ATHENS, GREECE -- (Marketwired) -- 11/03/15 -- Danaos Corporation ("Danaos") (NYSE: DAC), one of the world's largest independent owners of containerships, today reported unaudited results for the period ended September 30, 2015.

Highlights for the Third Quarter and Nine Months Ended September 30, 2015:

• Operating revenues of $144.5 million for the three months ended September 30, 2015 compared to $139.5 million for the three months ended September 30, 2014, an increase of 3.6%. Operating revenues of $424.6 million for the nine months ended September 30, 2015 compared to $411.4 million for the nine months ended September 30, 2014, an increase of 3.2%.
• Adjusted EBITDA1 of $106.8 million for the three months ended September 30, 2015 compared to $104.1 million for the three months ended September 30, 2014, an increase of 2.6%. Adjusted EBITDA1 of $312.6 million for the nine months ended September 30, 2015 compared to $299.5 million for the nine months ended September 30, 2014, an increase of 4.4%.
• Adjusted net income1 of $43.8 million, or $0.40 per share, for the three months ended September 30, 2015 compared to $18.0 million, or $0.16 per share, for the three months ended September 30, 2014, an increase of 143.3%. Adjusted net income1 of $112.3 million, or $1.02 per share, for the nine months ended September 30, 2015 compared to $36.6 million, or $0.33 per share, for the nine months ended September 30, 2014, an increase of 206.8%.
• The remaining average charter duration of our fleet was 7.4 years as of September 30, 2015, weighted by aggregate contracted charter hire.
• Total contracted operating revenues were $3.3 billion as of September 30, 2015, with charters extending through 2028.
• Charter coverage of 95.0% for the next 12 months in terms of operating revenues and 88.3% in terms of contracted operating days.
• In August 2015, Danaos entered into a joint venture with its largest stockholder, to form Gemini Shipholdings Corporation ("Gemini"). Danaos' 49% initial ownership interest in Gemini was acquired through an investment of $7.35 million. Gemini has already acquired three containerships, the 6,422 TEU vessel 'NYK Lodestar' built in 2001, the 5,610 TEU vessel 'Suez Canal' built in 2002 and the 5,544 TEU vessel 'Genoa' built in 2002. Gemini has also recently entered into an in principle agreement to acquire on subjects one more 6,422 TEU containership built in 2002. The joint venture is reported under the 'Equity Method' accounting within our financial statements.
  
  

Three and Nine Months Ended September 30, 2015
Financial Summary
(Expressed in thousands of United States dollars, except per share amounts)
		Three months ended September 30,			Three months ended September 30,			Nine months ended September 30,			Nine months ended September 30,
		2015			2014			2015			2014
		(unaudited)
Operating revenues		$	144,542		$	139,496		$	424,616		$	411,422
Net income		$	42,068		$	22,406		$	110,482		$	47,456
Adjusted net income1		$	43,783		$	18,020		$	112,336		$	36,592
Earnings per share		$	0.38		$	0.20		$	1.01		$	0.43
Adjusted earnings per share1		$	0.40		$	0.16		$	1.02		$	0.33
Weighted average number of shares (in thousands)			109,785			109,669			109,785			109,669
Adjusted EBITDA1		$	106,772		$	104,144		$	312,626		$	299,511

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.

Danaos' CEO Dr. John Coustas commented:

We are pleased to report yet another strong quarter with adjusted net income of $43.8 million, or 40 cents per share, representing an improvement of 143.3% compared to the adjusted net income of $18.0 million, or 16 cents per share reported for the 3rd quarter of 2014.

The main drivers of the improvement in the company's profitability between the 2 quarters were a $21.8 million decrease in net financing costs together with a $5.0 million increase in operating revenues. Our financing costs will continue to decrease and, as a result, earnings will continue to increase, as we continue to execute our comprehensive debt reduction plan and benefit from the expiration of expensive interest rate swaps over the next 2 quarters.

During the 3rd quarter of the year, the industry witnessed a deterioration in the fundamentals of the container market both in terms of freight rates and charter rates. Idle tonnage has now surpassed the 1 million TEU mark, which represents approximately 5% of the world fleet. This was mainly driven by slower than expected demand growth in Northern Europe and the emerging markets, a trend verified by downward revisions of GDP growth projections recently published by the IMF. The silver lining is that newbuilding ordering has effectively come to a halt, while we also expect to see increased scrapping activity over the next 12 months. The combination of supply moderation and the eventual resumption of stronger demand growth will drive the containership sector recovery, which we see beginning in the spring of 2016 and strengthening into 2017.

