Key Financial Information (in thousands except for per share and TEU amounts) and Business Highlights: |
||||||||||||||||||||
QTD |
Full-Year |
|||||||||||||||||||
Q4 2021 |
Q3 2021 |
Q4 2020 |
2021 |
2020 |
||||||||||||||||
Lease rental income |
$ |
198,222 |
$ |
195,830 |
$ |
161,491 |
$ |
750,730 |
$ |
600,873 |
||||||||||
Gain on sale of owned fleet containers, net |
$ |
16,007 |
$ |
20,028 |
$ |
7,820 |
$ |
67,229 |
$ |
27,230 |
||||||||||
Income from operations |
$ |
113,986 |
$ |
114,037 |
$ |
71,816 |
$ |
430,131 |
$ |
221,599 |
||||||||||
Net income attributable to common shareholders |
$ |
72,885 |
$ |
64,729 |
$ |
44,260 |
$ |
273,459 |
$ |
72,822 |
||||||||||
Net income attributable to common shareholders per diluted common share |
$ |
1.45 |
$ |
1.28 |
$ |
0.87 |
$ |
5.41 |
$ |
1.36 |
||||||||||
Adjusted net income (1) |
$ |
73,229 |
$ |
76,502 |
$ |
41,147 |
$ |
284,087 |
$ |
87,277 |
||||||||||
Adjusted net income per diluted common share (1) |
$ |
1.46 |
$ |
1.52 |
$ |
0.81 |
$ |
5.62 |
$ |
1.63 |
||||||||||
Adjusted EBITDA (1) |
$ |
182,150 |
$ |
184,240 |
$ |
136,834 |
$ |
697,948 |
$ |
476,210 |
||||||||||
Average fleet utilization (2) |
99.7 |
% |
99.8 |
% |
98.5 |
% |
99.8 |
% |
96.6 |
% |
||||||||||
Total fleet size at end of period (TEU) (3) |
4,322,367 |
4,264,946 |
3,774,053 |
4,322,367 |
3,774,053 |
|||||||||||||||
Owned percentage of total fleet at end of period |
92.8 |
% |
92.6 |
% |
88.0 |
% |
92.8 |
% |
88.0 |
% |
(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 and units manufactured for us but not yet 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 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. |
- Net income of
$273.5 million for the full year, or$5.41 per diluted common share and$72.9 million for the fourth quarter of 2021, or$1.45 per diluted common share; - Adjusted net income of
$284.1 million for the full year, or$5.62 per diluted common share, as compared to$87.3 million , or$1.63 per diluted common share in the prior year. Adjusted net income of$73.2 million for the fourth quarter of 2021, or$1.46 per diluted common share, as compared to$76.5 million , or$1.52 per diluted common share in the third quarter of 2021; - Adjusted EBITDA of
$697.9 million for the full year, as compared to$476.2 million in the prior year. Adjusted EBITDA of$182.2 million for the fourth quarter of 2021, as compared to$184.2 million in the third quarter of 2021; - Average and ending utilization rate for the fourth quarter of 99.7%;
- Invested
$251 million in containers delivered during the fourth quarter, for a total$2.0 billion delivered through the full year, virtually all of which are currently on lease with tenors in excess of 12 years; - Repurchased 741,163 shares and 2,426,725 shares of common stock at an average price of
$35.60 per share and$29.70 per share during the fourth quarter and full year of 2021, respectively. As of the end of the year, the remaining authority under the share repurchase program totaled$51.1 million ; Textainer's board of directors approved and declared a quarterly preferred cash dividend on its 7.00% Series A and its 6.25% Series B cumulative redeemable perpetual preference shares, payable onMarch 15, 2022 , to holders of record as ofMarch 4, 2022 ; andTextainer's board of directors approved and declared a$0.25 per common share cash dividend in the fourth quarter of 2021, payable onMarch 15, 2022 to holders of record as ofMarch 4, 2022 .
"We are very pleased to report another quarter of strong performance, which provided a fantastic finish to a tremendous year. For the full year 2021, lease rental income increased 25% to
For the fourth quarter of 2021, we achieved lease rental income of
"We deployed
"Lease terms remain attractive, with favorable rates and lease tenors continuing to exceed 12 years on average for new containers. It is important to emphasize that with all future capex opportunities, we remain focused on yields and profitability and will only invest when our targets can be achieved on the basis of mostly confirmed lease opportunities. We also continue to successfully extend expiring leases into life-cycle-leases, with maturities extending through the remaining useful life of the containers."
