Key Financial Information (in thousands except for per share and TEU amounts) and Business Highlights: |
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QTD | Full-Year | ||||||||||||||||||||
Q4 2018 | Q3 2018 | 2018 | 2017 | ||||||||||||||||||
Lease rental income (1) | $ | 157,115 | $ | 157,760 | $ | 612,704 | $ | 549,454 | |||||||||||||
Gain on sale of owned fleet containers, net | $ | 9,591 | $ | 8,450 | $ | 36,071 | $ | 26,210 | |||||||||||||
Income from operations | $ | 56,334 | $ | 37,156 | $ | 194,426 | $ | 143,866 | |||||||||||||
Net income attributable to Textainer Group Holdings |
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Limited common shareholders |
$ | 12,241 | $ | 1,913 | $ | 50,378 | $ | 19,365 | |||||||||||||
Net income attributable to Textainer Group Holdings |
|||||||||||||||||||||
Limited common shareholders per diluted common share |
$ | 0.21 | $ | 0.03 | $ | 0.88 | $ | 0.34 | |||||||||||||
Adjusted net income (2) | $ | 11,917 | $ | 4,815 | $ | 51,471 | $ | 23,165 | |||||||||||||
Adjusted net income per diluted common share (2) | $ | 0.21 | $ | 0.08 | $ | 0.90 | $ | 0.41 | |||||||||||||
Adjusted EBITDA (2) | $ | 115,000 | $ | 113,697 | $ | 443,090 | $ | 374,541 | |||||||||||||
Average fleet utilization | 98.6 | % | 98.0 | % | 98.1 | % | 96.4 | % | |||||||||||||
Total fleet size at end of period (TEU) | 3,354,724 | 3,451,293 | 3,354,724 | 3,279,892 | |||||||||||||||||
Owned percentage of total fleet at end of period | 78.9 | % | 76.8 | % | 78.9 | % | 74.6 | % |
(1) | “Lease rental income” includes both owned and managed fleet lease rental income. See note (a) within the attached Condensed Consolidated Statements of Comprehensive Income. | ||
(2) | “Adjusted net income” and “adjusted EBITDA” are Non-GAAP Measures that are reconciled to GAAP measures in section “Reconciliation of GAAP financial measures to non-GAAP financial measures” below. Section “Reconciliation of GAAP financial measures to non-GAAP financial measures” provides certain qualifications and limitations on the use of Non-GAAP Measures. | ||
- Lease rental income of
$157.1 million for the fourth quarter, as compared to$157.8 million in the third quarter. Lease rental income of$612.7 million for the full year, an increase of$63.3 million (or 11.5%) from the prior year; - Gain on sale of owned fleet containers, net, of
$9.6 million for the fourth quarter, an increase of$1.1 million (or 13.5%) from the third quarter. Gain on sale of owned fleet containers, net, of$36.1 million for the full year, an increase of$9.9 million (or 37.6%) from the prior year; - Adjusted net income of
$11.9 million for the fourth quarter, or$0.21 per diluted common share, as compared to$4.8 million , or$0.08 per diluted common share in the third quarter. Adjusted net income of$51.5 million for the full year, or$0.90 per diluted common share, as compared to$23.2 million , or$0.41 per diluted common share in the prior year; - Adjusted EBITDA of
$115.0 million for the fourth quarter, an increase of$1.3 million (or 1.1%) from the third quarter. Adjusted EBITDA of$443.1 million for the full year, an increase of$68.5 million (or 18.3%) from the prior year; - Utilization averaged 98.6% for the fourth quarter, an improvement of 60 basis points over the third quarter, and is currently at 98.3%. Utilization averaged 98.1% for the full year, an improvement of 170 basis points over the prior year; and
- Container investments of approximately
$830 million accepted into our owned and managed fleet during the year.
“2018 was a strong year for
“While we are pleased with our performance for the year, concerns and uncertainty around the ongoing trade frictions and slower global economic growth forecast served as a headwind to market activity in the fourth quarter. Accordingly, fourth quarter lease rental income of
Ghesquiere continued, “As we look at the industry through the global perspective, we are cautiously optimistic about the market outlook. While macro uncertainty persists, we are encouraged by low turn-in bookings, high utilizations, favorable container resale environment, and reasonable inventory levels. We continue to strengthen our business, with a focus on driving disciplined profitability, and we believe we are well-positioned to capitalize on potential market opportunities and create shareholder value.”