Undeniably, the current market offers many attractive opportunities to acquire assets, particularly in the second-hand market for Post Panamax vessels. During the 3rd quarter we established Gemini Shipholdings Corporation, a joint venture in which Danaos Corporation holds a 49% equity interest, to act against these opportunities. Gemini has already acquired two 5,500 vessels and one 6,500 TEU vessel all built in 2001/2002 and has recently agreed to acquire on subjects another 6,500 TEU containership built in 2002.

Our investment in Gemini allows us to resume our growth strategy as weakness in the containership market presents compelling value. It is important to stress that we are doing this without diluting our shareholders and in alignment with the interests of our largest shareholder.

Our charter coverage continues to be at a strong 95% in terms of operating revenues for the next 12 months, which insulates us from market weakness. At the same time, our $5,700 daily operating cost clearly positions us as one of the most efficient operators in the industry.

We will continue our strategy of deleveraging our balance sheet and managing our fleet efficiently. Additionally, as the market presents accretive acquisition opportunities, we will leverage the strength of our platform and our relationships in the financial community to deliver value to our shareholders.

Three months ended September 30, 2015 compared to the three months ended September 30, 2014

During the three months ended September 30, 2015, Danaos had an average of 56.0 containerships compared to 54.0 containerships for the three months ended September 30, 2014. Our fleet utilization increased to 100.0% in the three months ended September 30, 2015 compared to 99.5% in the three months ended September 30, 2014.

Our adjusted net income amounted to $43.8 million, or $0.40 per share, for the three months ended September 30, 2015 compared to $18.0 million, or $0.16 per share, for the three months ended September 30, 2014. We have adjusted our net income in the three months ended September 30, 2015 for unrealized gains on derivatives of $2.6 million, as well as a non-cash expense of $4.4 million for fees related to our comprehensive financing plan (comprised of non-cash, amortizing and accrued finance fees). Please refer to the Adjusted Net Income reconciliation table, which appears later in this earnings release.

The increase of $25.8 million in adjusted net income for the three months ended September 30, 2015 compared to the three months ended September 30, 2014 was mainly attributed to a reduction of $21.8 million in net finance costs mainly due to lower debt balances and interest rate swap expirations and an increase of $5.0 million in operating revenues, as described below, which were partially offset by a $1.0 million loss on equity investments.

On a non-adjusted basis, our net income amounted to $42.1 million, or $0.38 per share, for the three months ended September 30, 2015, compared to net income of $22.4 million, or $0.20 per share, for the three months ended September 30, 2014.

Operating Revenues
Operating revenues increased by 3.6%, or $5.0 million, to $144.5 million in the three months ended September 30, 2015, from $139.5 million in the three months ended September 30, 2014.

Operating revenues for the three months ended September 30, 2015 reflect:

• $3.4 million of additional revenues in the three months ended September 30, 2015 compared to the three months ended September 30, 2014, related to the Priority and the Performance, which were added to our fleet on November 5, 2014.
  
  
• $0.3 million incremental revenues in the three months ended September 30, 2015 compared to the three months ended September 30, 2014, related to revenue recognition accounting of the Zim restructuring.
  
  
• $1.0 million of higher revenues in the three months ended September 30, 2015 compared to the three months ended September 30, 2014 due to improved re-chartering of some of our vessels at higher rates.
  
  
• $0.3 million of additional revenues due to improved fleet utilization in the three months ended September 30, 2015 compared to the three months ended September 30, 2014.

Vessel Operating Expenses
Vessel operating expenses increased by 5.2%, or $1.4 million, to $28.2 million in the three months ended September 30, 2015, from $26.8 million in the three months ended September 30, 2014. The increase is mainly attributed to incremental operating expenses of $1.1 million for the vessels Priority and the Performance which were acquired on November 5, 2014.

The average daily operating cost per vessel slightly increased to $5,669 per day for the three months ended September 30, 2015, from $5,611 per day for the three months ended September 30, 2014. Management believes that our daily operating cost ranks as one of 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 3.5%, or $1.2 million, to $33.2 million in the three months ended September 30, 2015, from $34.4 million in the three months ended September 30, 2014, mainly due to the lower depreciation expense on the eight 2,200 TEU vessels with respect to which we recorded an impairment charge on December 31, 2014.

Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs decreased by $0.2 million, to $0.9 million in the three months ended September 30, 2015, from $1.1 million in the three months ended September 30, 2014. The decrease is mainly due to the expiration of the amortization periods related to certain vessels over the last twelve months.

General and Administrative Expenses
General and administrative expenses increased by $0.3 million, to $5.5 million in the three months ended September 30, 2015, from $5.2 million in the three months ended September 30, 2014. Effective January 1, 2015, our management fees were adjusted to a fee of $850 per day, a fee of $425 per vessel per day for vessels on bareboat charter and a fee of $850 per vessel per day for vessels on time charter.

Other Operating Expenses
Other Operating Expenses include Voyage Expenses.

Voyage Expenses
Voyage expenses decreased by $0.1 million, to $3.0 million in the three months ended September 30, 2015, from $3.1 million in the three months ended September 30, 2014.

Interest Expense and Interest Income
Interest expense decreased by 10.7%, or $2.1 million, to $17.6 million in the three months ended September 30, 2015, from $19.7 million in the three months ended September 30, 2014. The change in interest expense was mainly due to the decrease in our average debt by $217.4 million, to $2,875.0 million in the three months ended September 30, 2015, from $3,092.4 million in the three months ended September 30, 2014, as well as the decrease in the cost of debt service in the three months ended September 30, 2015 compared to the three months ended September 30, 2014, mainly driven by the accelerated amortization of our fixed rate debt, which bears a higher cost compared to our floating rate debt.

The Company is rapidly deleveraging its balance sheet. As of September 30, 2015, the debt outstanding was $2,860.1 million compared to $3,063.2 million as of September 30, 2014.

Interest income remained stable amounting to $0.9 million in the three months ended September 30, 2015 and in the three months ended September 30, 2014.

Other finance costs, net
Other finance costs, net decreased by $0.4 million, to $4.6 million in the three months ended September 30, 2015, from $5.0 million in the three months ended September 30, 2014. This decrease was mainly due to the $0.3 million decrease in amortizing finance fees (which were deferred and are amortized over the term of the respective credit facilities) in the three months ended September 30, 2015 compared to the three months ended September 30, 2014.

Equity loss on investments
Equity loss on investments of $1.0 million in the three months ended September 30, 2015 relates to the investment in Gemini made in August 2015.

Unrealized gain on derivatives
Unrealized gain on interest rate swaps amounted to $2.6 million in the three months ended September 30, 2015 compared to a gain of $9.1 million in the three months ended September 30, 2014. The unrealized gains were attributable to mark to market valuation of our swaps due to the discontinuation of hedge accounting since July 1, 2012, as well as reclassification of unrealized losses from Accumulated Other Comprehensive Loss to our earnings.

Realized loss on derivatives
Realized loss on interest rate swaps decreased by $19.6 million, to $12.2 million in the three months ended September 30, 2015, from $31.8 million in the three months ended September 30, 2014. This decrease is attributable to a $1,617.4 million lower average notional amount of swaps during the three months ended September 30, 2015 compared to the three months ended September 30, 2014 as a result of swap expirations.

Adjusted EBITDA
Adjusted EBITDA increased by 2.6%, or $2.7 million, to $106.8 million in the three months ended September 30, 2015, from $104.1 million in the three months ended September 30, 2014. As outlined earlier, this increase is mainly attributed to a $5.0 million increase in operating revenues partially offset by a $1.4 million increase in vessel operating expenses and $1.0 million loss on equity investments. Adjusted EBITDA for the three months ended September 30, 2015 is adjusted for unrealized gain on derivatives of $2.6 million and realized losses on derivatives of $11.1 million. Tables reconciling Adjusted EBITDA to Net Income can be found at the end of this earnings release.

Nine months ended September 30, 2015 compared to the nine months ended September 30, 2014

During the nine months ended September 30, 2015, Danaos had an average of 56.0 containerships compared to 56.1 containerships for the nine months ended September 30, 2014. Our fleet utilization increased to 99.2% in the nine months ended September 30, 2015 compared to 97.3% in the nine months ended September 30, 2014.

Our adjusted net income amounted to $112.3 million, or $1.02 per share, for the nine months ended September 30, 2015 compared to $36.6 million, or $0.33 per share, for the nine months ended September 30, 2014. We have adjusted our net income in the nine months ended September 30, 2015 for unrealized gains on derivatives of $11.6 million and a non-cash expense of $13.4 million for fees related to our comprehensive financing plan (comprised of non-cash, amortizing and accrued finance fees). Please refer to the Adjusted Net Income reconciliation table, which appears later in this earnings release.

