Danaos Corporation Reports First Quarter Results for Period Ended March 31, 2025

, /PRNewswire/ -- Danaos Corporation ("Danaos") (NYSE: DAC), one of the world's largest independent owners of container vessels and drybulk vessels, today reported unaudited results for the three-month period ended March 31, 2025. Financial Summary Three Months Ended March 31, 2025 and Three Months Ended March 31, 2024 Unaudited (Expressed in thousands of United States dollars, except as otherwise stated) Three Months Ended Three Months Ended March 31, 2025 March 31, 2024 Financial & Operating Metrics Container Vessels Dry bulk Vessels Other Total Container Vessels Dry bulk Vessels Other Total Operating Revenues $236,190 $17,117 - $253,307 $233,411 $20,038 - $253,449 Voyage Expenses, excl. commissions $(307) $(8,370) - $(8,677) $(488) $(10,827) - $(11,315) Time Charter Equivalent Revenues (1) $235,883 $8,747 - $244,630 $232,923 $9,211 - $242,134 Net income/(loss) $119,045 $(6,542) $2,644 $115,147 $138,359 $337 $11,802 $150,498 Adjusted net income / (loss) (2) $119,803 $(6,542) $161 $113,422 $138,856 $337 $823 $140,016 Earnings per share, basic $6.14 $7.75 Earnings per share, diluted $6.13 $7.68 Adjusted earnings per share, diluted (2) $6.04 $7.15 Operating Days 6,451 832 - 6,019 596 - Time Charter Equivalent $/day (1) $36,565 $10,513 - $38,698 $15,455 - Ownership days 6,637 900 - 6,185 637 - Average number of vessels 73.7 10.0 - 68.0 7.0 - Fleet Utilization 97.2 % 92.4 % - 97.3 % 93.6 % - Adjusted EBITDA (2) $172,888 $(1,349) $134 $171,673 $174,188 $2,192 $823 $177,203 Consolidated Balance Sheet & Leverage Metrics As of March 31, 2025 As of December 31, 2024 Cash and cash equivalents $480,543 $453,384 Availability under Revolving Credit Facility $281,250 $292,500 Marketable securities (3) $63,333 $60,850 Total cash liquidity & marketable securities(4) $825,126 $806,734 Debt, gross of deferred finance costs $779,741 $744,546 Net Debt (5) $299,198 $291,162 LTM Adjusted EBITDA (6) $717,085 $722,615 Net Debt / LTM Adjusted EBITDA 0.42x 0.40x 1. Time charter equivalent revenues and time charter equivalent US$/day are non-GAAP measures. Refer to the reconciliation provided in the appendix. 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 adjusted earnings per share; and net income to adjusted EBITDA provided below. 3. Marketable securities refer to fair value of 4,070,214 shares of common stock of SBLK on March 31, 2025 and December 31, 2024. 4. Total cash liquidity & marketable securities includes: (i) cash and cash equivalents, (ii) availability under our Revolving Credit Facility and (iii) marketable securities. 5. Net Debt is defined as total debt gross of deferred finance costs less cash and cash equivalents. 6. Last twelve months Adjusted EBITDA. Refer to the reconciliation provided below. For management purposes, the Company is organized based on operating revenues generated from container 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 column 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 of accounting and investments in marketable securities. Highlights for the First Quarter Ended March 31, 2025: In February 2025, we entered into a syndicated loan facility agreement for an amount of up to $850 million, to finance all of our remaining newbuilding container vessels with deliveries from 2026 through 2028. In January 2025 we took delivery of the 6,014 TEU container vessel 'Phoebe' that is already contracted for a charter tenor of 7 years. Our remaining orderbook currently consists of a further 15 newbuilding containership vessels with an aggregate capacity of 128,220 TEU with expected deliveries of one vessel in 2025, three vessels in 2026, nine vessels in 2027 and two vessels in 2028. All the vessels in our orderbook are designed with the latest eco characteristics, will be methanol fuel ready, fitted with open loop scrubbers and Alternative Maritime Power (AMP) units and will be built in accordance with the latest requirements of the International Maritime Organization (IMO) in relation to Tier III emission standards and Energy Efficiency Design Index (EEDI) Phase III. We have secured multi-year charter arrangements for the remaining 15 newbuilding vessels orderbook, with an average charter duration of approximately 5.3 years weighted by aggregate contracted charter hire. Over the past three months, we added approximately $525 million to our contracted revenue backlog through a combination of new charters and charter extensions for 12 of our container vessels and container vessels newbuildings. As a result, total contracted cash operating revenues, on the basis of concluded charter contracts through the date of this release, currently stand at $3.7 billion, including newbuildings. The remaining average contracted charter duration for our containership fleet is 3.9 years, weighted by