Danaos Corporation (“Danaos”) (NYSE:DAC), one of the world’s
largest independent owners of containerships, today reported
unaudited results for the quarter ended March 31, 2021.
Highlights for the First Quarter Ended March 31,
2021:
- Adjusted net income1 of $58.0 million, or $2.83 per share,
for the three months ended March 31, 2021 compared to $33.3
million, or $1.34 per share, for the three months ended March 31,
2020, an increase of 74.2%.
- Operating revenues of $132.1 million for the three months
ended March 31, 2021 compared to $106.2 million for the three
months ended March 31, 2020, an increase of 24.4%.
- Adjusted EBITDA1 of $96.3 million for the three
months ended March 31, 2021 compared to $71.9 million for the three
months ended March 31, 2020, an increase of 33.9%.
- Total contracted operating revenues were $1.2 billion as of
March 31, 2021, with charters extending through 2028 and remaining
average contracted charter duration of 2.9 years, weighted by
aggregate contracted charter hire.
- Charter coverage of 91% for the next 12 months based on
current operating revenues and 88% in terms of contracted operating
days.
- Initiated a regular quarterly dividend with a dividend of
$0.50 per share of common stock for the first quarter of 2021. The
dividend is payable on June 9, 2021 to stockholders of record as of
May 27, 2021.
Three Months Ended March 31,
2021
Financial Summary -
Unaudited
(Expressed in thousands of United
States dollars, except per share amounts)
Three months ended
Three months ended
March 31,
March 31,
2021
2020
Operating revenues
$132,118
$106,196
Net income
$296,780
$29,089
Adjusted net income1
$58,011
$33,281
Earnings per share, diluted
$14.47
$1.17
Adjusted earnings per share, diluted1
$2.83
$1.34
Diluted weighted average number of shares
(in thousands)
20,513
24,789
Adjusted EBITDA1
$96,282
$71,918
1 Adjusted net income, adjusted earnings
per share and adjusted EBITDA are non-GAAP measures. Refer to the
reconciliation of net income to adjusted net income and net income
to adjusted EBITDA.
Danaos’ CEO Dr. John Coustas
commented:
"The dramatic turnaround and strength of the market which we
experienced in the beginning of the year continues unabated, if not
stronger. The continuation of the pandemic and the ensuing slowdown
in the terminal operations have exacerbated demand and the liner
sector is at the limit of its capacity. The blockage of the Suez
Canal further contributed to the disruption in the supply chain and
conditions will likely not normalize before the end of the year,
possibly after the peak season.
Liner companies are reporting record profits and, more
importantly, are signing multi-year contracts at significantly
higher levels which will keep their profitability at elevated
levels. On the non-operating owners front, charter rates have
skyrocketed to levels not seen for at least 10 years and what is
more important duration has been significantly increased so that
vessels over 4,000 TEU can secure 4+ years employment at very
healthy levels.
This euphoria due to the sharp increase in rates and confidence
that the market will remain strong has led to a dramatic increase
in newbuilding ordering. As a result, the orderbook now stands at
17% of the existing fleet which is higher compared to the 9% nadir
at the end of 2020 but still much lower than the 50% it reached in
2008.
Fortunately, the lack of shipyard capacity and the hesitance of
many market participants to order vessels with conventional fuel
propulsion both are inhibiting factors for new orders and are
keeping a lid on excessive ordering. In any event, the recently
ordered vessels will not deliver until at least 2023, and the next
two years should be lean in terms of fleet supply growth. We
believe that the expected strong demand growth post pandemic will
comfortably absorb the existing orderbook.
As far as Danaos is concerned we are currently in the best ever
position and reaping the benefits of the current market
environment. On April 12th we completed our refinancing on very
competitive terms and also positioned the company successfully in
the US bond market, giving us access to a very significant pool of
capital. The amortization profile of our debt is resulting in
significant free cash flow for growth opportunities.
The stellar performance of the liner sector had a number of
significant consequences for us. First, our shareholding in ZIM is
today valued at around $400 million. Secondly, the dramatic cash
flow generation of Zim and HMM induced them to redeem early the
bonds which we were holding so we will have a $75 million cash
injection in the second quarter of 2021. Thirdly, the liner sector
performance also eliminates counterparty risk for the foreseeable
future.
On the chartering front every fixture we concluded was done at a
new record level. These fixtures are beginning to take effect and
we expect to see improved metrics for every single quarter for this
year.
Our strong financial standing and optimistic view for the future
has led the Board to decide to reinstate a fixed quarterly dividend
of $0.50 per share. Danaos has been repositioned as a growth
company and has handsomely rewarded its shareholders through a
dramatic share appreciation of greater than 1,000% since our
November 2019 equity offering. We believe that our new fixed
dividend will both expand our shareholder base to a new group of
yield driven institutional investors and also enhance liquidity of
the stock.
All the right steps that the company has undertaken in the last
couple of years have been greatly appreciated by the market and we
will continue along the same path in the future."
Three months ended March 31, 2021
compared to the three months ended March 31, 2020
During the three months ended March 31, 2021, Danaos had an
average of 60.0 containerships compared to 55.7 containerships
during the three months ended March 31, 2020. Our fleet utilization
for the three months ended March 31, 2021 was 98.6% compared to
91.3% for the three months ended March 31, 2020. Adjusted fleet
utilization, excluding the effect of 188 days of incremental
off-hire due to shipyard delays related to the COVID-19 pandemic,
was 95% in the three months ended March 31, 2020.
Our adjusted net income amounted to $58.0 million, or $2.83 per
share, for the three months ended March 31, 2021 compared to $33.3
million, or $1.34 per share, for the three months ended March 31,
2020. We have adjusted our net income in the three months ended
March 31, 2021 for the change in fair value of our investment in
ZIM of $247.9 million, a non-cash fees amortization and accrued
finance fees charge of $5.0 million and stock-based compensation of
$4.1 million. Please refer to the Adjusted Net Income
reconciliation table, which appears later in this earnings
release.
The increase of $24.7 million in adjusted net income for the
three months ended March 31, 2021 compared to the three months
ended March 31, 2020 is attributable mainly to a $25.9 million
increase in operating revenues, a partial collection of common
benefit claim of $3.9 million from Hanjin Shipping, a $2.5 million
decrease in net finance expenses and a $0.3 million increase in the
operating performance of our equity investment in Gemini
Shipholdings Corporation (“Gemini”), which were partially offset by
a $7.9 million increase in total operating expenses.
On a non-adjusted basis, our net income amounted to $296.8
million, or $14.47 earnings per diluted share, for the three months
ended March 31, 2021 compared to net income of $29.1 million, or
$1.17 earnings per diluted share, for the three months ended March
31, 2020.
Operating Revenues Operating revenues increased by 24.4%,
or $25.9 million, to $132.1 million in the three months ended March
31, 2021 from $106.2 million in the three months ended March 31,
2020.
Operating revenues for the three months ended March 31, 2021
reflect:
- a $10.5 million increase in revenues in the three months ended
March 31, 2021 compared to the three months ended March 31, 2020
due to the incremental revenue generated by the newly-acquired
vessels; and
- a $15.4 million increase in revenues in the three months ended
March 31, 2021 compared to the three months ended March 31, 2020
mainly as a result of higher charter rates and improved fleet
utilization.
Vessel Operating Expenses Vessel operating expenses
increased by $5.1 million to $31.1 million in the three months
ended March 31, 2021 from $26.0 million in the three months ended
March 31, 2020, primarily as a result of the increase in the
average number of vessels in our fleet and by an increase in the
average daily operating cost of $5,954 per vessel per day for
vessels on time charter for the three months ended March 31, 2021
compared to $5,522 per vessel per day for the three months ended
March 31, 2020. The average daily operating cost increased mainly
due to the COVID-19 related increase in crew remuneration in the
three months ended March 31, 2021. Management believes that our
daily operating cost remains 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 4.9%, or $1.2
million, to $25.8 million in the three months ended March 31, 2021
from $24.6 million in the three months ended March 31, 2020 mainly
due to the acquisition of five vessels and installation of
scrubbers on nine of our vessels in the year ended December 31,
2020.
Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs
increased by $0.2 million to $2.5 million in the three months ended
March 31, 2021 from $2.3 million in the three months ended March
31, 2020.
General and Administrative Expenses General and
administrative expenses increased by $5.1 million to $10.9 million
in the three months ended March 31, 2021, from $5.8 million in the
three months ended March 31, 2020. The increase was mainly due to a
$4.6 million increase in stock-based compensation and increased
management fees due to the increased size of our fleet.
