Danaos Corporation Reports First Quarter Results for the Period Ended March 31, 2017
Dienstag, 30.05.2017 22:30 von PR Newswire
PR Newswire
ATHENS, Greece, May 30, 2017
ATHENS, Greece, May 30, 2017 /PRNewswire/ -- Danaos Corporation ("Danaos") (NYSE: DAC), one of the world's largest independent owners of containerships, today reported unaudited results for the quarter ended March 31, 2017.
Highlights for the First Quarter Ended March 31, 2017:
- Adjusted net income1 of $24.5 million, or $0.22 per share, for the three months ended March 31, 2017 compared to $47.2 million, or $0.43 per share, for the three months ended March 31, 2016, a decrease of 48.1%.
- Operating revenues of $110.1 million for the three months ended March 31, 2017 compared to $137.5 million for the three months ended March 31, 2016, a decrease of 19.9%.
- Adjusted EBITDA1of $72.5 million for the three months ended March 31, 2017 compared to $99.4 million for the three months ended March 31, 2016, a decrease of 27.0%.
- Total contracted operating revenues were $2.0 billion as of March 31, 2017, with charters extending through 2028 and remaining average contracted charter duration of 6.4 years, weighted by aggregate contracted charter hire.
- Charter coverage of 90.0% for the next 12 months based on current operating revenues and 73.0% in terms of contracted operating days.
|
Three Months Ended March 31, 2017 Financial Summary (Expressed in thousands of United States dollars, except per share amounts) | |||
|
Three months |
Three months | ||
|
March 31, |
March 31, | ||
|
2017 |
2016 | ||
|
Operating revenues |
$110,087 |
$137,474 | |
|
Net income |
$18,443 |
$44,121 | |
|
Adjusted net income1 |
$24,522 |
$47,228 | |
|
Earnings per share |
$0.17 |
$0.40 | |
|
Adjusted earnings per share1 |
$0.22 |
$0.43 | |
|
Weighted average number of shares (in thousands) |
109,825 |
109,800 | |
|
Adjusted EBITDA1 |
$72,546 |
$99,351 | |
|
1Adjusted 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:
"The results of Danaos for the first quarter of 2017 continue to reflect the impact of the Hanjin bankruptcy on the Company's financial performance. The $22.7 million decrease in our adjusted net income was primarily attributable to $22 million of operating revenues lost from Hanjin. Excluding the off-hire days related to three 10,100 TEU vessels that were previously chartered by Hanjin and were delivered to their new charterers in April 2017, our fleet utilization increased to 98.1% compared to 94.6% in the first quarter of 2016. Including those vessels, our fleet utilization was 92.7%.
As previously reported, the Company is in breach of certain financial covenants as a result of the Hanjin bankruptcy. We had obtained a waiver for these breaches until April 1, 2017. We have asked our lenders for an extension of this waiver until July 1, 2017 and are engaged in constructive conversations to resolve this matter. In the meantime, we continue to generate positive cash flows from our operations and currently are in a position to service all our operational obligations as well as all scheduled principal and interest payments under the original terms of our debt agreements.
Charter rates increased during the month of April. These increases were considerable on a percentage basis, but still low in absolute terms at levels that may be slightly above operating expenses, but still not enough to service investment returns. This market improvement is mainly due to the commencement of the new alliances between liner companies. While we do not expect the market to return to the lows of 2016, we also see signs of the charter market tailing off. Nonetheless, the more disciplined capacity utilization strategy by the liner companies in the context of the new alliances has led to an improvement in box rates which has in turn improved the performance of our customers and reduced our counterparty credit risks.
Danaos continues to have low near term exposure to the weak spot market with charter coverage of 90% for the next 12 months based on current operating revenues and 73% in terms of contracted operating days.
During this extended period of market weakness which has presented many challenges, we remain focused on taking necessary actions to preserve the value of our company by managing our fleet efficiently and taking prudent measures to manage and ultimately deleverage our balance sheet."
