Raises Dividend by 6.9% to
First Quarter 2011 Highlights
- Paid a
$0.29 per common share dividend onMarch 1, 2011 to all shareholders of record as ofFebruary 22, 2011 ; - Declared a dividend increase of 6.9% to
$0.31 per common share, payable onMay 23, 2011 to all shareholders of record as ofMay 16, 2011 ; - Recorded net income attributable to
Textainer Group Holdings Limited common shareholders of$37.2 million , or$0.75 per diluted common share, for the first quarter; - Recorded net income attributable to
Textainer Group Holdings Limited common shareholders excluding unrealized (gains) losses on interest rate swaps, net(1) of$35.4 million , or$0.71 per diluted common share, for the first quarter; - Increased average fleet utilization to 98.2% for the first quarter of 2011 from 90.1% for the first quarter 2010;
- Ordered 166,500 Twenty-Foot Equivalent Units ("TEU") of new standard dry-freight containers for delivery in the first half of 2011 and 9,000 TEU of refrigerated containers for delivery through
July 2011 , representing more than$506.5 million of capital expenditures; - Exercised an option to expand the size of the securitization facility of our principal asset-owning subsidiary,
Textainer Marine Containers Limited , by$100 million in the first quarter to a total revolving commitment of$850 million ; and - Signed a purchase-leaseback transaction in
March 2011 for older containers for a total of 16,100 TEU at a price of$10.3 million , for which the lease is effective beginning inApril 2011 .
Total revenue for the first quarter 2011 was
Net income attributable to
Net income attributable to
Net income attributable to
Mr. Maccarone concluded, "Textainer's Board declared a dividend increase for the fifth consecutive quarter. Our first quarter 2011 dividend represents an increase of 6.9% from our previous quarterly payout and continues our record of stable or increasing dividends."
Outlook
Industry
Manufacturing in
We expect utilization to remain in the mid to high 90% range during 2011, and have thus far been pleased as utilization averaged 98.2% in the first quarter of 2011. So far this year, returns of older containers by our customers have been minimal primarily due to the high cost required to buy or lease replacement containers, which has resulted in extensions of expired leases, usually at higher rental rates.
Since the supply of older containers for the secondary storage market is less than demand, we have experienced attractive gross margins on trading containers and gains on disposal of owned containers, which we expect will continue.
Strategic Focus
Following record 2010 purchase of new production of 214,000 TEU of containers at a cost of
As a result of exercising an option to increase our main credit facility by
With a low debt-to-equity ratio of 1.4:1, we are in a strong position to continue purchasing both new and used containers to take advantage of attractive opportunities as the year unfolds.
Dividend
On
Investors' Webcast
About
Important Cautionary Information Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of U.S. securities laws. Forward-looking statements include statements that are not statements of historical facts and include, without limitation, statements regarding: (i) Textainer's expectation to be able to provide its shareholders with a sizeable contracted revenue stream; (ii) Textainer's intention to utilize its considerable financial flexibility, including over
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | ||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||
March 31, 2011 and December 31, 2010 | ||||||||||||
(Unaudited) | ||||||||||||
(All currency expressed in United States dollars in thousands) | ||||||||||||
2011 | 2010 | |||||||||||
|
| |||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 89,970 | $ | 57,081 | ||||||||
Accounts receivable, net of allowance for doubtful accounts of | ||||||||||||
$8,031 and $8,653 in 2011 and 2010, respectively | 67,821 | 63,511 | ||||||||||
Net investment in direct financing and sales-type leases | 20,711 | 19,117 | ||||||||||
Trading containers | 1,024 | 404 | ||||||||||
Containers held for sale | 1,662 | 2,883 | ||||||||||
Prepaid expenses | 8,669 | 8,603 | ||||||||||
Deferred taxes | 1,896 | 1,895 | ||||||||||
Due from affiliates, net | 10 | - | ||||||||||
Total current assets | 191,763 | 153,494 | ||||||||||
Restricted cash | 24,472 | 15,034 | ||||||||||
Containers, net of accumulated depreciation of $372,287 and $361,791 | ||||||||||||
