ATHENS, GREECE--(Marketwired - Oct 29, 2014) - Danaos Corporation ("Danaos") (
Highlights for the Third Quarter and Nine Months Ended September 30, 2014:
- Operating revenues of $139.5 million for the three months ended September 30, 2014 compared to $148.4 million for the three months ended September 30, 2013, a decrease of 6.0%. Operating revenues of $411.4 million for the nine months ended September 30, 2014 compared to $441.1 million for the nine months ended September 30, 2013, a decrease of 6.7%.
- Adjusted EBITDA1 of $104.1 million for the three months ended September 30, 2014 compared to $109.5 million for the three months ended September 30, 2013, a decrease of 4.9%. Adjusted EBITDA1 of $299.5 million for the nine months ended September 30, 2014 compared to $325.5 million for the nine months ended September 30, 2013, a decrease of 8.0%.
- Adjusted net income1 of $18.0 million, or $0.16 per share, for the three months ended September 30, 2014 compared to $13.4 million, or $0.12 per share, for the three months ended September 30, 2013. Adjusted net income1 of $36.6 million, or $0.33 per share, for the nine months ended September 30, 2014 compared to $39.1 million, or $0.36 per share, for the nine months ended September 30, 2013.
- The remaining average charter duration of our fleet was 8.2 years as of September 30, 2014 (weighted by aggregate contracted charter hire).
- Total contracted operating revenues were $3.8 billion as of September 30, 2014, through 2028.
- Charter coverage of 93% for the next 12 months in terms of contracted operating days and 98% in terms of operating revenues.
| Three and Nine Months Ended September 30, 2014 | ||||||||||||
| Financial Summary | ||||||||||||
| (Expressed in thousands of United States dollars, except per share amounts) | ||||||||||||
| Three months ended September 30, |
Three months ended September 30, |
Nine months ended September 30, |
Nine months ended September 30, |
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| 2014 | 2013 | 2014 | 2013 | |||||||||
| (unaudited) | ||||||||||||
| Operating revenues | $ | 139,496 | $ | 148,448 | $ | 411,422 | $ | 441,116 | ||||
| Net income | $ | 22,406 | $ | 8,788 | $ | 47,456 | $ | 41,759 | ||||
| Adjusted net income1 | $ | 18,020 | $ | 13,402 | $ | 36,592 | $ | 39,083 | ||||
| Earnings per share | $ | 0.20 | $ | 0.08 | $ | 0.43 | $ | 0.38 | ||||
| Adjusted earnings per share1 | $ | 0.16 | $ | 0.12 | $ | 0.33 | $ | 0.36 | ||||
| Weighted average number of shares (in thousands) | 109,669 | 109,653 | 109,669 | 109,653 | ||||||||
| Adjusted EBITDA1 | $ | 104,144 | $ | 109,473 | $ | 299,511 | $ | 325,459 | ||||
1 Adjusted net income, adjusted earnings per share and adjusted EBITDA are non-GAAP measures. Refer to the reconciliation of net income to adjusted net income and net income to adjusted EBITDA.
Danaos' CEO Dr. John Coustas commented:
Danaos is reporting a solid third quarter with adjusted net income of $18 million, or 16 cents per share, which is higher by $4.6 million or 34% when compared to the $13.4 million, or 12 cents per share of adjusted net income for the 3rd quarter of 2013. The Company's profitability improved between the 2 quarters through a $9.4 million improvement in financing costs together with a $4.1 million improvement in operating costs, despite a decrease in operating revenues. The decline in operating revenues between the 2 quarters mainly reflects $4.7 million related to softer charter market conditions and $4.2 million attributable to the reduced charter hire on six of our vessels following the previously announced restructuring of Zim.
The reduction in finance costs is expected to continue in the coming quarters as we reduce leverage and benefit from the expiration of expensive interest rate swaps. Total debt repayments in 2014 will reach $221.5 million and swap expirations will exceed $1 billion in notional terms.
Executing on our fleet renewal program, during the first half of the year we sold three 4,814 TEU vessels and two 4,651 TEU vessels with an average age of 23 years, while on October 14, 2014 we entered into an agreement for the purchase of two 6,402 TEU containerships built in 2002.
The container market demand / supply fundamentals have remained weak and all metrics inevitably lead to the conclusion that 2014 will be a sluggish year. As the super post panamaxes continue to be delivered and deployed in the Europe - Far East route, the capacity being cascaded inevitably creates over-capacity in the remaining routes, adversely affecting box freight rates and charter rates. Demand is not helping either as world GDP growth recent downward revisions will further delay recovery in the container trade. On the other hand, the Panamax sector which has suffered the most in this prolonged soft market, has seen signs of recovery during the 3rd quarter mainly as a result of the increased scrapping of vessels between 3,000 to 5,000 TEU that has been taking place over the last 18-24 months.
Despite the soft charter market, with 98% charter coverage for the next 12 months in terms of operating revenues we are substantially insulated from market volatility and the timing of any recovery. Additionally, our $5,611 daily operating cost for the 3rd quarter clearly positions us as one of the most efficient operators in the industry.
We will continue our efforts to de-lever our balance sheet, manage our fleet efficiently and capitalize on the resilience of our business model towards creating value for our shareholders.
Three months ended September 30, 2014 compared to the three months ended September 30, 2013
During the three months ended September 30, 2014, Danaos had an average of 54.0 containerships compared to 61.0 containerships for the three months ended September 30, 2013. Our fleet utilization increased to 99.5% in the three months ended September 30, 2014 compared to 94.8% in the three months ended September 30, 2013, mainly due to the sale of a number of our older vessels certain of which were off-charter and laid-up during the three months ended September 30, 2013.
