Textainer (US:TGH)2022-08-09 17:41Financial Performance - Total revenues for Q2 2022 reached $203,232,000, a 8.8% increase from $187,434,000 in Q2 2021[14] - Net income attributable to common shareholders for Q2 2022 was $78,590,000, up 6.1% from $73,795,000 in Q2 2021[14] - Basic earnings per share increased to $1.66 in Q2 2022 from $1.48 in Q2 2021, representing an increase of 12.2%[14] - Comprehensive income attributable to common shareholders for Q2 2022 was $108,779,000, compared to $70,482,000 in Q2 2021, an increase of 54.3%[17] - Net income for the six months ended June 30, 2022, was $161,233,000, compared to $138,091,000 for the same period in 2021, representing an increase of approximately 16.5%[26] - The company reported a total operating income of $122,847,000 for Q2 2022, up from $110,007,000 in Q2 2021, an increase of 11.5%[14] - The Company reported a segment income before income taxes of $164,919,000 for the first half of 2022, compared to $139,040,000 for the first half of 2021, reflecting an 18.6% increase[80] Assets and Liabilities - Total assets as of June 30, 2022, were $7,895,527,000, compared to $7,367,444,000 at the end of 2021, reflecting a growth of 7.1%[20] - Total liabilities increased to $5,968,725,000 as of June 30, 2022, from $5,586,190,000 at the end of 2021, marking a rise of 6.8%[20] - Cash and cash equivalents increased to $220,413,000 as of June 30, 2022, from $206,210,000 at the end of 2021, a growth of 6.0%[20] - Cash, cash equivalents, and restricted cash at the end of the period were $312,140,000, down from $400,978,000 at the end of June 2021[26] - The Company's total debt obligations as of June 30, 2022, amounted to $5,707.06 million, an increase from $5,340.52 million as of December 31, 2021[72] Cash Flow and Investments - Total cash provided by operating activities for the first half of 2022 was $384,229,000, up from $274,014,000 in 2021, indicating a growth of about 40%[26] - The company reported a net cash used in investing activities of $603,944,000 for the first half of 2022, a decrease from $891,397,000 in 2021[26] - The company experienced a gain on the sale of owned fleet containers, netting $39,126,000 for the first half of 2022, compared to a loss of $31,194,000 in 2021[26] - The company repurchased 2,375,508 shares at an average price of $34.35 for a total of $81.6 million during the first half of 2022[90] - The company paid dividends of $23,858,000 on common shares and $9,938,000 on preferred shares during the first half of 2022[26] Operational Metrics - The company’s total lease rental income for the first half of 2022 was $401,950,000, a 12.7% increase from $356,678,000 in the first half of 2021[14] - Average lease rates for containers on operating leases increased by 4.8% for the six months ended June 30, 2022, compared to the same period in 2021[111] - The total fleet size as of June 30, 2022, was approximately 4.5 million TEU, an increase from 4.3 million TEU as of December 31, 2021[111] - Average fleet utilization was 99.6% for both the three and six months ended June 30, 2022[112] - The company managed containers on behalf of 10 unaffiliated container investors, accounting for approximately 7% of the fleet in TEUs as of June 30, 2022[111] Market Conditions and Risks - The ongoing Russia-Ukraine war and COVID-19 pandemic have created uncertainty in the market, but the company remains optimistic about its outlook for the rest of the year[114] - Container prices for 20' dry containers are currently in the range of $2,700, which remains high historically[111] - The company estimated that a 1% increase in interest rates on unhedged debt would result in an increase of $7,231 in interest expense over the next twelve months[163] Shareholder Returns and Capital Management - The board of directors approved a share repurchase program increase to $350 million, allowing for further buybacks through January 1, 2025[100] - The company had container purchase commitments totaling $36.9 million as of June 30, 2022[86] - The company has provided an average of approximately 420,000 TEU of new containers per year over the past five years[109] Tax and Compliance - The effective income tax rates for the three months ended June 30, 2022, and 2021 were 2.4% and -0.2%, respectively, indicating a significant increase in the tax burden[71] - The Company was in full compliance with its debt agreements' restrictive covenants as of June 30, 2022[72]