HAMILTON, Bermuda, May 9, 2019 /PRNewswire/ -- 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 first-quarter
ended March 31, 2019.
Key Financial Information (in thousands except for per share
and TEU amounts) and Business Highlights:
|
|
QTD
|
|
|
|
Q1
2019
|
|
|
Q4
2018
|
|
|
Q1
2018
|
|
Lease rental income
(1)
|
|
$
|
155,526
|
|
|
$
|
157,115
|
|
|
$
|
148,626
|
|
Gain on sale of owned
fleet containers, net
|
|
$
|
6,767
|
|
|
$
|
9,591
|
|
|
$
|
6,627
|
|
Income from
operations
|
|
$
|
58,700
|
|
|
$
|
56,334
|
|
|
$
|
48,656
|
|
Net income
attributable to Textainer Group Holdings
Limited
common shareholders
|
|
$
|
17,050
|
|
|
$
|
12,241
|
|
|
$
|
18,718
|
|
Net income
attributable to Textainer Group Holdings
Limited
common shareholders per diluted common share
|
|
$
|
0.30
|
|
|
$
|
0.21
|
|
|
$
|
0.33
|
|
Adjusted net income
(2)
|
|
$
|
22,442
|
|
|
$
|
11,917
|
|
|
$
|
17,008
|
|
Adjusted net income
per diluted common share (2)
|
|
$
|
0.39
|
|
|
$
|
0.21
|
|
|
$
|
0.30
|
|
Adjusted EBITDA
(2)
|
|
$
|
118,129
|
|
|
$
|
115,000
|
|
|
$
|
105,253
|
|
Average fleet
utilization
|
|
|
98.3
|
%
|
|
|
98.6
|
%
|
|
|
97.8
|
%
|
Total fleet size at
end of period (TEU)
|
|
|
3,410,710
|
|
|
|
3,354,724
|
|
|
|
3,329,110
|
|
Owned percentage of
total fleet at end of period
|
|
|
79.5
|
%
|
|
|
78.9
|
%
|
|
|
75.8
|
%
|
|
|
(1)
|
"Lease rental income"
includes both owned and managed fleet lease rental income. See note
(a) within the attached Condensed Consolidated Statements of
Comprehensive Income.
|
|
|
(2)
|
"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. Section "Reconciliation of
GAAP financial measures to non-GAAP financial measures" provides
certain qualifications and limitations on the use of Non-GAAP
Measures.
|
- Lease rental income of $155.5
million for the first quarter, as compared to $157.1 million in the fourth quarter of
2018;
- Adjusted net income of $22.4
million for the first quarter, or $0.39 per diluted common share, as compared to
$11.9 million, or $0.21 per diluted common share in the fourth
quarter of 2018;
- Adjusted EBITDA of $118.1 million
for the first quarter, an increase of $3.1
million (or 2.7%) from the fourth quarter of 2018;
- Issued $350 million fixed rate
asset backed notes on April 24, 2019,
increasing our ratio of fixed rate or hedged debt to 84% of total
debt outstanding;
- Utilization averaged 98.3% for the first quarter, as compared
to 98.6% for the fourth quarter of 2018; and
- Container investments of approximately $200 million delivered during the first
quarter.
"We are pleased with our performance in the first quarter, which
was in line with our expectations. Adjusted EBITDA increased
$3.1 million, or 2.7%, to
$118.1 million, while adjusted net
income increased $10.5 million, or
88.3%, to $22.4 million in the first
quarter as compared to the fourth quarter of 2018. These
improvements were achieved despite the slow market activity that we
experienced towards the end of 2018 and which continued through the
first quarter, resulting in a slightly lower lease rental income of
$155.5 million," stated Olivier Ghesquiere, President and Chief
Executive Officer of Textainer Group Holdings Limited.
Ghesquiere continued, "Despite a quiet start to the year and
uncertainties about the world economy, trade and shipping volumes
have remained strong following the robust expansion experienced in
2018. We remain optimistic that we will deliver growth and improved
financial performance as we continue to implement our strategic
initiatives and anticipate an acceleration in overall market
activity in the second half of the year. The fundamentals of our
business remain positive, evidenced by low turn-in activity, high
utilization, a stable container resale environment, reasonable
inventory levels, and recently increasing new container
prices. In addition, with the successful completion of our
recent $350 million asset backed
financing, we remain well positioned and ready to capture
profitable market growth opportunities as they arise."
First-Quarter Results
Lease rental income decreased $1.6
million from the fourth quarter of 2018, mostly due to
having two fewer billing days in the first quarter of 2019. This
was partially offset by a slight increase in the average rental
rate of the fleet, resulting in stable revenues per available
day.
Trading container margin increased $1.3
million from the fourth quarter of 2018 and $2.2 million from the first quarter of 2018,
mostly due to an increase in the number of containers sold.
Gain on sale of owned fleet containers, net, decreased
$2.8 million from the fourth quarter
of 2018 due primarily to a decrease in the number of containers
sold as volumes fell back in line with our normal run rate.
Direct container expense – owned fleet, decreased $3.5 million, compared to the fourth quarter of
2018, mostly due to container recovery costs for defaulted lessees
that did not recur during the current quarter, as well as a
decrease in repositioning expense. Direct container expense – owned
fleet, decreased $2.0 million,
compared to the first quarter of 2018, primarily due to a decrease
in repositioning expense.
Container impairment was $0.8
million for the quarter, mostly related to normal activity
from containers moved to disposal. Overall, the level of
impairment was lower than in the fourth quarter of 2018 as no
further impairment for unrecoverable containers held by defaulted
lessees was recorded.
General and administrative expense decreased $0.8 million, compared to the fourth quarter of
2018, due mostly to a reduction in professional fees.
Bad debt expense was $0.2 million
for the quarter, relating to normal adjustments to existing
reserves with no new defaulted lessees.
Unrealized loss on interest rate swaps, collars and caps, net,
was $5.7 million for the quarter,
resulting from a notable decrease in the forward LIBOR curve at the
end of the quarter which reduced the value of our interest rate
derivatives. This is a non-cash loss that flows through Net income
as we have not elected to designate our derivative instruments
under hedge accounting. However, Textainer intends to hold the
underlying hedges until maturity, therefore, any unrealized gain or
loss will net to zero over the life of the hedge.
A gain on insurance recovery of $8.7
million was recorded in the fourth quarter of 2018, relating
to the final insurance settlement of the Hanjin bankruptcy, with no
comparable recovery during the first quarter of 2019.
Conference Call and Webcast
A conference call to discuss the financial results for the first
quarter 2019 will be held at 5:00 pm EDT on
Thursday, May 9, 2019. The dial-in number for the
conference call is 1-855-327-6838 (U.S. & Canada) and 1-631-891-4304 (International).
The call and archived replay may also be accessed via webcast on
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 more than 3.4 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, refrigerated intermodal containers, and
dry freight specials. We also lease tank containers through our
relationship with Trifleet Leasing and are a 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 almost 140,000 containers per year for the
last five years to more than 1,500 customers making us one of the
largest sellers of used containers. Textainer operates via a
network of 14 offices and approximately 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) we will
deliver growth and an improvement in financial performance; (ii) we
anticipate an acceleration in market activity in the second half of
the year; and (iii) we will hold all hedges until maturity. 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 25, 2019.
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
Investor Relations
Phone: +1 (415) 658-8333
ir@textainer.com
TEXTAINER GROUP
HOLDINGS LIMITED AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Comprehensive Income
|
Three Months Ended
March 31, 2019 and 2018
|
(Unaudited)
|
(All currency
expressed in United States dollars in thousands, except per share
amounts)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2019
|
|
|
2018
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease rental income -
owned fleet
|
|
|
|
|
|
$
|
128,973
|
|
|
|
|
|
|
$
|
120,222
|
|
Lease rental income -
managed fleet (a)
|
|
|
|
|
|
|
26,553
|
|
|
|
|
|
|
|
28,404
|
|
Lease rental
income
|
|
|
|
|
|
|
155,526
|
|
|
|
|
|
|
|
148,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees -
non-leasing (a)
|
|
|
|
|
|
|
2,301
|
|
|
|
|
|
|
|
1,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading container
sales proceeds (b)
|
|
|
|
|
|
|
13,300
|
|
|
|
|
|
|
|
2,401
|
|
Cost of trading
containers sold (b)
|
|
|
|
|
|
|
(10,732)
|
|
|
|
|
|
|
|
(2,105)
|
|
Trading container
margin
|
|
|
|
|
|
|
2,568
|
|
|
|
|
|
|
|
296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of owned
fleet containers, net (b)
|
|
|
|
|
|
|
6,767
|
|
|
|
|
|
|
|
6,627
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct container
expense - owned fleet
|
|
|
|
|
|
|
11,647
|
|
|
|
|
|
|
|
13,696
|
|
Distribution to
managed fleet owners (a)
|
|
|
|
|
|
|
24,480
|
|
|
|
|
|
|
|
26,231
|
|
Depreciation
expense
|
|
|
|
|
|
|
60,944
|
|
|
|
|
|
|
|
56,334
|
|
Container
impairment
|
|
|
|
|
|
|
800
|
|
|
|
|
|
|
|
832
|
|
Amortization
expense
|
|
|
|
|
|
|
602
|
|
|
|
|
|
|
|
1,822
|
|
General and
administrative expense (c)
|
|
|
|
|
|
|
9,830
|
|
|
|
|
|
|
|
10,400
|
|
Bad debt expense
(benefit), net
|
|
|
|
|
|
|
159
|
|
|
|
|
|
|
|
(607)
|
|
Total operating
expenses
|
|
|
|
|
|
|
108,462
|
|
|
|
|
|
|
|
108,708
|
|
Income from
operations
|
|
|
|
|
|
|
58,700
|
|
|
|
|
|
|
|
48,656
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
(37,516)
|
|
|
|
|
|
|
|
(31,619)
|
|
Interest
income
|
|
|
|
|
|
|
638
|
|
|
|
|
|
|
|
303
|
|
Realized gain on
interest rate swaps, collars and
caps, net
|
|
|
|
|
|
|
1,444
|
|
|
|
|
|
|
|
1,184
|
|
Unrealized (loss)
gain on interest rate swaps, collars and caps, net
|
|
|
|
|
|
|
(5,738)
|
|
|
|
|
|
|
|
2,263
|
|
Other, net
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
2
|
|
Net other
expense
|
|
|
|
|
|
|
(41,172)
|
|
|
|
|
|
|
|
(27,867)
|
|
Income before income
tax and noncontrolling
interests
|
|
|
|
|
|
|
17,528
|
|
|
|
|
|
|
|
20,789
|
|
Income tax
expense
|
|
|
|
|
|
|
(373)
|
|
|
|
|
|
|
|
(560)
|
|
Net income
|
|
|
|
|
|
|
17,155
|
|
|
|
|
|
|
|
20,229
|
|
Less: Net income
attributable to the noncontrolling
interests
|
|
|
(105)
|
|
|
|
|
|
|
|
(1,511)
|
|
|
|
|
|
Net income
attributable to Textainer Group Holdings Limited common shareholders
|
|
$
|
17,050
|
|
|
|
|
|
|
$
|
18,718
|
|
|
|
|
|
Net income
attributable to Textainer Group Holdings
Limited
common shareholders per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.30
|
|
|
|
|
|
|
$
|
0.33
|
|
|
|
|
|
Diluted
|
|
$
|
0.30
|
|
|
|
|
|
|
$
|
0.33
|
|
|
|
|
|
Weighted average
shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
57,475
|
|
|
|
|
|
|
|
57,099
|
|
|
|
|
|
Diluted
|
|
|
57,587
|
|
|
|
|
|
|
|
57,530
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
|
|
|
|
107
|
|
|
|
|
|
|
|
106
|
|
Comprehensive
income
|
|
|
|
|
|
|
17,262
|
|
|
|
|
|
|
|
20,335
|
|
Comprehensive income
attributable to the noncontrolling
interests
|
|
|
|
|
|
|
(105)
|
|
|
|
|
|
|
|
(1,511)
|
|
Comprehensive income
attributable to Textainer Group
Holdings Limited common shareholders
|
|
|
|
|
|
$
|
17,157
|
|
|
|
|
|
|
$
|
18,824
|
|
|
|
(a)
|
Management fees for
managed fleet leasing revenue for the period ended March 31, 2018
have been reclassified to present the gross amount of revenue and
expense under separate line items "lease rental income – managed
fleet" and "distribution to managed fleet owners" to conform with
the 2019 presentation. Management fees - non-leasing include
acquisition fees and sales commission earned on the managed
fleet.
|
|
|
(b)
|
Amounts for the
period ended March 31, 2018 have been reclassified to conform with
the 2019 presentation.
|
|
|
(c)
|
Amounts for the
period ended March 31, 2018 have been reclassified out of the
separate line items "short term incentive compensation expense" and
"long term incentive compensation expense" and included within
"general and administrative expense" to conform with the 2019
presentation.
|
TEXTAINER GROUP
HOLDINGS LIMITED AND SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets
|
March 31, 2019 and
December 31, 2018
|
(Unaudited)
|
(All currency
expressed in United States dollars in thousands)
|
|
|
|
2019
|
|
|
2018
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
132,001
|
|
|
$
|
137,298
|
|
Accounts receivable,
net of allowance for doubtful accounts of $4,190 and $4,082,
respectively
|
|
|
105,205
|
|
|
|
110,222
|
|
Net investment in
direct financing and sales-type leases
|
|
|
38,246
|
|
|
|
39,270
|
|
Trading
containers
|
|
|
33,801
|
|
|
|
40,852
|
|
Containers held for
sale
|
|
|
24,126
|
|
|
|
21,874
|
|
Prepaid expenses and
other current assets
|
|
|
18,861
|
|
|
|
12,855
|
|
Insurance
receivable
|
|
|
—
|
|
|
|
9,814
|
|
Due from affiliates,
net
|
|
|
1,682
|
|
|
|
1,692
|
|
Total current
assets
|
|
|
353,922
|
|
|
|
373,877
|
|
Restricted
cash
|
|
|
87,522
|
|
|
|
87,630
|
|
Containers, net of
accumulated depreciation of $1,342,732 and $1,322,221,
respectively
|
|
|
4,182,395
|
|
|
|
4,134,016
|
|
Net investment in
direct financing and sales-type leases
|
|
|
147,613
|
|
|
|
127,790
|
|
Fixed assets, net of
accumulated depreciation of $11,731 and $11,525,
respectively
|
|
|
1,967
|
|
|
|
2,066
|
|
Intangible assets,
net of accumulated amortization of $43,868 and $43,266,
respectively
|
|
|
6,782
|
|
|
|
7,384
|
|
Interest rate swaps,
collars and caps
|
|
|
3,242
|
|
|
|
5,555
|
|
Deferred
taxes
|
|
|
2,090
|
|
|
|
2,087
|
|
Other
assets
|
|
|
15,670
|
|
|
|
3,891
|
|
Total
assets
|
|
$
|
4,801,203
|
|
|
$
|
4,744,296
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
6,039
|
|
|
$
|
5,151
|
|
Accrued
expenses
|
|
|
13,616
|
|
|
|
20,023
|
|
Container contracts
payable
|
|
|
93,265
|
|
|
|
42,710
|
|
Other
liabilities
|
|
|
2,047
|
|
|
|
219
|
|
Due to owners,
net
|
|
|
7,186
|
|
|
|
8,322
|
|
Debt, net of
unamortized deferred financing costs of $5,667 and $5,738,
respectively
|
|
|
177,684
|
|
|
|
191,689
|
|
Total current
liabilities
|
|
|
299,837
|
|
|
|
268,114
|
|
Debt, net of
unamortized deferred financing costs of $20,589 and $22,248,
respectively
|
|
|
3,207,701
|
|
|
|
3,218,138
|
|
Interest rate swaps,
collars and caps
|
|
|
7,064
|
|
|
|
3,639
|
|
Income tax
payable
|
|
|
9,671
|
|
|
|
9,570
|
|
Deferred
taxes
|
|
|
8,188
|
|
|
|
7,039
|
|
Other
liabilities
|
|
|
14,433
|
|
|
|
1,805
|
|
Total
liabilities
|
|
|
3,546,894
|
|
|
|
3,508,305
|
|
Equity:
|
|
|
|
|
|
|
|
|
Textainer Group
Holdings Limited shareholders' equity:
|
|
|
|
|
|
|
|
|
Common shares, $0.01
par value. Authorized 140,000,000 shares; 58,032,164 shares issued
and 57,402,164 shares
outstanding
|
|
|
581
|
|
|
|
581
|
|
Additional paid-in
capital
|
|
|
407,139
|
|
|
|
406,083
|
|
Treasury shares, at
cost, 630,000 shares
|
|
|
(9,149)
|
|
|
|
(9,149)
|
|
Accumulated other
comprehensive loss
|
|
|
(329)
|
|
|
|
(436)
|
|
Retained
earnings
|
|
|
826,784
|
|
|
|
809,734
|
|
Total Textainer Group
Holdings Limited shareholders' equity
|
|
|
1,225,026
|
|
|
|
1,206,813
|
|
Noncontrolling
interests
|
|
|
29,283
|
|
|
|
29,178
|
|
Total
equity
|
|
|
1,254,309
|
|
|
|
1,235,991
|
|
Total liabilities and
equity
|
|
$
|
4,801,203
|
|
|
$
|
4,744,296
|
|
|
|
|
|
|
|
|
|
|
|
|
TEXTAINER GROUP
HOLDINGS LIMITED AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows
|
Three Months Ended
March 31, 2019 and 2018
|
(Unaudited)
|
(All currency
expressed in United States dollars in thousands)
|
|
|
|
2019
|
|
|
2018
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
17,155
|
|
|
$
|
20,229
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
expense
|
|
|
60,944
|
|
|
|
56,334
|
|
Container
impairment
|
|
|
800
|
|
|
|
832
|
|
Bad debt expense
(recovery), net
|
|
|
159
|
|
|
|
(607)
|
|
Unrealized loss (gain)
on interest rate swaps, collars and caps, net
|
|
|
5,738
|
|
|
|
(2,263)
|
|
Amortization and
write-off of unamortized deferred debt issuance costs and
accretion of bond discounts
|
|
|
1,870
|
|
|
|
2,213
|
|
Amortization of
intangible assets
|
|
|
602
|
|
|
|
1,822
|
|
Gain on sale of owned
fleet containers, net
|
|
|
(6,767)
|
|
|
|
(6,627)
|
|
Share-based
compensation expense
|
|
|
1,056
|
|
|
|
1,504
|
|
Changes in operating
assets and liabilities
|
|
|
25,552
|
|
|
|
4,554
|
|
Total
adjustments
|
|
|
89,954
|
|
|
|
57,762
|
|
Net cash provided by
operating activities
|
|
|
107,109
|
|
|
|
77,991
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of containers
and fixed assets
|
|
|
(119,335)
|
|
|
|
(253,619)
|
|
Proceeds from sale of
containers and fixed assets
|
|
|
32,885
|
|
|
|
32,639
|
|
Net cash used in
investing activities
|
|
|
(86,450)
|
|
|
|
(220,980)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from
debt
|
|
|
40,000
|
|
|
|
714,000
|
|
Principal payments on
debt
|
|
|
(66,171)
|
|
|
|
(533,367)
|
|
Debt issuance
costs
|
|
|
—
|
|
|
|
(2,674)
|
|
Issuance of common
shares upon exercise of share options
|
|
|
—
|
|
|
|
25
|
|
Net cash (used in)
provided by financing activities
|
|
|
(26,171)
|
|
|
|
177,984
|
|
Effect of exchange
rate changes
|
|
|
107
|
|
|
|
106
|
|
Net (decrease)
increase in cash, cash equivalents and restricted cash
|
|
|
(5,405)
|
|
|
|
35,101
|
|
Cash, cash
equivalents and restricted cash, beginning of the year
|
|
|
224,928
|
|
|
|
237,569
|
|
Cash, cash
equivalents and restricted cash, end of the period
|
|
$
|
219,523
|
|
|
$
|
272,670
|
|
TEXTAINER GROUP HOLDINGS LIMITED AND
SUBSIDIARIES
Reconciliation of GAAP financial measures to
non-GAAP financial measures
Three Months Ended March 31, 2019 and 2018
(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
(c) below and defined as "Non-GAAP Measures") for the three
months ended March 31, 2019 and 2018, 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, realized gain on
interest rate swaps, collars and caps, net, unrealized loss (gain)
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 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 loss (gain) on interest rate swaps,
collars and caps, net, the related impact of reconciling items on
income tax expense and net income attributable to the NCI);
and
|
|
|
(c)
|
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 loss (gain) on interest rate swaps,
collars and caps, net, 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 loss (gain) 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 loss (gain) 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
|
|
|
|
March
31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
(Dollars in
thousands)
|
|
|
|
(Unaudited)
|
|
Reconciliation of
adjusted net income:
|
|
|
|
|
|
|
|
|
Net income
attributable to Textainer Group Holdings
Limited
common shareholders
|
|
$
|
17,050
|
|
|
$
|
18,718
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Unrealized loss (gain)
on interest rate swaps, collars and caps, net
|
|
|
5,738
|
|
|
|
(2,263)
|
|
Impact of reconciling
items on income tax expense
|
|
|
(57)
|
|
|
|
22
|
|
Impact of reconciling
items on net income attributable to the noncontrolling interests
|
|
|
(289)
|
|
|
|
531
|
|
Adjusted net
income
|
|
$
|
22,442
|
|
|
$
|
17,008
|
|
Reconciliation of
adjusted net income per diluted common share:
|
|
|
|
|
|
|
|
|
Net income
attributable to Textainer Group Holdings
Limited
common shareholders per diluted common share
|
|
$
|
0.30
|
|
|
$
|
0.33
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Unrealized loss (gain)
on interest rate swaps, collars and caps, net
|
|
|
0.10
|
|
|
|
(0.04)
|
|
Impact of reconciling
items on income tax expense
|
|
|
—
|
|
|
|
—
|
|
Impact of reconciling
items on net income attributable to the noncontrolling interests
|
|
|
(0.01)
|
|
|
|
0.01
|
|
Adjusted net
income per diluted common share
|
|
$
|
0.39
|
|
|
$
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
(Dollars in
thousands)
|
|
|
|
(Unaudited)
|
|
Reconciliation of
adjusted EBITDA:
|
|
|
|
|
|
|
|
|
Net income
attributable to Textainer Group Holdings
Limited
common shareholders
|
|
$
|
17,050
|
|
|
$
|
18,718
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
(638)
|
|
|
|
(303)
|
|
Interest
expense
|
|
|
37,516
|
|
|
|
31,619
|
|
Realized gain on
interest rate swaps, collars and caps, net
|
|
|
(1,444)
|
|
|
|
(1,184)
|
|
Unrealized loss (gain)
on interest rate swaps, collars and caps, net
|
|
|
5,738
|
|
|
|
(2,263)
|
|
Income tax
expense
|
|
|
373
|
|
|
|
560
|
|
Net income
attributable to the noncontrolling interests
|
|
|
105
|
|
|
|
1,511
|
|
Depreciation
expense
|
|
|
60,944
|
|
|
|
56,334
|
|
Container
impairment
|
|
|
800
|
|
|
|
832
|
|
Amortization
expense
|
|
|
602
|
|
|
|
1,822
|
|
Impact of reconciling
items on net income attributable to the noncontrolling interests
|
|
|
(2,917)
|
|
|
|
(2,393)
|
|
Adjusted
EBITDA
|
|
$
|
118,129
|
|
|
$
|
105,253
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/textainer-group-holdings-limited-reports-first-quarter-2019-results-300847563.html
SOURCE Textainer Group Holdings Limited