Fourth-Quarter and Full- Year Results
Lease rental income decreased
Gain on sale of owned fleet containers, net, increased
Direct container expense – owned fleet decreased
Container impairment was
Depreciation expense increased
General and administrative expense decreased
A gain on insurance recovery of
Interest expense for the quarter increased
Unrealized loss on interest rate swaps, collars and caps, net, was
Reclassification and Revisions to Previously Issued Consolidated Statements of Comprehensive Income
We have revised the presentation in our previously issued Consolidated Statements of Comprehensive Income for the first three quarters of 2018 and for the years ended
Conference Call and Webcast
A conference call to discuss the financial results for the fourth quarter and full year 2018 will be held at
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) being cautiously optimistic about the market outlook, and (ii) being well positioned to capitalize on potential market opportunities and create shareholder value. Readers are cautioned that these forward-looking statements involve risks and uncertainties, are only predictions and may differ materially from actual future events or results. These risks and uncertainties include, without limitation, the following items that could materially and negatively impact our business, results of operations, cash flows, financial condition and future prospects: any deceleration or reversal of the current domestic and global economic conditions; lease rates may decrease and lessees may default, which could decrease revenue and increase storage, repositioning, collection and recovery expenses; the demand for leased containers depends on many political and economic factors and is tied to international trade and if demand decreases due to increased barriers to trade or political or economic factors, or for other reasons, it reduces demand for intermodal container leasing; as we increase the number of containers in our owned fleet, we increase our capital at risk and may need to incur more debt, which could result in financial instability;
Textainer’s views, estimates, plans and outlook as described within this document may change subsequent to the release of this press release.
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income | |||||||||||||||||||||||||||||||||||||||||
Three Months and Years Ended December 31, 2018 and 2017 | |||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||
(All currency expressed in United States dollars in thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||||||||
Lease rental income - owned fleet | $ | 129,723 | $ | 116,297 | $ | 501,362 | $ | 444,888 | |||||||||||||||||||||||||||||||||
Lease rental income - managed fleet (a) | 27,392 | 29,633 | 111,342 | 104,566 | |||||||||||||||||||||||||||||||||||||
Lease rental income | 157,115 | 145,930 | 612,704 | 549,454 | |||||||||||||||||||||||||||||||||||||
Management fees - non-leasing (a) | 2,250 | 1,813 | 8,529 | 7,146 | |||||||||||||||||||||||||||||||||||||
Trading container sales proceeds (b) | 6,887 | 669 | 19,568 | 4,758 | |||||||||||||||||||||||||||||||||||||
Cost of trading containers sold (b) | (5,583 | ) | (456 | ) | (16,118 | ) | (3,302 | ) | |||||||||||||||||||||||||||||||||
Trading container margin | 1,304 | 213 | 3,450 | 1,456 | |||||||||||||||||||||||||||||||||||||
Gain on sale of owned fleet containers, net (b) | 9,591 | 8,305 | 36,071 | 26,210 | |||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||
Direct container expense - owned fleet | 15,129 | 14,747 | 58,813 | 60,321 | |||||||||||||||||||||||||||||||||||||
Distribution to managed fleet owners (a) | 25,341 | 27,401 | 102,992 | 96,718 | |||||||||||||||||||||||||||||||||||||
Depreciation expense | 61,134 | 55,437 | 235,705 | 231,043 | |||||||||||||||||||||||||||||||||||||
Container impairment | 8,221 | 1,591 | 26,775 | 8,072 | |||||||||||||||||||||||||||||||||||||
Amortization expense | 502 | 1,045 | 3,721 | 4,092 | |||||||||||||||||||||||||||||||||||||
General and administrative expense (c) | 10,652 | 11,370 | 44,317 | 39,677 | |||||||||||||||||||||||||||||||||||||
Bad debt expense (benefit), net | 1,639 | (640 | ) | 2,697 | 477 | ||||||||||||||||||||||||||||||||||||
Gain on insurance recovery | (8,692 | ) | - | (8,692 | ) | - | |||||||||||||||||||||||||||||||||||
Total operating expenses | 113,926 | 110,951 | 466,328 | 440,400 | |||||||||||||||||||||||||||||||||||||
