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Danaos Corporation Reports Third Quarter and Nine Month Results and Declares Dividend for the Period Ended September 30, 2007 ATHENS, GREECE--(MARKET WIRE)--Oct 25, 2007 -- Danaos Corporation ("Danaos") (NYSE:DAC - News), a
leading international owner of containerships, today reported
unaudited
results for the third quarter and nine month period ended
September 30,
2007. Highlights for the Third Quarter and Nine Months 2007:
-- Net earnings of $25.5 million or $0.47 per share and $170.6 million or
$3.13 per share for the quarter and nine months respectively
-- Operating Revenues from continuing operations of $62.6 million and
$187.5 million for the quarter and nine months respectively
-- EBITDA of $40.3 million and $215.9 million for the quarter and nine
months respectively
-- Paid dividends of $0.44 per share for the second quarter
-- Increased dividend by approximately 6% and declared dividend for the
third quarter of $0.465 per share payable on November 16, 2007 to all
shareholders of record as of November 2, 2007
Danaos' CEO Dr. John Coustas commented: "We are very pleased with our third quarter and nine months achievements. During the third quarter we continued to successfully implement our strategy. We completed the acquisition of five secondhand 2,200 TEU containerships, all chartered for 10 years, and took delivery of two more panamax size containerships chartered for 12 years each. We have also committed to six newbuildings: one 8,530 TEU containership at Jiangnan Changxing Heavy Industry shipyard where four additional sister ships are being constructed for our account and five 12,600 TEU containerships at Hyundai Heavy Industries ("Samho"). The five Jiangnan Changxing vessels have been committed under 12 year charters to one of the major liners in the world. The five Hyundai Samho vessels will be delivered during the first eight months of 2011 and upon delivery, will commence 12 year charters with one of the largest liner companies in the world. Consequently, Danaos' contracted revenues have increased to approximately $6.5 billion, having arranged for charters for all of our contracted fleet for periods between 10 and 18 years. "During the third quarter the containership market further improved spurred by strong demand in the Far East-Europe and Middle East-India-Far East trades. The lack of available vessels for new charters, especially in the 3,000TEU and above sizes, is likely to result in further market strengthening through the spring of 2008. Weakness in the US housing market contributed to slow growth in the Transatlantic and Transpacific trades which was more than compensated for by growth in the other routes. "Vessel prices have further strengthened on the back of strong new building demand while large containerships above 10,000TEU have been ordered mainly for deliveries during 2011. Our Board of directors has decided to increase the dividend by approximately 6% effective from this quarter. We have therefore declared a dividend of $0.465 per share for the third quarter reflecting our dedication to increase shareholder value through enhanced distributable cash flows, a result of the successful implementation of our growth strategy." Three months ended September 30, 2007 compared to the three months ended September 30, 2006 During the quarter ended September 30, 2007, Danaos had an average of 31.1 containerships as opposed to 26.3 containerships for the same period of 2006. We acquired four vessels, the Hyundai Vladivostok, on July 23, 2007, the Hyundai Advance, on August 20, 2007, the Hyundai Stride, on September 5, 2007 and the YM Seattle, on September 10, 2007. We sold one vessel, the APL Holland, on August 3, 2007. 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. Our net income from continuing operations was $25.5 million or $0.47 per share for the third quarter of 2007 compared to $20.6 million or $0.46 per share for the third quarter of 2006, an increase in net income from continuing operations of 23.8% or $4.9 million. Total net income (including income from discontinued operations) was $25.5 million or $0.47 per share for the third quarter of 2007 compared to $26.1 million or $0.59 per share for the third quarter of 2006, a decrease in net income of 2.3% or $0.6 million. Operating Revenue Operating revenue increased 21.6%, or $11.1 million, to $62.6 million in the quarter ended September 30, 2007, from $51.5 million in the quarter ended September 30, 2006. The increase was primarily attributable to the addition to our fleet of nine vessels, as follows: Vessel Name Vessel Size(TEU) Date Delivered ------------------- --------------- ------------------ CSCL Le Havre 9,580 November 20, 2006 Maersk Marathon 4,814 December 13, 2006 Maersk Messologi 4,814 December 18, 2006 Maersk Mytilini 4,814 December 22, 2006 YM Colombo 4,300 March 12, 2007 Hyundai Vladivostok 2,200 July 23, 2007 Hyundai Advance 2,200 August 20, 2007 Hyundai Stride 2,200 September 5, 2007 YM Seattle 4,253 September 10, 2007 These additions to our fleet collectively contributed revenues of $14.4 million during the three months ended September 