Financial Data and Key Metrics - Cash position at the end of Q3 was $306 million, with total liquidity, including the revolving credit facility, standing at $655 million, providing significant flexibility for capital deployment [1] - Net debt decreased to $111 million as of September 30, 2023, with a net debt to adjusted EBITDA ratio of 0.16x, and 48 out of 72 vessels being unencumbered and debt-free [18] - Adjusted net income decreased by $33.9 million to $143 million in Q3 2023 compared to $176.9 million in Q3 2022, primarily due to the absence of a $23.2 million ZIM dividend recognized in the prior year [31] - Adjusted EBITDA decreased by 16.5% or $35.1 million to $178 million in Q3 2023, mainly due to the non-recurrence of the ZIM dividend [34] - Interest expense decreased by $9.3 million to $3.8 million in Q3 2023, driven by significant deleveraging and a $5.8 million reduction due to lower average indebtedness [21][33] Business Line Data and Key Metrics - The company secured $178 million in contracted revenue through new charters for six container ships, including $103 million for two 13,000 TEU vessels and $68 million for two 10,000 TEU vessels [17][35] - Charter coverage for 2024 increased to 90%, with a contracted revenue backlog of $2.5 billion and an average charter duration of 3.2 years [27][35] - Vessel operating expenses increased by $300,000 to $39.5 million in Q3 2023, driven by inflationary pressures on repairs, maintenance, and insurance premiums [32] - G&A expenses decreased slightly to $7.1 million in Q3 2023 compared to $7.2 million in Q3 2022 [21] Market Data and Key Metrics - The container transport market stagnated in Q3 2023 due to inventory destocking and weak retail sales, leading to a dramatic decrease in liner company profitability [25] - Charter rates for vessels smaller than 3,000 TEU returned to pre-pandemic levels, while rates for larger vessels remained stable due to scarcity of open tonnage for 2024 [26][27] - The dry bulk market showed resilience, with the company achieving rates well ahead of expectations for its newly delivered capesize bulk carriers [28] Company Strategy and Industry Competition - The company is pursuing opportunities in both the container and dry bulk sectors, with a focus on the Cape sector and investments in Eagle Bulk for dry bulk, and new building and modern eco vessels for containers [5][6] - The company’s strategy of deleveraging has been effective, shielding it from high interest costs and providing flexibility in capital allocation [18][29] - The company increased its quarterly dividend to $0.80 per share and authorized an additional $100 million in share buybacks, having returned over $200 million to shareholders in the last 18 months [30] Management Commentary on Operating Environment and Future Outlook - Management highlighted significant uncertainty in the market and emphasized the need to be near the bottom of the market before engaging in large-scale investments [6] - The company expects charter rates in the dry bulk market to remain under pressure in the near term but will monitor the market for opportunistic expansion [28] - Management noted that liner companies are still cash-rich, but the possibility of charter amendments and extensions could increase earnings visibility in the future [10] Other Important Information - The company capitalized $3.5 million in interest expense related to vessels under construction, with interest income of $3.1 million covering over 80% of interest expense for the quarter [16] - The company’s investor presentation and updated disclosures are available on its website for further details [34][35] Q&A Session Summary Question: Opportunities in Dry Bulk and Container Markets - The company is actively pursuing opportunities in both dry bulk and container markets, with a focus on the Cape sector and modern eco vessels [4][5] - Management noted that some companies are looking to disengage from the container market due to expiring charters and a challenging environment, creating potential opportunities [8] Question: Charter Amendments and Extensions - The company has not yet seen significant requests for charter amendments or extensions but noted that such deals could be beneficial for increasing earnings visibility [9][10] Question: Market Activity for Modern Eco Vessels - Management observed that some companies are looking to sell modern eco vessels as charters expire, indicating potential opportunities in the market [7][8]

OPERATING AND FINANCIAL REVIEW AND PROSPECTS The following discussion and analysis should be read in conjunction with our interim condensed consolidated financial statements (unaudited) and the notes thereto included elsewhere in this report. Results of Operations Three months ended September 30, 2023 compared to three months ended September 30, 2022 During the three months ended September 30, 2023, Danaos had an average of 68.0 container vessels compared to 71.0 container vessels during the three months en ...

