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
February 14, 2012
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  x            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):  ¨

 

This report contains a copy of the press release entitled “Textainer Group Holdings Limited Reports Record Fourth-Quarter and Full-Year 2011 Results and Increases Quarterly Dividend,” dated February 14, 2012. As discussed on the Company’s publicly available call on February 14, 2012, in the “Outlook” section of the attached press release it incorrectly notes that the Company has already ordered 5,000 TEU of refrigerated containers in 2012. The Company has actually ordered 5,000 refrigerated container units in 2012, which equals 10,000 TEU (Twenty-Foot Equivalent Units).

Exhibit	
 	 	
1.	  	Press Release dated February 14, 2012	

2

Textainer Group Holdings Limited Reports Record Fourth-Quarter and Full-
Year 2011 Results and Increases Quarterly Dividend
Highlights:
 
 	•	 	Our fourth quarter of 2011 closed out a record year for Textainer in terms of revenues, profitability, fleet size, utilization and capital expenditures;	
 
 	•	 	Record net income attributable to Textainer Group Holdings Limited common shareholders of $54.9 million, or $1.10 per diluted common share, for the fourth quarter and $189.6 million, or $3.80 per diluted common share, for the full year;	
 
 	•	 	Record adjusted net income(1) of $53.0 million, or $1.06 per diluted common share, for the fourth quarter and $178.2 million, or $3.58 per diluted common share, for the full year;	
 
 	•	 	Average fleet utilization of 97.7% for the fourth quarter of 2011, and a record 98.3% for the full year;	
 
 	•	 	Total capital expenditures for both our owned and managed fleets were $904 million for the year, used to purchase 215,000 Twenty-Foot Equivalent Units (“TEU”) of new standard dry-freight containers, 18,000 TEU of new refrigerated containers and 215,000 TEU of used containers, all new records;	
 
 	•	 	Paid a $0.35 per share dividend in the fourth quarter and declared a $0.37 per share dividend in the first quarter of 2012, an increase of 5.7%.	
HAMILTON, Bermuda, February 14, 2012 (BUSINESS WIRE) — Textainer Group Holdings Limited (NYSE: TGH), the world’s largest lessor of intermodal containers based on fleet size, today reported results for the fourth quarter and full year ended December 31, 2011. “Our fourth quarter closed out a record year for Textainer by every meaningful performance measure, including total revenues, profitability, utilization and fleet size,” said Philip K. Brewer, President and Chief Executive Officer of Textainer. “We also significantly increased our capital expenditures to $904 million, purchasing 448,000 TEU of containers positioning the Company for further success in 2012.”
Key Financial Information (in thousands except for per share and TEU amounts):

 	  	Q4 2011	 	 	Q4 2010	 	 	Full-year 2011	 	 	Full-year 2010	 	
Total revenues	  	$	116,377	  	 	$	83,999	  	 	$	422,796	  	 	$	303,879	  	
 	 	 	 	 	
Net income attributable to Textainer Group Holdings Limited common shareholders	  	$	54,919	  	 	$	40,047	  	 	$	189,606	  	 	$	120,031	  	
 	 	 	 	 	
Net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share	  	$	1.10	  	 	$	0.81	  	 	$	3.80	  	 	$	2.43	  	
 	 	 	 	 	
Adjusted net income(1)	  	$	53,008	  	 	$	35,701	  	 	$	178,199	  	 	$	123,451	  	
Adjusted net income per diluted common share(1)	  	$	1.06	  	 	$	0.72	  	 	$	3.58	  	 	$	2.50	  	
EBITDA(1)	  	$	89,213	  	 	$	65,300	  	 	$	332,212	  	 	$	218,995	  	
Average fleet utilization	  	 	97.7	% 	 	 	98.0	% 	 	 	98.3	% 	 	 	95.4	% 	
Total fleet size at end of period (TEU)	  	 	2,469,039	  	 	 	2,314,219	  	 	 	 	 	 	 	 	 	
Owned percentage of total fleet at end of period	  	 	58.6	% 	 	 	50.9	% 	 	 	 	 	 	 	 	 	
 
