Financial and Business Summaries
- Lease rental income of
$116.3 million for the quarter, an increase of$4.1 million , or 3.7 percent, from the prior quarter, and$444.9 million for the full year; - Net income attributable to
Textainer Group Holdings Limited common shareholders of$17.2 million for the quarter, or$0.30 per diluted common share, a$1.3 million decrease from the prior quarter. The decrease was largely due to an increase in third quarter net income resulting from a one-time$4.8 million tax benefit that largely reversed in the fourth quarter. Pre-tax income for the quarter increased by$4.3 million from the third quarter; - Net income attributable to
Textainer Group Holdings Limited common shareholders of$19.4 million for the full year, or$0.34 per diluted share, an increase of$71.8 million compared to 2016; - Adjusted net income(1) of
$14.8 million for the quarter, or$0.26 per diluted common share, a$3.8 million decrease from the prior quarter, and$23.2 million for the full year, or$0.41 per diluted share, an increase of$81.1 million from the prior year; - Adjusted EBITDA(1) of
$100.6 million for the quarter, an improvement of$0.1 million from the prior quarter, and$374.5 million for the full year, a$29.5 million year-on-year increase; - Utilization averaged 97.4 percent for the quarter and is currently at 97.9 percent, an improvement of 70 basis points over the prior quarter average and 290 basis points over utilization at the start of 2017; and
Capex orders of approximately$625 million during 2017.
"We continue to see strong operating results and positive momentum leading into the new year. Lease rental income increased for the fourth consecutive quarter and is up 8% compared to the first quarter of the year as we benefit from new container investments and further improvements in utilization. The impact of these investments will grow going forward as more new containers are delivered and picked up by our customers,” stated
“Strong earnings momentum continued as reflected in our
Key Financial Information (in thousands except for per share and TEU amounts):
QTD | Full-Year | ||||||||||||||||||||||||
Q4 2017 | Q3 2017 | Q4 2016 (*) | 2017 | 2016 (*) | |||||||||||||||||||||
Lease rental income | $ | 116,297 | $ | 112,195 | $ | 106,709 | $ | 444,888 | $ | 460,427 | |||||||||||||||
Total revenues | $ | 129,316 | $ | 125,600 | $ | 120,200 | $ | 490,850 | $ | 496,236 | |||||||||||||||
Income from operations | $ | 45,310 | $ | 45,005 | $ | 9,783 | $ | 143,866 | $ | 26,210 | |||||||||||||||
Net income (loss) attributable to Textainer Group Holdings
Limited common shareholders |
$ | 17,211 | $ | 18,481 | $ | (132 | ) | $ | 19,365 | $ | (52,483 | ) | |||||||||||||
Net income (loss) attributable to Textainer Group Holdings
Limited common shareholders per diluted common share |
$ | 0.30 | $ | 0.32 | $ | - | $ | 0.34 | $ | (0.93 | ) | ||||||||||||||
Adjusted net income (loss) (1) | $ | 14,792 | $ | 18,635 | $ | (13,395 | ) | $ | 23,165 | $ | (57,953 | ) | |||||||||||||
Adjusted net income (loss) per diluted common share (1) | $ | 0.26 | $ | 0.33 | $ | (0.24 | ) | $ | 0.41 | $ | (1.02 | ) | |||||||||||||
Adjusted EBITDA (1) | $ | 100,613 | $ | 100,606 | $ | 86,314 | $ | 374,541 | $ | 345,000 | |||||||||||||||
Average fleet utilization | 97.4 | % | 96.7 | % | 94.3 | % | 96.4 | % | 94.7 | % | |||||||||||||||
Total fleet size at end of period (TEU) | 3,279,892 | 3,202,140 | 3,142,556 | ||||||||||||||||||||||
Owned percentage of total fleet at end of period | 78.8 | % | 77.2 | % | 81.0 | % | |||||||||||||||||||
(*) | Certain amounts for the periods ended December 31, 2016 have been restated for immaterial corrections of identified errors pertaining to the calculation of gain on sale of containers, net and to properly account for lease concessions. |
“Adjusted net income (loss)” and “adjusted EBITDA” are Non-GAAP Measures that are reconciled to GAAP measures in footnote 1. “Adjusted net income (loss)” is defined as net income (loss) attributable to
Fourth-Quarter and Full-Year Results
Lease rental income increased
Gain on sale of containers, net increased
Direct container expense decreased
Depreciation expense decreased
Container impairment decreased
Bad debt expense was
The above-mentioned improvements were partially offset by an increase in interest expense including hedging costs of
For the year, we recorded a tax expense of
Outlook
“Three major determinants of our success in 2018 will be growth in container trade, stable container prices and maintenance of current investment return levels. Forecasted growth in 2018 GDP has increased recently to around 4% due to several factors including strengthening European economies and the tax cut in the US. Container trade is expected to grow at an even faster rate. We expect container prices to remain stable given the recent increase in steel prices and ongoing demand. Resale prices are also expected to remain high given the level of new container prices and the limited supply of containers placed on sale as a result of near full utilization. Yields on new leases have slightly moderated as competition increases. However, assuming disciplined ordering by lessors and shipping lines, we expect returns to remain at attractive levels,” continued Mr. Brewer.
“We enter 2018 with great momentum and the support of a favorable market environment. We were the second largest purchaser of containers among our peers in 2017 and have the size, resources, and liquidity to continue investing in new containers while returns remain attractive. We expect our performance in the first quarter of 2018 to be better than the fourth quarter of 2017, with increasing profitability as we move into 2018,” concluded Mr. Brewer.
Investors’ Conference Call and 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) the favorable impact of container investments in future periods; (ii) favorable market conditions in 2018; (iii) appropriateness of current factory inventory to meet second quarter demand; (iv) forecasts of GDP and container trade growth; (v) stability of new container and resale container prices; (vi) yields on new leases remaining at attractive levels; (vii) first quarter of 2018 performance to be better than the fourth quarter of 2017. 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 (Loss) |
||||||||||||||||||||||||
Three Months and Years Ended December 31, 2017 and 2016 |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
(All currency expressed in United States dollars in thousands, except per share amounts) |
||||||||||||||||||||||||
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||
2017 | 2016 (a) | 2017 | 2016 (a) | |||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Lease rental income | $ 116,297 | $ 106,709 | $ 444,888 | $ 460,427 | ||||||||||||||||||||
Management fees | 4,045 | 3,646 | 14,994 | 13,420 | ||||||||||||||||||||
Trading container sales proceeds | 669 | 6,525 | 4,758 | 15,628 | ||||||||||||||||||||
Gain on sale of containers, net | 8,305 | 3,320 | 26,210 | 6,761 | ||||||||||||||||||||
Total revenues | 129,316 | 120,200 | 490,850 | 496,236 | ||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Direct container expense | 14,747 | 17,727 | 60,321 | 62,596 | ||||||||||||||||||||
Cost of trading containers sold | 456 | 4,999 | 3,302 | 15,904 | ||||||||||||||||||||
Depreciation expense | 55,437 | 63,530 | 231,043 | 236,144 | ||||||||||||||||||||
Container impairment | 1,591 | 14,125 | 8,072 | 94,623 | ||||||||||||||||||||
Amortization expense | 1,045 | 937 | 4,092 | 5,053 | ||||||||||||||||||||
General and administrative expense | 8,811 | 6,399 | 30,697 | 26,311 | ||||||||||||||||||||
Short-term incentive compensation expense | 1,314 | 1,174 | 3,481 | 2,242 | ||||||||||||||||||||
Long-term incentive compensation expense | 1,245 | 1,423 | 5,499 | 5,987 | ||||||||||||||||||||
Bad debt (benefit) expense, net | (640) | 103 | 477 | 21,166 | ||||||||||||||||||||
Total operating expenses | 84,006 | 110,417 | 346,984 | 470,026 | ||||||||||||||||||||
Income from operations | 45,310 | 9,783 | 143,866 | 26,210 | ||||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||
Interest expense | (29,089) | (23,972) | (117,475) | (85,215) | ||||||||||||||||||||
Write-off of unamortized deferred debt issuance costs and bond discounts |
(84) | - | (7,550) | - | ||||||||||||||||||||
Interest income | 205 | 126 | 613 | 408 | ||||||||||||||||||||
Realized gains (losses) on interest rate swaps, collars and caps, net | 296 | (1,929) | (1,191) | (8,928) | ||||||||||||||||||||
Unrealized gains on interest rate swaps, collars and caps, net |
2,881 | 15,252 | 4,094 | 6,210 | ||||||||||||||||||||
Other, net |
4 | 1 | 3 | (8) | ||||||||||||||||||||
Net other expense | (25,787) | (10,522) | (121,506) | (87,533) | ||||||||||||||||||||
Income (loss) before income tax and noncontrolling interests |
19,523 | (739) | 22,360 | (61,323) | ||||||||||||||||||||
Income tax (expense) benefit, net | (1,187) | 1,094 | (1,618) | 3,447 | ||||||||||||||||||||
Net income (loss) | 18,336 | 355 | 20,742 | (57,876) | ||||||||||||||||||||
Less: Net (income) loss attributable to the noncontrolling interests |
(1,125) |
|
(487) |
|
(1,377) |
|
5,393 |
|
||||||||||||||||
Net income (loss) attributable to Textainer Group Holdings Limited common shareholders |
$ 17,211 |
|
$ (132) |
|
$ 19,365 |
|
$ (52,483) |
|
||||||||||||||||
Net income (loss) attributable to Textainer Group Holdings |
||||||||||||||||||||||||
Limited common shareholders per share: |
||||||||||||||||||||||||
Basic |
$ 0.30 |
|
$ (0.00) |
|
$ 0.34 |
|
$ (0.93) |
|
||||||||||||||||
Diluted |
$ 0.30 |
|
$ (0.00) |
|
$ 0.34 |
|
$ (0.93) |
|
||||||||||||||||
Weighted average shares outstanding (in thousands): | ||||||||||||||||||||||||
Basic |
56,961 |
|
56,690 |
|
56,845 |
|
56,608 |
|
||||||||||||||||
Diluted |
57,505 |
|
56,690 |
|
57,159 |
|
56,608 |
|
||||||||||||||||
Other comprehensive income (loss): |
|
|||||||||||||||||||||||
Foreign currency translation adjustments |
58 | (151) | 207 | (233) | ||||||||||||||||||||
Comprehensive income (loss) | 18,394 | 204 | 20,949 | (58,109) | ||||||||||||||||||||
Comprehensive (income) loss attributable to the noncontrolling interests |
(1,125) | (487) | (1,377) | 5,393 | ||||||||||||||||||||
Comprehensive income (loss) attributable to Textainer Group Holdings Limited common shareholders |
$ 17,269 | $ (283) | $ 19,572 | $ (52,716) |
(a) | Certain amounts for the periods ended December 31, 2016 have been restated for immaterial corrections of identified errors pertaining to the calculation of gain on sale of containers, net and to properly account for lease concessions. |
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | ||||||||
Condensed Consolidated Balance Sheets |
||||||||
December 31, 2017 and 2016 |
||||||||
(Unaudited) |
||||||||
(All currency expressed in United States dollars in thousands) |
||||||||
2017 | 2016 (a) | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 137,894 | $ | 84,045 | ||||
Accounts receivable, net of allowance for doubtful accounts of $5,775 and $31,844 in 2017 and 2016, respectively |
78,312 | 76,547 | ||||||
Net investment in direct financing and sales-type leases | 56,959 | 64,951 | ||||||
Trading containers | 10,752 | 4,363 | ||||||
Containers held for sale | 22,089 | 25,513 | ||||||
Prepaid expenses and other current assets | 12,243 | 13,584 | ||||||
Insurance receivable | 15,909 | 44,785 | ||||||
Due from affiliates, net | 1,134 | 869 | ||||||
Total current assets | 335,292 | 314,657 | ||||||
Restricted cash | 99,675 | 58,078 | ||||||
Containers, net of accumulated depreciation of $1,172,355 and $990,784 at 2017 and 2016, respectively |
3,791,610 | 3,717,542 | ||||||
Net investment in direct financing and sales-type leases | 125,665 | 172,283 | ||||||
Fixed assets, net of accumulated depreciation of $10,788 and $10,136 at 2017 and 2016, respectively |
2,151 | 1,993 | ||||||
Intangible assets, net of accumulated amortization of $44,279 and $40,762 at 2017 and 2016, respectively |
11,105 | 15,197 | ||||||
Interest rate swaps, collars and caps | 7,787 | 4,816 | ||||||
Deferred taxes | 1,563 | 1,385 | ||||||
Other assets | 5,494 | 8,075 | ||||||
Total assets | $ | 4,380,342 | $ | 4,294,026 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 6,867 | $ | 12,060 | ||||
Accrued expenses | 13,365 | 9,721 | ||||||
Container contracts payable | 131,087 | 11,990 | ||||||
Other liabilities | 235 | 265 | ||||||
Due to owners, net | 11,131 | 18,132 | ||||||
Debt, net of unamortized deferred financing costs of $3,989 and $6,137 at 2017 and 2016, respectively |
233,681 | 205,081 | ||||||
Total current liabilities | 396,366 | 257,249 | ||||||
Debt, net of unamortized deferred financing costs of $20,045 and $10,267 at 2017 and 2016, respectively |
2,756,627 | 2,833,216 | ||||||
Interest rate swaps, collars and caps | 81 | 1,204 | ||||||
Income tax payable | 9,081 | 9,076 | ||||||
Deferred taxes | 5,881 | 6,237 | ||||||
Other liabilities | 2,024 | 2,259 | ||||||
Total liabilities | 3,170,060 | 3,109,241 | ||||||
Equity: | ||||||||
Textainer Group Holdings Limited shareholders’ equity: | ||||||||
Common shares, $0.01 par value. Authorized 140,000,000 shares; 57,727,220 shares issued and 57,097,220 shares outstanding at 2017; 57,417,119 shares issued and 56,787,119 shares outstanding at 2016 |
578 | 575 | ||||||
Additional paid-in capital | 397,821 | 390,780 | ||||||
Treasury shares, at cost, 630,000 shares | (9,149) | (9,149) | ||||||
Accumulated other comprehensive income | (309) | (516) | ||||||
Retained earnings | 763,601 | 744,236 | ||||||
Total Textainer Group Holdings Limited shareholders’ equity | 1,152,542 | 1,125,926 | ||||||
Noncontrolling interest | 57,740 | 58,859 | ||||||
Total equity | 1,210,282 | 1,184,785 | ||||||
Total liabilities and equity | $ | 4,380,342 | $ | 4,294,026 |
(a) | Certain amounts as of December 31, 2016 have been restated for immaterial corrections related to the calculation of gain on sale of containers, net, to properly account for lease concessions and to reclassify debt balances to conform with the 2017 presentation. |
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | ||||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||||
Years Ended December 31, 2017 and 2016 |
||||||||||
(Unaudited) |
||||||||||
(All currency expressed in United States dollars in thousands) |
||||||||||
2017 | 2016 (a) | |||||||||
Cash flows from operating activities: | ||||||||||
Net income (loss) | $ | 20,742 | $ | (57,876 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||
Depreciation expense | 231,043 | 236,144 | ||||||||
Container impairment | 8,072 | 94,623 | ||||||||
Bad debt expense, net | 477 | 21,166 | ||||||||
Unrealized gains on interest rate swaps, collars and caps, net | (4,094 | ) | (6,210 | ) | ||||||
Amortization and write-off of unamortized deferred debt issuance costs and accretion of bond discount |
20,814 | 9,704 | ||||||||
Amortization of intangible assets | 4,092 | 5,053 | ||||||||
Gain on sale of containers, net | (26,210 | ) | (6,761 | ) | ||||||
Share-based compensation expense | 6,083 | 6,573 | ||||||||
Changes in operating assets and liabilities | (10,044 | ) | (24,522 | ) | ||||||
Total adjustments | 230,233 | 335,770 | ||||||||
Net cash provided by operating activities | 250,975 | 277,894 | ||||||||
Cash flows from investing activities: | ||||||||||
Purchase of containers and fixed assets | (300,125 | ) | (505,528 | ) | ||||||
Proceeds from sale of containers and fixed assets | 135,299 | 126,560 | ||||||||
Receipt of payments on direct financing and sales-type leases, net of income earned | 66,846 | 90,343 | ||||||||
Insurance proceeds received for unrecoverable containers | 12,616 | 8,195 | ||||||||
Net cash provided by (used in) investing activities | (85,364 | ) | (280,430 | ) | ||||||
Cash flows from financing activities: | ||||||||||
Proceeds from debt | 1,729,580 | 582,500 | ||||||||
Principal payments on debt | (1,770,715 | ) | (551,586 | ) | ||||||
Debt issuance costs | (27,702 | ) | (5,969 | ) | ||||||
Issuance of common shares upon exercise of share options | 961 | — | ||||||||
Net tax benefit from share-based compensation awards | — | (810 | ) | |||||||
Dividends paid to noncontrolling interest | (2,496 | ) | — | |||||||
Dividends paid to shareholders | — | (28,754 | ) | |||||||
Net cash used in financing activities | (70,372 | ) | (4,619 | ) | ||||||
Effect of exchange rate changes | 207 | (233 | ) | |||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 95,446 | (7,388 | ) | |||||||
Cash, cash equivalents and restricted cash, beginning of the year | 142,123 | 149,511 | ||||||||
Cash, cash equivalents and restricted cash, end of the period | $ | 237,569 | $ | 142,123 |
(a) | Certain amounts for the period ended December 31, 2016 have been restated for immaterial corrections of identified errors pertaining to the calculation of gain on sale of containers, net and to properly account for lease concessions, to reclassify debt balances in order to conform with the 2017 presentation and for the adoption of Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments and Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. |
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Reconciliation of GAAP financial measures to non-GAAP financial measures
Three Months and Years Ended December 31, 2017 and 2016
(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 months and years ended December 31, 2017 and 2016, including:
(a) net income (loss) attributable to
(b) net cash provided by operating activities to Adjusted EBITDA;
(c) net income (loss) attributable to Textainer Group Holdings Limited common shareholders to adjusted net income (loss) (defined as net income (loss) attributable to
(d) net income (loss) 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 (loss), 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 (loss) may be a useful performance measure because
Management also believes that adjusted net income and adjusted net income (loss) per diluted common share are useful in evaluating our operating performance because unrealized 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 (loss) or adjusted net income (loss) 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, | |||||||||||||||||||
2017 | 2016 (a) | 2017 | 2016 (a) | |||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||
Reconciliation of adjusted net income (loss): | ||||||||||||||||||||
Net income (loss) attributable to Textainer Group Holdings
Limited common shareholders |
$ | 17,211 | $ | (132 | ) | $ | 19,365 | $ | (52,483 | ) | ||||||||||
Adjustments: | ||||||||||||||||||||
Write-off of unamortized deferred debt issuance costs and bond discounts | 84 | — | 7,550 | — | ||||||||||||||||
Unrealized gains on interest rate swaps, collars and caps, net | (2,881 | ) | (15,252 | ) | (4,094 | ) | (6,210 | ) | ||||||||||||
Impact of reconciling items on income tax expense (benefit) | 47 | 253 | (56 | ) | 104 | |||||||||||||||
Impact of reconciling items on net income (loss) attributable to the noncontrolling interests |
331 | 1,736 | 400 | 636 | ||||||||||||||||
Adjusted net income (loss) | $ | 14,792 | $ | (13,395 | ) | $ | 23,165 | $ | (57,953 | ) | ||||||||||
Reconciliation of adjusted net income (loss) per diluted common share: | ||||||||||||||||||||
Net income (loss) attributable to Textainer Group Holdings
Limited common shareholders per diluted common share |
$ | 0.30 | $ | - | $ | 0.34 | $ | (0.93 | ) | |||||||||||
Adjustments: | ||||||||||||||||||||
Write-off of unamortized deferred debt issuance costs and bond discounts | - | — | 0.13 | — | ||||||||||||||||
Unrealized gains on interest rate swaps, collars and caps, net | (0.05 | ) | (0.27 | ) | (0.07 | ) | (0.10 | ) | ||||||||||||
Impact of reconciling items on income tax expense (benefit) | — | — | — | — | ||||||||||||||||
Impact of reconciling items on net income (loss) attributable to
the noncontrolling interests |
0.01 | 0.03 | 0.01 | 0.01 | ||||||||||||||||
Adjusted net income (loss) per diluted common share | $ | 0.26 | $ | (0.24 | ) | $ | 0.41 | $ | (1.02 | ) |
(a) | Certain amounts for the periods ended December 31, 2016 have been restated for immaterial corrections of identified errors pertaining to the calculation of gain on sale of containers, net and to properly account for lease concessions. |
Three Months Ended | Years Ended | |||||||||||
December 31, | December 31, | |||||||||||
2017 | 2016 (a) | 2017 | 2016 (a) | |||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||
(Unaudited) | (Unaudited) | |||||||||||
Reconciliation of adjusted EBITDA: | ||||||||||||
Net income (loss) attributable to Textainer Group Holdings
Limited common shareholders |
$ 17,211 | $ (132) | $ 19,365 | $ (52,483) | ||||||||
Adjustments: | ||||||||||||
Interest income | (205) | (126) | (613) | (408) | ||||||||
Interest expense | 29,089 | 23,972 | 117,475 | 85,215 | ||||||||
Write-off of unamortized deferred debt issuance costs and bond discounts | 84 | — | 7,550 | — | ||||||||
Realized (gains) losses on interest rate swaps, collars and caps, net | (296) | 1,929 | 1,191 | 8,928 | ||||||||
Unrealized gains on interest rate swaps, collars and caps, net | (2,881) | (15,252) | (4,094) | (6,210) | ||||||||
Income tax expense (benefit) | 1,187 | (1,094) | 1,618 | (3,447) | ||||||||
Net income (loss) attributable to the noncontrolling interests | 1,125 | 487 | 1,377 | (5,393) | ||||||||
Depreciation expense | 55,437 | 63,530 | 231,043 | 236,144 | ||||||||
Container impairment | 1,591 | 14,125 | 8,072 | 94,623 | ||||||||
Amortization expense | 1,045 | 937 | 4,092 | 5,053 | ||||||||
Impact of reconciling items on net income (loss) attributable to
the noncontrolling interests |
(2,774) | (2,062) | (12,535) | (17,022) | ||||||||
Adjusted EBITDA | $ 100,613 | $ 86,314 | $ 374,541 | $ 345,000 | ||||||||
Net cash provided by operating activities | $ 250,975 | $ 277,894 | ||||||||||
Adjustments: | ||||||||||||
Bad debt expense, net | (477) | (21,166) | ||||||||||
Amortization and write-off of unamortized deferred debt issuance costs and accretion of bond discount |
(20,814) | (9,704) | ||||||||||
Gain on sale of containers, net | 26,210 | 6,761 | ||||||||||
Share-based compensation expense | (6,083) | (6,573) | ||||||||||
Interest income | (613) | (408) | ||||||||||
Interest expense | 117,475 | 85,215 | ||||||||||
Write-off of unamortized deferred debt issuance costs and bond discounts | 7,550 | — | ||||||||||
Realized losses on interest rate swaps, collars and caps, net | 1,191 | 8,928 | ||||||||||
Income tax expense (benefit) | 1,618 | (3,447) | ||||||||||
Changes in operating assets and liabilities | 10,044 | 24,522 | ||||||||||
Impact of reconciling items on net income (loss) attributable to the noncontrolling interests |
(12,535) | (17,022) | ||||||||||
Adjusted EBITDA | $ 374,541 | $ 345,000 |
(a) | Certain amounts for the periods ended December 31, 2016 have been restated for immaterial corrections of identified errors pertaining to the calculation of gain on sale of containers, net and to properly account for lease concessions, and for the adoption of Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20180215005362/en/
Source:
Textainer Group Holdings Limited
Hilliard C. Terry, III, +1 415-658-8214
Executive Vice President and Chief Financial Officer
ir@textainer.com