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Textainer Group Holdings Limited Reports Fourth-Quarter And Full-Year 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 fourth quarter and full year ended December 31, 2012.

Highlights:

  • We achieved record capex, revenue, net income attributable to Textainer common shareholders, adjusted net income (1) and adjusted EBITDA (1) for the quarter and full year;
  • Continued strong pace of expansion, invested a record of $1.2 billion of total fleet capex in new and used containers for the year, including $192 million of purchases from our managed fleet;
  • Revenues of $127.3 million for the quarter, an increase of 9.4% from the prior year quarter, and $487.1 million for the full year, an increase of 15.2% from the prior year;
  • Net income attributable to Textainer common shareholders of $60.6 million, or $1.07 per diluted common share, for the quarter, an increase of 10.3%, from the prior year quarter, and $207.0 million, or $3.96 per diluted common share, for the full year, an increase of 9.1% from the prior year;
  • Adjusted net income (1) of $58.2 million, or $1.03 per diluted common share, for the quarter, an increase of 9.8% from the prior year quarter, and $201.2 million, or $3.85 per diluted common share, for the full year, an increase of 12.9% from the prior year;
  • Adjusted EBITDA (1) of $114.9 million for the quarter, an increase of 28.8% from the prior year quarter, and $395.3 million for the full year, an increase of 19.0% from the prior year;
  • Utilization continued at very high levels, averaging 96.7% during the fourth quarter and 97.2% for 2012;
  • Acquired a majority interest in TAP Funding Ltd., a company that owns 99,000 TEU of containers managed by Textainer and recorded a bargain purchase gain of $9.4 million;
  • Textainer now owns 73% of its total fleet, the highest percentage in Company history;
  • Annual 2012 return on equity of 26%, exceeding Textainer’s average annual return on equity of 23% since the Company’s October 2007 initial public offering; and
  • Textainer paid a $0.44 per share dividend in the fourth quarter and declared a $0.45 per share dividend in the first quarter of 2013, the Company’s twelfth consecutive quarterly increase.

“The fourth quarter marked the close of a phenomenal year for Textainer. We reported record quarterly revenue of $127 million, record adjusted net income (1) of $58 million and record adjusted EBITDA (1) of $115 million,” commented Philip K. Brewer, President and Chief Executive Officer of Textainer. “Not only did we achieve record performance for the quarter, but for the year as well with record revenues, income, and adjusted net income. We also set a new Textainer benchmark with $1.2 billion of annual capex in new and used containers. We also increased our dividend for the twelfth consecutive quarter. We are extremely pleased with Textainer’s performance.”

“We now own 73% of our total fleet reflecting our success in rapidly deploying capital raised during our September equity offering on revenue generating assets,” continued Mr. Brewer. “Owning containers increases the value we deliver to our shareholders as we earn significantly more on owned containers than managed containers. Our 26% return on equity, which is impressive given that we are the least leveraged of all public container leasing companies, is a result of our focus on investing in immediately accretive assets that provide strong returns.”

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