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* 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 and twelve months ended December 31, 2012 and 2011. 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 Balance Sheets (Expressed in thousands of United States dollars) As of As of December 31, December 31, ------------- ------------- 2012 2011 ------------- -------------ASSETS (Unaudited) (Unaudited)CURRENT ASSETS Cash and cash equivalents $ 55,628 $ 51,362 Restricted cash 2,821 2,909 Accounts receivable, net 3,741 4,176 Other current assets 36,483 34,844 ------------- ------------- 98,673 93,291 ------------- -------------NON-CURRENT ASSETS Fixed assets, net 3,986,138 3,241,951 Advances for vessels under construction -- 524,286 Restricted cash, net of current portion 430 -- Deferred charges, net 88,821 99,711 Fair value of financial instruments 2,908 3,964 Other non-current assets 35,075 24,901 ------------- ------------- 4,113,372 3,894,813 ------------- -------------TOTAL ASSETS $ 4,212,045 $ 3,988,104 ============= =============LIABILITIES AND STOCKHOLDERS' EQUITYCURRENT LIABILITIES Long-term debt, current portion $ 125,076 $ 41,959 Vendor Financing, current portion 57,388 10,857 Accounts payable, accrued liabilities & other current liabilities 52,688 58,254 Fair value of financial instruments, current portion 130,100 120,623 ------------- ------------- 365,252 231,693 ------------- -------------LONG-TERM LIABILITIES Long-term debt, net of current portion 3,097,472 2,960,288 Vendor financing, net of current portion 121,754 54,288 Fair value of financial instruments, net of current portion 176,948 291,829 Other long-term liabilities 10,315 7,471 ------------- ------------- 3,406,489 3,313,876 ------------- -------------STOCKHOLDERS' EQUITY Common stock 1,096 1,096 Additional paid-in capital 546,023 545,884 Accumulated other comprehensive loss (353,271) (456,105) Retained earnings 246,456 351,660 ------------- ------------- 440,304 442,535 ------------- -------------TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,212,045 $ 3,988,104 ============= ============= DANAOS CORPORATION Condensed Statements of Cash Flows - (Unaudited) (Expressed in thousands of United States dollars) 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 Activities: Net (loss)/income $ (116,478) $ 9,058 $ (105,204) $ 13,437 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 38,514 29,598 143,938 106,178 Impairment loss 129,630 -- 129,630 -- Amortization of deferred drydocking & special survey costs, finance cost and other finance fees accrued 6,660 4,687 23,146 17,092 Stock based compensation 100 2,112 139 2,182 Payments for drydocking/special survey (2,968) (210) (9,308) (7,218) Non-cash change in fair value of warrants -- -- -- 2,253 Amortization of deferred realized losses on cash flow interest rate swaps 1,013 529 3,524 1,575 Realized loss on cash flow interest rate swaps deferred in Other Comprehensive Loss -- (6,413) (7,035) (31,320) Unrealized loss/(gain) on derivatives (7,593) (7,676) 739 (10,537) Gain on sale of vessels -- -- (830) -- Accounts receivable 6,020 1,621 435 (64) Other assets, current and non- current (11,641) (441) (11,813) (14,530) Accounts payable and accrued liabilities (4,665) 751 (2,380) (15,457) Other liabilities, current and non- current (1,069) (5,262) 1,577 (4,099) ------------ ------------ ------------ ------------Net Cash provided by Operating Activities 37,523 28,354 166,558 59,492 ------------ ------------ ------------ ------------Investing Activities: Vessels under construction and vessels additions (46) (190,473) (375,424) (644,593) Net proceeds from sale of vessel -- -- 5,635 -- ------------ ------------ ------------ ------------Net Cash used in Investing Activities (46) (190,473) (369,789) (644,593) ------------ ------------ ------------ ------------Financing Activities: Debt draw downs -- 154,689 266,920 482,286 Debt repayment (16,611) (2,592) (58,981) (45,369) Deferred costs -- (70) (100) (30,287) Increase in restricted cash (2,813) (2,813) (342) (2) ------------ ------------ ------------ ------------Net Cash (used in)/provided by Financing Activities (19,424) 149,214 207,497 406,628 ------------ ------------ ------------ ------------Net Increase/(Decrease) in cash and cash equivalents 18,053 (12,905) 4,266 (178,473)Cash and cash equivalents, beginning of period 37,575 64,267 51,362 229,835 ------------ ------------ ------------ ------------Cash and cash equivalents, end of period $ 55,628 $ 51,362 $ 55,628 $ 51,362 ============ ============ ============ ============
