Key Financial Information (in thousands except for per share and TEU amounts) and Business Highlights:
QTD |
||||||||||||
Q1 2021 |
Q4 2020 |
Q1 2020 |
||||||||||
Lease rental income |
$ |
169,244 |
$ |
161,491 |
$ |
145,478 |
||||||
Gain on sale of owned fleet containers, net |
$ |
12,358 |
$ |
7,820 |
$ |
5,794 |
||||||
Income from operations |
$ |
92,101 |
$ |
71,816 |
$ |
46,409 |
||||||
Net income (loss) attributable to Limited common shareholders |
$ |
62,050 |
$ |
44,260 |
$ |
(4,379) |
||||||
Net income (loss) attributable to Limited common shareholders per diluted common share |
$ |
1.22 |
$ |
0.87 |
$ |
(0.08) |
||||||
Adjusted net income (1) |
$ |
59,152 |
$ |
41,147 |
$ |
9,702 |
||||||
Adjusted net income per diluted common share (1) |
$ |
1.16 |
$ |
0.81 |
$ |
0.17 |
||||||
Adjusted EBITDA (1) |
$ |
153,110 |
$ |
136,834 |
$ |
110,439 |
||||||
Average fleet utilization (2) |
99.6 |
% |
98.5 |
% |
96.2 |
% |
||||||
Total fleet size at end of period (TEU) (3) |
3,961,491 |
3,774,053 |
3,450,680 |
|||||||||
Owned percentage of total fleet at end of period |
90.2 |
% |
88.0 |
% |
85.6 |
% |
(1) |
Refer to the "Use of Non-GAAP Financial Information" set forth below. |
(2) |
Utilization is computed by dividing total units on lease in CEUs (cost equivalent unit) by the total units in our fleet in CEUs, excluding CEUs that have been designated as held for sale units and manufactured for us but have not yet been delivered to a lessee. CEU is a unit of measurement based on the approximate cost of a container relative to the cost of a standard 20-foot dry container. These factors may differ slightly from CEU ratios used by others in the industry. |
(3) |
TEU refers to a twenty-foot equivalent unit, which is a unit of measurement used in the container shipping industry to compare shipping containers of various lengths to a standard 20-foot container, thus a 20-foot container is one TEU and a 40-foot container is two TEU. |
- Net income of
$62.1 million for the first quarter or$1.22 per diluted common share, as compared to$44.3 million , or$0.87 per diluted common share in the fourth quarter of 2020; - Adjusted net income of
$59.2 million for the first quarter, or$1.16 per diluted common share, as compared to$41.1 million , or$0.81 per diluted common share in the fourth quarter of 2020; - Adjusted EBITDA of
$153.1 million for the first quarter, as compared to$136.8 million in the fourth quarter of 2020; - Utilization averaged 99.6% for the first quarter, and is currently at 99.7%;
- Invested
$580 million in containers delivered during the first quarter, virtually all of which are currently on lease; - As announced on
March 30, 2021 , issued$651 million of fixed-rate asset backed notes that closed onApril 20, 2021 . Proceeds were used to pay off the 2019-1 notes and to pay down variable-rate bank facilities, which will further lower our effective interest rate and create additional borrowing capacity for future container investment; - Repurchased 546,220 shares of common stock at an average price of
$19.68 per share during the first quarter under the share repurchase program. OnMay 1, 2021 ,Textainer's board of directors authorized an increase to the share repurchase program for an additional$50 million of the Company's outstanding shares; and - As announced on
April 14, 2021 , completed an underwritten public offering of 6,000,000 depositary shares, each representing a 1/1,000th interest in a share of its 7% Series A cumulative redeemable perpetual preference shares, for an aggregate public offering price of$150 million .Textainer's board of directors approved and declared a quarterly preferred cash dividend, payable onJune 15, 2021 , to holders of record as ofMay 31, 2021 .
"We are very pleased with our record first quarter results and revenue growth which confirms our strong turnaround. When adjusted for the fewer number of billing days, our lease rental income was 7% higher than in the prior quarter and 16% higher when compared to the first quarter of last year, a solid improvement achieved with unprecedented growth in profitable long-term leases of new containers. We also reported record adjusted EBITDA, which increased
"We continue to benefit from favorable market conditions underpinned by high trade volumes, resulting in high container demand and prices, and attractive lease yields. We are investing heavily to support this strong market and have taken delivery of containers totaling
"From
"In addition to our strong operating performance, we also continued to take actions to further support the strength of our financial position, including the successful completion of a
"As we look ahead, we expect industry fundamentals will remain favorable through at least the remainder of 2021, mostly driven by a strong economy, continued demand for container trade and stable container production. We plan to continue our disciplined approach to fleet growth, deploying our ample liquidity in new container investments for the most attractive long-term opportunities. We remain committed to our strategic plan and focused on enhancing financial performance and delivering long-term value to our shareholders." concluded Ghesquiere.
