Textainer Group Holdings Limited (NYSE:TGH) (“Textainer”, “the
Company”, “we” and “our”), one of the world’s largest lessors of
intermodal containers, reported first-quarter 2017 results.
Financial and Business Summaries
- Lease rental income increased $0.9
million (or 0.9 percent) from the prior quarter to $107.6
million;
- Container impairments declined $10.3
million (or 73 percent) from the prior quarter to $3.8 million (or
$0.07 per diluted common share) for the quarter;
- Gains on sale of containers, net
increased $0.7 million (or 22 percent) from the prior quarter to
$4.0 million (or $0.07 per diluted common share) for the
quarter;
- New container prices are above $2,200
per CEU, 75% higher than one year ago;
- Used container prices have increased
more than 50% since the low point in August 2016;
- Net loss attributable to Textainer
Group Holdings Limited common shareholders of $7.0 million for the
quarter, or $0.12 per diluted common share, an increase of $6.8
million from the prior quarter;
- Adjusted net loss (1) of $9.1 million
for the quarter, or $0.16 per diluted common share, a decrease of
$4.3 million (or 32 percent) from the prior quarter; and
- Utilization averaged 95.0 percent for
the quarter and is currently at 96.0 percent.
“We saw our first sequential growth in lease revenue in more
than two years. That growth, combined with a quarter-to-quarter
reduction in container impairments and increase in gains on
container sales, is further evidence of the strong improvement that
we are experiencing in our industry. Both new and used container
prices have increased dramatically since the third quarter last
year. Additionally, the lease rates for both new and depot
container lease-outs have increased even faster than container
prices indicating material improvement in lease yields. Our
utilization continues to improve as we lease out depot inventory
and containers recovered from Hanjin,” stated Philip K. Brewer,
President and Chief Executive Officer of Textainer Group Holdings
Limited.
“With respect to the bankruptcy of Hanjin, 94% of our containers
have been recovered or are in the final stages of recovery
negotiation. The quantity of containers recovered far exceeds what
we expected at the time of Hanjin’s bankruptcy given the
disorganized nature of the default. We had approximately 114,000
containers on lease to Hanjin, or 6.4% of our total fleet. We have
incurred significant upfront costs for the recovery and repair and
repositioning of containers formerly leased to Hanjin, in addition
to unpaid accounts receivable and revenue lost during the recovery
process. We have $80 million of insurance after a $5 million
deductible to cover the majority of our Hanjin losses. We made an
initial insurance claim in April 2017 and expect to receive initial
payments by the end of May 2017. We believe our final claim will
exceed our insurance coverage by $10 to $20 million and that final
resolution of the claim will occur later in 2017. The reactivation
of recovered Hanjin containers and settlement of the insurance
claim will bolster our financial position and contribute to
improved results,” added Mr. Brewer.
“During the quarter, we amended certain covenants of our bank
financing facilities. Additionally, we set up a new facility to
retire existing asset backed notes and are now evaluating
opportunities to expand our financing sources,” concluded Mr.
Brewer.
Key Financial Information (in thousands except for per share
and TEU amounts):
Q1 QTD2017
Q4 QTD 2016(a)
Q1 QTD 2016(b)
Lease rental income $ 107,617 $ 106,709 $ 122,348 Total revenues $
116,687 $ 120,200 $ 128,620 Income from operations $ 20,039 $ 9,783
$ 29,374
Net loss attributable to Textainer Group
Holdings Limited common shareholders
$ (6,974 ) $ (132 ) $ (3,737 )
Net loss attributable to Textainer Group
Holdings Limited common shareholders per diluted common share
$ (0.12 ) $ - $ (0.07 ) Adjusted net (loss) income (1) $ (9,067 ) $
(13,395 ) $ 6,022 Adjusted net (loss) income per diluted common
share (1) $ (0.16 ) $ (0.24 ) $ 0.11 Adjusted EBITDA (1) $ 82,112 $
86,403 $ 96,235 Average fleet utilization 95.0 % 94.3 % 94.6 %
Total fleet size at end of period (TEU) 3,054,198 3,142,556
3,164,719 Owned percentage of total fleet at end of period 81.3 %
81.0 % 80.6 % (a) Certain amounts for the period ended
December 31, 2016 have been restated for immaterial corrections of
identified errors to reverse gains on sale of containers, net that
were deemed uncollectible and to properly account for lease
concessions. (b) Certain amounts for the period ended March 31,
2016 have been restated for immaterial corrections of identified
errors pertaining to the classification of certain leases and to
reverse gains on sale of containers, net that were deemed
uncollectible.
