ATHENS,
Greece, Nov. 12, 2024 /PRNewswire/ -- Danaos
Corporation ("Danaos") (NYSE: DAC), one of the world's largest
independent owners of container vessels and drybulk vessels, today
reported unaudited results for the period ended September 30, 2024.
Highlights for the Third Quarter and Nine Months Ended
September 30, 2024:
|
Financial
Summary
|
|
Three Months Ended
September 30, 2024 and Three Months Ended September 30,
2023
|
|
Unaudited
|
|
(Expressed in
thousands of United States dollars, except as otherwise
stated)
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
September 30,
2024
|
|
|
September 30,
2023
|
|
Financial &
Operating Metrics
|
|
Container
Vessels
|
|
Drybulk
Vessels
|
|
Other
|
|
Total
|
|
|
Container
Vessels
|
|
Drybulk
Vessels
|
|
Other
|
|
Total
|
|
Operating
Revenues
|
|
$235,570
|
|
$20,606
|
|
-
|
|
$256,176
|
|
|
$239,215
|
|
-
|
|
-
|
|
$239,215
|
|
Voyage Expenses, excl.
commissions
|
|
$757
|
|
$(8,019)
|
|
-
|
|
$(7,262)
|
|
|
$(479)
|
|
-
|
|
-
|
|
$(479)
|
|
Time Charter Equivalent
Revenues (1)
|
|
$236,327
|
|
$12,587
|
|
-
|
|
$248,914
|
|
|
$238,736
|
|
-
|
|
-
|
|
$238,736
|
|
Net
income/(loss)
|
|
$124,102
|
|
$62
|
|
$(1,168)
|
|
$122,996
|
|
|
$142,173
|
|
$(59)
|
|
$(8,958)
|
|
$133,156
|
|
Adjusted net income /
(loss) (2)
|
|
$125,143
|
|
$62
|
|
$1,640
|
|
$126,845
|
|
|
$142,647
|
|
$(59)
|
|
$375
|
|
$142,963
|
|
Earnings per share,
basic
|
|
|
|
|
|
|
|
$6.36
|
|
|
|
|
|
|
|
|
$6.76
|
|
Earnings per share,
diluted
|
|
|
|
|
|
|
|
$6.30
|
|
|
|
|
|
|
|
|
$6.76
|
|
Adjusted earnings per
share, diluted (2)
|
|
|
|
|
|
|
|
$6.50
|
|
|
|
|
|
|
|
|
$7.26
|
|
Operating
Days
|
|
6,387
|
|
778
|
|
-
|
|
|
|
|
6,115
|
|
-
|
|
-
|
|
|
|
Time Charter Equivalent
$/day (1)
|
|
$37,001
|
|
$16,179
|
|
-
|
|
|
|
|
$39,041
|
|
-
|
|
-
|
|
|
|
Ownership
days
|
|
6,540
|
|
913
|
|
-
|
|
|
|
|
6,256
|
|
-
|
|
-
|
|
|
|
Average number of
vessels
|
|
71.1
|
|
9.9
|
|
-
|
|
|
|
|
68.0
|
|
-
|
|
-
|
|
|
|
Fleet
Utilization
|
|
97.7 %
|
|
85.2 %
|
|
-
|
|
|
|
|
97.7 %
|
|
-
|
|
-
|
|
|
|
Adjusted EBITDA
(2)
|
|
$173,454
|
|
$3,826
|
|
$1,617
|
|
$178,897
|
|
|
$177,701
|
|
$(49)
|
|
$375
|
|
$178,027
|
|
Consolidated Balance
Sheet
& Leverage
Metrics
|
As of September
30,2024
|
|
|
|
|
|
|
As of December 31,
2023
|
|
Cash and cash
equivalents
|
|
|
|
$384,336
|
|
|
|
|
|
|
|
|
$271,809
|
|
Availability under
Revolving Credit Facility
|
|
|
|
$303,750
|
|
|
|
|
|
|
|
|
$337,500
|
|
Marketable
securities(3)
|
|
|
|
$96,423
|
|
|
|
|
|
|
|
|
-
|
|
Total cash liquidity
& marketable securities(4)
|
|
|
|
$784,509
|
|
|
|
|
|
|
|
|
$609,309
|
|
Debt, gross of deferred
finance costs
|
|
|
|
$689,476
|
|
|
|
|
|
|
|
|
$410,516
|
|
Net Debt
(5)
|
|
|
|
$305,140
|
|
|
|
|
|
|
|
|
$138,707
|
|
LTM Adjusted EBITDA
(6)
|
|
|
|
$705,497
|
|
|
|
|
|
|
|
|
$707,002
|
|
Net Debt / LTM Adjusted
EBITDA
|
|
|
|
0.43x
|
|
|
|
|
|
|
|
|
0.20x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Time charter
equivalent revenues and time charter equivalent US$/day are
non-GAAP measures. Refer to the reconciliation provided in the
appendix.
|
|
2. Adjusted net
income/(loss), adjusted earnings per share and adjusted EBITDA are
non-GAAP measures. Refer to the reconciliation of net income to
adjusted net income and adjusted earnings per share; and net income
to adjusted EBITDA provided below.
|
|
3. Marketable
securities refer to fair value of 4,070,214 shares of common stock
of SBLK on September 30, 2024.
|
|
4. Total cash liquidity
& marketable securities includes: (i) cash and cash
equivalents, (ii) availability under our Revolving Credit Facility
and (iii) marketable securities.
|
|
5. Net Debt is defined
as total debt gross of deferred finance costs less cash and cash
equivalents
|
|
6. Last twelve months
Adjusted EBITDA. Refer to the reconciliation provided
below.
|
|
For management purposes, the Company is organized based on
operating revenues generated from container vessels and dry-bulk
vessels and has two reporting segments: (1) a container vessels
segment and (2) a dry-bulk vessels segment. The Company measures
segment performance based on net income. Items included in the
applicable segment's net income are directly allocated to the
extent that the items are directly or indirectly attributable to
the segments. With regards to the items that are allocated by
indirect calculations, their allocation is commensurate to the
utilization of key resources. The Other column includes components
that are not allocated to any of the Company's reportable segments
and includes investments in an affiliate accounted for using the
equity method of accounting and investments in marketable
securities.
|
Financial
Summary
|
|
Nine Months Ended
September 30, 2024 and Nine Months Ended September 30,
2023
|
|
Unaudited
|
|
(Expressed in
thousands of United States dollars, except as otherwise
stated)
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September 30,
2024
|
|
|
September 30,
2023
|
|
Financial &
Operating Metrics
|
|
Container
Vessels
|
|
Drybulk
Vessels
|
|
Other
|
|
Total
|
|
|
Container
Vessels
|
|
Drybulk
Vessels
|
|
Other
|
|
Total
|
|
Operating
Revenues
|
|
$699,567
|
|
$56,364
|
|
-
|
|
$755,931
|
|
|
$724,268
|
|
-
|
|
-
|
|
$724,268
|
|
Voyage Expenses, excl.
commissions
|
|
$(179)
|
|
$(22,115)
|
|
-
|
|
$(22,294)
|
|
|
$(1,225)
|
|
-
|
|
-
|
|
$(1,225)
|
|
Time Charter Equivalent
Revenues (1)
|
|
$699,388
|
|
$34,249
|
|
-
|
|
$733,637
|
|
|
$723,043
|
|
-
|
|
-
|
|
$723,043
|
|
Net
income/(loss)
|
|
$396,144
|
|
$2,689
|
|
$15,813
|
|
$414,646
|
|
|
$432,283
|
|
$(59)
|
|
$(5,846)
|
|
$426,378
|
|
Adjusted net income /
(loss) (2)
|
|
$391,062
|
|
$2,689
|
|
$5,418
|
|
$399,169
|
|
|
$434,633
|
|
$(59)
|
|
$(2,951)
|
|
$431,623
|
|
Earnings per share,
basic
|
|
|
|
|
|
|
|
$21.41
|
|
|
|
|
|
|
|
|
$21.28
|
|
Earnings per share,
diluted
|
|
|
|
|
|
|
|
$21.22
|
|
|
|
|
|
|
|
|
$21.28
|
|
Adjusted earnings per
share, diluted (2)
|
|
|
|
|
|
|
|
$20.43
|
|
|
|
|
|
|
|
|
$21.54
|
|
Operating
Days
|
|
18,494
|
|
1,978
|
|
-
|
|
|
|
|
18,177
|
|
-
|
|
-
|
|
|
|
Time Charter Equivalent
$/day (1)
|
|
$37,817
|
|
$17,315
|
|
-
|
|
|
|
|
$39,778
|
|
-
|
|
-
|
|
|
|
Ownership
days
|
|
18,978
|
|
2,244
|
|
-
|
|
|
|
|
18,594
|
|
-
|
|
-
|
|
|
|
Average number of
vessels
|
|
69.3
|
|
8.2
|
|
-
|
|
|
|
|
68.1
|
|
-
|
|
-
|
|
|
|
Fleet
Utilization
|
|
97.4 %
|
|
88.1 %
|
|
-
|
|
|
|
|
97.8 %
|
|
-
|
|
-
|
|
|
|
Adjusted EBITDA
(2)
|
|
$516,763
|
|
$10,730
|
|
$5,395
|
|
$532,888
|
|
|
$537,393
|
|
$(49)
|
|
$(2,951)
|
|
$534,393
|
|
|
1. Time charter
equivalent revenues and time charter equivalent US$/day are
non-GAAP measures. Refer to the reconciliation provided in the
appendix.
|
|
2. Adjusted net
income/(loss), adjusted earnings per share and adjusted EBITDA are
non-GAAP measures. Refer to the reconciliation of net income to
adjusted net income and adjusted earnings per share; and net income
to adjusted EBITDA provided below.
|
|
- During the third quarter of 2024 and through the date of
this release, we took delivery of another 3 newbuilding
containerships, namely one 7,165 TEU vessel and two 8,010 TEU
vessels which have commenced their three-year charters. In total,
we have taken delivery of 6 newbuilding containerships in
2024.
- As a result, our remaining orderbook currently consists of a
further 14 newbuilding containership vessels with an aggregate
capacity of 115,834 TEU with expected deliveries of two vessels in
2025, three vessels in 2026, seven vessels in 2027 and two vessels
in 2028. All the vessels in our orderbook are designed with the
latest eco characteristics, will be methanol fuel ready, fitted
with open loop scrubbers and Alternative Maritime Power (AMP) units
and will be built in accordance with the latest requirements of the
International Maritime Organization (IMO) in relation to Tier III
emission standards and Energy Efficiency Design Index (EEDI) Phase
III.
- We have now secured multi-year charter arrangements for all
of the vessels in our newbuilding orderbook with an average charter
duration of approximately 4.8 years weighted by aggregate
contracted charter hire.
- Over the past two months, we added approximately
$308 million to our contracted
revenue backlog through a combination of new charters and charter
extensions for 16 of our container vessels.
- As a result, total contracted cash operating revenues, on
the basis of concluded charter contracts through the date of this
release, currently stand at $3.3
billion, including newbuildings. The remaining average
contracted charter duration for our containership fleet is 3.4
years, weighted by aggregate contracted charter hire.
- Contracted operating days charter coverage for our container
vessel fleet is currently 100% for 2024, 94% for 2025 and 73% for
2026. This includes newbuildings based on their scheduled delivery
dates.
- We took delivery of all of our contracted capesize drybulk
carriers by taking delivery of two vessels in the second quarter of
2024 and one vessel in July 2024. As
a result, our capesize drybulk fleet currently stands at 10 vessels
with an aggregate capacity of approximately 1.8 million
DWT.
- As of the date of this release, Danaos has repurchased a
total of 1,893,803 shares of its common stock in the open market
for $123.2 million under its
$200 million authorized share
repurchase program that was originally introduced in June 2022 and upsized in November 2023.
- Danaos has declared an increased dividend of $0.85 per share of common stock for the third
quarter of 2024, an increase of 6.25%. The dividend is payable on
December 4, 2024, to stockholders of
record as of November 25,
2024.
Danaos' CEO Dr. John Coustas
commented:
"The container market remained very strong in the third quarter
of 2024, allowing us to add over $300
million to our contracted charter backlog which presently
stands at $3.3 billion. Importantly,
all 14 of our newbuildings on order are fixed for 5 years, except
for two that are fixed for 2 years. We have excellent earnings
visibility as we have covered 100% of our container vessel
fleet operating days for 2024, 94% for 2025 and 73% for 2026.
The dry bulk market has been uncharacteristically soft lately,
which can be attributed to a disruption of seasonal patterns
throughout the year as well as a decrease in Chinese steel
production. Our dry bulk fleet performed reasonably well during the
quarter, and we are expecting freight rates to gradually improve as
we move into 2025.
Due to the certainty provided by the charter backlog in our
container segment, Danaos is insulated from the unstable and
unpredictable nature of the current global backdrop. The recent
U.S. Presidential election has introduced new uncertainty about
future policymaking and its effect in the shipping market. Most
notably, President Trump has openly declared his intention to
implement or increase trade tariffs that have the potential to
decrease container movements or at least will reshuffle trade
lanes. Additionally, it is likely that energy transition
initiatives will take place at a slower rate, and we don't know to
what extent existing IMO initiatives will be supported by the new
administration.
Danaos remains in a fortunate and enviable position. In addition
to our charter coverage, our balance sheet is a significant
strength. I am proud of the efforts we have undertaken, efforts
that have been acknowledged by Moody's, who upgraded Danaos to Ba1.
Together with the S&P credit rating at BB+, Danaos now holds
the highest grade assigned to a pure play shipping company. Our
creditworthiness will allow us to explore fully the U.S. bond
market, creating opportunity to raise competitively priced capital
to continue to opportunistically pursue growth opportunities.
Our continued strong financial performance and accompanying
strengthening of our balance sheet has enabled us to increase our
quarterly dividend to $0.85 per
share, in line with the commitment we have made to our
shareholders. We are also continuing to return value through
our share buyback program. We have now cumulatively bought
back stock worth $123 million and
have $77 million remaining under our
authorized share repurchase program.
We are continuing our efforts to increase the value of the
company while remaining vigilant about geopolitical risks to ensure
the long-term prosperity of Danaos for the benefit of our
shareholders."
Three months ended September 30,
2024 compared to the three months ended September 30, 2023
During the three months ended September
30, 2024, Danaos had an average of 71.1 container
vessels and 9.9 Capesize drybulk vessels compared to 68.0
container vessels and no drybulk vessels during the three months
ended September 30, 2023. Our
container vessels utilization remained stable at 97.7% in each
of the three months ended September
30, 2024 and September 30,
2023.
Our adjusted net income amounted to $126.8 million, or $6.50 per diluted share, for the three months
ended September 30, 2024 compared to
$143.0 million, or $7.26 per diluted share, for the three months
ended September 30, 2023. We have
adjusted our net income in the three months ended September 30, 2024 for a $2.8 million change in fair value of investments,
a $0.6 million non-cash finance fees
amortization and a $0.4 million loss
on vessel disposal.
Adjusted net income of our container vessels segment amounted to
$125.1 million for the three months
ended September 30, 2024 compared to
$142.6 million for the three months
ended September 30, 2023. We adjusted
net income of container vessels segment in the three months ended
September 30, 2024 for a $0.6 million non-cash finance fees amortization
and a $0.4 million loss on vessel
disposal.
Adjusted net income of our drybulk vessels segment amounted to
$0.1 million for the three months
ended September 30, 2024 compared to
$0.1 million adjusted net loss for
the three months ended September 30,
2023.
The $16.2 million decrease in
adjusted net income for the three months ended September 30, 2024 compared to the three months
ended September 30, 2023 is primarily
attributable to a $31.1 million
increase in total operating expenses, a $3.3
million increase in net finance expenses and a $0.7 million increase in equity loss on
investments, which were partially offset by a $17.0 million increase in operating revenues and
a $1.9 million increase in dividends
received.
Please refer to the Adjusted Net Income reconciliation tables,
which appear later in this earnings release.
On a non-adjusted basis, our net income amounted to $123.0 million, or $6.30 earnings per diluted share, for the three
months ended September 30, 2024
compared to net income of $133.2
million, or $6.76 earnings per
diluted share, for the three months ended September 30, 2023. On a non-adjusted basis, the
net income of our container vessels segment amounted to
$124.1 million and the net income of
our drybulk vessels segment amounted to $0.1
million for the three months ended September 30, 2024.
Operating Revenues
Operating revenues increased by
7.1%, or $17.0 million, to
$256.2 million in the three months
ended September 30, 2024 from
$239.2 million in the three months
ended September 30, 2023.
Operating revenues of our container vessels segment decreased by
1.5%, or $3.6 million, to
$235.6 million in the three months
ended September 30, 2024 from
$239.2 million in the three months
ended September 30, 2023, analyzed as
follows:
- a $14.0 million increase in
revenues in the three months ended September
30, 2024 compared to the three months ended September 30, 2023 as a result of vessel
additions;
- a $7.1 million increase in
revenues in the three months ended September
30, 2024 compared to the three months ended September 30, 2023 due to higher non-cash revenue
recognition in accordance with US GAAP;
- a $17.9 million decrease in
revenues in the three months ended September
30, 2024 compared to the three months ended September 30, 2023 as a result of lower charter
rates;
- a $2.4 million decrease in
revenues in the three months ended September
30, 2024 compared to the three months ended September 30, 2023 due to vessel disposals;
and
- a $4.4 million decrease in
revenues in the three months ended September
30, 2024 compared to the three months ended September 30, 2023 due to decreased amortization
of assumed time charters.
Operating revenues of our drybulk vessels segment added an
incremental $20.6 million of revenues
in the three months ended September 30,
2024 compared to no such operating revenues in the three
months ended September 30, 2023.
Vessel Operating Expenses
Vessel operating expenses
increased by $10.4 million to
$49.9 million in the three
months ended September 30, 2024 from
$39.5 million in the three
months ended September 30, 2023,
primarily as a result of the increase in the average number of
vessels in our fleet due to recent container vessel newbuilds
deliveries and drybulk vessels acquisitions and the increase in
average daily operating cost of our vessels to $6,860 per vessel per day for the three months
ended September 30, 2024 compared to
$6,499 per vessel per day for the
three months ended September 30,
2023. Management believes that our daily operating costs
remain among the most competitive in the industry.
Depreciation & Amortization
Depreciation &
Amortization includes Depreciation and Amortization of Deferred
Dry-docking and Special Survey Costs.
Depreciation
Depreciation expense increased by 19.8%,
or $6.4 million, to $38.7 million in the three months ended
September 30, 2024 from $32.3 million in the three months ended
September 30, 2023 mainly due to
depreciation expense related to 10 recently acquired Capesize
drybulk vessels and 5 recently delivered container newbuilds.
Amortization of Deferred Dry-docking and Special Survey
Costs
Amortization of deferred dry-docking and special
survey costs increased by $2.7
million to $7.5 million in the
three months ended September 30, 2024
from $4.8 million in the three months
ended September 30, 2023.
General and Administrative Expenses
General and
administrative expenses increased by $3.9
million, to $11.0 million in
the three months ended September 30,
2024 from $7.1 million in the
three months ended September 30,
2023. The increase was mainly attributable to increased
stock-based compensation and management fees.
Other Operating Expenses
Other Operating Expenses
include Voyage Expenses.
Voyage Expenses
Voyage expenses increased by
$8.0 million to $17.0 million in the three months ended
September 30, 2024 from $9.0 million in the three months ended
September 30, 2023 primarily as a
result of the $9.2 million in voyage
expenses related to our recently acquired 10 Capesize drybulk
vessels, which generated revenue partially from voyage charter
agreements, compared to no such expenses related to drybulk vessels
in the three months ended September 30,
2023.
Voyage expenses of container vessels segment decreased by
$1.2 million to $7.8 million in the three months ended
September 30, 2024 from $9.0 million in the three months ended
September 30, 2023.
Voyage expenses of drybulk vessels segment were $9.2 million in the three months ended
September 30, 2024 compared to no
voyage expenses in the three months ended September 30, 2023. Total voyage expenses of
drybulk vessels comprised $1.2
million commissions and $8.0
million other voyage expenses, mainly bunkers consumption
and port expenses, in the three months ended September 30, 2024.
Net gain on disposal/sale of vessels
In March 2024, we sold for scrap the vessel
Stride, which had been off-hire since January 8, 2024 due to damage from a fire in the
engine room that was subsequently contained. We collected
$9.9 million net insurance proceeds
for total loss of vessel and recognized a gain on disposal of this
vessel amounting to $7.1 million in
the six months ended June 30, 2024.
In the three months ended September 30,
2024, we recognized $0.4
million of expenses related to this vessel disposal, which
reduced the total gain to $6.7
million in the nine months ended September 30, 2024. The proceedings with the
insurers are in progress as of September 30,
2024, and any additional gain will be recognized upon their
finalization.
