SOURCE: Danaos Corporation

March 10, 2008 16:05 ET

Danaos Corporation Reports Fourth Quarter and Year End Results for the Year Ended December 31, 2007

ATHENS, GREECE--(Marketwire - March 10, 2008) - Danaos Corporation ("Danaos") (NYSE: DAC), a leading international owner of containerships, today reported unaudited results for the fourth quarter and the year ended December 31, 2007.

Highlights for the Fourth Quarter and the Year Ended December 31, 2007:

--  Net earnings of $44.6 million or $0.82 per share and $215.3 million or
    $3.95 per share for the quarter and the year ended December 31, 2007
    respectively, compared to $30.6 million or $0.57 per share and $101.1
    million or $2.16 per share for the respective periods of 2006.
--  Operating Revenues from continuing operations of $71.3 million and
    $258.8 million for the quarter and the year ended December 31, 2007
    respectively, compared to $57.7 million and $205.2 million for the
    respective periods of 2006.
--  EBITDA of $64.6 million and $280.5 million for the quarter and the
    year ended December 31, 2007 respectively, compared to $46.6 million and
    $163.3 million for the respective periods of 2006.
--  Paid dividends of $0.465 per share for the fourth quarter paid on
    February 14, 2008 to all shareholders of record as of January 30, 2008
    

Danaos' CEO Dr. John Coustas commented: "We are very pleased with our fourth quarter and 2007 achievements. During the fourth quarter we continued to successfully implement our growth strategy. During this last quarter we took delivery of two second-hand 2,200 TEU containerships, each of which has been chartered out for 10 years. We also took delivery of one second-hand 4,300 TEU containership, and one new 4,253 TEU containership. Three additional vessels of 2,200 TEU, are expected to join our fleet during the first quarter of 2008. Each of these three vessels are committed under 10 year charters following delivery. We arranged time-charters for three fully depreciated vessels in our fleet and decided to sell one fully depreciated vessel at a $5.5m profit. We further secured a 2 year charter for the MV Pacific Bridge. Danaos' contracted revenues have increased to approximately $7.3 billion, with charters extending as far as 2028.

"During the fourth quarter, the containership market further improved due to strong demand in the Far East-Europe and Middle East-India-Far East trades which counterbalanced a decline in the rate of growth in the transpacific trades. The lack of available vessels for new charters, especially in the 3,000 TEU and above sizes, explains our success in re-chartering all but one of our older vessels. The weakness in the US housing market which contributed to slow growth in the Transatlantic and Transpacific trades is likely to persist throughout the first half of 2008. However, vessel demand will keep strong due to the slow steaming that is increasingly becoming a practice due to the sustainable high oil price. The credit crunch has not significantly impacted our industry mainly as a result of the asset backed borrowing and long charter terms that characterise containership leasing.

"Vessel prices during the fourth quarter of 2007 have further strengthened as a result of strong new building demand for large containerships. The slow-down of the US economy will likely have a spill-over effect triggering some caution in the ordering of additional containerships.

"Earlier in January, our board of directors declared a dividend of $0.465 per share for the fourth quarter, which was paid in February 2008. The dividend reflects our dedication to increase shareholder value through enhanced distributable cash flows, resulting form the successful implementation of our growth strategy."

Three months ended December 31, 2007 compared to the three months ended December 31, 2006

During the quarter ended December 31, 2007, Danaos had an average of 36.1 containerships as opposed to 27.9 containerships for the same period of 2006. During the quarter, we acquired four vessels, the Hyundai Future on October 2, 2007, the YM Singapore on October 9, 2007, the Hyundai Sprinter on October 15, 2007 and the YM Vancouver on November 27, 2007.

Given the sale of our entire dry bulk fleet in the beginning of 2007, management has determined that the dry bulk business constituted discontinued operations. The following management and discussion analysis solely reflects results from continuing operations (containerships), unless otherwise noted.

Our net income from continuing operations was $44.7 million or $0.82 per share for the fourth quarter of 2007 compared to $23.6 million or $0.44 per share for the fourth quarter of 2006, an increase in net income from continuing operations of 89.4% or $21.1 million. Total net income (including income from discontinued operations) was $44.6 million or $0.82 per share for the fourth quarter of 2007 compared to $30.6 million or $0.57 per share for the fourth quarter of 2006, an increase in net income of 45.8% or $14.0 million. Normalized earnings per share for the quarter were $0.49. Normalized earnings do not reflect a one time gain of $19.0 million related to the UK leases for six of our vessels nor a loss of $1.2 million related to unrealized losses on derivative instruments.

