ATHENS, Greece, June 26, 2018 /PRNewswire/ -- 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,
2018.
Highlights for the First Quarter Ended March 31, 2018:
- On June 19, 2018, we reached
an agreement with certain of our lenders currently holding
approximately $2.2 billion of debt
maturing on December 31, 2018, that
will significantly strengthen the Company's financial position
through a debt reduction of approximately $551 million, the resetting of financial and
other covenants, modified interest rates and amortization profiles
and an extension of existing debt maturities by approximately five
years to December 31, 2023. In
connection with this refinancing, the consummation of which is
subject to definitive documentation and certain closing conditions,
we will issue approximately 99.3 million shares of common stock to
certain of our lenders. See "Debt Refinancing".
- Adjusted net income1 of $27.9 million, or $0.25 per share, for the three months ended
March 31, 2018 compared to
$24.5 million, or $0.22 per share, for the three months ended
March 31, 2017, an increase of
13.9%.
- Operating revenues of $111.9
million for the three months ended March 31, 2018 compared to $110.1 million for the three months ended
March 31, 2017, an increase of
1.6%.
- Adjusted EBITDA1 of $76.6 million for the three months ended
March 31, 2018 compared to
$72.5 million for the three months
ended March 31, 2017, an increase of
5.7%.
- Total contracted operating revenues were $1.7 billion as of March
31, 2018, with charters extending through 2028 and remaining
average contracted charter duration of 5.4 years, weighted by
aggregate contracted charter hire.
- Charter coverage of 90% for the next 12 months based on
current operating revenues and 81% in terms of contracted operating
days.
Three Months Ended
March 31, 2018
|
Financial Summary
- Unaudited
|
(Expressed
in thousands of United States dollars, except per share
amounts)
|
|
|
Three months
ended
|
|
Three months
ended
|
March
31,
|
March
31,
|
|
2018
|
|
2017
|
|
|
|
|
Operating
revenues
|
$111,854
|
|
$110,087
|
Net income
|
$14,992
|
|
$18,443
|
Adjusted net
income1
|
$27,951
|
|
$24,522
|
Earnings per
share
|
$0.14
|
|
$0.17
|
Adjusted earnings per
share1
|
$0.25
|
|
$0.22
|
Weighted average
number of shares (in thousands)
|
109,799
|
|
109,825
|
Adjusted
EBITDA1
|
$76,638
|
|
$72,546
|
|
|
1Adjusted
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:
"We are extremely pleased to have reached an agreement with
certain of our lenders currently holding $2.2 billion of debt maturing on December 31, 2018 that will significantly
strengthen the Company's capital structure through a debt reduction
of $551 million.
This comprehensive debt refinancing will also strengthen the
Company's financial position through a resetting of financial
and certain other covenants in credit facilities, a modification of
interest rates and amortization profiles and an extension of
existing debt maturities by approximately five years to
December 31, 2023. In
connection with these debt write downs, we will issue just under
100 million shares of common stock to certain of our
lenders.
This is the culmination of a lengthy negotiation process we have
undertaken with our lenders that will position Danaos for long-term
success. I would like to thank all of our lenders for their
support, as well as our financial and legal advisors for their
assistance. The Danaos management team looks forward to the
completion of this transaction which is expected to occur by
July 31, 2018.
In the near term, we maintain high charter contract coverage of
90% for the next 12 months based on current operating revenues and
81% in terms of contracted operating days. The charter market has
stabilized at current levels although trade tensions tend to make
liner companies hesitant to commit for longer periods. The benefit,
conversely, may be a reduction of speculative ordering or ordering
by liner companies, a condition that would improve market
conditions.
Danaos continues to be a leader in the container shipping
industry as a result of our intense focus on continuously enhancing
our operations and leveraging technical innovation to provide the
highest quality service to our customers. Our industry has
undergone significant changes during the past few years, and with
the improved capital structure contemplated by our comprehensive
re-financing agreement, we will be well positioned to take
advantage of the growth opportunities in the container sector and
create value for our shareholders."
