Financial and Business Highlights
-
Lease rental income of
$120.2 million for the quarter, a decrease of 6.3 percent from the prior year quarter; -
Net loss attributable to
Textainer Group Holdings Limited common shareholders of$1.5 million for the quarter, or$0.03 per diluted common share; -
Adjusted net income (1) of
$3.0 million for the quarter, or$0.05 per diluted common share; -
We recorded
$19.5 million of container impairments resulting from a write down of our inventory of containers that are pending disposal. Excluding these non-cash impairments, adjusted net income would have been$21.8 million , or$0.38 per diluted share; - Utilization improved 1.0 percentage point from its low point in the quarter and is currently at 95.1 percent;
-
Continued expansion with
$432 million of capex invested year-to-date in 2016; and -
A quarterly dividend of
$0.03 per share was declared.
“Market conditions remain very challenging and the second quarter was no
exception. The main driver of our decline in performance remains the low
prices for new and used containers which results in reductions in lease
rental income and impairments on containers held for sale,” stated
“On the positive side, we saw an increase in new container prices during
the quarter, a strong pick-up in demand and we continued to generate
strong cash flow from operations. New prices hit a historic low of
approximately
“Our utilization improved and currently stands at 95.1%. We saw stronger
lease-out demand during the second quarter than we had anticipated, with
the three highest lease-out booking weeks in our history all occurring
during the quarter. Our unbooked depot inventory decreased by 40% from
the beginning of the second quarter until today and our utilization
increased by 1.0 percentage point which is a significant increase over
such a short period and containers have been picked up faster than we
expected. The strength of our utilization is due to many factors: 85% of
our fleet is subject to long-term and finance leases only 8.5% of which
mature in 2016, the structure of our leases require a majority of
containers to be returned in
Key Financial Information (in thousands except for per share and TEU amounts): |
|||||||||||||||||||||||
Q2 QTD | Q2 YTD | ||||||||||||||||||||||
2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||||||||||||||
Total revenues | $ | 127,449 | $ | 138,165 | -7.8 | % | $ | 256,363 | $ | 277,316 | -7.6 | % | |||||||||||
Income from operations | $ | 26,832 | $ | 62,839 | -57.3 | % | $ | 56,562 | $ | 128,922 | -56.1 | % | |||||||||||
Net (loss) income attributable to Textainer Group Holdings
Limited common shareholders |
$ | (1,457 | ) | $ | 40,261 | -103.6 | % | $ | (4,851 | ) | $ | 75,566 | -106.4 | % | |||||||||
Net (loss) income attributable to Textainer Group Holdings
Limited common shareholders per diluted common share |
$ | (0.03 | ) | $ | 0.70 | -104.3 | % | $ | (0.09 | ) | $ | 1.32 | -106.8 | % | |||||||||
Adjusted net income (1) | $ | 2,959 | $ | 37,725 | -92.2 | % | $ | 9,324 | $ | 78,273 | -88.1 | % | |||||||||||
Adjusted net income per diluted common share (1) | $ | 0.05 | $ | 0.66 | -92.4 | % | $ | 0.16 | $ | 1.37 | -88.3 | % | |||||||||||
Adjusted EBITDA (1) | $ | 95,622 | $ | 111,027 | -13.9 | % | $ | 192,151 | $ | 221,846 | -13.4 | % | |||||||||||
Net cash provided by operating activities | $ | 149,448 | $ | 177,187 | -15.7 | % | |||||||||||||||||
Average fleet utilization | 94.7 | % | 97.3 | % | -2.7 | % | 94.6 | % | 97.6 | % | -3.1 | % | |||||||||||
Total fleet size at end of period (TEU) | 3,195,378 | 3,276,509 | -2.5 | % | |||||||||||||||||||
Owned percentage of total fleet at end of period | 81.0 | % | 79.7 | % | 1.6 | % | |||||||||||||||||
“Adjusted net income” and “adjusted EBITDA” are Non-GAAP Measures that
are reconciled to GAAP measures in footnote 1. “Adjusted net income” is
defined as net (loss) income attributable to
Second-Quarter Results
Textainer’s second quarter results compared to the prior year quarter were adversely impacted primarily by an increase in container impairments due to a decrease in used container prices and an increase in the quantity of containers designated for disposal. Depreciation expense increased primarily due to a reduction in the 40’ high-cube container residual value in 2015 and an increase in the size of our owned refrigerated container fleet. Furthermore, lease rental income decreased due to a decrease in rental rates and lower utilization, direct container expense increased primarily due to an increase in storage costs resulting from lower utilization and higher storage rates and we had a net loss on trading containers in the second quarter of 2016 compared to a net gain in 2015 primarily due to lower sales prices.
