 million increase in interest expense due to an increase in our debt service cost by approximately 0.15% as a result of higher SOFR rates, partially offset by a reduction in our financing margin cost, and by an increase in our average indebtedness by $61.7 million between the two periods. Average indebtedness was $524.6 million in the nine months ended September 30, 2024, compared to average indebtedness of $462.9 million in the nine months ended September 30, 2023.

As of September 30, 2024, our outstanding debt, gross of deferred finance costs, was $689.5 million, which included $262.8 million principal amount of our Senior Notes. These balances compare to debt of $417.4 million, which included $262.8 million principal amount of our Senior Notes as of September 30, 2023. The increase in our outstanding debt is mainly due to loans drawn down to partially finance our container vessel newbuildings.

Interest income decreased by $0.4 million to $9.0 million in the nine months ended September 30, 2024 compared to $9.4 million in the nine months ended September 30, 2023.

Gain/(loss) on investments
Following the all-stock merger of Eagle Bulk Shipping Inc. with Star Bulk Carriers Corp. ("SBLK") completed on April 9, 2024, we currently own 4,070,214 shares of common stock of SBLK. The gain on investments of $17.2 million in the nine months ended September 30, 2024 consisted of the change in fair value of these marketable securities of $10.4 million and dividends recognized on these shares of $6.8 million. This compares to a $2.0 million loss on marketable securities in the nine months ended September 30, 2023.

Loss on debt extinguishment
A $2.3 million loss on early extinguishment of our leaseback obligations in the nine months ended September 30, 2023 compares to no such loss in the nine months ended September 30, 2024.

Equity loss on investments
Equity loss on investments amounting to $1.4 million and $3.9 million in the nine months September 30, 2024 and September 30, 2023, respectively, relates to our share of initial expenses of CTTC, currently engaged in the research and development of decarbonization technologies for the shipping industry.

Other finance expenses
Other finance expenses decreased by $0.7 million to $2.7 million in the nine months ended September 30, 2024 compared to $3.4 million in the nine months ended September 30, 2023.

Loss on derivatives
Amortization of deferred realized losses on interest rate swaps remained stable at $2.7 million in each of the nine months ended September 30, 2024 and September 30, 2023.

Other income/(expenses), net
Other expenses, net amounted to $0.6 million in each of the nine months ended September 30, 2024 and September 30, 2023.

Adjusted EBITDA
Adjusted EBITDA decreased by 0.3%, or $1.5 million, to $532.9 million in the nine months ended September 30, 2024 from $534.4 million in the nine months ended September 30, 2023. As outlined above, the decrease is mainly attributable to a $53.7 million increase in total operating expenses, which were partially offset by a $43.9 million increase in operating revenues, a $5.9 million increase in dividends received and a $2.4 million decrease in equity loss on investments. Adjusted EBITDA for the nine months ended September 30, 2024 is adjusted for a $10.4 million change in fair value of investments and a $6.7 million net gain on disposal of vessel. Tables reconciling Adjusted EBITDA to Net Income can be found at the end of this earnings release.

Adjusted EBITDA of container vessels segment decreased by 3.8%, or $20.6 million, to $516.8 million in the nine months ended September 30, 2024 from $537.4 million in the nine months ended September 30, 2023.

Adjusted EBITDA of drybulk vessels segment was $10.7 million in the nine months ended September 30, 2024. We had just started to be engaged in the drybulk vessels segment and did not have significant expenses in the nine months ended September 30, 2023.

Dividend Payment
Danaos has declared a dividend of $0.85 per share of common stock for the third quarter of 2024, which is payable on December 4, 2024 to stockholders of record as of November 25, 2024.

Recent Developments
In October 2024 and through November 7, 2024, we repurchased 210,422 shares of our common stock in the open market for $17.8 million.

In October 2024, we took delivery of our 6th newbuilding containership the Greenfield, which was deployed on a three-year time charter.

