Textainer Group Holdings Ltd (NYSE:TGH) Q2 2023 Earnings Conference Call August 1, 2023 11:00 AM ET

Company Participants

Tamara Bakarian - Director, IR

Olivier Ghesquiere - President, CEO & Director

Michael Chan - EVP & CFO

Conference Call Participants

Liam Burke - B. Riley Securities

Operator

Thank you, and welcome to Textainer's Second Quarter 2023 Earnings Conference Call. [Operator Instructions].

I now turn the conference over to Tamara Bakarian Investor Relations of Textainer Group Holdings Limited.

Tamara Bakarian

Thank you. Certain statements made during this conference call may contain forward-looking statements in accordance with U.S. securities laws. These statements involve risks and uncertainties are only predictions and may differ materially from actual future events or results. The company's views, estimates, plans and outlook as described within this call may change after this discussion. The company is under no obligation to modify or update any or all statements that are made.

Please see the company's annual report on Form 20-F for the year ended December 31, 2022, filed with the Securities and Exchange Commission on February 14, 2023, and going forward, any subsequent quarterly filings on Form 6-K for additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements. During this call, we will discuss non-GAAP financial measures. As such measures are not prepared in accordance with generally accepted accounting principles, a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures will be provided either on this conference call or can be found in today's earnings press release. Finally, along with our earnings release today, we have also provided slides to accompany our comments on today's call. Both the earnings release and the earnings call presentation can be found on Textainer's Investor Relations website at investor.textainer.com.

I would now like to turn the call over to Olivier Ghesquiere, Textainer's President and Chief Executive Officer, for his opening comments.

Olivier Ghesquiere

Thank you, Tamara. Good morning, everyone, and thank you for joining us today. I will begin by reviewing the highlights of our second quarter results, followed by additional perspective on the industry. Michael will then go over our financial results in greater detail, after which we will open the call for your questions.

We are very happy with our to 2023 earnings results, which continue to demonstrate the benefits of our long-term contracted revenue and strong utilization levels. For the second quarter, adjusted net income was $51 million or $1.20 per share and with resilient lease rental income at $192 million. Our utilization rate has continued to support our top line, remaining very firm at nearly 99%. This results from both, a reduction of our container turn-ins as well as our continued success in renewing maturing leases, a testament to our strong customer relationships and proactive actions. Additionally, despite the current interest rate landscape, our financing costs remain well under control, thanks to a policy of long-term interest hedges and active deleveraging strategy.