Danaos Corporation Reports First Quarter Results for Period Ended March 31, 2024

Published

ATHENS, Greece--(BUSINESS WIRE)-- 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 first quarter ended March 31, 2024.

Highlights for the First Quarter Ended March 31, 2024:

Financial Summary Three Months Ended March 31, 2024 and Three Months Ended March 31, 2023 Unaudited (Expressed in thousands of United States dollars, except as otherwise stated)

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

March 31, 2024

 

 

March 31, 2023

Financial & Operating Metrics

 

Container Vessels

 

Drybulk Vessels

 

Other

 

Total

 

 

Container Vessels

 

Drybulk Vessels

 

Other

 

Total

Operating Revenues

 

$233,411

 

$20,038

 

-

 

$253,449

 

 

$243,574

 

-

 

-

 

$243,574

Voyage Expenses, excl. commissions

 

$(488)

 

$(10,827)

 

-

 

$(11,315)

 

 

$(415)

 

-

 

-

 

$(415)

Time Charter Equivalent Revenues (1)

 

$232,923

 

$9,211

 

-

 

$242,134

 

 

$243,159

 

-

 

-

 

$243,159

Net income / (loss)

 

$138,359

 

$337

 

$11,802

 

$150,498

 

 

$148,789

 

-

 

$(2,588)

 

$146,201

Adjusted net income / (loss) (2)

 

$138,856

 

$337

 

$823

 

$140,016

 

 

$147,843

 

-

 

$(2,588)

 

$145,255

Earnings per share, basic

 

 

 

 

 

 

 

$7.75

 

 

 

 

 

 

 

 

$7.18

Earnings per share, diluted

 

 

 

 

 

 

 

$7.68

 

 

 

 

 

 

 

 

$7.18

Adjusted earnings per share, diluted (2)

 

 

 

 

 

 

 

$7.15

 

 

 

 

 

 

 

 

$7.14

Operating Days

 

6,019

 

596

 

-

 

 

 

 

5,956

 

-

 

-

 

 

Time Charter Equivalent $/day (1)

 

$38,698

 

$15,455

 

-

 

 

 

 

$40,826

 

-

 

-

 

 

Ownership days

 

6,185

 

637

 

-

 

 

 

 

6,150

 

-

 

-

 

 

Average number of vessels

 

68.0

 

7.0

 

-

 

 

 

 

68.3

 

-

 

-

 

 

Fleet Utilization

 

97.3%

 

93.6%

 

-

 

 

 

 

96.8%

 

-

 

-

 

 

Adjusted EBITDA (2)

 

 

$174,188

 

$2,192

 

$823

 

$177,203

 

 

$181,628

 

-

 

$(2,588)

 

$179,040

Consolidated Balance Sheet & Leverage Metrics

As of March 31, 2024

 

 

 

 

 

 

As of December 31, 2023

Cash and cash equivalents

 

 

 

$324,326

 

 

 

 

 

 

 

 

$271,809

Availability under Revolving Credit Facility

 

 

 

$326,250

 

 

 

 

 

 

 

 

$337,500

Marketable securities(3)

 

 

 

$97,007

 

 

 

 

 

 

 

 

-

Total cash liquidity & marketable securities(4)

 

 

 

$747,583

 

 

 

 

 

 

 

 

$609,309

Debt, gross of deferred finance costs

 

 

 

$458,641

 

 

 

 

 

 

 

 

$410,516

Net Debt (5)

 

 

 

$134,315

 

 

 

 

 

 

 

 

$138,707

LTM Adjusted EBITDA (6)

 

 

 

$705,165

 

 

 

 

 

 

 

 

$707,002

Net Debt / LTM Adjusted EBITDA

 

 

 

0.19x

 

 

 

 

 

 

 

 

0.20x

 

1.

Time charter equivalent revenues, time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided below.

 

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 net income to adjusted EBITDA provided below.

 

3. 

Marketable securities refer to fair value of 1,552,865 shares of common stock of EGLE as at March 31, 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 segment 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 accounting and investments in marketable securities.

  • In March 2024, we entered into a syndicated loan facility agreement for an amount of up to $450 million, to finance all of our 8 newbuilding container vessels with deliveries in 2024 and 2025. An amount of $55.0 million was utilized as of March 31, 2024 to finance the delivery of the first of these vessels. This facility is repayable in quarterly instalments up to September 2030.
  • In February 2024, we entered into agreements to acquire an additional 3 Capesize drybulk vessels aggregating 529,704 DWT, with expected delivery to us in the second and third quarter of 2024. This will bring the total number of our Capesize drybulk vessels fleet to 10 vessels with an aggregate capacity of 1,760,861 DWT.
  • In February and March 2024 we added four 8,258 TEU newbuildings to our orderbook with expected deliveries in 2026 and 2027. As a result, as of March 31, 2024, we had 14 container vessels under construction with an aggregate capacity of 107,946 TEU. Two newbuilding vessels were delivered to us in April and May 2024, four vessels are expected to be delivered in the remainder of 2024, two vessels in 2025, three vessels in 2026 and three vessels in 2027. 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.
  • We have now secured multi-year chartering agreements for all of our 14 newbuildings. As a result of this chartering activity, over the past three months we have added approximately $423 million to our contracted revenue backlog through the arrangement of new charters for 5 container vessels in our fleet and 8 newbuildings.
  • As a result, total contracted cash operating revenues, on the basis of concluded charter contracts through the date of this release, currently stand at $2.5 billion. The remaining average contracted charter duration is 2.9 years, weighted by aggregate contracted charter hire.
  • As of the date of this release, Danaos has repurchased a total of 1,671,059 shares of its common stock in the open market for $104.4 million under its share repurchase program of up to $200 million announced in June 2022, as amended on November 10, 2023.
  • Contracted operating days charter coverage for our container vessel fleet is currently 99% for 2024 and 69% for 2025. This includes newbuildings based on their scheduled delivery dates.
  • Danaos has declared a dividend of $0.80 per share of common stock for the first quarter of 2024, which is payable on June 20, 2024, to stockholders of record as of June 11, 2024.

Danaos’ CEO Dr. John Coustas commented:

“The container market continued to strengthen in the first quarter of 2024, a trend that has continued into the second quarter. Both charter and box rates are gaining momentum, and we have completed all necessary rechartering activity in excess of our internal forecasts. The renewed optimism in the market extends to the longer term view of the charterers, who are making charter commitments on newbuilding vessels with deliveries scheduled from 2025 through the end of 2027.

Following the recent placement of an order for an additional two 8,250 TEU vessels for 2027 delivery, our newbuilding orderbook currently consists of 14 vessels, totaling 108,000 TEU, two of which have already been delivered to us.

More importantly, we have now secured multi-year chartering agreements for all our vessels on order, while we have also extended charters of certain existing vessels. As a result of this chartering activity, over the past three months we have added $423 million to our contracted revenue backlog that today stands at $2.5 billion with an average charter duration of 2.9 years.

All the vessels in our newbuilding orderbook are Methanol ready, future proofing a portion of our fleet on green fuel usage. We have also arranged very conservative financing for the first eight newbuildings at competitive rates to ensure that we are able to maintain a strong liquidity profile to support continued opportunistic fleet expansion.

In our drybulk vessels segment, we have added an additional Capesize vessel to our fleet, increasing our fleet to 10 vessels in total. We are continuing to explore ways to increase our exposure to this market. The drybulk market has performed above expectations, and we are confident that an eventual Chinese recovery will drive the market higher. Our entry point into the dry bulk market is relatively low, and our breakeven is therefore easily achievable.

Despite geopolitical uncertainties, most of the economies around the world are performing relatively well and are displaying no signs of recession. The biggest risk to our market outlook comes from trade hurdles that various countries are putting in place in the form of tariffs and trade restrictions on energy as well as manufactured goods. Despite the positive short-term impacts of these practices, we believe they will ultimately result in trade contraction in the long term.

In the meantime, our strategy has continued to result in consistent solid results. We will continue to explore growth opportunities while ensuring the longevity of our investments for the benefit of our shareholders.”

Three months ended March 31, 2024 compared to the three months ended March 31, 2023

During the three months ended March 31, 2024, Danaos had an average of 68.0 container vessels and 7.0 Capesize drybulk vessels compared to 68.3 container vessels and no drybulk vessels during the three months ended March 31, 2023. Our container vessels utilization for the three months ended March 31, 2024 was 97.3% compared to 96.8% for the three months ended March 31, 2023. The increase in container vessels utilization was mainly due to the decreased days of scheduled dry-docking of our vessels.

Our adjusted net income amounted to $140.0 million, or $7.15 per diluted share, for the three months ended March 31, 2024 compared to $145.3 million, or $7.14 per diluted share, for the three months ended March 31, 2023. We have adjusted our net income in the three months ended March 31, 2024 for a $11.0 million change in fair value of investments and a $0.5 million non-cash finance fees amortization.

