Financial and Business Highlights:
- Utilization increased 2 percentage points during the quarter to end at 95.6 percent, and is currently at 96.3 percent;
-
Lease rental income increased 7.2 percent from the prior year to
$123.6 million ; -
Adjusted net income(1) of
$40.2 million for the quarter, or$0.70 per share; -
Declared a quarterly dividend of
$0.47 per share; -
Continued our strong pace of expansion with more than
$658 million invested for delivery in 2014 and$598 million of capex year-to-date; and - Increased total fleet size by 7 percent year-over-year to 3.1 million Twenty-Foot Equivalent Units (“TEU”).
“We are pleased with our second quarter results. Utilization has
increased almost 3% since its low point in the first quarter and this
positive trend is continuing into the third quarter,” commented
“We continue to see pressure on rental rates due to the high level of liquidity among container lessors and the low level of new container prices and interest rates. We also see reduced gains on container sales due to the declines in used container prices. We expect these conditions to continue for the near term. Our profitability was negatively affected by these factors.
“We remain the lowest cost operator among our public peers and we have lowered our financing costs. The economies of scale created by our size enable us to grow without adding significantly to our overhead. As a result, we continue to provide above average returns in both good and challenging markets.
“We invested
Key Financial Information (in thousands except for per share and TEU amounts):
Q2 QTD | Q2 YTD | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | % Change | 2014 | 2013 | % Change | ||||||||||||||||||||||||||||||||
Total revenues | $ | 139,538 | $ | 130,084 | 7.3 | % | $ | 274,960 | $ | 258,847 | 6.2 | % | |||||||||||||||||||||||||
Income from operations | $ | 65,473 | $ | 72,061 | -9.1 | % | $ | 129,813 | $ | 148,131 | -12.4 | % | |||||||||||||||||||||||||
Net income attributable to Textainer Group
Holdings Limited common shareholders |
$ | 33,013 | $ | 48,815 | -32.4 | % | $ | 92,662 | $ | 97,149 | -4.6 | % | |||||||||||||||||||||||||
Net income attributable to Textainer Group
Holdings Limited common shareholders per diluted common share |
$ | 0.58 | $ | 0.86 | -32.6 | % | $ | 1.62 | $ | 1.71 | -5.3 | % | |||||||||||||||||||||||||
Adjusted net income(1) | $ | 40,155 | $ | 46,722 | -14.1 | % | $ | 99,276 | $ | 92,962 | 6.8 | % | |||||||||||||||||||||||||
Adjusted net income per diluted common share(1) | $ | 0.70 | $ | 0.82 | -14.6 | % | $ | 1.74 | $ | 1.64 | 6.1 | % | |||||||||||||||||||||||||
Adjusted EBITDA(1) | $ | 105,718 | $ | 106,227 | -0.5 | % | $ | 209,130 | $ | 214,767 | -2.6 | % | |||||||||||||||||||||||||
Average fleet utilization | 95.3 | % | 95.1 | % | 0.2 | % | 94.8 | % | 95.4 | % | -0.6 | % | |||||||||||||||||||||||||
Total fleet size at end of period (TEU) | 3,059,657 | 2,860,549 | 7.0 | % | |||||||||||||||||||||||||||||||||
Owned percentage of total fleet at end of period | 76.7 | % | 74.0 | % | 3.6 | % | |||||||||||||||||||||||||||||||
“Adjusted net income” and “adjusted EBITDA” are Non-GAAP Measures that
are reconciled to GAAP measures in footnote 1. “Adjusted net income” is
defined as net income attributable to
Effective
Second-Quarter Results:
Textainer’s second-quarter financial results benefited from higher
revenue due to an increase in the average size of the owned container
fleet and an increase in utilization for the owned fleet. The Company’s
higher revenue for the second quarter was offset by an increase in
depreciation expense due to the larger owned fleet, higher interest
expense due to the
During the second quarter the Company entered into a
Dividend
On
Outlook
“During the second quarter we saw a strong increase in container demand which we expect to continue through the third quarter. However, the pressure on rental rates will remain. Returns on new container investments have declined and are unlikely to return to previous levels. We do not expect new or used container prices to increase in the short term. Used container prices could decline further although they appear to be nearing a bottom”, continued Mr. Brewer. “We expect to show improved results in the third quarter as we benefit from the expected continued increase in utilization, booked containers being picked-up and a full quarter of both higher lease-outs and lower funding costs.”
