Document and Entity Information |
6 Months Ended |
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Document and Entity Information | |
Entity Registrant Name | DANAOS CORPORATION |
Entity Central Index Key | 0001369241 |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands |
Jun. 30, 2020
USD ($)
$ / shares
shares
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Dec. 31, 2019
USD ($)
$ / shares
shares
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CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accumulated depreciation | $ | $ 890,269 | $ 840,429 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 24,789,312 | 24,789,312 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) | ||||
OPERATING REVENUES | $ 116,824 | $ 112,319 | $ 223,020 | $ 225,210 |
OPERATING EXPENSES | ||||
Voyage expenses | (3,289) | (2,732) | (7,335) | (6,002) |
Vessel operating expenses | (28,568) | (27,306) | (54,570) | (53,177) |
Depreciation | (25,258) | (24,039) | (49,839) | (47,805) |
Amortization of deferred drydocking and special survey costs | (2,941) | (2,063) | (5,251) | (4,254) |
General and administrative expenses | (6,013) | (6,492) | (11,853) | (13,361) |
Income From Operations | 50,755 | 49,687 | 94,172 | 100,611 |
OTHER INCOME (EXPENSES): | ||||
Interest income | 1,588 | 1,569 | 3,302 | 3,165 |
Interest expense | (13,645) | (18,844) | (29,958) | (36,687) |
Other finance expenses | (1,038) | (1,770) | (1,660) | (2,094) |
Equity income/(loss) on investments | 1,720 | 32 | 3,265 | (52) |
Other income, net | 19 | 367 | 270 | 434 |
Loss on derivatives | (903) | (903) | (1,806) | (1,796) |
Total Other Expenses, net | (12,259) | (19,549) | (26,587) | (37,030) |
Net Income | $ 38,496 | $ 30,138 | $ 67,585 | $ 63,581 |
EARNINGS PER SHARE | ||||
Basic earnings per share | $ 1.57 | $ 2.02 | $ 2.75 | $ 4.26 |
Diluted earnings per share | $ 1.55 | $ 1.97 | $ 2.73 | $ 4.16 |
Basic weighted average number of common shares (in thousands) | 24,573 | 14,939 | 24,573 | 14,939 |
Diluted weighted average number of common shares (in thousands) | 24,789 | 15,314 | 24,789 | 15,276 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (unaudited) | ||||
Net income for the period | $ 38,496 | $ 30,138 | $ 67,585 | $ 63,581 |
Other comprehensive income/(loss): | ||||
Unrealized gain/(loss) on available for sale securities | 6,467 | (2,021) | (1,865) | (2,626) |
Amortization of deferred realized losses on cash flow hedges | 903 | 903 | 1,806 | 1,796 |
Total Other Comprehensive Income/(Loss) | 7,370 | (1,118) | (59) | (830) |
Comprehensive Income | $ 45,866 | $ 29,020 | $ 67,526 | $ 62,751 |
Basis of Presentation and General Information |
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Basis of Presentation and General Information | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and General Information | 1 Basis of Presentation and General Information
The accompanying condensed consolidated financial statements (unaudited) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The reporting and functional currency of the Company is the United States Dollar.
Danaos Corporation (“Danaos” or “Company”), formerly Danaos Holdings Limited, was formed on December 7, 1998 under the laws of Liberia and is presently the sole owner of all outstanding shares of the companies listed below. Danaos Holdings Limited was redomiciled in the Marshall Islands on October 7, 2005. In connection with the redomiciliation, the Company changed its name to Danaos Corporation. On October 14, 2005, the Company filed and the Marshall Islands accepted Amended and Restated Articles of Incorporation. The authorized capital stock of Danaos Corporation is 750,000,000 shares of common stock with a par value of $0.01 and 100,000,000 shares of preferred stock with a par value of $0.01. Refer to Note 11, “Stockholders’ Equity”. The Company’s principal business is the acquisition and operation of vessels. Danaos conducts its operations through the vessel owning companies whose principal activity is the ownership and operation of containerships that are under the exclusive management of a related party of the Company.
In the opinion of management, the accompanying condensed consolidated financial statements (unaudited) of Danaos and subsidiaries contain all adjustments necessary to present fairly, in all material respects, the Company’s condensed consolidated financial position as of June 30, 2020, the condensed consolidated results of operations for the three and six months ended June 30, 2020 and 2019 and the condensed consolidated cash flows for the six months ended June 30, 2020 and 2019. All such adjustments are deemed to be of a normal, recurring nature. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in Danaos’ Annual Report on Form 20-F for the year ended December 31, 2019. The results of operations for the three and six months ended June 30, 2020, are not necessarily indicative of the results to be expected for the full year. The year-end condensed consolidated balance sheet data was derived from annual financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.
The accompanying condensed consolidated financial statements (unaudited) represent the consolidation of the accounts of the Company and its wholly owned subsidiaries. The subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are de-consolidated from the date that control ceases. Inter-company transaction balances and unrealized gains on transactions between the companies are eliminated.
