Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2015 | |
Document and Entity Information | |
Entity Registrant Name | TRAC Intermodal LLC |
Entity Central Index Key | 1570774 |
Document Type | 10-Q |
Document Period End Date | 31-Mar-15 |
Amendment Flag | FALSE |
Current Fiscal Year End Date | -19 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 0 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $8,108 | $4,256 |
Accounts receivable, net of allowance of $20,401 and $19,030, respectively | 131,587 | 135,076 |
Net investment in direct finance leases | 15,259 | 16,215 |
Leasing equipment, net of accumulated depreciation of $412,862 and $400,408, respectively | 1,415,467 | 1,436,909 |
Goodwill | 251,907 | 251,907 |
Other assets | 44,722 | 41,954 |
Total assets | 1,867,050 | 1,886,317 |
Liabilities | ||
Accounts payable | 15,074 | 14,781 |
Accrued expenses and other liabilities | 46,876 | 74,449 |
Deferred income taxes, net | 111,255 | 102,467 |
Debt and capital lease obligations: | ||
Due within one year | 23,439 | 30,546 |
Due after one year | 1,125,798 | 1,133,676 |
Total debt and capital lease obligations | 1,149,237 | 1,164,222 |
Total liabilities | 1,322,442 | 1,355,919 |
Commitments and contingencies (Note 8) | ||
Member's interest: | ||
Member's interest | 571,423 | 559,015 |
Accumulated other comprehensive loss | -26,815 | -28,617 |
Total member's interest | 544,608 | 530,398 |
Total liabilities and member's interest | $1,867,050 | $1,886,317 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Consolidated Balance Sheets | ||
Accounts receivable, allowance | $20,401 | $19,030 |
Leasing equipment, accumulated depreciation | $412,862 | $400,408 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Equipment leasing revenue | $160,689 | $131,369 |
Finance revenue | 406 | 595 |
Other revenue | 7,660 | 7,687 |
Total revenues | 168,755 | 139,651 |
Expenses: | ||
Direct operating expenses | 84,951 | 66,833 |
Selling, general and administrative expenses | 21,276 | 18,569 |
Depreciation expense | 17,901 | 18,504 |
Provision for doubtful accounts | 2,072 | 3,457 |
Impairment of leasing equipment | 1,433 | 1,126 |
Loss on modification and extinguishment of debt and capital lease obligations | 39 | 22 |
Interest expense | 22,097 | 22,216 |
Interest income | -1 | -24 |
Other income, net | -554 | -382 |
Total expenses | 149,214 | 130,321 |
Income before provision for income taxes | 19,541 | 9,330 |
Provision for income taxes | 7,380 | 3,856 |
Net income | $12,161 | $5,474 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive (Loss) Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Consolidated Statements of Comprehensive (Loss) Income | ||
Net Income | $12,161 | $5,474 |
Unrealized loss on derivative instruments, net of tax of $704 and $89, respectively | -1,084 | -136 |
Derivative loss reclassified into earnings, net of tax of ($2,123) and ($1,814), respectively | 3,293 | 2,792 |
Foreign currency translation loss, net of tax of $237 and $130, respectively | -407 | -207 |
Total other comprehensive income, net of tax | 1,802 | 2,449 |
Total comprehensive income | $13,963 | $7,923 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Consolidated Statements of Comprehensive (Loss) Income | ||
Unrealized loss on derivative instruments, tax | $704 | $89 |
Derivative loss reclassified into earnings, net | -2,123 | -1,814 |
Foreign currency translation loss, net | $237 | $130 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net income | $12,161 | $5,474 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 17,940 | 18,560 |
Provision for doubtful accounts | 2,072 | 3,457 |
Amortization of deferred financing fees | 1,826 | 1,574 |
Loss on modification and extinguishment of debt and capital lease obligations | 39 | 22 |
Derivative loss reclassified into earnings | 5,416 | 4,606 |
Ineffective portion of cash flow hedges | -20 | -21 |
Impairment of leasing equipment | 1,433 | 1,126 |
Share-based compensation | 247 | 218 |
Deferred income taxes, net | 8,467 | 3,157 |
Other, net | -554 | -384 |
Changes in assets and liabilities: | ||
Accounts receivable | 1,416 | -5,456 |
Other assets | -2,627 | -2,132 |
Accounts payable | 294 | 2,054 |
Accrued expenses and other liabilities | -21,109 | -9,304 |
Net cash provided by operating activities | 27,001 | 22,951 |
Cash flows from investing activities | ||
Proceeds from sale of leasing equipment | 6,500 | 6,042 |
Collections on net investment in direct finance leases, net of interest earned | 1,225 | 1,187 |
Purchase of leasing equipment | -12,158 | -15,777 |
Purchase of fixed assets | -3,299 | -631 |
Net cash used in investing activities | -7,732 | -9,179 |
Cash flows from financing activities | ||
Proceeds from long-term debt | 54,000 | 22,000 |
Repayments of long term debt | -69,064 | -40,744 |
Repurchase of indirect parent shares from employees | -585 | |
Net cash used in financing activities | -15,064 | -19,329 |
Effect of changes in exchange rates on cash and cash equivalents | -353 | -171 |
Net increase (decrease) in cash and cash equivalents | 3,852 | -5,728 |
Cash and cash equivalents, beginning of year | 4,256 | 11,843 |
Cash and cash equivalents, end of period | 8,108 | 6,115 |
Supplemental disclosures of cash flow information | ||
Cash paid for interest | 22,891 | 24,075 |
Cash paid for taxes, net | $819 | $814 |
Description_of_the_Business_an
Description of the Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Description of the Business and Basis of Presentation | |
Description of the Business and Basis of Presentation | 1.Description of the Business and Basis of Presentation |
The accompanying Consolidated Financial Statements of TRAC Intermodal LLC (the “Company,” “we,” “our” or “TRAC”) are unaudited and have been prepared pursuant to U.S. generally accepted accounting principles (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting and, in our opinion, reflect all adjustments, including normal recurring items, which are necessary to present fairly the results for interim periods. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the entire year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC; however, we believe that the disclosures are adequate to make information presented not misleading. These interim Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2014 and with the information contained in other publicly-available filings with the SEC. | |
TRAC is an intermodal chassis solutions provider for domestic and international transportation companies in North America. Its principal business is providing marine and domestic chassis on both long and short-term leases or rental agreements to a diversified customer base including the world’s leading shipping lines, Class I railroads, major U.S. intermodal transportation companies and motor carriers. The Company and its subsidiaries conduct business principally in one industry, the leasing of intermodal transportation equipment. The Company has two reportable segments, the Marine Market segment and the Domestic Market segment. The Company purchases equipment directly from manufacturers and shipping lines as well as through lease agreements, some of which qualify as capital leases. Primarily all of the Company’s revenues and long-lived assets are attributable to the United States. | |
TRAC is a Delaware limited liability company that was formed on July 12, 2012 to facilitate the issuance of $300,000 aggregate principal amount of 11% Senior Secured Notes (the “Notes”). The Company conducts its business through its 100% owned subsidiary, Interpool, Inc. (“Interpool”) and its consolidated subsidiaries. TRAC is ultimately owned by Seacastle Inc. (“Seacastle”). Seacastle is owned by private equity funds that are managed by an affiliate of Fortress Investment Group LLC (“Fortress”) and by employees of affiliates of Seacastle. Interpool was founded in 1968 as an operating lessor servicing the intermodal transportation equipment industry. Interpool was listed on The New York Stock Exchange as a public company in 1993 and was acquired and taken private by Seacastle in July 2007. | |
New Accounting Standards | |
Pending Adoption | |
In April 2015, the FASB issued authoritative guidance on accounting for Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). This update requires that debt issuance cost related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts, without changing existing recognition and measurement guidance for debt issuance costs. The new guidance is required to be applied on a retrospective basis and to be accounted for as a change in an accounting principle. The amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years and early adoption of the amendments in this update is permitted. The Company will adopt this standard in the first quarter of 2016 on a retrospective basis. The implementation of this standard will result in the reclassification of certain debt issuance costs from Other assets to a reduction in the carrying amount of the related debt liability within the Consolidated Balance Sheets. | |
In February 2015, the FASB issued authoritative guidance on accounting for Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). The amendments address stakeholders concerns that current U.S. GAAP might require a reporting entity to consolidate another legal entity in situations in which the reporting entity’s contractual rights do not give it the ability to act primarily on its own behalf, the reporting entity does not hold a majority of the legal entity’s voting rights, or the reporting entity is not exposed to a majority of the legal entity’s economic benefits or obligations. This update changes the analysis that a reporting entity performs to determine whether it should consolidate certain types of legal entities. This update is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015 and early adoption is permitted. The Company is currently evaluating the impact of this standard on its Consolidated Financial Statements. | |
In January 2015, the FASB issued authoritative guidance on accounting for Income Statement-Extraordinary and Unusual Items (Topic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (“ASU 2015-01”). The update eliminates from U.S. GAAP the concept of extraordinary items. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company will adopt this standard in the first quarter of 2016. The implementation of this standard is not expected to have any impact on the Company’s Consolidated Financial Statements. | |
No other new accounting pronouncements issued or effective during 2015 had or are expected to have a material impact on the Company’s Consolidated Financial Statements. | |
Leasing_Activity
Leasing Activity | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Leasing Activity | |||||||||||
Leasing Activity | 2. Leasing Activity | ||||||||||
Equipment Leasing Revenue | |||||||||||
The Company has non-cancelable operating leases for certain of its leasing equipment. At March 31, 2015, future minimum lease revenue under these agreements is estimated as follows: | |||||||||||
2015 | $ | 52,248 | |||||||||
2016 | 46,602 | ||||||||||
2017 | 32,746 | ||||||||||
2018 | 4,951 | ||||||||||
2019 | 3,904 | ||||||||||
Thereafter | 135 | ||||||||||
$ | 140,586 | ||||||||||
Finance Revenue | |||||||||||
At March 31, 2015, receivables under direct finance leases are collectible through 2022 as follows: | |||||||||||
Total Lease | Unearned | Net Lease | |||||||||
Receivables | Lease Income | Receivables | |||||||||
2015 | $ | 3,561 | $ | 1,097 | $ | 2,464 | |||||
2016 | 3,877 | 1,146 | 2,731 | ||||||||
2017 | 10,354 | 403 | 9,951 | ||||||||
2018 | 95 | 12 | 83 | ||||||||
2019 | 9 | 8 | 1 | ||||||||
Thereafter | 45 | 16 | 29 | ||||||||
$ | 17,941 | $ | 2,682 | $ | 15,259 | ||||||
As of December 31, 2014, the Company had total lease receivables, unearned lease income and net lease receivables of $19,271, $3,056 and $16,215, respectively. As of March 31, 2015 and December 31, 2014, the Company had guaranteed and unguaranteed residual values for leasing equipment on direct finance leases of $8,776 and $8,778, respectively. The unguaranteed residual values are reflected in “Total Lease Receivables” above. | |||||||||||
Historically, the Company has not experienced losses related to direct finance leases and does not project future uncollectible amounts related to the principal balances receivable. If customers were to default, the Company would seek to recover the equipment securing the lease, often at fair market values in excess of the remaining receivable, and present certain claims to its insurers of default losses. | |||||||||||
Leasing_Equipment
Leasing Equipment | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Leasing Equipment | ||||||||
Leasing Equipment | 3. Leasing Equipment | |||||||
The following is a summary of leasing equipment recorded on the Consolidated Balance Sheets: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Total leasing equipment | $ | 1,828,329 | $ | 1,837,317 | ||||
Less accumulated depreciation | (412,862 | ) | (400,408 | ) | ||||
Leasing equipment, net of accumulated depreciation | $ | 1,415,467 | $ | 1,436,909 | ||||
Leasing equipment includes assets recorded under capital leases of $149,143 and $182,688 with accumulated depreciation of $46,529 and $53,016 at March 31, 2015 and December 31, 2014, respectively. | ||||||||
Impairment_of_Leasing_Equipmen
Impairment of Leasing Equipment | 3 Months Ended |
Mar. 31, 2015 | |
Impairment of Leasing Equipment | |
Impairment of Leasing Equipment | 4. Impairment of Leasing Equipment |
Impairment of leasing equipment amounted to $1,433 and $1,126 for the three months ended March 31, 2015 and 2014, respectively. The increase in impairment charges reflected during 2015 was primarily due to an increase in write-downs associated with axle sets anticipated to be unsuitable for remanufacturing. The above impairment charges are recorded in Impairment of leasing equipment in the Consolidated Statements of Operations. | |
Capitalized_Software_Developme
Capitalized Software Development Costs | 3 Months Ended |
Mar. 31, 2015 | |
Capitalized Software Development Costs | |
Capitalized Software Development Costs | 5. Capitalized Software Development Costs |
