Danaos Corp Files 20-F Annual Report for Fiscal Year Ended December 31, 2023

TL;DR

<b>Danaos Corp has submitted its 20-F annual report detailing financial performance and corporate structure for the fiscal year 2023.</b>

AI Summary

Danaos Corp (DAC) filed a Foreign Annual Report (20-F) with the SEC on February 29, 2024. Danaos Corp filed its 20-F annual report for the fiscal year ending December 31, 2023. The filing covers financial information and business operations for the period. Key financial statement components like Retained Earnings, Additional Paid-In Capital, and Accumulated Other Comprehensive Income are reported as of December 31, 2023, 2022, 2021, and 2020. Information regarding Common Stock and Restricted Common Stock is detailed for the fiscal years 2023, 2022, 2021, and 2020. The report includes details on share-based compensation awards for executive officers and employees of affiliated entities for various periods, including 2019, 2021, and 2022.

Why It Matters

For investors and stakeholders tracking Danaos Corp, this filing contains several important signals. This filing provides stakeholders with a comprehensive overview of Danaos Corp's financial health and operational status for the past fiscal year, crucial for investment decisions. The detailed breakdown of equity components and share-based compensation offers insights into the company's capital structure and its approach to employee incentives.

Risk Assessment

Risk Level: medium — Danaos Corp shows moderate risk based on this filing. The filing is a standard annual report (20-F), which typically contains a broad range of information. Specific risks would be detailed within the report's risk factors section, which is not fully provided here.

Analyst Insight

Review the detailed financial statements and risk factors within the full 20-F filing to assess Danaos Corp's financial position and future outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-29 — Filing Date (Date the 20-F was filed)
• 001-33060 — SEC File Number (SEC file number for Danaos Corp)
• 0001369241 — Central Index Key (Central Index Key for Danaos Corp)

Key Players & Entities

• Danaos Corp (company) — Filer of the 20-F report
• Sphinx Investment Corp (company) — Mentioned in relation to a date
• Royal Bank of Scotland (company) — Mentioned in relation to a date
• Danaos Shipping Company Limited (company) — Affiliated entity related to employee compensation

FAQ

Industry Context

Danaos Corp operates in the deep-sea foreign transportation of freight industry, primarily involving container ships.

Regulatory Implications

As a foreign private issuer, Danaos Corp files an annual report on Form 20-F with the U.S. Securities and Exchange Commission (SEC), which is a substitute for the annual report on Form 10-K.

What Investors Should Do

1. Thoroughly review the complete 20-F filing for detailed financial statements and disclosures.
2. Analyze the company's balance sheet, income statement, and cash flow statement for the fiscal year 2023.
3. Examine the risk factors section for potential challenges and uncertainties facing Danaos Corp.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 20-F filing.
• 2024-02-29: Filing Date — The date Danaos Corp officially submitted its 20-F annual report to the SEC.

Year-Over-Year Comparison

This is the initial data extracted for the 2023 20-F filing; a comparison to the previous filing would require access to that document.

Key Financial Figures

• $0.01 — nge on which registered Common stock, $0.01 par value per share DAC New York St
• $130 m — 262,766 BNP Paribas/Credit Agricole $130 mil. Facility 100,000 100,000 Alpha
• $55.25 m — acility 100,000 100,000 Alpha Bank $55.25 mil. Facility 47,750 47,750 Citibank
• $382.5 m — l. Facility 47,750 47,750 Citibank $382.5 mil. Revolving Credit Facility — — T
• $262.8 million — tion's unsecured senior notes due 2028 ($262.8 million on an actual basis), is secured and is
• $47.75 — se of indebtedness of our subsidiaries ($47.75 3 Table of Contents million on an
• $100.0 million — of indebtedness of Danaos Corporation ($100.0 million on an actual basis). See Note 10 "Long-
• $6.3 million — ferred finance costs, which amounted to $6.3 million. (3) Does not reflect dividend of $0.8
• $0.80 — lion. (3) Does not reflect dividend of $0.80 per share of common stock declared amou
• $15.5 m — e of common stock declared amounting to $15.5 million, which is payable on March 14, 20
• $36,000 — 00 TEU Panamax containership, which was $36,000 in May 2008, $24,600 at the end of Dece
• $24,600 — nership, which was $36,000 in May 2008, $24,600 at the end of December 2020, at an all-
• $100,000 — f December 2020, at an all-time high of $100,000 at the end of 2021 and declined to $17,
• $17,100 — ,000 at the end of 2021 and declined to $17,100 at the end of December 2023. Variations

