Danaos Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2023
Highlights for the Fourth Quarter and Year Ended
Financial Summary
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Three Months Ended |
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Three Months Ended |
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Financial & Operating Metrics |
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Container
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Dry Bulk
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Other |
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Total |
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Container
|
|
Dry Bulk
|
|
Other |
|
Total |
Operating Revenues |
|
|
|
|
|
- |
|
|
|
|
|
|
- |
|
- |
|
|
Voyage Expenses, excl. commissions |
|
|
|
|
|
- |
|
|
|
|
|
|
- |
|
- |
|
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Time Charter Equivalent Revenues (1) |
|
|
|
|
|
- |
|
|
|
|
|
|
- |
|
- |
|
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Net income / (loss) |
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|
|
|
|
|
|
|
|
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- |
|
- |
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Adjusted net income / (loss) (2) |
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|
|
|
|
|
|
|
|
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- |
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- |
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Earnings per share, basic |
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Earnings per share, diluted |
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Adjusted earnings per share, diluted (2) |
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|
|
|
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|
|
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|
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Operating Days |
|
6,109 |
|
337 |
|
- |
|
|
|
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6,090 |
|
- |
|
- |
|
|
Time Charter Equivalent $/day (1) |
|
|
|
|
|
- |
|
|
|
|
|
|
- |
|
- |
|
|
Ownership days |
|
6,256 |
|
412 |
|
- |
|
|
|
|
6,424 |
|
- |
|
- |
|
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Average number of vessels |
|
68.0 |
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4.5 |
|
- |
|
|
|
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69.8 |
|
- |
|
- |
|
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Fleet Utilization |
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97.7% |
|
81.8% |
|
- |
|
|
|
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94.8% |
|
- |
|
- |
|
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Adjusted EBITDA (2) |
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|
|
|
|
|
|
|
|
|
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- |
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- |
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Consolidated Balance Sheet & Leverage Metrics |
As of |
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As of |
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Cash and cash equivalents |
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Undrawn revolving credit facility |
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337,500 |
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382,500 |
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Total available liquidity (3) |
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609,309 |
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|
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650,168 |
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Debt, gross of deferred finance costs |
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|
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410,516 |
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|
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510,941 |
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Net Debt (4) |
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138,707 |
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243,273 |
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LTM Adjusted EBITDA (5) |
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|
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707,002 |
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|
|
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|
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851,160 |
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Net Debt / LTM Adjusted EBITDA |
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|
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0.20x |
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|
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0.29x |
1. |
Time charter equivalent revenues, time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided below. |
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2. |
Adjusted net income/(loss), 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 provided below. |
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3. |
Total available liquidity is defined as cash and cash equivalents plus undrawn revolving credit facility |
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4. |
Net Debt is defined as total debt gross of deferred finance costs less cash and cash equivalents |
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5. |
Last twelve months Adjusted EBITDA |
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For management purposes, the Company is organized based on operating revenues generated from containership vessels and dry bulk vessels and has two reporting segments: (1) a container vessels segment and (2) a dry bulk vessels segment. The Company measures segment performance based on net income. Items included in the applicable segment’s net income are directly allocated to the extent that the items are directly or indirectly attributable to the segments. With regards to the items that are allocated by indirect calculations, their allocation is commensurate to the utilization of key resources. The Other segment includes components that are not allocated to any of the Company’s reportable segments and includes investments in an affiliate accounted for using the equity method accounting and investments in marketable securities.
Financial Summary
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Year Ended |
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Year Ended |
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Financial & Operating Metrics |
|
Container
|
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Dry Bulk
|
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Other |
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Total |
|
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Container
|
|
Dry Bulk
|
|
Other |
|
Total |
Operating Revenues |
|
|
|
|
|
- |
|
|
|
|
|
|
- |
|
- |
|
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Voyage Expenses, excl. commissions |
|
|
|
|
|
- |
|
|
|
|
|
|
- |
|
- |
|
|
Time Charter Equivalent Revenues (1) |
|
|
|
|
|
- |
|
|
|
|
|
|
- |
|
- |
|
|
Net income / (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
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Adjusted net income / (loss) (2) |
|
|
|
|
|
|
|
|
|
|
|
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- |
|
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Earnings per share, basic |
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|
|
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|
