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Aug. 7, 2014 5:16 PM ET | About: Textainer Group Holdings Limited (TGH) by: SA Transcripts
Welcome to the Textainer Group Holdings Second Quarter 2014 Earnings Call. My name is Joe and I'll be your operator for today's nyk container line call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded.
Thank you Joe. And welcome to our 2014 second quarter earnings conference call. Joining me on this morning's call are Phil Brewer, nyk container line TGH s President and Chief Executive Officer. At the end of our prepared remarks, Robert Pedersen, TEM President and Chief Executive Officer will join us for the Q&A.
Before I turn the call over to Phil, I'd like to point out that this conference call contains forward-looking statements in accordance with U.S. securities laws. These statements involve nyk container line risks and uncertainties are only predictions and may differ materially from the actual future events or results.
Finally, the company views, estimates, plans and outlook as described within this call may change subsequent to this discussion. The company is under no obligation to modify or update any or all statements that are made.
Please see the company's Annual Report on Form 20-F for the year ended December 31, 2013, filed with the Securities and Exchange Commission on March 19, 2014, and going forward nyk container line any subsequent quarterly filings on Form 6-K for additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements.
I would also like to point out that during the call, we will discuss non-GAAP financial measures. As such measures are not prepared in accordance with generally accepted accounting principles, a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP measure will be provided either on this conference call or can be found in today's earnings press release.
Good morning and welcome to Textainer s second quarter 2014 earnings conference call. I'm sure many of you have noticed that we released second quarter financial results yesterday instead of this morning. Trencor our 48% shareholder issued its quarterly earnings statement in South Africa yesterday earlier than expected. Their release incorporated references to our yet to be reported earnings.
As a precaution, Textainer issued its earnings press release earlier than normal after becoming nyk container line aware of the disclosure and discussing the matter with a New York Stock Exchange. We are pleased with our second quarter nyk container line results and the strong increase in container demand we saw during the quarter. Our average weekly container booking increased almost 50% from the first quarter to the second quarter and this strong demand has continued nyk container line through to-date.
Our depot container inventory has decline by 42%, since its high point in March. We ve not seen such a rapid pick up and container demand since 2010. Our utilization, which bottomed at 93.6% at the end of March, nyk container line is now 96.4% an increase of almost 3% in four months. Several members of our senior management have recently met with our shipping line customers around the world. Based on these discussions we believe that the demand we are seeing will continue through at least the third quarter.
Lease rental income grew to $123.6 million a 7.2% increased compared to the year-ago quarter and 2.5% increase compared to the first quarter of 2014 due primarily to growth in the size of our owned fleet. Adjusted net income was $40.2 million for the quarter.
Our year-to-date nyk container line CapEx is much better than we expect at beginning of the second quarter. We have invested more than $658 million in containers for delivery during 2014, including nyk container line $598 million to acquire more than $314,000 TEU during this year. This 2014 CapEx include $65 million invested in purchase leaseback transactions and $44 million to purchase 38,000 TEU of previously nyk container line manage containers. nyk container line We now 77% of our fleet a new record.
Notwithstanding the strong increasing demand, rental rates remain under pressure. For the same reasons we have mentioned in the past such as easy access to financing by all lessors, low new container prices and low interest rates. The turnaround on container investments has declined as a result although our margins our new investments have not suffered to the full extent of the decline in rental rates, nyk container line because of our ability to reduce our funding costs and due to timely purchasing of new containers.
Nonetheless, we have not pursued all of the transactions we have been offered and have not won all of the transactions we have pursued. nyk container line This has been especially true with refrigerated containers where our new container CapEx is below budget and at a run rate below 2013, due to our unwillingness to match lower than expected returns.
In addition to pursuing only those deals we find attrac
Aug. 7, 2014 5:16 PM ET | About: Textainer Group Holdings Limited (TGH) by: SA Transcripts
Welcome to the Textainer Group Holdings Second Quarter 2014 Earnings Call. My name is Joe and I'll be your operator for today's nyk container line call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that this conference is being recorded.
Thank you Joe. And welcome to our 2014 second quarter earnings conference call. Joining me on this morning's call are Phil Brewer, nyk container line TGH s President and Chief Executive Officer. At the end of our prepared remarks, Robert Pedersen, TEM President and Chief Executive Officer will join us for the Q&A.
Before I turn the call over to Phil, I'd like to point out that this conference call contains forward-looking statements in accordance with U.S. securities laws. These statements involve nyk container line risks and uncertainties are only predictions and may differ materially from the actual future events or results.
Finally, the company views, estimates, plans and outlook as described within this call may change subsequent to this discussion. The company is under no obligation to modify or update any or all statements that are made.
Please see the company's Annual Report on Form 20-F for the year ended December 31, 2013, filed with the Securities and Exchange Commission on March 19, 2014, and going forward nyk container line any subsequent quarterly filings on Form 6-K for additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements.
I would also like to point out that during the call, we will discuss non-GAAP financial measures. As such measures are not prepared in accordance with generally accepted accounting principles, a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP measure will be provided either on this conference call or can be found in today's earnings press release.
Good morning and welcome to Textainer s second quarter 2014 earnings conference call. I'm sure many of you have noticed that we released second quarter financial results yesterday instead of this morning. Trencor our 48% shareholder issued its quarterly earnings statement in South Africa yesterday earlier than expected. Their release incorporated references to our yet to be reported earnings.
As a precaution, Textainer issued its earnings press release earlier than normal after becoming nyk container line aware of the disclosure and discussing the matter with a New York Stock Exchange. We are pleased with our second quarter nyk container line results and the strong increase in container demand we saw during the quarter. Our average weekly container booking increased almost 50% from the first quarter to the second quarter and this strong demand has continued nyk container line through to-date.
Our depot container inventory has decline by 42%, since its high point in March. We ve not seen such a rapid pick up and container demand since 2010. Our utilization, which bottomed at 93.6% at the end of March, nyk container line is now 96.4% an increase of almost 3% in four months. Several members of our senior management have recently met with our shipping line customers around the world. Based on these discussions we believe that the demand we are seeing will continue through at least the third quarter.
Lease rental income grew to $123.6 million a 7.2% increased compared to the year-ago quarter and 2.5% increase compared to the first quarter of 2014 due primarily to growth in the size of our owned fleet. Adjusted net income was $40.2 million for the quarter.
Our year-to-date nyk container line CapEx is much better than we expect at beginning of the second quarter. We have invested more than $658 million in containers for delivery during 2014, including nyk container line $598 million to acquire more than $314,000 TEU during this year. This 2014 CapEx include $65 million invested in purchase leaseback transactions and $44 million to purchase 38,000 TEU of previously nyk container line manage containers. nyk container line We now 77% of our fleet a new record.
Notwithstanding the strong increasing demand, rental rates remain under pressure. For the same reasons we have mentioned in the past such as easy access to financing by all lessors, low new container prices and low interest rates. The turnaround on container investments has declined as a result although our margins our new investments have not suffered to the full extent of the decline in rental rates, nyk container line because of our ability to reduce our funding costs and due to timely purchasing of new containers.
Nonetheless, we have not pursued all of the transactions we have been offered and have not won all of the transactions we have pursued. nyk container line This has been especially true with refrigerated containers where our new container CapEx is below budget and at a run rate below 2013, due to our unwillingness to match lower than expected returns.
In addition to pursuing only those deals we find attrac
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