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General Finance Corporation Reports Fourth Quarter And Full Year 2011 Results

Stocks in this article: GFN

General Finance Corporation (NASDAQ: GFN), a holding company that acquires, operates and enhances value for businesses in the mobile storage container and modular space industries, today announced its consolidated financial results for the fourth quarter and fiscal year ended June 30, 2011. The consolidated results include results from majority-owned Royal Wolf Holdings Limited (“Royal Wolf”), the leading provider of portable storage solutions in the Asia-Pacific regions of Australia and New Zealand, and wholly-owned Pac-Van, Inc., a prominent regional provider of portable storage and office containers, mobile offices and modular buildings in the United States.

Fourth Quarter 2011

  • Total revenues were $50.6 million, an increase of 16% over the fourth quarter of 2010.
  • Leasing revenues comprised 47% of total revenues versus 45% for the fourth quarter of 2010.
  • Adjusted EBITDA was $10.9 million, an increase of 33% over the fourth quarter of 2010.
  • Net loss attributable to common shareholders was $14.7 million, or $0.67 per share, including goodwill impairment of $5.9 million.
  • Australian IPO by Royal Wolf raised net proceeds of $92.4 million, providing capital at the holding company level and reducing total company debt by over $64 million, including $15 million at Pac-Van.
  • Total lease fleet utilization increased to 82% at June 30, 2011, from 81% at March 31, 2011 and 79% at June 30, 2010.

Fiscal Year 2011

  • Total revenues were $182.3 million, an increase of 17% over fiscal year 2010.
  • Leasing revenues comprised 49% of total revenues for both fiscal years 2011 and 2010.
  • Adjusted EBITDA was $38.0 million, an increase of 21% over fiscal year 2010.
  • Net loss attributable to common shareholders was $15.9 million, or $0.72 per share, including goodwill impairment of $5.9 million.
  • Average fleet utilization at Royal Wolf was 85% versus 78% in fiscal year 2010.
  • Average fleet utilization at Pac-Van was 74% versus 69% in fiscal year 2010.

Management Commentary

“While 2011 brought its challenges, it was also a year of meaningful accomplishments for General Finance,” said Ronald Valenta, President and Chief Executive Officer. “Royal Wolf benefitted significantly from a thriving Australian economy driven by strength in resources, defense and construction, and in May 2011, successfully completed an IPO in Australia, raising $92 million of new capital. With its market-leading position and improved financial position from the offering, Royal Wolf is poised to continue to capitalize on new organic and acquisitive growth opportunities in fiscal 2012 and beyond. While Pac-Van’s business showed a modest decline in 2011 compared to the prior year, it began showing signs of stabilization during the fourth quarter, and we believe a gradual recovery may occur in fiscal 2012, particularly in non-construction sectors.”

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