Textainer Group Holdings Limited Reports Fourth-Quarter and Full-Year 2021 Results and Declares Dividend

Rhea-AI Summary

Textainer Group Holdings Limited (TGH) reported strong financial results for Q4 and the full year ending December 31, 2021. Q4 lease rental income reached $198.2 million, with adjusted net income of $73.2 million or $1.46 per diluted share. The full year showed a 25% increase in lease rental income to $750.7 million and adjusted EBITDA rose 47% to $698 million. Textainer declared a quarterly common dividend of $0.25, payable on March 15, 2022. The company continued its share repurchase program, acquiring 741,163 shares in Q4. Average fleet utilization stood at 99.7%.

Positive

• Lease rental income increased 25% to $750.7 million for 2021.
• Adjusted net income rose 226% to $284 million, or $5.62 per diluted share for the full year.
• Adjusted EBITDA for the full year increased by 47% to $698 million.
• Declared a $0.25 per common share dividend, payable on March 15, 2022.
• Average fleet utilization at 99.7%, demonstrating operational efficiency.

Negative

• Direct container expenses increased $31.8 million from 2020.
• General and administrative expenses rose $4.6 million due to improved performance-related costs.
• Interest expenses up $4.0 million from 2020 due to higher debt balance.

HAMILTON, Bermuda, Feb. 10, 2022 /PRNewswire/ -- Textainer Group Holdings Limited (NYSE: TGH; JSE: TXT) ("Textainer", "the Company", "we" and "our"), one of the world's largest lessors of intermodal containers, today reported financial results for the fourth-quarter and full-year ended December 31, 2021.

 

Key Financial Information (in thousands except for per share and TEU amounts) and Business Highlights:
		QTD												Full-Year
		Q4 2021				Q3 2021				Q4 2020				2021				2020
Lease rental income		$	198,222			$	195,830			$	161,491			$	750,730			$	600,873
Gain on sale of owned fleet containers, net		$	16,007			$	20,028			$	7,820			$	67,229			$	27,230
Income from operations		$	113,986			$	114,037			$	71,816			$	430,131			$	221,599
Net income attributable to common shareholders		$	72,885			$	64,729			$	44,260			$	273,459			$	72,822
Net income attributable to common shareholders per diluted common share		$	1.45			$	1.28			$	0.87			$	5.41			$	1.36
Adjusted net income (1)		$	73,229			$	76,502			$	41,147			$	284,087			$	87,277
Adjusted net income per diluted common share (1)		$	1.46			$	1.52			$	0.81			$	5.62			$	1.63
Adjusted EBITDA (1)		$	182,150			$	184,240			$	136,834			$	697,948			$	476,210
Average fleet utilization (2)			99.7	%			99.8	%			98.5	%			99.8	%			96.6	%
Total fleet size at end of period (TEU) (3)			4,322,367				4,264,946				3,774,053				4,322,367				3,774,053
Owned percentage of total fleet at end of period			92.8	%			92.6	%			88.0	%			92.8	%			88.0	%

(1)	Refer to the "Use of Non-GAAP Financial Information" set forth below.
(2)	Utilization is computed by dividing total units on lease in CEUs (cost equivalent unit) by the total units in our fleet in CEUs, excluding CEUs that have been designated as held for sale and units manufactured for us but not yet delivered to a lessee. CEU is a unit of measurement based on the approximate cost of a container relative to the cost of a standard 20-foot dry container. These factors may differ from CEU ratios used by others in the industry.
(3)	TEU refers to a twenty-foot equivalent unit, which is a unit of measurement used in the container shipping industry to compare shipping containers of various lengths to a standard 20-foot container, thus a 20-foot container is one TEU and a 40-foot container is two TEU.