Operating Revenue

Operating revenue increased 23.6%, or $13.6 million, to $71.3 million in the quarter ended December 31, 2007 from $57.7 million in the quarter ended December 31, 2006. The increase was primarily attributable to the addition to our fleet of nine vessels, as follows:


                                            Vessel Size
Vessel Name                                    (TEU)       Date Delivered
                                            ------------ ------------------
YM Colombo                                         4,300     March 12, 2007
YM Singapore                                       4,300    October 9, 2007
YM Seattle                                         4,253 September 10, 2007
YM Vancouver                                       4,253  November 27, 2007
Hyundai Vladivostok                                2,200      July 23, 2007
Hyundai Advance                                    2,200    August 20, 2007
Hyundai Stride                                     2,200  September 5, 2007
Hyundai Future                                     2,200    October 2, 2007
Hyundai Sprinter                                   2,200   October 15, 2007

These additions to our fleet contributed revenues of $15.2 million during the three months ended December 31, 2007. Moreover, three 4,814 TEU containerships, the Maersk Marathon, the Maersk Messologi and the Maersk Mytilini which were added to our fleet on December 13, 2006, December 18, 2006 and December 22, 2006, respectively, and the 9,580 TEU CSCL Le Havre which was added to our fleet on November 20, 2006, contributed incremental revenues of $7.2 million during the three months ended December 31, 2007 compared to the same period in 2006. In addition, the Company sold three vessels as follows:

                                            Vessel Size
Vessel Name                                    (TEU)         Date Sold
                                            ------------ ------------------
APL England                                        5,506      March 7, 2007
APL Scotland                                       5,506      June 22, 2007
APL Holland                                        5,506     August 3, 2007


The sale reduced revenue by $7.4 million during the three months ended December 31, 2007, in comparison to the same period in the previous year. The balance of $1.4 million is attributed to loss of revenue due to off hires and change of charter rates due to re-chartering.

Vessel Operating Expenses

Vessel operating expenses increased 31.9% or $4.6 million, to $19.0 million in the quarter ended December 31, 2007, from $14.4 million in the quarter ended December 31, 2006. The increase was mainly due to the increase in the average number of our vessels in our fleet during the quarter ended December 31, 2007 compared with the quarter ended December 31, 2006.

Depreciation & Amortization

Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.

Depreciation

Depreciation expense increased 40.2%, or $3.3 million, to $11.5 million in the quarter ended December 31, 2007, from $8.2 million in the quarter ended December 31, 2006. The increase in depreciation expense was due to the increase in the average number of vessels in our fleet as well as the higher acquisition cost of such additional vessels compared with those sold during the quarter ended December 31, 2007.

Amortization of Deferred Dry-docking and Special Survey Costs

Amortization of deferred dry-docking and special survey costs expense increased 41.7%, or $0.5 million, to $1.7 million in the quarter ended December 31, 2007, from $1.2 million in the quarter ended December 31, 2006. The increase resulted from more drydockings in 2007, which were amortized during the three months ended December 31, 2007 as compared to the same period of 2006.

General and Administrative Expenses

General and administrative expenses increased 35.0%, or $0.7 million, to $2.7 million in the quarter ended December 31, 2007 from $2.0 million in the same quarter of 2006. The increase resulted from both $0.4 million in fees paid to our Manager based on an increase in the average number of our vessels in our fleet in the fourth quarter 2007 compared with the fourth quarter of 2006 and $0.3 million in various administrative expenses which were not applicable in the quarter ended December 31, 2006.

Other Operating Expenses

Other Operating Expenses include Voyage Expenses

Voyage Expenses

Voyage expenses increased $0.2 million to $2.1 million in the quarter ended December 31, 2007, from $1.9 million for the quarter ended December 31, 2006. The increase in voyage expenses was attributable to the increase in the average number of our vessels in our fleet during the quarter ended December 31, 2007 compared with the quarter ended December 31, 2006.

Interest Expense and Interest Income

Interest expense increased 41.1%, or $2.3 million, to $7.9 million in the quarter ended December 31, 2007, from $5.6 million in the quarter ended December 31, 2006. The increase in interest expense was primarily due to the increase in our average indebtedness in the quarter ended December 31, 2007 compared with that of the same period in 2006, partially offset by the financing of our extensive new-building program which resulted in capitalizing $9.7 million of interest for the quarter ended December 31, 2007 as opposed to $2.8 million of capitalized interest for the quarter ended December 31, 2006. Interest income increased $0.1 million to $1.2 million in the quarter ended December 31, 2007 from $1.1 million in the quarter ended December 31, 2006 due to increased average bank deposits.

