XTRA Reports 2001 Second Quarter Earnings and Announces a New $100 Million Stock Repurchase Authorization

Apr 26, 2001, 01:00 ET from XTRA Corporation

    WESTPORT, Conn., April 26 /PRNewswire/ -- XTRA Corporation (NYSE:   XTR)
 today announced diluted earnings per share and net income of $.67 and
 $8 million, respectively, for the second quarter ended March 31, 2001,
 compared to $1.12 and $13 million for the same quarter a year ago.  The
 average number of diluted shares outstanding declined to 11.4 million in the
 second quarter of fiscal 2001 from 12.0 million in the second quarter of
 fiscal 2000 due to the $51 million of stock repurchased during the fifteen
 months ended March 31, 2001.  These repurchases were accretive to earnings per
 share.
     XTRA also announced today that its Board of Directors approved a new
 $100 million stock repurchase authorization.  The new repurchase authorization
 is part of the Company's ongoing stock repurchase program.  Since February
 1995, the Company has repurchased 6.9 million shares for $300 million,
 representing approximately 41% of its common shares then outstanding.  Year-
 to-date in fiscal 2001, including third quarter activity, the Company has
 repurchased approximately 1.5 million shares of common stock for approximately
 $71 million, substantially completing the Company's current $100 million
 repurchase authorization which was approved in September 1999.  Currently
 there are approximately 10.5 million common shares outstanding.
 
     Business Summary
     Net income for the fiscal second quarter ended March 31, 2001 was
 $8 million, or $.67 diluted earnings per share, on revenues of $105 million.
 Overall equipment utilization for the second quarter of fiscal year 2001
 averaged 77%, compared to 82% for the second quarter of fiscal year 2000.
     For the six months ended March 31, 2001, the Company reported diluted
 earnings per share and net income of $2.23 and $26 million, respectively.
 This compares to diluted earnings per share and net income of $2.74 and
 $34 million for the comparable period of the prior year.
     The contributions to diluted earnings per share from the Company's North
 American and International segments were as follows:
 
                               Three Months Ended             Six Month Ended
                                   March 31,                     March 31,
                               2001          2000         2001          2000
 
     North America             $.83         $1.16        $2.55         $2.81
     International             (.16)         (.04)         (.32)        (.07)
                               $.67         $1.12        $2.23         $2.74
 
     Economic conditions in the domestic and international transportation
 markets have slowed substantially since the fourth quarter of fiscal 2000.
 XTRA's North American and International utilization rates for the second
 quarter of fiscal 2001 both averaged 77% versus 82% a year ago.
 
     Outlook
     Lewis Rubin, XTRA's President and Chief Executive Officer, commented, "As
 we indicated on March 27, 2001, the slowing economy is producing significant
 reductions in worldwide freight tonnage.  As a result, XTRA's utilization
 rates remain below last year's levels.  Overall estimated company-wide
 equipment utilization for the first fifteen days of April 2001 was 76%.
 Although this is modestly better than the 75% overall utilization experienced
 in March 2001, it is still well below last year, when utilization averaged 83%
 for the full month of April 2000.  We expect the Company's financial
 performance to continue to lag behind last year's for our fiscal third quarter
 and full fiscal year."
     Mr. Rubin continued, "XTRA currently has committed capital spending for
 revenue equipment of $55 million for fiscal 2001, primarily for over-the-road
 trailers.  For the full year, we expect total capital spending to be less than
 $100 million, compared to $240 million in fiscal 2000.  Despite lower
 anticipated utilization levels, XTRA expects fiscal 2001 cash flow to remain
 strong, and exceed $280 million.  Cash flow from operations in the first six
 months of fiscal 2001 was $153 million compared to $160 million in the
 comparable prior year period.  XTRA's strong cash flow allows the Company to
 continue to pursue both internal and external growth opportunities.  During
 the first six months of fiscal 2001, in addition to share repurchases, the
 Company reduced its net debt outstanding by $68 million."
     Interested parties are invited to listen to a webcast of the Company's
 Fiscal 2001 Second Quarter analyst conference call tomorrow, Friday, April 27,
 2001, at 10:00 a.m. EST.  The webcast can be accessed via the corporate
 section of the Company's Web site, www.xtra.com .  A replay of the webcast as
 well as a copy of the presentation will be available on the Web site for one
 week following the call.
     XTRA Corporation leases, primarily on an operating basis, over-the-road
 trailers, marine containers, and intermodal equipment, including intermodal
 trailers, chassis, and domestic containers.
 
     This press release contains, in addition to historical information,
 certain forward-looking statements that involve risks and uncertainties.
 These include statements relating to such factors as expected demand and
 utilization, business conditions, and capital expenditures.  Such statements
 are based on management's current expectations and are subject to a number of
 risks and uncertainties that could cause actual results to differ materially
 from those described in the forward-looking statements.  Factors that may
 cause such a difference include, but are not limited to, the variability of
 the Company's revenues and its fixed operating expenses; the impact of the
 North American and international economies on revenues, lease rates and
 utilization; and fluctuations in interest rates and foreign exchange rates.
 These risks are discussed under the caption "Cautionary Statements for
 Purposes of the 'Safe Harbor' Provisions of the Private Securities Litigation
 Reform Act of 1995" in the Company's Annual Report on Form 10-K for the fiscal
 year ended September 30, 2000 on file with the SEC.
 
                       XTRA CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED INCOME STATEMENTS
           (Millions of dollars, except per share and share amounts)
                                  (Unaudited)
 
                              Three Months Ended           Six Months Ended
                                  March 31,                   March 31,
                               2001          2000          2001         2000
 
     Revenues                 $ 105         $ 115        $ 228         $ 242
 
     Operating expenses
     Depreciation on
       rental equipment          37            38           75            75
 
     Rental equipment lease
       financing expense          2             2            5             4
 
     Rental equipment
       operating expenses        27            27           54            55
 
     Selling and
       administrative expense    12            11           25            23
 
                                 78            78          159           157
 
 
          Operating income       27            37           69            85
 
 
     Interest expense            14            15           28            29
 
     Foreign exchange
       (gain)/loss                1             -            1             -
 
     Income before provision
       for income taxes
       and unusual item          12            22           40            56
 
 
     Unusual item: income
       related to acquisition
         break-up fee             -             -            2             -
 
         Pretax income           12            22           42            56
 
     Provision for income taxes   4             9           16            22
 
     Net income                 $ 8          $ 13         $ 26          $ 34
 
     Basic earnings per
       common share           $0.67         $1.12        $2.24         $2.74
     Weighted average basic
       shares outstanding
         (in millions)         11.3          12.0         11.5          12.3
 
     Diluted earnings
       per share              $0.67         $1.12        $2.23        $ 2.74
 
     Weighted average diluted
       shares outstanding
         (in millions)         11.4          12.0         11.5          12.3
 
 
     * Note: Certain amounts in the prior year financial statements have been
 reclassified to be consistent with the current year presentation.
 
     The accompanying notes are an integral part of these consolidated
 financial statements.
 
                       XTRA CORPORATION AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                             (Millions of dollars)
 
                                                     March 31,    September 30,
                                                        2001           2000
                                                    (Unaudited)
 
     Assets
 
       Property and Equipment, net                     $1,375         $1,432
 
       Receivables, net                                   102            116
 
       Other Assets                                        17             18
 
         Total Assets                                  $1,494         $1,566
 
 
     Liabilities and Stockholders' Equity
 
     Liabilities
 
       Debt                                              $719           $788
 
       Deferred Income Taxes                              365            350
 
       Other Liabilities                                   63             67
 
 
     Stockholders' Equity                                 347            361
 
         Total Liabilities & Stockholders' Equity      $1,494         $1,566
 
 
     Net Debt Outstanding                                $718           $786
 
 
                       XTRA CORPORATION AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Millions of dollars)
                                  (Unaudited)
                                                             Six Months
                                                           Ended March 31,
                                                         2001           2000
 
     Cash Provided from Operations (a)                   $153           $160
 
     Cash Used for Investment Activities (b)              (46)           (88)
 
     Cash Used for Financing Activities                   (39)           (30)
 
     Decrease in Net Debt Outstanding
      (Debt - Cash)                                       $68            $42
 
 
     (a) The six months ended March 31, 2000 includes $10 million of sale
     proceeds from equipment purchased in the prior fiscal year and refinanced
     as a part of a $34 million, 10-year operating lease agreement entered into
     during the first quarter of fiscal 2000.
 
 
     (b) The six months ended March 31, 2000 excludes $24 million of equipment
     financed under the 10-year off-balance sheet operating lease.
 