30, 2007. Moreover, the CSCL Pusan, a 9,580 TEU containership which was added to our fleet on September 8, 2006, contributed incremental revenues of $2.4 million during the three months ended September 30, 2007 as opposed to the same period in 2006. In addition, the Company sold three vessels: Vessel Name Vessel Size(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 collectively reduced revenue by $6.4 million during the three months ended September 30, 2007, in comparison to the same period in the previous year. Vessel Operating Expenses Vessel operating expenses increased 16.5% or $2.2 million, to $15.5 million in the quarter ended September 30, 2007, from $13.3 million in the quarter ended September 30, 2006. The increase was mainly due to the increase in the average number of our vessels in our fleet during the quarter ended September 30, 2007 compared with the quarter ended September 30, 2006. Depreciation & Amortization Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs. Depreciation Depreciation expense increased 37.7%, or $2.6 million, to $9.5 million in the quarter ended September 30, 2007, from $6.9 million in the quarter ended September 30, 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 cost of such additional vessels as compared with those sold during the 12 months ended September, 30 2007. Amortization of Deferred Dry-docking and Special Survey Costs Amortization of deferred dry-docking and special survey costs expense increased 60.0%, or $0.6 million, to $1.6 million in the quarter ended September 30, 2007, from $1.0 million in the quarter ended September 30, 2006. The increase was a result of more drydockings for 2007 which were amortized during the three months ended September 30, 2007 as compared to the same period of 2006. General and Administrative Expenses General and administrative expenses increased 66.7%, or $1.0 million, to $2.5 million in the quarter ended September 30, 2007 from $1.5 million in the same quarter of 2006. The increase was mainly a result of public company related expenses which were not applicable in the quarter ended September 30, 2006. Such public company expenses were $0.8 million during the three months ended September 30, 2007. The $0.2 million balance represents increased fees paid to our manager as a results of an increase in the average number of our vessels in our fleet in the third quarter 2007 compared with the third quarter of 2006. Gain/(loss) on sale of vessels Gain/loss on sale of vessels of $0.05 million represents a loss on sale of the containership APL Holland in the quarter ended September 30, 2007. Other Operating Expenses Other Operating Expenses include Voyage Expenses Voyage Expenses Voyage expenses increased $0.8 million to $2.0 million in the quarter ended September 30, 2007, from $1.2 million for the quarter ended September 30, 2006. The increase in voyage expenses was mainly due to commissions paid to our Manager of $0.7 million for the four vessels we acquired and sold during this quarter in accordance with our management contract; no such commissions were paid in the same period in 2006. Interest Expense and Interest Income Interest expense decreased $1.6 million, or 25.0%, to $4.8 million in the quarter ended September 30, 2007, from $6.4 million in the quarter ended September 30, 2006. The decrease in reported interest expense was primarily due to the financing of our extensive new-building program which resulted in capitalizing $6.1 million of interest for the quarter ended September 30, 2007 as opposed to $2.3 million of capitalized interest for the quarter ended September 30, 2006. Interest income increased $0.7 million to $1.1 million in the quarter ended September 30, 2007 from $0.4 million in the quarter ended September 30, 2006 due to increased average bank deposits. EBITDA EBITDA from continuing operations increased $5.8 million, or 16.8%, to $40.3 million in the quarter ended September 30, 2007 from $34.5 million in the quarter ended September 30, 2006. A table with analytical EBITDA calculations reconciling EBITDA to net income can be found at the end of this earnings release. Nine months ended September 30, 2007 compared to the nine months ended September 30, 2006 During the nine months ended September 30, 2007, we had an average of 31.0 containerships in our fleet. During the nine months ended September 30, 2006, we had an average of 25.6 containerships in our fleet. 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 September 30, 2007. 