Our adjusted net income was $18.0 million, or $0.16 per share, for the three months ended September 30, 2014 compared to $13.4 million, or $0.12 per share, for the three months ended September 30, 2013. We have adjusted our net income in the three months ended September 30, 2014 for unrealized gains on derivatives of $9.1 million and a non-cash expense of $4.7 million for fees related to our comprehensive financing plan (comprised of non-cash, amortizing and accrued finance fees). Please refer to the Adjusted Net Income reconciliation table, which appears later in this earnings release.
The increase of 34.3%, or $4.6 million, in adjusted net income for the three months ended September 30, 2014 compared to the three months ended September 30, 2013, was attributed to a reduction of $4.1 million in total fleet operating costs and a $9.4 million reduction in net finance costs (mainly due to lower debt balances and interest rate swap expirations), which was partially offset by a $4.2 million reduction in operating revenues as a result of reduced rates for six 4,253 TEU vessels on charter to Zim following the Zim restructuring, as well as a $4.7 million net decrease in operating revenues mainly attributed to lower re-chartering rates for certain of our vessels as a result of the continuing soft charter market and vessels sold that were generating revenue in the three months ended September 30, 2013 partially offset by vessels acquired subsequent to September 30, 2013 that were generating revenue in the three months ended September 30, 2014.
On a non-adjusted basis our net income was $22.4 million, or $0.20 per share, for the three months ended September 30, 2014, compared to net income of $8.8 million, or $0.08 per share, for the three months ended September 30, 2013.
As of July 16, 2014, ZIM and its creditors entered into definitive documentation effecting ZIM's restructuring with its creditors on substantially the same terms as the agreement in principle previously announced by ZIM in January 2014. The terms of the restructuring include a reduction in the charter rates payable by ZIM under its time charters, expiring in 2020 or 2021, for six of our vessels, which had already been implemented beginning in January 2014. The terms also include our receipt of approximately $49.9 million aggregate principal amount of unsecured, interest bearing ZIM notes maturing in 2023 (consisting of $8.8 million of 3% Series 1 Notes due 2023 amortizing subject to available cash flow in accordance with a corporate cash sweep mechanism, and $41.1 million of 5% Series 2 Notes due 2023 non-amortizing (of the 5% interest rate, 3% is payable in cash and 2% is payable in kind, accrued quarterly with deferred cash payment on maturity)) and ZIM shares representing approximately 7.4% of the outstanding ZIM shares immediately after the restructuring, in exchange for such charter rate reductions and cancellation of ZIM's other obligations to us which relate to the outstanding long term receivable as of December 31, 2013. As of July 16, 2014, we recorded at fair value $6.1 million in relation to the Series 1 Notes, $30.1 million in relation to the Series 2 Notes and $28.7 million in relation to our equity participation in ZIM.
As of August 7, 2014, we entered into a new agreement with the lenders under the HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank credit facility in relation to the use of proceeds from the sale of 5 mortgaged vessels (the Marathonas, the Commodore, the Duka, the Mytilini and the Messologi), all of which were sold during the nine months ended September 30, 2014 for an aggregate of $55.2 million gross sale proceeds less sale commissions. In accordance with this agreement, $18.2 million was applied against prepayment of the respective facility on August 18, 2014 while the remaining $37.0 million were deposited in a restricted cash account and can be used to finance the acquisition of new containership vessels no later than December 31, 2014. We will pay the lenders a fee of 25 basis points if any portion of the $37.0 million is used in the acquisition of any replacement vessels. As of September 30, 2014, an amount of $37.0 million was recorded as non-current restricted cash. Pursuant to an agreement we entered into on October 14, 2014 for the purchase of two 6,402 TEU vessels built in 2002, we anticipate to fully utilize this restricted cash for the acquisition of these vessels within the three months ended December 31, 2014.
Operating Revenues
Operating revenues decreased 6.0%, or $8.9 million, to $139.5 million in the three months ended September 30, 2014, from $148.4 million in the three months ended September 30, 2013.
Operating revenues for the three months ended September 30, 2014 reflect:
- $1.7 million of additional revenues in the three months ended September 30, 2014 compared to the three months ended September 30, 2013, $1.6 million of which related to the Niledutch Palanca and the Dimitris C, which were added to our fleet on November 13, 2013 and November 21, 2013, respectively and $0.1 million related to incremental revenues in the three months ended September 30, 2014 of the Amalia C and the MSC Zebra, which were added to our fleet on May 14, 2013 and June 25, 2013, respectively.
- $4.2 million decrease in revenues in the three months ended September 30, 2014 compared to the three months ended September 30, 2013, related to the agreement we entered into with ZIM for a reduction in the charter rates payable by ZIM under the time charters for six of our vessels.
- $3.6 million decrease in revenues in the three months ended September 30, 2014 compared to the three months ended September 30, 2013, related to the Hope, the Kalamata, the Komodo, the Lotus, the Commodore, the Messologi and the Mytilini, which were generating revenues in the three months ended September 30, 2013, but were sold within 2013 and 2014.
- $2.8 million decrease in revenues in the three months ended September 30, 2014 compared to the three months ended September 30, 2013, which was mainly attributable to the rechartering of certain vessels at lower rates between the two quarters as a result of the soft charter market.
Vessel Operating Expenses
Vessel operating expenses decreased 12.7%, or $3.9 million, to $26.8 million in the three months ended September 30, 2014, from $30.7 million in the three months ended September 30, 2013, reflecting lower average daily operating cost per vessel and lower average number of vessels in our fleet in the 2014 period.
