Diana Containerships Inc., reports…

Container shipping, Markets, Shipmanagement — By on February 19, 2013 at 1:09 PM

Diana Containerships Inc. logoDIANA CONTAINERSHIPS INC. REPORTS

  • FINANCIAL RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2012 
  • DECLARES CASH DIVIDEND OF $0.30 PER SHARE  FOR THE FOURTH QUARTER 
  • ANNOUNCES AGREEMENT TO ACQUIRE A PANAMAX CONTAINER VESSEL
  • ANNOUNCES ESTABLISHMENT OF NEW MANAGEMENT COMPANY

ATHENS, GREECE, February 19, 2013 – Diana Containerships Inc. (NASDAQ: DCIX), a global shipping company specializing in owning and operating containerships, today reported net income of $0.3 million for the fourth quarter of 2012, compared to net income of $1.3 million for the same period of 2011.

Time charter revenues were $14.6 million for the fourth quarter of 2012, compared to $9.8 million for the same period of 2011, mainly due to the increase in the number of vessels in the fleet following the delivery in February, March and November 2012 of the Cap San Marco (renamed Cap Domingo), Cap San Raphael (renamed Cap Doukato), APL Sardonyx, APL Spinel and APL Garnet.

Net income to Diana Containerships Inc. for the year ended December 31, 2012 amounted to $6.0 million, compared to net income of $3.6 million for the same period of 2011. Time charter revenues were $56.6 million for the year ended December 31, 2012, compared to $27.0 million for the same period in 2011.

Dividend Declaration

The Company has declared a cash dividend on its common stock of $0.30 per share. The cash dividend will be payable on or around March 21, 2013 to all shareholders of record as at March 5, 2013. The Company has 32, 191, 964 shares of common stock outstanding.

Acquisition of a Panamax Container Vessel

In addition, the Company also announced that it has today signed, through a separate wholly-owned subsidiary, a Memorandum of Agreement with Hanjin Shipping Co., Ltd., Seoul, for the purchase of a 1993-built Panamax container vessel of approximately 4, 024 TEU capacity, the m/v “Hanjin Malta”, for a purchase price of US$22 million. The vessel is expected to be delivered to the Company from the sellers in mid-March 2013.

The vessel is to be chartered to Hanjin Shipping Co. Ltd., Seoul (or a nominee to be fully guaranteed by Hanjin Shipping Co. Ltd., Seoul), for a period of minimum thirty-six and a half (36.5) months to maximum thirty-eight (38) months at a gross rate of US$25, 550 per day. The time-charter party is to commence simultaneously upon delivery of the vessel to the Company, and is expected to generate approximately US$27.98 million of gross revenues for the minimum agreed period of the charter.

The vessel is anticipated to be purchased using the Company’s existing cash.

Establishment of New Fleet Manager

The Company also today announced that it has established a new wholly-owned subsidiary, Unitized Ocean Transport Limited, or UOT, for the purpose of providing management services similar to those provided currently by Diana Shipping Services S.A., including vessel commercial and technical management, administrative services, and ship brokering services. The Company, and its vessel-owning subsidiaries, intend to enter into new agreements with UOT for the provision of these management services after March 1, 2013.  We expect the material terms of these new management agreements with UOT to be substantially similar to those of the Company’s current agreements with Diana Shipping Services S.A.

Fleet   Employment Profile (As of February 19, 2013)  
Currently Diana Containerships Inc.’s fleet is employed   as follows:

Vessel

Sister Ships*

Gross Rate (USD Per Day)

Com**

Charterer

Delivery Date to Charterer

Redelivery Date to Owners***

Notes

BUILT    TEU

Container Vessels

SAGITTA

A

$22, 000

1.25%

A.P. Moller –   Maersk A/S

15-May-11

15-Mar-13 –   15-Jun-13

2010    3, 426

CENTAURUS

A

$7, 500

3.50%

CMA CGM S.A.

13-Aug-12

13-Apr-13 –   13-Aug-13

2010   3, 426

MAERSK MALACCA

B

$21, 450

1.25%

A.P. Moller –   Maersk A/S

24-Jun-11

10-May-13 –   8-Aug-13

1

1990   4, 714

MAERSK MERLION

B

$21, 450

1.25%

A.P. Moller –   Maersk A/S

19-Jun-11

5-May-13 –   3-Aug-13

1990   4, 714

MAERSK MADRID

$21, 450

1.25%

A.P. Moller –   Maersk A/S

15-Jun-11

1-May-13 –   30-Jul-13

1989   4, 206

CAP DOMINGO

C

$22, 750

Reederei Santa   Containerschiffe GmbH & Co. KG

6-Feb-12

6-Feb-13

2, 3

(ex Cap San   Marco)

$22, 850

0%

6-Feb-13

6-Feb-14

2001   3, 739

$23, 250

6-Feb-14

23-Dec-14 –   23-Mar-15

CAP DOUKATO

C

$22, 750

Reederei Santa   Containerschiffe GmbH & Co. KG

6-Feb-12

6-Feb-13

2, 3

(ex Cap San   Raphael)

$22, 850

0%

6-Feb-13

6-Feb-14

2002   3, 739

$23, 250

6-Feb-14

23-Dec-14 –   23-Mar-15

APL SARDONYX

D

$24, 750

1.00%

APL (Bermuda)   Ltd.