Interest Expense and Interest Income
Interest expense
increased by $3.7 million, to
$8.0 million in the three months
ended September 30, 2024 from
$4.3 million in the three months
ended September 30, 2023. The
increase in interest expense is a result of:
- a $4.2 million increase in
interest expense due to an increase in our average indebtedness by
$224.7 million between the two
periods, which was partially offset by a decrease in our debt
service cost by approximately 0.26%, mainly as a result of a
reduction in the financing margin cost. Average indebtedness was
$646.8 million in the three months
ended September 30, 2024, compared to
average indebtedness of $422.1
million in the three months ended September 30, 2023;
- a $0.1 million increase in the
amortization of deferred finance costs; which were partially offset
by
- a $0.6 million decrease in
interest expense due to an increase in capitalized interest expense
on our vessels under construction in the three months ended
September 30, 2024.
As of September 30, 2024, our
outstanding debt, gross of deferred finance costs, was $689.5 million, which included $262.8 million principal amount of our Senior
Notes. These balances compare to debt of $417.4 million, which included $262.8 million principal amount of our Senior
Notes as of September 30, 2023. The
increase in our outstanding debt is mainly due to loans drawn down
to partially finance our container vessel newbuildings.
Interest income remained stable at $3.1
million in each of the three months ended September 30, 2024 and September 30, 2023.
Gain/(loss) on investments
Following the all-stock
merger of Eagle Bulk Shipping Inc. with Star Bulk Carriers Corp.
("SBLK") completed on April 9, 2024,
we currently own 4,070,214 shares of common stock of SBLK. The
$41 thousand gain on investments in
the three months ended September 30,
2024 consisted of the $2.8
million fair value loss on these marketable securities,
which was offset by the dividends recognized on these shares of
$2.8 million. This compares to a
$8.4 million loss on marketable
securities in the three months ended September 30, 2023.
Equity loss on investments
Equity loss on investments
amounting to $1.2 million and
$0.5 million in the three months
September 30, 2024 and September 30, 2023, respectively, relates to our
share of initial expenses of Carbon Termination Technologies
Corporation ("CTTC"), currently engaged in the research and
development of decarbonization technologies for the shipping
industry.
Other finance expenses
Other finance expenses
decreased by $0.3 million to
$0.9 million in the three months
ended September 30, 2024 compared to
$1.2 million in the three months
ended September 30, 2023.
Loss on derivatives
Amortization of deferred realized
losses on interest rate swaps remained stable at $0.9 million in each of the three months ended
September 30, 2024 and September 30, 2023.
Other income/(expenses), net
Other expenses, net
amounted to $0.7 million in the three
months ended September 30, 2024
compared to $1.1 million other
income, net in the three months ended September 30, 2023.
Adjusted EBITDA
Adjusted EBITDA increased by 0.5%, or
$0.9 million, to $178.9 million in the three months ended
September 30, 2024 from $178.0 million in the three months ended
September 30, 2023. As outlined
above, the increase is mainly attributable to $21.4 million increase in operating revenues and
a $1.9 million increase in dividends
received, which were partially offset by a $21.7 million increase in total operating
expenses and a $0.7 million increase
in equity loss on investments. Adjusted EBITDA for the three months
ended September 30, 2024 is adjusted
for a $2.8 million change in fair
value of investments and a $0.4
million loss on disposal of vessel. Tables reconciling
Adjusted EBITDA to Net Income can be found at the end of this
earnings release.
Adjusted EBITDA of container vessels segment decreased by 2.4%,
or $4.2 million, to $173.5 million in the three months ended
September 30, 2024 from $177.7 million in the three months ended
September 30, 2023.
Adjusted EBITDA of drybulk vessels segment was $3.8 million in the three months ended
September 30, 2024. We had just
started to be engaged in the drybulk vessels segment and did not
have significant expenses in the three months ended September 30, 2023.
Nine months ended September 30,
2024 compared to the nine months ended September 30, 2023
During the nine months ended September
30, 2024, Danaos had an average of 69.3 container
vessels and 8.2 Capesize drybulk vessels compared to 68.1
container vessels and no drybulk vessels during the nine months
ended September 30, 2023. Our
container vessels utilization for the nine months ended
September 30, 2024 was 97.4% compared
to 97.8% for the nine months ended September
30, 2023.
Our adjusted net income amounted to $399.2 million, or $20.43 per diluted share, for the nine months
ended September 30, 2024 compared to
$431.6 million, or $21.54 per diluted share, for the nine months
ended September 30, 2023. We have
adjusted our net income in the nine months ended September 30, 2024 for a $10.4 million change in fair value of
investments, a $6.7 million gain on
vessel disposal and a $1.6 million
non-cash finance fees amortization.
Adjusted net income of our container vessels segment amounted to
$391.1 million for the nine months
ended September 30, 2024 compared to
$434.6 million for the nine months
ended September 30, 2023. We adjusted
net income of container vessels segment in the nine months ended
September 30, 2024 for a $6.7 million gain on vessel disposal and a
$1.6 million non-cash finance fees
amortization.
Adjusted net income of our drybulk vessels segment amounted to
$2.7 million for the nine months
ended September 30, 2024 compared to
$0.1 million adjusted net loss for
the nine months ended September 30,
2023, as we just started to be engaged in the drybulk
vessels segment during that period.
The $32.4 million decrease in
adjusted net income for the nine months ended September 30, 2024 compared to the nine months
ended September 30, 2023 is primarily
attributable to a $73.1 million
increase in total operating expenses, which was partially offset by
a $31.7 million increase in operating
revenues, a $5.9 million increase in
dividends received, a $0.7 million
decrease in net finance expenses and a $2.4
million decrease in equity loss on investments.
Please refer to the Adjusted Net Income reconciliation tables,
which appear later in this earnings release.
On a non-adjusted basis, our net income amounted to $414.6 million, or $21.22 earnings per diluted share, for the nine
months ended September 30, 2024
compared to net income of $426.4
million, or $21.28 earnings
per diluted share, for the nine months ended September 30, 2023. On a non-adjusted basis, the
net income of our container vessels segment amounted to
$396.2 million and the net income of
our drybulk vessels segment amounted to $2.7
million for the nine months ended September 30, 2024.
Operating Revenues
Operating revenues increased by
4.4%, or $31.6 million, to
$755.9 million in the nine months
ended September 30, 2024 from
$724.3 million in the nine months
ended September 30, 2023.
Operating revenues of our container vessels segment decreased by
3.4%, or $24.7 million, to
$699.6 million in the nine months
ended September 30, 2024 from
$724.3 million in the nine months
ended September 30, 2023, analyzed as
follows:
- a $18.9 million increase in
revenues in the nine months ended September
30, 2024 compared to the nine months ended September 30, 2023 as a result of vessel
additions;
- a $20.5 million decrease in
revenues in the nine months ended September
30, 2024 compared to the nine months ended September 30, 2023 mainly as a result of lower
charter rates and decreased vessel utilization;
- a $7.5 million decrease in
revenues in the nine months ended September
30, 2024 compared to the nine months ended September 30, 2023 due to vessel disposals;
- a $12.3 million decrease in
revenues in the nine months ended September
30, 2024 compared to the nine months ended September 30, 2023 due to decreased amortization
of assumed time charters; and
- a $3.3 million decrease in
revenues in the nine months ended September
30, 2024 compared to the nine months ended September 30, 2023 due to lower non-cash revenue
recognition in accordance with US GAAP.
Operating revenues of our drybulk vessels segment added an
incremental $56.3 million of revenues
in the nine months ended September 30,
2024 compared to no such operating revenues in the nine
months ended September 30, 2023.
Vessel Operating Expenses
Vessel operating expenses
increased by $18.1 million to
$140.1 million in the nine
months ended September 30, 2024 from
$122.0 million in the nine
months ended September 30, 2023,
primarily as a result of the increase in the average number of
vessels in our fleet due to recent container vessel newbuilds and
dry bulk vessels acquisitions, while the average daily operating
cost of our vessels remained stable at $6,775 per vessel per day for the nine months
ended September 30, 2024 compared to
$6,758 per vessel per day for the
nine months ended September 30, 2023.
Management believes that our daily operating costs remain among the
most competitive in the industry.
Depreciation & Amortization
Depreciation &
Amortization includes Depreciation and Amortization of Deferred
Dry-docking and Special Survey Costs.
Depreciation
Depreciation expense increased by 12.7%,
or $12.2 million, to $108.0 million in the nine months ended
September 30, 2024 from $95.8 million in the nine months ended
September 30, 2023 mainly due to
depreciation expense related to 10 recently acquired Capesize
drybulk vessels and 5 recently delivered container vessel
newbuilds.
Amortization of Deferred Dry-docking and Special Survey
Costs
Amortization of deferred dry-docking and special
survey costs increased by $6.8
million to $19.9 million in
the nine months ended September 30,
2024 from $13.1 million in the
nine months ended September 30,
2023.
General and Administrative Expenses
General and
administrative expenses increased by $11.4
million, to $32.5 million in
the nine months ended September 30,
2024 from $21.1 million in the
nine months ended September 30, 2023.
The increase was mainly attributable to increased stock-based
compensation and management fees.
Other Operating Expenses
Other Operating Expenses
include Voyage Expenses.
Voyage Expenses
Voyage expenses increased by
$24.8 million to $50.0 million in the nine months ended
September 30, 2024 from $25.2 million in the nine months ended
September 30, 2023 primarily as a
result of the $25.5 million in voyage
expenses related to our recently acquired 10 Capesize drybulk
vessels, which generated revenue partially from voyage charter
agreements, compared to no such expenses related to drybulk vessels
in the nine months ended September 30,
2023.
Voyage expenses of container vessels segment decreased by
$0.7 million to $24.5 million in the nine months ended
September 30, 2024 from $25.2 million in the nine months ended
September 30, 2023 mainly due to
decreased other voyage expenses. Total voyage expenses of container
vessels comprised $24.3 million
commissions and $0.2 million other
voyage expenses in the nine months ended September 30, 2024.
Voyage expenses of drybulk vessels segment were $25.5 million in the nine months ended
September 30, 2024 compared to no
voyage expenses in the nine months ended September 30, 2023. Total voyage expenses of
drybulk vessels comprised $3.4
million commissions and $22.1
million other voyage expenses, mainly bunkers consumption
and port expenses, in the nine months ended September 30, 2024.
Net gain on disposal/sale of vessels
In March 2024, we sold for scrap the vessel
Stride, which had been off-hire since January 8, 2024 due to damage from a fire in the
engine room that was subsequently contained. We collected
$9.9 million net insurance proceeds
for total loss of vessel and recognized a gain on disposal of this
vessel amounting to $7.1 million in
the six months ended June 30, 2024.
In the three months ended September 30,
2024, we recognized $0.4
million expenses related to this vessel disposal, which
reduced the total gain to $6.7
million in the nine months ended September 30, 2024. The proceedings with the
insurers are in progress as of September 30,
2024, and any additional gain will be recognized upon their
finalization.
In January 2023, we completed the
sale of the container vessel Amalia C for net proceeds of
$4.9 million resulting in a gain of
$1.6 million.
Interest Expense and Interest Income
Interest expense
decreased by $0.7 million, to
$16.2 million in the nine months
ended September 30, 2024 from
$16.9 million in the nine months
ended September 30, 2023. The
decrease in interest expense is a result of:
- a $4.8 million decrease in
interest expense due to an increase in capitalized interest expense
on our vessels under construction in the nine months ended
September 30, 2024; and
- a $0.2 million decrease in the
amortization of deferred finance costs; which were partially offset
by
- a $4.3 million increase in
interest expense due to an increase in our debt service cost by
approximately 0.15% as a result of higher SOFR rates, partially
offset by a reduction in our financing margin cost, and by an
increase in our average indebtedness by $61.7 million between the two periods. Average
indebtedness was $524.6 million in
the nine months ended September 30,
2024, compared to average indebtedness of $462.9 million in the nine months ended
September 30, 2023.
As of September 30, 2024, our
outstanding debt, gross of deferred finance costs, was $689.5 million, which included $262.8 million principal amount of our Senior
Notes. These balances compare to debt of $417.4 million, which included $262.8 million principal amount of our Senior
Notes as of September 30, 2023. The
increase in our outstanding debt is mainly due to loans drawn down
to partially finance our container vessel newbuildings.
Interest income decreased by $0.4
million to $9.0 million in the
nine months ended September 30, 2024
compared to $9.4 million in the nine
months ended September 30, 2023.
Gain/(loss) on investments
Following the all-stock
merger of Eagle Bulk Shipping Inc. with Star Bulk Carriers Corp.
("SBLK") completed on April 9, 2024,
we currently own 4,070,214 shares of common stock of SBLK. The gain
on investments of $17.2 million in
the nine months ended September 30,
2024 consisted of the change in fair value of these
marketable securities of $10.4
million and dividends recognized on these shares of
$6.8 million. This compares to a
$2.0 million loss on marketable
securities in the nine months ended September 30, 2023.
Loss on debt extinguishment
A $2.3 million loss on early extinguishment of our
leaseback obligations in the nine months ended September 30, 2023 compares to no such loss in
the nine months ended September 30,
2024.
Equity loss on investments
Equity loss on investments
amounting to $1.4 million and
$3.9 million in the nine months
September 30, 2024 and September 30, 2023, respectively, relates to our
share of initial expenses of CTTC, currently engaged in the
research and development of decarbonization technologies for the
shipping industry.
Other finance expenses
Other finance expenses
decreased by $0.7 million to
$2.7 million in the nine months ended
September 30, 2024 compared to
$3.4 million in the nine months ended
September 30, 2023.
Loss on derivatives
Amortization of deferred realized
losses on interest rate swaps remained stable at $2.7 million in each of the nine months ended
September 30, 2024 and September 30, 2023.
Other income/(expenses), net
Other expenses, net
amounted to $0.6 million in each of
the nine months ended September 30,
2024 and September 30,
2023.
Adjusted EBITDA
Adjusted EBITDA decreased by 0.3%, or
$1.5 million, to $532.9 million in the nine months ended
September 30, 2024 from $534.4 million in the nine months ended
September 30, 2023. As outlined
above, the decrease is mainly attributable to a $53.7 million increase in total operating
expenses, which were partially offset by a $43.9 million increase in operating revenues, a
$5.9 million increase in dividends
received and a $2.4 million decrease
in equity loss on investments. Adjusted EBITDA for the nine months
ended September 30, 2024 is adjusted
for a $10.4 million change in fair
value of investments and a $6.7
million net gain on disposal of vessel. Tables reconciling
Adjusted EBITDA to Net Income can be found at the end of this
earnings release.
Adjusted EBITDA of container vessels segment decreased by 3.8%,
or $20.6 million, to $516.8 million in the nine months ended
September 30, 2024 from $537.4 million in the nine months ended
September 30, 2023.
Adjusted EBITDA of drybulk vessels segment was $10.7 million in the nine months ended
September 30, 2024. We had just
started to be engaged in the drybulk vessels segment and did not
have significant expenses in the nine months ended September 30, 2023.
Dividend Payment
Danaos has declared a dividend of
$0.85 per share of common stock for
the third quarter of 2024, which is payable on December 4, 2024 to stockholders of record as of
November 25, 2024.
Recent Developments
In October
2024 and through November 7,
2024, we repurchased 210,422 shares of our common stock in
the open market for $17.8
million.
In October 2024, we took delivery
of our 6th newbuilding containership the
Greenfield, which was deployed on a three-year time
charter.
Conference Call and Webcast
On Wednesday, November 12, 2024 at 9:00 A.M. ET, the Company's management will host
a conference call to discuss the results.
Participants should dial into the call 10 minutes before the
scheduled time using the following numbers: 1 844 802 2437 (US Toll
Free Dial In), 0800 279 948 9 (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 November 19, 2024 by dialing 1
877 344 7529 (US Toll Free Dial In) or 1-412-317-0088 (Standard
International Dial In) and using 8988845# as the access code.
Audio Webcast
There will also be a live and then
archived webcast of the conference call on the Danaos website
(www.danaos.com). Participants of the live webcast should register
on the website approximately 10 minutes prior to the start of the
webcast.
Slide Presentation
A slide presentation regarding the
Company and the container and drybulk industry will also be
available on the Danaos website (www.danaos.com).
About Danaos Corporation
Danaos Corporation is one of
the largest independent owners of modern, large-size container
vessels. Our current fleet of 73 container vessels aggregating
465,463 TEUs and 14 under construction container vessels
aggregating 115,834 TEUs ranks Danaos among the largest
container vessels charter owners in the world based on total TEU
capacity. Danaos has also recently invested in the drybulk sector
with the acquisition of 10 capesize drybulk vessels aggregating
1,760,861 DWT. Our container vessels fleet is chartered to many of
the world's largest liner companies on fixed-rate charters. Our
long track record of success is predicated on our efficient and
rigorous operational standards and environmental controls. Danaos
Corporation's shares trade on the New York Stock Exchange under the
symbol "DAC".
Forward-Looking Statements
Matters discussed in this
release may constitute forward-looking statements within the
meaning of the safe harbor provisions of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements reflect our current views
with respect to future events and financial performance and may
include statements concerning plans, objectives, goals, strategies,
future events or performance, and underlying assumptions and other
statements, which are other than statements of historical facts.
The forward-looking statements in this release are based upon
various assumptions. Although Danaos Corporation believes that
these assumptions were reasonable when made, because these
assumptions are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond our control, Danaos Corporation cannot assure you that it
will achieve or accomplish these expectations, beliefs or
projections. Important factors that, in our view, could cause
actual results to differ materially from those discussed in the
forward-looking statements include the strength of world economies
and currencies, general market conditions, including changes in
charter hire rates and vessel values, charter counterparty
performance, changes in demand that may affect attitudes of time
charterers to scheduled and unscheduled drydocking, changes in
Danaos Corporation's operating expenses, including bunker prices,
drydocking and insurance costs, our ability to operate profitably
in the drybulk sector, performance of shipyards constructing
our contracted newbuilding vessels, ability to obtain
financing and comply with covenants in our financing arrangements,
actions taken by regulatory authorities, potential liability from
pending or future litigation, domestic and international political
conditions, including the conflict in Ukraine and related sanctions, the conflict in
Israel and the Gaza Strip, potential disruption of shipping
routes such as Houthi attacks in the Red Sea and the Gulf of Aden,
due to accidents and political events or acts by
terrorists.
Risks and uncertainties are further described in reports filed
by Danaos Corporation with the U.S. Securities and Exchange
Commission.
Visit our website at www.danaos.com
APPENDIX
|
Container vessels
fleet utilization
|
|
|
|
|
|
|
|
|
|
Vessel Utilization
(No. of Days)
|
|
Three months
ended
|
|
Three months
ended
|
|
Nine months
ended
|
|
Nine months
ended
|
|
September
30,
|
September
30,
|
|
September
30,
|
September
30,
|
|
2024
|
2023
|
|
2024
|
2023
|
|
Ownership
Days
|
|
6,540
|
|
6,256
|
|
18,978
|
|
18,594
|
|
Less Off-hire
Days:
|
|
|
|
|
|
|
|
|
|
Scheduled Off-hire
Days
|
|
(127)
|
|
(119)
|
|
(289)
|
|
(349)
|
|
Other Off-hire
Days
|
|
(26)
|
|
(22)
|
|
(195)
|
|
(68)
|
|
Operating
Days(1)
|
|
6,387
|
|
6,115
|
|
18,494
|
|
18,177
|
|
Vessel
Utilization
|
|
97.7 %
|
|
97.7 %
|
|
97.4 %
|
|
97.8 %
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
(in '000s of US$)
|
|
$235,570
|
|
$239,215
|
|
$699,567
|
|
$724,268
|
|
Less: Voyage
Expenses excluding commissions (in '000s of US$)
|
|
757
|
|
(479)
|
|
(179)
|
|
(1,225)
|
|
Time Charter
Equivalent Revenues (in '000s of US$)
|
|
236,327
|
|
238,736
|
|
699,388
|
|
723,043
|
|
Time Charter
Equivalent US$/per day(2)
|
|
$37,001
|
|
$39,041
|
|
$37,817
|
|
$39,778
|
|
|
|
|
|
|
|
|
|
|
Drybulk vessels
fleet utilization
|
|
|
|
|
|
|
|
|
|
Vessel Utilization
(No. of Days)
|
|
Three months
ended
|
|
Three months
ended
|
|
Nine months
ended
|
|
Nine months
ended
|
|
September
30,
|
September
30,
|
|
September
30,
|
September
30,
|
|
2024
|
2023
|
|
2024
|
2023
|
|
Ownership
Days
|
|
913
|
|
5
|
|
2,244
|
|
5
|
|
Less Off-hire
Days:
|
|
|
|
|
|
|
|
|
|
Scheduled Off-hire
Days
|
|
(119)
|
|
(5)
|
|
(240)
|
|
(5)
|
|
Other Off-hire
Days
|
|
(16)
|
|
-
|
|
(26)
|
|
-
|
|
Operating
Days(1)
|
|
778
|
|
-
|
|
1,978
|
|
-
|
|
Vessel
Utilization
|
|
85.2 %
|
|
-
|
|
88.1 %
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues
(in '000s of US$)
|
|
$20,606
|
|
-
|
|
$56,364
|
|
-
|
|
Less: Voyage
Expenses excluding commissions (in '000s of US$)
|
|
(8,019)
|
|
-
|
|
(22,115)
|
|
-
|
|
Time Charter
Equivalent Revenues (in '000s of US$)
|
|
12,587
|
|
-
|
|
34,249
|
|
-
|
|
Time Charter
Equivalent US$/per day(2)
|
|
$16,179
|
|
-
|
|
$17,315
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
We define Operating
Days as the total number of Ownership Days net of Scheduled
off-hire days (days associated with scheduled repairs, drydockings
or special or intermediate surveys or days) and net of off-hire
days associated with unscheduled repairs or days waiting to find
employment but including days our vessels were sailing for
repositioning. The shipping industry uses Operating Days to measure
the number of days in a period during which vessels actually
generate revenues or are sailing for repositioning purposes. Our
definition of Operating Days may not be comparable to that used by
other companies in the shipping industry.