aggregate contracted charter hire. Contracted operating days charter coverage for our container vessel fleet is currently 99% for 2025 and 85% for 2026. This includes newbuildings based on their scheduled delivery dates. As of the date of this release, Danaos has repurchased a total of 2,937,158 shares of its common stock in the open market for $205.7 million under its recently upsized $300 million authorized share repurchase program that was originally introduced in June 2022 and was upsized in November 2023 and April 2025. Danaos has declared a dividend of $0.85 per share of common stock for the first quarter of 2025. The dividend is payable on June 5, 2025, to stockholders of record as of May 27, 2025. Danaos' CEO Dr. John Coustas commented: "As the year progresses, the level of global disruption shows no signs of abating. Armed conflicts continue, mostly recently involving India and Pakistan, and the uncertainty of tariffs has led to a dramatic decline in the U.S. Pacific Market. Thus far, the U.S. economy remains resilient. As long as American consumers continue to spend, we anticipate that trade flows will rebound, with depleted inventories eventually driving a surge in demand. The dry bulk market has recovered from its first quarter lows, although the rebound has been modest. In our view, a meaningful and sustained recovery will be challenging absent further growth initiatives in China. While the much-publicized Simandu project is expected to benefit the capesize market by increasing ton-miles, overall iron ore consumption is not projected to rise significantly. Our financial performance continues to be strong, although it has been impacted by a number of charter renewals at lower rates than those seen during the Covid pandemic. On the other hand, we continue to build our charter backlog, effectively insulating ourselves from near-term market weakness. Our charter coverage for 2025 and 2026 is largely secured. A noteworthy recent development is the proposed IMO regulation on greenhouse gas emissions. Unfortunately, the regulation falls short of the industry's more ambitious proposals and is unlikely to drive meaningful progress on decarbonisation of our industry. There is limited incentive to use expensive green fuels, and LNG has not been meaningfully prioritized. As a result, there is little clarity on the fuel of the future and at present conventional scrubber-fitted vessels remain the default option under what is, in essence, a "pay to pollute" framework. We are currently holding off on new vessel investments and are focusing on optimizing the performance of our existing fleet. Our significant growth backlog vessel orderbook includes 15 container vessels scheduled for delivery over the next three years, all backed by solid and profitable charter arrangements that will enhance both our fleet profile and our earnings potential. Despite the broader uncertainties, we remain committed to delivering superior returns to our shareholders through disciplined execution and long-term strategic focus." Three months ended March 31, 2025 compared to the three months ended March 31, 2024 During the three months ended March 31, 2025, Danaos had an average of 73.7 container vessels and 10.0 drybulk vessels compared to 68.0 container vessels and 7.0 drybulk vessels during the three months ended March 31, 2024. Our container vessels utilization for the three months ended March 31, 2025 was 97.2% compared to 97.3% in the three months ended March 31, 2024. Our drybulk vessels utilization for the three months ended March 31, 2025 was 92.4% compared to 93.6% in the three months ended March 31, 2024. Our adjusted net income amounted to $113.4 million, or $6.04 per diluted share, for the three months ended March 31, 2025 compared to $140.0 million, or $7.15 per diluted share, for the three months ended March 31, 2024. We have adjusted our net income in the three months ended March 31, 2025 for a $2.5 million change in fair value of investments and a $0.8 million of non-cash finance fees amortization. Adjusted net income of our container vessels segment amounted to $119.8 million for the three months ended March 31, 2025 compared to $138.9 million for the three months ended March 31, 2024. We adjusted net income of container vessels segment in the three months ended March 31, 2025 for a $0.8 million of non-cash finance fees amortization. Adjusted net income/loss of our drybulk vessels segment amounted to $6.5 million loss for the three months ended March 31, 2025 compared to $0.3 million income for the three months ended March 31, 2024. The $26.6 million decrease in adjusted net income for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 is primarily attributable to a $19.8 million increase in total operating expenses, a $6.0 million increase in net finance expenses, a $0.6 million decrease in