Financial and Business Highlights
-
Lease rental income of
$124.6 million for the quarter, a decrease of 4 percent from the prior year, and$510.5 million for the full year, an increase of 1 percent from the prior year; -
Net income attributable to
Textainer Group Holdings Limited common shareholders of$21.4 million for the quarter, or$0.38 per diluted common share and$106.9 million for the full year, or$1.87 per diluted common share; -
Adjusted net income(1) of
$12.7 million for the quarter, or$0.22 per diluted common share, and$108.7 million for the full year, or$1.90 per diluted common share; -
During the quarter we recorded
$15.4 million of non-cash container impairments to write down our inventory of containers that are pending disposal. Excluding these impairments, adjusted net income would have been$27.0 million , or$0.47 per diluted share. For the year, these impairments resulted in$30.4 million of lower adjusted net income; -
Adjusted EBITDA(1) of
$104.1 million for the quarter and$430.0 million for the full year; -
Net cash provided by operating activities of
$369.9 million for the full year, an increase of 1.9 percent from the prior year; - Utilization remained at high levels, averaging 95.7 percent for the quarter and is currently at 94.2 percent;
- Increased the percentage of the total fleet that is owned by 2 percent over last year;
-
Continued expansion with more than
$600 million of capex for lease-out in 2015 and$65.5 million invested year-to-date in 2016; and -
A quarterly dividend of
$0.24 per share was declared.
“2015 proved to be a very challenging year. Container prices declined
around 25% during 2015 due primarily to falling steel prices and limited
demand for new containers. The decline in new container prices and
continued low interest rates led to declines in lease rates and lower
resale prices. Additionally, we experienced decreased demand from our
customers as trade growth was lower than expected,” stated Philip K.
Brewer, President and Chief Executive Officer of
“Our results were negatively affected by an increase in impairments of sales containers due to a combination of lower sales prices and an increase in the quantity of containers put to sale. When a container is returned by a shipping line, we decide whether to sell or keep it based on the container’s condition, location, and age. If we decide to sell the container, we immediately write down its value to the expected sales price even though we may not sell the container at that time and may move it to another location where it sells for a different price. We believe our policy provides investors with the most accurate view of our performance.”
“Lease rental income decreased 3.7 percent for the quarter and increased
1.2 percent for the year, from the prior year comparable periods. The
quarterly decrease was due to a decline in rental rates, lower
utilization and a slight decrease in our owned fleet size. The
year-over-year increase resulted largely from an increase in our owned
fleet size,” continued Mr. Brewer. “The level of new dry container
inventory at factories is approximately 770,000 TEU, which is down from
last quarter and a reasonable quantity for this time of year. Container
manufacturers are currently closed for
“We invested more than
Key Financial Information (in thousands except for per share and TEU amounts):
Q4 QTD | Full-year | ||||||||||||||||||||
2015 | 2014 | % Change | 2015 | 2014 | % Change | ||||||||||||||||
Total revenues | $129,299 | $143,606 | -10.0 | % | $542,200 | $563,091 | -3.7 | % | |||||||||||||
Income from operations | $37,798 | $68,118 | -44.5 | % | $210,298 | $271,556 | -22.6 | % | |||||||||||||
Net income attributable to Textainer Group Holdings Limited
common shareholders |
$21,430 | $42,403 | -49.5 | % | $106,887 | $189,362 | -43.6 | % | |||||||||||||
Net income attributable to Textainer Group Holdings Limited
common shareholders per diluted common share |
$0.38 | $0.74 | -48.6 | % | $1.87 | $3.32 | -43.7 | % | |||||||||||||
Adjusted net income(1) | $12,698 | $44,248 | -71.3 | % | $108,650 | $193,798 | -43.9 | % | |||||||||||||
Adjusted net income per diluted common share(1) | $0.22 | $0.77 | -71.4 | % | $1.90 | $3.40 | -44.1 | % | |||||||||||||
Adjusted EBITDA(1) | $104,075 | $112,678 | -7.6 | % | $430,042 | $441,760 | -2.7 | % | |||||||||||||
Net cash provided by operating activities | $369,880 | $362,806 | 1.9 | % | |||||||||||||||||
Average fleet utilization | 95.7 | % | 97.4 | % | -1.7 | % | 96.8 | % | 96.1 | % | 0.7 | % | |||||||||
Total fleet size at end of period (TEU) | 3,147,690 | 3,233,364 | -2.6 | % | |||||||||||||||||
Owned percentage of total fleet at end of period | 80.1 | % | 78.9 | % | 1.5 | % | |||||||||||||||
“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
Fourth-Quarter and Full-Year Results
We experienced a decrease in used container prices which, along with an
increase in the quantity of containers being designated for sale,
increased container impairments by
We continue to monitor the sales prices of other container types, especially 20 foot and 40 foot standard containers. While we do not believe adjustments to their residual values are necessary at this time, we will make adjustments should our expectations regarding future sales prices warrant a change.
In
Our 2014 results also included a
Excluding the container impairment, net of estimated insurance proceeds,
the bad debt provision for our customer that became insolvent, net of
tax impact and the discrete income tax benefit following the completion
of an
Dividend
On
Outlook
“The outlook for 2016 remains challenging for many of the same reasons that affected our 2015 results. Improved performance depends largely on an increase in demand, container prices and/or interest rates, none of which seems likely in the near term. Maturing leases that are extended will continue to be repriced at lower rental rates and container impairments are likely to remain high until resale prices improve. We expect these factors combined will lead to reduced financial results in 2016,” continued Mr. Brewer.
“It is important to keep in mind that our industry is and has always been cyclical. We have been in business for 36 years and have successfully managed through many cycles. We have the least leverage and the lowest operating costs of any of our public competitors. 85% of our fleet is subject to long-term or finance leases with an average remaining term of 40 months. As we have been a consistent buyer of containers over the years, only 8.5% of our term leases mature in 2016. We are well positioned for the challenges we face. Additionally, containers purchased at today’s prices are expected to generate attractive returns over their lives,” concluded Mr. Brewer.
Investors’ Webcast
About
Important Cautionary Information Regarding Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of U.S. securities laws. Forward-looking statements include
statements that are not statements of historical facts and include,
without limitation, statements regarding: (i) Textainer’s belief that
improved performance depends largely on an increase in demand, container
prices and/or interest rates; (ii) Textainer’s belief that maturing
leases that are extended will continue to be repriced at lower rental
rates; (iii) Textainer’s belief that container impairments are likely to
remain high until resale prices improve; (iv) Textainer’s expectation
that the combined factors discussed above will lead to reduced financial
results in 2016; (v) Textainer’s expectation that, having been a
consistent buyer of containers over the years, only 8.5% of its term
leases will mature in 2016; (vi) Textainer’s belief that it is well
positioned for the challenges it faces; and (vii) Textainer’s
expectation that containers purchased at today’s prices will generate
attractive returns over their lives. Readers are cautioned that these
forward-looking statements involve risks and uncertainties, are only
predictions and may differ materially from actual future events or
results. These risks and uncertainties include, without limitation, the
following items that could materially and negatively impact our
business, results of operations, cash flows, financial condition and
future prospects: any deceleration or reversal of the current domestic
and global economic recoveries; lease rates may decrease and lessees may
default, which could decrease revenue and increase storage,
repositioning, collection and recovery expenses; the demand for leased
containers depends on many political and economic factors and is tied to
international trade and if demand were to decrease due to increased
barriers to trade or political or economic factors, or for other
reasons, it could reduce demand for intermodal container leasing; as we
increase the number of containers in our owned fleet, we increase our
capital at risk and may need to incur more debt, which could result in
financial instability;
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income | ||||||||||||||||||||||||||||||||
Three Months and Years Ended December 31, 2015 and 2014 | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
(All currency expressed in United States dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
Three Months Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Lease rental income | $ | 124,616 | $ | 129,445 | $ | 510,466 | $ | 504,225 | ||||||||||||||||||||||||
Management fees | 3,632 | 4,152 | 15,610 | 17,408 | ||||||||||||||||||||||||||||
Trading container sales proceeds | 1,338 | 7,348 | 12,670 | 27,989 | ||||||||||||||||||||||||||||
(Losses) Gains on sale of containers, net | (287 | ) | 2,661 | 3,454 | 13,469 | |||||||||||||||||||||||||||
Total revenues | 129,299 | 143,606 | 542,200 | 563,091 | ||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Direct container expense | 14,856 | 10,206 | 47,342 | 47,446 | ||||||||||||||||||||||||||||
Cost of trading containers sold | 1,268 | 7,000 | 12,475 | 27,465 | ||||||||||||||||||||||||||||
Depreciation expense | 51,575 | 42,658 | 191,373 | 163,488 | ||||||||||||||||||||||||||||
Container impairment | 15,213 | 3,782 | 35,345 | 13,108 | ||||||||||||||||||||||||||||
Amortization expense | 1,239 | 1,167 | 4,741 | 4,010 | ||||||||||||||||||||||||||||
General and administrative expense | 6,016 | 6,509 | 27,645 | 25,778 | ||||||||||||||||||||||||||||
Short-term incentive compensation (benefit) expense |
(732 | ) | 1,311 | 913 | 4,075 | |||||||||||||||||||||||||||
Long-term incentive
compensation expense |
2,199 | 1,760 | 7,040 | 6,639 | ||||||||||||||||||||||||||||
Bad debt (recovery) expense, net | (133 | ) | 1,095 | 5,028 | (474 | ) | ||||||||||||||||||||||||||
Total operating expenses | 91,501 | 75,488 | 331,902 | 291,535 | ||||||||||||||||||||||||||||
Income from operations | 37,798 | 68,118 | 210,298 | 271,556 | ||||||||||||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||||||||||
Interest expense | (18,882 | ) | (18,573 | ) | (76,521 | ) | (85,931 | ) | ||||||||||||||||||||||||
Interest income | 35 | 29 | 125 | 119 | ||||||||||||||||||||||||||||
Realized losses on interest rate
swaps, collars and caps, net |
(3,241 | ) | (2,872 | ) | (12,823 | ) | (10,293 | ) | ||||||||||||||||||||||||
Unrealized gains (losses) on interest
rate swaps, collars and caps, net |
10,106 | (2,447 | ) | (1,947 | ) | 1,512 | ||||||||||||||||||||||||||
Other, net | 1 | 24 | 26 | 23 | ||||||||||||||||||||||||||||
Net other expense | (11,981 | ) | (23,839 | ) | (91,140 | ) | (94,570 | ) | ||||||||||||||||||||||||
Income before income tax
and noncontrolling interests |
25,817 | 44,279 | 119,158 | 176,986 | ||||||||||||||||||||||||||||
Income tax (expense) benefit | (2,435 | ) | (627 | ) | (6,695 | ) | 18,068 | |||||||||||||||||||||||||
Net income | 23,382 | 43,652 | 112,463 | 195,054 | ||||||||||||||||||||||||||||
Less: Net income attributable to the
noncontrolling interests |
(1,952 | ) | (1,249 | ) | (5,576 | ) | (5,692 | ) | ||||||||||||||||||||||||
Net income attributable to
Textainer Group Holdings Limited common shareholders |
$ | 21,430 | $ | 42,403 | $ | 106,887 | $ | 189,362 | ||||||||||||||||||||||||
Net income attributable to Textainer
Group Holdings Limited common shareholders per share: |
||||||||||||||||||||||||||||||||
Basic | $ | 0.38 | $ | 0.75 | $ | 1.88 | $ | 3.34 | ||||||||||||||||||||||||
Diluted | $ | 0.38 | $ | 0.74 | $ | 1.87 | $ | 3.32 | ||||||||||||||||||||||||
Weighted average shares outstanding
(in thousands): |
||||||||||||||||||||||||||||||||
Basic | 56,832 | 56,814 | 56,953 | 56,719 | ||||||||||||||||||||||||||||
Diluted | 56,929 | 57,146 | 57,093 | 57,079 | ||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||
Foreign currency translation
adjustments |
(35 | ) | (158 | ) | (240 | ) | (112 | ) | ||||||||||||||||||||||||
Comprehensive income | 23,347 | 43,494 | 112,223 | 194,942 | ||||||||||||||||||||||||||||
Comprehensive income
attributable to the noncontrolling interests |
(1,952 | ) | (1,249 | ) | (5,576 | ) | (5,692 | ) | ||||||||||||||||||||||||
Comprehensive income attributable to
Textainer Group Holdings Limited common shareholders |
$ | 21,395 | $ | 42,245 | $ | 106,647 | $ | 189,250 |
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | ||||||||||
Condensed Consolidated Balance Sheets | ||||||||||
December 31, 2015 and 2014 | ||||||||||
(Unaudited) | ||||||||||
(All currency expressed in United States dollars in thousands) | ||||||||||
2015 | 2014 | |||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 115,594 | $ | 107,067 | ||||||
Accounts receivable, net of allowance for doubtful accounts of
$14,053 and
$12,139 in 2015 and 2014, respectively |
88,370 | 91,866 | ||||||||
Net investment in direct financing and sales-type leases | 87,706 | 89,003 | ||||||||
Trading containers | 4,831 | 6,673 | ||||||||
Containers held for sale | 43,245 | 25,213 | ||||||||
Prepaid expenses and other current assets | 15,532 | 17,593 | ||||||||
Insurance receivable | 11,435 | - | ||||||||
Deferred taxes | 1,203 | 2,100 | ||||||||
Due from affiliates, net | 514 | - | ||||||||
Total current assets | 368,430 | 339,515 | ||||||||
Restricted cash | 33,917 | 60,310 | ||||||||
Containers, net of accumulated depreciation of $813,514 and $685,667
at 2015
and 2014, respectively |
3,698,011 | 3,629,882 | ||||||||
Net investment in direct financing and sales-type leases | 243,428 | 280,002 | ||||||||
Fixed assets, net of accumulated depreciation of $9,836 and $9,139
at 2015 and
2014, respectively |
1,663 | 1,385 | ||||||||
Intangible assets, net of accumulated amortization of $35,709 and
$30,968 at 2015
and 2014, respectively |
20,249 | 24,991 | ||||||||
Interest rate swaps, collars and caps | 814 | 1,568 | ||||||||
Other assets | 19,742 | 21,324 | ||||||||
Total assets | $ | 4,386,254 | $ | 4,358,977 | ||||||
Liabilities and Equity | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 10,477 | $ | 5,652 | ||||||
Accrued expenses | 6,816 | 11,935 | ||||||||
Container contracts payable | 41,356 | 63,323 | ||||||||
Other liabilities | 291 | 317 | ||||||||
Due to owners, net | 11,806 | 11,003 | ||||||||
Term loan | 31,600 | 31,600 | ||||||||
Bonds payable | 59,990 | 59,959 | ||||||||
Total current liabilities | 162,336 | 183,789 | ||||||||
Revolving credit facilities | 1,019,520 | 944,790 | ||||||||
Secured debt facilities | 1,069,500 | 1,017,100 | ||||||||
Term loan | 404,500 | 444,100 | ||||||||
Bonds payable | 438,438 | 498,428 | ||||||||
Interest rate swaps, collars and caps | 3,412 | 2,219 | ||||||||
Income tax payable | 8,678 | 7,696 | ||||||||
Deferred taxes | 10,420 | 5,675 | ||||||||
Other liabilities | 2,523 | 2,815 | ||||||||
Total liabilities | 3,119,327 | 3,106,612 | ||||||||
Equity: | ||||||||||
Textainer Group Holdings Limited shareholders' equity: | ||||||||||
Common shares, $0.01 par value. Authorized 140,000,000 shares;
57,163,095 shares issued and 56,533,095 shares outstanding at 2015; 56,863,094 shares issued and outstanding at 2014 |
572 | 565 | ||||||||
Additional paid-in capital | 385,020 | 378,316 | ||||||||
Treasury shares, at cost, 630,000 shares at 2015 | (9,149 | ) | - | |||||||
Accumulated other comprehensive income | (283 | ) | (43 | ) | ||||||
Retained earnings | 826,515 | 813,707 | ||||||||
Total Textainer Group Holdings Limited shareholders’ equity | 1,202,675 | 1,192,545 | ||||||||
Noncontrolling interest | 64,252 | 59,820 | ||||||||
Total equity | 1,266,927 | 1,252,365 | ||||||||
Total liabilities and equity | $ | 4,386,254 | $ | 4,358,977 | ||||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES | ||||||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||||||
Years Ended December 31, 2015 and 2014 | ||||||||||||||
(Unaudited) |
||||||||||||||
(All currency expressed in United States dollars in thousands) | ||||||||||||||
2015 | 2014 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | 112,463 | $ | 195,054 | ||||||||||
Adjustments to reconcile net income to net cash provided by operating
activities: |
||||||||||||||
Depreciation expense | 191,373 | 163,488 | ||||||||||||
Container impairment | 35,345 | 13,108 | ||||||||||||
Bad debt expense (recovery) , net | 5,028 | (474 | ) | |||||||||||
Unrealized losses (gains) on interest rate swaps, collars and caps, net | 1,947 | (1,512 | ) | |||||||||||
Amortization of debt issuance costs and accretion of bond discount | 7,887 | 17,144 | ||||||||||||
Amortization of intangible assets | 4,741 | 4,010 | ||||||||||||
Gains on sale of containers, net | (3,454 | ) | (13,469 | ) | ||||||||||
Share-based compensation expense | 7,743 | 7,499 | ||||||||||||
Changes in operating assets and liabilities | 6,807 | (22,042 | ) | |||||||||||
Total adjustments | 257,417 | 167,752 | ||||||||||||
Net cash provided by operating activities | 369,880 | 362,806 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchase of containers and fixed assets | (533,306 | ) | (818,451 | ) | ||||||||||
Proceeds from sale of containers and fixed assets | 129,452 | 141,181 | ||||||||||||
Receipt of payments on direct financing and sales-type leases, net of
income earned |
100,305 | 78,173 | ||||||||||||
Net cash used in investing activities | (303,549 | ) | (599,097 | ) | ||||||||||
Cash flows from financing activities: | ||||||||||||||
Proceeds from revolving credit facilities | 406,177 | 393,251 | ||||||||||||
Principal payments on revolving credit facilities | (331,447 | ) | (308,937 | ) | ||||||||||
Proceeds from secured debt facilities | 160,000 | 470,500 | ||||||||||||
Principal payments on secured debt facilities | (107,600 | ) | (262,000 | ) | ||||||||||
Proceeds from term loan | - | 500,000 | ||||||||||||
Principal payments on term loan | (39,600 | ) | (24,300 | ) | ||||||||||
Proceeds from bonds payable | - | 301,298 | ||||||||||||
Principal payments on bonds payable | (60,230 | ) | (741,405 | ) | ||||||||||
Decrease in restricted cash |
26,393 | 2,850 | ||||||||||||
Purchase of treasury shares | (9,149 | ) | - | |||||||||||
Debt issuance costs | (5,853 | ) | (12,441 | ) | ||||||||||
Issuance of common shares upon exercise of share options | 301 | 2,497 | ||||||||||||
Net tax benefit from share-based compensation awards | (1,333 | ) | 2,124 | |||||||||||
Capital contributions from noncontrolling interests | 1,850 | 6,458 | ||||||||||||
Dividends paid to Textainer Group Holdings Limited shareholders | (94,079 | ) | (106,648 | ) | ||||||||||
Dividends paid to noncontrolling interests | (2,994 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (57,564 | ) | 223,247 | |||||||||||
Effect of exchange rate changes | (240 | ) | (112 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | 8,527 | (13,156 | ) | |||||||||||
Cash and cash equivalents, beginning of the year | 107,067 | 120,223 | ||||||||||||
Cash and cash equivalents, end of the year | $ | 115,594 | $ | 107,067 | ||||||||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Reconciliation
of GAAP financial measures to non-GAAP financial measures
Three
Months and Years Ended
(Unaudited)
(All
currency expressed in
(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 months and years ended
(a) net income attributable to
(b) net cash provided by operating activities to Adjusted EBITDA;
(c) net income attributable to Textainer Group Holdings Limited common
shareholders to adjusted net income (defined as net income attributable
to
(d) net income attributable to
Non-GAAP Measures are not financial measures calculated in accordance
with U.S. generally accepted accounting principles ("GAAP") and should
not be considered as an alternative to net income, income from
operations or any other performance measures derived in accordance with
GAAP or as an alternative to cash flows from operating activities as a
measure of our liquidity. Non-GAAP Measures are presented solely as
supplemental disclosures. Management believes that adjusted EBITDA may
be a useful performance measure that is widely used within our industry
and adjusted net income may be a useful performance measure because
Management also believes that adjusted net income and adjusted net income per diluted common share are useful in evaluating our operating performance because unrealized (gains) losses on interest rate swaps, collars and caps, net is a noncash, non-operating item. We believe Non-GAAP Measures provide useful information on our earnings from ongoing operations. We believe that adjusted EBITDA provides useful information on our ability to service our long-term debt and other fixed obligations and on our ability to fund our expected growth with internally generated funds. Non-GAAP Measures have limitations as analytical tools, and you should not consider either of them in isolation, or as a substitute for analysis of our operating results or cash flows as reported under GAAP. Some of these limitations are:
- They do not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
- They do not reflect changes in, or cash requirements for, our working capital needs;
- Adjusted EBITDA does not reflect interest expense or cash requirements necessary to service interest or principal payments on our debt;
