INTERPOOL INC
10-Q, EX-99.7, 2000-11-13
EQUIPMENT RENTAL & LEASING, NEC
Previous: INTERPOOL INC, 10-Q, EX-99.6, 2000-11-13
Next: ADVANCED FIBRE COMMUNICATIONS INC, 10-Q, 2000-11-13


Ex 99.7

FOR: INTERPOOL, INC.

FOR IMMEDIATE RELEASE

CONTACT: Mitchell I. Gordon
Chief Financial Officer
(212) 916-3284

Morgen-Walke Associates:
Gordon McCoun, Jennifer Angell
Media contacts: Shannon Stevens
(212) 850-5600

INTERPOOL, INC. REPORTS 3RD QUARTER 2000 RESULTS

- Net Income rises 83% to $11.1 Million, or $0.40 Per Diluted Share —Revenue Increases 21% to $69.1 Million -

PRINCETON, NJ, November 2, 2000 — Interpool, Inc. (NYSE:IPX) reported today net income for the third quarter ended September 30, 2000 of $11,080,000, or $0.40 per diluted share, compared with net income of $6,071,000, or $0.22 per diluted share, for the same period in 1999. Revenues during the third quarter of 2000 increased by 21% to $69,103,000, from $56,939,000 in the third quarter of 1999. Operating income was $30,089,000 in the quarter versus $19,884,000 for the same period last year.

Net income before non-recurring and extraordinary gains for the nine months of 2000 was $30,500,000, or $1.11 per diluted share, compared with net income of $21,053,000, or $0.74 per diluted share, for the same period in 1999. Revenues for the first nine months of 2000 were $196,348,000, as compared to $157,664,000 in the same period last year. Operating income in the period was $82,692,000 versus $63,701,000 reported last year.

Earnings for the nine months of 2000 included an after-tax gain of $840,000, or $0.03 per diluted share, related to the retirement of $11,200,000 in senior unsecured notes. Also, earnings for the nine months of 2000 included an after-tax gain of $660,000, or $0.02 per diluted share, resulting from a one-time cumulative effect of change in accounting principle as recently required by the Securities and Exchange Commission. Including these items, net income for the 2000 nine-month period was $32,000,000, or $1.16 per diluted share.

— MORE —



Interpool 3Q00 November 2, 2000 Page 2

Revenues and pre-tax profits from Interpool’s containers and chassis operating leases showed strong growth year-over-year due to increases in the size of the fleets, and continued strong fleet utilization. Operating lease revenues grew 27% from last year, while pre-tax profits from operating leases increased by 51%. The Company’s container operating lease fleet at the end of the third quarter was approximately 368,000 TEUs (twenty-foot-equivalent units), up from 277,000 TEUs at the end of the 1999 third quarter and up from 340,000 TEUs at the end of the 2000 second quarter. The chassis operating lease fleet at September 30th was 96,000, up from 80,000 last year and up from 93,000 at the end of the previous quarter. Utilization of the container fleet for the 2000 third quarter was 99%, which was consistent with the first and second quarters of this year, but up slightly from 98% in the 1999 third quarter. Chassis utilization remained level with the second quarter at 97%, but increased from 93% in the third quarter of 1999.

As previously disclosed on October 24, 2000, Interpool announced that it has completed the acquisition of the North American Intermodal Division of Transamerica Leasing, Inc., a subsidiary of Transamerica Finance Corporation and AEGON N.V. (NYSE:AEG), for approximately $672 million. In the transaction, Interpool acquired approximately 70,000 chassis, 23,000 rail trailers and 19,000 domestic containers, generating annual revenue of approximately $165 million. Following the acquisition, Interpool owns approximately 165,000 chassis, 26,000 rail trailers and 24,000 domestic containers.

Martin Tuchman, Chairman and Chief Executive Officer, commented: “We are extremely pleased with the strong performance of our container and chassis leasing business and the continued growth of our finance leases. The Company’s container business continues to experience strong demand in the Far East, and we have seen a modest improvement in prices since the end of 1999. Orders for new chassis equipment remain at high levels, and we continue to receive favorable rates for our chassis leases.”

Mr. Tuchman continued: “The acquisition of Transamerica’s North American intermodal business further strengthens our already successful chassis operations and positions us for continued future growth. With the acquisition, we substantially expand the customer base that utilizes our proprietary Poolstat chassis management software system to now include the rail industry. We believe this will benefit our existing customers by increasing the utilization of the Poolstat fleet and by growing the size of the equipment base available to meet their logistical needs. Additionally, the broadened management and customer service teams should result in a further strengthening of our customer service offerings.”

Mr. Tuchman concluded: “As we look into the fourth quarter and 2001, we are optimistic about the prospects for our business and the opportunities available in integrating the Transamerica assets and organization. Overall, we expect to continue double digit growth from a combination of internal expansion and from the recently acquired Transamerica businesses. Furthermore, we are dedicated to reducing our outstanding debt to more traditional levels.”

— MORE —




Interpool 3Q00 November 2, 2000 Page 3

Interpool, originally founded in 1968, is one of the world’s leading suppliers of equipment and services to the transportation industry. It is the largest lessor of intermodal container chassis in the United States and a world-leading lessor of cargo containers used in international trade. Interpool operates from 30 locations throughout the world.

This Press Release contains certain forward-looking statements regarding future circumstances. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements, including in particular the risks and uncertainties described in the company’s SEC filings. The company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof.

Note: This press release and other press releases and information can be viewed at the Company’s website at www.interpool.com.

— TABLES FOLLOW —



INTERPOOL, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands, except amounts per share)
(Unaudited)


Three Months
Ended
September 30,
Nine Months
Ended
September 30,
2000
1999
2000
1999
REVENUES   $69,103   $56,939   $196,348   $157,664  
LEASE OPERATING AND ADMINISTRATIVE EXPENSES   21,470   21,403   63,687   51,926  
DEPRECIATION AND AMORTIZATION OF LEASING EQUIPMENT   16,911   14,513   48,625   40,064  
OTHER (INCOME)/EXPENSE, NET   633   1,139   1,344   1,973  

EARNINGS BEFORE INTEREST AND TAXES   30,089   19,884   82,692   63,701  
INTEREST EXPENSE, NET   17,559   13,163   46,842   40,648  

INCOME BEFORE TAXES, CHANGE IN ACCOUNTING PRINCIPLE  
   AND EXTRAORDINARY GAIN   12,530   6,721   35,850   23,053  
PROVISION FOR INCOME TAXES   1,450   650   5,350   2,000  

INCOME BEFORE CHANGE IN ACCOUNTING PRINCIPLE  
   AND EXTRAORDINARY GAIN   $11,080   $6,071   $30,500   $21,053  
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE,  
   NET OF APPLICABLE TAXES OF $440 (1)       660    
EXTRAORDINARY GAIN ON RETIREMENT OF DEBT,  
   NET OF APPLICABLE TAXES OF $560 (2)       840    

NET INCOME   $11,080   $6,071   $32,000   $21,053  

INCOME PER SHARE BEFORE CUMULATIVE EFFECT OF CHANGE  
IN ACCOUNTING PRINCIPLE AND EXTRAORDINARY GAIN:  
        BASIC   $0.40   $0.22   $1.11   $0.76  
        DILUTED   $0.40   $0.22   $1.11   $0.74  
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE (1):  
        BASIC   N/A   N/A   $0.02   N/A  
        DILUTED   N/A   N/A   $0.02   N/A  
EXTRAORDINARY GAIN ON RETIREMENT OF DEBT (2):  
        BASIC   N/A   N/A   $0.03   N/A  
        DILUTED   N/A   N/A   $0.03   N/A  
NET INCOME PER SHARE:  
        BASIC   $0.40   $0.22   $1.17   $0.76  
        DILUTED   $0.40   $0.22   $1.16   $0.74  
WEIGHTED AVERAGE SHARES OUTSTANDING:  
        BASIC   27,421   27,580   27,421   27,574  
        DILUTED   27,945   27,900   27,596   28,458  
(3) Represents a change in the Company’s accounting for its maintenance and repairs expense from an accrual to cash basis, in accordance with the recent Securities and Exchange Commission requirement.

(4) Represents gain on retirement of $8.2 million face value of Interpool, Inc. 6-5/8% Notes due March 1, 2003 and $3.0 million face value of Interpool, Inc. 7.35% Notes due August 1, 2007.

— TABLES CONTINUE —



INTERPOOL, INC.
CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)

September 30,
2000

December 31,
1999

ASSETS      
     Cash and short-term investments and marketable securities   $352,164   $207,626  
     Accounts and notes receivable, net   36,613   31,837  
     Net investment in direct financing leases   185,815   164,394  
     Other receivables, net   84,154   52,437  
     Revenue producing equipment, net   948,451   876,067  
     Other assets   119,205   110,898  

TOTAL ASSETS   $1,726,402   $1,443,259  

LIABILITIES AND STOCKHOLDERS’ EQUITY  
     Accounts payable and accrued expenses   $71,811   $47,907  
     Income taxes   23,632   18,995  
     Deferred income   550   618  
     Debt and capital lease obligations   1,222,676   998,228  
     Capital securities   75,000   75,000  
     Minority interest   1,858   1,144  
     Stockholders’ equity   330,875   301,367  

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $1,726,402   $1,443,259  

INTERPOOL, INC.
BUSINESS OPERATIONS BREAKDOWN
(In thousands)
(Unaudited)

REVENUES
PRETAX
PROFIT/(LOSS)

Three Months Ended
September 30,
Three Months Ended
September 30,
2000
1999
2000
1999
OPERATING LEASE BUSINESS   $52,789   $41,448   $14,924   $9,909  
FINANCE LEASE BUSINESS   4,465   2,942   1,257   854  
OTHER OPERATIONS   11,562   12,425   (604 ) (765 )
CORPORATE/INVESTMENT DIVISION   5,272   2,645   (3,047 ) (3,277 )



###



© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission