This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

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 Statements of Comprehensive Income
Three and Nine Months Ended September 30, 2012 and 2011
(Unaudited)
(All currency expressed in United States dollars in thousands, except per share amounts)
                         
Three Months Ended September 30, Nine Months Ended September 30,
2012 2011 2012 2011
 
Revenues:
Lease rental income $ 97,494 $ 85,147 $ 277,173 $ 240,555
Management fees 6,195 7,397 20,289 22,696
Trading container sales proceeds 11,058 9,024 35,339 19,444
Gains on sale of containers, net   7,558     7,913     27,009     23,724  
Total revenues   122,305     109,481     359,810     306,419  
Operating expenses:
Direct container expense 5,425 4,480 17,589 12,753
Cost of trading containers sold 9,911 8,047 31,043 17,237
Depreciation expense 26,941 18,809 71,322 61,676
Amortization expense 1,275 1,443 3,880 4,775
General and administrative expense 5,496 5,801 17,041 18,042
Short-term incentive compensation expense 1,159 1,259 3,473 3,712
Long-term incentive compensation expense 1,551 1,356 5,229 4,464
Bad debt expense, net 682 1,681 3,143 2,225
Gain on sale of containers to noncontrolling interest   -     -     -     (19,773 )
Total operating expenses   52,440     42,876     152,720     105,111  
Income from operations   69,865     66,605     207,090     201,308  
Other income (expense):
Interest expense (19,441 ) (13,708 ) (52,691 ) (30,242 )
Interest income 40 6 103 20
Realized losses on interest rate swaps and caps, net (2,543 ) (2,763 ) (7,622 ) (8,170 )
Unrealized gains (losses) on interest rate swaps and caps, net 1,111 (3,516 ) 3,184 (5,758 )
Other, net   3     12     1     (118 )
Net other expense   (20,830 )   (19,969 )   (57,025 )   (44,268 )
Income before income tax and noncontrolling interest 49,035 46,636 150,065 157,040
Income tax benefit (expense)   1,324     (1,131 )   (5,121 )   (7,511 )
Net income 50,359 45,505 144,944 149,529
Less: Net loss (income) attributable to the noncontrolling interest   299   295   1,433   (14,842 )

Net income attributable to Textainer Group Holdings Limited common shareholders

$ 50,658 $ 45,800 $ 146,377 $ 134,687  
 

Net income attributable to Textainer Group Holdings Limited common shareholders per share:

Basic $ 1.01 $ 0.94 $ 2.94 $ 2.76
Diluted $ 0.99 $ 0.92 $ 2.88 $ 2.70
 
Weighted average shares outstanding (in thousands):
Basic 50,348 48,916 49,774 48,832
Diluted 51,199 49,692 50,743 49,809
 
Other comprehensive income:
Foreign currency translation adjustments   68     69     73     189  
Comprehensive income 50,427 45,574 145,017 149,718
Less: Comprehensive loss (income) attributable to the noncontrolling interest   299     295     1,433     (14,842 )
Comprehensive income attributable to Textainer Group Holdings
Limited common shareholders $ 50,726   $ 45,869   $ 146,450   $ 134,876  
 
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
September 30, 2012 and December 31, 2011
(Unaudited)
(All currency expressed in United States dollars in thousands)
           
2012 2011
Assets
Current assets:
Cash and cash equivalents $ 113,586 $ 74,816

Accounts receivable, net of allowance for doubtful accounts of $9,508 and $7,840 in 2012 and 2011, respectively

96,201 86,428

 

Net investment in direct financing and sales-type leases 30,627 25,075
Trading containers 12,054 12,970
Containers held for sale 9,660 7,832
Prepaid expenses 13,324 10,243
Deferred taxes 2,449 2,443
Due from affiliates, net   3   -  
Total current assets 277,904 219,807
Restricted cash 50,632 45,858

Containers, net of accumulated depreciation of $425,779 and $377,731 at 2012 and 2011, respectively

2,633,988 1,903,855
Net investment in direct financing and sales-type leases 110,754 85,121

Fixed assets, net of accumulated depreciation of $9,010 and $9,027 at 2012 and 2011, respectively

1,774 1,717

Intangible assets, net of accumulated amortization of $34,824 and $33,340 at 2012 and 2011, respectively

34,869 46,675
Other assets   16,833   7,171  
Total assets $ 3,126,754 $ 2,310,204  
Liabilities and Equity
Current liabilities:
Accounts payable $ 4,296 $ 2,616
Accrued expenses 11,617 18,491
Container contracts payable 160,149 25,510
Deferred revenue 1,841 6,245
Due to owners, net 16,776 15,812
Secured debt facility - 41,035
Bonds payable   131,500   91,500  
Total current liabilities 326,179 201,209
Revolving credit facilities 217,002 133,047
Secured debt facilities 825,000 779,383
Bonds payable 739,167 464,226
Deferred revenue - 1,136
Interest rate swaps and caps 12,926 16,110
Income tax payable 25,666 22,729
Deferred taxes   6,726   7,438  
Total liabilities   2,152,666   1,625,278  
Equity:
Textainer Group Holdings Limited shareholders' equity:

Common shares, $0.01 par value. Authorized 140,000,000 shares; issued and outstanding 55,749,610 and 48,951,114 at 2012 and 2011, respectively

557 490
Additional paid-in capital 352,892 154,460
Accumulated other comprehensive loss 44 (28 )
Retained earnings   616,340   528,906  
Total Textainer Group Holdings Limited shareholders’ equity 969,833 683,828
Noncontrolling interest   4,255   1,098  
Total equity   974,088   684,926  
Total liabilities and equity $ 3,126,754 $ 2,310,204  
 
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
Nine Months Ended September 30, 2012 and 2011
(Unaudited)
(All currency expressed in United States dollars in thousands)
 
              Nine Months Ended

September 30,

2012   2011
Cash flows from operating activities:
Net income $ 144,944   $ 149,529  
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense 71,322 61,676
Bad debt expense, net 3,143 2,225
Unrealized (gains) losses on interest rate swaps and caps, net (3,184 ) 5,758
Amortization of debt issuance costs 9,002 5,878
Amortization of intangible assets 3,880 4,775
Amortization of acquired below-market leases (33 ) (353 )
Amortization of deferred revenue (5,293 ) (6,425 )
Amortization of unearned income on direct financing and sales-type leases (8,390 ) (6,798 )
Gains on sale of containers, net (27,009 ) (23,724 )
Gain on sale of containers to noncontrolling interest - (19,773 )
Share-based compensation expense 6,010 4,663
Changes in operating assets and liabilities   (7,283 )   (18,433 )
Total adjustments   42,165     9,469  
Net cash provided by operating activities   187,109     158,998  
Cash flows from investing activities:
Purchase of containers and fixed assets (758,868 ) (761,191 )
Payment for Textainer Marine Containers Ltd. capital restructuring, net of cash acquired - (11,783 )
Proceeds from sale of containers and fixed assets 67,841 57,308
Receipt of principal payments on direct financing and sales-type leases   29,100     22,858  
Net cash used in investing activities   (661,927 )   (692,808 )
Cash flows from financing activities:
Proceeds from revolving credit facilities 209,530 166,000
Principal payments on revolving credit facilities (125,575 ) (134,000 )
Proceeds from secured debt facilities 839,000 591,000
Principal payments on secured debt facilities (834,697 ) (353,802 )
Proceeds from bonds payable 400,000 400,000
Principal payments on bonds payable (85,292 ) (48,625 )
Increase in restricted cash (4,774 ) (27,031 )
Debt issuance costs (23,113 ) (8,312 )
Issuance of common shares upon exercise of share options 4,605 5,840
Issuance of common shares in public offering 185,220 -
Excess tax benefit from share-based compensation awards 2,965 3,491
Capital contributions from noncontrolling interest 4,589 749
Dividends paid   (58,943 )   (45,421 )
Net cash provided by financing activities   513,515     549,889  
Effect of exchange rate changes   73     189  
Net increase in cash and cash equivalents 38,770 16,268
Cash and cash equivalents, beginning of the year   74,816     57,081  
Cash and cash equivalents, end of period $ 113,586   $ 73,349  
 

TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIESReconciliation of GAAP financial measures to non-GAAP financial measuresThree and Nine Months Ended September 30, 2012 and 2011(Unaudited)(All currency expressed in United States dollars in thousands, except per share amounts)

(1)   The following is a reconciliation of certain GAAP measures to non-GAAP financial measures (such items listed in (a) to (d) below and defined as “Non-GAAP Measures”) for the three and nine months ended September 30, 2012 and 2011, including:

 

(a)

net income attributable to Textainer Group Holdings Limited common shareholders to adjusted EBITDA (Adjusted EBITDA defined as net income attributable to Textainer Group Holdings Limited common shareholders before interest income and interest expense, realized and unrealized losses on interest rate swaps and caps, net, income tax (benefit) expense, net (loss) income attributable to the noncontrolling interest (“NCI”), depreciation and amortization expense, gain on sale of containers to NCI and the related impact of reconciling items on net (loss) income attributable to the NCI);

 

(b)

net cash provided by operating activities to Adjusted EBITDA;

 

(c)

net income attributable to Textainer Group Holdings Limited common shareholders to adjusted net income (defined as net income attributable to Textainer Group Holdings Limited common shareholders before unrealized (gains) losses on interest rate swaps and caps, net, gain on sale of containers to NCI and the related impact of reconciling items on net (loss) income attributable to the NCI); and

 

(d)

net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share to adjusted net income per diluted common share (defined as net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share before unrealized (gains) losses on interest rate swaps and caps, net, gain on sale of containers to NCI and the related impact of reconciling items on net (loss) income attributable to the NCI).

Non-GAAP Measures are not financial measures calculated in accordance with U.S. generally accepted accounting principles ("GAAP") and should not be considered as an alternative to net income, income from operations or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating activities as a measure of our liquidity. Non-GAAP Measures are presented solely as supplemental disclosures. Management believes that adjusted EBITDA may be a useful performance measure that is widely used within our industry and adjusted net income may be a useful performance measure because Textainer intends to hold its interest rate swaps until maturity and over the life of an interest rate swap or cap held to maturity the unrealized (gains) losses will net to zero. Adjusted EBITDA is not calculated in the same manner by all companies and, accordingly, may not be an appropriate measure for comparison.

6 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,916.03 -69.58 -0.41%
S&P 500 1,965.32 -7.51 -0.38%
NASDAQ 4,398.00 -21.0340 -0.48%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs