-- Net earnings of $31.5 million or $0.58 per share for the first quarter ended March 31, 2008 compared to $23.9 million or $0.44 per share from continuing operations for the respective period of 2007. -- Operating Revenues from continuing operations of $69.9 million for the quarter ended March 31, 2008 compared to $62.0 million for the respective period of 2007. -- EBITDA of $52.0 million for the quarter ended March 31, 2008 compared to $39.3 million from continuing operations for the respective period of 2007. -- Paid dividends of $0.465 per share on February 14, 2008 for the fourth quarter of 2007.
Danaos' CEO Dr. John Coustas commented: "We are very pleased with our first quarter 2008 achievements. During the first quarter we continued to successfully implement our growth strategy. We took delivery of three second-hand 2,200 TEU containerships, each of which has been chartered out for 10 years. Danaos' contracted revenues have increased to approximately $7.3 billion, with charters extending as far as 2028. "We time-chartered the 30 year old Sederberg to CMA-CGM at a fixed one year accretive rate and we sold another 30 year old containership, the Winterberg, to an undisclosed and unrelated third party. We also sold and delivered the APL Belgium to APL following the exercise of the purchase option APL had for this vessel. We incurred a gain on this sale of the above two vessels of $5.6 million. Further, we re-chartered the 30 year old Eagle Express to MSC for two years at accretive rates and we also chartered the Pacific Bridge to Senator lines, a subsidiary of Hanjin Shipping, for two years. "During the first quarter of 2008, the containership market marginally improved due to continued 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, although the increase was lower than the first quarter of 2007. The lack of available vessels for new charters, especially in the 3,000 TEU and above sizes, explains our success in re-chartering 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 2008. However, vessel demand keeps strong due to the slow steaming that is increasingly becoming a practice due to the sustainable high oil prices. In our industry asset backed borrowing and long charters have supported further extension of loans by the credit institutions despite the overall market turmoil. During the first quarter we secured a further $560 million in long term debt at very competitive terms and at an overall cost of 67bps over LIBOR to finance our growth. "Vessel prices during the first quarter of 2008 have further strengthened as a result of strong new building demand for large containerships, significant increases in commodity prices and further dollar weakness. 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 April, our board of directors declared a dividend of $0.465 per share for the first quarter, which will be paid on May 14, 2008. The dividend reflects our dedication to increase shareholder value through enhanced distributable cash flows, resulting from the successful implementation of our growth strategy." Three months ended March 31, 2008 compared to the three months ended March 31, 2007 During the quarter ended March 31, 2008, Danaos had an average of 36.3 containerships as opposed to 31.0 containerships for the same period of 2007. During the quarter, we acquired three vessels, the Hyundai Progress on February 11, 2008, the Hyundai Highway on March 18, 2008 and the Hyundai Bridge on March 20, 2008. In addition, we sold two vessels, the APL Belgium on January 15, 2008 and the Winterberg on January 25, 2008. 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 management and discussion analysis solely reflects results from continuing operations (containerships), unless otherwise noted. Our net income was $31.5 million or $0.58 per share for the first quarter of 2008 compared to $23.9 million or $0.44 per share for the first quarter of 2007, an increase in net income of 31.8% or $7.6 million. Earnings per share, excluding the gain on sale of vessels of $5.6 million, was $0.48 for the first quarter of 2008. Distributable cash flow, defined as net income before depreciation & amortization, less payments for drydocking and special survey