Danaos Corporation (“Danaos”) (NYSE: DAC), one of the world’s
largest independent owners of containerships, today reported
unaudited results for the fourth quarter and the year ended
December 31, 2020.
Highlights for the Fourth Quarter and Year Ended December 31,
2020:
- Adjusted net income1 of $47.8 million, or $2.29 per share,
for the three months ended December 31, 2020 compared to $38.0
million, or $2.01 per share, for the three months ended December
31, 2019, an increase of 25.8%. Adjusted net income1 of $170.9
million, or $7.18 per share, for the year ended December 31, 2020
compared to $148.7 million, or $9.17 per share, for the year ended
December 31, 2019, an increase of 14.9%.
- Operating revenues of $119.6 million for the three months
ended December 31, 2020 compared to $110.2 million for the three
months ended December 31, 2019, an increase of 8.5%. Operating
revenues of $461.6 million for the year ended December 31, 2020
compared to $447.2 million for the year ended December 31, 2019, an
increase of 3.2%.
- Adjusted EBITDA1 of $83.0 million for the three
months ended December 31, 2020 compared to $78.1 million for the
three months ended December 31, 2019, an increase of 6.3%. Adjusted
EBITDA1 of $318.3 million for the year ended December 31,
2020 compared to $310.6 million for the year ended December 31,
2019, an increase of 2.5%.
- Total contracted operating revenues were $1.2 billion2
as of December 31, 2020, with charters extending through 2028
and remaining average contracted charter duration of 3.1 years,
weighted by aggregate contracted charter hire.
- Charter coverage of 94% for the next 12 months based on
current operating revenues and 91% in terms of contracted operating
days.
Three Months and Year Ended
December 31, 2020
Financial Summary -
Unaudited
(Expressed in thousands of United
States dollars, except per share amounts)
Three months ended
Three months ended
Year ended
Year ended
December 31,
December 31,
December 31,
December 31,
2020
2019
2020
2019
Operating revenues
$119,642
$110,204
$461,594
$447,244
Net income
$43,179
$33,817
$153,550
$131,253
Adjusted net income1
$47,810
$37,969
$170,888
$148,675
Earnings per share, diluted
$2.07
$1.79
$6.45
$8.09
Adjusted earnings per share, diluted1
$2.29
$2.01
$7.18
$9.17
Diluted weighted average number of shares
(in thousands)
20,874
18,927
23,805
16,221
Adjusted EBITDA1
$83,009
$78,118
$318,331
$310,565
1. Adjusted net income, adjusted earnings
per share and adjusted EBITDA are non-GAAP measures. Please refer
to the reconciliation of net income to adjusted net income and net
income to adjusted EBITDA.
2. Contracted revenue as of December 31,
2020 on the basis of concluded charter contracts through February
15, 2021.
Danaos’ CEO Dr. John Coustas
commented:
"In the fourth quarter of 2020, we witnessed the most
outstanding turnaround in the container industry for as long as I
can remember. Market participants were caught by surprise as the
chronic underinvestment in capacity coupled with a sudden
resurgence of demand created a spike that drove container box rates
to all-time highs. This led to a massive increase in our customers’
profitability and significantly diminished the counterparty risk
that was so prevalent at the end of the first quarter of 2020. The
charter market, in turn, rapidly strengthened, resulting in
decade-high charter rates across almost all vessel types.
Now everyone is focused on whether the current market strength
is sustainable and for how long. Fortunately, incremental vessel
supply will remain low for the time being. Although there have been
new orders placed, the current orderbook is at historically low
levels. Since there is a two-year lead time for new orders to hit
the water, supply growth should be moderate for the next couple of
years. What will happen next depends a lot on the environmental
initiatives, regulations and of course demand.
As far as Danaos is concerned we experienced a strong quarter,
completed delivery of all contracted vessels, realized significant
gains, displayed exceptional rechartering performance and entered
into agreements for a very important refinancing.
This quarter we saw an improvement in Adjusted EBITDA and
Adjusted Net Income compared to the same quarter in the prior year.
This improvement should be even more pronounced in the coming
quarters as new contracted charters at significantly higher rates
start to contribute to our top line.
