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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240528636350/en/
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
Danaos (NYSE:DAC)
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