|
|
2)
|
Time charter equivalent
US$/per day ("TCE rate") represents the average daily TCE rate of
our container vessels segment and drybulk vessels segment
calculated dividing time charter equivalent revenues of each
segment by operating days of each segment. TCE rate is a standard
shipping industry performance measure used primarily to compare
period to period changes in a shipping company's performance
despite changes in the mix of charter types i.e., voyage charters,
time charters, bareboat charters under which its vessels may be
employed between the periods. Our method of computing TCE rate may
not necessarily be comparable to TCE rates of other companies due
to differences in methods of calculation. We include TCE rate, a
non- GAAP measure, as it provides additional meaningful information
in conjunction with operating revenues, the most directly
comparable GAAP measure, and it assists our management in making
decisions regarding the deployment and use of our operating vessels
and assists investors and our management in evaluating our
financial performance.
|
|
|
Fleet List
The following table describes in detail our container vessels
deployment profile as of November 7, 2024:
|
Vessel
Name
|
Vessel
Size
(TEU) (1)
|
|
Year
Built
|
|
Expiration of
Charter(2)
|
|
Ambition (ex Hyundai
Ambition)
|
13,100
|
|
2012
|
|
April 2027
|
|
Speed (ex Hyundai
Speed)
|
13,100
|
|
2012
|
|
March 2027
|
|
Kota Plumbago (ex
Hyundai Smart)
|
13,100
|
|
2012
|
|
July 2027
|
|
Kota Primrose (ex
Hyundai Respect)
|
13,100
|
|
2012
|
|
April 2027
|
|
Kota Peony (ex
Hyundai Honour)
|
13,100
|
|
2012
|
|
March 2027
|
|
Express
Rome
|
10,100
|
|
2011
|
|
May 2027
|
|
Express
Berlin
|
10,100
|
|
2011
|
|
August 2026
|
|
Express
Athens
|
10,100
|
|
2011
|
|
May 2027
|
|
Le
Havre
|
9,580
|
|
2006
|
|
June 2028
|
|
Pusan
C
|
9,580
|
|
2006
|
|
May 2028
|
|
Bremen
|
9,012
|
|
2009
|
|
January 2028
|
|
C
Hamburg
|
9,012
|
|
2009
|
|
January 2028
|
|
Niledutch
Lion
|
8,626
|
|
2008
|
|
May 2026
|
|
Kota
Manzanillo
|
8,533
|
|
2005
|
|
February
2026
|
|
Belita
|
8,533
|
|
2006
|
|
July 2026
|
|
CMA CGM
Melisande
|
8,530
|
|
2012
|
|
January 2028
|
|
CMA CGM
Attila
|
8,530
|
|
2011
|
|
May 2027
|
|
CMA CGM
Tancredi
|
8,530
|
|
2011
|
|
July 2027
|
|
CMA CGM
Bianca
|
8,530
|
|
2011
|
|
September
2027
|
|
CMA CGM
Samson
|
8,530
|
|
2011
|
|
November
2027
|
|
America
|
8,468
|
|
2004
|
|
April 2028
|
|
Europe
|
8,468
|
|
2004
|
|
May 2028
|
|
Kota
Santos
|
8,463
|
|
2005
|
|
August 2026
|
|
Catherine
C(3)
|
8,010
|
|
2024
|
|
May 2027
|
|
Greenland(3)
|
8,010
|
|
2024
|
|
June 2027
|
|
Greenville(4)
|
8,010
|
|
2024
|
|
August 2027
|
|
Greenfield(5)
|
8,010
|
|
2024
|
|
October 2027
|
|
Interasia
Accelerate(3)
|
7,165
|
|
2024
|
|
April 2027
|
|
Interasia
Amplify(4)
|
7,165
|
|
2024
|
|
September
2027
|
|
CMA CGM
Moliere
|
6,500
|
|
2009
|
|
March 2027
|
|
CMA CGM
Musset
|
6,500
|
|
2010
|
|
September
2025
|
|
CMA CGM
Nerval
|
6,500
|
|
2010
|
|
November
2025
|
|
CMA CGM
Rabelais
|
6,500
|
|
2010
|
|
January 2026
|
|
Racine
|
6,500
|
|
2010
|
|
April 2026
|
|
YM
Mandate
|
6,500
|
|
2010
|
|
January 2028
|
|
YM
Maturity
|
6,500
|
|
2010
|
|
April 2028
|
|
Savannah (ex
Zim Savannah)
|
6,402
|
|
2002
|
|
June 2027
|
|
Dimitra
C
|
6,402
|
|
2002
|
|
April 2027
|
|
Suez
Canal
|
5,610
|
|
2002
|
|
April 2026
|
|
Kota
Lima
|
5,544
|
|
2002
|
|
September
2025
|
|
Wide
Alpha
|
5,466
|
|
2014
|
|
July 2027
|
|
Stephanie
C
|
5,466
|
|
2014
|
|
May 2028
|
|
Euphrates (ex
Maersk Euphrates)
|
5,466
|
|
2014
|
|
September
2028
|
|
Wide
Hotel
|
5,466
|
|
2015
|
|
September
2027
|
|
Wide
India
|
5,466
|
|
2015
|
|
October 2028
|
|
Wide
Juliet
|
5,466
|
|
2015
|
|
September
2025
|
|
Seattle
C
|
4,253
|
|
2007
|
|
October 2026
|
|
Vancouver
|
4,253
|
|
2007
|
|
November
2026
|
|
Derby
D
|
4,253
|
|
2004
|
|
January 2027
|
|
Tongala
|
4,253
|
|
2004
|
|
December
2026
|
|
Rio
Grande
|
4,253
|
|
2008
|
|
November
2026
|
|
Merve
A
|
4,253
|
|
2008
|
|
September
2025
|
|
Kingston
|
4,253
|
|
2008
|
|
June 2027
|
|
Monaco (ex ZIM
Monaco)
|
4,253
|
|
2009
|
|
September
2026
|
|
Dalian
|
4,253
|
|
2009
|
|
March 2026
|
|
ZIM
Luanda
|
4,253
|
|
2009
|
|
August 2025
|
|
Dimitris
C
|
3,430
|
|
2001
|
|
September
2027
|
|
Express Black
Sea
|
3,400
|
|
2011
|
|
January 2027
|
|
Express
Spain
|
3,400
|
|
2011
|
|
January 2027
|
|
Express
Argentina
|
3,400
|
|
2010
|
|
December
2026
|
|
Express
Brazil
|
3,400
|
|
2010
|
|
April 2027
|
|
Express
France
|
3,400
|
|
2010
|
|
July 2027
|
|
Singapore
|
3,314
|
|
2004
|
|
March 2027
|
|
Colombo
|
3,314
|
|
2004
|
|
January 2027
|
|
Zebra
|
2,602
|
|
2001
|
|
November
2025
|
|
Artotina
|
2,524
|
|
2001
|
|
January 2026
|
|
Advance
|
2,200
|
|
1997
|
|
June 2026
|
|
Future
|
2,200
|
|
1997
|
|
May 2026
|
|
Sprinter
|
2,200
|
|
1997
|
|
May 2026
|
|
Bridge
|
2,200
|
|
1998
|
|
December
2024
|
|
Progress
C
|
2,200
|
|
1998
|
|
April 2026
|
|
Phoenix
D
|
2,200
|
|
1997
|
|
March 2025
|
|
Highway
|
2,200
|
|
1998
|
|
February
2025
|
|
|
|
(1)
|
Twenty-feet equivalent
unit, the international standard measure for containers and
container vessels capacity.
|
|
(2)
|
Earliest date charters
could expire. Some charters include options for the charterer to
extend their terms.
|
|
(3)
|
The newbuilding vessels
were delivered in the second quarter of 2024.
|
|
(4)
|
The newbuilding vessels
were delivered in the third quarter of 2024.
|
|
(5)
|
The newbuilding vessel
was delivered in October 2024.
|
|
Container vessels under
construction as of November 7, 2024:
|
|
Hull
Number
|
Vessel
Size
(TEU)
|
|
Expected Delivery
Year
|
|
|
Minimum Charter
Duration
|
|
Hull No.
CV5900-07
|
6,014
|
|
2025
|
|
|
2 Years
|
|
Hull No.
CV5900-08
|
6,014
|
|
2025
|
|
|
2 Years
|
|
Hull No.
YZJ2023-1556
|
8,258
|
|
2026
|
|
|
5 Years
|
|
Hull No.
YZJ2023-1557
|
8,258
|
|
2026
|
|
|
5 Years
|
|
Hull No.
YZJ2024-1612
|
8,258
|
|
2026
|
|
|
5 Years
|
|
Hull No.
YZJ2024-1613
|
8,258
|
|
2027
|
|
|
5 Years
|
|
Hull No.
YZJ2024-1625
|
8,258
|
|
2027
|
|
|
5 Years
|
|
Hull No.
YZJ2024-1626
|
8,258
|
|
2027
|
|
|
5 Years
|
|
Hull No.
