Textainer Group Holdings (JSE:TXT) News - Textainer Group Holdings Limited reports third-quarter 2021 results and reinstates quarterly dividend TEXTAINER GROUP HOLDINGS LIMITED Incorporated in Bermuda Company number: EC18896 NYSE share code: TGH JSE share code: TXT ISIN: BMG8766E1093 LEI: 529900OHEYRATAFMIT89 (“Textainer”, “the Company”, “we” and “our””) Textainer Group Holdings Limited Reports Third-Quarter 2021 Results and Reinstates Quarterly Dividend 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 unaudited financial results for the third-quarter ended September 30, 2021. Key Financial Information (in thousands of U.S. dollars, except for per share and TEU amounts) and Business Highlights: Q TD Q 3 2021 Q 2 2021 Q 3 2020 Lease rental income $ 195,830 $ 187,434 $ 149,130 Gain on sale of owned fleet containers, net $ 20,028 $ 18,836 $ 7,976 Income from operations $ 114,037 $ 110,007 $ 54,109 Net income attributable to common shareholders $ 64,729 $ 73,795 $ 16,952 Net income attributable to common shareholders per diluted common share $ 1.28 $ 1.45 $ 0.32 (1) Adjusted net income $ 76,502 $ 75,204 $ 21,634 (1) Adjusted net income per diluted common share $ 1.52 $ 1.48 $ 0.41 Adjusted EBITDA (1) $ 184,240 $ 178,448 $ 118,960 (1) Headline earnings $ 65,993 $ 74,047 $ 19,913 (1) Headline earnings per diluted common share $ 1.31 $ 1.46 $ 0.38 Net asset value per diluted common share attributable to the equity holders of the Company $ 35.16 $ 30.77 $ 23.99 (2) Average fleet utilization 99.8% 99.8% 96.0% Total fleet size at end of period (TEU) (3) 4,264,946 4,101,575 3,599,889 Owned percentage of total fleet at end of period 92.6% 90.6% 87.1% (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 $64.7 million for the third quarter, or $1.28 per diluted common share, as compared to $73.8 million, or $1.45 per diluted common share in the second quarter of 2021; - Adjusted net income of $76.5 million for the third quarter, or $1.52 per diluted common share, as compared to $75.2 million, or $1.48 per diluted common share in the second quarter of 2021; - Adjusted EBITDA of $184.2 million for the third quarter, as compared to $178.4 million in the second quarter of 2021; - Headline earnings of $66.0 million for the third quarter, or $1.31 per diluted common share as compared to $74.0 million or $1.46 per diluted common share in the second quarter of 2021; - Average and ending utilization rate for the third quarter of 99.8%; - Invested $622 million in containers delivered during the third quarter, for a total $1.7 billion delivered through the first nine months of the year, virtually all of which are currently on lease with tenures in excess of 12 years; - As previously announced, issued $600 million of fixed-rate asset backed notes with an 11-year tenor on August 11, 2021. Additionally, issued a $209 million fixed-rate term loan with a 7-year tenor on October 18, 2021. The resulting proceeds from both issuances were used to pay down other debt facilities and create additional borrowing capacity for future container investments. The successful closing of these financings in turn further lowered our average effective interest rate to 2.60% as of the end of the quarter; - As previously announced, repaid in full $208 million of term loans on August 20, 2021, which carried a blended interest rate of 4.30% and had an original maturity in February 2025. In accordance with the early redemption provisions of the term loans, Textainer made a loan termination payment of $10.6 million and incurred a write-off of unamortized debt issuance costs of $1.3 million; - As previously announced, completed an underwritten public offering of 6,000,000 depositary shares, each representing a 1/1,000th interest in a share of its 6.25% Series B cumulative redeemable perpetual preference shares, for an aggregate public offering price of $150 million; - Repurchased 523,662 shares of common stock at an average price of $31.63 per share during the third quarter. Textainer's board of directors authorized a $50 million increase to the share repurchase program of the Company's outstanding shares in September 2021, bringing its total authorization level to $200 million since inception. As of the end of the third quarter, the remaining authority under the share repurchase program totaled $77.5 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 December 15, 2021, to holders of record as of December 3, 2021; and - Textainer’s board of directors approved the reinstatement of the common dividend program and declared a $0.25 per common share cash dividend in the third quarter of 2021, payable on December 15, 2021 to holders of record as of December 3, 2021. Use of Non-GAAP Measures U.S. securities laws require that when we publish any non-GAAP measures, we disclosure the reason for using these non-GAAP measures and provide reconciliations to the directly comparable GAAP measures in our full announcement. The presentation of Adjusted net income, Adjusted net income per diluted common share, Adjusted EBITDA, Headline earnings and Headline earnings per diluted common share are non-GAAP measures. Conference Call A conference call to discuss the financial results for the third quarter 2021 will be held at 5:00 pm Eastern Time on Thursday, November 4, 2021. The dial-in number for the conference call is 1-855-327- 6838 (U.S. & Canada) and 1-604-235-2082 (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 250 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 150,000 containers per year for the last five years to more than 1,500 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. Textainer Group Holdings Limited Investor Relations Phone: +1 (415) 658-8333 ir@textainer.com Short-Form Announcement This short-form announcement is the responsibility of Textainer’s Board of Directors and is a summary of the information in the detailed financial results announcement. This short-form announcement does not contain complete or full announcement details. Any investment decision by investors and/or shareholders should be based on consideration of the full announcement. The short-form announcement has not been audited or reviewed by Textainer's external auditors. The full announcement may be downloaded from https://senspdf.jse.co.za/documents/2021/jse/isse/TXTE/ResultsQ3.pdf or from Textainer's Investor Relations website at http://investor.textainer.com, and is also available from the registered office of the Company (Century House 16 Par-la-Ville Road, Hamilton, Bermuda, HM 08) and at the office of the sponsor, at no charge, during normal business hours. 4 November 2021 Sponsor: Investec Bank Limited Date: 05-11-2021 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. 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