Textainer Group Holdings Limited Reports Second-Quarter 2021 Results
Textainer Group Holdings Limited Reports Second-Quarter 2021 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 2021 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, 2021. Key Financial Information (in thousands of U.S. dollars, except for per share and TEU amounts) and Business Highlights: Q TD Q 2 2021 Q 1 2021 Q 2 2020 Lease rental income $ 187,434 $ 169,244 $ 144,774 Gain on sale of owned fleet containers, net $ 18,836 $ 12,358 $ 5,640 Income from operations $ 110,007 $ 92,101 $ 49,265 Net income attributable to common shareholders $ 73,795 $ 62,050 $ 15,989 Net income attributable to common shareholders per diluted common share $ 1.45 $ 1.22 $ 0.30 (1) Adjusted net income $ 75,204 $ 59,152 $ 14,794 (1) Adjusted net income per diluted common share $ 1.48 $ 1.16 $ 0.28 Adjusted EBITDA (1) $ 178,448 $ 153,110 $ 109,977 Headline earnings (1) $ 74,047 $ 55,560 $ 17,131 (1) Headline earnings per diluted common share $ 1.46 $ 1.09 $ 0.32 Net asset value per diluted common share attributable to the equity holders of the Company $ 30.77 $ 26.48 $ 23.09 (2) Average fleet utilization 99.8% 99.6% 95.4% (3) Total fleet size at end of period (TEU) 4,101,575 3,961,491 3,458,080 Owned percentage of total fleet at end of period 90.6% 90.2% 86.1% (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 $73.8 million for the second quarter, or $1.45 per diluted common share, as compared to $62.1 million, or $1.22 per diluted common share in the first quarter of 2021; - Adjusted net income of $75.2 million for the second quarter, or $1.48 per diluted common share, as compared to $59.2 million, or $1.16 per diluted common share in the first quarter of 2021; - Adjusted EBITDA of $178.4 million for the second quarter, as compared to $153.1 million in the first quarter of 2021; - Headline earnings of $74.0 million for the second quarter, or $1.46 per diluted common share as compared to $55.6 million or $1.09 per diluted common share in the first quarter of 2021; - Average and ending utilization rate for the second quarter of 99.8%; - Invested $501 million in containers delivered during the second quarter, for a total $1.1 billion delivered through the first six months of the year, virtually all of which are currently on lease with tenures in excess of 12 years; - Repurchased 615,680 shares of common stock at an average price of $29.84 per share during the second quarter under the share repurchase program. As of the end of the second quarter, the remaining authority under the share repurchase program totaled $44.1 million; - Priced $600 million of fixed-rate asset backed notes on August 3, 2021 with a blended interest rate of 1.99% and 11-year tenor. The issuance is expected to close on August 11, 2021 and the resulting proceeds will be used to pay down other debt facilities and create additional borrowing capacity for future container investments; and - Textainer’s board of directors approved and declared a quarterly preferred cash dividend on its 7% Series A cumulative redeemable perpetual preference shares, payable on September 15, 2021, to holders of record as of August 31, 2021. 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 2021 will be held at 5:00 pm Eastern Time on Thursday, August 5, 2021. The dial-in number for the conference call is 1-866-269-4266 (U.S. & Canada) and 1-323-347-3282 (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 4.1 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 firstname.lastname@example.org 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/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. 5 August 2021 Sponsor: Investec Bank Limited Date: 06-08-2021 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.
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