Danaos corporation reports first quarter results for the period ended march 31, 2023
Athens, greece--(business wire)--danaos corporation (“danaos”) (nyse: dac), one of the world’s largest independent owners of containerships, today reported unaudited results for the first quarter ended march 31, 2023. highlights for the first quarter ended march 31, 2023: adjusted net income1 of $145.3 million, or $7.14 per share, for the three months ended march 31, 2023 compared to $235.3 million, or $11.36 per share, for the three months ended march 31, 2022, a decrease of 38.2%. our adjusted net income for the three months ended march 31, 2022 included a non-recurring $110.0 million dividend from zim that accounted for $5.31 per share. net income of $146.2 million, or $7.18 per share, for the three months ended march 31, 2023 compared to $331.5 million, or $16.00 per share, for the three months ended march 31, 2022. our net income for the three months ended march 31, 2022 included a non-recurring $209.5 million total gain on zim investment that accounted for $10.11 per share. cash and cash equivalents were $359.6 million as of march 31, 2023. total liquidity was $730.8 million as of march 31, 2023, including undrawn available commitments under our revolving credit facility. as of the date of this release, danaos has repurchased in total 683,889 shares of its common stock in the open market for $40.5 million, under its share repurchase program of up to $100 million announced in june 2022. during the three months ended march 31, 2023, we invested $4.3 million for a 49% shareholding interest in a newly established company, carbon termination technologies corporation (“cttc”), currently engaged in the research and development of decarbonization technologies for the shipping industry. operating revenues of $243.6 million for the three months ended march 31, 2023 compared to $229.9 million for the three months ended march 31, 2022, an increase of 6.0%. during the last three months, we concluded new charter agreements for $380.7 million of contracted revenues that included $262.0 million related to 3-year charters for six under construction containerships expected to be delivered during the second half of 2024. on may 12, 2023, we made an early prepayment of our outstanding leaseback obligations related to two of our vessels, which amounted to $66.3 million as of march 31, 2023. as a result of this early prepayment, we currently have no lease obligations on the balance sheet. adjusted ebitda1 of $179.0 million for the three months ended march 31, 2023 compared to $269.5 million for the three months ended march 31, 2022, a decrease of 33.6%. our adjusted ebitda for the three months ended march 31, 2022 included a non-recurring $110.0 million dividend from zim. total contracted cash operating revenues, on the basis of concluded charter contracts through the date of this release, were $2.3 billion as of march 31, 2023. the remaining average contracted charter duration was 3.2 years, weighted by aggregate contracted charter hire. contracted operating days charter coverage is currently 97.3% for 2023, and 73.2% for 2024. as of march 31, 2023, net debt2 was $137.9 million, and net debt / ltm adjusted ebitda was 0.18x, while 44 of our vessels are debt-free currently. danaos has declared a dividend of $0.75 per share of common stock for the first quarter of 2023, which is payable on june 7, 2023, to stockholders of record as of may 26, 2023. three months ended march 31, 2023 financial summary - unaudited (expressed in thousands of united states dollars, except per share amounts) three months ended three months ended march 31, march 31, 2023 2022 operating revenues $ 243,574 $ 229,901 net income $ 146,201 $ 331,465 adjusted net income1 $ 145,255 $ 235,297 earnings per share, diluted $ 7.18 $ 16.00 adjusted earnings per share, diluted1 $ 7.14 $ 11.36 diluted weighted average number of shares (in thousands) 20,349 20,717 adjusted ebitda1 $ 179,040 $ 269,484 1 adjusted net income, adjusted earnings per share and adjusted ebitda are non-gaap measures. refer to the reconciliation of net income to adjusted net income and net income to adjusted ebitda provided below. 2 net debt is defined as total debt gross of deferred finance costs less cash and cash equivalents. danaos’ ceo dr. john coustas commented: “danaos reports yet another solid quarter, despite the continuing geopolitical uncertainty and the turmoil in the financial markets. box rates strengthened after the chinese new year due to the blank sailings and discipline on the part of liner companies. in addition, the charter market improved due to the very limited supply of charter-free vessels as well as the impact of speed reduction as charterers seek to comply with cii regulations. danaos has continued its successful chartering and asset management strategy, driving steady and predictable performance and laying the groundwork for continued growth while also pursuing environmentally sound policies. our chartering strategy delivered another strong quarter, and we have operating days charter coverage of 97% for 2023 and 73% for 2024. our strong chartering capabilities and our business strategy continue to drive solid performance. in