Three months ended March 31, 2017 compared to the three months ended March 31, 2016
During the three months ended March 31, 2017, Danaos had an average of 55.0 containerships compared to 55.1 containerships for the three months ended March 31, 2016. Our fleet utilization for the first quarter of 2017 was 92.7%, while fleet utilization for the vessels under employment, excluding the off charter days of the vessels that were previously chartered to Hanjin Shipping ("Hanjin"), increased to 98.1% in the three months ended March 31, 2017 compared to 94.6% in the three months ended March 31, 2016.
Our adjusted net income amounted to $24.5 million, or $0.22 per share, for the three months ended March 31, 2017 compared to $47.2 million, or $0.43 per share, for the three months ended March 31, 2016. We have adjusted our net income in the three months ended March 31, 2017 for a non-cash amortization charge of $3.7 million for fees related to our 2011 comprehensive financing plan (comprised of non-cash, amortizing and accrued finance fees) and a loss on sale of Hyundai Merchant Marine ("HMM") securities of $2.4 million. Please refer to the Adjusted Net Income reconciliation table, which appears later in this earnings release.
The decrease of $22.7 million in adjusted net income for the three months ended March 31, 2017 compared to the three months ended March 31, 2016 is attributable to a $22.0 million decrease in operating revenues as a result of the Hanjin bankruptcy. A further decline in revenues of $5.4 million as a result of weaker charter market conditions was partially offset by a $2.2 million decrease in total operating expenses, a $1.6 million decrease in net finance costs mainly due to interest rate swap expirations, and a $0.9 million improvement in the operating performance of our equity investment in Gemini Shipholdings Corporation ("Gemini").
On a non-adjusted basis, our net income amounted to $18.4 million, or $0.17 per share, for the three months ended March 31, 2017 compared to net income of $44.1 million, or $0.40 per share, for the three months ended March 31, 2016.
Operating Revenues
Operating revenues decreased by 19.9%, or $27.4 million, to $110.1 million in the three months ended March 31, 2017 from $137.5 million in the three months ended March 31, 2016.
Operating revenues for the three months ended March 31, 2017 reflect:
- $22.0 million decrease in revenues in the three months ended March 31, 2017 compared to the three months ended March 31, 2016 due to loss of revenue from cancelled charters with Hanjin for eight of our vessels due to Hanjin's bankruptcy. These vessels were rechartered at lower rates and in some cases experienced off hire time in the 2017 period.
- $5.4 million decrease in revenues in the three months ended March 31, 2017 compared to the three months ended March 31, 2016 due to the re-chartering of certain of our vessels at lower rates.
Vessel Operating Expenses
Vessel operating expenses decreased by 4.8%, or $1.4 million, to $27.5 million in the three months ended March 31, 2017 from $28.9 million in the three months ended March 31, 2016. The decrease is attributable to a 3.8% decrease in the average daily operating cost per vessel during the three months ended March 31, 2017 compared to the three months ended March 31, 2016.
The average daily operating cost per vessel decreased to $5,756 per day for the three months ended March 31, 2017 from $5,985 per day for the three months ended March 31, 2016. Management believes that 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 by 9.7%, or $3.1 million, to $28.9 million in the three months ended March 31, 2017 from $32.0 million in the three months ended March 31, 2016, mainly due to decreased depreciation expense for twenty-five vessels for which we recorded an impairment charge on December 31, 2016.
Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs increased by $0.7 million, to $1.7 million in the three months ended March 31, 2017 from $1.0 million in the three months ended March 31, 2016. The increase was mainly due to the increased payments for dry-docking and special survey costs related to certain vessels over the last year.
General and Administrative Expenses
General and administrative expenses increased by $0.9 million, to $6.1 million in the three months ended March 31, 2017, from $5.2 million in the three months ended March 31, 2016. The increase was due to the increased professional fees related to the refinancing discussions with our lenders.
Other Operating Expenses
Other Operating Expenses include Voyage Expenses.
Voyage Expenses
Voyage expenses increased by $0.3 million, to $3.8 million in the three months ended March 31, 2017 from $3.5 million in the three months ended March 31, 2016.
Interest Expense and Interest Income
Interest expense increased by 3.5%, or $0.7 million, to $20.9 million in the three months ended March 31, 2017 from $20.2 million in the three months ended March 31, 2016. The increase in interest expense was mainly due to the increase in average cost of debt due to the increase in US$ Libor by almost 50 bps between the two periods, which was partially offset by a decrease in our average debt by $254.5 million, to $2,483.9 million in the three months ended March 31, 2017, from $2,738.4 million in the three months ended March 31, 2016 and a $0.4 million decrease in the amortization of deferred finance costs.