17-Feb-12

3-Jan-14 –   3-Apr-14

3, 4, 5

1995   4, 729

APL GARNET

D

$27, 000

0%

NOL Liner (Pte)   Ltd.

19-Nov-12

20-Aug-15 –   19-Oct-15

3

1995   4, 729

APL SPINEL

D

$24, 750

1.00%

APL (Bermuda)   Ltd.

1-Mar-12

15-Jan-14 –   15-Apr-14

3, 4, 5

1996   4, 729

HANJIN MALTA

$25, 550

US$150 per day

Hanjin Shipping   Co. Ltd., Seoul

15-Mar-13

30-Mar-16 –   15-May-16

3, 6

1993   4, 024

* Each container vessel is a “sister ship”, or   closely similar, to other container vessels that have the same letter.
** Commission of charterhire paid to third parties,   excluding 1% commission paid to Diana Shipping Services S.A. as part of   management fees.
*** Charterers’ optional period to redeliver the vessel   to owners. Charterers have the right to add the off hire days, if any, and therefore   the optional period may be extended.
1 The charterer   has the option to employ the vessel for a further 12 month period, plus or   minus 45 days at a gross daily rate of $25, 000. The optional period, if   exercised, must be declared on or before the end of the 20th month of   employment and will only commence at the end of the 24th month.
2 For financial   reporting purposes, we recognize revenue from time charters that have varying   rates on a straight-line basis equal to the average revenue during the term   of that time charter. We calculate quarterly dividends based on the available   cash from operations during the relevant quarter.
3 For financial   reporting purposes, revenues derived from the time charter agreement will be   netted off during the term of the time charter with an amortization charge of   the asset that was recognized at the delivery of the vessel, being the   difference of the present value of the contractual cash flows to the fair   value. However, we calculate quarterly dividends based on the available cash   from operations during the relevant quarter.
4 The charterer   has the option to employ the vessel for a further 12   month period plus or minus 45 days, at a daily rate of $24, 750 starting 24   months after delivery of the vessel to the charterer. After that period the   charterer has the option to employ the vessel for a further 12 month period   plus or minus 45 days, at a daily rate of $28, 000 starting 36 months after   delivery of the vessel to the charterer.    Options must be declared by the charterer not later than 20 months for   the first option and 32 months for the second option after the delivery date   to the charterer.
5 Since   December 28, 2012 charterers have changed to NOL Liner (Pte) Ltd.
6 Estimated   dates based on expected date of delivery from sellers to owners.

 

Summary of Selected Financial & Other Data

 

 

 For the three months ended December 31,

 

 For the years ended December 31,

 

 

2012

 

2011

 

2012

 

2011

 

 

(unaudited)

(unaudited)

(unaudited)

(unaudited)

INCOME   STATEMENT DATA (in thousands of US Dollars):

 

Time charter revenues, net of prepaid charter revenue   amortization

$

 14, 637

$

 9, 776

$

 56, 631

$

 26, 992

Voyage expenses

 375

 224

 1, 404

 731

Vessel operating expenses

 8, 809

 4, 644

 28, 969

 11, 134

Net income

 271

 1, 307

 5, 969

 3, 630

 FLEET DATA   
  Average number of vessels

 9.5

 5.0

 8.6

 3.6

Number of vessels

 10.0

 5.0

 10.0

 5.0

Ownership days

 871

 460

 3, 156

 1, 320

Available days

 871

 460

 3, 156

 1, 320

Operating days

 870

 459

 3, 150

 1, 311

Fleet utilization

99.9%

99.8%

99.8%

99.3%

AVERAGE DAILY   RESULTS
  Time charter equivalent (TCE) rate (1)

$

16, 374

$

20, 765

$

17, 499

$

19, 895

Daily vessel operating expenses (2)

$

10, 114

$

10, 095

$

9, 179

$

8, 435

_________________________

(1)           Time charter equivalent rates, or TCE rates, are defined as our time charter revenues less voyage expenses during a period divided by the number of our available days during the period, which is consistent with industry standards.  Voyage expenses include port charges, bunker (fuel) expenses, canal charges and commissions.  TCE is a non-GAAP measure.  TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per day amounts while charter hire rates for vessels on time charters are generally expressed in such amounts.

(2)           Daily vessel operating expenses, which include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the costs of spares and consumable stores, tonnage taxes and other miscellaneous expenses, are calculated by dividing vessel operating expenses by ownership days for the relevant period.

Conference Call and Webcast Information

Diana Containerships Inc. will conduct a conference call and simultaneous Internet webcast to review these results at 9:00 A.M. (Eastern Time) on Tuesday, February 19, 2013.

