TEXTAINER GROUP HOLDINGS LIMITED - Textainer Group Holdings Limited Reports Fourth-Quarter and Full-Year 2019 Unaudited Results

Textainer Group Holdings Limited Reports Fourth-Quarter and Full-Year 2019 Unaudited 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””)

Short-Form Announcement: Textainer Group Holdings Limited Reports Fourth-Quarter and Full-Year 2019 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 fourth-quarter and
full-year ended December 31, 2019.

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

                                                                           QTD                               Full-Year
                                                                Q4 2019              Q3 2019             2019           2018
 Lease rental income (1)                                      $  151,555          $    155,848        $ 619,760    $  612,704
 Gain on sale of owned fleet containers, net                  $    3,134          $      6,092        $  21,397    $   36,071
 Income from operations                                       $   64,579          $     53,487        $ 222,684    $  194,426
 Net income attributable to Textainer Group Holdings
   Limited common shareholders                                $   28,782          $     10,578        $  56,724    $   50,378
 Net income attributable to Textainer Group Holdings
   Limited common shareholders per diluted common
   share                                                      $     0.50          $       0.18        $    0.99    $     0.88
 Adjusted net income (2)                                      $   10,977          $     12,950        $  55,375    $   51,471
 Adjusted net income per diluted common share (2)             $     0.19          $       0.22        $    0.96    $     0.90
 Adjusted EBITDA (2)                                          $  113,187          $    118,254        $ 464,315    $  443,090
 Headline earnings (2)                                        $   17,844          $     15,739        $  61,393    $   70,271
 Headline earnings per diluted common share (2)               $     0.31          $       0.27        $    1.07    $     1.22
 Net asset value per diluted common share attributable
  to the equity holders of the Company                        $    22.17          $      21.60        $   22.17    $    21.02
 Average fleet utilization                                         96.4%                 97.3%            97.4%         98.1%
 Total fleet size at end of period (TEU)                       3,500,812             3,557,466        3,500,812     3,354,724
 Owned percentage of total fleet at end of period                  85.4%                 80.7%            85.4%         78.9%

(1) “Lease rental income” includes both owned and managed fleet lease rental income. Q3 2019 amount has been adjusted to
include a $1,183 reclassification from trading container sales proceeds, with no effect on the income from operations, net income
and adjusted net income.

(2) “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 measures, and a reconciliation of GAAP net income to Adjusted net income, GAAP net income to Adjusted EBITDA and GAAP
net income to Headline earnings.

* Net income of $28.8 million for the fourth quarter and $56.7 million for the full year. These figures include a $14.0
million gain recorded during the fourth quarter related to a cash distribution from the Hanjin bankruptcy estate;

* Adjusted net income of $11.0 million for the fourth quarter, or $0.19 per diluted common share, as compared to $13.0
million, or $0.22 per diluted common share in the third quarter of 2019. Adjusted net income of $55.4 million for the full
year, or $0.96 per diluted common share, as compared to $51.5 million, or $0.90 per diluted common share in the prior
year;
* Adjusted EBITDA of $113.2 million for the fourth quarter, as compared to $118.3 million in the third quarter of 2019.
Adjusted EBITDA of $464.3 million for the full year, as compared to $443.1 million in the prior year;

* Headline earnings of $17.8 million for the fourth quarter, or $0.31 per diluted common share, as compared to $15.7
million, or $0.27 per diluted common share in the third quarter of 2019. Headline earnings of $61.4 million for the full
year, or $1.07 per diluted common share, as compared to $70.3 million, or $1.22 per diluted common share in the prior
year;

* Utilization averaged 96.4% for the fourth quarter, as compared to 97.3% for the third quarter of 2019. Utilization
averaged 97.4% for the full year, as compared to 98.1% for the prior year;

* Container investments of approximately $28 million during the fourth quarter, for a total of $739 million for the full
year. In addition, we also acquired a container investment company named Leased Assets Pool Company Limited
(“LAPCO”) on December 31, 2019. LAPCO’s assets consisted primarily of approximately 165,000 TEU of containers
previously part of our managed fleet;

* Repurchased approximately 638,000 shares and 879,000 shares of common stock during the fourth quarter and the
full year, respectively, under the share repurchase program authorized on August 29, 2019; and

* Commenced a secondary, or dual, listing of Textainer’s common shares on the Main Board of the Johannesburg Stock
Exchange (“JSE”) on December 11, 2019.

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 2019 will be held at 5:00 pm U.S.
Eastern Time on Tuesday, February 11, 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 more than 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/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.

11 February 2020

Sponsor:
Investec Bank Limited

Date: 12-02-2020 07:05:00
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.