Conference Call and Webcast
On Wednesday, November 12, 2024 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 279 948 9 (UK Toll Free Dial In) or +44 (0) 2075 441 375 (Standard International Dial In). Please indicate to the operator that you wish to join the Danaos Corporation earnings call.

A telephonic replay of the conference call will be available until November 19, 2024 by dialing 1 877 344 7529 (US Toll Free Dial In) or 1-412-317-0088 (Standard International Dial In) and using 8988845# 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 container and drybulk 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 container vessels. Our current fleet of 73 container vessels aggregating 465,463 TEUs and 14 under construction container vessels aggregating 115,834 TEUs ranks Danaos among the largest container vessels charter owners in the world based on total TEU capacity. Danaos has also recently invested in the drybulk sector with the acquisition of 10 capesize drybulk vessels aggregating 1,760,861 DWT. Our container vessels 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 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, performance of shipyards constructing  our contracted newbuilding vessels, ability to obtain financing and comply with covenants in our financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, including the conflict in Ukraine and related sanctions, the conflict in Israel and the Gaza Strip, potential disruption of shipping routes such as Houthi attacks in the Red Sea and the Gulf of Aden, 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

Container vessels fleet utilization









Vessel Utilization (No. of Days)


Three months ended


Three months ended


Nine months ended


Nine months ended


September 30,

September 30,


September 30,

September 30,


2024

2023


2024

2023

Ownership Days


6,540


6,256


18,978


18,594

Less Off-hire Days:









Scheduled Off-hire Days


(127)


(119)


(289)


(349)

Other Off-hire Days


(26)


(22)


(195)


(68)

Operating Days(1)


6,387


6,115


18,494


18,177

Vessel Utilization


97.7 %


97.7 %


97.4 %


97.8 %










Operating Revenues (in '000s of US$)


$235,570


$239,215


$699,567


$724,268

Less: Voyage Expenses excluding commissions (in '000s of US$)


757


(479)


(179)


(1,225)

Time Charter Equivalent Revenues (in '000s of US$)


236,327


238,736


699,388


723,043

Time Charter Equivalent US$/per day(2)


$37,001


$39,041


$37,817


$39,778










Drybulk vessels fleet utilization









Vessel Utilization (No. of Days)


Three months ended


Three months ended


Nine months ended


Nine months ended


September 30,

September 30,


September 30,

September 30,


2024

2023


2024

2023

Ownership Days


913


5


2,244


5

Less Off-hire Days:









Scheduled Off-hire Days


(119)


(5)


(240)


(5)

Other Off-hire Days


(16)


-


(26)


-

Operating Days(1)


778


-


1,978


-

Vessel Utilization


85.2 %


-


88.1 %


-










Operating Revenues (in '000s of US$)


$20,606


-


$56,364


-

Less: Voyage Expenses excluding commissions (in '000s of US$)


(8,019)


-


(22,115)


-

Time Charter Equivalent Revenues (in '000s of US$)


12,587


-


34,249


-

Time Charter Equivalent US$/per day(2)


$16,179


-


$17,315


-













1)

We define Operating Days as the total number of Ownership Days net of Scheduled off-hire days (days associated with scheduled repairs, drydockings or special or intermediate surveys or days) and net of off-hire days associated with unscheduled repairs or days waiting to find employment but including days our vessels were sailing for repositioning. The shipping industry uses Operating Days to measure the number of days in a period during which vessels actually generate revenues or are sailing for repositioning purposes. Our definition of Operating Days may not be comparable to that used by other companies in the shipping industry.

2)

Time charter equivalent US$/per day ("TCE rate") represents the average daily TCE rate of our container vessels segment and drybulk vessels segment calculated dividing time charter equivalent revenues of each segment by operating days of each segment. TCE rate is a standard shipping industry performance measure used primarily to compare period to period changes in a shipping company's performance despite changes in the mix of charter types i.e., voyage charters, time charters, bareboat charters under which its vessels may be employed between the periods. Our method of computing TCE rate may not necessarily be comparable to TCE rates of other companies due to differences in methods of calculation. We include TCE rate, a non- GAAP measure, as it provides additional meaningful information in conjunction with operating revenues, the most directly comparable GAAP measure, and it assists our management in making decisions regarding the deployment and use of our operating vessels and assists investors and our management in evaluating our financial performance.



