Danaos Corporation Reports Results for the Fourth Quarter and Year Ended December 31, 2023

Danaos Corporation (“Danaos”) (NYSE: DAC), one of the world’s largest independent owners of containerships, today reported unaudited results for the fourth quarter and the year ended December 31, 2023.

Highlights for the Fourth Quarter and Year Ended December 31, 2023:

Financial Summary Three Months Ended December 31, 2023 and Three Months Ended December 31, 2022 Unaudited (Expressed in thousands of United States dollars, except as otherwise stated)
		Three Months Ended									Three Months Ended
		December 31, 2023									December 31, 2022
Financial & Operating Metrics		Container Vessels		Dry Bulk Vessels		Other		Total			Container Vessels		Dry Bulk Vessels		Other		Total
Operating Revenues		$238,924		$10,391		-		$249,315			$252,483		-		-		$252,483
Voyage Expenses, excl. commissions		$(437)		$(6,446)		-		$(6,883)			$(455)		-		-		$(455)
Time Charter Equivalent Revenues (1)		$238,487		$3,945		-		$242,432			$252,028		-		-		$252,028
Net income / (loss)		$130,996		$(1,851)		$20,776		$149,921			$152,721		-		-		$152,721
Adjusted net income / (loss) (2)		$137,582		$(1,631)		$14		$135,965			$141,651		-		-		$141,651
Earnings per share, basic								$7.73									$7.54
Earnings per share, diluted								$7.70									$7.54
Adjusted earnings per share, diluted (2)								$6.99									$6.99
Operating Days		6,109		337		-					6,090		-		-
Time Charter Equivalent $/day (1)		$39,039		$11,706		-					$41,384		-		-
Ownership days		6,256		412		-					6,424		-		-
Average number of vessels		68.0		4.5		-					69.8		-		-
Fleet Utilization		97.7%		81.8%		-					94.8%		-		-
Adjusted EBITDA (2)		$173,083		$(488)		$14		$172,609			$176,422		-		-		$176,422
Consolidated Balance Sheet & Leverage Metrics					As of December 31, 2023										As of December 31, 2022
Cash and cash equivalents								$271,809									$267,668
Undrawn revolving credit facility								337,500									382,500
Total available liquidity (3)								609,309									650,168
Debt, gross of deferred finance costs								410,516									510,941
Net Debt (4)								138,707									243,273
LTM Adjusted EBITDA (5)								707,002									851,160
Net Debt / LTM Adjusted EBITDA								0.20x									0.29x

1.		Time charter equivalent revenues, time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided below.
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.
3.		Total available liquidity is defined as cash and cash equivalents plus undrawn revolving credit facility
4.		Net Debt is defined as total debt gross of deferred finance costs less cash and cash equivalents
5.		Last twelve months Adjusted EBITDA

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 Year Ended December 31, 2023 and Year Ended December 31, 2022 Unaudited (Expressed in thousands of United States dollars, except as otherwise stated)
		Year Ended									Year Ended
		December 31, 2023									December 31, 2022
Financial & Operating Metrics		Container Vessels		Dry Bulk Vessels		Other		Total			Container Vessels		Dry Bulk Vessels		Other		Total
Operating Revenues		$963,192		$10,391		-		$973,583			$993,344		-		-		$993,344
Voyage Expenses, excl. commissions		$(1,662)		$(6,446)		-		$(8,108)			$(1,392)		-		-		$(1,392)
Time Charter Equivalent Revenues (1)		$961,530		$3,945		-		$965,475			$991,952		-		-		$991,952
Net income / (loss)		$563,279		$(1,910)		$14,930		$576,299			$588,447		-		$(29,237)		$559,210
Adjusted net income / (loss) (2)		$572,215		$(1,690)		$(2,937)		$567,588			$563,831		-		$147,149		$710,980
Earnings per share, basic								$28.99									$27.30
Earnings per share, diluted								$28.95									$27.28
Adjusted earnings per share, diluted (2)								$28.52									$34.68
Operating Days		24,286		337		-					25,111		-		-
Time Charter Equivalent $/day (1)		$39,592		$11,706		-					$39,503		-		-
Ownership days		24,850		417		-					25,807		-		-
Average number of vessels		68.1		1.1		-					70.7		-		-
Fleet Utilization		97.7%		80.8%		-					97.3%		-		-
Adjusted EBITDA (2)		$710,476		$(537)		$(2,937)		$707,002			$704,011		-		$147,149		$851,160

1.		Time charter equivalent revenues, time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided below.
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.

• In December 2023, we completed the acquisition of our 7^th Capesize bulk carrier. This brings the total aggregate capacity of our Capesize bulk carriers fleet to 1,231,157 DWT as of December 31, 2023. Additionally, in February 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 the International 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 in June 2022. A $100 million increase to this program, for a total aggregate amount of $200 million, was approved by our Board on November 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 on March 14, 2024, to stockholders of record as of February 28, 2024.