Filing Documents

• dac-20231231x20f.htm (20-F) — 4415KB
• dac-20231231xex8.htm (EX-8) — 47KB
• dac-20231231xex12d1.htm (EX-12.1) — 14KB
• dac-20231231xex12d2.htm (EX-12.2) — 13KB
• dac-20231231xex13d1.htm (EX-13.1) — 6KB
• dac-20231231xex13d2.htm (EX-13.2) — 5KB
• dac-20231231xex15d1.htm (EX-15.1) — 3KB
• dac-20231231xex15d2.htm (EX-15.2) — 3KB
• dac-20231231xex97.htm (EX-97) — 34KB
• 0001104659-24-029397.txt (&nbsp;) — 15198KB
• dac-20231231.xsd (EX-101.SCH) — 114KB
• dac-20231231_cal.xml (EX-101.CAL) — 77KB
• dac-20231231_def.xml (EX-101.DEF) — 427KB
• dac-20231231_lab.xml (EX-101.LAB) — 870KB
• dac-20231231_pre.xml (EX-101.PRE) — 678KB
• dac-20231231x20f_htm.xml (XML) — 2298KB

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report: Yes No Table of Contents TABLE OF CONTENTS Page FORWARD-LOOKING INFORMATION 2 PART I 3

Identity of Directors, Senior Management and Advisers

Item 1. Identity of Directors, Senior Management and Advisers 3

Offer Statistics and Expected Timetable

Item 2. Offer Statistics and Expected Timetable 3

Key Information

Item 3. Key Information 3

Information on the Company

Item 4. Information on the Company 32

Unresolved Staff Comments

Item 4A. Unresolved Staff Comments 50

Operating and Financial Review and Prospects

Item 5. Operating and Financial Review and Prospects 50

Directors, Senior Management and Employees

Item 6. Directors, Senior Management and Employees 80

Major Shareholders and Related Party Transactions

Item 7. Major Shareholders and Related Party Transactions 87

Financial Information

Item 8. Financial Information 93

The Offer and Listing

Item 9. The Offer and Listing 94

Additional Information

Item 10. Additional Information 94

Quantitative and Qualitative Disclosures About Market Risk

Item 11. Quantitative and Qualitative Disclosures About Market Risk 109

Description of Securities Other than Equity Securities

Item 12. Description of Securities Other than Equity Securities 110 PART II 111

Defaults, Dividend Arrearages and Delinquencies

Item 13. Defaults, Dividend Arrearages and Delinquencies 111

Material Modifications to the Rights of Security Holders and Use of Proceeds

Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 111

Controls and Procedures

Item 15. Controls and Procedures 111

Audit Committee Financial Expert

Item 16A. Audit Committee Financial Expert 112

Code of Ethics

Item 16B. Code of Ethics 112

Principal Accountant Fees and Services

Item 16C. Principal Accountant Fees and Services 112

Exemptions from the Listing Standards for Audit Committees

Item 16D. Exemptions from the Listing Standards for Audit Committees 113

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 113

Change in Registrant's Certifying Accountant

Item 16F. Change in Registrant's Certifying Accountant 114

Corporate Governance

Item 16G. Corporate Governance 114

Mine Safety Disclosure

Item 16H. Mine Safety Disclosure 114

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 114

Insider Trading Policies

Item 16J. Insider Trading Policies 114

Cybersecurity

Item 16K. Cybersecurity 114 PART III 116

Financial Statements

Item 17. Financial Statements 116

Financial Statements

Item 18. Financial Statements 116

Exhibits

Item 19. Exhibits 116 i Table of Contents FORWARD-LOOKING INFORMATION This annual report contains forward-looking statements based on beliefs of our management. Any statements contained in this annual report that are not historical facts are forward-looking statements as defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. We have based these forward-looking statements on our current expectations and projections about future events, including: future operating or financial results; pending acquisitions and dispositions, business strategies and expected capital spending; operating expenses, availability of crew, number of off-hire days, drydocking requirements and insurance costs; general market conditions and container and drybulk shipping market trends, including charter rates, vessel values and factors affecting supply and demand; our financial condition and liquidity, including our ability to comply with covenants in our financing arrangements and to service or refinance our outstanding indebtedness; performance by our charterers of their obligations; the availability of ships to purchase, the time that it may take to construct new ships, or the useful lives of our ships; our ability to obtain financing in the future to fund our contracted newbuildings, additional vessel acquisitions and other general corporate activities; our continued ability to enter into multi-year, fixed-rate period charters with our customers; our ability to operate profitably in the drybulk sector; our ability to leverage to our advantage the relationships and reputation of our manager, Danaos Shipping Company Limited (the "Manager" or "Danaos Shipping"), in the containership and drybulk shipping sectors of the international shipping industry; the impact of the war in Ukraine and related sanctions, the conflict in Israel and the Gaza Strip, potential disruption of shipping route

