-- Net earnings of $44.6 million or $0.82 per share and $215.3 million or
$3.95 per share for the quarter and the year ended December 31, 2007
respectively, compared to $30.6 million or $0.57 per share and $101.1
million or $2.16 per share for the respective periods of 2006.
-- Operating Revenues from continuing operations of $71.3 million and
$258.8 million for the quarter and the year ended December 31, 2007
respectively, compared to $57.7 million and $205.2 million for the
respective periods of 2006.
-- EBITDA of $64.6 million and $280.5 million for the quarter and the
year ended December 31, 2007 respectively, compared to $46.6 million and
$163.3 million for the respective periods of 2006.
-- Paid dividends of $0.465 per share for the fourth quarter paid on
February 14, 2008 to all shareholders of record as of January 30, 2008
Danaos' CEO Dr. John Coustas commented: "We are very pleased with our
fourth quarter and 2007 achievements. During the fourth quarter we
continued to successfully implement our growth strategy. During this last
quarter we took delivery of two second-hand 2,200 TEU containerships, each
of which has been chartered out for 10 years. We also took delivery of one
second-hand 4,300 TEU containership, and one new 4,253 TEU containership.
Three additional vessels of 2,200 TEU, are expected to join our fleet
during the first quarter of 2008. Each of these three vessels are committed
under 10 year charters following delivery. We arranged time-charters for
three fully depreciated vessels in our fleet and decided to sell one fully
depreciated vessel at a $5.5m profit. We further secured a 2 year charter
for the MV Pacific Bridge. Danaos' contracted revenues have increased to
approximately $7.3 billion, with charters extending as far as 2028.
"During the fourth quarter, the containership market further improved due
to strong demand in the Far East-Europe and Middle East-India-Far East
trades which counterbalanced a decline in the rate of growth in the
transpacific trades. The lack of available vessels for new charters,
especially in the 3,000 TEU and above sizes, explains our success in
re-chartering all but one of our older vessels. The weakness in the US
housing market which contributed to slow growth in the Transatlantic and
Transpacific trades is likely to persist throughout the first half of 2008.
However, vessel demand will keep strong due to the slow steaming that is
increasingly becoming a practice due to the sustainable high oil price. The
credit crunch has not significantly impacted our industry mainly as a
result of the asset backed borrowing and long charter terms that
characterise containership leasing.
"Vessel prices during the fourth quarter of 2007 have further strengthened
as a result of strong new building demand for large containerships. The
slow-down of the US economy will likely have a spill-over effect triggering
some caution in the ordering of additional containerships.
"Earlier in January, our board of directors declared a dividend of $0.465
per share for the fourth quarter, which was paid in February 2008. The
dividend reflects our dedication to increase shareholder value through
enhanced distributable cash flows, resulting form the successful
implementation of our growth strategy."
Three months ended December 31, 2007 compared to the three months ended
December 31, 2006
During the quarter ended December 31, 2007, Danaos had an average of 36.1
containerships as opposed to 27.9 containerships for the same period of
2006. During the quarter, we acquired four vessels, the Hyundai Future on
October 2, 2007, the YM Singapore on October 9, 2007, the Hyundai Sprinter
on October 15, 2007 and the YM Vancouver on November 27, 2007.
Given the sale of our entire dry bulk fleet in the beginning of 2007,
management has determined that the dry bulk business constituted
discontinued operations. The following management and discussion analysis
solely reflects results from continuing operations (containerships), unless
otherwise noted.
Our net income from continuing operations was $44.7 million or $0.82 per
share for the fourth quarter of 2007 compared to $23.6 million or $0.44 per
share for the fourth quarter of 2006, an increase in net income from
continuing operations of 89.4% or $21.1 million. Total net income
(including income from discontinued operations) was $44.6 million or $0.82
per share for the fourth quarter of 2007 compared to $30.6 million or $0.57
per share for the fourth quarter of 2006, an increase in net income of
45.8% or $14.0 million. Normalized earnings per share for the quarter were
$0.49. Normalized earnings do not reflect a one time gain of $19.0 million
related to the UK leases for six of our vessels nor a loss of $1.2 million
related to unrealized losses on derivative instruments.
