Textainer Group Holdings Limited (TGH) saw its loss widen to $6.97 million, or $0.12 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $3.74 million, or $0.07 a share. On an adjusted basis, net loss for the quarter stood at $9.07 million, or $0.16 a share compared with a net profit of $6.02 million, or $0.11 a share in the last year period. Revenue during the quarter dropped 9.28 percent to $116.69 million from $128.62 million in the previous year period. Gross margin for the quarter contracted 452 basis points over the previous year period to 82.05 percent. Total expenses were 82.83 percent of quarterly revenues, up from 77.16 percent for the same period last year. That has resulted in a contraction of 566 basis points in operating margin to 17.17 percent.
Operating income for the quarter was $20.04 million, compared with $29.37 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $82.11 million compared with $96.24 million in the prior year period. At the same time, adjusted EBITDA margin contracted 445 basis points in the quarter to 70.37 percent from 74.82 percent in the last year period.
“We saw our first sequential growth in lease revenue in more than two years. That growth, combined with a quarter-to-quarter reduction in container impairments and increase in gains on container sales, is further evidence of the strong improvement that we are experiencing in our industry. Both new and used container prices have increased dramatically since the third quarter last year. Additionally, the lease rates for both new and depot container lease-outs have increased even faster than container prices indicating material improvement in lease yields. Our utilization continues to improve as we lease out depot inventory and containers recovered from Hanjin,” stated Philip K. Brewer, president and chief executive officer of Textainer Group Holdings Limited.
Operating cash flow drops significantly
Textainer Group Holdings Limited has generated cash of $46.70 million from operating activities during the quarter, down 34.12 percent or $ 24.19 million, when compared with the last year period. Cash flow from investing activities was $40.46 million for the quarter as against cash outgo of $90.25 million in the last year period.
The company has spent $77.21 million cash to carry out financing activities during the quarter as against cash inflow of $19.53 million in the last year period.
Cash and cash equivalents stood at $94.02 million as on Mar. 31, 2017, down 18.70 percent or $21.63 million from $115.65 million on Mar. 31, 2016.
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