During the nine months ended September 30, 2012, Danaos had an average of 62.1 containerships compared to 53.9 containerships for the same period in 2011. Our fleet utilization declined to 93.8% in the nine months ended September 30, 2012 compared to 97.9% in the same period in 2011, mainly due to the 848 days for which certain of our vessels were off-charter and laid-up by us in the nine months ended September 30, 2012. During the nine months ended September 30, 2012, our fleet utilization for the fleet under employment was 98.8% (excluding the laid up vessels).
Our adjusted net income was $48.8 million, or $0.44 per share, for the nine months ended September 30, 2012 compared to $45.0 million, or $0.41 per share, for the nine months ended September 30, 2011. We have adjusted our net income in the nine months ended September 30, 2012, for unrealized losses on derivatives of $8.3 million, realized losses on swaps of $17.7 million attributable to our over-hedging position, as well as a non-cash expense of $12.3 million for fees related to our comprehensive financing plan (comprised of non-cash, amortizing and accrued finance fees) and a gain on sale of vessel of $0.8 million. Please refer to the Adjusted Net Income reconciliation table, which appears later in this earnings release.
The increase of 8.4%, or $3.8 million, in adjusted net income for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011, was attributable to the increased Income from Operations, which was partially off-set by an increase in realized losses on our interest rate swap contracts (after the adjustment for the over-hedging portion), as well as increased interest expense (mainly due to the higher average indebtedness and the reduced interest being capitalized in 2012 following the completion of our newbuilding program in June 2012) during the nine months ended September 30, 2012 compared to the same period in 2011.
On a non-adjusted basis our net income was $11.3 million, or $0.10 per share, for the nine months ended September 30, 2012, compared to net income of $4.4 million, or $0.04 per share, for the nine months ended September 30, 2011.
Operating Revenue
Operating revenue increased 28.7%, or $97.4 million, to $437.2 million in the nine months ended September 30, 2012, from $339.8 million in the nine months ended September 30, 2011. The increase was primarily attributable to the addition of eight vessels to our fleet, as follows:
Vessel Name Vessel Size (TEU) Date Delivered------------------ ------------------ ------------------CMA CGM Bianca 8,530 October 26, 2011CMA CGM Samson 8,530 December 15, 2011Hyundai Together 13,100 February 16, 2012CMA CGM Melisande 8,530 February 28, 2012Hyundai Tenacity 13,100 March 8, 2012Hyundai Smart 13,100 May 3, 2012Hyundai Speed 13,100 June 7, 2012Hyundai Ambition 13,100 June 29, 2012
These additions to our fleet contributed revenues of $80.6 million during the nine months ended September 30, 2012 (1,560 operating days in total).
Furthermore, operating revenues for the nine months ended September 30, 2012, reflect:
•$36.0 million of incremental revenues in the nine months ended September 30, 2012 compared to the same period of 2011, related to two 3,400 TEU containerships (the Hanjin Algeciras and the Hanjin Constantza, which were added to our fleet on January 26, 2011 and April 15, 2011, respectively), three 10,100 TEU containerships (the Hanjin Germany, the Hanjin Italy and the Hanjin Greece, which were added to our fleet on March 10, 2011, April 6, 2011 and May 4, 2011, respectively) and two 8,530 TEU containerships (the CMA CGM Attila and the CMA CGM Tancredi, which were added to our fleet on July 8, 2011 and August 22, 2011, respectively).
•$1.3 million decrease in revenues in the nine months ended September 30, 2012 compared to the same period in 2011, related to the sale of one 2,130 TEU containership, the Montreal, on April 27, 2012.
•$17.9 million decrease in revenues in the nine months ended September 30, 2012 compared to the same period of 2011. This was mainly attributable to increased off-hire days by 738 days, to 1,048 days in the nine months ended September 30, 2012, from 310 days in the nine months ended September 30, 2011 (mainly attributable to certain vessels that were off-charter and laid up for 848 days during the nine months ended September 30, 2012 compared to 17 days during the nine months ended September 30, 2011).