Adjusted net income of our container vessels segment amounted to $138.9 million for the three months ended March 31, 2024 compared to $147.8 million for the three months ended March 31, 2023. We adjusted net income of container vessels segment in the three months ended March 31, 2024 for a $0.5 million non-cash finance fees amortization.

Adjusted net income of our drybulk vessels segment amounted to $0.3 million for the three months ended March 31, 2024 compared to none for the three months ended March 31, 2023, as we were not engaged in the drybulk vessels segment during that period.

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

The $5.3 million decrease in adjusted net income for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 is primarily attributable to a $22.2 million increase in total operating expenses, which was partially offset by a $9.8 million increase in operating revenues, a $3.7 million decrease in net finance expenses, a $2.5 million decrease in equity loss on investments and a $0.9 million increase in dividends received.

On a non-adjusted basis, our net income amounted to $150.5 million, or $7.68 earnings per diluted share, for the three months ended March 31, 2024 compared to net income of $146.2 million, or $7.18 earnings per diluted share, for the three months ended March 31, 2023. On a non-adjusted basis, the net income of our container vessels segment amounted to $138.4 million and the net income of our drybulk vessels segment amounted to $0.3 million for the three months ended March 31, 2024.

Operating Revenues Operating revenues increased by 4.0%, or $9.8 million, to $253.4 million in the three months ended March 31, 2024 from $243.6 million in the three months ended March 31, 2023.

Operating revenues of our container vessels segment decreased by 4.2%, or $10.2 million, to $233.4 million in the three months ended March 31, 2024 from $243.6 million in the three months ended March 31, 2023, analyzed as follows:

  • a $3.0 million increase in revenues in the three months ended March 31, 2024 compared to the three months ended March 31, 2023 mainly as a result of higher charter rates and improved vessels utilization;
  • a $2.7 million decrease in revenues in the three months ended March 31, 2024 compared to the three months ended March 31, 2023 due to vessel disposals;
  • a $3.0 million decrease in revenues in the three months ended March 31, 2024 compared to the three months ended March 31, 2023 due to decreased amortization of assumed time charters; and
  • a $7.5 million decrease in revenue in the three months ended March 31, 2024 compared to the three months ended March 31, 2023 due to lower non-cash revenue recognition in accordance with US GAAP.

Operating revenues of our drybulk vessels segment added an incremental $20.0 million of revenues in the three months ended March 31, 2024 compared to no such operating revenues in the three months ended March 31, 2023.

Vessel Operating Expenses Vessel operating expenses increased by $2.5 million to $43.1 million in the three months ended March 31, 2024 from $40.6 million in the three months ended March 31, 2023, primarily as a result of the increase in the average number of vessels in our fleet due to recent dry bulk vessels acquisitions, which was partially offset by the decrease in the average daily operating cost of our vessels to $6,493 per vessel per day for the three months ended March 31, 2024 compared to $6,807 per vessel per day for the three months ended March 31, 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 7.6%, or $2.4 million, to $33.9 million in the three months ended March 31, 2024 from $31.5 million in the three months ended March 31, 2023 mainly due to depreciation expense related to 7 recently acquired Capesize drybulk vessels.

Amortization of Deferred Dry-docking and Special Survey Costs Amortization of deferred dry-docking and special survey costs increased by $1.7 million to $5.5 million in the three months ended March 31, 2024 from $3.8 million in the three months ended March 31, 2023.

General and Administrative Expenses General and administrative expenses increased by $3.4 million, to $10.2 million in the three months ended March 31, 2024 from $6.8 million in the three months ended March 31, 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 $12.4 million to $20.3 million in the three months ended March 31, 2024 from $7.9 million in the three months ended March 31, 2023 primarily as a result of the $12.0 million in voyage expenses related to our recently acquired 7 Capesize drybulk vessels, which generated revenue mainly from voyage charter agreements compared to no such expenses in the three months ended March 31, 2023.

Voyage expenses of container vessels segment increased by $0.4 million to $8.3 million in the three months ended March 31, 2024 from $7.9 million in the three months ended March 31, 2023 mainly due to increased commissions. Total voyage expenses of container vessels comprised $7.8 million commissions and $0.5 million other voyage expenses in the three months ended March 31, 2024.

Voyage expenses of drybulk vessels segment were $12.0 million in the three months ended March 31, 2024 compared to no voyage expenses in the three months ended March 31, 2023. Total voyage expenses of drybulk vessels comprised $1.2 million commissions and $10.8 million other voyage expenses, mainly bunkers consumption and port expenses, in the three months ended March 31, 2024.

