|
|
|
|
|
Delaware
|
|
6770
|
|
32-0163571
|
(State
or other jurisdiction of
incorporation or organization) |
|
(Primary
Standard Industrial
Classification Code Number) |
|
(I.R.S.
Employer
Identification Number) |
Christopher
A. Wilson, Esq.
General
Counsel, Vice President & Secretary
39
East Union Street
Pasadena,
California 91103
(626) 584-9722
(626)
795-8090 — Facsimile
|
Alan
B. Spatz, Esq.
Troy
Gould P.C.
1801
Century Park East, Suite 1600
Los
Angeles, California 90067
(310) 553-4441
(310) 201-4746 —
Facsimile
|
The
information in this preliminary prospectus is not complete and
may be
changed. Warrant holders may not exercise their warrants until
this
registration statement filed with the Securities and Exchange Commission
is effective. This prospectus is a post-effective amendment to
our initial
public offering pursuant to a prospectus dated April 5, 2006 and
is not an
offer to sell securities and is not soliciting an offer to buy
these
securities.
|
|
Page
|
|||
Prospectus
Summary
|
2
|
|||
The Offering | 5 | |||
Selected Financial
Data
|
7
|
|||
Market
Prices
|
9
|
|||
Risk
Factors
|
10
|
|||
Use
of Proceeds
|
18
|
|||
Management’s
Discussion and Analysis of Financial Condition and Results
of
Operations
|
19
|
|||
Unaudited
Pro Forma Condensed Combined Financial Statements
|
32
|
|||
Business
|
35
|
|||
Management
|
44
|
|||
Compensation
of Executive Officers
|
48
|
|||
Security Ownership of Certain Beneficial Owners and Management | 52 | |||
Certain
Transactions
|
54
|
|||
Description
of Securities
|
55
|
|||
Legal
Matters
|
58
|
|||
Experts
|
58
|
|||
Where
You Can Find Additional Information
|
58
|
|||
Index
to Consolidated Financial Statements
|
F-1
|
·
|
recurring
revenues from leases with an average duration of more than 12
months;
|
·
|
monthly
lease rates that recoup our unit investment within an average of
30 months;
|
·
|
long
useful asset lives exceeding 25 years with low maintenance and high
residual values;
|
·
|
the
ability to leverage the relatively fixed costs of our CSCs to service
a
large fleet of storage container products;
and
|
·
|
incremental
leasing operating margins in excess of
50%.
|
Securities
offered
|
|
8,625,000
shares of common stock issuable upon exercise of our warrants included
as
part of the units issued in our initial public offering pursuant
to a
prospectus dated
April
5, 2006.
|
Common
stock:
|
||
Number
of shares outstanding before this offering:
|
1,875,000 shares
|
|
Number
of shares to be outstanding after this offering:
|
9,690,099 shares
|
|
Warrants:
|
||
Number
outstanding before the offering and the private placement:
|
0
warrants
|
|
Number
to be outstanding after the offering and the private
placement:
|
10,458,333
warrants, including 583,333 warrants which Ronald F. Valenta
and John O.
Johnson purchased in a private placement on April 10, 2006 and
500,000
warrants issued to Bison Capital on September 13, 2007 in connection
with
the acquisition of Royal Wolf.
|
|
Exercisability
|
Each
warrant is exercisable for one share of common stock.
|
|
Exercise
price
|
$6.00
|
|
Exercise
period
|
The
warrants will become exercisable upon the effective date of this
post-effective amendment.
|
|
The
warrants will expire at 5:00 p.m., Los Angeles time, on April
5, 2010 or earlier upon redemption.
|
||
Use
of Proceeds
|
We
will receive $6.00 for each warrant exercised into a share of common
stock. These proceeds will fund our working capital and other general
corporate purposes, including possible acquisitions of
businesses.
|
|
Redemption
|
We
may redeem the outstanding warrants (including any warrants issued
upon
exercise of the unit purchase option) at any time after the warrants
become exercisable and with the prior consent of the
representative:
|
|
· in
whole and not in
part;
|
||
· at
a price of $.01 per
warrant;
|
||
· upon
a minimum of 30 days’
prior written notice of redemption; and
|
||
· if,
and only if, the last sales
price of our common stock equals or exceeds $11.50 per share for any
20 trading days within a 30-trading day period ending three business
days
before we send the notice of redemption.
|
||
We
have established the above conditions to our exercise of redemption
rights
to provide (i) warrant holders with adequate notice of exercise only
after the then-prevailing common stock price is substantially above
the
warrant exercise price and (ii) a sufficient differential between the
then-prevailing common stock price and the warrant exercise price
so there
is a buffer to absorb the market reaction, if any, to our redemption
of
the warrants. If the foregoing conditions are satisfied and we
issue a
notice of redemption, each warrant holder can exercise his or her
warrant
prior to the scheduled redemption
date.
|
Since
we may redeem the warrants only with the prior written consent
of the
representative and the representative may hold warrants subject
to
redemption, the representative may have a conflict of interest
in
determining whether or not to consent to such redemption. We
cannot assure
you that the representative will consent to such redemption if
it is not
in its best interest, even if it is in our best
interest.
|
||
AMEX
symbols for our:
|
||
Common
stock
|
GFN
|
|
Risks
|
You
should carefully consider the information set forth in the
section
entitled “Risk Factors” beginning on page 10 of this prospectus so
that you can understand the risks associated with an investment
in our
securities.
|
Predecessor
|
Predecessor
|
Successor
|
|||||||||||||||||||||||
|
|
Six Months
|
|
|
Quarter
|
Period from
|
Quarter
|
||||||||||||||||||
|
Year
Ended
|
Ended
|
Year Ended
|
Ended
|
July 1, to
|
Ended
|
|||||||||||||||||||
|
December
31,
|
June
30,
|
September 30,
|
September 13,
|
September 30,
|
||||||||||||||||||||
|
2003
|
2004
|
2005
|
2006
|
2007
|
2006
|
2007
|
2007
|
|||||||||||||||||
(In
thousands of dollars)
|
|||||||||||||||||||||||||
Sale
of containers
|
$
|
16,947
|
$
|
26,141
|
$
|
13,563
|
$
|
34,473
|
$
|
52,929
|
$
|
10,626
|
$
|
10,944
|
$
|
3,278
|
|||||||||
Leasing
of containers
|
8,540
|
12,351
|
7,224
|
15,921
|
21,483
|
4,876
|
4,915
|
1,121
|
|||||||||||||||||
|
25,487
|
38,492
|
20,787
|
50,394
|
74,412
|
15,502
|
15,859
|
4,399
|
|||||||||||||||||
Operating
income (loss)
|
1,447
|
2,926
|
560
|
2,412
|
4,672
|
970
|
1,530
|
(111
|
)
|
||||||||||||||||
Other
income (expense), net
|
1,596
|
(2,242
|
)
|
(662
|
)
|
(2,626
|
)
|
(3,870
|
)
|
(771
|
)
|
(1,062)
|
|
2,645
|
|||||||||||
Income
before provision for income taxes and minority interest
|
3,043
|
684
|
(102
|
)
|
(214
|
)
|
802
|
|
199
|
468
|
2,534
|
||||||||||||||
Net
income (loss)
|
2,244
|
284
|
(177
|
)
|
(428
|
)
|
312
|
50
|
288
|
|
1,522
|
Predecessor
|
|
Successor
|
|
||||||||||||||||
|
|
December
31,
|
|
June
30,
|
|
September 30,
|
|
||||||||||||
|
|
2003
|
|
2004
|
|
2005
|
|
2006
|
|
2007
|
|
2007
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
||||||
(In
thousands of dollars)
|
|||||||||||||||||||
Trade
and other receivables, net
|
$
|
3,901
|
$
|
5,479
|
$
|
6,002
|
$
|
7,451
|
$
|
13,322
|
$
|
15,356
|
|||||||
Inventories
|
2,908
|
1,669
|
3,066
|
5,460
|
5,472
|
10,592
|
|||||||||||||
Container
for lease fleet, net
|
13,080
|
17,511
|
19,644
|
27,773
|
40,928
|
56,899
|
|||||||||||||
Total
assets
|
24,953
|
30,728
|
35,930
|
47,903
|
68,788
|
154,656
|
|||||||||||||
Total
current liabilities
|
9,009
|
11,070
|
8,997
|
16,580
|
20,859
|
32,300
|
|||||||||||||
Long-term
debt and obligations, net
|
11,432
|
16,081
|
22,993
|
27,155
|
33,811
|
48,908
|
|||||||||||||
Net
assets
|
4,322
|
3,165
|
3,586
|
3,018
|
13,040
|
64,379
|
Units
|
Common
Stock
|
Warrants
|
|||||||||||||||||
High
|
Low
|
High
|
Low
|
High
|
Low
|
||||||||||||||
FY
2008:
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|||||||||||||
Third
Quarter (through January 25, 2008)
|
$
|
12.15
|
$
|
11.85
|
$
|
9.05
|
$
|
8.87
|
$
|
3.24
|
$
|
3.14
|
|||||||
Second
Quarter
|
$
|
13.70
|
$
|
10.00
|
$
|
9.89
|
$
|
7.90
|
$
|
4.05
|
$
|
2.20
|
|||||||
First
Quarter
|
$
|
10.05
|
$
|
8.80
|
$
|
8.00
|
$
|
7.43
|
$
|
2.20
|
$
|
1.60
|
|||||||
FY
2007:
|
|||||||||||||||||||
Fourth
Quarter
|
$
|
9.75
|
$
|
9.00
|
$
|
7.95
|
$
|
7.56
|
$
|
1.96
|
$
|
1.45
|
|||||||
|
|||||||||||||||||||
Third
Quarter
|
$
|
9.60
|
$
|
8.50
|
$
|
7.95
|
$
|
7.46
|
$
|
1.80
|
$
|
1.10
|
|||||||
|
|||||||||||||||||||
Second
Quarter
|
$
|
8.00
|
$
|
7.81
|
$
|
7.70
|
$
|
7.22
|
$
|
1.15
|
$
|
0.62
|
|||||||
|
|||||||||||||||||||
First
Quarter
|
$
|
8.45
|
$
|
7.75
|
$
|
7.36
|
$
|
7.22
|
$
|
0.85
|
$
|
0.63
|
FY
2006:
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|||||||||||||
Fourth
Quarter
|
$
|
8.06
|
$
|
7.75
|
$
|
7.35
|
$
|
7.24
|
$
|
0.80
|
$
|
0.63
|
·
|
may
significantly reduce the equity interest of
investors;
|
·
|
may
subordinate the rights of holders of common stock if preferred
stock is
issued with rights senior to those afforded to our common
stock;
|
·
|
will
likely cause a change in control if a substantial number of our
shares of
common stock are issued, which may affect, among other things,
our ability
to use our net operating loss carry forwards, if any, and could
result in
the resignation or removal of our present officers and directors;
and
|
·
|
may
adversely affect prevailing market prices for our common
stock.
|
·
|
default
and foreclosure on our assets if our operating revenues after a
business
combination are insufficient to repay our debt
obligations;
|
·
|
acceleration
of our obligations to repay the indebtedness even if we make all
principal
and interest payments when due if certain covenants that require
the
maintenance of certain financial ratios or reserves are breached
without a
waiver or renegotiation of that
covenant;
|
·
|
our
immediate payment of all principal and accrued interest, if any,
if the
debt security is payable on demand;
and
|
·
|
our
inability to obtain necessary additional financing if the debt
security
instrument covenants restricting our ability to obtain such financing
while the debt instrument is
outstanding.
|
·
|
actual
or anticipated variations in our quarterly operating results;
|
·
|
changes
in interest rates and other general economic conditions;
|
·
|
significant
acquisitions or business combinations, strategic partnerships,
joint
ventures or capital commitments by or involving us or our competitors;
|
·
|
operating
and stock price performance of other companies that investors deem
comparable to us;
|
·
|
news
reports relating to trends, concerns, litigation, regulatory changes
and
other issues in our industry;
|
·
|
geopolitical
conditions such as acts or threats of terrorism or military conflicts;
and
|
·
|
relatively
low trading volume.
