Generates Record Revenue and Net Income;
Raises Dividend by 7.4% to
Fourth Quarter and Year 2010 Highlights
- Paid a
$0.27 per common share dividend onNovember 24, 2010 to all shareholders of record as ofNovember 15, 2010 ; - Declared a dividend increase of 7.4% to
$0.29 per common share, payable onMarch 1, 2011 to all shareholders of record as ofFebruary 22, 2011 , increasing total dividends declared since theOctober 2007 IPO to$3.29 per common share; - Recorded net income attributable to
Textainer Group Holdings Limited common shareholders of$40.0 million , or$0.81 per diluted common share, for the fourth quarter, and$120.0 million , or$2.43 per diluted common share, for the full year endedDecember 31, 2010 ; - Recorded net income attributable to
Textainer Group Holdings Limited common shareholders excluding unrealized (gains) losses on interest rate swaps, net(1) of$35.7 million , or$0.72 per diluted common share, for the fourth quarter, and$123.5 million , or$2.50 per diluted common share, for the full year endedDecember 31, 2010 , the highest in our company's history; - Increased average fleet utilization to 98.0% for the fourth quarter from 86.4% for the fourth quarter of 2009;
- Extended the term and increased the size of the securitization facility of our principal asset-owning subsidiary,
Textainer Marine Containers Limited , to a total revolving commitment of$750.0 million from$475.0 million for a two-year revolving period; - Utilized balance sheet strength to purchase a total of 214,000 Twenty-Foot Equivalent Units ("TEU") of new containers delivered in 2010, representing a total of
$503.7 million in capital expenditures, the highest in our company's history; - Purchased 40,000 TEU of used containers that we previously managed, resulting in a transaction that was immediately accretive to earnings; and
- Increased our owned portion of the total fleet to 51% as of
December 31, 2010 from 45% as ofDecember 31, 2009 .
Total revenue for the fourth quarter 2010 was
Net income attributable to
Net income attributable to
Net income attributable to
Net income attributable to
Mr. Maccarone concluded, "As a result of our record results, balance sheet strength and the favorable market trends in the container leasing industry, Textainer's Board declared a dividend increase for the fourth consecutive quarter. The
Outlook
Industry
We expect new container production to be approximately 3.5 million TEU in 2011, compared to approximately 2.4 million TEU in 2010, due to stronger replacement demand, vessel capacity growth of approximately 6.8% and cargo volume growth of approximately 9.7%. In 2010, the container leasing industry purchased about two-thirds of all new container production as shipping lines were capital constrained. We expect the leasing sector to be major purchasers and suppliers of new containers again in 2011 as shipping lines continue to rely on leasing companies, such as
Strategic Focus
Our record year of new container purchases in 2010 consisted of 214,000 TEU at a cost of
With the extension of the term of the securitization facility of
Dividend
On
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 to be able to provide its shareholders with a sizeable contracted revenue stream; (ii) Textainer's intention to utilize its considerable financial flexibility, including nearly
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | |||||||||||||||||
Condensed Consolidated Balance Sheets | |||||||||||||||||
December 31, 2010 and 2009 | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(All currency expressed in United States dollars in thousands) | |||||||||||||||||
2010 | 2009 | ||||||||||||||||
|
|
||||||||||||||||
Assets | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 57,081 | $ | 56,819 | |||||||||||||
Accounts receivable, net of allowance for doubtful accounts of | |||||||||||||||||
$8,653 and $8,347 in 2010 and 2009, respectively | 63,511 | 68,896 | |||||||||||||||
Net investment in direct financing and sales-type leases | 19,117 | 17,225 | |||||||||||||||
Trading containers | 404 | 1,271 | |||||||||||||||
Containers held for sale | 2,883 | 9,756 | |||||||||||||||
Prepaid expenses | 8,603 | 1,785 | |||||||||||||||
Deferred taxes | 1,895 | 1,463 | |||||||||||||||
Due from affiliates, net | - | 126 | |||||||||||||||
Total current assets |
|
153,494 | 157,341 | ||||||||||||||
Restricted cash | 15,034 | 6,586 | |||||||||||||||
Containers, net of accumulated depreciation of $361,791 and $343,513 | |||||||||||||||||
at 2010 and 2009, respectively | 1,437,259 | 1,061,866 |
| ||||||||||||||
Net investment in direct financing and sales-type leases | 72,224 | 63,326 | |||||||||||||||
Fixed assets, net of accumulated depreciation of $8,820 and $8,512 | |||||||||||||||||
at 2010 and 2009, respectively | 1,804 | 1,986 | |||||||||||||||
Intangible assets, net of accumulated amortization of $27,441 and $20,897 | |||||||||||||||||
at 2010 and 2009, respectively | 60,122 | 66,692 | |||||||||||||||
Interest rate swaps | 1,320 | 731 | |||||||||||||||
Other assets | 5,950 | 1,495 | |||||||||||||||
Total assets |
|
$ | 1,747,207 | $ | 1,360,023 |
| |||||||||||
Liabilities and Equity | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | 6,296 | $ | 9,078 | |||||||||||||
Accrued expenses | 11,988 | 9,740 | |||||||||||||||
Container contracts payable | 98,731 | 13,140 | |||||||||||||||
Deferred revenue | 6,855 | 7,948 | |||||||||||||||
Due to owners, net | 17,545 | 14,141 | |||||||||||||||
Secured debt facility | - | 16,500 | |||||||||||||||
Bonds payable | 51,500 | 51,500 | |||||||||||||||
Total current liabilities |
|
192,915 | 122,047 | ||||||||||||||
Revolving credit facility | 104,000 | 79,000 | |||||||||||||||
Secured debt facility | 558,127 | 313,021 | |||||||||||||||
Bonds payable | 175,570 | 226,875 | |||||||||||||||
Deferred revenue | 2,994 | 11,294 | |||||||||||||||
Interest rate swaps | 13,581 | 8,971 | |||||||||||||||
Income tax payable | 20,821 | 18,656 | |||||||||||||||
Deferred taxes | 8,632 | 6,894 | |||||||||||||||
Total liabilities |
|
1,076,640 | 786,758 | ||||||||||||||
Equity: | |||||||||||||||||
Textainer Group Holdings Limited shareholders' equity: | |||||||||||||||||
Common shares, $0.01 par value. Authorized 140,000,000 shares; issued and | |||||||||||||||||
outstanding 48,318,058 and 47,760,771 at 2010 and 2009, respectively | 483 | 478 | |||||||||||||||
Additional paid-in capital | 181,602 | 170,497 | |||||||||||||||
Accumulated other comprehensive loss | (52 | ) | (111 | ) | |||||||||||||
Retained earnings | 401,849 | 329,449 | |||||||||||||||
Total Textainer Group Holdings Limited shareholders' equity |
|
583,882 | 500,313 | ||||||||||||||
Noncontrolling interest | 86,685 | 72,952 | |||||||||||||||
Total equity |
|
670,567 | 573,265 | ||||||||||||||
Total liabilities and equity |
|
$ | 1,747,207 | $ | 1,360,023 | ||||||||||||
|
|
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Income | ||||||||||||||||||||||||||||||||||
Three Months and Years Ended December 31, 2010 and 2009 | ||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||
(All currency expressed in United States dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||
Three Months Ended |
Years Ended | |||||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||
Lease rental income | $ | 68,237 | $ | 51,060 | $ | 235,827 | $ | 189,779 | ||||||||||||||||||||||||||
Management fees | 8,072 | 6,581 | 29,137 | 25,228 | ||||||||||||||||||||||||||||||
Trading container sales proceeds | 1,445 | 5,729 | 11,291 | 11,843 | ||||||||||||||||||||||||||||||
Gains on sale of containers, net | 6,245 | 3,953 | 27,624 | 12,111 | ||||||||||||||||||||||||||||||
Total revenues | 83,999 | 67,323 | 303,879 | 238,961 | ||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||
Direct container expense | 4,094 | 11,476 | 25,542 | 39,062 | ||||||||||||||||||||||||||||||
Cost of trading containers sold | 1,146 | 4,417 | 9,046 | 9,721 | ||||||||||||||||||||||||||||||
Depreciation expense | 18,050 | 13,507 | 58,972 | 48,473 | ||||||||||||||||||||||||||||||
Amortization expense | 1,756 | 1,601 | 6,544 | 7,080 | ||||||||||||||||||||||||||||||
General and administrative expense | 5,575 | 5,056 | 21,670 | 20,304 | ||||||||||||||||||||||||||||||
Short-term incentive compensation expense | 1,342 | 1,094 | 4,805 | 2,924 | ||||||||||||||||||||||||||||||
Long-term incentive compensation expense | 1,118 | 959 | 5,318 | 3,575 | ||||||||||||||||||||||||||||||
Bad debt expense, net | 399 | 99 | 145 | 3,304 | ||||||||||||||||||||||||||||||
Total operating expenses | 33,480 | 38,209 | 132,042 | 134,443 | ||||||||||||||||||||||||||||||
Income from operations | 50,519 | 29,114 | 171,837 | 104,518 | ||||||||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||||||
Interest expense | (6,658 | ) | (2,851 | ) | (18,151 | ) | (11,750 | ) | ||||||||||||||||||||||||||
Gain on early extinguishment of debt | - | - | - | 19,398 | ||||||||||||||||||||||||||||||
Interest income | 13 | 2 | 27 | 61 | ||||||||||||||||||||||||||||||
Realized losses on interest rate swaps and caps, net | (2,445 | ) | (3,368 | ) | (9,844 | ) | (14,608 | ) | ||||||||||||||||||||||||||
Unrealized gains (losses) on interest rate swaps, net | 5,495 | 3,894 | (4,021 | ) | 11,147 | |||||||||||||||||||||||||||||
Other, net | (762 | ) | (90 | ) | (1,591 | ) | 35 | |||||||||||||||||||||||||||
Net other (expense) income | (4,357 | ) | (2,413 | ) | (33,580 | ) | 4,283 | |||||||||||||||||||||||||||
Income before income tax and noncontrolling interest | 46,162 | 26,701 | 138,257 | 108,801 | ||||||||||||||||||||||||||||||
Income tax (expense) benefit | (1,274 | ) | 1,382 | (4,493 | ) | (3,471 | ) | |||||||||||||||||||||||||||
Net income | 44,888 | 28,083 | 133,764 | 105,330 | ||||||||||||||||||||||||||||||
Less: Net income attributable to the noncontrolling interest | (4,841 | ) | (2,739 | ) | (13,733 | ) | (14,554 | ) | ||||||||||||||||||||||||||
Net income attributable to Textainer Group Holdings | ||||||||||||||||||||||||||||||||||
Limited common shareholders | $ | 40,047 | $ | 25,344 | $ | 120,031 | $ | 90,776 | ||||||||||||||||||||||||||
Net income attributable to Textainer Group Holdings Limited
common shareholders per share: | ||||||||||||||||||||||||||||||||||
Basic | $ | 0.83 | $ | 0.53 | $ | 2.50 | $ | 1.90 | ||||||||||||||||||||||||||
Diluted | $ | 0.81 | $ | 0.52 | $ | 2.43 | $ | 1.88 | ||||||||||||||||||||||||||
Weighted average shares outstanding (in thousands): | ||||||||||||||||||||||||||||||||||
Basic | 48,255 | 47,761 | 48,108 | 47,761 | ||||||||||||||||||||||||||||||
Diluted | 49,532 | 48,431 | 49,307 | 48,185 | ||||||||||||||||||||||||||||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | |||||||||||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||||||||||
Years Ended December 31, 2010 and 2009 | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(All currency expressed in United States dollars in thousands) | |||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||
2010 | 2009 | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net income | $ | 133,764 | $ | 105,330 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||
Depreciation expense | 58,972 | 48,473 | |||||||||||||||||
Bad debt expense, net | 145 | 3,304 | |||||||||||||||||
Unrealized losses (gains) on interest rate swaps, net | 4,021 | (11,147 | ) | ||||||||||||||||
Amortization of debt issuance costs | 4,399 | 2,176 | |||||||||||||||||
Amortization of intangible assets | 6,544 | 7,080 | |||||||||||||||||
Amortization of acquired above-market leases | 26 | 1,456 | |||||||||||||||||
Amortization of deferred revenue | (7,082 | ) | (4,462 | ) | |||||||||||||||
Amortization of unearned income on direct financing and sales-type leases | (7,853 | ) | (8,625 | ) | |||||||||||||||
Gains on sale of containers, net | (27,624 | ) | (12,111 | ) | |||||||||||||||
Gain on early extinguishment of debt | - | (19,398 | ) | ||||||||||||||||
Share-based compensation expense | 5,457 | 3,493 | |||||||||||||||||
Changes in operating assets and liabilities | (6,886 | ) | (1,807 | ) | |||||||||||||||
Total adjustments | 30,119 | 8,432 | |||||||||||||||||
Net cash provided by operating activities | 163,883 | 113,762 | |||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Purchase of containers and fixed assets | (419,650 | ) | (144,274 | ) | |||||||||||||||
Purchase of intangible assets | - | (13,795 | ) | ||||||||||||||||
Proceeds from sale of containers and fixed assets | 75,530 | 58,833 | |||||||||||||||||
Receipt of principal payments on direct financing and sales-type leases | 41,156 | 23,748 | |||||||||||||||||
Net cash used in investing activities | (302,964 | ) | (75,488 | ) | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Proceeds from revolving credit facility | 152,000 | 186,000 | |||||||||||||||||
Principal payments on revolving credit facility | (127,000 | ) | (160,000 | ) | |||||||||||||||
Proceeds from secured debt facility | 327,000 | 196,500 | |||||||||||||||||
Principal payments on secured debt facility | (98,500 | ) | (167,500 | ) | |||||||||||||||
Principal payments on bonds payable | (51,500 | ) | (53,293 | ) | |||||||||||||||
Extinguishment of bonds payable | - | (20,234 | ) | ||||||||||||||||
(Increase) decrease in restricted cash | (8,448 | ) | 9,521 | ||||||||||||||||
Debt issuance costs | (11,670 | ) | (112 | ) | |||||||||||||||
Issuance of common shares upon exercise of share options | 5,033 | - | |||||||||||||||||
Dividends paid | (47,631 | ) | (43,940 | ) | |||||||||||||||
Net cash provided by (used in) financing activities | 139,284 | (53,058 | ) | ||||||||||||||||
Effect of exchange rate changes | 59 | 113 | |||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 262 | (14,671 | ) | ||||||||||||||||
Cash and cash equivalents, beginning of the year | 56,819 | 71,490 | |||||||||||||||||
Cash and cash equivalents, end of year | $ | 57,081 | $ | 56,819 | |||||||||||||||
|
|||||||||||||||||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Reconciliation of GAAP financial measures to non-GAAP financial measures
Three Months and Years Ended
(Unaudited)
(All currency expressed in
(1) The following is a reconciliation of net income attributable to
- 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;
- EBITDA does not reflect interest expense or cash requirements necessary to service interest or principal payments on our debt;
- Although depreciation is a noncash charge, the assets being depreciated may be replaced in the future, and neither EBITDA, net income attributable to
Textainer Group Holdings Limited common shareholders excluding unrealized (gains) losses on interest rate swaps, net or net income attributable toTextainer Group Holdings Limited common shareholders per diluted common share excluding unrealized (gains) losses on interest rate swaps, net 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, | |||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||
Reconciliation of EBITDA: | ||||||||||||||||||||||||
Net income attributable to Textainer Group Holdings Limited common shareholders
|
$ | 40,047 | $ | 25,344 | $ | 120,031 | $ | 90,776 | ||||||||||||||||
Adjustments: | ||||||||||||||||||||||||
Interest income | (13 | ) | (2 | ) | (27 | ) | (61 | ) | ||||||||||||||||
Interest expense | 6,658 | 2,851 | 18,151 | 11,750 | ||||||||||||||||||||
Realized losses on interest rate swaps and caps, net | 2,445 | 3,368 | 9,844 | 14,608 | ||||||||||||||||||||
Unrealized (gains) losses on interest rate swaps, net | (5,495 | ) | (3,894 | ) | 4,021 | (11,147 | ) | |||||||||||||||||
Income tax expense (benefit) | 1,274 | (1,382 | ) | 4,493 | 3,471 | |||||||||||||||||||
Net income attributable to the noncontrolling interest | 4,841 | 2,739 | 13,733 | 14,554 | ||||||||||||||||||||
Depreciation expense | 18,050 | 13,507 | 58,972 | 48,473 | ||||||||||||||||||||
Amortization expense | 1,756 | 1,601 | 6,544 | 7,080 | ||||||||||||||||||||
Impact of reconciling items on net income attributable to the noncontrolling interest |
(4,263 | ) | (2,462 | ) | (16,767 | ) | (10,823 | ) | ||||||||||||||||
EBITDA | $ | 65,300 | $ | 41,670 | $ | 218,995 | $ | 168,681 | ||||||||||||||||
Net cash provided by operating activities | $ | 163,883 | $ | 113,762 | ||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||
Bad debt expense, net | (145 | ) | (3,304 | ) | ||||||||||||||||||||
Amortization of debt issuance costs | (4,399 | ) | (2,176 | ) | ||||||||||||||||||||
Amortization of acquired above-market leases | (26 | ) | (1,456 | ) | ||||||||||||||||||||
Amortization of deferred revenue | 7,082 | 4,462 | ||||||||||||||||||||||
Amortization of unearned income on direct financing and sales-type leases | 7,853 | 8,625 | ||||||||||||||||||||||
Gains on sale of containers, net | 27,624 | 12,111 | ||||||||||||||||||||||
Gain on early extinguishment of debt | - | 19,398 | ||||||||||||||||||||||
Share-based compensation expense | (5,457 | ) | (3,493 | ) | ||||||||||||||||||||
Interest expense | 18,151 | 11,750 | ||||||||||||||||||||||
Interest income | (27 | ) | (61 | ) | ||||||||||||||||||||
Realized losses on interest rate swaps and caps, net | 9,844 | 14,608 | ||||||||||||||||||||||
Income tax expense | 4,493 | 3,471 | ||||||||||||||||||||||
Changes in operating assets and liabilities | 6,886 | 1,807 | ||||||||||||||||||||||
Impact of reconciling items on net income attributable to the noncontrolling interest |
(16,767 | ) | (10,823 | ) | ||||||||||||||||||||
EBITDA | $ | 218,995 | $ | 168,681 | ||||||||||||||||||||
Three Months Ended |
Years Ended | |||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||
Reconciliation of net income attributable to Textainer Group Holdings Limited common shareholders excluding unrealized (gains) losses on interest rate swaps, net: |
||||||||||||||||||||||
Net income attributable to Textainer Group Holdings Limited common shareholders |
$ | 40,047 | $ | 25,344 | $ | 120,031 | $ | 90,776 | ||||||||||||||
Adjustments: | ||||||||||||||||||||||
Unrealized (gains) losses on interest rate swaps, net | (5,495 | ) | (3,894 | ) | 4,021 | (11,147 | ) | |||||||||||||||
Impact of reconciling item on net income attributable to noncontrolling interest |
1,149 | 685 | (601 | ) | 1,952 | |||||||||||||||||
Net income attributable to Textainer Group Holdings Limited common
shareholders excluding unrealized (gains) losses on interest rate swaps, net |
$ | 35,701 | $ | 22,135 | $ | 123,451 | $ | 81,581 | ||||||||||||||
Reconciliation of net income attributable to Textainer Group Holdings
Limited common shareholders per diluted common share excluding unrealized (gains) losses on interest rate swaps, net: |
||||||||||||||||||||||
Net income attributable to Textainer Group Holdings
Limited common shareholders per diluted common share |
$ | 0.81 | $ | 0.52 | 2.43 | $ | 1.88 | |||||||||||||||
Adjustments: | ||||||||||||||||||||||
Unrealized (gains) losses on interest rate swaps, net | (0.11 | ) | (0.08 | ) | 0.08 | (0.23 | ) | |||||||||||||||
Impact of reconciling item on net income attributable to noncontrolling
interest |
0.02 | 0.02 | (0.01 | ) | 0.04 | |||||||||||||||||
Net income attributable to Textainer Group Holdings Limited common
shareholders per diluted common share excluding unrealized (gains) losses on interest rate swaps, net |
$ | 0.72 | $ | 0.46 | $ | 2.50 | $ | 1.69 | ||||||||||||||
Mr.
Investor Relations Director
ir@textainer.com
Source:
News Provided by Acquire Media