Monday, October 24, 2011

Diana Containerships Inc. - Earnings Estimate For 2011 Q3

For the quarter ended September 30th, 2011, we estimate that Diana Containerships Inc. (NASDAQ: DCIX) generated net income of $2,450,000 or $0.11 basic earnings per common share. We also estimate that TCE Revenues for the quarter were $9,000,000 and the net average TCE rate was $19,560.

As of September 30th, 2011, we estimate that the company had a total book capitalization of $209 million. Following the company’s secondary offering at $7.50 per share in June 2011 (the company received net proceeds of approximately $121.5 million), DCIX repaid its bank loan and currently has no debt outstanding. We estimate that as of the end of the third quarter the company had $50.5 million cash on hand to finance future vessel acquisitions.

DCIX intends to declare a variable quarterly dividend equal to 70% of its operating cash flow. According to our estimates for the third quarter, the company generated cash from operations of $4,900,000. On this basis, we forecast that DCIX will declare a quarterly dividend of $0.15 per share.

Diana Containerships owns a fleet of two new building, intermediate size vessels and three older panamax vessels, with an aggregate capacity of 20,486 TEU. Diana Shipping Inc. (NYSE: DSX) has a 14.5% ownership in the company. Based on the company’s stock closing price of $5.39 per share on October 21st, 2011, we estimate that DCIX has an enterprise value of $74 million.