Textainer Q2 Results Beat Street Expectation, Declares Dividend

  • Textainer Group Holdings Limited TGH reported second-quarter lease rental income growth of ~8.4% year-over-year to $203.23 million, beating the consensus of $202.8 million.
  • Adjusted EPS improved to $1.63 from $1.48 in 2Q21, beating the consensus of $1.42.
  • The second quarter's average and ending utilization rates were 99.6% and 99.5%, respectively.
  • Net gain on sale of owned fleet containers for the quarter increased by $7.3 million from Q1, primarily due to higher sales volumes and favorable prices supported by positive resale market demand.
  • Adjusted EBITDA was $191.09 million (+7.1% Y/Y), and the margin contracted by 118 bps to 94%.
  • Textainer repurchased 1.41 million shares at an average price of $31.81 per share during the quarter.
  • Dividend: Textainer declared a $0.25 per common share cash dividend, payable on September 15, 2022, to holders of record as of September 2, 2022.
  • Textainer generated operating cash year-to-date of $384.23 million, compared to $274 million a year ago.
  • The company added $230 million of new containers in Q2, for a total of $727 million through the first half of 2022, primarily assigned to long-term finance leases.
  • "As we look out to the coming months, we are well-positioned to navigate short- and medium-term market fluctuations as our contracted revenue and profits are well protected due to our long-term fixed-rate lease contracts and fixed-rate debt and hedging policy. We see a continuation of current congestion trends, with likely additional disruptions in the world of shipping," commented CEO Olivier Ghesquiere.
  • Price Action: TGH shares are trading lower by 4.46% at $32.35 on the last check Tuesday.
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Posted In: EarningsNewsDividendsSmall CapBriefs
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