Financial Data and Key Metrics Changes - Adjusted net income for Q2 2023 was $143.4 million, or $7.14 per share, down from $157.1 million, or $7.59 per share, in Q2 2022, primarily due to the absence of a $13.9 million ZIM dividend recognized in the previous year [19][21] - Adjusted EBITDA decreased by 7.7% to $177.3 million from $192.1 million in the same quarter last year [21] - Interest expense decreased significantly to $5.3 million from $12.9 million in Q2 2022, attributed to a reduction in average indebtedness by nearly $700 million [20] - Net debt as of June 30, 2023, was reduced to $131 million, with a net debt to adjusted EBITDA ratio of 0.2 times [25] Business Line Data and Key Metrics Changes - Vessel operating expenses increased by $1.3 million to $41.9 million, with average daily vessel operating costs rising to $6,970 from $6,463 due to inflationary pressures [11] - The company secured $469 million in contracted revenue through new charters for 12 container ships, increasing the total charter backlog to $2.5 billion with a 3.3-year average charter duration [13][15] Market Data and Key Metrics Changes - The container market experienced a drop of over 50% compared to the previous year, yet the company managed to maintain operating revenues of $241 million, close to previous records [15] - The order book for vessels is at historically low levels, with fleet supply growth projected to decline significantly in the coming years against rebounding demand [8] Company Strategy and Development Direction - The company is committed to advancing its decarbonization strategy by retrofitting existing vessels and ordering new vessels that are methanol-ready [7] - The strategy includes opportunistic capital deployment in the dry bulk market, with a focus on acquiring assets at attractive prices [16][18] - The company aims to maintain its core business in container shipping while cautiously expanding into the dry bulk sector [34] Management's Comments on Operating Environment and Future Outlook - Management noted a stagnating world economy affecting the container market, but emphasized the resilience of the business model [6] - The company is focused on investing in green technologies and believes that those who do not adapt to the changing regulatory environment will face challenges [29] - Future capital deployment will prioritize modern tonnage and newbuildings, with dry bulk being a potential area for growth [44] Other Important Information - The company has spent $65.5 million of its $100 million buyback program, retiring over one million shares [4] - Cash as of the end of Q2 2023 was $293 million, with total liquidity of $653 million, providing flexibility for capital deployment [26] Q&A Session Summary Question: What has changed to give the company confidence to deploy capital aggressively? - Management indicated that they are deploying capital where they see interesting returns, particularly in green fuel-capable ships and the dry bulk market, which has favorable fundamentals [28][30] Question: Is the investment in dry bulk a long-term strategy or opportunistic? - Management clarified that while they see potential in dry bulk, it will not dominate the business, and they will be cautious in capital deployment [34][41] Question: What are the intentions regarding the Eagle investment? - The company expressed concerns about Eagle's corporate governance following recent board actions and is seeking clarification [17][38] Question: How will the company operate the newly acquired dry bulk vessels? - The company plans to operate the vessels in-house, potentially using hedging strategies if necessary, but will start by trading them in the spot market [40]

DANAOS CORPORATION OPERATING AND FINANCIAL REVIEW AND PROSPECTS The following discussion and analysis should be read in conjunction with our interim condensed consolidated financial statements (unaudited) and the notes thereto included elsewhere in this report. Results of Operations Three months ended June 30, 2023 compared to three months ended June 30, 2022 During the three months ended June 30, 2023, Danaos had an average of 68.0 containerships compared to 71.0 containerships during the three months ende ...

Danaos Corporation (NYSE:DAC) Q1 2023 Earnings Conference Call May 16, 2023 9:00 AM ET Company Participants Evangelos Chatzis - Chief Financial Officer John Coustas - Chief Executive Officer Conference Call Participants Omar Nokta - Jefferies Climent Molins - Value Investor’s Edge Operator Good day and welcome to the Danaos Corporation Conference Call to discuss the Financial Results for Three Months Ended March 31st, 2023. As a reminder, today’s call is being recorded. Hosting the call today is; Dr. John C ...

