-- Net earnings on a comparable basis of $20.0 million or $0.37 per share
for the quarter ended March 31, 2009 compared to $25.9 million or $0.48 per
share for the respective period of 2008, adjusted for a gain on sale of
vessels of $5.6 million recorded during the first quarter of 2008.
-- Operating revenues of $75.3 million for the quarter ended March 31,
2009 compared to $69.9 million for the respective period of 2008.
-- EBITDA on a comparable basis of $47.9 million for the quarter ended
March 31, 2009 compared to $45.6 million for the respective period of 2008,
adjusted for a gain on sale of vessels of $5.6 million recorded during the
first quarter of 2008.
Danaos' CEO Dr. John Coustas commented:
In the first quarter of 2009, we achieved solid earnings despite the
overall market disruption. We report net earnings of $20.0 million or $0.37
per share, which I believe is a performance highly satisfactory considering
the overall state of the world economy and the shipping markets in
particular. We have managed to increase our revenues to $75.3 million, up
from $69.9 million in the first quarter of 2008 as a direct result of the
continuing successful expansion of our fleet and have kept the utilization
rate of our fleet at the usual high levels of the past years. I am also
very pleased to report that we have been able to keep the daily operating
cost of our fleet under time charters unchanged as compared to that a year
ago.
In this last quarter alone, we took delivery of two vessels which have
already commenced their twelve-year charter with one of the largest liners
in the world. The Zim Monaco and the Zim Dalian are two modern 4,253 TEU
ships which were constructed and delivered to Danaos in time and according
to schedule by Samsung Heavy Industries. We consequently have 29 vessels on
order, all of which are chartered at reasonable charter rates with some of
the largest liner companies in the world.
We wish to reiterate that our vessels both operating and those under
construction are under long time charters with some of the largest
counterparties in the shipping industry. Although the current economic
conditions are presenting everybody in our trade with new challenges, our
chartering arrangements do not allow for unilateral modification of the
prevailing terms.
World trade has shown traces of stabilization particularly as we got closer
to the end of March, while this has been more visible through April. A
number of vessels in the world containership fleet which were idle
throughout the previous period were called once again back in duty pointing
to such stabilization and even a route specific recovery, which however
remains to be tested against time.
We are also in the position to report more solid information regarding
rearrangements of ship deliveries. We have come to an agreement with China
Shipbuilding Trading Company to delay the delivery date of the five 8,530
TEU containerships under construction by two hundred days each on average.
In addition, we have come to an agreement with Hanjin Heavy Industries &
Construction Company to delay the delivery date of the five 6,500 TEU and
the five 3,400 TEU containerships under construction by approximately one
quarter each. As of today, we are expecting to take delivery of six vessels
during the current year, twelve in 2010 (three of which may be delivered in
the following year as their delivery is scheduled for December 2010) and
eleven in 2011. Assuming that the three new-buildings of December 2010 will
finally be delivered in 2011, the remaining capital expenditure
installments are approximately $465 million for the remaining of 2009, $875
million for 2010 and $785 million for 2011.
During the first months of 2009, we signed a new $299 million loan facility
with Deutsche Schiffsbank. This additional facility, together with the
available undrawn capacity under our existing credit facilities and the
cash expected to be generated by our operations, is expected to cover our
2009, and a portion of our 2010, funding requirements. We are currently in
discussions to arrange additional financing for the unfunded part of our
new building fleet and we believe that despite the challenging current
credit conditions we should be able to obtain these additional funds in
time to meet our commitments, also supported by the fact that all of our
new buildings are already chartered for long-term periods. At the same time
we are engaged in further negotiations to delay construction payments and
subsequent deliveries of certain of our vessels for which we have not so
far arranged for specific debt financing, which we will communicate to the
market as soon as we have more concrete results.
On our existing debt we have either received waivers or are in discussions
with the lead arrangers of such debt to receive waivers covering breaches
of financial covenants, principally our loan to value requirements, our
required ratio of total liabilities (after deducting cash and cash
equivalents) to market value adjusted total assets and our book and market
value adjusted net worth requirements. However, certain of these agreements
have not yet been reduced to writing and remain subject to the requisite
approval of the applicable lending syndicates.