Other Operating Expenses Other Operating Expenses include
Voyage Expenses.
Voyage Expenses Voyage expenses increased by $0.2 million to
$4.2 million in the three months ended March 31, 2021 from $4.0
million in the three months ended March 31, 2020 primarily as a
result of the increase in the average number of vessels in our
fleet.
Interest Expense and Interest Income Interest expense
decreased by 7.4%, or $1.2 million, to $15.1 million in the three
months ended March 31, 2021 from $16.3 million in the three months
ended March 31, 2020. The decrease in interest expense is
attributable to:
(i) a $2.0 million decrease in interest
expense due to a decrease in average cost of debt service by
approximately 1.5%, which was partially offset by a $70.3 million
increase in our average debt (including leaseback obligations), to
$1,614.5 million in the three months ended March 31, 2021, compared
to $1,544.2 million in the three months ended March 31, 2020;
and
(ii) a $0.8 million increase in the
amortization of deferred finance costs and debt discount related to
our debt.
Our total outstanding debt as of March 31, 2021, reflects an
additional amount of $300 million relating to our Senior Notes
issued in February 2021, with net proceeds of $294.4 million placed
in an escrow account. These net proceeds were used, together with
the net proceeds from a new $815 million senior secured credit
facility and a new $135 million leaseback arrangement, each drawn
in April 2021, to refinance a substantial majority of our
outstanding senior secured indebtedness on April 12, 2021. See
“Recent Developments”.
As of March 31, 2021, our outstanding debt, net of $294.4
million escrowed net cash proceeds from the Senior Notes and gross
of deferred finance costs, was $1,306.8 million and our leaseback
obligation was $117.5 million compared to our outstanding debt of
$1,396.3 million and our leaseback obligation of $134.3 million as
of March 31, 2020.
Interest income increased by $0.3 million to $2.0 million in the
three months ended March 31, 2021 compared to $1.7 million in the
three months ended March 31, 2020.
Change in fair value of investments The change in fair
value of investments of $247.875 million relates to the change in
fair value of our shareholding interest in ZIM, which completed its
initial public offering and listing on the New York Stock Exchange
of its ordinary shares on January 27, 2021. We currently own
10,186,950 ordinary shares of ZIM, which were valued at $247.95
million as of March 31, 2021 compared to the book value of these
shares of $75 thousand as of December 31, 2020.
Other finance costs, net Other finance costs, net
decreased by $0.2 million to $0.4 million in the three months ended
March 31, 2021 compared to $0.6 million in the three months ended
March 31, 2020.
Equity income on investments Equity income/(loss) on
investments increased by $0.3 million to $1.8 million of income on
investments in the three months ended March 31, 2021 compared to a
$1.5 million income on investments in the three months ended March
31, 2020 due to the improved operating performance of Gemini, in
which the Company has a 49% shareholding interest.
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, 2021 and March 31,
2020.
Other income, net Other income, net was $4.0 million in
income in the three months ended March 31, 2021 compared to $0.2
million in the three months ended March 31, 2020. The increase was
mainly due to the collection from Hanjin Shipping of $3.9 million
as a partial payment of common benefit claim and interest.
Adjusted EBITDA Adjusted EBITDA increased by 33.9%, or
$24.4 million, to $96.3 million in the three months ended March 31,
2021 from $71.9 million in the three months ended March 31, 2020.
As outlined above, the increase is mainly attributable to a $25.9
million increase in operating revenues, a partial collection of
common benefit claim of $3.9 million from Hanjin Shipping and a
$0.3 million increase in the operating performance of our equity
investees, which were partially offset by a $5.7 million increase
in total operating expenses. Adjusted EBITDA for the three months
ended March 31, 2021 is adjusted for change in fair value of
investments of $247.9 million and stock based compensation of $4.9
million. Tables reconciling Adjusted EBITDA to Net Income can be
found at the end of this earnings release.
Dividend Payment
On May 10, 2021 we declared a dividend of $0.50 per share of
common stock for the first quarter of 2021, which is payable on
June 9, 2021 to stockholders of record as of May 27, 2021. We
intend to pay regular quarterly dividends on our common stock.
