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Diana Containerships Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2014

ATHENS, Greece, Nov. 24, 2014 (GLOBE NEWSWIRE) -- Diana Containerships Inc. (Nasdaq:DCIX), (the "Company"), a global shipping company specializing in the ownership of containerships, today reported net income of $1.4 million for the third quarter of 2014, compared to a net loss of $0.7 million for the respective period of 2013.

Time charter revenues, net of prepaid charter revenue amortization, were $13.0 million for the third quarter of 2014, compared to $11.1 million for the same period of 2013, mainly due to increased average time charter rates achieved, despite the decrease in ownership days in the third quarter of 2014 compared to the same period of 2013, resulting from the disposal of two vessels in December 2013 and February 2014, which was partly offset by the addition to the Company's fleet of three vessels from August 2013 to September 2014.

Net income for the nine months ended September 30, 2014 amounted to $2.4 million, compared to a net loss of $37.6 million for the same period of 2013. The loss for the nine months ended September 30, 2013 was mainly the result of an impairment loss and actual losses arising from the disposal of three vessels, together totalling $36.9 million. Time charter revenues, net of prepaid charter revenue amortization, for the nine months ended September 30, 2014 amounted to $39.0 million, compared to $38.5 million for the same period of 2013.

Dividend Declaration

The Company has declared a cash dividend on its common stock of $0.0025 per share with respect to the third quarter of 2014. The cash dividend will be payable on or around December 18, 2014 to all shareholders of record as at December 4, 2014. The Company has 73,158,991 shares of common stock outstanding.

Fleet Employment Profile (As of November 21, 2014)
Currently Diana Containerships Inc.'s fleet is employed as follows:
Vessel
BUILT TEU Sister Ships* Gross Rate (USD Per Day)
Com**

Charterer
Delivery Date to Charterer Redelivery Date to Owners***
Notes
Panamax Container Vessels
SAGITTA A $7,400 1.25% A.P. Møller - Maersk A/S 29-Jan-14 14-Nov-14
$7,825 1.25% 14-Nov-14 14-Sep-15 - 14-Nov-15 1
2010 3,426
CENTAURUS A $8,000 3.50% CMA CGM S.A. 13-Jun-14 15-Dec-14 - 13-Jan-15 2
2010 3,426
SANTA PAMINA $9,500 5.00% The Shipping Corporation of India Ltd. 25-Nov-14 16-Mar-15 - 15-May-15 3
2005 5,042
CAP DOMINGO B $23,250 0% Reederei Santa Containerschiffe GmbH & Co. KG 6-Feb-14 23-Dec-14 - 15-Jan-15 2,4,5,6
(ex Cap San Marco)
2001 3,739
CAP DOUKATO B $23,250 0% Reederei Santa Containerschiffe GmbH & Co. KG 6-Feb-14 23-Dec-14 - 15-Jan-15 2,4,5,6
(ex Cap San Raphael)
2002 3,739
APL GARNET $27,000 0% NOL Liner (Pte) Ltd. 19-Nov-12 20-Aug-15 - 19-Oct-15 5
1995 4,729
HANJIN MALTA $25,550 US$150 per day Hanjin Shipping Co. Ltd. 15-Mar-13 30-Mar-16 - 15-May-16 5
1993 4,024
Post - Panamax Container Vessels
PUELO C $27,900 US$150 per day CSAV Valparaiso 23-Aug-13 23-Feb-15 - 23-Feb-16 7,8
2006 6,541
PUCON C $27,900 US$150 per day CSAV Valparaiso 20-Sep-13 20-Mar-15 - 20-Mar-16 7,8
2006 6,541
YM MARCH D $12,000 0% Yang Ming (UK) Ltd. 12-Sep-14 27-Dec-14 - 6-Apr-15 2
2004 5,576
YM GREAT D $12,000 0% Yang Ming (UK) Ltd. 10-Oct-14 27-Dec-14 - 7-Mar-15 2
2004 5,576
* 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 October 24, 2014, the Company agreed to extend as from November 14, 2014 the previous charter party with A. P. Møller - Maersk A/S for a period of minimum 10 months to maximum 12 months at a gross charter rate of US$7,825 per day.
2 Based on latest information.
3 Expected date of delivery to the Company.
4 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.
5 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.
6 Vessel chartered for a period of thirty-six (36) months plus or minus forty-five (45) days. The net daily charter hire rate was US$22,750 during the first twelve (12) months, US$22,850 during the second twelve (12) months and is US$23,250 for the third twelve (12) months of the charter.
7 In case the vessel is redelivered to the Company in any period between the earliest and the maximum redelivery period, 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.
8 Charterers changed to Norasia Container Lines Limited, as per Novation Agreement signed on September 17, 2014 with a retroactive effect from July 1, 2014.
Summary of Selected Financial & Other Data
For the three months ended September 30, For the nine months ended September 30,
2014 2013 2014 2013
(unaudited) (unaudited) (unaudited) (unaudited)
INCOME STATEMENT DATA (in thousands of US Dollars):
Time charter revenues, net of prepaid charter revenue amortization $ 13,043 $ 11,131 $ 39,030 $ 38,513
Voyage expenses 74 110 235 527
Vessel operating expenses 5,958 6,897 18,791 23,557
Net income / (loss) 1,434 (718) 2,369 (37,562)
FLEET DATA
Average number of vessels 8.2 8.5 8.3 9.6
Number of vessels 9.0 10.0 9.0 10.0
Ownership days 755 786 2,254 2,608
Available days 755 786 2,254 2,608
Operating days 755 784 2,246 2,538
Fleet utilization 100.0% 99.7% 99.6% 97.3%
AVERAGE DAILY RESULTS
Time charter equivalent (TCE) rate (1) $ 17,177 $ 14,022 $ 17,212 $ 14,565
Daily vessel operating expenses (2) $ 7,891 $ 8,775 $ 8,337 $ 9,033
(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, environmental compliance costs 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, November 24, 2014.

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 13593165.

About the Company

Diana Containerships Inc. is a leading 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
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended
September 30,
For the nine months ended
September 30,
2014 2013 2014 2013
REVENUES: (unaudited) (unaudited) (unaudited) (unaudited)
Time charter revenues $ 15,984 $ 16,350 $ 47,795 $ 53,441
Prepaid charter revenue amortization (2,941) (5,219) (8,765) (14,928)
Time charter revenues, net 13,043 11,131 39,030 38,513
EXPENSES:
Voyage expenses 74 110 235 527
Vessel operating expenses 5,958 6,897 18,791 23,557
Depreciation 2,526 2,412 7,441 8,118
Management fees -- -- -- 305
General and administrative expenses 1,393 1,182 4,521 3,851
Impairment losses -- -- -- 32,626
Loss on vessels' sale -- -- 695 4,271
Foreign currency losses 13 7 17 68
Operating income / (loss) 3,079 523 7,330 (34,810)
OTHER INCOME / (EXPENSES):
Interest and finance costs (1,696) (1,268) (5,054) (2,812)
Interest Income 51 27 93 60
Total other expenses, net (1,645) (1,241) (4,961) (2,752)
Net income / (loss) $ 1,434 $ (718) $ 2,369 $ (37,562)
Earnings / (loss) per common share, basic and diluted $ 0.02 $ (0.02) $ 0.05 $ (1.14)
Weighted average number of common shares, basic and diluted 61,642,173 33,863,517 44,516,763 32,809,180
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS)
For the three months ended
September 30,
For the nine months ended
September 30,
2014 2013 2014 2013
(unaudited) (unaudited) (unaudited) (unaudited)
Net income / (loss) $ 1,434 $ (718) $ 2,369 $ (37,562)
Comprehensive income / (loss) $ 1,434 $ (718) $ 2,369 $ (37,562)
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET DATA
(Expressed in thousands of US Dollars)
September 30, 2014 December 31, 2013
ASSETS
Cash and cash equivalents $ 110,007 $ 19,685
Restricted cash, current 600 --
Other current assets 3,284 3,295
Advances for vessel acquisitions and other vessel costs 4,467 --
Vessels' net book value 270,853 265,372
Other fixed assets, net 252 321
Restricted cash, non-current 9,270 9,870
Prepaid charter revenue 9,262 18,166
Total assets $ 407,995 $ 316,709

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities, including current portion of long-term bank debt $ 9,233 $ 3,779
Long-term bank debt, net of current portion and unamortized deferred financing costs 92,249 98,102
Related party financing, non-current 50,707 50,233
Other non-current liabilities 93 130
Total stockholders' equity 255,713 164,465
Total liabilities and stockholders' equity $ 407,995 $ 316,709
OTHER FINANCIAL DATA
For the three months ended
September 30,
For the nine months ended
September 30,
2014 2013 2014 2013
(unaudited) (unaudited) (unaudited) (unaudited)
Net Cash provided by Operating Activities $ 7,289 $ 6,474 $ 18,829 $ 22,069
Net Cash used in Investing Activities (26,509) (93,445) (17,157) (89,691)
Net Cash provided by Financing Activities 91,166 52,519 88,650 39,606

CONTACT: Corporate Contact: Ioannis Zafirakis Director, Chief Operating Officer and Secretary Telephone: + 30-216-600-2400 Email: izafirakis@dcontainerships.com Website: www.dcontainerships.com Investor and Media Relations: Edward Nebb Comm-Counsellors, LLC Telephone: + 1-203-972-8350 Email: enebb@optonline.netSource:Diana Containerships Inc.