Danaos’ CEO Dr. John Coustas commented:

“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 Middle East expanded to the seas with attacks on vessels in the Red Sea area. This dramatically altered trade routes and the performance of liner companies as most major companies decided to reroute their vessels away from the Suez Canal, sailing longer distances around the Cape of Good Hope to reach Europe. This in turn increased ton mile demand, leading to a capacity shortage that drove box rates significantly higher by up to 300%, while it is expected that box rates will remain elevated as long as the disruption continues. Against this backdrop, we have some secured additional charters for our vessels at very healthy levels.

In the fourth quarter of 2023, Danaos completed delivery of all seven Capesize vessels that we had agreed to acquire earlier in 2023. Subsequent to the end of the year, we entered into agreements to acquire two additional Capesize vessels as we continue to diversify our revenues and look to capture upside from a healthy dry bulk market. The market for Capesize vessels is showing unusual seasonal strength as Brazilian iron ore exports increase, the coal trade remains elevated, and demand for minor bulks like bauxite and agricultural commodities is following a global recovery. Recent stimulus measures in China aimed at supporting construction, infrastructure projects, and consumer demand is expected to keep demand steady as fleet growth begins to slow over the next two years. We continue to explore interesting opportunities in the dry bulk sector.

Danaos has also recently ordered two more 8,258 TEU vessels at Yangzijiang shipyard and we now have a total of four vessels under construction at that shipyard with deliveries scheduled for the second half of 2026 and the first quarter of 2027. All twelve vessels in our newbuilding program are methanol ready and are designed with the latest eco characteristics. Demand for shipyard delivery slots is very high as the industry is quickly moving to reduce carbon emissions by operating green vessels.

As we continue to execute our strategy, we remain focused on taking actions that will ultimately benefit our shareholders. Danaos is well positioned with a very strong balance sheet and significant revenue visibility into 2025. This provides us with the flexibility to return value to our shareholders through dividends and share repurchases and also pursue opportunities to ensure the long-term resilience of the company.”

Three months ended December 31, 2023 compared to the three months ended December 31, 2022

During the three months ended December 31, 2023, Danaos had an average of 68.0 container vessels and 4.5 Capesize bulk carriers compared to 69.8 container vessels during the three months ended December 31, 2022. Our container vessels utilization for the three months ended December 31, 2023 was 97.7% compared to 94.8% for the three months ended December 31, 2022. The increase in container vessels utilization was mainly due to the decreased days of scheduled dry-docking of our vessels.

Our adjusted net income amounted to $136.0 million, or $6.99 per share, for the three months ended December 31, 2023 compared to $141.7 million, or $6.99 per share, for the three months ended December 31, 2022. We have adjusted our net income in the three months ended December 31, 2023 for a $20.8 million change in fair value of investments, $6.3 million of stock based compensation and a $0.5 million non-cash fees amortization.

Adjusted net income of our container vessels segment amounted to $137.6 million for the three months ended December 31, 2023 compared to $141.7 million for the three months ended December 31, 2022. We adjusted net income of container vessels segment in the three months ended December 31, 2023 for $6.1 million of stock based compensation and a $0.5 million non-cash fees amortization.

Adjusted net loss of our drybulk vessels segment amounted to $1.6 million for the three months ended December 31, 2023 compared to none for the three months ended December 31, 2022, as we were not engaged in the drybulk vessels segment during that period. We adjusted net loss of our drybulk vessels segment in the three months ended December 31, 2023 for $0.2 million of stock based compensation.

Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release.

The $5.7 million decrease in adjusted net income for the three months ended December 31, 2023 compared to the three months ended December 31, 2022 is primarily attributable to a $17.0 million increase in total operating expenses, a $3.2 million decrease in operating revenues and a $0.1 million equity loss on investments, which were partially offset by a $7.5 million decrease in prior service cost of our defined benefit retirement plan, a $6.9 million decrease in net finance expenses and a $0.2 million increase in dividends received.

On a non-adjusted basis, our net income amounted to $149.9 million, or $7.70 earnings per diluted share, for the three months ended December 31, 2023 compared to net income of $152.7 million, or $7.54 earnings per diluted share, for the three months ended December 31, 2022. On a non-adjusted basis, the net income of our container vessels segment amounted to $131.0 million for the three months ended December 31, 2023. On a non-adjusted basis, the net loss of our drybulk vessels segment amounted to $1.9 million for the three months ended December 31, 2023.

Operating Revenues

Operating revenues decreased by 1.3%, or $3.2 million, to $249.3 million in the three months ended December 31, 2023 from $252.5 million in the three months ended December 31, 2022.

Operating revenues of our container vessels segment decreased by 5.4%, or $13.6 million, to $238.9 million in the three months ended December 31, 2023 from $252.5 million in the three months ended December 31, 2022.

Recently acquired drybulk vessels generated $10.4 million of operating revenues in the three months ended December 31, 2023 compared to no operating revenues in the three months ended December 31, 2022.

