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TRAC Intermodal Reports Second Quarter 2014 Earnings

PRINCETON, N.J., Aug. 11, 2014 /PRNewswire/ -- TRAC Intermodal LLC, the largest provider of intermodal chassis in North America, will present its second quarter 2014 earnings and financial results on Tuesday, August 12, 2014 at 9:00 a.m. Eastern Daylight Savings Time. Dial in information for the conference call can be accessed as follows:

https://cossprereg.btci.com/prereg/key.process?key=PTGTVYGQC

Presentation materials to be used by management on the conference call are available on the "Investor Relations" section of the Company's website.  The Company's financial statements are attached as an exhibit to this press release.  An on-demand audio replay of the conference call will also be available on the Company's website within 24 hours of the call. This earnings announcement, as well as additional detailed financial information, is contained in the "Investor Relations" section of the Company's website at www.tracintermodal.com  and on Form 8-K furnished to the Securities and Exchange Commission.   

About TRAC Intermodal

TRAC Intermodal is the world's largest provider of marine and domestic chassis, measured by total assets, operating throughout the United States, Canada and Mexico. TRAC Intermodal provides short term rentals through an extensive chassis pool network, long term chassis leasing and pool/fleet management through the utilization of its proprietary PoolStat® information management system. TRAC Intermodal's active fleet consists of approximately 272,000 chassis. TRAC Intermodal has a broad operating footprint with 630 marine, 167 domestic and 59 depot locations across North America and is the leader in providing chassis solutions to the intermodal industry.

Forward Looking Statements

This press release includes "forward-looking statements"  within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are statements other than statements of historical fact and are often characterized by the use of words such as "believes," "expects," "estimates," "projects," "may," "will," "intends," "plans" or "anticipates," or by discussions of strategy, plans or intentions. All forward-looking statements in this press release are made based on management's current expectations and estimates, which involve risks, uncertainties and other factors that could cause results to differ materially from those expressed in forward-looking statements.  Important factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, the following: the volume of world trade due to economic, political, or other factors; increased operating costs; increased regulatory costs; defaults by our customers; and, the demand for chassis.  More information about potential factors that could affect our business and financial results is included in our filings with the SEC, including in our Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Reports on Form 8-K and our Registration Statement on Form S-4. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information.

FOR MORE INFORMATION:

Investor Relations:
Blake Morris
[email protected]
+1 609.986.0270

Media Requests:
David Hamm
[email protected]
+1 609.986.0260

TRAC Intermodal LLC
211 College Rd East
Princeton, NJ 08540
www.tracintermodal.com

 

Exhibit - Financial Statements

 


TRAC Intermodal LLC and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(Dollars in Thousands)





June 30,

December 31,


2014

2013

Assets



Cash and cash equivalents        

$              13,587

$              11,843

Accounts receivable, net of allowance of $17,127 and $12,475, respectively

127,390

113,138

Net investment in direct finance leases  

19,255

25,026

Leasing equipment, net of accumulated depreciation of $390,286 and $365,429, respectively

1,414,950

1,394,088

Goodwill          

251,907

251,907

Other assets     

43,908

45,908

Total assets   

$         1,870,997

$         1,841,910




Liabilities and member's interest



Liabilities



Accounts payable      

$              13,862

$              12,092

Accrued expenses and other liabilities 

56,769

42,692

Deferred income taxes, net    

93,711

99,331

Debt and capital lease obligations:



Due within one year           

36,596

34,029

Due after one year

1,158,502

1,130,108

Total debt and capital lease obligations   

1,195,098

1,164,137

Total liabilities  

1,359,440

1,318,252




Commitments and contingencies




Member's interest



Member's interest     

545,592

562,006

Accumulated other comprehensive loss          

(34,035)

(38,348)

Total member's interest

511,557

523,658

Total liabilities and member's interest         

$         1,870,997

$         1,841,910

 


TRAC Intermodal LLC and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

 (Dollars in Thousands)







Three Months Ended

Six Months Ended


June 30,

June 30,


2014

2013

2014

2013

Revenues





Equipment leasing revenue     

$    139,715

$      111,967

$    271,084

$      219,514

Finance revenue        

561

808

1,156

1,818

Other revenue           

12,151

14,257

19,838

23,599

Total revenues          

152,427

127,032

292,078

244,931






Expenses





Direct operating expenses      

82,983

73,193

149,816

134,196

Selling, general and administrative expenses    

22,544

13,747

41,113

27,261

Depreciation expense

16,773

17,689

35,277

34,963

Provision for doubtful accounts          

3,660

2,551

7,117

4,707

Impairment of leasing equipment        

1,191

431

2,317

2,564

Early retirement of leasing equipment 

37,766

37,766

Loss on modification and extinguishment of debt and capital lease obligations

80

248

102

895

Interest expense        

21,375

22,688

43,591

45,410

Interest income         

(23)

(269)

(47)

(271)

Other income, net      

(135)

(1,192)

(517)

(1,990)

Total expenses          

186,214

129,086

316,535

247,735






Loss before benefit for income taxes     

(33,787)

(2,054)

(24,457)

(2,804)

Benefit for income taxes           

(12,042)

(821)

(8,186)

(1,136)

Net loss

$    (21,745)

$       (1,233)

$   (16,271)

$       (1,668)

 

TRAC Intermodal LLC and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

 (Dollars in Thousands)


Six Months Ended 

June 30,




2014

2013

Cash flows from operating activities



Net loss  

$           (16,271)

$            (1,668)

Adjustments to reconcile net loss to net cash provided by operating activities:



Depreciation and amortization          

35,407

35,084

Provision for doubtful accounts        

7,117

4,707

Amortization of deferred financing fees            

3,296

3,035

Loss on modification and extinguishment of debt and capital lease obligations

102

895

Derivative loss reclassified into earnings           

8,995

10,248

Ineffective portion of cash flow hedges            

(41)

(40)

Impairment of leasing equipment      

2,317

2,564

Early retirement of leasing equipment

37,766

Share-based compensation

436

533

Deferred income taxes, net

(9,113)

(947)

Other, net          

(521)

(1,253)

Changes in assets and liabilities:



Accounts receivable      

(21,430)

(30,173)

Other assets  

(2,030)

(2,241)

Accounts payable         

1,770

4,954

Accrued expenses and other liabilities          

13,651

2,577

Net cash provided by operating activities         

61,451

28,275




Cash flows from investing activities



Proceeds from sale of leasing equipment               

6,694

5,036

Collections on net investment in direct finance leases, net of interest earned       

2,359

2,861

Purchase of leasing equipment               

(95,888)

(88,726)

Purchase of fixed assets         

(1,023)

(2,339)

Net cash used in investing activities 

(87,858)

(83,168)




Cash flows from financing activities



Proceeds from long-term debt

92,000

86,000

Repayments of long-term debt              

(61,192)

(48,824)

Cash paid for debt issuance fees            

(1,973)

(1,769)

Repurchase of indirect parent shares from employees          

(585)

(470)

Net cash provided by financing activities         

28,250

34,937




Effect of changes in exchange rates on cash and cash equivalents         

(99)

(241)

Net increase (decrease) in cash and cash equivalents             

1,744

(20,197)

Cash and cash equivalents, beginning of year        

11,843

26,556

Cash and cash equivalents, end of period        

$             13,587

$               6,359

Supplemental disclosures of cash flow information



Cash paid for interest            

$             31,224

$             32,845

Cash paid for taxes, net         

$                  937

$                    28




 

SOURCE TRAC Intermodal LLC

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