Investors may access the webcast by visiting the Company’s website at www.dcontainerships.com, and clicking on the webcast link.  The conference call also may be accessed by telephone by dialing 1-877-407-8029 (for U.S.-based callers) or 1-201-689-8029 (for international callers), and asking the operator for the Diana Containerships Inc. conference call.

A replay of the webcast will be available soon after the completion of the call and will be accessible for 30 days on www.dcontainerships.com.  A telephone replay also will be available for 30 days by dialing 1-877-660-6853 (for U.S.-based callers) or 1-201-612-7415 (for international callers), and providing the Replay ID number 408535.

About the Company

Diana Containerships Inc. is a Marshall Islands corporation founded in 2010 to own and operate containerships and pursue containership acquisition opportunities. Diana Containerships Inc. intends to continue to capitalize on investment opportunities by purchasing additional containerships in the secondhand market, from other companies, shipyards and lending institutions, and may also enter into newbuilding contracts with shipyards for new containerships.

Cautionary Statement Regarding Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements.  The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business.  Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe, ” “anticipate, ” “intends, ” “estimate, ” “forecast, ” “project, ” “plan, ” “potential, ” “may, ” “should, ” “expect, ” “pending” and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management’s examination of historical operating trends, data contained in our records and other data available from third parties.  Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for containership capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors.  Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.

(See financial tables herebelow)

 DIANA CONTAINERSHIPS INC.

 FINANCIAL TABLES

 Expressed in thousands of U.S. Dollars,   except for share and per share data

 

 

 

 

 

 

 

 

 

 CONSOLIDATED STATEMENTS OF INCOME

       

 

 

 For the three months ended December 31,

 

 For the years ended December 31,  

 

 

2012

 

2011

 

2012

 

2011

 REVENUES:  

 (unaudited)

 (unaudited)

 (unaudited)

  Time charter revenues, net of prepaid charter revenue   amortization

$

 14, 637

$

 9, 776

$

 56, 631

$

 26, 992

 EXPENSES:  
Voyage expenses

 375

 224

 1, 404

 731

Vessel operating expenses

 8, 809

 4, 644

 28, 969

 11, 134

Depreciation

 3, 337

 2, 143

 12, 476

 5, 937

Management fees

 425

 225

 1, 551

 650

General and administrative expenses

 768

 974

 3, 468

 3, 442

Foreign currency losses / (gains)

 (92)

 4

 (194)

 18

Operating   income  

 1, 015

 1, 562

 8, 957

 5, 080

 OTHER INCOME / (EXPENSES):  
Interest and finance costs

 (772)

 (304)

 (3, 066)

 (1, 604)

Interest Income

 28

 49

 78

 154

Total other   expenses, net  

 (744)

 (255)

 (2, 988)

 (1, 450)

 
Net income

$

 271

$

 1, 307

$

 5, 969

$

 3, 630

 
Earnings per   common share, basic and diluted

$

 0.01

$

 0.06

$

 0.22

$

 0.23

 Weighted average number of common shares,   basic

 

32, 111, 969

22, 929, 499

26, 934, 533

15, 536, 028

 
 Weighted average number of common shares,   diluted

 

32, 111, 969

22, 937, 387

26, 934, 533

15, 543, 916

 

 

 CONSOLIDATED STATEMENTS OF COMPREHENSIVE   INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 For the three months ended December 31,

 

 For the years ended December 31,  

 

2012

 

2011

 

2012

 

2011

 

 (unaudited)

 (unaudited)

 (unaudited)

 

 Net income $

271

$

1, 307

$

5, 969

$

3, 630

 Comprehensive income $

271

$

1, 307

$

5, 969

$

3, 630

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEET DATA    
(Expressed in thousands of US Dollars)

 

2012

 

2011

ASSETS

 

 

 

 

 

 

 

 
 Cash and cash equivalents

$

31, 526

$

41, 354

 Other current assets

5, 386

2, 205

 Advances for vessel acquisitions and other   vessel costs

6, 634

 Vessels’ net book value

260, 945

158, 827

 Other non-current assets

39, 188

991

Total assets

$

337, 045

$

210, 011

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

   
 

 

   
 Current liabilities

$

6, 110

$

3, 114

 Long-term debt, net of unamortized deferred   financing costs

91, 906

 Other non-current liabilities

271

364

 Total stockholders’ equity

238, 758

206, 533

Total liabilities and stockholders’ equity

$

337, 045

$

210, 011

 

OTHER   FINANCIAL DATA  
           
 

 For the three months ended December 31,

 

 For the years ended December 31,

 

 

2012

 

2011

 

2012

 

2011

 

(unaudited)

(unaudited)

(unaudited)

Net Cash   provided by Operating Activities $

 6, 897

$

 4, 620

$

 31, 346

$

 12, 504

Net Cash used   in Investing Activities

 (30, 087)

 (7, 443)

 (149, 960)

 (79, 321)

Net Cash   provided by / (used in) Financing Activities

 (9, 657)

 (4, 416)

 108, 786

 97, 073

 

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