ATHENS, Greece, Feb. 23, 2012 (GLOBE NEWSWIRE) -- Diana Containerships Inc. (Nasdaq:DCIX), a global shipping company specializing in owning and operating containerships, today reported net income of $1.3 million for the fourth quarter of 2011, compared to a net loss of $15.6 thousand for the same period of 2010.
Time charter revenues were $9.8 million for the fourth quarter of 2011, compared to $3.3 million for the same period of 2010, mainly due to the increase in the number of vessels in the fleet following the delivery of the Maersk Merlion, Maersk Malacca and Maersk Madrid in June 2011, as well as the increase in average time charter revenues.
Net income to Diana Containerships Inc., for the year ended December 31, 2011 amounted to $3.6 million, compared to a net loss of $2.0 million for the period from January 7, 2010 (inception date) to December 31, 2010. Time charter revenues were $27.0 million for the year ended December 31, 2011, compared to $5.7 million for the same period in 2010.
Dividend Declaration
The Company has declared a cash dividend on its common stock of $0.15 per share. The cash dividend will be payable on March 22, 2012 to all shareholders of record as at March 8, 2012. The Company has 23,076,161 shares of common stock outstanding.
Chairman and Chief Executive Officer's Comments
"The performance of Diana Containerships in 2011 reflects the implementation of our strategies to build a quality fleet with the ability to deliver strong and consistent revenues. The growth in time charter revenues during the fourth quarter was accompanied by an increase in operating expenses, mainly due to the extensive maintenance costs brought forward for the newly acquired Maersk vessels. Soon all our vessels will have been upgraded to our Company's technical standards and operating expenses will in effect stabilize. Our results going forward will also benefit from the addition of four vessels to our fleet since the start of 2012. In the current market conditions, we are confident that our growing fleet and relationships with leading charterers, together with our strong balance sheet, offers the right formula to deliver value and substantial dividends to our shareholders," said Simeon Palios, Chairman and Chief Executive Officer of Diana Containerships Inc.
| Fleet Employment Profile (As of February 21, 2012) | ||||||||||||||
| Currently Diana Containerships' fleet is employed as follows: | ||||||||||||||
|
Vessel BUILT TEU |
Sister Ships* |
Gross Rate (USD Per Day) |
Com** |
Charterer |
Delivery Date to Charterer |
Redelivery Date to Owners*** |
Notes |
|||||||
| Container Vessels | ||||||||||||||
| SAGITTA | A | $22,000 | 2.25% |
A.P. Moller - Maersk A/S |
15-May-11 | 15-Mar-13 - 15-Jun-13 | 1 | |||||||
| 2010 3,426 | ||||||||||||||
| CENTAURUS | A | $20,000 | 2.25% | CSAV Valparaiso | 4-Sep-10 | 21-Jul-12 - 19-Oct-12 | ||||||||
| 2010 3,426 | ||||||||||||||
| MAERSK MALACCA | B | $21,450 | 2.25% |
A.P. Moller - Maersk A/S |
24-Jun-11 | 10-May-13 - 8-Aug-13 | 2 | |||||||
| 1990 4,714 | ||||||||||||||
| MAERSK MERLION | B | $21,450 | 2.25% |
A.P. Moller - Maersk A/S |
19-Jun-11 | 5-May-13 - 3-Aug-13 | 2 | |||||||
| 1990 4,714 | ||||||||||||||
| MAERSK MADRID | $21,450 | 2.25% |
A.P. Moller - Maersk A/S |
15-Jun-11 | 1-May-13 - 30-Jul-13 | 2 | ||||||||
| 1989 4,206 | ||||||||||||||
| CAP SAN MARCO | C | $22,750 | 1.00% | Reederei Santa | 6-Feb-12 | 6-Feb-13 | ||||||||
| $22,850 | 1.00% | Containerschiffe | 6-Feb-13 | 6-Feb-14 | ||||||||||
| 2001 3,739 | $23,250 | 1.00% |
GmbH & Co. KG |
6-Feb-14 | 23-Dec-14 - 23-Mar-15 | |||||||||
| CAP SAN RAPHAEL | C | $22,750 | 1.00% | Reederei Santa | 6-Feb-12 | 6-Feb-13 | ||||||||
| $22,850 | 1.00% | Containerschiffe | 6-Feb-13 | 6-Feb-14 | ||||||||||
| 2002 3,739 | $23,250 | 1.00% |
GmbH & Co. KG |
6-Feb-14 | 23-Dec-14 - 23-Mar-15 | |||||||||
| APL SARDONYX | D | $24,750 | 2.00% |
APL (Bermuda) Ltd. |
17-Feb-12 | 3-Jan-14 - 3-Apr-14 | 3 | |||||||
| 1995 4,729 | ||||||||||||||
| APL SPINEL | D | $24,750 | 2.00% |
APL (Bermuda) Ltd. |
1-Mar-12 | 15-Jan-14 - 15-Apr-14 | 3,4 | |||||||
| 1996 4,729 | ||||||||||||||
| * Each container vessel is a "sister ship", or closely similar, to other container vessels that have the same letter. | ||||||||||||||
| ** Total commission as a percentage of charterhire paid to third parties and Diana Shipping Services S.A. | ||||||||||||||
| *** 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 11-13 month period. The optional period, if exercised, must be declared on or before December 15, 2012 and can only commence on May 1, 2013 at a gross daily rate of $30,000. | ||||||||||||||