Identity of Directors, Senior Management and Advisers

Item 1. Identity of Directors, Senior Management and Advisers Not Applicable.

Offer Statistics and Expected Timetable

Item 2. Offer Statistics and Expected Timetable Not Applicable.

Key Information

Item 3. Key Information Capitalization and Indebtedness The table below sets forth our consolidated capitalization as of December 31, 2023 on an actual and on an as adjusted basis, as there have been no material changes to our capitalization from debt or equity issuances, re-capitalizations, special dividends, or debt repayments in the table below between January 1, 2024 and February 28, 2024. As of December 31, 2023 Actual As Adjusted (US Dollars in thousands) Capitalization Debt: Senior unsecured notes $ 262,766 $ 262,766 BNP Paribas/Credit Agricole $130 mil. Facility 100,000 100,000 Alpha Bank $55.25 mil. Facility 47,750 47,750 Citibank $382.5 mil. Revolving Credit Facility — — Total debt (1) (2) $ 410,516 $ 410,516 Stockholders' equity: Preferred stock, par value $0.01 per share; 100,000,000 preferred shares authorized and none issued; actual and as adjusted — — Common stock, par value $0.01 per share; 750,000,000 shares authorized; 25,355,962 shares issued and 19,418,696 shares outstanding; actual and as adjusted 194 194 Additional paid-in capital 690,190 690,190 Accumulated other comprehensive loss (75,979) (75,979) Retained earnings (3) 2,401,912 2,401,912 Total stockholders' equity 3,016,317 3,016,317 Total capitalization $ 3,426,833 $ 3,426,833 (1) All of the indebtedness reflected in the table, other than Danaos Corporation's unsecured senior notes due 2028 ($262.8 million on an actual basis), is secured and is guaranteed by Danaos Corporation, in the case of indebtedness of our subsidiaries ($47.75 3 Table of Contents million on an actual basis), or by our subsidiaries, in the case of indebtedness of Danaos Corporation ($100.0 million on an actual basis). See Note 10 "Long-Term Debt, net" to our consolidated financial statements included elsewhere in this report. (2) Total debt is presented gross of deferred finance costs, which amounted to $6.3 million. (3) Doe

RISK FACTORS

RISK FACTORS Risk Factor Summary An investment in our common stock is subject to a number of risks. The following summarizes some, but not all, of these risks. Please carefully consider all of the information discussed in "Item 3. Key Information— Risk Factors" in this annual report for a more thorough description of these and other risks. Risks Inherent in Our Business Our profitability and growth depend on the demand for containerships and drybulk vessels and global economic conditions, and charter rates for containerships and drybulk vessels may experience volatility or continue to decline. The volatile container and drybulk shipping markets and difficulty finding profitable charters for our vessels. The international containership sector and drybulk sector, which we entered in 2023, are highly competitive, and we may be unable to compete successfully for charters with established companies or new entrants that may have greater resources and access to capital. The failure of our counterparties to meet their obligations under our charter agreements. The loss of one of the limited number of customers that account for a large part of our revenues. Global economic conditions, and the impact on consumer confidence and consumer spending and the demand for drybulk commodities. Disruptions in world financial markets and the resulting governmental action could have a material adverse impact on our results of operations, financial condition and cash flows. A decrease in the level of export of goods or an increase in trade protectionism globally could have a material adverse impact on our charterers' business and could cause a material adverse impact on our business, financial condition, results of operations and cash flows. Our profitability and growth depends on our ability to expand relationships with existing charterers and to obtain new time charters, for which we will face substantial competition. Containership and drybulk vessel values may fluctuate s

View Full Filing

View this 20-F filing on SEC EDGAR