Income from operations | 56,334 | 45,310 | 194,426 | 143,866 | |||||||||||||||||||||||||||||||||||||
Other (expense) income: | |||||||||||||||||||||||||||||||||||||||||
Interest expense | (36,589 | ) | (29,089 | ) | (138,427 | ) | (117,475 | ) | |||||||||||||||||||||||||||||||||
Write-off of unamortized deferred debt issuance costs and bond discounts |
- | (84 | ) | (881 | ) | (7,550 | ) | ||||||||||||||||||||||||||||||||||
Interest income |
556 | 205 | 1,709 | 613 | |||||||||||||||||||||||||||||||||||||
Realized gain (loss) on interest rate swaps, collars and caps, net |
1,287 | 296 | 5,238 | (1,191 | ) | ||||||||||||||||||||||||||||||||||||
Unrealized (loss) gain on interest rate swaps, collars and caps, net |
(8,038 | ) | 2,881 | (5,790 | ) | 4,094 | |||||||||||||||||||||||||||||||||||
Other, net |
1 | 4 | - | 3 | |||||||||||||||||||||||||||||||||||||
Net other expense |
(42,783 | ) | (25,787 | ) | (138,151 | ) | (121,506 | ) | |||||||||||||||||||||||||||||||||
Income before income tax and noncontrolling interests |
13,551 | 19,523 | 56,275 | 22,360 | |||||||||||||||||||||||||||||||||||||
Income tax expense | (763 | ) | (1,187 | ) | (2,025 | ) | (1,618 | ) | |||||||||||||||||||||||||||||||||
Net income | 12,788 | 18,336 | 54,250 | 20,742 | |||||||||||||||||||||||||||||||||||||
Less: Net income attributable to the noncontrolling interests |
(547 | ) | (1,125 | ) | (3,872 | ) | (1,377 | ) | |||||||||||||||||||||||||||||||||
Net income attributable to Textainer Group |
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Holdings Limited common shareholders |
$ | 12,241 | $ | 17,211 | $ | 50,378 | $ | 19,365 | |||||||||||||||||||||||||||||||||
Net income attributable to Textainer Group Holdings |
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Limited common shareholders per share: |
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Basic | $ | 0.21 | $ | 0.30 | $ | 0.88 | $ | 0.34 | |||||||||||||||||||||||||||||||||
Diluted | $ | 0.21 | $ | 0.30 | $ | 0.88 | $ | 0.34 | |||||||||||||||||||||||||||||||||
Weighted average shares outstanding (in thousands): |
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Basic | 57,363 | 56,961 | 57,200 | 56,845 | |||||||||||||||||||||||||||||||||||||
Diluted | 57,511 | 57,505 | 57,487 | 57,159 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments |
(45 | ) | 58 | (127 | ) | 207 | |||||||||||||||||||||||||||||||||||
Comprehensive income | 12,743 | 18,394 | 54,123 | 20,949 | |||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to the noncontrolling interests |
(547 | ) | (1,125 | ) | (3,872 | ) | (1,377 | ) | |||||||||||||||||||||||||||||||||
Comprehensive income attributable to Textainer |
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Group Holdings Limited common shareholders |
$ | 12,196 | $ | 17,269 | $ | 50,251 | $ | 19,572 |
(a) | Management fees for managed fleet leasing revenue for the periods ended December 31, 2017 have been reclassified to present the gross amount of revenue and expense under separate line items “lease rental income – managed fleet” and “distribution to managed fleet owners” to conform with the 2018 presentation. Management fees - non-leasing include acquisition fees and sales commission earned on the managed fleet. | ||
(b) | Amounts for the periods ended December 31, 2017 have been reclassified to conform with the 2018 presentation. | ||
(c) | Amounts for the periods ended December 31, 2017 have been reclassified out of the separate line items “short term incentive compensation expense” and “long term incentive compensation expense” and included within “general and administrative expense” to conform with the 2018 presentation. | ||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | |||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
December 31, 2018 and 2017 | |||||||||||
(Unaudited) | |||||||||||
(All currency expressed in United States dollars in thousands) | |||||||||||
2018 | 2017 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 137,298 | $ | 137,894 | |||||||
Accounts receivable, net of allowance for doubtful accounts of $4,082 and $5,775, respectively | 110,222 | 78,312 | |||||||||
Net investment in direct financing and sales-type leases | 39,270 | 56,959 | |||||||||
Trading containers | 40,852 | 10,752 | |||||||||
Containers held for sale | 21,874 | 22,089 | |||||||||
Prepaid expenses and other current assets | 12,855 | 12,243 | |||||||||
Insurance receivable | 9,814 | 15,909 | |||||||||
Due from affiliates, net | 1,692 | 1,134 | |||||||||
Total current assets | 373,877 | 335,292 | |||||||||
Restricted cash | 87,630 | 99,675 | |||||||||
Containers, net of accumulated depreciation of $1,322,221 and $1,172,355, respectively | 4,134,016 | 3,791,610 | |||||||||
Net investment in direct financing and sales-type leases | 127,790 | 125,665 | |||||||||
Fixed assets, net of accumulated depreciation of $11,525 and $10,788, respectively | 2,066 | 2,151 | |||||||||
Intangible assets, net of accumulated amortization of $43,266 and $44,279, respectively | 7,384 | 11,105 | |||||||||
Interest rate swaps, collars and caps | 5,555 | 7,787 | |||||||||
Deferred taxes | 2,087 | 1,563 | |||||||||
Other assets | 3,891 | 5,494 | |||||||||
Total assets | $ | 4,744,296 | $ | 4,380,342 | |||||||
Liabilities and Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 5,151 | $ | 6,867 | |||||||
Accrued expenses | 15,778 | 13,365 | |||||||||
Container contracts payable | 42,710 | 131,087 | |||||||||
Other liabilities | 219 | 235 | |||||||||
Due to owners, net | 8,322 | 11,131 | |||||||||
Debt, net of unamortized deferred financing costs of $5,738 and $3,989, respectively | 191,689 | 233,681 | |||||||||
Total current liabilities | 263,869 | 396,366 | |||||||||
Debt, net of unamortized deferred financing costs of $22,248 and $20,045, respectively | 3,218,138 | 2,756,627 | |||||||||
Interest rate swaps, collars and caps | 3,639 | 81 | |||||||||
Income tax payable | 9,570 | 9,081 | |||||||||
Deferred taxes | 7,039 | 5,881 | |||||||||
Other liabilities | 1,805 | 2,024 | |||||||||
Total liabilities | 3,504,060 | 3,170,060 | |||||||||
Equity: | |||||||||||
Textainer Group Holdings Limited shareholders' equity: | |||||||||||
Common shares, $0.01 par value. Authorized 140,000,000 shares; 58,032,164 shares issued and |
|||||||||||
57,402,164 shares outstanding at 2018; 57,727,220 shares issued and 57,097,220 shares |
|||||||||||
outstanding at 2017 |
581 | 578 | |||||||||
Additional paid-in capital | 406,083 | 397,821 | |||||||||
Treasury shares, at cost, 630,000 shares | (9,149 | ) | (9,149 | ) | |||||||
Accumulated other comprehensive loss | (436 | ) | (309 | ) | |||||||
Retained earnings | 813,979 | 763,601 | |||||||||
Total Textainer Group Holdings Limited shareholders’ equity | 1,211,058 | 1,152,542 | |||||||||
Noncontrolling interests | 29,178 | 57,740 | |||||||||
Total equity | 1,240,236 | 1,210,282 | |||||||||
Total liabilities and equity | $ | 4,744,296 | $ | 4,380,342 | |||||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | |||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||
Years Ended December 31, 2018 and 2017 | |||||||||||
(Unaudited) | |||||||||||
(All currency expressed in United States dollars in thousands) | |||||||||||
2018 | 2017 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 54,250 | $ | 20,742 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation expense | 235,705 | 231,043 | |||||||||
Container impairment | 26,775 | 8,072 | |||||||||
Bad debt expense, net | 2,697 | 477 | |||||||||
Unrealized loss (gain) on interest rate swaps, collars and caps, net | 5,790 | (4,094 | ) | ||||||||
Amortization and write-off of unamortized deferred debt issuance costs and |
|||||||||||
accretion of bond discounts |
9,531 | 20,814 | |||||||||
Amortization of intangible assets | 3,721 | 4,092 | |||||||||
Gain on sale of owned fleet containers, net | (36,071 | ) | (26,210 | ) | |||||||
Gain on insurance recovery | (8,692 | ) | — | ||||||||
Share-based compensation expense | 7,355 | 6,083 | |||||||||
Changes in operating assets and liabilities | (48,789 | ) | (10,044 | ) | |||||||
Total adjustments | 198,022 | 230,233 | |||||||||
Net cash provided by operating activities | 252,272 | 250,975 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchase of containers and fixed assets | (854,383 | ) | (300,125 | ) | |||||||
Payment for TW Container Leasing, Ltd capital restructuring | (29,658 | ) | — | ||||||||
Proceeds from sale of containers and fixed assets | 147,254 | 135,299 | |||||||||
Receipt of payments on direct financing and sales-type leases, net of income earned | 63,847 | 66,846 | |||||||||
Insurance proceeds received for unrecovered containers | — | 12,616 | |||||||||
Net cash used in investing activities | (672,940 | ) | (85,364 | ) | |||||||
Cash flows from financing activities: | |||||||||||
Proceeds from debt | 2,029,025 | 1,729,580 | |||||||||
