TAL International Group, Inc. Reports Second Quarter 2014 Results

TAL International Group, Inc. (NYSE:TAL), one of the world’s largest lessors of intermodal freight containers and chassis, today reported results for the second quarter ended June 30, 2014.

Highlights:
  • TAL reported Adjusted pre-tax income of $1.45 per fully diluted common share for the second quarter of 2014, a decrease of 12.7% from the second quarter of 2013.
  • TAL reported leasing revenues of $144.7 million for the second quarter of 2014, an increase of 3.2% from the second quarter of 2013.
  • TAL continues to achieve strong operational performance. Utilization increased 0.8% during the quarter and averaged 97.3% for the second quarter of 2014.
  • TAL announced a quarterly dividend of $0.72 per share payable on September 24, 2014 to shareholders of record as of September 3, 2014.

Financial Results

The following table depicts TAL’s selected key financial information for the three and six months ended June 30, 2014 and 2013 (dollars in millions, except per share data):
           
Three Months Ended June 30,   Six Months Ended June 30,

2014
 

2013
 

% Change

2014
 

2013
 

% Change
Adjusted pre-tax income(1) $ 48.9 $ 55.9 (12.5 %) $ 96.4 $ 110.7 (12.9 %)
Adjusted pre-tax income(1) per share $ 1.45 $ 1.66 (12.7 %) $ 2.85 $ 3.29 (13.4 %)
Leasing revenues $ 144.7 $ 140.2 3.2 % $ 289.5 $ 278.0 4.1 %
Adjusted EBITDA(1) $ 142.1 $ 144.6 (1.7 %) $ 283.1 $ 286.5 (1.2 %)
Adjusted net income(1) $ 32.2 $ 36.1 (10.8 %) $ 63.2 $ 71.6 (11.7 %)
Adjusted net income(1) per share $ 0.95 $ 1.07 (11.2 %) $ 1.87 $ 2.13 (12.2 %)
Net income $ 29.4 $ 37.9 (22.4 %) $ 59.4 $ 75.4 (21.2 %)
Net income per share $ 0.87   $ 1.12   (22.3 %)   $ 1.76     $ 2.24     (21.4 %)
Note: All per share data is per fully diluted common share.
 

The Company focuses on adjusted pre-tax results since it considers gains and losses on interest rate swaps and the write-off of deferred financing costs to be unrelated to operating performance and since it does not expect to pay any significant income taxes for a number of years due to the availability of accelerated tax depreciation on its existing container fleet and anticipated future equipment purchases.

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