ATHENS, Greece, May 13, 2019 /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,
2019.
Highlights for the First Quarter Ended March 31, 2019:
- Adjusted net income1 of $38.6 million, or $2.53 per share2, for the three months
ended March 31, 2019 compared to
$28.0 million, or $3.56 per share2, for the three months
ended March 31, 2018, an increase of
37.9%.
- Operating revenues of $112.9
million for the three months ended March 31, 2019 compared to $111.9 million for the three months ended
March 31, 2018, an increase of
0.9%.
- Adjusted EBITDA1 of $77.5 million for the three months ended
March 31, 2019 compared to
$76.6 million for the three months
ended March 31, 2018, an increase of
1.2%.
- Total contracted operating revenues were $1.5 billion as of March
31, 2019, with charters extending through 2028 and remaining
average contracted charter duration of 4.7 years, weighted by
aggregate contracted charter hire.
- Charter coverage of 86% for the next 12 months based on
current operating revenues and 71% in terms of contracted operating
days.
- Effected 1:14 reverse stock split on May 2, 2019, which the Company believes will cure
the previously announced NYSE deficiency caused by our stock
trading below $1.
- Concluded sale and leaseback transactions for two 13,100 TEU
containerships on April 12, 2019,
resulting in net proceeds of $144.8
million, which were used to repay credit facilities secured
by mortgages on the vessels.
|
Three Months Ended
March 31, 2019
|
|
Financial Summary
- Unaudited
|
|
(Expressed
in thousands of United States dollars, except per share
amounts)
|
|
|
|
|
|
Three
months
ended
|
|
Three
months
ended
|
|
March
31,
|
March
31,
|
|
2019
|
|
2018
|
|
|
|
|
|
Operating
revenues
|
$112,891
|
|
$111,854
|
|
Net income
|
$33,443
|
|
$14,992
|
|
Adjusted net
income1
|
$38,569
|
|
$27,951
|
|
Earnings per share,
diluted2
|
$2.19
|
|
$1.91
|
|
Adjusted earnings per
share, diluted1,2
|
$2.53
|
|
$3.56
|
|
Diluted weighted
average number of shares (in thousands)2
|
15,237
|
|
7,843
|
|
Adjusted
EBITDA1
|
$77,538
|
|
$76,638
|
|
|
|
|
|
|
|
|
|
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.
|
|
2
|
Earnings per share
and weighted average number of shares give retroactive effect to
the reverse stock split of 1-for-14 implemented on May 2, 2019, for
both periods presented.
|
Danaos' CEO Dr. John Coustas
commented:
"Danaos Corporation's adjusted net income of $38.6 million, or $2.53 per share, for the first quarter of 2019
increased by $10.6 million, or 37.9%,
when compared to the first quarter of 2018. This improvement was
primarily the result of a $7.6
million decrease in net finance expenses and a $2 million decrease in total operating costs,
combined with a $1 million increase
in operating revenues due to improved fleet utilization. Adjusted
EBITDA for the first quarter of 2019 was $77.5 million, $0.9
million higher than the first quarter of 2018.
"Effective May 2, 2019, following
approval of our shareholders and our Board, we effected a 1:14
reverse stock split, which we believe will cure the previously
announced NYSE deficiency caused by our stock trading below
$1.
"At the beginning of April we concluded a $150 million sale and leaseback transaction for
two 13,100 TEU vessels, fulfilling a requirement from the
re-financing we concluded last August. The net proceeds of the
transaction were used to prepay certain credit facilities that had
financed the vessels. Under the terms of the transaction, the
Company will re-acquire the vessels at the end of their five-year
lease periods.
"The charter market for vessels over 5,500 TEU has seen
significant improvement when compared to the recent lows of the
fourth quarter of 2018. In general, the charter market for larger
vessels has improved considerably, which is notable as more than
70% of our fleet in terms of capacity, is comprised of such
vessels. Vessels below 5,500 TEU have also improved slightly since
last November's downturn.