|
|
Predecessor
|
Successor
|
Combined
|
||||||||||
|
Quarter
|
Period
from
|
Quarter
|
Quarter
|
|||||||||
|
Ended
|
July
1, to
|
Ended
|
Ended
|
|||||||||
|
September
30,
|
September
13,
|
September
30,
|
September
30,
|
|||||||||
|
2006
|
2007
|
2007
|
2007
|
|||||||||
Revenues
|
|
|
|
||||||||||
Sale
of containers
|
$
|
10,626
|
$
|
10,944
|
$
|
3,278
|
$
|
14,222
|
|||||
Leasing
of containers
|
4,876
|
4,915
|
1,121
|
6,036
|
|||||||||
|
15,502
|
15,859
|
4,399
|
20,258
|
|||||||||
|
|||||||||||||
Costs
and expenses
|
|||||||||||||
Cost
of sales
|
9,776
|
9,466
|
2,947
|
12,413
|
|||||||||
Leasing,
selling and general expenses
|
4,050
|
4,210
|
1,225
|
5,435
|
|||||||||
Depreciation
and amortization
|
706
|
653
|
338
|
991
|
|||||||||
|
|||||||||||||
Operating
income (loss)
|
970
|
1,530
|
(111
|
)
|
1,419
|
||||||||
|
|||||||||||||
Interest income
|
2
|
14
|
974
|
988
|
|||||||||
Interest expense
|
(771
|
)
|
(947
|
)
|
(374
|
)
|
(1,321
|
)
|
|||||
Foreign
currency exchange gain (loss)
|
(2
|
)
|
(129
|
)
|
2,045
|
1,916
|
|||||||
|
(771
|
)
|
(1,062
|
)
|
2,645
|
1,583
|
|||||||
|
|||||||||||||
Income
before provision for income taxes and minority
interest
|
199
|
468
|
2,534
|
3,002
|
|||||||||
|
|||||||||||||
Provision
for income taxes
|
149
|
180
|
855
|
1,035
|
|||||||||
|
|||||||||||||
Minority
interest
|
—
|
—
|
157
|
157
|
|||||||||
|
|||||||||||||
Net
income
|
$
|
50
|
$
|
288
|
$
|
1,522
|
$
|
1,810
|
Quarter
Ended September 30,
|
|||||||
2006
|
2007
|
||||||
(in
millions)
|
|||||||
Salaries,
wages and related
|
$
|
2.4
|
$
|
2.9
|
|||
Rent
|
0.1
|
0.1
|
|||||
Customer
service center (“CSC”) operating costs
|
0.6
|
0.8
|
|||||
Business
promotion
|
0.2
|
0.2
|
|||||
Travel
and meals
|
0.2
|
0.3
|
|||||
IT
and telecommunications
|
0.1
|
0.2
|
|||||
Professional
costs
|
0.3
|
0.3
|
|||||
Other
|
0.1
|
0.2
|
|||||
|
|||||||
$
|
4.0
|
$
|
5.0
|
Predecessor
|
|||||||||||||
Six
Months
|
|||||||||||||
Year
Ended
|
Ended
|
Year
Ended
|
|||||||||||
June
30,
|
December
31,
|
||||||||||||
2007
|
2006
|
2005
|
2004
|
||||||||||
(-in
Thousands-)
|
|||||||||||||
Revenues
|
|
|
|
|
|||||||||
Sale
of containers
|
$
|
52,929
|
$
|
34,473
|
$
|
13,563
|
$
|
26,141
|
Leasing
of containers
|
21,483
|
15,921
|
7,224
|
12,351
|
74,412
|
50,394
|
20,787
|
38,492
|
||||||||||
|
|
|
|
|
|||||||||
Costs
and expenses
|
|||||||||||||
Cost
of sales
|
46,402
|
32,661
|
12,843
|
24,079
|
|||||||||
Leasing,
selling and general expenses
|
20,761
|
12,653
|
5,904
|
8,983
|
|||||||||
Depreciation
and amortization
|
2,577
|
2,668
|
1,480
|
2,504
|
|||||||||
|
|
|
|
|
|||||||||
Operating
income
|
4,672
|
2,412
|
560
|
2,926
|
|||||||||
|
|
|
|
|
|||||||||
Interest
income
|
413
|
375
|
80
|
87
|
|||||||||
Interest
expense
|
(4,378
|
)
|
(3,017
|
)
|
(1,127
|
)
|
(2,110
|
)
|
|||||
Foreign
currency exchange gain (loss)
|
95
|
16
|
252
|
(287
|
)
|
||||||||
Other,
net
|
—
|
—
|
133
|
68
|
|||||||||
(3,870
|
)
|
(2,626
|
)
|
(662
|
)
|
(2,242
|
)
|
||||||
|
|
|
|
|
|||||||||
Income(loss)
before provision for income taxes
|
802
|
(214
|
)
|
(102
|
)
|
684
|
|||||||
|
|
|
|
|
|||||||||
Provision
for income taxes
|
490
|
214
|
75
|
400
|
|||||||||
Net
income(loss)
|
$
|
312
|
$
|
(428
|
)
|
$
|
(177
|
)
|
$
|
284
|
Year
Ended June 30,
|
|||||||
2007
|
2006
|
||||||
(in
millions)
|
|||||||
Salaries,
wages and related
|
$
|
10.1
|
$
|
6.6
|
|||
Share-based
payments
|
3.2
|
0.2
|
|||||
Rent
|
0.2
|
0.2
|
|||||
CSC
operating costs
|
2.7
|
2.3
|
|||||
Business
promotion
|
0.8
|
0.8
|
|||||
Travel
and meals
|
0.8
|
0.7
|
|||||
IT
and telecommunications
|
0.6
|
0.4
|
|||||
Professional
costs
|
1.4
|
0.7
|
|||||
Other
|
1.0
|
0.8
|
|||||
|
|
||||||
$
|
20.8
|
$
|
12.7
|
Year
Ended
|
Annualized
Six Months Ended
|
||||||
June 30,
|
June 30,
|
||||||
2006
|
2005
|
||||||
|
(in
millions)
|
||||||
Salaries,
wages and related
|
$
|
7.4
|
$
|
7.5
|
|||
Rent
|
0.2
|
0.1
|
|||||
CSC
operating costs
|
2.3
|
1.5
|
|||||
Business
promotion
|
0.8
|
0.5
|
|||||
Travel
and meals
|
0.7
|
0.6
|
|||||
IT
and communications
|
0.4
|
0.4
|
|||||
Professional
costs
|
0.7
|
0.8
|
|||||
Other
|
0.2
|
0.4
|
|||||
|
|||||||
$
|
12.7
|
$
|
11.8
|
Annualized
Six Months Ended
|
Year
Ended
|
||||||
|
June 30,
|
December 31,
|
|||||
|
2005
|
2004
|
|||||
(in
millions)
|
|||||||
Manpower
|
$
|
7.5
|
$
|
5.6
|
|||
Rent
|
0.1
|
0.1
|
|||||
CSC
operating costs
|
1.5
|
1.0
|
|||||
Business
promotion
|
0.5
|
0.4
|
|||||
Travel
and meals
|
0.6
|
0.5
|
|||||
IT
and Telco
|
0.4
|
0.5
|
|||||
Professional
costs
|
0.8
|
0.5
|
|||||
Other
|
0.4
|
0.4
|
|||||
|
|||||||
|
$
|
11.8
|
$
|
9.0
|
|
Predecessor
|
Successor
|
Combined
|
||||||||||
|
Quarter
|
Period
from
|
Quarter
|
Quarter
|
|||||||||
|
Ended
|
July
1, to
|
Ended
|
Ended
|
|||||||||
|
September
30,
|
September
13,
|
September
30,
|
September
30,
|
|||||||||
|
2006
|
2007
|
2007
|
2007
|
|||||||||
|
|
(in
thousands)
|
|
||||||||||
Operating
income (loss)
|
$
|
970
|
$
|
1,530
|
$
|
(111
|
)
|
$
|
1,419
|
||||
|
|||||||||||||
Add
- depreciation and amortization
|
706
|
653
|
338
|
991
|
|||||||||
EBITDA
|
1,676
|
2,183
|
227
|
2,410
|
|||||||||
Add
-
|
|||||||||||||
Stock-based
compensation
|
—
|
—
|
34
|
34
|
|||||||||
Contributed
services
|
—
|
—
|
14
|
14
|
|||||||||
Adjusted
EBITDA
|
$
|
1,676
|
$
|
2,183
|
$
|
275
|
$
|
2,458
|
|
Predecessor
|
||||||||||||
|
|
Six
Months
|
|
||||||||||
|
Year
Ended
|
Ended
|
Year
Ended
|
||||||||||
|
June
30,
|
December
31,
|
|||||||||||
|
2007
|
2006
|
2005
|
2004
|
|||||||||
|
|
(in
thousands)
|
|
||||||||||
Operating
income
|
$
|
4,672
|
$
|
2,412
|
$
|
560
|
$
|
2,926
|
|||||
Add
- depreciation and amortization
|
2,577
|
2,668
|
1,480
|
2,504
|
|||||||||
EBITDA
|
7,249
|
5,080
|
2,040
|
5,430
|
|||||||||
Add
-
|
|||||||||||||
Stock-based
compensation
|
3,316
|
—
|
—
|
—
|
|||||||||
Contributed
services
|
—
|
—
|
—
|
—
|
|||||||||
Adjusted
EBITDA
|
$
|
10,565
|
$
|
5,080
|
$
|
2,040
|
$
|
5,430
|
|
Predecessor
|
||||||||||||
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
|||||||||
|
(in
thousands)
|
||||||||||||
For
the Fiscal Year Ended June 30, 2007:
|
|
|
|
|
|||||||||
Revenues
|
$
|
15,502
|
$
|
18,040
|
$
|
19,894
|
$
|
21,164
|
|||||
Gross
profit
|
850
|
2,077
|
1,420
|
2,219
|
|||||||||
Operating
income (loss)
|
970
|
(773
|
)
|
1,497
|
3,126
|
||||||||
Net
income (loss)
|
50
|
(2,199
|
)
|
226
|
2,409
|
||||||||
For
the Fiscal Year Ended June 30, 2006:
|
|||||||||||||
Revenues
|
$
|
11,254
|
$
|
13,245
|
$
|
11,593
|
$
|
14,277
|
|||||
Gross
profit
|
487
|
954
|
465
|
925
|
|||||||||
Operating
income
|
237
|
1,158
|
808
|
199
|
|||||||||
Net
income (loss)
|
(357
|
)
|
118
|
(95
|
)
|
(99
|
)
|
|
Predecessor
|
Successor
|
Combined
|
||||||||||
|
Quarter
Ended
|
Period
from
July
1, to
|
Period
from
September
14, to
|
Quarter
Ended
|
|||||||||
|
September
30,
|
September
13,
|
September
30,
|
September
30,
|
|||||||||
|
2006
|
2007
|
2007
|
2007
|
|||||||||
|
|
(in
thousands)
|
|
||||||||||
Net
cash provided by operating activities
|
$
|
2,638
|
$
|
4,294
|
$
|
(1,679
|
)
|
$
|
2,615
|
||||
|
|||||||||||||
Net
cash used by investing activities
|
$
|
(6,799
|
)
|
$
|
(3,078
|
)
|
$
|
(54,378
|
)
|
$
|
(57,456
|
)
|
|
|
|||||||||||||
Net
cash provided by financing activities
|
$
|
3,624
|
$
|
(1,807
|
)
|
$
|
3,007
|
$
|
1,200
|
|
Predecessor
Successor
Combined
|
||||||||||||
|
|
Six
Months
|
|
||||||||||
Year
Ended
|
Ended
|
Year
Ended
|
|||||||||||
June
30,
|
December
31,
|
||||||||||||
|
2007
|
|
2006
|
|
2005
|
|
2004
|
||||||
|
|
(in
thousands)
|
|
||||||||||
|
|
|
|
|
|||||||||
Net
cash provided by operating activities
|
$
|
8,956
|
$
|
10,054
|
$
|
1,530
|
$
|
4,362
|
|||||
|
|||||||||||||
Net
cash used by investing activities
|
$
|
(21,914
|
)
|
$
|
(18,962
|
)
|
$
|
(10,180
|
)
|
$
|
(9,769
|
)
|
|
|
|||||||||||||
Net
cash provided by financing activities
|
$
|
13,389
|
$
|
8,966
|
$
|
9,185
|
$
|
4,091
|
·
|
In
December 2005, Royal Wolf acquired the assets of Cairns-based Cape
Containers for cash of $0.6 million;
|
·
|
In
April 2006, Royal Wolf acquired the assets of Melbourne-based Australian
Container Network for $3.7 million in cash.
|
|
Payment
Due by Fiscal Year Ending June 30,
|
|||||||||||||||
|
|
|
2009-
|
2011-
|
2013
and
|
|||||||||||
Contractual
Obligations
|
Total
|
2008
|
2010
|
2012
|
Thereafter
|
|||||||||||
|
(In
thousands)
|
|||||||||||||||
|
|
|||||||||||||||
Capital
leases obligations, including interest
|
$
|
1,426
|
$
|
1,005
|
$
|
421
|
$
|
—
|
$
|
—
|
||||||
Operating
leases
|
6,764
|
3,191
|
2,225
|
925
|
423
|
|||||||||||
Long-term
debt — principal
|
42,846
|
20,150
|
22,696
|
—
|
—
|
|||||||||||
Long-term
debt — interest
|
4,656
|
1,552
|
3,104
|
—
|
—
|
|||||||||||
|
||||||||||||||||
|
47,502
|
21,702
|
25,800
|
—
|
—
|
|||||||||||
|
||||||||||||||||
Total
|
$
|
55,692
|
$
|
25,898
|
$
|
28,446
|
$
|
925
|
$
|
423
|
|
GFN
|
Royal Wolf
|
Pro Forma
Adjustments
|
Pro Forma
Combined
|
|||||||||
|
(In
thousands, except share and per share data)
|
||||||||||||
Revenues
|
$
|
—
|
$
|
20,258
|
$
|
—
|
$
|
20,258
|
|||||
Costs
and expenses
|
|||||||||||||
Cost
of sales
|
—
|
12,413
|
—
|
12,413
|
|||||||||
Leasing,
selling and general expenses
|
459
|
4,976
|
59
|
(h)
|
5,494
|
||||||||
Depreciation
and amortization
|
1
|
990
|
65
|
(b)
|
1,453
|
||||||||
|
355
|
(c) | |||||||||||
|
42
|
(d) | |||||||||||
Operating
income (loss)
|
(460
|
)
|
1,879
|
(521
|
)
|
898
|
|||||||
Interest
income
|
959
|
29
|
(768)
|
(f)
|
220
|
||||||||
Interest
expense
|
(43
|
)
|
(
1,278
|
)
|
(341)
|
(a)
|
(1,777
|
)
|
|||||
|
(32)
|
(e) | |||||||||||
|
(83)
|
(g) | |||||||||||
Other,
net
|
202
|
1,714
|
—
|
1,916
|
|||||||||
|
1,118
|
465
|
(1,224
|
)
|
359
|
||||||||
Income
(loss) before provision for income taxes and minority interest
|
658
|
2,344
|
(1,745
|
)
|
1,257
|
||||||||
Provision
(credit) for income taxes
|
116
|
919
|
(736)
|
(i)
|
299
|
||||||||
Minority
interest
|
157
|
—
|
(68)
|
(j)
|
89
|
||||||||
Net
income (loss)
|
$
|
385
|
$
|
1,425
|
$
|
(941
|
)
|
$
|
869
|
||||
Net
income per share:
|
|||||||||||||
Basic
|
$
|
0.09
|
|||||||||||
Diluted
|
$
|
0.07
|
|||||||||||
Weighted
average shares outstanding:
|
|||||||||||||
Basic
|
9,690,100
|
(k)
|
|||||||||||
Diluted
|
12,019,300
|
(k)
|
|
GFN
|
Royal Wolf
|
Pro Forma
Adjustments
|
Pro Forma
Combined
|
|||||||||
|
(In
thousands, except share and per share data)
|
||||||||||||
Revenues
|
$
|
—
|
$
|
74,412
|
$
|
—
|
$
|
74,412
|
|||||
Costs
and expenses
|
|||||||||||||
Cost
of sales
|
—
|
46,402
|
—
|
46,402
|
|||||||||
Leasing,
selling and general expenses
|
1,125
|
20,761
|
292
|
(h)
|
22,178
|
||||||||
Depreciation
and amortization
|
1
|
2,577
|
1,467
|
(b)
|
6,558
|
||||||||
|
2,031
|
(c) | |||||||||||
|
482
|
(d) | |||||||||||
Operating
income (loss)
|
(1,126
|
)
|
4,672
|
(4,272
|
)
|
(726
|
)
|
||||||
Interest
income
|
2,646
|
413
|
(2,474)
|
(f)
|
585
|
||||||||
Interest
expense
|
(93
|
)
|
(
4,378
|
)
|
(2,639)
|
(a)
|
(7,651
|
)
|
|||||
|
(143)
|
(e) | |||||||||||
|
(398)
|
(g) | |||||||||||
Other,
net
|
(7
|
)
|
95
|
—
|
88
|
||||||||
|
2,546
|
(3,870
|
)
|
(5,654
|
)
|
(6,978
|
)
|
||||||
Income
(loss) before provision for income taxes and minority interest
|
1,420
|
802
|
(9,926
|
)
|
(7,704
|
)
|
|||||||
Provision
(credit) for income taxes
|
565
|
490
|
(3,945)
|
(i)
|
(2,890
|
)
|
|||||||
Minority
interest
|
—
|
—
|
(803)
|
(j)
|
(803
|
)
|
|||||||
Net
income (loss)
|
$
|
855
|
$
|
312
|
$
|
(5,178
|
)
|
$
|
(4,011
|
)
|
|||
Net
loss per share:
|
|||||||||||||
Basic
|
$
|
(0.41
|
)
|
||||||||||
Diluted
|
$
|
(0.41
|
)
|
||||||||||
Weighted
average shares outstanding:
|
|||||||||||||
Basic
|
9,690,100
|
(k)
|
|||||||||||
Diluted
|
9,690,100
|
(k)
|
|
For
the three months ended
|
For
the year ended
|
|||||||||||
|
September 30,
2007
|
June
30, 2007
|
|||||||||||
|
Basic
|
Diluted
|
Basic
|
Diluted
|
|||||||||
|
|
|
|
|
|||||||||
Common
stock issued to initial stockholder
|
1,875,000
|
1,875,000
|
1,875,000
|
1,875,000
|
|||||||||
Common
stock issued in connection with the IPO
|
7,500,000
|
7,500,000
|
7,500,000
|
7,500,000
|
|||||||||
Common
stock issued in connection with underwriters’ over-allotment option
|
1,125,000
|
1,125,000
|
1,125,000
|
1,125,000
|
|||||||||
Common
stock converted to cash
|
(809,900
|
)
|
(809,900
|
)
|
(809,900
|
)
|
(809,900
|
)
|
|||||
Assumed
exercise of warrants and stock options
|
—
|
2,329,200
|
—
|
—
|
|||||||||
|
9,690,100
|
12,019,300
|
9,690,100
|
9,690,100
|
·
|
recurring
revenues from leases with an average duration of more than 12
months;
|
·
|
monthly
lease rates that recoup our unit investment within an average of
30 months;
|
·
|
long
useful asset lives exceeding 25 years with low maintenance and high
residual values;
|
·
|
the
ability to leverage the relatively fixed costs of our CSCs to service
a
large fleet of storage container products;
and
|
·
|
incremental
leasing operating margins in excess of
50%.