Three months ended March 31,
2018 compared to the three months ended March 31, 2017
During the three months ended March 31,
2018 and March 31, 2017,
Danaos had an average of 55 containerships. Our fleet utilization
for the three months ended March 31,
2018 was 95.6% compared to 92.7% for the three months ended
March 31, 2017. The fleet utilization
excluding the off charter days of the vessels that were previously
chartered to Hanjin Shipping ("Hanjin") was 98.1% in the three
months ended March 31, 2017.
Our adjusted net income amounted to $27.9
million, or $0.25 per share,
for the three months ended March 31,
2018 compared to $24.5
million, or $0.22 per share,
for the three months ended March 31,
2017. We have adjusted our net income in the three months
ended March 31, 2018 for refinancing
related professional fees of $9.6
million and a non-cash amortization charge of $3.4 million for fees related to our 2011
comprehensive financing plan (comprised of non-cash, amortizing and
accrued finance fees). Please refer to the Adjusted Net Income
reconciliation table, which appears later in this earnings
release.
The increase of $3.4 million in
adjusted net income for the three months ended March 31, 2018 compared to the three months ended
March 31, 2017 is attributable mainly
to a $3.9 million decrease in total
operating expenses and $1.8 million
increase in operating revenues, which were partially offset by a
$2.3 million increase in net finance
expenses.
On a non-adjusted basis, our net income amounted to $15.0 million, or $0.14 per share, for the three months ended
March 31, 2018 compared to net income
of $18.4 million, or $0.17 per share, for the three months ended
March 31, 2017.
Operating Revenues
Operating revenues increased by
1.6%, or $1.8 million, to
$111.9 million in the three months
ended March 31, 2018 from
$110.1 million in the three months
ended March 31, 2017.
Operating revenues for the three months ended March 31, 2018 reflect:
- $3.2 million increase in revenues
in the three months ended March 31,
2018 compared to the three months ended March 31, 2017 due to the re-chartering of
certain of our vessels at higher rates.
- $1.4 million decrease in revenues
due to lower fleet utilization for vessels in our fleet, other than
the three vessels previously chartered to Hanjin which did not earn
any revenues in the three months ended March
31, 2017, compared to the three months ended March 31, 2018.
Vessel Operating Expenses
Vessel operating expenses
decreased by 2.5%, or $0.7 million,
to $26.8 million in the three
months ended March 31, 2018 from
$27.5 million in the three
months ended March 31, 2017. The
average daily operating cost per vessel for vessels on time charter
was $5,849 per day for the three
months ended March 31, 2018 compared
to $5,756 per day for the three
months ended March 31, 2017.
Management believes that our daily operating cost ranks as one of
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 decreased by 6.2%,
or $1.8 million, to $27.1 million in the three months ended
March 31, 2018 from $28.9 million in the three months ended
March 31, 2017.
Amortization of Deferred Dry-docking and Special Survey
Costs
Amortization of deferred dry-docking and special
survey costs increased by $0.1
million, to $1.8 million in
the three months ended March 31, 2018
from $1.7 million in the three months
ended March 31, 2017.
General and Administrative Expenses
General and
administrative expenses decreased by $0.9
million, to $5.2 million in
the three months ended March 31,
2018, from $6.1 million in the
three months ended March 31, 2017.
The decrease was due to decreased professional fees.
Other Operating Expenses
Other Operating Expenses
include Voyage Expenses.
Voyage Expenses
Voyage expenses decreased by
$0.6 million, to $3.2 million in the three months ended
March 31, 2018 from $3.8 million in the three months ended
March 31, 2017. The decrease is
mainly due to decreased bunkering expenses.
Interest Expense and Interest Income
Interest expense
increased by 9.1%, or $1.9 million,
to $22.8 million in the three
months ended March 31, 2018 from
$20.9 million in the three months
ended March 31, 2017. The increase in
interest expense was mainly due to the increase in average cost of
debt due to the increase in US$ Libor by about 60 bps between the
two periods, which was partially offset by a decrease in our
average debt by $182.5 million, to
$2,301.4 million in the three months
ended March 31, 2018, from
$2,483.9 million in the three months
ended March 31, 2017 and a
$0.4 million decrease in the
amortization of deferred finance costs.
As of March 31, 2018, our debt
outstanding gross of deferred finance costs was $2,299.9 million compared to $2,474.1 million as of March 31, 2017.
