Dépêches

Textainer Group Holdings Limited Reports Fourth Quarter and Full Year 2010 Results and Declares Quarterly Dividend

Dépèche transmise le 10 février 2011 par Business Wire

HAMILTON, Bermuda--(BUSINESS WIRE)--Textainer Group Holdings Limited (NYSE:TGH) (“Textainer”, the “Company”, “we” and “our”), 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, 2010.

Total revenue for the fourth quarter 2010 was $84.0 million, which was an increase of $16.7 million, or 25%, compared to $67.3 million for the prior year quarter. For the year ended December 31, 2010, total revenue was $303.9 million, which was an increase of $64.9 million, or 27%, compared to $239.0 million for the prior year. EBITDA(1—see GAAP to non-GAAP reconciliations) for the fourth quarter 2010 was $65.3 million, which was an increase of $23.6 million, or 57%, compared to $41.7 million for the prior year quarter. The increase in EBITDA(1) for the fourth quarter 2010 compared to the prior year quarter was primarily due to an 11.6 percentage point improvement in utilization and a 13.4% increase in the Company’s owned fleet size. EBITDA(1) for the year ended December 31, 2010 was $219.0 million, which was an increase of $50.3 million, or 30%, compared to $168.7 million for the prior year. The increase in EBITDA(1) for the year ended December 31, 2010 compared to the prior year was primarily due to a 16.6% increase in the Company’s owned fleet size, an 8.2 percentage point improvement in utilization and a $15.3 million increase in gains on sales of containers, net, partially offset by a gain of $19.4 million in the prior year due to the early extinguishment of debt in 2009.

Net income attributable to Textainer Group Holdings Limited common shareholders excluding unrealized (gains) losses on interest rate swaps, net(1) for the fourth quarter 2010 was $35.7 million, which was an increase of $13.6 million, or 61%, compared to $22.1 million for the prior year quarter. Net income attributable to Textainer Group Holdings Limited common shareholders excluding unrealized (gains) losses on interest rate swaps, net(1) for the fourth quarter 2010 was positively affected by the improvement in utilization and the increase in the Company’s owned fleet size. Net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share excluding unrealized (gains) losses on interest rate swaps, net(1) for the fourth quarter 2010 was $0.72 per share, which was an increase of $0.26 per share, or 57%, compared to $0.46 per share for the prior year quarter.

Net income attributable to Textainer Group Holdings Limited common shareholders excluding unrealized (gains) losses on interest rate swaps, net(1) for the year ended December 31, 2010 was $123.5 million, which was an increase of $41.9 million, or 51%, compared to $81.6 million for the prior year. The increase in net income attributable to Textainer Group Holdings Limited common shareholders excluding unrealized (gains) losses on interest rate swaps, net(1) was primarily due to the increase in the Company’s owned fleet size, the improvement in utilization and the increase in gains on sales of containers, net, partially offset by the gain due to the early extinguishment of debt in 2009. Net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share excluding unrealized (gains) losses on interest rate swaps, net(1) for the year ended December 31, 2010 was $2.50 per share, which was an increase of $0.81 per share, or 48%, compared to $1.69 per share for the prior year.

Net income attributable to Textainer Group Holdings Limited common shareholders for the fourth quarter 2010 was $40.0 million, which was an increase of $14.7 million, or 58%, compared to $25.3 million for the prior year quarter. The increase in net income attributable to Textainer Group Holdings Limited common shareholders was primarily due to the improvement in utilization and the increase in the Company’s owned fleet size. Net income attributable to Textainer Group Holdings Limited common shareholders for the year ended December 31, 2010 was $120.0 million, which was an increase of $29.3 million, or 32%, compared to $90.8 million for the prior year. The increase in net income attributable to Textainer Group Holdings Limited common shareholders was primarily due to the increase in the Company’s owned fleet size, the improvement in utilization and the increase in gains on sales of containers, net, partially offset by the gain due to the early extinguishment of debt in 2009 and $4.0 million of unrealized losses on interest rate swaps, net in the year ended December 31, 2010 compared to $11.1 million of unrealized gains on interest rate swaps, net in the prior year.

Net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share for the fourth quarter 2010 was $0.81, which was an increase of $0.29 per share, or 56%, from the $0.52 per share for the prior year quarter. Net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share for the year ended December 31, 2010 was $2.43, which was an increase of $0.55 per share, or 29%, from the $1.88 per share for the prior year.

John A. Maccarone, President and Chief Executive Officer of Textainer, commented, “Our record financial results for 2010 demonstrate management’s continued successful execution of its growth strategy and further strengthens the Company’s industry leading position. During 2010, we significantly expanded our fleet with the acquisition of 214,000 TEU of new containers, which contributed to a 27.2% increase in total revenue and a 32.2% increase in net income attributable to Textainer Group Holdings Limited common shareholders compared to the prior year. Our results also benefited from a worldwide shortage of containers, which resulted in historically high utilization rates throughout the year. With 1,683,779 TEU, or 72.8%, of our fleet supported by long-term leases, we expect to be able to provide our shareholders with a sizeable contracted revenue stream. We also intend to utilize our considerable financial flexibility, including nearly $1 billion in total credit facilities with current liquidity of over $292 million, to capitalize on future growth opportunities that further expand our earnings power.”

Mr. Maccarone concluded, “As a result of our record results, balance sheet strength and the favorable market trends in the container leasing industry, Textainer’s Board declared a dividend increase for the fourth consecutive quarter. The $0.29 per share dividend for the three months ended December 31, 2010 represents a 7.4% increase from our previous quarterly payout and a 26.1% increase from the fourth quarter of 2009. In continuing our record of providing shareholders with sizeable and increasing cash distributions, we have now raised our quarterly payout a total of seven times since going public in October 2007 for a cumulative dividend of $3.29 per common share.”

Outlook

Industry

We expect new container production to be approximately 3.5 million TEU in 2011, compared to approximately 2.4 million TEU in 2010, due to stronger replacement demand, vessel capacity growth of approximately 6.8% and cargo volume growth of approximately 9.7%. In 2010, the container leasing industry purchased about two-thirds of all new container production as shipping lines were capital constrained. We expect the leasing sector to be major purchasers and suppliers of new containers again in 2011 as shipping lines continue to rely on leasing companies, such as Textainer, to meet their requirements for new containers. As a result of these positive trends, we expect utilization to remain in the high 90% range and the resale market for used containers to remain strong during 2011.

Strategic Focus

Our record year of new container purchases in 2010 consisted of 214,000 TEU at a cost of $503.7 million. Consistent with our strategy to increase the percentage of our owned fleet, approximately 90% of the new containers delivered in 2010 are owned by Textainer. Additionally, we purchased containers totaling 40,000 TEU that we had previously managed. Currently, our owned containers comprise 50.9% of Textainer’s total fleet as compared to 45.4% as of December 31, 2009. We generally earn significantly more income per TEU from containers that we own than from containers that we manage.

With the extension of the term of the securitization facility of Textainer Marine Containers Limited by two years and the increase in its size to a total revolving commitment of $750.0 million from $475.0 million in the second quarter of 2010, combined with a low debt-to-equity ratio of 1.3:1, we are in a strong position to continue to execute our growth strategy. We expect our capital expenditures for new container purchases in 2011 to be considerably higher than in 2010 as we seek to take full advantage of attractive market opportunities. We will also continue to pursue accretive acquisitions.

Dividend

On February 8, 2011, Textainer’s board of directors approved and declared a quarterly cash dividend of $0.29 per share on Textainer’s issued and outstanding common shares, payable on March 1, 2011 to shareholders of record as of February 22, 2011. This dividend is an increase of $0.02 per share from the prior quarter and will be the fourteenth consecutive quarterly dividend since Textainer’s October 2007 initial public offering. Combined, these dividends have averaged 46% of net income attributable to Textainer Group Holdings Limited common shareholders excluding unrealized (gains) losses on interest rate swaps, net(1) during this period. The current dividend represents 40% of net income attributable to Textainer Group Holdings Limited common shareholders excluding unrealized (gains) losses on interest rate swaps, net(1) for the fourth quarter and the last four quarterly dividends declared represent 41% of net income attributable to Textainer Group Holdings Limited common shareholders excluding unrealized (gains) losses on interest rate swaps, net(1) for the year ended December 31, 2010.

Investors’ Webcast

Textainer will hold a conference call and a Webcast with an accompanying slide presentation at 11:00 am EST on Thursday, February 10, 2011 to discuss Textainer’s 2010 fourth quarter and full year results. An archive of the Webcast will be available one hour after the live call through February 10, 2012. 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 has operated since 1979 and is the world’s largest lessor of intermodal containers based on fleet size. We have a total of 1.5 million containers, representing about 2.3 million TEU, in our owned and managed fleet. We lease containers to more than 400 shipping lines and other lessees. We lease dry freight containers, which are by far the most common of the three principal types of intermodal containers, as well as specialized and refrigerated containers. We have also been one of the largest purchasers of new containers among container lessors over the last 10 years. We are one of the largest sellers of used containers, having sold more than 77,000 containers last year to more than 1,100 customers. We provide our services worldwide via a network of regional and area offices and 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 expectation to be able to provide its shareholders with a sizeable contracted revenue stream; (ii) Textainer’s intention to utilize its considerable financial flexibility, including nearly $1 billion in total credit facilities with current liquidity of over $292 million, to capitalize on future growth opportunities that further expand its earnings power; (iii) Textainer’s expectation that new container production will be approximately 3.5 million TEU in 2011, compared to approximately 2.4 million TEU in 2010, due to stronger replacement demand, vessel capacity growth of approximately 6.8% and cargo volume growth of approximately 9.7%; (iv) Textainer’s expectation that the leasing sector will be major purchasers and suppliers of new containers again in 2011 as shipping lines continue to rely on leasing companies, such as Textainer, to meet their requirements for new containers; (v) Textainer’s expectation that utilization will remain in the 90% range and the resale market for used containers will remain strong during 2011; (vi) Textainer’s belief that, with the extension of the securitization facility of Textainer Marine Containers Limited by two years and the increase in its size to a total revolving commitment of $750.0 million from $475.0 million in the second quarter of 2010, combined with a low debt-to-equity ratio of 1.3:1, it is still in a strong position to continue to execute its growth strategy; (vii) Textainer’s expectation that its capital expenditures for new container purchases in 2011 will be considerably higher than in 2010; and (viii) Textainer’s belief that it will seek to take full advantage of attractive market opportunities and continue to pursue accretive acquisitions in 2011. 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 risk that there could be a double-dip global recession that may adversely affect our business, financial condition and results of operations, including the risk that a double-dip global recession may delay or prevent Textainer's customers from making payments; the risk that gains and losses associated with the disposition of equipment may fluctuate; Textainer's ability to finance the continued purchase of containers; the demand for leased containers depends on many political and economic factors beyond Textainer's control; lease and freight rates may decline; the demand for leased containers is partially tied to international trade; Textainer faces extensive competition in the container leasing industry; the international nature of the container shipping industry exposes Textainer to numerous risks; acquisitions involve a number of risks and present financial, managerial and operational challenges; 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 17, 2010.

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 Balance Sheets
December 31, 2010 and 2009
(Unaudited)
(All currency expressed in United States dollars in thousands)
					2010			2009

Assets
Current assets:
	Cash and cash equivalents			$	57,081		$	56,819
	Accounts receivable, net of allowance for doubtful accounts of
		$8,653 and $8,347 in 2010 and 2009, respectively			63,511			68,896
	Net investment in direct financing and sales-type leases				19,117			17,225
	Trading containers				404			1,271
	Containers held for sale				2,883			9,756
	Prepaid expenses				8,603			1,785
	Deferred taxes				1,895			1,463
	Due from affiliates, net				-			126
			Total current assets		153,494			157,341
Restricted cash					15,034			6,586
Containers, net of accumulated depreciation of $361,791 and $343,513
	at 2010 and 2009, respectively				1,437,259			1,061,866
Net investment in direct financing and sales-type leases					72,224			63,326
Fixed assets, net of accumulated depreciation of $8,820 and $8,512
	at 2010 and 2009, respectively				1,804			1,986
Intangible assets, net of accumulated amortization of $27,441 and $20,897
	at 2010 and 2009, respectively				60,122			66,692
Interest rate swaps					1,320			731
Other assets					5,950			1,495
			Total assets	$	1,747,207		$	1,360,023

Liabilities and Equity
Current liabilities:
	Accounts payable			$	6,296		$	9,078
	Accrued expenses				11,988			9,740
	Container contracts payable				98,731			13,140
	Deferred revenue				6,855			7,948
	Due to owners, net				17,545			14,141
	Secured debt facility				-			16,500
	Bonds payable				51,500			51,500
			Total current liabilities		192,915			122,047
Revolving credit facility					104,000			79,000
Secured debt facility					558,127			313,021
Bonds payable					175,570			226,875
Deferred revenue					2,994			11,294
Interest rate swaps					13,581			8,971
Income tax payable					20,821			18,656
Deferred taxes					8,632			6,894
			Total liabilities		1,076,640			786,758
Equity:
Textainer Group Holdings Limited shareholders' equity:
	Common shares, $0.01 par value. Authorized 140,000,000 shares; issued and
		outstanding 48,318,058 and 47,760,771 at 2010 and 2009, respectively			483			478
	Additional paid-in capital				181,602			170,497
	Accumulated other comprehensive loss				(52	)		(111	)
	Retained earnings				401,849			329,449
			Total Textainer Group Holdings Limited shareholders’ equity		583,882			500,313
Noncontrolling interest					86,685			72,952
			Total equity		670,567			573,265
			Total liabilities and equity	$	1,747,207		$	1,360,023


TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Condensed Consolidated Statements of Income
Three Months and Years Ended December 31, 2010 and 2009
(Unaudited)
(All currency expressed in United States dollars in thousands, except per share amounts)

				Three Months Ended				Years Ended
				December 31,				December 31,
					2010		2009		2010		2009

Revenues:
	Lease rental income			$	68,237	$	51,060	$	235,827	$	189,779
	Management fees				8,072		6,581		29,137		25,228
	Trading container sales proceeds				1,445		5,729		11,291		11,843
	Gains on sale of containers, net				6,245		3,953		27,624		12,111
		Total revenues			83,999		67,323		303,879		238,961
Operating expenses:
	Direct container expense				4,094		11,476		25,542		39,062
	Cost of trading containers sold				1,146		4,417		9,046		9,721
	Depreciation expense				18,050		13,507		58,972		48,473
	Amortization expense				1,756		1,601		6,544		7,080
	General and administrative expense				5,575		5,056		21,670		20,304
	Short-term incentive compensation expense				1,342		1,094		4,805		2,924
	Long-term incentive compensation expense				1,118		959		5,318		3,575
	Bad debt expense, net				399		99		145		3,304
		Total operating expenses			33,480		38,209		132,042		134,443
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