|
|
· |
The
level of knowledge among potential customers regarding the availability
and benefits of containerized storage in key Australian markets,
such as
the construction and mining industries, is still low;
|
|
|
|
|
·
|
Suppliers
and customers continue to develop further uses for portable containers,
thereby broadening the market for portable
containers; and
|
|
|
|
|
·
|
As
the market leader in Australia, Royal Wolf has consistently achieved
organic growth based, in part, on growth in the market as a
whole.
|
Competitor
|
Scope
of
Operations
|
||
Royal
Wolf
|
|
|
National
|
Simply
Containers
|
|
|
National
|
Macfield
|
|
|
Regional
|
ANL
CGM
|
|
|
National
|
|
·
|
Engineering,
construction and resources — approximately 50%.
|
|
|
|
|
·
|
Non-residential
building construction — approximately 35%.
|
|
|
|
|
·
|
Recreation
and holiday market — approximately
15%.
|
Competitor
|
Scope
of
Operations
|
||
Coates
|
|
|
National
|
Ausco
|
|
|
National
|
Nomad
|
|
|
National
|
Atco
|
|
|
National
|
Competitor
|
Scope
of
Operations
|
||
Macfield
|
|
|
National
|
Cronos
|
|
|
National
|
Simply
Containers
|
|
|
National
|
· |
In
December 2005, Royal Wolf acquired the assets of Cairns-based Cape
Containers for a purchase price of $619,000. This purchase resulted
in the
acquisition of 173 portable storage units and the related customer
base;
|
· | In March 2006, Royal Wolf purchased the remaining shares of Royal Wolf-Hi Tech, a Newcastle-based joint venture, for $591,000, which added a further 676 portable storage units to the Royal Wolf fleet; |
· | In April 2006, Royal Wolf acquired the assets of Melbourne-based Australian Container Network, or ACN, for $4.1 million. This acquisition added a further 891 units to Royal Wolf’s fleet; and |
· | In May 2007, Royal Wolf acquired the assets of Gosford-based Professional Sales & Hire (Terrigal Motors Ltd.) for $303,000. This was a small but strategically important transaction that added a further 140 units to Royal Wolf’s fleet. |
· |
In
November 2007 Royal Wolf acquired GE SeaCo. Royal Wolf paid
$17.9 million to acquire substantially all of the assets
of GE SeaCo.
The
acquisition added more than 6,300 containers to Royal
Wolf’s fleet, of
which 4,600 units are leased by approximately 200 mid-sized
businesses and
approximately 20 national accounts serving such industries
as road and
rail, moving and storage and logistics. GE
SeaCo exited the domestic container leasing market in
Australia after 25
years through this transaction and the simultaneous sale
of its tank
container business. Royal Wolf assumed agreements in
connection with the
acquisition, including several depot and agency contracts
and an agreement
to purchase storage containers from affiliates of GE
SeaCo.
|
Portable
storage containers:
|
|
10-foot,
20-foot and 40-foot general purpose units
|
|
|
Double
pallet-wide high cube units
|
|
|
Hazardous
goods containers
|
|
|
Refrigerated
containers
|
Portable
container buildings:
|
|
Site
offices and Cabins
|
|
|
Workforce
accommodation units
|
|
|
Luxury
accommodation units
|
|
|
Ablutions
blocks
|
Freight
Containers:
|
|
Curtain-side
containers
|
|
|
20-foot and
40-foot Hi-cube containers
|
|
|
20-foot and
40-foot two pallet-wide containers
|
|
|
Side-opening
door containers
|
U.S.$
|
Percent
|
||||||
(In
millions)
|
|||||||
Sales
revenues
|
$
|
40,338
|
76
|
%
|
|||
Leasing
revenues
|
$
|
14,177
|
66
|
%
|
|||
Containers
in lease fleet
|
10,417
|
65
|
%
|
U.S.$
|
Percent
|
||||||
(In
millions)
|
|
||||||
Sales
revenues
|
$
|
9,539
|
18
|
%
|
|||
Leasing
revenues
|
$
|
1,778
|
8
|
%
|
|||
Containers
in lease fleet
|
962
|
6
|
%
|
U.S.$
|
Percent
|
||||||
(In
millions)
|
|||||||
Sales
revenues
|
$
|
3,052
|
6
|
%
|
|||
Leasing
revenues
|
$
|
5,528
|
26
|
%
|
|||
Containers
in lease fleet
|
4,569
|
29
|
%
|
|
·
|
Rapid
deployment storage for the military, emergency services, and disaster
relief;
|
|
|
|
|
·
|
Portable
work camps for the and resources industry, including accommodations,
ablution and kitchen containers;
|
|
·
|
Low-cost
accommodations for remote communities and caravan
parks;
|
|
|
|
|
·
|
Offices,
workshops or storerooms in a growing range of sizes and
configurations;
|
|
|
|
|
·
|
Temporary
storage for in retail and wholesale industries for excess inventory;
and
|
|
|
|
|
·
|
Farm
storage for cattle feed, farm equipment, fertilizers, and other
items.
|
Suppliers
|
Type
of Product Purchased
|
Percentage
of Container Purchases
|
|||||
Nantong
CIMC
|
New
|
25
|
% | ||||
Triton
Container
|
Used
|
12
|
%
|
||||
Shanghai
Baoshan
|
New
|
7
|
%
|
||||
Maersk
|
Used
|
5
|
%
|
||||
Eastern
Container Alliance
|
Used
|
4
|
%
|
Name
|
|
Age
|
|
Position
|
||
Ronald
F. Valenta
|
|
|
49
|
|
|
Chief
Executive Officer and Director
|
John
O. Johnson
|
|
|
46
|
|
|
Chief
Operating Officer
|
Charles
E. Barrantes
|
|
|
55
|
|
|
Executive
Vice President and Chief Financial Officer
|
Christopher
A. Wilson
|
40
|
|
General
Counsel, Vice President & Secretary
|
|||
Robert
Allan
|
|
|
51
|
|
|
Chief
Executive Officer, Royal Wolf
|
Lawrence
Glascott
|
|
|
73
|
|
|
Chairman
of the Board of Directors
|
David
M. Connell
|
|
|
63
|
|
|
Director
|
Manuel
Marrero
|
|
|
50
|
|
|
Director
|
James
B. Roszak
|
|
|
66
|
|
|
Director
|
·
|
Ability
to attend regular and special board and committee meetings and
willingness
to perform the duties of a director
|
·
|
Fine
moral character, good personal and business
reputation
|
·
|
Industry
knowledge, contacts and network of potential clients in industries
served
by the Company
|
·
|
Ability
to be responsible, fair-minded, reliable, ethical and possess high
integrity
|
·
|
Prior
experience on boards of directors
|
·
|
Senior-level
management experience
|
·
|
Possession
of specific skills in auditing, accounting, personnel, finance,
etc.
|
Director
Compensation
|
|||||||
Name
|
Fees
Earned
or
Paid
in
Cash
|
Total
($)
|
|||||
Lawrence
Glascott
|
$
|
4,500
|
$
|
4,500
|
|||
David
M. Connell
|
$
|
4,500
|
$
|
4,500
|
|||
|
|||||||
Manuel
Marrero
|
$
|
4,500
|
$
|
4,500
|
|||
|
|||||||
James
B. Roszak
|
$
|
4,500
|
$
|
4,500
|
|||
|
|||||||
Ronald
F. Valenta
|
$
|
—
|
$
|
—
|
Annual
Retainer—Chairman of the Board
|
$
|
40,000
|
||
Annual
Retainer—Other Directors
|
$
|
30,000
|
||
Additional
Annual Retainer - Audit Committee Chair
|
$
|
10,000
|
||
Additional
Annual Retainer - Compensation Committee Chair
|
$
|
7,500
|
||
Additional
Annual Retainer - Nominating Committee Chair
|
$
|
3,000
|
||
Board
Meeting Attendance Fee—Chairman of the Board
|
$
|
2,000
|
||
Board
Meeting Attendance Fee—Other Directors
|
$
|
1,500
|
||
Committee
Meeting Attendance Fee
|
$
|
750
|
||
Telephonic
Meeting Attendance Fee
|
$
|
500
|
|
· |
Our
chief executive officer and chief operating officer are not required
to
commit their full time to our affairs and, accordingly, they may
have
conflicts of interest in allocating their time among various business
activities.
|
|
|
|
|
· |
In
the course of their other business activities, our officers and directors
may become aware of investment and business opportunities that may
be
appropriate for presentation to our company and the other entities
with
which they are affiliated. Our management may have conflicts of interest
in determining to which entity a particular business opportunity
should be
presented.
|
|
|
|
|
· |
Our
officers and directors may in the future become affiliated with entities,
including other blank check companies, engaged in business activities
similar to those in which our company intends to
engage.
|
|
· |
Ronald
F. Valenta, our Chief Executive Officer, is a member of the Board
of
Directors of Mobile Services Group, Inc., a portable storage company
that
he founded in 1988, and Chairman of the Board of Directors of Mobile
Office Acquisition Corporation, the parent company of Pac-Van, Inc.,
a
U.S. office modular and portable storage
company.
|
|
·
|
the
corporation could financially undertake the
opportunity;
|
|
|
|
|
·
|
the
opportunity is within the corporation’s line of
business; and
|
|
|
|
|
·
|
it
would not be fair to the corporation and its stockholders for the
opportunity not to be brought to the attention of the
corporation.
|
Name and Principal Position |
Year
|
|
|
Salary
|
|
|
Bonus
|
|
|
Option
Awards
(2)
|
|
|
All
Other Compensation (3)
|
|
|
Total
|
|||
Ronald
F. Valenta
Chief
Executive Officer
|
2007
|
(1)
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||||
|
2006
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
|
|||||||||||||||||||
Charles
E. Barrantes
Chief
Financial Officer and Executive Vice President
|
2007
|
(1)
|
$
|
100,000
|
$
|
—
|
$
|
68,800
|
$
|
3,512
|
$
|
172,312
|
|||||||
|
2006
|
62,121
|
(4)
|
21,742
|
(4)
|
42,000
|
3,361
|
129,224
|
(1) |
For
the six months ended June 30,
2007
|
(2) |
The
amounts shown are the amounts of compensation expense recognized
by us
relating to the grants of stock options in fiscal 2006, as described
in
Financial Accounting Standards No. 123R. For a discussion of
valuation
assumptions used in the calculation of these amounts, see Note
2, “Summary
of Significant Accounting Policies,” and Note 8, “2006 Stock Option Plan,”
of the Notes to Consolidated Financial Statements included elsewhere
in
this Transitional Report on Form
10-K.
|
(3) |
Reimbursement
of medical insurance
premiums.
|
(4) |
Mr.
Barrantes received a bonus for services in 2006, which was paid
in
September 2007. This amount equaled 35% of the salary paid to him
for 2006, which was equal to his target bonus under his employment
agreement.
|
Name |
Number
of Securities Underlying Unexercised Options
(#)
Exercisable
|
Number
of Securities Underlying Unexercised Options
(#)(1)
Unexercisable
|
Equity
Incentive Plan Awards: Number of Securities Underlying Unexercised
Unearned Options
(#)
|
Exercise
Price ($/Sh)
|
Expiration
Date
|
|||||||||||
Ronald
F. Valenta
|
—
|
—
|
—
|
—
|
—
|
|||||||||||
|
||||||||||||||||
John
O. Johnson
|
—
|
—
|
—
|
—
|
—
|
|||||||||||
Charles
E. Barrantes
|
—
|
225,000
|
—
|
$
|
7.30
|
9/11/16
|
|
(1)
|
These
options vest in five equal annual installments on September 11 of
each of
2007, 2008, 2009, 2010 and 2011, subject to continued service with
us, and
have a ten-year term.
|
Beneficial
Ownership
|
|||||||
Name
|
Number
of
Shares
(1)
|
Percent
of
Class (1)
|
|||||
Ronald
F. Valenta(2)(3)
|
2,605,466
|
24.1
|
%
|
||||
|
|||||||
John
O. Johnson(2)(4)
|
665,617
|
6.7
|
%
|
||||
|
|||||||
James
B. Roszak(2)
|
22,500
|
(*
|
)
|
||||
|
|||||||
Lawrence
Glascott(2)
|
22,500
|
(*
|
)
|
||||
|
|||||||
Manuel
Marrero(2)
|
22,500
|
(*
|
)
|
||||
|
|||||||
David
M. Connell(2)
|
22,500
|
(*
|
)
|
||||
|
|||||||
Charles
E. Barrantes(2)(5)
|
45,000
|
(*
|
)
|
||||
|
|||||||
Christopher
Wilson(2)
|
1,000 |
(*
|
)
|
||||
|
|||||||
Robert
Allan(6)
|
800
|
(*
|
)
|
||||
|
|||||||
Gilder,
Gagnon, Howe & Co. LLC(7)
|
1,788,722
|
18.6
|
%
|
||||
|
|||||||
Olowalu
Holdings, LLC(8)
|
642,000
|
6.7
|
%
|
||||
2863
S. Western Avenue
Palos
Verdes, California 90275
|
|||||||
|
|||||||
Ronald
L. Havner, Jr.(9)
LeeAnn
R. Havner
The
Havner Family Trust
|
671,500
|
6.8
|
%
|
||||
c/o
Public Storage, Inc.
