Interpool (NYSE:IPX)
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Interpool, Inc. (NYSE: IPX) announced today that the company has filed
its Quarterly Report on Form 10-Q for the quarter ended September 30,
2006 with the Securities and Exchange Commission.
In its Form 10-Q, Interpool reported that, for the three months ended
September 30, 2006, revenues were $93.4 million compared to $107.5
million for the third quarter of 2005. For the first nine months of
2006, revenues totaled $285.6 million compared to $309.9 million for the
same period last year. The reduction in revenues primarily reflects the
sale of a substantial portion of the company’s
container operating lease fleet during March, 2006, offset in part by
higher revenues from chassis operating leases and management fees.
The company reported net income of $6.7 million for the third quarter of
2006 ($0.21 per diluted share), which reflected a reduction in net
income associated with the containers sold during March, income tax
expense of $5.8 million related to Interpool’s
decision during September, 2006, to sell its 50% ownership position in
Container Applications International (CAI), and $0.9 million of net
income from the settlement of an insurance claim. Excluding the income
tax expense and insurance proceeds, Interpool’s
earnings for the third quarter of 2006 would have been approximately
$11.5 million. This compares with net income of $43.2 million for the
third quarter of 2005 ($1.39 per diluted share). The third quarter of
2005 included a non-cash, non-taxable benefit of $16.0 million related
to an adjustment to the fair value of warrants, $11.5 million (after
taxes) from the sale of a non-transportation company in which Interpool
held a minority equity position, and $3.4 million in after tax income
from interest rate swaps. Excluding these items, Interpool’s
earnings for the third quarter of 2005 would have been $12.3 million.
For the nine months ended September 30, 2006, Interpool reported net
income of $66.3 million ($2.07 per diluted share), which included $60.2
million (after taxes) from the gain on the container sale, an after tax
impairment charge of $7.6 million associated with the conversion of
operating leases to direct financing leases for one customer, income tax
expense of $5.8 million related to Interpool’s
decision during September, 2006, to sell its 50% ownership position in
Container Applications International, a non-cash, non-taxable expense of
$5.2 million for an adjustment to the fair value of warrants, and
up-front costs to store and position chassis for the growing chassis
pool market. This compares with net income of $80.5 million ($2.55 per
diluted share) for the first nine months of 2005, which included a
non-cash, non-taxable benefit of $30.2 million for an adjustment to the
fair value of warrants, and $11.5 million (after taxes) from the sale of
a non-transportation company in which Interpool held a minority equity
position.
As previously announced, on October 1, 2006, Interpool sold its 50%
common equity interest in CAI for a total price of $77.5 million,
consisting of $40.0 million in cash and a four-year convertible note in
the amount of $37.5 million. The company had acquired its equity
interest in 1998 for a purchase price of $12.5 million, and the company’s
portion of CAI’s net income since its
investment amounted to $14.5 million. Based on the decision to sell its
interest, the company recorded a deferred tax provision of $5.8 million
on the unremitted earnings from its investment in CAI during the third
quarter of 2006. An additional tax provision of approximately $20.2
million related to the gain on sale will be recorded in the fourth
quarter. As a result, the gain on the sale of the company’s
investment in CAI of approximately $24.4 million after taxes will be
reflected as a reduction to net income of $5.8 million during the
quarter ended September 30, 2006 and an increase to net income in the
fourth quarter of approximately $30.2 million.
Martin Tuchman, Chairman and Chief Executive Officer, said, "We continue
to see strength in the chassis marketplace, with the importance of
chassis pools continuing to increase. Our recent transaction with BNSF
railroad is further evidence of the importance of pooling arrangements,
and of the confidence our customers have in us as a pool manager and
supplier of leased equipment. We have a very strong position in the
chassis business, and we expect to continue to develop that position in
the future. The container business is currently very competitive, with
demand somewhat softer than in recent years. However, we are very active
in the marketplace and have added about $50 million in book value to our
leasing portfolio over the past six months, with more in the pipeline.
In addition, the actions we’ve taken over the
past twelve months have given us a very strong financial position that
will allow us to take advantage of future opportunities.”
The company will hold a conference call on Friday, November 10, 2006
at 11:30 a.m. Eastern Standard Time. Interested investors should
call 888-694-4641 ten minutes prior to the time of the conference
call. Callers from outside North America should call 973-582-2734
and hold for an operator. Identify yourself and your company and inform
the operator that you are participating in the Interpool Third Quarter
Earnings Conference Call.
If you are unable to access the Conference Call at 11:30 a.m. EST,
please call 877-519-4471 to access the taped digital replay. To
access the replay, please call and enter the digital PIN 8086916.
This replay will first be available at 2:00 p.m. EST, November 10, 2006
and will be available until 2:00 p.m. EST, December 10, 2006.
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.
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.
Interpool, Inc. (NYSE: IPX) announced today that the company has
filed its Quarterly Report on Form 10-Q for the quarter ended
September 30, 2006 with the Securities and Exchange Commission.
In its Form 10-Q, Interpool reported that, for the three months
ended September 30, 2006, revenues were $93.4 million compared to
$107.5 million for the third quarter of 2005. For the first nine
months of 2006, revenues totaled $285.6 million compared to $309.9
million for the same period last year. The reduction in revenues
primarily reflects the sale of a substantial portion of the company's
container operating lease fleet during March, 2006, offset in part by
higher revenues from chassis operating leases and management fees.
The company reported net income of $6.7 million for the third
quarter of 2006 ($0.21 per diluted share), which reflected a reduction
in net income associated with the containers sold during March, income
tax expense of $5.8 million related to Interpool's decision during
September, 2006, to sell its 50% ownership position in Container
Applications International (CAI), and $0.9 million of net income from
the settlement of an insurance claim. Excluding the income tax expense
and insurance proceeds, Interpool's earnings for the third quarter of
2006 would have been approximately $11.5 million. This compares with
net income of $43.2 million for the third quarter of 2005 ($1.39 per
diluted share). The third quarter of 2005 included a non-cash,
non-taxable benefit of $16.0 million related to an adjustment to the
fair value of warrants, $11.5 million (after taxes) from the sale of a
non-transportation company in which Interpool held a minority equity
position, and $3.4 million in after tax income from interest rate
swaps. Excluding these items, Interpool's earnings for the third
quarter of 2005 would have been $12.3 million.
For the nine months ended September 30, 2006, Interpool reported
net income of $66.3 million ($2.07 per diluted share), which included
$60.2 million (after taxes) from the gain on the container sale, an
after tax impairment charge of $7.6 million associated with the
conversion of operating leases to direct financing leases for one
customer, income tax expense of $5.8 million related to Interpool's
decision during September, 2006, to sell its 50% ownership position in
Container Applications International, a non-cash, non-taxable expense
of $5.2 million for an adjustment to the fair value of warrants, and
up-front costs to store and position chassis for the growing chassis
pool market. This compares with net income of $80.5 million ($2.55 per
diluted share) for the first nine months of 2005, which included a
non-cash, non-taxable benefit of $30.2 million for an adjustment to
the fair value of warrants, and $11.5 million (after taxes) from the
sale of a non-transportation company in which Interpool held a
minority equity position.
As previously announced, on October 1, 2006, Interpool sold its
50% common equity interest in CAI for a total price of $77.5 million,
consisting of $40.0 million in cash and a four-year convertible note
in the amount of $37.5 million. The company had acquired its equity
interest in 1998 for a purchase price of $12.5 million, and the
company's portion of CAI's net income since its investment amounted to
$14.5 million. Based on the decision to sell its interest, the company
recorded a deferred tax provision of $5.8 million on the unremitted
earnings from its investment in CAI during the third quarter of 2006.
An additional tax provision of approximately $20.2 million related to
the gain on sale will be recorded in the fourth quarter. As a result,
the gain on the sale of the company's investment in CAI of
approximately $24.4 million after taxes will be reflected as a
reduction to net income of $5.8 million during the quarter ended
September 30, 2006 and an increase to net income in the fourth quarter
of approximately $30.2 million.
Martin Tuchman, Chairman and Chief Executive Officer, said, "We
continue to see strength in the chassis marketplace, with the
importance of chassis pools continuing to increase. Our recent
transaction with BNSF railroad is further evidence of the importance
of pooling arrangements, and of the confidence our customers have in
us as a pool manager and supplier of leased equipment. We have a very
strong position in the chassis business, and we expect to continue to
develop that position in the future. The container business is
currently very competitive, with demand somewhat softer than in recent
years. However, we are very active in the marketplace and have added
about $50 million in book value to our leasing portfolio over the past
six months, with more in the pipeline. In addition, the actions we've
taken over the past twelve months have given us a very strong
financial position that will allow us to take advantage of future
opportunities."
The company will hold a conference call on Friday, November 10,
2006 at 11:30 a.m. Eastern Standard Time. Interested investors should
call 888-694-4641 ten minutes prior to the time of the conference
call. Callers from outside North America should call 973-582-2734 and
hold for an operator. Identify yourself and your company and inform
the operator that you are participating in the Interpool Third Quarter
Earnings Conference Call.
If you are unable to access the Conference Call at 11:30 a.m. EST,
please call 877-519-4471 to access the taped digital replay. To access
the replay, please call and enter the digital PIN 8086916. This replay
will first be available at 2:00 p.m. EST, November 10, 2006 and will
be available until 2:00 p.m. EST, December 10, 2006.
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.
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.