Fleet List

The following table describes in detail our container vessels deployment profile as of  November 7, 2024:

Vessel Name

Vessel Size

(TEU) (1)


Year Built


Expiration of Charter(2)

Ambition (ex Hyundai Ambition)

13,100


2012


April 2027

Speed (ex Hyundai Speed)

13,100


2012


March 2027

Kota Plumbago (ex Hyundai Smart)

13,100


2012


July 2027

Kota Primrose (ex Hyundai Respect)

13,100


2012


April 2027

Kota Peony (ex Hyundai Honour)

13,100


2012


March 2027

Express Rome

10,100


2011


May 2027

Express Berlin

10,100


2011


August 2026

Express Athens

10,100


2011


May 2027

Le Havre

9,580


2006


June 2028

Pusan C

9,580


2006


May 2028

Bremen

9,012


2009


January 2028

C Hamburg

9,012


2009


January 2028

Niledutch Lion

8,626


2008


May 2026

Kota Manzanillo

8,533


2005


February 2026

Belita

8,533


2006


July 2026

CMA CGM Melisande

8,530


2012


January 2028

CMA CGM Attila

8,530


2011


May 2027

CMA CGM Tancredi

8,530


2011


July 2027

CMA CGM Bianca

8,530


2011


September 2027

CMA CGM Samson

8,530


2011


November 2027

America

8,468


2004


April 2028

Europe

8,468


2004


May 2028

Kota Santos

8,463


2005


August 2026

Catherine C(3)

8,010


2024


May 2027

Greenland(3)

8,010


2024


June 2027

Greenville(4)

8,010


2024


August 2027

Greenfield(5)

8,010


2024


October 2027

Interasia Accelerate(3)

7,165


2024


April 2027

Interasia Amplify(4)

7,165


2024


September 2027

CMA CGM Moliere

6,500


2009


March 2027

CMA CGM Musset

6,500


2010


September 2025

CMA CGM Nerval

6,500


2010


November 2025

CMA CGM Rabelais

6,500


2010


January 2026

Racine

6,500


2010


April 2026

YM Mandate

6,500


2010


January 2028

YM Maturity

6,500


2010


April 2028

Savannah (ex Zim Savannah)

6,402


2002


June 2027

Dimitra C

6,402


2002


April 2027

Suez Canal

5,610


2002


April 2026

Kota Lima

5,544


2002


September 2025

Wide Alpha 

5,466


2014


July 2027

Stephanie C

5,466


2014


May 2028

Euphrates (ex Maersk Euphrates)

5,466


2014


September 2028

Wide Hotel

5,466


2015


September 2027

Wide India

5,466


2015


October 2028

Wide Juliet

5,466


2015


September 2025

Seattle C

4,253


2007


October 2026

Vancouver

4,253


2007


November 2026

Derby D

4,253


2004


January 2027

Tongala

4,253


2004


December 2026

Rio Grande

4,253


2008


November 2026

Merve A

4,253


2008


September 2025

Kingston

4,253


2008


June 2027

Monaco (ex ZIM Monaco)

4,253


2009


September 2026

Dalian

4,253


2009


March 2026

ZIM Luanda

4,253


2009


August 2025

Dimitris C

3,430


2001


September 2027

Express Black Sea

3,400


2011


January 2027

Express Spain

3,400


2011


January 2027

Express Argentina

3,400


2010


December 2026

Express Brazil

3,400


2010


April 2027

Express France

3,400


2010


July 2027

Singapore

3,314


2004


March 2027

Colombo

3,314


2004


January 2027

Zebra

2,602


2001


November 2025

Artotina

2,524


2001


January 2026

Advance

2,200


1997


June 2026

Future

2,200


1997


May 2026

Sprinter

2,200


1997


May 2026

Bridge

2,200


1998


December 2024

Progress C

2,200


1998


April 2026

Phoenix D

2,200


1997


March 2025

Highway

2,200


1998


February 2025



(1)

Twenty-feet equivalent unit, the international standard measure for containers and container vessels capacity.