Even more so in these challenging times, our strategy at Danaos is firmly
focused in maximizing total returns of shareholders.
Three months ended March 31, 2009 compared to the three months ended March
31, 2008
During the quarter ended March 31, 2009, Danaos had an average of 39.0
containerships as opposed to 36.3 containerships for the same period of
2008. During the first quarter of 2009, we took delivery of two new
vessels. Our fleet utilization was 96.3% in the first quarter of 2009.
Our net income on a comparable basis was $20.0 million or $0.37 per share
for the three months ended March 31, 2009 compared to $25.9 million or
$0.48 per share for the three months ended March 31, 2008, adjusted for a
gain on sale of vessels of $5.6 million recorded during the first quarter
of 2008. This represents a decrease of 22.8% or $5.9 million, which is
mainly attributed to increased interest expense of $5.4 million resulted
from the increase of our average indebtedness during the quarter ended
March 31, 2009 compared to the same period of 2008. Furthermore, in the
first quarter of 2009 deferred fees of $0.4 million were written-off. Our
net income on a reported basis was $20.0 million or $0.37 per share for the
three months ended March 31, 2009 compared to $31.5 million or $0.58 per
share for the three months ended March 31, 2008.
Operating Revenue
Operating revenue increased 7.7%, or $5.4 million, to $75.3 million in the
quarter ended March 31, 2009, from $69.9 million in the quarter ended March
31, 2008. The increase was primarily attributable to the addition of five
vessels to our fleet, as follows:
Vessel Size
Vessel Name (TEU) Date Delivered
------------------ ------------------
Zim Rio Grande 4,253 July 4, 2008
Zim Sao Paolo 4,253 September 22, 2008
Zim Kingston 4,253 November 3, 2008
Zim Monaco 4,253 January 2, 2009
Zim Dalian 4,253 March 31, 2009
These additions to our fleet contributed revenues of $8.2 million during
the three months ended March 31, 2009. In addition, three 2,200 TEU
containerships, the Hyundai Progress, the Hyundai Highway and the Hyundai
Bridge, which were added to our fleet on February 11, 2008, March 18, 2008
and March 20, 2008, respectively, contributed incremental revenues of $3.1
million during the three months ended March 31, 2009 compared to the three
months ended March 31, 2008. In addition, the Company sold three vessels as
follows:
Vessel Size
Vessel Name (TEU) Date Sold
------------------ ------------------
Maersk Constantia 3,101 May 20, 2008
Asia Express 3,101 October 26, 2008
Sederberg 3,101 December 10, 2008
These vessel sales reduced operating revenue by $2.9 million for the three
months ended March 31, 2009 compared to the contribution by such vessels to
operating revenue in the three months ended March 31, 2008. In addition,
one 5,506 TEU containership, the APL Belgium and one 3,101 TEU
containership, the Winderberg, which were sold on January 15, 2008 and
January 25, 2008, respectively, contributed revenues of $0.3 million for
the three months ended March 31, 2008 compared to nil contribution by such
vessels in the three months ended March 31, 2009.
We also had a further decrease in revenues of $2.7 million, mainly
attributed to revenue lost due to off-hire days of vessels under drydocking
during the three months ended March 31, 2009 compared to the three months
ended March 31, 2008.
Vessel Operating Expenses
Vessel operating expenses increased 11.6%, or $2.3 million, to
$22.1 million in the quarter ended March 31, 2009, from $19.8 million in
the quarter ended March 31, 2008. The increase was due to the increase in
the average number of vessels in our fleet under time charter during the
quarter ended March 31, 2009 compared to the quarter ended March 31, 2008.
Furthermore, we have successfully implemented efficient management controls
on our operating expenses, resulting in a flat daily operating cost of less
than $6,300 for the vessels of our fleet under time charter during the
three months ended March 31, 2009 compared to the three months ended March
31, 2008.
Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of
Deferred Dry-docking and Special Survey Costs.