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
that pressure on rental rates due to the high level of liquidity among
container lessors and the low level of new container prices and interest
rates will continue for the near term; (ii) Textainer’s belief that the
economies of scale created by its size enables it to grow without adding
significantly to its overhead; (iii) Textainer’s belief that new
container prices are close to the cost of production and that returns on
containers purchased at today’s prices can be expected to increase over
time as the containers depreciate and especially if interest rates
and/or new container prices rise; (iv) Textainer’s expectation that the
strong increase in container demand seen during the second quarter will
continue through the third quarter; (v) Textainer’s expectation that the
pressure on rental rates will remain; (vi) Textainer’s belief that
returns on new container investments are unlikely to return to previous
levels; (vii) Textainer’s expectation that new or used container prices
will not increase in the short term; and (viii) Textainer’s belief that
used container prices could decline further although they appear to be
nearing a bottom. 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
recoveries; lease rates may decrease and lessees may default, which
could decrease revenue and increasing storage, repositioning, collection
and recovery expenses; we own a large and growing number of containers
in our fleet and are subject to significant ownership risk; further
consolidation of container manufacturers or the disruption of
manufacturing for the major manufacturers could result in higher new
container prices and/or decreased supply of new containers and any
increase in the cost or reduction in the supply of new containers; the
demand for leased containers depends on many political and economic
factors beyond
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income | |||||||||||||||||||||||||||||||||||||||||||||
Three and Six Months Ended June 30, 2014 and 2013 | |||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||
(All currency expressed in United States dollars in thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||
Lease rental income | $ | 123,635 | $ | 115,370 | $ | 244,289 | $ | 228,597 | |||||||||||||||||||||||||||||||||||||
Management fees | 4,380 | 4,949 | 8,781 | 10,232 | |||||||||||||||||||||||||||||||||||||||||
Trading container sales proceeds | 7,713 | 2,102 | 14,553 | 4,895 | |||||||||||||||||||||||||||||||||||||||||
Gains on sale of containers, net | 3,810 | 7,663 | 7,337 | 15,123 | |||||||||||||||||||||||||||||||||||||||||
Total revenues | 139,538 | 130,084 | 274,960 | 258,847 | |||||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||
Direct container expense | 13,832 | 10,134 | 26,114 | 19,138 | |||||||||||||||||||||||||||||||||||||||||
Cost of trading containers sold | 7,479 | 1,745 | 14,554 | 4,210 | |||||||||||||||||||||||||||||||||||||||||
Depreciation expense and
container impairment |
42,125 | 33,833 | 82,540 | 66,516 | |||||||||||||||||||||||||||||||||||||||||
Amortization expense | 905 | 1,088 | 1,858 | 2,175 | |||||||||||||||||||||||||||||||||||||||||
General and administrative expense | 6,533 | 6,167 | 13,232 | 12,604 | |||||||||||||||||||||||||||||||||||||||||
Short-term incentive
compensation expense |
812 | 685 | 1,507 | 1,372 | |||||||||||||||||||||||||||||||||||||||||
Long-term incentive
compensation expense |
1,652 | 1,134 | 3,210 | 2,214 | |||||||||||||||||||||||||||||||||||||||||