EXHIBIT 99.1 DANAOS CORPORATION OPERATING AND FINANCIAL REVIEW AND PROSPECTS The following discussion and analysis should be read in conjunction with our interim condensed consolidated financial statements (unaudited) and the notes thereto included elsewhere in this report. Results of Operations Three months ended March 31, 2023 compared to three months ended March 31, 2022 During the three months ended March 31, 2023, Danaos had an average of 68.3 containerships compared to 71.0 containerships during the t ...

[Forward-Looking Information](index=5&type=section&id=FORWARD-LOOKING%20INFORMATION) This section outlines forward-looking statements, their inherent risks, and key factors that could affect future financial results - This report contains forward-looking statements based on management's current expectations and projections. These statements are identified by words such as "anticipate," "believe," "expect," and are subject to various risks and uncertainties that could cause actual results to differ materially[14](index=14&type=chunk)[15](index=15&type=chunk) - Key factors that could affect future financial results include, but are not limited to: future operating results, the impact of the COVID-19 pandemic and the war in Ukraine, business strategies, market conditions, charter rates, financial condition and liquidity, performance of charterers, changes in regulations, and potential litigation[15](index=15&type=chunk) [PART I](index=6&type=section&id=PART%20I) [Item 3. Key Information](index=6&type=section&id=Item%203.%20Key%20Information) This section details the company's capitalization and outlines significant business, financial, and regulatory risks [Capitalization and Indebtedness](index=6&type=section&id=Capitalization%20and%20Indebtedness) As of December 31, 2022, Danaos Corporation reported total debt of **$510.9 million** and stockholders' equity of **$2.56 billion** Consolidated Capitalization as of December 31, 2022 | | Actual (in thousands) | As Adjusted (in thousands) | | :--- | :--- | :--- | | **Debt:** | | | | Senior unsecured notes | $262,766 | $262,766 | | BNP Paribas/Credit Agricole $130 mil. Facility | $120,000 | $115,000 | | Alpha Bank $55.25 mil. Facility | $55,250 | $53,375 | | Leasing obligations | $72,925 | $68,590 | | **Total debt** | **$510,941** | **$499,731** | | **Stockholders' equity:** | | | | Common stock | $203 | $203 | | Additional paid-in capital | $748,109 | $748,109 | | Accumulated other comprehensive loss | ($74,209) | ($74,209) | | Retained earnings | $1,886,311 | $1,886,311 | | **Total stockholders' equity** | **$2,560,414** | **$2,560,414** | | **Total capitalization** | **$3,071,355** | **$3,060,145** | [Risk Factors](index=8&type=section&id=RISK%20FACTORS) The company faces significant risks from market volatility, customer concentration, substantial debt, and regulations - The company's profitability is highly dependent on the cyclical and volatile containership market. Charter rates, which reached all-time highs in 2021, declined to pre-pandemic levels by the end of 2022. For example, the one-year daily rate for a 4,400 TEU Panamax containership fell from $100,000 at the end of 2021 to $24,300 at the end of December 2022[37](index=37&type=chunk) - A significant portion of revenue comes from a limited number of customers. In 2022, approximately **73%** of operating revenues were generated by six customers, with CMA CGM, MSC, and HMM accounting for **26%**, **13%**, and **12%**, respectively[50](index=50&type=chunk) - The company has substantial debt of **$510.9 million** as of December 31, 2022. Credit facilities contain financial covenants, including maintaining specified collateral coverage ratios, which could be breached if vessel values decline or charter rates fall, potentially leading to debt acceleration[98](index=98&type=chunk)[95](index=95&type=chunk) - The company is subject to increasing environmental regulations, such as the IMO's **0.5%** sulfur cap on marine fuel and new energy efficiency (EEXI) and carbon intensity (CII) standards, which could require significant capital expenditures and increase operating costs[109](index=109&type=chunk)[113](index=113&type=chunk) - As a foreign corporation, the company may be subject to a **4%** U.S. federal income tax on its U.S.-source shipping income if it does not qualify for an exemption under Section 883 of the U.S. Internal Revenue Code. There is also a risk of being classified as a Passive Foreign Investment Company (PFIC), which could result in adverse U.S. tax consequences for U.S. stockholders[164](index=164&type=chunk)[167](index=167&type=chunk) [Item 4. Information on the Company](index=48&type=section&id=Item%204.%20Information%20on%20the%20Company) Danaos Corporation owns 68 containerships and 6 newbuildings, chartered long-term, managed by a related party, and subject to extensive regulations [Business Overview and Fleet](index=50&type=section&id=Business%20Overview%20and%20Fleet) Danaos owns 68 containerships and 6 newbuildings, with **$2.1 billion** in contracted revenues and **3.4 years** average charter duration Fleet and Contracted Revenue Status | Metric | Value | | :--- | :--- | | **Operating Fleet (as of Mar 7, 2023)** | 68 containerships | | Total TEU Capacity | 421,293 TEU | | **Newbuildings (as of Mar 7, 2023)** | 6 containerships | | Total Newbuild TEU Capacity | 46,200 TEU | | **Contracted Revenue (as of Dec 31, 2022)** | ~$2.1 billion | | Average Remaining Charter Duration | 3.4 years (weighted) | - The company has **6** containerships under construction, with expected delivery in 2024. These include two **7,100 TEU** vessels and four **8,000 TEU** vessels[184](index=184&type=chunk) - In 2022, the company sold two vessels, Catherine C and Leo C, for gross proceeds of **$130 million**. It also agreed to sell the Amalia C, which was delivered in January 2023[183](index=183&type=chunk) - The company sold its remaining **7,186,950** ordinary shares of ZIM for net proceeds of **$246.6 million** in 2022 and received **$147.1 million** in dividends from ZIM during the year[186](index=186&type=chunk) [Management and Competition](index=57&type=section&id=Management%20and%20Competition) The company's fleet is managed by a related party, competing in a highly competitive market where its large fleet and long-term contracts are key advantages - Operations are managed by Danaos Shipping Co. Ltd., an entity affiliated with CEO Dr. John Coustas, under a management agreement with a term expiring on December 31, 2024[190](index=190&type=chunk)[194](index=194&type=chunk) Management Fees for 2023 | Fee Type | Amount | | :--- | :--- | | Daily Management Fee | $850 | | Daily Vessel Fee (Time Charter) | $850 | | Daily Vessel Fee (Bareboat Charter) | $425 | | Commission on Freight/Charter Hire | 1.25% | | Fee on Vessel Sale/Purchase | 0.5% of contract price | | Newbuilding Supervision Fee | $725,000 per vessel | - The company faces substantial competition from experienced shipping companies, including state-sponsored entities and those financed by the German KG system, which may offer lower charter rates due to tax benefits[199](index=199&type=chunk)[76](index=76&type=chunk) [Regulation and Compliance](index=59&type=section&id=Regulation%20and%20Compliance) The company's operations are subject to extensive international and U.S. environmental, safety, and security regulations - All vessels must be certified as "in class" by a classification society, requiring annual, intermediate, and special surveys. For 2023, **24** vessels are scheduled for drydocking[203](index=203&type=chunk)[137](index=137&type=chunk)[209](index=209&type=chunk) - The company is subject to IMO regulations, including the global **0.5%** sulfur cap on marine fuel (effective Jan 2020) and new energy efficiency (EEXI) and carbon intensity (CII) rules aimed at reducing greenhouse gas emissions, which came into force in January 2023[226](index=226&type=chunk)[251](index=251&type=chunk) - Compliance with U.S. environmental laws is critical, including the Oil Pollution Act (OPA), which imposes strict liability for oil spills, and the Clean Water Act (CWA), which regulates ballast water discharges through the Vessel General Permit (VGP)[230](index=230&type=chunk)[241](index=241&type=chunk) - Vessel security is managed under the International Ship and Port Facilities Security (ISPS) Code and the U.S. Maritime Transportation Security Act (MTSA), requiring security plans and certifications. The company must also address maritime cyber risks in its Safety Management Systems as of January 2021[256](index=256&type=chunk)[259](index=259&type=chunk) [Item 5. Operating and Financial Review and Prospects](index=76&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) This section analyzes financial performance, noting **44.1%** revenue growth to **$993.3 million**, decreased net income due to ZIM share losses, and significant debt reduction [Results of Operations](index=87&type=section&id=Results%20of%20Operations) Operating revenues rose **44.1%** to **$993.3 million** in 2022, but net income fell to **$559.2 million** due to ZIM investment losses Consolidated Financial Highlights (Years ended Dec 31) | (In thousands) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Operating revenues** | **$993,344** | **$689,505** | **$461,594** | | Income from operations | $653,436 | $358,259 | $199,480 | | **Net income** | **$559,210** | **$1,052,841** | **$153,550** | | Diluted EPS | $27.28 | $51.15 | $6.45 | | **Adjusted EBITDA** | **$851,160** | **$508,803** | **$318,331** | - **2022 vs. 2021:** The **$303.8 million** (**44.1%**) increase in operating revenue was primarily driven by a **$260.6 million** increase from higher charter rates and a **$55.8 million** increase from newly acquired vessels. The significant drop in net income was mainly due to a loss on ZIM investments in 2022 compared to a large gain in 2021[312](index=312&type=chunk)[313](index=313&type=chunk)[323](index=323&type=chunk) - **2021 vs. 2020:** The **$227.9 million** (**49.4%**) increase in operating revenue was driven by a **$107.9 million** increase from higher charter rates and improved utilization, and a **$55.7 million** increase from new vessels. Net income surged due to these revenue gains and a **$543.7 million** gain on ZIM investments[333](index=333&type=chunk)[334](index=334&type=chunk)[344](index=344&type=chunk) [Liquidity and Capital Resources](index=96&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by operating cash flows, with **$267.7 million** cash and **$382.5 million** credit available, and debt significantly reduced to **$510.9 million** Cash Flow Summary (Years ended Dec 31) | (In thousands) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | $934,741 | $428,111 | $265,679 | | Net cash from/(used in) investing activities | $176,572 | ($143,148) | ($170,736) | | Net cash used in financing activities | ($973,401) | ($220,870) | ($168,450) | - Total outstanding debt (including leaseback obligations) was reduced by **$857.6 million** during 2022, from **$1,368.5 million** at year-end 2021 to **$510.9 million** at year-end 2022[354](index=354&type=chunk)[321](index=321&type=chunk) - The company has a share repurchase program of up to **$100 million**, under which it repurchased **466,955** shares for **$28.6 million** as of December 31, 2022[359](index=359&type=chunk) Contractual Obligations as of December 31, 2022 | (In thousands) | Total | Less than 1 year | 2 – 3 years | 4 – 5 years | More than 5 years | | :--- | :--- | :--- | :--- | :--- | :--- | | Long-term debt obligations | $438,016 | $27,500 | $36,400 | $111,350 | $262,766 | | Long-term leaseback obligations | $72,925 | $27,469 | $45,456 | — | — | | Payments for newbuilding vessels | $343,839 | $31,200 | $312,639 | — | — | | Payments to our manager | $64,006 | $33,719 | $30,287 | — | — | [Critical Accounting Estimates](index=112&type=section&id=Critical%20Accounting%20Estimates) Vessel impairment is a critical accounting estimate, assessed by comparing carrying value to projected cash flows, with no impairment recorded in 2022 - The company evaluates vessels for impairment by comparing their carrying value to undiscounted projected net operating cash flows. This analysis is highly sensitive to assumptions about future charter rates for non-contracted periods[409](index=409&type=chunk) - For future charter rate estimates, management uses a benchmark of **5 to 15-year** historical averages to account for market volatility and cyclicality[412](index=412&type=chunk) - As of December 31, 2022, an impairment assessment was performed due to market volatility. The assessment concluded that no impairment was required for any vessel in the fleet[411](index=411&type=chunk)[415](index=415&type=chunk) [Item 6. Directors, Senior Management and Employees](index=118&type=section&id=Item%206.