Depreciation
Depreciation expense increased 20.3%, or $2.4 million, to $14.2 million in
the quarter ended March 31, 2009, from $11.8 million in the quarter ended
March 31, 2008. The increase in depreciation expense was due to the
increased average number of vessels in our fleet during the quarter ended
March 31, 2009 compared to the same period of 2008.
Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs increased
18.8%, or $0.3 million, to $1.9 million in the quarter ended March 31,
2009, from $1.6 million in the quarter ended March 31, 2008. The increase
reflects higher drydocking costs incurred, which were subject to
amortization during the three months ended March 31, 2009 as compared to
the same period of 2008.
General and Administrative Expenses
General and administrative expenses increased 10.7%, or $0.3 million, to
$3.1 million in the quarter ended March 31, 2009, from $2.8 million in the
same quarter of 2008. The increase was primarily a result of increased fees
of $0.4 million paid to our Manager in the first quarter of 2009 compared
to the same period of 2008 due to the increase in the average number of our
vessels in our fleet and an increase of the fees paid to our manager.
On February 12, 2009, the Company signed an addendum to the management
contract amending the management fees to a fee of $575 per day (from $500
per day), a fee of $290 per vessel per day (from $250 per vessel per day)
for vessels on bareboat charter, a fee of $575 per vessel per day (from
$500 per vessel per day) for vessels on time charter and a flat fee of
$725,000 per newbuilding vessel (from $400,000 per newbuilding vessel) for
the supervision of newbuilding contracts. All commissions to Manager
remained unchanged.
Other Operating Expenses
Other Operating Expenses include Voyage Expenses
Voyage Expenses
Voyage expenses increased 25.0% or $0.4 million, to $2.0 million in the
quarter ended March 31, 2009, from $1.6 million for the quarter ended March
31, 2008. The increase was the result of increased bunker costs of $0.4
million, attributed to five of our vessels for which drydocking was
performed during the first quarter of 2009. Our vessels are not otherwise
subject to fuel costs, which are paid by our charterers.
Interest Expense and Interest Income
Interest expense increased 74.0%, or $5.4 million, to $12.7 million in the
quarter ended March 31, 2009, from $7.3 million in the quarter ended March
31, 2008. The change in interest expense was due to the increase in our
average debt by $748.9 million to $2,101.7 million in the quarter ended
March 31, 2009, from $1,352.8 million in the quarter ended March 31, 2008.
The financing of our extensive new-building program resulted in interest
capitalization, rather than such interest being recognized as an expense,
of $7.2 million for the quarter ended March 31, 2009 compared to $10.2
million of capitalized interest for the quarter ended March 31, 2008.
Interest income decreased by $0.1 million, to $1.0 million in the quarter
ended March 31, 2009, from $1.1 million in the quarter ended March 31,
2008. The decrease in interest income is attributed to lower interest rates
during the three months ended March 31, 2009 as opposed to the three months
ended March 31, 2008.
Restricted cash is attributed to cash raised through our revolving credit
facilities designated to finance certain of our new buildings and is
gradually utilized to fund progress payments of these new buildings up to
their deliveries through the third quarter of 2011.
Other income/(expenses), net
Other income/(expenses), net, decreased by $0.1 million, to $(0.4) million
in the quarter ended March 31, 2009, from $(0.3) million in the same
quarter of 2008.
EBITDA
EBITDA on a comparable basis increased by $2.3 million, or 5.0%, to
$47.9 million in the quarter ended March 31, 2009, from $45.6 million in
the quarter ended March 31, 2008, adjusted for a gain on sale of vessels of
$5.6 million recorded during the first quarter of 2008. EBITDA on a
reported basis decreased by $3.3 million, or 6.4%, to $47.9 million in the
quarter ended March 31, 2009, from $51.2 million in the quarter ended March
31, 2008. A table reconciling EBITDA to net income can be found at the end
of this earnings release.