YZJ2024-1668
|
8,258
|
|
2027
|
|
|
5 Years
|
|
Hull No.
C9200-7
|
9,200
|
|
2027
|
|
|
4.8 Years
|
|
Hull No.
C9200-8
|
9,200
|
|
2027
|
|
|
4.8 Years
|
|
Hull No.
C9200-9
|
9,200
|
|
2027
|
|
|
4.8 Years
|
|
Hull No.
C9200-10
|
9,200
|
|
2028
|
|
|
4.8 Years
|
|
Hull No.
C9200-11
|
9,200
|
|
2028
|
|
|
4.8 Years
|
|
The following table
describes the details of our Capesize drybulk vessels as of
November 7, 2024:
|
|
Vessel
Name
|
Capacity
(DWT) (1)
|
|
Year
Built
|
|
|
Achievement
|
175,966
|
|
2011
|
|
|
Genius
|
175,580
|
|
2012
|
|
|
Ingenuity
|
176,022
|
|
2011
|
|
|
Integrity
|
175,966
|
|
2010
|
|
|
Peace
|
175,858
|
|
2010
|
|
|
W
Trader
|
175,879
|
|
2009
|
|
|
E
Trader
|
175,886
|
|
2009
|
|
|
Gouverneur (ex Xin
Hang) (2)
|
178,043
|
|
2010
|
|
|
Valentine (ex Star
Audrey) (2)
|
175,125
|
|
2011
|
|
|
Danaos (ex Guo
May) (3)
|
176,536
|
|
2011
|
|
|
|
|
(1)
|
DWT, dead weight tons,
the international standard measure for drybulk vessels
capacity.
|
|
(2)
|
The vessels were
delivered in the second quarter of 2024.
|
|
(3)
|
The vessel was
delivered in July 2024.
|
|
|
|
DANAOS
CORPORATION
|
|
Condensed
Consolidated Statements of Income - Unaudited
|
|
(Expressed in
thousands of United States dollars, except per share
amounts)
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Nine months
ended
|
|
Nine months
ended
|
|
September
30,
|
September
30,
|
September
30,
|
September
30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
OPERATING
REVENUES
|
$256,176
|
|
$239,215
|
|
$755,931
|
|
$724,268
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Vessel operating
expenses
|
(49,866)
|
|
(39,494)
|
|
(140,070)
|
|
(121,994)
|
|
Depreciation &
amortization
|
(46,211)
|
|
(37,097)
|
|
(127,878)
|
|
(108,873)
|
|
General &
administrative
|
(10,978)
|
|
(7,070)
|
|
(32,519)
|
|
(21,107)
|
|
Other operating
expenses
|
(16,999)
|
|
(8,959)
|
|
(50,019)
|
|
(25,241)
|
|
Net gain/(loss) on
disposal/sale of vessels
|
(443)
|
|
-
|
|
6,651
|
|
1,639
|
|
Income From
Operations
|
131,679
|
|
146,595
|
|
412,096
|
|
448,692
|
|
OTHER
INCOME/(EXPENSES)
|
|
|
|
|
|
|
|
|
Interest
income
|
3,124
|
|
3,091
|
|
8,983
|
|
9,410
|
|
Interest
expense
|
(8,013)
|
|
(4,306)
|
|
(16,243)
|
|
(16,909)
|
|
Gain/(loss) on
investments
|
41
|
|
(8,432)
|
|
17,228
|
|
(1,994)
|
|
Loss on debt
extinguishment
|
-
|
|
-
|
|
-
|
|
(2,254)
|
|
Other finance
expenses
|
(944)
|
|
(1,236)
|
|
(2,694)
|
|
(3,358)
|
|
Equity loss on
investments
|
(1,232)
|
|
(526)
|
|
(1,438)
|
|
(3,852)
|
|
Other
income/(expenses), net
|
(746)
|
|
(1,117)
|
|
(567)
|
|
(648)
|
|
Realized loss on
derivatives
|
(913)
|
|
(913)
|
|
(2,719)
|
|
(2,709)
|
|
Total Other
Income/(Expenses), net
|
(8,683)
|
|
(13,439)
|
|
2,550
|
|
(22,314)
|
|
Net
Income
|
122,996
|
|
133,156
|
|
414,646
|
|
426,378
|
|
EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$6.36
|
|
$6.76
|
|
$21.41
|
|
$21.28
|
|
Diluted earnings per
share
|
$6.30
|
|
$6.76
|
|
$21.22
|
|
$21.28
|
|
Basic weighted average
number of common shares (in thousands of shares)
|
19,345
|
|
19,693
|
|
19,368
|
|
20,039
|
|
Diluted weighted
average number of common shares (in thousands of shares)
|
19,517
|
|
19,693
|
|
19,540
|
|
20,039
|
|
Reconciliation of
Net Income to Adjusted Net Income – Unaudited
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Nine months
ended
|
|
Nine months
ended
|
|
September
30,
|
September
30,
|
|
September
30,
|
September
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net Income
|
$122,996
|
|
$133,156
|
|
$414,646
|
|
$426,378
|
|
Change in fair value of
investments
|
2,808
|
|
9,333
|
|
(10,395)
|
|
2,895
|
|
Loss on debt
extinguishment
|
-
|
|
-
|
|
-
|
|
2,254
|
|
Net (gain)/loss on
disposal/sale of vessels
|
445
|
|
-
|
|
(6,649)
|
|
(1,639)
|
|
Amortization of
financing fees
|
598
|
|
474
|
|
1,569
|
|
1,735
|
|
Adjusted Net
Income
|
$126,845
|
|
$142,963
|
|
$399,169
|
|
$431,623
|
|
Adjusted Earnings
Per Share, diluted
|
$6.50
|
|
$7.26
|
|
$20.43
|
|
$21.54
|
|
Diluted weighted
average number of shares (in thousands of shares)
|
19,517
|
|
19,693
|
|
19,540
|
|
20,039
|
|
|
|
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 and nine
months ended September 30, 2024 and 2023. The non-GAAP financial
measures should be viewed in addition to, and not as an alternative
for, the Company's reported results prepared in accordance with
GAAP. The non-GAAP financial measures as presented above may not be
comparable to similarly titled measures of other companies in the
shipping or other industries.
|
|
DANAOS
CORPORATION
|
|
Condensed
Consolidated Balance Sheets - Unaudited
|
|
(Expressed in
thousands of United States dollars)
|
|
|
|
|
As of
|
|
As of
|
|
September
30,
|
December
31,
|
|
|
|
2024
|
|
2023
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash
|
|
$384,336
|
|
$271,809
|
|
Accounts receivable,
net
|
|
24,647
|
|
9,931
|
|
Other current
assets
|
|
221,002
|
|
220,030
|
|
|
|
629,985
|
|
501,770
|
|
NON-CURRENT
ASSETS
|
|
|
|
|
|
Fixed assets,
net
|
|
3,215,293
|
|
2,746,541
|
|
Advances for vessels
acquisition and vessels under construction
|
|
299,458
|
|
301,916
|
|
Deferred charges,
net
|
|
46,133
|
|
38,012
|
|
Other non-current
assets
|
|
62,949
|
|
72,897
|
|
|
|
3,623,833
|
|
3,159,366
|
|
TOTAL
ASSETS
|
|
$4,253,818
|
|
$3,661,136
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
Long-term debt, current
portion
|
|
$31,720
|
|
$21,300
|
|
Accounts payable,
accrued liabilities & other current liabilities
|
|
128,687
|
|
146,860
|
|
|
|
160,407
|
|
168,160
|
|
LONG-TERM
LIABILITIES
|
|
|
|
|
|
Long-term debt,
net
|
|
647,276
|
|
382,874
|
|
Other long-term
liabilities
|
|
59,695
|
|
93,785
|
|
|
|
706,971
|
|
476,659
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Common stock
|
|
193
|
|
194
|
|
Additional paid-in
capital
|
|
688,649
|
|
690,190
|
|
Accumulated other
comprehensive loss
|
|
(72,472)
|
|
(75,979)
|
|
Retained
earnings
|
|
2,770,070
|
|
2,401,912
|
|
|
|
3,386,440
|
|
3,016,317
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$4,253,818
|
|
$3,661,136
|
|
DANAOS
CORPORATION
|
|
Condensed
Consolidated Statements of Cash Flows
- Unaudited
|
|
(Expressed in
thousands of United States dollars)
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Nine months
ended
|
|
Nine months
ended
|
|
September
30,
|
September
30,
|
September
30,
|
September
30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
|
Net
income
|
$122,996
|
|
$133,156
|
|
$414,646
|
|
$426,378
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
38,726
|
|
32,325
|
|
107,969
|
|
95,764
|
|
Amortization of deferred drydocking & special survey
costs and finance costs
|
8,083
|
|
5,246
|
|
21,478
|
|
14,844
|
|
Amortization of assumed time charters
|
-
|
|
(4,416)
|
|
(4,534)
|
|
(16,806)
|
|
Prior
service cost and periodic cost
|
1,133
|
|
220
|
|
1,848
|
|
1,106
|
|
(Gain)/loss on investments
|
2,808
|
|
9,333
|
|
(10,395)
|
|
2,895
|
|
Loss on
debt extinguishment
|
-
|
|
-
|
|
-
|
|
2,254
|
|
Net
(gain)/loss on disposal/sale of vessels
|
443
|
|
-
|
|
(6,651)
|
|
(1,639)
|
|
Payments
for drydocking/special survey
|
(14,072)
|
|
(6,993)
|
|
(28,690)
|
|
(21,553)
|
|
Amortization of deferred realized losses on cash flow
interest rate swaps
|
913
|
|
913
|
|
2,719
|
|
2,709
|
|
Equity
loss on investments
|
1,232
|
|
526
|
|
1,438
|
|
3,852
|
|
Stock
based compensation
|
1,594
|
|
-
|
|
4,747
|
|
-
|
|
Accounts
receivable
|
6,216
|
|
740
|
|
(6,579)
|
|
(1,716)
|
|
Other
assets, current and non-current
|
2,568
|
|
982
|
|
23,775
|
|
(11,424)
|
|
Accounts
payable and accrued liabilities
|
(6,728)
|
|
(4,654)
|
|
(961)
|
|
(7,805)
|
|
Other
liabilities, current and long-term
|
(8,368)
|
|
(17,872)
|
|
(55,699)
|
|
(58,747)
|
|
Net Cash provided
by Operating Activities
|
157,544
|
|
149,506
|
|
465,111
|
|
430,112
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
|
Vessel
additions and advances for vessels under construction
|
(239,353)
|
|
(98,274)
|
|
(581,208)
|
|
(128,058)
|
|
Net
proceeds and insurance proceeds from disposal/sale of
vessels
|
(443)
|
|
-
|
|
10,196
|
|
3,914
|
|
Investments
|
(1,225)
|
|
-
|
|
(1,225)
|
|
(74,407)
|
|
Net Cash used in
Investing Activities
|
(241,021)
|
|
(98,274)
|
|
(572,237)
|
|
(198,551)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
|
Proceeds
from long-term debt
|
118,000
|
|
-
|
|
299,000
|
|
-
|
|
Debt
repayment
|
(6,290)
|
|
(6,875)
|
|
(20,040)
|
|
(20,625)
|
|
Payments
of leaseback obligations
|
-
|
|
-
|
|
-
|
|
(72,925)
|
|
Dividends
paid
|
(15,476)
|
|
(14,802)
|
|
(46,487)
|
|
(45,163)
|
|
Repurchase
of common stock
|
(492)
|
|
(16,596)
|
|
(5,715)
|
|
(52,334)
|
|
Finance
costs
|
(375)
|
|
-
|
|
(7,105)
|
|
(1,892)
|
|
Net Cash provided
by/(used in) Financing Activities
|
95,367
|
|
