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Textainer Group Holdings Limited Reports Record Fourth-Quarter And Full-Year 2011 Results And Increases Quarterly Dividend

Stocks in this article: TGH

All of Textainer’s financial results above were positively impacted by the following items in the fourth quarter 2011, compared to the year ago quarter:

  • 28.0% increase in the average size of the owned container fleet;
  • 1.7% increase in average per diem rental rates;
  • $2.3 million increase in net gain on container trading due to increased sales volume and average sales proceeds per container; and
  • An increase in estimated residual values, beginning July 1, 2011, used in the calculation of depreciation expense which resulted in $4.8 million less depreciation expense than would have been recorded using prior residual values.

These items were partially offset by increases in depreciation expense and interest expense due to the increase in the size of the owned container fleet and associated debt to fund this expansion.

All of Textainer’s financial results above were positively impacted by the following items for full-year 2011, compared to the prior year:

  • 29.5% increase in the average size of the owned container fleet;
  • 7.1% increase in average per diem rental rates;
  • 2.9 percentage point increase in utilization;
  • $2.5 million increase in net gain on container trading due to increased sales volume and average sales proceeds per container;
  • $7.2 million decrease in direct container expense primarily due to reduced storage expense;
  • An increase in estimated residual values, beginning July 1, 2011, used in the calculation of depreciation expense, which resulted in $9.5 million less depreciation expense than would have been recorded using prior residual values; and
  • A capital restructuring of our primary asset-owning subsidiary, Textainer Marine Containers Limited (“TMCL”), effective June 30, 2011, whereby our wholly-owned subsidiary, Textainer Limited, now owns 100% of TMCL, eliminating the related noncontrolling interest. The restructuring resulted in a $19.8 million gain on sale of containers to the prior noncontrolling interest holder. The gain was the result of recognizing the fair value of containers and direct financing and sales-type leases in excess of their book value exchanged for TMCL’s common shares at the time of the transaction. This was a noncash transaction.

These items were partially offset by increases in depreciation expense and interest expense due to the increase in the size of the owned container fleet and associated debt to fund this expansion.

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