Textainer reports record first quarter results
Textainer Group Holdings has reported its first-quarter 2021 results with the company’s president and CEO stating that the business had benefitted from “favourable market conditions underpinned by high trade volumes”.
Olivier Ghesquiere said: “We are very pleased with our record first quarter results and revenue growth which confirms our strong turnaround. When adjusted for the fewer number of billing days, our lease rental income was 7 percent higher than in the prior quarter and 16 percent higher when compared to the first quarter of last year, a solid improvement achieved with unprecedented growth in profitable long-term leases of new containers.
“We continue to benefit from favourable market conditions underpinned by high trade volumes, resulting in high container demand and prices, and attractive lease yields. We are investing heavily to support this strong market and have taken delivery of containers totalling $580 million during the first quarter and ordered additional containers totalling $700 million for delivery through July 2021. Substantially all these containers are already on, or committed to, attractive long-term leases with the average lease tenure of all contracts negotiated so far this year in excess of 12 years.”
The firm reported record adjusted EBITDA, which increased $16.3 million, or 11.9 percent, to $153.1 million, as well as record adjusted net income, which increased $18.0 million, or 43.8 percent, to $59.2 million, as compared to the fourth quarter of 2020.
Ghesquiere added: “From July 2020 through July 2021 we will have invested a total of $2.2 billion in new containers that will provide strong cash flow and attractive revenue for many years to come and help facilitate continued profitability improvement.
“This is a significant investment volume, representing 45 percent of our container asset value as of the beginning of this period. At the same time, we continue to support our historically high utilisation rate by successfully renewing expiring leases under long-term arrangements that guarantee most containers will remain on lease until reaching their sales age, further securing our stable future cash flow.”
For more information visit www.textainer.com
17th May 2021