As of March 31, 2017, the debt outstanding gross of deferred finance costs was $2,474.1 million compared to $2,727.0 million as of March 31, 2016. As a result principally of the cancellation of eight charters with Hanjin, we expect the rate at which we reduce our leverage to decline.
Interest income increased by $0.5 million to $1.5 million in the three months ended March 31, 2017 compared to $1.0 million in the three months ended March 31, 2016. The increase was mainly attributed to the interest income recognized on HMM notes receivable.
Other finance costs, net
Other finance costs, net decreased by $0.1 million, to $1.0 million in the three months ended March 31, 2017 from $1.1 million in the three months ended March 31, 2016.
Equity income/(loss) on investments
Equity income on investments amounted to $0.2 million in the three months ended March 31, 2017 compared to the equity loss on investments of $0.7 million in the three months ended March 31, 2016 and relates to the improved operating performance of Gemini, in which the Company has a 49% shareholding interest.
Unrealized gain on derivatives
Unrealized gain on interest rate swaps amounted to nil in the three months ended March 31, 2017 compared to a gain of $1.1 million in the three months ended March 31, 2016. The unrealized gains in the three months ended March 31, 2016 were attributable to mark to market valuation of our swaps, which all expired by December 31, 2016.
Realized loss on derivatives
Realized loss on interest rate swaps decreased to $0.9 million in the three months ended March 31, 2017 from a loss of $3.1 million in the three months ended March 31, 2016. This decrease is attributable to swap expirations. As of December 31, 2016, all of our interest rate swaps have expired.
Other income/(expenses), net
Other income/(expenses), net decreased to $2.4 million in expenses in the three months ended March 31, 2017 from $0.4 million in income in the three months ended March 31, 2016 mainly due to a $2.4 million realized loss on sale of HMM securities in the three months ended March 31, 2017.
Adjusted EBITDA
Adjusted EBITDA decreased by 27.0%, or $26.9 million, to $72.5 million in the three months ended March 31, 2017 from $99.4 million in the three months ended March 31, 2016. As outlined earlier, this decrease is mainly attributed to a $27.4 million decrease in operating revenues, which was partially offset by a $0.9 million operating performance improvement on equity investments. Adjusted EBITDA for the three months ended March 31, 2017 is adjusted for a loss on sale of HMM securities of $2.4 million. Tables reconciling Adjusted EBITDA to Net Income can be found at the end of this earnings release.
Recent Developments
As a result of a decrease in our operating income and the charter-attached market value of certain of our vessels caused principally by the cancellation of eight charters with Hanjin Shipping, which is currently under bankruptcy proceedings with the Seoul Central District Court, we were in breach of the minimum security cover, consolidated net leverage and consolidated net worth financial covenants contained in our Bank Agreement and our other credit facilities as of March 31, 2017 and December 31, 2016. We had obtained waivers of the breaches of these financial covenants until April 1, 2017 and have requested an extension up to July 1, 2017. We have therefore classified our long-term debt, net of deferred finance costs as current. We are currently in discussions with our lenders regarding the non-compliance with these covenants, absent an extension of these waivers. However, we continue to generate positive cash flows from our operations and currently are in a position to service all our operational obligations as well as all scheduled principal and interest payments under the original terms of our debt agreements.
Conference Call and Webcast
On Wednesday, May 31, 2017 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: 1 844 802 2437 (US Toll Free Dial In), 0800 279 9489 (UK Toll Free Dial In) or +44 (0) 2075 441 375 (Standard International Dial In). Please indicate to the operator that you wish to join the Danaos Corporation earnings call.
A telephonic replay of the conference call will be available until June 7, 2017 by dialing 1 877 344 7529 (US Toll Free Dial In) or +44 (0) 2036 088 021 (Standard International Dial In) and using 10108102# as the access code.
