d1430151_6-k.htm
FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2013
Commission File Number: 001-35025

DIANA CONTAINERSHIPS INC.
(Translation of registrant's name into English)
Pendelis 16, 175 64 Palaio Faliro, Athens, Greece
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F [X]       Form 40-F [  ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [  ].

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [  ].

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.


 
 
 

INFORMATION CONTAINED IN THIS FORM 6-K REPORT

Attached to this Report on Form 6-K as Exhibit 99.1 is a press release dated November 14, 2013 of Diana Containerships Inc. (the "Company") announcing the financial results for the third quarter ended September 30, 2013.

The information contained in this Report on Form 6-K is hereby incorporated by reference into the Company's registration statement on Form F-3 (File no. 333-179636) filed with the U.S. Securities and Exchange Commission with an effective date of March 21, 2012.


 
 
 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

DIANA CONTAINERSHIPS INC.
(registrant)


Dated: November 15, 2013
By:
/s/ Andreas Michalopoulos
 
 
Andreas Michalopoulos
 
 
Chief Financial Officer and Treasurer


 
 
 

EXHIBIT 99.1


Corporate Contact:
Ioannis Zafirakis
Director, Chief Operating Officer and Secretary
Telephone: + 30-216-600-2400
Email: izafirakis@dcontainerships.com
Website: www.dcontainerships.com

For Immediate Release
Investor and Media Relations:
Edward Nebb
Comm-Counsellors, LLC
Telephone: + 1-203-972-8350
Email: enebb@optonline.net
 




DIANA CONTAINERSHIPS INC. REPORTS FINANCIAL RESULTS
FOR THE THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2013

DECLARES CASH DIVIDEND OF $0.15 PER SHARE
FOR THE THIRD QUARTER


ATHENS, GREECE, November 14, 2013 – Diana Containerships Inc. (NASDAQ: DCIX), a global shipping company specializing in the ownership of containerships, today reported a net loss of $0.7 million for the third quarter of 2013, compared to net income of $1.6 million for the respective period of 2012.
 
Time charter revenues, net of prepaid charter revenue amortization, were $11.1 million for the third quarter of 2013, compared to $14.6 million for the same period of 2012, mainly due to reduced average time charter rates and the decrease in ownership days in 2013 compared to 2012, resulting from the disposal of the vessels Madrid, Malacca and Merlion in May and June 2013, which was partly offset by the addition to the Company's fleet of the vessels APL Garnet, delivered in November 2012, and Hanjin Malta, Puelo and Pucon, delivered in March, August and September 2013, respectively.
 
Net loss for the nine months ended September 30, 2013 amounted to $37.6 million, as a result of an impairment loss and other direct sale charges totalling $36.9 million for the vessels Madrid, Malacca and Merlion, without which the result for the nine months ended September 30, 2013 would be a loss of $0.7 million, compared to net income of $5.7 million for the same period of 2012. Time charter revenues, net of prepaid charter revenue amortization, were $38.5 million for the nine months ended September 30, 2013, compared to $42.0 million for the respective period in 2012.
 
Dividend Declaration
 
The Company has declared a cash dividend on its common stock of $0.15 per share with respect to the third quarter of 2013. The cash dividend will be payable on or around December 18, 2013 to all shareholders of record as at November 29, 2013. The Company has 33,983,160 shares of common stock outstanding.
 

 
 
 


Fleet Employment Profile (As of November 14, 2013)
 
Currently Diana Containerships Inc.'s fleet is employed as follows:
 
 
 
 
 
 
 
 
 
Vessel
Sister Ships*
Gross Rate (USD Per Day)
Com**
Charterer
Delivery Date to Charterer
Redelivery Date to Owners***
Notes
BUILT    TEU
Panamax Container Vessels
 
 
 
 
 
 
 
 
SAGITTA
A
$7,250
1.25%
A.P. Moller - Maersk A/S
15-Mar-13
1-Jan-14 - 15-Feb-14
 
2010    3,426
 
 
 
 
 
 
CENTAURUS
A
$7,500
3.50%
CMA CGM S.A.
13-Aug-12
13-Feb-14 - 13-Jun-14
1
2010   3,426
 
 
 
 
 
 
 
CAP DOMINGO
B
$22,850
0%
Reederei Santa Containerschiffe GmbH & Co. KG
6-Feb-13
6-Feb-14
2,3
(ex Cap San Marco)
 
 
 
 
 