The increase of $75.7 million in adjusted net income for the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014 was mainly attributed to a reduction of $58.4 million in net finance costs mainly due to lower debt balances and interest rate swap expirations, a $5.3 million improvement in total operating costs and an increase of $13.2 million in operating revenues, as described below, which were partially offset by a $1.0 million loss on equity investments.

On a non-adjusted basis our net income amounted to $110.5 million, or $1.01 per share, for the nine months ended September 30, 2015, compared to net income of $47.5 million, or $0.43 per share, for the nine months ended September 30, 2014.

Operating Revenues
Operating revenues increased by 3.2%, or $13.2 million, to $424.6 million in the nine months ended September 30, 2015, from $411.4 million in the nine months ended September 30, 2014.

Operating revenues for the nine months ended September 30, 2015 reflect:

• $9.0 million of additional revenues in the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014, related to the Priority and the Performance, which were added to our fleet on November 5, 2014.
  
  
• $4.6 million increase in revenues in the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014, related to revenue recognition accounting of the Zim restructuring that became effective on July 16, 2014.
  
  
• $1.0 million increase in revenues in the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014 due to improved re-chartering of some of our vessels at higher rates.
  
  
• $2.1 million decrease in revenues in the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014, related to the Commodore, the Messologi and the Mytilini, which were generating revenues in the nine months ended September 30, 2014 and were sold within 2014.
  
  
• $0.7 million of additional revenues due to improved fleet utilization in the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014.

Vessel Operating Expenses
Vessel operating expenses decreased by 1.0%, or $0.9 million, to $85.1 million in the nine months ended September 30, 2015, from $86.0 million in the nine months ended September 30, 2014. The reduction is attributable to an improvement in the average daily operating cost per vessel between the two periods.

The average daily operating cost per vessel decreased to $5,770 per day for the nine months ended September 30, 2015, from $5,895 per day for the nine months ended September 30, 2014, mainly as a result of an 17.7% improvement in the average Euro to Dollar exchange rate between the two periods. Management believes that our daily operating cost ranks as one of 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 3.8%, or $3.9 million, to $98.6 million in the nine months ended September 30, 2015 from $102.5 million in the nine months ended September 30, 2014, mainly due to the lower depreciation expense on the eight 2,200 TEU vessels with respect to which we recorded an impairment charge on December 31, 2014.

Amortization of Deferred Dry-docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs decreased by $0.3 million, to $2.9 million in the nine months ended September 30, 2015, from $3.2 million in the nine months ended September 30, 2014. The decrease is mainly due to the expiration of the amortization periods related to certain vessels during the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014.

General and Administrative Expenses
General and administrative expenses increased by $0.2 million, to $16.1 million in the nine months ended September 30, 2015, from $15.9 million the nine months ended September 30, 2014. Effective January 1, 2015, our management fees were adjusted to a fee of $850 per day, a fee of $425 per vessel per day for vessels on bareboat charter and a fee of $850 per vessel per day for vessels on time charter.

Other Operating Expenses
Other Operating Expenses include Voyage Expenses.

Voyage Expenses
Voyage expenses decreased by $0.4 million, to $9.2 million in the nine months ended September 30, 2015, from $9.6 million in the nine months ended September 30, 2014.

Gain on sale of vessels
Gain on sale of vessels was nil in the nine months ended September 30, 2015 compared to a gain of $5.7 million in the nine months ended September 30, 2014. During the nine months ended September 30, 2014, we sold the Marathonas on February 26, 2014, the Commodore on April 25, 2014, the Duka on May 15, 2014, the Mytilini on May 15, 2014 and the Messologi on May 20, 2014. There were no vessel sales during the nine months ended September 30, 2015.

Interest Expense and Interest Income
Interest expense decreased by 12.3%, or $7.5 million, to $53.5 million in the nine months ended September 30, 2015, from $61.0 million in the nine months ended September 30, 2014. The change in interest expense was mainly due to the decrease in our average debt by $219.7 million, to $2,926.0 million in the nine months ended September 30, 2015, from $3,145.7 million in the nine months ended September 30, 2014, as well as the decrease in the cost of debt servicing in the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014, mainly driven by the accelerated amortization of our fixed rate debt, which bears a higher cost compared to our floating rate debt.

The Company is rapidly deleveraging its balance sheet. As of September 30, 2015, the debt outstanding was $2,860.1 million compared to $3,063.2 million as of September 30, 2014.

Interest income amounted to $2.5 million in the nine months ended September 30, 2015 compared to $0.9 million in the nine months ended September 30, 2014. This increase is attributed to the interest income related to the Zim restructuring that became effective on July 16, 2014.

Other finance costs, net
Other finance costs, net, decreased by $0.7 million, to $14.2 million in the nine months ended September 30, 2015, from $14.9 million in the nine months ended September 30, 2014. This decrease was due to the $0.6 million decrease in amortizing finance fees (which were deferred and are amortized over the term of the respective credit facilities) in the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014.

Equity loss on investments
Equity loss on investments of $1.0 million in the nine months ended September 30, 2015 relates to the investment in Gemini made in August 2015.

Unrealized gain on derivatives
Unrealized gain on interest rate swaps amounted to $11.6 million in the nine months ended September 30, 2015 compared to a gain of $19.3 million in the nine months ended September 30, 2014. The unrealized gains were attributable to mark to market valuation of our swaps due to the discontinuation of hedge accounting since July 1, 2012, as well as reclassification of unrealized losses from Accumulated Other Comprehensive Loss to our earnings.

Realized loss on derivatives
Realized loss on interest rate swaps decreased by $49.3 million, to $47.8 million in the nine months ended September 30, 2015, from $97.1 million in the nine months ended September 30, 2014. This decrease is attributable to $1,373.8 million lower average notional amount of swaps during the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014 as a result of swap expirations.

Adjusted EBITDA
Adjusted EBITDA increased by 4.4%, or $13.1 million, to $312.6 million in the nine months ended September 30, 2015, from $299.5 million in the nine months ended September 30, 2014. As outlined earlier this increase is mainly attributed to a $13.2 million increase in operating revenues. Adjusted EBITDA for the nine months ended September 30, 2015 is adjusted for unrealized gain on derivatives of $11.6 million and realized losses on derivatives of $44.8 million. Tables reconciling Adjusted EBITDA to Net Income can be found at the end of this earnings release.

Recent news
Gemini, in which Danaos holds a 49% equity interest, has agreed to acquire on subjects a 6,422 TEU vessel built in 2002, which is expected to be delivered in February 2016.

Conference Call and Webcast
On Wednesday, November 4, 2015 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: 1 866 652 5200 (US Toll Free Dial In), 0800 279 9489 (UK Toll Free Dial In) or +44 (0) 2075 441 375 (Standard International Dial In). Please quote "Danaos Corporation" to the operator.

A telephonic replay of the conference call will be available until November 16, 2015 by dialing 1 877 344 7529 (US Toll Free Dial In) or +44 (0) 036 088 021 (Standard International Dial In). Access Code: 10074737#.

Audio Webcast:
There will also be a live and then archived webcast of the conference call through 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.

About Danaos Corporation
Danaos Corporation is one of the largest independent owners of modern, large-size containerships. Our current fleet of 59 containerships aggregating 351,815 TEUs, including three vessels owned by Gemini Shipholdings Corporation, a joint venture, ranks Danaos among the largest containership charter owners in the world based on total TEU capacity. Our fleet is predominantly chartered to many of the world's largest liner companies on fixed-rate, long-term 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 safeharbor 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, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. 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 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 drydocking, 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, 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 2 unscheduled off-hire days in the three months ended September 30, 2015. 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 2015				Second Quarter 2015				Third Quarter 2015				Total
Ownership Days				5,040				5,096				5,152				15,288
Less Off-hire Days:
	Scheduled Off-hire Days			(16	)			(16	)			-				(32	)
	Other Off-hire Days			(64	)			(17	)			(2	)			(83	)
Operating Days				4,960				5,063				5,150				15,173
Vessel Utilization				98.4	%			99.4	%			100.0	%			99.2	%
Operating Revenues (in '000s of US Dollars)			$	138,605			$	141,469			$	144,542			$	424,616
Average Gross Daily Charter Rate			$	27,945			$	27,942			$	28,066			$	27,985

Vessel Utilization (No. of Days)			First Quarter 2014				Second Quarter 2014				Third Quarter 2014				Total
Ownership Days				5,277				5,079				4,968				15,324
Less Off-hire Days:
	Scheduled Off-hire Days			(30	)			(14	)			(9	)			(53	)
	Other Off-hire Days			(225	)			(122	)			(14	)			(361	)
Operating Days				5,022				4,943				4,945				14,910
Vessel Utilization				95.2	%			97.3	%			99.5	%			97.3	%
Operating Revenues (in '000s of US Dollars)			$	135,486			$	136,440			$	139,496			$	411,422
Average Gross Daily Charter Rate			$	26,978			$	27,603			$	28,210			$	27,594

