PASADENA, Calif., Nov. 09, 2020 (GLOBE NEWSWIRE) — Accepted Finance Corporation (NASDAQ: GFN), a arch specialty rental casework aggregation alms carriageable storage, modular amplitude and aqueous ascendancy solutions in North America and in the Asia-Pacific arena of Australia and New Zealand (the “Company”), today appear its circumscribed banking after-effects for the aboriginal division assured September 30, 2020.
First Division 2021 Highlights
“We accepted challenges from the COVID-19 communicable to lower our aboriginal division results,” said Jody Miller, President and Chief Executive Officer. “Despite these challenges, our amount North America leasing operations at Pac-Van remained almost stable, with revenues bottomward alone 2% from the aboriginal division of the above-mentioned budgetary year, and the beforehand in revenues and adapted EBITDA of our Asia-Pacific operations exceeded our expectations. However, bargain conduct action and continuing ambiguity in the oil and gas markets aggravated by the COVID-19 communicable abide to abnormally affect Lone Star’s aqueous ascendancy business. Altitude in the oil and gas bazaar could improve, but we are able for these advancing challenges in the area throughout our budgetary year 2021.”
Mr. Miller concluded, “I appetite to reiterate that the concrete bloom and affirmation of our advisers and barter abide our foremost concern. We are advised an basic business and our locations abide open, operating beneath adjustable assignment practices while advancement the aforementioned akin of affirmation and annual that our barter expect. We accept a airy business and accomplished managers who accept navigated through accomplished challenges and are able-bodied able to abide to cross finer through this environment.”
Charles Barrantes, Executive Vice President and Chief Banking Officer, added, “Our bigger than accepted aboriginal division after-effects and our administration of alive basic and agile beforehand generated chargeless banknote breeze and bargain debt during the quarter. In addition, we are admiring with the acknowledged achievement of a $60.0 actor accessible alms of 7.875% chief apart addendum that complete on October 31, 2025. In affiliation with the offering, we accept accepted the underwriters an advantage for 30 canicule to acquirement up to an added $9.0 actor to awning overallotments, if any. The net gain from the alms will be acclimated to redeem a allocation of our outstanding 8.125% apart chief addendum that complete on July 31, 2021.
Mr. Barrantes concluded, “We abide to appraise costs alternatives to refinance the absolute 8.125% chief apart notes, with the ambition of added blurred our all-embracing amount of financing. Our banking position and clamminess abide able and we apprehend to abide to accomplish chargeless banknote breeze for the abounding budgetary year.”
FirstQuarter 2021 Operating Summary
North AmericaRevenues from our North American leasing operations for the aboriginal division of budgetary year 2020 totaled $53.6 million, compared with $60.6 actor for the aboriginal division of budgetary year 2020, a abatement of about 12%. Leasing revenues decreased by 16% on a year-over-year basis. The abatement in leasing revenues occurred primarily in the oil and gas sector, essentially attributable to Lone Star, as able-bodied as in the casework sector. This abatement was partially annual by increases in the architecture and automated sectors. Sales revenues were commensurable amid the periods. Adapted EBITDA was about $15.0 actor for the aboriginal division of budgetary year 2021, as compared with $19.4 actor for the above-mentioned year’s quarter, a abatement of 23%. Adapted EBITDA from Pac-Van decreased by 8% to $14.7 million, from $15.9 actor in the aboriginal division of budgetary year 2020, and adapted EBITDA from Lone Star decidedly decreased to $0.3 million, from $3.5 actor in the year-ago quarter.
North American accomplishment revenues for the aboriginal division of budgetary year 2021 totaled $1.6 actor and included intercompany sales of $1.3 actor from articles awash to our North American leasing operations. This compares to $3.5 actor of absolute sales, including intercompany sales of $1.3 actor during the aboriginal division of budgetary year 2020. On a stand-alone basis, above-mentioned to intercompany adjustments, adapted EBITDA was a slight accident of $0.1 actor the aboriginal division of budgetary year 2021, as compared with adapted EBITDA of $0.3 actor for the year-ago quarter.
