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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Textainer Group Holdings Limited Reports Second Quarter 2013 Results And Increases Quarterly Dividend

Stocks in this article: TGH

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 Six Months Ended June 30, 2013 and 2012
(Unaudited)
(All currency expressed in United States dollars in thousands, except per share amounts)
 
  Three Months Ended June 30,     Six Months Ended June 30,
2013   2012 2013   2012
 
Revenues:
Lease rental income $ 115,370 $ 91,791 $ 228,597 $ 179,679
Management fees 4,949 7,293 10,232 14,094
Trading container sales proceeds 2,102 12,744 4,895 24,281

Gains on sale of containers, net

  7,663     8,162     15,123     19,451  
Total revenues   130,084     119,990     258,847     237,505  
Operating expenses:
Direct container expense 10,134 6,104 19,138 12,164
Cost of trading containers sold 1,745 11,130 4,210 21,132
Depreciation expense 33,833 22,801 66,516 44,381
Amortization expense 1,088 1,299 2,175 2,605
General and administrative expense 6,167 5,822 12,604 11,545
Short-term incentive compensation expense 685 1,322 1,372 2,314
Long-term incentive compensation expense 1,134 1,524 2,214 3,678
Bad debt expense, net   3,237     743     2,487     2,461  
Total operating expenses   58,023     50,745     110,716     100,280  
Income from operations   72,061     69,245     148,131     137,225  
Other income (expense):
Interest expense (20,894 ) (18,531 ) (42,523 ) (33,250 )
Interest income 31 35 69 63
Realized losses on interest rate swaps and caps, net (2,089 ) (2,529 ) (4,479 ) (5,079 )
Unrealized gains on interest rate swaps and caps, net 3,981 1,025 6,268 2,073
Other, net   (10 )   (1 )   (29 )   (2 )
Net other expense   (18,981 )   (20,001 )   (40,694 )   (36,195 )
Income before income tax and noncontrolling interest 53,080 49,244 107,437 101,030
Income tax expense   (2,240 )   (4,122 )   (6,781 )   (6,445 )
Net income 50,840 45,122 100,656 94,585
Less: Net (income) loss attributable to the noncontrolling interest   (2,025 )   687   (3,507 )   1,134

Net income attributable to Textainer Group Holdings Limited common shareholders

$ 48,815   $ 45,809 $ 97,149   $ 95,719
 

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

Basic $ 0.87 $ 0.92 $ 1.73 $ 1.93
Diluted $ 0.86 $ 0.91 $ 1.71 $ 1.90
 
Weighted average shares outstanding (in thousands):
Basic 56,298 49,543 56,266 49,484
Diluted 56,875 50,358 56,840 50,442
 
Other comprehensive income:
Foreign currency translation adjustments   (37 )   (72 )   (134 )   5  
Comprehensive income 50,803 45,050 100,522 94,590

Comprehensive (income) loss attributable to the noncontrolling interest

  (2,025 )   687     (3,507 )   1,134  

Comprehensive income attributable to Textainer Group Holdings Limited common shareholders

$ 48,778   $ 45,737   $ 97,015   $ 95,724  
 
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
June 30, 2013 and December 31, 2012
(Unaudited)
(All currency expressed in United States dollars in thousands)
   
2013 2012
Assets
Current assets:
Cash and cash equivalents $ 92,755 $ 100,127

Accounts receivable, net of allowance for doubtful accounts of $9,455 and $8,025 in 2013 and 2012, respectively

95,543 94,102
Net investment in direct financing and sales-type leases 58,713 43,253
Trading containers 19,059 7,296
Containers held for sale 27,661 15,717
Prepaid expenses 11,929 14,006
Deferred taxes 2,299 2,332
Due from affiliates, net   3     4,377
Total current assets 307,962 281,210
Restricted cash 46,010 54,945

Containers, net of accumulated depreciation of $502,246 and $490,930 at 2013 and 2012, respectively

3,020,035 2,916,673
Net investment in direct financing and sales-type leases 218,498 173,634

Fixed assets, net of accumulated depreciation of $8,484 and $9,189 at 2013 and 2012, respectively

1,641 1,621

Intangible assets, net of accumulated amortization of $29,137 and $26,963 at 2013 and 2012, respectively

31,208 33,383
Interest rate swaps and caps 811 -
Other assets   16,265     14,614
Total assets $ 3,642,430   $ 3,476,080
Liabilities and Equity
Current liabilities:
Accounts payable $ 6,951 $ 4,451
Accrued expenses 9,373 14,329
Container contracts payable 23,988 87,708
Deferred revenue and other 428 1,681
Due to owners, net 13,661 13,218
Bonds payable   131,500     131,500
Total current liabilities 185,901 252,887
Revolving credit facilities 797,061 549,911
Secured debt facility 870,100 874,000
Bonds payable 640,542 706,291
Interest rate swaps and caps 5,362 10,819
Income tax payable 16,645 27,580
Deferred taxes 19,335 5,249
Other liabilities   3,304     3,210
Total liabilities   2,538,250     2,429,947
Equity:
Textainer Group Holdings Limited shareholders' equity:

Common shares, $0.01 par value. Authorized 140,000,000 shares; issued and outstanding 56,316,678 and 55,754,529 at 2013 and 2012, respectively

563 558
Additional paid-in capital 361,339 354,448
Accumulated other comprehensive income (20 ) 114
Retained earnings   698,323     652,383
Total Textainer Group Holdings Limited shareholders’ equity 1,060,205 1,007,503
Noncontrolling interest   43,975     38,630
Total equity   1,104,180     1,046,133
Total liabilities and equity $ 3,642,430   $ 3,476,080
 
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
Six Months Ended June 30, 2013 and 2012
(Unaudited)
(All currency expressed in United States dollars in thousands)
   
Six Months Ended

June 30,

2013 2012
 
Cash flows from operating activities:
Net income $ 100,656   $ 94,585  
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense 66,516 44,381
Bad debt expense, net 2,487 2,461
Unrealized gains on interest rate swaps and caps, net (6,268 ) (2,073 )
Amortization of debt issuance costs 5,985 6,370
Amortization of intangible assets 2,175 2,605
Amortization of acquired net below-market leases - (33 )
Amortization of deferred revenue (970 ) (4,532 )
Amortization of unearned income on direct financing and sales-type leases (10,679 ) (5,407 )
Gains on sale of containers, net (15,123 ) (19,451 )
Share-based compensation expense 2,557 4,190
Changes in operating assets and liabilities   (10,284 )   (14,571 )
Total adjustments   36,396     13,940  
Net cash provided by operating activities   137,052     108,525  
Cash flows from investing activities:
Purchase of containers and fixed assets (376,002 ) (316,021 )
Proceeds from sale of containers and fixed assets 58,678 47,563
Receipt of principal payments on direct financing and sales-type leases   37,240     18,157  
Net cash used in investing activities   (280,084 )   (250,301 )
Cash flows from financing activities:
Proceeds from revolving credit facilities 258,368 150,530
Principal payments on revolving credit facilities (11,218 ) (123,993 )
Proceeds from secured debt facility 34,100 654,000
Principal payments on secured debt facility (38,000 ) (832,697 )
Proceeds from bonds payable - 400,000
Principal payments on bonds payable (65,749 ) (52,418 )
Decrease (increase) in restricted cash 8,935 (770 )
Debt issuance costs (5,610 ) (18,500 )
Issuance of common shares upon exercise of share options 2,048 3,763
Excess tax benefit from share-based compensation awards 2,291 2,707
Capital contributions from noncontrolling interest 1,838 4,589
Dividends paid   (51,209 )   (38,104 )
Net cash provided by financing activities   135,794     149,107  
Effect of exchange rate changes   (134 )   5  
Net (decrease) increase in cash and cash equivalents (7,372 ) 7,336
Cash and cash equivalents, beginning of the year   100,127     74,816  
Cash and cash equivalents, end of period $ 92,755   $ 82,152  
 

TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIESReconciliation of GAAP financial measures to non-GAAP financial measuresThree and Six Months Ended June 30, 2013 and 2012(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 six months ended June 30, 2013 and 2012, including:

5 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!

Markets

DOW 17,600.58 +243.71 1.40%
S&P 500 2,039.19 +26.30 1.31%
NASDAQ 4,705.8910 +61.5790 1.33%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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