TAL International Q4 and Full Year Report 2013

TAL International Group, Inc. Reports Fourth Quarter and Full Year 2013 Results and Declares $0.72 Quarterly Dividend

• TAL reported Adjusted pre-tax income of $6.41 per share for the year ending December 31, 2013, an increase of 6.0% from 2012. TAL reported leasing revenues of $567.4 million for the year ending December 31, 2013, an increase of 8.1% from 2012.

• TAL reported Adjusted pre-tax income of $1.52 per fully diluted common share for the fourth quarter of 2013, a decrease of 5.0% from the fourth quarter of 2012. TAL reported leasing revenues of $146.9 million for the fourth quarter of 2013, an increase of 5.8% from the fourth quarter of 2012.

• TAL continues to achieve outstanding operational performance. Utilization averaged 97.0% for the fourth quarter of 2013, and TAL purchased over $640 million of new and sale-leaseback containers for delivery in 2013.

• TAL announced a $0.02 increase in its quarterly dividend to $0.72 per share payable on March 24, 2014 to shareholders of record as of March 3, 2014.

 Outlook

• Mr. Sondey “Most forecasters expect global containerized trade growth to remain relatively low in 2014, especially when compared to our industry’s long-term historical growth rate. However, our leasing activity for January was stronger than expected, with a solid level of deal activity and positive movement in new container prices and lease rates. It is not yet clear whether January’s good performance was the result of temporary factors, such as an early Lunar New Year, or the first indication that trade growth may surprise to the upside in 2014.” 

• “The first quarter usually represents our weakest quarter of the year because it is typically the slow season for our dry container product line. While lease activity has so far been stronger than expected, we would need to see activity remain unusually strong to fully overcome the typical seasonal drag. In addition, the first quarter also has the fewest number of days, leading to reduced per diem revenue. We also expect our first quarter results to continue to be impacted by the ongoing gradual normalization of our disposal gains. As a result, we expect our adjusted pre-tax income to decrease from the fourth quarter of 2013 to the first quarter of 2014.”

• “After the first quarter, we expect improved seasonality and ongoing fleet growth to lead to sequential growth in our profitability through the rest of 2014. For the full year, we believe it will be difficult for our fleet growth to fully overcome the impact of normalizing disposal gains, and we expect our adjusted pre-tax income to be down from our record year in 2013. Nonetheless, we expect our operating and financial performance to remain at a high level in 2014.” 

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TAL Q4-2013
  
     

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