First-Quarter Results
Lease rental income increased
Gain on sale of owned fleet containers, net increased
Direct container expense – owned fleet decreased
Container lessee default recovery was positive by
Interest expense increased
Conference Call and Webcast
A conference call to discuss the financial results for the first quarter 2021 will be held at
About
Important Cautionary Information Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Investor Relations
Phone: +1 (415) 658-8333
ir@textainer.com
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||||||
Consolidated Statements of Operations |
||||||||||||
(Unaudited) |
||||||||||||
(All currency expressed in |
||||||||||||
Three Months Ended |
||||||||||||
2021 |
2020 |
|||||||||||
Revenues: |
||||||||||||
Lease rental income - owned fleet |
$ |
154,423 |
$ |
130,072 |
||||||||
Lease rental income - managed fleet |
14,821 |
15,406 |
||||||||||
Lease rental income |
169,244 |
145,478 |
||||||||||
Management fees - non-leasing |
1,036 |
1,484 |
||||||||||
Trading container sales proceeds |
7,611 |
9,585 |
||||||||||
Cost of trading containers sold |
(5,445) |
(8,936) |
||||||||||
Trading container margin |
2,166 |
649 |
||||||||||
Gain on sale of owned fleet containers, net |
12,358 |
5,794 |
||||||||||
Operating expenses: |
||||||||||||
Direct container expense - owned fleet |
6,797 |
13,264 |
||||||||||
Distribution expense to managed fleet container investors |
13,495 |
14,163 |
||||||||||
Depreciation expense |
65,806 |
66,834 |
||||||||||
Amortization expense |
800 |
564 |
||||||||||
General and administrative expense |
10,900 |
10,138 |
||||||||||
Bad debt (recovery) expense, net |
(1,127) |
2,045 |
||||||||||
Container lessee default recovery, net |
(3,968) |
(12) |
||||||||||
Total operating expenses |
92,703 |
106,996 |
||||||||||
Income from operations |
92,101 |
46,409 |
||||||||||
Other (expense) income: |
||||||||||||
Interest expense |
(29,106) |
(36,112) |
||||||||||
Write-off of unamortized debt issuance costs |
(267) |
(122) |
||||||||||
Interest income |
37 |
400 |
||||||||||
Realized loss on derivative instruments, net |
(2,956) |
(1,526) |
||||||||||
Unrealized gain (loss) on derivative instruments, net |
3,192 |
(14,937) |
||||||||||
Other, net |
115 |
(53) |
||||||||||
Net other expense |
(28,985) |
(52,350) |
||||||||||
Income (loss) before income tax and noncontrolling interest |
63,116 |
(5,941) |
||||||||||
Income tax (expense) benefit |
(1,066) |
833 |
||||||||||
Net income (loss) |
62,050 |
(5,108) |
||||||||||
Less: Net loss attributable to the noncontrolling interest |
- |
729 |
||||||||||
Net income (loss) attributable to |
$ |
62,050 |
$ |
(4,379) |
||||||||
Net income (loss) attributable to Limited common shareholders per share: |
||||||||||||
Basic |
$ |
1.24 |
$ |
(0.08) |
||||||||
Diluted |
$ |
1.22 |
$ |
(0.08) |
||||||||
Weighted average shares outstanding (in thousands): |
||||||||||||
Basic |
50,150 |
56,455 |
||||||||||
Diluted |
50,865 |
56,455 |
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||
Consolidated Balance Sheets |
||||||||
(Unaudited) |
||||||||
(All currency expressed in |
||||||||
|
|
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
142,345 |
$ |
131,018 |
||||
Accounts receivable, net of allowance of |
110,994 |
108,578 |
||||||
Net investment in finance leases, net of allowance of |
87,451 |
78,459 |
||||||
Container leaseback financing receivable, net of allowance of |
28,495 |
27,076 |
||||||
Trading containers |
5,390 |
9,375 |
||||||
Containers held for sale |
10,890 |
15,629 |
||||||
Prepaid expenses and other current assets |
12,431 |
13,713 |
||||||
Due from affiliates, net |
1,998 |
1,509 |
||||||
Total current assets |
399,994 |
385,357 |
||||||
Restricted cash |
70,276 |
74,147 |
||||||
Containers, net of accumulated depreciation of |
4,416,008 |
4,125,052 |
||||||
Net investment in finance leases, net of allowance of |
983,169 |
801,501 |
||||||
Container leaseback financing receivable, net of allowance of |
335,259 |
336,792 |
||||||
Fixed assets, net of accumulated depreciation of |
628 |
746 |
||||||
Intangible assets, net of accumulated amortization of |
1,919 |
2,719 |
||||||
Derivative instruments |
2,188 |
47 |
||||||
Deferred taxes |
1,154 |
1,153 |
||||||
Other assets |
13,117 |
13,862 |
||||||
Total assets |
$ |
6,223,712 |
$ |
5,741,376 |
||||
Liabilities and Equity |
||||||||
Current liabilities: |
||||||||
Accounts payable and accrued expenses |
$ |
17,266 |
$ |
24,385 |
||||
Container contracts payable |
489,922 |
231,647 |
||||||
Other liabilities |
3,596 |
2,288 |
||||||
Due to container investors, net |
24,844 |
18,697 |
||||||
Debt, net of unamortized costs of |
295,518 |
408,365 |
||||||
Total current liabilities |
831,146 |
685,382 |
