| Thu 16 Feb 2012, 16:16 | | TRE - Trencor - Reviewed Results for the year ended 31 December 2011 and |
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TRE
TRE
TRE - Trencor - Reviewed Results for the year ended 31 December 2011 and
Declaration of Cash Dividend
TRENCOR LIMITED
INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA
REG NO 1955/002869/06
SHARE CODE: TRE
ISIN: ZAE000007506
(`Trencor`)
REVIEWED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2011 AND DECLARATION OF CASH
DIVIDEND
COMMENTARY
GROUP
- Trading profit from operations after net financing costs increased by 53%
from R1 002 million in 2010 to R1 529 million.
- Profit for the period included a non-cash gain of R64 million arising on the
sale of containers to the prior non-controlling interest in Textainer`s primary
asset-owning subsidiary, Textainer Marine Containers Ltd (`TMCL`) - see
comments under Textainer.
- Headline earnings per share (including the effect of net realised and
unrealised foreign exchange translation gains and losses) were 559,3 cents
(2010: 335,5 cents).
- Adjusted headline earnings per share (which excludes the effect of net
unrealised foreign exchange translation gains and losses but includes gains on
the sale of containers referred to above), at 482,4 cents (2010: 369,4 cents),
were up by 30,6%.
- Net unrealised foreign exchange gains arising on translation of net dollar
receivables and the related valuation adjustments, not included in adjusted
headline earnings per share, were R191 million or 76,9 cents per share (2010:
losses R88 million or 33,9 cents per share).
- These different earnings are better reflected in tabular form:
2011 2010
Cents per share Cents per share
Headline earnings including gains on
containers sold pursuant to TMCL`s
restructuring in the current year
(35,7 cents per share) 559,3 335,5
Deduct/(Add): Unrealised foreign
exchange translation gains/(losses) 76,9 (33,9)
Adjusted headline earnings 482,4 369,4
- Consolidated gearing ratio at 31 December 2011 was 173% (2010: 98%). This
increase is a result of the expansion of Textainer`s container fleet. All of
the interest-bearing debt is in Textainer, without recourse to Trencor.
- Based on the spot exchange rate of US$1 = R8,12 and the price of Textainer`s
shares listed on the NYSE on 31 December 2011 (US$29,12 per share), the net
asset value of Trencor at that date was as follows:
R million R per share
Net beneficiary interest in Textainer 7 041,3 39,76
Net interest in long-term receivables 815,2 4,60
Cash 727,2 4,11
Net liabilities (145,7) (0,82)
8 438,0 47,65
- Trencor repurchased 10,8 million of its own shares for a total consideration
of R417 million in March 2011.
- Final dividend of 125 cents per share declared, making a total of 175 cents
per share for the year (2010: total 140 cents per share), an increase of 25%
over the previous year.
TEXTAINER: 60,8% interest at 31 December 2011 (2010: 61,6%)
- Net profit for the year in US GAAP was US$189,6 million (2010: US$120,0
million). Adjusted to conform with International Financial Reporting Standards,
Textainer`s net profit was US$194,0 million (2010: US$128,0 million). Current
period amounts include a non-cash gain of US$15,5 million arising on the sale
of containers to the prior non-controlling interest.
- Fleet utilisation currently stands at 97,3%, compared with spot utilisation
of 98,6% a year ago. 78% of the fleet is committed to long-term and direct
financing leases.
- Total capital expenditure for both the owned and managed fleets was US$904
million for the year, used to purchase 215 000 TEU (twenty-foot equivalent
units) of new standard dry-freight containers, 18 000 TEU of new refrigerated
units and 215 000 TEU of used containers, all new records for the company.
- The owned portion of the total fleet of 2 469 000 TEU increased to 58,6%
(2010: 50,9% of 2 314 000 TEU).
- Completed a capital restructuring of the primary asset-owning subsidiary,
TMCL, effective 30 June 2011, following which Textainer now owns 100% of TMCL.
The restructuring resulted in a US$20,4 million gross gain on sale of
containers to the prior non-controlling interest. The gain was the result of
recognising the fair value of containers and direct finance leases in excess of
their book value exchanged for TMCL`s common shares at the time of the
transaction. This was a non-cash transaction.
- Issued US$400 million in asset-backed notes at a fixed interest rate of 4,7%
p.a.
- Declared dividends of US$0,35 and US$0,37 per share in respect of the third
and fourth quarter of 2011 respectively.
- Textainer`s results may be viewed on its website www.textainer.com.
DECLARATION OF CASH DIVIDEND
The board has declared a final cash dividend (number 92) of 125 cents per share
in respect of the year ended 31 December 2011.