Operating revenues of container vessels for the three months ended December 31, 2023 reflect:

• a $3.6 million decrease in revenues in the three months ended December 31, 2023 compared to the three months ended December 31, 2022 due to vessel disposals;
• a $6.0 million decrease in revenues in the three months ended December 31, 2023 compared to the three months ended December 31, 2022 due to decreased amortization of assumed time charters;
• a $6.1 million decrease in revenues in the three months ended December 31, 2023 compared to the three months ended December 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 ended December 31, 2023 compared to the three months ended December 31, 2022 due to lower non-cash revenue recognition in accordance with US GAAP.

Vessel Operating Expenses

Vessel operating expenses increased by $0.1 million to $40.1 million in the three months ended December 31, 2023 from $40.0 million in the three months ended December 31, 2022, primarily as a result of the increase in the average number of vessels in our fleet, which was partially offset by the decrease in the average daily operating cost for vessels on time charters and voyage charters to $6,188 per vessel per day for the three months ended December 31, 2023 compared to $6,417 per vessel per day for the three months ended December 31, 2022. The average daily operating cost decreased mainly due to decreased insurance premiums. Management believes that our daily operating costs remain among 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 increased by 1.5%, or $0.5 million, to $33.5 million in the three months ended December 31, 2023 from $33.0 million in the three months ended December 31, 2022 mainly due to increased depreciation of 7 recently acquired Capesize bulk carriers, which was partially offset by a decreased depreciation due to the sale of 3 container vessels in November 2022 through January 2023.

Amortization of Deferred Dry-docking and Special Survey Costs

Amortization of deferred dry-docking and special survey costs increased by $2.4 million to $5.6 million in the three months ended December 31, 2023 from $3.2 million in the three months ended December 31, 2022.

General and Administrative Expenses

General and administrative expenses increased by $7.5 million, to $22.4 million in the three months ended December 31, 2023 from $14.9 million in the three months ended December 31, 2022. The increase was mainly attributable to increased stock-based compensation.

Other Operating Expenses

Other Operating Expenses include Voyage Expenses.

Voyage Expenses

Voyage expenses increased by $7.6 million to $15.8 million in the three months ended December 31, 2023 from $8.2 million in the three months ended December 31, 2022 primarily as a result of the $7.1 million increase in voyage expenses of our recently acquired 7 Capesize bulk carriers, which generated revenue from voyage charter agreements compared to no such expenses in the three months ended December 31, 2022. Total voyage expenses comprised $8.9 million commissions and $6.9 million other voyage expenses in the three months ended December 31, 2023.

Voyage expenses of container vessels segment increased by $0.5 million to $8.7 million in the three months ended December 31, 2023 from $8.2 million in the three months ended December 31, 2022 mainly due to increased commissions. Total voyage expenses of container vessels comprised $8.2 million commissions and $0.5 million other voyage expenses in the three months ended December 31, 2023.

Voyage expenses of dry bulk vessels segment were $7.1 million in the three months ended December 31, 2023 compared to no voyage expenses in the three months ended December 31, 2022. Total voyage expenses of dry bulk vessels comprised $0.7 million commissions and $6.4 million other voyage expenses in the three months ended December 31, 2023.

Gain on sale of vessels

In November 2022, we completed the sale of the container vessels Catherine C and Leo C for net proceeds of $128.0 million resulting in a gain of $37.2 million compared to no gain on sale of vessels in the three months ended December 31, 2023.

Interest Expense and Interest Income

Interest expense decreased by 72.3%, or $9.4 million, to $3.6 million in the three months ended December 31, 2023 from $13.0 million in the three months ended December 31, 2022. The decrease in interest expense is a result of:

• 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 ended December 31, 2023, compared to average indebtedness of $807.9 million in the three months ended December 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 ended December 31, 2023; and
• a $1.7 million decrease in the amortization of deferred finance costs and debt discount.

As of December 31, 2023, our outstanding debt, gross of deferred finance costs, was $410.5 million, which included $262.8 million principal amount of our Senior Notes. These balances compare to debt of $438.0 million, which included $262.8 million principal amount of our Senior Notes and our leaseback obligation was $72.9 million, gross of deferred finance costs, as of December 31, 2022.

Interest income decreased by $0.4 million to $2.7 million in the three months ended December 31, 2023 compared to $3.1 million in the three months ended December 31, 2022 mainly as a result of a decrease in average amount of time deposits between the two periods.

Gain on investments

The gain on investments of $20.9 million in the three months ended December 31, 2023 consisted of the change in fair value of our shareholding interest in Eagle Bulk (“EGLE”) of $20.8 million and dividends recognized on these shares of $0.1 million. This compares to no gain in the three months ended December 31, 2022 due to the sale of all our remaining ZIM ordinary shares in September 2022.

Loss on debt extinguishment

The loss on debt extinguishment of $18.6 million in the three months ended December 31, 2022 related to our early extinguishment of debt compared to none in the three months ended December 31, 2023.

Equity loss on investments

Equity loss on investments amounting to $0.1 million in the three months December 31, 2023 relates to our share of initial expenses of a newly established company, Carbon Termination Technologies Corporation (“CTTC”), currently engaged in the research and development of decarbonization technologies for the shipping industry.

