ATHENS, Greece, Feb. 13, 2017 (GLOBE NEWSWIRE) -- Diana Containerships Inc. (NASDAQ:DCIX), (the “Company”), a global shipping company specializing in the ownership of containerships, today reported a net loss of $8.5 million for the fourth quarter of 2016, compared to a net loss of $8.8 million for the respective period of 2015. The loss for the fourth quarter of 2016 includes $2.4 million of direct sale and other charges associated with the disposal of one vessel, without which the result for the quarter would have been a net loss of $6.1 million. The loss for the fourth quarter of 2015 includes $6.6 million of impairment charges of one vessel, without which the result for the quarter would have been a net loss of $2.2 million.
Time charter revenues, net of prepaid charter revenue amortization, were $5.4 million for the fourth quarter of 2016, compared to $14.9 million for the same period of 2015, mainly due to reduced employment opportunities and time charter rates.
Net loss for the year ended December 31, 2016, amounted to $149.0 million, compared to a net loss of $17.5 million for the year ended December 31, 2015. The loss for 2016 includes $118.9 million of impairment charges for seven of the Company’s vessels and $2.9 million of direct sale and other charges for two vessels, without which the result for the period would have been a net loss of $27.2 million. The loss for the year ended December 31, 2015, includes $8.3 million of direct sale and other charges associated with the disposal of one vessel and $6.6 million of impairment charges of another vessel, without which the result for the period would have been a net loss of $2.6 million. Time charter revenues, net of prepaid charter revenue amortization, for the year ended December 31, 2016, amounted to $33.2 million, compared to $62.2 million for the year ended December 31, 2015.
| Fleet Employment Profile (As of February [10], 2017) | |||||||||
| Diana Containerships Inc.’s fleet is employed as follows: | |||||||||
| Vessel | Sister Ships* | Gross Rate (USD Per Day) | Com** | Charterers | Delivery Date to Charterers*** | Redelivery Date to Owners**** | Notes | ||
| BUILT TEU | |||||||||
| 6 Panamax Container Vessels | |||||||||
| SAGITTA | A | $ | 5,850 | 3.50 | % | CMA CGM | 27-Jan-16 | 24-Jan-17 | |
| $ | 5,775 | 3.50 | % | 24-Jan-17 | 24-Mar-17 - 24-May-17 | 1 | |||
| 2010 3,426 | |||||||||
| CENTAURUS | A | ||||||||
| $ | 5,500 | 3.50 | % | CMA CGM | 22-Nov-16 | 22-Feb-17 - 22-Aug-17 | 2 | ||
| 2010 3,426 | |||||||||
| ANGELES | B | $ | 21,000 | US$350 per day | Yang Ming (UK) Ltd. | 9-Apr-15 | 19-Oct-16 | 3,4 | |
| (ex YM Los Angeles) | |||||||||
| 2006 4,923 | |||||||||
| NEW JERSEY | B | - | - | - | - | - - - | 5 | ||
| (ex YM New Jersey) | |||||||||
| 2006 4,923 | |||||||||
| PAMINA | - | - | - | - | - - - | 6 | |||
| (ex Santa Pamina) | |||||||||
| 2005 5,042 | |||||||||
| DOMINGO | C | $ | 6,150 | 3.50 | % | CMA CGM | 11-Apr-16 | 18-Jan-17 | 7 |
| (ex Cap Domingo) | |||||||||
| $ | 6,000 | 5.00 | % | Nile Dutch Africa Line B.V. | 1-Mar-17 | 26-Apr-17 - 1-Jan-18 | 8,9 | ||
| 2001 3,739 | |||||||||
| CAP DOUKATO | C | $ | 6,250 | 3.75 | % | Rudolf A. Oetker KG | 23-Jan-16 | 16-Feb-17 | 10,11,12 |
| (ex Cap San Raphael) | |||||||||
| - | - | VASI Shipping Pte. Ltd. | 20-Feb-17 | 9-Apr-17 - 16-Apr-17 | 8,13,14 | ||||
| 2002 3,739 | |||||||||
| 6 Post - Panamax Container Vessels | |||||||||
| PUELO | D | $ | 6,500 | 3.75 | % | MSC-Mediterranean Shipping Co. S.A., Geneva | 17-May-16 | 17-Apr-17 - 17-Jun-17 | 15 |
| 2006 6,541 | |||||||||
| PUCON | D | - | - | - | - | - - - | 16 | ||
| 2006 6,541 | |||||||||
| MARCH | E | $ | 6,075 | 5.00 | % | SeaGo Line A/S | 3-Jul-16 | 7-Feb-17 | 7,17 |
| (ex YM March) | |||||||||
| $ | 6,850 | 1.25 | % | Hapag-Lloyd AG | 23-Feb-17 | 23-Nov-17 - 23-Apr-18 | 8,18 | ||
| 2004 5,576 | |||||||||
| GREAT | E | - | - | - | - | - - - | 19 | ||
| (ex YM Great) | |||||||||
| 2004 5,576 | |||||||||
| HAMBURG | F | $ | 6,350 | 5.00 | % | Maersk Line A/S | 31-May-16 | 14-Nov-16 | |
| 2009 6,494 | $ | 6,700 | 3.50 | % | CMA CGM | 9-Jan-17 | 9-Mar-17 - 9-Dec-17 | ||
| ROTTERDAM | F | ||||||||
| $ | 6,200 | 5.00 | % | Maersk Line A/S | 27-Apr-16 | 20-Feb-17 - 10-Mar-17 | 20,21 | ||
| 2008 6,494 | |||||||||
| * Each container vessel is a "sister ship", or closely similar, to other container vessels that have the same letter. | |||||||||
| ** Total commission paid to third parties. | |||||||||
| *** In case of newly acquired vessel with time charter attached, this date refers to the expected/actual date of delivery of the vessel to the Company. | |||||||||
| **** Range of redelivery dates, with the actual date of redelivery being at the Charterers’ option, but subject to the terms, conditions, and exceptions of the particular charterparty. | |||||||||
| 1 In January 2017, the Company agreed to extend as from January 24, 2017 the previous charter party with CMA CGM for a period of minimum 2 months to maximum 4 months at a gross charter rate of US$5,775 per day. | |||||||||
| 2 Vessel on unscheduled maintenance from September 19, 2016 to November 16, 2016. | |||||||||
| 3 For financial reporting purposes, an asset is recognized upon the delivery of the vessel which represents the difference between the current fair market value of the charter and the net present value of future contractual cash flows. This asset is amortized over the period of the time charter agreement and is set off against the corresponding revenues during the same period. | |||||||||
| 4 "Angeles" sold and delivered to her new owners on November 15, 2016. | |||||||||
| 5 As of October 11, 2016, vessel has been placed on lay-up, in Malaysia. | |||||||||
| 6 As of October 10, 2016, vessel has been placed on lay-up, in Malaysia. | |||||||||
| 7 Currently without an active charterparty. | |||||||||
| 8 Estimated delivery date to the charterers. | |||||||||
| 9 The Company has the option to withdraw the vessel any time after the completion of the first 6 months charter period against a 60 day Notice of Withdrawal from service to be tendered from Owners earliest 4 months after delivery. | |||||||||
| 10 In January 2016, the Company agreed to extend as from January 23, 2016 the previous charter party with Rudolf A. Oetker KG for a period of minimum 3 months to maximum 12 months at a gross charter rate of US$6,250 per day. | |||||||||
| 11 As per addendum dated November 14, 2016, owners and charterers mutually agreed to extend the maximum redelivery date from January 23, 2017 to February 25, 2017. | |||||||||
| 12 Estimated redelivery date from the charterers. | |||||||||
| 13 Redelivery dates based on an estimated time charter trip duration of about 48-55 days. | |||||||||
| 14 Repositioning trip. Charterers to supply 1600 mts IFO 380 cst and 85 mts MGO for SECA areas fuel at the time of delivery. This will be the maximum required quantity on charterers' account for the trip from UK / Continent upto redelivery China. In case that vessel will burn less quantities than the supplied ones then Company to refund charterers with the difference between the supplied and the actual consumed quantity. After 54 days, charterers will pay US$5,500 per day until redelivery of the vessel. Total commission paid to third parties US$5,000. | |||||||||
| 15 The charterer has the option to further employ the vessel for a twelve (12) month period, at a gross charter rate of US$8,600 per day starting twelve (12) months after delivery of the vessel to the charterer. After that period the charterer has the option to employ the vessel for a further twelve (12) month period, at a gross charter rate of US$20,000 starting twenty-four (24) months after delivery of the vessel to the charterer. Charterer has the option to employ the vessel for plus or minus thirty (30) days on final declaration. All gross charter rates include a 3.75% commission paid to third parties. Options must be declared by the charterer not later than nine (9) months for the first option and twenty (20) months for the second option after the delivery of the vessel to the charterer. | |||||||||
| 16 As of July 27, 2016, vessel has been placed on lay-up, in Malaysia. | |||||||||
| 17 The charter rate commenced 10 days after the delivery of the vessel to the charterers. | |||||||||
| 18 Charterers will pay US$1 per day for the first 15 days of the charter period. | |||||||||
| 19 As of September 27, 2016, vessel has been placed on lay-up, in Malaysia. | |||||||||
| 20 Based on latest information. | |||||||||
| 21 In March 2016, the Company agreed to extend as from April 27, 2016 (00:01) the previous charter party with Maersk Line A/S for a period of minimum 6 months to about 13 months at a gross charter rate of US$6,200 per day. | |||||||||
| Summary of Selected Financial & Other Data | |||||||||||||
| For the three months ended December 31, | For the years ended December 31, | ||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||
| STATEMENT OF OPERATIONS DATA (in thousands of US Dollars): | |||||||||||||
| Time charter revenues, net of prepaid charter revenue amortization | $ | 5,446 | $ | 14,891 | $ | 33,194 | $ | 62,180 | |||||
| Voyage expenses | 384 | 1,053 | 3,169 | 2,619 | |||||||||
| Vessel operating expenses | 5,517 | 8,967 | 30,213 | 35,847 | |||||||||
| Net loss | (8,459 | ) | (8,823 | ) | (149,014 | ) | (17,531 | ) | |||||
| FLEET DATA | |||||||||||||
| Average number of vessels | 12.5 | 13.5 | 13.1 | 12.6 | |||||||||
| Number of vessels | 12.0 | 14.0 | 12.0 | 14.0 | |||||||||
| Ownership days | 1,150 | 1,242 | 4,780 | 4,600 | |||||||||
| Available days | 1,150 | 1,242 | 4,735 | 4,515 | |||||||||
| Operating days | 654 | 1,038 | 3,304 | 4,155 | |||||||||
| Fleet utilization | 56.9 | % | 83.6 | % | 69.8 | % | 92.0 | % | |||||
| AVERAGE DAILY RESULTS | |||||||||||||
| Time charter equivalent (TCE) rate (1) | $ | 4,402 | $ | 11,142 | $ | 6,341 | $ | 13,192 | |||||
| Daily vessel operating expenses (2) | $ | 4,797 | $ | 7,220 | $ | 6,321 | $ | 7,793 | |||||
_____________________
(1) Time charter equivalent rates, or TCE rates, are defined as our time charter revenues, net, less voyage expenses during a period divided by the number of our available days during the period, which is consistent with industry standards. Voyage expenses include port charges, bunker (fuel) expenses, canal charges and commissions. TCE is a non-GAAP measure. TCE rate is a standard shipping industry performance measure used primarily to compare daily earnings generated by vessels on time charters with daily earnings generated by vessels on voyage charters, because charter hire rates for vessels on voyage charters are generally not expressed in per day amounts while charter hire rates for vessels on time charters are generally expressed in such amounts.
(2) Daily vessel operating expenses, which include crew wages and related costs, the cost of insurance and vessel registry, expenses relating to repairs and maintenance, the costs of spares and consumable stores, lubricant costs, tonnage taxes, regulatory fees, environmental costs, lay-up expenses and other miscellaneous expenses, are calculated by dividing vessel operating expenses by ownership days for the relevant period.
Conference Call and Webcast Information
The Company’s management will conduct a conference call and simultaneous Internet webcast to review these results at 9:00 A.M. (Eastern Time) on Monday, February 13, 2017.
Investors may access the webcast by visiting the Company’s website at www.dcontainerships.com, and clicking on the webcast link. The conference call also may be accessed by telephone by dialing 1-877-407-8029 (for U.S.-based callers) or 1-201-689-8029 (for international callers), and asking the operator for the Diana Containerships Inc. conference call.
A replay of the webcast will be available soon after the completion of the call and will be accessible for 30 days on www.dcontainerships.com. A telephone replay also will be available for 30 days by dialing 1-877-660-6853 (for U.S.-based callers) or 1-201-612-7415 (for international callers), and providing the Replay ID number 13653029.
About the Company
Diana Containerships Inc. is a global provider of shipping transportation services through its ownership of containerships. The Company’s vessels are employed primarily on time charters with leading liner companies carrying containerized cargo along worldwide shipping routes.
