News
First quarter update
TRENCOR LIMITED
(Incorporated in the Republic of South Africa)
(Registration No 1955/002869/06)
Share Code: TRE
ISIN: ZAE000007506
(“Trencor”)
FIRST QUARTER UPDATE
Shareholders in Trencor are advised that Textainer Group Holdings Limited (NYSE: TGH), in which Trencor has a 48,2% (31 March 2013: 48,5%) beneficiary interest, has announced net profit attributable to its shareholders in US GAAP of US$59,7 million for the three months ended 31 March 2014 compared with US$48,3 million for the same period in 2013. The 2014 profit included a one-time US$22,7 million income tax benefit following the completion of an IRS tax examination. 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 2014 was US$40,2 million, including a US$3,1 million income tax benefit referred to above (same period 2013: US$50,8 million). Trencor’s earnings for the quarter ended 31 March 2014 were as follows:
| 3 months ended 31 March |
Year ended 31 December |
||
| 2014 | 2013 | 2013 | |
| Cents per share Unaudited | Cents per share Unaudited | Cents per share Audited | |
| HEADLINE EARNINGS | 135,0 | 150,6 | 792,6 |
| Deduct: Unrealised foreign exchange translation gains |
(3,8) | (29,1) | (64,7) |
| Gain on modification of debt terms | – | – | (97,2) |
| ADJUSTED HEADLINE EARNINGS | 131,2 | 121,5 | 630,7 |
| SA rand to US dollar: | |||
| – Period-end rate of exchange | R10,58 | R9,25 | R10,46 |
| – Average rate of exchange for period | R10,79 | R8,91 | R9,67 |
COMMENTS
- Adjusted headline earnings exclude, inter alia, the effect of net unrealised foreign exchange gains and losses arising on the translation of the long-term receivables and related valuation adjustment. TEXTAINER:
- Average fleet utilisation was 94,4% for the first quarter of 2014 (95,7% for the first quarter 2013). Current utilisation is 94,7%;
- Committed to acquire 147 000 TEU of new and used containers costing US$284 million during the quarter, including the purchase of 30 000 TEU from the managed fleet at a cost of US$35 million;
- After the close of the quarter, announced a US$500 million term loan to refinance the debt in wholly-owned subsidiary Textainer Marine Containers Limited, which will further lower funding costs and free up cash to be used for additional container purchases and other uses;
- Declared a dividend of US$0,47 per share in respect of the first quarter of 2014. 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 2014
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)