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TheStreet Open House

Textainer Group Holdings Limited Reports Third-Quarter 2012 Results And Increases Quarterly Dividend

Stocks in this article: TGH

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 third quarter ended September 30, 2012.

Highlights:

  • Record quarterly revenues of $122.3 million, an increase of 11.7% from the prior year quarter;
  • Net income attributable to Textainer common shareholders was $50.7 million, or $0.99 per diluted common share, an increase of $4.9 million, or 10.6%, compared to the prior year quarter;
  • Adjusted EBITDA (1) of $97.4 million, a new record and an increase of 12.4% from the prior year quarter;
  • Utilization continued at very high levels, averaging 97.9% during the third quarter;
  • Continued strong pace of expansion, invested a record of more than $1.0 billion in new and used containers year to date, including more than $155 million of purchases from our managed fleet in the third quarter;
  • Textainer now owns 68.8% of its total fleet, also a new record;
  • Annualized 2012 return on equity of 24%, exceeding Textainer’s average annual return on equity of 23% since the Company’s October 2007 initial public offering;
  • Textainer paid a $0.42 per share dividend in the third quarter and declared a $0.44 per share dividend in the fourth quarter of 2012, an increase of 5% from the second quarter and an increase of 19% compared to the dividend paid in the fourth quarter of 2011, as well as the Company’s eleventh consecutive quarterly increase;
  • Completed a follow-on equity offering of 8,625,000 common shares at a price of $31.50 per share, of which 6,125,000 new common shares were sold by the Company and 2,500,000 existing common shares were sold by our largest shareholder; and
  • Increased the size of the revolving credit facility of Textainer Limited, our wholly owned subsidiary, from $205 million to $600 million at attractive pricing.

“We achieved record quarterly results as measured by a number of performance metrics,” commented Philip K. Brewer, President and Chief Executive Officer of Textainer. “Total revenues of $122.3 million and Adjusted EBITDA (1) of $97.4 million were both quarterly records for the Company, as we benefited from strategic investments in new dry and refrigerated containers, purchases of managed containers, and continued high utilization.”

“Equally as impressive, we set another record with more than $1 billion in capex year to date of which 91% was for our owned fleet,” continued Mr. Brewer. “We now own 69% of our total fleet, which is the highest level ever. Owning containers benefits our shareholders as we earn significantly more on owned containers than managed containers.”

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