Investor Presentaiton
123
1)
2)
3)
Textainer Capital Allocation
Net cash generated for capital allocation
($ in 000s)
The fixed and long-term nature of both our leases portfolio and debt
service generates a stable level of excess cash, providing flexibility for
all three of our capital allocation priorities:
1)
2)
3)
Capex: We invest in containers when the expected returns are
accretive to the business. The short-lead time of container
manufacturing allows us to moderate capex based on demand,
participating only in profitable and attractive opportunities.
Leverage: We manage debt levels to ensure we maintain stable
and optimized access to financing and sufficient available
capacity for incremental ca pex opportunities.
Shareholder returns: We are committed to returning capital to
our common shareholders, by a combination of both our
quarterly common dividend and share buyback programs.
t
LTM
1Q23
annualized
X
Adjusted EBITDA (see reconciliation in Appendix)
$730,182
$667,940
Plus: Principal portion of finance leasesĀ³
+181,222
+184,088
Plus: NBV of container disposals
+140,828
+129,440
Minus: Interest expense (excluding non-cash amortization) and
preferred dividends
-173,780
-178,608
Minus: Current debt balance as of quarter end
Net cash available for capital allocation, net of debt service
-394,186
-394,186
$484,266
$408,674
Capital allocation alternatives (potential uses of net cash; the illustrative amounts
shown below for each alternative are mutually exclusive):
1) Capex potential using current leverage
Growth
Replacement 2,3
Total capex potential using current leverage
2) Incremental debt paydown in excess of required
repayments (decreasing current leverage)
$1,807,107
$1,442,490
$614,223
$600,880
$2,421,330
$2,043,370
$484,266
$408,674
$ (in 000's)
Capex (cash-basis, owned fleet) and debt load
$2,500,000
$2,000,000
Over the past 10 years, Textainer has
grown the owned fleet by a 7% CAGR
$1,500,000
$1,000,000
$500,000
$0
I CAPEX (owned fleet)
Net debt loan-to-value (1)
3) Shareholder returns
80%
$ (in 000's)
$250,000
78%
$200,000
76%
$150,000
74%
$100,000
72%
$50,000
70%
50
$0
Net debt loan-to-value is calculated as borrowings (net of cash) + manufacturer Payables, divided by the NBV of our owned fleet.
Replacement capex consists of depreciation expense, principal portion of finance lease billings, and NBV of container disposa ls.
Excludes non-recurring one-time principal payments.
Shareholder cash returns
Over the past 10 years, Textainer's cumulative common
dividends and buybacks represent 62% of its cumulative
adjusted net income for that period
Common share dividends
2017
2018
2019
2020
2021
Share buybacks
2022
1Q23
$484,266
$408,674
14View entire presentation