Seeking Alpha
May. 6, 2014 5:03 PM ET | About: Textainer Group Holdings Limited (TGH) by: SA Transcripts
Operator
Hello and welcome to the Textainer Group Holdings First Quarter 2014 Earnings Call. My name is Daniel and I'll be your operator for today's 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. I will now turn the call over to Executive Vice President and Chief Financial Officer, Hilliard Terry. Mr. Terry, you may begin.
Thank you Daniel. And welcome to our 2014 first quarter earnings call. Joining me on this morning's call are Phil Brewer, tracking delmas TGH President and Chief Executive Officer. At the end of our prepared remarks, tracking delmas 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 risks and uncertainties are only predictions and may differ materially from the actual future events or results.
Finally, the company tracking delmas views, estimates, plans and outlook as described within this call may change subsequent to this discussion. The company is under no obligation tracking delmas 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 any subsequent quarterly filings on Form 6-K for additional information tracking delmas 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 tracking delmas in accordance with generally accepted accounting principles, a reconciliation of the non-GAAP financial measure to the most closest directly tracking delmas comparable GAAP measure will be provided either on this conference call or can be found in today's earnings release.
Good morning and welcome to Textainer's first quarter 2014 earnings conference call. Our first quarter results marked a solid start for the year. The quarter started with unexpectedly strong lease out demand an improvement in lease terms prior to the start of Chinese New Year demand declined in February as expected, demand then picked up again in March and further accelerated in April which was not only better than February and March combined, but was our best bookings month in two to three years.
In fact January was perhaps the second best booking month during that same period. Lease rental income tracking delmas grew by 7% to $121 million compared to the year ago quarter due primarily for a larger owned fleet.
Adjusted net income was $59.1 million for the quarter. This result included a one-time $22.7 million discrete income tax benefit following the completion of an IRS examination. Excluding this one-time benefit, adjusted net income decreased 21% from the prior year quarter.
We began the quarter with utilization of 94%; our utilization tracking delmas is 94.7% currently. Much of this increase was due to the bookings made in January. As I already mentioned April was not only better than January, but was the strongest booking month we have seen for a long time. The bookings made in April should increase utilization by approximately 1% once the containers are lease out, which we expect to happen largely within tracking delmas the next few months.
Our depot inventory has declined for five over the last six weeks and is at its lowest level since last summer. On the other hand, rental rates remain tracking delmas under pressure for the same reasons we have discussed tracking delmas in the past, one of the primary ones being that all lessors, regardless of size or experience of this access of financing at very attractive terms.
Surprisingly the credit markets do not seem to differentiate between larger experience lessors and smaller less experience lessors, notwithstanding the fact that industry knowledge and international presence tracking delmas are critical to properly managing operating leases. tracking delmas
New container prices have fallen from around $2,300 earlier in the year to around $2,100 currently. Some container factories, primarily in Southern China are operating multiple shifts and are sold out through June. Factories at other locations however have quicker turnaround times. We estimate the current tracking delmas new build inventory at factories to be approximately 640,000 TEU, approximately three quarters of which is owned by recent companies and one quarter by shipping lines.
Used container prices continued to decline, they are down approximately 25% from the year ago quarter and 5% this quarter year-to-date which negatively affected gains on sales of our own containers, as well as our trading business.
We invested more than $284 million du
May. 6, 2014 5:03 PM ET | About: Textainer Group Holdings Limited (TGH) by: SA Transcripts
Operator
Hello and welcome to the Textainer Group Holdings First Quarter 2014 Earnings Call. My name is Daniel and I'll be your operator for today's 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. I will now turn the call over to Executive Vice President and Chief Financial Officer, Hilliard Terry. Mr. Terry, you may begin.
Thank you Daniel. And welcome to our 2014 first quarter earnings call. Joining me on this morning's call are Phil Brewer, tracking delmas TGH President and Chief Executive Officer. At the end of our prepared remarks, tracking delmas 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 risks and uncertainties are only predictions and may differ materially from the actual future events or results.
Finally, the company tracking delmas views, estimates, plans and outlook as described within this call may change subsequent to this discussion. The company is under no obligation tracking delmas 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 any subsequent quarterly filings on Form 6-K for additional information tracking delmas 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 tracking delmas in accordance with generally accepted accounting principles, a reconciliation of the non-GAAP financial measure to the most closest directly tracking delmas comparable GAAP measure will be provided either on this conference call or can be found in today's earnings release.
Good morning and welcome to Textainer's first quarter 2014 earnings conference call. Our first quarter results marked a solid start for the year. The quarter started with unexpectedly strong lease out demand an improvement in lease terms prior to the start of Chinese New Year demand declined in February as expected, demand then picked up again in March and further accelerated in April which was not only better than February and March combined, but was our best bookings month in two to three years.
In fact January was perhaps the second best booking month during that same period. Lease rental income tracking delmas grew by 7% to $121 million compared to the year ago quarter due primarily for a larger owned fleet.
Adjusted net income was $59.1 million for the quarter. This result included a one-time $22.7 million discrete income tax benefit following the completion of an IRS examination. Excluding this one-time benefit, adjusted net income decreased 21% from the prior year quarter.
We began the quarter with utilization of 94%; our utilization tracking delmas is 94.7% currently. Much of this increase was due to the bookings made in January. As I already mentioned April was not only better than January, but was the strongest booking month we have seen for a long time. The bookings made in April should increase utilization by approximately 1% once the containers are lease out, which we expect to happen largely within tracking delmas the next few months.
Our depot inventory has declined for five over the last six weeks and is at its lowest level since last summer. On the other hand, rental rates remain tracking delmas under pressure for the same reasons we have discussed tracking delmas in the past, one of the primary ones being that all lessors, regardless of size or experience of this access of financing at very attractive terms.
Surprisingly the credit markets do not seem to differentiate between larger experience lessors and smaller less experience lessors, notwithstanding the fact that industry knowledge and international presence tracking delmas are critical to properly managing operating leases. tracking delmas
New container prices have fallen from around $2,300 earlier in the year to around $2,100 currently. Some container factories, primarily in Southern China are operating multiple shifts and are sold out through June. Factories at other locations however have quicker turnaround times. We estimate the current tracking delmas new build inventory at factories to be approximately 640,000 TEU, approximately three quarters of which is owned by recent companies and one quarter by shipping lines.
Used container prices continued to decline, they are down approximately 25% from the year ago quarter and 5% this quarter year-to-date which negatively affected gains on sales of our own containers, as well as our trading business.
We invested more than $284 million du
No comments:
Post a Comment