the first quarter, we successfully secured more than $380 million of contracted revenue through multi-year charters, including $262 million for all six new buildings that will be delivered to us in 2024. in addition, we have placed an order for two additional 6,000 teu vessels of the latest eco design to be delivered in the fourth quarter of 2024 and the second quarter of 2025. our modernization efforts that are key to the future of the company, highlight our commitment to maintaining a high quality fleet while supporting the ongoing decarbonization of the industry. we are very well positioned to navigate the operating environment with the new regulatory requirements that are becoming very demanding and complex. our very strong operating platform provides us significant competitive advantage in complying with upcoming regulations, while strengthening our value proposition and ties with our customers as the industry focuses on achieving environmental goals and closer cooperation between owners and charterers becomes increasingly important. we appreciate the ongoing support of our customers and employees and will continue to work diligently for the benefit of our shareholders.” three months ended march 31, 2023 compared to the three months ended march 31, 2022 during the three months ended march 31, 2023, danaos had an average of 68.3 containerships compared to 71.0 containerships during the three months ended march 31, 2022. our fleet utilization for the three months ended march 31, 2023 was 96.8% compared to 97.4% for the three months ended march 31, 2022. our adjusted net income amounted to $145.3 million, or $7.14 per share, for the three months ended march 31, 2023 compared to $235.3 million, or $11.36 per share, for the three months ended march 31, 2022. we have adjusted our net income in the three months ended march 31, 2023 for a $1.6 million gain on sale of vessel and a $0.7 million non-cash finance fees amortization. please refer to the adjusted net income reconciliation table, which appears later in this earnings release. the $90.0 million decrease in adjusted net income for the three months ended march 31, 2023 compared to the three months ended march 31, 2022 is primarily attributable to a $110.0 million dividend from zim (net of withholding taxes) recognized in the three months ended march 31, 2022. we also incurred a $2.6 million equity loss on investments in the three months ended march 31, 2023 and a $1.2 million increase in total operating expenses, which were partially offset by a $13.7 million increase in operating revenues and a $10.1 million decrease in net finance expenses. on a non-adjusted basis, net income amounted to $146.2 million, or $7.18 earnings per diluted share, for the three months ended march 31, 2023 compared to net income of $331.5 million, or $16.00 earnings per diluted share, for the three months ended march 31, 2022. our net income for the three months ended march 31, 2022 included a total gain on our investment in zim of $209.5 million, net of withholding taxes on dividend. operating revenues operating revenues increased by 6.0%, or $13.7 million, to $243.6 million in the three months ended march 31, 2023 from $229.9 million in the three months ended march 31, 2022. operating revenues for the three months ended march 31, 2023 reflected: a $30.4 million increase in revenues in the three months ended march 31, 2023 compared to the three months ended march 31, 2022 mainly as a result of higher charter rates; a $3.3 million decrease in revenues in the three months ended march 31, 2023 compared to the three months ended march 31, 2022 due to vessel disposals; a $3.3 million decrease in revenues in the three months ended march 31, 2023 compared to the three months ended march 31, 2022 due to lower non-cash revenue recognition in accordance with us gaap; and a $10.1 million decrease in revenues in the three months ended march 31, 2023 compared to the three months ended march 31, 2022 due to decreased amortization of assumed time charters. vessel operating expenses vessel operating expenses increased by $1.4 million to $40.6 million in the three months ended march 31, 2023 from $39.2 million in the three months ended march 31, 2022, primarily as a result of an increase in the average daily operating cost for vessels on time charter to $6,807 per vessel per day for the three months ended march 31, 2023 compared to $6,307 per vessel per day for the three months ended march 31, 2022, which was partially offset by a decrease in the average number of vessels in our fleet. the average daily operating cost increased mainly due to increased repair and maintenance and crew 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 5.4%, or $1.8 million, to $31.5 million in the three months ended march 31, 2023 from $33.3 million in the three months ended march 31, 2022 due to our recent sale of three vessels. amortization of deferred dry-docking and special survey costs amortization of deferred dry-docking and special survey costs increased by $1.1 million to $3.8 million in the three months ended march 31, 2023 from $2.7 million in the three months ended march 31, 2022. general and administrative expenses general and administrative expenses decreased by $0.6 million to $6.8 million in the three months ended march 31, 2023, from $7.4 million in the three months ended march 31, 2022. the decrease was primarily attributable to decreased management fees due to the recent sale of three vessels and decreased stock-based compensation expenses. other operating expenses other operating expenses include voyage expenses. voyage expenses voyage expenses increased by $0.7 million to $7.9 million in the three months ended march 31, 2023 from $7.2 million in the three months ended march 31, 2022 primarily as a result of the increase in commissions due to the increase in revenue per vessel, which was partially offset by a decrease in the average number of vessels in our fleet. 