FOR IMMEDIATE RELEASE
CONTACT: Raoul J. Witteveen Anne Kazel/Cindy Lawrence
(212) 916-3261 Principal Communications
(212) 303-7600
INTERPOOL REPORTS FIRST QUARTER EARNINGS PER SHARE INCREASED 21%:
LEASING COMPANY REPORTS RECORD FLEET SIZE AND CONTINUED GROWTH
PRINCETON, NJ, MAY 9, 1996 -- Interpool, Inc. (NYSE:IPX) reported
today that 1996 first quarter net income per share on a fully diluted
basis was 41 cents vs. 34 cents in 1995. Revenues during the 1996
first quarter were $35,179,000, up from $27,695,000 in 1995.
Martin Tuchman, Chairman and Chief Executive Officer commented that
the company's net income per share was a record for a first quarterly
period, and was the direct result of the continued expansion of
Interpool's container and chassis fleets during 1995 and 1996. The
company added approximately 19,000 TEUs (twenty-foot-equivalent
units) to its container fleet during the first quarter, bringing the
total container fleet to approximately 260,000 container TEUs, in
addition to a chassis fleet of approximately 54,000 units.
During the first quarter of 1996, Interpool, Inc., acquired the
minority interest in the common stock of its subsidiary, Trac Lease,
Inc., and the outstanding shares of preferred stock of Trac Lease, in
exchange for preferred stock of Interpool. Interpool now owns 100%
of the equity of Trac Lease. The acquisition of Trac Lease preferred
stock and its related accrued, cumulative dividends resulted in a non-
recurring, non-cash charge in the amount of $2,392,000. Such charge
has no impact on net income per share because the effect of unpaid
dividends was included in the computation of net income per share in
prior periods.
On a comparable basis for on-going operations, income before non-
recurring charges rose 32% to $8,448,000 from $6,421,000 in the same
period a year ago. First quarter net income after the non-recurring
charge related to accrued cumulative dividends on the acquired
preferred stock of Trac Lease was $6,056,000. Mr. Tuchman noted that
Interpool continues to build shareholder value, with its book value
rising to over $257 million at the end of the first quarter.
Interpool, originally founded in 1968, is one of the world's leading
lessors of intermodal dry cargo containers and is the second largest
lessor of intermodal container chassis in the United States.
Interpool leases its containers and chassis to over 200 customers,
including nearly all of the world's 20 largest international
container shipping lines.
INTERPOOL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except amounts per share)
(Unaudited)
For the Three Months,
Ended March 31,
1996 1995
Revenues:
Container $19,305 $13,851
Chassis 12,099 10,947
Other 3,775 2,897
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TOTAL REVENUES 35,179 27,695
Lease Operating and Administrative Expenses 7,562 7,434
Depreciation and Amortization of Leasing
Equipment 7,937 5,985
Gain on Sale of Leasing Equipment (271) (431)
----- -----
Earnings Before Interest and Taxes 19,951 14,707
Interest Expense, Net 9,853 7,061
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Income Before Taxes and
Non-recurring Charge 10,098 7,646
Provision for Income Taxes 1,650 1,225
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Income Before Non-recurring Charge $ 8,448 $ 6,421
Non-recurring, non-cash charge related
to acquisition of Trac Lease, Inc.
Preferred Stock (1) 2,392 ---
------- -------
Net Income $ 6,056 $ 6,421
Income Per Share:
Primary $0.42 $0.37
Fully Diluted $0.41 $0.34
Weighted Average Shares Outstanding:
Primary 17,561 17,347
Fully Diluted 20,589 20,254
(1) Represents a non-cash and non-recurring charge for accumulated
dividends of its subsidiary, Trac Lease, Inc., which resulted from
the acquisition of the outstanding preferred stock of Trac Lease,
Inc. through the issuance of Interpool, Inc. preferred stock. Such
charge has no impact on net income per share because unpaid dividends
were included in the computation of net income per share in prior
periods.