2001   3,739
 
$23,250
6-Feb-14
23-Dec-14 - 23-Mar-15
 
CAP DOUKATO
B
$22,850
0%
Reederei Santa Containerschiffe GmbH & Co. KG
6-Feb-13
6-Feb-14
2,3
(ex Cap San Raphael)
 
 
 
 
 
2002   3,739
 
$23,250
6-Feb-14
23-Dec-14 - 23-Mar-15
 
APL SARDONYX
C
$24,750
1.00%
APL (Bermuda) Ltd.
17-Feb-12
3-Jan-14 - 3-Apr-14
3,4
1995   4,729
 
 
 
 
 
 
 
APL GARNET
C
$27,000
0%
NOL Liner (Pte) Ltd.
19-Nov-12
20-Aug-15 - 19-Oct-15
3
1995   4,729
 
 
 
 
 
 
 
APL SPINEL
C
$24,750
1.00%
APL (Bermuda) Ltd.
1-Mar-12
15-Jan-14 - 15-Apr-14
3,4
1996   4,729
 
 
 
 
 
 
 
HANJIN MALTA
 
$25,550
US$150 per day
Hanjin Shipping Co. Ltd.
15-Mar-13
30-Mar-16 - 15-May-16
3
1993   4,024
 
 
 
 
 
 
 
 
 
 
 
 
 
Post - Panamax Container Vessels
 
 
 
 
 
 
 
 
PUELO
D
$27,900
US$150 per day
CSAV Valparaiso
23-Aug-13
23-Feb-15 - 23-Feb-16
5
2006   6,541
 
 
 
 
 
 
PUCON
D
$27,900
US$150 per day
CSAV Valparaiso
20-Sep-13
20-Mar-15 - 20-Mar-16
5
2006   6,541
 
 
 
 
 
 
* 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.
*** Charterers' optional period to redeliver the vessel to owners. Charterers have the right to add the off hire days, if any, and therefore the optional period may be extended.
1 On June 7, 2013, the Company agreed to extend as from August 13, 2013 the initially signed charter party with CMA CGM S.A., dated August 2, 2012 for a period of minimum 6 months to maximum 10 months.
2 For financial reporting purposes, we recognize revenue from time charters that have varying rates on a straight-line basis equal to the average revenue during the term of that time charter. We calculate quarterly dividends based on the available cash from operations during the relevant quarter.
3 For financial reporting purposes, revenues derived from the time charter agreement will be netted off during the term of the time charter with an amortization charge of the asset that was recognized at the delivery of the vessel, being the difference of the present value of the contractual cash flows to the fair value. However, we calculate quarterly dividends based on the available cash from operations during the relevant quarter.
4 Since December 28, 2012 charterers have changed to NOL Liner (Pte) Ltd.
5 In case the vessel is redelivered to the Company in any period between the earliest and the maximum redelivery period after delivery, then the charterers will pay a lump sum equivalent to US$6,000 per day to the owners for the outstanding period between the redelivery date and up to the 30 months.

 
 
 


Summary of Selected Financial & Other Data
  
 
  
For the three months ended September 30,
    
For the nine months ended
September 30,
  
 
  
2013
    
2012
    
2013
    
2012
  
 
  
(unaudited)
    
(unaudited)
    
(unaudited)
    
(unaudited)
  
INCOME STATEMENT DATA (in thousands of US Dollars):
  
Time charter revenues, net of prepaid charter revenue amortization
   $ 11,131     $ 14,606     $ 38,513     $ 41,993  
Voyage expenses
     110       366       527       1,029  
Vessel operating expenses
     6,897       7,410       23,557       20,160  
Net income / (loss)
     (718 )     1,591       (37,562 )     5,698  
FLEET DATA
  
Average number of vessels
     8.5       9.0       9.6       8.3  
Number of vessels
     10.0       9.0       10.0       9.0  
Ownership days
     786       828       2,608       2,285  
Available days
     786       828       2,608       2,285  
Operating days
     784       827       2,538       2,280  
Fleet utilization
     99.7 %     99.9 %     97.3 %     99.8 %
AVERAGE DAILY RESULTS
  
Time charter equivalent (TCE) rate (1)
   $ 14,022     $ 17,198     $ 14,565     $ 17,927  
Daily vessel operating expenses (2)
   $ 8,775     $ 8,949     $ 9,033     $ 8,823  

 
 
____________________
 
(1)
Time charter equivalent rates, or TCE rates, are defined as our time charter revenues 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 and other miscellaneous expenses, are calculated by dividing vessel operating expenses by ownership days for the relevant period.