%20Directors%2C%20Senior%20Management%20and%20Employees) This section details the company's leadership, board structure, and compensation, including **€2.0 million** in executive cash compensation for 2022 Directors and Executive Officers (as of March 7, 2023) | Name | Age | Position | | :--- | :--- | :--- | | Dr. John Coustas | 66 | President and CEO and Class I Director | | Iraklis Prokopakis | 72 | Senior Vice President, COO, Treasurer and Class II Director | | Evangelos Chatzis | 49 | Chief Financial Officer and Secretary | | Dimitris Vastarouchas | 55 | Deputy Chief Operating Officer | | Petros Christodoulou | 62 | Class I Director | | Myles R. Itkin | 75 | Class I Director | | William Repko | 73 | Class III Director | | Richard Sadler | 61 | Class III Director | - Aggregate cash compensation for executive officers was **€2.0 million** (**$2.1 million**) for the year ended December 31, 2022. Non-cash share-based compensation expense for executives was **$5.4 million**[441](index=441&type=chunk) - A defined benefit retirement plan for executive officers was established effective December 14, 2022, with a prior service cost of **$14.2 million** recognized in Other Comprehensive Income[442](index=442&type=chunk) - The company has an equity compensation plan allowing for awards of common stock. In 2022, **100,000** fully vested shares were granted to executive officers[459](index=459&type=chunk)[464](index=464&type=chunk) [Item 7. Major Shareholders and Related Party Transactions](index=129&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) This section outlines related party transactions, primarily with Danaos Shipping Co. Ltd., the company's manager and largest shareholder - The company's manager, Danaos Shipping Co. Ltd., is ultimately owned by a trust for the benefit of CEO Dr. John Coustas and his family. This entity is also the company's largest stockholder[467](index=467&type=chunk) - Management fees paid to the Manager amounted to approximately **$21.9 million** in 2022, **$19.9 million** in 2021, and **$17.7 million** in 2020[469](index=469&type=chunk) - On July 1, 2021, the company acquired the remaining **51%** equity interest in Gemini Shipholdings Corporation from Virage International Ltd., a company controlled by its largest stockholder, for **$86.7 million** in cash[481](index=481&type=chunk) Major Shareholders (as of March 7, 2023) | Beneficial Owner | Number of Shares | Percentage of Common Stock | | :--- | :--- | :--- | | Danaos Investment Limited as Trustee of the 883 Trust | 9,048,502 | 44.5% | | RBF Capital LLC | 1,435,161 | 7.1% | | All executive officers and directors as a group (8 persons) | 9,315,502 | 45.8% | [Item 8. Financial Information](index=138&type=section&id=Item%208.%20Financial%20Information) This section refers to full financial statements, details legal proceedings including a **$597.9 million** claim against Hanjin Shipping, and outlines the company's dividend policy - The company has an unsecured claim of **$597.9 million** against the bankrupt Hanjin Shipping, which is not recognized on the balance sheet. A partial payment of **$3.9 million** on a separate common benefit claim was received in January 2021[497](index=497&type=chunk)[499](index=499&type=chunk)[500](index=500&type=chunk) - The company reinstated quarterly dividends in 2021. In 2022, it paid four quarterly dividends of **$0.75** per share. A dividend of **$0.75** per share was also declared for Q1 2023, payable in March 2023[502](index=502&type=chunk) [Item 10. Additional Information](index=140&type=section&id=Item%2010.%20Additional%20Information) This section details corporate structure, anti-takeover provisions, and tax implications as a Marshall Islands corporation, including potential U.S. federal income tax and PFIC risks - As of March 7, 2023, the company had **20,349,702** shares of common stock outstanding. Authorized capital consists of **750 million** common shares and **100 million** blank check preferred shares[507](index=507&type=chunk) - The company's articles of incorporation include several anti-takeover provisions, such as a classified board with staggered three-year terms, the ability to issue blank check preferred stock without shareholder approval, and prohibitions on certain business combinations with "interested stockholders" (owners of **15%** or more)[518](index=518&type=chunk)[519](index=519&type=chunk)[521](index=521&type=chunk)[526](index=526&type=chunk) - As a Marshall Islands corporation not conducting business there, the company is not subject to Marshall Islands income tax. However, its U.S.