The average daily operating cost per vessel decreased to $5,611 per day for the three months ended September 30, 2014, from $5,856 per day for the three months ended September 30, 2013 (excluding vessels on lay-up in 2013), mainly as a result of the sale of the older vessels in our fleet whose contribution in daily operating expenses was higher than the fleet average. Our daily operating cost ranks as one of the most competitive in the industry.
Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.
Depreciation
Depreciation expense decreased 0.9%, or $0.3 million, to $34.4 million in the three months ended September 30, 2014, from $34.7 million in the three months ended September 30, 2013. The decrease in depreciation expense was mainly due to the decreased average number of vessels in our fleet during the three months ended September 30, 2014 compared to the three months ended September 30, 2013.
Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs decreased 15.4%, or $0.2 million, to $1.1 million in the three months ended September 30, 2014, from $1.3 million in the three months ended September 30, 2013. The decrease reflects decreased dry-docking and special survey costs incurred within the year and amortized during the three months ended September 30, 2014 compared to the three months ended September 30, 2013.
General and Administrative Expenses
General and administrative expenses increased 6.1%, or $0.3 million, to $5.2 million in the three months ended September 30, 2014, from $4.9 million in the three months ended September 30, 2013. The increase was mainly due to increased fees of $0.2 million paid to our Manager in the three months ended September 30, 2014 compared to the three months ended September 30, 2013, due to an increase in the per day fee payable to our Manager since January 1, 2014, which was partially offset by a decrease in the average number of vessels in our fleet in the three months ended September 30, 2014 compared to the three months ended September 30, 2013.
Effective January 1, 2014, our management fees were adjusted to a fee of $800 per day for commercial, chartering and administrative services, a technical management fee of $400 per vessel per day for vessels on bareboat charter and $800 per vessel per day for vessels on time charter.
Other Operating Expenses
Other Operating Expenses includes Voyage Expenses
Voyage Expenses
Voyage expenses were $3.1 million in the three months ended September 30, 2014 and 2013, respectively. Effective January 1, 2014, the commission of 1.0% on gross freight, charter hire, ballast bonus and demurrage payable to our manager with respect to each vessel in the fleet was adjusted to a commission of 1.25%. This increase was offset by the decreased average number of vessels in our fleet during the three months ended September 30, 2014 compared to the three months ended September 30, 2013 and resulting decrease in revenues.
Interest Expense and Interest Income
Interest expense decreased by 14.0%, or $3.2 million, to $19.7 million in the three months ended September 30, 2014, from $22.9 million in the three months ended September 30, 2013. The change in interest expense was mainly due to the decrease in our average debt by $209.8 million, to $3,092.4 million in the three months ended September 30, 2014, from $3,302.2 million in the three months ended September 30, 2013, as well as the decrease in the cost of debt servicing in the three months ended September 30, 2014 compared to the three months ended September 30, 2013, mainly driven by the accelerated amortization of our fixed rate debt, which bears a higher cost compared to our floating rate debt.
It has to be noted that we are in a rapid deleveraging mode. As of September 30, 2014, the total debt outstanding was $3,063.2 million compared to $3,283.5 million as of September 30, 2013.
Interest income was $0.9 million in the three months ended September 30, 2014 compared to $0.6 million in the three months ended September 30, 2013.
Other finance costs, net
Other finance costs, net, decreased by $0.1 million, to $5.0 million in the three months ended September 30, 2014, from $5.1 million in the three months ended September 30, 2013. This decrease was due to the $0.1 million decrease in amortizing finance fees (which were deferred and are amortized over the term of the respective credit facilities) in the three months ended September 30, 2014 compared to the three months ended September 30, 2013.
Unrealized gain/(loss) on derivatives
Unrealized gain/(loss) on interest rate swap hedges was a gain of $9.1 million in the three months ended September 30, 2014 compared to a gain of $0.2 million in the three months ended September 30, 2013. The unrealized gains were attributable to mark to market valuation of our swaps, as well as reclassification of unrealized losses from Accumulated Other Comprehensive Loss to our earnings due to the discontinuation of hedge accounting since July 1, 2012.
Realized (loss)/gain on derivatives
Realized loss on interest rate swap hedges, decreased by $6.0 million, to $31.8 million in the three months ended September 30, 2014, from $37.8 million in the three months ended September 30, 2013. This decrease is mainly attributable to the lower average notional amount of swaps during the three months ended September 30, 2014 compared to the three months ended September 30, 2013 as a result of $700 million in swaps' notional expiration between the two quarters.
Adjusted EBITDA
Adjusted EBITDA decreased 4.9%, or $5.4 million, to $104.1 million in the three months ended September 30, 2014, from $109.5 million in the three months ended September 30, 2013. Adjusted EBITDA for the three months ended September 30, 2014, is adjusted for unrealized gain on derivatives of $9.1 million and realized losses on derivatives of $30.8 million. Tables reconciling Adjusted EBITDA to Net Income can be found at the end of this earnings release.
Nine months ended September 30, 2014 compared to the nine months ended September 30, 2013
During the nine months ended September 30, 2014, Danaos had an average of 56.1 containerships compared to 61.6 containerships for the nine months ended September 30, 2013. Our fleet utilization increased to 97.3% in the nine months ended September 30, 2014 compared to 92.8% in the nine months ended September 30, 2013, mainly due to the sale of a number of our older vessels certain of which were off-charter and laid-up. During the nine months ended September 30, 2014 our effective fleet utilization for the fleet under employment was 98.5% (which excludes the vessels on lay-up). During the nine months ended September 30, 2014, we sold five of our older vessels, the Marathonas, the Commodore, the Mytilini, the Duka and the Messologi, for an aggregate amount of $55.2 million (representing the gross sale proceeds less commissions).