In 2014, the Company’s Investment Committee approved the proposal to replace its principle operating and financial reporting systems, named “Project Helix” to provide more functional capabilities necessitated by new business requirements emerging from the industry shift to the motor carrier model. In conjunction with application development efforts during the quarter ended March 31, 2015, the Company capitalized $2,742 of eligible costs in accordance with ASC 350-40, Internal-Use Software. These costs are included in Other assets in the Consolidated Balance Sheet. Once the software is substantially complete and ready for its intended use, capitalization will cease. Capitalized software costs will be amortized on a straight-line basis over seven years, the estimated useful life of the software. | |
Borrowings
Borrowings | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Borrowings | ||||||||
Borrowings | 6. Borrowings | |||||||
The following is a summary of the Company’s borrowings: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Senior Secured 11% Notes | $ | 300,000 | $ | 300,000 | ||||
ABL Facility | 760,000 | 759,000 | ||||||
Loans Payable CIMC | 16,352 | 16,950 | ||||||
Capital lease obligations | 72,885 | 88,272 | ||||||
Total debt | 1,149,237 | 1,164,222 | ||||||
Less current maturities | (23,439 | ) | (30,546 | ) | ||||
Long-term debt, less current maturities | $ | 1,125,798 | $ | 1,133,676 | ||||
The Company’s debt consisted of notes, loans and capital lease obligations payable in varying amounts through 2021, with a weighted-average interest rate of 5.78% for the year ended December 31, 2014. For the three months ended March 31, 2015 and 2014, the weighted-average interest rate was 5.72% and 6.05%, respectively. The weighted-average interest rates disclosed are calculated as “all-in” rates which include cash interest expense and amortization of agents’ fees and deferred financing fees. | ||||||||
On February 28, 2015, the Company exercised a purchase option from a maturing capital lease for an aggregate price of $11,806. | ||||||||
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||
Derivatives and Hedging Activities | ||||||||||||||||||||||||||||
Derivatives and Hedging Activities | 7. Derivatives and Hedging Activities | |||||||||||||||||||||||||||
In the normal course of business, the Company utilizes interest rate derivatives to manage its exposure to interest rate risks. Through the utilization of interest rate derivatives, the Company receives floating rate payments in exchange for fixed rate payments, effectively converting its floating rate debt to a fixed rate. If certain conditions are met, an interest rate derivative may be specifically designated as a cash flow hedge. The Company’s interest rate derivative qualifies and has been designated as a cash flow hedge. For the effective portion of the derivative gain or loss, changes in fair value are recorded in Accumulated other comprehensive income and subsequently reclassified into earnings when the interest payments on the debt are recorded in earnings. The ineffective portion of the derivative gain or loss is recorded in Interest expense in the Consolidated Statements of Operations. | ||||||||||||||||||||||||||||
On January 10, 2013, the Company entered into an interest rate swap transaction with Deutsche Bank AG effectively converting $300,000 of variable rate debt based upon LIBOR into a fixed rate instrument. The Company receives one month LIBOR with interest payable at a rate of 0.756% on the notional amount. At March 31, 2015, one month LIBOR was 0.176%. The agreement terminates on August 9, 2017, in line with the termination date of the ABL Facility. | ||||||||||||||||||||||||||||
The Company’s interest rate derivative involves counterparty credit risk. As of March 31, 2015, the Company does not anticipate its counterparty will fail to meet its obligation. As of March 31, 2015, there are no credit risk related contingent features in the Company’s derivative agreement. For additional disclosures related to derivative instruments, see Notes 10 and 14 to the Consolidated Financial Statements. | ||||||||||||||||||||||||||||
The Company held the following interest rate derivative as of March 31, 2015: | ||||||||||||||||||||||||||||
Notional | Effective | Maturity | Floating | Fixed Leg | Fair | |||||||||||||||||||||||
Hedged Item | Amount | Date | Date | Rate | Interest Rate | Value Gain(a) | ||||||||||||||||||||||
ABL Facility | $ | 300,000 | Jan-13 | Aug-17 | 1M LIBOR | 0.756 | % | $ | 248 | |||||||||||||||||||
(a)This interest rate derivative is recorded in Other Assets in the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||
At the dates indicated, the Company had in place total interest rate derivatives to fix floating interest rates on a portion of the borrowings under its debt facilities as summarized below: | ||||||||||||||||||||||||||||
Total Current | Weighted-Average | Weighted-Average | ||||||||||||||||||||||||||
Notional | Fixed Leg | Remaining Term | ||||||||||||||||||||||||||
Amount | Interest Rate | |||||||||||||||||||||||||||
March 31, 2015 | $ | 300,000 | 0.756 | % | 2.28 years | |||||||||||||||||||||||
December 31, 2014 | $ | 300,000 | 0.756 | % | 2.53 years | |||||||||||||||||||||||
The following table sets forth the net of tax effect of the Company’s cash flow hedge derivative instruments on the Consolidated Financial Statements for the periods indicated: | ||||||||||||||||||||||||||||
Effective Portion | Ineffective Portion | |||||||||||||||||||||||||||
Derivative | Change in | Classification | Loss | Classification | (Gain) Loss | |||||||||||||||||||||||
Instruments | Unrealized | of Loss | Reclassified | of Loss | Recognized | |||||||||||||||||||||||
Loss | Reclassified | from OCI | Recognized | Directly in | ||||||||||||||||||||||||
Recognized in | from OCI | into Income | Directly in | Income on | ||||||||||||||||||||||||
OCI on | into Income | (b) | Income on | Derivative | ||||||||||||||||||||||||
Derivatives (a) | Derivative | (c) | ||||||||||||||||||||||||||
Three Months ended March 31, 2015 | Interest rate derivatives | $ | (1,353 | ) | Interest expense | $ | 3,562 | Interest expense | $ | (20 | ) | |||||||||||||||||
Three Months ended March 31, 2014 | Interest rate derivatives | $ | (409 | ) | Interest expense | $ | 3,065 | Interest expense | $ | (21 | ) | |||||||||||||||||
(a)This represents the change in the fair market value of the Company’s interest rate derivatives, net of tax, offset by the amount of actual cash paid related to the net settlements of the interest rate derivatives, net of tax. | ||||||||||||||||||||||||||||
(b)This represents the amount of actual cash paid, net of tax, related to the net settlements of the interest rate derivatives plus any effective amortization of deferred losses on the Company’s terminated derivative, net of tax. | ||||||||||||||||||||||||||||
Three Months ended | ||||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
Net settlements of interest rate derivative, net of tax of ($174) and ($177), respectively | $ | 269 | $ | 273 | ||||||||||||||||||||||||
Amortization of terminated derivatives, net of tax of ($2,123) and ($1,814), respectively | 3,293 | 2,792 | ||||||||||||||||||||||||||
$ | 3,562 | $ | 3,065 | |||||||||||||||||||||||||
(c)Amount impacting income not related to AOCI reclassification. | ||||||||||||||||||||||||||||
The following table summarizes the deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||||||||||
Hedged | Original | Effective | Maturity | Fixed | Termination | Deferred | Un- | Amount of | Amount | |||||||||||||||||||
Maximum | De-designation | Loss | amortized | Deferred Loss | of Deferred | |||||||||||||||||||||||
Notional | Upon | Deferred | Amortized | Loss Expected | ||||||||||||||||||||||||
(Gain) or | (including | to be | ||||||||||||||||||||||||||
Loss at | Accelerated | Amortized | ||||||||||||||||||||||||||
March 31, | Amortization) | Over | ||||||||||||||||||||||||||
into Interest | the Next | |||||||||||||||||||||||||||
Expense for the | Twelve | |||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||
Ended March 31, | ||||||||||||||||||||||||||||
Item | Amount | Date | Date | Rate % | Date | Termination | 2015 | 2015 | 2014 | Months | ||||||||||||||||||
(a) | $ | 60,852 | Jul-07 | Oct-17 | 5.299 | % | Dec-07 | $ | 1,853 | $ | (8 | ) | $ | — | $ | 4 | $ | (4 | ) | |||||||||
(a) | 200,000 | Jul-07 | Jul-17 | 5.307 | % | Dec-07 | 6,412 | (24 | ) | 1 | 18 | (11 | ) | |||||||||||||||
(a) | 163,333 | Jul-07 | Jul-14 | 5.58 | % | Dec-07 | 3,773 | — | — | 89 | — | |||||||||||||||||
(b) | 150,000 | Jul-08 | Oct-14 | 5.512 | % | Jul-08 | 1,711 | — | — | 14 | — | |||||||||||||||||
(b) | 150,000 | Oct-07 | Oct-14 | 5.512 | % | Jul-08 | 3,498 | — | — | 46 | — | |||||||||||||||||
(b) | 480,088 | Oct-14 | Oct-17 | 5.436 | % | Jul-08 | 1,711 | 1,387 | 179 | — | 621 | |||||||||||||||||
(b) | 480,088 | Oct-14 | Oct-17 | 5.436 | % | Jul-08 | 1,526 | 1,194 | 186 | — | 655 | |||||||||||||||||
(a) | 163,333 | Nov-07 | Jul-14 | 4.605 | % | Jul-08 | 2,082 | — | — | (59 | ) | — | ||||||||||||||||
(b) | 332,525 | Oct-07 | Oct-14 | 4.743 | % | Jul-08 | 7,641 | — | — | (19 | ) | — | ||||||||||||||||
(a) | 58,238 | Nov-07 | Oct-17 | 4.305 | % | Jul-08 | 862 | (89 | ) | (14 | ) | (15 | ) | (56 | ) | |||||||||||||
(a) | 193,333 | Nov-07 | Jul-17 | 4.365 | % | Jul-08 | 3,265 | (282 | ) | (58 | ) | (60 | ) | (186 | ) | |||||||||||||
(c) | 37,000 | Sep-07 | Jul-14 | 5.526 | % | Mar-11 | 3,122 | — | — | 150 | — | |||||||||||||||||
(d) | 53,286 | Jul-08 | Oct-17 | 3.989 | % | Aug-12 | 2,048 | 442 | 93 | 133 | 300 | |||||||||||||||||
(d) | 181,667 | Jul-08 | Jul-17 | 4.033 | % | Aug-12 | 8,538 | 1,581 | 406 | 612 | 1,119 | |||||||||||||||||
(d) | 43,333 | Jul-08 | Jul-14 | 4.328 | % | Aug-12 | 11,033 | — | — | 1,462 | — | |||||||||||||||||
(d) | 211,567 | Jul-08 | Oct-14 | 4.147 | % | Aug-12 | 17,002 | — | — | 1,648 | — | |||||||||||||||||
(d) | 150,000 | Jul-08 | Oct-14 | 4 | % | Aug-12 | 5,080 | — | — | 583 | — | |||||||||||||||||
(d) | 427,407 | Oct-14 | Oct-17 | 5.174 | % | Aug-12 | 46,372 | 38,461 | 4,623 | — | 16,724 | |||||||||||||||||
Total | $ | 127,529 | $ | 42,662 | $ | 5,416 | $ | 4,606 | $ | 19,162 | ||||||||||||||||||
(a)This hedged item is referred to as Chassis Funding II Floating Rate Asset-Backed Notes, Series 2007-1 | ||||||||||||||||||||||||||||
(b)This hedged item is referred to as Chassis Funding Floating Rate Asset-Backed Notes, Series 2007-1 | ||||||||||||||||||||||||||||
(c)This hedged item is referred to as Chassis Financing Program, Term Loan Agreement—Portfolio C | ||||||||||||||||||||||||||||
(d)This hedged item is referred to as Chassis Financing Program, Portfolio A | ||||||||||||||||||||||||||||
The amount of loss expected to be reclassified from AOCI into interest expense over the next 12 months consists of net interest settlements on active interest rate derivatives in the amount of $800 (which is net of tax of $517) and amortization of deferred losses on the Company’s terminated derivatives of $11,637 (which is net of tax of $7,525). | ||||||||||||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | 8. Commitments and Contingencies |
Purchase Commitments | |
Our chassis purchase commitments are related to commitments to refurbish and remanufacture chassis during 2015. At March 31, 2015, the Company had commitments totaling approximately $8,332, all of which was committed for 2015. | |
Lease Commitments | |
The Company is party to various operating leases relating to office facilities and certain other equipment with various expiration dates through 2025. All leasing arrangements contain normal leasing terms without unusual purchase options or escalation clauses. As of March 31, 2015, the aggregate minimum rental commitment under operating leases having initial or remaining non-cancelable lease terms in excess of one year was $35,101. | |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Taxes | |
Income Taxes | |
9. Income Taxes | |
The consolidated income tax provision for the three months ended March, 31, 2015 and 2014 was determined based upon estimates of the Company’s consolidated forecasted effective income tax rates for the years ended December 31, 2015 and 2014, respectively. For the three months ended March 31, 2015, the Company recorded a tax provision of $7,380, reflecting a 37.8% effective tax rate. This compares to a tax provision of $3,856, reflecting a 41.3% effective tax rate for the three months ended March 31, 2014. The Company’s effective tax rate differs from the U.S. federal tax rate of 35% primarily due to Canadian and Mexican tax provisions. | |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||
Accumulated Other Comprehensive Loss | 10. Accumulated Other Comprehensive Loss | |||||||||||||
Accumulated Other Comprehensive Loss (“AOCI”) includes the changes in the fair value of derivative instruments, reclassification into earnings of amounts previously deferred relating to derivative instruments and foreign currency translation gains and losses primarily relating to the Company’s Canadian operation. | ||||||||||||||
For the three months ended March 31, 2015, the components of AOCI, net of tax, are as follows: | ||||||||||||||
Unrealized | Net | Foreign | Total | |||||||||||
Gain (Loss) | Derivative | Currency | Accumulated | |||||||||||
on | Loss to be | Translation | Other | |||||||||||
Derivative | Reclassified | Comprehensive | ||||||||||||
Instruments | into | Loss | ||||||||||||
Earnings | ||||||||||||||
Balance, December 31, 2014 | $ | 1,121 | $ | (29,201 | ) | $ | (537 | ) | $ | (28,617 | ) | |||
Current-period other comprehensive income (loss) | (1,084 | ) | 3,293 | (407 | ) | 1,802 | ||||||||
Balance, March 31, 2015 | $ | 37 | $ | (25,908 | ) | $ | (944 | ) | $ | (26,815 | ) | |||
The following table presents the effects of reclassifications out of AOCI and into the Consolidated Statement of Operations for the periods indicated: | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
Income Statement Line Item | 2015 | 2014 | ||||||||||||
Total loss in AOCI reclassifications for previously unrealized net losses on terminated derivatives | Interest expense | $ | 5,416 | $ | 4,606 | |||||||||
Related income tax benefit | Benefit for income taxes | (2,123 | ) | (1,814 | ) | |||||||||
Net loss reclassified out of AOCI | $ | 3,293 | $ | 2,792 | ||||||||||
ShareBased_Payment
Share-Based Payment | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Share-Based Payment | ||||||||||
Share-Based Payment | 11. Share-Based Payment | |||||||||
A summary of the restricted shares of SCT Chassis, Inc. under the Company’s share-based compensation plan is as follows. All amounts are in thousands except share and per share amounts. | ||||||||||
Non-vested Shares | Shares | Weighted- | Fair Value | |||||||
Average | of Shares | |||||||||
Grant Date | at Grant | |||||||||
Fair Value | Date | |||||||||
per share | ||||||||||
Non-vested at January 1, 2015 | 180,217 | $ | 6.71 | $ | 1,209 | |||||
Granted | 14,702 | 11.08 | 163 | |||||||
Forfeited | — | — | — | |||||||
Vested | (128,741 | ) | 7.01 | (902 | ) | |||||
Non-vested at March 31, 2015 | 66,178 | $ | 7.1 | $ | 470 | |||||
On January 1, 2015, 14,702 restricted shares of SCT Chassis, Inc. were granted to two key employees at a fair value of $11.08 per share or a total fair value of $163. These shares vested immediately. | ||||||||||
The Company recorded share-based compensation expense for the three months ended March 31, 2015 and 2014 of $247 and $218, respectively. Compensation expense is recorded as a component of Selling, general and administrative expense in the Company’s Consolidated Statements of Operations and is recognized on a straight-line basis with the compensation expense recognized as of any date being at least equal to the portion of the grant-date fair value that is vested at that date. Total unrecognized compensation expense was approximately $346 at March 31, 2015, which is expected to be recognized over the remaining weighted-average vesting period of 1.2 years. | ||||||||||
The Management Shareholder Agreements also provide for additional grants of 1,096,954 restricted shares upon the achievement of certain performance conditions or a certain market condition following a liquidity event. No compensation expense has been recorded related to these shares since achievement of these conditions is not considered probable. | ||||||||||
Share Repurchases | ||||||||||
There were no share repurchases for the quarter ended March 31, 2015. | ||||||||||
Segment_and_Geographic_Informa
Segment and Geographic Information | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Segment and Geographic Information | ||||||||||||||
Segment and Geographic Information | 12. Segment and Geographic Information | |||||||||||||
The Company’s principal business is providing marine and domestic chassis on both long and short-term leases or rental agreements to a diversified customer base including the world’s leading shipping lines, Class I railroads, major U.S. intermodal transportation companies and motor carriers. The Company provides such services to its customers through two operating and reportable segments, the Marine Market segment and the Domestic Market segment. The reportable segments are based on the chassis markets that are served by the Company. | ||||||||||||||
The Company evaluates segment performance and allocates resources to them primarily based upon Adjusted EBITDA. The Company defines Adjusted EBITDA as income (loss) before income taxes, interest expense, depreciation and amortization expense, impairment of assets and leasing equipment, loss on modification and extinguishment of debt and capital lease obligations, other expense (income), interest income, non-cash share-based compensation and principal collections on direct finance leases. Adjusted EBITDA is not a measure recognized under U.S. GAAP and does not have a standardized meaning prescribed by U.S. GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Adjusted EBITDA helps management identify controllable expenses and make decisions designed to help the Company meet its current financial goals and optimize its financial performance. Accordingly, the Company believes this metric measures its financial performance based on operational factors that management can impact in the short-term, namely the cost structure and expenses of the organization. | ||||||||||||||
The following tables show segment information for the three months ended March 31, 2015 and 2014. | ||||||||||||||
Three Months ended March 31, 2015 | Marine | Domestic | Other | Total | ||||||||||
Market | Market | |||||||||||||
segment | segment | |||||||||||||
Term revenue | $ | 9,166 | $ | 3,947 | $ | — | $ | 13,113 | ||||||
Pool revenue | 109,357 | 38,219 | — | 147,576 | ||||||||||
All other revenue | 3,895 | 2,318 | 1,853 | 8,066 | ||||||||||
Total revenue | $ | 122,418 | $ | 44,484 | $ | 1,853 | $ | 168,755 | ||||||
Adjusted EBITDA | 42,216 | 27,158 | (7,446 | ) | 61,928 | |||||||||
Depreciation expense | 9,654 | 6,783 | 1,464 | 17,901 | ||||||||||
Net investment in direct finance leases | 15,055 | 204 | — | 15,259 | ||||||||||
Leasing equipment | 780,895 | 491,587 | 142,985 | 1,415,467 | ||||||||||
Capital expenditures for long-lived assets | 2,151 | 10,007 | 3,299 | 15,457 | ||||||||||
Three Months ended March 31, 2014 | Marine | Domestic | Other | Total | ||||||||||
Market | Market | |||||||||||||
segment | segment | |||||||||||||
Term revenue | $ | 10,149 | $ | 5,154 | $ | — | $ | 15,303 | ||||||
Pool revenue | 80,778 | 35,288 | — | 116,066 | ||||||||||
All other revenue | 4,959 | 2,372 | 951 | 8,282 | ||||||||||
Total revenue | $ | 95,886 | $ | 42,814 | $ | 951 | $ | 139,651 | ||||||
Adjusted EBITDA | 32,888 | 25,472 | (6,163 | ) | 52,197 | |||||||||
Depreciation expense | 9,021 | 7,634 | 1,849 | 18,504 | ||||||||||
Net investment in direct finance leases | 21,518 | 150 | — | 21,668 | ||||||||||
Leasing equipment | 749,753 | 462,392 | 174,893 | 1,387,038 | ||||||||||
Capital expenditures for long-lived assets | 14,910 | 867 | 631 | 16,408 | ||||||||||
The following are reconciliations of Adjusted EBITDA to the Company’s net income for the three months ended March 31, 2015 and 2014. | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Adjusted EBITDA | $ | 61,928 | $ | 52,197 | ||||||||||
Principal collections on direct finance leases, net of interest earned | (1,225 | ) | (1,187 | ) | ||||||||||
Non-cash share-based compensation | (247 | ) | (218 | ) | ||||||||||
Interest expense | (22,097 | ) | (22,216 | ) | ||||||||||
Depreciation expense | (17,901 | ) | (18,504 | ) | ||||||||||
Impairment of leasing equipment | (1,433 | ) | (1,126 | ) | ||||||||||
Loss on modification and extinguishment of debt and capital lease obligations | (39 | ) | (22 | ) | ||||||||||
Other income, net | 554 | 382 | ||||||||||||
Interest income | 1 | 24 | ||||||||||||
Income before provision for income taxes | 19,541 | 9,330 | ||||||||||||
Provision for income taxes | 7,380 | 3,856 | ||||||||||||
Net income | $ | 12,161 | $ | 5,474 | ||||||||||
Geographic Information | ||||||||||||||
Primarily all of the Company’s revenues and long lived assets are attributable to the United States, the Company’s country of domicile. | ||||||||||||||
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions | |
Related Party Transactions | 13. Related Party Transactions |
Management, Facility Fees and Chassis Leasing | |
The Company incurs charges from Seacastle for facility fees. The Company also charges management fees to a subsidiary of Seacastle for expenses incurred and services performed on its behalf. For the three months ended March 31, 2015 and 2014, the above activity resulted in income for the Company, on a net basis, of $31 and $24, respectively. These amounts are included in Selling, general and administrative expenses on the Consolidated Statements of Operations. The Company has a net receivable from affiliates of $678 and $705 at March 31, 2015 and December 31, 2014, respectively, which is included in Other assets on the Consolidated Balance Sheets. | |
The Company also leases chassis to the Florida East Coast Railway (“FEC”) under term lease and pool arrangements. The parent company to the FEC is Florida East Coast Industries, Inc., which is owned by private equity funds managed by affiliates of Fortress. For the three months ended March 31, 2015 and 2014, the Company recorded chassis leasing revenue from FEC of $509 and $370, respectively. These amounts are recorded in Equipment leasing revenue on the Consolidated Statements of Operations. | |
Due from Employees | |
During the first quarter of 2015, the Company recorded a receivable from certain key employees of $620 for payroll taxes paid on their behalf by the Company related to the vesting of their restricted stock grants. The receivable is included in Other assets in the Consolidated Balance Sheet. Settlement is anticipated on or before December 31, 2015. | |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||
Fair Value of Financial Instruments | 14. Fair Value of Financial Instruments | |||||||||||||
The following table sets forth the valuation of the Company’s financial assets and liabilities measured at fair value on a recurring basis by the input levels (as defined) at the dates indicated: | ||||||||||||||
Fair Value | Fair Value Measurement as of | |||||||||||||
as of | March 31, 2015 using | |||||||||||||
March 31, | Fair Value Hierarchy | |||||||||||||
2015 | Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 8,108 | $ | 8,108 | $ | — | $ | — | ||||||
Derivative instruments | 248 | — | 248 | — | ||||||||||
Fair Value | Fair Value Measurement as of | |||||||||||||
as of | December 31, 2014 using | |||||||||||||
December 31, | Fair Value Hierarchy | |||||||||||||
2014 | Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 4,256 | $ | 4,256 | $ | — | $ | — | ||||||
Derivative instruments | 2,015 | — | 2,015 | — | ||||||||||
Cash and cash equivalents: Cash and cash equivalents include all cash balances and highly liquid investments having original maturities of three months or less at the time of purchase. These instruments are stated at cost, which approximates market value because of the short-term nature of the instruments. | ||||||||||||||
Derivative instruments: The Company’s interest rate derivatives were recorded at fair value on the Company’s Consolidated Balance Sheets and consist of United States dollar denominated LIBOR-based interest rate swaps. Their fair values were determined using cash flows discounted at relevant market interest rates in effect at the period close. The fair value generally reflected the estimated amounts that the Company would receive or pay to transfer the contracts at the reporting date and therefore reflected the Company’s or counterparty’s non-performance risk. Additionally, the Company has analyzed each of the redemption features included in the notes to determine whether any of these embedded features should be bifurcated in accordance with the Derivatives and Hedging Topic of the FASB ASC (ASC 815). The Company has concluded that the redemption feature which offers optional redemption by the Company of up to 35% of the aggregate principal amount of the notes at a redemption price of 111% of the aggregate principal amount of the notes using the cash proceeds of an equity offering qualifies as a feature that should be bifurcated under ASC 815. | ||||||||||||||
The Company has determined that the resulting measurement of the fair value of this embedded derivative is immaterial to the Consolidated Financial Statements, and will continue to reassess the fair value of this derivative prospectively with any changes recorded in earnings. | ||||||||||||||
Leasing equipment that is deemed to be impaired is measured at fair value on a non-recurring basis. The fair value is calculated using the income approach based on inputs classified as Level 2 in the fair value hierarchy. | ||||||||||||||
The Company believes the carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses and other liabilities approximates the fair value of these financial instruments because of their short-term nature. | ||||||||||||||
Debt: The Company’s debt consists of fixed and floating rate instruments. Variable interest rate debt was $479,610 as of March 31, 2015 and $479,334 as of December 31, 2014. Accordingly, the Company’s variable rate debt approximates market value for similar instruments at the respective dates. The Company had fixed rate debt of $669,627 as of March 31, 2015 and $684,888 as of December 31, 2014. Fair value was calculated based on inputs classified as Level 2 in the fair value hierarchy. | ||||||||||||||
The carrying amounts and fair values of the Company’s financial instruments are as follows: | ||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||
Carrying | Fair Value of | Carrying | Fair Value of | |||||||||||
Amount of | Asset | Amount of | Asset | |||||||||||
Asset | (Liability) | Asset | (Liability) | |||||||||||
(Liability) | (Liability) | |||||||||||||
Derivative Instrument | $ | 248 | $ | 248 | $ | 2,015 | $ | 2,015 | ||||||
Total debt and capital lease obligations | $ | (1,149,237 | ) | $ | (1,179,454 | ) | $ | (1,164,222 | ) | $ | (1,186,862 | ) | ||
Guarantor_Financial_Informatio
Guarantor Financial Information | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Guarantor Financial Information | |||||||||||||||||
Guarantor Financial Information | 15. Guarantor Financial Information | ||||||||||||||||
On August 9, 2012, TRAC Intermodal LLC along with TRAC Intermodal Corp., entered into a purchase agreement pursuant to which it sold $300,000 aggregate principal amount of the Senior Secured 11% Notes (the”Notes”). Concurrent with the offering of the Notes, the Company entered into a registration rights agreement with investors which required the Company to file a registration statement with the SEC to offer exchange notes with terms substantially identical to the Notes. The exchange offer to exchange the Notes for notes which have been registered under the Securities Act of 1933, as amended (the “Securities Act”), commenced on June 6, 2013, expired on July 5, 2013 and closed on July 10, 2013. Based on information provided by Wells Fargo Bank, N.A., the exchange agent for the exchange offer, as of the expiration date 100% of the Notes were validly tendered for exchange. The notes are jointly and severally guaranteed unconditionally on a senior secured basis by all of the Company’s existing and future wholly-owned domestic subsidiaries, with certain exceptions. All guarantor subsidiaries are 100% owned by the Company. | |||||||||||||||||
TRAC Intermodal LLC | |||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Company | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Parent | Subsidiaries | Subsidiaries | |||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | — | $ | 5,939 | $ | 2,169 | $ | — | $ | 8,108 | |||||||
Accounts receivable, net | — | 130,992 | 595 | — | 131,587 | ||||||||||||
Net investment in direct finance leases | — | 23,910 | — | (8,651 | ) | 15,259 | |||||||||||
Leasing equipment, net of accumulated depreciation | — | 1,402,814 | 12,653 | — | 1,415,467 | ||||||||||||
Goodwill | — | 251,907 | — | — | 251,907 | ||||||||||||
Affiliate and intercompany receivable | — | 678 | 5 | (5 | ) | 678 | |||||||||||
Intercompany interest receivable | 4,217 | — | — | (4,217 | ) | — | |||||||||||
Intercompany note receivable | 300,000 | — | — | (300,000 | ) | — | |||||||||||
Investment in subsidiary | 544,608 | 4,947 | — | (549,555 | ) | — | |||||||||||
Other assets | — | 43,769 | 275 | — | 44,044 | ||||||||||||
Total assets | $ | 848,825 | $ | 1,864,956 | $ | 15,697 | $ | (862,428 | ) | $ | 1,867,050 | ||||||
Liabilities and member’s interest | |||||||||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 4,217 | $ | 57,717 | $ | 16 | $ | — | $ | 61,950 | |||||||
Intercompany payable | — | 5 | — | (5 | ) | — | |||||||||||
Intercompany note payable | — | 300,000 | — | (300,000 | ) | — | |||||||||||
Intercompany interest payable | — | 4,217 | — | (4,217 | ) | — | |||||||||||
Intercompany lease payable | — | — | 8,651 | (8,651 | ) | — | |||||||||||
Deferred income taxes, net | — | 109,172 | 2,083 | — | 111,255 | ||||||||||||
Debt and capital lease obligations | 300,000 | 849,237 | — | — | 1,149,237 | ||||||||||||
Total liabilities | 304,217 | 1,320,348 | 10,750 | (312,873 | ) | 1,322,442 | |||||||||||
Total member’s interest | 544,608 | 544,608 | 4,947 | (549,555 | ) | 544,608 | |||||||||||
Total liabilities and member’s interest | $ | 848,825 | $ | 1,864,956 | $ | 15,697 | $ | (862,428 | ) | $ | 1,867,050 | ||||||
TRAC Intermodal LLC | |||||||||||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||
and Comprehensive Income | |||||||||||||||||
For The Three Months Ended March 31, 2015 | |||||||||||||||||
Company | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Parent | Subsidiaries | Subsidiaries | |||||||||||||||
Total revenue | $ | — | $ | 168,029 | $ | 789 | $ | (63 | ) | $ | 168,755 | ||||||
Direct operating expenses | — | 84,941 | 10 | — | 84,951 | ||||||||||||
Selling, general and administrative expenses | — | 21,134 | 142 | — | 21,276 | ||||||||||||
Depreciation expense | — | 17,758 | 143 | — | 17,901 | ||||||||||||
Provision for doubtful accounts | — | 2,072 | — | — | 2,072 | ||||||||||||
Impairment of leasing equipment | — | 1,433 | — | — | 1,433 | ||||||||||||
Loss on modification and extinguishment of debt and capital lease obligations | — | 39 | — | — | 39 | ||||||||||||
Interest expense | 8,250 | 22,097 | 63 | (8,313 | ) | 22,097 | |||||||||||
Interest income | (8,250 | ) | (1 | ) | — | 8,250 | (1 | ) | |||||||||
Equity in earnings of subsidiary | (12,161 | ) | (305 | ) | — | 12,466 | — | ||||||||||
Other income, net | — | (554 | ) | — | — | (554 | ) | ||||||||||
Total (income) expense | (12,161 | ) | 148,614 | 358 | 12,403 | 149,214 | |||||||||||
Income (loss) before provision for income taxes | 12,161 | 19,415 | 431 | (12,466 | ) | 19,541 | |||||||||||
Provision for income taxes | — | 7,254 | 126 | — | 7,380 | ||||||||||||
Net income | 12,161 | 12,161 | 305 | (12,466 | ) | 12,161 | |||||||||||
Unrealized loss on derivative instruments, net of tax of $704 | — | (1,084 | ) | — | — | (1,084 | ) | ||||||||||
Derivative loss reclassified into earnings, net of tax of ($2,123) | — | 3,293 | — | — | 3,293 | ||||||||||||
Foreign currency translation loss, net of tax of $237 | — | (407 | ) | — | — | (407 | ) | ||||||||||
Total other comprehensive income | — | 1,802 | — | — | 1,802 | ||||||||||||
Total comprehensive income | $ | 12,161 | $ | 13,963 | $ | 305 | $ | (12,466 | ) | $ | 13,963 | ||||||
TRAC Intermodal LLC | |||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
For The Three Months Ended March 31, 2015 | |||||||||||||||||
Company | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Parent | Subsidiaries | Subsidiaries | |||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | 26,678 | $ | (50 | ) | $ | 373 | $ | 27,001 | ||||||
Investing activities: | |||||||||||||||||
Proceeds from sale of leasing equipment | — | 6,500 | — | — | 6,500 | ||||||||||||
Collections on net investment in direct finance leases, net of interest earned | — | 1,598 | — | (373 | ) | 1,225 | |||||||||||
Purchase of leasing equipment | — | (12,158 | ) | — | — | (12,158 | ) | ||||||||||
Purchase of fixed assets | — | (3,299 | ) | — | — | (3,299 | ) | ||||||||||
Net cash used in investing activities | — | (7,359 | ) | — | (373 | ) | (7,732 | ) | |||||||||
Financing activities: | |||||||||||||||||
Proceeds from long-term debt | — | 54,000 | — | — | 54,000 | ||||||||||||
Repayments of long-term debt | — | (69,064 | ) | — | — | (69,064 | ) | ||||||||||
Repurchase of indirect parent shares from employees | — | — | — | — | — | ||||||||||||
Net cash used in financing activities | — | (15,064 | ) | — | — | (15,064 | ) | ||||||||||
Effect of changes in exchange rates on cash and cash equivalents | — | (353 | ) | — | — | (353 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | — | 3,902 | (50 | ) | — | 3,852 | |||||||||||
Cash and cash equivalents, beginning of period | — | 2,037 | 2,219 | — | 4,256 | ||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 5,939 | $ | 2,169 | $ | — | $ | 8,108 | |||||||
TRAC Intermodal LLC | |||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Company | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Parent | Subsidiaries | Subsidiaries | |||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2,037 | $ | 2,219 | $ | — | $ | 4,256 | |||||||
Accounts receivable, net | — | 134,765 | 311 | — | 135,076 | ||||||||||||
Net investment in direct finance leases | — | 25,176 | — | (8,961 | ) | 16,215 | |||||||||||
Leasing equipment, net of accumulated depreciation | — | 1,424,112 | 12,797 | — | 1,436,909 | ||||||||||||
Goodwill | — | 251,907 | — | — | 251,907 | ||||||||||||
Affiliate and intercompany receivable | — | 704 | 8 | (8 | ) | 704 | |||||||||||
Intercompany interest receivable | 12,467 | — | — | (12,467 | ) | — | |||||||||||
Intercompany note receivable | 300,000 | — | — | (300,000 | ) | — | |||||||||||
Investment in subsidiary | 530,398 | 4,642 | — | (535,040 | ) | — | |||||||||||
Other assets | — | 40,966 | 284 | — | 41,250 | ||||||||||||
Total assets | $ | 842,865 | $ | 1,884,309 | $ | 15,619 | $ | (856,476 | ) | $ | 1,886,317 | ||||||
Liabilities and member’s interest | |||||||||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 12,467 | $ | 76,705 | $ | 58 | $ | — | $ | 89,230 | |||||||
Intercompany payable | — | 8 | — | (8 | ) | — | |||||||||||
Intercompany note payable | — | 300,000 | — | (300,000 | ) | — | |||||||||||
Intercompany interest payable | — | 12,467 | — | (12,467 | ) | — | |||||||||||
Intercompany lease payable | — | — | 8,961 | (8,961 | ) | — | |||||||||||
Deferred income taxes, net | — | 100,509 | 1,958 | — | 102,467 | ||||||||||||
Debt and capital lease obligations | 300,000 | 864,222 | — | — | 1,164,222 | ||||||||||||
Total liabilities | 312,467 | 1,353,911 | 10,977 | (321,436 | ) | 1,355,919 | |||||||||||
Total member’s interest | 530,398 | 530,398 | 4,642 | (535,040 | ) | 530,398 | |||||||||||
Total liabilities and member’s interest | $ | 842,865 | $ | 1,884,309 | $ | 15,619 | $ | (856,476 | ) | $ | 1,886,317 | ||||||
TRAC Intermodal LLC | |||||||||||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||
and Comprehensive Income | |||||||||||||||||
For The Three Months Ended March 31, 2014 | |||||||||||||||||
Company | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Parent | Subsidiaries | Subsidiaries | |||||||||||||||
Total revenue | $ | — | $ | 138,950 | $ | 774 | $ | (73 | ) | $ | 139,651 | ||||||
Direct operating expenses | — | 66,823 | 10 | — | 66,833 | ||||||||||||
Selling, general and administrative expenses | — | 18,444 | 125 | — | 18,569 | ||||||||||||
Depreciation expense | — | 18,337 | 167 | — | 18,504 | ||||||||||||
Provision for doubtful accounts | — | 3,457 | — | — | 3,457 | ||||||||||||
Impairment of leasing equipment | — | 1,126 | — | — | 1,126 | ||||||||||||
Loss on modification and extinguishment of debt and capital lease obligations | — | 22 | — | — | 22 | ||||||||||||
Interest expense | 8,250 | 22,216 | 73 | (8,323 | ) | 22,216 | |||||||||||
Interest income | (8,250 | ) | (24 | ) | — | 8,250 | (24 | ) | |||||||||
Equity in earnings of subsidiary | (5,474 | ) | (224 | ) | — | 5,698 | — | ||||||||||
Other income, net | — | (382 | ) | — | — | (382 | ) | ||||||||||
Total (income) expense | (5,474 | ) | 129,795 | 375 | 5,625 | 130,321 | |||||||||||
Income (loss) before provision for income taxes | 5,474 | 9,155 | 399 | (5,698 | ) | 9,330 | |||||||||||
Provision for income taxes | — | 3,681 | 175 | — | 3,856 | ||||||||||||
Net income | 5,474 | 5,474 | 224 | (5,698 | ) | 5,474 | |||||||||||
Unrealized loss on derivative instruments, net of tax of $89 | — | (136 | ) | — | — | (136 | ) | ||||||||||
Derivative loss reclassified into earnings, net of tax of ($1,814) | — | 2,792 | — | — | 2,792 | ||||||||||||
Foreign currency translation loss, net of tax of $130 | — | (207 | ) | — | — | (207 | ) | ||||||||||
Total other comprehensive income | — | 2,449 | — | — | 2,449 | ||||||||||||
Total comprehensive income | $ | 5,474 | $ | 7,923 | $ | 224 | $ | (5,698 | ) | $ | 7,923 | ||||||
TRAC Intermodal LLC | |||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
For The Three Months Ended March 31, 2014 | |||||||||||||||||
Company | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Parent | Subsidiaries | Subsidiaries | |||||||||||||||
Net cash provided by operating activities | $ | — | $ | 21,800 | $ | 777 | $ | 374 | $ | 22,951 | |||||||
Investing activities: | |||||||||||||||||
Proceeds from sale of leasing equipment | — | 6,042 | — | — | 6,042 | ||||||||||||
Collections on net investment in direct finance leases, net of interest earned | — | 1,561 | — | (374 | ) | 1,187 | |||||||||||
Purchase of leasing equipment | — | (15,777 | ) | — | — | (15,777 | ) | ||||||||||
Purchase of fixed assets | — | (631 | ) | — | — | (631 | ) | ||||||||||
Net cash used in investing activities | — | (8,805 | ) | — | (374 | ) | (9,179 | ) | |||||||||
Financing activities: | |||||||||||||||||
Proceeds from long-term debt | — | 22,000 | — | — | 22,000 | ||||||||||||
Repayments of long-term debt | — | (40,744 | ) | — | — | (40,744 | ) | ||||||||||
Repurchase of indirect parent shares from employees | — | (585 | ) | — | — | (585 | ) | ||||||||||
Net cash used in financing activities | — | (19,329 | ) | — | — | (19,329 | ) | ||||||||||
Effect of changes in exchange rates on cash and cash equivalents | — | (172 | ) | 1 | — | (171 | ) | ||||||||||
Net (decrease) increase in cash and cash equivalents | — | (6,506 | ) | 778 | — | (5,728 | ) | ||||||||||
Cash and cash equivalents, beginning of period | — | 11,308 | 535 | — | 11,843 | ||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 4,802 | $ | 1,313 | $ | — | $ | 6,115 | |||||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events | |
Subsequent Events | 16. Subsequent Events |
On May 1, 2015, the Company entered into an agreement to lease 4,272 marine chassis from one of its shipping line customers. These chassis will be contributed to a West Coast pool on behalf of the shipping line. Approximately half of the units will be leased for a three year term which commenced on May 1, 2015. The remaining units may be returned to the shipping line at any time during the lease period. Unit rental rates vary depending on specified groups of chassis. Aggregate annual lease payments are estimated to be $3.5 million assuming all units remain on lease for the three-year term. | |
The Company has evaluated all significant activities through the time of filing these financial statements with the SEC and has concluded that no additional subsequent events have occurred that would require recognition in the Consolidated Financial Statements or disclosure in the notes to the Consolidated Financial Statements. | |
Leasing_Activity_Tables
Leasing Activity (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Leasing Activity | |||||||||||
Schedule of the estimated future minimum lease revenue | |||||||||||
2015 | $ | 52,248 | |||||||||
2016 | 46,602 | ||||||||||
2017 | 32,746 | ||||||||||
2018 | 4,951 | ||||||||||
2019 | 3,904 | ||||||||||
Thereafter | 135 | ||||||||||
$ | 140,586 | ||||||||||
Schedule of receivables under direct finance leases collectible through 2022 | |||||||||||
Total Lease | Unearned | Net Lease | |||||||||
Receivables | Lease Income | Receivables | |||||||||
2015 | $ | 3,561 | $ | 1,097 | $ | 2,464 | |||||
2016 | 3,877 | 1,146 | 2,731 | ||||||||
2017 | 10,354 | 403 | 9,951 | ||||||||
2018 | 95 | 12 | 83 | ||||||||
2019 | 9 | 8 | 1 | ||||||||
Thereafter | 45 | 16 | 29 | ||||||||
$ | 17,941 | $ | 2,682 | $ | 15,259 | ||||||
Leasing_Equipment_Tables
Leasing Equipment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Leasing Equipment | ||||||||
Summary of leasing equipment | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Total leasing equipment | $ | 1,828,329 | $ | 1,837,317 | ||||
Less accumulated depreciation | (412,862 | ) | (400,408 | ) | ||||
Leasing equipment, net of accumulated depreciation | $ | 1,415,467 | $ | 1,436,909 | ||||
Borrowings_Tables
Borrowings (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Borrowings | ||||||||
Summary of the Company's borrowings | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Senior Secured 11% Notes | $ | 300,000 | $ | 300,000 | ||||
ABL Facility | 760,000 | 759,000 | ||||||
Loans Payable CIMC | 16,352 | 16,950 | ||||||
Capital lease obligations | 72,885 | 88,272 | ||||||
Total debt | 1,149,237 | 1,164,222 | ||||||
Less current maturities | (23,439 | ) | (30,546 | ) | ||||
Long-term debt, less current maturities | $ | 1,125,798 | $ | 1,133,676 | ||||
Derivatives_and_Hedging_Activi1
Derivatives and Hedging Activities (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||
Derivatives and Hedging Activities | ||||||||||||||||||||||||||||
Schedule of interest rate derivative designated as a cash flow hedge | ||||||||||||||||||||||||||||
Notional | Effective | Maturity | Floating | Fixed Leg | Fair | |||||||||||||||||||||||
Hedged Item | Amount | Date | Date | Rate | Interest Rate | Value Gain(a) | ||||||||||||||||||||||
ABL Facility | $ | 300,000 | Jan-13 | Aug-17 | 1M LIBOR | 0.756 | % | $ | 248 | |||||||||||||||||||
(a)This interest rate derivative is recorded in Other Assets in the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||
Schedule of total interest rate derivatives to fix floating interest rates on a portion of the borrowings under debt facilities | ||||||||||||||||||||||||||||
Total Current | Weighted-Average | Weighted-Average | ||||||||||||||||||||||||||
Notional | Fixed Leg | Remaining Term | ||||||||||||||||||||||||||
Amount | Interest Rate | |||||||||||||||||||||||||||
March 31, 2015 | $ | 300,000 | 0.756 | % | 2.28 years | |||||||||||||||||||||||
December 31, 2014 | $ | 300,000 | 0.756 | % | 2.53 years | |||||||||||||||||||||||
