Textainer Group Holdings Limited (TGH) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $45.92 million, or $ 0.81 a share in the quarter, against a net profit of $10.55 million, or $0.18 a share in the last year period. On adjusted basis, net loss for the quarter stood at $52.30 million, or $0.92 a share compared with a net profit of $18.34 million, or $0.32 a share in the last year period.
Revenue during the quarter dropped 11.22 percent to $121.21 million from $136.53 million in the previous year period. Gross margin for the quarter contracted 512 basis points over the previous year period to 83.22 percent. Operating margin for the quarter stood at negative 31.77 percent as compared to a positive 32.40 percent for the previous year period.
Operating loss for the quarter was $38.51 million, compared with an operating income of $44.24 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $68.07 million compared with $105.07 million in the prior year period. At the same time, adjusted EBITDA margin contracted 2079 basis points in the quarter to 56.16 percent from 76.95 percent in the last year period.
"Our third quarter results were negatively affected by several significant factors the biggest of which was the bankruptcy filing by Hanjin. We recorded $22.1 million of container impairments net of estimated insurance proceeds of $20.2 million, $17.1 million of bad debt provision net of estimated insurance proceeds of $2.6 million which combined with $4.8 million of revenue reduction, resulted in a $44.0 million (or $0.78 per dilute common share) negative financial impact for the quarter as a result of the bankruptcy of Hanjin," commented Philip K. Brewer, president and chief executive officer of Textainer Group Holdings Limited. "In addition to Hanjin, our results were hurt by ongoing impairments due to low used container prices which also prompted our decision to reduce residual values for certain equipment types."
Operating cash flow declines
Textainer Group Holdings Limited has generated cash of $223.26 million from operating activities during the nine month period, down 20.05 percent or $55.98 million, when compared with the last year period.
The company has spent $213.62 million cash to meet investing activities during the nine month period as against cash outgo of $277.22 million in the last year period. It has incurred net capital expenditure of $288.38 million on net basis during the nine month period, down 18.37 percent or $64.89 million from year ago period.
The company has spent $33.56 million cash to carry out financing activities during the nine month period as against cash outgo of $14.67 million in the last year period.
Cash and cash equivalents stood at $91.59 million as on Sep. 30, 2016, down 2.79 percent or $2.62 million from $94.21 million on Sep. 30, 2015.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