The Company also consolidates entities that are determined to be variable interest entities, of which the Company is the primary beneficiary, as defined in the authoritative guidance under U.S. GAAP. A variable interest entity is defined as a legal entity where either (a) equity interest holders as a group lack the characteristics of a controlling financial interest, including decision making ability and an interest in the entity’s residual risks and rewards, or (b) the equity holders have not provided sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support, or (c) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. The condensed consolidated financial statements (unaudited) have been prepared to reflect the consolidation of the companies listed below. The historical balance sheets and results of operations of the companies listed below have been reflected in the condensed consolidated balance sheets and condensed consolidated statements of income, cash flows and stockholders’ equity at and for each period since their respective incorporation dates. The consolidated companies are referred to as “Danaos,” or “the Company.”
As of June 30, 2020, Danaos included the vessel owning companies (the “Danaos Subsidiaries”) listed below. All vessels are container vessels:
Impact of COVID-19 on the Company's Business
The spread of the COVID-19 virus, which has been declared a pandemic by the World Health Organization, in 2020 has caused substantial disruptions in the global economy and the shipping industry, as well as significant volatility in the financial markets, the severity and duration of which remains uncertain.
The impact of the COVID-19 pandemic continues to unfold and may continue to have negative effect on the Company's business, financial performance and the results of its operations, including due to decreased demand for global seaborne container trade and containership charter rates, the extent of which will depend largely on future developments. As a result, many of the Company's estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, the Company's estimates may change in future periods.
The Company has evaluated the impact of current economic situation on the recoverability of the carrying amount of its vessels. As of June 30, 2020, the Company concluded that events and circumstances triggered the existence of potential impairment of its vessels. These indicators included volatility in the charter market as well as the potential impact the current marketplace may have on the future operations. As a result, the Company performed step one of the impairment assessment of the Company's vessels by comparing the undiscounted projected net operating cash flows for each vessel to its carrying values. As of June 30, 2020, the Company's assessment concluded that step two of the impairment analysis was not required for any vessel, as the undiscounted projected net operating cash flows of the Company's vessels exceeded the carrying value of the respective vessels. As of June 30, 2020, no vessel impairment loss was identified. |
Significant Accounting Policies |
6 Months Ended |
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Jun. 30, 2020 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2 Significant Accounting Policies
For a detailed discussion about the Company’s significant accounting policies, see Note 2 “Significant Accounting Policies” in the Company’s consolidated financial statements included in the Annual Report on Form 20-F for the year ended December 31, 2019 filed with the Securities and Exchange Commission on February 27, 2020. During the six months ended June 30, 2020, other than the following, there were no other significant changes made to the Company’s significant accounting policies:
Newly Implemented Accounting Principles:
We adopted Topic 326 "Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments" on January 1, 2020. This standard provides new guidance for measuring and recognizing credit losses on financial instruments using the modified retrospective approach with a cumulative effect adjustment to opening retained earnings recorded at the beginning of the period of adoption. The standard applies to the allowance for uncollectible debt securities in the Company's books, but did not result in any significant changes to the allowance methodology and did not have a material impact on the Company's unaudited condensed consolidated financial statements.
Recent Accounting Pronouncements:
In March 2020, the FASB issued ASU 2020-4, "Reference Rate Reform (Topic 848)" ("ASU 2020-4"), which provides optional guidance intended to ease the potential burden in accounting for the expected discontinuation of LIBOR as a reference rate in the financial markets. The guidance can be applied to modifications made to certain contracts to replace LIBOR with a new reference rate. The guidance, if elected, will permit entities to treat such modifications as the continuation of the original contract, without any required accounting reassessments or remeasurements. The ASU 2020-4 was effective for the Company beginning on March 12, 2020 and the Company will apply the amendments prospectively through December 31, 2022. There was no impact to the Company's unaudited condensed consolidation financial statements for the six months ended June 30, 2020 as a result of adopting this standard update. Currently, the Company has various contracts that reference LIBOR and is assessing how this standard may be applied to specific contract modifications.
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Fixed Assets, Net |
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Fixed Assets, Net | 3 Fixed assets, net
The Company took delivery of the following vessels in the six months ended June 30, 2020:
In the six months ended June 30, 2020, the Company installed scrubbers on nine of its vessels with total costs of $39.7 million. The residual value (estimated scrap value at the end of the vessels’ useful lives) of the fleet was estimated at $408.4 million and $378.2 million as of June 30, 2020 and as of December 31, 2019, respectively. The Company has calculated the residual value of the vessels taking into consideration the 10 year average and the 5 year average of the scrap. The Company has applied uniformly the scrap value of $300 per ton for all vessels. The Company believes that $300 per ton is a reasonable estimate of future scrap prices, taking into consideration the cyclicality of the nature of future demand for scrap steel. Although the Company believes that the assumptions used to determine the scrap rate are reasonable and appropriate, such assumptions are highly subjective, in part, because of the cyclical nature of future demand for scrap steel.
On May 12, 2020, the Company refinanced the existing leaseback obligation related to the vessels Hyundai Honour and Hyundai Respect with a new sale and leaseback arrangement amounting to $139.1 million with a four years term, at the end of which the Company will reacquire these vessels for an aggregate amount of $36.0 million or earlier, at the Company’s option, for a purchase price set forth in the agreement. The Company incurred early termination fees amounting to $0.5 million, which are presented under “Other finance expenses” in the condensed consolidated statements of income. This new arrangement was recorded as a failed sale and leaseback by the Company with the net proceeds received recognized as a financial liability. The carrying value of these vessels amount to $277.0 million as of June 30, 2020.