"On the investment side, we have recently concluded our first
scrubber installation on a vessel owned by Gemini Shipholdings
Corporation, an entity in which Danaos has a 49% shareholding
interest, and will proceed with installing scrubbers on a further
nine vessels wholly-owned by Danaos and one additional vessel owned
by Gemini over the next few months.
"Our total contracted revenues as of March 31, 2019 were $1.5
billion, and we maintain our high charter contract coverage
of 86% in terms of operating revenues and 71% in terms of operating
days over the next 12 months. This insulates us from near-term
market weakness.
"Danaos continues to be a leader in the container shipping
industry on the back of a solid track record of operational
excellence and technological innovation that allows us to
continually deliver high quality service to our customers. At the
same time, the recently concluded refinancing transaction further
enhances our ability to pursue growth opportunities and our goal of
delivering value to our shareholders."
Three months ended March 31,
2019 compared to the three months ended March 31, 2018
During the three months ended March 31,
2019 and March 31, 2018,
Danaos had an average of 55 containerships. Our fleet utilization
for the three months ended March 31,
2019 was 98.2% compared to 95.6% for the three months ended
March 31, 2018.
Our adjusted net income amounted to $38.6
million, or $2.53 per share,
for the three months ended March 31,
2019 compared to $28.0
million, or $3.56 per share,
for the three months ended March 31,
2018 (after giving retroactive effect to the reverse stock
split of 1-for-14 implemented on May 2,
2019). We have adjusted our net income in the three months
ended March 31, 2019 for a non-cash
fees amortization and accrued finance fees charge of $5.1 million. Please refer to the Adjusted Net
Income reconciliation table, which appears later in this earnings
release.
The increase of $10.6 million in
adjusted net income for the three months ended March 31, 2019 compared to the three months ended
March 31, 2018 is attributable mainly
to a $7.6 million decrease in net
finance expenses, a $2.0 million
decrease in total operating expenses and a $1.0 million increase in operating revenues.
On a non-adjusted basis, our net income amounted to $33.4 million, or $2.19 earnings per diluted share, for the three
months ended March 31, 2019 compared
to net income of $15.0 million, or
$1.91 earnings per diluted share, for
the three months ended March 31, 2018
(after giving retroactive effect to the reverse stock split of
1-for-14).
Operating Revenues
Operating revenues increased by
0.9%, or $1.0 million, to
$112.9 million in the three months
ended March 31, 2019 from
$111.9 million in the three months
ended March 31, 2018.
Operating revenues for the three months ended March 31, 2019 reflect:
- $0.9 million increase in revenues
due to higher fleet utilization of our vessels in the three months
ended March 31, 2019 compared to the
three months ended March 31,
2018.
- $0.1 million increase in revenues
in the three months ended March 31,
2019 compared to the three months ended March 31, 2018 due to the re-chartering of
certain of our vessels at higher rates.
Vessel Operating Expenses
Vessel operating expenses
decreased by 3.4%, or $0.9 million,
to $25.9 million in the three
months ended March 31, 2019 from
$26.8 million in the three
months ended March 31, 2018. The
average daily operating cost per vessel for vessels on time charter
was $5,636 per day for the three
months ended March 31, 2019 compared
to $5,849 per day for the three
months ended March 31, 2018.
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 12.2%,
or $3.3 million, to $23.8 million in the three months ended
March 31, 2019 from $27.1 million in the three months ended
March 31, 2018 mainly due to
decreased depreciation expense for ten vessels for which we
recorded an impairment charge on December
31, 2018.
Amortization of Deferred Dry-docking and Special Survey
Costs
Amortization of deferred dry-docking and special
survey costs increased by $0.4
million, to $2.2 million in
the three months ended March 31, 2019
from $1.8 million in the three months
ended March 31, 2018. The increase
was mainly due to an increased number of vessels dry-docked.
General and Administrative Expenses
General and
administrative expenses increased by $1.7
million, to $6.9 million in
the three months ended March 31,
2019, from $5.2 million in the
three months ended March 31, 2018.
The increase was mainly due to increased share based compensation
and professional fees.