Operating Revenue
Operating revenue increased 23.6%, or $13.6 million, to $71.3 million in
the quarter ended December 31, 2007 from $57.7 million in the quarter ended
December 31, 2006. The increase was primarily attributable to the addition
to our fleet of nine vessels, as follows:
Vessel Size
Vessel Name (TEU) Date Delivered
------------ ------------------
YM Colombo 4,300 March 12, 2007
YM Singapore 4,300 October 9, 2007
YM Seattle 4,253 September 10, 2007
YM Vancouver 4,253 November 27, 2007
Hyundai Vladivostok 2,200 July 23, 2007
Hyundai Advance 2,200 August 20, 2007
Hyundai Stride 2,200 September 5, 2007
Hyundai Future 2,200 October 2, 2007
Hyundai Sprinter 2,200 October 15, 2007
These additions to our fleet contributed revenues of $15.2 million during
the three months ended December 31, 2007. Moreover, three 4,814 TEU
containerships, the Maersk Marathon, the Maersk Messologi and the Maersk
Mytilini which were added to our fleet on December 13, 2006, December 18,
2006 and December 22, 2006, respectively, and the 9,580 TEU CSCL Le Havre
which was added to our fleet on November 20, 2006, contributed incremental
revenues of $7.2 million during the three months ended December 31, 2007
compared to the same period in 2006. In addition, the Company sold three
vessels as follows:
Vessel Size
Vessel Name (TEU) Date Sold
------------ ------------------
APL England 5,506 March 7, 2007
APL Scotland 5,506 June 22, 2007
APL Holland 5,506 August 3, 2007
The sale reduced revenue by $7.4 million during the three months ended
December 31, 2007, in comparison to the same period in the previous year.
The balance of $1.4 million is attributed to loss of revenue due to off
hires and change of charter rates due to re-chartering.
Vessel Operating Expenses
Vessel operating expenses increased 31.9% or $4.6 million, to $19.0 million
in the quarter ended December 31, 2007, from $14.4 million in the quarter
ended December 31, 2006. The increase was mainly due to the increase in the
average number of our vessels in our fleet during the quarter ended
December 31, 2007 compared with the quarter ended December 31, 2006.
Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of
Deferred Dry-docking and Special Survey Costs.
Depreciation
Depreciation expense increased 40.2%, or $3.3 million, to $11.5 million in
the quarter ended December 31, 2007, from $8.2 million in the quarter ended
December 31, 2006. The increase in depreciation expense was due to the
increase in the average number of vessels in our fleet as well as the
higher acquisition cost of such additional vessels compared with those sold
during the quarter ended December 31, 2007.
Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs expense
increased 41.7%, or $0.5 million, to $1.7 million in the quarter ended
December 31, 2007, from $1.2 million in the quarter ended December 31,
2006. The increase resulted from more drydockings in 2007, which were
amortized during the three months ended December 31, 2007 as compared to
the same period of 2006.
General and Administrative Expenses
General and administrative expenses increased 35.0%, or $0.7 million, to
$2.7 million in the quarter ended December 31, 2007 from $2.0 million in
the same quarter of 2006. The increase resulted from both $0.4 million in
fees paid to our Manager based on an increase in the average number of our
vessels in our fleet in the fourth quarter 2007 compared with the fourth
quarter of 2006 and $0.3 million in various administrative expenses which
were not applicable in the quarter ended December 31, 2006.
Other Operating Expenses
Other Operating Expenses include Voyage Expenses
Voyage Expenses
Voyage expenses increased $0.2 million to $2.1 million in the quarter ended
December 31, 2007, from $1.9 million for the quarter ended December 31,
2006. The increase in voyage expenses was attributable to the increase in
the average number of our vessels in our fleet during the quarter ended
December 31, 2007 compared with the quarter ended December 31, 2006.
Interest Expense and Interest Income
Interest expense increased 41.1%, or $2.3 million, to $7.9 million in the
quarter ended December 31, 2007, from $5.6 million in the quarter ended
December 31, 2006. The increase in interest expense was primarily due to
the increase in our average indebtedness in the quarter ended December 31,
2007 compared with that of the same period in 2006, partially offset by the
financing of our extensive new-building program which resulted in
capitalizing $9.7 million of interest for the quarter ended December 31,
2007 as opposed to $2.8 million of capitalized interest for the quarter
ended December 31, 2006. Interest income increased $0.1 million to
$1.2 million in the quarter ended December 31, 2007 from $1.1 million in
the quarter ended December 31, 2006 due to increased average bank deposits.
Other income/(expenses)
Other income (expenses) of $19.1 million for the three months ended
December 31, 2007 represents a non-recurring gain of $19.0 million related
to restructuring of our leasing arrangements of the CSCL Europe, the Msc
Baltic, the Maersk Derby, the Maersk Deva, the CSCL Pusan and the CSCL Le
Havre and their subsequent restructuring we entered into in October 2007.
EBITDA
EBITDA from continuing operations increased $27.0 million, or 71.8%, to
$64.6 million in the quarter ended December 31, 2007 from $37.6 million in
the quarter ended December 31, 2006. A table reconciling EBITDA to net
income can be found at the end of this earnings release.
Twelve months ended December 31, 2007 compared to the twelve months ended
December 31, 2006
Given the sale of our entire dry bulk fleet, management has determined that
the dry bulk business constitutes discontinued operations. The following
management and discussion analysis solely reflects results from continuing
operations (containerships), unless otherwise noted.
