Textainer Group Holdings Limited (NYSE: TGH) (“Textainer”, “the
Company”, “we” and “our”), one of the world’s largest lessors of
intermodal containers, today reported financial results for the
third quarter ended September 30, 2018.
Key Financial and Business Highlights
- Total revenues of $149.4 million for
the quarter, a $23.8 million increase (or 19.0%) from the third
quarter of 2017, driven by strong lease-out and resale
activity;
- Lease rental income of $129.8 million
for the quarter, an increase of $17.6 million (or 15.7%) from the
third quarter of 2017 and $8.3 million (or 6.8%) from the second
quarter of 2018;
- Adjusted EBITDA(1) of $111.3 million
for the quarter, an improvement of $10.7 million (or 10.7%) from
the third quarter of 2017 and $2.2 million (or 2.0%) from the
second quarter of 2018;
- Recorded container impairments totaling
$16.8 million resulting mostly from two defaulted lessees and
additionally the move to disposal of economically unleasable
containers. The two defaulted lessees also caused additional
container recovery costs of $2.5 million recorded in Direct
container expense;
- Net income of $1.9 million for the
quarter, or $0.03 per diluted common share, a decrease of $16.6
million from the third quarter of 2017 and $15.6 million from the
second quarter of 2018;
- Adjusted net income(1) of $4.8 million
for the quarter, or $0.08 per diluted common share, a decrease of
$13.8 million from the third quarter of 2017 and $12.9 million from
the second quarter of 2018. Excluding the impact of impairment and
recovery costs for the two defaulted lessees, as well as the
write-down of the economically unleasable containers described
above, adjusted net income for the quarter would have totaled $22.1
million, or $0.39 per diluted common share;
- Utilization averaged 98.0% for the
quarter and is currently at 98.6%, an improvement of 130 basis
points from the average in the third quarter of 2017;
- Continued growth with container
investments of $820 million delivered year-to-date, including over
$290 million of new production received during the third quarter;
and
- Effective September 26, 2018, we
amended our revolving credit facility to increase its size to $1.5
billion, lower its pricing by 50 basis points, and extend the term
to five years.
“Our third quarter performance reflects the continued positive
results of our fleet growth and high utilization rate. Lease rental
income increased $8.3 million from the previous quarter, marking
the eighth-consecutive quarter of lease rental income growth. The
average yield of our fleet continued to improve as we locked-in
more long-term leases at rates higher than our current fleet
average,” stated Olivier Ghesquiere, President and Chief Executive
Officer of Textainer Group Holdings Limited.
“However, our net income was negatively affected by impairment
charges and recovery costs for two defaulting regional shipping
lines in Asia. We have now recovered the majority of containers
worth recovering and believe the impact of these defaults are
mostly behind us. In addition, we decided to dispose of
economically unleasable containers which resulted in an impairment
write-down during the quarter. Their disposal will help save on
storage cost while taking advantage of the current positive resale
market to monetize their remaining value.
“We saw strong demand ahead of the Golden Week with 165,000 TEU
picked up during the quarter, which included 137,000 TEU of new
production. These new containers went on operating leases with an
average minimum contractual term in excess of six years and
favorable return schedules. Drop-off activity was limited,
resulting in a quarterly lease-out to turn-in ratio of 2.5 to 1.
Given the strong demand environment, industry-wide factory
inventory was further reduced to 600,000 TEU.”