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. interest expense and interest income interest expense decreased by 60.8%, or $10.4 million, to $6.7 million in the three months ended march 31, 2023 from $17.1 million in the three months ended march 31, 2022. the decrease in interest expense is a result of: a $5.7 million decrease in interest expense due to a decrease in our average indebtedness by $849.0 million between the two periods. average indebtedness was $507.7 million in the three months ended march 31, 2023, compared to average indebtedness of $1,356.7 million in the three months ended march 31, 2022. this decrease was partially offset by an increase in our debt service cost by approximately 3.0%; a $3.4 million decrease in interest expense due to capitalized interest on our vessels under construction in the three months ended march 31, 2023 compared to none in the three months ended march 31, 2022; a $2.7 million decrease in the amortization of deferred finance costs and debt discount related to our refinancing; and a $1.4 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 march 31, 2023, outstanding debt, gross of deferred finance costs, was $431.1 million, which included $262.8 million aggregate principal amount of our senior notes, and our leaseback obligations of $66.3 million. these balances compare to debt of $1,118.6 million and a leaseback obligations of $210.2 million as of march 31, 2022. interest income increased by $2.7 million to $2.7 million in the three months ended march 31, 2023 compared to nil in the three months ended march 31, 2022 mainly as a result of increased interest income earned on time deposits in the three months ended march 31, 2023. gain on investments the gain on investments of $221.7 million in the three months ended march 31, 2022 consisted of the change in fair value of our shareholding interest in zim of $99.5 million and dividends recognized on zim ordinary shares of $122.2 million. in april and september 2022, we sold all of our remaining ordinary shares of zim for net proceeds of $246.6 million. other finance expenses, net other finance expenses, net increased by $0.4 million to $1.0 million in the three months ended march 31, 2023 compared to $0.6 million in the three months ended march 31, 2022 mainly due to an increase in commitment fees for our revolving credit facility. equity loss on investments equity loss on investments amounting to $2.6 million in the three months ended march 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. 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 march 31, 2023 and march 31, 2022. other income/(expenses), net other income, net was $0.2 million in the three months ended march 31, 2023 compared to other income, net of $0.5 million in the three months ended march 31, 2022. income taxes income taxes of $12.2 million in the three months ended march 31, 2022, related to the taxes withheld on dividend income earned on zim ordinary shares and compared to no income tax in the three months ended march 31, 2023. adjusted ebitda adjusted ebitda decreased by 33.6%, or $90.5 million, to $179.0 million in the three months ended march 31, 2023 from $269.5 million in the three months ended march 31, 2022. as outlined above, the decrease is primarily attributable to a recognition of a $110.0 million dividend from zim in the three months ended march 31, 2022. we also incurred a $1.7 million increase in total operating expenses and a $2.6 million equity loss on investments in the three months ended march 31, 2023, which were partially offset by a $23.8 million increase in operating revenues. adjusted ebitda for the three months ended march 31, 2023 is adjusted for a $1.6 million gain on sale of vessel. tables reconciling net income to adjusted ebitda can be found at the end of this earnings release. dividend payment danaos has declared a dividend of $0.75 per share of common stock for the first quarter of 2023, which is payable on june 7, 2023 to stockholders of record as of may 26, 2023. recent developments as of the date of this release, we have repurchased in total 683,889 shares of our common stock in the open market for $40.5 million, under our share repurchase program of up to $100 million announced in june 2022. on may 12, 2023, we made an early prepayment of our outstanding leaseback obligations related to two of our vessels, which amounted to $66.3 million as of march 31, 2023. on april 28, 2023, we entered into contracts for the construction