Bad debt expense, net | 727 | 3,237 | 2,132 | 2,487 | |||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 74,065 | 58,023 | 145,147 | 110,716 | |||||||||||||||||||||||||||||||||||||||||
Income from operations | 65,473 | 72,061 | 129,813 | 148,131 | |||||||||||||||||||||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (26,685 | ) | (20,894 | ) | (48,874 | ) | (42,523 | ) | |||||||||||||||||||||||||||||||||||||
Interest income | 29 | 31 | 59 | 69 | |||||||||||||||||||||||||||||||||||||||||
Realized losses on interest rate
swaps and caps, net |
(2,545 | ) | (2,089 | ) | (4,567 | ) | (4,479 | ) | |||||||||||||||||||||||||||||||||||||
Unrealized (losses) gains on
interest rate swaps, collars and caps, net |
(1,377 | ) | 3,981 | (861 | ) | 6,268 | |||||||||||||||||||||||||||||||||||||||
Other, net | (1 | ) | (10 | ) | (8 | ) | (29 | ) | |||||||||||||||||||||||||||||||||||||
Net other expense | (30,579 | ) | (18,981 | ) | (54,251 | ) | (40,694 | ) | |||||||||||||||||||||||||||||||||||||
Income before income tax and noncontrolling interest |
34,894 | 53,080 | 75,562 | 107,437 | |||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | (790 | ) | (2,240 | ) | 19,515 | (6,781 | ) | ||||||||||||||||||||||||||||||||||||||
Net income | 34,104 | 50,840 | 95,077 | 100,656 | |||||||||||||||||||||||||||||||||||||||||
Less: Net income attributable to the
noncontrolling interest |
(1,091 | ) | (2,025 | ) | (2,415 | ) | (3,507 | ) | |||||||||||||||||||||||||||||||||||||
Net income attributable to
Textainer Group Holdings Limited common shareholders |
$ | 33,013 | $ | 48,815 | $ | 92,662 | $ | 97,149 | |||||||||||||||||||||||||||||||||||||
Net income attributable to Textainer
Group Holdings Limited common shareholders per share: |
|||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.58 | $ | 0.87 | $ | 1.64 | $ | 1.73 | |||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.58 | $ | 0.86 | $ | 1.62 | $ | 1.71 | |||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding
(in thousands): |
|||||||||||||||||||||||||||||||||||||||||||||
Basic | 56,687 | 56,298 | 56,668 | 56,266 | |||||||||||||||||||||||||||||||||||||||||
Diluted | 57,136 | 56,875 | 57,142 | 56,840 | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation
adjustments |
17 | (37 | ) | 48 | (134 | ) | |||||||||||||||||||||||||||||||||||||||
Comprehensive income | 34,121 | 50,803 | 95,125 | 100,522 | |||||||||||||||||||||||||||||||||||||||||
Comprehensive income
attributable to the noncontrolling interest |
(1,091 | ) | (2,025 | ) | (2,415 | ) | (3,507 | ) | |||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to
Textainer Group Holdings Limited common shareholders |
$ | 33,030 | $ | 48,778 | $ | 92,710 | $ | 97,015 | |||||||||||||||||||||||||||||||||||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | ||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||
June 30, 2014 and December 31, 2013 | ||||||||||||
(Unaudited) | ||||||||||||
(All currency expressed in United States dollars in thousands) | ||||||||||||
2014 | 2013 | |||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 102,428 | $ | 120,223 | ||||||||
Accounts receivable, net of allowance for doubtful accounts of
$16,694 and
$14,891 in 2014 and 2013, respectively |
97,806 | 91,967 | ||||||||||
Net investment in direct financing and sales-type leases | 73,876 | 64,811 | ||||||||||
Trading containers | 8,453 | 13,009 | ||||||||||
Containers held for sale | 28,831 | 31,968 | ||||||||||
Prepaid expenses and other current assets | 17,651 | 19,063 | ||||||||||
Deferred taxes | 1,508 | 1,491 | ||||||||||
Total current assets | 330,553 | 342,532 | ||||||||||