Gain on sale of vessels 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 compared to no gain on sale of vessels in the three months ended March 31, 2024.

Interest Expense and Interest Income Interest expense decreased by 53.7%, or $3.6 million, to $3.1 million in the three months ended March 31, 2024 from $6.7 million in the three months ended March 31, 2023. The decrease in interest expense is a result of:

  • a $1.0 million decrease in interest expense due to a decrease in our average indebtedness by $94.0 million between the two periods. Average indebtedness was $413.7 million in the three months ended March 31, 2024, compared to average indebtedness of $507.7 million in the three months ended March 31, 2023. This decrease was partially offset by an increase in our debt service cost by approximately 0.6% as a result of higher interest rates;
  • a $2.4 million decrease in interest expense due to an increase in capitalized interest expense on our vessels under construction in the three months ended March 31, 2024; and
  • a $0.2 million decrease in the amortization of deferred finance costs and debt discount.

As of March 31, 2024, our outstanding debt, gross of deferred finance costs, was $458.6 million, which included $262.8 million principal amount of our Senior Notes. These balances compare to debt of $431.1 million, which included $262.8 million principal amount of our Senior Notes and our leaseback obligation of $66.3 million, gross of deferred finance costs, as of March 31, 2023.

Interest income increased by $0.2 million to $2.9 million in the three months ended March 31, 2024 compared to $2.7 million in the three months ended March 31, 2023.

Gain on investments The gain on investments of $11.9 million in the three months ended March 31, 2024 consisted of the change in fair value of our shareholding interest in Eagle Bulk Shipping Inc. (“EGLE”) of $11.0 million and dividends recognized on these shares of $0.9 million. This compares to no gain in the three months ended March 31, 2023. Following the all-stock merger of EGLE with Star Bulk Carriers Corp. (“SBLK”) completed on April 9, 2024, we currently own 4,070,214 shares of common stock of SBLK.

Equity loss on investments Equity loss on investments amounting to $0.1 million and $2.6 million in the three months March 31, 2024 and March 31, 2023, respectively, relates to our share of initial expenses of a recently established company, Carbon Termination Technologies Corporation (“CTTC”), currently engaged in the research and development of decarbonization technologies for the shipping industry.

Other finance expenses Other finance expenses decreased by $0.1 million to $0.9 million in the three months ended March 31, 2024 compared to $1.0 million in the three months ended March 31, 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 March 31, 2024 and March 31, 2023.

Other income/(expenses), net Other income, net remained stable at $0.2 million in each of the three months ended March 31, 2024 and March 31, 2023.

Adjusted EBITDA Adjusted EBITDA decreased by 1.0%, or $1.8 million, to $177.2 million in the three months ended March 31, 2024 from $179.0 million in the three months ended March 31, 2023. As outlined above, the decrease is mainly attributable to a $18.2 million increase in total operating expenses, which were partially offset by a $12.9 million increase in operating revenues, a $2.5 million decrease in equity loss on investments and a $0.9 million increase in dividends received. Adjusted EBITDA for the three months ended March 31, 2024 is adjusted for a $11.0 million change in fair value of investments. 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 4.1%, or $7.4 million, to $174.2 million in the three months ended March 31, 2024 from $181.6 million in the three months ended March 31, 2023.

Adjusted EBITDA of drybulk vessels segment was $2.2 million in the three months ended March 31, 2024. We did not have drybulk vessel operations in the three months ended March 31, 2023.

Dividend Payment

Danaos has declared a dividend of $0.80 per share of common stock for the first quarter of 2024, which is payable on June 20, 2024 to stockholders of record as of June 11, 2024.

Recent Developments

In February 2024, we entered into agreements to acquire 3 Capesize drybulk vessels aggregating 529,704 DWT for $79.9 million, with expected delivery to us in June through July 2024.

In February and March 2024, we added 4 additional 8,258 TEU newbuildings to our orderbook for an aggregate purchase price of $376.8 million, with expected deliveries from the fourth quarter of 2026 through the third quarter of 2027.

In April and May 2024, we took delivery of two container vessels under construction, Hull No. C7100-7 and Hull No. HN4009 and named the vessels Interasia Accelerate and Catherine C, respectively.

Conference Call and Webcast

On Tuesday, May 28, 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 9489 (UK Toll Free Dial In) or +44 (0) 2075 441 375 (Standard International Dial In). Please indicate to the operator that you wish to join the Danaos Corporation earnings call.

A telephonic replay of the conference call will be available until June 4, 2024 by dialing 1 877 344 7529 (US Toll Free Dial In) or 1-412-317-0088 (Standard International Dial In) and using 4069360# 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 69 container vessels aggregating 434,268 TEUs and 12 under construction container vessels aggregating 92,771 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 7 Capesize drybulk vessels aggregating 1,231,157 DWT, while we have also agreed to acquire a further 3 Capesize drybulk vessels aggregating 529,704 DWT. Our fleet is chartered to many of the world's largest liner companies on fixed-rate charters. Our long track record of success is predicated on our efficient and rigorous operational standards and environmental controls. Danaos Corporation's shares trade on the New York Stock Exchange under the symbol "DAC".

Forward-Looking Statements Matters discussed in this release may constitute forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions. Although Danaos Corporation believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Danaos Corporation cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in Danaos Corporation's operating expenses, including bunker prices, drydocking and insurance costs, our ability to operate profitably in the drybulk sector, ability to obtain financing and comply with covenants in our financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, including the conflict in Ukraine and related sanctions, the conflict in Israel and the Gaza Strip, potential disruption of shipping routes 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)

 

First

Quarter

First

Quarter

 

2024

2023

Ownership Days

 

6,185

 

6,150

Less Off-hire Days:

 

Scheduled Off-hire Days

 

(67)

 

(150)

Other Off-hire Days

 

(99)

(44)

Operating Days(1)

 

6,019

 

5,956

Vessel Utilization

 

97.3%

96.8%

 

 

 

 

 

Operating Revenues (in '000s of US$)

 

$233,411

$243,574

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

 

(488)

 

(415)

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

 

232,923

243,159

Time Charter Equivalent US$/per day

 

$38,698

 

$40,826

 

Drybulk vessels fleet utilization

Vessel Utilization (No. of Days)

 

First Quarter

First Quarter

 

2024

2023

Ownership Days

 

637

 

-

Less Off-hire Days:

 

Scheduled Off-hire Days

 

(31)

 

-

Other Off-hire Days

 

(10)

-

Operating Days(1)

 

596

 

-

Vessel Utilization

 

93.6%

 

 

 

 

 

Operating Revenues (in '000s of US$)

 

$20,038

-

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

 

(10,827)

 

-

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

 

9,211

-

Time Charter Equivalent US$/per day

 

$15,455

 

-

 

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.

Fleet List

The following table describes in detail our container vessels deployment profile as of May 27, 2024:

Vessel Name

Vessel Size (TEU) (1)

 

Year Built

 

Expiration of Charter(2)

Hyundai Ambition

13,100

 

2012

 

April 2027

Hyundai Speed

13,100

 

2012

 

April 2027

Hyundai Smart

13,100

 

2012

 

June 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

 

April 2027

Express Berlin

10,100

 

2011

 

August 2026

Express Athens

10,100

 

2011

 

April 2027

Le Havre

9,580

 

2006

 

June 2028

Pusan C

9,580

 

2006

 

May 2028

Bremen

9,012

 

2009

 

January 2028

C Hamburg

9,012

 

2009

 

January 2028

Niledutch Lion

8,626

 

2008

 

May 2026

Kota Manzanillo

8,533

 

2005

 

February 2026

Belita

8,533

 

2006

 

July 2026

CMA CGM Melisande

8,530

 

2012

 

January 2028

CMA CGM Attila

8,530

 

2011

 

May 2027

CMA CGM Tancredi

8,530

 

2011

 

July 2027

CMA CGM Bianca

8,530

 

2011

 

September 2027

CMA CGM Samson

8,530

 

2011

 

November 2027

America

8,468

 

2004

 

April 2028

Europe

8,468

 

2004

 

May 2028

Kota Santos

8,463

 

2005

 

August 2026

Catherine C

8,010

 

2024

 

May 2027

Interasia Accelerate

7,165

 

2024

 

April 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

Zim Savannah

6,402

 

2002

 

May 2025

Dimitra C

6,402

 

2002

 

February 2025

Suez Canal

5,610

 

2002

 

April 2026

Kota Lima

5,544

 

2002

 

November 2024

Wide Alpha

5,466

 

2014

 

May 2025

Stephanie C

5,466

 

2014

 

June 2025

Maersk Euphrates

5,466

 

2014

 

July 2025

Wide Hotel

5,466

 

2015

 

July 2025

Wide India

5,466

 

2015

 

November 2025

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

 

November 2024

Rio Grande

4,253

 

2008

 

November 2026

Merve A

4,253

 

2008

 

September 2025

Kingston

4,253

 

2008

 

June 2025

Monaco (ex ZIM Monaco)

