tgh-6k_20190930.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO

RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

Commission File Number 001-33725

 

Textainer Group Holdings Limited

(Translation of Registrant’s name into English)

 

Century House

16 Par-La-Ville Road

Hamilton HM 08

Bermuda

(441) 296-2500

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F      Form 40-F  

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  Yes      No  

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable

 

 

 

 

 

 

 

1


 

TEXTAINER GROUP HOLDINGS LIMITED

Quarterly Report on Form 6-K for the Three and Nine Months Ended September 30, 2019

Table of Contents

 

 

 

Page

 

 

 

Information Regarding Forward-Looking Statements; Cautionary Language

 

3

 

 

 

Item 1. Condensed Consolidated Financial Statements (Unaudited):

 

4

 

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2019 and 2018

 

4

 

 

 

 

 

Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018

 

5

 

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the Nine Months Ended September 30, 2019 and 2018

 

6

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2019 and 2018

 

7

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements

 

8

 

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

31

 

 

 

Item 3. Quantitative and Qualitative Disclosures About Market and Credit Risk

 

44

 

 

 

Item 4. Risk Factors

 

44

 

 

 

Signature

 

45

 

 

2


INFORMATION REGARDING FORWARD-LOOKING STATEMENTS; CAUTIONARY LANGUAGE

This Quarterly Report on Form 6-K, including the section entitled Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, contains forward-looking statements within the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not statements of historical facts and may relate to, but are not limited to, expectations or estimates of future operating results or financial performance, capital expenditures, regulatory compliance, plans for growth and future operations, as well as assumptions relating to the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “intend,” “potential,” “continue” or the negative of these terms or other similar terminology. The forward-looking statements contained in this Quarterly Report on Form 6-K include, but are not limited to, statements regarding  (i) factors that are likely to continue to affect our performance and (ii) our belief that, assuming that our lenders remain solvent that our cash flow from operations, proceeds from the sale of containers and borrowing availability under our debt facilities are sufficient to meet our liquidity needs, including for the payment of dividends, for the next twelve months.

Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy, and actual results may differ materially from those we anticipated due to a number of uncertainties, many of which cannot be foreseen. Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including, among others, the risks we face that are described in the section entitled Item 3, “Key Information -- Risk Factors” included in our Annual Report on Form 20-F for the fiscal year ended December 31, 2018 filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 25, 2019 (our “2018 Form 20-F”).

We believe that it is important to communicate our expectations about the future to potential investors, shareholders and other readers. However, there may be events in the future that we are not able to accurately predict or control and that may cause actual events or results to differ materially from the expectations expressed in or implied by our forward-looking statements. The risk factors listed in Item 3, “Key Information -- Risk Factors” included in our 2018 Form 20-F, as well as any cautionary language in this Quarterly Report on Form 6-K, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Before you decide to buy, hold or sell our common shares, you should be aware that the occurrence of the events described in Item 3, “Key Information -- Risk Factors” included in our 2018 Form 20-F and elsewhere in this Quarterly Report on Form 6-K could negatively impact our business, cash flows, results of operations, financial condition and share price. Potential investors, shareholders and other readers are cautioned not to place undue reliance on our forward-looking statements.

Forward-looking statements regarding our present plans or expectations for fleet size, management contracts, container purchases, sources and availability of financing, and growth involve risks and uncertainties relative to return expectations and related allocation of resources, and changing economic or competitive conditions, as well as the negotiation of agreements with container investors, which could cause actual results to differ from present plans or expectations, and such differences could be material. Similarly, forward-looking statements regarding our present expectations for operating results and cash flow involve risks and uncertainties related to factors such as utilization rates, per diem rates, container prices, demand for containers by container shipping lines, supply and other factors discussed under Item 3, “Key Information -- Risk Factors” included in our 2018 Form 20-F or elsewhere in this Quarterly Report on Form 6-K, which could also cause actual results to differ from present plans. Such differences could be material.