Other Operating Expenses
Other Operating Expenses
include Voyage Expenses.
Voyage Expenses
Voyage expenses increased by
$0.1 million, to $3.3 million in the three months ended
March 31, 2019 from $3.2 million in the three months ended
March 31, 2018.
Interest Expense and Interest Income
Interest expense
decreased by 21.9%, or $5.0 million,
to $17.8 million in the three
months ended March 31, 2019 from
$22.8 million in the three months
ended March 31, 2018. The decrease in
interest expense is attributable to:
(i) a $11.4 million decrease in
interest expense on two of our credit facilities for which we have
recognized an interest expense accrual, which has been classified
on our balance sheet under "Accumulated accrued interest" and
represents future interest expense for the relevant facilities that
has been recognized in advance as a result of the application of
Troubled Debt Restructuring ("TDR") accounting in connection with
our 2018 debt refinancing;
(ii) a $4.0 million increase in
interest expense due to an increase in debt service cost of
approximately 2.3%, partially offset by a $645.1 million decrease in our average debt, to
$1,656.3 million in the three months
ended March 31, 2019, compared to
$2,301.4 million in the three months
ended March 31, 2018; and
(iii) a $2.4 million increase in
the amortization of deferred finance costs and debt discount
related to our 2018 debt refinancing.
As of March 31, 2019, debt
outstanding, gross of deferred finance costs, was $1,641.7 million compared to $2,299.9 million as of March 31, 2018.
Interest income increased by $0.2
million to $1.6 million in the
three months ended March 31, 2019
compared to $1.4 million in the three
months ended March 31, 2018.
Other finance costs, net
Other finance costs, net
decreased by $0.7 million to
$0.3 million in the three months
ended March 31, 2019 compared to
$1.0 million in the three months
ended March 31, 2018 mainly due to
decreased exit fees expenses.
Equity income/(loss) on investments
Equity
income/(loss) on investments decreased by $0.1 million to a $0.1
million loss on investments in the three months ended
March 31, 2019 and relates to the
operating performance of Gemini Shipholdings Corporation, 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, 2019 and 2018.
Other income/(expenses), net
Other income/(expenses),
net was nil in the three months ended March
31, 2019 compared to $9.4
million in expenses in the three months ended March 31, 2018 mainly due to $9.6 million of refinancing-related professional
fees in the prior period.
Adjusted EBITDA
Adjusted EBITDA increased by 1.2%, or
$0.9 million, to $77.5 million in the three months ended
March 31, 2019 from $76.6 million in the three months ended
March 31, 2018. As outlined above,
the increase is mainly attributable to a $1.0 million increase in operating revenues and a
$0.1 million decrease in operating
performance on our equity investments. Adjusted EBITDA for the
three months ended March 31, 2019 is
adjusted for stock based compensation of $0.8 million. Tables reconciling Adjusted EBITDA
to Net Income can be found at the end of this earnings release.
Recent Developments
On April
12, 2019, we completed the refinancing of two of our 13,100
TEU vessels, the Hyundai Honour and Hyundai Respect through a sale
and leaseback arrangement with a term of five years at the end of
which we will reacquire the vessels. The net proceeds amounting to
$144.8 million were applied pro rata
to repay the existing credit facilities secured by mortgages on
these vessels.
At our Special Meeting of Stockholders on March 5, 2019, our shareholders approved an
amendment to our Restated Articles of Incorporation to effect a
reverse stock split of the issued and outstanding shares of common
stock with the exact ratio to be determined by the Board of
Directors. On April 16, 2019, our
Board of Directors determined to effect a reverse stock split of
our issued and outstanding shares of common stock by a ratio of
1-for-14. The reverse stock split occurred, and our common stock
began trading on a split adjusted basis as of the opening of
trading on the NYSE on May 2, 2019
under the existing trading symbol "DAC". The reverse stock split
reduced the number of our outstanding shares of common stock from
213,324,455 to 15,237,456 and affected all issued and outstanding
shares of common stock. No fractional shares were issued in
connection to the reverse stock split. Stockholders who would
otherwise hold a fractional share of our common stock received a
cash payment in lieu of such fractional share. The par value and
other terms of our common stock were not affected by the reverse
stock split. All share and per share data in this Earnings Release
give retroactive effect to this reverse stock split, for both
periods presented.
