Financial and Business Summaries
Textainer’s third quarter 2016 financial results were significantly
impacted by Hanjin Shipping Co.’s (“Hanjin”) bankruptcy filing. On
-
Lease rental income of
$110.9 million for the quarter, a decrease of$18.3 million (or 14.2 percent) from the prior year quarter;$4.8 million of this reduction was due toHanjin . Lease rental income adjusted forHanjin decreased 10.5 percent from the prior year quarter; -
Financial impact for the quarter as of result of the bankruptcy of
Hanjin was$44.0 million (or$0.78 per diluted common share); -
Decreased estimated future residual values and increased the estimated
useful lives of certain equipment types resulting in
$15.0 million (or$0.26 per diluted common share) of additional depreciation expense for the quarter; -
Recorded
$16.5 million (or$0.29 per diluted common share) of container impairments to write down our inventory of containers that are pending disposal for the quarter to their fair market value; -
Net loss attributable to
Textainer Group Holdings Limited common shareholders of$45.9 million for the quarter, or$0.81 per diluted common share; -
Adjusted net loss (1) of
$52.3 million for the quarter, or$0.92 per diluted common share; and -
Utilization averaging 95.4 percent for the quarter and is currently at
94.6 percent, which includes the equipment on-lease to
Hanjin ;
“Our third quarter results were negatively affected by several
significant factors the biggest of which was the bankruptcy filing by
“To date, we have recovered, booked or approved to recover for turn-in
41% of our containers on lease to
“The Hanjin bankruptcy and ongoing impairments are overshadowing recent
improvements in the lease-out market. New container prices have
increased by about
“Notwithstanding these improvements in market conditions, the Board made the very difficult decision to eliminate our dividend. This was not an easy decision but was made in the best interests of the company and its shareholders. Our Board recognizes the value shareholders place on dividends and will review this decision as market conditions change.”
Key Financial Information (in thousands except for per share and TEU amounts):
Q3 QTD | Q3 YTD | |||||||||||||||||||||||
2016 | 2015 (1) | % Change | 2016 | 2015 (1) | % Change | |||||||||||||||||||
Total revenues | $ | 121,211 | $ | 136,532 | -11.2 | % | $ | 378,114 | $ | 414,587 | -8.8 | % | ||||||||||||
(Loss) income from operations |
$ | (38,509 | ) | $ | 44,241 | -187.0 | % | $ | 18,505 | $ | 173,778 | -89.4 | % | |||||||||||
Net (loss) income attributable to Textainer Group Holdings Limited common shareholders |
$ | (45,917 | ) | $ | 10,554 | -535.1 | % | $ | (50,316 | ) | $ | 86,735 | -158.0 | % | ||||||||||
Net (loss) income attributable to Textainer Group Holdings Limited common shareholders per diluted common share |
$ | (0.81 | ) | $ | 0.18 | -550.0 | % | $ | (0.89 | ) | $ | 1.52 | -158.6 | % | ||||||||||
Adjusted net (loss) income (2) | $ | (52,299 | ) | $ | 18,342 | -385.1 | % | $ | (42,523 | ) | $ | 97,230 | -143.7 | % | ||||||||||
Adjusted net (loss) income per diluted common share (2) | $ | (0.92 | ) | $ | 0.32 | -387.5 | % | $ | (0.75 | ) | $ | 1.70 | -144.1 | % | ||||||||||
Adjusted EBITDA (2) | $ | 68,072 | $ | 105,068 | -35.2 | % | $ | 260,764 | $ | 327,653 | -20.4 | % | ||||||||||||
Net cash provided by operating activities | $ | 223,265 | $ | 279,246 | -20.0 | % | ||||||||||||||||||
Average fleet utilization | 95.4 | % | 96.4 | % | -1.0 | % | 94.9 | % | 97.2 | % | -2.4 | % | ||||||||||||
Total fleet size at end of period (TEU) | 3,195,443 | 3,219,550 | -0.7 | % | ||||||||||||||||||||
Owned percentage of total fleet at end of period | 81.7 | % | 80.0 | % | 2.1 | % | ||||||||||||||||||
(1) Amounts for Q3 QTD 2015 and Q3 YTD 2015 have been restated for immaterial corrections of identified errors pertaining to the classification of certain leases. |
||||||||||||||||||||||||
“Adjusted net (loss) income” and “adjusted EBITDA” are Non-GAAP Measures
that are reconciled to GAAP measures in footnote 2. “Adjusted net (loss)
income” is defined as net (loss) income attributable to
Third-Quarter Results
Textainer’s third quarter results compared to the prior year quarter
were negatively impacted primarily by container impairments and bad debt
expense related to Hanjin’s bankruptcy, our decision to reduce the
estimated future residual values on certain equipment types and an
increase in container impairments due to a decrease in used container
prices and an increase in the quantity of containers designated for
disposal. Furthermore, lease rental income decreased due to a decrease
in average rental rates, lower utilization and lost revenue from the
In
The net book value of all containers in our fleet on lease to
We evaluate the estimated future residual values and monitor the sales
prices and useful lives of our containers on an ongoing basis.
