TRAC Intermodal Reports 2015 Earnings

Mar 03, 2016, 16:01 ET from TRAC Intermodal

PRINCETON, N.J., March 3, 2016 /PRNewswire/ -- TRAC Intermodal LLC, the largest provider of intermodal chassis in North America, reports its 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 North America's leading intermodal equipment provider and chassis pool manager, measured by total assets. 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 approximately 600 marine, 160 domestic and 60 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

At December 31, 2015 and 2014

 (Dollars in Thousands)





December 31


2015

2014

Assets



Cash and cash equivalents        

$               3,161

$             4,256

Accounts receivable, net of allowances of $12,454 and $19,030, respectively

110,662

135,076

Net investment in direct finance leases  

12,797

16,215

Leasing equipment, net of accumulated depreciation of $452,962 and $400,408, respectively

1,435,978

1,436,909

Goodwill          

251,907

251,907

Other assets     

32,991

20,399

Total assets      

$        1,847,496

$      1,864,762




Liabilities and member's interest



Accounts payable      

$             13,593

$           14,781

Accrued expenses and other liabilities 

75,340

74,449

Deferred income taxes, net    

127,580

102,467

Debt and capital lease obligations:



Due within one year           

41,396

30,546

Due after one year

1,039,283

1,133,676

Total debt and capital lease obligations   

1,080,679

1,164,222

    Less unamortized debt issuance costs

18,350

21,555

Total debt and capital lease obligations less debt issuance costs

1,062,329

1,142,667

Total liabilities  

1,278,842

1,334,364




Commitments and contingencies




Member's interest:



Member's interest     

586,757

559,015

Accumulated other comprehensive loss          

(18,103)

(28,617)

Total member's interest

568,654

530,398

Total liabilities and member's interest     

$        1,847,496

$      1,864,762

 

TRAC Intermodal LLC and Subsidiaries

Consolidated Statements of Operations

For the Years Ended December 31, 2015, 2014 and 2013

 (Dollars in Thousands)






Year ended December 31

Revenues:

2015

2014

2013

Equipment leasing revenue     

$    661,247

$    588,287

$   472,571

Finance revenue        

1,536

2,111

3,254

Other revenue           

28,641

36,590

39,419

Total revenues          

691,424

626,988

515,244





Expenses:




Direct operating expenses      

377,715

333,135

289,767

Selling, general and administrative expenses    

91,279

84,346

58,031

Depreciation expense

72,128

72,114

71,791

Provision for doubtful accounts          

(258)

14,007

11,369

Impairment of leasing equipment        

7,277

5,855

5,857

Early retirement of leasing equipment 

37,766

Loss on modification and extinguishment of debt and capital lease obligations

19,852

315

904

Interest expense        

80,246

86,837

91,085

Interest income         

(19)

(61)

(287)

Other income, net      

(1,394)

(925)

(2,074)

Total expenses          

646,826

633,389

526,443





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

44,598

(6,401)

(11,199)

Provision (benefit) for income taxes       

17,880

(3,445)

18,154

Net income (loss)

$      26,718

$      (2,956)

$  (29,353)

 

TRAC Intermodal LLC and Subsidiaries

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2015, 2014 and 2013

(Dollars in Thousands)




Year ended December 31


2015

2014

2013

Cash flows from operating activities




Net income (loss)

$       26,718

$         (2,956)

$       (29,353)

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




Depreciation and amortization

72,227

72,365

72,026

Provision for doubtful accounts

(258)

14,007

11,369

Amortization of deferred financing fees

6,760

6,763

6,183

Loss on modification and extinguishment of debt and capital lease obligations

19,852

315

904

Derivative loss reclassified into earnings

20,177

18,290

19,978

Ineffective portion of cash flow hedges

(85)

(84)

(82)

Impairment of leasing equipment

7,277

5,855

5,857

Early retirement of leasing equipment

37,766

Share-based compensation

625

810

1,181

Deferred income taxes, net

19,123

(4,351)

18,080

Other, net

(1,320)

(928)

(1,340)

Changes in assets and liabilities:




Accounts receivable

24,405

(35,264)

(43,888)

Other assets

(906)

(1,013)

(36)

Accounts payable

(1,188)

2,689

1,822

Accrued expenses and other liabilities

(12,072)

24,285

4,055

Net cash provided by operating activities

181,335

138,549

66,756

Cash flows from investing activities




Proceeds from sale of leasing equipment

11,528

8,265

7,066

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

3,665

4,622

5,706

Proceeds from sale of other assets, net of other investing activity

2,056

Purchase of leasing equipment

(75,357)

(149,376)

(141,113)

Purchase of fixed assets

(16,920)

(4,999)

(4,225)

Net cash used in investing activities

(75,028)

(141,488)

(132,566)

Cash flows from financing activities




Proceeds from long-term debt

1,179,194

148,000

142,000

Repayments of long-term debt

(1,263,736)

(148,292)

(87,290)

Cash paid for debt issuance fees

(9,999)

(3,156)

(2,267)

Premium paid for redemption of notes

(12,375)

Sale of investment in indirect parent

993

Excess tax benefits restricted shares

73

Repurchase of shares from employees

(594)

(858)

(820)

Net cash (used in) provided by financing activities

(106,517)

(4,306)

51,696

Effect of changes in exchange rates on cash and cash equivalents

(885)

(342)

(599)

Net decrease in cash and cash equivalents

(1,095)

(7,587)

(14,713)

Cash and cash equivalents, beginning of year

4,256

11,843

26,556

Cash and cash equivalents, end of year

$         3,161

$           4,256

$         11,843

Supplemental disclosures of cash flow information




Cash paid for interest

$       58,894

$         61,609

$         65,957

Cash (refunded) paid for taxes, net

$          (854)

$           1,136

$              763





 

SOURCE TRAC Intermodal



RELATED LINKS

http://www.tracintermodal.com