Textainer Group Holdings Limited (NYSE: TGH; JSE: TXT)
(“Textainer”, “the Company”, “we” and “our”), one of the world’s
largest lessors of intermodal containers, today reported financial
results for the third-quarter ended September 30, 2022.
Key Financial Information (in thousands except for per
share and TEU amounts) and Business Highlights:
|
|
QTD |
|
|
|
Q3 2022 |
|
|
Q2 2022 |
|
|
Q3 2021 |
|
Total lease rental income |
|
$ |
205,152 |
|
|
$ |
203,232 |
|
|
$ |
195,830 |
|
Gain on sale of owned fleet
containers, net |
|
$ |
22,788 |
|
|
$ |
23,213 |
|
|
$ |
20,028 |
|
Income from operations |
|
$ |
123,292 |
|
|
$ |
122,847 |
|
|
$ |
114,037 |
|
Net income attributable to common
shareholders |
|
$ |
76,400 |
|
|
$ |
78,590 |
|
|
$ |
64,729 |
|
Net income attributable to common
shareholders per diluted common share |
|
$ |
1.64 |
|
|
$ |
1.63 |
|
|
$ |
1.28 |
|
Adjusted net income(1) |
|
$ |
76,562 |
|
|
$ |
78,522 |
|
|
$ |
76,502 |
|
Adjusted net income per diluted
common share(1) |
|
$ |
1.64 |
|
|
$ |
1.63 |
|
|
$ |
1.52 |
|
Adjusted EBITDA(1) |
|
$ |
192,647 |
|
|
$ |
191,086 |
|
|
$ |
184,240 |
|
Average fleet utilization(2) |
|
|
99.4 |
% |
|
|
99.6 |
% |
|
|
99.8 |
% |
Total fleet size at end of period
(TEU)(3) |
|
|
4,478,963 |
|
|
|
4,508,490 |
|
|
|
4,264,946 |
|
Owned percentage of total fleet
at end of period |
|
|
93.6 |
% |
|
|
93.3 |
% |
|
|
92.6 |
% |
(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 and units manufactured for us but not yet 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 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 $76.4 million for the
third quarter, or $1.64 per diluted common share, as compared to
$78.6 million, or $1.63 per diluted common share, for the second
quarter of 2022;
- Adjusted net income of $76.6 million
for the third quarter, or $1.64 per diluted common share, as
compared to $78.5 million, or $1.63 per diluted common share, for
the second quarter of 2022;
- Adjusted EBITDA of $192.6 million for
the third quarter, as compared to $191.1 million for the second
quarter of 2022;
- Average and ending utilization rate for
the third quarter of 99.4% and 99.1%, respectively;
- Added $765 million of new containers
through the first nine months of 2022, primarily assigned to
long-term finance leases;
- Repurchased 1,717,997 common shares at
an average price of $30.30 per share during the third quarter. On
October 25, 2022, Textainer's board of directors authorized a
further increase of $100 million to the share repurchase program.
Combined with the increased authorization, the remaining available
authority under the share repurchase program totaled $168 million
as of the end of the third quarter;
- Textainer’s board of directors approved
and declared a quarterly preferred cash dividend on its 7.00%
Series A and its 6.25% Series B cumulative redeemable perpetual
preference shares, payable on December 15, 2022, to holders of
record as of December 2, 2022; and
- Textainer’s board of directors approved
and declared a $0.25 per common share cash dividend, payable on
December 15, 2022 to holders of record as of December 2, 2022.
“We are pleased to deliver yet another quarter of very strong
results, continuing the positive momentum from our record
performance last quarter. For the third quarter, lease rental
income was $205 million, adjusted net income was $77 million, and
adjusted EPS was $1.64, representing an annualized ROE of 18%. As
we had anticipated, demand for new containers was muted during the
third quarter as shipping lines operate with sufficient
inventories, thereby limiting lease out opportunities. Despite the
normalizing market environment, we delivered a solid performance as
we harvested the benefit of our investment strategy over the past
two years and continued to benefit from favorable disposal prices
for older containers. We also delivered a strong EPS thanks to our
elevated share buyback activity as we remain focused on optimizing
capital allocation and creating long-term shareholder value,”
stated Olivier Ghesquiere, President and Chief Executive
Officer.