During the twelve months ended December 31, 2007, we had an average of 32.3
containerships compared to 26.3 containerships during the twelve months
ended December 31, 2006. The increase in the average number of
containerships is a result of the addition to our fleet of nine vessels and
the sale of three vessels during the 12 months ended December 31, 2007.
Our net income from continuing operations was $123.1 million or $2.26 per
share for the twelve months ended December 31, 2007 compared to $65.4
million or $1.40 per share for the twelve months ended December 31, 2006,
an increase in net income from continuing operations of 88.2% or $57.7
million. Total net income (including discontinued operations, which also
accounts for profits from the sale of our dry bulk carrier fleet) was
$215.3 million or $3.95 per share for the twelve months ended December 31,
2007 compared to $101.1 million or $2.16 per share for the twelve months
ended December 31, 2006, an increase in net income of 113.0% or $114.2
million. Normalized earnings per share from all operations were $2.05 for
the year. Normalized earnings do not reflect gain on sale of vessels of
$88.4 million, a non recurring gain of $15.5 million related to the UK
leases for six of our vessels and a loss of $0.7 million related to
valuation of derivative instruments.
Operating Revenue
Operating revenue increased 26.1%, or $53.6 million, to $258.8 million in
the twelve months ended December 31, 2007, from $205.2 million in the
twelve months ended December 31, 2006. The increase was primarily
attributable to the addition to our fleet of nine vessels, as follows:
Vessel Size
Vessel Name (TEU) Date Delivered
------------ ------------------
YM Colombo 4,300 March 12, 2007
YM Singapore 4,300 October 9, 2007
YM Seattle 4,253 September 10, 2007
YM Vancouver 4,253 November 27, 2007
Hyundai Vladivostok 2,200 July 23, 2007
Hyundai Advance 2,200 August 20, 2007
Hyundai Stride 2,200 September 5, 2007
Hyundai Future 2,200 October 2, 2007
Hyundai Sprinter 2,200 October 15, 2007
These additions to our fleet collectively contributed revenues of $23.4
million during the twelve months ended December 31, 2007. Moreover, a 4,651
TEU containership, the MOL Confidence, which was added to our fleet on
March 23, 2006, three 4,814 TEU containerships, the Maersk Marathon, the
Maersk Messologi and the Maersk Mytilini which were added to our fleet on
December 13, December 18, and December 22, 2006 respectively, and two 9,580
TEU containerships, the CSCL Pusan and the CSCL Le Havre, which were added
to our fleet on September 8, 2006 and November 20, 2006 respectively,
contributed incremental revenues of $45.8 million during the twelve months
ended December 31, 2007 compared to the twelve months ended December 31,
2006. In addition, the Company sold three vessels as follows:
Vessel Size
Vessel Name (TEU) Date Sold
------------ ------------------
APL England 5,506 March 7, 2007
APL Scotland 5,506 June 22, 2007
APL Holland 5,506 August 3, 2007
The sale reduced revenue by $16.0 million during the twelve months ended
December 31, 2007, compared with the previous year.
Vessel Operating Expenses
Vessel operating expenses increased 24.0%, or $12.7 million, to
$65.7 million in the twelve months ended December 31, 2007, from
$53.0 million in the twelve months ended December 31, 2006. This increase
was due to the increase in the average number of containerships in our
fleet by 6.0 vessels, or 22.8% to 32.3 containerships in the twelve months
ended December 31, 2007 from 26.3 containerships in the twelve months ended
December 31, 2006.
Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of
Deferred Dry-docking and Special Survey Costs.
Depreciation
Depreciation expense increased 48.7%, or $13.3 million, to $40.6 million in
the twelve months ended December 31, 2007, from $27.3 million for the
twelve months ended December 31, 2006. The increase in depreciation expense
was due to the increase in the average number of vessels in our fleet as
well as the higher acquisition cost of such additional vessels compared to
those sold during the twelve months ended September 30, 2007.
Amortization of Deferred Drydocking and Special Survey Costs
Amortization of deferred drydocking and special survey costs expense
increased 48.8%, or $2.0 million, to $6.1 million in the twelve months
ended December 31, 2007, from $4.1 million in the twelve months ended
December 31, 2006. The increase resulted from more drydockings for 2007
than 2006.
General and Administrative Expenses
General and administrative expenses increased 56.3%, or $3.6 million, to
$10.0 million in the twelve months ended December 31, 2007 from $6.4
million in the twelve months ended December 31, 2006. The increase was
mainly a result of public company related expenses which applied to the
three months ended December 31, 2006. Such public company expenses were
higher by $2.0 million in the twelve months ended December 31, 2007
compared with the twelve months ended December 31, 2006. Moreover, fees
paid to our Manager were larger by $1.1 million as a result of an increase
in the average number of our vessels in our fleet in the twelve months
ended December 31, 2007 as opposed to those in the same period of 2006. The
$0.5 million balance represents various other administrative expenses which
were not applicable in the year ended December 31, 2006.
(Loss) on sale of vessels
Loss on sale of vessels of $0.3 million represents a loss on sale of three
containerships for the twelve months ended December 31, 2007.
Other Operating Expenses
Other Operating Expenses include Voyage Expenses
Voyage Expenses
Voyage expenses increased 38.9%, or $2.1 million, to $7.5 million in the
twelve months ended December 31, 2007, from $5.4 million for the twelve
months ended December 31, 2006. The increase in voyage expenses was mainly
due to commissions paid to our Manager of $2.1 million for the ten vessels
acquired and sold in accordance with our management contract during the
twelve months ended December 31, 2007 as opposed to $0.8 million of such
commissions for the same period in 2006. The balance of $0.8 million is
attributed to higher commissions on gross revenue, address and brokerage
commissions and other voyage expenses, due to the increase in the average
number of containerships in our fleet in the twelve months ended December
31, 2007, compared with the same period of 2006.
Interest Expense and Interest Income
Interest expense decreased 6.3%, or $1.5 million, to $22.4 million in the
twelve months ended December 31, 2007, from $23.9 million in the twelve
months ended December 31, 2006. The decrease in reported interest expense
was primarily due to the financing of our significant new-building program
which resulted in capitalizing $22.9 million of interest for the twelve
months ended December 31, 2007 compared to $8.6 million of capitalized
interest for the twelve months ended December 31, 2006, this was partially
offset by the increase in our average indebtedness in the year ended
December 31, 2007, compared with that of the same period in 2006. Interest
income increased $1.3 million, or 36.1%, to $4.9 million in the twelve
months ended December 31, 2007, from $3.6 million in the twelve months
ended December 31, 2006, due to increased average bank deposits.
Other income/(expenses)
Other income (expenses) increased $33.1 million to $14.6 million for the
year ended December 31, 2007 from $(18.5) million in the year ended
December 31, 2006. The increase was primarily attributed to a non recurring
gain of $15.9 million for 2007 compared to a non recurring loss of $18.7
million in 2006, both attributable to the leasing arrangements for the CSCL
Europe, the MSC Baltic, the Maersk Derby, the Maersk Deva, the CSCL Pusan
and the CSCL Le Havre and their subsequent restructuring entered into in
October 2007.
Gain/(loss) on derivatives
Gain/(loss) on derivatives increased $6.8 million to $0.2 million in the
twelve months ended December 31, 2007, from a $6.6 million loss in the
twelve months ended December 31, 2006. This increase is a result of the
initiation of hedge accounting from the third quarter of 2006.
EBITDA
EBITDA from continuing operations increased $70.2 million, or 59.9%, to
$187.4 million in the twelve months ended December 31, 2007, from $117.2
million in the twelve months ended December 31, 2006. A table reconciling
EBITDA to net income can be found at the end of this earnings release.
Dividend Payment
On October 22, 2007 we declared a dividend of $0.465 per common share for
the third quarter of 2007 for all shareholders of record as of November 2,
2007 which was paid on November 16, 2007. On January 18, 2008 the Board of
Directors declared a dividend of $0.465 per common share for the fourth
quarter of 2007 payable on February 14, 2008 to all shareholders of record
as of January 30, 2008.
Recent News
During the last few months we time-chartered one of our 30 year old ships,
the S.A. Helderberg, a 3,100 TEU containership, for a period of 12 months
beginning December 7, 2007. On February 19, 2008, we time-chartered its
sister ship, the S.A. Sederberg for a period of 12 months. On January 25,
2008, the third 30 year old sister ship to the above mentioned vessels, the
S.A Winterberg was sold to an unrelated third party resulting in a net gain
of approximately $5.0 million. Further, we re-chartered the 30 year old
Eagle Express for 26 months and the Pacific Bridge for 24 months, both at
accretive rates. All the above vessels have been chartered to major
international liner companies.
On January 15, 2008, the Company sold the APL Belgium to APL following the
exercise of APL's call for this vessel. The sale consideration was $44.5
million resulting in a net gain of approximately US$ 0.9 million.
On January 18, 2008, we entered into an agreement to acquire three 1998
built, 2,200 TEU containerships for an aggregate price of approximately $90
million. These vessels, the Hyundai Progress, the Hyundai Bridge, and the
Hyundai Highway, were built by Hyundai Heavy Industries and are expected to
be delivered on March 17 and March 18, 2008, with the first one already
delivered on February 11, 2008. The acquisition is financed through our
existing credit facilities and funds from operations. All three vessels
have ten year long charters arranged with Hyundai Merchant.
On February 11, 2008 the Company acquired a 2,200 TEU vessel M/V Hyundai
Progress, built in 1998 for $30.4 million. The vessel has already been
time-chartered out for 10 years to Hyundai Merchant Marine.
Conference Call and Webcast
On Tuesday, March 11, 2008 at 10:00 A.M. EDT, the Company's management will
host a conference call to discuss the results.
Participants should dial into the call 10 minutes before the scheduled time
using the following numbers: 1 866 819 7111 (US Toll Free Dial In), 0800
953 0329 (UK Toll Free Dial In) or +44 (0)1452 542 301 (Standard
International Dial In). Please quote "Danaos." In case of any problems with
the above numbers, please dial 1 866 223 0615 (US Toll Free Dial In), 0800
694 1503 (UK Toll Free Dial In) or +44 (0)1452 586 513 (Standard
International Dial In). Please quote "Danaos." A telephonic replay of the
conference call will be available until March 17, 2008 by dialing 1 866 247
4222 (US Toll Free Dial In), 0800 953 1533 (UK Toll Free Dial In) or +44
(0)1452 550 000 (Standard International Dial In). Access Code: 1186615#
Audio webcast:
There will also be a live and then archived webcast of the conference call
through the Danaos website (www.danaos.com). Participants to the live
webcast should register on the website approximately 10 minutes prior to
the start of the webcast.
About Danaos Corporation
Danaos Corporation is an international owner of containerships, chartering
its vessels to many of the world's largest liner companies. Our current
fleet of 36 containerships aggregating 145,318 TEUs ranks Danaos among the
largest containership charter owners in the world based on total TEU
capacity. Danaos is the largest US listed containership company based on
fleet size. Furthermore, the company has a contracted fleet of 36
additional containerships aggregating 247,868 TEU with scheduled deliveries
up to 2011. The company's shares trade on the New York Stock Exchange under
the symbol "DAC."
Forward-Looking Statement
Matters discussed in this release may constitute forward-looking statements
within the meaning of the safeharbor provisions of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. Forward-looking statements reflect our current views with respect to
future events and financial performance and may include statements
concerning plans, objectives, goals, strategies, future events or
performance, and underlying assumptions and other statements, which are
other than statements of historical facts. The forward-looking statements
in this release are based upon various assumptions, many of which are
based, in turn, upon further assumptions, including without limitation,
management's examination of historical operating trends, data contained in
our records and other data available from third parties. Although Danaos
Corporation believes that these assumptions were reasonable when made,
because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to
predict and are beyond our control, Danaos Corporation cannot assure you
that it will achieve or accomplish these expectations, beliefs or
projections. Important factors that, in our view, could cause actual
results to differ materially from those discussed in the forward-looking
statements include the strength of world economies and currencies, general
market conditions, including changes in charter hire rates and vessel
values, shipyard performance, changes in demand that may affect attitudes
of time charterers to scheduled and unscheduled drydocking, changes in
Danaos Corporation's operating expenses, including bunker prices,
dry-docking and insurance costs, actions taken by regulatory authorities,
potential liability from pending or future litigation, domestic and
international political conditions, potential disruption of shipping routes
due to accidents and political events or acts by terrorists.
Risks and uncertainties are further described in reports filed by Danaos
Corporation with the U.S. Securities and Exchange Commission.
Visit our website at www.danaos.com
Appendix
Fleet Utilization
Danaos had 105 off-hire days in total in the fourth quarter. The following
tables summarize vessel utilization and the impact of the off-hire days on
the company's revenue relating to the last four quarters.
First Second Third Fourth Totals
Quarter Quarter Quarter Quarter
2007 2007 2007 2007
------- ------- ------- ------- -------
Vessel utilization No. of No. of No. of No. of No. of
Days Days Days Days Days
------- ------- ------- ------- -------
Ownership days continuing ops 2,786 2,813 2,861 3,324 11,784
Ownership days discontinuing
ops 254 30 0 0 284
Less Off-hire Days:
Scheduled Drydocking
continuing ops (63) (46) (49) (81) (239)
Other off- hire Days
continuing ops (3) (16) 0 (24) (43)
Other off- hire Days
discontinuing ops 0 (2) 0 0 (2)
Operating Days continuing ops 2,720 2,751 2,812 3,219 11,502
Operating Days discontinuing
ops 254 28 0 0 282
======= ======= ======= ======= =======
Vessel Utilization continuing
ops 97.6% 97.8% 98.3% 96.9% 97.6%
======= ======= ======= ======= =======
Vessel Utilization
discontinuing ops 100.0% 93.3% 98.3% 96.9% 99.3%
======= ======= ======= ======= =======
First Second Third Fourth Totals
Quarter Quarter Quarter Quarter
2007 2007 2007 2007
------- ------- ------- ------- -------
Revenue - Impact of Off-hire
(in '000s of US dollars) Revenue Revenue Revenue Revenue Revenue
------- ------- ------- ------- -------
100% fleet utilization
continuing ops 63,593 64,231 63,698 72,006 263,528
100% fleet utilization
discontinuing ops 5,547 993 0 0 6,540
Less Off-hire Days:
Scheduled Drydocking
continuing ops (1,463) (1,061) (1,055) (46) (3,625)
Other off- hire Days
continuing ops (102) (331) 0 (625) (1,058)
Other off- hire Days
discontinuing ops 0 (25) 0 0 (25)
======= ======= ======= ======= =======
Actual Revenue Earned
continuing ops 62,028 62,839 62,643 71,335 258,845
======= ======= ======= ======= =======
Actual Revenue Earned
discontinuing ops 5,547 968 0 0 6,515
======= ======= ======= ======= =======
Fleet List
The following table describes in detail our current fleet deployment
profile.