Recent News
Based on the unaudited financial statements for the year ended December 31,
2008 and valuations of our fleet as of December 2008 that we received from
two independent ship brokers, we determined that we were in breach of
covenants, principally our loan to value requirements, our required ratio
of total liabilities (after deducting cash and cash equivalents) to market
value adjusted total assets and our book and market value adjusted net
worth requirements under certain of our credit facilities. Substantially
all of our long-term debt continues to be classified as non-current as of
December 31, 2008 and March 31, 2009, because our debt covenant violations
as of December 31, 2008 have been (or are expected to be) waived by our
lenders and the relevant covenants have been (or are expected to be)
amended to levels that we expect to be able to comply within future
periods. To the extent that we are unable to finalize formalization of
these waivers and amendments prior to the issuance of our audited 2008
financial statements, any long-term debt for which we have been unable to
secure waivers and, where applicable, amended covenants, will be required
to be classified as current, reflecting our lenders' ability to call that
debt at any time at their option.
We have come to an agreement with China Shipbuilding Trading Company to
delay the delivery date of the five 8,530 TEU containerships under
construction by two hundred days each on average. In addition, we have come
to an agreement with Hanjin Heavy Industries & Construction Company to
delay the delivery date of the five 6,500 TEU and the five 3,400 TEU
containerships under construction by approximately one quarter each. As of
today we are expecting to take delivery of six vessels during the current
year, twelve in 2010 (three of which may be delivered in the following year
as their delivery is scheduled for December 2010) and eleven in 2011.
Assuming that the three newbuildings of December 2010 will finally be
delivered in 2011, the remaining capital expenditure installments are
approximately $465 million for the remaining of 2009, $875 million for 2010
and $785 million for 2011. Each of our newbuilding vessels, including those
with delayed deliveries, have long-term time charters arranged at
reasonable rates with leading liner companies.
Conference Call and Webcast
On Wednesday, April 29, 2009 at 10:00 A.M. EDT, the Company's management
will host a conference call to discuss the results. Conference Call
details: Participants should dial into the call 10 minutes before the
scheduled time using the following numbers: 1 866 819 7111 (US Toll Free
Dial In), 0800 953 0329 (UK Toll Free Dial In) or +44 (0)1452 542 301
(Standard International Dial In). Please quote "Danaos" to the operator.
In case of any problems with the above numbers, please dial 1 866 223 0615
(US Toll Free Dial In). 0800 694 1503 (UK Toll Free Dial In) or +44 (0)1452
586 513 (Standard International Dial In). Please quote "Danaos" to the
operator. A telephonic replay of the conference call will be available
until May 6, 2009 by dialing 1 866 247 4222 (US Toll Free Dial In), 0800
953 1533 (UK Toll Free Dial In) or +44 (0)1452 550 000 (Standard
International Dial In). Access Code: 1186615#. Audio webcast: There will
also be a live and then archived webcast of the conference call through the
Danaos website (www.danaos.com). Participants to the live webcast should
register on the website approximately 10 minutes prior to the start of the
webcast.
About Danaos Corporation
Danaos Corporation is an international owner of containerships, chartering
its vessels to many of the world's largest liner companies. Our current
fleet of 40 containerships aggregating 161,680 TEUs ranks Danaos among the
largest containership charter owners in the world based on total TEU
capacity. Danaos is the largest US listed containership company based on
fleet size. Furthermore, the company has a contracted fleet of 29
additional containerships aggregating 222,203 TEU with scheduled deliveries
up to 2011. The company'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 safeharbor 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, many of which are
based, in turn, upon further assumptions, including without limitation,
management's examination of historical operating trends, data contained in
our records and other data available from third parties. 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, shipyard 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, 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 129 off-hire days in total in the first quarter of 2009. The
following table summarizes vessel utilization and the impact of the
off-hire days on the company's revenue relating to the last four quarters.