701
Western Avenue
Glendale,
California 91201
|
|||||||
|
|||||||
Jonathan
Gallen(10)
|
1,905,000
|
6.4
|
%
|
||||
299
Park Avenue, 17th
Floor
New
York, New York 10171
|
|||||||
|
|||||||
Neil
Gagnon(11)
|
1,800,303
|
17.9
|
%
|
||||
1370
Avenue of the Americas, Suite 2400
New
York, New York 10019
|
|||||||
|
|||||||
Jack
Silver(12)
|
1,899,410
|
16.5
|
%
|
||||
SIAR
Capital LLC
660
Madison Avenue
New
York, New York 10021
|
|||||||
Brencourt
Advisors, LLC(13)
|
695,200
|
7.2
|
%
|
||||
600
Lexington Avenue
8th
Floor
New
York, NY 10022
|
|||||||
|
|||||||
All
executive officers and directors as a group (14) persons_nine
persons)(11)
|
3,406,883
|
30.6
|
%
|
(1)
|
Based
on 9,690,099 shares of common stock outstanding. In accordance with
the
rules of the Securities and Exchange Commission, person is deemed
to be
the beneficial owner of shares that the person may acquire within
the
following 60 days (such as upon exercise of options or warrants or
conversion of convertible securities). These shares are deemed to
be
outstanding for purposes of computing the percentage ownership of
the
person beneficially owning such shares but not for purposes of computing
the percentage of any other holder.
|
(2)
|
Business
address is c/o General Finance Corporation, 39 East Union Street,
Pasadena, California 91103.
|
(3)
|
Includes:
(i) 13,500 shares owned by Mr. Valenta’s wife and minor children, as to
which Mr. Valenta’s shares voting and investment power with his wife;
and (ii) 1,181,966 shares that may be acquired upon exercise of warrants.
The shares shown exclude the shares referred to in note (8),
below.
|
(4)
|
Includes
309,367 shares that may be acquired upon exercise of
warrants.
|
(5)
|
Represents
shares that may be acquired upon exercise of options.
|
(6)
|
Business
address is Suite 201,
Level 2, 22-28 Edgeworth David Avenue, Hornsby, New South Wales,
Australia 2077
|
(7)
|
Information
is based upon a Schedule 13G filed on September 30, 2007. Gilder,
Gagnon, Howe & Co. LLC is a New York limited liability and broker or
dealer registered under the Securities Exchange Act of 1934. The
shares
shown include 55,454 shares as to which Gilder, Gagnon, Howe & Co. LLC
has sole voting power and 1,788.722 shares as to which it shares
voting
and investment power. Of these 1,788.722 shares, 1,582,235 shares
are held
in customer accounts under which partners or employees of Gilder,
Gagnon,
Howe & Co. LLC have discretionary authority to dispose or direct the
disposition of the shares, 151,083 shares are held in accounts of
its
partners and 55,454 shares are held in its profit-sharing
plan.
|
(8)
|
Information
is based upon a Schedule l3G filed on February 27, 2007. Olawalu
Holdings, LLC (“Olawalu”), is a Hawaiian limited liability company, of
which Rick Pielago is the manager. Olawalu shares voting and investment
power as to all of the shares shown with Lighthouse Capital Insurance
Company, a Cayman Islands exempted limited company, and the Ronald
Valenta
Irrevocable Life Insurance Trust No. 1, a California trust, of which
Mr. Pielago is trustee. The Ronald Valenta Irrevocable Life Insurance
Trust No. 1 is an irrevocable family trust established by Ronald F.
Valenta in December 1999 for the benefit of his wife at the time, any
future wife, and their descendants. Mr. Valenta, himself, is not a
beneficiary of the Trust, and neither he nor his wife or their descendants
has voting or investment power, or any other legal authority, with
respect
to the shares shown. Mr. Valenta disclaims beneficial ownership of
our shares held by the Trust. Mr. Pielago may be deemed to be the
control person of Olawalu and the Ronald Valenta Irrevocable Life
Insurance Trust No. 1.
|
(9)
|
Information
is based upon a Schedule 13D filed on February 9, 2007. The
shares shown include 7,000 shares as to which Ronald L. Havner has
sole
voting power and 3,000 shares as to which his wife, LeeAnn R. Havner,
has
sole voting power. Mr. and Mrs. Havner are Co-Trustees of The Havner
Family Trust. The Trust owns 434,251 shares and warrants to purchase
227,250 shares. As Co-Trustees of the Trust, Mr. and Mrs. Havner may
he deemed to beneficially own all of the shares held by the Trust.
|
(10)
|
Information
is based upon a Schedule 13G filed on September 14, 2007 and
upon subsequent filings on Forms 3 and 4. The shares shown are held
by
Ahab Partners, L.P., Ahab International, Ltd., Queequeg Partners,
L.P.,
Queequeg, Ltd. and one or more other private funds managed by
Mr. Gallen. The shares shown include 655,000 shares that may be
acquired upon exercise of warrants.
|
(11)
|
Information
is based upon a Schedule 13G filed on September 27, 2007. The shares
shown include: (i) 244,008
shares
beneficially owned by Mr. Gagnon; (ii) 39,520
shares
beneficially owned by Mr. Gagnon over which he has sole voting power
and shared dispositive power; (iii) 162,443
shares beneficially owned by Lois Gagnon, Mr. Gagnon’s wife, over
which he has shared voting power and shared dispositive power;
(iv) 3,510
shares
beneficially owned by Mr. Gagnon and Mrs. Gagnon as joint
tenants with rights of survivorship, over which he has shared voting
power
and shared dispositive power; (v) 38,888
shares
held by the Lois E. and Neil E. Gagnon Foundation, of which
Mr. Gagnon is a trustee and over which he has shared voting power and
shared dispositive power; (vi) 60,163
shares
held by the Gagnon Family Limited Partnership, of which Mr. Gagnon is
a partner and over which lie has shared voting power and shared
dispositive power; (vii) 51,180
shares
held by the Gagnon Grandchildren Trust over which Mr. Gagnon has
shared dispositive power but no voting power; (viii) 530,549
shares
held by four hedge funds, of which Mr. Gagnon is either the principal
executive officer of the manager or the managing member of a member
of the
general partner or the managing member: (ix) 1,605 shares held by the
Gagnon Securities LLC Profit Sharing Plan and Trust, of which
Mr. Gagnon is a trustee; (x) 4,175
shares
held by the Gagnon Securities LLC Profit Sharing Plan and Trust;
and
(xi) 674,262
shares
held for certain customers of Gagnon Securities LLC, of which
Mr. Gagnon is the managing member and the principal owner and over
which he has shared dispositive power but no voting power. The shares
shown include 465,279 shares that may be acquired upon exercise of
warrants.
|
(12)
|
Information
is based upon a schedule 13G filed September 18, 2007. The shares
shown include: (i) 342,500 shares that may be acquired upon exercise
of warrants held by Sherleigh Associates Inc. Defined Benefit Pension
Plan, a trust of which Mr. Silver is the trustee; (ii) 1,590,110
shares that may be acquired upon exercise of warrants held by Sherleigh
Associates Inc. Profit Sharing Plan, a trust of which Mr. Silver is
the trustee; and (iii) 100,000 shares held by Sherleigh Associates
Inc. Defined Benefit Pension Plan, a trust of which Mr. Silver is a
trustee.
|
(13)
|
Information
is based upon a Schedule 13G filed on October 23, 2007 as an
Investment Advisor with the Sole
dispositive and power to vote or to direct the vote of 695,200
shares.
|
|
·
|
with
the prior consent of the representative;
|
|
|
|
|
·
|
in
whole and not in part;
|
|
|
|
|
·
|
at
a price of $.01 per warrant;
|
|
|
|
|
·
|
upon
not less than 30 days’ prior written notice of redemption to each
warrant holder; and
|
|
|
|
|
·
|
only
if the reported last sale price of the common stock equals or exceeds
$11.50 per share for any 20 trading days within a
30 trading day period ending on the third business day prior to the
notice of redemption to warrant
holders.
|
|
Rule 144
|
|
·
|
1%
of the number of shares of common stock then
outstanding; and
|
|
|
|
|
· |
if
the common stock is listed on a national securities exchange or on
The
Nasdaq Stock Market, the average weekly trading volume of the common
stock
during the four calendar weeks preceding the filing of a notice on
Form 144 with respect to the
sale.
|
|
Rule 144(k)
|
|
SEC
Position on Rule 144
Sales
|
|
Registration
Rights
|
UNAUDITED
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:
|
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets as of June 30, 2007 (Predecessor and
Successor) and September 30, 2007 (Successor)
|
F-2
|
|
|
|
|
Condensed
Consolidated Statements of Operations for the quarter ended September
30,
2006 (Predecessor), the period from July 1, to September 13, 2007
(Predecessor) and the quarter ended September 30, 2007
(Successor)
|
F-3
|
|
|
|
|
Condensed
Consolidated Statement of Stockholders’ Equity for the quarter ended
September 30, 2007 (Successor)
|
F-4
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows for the quarter ended September
30,
2006 (Predecessor), the period from July 1, to September 13, 2007
(Predecessor) and the quarter ended September 30, 2007
(Successor)
|
F-5
|
|
|
|
|
Notes
to Condensed Consolidated Financial Statements
|
F-6
|
ANNUAL
CONSOLIDATED FINANCIAL STATEMENTS (Predecessor) :
|
|
|
|
|
|
|
Report
of Independent Registered Public Accounting Firm - Grobstein, Horwath
& Company LLP
|
F-16
|
|
|
|
|
Consolidated
Balance Sheets as of June 30, 2007 and 2006
|
F-17
|
|
|
|
|
Consolidated
Statements of Operations for the years ended June 30, 2007 and
2006, the
six months ended June 30, 2005 and the year ended December 31,
2004
|
F-18
|
|
|
|
|
Consolidated
Statement of Changes in Shareholders’ Equity for the years ended June 30,
2007 and 2006, the six months ended June 30, 2005 and the year
ended
December 31, 2004
|
F-19
|
|
|
|
|
Consolidated
Statements of Cash Flows for the years ended June 30, 2007 and
2006, the
six months ended June 30, 2005 and the year ended December 31,
2004
|
F-20
|
|
|
|
|
Notes
to the Consolidated Financial Statements
|
F-21
|
|
Predecessor
|
Successor
|
||||||||
|
June
30,
|
June
30,
|
September 30,
|
|||||||
|
2007
|
2007
|
2007
|
|||||||
|
|
(Unaudited)
|
||||||||
Assets
|
||||||||||
Cash
and cash equivalents, including $68,218 held in trust account at
June 30,
2007 (successor)
|
$
|
886
|
$
|
68,277
|
$
|
15,390
|
||||
Trade
and other receivables, net of allowance for doubtful accounts of
$237
and $133 at June 30, 2007 and September 30, 2007,
respectively
|
13,322
|
—
|
15,356
|
|||||||
Inventories
|
5,472
|
—
|
10,592
|
|||||||
Prepaid
expenses
|
—
|
111
|
79
|
|||||||
Total
current assets
|
19,680
|
68,388
|
41,417
|
|||||||
|
||||||||||
Lease
receivables
|
1,364
|
—
|
1,512
|
|||||||
Property,
plant and equipment, net
|
2,737
|
2
|
4,568
|
|||||||
Container
for lease fleet, net
|
40,928
|
—
|
56,899
|
|||||||
Intangible
assets, net
|
4,079
|
—
|
50,230
|
|||||||
Deferred
tax assets
|
—
|
132
|
—
|
|||||||
Other
assets (including $1,548 of deferred acquisition costs at June
30,
2007)
|
—
|
2,556
|
30
|
|||||||
Total
non-current assets
|
49,108
|
2,690
|
113,239
|
|||||||
Total
assets
|
$
|
68,788
|
$
|
71,078
|
$
|
154,656
|
||||
|
||||||||||
Current
liabilities
|
||||||||||
Trade
payables and accrued liabilities
|
$
|
8,641
|
$
|
893
|
$
|
20,967
|
||||
Current
portion of long-term debt and obligations, including borrowings
from
related party of $2,350 at June 30, 2007 (successor)
|
10,359
|
2,350
|
9,760
|
|||||||
Income
tax payable
|
245
|
177
|
504
|
|||||||
Employee
benefits
|
1,614
|
12
|
1,069
|
|||||||
Deferred
underwriting fees
|
—
|
1,380
|
—
|
|||||||
Total
current liabilities
|
20,859
|
