Textainer (TGH) - 2023 Q3 - Quarterly Report

Financial Performance - Total lease rental income for Q3 2023 was $192.5 million, a slight increase from$192.2 million in Q2 2023 but a decrease from $205.2 million in Q3 2022[7]. - Net income attributable to common shareholders for Q3 2023 was$44.7 million, or $1.07 per diluted common share, down from$51.3 million, or $1.20 per diluted common share in Q2 2023[7]. - Adjusted EBITDA for Q3 2023 was$160.5 million, compared to $163.0 million in Q2 2023[7]. - Total revenues for Q3 2023 were$192,497, a decrease of 6.8% from $205,152 in Q3 2022[21]. - Operating income for Q3 2023 was$92,165, a decline of 25.3% compared to $123,292 in Q3 2022[21]. - Net income attributable to common shareholders for the nine months ended September 30, 2023, was$149,635, down 34.3% from $227,695 in the same period of 2022[21]. - Basic net income per share for Q3 2023 was$1.09, down from $1.66 in Q3 2022, a decrease of 34.3$45,410,000, compared to $51,332,000 in Q2 2023 and$76,562,000 in the same period last year[31]. - Headline earnings for Q3 2023 were $44,260,000, compared to$51,332,000 in Q2 2023 and $77,259,000 in Q3 2022[32]. - Headline earnings per diluted common share for Q3 2023 was$1.06, down from $1.20 in Q2 2023 and$1.65 in Q3 2022[32]. Asset and Liability Management - Total current assets decreased to $495,339 as of September 30, 2023, from$521,545 at the end of 2022, representing a decline of 5.0%[23]. - Total liabilities decreased to $5,285,760 as of September 30, 2023, from$5,616,945 at the end of 2022, a reduction of 5.9%[23]. - Cash and cash equivalents at the end of Q3 2023 were $140,999, down from$164,818 at the end of 2022, a decrease of 14.5%[23]. - Total shareholders' equity increased to $2,020,731 as of September 30, 2023, from$1,996,289 at the end of 2022, an increase of 1.2%[23]. Operational Metrics - Average fleet utilization rate for Q3 2023 was 99.0%, slightly up from 98.8% in Q2 2023[7]. - The total fleet size at the end of Q3 2023 was 4,329,157 TEU, a decrease from 4,334,809 TEU in Q2 2023[7]. - The owned percentage of the total fleet at the end of Q3 2023 was 93.9%, up from 93.8% in Q2 2023[7]. - Textainer added $162.4 million of new containers through the first nine months of 2023, with virtually all assigned to long-term leases[7]. - The company reported a trading container margin of$306 for Q3 2023, down from $457 in Q3 2022, a decline of 33.0$0.30 per common share, payable on December 15, 2023[7]. - Textainer has suspended its share repurchase program in light of the pending acquisition transaction[7]. Acquisition and Corporate Actions - Textainer announced a definitive agreement to be acquired by Stonepeak for $50.00 per share in cash, expected to close in Q1 2024[10][11]. Other Financial Considerations - Total interest expense for Q3 2023 was$43,751,000, an increase from $42,138,000 in Q2 2023[31]. - The company reported a container recovery write-off from lessee default of$1,160,000 in Q3 2023[32]. - Transaction and other costs amounted to $733,000 in Q3 2023, consistent with the previous quarter[31]. - The company experienced an unrealized loss on marketable securities of$204,000 in Q3 2023[31]. - The report indicates that non-GAAP measures have limitations and should not be relied upon in isolation from GAAP measures[30].