Diana Containerships Inc. reports financial results for the Third Quarter and Nine Months ended September 30, 2018

Accountancy, Company Profiles, Container shipping, Containers, Markets, Reports, Statistics, Stock Markets — By on November 23, 2018 at 2:47 PM

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ATHENS, GREECE, November 23, 2018 – Diana Containerships Inc. (NASDAQ: DCIX), (the “Company”), a global shipping company specializing in the ownership of containerships, today reported a net loss of $6.3 million for the third quarter of 2018, compared to a net loss of $8.7 million for the same period of 2017.  The loss for the third quarter of 2018 mainly includes $4.8 million of impairment charges for one vessel.

Time charter revenues were $5.2 million for the third quarter of 2018, compared to $6.7 million for the same period of 2017. This decrease was primarily due to the shrinkage of the Company’s fleet, and was partially offset by the increased time charter rates achieved as a result of improved market conditions.

Net loss for the nine months ended September 30, 2018 amounted to $52.5 million, compared to net income of $20.4 million for the nine months ended September 30, 2017. The loss for the nine months ended September 30, 2018 includes $20.4 million of impairment charges for two vessels and $16.7 million of aggregate loss on sale of seven vessels. Net income for the nine months ended September 30, 2017 included a gain of $42.2 million, net of related expenses, from a debt write-off, arising from the settlement agreement with respect to the secured loan facility with the Royal Bank of Scotland plc (“RBS”), which was signed on June 30, 2017. Time charter revenues for the nine months ended September 30, 2018, amounted to $19.5 million, compared to $16.0 million for the nine months ended September 30, 2017.

As of November 21, 2018, the Company had 14,463,231 shares of common stock issued and outstanding.

Fleet Employment Profile (As of November 23, 2018)
Diana Containerships Inc.’s fleet is employed as follows:
Vessel Sister Ships* Gross Rate (USD Per Day) Com** Charterers Delivery Date to       Charterers*** Redelivery Date to Owners**** Notes
BUILT    TEU
2 Panamax Container Vessels
PAMINA $9,500 3.75% Orient Overseas Container Line Ltd. 12-Sep-17 16-Aug-18
(ex Santa Pamina)
$11,950 5.00% Hyundai Merchant Marine Co., Ltd. 23-Aug-18 23-Apr-19 – 23-Aug-19
2005   5,042
DOMINGO $8,500 3.50% CMA CGM 14-Sep-17 3-Aug-18
(ex Cap Domingo)
$12,800 3.50% 3-Aug-18 3-Apr-19 – 3-Jul-19
2001   3,739
2 Post – Panamax Container Vessels
PUCON $18,000 3.75% Orient Overseas Container Line Ltd. 21-Jun-18 21-Feb-19 – 21-Jun-19
2006   6,541
HAMBURG A $11,000 3.75% Wan Hai Lines (Singapore) Pte Ltd. 1-Dec-17 20-Jul-18 1,2
2009   6,494
ROTTERDAM A $18,200 3.75% Wan Hai Lines (Singapore) Pte Ltd. 12-Jul-18 15-Apr-19 – 15-Jul-19 3
2008   6,494
* Each container vessel is a “sister ship”, or closely similar, to other container vessels that have the same letter.
** Total commission paid to third parties.
*** In case of newly acquired vessel with time charter attached, this date refers to the expected/actual date of delivery of the vessel to the Company.
**** Range of redelivery dates, with the actual date of redelivery being at the Charterers’ option, but subject to the terms, conditions, and exceptions of the particular charterparty.
1 “Hamburg” sold and delivered to her new owners on July 20, 2018.
2 Owners and charterers mutually agreed to extend the maximum redelivery date to July 20, 2018.
3 Vessel on scheduled drydocking from June 19, 2018 to July 11, 2018.

 

Summary of Selected Financial & Other Data
    For the three months ended September 30,   For the nine months ended September 30,
    2018   2017    2018   2017 
  (unaudited) (unaudited) (unaudited) (unaudited)
STATEMENT OF OPERATIONS DATA (in thousands of US Dollars):
  Time charter revenues $  5,229 $  6,728 $  19,489 $  16,001
  Voyage expenses  409  350  1,044  1,364
  Vessel operating expenses  2,914  6,084  12,641  17,201
  Net income / (loss)  (6,255)  (8,722)  (52,500)  20,403
FLEET DATA
Average number of vessels  4.2  11.0  7.1  11.6
Number of vessels  4.0  11.0  4.0  11.0
Ownership days  388  1,012  1,939  3,166
Available days  377  1,012  1,916  3,143
Operating days  365  820  1,809  2,244
Fleet utilization 96.8% 81.0% 94.4% 71.4%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1) $ 12,785 $ 6,302 $ 9,627 $ 4,657
Daily vessel operating expenses (2) $ 7,510 $ 6,012 $ 6,519 $ 5,433

_____________________

(1)          Time charter equivalent rates, or TCE rates, are defined as our time charter revenues, net, 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 and vessel registry, expenses relating to repairs and maintenance, the costs of spares and consumable stores, lubricant costs, tonnage taxes, regulatory fees, environmental costs, lay-up expenses and other miscellaneous expenses, are calculated by dividing vessel operating expenses by ownership days for the relevant period.