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Earnings per share, diluted |
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Adjusted earnings per share, diluted (2) |
|
|
|
|
|
|
|
|
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Operating Days |
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24,286 |
|
337 |
|
- |
|
|
|
|
25,111 |
|
- |
|
- |
|
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Time Charter Equivalent $/day (1) |
|
|
|
|
|
- |
|
|
|
|
|
|
- |
|
- |
|
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Ownership days |
|
24,850 |
|
417 |
|
- |
|
|
|
|
25,807 |
|
- |
|
- |
|
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Average number of vessels |
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68.1 |
|
1.1 |
|
- |
|
|
|
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70.7 |
|
- |
|
- |
|
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Fleet Utilization |
|
97.7% |
|
80.8% |
|
- |
|
|
|
|
97.3% |
|
- |
|
- |
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Adjusted EBITDA (2) |
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|
|
|
|
|
|
|
|
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- |
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|
1. |
Time charter equivalent revenues, time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided below. |
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2. |
Adjusted net income/(loss), 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 provided below. |
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-
In
December 2023 , we completed the acquisition of our 7th Capesize bulk carrier. This brings the total aggregate capacity of our Capesize bulk carriers fleet to 1,231,157 DWT as ofDecember 31, 2023 . Additionally, inFebruary 2024 , we entered into agreements to acquire 2 Capesize bulk carriers that aggregate 354,579 DWT. -
In
February 2024 we added two additional 8,258 TEU newbuildings to our orderbook with expected deliveries during the fourth quarter of 2026 and first quarter of 2027, respectively. As a result, we now have 12 container vessels under construction with an aggregate capacity of 91,430 TEU, with expected deliveries of six vessels in 2024, two vessels in 2025, three vessels in 2026 and one vessel in 2027. All our newbuildings are designed with the latest eco characteristics, will be methanol fuel ready, fitted with Alternative Maritime Power Units and will all be built in accordance with the latest requirements of theInternational Maritime Organization in relation to Tier III emission standards and Energy Efficiency Design Index (EEDI) Phase III. -
As of the date of this release,
Danaos has repurchased a total of 1,597,995 shares of its common stock in the open market for$99.2 million , under its share repurchase program of up to$100 million announced inJune 2022 . A$100 million increase to this program, for a total aggregate amount of$200 million , was approved by our Board onNovember 10, 2023 . -
During the last three months we added approximately
$43 million to our contracted revenue backlog through the arrangement of new charters for five container vessels in our fleet. -
As a result, total contracted cash operating revenues, on the basis of concluded charter contracts through the date of this release, are
$2.3 billion . The remaining average contracted charter duration is 3.0 years, weighted by aggregate contracted charter hire. - Contracted operating days charter coverage for our containership fleet is currently 95.8% for 2024 and 62.0% for 2025.
-
Danaos has declared a dividend of$0.80 per share of common stock for the fourth quarter of 2023, which is payable onMarch 14, 2024 , to stockholders of record as ofFebruary 28, 2024 .
Danaos’ CEO Dr.
“Danaos continued to deliver strong results in the fourth quarter of 2023, as geopolitical events continued to impact global shipping markets. Mostly recently, the conflict in the
In the fourth quarter of 2023,
As we continue to execute our strategy, we remain focused on taking actions that will ultimately benefit our shareholders.
Three months ended
During the three months ended
Our adjusted net income amounted to
Adjusted net income of our container vessels segment amounted to
Adjusted net loss of our drybulk vessels segment amounted to
Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release.
The
On a non-adjusted basis, our net income amounted to
Operating Revenues
Operating revenues decreased by 1.3%, or
Operating revenues of our container vessels segment decreased by 5.4%, or
Recently acquired drybulk vessels generated
Operating revenues of container vessels for the three months ended
-
a
$3.6 million decrease in revenues in the three months endedDecember 31, 2023 compared to the three months endedDecember 31, 2022 due to vessel disposals; -
a
$6.0 million decrease in revenues in the three months endedDecember 31, 2023 compared to the three months endedDecember 31, 2022 due to decreased amortization of assumed time charters; -
a
$6.1 million decrease in revenues in the three months endedDecember 31, 2023 compared to the three months endedDecember 31, 2022 mainly as a result of lower charter rates; which were partially offset by -
a
$2.1 million increase in revenue in the three months endedDecember 31, 2023 compared to the three months endedDecember 31, 2022 due to lower non-cash revenue recognition in accordance with US GAAP.
Vessel Operating Expenses
Vessel operating expenses increased by
Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.
Depreciation
Depreciation expense increased by 1.5%, or
Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs increased by
General and Administrative Expenses
General and administrative expenses increased by
Other Operating Expenses
Other Operating Expenses include Voyage Expenses.
Voyage Expenses
Voyage expenses increased by
Voyage expenses of container vessels segment increased by
Voyage expenses of dry bulk vessels segment were
Gain on sale of vessels
In
Interest Expense and Interest Income
Interest expense decreased by 72.3%, or
-
a
$5.3 million decrease in interest expense due to a decrease in our average indebtedness by$392.8 million between the two periods. Average indebtedness was$415.1 million in the three months endedDecember 31, 2023 , compared to average indebtedness of$807.9 million in the three months endedDecember 31, 2022 . This decrease was partially offset by an increase in our debt service cost by approximately 1.3% as a result of higher interest rates; -
a
$2.4 million decrease in interest expense due to an increase in capitalized interest expense on our vessels under construction in the three months endedDecember 31, 2023 ; and -
a
$1.7 million decrease in the amortization of deferred finance costs and debt discount.
As of
Interest income decreased by
Gain on investments
The gain on investments of
Loss on debt extinguishment
The loss on debt extinguishment of
Equity loss on investments
Equity loss on investments amounting to
Other finance expenses
Other finance expenses increased by
Loss on derivatives
Amortization of deferred realized losses on interest rate swaps remained stable at
Other income/(expenses), net
Other expenses, net were
Adjusted EBITDA
Adjusted EBITDA decreased by 2.2%, or
Adjusted EBITDA of container vessels segment decreased by 1.9%, or
Adjusted EBITDA of dry bulk vessels segment was
Year ended
During the year ended
Our adjusted net income amounted to
Adjusted net income of our container vessels segment amounted to
Adjusted net loss of drybulk vessels segment amounted to
Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release.