| 2 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. | ||||||||||||||
| 3 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. | ||||||||||||||
| 4 Estimated date. | ||||||||||||||
| Summary of Selected Financial & Other Data | ||||
|
For the three months ended December 31, |
For the year ended December 31, |
For the period from January 7 (inception date) to December 31, |
||
| 2011 | 2010 | 2011 | 2010 | |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |
| INCOME STATEMENT DATA: | ||||
| Time charter revenues | $ 9,776,067 | $ 3,312,000 | $ 26,992,271 | $ 5,734,716 |
| Voyage expenses | 224,042 | 118,680 | 731,013 | 266,967 |
| Vessel operating expenses | 4,643,890 | 1,196,680 | 11,134,000 | 2,884,610 |
| Net income / (loss) | 1,306,956 | (15,602) | 3,630,038 | (2,001,361) |
| FLEET DATA | ||||
| Average number of vessels | 5.0 | 2.0 | 3.6 | 1.0 |
| Number of vessels | 5.0 | 2.0 | 5.0 | 2.0 |
| Weighted average age of fleet (in years) | 15.0 | 0.6 | 15.0 | 0.6 |
| Ownership days | 460 | 184 | 1,320 | 361 |
| Available days | 460 | 184 | 1,320 | 361 |
| Operating days | 459 | 184 | 1,311 | 352 |
| Fleet utilization | 99.8% | 100.0% | 99.3% | 97.5% |
| AVERAGE DAILY RESULTS | ||||
| Time charter equivalent (TCE) rate (1) | $ 20,765 | $ 17,355 | $ 19,895 | $ 15,146 |
| Daily vessel operating expenses (2) | $ 10,095 | $ 6,504 | $ 8,435 | $ 7,991 |
| (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 Thursday, February 23, 2012.
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 Account number 391 and Replay ID number 387624.
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.
| DIANA CONTAINERSHIPS INC. | ||||
| FINANCIAL TABLES | ||||
| Expressed in U.S. Dollars, except for share data | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
|
For the three months ended December 31, |
For the year ended December 31, |
For the period from January 7 (inception date) to December 31, |
||
| 2011 | 2010 | 2011 | 2010 | |
| REVENUES: | (unaudited) | (unaudited) | (unaudited) | |
| Time charter revenues | $ 9,776,067 | $ 3,312,000 | $ 26,992,271 | $ 5,734,716 |
| EXPENSES: | ||||
| Voyage expenses | 224,042 | 118,680 | 731,013 | 266,967 |
| Vessel operating expenses | 4,643,890 | 1,196,680 | 11,134,000 | 2,884,610 |
| Depreciation | 2,143,451 | 739,358 | 5,937,591 | 1,453,877 |
| Management fees | 225,000 | 90,000 | 650,000 | 203,000 |
| General and administrative expenses | 973,577 | 946,828 | 3,441,716 | 3,523,986 |
| Foreign currency losses / (gains) | 3,992 | 1,903 | 17,646 | (1,043,563) |
| Operating income / (loss) | 1,562,115 | 218,551 | 5,080,305 | (1,554,161) |
| OTHER INCOME / (EXPENSES): | ||||
| Interest and finance costs | (303,871) | (245,438) | (1,604,159) | (511,291) |
| Interest Income | 48,712 | 11,285 | 153,892 | 64,091 |
| Total other expenses, net | (255,159) | (234,153) | (1,450,267) | (447,200) |
| Net income / (loss) | $ 1,306,956 | $ (15,602) | $ 3,630,038 | $ (2,001,361) |
| Earnings / (loss) per common share, basic and diluted | $ 0.06 | $ -- | $ 0.23 | $ (0.45) |
| Weighted average number of common shares, basic | 22,929,499 | 5,946,165 | 15,536,028 | 4,449,431 |
| Weighted average number of common shares, diluted | 22,937,387 | 5,946,165 | 15,543,916 | 4,449,431 |
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | ||
| (Expressed in U.S. Dollars) | ||
| 2011 | 2010 | |
| ASSETS | ||
| Cash and cash equivalents | $ 41,353,829 | $ 11,098,284 |
| Other current assets | 2,205,420 | 1,277,730 |
| Advances for vessel acquisitions and other vessel costs | 6,634,239 | -- |
| Vessels' net book value | 158,826,747 | 92,077,309 |
| Other non-current assets | 991,389 | 895,846 |
| Total assets | $ 210,011,624 | $ 105,349,169 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities, including current portion of long-term debt | $ 3,115,013 | $ 2,428,676 |
| Long-term debt, net of current portion | -- | 18,128,095 |
| Other non-current liabilities | 364,253 | 181,684 |
| Total stockholders' equity | 206,532,358 | 84,610,714 |
| Total liabilities and stockholders' equity | $ 210,011,624 | $ 105,349,169 |
| OTHER FINANCIAL DATA | ||||
|
For the three months ended December 31, |
For the year ended December 31, |
For the period from January 7, (inception date) to December 31, |
||
| 2011 | 2010 | 2011 | 2010 | |
| (unaudited) | (unaudited) | (unaudited) | ||
| Net Cash provided by / (used in) Operating Activities | $ 4,620,258 | $ (316,655) | $ 12,503,986 | $ (186,525) |
| Net Cash used in Investing Activities | (7,443,051) | -- | (79,321,268) | (93,531,186) |
| Net Cash provided by / (used in) Financing Activities | (4,416,424) | (1,116,800) | 97,072,827 | 103,764,596 |