XTRA Reports 2001 Second Quarter Earnings
WESTPORT, Conn., April 26 XTRA Corporation
today announced diluted earnings per share and net income of $.67 and
$8 million, respectively, for the second quarter ended March 31, 2001,
compared to $1.12 and $13 million for the same quarter a year ago. The
average number of diluted shares outstanding declined to 11.4 million in the
second quarter of fiscal 2001 from 12.0 million in the second quarter of
fiscal 2000 due to the $51 million of stock repurchased during the fifteen
months ended March 31, 2001. These repurchases were accretive to earnings per
share.
XTRA also announced today that its Board of Directors approved a new
$100 million stock repurchase authorization. The new repurchase authorization
is part of the Company's ongoing stock repurchase program. Since February
1995, the Company has repurchased 6.9 million shares for $300 million,
representing approximately 41% of its common shares then outstanding. Year-
to-date in fiscal 2001, including third quarter activity, the Company has
repurchased approximately 1.5 million shares of common stock for approximately
$71 million, substantially completing the Company's current $100 million
repurchase authorization which was approved in September 1999. Currently
there are approximately 10.5 million common shares outstanding.
Business Summary
Net income for the fiscal second quarter ended March 31, 2001 was
$8 million, or $.67 diluted earnings per share, on revenues of $105 million.
Overall equipment utilization for the second quarter of fiscal year 2001
averaged 77%, compared to 82% for the second quarter of fiscal year 2000.
For the six months ended March 31, 2001, the Company reported diluted
earnings per share and net income of $2.23 and $26 million, respectively.
This compares to diluted earnings per share and net income of $2.74 and
$34 million for the comparable period of the prior year.
The contributions to diluted earnings per share from the Company's North
American and International segments were as follows:
Three Months Ended Six Month Ended
March 31, March 31,
2001 2000 2001 2000
North America $.83 $1.16 $2.55 $2.81
International (.16) (.04) (.32) (.07)
$.67 $1.12 $2.23 $2.74
Economic conditions in the domestic and international transportation
markets have slowed substantially since the fourth quarter of fiscal 2000.
XTRA's North American and International utilization rates for the second
quarter of fiscal 2001 both averaged 77% versus 82% a year ago.
Outlook
Lewis Rubin, XTRA's President and Chief Executive Officer, commented, "As
we indicated on March 27, 2001, the slowing economy is producing significant
reductions in worldwide freight tonnage. As a result, XTRA's utilization
rates remain below last year's levels. Overall estimated company-wide
equipment utilization for the first fifteen days of April 2001 was 76%.
Although this is modestly better than the 75% overall utilization experienced
in March 2001, it is still well below last year, when utilization averaged 83%
for the full month of April 2000. We expect the Company's financial
performance to continue to lag behind last year's for our fiscal third quarter
and full fiscal year."
Mr. Rubin continued, "XTRA currently has committed capital spending for
revenue equipment of $55 million for fiscal 2001, primarily for over-the-road
trailers. For the full year, we expect total capital spending to be less than
$100 million, compared to $240 million in fiscal 2000. Despite lower
anticipated utilization levels, XTRA expects fiscal 2001 cash flow to remain
strong, and exceed $280 million. Cash flow from operations in the first six
months of fiscal 2001 was $153 million compared to $160 million in the
comparable prior year period. XTRA's strong cash flow allows the Company to
continue to pursue both internal and external growth opportunities. During
the first six months of fiscal 2001, in addition to share repurchases, the
Company reduced its net debt outstanding by $68 million."
XTRA CORPORATION AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(Millions of dollars, except per share and share amounts)
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
2001 2000 2001 2000
Revenues $ 105 $ 115 $ 228 $ 242
Operating expenses
Depreciation on
rental equipment 37 38 75 75
Rental equipment lease
financing expense 2 2 5 4
Rental equipment
operating expenses 27 27 54 55
Selling and
administrative expense 12 11 25 23
78 78 159 157
Operating income 27 37 69 85
Interest expense 14 15 28 29
Foreign exchange
(gain)/loss 1 - 1 -
Income before provision
for income taxes
and unusual item 12 22 40 56
Unusual item: income
related to acquisition
break-up fee - - 2 -
Pretax income 12 22 42 56
Provision for income taxes 4 9 16 22
Net income $ 8 $ 13 $ 26 $ 34
Basic earnings per
common share $0.67 $1.12 $2.24 $2.74
Weighted average basic
shares outstanding
(in millions) 11.3 12.0 11.5 12.3
Diluted earnings
per share $0.67 $1.12 $2.23 $ 2.74
Weighted average diluted
shares outstanding
(in millions) 11.4 12.0 11.5 12.3
* Note: Certain amounts in the prior year financial statements have been
reclassified to be consistent with the current year presentation.
The accompanying notes are an integral part of these consolidated
financial statements.
XTRA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions of dollars)
March 31, September 30,
2001 2000
(Unaudited)
Assets
Property and Equipment, net $1,375 $1,432
Receivables, net 102 116
Other Assets 17 18
Total Assets $1,494 $1,566
Liabilities and Stockholders' Equity
Liabilities
Debt $719 $788
Deferred Income Taxes 365 350
Other Liabilities 63 67
Stockholders' Equity 347 361
Total Liabilities & Stockholders' Equity $1,494 $1,566
Net Debt Outstanding $718 $786
XTRA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions of dollars)
(Unaudited)
Six Months
Ended March 31,
2001 2000
Cash Provided from Operations (a) $153 $160
Cash Used for Investment Activities (b) (46) (88)
Cash Used for Financing Activities (39) (30)
Decrease in Net Debt Outstanding
(Debt - Cash) $68 $42
(a) The six months ended March 31, 2000 includes $10 million of sale
proceeds from equipment purchased in the prior fiscal year and refinanced
as a part of a $34 million, 10-year operating lease agreement entered into
during the first quarter of fiscal 2000.
(b) The six months ended March 31, 2000 excludes $24 million of equipment
financed under the 10-year off-balance sheet operating lease.
