Danaos Corporation (NYSE:DAC) Q3 2022 Earnings Conference Call November 8, 2022 9:00 AM ET

Company Participants

John Coustas - Chairman, President and Chief Executive Officer

Evangelos Chatzis - Chief Financial Officer

Conference Call Participants

Omar Nokta - Jefferies & Company, Inc.

Christian Wetherbee - Citi Research

Climent Molins - Value Investor's Edge

Operator

Good day, and welcome to the Danaos Corporation Conference Call to discuss the financial results for the three months ended September 30, 2022. As a reminder, today's call is being recorded. Hosting the call today is Dr. John Coustas, Chief Executive Officer of Danaos Corporation; and Mr. Evangelos Chatzis, Chief Financial Officer of Danaos Corporation. Dr. Coustas and Mr. Chatzis will be making some introductory comments, and then we'll open the call to a question-and-answer session.

I would now like to turn the conference over to Mr. Evangelos Chatzis. Please go ahead.

Evangelos Chatzis

Thank you, operator, and good morning to everyone, and thank you for joining us this morning. Before we begin, I quickly want to remind everyone that management's remarks this morning may contain certain forward-looking statements and that actual results could differ materially from those projected today. These forward-looking statements are made as of today, and we undertake no obligation to update them. Factors that might affect future results are discussed in our filings with the SEC, and we encourage you to review these detailed safe harbor, and risk factor disclosures.

Please also note that where we feel appropriate, we will continue to refer to non-GAAP financial measures such as EBITDA, adjusted EBITDA and adjusted net income to evaluate our business. Reconciliations of non-GAAP financial measures to GAAP financial measures are included in our earnings release and accompanying materials.

With that, let me now turn the call over to Dr. John Coustas, who will provide a broad overview of the quarter. John?

John Coustas

Thank you, Evangelos. Good morning, everyone. This quarter marked the retreat of the container markets from unsustainable stratospheric highs to more normalized levels, albeit well above 2019 levels. The liner market has experienced a combination of supply chain normalization and demand destruction due to various factors. These include, but are not limited to, rampant inflation and declining GDP growth, the uncertainties created by the war in Ukraine and an energy crisis. This has been compounded by high inventories in warehouses and delayed collection of containers, both indirect impacts of easing of supply chain disruptions.