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

Release Date: 05/05/2020 07:05
Code(s): TXT     PDF:  
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Textainer Group Holdings Limited Reports First-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 First-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 three-months ended March 31, 2020.

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

                                                                                             QTD
                                                                                Q1 2020              Q4 2019

    Lease rental income                                                       $ 145,478        $     151,555
    Gain on sale of owned fleet containers, net                               $   5,794        $       3,134
    Income from operations                                                    $  46,409        $      64,579
    Net (loss) income attributable to Textainer Group Holdings
      Limited common shareholders                                             $ (4,379)        $      28,782
    Net (loss) income attributable to Textainer Group Holdings
      Limited common shareholders per diluted common share                    $  (0.08)        $        0.50
    Adjusted net income (1)                                                   $   9,702        $      10,977
    Adjusted net income per diluted common share (1)                          $    0.17        $        0.19
    Adjusted EBITDA (1)                                                       $ 117,065        $     113,187
    Headline earnings (1)                                                     $      46        $      17,844
    Headline earnings per diluted common share (1)                            $      -         $        0.31
    Net asset value per diluted common share attributable
     to the equity holders of the Company                                     $   22.43        $       22.17
                                (2)
    Average fleet utilization                                                     96.2%                96.4%
    Total fleet size at end of period (TEU) (3)                               3,450,680            3,500,812
    Owned percentage of total fleet at end of period                              85.6%                85.4%

Footnotes:
     (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
     (loss) income to Adjusted net income, GAAP net (loss) income to Adjusted EBITDA and GAAP net (loss)
     income 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.




*Net loss of $4.4 million for the first quarter, which includes an unrealized loss on derivatives of $14.9
million;

* Adjusted net income o of $9.7 million for the first quarter, or $0.17 per diluted common share, as
compared to $11.0 million, or $0.19 per diluted common share in the fourth quarter of 2019;

* Adjusted EBITDA of $117.1 million for the first quarter, as compared to $113.2 million in the fourth
quarter of 2019;

* Headline earnings of $46 for the first quarter, or $0.00 per diluted common share, as compared to
$17.8 million, or $0.31 per diluted common share in the fourth quarter of 2019;

* Utilization averaged 96.2% for the first quarter, as compared to 96.4% for the fourth quarter of 2019;

* Minimal container investments during the first quarter; and

* Repurchased approximately 1,947,000 shares of common stock at an average price of $7.84 per share
during the first quarter under the share repurchase program authorized on August 29, 2019. As
announced on March 30, 2020, Textainer's Board of Directors authorized an increase to the share
repurchase program for an additional $25 million of the Company's outstanding shares.

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 first quarter 2020 will be held at 5:00 pm U.S.
Eastern Time on Monday, May 04, 2020. The dial-in number for the conference call is 1-855-327-6837
(U.S. & Canada) and 1-631-891-4304 (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/ResultsQ1.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.

05 May 2020

Sponsor:
Investec Bank Limited

Date: 05-05-2020 07:05:00
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