dividends received, a $0.1 million increase in equity loss on investments, and a $0.1 million decrease in operating revenues. Please refer to the Adjusted Net Income reconciliation tables, which appear later in this earnings release. On a non-adjusted basis, our net income amounted to $115.1 million, or $6.13 earnings per diluted share, for the three months ended March 31, 2025 compared to net income of $150.5 million, or $7.68 earnings per diluted share, for the three months ended March 31, 2024. Our net income for the three months ended March 31, 2025 includes $2.5 million gain on marketable securities compared to $11.0 million gain on marketable securities in the three months ended March 31, 2024. On a non-adjusted basis, the net income of our container vessels segment amounted to $119.0 million for the three months ended March 31, 2025 compared to $138.4 million for the three months ended March 31, 2024. On a non-adjusted basis, the net income/loss of our drybulk vessels segment amounted to $6.5 million net loss for the three months ended March 31, 2025 compared to $0.3 million income for the three months ended March 31, 2024. Operating RevenuesOperating revenues decreased by $0.1 million, to $253.3 million in the three months ended March 31, 2025 from $253.4 million in the three months ended March 31, 2024. Operating revenues of our container vessels segment increased by 1.2%, or $2.8 million, to $236.2 million in the three months ended March 31, 2025, compared to $233.4 million in the three months ended March 31, 2024, analyzed as follows: $24.0 million increase in revenues as a result of newbuilding containership vessel additions; partially off-set by: $9.4 million decrease in revenues as a result of lower charter rates between the two periods; $6.2 million decrease in revenues as a result of lower fleet utilization between the two periods; $0.2 million decrease in revenues due to the disposal of one containership vessel; and $5.4 million decrease in revenues due to lower non-cash revenue recognition in accordance with US GAAP. Operating revenues of our drybulk vessels segment decreased by 14.5%, or $2.9 million, to $17.1 million in the three months ended March 31, 2025, compared to $20.0 million of revenues in the three months ended March 31, 2024, analyzed as follows: $9.0 million decrease in revenues as a result of lower charter rates and lower vessel utilization between the two periods; partially off-set by: $6.1 million increase in revenues as a result of dry bulk vessel acquisitions. Vessel Operating ExpensesVessel operating expenses increased by $8.6 million to $51.7 million in the three months ended March 31, 2025 from $43.1 million in the three months ended March 31, 2024, primarily as a result of the increase in the average number of vessels in our fleet due to container vessel newbuilding deliveries and drybulk vessels acquisitions, combined with an increase in the average daily operating cost of our vessels to $7,028 per vessel per day for the three months ended March 31, 2025 compared to $6,493 per vessel per day for the three months ended March 31, 2024, mainly due to increased repairs & maintenance expenses between the two periods. Management believes that our daily operating costs remain among the most competitive in the industry. Depreciation & AmortizationDepreciation & Amortization includes Depreciation and Amortization of Deferred Dry-docking and Special Survey Costs. DepreciationDepreciation expense increased by $6.1 million, to $40.0 million in the three months ended March 31, 2025 from $33.9 million in the three months ended March 31, 2024 due to the increase in the average number of vessels in our fleet. Amortization of Deferred Dry-docking and Special Survey CostsAmortization of deferred dry-docking and special survey costs increased by $5.5 million to $11.0 million in the three months ended March 31, 2025 from $5.5 million in the three months ended March 31, 2024, reflecting a larger number of vessels drydocked for which vessels drydocking amortization cost was recognized during the three months ended March 31, 2025 compared to the three months ended March 31, 2024. General and Administrative ExpensesGeneral and administrative expenses increased by $2.0 million, to $12.2 million in the three months ended March 31, 2025 from $10.2 million in the three months ended March 31, 2024. The increase was mainly attributable to $0.9 million higher management fees due to the increase in the average number of vessels in our fleet and an $1 million increase in corporate general and administrative expenses. Other Operating ExpensesOther Operating Expenses include Voyage Expenses. Voyage ExpensesVoyage expenses decreased by $2.2 million to $18.1 million in the three months ended March 31, 2025 from $20.3 million in the three months ended March 31, 2024, mainly driven by