Tuesday, July 31, 2012

Diana Containerships Inc. - Earnings Estimate For 2012 Q2

For the quarter ended June 30th, 2012, we estimate that Diana Containerships Inc. (NASDAQ: DCIX) generated net income of $2,100,000 or $0.09 basic earnings per common share. We also estimate that TCE Revenues were $14,900,000 and the net average TCE rate was $18,200.

As of June 30th, 2012, we estimate that the company had a total book capitalization of $294.4 million, including debt outstanding of $92.7 million. The debt to capitalization ratio stood at 31.5%. We also estimate that DCIX had $21 million cash on hand (including restricted cash of $9.2 million) as of the end of the quarter.

Based on the company’s revised dividend policy, DCIX intends to declare a variable quarterly dividend equal to its operating cash flow minus any cash expenses and reserves for vessel dry-dock maintenance and special surveys. According to our estimates for the quarter, the company generated cash from operations of $8,700,000. On this basis, we forecast that DCIX will declare a quarterly dividend of $0.30 per share as per the company’s official guidance.

Diana Containerships owns & operates a fleet of nine panamax containerships, with an aggregate capacity of 37,422 TEU, and an average age of 14.0 years as of June 30th, 2012.

In July 2012, DCIX issued 8,100,000 shares in a public offering at $6.25 per share, raising gross proceeds of $50,625,000. Following the offering, Diana Shipping Inc. (NYSE: DSX) will have a 10.7% ownership stake in the company.

Based on yesterday’s close price of $6.08 per share, we estimate that DCIX has a market capitalization of $190 million and an enterprise value of $213 million.