"In summary, 2021 was a tremendous year for
Fourth-Quarter and Full-Year Results
Lease rental income for the year increased
Trading container margin for the year increased
Gain on sale of owned fleet containers, net for the year increased
Direct container expense – owned fleet for the year decreased
Distribution to managed fleet container investors for the year decreased
Depreciation expense for the year increased
General and administrative expense for the year increased
Interest expense for the year increased
Debt termination expense for 2021 amounted to
Realized loss on financial instruments, net for the year decreased
Conference Call and Webcast
A conference call to discuss the financial results for the fourth quarter and full year of 2021 will be held at
About
Important Cautionary Information Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Investor Relations
Phone: +1 (415) 658-8333
ir@textainer.com
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
(Unaudited) |
||||||||||||||||
(All currency expressed in |
||||||||||||||||
Three Months Ended |
Years Ended |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Revenues: |
||||||||||||||||
Lease rental income - owned fleet |
$ |
185,167 |
$ |
146,118 |
$ |
694,693 |
$ |
538,425 |
||||||||
Lease rental income - managed fleet |
13,055 |
15,373 |
56,037 |
62,448 |
||||||||||||
Lease rental income |
198,222 |
161,491 |
750,730 |
600,873 |
||||||||||||
Management fees - non-leasing |
614 |
1,547 |
3,360 |
5,271 |
||||||||||||
Trading container sales proceeds |
9,397 |
7,274 |
32,045 |
31,941 |
||||||||||||
Cost of trading containers sold |
(7,673) |
(5,896) |
(21,285) |
(28,409) |
||||||||||||
Trading container margin |
1,724 |
1,378 |
10,760 |
3,532 |
||||||||||||
Gain on sale of owned fleet containers, net |
16,007 |
7,820 |
67,229 |
27,230 |
||||||||||||
Operating expenses: |
||||||||||||||||
Direct container expense - owned fleet |
5,590 |
10,315 |
23,384 |
55,222 |
||||||||||||
Distribution expense to managed fleet container investors |
11,590 |
14,092 |
50,360 |
57,311 |
||||||||||||
Depreciation expense |
72,915 |
65,609 |
281,575 |
261,665 |
||||||||||||
Amortization expense |
250 |
806 |
2,540 |
2,572 |
||||||||||||
General and administrative expense |
12,199 |
11,008 |
46,462 |
41,880 |
||||||||||||
Bad debt recovery, net |
(60) |
(1,342) |
(1,285) |
(1,668) |
||||||||||||
Container lessee default expense (recovery), net |
97 |
(68) |
(1,088) |
(1,675) |
||||||||||||
Total operating expenses |
102,581 |
100,420 |
401,948 |
415,307 |
||||||||||||
Income from operations |
113,986 |
71,816 |
430,131 |
221,599 |
||||||||||||
Other (expense) income: |
||||||||||||||||
Interest expense |
(34,888) |
(27,973) |
(127,269) |
(123,230) |
||||||||||||
Debt termination expense |
(131) |
— |
(15,209) |
(8,750) |
||||||||||||
Interest income |
40 |
52 |
123 |
531 |
||||||||||||
Realized loss on financial instruments, net |
(118) |
(3,395) |
(5,634) |
(12,295) |
||||||||||||
Unrealized (loss) gain on financial instruments, net |
(272) |
3,390 |
4,409 |
(6,044) |
||||||||||||
Other, net |
120 |
685 |
(490) |
1,488 |
||||||||||||
Net other expense |
(35,249) |
(27,241) |
(144,070) |
(148,300) |
||||||||||||
Income before income taxes |
78,737 |
44,575 |
286,061 |
73,299 |
||||||||||||
Income tax (expense) benefit |
(883) |
463 |
(1,773) |
374 |
||||||||||||
Net income |
77,854 |
45,038 |
284,288 |
73,673 |
||||||||||||
Less: Dividends on preferred shares |
4,969 |
— |
10,829 |
— |
||||||||||||
Less: Net income attributable to the noncontrolling interest |
— |
778 |
— |
851 |
||||||||||||
Net income attributable to common shareholders |
$ |
72,885 |
$ |
44,260 |
$ |
273,459 |
$ |
72,822 |
||||||||
Net income attributable to common shareholders per share: |
||||||||||||||||
Basic |
$ |
1.48 |
$ |
0.88 |
$ |
5.51 |
$ |
1.37 |
||||||||
Diluted |
$ |
1.45 |
$ |
0.87 |
$ |
5.41 |
$ |
1.36 |
||||||||
Weighted average shares outstanding (in thousands): |
||||||||||||||||
Basic |
49,093 |