Payments of dividends are subject to the discretion of our board of
directors, provisions of Marshall Islands law affecting the payment
of distributions to stockholders and the terms of our credit
facilities, which permit the payment of dividends so long as there
has been no event of default thereunder nor would occur as a result
of such dividend payment, and will be subject to conditions in the
container shipping industry, our financial performance and us
having sufficient available excess cash and distributable
reserves.
Recent Developments
On April 12, 2021, the Company refinanced a substantial majority
of its outstanding senior secured indebtedness with the proceeds
from a $815 million senior secured credit facility with Citibank
N.A. and National Westminster Bank plc, a $135 million sale
leaseback agreement with Oriental Fleet International Company
Limited, an affiliate of COSCO Shipping Lease Co., Ltd., with
respect to five vessels, and the net proceeds of the Company’s
February 2021 offering of $300 million of 8.500% Senior Notes due
2028.
Conference Call and
Webcast
On Tuesday, May 11, 2021 at 9:00 A.M. ET, the Company's
management will host a conference call to discuss the results.
Participants should dial into the call 10 minutes before the
scheduled time using the following numbers: 1 844 802 2437 (US Toll
Free Dial In), 0800 279 9489 (UK Toll Free Dial In) or +44 (0) 2075
441 375 (Standard International Dial In). Please indicate to the
operator that you wish to join the Danaos Corporation earnings
call.
A telephonic replay of the conference call will be available
until May 18, 2021 by dialing 1 877 344 7529 (US Toll Free Dial In)
or 1-412-317-0088 (Standard International Dial In) and using
10156175# as the access code.
Audio Webcast There will also be a live and then
archived webcast of the conference call on the Danaos
website (www.danaos.com). Participants of the live webcast should
register on the website approximately 10 minutes prior to the start
of the webcast.
Slide Presentation A slide presentation regarding the
Company and the containership industry will also be available on
the Danaos website (www.danaos.com).
About Danaos Corporation
Danaos Corporation is one of the largest independent owners of
modern, large-size containerships. Our current fleet of 65
containerships aggregating 403,793 TEUs, including five vessels
owned by Gemini Shipholdings Corporation, a joint venture, ranks
Danaos among the largest containership charter owners in the world
based on total TEU capacity. Our fleet is chartered to many of the
world's largest liner companies on fixed-rate charters. Our long
track record of success is predicated on our efficient and rigorous
operational standards and environmental controls. Danaos
Corporation's shares trade on the New York Stock Exchange under the
symbol "DAC".
Forward-Looking
Statements
Matters discussed in this release may constitute forward-looking
statements within the meaning of the safe harbor provisions of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements reflect
our current views with respect to future events and financial
performance and may include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts. The forward-looking statements in
this release are based upon various assumptions. Although Danaos
Corporation believes that these assumptions were reasonable when
made, because these assumptions are inherently subject to
significant uncertainties and contingencies which are difficult or
impossible to predict and are beyond our control, Danaos
Corporation cannot assure you that it will achieve or accomplish
these expectations, beliefs or projections. Important factors that,
in our view, could cause actual results to differ materially from
those discussed in the forward-looking statements include the
impact of the COVID-19 pandemic and efforts throughout the world to
contain its spread, including effects on global economic activity,
demand for seaborne transportation of containerized cargo, the
ability and willingness of charterers to perform their obligations
to us, charter rates for containerships, shipyards performing
scrubber installations, drydocking and repairs, changing vessel
crews and availability of financing; Danaos’ ability to achieve the
expected benefits of the 2021 debt refinancing and comply with the
terms of its new credit facilities and other financing agreements;
the strength of world economies and currencies, general market
conditions, including changes in charter hire rates and vessel
values, charter counterparty performance, changes in demand that
may affect attitudes of time charterers to scheduled and
unscheduled dry-docking, changes in Danaos Corporation's operating
expenses, including bunker prices, dry-docking and insurance costs,
ability to obtain financing and comply with covenants in our
financing arrangements, actions taken by regulatory authorities,
potential liability from pending or future litigation, domestic and
international political conditions, potential disruption of
shipping routes due to accidents and political events or acts by
terrorists.
Risks and uncertainties are further described in reports filed
by Danaos Corporation with the U.S. Securities and Exchange
Commission.
Visit our website at www.danaos.com.
Appendix
Fleet Utilization
Danaos had 51 unscheduled off-hire days in the three months
ended March 31, 2021. The following table summarizes vessel
utilization and the impact of the off-hire days on the Company’s
revenue.