We have concluded 27 recharterings over the past three months
for periods of 12-24 months at rates between two and three times
the rates of the expiring charters. In doing so, we have
practically covered 91% of our 2021 operating days and a
significant portion of our 2022 operating days. We currently expect
revenue in 2021 to exceed 2020 revenue by at least $100
million.
The recent performance of both ZIM and HMM has resulted in a
$23.8 million increase in the recorded value of our bond holdings
in these two companies, which increased in value to approximately
$63 million as of the end of 2020. The ZIM IPO has also provided a
marked-to-market value for our 10.2mn shares in ZIM, which have a
value exceeding $200 million based on Zim’s closing share price of
$20.12 per share on February 12, 2021. These shares were valued at
$75,000 as of the end of 2020.
We have also recently concluded a $300 million bond offering,
which was over three times oversubscribed, an extraordinary
accomplishment for a first-time issuer. These funds, together with
another $950 million of bank and lease financing, will be used to
refinance most of our existing credit facilities and form the basis
of our new strategy as we will not have any maturities until
2025.
We are happy that the market has acknowledged our
accomplishments, leading to a dramatic outperformance of our share
price as compared to our peers. We are well-positioned and
committed to continue to take actions to create value for our
shareholders."
Three months ended December 31, 2020
compared to the three months ended December 31, 2019
During the three months ended December 31, 2020, Danaos had an
average of 58.5 containerships compared to 55.0 containerships
during the three months ended December 31, 2019. Our fleet
utilization for the three months ended December 31, 2020 was 97.9%
compared to 97.0% for the three months ended December 31, 2019.
Our adjusted net income amounted to $47.8 million, or $2.29 per
share, for the three months ended December 31, 2020 compared to
$38.0 million, or $2.01 per share, for the three months ended
December 31, 2019. We have adjusted our net income in the three
months ended December 31, 2020 for amortization of non-cash fees
and accrued finance fees charges of $4.6 million. Please refer to
the Adjusted Net Income reconciliation table, which appears later
in this earnings release.
The increase of $9.8 million in adjusted net income for the
three months ended December 31, 2020 compared to the three months
ended December 31, 2019 is attributable mainly to a $9.4 million
increase in operating revenues, a $6.0 million decrease in net
finance expenses and a $0.5 million increase in the operating
performance of our equity investment in Gemini Shipholdings
Corporation (“Gemini”), which were partially offset by a $6.1
million increase in total operating expenses.
On a non-adjusted basis, our net income amounted to $43.2
million, or $2.07 earnings per diluted share, for the three months
ended December 31, 2020 compared to net income of $33.8 million, or
$1.79 earnings per diluted share, for the three months ended
December 31, 2019.
Operating Revenues
Operating revenues increased by 8.5%, or $9.4 million, to $119.6
million in the three months ended December 31, 2020 from $110.2
million in the three months ended December 31, 2019.
Operating revenues for the three months ended December 31, 2020
reflect:
- a $7.6 million increase in revenues in the three months ended
December 31, 2020 compared to the three months ended December 31,
2019 mainly as a result of contractual increases in charter rates
of vessels under long-term charters, partially offset by lower
re-chartering rates between the two quarters for certain of our
vessels;
- a $6.1 million increase in revenues in the three months ended
December 31, 2020 compared to the three months ended December 31,
2019 due to the acquisition of new vessels;
- a $2.1 million increase in revenues due to higher fleet
utilization of our vessels in the three months ended December 31,
2020 compared to the three months ended December 31, 2019.
- a $6.4 million decrease in revenues in the three months ended
December 31, 2020 compared to the three months ended December 31,
2019 due to lower non-cash revenue recognition in accordance with
US GAAP; and
Vessel Operating Expenses
Vessel operating expenses increased by $4.2 million to $28.7
million in the three months ended December 31, 2020 from $24.5
million in the three months ended December 31, 2019, primarily as a
result of the increase in the average number of vessels in our
fleet and an overall increase in the average daily operating cost
to $5,571 per vessel per day for vessels on time charter for the
three months ended December 31, 2020 compared to $5,215 per vessel
per day for the three months ended December 31, 2019. Management
believes that our daily operating costs are 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 6.1%, or $1.5 million, to
$25.9 million in the three months ended December 31, 2020 from
$24.4 million in the three months ended December 31, 2019 mainly
due to the acquisition of the vessels Niledutch Lion, Phoebe,
Charleston, Bremen and C Hamburg and the 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 $0.4 million to $2.6 million in the three months ended
December 31, 2020 from $2.2 million in the three months ended
December 31, 2019.
