To view the PDF file, sign up for a MySharenet subscription.

TEXTAINER GROUP HOLDINGS LIMITED - Textainer Group Holdings Limited Reports Fourth-Quarter and Full-Year 2020 Results

Release Date: 18/02/2021 08:30
Code(s): TXT     PDF:  
Wrap Text
Textainer Group Holdings Limited Reports Fourth-Quarter and Full-Year 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 Fourth-Quarter and Full-Year 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 financial results for the
fourth-quarter and full-year ended December 31, 2020.


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

                                                                                QTD                                     Full-Year
                                                              Q4 2020         Q3 2020          Q4 2019           2020               2019
 Lease rental income                                      $   161,491       $   149,130    $     151,555    $    600,873      $      619,760
 Gain on sale of owned fleet containers, net              $     7,820       $     7,976    $       3,134    $     27,230      $       21,397
 Income from operations                                   $    71,816       $    54,109    $      64,579    $    221,599      $      222,684
 Net income attributable to Textainer Group Holdings
   Limited common shareholders                            $    44,260       $    16,952    $      28,782    $     72,822      $       56,724
 Net income attributable to Textainer Group Holdings
   Limited common shareholders per diluted common share   $      0.87       $      0.32    $        0.50    $       1.36      $         0.99
 Adjusted net income (1)                                  $    41,147       $    21,634    $      10,977    $     87,277      $       55,375
 Adjusted net income per diluted common share (1)         $      0.81       $      0.41    $        0.19    $       1.63      $         0.96
 Adjusted EBITDA (1)                                      $   136,834       $   118,960    $     113,187    $    476,210      $      464,315
 Headline earnings (1)                                    $    44,841       $    19,913    $      17,844    $     81,931      $       61,393
 Headline earnings per diluted common share (1)           $      0.88       $      0.38    $        0.31    $       1.53      $         1.07
 Net asset value per diluted common share attributable
  to the equity holders of the Company                    $     24.94       $     23.99    $       22.17    $      24.94      $        22.17
 Average fleet utilization (2)                                  98.5%             96.0%            96.4%           96.6%               97.4%
 Total fleet size at end of period (TEU) (3)                3,774,053         3,599,889        3,500,812       3,774,053           3,500,812
 Owned percentage of total fleet at end of period               88.0%             87.1%            85.4%           88.0%               85.4%




(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 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.
•   Net income of $44.3 million for the fourth quarter or $0.87 per diluted common share and $72.8
    million for the full year or $1.36 per diluted common share;
•   Adjusted net income of $41.1 million for the fourth quarter, or $0.81 per diluted common share, as
    compared to $21.6 million, or $0.41 per diluted common share in the third quarter of 2020.
    Adjusted net income of $87.3 million for the full year, or $1.63 per diluted common share, an
    improvement of 58% as compared to $55.4 million, or $0.96 per diluted common share in the prior
    year;
•   Adjusted EBITDA of $136.8 million for the fourth quarter, as compared to $119.0 million in the third
    quarter of 2020. Adjusted EBITDA of $476.2 million for the full year, as compared to $464.3 million
    in the prior year;
•   Headline earnings of $44.8 million for the fourth quarter, or $0.88 per diluted common share as
    compared to $19.9 million or $0.38 per diluted common share in the third quarter of 2020. Headline
    earnings of $81.9 million for the full year, or $1.53 per diluted common share as compared to $61.4
    million or $1.07 per diluted common share in the prior year;
•   Utilization averaged 98.5% for the fourth quarter, 96.6% for the full year, and is currently at 99.5%;
•   Invested $470 million in containers delivered during the fourth quarter, for a total investment of
    $1,080 million delivered through the end of the year, virtually all of which are currently on lease;
•   Our fleet reached a significant milestone, surpassing 4 million CEU as of December 31, 2020;
•   Issued $550 million of fixed-rate asset backed notes on February 10, 2021. Proceeds were used to
    pay down variable-rate bank facilities to create borrowing capacity for additional container
    investments; and
•   Repurchased 779,034 shares and 6,736,493 shares of common stock at an average price of $15.00
    per share and $10.13 per share during the fourth quarter and full year of 2020, respectively, under
    the share repurchase program. As of the end of the fourth quarter, the remaining authority under
    the share repurchase program totaled $23.2 million.

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 fourth quarter and full year of 2020 will be held
at 5:00 pm Eastern Time on Wednesday, February 17, 2021. 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 3.8 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 150,000 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 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.


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/2021/jse/isse/TXTE/ResultsQ4.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.

18 February 2021

Sponsor:
Investec Bank Limited

Date: 18-02-2021 08:30:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story