 

• Net income of $273.5 million for the full year, or $5.41 per diluted common share and $72.9 million for the fourth quarter of 2021, or $1.45 per diluted common share;
• Adjusted net income of $284.1 million for the full year, or $5.62 per diluted common share, as compared to $87.3 million, or $1.63 per diluted common share in the prior year. Adjusted net income of $73.2 million for the fourth quarter of 2021, or $1.46 per diluted common share, as compared to $76.5 million, or $1.52 per diluted common share in the third quarter of 2021;
• Adjusted EBITDA of $697.9 million for the full year, as compared to $476.2 million in the prior year. Adjusted EBITDA of $182.2 million for the fourth quarter of 2021, as compared to $184.2 million in the third quarter of 2021;
• Average and ending utilization rate for the fourth quarter of 99.7%;
• Invested $251 million in containers delivered during the fourth quarter, for a total $2.0 billion delivered through the full year, virtually all of which are currently on lease with tenors in excess of 12 years;
• Repurchased 741,163 shares and 2,426,725 shares of common stock at an average price of $35.60 per share and $29.70 per share during the fourth quarter and full year of 2021, respectively. As of the end of the year, the remaining authority under the share repurchase program totaled $51.1 million;
• Textainer's board of directors approved and declared a quarterly preferred cash dividend on its 7.00% Series A and its 6.25% Series B cumulative redeemable perpetual preference shares, payable on March 15, 2022, to holders of record as of March 4, 2022; and
• Textainer's board of directors approved and declared a $0.25 per common share cash dividend in the fourth quarter of 2021, payable on March 15, 2022 to holders of record as of March 4, 2022.

"We are very pleased to report another quarter of strong performance, which provided a fantastic finish to a tremendous year. For the full year 2021, lease rental income increased 25% to $751 million, driven by organic fleet growth in a strong demand environment. Adjusted EBITDA increased by 47% to $698 million, reflecting our ongoing profitability focus, as well as a favorable lease and resale environment. Adjusted net income increased 226% to $284 million, or $5.62 per diluted share, and represents an ROE of almost 21% for the year.

For the fourth quarter of 2021, we achieved lease rental income of $198 million, adjusted EBITDA of $182 million, and adjusted net income of $73 million or $1.46 per diluted common share. We expect to continue achieving favorable results over the next several years, as we benefit from stability and reduced cyclicality risk provided by the long tenors of our fixed-rate leases and fixed-rate debt. We are very well positioned through the attractive and flexible terms, pricing and reliable sourcing of our debt financing platform, methodically enhanced and optimized over the course of the last few years," stated Olivier Ghesquiere, President and Chief Executive Officer.

"We deployed $251 million in capex during the fourth quarter for a total of approximately $2 billion for the year, bringing our fleet to over 4.3 million TEU. Although we continue to see opportunities for growth at attractive yields in the new year, we are starting to see more normalized levels of container capex following a record year. As trade volume remains elevated, shipping lines have continued to grow their capacity while also positioning additional containers in locations with surplus demand. The impact from Covid also continues to affect the overall market, prolonging the current supply-chain disruptions which create additional demand for containers."

"Lease terms remain attractive, with favorable rates and lease tenors continuing to exceed 12 years on average for new containers. It is important to emphasize that with all future capex opportunities, we remain focused on yields and profitability and will only invest when our targets can be achieved on the basis of mostly confirmed lease opportunities. We also continue to successfully extend expiring leases into life-cycle-leases, with maturities extending through the remaining useful life of the containers."

"In summary, 2021 was a tremendous year for Textainer. We achieved outstanding performance across all our key operating metrics, with the company now considerably stronger and better protected against cyclicality than in prior years. I'm very proud of the strong execution across the organization, which has secured our profitability and cash flow for many years to come. As we look out at 2022 and beyond, we are strategically well positioned in the market, with extremely competitive metrics across the company. Our strong cash flows and financial stability will enable us to create significant shareholder value, through further strategic capex as well as continued capital returns to shareholders through our reinstated dividend program and ongoing share repurchase program," concluded Ghesquiere.

Fourth-Quarter and Full-Year Results

Lease rental income for the year increased $149.9 million from 2020 due to an increase in fleet size, average rental rate and utilization. Lease rental income for the quarter increased $2.4 million from the third quarter of 2021 due to an increase in fleet size and average rental rate.

