Interpool (NYSE:IPX)
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Interpool, Inc. (NYSE: IPX) announced today that the company’s
revenues for the quarter ended March 31, 2007 were $92.0 million and
that net income for the quarter was $17.7 million.
Martin Tuchman, Chairman and Chief Executive Officer, said, "We are very
pleased with our first quarter results. We saw significant benefits from
the growth in our chassis business that occurred during the second half
of 2006. We are also very active on the container side and wrote a
considerable amount of new business during the first quarter, a time
that is normally seasonally slow.”
Revenues of $92.0 million for the first quarter compared with revenues
of $103.0 million for the same period in 2006. Revenues for the first
quarter of 2006 would have been $71.5 million excluding the revenues
related to the container portfolio sold on March 31, 2006 and to the
company’s investment in Container Applications
International, a previously consolidated subsidiary. The Company sold
its equity interest in CAI on October 1, 2006.
Net income of $17.7 million ($0.44 per diluted share) for the first
quarter of 2007 compared with $53.3 million of net income for the first
quarter of 2006 ($1.65 per diluted share). Net income for the first
quarter of 2007 included $2.6 million of after-tax revenue related to
the early termination of a lease with one customer, $1.1 million
after-tax from the favorable settlement of a state tax review, and $0.8
million after-tax from the receipt of funds held in escrow since the
sale of a non-transportation investment during 2005. Excluding those
items, net income for the first quarter of 2007 would have been $13.2
million.
Net income for the first quarter of 2006 included after-tax income of
$10.7 million associated with the container portfolio sold on March 29,
2006, a gain on that sale of $59.3 million, net income of $0.9 million
from Interpool’s investment in CAI, non-cash,
after-tax expense of $6.7 million from an impairment charge related to
the conversion of one customer’s operating
leases to direct financing leases, and $5.2 million in non-cash,
after-tax expense from an adjustment to the fair value of warrants.
Excluding these items, the company would have reported a net loss for
the first quarter of 2006 of $5.7 million.
After considering the items described above, the improvement from a net
loss of $5.7 million in 2006 to net income of $13.2 million in 2007 was
primarily attributable to increased revenues in both the chassis and
container segments, lower administrative costs, and a significant
reduction in debt.
As announced previously, on April 20, 2007 Interpool entered into a
definitive agreement to be acquired by certain private equity funds
managed by affiliates of Fortress Investment Group LLC pursuant to a
merger in which all Interpool stockholders would receive $27.10 in cash
for each share of Interpool common stock that they hold. The Board of
Directors of Interpool, on the recommendation of the Special Committee
formed by the Board of Directors, has unanimously approved the merger
agreement and recommends that the Company’s
stockholders adopt the agreement at a special stockholders’
meeting that will be called to approve the transaction. In addition, Mr.
Tuchman and other significant Interpool stockholders have agreed to vote
shares equal to 40% of the outstanding shares of common stock of the
Company in favor of the adoption of the merger agreement. The
transaction is expected to close in the third quarter of 2007 and is
subject to the approval of Interpool’s
stockholders and other customary closing conditions.
The company will hold a conference call on Friday, May 11, 2007 at 10:00
AM Eastern Daylight Time to discuss its first quarter results.
Interested investors should call 888-321-3075 ten minutes prior
to the time of the conference call. Callers from outside North America
please call 973-582-2855 and hold for an operator. Identify
yourself and your company and inform the operator that you are
participating in the Interpool Earnings Conference Call.
If you are unable to access the Conference Call at 10:00 AM Eastern
Daylight Time, please call 877-519-4471 to access the taped
digital replay. To access the replay, please call and enter the digital
pin 8784232. This replay will first be available at 12:00 PM
Eastern Daylight Time on May 11, 2007 and will be available until June
11, 2007 at 12:00 PM Eastern Daylight Time.
Investors will also have the opportunity to listen to the Conference
Call live at the company’s web site www.interpool.com.
To listen to the live call via the Internet, please go to the web site
at least fifteen minutes early to register, download, and install any
necessary audio software. For those who cannot listen to the live web
cast, a replay will be available two hours after the call is completed
and will remain available for thirty days.
Interpool is one of the world's leading suppliers of equipment and
services to the transportation industry. The company is the world's
largest lessor of intermodal container chassis and a world-leading
lessor of cargo containers used in international trade.
In connection with the proposed merger, Interpool will file a proxy
statement with the Securities and Exchange Commission. INVESTORS AND
SECURITY HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT WHEN IT BECOMES
AVAILABLE, BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. Investors and
security holders may obtain a free copy of the proxy statement (when
available) and other documents filed by Interpool at the Securities and
Exchange Commission’s website at http://www.sec.gov.
The proxy statement and such other documents may also be obtained for
free from the Financial Reports page on Interpool’s
website at www.interpool.com or
by directing such request to Investor Relations at (609) 452-8900.
Interpool and its directors and executive officers and other members of
management and employees may be deemed to be participants in the
solicitation of proxies from Interpool stockholders in respect of the
proposed transaction. Information regarding Interpool’s
directors and executive officers is available in its proxy statement for
its 2006 annual meeting of stockholders, dated June 21, 2006. Additional
information regarding the interests of such potential participants will
be included in the proxy statement relating to the merger when it
becomes available.
Note: This press release and other press releases and information can be
viewed at Interpool’s website at www.interpool.com.
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.