Schedule of the net of tax effect of the Company's cash flow hedge derivative instruments | ||||||||||||||||||||||||||||
Effective Portion | Ineffective Portion | |||||||||||||||||||||||||||
Derivative | Change in | Classification | Loss | Classification | (Gain) Loss | |||||||||||||||||||||||
Instruments | Unrealized | of Loss | Reclassified | of Loss | Recognized | |||||||||||||||||||||||
Loss | Reclassified | from OCI | Recognized | Directly in | ||||||||||||||||||||||||
Recognized in | from OCI | into Income | Directly in | Income on | ||||||||||||||||||||||||
OCI on | into Income | (b) | Income on | Derivative | ||||||||||||||||||||||||
Derivatives (a) | Derivative | (c) | ||||||||||||||||||||||||||
Three Months ended March 31, 2015 | Interest rate derivatives | $ | (1,353 | ) | Interest expense | $ | 3,562 | Interest expense | $ | (20 | ) | |||||||||||||||||
Three Months ended March 31, 2014 | Interest rate derivatives | $ | (409 | ) | Interest expense | $ | 3,065 | Interest expense | $ | (21 | ) | |||||||||||||||||
(a)This represents the change in the fair market value of the Company’s interest rate derivatives, net of tax, offset by the amount of actual cash paid related to the net settlements of the interest rate derivatives, net of tax. | ||||||||||||||||||||||||||||
(a) | This represents the amount of actual cash paid, net of tax, related to the net settlements of the interest rate derivatives plus any effective amortization of deferred losses on the Company’s terminated derivative, net of tax. | |||||||||||||||||||||||||||
Three Months ended | ||||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
Net settlements of interest rate derivative, net of tax of ($174) and ($177), respectively | $ | 269 | $ | 273 | ||||||||||||||||||||||||
Amortization of terminated derivatives, net of tax of ($2,123) and ($1,814), respectively | 3,293 | 2,792 | ||||||||||||||||||||||||||
$ | 3,562 | $ | 3,065 | |||||||||||||||||||||||||
(c)Amount impacting income not related to AOCI reclassification. | ||||||||||||||||||||||||||||
Schedule of the amount of actual cash paid, net of tax, related to the net settlements of the interest rate derivatives plus any effective amortization of deferred losses on the Company's terminated derivatives, net of tax | ||||||||||||||||||||||||||||
Three Months ended | ||||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
Net settlements of interest rate derivative, net of tax of ($174) and ($177), respectively | $ | 269 | $ | 273 | ||||||||||||||||||||||||
Amortization of terminated derivatives, net of tax of ($2,123) and ($1,814), respectively | 3,293 | 2,792 | ||||||||||||||||||||||||||
$ | 3,562 | $ | 3,065 | |||||||||||||||||||||||||
Summary of deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||||||||||||||||||||||||||
Hedged | Original | Effective | Maturity | Fixed | Termination | Deferred | Un- | Amount of | Amount | |||||||||||||||||||
Maximum | De-designation | Loss | amortized | Deferred Loss | of Deferred | |||||||||||||||||||||||
Notional | Upon | Deferred | Amortized | Loss Expected | ||||||||||||||||||||||||
(Gain) or | (including | to be | ||||||||||||||||||||||||||
Loss at | Accelerated | Amortized | ||||||||||||||||||||||||||
March 31, | Amortization) | Over | ||||||||||||||||||||||||||
into Interest | the Next | |||||||||||||||||||||||||||
Expense for the | Twelve | |||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||
Ended March 31, | ||||||||||||||||||||||||||||
Item | Amount | Date | Date | Rate % | Date | Termination | 2015 | 2015 | 2014 | Months | ||||||||||||||||||
(a) | $ | 60,852 | Jul-07 | Oct-17 | 5.299 | % | Dec-07 | $ | 1,853 | $ | (8 | ) | $ | — | $ | 4 | $ | (4 | ) | |||||||||
(a) | 200,000 | Jul-07 | Jul-17 | 5.307 | % | Dec-07 | 6,412 | (24 | ) | 1 | 18 | (11 | ) | |||||||||||||||
(a) | 163,333 | Jul-07 | Jul-14 | 5.58 | % | Dec-07 | 3,773 | — | — | 89 | — | |||||||||||||||||
(b) | 150,000 | Jul-08 | Oct-14 | 5.512 | % | Jul-08 | 1,711 | — | — | 14 | — | |||||||||||||||||
(b) | 150,000 | Oct-07 | Oct-14 | 5.512 | % | Jul-08 | 3,498 | — | — | 46 | — | |||||||||||||||||
(b) | 480,088 | Oct-14 | Oct-17 | 5.436 | % | Jul-08 | 1,711 | 1,387 | 179 | — | 621 | |||||||||||||||||
(b) | 480,088 | Oct-14 | Oct-17 | 5.436 | % | Jul-08 | 1,526 | 1,194 | 186 | — | 655 | |||||||||||||||||
(a) | 163,333 | Nov-07 | Jul-14 | 4.605 | % | Jul-08 | 2,082 | — | — | (59 | ) | — | ||||||||||||||||
(b) | 332,525 | Oct-07 | Oct-14 | 4.743 | % | Jul-08 | 7,641 | — | — | (19 | ) | — | ||||||||||||||||
(a) | 58,238 | Nov-07 | Oct-17 | 4.305 | % | Jul-08 | 862 | (89 | ) | (14 | ) | (15 | ) | (56 | ) | |||||||||||||
(a) | 193,333 | Nov-07 | Jul-17 | 4.365 | % | Jul-08 | 3,265 | (282 | ) | (58 | ) | (60 | ) | (186 | ) | |||||||||||||
(c) | 37,000 | Sep-07 | Jul-14 | 5.526 | % | Mar-11 | 3,122 | — | — | 150 | — | |||||||||||||||||
(d) | 53,286 | Jul-08 | Oct-17 | 3.989 | % | Aug-12 | 2,048 | 442 | 93 | 133 | 300 | |||||||||||||||||
(d) | 181,667 | Jul-08 | Jul-17 | 4.033 | % | Aug-12 | 8,538 | 1,581 | 406 | 612 | 1,119 | |||||||||||||||||
(d) | 43,333 | Jul-08 | Jul-14 | 4.328 | % | Aug-12 | 11,033 | — | — | 1,462 | — | |||||||||||||||||
(d) | 211,567 | Jul-08 | Oct-14 | 4.147 | % | Aug-12 | 17,002 | — | — | 1,648 | — | |||||||||||||||||
(d) | 150,000 | Jul-08 | Oct-14 | 4 | % | Aug-12 | 5,080 | — | — | 583 | — | |||||||||||||||||
(d) | 427,407 | Oct-14 | Oct-17 | 5.174 | % | Aug-12 | 46,372 | 38,461 | 4,623 | — | 16,724 | |||||||||||||||||
Total | $ | 127,529 | $ | 42,662 | $ | 5,416 | $ | 4,606 | $ | 19,162 | ||||||||||||||||||
(a)This hedged item is referred to as Chassis Funding II Floating Rate Asset-Backed Notes, Series 2007-1 | ||||||||||||||||||||||||||||
(b)This hedged item is referred to as Chassis Funding Floating Rate Asset-Backed Notes, Series 2007-1 | ||||||||||||||||||||||||||||
(c)This hedged item is referred to as Chassis Financing Program, Term Loan Agreement—Portfolio C | ||||||||||||||||||||||||||||
(d)This hedged item is referred to as Chassis Financing Program, Portfolio A | ||||||||||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||
Schedule of the components of AOCI, net of tax | ||||||||||||||
Unrealized | Net | Foreign | Total | |||||||||||
Gain (Loss) | Derivative | Currency | Accumulated | |||||||||||
on | Loss to be | Translation | Other | |||||||||||
Derivative | Reclassified | Comprehensive | ||||||||||||
Instruments | into | Loss | ||||||||||||
Earnings | ||||||||||||||
Balance, December 31, 2014 | $ | 1,121 | $ | (29,201 | ) | $ | (537 | ) | $ | (28,617 | ) | |||
Current-period other comprehensive income (loss) | (1,084 | ) | 3,293 | (407 | ) | 1,802 | ||||||||
Balance, March 31, 2015 | $ | 37 | $ | (25,908 | ) | $ | (944 | ) | $ | (26,815 | ) | |||
Schedule of the effects of reclassifications out of AOCI and into the Consolidated Statements of Operations | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
Income Statement Line Item | 2015 | 2014 | ||||||||||||
Total loss in AOCI reclassifications for previously unrealized net losses on terminated derivatives | Interest expense | $ | 5,416 | $ | 4,606 | |||||||||
Related income tax benefit | Benefit for income taxes | (2,123 | ) | (1,814 | ) | |||||||||
Net loss reclassified out of AOCI | $ | 3,293 | $ | 2,792 | ||||||||||
ShareBased_Payment_Tables
Share-Based Payment (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Share-Based Payment | ||||||||||
Summary of the restricted shares of SCT Chassis, Inc. | ||||||||||
Non-vested Shares | Shares | Weighted- | Fair Value | |||||||
Average | of Shares | |||||||||
Grant Date | at Grant | |||||||||
Fair Value | Date | |||||||||
per share | ||||||||||
Non-vested at January 1, 2015 | 180,217 | $ | 6.71 | $ | 1,209 | |||||
Granted | 14,702 | 11.08 | 163 | |||||||
Forfeited | — | — | — | |||||||
Vested | (128,741 | ) | 7.01 | (902 | ) | |||||
Non-vested at March 31, 2015 | 66,178 | $ | 7.1 | $ | 470 | |||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Segment and Geographic Information | ||||||||||||||
Schedule of segment information | ||||||||||||||
Three Months ended March 31, 2015 | Marine | Domestic | Other | Total | ||||||||||
Market | Market | |||||||||||||
segment | segment | |||||||||||||
Term revenue | $ | 9,166 | $ | 3,947 | $ | — | $ | 13,113 | ||||||
Pool revenue | 109,357 | 38,219 | — | 147,576 | ||||||||||
All other revenue | 3,895 | 2,318 | 1,853 | 8,066 | ||||||||||
Total revenue | $ | 122,418 | $ | 44,484 | $ | 1,853 | $ | 168,755 | ||||||
Adjusted EBITDA | 42,216 | 27,158 | (7,446 | ) | 61,928 | |||||||||
Depreciation expense | 9,654 | 6,783 | 1,464 | 17,901 | ||||||||||
Net investment in direct finance leases | 15,055 | 204 | — | 15,259 | ||||||||||
Leasing equipment | 780,895 | 491,587 | 142,985 | 1,415,467 | ||||||||||
Capital expenditures for long-lived assets | 2,151 | 10,007 | 3,299 | 15,457 | ||||||||||
Three Months ended March 31, 2014 | Marine | Domestic | Other | Total | ||||||||||
Market | Market | |||||||||||||
segment | segment | |||||||||||||
Term revenue | $ | 10,149 | $ | 5,154 | $ | — | $ | 15,303 | ||||||
Pool revenue | 80,778 | 35,288 | — | 116,066 | ||||||||||
All other revenue | 4,959 | 2,372 | 951 | 8,282 | ||||||||||
Total revenue | $ | 95,886 | $ | 42,814 | $ | 951 | $ | 139,651 | ||||||
Adjusted EBITDA | 32,888 | 25,472 | (6,163 | ) | 52,197 | |||||||||
Depreciation expense | 9,021 | 7,634 | 1,849 | 18,504 | ||||||||||
Net investment in direct finance leases | 21,518 | 150 | — | 21,668 | ||||||||||
Leasing equipment | 749,753 | 462,392 | 174,893 | 1,387,038 | ||||||||||
Capital expenditures for long-lived assets | 14,910 | 867 | 631 | 16,408 | ||||||||||
Schedule of reconciliations of Adjusted EBITDA to the Company's net loss | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Adjusted EBITDA | $ | 61,928 | $ | 52,197 | ||||||||||
Principal collections on direct finance leases, net of interest earned | (1,225 | ) | (1,187 | ) | ||||||||||
Non-cash share-based compensation | (247 | ) | (218 | ) | ||||||||||
Interest expense | (22,097 | ) | (22,216 | ) | ||||||||||
Depreciation expense | (17,901 | ) | (18,504 | ) | ||||||||||
Impairment of leasing equipment | (1,433 | ) | (1,126 | ) | ||||||||||
Loss on modification and extinguishment of debt and capital lease obligations | (39 | ) | (22 | ) | ||||||||||
Other income, net | 554 | 382 | ||||||||||||
Interest income | 1 | 24 | ||||||||||||
Income before provision for income taxes | 19,541 | 9,330 | ||||||||||||
Provision for income taxes | 7,380 | 3,856 | ||||||||||||
Net income | $ | 12,161 | $ | 5,474 | ||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||
Schedule of valuation of the Company's financial assets and liabilities measured at fair value on a recurring basis | ||||||||||||||
Fair Value | Fair Value Measurement as of | |||||||||||||
as of | March 31, 2015 using | |||||||||||||
March 31, | Fair Value Hierarchy | |||||||||||||
2015 | Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 8,108 | $ | 8,108 | $ | — | $ | — | ||||||
Derivative instruments | 248 | — | 248 | — | ||||||||||
Fair Value | Fair Value Measurement as of | |||||||||||||
as of | December 31, 2014 using | |||||||||||||
December 31, | Fair Value Hierarchy | |||||||||||||
2014 | Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 4,256 | $ | 4,256 | $ | — | $ | — | ||||||
Derivative instruments | 2,015 | — | 2,015 | — | ||||||||||
Schedule of carrying amounts and fair values of the Company's financial instruments | ||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||
Carrying | Fair Value of | Carrying | Fair Value of | |||||||||||
Amount of | Asset | Amount of | Asset | |||||||||||
Asset | (Liability) | Asset | (Liability) | |||||||||||
(Liability) | (Liability) | |||||||||||||
Derivative Instrument | $ | 248 | $ | 248 | $ | 2,015 | $ | 2,015 | ||||||
Total debt and capital lease obligations | $ | (1,149,237 | ) | $ | (1,179,454 | ) | $ | (1,164,222 | ) | $ | (1,186,862 | ) | ||
Guarantor_Financial_Informatio1
Guarantor Financial Information (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Guarantor Financial Information | |||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Company | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Parent | Subsidiaries | Subsidiaries | |||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | — | $ | 5,939 | $ | 2,169 | $ | — | $ | 8,108 | |||||||
Accounts receivable, net | — | 130,992 | 595 | — | 131,587 | ||||||||||||
Net investment in direct finance leases | — | 23,910 | — | (8,651 | ) | 15,259 | |||||||||||
Leasing equipment, net of accumulated depreciation | — | 1,402,814 | 12,653 | — | 1,415,467 | ||||||||||||
Goodwill | — | 251,907 | — | — | 251,907 | ||||||||||||
Affiliate and intercompany receivable | — | 678 | 5 | (5 | ) | 678 | |||||||||||
Intercompany interest receivable | 4,217 | — | — | (4,217 | ) | — | |||||||||||
Intercompany note receivable | 300,000 | — | — | (300,000 | ) | — | |||||||||||
Investment in subsidiary | 544,608 | 4,947 | — | (549,555 | ) | — | |||||||||||
Other assets | — | 43,769 | 275 | — | 44,044 | ||||||||||||
Total assets | $ | 848,825 | $ | 1,864,956 | $ | 15,697 | $ | (862,428 | ) | $ | 1,867,050 | ||||||
Liabilities and member’s interest | |||||||||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 4,217 | $ | 57,717 | $ | 16 | $ | — | $ | 61,950 | |||||||
Intercompany payable | — | 5 | — | (5 | ) | — | |||||||||||
Intercompany note payable | — | 300,000 | — | (300,000 | ) | — | |||||||||||
Intercompany interest payable | — | 4,217 | — | (4,217 | ) | — | |||||||||||
Intercompany lease payable | — | — | 8,651 | (8,651 | ) | — | |||||||||||
Deferred income taxes, net | — | 109,172 | 2,083 | — | 111,255 | ||||||||||||
Debt and capital lease obligations | 300,000 | 849,237 | — | — | 1,149,237 | ||||||||||||
Total liabilities | 304,217 | 1,320,348 | 10,750 | (312,873 | ) | 1,322,442 | |||||||||||
Total member’s interest | 544,608 | 544,608 | 4,947 | (549,555 | ) | 544,608 | |||||||||||
Total liabilities and member’s interest | $ | 848,825 | $ | 1,864,956 | $ | 15,697 | $ | (862,428 | ) | $ | 1,867,050 | ||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Company | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Parent | Subsidiaries | Subsidiaries | |||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2,037 | $ | 2,219 | $ | — | $ | 4,256 | |||||||
Accounts receivable, net | — | 134,765 | 311 | — | 135,076 | ||||||||||||
Net investment in direct finance leases | — | 25,176 | — | (8,961 | ) | 16,215 | |||||||||||
Leasing equipment, net of accumulated depreciation | — | 1,424,112 | 12,797 | — | 1,436,909 | ||||||||||||
Goodwill | — | 251,907 | — | — | 251,907 | ||||||||||||
