Textainer reports Q2 adjusted EPS (2c), consensus (1c)
Reports Q2 revenue $119.2M, consensus $123.4M. "We continue to see strong improvement in container leasing market conditions with a quarter-to-quarter increase in lease revenue, decrease in direct container expense, reduction in container impairments and increase in gains on container sales. New container prices were around $2,150 per CEU during the quarter while used containers prices continued to increase. Our utilization continues to improve as we lease out new-build and depot inventory," stated Philip Brewer, president and CEO, "Notwithstanding these very positive developments, the impact of writing off several one-time items related to our refinancing activity and non-cash GAAP tax expense, resulted in our reporting GAAP net loss in the second quarter. However, we project that we will return to profitability during the second half of this year."Due to the need to recover Hanjin containers and financing limitations, our investment in new containers was extremely limited during the first quarter. During the second quarter we raised $920M to pay down existing term debt and bank facilities, enabling us to free up liquidity and acquire new containers. We have invested approximately $275M year-to-date under very attractive lease terms with initial yields above 12% and our low leverage gives us the flexibility to continue investing. These investments combined with on-going lease-outs of depot and ex-Hanjin containers will continue to improve our earnings going forward."