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Textainer Group Holdings Limited Reports Second Quarter and Six Months 2011 Results and Declares Quarterly Dividend
Dépèche transmise le 9 août 2011 par Business Wire
Textainer Group Holdings Limited Reports Second Quarter and Six Months 2011 Results and Declares Quarterly Dividend
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 second quarter and six months ended June 30, 2011.
“Textainer’s Board declared a dividend increase for the sixth consecutive quarter. Our second quarter 2011 dividend represents an increase of 6.5% from our previous quarterly payout and continues our record of stable or increasing dividends.”
Total revenue for the second quarter 2011 was $105.7 million, which was an increase of $31.1 million, or 42%, compared to $74.6 million for the prior year comparable quarter. For the six months ended June 30, 2011, total revenue was $196.9 million, which was an increase of $52.7 million, or 37% compared to $144.3 million for the prior year comparable period. EBITDA(1—see GAAP to non-GAAP reconciliations) for the second quarter 2011 was $86.5 million, which was an increase of $34.9 million, or 68%, compared to $51.6 million for the prior year comparable quarter. The increase in EBITDA(1) for the second quarter 2011 compared to the prior year comparable quarter was primarily due to a 36.0% increase in the Company’s owned fleet size, a 8.6% increase in per diem rental rates and a 3.4 percentage point improvement in utilization. EBITDA(1) for the six months ended June 30, 2011 was $156.4 million, which was an increase of $59.1 million, or 61%, compared to $97.3 million for the prior year comparable period. The increase in EBITDA(1) for the six months ended June 30, 2011 compared to the prior year comparable period was primarily due to a 28.6% increase in the Company’s owned fleet size, an 11.7% increase in per diem rental rates and a 5.7 percentage point improvement in utilization.
Net income attributable to Textainer Group Holdings Limited common shareholders excluding unrealized losses on interest rate swaps, net and gain on sale of containers to NCI(1) for the second quarter 2011 was $40.4 million, which was an increase of $11.5 million, or 40%, compared to $29.0 million for the prior year comparable quarter. Net income attributable to Textainer Group Holdings Limited common shareholders excluding unrealized losses on interest rate swaps, net and gain on sale of containers to NCI(1) for the second quarter 2011 was positively affected by the increases in the Company’s owned fleet size and per diem rental rates and the improvement in utilization. Net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share excluding unrealized losses on interest rate swaps, net and gain on sale of containers to NCI(1) for the second quarter 2011 was $0.81 per share, which was an increase of $0.22 per share, or 37%, compared to $0.59 per share for the prior year comparable quarter.
Net income attributable to Textainer Group Holdings Limited common shareholders excluding unrealized losses on interest rate swaps, net and gain on sale of containers to NCI(1) for the six months ended June 30, 2011 was $75.9 million, which was an increase of $21.4 million, or 39%, compared to $54.5 million for the prior year comparable period. Net income attributable to Textainer Group Holdings Limited common shareholders excluding unrealized losses on interest rate swaps, net and gain on sale of containers to NCI(1) for the six months ended June 30, 2011 was positively affected by the increases in the Company’s owned fleet size and per diem rental rates and the improvement in utilization. Net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share excluding unrealized losses on interest rate swaps, net and gain on sale of containers to NCI(1) for the six months ended June 30, 2011 was $1.52 per share, which was an increase of $0.41 per share, or 37%, compared to $1.11 per share for the prior year comparable period.
Net income attributable to Textainer Group Holdings Limited common shareholders for the second quarter 2011 was $51.7 million, which was an increase of $26.6 million, or 106%, compared to $25.1 million for the prior year comparable quarter. The increase in net income attributable to Textainer Group Holdings Limited common shareholders for the second quarter 2011 was primarily due to a $19.8 million gain on sale of containers to NCI, the increases in the Company’s owned fleet size and per diem rental rates and the improvement in utilization. Net income attributable to Textainer Group Holdings Limited common shareholders for the six months ended June 30, 2011 was $88.9 million, which was an increase of $39.6 million, or 80%, compared to $49.3 million for the prior year comparable period. The increase in net income attributable to Textainer Group Holdings Limited common shareholders for the six months ended June 30, 2011 was primarily due to the $19.8 million gain on sale of containers to NCI, the increases in the Company’s owned fleet size and per diem rental rates and the improvement in utilization.
Net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share for the second quarter 2011 was $1.03, which was an increase of $0.52 per share, or 102%, from the $0.51 per share for the prior year comparable quarter. Net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share for the six months ended June 30, 2011 was $1.78, which was an increase of $0.77 per share, or 76%, from the $1.01 per share for the prior year comparable period.
John A. Maccarone, President and Chief Executive Officer of Textainer, commented, “Textainer achieved solid results for the second quarter of 2011 aided by a record $556.2 million of orders of new containers and $204.8 million on used containers, for a total of $761 million of capital expenditures year-to-date, a new record. Continued record high utilization and historically high sales prices for our older containers being retired from marine service also contributed to our results. With 78% of our fleet committed to long-term and direct financing leases, we expect to continue to provide our shareholders with a sizeable contracted revenue stream. Also, as a result of a capital restructuring of TMCL, TL now owns 100% of TMCL, eliminating the related noncontrolling equity interest. This transaction simplifies our capital structure.”
Mr. Maccarone concluded, “Textainer’s Board declared a dividend increase for the sixth consecutive quarter. Our second quarter 2011 dividend represents an increase of 6.5% from our previous quarterly payout and continues our record of stable or increasing dividends.”
Outlook
Industry
While in-fleet container utilization continues to remain at historic highs, demand for our new standard dry-freight containers began to slow during the second quarter. We did not order any new standard dry freight containers for July or August production because we had an ample supply available from new production through June. Unless the traditional peak season occurs during August and September, it is unlikely that we will order new standard dry-freight containers for the next few months. Conversely, the demand for refrigerated containers remains strong. We have already ordered more than twice as many refrigerated containers for delivery through December 2011 than in each of the three previous full years.
At this point, we expect that high in-fleet utilization will continue through at least the remainder of 2011.
Strategic Focus
TMCL’s issuance of $400 million in fixed rate asset backed notes in June represented one of the largest container securitizations in history and again demonstrated Textainer’s ability to attract strong investor support in the debt markets. With a debt-to-equity ratio of 2.2:1, we are in a strong position to continue purchasing both new and used containers to meet market demand and maintain our industry leading position.
Dividend
On August 5, 2011, Textainer’s board of directors approved and declared a quarterly cash dividend of $0.33 per share on Textainer’s issued and outstanding common shares, payable on August 26, 2011 to shareholders of record as of August 19, 2011. This dividend is an increase of $0.02 per share from the prior quarter and will continue Textainer’s history of paying constant or higher dividends every quarter since our October 2007 initial public offering. Combined, these dividends have averaged 45% of net income attributable to Textainer Group Holdings Limited common shareholders excluding unrealized losses on interest rate swaps, net and gain on sale of containers to NCI(1) during this period. The current dividend represents 40% of net income attributable to Textainer Group Holdings Limited common shareholders excluding unrealized losses on interest rate swaps, net and gain on sale of containers to NCI(1) for the second quarter.
Investors’ Webcast
Textainer will hold a conference call and a Webcast with an accompanying slide presentation at 11:00 am EDT on Tuesday, August 9, 2011 to discuss Textainer’s 2011 second quarter results. An archive of the Webcast will be available one hour after the live call through August 9, 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 more than 1.6 million containers, representing more than 2.4 million TEU, in our owned and managed fleet. We lease containers to approximately 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 during the last calendar 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 that it will continue to provide its shareholders with a sizeable contracted revenue stream; (ii) Textainer’s belief that, unless the traditional peak season occurs during August and September, it is unlikely that Textainer will order new standard dry-freight containers for the next few months; (iii) Textainer’s belief that, at this point, it expects that high in-fleet utilization will continue through at least the remainder of 2011; (iv) the timing for deliveries of new standard dry-freight containers and new refrigerated containers; and (v) Textainer’s belief that it is in a strong position to continue purchasing both new and used containers to meet market demand and maintain its industry leading position. 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: any deceleration or reversal of the current domestic and global economic recoveries may materially and negatively impact our business, results of operations, cash flows, financial condition and future prospects; lease rates may decrease, which could harm our business, results of operations and financial condition and lessee defaults may harm our business, results of operations and financial condition by decreasing revenue and increasing storage, repositioning, collection and recovery expenses; we own a large and growing number of containers in our fleet and are subject to significant ownership risk; further consolidation of container manufacturers or the disruption of manufacturing for the major manufacturers could result in higher new container prices and/or decreased supply of new containers and any increase in the cost or reduction in the supply of new containers could harm our business, results of operations and financial condition; the demand for leased containers depends on many political and economic factors beyond Textainer's control; the demand for leased containers is partially tied to international trade and if this demand were to decrease due to increased barriers to trade, or for any other reason, it could reduce demand for intermodal container leasing, which would harm our business, results of operations and financial condition; as we increase the number of containers in our owned fleet, we will have significant capital at risk and may need to incur more debt, which could result in financial instability; Textainer faces extensive competition in the container leasing industry; the international nature of the container shipping industry exposes Textainer to numerous risks; gains and losses associated with the disposition of used equipment may fluctuate and adversely affect our business, results of operations and financial condition; 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 18, 2011.
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 | ||||||||
| June 30, 2011 and December 2010 | ||||||||
| (Unaudited) | ||||||||
| (All currency expressed in United States dollars in thousands) | ||||||||
| 2011 |
2010 |
|||||||
|
|
|
|||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 77,162 | $ | 57,081 | ||||
|
Accounts receivable, net of allowance for doubtful accounts of $9,281 and $8,653 in 2011 and 2010, respectively |
79,639 | 63,511 | ||||||
| Net investment in direct financing and sales-type leases | 23,094 | 19,117 | ||||||
| Trading containers | 2,956 | 404 | ||||||
| Containers held for resale | 2,030 | 2,883 | ||||||
| Prepaid expenses | 11,448 | 8,603 | ||||||
| Deferred taxes | 1,896 | 1,895 | ||||||
| Due from affiliates, net | 5 | - | ||||||
| Total current assets | 198,230 | 153,494 | ||||||
| Restricted cash | 35,941 | 15,034 | ||||||
|
Containers, net of accumulated depreciation of $354,961 and $361,791 at 2011 and 2010, respectively |
1,833,678 | 1,437,259 | ||||||
| Net investment in direct financing and sales-type leases | 74,886 | 72,224 | ||||||
|
Fixed assets, net of accumulated depreciation of $9,186 and $8,820 at 2011 and 2010, respectively |
1,885 | 1,804 | ||||||
|
Intangible assets, net of accumulated amortization of $30,679 and $27,441 at 2011 and 2010, respectively |
49,438 | 60,122 | ||||||
| Interest rate swaps | 344 | 1,320 | ||||||
| Other assets | 8,620 | 5,950 | ||||||
| Total assets | $ | 2,203,022 | $ | 1,747,207 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,558 | $ | 6,296 | ||||
| Accrued expenses | 9,568 | 11,988 | ||||||
| Container contracts payable | 154,237 | 98,731 | ||||||
| Deferred revenue | 8,408 | 6,855 | ||||||
| Due to owners, net | 13,975 | 17,545 | ||||||
| Bonds payable | 91,500 | 51,500 | ||||||
| Total current liabilities | 283,246 | 192,915 | ||||||
| Revolving credit facility | 201,000 | 104,000 | ||||||
| Secured debt facility | 540,372 | 558,127 | ||||||
| Bonds payable | 509,904 | 175,570 | ||||||
| Deferred revenue | 1,598 | 2,994 | ||||||
| Interest rate swaps | 14,847 | 13,581 | ||||||
| Income tax payable | 23,441 | 20,821 | ||||||
| Deferred taxes | 8,089 | 8,632 | ||||||
| Total liabilities | 1,582,497 | 1,076,640 | ||||||
| Equity: | ||||||||
| Textainer Group Holdings Limited shareholders' equity: | ||||||||
|
Common shares, $0.01 par value. Authorized 140,000,000 shares; issued and outstanding 48,921,943 and 48,318,058 at 2011 and 2010, respectively |
489 | 483 | ||||||
| Additional paid-in capital | 158,504 | 181,602 | ||||||
| Accumulated other comprehensive loss | 69 | (52 | ) | |||||
| Retained earnings | 461,463 | 401,849 | ||||||
| Total Textainer Group Holdings Limited shareholders’ equity | 620,525 | 583,882 | ||||||
| Noncontrolling interest | - | 86,685 | ||||||
| Total equity | 620,525 | 670,567 | ||||||
| Total liabilities and equity | $ | 2,203,022 | $ | 1,747,207 | ||||
| TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | ||||||||||||||||
| Condensed Consolidated Statements of Income | ||||||||||||||||
| Three and Six Months Ended June 30, 2011 and 2010 | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (All currency expressed in United States dollars in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenues: | ||||||||||||||||
| Lease rental income | $ | 83,049 | $ | 56,741 | $ | 155,408 | $ | 106,322 | ||||||||
| Management fees | 7,615 | 6,897 | 15,299 | 13,305 | ||||||||||||
| Trading container sales proceeds | 5,655 | 3,618 | 10,420 | 7,635 | ||||||||||||
| Gains on sale of containers, net | 9,417 | 7,376 | 15,811 | 16,990 | ||||||||||||
| Total revenues | 105,736 | 74,632 | 196,938 | 144,252 | ||||||||||||
| Operating expenses (income): | ||||||||||||||||
| Direct container expense | 4,315 | 7,965 | 8,273 | 17,341 | ||||||||||||
| Cost of trading containers sold | 5,024 | 2,919 | 9,190 | 6,081 | ||||||||||||
| Depreciation expense | 24,001 | 13,188 | 42,867 | 26,031 | ||||||||||||
| Amortization expense | 1,574 | 1,575 | 3,332 | 3,152 | ||||||||||||
| General and administrative expense | 6,043 | 5,601 | 12,241 | 10,949 | ||||||||||||
| Short-term incentive compensation expense | 1,494 | 1,350 | 2,453 | 2,116 | ||||||||||||
| Long-term incentive compensation expense | 1,372 | 1,063 | 3,108 | 3,138 | ||||||||||||
| Bad debt expense (recovery), net | 408 | (205 | ) | 544 | (481 | ) | ||||||||||
| Gain on sale of containers to noncontrolling interest | (19,773 | ) | - | (19,773 | ) | - | ||||||||||
| Total operating expenses | 24,458 | 33,456 | 62,235 | 68,327 | ||||||||||||
| Income from operations | 81,278 | 41,176 | 134,703 | 75,925 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (9,011 | ) | (2,781 | ) | (16,534 | ) | (5,435 | ) | ||||||||
| Interest income | 7 | 3 | 14 | 6 | ||||||||||||
| Realized losses on interest rate swaps and caps, net | (2,765 | ) | (2,354 | ) | (5,407 | ) | (5,107 | ) | ||||||||
| Unrealized losses on interest rate swaps, net | (4,453 | ) | (4,728 | ) | (2,242 | ) | (6,328 | ) | ||||||||
| Other, net | (79 | ) | (279 | ) | (130 | ) | (337 | ) | ||||||||
|
Other expense, Net |
(16,301 | ) | (10,139 | ) | (24,299 | ) | (17,201 | ) | ||||||||
| Income before income tax and noncontrolling interest | 64,977 | 31,037 | 110,404 | 58,724 | ||||||||||||
| Income tax expense | (3,766 | ) | (2,654 | ) | (6,380 | ) | (3,268 | ) | ||||||||
|
Net income |
61,211 | 28,383 | 104,024 | 55,456 | ||||||||||||
| Less: Net income attributable to the noncontrolling interest | (9,514 | ) | (3,306 | ) | (15,137 | ) | (6,140 | ) | ||||||||
| Net income attributable to Textainer Group Holdings | ||||||||||||||||
|
Limited common shareholders |
$ | 51,697 | $ | 25,077 | $ | 88,887 | $ | 49,316 | ||||||||
|
Net income attributable to Textainer Group Holdings Limited common shareholders per share: |
||||||||||||||||
| Basic | $ | 1.06 | $ | 0.52 | $ | 1.82 | $ | 1.03 | ||||||||
| Diluted | $ | 1.03 | $ | 0.51 | $ | 1.78 | $ | 1.01 | ||||||||
| Weighted average shares outstanding (in thousands): | ||||||||||||||||
| Basic | 48,899 | 48,067 | 48,780 | 48,050 | ||||||||||||
| Diluted | 49,975 | 49,157 | 49,855 | 49,036 | ||||||||||||
| TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| Six Months Ended June 30, 2011 and 2010 | ||||||||
| (Unaudited) | ||||||||
| (All currency expressed in United States dollars in thousands) | ||||||||
|
Six Months Ended June 30, |
||||||||
| 2011 | 2010 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 104,024 | $ | 55,456 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation expense | 42,867 | 26,031 | ||||||
| Bad debt expense (recovery), net | 544 | (481 | ) | |||||
| Unrealized losses on interest rate swaps, net | 2,242 | 6,328 | ||||||
| Amortization of debt issuance costs | 3,679 | 1,019 | ||||||
| Amortization of intangible assets | 3,332 | 3,152 | ||||||
|
Amortization of acquired net (below) above-market leases |
(294 | ) | 283 | |||||
| Amortization of deferred revenue | (3,907 | ) | (3,573 | ) | ||||
| Amortization of unearned income on direct financing and sales-type leases | (4,551 | ) | (4,121 | ) | ||||
| Gains on sale of containers, net | (15,811 | ) | (16,990 | ) | ||||
| Gain on sale of containers to noncontrolling interest | (19,773 | ) | - | |||||
| Share-based compensation expense | 3,261 | 3,261 | ||||||
| Changes in operating assets and liabilities | (23,405 | ) | 2,925 | |||||
| Total adjustments | (11,816 | ) | 17,834 | |||||
| Net cash provided by operating activities | 92,208 | 73,290 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchase of containers and fixed assets | (527,085 | ) | (61,766 | ) | ||||
| Proceeds from sale of containers and fixed assets | 35,410 | |||||||