Conference Call and Webcast Information

Diana Containerships Inc. will conduct a conference call and simultaneous Internet webcast to review these results at 9:00 A.M. (Eastern Time) on Thursday, November 14, 2013.
 
 
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 422644.


 
 
 


About the Company
 
Diana Containerships Inc. is a Marshall Islands corporation founded in 2010 to own containerships and pursue containership acquisition opportunities. Diana Containerships Inc. intends to continue to capitalize on investment opportunities by purchasing additional containerships in the secondhand market, from other companies, shipyards and lending institutions, and may also enter into newbuilding contracts with shipyards for new containerships.

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, vessels 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
  
 
  
 
    
 
    
 
    
 
  
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
  
 
  
 
    
 
    
 
    
 
  
 
  
For the three months ended September 30,
    
For the nine months ended September 30,
  
 
  
2013
    
2012
    
2013
    
2012
  
REVENUES:
  
 
    
 
    
 
    
 
  
Time charter revenues
   $ 16,350     $ 17,977     $ 53,441     $ 50,290  
Prepaid charter revenue amortization
     (5,219 )     (3,371 )     (14,928 )     (8,297 )
Time charter revenues, net
     11,131       14,606       38,513       41,993  
 
                                
EXPENSES:
                                
Voyage expenses
     110       366       527       1,029  
Vessel operating expenses
     6,897       7,410       23,557       20,160  
Depreciation
     2,412       3,244       8,118       9,140  
Management fees
     -       405       305       1,125  
General and administrative expenses
     1,182       865       3,851       2,700  
Impairment losses
     -       -       32,626       -  
Loss on vessels' sale
     -       -       4,271       -  
Foreign currency losses / (gains)
     7       (37 )     68       (102 )
Operating income / (loss)
     523       2,353       (34,810 )     7,941  
 
                                
OTHER INCOME / (EXPENSES):
                                
Interest and finance costs
     (1,268 )     (779 )     (2,812 )     (2,294 )
Interest Income
     27       17       60       51  
Total other expenses, net
     (1,241 )     (762 )     (2,752 )     (2,243 )
 
                                
Net income / (loss)
   $ (718 )   $ 1,591     $ (37,562 )   $ 5,698  
 
                                
Earnings  / (loss) per common share, basic and diluted
   $ (0.02 )   $ 0.05     $ (1.14 )   $ 0.22  
 
                                
Weighted average number of common shares, basic and diluted
     33,863,517       29,645,316       32,809,180       25,196,124  
 
                                
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS)
  
 
                                
 
  
For the three months ended September 30,
    
For the nine months ended September 30,
  
 
     2013       2012       2013       2012  
 
                                
Net income / (loss)
   $ (718 )   $ 1,591     $ (37,562 )   $ 5,698  
 
                                
Comprehensive income / (loss)
   $ (718 )   $ 1,591     $ (37,562 )   $ 5,698  
 
                                

 
 
 


UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET DATA
    
 
  
(Expressed in thousands of US Dollars)
    
 
  
 
  
September 30, 2013
    
December 31, 2012
  
ASSETS
  
 
    
 
  
 
  
 
    
 
  
 Cash and cash equivalents
   $ 3,510     $ 31,526  
 Other current assets
     3,587       5,386  
 Vessels' net book value
     298,228       260,945  
 Other fixed assets, net
     351       -  
 Restricted cash
     9,870       9,270  
 Prepaid charter revenue
     23,544       29,918  
Total assets
   $ 339,090     $ 337,045  
 
                
LIABILITIES AND STOCKHOLDERS' EQUITY
                
 
                
 Current liabilities
   $ 5,085     $ 6,110  
 Long-term bank debt, net of unamortized deferred financing costs
     98,052       91,906  
 Related party financing, non-current
     50,073       -  
 Other non-current liabilities
     131       271  
 Total stockholders' equity
     185,749       238,758  
Total liabilities and stockholders' equity
   $ 339,090     $ 337,045  

OTHER FINANCIAL DATA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the three months ended September 30,
 
For the nine months ended September 30,
 
 
 
2013
 
2012
 
2013
 
2012
 
 
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
 Net Cash provided by Operating Activities
$
 6,474
$
 9,134
$
 22,069
$
 24,449
 Net Cash used in Investing Activities
 
 (93,445)
 
 -
 
 (89,691)
 
 (119,873)
 Net Cash provided by Financing Activities
 
 52,519
 
 44,244
 
 39,606
 
 118,443