4,812
|
32,300
|
|||||||
|
||||||||||
Non-current
liabilities
|
||||||||||
Long-term
debt and obligations, net of current portion
|
33,811
|
—
|
48,908
|
|||||||
Deferred
tax liabilities
|
881
|
—
|
—
|
|||||||
Employee
benefits and other non-current liabilities
|
197
|
—
|
1,595
|
|||||||
Common
stock, subject to possible conversion
|
—
|
13,339
|
—
|
|||||||
Total
non-current liabilities
|
34,889
|
13,339
|
50,503
|
|||||||
|
||||||||||
Commitments
and contingencies
|
—
|
—
|
—
|
|||||||
|
||||||||||
Minority
Interest
|
—
|
—
|
7,474
|
|||||||
|
||||||||||
Stockholders’
equity
|
||||||||||
Preferred
stock, $.0001 par value: 1,000,000 shares authorized; no shares
outstanding (successor)
|
—
|
—
|
—
|
|||||||
Common
stock, $.0001 par value: 100,000,000 shares authorized; 10,500,000
shares
and 9,690,099 shares outstanding at June 30, 2007 and September
30, 2007,
respectively (successor)
|
—
|
1
|
1
|
|||||||
Class
D and common stock (predecessor)
|
12,187
|
—
|
—
|
|||||||
Additional
paid-in capital
|
—
|
51,777
|
59,950
|
|||||||
Accumulated
other comprehensive income
|
862
|
—
|
1,757
|
|||||||
Retained
earnings (accumulated deficit)
|
(9
|
)
|
1,149
|
2,671
|
||||||
|
13,040
|
52,927
|
64,379
|
|||||||
Total
liabilities and stockholders’ equity
|
$
|
68,788
|
$
|
71,078
|
$
|
154,656
|
|
Predecessor
|
|
Successor
(Note
1)
|
|
||||||
|
|
Quarter
Ended
September 30,
2006
|
|
Period
from
July
1, to
September 13,
2007
|
|
Quarter
Ended
September 30,
2007
|
||||
|
|
|
||||||||
Revenues
|
||||||||||
Sale
of containers
|
$
|
10,626
|
$
|
10,944
|
$
|
3,278
|
||||
Leasing
of containers
|
4,876
|
4,915
|
1,121
|
|||||||
|
15,502
|
15,859
|
4,399
|
|||||||
|
||||||||||
Costs
and expenses
|
||||||||||
Cost
of sales
|
9,776
|
9,466
|
2,947
|
|||||||
Leasing,
selling and general expenses
|
4,050
|
4,210
|
1,225
|
|||||||
Depreciation
and amortization
|
706
|
653
|
338
|
|||||||
|
||||||||||
Operating
income (loss)
|
970
|
1,530
|
(111
|
)
|
||||||
|
||||||||||
Interest income
|
2
|
14
|
974
|
|||||||
Interest expense
|
(771
|
)
|
(947
|
)
|
(374
|
)
|
||||
Foreign
currency exchange gain (loss)
|
(2
|
)
|
(129
|
)
|
2,045
|
|||||
|
(771
|
)
|
(1,062
|
)
|
2,645
|
|||||
|
||||||||||
Income
before provision for income taxes and minority
interest
|
199
|
468
|
2,534
|
|||||||
|
||||||||||
Provision
for income taxes
|
149
|
180
|
855
|
|||||||
Minority
interest
|
—
|
—
|
157
|
|||||||
Net
income
|
$
|
50
|
$
|
288
|
$
|
1,522
|
Net
income per share:
|
||||
Basic
|
$
|
0.15
|
||
Diluted
|
0.12
|
|||
|
||||
Weighted
average shares outstanding
|
||||
Basic
|
10,350,344
|
|||
Diluted
|
12,679,576
|
|
|
|
Accumulated
|
|
|
||||||||||||||
|
Common
Stock
|
Additional
Paid-In
|
Other
Comprehensive
|
Retained
|
Total
Stockholders’
|
||||||||||||||
|
Shares
|
Amount
|
Capital
|
Income
(Loss)
|
Earnings
|
Equity
|
|||||||||||||
|
|
|
|
|
|
|
|||||||||||||
Balance
at June 30, 2007
|
10,500,000
|
$
|
1
|
$
|
51,777
|
$
|
—
|
$
|
1,149
|
$
|
52,927
|
||||||||
|
|||||||||||||||||||
Reversal
of common stock subject to possible conversion
|
—
|
—
|
12,858
|
—
|
—
|
12,858
|
|||||||||||||
|
|||||||||||||||||||
Conversion
of common stock into cash
|
(809,901
|
)
|
—
|
(6,042
|
)
|
—
|
—
|
(6,042
|
)
|
||||||||||
|
|||||||||||||||||||
Issuance
of warrants
|
—
|
—
|
1,309
|
—
|
—
|
1,309
|
|||||||||||||
|
|||||||||||||||||||
Share-based
compensation
|
—
|
—
|
34
|
—
|
—
|
34
|
|||||||||||||
|
|||||||||||||||||||
Contributed
services
|
—
|
—
|
14
|
—
|
—
|
14
|
|||||||||||||
|
|||||||||||||||||||
Net
income
|
—
|
—
|
—
|
—
|
1,522
|
1,522
|
|||||||||||||
|
|||||||||||||||||||
Cumulative
translation adjustment
|
—
|
—
|
—
|
1,757
|
—
|
1,757
|
|||||||||||||
|
|||||||||||||||||||
Balance
at September 30, 2007
|
9,690,099
|
$
|
1
|
$
|
59,950
|
$
|
1,757
|
$
|
2,671
|
$
|
64,379
|
|
Predecessor
|
Successor
(Note
1)
|
||||||||
|
Quarter
|
Period
from
|
Quarter
|
|||||||
|
Ended
|
July
1, to
|
Ended
|
|||||||
|
September 30,
|
September 13,
|
September 30,
|
|||||||
|
2006
|
2007
|
2007
|
|||||||
Net
cash provided (used) by operating activities
|
$
|
2,638
|
$
|
4,294
|
$
|
(1,679
|
)
|
|||
|
||||||||||
Cash
flows from investing activities:
|
||||||||||
Proceeds
from sale of property, plant and equipment
|
—
|
28
|
—
|
|||||||
Acquisitions, net
of cash acquired
|
—
|
—
|
(52,003
|
)
|
||||||
Purchases of
property, plant and equipment
|
(109
|
)
|
—
|
(3
|
)
|
|||||
Purchases
of container lease fleet
|
(6,182
|
)
|
(3,106
|
)
|
(2,372
|
)
|
||||
Purchases
of intangible assets
|
(357
|
)
|
—
|
—
|
||||||
Payment
of deferred purchase consideration
|
(151
|
)
|
—
|
—
|
||||||
Net
cash used by investing activities
|
(6,799
|
)
|
(3,078
|
)
|
(54,378
|
)
|
||||
|
||||||||||
Cash
flows from financing activities:
|
||||||||||
Capital leasing activities
|
(216
|
)
|
(7,921
|
)
|
(201
|
)
|
||||
Proceeds
from long-term borrowings
|
3,840
|
1,124
|
4,667
|
|||||||
Proceeds
from issuances of capital
|
—
|
4,990
|
—
|
|||||||
Payments
to converting stockholders
|
—
|
—
|
(6,426
|
)
|
||||||
Minority
interest
|
—
|
—
|
7,317
|
|||||||
Repayment
of borrowings from related party
|
—
|
—
|
(2,350
|
)
|
||||||
Net
cash provided (used) by financing activities
|
3,624
|
(1,807
|
)
|
3,007
|
||||||
|
||||||||||
Net decrease
in cash
|
(537
|
)
|
(591
|
)
|
(53,050
|
)
|
||||
|
||||||||||
Cash
at beginning of period
|
567
|
886
|
68,277
|
|||||||
|
||||||||||
Translation
adjustment
|
22
|
(5
|
)
|
163
|
||||||
|
||||||||||
Cash
at end of period
|
$
|
52
|
$
|
290
|
$
|
15,390
|
|
September
13, 2007
|
||||||
Fair
value of the net tangible assets acquired and liabilities
assumed:
|
|||||||
Cash
and cash equivalents
|
$
|
290
|
|
||||
Trade
and other receivables
|
12,009
|
||||||
Inventories
|
9,224
|
||||||
Lease
receivables
|
1,452
|
||||||
Property,
plant and equipment
|
4,345
|
||||||
Container
for lease fleet
|
51,362
|
||||||
Other
assets
|
586
|
||||||
Trade
and other payables
|
(14,991
|
)
|
|||||
Income
tax payable
|
(271
|
)
|
|||||
Other
current liabilities
|
(974
|
)
|
|||||
Long-term
debt and obligations
|
(37,868
|
)
|
|||||
Total
net tangible assets acquired and liabilities assumed
|
$
|
25,164
|
|||||
|
|||||||
Fair
value of intangible assets acquired:
|
|||||||
Customer
backlog
|
21,722
|
||||||
Non-compete
agreement
|
3,139
|
||||||
Software
and other (including deferred financing costs of $926)
|
1,172
|
||||||
Goodwill
|
18,244
|
||||||
Total
intangible assets acquired
|
44,277
|
||||||
Total
purchase price
|
$
|
69,441
|
|
Three
months ended
September
30,
|
||||||
|
2006
|
2007
|
|||||
Revenues
|
$
|
15,502
|
$
|
20,258
|
|||
Net
income (loss)
|
$
|
(322
|
)
|
$
|
869
|
||
Pro
forma net income (loss) per share -
|
|||||||
Basic
|
$
|
(0.03
|
)
|
$
|
0.09
|
||
Diluted
|
(0.03
|
)
|
0.07
|
|
Predecessor
June
30,
2007
|
Successor
September 30,
2007
|
|||||
|
|||||||
Finished
goods
|
$
|
4,113
|
$
|
8,727
|
|||
Work
in progress
|
1,359
|
1,865
|
|||||
|
$
|
5,472
|
$
|
10,592
|
|
Quarter Ended
September 30, 2007
|
|||
Basic
|
10,350,344
|
|||
Assumed
exercise of warrants
|
2,309,545
|
|||
Assumed exercise
of stock options
|
19,687
|
|||
Diluted
|
12,679,576
|
|
Minimum
lease payments
|
Interest
|
Principal
|
|||||||
Less
than one year
|
$
|
605
|
$
|
47
|
$
|
558
|
||||
Between
one and five years
|
184
|
23
|
161
|
|||||||
More
than five years
|
—
|
—
|
—
|
|||||||
|
$
|
789
|
$
|
70
|
$
|
719
|
Less
than one year
|
$
|
3,085
|
||
One-two
years
|
1,222
|
|||
Two-three
years
|
1,001
|
|||
Three-four
years
|
531
|
|||
Four-five
years
|
234
|
|||
Thereafter
|
411
|
|||
|
$
|
6,484
|
|
Predecessor
|
Successor
|
||||||||
|
Quarter
|
Period
from
|
Quarter
|
|||||||
|
Ended
|
July
1, to
|
Ended
|
|||||||
|
September 30,
|
September 13,
|
September 30,
|
|||||||
|
2006
|
2007
|
2007
|
|||||||
Cash
flows from operating activities
|
|
|
|
|||||||
Net
income
|
$
|
50
|
$
|
288
|
$
|
1,522
|
||||
Loss
on sales and disposals of fixed assets
|
8
|
11
|
—
|
|||||||
Foreign
exchange (gain) loss
|
1
|
58
|
(2,620
|
)
|
||||||
Unrealized
loss on forward exchange contracts
|
2
|
72
|
576
|
|||||||
Unrealized
loss on interest rate swaps
|
35
|
90
|
16
|
|||||||
Depreciation
and amortization
|
706
|
653
|
338
|
|||||||
Amortization
of deferred financing costs
|
—
|
—
|
24
|
|||||||
Accretion
of interest on subordinated debt
|
325
|
32
|
10
|
|||||||
Share-based
compensation expense
|
—
|
—
|
34
|
|||||||
Contributed
services
|
—
|
—
|
14
|
|||||||
Interest
deferred for common stock subject to possible conversion, net of income
tax effect
|
—
|
—
|
(226
|
)
|
||||||
Deferred
income taxes
|
149
|
180
|
574
|
|||||||
Minority
interest
|
—
|
—
|
157
|
|||||||
Changes
in operating assets and liabilities:
|
||||||||||
Trade
and other receivables, net
|
(1,043
|
)
|
1,090
|
(2,896
|
)
|
|||||
Inventories
|
(56
|
)
|
(3,822
|
)
|
(818
|
)
|
||||
Other
|
—
|
—
|
71
|
|||||||
Accounts
payable and accrued liabilities
|
2,461
|
5,642
|
1,581
|
|||||||
Income
taxes payable
|
—
|
—
|
(36
|
)
|
||||||
Net
cash provided (used) by operating activities
|
$
|
2,638
|
$
|
4,294
|
$
|
(1,679
|
)
|
|
June
30,
|
||||||
|
2007
|
2006
|
|||||
|
(-000-)
|
||||||
Assets
|
|
|
|||||
Cash
and cash equivalents
|
$
|
886
|
$
|
567
|
|||
Trade
and other receivables, net of allowance for doubtful accounts
of
$237
and $129 at June 30, 2007 and 2006, respectively
|
13,322
|
7,451
|
|||||
Inventories
|
5,472
|
5,460
|
|||||
Total
current assets
|
19,680
|
13,478
|
|||||
|
|||||||
Lease
receivables
|
1,364
|
566
|
|||||
Property,
plant and equipment, net
|
2,737
|
2,614
|
|||||
Container
for lease fleet, net
|
40,928
|
27,773
|
|||||
Intangible
assets, net
|
4,079
|
3,472
|
|||||
Total
non-current assets
|
49,108
|
34,425
|
|||||
|
|||||||
Total
assets
|
$
|
68,788
|
$
|
47,903
|
|||
|
|||||||
Liabilities
|
|||||||
Trade
payables and accrued liabilities
|
$
|
8,641
|
$
|
9,133
|
|||
Current
portion of long-term debt and obligations
|
10,359
|
6,526
|
|||||
Income
tax payable
|
245
|
—
|
|||||
Employee
benefits
|
1,614
|
921
|
|||||
Other
current liabilities
|
—
|
219
|
|||||
Total
current liabilities
|
20,859
|
16,580
|
|||||
|
|||||||
Non-current
liabilities
|
|||||||
Long-term
debt and obligations, net of current portion
|
33,811
|
27,155
|
|||||
Deferred
tax liabilities
|
881
|
415
|
|||||
Employee
benefits
|
171
|
529
|
|||||
Other
non-current liabilities
|
26
|
206
|
|||||
Total
non-current liabilities
|
34,889
|
28,305
|
|||||
|
|||||||
Commitments
and contingencies (Note 16)
|
—
|
—
|
|||||
|
|||||||
Shareholders’
equity
|
|||||||
Issued
capital (Note 14)
|
12,187
|
3,441
|
|||||
Accumulated
other comprehensive income (loss)
|
862
|
(102
|
)
|
||||
Retained
earnings (accumulated deficit)
|
(9
|
)
|
(321
|
)
|
|||
|
13,040
|
3,018
|
|||||
Total
liabilities and shareholders’ equity
|
$
|
68,788
|
$
|
47,903
|
|
|
Six Months
|
|
||||||||||
|
Year Ended
|
Ended
|
Year Ended
|
||||||||||
|
June
30,
|
December 31,
|
|||||||||||
|
2007
|
2006
|
2005
|
2004
|
|||||||||
|
(-000-)
|
||||||||||||
Revenues
|
|
|
|
|
|||||||||
Sale
of containers
|
$
|
52,929
|
$
|
34,473
|
$
|
13,563
|
$
|
26,141
|
|||||
Leasing
of containers
|
21,483
|
15,921
|
7,224
|
12,351
|
|||||||||
74,412
|
50,394
|
20,787
|
38,492
|
||||||||||
|
|||||||||||||
Costs
and expenses
|
|||||||||||||
Cost
of sales
|
46,402
|
32,661
|
12,843
|
24,079
|
|||||||||
Leasing,
selling and general expenses
|
20,761
|
12,653
|
5,904
|
8,983
|
|||||||||
Depreciation
and amortization
|
2,577
|
2,668
|
1,480
|
2,504
|
|||||||||
|
|||||||||||||
Operating
income
|
4,672
|
2,412
|
560
|
2,926
|
|||||||||
|
|||||||||||||
Interest
income
|
413
|
375
|
80
|
87
|
|||||||||
Interest
expense
|
(4,378
|
)
|
(3,017
|
)
|
(1,127
|
)
|
(2,110
|
)
|
|||||
Foreign
currency exchange gain (loss)
|
95
|
16
|
252
|
(287
|
)
|
||||||||
Other,
net
|
—
|
—
|
133
|
68
|
|||||||||
(3,870
|
)
|
(2,626
|
)
|
(662
|
)
|
(2,242
|
)
|
||||||
|
|||||||||||||
Income
(loss) before provision for income taxes
|
802
|
(214
|
)
|
(102
|
)
|
684
|
|||||||
|
|||||||||||||
Provision
for income taxes
|
490
|
214
|
75
|
400
|
|||||||||
Net
income (loss)
|
$
|
312
|
$
|
(428
|
)
|
$
|
(177
|
)
|
$
|
284
|
|
Share
capital
(Note
14)
|
Retained
earnings/
(Accumulated
losses)
|
Accumulated
other
comprehensive
income
(loss)
|
Total
equity
|
|||||||||
|
(-000-)
|
||||||||||||
Balance
at January 1, 2004
|
$
|
2,762
|
$
|
—
|
$
|
—
|
$
|
2,762
|
|||||
Net
income
|
—
|
284
|
—
|
284
|
|||||||||
Cumulative
translation adjustment
|
—
|
—
|
119
|
119
|
|||||||||
Total
comprehensive income (loss)
|
—
|
284
|
119
|
403
|
|||||||||
Balance
at December 31, 2004
|
2,762
|
284
|
119
|
3,165
|
|||||||||
|
|||||||||||||
Issuance
of capital
|
679
|
—
|
—
|
679
|
|||||||||
Net
loss
|
—
|
(177
|
)
|
—
|
(177
|
)
|
|||||||
Cumulative
translation adjustment
|
—
|
—
|
(81
|
)
|
(81
|
)
|
|||||||
Total
comprehensive income (loss)
|
—
|
(177
|
)
|
(81
|
)
|
(258
|
)
|
||||||
Balance
at June 30, 2005
|
3,441
|
107
|
38
|
3,586
|
|||||||||
|
|||||||||||||
Net
loss
|
—
|
(428
|
)
|
—
|
(428
|
)
|
|||||||
Cumulative
translation adjustment
|
—
|
—
|
(140
|
)
|
(140
|
)
|
|||||||
Total
comprehensive income (loss)
|
—
|
(428
|
)
|
(140
|
)
|
(568
|
)
|
||||||
Balance
at June 30, 2006
|
3,441
|
(321
|
)
|
(102
|
)
|
3,018
|
|||||||
|
|||||||||||||
Issuance
of capital
|
8,746
|
—
|
—
|
8,746
|
|||||||||
Net
income
|
—
|
312
|
—
|
312
|
|||||||||
Cumulative
translation adjustment
|
—
|
—
|
964
|
964
|
|||||||||
Total
comprehensive income (loss)
|
—
|
312
|
964
|
1,276
|
|||||||||
Balance
at June 30, 2007
|
$
|
12,187
|
$
|
(9
|
)
|
$
|
862
|
$
|
13,040
|
|
Year Ended
|
Six Months
Ended
|
Year Ended
|
||||||||||
|
June 30,
|
December 31,
|
|||||||||||
|
2007
|
2006
|
2005
|
2004
|
|||||||||
|
(-000-)
|
||||||||||||
Cash
flows from operating activities (Note 18)
|
|
|
|
|
|||||||||
Cash
receipts from customers
|
$
|
75,502
|
$
|
53,376
|
$
|
22,616
|
$
|
41,518
|
|||||
Cash
paid to suppliers and employees
|
(62,796
|
)
|
(41,204
|
)
|
(19,597
|
)
|
(36,550
|
)
|
|||||
|
12,706
|
12,172
|
3,019
|
4,968
|
|||||||||
Interest
(paid)/received, net
|
(3,799
|
)
|
(2,118
|
)
|
(902
|
)
|
(1,182
|
)
|
|||||
Income
taxes received/(paid)
|
49
|
-
|
(587
|
)
|
576
|
||||||||
Net
cash from operating activities
|
8,956
|
10,054
|
1,530
|
4,362
|
|||||||||
|
|||||||||||||
Cash
flows from investing activities
|
|||||||||||||
Proceeds
from sale of property, plant and equipment
|
101
|
52
|
19
|
55
|
|||||||||
Acquisition
of subsidiary, net of cash acquired
|
(303
|
)
|
(4,855
|
)
|
—
|
—
|
|||||||
Acquisition
of property, plant and equipment
|
(845
|
)
|
(837
|
)
|
(1,498
|
)
|
(924
|
)
|
|||||
Acquisition
of container hire fleet
|
(20,350
|
)
|
(13,178
|
)
|
(5,975
|
)
|
(8,848
|
)
|
|||||
Acquisition
of intangible assets
|
(66
|
)
|
(144
|
)
|
(19
|
)
|
(52
|
)
|
|||||
Payment
of deferred purchase consideration
|
(451
|
)
|
-
|
(2,707
|
)
|
—
|
|||||||
Net
cash used by investing activities
|
(21,914
|
)
|
(18,962
|
)
|
(10,180
|
)
|
(9,769
|
)
|
|||||
|
|||||||||||||
Cash
flows from financing activities
|
|||||||||||||
Proceeds
from capital lease and other liabilities
|
434
|
—
|
—
|
—
|
|||||||||
Payment
of capital lease and other liabilities
|
(1,152
|
)
|
(565
|
)
|
(298
|
)
|
(1,408
|
)
|
|||||
Proceeds
from borrowings
|
16,050
|
20,088
|
10,045
|
14,901
|
|||||||||
Repayment
of borrowings
|
(10,689
|
)
|
(10,557
|
)
|
(1,241
|
)
|
(9,402
|
)
|
|||||
Proceeds
from issuance of capital
|
8,746
|
—
|
679
|
—
|
|||||||||
Net
cash from financing activities
|
13,389
|
8,966
|
9,185
|
4,091
|
|||||||||
|
|||||||||||||
Net
increase / (decrease) in cash and cash equivalents
|
431
|
58
|
535
|
(1,316
|
)
|
||||||||
Cash
and cash equivalents at beginning of period
|
567
|
530
|
2
|
1,340
|
|||||||||
Translation
adjustment
|
(112
|
)
|
(21
|
)
|
(7
|
)
|
(22
|
)
|
|||||
Cash
and cash equivalents at end of period
|
$
|
886
|
$
|
567
|
$
|
530
|
$
|
2
|
|
2007
|
|
2004
- 2006
|
||||
|
|
|
|||||
Plant
and equipment
|
3
- 10 years
|
3
- 10 years
|
|||||
Motor
vehicles
|
3
- 10 years
|
3
- 10 years
|
|||||
Furniture
and fittings
|
5
- 10 years
|
5
- 10 years
|
|
2007
|
|
2004
- 2006
|
||||
|
|
|
|||||
Containers
for lease
|
10-20
years (10-70% residual)
|
|
10-25
years (20% residual)
|
|
|||
Leased
containers (used)
|
10-20
years (10-70% residual)
|
|
10-25
years (20% residual)
|
|
|||
Leased
containers (new)
|
10-20
years (10-70% residual)
|
|
10-30
years (20-30% residual)
|
|
·
|
persuasive
evidence of an arrangement exists;
|
·
|
delivery
has occurred;
|
·
|
the
seller’s price to the customer is fixed or determinable;
and
|
·
|
collectability
is reasonable assured.
|
|
Year
Ended
|
|
Six
Months
Ended
|
|
Year
Ended
|
|
|||||||
|
|
June
30,
|
|
December
31,
|
|
||||||||
|
|
2007
|
|
2006
|
|
2005
|
|
2004
|
|||||
|
(-000-)
|
||||||||||||
Recognized
in the income statement
|
|||||||||||||
Current
tax (benefit) / expense
|
|||||||||||||
Current
year
|
$
|
13
|
$
|
—
|
$
|
(23
|
)
|
$
|
(3
|
)
|
|||
Adjustments
for prior years
|
(4
|
)
|
—
|
—
|
—
|
||||||||
|
9
|
—
|
(23
|
)
|
(3
|
)
|
|||||||
|
|||||||||||||
Deferred
tax expense
|
|||||||||||||
Origination
and reversal of temporary differences
|
481
|
214
|
98
|
403
|
|||||||||
|
481
|
214
|
98
|
403
|
|||||||||
|
|||||||||||||
Total
provision for income taxes
|
$
|
490
|
$
|
214
|
$
|
75
|
$
|
400
|
|
|
|
|
|
|
Six
Months
|
|
|
|
||||
|
|
Year
Ended
|
|
Ended
|
|
Year
Ended
|
|
||||||
|
|
June
30,
|
|
December
31,
|
|
||||||||
|
|
2007
|
|
2006
|
|
2005
|
|
2004
|
|
||||
|
(-000-)
|
||||||||||||
Reconciliation
between the Australian statutory provision for income taxes to
the
Company’s actual provision for income taxes
|
|||||||||||||
|
|||||||||||||
Profit
/ (loss) before tax
|
$
|
802
|
$
|
(214
|
)
|
$
|
(102
|
)
|
$
|
684
|
|||
|
|||||||||||||
Income
tax using the Australian corporation tax rate of 30%
|
241
|
(64
|
)
|
(31
|
)
|
205
|
|||||||
|
|||||||||||||
Increase
in income tax expense due to:
|
|||||||||||||
Goodwill
write off arising from benefit from deferred tax assets not recognized
at
date of previous business combinations
|
—
|
80
|
—
|
—
|
|||||||||
Non-deductible
expenses
|
253
|
198
|
106
|
195
|
|||||||||
Decrease
in income tax expense due to:
|
|||||||||||||
Under
/ (over) provided in prior years
|
(4
|
)
|
—
|
—
|
—
|
||||||||
|
|||||||||||||
Total
provision for income taxes
|
$
|
490
|
$
|
214
|
$
|
75
|
$
|
400
|
|
Assets
|
|
Liabilities
|
|
Net
|
|
|||||||||||||
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
2007
|
|
2006
|
|
||||||
|
|
(-000-)
|
|||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||
Property,
plant and equipment
|
$
|
—
|
$
|
—
|
$
|
(1,902
|
)
|
$
|
(1,338
|
)
|
$
|
(1,902
|
)
|
$
|
(1,338
|
)
|
|||
Long-term
debt and obligations
|
71
|
91
|
—
|
—
|
71
|
91
|
|||||||||||||
Employee
benefits
|
164
|
269
|
—
|
—
|
164
|
269
|
|||||||||||||
Other
items
|
786
|
114
|
—
|
(87
|
)
|
786
|
27
|
||||||||||||
Loss
carry-forwards
|
—
|
536
|
—
|
—
|
—
|
536
|
|||||||||||||
Tax
assets / (liabilities)
|
$
|
1,021
|
$
|
1,010
|
$
|
(1,902
|
)
|
$
|
(1,425
|
)
|
$
|
(881
|
)
|
$
|
(415
|
)
|
|
|
At
June 30,
|
|
||||
|
|
2007
|
|
2006
|
|
||
|
|
(-000-)
|
|||||
Current
|
|||||||
Trade
receivables
|
$
|
12,189
|
$
|
6,788
|
|||
Less: allowance
for doubtful accounts
|
(237
|
)
|
(129
|
)
|
|||
|
11,952
|
6,659
|
|||||
|
|||||||
Lease
receivables
|
479
|
245
|
|||||
Fair
value of derivatives
|
300
|
96
|
|||||
Other
receivables and prepayments
|
591
|
451
|
|||||
|
$
|
13,322
|
$
|
7,451
|
|
|
At
June 30,
|
|
||||
|
|
2007
|
|
2006
|
|
||
|
|
(-000-)
|
|||||
|
|
|
|||||
Finished
goods
|
$
|
4,113
|
$
|
5,081
|
|||
Work
in progress
|
1,359
|
379
|
|||||
|
$
|
5,472
|
$
|
5,460
|
|
Plant, plant and
equipment,
|
|
||
|
|
(-000-)
|
||
Cost
|
||||
Balance
at January 1, 2004
|
$
|
866
|
||
Acquisitions
|
924
|
|||
Disposals
|
(51
|
)
|
||
Translation
adjustment
|
83
|
|||
Balance
at December 31, 2004
|
1,822
|
|||
Acquisitions
|
1,498
|
|||
Disposals
|
(27
|
)
|
||
Translation
adjustment
|
(64
|
)
|
||
Balance
at June 30, 2005
|
3,229
|
|||
Acquisitions
|
837
|
|||
Acquisitions
through business combinations
|
230
|
|||
Disposals
|
(82
|
)
|
||
Translation
adjustment
|
(159
|
)
|
||
Balance
at June 30, 2006
|
4,055
|
|||
Acquisitions
|
845
|
|||
Disposals
|
(237
|
)
|
||
Translation
adjustment
|
707
|
|||
Balance
at 30 June 2007
|
$
|
5,370
|
||
Depreciation
and impairment losses
|
||||
Balance
at January 1, 2004
|
$
|
—
|
||
Depreciation
charge for the period
|
(411
|
)
|
||
Disposals
|
24
|
|||
Translation
adjustment
|
(22
|
)
|
||
Balance
at December 31, 2004
|
(409
|
)
|
||
Depreciation
charge for the period
|
(337
|
)
|
||
Disposals
|
22
|
|||
Translation
adjustment
|
14
|
|||
Balance
at June 30, 2005
|
(710
|
)
|
||
Depreciation
charge for the period
|
(830
|
)
|
||
Disposals
|
51
|
|||
Translation
adjustment
|
48
|
|||
Balance
at June 30, 2006
|
(1,441
|
)
|
||
Depreciation
charge for the period
|
(1,020
|
)
|
||
Disposals
|
133
|
|||
Translation
adjustment
|
(305
|
)
|
||
Balance
at June 30, 2007
|
$
|
(2,633
|
)
|
|
|
Container for Lease
Fleet
|
|
|
|
|
(-000-)
|
||
Cost
|
||||
Balance
at January 1, 2004
|
$
|
13,128
|
||
Acquisitions
|
8,848
|
|||
Transfers
to inventory
|
(4,016
|
)
|
||
Translation
adjustment
|
767
|
|||
Balance
at December 31, 2004
|
18,727
|
|||
Acquisitions
|
5,975
|
|||
Transfers
to inventory
|
(2,959
|
)
|
||
Translation
adjustment
|
(479
|
)
|
||
Balance
at June 30, 2005
|
21,264
|
|||
Acquisitions
|
13,178
|
|||
Acquisitions
through business combinations
|
5,107
|
|||
Transfers
to inventory
|
(8,478
|
)
|
||
Translation
adjustment
|
(1,123
|
)
|
||
Balance
at June 30, 2006
|
29,948
|
|||
Acquisitions
|
20,350
|
|||
Acquisitions
through business combinations
|
299
|
|||
Transfers
to inventory
|
(12,601
|
)
|
||
Translation
adjustment
|
5,513
|
|||
Balance
June 30, 2007
|
$
|
43,509
|
||
|
||||
Depreciation
and impairment losses
|
||||
Balance
at January 1, 2004
|
$
|
—
|
||
Depreciation
charge for the period
|
(1,775
|
)
|
||
Transfers
to inventory
|
626
|
|||
Translation
adjustment
|
(67
|
)
|
||
Balance
at December 31, 2004
|
(1,216
|
)
|
||
Depreciation
charge for the period
|
(984
|
)
|
||
Transfers
to inventory
|
545
|
|||
Translation
adjustment
|
35
|
|||
Balance
at June 30, 2005
|
(1,620
|
)
|
||
Depreciation
charge for the period
|
(1,475
|
)
|
||
Transfers
to inventory
|
837
|
|||
Translation
adjustment
|
83
|
|||
Balance
at June 30, 2006
|
(2,175
|
)
|
||
Depreciation
charge for the period
|
(1,514
|
)
|
||
Transfers
to inventory
|
1,467
|
|||
Translation
adjustment
|
(359
|
)
|
||
Balance
at June 30, 2007
|
$
|
(2,581
|
)
|
|
Software
|
|
Goodwill
|
|
Trademarks
|
|
Other
|
|
Total
|
|
||||||
|
|
(-000-)
|
||||||||||||||
Cost
|
||||||||||||||||
Balance
at January 1, 2004