General and Administrative Expenses
General and administrative expenses decreased by $0.6 million to
$6.4 million in the three months ended December 31, 2020, from $7.0
million in the three months ended December 31, 2019. The decrease
was mainly due to decreased non-cash recognition of share-based
compensation.
Other Operating Expenses
Other Operating Expenses include Voyage Expenses.
Voyage Expenses
Voyage expenses increased by $0.6 million to $3.4 million in the
three months ended December 31, 2020 from $2.8 million in the three
months ended December 31, 2019 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 32.2%, or $5.5 million, to $11.6
million in the three months ended December 31, 2020 from $17.1
million in the three months ended December 31, 2019. The decrease
in interest expense is attributable to:
- a $6.0 million decrease in interest expense due to a decrease
in debt service cost of approximately 2% and a $92.6 million
decrease in our average debt (including leaseback obligations), to
$1,482.5 million in the three months ended December 31, 2020,
compared to $1,575.1 million in the three months ended December 31,
2019; and
- a $0.5 million increase in the amortization of deferred finance
costs and debt discount related to our 2018 debt refinancing.
As of December 31, 2020, our outstanding bank debt, gross of
deferred finance costs, was $1,368.1 million and our leaseback
obligation was $123.4 million compared to bank debt of $1,423.8
million and our leaseback obligation of $138.2 million as of
December 31, 2019.
Interest income remained stable at $1.7 million in each of the
three months ended December 31, 2020 and December 31, 2019.
Other finance costs, net
Other finance costs, net remained stable at $0.3 million in each
of the three months ended December 31, 2020 and December 31,
2019.
Equity income on investments
Equity income on investments increased by $0.5 million to $1.6
million of income on investments in the three months ended December
31, 2020 compared to $1.1 million in the three months ended
December 31, 2019 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
December 31, 2020 and December 31, 2019.
Other income, net
Other income, net was $0.2 million in the three months ended
December 31, 2020 compared to $0.1 million in the three months
ended December 31, 2019.
Adjusted EBITDA
Adjusted EBITDA increased by 6.3%, or $4.9 million, to $83.0
million in the three months ended December 31, 2020 from $78.1
million in the three months ended December 31, 2019. As outlined
above, the increase is mainly attributable to a $9.4 million
increase in operating revenues and a $0.5 million increase in the
operating performance of our equity investees, which were partially
offset by a $5.0 million increase in total operating expenses.
Adjusted EBITDA for the three months ended December 31, 2020 is
adjusted for stock-based compensation of $0.3 million. Tables
reconciling Adjusted EBITDA to Net Income can be found at the end
of this earnings release.
Year ended December 31, 2020 compared
to the year ended December 31, 2019
During the year ended December 31, 2020, Danaos had an average
of 57.3 containerships compared to 55.0 containerships during the
year ended December 31, 2019. Our fleet utilization for the year
ended December 31, 2020 was 96.3% compared to 98.3% for the year
ended December 31, 2019. Adjusted fleet utilization, excluding the
effect of 188 days of incremental off-hire due to shipyard delays
related to the COVID-19 pandemic, was 97.2% in the year ended
December 31, 2020.
Our adjusted net income amounted to $170.9 million, or $7.18 per
share, for the year ended December 31, 2020 compared to $148.7
million, or $9.17 per share, for the year ended December 31, 2019.
We have adjusted our net income in the year ended December 31, 2020
for amortization of non-cash fees and accrued finance fees charge
of $17.3 million. Please refer to the Adjusted Net Income
reconciliation table, which appears later in this earnings
release.
The increase of $22.2 million in adjusted net income for the
year ended December 31, 2020 compared to the year ended December
31, 2019 is attributable mainly to a $19.1 million decrease in net
finance expenses, a $14.4 million increase in operating revenues
and a $4.7 million increase in the operating performance of our
equity investment in Gemini, which were partially offset by a $16.0
million increase in total operating expenses.
On a non-adjusted basis, our net income amounted to $153.6
million, or $6.45 earnings per diluted share, for the year ended
December 31, 2020 compared to net income of $131.3 million, or
$8.09 earnings per diluted share, for the year ended December 31,
2019.
