Financial and Business Summaries
-
Lease rental income increased
$1.2 million (or one percent) from the prior quarter to$108.8 million for the quarter; -
Gains on sale of containers, net increased
$1.8 million (or 45 percent) from the prior quarter to$5.9 million (or$0.10 per diluted common share) for the quarter; -
Container impairments declined
$3.1 million (or 81 percent) from the prior quarter to$0.7 million (or$0.01 per diluted common share) for the quarter; -
Adjusted EBITDA(1) of
$91.2 million for the quarter, an increase of$9.1 million (or 11 percent) from the prior quarter; -
Net loss attributable to
Textainer Group Holdings Limited common shareholders of$9.4 million for the quarter, or$0.16 per diluted common share, an increase of$2.4 million (or 34 percent) from the prior quarter mainly due from the write-off of unamortized deferred debt issuance costs and bond discounts; -
Adjusted net loss(1) of
$1.2 million for the quarter, or$0.02 per diluted common share, an improvement of$7.9 million (or 87 percent) from the prior quarter; - Utilization averaged 96.3 percent for the quarter and is currently at 96.6 percent, an improvement of 160 basis point over the prior quarter average; and
-
Approximately
$275 million of capex year-to-date in 2017.
“We continue to see strong improvement in container leasing market
conditions with a quarter-to-quarter increase in lease revenue, decrease
in direct container expense, reduction in container impairments and
increase in gains on container sales. New container prices were around
“Notwithstanding these very positive developments, the impact of writing off several one-time items related to our refinancing activity and non-cash GAAP tax expense, resulted in our reporting GAAP net loss in the second quarter. However, we project that we will return to profitability during the second half of this year.”
“Due to the need to recover
“A week ago, we were very pleased to assume the management of 182,000
TEU fleet of containers from
Key Financial Information (in thousands except for per share and TEU amounts):
QTD | YTD | |||||||||||||||||||
Q2 2017 | Q1 2017 | Q2 2016 (*) | Q2 2017 | Q2 2016 (*) | ||||||||||||||||
Lease rental income | $ | 108,779 | $ | 107,617 | $ | 120,465 | $ | 216,396 | $ | 242,813 | ||||||||||
Total revenues | $ | 119,247 | $ | 116,687 | $ | 127,041 | $ | 235,934 | $ | 255,661 | ||||||||||
Income from operations | $ | 33,512 | $ | 20,039 | $ | 26,398 | $ | 53,551 | $ | 55,772 | ||||||||||
Net loss attributable to Textainer Group Holdings Limited common shareholders |
$ | (9,353 | ) | $ | (6,974 | ) | $ | (1,879 | ) | $ | (16,327 | ) | $ | (5,616 | ) | |||||
Net loss attributable to Textainer Group Holdings Limited common shareholders per diluted common share |
$ | (0.16 | ) | $ | (0.12 | ) | $ | (0.03 | ) | $ | (0.29 | ) | $ | (0.10 | ) | |||||
Adjusted net (loss) income (1) | $ | (1,195 | ) | $ | (9,067 | ) | $ | 2,537 | $ | (10,262 | ) | $ | 8,559 | |||||||
Adjusted net (loss) income per diluted common share (1) | $ | (0.02 | ) | $ | (0.16 | ) | $ | 0.04 | $ | (0.18 | ) | $ | 0.15 | |||||||
Adjusted EBITDA (1) | $ | 91,210 | $ | 82,112 | $ | 95,214 | $ | 173,322 | $ | 191,449 | ||||||||||
Average fleet utilization | 96.3 | % | 95.0 | % | 94.7 | % | 95.7 | % | 94.6 | % | ||||||||||
Total fleet size at end of period (TEU) | 2,992,040 | 3,054,198 | 3,195,378 | |||||||||||||||||
Owned percentage of total fleet at end of period | 81.3 | % | 81.3 | % | 81.0 | % |
(*) Certain amounts for the period ended
“Adjusted net (loss) income” and “adjusted EBITDA” are Non-GAAP Measures
that are reconciled to GAAP measures in footnote 1. “Adjusted net (loss)
income” is defined as net (loss) income attributable to
Second-Quarter Results
Lease rental income decreased
Gains on sale of containers, net was
Textainer’s second quarter results were adversely impacted by an
increase in depreciation expense of
“Our average effective interest rate increased 108 basis points when
compared to the year-ago quarter. Approximately 60 basis points of the
increase was due to increased spreads following our financing amendments
as several below market rate facilities were repriced to align with
current market rates for container lessors. Additionally, we have
incremental fees because of our financing activity and changes to LIBOR,
offset by a hedging benefit. Several below-market rate facilities being
repriced as a part of the amendment process to align with current market
rates. Our effective rate remained relatively flat versus first quarter
of this year and we are working to improve our funding costs going
forward,” commented
“During the quarter, we completed two asset-backed notes issuances
totaling
In addition to the above-mentioned factors, Textainer’s second quarter
results were also negatively impacted by an increase of
Outlook
“New container prices have not only remained stable but seem likely to
increase in the coming months due to production constraints resulting
from the challenges of using waterborne paint during the winter months
and increases in component costs. For these reasons, we are optimistic.