Restricted cash | 30,863 | 63,160 | ||||||||||
Containers, net of accumulated depreciation of $623,058 and $562,456
at 2014
and 2013, respectively |
3,397,945 | 3,233,131 | ||||||||||
Net investment in direct financing and sales-type leases | 221,576 | 217,310 | ||||||||||
Fixed assets, net of accumulated depreciation of $8,796 and $8,286
at 2014 and
2013, respectively |
1,589 | 1,635 | ||||||||||
Intangible assets, net of accumulated amortization of $33,047 and
$31,188 at 2014
and 2013, respectively |
27,242 | 29,157 | ||||||||||
Interest rate swaps, collars and caps | 600 | 1,831 | ||||||||||
Other assets | 13,882 | 20,227 | ||||||||||
Total assets | $ | 4,024,250 | $ | 3,908,983 | ||||||||
Liabilities and Equity | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 7,132 | $ | 8,086 | ||||||||
Accrued expenses | 9,664 | 9,838 | ||||||||||
Container contracts payable | 85,490 | 22,819 | ||||||||||
Deferred revenue and other liabilities | 331 | 345 | ||||||||||
Due to owners, net | 13,320 | 12,775 | ||||||||||
Secured debt facility | 8,359 | - | ||||||||||
Term loan | 31,600 | - | ||||||||||
Bonds payable | 29,822 | 161,307 | ||||||||||
Total current liabilities | 185,718 | 215,170 | ||||||||||
Revolving credit facilities | 796,210 | 860,476 | ||||||||||
Secured debt facilities | 1,111,741 | 808,600 | ||||||||||
Term loan | 468,400 | - | ||||||||||
Bonds payable | 247,193 | 836,901 | ||||||||||
Interest rate swaps, collars and caps | 3,624 | 3,994 | ||||||||||
Income tax payable | 6,641 | 16,050 | ||||||||||
Deferred taxes | 5,678 | 19,166 | ||||||||||
Other liabilities | 2,973 | 3,132 | ||||||||||
Total liabilities | 2,828,178 | 2,763,489 | ||||||||||
Equity: | ||||||||||||
Textainer Group Holdings Limited shareholders' equity: | ||||||||||||
Common shares, $0.01 par value. Authorized 140,000,000 shares;
issued and
outstanding 56,712,156 and 56,450,580 at 2014 and 2013, respectively |
565 | 564 | ||||||||||
Additional paid-in capital | 372,671 | 366,197 | ||||||||||
Accumulated other comprehensive income | 117 | 69 | ||||||||||
Retained earnings | 770,383 | 730,993 | ||||||||||
Total Textainer Group Holdings Limited shareholders’ equity | 1,143,736 | 1,097,823 | ||||||||||
Noncontrolling interest | 52,336 | 47,671 | ||||||||||
Total equity | 1,196,072 | 1,145,494 | ||||||||||
Total liabilities and equity | $ | 4,024,250 | $ | 3,908,983 | ||||||||
|
|
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | |||||||||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||||||||
Six Months Ended June 30, 2014 and 2013 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(All currency expressed in United States dollars in thousands) | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 95,077 | $ | 100,656 | |||||||||||||
Adjustments to reconcile net income to net cash provided by operating
activities: |
|||||||||||||||||
Depreciation expense and container impairment | 82,540 | 66,516 | |||||||||||||||
Bad debt expense, net | 2,132 | 2,487 | |||||||||||||||
Unrealized losses (gains) on interest rate swaps, collars and caps, net | 861 | (6,268 | ) | ||||||||||||||
Amortization of debt issuance costs and accretion of bond discount | 12,150 | 5,985 | |||||||||||||||
Amortization of intangible assets | 1,858 | 2,175 | |||||||||||||||
Amortization of deferred revenue | - | (970 | ) | ||||||||||||||
Gains on sale of containers, net | (7,337 | ) | (15,123 | ) | |||||||||||||
Share-based compensation expense | 3,706 | 2,557 | |||||||||||||||
Changes in operating assets and liabilities | (29,281 | ) | (10,284 | ) | |||||||||||||