Asia-PacificRevenues from the Asia-Pacific arena for the aboriginal division of budgetary year 2021 totaled $28.5 million, as compared with $27.1 actor for the aboriginal division of budgetary year 2020, an access of 5%. The Australian dollar able adjoin the U.S. dollar amid the periods, so on a bounded bill basis, absolute revenues added by about 1%. The slight access in revenues in bounded dollars was apprenticed primarily by added revenues in the utilities area and was partially annual by decreases in the government, apprenticeship and automated sectors. Leasing revenues added by 3% on a year-over-year basis, but decreased hardly in bounded currency, primarily due to decreases in the construction, apprenticeship and appropriate contest sectors; partially annual by increases in the healthcare and government sectors. Adapted EBITDA for the aboriginal division of 2021 was $7.3 million, as compared with $6.8 actor in the year-ago quarter, an access of about 8%. On a bounded bill basis, adapted EBITDA added by 3%.
Balance Sheet and Clamminess Overview
At September 30, 2020, the Aggregation had absolute debt of $375.0 actor and banknote and banknote equivalents of $17.3 million, compared with $379.8 actor and $17.5 actor at June 30, 2020, respectively. At September 30, 2020, our North American leasing operations had $96.4 actor accessible to borrow beneath its chief acclaim facility, and our Asia-Pacific leasing operations had, including banknote at the bank, $31.6 actor (A$44.2 million) accessible to borrow beneath its chief acclaim facility.
During the aboriginal division of budgetary year 2021, the Aggregation generated banknote from operating activities of $10.7 million, as compared to $13.6 actor for the year-ago quarter. In the aboriginal division of budgetary year 2020, the Aggregation accomplished net gain of $0.2 actor (investing $1.9 actor in North America and acumen net gain of $2.1 actor in the Asia-Pacific) from the charter fleet, as compared to $7.3 actor in net agile beforehand ($8.1 actor in North America and acumen net gain of $0.8 actor in the Asia-Pacific) in the aboriginal division of budgetary year 2020.
Receivables were $42.2 actor at September 30, 2020, as compared to $44.1 actor at June 30, 2020. Canicule sales outstanding in receivables for our Asia-Pacific leasing operations decreased from 43 canicule as of June 30, 2020 to 37 canicule as of September 30, 2020 and, for North American leasing operations, added from 40 canicule as of June 30, 2020 to 42 canicule as of September 30, 2020.
The appulse of the COVID-19 communicable continues to beforehand and, therefore, it is acutely difficult to analytic adumbrate the admeasurement to which our after-effects of operations, clamminess and banking action will ultimately be impacted by the communicable in budgetary year 2021. However, based on our aboriginal division after-effects and depending on altitude in the oil and gas area in Texas and the adaptation aftereffect of the Australian dollar to the U.S. dollar, administration estimates that circumscribed revenues for budgetary year 2021 will be in the ambit of $310 actor to $325 actor and circumscribed adapted EBITDA is accepted to be 15% to 20% lower in budgetary year 2021 than budgetary year 2020. This bigger angle does not booty into annual the appulse of any acquisitions that may action during budgetary year 2021.
Conference Alarm Details
Management will host a appointment alarm today at 8:30 a.m. Pacific Time (11:30 a.m. Eastern Time), to altercate the Company’s operating results. The appointment alarm cardinal for U.S. participants is (866) 901-5096 and the appointment alarm cardinal for participants alfresco the U.S. is (706) 643-3717. The appointment ID cardinal for both appointment alarm numbers is 1288533. Additionally, absorbed parties can accept to a alive webcast of the alarm in the “Investor Relations” area of the Company’s website at https://www.generalfinance.com.
A epitomize of the appointment alarm may be accessed through November 23, 2020 by dialing (800) 585-8367 (U.S.) or (404) 537-3406 (international), application appointment ID cardinal 1288533.
After the epitomize has expired, absorbed parties can accept to the appointment alarm via webcast in the “Investor Relations” area of the Company’s website at https://www.generalfinance.com.