3

“Adjusted net income” and “EBITDA” are Non-GAAP Measures that are reconciled to GAAP measures in footnote 1. “Adjusted net income” is defined as net income attributable to Textainer Group Holdings Limited common shareholders before unrealized losses on interest rate swaps, net, and gain on sale of containers to noncontrolling interest (“NCI”) and related impact of reconciling items on net income attributable to the NCI. “EBITDA” is defined as net income attributable to Textainer Group Holdings Limited common shareholders before interest income and interest expense, realized and unrealized losses on interest rate swaps and caps, net, income tax expense, net income attributable to the NCI, depreciation and amortization expense, and gain on sale of containers to NCI and related impact of reconciling items on net income attributable to the NCI. Footnote 1 provides certain qualifications and limitations on the use of Non-GAAP Measures.
All of Textainer’s financial results above were positively impacted by the following items in the fourth quarter 2011, compared to the year ago quarter:
 
 	•	 	28.0% increase in the average size of the owned container fleet;	
 
 	•	 	1.7% increase in average per diem rental rates;	
 
 	•	 	$2.3 million increase in net gain on container trading due to increased sales volume and average sales proceeds per container; and	
 
 	•	 	An increase in estimated residual values, beginning July 1, 2011, used in the calculation of depreciation expense which resulted in $4.8 million less depreciation expense than would have been recorded using prior residual values.	
These items were partially offset by increases in depreciation expense and interest expense due to the increase in the size of the owned container fleet and associated debt to fund this expansion.
All of Textainer’s financial results above were positively impacted by the following items for full-year 2011, compared to the prior year:
 
 	•	 	29.5% increase in the average size of the owned container fleet;	
 
 	•	 	7.1% increase in average per diem rental rates;	
 
 	•	 	2.9 percentage point increase in utilization;	
 
 	•	 	$2.5 million increase in net gain on container trading due to increased sales volume and average sales proceeds per container;	
 
 	•	 	$7.2 million decrease in direct container expense primarily due to reduced storage expense;	
 
 	•	 	An increase in estimated residual values, beginning July 1, 2011, used in the calculation of depreciation expense, which resulted in $9.5 million less depreciation expense than would have been recorded using prior residual values; and	
 
4

 	•	 	A capital restructuring of our primary asset-owning subsidiary, Textainer Marine Containers Limited (“TMCL”), effective June 30, 2011, whereby our wholly-owned subsidiary, Textainer Limited, now owns 100% of TMCL, eliminating the related noncontrolling interest. The restructuring resulted in a $19.8 million gain on sale of containers to the prior noncontrolling interest holder. The gain was the result of recognizing the fair value of containers and direct financing and sales-type leases in excess of their book value exchanged for TMCL’s common shares at the time of the transaction. This was a noncash transaction.	
These items were partially offset by increases in depreciation expense and interest expense due to the increase in the size of the owned container fleet and associated debt to fund this expansion.
TMCL’s issuance of $400 million in fixed rate asset backed notes in June represented one of the largest container securitizations in history and again demonstrated Textainer’s ability to attract strong investor support in the debt markets. With a debt-to-equity ratio of 2.2:1, the Company is in a strong position to continue purchasing both new and used containers to meet market demand and maintain our industry leading position.
Outlook
Capital expenditures for new standard dry-freight and refrigerated containers were the highest in the Company’s history and in-fleet container utilization continues to remain at or near historic highs. Demand for new standard dry-freight containers began to slow during the second quarter but demand for depot equipment remained strong. Utilization declined by approximately 1%, over the last half of the year. “With 2011 as a backdrop, we expect that utilization may continue its slight decline during the first quarter of 2012, but that the overall level will remain attractive,” commented Mr. Brewer. “We are optimistic that utilization may level off or start to improve during the second quarter of 2012 and with 78% of our fleet committed to long-term and direct financing and sales-type leases, we have a sizeable contracted revenue stream which we expect will continue to provide our shareholders with attractive returns. We are off to a good start in 2012, with 32,000 TEU of dry freight containers and 5,000 TEU of refrigerated containers already ordered. Furthermore, resale prices have recently declined in some locations but, relative to the last ten years, current resale price levels remain very high.”
Dividend
On February 10, 2012, Textainer’s board of directors approved and declared a quarterly cash dividend of $0.37 per share on Textainer’s issued and outstanding common shares, payable on March 6, 2012 to shareholders of record as of February 24, 2012. This dividend is an increase of $0.02 per share from the prior quarter, Textainer’s eighth consecutive quarterly increase, and will continue the Company’s history of paying constant or higher dividends every quarter since its October 2007 initial public offering. Combined, these dividends have averaged 43% of Adjusted net income(1) during this period. The current dividend represents 35% of Adjusted net income(1).
Investors’ Webcast
Textainer will hold a conference call and a Webcast with an accompanying slide presentation at 11:00 am EST on Tuesday, February 14, 2012 to discuss Textainer’s 2011 fourth-quarter and full-year results. An archive of the Webcast will be available one hour after the live call through February 14, 2013. For callers in the U.S. the dial-in number for the conference call is 877-303-9078; for callers outside the U.S. the dial-in number for the conference call is 970-315-0455. To access the live Webcast or archive, please visit Textainer’s website at  http://www.textainer.com .
About Textainer Group Holdings Limited
Textainer Group Holdings Limited and its subsidiaries (“Textainer”) is the world’s largest lessor of intermodal containers based on fleet size. The Company began operations in 1979 and as of the most recent quarter end had more than 1.6 million containers, representing more than 2.4 million TEU, in its owned and
 