of two 6,000 teu container vessels with the latest eco design characteristics. the vessels are expected to be delivered in the fourth quarter of 2024 and second quarter of 2025, respectively. conference call and webcast on tuesday, may 16, 2023 at 9:00 a.m. et, the company's management will host a conference call to discuss the results. participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 844 802 2437 (us toll free dial in), 0800 279 9489 (uk toll free dial in) or +44 (0) 2075 441 375 (standard international dial in). please indicate to the operator that you wish to join the danaos corporation earnings call. a telephonic replay of the conference call will be available until may 23, 2023 by dialing 1 877 344 7529 (us toll free dial in) or 1-412-317-0088 (standard international dial in) and using 9465910# 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 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 8 under construction containerships aggregating 58,398 teus ranks danaos among the largest containership charter owners in the world based on total teu capacity. our fleet is chartered to many of the world's largest liner companies on fixed-rate charters. our long track record of success is predicated on our efficient and rigorous operational standards and environmental controls. danaos corporation's shares trade on the new york stock exchange under the symbol "dac". forward-looking statements matters discussed in this release may constitute forward-looking statements within the meaning of the 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 impact of the covid-19 pandemic and efforts throughout the world to contain its spread, including effects on global economic activity, demand for seaborne transportation of containerized cargo, the ability and willingness of charterers to perform their obligations to us, charter rates for containerships, shipyards constructing our contracted newbuilding vessels, performing scrubber installations, drydocking and repairs, changing vessel crews and availability of financing, 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 dry-docking, changes in danaos corporation's operating expenses, including bunker prices, dry-docking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, including the conflict in ukraine and related sanctions, potential disruption of shipping routes due to accidents and political events or acts by terrorists. risks and uncertainties are further described in reports filed by danaos corporation with the u.s. securities and exchange commission. visit our website at www.danaos.com appendix fleet utilization danaos had 44 unscheduled off-hire days in the three months ended march 31, 2023. the following table summarizes vessel utilization and the impact of the off-hire days on the company’s revenue. vessel utilization (no. of days) first quarter first quarter 2023 2022 ownership days 6,150 6,390 less off-hire days: scheduled off-hire days (150 ) (148 ) other off-hire days (44 ) (16 ) operating days 5,956 6,226 vessel utilization 96.8 % 97.4 % operating revenues (in '000s of us dollars) $ 243,574 $ 229,901 average gross daily charter rate $ 40,896 $ 36,926 fleet list the following table describes in detail our fleet deployment profile as of may 12, 2023: vessel name vessel size (teu) year built expiration of charter(1) hyundai ambition 13,100 2012 june 2024 hyundai speed 13,100 2012 june 2024 hyundai smart 13,100 2012 may 2024 hyundai respect 13,100 2012 march 2024 hyundai honour 13,100 2012 february 2024 express rome 10,100 2011 may 2024 express berlin 10,100 2011 august 2026 express athens 10,100 2011 may 2024 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 june 2024 cma cgm attila 8,530 2011 october 2023 cma cgm tancredi 8,530 2011 november 2023 cma cgm bianca 8,530 2011 january 2024 cma cgm samson 8,530 2011 march 2024 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 february 2024 ym mandate 6,500 2010 january 2028 ym maturity 6,500 2010 april 2028 zim savannah 6,402 2002 may 2024 dimitra c 6,402 2002 january 2024 suez canal 5,610 2002 february 2024 kota lima 5,544 2002 november 2024 wide alpha 5,466 2014 march 2024 stephanie c 5,466 2014 june 2025 maersk euphrates 5,466 2014 april 2024 wide hotel 5,466 2015 may 2024 wide india 5,466 2015 november 2025 wide juliet 5,466 2015 october 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 paolo (ex zim sao paolo) 4,253 2008 july 2023 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 may 2023 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 july 2023 phoenix d 2,200 1997 march 2025 vessels under construction 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 - (1) earliest date charters could expire. some charters include options for the charterer to extend their terms. 