Conference Call and Webcast
On Tuesday, May 14, 2019 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 21, 2019 by dialing 1 877
344 7529 (US Toll Free Dial In) or +44 (0) 2036 088 021 (Standard
International Dial In) and using 10131488# as the access code.
Audio Webcast
There will also be a live and then
archived webcast of the conference call, including a slide
presentation providing additional company information, 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. 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 the refinancing
transactions; Danaos' ability to achieve the expected benefits of
the refinancing and comply with the terms of its new credit
facilities and other agreements entered into in connection with 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 90 unscheduled off-hire days in the three months
ended March 31, 2019. 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
|
|
2019
|
2018
|
|
Ownership
Days
|
4,950
|
|
4,950
|
|
Less Off-hire
Days:
|
|
|
|
|
Scheduled Off-hire
Days
|
-
|
|
(125)
|
|
Other Off-hire
Days
|
(90)
|
|
(91)
|
|
Operating
Days
|
4,860
|
|
4,734
|
|
Vessel
Utilization
|
98.2%
|
|
95.6%
|
|
|
|
|
|
Operating Revenues
(in '000s of US Dollars)
|
$112,891
|
|
$111,854
|
|
Average Gross
Daily Charter Rate
|
$23,229
|
|
$23,628
|
Fleet List
The following table describes in detail our
fleet deployment profile as of May 13,
2019:
|
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
|
|
February
2022
|
|
Express
Berlin
|
10,100
|
|
2011
|
|
April 2022
|
|
Express
Athens
|
10,100
|
|
2011
|
|
February
2022
|
|
Le
Havre
|
9,580
|
|
2006
|
|
December
2022
|
|
Pusan
C
|
9,580
|
|
2006
|
|
November
2022
|
|
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
|
|
January
2023
|
|
Europe
|
8,468
|
|
2004
|
|
December
2022
|
|
CMA
CGM Moliere
|
6,500
|
|
2009
|
|
August
2021
|
|
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
|
|
June 2019
|
|
Dimitra
C
|
6,402
|
|
2002
|
|
January
2020
|
|
YM
Seattle
|
4,253
|
|
2007
|
|
July 2019
|
|
YM
Vancouver
|
4,253
|
|
2007
|
|
September
2019
|
|
Derby
D
|
4,253
|
|
2004
|
|
May 2019
|
|
ANL
Tongala
|
4,253
|
|
2004
|
|
June 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
2019
|
|
Express
Spain
|
3,400
|
|
2011
|
|
June 2019
|
|
Express
Argentina
|
3,400
|
|
2010
|
|
June 2019
|
|
Express
Brazil
|
3,400
|
|
2010
|
|
July 2019
|
|
Express
France
|
3,400
|
|
2010
|
|
September
2019
|
|
Singapore
|
3,314
|
|
2004
|
|
October
2019
|
|
Colombo
|
3,314
|
|
2004
|
|
February
2020
|
|
MSC
Zebra
|
2,602
|
|
2001
|
|
September
2020