About the Company

Diana Containerships Inc. is a global provider of shipping transportation services through its ownership of containerships. The Company’s vessels are employed primarily on time charters with leading liner companies carrying containerized cargo along worldwide shipping routes.

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, vessel 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 attached)

 

 

DIANA CONTAINERSHIPS INC.
FINANCIAL TABLES
Expressed in thousands of U.S. Dollars, except for share and per share data
                   
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
       
    For the three months ended September 30,   For the nine months ended September 30,
    2018   2017    2018   2017 
REVENUES: (unaudited) (unaudited) (unaudited) (unaudited)
  Time charter revenues $  5,229 $  6,728 $  19,489 $  16,001
EXPENSES:
Voyage expenses  409  350  1,044  1,364
Vessel operating expenses  2,914  6,084  12,641  17,201
Depreciation and amortization of deferred charges  956  2,061  4,055  6,086
  General and administrative expenses  1,851  1,870  5,710  5,159
  Impairment losses  4,762  –  20,388  –
  Loss / (Gain) on vessels’ sale  21  –  16,700  (945)
Foreign currency (gains) / losses  (1)  22  (34)  31
Operating loss  (5,683)  (3,659)  (41,015)  (12,895)
OTHER INCOME / (EXPENSES):
Interest and finance costs  (581)  (5,080)  (11,520)  (8,958)
Interest income  9  17  35  71
Gain from bank debt write off  –  –  –  42,185
  Total other income / (expenses), net  (572)  (5,063)  (11,485)  33,298
 
Net income / (loss) $  (6,255) $  (8,722) $  (52,500) $  20,403
 
Earnings/ (Loss) per common share, basic $  (0.61) $  (128.67) $  (6.45) $  847.05
Earnings/ (Loss)  per common share, diluted $  (0.61) $  (128.67) $  (6.45) $  845.02
 
Weighted average number of common shares, basic 10,253,485 67,784 8,141,811 24,074
 
Weighted average number of common shares, diluted 10,253,485 67,784 8,141,811 24,132
   
 
 
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS)
                   
      For the three months ended September 30,   For the nine months ended September 30,
2018   2017  2018   2017 
(unaudited) (unaudited) (unaudited) (unaudited)
Net income / (loss) $ (6,255) $ (8,722) $ (52,500) $ 20,403
Comprehensive income / (loss) $ (6,255) $ (8,722) $ (52,500) $ 20,403
   

 

 

CONDENSED CONSOLIDATED BALANCE SHEET DATA    
(Expressed in thousands of US Dollars)
  September 30, 2018 December 31, 2017*
ASSETS   (unaudited)  
           
 Cash and cash equivalents $ 5,458 $ 6,444
 Vessels held for sale 18,378
 Vessels, net   86,895   201,308
 Other fixed assets, net   950   911
 Other assets   2,848   5,266
Total assets $ 96,151 $ 232,307
 
LIABILITIES AND STOCKHOLDERS’ EQUITY    
       
 Unrelated party financing, net of unamortized deferred financing costs $ $ 12,119
 Related party financing, net of unamortized deferred financing costs 84,832
 Other liabilities 4,478 4,584
 Total stockholders’ equity 91,673 130,772
Total liabilities and stockholders’ equity $ 96,151 $ 232,307
 
* The balance sheet data as of December 31, 2017 has been derived from the audited consolidated financial statements at that date.

 

OTHER FINANCIAL DATA
                 
    For the three months ended September 30,   For the nine months ended September 30,
    2018    2017    2018    2017 
(unaudited) (unaudited) (unaudited) (unaudited)
 Net Cash used in Operating Activities $  (295) $  (3,033) $  (837) $  (11,061)
 Net Cash provided by / (used in) Investing Activities  19,836  (3)  92,840  6,666
 Net Cash used in Financing Activities **  (37,447)  (350)  (92,989)  (4,740)
** Figures of the nine months ended September 30, 2017 were adjusted, as the Company adopted ASU No 2016-18, according to which changes in restricted cash are not reported anymore as cash flow activities in the statement of cash flows.
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