Textainer Group Holdings (TGH) Tops Q1 EPS by 11c, Revenues Miss

Textainer Group Holdings (NYSE: TGH) reported Q1 EPS of $0.39, $0.11 better than the analyst estimate of $0.28. Revenue for the quarter came in at $155.53 million versus the consensus estimate of $156.9 million.

• Lease rental income of $155.5 million for the first quarter, as compared to $157.1 million in the fourth quarter of 2018;
• Adjusted net income of $22.4 million for the first quarter, or $0.39 per diluted common share, as compared to $11.9 million, or $0.21 per diluted common share in the fourth quarter of 2018;
• Adjusted EBITDA of $118.1 million for the first quarter, an increase of $3.1 million (or 2.7%) from the fourth quarter of 2018;
• Issued $350 million fixed rate asset backed notes on April 24, 2019, increasing our ratio of fixed rate or hedged debt to 84% of total debt outstanding;
• Utilization averaged 98.3% for the first quarter, as compared to 98.6% for the fourth quarter of 2018; and
• Container investments of approximately $200 million delivered during the first quarter.

"We are pleased with our performance in the first quarter, which was in line with our expectations. Adjusted EBITDA increased $3.1 million, or 2.7%, to $118.1 million, while adjusted net income increased $10.5 million, or 88.3%, to $22.4 million in the first quarter as compared to the fourth quarter of 2018. These improvements were achieved despite the slow market activity that we experienced towards the end of 2018 and which continued through the first quarter, resulting in a slightly lower lease rental income of $155.5 million," stated Olivier Ghesquiere, President and Chief Executive Officer of Textainer Group Holdings Limited.

Ghesquiere continued, "Despite a quiet start to the year and uncertainties about the world economy, trade and shipping volumes have remained strong following the robust expansion experienced in 2018. We remain optimistic that we will deliver growth and improved financial performance as we continue to implement our strategic initiatives and anticipate an acceleration in overall market activity in the second half of the year. The fundamentals of our business remain positive, evidenced by low turn-in activity, high utilization, a stable container resale environment, reasonable inventory levels, and recently increasing new container prices. In addition, with the successful completion of our recent $350 million asset backed financing, we remain well positioned and ready to capture profitable market growth opportunities as they arise."

For earnings history and earnings-related data on Textainer Group Holdings (TGH) click here.

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