Vessel
Size Year Expiration of
Vessel Name (TEU) Built Charter(1)
-------------------- -------- ------- --------------
Containerships
--------------------
CSCL Pusan 9,580 2006 September 2018
CSCL Le Havre 9,580 2006 November 2018
MSC Baltic 8,468 2004 November 2016
CSCL Europe 8,468 2004 August 2016
Maersk Marathon 4,814 1991 December 2011
Maersk Messologi 4,814 1991 December 2011
Maersk Mytilini 4,814 1991 December 2011
Hyundai Commodore 4,651 1992 May 2011
Hyundai Duke 4,651 1992 April 2011
MOL Confidence 4,651 1994 November 2012
YM Colombo 4,300 2004 May 2019
YM Singapore 4,300 2004 December 2019
Maersk Derby 4,253 2004 April 2009
Maersk Deva 4,253 2004 March 2009
YM Seattle 4,253 2007 September 2019
YM Vancouver 4,253 2007 November 2019
Al Rayyan 3,908 1989 February 2011
YM Yantian 3,908 1989 September 2011
YM Milano 3,129 1988 July 2011
S.A. Helderberg 3,101 1977 December 2008
CMA CGM Lotus 3,098 1988 August 2010
CMA CGM Vanille 3,045 1986 August 2010
CMA CGM Passiflore 3,039 1986 June 2010
CMA CGM Elbe 2,917 1991 August 2010
CMA CGM Kalamata 2,917 1991 August 2010
CMA CGM Komodo 2,917 1991 August 2010
Hyundai Vladivostok 2,200 1997 July 2017
Hyundai Advance 2,200 1997 August 2017
Hyundai Stride 2,200 1997 September 2017
Hyundai Future 2,200 1997 October 2017
Hyundai Sprinter 2,200 1997 October 2017
Hyundai Progress 2,200 1998 February 2018
Pacific Bridge 2,130 1984 May 2010
MSC Eagle 1,704 1978 January 2010
--------------------
Bareboat
Containerships
--------------------
Maersk Constantia 3,101 1978 June 2008
Sederberg 3,101 1978 March 2009
(1) Earliest date charters could expire. Some charters include options
to extend their term.
New Deliveries
The following table describes the expected additions to our fleet as a
result of our new building containership program as well as the acquisition
of two second hand containerships.
Vessel Expected
Vessel Name Size Delivery Expiration
(TEU) Date(1) of Charter
------------ ---------- ---------- ----------
Newbuildings
------------
HN 1670 4,253 July 2008 2020
HN 1671 4,253 Sept. 2008 2020
HN 1672 4,253 Nov. 2008 2020
HN 1673 4,253 Dec. 2008 2020
HN 1698 4,253 Mar. 2009 2021
HN 1699 4,253 June 2009 2021
HN S4001(1) 6,500 April 2009 2021
HN S4002(1) 6,500 June 2009 2021
HN S4003(1) 6,500 Aug. 2009 2021
HN S4004(1) 6,500 Oct. 2009 2021
HN S4005(1) 6,500 Dec. 2009 2021
HN Z 00001 8,530 June 2010 2022
HN Z 00002 8,530 June 2010 2022
HN Z 00003 8,530 Aug. 2010 2022
HN Z 00004 8,530 Aug. 2010 2022
HN H1022A 8,530 Oct. 2010 2022
HN S-456 12,600 Feb. 2011 2023
HN S-457 12,600 Apr. 2011 2023
HN S-458 12,600 June 2011 2023
HN S-459 12,600 Aug. 2011 2023
HN S-460 12,600 Sept. 2011 2023
HN S-461 10,100 Jan. 2011 2023
HN S-462 10,100 Feb. 2011 2023
HN S-463 10,100 Mar. 2011 2023
HN N-214 6,500 Nov. 2009 2027
HN N-215 6,500 Jan. 2010 2028
HN N-216 6,500 Mar. 2010 2025
HN N-217 6,500 May 2010 2025
HN N-218 6,500 July 2010 2025
HN N-219 3,400 Nov. 2009 2019
HN N-220 3,400 Jan. 2010 2020
HN N-221 3,400 Feb. 2010 2020
HN N-222 3,400 Apr. 2010 2020
HN N-223 3,400 May 2010 2020
Year
Secondhand Built
------------ -----
Hyundai Bridge 2,200 Mar.2008 1998 2018
Hyundai Highway 2,200 Mar.2008 1998 2018
(1) Vessel subject to charterer's option to purchase vessel after first
eight years of time charter term for $78.0 million.