The salient dates pertaining to the cash dividend payment are as follows:
Last day to trade cum the dividend Thursday, 15 March 2012
Trading commences ex the dividend Friday, 16 March 2012
Record date Friday, 23 March 2012
Payment date Monday, 26 March 2012
Share certificates may not be dematerialised or rematerialised between Friday,
16 March 2012 and Friday, 23 March 2012, both days inclusive.
PREPARATION OF FINANCIAL STATEMENTS
These reviewed results have been prepared by management under the supervision
of the financial director.
REVIEW OPINION
These results, other than the figures stated in US dollars, have been reviewed
by the independent auditors, KPMG Inc, and their unmodified review report is
available for inspection at the registered office.
On behalf of the board
NI Jowell Chairman
16 February 2012
Directors:
NI Jowell* (Chairman), JE Hoelter (USA), C Jowell*, JE McQueen* (Financial), DM
Nurek (Lead), E Oblowitz, RJA Sparks, HR van der Merwe*, H Wessels (*
executive)
Secretaries: Trencor Services (Pty) Ltd
Registered Office: 1313 Main Tower, Standard Bank Centre, Heerengracht, Cape
Town 8001
Transfer Secretaries: Computershare Investor Services (Pty) Ltd, 70 Marshall
Street, Johannesburg 2001 (PO Box 61051, Marshalltown 2107)
Sponsor: Rand Merchant Bank (A division of FirstRand Bank Ltd)
Condensed consolidated statement of financial position at 31 December 2011
Reviewed Audited
2011 2010
R Million
ASSETS
Property, plant and equipment 15 600 9 604
Intangible assets 380 400
Investment in equity accounted investee 3 -
Other investments 14 14
Long-term receivables 756 828
Net investment in finance leases 444 325
Derivative financial instruments - 9
Deferred tax assets 22 77
Restricted cash 370 99
Total non-current assets 17 589 11 356
Inventories 169 22
Trade and other receivables 773 458
Current portion of long-term receivables 285 149
Current portion of net investment in finance leases 167 112
Current tax assets 2 3
Cash and cash equivalents 1 333 1 029
Investment - 235
Current assets 2 729 2 008
Total assets 20 318 13 364
EQUITY
Share capital and premium 44 457
Reserves 4 750 3 438
Equity attributable to equity holders of the company 4 794 3 895
Non-controlling interest 2 188 2 056
Total equity 6 982 5 951
LIABILITIES
Interest-bearing borrowings 11 031 5 475
Amounts attributable to third parties in respect
of long-term receivables 173 221
Derivative financial instruments 131 90
Deferred revenue 9 20
Deferred tax liabilities 224 225
Total non-current liabilities 11 568 6 031
Trade and other payables 510 909
Current tax liabilities 78 64
Current portion of interest-bearing borrowings 1 076 340
Current portion of amounts attributable to third 53 24
parties in respect of long-term receivables
Current portion of deferred revenue 51 45
Current liabilities 1 768 1 382
Total liabilities 13 336 7 413
Total equity and liabilities 20 318 13 364
Capital expenditure incurred during the year 5 396 3 566
Capital expenditure committed and authorised, but
not yet incurred 277 -
Directors` valuation of other unlisted investments 14 249
Ratio to aggregate of total equity:
Total liabilities (%) 191,0 124,6
Interest-bearing debt (%) 173,4 97,7
Condensed consolidated statement of cash flows for the year ended 31 December
2011
Reviewed Audited
2011 2010
R Million
Cash generated from operations 2 485 1 881
Increase in container leasing equipment (5 912) (2 934)
Finance income received 5 10
Finance expenses paid (335) (175)
Dividends paid to equity holders of the company (265) (234)
Dividends paid to non-controlling interest (187) (136)
Taxation paid (43) (56)
Net cash outflow from operating activities (4 252) (1 644)
Cash inflow from investing activities 236 105
Cash inflow from financing activities 4 075 1 562
Net increase in cash and cash equivalents before 59 23
exchange rate fluctuations
Net cash and cash equivalents at the beginning of 1 029 1 115
the year
Effects of exchange rate fluctuations on cash and 245 (109)
cash equivalents
Net cash and cash equivalents at the end of the year 1 333 1 029
Condensed consolidated statement of comprehensive income for the year ended 31
December 2011
Reviewed Audited
2011 2010
R Million
Revenue (Note 2) 4 649 2 353
Trading profit before items listed below 1 944 1 226
Realised and unrealised exchange 276 (149)
gains/(losses) on
translation of long-term receivables,
excluding fair
value adjustment
Net long-term receivable fair value (40) 250
adjustment
Impairment of plant and equipment (18) (12)
Profit from operations 2 162 1 315
Net finance (expenses)/income (Note 3) (415) (224)
Finance expenses - Interest expense (315) (132)
- Losses on derivative
financial
instruments (105) (102)
Finance income - Interest income 5 10
Loss from equity accounted investee (2) -
Profit before tax 1 745 1 091
Income tax expense (100) (9)
Profit for the year 1 645 1 082
Other comprehensive income/(loss)
Foreign currency translation differences 1 120 (583)
Total comprehensive income for the year 2 765 499
Total comprehensive income for the year
attributable to:
Equity holders of the company 1 720 268