4,253

 

2009

 

October 2024

Dalian

4,253

 

2009

 

March 2026

ZIM Luanda

4,253

 

2009

 

August 2025

Dimitris C

3,430

 

2001

 

November 2025

Express Black Sea

3,400

 

2011

 

January 2025

Express Spain

3,400

 

2011

 

January 2025

Express Argentina

3,400

 

2010

 

September 2024

Express Brazil

3,400

 

2010

 

June 2025

Express France

3,400

 

2010

 

September 2025

Singapore

3,314

 

2004

 

March 2025

Colombo

3,314

 

2004

 

January 2025

Zebra

2,602

 

2001

 

November 2024

Artotina

2,524

 

2001

 

May 2025

Advance

2,200

 

1997

 

January 2025

Future

2,200

 

1997

 

December 2024

Sprinter

2,200

 

1997

 

December 2024

Bridge

2,200

 

1998

 

December 2024

Progress C

2,200

 

1998

 

November 2024

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.

Container vessels under construction as of May 27, 2024:

 

Hull Number

Vessel Size (TEU)

 

Expected Delivery Year

 

 

Minimum Charter Duration

Hull No. C7100-8

7,165

 

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

 

 

2 Years

Hull No. CV5900-08

6,014

 

2025

 

 

2 Years

Hull No. YZJ2023-1556

8,258

 

2026

 

 

3 Years

Hull No. YZJ2023-1557

8,258

 

2026

 

 

3 Years

Hull No. YZJ2024-1612

8,258

 

2026

 

 

3 Years

Hull No. YZJ2024-1613

8,258

 

2027

 

 

3 Years

Hull No. YZJ2024-1625

8,258

 

2027

 

 

3 Years

Hull No. YZJ2024-1626

8,258

 

2027

 

 

3 Years

The following table describes the details of our Capesize drybulk vessels as of May 27, 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

 

 

 

Guo May (2)

176,536

 

2011

 

 

 

Xin Hang (2)

178,043

 

2010

 

 

 

Star Audrey (2)

175,125

 

2011

 

 

 

(1)

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

  (2)

The vessels are expected to be delivered in June through 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

March 31,

March 31,

 

 

2024

 

2023

 

 

 

 

 

OPERATING REVENUES

$253,449

 

$243,574

OPERATING EXPENSES

 

 

 

 

Vessel operating expenses

(43,114)

 

(40,639)

 

Depreciation & amortization

(39,315)

 

(35,364)

 

General & administrative

(10,244)

 

(6,845)

 

Other operating expenses

(20,342)

 

(7,883)

 

Gain on sale of vessels

-

 

1,639

Income From Operations

140,434

 

154,482

OTHER INCOME/(EXPENSES)

 

 

 

 

Interest income

2,936

 

2,723

 

Interest expense

(3,124)

 

(6,722)

 

Gain on investments

11,911

-

 

Other finance expenses

(882)

 

(976)

 

Equity loss on investments

(109)

 

(2,588)

 

Other income/(expenses), net

235

 

175

 

Realized loss on derivatives

(903)

 

(893)

Total Other Income/(Expenses), net

10,064

 

(8,281)

Net Income

150,498

 

146,201

EARNINGS PER SHARE

 

 

 

Basic earnings per share

$7.75

 

$7.18

Diluted earnings per share

$7.68

 

$7.18

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

19,412

 

20,349

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

19,584

 

20,349

Non-GAAP Measures1 Reconciliation of Net Income to Adjusted Net Income – Unaudited

 

 

Three months ended

 

Three months ended

March 31,

March 31,

 

2024

 

2023

Net Income

$150,498

 

$146,201

Change in fair value of investments

(10,979)

 

-

Gain on sale of vessels

-

 

(1,639)

Amortization of financing fees, debt discount & finance fees accrued

497

 

693

Adjusted Net Income

$140,016

 

$145,255

Adjusted Earnings Per Share, diluted

$7.15

 

$7.14

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

19,584

 

20,349

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 months ended March 31, 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

March 31,

December 31,

 

 

 

2024

 

2023

ASSETS

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Cash, cash equivalents and restricted cash

 

$324,326

 

$271,809

 

Accounts receivable, net

 

13,383

 

9,931

 

Other current assets

 

225,422

 

220,030

 

 

 

563,131

 

501,770

NON-CURRENT ASSETS

 

 

 

 

 

Fixed assets, net

 

2,711,984

 

2,746,541

 

Advances for vessels acquisition and vessels under construction

 

421,887

 

301,916

 

Deferred charges, net

 