Vessel Utilization (No. of
Days)
First Quarter
First Quarter
2021
2020
Ownership Days
5,400
5,073
Less Off-hire Days:
Scheduled Off-hire Days
(22)
(336)
Other Off-hire Days
(51)
(104)
Operating Days
5,327
4,633
Vessel Utilization
98.6%
91.3%
Operating Revenues (in '000s of US
Dollars)
$132,118
$106,196
Average Gross Daily Charter
Rate
$24,802
$22,922
Fleet List
The following table describes in detail our fleet deployment
profile as of May 10, 2021:
Vessel Name
Vessel Size
(TEU)
Year Built
Expiration of
Charter(1)
Hyundai Ambition
13,100
2012
June 2024
Hyundai Speed
13,100
2012
June 2024
Hyundai Smart
13,100
2012
May 2024
Hyundai Respect
13,100
2012
March 2024
Hyundai Honour
13,100
2012
February 2024
Express Rome
10,100
2011
February 2022
Express Berlin
10,100
2011
April 2022
Express Athens
10,100
2011
February 2022
Le Havre
9,580
2006
April 2023
Pusan C
9,580
2006
March 2023
Bremen
9,012
2009
December 2022
C Hamburg
9,012
2009
January 2023
Niledutch Lion
8,626
2008
February 2022
Charleston
8,533
2005
December 2021
CMA CGM Melisande
8,530
2012
May 2024
CMA CGM Attila
8,530
2011
October 2023
CMA CGM Tancredi
8,530
2011
November 2023
CMA CGM Bianca
8,530
2011
January 2024
CMA CGM Samson
8,530
2011
March 2024
America
8,468
2004
February 2023
Europe
8,468
2004
March 2023
Phoebe
8,463
2005
April 2022
CMA CGM Moliere
6,500
2009
February 2022
CMA CGM Musset
6,500
2010
August 2022
CMA CGM Nerval
6,500
2010
October 2022
CMA CGM Rabelais
6,500
2010
December 2022
CMA CGM Racine
6,500
2010
January 2023
YM Mandate
6,500
2010
January 2028
YM Maturity
6,500
2010
April 2028
Performance
6,402
2002
May 2024
Dimitra C
6,402
2002
January 2023
Seattle C
4,253
2007
September 2021
Vancouver
4,253
2007
December 2021
Derby D
4,253
2004
January 2022
ANL Tongala
4,253
2004
January 2023
Rio Grande
4,253
2008
December 2021
ZIM Sao Paolo
4,253
2008
February 2023
ZIM Kingston
4,253
2008
April 2023
ZIM Monaco
4,253
2009
July 2022
ZIM Dalian
4,253
2009
November 2022
ZIM Luanda
4,253
2009
August 2025
Dimitris C
3,430
2001
January 2022
Express Black Sea
3,400
2011
January 2022
Express Spain
3,400
2011
January 2022
Express Argentina
3,400
2010
May 2023
Express Brazil
3,400
2010
September 2021
Express France
3,400
2010
October 2021
Singapore
3,314
2004
October 2021
Colombo
3,314
2004
December 2021
Zebra
2,602
2001
August 2021
Amalia C
2,452
1998
January 2023
Artotina (ex Danae C)
2,524
2001
February 2022
Advance
2,200
1997
January 2022
Future
2,200
1997
November 2021
Sprinter
2,200
1997
December 2021
Stride
2,200
1997
February 2022
Progress C
2,200
1998
December 2021
Bridge
2,200
1998
April 2022
Highway
2,200
1998
August 2022
Vladivostok
2,200
1997
October 2021
Belita ľ2)
8,533
2006
September 2021
Catherine C (2)
6,422
2001
January 2023
Leo C (2)
6,422
2002
August 2022
Suez Canal(2)
5,610
2002
March 2023
Genoaľ2)
5,544
2002
November
2024
__________________________
(1)
Earliest date charters could expire. Some
charters include options to extend their terms.
(2)
Vessels acquired by Gemini Shipholdings
Corporation, in which Danaos holds a 49% equity interest.