Total adjustments | 66,629 | 47,075 | |||||||||||||||
Net cash provided by operating activities | 161,706 | 147,731 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchase of containers and fixed assets | (289,920 | ) | (376,002 | ) | |||||||||||||
Proceeds from sale of containers and fixed assets | 68,376 | 58,678 | |||||||||||||||
Receipt of payments on direct financing and sales-type leases, net of
income earned |
34,107 | 26,561 | |||||||||||||||
Net cash used in investing activities | (187,437 | ) | (290,763 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from revolving credit facilities | 100,440 | 258,368 | |||||||||||||||
Principal payments on revolving credit facilities | (164,706 | ) | (11,218 | ) | |||||||||||||
Proceeds from secured debt facilities | 341,500 | 34,100 | |||||||||||||||
Principal payments on secured debt facilities | (30,000 | ) | (38,000 | ) | |||||||||||||
Proceeds from term loan | 500,000 | - | |||||||||||||||
Principal payments on bonds payable | (721,337 | ) | (65,749 | ) | |||||||||||||
Decrease in restricted cash | 32,297 | 8,935 | |||||||||||||||
Debt issuance costs | (2,053 | ) | (5,610 | ) | |||||||||||||
Issuance of common shares upon exercise of share options | 1,503 | 2,048 | |||||||||||||||
Excess tax benefit from share-based compensation awards | 1,266 | 2,291 | |||||||||||||||
Capital contributions from noncontrolling interests | 2,250 | 1,838 | |||||||||||||||
Dividends paid | (53,272 | ) | (51,209 | ) | |||||||||||||
Net cash provided by financing activities | 7,888 | 135,794 | |||||||||||||||
Effect of exchange rate changes | 48 | (134 | ) | ||||||||||||||
Net decrease in cash and cash equivalents | (17,795 | ) | (7,372 | ) | |||||||||||||
Cash and cash equivalents, beginning of the year | 120,223 | 100,127 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 102,428 | $ | 92,755 | |||||||||||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Reconciliation of GAAP financial measures to non-GAAP financial measures
Three and Six Months Ended
(Unaudited)
(All currency expressed in
(1) The following is a reconciliation of certain GAAP measures to
non-GAAP financial measures (such items listed in (a) to (d) below and
defined as “Non-GAAP Measures”) for the three and six months ended
(a) net income attributable to
(b) net cash provided by operating activities to Adjusted EBITDA;
(c) net income attributable to Textainer Group Holdings Limited common
shareholders to adjusted net income (defined as net income attributable
to
(d) net income attributable to
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 losses (gains) 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 is 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 | Six Months Ended | ||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||
Reconciliation of adjusted net income: | |||||||||||||||||||||||||||||
Net income attributable to Textainer Group Holdings Limited common
shareholders |
$ | 33,013 | $ | 48,815 | $ | 92,662 | $ | 97,149 | |||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Write-off of unamortized debt issuance costs | 6,424 | 895 | 6,424 | 895 | |||||||||||||||||||||||||
Unrealized losses (gains) on interest rate swaps, collars and caps, net | 1,377 | (3,981 | ) | 861 | (6,268 | ) | |||||||||||||||||||||||
Impact of reconciling items on income tax expense | (261 | ) | 159 | (244 | ) | 277 | |||||||||||||||||||||||
Impact of reconciling item on net income attributable to the noncontrolling interests |
(398 | ) | 834 | (427 | ) | 909 | |||||||||||||||||||||||