“Adjusted net (loss) income” and “adjusted EBITDA” are Non-GAAP
Measures that are reconciled to GAAP measures in footnote 1.
“Adjusted net (loss) income” is defined as net (loss) income
attributable to Textainer Group Holdings Limited common
shareholders before charges to unrealized (gains) losses on
interest rate swaps, collars and caps, net and the related impact
of reconciling items on income tax expense and net loss
attributable to the non-controlling interests (“NCI”). “Adjusted
EBITDA” is defined as net loss attributable to Textainer Group
Holdings Limited common shareholders before interest income and
expense, realized and unrealized (gains) losses on interest rate
swaps, collars and caps, net, income tax expense, net loss
attributable to the NCI, depreciation expense, container
impairment, amortization expense and the related impact of
reconciling items on net loss attributable to the NCI. Footnote 1
provides certain qualifications and limitations on the use of
Non-GAAP Measures.
First-Quarter Results
Lease rental income decreased $14.7 million (or 12.0 percent)
from the prior year comparable period. The decrease was due to a
decrease in average rental rates, lower utilization and lost
revenue from the Hanjin bankruptcy, partially offset by an increase
in our owned fleet size. Direct container expense increased $5.0
million (or 34.4 percent) from the prior year quarter primarily due
to repositioning expense on Hanjin containers.
In addition to the above-mentioned factors, Textainer’s first
quarter results were adversely impacted by an increase of $8.0
million (or 15.2 percent) in depreciation expense primarily due to
a decrease in residual values effective July 1, 2016 and an
increase in our owned fleet size, partially offset by an increase
in useful lives also effective July 1, 2016 and lower new container
prices during 2016. Interest expense, including realized losses on
interest rate swaps, collars and caps, net, increased $7.8 million
(or 34.8 percent) from the prior year quarter primarily due to an
increase in effective interest rates of 1.0 percentage point mainly
resulting from $2.8 million higher amortization of prepaid debt
issuance cost and a $6.1 million increase in interest margin of
several of our recently amended debt facilities.
On the positive side, container impairments decreased $13.5
million (or 78.0 percent) from the prior year quarter primarily due
to a decrease in the volume of containers designated for disposal,
an increase in used container prices and a $4.7 million reversal of
previous recorded impairments on containers held for sale due to
rising used container prices during the first quarter 2017. Gains
on sale of containers, net increased $3.0 million (or 295 percent)
from the prior year quarter primarily due to an increase in average
sales proceeds per unit and an increase in sales volume.
Outlook
“We believe the positive trends apparent in the first quarter
will continue over the summer. The quarter-to-quarter improvement
in lease revenue should continue due to higher container lease
rates and revenue from the reactivation of containers formerly
leased to Hanjin. Additionally, we expect the reduction in
container impairments and increase in gains on container sales to
continue due to the higher new and used container prices, high
utilization and tight container supply. The world’s container fleet
barely grew last year with total new dry freight container
production of 1.8 million TEU and disposals of 1.5 million TEU.
Although container production picked up during the first quarter,
un-booked inventory at factories is approximately 500,000 TEU, well
below the level at this time last year,” stated Mr. Brewer.
“New container prices have declined slightly in the preceding
weeks consistent with declines in steel prices, but still remain
over $2,200 per CEU, 75% higher than the lowest level last year.
New container prices at this level combined with fewer containers
being disposed due to high utilization suggests continued support
for the higher used container prices we are seeing.”
“The outlook for the shipping lines is also improving. Freight
rates are much higher than they were one year ago and the latest
indications are that spot rates are firming up on deep sea trades.
The commencement of operations of the three major alliances at the
beginning of April 2017 and the relative balance between new vessel
deliveries and scrapping of old vessels are additional positive
signs.”
“We believe the limited inventory of new and depot containers
will continue to support lease rates at today’s attractive levels.
In the coming quarters, we expect to receive the proceeds from our
Hanjin insurance claim and to reduce expenditures on container
recovery and repairs. We will also benefit from reduced storage
costs as utilization rises, reduced impairments due to higher sale
prices and increased gains on sale as we sell already impaired
containers,” added Mr. Brewer. “However, our return to
profitability will be slowed by increased depreciation expense due
to the July 2016 changes to our depreciation policy, an increase in
our borrowing costs and the fact that the full impact of new
container rental rates will build over time as our fleet reprices
and we put new containers on-lease. The important point is that the
improvements we are experiencing in our industry are not only
continuing but seem likely to remain for some time,” concluded Mr.