Audio Webcast
There will also be a live and then archived webcast of the conference call through the Danaos website (www.danaos.com). Participants of the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
About Danaos Corporation
Danaos Corporation is one of the largest independent owners of modern, large-size containerships. Our current fleet of 59 containerships aggregating 352,600 TEUs, including four vessels owned by Gemini Shipholdings Corporation, a joint venture, ranks Danaos among the largest containership charter owners in the world based on total TEU capacity. Our fleet is chartered to many of the world's largest liner companies on fixed-rate charters. Our long track record of success is predicated on our efficient and rigorous operational standards and environmental controls. Danaos Corporation'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 347 unscheduled off-hire days in the three months ended March 31, 2017. 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 |
First | |
|
Ownership Days |
4,950 |
5,013 | |
|
Less Off-hire Days: |
|||
|
Scheduled Off-hire Days |
(15) |
(31) | |
|
Other Off-hire Days |
(347) |
(242) | |
|
Operating Days |
4,588 |
4,740 | |
|
Vessel Utilization |
92.7% |
94.6% | |
|
Operating Revenues (in '000s of US Dollars) |
$110,087 |
$137,474 | |
|
Average Gross Daily Charter Rate |
$23,995 |
$29,003 |
Fleet List
The following table describes in detail our fleet deployment profile as of May 30, 2017:
|
Vessel Name |
Vessel Size (TEU) |
Year |
Expiration of Charter(1) |
|||
|
Containerships |
||||||
|
Hyundai Ambition |
13,100 |
2012 |
June 2024 |
|||
|
Maersk Exeter (ex Hyundai Speed) |
13,100 |
2012 |
June 2024 |
|||
|
Hyundai Smart |
13,100 |
2012 |
May 2024 |
|||
|
Hyundai Respect (ex Hyundai Tenacity) |
13,100 |
2012 |
March 2024 |
|||
|
Hyundai Honour (ex Hyundai Together) |
13,100 |
2012 |
February 2024 |
|||
|
Express Rome |
10,100 |
2011 |
August 2017 |
|||
|
Express Berlin |
10,100 |
2011 |
June 2017 |
|||
|
Express Athens |
10,100 |
2011 |
August 2017 |
|||
|
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 |
July 2017 |
|||
|
Europe |
8,468 |
2004 |
June 2017 |
|||
|
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 |
|||
|
Performance |
6,402 |
2002 |
May 2018 |
|||
|
Priority |
6,402 |
2002 |
November 2017 |
|||
|
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 |
September 2017 |
|||
|
Deva |
4,253 |
2004 |
June 2017 |
|||
|
ZIM Rio Grande |
4,253 |
2008 |
May 2020 |
|||
|
ZIM Sao Paolo |
4,253 |
2008 |
August 2020 |
|||
|
ZIM Kingston (ex OOCL Istanbul) |
4,253 |
2008 |
September 2020 |
|||
|
ZIM Monaco |
4,253 |
2009 |
November 2020 |
|||
|
ZIM Dalian (ex OOCL Novorossiysk) |
4,253 |
2009 |
February 2021 |
|||
|
ZIM Luanda |
4,253 |
2009 |
May 2021 |
|||
|
Dimitris C |
3,430 |
2001 |
February 2018 |
|||
|
Express Black Sea |
3,400 |
2011 |
February 2018 |
|||
|
Express Spain |
3,400 |
2011 |
June 2017 |
|||
|
Express Argentina |
3,400 |
2010 |
June 2017 |
|||
|
Express Brazil |
3,400 |
2010 |
June 2017 |
|||
|
Express France |
3,400 |
2010 |
June 2017 |
|||
|
Colombo |
3,314 |
2004 |
March 2019 |
|||
|
MSC Zebra |
2,602 |
2001 |
October 2017 |
|||
|
Amalia C |
2,452 |
1998 |
June 2017 |
|||
|
Danae C |
2,524 |
2001 |
June 2017 |
|||
|
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 |
February 2018 |
|||
|
Hyundai Progress |
2,200 |
1998 |
December 2017 |
|||
|
Hyundai Bridge |
2,200 |
1998 |
January 2018 |
|||
|
Hyundai Highway |
2,200 |
1998 |
January 2018 |
|||
|
Vladivostok (ex Hyundai Vladivostok) |
2,200 |