|
|
Amalia
C
|
2,452
|
|
1998
|
|
August
2019
|
|
Danae
C
|
2,524
|
|
2001
|
|
January
2020
|
|
Advance
|
2,200
|
|
1997
|
|
July 2019
|
|
Future
|
2,200
|
|
1997
|
|
June 2019
|
|
Sprinter
|
2,200
|
|
1997
|
|
June 2019
|
|
Stride
|
2,200
|
|
1997
|
|
August
2019
|
|
Progress
C
|
2,200
|
|
1998
|
|
June 2019
|
|
Bridge
|
2,200
|
|
1998
|
|
August
2019
|
|
Highway
|
2,200
|
|
1998
|
|
June 2019
|
|
Vladivostok
|
2,200
|
|
1997
|
|
October
2019
|
|
|
|
|
|
|
|
Catherine C
(2)
|
6,422
|
|
2001
|
|
November
2022
|
|
Leo C
(2)
|
6,422
|
|
2002
|
|
November
2022
|
|
Suez
Canal(2)
|
5,610
|
|
2002
|
|
June 2019
|
|
Genoaľ2)
|
5,544
|
|
2002
|
|
July 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
OPERATING
REVENUES
|
$112,891
|
|
$111,854
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
Vessel operating
expenses
|
(25,871)
|
|
(26,849)
|
|
Depreciation &
amortization
|
(25,957)
|
|
(28,903)
|
|
General &
administrative
|
(6,869)
|
|
(5,182)
|
|
Other operating
expenses
|
(3,270)
|
|
(3,161)
|
|
Income From
Operations
|
50,924
|
|
47,759
|
|
|
|
|
|
|
OTHER
INCOME/(EXPENSES)
|
|
|
|
|
Interest
income
|
1,596
|
|
1,375
|
|
Interest
expense
|
(17,843)
|
|
(22,849)
|
|
Other finance
expenses
|
(324)
|
|
(971)
|
|
Equity income/(loss)
on investments
|
(84)
|
|
(26)
|
|
Other
income/(expenses), net
|
67
|
|
(9,385)
|
|
Realized loss on
derivatives
|
(893)
|
|
(911)
|
|
Total Other
Expenses, net
|
(17,481)
|
|
(32,767)
|
|
|
|
|
|
|
Net
Income
|
$33,443
|
|
$14,992
|
|
|
|
|
|
|
EARNINGS PER
SHARE
|
|
|
|
|
Basic earnings per
share1
|
$2.24
|
|
$1.91
|
|
Diluted earnings per
share1
|
$2.19
|
|
$1.91
|
|
Basic weighted
average number of common shares (in thousands of
shares)1
|
14,939
|
|
7,843
|
|
Diluted weighted
average number of common shares (in thousands of
shares)1
|
15,237
|
|
7,843
|
|
Non-GAAP
Measures2
|
|
Reconciliation of
Net Income to Adjusted Net Income – Unaudited
|
|
|
|
|
|
Three
months
ended
|
|
Three
months
ended
|
|
March
31,
|
March
31,
|
|
2019
|
|
2018
|
|
Net income
|
$33,443
|
|
$14,992
|
|
Amortization of
financing fees, debt discount & finance fees accrued
|
5,126
|
|
3,351
|
|
Refinancing
professional fees
|
-
|
|
9,608
|
|
Adjusted Net
Income
|
$38,569
|
|
$27,951
|
|
Adjusted Earnings
Per Share, diluted1
|
$2.53
|
|
$3.56
|
|
Diluted weighted
average number of shares (in thousands)1
|
15,237
|
|
7,843
|
|
|
|
|
|
1
|
Basic and diluted
earnings per share and basic and diluted weighted average number of
shares give retroactive effect to the 1-for-14 reverse stock split,
for both periods presented.
|
|
2
|
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, 2019 and 2018. 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,
|
|
|
|
2019
|
|
2018
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$81,309
|
|
$77,275
|
|
Accounts receivable,
net
|
|
7,443
|
|
9,225
|
|
Other current
assets
|
|
36,315
|
|
33,250
|
|
|
|
125,067
|
|
119,750
|
|
NON-CURRENT
ASSETS
|
|
|
|
|
|
Fixed assets,
net
|
|
2,456,891
|
|
2,480,329
|
|
Deferred charges,
net
|
|
10,961
|
|
13,031
|
|
Investments in
affiliates
|
|
7,279
|
|
7,363
|
|
Other non-current
assets
|
|
64,204
|
|
59,369
|
|
|
|
2,539,335
|
|
2,560,092
|
|
TOTAL
ASSETS
|
|
$2,664,402
|
|
$2,679,842
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
Long-term debt,
current portion
|
|
$112,588
|
|
$113,777
|
|
Accumulated accrued
interest, current portion
|
|
35,543
|
|
35,782
|
|
Accounts payable,
accrued liabilities & other current liabilities
|
|
67,104
|
|
73,142
|
|
|
|
215,235
|
|
222,701
|
|
LONG-TERM
LIABILITIES
|
|
|
|
|
|
Long-term debt,
net
|
|
1,488,033
|
|
1,508,108
|
|
Accumulated accrued
interest, net of current portion
|
|
189,177
|
|
200,574
|
|
Other long-term
liabilities
|
|
46,543
|
|
57,606
|
|
|
|
1,723,753
|
|
1,766,288
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Common
stock1
|
|
152
|
|
152
|
|
Additional paid-in
capital1
|
|
728,392
|
|
727,562
|
|
Accumulated other
comprehensive loss
|
|
(118,422)
|
|
(118,710)
|
|
Retained
earnings
|
|
115,292
|
|
81,849
|
|
|
|
725,414
|
|
690,853
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$2,664,402
|
|
$2,679,842
|
|
|
|
|
|
|
1
|
Common stock and
Additional paid-in capital give retroactive effect to the 1-for-14
reverse stock split, for both periods presented.
|
|
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,
|
|
|
2019
|
|
2018
|
|
Operating
Activities:
|
|
|
|
|
Net income
|
$33,443
|
|
$14,992
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
23,766
|
|
27,060
|
|
Amortization of
deferred drydocking & special survey costs, finance cost, debt
discount and other finance fees accrued
|
7,317
|
|
5,194
|
|
PIK
interest
|
840
|
|
-
|
|
Payments for
drydocking/special survey
|
(121)
|
|
(6,393)
|
|
Amortization of
deferred realized losses on cash flow interest rate
swaps
|
893
|
|
911
|
|
Equity loss on
investments
|
84
|
|
26
|
|
Stock based
compensation
|
830
|
|
-
|
|
Accounts
receivable
|
1,782
|
|
(239)
|
|
Other assets, current
and non-current
|
(7,166)
|
|
(6,712)
|
|
Accounts payable and
accrued liabilities
|
918
|
|
6,636
|
|
Other liabilities,
current and long-term
|
(3,584)
|
|
(5,886)
|
|
Net Cash provided
by Operating Activities
|
59,002
|
|
35,589
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
Vessel additions and
advances
|
(1,667)
|
|
(716)
|
|
Net Cash used in
Investing Activities
|
(1,667)
|
|
(716)
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
Debt
repayment
|
(29,714)
|
|
(41,601)
|
|
Payments of
accumulated accrued interest
|
(9,100)
|
|
-
|
|
Finance
costs
|
(14,487)
|
|
-
|
|
Net Cash used in
Financing Activities
|
(53,301)
|
|
(41,601)
|
|
Net
Increase/(Decrease) in cash, cash equivalents and restricted
cash
|
4,034
|
|
(6,728)
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
77,275
|
|
69,707
|
|
Cash, cash
equivalents and restricted cash, end of period
|
$81,309
|
|
$62,979
|
|
DANAOS
CORPORATION
|
|
Reconciliation of
Net Income to Adjusted EBITDA - Unaudited
|
|
(Expressed in
thousands of United States dollars)
|
|
|
|
Three
months
ended
|
|
March
31,
|
|
2019
|
|
Net income
|
$33,443
|
|
Depreciation
|
23,766
|
|
Amortization of
deferred drydocking & special survey costs
|
2,191
|
|
Amortization of
deferred finance costs, debt discount and other finance
fees
accrued
|
5,126
|
|
Amortization of
deferred realized losses on interest rate swaps
|
893
|
|
Interest
income
|
(1,596)
|
|
Interest
expense
|
12,885
|
|
Stock based
compensation
|
830
|
|
Refinancing
professional fees
|
-
|
|
Adjusted
EBITDA(1)
|
$77,538
|
|
|
|
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, stock based compensation 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, 2019 and 2018. 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 original
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SOURCE Danaos Corporation