||||||
Debt, net of unamortized costs of |
3,998,908 |
3,706,979 |
||||||
Derivative instruments |
20,648 |
29,235 |
||||||
Income tax payable |
10,146 |
10,047 |
||||||
Deferred taxes |
7,429 |
6,491 |
||||||
Other liabilities |
28,731 |
16,524 |
||||||
Total liabilities |
4,897,008 |
4,454,658 |
||||||
Equity: |
||||||||
|
||||||||
Common shares, |
590 |
587 |
||||||
|
(97,017) |
(86,239) |
||||||
Additional paid-in capital |
426,804 |
416,609 |
||||||
Accumulated other comprehensive loss |
(4,118) |
(9,744) |
||||||
Retained earnings |
1,000,445 |
938,395 |
||||||
|
1,326,704 |
1,259,608 |
||||||
Noncontrolling interest |
- |
27,110 |
||||||
Total equity |
1,326,704 |
1,286,718 |
||||||
Total liabilities and equity |
$ |
6,223,712 |
$ |
5,741,376 |
||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||
Consolidated Statements of Cash Flows |
||||||||
(Unaudited) |
||||||||
(All currency expressed in |
||||||||
Three Months Ended |
||||||||
2021 |
2020 |
|||||||
Cash flows from operating activities: |
||||||||
Net income (loss) |
$ |
62,050 |
$ |
(5,108) |
||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation expense |
65,806 |
66,834 |
||||||
Bad debt (recovery) expense, net |
(1,127) |
2,045 |
||||||
Container recovery from lessee default, net |
(5,712) |
(1) |
||||||
Unrealized (gain) loss on derivative instruments, net |
(3,192) |
14,937 |
||||||
Amortization and write-off of unamortized debt issuance costs and |
2,429 |
2,183 |
||||||
Amortization of intangible assets |
800 |
564 |
||||||
Gain on sale of owned fleet containers, net |
(12,358) |
(5,794) |
||||||
Share-based compensation expense |
1,334 |
1,071 |
||||||
Changes in operating assets and liabilities |
24,483 |
(3,009) |
||||||
Total adjustments |
72,463 |
78,830 |
||||||
Net cash provided by operating activities |
134,513 |
73,722 |
||||||
Cash flows from investing activities: |
||||||||
Purchase of containers and fixed assets |
(311,995) |
(11,249) |
||||||
Payment on container leaseback financing receivable |
(6,425) |
— |
||||||
Proceeds from sale of containers and fixed assets |
29,654 |
30,939 |
||||||
Receipt of principal payments on container leaseback financing receivable |
8,721 |
5,099 |
||||||
Net cash (used in) provided by investing activities |
(280,045) |
24,789 |
||||||
Cash flows from financing activities: |
||||||||
Proceeds from debt |
1,153,599 |
— |
||||||
Principal payments on debt |
(969,991) |
(134,697) |
||||||
Purchase of treasury shares |
(10,778) |
(15,477) |
||||||
Purchase of noncontrolling interest |
(21,500) |
— |
||||||
Proceeds from container leaseback financing liability, net |
6,801 |
— |
||||||
Principal repayments on container leaseback financing liability, net |
(94) |
(124) |
||||||
Payment of debt issuance costs |
(6,845) |
(57) |
||||||
Issuance of common shares upon exercise of share options |
1,842 |
— |
||||||
Net cash provided by (used in) financing activities |
153,034 |
(150,355) |
||||||
Effect of exchange rate changes |
(46) |
(63) |
||||||
Net increase (decrease) in cash, cash equivalents and restricted cash |
7,456 |
(51,907) |
||||||
Cash, cash equivalents and restricted cash, beginning of the year |
205,165 |
277,905 |
||||||
Cash, cash equivalents and restricted cash, end of the period |
$ |
212,621 |
$ |
225,998 |
Use of Non-GAAP Financial Information
To supplement
Management believes that adjusted net income and adjusted net income per diluted common share are useful in evaluating
Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in the tables below for the three months ended
Non-GAAP measures are not financial measures calculated in accordance with GAAP and are presented solely as supplemental disclosures. Non-GAAP measures have limitations as analytical tools, and should not be relied upon in isolation, or as a substitute to net income, income from operations, cash flows from operating activities, or any other performance measures derived in accordance with GAAP. Some of these limitations are:
- They do not reflect cash expenditures, or future requirements, for capital expenditures or contractual commitments;
- They do not reflect changes in, or cash requirements for, working capital needs;
- Adjusted EBITDA does not reflect interest expense or cash requirements necessary to service interest or principal payments on debt;
- Although depreciation expense and container impairment are a non-cash charge, the assets being depreciated may be replaced in the future, and neither adjusted EBITDA, adjusted net income or adjusted net income per diluted common share reflects any cash requirements for such replacements;
- They are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows; and
- Other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures.
Three Months Ended, |
||||||||||||
|
|
|
||||||||||
(Dollars in thousands) |
||||||||||||
(Unaudited) |
||||||||||||
Reconciliation of adjusted net income: |
||||||||||||
Net income (loss) attributable to Limited common shareholders |
$ |
62,050 |
$ |
44,260 |
$ |
(4,379) |
||||||
Adjustments: |
||||||||||||
Write-off of unamortized debt issuance costs |
267 |
— |
122 |
|||||||||
Unrealized (gain) loss on derivative instruments, net |
(3,192) |
(3,390) |
14,937 |
|||||||||
Impact of reconciling items on income tax |
27 |
37 |
(150) |
|||||||||
Impact of reconciling items attributable to the |
— |
240 |
(828) |
|||||||||
Adjusted net income |
$ |
59,152 |
$ |
41,147 |
$ |
9,702 |
||||||
Adjusted net income per diluted common share |
$ |
1.16 |
$ |
0.81 |
$ |
0.17 |
||||||
Three Months Ended, |
|||||||||||||
|
|
|
|||||||||||
(Dollars in thousands) |
|||||||||||||
(Unaudited) |
|||||||||||||
Reconciliation of adjusted EBITDA: |
|||||||||||||
Net income (loss) attributable to Limited common shareholders |
$ |
62,050 |
$ |
44,260 |
$ |
(4,379) |
|||||||
Adjustments: |
|||||||||||||
Interest income |
(37) |
(52) |
(400) |
||||||||||
Interest expense |
29,106 |
27,973 |
36,112 |
||||||||||
Write-off of unamortized debt issuance costs |
267 |
— |
122 |
||||||||||
Realized loss on derivative instruments, net |
2,956 |
3,395 |
1,526 |
||||||||||
Unrealized (gain) loss on derivative instruments, net |
(3,192) |
(3,390) |
14,937 |
||||||||||
Income tax expense (benefit) |
1,066 |
(463) |
(833) |
||||||||||
Net income (loss) attributable to the noncontrolling interest |
— |
778 |
(729) |
||||||||||
Depreciation expense |
65,806 |
65,609 |
66,834 |
||||||||||
Container recovery from lessee default, net |
(5,712) |
(122) |
(1) |
||||||||||
Amortization expense |
800 |
806 |
564 |
||||||||||
Impact of reconciling items attributable to the |
— |
(1,960) |
(3,314) |
||||||||||
Adjusted EBITDA |
$ |
153,110 |
$ |
136,834 |
$ |
110,439 |
|||||||
Three Months Ended, |
||||||||||||||
|
|
|
||||||||||||
(Dollars in thousands) |
||||||||||||||
(Unaudited) |
||||||||||||||
Reconciliation of headline earnings: |
||||||||||||||
Net income (loss) attributable to Limited common shareholders |
$ |
62,050 |
$ |
44,260 |
$ |
(4,379) |
||||||||
Adjustments: |
||||||||||||||
Container (recovery) impairment |
(6,551) |
590 |
4,586 |
|||||||||||
Impact of reconciling items on income tax |
61 |
(4) |
(46) |
|||||||||||
Impact of reconciling items attributable to the |
— |
(5) |
(115) |
|||||||||||
Headline earnings |
$ |
55,560 |
$ |
44,841 |
$ |
46 |
||||||||
Headline earnings per basic common share |
$ |
1.11 |
$ |
0.89 |
$ |
- |
||||||||
Headline earnings per diluted common share |
$ |
1.09 |
$ |
0.88 |
$ |
- |
||||||||
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