1997 |
August 2017 |
|||
|
NYK Lodestar(3) |
6,422 |
2001 |
September 2017 |
|||
|
NYK Leo(3) |
6,422 |
2002 |
February 2019 |
|||
|
Suez Canal(3) |
5,610 |
2002 |
July 2017 |
|||
|
Genoa(3) |
5,544 |
2002 |
June 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. Each such option is exercisable 15 months in advance of these dates. None of these options have been exercised to date. |
|
(3) |
Vessels acquired by Gemini Shipholdings Corporation, in which Danaos holds a 49% equity interest. |
|
DANAOS CORPORATION Condensed Statements of Income - Unaudited (Expressed in thousands of United States dollars, except per share amounts) | ||||
|
Three months |
Three months | |||
|
March 31, |
March 31, | |||
|
2017 |
2016 | |||
|
OPERATING REVENUES |
$110,087 |
$137,474 | ||
|
OPERATING EXPENSES |
||||
|
Vessel operating expenses |
(27,455) |
(28,912) | ||
|
Depreciation & amortization |
(30,592) |
(33,082) | ||
|
General & administrative |
(6,129) |
(5,216) | ||
|
Loss on sale of vessels |
- |
(36) | ||
|
Other operating expenses |
(3,839) |
(3,450) | ||
|
Income From Operations |
42,072 |
66,778 | ||
|
OTHER INCOME/(EXPENSES) |
||||
|
Interest income |
1,471 |
950 | ||
|
Interest expense |
(20,900) |
(20,158) | ||
|
Other finance expenses |
(1,047) |
(1,127) | ||
|
Equity income/(loss) on investments |
206 |
(723) | ||
|
Other income/(expenses), net |
(2,448) |
423 | ||
|
Realized loss on derivatives |
(911) |
(3,140) | ||
|
Unrealized gain on derivatives |
- |
1,118 | ||
|
Total Other Expenses, net |
(23,629) |
(22,657) | ||
|
Net Income |
$18,443 |
$44,121 | ||
|
EARNINGS PER SHARE |
||||
|
Basic & diluted earnings per share |
$0.17 |
$0.40 | ||
|
Basic & diluted weighted average number of common shares |
109,825 |
109,800 | ||
|
Non-GAAP Measures* Reconciliation of Net Income to Adjusted Net Income – Unaudited | |||
|
Three months |
Three months | ||
|
March 31, |
March 31, | ||
|
2017 |
2016 | ||
|
Net income |
$18,443 |
$44,121 | |
|
Unrealized gain on derivatives |
- |
(1,118) | |
|
Amortization of financing fees & finance fees accrued |
3,722 |
4,189 | |
|
Loss on sale of securities |
2,357 |
- | |
|
Loss on sale of vessels |
- |
36 | |
|
Adjusted Net Income |
$24,522 |
$47,228 | |
|
Adjusted Earnings Per Share |
$0.22 |
$0.43 | |
|
Weighted average number of shares (in thousands) |
109,825 |
109,800 | |
|
* 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 months ended March 31, 2017 and 2016. 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 |
As of | ||||
|
March 31, |
December 31, | ||||
|
2017 |
2016 | ||||
|
ASSETS |
|||||
|
CURRENT ASSETS |
|||||
|
Cash and cash equivalents |
$65,377 |
$73,717 | |||
|
Restricted cash |
- |
2,812 | |||
|
Accounts receivable, net |
9,358 |
8,028 | |||
|
Other current assets |
56,800 |
51,397 | |||
|
131,535 |
135,954 | ||||
|
NON-CURRENT ASSETS |
|||||
|
Fixed assets, net |
2,880,385 |
2,906,721 | |||
|
Deferred charges, net |
10,552 |
8,199 | |||
|
Investments in affiliates |
5,239 |
5,033 | |||
|
Other non-current assets |
29,388 |
71,157 | |||
|
2,925,564 |
2,991,110 | ||||
|
TOTAL ASSETS |
$3,057,099 |
$3,127,064 | |||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||
|
CURRENT LIABILITIES |
|||||
|
Long-term debt, current portion |
$2,454,696 |
$2,504,932 | |||
|
Accounts payable, accrued liabilities & other current liabilities |
60,369 |
61,349 | |||
|
2,515,065 |
2,566,281 | ||||
|
LONG-TERM LIABILITIES |
|||||
|
Other long-term liabilities |
68,766 |
73,070 | |||
|
68,766 |
73,070 | ||||
|
STOCKHOLDERS' EQUITY |
|||||
|
Common stock |