The
On a non-adjusted basis, our net income amounted to
Operating Revenues
Operating revenues decreased by 2.0%, or
Operating revenues of our container vessels decreased by 3.0%, or
Recently acquired drybulk vessels generated
Operating revenues of container vessels for the year ended
-
a
$27.1 million increase in revenues in the year endedDecember 31, 2023 compared to the year endedDecember 31, 2022 mainly as a result of higher charter rates; -
a
$35.4 million decrease in revenues in the year endedDecember 31, 2023 compared to the year endedDecember 31, 2022 due to decreased amortization of assumed time charters; -
a
$17.8 million decrease in revenues in the year endedDecember 31, 2023 compared to the year endedDecember 31, 2022 due to vessel disposals; and -
a
$4.0 million decrease in revenue in the year endedDecember 31, 2023 compared to the year endedDecember 31, 2022 due to lower non-cash revenue recognition in accordance with US GAAP.
Vessel Operating Expenses
Vessel operating expenses increased by
Depreciation & Amortization
Depreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs.
Depreciation
Depreciation expense decreased by 3.7%, or
Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs increased by
General and Administrative Expenses
General and administrative expenses increased by
Other Operating Expenses
Other Operating Expenses include Voyage Expenses.
Voyage Expenses
Voyage expenses increased by
Voyage expenses of container vessels segment decreased by
Voyage expenses of dry bulk vessels segment were
Gain on sale of vessels
In
Interest Expense and Interest Income
Interest expense decreased by 67.0%, or
-
a
$22.0 million decrease in interest expense due to a decrease in our average indebtedness by$619.8 million between the two periods. Average indebtedness was$450.9 million in the year endedDecember 31, 2023 , compared to average indebtedness of$1,070.7 million in the year endedDecember 31, 2022 . This decrease was partially offset by an increase in our debt service cost by approximately 2.5% as a result of higher interest rates; -
a
$12.4 million decrease in interest expense due to an increase in capitalized interest expense on our vessels under construction in the year endedDecember 31, 2023 ; -
a
$9.3 million decrease in the amortization of deferred finance costs and debt discount; and -
a
$2.1 million reduction of accumulated accrued interest that had been accrued in 2018 in relation to two of our credit facilities that were fully repaid inMay 2022 .
As of
Interest income increased by
Gain/(loss) on investments
A
Gain/(loss) on debt extinguishment
A
Equity loss on investments
Equity loss on investments amounting to
Other finance expenses
Other finance expenses increased by
Loss on derivatives
Amortization of deferred realized losses on interest rate swaps remained stable at
Other income/(expenses), net
Other expenses, net were
Income taxes
Income taxes were
Adjusted EBITDA
Adjusted EBITDA decreased by 16.9%, or
Adjusted EBITDA of container vessels segment increased by 0.9%, or
Adjusted EBITDA of dry bulk vessels segment was
Dividend Payment
Recent Developments
In
In
Conference Call and Webcast
On
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 844 802 2437 (US Toll Free Dial In), 0800 279 9489 (
A telephonic replay of the conference call will be available until
Audio Webcast
There will also be a live and then archived webcast of the conference call on the
Slide Presentation
A slide presentation regarding the Company and the containership and drybulk industry will also be available on the
About
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking statements within the meaning of the safe harbor 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. Although
Risks and uncertainties are further described in reports filed by
Visit our website at www.danaos.com
APPENDIX
Container vessels fleet utilization |
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Vessel Utilization (No. of Days) |
|
Fourth
|
|
Fourth
|
Year |
Year |
||
|
2023 |
2022 |
|
2023 |
|
2022 |
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Ownership Days |