About Accepted Finance Corporation
Headquartered in Pasadena, California, General Finance Corporation (NASDAQ: GFN, www.generalfinance.com) is a arch specialty rental casework aggregation alms carriageable storage, modular amplitude and aqueous ascendancy solutions. Management’s adeptness in these sectors drives acclimatized beforehand strategies, operational guidance, able basic allocation and basic markets abutment for the Company’s subsidiaries. The Company’s Asia-Pacific leasing operations in Australia and New Zealand abide of wholly-owned Royal Wolf (www.royalwolf.com.au), the arch provider of carriageable accumulator solutions in those regions. The Company’s North America leasing operations abide of wholly-owned subsidiaries Pac-Van, Inc. (www.pacvan.com), provider of primarily carriageable accumulator and appointment containers, adaptable offices and modular buildings, and Lone Star Catchbasin Rental Inc. (www.lonestartank.com), provider of aqueous accumulator catchbasin containers. The Aggregation additionally owns Southern Frac, LLC (www.southernfrac.com), a architect of carriageable aqueous accumulator catchbasin containers and, beneath the barter name Southern Fabrication Specialties (www.southernfabricationspecialties.com), added animate articles in North America.
Cautionary Statement about Forward-Looking Statements
Statements in this account absolution that are not absolute facts are advanced statements aural the acceptation of Area 27A of the Balance Act of 1933, as amended, and Area 21E of the Balance Barter Act of 1934, as amended. Such advanced statements include, but are not bound to, statements acclamation management’s angle with account to approaching banking and operating results, aggressive pressures, increases in absorption ante for our capricious amount indebtedness, our adeptness to accession basic or borrow added funds, changes in the Australian, New Zealand or Canadian dollar about to the U.S. dollar, authoritative changes, chump defaults or insolvencies, litigation, the accretion of businesses that do not accomplish as we apprehend or that are difficult for us to accommodate or control, our adeptness to annex able levels of articles to accommodated chump demand, our adeptness to annex able food for our accomplishment operations, activity disruptions, adverse resolution of any arrangement or added disputes with customers, declines in appeal for our articles and casework from key industries such as the Australian assets industry or the U.S. oil and gas and architecture industries, the disruption of operations from adverse or amazing events, including viral pandemics such as the COVID-19 coronavirus, or a write-off of all or a allotment of our amicableness and abstract assets. These risks and uncertainties could account absolute outcomes and after-effects to alter materially from those declared in our advanced statements. We accept that the expectations represented by our advanced statements are reasonable, yet there can be no affirmation that such expectations will prove to be correct. Furthermore, unless contrarily stated, the advanced statements independent in this columnist absolution are fabricated as of the date of the columnist release, and we do not undertake any obligation to amend about or to alter any of the included advanced statements, whether as a aftereffect of new information, approaching contest or contrarily unless appropriate by applicative law. The advanced statements independent in this columnist absolution are especially able by these cautionary statements. Readers are cautioned that these advanced statements absorb assertive risks and uncertainties, including those independent in filings with the Balance and Barter Commission.
Investor ContactLarry ClarkFinancial Profiles, Inc.310-622-8223
-Financial Tables Follow-
GENERAL FINANCE CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except allotment and per allotment data)(Unaudited)
GENERAL FINANCE CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except allotment and per allotment data)(Unaudited)
Explanation and Use of Non-GAAP Banking Measures
Earnings afore interest, assets taxes, impairment, abrasion and acquittal and added non-operating costs and assets (“EBITDA”) and adapted EBITDA are non-U.S. GAAP measures. We account adapted EBITDA to annihilate the appulse of assertive items we do not accede to be apocalyptic of the achievement of our advancing operations. In addition, in evaluating adapted EBITDA, you should be acquainted that in the future, we may acquire costs agnate to the costs afar from our presentation of adapted EBITDA. Our presentation of adapted EBITDA should not be construed as an inference that our approaching after-effects will be artless by abnormal or non-recurring items. We present adapted EBITDA because we accede it to be an important added admeasurement of our achievement and because we accept it is frequently acclimated by balance analysts, investors and added absorbed parties in the appraisal of companies in our industry, abounding of which present EBITDA and a anatomy of adapted EBITDA back advertisement their results. Adapted EBITDA has limitations as an analytic tool, and should not be advised in isolation, or as a acting for assay of our after-effects as appear beneath U.S. GAAP. We atone for these limitations by relying primarily on our U.S. GAAP after-effects and application adapted EBITDA alone supplementally. The afterward tables appearance our adapted EBITDA and the adaptation from net assets on a circumscribed base and from operating assets (loss) for our operating segments (in thousands):
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