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, 2023 2022 operating revenues $ 243,574 $ 229,901 operating expenses vessel operating expenses (40,639 ) (39,164 ) depreciation & amortization (35,364 ) (36,079 ) general & administrative (6,845 ) (7,391 ) other operating expenses (7,883 ) (7,189 ) gain on sale of vessels 1,639 - income from operations 154,482 140,078 other income/(expenses) interest income 2,723 1 interest expense (6,722 ) (17,114 ) gain on investments - 221,717 other finance expenses (976 ) (605 ) equity loss on investments (2,588 ) - other income/(expenses), net 175 499 realized loss on derivatives (893 ) (893 ) total other income/(expenses), net (8,281 ) 203,605 income before income taxes 146,201 343,683 income taxes - (12,218 ) net income $ 146,201 $ 331,465 earnings per share basic earnings per share $ 7.18 $ 16.02 diluted earnings per share $ 7.18 $ 16.00 basic weighted average number of common shares (in thousands of shares) 20,349 20,697 diluted weighted average number of common shares (in thousands of shares) 20,349 20,717 non-gaap measures1 reconciliation of net income to adjusted net income – unaudited three months ended three months ended march 31, march 31, 2023 2022 net income $ 146,201 $ 331,465 change in fair value of investments - (99,539 ) gain on sale of vessels (1,639 ) - amortization of financing fees and debt discount 693 3,371 adjusted net income $ 145,255 $ 235,297 adjusted earnings per share, diluted $ 7.14 $ 11.36 diluted weighted average number of shares (in thousands of shares) 20,349 20,717 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, 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 march 31, december 31, 2023 2022 assets current assets cash, cash equivalents and restricted cash $ 359,580 $ 267,668 accounts receivable, net 7,574 5,635 other current assets 102,631 99,218 469,785 372,521 non-current assets fixed assets, net 2,691,699 2,721,494 advances for vessels under construction 194,738 190,736 deferred charges, net 31,461 25,554 investments in affiliates 1,675 - other non-current assets 91,964 89,923 3,011,537 3,027,707 total assets $ 3,481,322 $ 3,400,228 liabilities and stockholders' equity current liabilities long-term debt, current portion $ 27,500 $ 27,500 long-term leaseback obligations, current portion 65,594 27,469 accounts payable, accrued liabilities & other current liabilities 159,786 173,438 252,880 228,407 long-term liabilities long-term debt, net 396,003 402,440 long-term leaseback obligations, net - 44,542 other long-term liabilities 142,202 164,425 538,205 611,407 stockholders’ equity common stock 203 203 additional paid-in capital 745,914 748,109 accumulated other comprehensive loss (73,130 ) (74,209 ) retained earnings 2,017,250 1,886,311 2,690,237 2,560,414 total liabilities and stockholders' equity $ 3,481,322 $ 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 march 31, march 31, 2023 2022 operating activities: net income $ 146,201 $ 331,465 adjustments to reconcile net income to net cash provided by operating activities: depreciation and amortization of right-of-use assets 31,529 33,359 amortization of deferred drydocking & special survey costs, finance cost and debt discount 4,528 6,091 amortization of assumed time charters (6,536 ) (16,651 ) prior service cost and periodic cost 492 - gain on investments - (99,539 ) gain on sale of vessels (1,639 ) - payments for drydocking/special survey (9,742 ) (9,255 ) equity loss on investments 2,588 - amortization of deferred realized losses on cash flow interest rate swaps 893 893 stock based compensation - 124 accounts receivable (1,939 ) (15 ) other assets, current and non-current (8,794 ) (133,417 ) accounts payable and accrued liabilities (5,085 ) 5,641 other liabilities, current and long-term (24,902 ) 768 net cash provided by operating activities 127,594 119,464 investing activities: vessel additions and advances for vessels under construction (5,736 ) (2,043 ) proceeds and advances received from sale of vessels 3,914 13,000 investments in affiliates (4,263 ) - net cash provided by/(used in) investing activities (6,085 ) 10,957 financing activities: debt repayment (6,875 ) (24,300 ) payments of leaseback obligations (6,629 ) (16,293 ) dividends paid (15,262 ) (15,535 ) repurchase of common stock (581 ) - payments of accumulated accrued interest - (1,435 ) finance costs (250 ) (3,950 ) net cash used in financing activities (29,597 ) (61,513 ) net increase in cash, cash equivalents and restricted cash 91,912 68,908 cash, cash equivalents and restricted cash, beginning of period 267,668 129,756 cash, cash equivalents and restricted cash, end of period $ 359,580 $ 198,664 danaos corporation reconciliation of net income to adjusted ebitda - unaudited (expressed in thousands of united states dollars) three months ended three months ended march 31, march 31, 2023 2022 net income $ 146,201 $ 331,465 depreciation and amortization of right-of-use assets 31,529 33,359 amortization of deferred drydocking & special survey costs 3,835 2,720 amortization of assumed time charters (6,536 ) (16,651 ) amortization of deferred finance costs, debt discount and commitment fees 1,451 3,371 amortization of deferred realized losses on interest rate swaps 893 893 interest income (2,723 ) (1 ) interest expense 6,029 13,743 income taxes - 12,218 gain on investments and dividend withholding taxes - (111,757 ) gain on sale of vessels (1,639 ) - stock based compensation - 124 adjusted ebitda(1) $ 179,040 $ 269,484 (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 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 march 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.