Cautionary Statement Regarding Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for containership capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessel breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
(See financial tables attached)
| DIANA CONTAINERSHIPS INC. | |||||||||||||
| FINANCIAL TABLES | |||||||||||||
| Expressed in thousands of U.S. Dollars, except for share and per share data | |||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
| For the three months ended December 31, | For the years ended December 31, | ||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||
| REVENUES: | (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Time charter revenues | $ | 5,548 | $ | 16,616 | $ | 36,992 | $ | 70,746 | |||||
| Prepaid charter revenue amortization | (102 | ) | (1,725 | ) | (3,798 | ) | (8,566 | ) | |||||
| Time charter revenues, net | 5,446 | 14,891 | 33,194 | 62,180 | |||||||||
| EXPENSES: | |||||||||||||
| Voyage expenses | 384 | 1,053 | 3,169 | 2,619 | |||||||||
| Vessel operating expenses | 5,517 | 8,967 | 30,213 | 35,847 | |||||||||
| Depreciation and amortization of deferred charges | 2,037 | 3,619 | 12,740 | 13,140 | |||||||||
| General and administrative expenses | 1,786 | 1,808 | 7,241 | 6,194 | |||||||||
| Impairment losses | - | 6,607 | 118,861 | 6,607 | |||||||||
| Loss on vessels' sale | 2,402 | - | 2,899 | 8,300 | |||||||||
| Foreign currency losses / (gains) | (32 | ) | 32 | 111 | (55 | ) | |||||||
| Operating loss | (6,648 | ) | (7,195 | ) | (142,040 | ) | (10,472 | ) | |||||
| OTHER INCOME / (EXPENSES): | |||||||||||||
| Interest and finance costs | (1,835 | ) | (1,643 | ) | (7,094 | ) | (7,166 | ) | |||||
| Interest income | 24 | 15 | 120 | 107 | |||||||||
| Total other expenses, net | (1,811 | ) | (1,628 | ) | (6,974 | ) | (7,059 | ) | |||||
| Net loss | $ | (8,459 | ) | $ | (8,823 | ) | $ | (149,014 | ) | $ | (17,531 | ) | |
| Loss per common share, basic and diluted * | $ | (0.92 | ) | $ | (0.97 | ) | $ | (16.28 | ) | $ | (1.92 | ) | |
| Weighted average number of common shares, basic and diluted* | 9,160,297 | 9,114,754 | 9,150,574 | 9,109,555 | |||||||||
| * Adjusted to give effect to the 1 for 8 reverse stock split that became effective on June 9, 2016. | |||||||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||||||||||||
| For the three months ended December 31, | For the years ended December 31, | ||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | |||||||||||
| Net loss | $ | (8,459 | ) | $ | (8,823 | ) | $ | (149,014 | ) | $ | (17,531 | ) | |
| Other comprehensive income / (loss) (Actuarial gain / (loss)) | (25 | ) | 73 | (25 | ) | 73 | |||||||
| Comprehensive loss | $ | (8,484 | ) | $ | (8,750 | ) | $ | (149,039 | ) | $ | (17,458 | ) | |
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||
| (Expressed in thousands of US Dollars) | |||||
| 2016 | 2015** | ||||
| ASSETS | |||||
| Cash, cash equivalents and restricted cash | $ | 17,316 | $ | 38,388 | |
| Vessels' net book value | 240,352 | 384,549 | |||
| Other fixed assets, net | 946 | 987 | |||
| Prepaid charter revenue | - | 3,798 | |||
| Other assets | 7,917 | 8,001 | |||
| Total assets | $ | 266,531 | $ | 435,723 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Bank debt, net of unamortized deferred financing costs | $ | 127,129 | $ | 142,678 | |
| Related party financing | 45,617 | 48,950 | |||
| Other liabilities | 2,905 | 4,921 | |||
| Total stockholders' equity | 90,880 | 239,174 | |||
| Total liabilities and stockholders' equity | $ | 266,531 | $ | 435,723 | |
| ** The balance sheet data as of December 31, 2015 has been derived from the audited consolidated financial statements at that date. | |||||
| OTHER FINANCIAL DATA | |||||||||||||
| For the three months ended December 31, | For the years ended December 31, | ||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | |||||||||||
| Net Cash provided by / (used in) Operating Activities | $ | (5,571 | ) | $ | 4,500 | $ | (11,963 | ) | $ | 17,445 | |||
| Net Cash provided by / (used in) Investing Activities | 6,273 | (34,777 | ) | 10,574 | (111,751 | ) | |||||||
| Net Cash provided by/ (used in) Financing Activities | - | 20,753 | (19,683 | ) | 41,691 | ||||||||