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Textainer Group Holdings Limited Reports Fourth-Quarter And Full-Year 2013 Results And Declares 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, reported fourth-quarter 2013 results.

“The fourth quarter marked the close of a solid year for Textainer. Total revenues for 2013 increased by 9 percent to $529 million. Even more impressively, lease rental income grew 15 percent quarter-to-quarter and 22 percent year-to-year. EBITDA increased 9 percent for the year, in line with our revenue growth,” commented Philip K. Brewer, President and Chief Executive Officer of Textainer. “Adjusted net income (1) for the quarter declined to $43.4 million primarily due to declines in both utilization and gains on container sales and an increase in depreciation. Adjusted net income (1) for the year was $175 million providing a return on equity of 17.3 percent”.

“We invested $950 million in containers for delivery in 2013. Our fleet size grew by 10 percent over the past year, marking an industry milestone as we are the first lessor with a 3 million TEU fleet,” continued Mr. Brewer.

Business Highlights:

  • Continued our strong pace of expansion with $950 million of capex, including $752 million invested in new and used containers in 2013 following $198 million invested in new containers in the fourth quarter of 2012 for lease out in 2013;
  • Invested $165 million in new and used containers already in 2014;
  • Entered into a new contract with the US Department of Defense for the program management, leasing, transportation and repair of intermodal equipment; and
  • Acquired 30,000 TEU of standard dry freight containers from our managed fleet in January 2014 for $35 million, increasing the owned percentage of the total fleet to approximately 77 percent, the highest percentage in Company history.

Key Financial Information (in thousands except for per share and TEU amounts):

             
Q4 QTD Full-year
    2013   2012   % Change     2013   2012   % Change
Total revenues   $ 137,479     $ 127,284     8.0 %     $ 528,973     $ 487,094     8.6 %
Income from operations   $ 68,607     $ 71,357     -3.9 %     $ 281,055     $ 278,447     0.9 %
Net income attributable to Textainer Group Holdings Limited common shareholders   $ 45,545     $ 60,573     -24.8 %     $ 182,809     $ 206,950     -11.7 %
Net income attributable to Textainer Group Holdings Limited common shareholders per diluted common share   $ 0.80     $ 1.07     -25.2 %     $ 3.21     $ 3.96     -18.9 %
Adjusted net income (1)   $ 43,381     $ 58,219     -25.5 %     $ 175,029     $ 201,199     -13.0 %
Adjusted net income per diluted common share (1)   $ 0.76     $ 1.03     -26.2 %     $ 3.08     $ 3.85     -20.0 %
Adjusted EBITDA (1)   $ 108,566     $ 114,908     -5.5 %     $ 429,749     $ 395,330     8.7 %
Average fleet utilization     93.9 %     96.7 %   -2.9 %       94.5 %     97.2 %   -2.8 %
Total fleet size at end of period (TEU)                   3,040,454       2,775,034     9.6 %
Owned percentage of total fleet at end of period                   75.6 %     72.7 %   4.0 %

“Adjusted net income” and “adjusted EBITDA” are Non-GAAP Measures that are reconciled to GAAP measures in footnote 1. “Adjusted net income” is defined as net income attributable to Textainer Group Holdings Limited common shareholders before unrealized gains on interest rate swaps and caps, net and related impact of reconciling item on net income (loss) attributable to the noncontrolling interest (“NCI”). “Adjusted EBITDA” is defined as net income attributable to Textainer Group Holdings Limited common shareholders before interest income and interest expense, realized and unrealized losses (gains) on interest rate swaps and caps, net, income tax (benefit) expense, net income attributable to the NCI, depreciation expense and container impairment, amortization expense and related impact of reconciling items on net income (loss) attributable to the NCI. Footnote 1 provides certain qualifications and limitations on the use of Non-GAAP Measures.

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