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TheStreet Open House

Diana Containerships Inc. Reports Financial Results For The Third Quarter And Nine Months Ended September 30, 2013

Stocks in this article: DCIX

ATHENS, GREECE, Nov. 14, 2013 (GLOBE NEWSWIRE) -- Diana Containerships Inc. (Nasdaq:DCIX), a global shipping company specializing in the ownership of containerships, today reported a net loss of $0.7 million for the third quarter of 2013, compared to net income of $1.6 million for the respective period of 2012.

Time charter revenues, net of prepaid charter revenue amortization, were $11.1 million for the third quarter of 2013, compared to $14.6 million for the same period of 2012, mainly due to reduced average time charter rates and the decrease in ownership days in 2013 compared to 2012, resulting from the disposal of the vessels Madrid, Malacca and Merlion in May and June 2013, which was partly offset by the addition to the Company's fleet of the vessels APL Garnet, delivered in November 2012, and Hanjin Malta, Puelo and Pucon, delivered in March, August and September 2013, respectively.

Net loss for the nine months ended September 30, 2013 amounted to $37.6 million, as a result of an impairment loss and other direct sale charges totalling $36.9 million for the vessels Madrid, Malacca and Merlion, without which the result for the nine months ended September 30, 2013 would be a loss of $0.7 million, compared to net income of $5.7 million for the same period of 2012. Time charter revenues, net of prepaid charter revenue amortization, were $38.5 million for the nine months ended September 30, 2013, compared to $42.0 million for the respective period in 2012.

Dividend Declaration

The Company has declared a cash dividend on its common stock of $0.15 per share with respect to the third quarter of 2013. The cash dividend will be payable on or around December 18, 2013 to all shareholders of record as at November 29, 2013. The Company has 33,983,160 shares of common stock outstanding.

 
Fleet Employment Profile (As of November 14, 2013)
Currently Diana Containerships Inc.'s fleet is employed as follows:
 
Vessel   Gross Rate      Delivery Date     
BUILT TEU Sister Ships* (USD Per Day) Com** Charterer to Charterer Redelivery Date to Owners*** Notes
Panamax Container Vessels
               
SAGITTA A $ 7,250 1.25% A.P. Moller -  15-Mar-13 1-Jan-14 - 15-Feb-14  
2010 3,426       Maersk A/S      
CENTAURUS A $ 7,500 3.50% CMA CGM S.A. 13-Aug-12 13-Feb-14 - 13-Jun-14 1
2010 3,426              
CAP DOMINGO B $ 22,850   Reederei Santa  6-Feb-13 6-Feb-14 2,3
(ex Cap San Marco)     0% Containerschiffe       
2001 3,739   $ 23,250   GmbH & Co. KG 6-Feb-14 23-Dec-14 - 23-Mar-15  
CAP DOUKATO B $ 22,850   Reederei Santa  6-Feb-13 6-Feb-14 2,3
(ex Cap San Raphael)     0% Containerschiffe       
2002 3,739   $ 23,250   GmbH & Co. KG 6-Feb-14 23-Dec-14 - 23-Mar-15  
APL SARDONYX C $ 24,750 1.00% APL (Bermuda) Ltd. 17-Feb-12 3-Jan-14 - 3-Apr-14 3,4
1995 4,729              
APL GARNET C $ 27,000 0% NOL Liner (Pte) Ltd. 19-Nov-12 20-Aug-15 - 19-Oct-15 3
1995 4,729              
APL SPINEL C $ 24,750 1.00% APL (Bermuda) Ltd. 1-Mar-12 15-Jan-14 - 15-Apr-14 3,4
1996 4,729              
HANJIN MALTA   $ 25,550 US$150 per day Hanjin Shipping Co. Ltd. 15-Mar-13 30-Mar-16 - 15-May-16 3
1993 4,024              
 
Post - Panamax Container Vessels
 
PUELO D $ 27,900 US$150 per day CSAV Valparaiso 23-Aug-13 23-Feb-15 - 23-Feb-16 5
2006 6,541              
PUCON D $ 27,900 US$150 per day CSAV Valparaiso 20-Sep-13 20-Mar-15 - 20-Mar-16 5
2006 6,541              
               
* 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.
*** 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 On June 7, 2013, the Company agreed to extend as from August 13, 2013 the initially signed charter party with CMA CGM S.A., dated August 2, 2012 for a period of minimum 6 months to maximum 10 months.
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 Since December 28, 2012 charterers have changed to NOL Liner (Pte) Ltd.
5 In case the vessel is redelivered to the Company in any period between the earliest and the maximum redelivery period after delivery, then the charterers will pay a lump sum equivalent to US$6,000 per day to the owners for the outstanding period between the redelivery date and up to the 30 months.
 
Summary of Selected Financial & Other Data
  For the three months ended September 30, For the nine months ended September 30,
  2013 2012 2013 2012
  (unaudited) (unaudited) (unaudited) (unaudited)
INCOME STATEMENT DATA (in thousands of US Dollars):        
Time charter revenues, net of prepaid charter revenue amortization $ 11,131 $ 14,606 $ 38,513 $ 41,993
Voyage expenses 110 366 527 1,029
Vessel operating expenses 6,897 7,410 23,557 20,160
Net income / (loss) (718) 1,591 (37,562) 5,698
FLEET DATA        
Average number of vessels 8.5 9.0 9.6 8.3
Number of vessels 10.0 9.0 10.0 9.0
Ownership days 786 828 2,608 2,285
Available days 786 828 2,608 2,285
Operating days 784 827 2,538 2,280
Fleet utilization 99.7% 99.9% 97.3% 99.8%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1) $ 14,022 $ 17,198 $ 14,565 $ 17,927
Daily vessel operating expenses (2) $ 8,775 $ 8,949 $ 9,033 $ 8,823

(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.

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