The scheduled leaseback instalments subsequent to June 30, 2020 are as follows (in thousands):
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Deferred Charges, Net |
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Deferred Charges, Net | 4 Deferred Charges, net
Deferred charges, net consisted of the following (in thousands):
The Company follows the deferral method of accounting for drydocking and special survey costs in accordance with accounting for planned major maintenance activities, whereby actual costs incurred are deferred and amortized on a straight-line basis over the period until the next scheduled survey, which is two and a half years. If special survey or drydocking is performed prior to the scheduled date, the remaining unamortized balances are immediately written off. Furthermore, when a vessel is drydocked for more than one reporting period, the respective costs are identified and recorded in the period in which they were incurred and not at the conclusion of the drydocking. |
Investments in affiliates |
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Investments in affiliates | 5 Investments in affiliates
In August 2015, an affiliated company Gemini Shipholdings Corporation (“Gemini”) was formed by the Company and Virage International Ltd. (“Virage”), a company controlled by the Company’s largest shareholder. Gemini acquired a 100% interest in entities with capital leases for the Suez Canal and Genoa and that own the container vessels Catherine C and Leo C. In August 2019, an affiliated company of Gemini acquired an 8,533 TEU container vessel built in 2006 renamed to Belita. Gemini financed these acquisitions with the assumption of capital lease obligations of $35.4 million, $30.0 million of borrowings under secured loan facilities and an aggregate of $47.4 million from equity contributions from the Company and Virage, which subscribed in cash for 49% and 51%, respectively, of Gemini’s issued and outstanding share capital. As of June 30, 2020, Gemini consolidated its wholly owned subsidiaries listed below:
The Company has determined that Gemini is a variable interest entity of which the Company is not the primary beneficiary, and as such, this affiliated company is accounted for under the equity method and recorded under “Equity income/(loss) on investments” in the condensed consolidated statements of income. The Company does not guarantee the debt of Gemini and its subsidiaries and has the right to purchase all of the beneficial interest in Gemini that it does not own for fair market value at any time after December 31, 2018, to the extent permitted under its credit facilities, provided that such fair market value is not below the net book value of such equity interests. The net assets of Gemini total $25.0 million and $18.3 million as of June 30, 2020 and December 31, 2019, respectively. The Company’s exposure is limited to its share of the net assets of Gemini proportionate to its 49% equity interest in Gemini.
A condensed summary of the financial information for equity accounted investments 49% owned by the Company shown on a 100% basis are as follows (in thousands):
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Other Non-current Assets |
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Other Non-current Assets | 6 Other Non-current Assets
Other non-current assets consisted of the following (in thousands):
Equity participation in ZIM and interest bearing unsecured ZIM notes maturing in 2023, which consist of $8.8 million Series 1 Notes and $41.1 million of Series 2 Notes, were obtained after the charter restructuring agreements with ZIM in July 2014. Interest bearing senior unsecured HMM notes consist of $32.8 million Loan Notes 1 maturing in July 2024 and $6.2 million Loan Notes 2 maturing in December 2022, which were obtained after the charter restructuring agreements with HMM in July 2016. See Note 7 “Other Non-current Assets” to the consolidated financial statements in the Annual Report on Form 20-F for the year ended December 31, 2019 for further details.
ZIM and HMM unsecured debt securities are not publicly traded, are infrequently traded over the counter by certain brokers and have no readily determinable market value or credit ratings. The unrealized loss was primarily caused by challenging business environment faced by container shipping industry, which affected profitability and liquidity of ZIM and HMM. Credit spreads of debt securities issued by shipping companies, including ZIM and HMM increased due to impact the COVID-19 pandemic on near-term profit and liquidity forecasts of liner companies by the industry analysts. The Company collects cash interest applicable to ZIM securities and rentals on the Company's vessels leased to ZIM and HMM on a regular basis, in accordance with the contractual agreements. The contractual terms of ZIM and HMM debt securities do not permit ZIM or HMM to settle the debt securities at a price less than the amortized cost basis on the investments. The Company currently does not expect ZIM or HMM to settle the debt securities at a price less than the amortized cost basis of the investments. The Company does not intend to sell ZIM and HMM debt securities and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis. These securities are in continuous unrealized loss position for a period exceeding twelve months as of June 30, 2020 and December 31, 2019.