Fleet List

The following table describes in detail our fleet deployment profile as of November 3, 2015:

Vessel Name		Vessel Size (TEU)		Year Built		Expiration of Charter(1)
Containerships
Hyundai Ambition		13,100		2012		June 2024
Hyundai Speed		13,100		2012		June 2024
Hyundai Smart		13,100		2012		May 2024
Hyundai Tenacity		13,100		2012		March 2024
Hyundai Together		13,100		2012		February 2024
Hanjin Italy		10,100		2011		April 2023
Hanjin Germany		10,100		2011		March 2023
Hanjin Greece		10,100		2011		May 2023
CSCL Le Havre		9,580		2006		September 2018
CSCL Pusan		9,580		2006		July 2018
CMA CGM Melisande		8,530		2012		November 2023
CMA CGM Attila		8,530		2011		April 2023
CMA CGM Tancredi		8,530		2011		May 2023
CMA CGM Bianca		8,530		2011		July 2023
CMA CGM Samson		8,530		2011		September 2023
CSCL America		8,468		2004		September 2016
CSCL Europe		8,468		2004		June 2016
CMA CGM Moliere (2)		6,500		2009		August 2021
CMA CGM Musset (2)		6,500		2010		February 2022
CMA CGM Nerval (2)		6,500		2010		April 2022
CMA CGM Rabelais (2)		6,500		2010		June 2022
CMA CGM Racine (2)		6,500		2010		July 2022
YM Mandate		6,500		2010		January 2028
YM Maturity		6,500		2010		April 2028
Performance		6,402		2002		January 2016
Priority		6,402		2002		November 2015
Federal		4,651		1994		November 2015
SNL Colombo		4,300		2004		March 2019
YM Singapore		4,300		2004		October 2019
YM Seattle		4,253		2007		July 2019
YM Vancouver		4,253		2007		September 2019
Derby D		4,253		2004		January 2016
Deva		4,253		2004		December 2015
ZIM Rio Grande		4,253		2008		May 2020
ZIM Sao Paolo		4,253		2008		August 2020
OOCL Istanbul		4,253		2008		September 2020
ZIM Monaco		4,253		2009		November 2020
OOCL Novorossiysk		4,253		2009		February 2021
ZIM Luanda		4,253		2009		May 2021
Dimitris C		3,430		2001		January 2016
Hanjin Constantza		3,400		2011		February 2021
Hanjin Algeciras		3,400		2011		November 2020
Hanjin Buenos Aires		3,400		2010		March 2020
Hanjin Santos		3,400		2010		May 2020
Hanjin Versailles		3,400		2010		August 2020
MSC Zebra(3)		2,602		2001		October 2017
Amalia C		2,452		1998		March 2016
Danae C(4)		2,524		2001		December 2015
Hyundai Advance		2,200		1997		June 2017
Hyundai Future		2,200		1997		August 2017
Hyundai Sprinter		2,200		1997		August 2017
Hyundai Stride		2,200		1997		July 2017
Hyundai Progress		2,200		1998		December 2017
Hyundai Bridge		2,200		1998		January 2018
Hyundai Highway		2,200		1998		January 2018
Hyundai Vladivostok		2,200		1997		May 2017
NYK Lodestar(5)		6,422		2001		September 2017
Suez Canal(5)		5,610		2002		--
Genoa(5)		5,544		2002		--

(1)	Earliest date charters could expire. Some charters include options to extend their terms.
(2)	The charters with respect to the CMA CGM Moliere, the CMA CGM Musset, the CMA CGM Nerval, the CMA CGM Rabelais and the CMA CGM Racine include an option for the charterer, CMA-CGM, to purchase the vessels eight years after the commencement of the respective charters, which will fall in September 2017, March 2018, May 2018, July 2018 and August 2018, respectively, each for $78.0 million.
(3)	On September 14, 2014, the Niledutch Zebra was renamed to MSC Zebra at the request of the charterer of this vessel.
(4)	Danae C was renamed to Niledutch Palanca at the request of the charterer of this vessel from March 25, 2014 to June 8, 2015.
(5)	Vessels acquired by Gemini Shipholdings Corporation, in which Danaos holds a 49% equity interest.

DANAOS CORPORATION
Condensed Statements of Income- Unaudited
(Expressed in thousands of United States dollars, except per share amounts)
			Three months ended September 30,				Three months ended September 30,				Nine months ended September 30,				Nine months ended September 30,
			2015				2014				2015				2014
OPERATING REVENUES			$	144,542			$	139,496			$	424,616			$	411,422
OPERATING EXPENSES
	Vessel operating expenses			(28,165	)			(26,842	)			(85,058	)			(85,991	)
	Depreciation & amortization			(34,085	)			(35,465	)			(101,482	)			(105,697	)
	General & administrative			(5,486	)			(5,211	)			(16,137	)			(15,913	)
	Gain on sale of vessels			-				-				-				5,709
	Other operating expenses			(2,952	)			(3,097	)			(9,170	)			(9,617	)
Income From Operations				73,854				68,881				212,769				199,913
OTHER INCOME/(EXPENSES)
	Interest income			859				861				2,549				879
	Interest expense			(17,604	)			(19,692	)			(53,520	)			(60,951	)
	Other finance cost, net			(4,646	)			(4,985	)			(14,181	)			(14,898	)
	Equity loss on investments			(992	)			-				(992	)			-
	Other income, net			108				36				143				323
	Realized loss on derivatives			(12,159	)			(31,828	)			(47,837	)			(97,150	)
	Unrealized gain on derivatives			2,648				9,133				11,551				19,340
Total Other Expenses, net				(31,786	)			(46,475	)			(102,287	)			(152,457	)
Net Income			$	42,068			$	22,406			$	110,482			$	47,456
EARNINGS PER SHARE
	Basic & diluted net income per share		$	0.38			$	0.20			$	1.01			$	0.43
	Basic & diluted weighted average number of common shares (in thousands of shares)			109,785				109,669				109,785				109,669

Non-GAAP Measures*
Reconciliation of Net Income to Adjusted Net Income- Unaudited
		Three months ended September 30,				Three months ended September 30,				Nine months ended September 30,				Nine months ended September 30,
		2015				2014				2015				2014
Net income		$	42,068			$	22,406			$	110,482			$	47,456
Unrealized gain on derivatives			(2,648	)			(9,133	)			(11,551	)			(19,340	)
Amortization of financing fees & finance fees accrued			4,363				4,747				13,405				14,185
Gain on sale of vessels			-				-				-				(5,709	)
Adjusted Net Income		$	43,783			$	18,020			$	112,336			$	36,592
Adjusted Earnings Per Share		$	0.40			$	0.16			$	1.02			$	0.33
Weighted average number of shares			109,785				109,669				109,785				109,669

* 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 nine months ended September 30, 2015 and 2014. 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 - Unaudited
(Expressed in thousands of United States dollars)
			As of September 30,				As of December 31,
			2015				2014
ASSETS
CURRENT ASSETS
	Cash and cash equivalents		$	96,197			$	57,730
	Restricted cash			-				2,824
	Accounts receivable, net			7,852				7,904
	Fair value of financial instruments			246				-
	Other current assets			37,129				34,615
				141,424				103,073
NON-CURRENT ASSETS
	Fixed assets, net			3,526,514				3,624,338
	Deferred charges, net			42,997				55,275
	Investments in affiliates			6,358				-
	Fair value of financial instruments			-				664
	Other non-current assets			71,067				67,842
				3,646,936				3,748,119
TOTAL ASSETS			$	3,788,360			$	3,851,192
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
	Long-term debt, current portion		$	254,286			$	178,116
	Vendor Financing, current portion			28,532				46,530
	Accounts payable, accrued liabilities & other current liabilities			46,123				52,414
	Fair value of financial instruments, current portion			11,776				51,022
				340,717				328,082
LONG-TERM LIABILITIES
	Long-term debt, net of current portion			2,577,236				2,773,004
	Vendor financing, net of current portion			-				17,837
	Fair value of financial instruments, net of current portion			1,546				2,398
	Other long-term liabilities			38,668				41,722
				2,617,450				2,834,961
STOCKHOLDERS' EQUITY
	Common stock			1,098				1,097
	Additional paid-in capital			546,734				546,735
	Accumulated other comprehensive loss			(108,180	)			(139,742	)
	Retained earnings			390,541				280,059
				830,193				688,149
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	3,788,360			$	3,851,192