Principal payments on debt | (1,608,753 | ) | (1,770,715 | ) | |||||||
Debt issuance costs | (10,252 | ) | (27,702 | ) | |||||||
Dividends paid to noncontrolling interest | (1,996 | ) | (2,496 | ) | |||||||
Issuance of common shares upon exercise of share options | 130 | 961 | |||||||||
Net cash provided by (used in) financing activities | 408,154 | (70,372 | ) | ||||||||
Effect of exchange rate changes | (127 | ) | 207 | ||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (12,641 | ) | 95,446 | ||||||||
Cash, cash equivalents and restricted cash, beginning of the year | 237,569 | 142,123 | |||||||||
Cash, cash equivalents and restricted cash, end of the year | $ | 224,928 | $ | 237,569 | |||||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Reconciliation of GAAP financial measures to non-GAAP financial measures
Three Months and Years Ended
(Unaudited)
(All currency expressed in
The following is a reconciliation of certain GAAP measures to non-GAAP financial measures (such items listed in (a) to (c) below and defined as “Non-GAAP Measures”) for the three months and years ended
(a) | net income attributable to Textainer Group Holdings Limited common shareholders to adjusted EBITDA (Adjusted EBITDA defined as net income attributable to Textainer Group Holdings Limited common shareholders before interest income and expense, write-off of unamortized deferred debt issuance costs and bond discounts, realized (gain) loss on interest rate swaps, collars and caps, net, unrealized loss (gain) on interest rate swaps, collars and caps, net, gain on insurance recovery, costs associated with departing senior executives, income tax expense, net income attributable to the noncontrolling interests (“NCI”), depreciation expense, container impairment, amortization expense and the related impact of reconciling items on net income attributable to the NCI); | ||
(b) | net income attributable to Textainer Group Holdings Limited common shareholders to adjusted net income (defined as net income attributable to Textainer Group Holdings Limited common shareholders before the write-off of unamortized deferred debt issuance costs and bond discounts, unrealized loss (gain) on interest rate swaps, collars and caps, net, gain on insurance recovery, costs associated with departing senior executives, the related impact of reconciling items on income tax expense and net income attributable to the NCI); and | ||
(c) | net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share to adjusted net income per diluted common share (defined as net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share before the write-off of unamortized deferred debt issuance costs and bond discounts, unrealized loss (gain) on interest rate swaps, collars and caps, net, gain on insurance recovery, costs associated with departing senior executives, the related impact of reconciling items on income tax expense and net income attributable to the NCI). | ||
Non-GAAP Measures are not financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”) and should not be considered as an alternative to net income, income from operations or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating activities as a measure of our liquidity. Non-GAAP Measures are presented solely as supplemental disclosures. Management believes that adjusted EBITDA may be a useful performance measure that is widely used within our industry and adjusted net income may be a useful performance measure because
Management also believes that adjusted net income and adjusted net income per diluted common share are useful in evaluating our operating performance because unrealized loss (gain) on interest rate swaps, collars and caps, net, is a noncash, non-operating item. We believe Non-GAAP Measures provide useful information on our earnings from ongoing operations. We believe that adjusted EBITDA provides useful information on our ability to service our long-term debt and other fixed obligations and on our ability to fund our expected growth with internally generated funds. Non-GAAP Measures have limitations as analytical tools, and you should not consider either of them in isolation, or as a substitute for analysis of our operating results or cash flows as reported under GAAP. Some of these limitations are:
- 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;
- Adjusted EBITDA does not reflect interest expense or cash requirements necessary to service interest or principal payments on our debt;
