Contact: RAOUL J. WITTEVEEN
(212) 916-3261
NEWS FOR IMMEDIATE RELEASE
INTERPOOL, INC. REPORTS 2ND QUARTER RESULTS --
INCOME PER SHARE OF $0.31 AS COMPARED WITH $0.30 FOR PRIOR YEAR
PRINCETON, NJ, August 7, 1997 -- Interpool, Inc. (NYSE: IPX) reported today that
its 1997 second quarter income per share, before extraordinary and non-recurring
charges, was 31 cents per share (on a primary basis), as compared with 30 cents
(on a fully diluted basis) for the same period in 1996. Adjustments for full
dilution had no impact on 1997 second quarter income per share. Revenues during
the second quarter of 1997 were $39,784,000, up 9% from $36,431,000 in the
second quarter of 1996.
Interpool, Inc.'s income per share before extraordinary and non-recurring
charges rose to 61 cents per share (on a primary basis) in the first half of
1997 compared with 57 cents per share (on a fully diluted basis) for the same
period in 1996. Adjustments for full dilution had no material impact on income
per share in the first six months of 1997. Revenues for the six months ended
June 30, 1997 rose to $77,960,000, up 9% from $71,610,000 in the first six
months of 1996.
Martin Tuchman, Chairman and Chief Executive Officer, noted that in the past two
weeks the company has taken advantage of extraordinarily attractive debt markets
and has issued $225 million of ten year notes, comprised of $150 million of
7.35% Notes due 2007 and $75 million of 7.20% Notes due 2007. These Notes
represent Interpool's first issues of unsecured debt, recognizing the company's
growing credit strength. The net proceeds from these offerings are being used
for general corporate purposes, including repayment of secured indebtedness, the
purchase of equipment, possible future acquisitions and working capital.
Mr. Tuchman noted that Interpool has continued to expand its container and
chassis fleets by adding approximately 28,000 container TEUs
(twenty-foot-equivalent units) and 2,000 chassis units during the second
quarter, bringing the total container fleet to approximately 340,000 container
TEUs, and the chassis fleet to approximately 59,000 units, while maintaining
equipment utilization of 97%.
The company conducts its international container leasing business through its
subsidiary Interpool Limited, while the domestic intermodal equipment leasing
business is conducted by Interpool, Inc. and its other subsidiaries. During the
second quarter of 1997, the Interpool Limited international container division's
contribution to consolidated income before extraordinary and non-recurring items
rose to $7,636,000 from $7,255,000 in 1996, while the domestic intermodal
division's contribution decreased to $1,191,000 from $2,216,000. The domestic
intermodal division's second quarter contribution was reduced by $1.1 million of
interest expense, net of taxes, attributable to the $75 million of 9 7/8%
Capital Securities sold by the company in January, 1997. Revenues for the second
quarter of 1997 from the Interpool Limited international container division
increased to $21,756,000 from $19,979,000 in 1996, while revenues from the
domestic intermodal division rose to $18,028,000 from $16,452,000.
During the six months ended June 30, 1997, the Interpool Limited international
container division's contribution to consolidated income before extraordinary
and non- recurring items rose to $15,097,000 from $13,835,000 in 1996, while the
domestic intermodal division's contribution decreased to $2,824,000 from
$4,084,000. The domestic intermodal division's six month contribution was
reduced by $1.9 million of interest expense, net of taxes, attributable to the
$75 million of 9 7/8% Capital Securities sold by the company in January, 1997.
Revenues for the first half of 1997 from the Interpool Limited international
container division increased to $42,498,000 from $38,865,000 in 1996, while
revenues from the domestic intermodal division rose to $35,462,000 from
$32,745,000.
As previously announced, the company issued $75 million of 9 7/8% Capital
Securities during the first quarter while the company's 5 3/4% Cumulative
Convertible Preferred Stock was redeemed/converted during the same period. Also
during the first quarter the company split its Common Stock on a three-for-two
basis, resulting in 50% more shares available for trading and announced a 12.5%
dividend increase from the 1996 dividend rate, after giving effect to the stock
split. The current dividend rate is 15 cents per share on an annualized basis.
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.
***TABLE FOLLOWS***
INTERPOOL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except amounts per share)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30
1997 1996 1997 1996
------------ ------------ ------------ ------------
REVENUES (1) $39,784 $36,431 $77,960 $71,610
LEASE OPERATING AND ADMINISTRATIVE EXPENSES 9,352 6,957 17,695 14,519
DEPRECIATION AND AMORTIZATION OF
LEASING EQUIPMENT 8,691 8,048 17,222 15,985
GAIN ON SALE OF LEASING EQUIPMENT (427) (173) (756) (444)
------------ ------------ ------------ ------------
EARNINGS BEFORE INTEREST AND TAXES 22,168 21,599 43,799 41,550
INTEREST EXPENSE , NET 11,666 10,228 22,728 20,081
------------ ------------ ------------ ------------
INCOME BEFORE TAXES, EXTRAORDINARY LOSS 10,502 11,371 21,071 21,469
AND NON-RECURRING CHARGE
PROVISION FOR INCOME TAXES 1,675 1,900 3,150 3,550
INCOME BEFORE EXTRAORDINARY LOSS ------------ ------------ ------------ ------------
AND NON-RECURRING CHARGE 8,827 9,471 17,921 17,919
EXTRAORDINARY LOSS ON RETIREMENT OF DEBT,
NET OF APPLICABLE TAXES OF $225 - - 328 -
NON-RECURRING CHARGE - ACQUISITION OF
PREFERRED STOCK OF SUBSIDIARY (2) - - - 2,392
------------ ------------ ------------ ------------
NET INCOME $8,827 $9,471 $17,593 $15,527
============ ============ ============ ============
INCOME PER SHARE BEFORE EXTRAORDINARY
LOSS AND PREMIUM PAID ON REDEMPTION OF
PREFERRED STOCK IN 1997:
PRIMARY $0.31 $0.32 $0.61 $0.60
FULLY DILUTED NA $0.30 NA $0.57
EXTRAORDINARY LOSS ON RETIREMENT OF DEBT:
PRIMARY - - ($0.01) -
FULLY DILUTED - - - -
PREMIUM ON REDEMPTION OF PREFERRED STOCK: (3)
PRIMARY - - ($0.24) -
FULLY DILUTED - - - -
NET INCOME PER SHARE :
PRIMARY $0.31 $0.32 $0.36 $0.60
FULLY DILUTED NA $0.30 NA $0.57
WEIGHTED AVERAGE SHARES OUTSTANDING:
PRIMARY 28,444 26,592 27,968 26,468
FULLY DILUTED NA 31,472 NA 31,209
(1) Revenue in the second quarter of 1997 includes $1.5 million of successful legal claim recovery.
(2) 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
(3) Represents a special non-recurring charge to retained earnings during the first quarter of 1997 of $6,716 for the redemption of
5 3/4% Convertible Preferred Stock expressed as amount per share.