All future written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. New risks and uncertainties arise from time to time, and we cannot predict those events or how they may affect us. The forward-looking statements contained in this Quarterly Report on Form 6-K speak only as of, and are based on information available to us on, the date of the filing of this Quarterly Report on Form 6-K. We assume no obligation to, and do not plan to, update any forward-looking statements after the date of this Quarterly Report on Form 6-K as a result of new information, future events or developments, except as expressly required by U.S. federal securities laws. You should read this Quarterly Report on Form 6-K and the documents that we reference and have furnished as exhibits with the understanding that we cannot guarantee future results, levels of activity, performance or achievements and that actual results may differ materially from what we expect.  

In this Quarterly Report on Form 6-K, unless otherwise specified, all monetary amounts are in U.S. dollars. To the extent that any monetary amounts are not denominated in U.S. dollars, they have been translated into U.S. dollars in accordance with our accounting policies as described in Item 18, “Financial Statements” included in our 2018 Form 20-F.

 

 

3


ITEM 1.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

Three and Nine Months Ended September 30, 2019 and 2018

(Unaudited)

(All currency expressed in United States dollars in thousands, except per share amounts)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease rental income - owned fleet

 

$

129,372

 

 

$

129,834

 

 

$

387,651

 

 

$

371,639

 

Lease rental income - managed fleet (1)

 

 

25,293

 

 

 

27,926

 

 

 

77,650

 

 

 

83,950

 

Lease rental income

 

 

154,665

 

 

 

157,760

 

 

 

465,301

 

 

 

455,589

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management fees, non-leasing (2)

 

 

1,582

 

 

 

1,994

 

 

 

5,823

 

 

 

6,279

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading container sales proceeds (2)

 

 

11,852

 

 

 

7,123

 

 

 

40,679

 

 

 

12,681

 

Cost of trading containers sold (2)

 

 

(9,469

)

 

 

(5,319

)

 

 

(32,371

)

 

 

(10,535

)

Trading container margin

 

 

2,383

 

 

 

1,804

 

 

 

8,308

 

 

 

2,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of owned fleet containers, net

 

 

6,092

 

 

 

8,450

 

 

 

18,263

 

 

 

26,480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct container expense - owned fleet (2)

 

 

11,810

 

 

 

14,072

 

 

 

34,071

 

 

 

41,105

 

Distribution expense to managed fleet container investors (1)

 

 

23,318

 

 

 

25,889

 

 

 

71,535

 

 

 

77,651

 

Depreciation expense (2)

 

 

67,644

 

 

 

68,821

 

 

 

194,243

 

 

 

184,699

 

Container lessee default (recovery) expense, net (2)

 

 

(184

)

 

 

10,869

 

 

 

7,718

 

 

 

11,005

 

Amortization expense

 

 

481

 

 

 

439

 

 

 

1,576

 

 

 

3,219

 

General and administrative expense (2)

 

 

9,364

 

 

 

12,487

 

 

 

28,638

 

 

 

33,665

 

Bad debt (recovery) expense, net

 

 

(1,198

)

 

 

275

 

 

 

2,650

 

 

 

1,058

 

Gain on insurance recovery and legal settlement

 

 

 

 

 

 

 

 

(841

)

 

 

 

Total operating expenses

 

 

111,235

 

 

 

132,852

 

 

 

339,590

 

 

 

352,402

 

Income from operations

 

 

53,487

 

 

 

37,156

 

 

 

158,105

 

 

 

138,092

 

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(39,970

)

 

 

(35,706

)

 

 

(115,699

)

 

 

(101,838

)

Write-off of unamortized deferred debt issuance costs

 

 

 

 

 

(881

)

 

 

 

 

 

(881

)

Interest income

 

 

680

 

 

 

446

 

 

 

2,047

 

 

 

1,153

 

Realized gain on interest rate swaps, collars and caps, net

 

 

170

 

 

 

1,268

 

 

 

2,709

 

 

 

3,951

 

Unrealized (loss) gain on interest rate swaps, collars and caps, net

 

 

(2,478

)

 

 

22

 

 

 

(18,315

)

 

 

2,248

 

Other, net

 

 

(10

)

 

 

(1

)

 

 

(10

)

 

 

(1

)

Net other expense

 

 

(41,608

)

 

 

(34,852

)

 

 

(129,268

)

 

 

(95,368

)

Income before income tax and noncontrolling interests

 

 

11,879

 

 

 

2,304

 

 

 

28,837

 

 

 

42,724

 

Income tax (expense) benefit, net

 

 

(1,318

)

 

 

224

 

 

 

(1,470

)

 

 

(1,262

)

Net income

 

 

10,561

 

 

 

2,528

 

 

 

27,367

 

 

 

41,462

 

Less: Net loss (income) attributable to the noncontrolling interests

 

 

17

 

 

 

(615

)

 

 

575

 

 

 

(3,325

)

Net income attributable to Textainer Group Holdings

   Limited common shareholders

 

$

10,578

 

 

$

1,913

 

 

$

27,942

 

 

$

38,137

 

Net income attributable to Textainer Group Holdings Limited

   common shareholders per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.18

 

 

$

0.03

 

 

$

0.49

 

 

$

0.67

 

Diluted

 

$

0.18

 

 

$

0.03

 

 

$

0.49

 

 

$

0.66

 

Weighted average shares outstanding (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

57,503

 

 

 

57,212

 

 

 

57,493

 

 

 

57,144

 

Diluted

 

 

57,598

 

 

 

57,426

 

 

 

57,586

 

 

 

57,438

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(119

)

 

 

(93

)

 

 

(52

)

 

 

(82

)

Comprehensive income

 

 

10,442

 

 

 

2,435

 

 

 

27,315

 

 

 

41,380

 

Comprehensive loss (income) attributable to the noncontrolling interests

 

 

17

 

 

 

(615

)

 

 

575

 

 

 

(3,325

)

Comprehensive income attributable to Textainer Group Holdings

    Limited common shareholders

 

$

10,459

 

 

$

1,820

 

 

$

27,890

 

 

$

38,055

 

 

(1)  Certain amounts for the three and nine months ended September 30, 2018 have been reclassified to report the gross amounts of lease rental income and expenses for the managed fleet instead of the net presentation (see Note 3 “Immaterial Reclassification and Adjustment of Prior Periods”).

(2)  Amounts for the three and nine months ended September 30, 2018 have been reclassified to conform with 2019 presentation (see Note 2 (g) “Reclassifications and Changes in Presentation”).

See accompanying notes to condensed consolidated financial statements.

4


TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

September 30, 2019 and December 31, 2018

(Unaudited)

(All currency expressed in United States dollars in thousands)

 

 

 

2019

 

 

2018

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

163,387

 

 

$

137,298

 

Accounts receivable, net of allowance for doubtful accounts of $7,068 and $5,729, respectively (1)

 

 

124,505

 

 

 

134,225

 

Net investment in direct financing and sales-type leases

 

 

36,811

 

 

 

39,270

 

Container leaseback financing receivable

 

 

18,464

 

 

 

-

 

Trading containers

 

 

26,549

 

 

 

40,852

 

Containers held for sale

 

 

27,452

 

 

 

21,874

 

Prepaid expenses and other current assets (1)

 

 

15,303

 

 

 

23,139

 

Due from affiliates, net

 

 

1,666

 

 

 

1,692

 

Total current assets

 

 

414,137

 

 

 

398,350

 

Restricted cash

 

 

104,087

 

 

 

87,630

 

Containers, net of accumulated depreciation of $1,415,081 and $1,322,221, respectively

 

 

4,117,631

 

 

 

4,134,016

 

Net investment in direct financing and sales-type leases

 

 

223,723

 

 

 

127,790

 

Container leaseback financing receivable

 

 

248,627

 

 

 

-

 

Fixed assets, net of accumulated depreciation of $11,975 and $11,525, respectively

 

 

1,333

 

 

 

2,066

 

Intangible assets, net of accumulated amortization of $44,842 and $43,266, respectively

 

 

5,808

 

 

 

7,384

 

Interest rate swaps, collars and caps

 

 

426

 

 

 

5,555

 

Deferred taxes

 

 

2,080

 

 

 

2,087

 

Other assets

 

 

14,441

 

 

 

3,891

 

Total assets

 

$

5,132,293

 

 

$

4,768,769

 

Liabilities and Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses (1)

 

$

24,009

 

 

$

27,297

 

Container contracts payable

 

 

7,005

 

 

 

42,710

 

Other liabilities

 

 

2,262

 

 

 

219

 

Due to container investors, net (1)

 

 

27,742

 

 

 

30,672

 

Debt, net of unamortized deferred financing costs of $7,926 and $5,738, respectively

 

 

278,707

 

 

 

191,689

 

Total current liabilities

 

 

339,725

 

 

 

292,587

 

Debt, net of unamortized deferred financing costs of $22,055 and $22,248, respectively

 

 

3,469,651

 

 

 

3,218,138

 

Interest rate swaps, collars and caps

 

 

16,825

 

 

 

3,639

 

Income tax payable

 

 

9,845

 

 

 

9,570

 

Deferred taxes

 

 

7,992

 

 

 

7,039

 

Other liabilities

 

 

26,917

 

 

 

1,805

 

Total liabilities

 

 

3,870,955

 

 

 

3,532,778

 

Equity:

 

 

 

 

 

 

 

 

Textainer Group Holdings Limited shareholders' equity:

 

 

 

 

 

 

 

 

Common shares, $0.01 par value. Authorized 140,000,000 shares; 58,079,743 shares issued and 57,208,954 shares outstanding at 2019; 58,032,164 shares issued and 57,402,164 shares outstanding at 2018

 

 

581

 

 

 

581

 

Treasury shares, at cost, 870,789 and 630,000 shares, respectively

 

 

(11,707

)

 

 

(9,149

)

Additional paid-in capital

 

 

409,417

 

 

 

406,083

 

Accumulated other comprehensive loss

 

 

(488

)

 

 

(436

)

Retained earnings

 

 

837,676

 

 

 

809,734

 

Total Textainer Group Holdings Limited shareholders’ equity

 

 

1,235,479

 

 

 

1,206,813

 

Noncontrolling interests

 

 

25,859

 

 

 

29,178

 

Total equity

 

 

1,261,338

 

 

 

1,235,991

 

Total liabilities and equity

 

$

5,132,293

 

 

$

4,768,769

 

 

 

(1) Certain amounts for the year ended December 31, 2018 have been reclassified to report the gross amounts of accounts receivable, prepaid expenses, accounts payable and accrued expenses arising from the managed fleet instead of the net presentation (see Note 3 “Immaterial Reclassification and Adjustment of Prior Periods” and Note 2 (g) “Reclassifications and Changes in Presentation”).

 

See accompanying notes to condensed consolidated financial statements.

5


TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES

Condensed Consolidated Statements of Shareholders’ Equity

Nine Months Ended September 30, 2019 and 2018

(Unaudited)

(All currency expressed in United States dollars in thousands)

 

 

 

Textainer Group Holdings Limited Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

other

 

 

 

 

 

 

Textainer Group

 

 

 

 

 

 

 

 

 

 

 

Common shares

 

 

Treasury shares

 

 

paid-in

 

 

comprehensive

 

 

Retained

 

 

Holdings Limited

 

 

Noncontrolling

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

capital

 

 

loss

 

 

earnings

 

 

shareholders' equity

 

 

interests

 

 

equity

 

Balances, December 31, 2017 (1)

 

 

57,727,220

 

 

$

578

 

 

 

(630,000

)

 

$

(9,149

)

 

$

397,821

 

 

$

(309

)

 

$

759,356

 

 

$

1,148,297

 

 

$

57,740

 

 

$

1,206,037

 

Dividends paid to noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,996

)

 

 

(1,996

)

Restricted share units vested

 

 

46,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of share options

 

 

5,632

 

 

 

 

 

 

 

 

 

 

 

 

52

 

 

 

 

 

 

 

 

 

52

 

 

 

 

 

 

52

 

Share-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,334

 

 

 

 

 

 

 

 

 

6,334

 

 

 

 

 

 

6,334

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Textainer Group

   Holdings Limited common shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38,137

 

 

 

38,137

 

 

 

 

 

 

38,137

 

Net income attributable to noncontrolling

   interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,325

 

 

 

3,325

 

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(82

)

 

 

 

 

 

(82

)

 

 

 

 

 

(82

)

Total comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

41,380

 

Balances, September 30, 2018

 

 

57,779,493

 

 

 

578

 

 

 

(630,000

)

 

 

(9,149

)

 

 

404,207

 

 

 

(391

)

 

 

797,493

 

 

 

1,192,738

 

 

 

59,069

 

 

 

1,251,807

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances, December 31, 2018

 

 

58,032,164

 

 

 

581

 

 

 

(630,000

)

 

 

(9,149

)

 

 

406,083

 

 

 

(436

)

 

 

809,734

 

 

 

1,206,813

 

 

 

29,178

 

 

 

1,235,991

 

Dividends paid to noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,744

)

 

 

(2,744

)

Purchase of treasury shares

 

 

 

 

 

 

 

 

(240,789

)

 

 

(2,558

)

 

 

 

 

 

 

 

 

 

 

 

(2,558

)

 

 

 

 

 

(2,558

)

Restricted share units vested

 

 

35,090

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of share options

 

 

12,489

 

 

 

 

 

 

 

 

 

 

 

 

121

 

 

 

 

 

 

 

 

 

121

 

 

 

 

 

 

121

 

Share-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,213

 

 

 

 

 

 

 

 

 

3,213

 

 

 

 

 

 

3,213

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Textainer Group

   Holdings Limited common shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,942

 

 

 

27,942

 

 

 

 

 

 

27,942

 

Net loss attributable to noncontrolling

   interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(575

)

 

 

(575

)

Foreign currency translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(52

)

 

 

 

 

 

(52

)

 

 

 

 

 

(52

)

Total comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,315

 

Balances, September 30, 2019

 

 

58,079,743

 

 

$

581

 

 

 

(870,789

)

 

$

(11,707

)

 

$

409,417

 

 

$

(488

)

 

$

837,676

 

 

$

1,235,479

 

 

$

25,859

 

 

$

1,261,338

 

(1)

Certain amounts for the year ended December 31, 2017 have been adjusted to defer acquisition fees of the managed fleet as earned over the deemed lease term (see Note 3 “Immaterial Reclassification and Adjustment of Prior Periods”).

See accompanying notes to condensed consolidated financial statements.

 

 

6


TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

Nine Months Ended September 30, 2019 and 2018

(Unaudited)

(All currency expressed in United States dollars in thousands)

 

 

 

Nine Months Ended September 30,

 

 

 

2019

 

 

2018 (1)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

27,367

 

 

$

41,462

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation expense

 

 

194,243

 

 

 

184,699

 

Container write-off from lessee default, net

 

 

7,154

 

 

 

8,426

 

Bad debt expense, net

 

 

2,650

 

 

 

1,058

 

Unrealized loss (gain) on interest rate swaps, collars and caps, net

 

 

18,315

 

 

 

(2,248

)

Amortization and write-off of unamortized deferred debt issuance costs and

   accretion of bond discounts