Second Third Fourth First
Vessel Utilization Quarter Quarter Quarter Quarter
(No. of Days) 2008 2008 2008 2009 Total
--------- --------- --------- --------- ---------
Ownership Days 3,417 3,502 3,560 3,510 13,989
Less Off-hire Days:
Scheduled Off-hire
Days (78) (40) (29) (125) (272)
Other Off-hire
Days -- (2) (23) (4) (29)
--------- --------- --------- --------- ---------
Operating Days 3,339 3,460 3,508 3,381 13,688
========= ========= ========= ========= =========
Vessel Utilization 97.7% 98.8% 98.5% 96.3% 97.8%
Revenue - Impact of
Off-hire Second Third Fourth First
(in '000s of US Quarter Quarter Quarter Quarter
Dollars) 2008 2008 2008 2009 Total
--------- --------- --------- --------- ---------
100% Fleet
Utilization $ 74,482 $ 77,303 $ 79,866 $ 77,931 $ 309,582
Less Off-hire Days:
Scheduled Off-hire
Days (573) (807) (563) (2,512) (4,455)
Other Off-hire
Days -- (80) (600) (167) (847)
--------- --------- --------- --------- ---------
Actual Revenue
Earned $ 73,909 $ 76,416 $ 78,703 $ 75,252 $ 304,280
========= ========= ========= ========= =========
Fleet List
The following table describes in detail our fleet deployment profile as of
April 28, 2009.
Vessel Size Expiration of
Vessel Name (TEU) Year Built Charter(1)
-------------- -------------- --------------
Containerships
CSCL Le Havre 9,580 2006 September 2018
CSCL Pusan 9,580 2006 July 2018
MSC Baltic 8,468 2004 September 2016
CSCL Europe 8,468 2004 June 2016
MSC Marathon (2) 4,814 1991 September 2011
Maersk Messologi 4,814 1991 September 2011
Maersk Mytilini 4,814 1991 September 2011
Hyundai Commodore (3) 4,651 1992 March 2011
Hyundai Duke 4,651 1992 February 2011
APL Confidence (4) 4,651 1994 September 2012
YM Colombo 4,300 2004 March 2019
YM Singapore 4,300 2004 October 2019
YM Seattle 4,253 2007 July 2019
YM Vancouver 4,253 2007 September 2019
Derby (5) 4,253 2004 April 2010
Maersk Deva 4,253 2004 January 2011
ZIM Rio Grande 4,253 2008 May 2020
ZIM Sao Paolo 4,253 2008 August 2020
ZIM Kingston 4,253 2008 September 2020
ZIM Monaco 4,253 2009 November 2020
ZIM Dalian 4,253 2009 February 2021
Al Rayyan 3,908 1989 January 2011
YM Yantian 3,908 1989 July 2011
YM Milano 3,129 1988 May 2011
CMA CGM Lotus 3,098 1988 July 2010
CMA CGM Vanille 3,045 1986 July 2010
CMA CGM Passiflore 3,039 1986 May 2010
CMA CGM Elbe 2,917 1991 June 2010
CMA CGM Kalamata 2,917 1991 June 2010
CMA CGM Komodo 2,917 1991 June 2010
Hyundai Advance 2,200 1997 June 2017
Hyundai Future 2,200 1997 August 2017
Hyundai Sprinter 2,200 1997 August 2017
Hyundai Stride 2,200 1997 July 2017
Hyundai Progress 2,200 1998 December 2017
Hyundai Bridge 2,200 1998 January 2018
Hyundai Highway 2,200 1998 January 2018
Hyundai Vladivostok 2,200 1997 May 2017
Montreal Senator (6) 2,130 1984 May 2010
MSC Eagle 1,704 1978 January 2010
(1) Earliest date charters could expire. Some charters include options to
extend their term.
(2) On August 22, 2008, the Maersk Marathon was renamed to MSC Marathon at
the request of the charterer of this vessel.
(3) On April 2, 2009, the MOL Affinity was renamed to Hyundai Commodore at
the request of the charterer of this vessel.
(4) On June 2, 2008, the MOL Confidence was renamed to APL Confidence at
the request of the charterer of this vessel.
(5) On April 10, 2009, the Maersk Derby was renamed to Derby at the
request of the charterer of this vessel.
(6) On April 8, 2008, the Pacific Bridge was renamed to Montreal Senator
at the request of the charterer of this vessel.
New Deliveries The following table describes the expected additions to our fleet as a result of our new building containership program.
Vessel Size Expected Time Charter
Vessel Name (TEU) Delivery Term
-------------- -------------- --------------
HN 1699 4,253 June 2009 12 years
HN S4001(1) 6,500 July 2009 12 years
HN S4002(1) 6,500 September 2009 12 years
HN S4003(1) 6,500 October 2009 12 years
HN S4004(1) 6,500 December 2009 12 years
HN N-219 3,400 December 2009 10 years
HN N-214 6,500 January 2010 18 years
HN S4005(1) 6,500 January 2010 12 years
HN N-215 6,500 March 2010 18 years
HN N-220 3,400 April 2010 10 years
HN N-216 6,500 May 2010 15 years
HN N-217 6,500 July 2010 15 years
HN N-221 3,400 July 2010 10 years
HN N-218 6,500 September 2010 15 years
HN N-222 3,400 October 2010 10 years
HN N-223 3,400 December 2010 10 years
Hull No S-461 10,100 December 2010 12 years
Hull No S-456 12,600 December 2010 12 years
Hull No S-462 10,100 February 2011 12 years
HN Z00001 8,530 March 2011 12 years
Hull No S-463 10,100 March 2011 12 years
Hull No S-457 12,600 March 2011 12 years
Hull No S-458 12,600 May 2011 12 years
HN Z00002 8,530 May 2011 12 years
HN Z00003 8,530 June 2011 12 years
HN Z00004 8,530 June 2011 12 years
Hull No S-459 12,600 June 2011 12 years
Hull No S-460 12,600 August 2011 12 years
HN H 1022A 8,530 September 2011 12 years
(1) Vessel subject to charterer's option to purchase vessel after first
eight years of time charter term for $78.0 million.
DANAOS CORPORATION
Statements of Income
(Unaudited)
(Expressed in thousands of United States dollars,
except share and per share amounts)
Three months Three months
ended ended
March 31, March 31,
-------------- --------------
2009 2008
-------------- --------------
OPERATING REVENUES $ 75,252 $ 69,877
OPERATING EXPENSES
Vessel operating expenses (22,063) (19,810)
Depreciation & amortization (16,136) (13,369)
General & administrative (3,120) (2,813)
Gain on sale of vessels -- 5,582
Other operating expenses (2,004) (1,636)
-------------- --------------
Income From Operations 31,929 37,831
-------------- --------------
OTHER EARNINGS (EXPENSES)
Interest income 986 1,086
Interest expense (12,708) (7,340)
Other finance cost, net (336) (425)
Other income / (expenses), net (419) (293)
Gain on derivatives 593 658
-------------- --------------
Total Other Income (Expenses), net (11,884) (6,314)
-------------- --------------
Net income from continuing operations $ 20,045 $ 31,517
-------------- --------------
Net (loss) income from discontinued
operations -- 5
-------------- --------------
Net Income $ 20,045 $ 31,522
============== ==============
EARNINGS PER SHARE (from continuing
operations)
Basic and diluted net income per share $ 0.37 $ 0.58
============== ==============
EARNINGS PER SHARE
Basic and diluted net income per share $ 0.37 $ 0.58
============== ==============
Basic and diluted weighted average number
of shares (in thousands of shares) 54,547 54,558
============== ==============
DANAOS CORPORATION
Balance Sheets
(Unaudited)
(Expressed in thousands of United States dollars)
As of As of
March 31, December 31,
-------------- --------------
2009 2008
-------------- --------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 106,014 $ 120,720
Restricted cash, current portion 145,098 190,951
Accounts receivable, net 786 1,119
Other current assets 27,953 23,954
-------------- --------------
279,851 336,744
NON-CURRENT ASSETS
Fixed assets, net 1,456,784 1,339,645
Advances for vessel acquisitions and
vessels under construction 1,069,478 1,067,825
Restricted cash, net of current portion 74,473 60,591
Deferred charges, net 19,733 16,098
Fair value of financial instruments 5,911 6,691
Other non-current assets 943 870
-------------- --------------
2,627,322 2,491,720
-------------- --------------
TOTAL ASSETS 2,907,173 2,828,464
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Long-term debt, current portion 32,219 32,219
Accounts payable, accrued liabilities &
other current liabilities 40,089 31,779
Fair value of financial instruments,
current portion 52,527 48,217
-------------- --------------
124,835 112,215
LONG-TERM LIABILITIES
Long-term debt, net of current portion 2,132,419 2,075,459
Fair value of financial instruments, net
of current portion 369,150 414,668
Other long-term liabilities 6,726 7,088
-------------- --------------
2,508,295 2,497,215
STOCKHOLDERS' EQUITY
Common stock 546 546
Additional paid-in capital 288,584 288,615
Treasury stock (41) (88)
Accumulated other comprehensive loss (439,566) (474,514)
Retained earnings 424,520 404,475
-------------- --------------
274,043 219,034
-------------- --------------
Total liabilities and stockholders' equity $ 2,907,173 $ 2,828,464
============== ==============
DANAOS CORPORATION
Statements of Cash Flows
(Unaudited)
(Expressed in thousands of United States dollars)
Three months Three months
ended ended
March 31, March 31,
-------------- --------------
2009 2008
-------------- --------------
Cash Flows provided by / (used in):
Operating Activities:
Net income $ 20,045 $ 31,522
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation 14,221 11,759
Amortization of deferred charges 2,022 1,643
Written off amount of deferred charges 412 181
Stock based compensation 16 --
Payments for drydocking / special survey (4,720) (3,184)
Change in fair value of debt and
financial instruments (6,853) (1,781)
Gain on sale of vessels -- (5,582)
Accounts receivable 333 1,354
Other assets, current and non-current (4,072) (2,727)
Accounts payable and accrued liabilities 6,856 2,911
Other liabilities, current and
non-current 1,092 (33)
-------------- --------------
Cash provided by Operating Activities 29,352 36,063
-------------- --------------
Investing Activities:
Vessel acquisitions including advances (131) (76,240)
Vessels under construction (132,882) (137,280)
Proceeds from sale of vessels -- 54,457
-------------- --------------
Cash used in Investing Activities (133,013) (159,063)
-------------- --------------
Financing Activities:
Debt draw downs 67,550 185,013
Debt repayment (9,217) (40,217)
Dividends paid -- (25,369)
Deferred costs (1,349) (1,179)
Decrease in restricted cash 31,971 4,972
-------------- --------------
Cash provided by Financing Activities 88,955 123,220
-------------- --------------
Net change in cash and cash equivalents (14,706) 220
Cash and cash equivalents, beginning of
period 120,720 63,495
-------------- --------------
Cash and cash equivalents, end of period $ 106,014 $ 63,715
============== ==============
Reconciliation of Net Income to EBITDA - Unaudited
Three months Three months
ended ended
March 31, March 31,
-------------- --------------
2009 2008
-------------- --------------
Net income $ 20,045 $ 31,517
Depreciation 14,221 11,759
Amortization of deferred drydocking &
special survey costs 1,915 1,610
Interest income (986) (1,086)
Interest expense 12,708 7,340
-------------- --------------
EBITDA (1) from continuing operations $ 47,903 $ 51,140
EBITDA (1) from discontinued operations -- 5
-------------- --------------
EBITDA (1) $ 47,903 $ 51,145
============== ==============
(1) EBITDA represents net income before interest, income tax expense,
depreciation and amortization. However, EBITDA is not a recognized
measurement under U.S. generally accepted accounting principles, or
"GAAP." We believe that the presentation of 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 is useful in evaluating
our ability to service additional debt and make capital expenditures.
In addition, we believe that EBITDA is useful in evaluating our
operating performance and liquidity position compared to that of other
companies in our industry because the calculation of 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 and liquidity.
Contact Information: For further information please contact: Company Contact: Dimitri J. Andritsoyiannis Chief Financial Officer Danaos Corporation Athens, Greece Tel.: +30 210 419 6481 E-Mail: cfo@danaos.com Iraklis Prokopakis Chief Operating Officer Danaos Corporation Athens, Greece Tel.: +30 210 419 6400 E-Mail: coo@danaos.com Investor Relations and Financial Media Nicolas Bornozis President Capital Link, Inc. New York Tel. 212-661-7566 E-Mail: nbornozis@capitallink.com