Friday, November 16, 2012

Diana Containerships Inc. - Earnings Estimate For 2012 Q3

For the quarter ended September 30th, 2012, we estimate that Diana Containerships Inc. (NASDAQ: DCIX) generated net income of $2,000,000 or $0.07 basic earnings per common share. We also estimate that TCE revenues were $14,500,000 and the net average TCE rate was $17,500.

As of September 30th, 2012, we estimate that the company had a total book capitalization of $341,9 million, including debt outstanding of $92.7 million. The debt to capitalization ratio stood at 27.1%. Following the secondary offering of 9,115,803 shares during the quarter (at a gross price per share of $6.25), we estimate that DCIX had approximately $65 million cash on hand (excluding restricted cash of $9.2 million) as of September 30th, 2012.

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 $8,600,000. 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 a fleet of nine panamax containerships, with an aggregate capacity of 37,422 TEU, and an average age of 14.2 years as of September 30th, 2012.

The company recently announced the acquisition of a 1995-built panamax containership, for a purchase price of $30 million. The vessel will be delivered to the company on November 19th, 2012.

Based on yesterday’s closing price of $5.33 per share, the company has a market capitalization of $171.6 million.

No comments:

Post a Comment