Board of Directors Authorizes Share Repurchase Program of Up to
Financial and Business Highlights
-
Lease rental income of
$128.3 million was flat year over year, excluding the$2.6 million of proceeds received from a settlement with a bankrupt lessee in the prior year quarter; -
Adjusted net income(1) of
$17.7 million for the quarter, or$0.31 per diluted common share; -
Net income attributable to
Textainer Group Holdings Limited common shareholders of$9.9 million for the quarter, or$0.17 per diluted common share; -
Adjusted EBITDA(1) of
$104.1 million for the quarter, a decrease of 13 percent from the prior year quarter; - Utilization remained at high levels, averaging 96.4 percent for the quarter and is currently at 95.4 percent;
-
Recorded a
$2.7 million container impairment, net of estimated insurance proceeds and a$1.6 million bad debt provision for the quarter due to a customer insolvency; -
Decreased the estimated future residual value of 40 foot high cube
containers, resulting in
$5.8 million of additional depreciation expense and container impairment; -
Continued expansion with more than
$600 million of capex for lease-out in 2015; -
The Board of Directors authorized a share repurchase program of up to
$100 million ; and -
A quarterly dividend of
$0.24 per share was declared.
“Our performance this quarter was adversely impacted by the default of
one of our customers and our decision to reduce the residual value of
our 40 foot high cube containers from
“We continuously review container resale values compared to our residual values. Due to a decline in the resale value of 40 foot high cube containers, we decided to reduce their residual value for depreciation purposes. We do not see the need to reduce the residual value of other container types at this time. However, we will make adjustments should our expectations regarding future sales prices change.”
“Lease rental income, excluding
“Our average interest rate for the quarter has continued to decline as a
result of recent refinancings. Our utilization has remained high
declining only 2.6% since the beginning of the year. Our Resale Division
sold more than 115,000 containers through the end of the third quarter.
We have invested more than
Key Financial Information (in thousands except for per share and TEU amounts):
Q3 QTD | Q3 YTD | ||||||||||||
2015 | 2014 | % Change | 2015 | 2014 | % Change | ||||||||
Total revenues | $135,585 | $144,525 | -6.2% | $412,901 | $419,485 | -1.6% | |||||||
Income from operations | $43,578 | $73,625 | -40.8% | $172,500 | $203,438 | -15.2% | |||||||
Net income attributable to Textainer Group Holdings Limited common shareholders |
$9,891 | $54,297 | -81.8% | $85,457 | $146,959 | -41.8% | |||||||
Net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share |
$0.17 | $0.95 | -82.1% | $1.50 | $2.57 | -41.6% | |||||||
Adjusted net income(1) | $17,679 | $50,172 | -64.8% | $95,952 | $149,543 | -35.8% | |||||||
Adjusted net income per diluted common share(1) | $0.31 | $0.88 | -64.8% | $1.68 | $2.62 | -35.9% | |||||||
Adjusted EBITDA(1) | $104,121 | $119,952 | -13.2% | $325,967 | $329,082 | -0.9% | |||||||
Average fleet utilization | 96.4% | 97.0% | -0.6% | 97.2% | 95.6% | 1.7% | |||||||
Total fleet size at end of period (TEU) | 3,219,550 | 3,173,017 | 1.5% | ||||||||||
Owned percentage of total fleet at end of period | 80.0% | 78.0% | 2.6% |
“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
Third-Quarter Results
We continue to monitor the sales prices of other container types, especially 20 foot and 40 foot standard containers. While we do not believe adjustments to their residual values are necessary at this time, we will make adjustments should our expectations regarding future sales prices warrant a change.
In
Textainer’s 2014 nine month results also included a one-time
In addition to the above mentioned, Textainer’s third-quarter results were adversely impacted from: decreases in per diem rental rates and utilization; lower gains on sale of containers, net; higher storage costs; and an increase in container impairments for containers designated as held for sale due to declining used container prices.
Dividend
On
“In light of the challenging market conditions we face, the board has
decided to reduce our dividend from
Share Purchase Program
On
“We believe that our current share price does not properly reflect the underlying value of our assets and the growth prospects for our company. We believe containers are being valued based on new container prices and not on the cash flow expected to be generated over their lives. Purchasing shares at their current level will be meaningfully accretive to earnings per share and will add to our return on equity while allowing us to remain the least leveraged publicly traded container lessor,” added Mr. Brewer.
Outlook
“The outlook for the remainder of 2015 and early 2016 remains
challenging. Improved performance requires an increase in demand,
container prices and/or interest rates. We do not expect a significant
increase in demand until at least
“It is important to keep in mind that our industry is and has always been cyclical. We have been in business for 35 years and have successfully managed through many cycles. We have the largest fleet, the least leverage and the lowest operating costs of any of our public competitors. Containers purchased at today’s prices are expected to generate attractive returns over their lives.”
“We are well positioned with the largest fleet and lowest operating costs in the industry. 85% of our fleet is subject to long-term or finance leases with an average remaining term of 40 months. As we have been a consistent buyer of containers over the years, only 8.3% of our total fleet on term leases will mature in 2016. We are well positioned to deliver above average returns both in today’s market and when conditions improve,” concluded Mr. Brewer.
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 the default of one of its customers will not have a material impact
on its financial results in future periods because its lessee default
insurance will cover much of the loss after the deductible; (ii)
Textainer’s belief that additional investment in new and used containers
through year-end is likely to be limited; (iii) Textainer’s expectation
that future resale prices will be lower than originally expected; (iv)
Textainer’s belief that its reduced dividend establishes a level that is
sustainable and appropriate for the longer term; (v) Textainer’s belief
that purchasing its shares at their current level will be meaningfully
accretive to earnings per share and will add to its return on equity
while allowing it to remain the least leveraged publicly traded
container lessor; (vi) Textainer’s belief that improved performance
requires an increase in demand, container prices and/or interest rates;
(vii) Textainer’s expectation that there will not be a significant
increase in demand until at least
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income | ||||||||||||||||||||||||||||||
Three and Nine Months Ended September 30, 2015 and 2014 | ||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||
(All currency expressed in United States dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||
Lease rental income | $ | 128,262 | $ | 130,491 | $ | 385,850 | $ | 374,780 | ||||||||||||||||||||||
Management fees | 3,951 | 4,475 | 11,978 | 13,256 | ||||||||||||||||||||||||||
Trading container sales proceeds | 2,280 | 6,088 | 11,332 | 20,641 | ||||||||||||||||||||||||||
Gains on sale of containers, net | 1,092 | 3,471 | 3,741 | 10,808 | ||||||||||||||||||||||||||
Total revenues | 135,585 | 144,525 | 412,901 | 419,485 | ||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||
Direct container expense | 13,317 | 11,126 | 32,486 | 37,240 | ||||||||||||||||||||||||||
Cost of trading containers sold | 2,599 | 5,911 | 11,207 | 20,465 | ||||||||||||||||||||||||||
Depreciation expense and container impairment | 63,603 | 47,616 | 159,930 | 130,156 | ||||||||||||||||||||||||||
Amortization expense | 1,168 | 985 | 3,502 | 2,843 | ||||||||||||||||||||||||||
General and administrative expense | 7,134 | 6,037 | 21,629 | 19,269 | ||||||||||||||||||||||||||
Short-term incentive compensation expense | 207 | 1,257 | 1,645 | 2,764 | ||||||||||||||||||||||||||
Long-term incentive compensation expense | 1,360 | 1,669 | 4,841 | 4,879 | ||||||||||||||||||||||||||
Bad debt expense (recovery), net | 2,619 | (3,701 | ) | 5,161 | (1,569 | ) | ||||||||||||||||||||||||
Total operating expenses | 92,007 | 70,900 | 240,401 | 216,047 | ||||||||||||||||||||||||||
Income from operations | 43,578 | 73,625 | 172,500 | 203,438 | ||||||||||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||||||||
Interest expense | (18,979 | ) | (18,484 | ) | (57,639 | ) | (67,358 | ) | ||||||||||||||||||||||
Interest income | 27 | 31 | 90 | 90 | ||||||||||||||||||||||||||
Realized losses on interest rate swaps, collars and caps, net | (3,488 | ) | (2,854 | ) | (9,582 | ) | (7,421 | ) | ||||||||||||||||||||||
