Textainer Group Holdings (TGH) Tops Q1 EPS by 13c

Textainer Group Holdings (NYSE: TGH) reported Q1 EPS of $0.17, $0.13 better than the analyst estimate of $0.04. Revenue for the quarter came in at $145.48 million versus the consensus estimate of $149.8 million.

• Net loss of $4.4 million for the first quarter, which includes an unrealized loss on derivatives of $14.9 million;
• Adjusted net income of $9.7 million for the first quarter, or $0.17 per diluted common share, as compared to $11.0 million, or $0.19 per diluted common share in the fourth quarter of 2019;
• Adjusted EBITDA of $117.1 million for the first quarter, as compared to $113.2 million in the fourth quarter of 2019;
• Utilization averaged 96.2% for the first quarter, as compared to 96.4% for the fourth quarter of 2019;
• Minimal container investments during the first quarter; and
• Repurchased approximately 1,947,000 shares of common stock at an average price of $7.84 per share during the first quarter under the share repurchase program authorized on August 29, 2019. As announced on March 30, 2020, Textainer's Board of Directors authorized an increase to the share repurchase program for an additional $25 million of the Company's outstanding shares.

"Our most important priority is to maintain business continuity while ensuring the health and safety of our employees, and we reacted swiftly and efficiently to transition into working remotely. I am proud of how our team has risen to the challenge with their dedication and professionalism, focused on providing exceptional service to our customers in the face of the significant disruptions caused by the COVID-19 pandemic," stated Olivier Ghesquiere, President and Chief Executive Officer of Textainer Group Holdings Limited.

Ghesquiere continued, "Our performance in the first quarter was in line with our expectations. Average utilization remained strong at 96.2%, we delivered lease rental income of $145.5 million, adjusted net income of $9.7 million and adjusted EBITDA of $117.1 million. Despite the global Covid-19 pandemic, container trade remains essential for the global economy. The current challenging economic environment also means that we are strongly focused on our cash collections and monitoring of customer credit. We are particularly pleased with our liquidity position as we reduced our debt outstanding by $135 million in the quarter while protecting our cash reserves and ability to invest upon the eventual return of container demand."

Ghesquiere concluded, "The market remains challenged by the extraordinary effects and implications of the broad-based response to the current pandemic, and there is a high level of uncertainty to our outlook for the rest of the year. However, Textainer is well-positioned to navigate through the current crisis and participate in an eventual market recovery with a strong balance sheet, healthy liquidity, an optimized capital structure as well as demonstrated expense control and efficiency. We remain focused on using our strong and stable cash flows to improve our financial performance and deliver shareholder value creation."

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

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