Operating Revenues
Operating revenues increased by 3.2%, or $14.4 million, to
$461.6 million in the year ended December 31, 2020 from $447.2
million in the year ended December 31, 2019.
Operating revenues for the year ended December 31, 2020
reflect:
- a $24.5 million increase in revenues in the year ended December
31, 2020 compared to the year ended December 31, 2019 mainly as a
result of contractual increases in charter rates of vessels under
long-term charters, partially offset by lower re-chartering rates
between the two quarters for certain of our vessels;
- a $16.1 million increase in revenues in the year ended December
31, 2020 compared to the year ended December 31, 2019 due to the
acquisition of new vessels;
- a $22.2 million decrease in revenues in the year ended December
31, 2020 compared to the year ended December 31, 2019 due to lower
non-cash revenue recognition in accordance with US GAAP; and
- a $4.0 million decrease in revenues due to lower fleet
utilization of our vessels in the year ended December 31, 2020
compared to the year ended December 31, 2019 mainly due to the
scheduled installation of scrubbers and dry-dockings of our
vessels, of which $3.2 million relates to incremental delays in the
Chinese shipyards where these activities were being performed due
to the COVID-19 pandemic.
Vessel Operating Expenses
Vessel operating expenses increased by $8.4 million to $110.9
million in the year ended December 31, 2020 from $102.5 million in
the year ended December 31, 2019, primarily as a result of the
increase in the average number of vessels in our fleet and an
overall increase in the average daily operating cost to $5,586 per
vessel per day for vessels on time charter for the year ended
December 31, 2020 compared to $5,506 per vessel per day for the
year ended December 31, 2019. Management believes that our daily
operating costs are 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 5.2%, or $5.0 million, to
$101.5 million in the year ended December 31, 2020 from $96.5
million in the year ended December 31, 2019 mainly due to the
acquisition of the vessels Niledutch Lion, Phoebe, Charleston,
Bremen and C Hamburg and the 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 $2.3 million to $11.0 million in the year ended
December 31, 2020 from $8.7 million in the year ended December 31,
2019.
General and Administrative Expenses
General and administrative expenses decreased by $2.5 million to
$24.3 million in the year ended December 31, 2020, from $26.8
million in the year ended December 31, 2019. The decrease was
mainly due to decreased non-cash recognition of share-based
compensation.
Other Operating Expenses
Other Operating Expenses include Voyage Expenses.
Voyage Expenses
Voyage expenses increased by $2.7 million to $14.3 million in
the year ended December 31, 2020 from $11.6 million in the year
ended December 31, 2019 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 25.8%, or $18.6 million, to $53.5
million in the year ended December 31, 2020 from $72.1 million in
the year ended December 31, 2019. The decrease in interest expense
is due to a decrease in debt service cost by approximately 1.5% and
a $96.1 million decrease in our average debt (including leaseback
obligations), to $1,519.9 million in the year ended December 31,
2020, compared to $1,616.0 million in the year ended December 31,
2019.
As of December 31, 2020, our outstanding bank debt, gross of
deferred finance costs, was $1,368.1 million and our leaseback
obligation was $123.4 million compared to bank debt of $1,423.8
million and our leaseback obligation of $138.2 million as of
December 31, 2019.
Interest income increased by $0.2 million to $6.6 million in the
year ended December 31, 2020 compared to $6.4 million in the year
ended December 31, 2019.
Other finance costs, net
Other finance costs, net decreased by $0.4 million to $2.3
million in the year ended December 31, 2020 compared to $2.7
million in the year ended December 31, 2019 mainly due to the
decrease in finance costs related to the leaseback obligations,
partially offset by lease termination fees in the year ended
December 31, 2020.
Equity income on investments
Equity income on investments increased by $4.7 million to $6.3
million of income on investments in the year ended December 31,
2020 compared to $1.6 million in the year ended December 31, 2019
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 $3.6 million in each of the years ended December
31, 2020 and December 31, 2019.
Other income, net
Other income, net was remained stable at $0.6 million in each of
the years ended December 31, 2020 and December 31, 2019.