DANAOS CORPORATION
Condensed Statements of Cash Flows - (Unaudited)
(Expressed in thousands of United States dollars)
			Three months ended September 30,				Three months ended September 30,				Nine months ended September 30,				Nine months ended September 30,
			2015				2014				2015				2014
Operating Activities:
	Net income		$	42,068			$	22,406			$	110,482			$	47,456
	Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation			33,217				34,396				98,558				102,471
	Amortization of deferred drydocking & special survey costs, finance cost and other finance fees accrued			5,231				5,816				16,329				17,411
	Payments for drydocking/special survey			(90	)			(266	)			(1,307	)			(4,055	)
	Amortization of deferred realized losses on cash flow interest rate swaps			1,012				1,012				3,004				3,004
	Equity loss on investments			992				-				992				-
	Unrealized gain on derivatives			(2,648	)			(9,133	)			(11,551	)			(19,340	)
	Gain on sale of vessels			-				-				-				(5,709	)
	Accounts receivable			(2,669	)			2,088				52				1,383
	Other assets, current and non-current			1,157				5,421				(5,739	)			1,376
	Accounts payable and accrued liabilities			(162	)			(1,721	)			(6,901	)			(2,833	)
	Other liabilities, current and non-current			(561	)			(570	)			(1,752	)			1,602
Net Cash provided by Operating Activities				77,547				59,449				202,167				142,766
Investing Activities:
	Vessel additions and vessel acquisitions			(196	)			(651	)			(734	)			(1,214	)
	Investments in affiliates			(7,350	)			-				(7,350	)
	Net proceeds from sale of vessels			-				-				-				50,602
Net Cash provided by/(used in) Investing Activities				(7,546	)			(651	)			(8,084	)			49,388
Financing Activities:
	Debt repayment			(50,763	)			(66,680	)			(157,748	)			(172,999	)
	Deferred finance costs			-				-				(692	)			-
	Decrease/(Increase) in restricted cash			2,824				21,009				2,824				(22,675	)
Net Cash used in Financing Activities				(47,939	)			(45,671	)			(155,616	)			(195,674	)
Net (Decrease)/ Increase in cash and cash equivalents				22,062				13,127				38,467				(3,520	)
Cash and cash equivalents, beginning of period				74,135				51,506				57,730				68,153
Cash and cash equivalents, end of period			$	96,197			$	64,633			$	96,197			$	64,633

Reconciliation of Net Income to Adjusted EBITDA
(Expressed in thousands of United States dollars)
		Three months ended September 30,				Three months ended September 30,				Nine months ended September 30,				Nine months ended September 30,
		2015				2014				2015				2014
Net income		$	42,068			$	22,406			$	110,482			$	47,456
Depreciation			33,217				34,396				98,558				102,471
Amortization of deferred drydocking & special survey costs			868				1,069				2,924				3,226
Amortization of deferred finance costs and write-offs and other finance fees accrued			4,363				4,747				13,405				14,185
Amortization of deferred realized losses on interest rate swaps			1,012				1,012				3,004				3,004
Interest income			(859	)			(861	)			(2,549	)			(879	)
Interest expense			17,604				19,692				53,520				60,951
Gain on sale of vessels			-				-				-				(5,709	)
Realized loss on derivatives			11,147				30,816				44,833				94,146
Unrealized gain on derivatives			(2,648	)			(9,133	)			(11,551	)			(19,340	)
Adjusted EBITDA(1)		$	106,772			$	104,144			$	312,626			$	299,511

1)

Adjusted EBITDA represents net income before interest income and expense, depreciation, amortization of deferred drydocking & special survey costs and deferred finance costs, amortization of deferred realized losses on interest rate swaps, unrealized (gain)/loss on derivatives, realized loss on derivatives and loss/(gain) on sale of vessels. 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 ability to service additional debt and make capital expenditures. In addition, we believe that Adjusted EBITDA is useful in evaluating our operating performance and liquidity position 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 and liquidity. 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 and nine months ended September 30, 2015 and 2014. 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.

For further information please contact:

Company Contact:

Evangelos Chatzis
Chief Financial Officer
Danaos Corporation
Athens, Greece
Tel.: +30 210 419 6480
E-Mail: cfo@danaos.com

Iraklis Prokopakis
Senior Vice President and Chief Operating Officer
Danaos Corporation
Athens, Greece
Tel.: +30 210 419 6400
E-Mail: coo@danaos.com

Investor Relations and Financial Media

Rose & Company
New York
Tel. 212-359-2228
E-Mail: danaos@rosecoglobal.com

Source: Danaos Corporation