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. Our net income from continuing operations was $78.4 million or $1.44 per share for the nine months ended September 30, 2007 compared to $41.8 million or $0.94 per share for the nine months ended September 30, 2006, an increase in net income from continuing operations of 87.6% or $36.6 million. Total net income (including discontinued operations) was $170.6 million or $3.13 per share for the nine months ended September 30, 2007 compared to $70.5 million or $1.59 per share for the nine months ended September 30, 2006, an increase in net income of 142.0% or $100.1 million. Operating Revenue Operating revenue increased 27.2%, or $40.1 million, to $187.5 million in the nine months ended September 30, 2007, from $147.4 million in the nine months ended September 30, 2006. The increase was mainly a result of the addition to our fleet of nine vessels, as follows: Vessel Name Vessel Size(TEU) Date Delivered ------------------- --------------- ------------------ CSCL Le Havre 9,580 November 20, 2006 Maersk Marathon 4,814 December 13, 2006 Maersk Messologi 4,814 December 18, 2006 Maersk Mytilini 4,814 December 22, 2006 YM Colombo 4,300 March 12, 2007 Hyundai Vladivostok 2,200 July 23, 2007 Hyundai Advance 2,200 August 20, 2007 Hyundai Stride 2,200 September 5, 2007 YM Seattle 4,253 September 10, 2007 These additions to our fleet collectively contributed revenues of $35.6 million during the nine months ended September 30, 2007. Moreover, the CSCL Pusan, a 9,580 TEU containership which was added to our fleet on September 8, 2006, contributed incremental revenues of $8.6 million during the nine months ended September 30, 2007 compared with the same period in 2006. In addition, the Company sold three vessels: Vessel Name Vessel Size(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 $8.6 million during the nine months ended September 30, 2007, compared with the same period in the previous year. Also, certain of our vessels were re-chartered at improved charter rates which contributed approximately $4 million to the operating revenue during the nine months ended September 30, 2007. Vessel Operating Expenses Vessel operating expenses increased 20.7%, or $8.0 million, to $46.6 million in the nine months ended September 30, 2007, from $38.6 million in the nine months ended September 30, 2006. This increase was due to the increase in the average number of containerships in our fleet by 5.4 vessels, (from 25.6 containerships in the nine months ended September 30, 2006 to 31.0 containerships in the nine months ended September 30, 2007), an increase of 21.1%. Depreciation & Amortization Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs. Depreciation Depreciation expense increased 52.4%, or $10.0 million, to $29.1 million in the nine months ended September 30, 2007, from $19.1 million for the nine months ended September 30, 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 cost of such additional vessels as compared with those sold during the nine months ended September, 30 2007. Amortization of Deferred Drydocking and Special Survey Costs Amortization of deferred drydocking and special survey costs expense increased 51.7%, or $1.5 million, to $4.4 million in the nine months ended September 30, 2007, from $2.9 million in the nine months ended September 30, 2006. The increase was mainly a result of more drydockings for 2007 than during the same period of 2006. General and Administrative Expenses General and administrative expenses increased 65.9%, or $2.9 million, to $7.3 million in the nine months ended September 30, 2007 from $4.4 million in the nine months ended September 30, 2006. The increase was mainly a result of public company related expenses which were not applicable in the nine months ended September 30, 2006. Such public company expenses were $2.2 million during the nine months ended September 30, 2007. The $0.7 million balance represents increase fees paid to our Manager as a result of an increase in the average number of our vessels n our fleet in the nine months ended 2007 compared with the nine months ended 2006. Gain/(loss) on sale of vessels Gain/loss on sale of vessels of $0.3 million represents a loss on sale of three containerships for the nine months ended September 30, 2007. Other Operating Expenses Other Operating Expenses include Voyage Expenses Voyage Expenses Voyage expenses increased 50.0%, or $1.8 million, to $5.4 million in the nine months ended September 30, 2007, from $3.6 million for the nine months ended September 30, 2006. The increase in voyage expenses was mainly due to commissions paid to our Manager of $1.4 million for the seven vessels we acquired and sold during the nine months ended September 30, 2007 in accordance with our management contract as opposed to $0.2 million of such commissions for the same period in 2006. Interest Expense and Interest Income Interest expense decreased $3.8 million, or 20.8%, to $14.5 million in the nine months ended September 30, 2007, from $18.3 million in the nine months ended September 30, 2006. The decrease in reported interest expense was primarily due to the financing of our extensive new-building program which resulted in capitalizing $15.7 million of interest for the nine months ended September 30, 2007 as opposed to $5.9 million of capitalized interest for the nine months ended September 30, 2006. Interest income increased $1.2 million, or 48.0%, to $3.7 million in the nine months ended September 30, 2007, from $2.5 million in the nine months ended September 30, 2006, due to increased average bank deposits. EBITDA EBITDA from continuing operations increased $43.3 million, or 54.5%, to $122.8 million in the nine months ended September 30, 2007, from $79.5 million in the nine months ended September 30, 2006. A