Business Context and Reporting Period
This Form 6-K filing by Danaos Corporation covers the month of November 2007. The Company is an international owner of containerships, operating a fleet of 36 vessels (147,472 TEUs) and ranking among the ten largest containership charter owners globally. The Company's strategy involves multi-year, fixed-rate time charters with major liner companies. Additionally, the Company has contracted to acquire 32 newbuilding containerships (217,421 TEUs) with deliveries scheduled through 2011.
Key Financial Metrics and Fleet Status
- Fleet Composition: 32 containerships on time charters and 4 on bareboat charters.
- Asset Sale: The charterer APL-NOL exercised an option to purchase the vessel APL Belgium for $44.0 million upon charter expiration in January 2008.
- Discontinued Operations: The Company sold its remaining six drybulk vessels for an aggregate of $143.5 million during the nine months ended September 30, 2007.
- Financial Data: This specific filing does not provide current period revenue, profit, cash flow, or debt figures. It serves to recast prior financial statements to reflect the drybulk business as discontinued operations.
Material Changes and Recasting
The primary material change reported is the recasting of the Company's previously issued annual financial statements for the year ended December 31, 2006, and selected financial data for the five years ended December 31, 2006. The drybulk business is now presented as discontinued operations in accordance with FASB Statement No. 144. The filing explicitly states that this recasting has no effect on the Company's reported net income for any reporting period.
Outlook, Risks, and Management Commentary
- Future Strategy: The Company may reinvest in the drybulk sector in the future, subject to market conditions and the availability of suitable vessels.
- Management Structure: Operations are supervised by the CEO, COO, and CFO in conjunction with the board, with technical and administrative services provided by Danaos Shipping Co. Ltd. under a management agreement expiring December 31, 2008, with automatic renewal options.
- Ownership: The Coustas Family Trust remains the largest stockholder.
- Data Limitation: The recast financial statements included as Exhibit 99.1 have not been updated to reflect developments since the Annual Report filing on May 30, 2007.
Investor Verification Checklist
- Verify the details of the $44.0 million sale of the APL Belgium scheduled for January 2008.
- Review Exhibit 99.1 for the full recast financial statements reflecting discontinued operations.
- Confirm the status of the 32 contracted newbuilding vessels and their delivery schedules through 2011.
- Monitor future announcements regarding potential reinvestment in the drybulk sector.