Non-controlling interest 1 045 231
2 765 499
Profit attributable to:
Equity holders of the company 991 624
Non-controlling interest 654 458
1 645 1 082
Basic earnings per share (cents) 554,3 332,5
Diluted earnings per share (cents) 554,3 331,8
Number of shares in issue (million) 177,1 187,5
Weighted average number of shares in issue 178,8 187,5
(million)
Year-end rate of exchange: SA rand to US 8,12 6,61
dollar
Average rate of exchange for the year: SA 7,20 7,33
rand to
US dollar
Condensed consolidated statement of changes in equity for the year ended 31
December 2011
Reviewed Audited
2011 2010
R Million
Balance at the beginning of the year 3 895 3 841
Total comprehensive income for the year 1 720 268
Profit for the year 991 624
Foreign currency translation differences 729 (356)
Dividends paid (265) (234)
Share-based payments 42 24
Change in holding in subsidiary (8) (4)
Repurchase of own shares from owners (417) -
Share options exercised 5 -
Acquisition of non-controlling interest without a
change in control (178) -
Shareholders` interest 4 794 3 895
Non-controlling interest in subsidiaries 2 188 2 056
Balance at the beginning of the year 2 056 1 905
Total comprehensive income for the year 1 045 231
Profit for the year 654 458
Foreign currency translation differences 391 (227)
Dividends paid to non-controlling interest (187) (136)
Share-based payments 25 15
Shares issued by subsidiary 42 37
Acquisition of non-controlling interest without a (801) -
change in control
Change in holding in subsidiary 8 4
Equity 6 982 5 951
Notes to the condensed consolidated annual financial statements for the year
ended 31 December 2011
1. These condensed consolidated financial statements have been prepared in
accordance with the measurement and recognition requirements of International
Financial Reporting Standards (IFRS), the presentation and disclosure
requirements of IAS 34 Interim Financial Reporting, the AC 500 Series issued by
the Accounting Practices Board and the Companies Act, 2008 of South Africa. The
accounting policies applied in the preparation of these consolidated condensed
financial statements are consistent with those used in the annual financial
statements for the year ended 31 December 2010.
Reviewed Audited
2011 2010
R Million
2. Revenue
Goods sold and services rendered 1 765* 521
Leasing income 2 378 1 744
Management fees 212 214
Finance income 18 23
4 373 2 502
Realised and unrealised exchange differences 276 (149)
4 649 2 353
*Includes R899 million in respect of containers sold to non-controlling
interest
3. Net finance expenses/(income)
Finance expenses 420 234
Interest expense - Textainer 315 131
Interest expense - other group companies - 1
Losses on derivative financial instruments 105 102
Finance income
Interest income - cash and cash equivalents (5) (10)
415 224
4. Headline earnings
Profit attributable to equity holders of the company 991 624
Impairment of property, plant and equipment 18 12
Gain on disposal of property, plant and equipment (1) -
Total tax effects of adjustments - (1)
Total non-controlling interests` share of adjustments (7) (6)
Headline earnings 1 001 629
Weighted average number of shares in issue (million) 178,8 187,5
Headline earnings per share (cents) 559,3 335,5
Diluted headline earnings per share (cents) 559,3 334,8
Adjusted headline earnings:
Headline earnings (as above) 1 001 629
Net (gain)/loss on translation of net US dollar (191) 88
receivables
Total tax effects of adjustments 53 (25)
Adjusted headline earnings 863 692
Undiluted adjusted headline earnings per share 482,4 369,4
(cents)
Diluted adjusted headline earnings per share (cents) 482,4 368,6
5. Segmental reporting
Revenue
Reportable segments
Containers - finance (including exchange differences) 296 (126)
Containers - owning, leasing, management and 4 353(1) 2 477
reselling
4 649 2 351
Unallocated - 2
4 649 2 353
Profit from operations
Reportable segments
Containers - finance 248 123
Containers - owning, leasing, management and 1 934(2) 1 223
reselling, including gain on disposal of containers
to non-controlling interest
2 182 1 346
Unallocated (20) (31)
2 162 1 315
Profit before taxation
Reportable segments
Containers - finance 248 123
Containers - owning, leasing, management and 1 512(2) 990
reselling, including gain on disposal of containers
to non-controlling interest
1 760 1 113
Unallocated (15) (22)
1 745 1 091
1 Includes R899 million revenue in respect of containers sold to non-
controlling interest
2 Includes R138 million gain in respect of containers sold to non-controlling
interest
Assets
Capital expenditure incurred by the container owning, 5 396 3 566
leasing, management and reselling segment
In order to provide a better appreciation of the results of the group`s
activities, a condensed consolidated income statement and a statement of
financial position are also presented in US dollars, as virtually all of the
group`s revenue and assets and much of its expenditure are denominated in that
currency. The amounts stated in US dollars have been prepared by management and
are unaudited.
Unaudited Trencor condensed consolidated income statement in US dollars for the
year ended 31 December 2011
Unaudited Unaudited
2011 2010
US$ Million
Revenue 620,5 337,1
Trading profit before items listed below 271,3 167,2
Realised and unrealised exchange gains/(losses) 4,7 (4,3)
arising on translation
Net long-term receivable fair value adjustment 6,1 29,3
Impairment of plant and equipment (2,4) (1,6)
Profit from operations 279,7 190,6
Net finance (expenses)/income (57,8) (30,7)
Finance expense - Interest expense (43,7) (18,1)
- Losses on derivative financial
instruments (14,7) (13,9)
Finance income - Interest income 0,6 1,3
Loss from equity accounted investee (0,2) -
Profit before tax 221,7 159,9
Income tax expense (7,8) (4,7)
Profit for the year 213,9 155,2
Attributable to:
Equity holders of the company 122,7 92,8
Non-controlling interest 91,2 62,4
213,9 155,2
Number of shares in issue (million) 177,1 187,5
Weighted average number of shares in issue (million) 178,8 187,5
Basic earnings per share (US cents) 68,6 49,5
Diluted earnings per share (US cents) 68,6 49,4
Headline earnings per share (US cents) 69,2 49,9
Diluted headline earnings per share (US cents) 69,2 49,8
Adjusted headline earnings per share (US cents) 66,6 51,5
Diluted adjusted headline earnings per share (US 66,6 51,4
cents)
Year-end rate of exchange: SA rand to US dollar 8,12 6,61
Average rate of exchange for the year: SA rand to 7,20 7,33
US dollar
Trading profit from operations comprises:
Textainer 251,8 168,5
Textainer - gain on sale of containers to
non-controlling Interest 20,4 -
Other (0,9) (1,3)
271,3 167,2
Unaudited Trencor condensed consolidated statement of financial position in US
dollars at 31 December 2011
Unaudited Unaudited
2011 2010
US$ Million
ASSETS
Property, plant and equipment 1 921,2 1 453,0
Long-term receivables 93,1 125,2
Other non-current assets 151,8 139,9
Non-current assets 2 166,1 1 718,1
Current assets 336,1 303,7
Inventories 20,8 3,3
Trade and other receivables 95,3 69,2
Current portion of long-term receivables 35,1 22,5
Current portion of net investment in finance leases 20,6 16,9
Current tax assets 0,2 0,5
Investment - 35,6
Cash and cash equivalents 164,1 155,7
Total assets 2 502,2 2 021,8
Equity and liabilities
Equity attributable to equity holders of the company 590,6 589,1
Non-controlling interest 269,4 311,1
Total equity 860,0 900,2
LIABILITIES
Interest-bearing borrowings 1 358,5 828,4
Amounts attributable to third parties in respect of
long-term receivables 21,3 33,5
Derivative financial instruments 16,1 13,6
Deferred revenue 1,1 3,0
Deferred tax liabilities 27,6 34,0
Total non-current liabilities 1 424,6 912,5
Current liabilities 217,6 209,1
Trade and other payables 62,8 137,4
Current tax liability 9,6 9,7
Current portion of amounts attributable to third 6,5 3,6
parties in respect of long-term receivables
Current portion of interest-bearing borrowings 132,5 51,5
Current portion of deferred revenue 6,2 6,9
Total liabilities 1 642,2 1 121,6
Total equity and liabilities 2 502,2 2 021,8
Ratio to aggregate of total equity:
Total liabilities (%) 191,0 124,6
Interest-bearing debt (%) 173,4 97,7
These results can be viewed on the website www.trencor.net
Date: 16/02/2012 16:16:35 Produced by the JSE SENS Department.
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