50,517 |
49,624 |
53,271 |
||||||||||||
Diluted |
50,097 |
51,110 |
50,576 |
53,481 |
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||
Consolidated Balance Sheets |
||||||||
(Unaudited) |
||||||||
(All currency expressed in |
||||||||
|
|
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
206,210 |
$ |
131,018 |
||||
Accounts receivable, net of allowance of |
125,746 |
108,578 |
||||||
Net investment in finance leases, net of allowance of |
113,048 |
78,459 |
||||||
Container leaseback financing receivable, net of allowance of |
30,317 |
27,076 |
||||||
Trading containers |
12,740 |
9,375 |
||||||
Containers held for sale |
7,007 |
15,629 |
||||||
Prepaid expenses and other current assets |
14,184 |
13,713 |
||||||
Due from affiliates, net |
2,376 |
1,509 |
||||||
Total current assets |
511,628 |
385,357 |
||||||
Restricted cash |
76,362 |
74,147 |
||||||
Marketable securities |
2,866 |
— |
||||||
Containers, net of accumulated depreciation of |
4,731,878 |
4,125,052 |
||||||
Net investment in finance leases, net of allowance of |
1,693,042 |
801,501 |
||||||
Container leaseback financing receivable, net of allowance of |
323,830 |
336,792 |
||||||
Derivative instruments |
12,278 |
47 |
||||||
Deferred taxes |
1,073 |
1,153 |
||||||
Other assets |
14,487 |
17,327 |
||||||
Total assets |
$ |
7,367,444 |
$ |
5,741,376 |
||||
Liabilities and Equity |
||||||||
Current liabilities: |
||||||||
Accounts payable and accrued expenses |
$ |
22,111 |
$ |
24,385 |
||||
Container contracts payable |
140,968 |
231,647 |
||||||
Other liabilities |
4,895 |
2,288 |
||||||
Due to container investors, net |
17,985 |
18,697 |
||||||
Debt, net of unamortized costs of |
380,207 |
408,365 |
||||||
Total current liabilities |
566,166 |
685,382 |
||||||
Debt, net of unamortized costs of |
4,960,313 |
3,706,979 |
||||||
Derivative instruments |
2,139 |
29,235 |
||||||
Income tax payable |
10,747 |
10,047 |
||||||
Deferred taxes |
7,589 |
6,491 |
||||||
Other liabilities |
39,236 |
16,524 |
||||||
Total liabilities |
5,586,190 |
4,454,658 |
||||||
Equity: |
||||||||
|
||||||||
Preferred shares, |
||||||||
7.00% Series A fixed-to-floating rate cumulative redeemable perpetual preferred shares, 6,000 shares issued and outstanding (equivalent to 6,000,000 depositary shares at |
150,000 |
— |
||||||
6.25% Series B fixed rate cumulative redeemable perpetual preferred shares, 6,000 shares issued and outstanding (equivalent to 6,000,000 depositary shares at |
150,000 |
— |
||||||
Common shares, |
595 |
587 |
||||||
|
(158,459) |
(86,239) |
||||||
Additional paid-in capital |
428,945 |
416,609 |
||||||
Accumulated other comprehensive gain (loss) |
9,750 |
(9,744) |
||||||
Retained earnings |
1,200,423 |
938,395 |
||||||
|
1,781,254 |
1,259,608 |
||||||
Noncontrolling interest |
— |
27,110 |
||||||
Total equity |
1,781,254 |
1,286,718 |
||||||
Total liabilities and equity |
$ |
7,367,444 |
$ |
5,741,376 |
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||
Consolidated Statements of Cash Flows |
||||||||
(Unaudited) |
||||||||
(All currency expressed in |
||||||||
Years Ended |
||||||||
2021 |
2020 |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
$ |
284,288 |
$ |
73,673 |
||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation expense |
281,575 |
261,665 |
||||||
Bad debt recovery, net |
(1,285) |
(1,668) |
||||||
Container recovery from lessee default, net |
(4,868) |
(260) |
||||||
Unrealized (gain) loss on financial instruments, net |
(4,409) |
6,044 |
||||||
Amortization of unamortized debt issuance costs and accretion of bond discounts |
9,845 |
8,112 |
||||||
Debt termination expense |
15,209 |
8,750 |
||||||
Amortization of intangible assets |
2,540 |
2,572 |
||||||
Gain on sale of owned fleet containers, net |
(67,229) |
(27,230) |
||||||
Share-based compensation expense |
6,699 |
4,723 |
||||||
Changes in operating assets and liabilities |
89,418 |
59,874 |
||||||
Total adjustments |
327,495 |
322,582 |
||||||
Net cash provided by operating activities |
611,783 |
396,255 |
||||||
Cash flows from investing activities: |
||||||||
Purchase of containers and fixed assets |
(2,083,819) |
(746,145) |
||||||
Payment on container leaseback financing receivable |
(18,705) |
(116,263) |
||||||
Proceeds from sale of containers and fixed assets |
142,276 |
151,021 |
||||||
Receipt of principal payments on container leaseback financing receivable |
30,119 |
21,485 |
||||||
Net cash used in investing activities |
(1,930,129) |
(689,902) |
||||||
Cash flows from financing activities: |
||||||||
Proceeds from debt |
4,863,756 |
2,114,260 |
||||||
Payments on debt |
(3,635,663) |
(1,799,870) |
||||||
Payment of debt issuance costs |
(27,895) |
(13,637) |
||||||
Proceeds from container leaseback financing liability, net |
16,305 |
— |
||||||
Principal repayments on container leaseback financing liability, net |
(3,314) |
(12,825) |
||||||
Issuance of preferred shares, net of underwriting discount |
290,550 |
— |
||||||
Purchase of treasury shares |
(72,220) |
(68,493) |
||||||
Issuance of common shares upon exercise of share options |
9,043 |
1,295 |
||||||
Dividends paid on common shares |
(12,285) |
— |
||||||
Dividends paid on preferred shares |
(9,975) |
— |
||||||
Purchase of noncontrolling interest |
(21,500) |
— |
||||||
Other |
(970) |
— |
||||||
Net cash provided by financing activities |
1,395,832 |
220,730 |
||||||
Effect of exchange rate changes |
(79) |
177 |
||||||
Net increase (decrease) in cash, cash equivalents and restricted cash |
77,407 |
(72,740) |
||||||
Cash, cash equivalents and restricted cash, beginning of the year |
205,165 |
277,905 |
||||||
Cash, cash equivalents and restricted cash, end of the year |
$ |
282,572 |
$ |
205,165 |
||||
Supplemental disclosures of cash flow information: |
||||||||
Cash paid for interest expense and realized loss and settlement of derivative instruments |
$ |
145,711 |
$ |
126,958 |
||||
Income taxes paid |
$ |
1,567 |
$ |
34 |
||||
Receipt of payments on finance leases, net of income earned |
$ |
104,770 |
$ |
44,569 |
||||
Supplemental disclosures of noncash operating activities: |
||||||||
Receipt of marketable securities from a lessee |
$ |
5,789 |
$ |
- |
||||
Right-of-use asset for leased properties |
$ |
272 |
$ |
574 |
||||
Supplemental disclosures of noncash investing activities: |
||||||||
(Decrease) Increase in accrued container purchases |
$ |
(90,679) |
$ |
222,253 |
||||
Containers placed in finance leases |
$ |
1,043,323 |
$ |
635,004 |
Use of Non-GAAP Financial Information
To supplement
Management believes that adjusted net income and adjusted net income per diluted common share are useful in evaluating
Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in the tables below for the three and twelve months ended
Non-GAAP measures are not financial measures calculated in accordance with GAAP and are presented solely as supplemental disclosures. Non-GAAP measures have limitations as analytical tools, and should not be relied upon in isolation, or as a substitute to net income, income from operations, cash flows from operating activities, or any other performance measures derived in accordance with GAAP. Some of these limitations are:
- They do not reflect cash expenditures, or future requirements, for capital expenditures or contractual commitments;
- They do not reflect changes in, or cash requirements for, working capital needs;
- Adjusted EBITDA does not reflect interest expense or cash requirements necessary to service interest or principal payments on debt;
- Although depreciation expense and container impairment are a non-cash charge, the assets being depreciated may be replaced in the future, and neither adjusted EBITDA, adjusted net income or adjusted net income per diluted common share reflects any cash requirements for such replacements;
- They are not adjusted for all non-cash 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, |
|||||||||||||||||||
|
|
|
|
|
||||||||||||||||
(Dollars in thousands) |
(Dollars in thousands) |
|||||||||||||||||||
(Unaudited) |
(Unaudited) |
|||||||||||||||||||
Reconciliation of adjusted net income: |
||||||||||||||||||||
Net income attributable to common shareholders |
$ |
72,885 |
$ |
64,729 |
$ |
44,260 |
$ |
273,459 |
$ |
72,822 |
||||||||||
Adjustments: |
||||||||||||||||||||
Debt termination expense |
131 |
11,866 |
— |
15,209 |
8,750 |
|||||||||||||||
Unrealized loss (gain) on financial instruments, net |
272 |
(83) |
(3,390) |
(4,409) |
6,044 |
|||||||||||||||
Loss on settlement of pre-existing management agreement |
— |
116 |
— |
116 |
— |
|||||||||||||||
Impact of reconciling items on income tax |
(59) |
(126) |
37 |
(288) |
(142) |
|||||||||||||||
Impact of reconciling items attributable to the noncontrolling interest |
— |
— |
240 |
— |
(197) |
|||||||||||||||
Adjusted net income |
$ |
73,229 |
$ |
76,502 |
$ |
41,147 |
$ |
284,087 |
$ |
87,277 |
||||||||||
Adjusted net income per diluted common share |
$ |
1.46 |
$ |
1.52 |
$ |
0.81 |
$ |
5.62 |
$ |
1.63 |
||||||||||
Three Months Ended, |
Years Ended, |
|||||||||||||||||||
|
|
|
|
|
||||||||||||||||
(Dollars in thousands) |
(Dollars in thousands) |
|||||||||||||||||||
(Unaudited) |
(Unaudited) |
|||||||||||||||||||
Reconciliation of adjusted EBITDA: |
||||||||||||||||||||
Net income attributable to common shareholders |
$ |
72,885 |
$ |
64,729 |
$ |
44,260 |
$ |
273,459 |
$ |
72,822 |
||||||||||
Adjustments: |
||||||||||||||||||||
Interest income |
(40) |
(20) |
(52) |
(123) |
(531) |
|||||||||||||||
Interest expense |
34,888 |
33,128 |
27,973 |
127,269 |
123,230 |
|||||||||||||||
Debt termination expense |
131 |
11,866 |
— |
15,209 |
8,750 |
|||||||||||||||
Realized loss on derivative instruments, net |
— |
4 |
3,395 |
5,408 |
12,295 |
|||||||||||||||
Unrealized loss (gain) on financial instruments, net |
272 |
(83) |
(3,390) |
(4,409) |
6,044 |
|||||||||||||||
Loss on settlement of pre-existing management agreement |
— |
116 |
— |
116 |
— |
|||||||||||||||
Income tax expense (benefit) |
883 |
(59) |
(463) |
1,773 |
(374) |
|||||||||||||||
Net income attributable to the noncontrolling interest |
— |
— |
778 |
— |
851 |
|||||||||||||||
Depreciation expense |
72,915 |
72,839 |
65,609 |
281,575 |
261,665 |
|||||||||||||||
Container (recovery) write-off from lessee default, net |
(34) |
918 |
(122) |
(4,869) |
(1,647) |
|||||||||||||||
Amortization expense |
250 |
802 |
806 |
2,540 |
2,572 |
|||||||||||||||
Impact of reconciling items attributable to the noncontrolling interest |
— |
— |
(1,960) |
— |
(9,467) |
|||||||||||||||
Adjusted EBITDA |
$ |
182,150 |
$ |
184,240 |
$ |
136,834 |
$ |
697,948 |
$ |
476,210 |
||||||||||
Three Months Ended, |
Years Ended, |
|||||||||||||||||||
|
|
|
|
|
||||||||||||||||
(Dollars in thousands) |
(Dollars in thousands) |
|||||||||||||||||||
(Unaudited) |
(Unaudited) |
|||||||||||||||||||
Reconciliation of headline earnings: |
||||||||||||||||||||
Net income attributable to common shareholders |
$ |
72,885 |
$ |
64,729 |
$ |
44,260 |
$ |
273,459 |
$ |
72,822 |
||||||||||
Adjustments: |
||||||||||||||||||||
Container (recovery) impairment |
(140) |
1,183 |
590 |
(5,254) |
9,447 |
|||||||||||||||
Loss on settlement of pre-existing management agreement |
— |
116 |
— |
116 |
— |
|||||||||||||||
Impact of reconciling items on income tax |
1 |
(35) |
(4) |
25 |
(90) |
|||||||||||||||
Impact of reconciling items attributable to the noncontrolling interest |
— |
— |
(5) |
— |
(248) |
|||||||||||||||
Headline earnings |
$ |
72,746 |
$ |
65,993 |
$ |
44,841 |
$ |
268,346 |
$ |
81,931 |
||||||||||
Headline earnings per basic common share |
$ |
1.48 |
$ |
1.34 |
$ |
0.89 |
$ |
5.41 |
$ |
1.54 |
||||||||||
Headline earnings per diluted common share |
$ |
1.45 |
$ |
1.31 |
$ |
0.88 |
$ |
5.31 |
$ |
1.53 |
View original content:https://www.prnewswire.com/news-releases/textainer-group-holdings-limited-reports-fourth-quarter-and-full-year-2021-results-and-declares-dividend-301480221.html
SOURCE