DANAOS CORPORATION
Statements of Income
(Expressed in thousands of United States dollars, except share and per
share amounts)
Three Three
months ended months ended Year ended Year ended
December December December December
31, 31, 31, 31,
---------- ---------- ---------- ----------
2007 2006 2007 2006
---------- ---------- ---------- ----------
un-audited (audited) un-audited (audited)
OPERATING REVENUES $ 71,335 $ 57,748 $ 258,845 $ 205,177
OPERATING EXPENSES
Vessel operating expenses (19,045) (14,413) (65,676) (52,991)
Depreciation &
amortization (13,220) (9,436) (46,735) (31,431)
General & administrative (2,695) (2,034) (9,955) (6,413)
Gain/(loss) on sale of
vessels - - (286) -
Other operating expenses (2,106) (1,854) (7,499) (5,568)
---------- ---------- ---------- ----------
Income From Operations 34,269 30,011 128,694 108,774
---------- ---------- ---------- ----------
OTHER EARNINGS (EXPENSES)
Interest income 1,184 1,069 4,861 3,605
Interest expense (7,883) (5,612) (22,421) (23,905)
Other finance income /
(cost), net (1,193) (404) (2,779) 2,049
Other income /
(expenses), net 19,087 (1,406) 14,560 (18,476)
Gain / (loss) on
derivatives (814) (25) 183 (6,628)
---------- ---------- ---------- ----------
Total Other Income
(Expenses), net 10,381 (6,378) (5,596) (43,355)
---------- ---------- ---------- ----------
Net income from continuing
operations $ 44,650 $ 23,633 $ 123,098 $ 65,419
---------- ---------- ---------- ----------
Net income from
discontinued operations $ (8) $ 6,929 $ 92,166 $ 35,663
---------- ---------- ---------- ----------
Net Income $ 44,642 $ 30,562 $ 215,264 $ 101,082
========== ========== ========== ==========
EARNINGS PER SHARE (from
continuing operations)
Basic and diluted net
income per share $ 0.82 $ 0.44 $ 2.26 $ 1.40
========== ========== ========== ==========
EARNINGS PER SHARE
Basic and diluted net
income per share $ 0.82 $ 0.57 $ 3.95 $ 2.16
========== ========== ========== ==========
Basic and diluted weighted
average number of shares
(in thousands of shares) 54,558 54,000 54,558 46,751
========== ========== ========== ==========
DANAOS CORPORATION
Balance Sheets
(Expressed in thousands of United States dollars)
As of As of
December 31, December 31,
------------- --------------
2007 2006
------------- --------------
un-audited (audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 63,495 $ 43,075
Restricted cash 46,179 2,493
Accounts receivable, net 4,321 2,170
Other current assets 18,993 11,962
------------- --------------
132,988 59,700
NON-CURRENT ASSETS
Fixed assets, net 1,182,505 1,016,608
Advances for vessel acquisitions and
vessels under construction 745,534 205,366
Deferred charges, net 10,431 9,399
Fair value of financial instruments - 5,832
Other non-current assets 333 285
------------- --------------
1,938,803 1,237,490
------------- --------------
TOTAL ASSETS $ 2,071,791 $ 1,297,190
============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Long-term debt, current portion $ 25,619 $ 22,760
Accounts payable, accrued liabilities &
other current liabilities 24,092 21,488
Fair value of financial instruments,
current portion 1,402 1,466
------------- --------------
51,113 45,714
LONG-TERM LIABILITIES
Long-term debt, net of current portion 1,330,927 639,556
Fair value of financial instruments, net of
current portion 56,537 5,775
Other long-term liabilities 8,310 40,293
------------- --------------
1,395,774 685,624
STOCKHOLDERS' EQUITY
Common stock 546 546
Additional paid-in capital 288,530 288,530
Accumulated other comprehensive income (54,886) 3,941
Retained earnings 390,714 272,835
------------- --------------
624,904 565,852
------------- --------------
Total liabilities and stockholders' equity $ 2,071,791 $ 1,297,190
============= ==============
DANAOS CORPORATION
Statements of Cash Flows
(Expressed in thousands of United States dollars)
Three Months Three Months
ended ended Year ended Year ended
December December December December
31, 31, 31, 31,
---------- ---------- ---------- ----------
2007 2006 2007 2006
---------- ---------- ---------- ----------
un-audited (audited) un-audited (audited)
Cash Flows provided by /
(used in):
Operating Activities:
Net Earnings $ 44,642 $ 30,562 $ 215,264 $ 101,082
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation 11,545 9,088 41,093 31,111