During the second-quarter of 2016,
Dividend
On August 4, 2016, Textainer’s board of directors approved and declared
a quarterly cash dividend of
“We declared a dividend of
Based on the information available today, this distribution will qualify as a return of capital rather than a taxable dividend for U.S. tax purposes. Investors should consult with a tax adviser to determine the proper tax treatment of this distribution.
Outlook
“Based on recent discussions with our customers, we believe the strong increase in demand for dry containers we experienced in the second quarter will continue into the third quarter although possibly at a slightly reduced pace. We do not expect a significant improvement in new container prices occurring prior to year-end. As long as new container prices remain low, rental rates for new, depot and lease-renewal containers will remain under pressure and lease rental income can be expected to decline,” stated Mr. Brewer. “The credit quality of certain shipping lines is a major concern. While consolidation has strengthened some lines, the overall credit risk of our customer base has increased due to weak demand and low freight rates.”
“New dry freight container production could be less than 1.5 million TEU, compared to 2.5 million TEU produced last year, which is approximately equal to the quantity of containers disposed annually. Refrigerated container production is also expected to be below last year’s record level. This means the world’s container fleet is unlikely to grow and may decline this year. As containers are not in an oversupply situation, we expect our utilization to continue to improve in the third quarter. Furthermore, should there be an unexpected spike in demand as has often happened in the past, the container leasing market could strengthen quickly.”
“We benefited this quarter by purchasing many containers at attractive prices. These containers were leased out at terms which were better than the returns generated by containers leased during the preceding six months and they can be expected to perform very well over their useful lives as they depreciate,” concluded Mr. Brewer.
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 belief that
the strong increase in demand for dry containers it experienced in the
second quarter will continue into the third quarter although possibly at
a reduced pace; (ii) Textainer’s expectation that there will not be a
significant improvement in new container prices occurring prior to
year-end; (iii) Textainer’s belief that as long as new container prices
remain low, rental rates for new, depot and lease-renewal containers
will remain under pressure and lease rental income can be expected to
decline, (iv) Textainer’s expectation that new dry freight container
production could be less than 1.5 million TEU compared to 2.5 million
TEU produced last year; (v) Textainer’s expectation that refrigerated
container production will be below last year’s record level; (vi)
Textainer’s belief that the world’s container fleet is unlikely to grow
and may decline this year; (vii) Textainer’s expectation that
utilization will improve in the third quarter since containers are not
in an oversupply situation; (viii) Textainer’s belief that, should there
be an unexpected spike in demand as has often happened in the past, the
container leasing could strengthen quickly; and (ix) Textainer’s
expectation that containers purchased during the second quarter at
attractive prices will perform very well over their useful lives as they
depreciate. 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 |
||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Lease rental income | $ | 120,223 | $ | 128,342 | $ | 242,273 | $ | 257,588 | ||||||||||||||||||||||||