at 2011 and 2010, respectively | 1,560,196 | 1,437,259 | ||||||||||
Net investment in direct financing and sales-type leases | 76,823 | 72,224 | ||||||||||
Fixed assets, net of accumulated depreciation of $8,960 and $8,820 | ||||||||||||
at 2011 and 2010, respectively | 1,779 | 1,804 | ||||||||||
Intangible assets, net of accumulated amortization of $29,048 and $27,441 | ||||||||||||
at 2011 and 2010, respectively | 58,515 | 60,122 | ||||||||||
Interest rate swaps | 1,742 | 1,320 | ||||||||||
Other assets | 4,423 | 5,950 | ||||||||||
Total assets | $ | 1,919,713 | $ | 1,747,207 | ||||||||
Liabilities and Equity | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 5,475 | $ | 6,296 | ||||||||
Accrued expenses | 5,975 | 11,988 | ||||||||||
Container contracts payable | 128,989 | 98,731 | ||||||||||
Deferred revenue | 6,722 | 6,855 | ||||||||||
Due to owners, net | 16,335 | 17,545 | ||||||||||
Bonds payable | 51,500 | 51,500 | ||||||||||
Total current liabilities | 214,996 | 192,915 | ||||||||||
Revolving credit facility | 119,000 | 104,000 | ||||||||||
Secured debt facility | 669,652 | 558,127 | ||||||||||
Bonds payable | 162,738 | 175,570 | ||||||||||
Deferred revenue | 1,413 | 2,994 | ||||||||||
Interest rate swaps | 11,792 | 13,581 | ||||||||||
Income tax payable | 20,936 | 20,821 | ||||||||||
Deferred taxes | 9,966 | 8,632 | ||||||||||
Total liabilities | 1,210,493 | 1,076,640 | ||||||||||
Equity: | ||||||||||||
Textainer Group Holdings Limited shareholders' equity: | ||||||||||||
Common shares, $0.01 par value. Authorized 140,000,000 shares; issued and outstanding 48,865,154 and 48,318,058 at 2011 and 2010, respectively | ||||||||||||
489 | 483 | |||||||||||
Additional paid-in capital | 191,469 | 181,602 | ||||||||||
Accumulated other comprehensive income (loss) | 30 | (52 | ) | |||||||||
Retained earnings | 424,924 | 401,849 | ||||||||||
Total Textainer Group Holdings Limited shareholders' equity | 616,912 | 583,882 | ||||||||||
Noncontrolling interest | 92,308 | 86,685 | ||||||||||
Total equity | 709,220 | 670,567 | ||||||||||
Total liabilities and equity | $ | 1,919,713 | $ | 1,747,207 | ||||||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | |||||||||||||||||
Condensed Consolidated Statements of Income | |||||||||||||||||
Three Months Ended March 31, 2011 and 2010 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(All currency expressed in United States dollars in thousands, except per share amounts) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2011 | 2010 | ||||||||||||||||
Revenues: | |||||||||||||||||
Lease rental income | $ | 72,359 | $ | 49,581 | |||||||||||||
Management fees | 7,684 | 6,408 | |||||||||||||||
Trading container sales proceeds | 4,765 | 4,017 | |||||||||||||||
Gains on sale of containers, net | 6,394 | 9,614 | |||||||||||||||
Total revenues | 91,202 | 69,620 | |||||||||||||||
Operating expenses: | |||||||||||||||||
Direct container expense | 3,958 | 9,376 | |||||||||||||||
Cost of trading containers sold | 4,166 | 3,162 | |||||||||||||||
Depreciation expense | 18,866 | 12,843 | |||||||||||||||
Amortization expense | 1,758 | 1,577 | |||||||||||||||
General and administrative expense | 6,198 | 5,348 | |||||||||||||||
Short-term incentive compensation expense | 959 | 766 | |||||||||||||||
Long-term incentive compensation expense | 1,736 | 2,075 | |||||||||||||||
Bad debt expense (recovery), net | 136 | (276 | ) | ||||||||||||||
Total operating expenses | 37,777 | 34,871 | |||||||||||||||
Income from operations | 53,425 | 34,749 | |||||||||||||||
Other income (expense): | |||||||||||||||||
Interest expense | (7,523 | ) | (2,654 | ) | |||||||||||||
Interest income | 7 | 8 | |||||||||||||||
Realized losses on interest rate swaps and caps, net | (2,642 | ) | (2,753 | ) | |||||||||||||
Unrealized gains (losses) on interest rate swaps, net | 2,211 | (1,600 | ) | ||||||||||||||
Other, net | (51 | ) | (63 | ) | |||||||||||||
Net other expense | (7,998 | ) | (7,062 | ) | |||||||||||||
Income before income tax and noncontrolling interest | 45,427 | 27,687 | |||||||||||||||
Income tax expense | (2,614 | ) | (614 | ) | |||||||||||||
Net income | 42,813 | 27,073 | |||||||||||||||
Less: Net income attributable to the noncontrolling interest | (5,623 | ) | (2,834 | ) | |||||||||||||
Net income attributable to Textainer Group Holdings | |||||||||||||||||
Limited common shareholders | $ | 37,190 | $ | 24,239 | |||||||||||||
Net income attributable to Textainer Group Holdings Limited