(2)

Earliest date charters could expire. Some charters include options for the charterer to extend their terms.

(3)

The newbuilding vessels were delivered in the second quarter of 2024.

(4)

The newbuilding vessels were delivered in the third quarter of 2024.

(5)

The newbuilding vessel was delivered in October 2024.

 

Container vessels under construction as of November 7, 2024:

Hull Number

Vessel Size

(TEU)


Expected Delivery Year



Minimum Charter Duration

Hull No. CV5900-07

6,014


2025



2 Years

Hull No. CV5900-08

6,014


2025



2 Years

Hull No. YZJ2023-1556

8,258


2026



5 Years

Hull No. YZJ2023-1557

8,258


2026



5 Years

Hull No. YZJ2024-1612

8,258


2026



5 Years

Hull No. YZJ2024-1613

8,258


2027



5 Years

Hull No. YZJ2024-1625

8,258


2027



5 Years

Hull No. YZJ2024-1626

8,258


2027



5 Years

Hull No. YZJ2024-1668

8,258


2027



5 Years

Hull No. C9200-7

9,200


2027



4.8 Years

Hull No. C9200-8

9,200


2027



4.8 Years

Hull No. C9200-9

9,200


2027



4.8 Years

Hull No. C9200-10

9,200


2028



4.8 Years

Hull No. C9200-11

9,200


2028



4.8 Years

 

The following table describes the details of our Capesize drybulk vessels as of November 7, 2024:

Vessel Name

Capacity

(DWT) (1)


Year Built


Achievement

175,966


2011


Genius

175,580


2012


Ingenuity

176,022


2011


Integrity

175,966


2010


Peace

175,858


2010


W Trader

175,879


2009


E Trader

175,886


2009


Gouverneur (ex Xin Hang) (2)

178,043


2010


Valentine (ex Star Audrey) (2)

175,125


2011


Danaos (ex Guo May) (3)

176,536


2011




(1)

DWT, dead weight tons, the international standard measure for drybulk vessels capacity.

(2)

The vessels were delivered in the second quarter of 2024.

(3)

The vessel was delivered in July 2024.



 

DANAOS CORPORATION

Condensed Consolidated Statements of Income - Unaudited

(Expressed in thousands of United States dollars, except per share amounts)




Three months
ended


Three months
ended


Nine months
ended


Nine months
ended

September 30,

September 30,

September 30,

September 30,



2024


2023


2024


2023










OPERATING REVENUES

$256,176


$239,215


$755,931


$724,268

OPERATING EXPENSES









Vessel operating expenses

(49,866)


(39,494)


(140,070)


(121,994)


Depreciation & amortization

(46,211)


(37,097)


(127,878)


(108,873)


General & administrative

(10,978)


(7,070)


(32,519)


(21,107)


Other operating expenses

(16,999)


(8,959)


(50,019)


(25,241)


Net gain/(loss) on disposal/sale of vessels

(443)


-


6,651


1,639

Income From Operations

131,679


146,595


412,096


448,692

OTHER INCOME/(EXPENSES)









Interest income

3,124


3,091


8,983


9,410


Interest expense

(8,013)


(4,306)


(16,243)


(16,909)


Gain/(loss) on investments

41


(8,432)


17,228


(1,994)


Loss on debt extinguishment

-


-


-


(2,254)


Other finance expenses

(944)


(1,236)


(2,694)


(3,358)


Equity loss on investments

(1,232)


(526)


(1,438)


(3,852)


Other income/(expenses), net

(746)


(1,117)


(567)


(648)


Realized loss on derivatives

(913)


(913)


(2,719)


(2,709)

Total Other Income/(Expenses), net

(8,683)


(13,439)


2,550


(22,314)

