(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.
(9) On January 17, 2013, we entered into an agreement to sell the Independence.
DANAOS CORPORATION Condensed Statements of Income - Unaudited(Expressed in thousands of United States dollars, except per share amounts) Three months Three months Twelve Twelve ended ended months ended months ended December 31, December 31, December 31, December 31, ------------ ------------ ------------ ------------ 2012 2011 2012 2011 ------------ ------------ ------------ ------------OPERATING REVENUES $ 151,826 $ 128,344 $ 589,009 $ 468,101OPERATING EXPENSES Vessel operating expenses (30,525) (31,679) (123,356) (119,127) Depreciation & amortization (40,396) (30,750) (150,008) (111,978) Impairment loss (129,630) -- (129,630) -- General & administrative (5,202) (6,982) (20,379) (21,028) Gain on sale of vessels -- -- 830 -- Other operating expenses (3,543) (2,850) (13,503) (10,765) ------------ ------------ ------------ ------------Income From Operations (57,470) 56,083 152,963 205,203 ------------ ------------ ------------ ------------OTHER EARNINGS (EXPENSES) Interest income 462 335 1,642 1,304 Interest expense (23,288) (15,958) (87,340) (55,124) Other finance cost, net (5,114) (3,665) (18,107) (14,581) Other income/(expenses), net 48 (5) 811 (1,986) Realized (loss)/gain on derivatives (38,709) (34,879) (154,434) (130,341) Unrealized gain/(loss) on derivatives 7,593 7,147 (739) 8,962 ------------ ------------ ------------ ------------Total Other Income (Expenses), net (59,008) (47,025) (258,167) (191,766) ------------ ------------ ------------ ------------Net (Loss)/Income $ (116,478) $ 9,058 $ (105,204) $ 13,437 ============ ============ ============ ============(LOSS)/EARNINGS PER SHAREBasic & diluted net (loss)/ income per share $ (1.06) $ 0.08 $ (0.96) $ 0.12 ============ ============ ============ ============Basic & diluted weighted average number of common shares (in thousands of shares) 109,622 109,142 109,613 109,045 ============ ============ ============ ============ Non-GAAP Measures* Reconciliation of Net Income to Adjusted Net Income - Unaudited Three months Three months Twelve Twelve ended ended months ended months ended December 31, December 31, December 31, December 31, ------------ ------------ ------------ ------------ 2012 2011 2012 2011 ------------ ------------ ------------ ------------Net (loss)/income $ (116,478) $ 9,058 $ (105,204) $ 13,437Unrealized (gain)/loss on derivatives (7,593) (7,147) 739 (8,962)Realized loss on over-hedging portion of derivatives 1,362 8,663 19,042 38,858Comprehensive Financing Plan related fees -- -- -- 2,266Amortization of financing fees & finance fees accrued 4,778 3,535 17,076 11,292Impairment loss 129,630 -- 129,630 --Loss on fair value of warrants -- -- -- 2,253Stock based compensation -- 2,020 -- 2,020Gain on sale of vessels -- -- (830) -- ------------ ------------ ------------ ------------Adjusted Net Income $ 11,699 $ 16,129 $ 60,453 $ 61,164 ============ ============ ============ ============Adjusted Earnings Per Share $ 0.11 $ 0.15 $ 0.55 $ 0.56 ============ ============ ============ ============Weighted average number of shares 109,622 109,142 109,613 109,045