Used container prices have increased 85% since the low point in
“We are excited about our outlook; the lease-out market is strong and a number of sustainable trends appear to be in place for this strength to persist. Production capacity is limited, new container and depot inventories are very low, utilization is high for all container lessors, and lessors are purchasing more than half of all new production. The financial performance of shipping lines is improving but they remain somewhat capital constrained and are viewing leasing favorably. Our high utilization and attractive used container prices should ensure gains on sale continue in the coming quarters and we expect direct costs to further reduce as storage and handling expenses continue to benefit from high utilization.”
“Should current market conditions continue going forward, we project our revenue to increase significantly due to the repricing of maturing leases which are at rates well below the current market. We believe that these positive changes and trends, especially the future impact of lease repricing, may not be recognized by the market,” concluded Mr. Brewer.
Investors’ Conference Call and 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 expectation
that it will return to profitability during the second half of this
year; (ii) Textainer’s expectation that its new container investments
combined with on-going-lease-outs of depot and ex-
Textainer’s views, estimates, plans and outlook as described within this
document may change subsequent to the release of this press release.
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES Condensed Consolidated Statements of Comprehensive Loss Three and Six Months Ended June 30, 2017 and 2016 (Unaudited) (All currency expressed in United States dollars in thousands, except per share amounts) |
||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2017 | 2016 (1) | 2017 | 2016 (1) | |||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Lease rental income | $ | 108,779 | $ | 120,465 | $ | 216,396 | $ | 242,813 | ||||||||||||||||||||||||
Management fees | 3,534 | 3,294 | 6,756 | 6,638 | ||||||||||||||||||||||||||||
Trading container sales proceeds | 1,052 | 3,062 | 2,852 | 4,964 | ||||||||||||||||||||||||||||
Gains on sale of containers, net | 5,882 | 220 | 9,930 | 1,246 | ||||||||||||||||||||||||||||
Total revenues | 119,247 | 127,041 | 235,934 | 255,661 | ||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Direct container expense | 14,889 | 14,549 | 34,548 | 29,178 | ||||||||||||||||||||||||||||
Cost of trading containers sold | 716 | 3,614 | 2,005 | 6,258 | ||||||||||||||||||||||||||||
Depreciation expense | 59,644 | 51,783 | 120,252 | 104,394 | ||||||||||||||||||||||||||||
Container impairment | 714 | 19,484 | 4,525 | 36,776 | ||||||||||||||||||||||||||||
Amortization expense | 948 | 1,372 | 1,896 | 2,746 | ||||||||||||||||||||||||||||
General and administrative expense | 7,309 | 6,599 | 14,654 | 13,765 | ||||||||||||||||||||||||||||
Short-term incentive compensation expense (benefit) | 2 | (93 | ) | 1,362 | 680 | |||||||||||||||||||||||||||
Long-term incentive compensation expense | 1,405 | 1,498 | 2,781 | 3,106 | ||||||||||||||||||||||||||||
Bad debt expense, net | 108 | 1,837 | 360 | 2,986 | ||||||||||||||||||||||||||||
Total operating expenses | 85,735 | 100,643 | 182,383 | 199,889 | ||||||||||||||||||||||||||||
Income from operations | 33,512 | 26,398 | 53,551 | 55,772 | ||||||||||||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||||||||||
Interest expense | (29,404 | ) | (20,022 | ) | (58,317 | ) | (39,987 | ) | ||||||||||||||||||||||||
Write-off of unamortized deferred debt issuance costs and bond discounts |
(7,228 | ) | - | (7,228 | ) | - | ||||||||||||||||||||||||||
Interest income | 89 | 103 | 217 | 179 | ||||||||||||||||||||||||||||
Realized losses on interest rate swaps, collars and caps, net |
(479 | ) | (2,378 | ) | (1,641 | ) | (4,731 | ) | ||||||||||||||||||||||||
Unrealized (losses) gains on interest rate swaps, collars and caps, net |
(1,232 | ) | (5,022 | ) | 1,062 | (16,199 | ) | |||||||||||||||||||||||||
Other, net | 17 | 3 | 3 | (5 | ) | |||||||||||||||||||||||||||
Net other expense | (38,237 | ) | (27,316 | ) | (65,904 | ) | (60,743 | ) | ||||||||||||||||||||||||
Loss before income tax and noncontrolling interests |
(4,725 | ) | (918 | ) | (12,353 | ) | (4,971 | ) | ||||||||||||||||||||||||
Income tax expense | (4,767 | ) | (797 | ) | (5,214 | ) | (817 | ) | ||||||||||||||||||||||||
Net loss | (9,492 | ) | (1,715 | ) | (17,567 | ) | (5,788 | ) | ||||||||||||||||||||||||
Less: Net loss (income) attributable to the noncontrolling interests |
139 | (164 | ) | 1,240 | 172 | |||||||||||||||||||||||||||
Net loss attributable to Textainer Group Holdings Limited common shareholders |
$ | (9,353 | ) | $ | (1,879 | ) | $ | (16,327 | ) | $ | (5,616 | ) | ||||||||||||||||||||
Net loss attributable to Textainer Group Holdings Limited common shareholders per share: |
||||||||||||||||||||||||||||||||
Basic | $ | (0.16 | ) | $ | (0.03 | ) | $ | (0.29 | ) | $ | (0.10 | ) | ||||||||||||||||||||
Diluted | $ | (0.16 | ) | $ | (0.03 | ) | $ | (0.29 | ) | $ | (0.10 | ) | ||||||||||||||||||||
Weighted average shares outstanding (in thousands): | ||||||||||||||||||||||||||||||||
Basic | 56,803 | 56,580 | 56,797 | 56,575 | ||||||||||||||||||||||||||||
Diluted | 56,803 | 56,580 | 56,797 | 56,575 | ||||||||||||||||||||||||||||
Other comprehensive loss: | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | 64 | 111 | 96 | (2 | ) | |||||||||||||||||||||||||||
Comprehensive loss | (9,428 | ) | (1,604 | ) | (17,471 | ) | (5,790 | ) | ||||||||||||||||||||||||
Comprehensive loss attributable to the noncontrolling interests |
139 | (164 | ) | 1,240 | 172 | |||||||||||||||||||||||||||
Comprehensive loss attributable to Textainer Group Holdings Limited common shareholders |
$ | (9,289 | ) | $ | (1,768 | ) | $ | (16,231 | ) | $ | (5,618 | ) |
(1) Certain amounts for the periods ended
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES Condensed Consolidated Balance Sheets June 30, 2017 and December 31, 2016 (Unaudited) (All currency expressed in United States dollars in thousands) |
||||||||
2017 | 2016 (1) | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 138,727 | $ | 84,045 | ||||
Accounts receivable, net of allowance for doubtful accounts of $28,648 and $31,844 in 2017 and 2016, respectively |
72,892 | 76,547 | ||||||
Net investment in direct financing and sales-type leases | 56,568 | 64,951 | ||||||
Trading containers | 3,165 | 4,363 | ||||||
Containers held for sale | 32,856 | 25,513 | ||||||
Prepaid expenses and other current assets | 12,915 | 13,584 | ||||||
Insurance receivable | 25,162 | 44,785 | ||||||
Due from affiliates, net | 1,091 | 869 | ||||||
Total current assets | 343,376 | 314,657 | ||||||
Restricted cash | 86,414 | 58,078 | ||||||
Containers, net of accumulated depreciation of $1,084,766 and $990,784 at 2017 and 2016, respectively |
3,553,155 | 3,717,542 | ||||||
Net investment in direct financing and sales-type leases | 152,073 | 172,283 | ||||||
Fixed assets, net of accumulated depreciation of $10,513 and $10,136 at 2017 and 2016, respectively |
1,741 | 1,993 | ||||||
Intangible assets, net of accumulated amortization of $42,658 and $40,762 at 2017 and 2016, respectively |
13,301 | 15,197 | ||||||
Interest rate swaps, collars and caps | 5,113 | 4,816 | ||||||
Deferred taxes | 1,389 | 1,385 | ||||||
Other assets | 6,749 | 8,075 | ||||||
Total assets | $ | 4,163,311 | $ | 4,294,026 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 8,552 | $ | 12,060 | ||||
Accrued expenses | 15,381 | 9,721 | ||||||
Container contracts payable | 5,432 | 11,990 | ||||||
Other liabilities | 250 | 265 | ||||||
Due to owners, net | 10,564 | 18,132 | ||||||
Debt, net of unamortized deferred financing costs of $5,562 and $6,137 at 2017 and 2016, respectively |
266,625 | 205,081 | ||||||
Total current liabilities | 306,804 | 257,249 | ||||||
Debt, net of unamortized deferred financing costs of $17,437 and $10,267 at 2017 and 2016, respectively | 2,663,559 | 2,833,216 | ||||||
Interest rate swaps, collars and caps | 439 | 1,204 | ||||||
Income tax payable | 8,787 | 9,076 | ||||||
Deferred taxes | 11,183 | 6,237 | ||||||
Other liabilities | 2,141 | 2,259 | ||||||
Total liabilities | 2,992,913 | 3,109,241 | ||||||
Equity: | ||||||||
Textainer Group Holdings Limited shareholders’ equity: | ||||||||
Common shares, $0.01 par value. Authorized 140,000,000 shares; 57,443,680 shares issued and 56,813,680 shares outstanding at 2017; 57,417,119 shares issued and 56,787,119 shares outstanding at 2016 |
575 | 575 | ||||||
Additional paid-in capital | 393,864 | 390,780 | ||||||
Treasury shares, at cost, 630,000 shares | (9,149 | ) | (9,149 | ) | ||||
Accumulated other comprehensive income | (420 | ) | (516 | ) | ||||
Retained earnings | 727,909 | 744,236 | ||||||
Total Textainer Group Holdings Limited shareholders’ equity | 1,112,779 | 1,125,926 | ||||||
Noncontrolling interest | 57,619 | 58,859 | ||||||
Total equity | 1,170,398 | 1,184,785 | ||||||
Total liabilities and equity | $ | 4,163,311 | $ | 4,294,026 | ||||
(1) Certain amounts as of December 31, 2016 have been restated for immaterial corrections related to the calculation of gains on sale of containers, net, to properly account for lease concessions and to reclassify debt balances to conform with the 2017 presentation. | ||||||||
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows Six Months Ended June 30, 2017 and 2016 (Unaudited) (All currency expressed in United States dollars in thousands) |
||||||||
2017 | 2016 (1) | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (17,567 | ) | $ | (5,788 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation expense | 120,252 | 104,394 | ||||||
Container impairment | 4,525 | 36,776 | ||||||
Bad debt expense, net | 360 | 2,986 | ||||||
Unrealized (gains) losses on interest rate swaps, collars and caps, net | (1,062 | ) | 16,199 | |||||
Amortization and write-off of unamortized deferred debt issuance costs and accretion of bond discount |
14,970 | 3,765 | ||||||
Amortization of intangible assets | 1,896 | 2,746 | ||||||
Gains on sale of containers, net | (9,930 | ) | (1,246 | ) | ||||
Share-based compensation expense | 3,084 | 3,423 | ||||||
Changes in operating assets and liabilities | 1,008 | (18,767 | ) | |||||
Total adjustments | 135,103 | 150,276 | ||||||
Net cash provided by operating activities | 117,536 | 144,488 | ||||||
Cash flows from investing activities: | ||||||||
Purchase of containers and fixed assets | (24,994 | ) | (228,073 | ) | ||||
Proceeds from sale of containers and fixed assets | 66,049 | 61,154 | ||||||
Receipt of payments on direct financing and sales-type leases, net of income earned | 32,999 | 46,318 | ||||||
Insurance proceeds received for unrecoverable containers | 13,801 | 5,500 | ||||||
Net cash provided by (used in) investing activities | 87,855 | (115,101 | ) | |||||
Cash flows from financing activities: | ||||||||
Proceeds from debt | 1,356,000 | 193,000 | ||||||
Principal payments on debt | (1,458,201 | ) | (203,837 | ) | ||||
Debt issuance costs | (20,268 | ) | (1,550 | ) | ||||
Net tax benefit from share-based compensation awards | — | (110 | ) | |||||
Dividends paid to Textainer Group Holdings Limited shareholders | — | (27,058 | ) | |||||
Net cash used in financing activities | (122,469 | ) | (39,555 | ) | ||||
Effect of exchange rate changes | 96 | (2 | ) | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 83,018 | (10,170 | ) | |||||
Cash, cash equivalents and restricted cash, beginning of the year | 142,123 | 149,511 | ||||||
Cash, cash equivalents and restricted cash, end of the period | $ | 225,141 | $ | 139,341 | ||||
(1) Certain amounts for the period ended
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES |
||||
Reconciliation of GAAP financial measures to non-GAAP financial measures |
||||
Three and Six Months Ended June 30, 2017 and 2016 | ||||
(Unaudited) | ||||
(All currency expressed in United States dollars in thousands, except per share amounts) | ||||
(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 and six months ended June 30, 2017 and 2016, including: | |||
(a) | net loss attributable to Textainer Group Holdings Limited common shareholders to adjusted EBITDA (Adjusted EBITDA defined as net loss attributable to Textainer Group Holdings Limited common shareholders before interest income and expense, realized and unrealized losses (gains) on interest rate swaps, collars and caps, net, income tax expense, net (loss) income attributable to the noncontrolling interests (“NCI”), depreciation expense, container impairment, amortization expense and the related impact of reconciling items on net loss attributable to the NCI); | |||
(b) | net cash provided by operating activities to Adjusted EBITDA; | |||
(c) | net loss attributable to Textainer Group Holdings Limited common shareholders to adjusted net (loss) income (defined as net loss attributable to Textainer Group Holdings Limited common shareholders before the write-off of unamortized deferred debt issuance costs and bond discounts, unrealized losses (gains) on interest rate swaps, collars and caps, net, the related impact of reconciling items on income tax expense and net (loss) income attributable to the NCI); and | |||
(d) | net loss attributable to Textainer Group Holdings Limited common shareholders per diluted common share to adjusted net (loss) income per diluted common share (defined as net loss (income) attributable to Textainer Group Holdings Limited common shareholders per diluted common share before the write-off of unamortized deferred debt issuance costs and bond discounts, unrealized losses (gains) on interest rate swaps, collars and caps, net, the related impact of reconciling items on income tax expense and net (loss) income attributable to the NCI). | |||
|
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 loss, 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 (loss) income may be a useful performance measure because
Management also believes that adjusted net income and adjusted net (loss) income per diluted common share are useful in evaluating our operating performance because unrealized losses (gains) 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 (loss) income or adjusted net (loss) 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 | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2017 | 2016 (1) | 2017 | 2016 (1) | |||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Reconciliation of adjusted net loss: | ||||||||||||||||
Net loss attributable to Textainer Group Holdings Limited common shareholders |
$ | (9,353 | ) | $ | (1,879 | ) | $ | (16,327 | ) | $ | (5,616 | ) | ||||
Adjustments: | ||||||||||||||||
Write-off of unamortized deferred debt issuance costs and bond discounts | 7,228 | — | 7,228 | — | ||||||||||||
Unrealized losses (gains) on interest rate swaps, collars and caps, net | 1,232 | 5,022 | (1,062 | ) | 16,199 | |||||||||||
Impact of reconciling items on income tax expense | (142 | ) | (61 | ) | (104 | ) | (266 | ) | ||||||||
Impact of reconciling items on net (loss) income attributable to the noncontrolling interests |
(160 | ) | (545 | ) | 3 | (1,758 | ) | |||||||||
Adjusted net (loss) income | $ | (1,195 | ) | $ | 2,537 | $ | (10,262 | ) | $ | 8,559 | ||||||
Reconciliation of adjusted net (loss) income per diluted common share: | ||||||||||||||||
Net loss attributable to Textainer Group Holdings Limited common shareholders per diluted common share |
$ | (0.16 | ) | $ | (0.03 | ) | $ | (0.29 | ) | $ | (0.10 | ) | ||||