|
6,256 |
6,424 |
24,850 |
25,807 |
|||
Less Off-hire Days: |
|
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Scheduled Off-hire Days |
|
(123) |
(311) |
(472) |
(628) |
|||
Other Off-hire Days |
|
(24) |
(23) |
(92) |
(68) |
|||
Operating Days |
|
6,109 |
6,090 |
24,286 |
25,111 |
|||
Vessel Utilization |
|
97.7% |
94.8% |
97.7% |
97.3% |
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Operating Revenues (in '000s of US$) |
|
|
|
|
|
|||
Less: Voyage Expenses excluding commissions (in '000s of US$) |
|
(437) |
(455) |
(1,662) |
(1,392) |
|||
Time Charter Equivalent Revenues (in '000s of US$) |
|
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|
|
|
|||
Time Charter Equivalent US$/per day |
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Drybulk vessels fleet utilization |
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Vessel Utilization (No. of Days) |
|
Fourth
|
|
Fourth
|
Year |
Year |
||
|
2023 |
2022 |
|
2023 |
|
2022 |
||
Ownership Days |
|
412 |
- |
417 |
- |
|||
Less Off-hire Days: |
|
|||||||
Scheduled Off-hire Days |
|
(75) |
- |
(80) |
- |
|||
Operating Days |
|
337 |
- |
337 |
- |
|||
Vessel Utilization |
|
81.8% |
80.8% |
|||||
|
|
|||||||
Operating Revenues (in '000s of US$) |
|
|
- |
|
- |
|||
Less: Voyage Expenses excluding commissions (in '000s of US$) |
|
(6,446) |
- |
(6,446) |
- |
|||
Time Charter Equivalent Revenues (in '000s of US$) |
|
|
- |
|
- |
|||
Time Charter Equivalent US$/per day |
|
|
- |
|
- |
|||
The following table describes in detail our container vessels deployment profile as of
|
|
|
Year Built |
|
Expiration of Charter(1) |
|
Hyundai Ambition |
13,100 |
|
2012 |
|
|
|
Hyundai Speed |
13,100 |
|
2012 |
|
|
|
Hyundai Smart |
13,100 |
|
2012 |
|
|
|
Hyundai Respect |
13,100 |
|
2012 |
|
|
|
Hyundai Honour |
13,100 |
|
2012 |
|
|
|
Express |
10,100 |
|
2011 |
|
|
|
Express |
10,100 |
|
2011 |
|
|
|
Express |
10,100 |
|
2011 |
|
|
|
Le Havre |
9,580 |
|
2006 |
|
|
|
Pusan C |
9,580 |
|
2006 |
|
|
|
|
9,012 |
|
2009 |
|
|
|
C Hamburg |
9,012 |
|
2009 |
|
|
|
Niledutch Lion |
8,626 |
|
2008 |
|
|
|
|
8,533 |
|
2005 |
|
|
|
Belita |
8,533 |
|
2006 |
|
|
|
CMA CGM Melisande |
8,530 |
|
2012 |
|
|
|
CMA CGM Attila |
8,530 |
|
2011 |
|
|
|
CMA CGM Tancredi |
8,530 |
|
2011 |
|
|
|
CMA CGM Bianca |
8,530 |
|
2011 |
|
|
|
CMA CGM Samson |
8,530 |
|
2011 |
|
|
|
America |
8,468 |
|
2004 |
|
|
|
|
8,468 |
|
2004 |
|
|
|
|
8,463 |
|
2005 |
|
|
|
CMA CGM Moliere |
6,500 |
|
2009 |
|
|
|
CMA CGM Musset |
6,500 |
|
2010 |
|
|
|
CMA CGM Nerval |
6,500 |
|
2010 |
|
|
|
CMA CGM Rabelais |
6,500 |
|
2010 |
|
|
|
|
6,500 |
|
2010 |
|
|
|
YM Mandate |
6,500 |
|
2010 |
|
|
|
YM Maturity |
6,500 |
|
2010 |
|
|
|
|
6,402 |
|
2002 |
|
|
|
Dimitra C |
6,402 |
|
2002 |
|
|
|
|
5,610 |
|
2002 |
|
|
|
|
5,544 |
|
2002 |
|
|
|
Wide Alpha |
5,466 |
|
2014 |
|
|
|
Stephanie C |
5,466 |
|
2014 |
|
|
|
Maersk Euphrates |
5,466 |
|
2014 |
|
|
|
|
5,466 |
|
2015 |
|
|
|
Wide |
5,466 |
|
2015 |
|
|
|
Wide Juliet |
5,466 |
|
2015 |
|
|
|
Seattle C |
4,253 |
|
2007 |
|
|
|
|
4,253 |
|
2007 |
|
|
|
Derby D |
4,253 |
|
2004 |
|
|
|
Tongala |
4,253 |
|
2004 |
|
|
|
Rio Grande |
4,253 |
|
2008 |
|
|
|
Merve A (ex ZIM Sao Paolo) |
4,253 |
|
2008 |
|
|
|
|
4,253 |
|
2008 |
|
|
|
ZIM |
4,253 |
|
2009 |
|
|
|
|
4,253 |
|
2009 |
|
|
|
ZIM |
4,253 |
|
2009 |
|
|
|
Dimitris C |
3,430 |
|
2001 |
|
|
|
|
3,400 |
|
2011 |
|
|
|
Express |
3,400 |
|
2011 |
|
|
|
Express |
3,400 |
|
2010 |
|
|
|
Express |
3,400 |
|
2010 |
|
|
|
Express |
3,400 |
|
2010 |
|
|
|
|
3,314 |
|
2004 |
|
|
|
|
3,314 |
|
2004 |
|
|
|
Zebra |
2,602 |
|
2001 |
|
|
|
Artotina |
2,524 |
|
2001 |
|
|
|
Advance |
2,200 |
|
1997 |
|
|
|
Future |
2,200 |
|
1997 |
|
|
|
Sprinter |
2,200 |
|
1997 |
|
|
|
Stride |
2,200 |
|
1997 |
|
|
|
Progress C |
2,200 |
|
1998 |
|
|
|
Bridge |
2,200 |
|
1998 |
|
|
|
Highway |
2,200 |
|
1998 |
|
|
|
Phoenix D |
2,200 |
|
1997 |
|
|
|
|
|
|
|
|
|
|
(1) Earliest date charters could expire. Some charters include options for the charterer to extend their terms. | ||||||
The following table describes the details of our Capesize drybulk vessels as of
|
||||||
|
Capacity
|
Year Built |
|
|||
Achievement |
175,966 |
2011 |
|
|||
Genius |
175,580 |
2012 |
|
|||
Ingenuity |
176,022 |
2011 |
|
|||
Integrity |
175,966 |
2010 |
|
|||
Peace |
175,858 |
2010 |
|
|||
W Trader |
175,879 |
2009 |
|
|||
E Trader |
175,886 |
2009 |
|
|||
Container vessels under construction as of
|
||||||
Hull Number |
|
Expected Delivery Year |
Minimum Charter Duration |
|||
Hull No. C7100-7 |
7,165 |
2024 |
3 Years |
|||
Hull No. C7100-8 |
7,165 |
2024 |
3 Years |
|||
Hull No. HN4009 |
8,010 |
2024 |
3 Years |
|||
Hull No. HN4010 |
8,010 |
2024 |
3 Years |
|||
Hull No. HN4011 |
8,010 |
2024 |
3 Years |
|||
Hull No. HN4012 |
8,010 |
2024 |
3 Years |
|||
Hull No. CV5900-07 |
6,014 |
2024 |
- |
|||
Hull No. CV5900-08 |
6,014 |
2025 |
- |
|||
Hull No. YZJ2023-1556 |
8,258 |
2026 |
- |
|||
Hull No. YZJ2023-1557 |
8,258 |
2026 |
- |
|||
Hull No. YZJ2024-1612 |
8,258 |
2026 |
- |
|||
Hull No. YZJ2024-1613 |
8,258 |
2027 |
- |
|||
|
||||||||
|
Three months
|
|
Three months
|
|
Year ended |
|
Year ended |
|
|
|
|
|
|||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
OPERATING REVENUES |
|
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
Vessel operating expenses |
(40,123) |
|
(40,043) |
|
(162,117) |
|
(158,972) |
|
Depreciation & amortization |
(39,077) |
|
(36,182) |
|
(147,950) |
|
(146,441) |
|
General & administrative |
(22,377) |
|
(14,891) |
|
(43,484) |
|
(36,575) |
|
Other operating expenses |
(15,769) |
|
(8,193) |
|
(41,010) |
|
(35,145) |
|
Gain on sale of vessels |
- |
|
37,225 |
|
1,639 |
|
37,225 |
|
Income From Operations |
131,969 |
|
190,399 |
|
580,661 |
|
653,436 |
|
OTHER INCOME/(EXPENSES) |
|
|
|
|
|
|
|
|
Interest income |
2,723 |
|
3,147 |
|
12,133 |
|
4,591 |
|
Interest expense |
(3,554) |
(12,980) |
(20,463) |
(62,141) |
||||
Gain/(loss) on investments |
20,917 |
- |
18,923 |
(10,987) |
||||
Gain/(loss) on debt extinguishment |
- |
(18,588) |
(2,254) |
4,351 |
||||
Other finance expenses |
(916) |
(494) |
(4,274) |
(1,590) |
||||
Equity loss on investments |
(141) |
|
- |
|
(3,993) |
|
- |
|
Other income/(expenses), net |
(164) |
|
(7,850) |
|
(812) |
|
(6,578) |
|
Realized loss on derivatives |
(913) |
|
(913) |
|
(3,622) |
|
(3,622) |
|
Total Other Income/(Expenses), net |
17,952 |
|
(37,678) |
|
(4,362) |
|
(75,976) |
|
Income Before Income Taxes |
149,921 |
|
152,721 |
|
576,299 |
|
577,460 |
|
Income taxes |
- |
|
- |
|
- |
|
(18,250) |
|
Net Income |
|
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
Basic earnings per share |
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
|
|
|
|
|
|
|
Basic weighted average number of common shares (in thousands of shares) |
19,406 |
|
20,249 |
19,879 |
|
20,482 |
||
Diluted weighted average number of common shares (in thousands of shares) |
19,461 |
|
20,268 |
19,904 |
20,501 |
|||
Non-GAAP Measures1
|
|||||||
|
Three months
|
|
Three months
|
Year ended |
|
Year ended |
|
|
|
|
|
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net income |
|
|
|
|
|
|
|
Change in fair value of investments |
(20,762) |
|
- |
(17,867) |
|
176,386 |
|
(Gain)/loss on debt extinguishment |
- |
|
18,588 |
2,254 |
|
(4,351) |
|
Gain on sale of vessels |
- |
|
(37,225) |
(1,639) |
|
(37,225) |
|
Amortization of financing fees, debt discount & finance fees accrued |
466 |
|
2,127 |
2,201 |
|
11,520 |
|
Stock based compensation |
6,340 |
|
5,440 |
6,340 |
|
5,440 |
|
Adjusted Net Income |
|
|
|
|
|
|
|
Adjusted Earnings Per Share, diluted |
|
|
|
|
|
|
|
Diluted weighted average number of shares (in thousands of shares) |
19,461 |
|
20,268 |
19,904 |
|
20,501 |
1 The Company reports its financial results in accordance with
|
|||||
|
|
As of |
|
As of |
|
|
|
||||
|
|
2023 |
|
2022 |
|
ASSETS |
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
Cash, cash equivalents and restricted cash |
|
|
|
|
|
Accounts receivable, net |
|
9,931 |
|
5,635 |
|
Other current assets |
|
220,030 |
|
99,218 |
|
|
|
501,770 |
|
372,521 |
|
NON-CURRENT ASSETS |
|
|
|
|
|
Fixed assets, net |
|
2,746,541 |
|
2,721,494 |
|
Advances for vessels under construction |
