TRAC Intermodal Reports First Quarter 2014 Earnings

PRINCETON, N.J., May 8, 2014 /PRNewswire/ -- TRAC Intermodal LLC, the largest provider of intermodal chassis in North America, will present its first quarter 2014 earnings and financial results on Friday, May 9, 2014 at 9:00 a.m. Eastern Daylight Savings Time. Dial in information for the conference call can be accessed as follows:

https://cossprereg.btci.com/prereg/key.process?key=P7BH9D63R

Presentation materials to be used by management on the conference call are available on the "Investors" section of the Company's website.  The Company's financial statements are attached as an exhibit to this press release.  An on-demand audio replay of the conference call will also be available on the Company's website within 24 hours of the call. This earnings announcement, as well as additional detailed financial information, is contained in the "Investors" 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 the world's largest provider of marine and domestic chassis, measured by total assets, operating throughout the United States, Canada and Mexico. TRAC Intermodal provides long term chassis leasing and short term rentals through extensive chassis pool programs and pool/fleet management through the utilization of its proprietary PoolStat® system. TRAC Intermodal's fleet consists of approximately 309,000 chassis. TRAC Intermodal has a broad operating footprint with 563 marine, 152 domestic and 61 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 to be filed on Form 10-K, Current Reports on Form 8-K and our Registration Statement on Form S-4. 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

Media Requests:
David Hamm
dhamm@tracintermodal.com
+1 609.986.0260

TRAC Intermodal LLC
211 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,


2014


2013

Assets




Cash and cash equivalents        

$                 6,115


$             11,843

Accounts receivable, net of allowance of $14,728 and

   $12,475, respectively

115,076


113,138

Net investment in direct finance leases  

21,668


25,026

Leasing equipment, net of accumulated depreciation

   of $376,227 and $365,429, respectively

1,387,038


1,394,088

Goodwill          

251,907


251,907

Other assets     

46,483


45,908

Total assets      

$          1,828,287


$        1,841,910





Liabilities and member's interest




Liabilities:




Accounts payable      

$               14,146


$             12,092

Accrued expenses and other liabilities 

32,740


42,692

Deferred income taxes          

104,713


99,331

Debt and capital lease obligations:




Due within one year           

37,743


34,029

Due after one year

1,107,728


1,130,108

Total debt and capital lease obligations   

1,145,471


1,164,137

Total liabilities  

1,297,070


1,318,252





Commitments and contingencies






Member's interest:




Member's interest     

567,116


562,006

Accumulated other comprehensive loss          

(35,899)


(38,348)

Total member's interest

531,217


523,658

Total liabilities and member's interest     

$          1,828,287


$        1,841,910

 

TRAC Intermodal LLC and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

 (Dollars in Thousands)



Three Month Ended

March 31,


2014


2013

Revenues:




Equipment leasing revenue     

$         131,369


$       107,547

Finance revenue        

595


1,010

Other revenue           

7,687


9,342

Total revenues          

139,651


117,899





Expenses:




Direct operating expenses      

66,833


61,003

Selling, general and administrative expenses    

18,569


13,514

Depreciation expense

18,504


17,274

Provision for doubtful accounts          

3,457


2,156

Impairment of leasing equipment        

1,126


2,133

Loss on modification and extinguishment of debt 

   and capital lease obligations

22


647

Interest expense        

22,216


22,722

Interest income         

(24)


(2)

Other income, net      

(382)


(798)

Total expenses          

130,321


118,649





Income (loss) before provision (benefit) for income taxes

9,330


(750)

Provision (benefit) for income taxes       

3,856


(315)

Net income (loss)

$          5,474


$        (435)





 

TRAC Intermodal LLC and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

 (Dollars in Thousands)



Three  Months Ended

March 31,


2014


2013

Cash flows from operating activities




Net income (loss)   

$             5,474


$               (435)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:




Depreciation and amortization          

18,560


17,339

Provision for doubtful accounts        

3,457


2,156

Amortization of deferred financing fees            

1,574


1,519

Loss on modification and extinguishment of debt and capital lease obligations

22


647

Derivative loss reclassified into earnings           

4,606


5,217

Ineffective portion of cash flow hedges            

(21)


Impairment of leasing equipment      

1,126


2,133

Share-based compensation

218


281

Deferred income taxes       

3,157


(468)

Other, net          

(384)


(73)

Changes in assets and liabilities:




Accounts receivable      

(5,456)


(12,388)

Other assets  

(2,132)


(1,867)

Accounts payable         

2,054


2,776

Accrued expenses and other liabilities          

(9,304)


(12,422)

Net cash provided by operating activities             

22,951


4,415





Cash flows from investing activities




Proceeds from sale of leasing equipment               

6,042


835

Collections on net investment in direct finance leases, net of interest earned       

1,187


1,460

Purchase of leasing equipment               

(15,777)


(33,478)

Purchase of fixed assets         

(631)


(783)

Net cash used in investing activities      

(9,179)


(31,966)





Cash flows from financing activities




Proceeds from long-term debt

22,000


56,000

Repayments of long-term debt              

(40,744)


(31,908)

Cash paid for debt issuance fees            


(749)

Repurchase of indirect parent shares from employees          

(585)


(470)

Net cash (used in) provided by financing activities               

(19,329)


22,873





Effect of changes in exchange rates on cash and cash equivalents         

(171)


(131)

Net decrease in cash and cash equivalents             

(5,728)


(4,809)

Cash and cash equivalents, beginning of year        

11,843


26,556

Cash and cash equivalents, end of period              

$             6,115


$            21,747

Supplemental disclosures of cash flow information




Cash paid for interest            

$           24,075


$            24,778

Cash paid for taxes, net         

$                814


$                 255





 

SOURCE TRAC Intermodal LLC



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