Unrealized (losses) gains on interest rate swaps, collars and caps, net | (9,378 | ) | 4,820 | (12,053 | ) | 3,959 | ||||||||||||||||||||||||
Other, net | 12 | 7 | 25 | (1 | ) | |||||||||||||||||||||||||
Net other expense | (31,806 | ) | (16,480 | ) | (79,159 | ) | (70,731 | ) | ||||||||||||||||||||||
Income before income tax and noncontrolling interests | 11,772 | 57,145 | 93,341 | 132,707 | ||||||||||||||||||||||||||
Income tax (expense) benefit | (1,625 | ) | (820 | ) | (4,260 | ) | 18,695 | |||||||||||||||||||||||
Net income | 10,147 | 56,325 | 89,081 | 151,402 | ||||||||||||||||||||||||||
Less: Net income attributable to the noncontrolling interests | (256 | ) | (2,028 | ) | (3,624 | ) | (4,443 | ) | ||||||||||||||||||||||
Net income attributable to Textainer Group Holdings Limited common shareholders |
$ | 9,891 | $ | 54,297 | $ | 85,457 | $ | 146,959 | ||||||||||||||||||||||
Net income attributable to Textainer Group Holdings Limited common shareholders per share: |
||||||||||||||||||||||||||||||
Basic | $ | 0.17 | $ | 0.96 | $ | 1.50 | $ | 2.59 | ||||||||||||||||||||||
Diluted | $ | 0.17 | $ | 0.95 | $ | 1.50 | $ | 2.57 | ||||||||||||||||||||||
Weighted average shares outstanding (in thousands): | ||||||||||||||||||||||||||||||
Basic | 57,009 | 56,719 | 56,993 | 56,687 | ||||||||||||||||||||||||||
Diluted | 57,083 | 57,120 | 57,127 | 57,085 | ||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (86 | ) | (2 | ) | (205 | ) | 46 | |||||||||||||||||||||||
Comprehensive income | 10,061 | 56,323 | 88,876 | 151,448 | ||||||||||||||||||||||||||
Comprehensive income attributable to the noncontrolling interests | (256 | ) | (2,028 | ) | (3,624 | ) | (4,443 | ) | ||||||||||||||||||||||
Comprehensive income attributable to Textainer Group Holdings Limited common shareholders |
$ | 9,805 | $ | 54,295 | $ | 85,252 | $ | 147,005 | ||||||||||||||||||||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | ||||||||||
Condensed Consolidated Balance Sheets | ||||||||||
September 30, 2015 and December 31, 2014 | ||||||||||
(Unaudited) | ||||||||||
(All currency expressed in United States dollars in thousands) | ||||||||||
2015 | 2014 | |||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 94,214 | $ | 107,067 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $14,673 and $12,139 at 2015 and 2014, respectively |
93,056 | 91,866 | ||||||||
Net investment in direct financing and sales-type leases | 88,123 | 89,003 | ||||||||
Trading containers | 5,834 | 6,673 | ||||||||
Containers held for sale | 41,185 | 25,213 | ||||||||
Prepaid expenses and other current assets | 14,113 | 17,593 | ||||||||
Insurance receivable | 9,068 | - | ||||||||
Deferred taxes | 2,087 | 2,100 | ||||||||
Due from affiliates, net |
447 | - | ||||||||
Total current assets | 348,127 | 339,515 | ||||||||
Restricted cash | 40,406 | 60,310 | ||||||||
Containers, net of accumulated depreciation of $776,175 and $685,667 at 2015 and 2014, respectively
|
3,713,566 | 3,629,882 | ||||||||
Net investment in direct financing and sales-type leases | 263,367 | 280,002 | ||||||||
Fixed assets, net of accumulated depreciation of $9,647 and $9,139 at 2015 and 2014, respectively
|
1,469 | 1,385 | ||||||||
Intangible assets, net of accumulated amortization of $34,470 and $30,968 at 2015 and 2014, respectively
|
21,489 | 24,991 | ||||||||
Interest rate swaps, collars and caps | 12 | 1,568 | ||||||||
Other assets | 20,857 | 21,324 | ||||||||
Total assets | $ | 4,409,293 | $ | 4,358,977 | ||||||
Liabilities and Equity |
||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 7,893 | $ | 5,652 | ||||||
Accrued expenses | 8,585 | 11,935 | ||||||||
Container contracts payable | 35,269 | 63,323 | ||||||||
Other liabilities | 298 | 317 | ||||||||
Due to owners, net | 11,939 | 11,003 | ||||||||
Term loan | 31,600 | 31,600 | ||||||||
Bonds payable | 59,982 | 59,959 | ||||||||
Total current liabilities | 155,566 | 183,789 | ||||||||
Revolving credit facilities | 967,263 | 944,790 | ||||||||
Secured debt facilities | 1,121,100 | 1,017,100 | ||||||||
Term loan | 414,400 | 444,100 | ||||||||
Bonds payable | 453,438 | 498,428 | ||||||||
Interest rate swaps, collars and caps | 12,716 | 2,219 | ||||||||
Income tax payable | 8,483 | 7,696 | ||||||||
Deferred taxes | 8,263 | 5,675 | ||||||||
Other liabilities | 2,596 | 2,815 | ||||||||
Total liabilities | 3,143,825 | 3,106,612 | ||||||||
Equity: | ||||||||||
Textainer Group Holdings Limited shareholders' equity: | ||||||||||
Common shares, $0.01 par value. Authorized 140,000,000 shares; issued and outstanding 57,015,980 and 56,863,094 at 2015 and 2014, respectively
|
565 | 565 | ||||||||
Additional paid-in capital | 384,047 | 378,316 | ||||||||
Accumulated other comprehensive income | (248 | ) | (43 | ) | ||||||
Retained earnings | 818,804 | 813,707 | ||||||||
Total Textainer Group Holdings Limited shareholders’ equity | 1,203,168 | 1,192,545 | ||||||||
Noncontrolling interest | 62,300 | 59,820 | ||||||||
Total equity | 1,265,468 | 1,252,365 | ||||||||
Total liabilities and equity | $ | 4,409,293 | $ | 4,358,977 | ||||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | |||||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||||
Nine Months Ended September 30, 2015 and 2014 | |||||||||||||
(Unaudited) | |||||||||||||
(All currency expressed in United States dollars in thousands) | |||||||||||||
2015 | 2014 | ||||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 89,081 | $ | 151,402 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|||||||||||||
Depreciation expense and container impairment | 159,930 | 130,156 | |||||||||||
Bad debt expense (recovery), net | 5,161 | (1,569 | ) | ||||||||||
Unrealized losses (gains) on interest rate swaps, collars and caps, net | 12,053 | (3,959 | ) | ||||||||||
Amortization of debt issuance costs and accretion of bond discount | 6,028 | 15,035 | |||||||||||
Amortization of intangible assets | 3,502 | 2,843 | |||||||||||
Gains on sale of containers, net | (3,741 | ) | (10,808 | ) | |||||||||
Share-based compensation expense | 5,345 | 5,592 | |||||||||||
Changes in operating assets and liabilities | 201 | (30,149 | ) | ||||||||||
Total adjustments | 188,479 | 107,141 | |||||||||||
Net cash provided by operating activities | 277,560 | 258,543 | |||||||||||
Cash flows from investing activities: | |||||||||||||
Purchase of containers and fixed assets | (447,765 | ) | (492,162 | ) | |||||||||
Proceeds from sale of containers and fixed assets | 94,486 | 105,516 | |||||||||||
Receipt of payments on direct financing and sales-type leases, net of income earned
|
77,743 | 53,463 | |||||||||||
Net cash used in investing activities | (275,536 | ) | (333,183 | ) | |||||||||
Cash flows from financing activities: | |||||||||||||
Proceeds from revolving credit facilities | 345,177 | 211,295 | |||||||||||
Principal payments on revolving credit facilities | (322,704 | ) | (175,323 | ) | |||||||||
Proceeds from secured debt facilities | 160,000 | 341,500 | |||||||||||
Principal payments on secured debt facilities | (56,000 | ) | (34,500 | ) | |||||||||
Proceeds from term loan | - | 500,000 | |||||||||||
Principal payments on term loan | (29,700 | ) | (13,400 | ) | |||||||||
Principal payments on bonds payable | (45,173 | ) | (728,859 | ) | |||||||||
Decrease in restricted cash | 19,904 | 20,023 | |||||||||||
Debt issuance costs | (5,058 | ) | (7,922 | ) | |||||||||
Issuance of common shares upon exercise of share options | 292 | 2,405 | |||||||||||
Excess tax benefit from share-based compensation awards | 94 | 1,375 | |||||||||||
Capital contributions from noncontrolling interest |
1,850 | 4,623 | |||||||||||
Dividends paid to Textainer Group Holdings Limited shareholders | (80,360 | ) | (79,924 | ) | |||||||||
Dividends paid to noncontrolling interest |
(2,994 | ) | - | ||||||||||
Net cash (used in) provided by financing activities | (14,672 | ) | 41,293 | ||||||||||
Effect of exchange rate changes | (205 | ) | 46 | ||||||||||
Net decrease in cash and cash equivalents | (12,853 | ) | (33,301 | ) | |||||||||
Cash and cash equivalents, beginning of the year | 107,067 | 120,223 | |||||||||||
Cash and cash equivalents, end of period | $ | 94,214 | $ | 86,922 | |||||||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Reconciliation
of GAAP financial measures to non-GAAP financial measures