Other income/(expenses)

Other income (expenses) of $19.1 million for the three months ended December 31, 2007 represents a non-recurring gain of $19.0 million related to restructuring of our leasing arrangements of the CSCL Europe, the Msc Baltic, the Maersk Derby, the Maersk Deva, the CSCL Pusan and the CSCL Le Havre and their subsequent restructuring we entered into in October 2007.

EBITDA

EBITDA from continuing operations increased $27.0 million, or 71.8%, to $64.6 million in the quarter ended December 31, 2007 from $37.6 million in the quarter ended December 31, 2006. A table reconciling EBITDA to net income can be found at the end of this earnings release.

Twelve months ended December 31, 2007 compared to the twelve months ended December 31, 2006

Given the sale of our entire dry bulk fleet, management has determined that the dry bulk business constitutes discontinued operations. The following management and discussion analysis solely reflects results from continuing operations (containerships), unless otherwise noted.

During the twelve months ended December 31, 2007, we had an average of 32.3 containerships compared to 26.3 containerships during the twelve months ended December 31, 2006. The increase in the average number of containerships is a result of the addition to our fleet of nine vessels and the sale of three vessels during the 12 months ended December 31, 2007.

Our net income from continuing operations was $123.1 million or $2.26 per share for the twelve months ended December 31, 2007 compared to $65.4 million or $1.40 per share for the twelve months ended December 31, 2006, an increase in net income from continuing operations of 88.2% or $57.7 million. Total net income (including discontinued operations, which also accounts for profits from the sale of our dry bulk carrier fleet) was $215.3 million or $3.95 per share for the twelve months ended December 31, 2007 compared to $101.1 million or $2.16 per share for the twelve months ended December 31, 2006, an increase in net income of 113.0% or $114.2 million. Normalized earnings per share from all operations were $2.05 for the year. Normalized earnings do not reflect gain on sale of vessels of $88.4 million, a non recurring gain of $15.5 million related to the UK leases for six of our vessels and a loss of $0.7 million related to valuation of derivative instruments.

Operating Revenue

Operating revenue increased 26.1%, or $53.6 million, to $258.8 million in the twelve months ended December 31, 2007, from $205.2 million in the twelve months ended December 31, 2006. The increase was primarily attributable to the addition to our fleet of nine vessels, as follows:

                                            Vessel Size
Vessel Name                                    (TEU)       Date Delivered
                                            ------------ ------------------
YM Colombo                                         4,300     March 12, 2007
YM Singapore                                       4,300    October 9, 2007
YM Seattle                                         4,253 September 10, 2007
YM Vancouver                                       4,253  November 27, 2007
Hyundai Vladivostok                                2,200      July 23, 2007
Hyundai Advance                                    2,200    August 20, 2007
Hyundai Stride                                     2,200  September 5, 2007
Hyundai Future                                     2,200    October 2, 2007
Hyundai Sprinter                                   2,200   October 15, 2007

These additions to our fleet collectively contributed revenues of $23.4 million during the twelve months ended December 31, 2007. Moreover, a 4,651 TEU containership, the MOL Confidence, which was added to our fleet on March 23, 2006, three 4,814 TEU containerships, the Maersk Marathon, the Maersk Messologi and the Maersk Mytilini which were added to our fleet on December 13, December 18, and December 22, 2006 respectively, and two 9,580 TEU containerships, the CSCL Pusan and the CSCL Le Havre, which were added to our fleet on September 8, 2006 and November 20, 2006 respectively, contributed incremental revenues of $45.8 million during the twelve months ended December 31, 2007 compared to the twelve months ended December 31, 2006. In addition, the Company sold three vessels as follows:

                                            Vessel Size
Vessel Name                                    (TEU)         Date Sold
                                            ------------ ------------------
APL England                                        5,506      March 7, 2007
APL Scotland                                       5,506      June 22, 2007
APL Holland                                        5,506     August 3, 2007


The sale reduced revenue by $16.0 million during the twelve months ended December 31, 2007, compared with the previous year.

Vessel Operating Expenses

Vessel operating expenses increased 24.0%, or $12.7 million, to $65.7 million in the twelve months ended December 31, 2007, from $53.0 million in the twelve months ended December 31, 2006. This increase was due to the increase in the average number of containerships in our fleet by 6.0 vessels, or 22.8% to 32.3 containerships in the twelve months ended December 31, 2007 from 26.3 containerships in the twelve months ended December 31, 2006.

Depreciation & Amortization

Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.

