d1217356_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 August 2011
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 August 3, 2011 of Diana Containerships Inc. (the "Company") containing the Company's financial results for the second quarter and six months ended June 30, 2011 and declaring a cash dividend with respect to the second quarter of 2011.
 
 
 
 
 

 
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: August 3, 2011
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: + 30-210-947-0000
  
 
Email: izafirakis@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 SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2011
 
 
DECLARES CASH DIVIDEND OF $0.03 PER SHARE
FOR THE SECOND QUARTER



ATHENS, GREECE, August 3, 2011 – Diana Containerships Inc. (NASDAQ: DCIX), a global shipping company specializing in the transportation of containers, today reported net loss of $0.6 million for the second quarter of 2011 compared to a net loss of $1.7 million for the same period of 2010. Net loss to Diana Containerships Inc., for the six months ended June 30, 2011 amounted to $0.4 million, compared to net loss of $1.9 million for the period from January 7, 2010 (inception date) to June 30, 2010.
 
Dividend Declaration
 
The Company has declared a cash dividend on its common stock of $0.03 per share. The cash dividend will be payable on August 25, 2011 to all shareholders of record as at August 15, 2011. The Company has 23,076,161 shares of common stock outstanding.
 
 
 
 

Fleet Employment Profile (As of August 1, 2011)
 
Currently Diana Containerships' 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
Container Vessels
SAGITTA
A
$16,000
5.25%
A.P. Moller - Maersk A/S
30-Jun-10
15-May-11
 
2010    3,426
 
$22,000
2.25%
15-May-11
15-Mar-13 - 15-Jun-13
1
CENTAURUS
A
$20,000
2.25%
CSAV Valparaiso
4-Sep-10
21-Jul-12 - 19-Oct-12
 
2010   3,426
 
 
 
 
 
 
 
MAERSK MALACCA
B
$21,450
2.25%
A.P. Moller - Maersk A/S
24-Jun-11
10-May-13 - 8-Aug-13
2
1990   4,714
 
 
 
 
 
 
MAERSK MERLION
B
$21,450
2.25%
A.P. Moller - Maersk A/S
19-Jun-11
5-May-13 - 3-Aug-13
2
1990   4,714
 
 
 
 
 
 
MAERSK MADRID
 
$21,450
2.25%
A.P. Moller - Maersk A/S
15-Jun-11
1-May-13 - 30-Jul-13
2
1989   4,206
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*       Each container vessel is a "sister ship", or closely similar, to other container vessels that have the same letter.
**    Total commission as a percentage of charterhire paid to third parties and Diana Shipping Services S.A.
***  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 The charterer has the option to employ the vessel for a further 11-13 month period. The optional period, if exercised, must be declared on or before December 15, 2012 and can only commence on May 1, 2013 at a gross daily rate of $30,000.
2 The charterer has the option to employ the vessel for a further 12 month period, plus or minus 45 days at a gross daily rate of $25,000. The optional period, if exercised, must be declared on or before the end of the 20th month of employment and will only commence at the end of the 24th month.
 
 
 
 
 
 
Summary of Selected Financial & Other Data
              
   
Three Months Ended June 30,
    
Six Months
 Ended June 30,
    
For the period
 from January 7
 (inception date)
 to June 30,
  
   
2011
    
2010
    
2011
    
2010
  
   
(unaudited)
    
(unaudited)
    
(unaudited)
    
(unaudited)
  
INCOME STATEMENT DATA
                        
Time charter revenues
   $ 4,248,020     $ 1,322     $ 7,488,020     $ 1,322  
Voyage expenses
     138,525       25,114       254,625       25,114  
Vessel operating expenses
     1,821,362       375,549       2,775,584       375,549  
Net loss
     (645,739 )     (1,698,394 )     (388,910 )     (1,935,076 )
FLEET DATA
                                
Average number of vessels
     2.4       -       2.2       -  
Number of vessels
     5.0       1.0       5.0       1.0  
Weighted average age of fleet (in years)
     14.5       -       14.5       -  
Ownership days
     220       1       400       1  
Available days
     220       1       400       1  
Operating days
     214       -       394       -  
Fleet utilization
     97.3 %     -       98.5 %     -  
AVERAGE DAILY RESULTS
                                
Time charter equivalent (TCE) rate (1)
   $ 18,680     $ -     $ 18,083     $ -  
Daily vessel operating expenses (2)
   $ 8,279     $ -     $ 6,939     $ -  

 
(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, expenses relating to repairs and maintenance, the costs of spares and consumable stores, tonnage taxes 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 Wednesday, August 3, 2011.
 
