Textainer (TGH) - 2022 Q3 - Quarterly Report

Financial Performance - Total revenues for Q3 2022 reached $205,152,000, a 4.7$195,830,000 in Q3 2021[14] - Net income attributable to common shareholders for Q3 2022 was $76,400,000, up 18.2$64,729,000 in Q3 2021[14] - The company reported a comprehensive income of $124,861,000 for Q3 2022, compared to$70,781,000 in Q3 2021, reflecting a significant increase of 76.3%[18] - Operating income for the nine months ended September 30, 2022, was $360,855,000, a 14.1$316,145,000 in the same period of 2021[14] - Net income for the nine months ended September 30, 2022, was $242,601, an increase of 17.5$206,434 in 2021[26] - Basic earnings per share (EPS) for Q3 2022 was $1.66, up from$1.31 in Q3 2021, indicating a growth of 27%[98] Assets and Liabilities - Total assets as of September 30, 2022, amounted to $7,797,035,000, an increase from$7,367,444,000 at the end of 2021[20] - The company reported a net investment in finance leases of $1,721,419,000 as of September 30, 2022, compared to$1,693,042,000 at the end of 2021[20] - Total debt obligations as of September 30, 2022, amounted to $5,693,447, up from$5,340,520 as of December 31, 2021, representing an increase of about 6.6%[72] - The fair value of net investment in finance leases was approximately $1,729,136 as of September 30, 2022, down from$1,810,712 as of December 31, 2021, a decrease of about 4.5%[61] Cash Flow - Net cash provided by operating activities increased to $537,651 for the nine months ended September 30, 2022, up from$383,617 in 2021, representing a growth of 40.4%[26] - Cash and cash equivalents as of September 30, 2022 amounted to $252,632, with cash provided by operating activities for the nine months being$724,306[139] - Net cash used in investing activities decreased by $842,168 to$(732,299) for the nine months ended September 30, 2022, compared to $(1,574,467) in 2021[152] Shareholder Activities - The company repurchased 4,093,505 shares at an average price of$32.68 during the nine months ended September 30, 2022, totaling $133.775 million[91] - The board of directors approved an increase to the share repurchase program by an additional$100 million in October 2022, raising the total authorization to $450 million[99] - The company paid$14,906 in cash dividends to preferred shareholders during the nine months ended September 30, 2022, with cumulative undeclared and unpaid preferred dividends of $854[143] Revenue Streams - Total lease rental income for the three months ended September 30, 2022 was$205,152 million, compared to $195,830 million for the same period in 2021, representing an increase of approximately 4.7$607,102 million, up from $552,508 million in 2021, indicating a growth of about 9.9$54,594 (9.9%) compared to the same period in 2021, driven by a $37,396 increase from the growth of the fleet on finance leases[115] Expenses - Total operating expenses for the nine months ended September 30, 2022, were$311,842,000, compared to $299,367,000 in the same period of 2021, reflecting a 4.2$41,242,000, compared to $33,128,000 in Q3 2021, indicating a 24.5$3,507 (67.3%) compared to the same period in 2021, primarily due to higher maintenance and handling expenses[120] Market Conditions - The company has experienced a reduction in container demand starting in the second half of 2022 after a historic production period in 2021[112] - The average lease rates for containers increased by 4.0% for the nine months ended September 30, 2022, compared to the same period in 2021, reflecting a favorable market environment[109] - The company remains well-positioned with a healthy balance sheet and a portfolio of secured long-term lease contracts despite ongoing market uncertainties[112] Investments and Impairments - The company recorded impairment charges of $1,935 for container leasing equipment due to lessees in default for the nine months ended September 30, 2022, compared to$2,793 in 2021, showing a decrease of 30.8%[36] - The company recorded container impairment charges of $783 for the nine months ended September 30, 2022, compared to reversals of$(279) in 2021, indicating a shift in asset valuation[38] Compliance and Risk Management - The Company was in full compliance with its debt covenants as of September 30, 2022[72] - Approximately 88% of the company's debt is either fixed or hedged using derivative instruments, mitigating the impact of changes in short-term interest rates[159]