costs, was $41.7 million for the first quarter of 2008. Stockholders' Equity decreased by $118.3 million mainly as a result of the decrease in Accumulated other comprehensive income, a non cash item, by $124.5 million due to the decrease in the fair value of interest rate swaps used to hedge our exposure to our floating interest rate debt. We declared a dividend of $25.4 million which represents 60.9% of our distributable cash flow for the first quarter of 2008. Operating Revenue Operating revenue increased 12.7%, or $7.9 million, to $69.9 million in the quarter ended March 31, 2008 from $62.0 million in the quarter ended March 31, 2007. The increase was primarily attributable to the addition to our fleet of 11 vessels, as follows:
Vessel Size Vessel Name (TEU) Date Delivered ----------- ------------ ------------------ 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 Hyundai Progress 2,200 February 11, 2008 Hyundai Highway 2,200 March 18, 2008 Hyundai Bridge 2,200 March 20, 2008These additions to our fleet contributed revenues of $15.6 million during the three months ended March 31, 2008. Moreover, a 4,300 TEU containership, the YM Colombo which was added to our fleet on March 12, 2007, contributed incremental revenues of $1.9 million during the three months ended March 31, 2008 compared to the same period in 2007. In addition, the Company sold five 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 APL Belgium 5,506 January 15, 2008 Winterberg 3,101 January 25, 2008The vessel sales reduced operating revenue by $9.2 million during the three months ended March 31, 2008, in comparison to the same period in the previous year. The balance of $0.4 million is attributed to more scheduled off-hire days, partially offset by higher charter rates achieved due to the re-chartering of certain vessels. During the first quarter of 2008 our fleet utilization reached 95%, reflecting additional drydocking days for certain of our older vessels including those above 30 years of age, which we re-chartered during this quarter. Vessel Operating Expenses Vessel operating expenses increased 29.4% or $4.5 million, to $19.8 million in the quarter ended March 31, 2008, from $15.3 million in the quarter ended March 31, 2007. The increase was mainly due to the increase in the average number of our vessels in our fleet and a general increase in costs experienced by the overall industry during the quarter ended March 31, 2008 compared to the quarter ended March 31, 2007. Depreciation & Amortization Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs. Depreciation Depreciation expense increased 20.4%, or $2.0 million, to $11.8 million in the quarter ended March 31, 2008, from $9.8 million in the quarter ended March 31, 2007. The increase in depreciation expense was due to the increased average number of vessels in our fleet during the quarter ended March 31, 2008, compared to the same period of 2007. Amortization of Deferred Dry-docking and Special Survey Costs Amortization of deferred dry-docking and special survey costs expense increased 14.3%, or $0.2 million, to $1.6 million in the quarter ended March 31, 2008, from $1.4 million in the quarter ended March 31, 2007. The increase reflects higher drydocking costs over the course of the last twelve months, which were subject to amortization during the three months ended March 31, 2008 as compared to the same period of 2007. General and Administrative Expenses General and administrative expenses increased 27.3%, or $0.6 million, to $2.8 million in the quarter ended March 31, 2008, from $2.2 million in the same quarter of 2007. The increase was mainly a result of increased fees of $0.3 million paid to our Manager in the first quarter 2008 compared to the same period of 2007 based on an increase in the average number of our vessels in our fleet. Moreover, public company related costs were higher in the quarter ended March 31, 2008 compared with the quarter ended March 31, 2007 by $0.3 million. Gain / (loss) on sale of vessels The gain on sale of vessels for the period ended March 31, 2008, reflects the sale of the APL Belgium and the Winterberg for $44.5 million and $11.2 million respectively, resulting in a gain of $5.6 