Three and
nine 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 nine 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 (gains) losses 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 | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Reconciliation of adjusted net income: | ||||||||||||||||
Net income attributable to Textainer Group Holdings Limited common shareholders | $ | 9,891 | $ | 54,297 | $ | 85,457 | $ | 146,959 | ||||||||
Adjustments: | ||||||||||||||||
Write-off of unamortized debt issuance costs | - | 390 | 458 | 6,814 | ||||||||||||
Unrealized (gains) losses on interest rate swaps, collars and caps, net | 9,378 | (4,820 | ) | 12,053 | (3,959 | ) | ||||||||||
Impact of reconciling items on income tax expense | (485 | ) | 74 | (593 | ) | (75 | ) | |||||||||
Impact of reconciling item on net income attributable to the noncontrolling interests | (1,105 | ) | 231 | (1,423 | ) | (196 | ) | |||||||||
Adjusted net income | $ | 17,679 | $ | 50,172 | $ | 95,952 | $ | 149,543 | ||||||||
Reconciliation of adjusted net income per diluted common share: | ||||||||||||||||
Net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share |
$ | 0.17 | $ | 0.95 | $ | 1.50 | $ | 2.57 | ||||||||
Adjustments: | ||||||||||||||||
Write-off of unamortized debt issuance costs | - | 0.01 | 0.01 | 0.12 | ||||||||||||
Unrealized (gains) losses on interest rate swaps, collars and caps, net | 0.17 | (0.08 | ) | 0.20 | (0.07 | ) | ||||||||||
Impact of reconciling items on income tax expense | (0.01 | ) | - | (0.01 | ) | - | ||||||||||
Impact of reconciling item on net income attributable to the noncontrolling interests | (0.02 | ) | - | (0.02 | ) | - | ||||||||||
Adjusted net income per diluted common share | $ | 0.31 | $ | 0.88 | $ | 1.68 | $ | 2.62 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Reconciliation of adjusted EBITDA: | ||||||||||||||||
Net income attributable to Textainer Group Holdings Limited common shareholders | $ | 9,891 | $ | 54,297 | $ | 85,457 | $ | 146,959 | ||||||||
Adjustments: | ||||||||||||||||
Interest income | (27 | ) | (31 | ) | (90 | ) | (90 | ) | ||||||||
Interest expense | 18,979 | 18,484 | 57,639 | 67,358 | ||||||||||||
Realized losses on interest rate swaps, collars and caps, net | 3,488 | 2,854 | 9,582 | 7,421 | ||||||||||||
Unrealized (gains) losses on interest rate swaps, collars and caps, net | 9,378 | (4,820 | ) | 12,053 | (3,959 | ) | ||||||||||
Income tax expense (benefit) | 1,625 | 820 | 4,260 | (18,695 | ) | |||||||||||
Net income attributable to the noncontrolling interests | 256 | 2,028 | 3,624 | 4,443 | ||||||||||||
Depreciation expense and container impairment | 63,603 | 47,616 | 159,930 | 130,156 | ||||||||||||
Amortization expense | 1,168 | 985 | 3,502 | 2,843 | ||||||||||||
Impact of reconciling items on net income attributable to the noncontrolling interests | (4,240 | ) | (2,281 | ) | (9,990 | ) | (7,354 | ) | ||||||||
Adjusted EBITDA | $ | 104,121 | $ | 119,952 | $ | 325,967 | $ | 329,082 | ||||||||
Net cash provided by operating activities | $ | 277,560 | $ | 258,543 | ||||||||||||
Adjustments: | ||||||||||||||||
Bad debt expense, net | (5,161 | ) | 1,569 | |||||||||||||
Amortization of debt issuance costs and accretion of bond discount | (6,028 | ) | (15,035 | ) | ||||||||||||
Gains on sale of containers, net | 3,741 | 10,808 | ||||||||||||||
Share-based compensation expense | (5,345 | ) | (5,592 | ) | ||||||||||||
Interest income | (90 | ) | (90 | ) | ||||||||||||
Interest expense | 57,639 | 67,358 | ||||||||||||||
Realized losses on interest rate swaps, collars and caps, net | 9,582 | 7,421 | ||||||||||||||
Income tax expense (benefit) | 4,260 | (18,695 | ) | |||||||||||||
Changes in operating assets and liabilities | (201 | ) | 30,149 | |||||||||||||
Impact of reconciling items on net income attributable to the noncontrolling interests | (9,990 | ) | (7,354 | ) | ||||||||||||
Adjusted EBITDA | $ | 325,967 | $ | 329,082 | ||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20151103005510/en/
Source:
Textainer Group Holdings Limited
Hilliard C. Terry, III, +1
415-658-8214
Executive Vice President and Chief Financial Officer
ir@textainer.com