Wrap Text
Textainer Group Holdings Limited reports third-quarter 2021 results and reinstates quarterly dividend
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 Third-Quarter 2021 Results and Reinstates Quarterly Dividend
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 third-quarter ended September 30, 2021.
Key Financial Information (in thousands of U.S. dollars, except for per share and TEU amounts) and
Business Highlights:
Q TD
Q 3 2021 Q 2 2021 Q 3 2020
Lease rental income $ 195,830 $ 187,434 $ 149,130
Gain on sale of owned fleet containers, net $ 20,028 $ 18,836 $ 7,976
Income from operations $ 114,037 $ 110,007 $ 54,109
Net income attributable to common shareholders $ 64,729 $ 73,795 $ 16,952
Net income attributable to common shareholders
per diluted common share $ 1.28 $ 1.45 $ 0.32
(1)
Adjusted net income $ 76,502 $ 75,204 $ 21,634
(1)
Adjusted net income per diluted common share $ 1.52 $ 1.48 $ 0.41
Adjusted EBITDA (1) $ 184,240 $ 178,448 $ 118,960
(1)
Headline earnings $ 65,993 $ 74,047 $ 19,913
(1)
Headline earnings per diluted common share $ 1.31 $ 1.46 $ 0.38
Net asset value per diluted common share attributable
to the equity holders of the Company $ 35.16 $ 30.77 $ 23.99
(2)
Average fleet utilization 99.8% 99.8% 96.0%
Total fleet size at end of period (TEU) (3) 4,264,946 4,101,575 3,599,889
Owned percentage of total fleet at end of period 92.6% 90.6% 87.1%
(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 and units manufactured for us but not yet 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 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 $64.7 million for the third quarter, or $1.28 per diluted common share, as compared
to $73.8 million, or $1.45 per diluted common share in the second quarter of 2021;
- Adjusted net income of $76.5 million for the third quarter, or $1.52 per diluted common share, as
compared to $75.2 million, or $1.48 per diluted common share in the second quarter of 2021;
- Adjusted EBITDA of $184.2 million for the third quarter, as compared to $178.4 million in the second
quarter of 2021;
- Headline earnings of $66.0 million for the third quarter, or $1.31 per diluted common share as
compared to $74.0 million or $1.46 per diluted common share in the second quarter of 2021;
- Average and ending utilization rate for the third quarter of 99.8%;
- Invested $622 million in containers delivered during the third quarter, for a total $1.7 billion
delivered through the first nine months of the year, virtually all of which are currently on lease with
tenures in excess of 12 years;
- As previously announced, issued $600 million of fixed-rate asset backed notes with an 11-year tenor
on August 11, 2021. Additionally, issued a $209 million fixed-rate term loan with a 7-year tenor on
October 18, 2021. The resulting proceeds from both issuances were used to pay down other debt
facilities and create additional borrowing capacity for future container investments. The successful
closing of these financings in turn further lowered our average effective interest rate to 2.60% as of
the end of the quarter;
- As previously announced, repaid in full $208 million of term loans on August 20, 2021, which carried
a blended interest rate of 4.30% and had an original maturity in February 2025. In accordance with
the early redemption provisions of the term loans, Textainer made a loan termination payment of
$10.6 million and incurred a write-off of unamortized debt issuance costs of $1.3 million;
- As previously announced, completed an underwritten public offering of 6,000,000 depositary
shares, each representing a 1/1,000th interest in a share of its 6.25% Series B cumulative
redeemable perpetual preference shares, for an aggregate public offering price of $150 million;
- Repurchased 523,662 shares of common stock at an average price of $31.63 per share during the
third quarter. Textainer's board of directors authorized a $50 million increase to the share
repurchase program of the Company's outstanding shares in September 2021, bringing its total
authorization level to $200 million since inception. As of the end of the third quarter, the remaining
authority under the share repurchase program totaled $77.5 million;
- Textainer’s board of directors approved and declared a quarterly preferred cash dividend on its
7.00% Series A and its 6.25% Series B cumulative redeemable perpetual preference shares, payable
on December 15, 2021, to holders of record as of December 3, 2021; and
- Textainer’s board of directors approved the reinstatement of the common dividend program and
declared a $0.25 per common share cash dividend in the third quarter of 2021, payable on
December 15, 2021 to holders of record as of December 3, 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 third quarter 2021 will be held at 5:00 pm
Eastern Time on Thursday, November 4, 2021. The dial-in number for the conference call is 1-855-327-
6838 (U.S. & Canada) and 1-604-235-2082 (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 4.3 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/ResultsQ3.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.
4 November 2021
Sponsor:
Investec Bank Limited
Date: 05-11-2021 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.
Sharenet Sites 
