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

Management also believes that Adjusted net income and Adjusted net income per diluted common share are useful in evaluating our operating performance because unrealized (gains) losses on interest rate swaps, net and gain on sale of containers to NCI are both noncash items and unrealized (gains) losses on interest rate swaps is a non-operating item. We believe Non-GAAP Measures provide useful information on our earnings from ongoing operations. We believe that 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;
  • EBITDA does not reflect interest expense or cash requirements necessary to service interest or principal payments on our debt;
  • Although depreciation is a noncash charge, the assets being depreciated may be replaced in the future, and neither 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 Years Ended
December 31, December 31,
  2011     2010     2011     2010  
(Dollars in thousands) (Dollars in thousands)
(Unaudited) (Unaudited)
Reconciliation of EBITDA:

Net income attributable to Textainer Group Holdings Limited common shareholders

$ 54,919 $ 40,047 $ 189,606 $ 120,031
Adjustments:
Interest income (12 ) (13 ) (32 ) (27 )
Interest expense 14,649 6,658 44,891 18,151
Realized losses on interest rate swaps and caps, net 2,654 2,445 10,824 9,844
Unrealized (gains) losses on interest rate swaps, net (1,909 ) (5,495 ) 3,849 4,021
Income tax (benefit) expense (3,030 ) 1,274 4,481 4,493
Net (loss) income attributable to the noncontrolling interest (430 ) 4,841 14,412 13,733
Depreciation expense 21,501 18,050 83,177 58,972
Amortization expense 1,335 1,756 6,110 6,544
Gain on sale of containers to noncontrolling interest - - (19,773 ) -

Impact of reconciling items on net income attributable to the noncontrolling interest

  (464 )   (4,263 )   (5,333 )   (16,767 )
EBITDA $ 89,213   $ 65,300   $ 332,212   $ 218,995  
 
 
Net cash provided by operating activities $ 213,345 $ 163,883
Adjustments:
Bad debt expense, net (3,007 ) (145 )
Amortization of debt issuance costs (8,101 ) (4,399 )
Amortization of acquired below (above)-market leases 411 (26 )
Amortization of deferred revenue 9,181 7,082
Amortization of unearned income on direct financing and sales-type leases

9,055

7,853
Gains on sale of containers, net 31,631 27,624
Share-based compensation expense (6,177 ) (5,457 )
Interest income (32 ) (27 )
Interest expense 44,891 18,151
Realized losses on interest rate swaps and caps, net 10,824 9,844
Income tax expense 4,481 4,493
Changes in operating assets and liabilities 31,043 6,886

Impact of reconciling items on net income attributable to the noncontrolling interest

  (5,333 )   (16,767 )
EBITDA $ 332,212   $ 218,995  
  Three Months Ended   Years Ended
December 31, December 31,
  2011       2010     2011       2010  
(Dollars in thousands) (Dollars in thousands)
(Unaudited) (Unaudited)
Reconciliation of Adjusted net income:

 

Net income attributable to Textainer Group Holdings Limited common shareholders

$ 54,919 $ 40,047 $ 189,606 $ 120,031
Adjustments:
Unrealized (gains) losses on interest rate swaps, net (1,909 ) (5,495 ) 3,849 4,021
Gain on sale of containers to noncontrolling interest - - (19,773 ) -

Impact of reconciling items on net income attributable to noncontrolling interest

  (2 )   1,149     4,517     (601 )
Adjusted net income $ 53,008   $ 35,701   $ 178,199   $ 123,451  
 
Reconciliation of Adjusted net income per diluted common share:
Net income attributable to Textainer Group Holdings

Limited common shareholders per diluted common share

$ 1.10 $ 0.81 $ 3.80 $ 2.43
Adjustments:
Unrealized (gains) losses on interest rate swaps, net (0.04 ) (0.11 ) 0.08 0.08
Gain on sale of containers to noncontrolling interest - - (0.39 ) -

Impact of reconciling items on net income attributable to noncontrolling interest

  -     0.02     0.09     (0.01 )
Adjusted net income per diluted common share $ 1.06   $ 0.72   $ 3.58   $ 2.50  




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