| FOR: | INTERPOOL, INC. |
FOR IMMEDIATE RELEASE |
| CONTACT: | Raoul J. Witteveen President, Chief Operating Officer and Chief Financial Officer (212) 916-3261 |
| Morgen-Walke Associates: Gordon McCoun, Jennifer Angell Media contacts: Heather Fox (212) 850-5600 |
| Interpool 2Q00 | August 1, 2000 | Page 2 |
Revenues and pre-tax profits from Interpool’s containers and chassis operating leases showed strong growth year-over-year due to increases in the size of the fleets, and strong fleet utilization. Operating lease revenues grew 30% from last year, while pre-tax profits from operating leases increased by 48%. The Company’s container operating lease fleet at the end of the second quarter was approximately 340,000 TEUs (twenty-foot-equivalent units), up from 260,000 TEUs at the end of the 1999 second quarter and up from 315,000 TEUs at the end of the first quarter. The chassis operating lease fleet at June 30th was 93,000, up from 75,000 last year and up from 88,000 at the end of the previous quarter. Utilization of the container fleet for the second quarter was 99%, which was consistent with the first quarter. Chassis utilization continued to increase, and reached 97% in the second quarter, compared to 96% in the first quarter, and 95% in the fourth quarter of 1999. As previously disclosed on July 28, 2000, Interpool announced that it has entered into a definitive agreement with Transamerica Leasing, Inc., a subsidiary of Transamerica Finance Corporation and AEGON N.V. (NYSE:AEG), to acquire the North American intermodal division of Transamerica Leasing. The transaction is subject to receipt of financing and Hart Scott Rodino approval, and is expected to close before the end of 2000. The acquisition is expected to be accretive to earnings. Martin Tuchman, Chairman and Chief Executive Officer, commented: “We are extremely pleased with the performance of our operating lease business in the quarter. The Company’s container business continues to experience solid demand in Europe and the Far East, and orders for new equipment in the chassis business remain at strong levels. We are receiving very attractive leasing rates for our chassis, and the rates for containers are trending upwards. As we continue to grow our intermodal equipment fleet and operate our container and chassis leasing businesses near full capacity, we expect to see further sequential improvement in our margins for the balance of the year.” Mr. Tuchman continued: “Our recent acquisition announcement of Transamerica’s intermodal equipment business will allow the Company to further strengthen its successful chassis business. It will also enable us to further capitalize on the tremendous growth opportunities we see in Poolstat’s Internet-based business-to-business chassis management operation. Poolstat’s programs are well received, and have been instrumental in enabling us to establish new customer relationships for both chassis management as well as our leasing activities. With the acquisition, we are significantly expanding our customer base that can utilize our proprietary Poolstat software system, which should benefit our existing Poolstat customers by increasing the utilization of the Poolstat fleet and expanding the equipment base.” Mr. Tuchman concluded: “We expect that the positive trends we are seeing in our business, coupled with the contribution we expect to realize from the Transamerica operations, should drive solid earnings growth for the remainder of 2000 and beyond.” Interpool, originally founded in 1968, is one of the world’s leading lessors of cargo containers used in international trade. Interpool leases its containers and chassis to over 200 customers, including nearly all of the world’s 20 largest international container shipping lines. — MORE — |
| Interpool 2Q00 | August 1, 2000 | Page 3 |
This Press Release contains certain forward-looking statements regarding future circumstances. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements, including in particular the risks and uncertainties described in the company’s SEC filings. The company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof. Note: This press release and other press releases and information can be viewed at the Company’s website atwww.interpool.com. — TABLES FOLLOW — |
INTERPOOL, INC. |
| Three Months | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ended June 30, | Ended June 30, | ||||||||||||
| 2000 | 1999 | 2000 | 1999 | ||||||||||
| REVENUES | $66,093 | $44,154 | $127,245 | $100,725 | |||||||||
| LEASE OPERATING AND ADMINISTRATIVE EXPENSES | 21,507 | 11,634 | 42,217 | 30,523 | |||||||||
| DEPRECIATION AND AMORTIZATION OF LEASING EQUIPMENT | 16,262 | 12,872 | 31,714 | 25,551 | |||||||||
| OTHER (INCOME)/EXPENSE, NET | 348 | 438 | 711 | 834 | |||||||||
| EARNINGS BEFORE INTEREST AND TAXES | 27,976 | 19,210 | 52,603 | 43,817 | |||||||||
| INTEREST EXPENSE, NET | 15,649 | 12,634 | 29,283 | 27,485 | |||||||||
| INCOME BEFORE TAXES, CHANGE IN ACCOUNTING PRINCIPLE | |||||||||||||
| AND EXTRAORDINARY GAIN | 12,327 | 6,576 | 23,320 | 16,332 | |||||||||
| PROVISION FOR INCOME TAXES | 1,950 | 850 | 3,900 | 1,350 | |||||||||
| INCOME BEFORE CHANGE IN ACCOUNTING PRINCIPLE | |||||||||||||
| AND EXTRAORDINARY GAIN | $10,377 | $5,726 | $19,420 | $14,982 | |||||||||
| CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, | |||||||||||||
| NET OF APPLICABLE TAXES OF $440 (1) | — | — | 660 | — | |||||||||
| EXTRAORDINARY GAIN ON RETIREMENT OF DEBT, | |||||||||||||
| NET OF APPLICABLE TAXES OF $560 (2) | — | — | 840 | — | |||||||||
| NET INCOME | $10,377 | $5,726 | $20,920 | $14,982 | |||||||||
| INCOME PER SHARE BEFORE CUMULATIVE EFFECT OF CHANGE IN | |||||||||||||
| ACCOUNTING PRINCIPLE AND EXTRAORDINARY GAIN: | |||||||||||||
| BASIC | $0.38 | $0.21 | $0.71 | $0.54 | |||||||||
| DILUTED | $0.38 | $0.20 | $0.71 | $0.52 | |||||||||
| CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE (1): | |||||||||||||
| BASIC | N/A | N/A | $0.02 | N/A | |||||||||
| DILUTED | N/A | N/A | $0.02 | N/A | |||||||||
| EXTRAORDINARY GAIN ON RETIREMENT OF DEBT (2): | |||||||||||||
| BASIC | N/A | N/A | $0.03 | N/A | |||||||||
| DILUTED | �� | N/A | N/A | $0.03 | N/A | ||||||||
| NET INCOME PER SHARE: | |||||||||||||
| BASIC | $0.38 | $0.21 | $0.76 | $0.54 | |||||||||
| DILUTED | $0.38 | $0.20 | $0.76 | $0.52 | |||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING: | |||||||||||||
| BASIC | 27,421 | 27,575 | 27,421 | 27,571 | |||||||||
| DILUTED | 27,421 | 28,621 | 27,421 | 28,737 | |||||||||
| (1) | Represents a change in the Company’s accounting for its maintenance and repairs expense from an accrual to cash basis, in accordance with the recent Securities and Exchange Commission requirement. |
| (2) | Represents gain on retirement of $8.2 million face value of Interpool, Inc. 6-5/8% Notes due March 1, 2003 and $3.0 million face value of Interpool, Inc. 7.35% Notes due August 1, 2007. |
— TABLES CONTINUE — |
INTERPOOL, INC. |
| June 30, 2000 | December 31, 1999 | ||||
|---|---|---|---|---|---|
| ASSETS | |||||
| Cash and short-term investments and marketable securities | $82,142 | $207,626 | |||
| Accounts and notes receivable, net | 35,163 | 31,837 | |||
| Net investment in direct financing leases | 179,895 | 164,394 | |||
| Other receivables, net | 54,355 | 52,437 | |||
| Revenue producing equipment, net | 981,635 | 876,067 | |||
| Other investment securities | 37,323 | 33,359 | |||
| Other assets | 83,250 | 77,539 | |||
| TOTAL ASSETS | $1,453,763 | $1,443,259 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Accounts payable and accrued expenses | $49,669 | $47,907 | |||
| Income taxes | 22,934 | 18,995 | |||
| Deferred income | 601 | 618 | |||
| Debt and capital lease obligations | 983,129 | 998,228 | |||
| Capital securities | 75,000 | 75,000 | |||
| Minority interest | 1,620 | 1,144 | |||
| Stockholders’ equity | 320,810 | 301,367 | |||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $1,453,763 | $1,443,259 | |||
INTERPOOL, INC. |
| REVENUES | PRETAX PROFIT/(LOSS) | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended June 30, | Three Months Ended June 30, | ||||||||
| 2000 | 1999 | 2000 | 1999 | ||||||
| OPERATING LEASE BUSINESS | $49,676 | $38,300 | $13,232 | $8,972 | |||||
| FINANCE LEASE BUSINESS | 3,838 | 3,119 | 1,126 | 893 | |||||
| OTHER OPERATIONS | 12,309 | 2,600 | 378 | (627 | ) | ||||
| CORPORATE/INVESTMENT DIVISION | 3,119 | 3,034 | (2,409 | ) | (2,662 | ) | |||
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