(38,273)
|
|
219,653
|
|
(192,939)
|
|
Net increase in cash
and cash equivalents
|
11,890
|
|
12,959
|
|
112,527
|
|
38,622
|
|
Cash and cash
equivalents, beginning of period
|
372,446
|
|
293,331
|
|
271,809
|
|
267,668
|
|
Cash and cash
equivalents, end of period
|
$384,336
|
|
$306,290
|
|
$384,336
|
|
$306,290
|
|
DANAOS
CORPORATION
|
|
Reconciliation of
Net Income to Adjusted EBITDA - Unaudited
|
|
(Expressed in
thousands of United States dollars)
|
|
Three
months
ended
|
|
Three
months
ended
|
|
Nine
months
ended
|
|
Nine
months
ended
|
|
September
30,
|
September
30,
|
September
30,
|
September
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income
|
$122,996
|
|
$133,156
|
|
$414,646
|
|
$426,378
|
|
Depreciation
|
38,726
|
|
32,325
|
|
107,969
|
|
95,764
|
|
Amortization of
deferred drydocking & special survey costs
|
7,485
|
|
4,772
|
|
19,909
|
|
13,109
|
|
Amortization of assumed
time charters
|
-
|
|
(4,416)
|
|
(4,534)
|
|
(16,806)
|
|
Amortization of finance
costs and commitment fees
|
1,235
|
|
1,203
|
|
3,534
|
|
3,965
|
|
Amortization of
deferred realized losses on interest rate swaps
|
913
|
|
913
|
|
2,719
|
|
2,709
|
|
Interest
income
|
(3,124)
|
|
(3,091)
|
|
(8,983)
|
|
(9,410)
|
|
Interest expense
excluding amortization of finance costs
|
7,415
|
|
3,832
|
|
14,674
|
|
15,174
|
|
Change in fair value of
investments
|
2,808
|
|
9,333
|
|
(10,395)
|
|
2,895
|
|
Loss on debt
extinguishment
|
-
|
|
-
|
|
-
|
|
2,254
|
|
Net (gain)/loss on
disposal/sale of vessels
|
443
|
|
-
|
|
(6,651)
|
|
(1,639)
|
|
Adjusted
EBITDA(1)
|
$178,897
|
|
$178,027
|
|
$532,888
|
|
$534,393
|
|
Last twelve
months
ended
|
|
Last twelve
months
ended
|
|
|
September
30,
|
December
31,
|
|
|
2024
|
|
2023
|
|
|
Net income
|
$564,567
|
|
$576,299
|
|
|
Depreciation
|
141,492
|
|
129,287
|
|
|
Amortization of
deferred drydocking & special survey costs
|
25,463
|
|
18,663
|
|
|
Amortization of assumed
time charters
|
(8,950)
|
|
(21,222)
|
|
|
Amortization of finance
costs and commitment fees
|
4,705
|
|
5,136
|
|
|
Amortization of
deferred realized losses on interest rate swaps
|
3,632
|
|
3,622
|
|
|
Interest
income
|
(11,706)
|
|
(12,133)
|
|
|
Interest expense
excluding amortization of finance costs
|
17,762
|
|
18,262
|
|
|
Change in fair value of
investments
|
(31,157)
|
|
(17,867)
|
|
|
Stock based
compensation
|
6,340
|
|
6,340
|
|
|
Loss on debt
extinguishment
|
-
|
|
2,254
|
|
|
Net gain on
disposal/sale of vessels
|
(6,651)
|
|
(1,639)
|
|
|
Adjusted
EBITDA(1)
|
$705,497
|
|
$707,002
|
|
|
|
|
1)
|
Adjusted EBITDA
represents net income before interest income and expense,
depreciation, amortization of deferred drydocking & special
survey costs, amortization of assumed time charters, amortization
of deferred finance costs and commitment fees, amortization of
deferred realized losses on interest rate swaps, change in fair
value of investments, stock based compensation, loss on debt
extinguishment and net gain on disposal/sale of vessels. However,
Adjusted EBITDA is not a recognized measurement under U.S.
generally accepted accounting principles, or "GAAP." We believe
that the presentation of Adjusted EBITDA is useful to investors
because it is frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in our
industry. We also believe that EBITDA and Adjusted EBITDA assist
investors and analysts in comparing our performance across
reporting periods on a consistent basis by excluding items that we
do not believe are indicative of our core operating performance. In
evaluating Adjusted EBITDA, you should be aware that in the future
we may incur expenses that are the same as or similar to some of
the adjustments in this presentation. Our presentation of Adjusted
EBITDA should not be construed as an inference that our future
results will be unaffected by unusual or non-recurring items. The
non-GAAP financial measures as presented above may not be
comparable to similarly titled measures of other companies in the
shipping or other industries.
|
|
|
|
Note: Items to consider
for comparability include gains and charges. Gains positively
impacting net income are reflected as deductions to net income.
Charges negatively impacting net income are reflected as increases
to net income.
|
|
The Company reports its
financial results in accordance with U.S. generally accepted
accounting principles (GAAP). However, management believes that
certain non-GAAP financial measures used in managing the business
may provide users of these financial information additional
meaningful comparisons between current results and results in prior
operating periods. Management believes that these non-GAAP
financial measures can provide additional meaningful reflection of
underlying trends of the business because they provide a comparison
of historical information that excludes certain items that impact
the overall comparability. Management also uses these non-GAAP
financial measures in making financial, operating and planning
decisions and in evaluating the Company's performance. See the
Tables above for supplemental financial data and corresponding
reconciliations to GAAP financial measures for the three and nine
months ended September 30, 2024 and September 30, 2023; and the
last twelve months ended September 30, 2024 and December 31, 2023.
Non-GAAP financial measures should be viewed in addition to, and
not as an alternative for, the Company's reported results prepared
in accordance with GAAP.
|
|
DANAOS
CORPORATION
|
|
Reconciliation of
Net Income to Adjusted EBITDA per segment
|
|
Three Months Ended
September 30, 2024 and Three Months Ended September 30,
2023
|
|
Unaudited
|
|
(Expressed in
thousands of United States dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
September 30,
2024
|
|
|
September 30,
2023
|
|
|
Container
Vessels
|
|
Drybulk
Vessels
|
|
Other
|
|
Total
|
|
|
Container
Vessels
|
|
Drybulk
Vessels
|
|
Other
|
|
Total
|
|
Net
income/(loss)
|
|
$124,102
|
|
$62
|
|
$(1,168)
|
|
$122,996
|
|
|
$142,173
|
|
$(59)
|
|
$(8,958)
|
|
$133,156
|
|
Depreciation
|
|
35,520
|
|
3,206
|
|
-
|
|
38,726
|
|
|
32,315
|
|
10
|
|
-
|
|
32,325
|
|
Amortization of
deferred drydocking & special survey costs
|
|
6,927
|
|
558
|
|
-
|
|
7,485
|
|
|
4,772
|
|
-
|
|
-
|
|
4,772
|
|
Amortization of assumed
time charters
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
(4,416)
|
|
-
|
|
-
|
|
(4,416)
|
|
Amortization of finance
costs and commitment fees
|
|
1,235
|
|
-
|
|
-
|
|
1,235
|
|
|
1,203
|
|
-
|
|
-
|
|
1,203
|
|
Amortization of
deferred realized losses on interest rate swaps
|
|
913
|
|
-
|
|
-
|
|
913
|
|
|
913
|
|
-
|
|
-
|
|
913
|
|
Interest
income
|
|
(3,101)
|
|
-
|
|
(23)
|
|
(3,124)
|
|
|
(3,091)
|
|
-
|
|
-
|
|
(3,091)
|
|
Interest expense
excluding amortization of finance costs
|
|
7,415
|
|
-
|
|
-
|
|
7,415
|
|
|
3,832
|
|
-
|
|
-
|
|
3,832
|
|
Change in fair value of
investments
|
|
-
|
|
-
|
|
2,808
|
|
2,808
|
|
|
-
|
|
-
|
|
9,333
|
|
9,333
|
|
Net (gain)/loss on
disposal/sale of vessels
|
|
443
|
|
-
|
|
-
|
|
443
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Adjusted
EBITDA(1)
|
|
$173,454
|
|
$3,826
|
|
$1,617
|
|
$178,897
|
|
|
$177,701
|
|
$(49)
|
|
$375
|
|
$178,027
|
|
|
|
1)
|
Adjusted EBITDA
represents net income before interest income and expense,
depreciation, amortization of deferred drydocking & special
survey costs, amortization of assumed time charters, amortization
of deferred finance costs and commitment fees, amortization of
deferred realized losses on interest rate swaps, change in fair
value of investments and net gain on disposal/sale of vessels.
However, Adjusted EBITDA is not a recognized measurement under U.S.
generally accepted accounting principles, or "GAAP." We believe
that the presentation of Adjusted EBITDA is useful to investors
because it is frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in our
industry. We also believe that EBITDA and Adjusted EBITDA assist
investors and analysts in comparing our performance across
reporting periods on a consistent basis by excluding items that we
do not believe are indicative of our core operating performance. In
evaluating Adjusted EBITDA, you should be aware that in the future
we may incur expenses that are the same as or similar to some of
the adjustments in this presentation. Our presentation of Adjusted
EBITDA should not be construed as an inference that our future
results will be unaffected by unusual or non-recurring items. The
non-GAAP financial measures as presented above may not be
comparable to similarly titled measures of other companies in the
shipping or other industries.
|
|
|
|
Note: Items to consider
for comparability include gains and charges. Gains positively
impacting net income are reflected as deductions to net income.
Charges negatively impacting net income are reflected as increases
to net income.
|
|
|
|
The Company reports its
financial results in accordance with U.S. generally accepted
accounting principles (GAAP). However, management believes that
certain non-GAAP financial measures used in managing the business
may provide users of these financial information additional
meaningful comparisons between current results and results in prior
operating periods. Management believes that these non-GAAP
financial measures can provide additional meaningful reflection of
underlying trends of the business because they provide a comparison
of historical information that excludes certain items that impact
the overall comparability. Management also uses these non-GAAP
financial measures in making financial, operating and planning
decisions and in evaluating the Company's performance. See the
Tables above for supplemental financial data and corresponding
reconciliations to GAAP financial measures for the three months
ended September 30, 2024 and 2023. Non-GAAP financial measures
should be viewed in addition to, and not as an alternative for, the
Company's reported results prepared in accordance with
GAAP.
|
|
DANAOS
CORPORATION
|
|
Reconciliation of
Net Income to Adjusted EBITDA per segment
|
|
Nine Months Ended
September 30, 2024 and Nine Months Ended September 30,
2023
|
|
Unaudited
|
|
(Expressed in
thousands of United States dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September 30,
2024
|
|
|
September 30,
2023
|
|
|
Container
Vessels
|
|
Drybulk
Vessels
|
|
Other
|
|
Total
|
|
|
Container
Vessels
|
|
Drybulk
Vessels
|
|
Other
|
|
Total
|
|
Net
income/(loss)
|
|
$396,144
|
|
$2,689
|
|
$15,813
|
|
$414,646
|
|
|
$432,283
|
|
$(59)
|
|
$(5,846)
|
|
$426,378
|
|
Depreciation
|
|
100,775
|
|
7,194
|
|
-
|
|
107,969
|
|
|
95,754
|
|
10
|
|
-
|
|
95,764
|
|
Amortization of
deferred drydocking & special survey costs
|
|
19,062
|
|
847
|
|
-
|
|
19,909
|
|
|
13,109
|
|
-
|
|
-
|
|
13,109
|
|
Amortization of assumed
time charters
|
|
(4,534)
|
|
-
|
|
-
|
|
(4,534)
|
|
|
(16,806)
|
|
-
|
|
-
|
|
(16,806)
|
|
Amortization of finance
costs and commitment fees
|
|
3,534
|
|
-
|
|
-
|
|
3,534
|
|
|
3,965
|
|
-
|
|
-
|
|
3,965
|
|
Amortization of
deferred realized losses on interest rate swaps
|
|
2,719
|
|
-
|
|
-
|
|
2,719
|
|
|
2,709
|
|
-
|
|
-
|
|
2,709
|
|
Interest
income
|
|
(8,960)
|
|
-
|
|
(23)
|
|
(8,983)
|
|
|
(9,410)
|
|
-
|
|
-
|
|
(9,410)
|
|
Interest expense
excluding amortization of finance costs
|
|
14,674
|
|
-
|
|
-
|
|
14,674
|
|
|
15,174
|
|
-
|
|
-
|
|
15,174
|
|
Change in fair value of
investments
|
|
-
|
|
-
|
|
(10,395)
|
|
(10,395)
|
|
|
-
|
|
-
|
|
2,895
|
|
2,895
|
|
Loss on debt
extinguishment
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
2,254
|
|
-
|
|
-
|
|
2,254
|
|
Net gain on
disposal/sale of vessels
|
|
(6,651)
|
|
-
|
|
-
|
|
(6,651)
|
|
|
(1,639)
|
|
-
|
|
-
|
|
(1,639)
|
|
Adjusted
EBITDA(1)
|
|
$516,763
|
|
$10,730
|
|
$5,395
|
|
$532,888
|
|
|
$537,393
|
|
$(49)
|
|
$(2,951)
|
|
$534,393
|
|
|
|
1)
|
Adjusted EBITDA
represents net income before interest income and expense,
depreciation, amortization of deferred drydocking & special
survey costs, amortization of assumed time charters, amortization
of deferred finance costs and commitment fees, amortization of
deferred realized losses on interest rate swaps, change in fair
value of investments and net gain on disposal/sale of vessels.
However, Adjusted EBITDA is not a recognized measurement under U.S.
generally accepted accounting principles, or "GAAP." We believe
that the presentation of Adjusted EBITDA is useful to investors
because it is frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in our
industry. We also believe that EBITDA and Adjusted EBITDA assist
investors and analysts in comparing our performance across
reporting periods on a consistent basis by excluding items that we
do not believe are indicative of our core operating performance. In
evaluating Adjusted EBITDA, you should be aware that in the future
we may incur expenses that are the same as or similar to some of
the adjustments in this presentation. Our presentation of Adjusted
EBITDA should not be construed as an inference that our future
results will be unaffected by unusual or non-recurring items. The
non-GAAP financial measures as presented above may not be
comparable to similarly titled measures of other companies in the
shipping or other industries.
|
|
|
|
Note: Items to consider
for comparability include gains and charges. Gains positively
impacting net income are reflected as deductions to net income.
Charges negatively impacting net income are reflected as increases
to net income.
|
|
|
|
The Company reports its
financial results in accordance with U.S. generally accepted
accounting principles (GAAP). However, management believes that
certain non-GAAP financial measures used in managing the business
may provide users of these financial information additional
meaningful comparisons between current results and results in prior
operating periods. Management believes that these non-GAAP
financial measures can provide additional meaningful reflection of
underlying trends of the business because they provide a comparison
of historical information that excludes certain items that impact
the overall comparability. Management also uses these non-GAAP
financial measures in making financial, operating and planning
decisions and in evaluating the Company's performance. See the
Tables above for supplemental financial data and corresponding
reconciliations to GAAP financial measures for the nine months
ended September 30, 2024 and 2023. Non-GAAP financial measures
should be viewed in addition to, and not as an alternative for, the
Company's reported results prepared in accordance with
GAAP.
|
|
DANAOS
CORPORATION
|
|
Reconciliation of
Net Income to Adjusted Net Income per segment
|
|
Three Months Ended
September 30, 2024 and Three Months Ended September 30,
2023
|
|
Unaudited
|
|
(Expressed in
thousands of United States dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
September 30,
2024
|
|
|
September 30,
2023
|
|
|
Container
Vessels
|
|
Drybulk
Vessels
|
|
Other
|
|
Total
|
|
|
Container
Vessels
|
|
Drybulk
Vessels
|
|
Other
|
|
Total
|
|
Net
income/(loss)
|
|
$124,102
|
|
$62
|
|
$(1,168)
|
|
$122,996
|
|
|
$142,173
|
|
$(59)
|
|
$(8,958)
|
|
$133,156
|
|
Change in fair value of
investments
|
|
-
|
|
-
|
|
2,808
|
|
2,808
|
|
|
-
|
|
-
|
|
9,333
|
|
9,333
|
|
Amortization of
financing fees
|
|
598
|
|
-
|
|
-
|
|
598
|
|
|
474
|
|
-
|
|
-
|
|
474
|
|
Net loss on
disposal/sale of vessels
|
|
443
|
|
-
|
|
-
|
|
443
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Adjusted Net
income/(loss)(1)
|
|
$125,143
|
|
$62
|
|
$1,640
|
|
$126,845
|
|
|
$142,647
|
|
$(59)
|
|
$375
|
|
$142,963
|
|
Adjusted Earnings
per Share, diluted
|
|
|
|
|
|
|
|
$6.50
|
|
|
|
|
|
|
|
|
$7.26
|
|
Diluted weighted
average number of shares (in thousands of shares)
|
|
19,517
|
|
|
|
|
19,693
|
|
DANAOS
CORPORATION
|
|
Reconciliation of
Net Income to Adjusted Net Income per segment
|
|
Nine Months Ended
September 30, 2024 and Nine Months Ended September 30,
2023
|
|
Unaudited
|
|
(Expressed in
thousands of United States dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September 30,
2024
|
|
|
September 30,
2023
|
|
|
Container
Vessels
|
|
Drybulk
Vessels
|
|
Other
|
|
Total
|
|
|
Container
Vessels
|
|
Drybulk
Vessels
|
|
Other
|
|
Total
|
|
Net
income/(loss)
|
|
$396,144
|
|
$2,689
|
|
$15,813
|
|
$414,646
|
|
|
$432,283
|
|
$(59)
|
|
$(5,846)
|
|
$426,378
|
|
Change in fair value of
investments
|
|
-
|
|
-
|
|
(10,395)
|
|
(10,395)
|
|
|
-
|
|
-
|
|
2,895
|
|
2,895
|
|
Loss on debt
extinguishment
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
2,254
|
|
-
|
|
-
|
|
2,254
|
|
Amortization of
financing fees
|
|
1,569
|
|
-
|
|
-
|
|
1,569
|
|
|
1,735
|
|
-
|
|
-
|
|
1,735
|
|
Net gain on
disposal/sale of vessels
|
|
(6,651)
|
|
-
|
|
-
|
|
(6,651)
|
|
|
(1,639)
|
|
-
|
|
-
|
|
(1,639)
|
|
Adjusted Net
income/(loss)(1)
|
|
$391,062
|
|
$2,689
|
|
$5,418
|
|
$399,169
|
|
|
$434,633
|
|
$(59)
|
|
$(2,951)
|
|
$431,623
|
|
Adjusted Earnings
per Share, diluted
|
|
|
|
|
|
|
|
$20.43
|
|
|
|
|
|
|
|
|
$21,54
|
|
Diluted weighted
average number of shares (in thousands of shares)
|
|
19,540
|
|
|
|
|
20,039
|
|
|
|
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 and nine
months ended September 30, 2024 and 2023. Non-GAAP financial
measures should be viewed in addition to, and not as an alternative
for, the Company's reported results prepared in accordance with
GAAP. The non-GAAP financial measures as presented above may not be
comparable to similarly titled measures of other companies in the
shipping or other industries.
|
View original
content:https://www.prnewswire.com/news-releases/danaos-corporation-reports-third-quarter-and-nine-months-results-for-the-period-ended-september-30-2024-302302417.html
SOURCE Danaos Corporation