Depreciation

Depreciation expense increased 48.7%, or $13.3 million, to $40.6 million in the twelve months ended December 31, 2007, from $27.3 million for the twelve months ended December 31, 2006. The increase in depreciation expense was due to the increase in the average number of vessels in our fleet as well as the higher acquisition cost of such additional vessels compared to those sold during the twelve months ended September 30, 2007.

Amortization of Deferred Drydocking and Special Survey Costs

Amortization of deferred drydocking and special survey costs expense increased 48.8%, or $2.0 million, to $6.1 million in the twelve months ended December 31, 2007, from $4.1 million in the twelve months ended December 31, 2006. The increase resulted from more drydockings for 2007 than 2006.

General and Administrative Expenses

General and administrative expenses increased 56.3%, or $3.6 million, to $10.0 million in the twelve months ended December 31, 2007 from $6.4 million in the twelve months ended December 31, 2006. The increase was mainly a result of public company related expenses which applied to the three months ended December 31, 2006. Such public company expenses were higher by $2.0 million in the twelve months ended December 31, 2007 compared with the twelve months ended December 31, 2006. Moreover, fees paid to our Manager were larger by $1.1 million as a result of an increase in the average number of our vessels in our fleet in the twelve months ended December 31, 2007 as opposed to those in the same period of 2006. The $0.5 million balance represents various other administrative expenses which were not applicable in the year ended December 31, 2006.

(Loss) on sale of vessels

Loss on sale of vessels of $0.3 million represents a loss on sale of three containerships for the twelve months ended December 31, 2007.

Other Operating Expenses

Other Operating Expenses include Voyage Expenses

Voyage Expenses

Voyage expenses increased 38.9%, or $2.1 million, to $7.5 million in the twelve months ended December 31, 2007, from $5.4 million for the twelve months ended December 31, 2006. The increase in voyage expenses was mainly due to commissions paid to our Manager of $2.1 million for the ten vessels acquired and sold in accordance with our management contract during the twelve months ended December 31, 2007 as opposed to $0.8 million of such commissions for the same period in 2006. The balance of $0.8 million is attributed to higher commissions on gross revenue, address and brokerage commissions and other voyage expenses, due to the increase in the average number of containerships in our fleet in the twelve months ended December 31, 2007, compared with the same period of 2006.

Interest Expense and Interest Income

Interest expense decreased 6.3%, or $1.5 million, to $22.4 million in the twelve months ended December 31, 2007, from $23.9 million in the twelve months ended December 31, 2006. The decrease in reported interest expense was primarily due to the financing of our significant new-building program which resulted in capitalizing $22.9 million of interest for the twelve months ended December 31, 2007 compared to $8.6 million of capitalized interest for the twelve months ended December 31, 2006, this was partially offset by the increase in our average indebtedness in the year ended December 31, 2007, compared with that of the same period in 2006. Interest income increased $1.3 million, or 36.1%, to $4.9 million in the twelve months ended December 31, 2007, from $3.6 million in the twelve months ended December 31, 2006, due to increased average bank deposits.

Other income/(expenses)

Other income (expenses) increased $33.1 million to $14.6 million for the year ended December 31, 2007 from $(18.5) million in the year ended December 31, 2006. The increase was primarily attributed to a non recurring gain of $15.9 million for 2007 compared to a non recurring loss of $18.7 million in 2006, both attributable to the leasing arrangements for the CSCL Europe, the MSC Baltic, the Maersk Derby, the Maersk Deva, the CSCL Pusan and the CSCL Le Havre and their subsequent restructuring entered into in October 2007.

Gain/(loss) on derivatives

Gain/(loss) on derivatives increased $6.8 million to $0.2 million in the twelve months ended December 31, 2007, from a $6.6 million loss in the twelve months ended December 31, 2006. This increase is a result of the initiation of hedge accounting from the third quarter of 2006.

EBITDA

EBITDA from continuing operations increased $70.2 million, or 59.9%, to $187.4 million in the twelve months ended December 31, 2007, from $117.2 million in the twelve months ended December 31, 2006. A table reconciling EBITDA to net income can be found at the end of this earnings release.

Dividend Payment

On October 22, 2007 we declared a dividend of $0.465 per common share for the third quarter of 2007 for all shareholders of record as of November 2, 2007 which was paid on November 16, 2007. On January 18, 2008 the Board of Directors declared a dividend of $0.465 per common share for the fourth quarter of 2007 payable on February 14, 2008 to all shareholders of record as of January 30, 2008.