Other finance expenses

Other finance expenses increased by $0.4 million to $0.9 million in the three months ended December 31, 2023 compared to $0.5 million in the three months ended December 31, 2022 mainly due to commitment fees for our recently established revolving credit facility.

Loss on derivatives

Amortization of deferred realized losses on interest rate swaps remained stable at $0.9 million in each of the three months ended December 31, 2023 and December 31, 2022.

Other income/(expenses), net

Other expenses, net were $0.2 million in the three months ended December 31, 2023 compared to other expenses, net of $7.9 million in the three months ended December 31, 2022. The decrease in expenses was mainly due to reclassification of prior service cost of a defined benefit obligation of $7.8 million in the three months ended December 31, 2022.

Adjusted EBITDA

Adjusted EBITDA decreased by 2.2%, or $3.8 million, to $172.6 million in the three months ended December 31, 2023 from $176.4 million in the three months ended December 31, 2022. As outlined above, the decrease is mainly attributable to a $14.2 million increase in total operating expenses and a $0.1 million equity loss on investments, which were partially offset by a $7.5 million decrease in prior service cost of our defined benefit retirement plan, a $2.9 million increase in operating revenues and a $0.1 million increase in dividends received. Adjusted EBITDA for the three months ended December 31, 2023 is adjusted for a $20.8 million change in fair value of investments and stock-based compensation of $6.3 million. Tables reconciling Adjusted EBITDA to Net Income can be found at the end of this earnings release.

Adjusted EBITDA of container vessels segment decreased by 1.9%, or $3.3 million, to $173.1 million in the three months ended December 31, 2023 from $176.4 million in the three months ended December 31, 2022.

Adjusted EBITDA of dry bulk vessels segment was ($0.5) million in the three months ended December 31, 2023. We did not have drybulk vessel operations in 2022.

Year ended December 31, 2023 compared to the year ended December 31, 2022

During the year ended December 31, 2023, Danaos had an average of 68.1 container vessels and 1.1 Capesize bulk carriers compared to 70.7 container vessels during the year ended December 31, 2022. Our container vessels utilization for the year ended December 31, 2023 was 97.7% compared to 97.3% for the year ended December 31, 2022. The increase in container vessels utilization was mainly due to the decreased days of scheduled dry-docking of our vessels.

Our adjusted net income amounted to $567.6 million, or $28.52 per share, for the year ended December 31, 2023 compared to $711.0 million, or $34.68 per share, for the year ended December 31, 2022. We have adjusted our net income in the year ended December 31, 2023 for a $17.9 million change in fair value on investments, $6.3 million of stock based compensation, a $2.3 million loss on early debt extinguishment, a $2.2 million non-cash fees amortization and a $1.6 million gain on sale of vessel.

Adjusted net income of our container vessels segment amounted to $572.2 million for the year ended December 31, 2023 compared to $563.8 million for the year ended December 31, 2022. We adjusted net income of container vessels in the year ended December 31, 2023 for $6.1 million of stock based compensation, a $2.3 million loss on early debt extinguishment, a $2.2 million non-cash fees amortization and a $1.6 million gain on sale of vessel.

Adjusted net loss of drybulk vessels segment amounted to $1.7 million for the year ended December 31, 2023 compared to none for the year ended December 31, 2022, as we were not engaged in the drybulk vessels segment during that period. We adjusted net loss of our drybulk vessels in the year ended December 31, 2023 for $0.2 million of stock based compensation.

Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release.

The $143.4 million decrease in adjusted net income for the year ended December 31, 2023 compared to the year ended December 31, 2022 is primarily attributable to a $146.1 million decrease in dividends received. We also incurred a $4.0 million equity loss on investments, a $19.7 million decrease in operating revenues and a $17.8 million increase in total operating expenses, which were partially offset by a $37.2 million decrease in net finance expenses and a $7.0 million decrease in prior service costs of our defined benefit retirement plan in the year ended December 31, 2023 compared to the year ended December 31, 2022.

On a non-adjusted basis, our net income amounted to $576.3 million, or $28.95 earnings per diluted share, for the year ended December 31, 2023 compared to net income of $559.2 million, or $27.28 earnings per diluted share, for the year ended December 31, 2022. Our net income for the year ended December 31, 2023 includes a $18.9 million gain on EGLE investment compared to a $29.2 million total loss on our ZIM investment in the year ended December 31, 2022. On a non-adjusted basis, the net income of our container vessels segment amounted to $563.3 million for the year ended December 31, 2023. On a non-adjusted basis, the net loss of our drybulk vessels segment amounted to $1.9 million for the year ended December 31, 2023.

Operating Revenues

Operating revenues decreased by 2.0%, or $19.7 million, to $973.6 million in the year ended December 31, 2023 from $993.3 million in the year ended December 31, 2022.

Operating revenues of our container vessels decreased by 3.0%, or $30.1 million, to $963.2 million in the year ended December 31, 2023 from $993.3 million in the ended December 31, 2022.

Recently acquired drybulk vessels generated $10.4 million operating revenues in the year ended December 31, 2023 compared to no operating revenues in the year ended December 31, 2022.

Operating revenues of container vessels for the year ended December 31, 2023 reflect:

• a $27.1 million increase in revenues in the year ended December 31, 2023 compared to the year ended December 31, 2022 mainly as a result of higher charter rates;
• a $35.4 million decrease in revenues in the year ended December 31, 2023 compared to the year ended December 31, 2022 due to decreased amortization of assumed time charters;
• a $17.8 million decrease in revenues in the year ended December 31, 2023 compared to the year ended December 31, 2022 due to vessel disposals; and
• a $4.0 million decrease in revenue in the year ended December 31, 2023 compared to the year ended December 31, 2022 due to lower non-cash revenue recognition in accordance with US GAAP.

Vessel Operating Expenses

Vessel operating expenses increased by $3.1 million to $162.1 million in the year ended December 31, 2023 from $159.0 million in the year ended December 31, 2022, primarily as a result of the increase in the average number of vessels in our fleet and an increase in the average daily operating cost for vessels on time charters and voyage charters to $6,607 per vessel per day for the year ended December 31, 2023 compared to $6,339 per vessel per day for the year ended December 31, 2022. The average daily operating cost increased mainly due to increased repair and maintenance expenses. Management believes that our daily operating costs remain among 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 3.7%, or $5.0 million, to $129.3 million in the year ended December 31, 2023 from $134.3 million in the year ended December 31, 2022 mainly due to decreased depreciation due to the sale of 3 container vessels in November 2022 through January 2023, which was partially offset by increased depreciation of 7 recently acquired Capesize bulk carriers.

Amortization of Deferred Dry-docking and Special Survey Costs

Amortization of deferred dry-docking and special survey costs increased by $6.5 million to $18.7 million in the year ended December 31, 2023 from $12.2 million in the year ended December 31, 2022.

General and Administrative Expenses

General and administrative expenses increased by $6.9 million to $43.5 million in the year ended December 31, 2023, from $36.6 million in the year ended December 31, 2022. The increase was mainly attributable to increased stock-based compensation.

Other Operating Expenses

Other Operating Expenses include Voyage Expenses.

Voyage Expenses

Voyage expenses increased by $5.9 million to $41.0 million in the year ended December 31, 2023 from $35.1 million in the year ended December 31, 2022 primarily as a result of the $7.1 million increase in voyage expenses of our recently acquired 7 Capesize bulk carriers, which generated revenue from voyage charter agreements compared to no such expenses in the year ended December 31, 2022. Total voyage expenses comprised $33.0 million commissions and $8.0 million other voyage expenses in the year ended December 31, 2023.

Voyage expenses of container vessels segment decreased by $1.2 million to $33.9 million in the year ended December 31, 2023 from $35.1 million in the year ended December 31, 2022 mainly due to decreased commissions. Total voyage expenses of container vessels comprised $32.3 million commissions and $1.6 million other voyage expenses in the year ended December 31, 2023.

Voyage expenses of dry bulk vessels segment were $7.1 million in the year ended December 31, 2023 compared to no voyage expenses in the year ended December 31, 2022. Total voyage expenses of dry bulk vessels comprised $0.7 million commissions and $6.4 million other voyage expenses in the three months ended December 31, 2023.

Gain on sale of vessels

In January 2023, we completed the sale of the Amalia C for net proceeds of $4.9 million resulting in a gain of $1.6 million. In November 2022, we completed the sale of the Catherine C and Leo C for net proceeds of $128.0 million resulting in a gain of $37.2 million.

Interest Expense and Interest Income

Interest expense decreased by 67.0%, or $41.6 million, to $20.5 million in the year ended December 31, 2023 from $62.1 million in the year ended December 31, 2022. The decrease in interest expense is a result of:

• 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 ended December 31, 2023, compared to average indebtedness of $1,070.7 million in the year ended December 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 ended December 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 in May 2022.

As of December 31, 2023, our outstanding debt, gross of deferred finance costs, was $410.5 million, which included $262.8 million principal amount of our Senior Notes. These balances compare to debt of $438.0 million, which included $262.8 million principal amount of our Senior Notes and our leaseback obligation was $72.9 million, gross of deferred finance costs, as of December 31, 2022.

Interest income increased by $7.5 million to $12.1 million in the year ended December 31, 2023 compared to $4.6 million in the year ended December 31, 2022 mainly as a result of increased interest rates and average amount of time deposits in the year ended December 31, 2023.

Gain/(loss) on investments

A $18.9 million gain on investments in the year ended December 31, 2023 consisted of the $17.9 million change in fair value of our shareholding interest in EGLE and $1.0 million of dividends received on this investment. This compares to a $11.0 million loss on investments in the year ended December 31, 2022, which consisted of the change in fair value of our shareholding interest in ZIM of $176.4 million and $165.4 million of dividends received on ZIM ordinary shares. We sold all our remaining ZIM ordinary shares in September 2022.

Gain/(loss) on debt extinguishment

A $2.3 million loss on early extinguishment of our leaseback obligations in the year ended December 31, 2023 compares to a $4.4 million gain on debt extinguishment in the year ended December 31, 2022 related to our early extinguishment of debt.