36,069

 

38,012

 

Other non-current assets

 

76,679

 

72,897

 

 

 

3,246,619

 

3,159,366

TOTAL ASSETS

 

$3,809,750

 

$3,661,136

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Long-term debt, current portion

 

$20,495

 

$21,300

 

Accounts payable, accrued liabilities & other current liabilities

 

124,327

 

146,860

 

 

 

144,822

 

168,160

LONG-TERM LIABILITIES

 

 

 

 

 

Long-term debt, net

 

431,491

 

382,874

 

Other long-term liabilities

 

83,547

 

93,785

 

 

 

515,038

 

476,659

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

Common stock

 

194

 

194

 

Additional paid-in capital

 

687,634

 

690,190

 

Accumulated other comprehensive loss

 

(74,813)

 

(75,979)

 

Retained earnings

 

2,536,875

 

2,401,912

 

 

 

3,149,890

 

3,016,317

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$3,809,750

 

$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

March 31,

March 31,

 

2024

 

2023

Operating Activities:

 

 

 

Net income

$150,498

 

$146,201

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

 

 

 

Depreciation and amortization of right-of-use assets

33,863

 

31,529

Amortization of deferred drydocking & special survey costs, finance cost, debt discount and other finance fees accrued

5,949

 

4,528

Amortization of assumed time charters

(3,498)

 

(6,536)

Prior service cost and periodic cost

257

 

492

Gain on investments

(10,979)

 

-

Gain on sale of vessels

-

 

(1,639)

Payments for drydocking/special survey

(4,169)

 

(9,742)

Amortization of deferred realized losses on cash flow interest rate swaps

903

 

893

Equity loss on investments

109

 

2,588

Stock based compensation

1,576

 

-

Accounts receivable

(3,452)

 

(1,939)

Other assets, current and non-current

11,887

 

(8,794)

Accounts payable and accrued liabilities

(6,228)

 

(5,085)

Other liabilities, current and long-term

(23,424)

 

(24,902)

Net Cash provided by Operating Activities

153,292

 

127,594

 

 

 

 

Investing Activities:

 

 

 

Vessel additions and advances for vessels under construction

(124,127)

 

(5,736)

Proceeds and advances received from sale of vessels

716

3,914

Investments

-

 

(4,263)

Net Cash used in Investing Activities

(123,411)

 

(6,085)

 

 

 

 

Financing Activities:

 

 

 

Proceeds from long-term debt, net

55,000

 

-

Debt repayment

(6,875)

 

(6,875)

Payments of leaseback obligations

-

 

(6,629)

Dividends paid

(15,535)

 

(15,262)

Repurchase of common stock

(4,129)

 

(581)

Finance costs

(5,825)

 

(250)

Net Cash provided by/(used in) Financing Activities

22,636

 

(29,597)

Net increase in cash and cash equivalents

52,517

 

91,912

Cash and cash equivalents, beginning of period

271,809

 

267,668

Cash and cash equivalents, end of period

$324,326

 

$359,580

DANAOS CORPORATION Reconciliation of Net Income to Adjusted EBITDA - Unaudited (Expressed in thousands of United States dollars)

 

 

Three months ended

 

Three months ended

 

Last twelve months

 

Last twelve months

March 31,

March 31,

March 31,

December 31,

 

2024

 

2023

 

2024

 

2023

Net income

$150,498

 

$146,201

 

$580,596

 

$576,299

Depreciation and amortization of right-of-use assets

33,863

 

31,529

 

131,621

 

129,287

Amortization of deferred drydocking & special survey costs

5,452

 

3,835

 

20,280

 

18,663

Amortization of assumed time charters

(3,498)

 

(6,536)

 

(18,184)

 

(21,222)

Amortization of deferred finance costs, debt discount and commitment fees

1,273

 

1,451

 

4,958

 

5,136

Amortization of deferred realized losses on interest rate swaps

903

 

893

 

3,632

 

3,622

Interest income

(2,936)

 

(2,723)

 

(12,346)

 

(12,133)

Interest expense

2,627

 

6,029

 

14,860

 

18,262

Change in fair value of investments

(10,979)

 

-

 

(28,846)

 

(17,867)

Stock based compensation

-

-

6,340

6,340

Loss on debt extinguishment

-

 

-

 

2,254

 

2,254

Gain on sale of vessels

-

(1,639)

-

(1,639)

Adjusted EBITDA(1)

$177,203

 

$179,040

 

$705,165

 

$707,002

1)