million over the depreciated book value of these vessels at the time of their sale. Other Operating Expenses Other Operating Expenses include Voyage Expenses Voyage Expenses Voyage expenses decreased 11.1% or $0.2 million, to $1.6 million in the quarter ended March 31, 2008, from $1.8 million for the quarter ended March 31, 2007. Interest Expense and Interest Income Interest expense increased 49.1%, or $2.7 million, to $8.2 million in the quarter ended March 31, 2008, from $5.5 million in the quarter ended March 31, 2007. The change in interest expense was primarily due to the increase in our average indebtedness by 114.3%. This resulted in an increase in interest of approximately $10.1 million, partially offset by the financing of our extensive new-building program which resulted in interest capitalization of $10.2 million for the quarter ended March 31, 2008 as opposed to $2.8 million of capitalized interest for the quarter ended March 31, 2007. Interest income decreased by $0.2 million, to $1.1 million in the quarter ended March 31, 2008, from $1.3 million in the quarter ended March 31, 2007. The decrease in interest income is mainly attributable to lower interest rates, partially offset by higher average bank deposits during the three months ended March 31, 2008 as opposed to the three months ended March 31, 2007. Other income/(expenses), net Other income (expenses) increased by $2.5 million, to $(0.3) million for the quarter ended March 31, 2008, from $(2.8) million in the quarter ended March 31, 2007. The increase was mainly due to a non recurring loss of $2.6 million for the first quarter of 2007 attributable to an adjustment on the fair value of our debt in JPY currency. EBITDA EBITDA from continuing operations increased by $12.7 million, or 32.3%, to $52.0 million in the quarter ended March 31, 2008, from $39.3 million in the quarter ended March 31, 2007. A table reconciling EBITDA to net income can be found at the end of this earnings release. Dividend Payment On January 23, 2008, we declared a dividend of $0.465 per common share for the fourth quarter of 2007 for all shareholders of record as of January 30, 2008, which was paid on February 14, 2008. On April 18, 2008 the Board of Directors declared a dividend of $0.465 per common share for the first quarter of 2008 payable on May 14, 2008 to all shareholders of record as of April 30, 2008. Recent News During the first months of 2008 Danaos Corporation has entered into three credit agreements for term loan facilities in the total amount of $560 million to finance part of its new-building program. The facilities have been fully underwritten by Credit Swiss, Deutsche Bank and Emporiki Bank, a subsidiary of Credit Agricole at a weighted average rate of 0.67% over LIBOR. Conference Call and Webcast 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 April 29, 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 38 containerships aggregating 149,718 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 34 additional containerships aggregating 243,468 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 160 off-hire days in total in the first quarter of 2008. 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. Second Third Fourth First Quarter Quarter Quarter Quarter 2007 2007 2007 2008 Totals ------- ------- ------- ------- ------- No. of No. of No. of No. of No. of Vessel utilization Days Days Days Days Days ------- ------- ------- ------- ------- Ownership days continuing ops 2,813 2,861 3,324 3,301 12,299 Ownership days discontinuing ops 30 0 0 0 30 Less Off-hire Days: Scheduled Drydocking continuing ops (46) (49) (81) (159) (335) Other off-hire Days continuing ops (16) 0 (24) (1) (41) Other off-hire Days discontinuing ops (2) 0 0 0 (2) Operating Days continuing ops 2,751 2,812 3,219 3,141 11,923 Operating Days discontinuing ops 28 0 0 0 28 ======= ======= ======= ======= ======= Vessel Utilization continuing ops 97.8% 98.3% 96.8% 95.2% 96.9% ======= ======= ======= ======= ======= Vessel Utilization discontinuing ops 93.3% - - - 93.3% ======= ======= ======= ======= ======= Second Third Fourth First Quarter Quarter Quarter Quarter 2007 2007 2007 2008 Totals ------- ------- ------- ------- ------- Revenue - Impact of Off-hire (in '000s of US dollars) Revenue Revenue Revenue Revenue Revenue ------- ------- ------- ------- ------- 100% fleet utilization continuing ops 64,231 63,698 72,006 70,689 270,624 100% fleet utilization discontinuing ops 993 0 0 0 993 Less Off-hire Days: Scheduled Drydocking continuing ops (1,061) (1,055) (46) (796) (2,958) Other off-hire Days continuing ops (331) 0 (625) (16) (972) Other off-hire Days discontinuing ops (25) 0 0 0 (25) ======= ======= ======= ======= ======= Actual Revenue Earned continuing ops 62,839 62,643 71,335 69,877 266,694 ======= ======= ======= ======= ======= Actual Revenue Earned discontinuing ops 968 0 0 0 968 ======= ======= ======= ======= ======= 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 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 Maersk Marathon 4,814 1991 September 2011 Maersk Messologi 4,814 1991 September 2011 Maersk Mytilini 4,814 1991 September 2011 MOL Affinity(2) 4,651 1992 March 2011 Hyundai Duke 4,651 1992 February 2011 MOL Confidence 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 Maersk Derby 4,253 2004 February 2009 Maersk Deva 4,253 2004 January 2009 Al Rayyan 3,908 1989 January 2011 YM Yantian 3,908 1989 July 2011 YM Milano 3,129 1988 May 2011 SA Helderberg 3,101 1977 November 2008 Sederberg 3,101 1978 January 2009 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 (3) 2,130 1984 March 2010 MSC Eagle 1,704 1978 January 2010 ----------------------- Bareboat Containerships ----------------------- Maersk Constantia 3,101 1979 September 2008 (1) Earliest date charters could expire. Some charters include options to extend their term. (2) On April 15, 2008, the Hyundai Commodore was renamed to MOL Affinity at the request of the charterer of this vessel. (3) 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 as well as the acquisition of two second hand containerships. Vessel Size Vessel Name (TEU) Expected Delivery ----------- -------- -------------------- HN 1670 4,253 July 2008 HN 1671 4,253 September 2008 HN 1672 4,253 November 2008 HN 1673 4,253 December 2008 HN 1698 4,253 March 2009 HN S4001(1) 6,500 April 2009 HN 1699 4,253 June 2009 HN S4002(1) 6,500 June 2009 HN S4003(1) 6,500 August 2009 HN S4004(1) 6,500 October 2009 HN N-214 6,500 November 2009 HN N-219 3,400 November 2009 HN S4005(1) 6,500 December 2009 HN N-220 3,400 January 2010 HN N-215 6,500 January 2010 HN N-221 3,400 February 2010 HN N-216 6,500 March 2010 HN N-222 3,400 April 2010 HN N-223 3,400 May 2010 HN N-217 6,500 May 2010 HN Z00001 8,530 May 2010 HN Z00002 8,530 May 2010 HN Z00003 8,530 July 2010 HN Z00004 8,530 July 2010 HN N-218 6,500 July 2010 HULL 1022A 8,530 September 2010 Hull No S-461 10,100 January 2011 Hull No S-462 10,100 February 2011 Hull No S-456 12,600 February 2011 Hull No S-463 10,100 March 2011 Hull No S-457 12,600 April 2011 Hull No S-458 12,600 June 2011 Hull No S-459 12,600 August 2011 Hull No S-460 12,600 September 2011 (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 March 31, March 31, ----------- ----------- 2008 2007 ----------- ----------- (unaudited) (unaudited) OPERATING REVENUES $ 69,877 $ 62,028 OPERATING EXPENSES Vessel operating expenses (19,810) (15,304) Depreciation & amortization (13,369) (11,171) General & administrative (2,813) (2,194) Gain / (loss) on sale of vessels 5,582 (206) Other operating expenses (1,636) (1,754) ----------- ----------- Income From Operations 37,831 31,399 ----------- ----------- OTHER EARNINGS (EXPENSES) Interest income 1,086 1,264 Interest expense (8,172) (5,476) Other finance cost, net (425) (561) Other income / (expenses), net (293) (2,827) Gain on derivatives 1,490 107 ----------- ----------- Total Other Income (Expenses), net (6,314) (7,493) ----------- ----------- Net income from continuing operations $ 31,517 $ 23,906 ----------- ----------- Net income from discontinued operations $ 5 $ 76,460 ----------- ----------- Net Income $ 31,522 $ 100,366 =========== =========== EARNINGS PER SHARE (from continuing operations) Basic and diluted net income per share $ 0.58 $ 0.44 =========== =========== EARNINGS PER SHARE Basic and diluted net income per share $ 0.58 $ 1.84 =========== =========== Basic