Amortization of deferred
charges 1,716 1,699 6,380 5,560
Written off amount of
deferred charges 177 278 621 781
Payments for drydocking /
special survey (1,521) (1,012) (7,592) (8,037)
Change in fair value of
debt and financial
instruments 1,239 (216) 193 5,733
Gain on sale of vessels - - (88,349) (14,954)
Accounts receivable (3,048) (387) (2,151) (3,034)
Other assets, current and
non-current 2,307 3,205 (7,079) (1,066)
Accounts payable and
accrued liabilities 4,760 1,275 2,642 5,775
Other liabilities,
current and non-current (17,934) 172 (2,752) 28,627
---------- ---------- ---------- ----------
Cash provided by Operating
Activities 43,883 44,664 158,270 151,578
---------- ---------- ---------- ----------
Investing Activities:
Vessel acquisitions
including advances (111,501) (131,102) (266,608) (171,749)
Vessels under
construction (376,514) (18,966) (696,752) (185,148)
Proceeds from sale of
vessels - - 275,768 26,798
---------- ---------- ---------- ----------
Cash used in Investing
Activities (488,015) (150,068) (687,592) (330,099)
---------- ---------- ---------- ----------
Financing Activities:
Debt draw downs 473,000 296,892 1,014,177 434,971
Debt repayment (3,593) (378,542) (322,437) (447,765)
Paid in capital - 201,259 - 201,259
Dividends paid (25,369) - (97,385) -
Deferred costs (57) (1,402) (927) (3,100)
Increase in restricted
cash (11,876) (2,478) (43,686) (1,769)
---------- ---------- ---------- ----------
Cash provided by Financing
Activities 432,105 115,729 549,742 183,596
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Net change in cash and cash
equivalents (12,027) 10,325 20,420 5,075
---------- ---------- ---------- ----------
Cash and cash equivalents,
beginning of period 75,522 32,750 43,075 38,000
---------- ---------- ---------- ----------
Cash and cash equivalents,
end of period $ 63,495 $ 43,075 $ 63,495 $ 43,075
========== ========== ========== ==========
Three Months Three Months
ended ended Year ended Year ended
December December December December
31, 31, 31, 31,
---------- ---------- ---------- ----------
2007 2006 2007 2006
---------- ---------- ---------- ----------
un-audited (audited) un-audited (audited)
Reconciliation of Net
Income to EBITDA
(unaudited)
Net income $ 44,650 $ 23,633 $ 123,098 $ 65,419
Depreciation 11,545 8,189 40,622 27,304
Amortization of deferred
charges 1,675 1,247 6,113 4,127
Interest income (1,184) (1,069) (4,861) (3,605)
Interest expense 7,883 5,612 22,421 23,905
---------- ---------- ---------- ----------
EBITDA (unaudited) (1)
from continuing operations $ 64,569 $ 37,612 $ 187,393 $ 117,150
---------- ---------- ---------- ----------
EBITDA (unaudited) (1)
from discontinued
operations $ (7) $ 8,975 $ 93,113 $ 46,103
---------- ---------- ---------- ----------
EBITDA (unaudited) (1) $ 64,562 $ 46,587 $ 280,506 $ 163,253
========== ========== ========== ==========
(1) EBITDA represents net income before interest, income tax expense,
depreciation and amortization. However, EBITDA is not a recognized
measurement under U.S. generally accepted accounting principles, or
"GAAP." We believe that the presentation of EBITDA is useful to
investors because it is frequently used by securities analysts,
investors and other interested parties in the evaluation of companies
in our industry. We also believe that EBITDA is useful in evaluating
our ability to service additional debt and make capital expenditures.
In addition, we believe that EBITDA is useful in evaluating our
operating performance and liquidity position compared to that of other
companies in our industry because the calculation of EBITDA generally
eliminates the effects of financings, income taxes and the accounting
effects of capital expenditures and acquisitions, items which may vary
for different companies for reasons unrelated to overall operating
performance and liquidity.
Contact Information: For further information please contact: Company Contact: Dimitri J. Andritsoyiannis Chief Financial Officer Danaos Corporation Athens, Greece Tel: +30 210 419 6481 E-Mail: cfo@danaos.com Iraklis Prokopakis Chief Operating Officer Danaos Corporation Athens, Greece Tel. +30 210 419 6400 E-Mail: coo@danaos.com Investor Relations and Financial Media: Nicolas Bornozis President Capital Link, Inc. New York Tel. 212-661-7566 E-Mail: nbornozis@capitallink.com