Textainer Group Fleet Size Grows by 12 Percent evergreen shipping tracking over Past Twelve Months « World Leasing News
HAMILTON, Bermuda–( BUSINESS WIRE )–Textainer Group Holdings Limited (NYSE: TGH) ( Textainer , the Company , we and our ), the world s largest lessor of intermodal containers based on fleet size, reported third quarter 2013 results.
Our underlying business fundamentals were solid, as we achieved more than 8 percent growth in revenue and EBITDA compared to the year ago quarter. Most notably, lease rental income grew by 21 percent to $118 million compared to the year ago quarter. evergreen shipping tracking Our net income was negatively affected, however, by the need to reserve for certain uncollectable accounts receivable and an impairment that we recorded on certain unrecoverable containers, commented Philip evergreen shipping tracking K. Brewer, President and Chief Executive Officer of Textainer.
Historically, when a lessee defaults, we recover more than 90 percent of our containers, with about 80 percent evergreen shipping tracking coming back within 6 months from the start of recovery efforts and the remaining 10 to 20 percent recovered in the subsequent 6 to 12 months. Currently, for certain smaller lessees in default, we believe recoveries may not follow this pattern as these containers are in areas of China where recovery is often not economical. We recorded a $4.7 million impairment for these containers in the third quarter. This impairment applies to a limited group of smaller shipping lines that account for less than 0.5 percent of our fleet. evergreen shipping tracking Most of these lessees were acquired through earlier fleet acquisitions. We do not expect similar losses with any of our large lessees, continued Mr. Brewer. The third quarter also included bad debt expense above our normal run rate primarily related to recovery costs for a previously identified evergreen shipping tracking customer evergreen shipping tracking that filed for bankruptcy. Container recoveries from this customer are over 95% percent, consistent with historical recovery experience. Our DSO has improved significantly year over year and we expect our normalized evergreen shipping tracking bad debt run-rate to trend around 0.5 to 1 percent of revenue.
We continued to invest throughout the quarter with total containers ordered over the last 12 months for delivery in 2013 of $827 million. Additionally, we are planning to invest approximately $10 million in tank containers with Trifleet over the coming months, continued Mr. Brewer. evergreen shipping tracking Our fleet size has grown by 12 percent over the past twelve months to almost 3.0 million TEU which will be a major milestone for Textainer. Utilization is stable, averaging 94.1 percent for the quarter and currently it is slightly higher at 94.2 percent.
Business Highlights: Invested evergreen shipping tracking $629 million in new and used containers year-to-date following $198 million invested in new containers in the fourth quarter of 2012 for lease out in 2013, continuing our strong pace of expansion; Increased total fleet size by 11.7 percent over the last year to close to 3 million TEU today, reflecting our strong investment in new and purchase leaseback containers; Grew lease rental income by 20.7 percent in the quarter to $118 million evergreen shipping tracking compared evergreen shipping tracking to the year ago quarter; Lowered our funding costs and locked in attractive long-term rates as we established a $300 million asset-backed revolving evergreen shipping tracking credit facility at LIBOR plus 2.25 percent and issued $300.9 million of asset-backed term notes with a coupon of 3.90 percent; Achieved average utilization evergreen shipping tracking of 94.1 percent during the quarter and is 94.2 percent today; and Day Sales Outstanding improved by 8 percent compared to the year ago quarter.
HAMILTON, Bermuda–( BUSINESS WIRE )–Textainer Group Holdings Limited (NYSE: TGH) ( Textainer , the Company , we and our ), the world s largest lessor of intermodal containers based on fleet size, reported third quarter 2013 results.
Our underlying business fundamentals were solid, as we achieved more than 8 percent growth in revenue and EBITDA compared to the year ago quarter. Most notably, lease rental income grew by 21 percent to $118 million compared to the year ago quarter. evergreen shipping tracking Our net income was negatively affected, however, by the need to reserve for certain uncollectable accounts receivable and an impairment that we recorded on certain unrecoverable containers, commented Philip evergreen shipping tracking K. Brewer, President and Chief Executive Officer of Textainer.
Historically, when a lessee defaults, we recover more than 90 percent of our containers, with about 80 percent evergreen shipping tracking coming back within 6 months from the start of recovery efforts and the remaining 10 to 20 percent recovered in the subsequent 6 to 12 months. Currently, for certain smaller lessees in default, we believe recoveries may not follow this pattern as these containers are in areas of China where recovery is often not economical. We recorded a $4.7 million impairment for these containers in the third quarter. This impairment applies to a limited group of smaller shipping lines that account for less than 0.5 percent of our fleet. evergreen shipping tracking Most of these lessees were acquired through earlier fleet acquisitions. We do not expect similar losses with any of our large lessees, continued Mr. Brewer. The third quarter also included bad debt expense above our normal run rate primarily related to recovery costs for a previously identified evergreen shipping tracking customer evergreen shipping tracking that filed for bankruptcy. Container recoveries from this customer are over 95% percent, consistent with historical recovery experience. Our DSO has improved significantly year over year and we expect our normalized evergreen shipping tracking bad debt run-rate to trend around 0.5 to 1 percent of revenue.
We continued to invest throughout the quarter with total containers ordered over the last 12 months for delivery in 2013 of $827 million. Additionally, we are planning to invest approximately $10 million in tank containers with Trifleet over the coming months, continued Mr. Brewer. evergreen shipping tracking Our fleet size has grown by 12 percent over the past twelve months to almost 3.0 million TEU which will be a major milestone for Textainer. Utilization is stable, averaging 94.1 percent for the quarter and currently it is slightly higher at 94.2 percent.
Business Highlights: Invested evergreen shipping tracking $629 million in new and used containers year-to-date following $198 million invested in new containers in the fourth quarter of 2012 for lease out in 2013, continuing our strong pace of expansion; Increased total fleet size by 11.7 percent over the last year to close to 3 million TEU today, reflecting our strong investment in new and purchase leaseback containers; Grew lease rental income by 20.7 percent in the quarter to $118 million evergreen shipping tracking compared evergreen shipping tracking to the year ago quarter; Lowered our funding costs and locked in attractive long-term rates as we established a $300 million asset-backed revolving evergreen shipping tracking credit facility at LIBOR plus 2.25 percent and issued $300.9 million of asset-backed term notes with a coupon of 3.90 percent; Achieved average utilization evergreen shipping tracking of 94.1 percent during the quarter and is 94.2 percent today; and Day Sales Outstanding improved by 8 percent compared to the year ago quarter.
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