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General Finance Corporation Reports First Quarter Results For Fiscal Year 2014

Stocks in this article: GFN

PASADENA, Calif., Nov. 12, 2013 (GLOBE NEWSWIRE) -- General Finance Corporation (Nasdaq:GFN), the parent company of businesses in the mobile storage, modular space and liquid containment industries (the "Company"), today announced its consolidated financial results for the first quarter ended September 30, 2013. The consolidated results include majority-owned Royal Wolf Holdings Limited ("Royal Wolf"), the leading provider of portable storage solutions in the Asia-Pacific regions of Australia and New Zealand, wholly-owned Pac-Van, Inc. ("Pac-Van"), a prominent regional provider of portable storage, office and liquid storage tank containers, mobile offices and modular buildings in North America, and 90%-owned Southern Frac, LLC ("Southern Frac"), a domestic manufacturer of portable liquid storage tank containers.

First Quarter 2014 Highlights

  • Total revenues were $65.7 million, an increase of 23% over the first quarter of fiscal year 2013, and included revenues of $3.4 million at Southern Frac, which was acquired on October 1, 2012.
  • Leasing revenues comprised 50% of total non-manufacturing revenues versus 56% for the first quarter of fiscal year 2013.
  • Adjusted EBITDA was $12.8 million, an increase of 2% over the first quarter of fiscal year 2013.
  • Adjusted EBITDA margin was 20%, compared to 23% in the first quarter of fiscal year 2013.
  • Net income attributable to common shareholders was $0.4 million, or $0.02 per share, compared to $1.0 million, or $0.04 per share, for the first quarter of fiscal year 2013.
  • Average fleet unit utilization at Royal Wolf was 80%.
  • Average fleet unit utilization at Pac-Van was 77%.
  • Completed three acquisitions during the quarter.

Management Commentary

"We are encouraged by our overall performance for the first quarter of fiscal year 2014, despite an unfavorable foreign exchange translation effect between periods on our financial results at Royal Wolf," said Ronald Valenta, President and Chief Executive Officer of General Finance Corporation. "Pac-Van delivered a strong financial performance by increasing revenues and adjusted EBITDA by 39% and 38%, respectively, and Royal Wolf reported an increase in revenues of 7%. However, the approximate 12% weakening in the Australian dollar relative to the U.S. dollar in the quarter, and other factors, such as a modest slow-down in the eastern seaboard of Australia and single digit operating margins on one-off sales to a freight logistics customer, resulted in lower than normal profitability at Royal Wolf." Mr. Valenta concluded by stating that "Southern Frac, our manufacturer of portable liquid storage tank containers, also delivered a solid quarter, generating net sales of $9.8 million and adjusted EBITDA of just over $1.0 million on a stand-alone basis."

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