5

managed fleet. Textainer leases dry freight, refrigerated, and specialized containers. Each year the Company is one of the largest purchasers of new containers as well as one of the largest sellers of used containers. Textainer leases containers to approximately 400 shipping lines and other lessees and sells containers to more than 1,000 customers worldwide and provides services worldwide via a network of regional and area offices, as well as independent depots.
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 it is in a strong position to continue purchasing both new and used containers to meet market demand and maintain its industry leading position; (ii) Textainer’s expectation that utilization may continue its slight decline during the first quarter of 2012, but that the overall level will remain attractive and (iii) Textainer’s expectation that its sizeable contracted revenue stream will continue to provide its shareholders with attractive returns. 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 recoveries; lease rates may decrease and lessees may default, which could decrease revenue and increasing storage, repositioning, collection and recovery expenses; we own a large and growing number of containers in our fleet and are subject to significant ownership risk; further consolidation of container manufacturers or the disruption of manufacturing for the major manufacturers could result in higher new container prices and/or decreased supply of new containers and any increase in the cost or reduction in the supply of new containers; the demand for leased containers depends on many political and economic factors beyond Textainer’s control; the demand for leased containers is partially tied to international trade and if this demand were to decrease due to increased barriers to trade, or for any other reason, it could reduce demand for intermodal container leasing; as we increase the number of containers in our owned fleet, we will have significant capital at risk and may need to incur more debt, which could result in financial instability; Textainer faces extensive competition in the container leasing industry; the international nature of the container shipping industry exposes Textainer to numerous risks; gains and losses associated with the disposition of used equipment may fluctuate; our indebtedness reduces our financial flexibility and could impede our ability to operate; 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 4 “Risk Factors” in Textainer’s Quarterly Report on Form 6-K and Item 3 “Key Information— Risk Factors” in Textainer’s Annual Report on Form 20-F filed with the Securities and Exchange Commission on November 14, 2011 and March 18, 2011, respectively.
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.
Contact:
Textainer Group Holdings Limited
Mr. Tom Gallo, 415-658-8227
Investor Relations Director
ir@textainer.com
 
6

TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Condensed Consolidated Statements of Income
Three Months and Years Ended December 31, 2011 and 2010
(Unaudited)
(All currency expressed in United States dollars in thousands, except per share amounts)