1,098 |
1,098 | |||
|
Additional paid-in capital |
546,898 |
546,898 | |||
|
Accumulated other comprehensive loss |
(124,051) |
(91,163) | |||
|
Retained earnings |
49,323 |
30,880 | |||
|
473,268 |
487,713 | ||||
|
Total liabilities and stockholders' equity |
$3,057,099 |
$3,127,064 | |||
|
DANAOS CORPORATION Condensed Statements of Cash Flows - Unaudited (Expressed in thousands of United States dollars) | ||||
|
Three months |
Three months | |||
|
March 31, |
March 31, | |||
|
2017 |
2016 | |||
|
Operating Activities: |
||||
|
Net income |
$18,443 |
$44,121 | ||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||
|
Depreciation |
28,851 |
32,047 | ||
|
Amortization of deferred drydocking & special survey costs, finance cost and |
5,463 |
5,224 | ||
|
Payments for drydocking/special survey |
(4,094) |
(3,118) | ||
|
Amortization of deferred realized losses on cash flow interest rate swaps |
911 |
1,002 | ||
|
Equity (income)/loss on investments |
(206) |
723 | ||
|
Unrealized gain on derivatives |
- |
(1,118) | ||
|
Loss on sale of securities |
2,357 |
- | ||
|
Loss on sale of vessels |
- |
36 | ||
|
Accounts receivable |
(1,330) |
(4,626) | ||
|
Other assets, current and non-current |
210 |
(14,408) | ||
|
Accounts payable and accrued liabilities |
2,042 |
2,400 | ||
|
Other liabilities, current and long-term |
(8,314) |
(879) | ||
|
Net Cash provided by Operating Activities |
44,333 |
61,404 | ||
|
Investing Activities: |
||||
|
Vessel additions and vessel acquisitions |
(1,527) |
(377) | ||
|
Investments in affiliates |
- |
(1,470) | ||
|
Net proceeds from sale of vessels |
- |
5,178 | ||
|
Net Cash provided by/(used in) Investing Activities |
(1,527) |
3,331 | ||
|
Financing Activities: |
||||
|
Debt repayment |
(53,958) |
(49,158) | ||
|
Decrease in restricted cash |
2,812 |
2,811 | ||
|
Net Cash used in Financing Activities |
(51,146) |
(46,347) | ||
|
Net Increase/(Decrease) in cash and cash equivalents |
(8,340) |
18,388 | ||
|
Cash and cash equivalents, beginning of period |
73,717 |
72,253 | ||
|
Cash and cash equivalents, end of period |
$65,377 |
$90,641 | ||
|
DANAOS CORPORATION Reconciliation of Net Income to Adjusted EBITDA (Expressed in thousands of United States dollars) | |||
|
Three months |
Three months | ||
|
March 31, |
March 31, | ||
|
2017 |
2016 | ||
|
Net income |
$18,443 |
$44,121 | |
|
Depreciation |
28,851 |
32,047 | |
|
Amortization of deferred drydocking & special survey costs |
1,741 |
1,035 | |
|
Amortization of deferred finance costs and write-offs and other |
3,722 |
4,189 | |
|
Amortization of deferred realized losses on interest rate swaps |
911 |
1,002 | |
|
Interest income |
(1,471) |
(950) | |
|
Interest expense |
17,992 |
16,851 | |
|
Loss on sale of securities |
2,357 |
- | |
|
Loss on sale of vessels |
- |
36 | |
|
Realized loss on derivatives |
- |
2,138 | |
|
Unrealized gain on derivatives |
- |
(1,118) | |
|
Adjusted EBITDA(1) |
$72,546 |
$99,351 | |
|
1) |
Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs and deferred finance costs, amortization of deferred realized losses on interest rate swaps, unrealized gain on derivatives, realized loss on derivatives, loss on sale of securities and a 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 operating performance 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. 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 months ended March 31, 2017 and 2016. 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. |
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SOURCE Danaos Corporation