“As overall shipping demand eased, customers started
redelivering mostly old sales age containers they had kept active
in a buoyant environment. This allowed us to increase our own
disposal volumes and realize an exceptional $23 million of gains on
disposal despite lower overall resale prices.”
“We expect to see a continuation of lower demand for new
containers over the coming quarters following a record 18 months of
capex in 2020 and 2021. Given lessened opportunities to deploy
accretive capex, we remain focused on returning capital to common
shareholders through our ongoing dividend and share repurchase
programs. During the third quarter, we repurchased 1,717,997
shares, and repurchases total 8% of outstanding common shares since
the beginning of the year. We intend to remain both active and
opportunistic as it relates to share repurchase activity.”
“In closing, we are very pleased with our performance in the
third quarter and year to date. Our balance sheet remains strong,
with healthy liquidity, an efficient capital structure with more
than 90% fixed rate and hedged financing, and demonstrated expense
control and efficiency. We believe we are well-positioned to
navigate the current economic environment and we remain focused on
prioritizing capital allocation in this slower growth period while
preparing for future market cycle opportunities,” concluded
Ghesquiere.
Third-Quarter Results
Total lease rental income for the quarter increased $1.9 million
from the second quarter of 2022 due to the full quarter benefit
from capex investment deployed earlier in the year and one more
billing day in the current quarter.
Gain on sale of owned fleet containers, net for the quarter
remained relatively flat compared to the second quarter of 2022.
Higher sales volumes were offset by a reduction in average gain per
container sold.
Direct container expense – owned fleet for the quarter increased
$1.9 million from the second quarter of 2022, primarily due to
higher maintenance, handling and storage expense resulting from
slightly escalated redeliveries of predominantly older, sales age
containers, in turn driving our increased resale activity.
Depreciation and amortization for the quarter remained
relatively flat compared to the second quarter of 2022, as most new
container investment has been assigned to long-term finance leases,
which do not incur depreciation.
General and administrative expense for the quarter decreased
$1.4 million from the second quarter of 2022, which included lower
professional and IT costs.
Interest expense for the quarter increased $3.6 million from the
second quarter of 2022, primarily driven by an increase in our
average effective interest rate.
Other, net for the quarter increased $1.1 million from the
second quarter of 2022, in line with higher interest income
resulting from higher average interest rate yields.
Conference Call and Webcast
A conference call to discuss the financial results for the third
quarter of 2022 will be held at 11:00 am Eastern Time on Tuesday,
November 1, 2022. The dial-in number for the conference call
is 1-877-300-8521 (U.S. & Canada) and 1-412-317-6026
(International). The call and archived replay may also be accessed
via webcast on Textainer’s Investor Relations website at
http://investor.textainer.com.
About Textainer Group Holdings Limited
Textainer has operated since 1979 and is one of the world’s
largest lessors of intermodal containers with more than 4 million
TEU in our owned and managed fleet. We lease containers to
approximately 200 customers, including all of the world’s leading
international shipping lines, and other lessees. Our fleet consists
of standard dry freight, refrigerated intermodal containers, and
dry freight specials. We also lease tank containers through our
relationship with Trifleet Leasing and are a supplier of containers
to the U.S. Military. Textainer is one of the largest and most
reliable suppliers of new and used containers. In addition to
selling older containers from our fleet, we buy older containers
from our shipping line customers for trading and resale. We sold an
average of approximately 130,000 containers per year for the last
five years to more than 1,000 customers making us one of the
largest sellers of used containers. Textainer operates via a
network of 14 offices and approximately 400 independent depots
worldwide. Textainer has a primary listing on the New York Stock
Exchange (NYSE: TGH) and a secondary listing on the Johannesburg
Stock Exchange (JSE: TXT). Visit www.textainer.com for additional
information about Textainer.
Important Cautionary Information Regarding
Forward-Looking StatementsThis 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 may relate to, but are not
limited to, expectations or estimates of future operating results
or financial performance, capital expenditures, introduction of new
products, regulatory compliance, plans for growth and future
operations, as well as assumptions relating to the foregoing. In
some cases, you can identify forward-looking statements by
terminology such as “may,” “will,” “should,” “could,” “expect,”
“plan,” “anticipate,” “believe,” “estimate,” “predict,” “intend,”
“potential,” “continue” or the negative of these terms or other
similar terminology. 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: (i) We expect to see a
continuation of lower demand for new containers over the coming
quarters; (ii) We believe we are well-positioned to navigate the
current economic environment; (iii) We intend to remain both active
and opportunistic as it relates to share repurchase activity; and
other risks and uncertainties, including those set forth in
Textainer’s filings with the Securities and Exchange Commission.