The following tables summarizes the unrealized positions for available-for-sale debt securities as of June 30, 2020 and December 31, 2019 (in thousands):
The unrealized losses, which were recognized in other comprehensive loss, are analyzed as follows as of June 30, 2020 (in thousands):
Other assets mainly include non-current assets related to straight-lining of the Company’s revenue amounting to $24.8 million and $29.6 million as of June 30, 2020 and December 31, 2019, respectively. |
Accrued Liabilities |
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Accrued Liabilities | 7 Accrued Liabilities
Accrued liabilities consisted of the following (in thousands):
Accrued expenses mainly consisted of accruals related to the operation of the Company’s fleet and vessel additions as of June 30, 2020 and December 31, 2019. |
Long-Term Debt, net |
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Long-Term Debt, net | 8 Long-Term Debt, net
Long-term debt, net consisted of the following (in thousands):
On April 8, 2020, the vessel owning companies Rewarding International Shipping Inc. and Blackwell Seaways Inc. entered into a loan agreement with Macquarie Bank, which is guaranteed by Danaos, for an amount up to $24 million drawn down in full on April 9, 2020. The loan was used to partially finance the acquisition costs of two newly acquired vessels Niledutch Lion and Phoebe owned by these vessel owning companies, liens on which vessels secure this loan agreement. The loan bears interest at LIBOR plus 3.9% margin and is repayable in nineteen quarterly instalments starting from September 30, 2020 over a five year period of the loan with a balloon payment at maturity amounting to $10.4 million.
Each of the credit facilities is collateralized by first and second preferred mortgages over the vessels financed, general assignment of all hire freights, income and earnings, the assignment of their insurance policies, as well as any proceeds from the sale of mortgaged vessels, and in the case of the credit facilities entered into in 2018 the Company’s investments in ZIM and Hyundai Merchant Marine securities, and stock pledges and benefits from corporate guarantees. As of June 30, 2020, fifty-five of the Company's vessels, excluding the SM Charleston, Hyundai Honour and Hyundai Respect, having a net carrying value of $2,165.9 million, were subject to first and second preferred mortgages as collateral to the Company's credit facilities. As of June 30, 2020, there was no remaining borrowing availability under the Company’s credit facilities. The Company was in compliance with the financial covenants of the credit facilities as of June 30, 2020 and December 31, 2019. Unpaid loan amendment fees of $7.4 million and $14.8 million are accrued under "Other current liabilities" as of June 30, 2020 and December 31, 2019, respectively.
The Sinosure–Cexim–Citibank–ABN Amro Credit Facility provides for semi-annual amortization payments and the 2018 Credit Facilities provide for quarterly fixed and variable amortization payments, together representing approximately 85% of actual free cash flows from the relevant vessels securing such credit facilities, subject to certain adjustments. The 2018 Credit Facilities have maturity dates of December 31, 2023 (or in some cases June 30, 2024). The scheduled debt maturities of total long-term debt subsequent to June 30, 2020 are as follows (in thousands):
* The final payments include the unamortized remaining principal debt balances under the 2018 Credit Facilities, as such amount will be determinable following the fixed amortization. As mentioned above, the Company is also subject to quarterly variable principal amortization based on actual free cash flows, which are included under “Final payments” in this table.
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Financial Instruments |
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Financial Instruments | 9 Financial Instruments
The principal financial assets of the Company consist of cash and cash equivalents and trade receivables and other assets. The principal financial liabilities of the Company consist of long-term bank loans. The following is a summary of the Company’s risk management strategies and the effect of these strategies on the Company’s condensed consolidated financial statements.
Interest Rate Risk: Interest rate risk arises on bank borrowings. The Company monitors the interest rate on borrowings closely to ensure that the borrowings are maintained at favorable rates.
Concentration of Credit Risk: Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and trade accounts receivable. The Company places its temporary cash investments, consisting mostly of deposits, with established financial institutions. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company’s investment strategy. The Company is exposed to credit risk in the event of non-performance by counterparties, however, the Company limits this exposure by diversifying among counterparties with high credit ratings. The Company depends upon a limited number of customers for a large part of its revenues. Credit risk with respect to trade accounts receivable is generally managed by the selection of customers among the major liner companies in the world and their dispersion across many geographic areas.
Fair Value: The carrying amounts reflected in the accompanying condensed consolidated balance sheets of financial assets and liabilities (excluding long-term bank loans and certain other non-current assets) approximate their respective fair values due to the short maturity of these instruments. The fair values of long-term floating rate bank loans approximate the recorded values, generally due to their variable interest rates. The fair value of available for sale securities is estimated based on either observable market based inputs or unobservable inputs that are corroborated by market data. The Company is exposed to changes in fair value of available for sale securities as there is no hedging strategy.
a. Interest Rate Swap Hedges
The Company currently has no outstanding interest rate swaps agreements. However, in the past years, the Company entered into interest rate swap agreements with its lenders in order to manage its floating rate exposure. Certain variable-rate interests on specific borrowings were associated with vessels under construction and were capitalized as a cost of the specific vessels. In accordance with the accounting guidance on derivatives and hedging, the amounts related to realized gains or losses on cash flow hedges that have been entered into and qualified for hedge accounting, in order to hedge the variability of that interest, were recognized in accumulated other comprehensive loss and are reclassified into earnings over the depreciable life of the constructed asset, since that depreciable life coincides with the amortization period for the capitalized interest cost on the debt. An amount of $1.8 million was reclassified into earnings for the six months ended June 30, 2020 and 2019, representing its amortization over the depreciable life of the vessels. An amount of $3.6 million is expected to be reclassified into earnings within the next 12 months.
b. Fair Value of Financial Instruments
The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value.
Level I: Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Valuation of these items does not entail a significant amount of judgment.
Level II: Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date.
Level III: Inputs that are unobservable. The Company did not use any Level 3 inputs as of June 30, 2020 and December 31, 2019.