Brewer.
Investors’ Conference Call and Webcast
Textainer will hold a conference call and a Webcast at 11:00 am
EDT on Thursday, May 4, 2017 to discuss Textainer’s first
quarter 2017 results. An archive of the Webcast will be available
one hour after the live call through May 3, 2018. For callers
in the U.S. the dial-in number for the conference call is
1-888-895-5271; for callers outside the U.S. the dial-in number for
the conference call is 1-847-619-6547. The participant passcode for
both dial-in numbers is 44748408. To access the live Webcast or
archive, please visit 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 a total of
2.0 million containers representing 3.1 million TEU in
our owned and managed fleet. We lease containers to approximately
320 customers, including all of the world’s leading international
shipping lines, and other lessees. Our fleet consists of standard
dry freight, dry freight specials, and refrigerated intermodal
containers. We also lease tank containers through our relationship
with Trifleet Leasing and are the primary 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 lease fleet, we buy older
containers from our shipping line customers for trading and resale.
We sold an average of more than 120,000 containers per year for the
last five years to more than 1,400 customers making us one of the
largest sellers of used containers. Textainer operates via a
network of 14 offices and approximately 500 depots worldwide.
Important Cautionary Information Regarding Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of U.S. securities laws. Forward-looking statements
include statements that are not statements of historical facts and
include, without limitation, statements regarding: (i) Textainer’s
expectation that it will receive initial insurance payments of its
Hanjin claim by the end of May 2017; (ii) Textainer’s belief that
its final claim on Hanjin will exceed its insurance coverage by $10
to $20 million and that final resolution of the claim will occur
later in 2017; (iii) Textainer’s belief that the reactivation of
recovered Hanjin containers and settlement of the insurance claim
will bolster its financial position and contribute to improved
results; (iv) Textainer’s belief that trends apparent in the first
quarter will continue over the summer; (v) Textainer’s belief that
the quarter-to-quarter improvement in lease revenue should continue
due to higher container lease rates and revenue from the
reactivation of containers formerly leased to Hanjin; (vi)
Textainer’s expectation that the reduction in container impairments
and increase in gains on container sales to continue due to the
higher new and used container prices, higher utilization and tight
container supply; (vii) Textainer’s belief that new container
prices at above $2,200 per CEU, 75% higher than the lowest level
last year, combined with fewer container being disposed due to high
utilization suggests continued support for the higher used
container prices experienced in the first quarter 2017; (viii)
Textainer’s belief that the limited inventory of new and depot
containers will continue to support lease rates at today’s
attractive level; (ix) Textainer’s expectation that it will receive
the proceeds from its Hanjin insurance claim and reduce
expenditures on container recovery and repairs in the coming
quarters; (x) Textainer’s belief that it will benefit from reduced
storage costs as utilization rises, reduced impairments due to
higher sales prices and increased gains on sale as it sells already
impaired containers; (xi) Textainer’s belief that its return to
profitability will be slowed by increased depreciation expense due
to the July 2016 changes to its depreciation policy, an increase in
its borrowing costs and the fact that the full impact of new
container rental rates will build over time as its fleet reprices
and it puts new containers on-lease; and (xii) Textainer’s belief
that the improvements it is experiencing in its industry are not
only continuing but will likely remain for some time. 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 faces
extensive competition in the container leasing industry which tends
to depress returns; 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 3 “Key
Information— Risk Factors” in Textainer’s Annual Report on Form
20-F filed with the Securities and Exchange Commission on
March 27, 2017.
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 AND
SUBSIDIARIES
Condensed Consolidated Statements of
Comprehensive Loss
Three Months ended March 31, 2017 and
2016
(Unaudited)
(All currency expressed in United States
dollars in thousands, except per share amounts)
Three Months Ended March 31,
2017 2016 (1) Revenues:
Lease rental income $ 107,617 $ 122,348 Management
fees 3,222 3,344 Trading container sales proceeds 1,800 1,902 Gains
on sale of containers, net 4,048 1,026 Total revenues
116,687 128,620 Operating expenses: Direct container
expense 19,659 14,629 Cost of trading containers sold 1,289 2,644
Depreciation expense 60,608 52,611 Container impairment 3,811
17,292 Amortization expense 948 1,374 General and administrative
expense 7,345 7,166 Short-term incentive compensation expense 1,360
773 Long-term incentive compensation expense 1,376 1,608 Bad debt
expense, net 252 1,149 Total operating expenses
96,648 99,246 Income from operations 20,039
29,374 Other (expense) income: Interest expense (28,913 )
(19,965 ) Interest income 128 76
Realized losses on interest rate swaps,
collars and caps, net
(1,162 ) (2,353 )
Unrealized gains (losses) on interest rate
swaps, collars and caps, net
2,294 (11,177 ) Other, net (14 ) (8 ) Net other
expense (27,667 ) (33,427 )
Loss before income tax and noncontrolling
interests
(7,628 ) (4,053 ) Income tax expense (447 ) (20 ) Net
loss (8,075 ) (4,073 )
Less: Net loss attributable to the
noncontrolling interests
1,101 336
Net loss attributable to Textainer Group
Holdings Limited common shareholders
$ (6,974 ) $ (3,737 )
Net loss attributable to Textainer Group
Holdings Limited common shareholders per share:
Basic $ (0.12 ) $ (0.07 ) Diluted $ (0.12 ) $ (0.07 ) Weighted
average shares outstanding (in thousands): Basic 56,790 56,570
Diluted 56,790 56,570 Other comprehensive loss: Foreign currency
translation adjustments 32 (113 ) Comprehensive loss
(8,043 ) (4,186 )
Comprehensive loss attributable to the
noncontrolling interests
1,101 336
Comprehensive loss attributable to
Textainer Group Holdings Limited common shareholders
$ (6,942 ) $ (3,850 ) (1) Certain amounts for the period ended
March 31, 2016 have been restated for immaterial corrections of
identified errors pertaining to the classification of certain
leases and to reverse gains on sale of containers, net that were
deemed uncollectible.
TEXTAINER GROUP HOLDINGS LIMITED AND
SUBSIDIARIES
Condensed Consolidated Balance Sheets
March 31, 2017 and December 31, 2016
(Unaudited)
(All currency expressed in United States
dollars in thousands)
2017 2016 (1) Assets Current assets:
Cash and cash equivalents $ 94,018 $ 84,045
Accounts receivable, net of allowance for
doubtful accounts of $31,875 and $31,844 in 2017 and 2016,
respectively
69,896 76,547 Net investment in direct financing and sales-type
leases 61,629 64,951 Trading containers 3,673 4,363 Containers held
for sale 32,689 25,513 Prepaid expenses and other current assets
14,124 13,584 Insurance receivable 63,001 44,785
Due from affiliates, net
1,064 869 Total current assets 340,094 314,657
Restricted cash 68,835 58,078
Containers, net of accumulated
depreciation of $1,035,770 and $990,784 at 2017 and 2016,
respectively
3,617,954 3,717,542 Net investment in direct financing and
sales-type leases 161,411 172,283
Fixed assets, net of accumulated
depreciation of $10,309 and $10,136 at 2017 and 2016,
respectively
1,814 1,993
Intangible assets, net of accumulated
amortization of $41,710 and $40,762 at 2017 and 2016,
respectively
14,249 15,197 Interest rate swaps, collars and caps 6,283 4,816
Deferred taxes 1,385 1,385 Other assets 7,517 8,075
Total assets $ 4,219,542 $ 4,294,026
Liabilities and Equity
Current liabilities: Accounts payable $ 11,686 $ 12,060 Accrued
expenses 15,803 9,721 Container contracts payable 4,660 11,990
Other liabilities 257 265 Due to owners, net 14,297 18,132 Credit
facility 30,078 31,822 Secured debt facility 86,413 83,518 Term
loan 30,407 30,771 Bonds payable 419,729 58,970 Total
current liabilities 613,330 257,249 Credit facilities 1,059,396
1,085,196 Secured debt facilities 997,357 1,008,607 Term loan
353,222 363,961 Bonds payable - 375,452 Interest rate swaps,
collars and caps 377 1,204 Income tax payable 8,663 9,076 Deferred
taxes 6,657 6,237 Other liabilities 2,200 2,259 Total
liabilities 3,041,202 3,109,241 Equity: Textainer
Group Holdings Limited shareholders’ equity:
Common shares, $0.01 par value. Authorized
140,000,000 shares; 57,424,309 shares issued and 56,794,309 shares
outstanding at 2017; 57,417,119 shares issued and 56,787,119 shares
outstanding at 2016
575 575 Additional paid-in capital 392,377 390,780 Treasury shares,
at cost, 630,000 shares (9,149 ) (9,149 ) Accumulated other
comprehensive income (484 ) (516 ) Retained earnings 737,263
744,236 Total Textainer Group Holdings Limited shareholders’
equity 1,120,582 1,125,926 Noncontrolling interest 57,758
58,859 Total equity 1,178,340 1,184,785 Total
liabilities and equity $ 4,219,542 $ 4,294,026 (1) Certain amounts
as of December 31, 2016 have been restated for immaterial
corrections of identified errors to reverse gains on sale of
containers, net that were deemed uncollectible and to properly
account for lease concessions.
TEXTAINER
GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Condensed Consolidated Statements of Cash
Flows
Three months ended March 31, 2017 and
2016
(Unaudited)
(All currency expressed in United States
dollars in thousands)
2017 2016 (1) Cash flows from operating
activities: Net loss $ (8,075 ) $ (4,073 ) Adjustments to reconcile
net loss to net cash provided by operating activities: Depreciation
expense 60,608 52,611 Container impairment 3,811 17,292 Bad debt
expense, net 252 1,149 Unrealized (gains) losses on interest rate
swaps, collars and caps, net (2,294 ) 11,177 Amortization of debt
issuance costs and accretion of bond discount 4,639 1,886
Amortization of intangible assets 948 1,374 Gains on sale of
containers, net (4,048 ) (1,026 ) Share-based compensation expense
1,597 1,763 Changes in operating assets and liabilities
(10,743 ) (11,271 ) Total adjustments 54,770
74,955 Net cash provided by operating activities 46,695
70,882 Cash flows from investing activities: Purchase of
containers and fixed assets (11,487 ) (144,699 ) Proceeds from sale
of containers and fixed assets 34,330 32,291 Receipt of payments on
direct financing and sales-type leases, net of income earned
17,616 22,162 Net cash provided by (used in) investing
activities 40,459 (90,246 ) Cash flows from financing
activities: Proceeds from credit facilities - 110,000 Principal
payments on credit facilities (24,583 ) (17,857 ) Proceeds from
secured debt facilities 30,000 - Principal payments on secured debt
facilities (39,006 ) (32,800 ) Principal payments on term loan
(10,329 ) (9,900 ) Principal payments on bonds payable (15,058 )
(15,058 ) Increase in restricted cash (10,757 ) (1,266 ) Debt
issuance costs (7,480 ) — Net tax benefit from share-based
compensation awards — (109 ) Dividends paid to Textainer Group
Holdings Limited shareholders — (13,481 ) Net cash
used in (provided by) financing activities (77,213 )
19,529 Effect of exchange rate changes 32 (113 ) Net
increase in cash and cash equivalents 9,973 52 Cash and cash
equivalents, beginning of the year 84,045 115,594
Cash and cash equivalents, end of the period $ 94,018 $ 115,646 (1)
Certain amounts for the period ended March 31, 2016 have been
restated for immaterial corrections of identified errors pertaining
to the classification of certain leases and to reverse gains on
sale of containers, net that were deemed uncollectible.
TEXTAINER GROUP HOLDINGS LIMITED AND
SUBSIDIARIES
Reconciliation of GAAP financial measures to non-GAAP financial
measures Three Months Ended March 31, 2017 and 2016 (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 ended March 31, 2017 and 2016, including: (a) net
loss attributable to Textainer Group Holdings Limited common
shareholders to adjusted EBITDA (Adjusted EBITDA defined as net
loss attributable to Textainer Group Holdings Limited common
shareholders before interest income and expense, realized and
unrealized (gains) losses on interest rate swaps, collars and caps,
net, income tax expense, net loss attributable to the
noncontrolling interests (“NCI”), depreciation expense, container
impairment, amortization expense and the related impact of
reconciling items on net loss attributable to the NCI); (b)
net cash provided by operating activities to Adjusted EBITDA;
(c) net loss attributable to Textainer Group Holdings
Limited common shareholders to adjusted net (loss) income (defined
as net loss attributable to Textainer Group Holdings Limited common
shareholders before unrealized (gains) losses on interest rate
swaps, collars and caps, net, the related impact of reconciling
items on income tax expense and net loss attributable to the NCI);
and (d) net loss attributable to Textainer Group Holdings
Limited common shareholders per diluted common share to adjusted
net loss per diluted common share (defined as net loss attributable
to Textainer Group Holdings Limited common shareholders per diluted
common share before unrealized (gains) losses on interest rate
swaps, collars and caps, net, the related impact of reconciling
items on income tax expense and net loss 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
loss, 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 (loss) income may be a useful performance measure
because Textainer intends to hold its interest rate swaps, collars
and caps until maturity and over the life of an interest rate swap,
collar or cap the unrealized (gains) losses will net to zero.
Adjusted 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 (loss) income per diluted common share are useful in evaluating
our operating performance because unrealized (gains) losses 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 (loss) income or adjusted net (loss) 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 March 31,
2017 2016 (1) (Dollars in
thousands) (Unaudited) Reconciliation of adjusted net
loss:
Net loss attributable to Textainer Group
Holdings Limited common shareholders
$ (6,974 ) $ (3,737 ) Adjustments:
Unrealized (gains) losses on interest rate
swaps, collars and caps, net
(2,294 ) 11,177
Impact of reconciling items on income tax
expense
38 (205 )
Impact of reconciling items on net loss
attributable to the noncontrolling interests
163 (1,213 )
Adjusted net loss (income) $
(9,067 ) $ 6,022
Reconciliation of adjusted net (loss)
income per diluted common share:
Net loss attributable to Textainer Group
Holdings Limited common shareholders per diluted common share
$ (0.12 ) $ (0.07 ) Adjustments: Unrealized (gains) losses on
interest rate swaps, collars and caps, net (0.04 ) 0.20 Impact of
reconciling items on income tax expense — —
Impact of reconciling items on net loss
attributable to the noncontrolling interests
— (0.02 )
Adjusted net (loss) income per diluted
common share $ (0.16 ) $ 0.11 (1) Certain amounts for the
period ended March 31, 2016 have been restated for immaterial
corrections of identified errors pertaining to the classification
of certain leases and to reverse gains on sale of containers, net
that were deemed uncollectible.
Three Months Ended March 31, 2017
2016 (1) (Dollars in thousands)
(Unaudited)
Reconciliation of adjusted
EBITDA:
Net loss attributable to Textainer Group
Holdings Limited common shareholders
$ (6,974 ) $ (3,737 ) Adjustments: Interest income (128 ) (76 )
Interest expense 28,913 19,965
Realized losses on interest rate swaps,
collars and caps, net
1,162 2,353
Unrealized (gains) losses on interest rate
swaps, collars and caps, net
(2,294 ) 11,177 Income tax expense 447 20 Net loss attributable to
the noncontrolling interests (1,101 ) (336 ) Depreciation expense
60,608 52,611 Container impairment 3,811 17,292 Amortization
expense 948 1,374
Impact of reconciling items on net loss
attributable to the noncontrolling interests
(3,280 ) (4,408 ) Adjusted EBITDA $ 82,112 $ 96,235
Net cash provided by operating activities $ 46,695 $ 70,882
Adjustments: Bad debt expense, net (252 ) (1,149 )
Amortization of debt issuance costs and
accretion of bond discount
(4,639 ) (1,886 ) Gains on sale of containers, net 4,048 1,026
Share-based compensation expense (1,597 ) (1,763 ) Interest income
(128 ) (76 ) Interest expense 28,913 19,965
Realized losses on interest rate swaps,
collars and caps, net
1,162 2,353 Income tax expense 447 20 Changes in operating assets
and liabilities 10,743 11,271
Impact of reconciling items on net loss
attributable to the noncontrolling interests
(3,280 ) (4,408 ) Adjusted EBITDA $ 82,112 $ 96,235
(1) Certain amounts for the period ended March 31, 2016 have been
restated for immaterial corrections of identified errors pertaining
to the classification of certain leases and to reverse gains on
sale of containers, net that were deemed uncollectible.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170504005389/en/
Textainer Group Holdings LimitedHilliard C. Terry, III, +1
415-658-8214Executive Vice President and Chief Financial
Officerir@textainer.com
Textainer (NYSE:TGH)
Historical Stock Chart
From Mar 2024 to Apr 2024
Textainer (NYSE:TGH)
Historical Stock Chart
From Apr 2023 to Apr 2024