TRAC Intermodal Reports Second Quarter 2015 Earnings

Aug 10, 2015, 16:30 ET from TRAC Intermodal LLC

PRINCETON, N.J., Aug. 10, 2015 /PRNewswire/ -- TRAC Intermodal LLC, the largest provider of intermodal chassis in North America, reports its second quarter 2015 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 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 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 278,000 chassis. TRAC Intermodal has a broad operating footprint with 602 marine, 166 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 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)






June 30,


December 31,


2015


2014

Assets




Cash and cash equivalents        

$               3,717


$             4,256

Accounts receivable, net of allowance of $18,330 and $19,030, respectively

131,581


135,076

Net investment in direct finance leases  

14,473


16,215

Leasing equipment, net of accumulated depreciation of $426,187 and $400,408, respectively

1,400,515


1,436,909

Goodwill          

251,907


251,907

Other assets     

47,846


41,954

Total assets   

$        1,850,039


$      1,886,317





Liabilities and member's interest




Liabilities




Accounts payable      

$             18,382


$           14,781

Accrued expenses and other liabilities 

61,474


74,449

Deferred income taxes, net    

118,243


102,467

Debt and capital lease obligations:




Due within one year           

28,194


30,546

Due after one year

1,068,183


1,133,676

Total debt and capital lease obligations   

1,096,377


1,164,222

Total liabilities  

1,294,476


1,355,919





Commitments and contingencies






Member's interest




Member's interest     

579,236


559,015

Accumulated other comprehensive loss          

(23,673)


(28,617)

Total member's interest

555,563


530,398

Total liabilities and member's interest         

$        1,850,039


$      1,886,317

 


TRAC Intermodal LLC and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

(Dollars in Thousands)






Three Months Ended


Six Months Ended


June 30,


June 30,


2015


2014


2015


2014

Revenues








Equipment leasing revenue     

$   169,438


$   139,715


$   330,127


$   271,084

Finance revenue        

389


561


795


1,156

Other revenue           

7,786


12,151


15,446


19,838

Total revenues          

177,613


152,427


346,368


292,078









Expenses








Direct operating expenses      

99,969


82,983


184,920


149,816

Selling, general and administrative expenses    

23,012


22,544


44,288


41,113

Depreciation expense

17,914


16,773


35,815


35,277

Provision for doubtful accounts          

99


3,660


2,171


7,117

Impairment of leasing equipment        

2,569


1,191


4,002


2,317

Early retirement of leasing equipment 


37,766



37,766

Loss on modification and extinguishment of debt and capital lease obligations


80


39


102

Interest expense        

21,506


21,375


43,603


43,591

Interest income         


(23)


(1)


(47)

Other income, net      

(221)


(135)


(775)


(517)

Total expenses          

164,848


186,214


314,062


316,535









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

12,765


(33,787)


32,306


(24,457)

Provision (benefit) for income taxes       

5,054


(12,042)


12,434


(8,186)

Net income (loss)

$       7,711


$   (21,745)


$     19,872


$   (16,271)

 

TRAC Intermodal LLC and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

(Dollars in Thousands)




Six Months Ended
June 30,


2015


2014

Cash flows from operating activities




Net income (loss)   

$       19,872


$      (16,271)

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




Depreciation and amortization          

35,874


35,407

Provision for doubtful accounts        

2,171


7,117

Amortization of deferred financing fees            

3,636


3,296

Loss on modification and extinguishment of debt and capital lease obligations

39


102

Derivative loss reclassified into earnings           

10,526


8,995

Ineffective portion of cash flow hedges            

(42)


(41)

Impairment of leasing equipment      

4,002


2,317

Early retirement of leasing equipment


37,766

Share-based compensation

349


436

Deferred income taxes, net

13,340


(9,113)

Other, net          

(783)


(521)

Changes in assets and liabilities:




Accounts receivable      

1,259


(21,430)

Other assets  

(2,079)


(2,030)

Accounts payable         

3,601


1,770

Accrued expenses and other liabilities          

(6,401)


13,651

Net cash provided by operating activities         

85,364


61,451





Cash flows from investing activities




Proceeds from sale of leasing equipment               

7,288


6,694

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

2,010


2,359

Purchase of leasing equipment               

(16,728)


(95,888)

Purchase of fixed assets         

(10,183)


(1,023)

Net cash used in investing activities 

(17,613)


(87,858)





Cash flows from financing activities




Proceeds from long-term debt

66,750


92,000

Repayments of long-term debt              

(134,694)


(61,192)

Cash paid for debt issuance fees            


(1,973)

Repurchase of indirect parent shares from employees          


(585)

Net cash (used in) provided by financing activities         

(67,944)


28,250





Effect of changes in exchange rates on cash and cash equivalents         

(346)


(99)

Net (decrease) increase in cash and cash equivalents             

(539)


1,744

Cash and cash equivalents, beginning of year        

4,256


11,843

Cash and cash equivalents, end of period        

$         3,717


$         13,587





Supplemental disclosures of cash flow information




Cash paid for interest            

$       29,490


$         31,224

Cash (refunded) paid for taxes, net        

$          (809)


$              937





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SOURCE TRAC Intermodal LLC



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