Affiliate and intercompany receivable | — | 704 | 8 | (8 | ) | 704 | |||||||||||
Intercompany interest receivable | 12,467 | — | — | (12,467 | ) | — | |||||||||||
Intercompany note receivable | 300,000 | — | — | (300,000 | ) | — | |||||||||||
Investment in subsidiary | 530,398 | 4,642 | — | (535,040 | ) | — | |||||||||||
Other assets | — | 40,966 | 284 | — | 41,250 | ||||||||||||
Total assets | $ | 842,865 | $ | 1,884,309 | $ | 15,619 | $ | (856,476 | ) | $ | 1,886,317 | ||||||
Liabilities and member’s interest | |||||||||||||||||
Accounts payable, accrued expenses and other liabilities | $ | 12,467 | $ | 76,705 | $ | 58 | $ | — | $ | 89,230 | |||||||
Intercompany payable | — | 8 | — | (8 | ) | — | |||||||||||
Intercompany note payable | — | 300,000 | — | (300,000 | ) | — | |||||||||||
Intercompany interest payable | — | 12,467 | — | (12,467 | ) | — | |||||||||||
Intercompany lease payable | — | — | 8,961 | (8,961 | ) | — | |||||||||||
Deferred income taxes, net | — | 100,509 | 1,958 | — | 102,467 | ||||||||||||
Debt and capital lease obligations | 300,000 | 864,222 | — | — | 1,164,222 | ||||||||||||
Total liabilities | 312,467 | 1,353,911 | 10,977 | (321,436 | ) | 1,355,919 | |||||||||||
Total member’s interest | 530,398 | 530,398 | 4,642 | (535,040 | ) | 530,398 | |||||||||||
Total liabilities and member’s interest | $ | 842,865 | $ | 1,884,309 | $ | 15,619 | $ | (856,476 | ) | $ | 1,886,317 | ||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | Condensed Consolidating Statements of Operations | ||||||||||||||||
and Comprehensive Income | |||||||||||||||||
For The Three Months Ended March 31, 2015 | |||||||||||||||||
Company | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Parent | Subsidiaries | Subsidiaries | |||||||||||||||
Total revenue | $ | — | $ | 168,029 | $ | 789 | $ | (63 | ) | $ | 168,755 | ||||||
Direct operating expenses | — | 84,941 | 10 | — | 84,951 | ||||||||||||
Selling, general and administrative expenses | — | 21,134 | 142 | — | 21,276 | ||||||||||||
Depreciation expense | — | 17,758 | 143 | — | 17,901 | ||||||||||||
Provision for doubtful accounts | — | 2,072 | — | — | 2,072 | ||||||||||||
Impairment of leasing equipment | — | 1,433 | — | — | 1,433 | ||||||||||||
Loss on modification and extinguishment of debt and capital lease obligations | — | 39 | — | — | 39 | ||||||||||||
Interest expense | 8,250 | 22,097 | 63 | (8,313 | ) | 22,097 | |||||||||||
Interest income | (8,250 | ) | (1 | ) | — | 8,250 | (1 | ) | |||||||||
Equity in earnings of subsidiary | (12,161 | ) | (305 | ) | — | 12,466 | — | ||||||||||
Other income, net | — | (554 | ) | — | — | (554 | ) | ||||||||||
Total (income) expense | (12,161 | ) | 148,614 | 358 | 12,403 | 149,214 | |||||||||||
Income (loss) before provision for income taxes | 12,161 | 19,415 | 431 | (12,466 | ) | 19,541 | |||||||||||
Provision for income taxes | — | 7,254 | 126 | — | 7,380 | ||||||||||||
Net income | 12,161 | 12,161 | 305 | (12,466 | ) | 12,161 | |||||||||||
Unrealized loss on derivative instruments, net of tax of $704 | — | (1,084 | ) | — | — | (1,084 | ) | ||||||||||
Derivative loss reclassified into earnings, net of tax of ($2,123) | — | 3,293 | — | — | 3,293 | ||||||||||||
Foreign currency translation loss, net of tax of $237 | — | (407 | ) | — | — | (407 | ) | ||||||||||
Total other comprehensive income | — | 1,802 | — | — | 1,802 | ||||||||||||
Total comprehensive income | $ | 12,161 | $ | 13,963 | $ | 305 | $ | (12,466 | ) | $ | 13,963 | ||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||
and Comprehensive Income | |||||||||||||||||
For The Three Months Ended March 31, 2014 | |||||||||||||||||
Company | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Parent | Subsidiaries | Subsidiaries | |||||||||||||||
Total revenue | $ | — | $ | 138,950 | $ | 774 | $ | (73 | ) | $ | 139,651 | ||||||
Direct operating expenses | — | 66,823 | 10 | — | 66,833 | ||||||||||||
Selling, general and administrative expenses | — | 18,444 | 125 | — | 18,569 | ||||||||||||
Depreciation expense | — | 18,337 | 167 | — | 18,504 | ||||||||||||
Provision for doubtful accounts | — | 3,457 | — | — | 3,457 | ||||||||||||
Impairment of leasing equipment | — | 1,126 | — | — | 1,126 | ||||||||||||
Loss on modification and extinguishment of debt and capital lease obligations | — | 22 | — | — | 22 | ||||||||||||
Interest expense | 8,250 | 22,216 | 73 | (8,323 | ) | 22,216 | |||||||||||
Interest income | (8,250 | ) | (24 | ) | — | 8,250 | (24 | ) | |||||||||
Equity in earnings of subsidiary | (5,474 | ) | (224 | ) | — | 5,698 | — | ||||||||||
Other income, net | — | (382 | ) | — | — | (382 | ) | ||||||||||
Total (income) expense | (5,474 | ) | 129,795 | 375 | 5,625 | 130,321 | |||||||||||
Income (loss) before provision for income taxes | 5,474 | 9,155 | 399 | (5,698 | ) | 9,330 | |||||||||||
Provision for income taxes | — | 3,681 | 175 | — | 3,856 | ||||||||||||
Net income | 5,474 | 5,474 | 224 | (5,698 | ) | 5,474 | |||||||||||
Unrealized loss on derivative instruments, net of tax of $89 | — | (136 | ) | — | — | (136 | ) | ||||||||||
Derivative loss reclassified into earnings, net of tax of ($1,814) | — | 2,792 | — | — | 2,792 | ||||||||||||
Foreign currency translation loss, net of tax of $130 | — | (207 | ) | — | — | (207 | ) | ||||||||||
Total other comprehensive income | — | 2,449 | — | — | 2,449 | ||||||||||||
Total comprehensive income | $ | 5,474 | $ | 7,923 | $ | 224 | $ | (5,698 | ) | $ | 7,923 | ||||||
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows | ||||||||||||||||
For The Three Months Ended March 31, 2015 | |||||||||||||||||
Company | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Parent | Subsidiaries | Subsidiaries | |||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | 26,678 | $ | (50 | ) | $ | 373 | $ | 27,001 | ||||||
Investing activities: | |||||||||||||||||
Proceeds from sale of leasing equipment | — | 6,500 | — | — | 6,500 | ||||||||||||
Collections on net investment in direct finance leases, net of interest earned | — | 1,598 | — | (373 | ) | 1,225 | |||||||||||
Purchase of leasing equipment | — | (12,158 | ) | — | — | (12,158 | ) | ||||||||||
Purchase of fixed assets | — | (3,299 | ) | — | — | (3,299 | ) | ||||||||||
Net cash used in investing activities | — | (7,359 | ) | — | (373 | ) | (7,732 | ) | |||||||||
Financing activities: | |||||||||||||||||
Proceeds from long-term debt | — | 54,000 | — | — | 54,000 | ||||||||||||
Repayments of long-term debt | — | (69,064 | ) | — | — | (69,064 | ) | ||||||||||
Repurchase of indirect parent shares from employees | — | — | — | — | — | ||||||||||||
Net cash used in financing activities | — | (15,064 | ) | — | — | (15,064 | ) | ||||||||||
Effect of changes in exchange rates on cash and cash equivalents | — | (353 | ) | — | — | (353 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | — | 3,902 | (50 | ) | — | 3,852 | |||||||||||
Cash and cash equivalents, beginning of period | — | 2,037 | 2,219 | — | 4,256 | ||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 5,939 | $ | 2,169 | $ | — | $ | 8,108 | |||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||
For The Three Months Ended March 31, 2014 | |||||||||||||||||
Company | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||
Parent | Subsidiaries | Subsidiaries | |||||||||||||||
Net cash provided by operating activities | $ | — | $ | 21,800 | $ | 777 | $ | 374 | $ | 22,951 | |||||||
Investing activities: | |||||||||||||||||
Proceeds from sale of leasing equipment | — | 6,042 | — | — | 6,042 | ||||||||||||
Collections on net investment in direct finance leases, net of interest earned | — | 1,561 | — | (374 | ) | 1,187 | |||||||||||
Purchase of leasing equipment | — | (15,777 | ) | — | — | (15,777 | ) | ||||||||||
Purchase of fixed assets | — | (631 | ) | — | — | (631 | ) | ||||||||||
Net cash used in investing activities | — | (8,805 | ) | — | (374 | ) | (9,179 | ) | |||||||||
Financing activities: | |||||||||||||||||
Proceeds from long-term debt | — | 22,000 | — | — | 22,000 | ||||||||||||
Repayments of long-term debt | — | (40,744 | ) | — | — | (40,744 | ) | ||||||||||
Repurchase of indirect parent shares from employees | — | (585 | ) | — | — | (585 | ) | ||||||||||
Net cash used in financing activities | — | (19,329 | ) | — | — | (19,329 | ) | ||||||||||
Effect of changes in exchange rates on cash and cash equivalents | — | (172 | ) | 1 | — | (171 | ) | ||||||||||
Net (decrease) increase in cash and cash equivalents | — | (6,506 | ) | 778 | — | (5,728 | ) | ||||||||||
Cash and cash equivalents, beginning of period | — | 11,308 | 535 | — | 11,843 | ||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 4,802 | $ | 1,313 | $ | — | $ | 6,115 | |||||||
Description_of_the_Business_an1
Description of the Business and Basis of Presentation (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Jul. 12, 2012 |
segment | |||
item | |||
Description of the business and basis of presentation | |||
Number of industries in which the entity and its subsidiaries conduct business | 1 | ||
Number of reportable segments | 2 | ||
Debt and Capital Lease Obligations | $1,149,237 | $1,164,222 | $300,000 |
Debt Instrument, Interest Rate, Stated Percentage | 11.00% | ||
Interpool | |||
Description of the business and basis of presentation | |||
Percentage ownership of subsidiaries | 100.00% |
Leasing_Activity_Details
Leasing Activity (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |||
Future minimum lease revenue | |||
2015 | $52,248 | ||
2016 | 46,602 | ||
2017 | 32,746 | ||
2018 | 4,951 | ||
2019 | 3,904 | ||
Thereafter | 135 | ||
Total | 140,586 | ||
Total Lease Receivables | |||
2015 | 3,561 | ||
2016 | 3,877 | ||
2017 | 10,354 | ||
2018 | 95 | ||
2019 | 9 | ||
Thereafter | 45 | ||
Total | 17,941 | 19,271 | |
Unearned Lease Income | |||
2015 | 1,097 | ||
2016 | 1,146 | ||
2017 | 403 | ||
2018 | 12 | ||
2019 | 8 | ||
Thereafter | 16 | ||
Total | 2,682 | 3,056 | |
Net Lease Receivables | |||
2014 | 2,464 | ||
2016 | 2,731 | ||
2017 | 9,951 | ||
2018 | 83 | ||
2019 | 1 | ||
Thereafter | 29 | ||
Total | 15,259 | 16,215 | 21,668 |
Guaranteed and unguaranteed residual values | $8,776 | $8,778 |
Leasing_Equipment_Details
Leasing Equipment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |||
Leasing Equipment | |||
Total leasing equipment | $1,828,329 | $1,837,317 | |
Less accumulated depreciation | -412,862 | -400,408 | |
Leasing equipment, net of accumulated depreciation | 1,415,467 | 1,436,909 | 1,387,038 |
Assets recorded under capital leases | |||
Leasing equipment under capital leases | 149,143 | 182,688 | |
Accumulated depreciation under capital leases | $46,529 | $53,016 |
Impairment_of_Leasing_Equipmen1
Impairment of Leasing Equipment (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Impairment of Leasing Equipment | ||
Impairment of leasing equipment | $1,433 | $1,126 |
Capitalized_Software_Developme1
Capitalized Software Development Costs (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Capitalized Software Development Costs | |
Capitalized software development costs | $2,742 |
Estimated useful life of software | 7 years |
Borrowings_Details
Borrowings (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Feb. 28, 2015 | Jul. 12, 2012 | Aug. 09, 2012 |
Borrowings | ||||||
Total debt and capital lease obligations | $1,149,237 | $1,164,222 | $300,000 | |||
Less current maturities | -23,439 | -30,546 | ||||
Long-term debt, less current maturities | 1,125,798 | 1,133,676 | ||||
Interest rate (as a percent) | 11.00% | |||||
Weighted average interest rate (as a percent) | 5.72% | 6.05% | 5.78% | |||
ABL Facility | ||||||
Borrowings | ||||||
Total debt and capital lease obligations | 760,000 | 759,000 | ||||
Senior Secured 11% Notes | ||||||
Borrowings | ||||||
Total debt and capital lease obligations | 300,000 | 300,000 | ||||
Interest rate (as a percent) | 11.00% | 11.00% | ||||
Loans Payable CIMC | ||||||
Borrowings | ||||||
Total debt and capital lease obligations | 16,352 | 16,950 | ||||
Capital lease obligations | ||||||
Borrowings | ||||||
Total debt and capital lease obligations | 72,885 | 88,272 | ||||
Exercise of purchase options from maturing capital leases | $11,806 |
Derivatives_and_Hedging_Activi2
Derivatives and Hedging Activities (Details) (Interest rate swap, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Jan. 10, 2013 |
Derivative and Hedging Activities | ||
Variable rate debt hedged | $300,000 | |
Fixed interest rate payable (as a percent) | 0.76% | |
LIBOR | ||
Derivative and Hedging Activities | ||
Maturity of reference rate for variable interest | 1 month | |
One month LIBOR interest rate (as a percent) | 0.18% |
Derivatives_and_Hedging_Activi3
Derivatives and Hedging Activities (Details 2) (Interest rate swap, USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Jan. 10, 2013 | Sep. 30, 2014 |
Derivative and Hedging Activities | ||||
Notional Amount | $300,000 | $300,000 | ||
Fixed Leg Interest Rate (as a percent) | 0.76% | |||
Weighted-Average Fixed Leg Interest Rate (as a percent) | 0.76% | 0.76% | ||
Weighted-Average Remaining Term | 2 years 3 months 11 days | 2 years 6 months 11 days | ||
LIBOR | ||||
Derivative and Hedging Activities | ||||
Floating Rate, maturity | 1 month | |||
Designated as hedge | Cash flow hedge | ||||
Derivative and Hedging Activities | ||||
Notional Amount | 300,000 | |||
Floating Rate, maturity | 1 month | |||
Fixed Leg Interest Rate (as a percent) | 0.76% | 5.17% | ||
Designated as hedge | Cash flow hedge | Other Asset | ||||
Derivative and Hedging Activities | ||||
Fair Value Gain | $248 |
Derivatives_and_Hedging_Activi4
Derivatives and Hedging Activities (Details 3) (Interest rate swap, Designated as hedge, Cash flow hedge, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net of tax effect of cash flow hedge derivative instruments | ||
Change in Unrealized Loss Recognized in OCI on Derivatives, Effective Portion | ($1,353) | ($409) |
Interest expenses | ||
Net of tax effect of cash flow hedge derivative instruments | ||
Loss Reclassified from OCI into Income, Effective Portion | 3,562 | 3,065 |
(Gain) Loss Recognized Directly in Income on Derivative, Ineffective Portion | -20 | -21 |
Net settlements of interest rate derivatives, net of tax | 269 | 273 |
Net settlements of interest rate derivatives, tax | -174 | -177 |
Amortization of terminated derivatives, net of tax | 3,293 | 2,792 |
Amortization of terminated derivatives, tax | ($2,123) | ($1,814) |
Derivatives_and_Hedging_Activi5
Derivatives and Hedging Activities (Details 4) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Jan. 10, 2013 | Sep. 30, 2014 |