Adjusted EBITDA represents net income before interest income and expense, depreciation and amortization of right-of-use assets, 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, change in fair value of investment, stock based compensation, loss on debt extinguishment and gain on 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 Adjusted EBITDA is useful in evaluating our operating performance compared to that of other companies in our industry because the calculation of Adjusted EBITDA generally eliminates the effects of financings, income taxes and the accounting effects of capital expenditures and acquisitions, items which may vary for different companies for reasons unrelated to overall operating performance. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. 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 March 31, 2024 and March 31, 2023; and the last twelve months ended March 31, 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 March 31, 2024 and Three Months Ended March 31, 2023 Unaudited (Expressed in thousands of United States dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

March 31, 2024

 

 

March 31, 2023

 

 

Container Vessels

 

Drybulk Vessels

 

Other

 

Total

 

 

Container Vessels

 

Drybulk Vessels

 

Other

 

Total

Net income/(loss)

 

$138,359

 

$337

 

$11,802

 

$150,498

 

 

$148,789

 

-

 

$(2,588)

 

$146,201

Depreciation and amortization of right-of-use assets

 

32,008

 

1,855

 

-

 

33,863

 

 

31,529

 

-

 

-

 

31,529

Amortization of deferred drydocking & special survey costs

 

5,452

 

-

 

-

 

5,452

 

 

3,835

 

-

 

-

 

3,835

Amortization of assumed time charters

 

(3,498)

 

-

 

-

 

(3,498)

 

 

(6,536)

 

-

 

-

 

(6,536)

Amortization of deferred finance costs, debt discount and commitment fees

 

1,273

 

-

 

-

 

1,273

 

 

1,451

 

-

 

-

 

1,451

Amortization of deferred realized losses on interest rate swaps

 

903

 

-

 

-

 

903

 

 

893

 

-

 

-

 

893

Interest income

 

(2,936)

 

-

 

-

 

(2,936)

 

 

(2,723)

 

-

 

-

 

(2,723)

Interest expense

 

2,627

 

-

 

-

 

2,627

 

 

6,029

 

-

 

-

 

6,029

Change in fair value of investments

 

-

 

-

 

(10,979)

 

(10,979)

 

 

-

 

-

 

-

 

-

Gain on sale of vessels

 

-

 

-

 

-

 

-

 

 

(1,639)

 

-

 

-

 

(1,639)

Adjusted EBITDA(1)

 

$174,188

 

$2,192

 

$823

 

$177,203

 

 

$181,628

 

-

 

$(2,588)

 

$179,040

1)

Adjusted EBITDA represents net income before interest income and expense, depreciation and amortization of right-of-use assets, 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, change in fair value of investments and gain on 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 Adjusted EBITDA is useful in evaluating our operating performance compared to that of other companies in our industry because the calculation of Adjusted EBITDA generally eliminates the effects of financings, income taxes and the accounting effects of capital expenditures and acquisitions, items which may vary for different companies for reasons unrelated to overall operating performance. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. 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 March 31, 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 March 31, 2024 and Three Months Ended March 31, 2023 Unaudited (Expressed in thousands of United States dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

March 31, 2024

 

 

March 31, 2023

 

 

Container Vessels

 

Drybulk Vessels

 

Other

 

Total

 

 

Container Vessels

 

Drybulk Vessels

 

Other

 

Total

Net income/(loss)

 

$138,359

 

$337

 

$11,802

 

$150,498

 

 

$148,789

 

-

 

$(2,588)

 

$146,201

Change in fair value of investments

 

-

 

-

 

(10,979)

 

(10,979)

 

 

-

 

-

 

-

 

-

Amortization of financing fees & debt discount

 

497

 

-

 

-

 

497

 

 

693

 

-

 

-

 

693

Gain on sale of vessels

 

-

 

-

 

-

 

-

 

 

(1,639)

 

-

 

-

 

(1,639)

Adjusted Net income/(loss)(1)

 

$138,856

 

$337

 

$823

 

$140,016

 

 

$147,843

 

-

 

$(2,588)

 

$145,255

Adjusted Earnings per Share, diluted

 

 

 

 

 

 

 

$7.15

 

 

 

 

-

 

-

 

$7.14

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

 

19,584

 

 

 

 

20,349

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 months ended March 31, 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.

Company Contact: Evangelos Chatzis Chief Financial Officer Danaos Corporation Athens, Greece Tel.: +30 210 419 6480 E-Mail: cfo@danaos.com

Investor Relations and Financial Media Rose & Company New York Tel. 212-359-2228 E-Mail: danaos@rosecoglobal.com

Source: Danaos Corporation

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