Baltic Trading Limited – Earnings Estimate For 2011 Q4

For the quarter ended December 31st, 2011, we estimate that Baltic Trading Limited (NYSE: BALT) generated net income of $2,000,000 or $0.09 basic earnings per share. We estimate that the company’s net TCE revenues for the quarter were $12,800,000 & the fleet average TCE was $15,500. We also estimate that during the fourth quarter of 2011 BALT generated EBITDA of $6,900,000.

As of December 31st, 2011, we estimate that the company had $101,250,000 in debt outstanding and a total book capitalization of $383,000,000. Its debt to capitalization ratio stood at 26.4%. We also estimate that the company had cash on hand of $9,000,000. BALT had a remaining $40,000,000 under its amended 2010 credit facility, to finance future vessel acquisitions and for working capital purposes.

The company has in the past declared variable quarterly dividends based on cash available for distribution, but also after taking into account the company’s cash flow & liquidity and capital resources. Based on cash available for distribution, we estimate that the company has the capacity to declare a quarterly dividend of $0.11 per share. In the previous three quarters BALT had declared dividends in excess of cash available for distribution. But given the rapid deterioration of spot freight markets year-to-date, with spot rates at or near cash operating levels, the company may decide to preserve some capital for future dividend distributions.

Based on today’s closing price of $4.23 per share, we estimate that BALT has a market capitalization of $96,000,000 and an enterprise value of $188,000,000.

BALT operates a modern diversified fleet of 9 dry cargo vessels, consisting of 3 handy size vessels, 4 supramax size vessels and two cape size vessels, with a total DWT capacity of approximately 672,000 MT, and an average age of 2.2 years as of December 31st, 2011.

Navios Maritime Partners L.P. - Earnings Estimate For 2011 Q4

For the quarter ended December 31st, 2011, we estimate that Navios Maritime Partners L.P. (NYSE: NMM) generated net income of $18,400,000. We estimate that the earnings attributable to common unit holders were $16,410,000 or $0.35 earnings per common unit. We also estimate that TCE Revenues for the quarter were $49,800,000 and the average TCE rate was $30,450.

Navios Maritime Partners operates a fleet of 18 vessels with an aggregate DWT capacity of 1,945,000 MT and an average age of 7.17 years as of December 31st, 2011. NMM owns sixteen of the 18 vessels in the fleet and operates the remaining two on long-term operating leases with purchase options. On January 24th, 2011, NMM declared a quarterly cash distribution of $0.44 per unit, unchanged from the previous quarter.

Diana Containerships Inc. - Earnings Estimate For 2011 Q4

For the quarter ended December 31st, 2011, we estimate that Diana Containerships Inc. (NASDAQ: DCIX) generated net income of $2,750,000 or $0.12 basic earnings per common share. We also estimate that TCE Revenues for the quarter were $9,500,000 and the net average TCE rate was $20,700.

As of December 31st, 2011, we estimate that the company had a total book capitalization of $208 million. DCIX intends to declare a variable quarterly dividend equal to 70% of its operating cash flow. According to our estimates for the fourth quarter, the company generated cash from operations of $5,100,000. On this basis, we forecast that DCIX will declare a quarterly dividend of $0.15 per share, in line with the cash dividend declared for the previous quarter.

During the fourth quarter of 2011, the company announced the acquisition of two panamax containerships, with an average age of 10.4 years, for a total cost of $66,000,000. The company also entered into a $100 million revolving credit facility (with the option to increase the borrowing limit to $150 million).

On January 10th, 2012, DCIX also announced the acquisition of two additional panamax containerships, with an average age of 16.2 years, for a total cost of $60,000,000. All four vessels are scheduled for delivery during the first quarter of 2012.

Assuming that the company will utilize the full $100 million credit facility to finance its acquisition program, we project that DCIX will have a pro-forma capitalization of $308 million, a debt to capitalization ratio of 32% and remaining cash on hand of approximately $23 million.

Following the acquisition program, Diana Containerships will own a fleet of nine panamax containerships, with an aggregate capacity of 37,422 TEU, and an average age of 13.5 years. Diana Shipping Inc. (NYSE: DSX) maintains a 14.5% ownership share in the company.

The acquisition of the four vessels will greatly enhance the company’s ability to distribute dividends to the shareholders. Based on 70% of operating cash flow dividend payout ratio, we estimate that the company will have to capacity to double the quarterly dividend from the current level of $0.15 per share to $0.30 per share for fiscal year 2012.