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,
2021
2020
OPERATING REVENUES
$132,118
$106,196
OPERATING EXPENSES
Vessel operating expenses
(31,078)
(26,002)
Depreciation & amortization
(28,308)
(26,891)
General & administrative
(10,895)
(5,840)
Other operating expenses
(4,228)
(4,046)
Income From Operations
57,609
43,417
OTHER INCOME/(EXPENSES)
Interest income
1,978
1,714
Interest expense
(15,111)
(16,313)
Change in fair value of investments
247,875
-
Other finance expenses
(452)
(622)
Equity income on investments
1,803
1,545
Other income, net
3,971
251
Realized loss on derivatives
(893)
(903)
Total Other Income/(Expenses),
net
239,171
(14,328)
Net Income
$296,780
$29,089
EARNINGS PER SHARE
Basic earnings per share
$14.62
$1.18
Diluted earnings per share
$14.47
$1.17
Basic weighted average number of common
shares (in thousands of shares)
20,293
24,573
Diluted weighted average number of common
shares (in thousands of shares)
20,513
24,789
Non-GAAP Measures1
Reconciliation of Net Income
to Adjusted Net Income – Unaudited
Three months ended
Three months ended
March 31,
March 31,
2021
2020
Net income
$296,780
$29,089
Change in fair value of investments
(247,875)
-
Amortization of financing fees, debt
discount & finance fees accrued
5,028
4,192
Stock-based compensation
4,078
-
Adjusted Net Income
$58,011
$33,281
Adjusted Earnings Per Share,
diluted
$2.83
$1.34
Diluted weighted average number of shares
(in thousands)
20,513
24,789
1
The Company reports its financial results
in accordance with U.S. generally accepted accounting principles
(GAAP). However, management believes that certain non-GAAP
financial measures used in managing the business may provide users
of this financial information additional meaningful comparisons
between current results and results in prior operating periods.
Management believes that these non-GAAP financial measures can
provide additional meaningful reflection of underlying trends of
the business because they provide a comparison of historical
information that excludes certain items that impact the overall
comparability. Management also uses these non-GAAP financial
measures in making financial, operating and planning decisions and
in evaluating the Company's performance. See the Table above for
supplemental financial data and corresponding reconciliations to
GAAP financial measures for the three months ended March 31, 2021
and 2020. Non-GAAP financial measures should be viewed in addition
to, and not as an alternative for, the Company’s reported results
prepared in accordance with GAAP.
DANAOS CORPORATION
Condensed Consolidated Balance
Sheets - Unaudited
(Expressed in thousands of
United States dollars)
As of
As of
March 31,
December 31,
2021
2020
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$68,104
$65,663
Accounts receivable, net
7,343
7,556
Other current assets
121,349
45,229
196,796
118,448
NON-CURRENT ASSETS
Fixed assets, net
2,455,171
2,479,937
Deferred charges, net
15,737
17,339
Restricted cash
294,404
-
Investments in affiliates
17,076
15,273
Other non-current assets
275,378
83,383
3,057,766
2,595,932
TOTAL ASSETS
$3,254,562
$2,714,380
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Long-term debt, current portion
$111,130
$155,662
Accumulated accrued interest, current
portion
7,169
18,036
Long-term leaseback obligations, current
portion
24,862
24,515
Accounts payable, accrued liabilities
& other current liabilities
47,459
41,472
190,620
239,685
LONG-TERM LIABILITIES
Long-term debt, net
1,458,947
1,187,345
Accumulated accrued interest, net of
current portion
140,037
136,433
Long-term leaseback obligations, net
89,673
95,585
Other long-term liabilities
17,539
19,755
1,706,196
1,439,118
STOCKHOLDERS’ EQUITY
Common stock
206
204
Additional paid-in capital
760,297
755,390
Accumulated other comprehensive loss
(66,189)
(86,669)
Retained earnings
663,432
366,652
1,357,746
1,035,577
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$3,254,562
$2,714,380
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,
2021
2020
Operating Activities:
Net income
$296,780
$29,089
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
25,799
24,581
Amortization of deferred drydocking &
special survey costs, finance cost, debt discount and other finance
fees accrued
7,537
6,502
PIK interest
642
807
Change in fair value of investments
(247,875)
-
Payments for drydocking/special survey
(907)
(4,850)
Amortization of deferred realized losses
on cash flow interest rate swaps
893
903
Equity (income)/loss on investments
(1,803)
(1,545)
Stock based compensation
4,909
298
Accounts receivable
213
(776)
Other assets, current and non-current
1,002
(1,889)
Accounts payable and accrued
liabilities