a $2.7 million decrease in voyage expenses of our dry bulk vessels, attributed to the different mix of time charter and voyage charter contracts under which our dry bulk vessels were deployed between the two periods. Voyage expenses of container vessels segment increased by $0.5 million to $8.8 million in the three months ended March 31, 2025 from $8.3 million in the three months ended March 31, 2024 mainly due to increased commissions. Voyage expenses of drybulk vessels segment decreased by $2.7 million to $9.3 million in the three months ended March 31, 2025 compared to $12.0 million voyage expenses in the three months ended March 31, 2024. For the three months ended March 31, 2025, voyage expenses of drybulk vessels comprised of $1.0 million in commissions and $8.3 million in other voyage expenses, compared to $1.2 million in commissions and $10.8 million in other voyage expenses for the three months ended March 31, 2024. Interest Expense and Interest IncomeInterest expense increased by $6.9 million, to $10.0 million in the three months ended March 31, 2025 from $3.1 million in the three months ended March 31, 2024. The increase in interest expense is a result of: $5.2 million increase in interest expense due to an increase in our average indebtedness by $363.9 million between the two periods. Average indebtedness was $777.6 million in the three months ended March 31, 2025, compared to average indebtedness of $413.7 million in the three months ended March 31, 2024. This increase was partially offset by a decrease in our debt service cost by approximately 1% as a result of lower SOFR rates between the two periods; $1.4 million increase in interest expense due to a decrease in the amount of interest expense capitalized on our vessels under construction in the three months ended March 31, 2025 when compared to capitalized interest in the three months ended March 31, 2024; and $0.3 million increase in the amortization of deferred finance costs between the two periods. As of March 31, 2025, our outstanding debt, gross of deferred finance costs, was $779.7 million, which included $262.8 million principal amount of our Senior Notes. These balances compare to debt of $458.6 million, which included $262.8 million principal amount of our Senior Notes, gross of deferred finance costs, as of March 31, 2024. The increase in our outstanding debt is due to loans drawn down to partially finance our container vessel newbuilding deliveries. Interest income increased by $0.7 million, to $3.6 million in the three months ended March 31, 2025 compared to $2.9 million in the three months ended March 31, 2024, driven by higher average cash balances between the two periods. Gain on investmentsThe $2.8 million gain on investments in the three months ended March 31, 2025 consisted of the change in fair value of our shareholding interest in Star Bulk Carriers Corp. ("SBLK") of $2.5 million and dividend income on these shares of $0.3 million. This compares to an $11.9 million gain on investments in the three months ended March 31, 2024, representing an $11.0 million change in fair value on our Eagle Bulk Shipping ("EGLE") shareholding interest and dividend income on these shares of $0.9 million. Equity loss on investmentsEquity loss on investments amounting to $0.2 million and $0.1 million in the three months March 31, 2025 and March 31, 2024, respectively, relates to our share of expenses of Carbon Termination Technologies Corporation ("CTTC"), currently engaged in the research and development of decarbonization technologies for the shipping industry. Other finance expensesOther finance expenses increased by $0.1 million to $1.0 million in the three months ended March 31, 2025 compared to $0.9 million in the three months ended March 31, 2024. Loss on derivativesAmortization of deferred realized losses on interest rate swaps remained stable at $0.9 million in each of the three months ended March 31, 2025 and March 31, 2024. Other income/(expenses), netOther income, net amounted to $0.6 million in the three months ended March 31, 2025 compared to $0.2 million in the three months ended March 31, 2024. Adjusted EBITDAAdjusted EBITDA decreased by 3.1%, or $5.5 million, to $171.7 million in the three months ended March 31, 2025 from $177.2 million in the three months ended March 31, 2024. The decrease was attributed to (i) $7.9 million increase in total operating expenses, ii) $0.3 million increase in net financing expenses, iii) $0.6 million decrease in dividends received and iv) $0.1 million increase in equity loss on investments offset by v) $3.4 million increase in operating revenues. Adjusted EBITDA for the three months ended March 31, 2025 is adjusted for a $2.5 million change in fair value of investments and stock based compensation of $0.1 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 0.7%, or $1.3 