Adjusted net income | $ | 40,155 | $ | 46,722 | $ | 99,276 | $ | 92,962 | |||||||||||||||||||||
Reconciliation of adjusted net income per diluted common share: | |||||||||||||||||||||||||||||
Net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share
|
$ | 0.58 | $ | 0.86 | $ | 1.62 | $ | 1.71 | |||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Write-off of unamortized debt issuance costs | 0.11 | 0.02 | 0.11 | 0.02 | |||||||||||||||||||||||||
Unrealized losses (gains) on interest rate swaps, collars and caps, net | 0.02 | (0.07 | ) | 0.02 | (0.11 | ) | |||||||||||||||||||||||
Impact of reconciling items on income tax expense | - | - | - | - | |||||||||||||||||||||||||
Impact of reconciling item on net income attributable to the noncontrolling interests |
(0.01 | ) | 0.01 | (0.01 | ) | 0.02 | |||||||||||||||||||||||
Adjusted net income per diluted common share | $ | 0.70 | $ | 0.82 | $ | 1.74 | $ | 1.64 | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||||
Reconciliation of adjusted EBITDA: | |||||||||||||||||||||||||||||||
Net income attributable to Textainer Group Holdings
Limited common shareholders |
$ | 33,013 | $ | 48,815 | $ | 92,662 | $ | 97,149 | |||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Interest income | (29 | ) | (31 | ) | (59 | ) | (69 | ) | |||||||||||||||||||||||
Interest expense | 26,685 | 20,894 | 48,874 | 42,523 | |||||||||||||||||||||||||||
Realized losses on interest rate swaps and caps, net | 2,545 | 2,089 | 4,567 | 4,479 | |||||||||||||||||||||||||||
Unrealized losses (gains) on interest rate swaps, collars and caps, net | 1,377 | (3,981 | ) | 861 | (6,268 | ) | |||||||||||||||||||||||||
Income tax expense (benefit) | 790 | 2,240 | (19,515 | ) | 6,781 | ||||||||||||||||||||||||||
Net income attributable to the noncontrolling interests |
1,091 | 2,025 | 2,415 | 3,507 | |||||||||||||||||||||||||||
Depreciation expense and container impairment | 42,125 | 33,833 | 82,540 | 66,516 | |||||||||||||||||||||||||||
Amortization expense | 905 | 1,088 | 1,858 | 2,175 | |||||||||||||||||||||||||||
Impact of reconciling items on net income attributable to the noncontrolling interests |
(2,784 | ) | (745 | ) | (5,073 | ) | (2,026 | ) | |||||||||||||||||||||||
Adjusted EBITDA | $ | 105,718 | $ | 106,227 | $ | 209,130 | $ | 214,767 | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 161,706 | $ | 147,731 | |||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Bad debt expense, net | (2,132 | ) | (2,487 | ) | |||||||||||||||||||||||||||
Amortization of debt issuance costs and accretion of bond discount | (12,150 | ) | (5,985 | ) | |||||||||||||||||||||||||||
Amortization of deferred revenue | - | 970 | |||||||||||||||||||||||||||||
Gains on sale of containers, net | 7,337 | 15,123 | |||||||||||||||||||||||||||||
Share-based compensation expense | (3,706 | ) | (2,557 | ) | |||||||||||||||||||||||||||
Interest income | (59 | ) | (69 | ) | |||||||||||||||||||||||||||
Interest expense | 48,874 | 42,523 | |||||||||||||||||||||||||||||
Realized losses on interest rate swaps and caps, net | 4,567 | 4,479 | |||||||||||||||||||||||||||||
Income tax (benefit) expense | (19,515 | ) | 6,781 | ||||||||||||||||||||||||||||
Changes in operating assets and liabilities | 29,281 | 10,284 | |||||||||||||||||||||||||||||
Impact of reconciling items on net income attributable to the noncontrolling interests |
(5,073 | ) | (2,026 | ) | |||||||||||||||||||||||||||
Adjusted EBITDA | $ | 209,130 | $ | 214,767 |
Source:
Textainer Group Holdings Limited
Hilliard C. Terry, III, +1
415-658-8214
Executive Vice President and Chief Financial Officer
ir@textainer.com