Our adjusted net income was $36.6 million, or $0.33 per share, for the nine months ended September 30, 2014 compared to $39.1 million, or $0.36 per share, for the nine months ended September 30, 2013. We have adjusted our net income in the nine months ended September 30, 2014 for unrealized gains on derivatives of $19.3 million, as well as a non-cash expense of $14.2 million for fees related to our comprehensive financing plan (comprised of non-cash, amortizing and accrued finance fees) and a gain on sale of vessels of $5.7 million. Please refer to the Adjusted Net Income reconciliation table, which appears later in this earnings release.
The decrease of 6.4%, or $2.5 million, in adjusted net income for the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013, was attributed to a $16.2 million decrease in operating revenues as a result of reduced rates for six 4,253 TEU vessels on charter to Zim following the Zim restructuring, as well as a $13.5 million net decrease in operating revenues mainly attributed to lower re-chartering rates for certain of our vessels as a result of the continuing soft charter market and vessels sold that were generating revenue in the nine months ended September 30, 2013, partially offset by vessels acquired subsequent to September 30, 2013 that were generating revenue in the nine months ended September 30, 2014. This decrease in operating revenues was also partially offset by a $5.4 million reduction in total fleet operating costs and a $21.8 million reduction in net finance costs mainly due to lower debt balances and interest rate swap expirations.
On a non-adjusted basis our net income was $47.5 million, or $0.43 per share, for the nine months ended September 30, 2014, compared to net income of $41.8 million, or $0.38 per share, for the nine months ended September 30, 2013.
Operating Revenues
Operating revenues decreased 6.7%, or $29.7 million, to $411.4 million in the nine months ended September 30, 2014, from $441.1 million in the nine months ended September 30, 2013.
Operating revenues for the nine months ended September 30, 2014 reflect:
- $7.4 million of additional revenues in the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013, $4.6 million of which related to the Niledutch Palanca and the Dimitris C, which were added to our fleet on November 13, 2013 and November 21, 2013, respectively and $2.8 million related to incremental revenues in the nine months ended September 30, 2014 of the Amalia C and the MSC Zebra, which were added to our fleet on May 14, 2013 and June 25, 2013, respectively.
- $16.2 million decrease in revenues in the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013, related to the agreement we entered into with ZIM for a reduction in the charter rates payable by ZIM under the time charters for six of our vessels.
- $10.5 million decrease in revenues in the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013, related to the Hope, the Kalamata, the Elbe, the Komodo, the Lotus, the Commodore, the Messologi and the Mytilini, which were generating revenues in the nine months ended September 30, 2013, but were sold within 2013 and 2014.
- $10.4 million decrease in revenues in the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013, which was mainly attributable to the rechartering of certain vessels at lower rates between the two periods as a result of the soft charter market.
Vessel Operating Expenses
Vessel operating expenses decreased 6.1%, or $5.6 million, to $86.0 million in the nine months ended September 30, 2014, from $91.6 million in the nine months ended September 30, 2013. The reduction is mainly attributable to decreased average number of vessels in our fleet in the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013, as well as the decrease in the average daily operating cost per vessel in the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013.
The average daily operating cost per vessel (excluding vessels on lay-up) decreased to $5,895 for the nine months ended September 30, 2014, from $5,976 for the nine months ended September 30, 2013, mainly as a result of the sale of the older vessels in our fleet whose contribution in daily operating expenses was higher than the fleet average. Our daily operating cost ranks as one of the most competitive in the industry.
Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.
Depreciation
Depreciation expense decreased 0.3%, or $0.3 million, to $102.5 million in the nine months ended September 30, 2014, from $102.8 million in the nine months ended September 30, 2013. The decrease in depreciation expense was mainly due to the decreased average number of vessels in our fleet during the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013.
Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs decreased 28.9%, or $1.3 million, to $3.2 million in the nine months ended September 30, 2014, from $4.5 million in the nine months ended September 30, 2013. The decrease reflects decreased dry-docking and special survey costs incurred within the year and amortized during the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013.
General and Administrative Expenses
General and administrative expenses increased 8.9%, or $1.3 million, to $15.9 million in the nine months ended September 30, 2014, from $14.6 million in the nine months ended September 30, 2013. The increase was due to increased fees of $0.9 million paid to our Manager in the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013, due to an increase in the per day fee payable to our Manager since January 1, 2014, which was partially offset by a decrease in the average number of vessels in our fleet in the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013.
Gain on sale of vessels
Gain on sale of vessels, was $5.7 million in the nine months ended September 30, 2014 compared to a gain of $0.2 million in the nine months ended September 30, 2013. During the nine months ended September 30, 2014, we sold the Marathonas, the Commodore, the Mytilini, the Duka and the Messologi (on February 26, 2014, April 25, 2014, May 15, 2014, May 15, 2014 and May 20, 2014, respectively) and we realized a net gain on these sales of $5.7 million in aggregate. During the nine months ended September 30, 2013, we sold the Independence, the Henry, the Pride, the Honour and the Elbe (on February 13, 2013, February 28, 2013, March 25, 2013, May 14, 2013 and June 13, 2013, respectively) and we realized a net gain on these sales of $0.1 million in aggregate.
Other Operating Expenses
Other Operating Expenses includes Voyage Expenses
Voyage Expenses
Voyage expenses increased by $0.6 million, to $9.6 million in the nine months ended September 30, 2014, from $9.0 million in the nine months ended September 30, 2013. Effective January 1, 2014, the commission of 1.0% on gross freight, charter hire, ballast bonus and demurrage payable to our manager with respect to each vessel in the fleet was adjusted to a commission of 1.25%. This increase was partially offset by the decreased average number of vessels in our fleet during the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013.
Interest Expense and Interest Income
Interest expense decreased by 11.7%, or $8.1 million, to $61.0 million in the nine months ended September 30, 2014, from $69.1 million in the nine months ended September 30, 2013. The change in interest expense was due to the decrease in our average debt by $200.2 million, to $3,145.7 million in the nine months ended September 30, 2014, from $3,345.9 million in the nine months ended September 30, 2013, as well as the decrease in the cost of debt servicing in the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013, mainly driven by the accelerated amortization of our fixed rate debt, which bears a higher cost compared to our floating rate debt.
Interest income was $0.9 million in the nine months ended September 30, 2014 compared to $1.6 million in the nine months ended September 30, 2013.
Other finance costs, net
Other finance costs, net, decreased by $0.3 million, to $14.9 million in the nine months ended September 30, 2014, from $15.2 million in the nine months ended September 30, 2013. This decrease was mainly due to the $0.3 million decrease in amortizing finance fees (which were deferred and are amortized over the term of the respective credit facilities) in the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013.
Unrealized gain/(loss) on derivatives
Unrealized gain/(loss) on interest rate swap hedges was a gain of $19.3 million in the nine months ended September 30, 2014 compared to a gain of $17.0 million in the nine months ended September 30, 2013. The unrealized gains were attributable to mark to market valuation of our swaps, as well as reclassification of unrealized losses from Accumulated Other Comprehensive Loss to our earnings due to the discontinuation of hedge accounting since July 1, 2012.
Realized (loss)/gain on derivatives
Realized loss on interest rate swap hedges, decreased by $14.5 million, to $97.1 million in the nine months ended September 30, 2014, from $111.6 million in the nine months ended September 30, 2013. This decrease is mainly attributable to the lower average notional amount of swaps during the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013.
Adjusted EBITDA
Adjusted EBITDA decreased 8.0%, or $26.0 million, to $299.5 million in the nine months ended September 30, 2014, from $325.5 million in the nine months ended September 30, 2013. Adjusted EBITDA for the nine months ended September 30, 2014, is adjusted for unrealized gain on derivatives of $19.3 million, realized losses on derivatives of $94.1 million and a gain on sale of vessels of $5.7 million. Tables reconciling Adjusted EBITDA to Net Income can be found at the end of this earnings release.
Recent news
On October 14, 2014, we entered into an agreement for the purchase of two 6,402 TEU containership vessels built in 2002 and we anticipate to take delivery of the vessels during the 4th quarter of the year.
Conference Call and Webcast
On Thursday, October 30, 2014 at 9:00 A.M. ET, the Company's management will host a conference call to discuss the results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 866 819 7111 (US Toll Free Dial In), 0800 953 0329 (UK Toll Free Dial In) or +44 (0)1452 542 301 (Standard International Dial In). Please quote "Danaos" to the operator.
A telephonic replay of the conference call will be available until November 6, 2014 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#
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 54 containerships aggregating 321,435 TEUs ranks Danaos among the largest containership charter owners in the world based on total TEU capacity. Danaos is one of the largest US listed containership companies based on fleet size. The Company's shares trade on the New York Stock Exchange under the symbol "DAC".
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking statements within the meaning of the safeharbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although Danaos Corporation believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, Danaos Corporation cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in Danaos Corporation's operating expenses, including bunker prices, dry-docking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.
Risks and uncertainties are further described in reports filed by Danaos Corporation with the U.S. Securities and Exchange Commission.
Visit our website at www.danaos.com
Appendix
Fleet Utilization
Danaos had 14 unscheduled off-hire days in the three months ended September 30, 2014. The following table summarizes vessel utilization and the impact of the off-hire days on the Company's revenue.
| Vessel Utilization (No. of Days) |
First Quarter 2014 |
Second Quarter 2014 |
Third Quarter 2014 |
Total | |||||||||||||
| Ownership Days | 5,277 | 5,079 | 4,968 | 15,324 | |||||||||||||
| Less Off-hire Days: | |||||||||||||||||
| Scheduled Off-hire Days | (30 | ) | (14 | ) | (9 | ) | (53 | ) | |||||||||
| Other Off-hire Days* | (225 | ) | (122 | ) | (14 | ) | (361 | ) | |||||||||
| Operating Days | 5,022 | 4,943 | 4,945 | 14,910 | |||||||||||||
| Vessel Utilization | 95.2 | % | 97.3 | % | 99.5 | % | 97.3 | % | |||||||||
| Operating Revenues (in '000s of US Dollars) | $ | 135,486 | $ | 136,440 | $ | 139,496 | $ | 411,422 | |||||||||
| Average Gross Daily Charter Rate | $ | 26,978 | $ | 27,603 | $ | 28,210 | $ | 27,594 | |||||||||
| Vessel Utilization (No. of Days) | First Quarter 2013 | Second Quarter 2013 | Third Quarter 2013 | Total | |||||||||||||
| Ownership Days | 5,677 | 5,541 | 5,612 | 16,830 | |||||||||||||
| Less Off-hire Days: | |||||||||||||||||
| Scheduled Off-hire Days | -- | (39 | ) | -- | (39 | ) | |||||||||||
| Other Off-hire Days* | (593 | ) | (287 | ) | (294 | ) | (1,174 | ) | |||||||||
| Operating Days | 5,084 | 5,215 | 5,318 | 15,617 | |||||||||||||
| Vessel Utilization | 89.6 | % | 94.1 | % | 94.8 | % | 92.8 | % | |||||||||
| Operating Revenues (in '000s of US Dollars) | $ | 146,088 | $ | 146,580 | $ | 148,448 | $ | 441,116 | |||||||||
| Average Gross Daily Charter Rate | $ | 28,735 | $ | 28,107 | $ | 27,914 | $ | 28,246 | |||||||||
* Other Off-hire days include unscheduled off-hires in the normal course of operation as well as days where hire is not earned when vessels have been on lay-up or repositioning for a new charter.
Fleet List
The following table describes in detail our fleet deployment profile as of October, 29, 2014.
| Vessel Name | Vessel Size (TEU) |
Year Built | Expiration of Charter(1) | |||
| Containerships | ||||||
| Hyundai Ambition | 13,100 | 2012 | June 2024 | |||
| Hyundai Speed | 13,100 | 2012 | June 2024 | |||
| Hyundai Smart | 13,100 | 2012 | May 2024 | |||
| Hyundai Tenacity | 13,100 | 2012 | March 2024 | |||
| Hyundai Together | 13,100 | 2012 | February 2024 | |||
| Hanjin Italy | 10,100 | 2011 | April 2023 | |||
| Hanjin Germany | 10,100 | 2011 | March 2023 | |||
| Hanjin Greece | 10,100 | 2011 | May 2023 | |||
| CSCL Le Havre | 9,580 | 2006 | September 2018 | |||
| CSCL Pusan | 9,580 | 2006 | July 2018 | |||
| CMA CGM Melisande | 8,530 | 2012 | November 2023 | |||
| CMA CGM Attila | 8,530 | 2011 | April 2023 | |||
| CMA CGM Tancredi | 8,530 | 2011 | May 2023 | |||
| CMA CGM Bianca | 8,530 | 2011 | July 2023 | |||
| CMA CGM Samson | 8,530 | 2011 | September 2023 | |||
| CSCL America | 8,468 | 2004 | September 2016 | |||
| CSCL Europe | 8,468 | 2004 | June 2016 | |||
| CMA CGM Moliere (2) | 6,500 | 2009 | August 2021 | |||
| CMA CGM Musset (2) | 6,500 | 2010 | February 2022 | |||
| CMA CGM Nerval (2) | 6,500 | 2010 | April 2022 | |||
| CMA CGM Rabelais (2) | 6,500 | 2010 | June 2022 | |||
| CMA CGM Racine (2) | 6,500 | 2010 | July 2022 | |||
| YM Mandate | 6,500 | 2010 | January 2028 | |||
| YM Maturity | 6,500 | 2010 | April 2028 | |||
| Federal | 4,651 | 1994 | March 2015 | |||
| SNL Colombo | 4,300 | 2004 | March 2019 | |||
| YM Singapore | 4,300 | 2004 | October 2019 | |||
| YM Seattle | 4,253 | 2007 | July 2019 | |||
| YM Vancouver | 4,253 | 2007 | September 2019 | |||
| Derby D | 4,253 | 2004 | January 2015 | |||
| Deva | 4,253 | 2004 | November 2014 | |||
| ZIM Rio Grande | 4,253 | 2008 | May 2020 | |||
| ZIM Sao Paolo | 4,253 | 2008 | August 2020 | |||
| OOCL Istanbul | 4,253 | 2008 | September 2020 | |||
| ZIM Monaco | 4,253 | 2009 | November 2020 | |||
| OOCL Novorossiysk | 4,253 | 2009 | February 2021 | |||
| ZIM Luanda | 4,253 | 2009 | May 2021 | |||
| Dimitris C | 3,430 | 2001 | September 2015 | |||
| Hanjin Constantza | 3,400 | 2011 | February 2021 | |||
| Hanjin Algeciras | 3,400 | 2011 | November 2020 | |||
| Hanjin Buenos Aires | 3,400 | 2010 | March 2020 | |||
| Hanjin Santos | 3,400 | 2010 | May 2020 | |||
| Hanjin Versailles | 3,400 | 2010 | August 2020 | |||
| MSC Zebra(3) | 2,602 | 2001 | October 2017 | |||
| Amalia C | 2,452 | 1998 | March 2015 | |||
| Niledutch Palanca (4) | 2,524 | 2001 | December 2014 | |||
| 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 | |||
| (1) | Earliest date charters could expire. Some charters include options to extend their terms. |
| (2) | The charters with respect to the CMA CGM Moliere, the CMA CGM Musset, the CMA CGM Nerval, the CMA CGM Rabelais and the CMA CGM Racine include an option for the charterer, CMA-CGM, to purchase the vessels eight years after the commencement of the respective charters, which will fall in September 2017, March 2018, May 2018, July 2018 and August 2018, respectively, each for $78.0 million. |
| (3) | On September 14, 2014, the Niledutch Zebra was renamed to MSC Zebra at the request of the charterer of this vessel |
| (4) | On March 25, 2014, the Danae C was renamed to Niledutch Palanca at the request of the charterer of this vessel. |
| DANAOS CORPORATION | ||||||||||||||||
| Condensed Statements of Income - Unaudited | ||||||||||||||||
| (Expressed in thousands of United States dollars, except per share amounts) | ||||||||||||||||
| Three months ended September 30, |
Three months ended September 30, |
Nine months ended September 30, |
Nine months ended September 30, |
|||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| OPERATING REVENUES | $ | 139,496 | $ | 148,448 | $ | 411,422 | $ | 441,116 | ||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Vessel operating expenses | (26,842 | ) | (30,708 | ) | (85,991 | ) | (91,622 | ) | ||||||||
| Depreciation & amortization | (35,465 | ) | (35,979 | ) | (105,697 | ) | (107,305 | ) | ||||||||
| General & administrative | (5,211 | ) | (4,934 | ) | (15,913 | ) | (14,597 | ) | ||||||||
| Gain on sale of vessels | -- | -- | 5,709 | 156 | ||||||||||||
| Other operating expenses | (3,097 | ) | (3,108 | ) | (9,617 | ) | (8,987 | ) | ||||||||
| Income From Operations | 68,881 | 73,719 | 199,913 | 218,761 | ||||||||||||
| OTHER EARNINGS/(EXPENSES) | ||||||||||||||||
| Interest income | 861 | 559 | 879 | 1,572 | ||||||||||||
| Interest expense | (19,692 | ) | (22,906 | ) | (60,951 | ) | (69,062 | ) | ||||||||
| Other finance cost, net | (4,985 | ) | (5,057 | ) | (14,898 | ) | (15,150 | ) | ||||||||
