Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - TRAC Intermodal LLC | v439447_8k.htm |
Exhibit 99.1
TRAC Intermodal Reports First Quarter 2016 Earnings
PRINCETON, N.J., May 10, 2016 /PRNewswire/ -- TRAC Intermodal LLC, the largest provider of intermodal chassis in North America, reports its first quarter 2016 earnings and financial results.
The Company's financial statements are attached as an exhibit to this press release. This earnings announcement, as well as additional detailed financial information and presentation materials, is contained in the "Investor Relations" section of the Company's website at www.tracintermodal.com and on Form 8-K furnished to the Securities and Exchange Commission.
About TRAC Intermodal
TRAC Intermodal is North America's leading intermodal equipment provider and chassis pool manager, measured by total assets. TRAC Intermodal provides short term rentals through an extensive chassis pool network, long term chassis leasing and pool/fleet management through the utilization of its proprietary PoolStat® information management system. TRAC Intermodal's active fleet consists of approximately 276,000 chassis. TRAC Intermodal has a broad operating footprint with approximately 600 marine, 160 domestic and 60 depot locations across North America and is the leader in providing chassis solutions to the intermodal industry.
Forward Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are statements other than statements of historical fact and are often characterized by the use of words such as "believes," "expects," "estimates," "projects," "may," "will," "intends," "plans" or "anticipates," or by discussions of strategy, plans or intentions. All forward-looking statements in this press release are made based on management's current expectations and estimates, which involve risks, uncertainties and other factors that could cause results to differ materially from those expressed in forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, the following: the volume of world trade due to economic, political, or other factors; increased operating costs; increased regulatory costs; defaults by our customers; and, the demand for chassis. More information about potential factors that could affect our business and financial results is included in our filings with the SEC, including in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information.
FOR MORE INFORMATION:
Investor Relations:
Blake Morris
bmorris@tracintermodal.com
+1 609.986.0270
TRAC Intermodal LLC
750 College Rd East
Princeton, NJ 08540
www.tracintermodal.com
Exhibit - Financial Statements
TRAC Intermodal LLC and Subsidiaries | |||
Consolidated Balance Sheets | |||
(Unaudited) | |||
(Dollars in Thousands) | |||
|
|
|
|
|
|
| March 31, |
| December 31, |
|
| 2016 |
| 2015 |
Assets |
|
|
|
Cash and cash equivalents | $ 1,429 |
| $ 3,161 |
Accounts receivable, net of allowance of $8,742 and $12,454, respectively | 108,187 |
| 110,662 |
Net investment in direct finance leases | 12,757 |
| 12,797 |
Leasing equipment, net of accumulated depreciation of $462,049 and $452,962, respectively | 1,432,568 |
| 1,435,978 |
Goodwill | 256,815 |
| 251,907 |
Other assets | 40,601 |
| 32,991 |
Total assets | $ 1,852,357 |
| $ 1,847,496 |
|
|
|
|
|
Liabilities and member's interest |
|
|
|
Liabilities |
|
|
|
Accounts payable | $ 15,068 |
| $ 13,593 |
Accrued expenses and other liabilities | 47,410 |
| 75,340 |
Deferred income taxes, net | 132,752 |
| 127,580 |
Debt and capital lease obligations: |
|
|
|
Due within one year | 45,150 |
| 41,396 |
Due after one year | 1,104,167 |
| 1,039,283 |
Total debt and capital lease obligations | 1,149,317 |
| 1,080,679 |
Less unamortized debt issuance costs | 17,393 |
| 18,350 |
Total debt and capital lease obligations less debt issuance costs | 1,131,924 |
| 1,062,329 |
Total liabilities | 1,327,154 |
| 1,278,842 |
|
|
|
|
|
Commitments and contingencies | — |
| — |
|
|
|
|
|
Member's interest |
|
|
|
Member's interest | 542,320 |
| 586,757 |
Accumulated other comprehensive loss | (17,117) |
| (18,103) |
Total member's interest | 525,203 |
| 568,654 |
Total liabilities and member's interest | $ 1,852,357 |
| $ 1,847,496 |
TRAC Intermodal LLC and Subsidiaries | ||||
Consolidated Statements of Operations | ||||
(Unaudited) | ||||
(Dollars in Thousands) | ||||
|
|
| |||
|
| Three Months Ended
| |||
|
| 2016 |
| 2015 | |
Revenues |
|
|
| |
Equipment leasing revenue | $ 160,763 |
| $ 160,689 | |
Finance revenue | 344 |
| 406 | |
Other revenue | 7,235 |
| 7,660 | |
Total revenues | 168,342 |
| 168,755 | |
|
|
|
|
| |
Expenses |
|
|
| |
Direct operating expenses | 94,211 |
| 84,951 | |
Selling, general and administrative expenses | 26,414 |
| 21,276 | |
Depreciation expense | 18,846 |
| 17,901 | |
(Recovery) provision for doubtful accounts | (965) |
| 2,072 | |
Impairment of leasing equipment | 1,999 |
| 1,433 | |
Loss on modification and extinguishment of debt and capital lease obligations | — |
| 39 | |
Interest expense | 16,830 |
| 22,097 | |
Interest income | (125) |
| (1) | |
Other income, net | (460) |
| (554) | |
Total expenses | 156,750 |
| 149,214 | |
|
|
|
|
| |
Income before provision for income taxes | 11,592 |
| 19,541 | |
Provision for income taxes | 4,634 |
| 7,380 | |
Net income | $ 6,958 |
| $ 12,161 | |
|
|
|
|
|
|
TRAC Intermodal LLC and Subsidiaries | |||
Consolidated Statements of Cash Flows | |||
(Unaudited) | |||
(Dollars in Thousands) | |||
|
|
|
| |
|
| Three Months Ended
| ||
|
| 2016 |
| 2015 |
Cash flows from operating activities |
|
|
|
Net income | $ 6,958 |
| $ 12,161 |
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
Depreciation and amortization | 18,863 |
| 17,940 |
(Recovery) provision for doubtful accounts | (965) |
| 2,072 |
Amortization of deferred financing fees | 984 |
| 1,826 |
Loss on modification and extinguishment of debt and capital lease obligations | — |
| 39 |
Derivative loss reclassified into earnings | 4,401 |
| 5,416 |
Ineffective portion of cash flow hedges | 352 |
| (20) |
Impairment of leasing equipment | 1,999 |
| 1,433 |
Share-based compensation | 56 |
| 247 |
Deferred income taxes, net | 4,390 |
| 8,467 |
Grant income recognized | (147) |
| — |
Proceeds from sale of tax credits | 810 |
| — |
Other, net | (225) |
| (554) |
Changes in assets and liabilities: |
|
|
|
Accounts receivable | 5,333 |
| 1,416 |
Other assets | (3,384) |
| (2,627) |
Accounts payable | (713) |
| 294 |
Accrued expenses and other liabilities | (14,377) |
| (21,109) |
Net cash provided by operating activities | 24,335 |
| 27,001 |
|
|
|
|
|
Cash flows from investing activities |
|
|
|
Proceeds from sale of leasing equipment | 1,256 |
| 6,500 |
Collections on net investment in direct finance leases, net of interest earned | 758 |
| 1,225 |
Business acquisition | (4,706) |
| — |
Investment in direct finance leases | (370) |
| — |
Purchase of leasing equipment | (36,080) |
| (12,158) |
Purchase of fixed assets | (3,965) |
| (3,299) |
Net cash used in investing activities | (43,107) |
| (7,732) |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
Proceeds from long-term debt | 109,500 |
| 54,000 |
Repayments of long-term debt | (41,062) |
| (69,064) |
Cash paid for debt issuance fees | (27) |
| — |
Repurchase of indirect parent shares from employees | (306) |
| — |
Dividend received on indirect parent shares | 40 |
| — |
Dividend paid | (51,185) |
| — |
Net cash provided by (used in) financing activities | 16,960 |
| (15,064) |
|
|
|
|
|
Effect of changes in exchange rates on cash and cash equivalents | 80 |
| (353) |
Net (decrease) increase in cash and cash equivalents | (1,732) |
| 3,852 |
Cash and cash equivalents, beginning of year | 3,161 |
| 4,256 |
Cash and cash equivalents, end of period | $ 1,429 |
| $ 8,108 |
Supplemental disclosures of cash flow information |
|
|
|
Cash paid for interest | $ 15,152 |
| $ 22,891 |
Cash paid (refunded) for taxes, net | $ 145 |
| $ (819) |