Net Income

122,996


133,156


414,646


426,378

EARNINGS PER SHARE








Basic earnings per share

$6.36


$6.76


$21.41


$21.28

Diluted earnings per share

$6.30


$6.76


$21.22


$21.28

Basic weighted average number of common shares (in thousands of shares)

19,345


19,693


19,368


20,039

Diluted weighted average number of common shares (in thousands of shares)

19,517


19,693


19,540


20,039

 

Reconciliation of Net Income to Adjusted Net Income – Unaudited



Three months
ended


Three months
ended


Nine months
ended


Nine months
ended

September 30,

September 30,


September 30,

September 30,


2024


2023


2024


2023

Net Income

$122,996


$133,156


$414,646


$426,378

Change in fair value of investments

2,808


9,333


(10,395)


2,895

Loss on debt extinguishment

-


-


-


2,254

Net (gain)/loss on disposal/sale of vessels

445


-


(6,649)


(1,639)

Amortization of financing fees

598


474


1,569


1,735

Adjusted Net Income

$126,845


$142,963


$399,169


$431,623

Adjusted Earnings Per Share, diluted

$6.50


$7.26


$20.43


$21.54

Diluted weighted average number of shares (in thousands of shares)

19,517


19,693


19,540


20,039



1)

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Table above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and nine months ended September 30, 2024 and 2023. The 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. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.

 

DANAOS CORPORATION

Condensed Consolidated Balance Sheets - Unaudited

(Expressed in thousands of United States dollars)





As of


As of

September 30,

December 31,




2024


2023

ASSETS





CURRENT ASSETS






Cash, cash equivalents and restricted cash


$384,336


$271,809


Accounts receivable, net


24,647


9,931


Other current assets


221,002


220,030




629,985


501,770

NON-CURRENT ASSETS






Fixed assets, net


3,215,293


2,746,541


Advances for vessels acquisition and vessels under construction


299,458


301,916


Deferred charges, net


46,133


38,012


Other non-current assets


62,949


72,897




3,623,833


3,159,366

TOTAL ASSETS


$4,253,818


$3,661,136







LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES






Long-term debt, current portion


$31,720


$21,300


Accounts payable, accrued liabilities & other current liabilities


128,687


146,860




160,407


168,160

LONG-TERM LIABILITIES






Long-term debt, net


647,276


382,874


Other long-term liabilities


59,695


93,785




706,971


476,659







STOCKHOLDERS' EQUITY






Common stock


193


194


Additional paid-in capital


688,649


690,190


Accumulated other comprehensive loss


(72,472)


(75,979)


Retained earnings


2,770,070


2,401,912




3,386,440


3,016,317

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$4,253,818


$3,661,136

 

DANAOS CORPORATION

Condensed Consolidated Statements of Cash Flows - Unaudited

(Expressed in thousands of United States dollars)




Three months ended


Three months ended


Nine months ended


Nine months ended

September 30,

September 30,

September 30,

September 30,



2024


2023


2024


2023

Operating Activities:









   Net income

$122,996


$133,156


$414,646


$426,378


   Adjustments to reconcile net income to net cash provided by operating activities:









   Depreciation

38,726


32,325


107,969


95,764


   Amortization of deferred drydocking & special survey costs and finance costs

8,083


5,246


21,478


14,844


   Amortization of assumed time charters

-


(4,416)


(4,534)


(16,806)


   Prior service cost and periodic cost

1,133


220


1,848


1,106


   (Gain)/loss on investments

2,808


9,333


(10,395)


2,895


   Loss on debt extinguishment

-


-


-


2,254


   Net (gain)/loss on disposal/sale of vessels

443


-


(6,651)


(1,639)


   Payments for drydocking/special survey

(14,072)


(6,993)


(28,690)


(21,553)


   Amortization of deferred realized losses on cash flow interest rate swaps

913


913


2,719


2,709


   Equity loss on investments

1,232


526


1,438


3,852


   Stock based compensation

1,594


-


4,747


-


   Accounts receivable

6,216


740


(6,579)


(1,716)


   Other assets, current and non-current

2,568


982


23,775


(11,424)