The estimated fair values of the Company’s financial instruments are as follows:
The estimated fair value of the financial instruments that are measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of June 30, 2020:
The estimated fair value of the financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of June 30, 2020:
The estimated fair value of the financial instruments that are measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2019:
The estimated fair value of the financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2019:
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10 Commitments and Contingencies
There are no material legal proceedings to which the Company is a party or to which any of its properties are the subject, or other contingencies that the Company is aware of, other than routine litigation incidental to the Company’s business. Furthermore, the Company does not have any commitments outstanding.
See the Note 3 "Fixed Assets, Net" for buyback obligation related to the sale and leaseback arrangement. |
Stockholders' Equity |
6 Months Ended |
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Jun. 30, 2020 | |
Stockholders' Equity | |
Stockholders' Equity | 11 Stockholders’ Equity
In December 2019, the Company completed the sale of 9,418,080 shares of common stock in the public offering raising aggregate proceeds net of underwriting discounts of $54.4 million, including an investment of approximately $17.3 million by DIL. Additionally the Company incurred approximately $0.9 million of related share issuance costs.
On May 2, 2019, the Company effected a 1-for-14 reverse stock split of the issued and outstanding shares of common stock of the Company. All share and per share data disclosed in the accompanying consolidated financial statements give effect to this reverse stock split retroactively, for all periods presented. The reverse stock split reduced the number of the Company's outstanding shares of common stock from 213,324,455 to 15,237,456 on May 2, 2019 and affected all issued and outstanding shares of common stock. No fractional shares were issued in connection to the reverse stock split. Stockholders who would otherwise hold a fractional share of the Company's common stock received a cash payment in lieu of such fractional share. The par value and other terms of the Company's common stock were not affected by the reverse stock split. The Company's largest stockholder, Danaos Investment Limited ("DIL"), contributed $10 million to the Company in connection with the consummation of the Company’s debt refinancing on August 10, 2018. DIL did not receive any shares of common stock or other interests in the Company as a result of this contribution.
Additionally, on August 10, 2018, in connection with this debt refinancing, the Company issued 7,095,877 new shares of common stock to certain of the Company's lenders, which represented 47.5% of the outstanding common stock immediately after this issuance.
As of April 18, 2008, the Board of Directors and the Compensation Committee approved incentive compensation of Manager’s employees with its shares from time to time, after specific for each such time, decision by the compensation committee and the Board of Directors in order to provide a means of compensation in the form of free shares to certain employees of the Manager of the Company’s common stock. The plan was effective as of December 31, 2008. Pursuant to the terms of the plan, employees of the Manager may receive (from time to time) shares of the Company’s common stock as additional compensation for their services offered during the preceding period. The total amount of stock to be granted to employees of the Manager will be at the Company’s Board of Directors’ discretion only and there will be no contractual obligation for any stock to be granted as part of the employees’ compensation package in future periods. During the six months ended June 30, 2020, the Company did not grant any shares under the plan. During the six months ended June 30, 2020, no new shares were issued.
The Company has also established the Directors Share Payment Plan under its 2006 equity compensation plan. The purpose of the plan is to provide a means of payment of all or a portion of compensation payable to directors of the Company in the form of Company’s Common Stock. The plan was effective as of April 18, 2008. Each member of the Board of Directors of the Company may participate in the plan. Pursuant to the terms of the plan, directors may elect to receive in Common Stock all or a portion of their compensation. Following December 31 of each year, the Company delivers to each Director the number of shares represented by the rights credited to their Share Payment Account during the preceding calendar year. During the six months ended June 30, 2020 and June 30, 2019, none of the directors elected to receive their compensation in Company shares.
On September 14, 2018, the Company granted 298,774 shares of restricted stock to executive officers of the Company, out of which 149,386 restricted shares vested on December 31, 2019 and 149,388 restricted shares are scheduled to vest on December 31, 2021. Additionally, on May 10, 2019, the Company granted 137,944 shares of restricted stock to certain employees of the Manager (including 35,714 shares to executive officers), out of which 4,168 shares were forfeited in 2019 and 66,888 restricted shares vested on December 31, 2019 and 66,888 restricted shares are scheduled to vest on December 31, 2021. These restricted shares are subject to satisfaction of the vesting terms, under the Company’s 2006 Equity Compensation Plan, as amended. 216,276 shares of restricted stock are issued and outstanding as of June 30, 2020 and December 31, 2019, respectively.
The Company was not permitted to pay cash dividends under the terms of the 2018 debt refinancing until (1) the Company receives in excess of $50 million in net cash proceeds from offerings of Common Stock and (2) the payment in full of the first installment of amortization payable following the consummation of the debt refinancing under each new credit facility and provided that an event of default has not occurred and the Company is not, and after giving effect to the payment of the dividend, in breach of any covenant. Following the sale of shares of common stock in the public offering completed in December 2019 described above, these conditions are fully satisfied and the Company will be permitted under its credit facilities to pay dividends provided no event of default has occurred or would occur as a result of the payment of such dividend, and it remains in compliance with the financial and other covenants thereunder. To the extent the Company's credit facilities permit it to pay dividends, any dividend payments will be subject to the Company having sufficient available excess cash and distributable reserves, the provisions of Marshall Islands law affecting the payment of distributions to stockholders and the discretion of the Company's board of directors. |
Lease Arrangements |
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Lease Arrangements | |||||||||||||||||||||||||||||||||
Lease Arrangements | 12 Lease Arrangements
Charters-out
As of June 30, 2020, the Company generated operating revenues from its 58 vessels on time charters or bareboat charter agreements, with remaining terms ranging from less than one year to April 2028. Under the terms of the charter party agreements, most charterers have options to extend the duration of contracts ranging from less than one year to three years after the expiration of the contract. The Company determines fair value of its vessels at the lease commencement date and at the end of lease term for lease classification with the assistance from valuations obtained by third party independent shipbrokers. The Company manages its risk associated with the residual value of its vessels after the expiration of the charter party agreements by seeking multi-year charter arrangements for its vessels.
The future minimum rentals, expected to be earned on non-cancellable time charters and bareboat charters classified as operating leases consisted of the following as of June 30, 2020 (in thousands):
Rentals from time charters are not generally received when a vessel is off-hire, including time required for normal periodic maintenance of the vessel. In arriving at the future minimum rentals, an estimated time off-hire to perform periodic maintenance on each vessel has been deducted, although there is no assurance that such estimate will be reflective of the actual off-hire in the future. |
Earnings per Share |
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Earnings per Share | 13 Earnings per Share
The following table sets forth the computation of basic and diluted earnings per share:
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Related Party Transactions |
6 Months Ended |
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Jun. 30, 2020 | |
Related Party Transactions | |
Related Party Transactions | 14 Related Party Transactions
Management fees to Danaos Shipping Company Limited ("the Manager") amounted to $8.6 million and $8.3 million in the six months ended June 30, 2020 and 2019, respectively, and are presented under "General and administrative expenses" in the condensed consolidated statements of income.
Commissions to the Manager amounted to $2.7 million in the six months ended June 30, 2020 and 2019, respectively, and are presented under “Voyage expenses” in the condensed consolidated statements of income. Commission of 0.5% on the contract price of the newly acquired vessels amounting to $0.4 million was capitalized to the vessel cost in the six months ended June 30, 2020.
The balance “Due from related parties” in the condensed consolidated balance sheets totaling $22.4 million and $20.5 million as of June 30, 2020 and December 31, 2019, respectively, represents advances to the Manager on account of the vessels’ operating and other expenses. An amount of $0.4 million and $0.2 million as of June 30, 2020 and December 31, 2019, respectively, was due to executive officers and is presented under “Accounts payable” in the condensed consolidated balance sheets. |
Subsequent Events |
6 Months Ended |
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Jun. 30, 2020 | |
Subsequent Events | |
Subsequent Events | 15 Subsequent Events
On July 2, 2020, the Company's subsidiary Oceancarrier (No.1) Corp. drew down a loan with SinoPac, which is guaranteed by Danaos, for an amount of $13.3 million. The loan was used to partially finance the acquisition costs of the newly acquired vessel SM Charleston owned by this vessel owning company, a lien on which vessel secures this loan agreement. The loan bears interest at LIBOR plus 3.75% margin and is repayable in nineteen quarterly instalments starting from October 2, 2020 over a five year period of the loan with a balloon payment at maturity amounting to $3.8 million.
On August 3, 2020, the Company announced that its Board of Directors had approved a common share repurchase program of up to $10 million. |
Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Significant Accounting Policies | |
Newly Implemented Accounting Policies | Newly Implemented Accounting Principles:
We adopted Topic 326 "Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments" on January 1, 2020. This standard provides new guidance for measuring and recognizing credit losses on financial instruments using the modified retrospective approach with a cumulative effect adjustment to opening retained earnings recorded at the beginning of the period of adoption. The standard applies to the allowance for uncollectible debt securities in the Company's books, but did not result in any significant changes to the allowance methodology and did not have a material impact on the Company's unaudited condensed consolidated financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements:
