Danaos(US:DAC)2023-05-15 16:00Financial Position - As of March 31, 2023, total debt amounted to $497,437,000, with an adjusted total of $431,141,000 after accounting for recent repayments and share repurchases[60][61] - Stockholders' equity was reported at $2,690,237,000, with an adjusted figure of $2,680,441,000[60][61] - The total capitalization as of March 31, 2023, was $3,187,674,000, adjusted to $3,111,582,000[60][61] - Total current assets rose to $469,785,000 as of March 31, 2023, compared to $372,521,000 at the end of 2022, marking an increase of about 26.1%[74] - Total liabilities decreased to $791,085,000 as of March 31, 2023, down from $839,814,000 at the end of 2022, a reduction of approximately 5.8%[74] - Retained earnings increased to $2,017,250,000 as of March 31, 2023, compared to $1,886,311,000 at the end of 2022, reflecting a growth of about 6.9%[74] - Total stockholders' equity reached $2,690,237,000 as of March 31, 2023, up from $2,560,414,000 at the end of 2022, indicating an increase of approximately 5.1%[74] Revenue and Income - Operating revenues for Q1 2023 increased to $243,574,000, up from $229,901,000 in Q1 2022, representing a growth of approximately 5.8%[76] - Net income for Q1 2023 was $146,201,000, a decrease of 56% compared to $331,465,000 in Q1 2022[76] - Basic earnings per share for Q1 2023 were $7.18, down from $16.02 in Q1 2022, reflecting a decline of approximately 55.2%[76] - The company reported a gain on the sale of vessels amounting to $1,639,000 in Q1 2023[76] - Interest expense decreased significantly to $6,722,000 in Q1 2023 from $17,114,000 in Q1 2022, a reduction of approximately 60.8%[76] - Net income for the three months ended March 31, 2023, was $146.2 million, a decrease of 56% compared to $331.5 million in the same period of 2022[84] Cash Flow and Investments - Net cash provided by operating activities increased to $127.6 million, up 6% from $119.5 million year-over-year[84] - Cash and cash equivalents at the end of the period reached $359.6 million, compared to $198.7 million at the end of the same period last year, representing an increase of 81%[84] - Net cash used in investing activities was $(6.1) million, a decrease from $11.0 million in the prior year, indicating a shift in investment strategy[84] - Payments of long-term debt decreased significantly to $6.9 million from $24.3 million, reflecting improved debt management[84] - The company invested $4.3 million in Carbon Termination Technologies Corporation, representing a 49% ownership interest, focusing on decarbonization technologies for the shipping industry[98] Debt Management - The Company incurred interest expense of $9.5 million for the three months ended March 31, 2023, compared to $13.7 million for the same period in 2022, indicating a decrease of 30.2%[110] - As of March 31, 2023, total long-term debt was $431.141 million, down from $438.016 million as of December 31, 2022, reflecting a reduction of 1.99%[108] - The secured long-term debt, including current portion, had a book value of $168.375 million as of March 31, 2023, compared to $175.250 million as of December 31, 2022[122] - The fair value of unsecured long-term debt was estimated at $256.197 million as of March 31, 2023, slightly lower than its book value of $262.766 million[122] Fleet and Operations - The fleet deployment profile includes vessels with charter rates ranging from $18,500 to $64,918, with several contracts expiring between 2023 and 2028[63][64] - The company has contracted employment for multiple vessels with HMM, Hapag Lloyd, and MSC, indicating strong customer relationships[63] - The company has contracted 8 vessels under construction, with expected delivery in 2024, and charter rates ranging from $36,000 to $42,000 per day[67] - The charter rates for existing vessels include rates such as $25,500 for ZIM Kingston and $53,000 for ZIM Monaco, with various expiration dates extending to 2026[65] - The company has options for charter extensions, with some contracts allowing for extensions of up to 6 months at the same rate[65] - The company has a diverse fleet with vessels built between 2001 and 2024, ensuring operational flexibility[67] Market Conditions and Risks - The company continues to face near-term impacts from elevated inflation and rising interest rates, which may increase the cost of capital[57] - The company anticipates potential risks affecting future performance, including global economic conditions and demand for seaborne transportation[69] - The company is actively monitoring the impact of geopolitical events, such as the conflict in Ukraine, on shipping routes and operations[69] Shareholder Actions - The company declared dividends of $0.75 per share for Q1 2023, totaling $15,262,000[81] - The Company declared a dividend of $0.75 per share, amounting to $15.3 million, paid on March 14, 2023, compared to $15.5 million in the same period of 2022[126] - The Company repurchased 40,500 shares for $2.2 million in the three months ended March 31, 2023, bringing total repurchases to 466,955 shares for $28.6 million until December 31, 2022[127] Compliance and Commitments - The Company maintained compliance with financial covenants, including a minimum liquidity requirement of $30 million and a maximum consolidated debt to consolidated EBITDA ratio of 6.5x as of March 31, 2023[113] - The Company has outstanding commitments under vessel construction contracts and buyback obligations as of March 31, 2023[125]