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.
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.
