tgh-6k_20200813.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

August 13, 2020

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

 

 

 

 


This report contains a copy of the press release entitled “Textainer Group Holdings Limited Reports Second-Quarter 2020 Results,” dated August 13, 2020.

Exhibit

1.

Press Release dated August 13, 2020


Textainer Group Holdings Limited

Reports Second-Quarter 2020 Results

HAMILTON, Bermuda – (PRNewswire) – August 13, 2020 –Textainer Group Holdings Limited (NYSE: TGH; JSE: TXT) (“Textainer”, “the Company”, “we” and “our”), one of the world’s largest lessors of intermodal containers, today reported financial results for the second-quarter ended June 30, 2020.

 

Key Financial Information (in thousands except for per share and TEU amounts) and Business Highlights:

 

 

 

QTD

 

 

 

Q2 2020

 

 

Q1 2020

 

 

Q2 2019

 

Lease rental income

 

$

144,774

 

 

$

145,478

 

 

$

156,243

 

Gain on sale of owned fleet containers, net

 

$

5,640

 

 

$

5,794

 

 

$

5,404

 

Income from operations

 

$

49,265

 

 

$

46,409

 

 

$

45,918

 

Net income (loss) attributable to Textainer Group Holdings

   Limited common shareholders

 

$

15,989

 

 

$

(4,379

)

 

$

314

 

Net income (loss) attributable to Textainer Group Holdings

   Limited common shareholders per diluted common share

 

$

0.30

 

 

$

(0.08

)

 

$

0.01

 

Adjusted net income (1)

 

$

14,794

 

 

$

9,702

 

 

$

9,006

 

Adjusted net income per diluted common share (1)

 

$

0.28

 

 

$

0.17

 

 

$

0.16

 

Adjusted EBITDA (1) (4)

 

$

109,977

 

 

$

110,439

 

 

$

114,745

 

Average fleet utilization (2)

 

 

95.4

%

 

 

96.2

%

 

 

97.9

%

Total fleet size at end of period (TEU) (3)

 

 

3,458,080

 

 

 

3,450,680

 

 

 

3,601,681

 

Owned percentage of total fleet at end of period

 

 

86.1

%

 

 

85.6

%

 

 

80.9

%

 

 

 

(1)

Refer to the “Use of Non-GAAP Financial Information” set forth below.

 

 

(2)

Utilization is computed by dividing total units on lease in CEUs (cost equivalent unit) by the total units in our fleet in CEUs, excluding CEUs that have been designated as held for sale units and manufactured for us but have not yet been delivered to a lessee. CEU is a unit of measurement based on the approximate cost of a container relative to the cost of a standard 20-foot dry container. These factors may differ slightly from CEU ratios used by others in the industry.

 

 

(3)

TEU refers to a twenty-foot equivalent unit, which is a unit of measurement used in the container shipping industry to compare shipping containers of various lengths to a standard 20-foot container, thus a 20-foot container is one TEU and a 40-foot container is two TEU.

 

 

(4)

Adjusted EBITDA for the first quarter 2020 has been restated to reflect an immaterial adjustment (see Reconciliation of Adjusted EBITDA).

 

 

Net income of $16.0 million for the second quarter or $0.30 per diluted common share;

 

Adjusted net income of $14.8 million for the second quarter, or $0.28 per diluted common share, as compared to $9.7 million, or $0.17 per diluted common share in the first quarter of 2020;

 

Adjusted EBITDA of $110.0 million for the second quarter, as compared to $110.4 million in the first quarter of 2020;

 

Utilization averaged 95.4% for the second quarter, as compared to 96.2% for the first quarter of 2020;

 

Container investments of approximately $190 million delivered through the first six months of the year; and

 

Repurchased 1,633,794 shares of common stock at an average price of $8.33 per share during the second quarter under the share repurchase program.



 

“We are pleased with our performance in the second quarter, which proved resilient in spite of the global economic downturn. For the quarter, we delivered stable lease rental income of $144.8 million and adjusted EBITDA of $110.0 million, while improving our adjusted net income to $14.8 million,” stated Olivier Ghesquiere, President and Chief Executive Officer of Textainer Group Holdings Limited.

 

Ghesquiere continued, “Though the second quarter saw a worsening in global trade, our container fleet of mostly long-term leases continued to perform strongly, with only a slight decrease in utilization. We were very pleased with the general improvement in our cash collections and have experienced no notable credit issues. The elevated credit risk of our customers, which had been a point of attention due to the COVID crisis, has mostly subsided, driven by their better than expected financial performance, access to government support, and a significant decrease in fuel cost.

 

“As we begin the third quarter, we have seen a significant uptake in demand for containers. This change in market dynamics is driven by the cyclical increase in trade over the summer season in North America and Europe and is compounded by the restocking of inventories following the easing of quarantine measures in most developed economies. COVID-related disruptions to supply-chains have also caused a dislocation of containers for shipping lines, which is currently favorable to container lessors. As we look ahead to our performance for the second half of the year, we are encouraged by this recent rebound in activity which should lead to an increase in our utilization rate and lease rental revenue. We also expect our customers to continue to improve their financial performance and strengthen their balance sheets driven by the increased trade activity and higher freight rates.

 

“The pandemic continues to create uncertainty and market challenges, but we remain cautiously optimistic with our outlook for the balance of the year. Textainer remains well-positioned to participate in the rebound in market activity with a strong balance sheet, healthy liquidity, an optimized capital structure, and demonstrated expense control and efficiency,” concluded Ghesquiere.

 

Second-Quarter Results

Lease rental income decreased $0.7 million from the first quarter of 2020, due primarily to a slight reduction in utilization.

Direct container expense increased $2.0 million from the first quarter of 2020, mostly due to the higher storage costs and handling expense resulting from slightly lower utilization.

Depreciation expense decreased $3.0 million from the first quarter of 2020, due primarily to improved mark to market value adjustments on certain containers held for sale.

Container lessee default recovery was $1.7 million in the second quarter of 2020, resulting from cash payments received in full on a settlement agreement with a small insolvent customer that had previously defaulted and was written-off in 2018.

Bad debt recovery was $0.3 million in the second quarter of 2020, resulting from a reduction in reserves due to improved collections, compared to an expense of $2.0 million in the first quarter of 2020.

Interest expense decreased $6.1 million compared to the first quarter of 2020. Realized loss on derivative instruments, net, increased $1.7 million compared to the first quarter of 2020. The combined expense reduction of $4.4 million was driven by a decrease in interest rates and a decrease in average outstanding debt.

Unrealized gain (loss) on derivative instruments, net, was a gain of $1.3 million for the quarter versus a loss of $14.9 million for the first quarter of 2020, resulting from an increase and a decrease, respectively, in the forward LIBOR curve at the end of the respective period ends, which increased the fair value of the current interest rate derivatives as of the end of the second quarter. Textainer uses interest rate derivatives to manage interest rate risk and intends to hold these derivatives until maturity. Changes in the fair value of derivatives result in non-cash adjustments to their carrying value that get recorded through net income for the portion of our derivatives not designated under hedge accounting at their inception.

 



Conference Call and Webcast

A conference call to discuss the financial results for the second quarter 2020 will be held at 5:00 pm Eastern Time on Thursday, August 13, 2020. The dial-in number for the conference call is 1-877-407-9039 (U.S. & Canada) and 1-201-689-8470 (International). The call and archived replay may also be accessed via webcast on Textainer’s Investor Relations website at http://investor.textainer.com.

 

About Textainer Group Holdings Limited

Textainer has operated since 1979 and is one of the world’s largest lessors of intermodal containers with approximately 3.5 million TEU in our owned and managed fleet. We lease containers to approximately 250 customers, including all of the world’s leading international shipping lines, and other lessees. Our fleet consists of standard dry freight, refrigerated intermodal containers, and dry freight specials. We also lease tank containers through our relationship with Trifleet Leasing and are a supplier of containers to the U.S. Military. Textainer is one of the largest and most reliable suppliers of new and used containers. In addition to selling older containers from our fleet, we buy older containers from our shipping line customers for trading and resale. We sold an average of approximately 140,000 containers per year for the last five years to more than 1,500 customers making us one of the largest sellers of used containers. Textainer operates via a network of 14 offices and approximately 500 independent depots worldwide. Textainer has a primary listing on the New York Stock Exchange (NYSE: TGH) and a secondary listing on the Johannesburg Stock Exchange (JSE: TXT). Visit www.textainer.com for additional information about Textainer.

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 may relate to, but are not limited to, expectations or estimates of future operating results or financial performance, capital expenditures, introduction of new products, 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. 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: Credit risk of our customers has mostly subsided and we expect them to continue to improve their financial performance and strengthen their balance sheets; The recent rebound in trade should lead to an increase in our utilization rate and lease rental revenue; Textainer is well positioned to navigate through the current crisis and participate in an eventual recovery; and other risks and uncertainties, including those set forth in Textainer’s filings with the Securities and Exchange Commission. For a discussion of some of these risks and uncertainties, see Item 3 “Key Information— Risk Factors” in Textainer’s Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 30, 2020.

Textainer’s views, estimates, plans and outlook as described within this document may change subsequent to the release of this press release. Textainer is under no obligation to modify or update any or all of the statements it has made herein despite any subsequent changes Textainer may make in its views, estimates, plans or outlook for the future.

 

Textainer Group Holdings Limited

Investor Relations

Phone: +1 (415) 658-8333

ir@textainer.com

###


TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Loss)

Three and Six Months Ended June 30, 2020 and 2019

(Unaudited)

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

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease rental income - owned fleet

 

 

 

 

 

$

128,648

 

 

 

 

 

 

$

130,439

 

 

 

 

 

 

$

258,720

 

 

 

 

 

 

$

260,000

 

Lease rental income - managed fleet

 

 

 

 

 

 

16,126

 

 

 

 

 

 

 

25,804

 

 

 

 

 

 

 

31,532

 

 

 

 

 

 

 

52,357

 

Lease rental income

 

 

 

 

 

 

144,774

 

 

 

 

 

 

 

156,243

 

 

 

 

 

 

 

290,252

 

 

 

 

 

 

 

312,357

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management fees - non-leasing

 

 

 

 

 

 

544

 

 

 

 

 

 

 

1,940

 

 

 

 

 

 

 

2,028

 

 

 

 

 

 

 

4,241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading container sales proceeds

 

 

 

 

 

 

7,427

 

 

 

 

 

 

 

14,394

 

 

 

 

 

 

 

17,012

 

 

 

 

 

 

 

27,106

 

Cost of trading containers sold

 

 

 

 

 

 

(6,856

)

 

 

 

 

 

 

(12,170

)

 

 

 

 

 

 

(15,792

)

 

 

 

 

 

 

(22,902

)

Trading container margin

 

 

 

 

 

 

571

 

 

 

 

 

 

 

2,224

 

 

 

 

 

 

 

1,220

 

 

 

 

 

 

 

4,204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of owned fleet containers, net

 

 

 

 

 

 

5,640

 

 

 

 

 

 

 

5,404

 

 

 

 

 

 

 

11,434

 

 

 

 

 

 

 

12,171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct container expense - owned fleet (a)

 

 

 

 

 

 

15,248

 

 

 

 

 

 

 

10,681

 

 

 

 

 

 

 

28,512

 

 

 

 

 

 

 

22,261

 

Distribution expense to managed fleet container investors

 

 

 

 

 

 

14,692

 

 

 

 

 

 

 

23,737

 

 

 

 

 

 

 

28,855

 

 

 

 

 

 

 

48,217

 

Depreciation expense (b)

 

 

 

 

 

 

63,848

 

 

 

 

 

 

 

64,135

 

 

 

 

 

 

 

130,682

 

 

 

 

 

 

 

126,599

 

Amortization expense

 

 

 

 

 

 

557

 

 

 

 

 

 

 

493

 

 

 

 

 

 

 

1,121

 

 

 

 

 

 

 

1,095

 

General and administrative expense

 

 

 

 

 

 

9,866

 

 

 

 

 

 

 

9,444

 

 

 

 

 

 

 

20,004

 

 

 

 

 

 

 

19,274

 

Bad debt (recovery) expense, net

 

 

 

 

 

 

(276

)

 

 

 

 

 

 

3,689

 

 

 

 

 

 

 

1,769

 

 

 

 

 

 

 

3,848

 

Container lessee default (recovery) expense, net (a) (b)

 

 

 

 

 

 

(1,671

)

 

 

 

 

 

 

8,555

 

 

 

 

 

 

 

(1,683

)

 

 

 

 

 

 

7,902

 

Gain on insurance recovery and legal settlement

 

 

 

 

 

 

 

 

 

 

 

 

 

(841

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(841

)

Total operating expenses

 

 

 

 

 

 

102,264

 

 

 

 

 

 

 

119,893

 

 

 

 

 

 

 

209,260

 

 

 

 

 

 

 

228,355

 

Income from operations

 

 

 

 

 

 

49,265

 

 

 

 

 

 

 

45,918

 

 

 

 

 

 

 

95,674

 

 

 

 

 

 

 

104,618

 

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

(30,022

)

 

 

 

 

 

 

(38,213

)

 

 

 

 

 

 

(66,134

)

 

 

 

 

 

 

(75,729

)

Write-off of unamortized deferred debt issuance costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(122

)

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

56

 

 

 

 

 

 

 

729

 

 

 

 

 

 

 

456

 

 

 

 

 

 

 

1,367

 

Realized (loss) gain on derivative instruments, net

 

 

 

 

 

 

(3,267

)

 

 

 

 

 

 

1,095

 

 

 

 

 

 

 

(4,793

)

 

 

 

 

 

 

2,539

 

Unrealized gain (loss) on derivative instruments, net

 

 

 

 

 

 

1,342

 

 

 

 

 

 

 

(10,099

)

 

 

 

 

 

 

(13,595

)

 

 

 

 

 

 

(15,837

)

Other, net

 

 

 

 

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(56

)

 

 

 

 

 

 

 

Net other expense

 

 

 

 

 

 

(31,894

)

 

 

 

 

 

 

(46,488

)

 

 

 

 

 

 

(84,244

)

 

 

 

 

 

 

(87,660

)

Income (loss) before income tax and

    noncontrolling interest

 

 

 

 

 

 

17,371

 

 

 

 

 

 

 

(570

)

 

 

 

 

 

 

11,430

 

 

 

 

 

 

 

16,958

 

Income tax (expense) benefit

 

 

 

 

 

 

(1,074

)

 

 

 

 

 

 

221

 

 

 

 

 

 

 

(241

)

 

 

 

 

 

 

(152

)

Net income (loss)

 

 

 

 

 

 

16,297

 

 

 

 

 

 

 

(349

)

 

 

 

 

 

 

11,189

 

 

 

 

 

 

 

16,806

 

Less: Net (income) loss attributable to the noncontrolling

   interest

 

 

(308

)

 

 

 

 

 

 

663

 

 

 

 

 

 

 

421

 

 

 

 

 

 

 

558

 

 

 

 

 

Net income attributable to Textainer Group

   Holdings Limited common shareholders

 

$

15,989

 

 

 

 

 

 

$

314

 

 

 

 

 

 

$

11,610

 

 

 

 

 

 

$

17,364

 

 

 

 

 

Net income attributable to Textainer Group Holdings

   Limited common shareholders per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.30

 

 

 

 

 

 

$

0.01

 

 

 

 

 

 

$

0.21

 

 

 

 

 

 

$

0.30

 

 

 

 

 

Diluted

 

$

0.30

 

 

 

 

 

 

$

0.01

 

 

 

 

 

 

$

0.21

 

 

 

 

 

 

$

0.30

 

 

 

 

 

Weighted average shares outstanding (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

53,715

 

 

 

 

 

 

 

57,500

 

 

 

 

 

 

 

55,084

 

 

 

 

 

 

 

57,488

 

 

 

 

 

Diluted

 

 

53,776

 

 

 

 

 

 

 

57,576

 

 

 

 

 

 

 

55,148

 

 

 

 

 

 

 

57,578

 

 

 

 

 

Other comprehensive income (loss), before tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in derivative instruments designated as cash flow hedges

 

 

 

 

 

 

(4,393

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,251

)

 

 

 

 

 

 

 

Reclassification of realized loss on derivative instruments designated

    as cash flow hedges

 

 

 

 

 

 

590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

528

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

 

 

 

 

(39

)

 

 

 

 

 

 

(40

)

 

 

 

 

 

 

(102

)

 

 

 

 

 

 

67

 

Comprehensive income (loss), before tax

 

 

 

 

 

 

12,455

 

 

 

 

 

 

 

(389

)

 

 

 

 

 

 

(1,636

)

 

 

 

 

 

 

16,873

 

Income tax benefit related to items of other comprehensive income (loss)

 

 

 

 

 

 

39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

132

 

 

 

 

 

 

 

 

Comprehensive income (loss), after tax

 

 

 

 

 

 

12,494

 

 

 

 

 

 

 

(389

)

 

 

 

 

 

 

(1,504

)

 

 

 

 

 

 

16,873

 

Comprehensive (income) loss attributable to the

   noncontrolling interest

 

 

 

 

 

 

(308

)

 

 

 

 

 

 

663

 

 

 

 

 

 

 

421

 

 

 

 

 

 

 

558

 

Comprehensive income (loss) attributable to Textainer

   Group Holdings Limited common shareholders

 

 

 

 

 

$

12,186

 

 

 

 

 

 

$

274

 

 

 

 

 

 

$

(1,083

)

 

 

 

 

 

$

17,431

 

 

 

(a) Amounts for container write-off and recovery and container recovery costs from lessee default for the periods ended June 30, 2019 have been reclassified out of the previously reported line item “container impairment” and “direct container expense – owned fleet”, respectively, and included within “container lessee default recovery, net” to conform with the 2020 presentation.  

 

(b) Amounts to write-down the carrying value of containers held for sale to their estimated fair value less costs to sell for the periods ended June 30, 2019 have been reclassified out of the previously reported line item “container impairment” and included within “depreciation expense” to conform with the 2020 presentation.  


TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

June 30, 2020 and December 31, 2019

(Unaudited)

(All currency expressed in United States dollars in thousands)

 

 

 

2020

 

 

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

189,848

 

 

$

180,552

 

Accounts receivable, net of allowance for doubtful accounts of $7,009 and $6,299, respectively

 

 

106,761

 

 

 

109,384

 

Net investment in finance leases, net of allowance for credit losses of $199 and $0, respectively

 

 

38,112

 

 

 

40,940

 

Container leaseback financing receivable, net of allowance for credit losses of $117 and $0, respectively

 

 

21,412

 

 

 

20,547

 

Trading containers

 

 

9,140

 

 

 

11,330

 

Containers held for sale

 

 

50,422

 

 

 

41,884

 

Prepaid expenses and other current assets

 

 

12,068

 

 

 

14,816

 

Due from affiliates, net

 

 

2,270

 

 

 

1,880

 

Total current assets

 

 

430,033

 

 

 

421,333

 

Restricted cash

 

 

91,129

 

 

 

97,353

 

Containers, net of accumulated depreciation of $1,522,009 and $1,443,167, respectively

 

 

4,054,337

 

 

 

4,156,151

 

Net investment in finance leases, net of allowance for credit losses of $983 and $0, respectively

 

 

318,398

 

 

 

254,363

 

Container leaseback financing receivable, net of allowance for credit losses of $445 and $0, respectively

 

 

249,384

 

 

 

251,111

 

Fixed assets, net of accumulated depreciation of $12,490 and $12,266, respectively

 

 

943

 

 

 

1,128

 

Intangible assets, net of accumulated amortization of $46,480 and $45,359, respectively

 

 

4,170

 

 

 

5,291

 

Derivative instruments

 

 

-

 

 

 

135

 

Deferred taxes

 

 

1,383

 

 

 

1,388

 

Other assets

 

 

13,435

 

 

 

14,364

 

Total assets

 

$

5,163,212

 

 

$

5,202,617

 

Liabilities and Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

25,466

 

 

$

23,404

 

Container contracts payable

 

 

136,937

 

 

 

9,394

 

Other liabilities

 

 

2,325

 

 

 

2,636

 

Due to container investors, net

 

 

19,458

 

 

 

21,978

 

Debt, net of unamortized deferred financing costs of $6,186 and $8,120, respectively

 

 

241,519

 

 

 

242,433

 

Total current liabilities

 

 

425,705

 

 

 

299,845

 

Debt, net of unamortized deferred financing costs of $19,240 and $21,446, respectively

 

 

3,406,474

 

 

 

3,555,296

 

Derivative instruments

 

 

39,961

 

 

 

13,778

 

Income tax payable

 

 

9,976

 

 

 

9,909

 

Deferred taxes

 

 

7,683

 

 

 

7,789

 

Other liabilities

 

 

17,101

 

 

 

30,355

 

Total liabilities

 

 

3,906,900

 

 

 

3,916,972

 

Equity:

 

 

 

 

 

 

 

 

Textainer Group Holdings Limited shareholders' equity:

 

 

 

 

 

 

 

 

Common shares, $0.01 par value. Authorized 140,000,000 shares; 58,389,184 shares issued and

  53,299,310 shares outstanding at 2020; 58,326,555 shares issued and 56,817,918 shares

  outstanding at 2019

 

 

584

 

 

 

583

 

Treasury shares, at cost, 5,089,874 shares and 1,508,637 shares, respectively

 

 

(46,828

)

 

 

(17,746

)

Additional paid-in capital

 

 

412,739

 

 

 

410,595

 

Accumulated other comprehensive loss

 

 

(13,204

)

 

 

(511

)

Retained earnings

 

 

877,183

 

 

 

866,458

 

Total Textainer Group Holdings Limited shareholders’ equity

 

 

1,230,474

 

 

 

1,259,379

 

Noncontrolling interest

 

 

25,838

 

 

 

26,266

 

Total equity

 

 

1,256,312

 

 

 

1,285,645

 

Total liabilities and equity

 

$

5,163,212

 

 

$

5,202,617

 

 

 

 

 

 

 

 

 

 

 

 

 


TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

Six Months Ended June 30, 2020 and 2019

(Unaudited)

(All currency expressed in United States dollars in thousands)

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

11,189

 

 

$

16,806

 

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

 

 

 

 

 

 

 

 

Depreciation expense

 

 

130,682

 

 

 

126,599

 

Bad debt expense, net

 

 

1,769

 

 

 

3,848

 

Container (recovery) write-off from lessee default, net

 

 

(1,558

)

 

 

7,730

 

Unrealized loss on derivative instruments, net

 

 

13,595

 

 

 

15,837

 

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

    accretion of bond discounts

 

 

4,210

 

 

 

3,875

 

Amortization of intangible assets

 

 

1,121

 

 

 

1,095

 

Gain on sale of owned fleet containers, net

 

 

(11,434

)

 

 

(12,171

)

Gain on insurance recovery and legal settlement

 

 

 

 

 

(841

)

Share-based compensation expense

 

 

2,145

 

 

 

2,115

 

Changes in operating assets and liabilities

 

 

36,501

 

 

 

47,130

 

Total adjustments

 

 

177,031

 

 

 

195,217

 

Net cash provided by operating activities

 

 

188,220

 

 

 

212,023

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of containers and fixed assets

 

 

(52,660

)