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 on www.dcontainerships.com.  A telephone replay will be available by dialing 1-877-660-6853 (for U.S.-based callers) or 1-201-612-7415 (for international callers), and providing the Account number 391 and Replay ID number 375456.


 
 
 
About the Company
 
Diana Containerships Inc. is a Marshall Islands corporation founded in 2010 to own and operate 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 U.S. Dollars, except for share data
  
                         
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
  
   
For the three months ended June 30,
    
For the six
months ended
    
For the period
 from January 7
(inception date) to
  
   
2011
    
2010
    
June 30, 2011
    
June 30, 2010
  
REVENUES:
                        
Time charter revenues
   $ 4,248,020     $ 1,322     $ 7,488,020     $ 1,322  
                                 
EXPENSES:
                                
Voyage expenses
     138,525       25,114       254,625       25,114  
Vessel operating expenses
     1,821,362       375,549       2,775,584       375,549  
Depreciation
     935,727       7,886       1,659,498       7,886  
Management fees
     110,000       23,000       200,000       23,000  
General and administrative expenses
     942,971       1,553,444       1,794,287       1,789,977  
Foreign currency losses / (gains)
     (5,562 )     (242,639 )     453       (242,490 )
Operating income / (loss)
     304,997       (1,741,032 )     803,573       (1,977,714 )
                                 
OTHER INCOME / (EXPENSES):
                                
Interest and finance costs
     (992,517 )     -       (1,256,067 )     -  
Interest Income
     41,781       42,638       63,584       42,638  
Other income / (loss)
     (950,736 )     42,638       (1,192,483 )     42,638  
                                 
Net loss
   $ (645,739 )   $ (1,698,394 )   $ (388,910 )   $ (1,935,076 )
                                 
Loss per common share, basic and diluted
   $ (0.06 )   $ (0.31 )   $ (0.05 )   $ (0.67 )
                                 
Weighted average number of common shares, basic and diluted
     10,071,074       5,529,773       8,020,014       2,875,722  
 
 
 
 
 
CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEET DATA
        
(Expressed in US Dollars)
        
   
June 30, 2011
    
December 31, 2010
  
ASSETS
            
             
Cash and cash equivalents
   $ 46,170,273     $ 11,098,284  
Other current assets
     1,556,320       1,277,730  
Vessels’ net book value
     161,731,656       92,077,309  
Other non-current assets
     -       895,846  
Total assets
   $ 209,458,249     $ 105,349,169  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
                 
Current liabilities, including current portion of long-term debt
   $ 3,048,490     $ 2,428,676  
Long-term debt, net of current portion
     -       18,128,095  
Other non-current liabilities
     136,253       181,684  
Total stockholders’ equity
     206,273,506       84,610,714  
Total liabilities and stockholders’ equity
   $ 209,458,249     $ 105,349,169  
 
 
OTHER FINANCIAL DATA
                        
   
For the three months ended June 30,
    
For the six
 months ended
    
For the period
 from January 7,
(inception date) to
  
   
2011
    
2010
    
June 30, 2011
    
June 30, 2010
  
   
(unaudited)
    
(unaudited)
    
(unaudited)
    
(unaudited)
  
Net Cash provided by/(used in) Operating Activities
   $ 2,373,955     $ (470,970 )   $ 4,204,298     $ (470,970 )
Net Cash used in Investing Activities
     (71,313,845 )     (50,468,694 )     (71,313,845 )     (50,468,694 )
Net Cash provided by Financing Activities
     83,298,336       35,280,896       102,181,536       85,281,396