Key Financial Information (in thousands except for per share
and TEU amounts):
QTD YTD Q3 2018 Q3
2017 Q3 2018 Q3 2017 Lease rental income $
129,834 $ 112,195 $ 371,639 $ 328,591 Total revenues $ 149,438 $
125,600 $ 423,378 $ 361,534 Income from operations $ 37,156 $
45,005 $ 138,092 $ 98,556
Net income attributable to Textainer Group
Holdings Limited common shareholders
$ 1,913 $ 18,481 $ 38,137 $ 2,154
Net income attributable to Textainer Group
Holdings Limited common shareholders per diluted common share
$ 0.03 $ 0.32 $ 0.66 $ 0.04 Adjusted net income (1) $ 4,815 $
18,635 $ 39,554 $ 8,373 Adjusted net income per diluted common
share (1) $ 0.08 $ 0.33 $ 0.69 $ 0.15 Adjusted EBITDA (1) $ 111,329
$ 100,606 $ 325,722 $ 273,928 Average fleet utilization 98.0 % 96.7
% 97.9 % 96.0 % Total fleet size at end of period (TEU) 3,451,293
3,202,140 Owned percentage of total fleet at end of period 80.9 %
77.2 %
(1) “Adjusted net income” and
“adjusted EBITDA” are Non-GAAP Measures that are reconciled to GAAP
measures in section “Reconciliation of GAAP financial measures to
non-GAAP financial measures” below. “Adjusted net income” is
defined as net income attributable to Textainer Group Holdings
Limited common shareholders before charges to write-off of
unamortized deferred debt issuance costs and bond discounts,
unrealized gains on interest rate swaps, collars and caps, net,
costs associated with departing senior executives and the related
impact of reconciling items on income tax expense and net income
attributable to the non-controlling interests (“NCI”). “Adjusted
EBITDA” is defined as net income attributable to Textainer Group
Holdings Limited common shareholders before interest income and
expense, write-off of unamortized deferred debt issuance costs and
bond discounts, realized (gains) losses on interest rate swaps,
collars and caps, net, unrealized gains on interest rate swaps,
collars and caps, net, costs associated with departing senior
executives, income tax expense, net income attributable to the NCI,
depreciation expense, container impairment, amortization expense
and the related impact of reconciling items on net income
attributable to the NCI. Section “Reconciliation of GAAP financial
measures to non-GAAP financial measures” provides certain
qualifications and limitations on the use of Non-GAAP Measures.
Third-Quarter Results
Lease rental income increased $17.6 million from the third
quarter of 2017 and $8.3 million from the second quarter of 2018.
These increases were due to higher utilization, larger fleet size
and increases in the average rental rates of the fleet.
Direct container expense increased $5.5 million, compared to the
third quarter of 2017, mostly due to $2.5 million in container
recovery cost incurred for two lessees that became insolvent in
2018 and higher repositioning expense, partially offset by lower
storage costs.
Container impairment was $16.8 million for the quarter,
consisting primarily of a $8.1 million write-off for the estimated
unrecoverable containers held by two defaulted lessees and $6.9
million in impairments to write down the value of unleasable
containers moved to disposal. These unleasable containers are
primarily reefer units, many of them recovered from Hanjin, for
which there are no near-term lease opportunities due to various
technical and commercial factors.
Depreciation expense increased $5.1 million from the third
quarter of 2017 and $2.7 million from the second quarter of 2018,
primarily due to fleet growth.
In line with our policy of assessing residual values of our
containers, we increased the estimated future residual value of our
40’high cube dry containers from $1,350 to $1,400 and decreased the
estimated future residual value of our 40’ high cube refrigerated
containers from $4,500 to $4,000, effective July 1, 2018. These
changes decreased depreciation expense by $0.1 million during this
current quarter and are not expected to have a significant impact
in upcoming quarters. The revised residual values better reflect
our long-term view of used container prices for these container
types.
Long-term incentive compensation expense was $3.2 million for
the quarter and includes expenses of $1.9 million associated with
the acceleration of stock compensation from departing senior
executive personnel.
Interest expense increased $5.6 million, compared to the third
quarter of 2017, mostly due to higher borrowing costs resulting
from a higher ratio of fixed rate debt, a higher average debt
balance, and higher interest rates. Realized gains on interest rate
swaps, collars and caps, net, increased $1.1 million, compared to
the third quarter 2017 due to the increase in interest rates.
Outlook
“Following the very strong lease out activity of the third
quarter, we now expect to see restrained demand until the
traditional year-end ramp-up leading into Lunar New Year. Given
strong competition by manufacturers and a depreciating renminbi,
new container prices have recently decreased to about $1,900 per
CEU. Other indicators remain positive, including low depot
inventory, low turn-in bookings, and stable resale prices supported
by the limited supply of containers available for sale,” continued
Mr. Ghesquiere.
“Looking ahead at 2019, the IMF recently revised their 2019
global growth forecast slightly from 3.9% to 3.7% on concerns of
unresolved trade disputes. We continue to monitor these
developments closely but have not yet seen any material negative
impact on container demand.
“We are concentrating on optimizing the profitability of the
Company with a particular focus on our yields and transaction
terms. In this respect, we intend to continue to strengthen our
business operations and financing capacity to meet our customer
needs and position ourselves to seize profitable market
opportunities as they may arise,” concluded Mr. Ghesquiere.
Conference Call and Webcast
A conference call to discuss the financial results for the third
quarter of 2018 will be held at 11:00 am EDT on Friday,
November 2, 2018. The dial-in number for the conference call
is 1-888-771-4371 (U.S.) and 1-847-585-4405 (outside the U.S.). The
participant passcode for both dial-in numbers is 47731452. The call
may also be accessed via webcast on Textainer’s Investor Relations
website at http://investor.textainer.com. A webcast replay will be
available one hour after the live call through November 1,
2019.
About Textainer Group Holdings Limited
Textainer has operated since 1979 and is one of the world’s
largest lessors of intermodal containers with approximately
3.5 million TEU in our owned and managed fleet. We lease
containers to approximately 250 customers, including all of the
world’s leading international shipping lines, and other lessees.
Our fleet consists of standard dry freight, 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 130,000
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 more than 500
independent 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) the impact
of the two defaulted lessees are mostly behind us; (ii) the
disposal of economically unleasable equipment in the third quarter
will reduce future storage; (iii) we expect to see slower demand
until the traditional year-end ramp-up leading into Lunar New Year;
(iv) our revised residual values better reflect long-term views of
used container prices for these container types. 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 14, 2018.
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 Income (Loss)
Three and Nine Months Ended
September 30, 2018 and 2017
(Unaudited)
(All currency expressed in United States
dollars in thousands, except per share amounts)
Three Months Ended September 30, Nine Months Ended
September 30, 2018 2017 2018
2017 Revenues: Lease rental
income $ 129,834 $ 112,195 $ 371,639 $ 328,591 Management fees
4,031 4,193 12,578 10,949 Trading container sales proceeds 7,123
1,237 12,681 4,089 Gain on sale of containers, net 8,450
7,975 26,480 17,905 Total revenues
149,438 125,600 423,378 361,534 Operating
expenses: Direct container expense 16,534 11,026 43,684 45,574 Cost
of trading containers sold 5,319 841 10,535 2,846 Depreciation
expense 60,444 55,354 174,571 175,606 Container impairment 16,784
1,956 18,554 6,481 Amortization expense 439 1,151 3,219 3,047
General and administrative expense 8,453 7,232 25,172 21,886
Short-term incentive compensation expense 864 805 2,591 2,167
Long-term incentive compensation expense 3,170 1,473 5,902 4,254
Bad debt expense, net 275 757 1,058
1,117 Total operating expenses 112,282 80,595
285,286 262,978 Income from operations 37,156
45,005 138,092 98,556 Other (expense) income:
Interest expense (35,706 ) (30,069 ) (101,838 ) (88,386 )
Write-off of unamortized deferred debt
issuance costs and bond discounts
(881 ) (238 ) (881 ) (7,466 ) Interest income 446 191 1,153 408
Realized gains (losses) on interest rate
swaps, collars and caps, net
1,268 154 3,951 (1,487 )
Unrealized gains on interest rate swaps,
collars and caps, net
22 151 2,248 1,213
Other, net
(1 ) (4 ) (1 ) (1 )
Net other expense
(34,852 ) (29,815 ) (95,368 ) (95,719 )
Income before income tax and
noncontrolling interests
2,304 15,190 42,724 2,837
Income tax benefit (expense), net
224 4,783 (1,262 ) (431 ) Net income
2,528 19,973 41,462 2,406
Less: Net income attributable to the
noncontrolling interests
(615 ) (1,492 ) (3,325 ) (252 )
Net income attributable to Textainer Group
Holdings Limited common shareholders
$ 1,913 $ 18,481 $ 38,137 $ 2,154
Net income attributable to Textainer Group
Holdings Limited common shareholders per share:
Basic $ 0.03 $ 0.33 $ 0.67 $ 0.04 Diluted $ 0.03 $ 0.32 $ 0.66 $
0.04 Weighted average shares outstanding (in thousands): Basic
57,212 56,823 57,144 56,806 Diluted 57,426 57,180 57,438 57,042
Other comprehensive income:
Foreign currency translation
adjustments
(93 ) 53 (82 ) 149 Comprehensive income
2,435 20,026 41,380 2,555
Comprehensive income attributable to the
noncontrolling interests
(615 ) (1,492 ) (3,325 ) (252 )
Comprehensive income attributable to
Textainer Group Holdings Limited common shareholders
$ 1,820 $ 18,534 $ 38,055 $ 2,303
TEXTAINER GROUP HOLDINGS LIMITED AND
SUBSIDIARIES
Condensed Consolidated Balance Sheets
September 30, 2018 and December 31,
2017
(Unaudited)
(All currency expressed in United States
dollars in thousands)
2018 2017 Assets Current assets: Cash
and cash equivalents $ 154,572 $ 137,894 Accounts receivable, net
of allowance for doubtful accounts of $2,554 and $5,775,
respectively 93,645 78,312 Net investment in direct financing and
sales-type leases 50,885 56,959 Trading containers 12,197 10,752
Containers held for sale 29,937 22,089 Prepaid expenses and other
current assets 12,988 12,243 Insurance receivable 653 15,909 Due
from affiliates, net 1,415 1,134 Total current assets
356,292 335,292 Restricted cash 84,690 99,675 Containers, net of
accumulated depreciation of $1,278,386 and $1,172,355, respectively
4,174,469 3,791,610 Net investment in direct financing and
sales-type leases 116,496 125,665 Fixed assets, net of accumulated
depreciation of $11,344 and $10,788, respectively 1,967 2,151
Intangible assets, net of accumulated amortization of $42,763 and
$44,279, respectively 7,886 11,105 Interest rate swaps, collars and
caps 9,985 7,787 Deferred taxes 1,558 1,563 Other assets
4,238 5,494 Total assets $ 4,757,581 $ 4,380,342
Liabilities and Equity Current liabilities: Accounts payable
$ 7,110 $ 6,867 Accrued expenses 16,521 13,365 Container contracts
payable 249,915 131,087 Other liabilities 216 235 Due to owners,
net 9,968 11,131 Debt, net of unamortized deferred financing costs
of $5,836 and $3,989, respectively 195,950 233,681
Total current liabilities 479,680 396,366 Debt, net of unamortized
deferred financing costs of $24,097 and $20,045, respectively
3,003,282 2,756,627 Interest rate swaps, collars and caps 31 81
Income tax payable 9,436 9,081 Deferred taxes 7,233 5,881 Other
liabilities 1,867 2,024 Total liabilities
3,501,529 3,170,060 Equity: Textainer Group Holdings Limited
shareholders' equity:
Common shares, $0.01 par value. Authorized
140,000,000 shares; 57,779,493 shares issued and 57,149,493 shares
outstanding at 2018; 57,727,220 shares issued and 57,097,220 shares
outstanding at 2017
578 578 Additional paid-in capital 404,207 397,821 Treasury shares,
at cost, 630,000 shares (9,149 ) (9,149 ) Accumulated other
comprehensive loss (391 ) (309 ) Retained earnings 801,738
763,601 Total Textainer Group Holdings Limited shareholders’
equity 1,196,983 1,152,542 Noncontrolling interests 59,069
57,740 Total equity 1,256,052 1,210,282 Total
liabilities and equity $ 4,757,581 $ 4,380,342
TEXTAINER GROUP HOLDINGS LIMITED AND
SUBSIDIARIES
Condensed Consolidated Statements of Cash
Flows
Nine Months Ended September 30, 2018
and 2017
(Unaudited)
(All currency expressed in United States
dollars in thousands)
2018 2017 Cash flows from operating
activities: Net income $ 41,462 $ 2,406
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation expense 174,571 175,606 Container impairment 18,554
6,481 Bad debt expense, net 1,058 1,117 Unrealized gains on
interest rate swaps, collars and caps, net (2,248 ) (1,213 )
Amortization and write-off of unamortized
deferred debt issuance costs and accretion of bond discounts
7,616 18,345 Amortization of intangible assets 3,219 3,047 Gain on
sale of containers, net (26,480 ) (17,905 ) Share-based
compensation expense 6,334 4,701 Changes in operating assets and
liabilities (852 ) 3,869 Total adjustments
181,772 194,048 Net cash provided by operating activities
223,234 196,454 Cash flows from investing activities:
Purchase of containers and fixed assets (572,948 ) (57,717 )
Proceeds from sale of containers and fixed assets 106,504 97,794
Receipt of payments on direct financing and sales-type leases, net
of income earned 45,321 48,492 Insurance proceeds received for
unrecovered containers — 12,466 Net cash (used in)
provided by investing activities (421,123 ) 101,035
Cash flows from financing activities: Proceeds from debt 1,688,026
1,510,130 Principal payments on debt (1,476,401 ) (1,719,019 ) Debt
issuance costs (10,017 ) (25,911 ) Dividends paid to noncontrolling
interest (1,996 ) —
Issuance of common shares upon exercise of
share options
52 494
Net cash provided by (used in) financing
activities
199,664 (234,306 ) Effect of exchange rate changes
(82 ) 149 Net increase in cash, cash equivalents and
restricted cash 1,693 63,332 Cash, cash equivalents and restricted
cash, beginning of the year 237,569 142,123 Cash,
cash equivalents and restricted cash, end of the period $ 239,262 $
205,455
TEXTAINER GROUP HOLDINGS LIMITED AND
SUBSIDIARIESReconciliation of GAAP financial measures to
non-GAAP financial measuresThree and Nine Months and Ended
September 30, 2018 and 2017(Unaudited)(All currency expressed
in United States dollars in thousands, except per share
amounts)
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 nine months ended September 30, 2018 and 2017,
including:
(a) net income attributable to
Textainer Group Holdings Limited common shareholders to adjusted
EBITDA (Adjusted EBITDA defined as net income attributable to
Textainer Group Holdings Limited common shareholders before
interest income and expense, write-off of unamortized deferred debt
issuance costs and bond discounts, realized (gains) losses on
interest rate swaps, collars and caps, net, unrealized gains on
interest rate swaps, collars and caps, net, income tax expense, net
income attributable to the noncontrolling interests (“NCI”),
depreciation expense, container impairment, amortization expense
and the related impact of reconciling items on net income
attributable to the NCI);
(b) net cash provided by
operating activities to Adjusted EBITDA;
(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 the write-off of
unamortized deferred debt issuance costs and bond discounts,
unrealized gains on interest rate swaps, collars and caps, net,
costs associated with departing senior executives, the related
impact of reconciling items on income tax expense and 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 the
write-off of unamortized deferred debt issuance costs and bond
discounts, unrealized gains on interest rate swaps, collars and
caps, net, costs associated with departing senior executives, the
related impact of reconciling items on income tax expense and 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 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
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 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 income per diluted common share are useful in evaluating our
operating performance because unrealized 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 are 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 Nine Months Ended
September 30, September 30, 2018
2017 2018 2017 (Dollars in
thousands) (Dollars in thousands) (Unaudited)
(Unaudited) Reconciliation of adjusted net income:
Net income attributable to Textainer Group Holdings
Limited common shareholders
$ 1,913 $ 18,481 $ 38,137 $ 2,154 Adjustments: Write-off of
unamortized deferred debt issuance costs and bond discounts 881 238
881 7,466
Unrealized gains on interest rate swaps,
collars and caps, net
(22 ) (151 ) (2,248 ) (1,213 ) Costs associated with departing
senior executives 2,368 — 2,368 — Impact of reconciling items on
income tax expense (506 ) 1 (484 ) (103 )
Impact of reconciling items on net income
attributable to the noncontrolling interests
181 66 900 69
Adjusted net
income $ 4,815 $ 18,635 $ 39,554 $ 8,373
Reconciliation of
adjusted net income per diluted common share:
Net income attributable to Textainer Group
Holdings Limited common shareholders per diluted common share
$ 0.03 $ 0.32 $ 0.66 $ 0.04 Adjustments:
Write-off of unamortized deferred debt
issuance costs and bond discounts
0.02 0.01 0.02 0.13
Unrealized gains on interest rate swaps,
collars and caps, net
— — (0.04 ) (0.02 ) Costs associated with departing senior
executives 0.04 — 0.04 — Impact of reconciling items on income tax
expense (0.01 ) — (0.01 ) —
Impact of reconciling items on net income
attributable to the noncontrolling interests
— — 0.02 —
Adjusted net income per diluted common
share
$ 0.08 $ 0.33 $ 0.69 $ 0.15
Three Months
Ended Nine Months Ended September 30,
September 30, 2018 2017 2018
2017 (Dollars in thousands) (Dollars in
thousands) (Unaudited) (Unaudited)
Reconciliation of adjusted EBITDA:
Net income attributable to Textainer Group
Holdings Limited common shareholders
$ 1,913 $ 18,481 $ 38,137 $ 2,154 Adjustments: Interest income (446
) (191 ) (1,153 ) (408 ) Interest expense 35,706 30,069 101,838
88,386 Write-off of unamortized deferred debt issuance costs and
bond discounts 881 238 881 7,466 Realized (gains) losses on
interest rate swaps, collars and caps, net (1,268 ) (154 ) (3,951 )
1,487 Unrealized gains on interest rate swaps, collars and caps,
net (22 ) (151 ) (2,248 ) (1,213 ) Income tax expense (224 ) (4,783
) 1,262 431 Net income attributable to the noncontrolling interests
615 1,492 3,325 252 Depreciation expense 60,444 55,354 174,571
175,606 Container impairment 16,784 1,956 18,554 6,481 Amortization
expense 439 1,151 3,219 3,047
Impact of reconciling items on net income
attributable to the noncontrolling interests
(3,493 ) (2,856 ) (8,713 ) (9,761 )
Adjusted EBITDA $ 111,329 $ 100,606 $ 325,722 $ 273,928 Net cash
provided by operating activities $ 223,234 $ 196,454 Adjustments:
Bad debt expense, net (1,058 ) (1,117 )
Amortization of unamortized deferred debt
issuance costs and accretion of bond discount
(7,616 ) (18,345 ) Gain on sale of containers, net 26,480 17,905
Share-based compensation expense (6,334 ) (4,701 ) Interest income
(1,153 ) (408 ) Interest expense 101,838 88,386
Write-off of unamortized deferred debt
issuance costs and bond discounts
881 7,466
Realized (gains) losses on interest rate
swaps, collars and caps, net
(3,951 ) 1,487 Income tax expense 1,262 431 Changes in operating
assets and liabilities 852 (3,869 )
Impact of reconciling items on net income
attributable to the noncontrolling interests
(8,713 ) (9,761 ) Adjusted EBITDA $ 325,722 $ 273,928
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181102005069/en/
Textainer Group Holdings LimitedMichael K. Chan, +1
(415) 658-8261Executive 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