- Although depreciation expense and container impairment is a noncash 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 noncash 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 | Years Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||
Reconciliation of adjusted net income: | |||||||||||||||||
Net income attributable to Textainer Group Holdings Limited common
shareholders |
$ | 21,430 | $ | 42,403 | $ | 106,887 | $ | 189,362 | |||||||||
Adjustments: | |||||||||||||||||
Write-off of unamortized debt issuance costs | - | - | 458 | 6,814 | |||||||||||||
Unrealized (gains) losses on interest rate swaps, collars and caps, net |
(10,106 | ) | 2,447 | 1,947 | (1,512 | ) | |||||||||||
Impact of reconciling items on income tax expense | 464 | (79 | ) | (129 | ) | (147 | ) | ||||||||||
Impact of reconciling item on net income attributable to the
noncontrolling
interests |
910 | (523 | ) | (513 | ) | (719 | ) | ||||||||||
Adjusted net income | $ | 12,698 | $ | 44,248 | $ | 108,650 | $ | 193,798 | |||||||||
Reconciliation of adjusted net income per diluted common share: | |||||||||||||||||
Net income attributable to Textainer Group Holdings Limited common
shareholders
per diluted common share |
$ | 0.38 | $ | 0.74 | $ | 1.87 | $ | 3.32 | |||||||||
Adjustments: | |||||||||||||||||
Write-off of unamortized debt issuance costs | - | - | 0.01 | 0.12 | |||||||||||||
Unrealized (gains) losses on interest rate swaps, collars and caps, net | (0.18 | ) | 0.04 | 0.03 | (0.03 | ) | |||||||||||
Impact of reconciling items on income tax expense | 0.01 | - | - | - | |||||||||||||
Impact of reconciling item on net income attributable to the
noncontrolling
interests |
0.01 | (0.01 | ) | (0.01 | ) | (0.01 | ) | ||||||||||
Adjusted net income per diluted common share | $ | 0.22 | $ | 0.77 | $ | 1.90 | $ | 3.40 | |||||||||
Three Months Ended | Years Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||
Reconciliation of adjusted EBITDA: | |||||||||||||||||
Net income attributable to Textainer Group Holdings
Limited common shareholders |
$ | 21,430 | $ | 42,403 | $ | 106,887 | $ | 189,362 | |||||||||
Adjustments: | |||||||||||||||||
Interest income | (35 | ) | (29 | ) | (125 | ) | (119 | ) | |||||||||
Interest expense | 18,882 | 18,573 | 76,521 | 85,931 | |||||||||||||
Realized losses on interest rate swaps and caps, net | 3,241 | 2,872 | 12,823 | 10,293 | |||||||||||||
Unrealized (gains) losses on interest rate swaps, collars and caps, net |
(10,106 | ) | 2,447 | 1,947 | (1,512 | ) | |||||||||||
Income tax expense (benefit) | 2,435 | 627 | 6,695 | (18,068 | ) | ||||||||||||
Net income attributable to the noncontrolling interests | 1,952 | 1,249 | 5,576 | 5,692 | |||||||||||||
Depreciation expense | 51,575 | 42,658 | 191,373 | 163,488 | |||||||||||||
Container impairment | 15,213 | 3,782 | 35,345 | 13,108 | |||||||||||||
Amortization expense | 1,239 | 1,167 | 4,741 | 4,010 | |||||||||||||
Impact of reconciling items on net income attributable to
the noncontrolling interests |
(1,751 | ) | (3,071 | ) | (11,741 | ) | (10,425 | ) | |||||||||
Adjusted EBITDA | $ | 104,075 | $ | 112,678 | $ | 430,042 | $ | 441,760 | |||||||||
Net cash provided by operating activities | $ | 369,880 | $ | 362,806 | |||||||||||||
Adjustments: | |||||||||||||||||
Bad debt (expense) recovery , net | (5,028 | ) | 474 | ||||||||||||||
Amortization of debt issuance costs and accretion of bond discount | (7,887 | ) | (17,144 | ) | |||||||||||||
Gains on sale of containers, net | 3,454 | 13,469 | |||||||||||||||
Share-based compensation expense | (7,743 | ) | (7,499 | ) | |||||||||||||
Interest income | (125 | ) | (119 | ) | |||||||||||||
Interest expense | 76,521 | 85,931 | |||||||||||||||
Realized losses on interest rate swaps and caps, net | 12,823 | 10,293 | |||||||||||||||
Income tax expense (benefit) |
6,695 | (18,068 | ) | ||||||||||||||
Changes in operating assets and liabilities | (6,807 | ) | 22,042 | ||||||||||||||
Impact of reconciling items on net income attributable to the noncontrolling interests |
(11,741 | ) | (10,425 | ) | |||||||||||||
Adjusted EBITDA | $ | 430,042 | $ | 441,760 | |||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160211005370/en/
Source:
Textainer Group Holdings Limited
Hilliard C. Terry, III, +1
415-658-8214
Executive Vice President and Chief Financial Officer
ir@textainer.com