This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Textainer Group Holdings Limited Reports Third-Quarter 2012 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 and caps, net and gain on sale of containers to NCI are both noncash items and unrealized (gains) losses on interest rate swaps and caps, net is a non-operating item. We believe Non-GAAP Measures provide useful information on our earnings from ongoing operations. We believe that adjusted 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;
  • Adjusted 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 Adjusted 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 Nine Months Ended
September 30, September 30,
2012 2011 2012 2011
(Dollars in thousands) (Dollars in thousands)
(Unaudited) (Unaudited)
Reconciliation of adjusted EBITDA:

Net income attributable to Textainer Group Holdings Limited common shareholders

$ 50,658 $ 45,800 $ 146,377 $ 134,687
Adjustments:
Interest income (40 ) (6 ) (103 ) (20 )
Interest expense 19,441 13,708 52,691 30,242
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
Income tax (benefit) expense (1,324 ) 1,131 5,121 7,511
Net (loss) income attributable to the noncontrolling interest (299 ) (295 ) (1,433 ) 14,842
Depreciation expense 26,941 18,809 71,322 61,676
Amortization expense 1,275 1,443 3,880 4,775
Gain on sale of containers to noncontrolling interest - - - (19,773 )

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

  (714 )   (257 )   (1,871 )   (4,869 )
Adjusted EBITDA $ 97,370   $ 86,612   $ 280,422   $ 242,999  
 
 
Net cash provided by operating activities $ 187,109 $ 158,998
Adjustments:
Bad debt expense, net (3,143 ) (2,225 )
Amortization of debt issuance costs (9,002 ) (5,878 )
Amortization of acquired net 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
Share-based compensation expense (6,010 ) (4,663 )
Interest income (103 ) (20 )
Interest expense 52,691 30,242
Realized losses on interest rate swaps and caps, net 7,622 8,170
Income tax (benefit) expense 5,121 7,511
Changes in operating assets and liabilities 7,283 18,433

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

  (1,871 )   (4,869 )
Adjusted EBITDA $ 280,422   $ 242,999  
 
  Three Months Ended   Nine Months Ended
September 30, September 30,
2012   2011 2012   2011
(Dollars in thousands) (Dollars in thousands)
(Unaudited) (Unaudited)
 
Reconciliation of adjusted net income:

Net income attributable to Textainer Group Holdings Limited common shareholders

$ 50,658 $ 45,800 $ 146,377 $ 134,687
Adjustments:
Unrealized (gains) losses on interest rate swaps and caps, net (1,111 ) 3,516 (3,184 ) 5,758
Gain on sale of containers to noncontrolling interest - - - (19,773 )

Impact of reconciling items on net (loss) income attributable to noncontrolling interest

  (83 )   -   (213 )   4,519  
Adjusted net income $ 49,464   $ 49,316 $ 142,980   $ 125,191  
 
Reconciliation of adjusted net income per diluted common share:
Net income attributable to Textainer Group Holdings

Limited common shareholders per diluted common share

$ 0.99 $ 0.92 $ 2.88 $ 2.70
Adjustments:
Unrealized (gains) losses on interest rate swaps and caps, net (0.02 ) 0.07 (0.06 ) 0.12
Gain on sale of containers to noncontrolling interest - - - (0.40 )

Impact of reconciling items on net (loss) income attributable to noncontrolling interest

 

-     -   -     0.09  
Adjusted net income per diluted common share $ 0.97   $ 0.99 $ 2.82   $ 2.51  




7 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG

Markets

DOW 17,686.57 +8.34 0.05%
S&P 500 2,059.40 +3.25 0.16%
NASDAQ 4,881.1070 +17.7450 0.36%

Partners Compare Online Brokers

Free Reports

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