million, to $172.9 million in the three months ended March 31, 2025 from $174.2 million in the three months ended March 31, 2024. Adjusted EBITDA of drybulk vessels segment decreased by $3.5 million to ($1.3) million in the three months ended March 31, 2025 from $2.2 million in the three months ended March 31, 2024. Dividend PaymentDanaos has declared a dividend of $0.85 per share of common stock for the first quarter of 2025, which is payable on June 5, 2025, to stockholders of record as of May 27, 2025. Recent DevelopmentsSubsequent to March 31, 2025, we repurchased 264,605 shares of our common stock in the open market for $19.4 million. Subsequent to March 31, 2025, we purchased in the open market an additional 2,060,399 shares of common stock of Star Bulk Carriers Corp. ("SBLK'') for $27.8 million and the Company today owns 6,130,613 shares. Conference Call and WebcastOn Wednesday, May 14, 2025 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 279 948 9 (UK Toll Free Dial In) or +44 (0) 2075 441 375 (Standard International Dial In). Please indicate to the operator that you wish to join the Danaos Corporation earnings call. A telephonic replay of the conference call will be available until May 21, 2025 by dialing 1 877 344 7529 (US Toll Free Dial In) or 1-412-317-0088 (Standard International Dial In) and using 4079215# as the access code. Audio WebcastThere 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 PresentationA slide presentation regarding the Company and the container and drybulk industry will also be available on the Danaos website (www.danaos.com). About Danaos CorporationDanaos Corporation is one of the largest independent owners of modern, large-size container vessels. Our current fleet of 74 container vessels aggregating 471,477 TEUs and 15 under construction container vessels aggregating 128,220 TEUs ranks Danaos among the largest container vessels charter owners in the world based on total TEU capacity. Danaos has also recently invested in the drybulk sector with the acquisition of 10 capesize drybulk vessels aggregating 1,760,861 DWT. Our container vessels 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 StatementsMatters 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, geopolitical conditions, including any trade disruptions resulting from tariffs imposed by the United States or other countries, 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, performance of shipyards constructing our contracted newbuilding vessels, 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) Three months ended Three months ended March 31, March 31, 2025 2024 Ownership Days 6,637 6,185 Less Off-hire Days: Scheduled Off-hire Days (167) (67) Other Off-hire Days (19) (99) Operating Days 6,451 6,019 Vessel Utilization 97.2 % 97.3 % Operating Revenues (in '000s of US$) $236,190 $233,411 Less: Voyage Expenses excluding commissions (in '000s of US$) (307) (488) Time Charter Equivalent Revenues (in '000s of US$) 235,883 232,923 Time Charter Equivalent US$/per day $36,565 $38,698 Drybulk vessels fleet utilization Vessel Utilization (No. of Days) Three months ended Three months ended March 31, March 31, 2025 2024 Ownership Days 900 637 Less Off-hire Days: Scheduled Off-hire Days (56) (31) Other Off-hire Days (12) (10) Operating Days 832 596 Vessel Utilization 92.4 % 93.6 % Operating Revenues (in '000s of US$) $17,117 $20,038 Less: Voyage Expenses excluding commissions (in '000s of US$) (8,370) (10,827) Time Charter Equivalent Revenues (in '000s of US$) 8,747 9,211 Time Charter Equivalent US$/per day $10,513 $15,455 1) We define Operating Days as the total number of Ownership Days net of Scheduled off-hire days (days associated with scheduled repairs, drydockings or special or intermediate surveys or days) and net of off-hire days associated with unscheduled repairs or days waiting to find employment but including days our vessels were sailing for repositioning. The shipping industry uses Operating Days to measure the number of days in a period during which vessels actually generate revenues or are sailing for repositioning purposes. Our definition of Operating Days may not be comparable to that used by other companies in the shipping industry. 2) Time charter equivalent US$/per day ("TCE rate") represents the average daily TCE rate of our container vessels segment and drybulk vessels segment calculated dividing time charter equivalent revenues of each segment by operating days of each segment. TCE rate is a standard shipping industry performance measure used primarily to compare period to period changes in a shipping company's performance despite changes in the mix of charter types i.e., voyage charters, time charters, bareboat charters under which its vessels may be employed between the periods. Our method of computing TCE rate may not necessarily be comparable to TCE rates of other companies due to differences in methods of calculation. We include TCE rate, a non- GAAP measure, as it provides additional meaningful information in conjunction with operating revenues, the most directly comparable GAAP measure, and it assists our management in making decisions regarding the deployment and use of our operating vessels and assists investors and our management in evaluating our financial performance. Fleet List The following table describes in detail our container vessels deployment profile as of May 12, 2025: Vessel Name Vessel Size Year Built Expiration of Charter(2) (TEU) (1) Ambition (ex Hyundai Ambition) 13,100 2012 April 2027 Speed (ex Hyundai Speed) 13,100 2012 March 2027 Kota Plumbago (ex Hyundai Smart) 13,100 2012 July 2027 Kota Primrose (ex Hyundai Respect) 13,100 2012 April 2027 Kota Peony (ex Hyundai Honour) 13,100 2012 March 2027 Express Rome 10,100 2011 May 2027 Express Berlin 10,100 2011 December 2029 Express Athens 10,100 2011 May 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 2028 Kota Manzanillo 8,533 2005 December 2028 Belita 8,533 2006 June 2028 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 June 2029 Catherine C(3) 8,010 2024 June 2029 Greenland(3) 8,010 2024 August 2029 Greenville(4) 8,010 2024 October 2029 Greenfield(5) 8,010 2024 November 2029 Interasia Accelerate(3) 7,165 2024 April 2027 Interasia Amplify(4) 7,165 2024 September 2027 CMA CGM Moliere 6,500 2009 March 2027 CMA CGM Musset 6,500 2010 July 2027 CMA CGM Nerval 6,500 2010 November 2025 CMA CGM Rabelais 6,500 2010 January 2026 Racine 6,500 2010 June 2029 YM Mandate 6,500 2010 January 2028 YM Maturity 6,500 2010 April 2028 Savannah (ex Zim Savannah) 6,402 2002 June 2027 Dimitra C 6,402 2002 April 2027 Phoebe(6) 6,014 2025 October 2031 Suez Canal 5,610 2002 April 2026 Kota Lima 5,544 2002 September 2025 Wide Alpha 5,466 2014 January 2030 Stephanie C 5,466 2014 September 2028 Euphrates (ex Maersk Euphrates) 5,466 2014 September 2028 Wide Hotel 5,466 2015 March 2030 Wide India 5,466 2015 October 2028 Wide Juliet 5,466 2015 September 2025 Seattle C 4,253 2007 October 2026 Vancouver 4,253 2007 November 2026 Derby D 4,253 2004 January 2027 Tongala 4,253 2004 November 2026 Rio Grande 4,253 2008 November 2026 Merve A 4,253 2008 August 2027 Kingston 4,253 2008 June 2027 Monaco (ex ZIM Monaco) 4,253 2009 December 2026 Dalian 4,253 2009 March 2026 ZIM Luanda 4,253 2009 August 2028 Dimitris C 3,430 2001 September 2027 Express Black Sea 3,400 2011 January 2027 Express Spain 3,400 2011 January 2027 Express Argentina 3,400 2010 December 2026 Express Brazil 3,400 2010 April 2027 Express France 3,400 2010 July 2027 Singapore 3,314 2004 March 2027 Colombo 3,314 2004 January 2027 Zebra 2,602 2001 November 2025 Artotina 2,524 2001 January 2026 Advance 2,200 1997 June 2026 Future 2,200 1997 May 2026 Sprinter 2,200 1997 May 2026 Bridge 2,200 1998 January 2028 Progress C 2,200 1998 April 2026 Phoenix D 2,200 1997 March 2026 Highway 2,200 1998 January 2028 (1) Twenty-feet equivalent unit, the international standard measure for containers and container vessels capacity. (2) Earliest date charters could expire. Some charters include options for the charterer to extend their terms. (3) The newbuilding vessels were delivered in the second quarter of 2024. (4) The newbuilding vessels were delivered in the third quarter of 2024. (5) The newbuilding vessel was delivered in the fourth quarter of 2024. (6) The newbuilding vessel was delivered in January 2025. Container vessels under construction as of May 12, 2025: Hull Number Vessel Size (TEU) Expected Delivery Year Minimum Charter Duration Hull No. CV5900-08 6,014 2025 6.8 Years Hull No. YZJ2023-1556 8,258 2026 5 Years Hull No. YZJ2023-1557 8,258 2026 5 Years Hull No. YZJ2024-1612 8,258 2026 5 Years Hull No. YZJ2024-1613 8,258 2027 5 Years Hull No. YZJ2024-1625 8,258 2027 5 Years Hull No. YZJ2024-1626 8,258 2027 5 Years Hull No. YZJ2024-1668 8,258 2027 5 Years Hull No. C9200-7 9,200 2027 4.8 Years Hull No. C9200-8 9,200 2027 4.8 Years Hull No. C9200-9 9,200 2027 4.8 Years Hull No. C9200-10 9,200 2028 4.8 Years Hull No. C9200-11 9,200 2028 4.8 Years Hull No. H2596 9,200 2027 6 Years Hull No. H2597 9,200 2027 6 Years The following table describes the details of our Capesize drybulk vessels as of May 12, 2025: Vessel Name Capacity (DWT) (1) 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 Gouverneur (ex Xin Hang) (2) 178,043 2010 Valentine (ex Star Audrey) (2) 175,125 2011 Danaos (ex Guo May) (3) 176,536 2011 (1) DWT, dead weight tons, the international standard measure for drybulk vessels capacity. (2) The vessels were delivered in the second quarter of 2024. (3) The vessel was delivered in July 2024. 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 March 31, March 31, 2025 2024 OPERATING REVENUES $253,307 $253,449 OPERATING EXPENSES Vessel operating expenses (51,702) (43,114) Depreciation & amortization (50,998) (39,315) General & administrative (12,222) (10,244) Other operating expenses (18,135) (20,342) Income From Operations 120,250 140,434 OTHER INCOME/(EXPENSES) Interest income 3,605 2,936 Interest expense (10,003) (3,124) Gain on investments 2,849 11,911 Other finance expenses (987) (882) Equity loss on investments (232) (109) Other income/(expenses), net 558 235 Realized loss on derivatives (893) (903) Total Other Income/(Expenses), net (5,103) 10,064 Net Income 115,147 150,498 EARNINGS PER SHARE Basic earnings per share $6.14 $7.75 Diluted earnings per share $6.13 $7.68 Basic weighted average number of common shares (in thousands of shares) 18,750 19,412 Diluted weighted average number of common shares (in thousands of shares) 18,781 19,584 Non-GAAP Measures1 Reconciliation of Net Income to Adjusted Net Income – Unaudited Three months ended Three months ended March 31, March 31, 2025 2024 Net Income $115,147 $150,498 Change in fair value of investments (2,483) (10,979) Amortization of financing fees 758 497 Adjusted Net Income $113,422 $140,016 Adjusted Earnings Per Share, diluted $6.04 $7.15 Diluted weighted average number of shares (in thousands of shares) 18,781 19,584 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 ended March 31, 2025 and 2024. The 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. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries. DANAOS CORPORATION Condensed Consolidated Balance Sheets - Unaudited (Expressed in thousands of United States dollars) As of As of March 31, December 31, 2025 2024 ASSETS CURRENT ASSETS Cash, cash equivalents and restricted cash $480,543 $453,384 Accounts receivable, net 25,046 25,578 Other current assets 200,240 192,005 705,829 670,967 NON-CURRENT ASSETS Fixed assets, net 3,319,777 3,290,309 Advances for vessels acquisition and vessels under construction 285,485 265,838 Deferred charges, net 63,578 58,759 Other non-current assets 64,186 57,781 3,733,026 3,672,687 TOTAL ASSETS $4,438,855 $4,343,654 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Long-term debt, current portion $37,660 $35,220 Accounts payable, accrued liabilities & other current liabilities 124,892 133,734 162,552 168,954 LONG-TERM LIABILITIES Long-term debt, net 732,194 699,563 Other long-term liabilities 50,380 50,337 782,574 749,900 STOCKHOLDERS' EQUITY Common stock 186 190 Additional paid-in capital 619,361 650,864 Accumulated other comprehensive loss (69,247) (70,430) Retained earnings 2,943,429 2,844,176 3,493,729 3,424,800 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $4,438,855 $4,343,654 DANAOS CORPORATION Condensed Consolidated Statements of Cash Flows - Unaudited (Expressed in thousands of United States dollars) Three months ended Three months ended March 31, March 31, 2025 2024 Operating Activities: Net income $115,147 $150,498 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 40,028 33,863 Amortization of deferred drydocking & special survey costs and finance costs 11,728 5,949 Amortization of assumed time charters - (3,498) Prior service cost and periodic cost 1,085 257 Gain on investments (2,483) (10,979) Payments for drydocking/special survey (15,789) (4,169) Amortization of deferred realized losses on cash flow interest rate swaps 893 903 Equity loss on investments 232 109 Stock based compensation 1,705 1,576 Accounts receivable 172 (3,452) Other assets, current and non-current (6,384) 11,887 Accounts payable and accrued liabilities (2,555) (6,228) Other liabilities, current and long-term (9,919) (23,424) Net Cash provided by Operating Activities 133,860 153,292 Investing Activities: Vessel additions and advances for vessels under construction (85,690) (124,127) Net proceeds and insurance proceeds from disposal of vessel 1,681 716 Net Cash used in Investing Activities (84,009) (123,411) Financing Activities: Proceeds from long-term debt 44,000 55,000 Debt repayment (8,805) (6,875) Dividends paid (15,890) (15,535) Repurchase of common stock (33,774) (4,129) Finance costs (8,223) (5,825) Net Cash (used in) / provided by Financing Activities (22,692) 22,636 Net increase in cash and cash equivalents 27,159 52,517 Cash and cash equivalents, beginning of period 453,384 271,809 Cash and cash equivalents, end of period $480,543 $324,326 DANAOS CORPORATION Reconciliation of Net Income to Adjusted EBITDA - Unaudited (Expressed in thousands of United States dollars) Three months ended Three months ended Last twelve months ended Last twelve months ended March 31, March 31, March 31, March 31, 2025 2024 2025 2024 Net income $115,147 $150,498 $469,722 $580,596 Depreciation 40,028 33,863 154,509 131,621 Amortization of deferred drydocking & special survey costs 10,970 5,452 34,679 20,280 Amortization of assumed time charters - (3,498) (1,036) (18,184) Amortization of deferred finance costs and commitment fees 1,336 1,273 4,968 4,958 Amortization of deferred realized losses on interest rate swaps 893 903 3,622 3,632 Interest income (3,605) (2,936) (13,559) (12,346) Interest expense excluding amortization of finance costs 9,245 2,627 30,477 14,860 Change in fair value of investments (2,483) (10,979) 33,675 (28,846) Loss on debt extinguishment - - - 2,254 Stock based compensation 142 - 8,360 6,340 Net gain on disposal/sale of vessels - - (8,332) - Adjusted EBITDA(1) $171,673 $177,203 $717,085 $705,165 1) Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs and commitment fees, amortization of deferred realized losses on interest rate swaps, adjusted for the change in fair value of investments, stock based compensation, loss on debt extinguishment and net gain on disposal/sale of vessels. However, Adjusted EBITDA is not a recognized measurement under U.S. generally accepted accounting principles, or "GAAP." We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that EBITDA and Adjusted EBITDA assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core 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. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries. 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 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 Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months and year ended March 31, 2025 and March 31, 2024. 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 March 31, 2025 and Three Months Ended March 31, 2024 Unaudited (Expressed in thousands of United States dollars) Three Months Ended Three Months Ended March 31, 2025 March 31, 2024 Container Vessels Drybulk Vessels Other Total Container Vessels Drybulk Vessels Other Total Net income/(loss) $119,045 $(6,542) $2,644 $115,147 $138,359 $337 $11,802 $150,498 Depreciation 36,764 3,264 - 40,028 32,008 1,855 - 33,863 Amortization of deferred drydocking & special survey costs 9,051 1,919 - 10,970 5,452 - - 5,452 Amortization of assumed time charters - - - - (3,498) - - (3,498) Amortization of deferred finance costs and commitment fees 1,336 - - 1,336 1,273 - - 1,273 Amortization of deferred realized losses on interest rate swaps 893 - - 893 903 - - 903 Interest income (3,578) - (27) (3,605) (2,936) - - (2,936) Interest expense excluding amortization of finance costs 9,245 - - 9,245 2,627 - - 2,627 Change in fair value of investments - - (2,483) (2,483) - - (10,979) (10,979) Stock based compensation 132 10 - 142 - - - - Adjusted EBITDA(1) $172,888 $(1,349) $134 $171,673 $174,188 $2,192 $823 $177,203 1) Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs, amortization of assumed time charters, amortization of deferred finance costs and commitment fees, amortization of deferred realized losses on interest rate swaps and adjusted for the change in fair value of investments 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 EBITDA and Adjusted EBITDA assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core 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. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries. Note: Items to consider for comparability include gains and charges. Gains positively impacting net income are reflected as deductions to net income. Charges negatively impacting net income are reflected as increases to net income. The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial information additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Tables above for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended March 31, 2025 and 2024. 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 March 31, 2025 and Three Months Ended March 31, 2024 Unaudited (Expressed in thousands of United States dollars) Three Months Ended Three Months Ended March 31, 2025 March 31, 2024 Container Vessels Drybulk Vessels Other Total Container Vessels Drybulk Vessels Other Total Net income/(loss) $119,045 $(6,542) $2,644 $115,147 $138,359 $337 $11,802 $150,498 Change in fair value of investments - - (2,483) (2,483) - - (10,979) (10,979) Amortization of financing fees 758 - - 758 497 - - 497 Adjusted Net income/(loss)(1) $119,803 $(6,542) $161 $113,422 $138,856 $337 $823 $140,016 Adjusted Earnings per Share, diluted $6.04 - - $7.15 Diluted weighted average number of shares (in thousands of shares) 18,781 19,584 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 ended March 31, 2025 and 2024. 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. The non-GAAP financial measures as presented above may not be comparable to similarly titled measures of other companies in the shipping or other industries. SOURCE Danaos Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Danaos Corporation Reports First Quarter Results for Period Ended March 31, 2025

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