- Although depreciation expense and container impairment are a noncash charge, the assets being depreciated may be replaced in the future, and neither adjusted EBITDA, adjusted net income or adjusted net income per diluted common share 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 | Years Ended | ||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||
Reconciliation of adjusted net income: | |||||||||||||||||||||
Net income attributable to Textainer Group Holdings |
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Limited common shareholders |
$ | 12,241 | $ | 17,211 | $ | 50,378 | $ | 19,365 | |||||||||||||
Adjustments: | |||||||||||||||||||||
Write-off of unamortized deferred debt issuance costs and bond discounts | — | 84 | 881 | 7,550 | |||||||||||||||||
Unrealized loss (gain) on interest rate swaps, collars and caps, net | 8,038 | (2,881 | ) | 5,790 | (4,094 | ) | |||||||||||||||
Gain on insurance recovery | (8,692 | ) | — | (8,692 | ) | — | |||||||||||||||
Costs associated with departing senior executives | — | — | 2,368 | — | |||||||||||||||||
Impact of reconciling items on income tax expense | 6 | 47 | (478 | ) | (56 | ) | |||||||||||||||
Impact of reconciling items on net income attributable to |
|||||||||||||||||||||
the noncontrolling interests |
324 | 331 | 1,224 | 400 | |||||||||||||||||
Adjusted net income | $ | 11,917 | $ | 14,792 | $ | 51,471 | $ | 23,165 | |||||||||||||
Reconciliation of adjusted net income per diluted common share: | |||||||||||||||||||||
Net income attributable to Textainer Group Holdings |
|||||||||||||||||||||
Limited common shareholders per diluted common share |
$ | 0.21 | $ | 0.30 | $ | 0.88 | $ | 0.34 | |||||||||||||
Adjustments: | |||||||||||||||||||||
Write-off of unamortized deferred debt issuance costs and bond discounts | — | — | 0.02 | 0.13 | |||||||||||||||||
Unrealized loss (gain) on interest rate swaps, collars and caps, net | 0.14 | (0.05 | ) | 0.10 | (0.07 | ) | |||||||||||||||
Gain on insurance recovery | (0.15 | ) | — | (0.15 | ) |
— |
|||||||||||||||
Costs associated with departing senior executives | — | — | 0.04 | — | |||||||||||||||||
Impact of reconciling items on income tax expense | — | — | (0.01 | ) |
— |
||||||||||||||||
Impact of reconciling items on net income attributable to |
|||||||||||||||||||||
the noncontrolling interests |
0.01 | 0.01 | 0.02 | 0.01 | |||||||||||||||||
Adjusted net income per diluted common share | $ | 0.21 | $ | 0.26 | $ | 0.90 | $ | 0.41 | |||||||||||||
Three Months Ended | Years Ended | ||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||
Reconciliation of adjusted EBITDA: | |||||||||||||||||||||
Net income attributable to Textainer Group Holdings |
|||||||||||||||||||||
Limited common shareholders |
$ | 12,241 | $ | 17,211 | $ | 50,378 | $ | 19,365 | |||||||||||||
Adjustments: | |||||||||||||||||||||
Interest income | (556 | ) | (205 | ) | (1,709 | ) | (613 | ) | |||||||||||||
Interest expense | 36,589 | 29,089 | 138,427 | 117,475 | |||||||||||||||||
Write-off of unamortized deferred debt issuance costs and bond discounts | — | 84 | 881 | 7,550 | |||||||||||||||||
Realized (gain) loss on interest rate swaps, collars and caps, net | (1,287 | ) | (296 | ) | (5,238 | ) | 1,191 | ||||||||||||||
Unrealized loss (gain) on interest rate swaps, collars and caps, net | 8,038 | (2,881 | ) | 5,790 | (4,094 | ) | |||||||||||||||
Gain on insurance recovery | (8,692 | ) | — | (8,692 | ) | — | |||||||||||||||
Costs associated with departing senior executives | — | — | 2,368 | — | |||||||||||||||||
Income tax expense | 763 | 1,187 | 2,025 | 1,618 | |||||||||||||||||
Net income attributable to the noncontrolling interests | 547 | 1,125 | 3,872 | 1,377 | |||||||||||||||||
Depreciation expense | 61,134 | 55,437 | 235,705 | 231,043 | |||||||||||||||||
Container impairment | 8,221 | 1,591 | 26,775 | 8,072 | |||||||||||||||||
Amortization expense | 502 | 1,045 | 3,721 | 4,092 | |||||||||||||||||
Impact of reconciling items on net income attributable to |
|||||||||||||||||||||
the noncontrolling interests |
(2,500 | ) | (2,774 | ) | (11,213 | ) | (12,535 | ) | |||||||||||||
Adjusted EBITDA | $ | 115,000 | $ | 100,613 | $ | 443,090 | $ | 374,541 | |||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190221005924/en/
Source:
Textainer Group Holdings Limited
Investor Relations
Michael Chan
Phone: +1 (415) 658-8333
ir@textainer.com