   Accounts payable and accrued liabilities

(6,728)


(4,654)


(961)


(7,805)


   Other liabilities, current and long-term

(8,368)


(17,872)


(55,699)


(58,747)

Net Cash provided by Operating Activities

157,544


149,506


465,111


430,112










Investing Activities:









   Vessel additions and advances for vessels under construction

(239,353)


(98,274)


(581,208)


(128,058)


   Net proceeds and insurance proceeds from disposal/sale of vessels

(443)


-


10,196


3,914


   Investments

(1,225)


-


(1,225)


(74,407)

Net Cash used in Investing Activities

(241,021)


(98,274)


(572,237)


(198,551)










Financing Activities:









   Proceeds from long-term debt

118,000


-


299,000


-


   Debt repayment

(6,290)


(6,875)


(20,040)


(20,625)


   Payments of leaseback obligations

-


-


-


(72,925)


   Dividends paid

(15,476)


(14,802)


(46,487)


(45,163)


   Repurchase of common stock

(492)


(16,596)


(5,715)


(52,334)


   Finance costs

(375)


-


(7,105)


(1,892)

Net Cash provided by/(used in) Financing Activities

95,367


(38,273)


219,653


(192,939)

Net increase in cash and cash equivalents

11,890


12,959


112,527


38,622

Cash and cash equivalents, beginning of period

372,446


293,331


271,809


267,668

Cash and cash equivalents, end of period

$384,336


$306,290


$384,336


$306,290

 

DANAOS CORPORATION

Reconciliation of Net Income to Adjusted EBITDA - Unaudited

(Expressed in thousands of United States dollars) 


Three
months
ended


Three
months
ended


Nine
months
ended


Nine
months
ended

September
30,

September
30,

September
30,

September
30,


2024


2023


2024


2023

Net income

$122,996


$133,156


$414,646


$426,378

Depreciation

38,726


32,325


107,969


95,764

Amortization of deferred drydocking & special survey costs

7,485


4,772


19,909


13,109

Amortization of assumed time charters

-


(4,416)


(4,534)


(16,806)

Amortization of finance costs and commitment fees

1,235


1,203


3,534


3,965

Amortization of deferred realized losses on interest rate swaps

913


913


2,719


2,709

Interest income

(3,124)


(3,091)


(8,983)


(9,410)

Interest expense excluding amortization of finance costs

7,415


3,832


14,674


15,174

Change in fair value of investments

2,808


9,333


(10,395)


2,895

Loss on debt extinguishment

-


-


-


2,254

Net (gain)/loss on disposal/sale of vessels

443


-


(6,651)


(1,639)

Adjusted EBITDA(1)

$178,897


$178,027


$532,888


$534,393


Last twelve
months
ended


Last twelve
months
ended



September
30,

December
31,



2024


2023


Net income

$564,567


$576,299


Depreciation

141,492


129,287


Amortization of deferred drydocking & special survey costs

25,463


18,663


Amortization of assumed time charters

(8,950)


(21,222)


Amortization of finance costs and commitment fees

4,705


5,136


Amortization of deferred realized losses on interest rate swaps

3,632


3,622


Interest income

(11,706)


(12,133)


Interest expense excluding amortization of finance costs

17,762


18,262


Change in fair value of investments

(31,157)


(17,867)


Stock based compensation

6,340


6,340


Loss on debt extinguishment

-


2,254


Net gain on disposal/sale of vessels

(6,651)


(1,639)


Adjusted EBITDA(1)

$705,497


$707,002




1)

Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs and commitment fees, amortization of deferred realized losses on interest rate swaps, change in fair value of investments, stock based compensation, loss on debt extinguishment and net gain on disposal/sale of vessels. 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 EBITDA and Adjusted EBITDA assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core 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. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.




Note: Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to net income. Charges negatively impacting net income are reflected as increases to net income.


The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and nine months ended September 30, 2024 and September 30, 2023; and the last twelve months ended September 30, 2024 and December 31, 2023. 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

Reconciliation of Net Income to Adjusted EBITDA per segment

Three Months Ended September 30, 2024 and Three Months Ended September 30, 2023

Unaudited

(Expressed in thousands of United States dollars)






















Three Months Ended



Three Months Ended



September 30, 2024



September 30, 2023



Container
Vessels


Drybulk
Vessels


Other


Total



Container
Vessels


Drybulk
Vessels


Other


Total

Net income/(loss)


$124,102


$62


$(1,168)


$122,996



$142,173


$(59)


$(8,958)


$133,156

Depreciation


35,520


3,206


-


38,726



32,315


10


-


32,325

Amortization of deferred drydocking & special survey costs


6,927


558


-


7,485



4,772


-


-


4,772

Amortization of assumed time charters


-


-


-


-



(4,416)


-


-


(4,416)

Amortization of finance costs and commitment fees


1,235


-


-


1,235



1,203


-


-


1,203

Amortization of deferred realized losses on interest rate swaps


913


-


-


913



913


-


-


913

Interest income


(3,101)


-


(23)


(3,124)



(3,091)


-


-


(3,091)

Interest expense excluding amortization of finance costs


7,415


-


-


7,415



3,832


-


-


3,832

Change in fair value of investments


-


-


2,808


2,808



-


-


9,333


9,333

Net (gain)/loss on disposal/sale of vessels


443


-


-


443



-


-


-


-

Adjusted EBITDA(1)


$173,454


$3,826


$1,617


$178,897



$177,701


$(49)


$375


$178,027



1)

Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs and commitment fees, amortization of deferred realized losses on interest rate swaps, change in fair value of investments and net gain on disposal/sale of vessels. 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 EBITDA and Adjusted EBITDA assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core 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. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.




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 months ended September 30, 2024 and 2023. 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

Reconciliation of Net Income to Adjusted EBITDA per segment

Nine Months Ended September 30, 2024 and Nine Months Ended September 30, 2023

Unaudited

(Expressed in thousands of United States dollars)






















Nine Months Ended



Nine Months Ended



September 30, 2024



September 30, 2023



Container
Vessels


Drybulk
Vessels


Other


Total



Container
Vessels


Drybulk
Vessels


Other


Total

Net income/(loss)


$396,144


$2,689


$15,813


$414,646



$432,283


$(59)


$(5,846)


$426,378

Depreciation


100,775


7,194


-


107,969



95,754


10


-


95,764

Amortization of deferred drydocking & special survey costs


19,062


847


-


19,909



13,109


-


-


13,109

Amortization of assumed time charters


(4,534)


-


-


(4,534)



(16,806)


-


-


(16,806)

Amortization of finance costs and commitment fees


3,534


-


-


3,534



3,965


-


-


3,965

Amortization of deferred realized losses on interest rate swaps


2,719


-


-


2,719



2,709


-


-


2,709

Interest income


(8,960)


-


(23)


(8,983)



(9,410)


-


-


(9,410)

Interest expense excluding amortization of finance costs


14,674


-


-


14,674



15,174


-


-


15,174

Change in fair value of investments


-


-


(10,395)


(10,395)



-


-


2,895


2,895

Loss on debt extinguishment


-


-


-


-



2,254


-


-


2,254

Net gain on disposal/sale of vessels


(6,651)


-


-


(6,651)



(1,639)


-


-


(1,639)

Adjusted EBITDA(1)


$516,763


$10,730


$5,395


$532,888



$537,393


$(49)


$(2,951)


$534,393



1)

Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs and commitment fees, amortization of deferred realized losses on interest rate swaps, change in fair value of investments and net gain on disposal/sale of vessels. 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 EBITDA and Adjusted EBITDA assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core 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. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.