-source shipping income could be subject to a **4%** U.S. federal income tax unless it qualifies for an exemption under Section 883 of the U.S. tax code[534](index=534&type=chunk)[545](index=545&type=chunk) - There is a risk the company could be classified as a Passive Foreign Investment Company (PFIC), which would subject U.S. Holders to a disadvantageous tax regime unless they make a QEF or mark-to-market election. The company believes it was not a PFIC for the 2022 taxable year[567](index=567&type=chunk)[571](index=571&type=chunk) [Item 11. Quantitative and Qualitative Disclosures About Market Risk](index=165&type=section&id=Item%2011.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rate fluctuations and unhedged foreign currency exchange rates, with a 10 basis point rate increase impacting 2023 interest expense by **$145,000** - The company currently has no outstanding interest rate swap agreements. It previously used swaps for hedging, and deferred realized losses from these past hedges are being amortized into earnings, with **$3.6 million** reclassified in 2022[590](index=590&type=chunk)[597](index=597&type=chunk) - A sensitivity analysis indicates that a **10 basis point** (**0.10%**) increase in interest rates would result in a **$145,000** increase in interest expense for 2023 based on floating rate debt outstanding at year-end 2022[598](index=598&type=chunk) - The company has foreign currency exchange risk as all revenues are in U.S. dollars, while approximately **22.4%** of operating expenses in 2022 were in other currencies, mainly Euros. This exposure is not hedged[599](index=599&type=chunk) [PART II](index=167&type=section&id=PART%20II) [Item 15. Controls and Procedures](index=167&type=section&id=Item%2015.%20Controls%20and%20Procedures) Management and Deloitte concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2022 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2022[605](index=605&type=chunk) - Management's annual report on internal control over financial reporting concluded that, as of December 31, 2022, the company's internal control over financial reporting was effective based on the COSO framework[609](index=609&type=chunk)[610](index=610&type=chunk) - The independent auditor, Deloitte Certified Public Accountants S.A., provided an unqualified attestation report on the effectiveness of the company's internal control over financial reporting as of December 31, 2022[612](index=612&type=chunk) [Item 16. Corporate Governance and Other Disclosures](index=169&type=section&id=Item%2016.%20Corporate%20Governance%20and%20Other%20Disclosures) This section covers corporate governance, including the audit committee, auditor change to Deloitte in May 2022, share repurchase program, and differences from NYSE governance standards as a foreign private issuer - The Board of Directors has determined that Myles R. Itkin qualifies as an audit committee financial expert[614](index=614&type=chunk) - On May 11, 2022, the company dismissed PricewaterhouseCoopers S.A. ("PwC") and engaged Deloitte Certified Public Accountants S.A. as its new independent registered public accounting firm. There were no disagreements with PwC on any accounting principles or practices[627](index=627&type=chunk)[629](index=629&type=chunk) Principal Accountant Fees (in thousands) | Firm | Year | Audit Fees | Audit-related Fees | Total Fees | | :--- | :--- | :--- | :--- | :--- | | Deloitte | 2022 | $332.5 | $0 | $332.5 | | PwC | 2021 | $497.1 | $0 | $497.1 | - Under its **$100 million** share repurchase program announced in June 2022, the company repurchased **466,955** shares for **$28.6 million** through December 31, 2022[624](index=624&type=chunk)[625](index=625&type=chunk) - As a foreign private issuer, the company follows certain home country (Marshall Islands) governance practices instead of NYSE rules, notably regarding shareholder approval for equity compensation plans and certain share issuances, and the composition of its nominating committee[633](index=633&type=chunk)[634](index=634&type=chunk) [PART III](index=175&type=section&id=PART%20III) [Item 18. Financial Statements](index=175&type=section&id=Item%2018.