Equity loss on investments

Equity loss on investments amounting to $4.0 million in the year ended December 31, 2023 relates to our share of initial expenses of a newly established company, CTTC, currently engaged in the research and development of decarbonization technologies for the shipping industry.

Other finance expenses

Other finance expenses increased by $2.7 million to $4.3 million in the year ended December 31, 2023 compared to $1.6 million in the year ended December 31, 2022 mainly due to commitment fees for our recently established revolving credit facility.

Loss on derivatives

Amortization of deferred realized losses on interest rate swaps remained stable at $3.6 million in each of the years ended December 31, 2023 and December 31, 2022.

Other income/(expenses), net

Other expenses, net were $0.8 million in the year ended December 31, 2023 compared to other expenses, net of $6.6 million in the year ended December 31, 2022. The decrease in expenses was mainly due to reclassification of prior service cost of a defined benefit obligation of $7.8 million in the year ended December 31, 2022 compared to $0.8 million in the year ended December 31, 2023.

Income taxes

Income taxes were $18.3 million in the year ended December 31, 2022, related to the taxes withheld on dividend income earned on ZIM ordinary shares and compared to no income taxes in the year ended December 31, 2023.

Adjusted EBITDA

Adjusted EBITDA decreased by 16.9%, or $144.2 million, to $707.0 million in the year ended December 31, 2023 from $851.2 million in the year ended December 31, 2022. As outlined above, the decrease is primarily attributable to a $146.1 million decrease in dividends received. We also incurred a $4.0 million equity loss on investments and a $16.8 million increase in total operating expenses, which were partially offset by a $15.7 million increase in operating revenues and a $7.0 million decrease in prior service costs of our defined benefit retirement plan in the year ended December 31, 2023 compared to the year ended December 31, 2022. Adjusted EBITDA for the year ended December 31, 2023 is adjusted for a $17.9 million change in fair value of investments, $6.3 million of stock based compensation, a $2.3 million loss on debt extinguishment and a $1.6 million gain on sale of vessel. Tables reconciling Adjusted EBITDA to Net Income can be found at the end of this earnings release.

Adjusted EBITDA of container vessels segment increased by 0.9%, or $6.5 million, to $710.5 million in the year ended December 31, 2023 from $704.0 million in the year ended December 31, 2022.

Adjusted EBITDA of dry bulk vessels segment was ($0.5) million in the year ended December 31, 2023. We did not have drybulk vessel operations in 2022.

Dividend Payment

Danaos has declared a dividend of $0.80 per share of common stock for the fourth quarter of 2023, which is payable on March 14, 2024 to stockholders of record as of February 28, 2024.

Recent Developments

In February 2024, we entered into contracts for the construction of two 8,258 TEU container vessels with the latest eco design characteristics for an aggregate purchase price of $188.4 million. These container vessels are expected to be delivered to us in 2026 and 2027, respectively.

In February 2024, we entered into agreements to acquire two Capesize bulk carriers built in 2010 and 2011, respectively for an aggregate purchase price of $52.8 million. These vessels are expected to be delivered to us in April and July 2024, respectively.

Conference Call and Webcast

On Wednesday, February 14, 2024 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 [phone] (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 February 21, 2024 by dialing 1 877 344 7529 (US Toll Free Dial In) or 1-412-317-0088 (Standard International Dial In) and using 2838531# as the access code.

Audio Webcast

There will also be a live and then archived webcast of the conference call on 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.

Slide Presentation

A slide presentation regarding the Company and the containership and drybulk industry will also be available on the Danaos website (www.danaos.com).

About Danaos Corporation

Danaos Corporation is one of the largest independent owners of modern, large-size containerships. Our current fleet of 68 containerships aggregating 421,293 TEUs and 12 under construction containerships aggregating 91,430 TEUs ranks Danaos among the largest containership charter owners in the world based on total TEU capacity. Danaos has also recently invested in the dry bulk sector with the acquisition of 7 capesize bulk carriers aggregating 1,231,157 DWT, while we have also agreed to acquire a further 2 capesize bulk carriers aggregating 354,579 DWT. 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 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 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, drydocking and insurance costs, our ability to operate profitably in the drybulk sector, 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, including the conflict in Ukraine and related sanctions, the conflict in Israel and the Gaza Strip, potential disruption of shipping routes such as Houthi attacks in the Red Sea and the Gulf of Aden, 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