3,278
5,343
Other liabilities, current and
long-term
(2,210)
(3,036)
Net Cash provided by Operating
Activities
88,258
55,427
Investing Activities:
Vessel additions and advances
(1,236)
(42,246)
Investments
2,392
(75)
Net Cash provided by/(used in)
Investing Activities
1,156
(42,321)
Financing Activities:
Proceeds from long-term debt
294,386
-
Debt repayment
(71,849)
(32,637)
Payments of leaseback obligations
(5,916)
(3,876)
Payments of accumulated accrued
interest
(4,702)
(8,329)
Finance costs
(4,488)
(10,415)
Net Cash provided by/(used in)
Financing Activities
207,431
(55,257)
Net Increase/(Decrease) in cash, cash
equivalents and restricted cash
296,845
(42,151)
Cash, cash equivalents and restricted
cash, beginning of period
65,663
139,170
Cash, cash equivalents and restricted
cash, end of period
$362,508
$97,019
DANAOS CORPORATION
Reconciliation of Net Income
to Adjusted EBITDA - Unaudited
(Expressed in thousands of
United States dollars)
Three months ended
Three months ended
March 31,
March 31,
2021
2020
Net income
$296,780
$29,089
Depreciation
25,799
24,581
Amortization of deferred drydocking &
special survey costs
2,509
2,310
Amortization of deferred finance costs,
debt discount and other finance fees accrued
5,028
4,192
Amortization of deferred realized losses
on interest rate swaps
893
903
Interest income
(1,978)
(1,714)
Interest expense
10,217
12,259
Change in fair value of investments
(247,875)
-
Stock based compensation
4,909
298
Adjusted EBITDA(1)
$96,282
$71,918
1)
Adjusted EBITDA represents net income before interest income
and expense, depreciation, amortization of deferred drydocking
& special survey costs, amortization of deferred finance costs,
debt discount and other finance fees accrued, amortization of
deferred realized losses on interest rate swaps, change in fair
value of investments and stock based compensation. However,
Adjusted EBITDA is not a recognized measurement under U.S.
generally accepted accounting principles, or “GAAP.” We believe
that the presentation of Adjusted EBITDA is useful to investors
because it is frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in our
industry. We also believe that Adjusted EBITDA is useful in
evaluating our operating performance compared to that of other
companies in our industry because the calculation of Adjusted
EBITDA generally eliminates the effects of financings, income taxes
and the accounting effects of capital expenditures and
acquisitions, items which may vary for different companies for
reasons unrelated to overall operating performance. In evaluating
Adjusted EBITDA, you should be aware that in the future we may
incur expenses that are the same as or similar to some of the
adjustments in this presentation. Our presentation of Adjusted
EBITDA should not be construed as an inference that our future
results will be unaffected by unusual or non-recurring items.
Note: Items to consider for comparability
include gains and charges. Gains positively impacting net income
are reflected as deductions to net income. Charges negatively
impacting net income are reflected as increases to net income.
The Company reports its financial results
in accordance with U.S. generally accepted accounting principles
(GAAP). However, management believes that certain non-GAAP
financial measures used in managing the business may provide users
of these financial information additional meaningful comparisons
between current results and results in prior operating periods.
Management believes that these non-GAAP financial measures can
provide additional meaningful reflection of underlying trends of
the business because they provide a comparison of historical
information that excludes certain items that impact the overall
comparability. Management also uses these non-GAAP financial
measures in making financial, operating and planning decisions and
in evaluating the Company's performance. See the Tables above for
supplemental financial data and corresponding reconciliations to
GAAP financial measures for the three months ended March 31, 2021
and 2020. Non-GAAP financial measures should be viewed in addition
to, and not as an alternative for, the Company’s reported results
prepared in accordance with GAAP.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210510005973/en/
Evangelos Chatzis Chief Financial Officer Danaos
Corporation Athens, Greece +30 210 419 6480
cfo@danaos.com
Iraklis Prokopakis Senior Vice President and Chief
Operating Officer Danaos Corporation Athens, Greece +30 210 419
6400 coo@danaos.com
Investor Relations and Financial Media Rose & Company
New York 212-359-2228 danaos@rosecoglobal.com
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