and diluted weighted average number of shares (in thousands of shares) 54,558 54,558 =========== =========== DANAOS CORPORATION Balance Sheets (Expressed in thousands of United States dollars) As of As of March 31, December 31, ----------- ----------- 2008 2007 ----------- ----------- (unaudited) (unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 63,715 $ 63,495 Restricted cash 41,207 46,179 Accounts receivable, net 2,967 4,321 Other current assets 21,829 18,993 ----------- ----------- 129,718 132,988 NON-CURRENT ASSETS Fixed assets, net 1,198,387 1,182,505 Advances for vessel acquisitions and vessels under construction 882,814 745,534 Deferred charges, net 12,694 10,431 Other non-current assets 3,212 333 ----------- ----------- 2,097,107 1,938,803 ----------- ----------- TOTAL ASSETS $ 2,226,825 $ 2,071,791 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Long-term debt, current portion $ 25,619 $ 25,619 Accounts payable, accrued liabilities & other current liabilities 27,512 24,092 Fair value of financial instruments, current portion 1,326 1,402 ----------- ----------- 54,457 51,113 LONG-TERM LIABILITIES Long-term debt, net of current portion 1,478,894 1,330,927 Fair value of financial instruments, net of current portion 179,148 56,537 Other long-term liabilities 7,768 8,310 ----------- ----------- 1,665,810 1,395,774 STOCKHOLDERS' EQUITY Common stock 546 546 Additional paid-in capital 288,530 288,530 Accumulated other comprehensive income (179,385) (54,886) Retained earnings 396,867 390,714 ----------- ----------- 506,558 624,904 ----------- ----------- Total liabilities and stockholders' equity $ 2,226,825 $ 2,071,791 =========== =========== DANAOS CORPORATION Statements of Cash Flows (Expressed in thousands of United States dollars) Three Three months ended months ended March 31, March 31, ----------- ----------- 2008 2007 ----------- ----------- (unaudited) (unaudited) Cash Flows provided by / (used in): Operating Activities: Net Earnings $ 31,522 $ 100,366 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 11,759 10,169 Amortization of deferred charges 1,643 1,547 Written off amount of deferred charges 181 284 Payments for drydocking / special survey (3,184) (1,858) Change in fair value of debt and financial instruments (1,781) 2,409 Gain / (Loss) on sale of vessels (5,582) (72,696) Accounts receivable 1,354 (691) Other assets, current and non-current (2,727) (6,925) Accounts payable and accrued liabilities 2,911 (3,421) Other liabilities, current and non-current (33) (2,017) ----------- ----------- Cash provided by Operating Activities 36,063 27,167 ----------- ----------- Investing Activities: Vessel acquisitions including advances (76,240) (55,751) Vessels under construction (137,280) (57,580) Proceeds from sale of vessels 54,457 161,487 ----------- ----------- Cash (used in) / provided by Investing Activities (159,063) 48,156 ----------- ----------- Financing Activities: Debt draw downs 185,013 121,500 Debt repayment (40,217) (182,358) Dividends paid (25,369) (24,005) Deferred costs (1,179) (500) Increase in restricted cash 4,972 2,471 ----------- ----------- Cash provided by / (used in) Financing Activities 123,220 (82,892) ----------- ----------- ----------- ----------- Net change in cash and cash equivalents 220 (7,569) ----------- ----------- Cash and cash equivalents, beginning of period 63,495 43,075 ----------- ----------- Cash and cash equivalents, end of period $ 63,715 $ 35,506 =========== =========== Reconciliation of Net Income to EBITDA Three Three months ended months ended March 31, March 31, ----------- ----------- 2008 2007 ----------- ----------- (unaudited) (unaudited) Net income $ 31,517 $ 23,906 Depreciation 11,759 9,751 Amortization of deferred charges 1,610 1,420 Interest income (1,086) (1,264) Interest expense 8,172 5,476 ----------- ----------- EBITDA (unaudited) (1) from continuing operations $ 51,972 $ 39,289 ----------- ----------- EBITDA (unaudited) (1) from discontinued operations $ 5 $ 77,336 ----------- ----------- EBITDA (unaudited) (1) $ 51,977 $ 116,625 =========== =========== (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 Contacts: 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