For a discussion of some of these risks and uncertainties, see
Item 3 “Key Information— Risk Factors” in Textainer’s Annual
Report on Form 20-F filed with the Securities and Exchange
Commission on March 17, 2022.
Textainer’s views, estimates, plans and outlook as described
within this document may change subsequent to the release of this
press release. Textainer is under no obligation to modify or update
any or all of the statements it has made herein despite any
subsequent changes Textainer may make in its views, estimates,
plans or outlook for the future.
Textainer Group Holdings LimitedInvestor RelationsPhone: +1
(415) 658-8333ir@textainer.com
TEXTAINER GROUP HOLDINGS LIMITED AND
SUBSIDIARIESConsolidated Statements of
Operations(Unaudited)(All currency expressed in United States
dollars in thousands, except per share amounts) |
|
|
Three Months EndedSeptember 30, |
|
|
Nine Months EndedSeptember 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating leases - owned fleet |
$ |
153,540 |
|
|
$ |
152,655 |
|
|
$ |
457,622 |
|
|
$ |
435,083 |
|
Operating leases - managed fleet |
|
12,322 |
|
|
|
13,175 |
|
|
|
37,641 |
|
|
|
42,982 |
|
Finance leases and container leaseback financing
receivable - owned fleet |
|
39,290 |
|
|
|
30,000 |
|
|
|
111,839 |
|
|
|
74,443 |
|
Total lease rental income |
|
205,152 |
|
|
|
195,830 |
|
|
|
607,102 |
|
|
|
552,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees - non-leasing |
|
710 |
|
|
|
598 |
|
|
|
1,915 |
|
|
|
2,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading container sales proceeds |
|
5,791 |
|
|
|
6,307 |
|
|
|
18,801 |
|
|
|
22,648 |
|
Cost of trading containers sold |
|
(5,334 |
) |
|
|
(3,668 |
) |
|
|
(17,035 |
) |
|
|
(13,612 |
) |
Trading container margin |
|
457 |
|
|
|
2,639 |
|
|
|
1,766 |
|
|
|
9,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of owned fleet
containers, net |
|
22,788 |
|
|
|
20,028 |
|
|
|
61,914 |
|
|
|
51,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct container expense - owned fleet |
|
8,717 |
|
|
|
5,210 |
|
|
|
21,015 |
|
|
|
17,794 |
|
Distribution expense to managed fleet container investors |
|
10,952 |
|
|
|
11,751 |
|
|
|
33,427 |
|
|
|
38,770 |
|
Depreciation and amortization |
|
73,238 |
|
|
|
73,641 |
|
|
|
218,688 |
|
|
|
210,950 |
|
General and administrative expense |
|
11,739 |
|
|
|
12,543 |
|
|
|
36,451 |
|
|
|
34,263 |
|
Bad debt expense (recovery), net |
|
206 |
|
|
|
(15 |
) |
|
|
743 |
|
|
|
(1,225 |
) |
Container lessee default expense (recovery), net |
|
963 |
|
|
|
1,928 |
|
|
|
1,518 |
|
|
|
(1,185 |
) |
Total operating expenses |
|
105,815 |
|
|
|
105,058 |
|
|
|
311,842 |
|
|
|
299,367 |
|
Income from operations |
|
123,292 |
|
|
|
114,037 |
|
|
|
360,855 |
|
|
|
316,145 |
|
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(41,242 |
) |
|
|
(33,128 |
) |
|
|
(114,144 |
) |
|
|
(92,381 |
) |
Debt termination expense |
|
— |
|
|
|
(11,866 |
) |
|
|
— |
|
|
|
(15,078 |
) |
Realized loss on financial
instruments, net |
|
— |
|
|
|
(112 |
) |
|
|
— |
|
|
|
(5,516 |
) |
Unrealized (loss) gain on
financial instruments, net |
|
(204 |
) |
|
|
83 |
|
|
|
(326 |
) |
|
|
4,681 |
|
Other, net |
|
1,368 |
|
|
|
(730 |
) |
|
|
1,748 |
|
|
|
(527 |
) |
Net other expense |
|
(40,078 |
) |
|
|
(45,753 |
) |
|
|
(112,722 |
) |
|
|
(108,821 |
) |
Income before income
taxes |
|
83,214 |
|
|
|
68,284 |
|
|
|
248,133 |
|
|
|
207,324 |
|
Income tax (expense)
benefit |
|
(1,846 |
) |
|
|
59 |
|
|
|
(5,532 |
) |
|
|
(890 |
) |
Net income |
|
81,368 |
|
|
|
68,343 |
|
|
|
242,601 |
|
|
|
206,434 |
|
Less: Dividends on preferred
shares |
|
4,968 |
|
|
|
3,614 |
|
|
|
14,906 |
|
|
|
5,860 |
|
Net income attributable to common shareholders |
$ |
76,400 |
|
|
$ |
64,729 |
|
|
$ |
227,695 |
|
|
$ |
200,574 |
|
Net income attributable to
common shareholders per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.66 |
|
|
$ |
1.31 |
|
|
$ |
4.82 |
|
|
$ |
4.03 |
|
Diluted |
$ |
1.64 |
|
|
$ |
1.28 |
|
|
$ |
4.73 |
|
|
$ |
3.96 |
|
Weighted average shares
outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
45,896 |
|
|
|
49,414 |
|
|
|
47,252 |
|
|
|
49,804 |
|
Diluted |
|
46,707 |
|
|
|
50,417 |
|
|
|
48,092 |
|
|
|
50,708 |
|
TEXTAINER GROUP HOLDINGS LIMITED AND
SUBSIDIARIESConsolidated Balance Sheets(Unaudited)(All
currency expressed in United States dollars in thousands, except
share data) |
|
|
|
September 30,2022 |
|
|
December 31,2021 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
143,652 |
|
|
$ |
206,210 |
|
Accounts receivable, net of allowance of $1,694 and $1,290,
respectively |
|
|
167,990 |
|
|
|
125,746 |
|
Net investment in finance leases, net of allowance of $204 and
$100, respectively |
|
|
131,477 |
|
|
|
113,048 |
|
Container leaseback financing receivable, net of allowance of $49
and $38, respectively |
|
|
52,919 |
|
|
|
30,317 |
|
Trading containers |
|
|
7,565 |
|
|
|
12,740 |
|
Containers held for sale |
|
|
19,578 |
|
|
|
7,007 |
|
Prepaid expenses and other current assets |
|
|
15,616 |
|
|
|
14,184 |
|
Due from affiliates, net |
|
|
2,723 |
|
|
|
2,376 |
|
Total current assets |
|
|
541,520 |
|
|
|
511,628 |
|
Restricted cash |
|
|
108,980 |
|
|
|
76,362 |
|
Marketable securities |
|
|
2,540 |
|
|
|
2,866 |
|
Containers, net of accumulated
depreciation of $1,998,515 and $1,851,664, respectively |
|
|
4,469,642 |
|
|
|
4,731,878 |
|
Net investment in finance
leases, net of allowance of $899 and $643 respectively |
|
|
1,721,419 |
|
|
|
1,693,042 |
|
Container leaseback financing
receivable, net of allowance of $54 and $75, respectively |
|
|
784,972 |
|
|
|
323,830 |
|
Derivative instruments |
|
|
152,701 |
|
|
|
12,278 |
|
Deferred taxes |
|
|
1,055 |
|
|
|
1,073 |
|
Other assets |
|
|
14,206 |
|
|
|
14,487 |
|
Total assets |
|
$ |
7,797,035 |
|
|
$ |
7,367,444 |
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
22,178 |
|
|
$ |
22,111 |
|
Container contracts payable |
|
|
6,521 |
|
|
|
140,968 |
|
Other liabilities |
|
|
4,994 |
|
|
|
4,895 |
|
Due to container investors, net |
|
|
19,215 |
|
|
|
17,985 |
|
Debt, net of unamortized costs of $8,113 and $8,624,
respectively |
|
|
400,205 |
|
|
|
380,207 |
|
Total current liabilities |
|
|
453,113 |
|
|
|
566,166 |
|
Debt, net of unamortized costs
of $29,192 and $32,019, respectively |
|
|
5,293,242 |
|
|
|
4,960,313 |
|
Derivative instruments |
|
|
- |
|
|
|
2,139 |
|
Income tax payable |
|
|
11,543 |
|
|
|
10,747 |
|
Deferred taxes |
|
|
13,759 |
|
|
|
7,589 |
|
Other liabilities |
|
|
35,009 |
|
|
|
39,236 |
|
Total liabilities |
|
|
5,806,666 |
|
|
|
5,586,190 |
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative redeemable perpetual preferred shares, $0.01 par value,
$25,000 liquidation preference per share. Authorized
10,000,000 shares; 12,000 shares issued and outstanding
(equivalent to 12,000,000 depositary shares at $25.00
liquidation preference per depositary share) |
|
|
300,000 |
|
|
|
300,000 |
|
Common shares, $0.01 par value. Authorized 140,000,000 shares;
59,711,457 shares issued and 44,946,097 shares
outstanding at 2022; 59,503,710 shares issued and 48,831,855
shares outstanding at 2021 |
|
|
597 |
|
|
|
595 |
|
Treasury shares, at cost, 14,765,360 and 10,671,855 shares,
respectively |
|
|
(292,234 |
) |
|
|
(158,459 |
) |
Additional paid-in capital |
|
|
438,718 |
|
|
|
428,945 |
|
Accumulated other comprehensive income |
|
|
150,448 |
|
|
|
9,750 |
|
Retained earnings |
|
|
1,392,840 |
|
|
|
1,200,423 |
|
Total shareholders’ equity |
|
|
1,990,369 |
|
|
|
1,781,254 |
|
Total liabilities and shareholders' equity |
|
$ |
7,797,035 |
|
|
$ |
7,367,444 |
|
|
|
TEXTAINER GROUP HOLDINGS LIMITED AND
SUBSIDIARIESConsolidated Statements of Cash
Flows(Unaudited)(All currency expressed in United States dollars in
thousands) |
|
|
|
Nine Months Ended September 30, |
|
|
|
2022 |
|
|
2021 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
242,601 |
|
|
$ |
206,434 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
218,688 |
|
|
|
210,950 |
|
Bad debt expense (recovery), net |
|
|
743 |
|
|
|
(1,225 |
) |
Container write-off (recovery) from lessee default, net |
|
|
1,910 |
|
|
|
(4,835 |
) |
Unrealized loss (gain) on financial instruments, net |
|
|
326 |
|
|
|
(4,681 |
) |
Amortization of unamortized debt issuance costs and accretion
of bond discounts |
|
|
7,710 |
|
|
|
7,153 |
|
Debt termination expense |
|
|
— |
|
|
|
15,078 |
|
Gain on sale of owned fleet containers, net |
|
|
(61,914 |
) |
|
|
(51,222 |
) |
Share-based compensation expense |
|
|
5,315 |
|
|
|
4,208 |
|
Changes in operating assets and liabilities |
|
|
122,272 |
|
|
|
1,757 |
|
Total adjustments |
|
|
295,050 |
|
|
|
177,183 |
|
Net cash provided by operating activities |
|
|
537,651 |
|
|
|
383,617 |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Purchase of containers and fixed assets |
|
|
(385,087 |
) |
|
|
(1,689,588 |
) |
Payment on container leaseback financing receivable |
|
|
(533,867 |
) |
|
|
(18,705 |
) |
Proceeds from sale of containers and fixed assets |
|
|
143,849 |
|
|
|
112,745 |
|
Receipt of principal payments on container leaseback financing
receivable |
|
|
42,806 |
|
|
|
21,081 |
|
Net cash used in investing activities |
|
|
(732,299 |
) |
|
|
(1,574,467 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Proceeds from debt |
|
|
989,650 |
|
|
|
4,229,756 |
|
Payments on debt |
|
|
(640,063 |
) |
|
|
(3,199,942 |
) |
Payment of debt issuance costs |
|
|
(4,326 |
) |
|
|
(21,107 |
) |
Proceeds from container leaseback financing liability, net |
|
|
— |
|
|
|
16,305 |
|
Principal repayments on container leaseback financing liability,
net |
|
|
(599 |
) |
|
|
(3,128 |
) |