|
301,916 |
|
190,736 |
|
Deferred charges, net |
|
38,012 |
|
25,554 |
|
Other non-current assets |
|
72,897 |
|
89,923 |
|
|
|
3,159,366 |
|
3,027,707 |
|
TOTAL ASSETS |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
Long-term debt, current portion |
|
|
|
|
|
Long-term leaseback obligations, current portion |
|
- |
|
27,469 |
|
Accounts payable, accrued liabilities & other current liabilities |
|
146,860 |
|
173,438 |
|
|
|
168,160 |
|
228,407 |
|
LONG-TERM LIABILITIES |
|
|
|
|
|
Long-term debt, net |
|
382,874 |
|
402,440 |
|
Long-term leaseback obligations, net |
|
- |
|
44,542 |
|
Other long-term liabilities |
|
93,785 |
|
164,425 |
|
|
|
476,659 |
|
611,407 |
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Common stock |
|
194 |
|
203 |
|
Additional paid-in capital |
|
690,190 |
|
748,109 |
|
Accumulated other comprehensive loss |
|
(75,979) |
|
(74,209) |
|
Retained earnings |
|
2,401,912 |
|
1,886,311 |
|
|
|
3,016,317 |
|
2,560,414 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|||||||
|
Three months
|
|
Three months
|
|
Year ended |
|
Year ended |
|
|
|
|
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Operating Activities: |
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization of right-of-use assets |
33,523 |
|
33,018 |
|
129,287 |
|
134,271 |
Amortization of deferred drydocking & special survey costs, finance cost, debt discount and other finance fees accrued |
6,020 |
|
5,291 |
|
20,864 |
|
23,690 |
Amortization of assumed time charters |
(4,416) |
|
(10,443) |
|
(21,222) |
|
(56,699) |
Prior service cost and periodic cost |
507 |
|
7,846 |
|
1,613 |
|
7,846 |
(Gain)/loss on investments |
(20,762) |
|
- |
|
(17,867) |
|
176,386 |
(Gain)/loss on debt extinguishment |
- |
|
18,588 |
|
2,254 |
|
(4,351) |
Gain on sale of vessels |
- |
|
(37,225) |
|
(1,639) |
|
(37,225) |
Payments for drydocking/special survey |
(9,568) |
|
(13,780) |
|
(31,121) |
|
(29,939) |
Amortization of deferred realized losses on cash flow interest rate swaps |
913 |
|
913 |
|
3,622 |
|
3,622 |
Equity loss on investments |
141 |
|
- |
|
3,993 |
|
- |
Stock based compensation |
12,680 |
|
5,599 |
|
12,680 |
|
5,972 |
Accounts receivable |
(2,580) |
|
(503) |
|
(4,296) |
|
1,483 |
Other assets, current and non-current |
(7,208) |
|
(13,721) |
|
(18,632) |
|
(67,274) |
Accounts payable and accrued liabilities |
7,651 |
|
6,517 |
|
(154) |
|
5,860 |
Other liabilities, current and long-term |
(20,642) |
|
(9,324) |
|
(79,389) |
|
211,889 |
|
146,180 |
|
145,497 |
|
576,292 |
|
934,741 |
|
|
|
|
|
|
|
|
Investing Activities: |
|
|
|
|
|
|
|
Vessel additions and advances for vessels under construction |
(139,977) |
|
(104,001) |
|
(268,035) |
|
(199,135) |
Proceeds and advances received from sale of vessels |
- |
116,069 |
3,914 |
|
129,069 |
||
(Purchase)/sale of investments |
- |
|
- |
|
(74,407) |
|
246,638 |
|
(139,977) |
|
12,068 |
|
(338,528) |
|
176,572 |
|
|
|
|
|
|
|
|
Financing Activities: |
|
|
|
|
|
|
|
Proceeds from long-term debt, net |
- |
|
55,001 |
|
- |
|
182,726 |
Debt repayment |
(6,875) |
|
(491,928) |
|
(27,500) |
|
(892,928) |
Payments of leaseback obligations |
- |
|
(6,680) |
|
(72,925) |
|
(153,546) |
Dividends paid |
(15,533) |
|
(15,185) |
|
(60,696) |
|
(61,483) |
Repurchase of common stock |
(18,276) |
|
- |
|
(70,610) |
|
(28,553) |
Payments of accumulated accrued interest |
- |
|
- |
|
- |
|
(3,373) |
Finance costs |
- |
|
(448) |
|
(1,892) |
|
(16,244) |
|
(40,684) |
|
(459,240) |
|
(233,623) |
|
(973,401) |
Net increase/(decrease) in cash, cash equivalents and restricted cash |
(34,481) |
|
(301,675) |
|
4,141 |
|
137,912 |
Cash, cash equivalents and restricted cash, beginning of period |
306,290 |
|
569,343 |
|
267,668 |
|
129,756 |
Cash, cash equivalents and restricted cash, end of period |
|
|
|
|
|
|
|
|
|||||||
|
Three months
|
|
Three months
|
|
Year ended |
|
Year ended |
|
|
|
|
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net income |
|
|
|
|
|
|
|
Depreciation and amortization of right-of-use assets |
33,523 |
|
33,018 |
|
129,287 |
|
134,271 |
Amortization of deferred drydocking & special survey costs |