Interest income decreased by $0.1
million to $1.4 million in the
three months ended March 31, 2018
compared to $1.5 million in the three
months ended March 31, 2017.
Other finance costs, net
Other finance costs, net
remained stable at $1.0 million in
the three months ended March 31, 2018
and 2017.
Equity income/(loss) on investments
Equity
income/(loss) on investments decreased by $0.2 million in the three months ended
March 31, 2018 from equity income on
investments of $0.2 million in the
three months ended March 31, 2017 and
relates to the 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 the three months ended
March 31, 2018 and 2017.
Other income/(expenses), net
Other income/(expenses),
net was $9.4 million in expenses in
the three months ended March 31, 2018
mainly due to $9.6 million of
refinancing-related professional fees compared to $2.4 million in expenses in the three months
ended March 31, 2017 due to a
$2.4 million realized loss on sale of
HMM securities.
Adjusted EBITDA
Adjusted EBITDA increased by 5.7%, or
$4.1 million, to $76.6 million in the three months ended
March 31, 2018 from $72.5 million in the three months ended
March 31, 2017. As outlined above,
this increase is mainly attributable to a $2.2 million decrease in operating expenses and a
$1.8 million increase in operating
revenues. Adjusted EBITDA for the three months ended March 31, 2018 is adjusted for
refinancing-related professional fees of $9.6 million. Tables reconciling Adjusted EBITDA
to Net Income can be found at the end of this earnings release.
Debt Refinancing
On June 19,
2018, we reached an agreement with certain of our lenders
currently holding approximately $2.2
billion of debt maturing on December
31, 2018 that will significantly strengthen the Company's
capital structure and result in a debt reduction of approximately
$551 million. Pursuant to a
comprehensive debt refinancing agreement ("RA") with certain of its
lenders, as well as Danaos Investment Limited as Trustee of the 883
Trust ("DIL"), its largest stockholder, and its manager, Danaos
Shipping Co. Ltd., the Company will strengthen its financial
position through a significant debt reduction, resetting of
financial and certain other covenants in credit facilities,
modified interest rates and amortization profiles and an extension
of existing debt maturities by approximately five years to
December 31, 2023. In connection with
this debt refinancing, the Company will issue 99,342,271 new shares
of Danaos common stock to certain of the Company's lenders, which
represents 47.5% of the Company's outstanding common stock after
giving effect to such issuance and will dilute existing
shareholders ratably. The closing of the transaction is expected to
occur by July 31, 2018, and is
subject to definitive documentation and certain closing conditions
and commitments by the Company and DIL. For additional information
regarding the debt refinancing agreement, see the Company's Report
on Form 6-K filed with the SEC on June 25,
2018.
Conference Call and Webcast
On Wednesday, June 27, 2018 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 July 4, 2018 by dialing 1 877
344 7529 (US Toll Free Dial In) or +1 412 317 0088 (Standard
International Dial In) and using 10117035# as the access code.
Audio Webcast
There will also be a live and then
archived webcast of the conference call through 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.
About Danaos Corporation
Danaos Corporation is one of
the largest independent owners of modern, large-size
containerships. Our current fleet of 59 containerships aggregating
351,614 TEUs, including four 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, including statements about the RA and transactions
contemplated thereby, the expected timing of completion of the
transactions contemplated by the RA, the expected benefits of the
transactions contemplated by the RA, growth opportunities in the
container sector and other statements that are forward looking.
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 effects of proposed
refinancing transactions contemplated by the RA; the risk that
conditions to completion of the transactions contemplated by the RA
may not be met; the risk that we may not complete the refinancing
transactions within the expected timing; Danaos' ability to achieve
long-term success and remain an industry leader following the
refinancing transactions; the actions that Danaos may take in the
event the RA is terminated; the occurrence of any event, change, or
other circumstance that could give rise to the termination of the
RA; the effects of actions taken by NYSE against the Company during
the pendency of the refinancing; 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 91 unscheduled off-hire days in the three months
ended March 31, 2018. 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
|
2018
|
2017
|
Ownership
Days
|
4,950
|
|
4,950
|
Less Off-hire
Days:
|
|
|
|
Scheduled Off-hire
Days
|
(125)
|
|
(15)
|
Other Off-hire
Days
|
(91)
|
|
(347)
|
Operating
Days
|
4,734
|
|
4,588
|
Vessel
Utilization
|
95.6%
|
|
92.7%
|
|
|
|
|
Operating Revenues
(in '000s of US Dollars)
|
$111,854
|
|
$110,087
|
Average Gross
Daily Charter Rate
|
$23,628
|
|
$23,995
|
Fleet List
The following table describes in detail our
fleet deployment profile as of June 26,
2018:
Vessel
Name
|
Vessel
Size
(TEU)
|
|
Year
Built
|
|
Expiration of
Charter(1)
|
Containerships
|
|
|
|
|
|
|
|
|
|
|
|
MSC
Ambition
|
13,100
|
|
2012
|
|
June 2024
|
Maersk
Exeter
|
13,100
|
|
2012
|
|
June 2024
|
Maersk
Enping
|
13,100
|
|
2012
|
|
May 2024
|
Hyundai
Respect
|
13,100
|
|
2012
|
|
March 2024
|
Hyundai
Honour
|
13,100
|
|
2012
|
|
February
2024
|
Express
Rome
|
10,100
|
|
2011
|
|
January
2019
|
Express
Berlin
|
10,100
|
|
2011
|
|
September
2019
|
Express
Athens
|
10,100
|
|
2011
|
|
January
2019
|
CSCL Le
Havre
|
9,580
|
|
2006
|
|
September
2018
|
CSCL
Pusan
|
9,580
|
|
2006
|
|
July 2018
|
CMA CGM
Melisande
|
8,530
|
|
2012
|
|
November 2023
|
CMA CGM
Attila
|
8,530
|
|
2011
|
|
April 2023
|
CMA CGM
Tancredi
|
8,530
|
|
2011
|
|
May 2023
|
CMA CGM
Bianca
|
8,530
|
|
2011
|
|
July 2023
|
CMA CGM
Samson
|
8,530
|
|
2011
|
|
September
2023
|
CSCL
America
|
8,468
|
|
2004
|
|
June 2019
|
Europe
|
8,468
|
|
2004
|
|
January
2019
|
CMA CGM
Moliere
|
6,500
|
|
2009
|
|
August
2021
|
CMA CGM
Musset
|
6,500
|
|
2010
|
|
February
2022
|
CMA CGM
Nerval
|
6,500
|
|
2010
|
|
April 2022
|
CMA CGM
Rabelais
|
6,500
|
|
2010
|
|
June 2022
|
CMA CGM
Racine
|
6,500
|
|
2010
|
|
July 2022
|
YM
Mandate
|
6,500
|
|
2010
|
|
January
2028
|
YM
Maturity
|
6,500
|
|
2010
|
|
April 2028
|
Performance
|
6,402
|
|
2002
|
|
May 2019
|
Priority
|
6,402
|
|
2002
|
|
August
2018
|
YM
Seattle
|
4,253
|
|
2007
|
|
July 2019
|
YM
Vancouver
|
4,253
|
|
2007
|
|
September
2019
|
Derby
D
|
4,253
|
|
2004
|
|
March 2019
|
ANL Tongala (ex
Deva)
|
4,253
|
|
2004
|
|
March 2019
|
ZIM Rio
Grande
|
4,253
|
|
2008
|
|
May 2020
|
ZIM Sao
Paolo
|
4,253
|
|
2008
|
|
August
2020
|
ZIM
Kingston
|
4,253
|
|
2008
|
|
September
2020
|
ZIM
Monaco
|
4,253
|
|
2009
|
|
November
2020
|
ZIM
Dalian
|
4,253
|
|
2009
|
|
February 2021
|
ZIM
Luanda
|
4,253
|
|
2009
|
|
May 2021
|
Dimitris
C
|
3,430
|
|
2001
|
|
June 2019
|
Express Black
Sea
|
3,400
|
|
2011
|
|
November
2018
|
Express
Spain
|
3,400
|
|
2011
|
|
November
2018
|
Express
Argentina
|
3,400
|
|
2010
|
|
May 2019
|
Express
Brazil
|
3,400
|
|
2010
|
|
September
2018
|
Express
France
|
3,400
|
|
2010
|
|
October
2018
|
Singapore
|
3,314
|
|
2004
|
|
October
2019
|
Colombo
|
3,314
|
|
2004
|
|
March 2019
|
MSC
Zebra
|
2,602
|
|
2001
|
|
October
2018
|
Amalia
C
|
2,452
|
|
1998
|
|
August
2019
|
Danae
C
|
2,524
|
|
2001
|
|
January
2020
|
Advance
|
2,200
|
|
1997
|
|
December
2018
|
Future
|
2,200
|
|
1997
|
|
July 2018
|
Sprinter
|
2,200
|
|
1997
|
|
October
2018
|
Stride
|
2,200
|
|
1997
|
|
July 2018
|
Progress C (ex
Hyundai Progress)
|
2,200
|
|
1998
|
|
October
2018
|
Bridge
|
2,200
|
|
1998
|
|
July 2018
|
Highway
|
2,200
|
|
1998
|
|
November
2018
|
Vladivostok
|
2,200
|
|
1997
|
|
July 2018
|
|
|
|
|
|
|
Lodestar (ex NYK
Lodestar)(2)
|
6,422
|
|
2001
|
|
July 2018
|
NYK
Leo(2)
|
6,422
|
|
2002
|
|
February
2019
|
Suez
Canal(2)
|
5,610
|
|
2002
|
|
November
2018
|
Genoaľ2)
|
5,544
|
|
2002
|
|
July 2018
|
|
|
|
|
|
|
|
|
(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,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
OPERATING
REVENUES
|
$111,854
|
|
$110,087
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
Vessel operating
expenses
|
(26,849)
|
|
(27,455)
|
|
Depreciation &
amortization
|
(28,903)
|
|
(30,592)
|
|
General &
administrative
|
(5,182)
|
|
(6,129)
|
|
Other operating
expenses
|
(3,161)
|
|
(3,839)
|
Income From
Operations
|
47,759
|
|
42,072
|
|
|
|
|
|
OTHER
INCOME/(EXPENSES)
|
|
|
|
|
Interest
income
|
1,375
|
|
1,471
|
|
Interest
expense
|
(22,849)
|
|
(20,900)
|
|
Other finance
expenses
|
(971)
|
|
(1,047)
|
|
Equity income on
investments
|
(26)
|
|
206
|
|
Other
income/(expenses), net
|
(9,385)
|
|
(2,448)
|
|
Realized loss on
derivatives
|
(911)
|
|
(911)
|
Total Other
Expenses, net
|
(32,767)
|
|
(23,629)
|
|
|
|
|
|
Net
Income
|
$14,992
|
|
$18,443
|
|
|
|
|
|
EARNINGS PER
SHARE
|
|
|
|
Basic & diluted
earnings per share
|
$0.14
|
|
$0.17
|
Basic & diluted
weighted average number of common shares
(in thousands of shares)
|
109,799
|
|
109,825
|
Non-GAAP
Measures*
|
Reconciliation of
Net Income to Adjusted Net Income – Unaudited
|
|
|
Three months
ended
|
|
Three months
ended
|
March
31,
|
March
31,
|
|
2018
|
|
2017
|
Net income
|
$14,992
|
|
$18,443
|
Amortization of
financing fees & finance fees accrued
|
3,351
|
|
3,722
|
Refinancing
professional fees
|
9,608
|
|
-
|
Loss on sale of
securities
|
-
|
|
2,357
|
Adjusted Net
Income
|
$27,951
|
|
$24,522
|
Adjusted Earnings
Per Share
|
$0.25
|
|
$0.22
|
Weighted average
number of shares (in thousands)
|
109,799
|
|
109,825
|
|
* 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, 2018 and 2017. 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,
|
|
|
|
2018
|
|
2017
|
ASSETS
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$62,979
|
|
$66,895
|
|
Restricted
cash
|
|
-
|
|
2,812
|
|
Accounts receivable,
net
|
|
6,741
|
|
6,502
|
|
Other current
assets
|
|
53,086
|
|
49,790
|
|
|
|
122,806
|
|
125,999
|
NON-CURRENT
ASSETS
|
|
|
|
|
|
Fixed assets,
net
|
|
2,769,627
|
|
2,795,971
|
|
Deferred charges,
net
|
|
13,512
|
|
8,962
|
|
Investments in
affiliates
|
|
5,972
|
|
5,998
|
|
Other non-current
assets
|
|
54,334
|
|
49,466
|
|
|
|
2,843,445
|
|
2,860,397
|
TOTAL
ASSETS
|
|
$2,966,251
|
|
$2,986,396
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
Long-term debt,
