(1) Earliest date charters could expire. Some charters include options to extend their terms.
(2) Vessel subject to charterer's option to purchase vessel after first eight years of time charter term for $78.0 million.
(3) On April 20, 2012, the APL Commodore was renamed to Hyundai Commodore at the request of the charterer of this vessel.
(4) On October 25, 2012, the Hyundai Duke was renamed to Duka.
(5) On January 31, 2012, the APL Federal was renamed to Hyundai Federal at the request of the charterer of this vessel.
(6) On March 18, 2012, the YM Colombo was renamed to SNL Colombo at the request of the charterer of this vessel.
(7) On April 9, 2012, the Taiwan Express was renamed to YM Seattle at the request of the charterer of this vessel.
(8) On July 21, 2012, the SCI Pride was renamed to Pride.
DANAOS CORPORATION Condensed Statements of Income- Unaudited(Expressed in thousands of United States dollars, except per share amounts) Three Three Nine Nine months months months months ended ended ended ended September September September September 30, 30, 30, 30, ---------- ---------- ---------- ---------- 2012 2011 2012 2011 ---------- ---------- ---------- ----------OPERATING REVENUES $ 156,289 $ 126,004 $ 437,183 $ 339,757OPERATING EXPENSES Vessel operating expenses (31,344) (31,521) (92,831) (87,448) Depreciation & amortization (40,091) (29,507) (109,612) (81,228) General & administrative (5,093) (4,701) (15,177) (14,046) Gain on sale of vessels -- -- 830 -- Other operating expenses (3,704) (3,640) (9,960) (7,915) ---------- ---------- ---------- ----------Income From Operations 76,057 56,635 210,433 149,120 ---------- ---------- ---------- ----------OTHER EARNINGS (EXPENSES) Interest income 426 323 1,180 969 Interest expense (24,202) (14,355) (64,052) (39,166) Other finance cost, net (5,034) (3,590) (12,993) (10,916) Other income/(expenses), net 287 118 763 (1,981) Realized (loss)/gain on derivatives (41,680) (35,300) (115,725) (95,462) Unrealized gain/(loss) on derivatives (12,888) (4,664) (8,332) 1,815 ---------- ---------- ---------- ----------Total Other Income (Expenses), net (83,091) (57,468) (199,159) (144,741) ---------- ---------- ---------- ----------Net (Loss)/Income $ (7,034) $ (833) $ 11,274 $ 4,379 ========== ========== ========== ==========EARNINGS/(LOSS) PER SHAREBasic & diluted net (loss)/ income per share $ (0.06) $ (0.01) $ 0.10 $ 0.04 ========== ========== ========== ==========Basic & diluted weighted average number of common shares (in thousands of shares) 109,613 109,003 109,609 108,865 ========== ========== ========== ========== Non-GAAP Measures* Reconciliation of Net Income to Adjusted Net Income - Unaudited Three Three Nine Nine months months months months ended ended ended ended September September September September 30, 30, 30, 30, ---------- ---------- ---------- ---------- 2012 2011 2012 2011 ---------- ---------- ---------- ----------Net (loss)/income $ (7,034) $ (833) $ 11,274 $ 4,379Unrealized (gain)/loss on derivatives 12,888 4,664 8,332 (1,815)Realized loss on over- hedging portion of derivatives 5,032 10,268 17,680 30,195Comprehensive Financing Plan related fees -- -- -- 2,266Amortization of financing fees & finance fees accrued 4,755 3,479 12,298 7,757Loss on fair value of warrants -- -- -- 2,253Gain on sale of vessels -- -- (830) -- ---------- ---------- ---------- ----------Adjusted Net Income $ 15,641 $ 17,578 $ 48,754 $ 45,035 ========== ========== ========== ==========Adjusted Earnings Per Share $ 0.14 $ 0.16 $ 0.44 $ 0.41 ========== ========== ========== ==========Weighted average number of shares 109,613 109,003 109,609 108,865