 	  	Three Months Ended
December 31,	 	 	Years Ended
December 31,	 	
 	  	2011	 	 	2010	 	 	2011	 	 	2010	 	
Revenues:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lease rental income	  	$	87,072	  	 	$	68,237	  	 	$	327,627	  	 	$	235,827	  	
Management fees	  	 	6,628	  	 	 	8,072	  	 	 	29,324	  	 	 	29,137	  	
Trading container sales proceeds	  	 	14,770	  	 	 	1,445	  	 	 	34,214	  	 	 	11,291	  	
Gains on sale of containers, net	  	 	7,907	  	 	 	6,245	  	 	 	31,631	  	 	 	27,624	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	116,377	  	 	 	83,999	  	 	 	422,796	  	 	 	303,879	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses (income):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Direct container expense	  	 	5,554	  	 	 	4,094	  	 	 	18,307	  	 	 	25,542	  	
Cost of trading containers sold	  	 	12,219	  	 	 	1,146	  	 	 	29,456	  	 	 	9,046	  	
Depreciation expense	  	 	21,501	  	 	 	18,050	  	 	 	83,177	  	 	 	58,972	  	
Amortization expense	  	 	1,335	  	 	 	1,756	  	 	 	6,110	  	 	 	6,544	  	
General and administrative expense	  	 	5,453	  	 	 	5,575	  	 	 	23,495	  	 	 	21,670	  	
Short-term incentive compensation expense	  	 	1,209	  	 	 	1,342	  	 	 	4,921	  	 	 	4,805	  	
Long-term incentive compensation expense	  	 	1,486	  	 	 	1,118	  	 	 	5,950	  	 	 	5,318	  	
Bad debt expense, net	  	 	782	  	 	 	399	  	 	 	3,007	  	 	 	145	  	
Gain on sale of containers to noncontrolling interest	  	 	—  	  	 	 	—  	  	 	 	(19,773	) 	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses, net	  	 	49,539	  	 	 	33,480	  	 	 	154,650	  	 	 	132,042	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from operations	  	 	66,838	  	 	 	50,519	  	 	 	268,146	  	 	 	171,837	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income (expense):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	 	(14,649	) 	 	 	(6,658	) 	 	 	(44,891	) 	 	 	(18,151	) 	
Interest income	  	 	12	  	 	 	13	  	 	 	32	  	 	 	27	  	
Realized losses on interest rate swaps and caps, net	  	 	(2,654	) 	 	 	(2,445	) 	 	 	(10,824	) 	 	 	(9,844	) 	
Unrealized gains (losses) on interest rate swaps, net	  	 	1,909	  	 	 	5,495	  	 	 	(3,849	) 	 	 	(4,021	) 	
Other, net	  	 	3	  	 	 	(762	) 	 	 	(115	) 	 	 	(1,591	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other expense, net	  	 	(15,379	) 	 	 	(4,357	) 	 	 	(59,647	) 	 	 	(33,580	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before income tax and noncontrolling interest	  	 	51,459	  	 	 	46,162	  	 	 	208,499	  	 	 	138,257	  	
Income tax benefit (expense)	  	 	3,030	  	 	 	(1,274	) 	 	 	(4,481	) 	 	 	(4,493	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	54,489	  	 	 	44,888	  	 	 	204,018	  	 	 	133,764	  	
Net loss (income) attributable to the noncontrolling interest	  	 	430	  	 	 	(4,841	) 	 	 	(14,412	) 	 	 	(13,733	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Textainer Group Holdings Limited common shareholders	  	$	54,919	  	 	$	40,047	  	 	$	189,606	  	 	$	120,031	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Textainer Group Holdings Limited common shareholders per share:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	$	1.12	  	 	$	0.83	  	 	$	3.88	  	 	$	2.50	  	
Diluted	  	$	1.10	  	 	$	0.81	  	 	$	3.80	  	 	$	2.43	  	
Weighted average shares outstanding (in thousands):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	  	 	48,931	  	 	 	48,255	  	 	 	48,859	  	 	 	48,108	  	
Diluted	  	 	49,910	  	 	 	49,532	  	 	 	49,839	  	 	 	49,307	  	
 
7

TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
December 31, 2011 and December 31, 2010
(Unaudited)
(All currency expressed in United States dollars in thousands)

 	  	2011	 	 	2010	 	
Assets	  	 	 	 	 	 	 	 	
Current assets:	  	 	 	 	 	 	 	 	
Cash and cash equivalents	  	$	74,816	  	 	$	57,081	  	
Accounts receivable, net of allowance for doubtful accounts of $7,840 and $8,653 in 2011 and 2010, respectively	  	 	86,428	  	 	 	63,511	  	
Net investment in direct financing and sales-type leases	  	 	25,075	  	 	 	19,117	  	
Trading containers	  	 	12,970	  	 	 	404	  	
Containers held for sale	  	 	7,832	  	 	 	2,883	  	
Prepaid expenses	  	 	10,243	  	 	 	8,603	  	
Deferred taxes	  	 	2,443	  	 	 	1,895	  	
 	  	 	 	 	 	 	 	 	
Total current assets	  	 	219,807	  	 	 	153,494	  	
Restricted cash	  	 	45,858	  	 	 	15,034	  	
Containers, net of accumulated depreciation of $377,731 and $361,791 at 2011 and 2010, respectively	  	 	1,903,855	  	 	 	1,437,259	  	
Net investment in direct financing and sales-type leases	  	 	85,121	  	 	 	72,224	  	
Fixed assets, net of accumulated depreciation of $9,027 and $8,820 at 2011 and 2010, respectively	  	 	1,717	  	 	 	1,804	  	
Intangible assets, net of accumulated amortization of $33,340 and $27,441 at 2011 and 2010, respectively	  	 	46,675	  	 	 	60,122	  	
Interest rate swaps	  	 	—  	  	 	 	1,320	  	
Other assets	  	 	7,171	  	 	 	5,950	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	2,310,204	  	 	$	1,747,207	  	
 	  	 	 	 	 	 	 	 	
Liabilities and Equity	  	 	 	 	 	 	 	 	
Current liabilities:	  	 	 	 	 	 	 	 	
Accounts payable	  	$	2,616	  	 	$	6,296	  	
Accrued expenses	  	 	18,491	  	 	 	11,988	  	
Container contracts payable	  	 	25,510	  	 	 	98,731	  	
Deferred revenue	  	 	6,245	  	 	 	6,855	  	
Due to owners, net	  	 	15,812	  	 	 	17,545	  	
Secured debt facility	  	 	41,035	  	 	 	—  	  	
Bonds payable	  	 	91,500	  	 	 	51,500	  	
 	  	 	 	 	 	 	 	 	
Total current liabilities	  	 	201,209	  	 	 	192,915	  	
Revolving credit facility	  	 	133,047	  	 	 	104,000	  	
Secured debt facility	  	 	779,383	  	 	 	558,127	  	
Bonds payable	  	 	464,226	  	 	 	175,570	  	
Deferred revenue	  	 	1,136	  	 	 	2,994	  	
Interest rate swaps	  	 	16,110	  	 	 	13,581	  	
Income tax payable	  	 	22,729	  	 	 	20,821	  	
Deferred taxes	  	 	7,438	  	 	 	8,632	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	1,625,278	  	 	 	1,076,640	  	
 	  	 	 	 	 	 	 	 	
Equity:	  	 	 	 	 	 	 	 	
Textainer Group Holdings Limited shareholders’ equity:	  	 	 	 	 	 	 	 	
Common shares, $0.01 par value. Authorized 140,000,000 shares; issued andoutstanding 48,951,114 and 48,318,058 at 2011 and 2010, respectively	  	 	490	  	 	 	483	  	
Additional paid-in capital	  	 	154,460	  	 	 	181,602	  	
Accumulated other comprehensive loss	  	 	(28	) 	 	 	(52	) 	
Retained earnings	  	 	528,906	  	 	 	401,849	  	
 	  	 	 	 	 	 	 	 	
Total Textainer Group Holdings Limited shareholders’ equity	  	 	683,828	  	 	 	583,882	  	
Noncontrolling interest	  	 	1,098	  	 	 	86,685	  	
 	  	 	 	 	 	 	 	 	
Total equity	  	 	684,926	  	 	 	670,567	  	
 	  	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	2,310,204	  	 	$	1,747,207	  	

8

TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
Years Ended December 31, 2011 and 2010
(Unaudited)
(All currency expressed in United States dollars in thousands)

 	  	Years Ended December 31,	 	
 	  	2011	 	 	2010	 	
Cash flows from operating activities:	  	 	 	 	 	 	 	 	
Net income	  	$	204,018	  	 	$	133,764	  	
 	  	 	 	 	 	 	 	 	
Adjustments to reconcile net income to net cash provided by operating activities:	  	 	 	 	 	 	 	 	
Depreciation expense	  	 	83,177	  	 	 	58,972	  	
Bad debt expense, net	  	 	3,007	  	 	 	145	  	
Unrealized losses on interest rate swaps, net	  	 	3,849	  	 	 	4,021	  	
Amortization of debt issuance costs	  	 	8,101	  	 	 	4,399	  	
Amortization of intangible assets	  	 	6,110	  	 	 	6,544	  	
Amortization of acquired net (below) above-market leases	  	 	(411	) 	 	 	26	  	
Amortization of deferred revenue	  	 	(9,181	) 	 	 	(7,082	) 	
Amortization of unearned income on direct financing and sales-type leases	  	 	(9,055	) 	 	 	(7,853	) 	
Gains on sale of containers, net	  	 	(31,631	) 	 	 	(27,624	) 	
Gain on sale of containers to noncontrolling interest	  	 	(19,773	) 	 	 	—  	  	
Share-based compensation expense	  	 	6,177	  	 	 	5,457	  	
Changes in operating assets and liabilities	  	 	(31,043	) 	 	 	(6,886	) 	
 	  	 	 	 	 	 	 	 	
Total adjustments	  	 	9,327	  	 	 	30,119	  	
 	  	 	 	 	 	 	 	 	
Net cash provided by operating activities	  	 	213,345	  	 	 	163,883	  	
 	  	 	 	 	 	 	 	 	
Cash flows from investing activities:	  	 	 	 	 	 	 	 	
Purchase of containers and fixed assets	  	 	(823,694	) 	 	 	(402,286	) 	
Payment for Textainer Marine Containers Ltd. capital restructuring, net of cash acquired	  	 	(11,783	) 	 	 	—  	  	
Proceeds from sale of containers and fixed assets	  	 	75,311	  	 	 	58,166	  	
Receipt of principal payments on direct financing and sales-type leases	  	 	35,042	  	 	 	41,156	  	
 	  	 	 	 	 	 	 	 	
Net cash used in investing activities	  	 	(725,124	) 	 	 	(302,964	) 	
 	  	 	 	 	 	 	 	 	
Cash flows from financing activities:	  	 	 	 	 	 	 	 	
Proceeds from revolving credit facility	  	 	202,100	  	 	 	152,000	  	
Principal payments on revolving credit facility	  	 	(173,053	) 	 	 	(127,000	) 	
Proceeds from secured debt facility	  	 	627,000	  	 	 	327,000	  	
Principal payments on secured debt facility	  	 	(364,803	) 	 	 	(98,500	) 	
Proceeds from bonds payable	  	 	400,000	  	 	 	—  	  	
Principal payments on bonds payable	  	 	(71,500	) 	 	 	(51,500	) 	
Increase in restricted cash	  	 	(30,824	) 	 	 	(8,448	) 	
Debt issuance costs	  	 	(8,402	) 	 	 	(11,670	) 	
Issuance of common shares upon exercise of share options	  	 	6,065	  	 	 	5,033	  	
Excess tax benefit from share-based payment awards	  	 	3,633	  	 	 	—  	  	
Capital contributions from noncontrolling interest	  	 	1,823	  	 	 	—  	  	
Dividends paid	  	 	(62,549	) 	 	 	(47,631	) 	
 	  	 	 	 	 	 	 	 	
Net cash provided by financing activities	  	 	529,490	  	 	 	139,284	  	
 	  	 	 	 	 	 	 	 	
Effect of exchange rate changes	  	 	24	  	 	 	59	  	
 	  	 	 	 	 	 	 	 	
Net increase in cash and cash equivalents	  	 	17,735	  	 	 	262	  	
Cash and cash equivalents, beginning of the year	  	 	57,081	  	 	 	56,819	  	
 	  	 	 	 	 	 	 	 	
Cash and cash equivalents, end of the year	  	$	74,816	  	 	$	57,081	  	

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TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Reconciliation of GAAP financial measures to non-GAAP financial measures
Three Months and Years Ended December 31, 2011 and 2010
(Unaudited)
(All currency expressed in United States dollars in thousands, except per share amounts)
 
(1)	The following is a reconciliation of certain GAAP measures to non-GAAP financial measures (such items listed in (a) to (d) below and defined as “Non-GAAP Measures”) for the three months and years ended December 31, 2011 and 2010, including:	
 
 	(a)	net income attributable to Textainer Group Holdings Limited common shareholders to EBITDA (EBITDA defined as net income attributable to Textainer Group Holdings Limited common shareholders before interest income and interest expense, realized and unrealized (gains) losses on interest rate swaps and caps, net, income tax (benefit) expense, net (loss) income attributable to the noncontrolling interest (“NCI”), depreciation and amortization expense, gain on sale of containers to NCI and the related impact of reconciling items on net income attributable to the NCI);	
 
 	(b)	net cash provided by operating activities to EBITDA (for the years ended December 31, 2011 and 2010 only);	
 
 	(c)	net income attributable to Textainer Group Holdings Limited common shareholders to Adjusted net income (defined as net income attributable to Textainer Group Holdings Limited common shareholders before unrealized (gains) losses on interest rate swaps, net, gain on sale of containers to NCI and the related impact of reconciling items on net income attributable to the NCI); and	
 
 	(d)	net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share to Adjusted net income per diluted common share (defined as net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share before unrealized (gains) losses on interest rate swaps, net, gain on sale of containers to NCI and the related impact of reconciling items on net income attributable to the NCI).	
Non-GAAP Measures are not financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”) and should not be considered as an alternative to net income, 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 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 Textainer intends to hold its interest rate swaps until maturity and over the life of an interest rate swap held to maturity the unrealized (gains) losses will net to zero. EBITDA is not calculated in the same manner by all companies and, accordingly, may not be an appropriate measure for comparison.
Management also believes that Adjusted net income and Adjusted net income per diluted common share are useful in evaluating our operating performance because unrealized (gains) losses on interest rate swaps, net and gain on sale of containers to NCI are both noncash items and unrealized (gains) losses on interest rate swaps is a non-operating item. We believe Non-GAAP Measures provide useful information on our earnings from ongoing operations. We believe that 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;	
 
 	•	 	EBITDA does not reflect interest expense or cash requirements necessary to service interest or principal payments on our debt;	
 
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 	•	 	Although depreciation is a noncash charge, the assets being depreciated may be replaced in the future, and neither 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.	
 
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 	  	Three Months Ended
December 31,	 	 	Years Ended
December 31,	 	
 	  	2011	 	 	2010	 	 	2011	 	 	2010	 	
 	  	(Dollars in thousands)
(Unaudited)	 	 	(Dollars in thousands)
(Unaudited)	 	
Reconciliation of EBITDA:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Textainer Group Holdings Limited common shareholders	  	$	54,919	  	 	$	40,047	  	 	$	189,606	  	 	$	120,031	  	
Adjustments:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest income	  	 	(12	) 	 	 	(13	) 	 	 	(32	) 	 	 	(27	) 	
Interest expense	  	 	14,649	  	 	 	6,658	  	 	 	44,891	  	 	 	18,151	  	
Realized losses on interest rate swaps and caps, net	  	 	2,654	  	 	 	2,445	  	 	 	10,824	  	 	 	9,844	  	
Unrealized (gains) losses on interest rate swaps, net	  	 	(1,909	) 	 	 	(5,495	) 	 	 	3,849	  	 	 	4,021	  	
Income tax (benefit) expense	  	 	(3,030	) 	 	 	1,274	  	 	 	4,481	  	 	 	4,493	  	
Net (loss) income attributable to the noncontrolling interest	  	 	(430	) 	 	 	4,841	  	 	 	14,412	  	 	 	13,733	  	
Depreciation expense	  	 	21,501	  	 	 	18,050	  	 	 	83,177	  	 	 	58,972	  	
Amortization expense	  	 	1,335	  	 	 	1,756	  	 	 	6,110	  	 	 	6,544	  	
Gain on sale of containers to noncontrolling interest	  	 	—  	  	 	 	—  	  	 	 	(19,773	) 	 	 	—  	  	
Impact of reconciling items on net income attributable to the noncontrolling interest	  	 	(464	) 	 	 	(4,263	) 	 	 	(5,333	) 	 	 	(16,767	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDA	  	$	89,213	  	 	$	65,300	  	 	$	332,212	  	 	$	218,995	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by operating activities	  	 	 	 	 	 	 	 	 	$	213,345	  	 	$	163,883	  	
Adjustments:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Bad debt expense, net	  	 	 	 	 	 	 	 	 	 	(3,007	) 	 	 	(145	) 	
Amortization of debt issuance costs	  	 	 	 	 	 	 	 	 	 	(8,101	) 	 	 	(4,399	) 	
Amortization of acquired below (above)-market leases	  	 	 	 	 	 	 	 	 	 	411	  	 	 	(26	) 	
Amortization of deferred revenue	  	 	 	 	 	 	 	 	 	 	9,181	  	 	 	7,082	  	
Amortization of unearned income on direct financing and sales-type leases	  	 	 	 	 	 	 	 	 	 	9,055	  	 	 	7,853	  	
Gains on sale of containers, net	  	 	 	 	 	 	 	 	 	 	31,631	  	 	 	27,624	  	
Share-based compensation expense	  	 	 	 	 	 	 	 	 	 	(6,177	) 	 	 	(5,457	) 	
Interest income	  	 	 	 	 	 	 	 	 	 	(32	) 	 	 	(27	) 	
Interest expense	  	 	 	 	 	 	 	 	 	 	44,891	  	 	 	18,151	  	
Realized losses on interest rate swaps and caps, net	  	 	 	 	 	 	 	 	 	 	10,824	  	 	 	9,844	  	
Income tax expense	  	 	 	 	 	 	 	 	 	 	4,481	  	 	 	4,493	  	
Changes in operating assets and liabilities	  	 	 	 	 	 	 	 	 	 	31,043	  	 	 	6,886	  	
Impact of reconciling items on net income attributable to the noncontrolling interest	  	 	 	 	 	 	 	 	 	 	(5,333	) 	 	 	(16,767	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDA	  	 	 	 	 	 	 	 	 	$	332,212	  	 	$	218,995	  	

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 	  	Three Months Ended
December 31,	 	 	Years Ended
December 31,	 	
 	  	2011	 	 	2010	 	 	2011	 	 	2010	 	
 	  	(Dollars in thousands)
(Unaudited)	 	 	(Dollars in thousands)
(Unaudited)	 	
Reconciliation of Adjusted net income:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Textainer Group Holdings Limited common shareholders	  	$	54,919	  	 	$	40,047	  	 	$	189,606	  	 	$	120,031	  	
Adjustments:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unrealized (gains) losses on interest rate swaps, net	  	 	(1,909	) 	 	 	(5,495	) 	 	 	3,849	  	 	 	4,021	  	
Gain on sale of containers to noncontrolling interest	  	 	—  	  	 	 	—  	  	 	 	(19,773	) 	 	 	—  	  	
Impact of reconciling items on net income attributable to noncontrolling interest	  	 	(2	) 	 	 	1,149	  	 	 	4,517	  	 	 	(601	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted net income	  	$	53,008	  	 	$	35,701	  	 	$	178,199	  	 	$	123,451	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Adjusted net income per diluted common share:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share	  	$	1.10	  	 	$	0.81	  	 	$	3.80	  	 	$	2.43	  	
Adjustments:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unrealized (gains) losses on interest rate swaps, net	  	 	(0.04	) 	 	 	(0.11	) 	 	 	0.08	  	 	 	0.08	  	
Gain on sale of containers to noncontrolling interest	  	 	—  	  	 	 	—  	  	 	 	(0.39	) 	 	 	—  	  	
Impact of reconciling items on net income attributable to noncontrolling interest	  	 	—  	  	 	 	0.02	  	 	 	0.09	  	 	 	(0.01	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted net income per diluted common share	  	$	1.06	  	 	$	0.72	  	 	$	3.58	  	 	$	2.50	  	

13

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: February 14, 2012

Textainer Group Holdings Limited	
 	
/s/ PHILIP K. BREWER	
Philip K. Brewer	
President and Chief Executive Officer	
 
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