 
 
 
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SOURCE XTRA Corporation
    WESTPORT, Conn., April 26 /PRNewswire/ -- XTRA Corporation (NYSE:   XTR)
 today announced diluted earnings per share and net income of $.67 and
 $8 million, respectively, for the second quarter ended March 31, 2001,
 compared to $1.12 and $13 million for the same quarter a year ago.  The
 average number of diluted shares outstanding declined to 11.4 million in the
 second quarter of fiscal 2001 from 12.0 million in the second quarter of
 fiscal 2000 due to the $51 million of stock repurchased during the fifteen
 months ended March 31, 2001.  These repurchases were accretive to earnings per
 share.
     XTRA also announced today that its Board of Directors approved a new
 $100 million stock repurchase authorization.  The new repurchase authorization
 is part of the Company's ongoing stock repurchase program.  Since February
 1995, the Company has repurchased 6.9 million shares for $300 million,
 representing approximately 41% of its common shares then outstanding.  Year-
 to-date in fiscal 2001, including third quarter activity, the Company has
 repurchased approximately 1.5 million shares of common stock for approximately
 $71 million, substantially completing the Company's current $100 million
 repurchase authorization which was approved in September 1999.  Currently
 there are approximately 10.5 million common shares outstanding.
 
     Business Summary
     Net income for the fiscal second quarter ended March 31, 2001 was
 $8 million, or $.67 diluted earnings per share, on revenues of $105 million.
 Overall equipment utilization for the second quarter of fiscal year 2001
 averaged 77%, compared to 82% for the second quarter of fiscal year 2000.
     For the six months ended March 31, 2001, the Company reported diluted
 earnings per share and net income of $2.23 and $26 million, respectively.
 This compares to diluted earnings per share and net income of $2.74 and
 $34 million for the comparable period of the prior year.
     The contributions to diluted earnings per share from the Company's North
 American and International segments were as follows:
 
                               Three Months Ended             Six Month Ended
                                   March 31,                     March 31,
                               2001          2000         2001          2000
 
     North America             $.83         $1.16        $2.55         $2.81
     International             (.16)         (.04)         (.32)        (.07)
                               $.67         $1.12        $2.23         $2.74
 
     Economic conditions in the domestic and international transportation
 markets have slowed substantially since the fourth quarter of fiscal 2000.
 XTRA's North American and International utilization rates for the second
 quarter of fiscal 2001 both averaged 77% versus 82% a year ago.
 
     Outlook
     Lewis Rubin, XTRA's President and Chief Executive Officer, commented, "As
 we indicated on March 27, 2001, the slowing economy is producing significant
 reductions in worldwide freight tonnage.  As a result, XTRA's utilization
 rates remain below last year's levels.  Overall estimated company-wide
 equipment utilization for the first fifteen days of April 2001 was 76%.
 Although this is modestly better than the 75% overall utilization experienced
 in March 2001, it is still well below last year, when utilization averaged 83%
 for the full month of April 2000.  We expect the Company's financial
 performance to continue to lag behind last year's for our fiscal third quarter
 and full fiscal year."
     Mr. Rubin continued, "XTRA currently has committed capital spending for
 revenue equipment of $55 million for fiscal 2001, primarily for over-the-road
 trailers.  For the full year, we expect total capital spending to be less than
 $100 million, compared to $240 million in fiscal 2000.  Despite lower
 anticipated utilization levels, XTRA expects fiscal 2001 cash flow to remain
 strong, and exceed $280 million.  Cash flow from operations in the first six
 months of fiscal 2001 was $153 million compared to $160 million in the
 comparable prior year period.  XTRA's strong cash flow allows the Company to
 continue to pursue both internal and external growth opportunities.  During
 the first six months of fiscal 2001, in addition to share repurchases, the
 Company reduced its net debt outstanding by $68 million."
     Interested parties are invited to listen to a webcast of the Company's
 Fiscal 2001 Second Quarter analyst conference call tomorrow, Friday, April 27,
 2001, at 10:00 a.m. EST.  The webcast can be accessed via the corporate
 section of the Company's Web site, www.xtra.com .  A replay of the webcast as
 well as a copy of the presentation will be available on the Web site for one
 week following the call.
     XTRA Corporation leases, primarily on an operating basis, over-the-road
 trailers, marine containers, and intermodal equipment, including intermodal
 trailers, chassis, and domestic containers.
 