common shareholders per share: | |||||||||||||||||
Basic | $ | 0.76 | $ | 0.51 | |||||||||||||
Diluted | $ | 0.75 | $ | 0.50 | |||||||||||||
Weighted average shares outstanding (in thousands): | |||||||||||||||||
Basic | 48,660 | 47,966 | |||||||||||||||
Diluted | 49,892 | 48,763 | |||||||||||||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | ||||||||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
Three months Ended March 31, 2011 and 2010 | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(All currency expressed in United States dollars in thousands) | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2011 | 2010 | |||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 42,813 | $ | 27,073 | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation expense | 18,866 | 12,843 | ||||||||||||||
Bad debt expense (recovery), net | 136 | (276 | ) | |||||||||||||
Unrealized (gains) losses on interest rate swaps, net | (2,211 | ) | 1,600 | |||||||||||||
Amortization of debt issuance costs | 1,750 | 512 | ||||||||||||||
Amortization of intangible assets | 1,758 | 1,577 | ||||||||||||||
Amortization of acquired above-market leases | (151 | ) | 240 | |||||||||||||
Amortization of deferred revenue | (1,687 | ) | (1,813 | ) | ||||||||||||
Amortization of unearned income on direct financing and sales-type leases | (1,920 | ) | (1,763 | ) | ||||||||||||
Gains on sale of containers, net | (6,394 | ) | (9,614 | ) | ||||||||||||
Share-based compensation expense | 1,842 | 2,193 | ||||||||||||||
Changes in operating assets and liabilities | (10,862 | ) | 10,456 | |||||||||||||
Total adjustments | 1,127 | 15,955 | ||||||||||||||
Net cash provided by operating activities | 43,940 | 43,028 | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of containers and fixed assets | (129,919 | ) | (31,469 | ) | ||||||||||||
Proceeds from sale of containers and fixed assets | 14,706 | 17,389 | ||||||||||||||
Receipt of principal payments on direct financing and sales-type leases | 7,035 | 6,658 | ||||||||||||||
Net cash used in investing activities | (108,178 | ) | (7,422 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from revolving credit facility | 55,000 | 18,000 | ||||||||||||||
Principal payments on revolving credit facility | (40,000 | ) | - | |||||||||||||
Proceeds from secured debt facility | 142,500 | 8,000 | ||||||||||||||
Principal payments on secured debt facility | (31,000 | ) | (31,500 | ) | ||||||||||||
Principal payments on bonds payable | (12,875 | ) | (12,875 | ) | ||||||||||||
Increase in restricted cash | (9,438 | ) | (7,546 | ) | ||||||||||||
Debt issuance costs | (1,058 | ) | (11 | ) | ||||||||||||
Issuance of common shares upon exercise of share options | 4,849 | 644 | ||||||||||||||
Excess tax benefit from share-based payment awards | 3,182 | - | ||||||||||||||
Dividends paid | (14,115 | ) | (11,035 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 97,045 | (36,323 | ) | |||||||||||||
Effect of exchange rate changes | 82 | (46 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 32,889 | (763 | ) | |||||||||||||
Cash and cash equivalents, beginning of the year | 57,081 | 56,819 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 89,970 | $ | 56,056 | ||||||||||||
|
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Reconciliation of GAAP financial measures to non-GAAP financial measures
Three Months Ended
(Unaudited)
(All currency expressed in
(1) The following is a reconciliation of net income attributable to
- They do not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
- They do not reflect changes in, or cash requirements for, our working capital needs;
- EBITDA does not reflect interest expense or cash requirements necessary to service interest or principal payments on our debt;
- Although depreciation is a noncash charge, the assets being depreciated may be replaced in the future, and neither EBITDA, net income attributable to
Textainer Group Holdings Limited common shareholders excluding unrealized (gains) losses on interest rate swaps, net or net income attributable toTextainer Group Holdings Limited common shareholders per diluted common share excluding unrealized (gains) losses on interest rate swaps, net reflects any cash requirements for such replacements; - They are not adjusted for all noncash income or expense items that are reflected in our statements of cash flows; and
- Other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures.