In March 2020, the FASB issued ASU 2020-4, "Reference Rate Reform (Topic 848)" ("ASU 2020-4"), which provides optional guidance intended to ease the potential burden in accounting for the expected discontinuation of LIBOR as a reference rate in the financial markets. The guidance can be applied to modifications made to certain contracts to replace LIBOR with a new reference rate. The guidance, if elected, will permit entities to treat such modifications as the continuation of the original contract, without any required accounting reassessments or remeasurements. The ASU 2020-4 was effective for the Company beginning on March 12, 2020 and the Company will apply the amendments prospectively through December 31, 2022. There was no impact to the Company's unaudited condensed consolidation financial statements for the six months ended June 30, 2020 as a result of adopting this standard update. Currently, the Company has various contracts that reference LIBOR and is assessing how this standard may be applied to specific contract modifications. |
Basis of Presentation and General Information (Tables) |
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Schedule of the vessel owning companies (the "Danaos Subsidiaries") | As of June 30, 2020, Danaos included the vessel owning companies (the “Danaos Subsidiaries”) listed below. All vessels are container vessels:
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Fixed Assets, Net (Tables) |
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Assets, Net | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of vessels acquired |
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Schedule of leaseback instalments | The scheduled leaseback instalments subsequent to June 30, 2020 are as follows (in thousands):
|
Deferred Charges, Net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Deferred Charges, Net | |||||||||||||||||||||||||||||||||||||||||
Schedule of deferred charges, net | Deferred charges, net consisted of the following (in thousands):
|
Investments in affiliates (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in affiliates | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated wholly owned subsidiaries | As of June 30, 2020, Gemini consolidated its wholly owned subsidiaries listed below:
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Summary of the financial information for equity accounted investments | A condensed summary of the financial information for equity accounted investments 49% owned by the Company shown on a 100% basis are as follows (in thousands):
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Other Non-current Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Non-current Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other non-current assets | Other non-current assets consisted of the following (in thousands):
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Schedule of available for sale securities at fair value and unrealized losses | The following tables summarizes the unrealized positions for available-for-sale debt securities as of June 30, 2020 and December 31, 2019 (in thousands):
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Schedule of unrealized loss on available for sale securities | The unrealized losses, which were recognized in other comprehensive loss, are analyzed as follows as of June 30, 2020 (in thousands):
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Accrued Liabilities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accrued liabilities | Accrued liabilities consisted of the following (in thousands):
|
Long-Term Debt, net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt, net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt, net | Long-term debt, net consisted of the following (in thousands):
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Schedule of debt maturities of long-term debt | The scheduled debt maturities of total long-term debt subsequent to June 30, 2020 are as follows (in thousands):
* The final payments include the unamortized remaining principal debt balances under the 2018 Credit Facilities, as such amount will be determinable following the fixed amortization. As mentioned above, the Company is also subject to quarterly variable principal amortization based on actual free cash flows, which are included under “Final payments” in this table. |
Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated fair values of the financial instruments |
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Schedule of estimated fair value of the financial instruments, categorized based upon the fair value hierarchy | The estimated fair value of the financial instruments that are measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of June 30, 2020:
The estimated fair value of the financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of June 30, 2020:
The estimated fair value of the financial instruments that are measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2019:
The estimated fair value of the financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2019:
|
Lease Arrangements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||
Lease Arrangements | |||||||||||||||||||||||||||||||||
Schedule of future minimum rentals, expected to be earned on non cancellable time charters | The future minimum rentals, expected to be earned on non-cancellable time charters and bareboat charters classified as operating leases consisted of the following as of June 30, 2020 (in thousands):
|
Earnings per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share:
|
Deferred Charges, Net (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
Changes in deferred charges, net | ||
Balance at the beginning of the period | $ 11,455 | $ 13,031 |
Additions | 13,380 | 7,157 |
Amortization | (5,251) | (8,733) |
Balance at the end of the period | $ 19,584 | $ 11,455 |
Period of amortization for deferred costs | 2 years 6 months |
Investments in affiliates (Details) $ in Millions |
1 Months Ended | ||
---|---|---|---|
Aug. 31, 2015
USD ($)
|
Jun. 30, 2020
USD ($)
item
|
Dec. 31, 2019
USD ($)
|
|
Gemini | |||
Schedule of Equity Method Investments | |||
Ownership (as a percent) | 49.00% | ||
Gemini | |||
Schedule of Equity Method Investments | |||
Capital lease obligations assumed | $ | $ 35.4 | ||
Borrowings under a secured loan facility | $ | 30.0 | ||
