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DECLARES CASH DIVIDEND OF $0.05 PER SHARE FOR THE FIRST QUARTER
REPORTS AT-THE-MARKET OFFERING PROCEEDS
ATHENS, Greece, May 13, 2014 (GLOBE NEWSWIRE) -- Diana Containerships Inc. (Nasdaq:DCIX), (the "Company"), a global shipping company specializing in the ownership of containerships, today reported net income of $0.3 million for the first quarter of 2014, compared to a net loss of $31.8 million for the respective period of 2013. During the first quarter of 2014, the Company incurred losses arising from the disposal of the vessel "Sardonyx", amounting to $0.7 million, without which the net income for the first quarter of 2014 would have been $1.0 million and the earnings per share, basic and diluted, would have been $0.03 for that quarter.
Time charter revenues, net of prepaid charter revenue amortization, were $13.5 million for the first quarter of 2014, compared to $15.1 million for the same period of 2013.
The Company has declared a cash dividend on its common stock of $0.05 per share with respect to the first quarter of 2014. The cash dividend will be payable on or around June 11, 2014 to all shareholders of record as at May 28, 2014. The Company has 36,505,605 shares of common stock outstanding.
At-the-Market Offering Proceeds
The Company reports that during the three months ended March 31, 2014 and up to the date hereof, the Company sold in an at-the-market offering through Deutsche Bank Securities, as sales agent, an aggregate of 1,092,596 common shares at a weighted average sales price of $4.03, in connection with which the Company paid a total of $88 thousand of commissions to the sales agent corresponding to total net proceeds of $4.3 million.
Chairman and Chief Executive Officer's Comments
Symeon Palios, Chairman and CEO of Diana Containerships, commented: "After carefully considering the current containership charter market and vessel acquisition opportunities, management believes the Board's decision to reduce the cash dividend payable with respect to the first quarter is in the best interests of the Company and its shareholders and is consistent with the long-term strategy of maintaining a strong balance sheet and pursuing attractive vessel purchase opportunities as they arise. In taking this action, the Company expects to deploy its available cash to purchase additional containership vessels at currently attractive prices that will further enhance the Company's position to capitalize on the eventual recovery in the container market. The Company believes this action enhances long-term shareholder value and will evaluate future dividend decisions in light of then prevailing market conditions."
Fleet Employment Profile (As of May 13, 2014)
Currently Diana Containerships Inc.'s fleet is employed as follows:
Vessel BUILT TEU
Gross Rate (USD Per Day)
Delivery Date to Charterer
Redelivery Date to Owners***
Panamax Container Vessels
A.P. Moller - Maersk A/S
15-Sep-14 - 30-Nov-14
CMA CGM S.A.
1-Jun-14 - 13-Jun-14
(ex Cap San Marco)
Containerschiffe GmbH & Co. KG
23-Dec-14 - 23-Mar-15
(ex Cap San Raphael)
Containerschiffe GmbH & Co. KG
23-Dec-14 - 23-Mar-15
APL (Bermuda) Ltd.
(ex APL Sardonyx)
NOL Liner (Pte) Ltd.
20-Aug-15 - 19-Oct-15
Hanjin Shipping Co. Ltd.
30-Mar-16 - 15-May-16
Post - Panamax Container Vessels
23-Feb-15 - 23-Feb-16
20-Mar-15 - 20-Mar-16
* 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 Based on latest information.
3 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.
4 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.
5 Vessel chartered for a period of thirty-six (36) months plus or minus forty-five (45) days. The net daily charter hire rate will be US$22,750 during the first twelve (12) months, US$22,850 during the second twelve (12) months and US$23,250 during the third twelve (12) months of the charter.
6 Since December 28, 2012 charterers changed to NOL Liner (Pte) Ltd.
7 Vessel sold and delivered to its new owners on February 21, 2014.
8 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 March 31,
INCOME STATEMENT DATA (in thousands of US Dollars):
Time charter revenues, net of prepaid charter revenue amortization
Vessel operating expenses
Net income / (loss)
Average number of vessels
Number of vessels
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1)
Daily vessel operating expenses (2)
(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 and vessel registry, expenses relating to repairs and maintenance, the costs of spares and consumable stores, lubricant costs, tonnage taxes, regulatory fees, environmental compliance costs 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, May 13, 2014.