PRINCETON, N.J. – August 8, 2016 – TRAC Intermodal LLC, the largest provider of intermodal chassis in North America, reports its second quarter 2016 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 271,000 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 Securities and Exchange Commission, 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.

 

Source: TRAC Intermodal

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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)

 
 

June 30,

December 31,

 

2016

2015

Assets
Cash and cash equivalents

$               6,348

$             3,161

Accounts receivable, net of allowance of $8,338 and $12,454, respectively

101,910

110,662

Net investment in direct finance leases

12,343

12,797

Leasing equipment, net of accumulated depreciation of $473,906 and $452,962, respectively

1,417,631

1,435,978

Goodwill

256,815

251,907

Other assets

45,464

32,991

Total assets    

$        1,840,511

$      1,847,496

 
Liabilities and member’s interest
Liabilities
Accounts payable

$             17,360

$           13,593

Accrued expenses and other liabilities

55,038

75,340

Deferred income taxes, net

133,601

127,580

Debt and capital lease obligations:
Due within one year

47,406

41,396

Due after one year

1,077,811

1,039,283

Total debt and capital lease obligations

1,125,217

1,080,679

     Less unamortized debt issuance costs

16,523

18,350

Total debt and capital lease obligations less debt issuance costs

1,108,694

1,062,329

Total liabilities

1,314,693

1,278,842

Redeemable indirect parent shares held by management

2,464

Commitments and contingencies

Member’s interest

Member’s interest

540,420

586,757

Accumulated other comprehensive loss

(17,066) (18,103)
Total member’s interest

523,354

568,654

Total liabilities and member’s interest          

$        1,840,511

$      1,847,496

 

 

 

 

TRAC Intermodal LLC and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

 (Dollars in Thousands)

 

 
  Three Months Ended Six Months Ended
  June 30, June 30,
2016 2015 2016 2015
Revenues
Equipment leasing revenue $   152,612 $   169,438 $   313,375 $   330,127
Finance revenue 356 389 700 795
Other revenue 10,708 7,786 17,943 15,446
Total revenues 163,676 177,613 332,018 346,368
 
Expenses
Direct operating expenses 94,798 99,969 189,009 184,920
Selling, general and administrative expenses 24,103 23,012 50,517 44,288
Depreciation expense 18,764 17,914 37,610 35,815
Provision (recovery) for doubtful accounts 492 99 (473) 2,171
Impairment of leasing equipment 5,974 2,569 7,973 4,002
Restructuring expense 1,404 1,404
Loss on modification and extinguishment of debt and capital lease obligations 39
Interest expense 16,388 21,506 33,218 43,603
Interest income 25 (100) (1)
Other income, net (408) (221) (868) (775)
Total expenses 161,540 164,848 318,290 314,062
Income before provision for income taxes 2,136 12,765 13,728 32,306
Provision for income taxes 849 5,054 5,483 12,434
Net income $       1,287 $       7,711 $       8,245 $     19,872

 

 

 

TRAC Intermodal LLC and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

 (Dollars in Thousands)

  Six  Months Ended June 30,
  2016 2015
Cash flows from operating activities
Net income $           8,245 $         19,872
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 37,645 35,874
(Recovery) provision for doubtful accounts (473) 2,171
Amortization of deferred financing fees 1,974 3,636
Loss on modification and extinguishment of debt and capital lease obligations 39
Derivative loss reclassified into earnings 8,566 10,526
Ineffective portion of cash flow hedges 251 (42)
Impairment of leasing equipment 7,973 4,002
Share-based compensation 1,169 349
Deferred income taxes, net 5,196 13,340
Other, net (542) (783)
Changes in assets and liabilities:
Accounts receivable 11,063 1,259
Other assets (4,243) (2,079)
Accounts payable 1,579 3,601
Accrued expenses and other liabilities (9,602) (6,401)
Net cash provided by operating activities           68,801 85,364
 
Cash flows from investing activities
Proceeds from sale of leasing equipment 3,075 7,288
Collections on net investment in direct finance leases, net of interest earned 1,470 2,010
Business acquisition (4,781)
Investment in direct finance leases (887)
Purchase of leasing equipment (47,519) (16,728)
Purchase of fixed assets (8,703) (10,183)
Net cash used in investing activities    (57,345) (17,613)
 
Cash flows from financing activities
Proceeds from long-term debt 132,500 66,750
Repayments of long-term debt (88,179) (134,694)
Cash paid for debt issuance fees (146)
Repurchase of indirect parent shares from employees (1,366)
Dividend paid, net of dividend received (51,145)
Net cash used in financing activities   (8,336) (67,944)
Effect of changes in exchange rates on cash and cash equivalents 67 (346)
Net increase (decrease) in cash and cash equivalents 3,187 (539)
Cash and cash equivalents, beginning of year 3,161 4,256
Cash and cash equivalents, end of period          $           6,348 $           3,717
Supplemental disclosures of cash flow information
Cash paid for interest $         22,483 $         29,490
Cash paid (refunded) for taxes, net $              186 $           (809)