Adjusted EBITDA
Adjusted EBITDA increased by 2.5%, or $7.7 million, to $318.3
million in the year ended December 31, 2020 from $310.6 million in
the year ended December 31, 2019. As outlined above, the increase
is mainly attributable to a $14.4 million increase in operating
revenues and a $4.7 million increase in the operating performance
of our equity investees, which were partially offset by a $11.4
million increase in operating expenses. Adjusted EBITDA for the
year ended December 31, 2020 is adjusted for stock-based
compensation of $1.2 million. Tables reconciling Adjusted EBITDA to
Net Income can be found at the end of this earnings release.
Recent Developments
On February 4, 2021 we announced the pricing of our offering of
$300 million of 8.500% senior unsecured notes due 2028. We intend
to use the net proceeds from the offering, together with a new $815
million senior secured credit facility and a new $135 million sale
leaseback arrangement, to implement a $1.25 billion refinancing of
a substantial majority of our outstanding senior secured
indebtedness. The offering closed on February 11, 2021.
On January 27, 2021, ZIM completed its initial public offering
and listing on the New York Stock Exchange of its ordinary shares.
We currently own 10,186,950 ordinary shares of ZIM, which
shareholding interest was valued at $205.0 million as of February
12, 2021 (based on the last reported trading price of ZIM’s
ordinary shares on the NYSE) and recorded at a book value of $75
thousand as of December 31, 2020.
On January 20, 2021 we received $3.9 million from Hanjin
Shipping as a partial payment of common benefit claim applied to
the unpaid charter hires plus other outstandings and interest for
the period from the date of Hanjin Shipping’s filing for bankruptcy
until the termination notices for each respective charterparty.
On February 12, 2021, the Board and the Compensation Committee
awarded 150,000 shares of common stock to officers and directors of
the Company and employees of our Manager, Danaos Shipping Co. Ltd.,
under the auspices of the Company’s Equity Compensation Plan.
In December 2020 we took delivery of the two 9,012 TEU container
vessels built in 2009 Bremen and C Hamburg.
Conference Call and
Webcast
On Tuesday, February 16, 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 February 23, 2021 by dialing 1 877 344 7529 (US Toll Free
Dial In) or 1-412-317-0088 (Standard International Dial In) and
using 10152390# 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; the effects of the 2018
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 2018 refinancing; our ability to consummate our
contemplated debt refinancing in 2021 and achieve the expected
benefits of such debt 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 30 unscheduled off-hire days in the three months
ended December 31, 2020. 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
Second Quarter
Third Quarter
Fourth Quarter
2020
2020
2020
2020
Total
Ownership Days
5,073
5,193
5,336
5,380
20,982
Less Off-hire Days:
Scheduled Off-hire Days
(336)
(60)
(10)
(81)
(487)
Other Off-hire Days
(104)
(92)
(60)
(30)
(286)
Operating Days
4,633
5,041
5,266
5,269
20,209
Vessel Utilization
91.3%
97.1%
98.7%
97.9%
96.3%
Operating Revenues (in '000s of US
Dollars)
$106,196
$116,824
$118,932
$119,642
$461,594
Average Gross Daily Charter
Rate
$22,922
$23,175
$22,585
$22,707
$22,841
Vessel Utilization (No. of
Days)
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
2019
2019
2019
2019
Total
Ownership Days
4,950
5,005
5,060
5,060
20,075
Less Off-hire Days:
Scheduled Off-hire Days
-
(22)
(41)
(123)
(186)
Other Off-hire Days
(90)
(10)
(24)
(29)
(153)
Operating Days
4,860
4,973
4,995
4,908
19,736
Vessel Utilization
98.2%
99.4%
98.7%
97.0%
98.3%
Operating Revenues (in '000s of US
Dollars)
$112,891
$112,319
$111,830
$110,204
$447,244
Average Gross Daily Charter
Rate
$23,229
$22,586
$22,388
$22,454
$22,661
Fleet List
The following table describes in detail our fleet deployment
profile as of February 15, 2021:
Vessel Name
Vessel Size (TEU)
Year Built
Expiration of
Charter(1)
Hyundai Ambition (ex MSC Ambition)
13,100
2012
June 2024
Hyundai Speed (ex Maersk Exeter)
13,100
2012
June 2024
Hyundai Smart (ex 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
April 2023
Pusan C
9,580
2006
March 2023
Bremen (ex CPO Bremen)
9,012
2009
December 2022
C Hamburg (ex CPO Hamburg)
9,012
2009
January 2023
Niledutch Lion
8,626
2008
February 2022
Charleston (ex SM 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
June 2021
Dimitra C
6,402
2002
January 2023
Seattle C
4,253
2007
September 2021
YM Vancouver
4,253
2007
December 2021
Derby D
4,253
2004
January 2022
ANL Tongala
4,253
2004
March 2021
Rio Grande (ex ZIM 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
May 2021
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
March 2021
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 (ex MSC Zebra)
2,602
2001
August 2021
Amalia C
2,452
1998
May 2021
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
March 2021
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
September 2021
(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
Year ended
Year ended
December 31,
December 31,
December 31,
December 31,
2020
2019
2020
2019
OPERATING REVENUES
$119,642
$110,204
$461,594
$447,244
OPERATING EXPENSES
Vessel operating expenses
(28,714)
(24,467)
(110,946)
(102,502)
Depreciation & amortization
(28,534)
(26,572)
(112,563)
(105,238)
General & administrative
(6,440)
(7,054)
(24,341)
(26,837)
Other operating expenses
(3,377)
(2,799)
(14,264)
(11,593)
Income From Operations
52,577
49,312
199,480
201,074
OTHER INCOME/(EXPENSES)
Interest income
1,686
1,663
6,638
6,414
Interest expense
(11,637)
(17,166)
(53,502)
(72,069)
Other finance expenses
(345)
(300)
(2,335)
(2,702)
Equity income on investments
1,579
1,094
6,308
1,602
Other income/(loss), net
232
127
593
556
Realized loss on derivatives
(913)
(913)
(3,632)
(3,622)
Total Other Expenses, net
(9,398)
(15,495)
(45,930)
(69,821)
Net Income
$43,179
$33,817
$153,550
$131,253
EARNINGS PER SHARE
Basic earnings per share
$2.09
$1.83
$6.51
$8.29
Diluted earnings per share
$2.07
$1.79
$6.45
$8.09
Basic weighted average number of common
shares (in thousands of shares)
20,658
18,494
23,589
15,835
Diluted weighted average number of common
shares (in thousands of shares)
20,874
18,927
23,805
16,221
Non-GAAP Measures1
Reconciliation of Net Income
to Adjusted Net Income – Unaudited
Three months ended
Three months ended
Year ended
Year ended
December 31,
December 31,
December 31,
December 31,
2020
2019
2020
2019
Net income
$43,179
$33,817
$153,550
$131,253
Amortization of financing fees, debt
discount & finance fees accrued
4,631
4,152
17,338
17,422
Adjusted Net Income
$47,810
$37,969
$170,888
$148,675
Adjusted Earnings Per Share,
diluted
$2.29
$2.01
$7.18
$9.17
Diluted weighted average number of shares
(in thousands)
20,874
18,927
23,805
16,221
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 and year ended
December 31, 2020 and 2019. 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
December 31,
December 31,
2020
2019
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$65,663
$139,170
Accounts receivable, net
7,556
7,145
Other current assets
45,229
44,071
118,448
190,386
NON-CURRENT ASSETS
Fixed assets, net
2,479,937
2,389,874
Deferred charges, net
17,339
11,455
Investments in affiliates
15,273
8,965
Other non-current assets
83,383
82,339
2,595,932
2,492,633
TOTAL ASSETS
$2,714,380
$2,683,019
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Long-term debt, current portion
$155,662
$119,673
Accumulated accrued interest, current
portion
18,036
34,137
Long-term leaseback obligations, current
portion
24,515
16,342
Accounts payable, accrued liabilities
& other current liabilities
41,472
52,928
239,685
223,080
LONG-TERM LIABILITIES
Long-term debt, net
1,187,345
1,270,663
Accumulated accrued interest, net of
current portion
136,433
156,583
Long-term leaseback obligations, net
95,585
121,872
Other long-term liabilities
19,755
29,131
1,439,118
1,578,249
STOCKHOLDERS’ EQUITY
Common stock
204
248
Additional paid-in capital
755,390
785,274
Accumulated other comprehensive loss
(86,669)
(116,934)
Retained earnings
366,652
213,102
1,035,577
881,690
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$2,714,380
$2,683,019
DANAOS CORPORATION
Condensed Consolidated
Statements of Cash Flows - Unaudited
(Expressed in thousands of
United States dollars)
Three months ended
Three months ended
Year ended
Year ended
December 31,
December 31,
December 31,
December 31,
2020
2019
2020
2019
Operating Activities:
Net income
$43,179
$33,817
$153,550
$131,253
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
25,927
24,364
101,531
96,505
Amortization of deferred drydocking &
special survey costs, finance cost, debt discount and other finance
fees accrued
7,238
6,360
28,900
26,155
PIK interest
675
830
2,911
3,375
Payments for drydocking/special survey
(3,519)
(1,943)
(16,916)
(7,157)
Amortization of deferred realized losses
on cash flow interest rate swaps
913
913
3,632
3,622
Equity income on investments
(1,579)
(1,094)
(6,308)
(1,602)
Stock based compensation
302
1,181
1,199
4,241
Accounts receivable
3,290
492
(411)
2,080
Other assets, current and non-current
857
(5,754)
3,199
(19,750)
Accounts payable and accrued
liabilities
1,638
(2,618)
2,252
(3,181)
Other liabilities, current and
long-term
726
(4,315)
(7,860)
(15,663)
Net Cash provided by Operating
Activities
79,647
52,233
265,679
219,878
Investing Activities:
Vessel additions and advances
(64,512)
(6,598)
(170,661)
(21,360)
Investments
-
-
(75)
-
Net Cash used in Investing
Activities
(64,512)
(6,598)
(170,736)
(21,360)
Financing Activities:
Proceeds from sale-leaseback of
vessels
-
-
139,080
146,523
Proceeds from long-term debt
33,150
-
69,850
-
Payments of leaseback obligations
(5,962)
(3,160)
(153,904)
(8,309)
Debt repayment
(46,998)
(31,183)
(146,747)
(262,572)
Payments of accumulated accrued
interest
(4,853)
(8,512)
(25,639)
(35,358)
Repurchase of common stock
(31,127)
-
(31,127)
-
Paid-in capital
-
54,440
-
54,440
Share issuance costs
-
(873)
-
(873)
Finance costs
(50)
-
(19,963)
(30,474)
Net Cash provided by/(used in)
Financing Activities
(55,840)
10,712
(168,450)
(136,623)
Net Increase/(Decrease) in cash and cash
equivalents
(40,705)
56,347
(73,507)
61,895
Cash and cash equivalents, beginning of
period
106,368
82,823
139,170
77,275
Cash and cash equivalents, end of
period
$65,663
$139,170
$65,663
$139,170
DANAOS CORPORATION
Reconciliation of Net Income
to Adjusted EBITDA - Unaudited
(Expressed in thousands of
United States dollars)
Three months ended
Three months ended
Year ended
Year ended
December 31,
December 31,
December 31,
December 31,
2020
2019
2020
2019
Net income
$43,179
$33,817
$153,550
$131,253
Depreciation
25,927
24,364
101,531
96,505
Amortization of deferred drydocking &
special survey costs
2,607
2,208
11,032
8,733
Amortization of deferred finance costs,
debt discount and other finance fees accrued
4,631
4,152
17,338
17,422
Amortization of deferred realized losses
on interest rate swaps
913
913
3,632
3,622
Interest income
(1,686)
(1,663)
(6,638)
(6,414)
Interest expense
7,136
13,146
36,687
55,203
Stock based compensation
302
1,181
1,199
4,241
Adjusted EBITDA(1)
$83,009
$78,118
$318,331
$310,565
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 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 and year ended
December 31, 2020 and 2019. 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/20210216005671/en/
Evangelos Chatzis Chief Financial Officer Danaos
Corporation Athens, Greece Tel.: +30 210 419 6480 E-Mail:
cfo@danaos.com
Iraklis Prokopakis Senior Vice President and Chief
Operating Officer Danaos Corporation Athens, Greece Tel.: +30 210
419 6400 E-Mail: coo@danaos.com
Investor Relations and Financial Media Rose & Company
New York Tel. 212-359-2228 E-Mail:
danaos@rosecoglobal.com
Danaos (NYSE:DAC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Danaos (NYSE:DAC)
Historical Stock Chart
From Sep 2023 to Sep 2024