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TEXTAINER GROUP HOLDINGS LIMITED - Textainer Group Holdings Limited Reports Second-Quarter 2020 Results

Release Date: 14/08/2020 08:40
Code(s): TXT     PDF:  
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Textainer Group Holdings Limited Reports Second-Quarter 2020 Results

TEXTAINER GROUP HOLDINGS LIMITED
Incorporated in Bermuda
Company number: EC18896
NYSE share code: TGH
JSE share code: TXT
ISIN: BMG8766E1093
LEI: 529900OHEYRATAFMIT89
(“Textainer”, “the Company”, “we” and “our””)

Textainer Group Holdings Limited Reports Second-Quarter 2020 Results

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 unaudited financial results
for the second quarter ended June 30, 2020.

Key Financial Information (in thousands of U.S. dollars, except for per share and TEU amounts) and
Business Highlights:

                                                                                          QTD
                                                                        Q2 2020         Q1 2020            Q2 2019
Lease rental income                                                $    144,774     $      145,478     $     156,243
Gain on sale of owned fleet containers, net                        $      5,640     $        5,794     $       5,404
Income from operations                                             $     49,265     $       46,409     $      45,918
Net income (loss) attributable to Textainer Group Holdings
  Limited common shareholders                                      $     15,989     $       (4,379)    $         314
Net income (loss) attributable to Textainer Group Holdings
  Limited common shareholders per diluted common share             $       0.30     $        (0.08)    $        0.01
Adjusted net income (1)                                            $     14,794     $        9,702     $       9,006
Adjusted net income per diluted common share (1)                   $       0.28     $         0.17     $        0.16
Adjusted EBITDA (1) (4)                                            $    109,977     $      110,439     $     114,745
Headline earnings (1)                                              $     17,131     $           46     $      10,000
Headline earnings per diluted common share (1)                     $       0.32     $          -       $        0.17
Net asset value per diluted common share attributable
 to the equity holders of the Company                              $       23.09    $       22.43      $       21.35
                            (2)
Average fleet utilization                                                  95.4%           96.2%              97.9%
Total fleet size at end of period (TEU) (3)                            3,458,080       3,450,680          3,601,681
Owned percentage of total fleet at end of period                           86.1%           85.6%              80.9%



      (1) “Adjusted net income”, “Adjusted EBITDA” and “Headline earnings” are non-GAAP measures and are
      described below under “Use of Non-GAAP Measures”. Also see details in our full announcement for certain
      qualifications and limitations on the Use of Non-GAAP Financial Information, and a reconciliation of GAAP net
      income (loss) to Adjusted net income, GAAP net income (loss) to Adjusted EBITDA and GAAP net income
      (loss) to Headline earnings.

      (2) Utilization is computed by dividing total units on lease in CEUs (cost equivalent unit) by the total units in
      our fleet in CEUs, excluding CEUs that have been designated as held for sale units and manufactured for us
     but have not yet been delivered to a lessee. CEU is a unit of measurement based on the approximate cost of
     a container relative to the cost of a standard 20-foot dry container. These factors may differ slightly from CEU
     ratios used by others in the industry.

     (3) TEU refers to a twenty-foot equivalent unit, which is a unit of measurement used in the container
     shipping industry to compare shipping containers of various lengths to a standard 20-foot container, thus a
     20-foot container is one TEU and a 40-foot container is two TEU.

     (4) Adjusted EBITDA for the first quarter 2020 has been restated to reflect an immaterial adjustment.


* Net income of $16.0 million for the second quarter or $0.30 per diluted common share;

* Adjusted net income of $14.8 million for the second quarter, or $0.28 per diluted common share, as
compared to $9.7 million, or $0.17 per diluted common share in the first quarter of 2020;

* Adjusted EBITDA of $110.0 million for the second quarter, as compared to $110.4 million in the first
quarter of 2020;

* Headline earnings of $17.1 million for the second quarter, or $0.32 per diluted common share;

* Utilization averaged 95.4% for the second quarter, as compared to 96.2% for the first quarter of 2020;

* Container investments of approximately $190 million delivered through the first six months of the
year; and

* Repurchased 1,633,794 shares of common stock at an average price of $8.33 per share during the
second quarter under the share repurchase program.

Use of Non-GAAP Measures

U.S. securities laws require that when we publish any non-GAAP measures, we disclosure the reason for
using these non-GAAP measures and provide reconciliations to the directly comparable GAAP measures
in our full announcement. The presentation of Adjusted net income, Adjusted net income per diluted
common share, Adjusted EBITDA, Headline earnings and Headline earnings per diluted common share
are non-GAAP measures.
Conference Call

A conference call to discuss the financial results for the second quarter 2020 will be held at 5:00 pm U.S.
Eastern Time on Thursday, August 13, 2020. The dial-in number for the conference call is 1-877-407-
9039 (U.S. & Canada) and 1-201-689-8470 (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
approximately 3.5 million TEU in our owned and managed fleet. We lease containers to approximately
250 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 140,000 containers
per year for the last five years to more than 1,500 customers making us one of the largest sellers of used
containers. Textainer operates via a network of 14 offices and approximately 500 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.

Textainer Group Holdings Limited
Investor Relations
Phone: +1 (415) 658-8333
ir@textainer.com

Short-form announcement

This short-form announcement is the responsibility of Textainer’s Board of Directors and is a summary
of the information in the detailed financial results announcement. This short-form announcement does
not contain complete or full announcement details. Any investment decision by investors and/or
shareholders should be based on consideration of the full announcement. The short-form
announcement has not been audited or reviewed by Textainer's external auditors. The full
announcement may be downloaded from
https://senspdf.jse.co.za/documents/2020/jse/isse/TXTE/ResultsQ2.pdf or from Textainer's Investor
Relations website at http://investor.textainer.com, and is also available from the registered office of the
Company (Century House 16 Par-la-Ville Road, Hamilton, Bermuda, HM 08) and at the office of the
sponsor, at no charge, during normal business hours.

13 August 2020

Sponsor:
Investec Bank Limited

Date: 14-08-2020 08:40:00
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