Recent News

During the last few months we time-chartered one of our 30 year old ships, the S.A. Helderberg, a 3,100 TEU containership, for a period of 12 months beginning December 7, 2007. On February 19, 2008, we time-chartered its sister ship, the S.A. Sederberg for a period of 12 months. On January 25, 2008, the third 30 year old sister ship to the above mentioned vessels, the S.A Winterberg was sold to an unrelated third party resulting in a net gain of approximately $5.0 million. Further, we re-chartered the 30 year old Eagle Express for 26 months and the Pacific Bridge for 24 months, both at accretive rates. All the above vessels have been chartered to major international liner companies.

On January 15, 2008, the Company sold the APL Belgium to APL following the exercise of APL's call for this vessel. The sale consideration was $44.5 million resulting in a net gain of approximately US$ 0.9 million.

On January 18, 2008, we entered into an agreement to acquire three 1998 built, 2,200 TEU containerships for an aggregate price of approximately $90 million. These vessels, the Hyundai Progress, the Hyundai Bridge, and the Hyundai Highway, were built by Hyundai Heavy Industries and are expected to be delivered on March 17 and March 18, 2008, with the first one already delivered on February 11, 2008. The acquisition is financed through our existing credit facilities and funds from operations. All three vessels have ten year long charters arranged with Hyundai Merchant.

On February 11, 2008 the Company acquired a 2,200 TEU vessel M/V Hyundai Progress, built in 1998 for $30.4 million. The vessel has already been time-chartered out for 10 years to Hyundai Merchant Marine.

Conference Call and Webcast

On Tuesday, March 11, 2008 at 10:00 A.M. EDT, 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: 1 866 819 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." 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." A telephonic replay of the conference call will be available until March 17, 2008 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 36 containerships aggregating 145,318 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 36 additional containerships aggregating 247,868 TEU with scheduled deliveries up to 2011. The company's shares trade on the New York Stock Exchange under the symbol "DAC."

Forward-Looking Statement

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, 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, 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 105 off-hire days in total in the fourth quarter. The following tables summarize vessel utilization and the impact of the off-hire days on the company's revenue relating to the last four quarters.


                                First   Second    Third   Fourth   Totals
                               Quarter  Quarter  Quarter  Quarter
                                 2007     2007     2007     2007

                               -------  -------  -------  -------  -------
Vessel utilization             No. of   No. of   No. of   No. of   No. of
                                Days     Days     Days     Days     Days

                               -------  -------  -------  -------  -------

Ownership days continuing ops    2,786    2,813    2,861    3,324   11,784
Ownership days discontinuing
 ops                               254       30        0        0      284
Less Off-hire Days:
Scheduled Drydocking
 continuing ops                    (63)     (46)     (49)     (81)    (239)
        Other off- hire Days
         continuing ops             (3)     (16)       0      (24)     (43)
        Other off- hire Days
         discontinuing ops           0       (2)       0        0       (2)
Operating Days continuing ops    2,720    2,751    2,812    3,219   11,502
Operating Days discontinuing
 ops                               254       28        0        0      282
                               =======  =======  =======  =======  =======
Vessel Utilization continuing
 ops                              97.6%    97.8%    98.3%    96.9%    97.6%
                               =======  =======  =======  =======  =======
Vessel Utilization
 discontinuing ops               100.0%    93.3%    98.3%    96.9%    99.3%
                               =======  =======  =======  =======  =======

                                First   Second    Third   Fourth   Totals
                               Quarter  Quarter  Quarter  Quarter
                                 2007     2007     2007     2007
                               -------  -------  -------  -------  -------
Revenue - Impact of Off-hire
  (in '000s of US dollars)     Revenue  Revenue  Revenue  Revenue  Revenue

                               -------  -------  -------  -------  -------
100% fleet utilization
 continuing ops                 63,593   64,231   63,698   72,006  263,528
100% fleet utilization
 discontinuing ops               5,547      993        0        0    6,540
Less Off-hire Days:
Scheduled Drydocking
 continuing ops                 (1,463)  (1,061)  (1,055)     (46)  (3,625)
        Other off- hire Days
         continuing ops           (102)    (331)       0     (625)  (1,058)
        Other off- hire Days
         discontinuing ops           0      (25)       0        0      (25)
                               =======  =======  =======  =======  =======
Actual Revenue Earned
 continuing ops                 62,028   62,839   62,643   71,335  258,845
                               =======  =======  =======  =======  =======
Actual Revenue Earned
 discontinuing ops               5,547      968        0        0    6,515
                               =======  =======  =======  =======  =======


Fleet List

The following table describes in detail our current fleet deployment profile.





                                          Vessel
                                           Size     Year     Expiration of
Vessel Name                               (TEU)     Built      Charter(1)
--------------------                     --------  -------  --------------
Containerships
--------------------
CSCL Pusan                                  9,580     2006  September 2018
CSCL Le Havre                               9,580     2006   November 2018
MSC Baltic                                  8,468     2004   November 2016
CSCL Europe                                 8,468     2004     August 2016
Maersk Marathon                             4,814     1991   December 2011
Maersk Messologi                            4,814     1991   December 2011
Maersk Mytilini                             4,814     1991   December 2011
Hyundai Commodore                           4,651     1992        May 2011
Hyundai Duke                                4,651     1992      April 2011
MOL Confidence                              4,651     1994   November 2012
YM Colombo                                  4,300     2004        May 2019
YM Singapore                                4,300     2004   December 2019
Maersk Derby                                4,253     2004      April 2009
Maersk Deva                                 4,253     2004      March 2009
YM Seattle                                  4,253     2007  September 2019
YM Vancouver                                4,253     2007   November 2019
Al Rayyan                                   3,908     1989   February 2011
YM Yantian                                  3,908     1989  September 2011
YM Milano                                   3,129     1988      July  2011
S.A.  Helderberg                            3,101     1977   December 2008
CMA CGM Lotus                               3,098     1988     August 2010
CMA CGM Vanille                             3,045     1986     August 2010
CMA CGM Passiflore                          3,039     1986       June 2010
CMA CGM Elbe                                2,917     1991     August 2010
CMA CGM Kalamata                            2,917     1991     August 2010
CMA CGM  Komodo                             2,917     1991     August 2010
Hyundai  Vladivostok                        2,200     1997       July 2017
Hyundai Advance                             2,200     1997     August 2017
Hyundai Stride                              2,200     1997  September 2017
Hyundai Future                              2,200     1997    October 2017
Hyundai Sprinter                            2,200     1997    October 2017
Hyundai Progress                            2,200     1998   February 2018
Pacific Bridge                              2,130     1984        May 2010
MSC Eagle                                   1,704     1978    January 2010
--------------------
Bareboat
Containerships
--------------------
Maersk Constantia                           3,101     1978       June 2008
Sederberg                                   3,101     1978      March 2009



(1)  Earliest date charters could expire. Some charters include options
     to extend their term.

New Deliveries

The following table describes the expected additions to our fleet as a result of our new building containership program as well as the acquisition of two second hand containerships.


                 Vessel    Expected
Vessel Name       Size     Delivery   Expiration
                  (TEU)     Date(1)   of Charter
------------    ---------- ---------- ----------
Newbuildings
------------
HN 1670              4,253  July 2008       2020
HN 1671              4,253 Sept. 2008       2020
HN 1672              4,253  Nov. 2008       2020
HN 1673              4,253  Dec. 2008       2020
HN 1698              4,253  Mar. 2009       2021
HN 1699              4,253  June 2009       2021
HN  S4001(1)         6,500 April 2009       2021
HN  S4002(1)         6,500  June 2009       2021
HN  S4003(1)         6,500  Aug. 2009       2021
HN S4004(1)          6,500  Oct. 2009       2021
HN S4005(1)          6,500  Dec. 2009       2021
HN Z 00001           8,530  June 2010       2022
HN Z 00002           8,530  June 2010       2022
HN Z 00003           8,530  Aug. 2010       2022
HN Z 00004           8,530  Aug. 2010       2022
HN H1022A            8,530 Oct.  2010       2022
HN S-456            12,600  Feb. 2011       2023
HN S-457            12,600 Apr.  2011       2023
HN S-458            12,600  June 2011       2023
HN S-459            12,600  Aug. 2011       2023
HN S-460            12,600 Sept. 2011       2023
HN S-461            10,100  Jan. 2011       2023
HN S-462            10,100  Feb. 2011       2023
HN S-463            10,100  Mar. 2011       2023
HN N-214             6,500  Nov. 2009       2027
HN N-215             6,500  Jan. 2010       2028
HN N-216             6,500  Mar. 2010       2025
HN N-217             6,500   May 2010       2025
HN N-218             6,500  July 2010       2025
HN N-219             3,400  Nov. 2009       2019
HN N-220             3,400  Jan. 2010       2020
HN N-221             3,400  Feb. 2010       2020
HN N-222             3,400  Apr. 2010       2020
HN N-223             3,400   May 2010       2020

                                      Year
Secondhand                            Built
------------                          -----
Hyundai Bridge       2,200   Mar.2008  1998 2018
Hyundai Highway      2,200   Mar.2008  1998 2018