The changes to our containers’ estimated useful lives and residual values are as follows:
Estimated Residual Values | Estimated useful life (years) | |||||||||||
Container types |
Prior July 1, 2016 |
Effective July 1, 2016 |
Container types |
Prior July 1, 2016 |
Effective July 1, 2016 |
|||||||
20' standard containers | $ | 1,050 | $ | 950 | 40' standard containers | 13 | 14 | |||||
40' high cube containers | $ | 1,450 | $ | 1,300 | 20' folding flat containers | 14 | 15 | |||||
40' standard containers | $ | 1,300 | $ | 1,150 | 20' open top containers | 14 | 15 | |||||
40' folding flat containers | $ | 2,000 | $ | 1,700 | 40' folding flat containers | 14 | 16 |
Outlook
“We expect new container production to total 1.6-1.7 million TEU this
year, which would be the lowest level of production since 2009. We
estimate 1.5 million TEU will be disposed meaning the world’s container
fleet will show minimal growth in 2016. If investment in new containers
remains at these low levels, the recent increase in rental rates should
continue,” noted Mr. Brewer. “New container prices are currently
approximately
“Notwithstanding this recent strength in new and depot container
lease-outs and increases in new and used container prices, the costs of
recovering
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
due largely to the expected level of unrecovered containers, lost
revenue and recovery and repair costs, that its losses will exceed its
insurance coverage; (ii) Textainer’s expectation that new container
production to total 1.6-1.7 million TEU this year; (iii) Textainer’s
belief that 1.5 million TEU will be disposed meaning the world’s
container fleet will show minimal growth in 2016; (iv) Textainer’s
expectation that if investment in new containers remains at today’s low
level, the recent increase in rental rates should continue; (v)
Textainer’s expectation that increased container prices should be
further supported by the implementation of water-born paint regulations
throughout
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) Income Three and nine months ended September 30, 2016 and 2015 (Unaudited) (All currency expressed in United States dollars in thousands, except per share amounts) |
||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2016 | 2015 (1) | 2016 | 2015 (1) | |||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Lease rental income | $ | 110,905 | $ | 129,209 | $ | 353,718 | $ | 387,536 | ||||||||||||||||||||||||
Management fees | 3,136 | 3,951 | 9,774 | 11,978 | ||||||||||||||||||||||||||||
Trading container sales proceeds | 4,139 | 2,280 | 9,103 | 11,332 | ||||||||||||||||||||||||||||
Gains on sale of containers, net | 3,031 | 1,092 | 5,519 | 3,741 | ||||||||||||||||||||||||||||
Total revenues | 121,211 | 136,532 | 378,114 | 414,587 | ||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Direct container expense | 15,691 | 13,317 | 44,869 | 32,486 | ||||||||||||||||||||||||||||
Cost of trading containers sold | 4,647 | 2,599 | 10,905 | 11,207 | ||||||||||||||||||||||||||||
Depreciation expense |
68,220 | 51,608 | 172,614 | 140,204 | ||||||||||||||||||||||||||||
Container impairment | 43,722 | 12,279 | 80,498 | 20,134 | ||||||||||||||||||||||||||||
Amortization expense | 1,370 | 1,168 | 4,116 | 3,502 | ||||||||||||||||||||||||||||
General and administrative expense | 6,147 | 7,134 | 19,912 | 21,629 | ||||||||||||||||||||||||||||
Short-term incentive compensation expense | 388 | 207 | 1,068 | 1,645 | ||||||||||||||||||||||||||||
Long-term incentive compensation expense | 1,458 | 1,360 | 4,564 | 4,841 | ||||||||||||||||||||||||||||
Bad debt expense, net | 18,077 | 2,619 | 21,063 | 5,161 | ||||||||||||||||||||||||||||
Total operating expenses | 159,720 | 92,291 | 359,609 | 240,809 | ||||||||||||||||||||||||||||
(Loss) income from operations |
(38,509 | ) | 44,241 | 18,505 | 173,778 | |||||||||||||||||||||||||||
Other (expense) income: | ||||||||||||||||||||||||||||||||
Interest expense | (21,256 | ) | (18,979 | ) | (61,243 | ) | (57,639 | ) | ||||||||||||||||||||||||
Interest income | 103 | 27 | 282 | 90 | ||||||||||||||||||||||||||||
Realized losses on interest rate swaps, collars and caps, net | (2,268 | ) | (3,488 | ) | (6,999 | ) | (9,582 | ) | ||||||||||||||||||||||||
Unrealized gains (losses) on interest rate swaps, collars and caps, net |
7,157 | (9,378 | ) | (9,042 | ) | (12,053 | ) | |||||||||||||||||||||||||
Other, net | (4 | ) | 12 | (9 | ) | 25 | ||||||||||||||||||||||||||
Net other expense | (16,268 | ) | (31,806 | ) | (77,011 | ) | (79,159 | ) | ||||||||||||||||||||||||
(Loss) income before income tax and noncontrolling interests |
(54,777 | ) | 12,435 | (58,506 | ) | 94,619 | ||||||||||||||||||||||||||
Income tax benefit (expense) | 3,170 | (1,625 | ) | 2,353 | (4,260 | ) | ||||||||||||||||||||||||||
Net (loss) income | (51,607 | ) | 10,810 | (56,153 | ) | 90,359 | ||||||||||||||||||||||||||
Less: Net loss (income) attributable to the noncontrolling interests |
5,690 | (256 | ) | 5,837 | (3,624 | ) | ||||||||||||||||||||||||||
Net (loss) income attributable to Textainer Group Holdings Limited common shareholders |
$ | (45,917 | ) | $ | 10,554 | $ | (50,316 | ) | $ | 86,735 | ||||||||||||||||||||||
Net (loss) income attributable to Textainer Group Holdings Limited common shareholders per share: |
||||||||||||||||||||||||||||||||
Basic | $ | (0.81 | ) | $ | 0.19 | $ | (0.89 | ) | $ | 1.52 | ||||||||||||||||||||||
Diluted | $ | (0.81 | ) | $ | 0.18 | $ | (0.89 | ) | $ | 1.52 | ||||||||||||||||||||||
Weighted average shares outstanding (in thousands): | ||||||||||||||||||||||||||||||||
Basic | 56,591 | 57,009 | 56,580 | 56,993 | ||||||||||||||||||||||||||||
Diluted | 56,591 | 57,083 | 56,580 | 57,127 | ||||||||||||||||||||||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (80 | ) | (86 | ) | (82 | ) | (205 | ) | ||||||||||||||||||||||||
Comprehensive (loss) income | (51,687 | ) | 10,724 | (56,235 | ) | 90,154 | ||||||||||||||||||||||||||
Comprehensive loss (income) attributable to the noncontrolling interests |
5,690 | (256 | ) | 5,837 | (3,624 | ) | ||||||||||||||||||||||||||
Comprehensive (loss) income attributable to Textainer Group Holdings Limited common shareholders |
$ | (45,997 | ) | $ | 10,468 | $ | (50,398 | ) | $ | 86,530 | ||||||||||||||||||||||
(1) Amounts for the three and nine months ended September 30, 2015 have been restated for immaterial corrections of identified errors pertaining to the classification of certain leases. |
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES Condensed Consolidated Balance Sheets September 30, 2016 and December 31, 2015 (Unaudited) (All currency expressed in United States dollars in thousands) |
||||||||
2016 | 2015 (1) | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 91,589 | $ | 115,594 | ||||
Accounts receivable, net of allowance for doubtful accounts of $37,306 and $14,053 in 2016 and 2015, respectively |
83,032 | 88,370 | ||||||
Net investment in direct financing and sales-type leases | 65,921 | 86,404 | ||||||
Trading containers | 4,002 | 4,831 | ||||||
Containers held for sale | 31,028 | 43,245 | ||||||
Prepaid expenses and other current assets | 16,222 | 8,385 | ||||||
Insurance receivable | 26,911 | 11,435 | ||||||
Due from affiliates, net | 816 | 514 | ||||||
Total current assets | 319,521 | 358,778 | ||||||
Restricted cash | 36,405 | 33,917 | ||||||
Containers, net of accumulated depreciation of $940,859 and $814,790 at 2016 and 2015, respectively |
3,804,461 | 3,696,311 | ||||||
Net investment in direct financing and sales-type leases | 181,560 | 245,388 | ||||||
Fixed assets, net of accumulated depreciation of $10,080 and $9,836 at 2016 and 2015, respectively |
1,888 | 1,663 | ||||||
Intangible assets, net of accumulated amortization of $39,824 and $35,709 at 2016 and 2015, respectively |
16,134 | 20,250 | ||||||
Interest rate swaps, collars and caps | 557 | 814 | ||||||
Deferred taxes | 1,417 | 1,203 | ||||||
Other assets | 7,839 | 6,988 | ||||||
Total assets | $ | 4,369,782 | $ | 4,365,312 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 9,402 | $ | 10,477 | ||||
Accrued expenses | 7,319 | 6,816 | ||||||
Container contracts payable | 114,674 | 41,356 | ||||||
Other liabilities | 271 | 291 | ||||||
Due to owners, net | 13,626 | 11,806 | ||||||
Credit facility | 31,573 | - | ||||||
Term loan | 30,935 | 31,097 | ||||||
Bonds payable | 58,975 | 58,788 | ||||||
Total current liabilities | 266,775 | 160,631 | ||||||
Credit facilities | 1,105,339 | 1,013,252 | ||||||
Secured debt facilities | 1,016,242 | 1,062,539 | ||||||
Term loan | 373,894 | 403,500 | ||||||
Bonds payable | 390,221 | 434,472 | ||||||
Interest rate swaps, collars and caps | 12,197 | 3,412 | ||||||
Income tax payable | 9,461 | 8,678 | ||||||
Deferred taxes | 7,486 | 10,420 | ||||||
Other liabilities | 2,325 | 2,523 | ||||||
Total liabilities | 3,183,940 | 3,099,427 | ||||||
Equity: | ||||||||
Textainer Group Holdings Limited shareholders’ equity: | ||||||||
Common shares, $0.01 par value. Authorized 140,000,000 shares;
57,220,797 shares
issued and 56,590,797 shares outstanding at 2016; 57,163,095 shares issued and 56,533,095 shares outstanding at 2015 |
572 | 572 | ||||||
Additional paid-in capital | 389,966 | 385,020 | ||||||
Treasury shares, at cost, 630,000 shares | (9,149 | ) | (9,149 | ) | ||||
Accumulated other comprehensive income | (365 | ) | (283 | ) | ||||
Retained earnings | 746,403 | 825,473 | ||||||
Total Textainer Group Holdings Limited shareholders’ equity | 1,127,427 | 1,201,633 | ||||||
Noncontrolling interest | 58,415 | 64,252 | ||||||
Total equity | 1,185,842 | 1,265,885 | ||||||
Total liabilities and equity | $ | 4,369,782 | $ | 4,365,312 | ||||
(1) Amounts as of December 31, 2015 have been restated for immaterial corrections of identified errors pertaining to the classification of certain leases. |
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows Nine months ended September 30, 2016 and 2015 (Unaudited) (All currency expressed in United States dollars in thousands) |
||||||||
2016 | 2015 (1) | |||||||
Cash flows from operating activities: | ||||||||
Net (loss) income | $ | (56,153 | ) | $ | 90,359 | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
Depreciation expense | 172,614 | 140,204 | ||||||
Container impairment | 80,498 | 20,134 | ||||||
Bad debt expense, net | 21,063 | 5,161 | ||||||
Unrealized losses on interest rate swaps, collars and caps, net | 9,042 | 12,053 | ||||||
Amortization of debt issuance costs and accretion of bond discount | 5,743 | 6,028 | ||||||
Amortization of intangible assets | 4,116 | 3,502 | ||||||
Gains on sale of containers, net | (5,519 | ) | (3,741 | ) | ||||
Share-based compensation expense | 5,056 | 5,345 | ||||||
Changes in operating assets and liabilities | (13,195 | ) | 201 | |||||
Total adjustments | 279,418 | 188,887 | ||||||
Net cash provided by operating activities | 223,265 | 279,246 | ||||||
Cash flows from investing activities: | ||||||||
Purchase of containers and fixed assets | (382,533 | ) | (447,765 | ) | ||||
Proceeds from sale of containers and fixed assets | 94,149 | 94,486 | ||||||
Receipt of payments on direct financing and sales-type leases, net of income earned | 74,761 | 76,057 | ||||||
Net cash used in investing activities | (213,623 | ) | (277,222 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from credit facilities | 237,500 | 345,177 | ||||||
Principal payments on credit facilities | (113,960 | ) | (322,704 | ) | ||||
Proceeds from secured debt facilities | 40,000 | 160,000 | ||||||
Principal payments on secured debt facilities | (89,200 | ) | (56,000 | ) | ||||
Principal payments on term loan | (29,700 | ) | (29,700 | ) | ||||
Principal payments on bonds payable | (45,173 | ) | (45,173 | ) | ||||
(Increase) decrease in restricted cash | (2,488 | ) | 19,904 | |||||
Debt issuance costs | (1,679 | ) | (5,058 | ) | ||||
Issuance of common shares upon exercise of share options | — | 292 | ||||||
Net tax benefit from share-based compensation awards | (110 | ) | 94 | |||||
Capital contributions from noncontrolling interest | — | 1,850 | ||||||
Dividends paid to Textainer Group Holdings Limited shareholders | (28,755 | ) | (80,360 | ) | ||||
Dividends paid to noncontrolling interest | - | (2,994 | ) | |||||
Net cash used in financing activities | (33,565 | ) | (14,672 | ) | ||||
Effect of exchange rate changes | (82 | ) | (205 | ) | ||||
Net decrease in cash and cash equivalents | (24,005 | ) | (12,853 | ) | ||||
Cash and cash equivalents, beginning of the year | 115,594 | 107,067 | ||||||
Cash and cash equivalents, end of the period | $ | 91,589 | $ | 94,214 | ||||
(1) Amounts for the nine months ended September 30, 2015 have been restated for immaterial corrections of identified errors pertaining to the classification of certain leases. |
TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES |
||
(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 nine months ended September 30, 2016 and 2015, including: |
|
(a) | net (loss) income attributable to Textainer Group Holdings Limited common shareholders to adjusted EBITDA (Adjusted EBITDA defined as net (loss) income 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 income (loss) attributable to the noncontrolling interests (“NCI”), depreciation expense, container impairment, amortization expense and the related impact of reconciling items on net income (loss) attributable to the NCI); | |
(b) | net cash provided by operating activities to Adjusted EBITDA; | |
(c) | net (loss) income attributable to Textainer Group Holdings Limited common shareholders to adjusted net (loss) income (defined as net (loss) income attributable to Textainer Group Holdings Limited common shareholders before the write-off of unamortized debt issuance costs, unrealized losses (gains) on interest rate swaps, collars and caps, net, the related impact of reconciling items on income tax expense and net income (loss) attributable to the NCI); and | |
(d) | net (loss) income 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 debt issuance costs, unrealized losses (gains) on interest rate swaps, collars and caps, net, the related impact of reconciling items on income tax expense and net income (loss) 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, 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 September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2016 | 2015 (1) | 2016 | 2015 (1) | |||||||||||||
(Dollars in thousands) (Unaudited) |
(Dollars in thousands) (Unaudited) |
|||||||||||||||
Reconciliation of adjusted net (loss) income: | ||||||||||||||||
Net (loss) income attributable to Textainer Group Holdings Limited common shareholders |
$ | (45,917 | ) | $ | 10,554 | $ | (50,316 | ) | $ | 86,735 | ||||||
Adjustments: | ||||||||||||||||
Write-off of unamortized debt issuance costs | — | — | — | 458 | ||||||||||||
Unrealized (gains) losses on interest rate swaps, collars and caps, net | (7,157 | ) | 9,378 | 9,042 | 12,053 | |||||||||||
Impact of reconciling items on income tax benefit (expense) | 117 | (485 | ) | (149 | ) | (593 | ) | |||||||||
Impact of reconciling items on net income (loss) attributable to the noncontrolling interests |
658 | (1,105 | ) | (1,100 | ) | (1,423 | ) | |||||||||
Adjusted net (loss) income | $ | (52,299 | ) | $ | 18,342 | $ | (42,523 | ) | $ | 97,230 | ||||||
Reconciliation of adjusted net (loss) income per diluted common share: | ||||||||||||||||
Net (loss) income attributable to Textainer Group Holdings Limited common shareholders per diluted common share |
$ | (0.81 | ) | $ | 0.18 | $ | (0.89 | ) | $ | 1.52 | ||||||
Adjustments: | ||||||||||||||||
Write-off of unamortized debt issuance costs | — | — |
— |
— |
||||||||||||
Unrealized (gains) losses on interest rate swaps, collars and caps, net | (0.12 | ) | 0.17 | 0.16 | 0.21 | |||||||||||
Impact of reconciling items on income tax benefit (expense) | — | (0.01 | ) | — | (0.01 | ) | ||||||||||
Impact of reconciling items on net income (loss) attributable to the noncontrolling interests |
0.01 | (0.02 | ) | (0.02 | ) | (0.02 | ) | |||||||||
Adjusted net (loss) income per diluted common share | $ | (0.92 | ) | $ | 0.32 | $ | (0.75 | ) | $ | 1.70 | ||||||
(1) Amounts for the three and nine months ended September 30, 2015 have been restated for immaterial corrections of identified errors pertaining to the classification of certain leases. |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2016 | 2015 (1) | 2016 | 2015 (1) | |||||||||||||
(Dollars in thousands) (Unaudited) |
(Dollars in thousands) (Unaudited) |
|||||||||||||||
Reconciliation of adjusted EBITDA: | ||||||||||||||||
Net (loss) income attributable to Textainer Group Holdings Limited common shareholders |
$ | (45,917 | ) | $ | 10,554 | $ | (50,316 | ) | $ | 86,735 | ||||||
Adjustments: | ||||||||||||||||
Interest income | (103 | ) | (27 | ) | (282 | ) | (90 | ) | ||||||||
Interest expense | 21,256 | 18,979 | 61,243 | 57,639 | ||||||||||||
Realized losses on interest rate swaps, collars and caps, net | 2,268 | 3,488 | 6,999 | 9,582 | ||||||||||||
Unrealized (gains) losses on interest rate swaps, collars and caps, net | (7,157 | ) | 9,378 | 9,042 | 12,053 | |||||||||||
Income tax (benefit) expense | (3,170 | ) | 1,625 | (2,353 | ) | 4,260 | ||||||||||
Net (loss) income attributable to the noncontrolling interests | (5,690 | ) | 256 | (5,837 | ) | 3,624 | ||||||||||
Depreciation expense | 68,220 | 51,608 | 172,614 | 140,204 | ||||||||||||
Container impairment | 43,722 | 12,279 | 80,498 | 20,134 | ||||||||||||
Amortization expense | 1,370 | 1,168 | 4,116 | 3,502 | ||||||||||||
Impact of reconciling items on net (loss) income attributable to the noncontrolling interests |
(6,727 | ) | (4,240 | ) | (14,960 | ) | (9,990 | ) | ||||||||
Adjusted EBITDA | $ | 68,072 | $ | 105,068 | $ | 260,764 | $ | 327,653 | ||||||||
Net cash provided by operating activities | $ | 223,265 | $ | 279,246 | ||||||||||||
Adjustments: | ||||||||||||||||
Bad debt expense, net | (21,063 | ) | (5,161 | ) | ||||||||||||
Amortization of debt issuance costs and accretion of bond discount |
(5,743 | ) | (6,028 | ) | ||||||||||||
Gains on sale of containers, net | 5,519 | 3,741 | ||||||||||||||
Share-based compensation expense | (5,056 | ) | (5,345 | ) | ||||||||||||
Interest income | (282 | ) | (90 | ) | ||||||||||||
Interest expense | 61,243 | 57,639 | ||||||||||||||
Realized losses on interest rate swaps, collars and caps, net | 6,999 | 9,582 | ||||||||||||||
Income tax (benefit) expense | (2,353 | ) | 4,260 | |||||||||||||
Changes in operating assets and liabilities | 13,195 | (201 | ) | |||||||||||||
Impact of reconciling items on net (loss) income attributable to the noncontrolling interests |
(14,960 | ) | (9,990 | ) | ||||||||||||
Adjusted EBITDA | $ | 260,764 | $ | 327,653 | ||||||||||||
(1) Amounts for the three and nine months ended September 30, 2015 have been restated for immaterial corrections of identified errors pertaining to the classification of certain leases. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20161108005388/en/
Source:
Textainer Group Holdings Limited
Hilliard C. Terry, III, +1
415-658-8214
Executive Vice President and Chief Financial Officer
ir@textainer.com