Trading container margin for the year increased $7.2 million from 2020, due to an increase in the average per unit margin, partially offset by a decrease in the number of containers sold. Trading container margin for the quarter decreased $0.9 million from the third quarter of 2021, due to a decrease in the average per unit margin, partially offset by an increase in the number of containers sold.

Gain on sale of owned fleet containers, net for the year increased $40.0 million from 2020, due to an increase in the average gain per container sold, partially offset by a reduction in the number of containers sold. Gain on sale of owned fleet containers, net for the quarter decreased $4.0 million from the third quarter of 2021, due to a decrease in the number of containers sold, partially offset by an increase in the average gain per container sold.

Direct container expense – owned fleet for the year decreased $31.8 million from 2020, which includes lower storage costs and maintenance and handling expense due to higher utilization.

Distribution to managed fleet container investors for the year decreased $7.0 million from 2020, in line with a decrease in the managed fleet size.

Depreciation expense for the year increased $19.9 million from 2020, due to an increase in fleet size, partially offset by a decrease due to improved mark to market value adjustments on certain containers held for sale. 

General and administrative expense for the year increased $4.6 million from 2020, primarily because of an increase in incentive compensation and employee benefit costs resulting from improved company performance and IT system enhancement costs.

Interest expense for the year increased $4.0 million from 2020, and increased $1.8 million compared to the third quarter of 2021, due to a higher average debt balance from funding increased container investment, partially offset by a decrease in our average effective interest rate.

Debt termination expense for 2021 amounted to $15.2 million, which included a $10.6 million loan termination payment and a $4.2 million write-off of unamortized deferred debt issuance costs, resulting from the early redemption of certain higher-priced fixed-rate asset backed notes with proceeds from our lower-priced debt facilities. Debt termination expense for 2020 amounted to $8.8 million, resulting from the early redemption of certain higher-price fixed-rate asset backed notes with proceeds from our lower-priced debt facilities.

Realized loss on financial instruments, net for the year decreased $6.7 million from 2020, primarily due to the termination of all interest rate swaps not designated under hedge accounting during the second and third quarter of 2021. As of September 30, 2021, all of our outstanding interest rate swaps were designated under hedge accounting and will no longer generate realized or unrealized gain (loss) on financial instruments.

Conference Call and Webcast

A conference call to discuss the financial results for the fourth quarter and full year of 2021 will be held at 5:00 pm Eastern Time on Thursday, February 10, 2022. The dial-in number for the conference call is 1-855-327-6837 (U.S. & Canada) and 1-631-891-4304 (International). The call and archived replay may also be accessed via webcast on Textainer's Investor Relations website at http://investor.textainer.com.

About Textainer Group Holdings Limited

Textainer has operated since 1979 and is one of the world's largest lessors of intermodal containers with approximately 4.3 million TEU in our owned and managed fleet. We lease containers to approximately 200 customers, including all of the world's leading international shipping lines, and other lessees. Our fleet consists of standard dry freight, refrigerated intermodal containers, and dry freight specials. We also lease tank containers through our relationship with Trifleet Leasing and are a supplier of containers to the U.S. Military. Textainer is one of the largest and most reliable suppliers of new and used containers. In addition to selling older containers from our fleet, we buy older containers from our shipping line customers for trading and resale. We sold an average of approximately 130,000 containers per year for the last five years to more than 1,000 customers making us one of the largest sellers of used containers. Textainer operates via a network of 14 offices and approximately 400 independent depots worldwide. Textainer has a primary listing on the New York Stock Exchange (NYSE: TGH) and a secondary listing on the Johannesburg Stock Exchange (JSE: TXT). Visit www.textainer.com for additional information about Textainer.

Important Cautionary Information Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of U.S. securities laws. Forward-looking statements include statements that are not statements of historical facts and may relate to, but are not limited to, expectations or estimates of future operating results or financial performance, capital expenditures, introduction of new products, regulatory compliance, plans for growth and future operations, as well as assumptions relating to the foregoing. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "intend," "potential," "continue" or the negative of these terms or other similar terminology. Readers are cautioned that these forward-looking statements involve risks and uncertainties, are only predictions and may differ materially from actual future events or results. These risks and uncertainties include, without limitation, the following items that could materially and negatively impact our business, results of operations, cash flows, financial condition and future prospects: (i) We expect to continue achieving favorable results over the next several years; (ii) We continue to see opportunities for growth at attractive yields in the new year; (iii) We are strategically well positioned in the market, with extremely competitive metrics across the company. Our strong cash flows and financial stability will enable us to create significant shareholder value, through further strategic capex as well as continued capital returns to shareholders through our reinstated dividend program and ongoing share repurchase program; and other risks and uncertainties, including those set forth in Textainer's filings with the Securities and Exchange Commission. For a discussion of some of these risks and uncertainties, see Item 3 "Key Information— Risk Factors" in Textainer's Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 18, 2021.

Textainer's views, estimates, plans and outlook as described within this document may change subsequent to the release of this press release. Textainer is under no obligation to modify or update any or all of the statements it has made herein despite any subsequent changes Textainer may make in its views, estimates, plans or outlook for the future.

Textainer Group Holdings Limited
Investor Relations
Phone: +1 (415) 658-8333
ir@textainer.com

 

TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
(All currency expressed in United States dollars in thousands, except per share amounts)
	Three Months Ended December 31,									Years Ended December 31,
	2021					2020				2021				2020
Revenues:
Lease rental income - owned fleet		$	185,167			$	146,118			$	694,693			$	538,425
Lease rental income - managed fleet			13,055				15,373				56,037				62,448
Lease rental income			198,222				161,491				750,730				600,873
Management fees - non-leasing			614				1,547				3,360				5,271
Trading container sales proceeds			9,397				7,274				32,045				31,941
Cost of trading containers sold			(7,673)				(5,896)				(21,285)				(28,409)
Trading container margin			1,724				1,378				10,760				3,532
Gain on sale of owned fleet containers, net			16,007				7,820				67,229				27,230
Operating expenses:
Direct container expense - owned fleet			5,590				10,315				23,384				55,222
Distribution expense to managed fleet container investors			11,590				14,092				50,360				57,311
Depreciation expense			72,915				65,609				281,575				261,665
Amortization expense			250				806				2,540				2,572
General and administrative expense			12,199				11,008				46,462				41,880
Bad debt recovery, net			(60)				(1,342)				(1,285)				(1,668)
Container lessee default expense (recovery), net			97				(68)				(1,088)				(1,675)
Total operating expenses			102,581				100,420				401,948				415,307
Income from operations			113,986				71,816				430,131				221,599
Other (expense) income:
Interest expense			(34,888)				(27,973)				(127,269)				(123,230)
Debt termination expense			(131)				—				(15,209)				(8,750)
Interest income			40				52				123				531
Realized loss on financial instruments, net			(118)				(3,395)				(5,634)				(12,295)
Unrealized (loss) gain on financial instruments, net			(272)				3,390				4,409				(6,044)
Other, net			120				685				(490)				1,488
Net other expense			(35,249)				(27,241)				(144,070)				(148,300)
Income before income taxes			78,737				44,575				286,061				73,299
Income tax (expense) benefit			(883)				463				(1,773)				374
Net income			77,854				45,038				284,288				73,673
Less: Dividends on preferred shares			4,969				—				10,829				—
Less: Net income attributable to the noncontrolling interest			—				778				—				851
Net income attributable to common shareholders		$	72,885			$	44,260			$	273,459			$	72,822
Net income attributable to common shareholders per share:
Basic		$	1.48			$	0.88			$	5.51			$	1.37
Diluted		$	1.45			$	0.87			$	5.41			$	1.36
Weighted average shares outstanding (in thousands):
Basic			49,093				50,517				49,624				53,271
Diluted			50,097				51,110				50,576				53,481

 

TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(All currency expressed in United States dollars in thousands)
		December 31, 2021				December 31, 2020
Assets
Current assets:
Cash and cash equivalents		$	206,210			$	131,018
Accounts receivable, net of allowance of $1,290 and $2,663, respectively			125,746				108,578
Net investment in finance leases, net of allowance of $100 and $169, respectively			113,048				78,459
Container leaseback financing receivable, net of allowance of $38 and $98, respectively			30,317				27,076
Trading containers			12,740				9,375
Containers held for sale			7,007				15,629
Prepaid expenses and other current assets			14,184				13,713
Due from affiliates, net			2,376				1,509
Total current assets			511,628				385,357
Restricted cash			76,362				74,147
Marketable securities			2,866				—
Containers, net of accumulated depreciation of $1,851,664 and $1,619,591, respectively			4,731,878				4,125,052
Net investment in finance leases, net of allowance of $643 and $1,164 respectively			1,693,042				801,501
Container leaseback financing receivable, net of allowance of $75 and $326, respectively			323,830				336,792
Derivative instruments			12,278				47
Deferred taxes			1,073				1,153
Other assets			14,487				17,327
Total assets		$	7,367,444			$	5,741,376
Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses		$	22,111			$	24,385
Container contracts payable			140,968				231,647
Other liabilities			4,895				2,288
Due to container investors, net			17,985				18,697
Debt, net of unamortized costs of $8,624 and $8,043, respectively			380,207				408,365
Total current liabilities			566,166				685,382
Debt, net of unamortized costs of $32,019 and $18,639, respectively			4,960,313				3,706,979
Derivative instruments			2,139				29,235
Income tax payable			10,747				10,047
Deferred taxes			7,589				6,491
Other liabilities			39,236				16,524
Total liabilities			5,586,190				4,454,658
Equity:
Textainer Group Holdings Limited shareholders' equity:
Preferred shares, $0.01 par value, $25,000 liquidation preference per share. Authorized 10,000,000 shares
7.00% Series A fixed-to-floating rate cumulative redeemable perpetual preferred shares, 6,000 shares issued and outstanding (equivalent to 6,000,000 depositary shares at $25.00 liquidation preference per depositary share)			150,000				—
6.25% Series B fixed rate cumulative redeemable perpetual preferred shares, 6,000 shares issued and outstanding (equivalent to 6,000,000 depositary shares at $25.00 liquidation preference per depositary share)			150,000				—
Common shares, $0.01 par value. Authorized 140,000,000 shares; 59,503,710 shares issued and 48,831,855 shares outstanding at 2021; 58,740,919 shares issued and 50,495,789 shares outstanding at 2020			595				587
Treasury shares, at cost, 10,671,855 and 8,245,130 shares, respectively			(158,459)				(86,239)
Additional paid-in capital			428,945				416,609
Accumulated other comprehensive gain (loss)			9,750				(9,744)
Retained earnings			1,200,423				938,395
Total Textainer Group Holdings Limited shareholders' equity			1,781,254				1,259,608
Noncontrolling interest			—				27,110
Total equity			1,781,254				1,286,718
Total liabilities and equity		$	7,367,444			$	5,741,376

 

TEXTAINER GROUP HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
(All currency expressed in United States dollars in thousands)
		Years Ended December 31,
		2021				2020
Cash flows from operating activities:
Net income		$	284,288			$	73,673
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense			281,575				261,665
Bad debt recovery, net			(1,285)				(1,668)
Container recovery from lessee default, net			(4,868)				(260)
Unrealized (gain) loss on financial instruments, net			(4,409)				6,044
Amortization of unamortized debt issuance costs and accretion of bond discounts			9,845				8,112
Debt termination expense			15,209				8,750
Amortization of intangible assets			2,540				2,572
Gain on sale of owned fleet containers, net			(67,229)				(27,230)
Share-based compensation expense			6,699				4,723
Changes in operating assets and liabilities			89,418				59,874
Total adjustments			327,495				322,582
Net cash provided by operating activities			611,783				396,255
Cash flows from investing activities:
Purchase of containers and fixed assets			(2,083,819)				(746,145)
Payment on container leaseback financing receivable			(18,705)				(116,263)
Proceeds from sale of containers and fixed assets			142,276				151,021
Receipt of principal payments on container leaseback financing receivable			30,119				21,485
Net cash used in investing activities			(1,930,129)				(689,902)
Cash flows from financing activities:
Proceeds from debt			4,863,756				2,114,260
Payments on debt			(3,635,663)				(1,799,870)
Payment of debt issuance costs			(27,895)				(13,637)
Proceeds from container leaseback financing liability, net			16,305				—
Principal repayments on container leaseback financing liability, net			(3,314)				(12,825)
Issuance of preferred shares, net of underwriting discount			290,550				—
Purchase of treasury shares			(72,220)				(68,493)
Issuance of common shares upon exercise of share options			9,043				1,295
Dividends paid on common shares			(12,285)				—
Dividends paid on preferred shares			(9,975)				—
Purchase of noncontrolling interest			(21,500)				—
Other			(970)				—
Net cash provided by financing activities			1,395,832				220,730
Effect of exchange rate changes			(79)				177
Net increase (decrease) in cash, cash equivalents and restricted cash			77,407				(72,740)
Cash, cash equivalents and restricted cash, beginning of the year			205,165				277,905
Cash, cash equivalents and restricted cash, end of the year		$	282,572			$	205,165
Supplemental disclosures of cash flow information:
Cash paid for interest expense and realized loss and settlement of derivative instruments		$	145,711			$	126,958
Income taxes paid		$	1,567			$	34
Receipt of payments on finance leases, net of income earned		$	104,770			$	44,569
Supplemental disclosures of noncash operating activities:
Receipt of marketable securities from a lessee		$	5,789			$	-
Right-of-use asset for leased properties		$	272			$	574
Supplemental disclosures of noncash investing activities:
(Decrease) Increase in accrued container purchases		$	(90,679)			$	222,253
Containers placed in finance leases		$	1,043,323			$	635,004

Use of Non-GAAP Financial Information

To supplement Textainer's consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include adjusted net income, adjusted net income per diluted common share, adjusted EBITDA, headline earnings and headline earnings per basic and diluted common share.

Management believes that adjusted net income and adjusted net income per diluted common share are useful in evaluating Textainer's operating performance. Adjusted net income is defined as net income attributable to common shareholders excluding debt termination expense, unrealized (loss) gain on derivative instruments and marketable securities and the related impacts on income taxes and non-controlling interest. Management considers adjusted EBITDA a widely used industry measure and useful in evaluating Textainer's ability to fund growth and service long-term debt and other fixed obligations. Headline earnings is reported as a requirement of Textainer's listing on the JSE. Headline earnings and headline earnings per basic and diluted common shares are calculated from net income which has been determined based on GAAP.

Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in the tables below for the three and twelve months ended December 31, 2021 and 2020 and for the three months ended September 30, 2021.

Non-GAAP measures are not financial measures calculated in accordance with GAAP and are presented solely as supplemental disclosures. Non-GAAP measures have limitations as analytical tools, and should not be relied upon in isolation, or as a substitute to net income, income from operations, cash flows from operating activities, or any other performance measures derived in accordance with GAAP. Some of these limitations are:

• They do not reflect cash expenditures, or future requirements, for capital expenditures or contractual commitments;
• They do not reflect changes in, or cash requirements for, working capital needs;
• Adjusted EBITDA does not reflect interest expense or cash requirements necessary to service interest or principal payments on debt;
• Although depreciation expense and container impairment are a non-cash charge, the assets being depreciated may be replaced in the future, and neither adjusted EBITDA, adjusted net income or adjusted net income per diluted common share reflects any cash requirements for such replacements;
• They are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows; and
• Other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures.

 

		Three Months Ended,												Years Ended,
		December 31, 2021				September 30, 2021				December 31, 2020				December 31, 2021				December 31, 2020
		(Dollars in thousands)												(Dollars in thousands)
		(Unaudited)												(Unaudited)
Reconciliation of adjusted net income:
Net income attributable to common shareholders		$	72,885			$	64,729			$	44,260			$	273,459			$	72,822
Adjustments:
Debt termination expense			131				11,866				—				15,209				8,750
Unrealized loss (gain) on financial instruments, net			272				(83)				(3,390)				(4,409)				6,044
Loss on settlement of pre-existing management agreement			—				116				—				116				—
Impact of reconciling items on income tax			(59)				(126)				37				(288)				(142)
Impact of reconciling items attributable to the noncontrolling interest			—				—				240				—				(197)
Adjusted net income		$	73,229			$	76,502			$	41,147			$	284,087			$	87,277
Adjusted net income per diluted common share		$	1.46			$	1.52			$	0.81			$	5.62			$	1.63
		Three Months Ended,												Years Ended,
		December 31, 2021				September 30, 2021				December 31, 2020				December 31, 2021				December 31, 2020
		(Dollars in thousands)												(Dollars in thousands)
		(Unaudited)												(Unaudited)
Reconciliation of adjusted EBITDA:
Net income attributable to common shareholders		$	72,885			$	64,729			$	44,260			$	273,459			$	72,822
Adjustments:
Interest income			(40)				(20)				(52)				(123)				(531)
Interest expense			34,888				33,128				27,973				127,269				123,230
Debt termination expense			131				11,866				—				15,209				8,750
Realized loss on derivative instruments, net			—				4				3,395				5,408				12,295
Unrealized loss (gain) on financial instruments, net			272				(83)				(3,390)				(4,409)				6,044
Loss on settlement of pre-existing management agreement			—				116				—				116				—
Income tax expense (benefit)			883				(59)				(463)				1,773				(374)
Net income attributable to the noncontrolling interest			—				—				778				—				851
Depreciation expense			72,915				72,839				65,609				281,575				261,665
Container (recovery) write-off from lessee default, net			(34)				918				(122)				(4,869)				(1,647)
Amortization expense			250				802				806				2,540				2,572
Impact of reconciling items attributable to the noncontrolling interest			—				—				(1,960)				—				(9,467)
Adjusted EBITDA		$	182,150			$	184,240			$	136,834			$	697,948			$	476,210
		Three Months Ended,												Years Ended,
		December 31, 2021				September 30, 2021				December 31, 2020				December 31, 2021				December 31, 2020
		(Dollars in thousands)												(Dollars in thousands)
		(Unaudited)												(Unaudited)
Reconciliation of headline earnings:
Net income attributable to common shareholders		$	72,885			$	64,729			$	44,260			$	273,459			$	72,822
Adjustments:
Container (recovery) impairment			(140)				1,183				590				(5,254)				9,447
Loss on settlement of pre-existing management agreement			—				116				—				116				—
Impact of reconciling items on income tax			1				(35)				(4)				25				(90)
Impact of reconciling items attributable to the noncontrolling interest			—				—				(5)				—				(248)
Headline earnings		$	72,746			$	65,993			$	44,841			$	268,346			$	81,931
Headline earnings per basic common share		$	1.48			$	1.34			$	0.89			$	5.41			$	1.54
Headline earnings per diluted common share		$	1.45			$	1.31			$	0.88			$	5.31			$	1.53

 

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SOURCE Textainer Group Holdings Limited

FAQ

What are the key financial results for Textainer Group Holdings Limited (TGH) in Q4 2021?

In Q4 2021, Textainer reported lease rental income of $198.2 million, and adjusted net income of $73.2 million, or $1.46 per diluted share.

When will the dividend be paid for Textainer Group Holdings Limited (TGH)?

Textainer declared a $0.25 per common share dividend payable on March 15, 2022, to shareholders of record as of March 4, 2022.

How much did Textainer Group Holdings Limited (TGH) invest in containers in 2021?

Textainer invested approximately $2 billion in containers throughout 2021.

What was the average fleet utilization rate for Textainer Group Holdings Limited (TGH) in Q4 2021?

The average fleet utilization for Q4 2021 was 99.7%.

What is the outlook for Textainer Group Holdings Limited (TGH) in 2022?

Textainer expects to continue achieving favorable results, benefiting from stability and reduced cyclicality risk from long-term fixed-rate leases.