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[INTERPOOL LETTERHEAD]
Contact: RAOUL J. WITTEVEEN
(212) 916-3261
NEWS FOR IMMEDIATE RELEASE
INTERPOOL, INC. REPORTS 1ST QUARTER INCOME PER SHARE OF
$0.28 AS COMPARED WITH $0.29 FOR PRIOR YEAR
PRINCETON, NJ, MAY 5, 1998 -- Interpool, Inc. (NYSE: IPX) reported today that
its 1998 first quarter net income per share was 28 cents (on a diluted basis),
as compared with income per share before extraordinary loss and premium paid on
redemption of preferred stock of 29 cents, for the same period in 1997. Revenues
during the first quarter of 1998 were $42,832,000, up 12% from $38,176,000 in
the first quarter of 1997.
At the end of the first quarter, the company's container fleet has grown to
approximately 435,000 container TEUs (twenty-foot-equivalent units) with
utilization at 99%, while the chassis fleet has grown to approximately 65,000
units, with utilization at 96%.
Notable events completed in the first quarter included the sale of $100 million
aggregate principal amount of 6-5/8% senior unsecured notes due 2003. With the
proceeds of the offering, the company repaid approximately $83 million of
outstanding borrowings under its revolving credit agreement and used the balance
for general corporate purposes.
Interpool 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
first quarter of 1998, the Interpool Limited international container division's
contribution to consolidated income increased to $7,614,000 from $7,461,000 for
the first quarter of 1997. The domestic intermodal division's contribution to
consolidated income was $496,000 during the first quarter of 1998, which
represented an increase from the fourth quarter 1997 loss of $485,000, but was
less than the prior year first quarter income contribution of $1,633,000.
Revenues for the first quarter of 1998 from the Interpool Limited international
container division increased to $21,778,000 while revenues from the domestic
intermodal division rose to $21,054,000.
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INTERPOOL 1Q98 5/5/98 PAGE 2
Martin Tuchman, Chairman and Chief Executive Officer, noted that the domestic
intermodal equipment leasing business was profitable in the first quarter of
1998, reflecting the benefits of the company's focus in the second half of 1997
on building its domestic intermodal equipment leasing business, with substantial
emphasis on chassis leasing and management.
As previously announced, Interpool last week concluded the acquisition of a 50%
interest in Container Applications International, Inc. (CAI), a container
leasing company focusing on the short-term master lease market. Mr. Tuchman
said, "This transaction will afford Interpool and CAI the opportunity to provide
competitive full leasing services to their customers, accommodating both long
and short-term leasing requirements."
Interpool, originally founded in 1968, is one of the world's leading lessors of
cargo containers used in international trade 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.
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.
***TABLE FOLLOWS***
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INTERPOOL, INC.
CONSOLIDATED STATEMENT OF INCOME
(IN THOUSANDS, EXCEPT AMOUNTS PER SHARE)
(UNAUDITED)
ACTUAL
THREE MONTHS ENDED
MARCH 31,
1998 1997
-------- --------
REVENUES $ 42,832 $ 38,176
LEASE OPERATING AND ADMINISTRATIVE EXPENSES 10,919 8,343
DEPRECIATION AND AMORTIZATION OF LEASING EQUIPMENT 9,727 8,531
GAIN ON SALE OF LEASING EQUIPMENT (218) (329)
-------- --------
EARNINGS BEFORE INTEREST AND TAXES 22,404 21,631
INTEREST EXPENSE, NET 13,194 11,062
-------- --------
INCOME BEFORE TAXES AND EXTRAORDINARY LOSS 9,210 10,569
PROVISION FOR INCOME TAXES 1,100 1,475
-------- --------
INCOME BEFORE EXTRAORDINARY LOSS 8,110 9,094
EXTRAORDINARY LOSS ON RETIREMENT OF DEBT, NET OF APPLICABLE -- 328
-------- --------
TAXES OF $225
NET INCOME $ 8,110 $ 8,766
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INCOME PER SHARE BEFORE EXTRAORDINARY LOSS AND PREMIUM
PAID ON REDEMPTION OF PREFERRED STOCK:
BASIC $ 0.29 $ 0.31
DILUTED $ 0.28 $ 0.29
EXTRAORDINARY LOSS ON RETIREMENT OF DEBT:
BASIC NA ($ 0.01)
DILUTED NA ($ 0.01)
PREMIUM PAID ON REDEMPTION OF PREFERRED STOCK (1):
BASIC NA ($ 0.26)
DILUTED NA ($ 0.21)
NET INCOME PER SHARE:
BASIC $ 0.29 $ 0.05
DILUTED $ 0.28 $ 0.05
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 27,552 26,326
DILUTED 28,510 31,773
(1) Represents a non-recurring charge of $6,716 to retained earnings for the
excess of the redemption price of 5-3/4% Cumulative Convertible Preferred
Stock over the carrying amount expressed as an amount per share.