TAL International Group Inc. (TAL, Financial) filed Quarterly Report for the period ended 2010-06-30.
Tal International Group Inc. has a market cap of $824 million; its shares were traded at around $26.83 with a P/E ratio of 22.3 and P/S ratio of 2.3. The dividend yield of Tal International Group Inc. stocks is 4.5%. Tal International Group Inc. had an annual average earning growth of 4.3% over the past 5 years.TAL is in the portfolios of Bruce Berkowitz of Fairholme Capital Management, Fairholme Fund, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
As of June 30, 2010, our owned fleet included 1,193,635 TEUs, an increase of 10.1% from December 31, 2009, and an increase of approximately 6.5 % from June 30, 2009. The increase in fleet size during the first six months of 2010 was due to several factors, including an increase in new container purchases and the completion of several sale-leaseback transactions for trading containers.
Due to the strong leasing demand, TAL has placed large orders for new containers in 2010. As of the end of July 2010, TAL has ordered over $675 million of new equipment, including 230,000 TEU of new dry containers and 21,000 TEU of new refrigerated containers. Slightly less than half of the ordered units were delivered by June 30, 2010, with the balance of existing orders generally scheduled for delivery during the third and early fourth quarters of 2010. TAL's purchases of new containers in 2010 have also been supported by a shift in the mix of shipping-line owned vs. leased containers. Historically, shipping lines have purchased and owned 55% to 60% of the containers they operate, and leased 40% to 45% of their operated containers from leasing companies like TAL. However, most shipping lines have been cautious about committing to large purchases of new containers this year despite the global container shortage. Many shipping lines continue to face financial constraints from reduced profitability and increased capital outlays associated with their aggressive ship building programs, and they are relying more heavily on the leasing market for access to additional container capacity.
In the first six months of 2010, we sold approximately 42,477 TEUs of our owned containers, or 4.0% of our equipment leasing fleet as of the beginning of 2010. This annualized disposal rate of approximately 8.0% is similar to the 6 to 8% annual disposal rate we have been experiencing for the last few years, and is generally consistent with our expected long-term average disposal rate given the 12 - 14 year expected useful life of our containers. For much of 2009, our disposal rate did not keep pace with the rate at which older containers were being returned to us and our inventory of disposal containers increased throughout the year. However, drop-off volumes have decreased sharply in 2010 due to the global shortage of containers, and our disposal rate in the first half of 2010 was much higher than the rate at which older containers were returned to us. As a result, our inventory of disposal containers has been decreasing this year. If container drop off volumes remain exceptionally low in the second half of 2010, our disposal rate may begin to decrease.
Our average utilization was 95.4% in the second quarter of 2010, an increase of 8.4% from the second quarter of 2009, and an increase of 3.6% from the first quarter of 2010. Ending utilization increased 3.7% from 93.4% as of March 31, 2010 to 97.1% as of June 30, 2010. The increase in our utilization in the second quarter of 2010 was mainly the result of strong leasing demand for our dry containers due to the combination of recovering containerized trade volumes and the 2009 decrease in global container capacity. We expect utilization for our dry containers to remain strong for the remainder of 2010.
Average lease rates for refrigerated containers in the second quarter of 2010 were 2.7% lower compared to the second quarter of 2009, and 0.3% lower than the first quarter of 2010, while average rental rates for our special containers were 0.4% lower during the second quarter of 2010 compared to the second quarter of 2009 and flat compared to the first quarter of 2010. The decrease in average lease rates for our refrigerated containers from the second quarter of 2009 to the second quarter of 2010 was primarily due to lease rate concessions provided to certain customers in 2009 for lease extension transactions. In addition, market leasing rates for new refrigerated containers remain slightly below our portfolio average rates due to a decrease in the price of new refrigerated containers over the last several years. The decrease in average leasing rates for special containers from the second quarter of 2009 to the second quarter of 2010 was primarily due to discounts associated with lease extension transactions completed in 2009.
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Tal International Group Inc. has a market cap of $824 million; its shares were traded at around $26.83 with a P/E ratio of 22.3 and P/S ratio of 2.3. The dividend yield of Tal International Group Inc. stocks is 4.5%. Tal International Group Inc. had an annual average earning growth of 4.3% over the past 5 years.TAL is in the portfolios of Bruce Berkowitz of Fairholme Capital Management, Fairholme Fund, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Our operations include the acquisition, leasing, re-leasing and subsequent sale of multiple types of intermodal containers and chassis. As of June 30, 2010, our total fleet consisted of 765,366 containers and chassis, including containers under management for third parties, representing 1,245,758 twenty-foot equivalent units (TEUs). We have an extensive global presence, offering leasing services through 18 offices in 11 countries and 193 third party container depot facilities in 37 countries as of June 30, 2010. Our customers are among the largest shipping lines in the world. For the six months ended June 30, 2010, our twenty largest customers accounted for 76% of our leasing revenues, our five largest customers accounted for 50% of our leasing revenues, and our largest customer accounted for 17% of our leasing revenues.As of June 30, 2010, our owned fleet included 1,193,635 TEUs, an increase of 10.1% from December 31, 2009, and an increase of approximately 6.5 % from June 30, 2009. The increase in fleet size during the first six months of 2010 was due to several factors, including an increase in new container purchases and the completion of several sale-leaseback transactions for trading containers.
Due to the strong leasing demand, TAL has placed large orders for new containers in 2010. As of the end of July 2010, TAL has ordered over $675 million of new equipment, including 230,000 TEU of new dry containers and 21,000 TEU of new refrigerated containers. Slightly less than half of the ordered units were delivered by June 30, 2010, with the balance of existing orders generally scheduled for delivery during the third and early fourth quarters of 2010. TAL's purchases of new containers in 2010 have also been supported by a shift in the mix of shipping-line owned vs. leased containers. Historically, shipping lines have purchased and owned 55% to 60% of the containers they operate, and leased 40% to 45% of their operated containers from leasing companies like TAL. However, most shipping lines have been cautious about committing to large purchases of new containers this year despite the global container shortage. Many shipping lines continue to face financial constraints from reduced profitability and increased capital outlays associated with their aggressive ship building programs, and they are relying more heavily on the leasing market for access to additional container capacity.
In the first six months of 2010, we sold approximately 42,477 TEUs of our owned containers, or 4.0% of our equipment leasing fleet as of the beginning of 2010. This annualized disposal rate of approximately 8.0% is similar to the 6 to 8% annual disposal rate we have been experiencing for the last few years, and is generally consistent with our expected long-term average disposal rate given the 12 - 14 year expected useful life of our containers. For much of 2009, our disposal rate did not keep pace with the rate at which older containers were being returned to us and our inventory of disposal containers increased throughout the year. However, drop-off volumes have decreased sharply in 2010 due to the global shortage of containers, and our disposal rate in the first half of 2010 was much higher than the rate at which older containers were returned to us. As a result, our inventory of disposal containers has been decreasing this year. If container drop off volumes remain exceptionally low in the second half of 2010, our disposal rate may begin to decrease.
Our average utilization was 95.4% in the second quarter of 2010, an increase of 8.4% from the second quarter of 2009, and an increase of 3.6% from the first quarter of 2010. Ending utilization increased 3.7% from 93.4% as of March 31, 2010 to 97.1% as of June 30, 2010. The increase in our utilization in the second quarter of 2010 was mainly the result of strong leasing demand for our dry containers due to the combination of recovering containerized trade volumes and the 2009 decrease in global container capacity. We expect utilization for our dry containers to remain strong for the remainder of 2010.
Average lease rates for refrigerated containers in the second quarter of 2010 were 2.7% lower compared to the second quarter of 2009, and 0.3% lower than the first quarter of 2010, while average rental rates for our special containers were 0.4% lower during the second quarter of 2010 compared to the second quarter of 2009 and flat compared to the first quarter of 2010. The decrease in average lease rates for our refrigerated containers from the second quarter of 2009 to the second quarter of 2010 was primarily due to lease rate concessions provided to certain customers in 2009 for lease extension transactions. In addition, market leasing rates for new refrigerated containers remain slightly below our portfolio average rates due to a decrease in the price of new refrigerated containers over the last several years. The decrease in average leasing rates for special containers from the second quarter of 2009 to the second quarter of 2010 was primarily due to discounts associated with lease extension transactions completed in 2009.
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