(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
  (Expressed in thousands of United States dollars, except share and per
                              share amounts)


                              Three        Three
                          months ended months ended Year ended  Year ended
                             December    December    December    December
                                31,         31,         31,         31,
                            ----------  ----------  ----------  ----------
                               2007        2006        2007        2006
                            ----------  ----------  ----------  ----------
                            un-audited  (audited)   un-audited  (audited)
OPERATING REVENUES          $   71,335  $   57,748  $  258,845  $  205,177

OPERATING EXPENSES
  Vessel operating expenses    (19,045)    (14,413)    (65,676)    (52,991)
  Depreciation &
   amortization                (13,220)     (9,436)    (46,735)    (31,431)
  General & administrative      (2,695)     (2,034)     (9,955)     (6,413)
  Gain/(loss) on sale of
   vessels                           -           -        (286)          -
  Other operating expenses      (2,106)     (1,854)     (7,499)     (5,568)
                            ----------  ----------  ----------  ----------
Income From Operations          34,269      30,011     128,694     108,774
                            ----------  ----------  ----------  ----------

OTHER EARNINGS (EXPENSES)
  Interest income                1,184       1,069       4,861       3,605
  Interest expense              (7,883)     (5,612)    (22,421)    (23,905)
  Other finance income /
   (cost), net                  (1,193)       (404)     (2,779)      2,049
  Other income /
   (expenses), net              19,087      (1,406)     14,560     (18,476)
  Gain / (loss) on
   derivatives                    (814)        (25)        183      (6,628)
                            ----------  ----------  ----------  ----------
Total Other Income
 (Expenses), net                10,381      (6,378)     (5,596)    (43,355)
                            ----------  ----------  ----------  ----------

Net income from continuing
 operations                 $   44,650  $   23,633  $  123,098  $   65,419
                            ----------  ----------  ----------  ----------
Net income from
 discontinued operations    $       (8) $    6,929  $   92,166  $   35,663
                            ----------  ----------  ----------  ----------
Net Income                  $   44,642  $   30,562  $  215,264  $  101,082
                            ==========  ==========  ==========  ==========

EARNINGS PER SHARE (from
 continuing operations)
Basic and diluted net
 income per share           $     0.82  $     0.44  $     2.26  $     1.40
                            ==========  ==========  ==========  ==========

EARNINGS PER SHARE
Basic and diluted net
 income per share           $     0.82  $     0.57  $     3.95  $     2.16
                            ==========  ==========  ==========  ==========
Basic and diluted weighted
 average number of shares
 (in thousands of shares)       54,558      54,000      54,558      46,751
                            ==========  ==========  ==========  ==========





                            DANAOS CORPORATION
                              Balance Sheets
            (Expressed in thousands of United States dollars)



                                                  As of          As of
                                               December 31,   December 31,
                                              -------------  --------------
                                                  2007           2006
                                              -------------  --------------
                                                un-audited     (audited)
ASSETS
CURRENT ASSETS
  Cash and cash equivalents                   $      63,495  $       43,075
  Restricted cash                                    46,179           2,493
  Accounts receivable, net                            4,321           2,170
  Other current assets                               18,993          11,962
                                              -------------  --------------
                                                    132,988          59,700
NON-CURRENT ASSETS
  Fixed assets, net                               1,182,505       1,016,608
  Advances for vessel acquisitions and
   vessels under construction                       745,534         205,366
  Deferred charges, net                              10,431           9,399
  Fair value of financial instruments                     -           5,832
  Other non-current assets                              333             285
                                              -------------  --------------
                                                  1,938,803       1,237,490

                                              -------------  --------------
TOTAL ASSETS                                  $   2,071,791  $    1,297,190
                                              =============  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
  Long-term debt, current portion             $      25,619  $       22,760
  Accounts payable, accrued liabilities &
   other current liabilities                         24,092          21,488
  Fair value of financial instruments,
   current portion                                    1,402           1,466
                                              -------------  --------------
                                                     51,113          45,714
LONG-TERM LIABILITIES
  Long-term debt, net of current portion          1,330,927         639,556
  Fair value of financial instruments, net of
   current portion                                   56,537           5,775
  Other long-term liabilities                         8,310          40,293
                                              -------------  --------------
                                                  1,395,774         685,624

STOCKHOLDERS' EQUITY
  Common stock                                          546             546
  Additional paid-in capital                        288,530         288,530
  Accumulated other comprehensive income            (54,886)          3,941
  Retained earnings                                 390,714         272,835
                                              -------------  --------------
                                                    624,904         565,852

                                              -------------  --------------
Total liabilities and stockholders' equity    $   2,071,791  $    1,297,190
                                              =============  ==============




                            DANAOS CORPORATION
                         Statements of Cash Flows
            (Expressed in thousands of United States dollars)

                           Three Months Three Months
                               ended       ended     Year ended Year ended
                             December    December     December   December
                                31,         31,         31,         31,
                            ----------  ----------  ----------  ----------
                               2007        2006        2007        2006
                            ----------  ----------  ----------  ----------
                            un-audited  (audited)   un-audited  (audited)
Cash Flows provided by /
 (used in):
Operating Activities:
  Net Earnings              $   44,642  $   30,562  $  215,264  $  101,082
  Adjustments to reconcile
   net income to net cash
   provided by operating
   activities:
  Depreciation                  11,545       9,088      41,093      31,111
  Amortization of deferred
   charges                       1,716       1,699       6,380       5,560
  Written off amount of
   deferred charges                177         278         621         781
  Payments for drydocking /
   special survey               (1,521)     (1,012)     (7,592)     (8,037)
  Change in fair value of
   debt and financial
   instruments                   1,239        (216)        193       5,733
  Gain on sale of vessels            -           -     (88,349)    (14,954)
  Accounts receivable           (3,048)       (387)     (2,151)     (3,034)
  Other assets, current and
   non-current                   2,307       3,205      (7,079)     (1,066)
  Accounts payable and
   accrued  liabilities          4,760       1,275       2,642       5,775
  Other liabilities,
   current and non-current     (17,934)        172      (2,752)     28,627
                            ----------  ----------  ----------  ----------
Cash provided by Operating
 Activities                     43,883      44,664     158,270     151,578
                            ----------  ----------  ----------  ----------

Investing Activities:
  Vessel acquisitions
   including advances         (111,501)   (131,102)   (266,608)   (171,749)
  Vessels under
   construction               (376,514)    (18,966)   (696,752)   (185,148)
  Proceeds from sale of
   vessels                           -           -     275,768      26,798
                            ----------  ----------  ----------  ----------
Cash used in Investing
 Activities                   (488,015)   (150,068)   (687,592)   (330,099)
                            ----------  ----------  ----------  ----------

Financing Activities:
  Debt draw downs              473,000     296,892   1,014,177     434,971
  Debt  repayment               (3,593)   (378,542)   (322,437)   (447,765)
  Paid in capital                    -     201,259           -     201,259
  Dividends paid               (25,369)          -     (97,385)          -
  Deferred costs                   (57)     (1,402)       (927)     (3,100)
  Increase in restricted
   cash                        (11,876)     (2,478)    (43,686)     (1,769)
                            ----------  ----------  ----------  ----------
Cash provided by Financing
 Activities                    432,105     115,729     549,742     183,596
                            ----------  ----------  ----------  ----------

                            ----------  ----------  ----------  ----------
Net change in cash and cash
 equivalents                   (12,027)     10,325      20,420       5,075
                            ----------  ----------  ----------  ----------
Cash and cash equivalents,
 beginning of period            75,522      32,750      43,075      38,000
                            ----------  ----------  ----------  ----------
Cash and cash equivalents,
 end of period              $   63,495  $   43,075  $   63,495  $   43,075
                            ==========  ==========  ==========  ==========


                           Three Months Three Months
                               ended       ended     Year ended Year ended
                             December    December     December   December
                                31,         31,         31,         31,
                            ----------  ----------  ----------  ----------
                               2007        2006        2007        2006
                            ----------  ----------  ----------  ----------
                            un-audited  (audited)   un-audited  (audited)


Reconciliation of Net
 Income to EBITDA
(unaudited)
  Net income                $   44,650  $   23,633  $  123,098  $   65,419
  Depreciation                  11,545       8,189      40,622      27,304
  Amortization of deferred
   charges                       1,675       1,247       6,113       4,127
  Interest income               (1,184)     (1,069)     (4,861)     (3,605)
  Interest expense               7,883       5,612      22,421      23,905
                            ----------  ----------  ----------  ----------
EBITDA (unaudited) (1)
 from continuing operations $   64,569  $   37,612  $  187,393  $  117,150
                            ----------  ----------  ----------  ----------
EBITDA (unaudited) (1)
 from discontinued
 operations                 $       (7) $    8,975  $   93,113  $   46,103
                            ----------  ----------  ----------  ----------
EBITDA (unaudited) (1)      $   64,562  $   46,587  $  280,506  $  163,253
                            ==========  ==========  ==========  ==========


(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