current portion
|
|
$2,291,351
|
|
$2,329,601
|
|
Accounts payable,
accrued liabilities & other current liabilities
|
|
54,740
|
|
50,238
|
|
|
|
2,346,091
|
|
2,379,839
|
LONG-TERM
LIABILITIES
|
|
|
|
|
|
Other long-term
liabilities
|
|
54,100
|
|
57,852
|
|
|
|
54,100
|
|
57,852
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Common
stock
|
|
1,098
|
|
1,098
|
|
Additional paid-in
capital
|
|
546,898
|
|
546,898
|
|
Accumulated other
comprehensive loss
|
|
(111,713)
|
|
(114,076)
|
|
Retained
earnings
|
|
129,777
|
|
114,785
|
|
|
|
566,060
|
|
548,705
|
Total liabilities
and stockholders' equity
|
|
$2,966,251
|
|
$2,986,396
|
DANAOS
CORPORATION
|
Condensed
Consolidted Statements of Cash Flows
- Unaudited
|
(Expressed in
thousands of United States dollars)
|
|
|
|
Three months
ended
|
|
Three months
ended
|
March
31,
|
March
31,
|
|
|
2018
|
|
2017
|
Operating
Activities:
|
|
|
|
|
Net income
|
$14,992
|
|
$18,443
|
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation
|
27,060
|
|
28,851
|
|
Amortization of
deferred drydocking & special survey costs,
finance cost and other finance fees accrued
|
5,194
|
|
5,463
|
|
Payments for
drydocking/special survey
|
(6,393)
|
|
(4,094)
|
|
Amortization of
deferred realized losses on cash flow interest rate
swaps
|
911
|
|
911
|
|
Equity income on
investments
|
26
|
|
(206)
|
|
Loss on sale of
securities
|
-
|
|
2,357
|
|
Accounts
receivable
|
(239)
|
|
(1,330)
|
|
Other assets, current
and non-current
|
(6,712)
|
|
210
|
|
Accounts payable and
accrued liabilities
|
6,636
|
|
2,042
|
|
Other liabilities,
current and long-term
|
(5,886)
|
|
(8,314)
|
Net Cash provided
by Operating Activities
|
35,589
|
|
44,333
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
Vessel
additions
|
(716)
|
|
(1,527)
|
Net Cash used in
Investing Activities
|
(716)
|
|
(1,527)
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
Debt repayment
|
(41,601)
|
|
(53,958)
|
Net Cash used in
Financing Activities
|
(41,601)
|
|
(53,958)
|
Net Decrease in cash,
cash equivalents and restricted cash
|
(6,728)
|
|
(11,152)
|
Cash, cash
equivalents and restricted cash, beginning of period
|
69,707
|
|
76,529
|
Cash, cash
equivalents and restricted cash, end of period
|
$62,979
|
|
$65,377
|
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,
|
|
2018
|
|
2017
|
Net income
|
$14,992
|
|
$18,443
|
Depreciation
|
27,060
|
|
28,851
|
Amortization of
deferred drydocking & special survey
costs
|
1,843
|
|
1,741
|
Amortization of
deferred finance costs and other
finance fees accrued
|
3,351
|
|
3,722
|
Amortization of
deferred realized losses on interest rate
swaps
|
911
|
|
911
|
Interest
income
|
(1,375)
|
|
(1,471)
|
Interest
expense
|
20,248
|
|
17,992
|
Refinancing
professional fees
|
9,608
|
|
-
|
Loss on sale of
securities
|
-
|
|
2,357
|
Adjusted
EBITDA(1)
|
$76,638
|
|
$72,546
|
1)
|
Adjusted EBITDA
represents net income before interest income and expense,
depreciation, amortization of deferred drydocking & special
survey costs and deferred finance costs, amortization of deferred
realized losses on interest rate swaps, loss on sale of securities
and refinancing professional fees. 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, 2018 and 2017. 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.
|
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SOURCE Danaos Corporation