Textainer Group Holdings (TGH) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.35 million, or $ 0.01 a share in the quarter, against a net profit of $21.67 million, or $0.38 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $13.61 million, or $0.24 a share compared with a net profit of $12.94 million, or $0.23 a share in the last year period.
Revenue during the quarter dropped 7.41 percent to $120.08 million from $129.69 million in the previous year period. Gross margin for the quarter contracted 649 basis points over the previous year period to 81.07 percent. Total expenses were 91.96 percent of quarterly revenues, up from 70.67 percent for the same period last year. That has resulted in a contraction of 2129 basis points in operating margin to 8.04 percent.
Operating income for the quarter was $9.66 million, compared with $38.04 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $86.19 million compared with $104.48 million in the prior year period. At the same time, adjusted EBITDA margin contracted 878 basis points in the quarter to 71.78 percent from 80.56 percent in the last year period.
"Our fourth quarter results improved significantly compared to the prior quarter, primarily due to improved market conditions and the prior quarter’s results being significantly impacted by Hanjin. Our adjusted net loss decreased by $38.7 million, compared to the prior quarter," stated Philip K. Brewer, president and chief executive officer of Textainer Group Holdings Limited. "During 2016, we invested $480 million to purchase 286,000 TEU of new and used containers and our utilization remained high at 94.5 percent".
Operating cash flow declinesTextainer Group Holdings has generated cash of $286.09 million from operating activities during the year, down 23.09 percent or $85.87 million, when compared with the last year. The company has spent $288.62 million cash to meet investing activities during the year as against cash outgo of $305.63 million in the last year. It has incurred net capital expenditure of $378.97 million on net basis during the year, down 6.16 percent or $24.89 million from year ago.
The company has spent $28.78 million cash to carry out financing activities during the year as against cash outgo of $57.56 million in the last year period.
Cash and cash equivalents stood at $84.04 million as on Dec. 31, 2016, down 27.29 percent or $31.55 million from $115.59 million on Dec. 31, 2015.
Debt moves up marginally
Textainer Group Holdings has witnessed an increase in total debt over the last one year. It stood at $3,038.30 million as on Dec. 31, 2016, up 1.15 percent or $34.65 million from $3,003.65 million on Dec. 31, 2015. Interest coverage ratio deteriorated to 0.40 for the quarter from 2.01 for the same period last year.
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