Profile: TAL International Group Inc (TAL)
14 Mar 2014
TAL International Group, Inc. is a lessor of intermodal containers and chassis. The Company has two segments: Equipment leasing, in which the Company owns, leases and disposes containers and chassis from its lease fleet, as well as manages containers owned by third parties, and Equipment trading, in which the Company purchases containers from shipping line customers, and other sellers of containers, and resells these containers to container traders and users of containers for storage or one-way shipment. As of December 31, 2011, its owned fleet included 1,598,132 twenty-foot equivalent units. During the year ended December 31, 2011, the Company sold approximately 69,700 twenty-foot equivalent units of its owned containers.
The Company’s fleet primarily consists of five types of equipment: Dry Containers, Refrigerated Containers, Special Containers, Chassis and Tank containers. A dry container is essentially a steel constructed box with a set of doors on one end. Dry containers come in lengths of 20, 40 or 45 feet. They are eight feet wide, and either 8.5 or 9.5 feet tall. Dry containers are used to carry general cargo, such as manufactured component parts, consumer staples, electronics and apparel. Refrigerated containers include an integrated cooling machine and an insulated container, come in lengths of 20 or 40 feet, and are eight feet wide, and either 8.5 or 9.5 feet tall. These containers are typically used to carry perishable cargo, such as fresh and frozen produce. Most of its special containers are open top and flat rack containers. Open top containers come in similar sizes as dry containers, but do not have a fixed roof. Tank containers are stainless steel cylindrical tanks enclosed in rectangular steel frames, with the same outside dimensions as 20 foot dry containers. They carry bulk liquids, such as chemicals. An intermodal chassis is a rectangular, wheeled steel frame, generally 23.5, 40 or 45 feet in length, built specifically for the purpose of transporting intermodal containers domestically.
Equipment Leasing Segment
The Company’s equipment leasing operations include the acquisition, leasing, re-leasing and ultimate sale of multiple types of intermodal transportation equipment, primarily intermodal containers. The Company offered leasing services through approximately 225 third-party container depot facilities in 39 countries as of December 31, 2011. Its customers include APL-NOL, CMA CGM,
Hapag-LLoyd, Mediterranean Shipping Company and NYK Line.
The Company primarily leases five principal types of equipment: dry freight containers, which are used for general cargo, such as manufactured component parts, consumer staples, electronics and apparel, refrigerated containers, which are used for perishable items such as fresh and frozen foods, and special containers, which are used for heavy and oversized cargo such as marble slabs, building products and machinery, chassis, which are used for the transportation of containers domestically, and tank containers, which are used to transport bulk liquid products, such as chemicals.
The Company generally leases its equipment on a per diem basis to its customers under three types of leases: long-term leases, finance leases and service leases. Long-term leases typically have initial contractual terms ranging from 3 to 8 years. Finance leases are typically structured as full payout leases, and provide for a predictable recurring revenue stream with the lowest daily cost to the customer because customers are generally required to retain the equipment for the duration of its useful life. Service leases provide a premium per diem rate in exchange for providing customers with a level of operational flexibility by allowing the pick-up and drop-off of units during the lease term. The Company also has expired long-term leases whose fixed terms have ended but, for which the related units remain on-hire, and for which the Company continues to receive rental payments pursuant to the terms of the initial contract. Some leases have contractual terms that have features reflective of both long-term and service leases, and the Company classifies such leases as either long-term or service leases. As of December 31, 2011, 67.7% of its on-hire containers and chassis were on long-term leases, 7.6% were on finance leases, 20.7% were on service leases and 4% were on long-term leases whose fixed terms have expired. As of December 31, 2011, its long-term leases and finance leases had an average remaining lease term of 48 months.
Equipment Trading Segment
Through its operating network, the Company purchases containers from shipping line customers and other sellers of containers and resells these containers to container traders and users of containers for storage and one-way shipments. Total revenues for the equipment trading segment are primarily made up of equipment trading revenues, which represents the proceeds from sales of trading equipment.
TAL International Group Inc
100 Manhattanville Road
PURCHASE NY 10577