Container vessels fleet utilization
Vessel Utilization (No. of Days)		Fourth Quarter		Fourth Quarter		Year		Year
		2023		2022		2023		2022
Ownership Days		6,256		6,424		24,850		25,807
Less Off-hire Days:
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%
Operating Revenues (in '000s of US$)		$238,924		$252,483		$963,192		$993,344
Less: Voyage Expenses excluding commissions (in '000s of US$)		(437)		(455)		(1,662)		(1,392)
Time Charter Equivalent Revenues (in '000s of US$)		$238,487		$252,028		$961,530		$991,952
Time Charter Equivalent US$/per day		$39,039		$41,384		$39,592		$39,503
Drybulk vessels fleet utilization
Vessel Utilization (No. of Days)		Fourth Quarter		Fourth Quarter		Year		Year
		2023		2022		2023		2022
Ownership Days		412		-		417		-
Less Off-hire Days:
Scheduled Off-hire Days		(75)		-		(80)		-
Operating Days		337		-		337		-
Vessel Utilization		81.8%				80.8%
Operating Revenues (in '000s of US$)		$10,391		-		$10,391		-
Less: Voyage Expenses excluding commissions (in '000s of US$)		(6,446)		-		(6,446)		-
Time Charter Equivalent Revenues (in '000s of US$)		$3,945		-		$3,945		-
Time Charter Equivalent US$/per day		$11,706		-		$11,706		-

Fleet List

The following table describes in detail our container vessels deployment profile as of February 12, 2024:

Vessel Name		Vessel Size (TEU)		Year Built		Expiration of Charter(1)
Hyundai Ambition		13,100		2012		April 2027
Hyundai Speed		13,100		2012		April 2027
Hyundai Smart		13,100		2012		June 2027
Hyundai Respect		13,100		2012		April 2027
Hyundai Honour		13,100		2012		March 2027
Express Rome		10,100		2011		April 2027
Express Berlin		10,100		2011		August 2026
Express Athens		10,100		2011		April 2027
Le Havre		9,580		2006		June 2028
Pusan C		9,580		2006		May 2028
Bremen		9,012		2009		January 2028
C Hamburg		9,012		2009		January 2028
Niledutch Lion		8,626		2008		May 2026
Kota Manzanillo		8,533		2005		February 2026
Belita		8,533		2006		July 2026
CMA CGM Melisande		8,530		2012		January 2028
CMA CGM Attila		8,530		2011		May 2027
CMA CGM Tancredi		8,530		2011		July 2027
CMA CGM Bianca		8,530		2011		September 2027
CMA CGM Samson		8,530		2011		November 2027
America		8,468		2004		April 2028
Europe		8,468		2004		May 2028
Kota Santos		8,463		2005		August 2026
CMA CGM Moliere		6,500		2009		March 2027
CMA CGM Musset		6,500		2010		September 2025
CMA CGM Nerval		6,500		2010		November 2025
CMA CGM Rabelais		6,500		2010		January 2026
Racine (ex CMA CGM Racine)		6,500		2010		April 2026
YM Mandate		6,500		2010		January 2028
YM Maturity		6,500		2010		April 2028
Zim Savannah		6,402		2002		May 2025
Dimitra C		6,402		2002		February 2025
Suez Canal		5,610		2002		April 2026
Kota Lima		5,544		2002		November 2024
Wide Alpha		5,466		2014		May 2025
Stephanie C		5,466		2014		June 2025
Maersk Euphrates		5,466		2014		July 2025
Wide Hotel		5,466		2015		July 2025
Wide India		5,466		2015		November 2025
Wide Juliet		5,466		2015		September 2025
Seattle C		4,253		2007		October 2024
Vancouver		4,253		2007		November 2024
Derby D		4,253		2004		January 2027
Tongala		4,253		2004		November 2024
Rio Grande		4,253		2008		November 2024
Merve A (ex ZIM Sao Paolo)		4,253		2008		September 2025
Kingston (ex ZIM Kingston)		4,253		2008		June 2025
ZIM Monaco		4,253		2009		October 2024
Dalian		4,253		2009		March 2026
ZIM Luanda		4,253		2009		August 2025
Dimitris C		3,430		2001		November 2025
Express Black Sea		3,400		2011		January 2025
Express Spain		3,400		2011		January 2025
Express Argentina		3,400		2010		September 2024
Express Brazil		3,400		2010		June 2025
Express France		3,400		2010		September 2025
Singapore		3,314		2004		May 2024
Colombo		3,314		2004		January 2025
Zebra		2,602		2001		November 2024
Artotina		2,524		2001		May 2025
Advance		2,200		1997		January 2025
Future		2,200		1997		December 2024
Sprinter		2,200		1997		December 2024
Stride		2,200		1997		January 2025
Progress C		2,200		1998		November 2024
Bridge		2,200		1998		December 2024
Highway		2,200		1998		March 2024
Phoenix D		2,200		1997		March 2025
(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 February 12, 2024:
Vessel Name		Capacity (DWT)		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 February 12, 2024:
Hull Number		Vessel Size (TEU)		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		-

DANAOS CORPORATION Condensed Consolidated Statements of Income - Unaudited (Expressed in thousands of United States dollars, except per share amounts)
		Three months ended		Three months ended		Year ended		Year ended
		December 31,		December 31,		December 31,		December 31,
		2023		2022		2023		2022
OPERATING REVENUES		$249,315		$252,483		$973,583		$993,344
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		$149,921		$152,721		$576,299		$559,210
EARNINGS PER SHARE
Basic earnings per share		$7.73		$7.54		$28.99		$27.30
Diluted earnings per share		$7.70		$7.54		$28.95		$27.28
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 Reconciliation of Net Income to Adjusted Net Income – Unaudited
	Three months ended		Three months ended		Year ended		Year ended
	December 31,		December 31,		December 31,		December 31,
	2023		2022		2023		2022
Net income	$149,921		$152,721		$576,299		$559,210
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	$135,965		$141,651		$567,588		$710,980
Adjusted Earnings Per Share, diluted	$6.99		$6.99		$28.52		$34.68
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 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 and year ended December 31, 2023 and 2022. 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 Consolidated Balance Sheets - Unaudited (Expressed in thousands of United States dollars)
			As of		As of
			December 31,		December 31,
			2023		2022
ASSETS
CURRENT ASSETS
Cash, cash equivalents and restricted cash			$271,809		$267,668
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			$3,661,136		$3,400,228
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Long-term debt, current portion			$21,300		$27,500
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			$3,661,136		$3,400,228

DANAOS CORPORATION Condensed Consolidated Statements of Cash Flows - Unaudited (Expressed in thousands of United States dollars)
	Three months ended		Three months ended		Year ended		Year ended
	December 31,		December 31,		December 31,		December 31,
	2023		2022		2023		2022
Operating Activities:
Net income	$149,921		$152,721		$576,299		$559,210
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
Net Cash provided by Operating Activities	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
Net Cash provided by/(used in) Investing Activities	(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)
Net Cash used in Financing Activities	(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	$271,809		$267,668		$271,809		$267,668

DANAOS CORPORATION Reconciliation of Net Income to Adjusted EBITDA - Unaudited (Expressed in thousands of United States dollars)
	Three months ended		Three months ended		Year ended		Year ended
	December 31,		December 31,		December 31,		December 31,
	2023		2022		2023		2022
Net income	$149,921		$152,721		$576,299		$559,210
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)	$172,609		$176,422		$707,002		$851,160

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 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 and year ended December 31, 2023 and 2022. 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 Reconciliation of Net Income to Adjusted EBITDA per segment Three Months Ended December 31, 2023 and Three Months Ended December 31, 2022 Unaudited (Expressed in thousands of United States dollars)
		Three Months Ended									Three Months Ended
		December 31, 2023									December 31, 2022
		Container Vessels		Dry Bulk Vessels		Other		Total			Container Vessels		Dry Bulk Vessels		Other		Total
Net income		$130,996		$(1,851)		$20,776		$149,921			$152,721		-		-		$152,721
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)		$173,083		$(488)		$14		$172,609			$176,422		-		-		$176,422

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 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 December 31, 2023 and 2022. 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 Reconciliation of Net Income to Adjusted EBITDA per segment Year Ended December 31, 2023 and Year Ended December 31, 2022 Unaudited (Expressed in thousands of United States dollars)
		Year Ended									Year Ended
		December 31, 2023									December 31, 2022
		Container Vessels		Dry Bulk Vessels		Other		Total			Container Vessels		Dry Bulk Vessels		Other		Total
Net income		$563,279		$(1,910)		$14,930		$576,299			$588,447		-		$(29,237)		$559,210
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)		$710,476		$(537)		$(2,937)		$707,002			$704,011		-		$147,149		$851,160

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 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 year ended December 31, 2023 and 2022. 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 Reconciliation of Net Income to Adjusted Net Income per segment Three Months Ended December 31, 2023 and Three Months Ended December 31, 2022 Unaudited (Expressed in thousands of United States dollars)
		Three Months Ended									Three Months Ended
		December 31, 2023									December 31, 2022
		Container Vessels		Dry Bulk Vessels		Other		Total			Container Vessels		Dry Bulk Vessels		Other		Total
Net income		$130,996		$(1,851)		$20,776		$149,921			$152,721		-		-		$152,721
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)		$137,582		$(1,631)		$14		$135,965			$141,651		-		-		$141,651
Adjusted Earnings per Share, diluted								$6.99					-		-		$6.99
Diluted weighted average number of shares (in thousands of shares)								19,461									20,268

DANAOS CORPORATION Reconciliation of Net Income to Adjusted Net Income per segment Year Ended December 31, 2023 and Year Ended December 31, 2022 Unaudited (Expressed in thousands of United States dollars)
		Year Ended									Year Ended
		December 31, 2023									December 31, 2022
		Container Vessels		Dry Bulk Vessels		Other		Total			Container Vessels		Dry Bulk Vessels		Other		Total
Net income		$563,279		$(1,910)		$14,930		$576,299			$588,447		-		$(29,237)		$559,210
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)		$572,215		$(1,690)		$(2,937)		$567,588			$563,831		-		$147,149		$710,980
Adjusted Earnings per Share, diluted								$28.52									$34.68
Diluted weighted average number of shares (in thousands of shares)								19,904									20,501

¹ 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 and year ended December 31, 2023 and 2022. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240213662691/en/

The Danaos Stock at the time of publication of the news with a fall of -2,26 % to 69,10EUR on Lang & Schwarz stock exchange (13. Februar 2024, 22:33 Uhr).