Proceeds from equity contributions | $ | $ 47.4 | ||
Net assets | $ | $ 25.0 | $ 18.3 | |
Gemini | Suez Canal | |||
Schedule of Equity Method Investments | |||
TEU | 5,610 | ||
Gemini | Genoa | |||
Schedule of Equity Method Investments | |||
TEU | 5,544 | ||
Gemini | Catherine C | |||
Schedule of Equity Method Investments | |||
TEU | 6,422 | ||
Gemini | Leo C | |||
Schedule of Equity Method Investments | |||
TEU | 6,422 | ||
Gemini | Belita | |||
Schedule of Equity Method Investments | |||
TEU | 8,533 | ||
Gemini | Entities that leases Suez Canal and Genoa | |||
Schedule of Equity Method Investments | |||
Acquired interest | 100.00% | ||
Virage | Gemini | |||
Schedule of Equity Method Investments | |||
Ownership (as a percent) | 51.00% |
Investments in affiliates - Equity Accounted Investments (Details) - Gemini - USD ($) $ in Thousands |
1 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Aug. 31, 2015 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Summary of financial information | ||||
Ownership (as a percent) | 49.00% | |||
Current assets | $ 8,469 | $ 6,242 | ||
Non-current assets | 70,042 | 69,740 | ||
Current liabilities | 8,687 | 9,892 | ||
Non-current liabilities | 44,865 | $ 47,795 | ||
Net operating revenues | 16,441 | $ 7,451 | ||
Net income/(loss) | $ 6,664 | $ (106) |
Other Non-current Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Other Non-current Assets | ||
Advances for vessels additions | $ 18,800 | |
Advances for vessels acquisition | 2,507 | |
Other assets | $ 24,969 | 29,577 |
Total | 56,971 | 82,339 |
ZIM notes | ||
Other Non-current Assets | ||
Available for sale securities | 21,567 | 20,078 |
HMM notes | ||
Other Non-current Assets | ||
Available for sale securities | 10,360 | $ 11,377 |
Equity participation | ZIM | ||
Other Non-current Assets | ||
Equity participation ZIM | $ 75 |
Other Non-current Assets - ZIM (Details) - ZIM $ in Millions |
Jul. 31, 2014
USD ($)
|
---|---|
Series 1 Notes | |
Other Non-current Assets | |
Principal amount of unsecured notes received | $ 8.8 |
Series 2 Notes | |
Other Non-current Assets | |
Principal amount of unsecured notes received | $ 41.1 |
Other Non-current Assets - HMM (Details) - HMM $ in Millions |
Jul. 31, 2016
USD ($)
|
---|---|
Loan Notes 1 HMM | |
Other Non-current Assets | |
Principal amount of unsecured notes received | $ 32.8 |
Loan Notes 2 HMM | |
Other Non-current Assets | |
Principal amount of unsecured notes received | $ 6.2 |
Accrued Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Accrued Liabilities | ||
Accrued payroll | $ 866 | $ 809 |
Accrued interest | 2,437 | 3,910 |
Accrued scrubbers expenses | 2,391 | |
Accrued dry-docking expenses | 4,041 | |
Accrued expenses | 4,885 | 3,808 |
Total | $ 14,620 | $ 8,527 |
Financial Instruments - Interest Rate Swap Hedges (Details) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2020
USD ($)
agreement
|
Jun. 30, 2019
USD ($)
|
|
Financial Instruments | ||
Number of agreements held | agreement | 0 | |
Interest rate swap hedges | ||
Financial Instruments | ||
Unrealized losses reclassified from accumulated other comprehensive loss to earnings | $ 1.8 | $ 1.8 |
Unrealized losses expected to be reclassified from accumulated other comprehensive loss to earnings within the next twelve months | $ 3.6 |
Financial Instruments - Estimated Fair Values Of Financial Instruments (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Book Value | ||
Financial Instruments | ||
Cash and cash equivalents | $ 84,955 | $ 139,170 |
Long-term debt, including current portion | 1,392,552 | 1,423,812 |
Fair Value | ||
Financial Instruments | ||
Cash and cash equivalents | 84,955 | 139,170 |
Long-term debt, including current portion | 1,392,552 | 1,423,812 |
Notes | ZIM | Book Value | ||
Financial Instruments | ||
Notes | 21,567 | 20,078 |
Notes | ZIM | Fair Value | ||
Financial Instruments | ||
Notes | 21,567 | 20,078 |
Notes | HMM | Book Value | ||
Financial Instruments | ||
Notes | 10,360 | 11,377 |
Notes | HMM | Fair Value | ||
Financial Instruments | ||
Notes | $ 10,360 | $ 11,377 |
Lease Arrangements (Details) $ in Thousands |
Jun. 30, 2020
USD ($)
item
|
---|---|
Lease Arrangements | |
Number of vessels , generated revenue results | item | 58 |
Future minimum revenue expected to be earned | |
Remainder of 2020 | $ 206,915 |
2021 | 365,730 |
2022 | 281,494 |
2023 | 189,129 |
2024 | 57,070 |
2025 and thereafter | 62,212 |
Total future rentals | $ 1,162,550 |
Earnings per Share (Details) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Numerator: | ||||||
Net Income | $ 38,496 | $ 29,089 | $ 30,138 | $ 33,443 | $ 67,585 | $ 63,581 |
Denominator: | ||||||
Basic weighted average common shares outstanding | 24,573 | 14,939 | 24,573 | 14,939 | ||
Effect of dilutive securities: | ||||||
Share based compensation | 216 | 375 | 216 | 337 | ||
Diluted weighted average common shares outstanding | 24,789 | 15,314 | 24,789 | 15,276 |
Related Party Transactions (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Related Party Transactions | |||
Advances on account of the vessels' operating expenses | $ 22,376 | $ 20,512 | |
Recognized non-cash share-based compensation expense | 596 | $ 1,865 | |
Due to executive officers shown under accounts payable | 400 | 200 | |
Manager | |||
Related Party Transactions | |||
Management fees incurred shown under General and administrative expenses | 8,600 | 8,300 | |
Management commissions incurred shown under Voyage expenses | $ 2,700 | $ 2,700 | |
Management fee on gross freight, charter hire, ballast bonus and demurrage (as a percent) | 0.50% | ||
Management commission capitalized to vessel cost | $ 400 | ||
Advances on account of the vessels' operating expenses | $ 22,400 | $ 20,500 |
Subsequent Events (Details) - Subsequent event $ in Millions |
Oct. 02, 2020
USD ($)
installment
|
Aug. 03, 2020
USD ($)
|
Jul. 02, 2020
USD ($)
|
---|---|---|---|
Subsequent Event [Line Items] | |||
Common share repurchase program | $ 10.0 | ||
SinoPac credit facility | |||
Subsequent Event [Line Items] | |||
Credit facility | $ 13.3 | ||
Number of quarterly installments | installment | 19 | ||
Line of credit term | 5 years | ||
Balloon payment at maturity | $ 3.8 | ||
SinoPac credit facility | LIBOR | |||
Subsequent Event [Line Items] | |||
Margin percentage | 3.75% |