Three Months Ended | |||||||||||||
March 31, | |||||||||||||
2011 | 2010 | ||||||||||||
(Dollars in thousands) | |||||||||||||
(Unaudited) | |||||||||||||
Reconciliation of EBITDA: | |||||||||||||
Net income attributable to Textainer Group Holdings Limited common
shareholders |
$ | 37,190 | $ | 24,239 | |||||||||
Adjustments: | |||||||||||||
Interest income | (7 | ) | (8 | ) | |||||||||
Interest expense | 7,523 | 2,654 | |||||||||||
Realized losses on interest rate swaps and caps, net | 2,642 | 2,753 | |||||||||||
Unrealized (gains) losses on interest rate swaps, net | (2,211 | ) | 1,600 | ||||||||||
Income tax expense | 2,614 | 614 | |||||||||||
Net income attributable to the noncontrolling interest | 5,623 | 2,834 | |||||||||||
Depreciation expense | 18,866 | 12,843 | |||||||||||
Amortization expense | 1,758 | 1,577 | |||||||||||
Impact of reconciling items on net income attributable to the noncontrolling interest |
(4,156 |
) |
(3,423 |
) | |||||||||
EBITDA | $ | 69,842 | $ | 45,683 | |||||||||
Net cash provided by operating activities | $ |
43,940 |
$ | 43,028 | |||||||||
Adjustments: | |||||||||||||
Bad debt (expense) recovery, net | (136 | ) | 276 | ||||||||||
Amortization of debt issuance costs | (1,750 | ) | (512 | ) | |||||||||
Amortization of acquired above-market leases | 151 | (240 | ) | ||||||||||
Amortization of deferred revenue | 1,687 | 1,813 | |||||||||||
Amortization of unearned income on direct financing and sales-type leases | 1,920 | 1,763 | |||||||||||
Gains on sale of containers, net | 6,394 | 9,614 | |||||||||||
Share-based compensation expense | (1,842 | ) | (2,193 | ) | |||||||||
Interest income | (7 | ) | (8 | ) | |||||||||
Interest expense | 7,523 | 2,654 | |||||||||||
Realized losses on interest rate swaps and caps, net | 2,642 | 2,753 | |||||||||||
Income tax expense | 2,614 | 614 | |||||||||||
Changes in operating assets and liabilities |
10,862 |
(10,456 | ) | ||||||||||
Impact of reconciling items on net income attributable to the noncontrolling interest |
(4,156 |
) |
(3,423 |
) | |||||||||
EBITDA | $ | 69,842 | $ | 45,683 |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2011 | 2010 | |||||||||||||
(Dollars in thousands) | ||||||||||||||
(Unaudited) | ||||||||||||||
Reconciliation of net income attributable to Textainer Group Holdings |
||||||||||||||
Limited common shareholders excluding unrealized (gains) losses on interest rate swaps, net: |
||||||||||||||
Net income attributable to Textainer Group Holdings Limited common shareholders |
$ | 37,190 | $ | 24,239 | ||||||||||
Adjustments: | ||||||||||||||
Unrealized (gains) losses on interest rate swaps, net |
(2,211 | ) | 1,600 | |||||||||||
Impact of reconciling item on net income attributable to noncontrolling interest |
469 |
(337 |
) | |||||||||||
Net income attributable to Textainer Group Holdings Limited common shareholders excluding unrealized (gains) losses on interest rate swaps, net |
$ |
35,448 |
$ |
25,502 |
||||||||||
Reconciliation of net income attributable to Textainer Group Holdings |
||||||||||||||
Limited common shareholders per diluted common share excluding unrealized (gains) losses on interest rate swaps, net: |
||||||||||||||
Net income attributable to Textainer Group Holdings |
||||||||||||||
Limited common shareholders per diluted common share |
$ | 0.75 | $ | 0.50 | ||||||||||
Adjustments: | ||||||||||||||
Unrealized (gains) losses on interest rate swaps, net | (0.05 | ) | 0.03 | |||||||||||
Impact of reconciling item on net income attributable to noncontrolling interest |
0.01 |
(0.01 |
) | |||||||||||
Net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share excluding unrealized (gains) losses on interest rate swaps, net
|
$ | 0.71 | $ | 0.52 |
Mr.
Investor Relations Director
ir@textainer.com
Source:
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