5,554 |
|
3,164 |
|
18,663 |
|
12,170 |
Amortization of assumed time charters |
(4,416) |
|
(10,443) |
|
(21,222) |
|
(56,699) |
Amortization of deferred finance costs, debt discount and commitment fees |
1,171 |
|
2,382 |
|
5,136 |
|
11,775 |
Amortization of deferred realized losses on interest rate swaps |
913 |
|
913 |
|
3,622 |
|
3,622 |
Interest income |
(2,723) |
|
(3,147) |
|
(12,133) |
|
(4,591) |
Interest expense |
3,088 |
|
10,852 |
|
18,262 |
|
50,620 |
Income taxes |
- |
|
- |
|
- |
|
18,250 |
(Gain)/loss on investments and dividend withholding taxes |
(20,762) |
- |
(17,867) |
158,136 |
|||
Gain on sale of vessels |
- |
(37,225) |
(1,639) |
(37,225) |
|||
(Gain)/loss on debt extinguishment |
- |
18,588 |
2,254 |
(4,351) |
|||
Stock based compensation |
6,340 |
|
5,599 |
|
6,340 |
|
5,972 |
Adjusted EBITDA(1) |
|
|
|
|
|
|
|
1) |
Adjusted EBITDA represents net income before interest income and expense, taxes other than withholding taxes on dividend, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs, debt discount and commitment fees, amortization of deferred realized losses on interest rate swaps, gain/loss on investments, gain/loss on debt extinguishment, gain on sale of vessels and stock based compensation. However, Adjusted EBITDA is not a recognized measurement under |
|
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 |
||
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Three Months Ended |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
Container
|
|
Dry Bulk
|
|
Other |
|
Total |
|
|
Container
|
|
Dry Bulk
|
|
Other |
|
Total |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
- |
|
|
Depreciation and amortization of right-of-use assets |
|
32,343 |
|
1,180 |
|
- |
|
33,523 |
|
|
33,018 |
|
- |
|
- |
|
33,018 |
Amortization of deferred drydocking & special survey costs |
|
5,554 |
|
- |
|
- |
|
5,554 |
|
|
3,164 |
|
- |
|
- |
|
3,164 |
Amortization of assumed time charters |
|
(4,416) |
|
- |
|
- |
|
(4,416) |
|
|
(10,443) |
|
- |
|
- |
|
(10,443) |
Amortization of deferred finance costs, debt discount and commitment fees |
|
1,171 |
|
- |
|
- |
|
1,171 |
|
|
2,382 |
|
- |
|
- |
|
2,382 |
Amortization of deferred realized losses on interest rate swaps |
|
913 |
|
- |
|
- |
|
913 |
|
|
913 |
|
- |
|
- |
|
913 |
Interest income |
|
(2,686) |
|
(37) |
|
- |
|
(2,723) |
|
|
(3,147) |
|
- |
|
- |
|
(3,147) |
Interest expense |
|
3,088 |
|
- |
|
- |
|
3,088 |
|
|
10,852 |
|
- |
|
- |
|
10,852 |
(Gain)/loss on investments and dividend withholding taxes |
|
- |
|
- |
|
(20,762) |
|
(20,762) |
|
|
- |
|
- |
|
- |
|
- |
Gain on sale of vessels |
|
- |
|
- |
|
- |
|
- |
|
|
(37,225) |
|
- |
|
- |
|
(37,225) |
(Gain)/loss on debt extinguishment |
|
- |
|
- |
|
- |
|
- |
|
|
18,588 |
|
- |
|
- |
|
18,588 |
Stock based compensation |
|
6,120 |
|
220 |
|
- |
|
6,340 |
|
|
5,599 |
|
- |
|
- |
|
5,599 |
Adjusted EBITDA(1) |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
- |
|
|
1. |
Adjusted EBITDA represents net income before interest income and expense, taxes other than withholding taxes on dividend, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs, debt discount and commitment fees, amortization of deferred realized losses on interest rate swaps, gain/loss on investments, gain/loss on debt extinguishment, gain on sale of vessels and stock based compensation. However, Adjusted EBITDA is not a recognized measurement under |
|
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 |
||
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
Year Ended |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
Container
|
|
Dry Bulk
|
|
Other |
|
Total |
|
|
Container
|
|
Dry Bulk
|
|
Other |
|
Total |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
Depreciation and amortization of right-of-use assets |
|
128,097 |
|
1,190 |
|
- |
|
129,287 |
|
|
134,271 |
|
- |
|
- |
|
134,271 |
Amortization of deferred drydocking & special survey costs |
|
18,663 |
|
- |
|
- |
|
18,663 |
|
|
12,170 |
|
- |
|
- |
|
12,170 |
Amortization of assumed time charters |
|
(21,222) |
|
- |
|
- |
|
(21,222) |