| Other income/(expenses), net | 36 | 27 | 323 | 258 | ||||||||||||
| Realized (loss)/gain on derivatives | (31,828 | ) | (37,745 | ) | (97,150 | ) | (111,581 | ) | ||||||||
| Unrealized gain/(loss) on derivatives | 9,133 | 191 | 19,340 | 16,961 | ||||||||||||
| Total Other Income/(Expenses), net | (46,475 | ) | (64,931 | ) | (152,457 | ) | (177,002 | ) | ||||||||
| Net Income | $ | 22,406 | $ | 8,788 | $ | 47,456 | $ | 41,759 | ||||||||
| EARNINGS PER SHARE | ||||||||||||||||
| Basic & diluted net income per share | $ | 0.20 | $ | 0.08 | $ | 0.43 | $ | 0.38 | ||||||||
| Basic & diluted weighted average number of common shares (in thousands of shares) | 109,669 | 109,653 | 109,669 | 109,653 | ||||||||||||
| Non-GAAP Measures* | ||||||||||||||||
| Reconciliation of Net Income to Adjusted Net Income - Unaudited | ||||||||||||||||
| Three months ended September 30, |
Three months ended September 30, |
Nine months ended September 30, |
Nine months ended September 30, |
|||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Net income | $ | 22,406 | $ | 8,788 | $ | 47,456 | $ | 41,759 | ||||||||
| Unrealized (gain)/loss on derivatives | (9,133 | ) | (191 | ) | (19,340 | ) | (16,961 | ) | ||||||||
| Amortization and write-offs of financing fees & finance fees accrued | 4,747 | 4,805 | 14,185 | 14,441 | ||||||||||||
| Gain on sale of vessels | -- | -- | (5,709 | ) | (156 | ) | ||||||||||
| Adjusted Net Income | $ | 18,020 | $ | 13,402 | $ | 36,592 | $ | 39,083 | ||||||||
| Adjusted Earnings Per Share | $ | 0.16 | $ | 0.12 | $ | 0.33 | $ | 0.36 | ||||||||
| Weighted average number of shares | 109,669 | 109,653 | 109,669 | 109,653 | ||||||||||||
| * | The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Table above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and nine months ended September 30, 2014 and 2013. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. |
| DANAOS CORPORATION | |||||||||
| Condensed Balance Sheets - Unaudited | |||||||||
| (Expressed in thousands of United States dollars) | |||||||||
| As of September 30, |
As of December 31, |
||||||||
| 2014 | 2013 | ||||||||
| ASSETS | |||||||||
| CURRENT ASSETS | |||||||||
| Cash and cash equivalents | $ | 64,633 | $ | 68,153 | |||||
| Restricted cash | 441 | 14,717 | |||||||
| Accounts receivable, net | 6,655 | 8,038 | |||||||
| Other current assets | 33,577 | 35,958 | |||||||
| 105,306 | 126,866 | ||||||||
| NON-CURRENT ASSETS | |||||||||
| Fixed assets, net | 3,696,753 | 3,842,617 | |||||||
| Restricted cash, net of current portion | 36,951 | -- | |||||||
| Deferred charges, net | 57,185 | 67,949 | |||||||
| Fair value of financial instruments | 1,211 | 2,472 | |||||||
| Other non-current assets | 66,785 | 26,648 | |||||||
| 3,858,885 | 3,939,686 | ||||||||
| TOTAL ASSETS | $ | 3,964,191 | $ | 4,066,552 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| CURRENT LIABILITIES | |||||||||
| Long-term debt, current portion | $ | 157,390 | $ | 146,462 | |||||
| Vendor Financing, current portion | 50,149 | 57,388 | |||||||
| Accounts payable, accrued liabilities & other current liabilities | 60,933 | 56,607 | |||||||
| Fair value of financial instruments, current portion | 64,973 | 109,431 | |||||||
| 333,445 | 369,888 | ||||||||
| LONG-TERM LIABILITIES | |||||||||
| Long-term debt, net of current portion | 2,827,170 | 2,965,641 | |||||||
| Vendor financing, net of current portion | 28,532 | 64,367 | |||||||
| Fair value of financial instruments, net of current portion | 12,293 | 59,077 | |||||||
| Other long-term liabilities | 42,745 | 9,103 | |||||||
| 2,910,740 | 3,098,188 | ||||||||
| STOCKHOLDERS' EQUITY | |||||||||
| Common stock | 1,097 | 1,097 | |||||||
| Additional paid-in capital | 546,097 | 546,097 | |||||||
| Accumulated other comprehensive loss | (158,623 | ) | (232,697 | ) | |||||
| Retained earnings | 331,435 | 283,979 | |||||||
| 720,006 | 598,476 | ||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 3,964,191 | $ | 4,066,552 | |||||
| DANAOS CORPORATION | ||||||||||||||||
| Condensed Statements of Cash Flows - (Unaudited) | ||||||||||||||||
| (Expressed in thousands of United States dollars) | ||||||||||||||||
| Three months ended September 30, |
Three months ended September 30, |
Nine months ended September 30, |
Nine months ended September 30, |
|||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Operating Activities: | ||||||||||||||||
| Net income | $ | 22,406 | $ | 8,788 | $ | 47,456 | $ | 41,759 | ||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
| Depreciation | 34,396 | 34,652 | 102,471 | 102,799 | ||||||||||||
| Amortization of deferred drydocking & special survey costs, finance cost and other finance fees accrued | 5,761 | 6,132 | 17,356 | 18,947 | ||||||||||||
| Written-off amount of deferred charges | 55 | -- | 55 | -- | ||||||||||||
| Payments for drydocking/special survey | (266 | ) | 153 | (4,055 | ) | (269 | ) | |||||||||
| Amortization of deferred realized losses on cash flow interest rate swaps | 1,012 | 1,012 | 3,004 | 3,004 | ||||||||||||
| Unrealized (gain)/loss on derivatives | (9,133 | ) | (191 | ) | (19,340 | ) | (16,961 | ) | ||||||||
| Gain on sale of vessels | -- | -- | (5,709 | ) | (156 | ) | ||||||||||
| Accounts receivable | 2,088 | 6,232 | 1,383 | (696 | ) | |||||||||||
| Other assets, current and non-current | 5,421 | (10,984 | ) | 1,376 | (5,344 | ) | ||||||||||
| Accounts payable and accrued liabilities | (1,721 | ) | 896 | (2,833 | ) | (273 | ) | |||||||||
| Other liabilities, current and non-current | (570 | ) | 1,938 | 1,602 | 4,367 | |||||||||||
| Net Cash provided by Operating Activities | 59,449 | 48,628 | 142,766 | 147,177 | ||||||||||||
| Investing Activities: | ||||||||||||||||
| Vessel additions and vessel acquisitions | (651 | ) | (988 | ) | (1,214 | ) | (18,745 | ) | ||||||||
| Net proceeds from sale of vessels | -- | 4,273 | 50,602 | 34,148 | ||||||||||||
| Net Cash (used in)/provided by Investing Activities | (651 | ) | 3,285 | 49,388 | 15,403 | |||||||||||
| Financing Activities: | ||||||||||||||||
| Debt repayment | (66,680 | ) | (44,867 | ) | (172,999 | ) | (120,538 | ) | ||||||||
| Deferred costs | -- | (100 | ) | -- | (100 | ) | ||||||||||
| Decrease/(Increase) in restricted cash | 21,009 | (1,486 | ) | (22,675 | ) | (17,076 | ) | |||||||||
| Net Cash used in Financing Activities | (45,671 | ) | (46,453 | ) | (195,674 | ) | (137,714 | ) | ||||||||
| Net Increase/(Decrease) in cash and cash equivalents | 13,127 | 5,460 | (3,520 | ) | 24,866 | |||||||||||
| Cash and cash equivalents, beginning of period | 51,506 | 75,034 | 68,153 | 55,628 | ||||||||||||
| Cash and cash equivalents, end of period | $ | 64,633 | $ | 80,494 | $ | 64,633 | $ | 80,494 | ||||||||
| Reconciliation of Net Income to Adjusted EBITDA | |||||||||||||||
| (Expressed in thousands of United States dollars) | |||||||||||||||
| Three months ended September 30, |
Three months ended September 30, |
Nine months ended September 30, |
Nine months ended September 30, |
||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||
| Net income | $ | 22,406 | $ | 8,788 | $ | 47,456 | $ | 41,759 | |||||||
| Depreciation | 34,396 | 34,652 | 102,471 | 102,799 | |||||||||||
| Amortization of deferred drydocking & special survey costs | 1,069 | 1,327 | 3,226 | 4,506 | |||||||||||
| Amortization of deferred finance costs, write-offs and other finance fees accrued | 4,747 | 4,805 | 14,185 | 14,441 | |||||||||||
| Amortization of deferred realized losses on interest rate swaps | 1,012 | 1,012 | 3,004 | 3,004 | |||||||||||
| Interest income | (861 | ) | (559 | ) | (879 | ) | (1,572 | ) | |||||||
| Interest expense | 19,692 | 22,906 | 60,951 | 69,062 | |||||||||||
| Gain on sale of vessels | -- | -- | (5,709 | ) | (156 | ) | |||||||||
| Realized loss on derivatives | 30,816 | 36,733 | 94,146 | 108,577 | |||||||||||
| Unrealized (gain)/loss on derivatives | (9,133 | ) | (191 | ) | (19,340 | ) | (16,961 | ) | |||||||
| Adjusted EBITDA(1) | $ | 104,144 | $ | 109,473 | $ | 299,511 | $ | 325,459 | |||||||
| 1) | Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs and deferred finance costs, unrealized (gain)/loss on derivatives, realized gain/(loss) on derivatives, stock based compensation and gain/(loss) on sale of vessels. However, Adjusted EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or "GAAP." We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that Adjusted EBITDA is useful in evaluating our ability to service additional debt and make capital expenditures. In addition, we believe that Adjusted EBITDA is useful in evaluating our operating performance and liquidity position compared to that of other companies in our industry because the calculation of Adjusted 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. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. |
Note: Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to net income. Charges negatively impacting net income are reflected as increases to net income.
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and nine months ended September 30, 2014 and 2013. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP.
Contact Information:
For further information please contact:
Company Contact:
Evangelos Chatzis
Chief Financial Officer
Danaos Corporation
Athens, Greece
Tel.: +30 210 419 6480
E-Mail: cfo@danaos.com
Iraklis Prokopakis
Senior Vice President and 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: danaos@capitallink.com