TAL International Group, Inc.

CIK:0001331745|SEC Filings

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Leasing revenues:
Operating leases	$ 144,898	$ 144,568
Finance leases	3,107	4,024
Other Revenue	1,218	383
Total leasing revenues	149,223	148,975
Equipment trading revenues	11,292	16,845
Equipment trading expenses	(11,265)	(15,431)
Trading margin	27	1,414
Net (loss) on sale of leasing equipment	(13,930)	(1,449)
Operating expenses:
Depreciation and amortization	63,226	58,384
Direct operating expenses	17,959	8,822
Administrative expenses	12,952	11,982
(Reversal) for doubtful accounts	(309)	(23)
Total operating expenses	93,828	79,165
Operating income	41,492	69,775
Other expenses:
Interest and debt expense	29,151	29,243
Write-off of deferred financing costs	363	0
Net loss on interest rate swaps	813	716
Total other expenses	30,327	29,959
Income before income taxes	11,165	39,816
Income tax expense	4,743	14,059
Net income	$ 6,422	$ 25,757
Net income per common share—Basic (in dollars per share)	$ 0.19	$ 0.78
Net income per common share—Diluted (in dollars per share)	0.19	0.78
Cash dividends paid per common share (in dollars per share)	$ 0.45	$ 0.72
Weighted average number of common shares outstanding—Basic (in shares)	32,987	32,861
Dilutive stock options and restricted stock (in shares)	22	149
Weighted average number of common shares outstanding—Diluted (in shares)	33,009	33,010

Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Cash flows from operating activities:

Net income

$ 6,422

$ 25,757

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

63,226

58,384

Amortization of deferred financing costs

1,709

1,979

Amortization of net loss on terminated derivative instruments designated as cash flow hedges

585

687

Amortization of lease intangibles

1,567

240

Net loss on sale of leasing equipment

13,930

1,449

Net loss on interest rate swaps

813

716

Write-off of deferred financing costs

363

Deferred income taxes

4,743

14,059

Stock compensation charge

1,067

2,002

Changes in operating assets and liabilities:

Net equipment sold (purchased) for resale activity

597

(10,554)

Other changes in operating assets and liabilities

514

(3,471)

Net cash provided by operating activities

95,536

91,248

Cash flows from investing activities:

Purchases of leasing equipment and investments in finance leases

^[1]

(97,141)

(258,552)

Proceeds from sale of equipment, net of selling costs

29,686

37,661

Cash collections on finance lease receivables, net of income earned

10,463

10,474

Other

(73)

(74)

Net cash (used in) investing activities

(57,065)

(210,491)

Cash flows from financing activities:

Purchases of treasury stock

(4,446)

Financing fees paid under debt facilities

(1,264)

(624)

Borrowings under debt facilities

140,000

230,000

Payments under debt facilities and capital lease obligations

(148,905)

(90,061)

Decrease in restricted cash

1,315

607

Common stock dividends paid

(14,844)

(23,656)

Net cash (used in) provided by financing activities

(23,698)

111,820

Net increase (decrease) in unrestricted cash and cash equivalents

14,773

(7,423)

Unrestricted cash and cash equivalents, beginning of period

58,907

79,132

Unrestricted cash and cash equivalents, end of period

73,680

71,709

Supplemental non-cash investing activities:

Equipment purchases payable

$ 40,210

$ 67,380

[1]	Represents cash disbursements for purchases of leasing equipment and investments in finance lease as reflected in the consolidated statements of cash flows for the periods indicated, but excludes cash flows associated with the purchase of equipment held for resale.

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
ASSETS:
Leasing equipment, net of accumulated depreciation and allowances of $1,249,506 and $1,218,826	$ 3,899,376	$ 3,908,292
Net investment in finance leases, net of allowances of $710 and $805	169,241	177,737
Equipment held for sale	84,971	74,899
Revenue earning assets	4,153,588	4,160,928
Unrestricted cash and cash equivalents	73,680	58,907
Restricted cash	28,987	30,302
Accounts receivable, net of allowances of $1,062 and $1,314	91,228	95,709
Goodwill	74,523	74,523
Other assets	19,513	13,620
Fair value of derivative instruments	0	87
Total assets	4,441,519	4,434,076
LIABILITIES AND STOCKHOLDERS' EQUITY:
Equipment purchases payable	40,210	20,009
Fair value of derivative instruments	52,921	20,348
Accounts payable and other accrued expenses	53,006	56,096
Net deferred income tax liability	450,176	456,123
Debt, net of unamortized deferred financing costs of $24,437 and $25,245	3,208,409	3,216,488
Total liabilities	3,804,722	3,769,064
Stockholders' equity:
Preferred stock, $0.001 par value, 500,000 shares authorized, none issued	0	0
Common stock, $0.001 par value, 100,000,000 shares authorized, 37,307,134 and 37,167,134 shares issued respectively	37	37
Treasury stock, at cost, 3,911,843 shares	(75,310)	(75,310)
Additional paid-in capital	512,052	511,297
Accumulated earnings	239,594	248,183
Accumulated other comprehensive (loss)	(39,576)	(19,195)
Total stockholders' equity	636,797	665,012
Total liabilities and stockholders' equity	$ 4,441,519	$ 4,434,076