Adjustments: | ||||||||||||||||
Write-off of unamortized deferred debt issuance costs and bond discounts | 0.13 | — | 0.13 | — | ||||||||||||
Unrealized losses (gains) on interest rate swaps, collars and caps, net | 0.01 | 0.08 | (0.02 | ) | 0.28 | |||||||||||
Impact of reconciling items on income tax expense | — | — | — | — | ||||||||||||
Impact of reconciling items on net (loss) income attributable to the noncontrolling interests |
— | (0.01 | ) | — | (0.03 | ) | ||||||||||
Adjusted net (loss) income per diluted common share | $ | (0.02 | ) | $ | 0.04 | $ | (0.18 | ) | $ | 0.15 | ||||||
(1) Certain amounts for the periods ended June 30, 2016 have been restated for immaterial corrections of identified errors pertaining to the classification of certain leases and the calculation of gains on sale of containers, net. | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2017 | 2016 (1) | 2017 | 2016 (1) | |||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Reconciliation of adjusted EBITDA: | ||||||||||||||||
Net loss attributable to Textainer Group Holdings Limited common shareholders |
$ | (9,353 | ) | $ | (1,879 | ) | $ | (16,327 | ) | $ | (5,616 | ) | ||||
Adjustments: | ||||||||||||||||
Interest income | (89 | ) | (103 | ) | (217 | ) | (179 | ) | ||||||||
Interest expense | 29,404 | 20,022 | 58,317 | 39,987 | ||||||||||||
Write-off of unamortized deferred debt issuance costs and bond discounts | 7,228 | — | 7,228 | — | ||||||||||||
Realized losses on interest rate swaps, collars and caps, net | 479 | 2,378 | 1,641 | 4,731 | ||||||||||||
Unrealized losses (gains) on interest rate swaps, collars and caps, net | 1,232 | 5,022 | (1,062 | ) | 16,199 | |||||||||||
Income tax expense | 4,767 | 797 | 5,214 | 817 | ||||||||||||
Net (loss) income attributable to the noncontrolling interests | (139 | ) | 164 | (1,240 | ) | (172 | ) | |||||||||
Depreciation expense | 59,644 | 51,783 | 120,252 | 104,394 | ||||||||||||
Container impairment | 714 | 19,484 | 4,525 | 36,776 | ||||||||||||
Amortization expense | 948 | 1,372 | 1,896 | 2,746 | ||||||||||||
Impact of reconciling items on net loss attributable to the noncontrolling interests |
(3,625 | ) | (3,826 | ) | (6,905 | ) | (8,234 | ) | ||||||||
Adjusted EBITDA | $ | 91,210 | $ | 95,214 | $ | 173,322 | $ | 191,449 | ||||||||
Net cash provided by operating activities | $ | 117,536 | $ | 144,488 | ||||||||||||
Adjustments: | ||||||||||||||||
Bad debt expense, net | (360 | ) | (2,986 | ) | ||||||||||||
Amortization and write-off of unamortized deferred debt issuance costs and accretion of bond discount |
(14,970 | ) | (3,765 | ) | ||||||||||||
Gains on sale of containers, net | 9,930 | 1,246 | ||||||||||||||
Share-based compensation expense | (3,084 | ) | (3,423 | ) | ||||||||||||
Interest income | (217 | ) | (179 | ) | ||||||||||||
Interest expense | 58,317 | 39,987 | ||||||||||||||
Write-off of unamortized deferred debt issuance costs and bond discounts | 7,228 | — | ||||||||||||||
Realized losses on interest rate swaps, collars and caps, net | 1,641 | 4,731 | ||||||||||||||
Income tax expense | 5,214 | 817 | ||||||||||||||
Changes in operating assets and liabilities | (1,008 | ) | 18,767 | |||||||||||||
Impact of reconciling items on net loss attributable to the noncontrolling interests |
(6,905 | ) | (8,234 | ) | ||||||||||||
Adjusted EBITDA | $ | 173,322 | $ | 191,449 | ||||||||||||
(1) Certain amounts for the periods ended June 30, 2016 have been restated for immaterial corrections of identified errors pertaining to the classification of certain leases, the calculation of gains on sale of containers, net and for the adoption of Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. |
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Source:
Textainer Group Holdings Limited
Hilliard C. Terry, III, +1
415-658-8214
Executive Vice President and Chief Financial Officer
ir@textainer.com