First quarter update
(Incorporated in the Republic of South Africa)
(Registration No 1955/002869/06)
Share Code: TRE
FIRST QUARTER UPDATE
Shareholders in Trencor are advised that Textainer Group Holdings Limited (NYSE: TGH), in which Trencor has a 48,5% (31 March 2012: 60,1%) beneficiary interest, has announced net profit attributable to its shareholders in US GAAP of US$48,3 million for the three months ended 31 March 2013 compared with US$49,9 million for the same period in 2012. Textainer’s results may be viewed on its website www.textainer.com.
Adjusted to conform with IFRS, Textainer’s net profit for the three months ended 31 March 2013 was US$50,8 million (same period 2012: US$46,7 million).
Trencor’s earnings for the quarter to 31 March 2013 were as follows:
|3 months ended
|Cents per share Unaudited||Cents per share Unaudited||Cents per share Audited|
Unrealised foreign exchange translation
|ADJUSTED HEADLINE EARNINGS||121,5||113,0||546,1|
|SA rand to US dollar:|
|– Period-end rate of exchange||R9,25||R7,67||R8,48|
|– Average rate of exchange for period||R8,91||R7,71||R8,16|
- Adjusted headline earnings exclude the effect of net unrealised foreign exchange gains and losses arising on the translation of the long-term receivables and related valuation adjustment.
- Average fleet utilisation was 95,4% for the first quarter of 2013 (96,9% for the first quarter 2012);
- Purchased new and used containers costing US$232 million year to date following US$198 million in new containers in the fourth quarter of 2012, for lease outs in 2013;
- Textainer has experienced a significant increase in the useful lives of its containers over the past few years as the company has entered into more lifecycle leases and shipping lines have kept containers on-lease for longer periods. As a result, Textainer has increased the estimated useful lives of its non-refrigerated containers from 12 to 13 years beginning in the first quarter of 2013 based on an extended period of higher useful lives and a view that new equipment lives will remain consistent with recent levels; this is consistent with the useful lives applied by other listed container leasing companies. This change resulted in US$6,3 million less depreciation expense than would have been recorded using the prior 12 year useful lives during the current quarter;
- After the close of the quarter Textainer refinanced one of its revolving credit facilities, reducing the funding costs by 175 basis points and increasing the size by US$50 million to US$170 million;
- Total fleet size at the end of the quarter was 2 809 000 TEU compared to
2 775 000 at 31 December 2012;
- Declared a dividend of US$0,46 per share in respect of the first quarter of 2013.
The financial information on which this update is based has not been reviewed and reported on by Trencor’s independent auditors.
On behalf of the Board
NI Jowell Chairman
8 May 2013
Rand Merchant Bank (A division of FirstRand Bank Limited)