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 nine months ended September 30, 2024 and 2023. 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

Reconciliation of Net Income to Adjusted Net Income per segment

Three Months Ended September 30, 2024 and Three Months Ended September 30, 2023

Unaudited

(Expressed in thousands of United States dollars)






















Three Months Ended



Three Months Ended



September 30, 2024



September 30, 2023



Container
Vessels


Drybulk
Vessels


Other


Total



Container
Vessels


Drybulk
Vessels


Other


Total

Net income/(loss)


$124,102


$62


$(1,168)


$122,996



$142,173


$(59)


$(8,958)


$133,156

Change in fair value of investments


-


-


2,808


2,808



-


-


9,333


9,333

Amortization of financing fees


598


-


-


598



474


-


-


474

Net loss on disposal/sale of vessels


443


-


-


443



-


-


-


-

Adjusted Net income/(loss)(1)


$125,143


$62


$1,640


$126,845



$142,647


$(59)


$375


$142,963

Adjusted Earnings per Share, diluted








$6.50









$7.26

Diluted weighted average number of shares (in thousands of shares)


19,517





19,693

 

DANAOS CORPORATION

Reconciliation of Net Income to Adjusted Net Income per segment

Nine Months Ended September 30, 2024 and Nine Months Ended September 30, 2023

Unaudited

(Expressed in thousands of United States dollars)






















Nine Months Ended



Nine Months Ended



September 30, 2024



September 30, 2023



Container
Vessels


Drybulk
Vessels


Other


Total



Container
Vessels


Drybulk
Vessels


Other


Total

Net income/(loss)


$396,144


$2,689


$15,813


$414,646



$432,283


$(59)


$(5,846)


$426,378

Change in fair value of investments


-


-


(10,395)


(10,395)



-


-


2,895


2,895

Loss on debt extinguishment


-


-


-


-



2,254


-


-


2,254

Amortization of financing fees


1,569


-


-


1,569



1,735


-


-


1,735

Net gain on disposal/sale of vessels


(6,651)


-


-


(6,651)



(1,639)


-


-


(1,639)

Adjusted Net income/(loss)(1)


$391,062


$2,689


$5,418


$399,169



$434,633


$(59)


$(2,951)


$431,623

Adjusted Earnings per Share, diluted








$20.43









$21,54

Diluted weighted average number of shares (in thousands of shares)


19,540





20,039



1)

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Table above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and nine months ended September 30, 2024 and 2023. 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. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries.

 

Cision View original content:https://www.prnewswire.com/news-releases/danaos-corporation-reports-third-quarter-and-nine-months-results-for-the-period-ended-september-30-2024-302302417.html

SOURCE Danaos Corporation

FAQ

What was Danaos 's (DAC) revenue in Q3 2024?

Danaos reported operating revenues of $256.2 million in Q3 2024, representing a 7.1% increase from Q3 2023.

What is Danaos 's (DAC) fleet charter coverage for 2024-2026?

Danaos has secured 100% charter coverage for 2024, 94% for 2025, and 73% for 2026 for its container vessel fleet.

How much dividend did Danaos (DAC) declare for Q3 2024?

Danaos declared a quarterly dividend of $0.85 per share for Q3 2024, representing a 6.25% increase.

What is Danaos 's (DAC) current contracted revenue backlog?

Danaos has a total contracted revenue backlog of $3.3 billion, including newbuildings.

Stock DAC logo
Danaos Corporation

NYSE:DAC

DAC Rankings

#2214 Ranked by Market Cap
#683 Ranked by Dividends

DAC Latest News

Oct 31, 2024
Danaos Corporation Announces Date for the Release of Third Quarter 2024 Results, Conference Call and Webcast
Aug 5, 2024
Danaos Corporation Reports Second Quarter and Half Year Results for the Period Ended June 30, 2024
Jul 29, 2024
Danaos Corporation Announces Date for the Release of Second Quarter 2024 Results, Conference Call and Webcast
Jul 8, 2024
Danaos Corporation Announces Additions of $616 million to its Contracted Revenue Backlog and the Addition of Five Containership Vessels to its Newbuildings Orderbook
May 28, 2024
Danaos Corporation Reports First Quarter Results for Period Ended March 31, 2024

DAC Stock Data

1.48B
9.71M
49.75%
19.57%
2.41%
Marine Shipping
Industrials
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United States of America
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