     This press release contains, in addition to historical information,
 certain forward-looking statements that involve risks and uncertainties.
 These include statements relating to such factors as expected demand and
 utilization, business conditions, and capital expenditures.  Such statements
 are based on management's current expectations and are subject to a number of
 risks and uncertainties that could cause actual results to differ materially
 from those described in the forward-looking statements.  Factors that may
 cause such a difference include, but are not limited to, the variability of
 the Company's revenues and its fixed operating expenses; the impact of the
 North American and international economies on revenues, lease rates and
 utilization; and fluctuations in interest rates and foreign exchange rates.
 These risks are discussed under the caption "Cautionary Statements for
 Purposes of the 'Safe Harbor' Provisions of the Private Securities Litigation
 Reform Act of 1995" in the Company's Annual Report on Form 10-K for the fiscal
 year ended September 30, 2000 on file with the SEC.
 
                       XTRA CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED INCOME STATEMENTS
           (Millions of dollars, except per share and share amounts)
                                  (Unaudited)
 
                              Three Months Ended           Six Months Ended
                                  March 31,                   March 31,
                               2001          2000          2001         2000
 
     Revenues                 $ 105         $ 115        $ 228         $ 242
 
     Operating expenses
     Depreciation on
       rental equipment          37            38           75            75
 
     Rental equipment lease
       financing expense          2             2            5             4
 
     Rental equipment
       operating expenses        27            27           54            55
 
     Selling and
       administrative expense    12            11           25            23
 
                                 78            78          159           157
 
 
          Operating income       27            37           69            85
 
 
     Interest expense            14            15           28            29
 
     Foreign exchange
       (gain)/loss                1             -            1             -
 
     Income before provision
       for income taxes
       and unusual item          12            22           40            56
 
 
     Unusual item: income
       related to acquisition
         break-up fee             -             -            2             -
 
         Pretax income           12            22           42            56
 
     Provision for income taxes   4             9           16            22
 
     Net income                 $ 8          $ 13         $ 26          $ 34
 
     Basic earnings per
       common share           $0.67         $1.12        $2.24         $2.74
     Weighted average basic
       shares outstanding
         (in millions)         11.3          12.0         11.5          12.3
 
     Diluted earnings
       per share              $0.67         $1.12        $2.23        $ 2.74
 
     Weighted average diluted
       shares outstanding
         (in millions)         11.4          12.0         11.5          12.3
 
 
     * Note: Certain amounts in the prior year financial statements have been
 reclassified to be consistent with the current year presentation.
 
     The accompanying notes are an integral part of these consolidated
 financial statements.
 
                       XTRA CORPORATION AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                             (Millions of dollars)
 
                                                     March 31,    September 30,
                                                        2001           2000
                                                    (Unaudited)
 
     Assets
 
       Property and Equipment, net                     $1,375         $1,432
 
       Receivables, net                                   102            116
 
       Other Assets                                        17             18
 
         Total Assets                                  $1,494         $1,566
 
 
     Liabilities and Stockholders' Equity
 
     Liabilities
 
       Debt                                              $719           $788
 
       Deferred Income Taxes                              365            350
 
       Other Liabilities                                   63             67
 
 
     Stockholders' Equity                                 347            361
 
         Total Liabilities & Stockholders' Equity      $1,494         $1,566
 
 
     Net Debt Outstanding                                $718           $786
 
 
                       XTRA CORPORATION AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Millions of dollars)
                                  (Unaudited)
                                                             Six Months
                                                           Ended March 31,
                                                         2001           2000
 
     Cash Provided from Operations (a)                   $153           $160
 
     Cash Used for Investment Activities (b)              (46)           (88)
 
     Cash Used for Financing Activities                   (39)           (30)
 
     Decrease in Net Debt Outstanding
      (Debt - Cash)                                       $68            $42
 
 
     (a) The six months ended March 31, 2000 includes $10 million of sale
     proceeds from equipment purchased in the prior fiscal year and refinanced
     as a part of a $34 million, 10-year operating lease agreement entered into
     during the first quarter of fiscal 2000.
 
 
     (b) The six months ended March 31, 2000 excludes $24 million of equipment
     financed under the 10-year off-balance sheet operating lease.
 
 
 
 
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 SOURCE  XTRA Corporation