%20Financial%20Statements) This section contains the audited consolidated financial statements for 2022 and Deloitte's unqualified auditor's reports, highlighting vessel impairment as a critical audit matter [Auditor's Report and Opinion](index=181&type=section&id=Auditor%27s%20Report%20and%20Opinion) Deloitte issued unqualified opinions on the 2022 financial statements and internal control over financial reporting, identifying vessel impairment as a critical audit matter - Deloitte issued an unqualified opinion on the Company's financial statements for the year ended December 31, 2022[649](index=649&type=chunk) - Deloitte also issued an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of December 31, 2022[661](index=661&type=chunk) - The critical audit matter identified was the impairment of long-lived assets, specifically the significant and subjective assumptions related to estimating future charter rates for unfixed days used in the undiscounted cash flow analysis[654](index=654&type=chunk)[657](index=657&type=chunk)[658](index=658&type=chunk) [Consolidated Financial Statements](index=187&type=section&id=Consolidated%20Financial%20Statements) As of December 31, 2022, total assets were **$3.40 billion**, liabilities **$839.8 million**, and stockholders' equity **$2.56 billion**, with **$559.2 million** net income Consolidated Balance Sheet Highlights (as of Dec 31) | (In thousands) | 2022 | 2021 | | :--- | :--- | :--- | | Total current assets | $372,521 | $632,492 | | Total non-current assets | $3,027,707 | $2,994,633 | | **Total assets** | **$3,400,228** | **$3,627,125** | | Total current liabilities | $228,407 | $319,307 | | Total long-term liabilities | $611,407 | $1,219,795 | | **Total liabilities** | **$839,814** | **$1,539,102** | | **Total stockholders' equity** | **$2,560,414** | **$2,088,023** | Consolidated Income Statement Highlights (Year ended Dec 31, 2022) | (In thousands) | 2022 | | :--- | :--- | | Operating Revenues | $993,344 | | Income from Operations | $653,436 | | **Net Income** | **$559,210** | [Notes to the Consolidated Financial Statements](index=192&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail accounting policies, fleet assets, newbuilding commitments, debt restructuring, related party transactions, and executive compensation plans - On July 1, 2021, the company acquired the remaining **51%** of Gemini Shipholdings for **$86.7 million**, resulting in a **$64.1 million** gain on its previously held equity interest and full consolidation of Gemini's five vessels[771](index=771&type=chunk) - The company has commitments for six newbuilding vessels with remaining payments of **$31.2 million** in 2023 and **$312.6 million** in 2024[781](index=781&type=chunk) - In 2022, the company significantly restructured its debt, extinguishing the **$815 million** Citibank/Natwest facility and replacing it with a new **$382.5 million** revolving credit facility and a **$55.25 million** facility from Alpha Bank. It also repurchased **$37.2 million** of its senior notes[813](index=813&type=chunk)[818](index=818&type=chunk) - A defined benefit retirement plan for executive officers was established in December 2022, recognizing a prior service cost of **$14.2 million**[861](index=861&type=chunk)

Danaos Corporation (NYSE:DAC) Q4 2022 Earnings Conference Call February 15, 2023 9:00 AM ET Company Participants John Coustas - Chief Executive Officer Evangelos Chatzis - Chief Financial Officer Conference Call Participants Omar Nokta - Jefferies Operator Good day and welcome to the Danaos Corporation Conference Call to discuss the Financial Results for the 3 months ended December 31, 2022. As a reminder, today’s call is being recorded. Hosting the call today is Dr. John Coustas, Chief Executive Officer of ...

Danaos Corporation (NYSE:DAC) Q3 2022 Earnings Conference Call November 8, 2022 9:00 AM ET Company Participants John Coustas - Chairman, President and Chief Executive Officer Evangelos Chatzis - Chief Financial Officer Conference Call Participants Omar Nokta - Jefferies & Company, Inc. Christian Wetherbee - Citi Research Climent Molins - Value Investor's Edge Operator Good day, and welcome to the Danaos Corporation Conference Call to discuss the financial results for the three months ended September 30, 202 ...

EXHIBIT 99.1 DANAOS CORPORATION OPERATING AND FINANCIAL REVIEW AND PROSPECTS The following discussion and analysis should be read in conjunction with our interim condensed consolidated financial statements (unaudited) and the notes thereto included elsewhere in this report. Results of Operations Three months ended September 30, 2022 compared to three months ended September 30, 2021 During the three months ended September 30, 2022, Danaos had an average of 71.0 containerships compared to 65.7 containerships ...