Issuance of preferred shares, net of underwriting discount |
|
|
— |
|
|
|
290,550 |
|
Purchase of treasury shares |
|
|
(133,775 |
) |
|
|
(45,789 |
) |
Issuance of common shares upon exercise of share options |
|
|
4,460 |
|
|
|
6,789 |
|
Dividends paid on common shares |
|
|
(35,278 |
) |
|
|
— |
|
Dividends paid on preferred shares |
|
|
(14,906 |
) |
|
|
(4,433 |
) |
Purchase of noncontrolling interest |
|
|
— |
|
|
|
(21,500 |
) |
Other |
|
|
— |
|
|
|
(654 |
) |
Net cash provided by financing activities |
|
|
165,163 |
|
|
|
1,246,847 |
|
Effect of exchange rate
changes |
|
|
(455 |
) |
|
|
(108 |
) |
Net (decrease) increase in cash, cash equivalents and restricted
cash |
|
|
(29,940 |
) |
|
|
55,889 |
|
Cash, cash equivalents and
restricted cash, beginning of the year |
|
|
282,572 |
|
|
|
205,165 |
|
Cash, cash equivalents and
restricted cash, end of the period |
|
$ |
252,632 |
|
|
$ |
261,054 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of
cash flow information: |
|
|
|
|
|
|
|
|
Cash paid for interest expense and realized loss and settlement on
derivative instruments, net |
|
$ |
104,844 |
|
|
$ |
115,454 |
|
Income taxes paid |
|
$ |
257 |
|
|
$ |
1,559 |
|
Receipt of payments on finance leases, net of income earned |
|
$ |
143,317 |
|
|
$ |
47,490 |
|
Supplemental disclosures of
noncash operating activities: |
|
|
|
|
|
|
|
|
Receipt of marketable securities from a lessee |
|
$ |
- |
|
|
$ |
5,789 |
|
Right-of-use asset for leased property |
|
$ |
- |
|
|
$ |
272 |
|
Supplemental disclosures of
noncash investing activities: |
|
|
|
|
|
|
|
|
(Decrease) increase in accrued container purchases |
|
$ |
(134,447 |
) |
|
$ |
51,147 |
|
Containers placed in finance leases |
|
$ |
217,659 |
|
|
$ |
902,748 |
|
Use of Non-GAAP Financial
Information
To supplement Textainer’s consolidated financial statements
presented in accordance with U.S. generally accepted accounting
principles (“GAAP”), the company uses non-GAAP measures of certain
components of financial performance. These non-GAAP measures
include adjusted net income, adjusted net income per diluted common
share, adjusted EBITDA, headline earnings and headline earnings per
basic and diluted common share.
Management believes that adjusted net income and adjusted net
income per diluted common share are useful in evaluating
Textainer’s operating performance. Adjusted net income is defined
as net income attributable to common shareholders excluding debt
termination expense, unrealized (loss) gain on derivative
instruments and marketable securities and the related impacts on
income taxes. Management considers adjusted EBITDA a widely used
industry measure and useful in evaluating Textainer’s ability to
fund growth and service long-term debt and other fixed obligations.
Headline earnings is reported as a requirement of Textainer’s
listing on the JSE. Headline earnings and headline earnings per
basic and diluted common shares are calculated from net income
which has been determined based on GAAP.
Reconciliations of these non-GAAP measures to the most directly
comparable GAAP measures are included in the tables below for the
three and nine months ended September 30, 2022 and 2021 and for the
three months ended June 30, 2022.
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, |
|
|
Nine Months Ended, |
|
|
September 30,2022 |
|
|
June 30,2022 |
|
|
September 30,2021 |
|
|
September 30,2022 |
|
|
September 30,2021 |
|
|
(Dollars in thousands, |
|
|
(Dollars in thousands, |
|
|
except per share amounts) |
|
|
except per share amounts) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
Reconciliation of adjusted net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
common shareholders |
$ |
76,400 |
|
|
$ |
78,590 |
|
|
$ |
64,729 |
|
|
$ |
227,695 |
|
|
$ |
200,574 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt termination expense |
|
— |
|
|
|
— |
|
|
|
11,866 |
|
|
|
— |
|
|
|
15,078 |
|
Unrealized loss (gain) on financial instruments, net |
|
204 |
|
|
|
(85 |
) |
|
|
(83 |
) |
|
|
326 |
|
|
|
(4,681 |
) |
Loss on settlement of pre-existing management agreement |
|
— |
|
|
|
— |
|
|
|
116 |
|
|
|
— |
|
|
|
116 |
|
Impact of reconciling items on income tax |
|
(42 |
) |
|
|
17 |
|
|
|
(126 |
) |
|
|
(68 |
) |
|
|
(229 |
) |
Adjusted net
income |
$ |
76,562 |
|
|
$ |
78,522 |
|
|
$ |
76,502 |
|
|
$ |
227,953 |
|
|
$ |
210,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
per diluted common share |
$ |
1.64 |
|
|
$ |
1.63 |
|
|
$ |
1.52 |
|
|
$ |
4.74 |
|
|
$ |
4.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended, |
|
|
Nine Months Ended, |
|
|
September 30,2022 |
|
|
June 30,2022 |
|
|
September 30,2021 |
|
|
September 30,2022 |
|
|
September 30,2021 |
|
|
(Dollars in thousands) |
|
|
(Dollars in thousands) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
Reconciliation of adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
common shareholders |
$ |
76,400 |
|
|
$ |
78,590 |
|
|
$ |
64,729 |
|
|
$ |
227,695 |
|
|
$ |
200,574 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
(1,150 |
) |
|
|
(257 |
) |
|
|
(20 |
) |
|
|
(1,443 |
) |
|
|
(83 |
) |
Interest expense |
|
41,242 |
|
|
|
37,593 |
|
|
|
33,128 |
|
|
|
114,144 |
|
|
|
92,381 |
|
Debt termination expense |
|
— |
|
|
|
— |
|
|
|
11,866 |
|
|
|
— |
|
|
|
15,078 |
|
Realized loss on derivative instruments, net |
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
|
|
5,408 |
|
Unrealized loss (gain) on financial instruments, net |
|
204 |
|
|
|
(85 |
) |
|
|
(83 |
) |
|
|
326 |
|
|
|
(4,681 |
) |
Loss on settlement of pre-existing management agreement |
|
— |
|
|
|
— |
|
|
|
116 |
|
|
|
— |
|
|
|
116 |
|
Income tax expense (benefit) |
|
1,846 |
|
|
|
2,047 |
|
|
|
(59 |
) |
|
|
5,532 |
|
|
|
890 |
|
Depreciation and amortization |
|
73,238 |
|
|
|
72,957 |
|
|
|
73,641 |
|
|
|
218,688 |
|
|
|
210,950 |
|
Container write-off (recovery) from lessee default, net |
|
867 |
|
|
|
241 |
|
|
|
918 |
|
|
|
1,108 |
|
|
|
(4,835 |
) |
Adjusted
EBITDA |
$ |
192,647 |
|
|
$ |
191,086 |
|
|
$ |
184,240 |
|
|
$ |
566,050 |
|
|
$ |
515,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended, |
|
|
Nine Months Ended, |
|
|
September 30,2022 |
|
|
June 30,2022 |
|
|
September 30,2021 |
|
|
September 30,2022 |
|
|
September 30,2021 |
|
|
(Dollars in thousands, |
|
|
(Dollars in thousands, |
|
|
except per share amount) |
|
|
except per share amount) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
Reconciliation of headline earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
common shareholders |
$ |
76,400 |
|
|
$ |
78,590 |
|
|
$ |
64,729 |
|
|
$ |
227,695 |
|
|
$ |
200,574 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Container write-off (recovery) from lessee default, net |
|
867 |
|
|
|
241 |
|
|
|
918 |
|
|
|
1,108 |
|
|
|
(4,835 |
) |
Loss on settlement of pre-existing management agreement |
|
— |
|
|
|
— |
|
|
|
116 |
|
|
|
— |
|
|
|
116 |
|
Impact of reconciling items on income tax |
|
(8 |
) |
|
|
(2 |
) |
|
|
(33 |
) |
|
|
(10 |
) |
|
|
21 |
|
Headline
earnings |
$ |
77,259 |
|
|
$ |
78,829 |
|
|
$ |
65,730 |
|
|
$ |
228,793 |
|
|
$ |
195,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Headline earnings per
basic common share |
$ |
1.68 |
|
|
$ |
1.66 |
|
|
$ |
1.33 |
|
|
$ |
4.84 |
|
|
$ |
3.93 |
|
Headline earnings per
diluted common share |
$ |
1.65 |
|
|
$ |
1.63 |
|
|
$ |
1.30 |
|
|
$ |
4.76 |
|
|
$ |
3.86 |
|
Textainer (NYSE:TGH)
Historical Stock Chart
From Dec 2024 to Jan 2025
Textainer (NYSE:TGH)
Historical Stock Chart
From Jan 2024 to Jan 2025