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Contact: RAOUL J. WITTEVEEN
(212) 916-3261
NEWS FOR IMMEDIATE RELEASE
INTERPOOL, INC. REPORTS RECORD 3RD QUARTER INCOME PER SHARE
OF $0.35 AS COMPARED WITH $0.28 FOR PRIOR YEAR
PRINCETON, NJ, OCTOBER 27, 1998 -- Interpool, Inc. (NYSE: IPX) reported today
that its 1998 third quarter net income per share (on a diluted basis) was a
record 35 cents, as compared with income per share before extraordinary loss and
premium paid on redemption of preferred stock of 28 cents, for the same period
in 1997. Revenues during the third quarter of 1998 were $46,115,000, up 13% from
$40,962,000 in the third quarter of 1997.
For the first nine months of 1998, Interpool's net income per share was 96 cents
(on a diluted basis), as compared with income per share before extraordinary
loss and premium paid on redemption of preferred stock of 87 cents, for the same
period in 1997. Revenues during the first nine months of 1998 were $133,453,000,
up 12% from $118,922,000 in the first nine months of 1997.
Martin Tuchman, Chairman and Chief Executive Officer, commented that the third
quarter results reflected the Company's continuing focus on effectively managing
and growing its container and chassis leasing business, the mainstay of
shareholder value.
At the end of the third quarter, the Company's container fleet has grown to
approximately 470,000 container TEUs (twenty-foot-equivalent units) with
utilization at 99%, while the chassis fleet has grown to approximately 75,000
units, with utilization at 96%.
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INTERPOOL 3Q98 10/27/98 PAGE 2
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
third quarter of 1998, the Interpool Limited international container division's
contribution to consolidated income increased to $8,346,000 from $7,093,000 for
the third quarter of 1997. The domestic intermodal division's contribution to
consolidated income was $1,709,000 during the third quarter of 1998, versus
$831,000 for the prior year. Revenues for the third quarter of 1998 from the
Interpool Limited international container division increased to $22,985,000,
while revenues from the domestic intermodal division rose to $23,130,000.
During the nine months ended September 30, 1998, the Interpool Limited
international container division's contribution to consolidated income rose to
$24,149,000 from $22,190,000 in 1997, while the domestic intermodal division's
contribution decreased to $3,390,000 from $3,655,000. Revenues for the first
nine months of 1998 from Interpool Limited international container division
increased to $67,353,000, while revenues from the domestic intermodal division
rose to $66,100,000.
On June 19, 1998 Interpool announced its participation in a proposed
recapitalization and merger (the "Merger") of XTRA, with a company newly formed
by Apollo Management IV, L.P. ("Apollo") and Interpool (through its affiliate
Atlas Capital Partners). As previously reported the Company believes that, in
light of current circumstances, the prospects are not favorable for obtaining
the financing necessary to consummate the Merger.
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)
THREE MONTHS NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
1998 1997 1998 1997
--------- --------- --------- ---------
REVENUES $ 46,115 $ 40,962 $ 133,453 $ 118,922
LEASE OPERATING AND ADMINISTRATIVE EXPENSES 10,778 10,292 32,148 27,987
DEPRECIATION AND AMORTIZATION OF LEASING EQUIPMENT 10,865 8,933 30,941 26,155
OTHER INCOME (214) (17) (545) (773)
--------- --------- --------- ---------
EARNINGS BEFORE INTEREST AND TAXES 24,686 21,754 70,909 65,553
INTEREST EXPENSE, NET 12,581 13,280 38,620 36,008
--------- --------- --------- ---------
INCOME BEFORE TAXES AND EXTRAORDINARY LOSS 12,105 8,474 32,289 29,545
PROVISION FOR INCOME TAXES 2,050 550 4,750 3,700
--------- --------- --------- ---------
INCOME BEFORE EXTRAORDINARY LOSS 10,055 7,924 27,539 25,845
EXTRAORDINARY LOSS ON RETIREMENT OF DEBT, NET OF
APPLICABLE TAXES OF $2,150 AND $2,375 -- 4,550 -- 4,878
--------- --------- --------- ---------
NET INCOME $ 10,055 $ 3,374 $ 27,539 $ 20,967
========= ========= ========= =========
INCOME PER SHARE BEFORE EXTRAORDINARY LOSS AND
PREMIUM PAID ON REDEMPTION OF PREFERRED STOCK:
BASIC $ 0.36 $ 0.29 $ 1.00 $ 0.91
DILUTED $ 0.35 $ 0.28 $ 0.96 $ 0.87
EXTRAORDINARY LOSS ON RETIREMENT OF DEBT:
BASIC NA $ (0.17) NA $ (0.18)
DILUTED NA $ (0.16) NA $ (0.16)
PREMIUM PAID ON REDEMPTION OF PREFERRED STOCK (1):
BASIC NA NA NA $ (0.24)
DILUTED NA NA NA $ (0.23)
NET INCOME PER SHARE:
BASIC $ 0.36 $ 0.12 $ 1.00 $ 0.49
DILUTED $ 0.35 $ 0.12 $ 0.96 $ 0.48
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 27,566 27,552 27,560 27,552
DILUTED 28,584 28,626 28,574 29,614
(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 amount per share.
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