table with analytical EBITDA calculations reconciling EBITDA to net income can be found at the end of this earnings release. Dividend Payment On July 23, 2007 we declared a dividend of $0.44 per common share for the second quarter of 2007 for all shareholders on record as of August 3, 2007 which was paid on August 17, 2007. On October 22, 2007 the Board of Directors declared a dividend of $0.465 per common share for the third quarter of 2007 payable on November 16, 2007 to all shareholders on record as of November 2, 2007. Recent News During the month of September of 2007 Danaos Corporation entered into an agreement to acquire five 12,600 TEU containerships with staggered delivery dates throughout August 2011. We have already arranged for 12 year fixed rate charter for each of these vessels with one of the largest liner companies. On September 17, 2007 the Company extended its shipbuilding contracts with China Shipbuilding Trading Company, Limited to include one more 8,530 TEU vessel, bringing the total number to five vessels. All five Post Panamax containerships will be built by the Shanghai Jiangnan Changxing Heavy Industry Company Limited and are expected to be delivered to Danaos between August 2010 and February 2011. Danaos has also arranged for a large international liner company to charter all these vessels for 12 years each at accretive rates. On October 2, 2007 the Company acquired a 2,200 TEU vessel M/V Hyundai Future, built in 1997 for $31.0 million. Danaos arranged a 10 year charter with Hyundai Merchant Marine. On October 9, 2007 the Company acquired a 4,300 TEU vessel M/V Norasia Atria, built in 2004 for $61.75 million. The vessel has been chartered for a 12 year charter with Yang Ming Group at a daily rate of $27,800 per day for the first four years and at a daily rate of $26,300 for the remaining period. On October 15, 2007 the Company acquired a 2,200 TEU vessel M/V Hyundai Sprinter, built in 1997 for $31.0 million. Danaos arranged a 10 year charter with Hyundai Merchant Marine. Conference Call and Webcast On Friday, October 26, 2007 at 12:00 P.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). Quote "Danaos" A telephonic replay of the conference call will be available until November 2, 2007 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 147,472 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 32 additional containerships aggregating 217,421 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
AppendixFleet Utilization Danaos had 49 off-hire days in total in the third 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.
Fourth First Second Third
Quarter Quarter Quarter Quarter
2006 2007 2007 2007 Totals
------- ------- ------- ------- -------
No. of No. of No. of No. of No. of
Vessel utilization Days Days Days Days Days
------- ------- ------- ------- -------
Ownership days continuing ops 2,571 2,786 2,813 2,861 11,031
Ownership days discontinued
ops 552 254 30 0 836
Less Off-hire Days:
Scheduled Drydocking
continuing ops (22) (63) (46) (49) (180)
Other off-hire Days
continuing ops (0) (3) (16) 0 (19)
Other off-hire Days
discontinued ops (2) 0 (2) 0 (4)
Operating Days continuing ops 2,549 2,720 2,751 2,812 10,832
Operating Days discontinued
ops 550 254 28 0 832
======= ======= ======= ======= =======
Vessel Utilization continuing
ops 99.1% 97.6% 97.8% 98.3% 98.2%
======= ======= ======= ======= =======
Vessel Utilization
discontinued ops 99.6% 100.0% 93.3% 98.3% 99.5%
======= ======= ======= ======= =======
Fourth First Second Third
Revenue - Impact of Off-hire Quarter Quarter Quarter Quarter
(in '000s of US dollars) 2006 2007 2007 2007 Totals
------- ------- ------- ------- -------
Revenue Revenue Revenue Revenue Revenue
------- ------- ------- ------- -------
100% fleet utilization
continuing ops 58,209 63,594 64,232 63,698 249,733
100% fleet utilization
discontinued ops 11,511 5,547 993 0 18,051
Less Off-hire Days: 0
Scheduled Drydocking
continuing ops (455) (1,463) (1,061) (1,055) (4,034)
Other off-hire Days
continuing ops (6) (102) (331) 0 (439)
Other off-hire Days
discontinued ops (32) 0 (25) 0 (57)
======= ======= ======= ======= =======
Actual Revenue Earned
continuing ops 57,748 62,029 62,840 62,643 245,260
======= ======= ======= ======= =======
Actual Revenue Earned
discontinued ops 11,479 5,547 968 0 17,994
======= ======= ======= ======= =======
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
APL Belgium(2) 5,506 2002 January 2008
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
Maersk Derby 4,253 2004 April 2009
Vancouver Express 4,253 2004 March 2009
YM Seattle 4,253 2007 September 2019
Norasia Hamburg 3,908 1989 March 2008
YM Yantian 3,908 1989 September 2011
YM Milano 3,129 1988 July 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
Pacific Bridge 2,130 1984 September 2008
Eagle Express 1,704 1978 October 2007
------------------
Bareboat
Containerships
------------------
Maersk Constantia 3,101 1978 April 2008
S.A. Helderberg 3,101 1977 December 2007
S.A. Sederberg 3,101 1978 January 2008
S.A. Winterberg 3,101 1978 March 2008
(1) Earliest date charters could expire. Some charters include
options to extend their term.
(2) We have agreed to sell this vessel upon expiration of its
current charter. Under the leading "Expiration of Charter"
we include the expected month of delivery of this vessel
to its new owner.
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 three second hand containerships as of the end of the third quarter of
2007.
Vessel Expected
Size Delivery Expiration
Vessel Name (TEU) Date(1) of Charter
---------------- ------ ---------- ----------
Newbuildings
----------------
HN 1640 4,253 Nov. 2007 2019
HN 1670 4,253 July 2008 2020
HN 1671 4,253 Sept. 2008 2020
HN 1672 4,253 Oct. 2008 2020
HN 1673 4,253 Nov. 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 Aug. 2010 2022
HN Z 00002 8,530 Aug. 2010 2022
HN Z 00003 8,530 Nov. 2010 2022
HN Z 00004 8,530 Nov. 2010 2022
HN H1022A 8,530 Feb. 2011 2023
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 Sep. 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 Jun 2010 2020
Year
Secondhand Built
---------------- -----
Norasia Atria 4,300 Oct.2007 2004 2019
Hyundai Future 2,200 Oct.2007 1997 2017
Hyundai Sprinter 2,200 Oct.2007 1997 2017
(1) Vessel subject to charterer's option to purchase vessel
after first eight years of time charter term for $78.0 million.
DANAOS CORPORATION
Statement of Income
(Expressed in thousands of United States dollars, except per share amounts)
Three Three
months months Nine months Nine months
ended ended ended ended
September September September September
30, 30, 30, 30,
----------- ----------- ----------- -----------
2007 2006 2007 2006
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
OPERATING REVENUES $ 62,643 $ 51,527 $ 187,510 $ 147,429
OPERATING EXPENSES
Vessel operating
expenses (15,543) (13,291) (46,631) (38,578)
Depreciation &
amortization (11,130) (7,948) (33,515) (21,995)
General & administrative (2,450) (1,486) (7,260) (4,379)
Gain/(loss) on sale
of vessels (51) - (286) 0
Other operating expenses (2,030) (1,167) (5,393) (3,714)
----------- ----------- ----------- -----------
Income From Operations 31,439 27,635 94,425 78,763
----------- ----------- ----------- -----------
OTHER EARNINGS
(EXPENSES)
Interest income 1,118 449 3,677 2,536
Interest expense (4,847) (6,430) (14,538) (18,293)
Other finance income
(cost), net (689) (89) (1,586) 2,453
Other income/(expense) (1,568) (740) (4,527) (17,070)
Gain (loss) on
derivatives 41 (272) 997 (6,603)
----------- ----------- ----------- -----------
Total Other Income
(Expenses), net (5,945) (7,082) (15,977) (36,977)
----------- ----------- ----------- -----------
Net income from
continuing operations $ 25,494 $ 20,553 $ 78,448 $ 41,786
----------- ----------- ----------- -----------
Net income from
discontinued
operations $ (3) $ 5,587 $ 92,174 $ 28,734
----------- ----------- ----------- -----------
Net Income $ 25,491 $ 26,140 $ 170,622 $ 70,520
=========== =========== =========== ===========
EARNINGS PER SHARE
(from continuing
operations)
Basic and diluted net
income per share $ 0.47 $ 0.46 $ 1.44 $ 0.94
=========== =========== =========== ===========
Basic and diluted
weighted average
number of shares (in
thousands of shares) 54,558 44,308 54,558 44,308
=========== =========== =========== ===========
EARNINGS PER SHARE
Basic and diluted net
income per share $ 0.47 $ 0.59 $ 3.13 $ 1.59
=========== =========== =========== ===========
Basic and diluted
weighted average
number of shares (in
thousands of shares) 54,558 44,308 54,558 44,308
=========== =========== =========== ===========
DANAOS CORPORATION
Balance Sheets
(Expressed in thousands of United States dollars)
As of As of
September 30, December 31,
------------ ------------
2007 2006
------------ ------------
(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 75,522 $ 43,075
Restricted cash 34,303 2,493
Accounts receivable, net 1,273 2,170
Other current assets 21,279 11,962
------------ ------------
132,377 59,700
NON-CURRENT ASSETS
Vessels 1,027,200 1,016,608
Advances for vessel acquisitions and vessels
under construction 453,638 205,366
Deferred charges, net 10,746 9,399
Fair value of financial instruments 800 5,832
Other assets 354 285
------------ ------------
1,492,738 1,237,490
TOTAL ASSETS $ 1,625,115 $ 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 17,266 21,488
Fair value of financial instruments, current
portion 1,504 1,466
------------ ------------
44,389 45,714
LONG-TERM LIABILITIES
Long-term debt 859,733 639,556
Fair value of financial instruments, net of
current portion 3,839 5,775
Other liabilities 57,579 40,293
------------ ------------
921,151 685,624
STOCKHOLDERS' EQUITY
Common stock 546 546
Additional paid-in capital 288,530 288,530
Other comprehensive income (942) 3,941
Retained earnings 371,441 272,835
------------ ------------
659,575 565,852
Total liabilities and stockholders' equity $ 1,625,115 $ 1,297,190
============ ============
DANAOS CORPORATION
Statement of Cash Flows
(Expressed in thousands of United States dollars)
Three Three
months months Nine months Nine months
ended ended ended ended
September September September September
30, 30, 30, 30,
----------- ----------- ----------- -----------
2007 2006 2007 2006
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
Cash Flows provided
by/(used in):
Operating Activities:
Net Earnings $ 25,491 $ 26,140 $ 170,622 $ 70,520
Adjustments to
reconcile Net
Earnings to Cash from
Operating Activities:
Depreciation 9,530 7,809 29,548 22,023
Amortization of
deferred charges 1,640 1,401 4,664 3,979
Written off amount of
deferred charges 160 126 444 385
Payments for drydocking/
special survey (1,445) (3,083) (6,071) (7,025)
Change in fair value of
debt and financial
instruments 13 (47) (1,046) 5,949
Loss/(Gain) on sale
of vessels 51 - (88,349) (14,954)
Accounts receivable 414 43 897 (2,647)
Other assets short
and long term (3,150) (2,107) (9,386) (4,271)
Accounts payable and
accrued liabilities (938) 2,385 (2,118) 4,500
Other liabilities
short and long term (569) 1,315 15,182 28,455
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Cash provided by
Operating Activities 31,197 33,982 114,387 106,914
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Investing Activities:
Vessel acquisitions
including advances (171,363) (63) (227,098) (40,647)
Vessels under
construction (86,379) (127,299) (248,247) (166,182)
Proceeds from sale of
vessels 44,481 - 275,768 26,798
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Cash (used in)/
provided by Investing
Activities (213,261) (127,362) (199,577) (180,031)
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Financing Activities:
Debt draw downs 305,000 107,704 541,177 138,079
Debt repayment (87,217) (12,767) (318,844) (69,223)
Dividends on common
shares (24,005) - (72,016) 0
Deferred costs - (420) (870) (1,698)
(Increase)/decrease
in restricted cash 7,393 (3) (31,810) 709
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Cash used in Financing
Activities 201,171 95,414 117,637 67,867
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Net change in cash and
cash equivalents 19,107 1,134 32,447 (5,250)
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Cash and cash
equivalents, beginning
of period 56,415 31,616 43,075 38,000
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Cash and cash
equivalents, end
of period $ 75,522 $ 32,750 $ 75,522 $ 32,750
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Three Three
months months Nine months Nine months
ended ended ended ended
September September September September
30, 30, 30, 30,
----------- ----------- ----------- -----------
2007 2006 2007 2006
----------- ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
Reconciliation of Net
Income to EBITDA
(unaudited)
Net income $ 25,494 $ 20,553 $ 78,448 $ 41,786
Depreciation 9,530 6,909 29,077 19,115
Amortization of
deferred charges 1,600 1,039 4,438 2,880
Interest income (1,118) (449) (3,677) (2,536)
Interest expense 4,847 6,430 14,538 18,293
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EBITDA (unaudited) (1)
from continuing
operations $ 40,353 $ 34,482 $ 122,824 $ 79,538
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EBITDA (unaudited) (1)
from discontinued
operations $ (5) $ 8,345 $ 93,120 $ 37,128
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EBITDA (unaudited) (1) $ 40,348 $ 42,827 $ 215,944 $ 116,666
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(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: For further information please contact:
Company Contact:
Dimitri 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
Source: Danaos Corporation
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