Danaos Corporation (DAC) has reported a 58.20 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $18.44 million, or $0.17 a share in the quarter, compared with $44.12 million, or $0.40 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $24.52 million, or $0.22 a share compared with $47.23 million or $0.43 a share, a year ago. Revenue during the quarter dropped 19.92 percent to $110.09 million from $137.47 million in the previous year period. Total expenses were 61.78 percent of quarterly revenues, up from 51.42 percent for the same period last year. That has resulted in a contraction of 1036 basis points in operating margin to 38.22 percent.
Operating income for the quarter was $42.07 million, compared with $66.78 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $72.55 million compared with $99.35 million in the prior year period. At the same time, adjusted EBITDA margin contracted 637 basis points in the quarter to 65.90 percent from 72.27 percent in the last year period.
Danaos' chief executive officer Dr. John Coustas commented: "During this extended period of market weakness which has presented many challenges, we remain focused on taking necessary actions to preserve the value of our company by managing our fleet efficiently and taking prudent measures to manage and ultimately deleverage our balance sheet."
Operating cash flow drops significantly
Danaos Corporation has generated cash of $44.33 million from operating activities during the quarter, down 27.80 percent or $ 17.07 million, when compared with the last year period. The company has spent $1.53 million cash to meet investing activities during the quarter as against cash inflow of $3.33 million in the last year period.
The company has spent $51.15 million cash to carry out financing activities during the quarter as against cash outgo of $46.35 million in the last year period.
Cash and cash equivalents stood at $65.38 million as on Mar. 31, 2017, down 27.87 percent or $25.26 million from $90.64 million on Mar. 31, 2016.
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