Management fees | 3,294 | 4,010 | 6,638 | 8,027 | ||||||||||||||||||||||||||||
Trading container sales proceeds | 3,062 | 4,220 | 4,964 | 9,052 | ||||||||||||||||||||||||||||
Gains on sale of containers, net | 870 | 1,593 | 2,488 | 2,649 | ||||||||||||||||||||||||||||
Total revenues | 127,449 | 138,165 | 256,363 | 277,316 | ||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Direct container expense | 14,549 | 9,965 | 29,178 | 19,169 | ||||||||||||||||||||||||||||
Cost of trading containers sold | 3,614 | 3,916 | 6,258 | 8,608 | ||||||||||||||||||||||||||||
Depreciation expense | 51,757 | 44,673 | 104,306 | 88,472 | ||||||||||||||||||||||||||||
Container impairment | 19,484 | 4,685 | 36,776 | 7,855 | ||||||||||||||||||||||||||||
Amortization expense | 1,372 | 1,167 | 2,746 | 2,334 | ||||||||||||||||||||||||||||
General and administrative expense | 6,599 | 7,275 | 13,765 | 14,495 | ||||||||||||||||||||||||||||
Short-term incentive compensation (benefit) expense | (93 | ) | 719 | 680 | 1,438 | |||||||||||||||||||||||||||
Long-term incentive compensation expense | 1,498 | 1,810 | 3,106 | 3,481 | ||||||||||||||||||||||||||||
Bad debt expense, net | 1,837 | 1,116 | 2,986 | 2,542 | ||||||||||||||||||||||||||||
Total operating expenses | 100,617 | 75,326 | 199,801 | 148,394 | ||||||||||||||||||||||||||||
Income from operations | 26,832 | 62,839 | 56,562 | 128,922 | ||||||||||||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||||||||||
Interest expense | (20,022 | ) | (19,265 | ) | (39,987 | ) | (38,660 | ) | ||||||||||||||||||||||||
Interest income | 103 | 24 | 179 | 63 | ||||||||||||||||||||||||||||
Realized losses on interest rate swaps, collars and caps, net |
(2,378 | ) | (3,228 | ) | (4,731 | ) | (6,094 | ) | ||||||||||||||||||||||||
Unrealized (losses) gains on interest rate swaps, collars and caps, net |
(5,022 | ) | 3,326 | (16,199 | ) | (2,675 | ) | |||||||||||||||||||||||||
Other, net | 3 | 13 | (5 | ) | 13 | |||||||||||||||||||||||||||
Net other expense | (27,316 | ) | (19,130 | ) | (60,743 | ) | (47,353 | ) | ||||||||||||||||||||||||
(Loss) income before income tax and noncontrolling interests |
(484 | ) | 43,709 | (4,181 | ) | 81,569 | ||||||||||||||||||||||||||
Income tax expense | (797 | ) | (1,151 | ) | (817 | ) | (2,635 | ) | ||||||||||||||||||||||||
Net (loss) income | (1,281 | ) | 42,558 | (4,998 | ) | 78,934 | ||||||||||||||||||||||||||
Less: Net (income) loss attributable to the noncontrolling interests |
(176 | ) | (2,297 | ) | 147 | (3,368 | ) | |||||||||||||||||||||||||
Net (loss) income attributable to Textainer Group Holdings Limited common shareholders |
$ | (1,457 | ) | $ | 40,261 | $ | (4,851 | ) | $ | 75,566 | ||||||||||||||||||||||
Net (loss) income attributable to Textainer Group Holdings Limited common shareholders per share: |
||||||||||||||||||||||||||||||||
Basic | $ | (0.03 | ) | $ | 0.71 | $ | (0.09 | ) | $ | 1.33 | ||||||||||||||||||||||
Diluted | $ | (0.03 | ) | $ | 0.70 | $ | (0.09 | ) | $ | 1.32 | ||||||||||||||||||||||
Weighted average shares outstanding (in thousands): | ||||||||||||||||||||||||||||||||
Basic | 56,580 | 56,990 | 56,575 | 56,985 | ||||||||||||||||||||||||||||
Diluted | 56,580 | 57,160 | 56,575 | 57,169 | ||||||||||||||||||||||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | 111 | (4 | ) | (2 | ) | (119 | ) | |||||||||||||||||||||||||
Comprehensive (loss) income | (1,170 | ) | 42,554 | (5,000 | ) | 78,815 | ||||||||||||||||||||||||||
Comprehensive (income) loss attributable to the noncontrolling interests |
(176 | ) | (2,297 | ) | 147 | (3,368 | ) | |||||||||||||||||||||||||
Comprehensive (loss) income attributable to Textainer Group Holdings Limited common shareholders |
$ | (1,346 | ) | $ | 40,257 | $ | (4,853 | ) | $ | 75,447 | ||||||||||||||||||||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
June 30, 2016 and December 31, 2015 | ||||||||
(Unaudited) | ||||||||
(All currency expressed in United States dollars in thousands) | ||||||||
2016 | 2015 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 104,754 | $ | 115,594 | ||||
Accounts receivable, net of allowance for doubtful accounts of $16,744 and $14,053 in 2016 and 2015, respectively |
93,996 | 88,370 | ||||||
Net investment in direct financing and sales-type leases | 107,947 | 87,706 | ||||||
Trading containers | 5,012 | 4,831 | ||||||
Containers held for sale | 35,346 | 43,245 | ||||||
Prepaid expenses and other current assets | 18,970 | 8,385 | ||||||
Insurance receivable | 6,838 | 11,435 | ||||||
Due from affiliates, net | 765 | 514 | ||||||
Total current assets | 373,628 | 360,080 | ||||||
Restricted cash | 34,587 | 33,917 | ||||||
Containers, net of accumulated depreciation of $889,023 and $810,393 at 2016 and 2015, respectively |
3,669,374 | 3,698,011 | ||||||
Net investment in direct financing and sales-type leases | 258,831 | 243,428 | ||||||
Fixed assets, net of accumulated depreciation of $10,226 and $9,836 at 2016 and 2015, respectively |
1,877 | 1,663 | ||||||
Intangible assets, net of accumulated amortization of $38,455 and $35,709 at 2016 and 2015, respectively |
17,504 | 20,250 | ||||||
Interest rate swaps, collars and caps | - | 814 | ||||||
Deferred taxes | 1,522 | 1,203 | ||||||
Other assets | 7,637 | 6,988 | ||||||
Total assets | $ | 4,364,960 | $ | 4,366,354 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 11,603 | $ | 10,477 | ||||
Accrued expenses | 6,855 | 6,816 | ||||||
Container contracts payable | 66,550 | 41,356 | ||||||
Other liabilities | 278 | 291 | ||||||
Due to owners, net | 5,114 | 11,806 | ||||||
Revolving credit facility | 32,853 | - | ||||||
Term loan | 30,911 | 31,097 | ||||||
Bonds payable | 58,915 | 58,788 | ||||||
Total current liabilities | 213,079 | 160,631 | ||||||
Revolving credit facilities | 1,037,862 | 1,013,252 | ||||||
Secured debt facilities | 1,045,868 | 1,062,539 | ||||||
Term loan | 383,638 | 403,500 | ||||||
Bonds payable | 404,979 | 434,472 | ||||||
Interest rate swaps, collars and caps | 18,797 | 3,412 | ||||||
Income tax payable | 9,242 | 8,678 | ||||||
Deferred taxes | 10,922 | 10,420 | ||||||
Other liabilities | 2,391 | 2,523 | ||||||
Total liabilities | 3,126,778 | 3,099,427 | ||||||
Equity: | ||||||||
Textainer Group Holdings Limited shareholders’ equity: | ||||||||
Common shares, $0.01 par value. Authorized 140,000,000 shares; 57,220,797 shares issued and 56,590,797 shares outstanding at 2016; 57,163,095 shares issued and 56,533,095 shares outstanding at 2015 |
572 | 572 | ||||||
Additional paid-in capital | 388,333 | 385,020 | ||||||
Treasury shares, at cost, 630,000 shares | (9,149 | ) | (9,149 | ) | ||||
Accumulated other comprehensive income | (285 | ) | (283 | ) | ||||
Retained earnings | 794,606 | 826,515 | ||||||
Total Textainer Group Holdings Limited shareholders’ equity | 1,174,077 | 1,202,675 | ||||||
Noncontrolling interest | 64,105 | 64,252 | ||||||
Total equity | 1,238,182 | 1,266,927 | ||||||
Total liabilities and equity | $ | 4,364,960 | $ | 4,366,354 | ||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||
2016 | 2015 | |||||||
Cash flows from operating activities: | ||||||||
Net (loss) income | $ | (4,998 | ) | $ | 78,934 | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
Depreciation expense | 104,306 | 88,472 | ||||||
Container impairment | 36,776 | 7,855 | ||||||
Bad debt expense, net | 2,986 | 2,542 | ||||||
Unrealized losses on interest rate swaps, collars and caps, net | 16,199 | 2,675 | ||||||
Amortization of debt issuance costs and accretion of bond discount | 3,765 | 4,219 | ||||||
Amortization of intangible assets | 2,746 | 2,334 | ||||||
Gains on sale of containers, net | (2,488 | ) | (2,649 | ) | ||||
Share-based compensation expense | 3,423 | 3,801 | ||||||
Changes in operating assets and liabilities | (13,267 | ) | (10,996 | ) | ||||
Total adjustments | 154,446 | 98,253 | ||||||
Net cash provided by operating activities | 149,448 | 177,187 | ||||||
Cash flows from investing activities: | ||||||||
Purchase of containers and fixed assets | (228,073 | ) | (370,524 | ) | ||||
Proceeds from sale of containers and fixed assets | 61,154 | 59,964 | ||||||
Receipt of payments on direct financing and sales-type leases, net of income earned | 46,858 | 49,430 | ||||||
Net cash used in investing activities | (120,061 | ) | (261,130 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from revolving credit facilities | 153,000 | 159,177 | ||||||
Principal payments on revolving credit facilities | (95,322 | ) | (140,321 | ) | ||||
Proceeds from secured debt facilities | 40,000 | 160,000 | ||||||
Principal payments on secured debt facilities | (58,600 | ) | (21,500 | ) | ||||
Principal payments on term loan | (19,800 | ) | (19,800 | ) | ||||
Principal payments on bonds payable | (30,115 | ) | (30,115 | ) | ||||
(Increase) decrease in restricted cash | (670 | ) | 17,828 | |||||
Debt issuance costs | (1,550 | ) | (4,154 | ) | ||||
Issuance of common shares upon exercise of share options | — | 194 | ||||||
Net tax benefit from share-based compensation awards | (110 | ) | 94 | |||||
Capital contributions from noncontrolling interests | — | 1,850 | ||||||
Dividends paid | (27,058 | ) | (53,564 | ) | ||||
Net cash (used in) provided by financing activities | (40,225 | ) | 69,689 | |||||
Effect of exchange rate changes | (2 | ) | (119 | ) | ||||
Net decrease in cash and cash equivalents | (10,840 | ) | (14,373 | ) | ||||
Cash and cash equivalents, beginning of the year | 115,594 | 107,067 | ||||||
Cash and cash equivalents, end of the period | $ | 104,754 | $ | 92,694 | ||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Reconciliation
of GAAP financial measures to non-GAAP financial measures
Three and
six Months Ended June 30, 2016 and 2015
(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 and six months ended June 30, 2016 and 2015, including:
(a) net (loss) income attributable to
(b) net cash provided by operating activities to Adjusted EBITDA;
(c) net (loss) income attributable to Textainer Group Holdings Limited
common shareholders to adjusted net income (defined as net (loss) income
attributable to
(d) net (loss) income 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 (loss) income, 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 may be a useful performance measure because
Management also believes that adjusted net income and adjusted net income per diluted common share are useful in evaluating our operating performance because unrealized losses (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 or adjusted net income 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 | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Reconciliation of adjusted net income: | ||||||||||||||||
Net (loss) income attributable to Textainer Group Holdings Limited common shareholders |
$ | (1,457 | ) | $ | 40,261 | $ | (4,851 | ) | $ | 75,566 | ||||||
Adjustments: | ||||||||||||||||
Write-off of unamortized debt issuance costs |
— |
160 |
— | 458 | ||||||||||||
Unrealized losses (gains) on interest rate swaps, collars and caps, net |
5,022 | (3,326 | ) | 16,199 | 2,675 | |||||||||||
Impact of reconciling items on income tax expense | (61 | ) | 154 | (266 | ) | (108 | ) | |||||||||
Impact of reconciling items on net income (loss) attributable to the noncontrolling interests |
(545 | ) | 476 | (1,758 | ) | (318 | ) | |||||||||
Adjusted net income | $ | 2,959 | $ | 37,725 | $ | 9,324 | $ | 78,273 | ||||||||
Reconciliation of adjusted net income per diluted common share: | ||||||||||||||||
Net (loss) income attributable to Textainer Group Holdings Limited common shareholders per diluted common share |
$ | (0.03 | ) | $ | 0.70 | $ | (0.09 | ) | $ | 1.32 | ||||||
Adjustments: | ||||||||||||||||
Write-off of unamortized debt issuance costs | — |
— |
— | 0.01 | ||||||||||||
Unrealized losses (gains) on interest rate swaps, collars and caps, net |
0.09 | (0.05 | ) | 0.28 | 0.05 | |||||||||||
Impact of reconciling items on income tax expense | — | — | — | — | ||||||||||||
Impact of reconciling items on net income (loss) attributable to the noncontrolling interests |
(0.01 | ) | 0.01 | (0.03 | ) | (0.01 | ) | |||||||||
Adjusted net income per diluted common share |
$ | 0.05 | $ | 0.66 | $ | 0.16 | $ | 1.37 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Reconciliation of adjusted EBITDA: | ||||||||||||||||
Net (loss) income attributable to Textainer Group Holdings
Limited common shareholders |
$ | (1,457 | ) | $ | 40,261 | $ | (4,851 | ) | $ | 75,566 | ||||||
Adjustments: | ||||||||||||||||
Interest income | (103 | ) | (24 | ) | (179 | ) | (63 | ) | ||||||||
Interest expense | 20,022 | 19,265 | 39,987 | 38,660 | ||||||||||||
Realized losses on interest rate swaps, collars and caps, net | 2,378 | 3,228 | 4,731 | 6,094 | ||||||||||||
Unrealized losses (gains) on interest rate swaps, collars and caps, net | 5,022 | (3,326 | ) | 16,199 | 2,675 | |||||||||||
Income tax expense | 797 | 1,151 | 817 | 2,635 | ||||||||||||
Net income (loss) attributable to the noncontrolling interests | 176 | 2,297 | (147 | ) | 3,368 | |||||||||||
Depreciation expense | 51,757 | 44,673 | 104,306 | 88,472 | ||||||||||||
Container impairment | 19,484 | 4,685 | 36,776 | 7,855 | ||||||||||||
Amortization expense | 1,372 | 1,167 | 2,746 | 2,334 | ||||||||||||
Impact of reconciling items on net income (loss) attributable to the noncontrolling interests |
(3,826 | ) | (2,350 | ) | (8,234 | ) | (5,750 | ) | ||||||||
Adjusted EBITDA | $ | 95,622 | $ | 111,027 | $ | 192,151 | $ | 221,846 | ||||||||
Net cash provided by operating activities | $ | 149,448 | $ | 177,187 | ||||||||||||
Adjustments: | ||||||||||||||||
Bad debt expense, net | (2,986 | ) | (2,542 | ) | ||||||||||||
Amortization of debt issuance costs and accretion of bond discount |
(3,765 | ) | (4,219 | ) | ||||||||||||
Gains on sale of containers, net | 2,488 | 2,649 | ||||||||||||||
Share-based compensation expense | (3,423 | ) | (3,801 | ) | ||||||||||||
Interest income | (179 | ) | (63 | ) | ||||||||||||
Interest expense | 39,987 | 38,660 | ||||||||||||||
Realized losses on interest rate swaps, collars and caps, net | 4,731 | 6,094 | ||||||||||||||
Income tax expense | 817 | 2,635 | ||||||||||||||
Changes in operating assets and liabilities | 13,267 | 10,996 | ||||||||||||||
Impact of reconciling items on net income (loss) attributable to the noncontrolling interests |
(8,234 | ) | (5,750 | ) | ||||||||||||
Adjusted EBITDA | $ | 192,151 | $ | 221,846 | ||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160809005538/en/
Source:
Textainer Group Holdings Limited
Hilliard C. Terry, III, +1
415-658-8214
Executive Vice President and Chief Financial Officer
ir@textainer.com