Bermuda | 001-37827 | 98-1276572 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Triton International Limited | |||
Dated: August 11, 2016 | By: | /s/ John Burns | |
Name: | John Burns | ||
Title: | Senior Vice President and Chief Financial Officer |
• | On July 12, 2016, TCIL and TAL completed their combination to form Triton International, the world’s largest, most capable and most efficient lessor of intermodal freight containers. |
• | On August 11, 2016, Triton announced a quarterly dividend of $0.45 per share payable on September 22, 2016 to shareholders of record as of September 8, 2016. |
• | Combined Adjusted pre-tax income for TCIL and TAL was $18.4 million for the second quarter of 2016, a decrease of 77.4% from the second quarter of 2015. |
• | Combined leasing revenues for TCIL and TAL were $299.6 million for the second quarter of 2016, a decrease of 9.2% from the second quarter of 2015. |
• | Combined equipment utilization averaged 93.3% for the second quarter of 2016. |
• | Through August 11, 2016, the combined companies have invested approximately $555 million in new and sale-leaseback containers for delivery in 2016. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||
2016 | 2015 | % Change | 2016 | 2015 | % Change | |
Adjusted pre-tax income(1) | $18.4 | $81.5 | (77.4%) | $50.7 | $174.2 | (70.9%) |
Leasing revenues | $299.6 | $329.8 | (9.2%) | $611.9 | $658.9 | (7.1%) |
Adjusted EBITDA(1) | $240.7 | $294.0 | (18.1%) | $493.2 | $592.9 | (16.8%) |
Adjusted net income(1) | $16.5 | $65.5 | (74.8%) | $42.6 | $142.2 | (70.0%) |
Net income | $4.2 | $62.9 | (93.3%) | $19.4 | $129.5 | (85.0%) |
Quarter Ended | ||||||||||||||
June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | ||||||||||
Average Utilization | 93.3 | % | 94.0 | % | 94.8 | % | 96.2 | % | 97.2 | % |
June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | ||||||||||
Ending Utilization | 93.7 | % | 93.5 | % | 94.4 | % | 95.5 | % | 96.9 | % |
Equipment Fleet in Units | Equipment Fleet in TEU | ||||||||||||||||
June 30, 2016 | December 31, 2015 | June 30, 2015 | June 30, 2016 | December 31, 2015 | June 30, 2015 | ||||||||||||
Dry | 2,586,100 | 2,632,257 | 2,593,791 | 4,154,335 | 4,217,703 | 4,163,511 | |||||||||||
Refrigerated | 200,943 | 198,292 | 194,857 | 384,600 | 379,134 | 372,271 | |||||||||||
Special | 86,100 | 88,148 | 88,227 | 150,603 | 154,137 | 155,008 | |||||||||||
Tank | 11,715 | 11,243 | 9,852 | 11,715 | 11,243 | 9,852 | |||||||||||
Chassis | 21,784 | 21,216 | 20,293 | 39,355 | 38,210 | 36,325 | |||||||||||
Equipment leasing fleet | 2,906,642 | 2,951,156 | 2,907,020 | 4,740,608 | 4,800,427 | 4,736,967 | |||||||||||
Equipment trading fleet | 18,344 | 21,135 | 28,256 | 30,402 | 35,989 | 46,614 | |||||||||||
Total | 2,924,986 | 2,972,291 | 2,935,276 | 4,771,010 | 4,836,416 | 4,783,581 |
Equipment Fleet in CEU | ||||||||
June 30, 2016 | December 31, 2015 | June 30, 2015 | ||||||
Operating leases | 5,848,136 | 5,855,833 | 5,750,341 | |||||
Finance leases | 235,806 | 252,229 | 246,907 | |||||
Equipment trading fleet | 84,832 | 107,080 | 119,226 | |||||
Total | 6,168,774 | 6,215,142 | 6,116,474 |
June 30, 2016 | December 31, 2015 | ||||||
ASSETS: | |||||||
Prepaid assets | $ | 8 | $ | — | |||
Total current assets | 8 | — | |||||
Total assets | $ | 8 | $ | — | |||
LIABILITIES AND SHAREHOLDER'S EQUITY: | |||||||
Accounts payable | — | 11 | |||||
Total current liabilities | — | 11 | |||||
Total liabilities | $ | — | $ | 11 | |||
Shareholder's equity: | |||||||
Common shares, $0.01 par value, 100 shares authorized, and 100 shares issued respectively | — | — | |||||
Receivable from TCIL common shares | — | — | |||||
Additional paid-in capital | 44 | — | |||||
Accumulated (deficit) | (36 | ) | (11 | ) | |||
Total shareholder's equity | 8 | (11 | ) | ||||
Total liabilities and shareholder's equity | $ | 8 | $ | — |
Three Months Ended June 30, 2016 | Six Months Ended June 30, 2016 | ||||||
Revenues: | |||||||
Revenues | $ | — | $ | — | |||
Total revenues | — | — | |||||
Operating expenses: | |||||||
Administrative expenses | 21 | 25 | |||||
Transaction and other non-recurring costs | — | — | |||||
Operating expenses | — | — | |||||
Total operating expenses | 21 | 25 | |||||
Operating (loss) | (21 | ) | (25 | ) | |||
Other expenses: | |||||||
Other expenses | — | — | |||||
Total other expenses | — | — | |||||
(Loss) before income taxes | (21 | ) | (25 | ) | |||
(Loss) tax expense | — | — | |||||
Net (loss) | $ | (21 | ) | $ | (25 | ) | |
Net (loss) per common share—Basic | $ | (210 | ) | $ | (250 | ) | |
Net (loss) per common share—Diluted | $ | (210 | ) | $ | (250 | ) | |
Cash dividends paid per common share | $ | — | $ | — | |||
Weighted average number of common shares outstanding—Basic | 100 | 100 | |||||
Dilutive share options and restricted shares | — | — | |||||
Weighted average number of common shares outstanding—Diluted | 100 | 100 |
Six Months Ended June 30, 2016 | |||
Cash flows from operating activities: | |||
Net loss | $ | (25 | ) |
Adjustments to reconcile net loss: | |||
Expenses paid by TCIL on behalf of Triton | 44 | ||
Changes in assets and liabilities: | |||
Increase in prepaid assets | (8 | ) | |
Decrease in accounts payable | (11 | ) | |
Net cash provided by operating activities | — | ||
Cash flows from investing activities: | |||
Net cash provided by investing activities | — | ||
Cash flows from financing activities: | |||
Net cash provided by financing activities | — | ||
Net increase in unrestricted cash and cash equivalents | $ | — | |
Cash and cash equivalents, beginning of period | — | ||
Cash and cash equivalents, end of period | $ | — | |
Supplemental non-cash activities: | |||
Capital contribution from TCIL in the form of expenses paid on behalf of Triton | $ | 44 |
June 30, 2016 | December 31, 2015 | ||||||
ASSETS: | |||||||
Leasing equipment, net of accumulated depreciation and allowances of $1,651,513 and $1,566,963 | $ | 4,189,723 | $ | 4,362,043 | |||
Net investment in finance leases | 64,664 | 68,107 | |||||
Revenue earning assets | 4,254,387 | 4,430,150 | |||||
Unrestricted cash and cash equivalents | 89,788 | 56,689 | |||||
Restricted cash | 20,918 | 22,575 | |||||
Accounts receivable, net of allowances of $7,143 and $8,297 | 127,346 | 127,676 | |||||
Other assets | 36,126 | 37,911 | |||||
Fair value of derivative instruments | — | 2,153 | |||||
Total assets | $ | 4,528,565 | $ | 4,677,154 | |||
LIABILITIES AND EQUITY: | |||||||
Equipment purchases payable | $ | 1,232 | $ | 12,128 | |||
Fair value of derivative instruments | 6,833 | 257 | |||||
Accounts payable and other accrued expenses | 115,934 | 120,033 | |||||
Debt, net of unamortized deferred financing costs of $21,279 and $19,024 | 3,021,044 | 3,166,903 | |||||
Total liabilities | 3,145,043 | 3,299,321 | |||||
Equity: | |||||||
Class A common shares, $0.01 par value; 294,000,000 authorized, 44,537,630 and 44,535,732 issued and outstanding | 445 | 445 | |||||
Class B common shares, $0.01 par value; 6,000,000 authorized, issued and outstanding | 60 | 60 | |||||
Additional paid-in capital | 177,054 | 176,088 | |||||
Accumulated earnings | 1,059,318 | 1,044,402 | |||||
Accumulated other comprehensive (loss) | (3,810 | ) | (3,666 | ) | |||
Noncontrolling interests | 150,455 | 160,504 | |||||
Total equity | 1,383,522 | 1,377,833 | |||||
Total liabilities and equity | $ | 4,528,565 | $ | 4,677,154 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Leasing revenues: | |||||||||||||||
Operating leases | $ | 156,367 | $ | 176,986 | $ | 317,362 | $ | 355,137 | |||||||
Finance leases | 1,966 | 2,003 | 3,996 | 3,983 | |||||||||||
Total leasing revenues | 158,333 | 178,989 | 321,358 | 359,120 | |||||||||||
(Loss) gain on sale of leasing equipment, net | (1,930 | ) | 1,077 | (3,767 | ) | 6,325 | |||||||||
Operating expenses: | |||||||||||||||
Depreciation and amortization | 81,132 | 71,040 | 160,276 | 140,120 | |||||||||||
Direct operating expenses | 12,015 | 13,506 | 26,482 | 26,122 | |||||||||||
Administrative expenses | 13,166 | 14,367 | 27,679 | 29,730 | |||||||||||
Transaction and other non-recurring costs | 3,537 | 4,173 | 6,948 | 9,956 | |||||||||||
(Reversal of) provision for doubtful accounts | (52 | ) | 84 | (171 | ) | (2,132 | ) | ||||||||
Total operating expenses | 109,798 | 103,170 | 221,214 | 203,796 | |||||||||||
Operating income | 46,605 | 76,896 | 96,377 | 161,649 | |||||||||||
Other expenses: | |||||||||||||||
Interest and debt expense | 33,491 | 35,929 | 67,189 | 70,466 | |||||||||||
Realized loss on derivative instruments | 749 | 1,438 | 1,403 | 3,013 | |||||||||||
Write-off of deferred financing costs | 141 | — | 141 | — | |||||||||||
Loss (gain) on interest rate swaps, net | 4,133 | (2,059 | ) | 8,729 | 1,674 | ||||||||||
Other (income) expense, net | (756 | ) | 261 | (989 | ) | (265 | ) | ||||||||
Total other expenses | 37,758 | 35,569 | 76,473 | 74,888 | |||||||||||
Income before income taxes | 8,847 | 41,327 | 19,904 | 86,761 | |||||||||||
Income tax expense | 1,192 | 1,346 | 2,184 | 2,944 | |||||||||||
Net income | $ | 7,655 | $ | 39,981 | $ | 17,720 | $ | 83,817 | |||||||
Less: income attributable to noncontrolling interest | $ | 1,481 | $ | 3,740 | $ | 2,804 | $ | 6,706 | |||||||
Net income attributable to shareholders | $ | 6,174 | $ | 36,241 | $ | 14,916 | $ | 77,111 |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 17,720 | $ | 83,817 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 160,276 | 140,120 | |||||
Amortization of deferred financing costs | 2,672 | 2,851 | |||||
Loss (gain) on sale of leasing equipment, net | 3,767 | (6,325 | ) | ||||
Loss on interest rate swaps, net | 8,729 | 1,674 | |||||
Write-off of deferred financing costs | 141 | — | |||||
Stock compensation charge | 2,288 | 8,102 | |||||
Changes in operating assets and liabilities: | |||||||
Other changes in operating assets and liabilities | (6,308 | ) | (1,325 | ) | |||
Net cash provided by operating activities | 189,285 | 228,914 | |||||
Cash flows from investing activities: | |||||||
Purchases of leasing equipment and investments in finance leases | (64,098 | ) | (302,853 | ) | |||
Proceeds from sale of equipment, net of selling costs | 60,820 | 89,824 | |||||
Cash collections on finance lease receivables, net of income earned | 7,911 | 6,578 | |||||
Other | (574 | ) | (1,562 | ) | |||
Net cash provided by (used in) investing activities | 4,059 | (208,013 | ) | ||||
Cash flows from financing activities: | |||||||
Redemption of common shares | (376 | ) | — | ||||
Financing fees paid under debt facilities | (5,068 | ) | (2,972 | ) | |||
Borrowings under debt facilities | 44,700 | 535,000 | |||||
Payments under debt facilities and capital lease obligations | (188,304 | ) | (535,061 | ) | |||
Decrease in restricted cash | 1,656 | 3,873 | |||||
Distributions to noncontrolling interests | (12,853 | ) | (26,772 | ) | |||
Net cash (used in) provided by financing activities | (160,245 | ) | (25,932 | ) | |||
Net increase (decrease) in unrestricted cash and cash equivalents | $ | 33,099 | $ | (5,031 | ) | ||
Unrestricted cash and cash equivalents, beginning of period | 56,689 | 65,607 | |||||
Unrestricted cash and cash equivalents, end of period | $ | 89,788 | $ | 60,576 | |||
Supplemental non-cash investing activities: | |||||||
Amounts incurred, but not yet paid, for container rental equipment purchased | $ | 1,232 | $ | 16,889 |
June 30, 2016 | December 31, 2015 | ||||||
ASSETS: | |||||||
Leasing equipment, net of accumulated depreciation and allowances of $1,289,204 and $1,218,826 | $ | 3,813,218 | $ | 3,908,292 | |||
Net investment in finance leases, net of allowances of $671 and $805 | 159,693 | 177,737 | |||||
Equipment held for sale | 80,682 | 74,899 | |||||
Revenue earning assets | 4,053,593 | 4,160,928 | |||||
Unrestricted cash and cash equivalents | 54,331 | 58,907 | |||||
Restricted cash | 28,358 | 30,302 | |||||
Accounts receivable, net of allowances of $1,209 and $1,314 | 91,358 | 95,709 | |||||
Goodwill | 74,523 | 74,523 | |||||
Other assets | 15,091 | 13,620 | |||||
Fair value of derivative instruments | — | 87 | |||||
Total assets | $ | 4,317,254 | $ | 4,434,076 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||||
Equipment purchases payable | $ | 8,304 | $ | 20,009 | |||
Fair value of derivative instruments | 67,191 | 20,348 | |||||
Accounts payable and other accrued expenses | 53,480 | 56,096 | |||||
Net deferred income tax liability | 447,992 | 456,123 | |||||
Debt, net of unamortized deferred financing costs of $23,720 and $25,245 | 3,146,494 | 3,216,488 | |||||
Total liabilities | 3,723,461 | 3,769,064 | |||||
Stockholders' equity: | |||||||
Preferred stock, $0.001 par value, 500,000 shares authorized, none issued | — | — | |||||
Common stock, $0.001 par value, 100,000,000 shares authorized, 37,307,134 and 37,167,134 shares issued respectively | 37 | 37 | |||||
Treasury stock, at cost, 3,911,843 shares | (75,310 | ) | (75,310 | ) | |||
Additional paid-in capital | 513,162 | 511,297 | |||||
Accumulated earnings | 204,568 | 248,183 | |||||
Accumulated other comprehensive (loss) | (48,664 | ) | (19,195 | ) | |||
Total stockholders' equity | 593,793 | 665,012 | |||||
Total liabilities and stockholders' equity | $ | 4,317,254 | $ | 4,434,076 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Leasing revenues: | |||||||||||||||
Operating leases | $ | 138,137 | $ | 146,569 | $ | 283,035 | $ | 291,137 | |||||||
Finance leases | 2,926 | 3,887 | 6,033 | 7,911 | |||||||||||
Other revenues | 210 | 382 | 1,428 | 765 | |||||||||||
Total leasing revenues | 141,273 | 150,838 | 290,496 | 299,813 | |||||||||||
Equipment trading revenues | 11,463 | 16,478 | 22,755 | 33,323 | |||||||||||
Equipment trading expenses | (11,471 | ) | (14,957 | ) | (22,736 | ) | (30,388 | ) | |||||||
Trading margin | (8 | ) | 1,521 | 19 | 2,935 | ||||||||||
(Loss) on sale of leasing equipment, net | (15,508 | ) | (660 | ) | (29,438 | ) | (2,109 | ) | |||||||
Operating expenses: | |||||||||||||||
Depreciation and amortization | 63,157 | 60,021 | 126,383 | 118,405 | |||||||||||
Direct operating expenses | 19,576 | 10,011 | 37,535 | 18,833 | |||||||||||
Administrative expenses | 10,855 | 10,467 | 21,568 | 22,249 | |||||||||||
Transaction and other non-recurring costs | 2,295 | 900 | 4,534 | 1,100 | |||||||||||
Provision (reversal) for doubtful accounts | 78 | (165 | ) | (231 | ) | (188 | ) | ||||||||
Total operating expenses | 95,961 | 81,234 | 189,789 | 160,399 | |||||||||||
Operating income | 29,796 | 70,465 | 71,288 | 140,240 | |||||||||||
Other expenses: | |||||||||||||||
Interest and debt expense | 28,874 | 29,602 | 58,025 | 58,845 | |||||||||||
Write-off of deferred financing costs | 173 | — | 536 | — | |||||||||||
Loss (gain) on interest rate swaps, net | 135 | (364 | ) | 948 | 352 | ||||||||||
Total other expenses | 29,182 | 29,238 | 59,509 | 59,197 | |||||||||||
Income before income taxes | 614 | 41,227 | 11,779 | 81,043 | |||||||||||
Income tax expense | 2,584 | 14,557 | 7,327 | 28,616 | |||||||||||
Net (loss) income | $ | (1,970 | ) | $ | 26,670 | $ | 4,452 | $ | 52,427 |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 4,452 | $ | 52,427 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 126,383 | 118,405 | |||||
Amortization of deferred financing costs | 3,351 | 3,941 | |||||
Amortization of net loss on terminated derivative instruments designated as cash flow hedges | 1,144 | 1,355 | |||||
Amortization of lease intangibles | 3,580 | 1,047 | |||||
Loss on sale of leasing equipment, net | 29,438 | 2,109 | |||||
Loss on interest rate swaps, net | 948 | 352 | |||||
Write-off of deferred financing costs | 536 | — | |||||
Deferred income taxes | 7,327 | 28,616 | |||||
Stock compensation charge | 2,177 | 3,449 | |||||
Changes in operating assets and liabilities: | |||||||
Net equipment sold (purchased) for resale activity | (483 | ) | (4,809 | ) | |||
Other changes in operating assets and liabilities | (624 | ) | (3,759 | ) | |||
Net cash provided by operating activities | 178,229 | 203,133 | |||||
Cash flows from investing activities: | |||||||
Purchases of leasing equipment and investments in finance leases | (145,667 | ) | (428,963 | ) | |||
Proceeds from sale of equipment, net of selling costs | 61,301 | 66,026 | |||||
Cash collections on finance lease receivables, net of income earned | 21,325 | 21,289 | |||||
Other | (296 | ) | 74 | ||||
Net cash (used in) investing activities | (63,337 | ) | (341,574 | ) | |||
Cash flows from financing activities: | |||||||
Purchases of treasury stock | — | (4,446 | ) | ||||
Stock options exercised and stock related activity | — | 38 | |||||
Financing fees paid under debt facilities | (2,362 | ) | (717 | ) | |||
Borrowings under debt facilities | 190,001 | 365,000 | |||||
Payments under debt facilities and capital lease obligations | (261,555 | ) | (182,251 | ) | |||
Decrease in restricted cash | 1,944 | 1,159 | |||||
Common stock dividends paid | (47,496 | ) | (47,313 | ) | |||
Net cash (used in) provided by financing activities | (119,468 | ) | 131,470 | ||||
Net (decrease) in unrestricted cash and cash equivalents | $ | (4,576 | ) | $ | (6,971 | ) | |
Unrestricted cash and cash equivalents, beginning of period | 58,907 | 79,132 | |||||
Unrestricted cash and cash equivalents, end of period | $ | 54,331 | $ | 72,161 | |||
Supplemental non-cash investing activities: | |||||||
Amounts incurred, but not yet paid, for container rental equipment purchased | $ | 8,304 | $ | 34,670 |
• | are widely used by securities analysts and investors to measure a company’s operating performance and available liquidity to service debt and fund investments without regard to debt or capital structure, income tax rates and depreciation policy estimates, which can vary substantially from company to company; |
• | help investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our capital structure, our asset base and certain non-routine events which we do not expect to occur in the future; and |
• | are used by our management for various purposes, including as measures of operating performance and liquidity, to assist in comparing performance from period to period on a consistent basis, in presentations to our board of directors concerning our financial performance and as a basis for strategic planning and forecasting. |
TRITON CONTAINER INTERNATIONAL LIMITED Non-GAAP Reconciliations of Adjusted Pre-tax Income and Adjusted Net Income (Dollars in Thousands) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Income before income taxes | $ | 8,847 | $ | 41,327 | $ | 19,904 | $ | 86,761 | |||||||
Add: | |||||||||||||||
Write-off of deferred financing costs | 141 | — | 141 | — | |||||||||||
Net loss (gain) on interest rate swaps | 4,133 | (2,059 | ) | 8,729 | 1,674 | ||||||||||
Transaction and other non-recurring costs | 3,537 | 4,173 | 6,948 | 9,956 | |||||||||||
Less: income attributable to noncontrolling interest | 1,481 | 3,740 | 2,804 | 6,706 | |||||||||||
Adjusted pre-tax income | $ | 15,177 | $ | 39,701 | $ | 32,918 | $ | 91,685 | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income attributable to shareholders | $ | 6,174 | $ | 36,241 | $ | 14,916 | $ | 77,111 | |||||||
Add: | |||||||||||||||
Write-off of deferred financing costs, net of tax | 137 | — | 137 | — | |||||||||||
Net loss (gain) on interest rate swaps, net of tax | 4,009 | (1,997 | ) | 8,467 | 1,624 | ||||||||||
Transaction and other non-recurring costs, net of tax | 3,431 | 4,048 | 6,740 | 9,657 | |||||||||||
Foreign income and withholding tax adjustments | 753 | 168 | 1,213 | 447 | |||||||||||
Adjusted net income | $ | 14,504 | $ | 38,460 | $ | 31,473 | $ | 88,839 |
TRITON CONTAINER INTERNATIONAL LIMITED Non-GAAP Reconciliations of Operating Cash Flows to Adjusted EBITDA (Dollars in Thousands) | |||||||
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
Net cash provided by operating activities | $ | 189,285 | $ | 228,914 | |||
Non-cash expenses | (5,580 | ) | (14,715 | ) | |||
(Loss) gain on sale of equipment, net | (3,767 | ) | 6,325 | ||||
Changes in operating assets & liabilities | 6,308 | 1,325 | |||||
Interest expense | 67,189 | 70,466 | |||||
Realized loss on derivative instruments | 1,403 | 3,013 | |||||
Principal payments on finance leases | 7,911 | 6,578 | |||||
Transaction and other non-recurring costs | 6,948 | 9,956 | |||||
Adjusted EBITDA | $ | 269,697 | $ | 311,862 |
TAL INTERNATIONAL GROUP, INC. Non-GAAP Reconciliations of Adjusted Pre-tax Income and Adjusted Net Income (Dollars in Thousands) | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Income before income taxes | $ | 614 | $ | 41,227 | $ | 11,779 | $ | 81,043 | ||||
Add: | ||||||||||||
Write-off of deferred financing costs | 173 | — | 536 | — | ||||||||
Net loss (gain) on interest rate swaps | 135 | (364 | ) | 948 | 352 | |||||||
Transaction and other non-recurring costs | 2,295 | 900 | 4,534 | 1,100 | ||||||||
Adjusted pre-tax income | $ | 3,217 | $ | 41,763 | $ | 17,797 | $ | 82,495 | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Net (loss) income | $ | (1,970 | ) | $ | 26,670 | $ | 4,452 | $ | 52,427 | |||
Add: | ||||||||||||
Write-off of deferred financing costs, net of tax | 126 | — | 335 | — | ||||||||
Net loss (gain) on interest rate swaps, net of tax | 125 | (235 | ) | 593 | 228 | |||||||
Transaction and other non-recurring costs, net of tax | 1,548 | 581 | 2,836 | 711 | ||||||||
Stock compensation tax adjustment | — | — | 732 | — | ||||||||
Tax adjustment related to non-deductibility of certain transaction and other non-recurring costs | 2,182 | — | 2,182 | — | ||||||||
Adjusted net income | $ | 2,011 | $ | 27,016 | $ | 11,130 | $ | 53,366 |
TAL INTERNATIONAL GROUP, INC. Non-GAAP Reconciliations of Operating Cash Flows to Adjusted EBITDA (Dollars in Thousands) | ||||||
Six Months Ended June 30, | ||||||
2016 | 2015 | |||||
Net cash provided by operating activities | $ | 178,229 | $ | 203,133 | ||
Non-cash expenses | (10,252 | ) | (9,792 | ) | ||
(Loss) on sale of equipment, net | (29,438 | ) | (2,109 | ) | ||
Changes in operating assets & liabilities | 1,107 | 8,568 | ||||
Interest expense | 58,025 | 58,845 | ||||
Principal payments on finance leases | 21,325 | 21,289 | ||||
Transaction and other non-recurring costs | 4,534 | 1,100 | ||||
Adjusted EBITDA | $ | 223,530 | $ | 281,034 |