|
|
(56,699) |
|
- |
|
- |
|
(56,699) |
Amortization of deferred finance costs, debt discount and commitment fees |
|
5,136 |
|
- |
|
- |
|
5,136 |
|
|
11,775 |
|
- |
|
- |
|
11,775 |
Amortization of deferred realized losses on interest rate swaps |
|
3,622 |
|
- |
|
- |
|
3,622 |
|
|
3,622 |
|
- |
|
- |
|
3,622 |
Interest income |
|
(12,096) |
|
(37) |
|
- |
|
(12,133) |
|
|
(4,591) |
|
- |
|
- |
|
(4,591) |
Interest expense |
|
18,262 |
|
- |
|
- |
|
18,262 |
|
|
50,620 |
|
- |
|
- |
|
50,620 |
Income taxes |
|
- |
|
- |
|
- |
|
- |
|
|
- |
|
- |
|
18,250 |
|
18,250 |
(Gain)/loss on investments and dividend withholding taxes |
|
- |
|
- |
|
(17,867) |
|
(17,867) |
|
|
- |
|
- |
|
158,136 |
|
158,136 |
Gain on sale of vessels |
|
(1,639) |
|
- |
|
- |
|
(1,639) |
|
|
(37,225) |
|
- |
|
- |
|
(37,225) |
(Gain)/loss on debt extinguishment |
|
2,254 |
|
- |
|
- |
|
2,254 |
|
|
(4,351) |
|
- |
|
- |
|
(4,351) |
Stock based compensation |
|
6,120 |
|
220 |
|
- |
|
6,340 |
|
|
5,972 |
|
- |
|
- |
|
5,972 |
Adjusted EBITDA(1) |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
1. |
Adjusted EBITDA represents net income before interest income and expense, taxes other than withholding taxes on dividend, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs, debt discount and commitment fees, amortization of deferred realized losses on interest rate swaps, gain/loss on investments, gain/loss on debt extinguishment, gain on sale of vessels and stock based compensation. However, Adjusted EBITDA is not a recognized measurement under |
|
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 |
||
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Three Months Ended |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
Container
|
|
Dry Bulk
|
|
Other |
|
Total |
|
|
Container
|
|
Dry Bulk
|
|
Other |
|
Total |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
- |
|
|
Change in fair value of investments |
|
- |
|
- |
|
(20,762) |
|
(20,762) |
|
|
- |
|
- |
|
- |
|
- |
(Gain)/loss on debt extinguishment |
|
- |
|
- |
|
- |
|
- |
|
|
18,588 |
|
- |
|
- |
|
18,588 |
Gain on sale of vessels |
|
- |
|
- |
|
- |
|
- |
|
|
(37,225) |
|
- |
|
- |
|
(37,225) |
Amortization of financing fees, debt discount & finance fees accrued |
|
466 |
|
- |
|
- |
|
466 |
|
|
2,127 |
|
- |
|
- |
|
2,127 |
Stock based compensation |
|
6,120 |
|
220 |
|
- |
|
6,340 |
|
|
5,440 |
|
- |
|
- |
|
5,440 |
Adjusted Net Income(1) |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
- |
|
|
Adjusted Earnings per Share, diluted |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
- |
|
|
Diluted weighted average number of shares (in thousands of shares) |
|
19,461 |
|
|
|
|
20,268 |
||||||||||
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
Year Ended |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
Container
|
|
Dry Bulk
|
|
Other |
|
Total |
|
|
Container
|
|
Dry Bulk
|
|
Other |
|
Total |
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
Change in fair value of investments |
|
- |
|
- |
|
(17,867) |
|
(17,867) |
|
|
- |
|
- |
|
176,386 |
|
176,386 |
(Gain)/loss on debt extinguishment |
|
2,254 |
|
- |
|
- |
|
2,254 |
|
|
(4,351) |
|
- |
|
- |
|
(4,351) |
Gain on sale of vessels |
|
(1,639) |
|
- |
|
- |
|
(1,639) |
|
|
(37,225) |
|
- |
|
- |
|
(37,225) |
Amortization of financing fees, debt discount & finance fees accrued |
|
2,201 |
|
- |
|
- |
|
2,201 |
|
|
11,520 |
|
- |
|
- |
|
11,520 |
Stock based compensation |
|
6,120 |
|
220 |
|
- |
|
6,340 |
|
|
5,440 |
|
- |
|
- |
|
5,440 |
Adjusted Net Income(1) |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
Adjusted Earnings per Share, diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average number of shares (in thousands of shares) |
|
19,904 |
|
|
|
|
20,501 |
1 The Company reports its financial results in accordance with
View source version on businesswire.com: https://www.businesswire.com/news/home/20240213662691/en/
Company Contact:
Chief Financial Officer
Tel.: +30 210 419 6480
E-Mail: cfo@danaos.com
Investor Relations and Financial Media
Tel. 212-359-2228
E-Mail: danaos@rosecoglobal.com
Source: