TAL Intl. posts 2Q adjusted net income of US$10.9 million

TAL International Group, a lessor of intermodal freight containers and chassis, has reported an adjusted pre-tax income for the second quarter ended June 30, 2009 of US$17.0 million, down from $26.6 million achieved in the same quarter a year earlier.

Leasing revenues for the second quarter amounted to $79.4 million, up slightly from the $77.9 million recorded in the second quarter of 2008. Adjusted EBITDA was $71.2 million for the quarter versus $76.1 million in the prior year period.

Adjusted net income, excluding gains on debt extinguishment and unrealized gains on interest rate swaps, was $10.9 million for the second quarter of 2009, down from $17.2 million for the same quarter last year.

Reported net income for the second quarter was $35.8 million, versus net income of $40.3 million, in the second quarter of 2008. The company said the difference between adjusted net income and the reported net income was primarily due to gains on debt extinguishment and unrealized gains on interest rate swaps. During the second quarter, long-term interest rates increased, resulting in a $24.5 million increase in the market value of TAL's swap contracts, a company statement said.

During the second quarter of 2009, the company repurchased a portion of its Asset Backed Series 2006-1 Term Notes and recorded a gain on debt extinguishment of $14.1 million.

Brian Sondey, President and CEO of TAL International, said: "While our market environment remains challenging and leasing demand weak, our equipment utilization, leasing revenue and cash flow continue to be protected by our strong lease portfolio. In addition, the downward pressure from excess container capacity has started to moderate. Very few new containers have been purchased since the summer of 2008 while container disposal volumes have remained solid."

Adjusted pre-tax income was $37.7 million in the first six months of 2009, down from $52.5 million in the first six months of 2008. Leasing revenues for the first half of the year amounted to $162.5 million, up from $155.3 million in the corresponding prior year period. Adjusted EBITDA was $145.8 million for the first six months of 2009 versus $150.0 million in the same period last year. Adjusted net income was $24.3 million for the first six months of 2009, down from $33.9 million in the prior year period.

(Source: www.schednet.com)