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Net interest settlements on active interest rate derivatives expected to be amortized over the next 12 months, net of tax | $800 | |||
Net interest settlements on active interest rate derivatives expected to be amortized over the next 12 months, tax | 517 | |||
Deferred losses on the Company's terminated derivatives expected to be amortized over the next twelve months, net of tax | 11,637 | |||
Deferred losses on the Company's terminated derivatives expected to be amortized over the next twelve months, tax | 7,525 | |||
Interest rate swap | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Fixed Rate % | 0.76% | |||
Interest rate swap | Designated as hedge | Cash flow hedge | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 427,407 | |||
Fixed Rate % | 0.76% | 5.17% | ||
Deferred Loss Upon Termination | 46,372 | |||
Unamortized Deferred (Gain) Loss | 38,461 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | 4,623 | |||
Amount of Deferred (Gain) Loss Expected to be Amortized over the Next 12 Months | 16,724 | |||
Interest rate swap | Designated as hedge | Cash flow hedge | Terminated derivative at fixed rate of 5.307%, original maturity of Jul-2017 | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 60,852 | |||
Fixed Rate % | 5.30% | |||
Deferred Loss Upon Termination | 1,853 | |||
Unamortized Deferred (Gain) Loss | -8 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | 4 | |||
Amount of Deferred (Gain) Loss Expected to be Amortized over the Next 12 Months | -4 | |||
Interest rate swap | Designated as hedge | Cash flow hedge | Terminated derivative at fixed rate of 5.58%, original maturity of Jul-2014 | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 200,000 | |||
Fixed Rate % | 5.31% | |||
Deferred Loss Upon Termination | 6,412 | |||
Unamortized Deferred (Gain) Loss | -24 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | 1 | 18 | ||
Amount of Deferred (Gain) Loss Expected to be Amortized over the Next 12 Months | -11 | |||
Interest rate swap | Designated as hedge | Cash flow hedge | Terminated derivative at fixed rate of 5.512%, original maturity of Oct-2014, one | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 163,333 | |||
Fixed Rate % | 5.58% | |||
Deferred Loss Upon Termination | 3,773 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | 89 | |||
Interest rate swap | Designated as hedge | Cash flow hedge | Terminated derivative at fixed rate of 5.512%, original maturity of Oct-2014, two | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 150,000 | |||
Fixed Rate % | 5.51% | |||
Deferred Loss Upon Termination | 1,711 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | 14 | |||
Interest rate swap | Designated as hedge | Cash flow hedge | Terminated derivative at fixed rate of 5.436%, original maturity of Oct-2017, one | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 150,000 | |||
Fixed Rate % | 5.51% | |||
Deferred Loss Upon Termination | 3,498 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | 46 | |||
Interest rate swap | Designated as hedge | Cash flow hedge | Terminated derivative at fixed rate of 5.436%, original maturity of Oct-2017, two | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 480,088 | |||
Fixed Rate % | 5.44% | |||
Deferred Loss Upon Termination | 1,711 | |||
Unamortized Deferred (Gain) Loss | 1,387 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | 179 | |||
Amount of Deferred (Gain) Loss Expected to be Amortized over the Next 12 Months | 621 | |||
Interest rate swap | Designated as hedge | Cash flow hedge | Terminated derivative at fixed rate of 4.605%, original maturity of Jul-2014 | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 480,088 | |||
Fixed Rate % | 5.44% | |||
Deferred Loss Upon Termination | 1,526 | |||
Unamortized Deferred (Gain) Loss | 1,194 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | 186 | |||
Amount of Deferred (Gain) Loss Expected to be Amortized over the Next 12 Months | 655 | |||
Interest rate swap | Designated as hedge | Cash flow hedge | Terminated derivative at fixed rate of 4.743%, original maturity of Oct-2014 | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 163,333 | |||
Fixed Rate % | 4.61% | |||
Deferred Loss Upon Termination | 2,082 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | -59 | |||
Interest rate swap | Designated as hedge | Cash flow hedge | Terminated derivative at fixed rate of 4.305%, original maturity of Oct-2017 | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 332,525 | |||
Fixed Rate % | 4.74% | |||
Deferred Loss Upon Termination | 7,641 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | -19 | |||
Interest rate swap | Designated as hedge | Cash flow hedge | Terminated derivative at fixed rate of 4.365%, original maturity of Jul-2017 | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 58,238 | |||
Fixed Rate % | 4.31% | |||
Deferred Loss Upon Termination | 862 | |||
Unamortized Deferred (Gain) Loss | -89 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | -14 | -15 | ||
Amount of Deferred (Gain) Loss Expected to be Amortized over the Next 12 Months | -56 | |||
Interest rate swap | Designated as hedge | Cash flow hedge | Terminated derivative at fixed rate of 5.526%, original maturity of Jul-2014 | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 193,333 | |||
Fixed Rate % | 4.37% | |||
Deferred Loss Upon Termination | 3,265 | |||
Unamortized Deferred (Gain) Loss | -282 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | -58 | -60 | ||
Amount of Deferred (Gain) Loss Expected to be Amortized over the Next 12 Months | -186 | |||
Interest rate swap | Designated as hedge | Cash flow hedge | Terminated derivative at fixed rate of 3.989%, original maturity of Oct-2017 | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 37,000 | |||
Fixed Rate % | 5.53% | |||
Deferred Loss Upon Termination | 3,122 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | 150 | |||
Interest rate swap | Designated as hedge | Cash flow hedge | Terminated derivative at fixed rate of 4.033%, original maturity of Jul-2017 | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 53,286 | |||
Fixed Rate % | 3.99% | |||
Deferred Loss Upon Termination | 2,048 | |||
Unamortized Deferred (Gain) Loss | 442 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | 93 | 133 | ||
Amount of Deferred (Gain) Loss Expected to be Amortized over the Next 12 Months | 300 | |||
Interest rate swap | Designated as hedge | Cash flow hedge | Terminated derivative at fixed rate of 4.328%, original maturity of Jul-2014 | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 181,667 | |||
Fixed Rate % | 4.03% | |||
Deferred Loss Upon Termination | 8,538 | |||
Unamortized Deferred (Gain) Loss | 1,581 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | 406 | 612 | ||
Amount of Deferred (Gain) Loss Expected to be Amortized over the Next 12 Months | 1,119 | |||
Interest rate swap | Designated as hedge | Cash flow hedge | Terminated derivative at fixed rate of 4.147%, original maturity of Oct-2014 | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 43,333 | |||
Fixed Rate % | 4.33% | |||
Deferred Loss Upon Termination | 11,033 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | 1,462 | |||
Interest rate swap | Designated as hedge | Cash flow hedge | Terminated derivative at fixed rate of 4%, original maturity of Oct-2014 | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 211,567 | |||
Fixed Rate % | 4.15% | |||
Deferred Loss Upon Termination | 17,002 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | 1,648 | |||
Interest rate swap | Designated as hedge | Cash flow hedge | Terminated derivative at fixed rate of 5.174%, original maturity of Oct-2017 | ||||
Deferred (gains) and losses for the terminated interest rate derivatives and the related amortization into interest expense | ||||
Original Maximum Notional Amount | 150,000 | |||
Fixed Rate % | 4.00% | |||
Deferred Loss Upon Termination | 5,080 | |||
Amount of Deferred (Gain) Loss Amortized (including Accelerated Amortization) into Interest Expense | $583 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Lease Commitments | |
Minimum rental commitment under operating leases | $35,101 |
Equipment Leased | |
Purchase Commitments | |
Capital expenditures | $8,332 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Taxes | ||
Provision for income taxes | $7,380 | $3,856 |
Effective tax rate (as a percent) | 37.80% | 41.30% |
U.S. federal tax rate (as a percent) | 35.00% |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Changes in accumulated other comprehensive (loss) by component: | ||
Balance at the beginning of the period | ($28,617) | |
Current-period other comprehensive income (loss) | 1,802 | 2,449 |
Balance at the end of the period | -26,815 | |
Unrealized Gain (Loss) on Derivative Instruments | ||
Changes in accumulated other comprehensive (loss) by component: | ||
Balance at the beginning of the period | 1,121 | |
Current-period other comprehensive income (loss) | -1,084 | |
Balance at the end of the period | 37 | |
Net Derivative Loss to be Reclassified into Earnings | ||
Changes in accumulated other comprehensive (loss) by component: | ||
Balance at the beginning of the period | -29,201 | |
Current-period other comprehensive income (loss) | 3,293 | |
Balance at the end of the period | -25,908 | |
Foreign Currency Translation | ||
Changes in accumulated other comprehensive (loss) by component: | ||
Balance at the beginning of the period | -537 | |
Current-period other comprehensive income (loss) | -407 | |
Balance at the end of the period | ($944) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement Totals | ||
Interest expense | $22,097 | $22,216 |
Provision for income taxes | 7,380 | 3,856 |
Net loss reclassified out of AOCI | -12,161 | -5,474 |
AOCI reclassifications | Net Derivative Loss to be Reclassified into Earnings | ||
Income Statement Totals | ||
Interest expense | 5,416 | 4,606 |
Provision for income taxes | -2,123 | -1,814 |
Net loss reclassified out of AOCI | $3,293 | $2,792 |
ShareBased_Payments_Details
Share-Based Payments (Details) (Restricted shares, SCT Chassis, Inc., USD $) | 0 Months Ended | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jan. 01, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Jan. 01, 2015 |
shareholder | ||||
Restricted shares | SCT Chassis, Inc. | ||||
Shares | ||||
Non-vested at the beginning of the period (in shares) | 180,217 | 180,217 | ||
Granted (in shares) | 14,702 | 14,702 | ||
Vested (in shares) | -128,741 | |||
Non-vested at the end of the period (in shares) | 66,178 | |||
Weighted-Average Grant Date Fair Value per share | ||||
Non-vested at the beginning of the period (in dollars per share) | $6.71 | $6.71 | ||
Granted (in dollars per share) | $11.08 | $11.08 | ||
Vested (in dollars per share) | $7.01 | |||
Non-vested at the end of the period (in dollars per share) | $7.10 | |||
Fair Value of Shares at Grant Date | ||||
Non-vested at the beginning of the period (in dollars) | $1,209 | $1,209 | ||
Granted (in dollars) | 163 | 163 | ||
Vested (in dollars) | -902 | |||
Non-vested at the end of the period (in dollars) | 470 | |||
Share-based payments, additional information | ||||
Share-based compensation expense | 247 | 218 | ||
Unrecognized compensation expense | 346 | |||
Remaining weighted-average vesting period over which the total unrecognized compensation cost is expected to be recognized | 1 year 2 months 12 days | |||
Additional grants (in shares) | 1,096,954 | |||
Share-based compensation expense recorded related to shares to be granted on achievement of certain conditions | $0 | |||
Number of key employees to whom restricted shares were granted | 2 | 2 |
ShareBased_Payment_Details_2
Share-Based Payment (Details 2) | 3 Months Ended |
Mar. 31, 2015 | |
Share-Based Payment | |
Number of shares repurchased | 0 |
Segment_and_Geographic_Informa2
Segment and Geographic Information (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
segment | |||
Segment and Geographic Information | |||
Number of operating and reportable segments | 2 | ||
Segment information | |||
Total revenues | $168,755 | $139,651 | |
Adjusted EBITDA | 61,928 | 52,197 | |
Depreciation expense | 17,901 | 18,504 | |
Net investment in direct finance leases | 15,259 | 21,668 | 16,215 |
Leasing equipment | 1,415,467 | 1,387,038 | 1,436,909 |
Capital expenditures for long-lived assets | 15,457 | 16,408 | |
Term revenue | |||
Segment information | |||
Total revenues | 13,113 | 15,303 | |
Pool revenue | |||
Segment information | |||
Total revenues | 147,576 | 116,066 | |
All other revenue | |||
Segment information | |||
Total revenues | 8,066 | 8,282 | |
Operating segments | Marine Market segment | |||
Segment information | |||
Total revenues | 122,418 | 95,886 | |
Adjusted EBITDA | 42,216 | 32,888 | |
Depreciation expense | 9,654 | 9,021 | |
Net investment in direct finance leases | 15,055 | 21,518 | |
Leasing equipment | 780,895 | 749,753 | |
Capital expenditures for long-lived assets | 2,151 | 14,910 | |
Operating segments | Marine Market segment | Term revenue | |||
Segment information | |||
Total revenues | 9,166 | 10,149 | |
Operating segments | Marine Market segment | Pool revenue | |||
Segment information | |||
Total revenues | 109,357 | 80,778 | |
Operating segments | Marine Market segment | All other revenue | |||
Segment information | |||
Total revenues | 3,895 | 4,959 | |
Operating segments | Domestic Market segment | |||
Segment information | |||
Total revenues | 44,484 | 42,814 | |
Adjusted EBITDA | 27,158 | 25,472 | |
Depreciation expense | 6,783 | 7,634 | |
Net investment in direct finance leases | 204 | 150 | |
Leasing equipment | 491,587 | 462,392 | |
Capital expenditures for long-lived assets | 10,007 | 867 | |
Operating segments | Domestic Market segment | Term revenue | |||
Segment information | |||
Total revenues | 3,947 | 5,154 | |
Operating segments | Domestic Market segment | Pool revenue | |||
Segment information | |||
Total revenues | 38,219 | 35,288 | |
Operating segments | Domestic Market segment | All other revenue | |||
Segment information | |||
Total revenues | 2,318 | 2,372 | |
Other | |||
Segment information | |||
Total revenues | 1,853 | 951 | |
Adjusted EBITDA | -7,446 | -6,163 | |
Depreciation expense | 1,464 | 1,849 | |
Leasing equipment | 142,985 | 174,893 | |
Capital expenditures for long-lived assets | 3,299 | 631 | |
Other | All other revenue | |||
Segment information | |||
Total revenues | $1,853 | $951 |
Segment_and_Geographic_Informa3
Segment and Geographic Information (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reconciliations of the total measure of profit or loss to the Company's net income (loss) | ||
Adjusted EBITDA | $61,928 | $52,197 |
Principal collections on direct finance leases, net of interest earned | -1,225 | -1,187 |
Non-cash share-based compensation | -247 | -218 |
Interest expense | -22,097 | -22,216 |
Depreciation expense | -17,901 | -18,504 |
Impairment of leasing equipment | -1,433 | -1,126 |
Loss on modification and extinguishment of debt and capital lease obligations | -39 | -22 |
Other income, net | 554 | 382 |
Interest income | 1 | 24 |
Income before provision for income taxes | 19,541 | 9,330 |
Provision for income taxes | 7,380 | 3,856 |
Net income | $12,161 | $5,474 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Seacastle Inc. | |||
Related party transactions | |||
Management fees charged to related party | $31 | $24 | |
Net receivable from affiliates | 678 | 705 | |
Florida East Coast Railway | |||
Related party transactions | |||
Revenue from related party | 509 | 370 | |
SCT Chassis, Inc. | |||
Related party transactions | |||
Key employee receivable | $620 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Jul. 12, 2012 | Jan. 10, 2013 | Mar. 31, 2014 |
Debt | |||||
Variable interest rate debt | 479,610 | $479,334 | |||
Fixed rate debt | 669,627 | 684,888 | |||
Liabilities: | |||||
Total debt and capital lease obligations | -1,149,237 | -1,164,222 | -300,000 | ||
Fair Value | |||||
Liabilities: | |||||
Derivative instruments | 248 | 2,015 | |||
Total debt and capital lease obligations | -1,179,454 | -1,186,862 | |||
Reported Value Measurement | |||||
Liabilities: | |||||
Derivative instruments | 248 | 2,015 | |||
Total debt and capital lease obligations | -1,149,237 | -1,164,222 | |||
Interest rate swap | |||||
Derivative instruments | |||||
Maximum percentage of principal amount of debt for optional redemption with equity offering proceeds | 35.00% | ||||
Debt redemption price as percentage of principal amount, for optional redemption with equity offering proceeds | 111.00% | ||||
Debt | |||||
Variable rate debt effectively converted to fixed rate | 300,000 | ||||
Recurring | Fair Value | |||||
Assets: | |||||
Cash and cash equivalents | 8,108 | 4,256 | |||
Derivative instruments | 248 | 2,015 | |||
Recurring | Level 1 | |||||
Assets: | |||||
Cash and cash equivalents | 8,108 | 4,256 | |||
Recurring | Level 2 | |||||
Assets: | |||||
Derivative instruments | 248 | $2,015 |
Guarantor_Financial_Informatio2
Guarantor Financial Information (Details) (USD $) | 0 Months Ended | 3 Months Ended | |||||
In Thousands, unless otherwise specified | Jul. 05, 2013 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jul. 12, 2012 | Aug. 09, 2012 |
Condensed Consolidating Balance Sheet | |||||||
Interest rate (as a percent) | 11.00% | ||||||
Assets | |||||||
Cash and cash equivalents | 8,108 | $4,256 | $6,115 | $11,843 | |||
Accounts receivable, net | 131,587 | 135,076 | |||||
Net investment in direct finance leases | 15,259 | 16,215 | 21,668 | ||||
Leasing equipment, net of accumulated depreciation | 1,415,467 | 1,436,909 | 1,387,038 | ||||
Goodwill | 251,907 | 251,907 | |||||
Affiliate and intercompany receivable | 678 | 704 | |||||
Other assets | 44,044 | 41,250 | |||||
Total assets | 1,867,050 | 1,886,317 | |||||
Liabilities and member's interest | |||||||
Accounts payable, accrued expenses and other liabilities | 61,950 | 89,230 | |||||
Deferred income taxes, net | 111,255 | 102,467 | |||||
Debt and capital lease obligations | 1,149,237 | 1,164,222 | 300,000 | ||||
Total liabilities | 1,322,442 | 1,355,919 | |||||
Total member's interest | 544,608 | 530,398 | |||||
Total liabilities and member's interest | 1,867,050 | 1,886,317 | |||||
Senior Secured 11% Notes | |||||||
Condensed Consolidating Balance Sheet | |||||||
Interest rate (as a percent) | 11.00% | 11.00% | |||||
Liabilities and member's interest | |||||||
Debt and capital lease obligations | 300,000 | 300,000 | |||||
Senior Secured 11% Notes | Unregistered Original Notes | |||||||
Condensed Consolidating Balance Sheet | |||||||
Total principal amount of the Original Notes sold | 300,000 | ||||||
Percentage of principal amount of the outstanding Original Notes validly tendered under exchange offer | 100.00% | ||||||
Eliminations | |||||||
Assets | |||||||
Net investment in direct finance leases | -8,651 | -8,961 | |||||
Affiliate and intercompany receivable | -5 | -8 | |||||
Intercompany interest receivable | -4,217 | -12,467 | |||||
Intercompany note receivable | -300,000 | -300,000 | |||||
Investment in subsidiary | -549,555 | -535,040 | |||||
Total assets | -862,428 | -856,476 | |||||
Liabilities and member's interest | |||||||
Intercompany payable | -5 | -8 | |||||
Intercompany note payable | -300,000 | -300,000 | |||||
Intercompany interest payable | -4,217 | -12,467 | |||||
Intercompany lease payable | -8,651 | -8,961 | |||||
Total liabilities | -312,873 | -321,436 | |||||
Total member's interest | -549,555 | -535,040 | |||||
Total liabilities and member's interest | -862,428 | -856,476 | |||||
Guarantor Subsidiaries | |||||||
Condensed Consolidating Balance Sheet | |||||||
Percentage ownership of subsidiaries | 100.00% | ||||||
Issuer Parent | Reportable Legal Entities | |||||||
Assets | |||||||
Intercompany interest receivable | 4,217 | 12,467 | |||||
Intercompany note receivable | 300,000 | 300,000 | |||||
Investment in subsidiary | 544,608 | 530,398 | |||||
Total assets | 848,825 | 842,865 | |||||
Liabilities and member's interest | |||||||
Accounts payable, accrued expenses and other liabilities | 4,217 | 12,467 | |||||
Debt and capital lease obligations | 300,000 | 300,000 | |||||
Total liabilities | 304,217 | 312,467 | |||||
Total member's interest | 544,608 | 530,398 | |||||
Total liabilities and member's interest | 848,825 | 842,865 | |||||
Guarantor Subsidiaries | Reportable Legal Entities | |||||||
Assets | |||||||
Cash and cash equivalents | 5,939 | 2,037 | 4,802 | 11,308 | |||
Accounts receivable, net | 130,992 | 134,765 | |||||
Net investment in direct finance leases | 23,910 | 25,176 | |||||
Leasing equipment, net of accumulated depreciation | 1,402,814 | 1,424,112 | |||||
Goodwill | 251,907 | 251,907 | |||||
Affiliate and intercompany receivable | 678 | 704 | |||||
Investment in subsidiary | 4,947 | 4,642 | |||||
Other assets | 43,769 | 40,966 | |||||
Total assets | 1,864,956 | 1,884,309 | |||||
Liabilities and member's interest | |||||||
Accounts payable, accrued expenses and other liabilities | 57,717 | 76,705 | |||||
Intercompany payable | 5 | 8 | |||||
Intercompany note payable | 300,000 | 300,000 | |||||
Intercompany interest payable | 4,217 | 12,467 | |||||
Deferred income taxes, net | 109,172 | 100,509 | |||||
Debt and capital lease obligations | 849,237 | 864,222 | |||||
Total liabilities | 1,320,348 | 1,353,911 | |||||
Total member's interest | 544,608 | 530,398 | |||||
Total liabilities and member's interest | 1,864,956 | 1,884,309 | |||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||||
Assets | |||||||
Cash and cash equivalents | 2,169 | 2,219 | 1,313 | 535 | |||
Accounts receivable, net | 595 | 311 | |||||
Leasing equipment, net of accumulated depreciation | 12,653 | 12,797 | |||||
Affiliate and intercompany receivable | 5 | 8 | |||||
Other assets | 275 | 284 | |||||
Total assets | 15,697 | 15,619 | |||||
Liabilities and member's interest | |||||||
Accounts payable, accrued expenses and other liabilities | 16 | 58 | |||||
Intercompany lease payable | 8,651 | 8,961 | |||||
Deferred income taxes, net | 2,083 | 1,958 | |||||
Total liabilities | 10,750 | 10,977 | |||||
Total member's interest | 4,947 | 4,642 | |||||
Total liabilities and member's interest | 15,697 | $15,619 |
Guarantor_Financial_Informatio3
Guarantor Financial Information (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidating Statements of Operations and Comprehensive Income | ||
Total Revenue | $168,755 | $139,651 |
Direct operating expenses | 84,951 | 66,833 |
Selling, general and administrative expenses | 21,276 | 18,569 |
Depreciation expense | 17,901 | 18,504 |
Provision for doubtful accounts | 2,072 | 3,457 |
Impairment of leasing equipment | 1,433 | 1,126 |
Loss on modification and extinguishment of debt and capital lease obligations | 39 | 22 |
Interest expense | 22,097 | 22,216 |
Interest income | -1 | -24 |
Other income, net | -554 | -382 |
Total expenses | 149,214 | 130,321 |
Income before provision for income taxes | 19,541 | 9,330 |
Provision for income taxes | 7,380 | 3,856 |
Net income | 12,161 | 5,474 |
Unrealized loss on derivative instruments, net | -1,084 | -136 |
Derivative loss reclassified into earnings, net | 3,293 | 2,792 |
Foreign currency translation loss, net | -407 | -207 |
Total other comprehensive income | 1,802 | 2,449 |
Total comprehensive income | 13,963 | 7,923 |
Consolidated Statements of Comprehensive Income (Parenthetical) | ||
Unrealized loss on derivative instruments, net of tax of $704 | 704 | 89 |
Derivative loss reclassified into earnings, net | -2,123 | -1,814 |
Foreign currency translation loss, net | 237 | 130 |
Eliminations | ||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||
Total Revenue | -63 | -73 |
Interest expense | -8,313 | -8,323 |
Interest income | 8,250 | 8,250 |
Equity in earnings of subsidiary | 12,466 | 5,698 |
Total expenses | 12,403 | 5,625 |
Income before provision for income taxes | -12,466 | -5,698 |
Net income | -12,466 | -5,698 |
Total comprehensive income | -12,466 | -5,698 |
Issuer Parent | Reportable Legal Entities | ||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||
Interest expense | 8,250 | 8,250 |
Interest income | -8,250 | -8,250 |
Equity in earnings of subsidiary | -12,161 | -5,474 |
Total expenses | -12,161 | -5,474 |
Income before provision for income taxes | 12,161 | 5,474 |
Net income | 12,161 | 5,474 |
Total comprehensive income | 12,161 | 5,474 |
Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||
Total Revenue | 168,029 | 138,950 |
Direct operating expenses | 84,941 | 66,823 |
Selling, general and administrative expenses | 21,134 | 18,444 |
Depreciation expense | 17,758 | 18,337 |
Provision for doubtful accounts | 2,072 | 3,457 |
Impairment of leasing equipment | 1,433 | 1,126 |
Loss on modification and extinguishment of debt and capital lease obligations | 39 | 22 |
Interest expense | 22,097 | 22,216 |
Interest income | -1 | -24 |
Equity in earnings of subsidiary | -305 | -224 |
Other income, net | -554 | -382 |
Total expenses | 148,614 | 129,795 |
Income before provision for income taxes | 19,415 | 9,155 |
Provision for income taxes | 7,254 | 3,681 |
Net income | 12,161 | 5,474 |
Unrealized loss on derivative instruments, net | -1,084 | -136 |
Derivative loss reclassified into earnings, net | 3,293 | 2,792 |
Foreign currency translation loss, net | -407 | -207 |
Total other comprehensive income | 1,802 | 2,449 |
Total comprehensive income | 13,963 | 7,923 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Consolidating Statements of Operations and Comprehensive Income | ||
Total Revenue | 789 | 774 |
Direct operating expenses | 10 | 10 |
Selling, general and administrative expenses | 142 | 125 |
Depreciation expense | 143 | 167 |
Interest expense | 63 | 73 |
Total expenses | 358 | 375 |
Income before provision for income taxes | 431 | 399 |
Provision for income taxes | 126 | 175 |
Net income | 305 | 224 |
Total comprehensive income | $305 | $224 |
Guarantor_Financial_Informatio4
Guarantor Financial Information (Details 3) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidating Statement of Cash Flows | ||
Net cash (used in) provided by operating activities | $27,001 | $22,951 |
Investing activities: | ||
Proceeds from sale of leasing equipment | 6,500 | 6,042 |
Collections on net investment in direct finance leases, net of interest earned | 1,225 | 1,187 |
Purchase of leasing equipment | -12,158 | -15,777 |
Purchase of fixed assets | -3,299 | -631 |
Net cash used in investing activities | -7,732 | -9,179 |
Financing activities: | ||
Proceeds from debt | 54,000 | 22,000 |
Repayments of long-term debt | -69,064 | -40,744 |
Repurchase of indirect parent shares from employees | -585 | |
Net cash used in financing activities | -15,064 | -19,329 |
Effect of changes in exchange rates on cash and cash equivalents | -353 | -171 |
Net increase (decrease) in cash and cash equivalents | 3,852 | -5,728 |
Cash and cash equivalents, beginning of year | 4,256 | 11,843 |
Cash and cash equivalents, end of period | 8,108 | 6,115 |
Eliminations | ||
Condensed Consolidating Statement of Cash Flows | ||
Net cash (used in) provided by operating activities | 373 | 374 |
Investing activities: | ||
Collections on net investment in direct finance leases, net of interest earned | -373 | -374 |
Net cash used in investing activities | -373 | -374 |
Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Consolidating Statement of Cash Flows | ||
Net cash (used in) provided by operating activities | 26,678 | 21,800 |
Investing activities: | ||
Proceeds from sale of leasing equipment | 6,500 | 6,042 |
Collections on net investment in direct finance leases, net of interest earned | 1,598 | 1,561 |
Purchase of leasing equipment | -12,158 | -15,777 |
Purchase of fixed assets | -3,299 | -631 |
Net cash used in investing activities | -7,359 | -8,805 |
Financing activities: | ||
Proceeds from debt | 54,000 | 22,000 |
Repayments of long-term debt | -69,064 | -40,744 |
Repurchase of indirect parent shares from employees | -585 | |
Net cash used in financing activities | -15,064 | -19,329 |
Effect of changes in exchange rates on cash and cash equivalents | -353 | -172 |
Net increase (decrease) in cash and cash equivalents | 3,902 | -6,506 |
Cash and cash equivalents, beginning of year | 2,037 | 11,308 |
Cash and cash equivalents, end of period | 5,939 | 4,802 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Consolidating Statement of Cash Flows | ||
Net cash (used in) provided by operating activities | -50 | 777 |
Financing activities: | ||
Effect of changes in exchange rates on cash and cash equivalents | 1 | |
Net increase (decrease) in cash and cash equivalents | -50 | 778 |
Cash and cash equivalents, beginning of year | 2,219 | 535 |
Cash and cash equivalents, end of period | $2,169 | $1,313 |
Subsequent_Events_Details
Subsequent Events (Details) (Marine Chassis, Subsequent event, USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | 1-May-15 | 1-May-15 |
customer | item | |
item | ||
Marine Chassis | Subsequent event | ||
Subsequent events | ||
Number of chassis | 4,272 | 4,272 |
Number of customers | 1 | |
Lease term | 3 years | |
Aggregate estimated annual lease payments | $3.50 | $3.50 |