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001-32845
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32-0163571
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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39 East Union Street
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Pasadena, California
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91103
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(Address of Principal Executive Offices)
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(Zip Code)
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Page
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Item 2.02
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Results of Operations and Financial Condition
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1
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Item 9.01
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Financial Statements and Exhibits
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1
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Exhibit 99.1
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Press Release of GFN dated February 6, 2017
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Exhibit
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Exhibit Description
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99.1
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Press Release of GFN dated February 6, 2017
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GENERAL FINANCE CORPORATION
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Dated: February 6, 2017
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By:
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/s/ CHRISTOPHER A. WILSON
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Christopher A. Wilson
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General Counsel, Vice President and Secretary
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Exhibit
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Number
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Exhibit Description
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99.1
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Press Release of GFN dated February 6, 2017
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·
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Total revenues were $72.3 million, compared to $83.3 million for the second quarter of fiscal year 2016.
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·
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Leasing revenues comprised 64% of total non-manufacturing revenues versus 55% for the second quarter of fiscal year 2016.
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·
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Leasing revenues increased by 5%, excluding the oil and gas sector and the favorable foreign currency impact.
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·
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Adjusted EBITDA was $17.8 million, compared to $18.9 million in the second quarter of fiscal year 2016.
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·
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Adjusted EBITDA margin was 25%, compared to 23% in the second quarter of fiscal year 2016.
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·
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Net loss attributable to common shareholders was $0.6 million, or $0.02 per diluted share, compared to net income attributable to common shareholders of $0.1 million, or $0.00 per diluted share, for the second quarter of fiscal year 2016.
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·
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Average fleet unit utilization was 79% for both second quarter periods of fiscal years 2016 and 2017.
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·
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One acquisition completed in the Asia-Pacific region during the quarter.
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·
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Total revenues were $135.1 million, compared to $147.1 million for the first six months of fiscal year 2016.
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·
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Leasing revenues comprised 65% of total non-manufacturing revenues versus 60% for the first six months of fiscal year 2016.
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·
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Leasing revenues increased by 8%, excluding the oil and gas sector and the favorable foreign currency impact.
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·
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Adjusted EBITDA was $30.7 million, compared to $32.8 million for the first six months of fiscal year 2016.
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·
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Adjusted EBITDA margin was 23%, compared to 22% in the six months of fiscal year 2016.
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·
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Net loss attributable to common shareholders was $2.8 million, or $0.11 per diluted share, compared to net loss attributable to common shareholders of $1.9 million, or $0.07 per diluted share, for the first six months of fiscal year 2016.
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·
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Average fleet unit utilization was 77% for both six month periods of fiscal years 2016 and 2017.
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·
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Completed three acquisitions during the first six months of fiscal year 2017, two in North America and one in the Asia-Pacific region.
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Quarter Ended December 31,
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Six Months Ended December 31,
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|||||||||||||||
2015
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2016
|
2015
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2016
|
|||||||||||||
Revenues
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||||||||||||||||
Sales:
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||||||||||||||||
Lease inventories and fleet
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$
|
36,706
|
$
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25,387
|
$
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57,027
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$
|
45,759
|
||||||||
Manufactured units
|
2,485
|
1,663
|
4,622
|
2,757
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||||||||||||
39,191
|
27,050
|
61,649
|
48,516
|
|||||||||||||
Leasing
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44,076
|
45,277
|
85,404
|
86,609
|
||||||||||||
83,267
|
72,327
|
147,053
|
135,125
|
|||||||||||||
Costs and expenses
|
||||||||||||||||
Cost of sales:
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||||||||||||||||
Lease inventories and fleet (exclusive of the items shown separately below)
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28,039
|
18,140
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42,584
|
31,972
|
||||||||||||
Manufactured units
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3,509
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2,115
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6,333
|
3,527
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||||||||||||
Direct costs of leasing operations
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17,622
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18,658
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34,197
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36,518
|
||||||||||||
Selling and general expenses
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16,174
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16,429
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32,938
|
32,957
|
||||||||||||
Depreciation and amortization
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9,235
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9,888
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18,314
|
19,391
|
||||||||||||
Operating income
|
8,688
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7,097
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12,687
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10,760
|
||||||||||||
Interest income
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20
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13
|
37
|
36
|
||||||||||||
Interest expense
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(4,965
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)
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(5,016
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)
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(9,980
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)
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(9,847
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)
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||||||||
Foreign currency exchange gain (loss) and other
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(611
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)
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189
|
(503
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)
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94
|
||||||||||
(5,556
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)
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(4,814
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)
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(10,446
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)
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(9,717
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)
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|||||||||
Income before provision for income taxes
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3,132
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2,283
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2,241
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1,043
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||||||||||||
Provision for income taxes
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1,252
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913
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896
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417
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||||||||||||
Net income
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1,880
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1,370
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1,345
|
626
|
||||||||||||
Preferred stock dividends
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(922
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)
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(922
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)
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(1,844
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)
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(1,844
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)
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||||||||
Noncontrolling interests
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(861
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)
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(1,087
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)
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(1,424
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)
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(1,558
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)
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||||||||
Net income (loss) attributable to common
stockholders
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$
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97
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$
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(639
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)
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$
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(1,923
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)
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$
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(2,776
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)
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|||||
Net income (loss) per common share:
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||||||||||||||||
Basic
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$
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0.00
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$
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(0.02
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)
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$
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(0.07
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)
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$
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(0.11
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)
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|||||
Diluted
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0.00
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(0.02
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)
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(0.07
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)
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(0.11
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)
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|||||||||
Weighted average shares outstanding:
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||||||||||||||||
Basic
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26,029,117
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26,300,061
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26,018,997
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26,259,433
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||||||||||||
Diluted
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26,321,491
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26,300,061
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26,018,997
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26,259,433
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June 30, 2016
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December 31, 2016
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|||||||
Assets
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||||||||
Cash and cash equivalents
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$
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9,342
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$
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6,388
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||||
Trade and other receivables, net
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38,067
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46,660
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||||||
Inventories
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34,609
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31,515
|
||||||
Prepaid expenses and other
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9,366
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9,301
|
||||||
Property, plant and equipment, net
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26,951
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25,053
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||||||
Lease fleet, net
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419,345
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420,344
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||||||
Goodwill
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102,546
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103,107
|
||||||
Other intangible assets, net
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33,348
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30,643
|
||||||
Total assets
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$
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673,574
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$
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673,011
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||||
|
||||||||
Liabilities
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||||||||
Trade payables and accrued liabilities
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$
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43,476
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$
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38,686
|
||||
Income taxes payable
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175
|
—
|
||||||
Unearned revenue and advance payments
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14,085
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14,635
|
||||||
Senior and other debt, net
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352,220
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361,350
|
||||||
Deferred tax liabilities
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39,006
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39,040
|
||||||
Total liabilities
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448,962
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453,711
|
||||||
|
||||||||
Commitments and contingencies
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—
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—
|
||||||
|
||||||||
Equity
|
||||||||
Cumulative preferred stock, $.0001 par value: 1,000,000 shares authorized; 400,100 shares issued and outstanding (in series)
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40,100
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40,100
|
||||||
Common stock, $.0001 par value: 100,000,000 shares authorized; 26,218,772 and 26,354,663 shares issued and outstanding at June 30, 2016 and December 31, 2016, respectively
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3
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3
|
||||||
Additional paid-in capital
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122,568
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121,187
|
||||||
Accumulated other comprehensive loss
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(14,129
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)
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(10,942
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)
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||||
Accumulated deficit
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(10,010
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)
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(15,926
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)
|
||||
Total General Finance Corporation stockholders' equity
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138,532
|
134,422
|
||||||
Equity of noncontrolling interests
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86,080
|
84,878
|
||||||
Total equity
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224,612
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219,300
|
||||||
Total liabilities and equity
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$
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673,574
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$
|
673,011
|
Quarter Ended December 31,
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Six Months Ended December 31,
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|||||||||||||||
2015
|
2016
|
2015
|
2016
|
|||||||||||||
Net income
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$
|
1,880
|
$
|
1,370
|
$
|
1,345
|
$
|
626
|
||||||||
Add (deduct) —
|
||||||||||||||||
Provision for income taxes
|
1,252
|
913
|
896
|
417
|
||||||||||||
Foreign currency exchange loss (gain) and other
|
611
|
(189
|
)
|
503
|
(94
|
)
|
||||||||||
Interest expense
|
4,965
|
5,016
|
9,980
|
9,847
|
||||||||||||
Interest income
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(20
|
)
|
(13
|
)
|
(37
|
)
|
(36
|
)
|
||||||||
Depreciation and amortization
|
9,436
|
10,086
|
18,722
|
19,787
|
||||||||||||
Share-based compensation expense
|
727
|
596
|
1,353
|
191
|
||||||||||||
Adjusted EBITDA
|
$
|
18,851
|
$
|
17,779
|
$
|
32,762
|
$
|
30,738
|
Quarter Ended December 31, 2015
|
Quarter Ended December 31, 2016
|
|||||||||||||||||||||||||||||||
Asia-Pacific
|
North America
|
Asia-Pacific
|
North America
|
|||||||||||||||||||||||||||||
Leasing
|
Leasing
|
Manufacturing
|
Corporate
|
Leasing
|
Leasing
|
Manufacturing
|
Corporate
|
|||||||||||||||||||||||||
Operating income (loss)
|
$
|
4,125
|
$
|
7,003
|
$
|
(1,351
|
)
|
$
|
(1,270
|
)
|
$
|
3,956
|
$
|
4,964
|
$
|
(733
|
)
|
$
|
(1,268
|
)
|
||||||||||||
Add -
|
||||||||||||||||||||||||||||||||
Depreciation and amortization
|
3,448
|
5,913
|
260
|
1
|
4,218
|
5,851
|
198
|
8
|
||||||||||||||||||||||||
Share-based compensation Xexpense
|
246
|
107
|
37
|
337
|
194
|
82
|
22
|
298
|
||||||||||||||||||||||||
Adjusted EBITDA
|
$
|
7,819
|
$
|
13,023
|
$
|
(1,054
|
)
|
$
|
(932
|
)
|
$
|
8,368
|
$
|
10,897
|
$
|
(513
|
)
|
$
|
(962
|
)
|
||||||||||||
Intercompany adjustments
|
$
|
(5
|
)
|
$
|
(11
|
)
|
Six Months Ended December 31, 2015
|
Six Months Ended December 31, 2016
|
|||||||||||||||||||||||||||||||
Asia-Pacific
|
North America
|
Asia-Pacific
|
North America
|
|||||||||||||||||||||||||||||
Leasing
|
Leasing
|
Manufacturing
|
Corporate
|
Leasing
|
Leasing
|
Manufacturing
|
Corporate
|
|||||||||||||||||||||||||
Operating income (loss)
|
$
|
6,821
|
$
|
10,789
|
$
|
(2,498
|
)
|
$
|
(2,811
|
)
|
$
|
6,819
|
$
|
7,570
|
$
|
(1,351
|
)
|
$
|
(2,603
|
)
|
||||||||||||
Add -
|
||||||||||||||||||||||||||||||||
Depreciation and amortization
|
6,919
|
11,649
|
526
|
1
|
8,026
|
11,732
|
396
|
10
|
||||||||||||||||||||||||
Share-based compensation Xexpense
|
377
|
219
|
74
|
683
|
(522
|
)
|
167
|
44
|
502
|
|||||||||||||||||||||||
Adjusted EBITDA
|
$
|
14,117
|
$
|
22,657
|
$
|
(1,898
|
)
|
$
|
(2,127
|
)
|
$
|
14,323
|
$
|
19,469
|
$
|
(911
|
)
|
$
|
(2,091
|
)
|
||||||||||||
Intercompany adjustments
|
$
|
13
|
$
|
(52
|
)
|
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