TRAC Intermodal Reports Third Quarter 2015 Earnings

Nov 05, 2015, 16:28 ET from TRAC Intermodal LLC

PRINCETON, N.J., Nov. 5, 2015 /PRNewswire/ -- TRAC Intermodal LLC, the largest provider of intermodal chassis in North America, reports its third 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 591 marine, 159 domestic and 53 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)






September 30,


December 31,


2015


2014

Assets




Cash and cash equivalents        

$               2,299


$             4,256

Accounts receivable, net of allowance of $15,758 and $19,030, respectively

122,017


135,076

Net investment in direct finance leases  

13,689


16,215

Leasing equipment, net of accumulated depreciation of $439,983 and $400,408, respectively

1,410,132


1,436,909

Goodwill          

251,907


251,907

Other assets     

43,139


41,954

Total assets   

$          1,843,183


$        1,886,317





Liabilities and member's interest




Liabilities




Accounts payable      

$             14,644


$           14,781

Accrued expenses and other liabilities 

65,437


74,449

Deferred income taxes, net    

120,556


102,467

Debt and capital lease obligations:




Due within one year           

36,058


30,546

Due after one year

1,049,911


1,133,676

Total debt and capital lease obligations   

1,085,969


1,164,222

Total liabilities  

1,286,606


1,355,919





Commitments and contingencies






Member's interest




Member's interest     

578,115


559,015

Accumulated other comprehensive loss          

(21,538)


(28,617)

Total member's interest

556,577


530,398

Total liabilities and member's interest         

$        1,843,183


$      1,886,317

 

 


TRAC Intermodal LLC and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

 (Dollars in Thousands)










Three Months Ended


Nine Months Ended


September 30,


September 30,


2015


2014


2015


2014

Revenues








Equipment leasing revenue     

$   170,015


$   158,844


$   500,142


$   429,928

Finance revenue        

404


495


1,199


1,651

Other revenue           

6,780


7,758


22,226


27,596

Total revenues          

177,199


167,097


523,567


459,175









Expenses








Direct operating expenses      

98,679


94,385


283,599


244,201

Selling, general and administrative expenses    

23,741


21,293


68,029


62,406

Depreciation expense

18,017


18,942


53,832


54,219

Provision for doubtful accounts          

(28)


3,579


2,143


10,696

Impairment of leasing equipment        

1,693


932


5,695


3,249

Early retirement of leasing equipment 




37,766

Loss on modification and extinguishment of debt and capital lease obligations

16,173



16,212


102

Interest expense        

19,715


21,079


63,318


64,670

Interest income         


(5)


(1)


(52)

Other income, net      

(290)


(166)


(1,065)


(683)

Total expenses          

177,700


160,039


491,762


476,574









(Loss) income before provision (benefit) for income taxes

(501)


7,058


31,805


(17,399)

Provision (benefit) for income taxes       

737


896


13,171


(7,290)

Net (loss) income

$    (1,238)


$       6,162


$     18,634


$  (10,109)

 

 

TRAC Intermodal LLC and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

 (Dollars in Thousands)




Nine Months Ended
September 30,


2015


2014

Cash flows from operating activities




Net income (loss)   

$        18,634


$     (10,109)

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




Depreciation and amortization          

53,911


54,414

Provision for doubtful accounts        

2,143


10,696

Amortization of deferred financing fees            

5,315


5,014

Loss on modification and extinguishment of debt and capital lease obligations

16,212


102

Derivative loss reclassified into earnings           

15,507


13,068

Ineffective portion of cash flow hedges            

166


(63)

Impairment of leasing equipment      

5,695


3,249

Early retirement of leasing equipment


37,766

Share-based compensation

466


654

Deferred income taxes, net

14,306


(8,072)

Other, net          

(991)


(686)

Changes in assets and liabilities:




Accounts receivable      

10,405


(33,791)

Other assets  

(1,537)


(2,254)

Accounts payable         

(137)


2,152

Accrued expenses and other liabilities          

(13,043)


11,916

Net cash provided by operating activities         

127,052


84,056





Cash flows from investing activities




Proceeds from sale of leasing equipment               

9,530


7,594

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

2,771


3,586

Proceeds from sale of other assets         

2,300


Purchase of leasing equipment               

(38,386)


(114,041)

Purchase of fixed assets

(12,799)


(2,163)

Other investing activity         

(244)


Net cash used in investing activities 

(36,828)


(105,024)





Cash flows from financing activities




Proceeds from long-term debt

256,250


119,000

Repayments of long-term debt              

(334,622)


(101,529)

Premium paid for redemption of Notes 

(12,375)


Cash paid for debt issuance fees            

(748)


(2,069)

Repurchase of indirect parent shares from employees          


(630)

Net cash (used in) provided by financing activities         

(91,495)


14,772





Effect of changes in exchange rates on cash and cash equivalents         

(686)


(316)

Net decrease in cash and cash equivalents             

(1,957)


(6,512)

Cash and cash equivalents, beginning of year        

4,256


11,843

Cash and cash equivalents, end of period        

$          2,299


$          5,331

Supplemental disclosures of cash flow information




Cash paid for interest            

$        52,513


$        54,665

Cash (refunded) paid for taxes, net        

$          (801)


$             945









 

SOURCE TRAC Intermodal LLC



RELATED LINKS

http://www.tracintermodal.com