TRAC Intermodal Reports Third Quarter 2013 Earnings

PRINCETON, N.J., Nov. 7, 2013 /PRNewswire/ -- TRAC Intermodal LLC, the largest provider of intermodal chassis in North America, will present its third quarter earnings and financial results on Friday, November 8, 2013 at 9:00 a.m. Eastern Standard Time. Dial in information for the conference call can be accessed as follows:

https://cossprereg.btci.com/prereg/key.process?key=PQC7BRPG7

Presentation materials to be used by management on the conference call are available on 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 546 marine, 154 domestic and 64 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 Quarterly Report to be filed on Form 10-Q, 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)






September 30,


December 31,


2013


2012

Assets




Cash and cash equivalents        

$                 8,933


$             26,556

Accounts receivable, net of allowance of $12,077 and $7,325, respectively

124,292


80,620

Net investment in direct finance leases  

26,915


40,729

Leasing equipment, net of accumulated depreciation of $347,984 and $309,010, respectively

1,409,056


1,325,383

Fair value of derivative instruments        

2,796


Goodwill          

251,907


251,907

Other assets     

44,497


43,268

Total assets      

$          1,868,396


$        1,768,463





Liabilities and member's interest




Liabilities:




Accounts payable      

$               15,238


$             10,270

Accrued expenses and other liabilities 

45,794


37,320

Deferred income taxes          

77,879


73,569

Debt and capital lease obligations:




Due within one year           

29,048


25,884

Due after one year

1,158,813


1,082,513

Total debt and capital lease obligations   

1,187,861


1,108,397

Total liabilities  

1,326,772


1,229,556





Commitments and contingencies






Member's interest:




Member's interest     

583,003


590,883

Accumulated other comprehensive loss          

(41,379)


(51,976)

Total member's interest

541,624


538,907

Total liabilities and member's interest     

$          1,868,396


$        1,768,463

 

 

TRAC Intermodal LLC and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

(Dollars in Thousands)



Three Months Ended


Nine Months Ended


September 30,


September 30,

Revenues:

2013


2012


2013


2012

Equipment leasing revenue     

$       125,488


$       97,803


$    345,002


$     267,105

Finance revenue        

746


1,252


2,564


3,950

Other revenue           

8,010


10,729


31,609


27,743

Total revenues          

134,244


109,784


379,175


298,798









Expenses:








Direct operating expenses      

81,140


60,583


215,336


155,492

Selling, general and administrative expenses    

14,737


10,893


41,998


33,937

Depreciation expense

18,161


16,418


53,124


49,419

Provision for doubtful accounts          

3,727


260


8,434


2,073

Impairment of leasing equipment        

1,065


3,081


3,629


5,073

Loss on retirement of debt

6


6,294


901


6,443

Interest expense        

22,926


20,304


68,336


52,267

Interest income         

(15)


(88)


(286)


(109)

Other expense (income), net  

94


(89)


(1,896)


(640)

Total expenses          

141,841


117,656


389,576


303,955









Loss before benefit for income taxes     

(7,597)


(7,872)


(10,401)


(5,157)

Benefit for income taxes           

(1,273)


(3,201)


(2,409)


(2,047)

Net loss

$        (6,324)


$       (4,671)


$     (7,992)


$      (3,110)

 

 

TRAC Intermodal LLC and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

(Dollars in Thousands)



Nine  Months Ended
September 30,


2013


2012

Cash flows from operating activities




Net loss  

$          (7,992)


$            (3,110)

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




Depreciation and amortization          

53,302


49,749

Provision for doubtful accounts        

8,434


2,073

Amortization of deferred financing fees            

4,609


2,576

Loss on retirement of debt

901


6,443

Derivative loss reclassified into earnings           

15,180


5,367

Ineffective portion of cash flow hedges            

(60)


53

Payment to terminate derivative instruments   


(90,370)

Impairment of leasing equipment      

3,629


5,073

Share based compensation 

873


1,311

Deferred income taxes       

(2,336)


(2,666)

Other, net          

(1,172)


(271)

Changes in assets and liabilities:




Accounts receivable      

(52,106)


(20,531)

Other assets  

(700)


742

Accounts payable         

4,969


3,820

Accrued expenses and other liabilities          

4,296


3,734

Net cash provided by (used in) operating activities              

31,827


(36,007)





Cash flows from investing activities




Proceeds from sale of leasing equipment               

5,961


2,028

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

4,262


5,897

Purchase of leasing equipment               

(131,509)


(30,034)

Purchase of fixed assets         

(3,617)


(547)

Net cash used in investing activities      

(124,903)


(22,656)





Cash flows from financing activities




Proceeds from long-term debt

142,000


816,397

Repayments of long-term debt              

(63,506)


(732,576)

Cash paid for debt issuance fees            

(2,267)


(30,306)

Capital contribution from parent           


3,334

Investment in parent              


(3,354)

Repurchase of shares from employees  

(509)


(307)

Net cash provided by financing activities              

75,718


53,188





Effect of changes in exchange rates on cash and cash equivalents         

(265)


161

Net decrease in cash and cash equivalents             

(17,623)


(5,314)

Cash and cash equivalents, beginning of year        

26,556


29,005

Cash and cash equivalents, end of period              

$             8,933


$           23,691

Supplemental disclosures of cash flow information




Cash paid for interest            

$           57,784


$           45,737

Cash paid (refunded) for taxes, net        

$                315


$             (632)

SOURCE TRAC Intermodal



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