Textainer Group Holdings (TGH) Misses Q3 EPS by 10c, Revenues Miss

Textainer Group Holdings (NYSE: TGH) reported Q3 EPS of $0.22, $0.10 worse than the analyst estimate of $0.32. Revenue for the quarter came in at $154.67 million versus the consensus estimate of $156.8 million.

• Lease rental income of $154.7 million for the third quarter, as compared to $155.1 million in the second quarter of 2019;
• Adjusted net income of $13.0 million for the third quarter, or $0.22 per diluted common share, as compared to $9.0 million, or $0.16 per diluted common share in the second quarter of 2019;
• Adjusted EBITDA of $118.3 million for the third quarter, as compared to $114.7 million in the second quarter of 2019;
• Utilization averaged 97.3% for the third quarter, as compared to 97.9% for the second quarter of 2019;
• Container investments of approximately $67 million during the third quarter, for a total of $710 million delivered through the first nine months of the year; and
• Repurchased approximately 240,000 shares of common stock during the third quarter under the share repurchase program authorized on August 29, 2019.

"Textainer's performance was resilient in a generally lackluster market environment, delivering a stable lease rental income of $154.7 million and Adjusted EBITDA of $118.3 million. Adjusted net income was $13.0 million or $0.22 per share, comparing well against $9.0 million or $0.16 per share in the second quarter," stated Olivier Ghesquiere, President and Chief Executive Officer of Textainer Group Holdings Limited.

Ghesquiere continued, "Market activity remained slow in the third quarter, as the traditional peak season did not materialize given the ongoing trade tensions and slower economic growth. As such, we have limited our incremental container investment to $67 million delivered during the third quarter and remain focused on a disciplined profit improvement strategy targeting specific yield and return thresholds."

Ghesquiere concluded, "While the overall market activity remains muted and is reflected in our operating results, we have taken a number of actions this year to enhance shareholder value. We have improved our capital structure through our previously announced new debt offering and facility refinancing, which leaves us strongly positioned to participate in any future rebound in market demand. We repurchased approximately 240,000 shares of our common stock during the third quarter under our $25 million share repurchase program, which commenced in September 2019. We are investing in technology and personnel while implementing cost cutting initiatives that lower operating expenses. Finally, also in September, we announced plans to dual list our shares on the Johannesburg Stock Exchange to enable Trencor to distribute its Textainer shares to its shareholders, which we believe will lead to a broader and deeper shareholder base over the longer term."

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

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