Textainer (TGH) - 2023 Q2 - Quarterly Report

Financial Performance - Net income for the three months ended June 30, 2023, was $56,301 thousand, a decrease of 32.5% compared to$ 83,559 thousand for the same period in 2022[17]. - The company reported a net income attributable to common shareholders of $51,332 thousand for Q2 2023, down 34.6% from$ 78,590 thousand in Q2 2022[17]. - Net income for the six months ended June 30, 2023, was $114,896 thousand, a decrease of 29% compared to$ 161,233 thousand for the same period in 2022[26]. - Comprehensive income attributable to common shareholders for the three months ended June 30, 2023, was $78,260 thousand, down from$ 108,779 thousand in the same period of 2022, a decrease of 28.1%[20]. - Basic earnings per share for the three months ended June 30, 2023, was $1.22, compared to$ 1.66 for the same period in 2022, reflecting a decrease of 26.5%[17]. Revenue and Income Sources - Total lease rental income for the three months ended June 30, 2023, was $192,163 thousand, down 5.4% from$ 203,232 thousand in the same period of 2022[17]. - Total lease rental income for Q2 2023 was $10,693 million, a decrease from$ 12,678 million in Q2 2022, representing a decline of approximately 15.7%[51]. - For the six months ended June 30, 2023, total lease rental income was $21,803 million, down from$ 25,319 million in the same period of 2022, reflecting a decrease of about 13.5%[51]. - Management fees from non-leasing services amounted to $710 million for Q2 2023, compared to$ 673 million in Q2 2022, indicating an increase of approximately 5.5%[51]. Expenses and Liabilities - Operating expenses for the three months ended June 30, 2023, totaled $103,097 thousand, slightly decreased from$ 104,718 thousand in the prior year, indicating a reduction of 1.5%[17]. - The total current liabilities increased to $507,247 thousand as of June 30, 2023, compared to$ 429,898 thousand at December 31, 2022, marking an increase of approximately 18%[15]. - The company incurred share-based compensation expenses of $4,551 thousand in the first half of 2023, compared to$ 3,498 thousand in the same period of 2022, indicating an increase of approximately 30%[26]. - Interest paid in the first half of 2023 was $79,020 thousand, compared to$ 66,344 thousand in the same period of 2022, representing an increase of approximately 19%[26]. Cash Flow and Investments - Total cash provided by operating activities for the first half of 2023 was $308,790 thousand, down from$ 384,229 thousand in 2022, reflecting a decline of approximately 19.6%[26]. - Cash flows from investing activities showed a net inflow of $43,259 thousand in 2023, contrasting with a significant outflow of$ 603,944 thousand in 2022[26]. - Cash, cash equivalents, and restricted cash at the end of the period were $256,074 thousand, down from$ 312,140 thousand at the end of June 2022[26]. Debt and Financing - The company’s debt, net of unamortized costs, decreased to $4,872,129 thousand as of June 30, 2023, from$ 5,127,021 thousand at December 31, 2022, a reduction of approximately 5%[15]. - The total outstanding principal balance on the company's debt facilities was $5,295,075 as of June 30, 2023, with$ 400,327 due within the next twelve months[135]. - The Company had a total commitment of $6,179,176 for its debt facilities, with outstanding borrowings of$ 5,295,075, indicating a borrowing capacity excess of $351,765 as of June 30, 2023[69]. - Approximately 92% of the company's debt is either fixed or hedged using derivative instruments, mitigating the impact of changes in short-term interest rates[151]. Asset Management - Total assets decreased to$ 7,435,156 thousand as of June 30, 2023, down from $7,613,234 thousand at December 31, 2022, representing a decline of approximately 2.34%[15]. - The company’s retained earnings rose to$ 1,522,287 thousand as of June 30, 2023, up from $1,443,737 thousand at the end of 2022, representing an increase of 5.5%[15]. - The carrying value of containers held for sale that were impaired and written down to their estimated fair value less cost to sell was$ 4,365 million as of June 30, 2023, compared to $3,556 million as of December 31, 2022[41]. - The net investment in finance leases as of June 30, 2023, was$ 1.755 billion, a decrease from $1.821 billion as of December 31, 2022[56]. Market Conditions and Outlook - The container leasing market is normalizing in 2023, with moderated container prices and decreased utilization following a period of high demand[106]. - The market growth outlook is improving with resilience in Europe and North America, easing inflationary pressures, and anticipated recovery in China[107]. - Key factors affecting performance include demand for leased containers, lease rates, and global macroeconomic factors[108]. Shareholder Returns - Dividends paid on common shares increased to$ 25,398 thousand in 2023 from $23,858 thousand in 2022, reflecting an increase of about 6.5%[26]. - Common share dividends for Q2 2023 totaled$ 12,533,000, with a per share payment of $0.30, compared to$ 11,804,000 and $0.25 in Q2 2022[91]. - The company has increased its share repurchase program by an additional$ 100 million, raising the total to $550 million[95].