|
$
|
710
|
$
|
437
|
$
|
300
|
$
|
—
|
$
|
1,447
|
||||||
Acquisitions
through business combinations
|
—
|
2,580
|
—
|
—
|
2,580
|
|||||||||||
Other
acquisitions
|
52
|
—
|
—
|
—
|
52
|
|||||||||||
Translation
adjustment
|
29
|
167
|
10
|
—
|
206
|
|||||||||||
Balance
at December 31, 2004
|
791
|
3,184
|
310
|
—
|
4,285
|
|||||||||||
Acquisitions
|
19
|
—
|
—
|
—
|
19
|
|||||||||||
Translation
adjustment
|
(18
|
)
|
(74
|
)
|
(7
|
)
|
—
|
(99
|
)
|
|||||||
Balance
at June 30, 2005
|
792
|
3,110
|
303
|
—
|
4,205
|
|||||||||||
Acquisitions
through business combinations
|
—
|
1,304
|
—
|
—
|
1,304
|
|||||||||||
Other
acquisitions
|
99
|
—
|
—
|
45
|
144
|
|||||||||||
Translation
adjustment
|
(35
|
)
|
(158
|
)
|
(12
|
)
|
(2
|
)
|
(207
|
)
|
||||||
Balance
at June 30, 2006
|
856
|
4,256
|
291
|
43
|
5,446
|
|||||||||||
Acquisitions
through business combinations
|
—
|
17
|
—
|
—
|
17
|
|||||||||||
Other
acquisitions
|
24
|
—
|
—
|
42
|
66
|
|||||||||||
Translation
adjustment
|
141
|
693
|
47
|
10
|
891
|
|||||||||||
Balance
at June 30, 2007
|
$
|
1,021
|
$
|
4,966
|
$
|
338
|
$
|
95
|
$
|
6,420
|
||||||
|
||||||||||||||||
Amortization
and impairment losses
|
||||||||||||||||
Balance
at January 1, 2004
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||
Amortization
for the period
|
(318
|
)
|
—
|
—
|
—
|
(318
|
)
|
|||||||||
Write
off on utilization of unrecognized tax assets arising from business
combinations
|
—
|
(403
|
)
|
—
|
—
|
(403
|
)
|
|||||||||
Translation
adjustment
|
(18
|
)
|
(24
|
)
|
—
|
—
|
(42
|
)
|
||||||||
Balance
at December 31, 2004
|
(336
|
)
|
(427
|
)
|
—
|
—
|
(763
|
)
|
||||||||
Amortization
for the period
|
(159
|
)
|
—
|
—
|
—
|
(159
|
)
|
|||||||||
Write
off on utilization of unrecognized tax assets arising from business
combinations
|
—
|
(98
|
)
|
—
|
—
|
(98
|
)
|
|||||||||
Translation
adjustment
|
10
|
11
|
—
|
—
|
21
|
|||||||||||
Balance
at June 30, 2005
|
(485
|
)
|
(514
|
)
|
—
|
—
|
(999
|
)
|
||||||||
Amortization
for the period
|
(347
|
)
|
—
|
—
|
(16
|
)
|
(363
|
)
|
||||||||
Write
off on utilization of unrecognized tax assets arising from business
combinations
|
-
|
(678
|
)
|
—
|
—
|
(678
|
)
|
|||||||||
Translation
adjustment
|
28
|
38
|
—
|
—
|
66
|
|||||||||||
Balance
at June 30, 2006
|
(804
|
)
|
(1,154
|
)
|
—
|
(16
|
)
|
(1,974
|
)
|
|||||||
Amortization
for the period
|
(35
|
)
|
-
|
—
|
(8
|
)
|
(43
|
)
|
||||||||
Translation
adjustment
|
(134
|
)
|
(188
|
)
|
—
|
(2
|
)
|
(324
|
)
|
|||||||
Balance
at June 30, 2007
|
$
|
(973
|
)
|
$
|
(1,342
|
)
|
$
|
—
|
$
|
(26
|
)
|
$
|
(2,341
|
)
|
|
|
At
June 30,
|
|
||||
|
|
2007
|
|
2006
|
|
||
|
|
(-000-)
|
|||||
|
|
|
|||||
Trade
payables
|
$
|
4,684
|
$
|
7,714
|
|||
Accrued
liabilities
|
2,394
|
985
|
|||||
Unearned
revenue
|
1,495
|
413
|
|||||
Fair
value of derivatives
|
68
|
21
|
|||||
|
$
|
8,641
|
$
|
9,133
|
|
At
June 30,
|
|
|||||
|
|
2007
|
|
2006
|
|
||
|
|
(-000-)
|
|||||
|
|
|
|||||
Current
liabilities
|
|||||||
Bank
overdraft and receivables financing facility
|
$
|
6,217
|
$
|
1,552
|
|||
Current
portion of bank loans
|
3,167
|
4,257
|
|||||
Other
loans
|
42
|
53
|
|||||
Current
portion of capital lease liabilities
|
933
|
664
|
|||||
|
10,359
|
6,526
|
|||||
|
|||||||
Non-current
liabilities
|
|||||||
Bank
loans, net of current portion
|
22,696
|
13,214
|
|||||
Non-convertible
notes
|
10,724
|
7,957
|
|||||
B
class notes
|
-
|
4,858
|
|||||
Capital
lease liabilities, net of current portion
|
391
|
1,126
|
|||||
|
$
|
33,811
|
$
|
27,155
|
|
At
June 30,
|
|
|||||
|
|
2007
|
|
2006
|
|
||
|
|
(-000-)
|
|||||
Financing
facilities
|
|||||||
Bank
overdraft
|
$
|
866
|
$
|
745
|
|||
Receivables
financing facility
|
6,366
|
5,476
|
|||||
Secured
bank loans
|
40,969
|
31,366
|
|||||
|
$
|
48,201
|
$
|
37,587
|
|||
|
|||||||
Facilities
utilized at reporting date
|
|||||||
Bank
overdraft
|
$
|
545
|
$
|
682
|
|||
Receivables
financing facility
|
5,672
|
870
|
|||||
Secured
bank loans
|
37,084
|
25,808
|
|||||
|
$
|
43,301
|
$
|
27,360
|
|||
|
|||||||
Facilities
not utilized at reporting date
|
|||||||
Bank
overdraft
|
$
|
321
|
$
|
63
|
|||
Receivables
financing facility
|
694
|
4,606
|
|||||
Secured
bank loans
|
3,885
|
5,558
|
|||||
|
$
|
4,900
|
$
|
10,227
|
Year
Ending
|
||||
June
30,
|
(-000-)
|
|
||
2008
|
$
|
3,176
|
||
2009
|
5,365
|
|||
2010
|
17,331
|
|
|
2007
|
|
2006
|
|
||||||||||||||
|
|
Minimum
lease
payments
|
|
Interest
|
|
Principal
|
|
Minimum
lease
payments
|
|
Interest
|
|
Principal
|
|
||||||
|
|
(-000-)
|
|||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||
Less
than one year
|
$
|
1,005
|
$
|
72
|
$
|
933
|
$
|
800
|
$
|
136
|
$
|
664
|
|||||||
Between
one and five years
|
421
|
30
|
391
|
1,197
|
71
|
1,126
|
|||||||||||||
More
than five years
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
|
$
|
1,426
|
$
|
102
|
$
|
1,324
|
$
|
1,997
|
$
|
207
|
$
|
1,790
|
|
At
June 30,
|
|
|||||
|
|
2007
|
|
2006
|
|
||
|
|
(-000-)
|
|||||
|
|
|
|||||
Current
|
|||||||
Liability
for annual leave (vacation)
|
$
|
656
|
$
|
566
|
|||
Liability
for long service leave (vacation)
|
199
|
136
|
|||||
Cash
settled share-based transactions
|
759
|
—
|
|||||
|
$
|
1,614
|
$
|
702
|
|||
|
|||||||
Non
Current
|
|||||||
Liability
for long service leave
|
$
|
171
|
$
|
341
|
|||
Cash
settled share-based transactions
|
—
|
188
|
|||||
|
171
|
529
|
|||||
|
|||||||
Total
employee benefits
|
$
|
1,785
|
$
|
1,231
|
|
Leasehold
|
|
|
|||||||
|
Makegood
|
Deferred
|
|
|||||||
|
costs
|
Consideration |
Total
|
|||||||
|
(-000-)
|
|||||||||
Balance
at January 1, 2004
|
$
|
—
|
$
|
—
|
$
|
—
|
||||
Provision
made during the year
|
6
|
—
|
6
|
|||||||
Balance
at December 31, 2004
|
6
|
—
|
6
|
|||||||
Provision
made during the year
|
—
|
—
|
—
|
|||||||
Balance
at June 30, 2005
|
6
|
—
|
6
|
|||||||
Provisions
made during the year
|
—
|
429
|
429
|
|||||||
Translation
adjustment
|
—
|
(10
|
)
|
(10
|
)
|
|||||
Balance
at June 30, 2006
|
6
|
419
|
425
|
|||||||
Provision
made during the year
|
17
|
—
|
17
|
|||||||
Payments
during the year
|
—
|
(451
|
)
|
(451
|
)
|
|||||
Adjustment
to discount
|
2
|
—
|
2
|
|||||||
Translation
adjustment
|
1
|
32
|
33
|
|||||||
Balance
at June 30, 2007
|
$
|
26
|
$
|
—
|
$
|
26
|
||||
|
||||||||||
Balance
at June 30, 2006:
|
||||||||||
Current
|
$
|
—
|
$
|
219
|
$
|
219
|
||||
Non-current
|
6
|
200
|
206
|
|||||||
|
$
|
6
|
$
|
419
|
$
|
425
|
||||
|
||||||||||
Balance
at June 30, 2007:
|
||||||||||
Current
|
$
|
—
|
$
|
—
|
$
|
—
|
||||
Non-current
|
26
|
—
|
26
|
|||||||
|
$
|
26
|
$
|
—
|
$
|
26
|
|
At
June 30,
|
||||||
|
2007
|
2006
|
|||||
|
(-000-)
|
||||||
Share
Capital
|
|||||||
8,154,000
and 2,160,000 Ordinary (Common) Shares in 2007 and 2006,
respectively
|
$
|
3,441
|
$
|
817
|
|||
-0-
and 4,322,590 Class A Shares in 2007 and 2006,
respectively
|
—
|
2,624
|
|||||
-0-
and 100 Class C Shares in 2007 and 2006, respectively
|
—
|
—
|
|||||
1 and
-0- Class D Share in 2007 and 2006, respectively
|
8,746
|
—
|
|||||
|
$
|
12,187
|
$
|
3,441
|
June
30, 2007
|
Effective interest
rate
%
|
<
1 year
|
1-2
years
|
2-5
years
|
>5
years
|
Total
|
|||||||||||||
(-000-)
|
|||||||||||||||||||
Fixed
rate
|
|||||||||||||||||||
Lease
receivables
|
15.8
|
%
|
$
|
429
|
$
|
408
|
$
|
146
|
$
|
—
|
$
|
983
|
|||||||
Capital
lease liabilities
|
9.2
|
%
|
(934
|
)
|
(301
|
)
|
(89
|
)
|
—
|
(1,324
|
)
|
||||||||
Bank
loans
|
6.0
|
%
|
(1,347
|
)
|
(3,801
|
)
|
(8,979
|
)
|
—
|
(14,127
|
)
|
||||||||
Other
loans
|
4.0
|
%
|
(42
|
)
|
—
|
—
|
—
|
(42
|
)
|
||||||||||
Non-convertible
notes
|
15.0
|
%
|
—
|
—
|
(10,724
|
)
|
—
|
(10,724
|
)
|
||||||||||
|
|||||||||||||||||||
Variable
rate
|
|||||||||||||||||||
Cash
and cash equivalents
|
4.2
|
%
|
886
|
—
|
—
|
—
|
886
|
||||||||||||
Interest
rate swap
|
6.0
|
%
|
300
|
—
|
—
|
—
|
300
|
||||||||||||
Bank
loans
|
7.5
|
%
|
(1,820
|
)
|
(1,564
|
)
|
(8,352
|
)
|
—
|
(11,736
|
)
|
||||||||
Bank
overdraft
|
BBSW
+ 1.65
|
%
|
(6,217
|
)
|
—
|
—
|
—
|
(6,217
|
)
|
||||||||||
|
$
|
(8,745
|
)
|
$
|
(5,258
|
)
|
$
|
(27,998
|
)
|
$
|
—
|
$
|
(42,001
|
)
|
June
30, 2006
|
Effective interest
rate %
|
<
1 year
|
1-2
years
|
2-5
years
|
>5
years
|
Total
|
|||||||||||||
(-000-)
|
|||||||||||||||||||
Fixed
rate
|
|||||||||||||||||||
Lease
receivables
|
18.1
|
%
|
$
|
245
|
$
|
277
|
$
|
288
|
$
|
—
|
$
|
810
|
|||||||
Capital
lease liabilities
|
9.0
|
%
|
(664
|
)
|
(806
|
)
|
(320
|
)
|
—
|
(1,790
|
)
|
||||||||
Other
loans
|
4.2
|
%
|
(53
|
)
|
—
|
—
|
—
|
(53
|
)
|
||||||||||
Non-convertible
notes
|
15.0
|
%
|
—
|
—
|
—
|
(7,957
|
)
|
(7,957
|
)
|
||||||||||
B
class notes
|
15.0
|
%
|
—
|
—
|
—
|
(4,858
|
)
|
(4,858
|
)
|
||||||||||
|
|||||||||||||||||||
Variable
rate
|
|||||||||||||||||||
Cash
and cash equivalents
|
3.3
|
%
|
567
|
—
|
—
|
—
|
567
|
||||||||||||
Bank
loans
|
BBSW
+ 1.10
|
%
|
(3,210
|
)
|
(1,216
|
)
|
(7,838
|
)
|
—
|
(12,264
|
)
|
||||||||
Interest
rate swap
|
6.0
|
%
|
96
|
—
|
—
|
—
|
96
|
||||||||||||
Bank
overdraft
|
BBSW
+ 1.65
|
%
|
(1,552
|
)
|
—
|
—
|
—
|
(1,552
|
)
|
||||||||||
Commercial
bills
|
6.9
|
%
|
(998
|
)
|
(1,040
|
)
|
(3,169
|
)
|
—
|
(5,207
|
)
|
||||||||
|
$
|
(5,569
|
)
|
$
|
(2,785
|
)
|
$
|
(11,039
|
)
|
$
|
(12,815
|
)
|
$
|
(32,208
|
)
|
|
Carrying amount
|
Fair value
|
Carrying amount
|
Fair value
|
|||||||||
|
At
June 30,
|
||||||||||||
|
2007
|
2007
|
2006
|
2006
|
|||||||||
|
(-000-)
|
||||||||||||
Cash
and cash equivalents
|
$
|
886
|
$
|
886
|
$
|
567
|
$
|
567
|
|||||
Trade
and other receivables
|
12,543
|
12,543
|
7,110
|
7,110
|
|||||||||
Lease
receivables
|
1,843
|
1,843
|
811
|
811
|
|||||||||
Interest
rate swap
|
300
|
300
|
96
|
96
|
|||||||||
Bank
overdraft
|
(6,217
|
)
|
(6,217
|
)
|
(1,552
|
)
|
(1,552
|
)
|
|||||
Trade
and other payables
|
(8,573
|
)
|
(8,573
|
)
|
(9,112
|
)
|
(9,112
|
)
|
|||||
Other
loan
|
(42
|
)
|
(42
|
)
|
(53
|
)
|
(53
|
)
|
|||||
Capital
lease liabilities
|
(1,324
|
)
|
(1,324
|
)
|
(1,790
|
)
|
(1,790
|
)
|
|||||
Bank
loans
|
(20,195
|
)
|
(20,195
|
)
|
(13,754
|
)
|
(13,754
|
)
|
|||||
Held
to maturity liabilities
|
(1,717
|
)
|
(1,717
|
)
|
—
|
—
|
|||||||
Commercial
bills
|
(3,951
|
)
|
(3,951
|
)
|
(3,717
|
)
|
(3,717
|
)
|
|||||
Forward
exchange contracts
|
(68
|
)
|
(68
|
)
|
(21
|
)
|
(21
|
)
|
|||||
Non-convertible
notes
|
(10,724
|
)
|
(10,724
|
)
|
(7,957
|
)
|
(7,957
|
)
|
|||||
B
class notes
|
—
|
—
|
(4,858
|
)
|
(4,858
|
)
|
|||||||
|
$
|
(37,239
|
)
|
$
|
(37,239
|
)
|
$
|
(34,230
|
)
|
$
|
(34,230
|
)
|
|
|
At
June 30,
|
||
|
|
2007
|
|
2006
|
Derivatives
|
|
6.0%
|
|
6.0%
|
Loans
and borrowings
|
|
3.9%
- 15.0%
|
|
4.2%
- 15.0%
|
Leases
|
|
9.2%
|
|
9.0%
|
Receivables
|
|
15.8%
|
|
18.1%
|
|
(-000-)
|
|||
Less
than one year
|
$
|
3,191
|
||
One-two
years
|
1,199
|
|||
Two-three
years
|
1,026
|
|||
Three-four
years
|
629
|
|||
Four-five
years
|
296
|
|||
Thereafter
|
423
|
|||
|
$
|
6,764
|
|
At
June 30,
|
||||||
|
2007
|
2006
|
|||||
|
(-000-)
|
||||||
Less
than one year
|
$
|
364
|
$
|
360
|
|||
Between
one and five years
|
414
|
669
|
|||||
More
than five years
|
—
|
—
|
|||||
|
$
|
778
|
$
|
1,029
|
|
Professional
Sales and Hire
|
|||||||||
|
Fair
values
|
Fair
value
adjustments
|
Carrying
amounts
|
|||||||
|
(-000-)
|
|||||||||
|
||||||||||
Container
for lease fleet
|
$
|
312
|
$
|
88
|
$
|
224
|
||||
Deferred
tax liability
|
(26
|
)
|
(26
|
)
|
—
|
|||||
Net
identifiable assets and liabilities
|
$
|
286
|
$
|
62
|
$
|
224
|
||||
|
||||||||||
Goodwill
on acquisitions
|
$
|
17
|
||||||||
Consideration
paid, satisfied in cash
|
303
|
|||||||||
|
||||||||||
Net
cash outflow
|
$
|
303
|
·
|
Royal
Wolf Hi-Tech Pty Limited
|
·
|
Australian
Container Network Pty Ltd
|
·
|
Cape
Containers Pty Limited
|
Royal
Wolf Hi-Tech
|
Australian Container Network
|
Cape
Containers
|
||||||||||||||||||||||||||
|
Fair
Values
|
Fair
Value
Adjust-
ments
|
Carrying
Amounts
|
Fair
Values
|
Fair
Value
Adjust- ments
|
Carrying
Amounts
|
Fair
Values
|
Fair
value
Adjust- ments
|
Carrying
Amounts
|
|||||||||||||||||||
|
(-000-)
|
|||||||||||||||||||||||||||
Property,
plant and equipment
|
$
|
91
|
$
|
22
|
$
|
69
|
$
|
147
|
$
|
17
|
$
|
130
|
$
|
2
|
$
|
—
|
$
|
2
|
||||||||||
Container
for lease fleet
|
1,245
|
522
|
723
|
3,327
|
2,039
|
1,288
|
487
|
129
|
358
|
|||||||||||||||||||
Inventories
|
74
|
22
|
52
|
418
|
128
|
290
|
—
|
—
|
—
|
|||||||||||||||||||
Trade
and other receivables
|
163
|
—
|
163
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
Cash
and cash equivalents
|
70
|
—
|
70
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
Long-term
debt
|
(353
|
)
|
—
|
(353
|
)
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Deferred
tax liability
|
(170
|
)
|
(170
|
)
|
—
|
(655
|
)
|
(655
|
)
|
—
|
(39
|
)
|
(39
|
)
|
—
|
|||||||||||||
Trade
and other payables
|
(170
|
)
|
—
|
(170
|
)
|
—
|
—
|
—
|
(13
|
)
|
—
|
(13
|
)
|
|||||||||||||||
|
||||||||||||||||||||||||||||
Net
identifiable assets and liabilities
|
$
|
950
|
$
|
396
|
$
|
554
|
$
|
3,237
|
$
|
1,529
|
$
|
1,708
|
$
|
437
|
$
|
90
|
$
|
347
|
||||||||||
|
||||||||||||||||||||||||||||
Goodwill
on acquisitions
|
$
|
210
|
$
|
911
|
$
|
183
|
||||||||||||||||||||||
Consideration
paid, satisfied in cash*
|
591
|
3,715
|
619
|
|||||||||||||||||||||||||
Deferred
consideration accrued
|
—
|
432
|
—
|
|||||||||||||||||||||||||
Cash
(acquired)
|
(70
|
)
|
—
|
—
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net
cash outflow
|
$
|
521
|
$
|
3,715
|
$
|
619
|
|
|
|
Six
Months
|
|
|||||||||
|
Year
Ended
|
Ended
|
Year
Ended
|
||||||||||
|
June
30,
|
December
31,
|
|||||||||||
|
2007
|
2006
|
2005
|
2004
|
|||||||||
|
(-000-)
|
||||||||||||
Cash
flows from operating activities
|
|||||||||||||
Profit/(loss)
for the period
|
$
|
312
|
$
|
(428
|
)
|
$
|
(177
|
)
|
$
|
284
|
|||
Adjustments
for:
|
|||||||||||||
Gain
on sale of property, plant and equipment
|
(23
|
)
|
(21
|
)
|
(13
|
)
|
(21
|
)
|
|||||
Foreign
exchange (gain) / loss
|
(134
|
)
|
(38
|
)
|
(252
|
)
|
287
|
||||||
Unrealized
loss on forward exchange contracts
|
40
|
22
|
—
|
—
|
|||||||||
Unrealized
gain on interest rate swap
|
(174
|
)
|
(219
|
)
|
—
|
—
|
|||||||
Depreciation
and amortization
|
2,577
|
2,668
|
1,480
|
2,504
|
|||||||||
Equity
pick-up in net income of Hi-Tech
|
—
|
—
|
(133
|
)
|
(68
|
)
|
|||||||
Investment
income
|
(239
|
)
|
(156
|
)
|
(80
|
)
|
(87
|
)
|
|||||
Interest
expense
|
4,378
|
3,017
|
1,127
|
2,397
|
|||||||||
Income
tax expense
|
490
|
214
|
75
|
400
|
|||||||||
Cash
settled share based payment expenses
|
336
|
222
|
40
|
96
|
|||||||||
Operating
profit before changes in working capital and
provisions
|
7,563
|
5,281
|
2,067
|
5,792
|
|||||||||
(Increase)
/ decrease in trade and other receivables
|
(5,017
|
)
|
(1,778
|
)
|
(458
|
)
|
(977
|
)
|
|||||
(Increase)
/ decrease in inventories
|
12,017
|
4,959
|
(334
|
)
|
2,882
|
||||||||
Increase
/ (decrease) in trade and other payables
|
(1,869
|
)
|
3,299
|
1,518
|
(2,762
|
)
|
|||||||
Increase
/ (decrease) in provisions and employee benefits
|
12
|
411
|
226
|
33
|
|||||||||
|
12,706
|
12,172
|
3,019
|
4,968
|
|||||||||
Interest
(paid)/received, net
|
(3,799
|
)
|
(2,118
|
)
|
(902
|
)
|
(1,182
|
)
|
|||||
Income
taxes (paid)/received
|
49
|
-
|
(587
|
)
|
576
|
||||||||
Net
cash from operating activities
|
$
|
8,956
|
$
|
10,054
|
$
|
1,530
|
$
|
4,362
|
|
|
Item 13.
|
Other
Expenses of Issuance and
Distribution.
|
Initial
Trustee’s fee
|
$
|
0
|
||
SEC
registration fee
|
0
|
|||
NASD
filing fee
|
0
|
|||
Accounting
fees and expenses
|
25,000
|
|||
Printing
and engraving expenses
|
50,000
|
|||
Legal
fees and expenses
|
25,000
|
|||
American
Stock Exchange filing fee
|
0
|
|||
Miscellaneous
|
10,000
|
|||
Total
|
$
|
110,000
|
Item 14.
|
Indemnification
of Directors and
Officers.
|
Item 15.
|
Recent
Sales of Unregistered
Securities.
|
Item 16.
|
Exhibits
and Financial Statement
Schedules.
|
Exhibit
No.
|
Description
|
|
|
|
|
2.1
|
Business
Sale Agreement
|
|
4 .1
|
Specimen
Unit Certificate.*
|
|
4 .2
|
Specimen
Common Stock Certificate.*
|
|
4 .3
|
Specimen
Warrant Certificate.*
|
|
10 .1
|
Employment
Agreement between General Finance Corporation and Christopher A.
Wilson
|
|
10 .2
|
Preferred
Supply Agreement among General Electrical Capital Container Finance
Corporation, Genstar Container Corporation, GE SeaCo SRL, Sea
Containers
Ltd., Royal Wolf Trading Australia Pty Limited and GE SeaCo Australia
Pty
Limited**
|
10 .3
|
Variation
Letter between Australia and New Zealand Banking Group Limited
and Royal
Wolf Australia Group
|
|
21 .1
|
Subsidiaries of General Finance Corporation |
23 .1
|
Consent
of Grobstein, Horwath & Company LLP.
|
|
24
|
Power
of Attorney*
|
* |
Previously
filed.
|
** |
Portions
of this exhibit have been redacted and are subject to a request
for
confidential treatment filed separately with the Secretary
of the
Securities and Exchange Commission pursuant to Rule 406 under
the
Securities Act of 1933, as
amended.
|
|
|
Item 17.
|
Undertakings.
|
|
(1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration
statement:
|
|
(i) To include any prospectus required by Section 10(a)(3) of
the Securities Act of 1933;
|
|
|
|
(ii) To reflect in the prospectus any facts or events arising after
the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate,
represent a fundamental change in the information set forth in the
registration statement. Notwithstanding the foregoing, any increase
or
decrease in volume of securities offered (if the total dollar value
of
securities offered would not exceed that which was registered) and
any
deviation from the low or high end of the estimated maximum offering
range
may be reflected in the form of prospectus filed with the Commission
pursuant to Rule 424(b) if, in the aggregate, the changes in volume
and price represent no more than 20 percent change in the maximum
aggregate offering price set forth in the “Calculation of Registration
Fee” table in the effective registration statement.
|
|
|
|
(iii) To include any material information with respect to the plan of
distribution not previously disclosed in the registration statement
or any
material change to such information in the registration
statement.
|
|
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall
be deemed
to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be
deemed
to be the initial bona fide offering thereof.
|
|
|
|
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold
at
the termination of the offering.
|
|
|
|
(5) That, for the purpose of determining liability under the
Securities Act of 1933 to any
purchaser:
|
|
(i) If the registrant is relying on Rule 430B (§ 230.430B of
this chapter):
|
|
(A) Each prospectus filed by the registrant pursuant to
Rule 424(b)(3) shall be deemed to be part of the registration
statement as of the date the filed prospectus was deemed part of
and
included in the registration statement; and
|
|
|
|
(B) Each prospectus required to be filed pursuant to
Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement
in reliance on Rule 430B relating to an offering made pursuant to
Rule 415(a)(1)(i), (vii), or(x) for the purpose of providing the
information required by section 10(a) of the Securities Act of 1933
shall
be deemed to be part of and included in the registration statement
as of
the earlier of the date such form of prospectus is first used after
effectiveness or the date of the first contract of sale of securities
in
the offering described in the prospectus. As provided in Rule 430B,
for liability purposes of the issuer and any person that is at that
date
an underwriter, such date shall be deemed to be a new effective date
of
the registration statement relating to the securities in the registration
statement to which that prospectus relates, and the offering of such
securities at that time shall be deemed to be the initial bona fide
offering thereof. Provided, however, that no statement made in a
registration statement or prospectus that is part of the registration
statement or made in a document incorporated or deemed incorporated
by
reference into the registration statement or prospectus that is part
of
the registration statement will, as to a purchaser with a time of
contract
of sale prior to such effective date, supersede or modify any statement
that was made in the registration statement or prospectus that was
part of
the registration statement or made in any such document immediately
prior
to such effective date; or
|
|
(ii) If the registrant is subject to Rule 430C, each prospectus
filed pursuant to Rule 424(b) as part of a registration statement
relating to an offering, other than registration statements relying
on
Rule 430B or other than prospectuses filed in reliance on
Rule 430A, shall be deemed to be part of and included in the
registration statement as of the date it is first used after
effectiveness. Provided, however, that no statement made in a registration
statement or prospectus that is part of the registration
statement or made in a document incorporated or deemed incorporated
by
reference into the registration statement or prospectus that is part
of
the registration statement will, as to a purchaser with a time of
contract
of sale prior to such first use, supersede or modify any statement
that
was made in the registration statement or prospectus that was part
of the
registration statement or made in any such document immediately prior
to
such date of first use.
|
|
(6) That, for the purpose of determining liability of the registrant
under the Securities Act of 1933 to any purchaser in the initial
distribution of the securities:
|
|
(i)
|
Any
preliminary prospectus or prospectus of the undersigned registrant
relating to the offering required to be filed pursuant to
Rule 424;
|
|
|
|
|
(ii)
|
Any
free writing prospectus relating to the offering prepared by or on
behalf
of the undersigned registrant or used or referred to by the undersigned
registrant;
|
|
|
|
|
(iii)
|
The
portion of any other free writing prospectus relating to the offering
containing material information about the undersigned registrant
or its
securities provided by or on behalf of the undersigned registrant;
and
|
|
(iv)
|
Any
other communication that is an offer in the offering made by the
undersigned registrant to the
purchaser.
|
|
(1) For purposes of determining any liability under the Securities
Act of 1933, the information omitted from the form of prospectus
filed as
part of this registration statement in reliance upon Rule 430A and
contained in a form of prospectus filed by the registrant pursuant
to
Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall
be deemed to be part of this registration statement as of the time
it was
declared effective.
|
|
|
|
(2) For the purpose of determining any liability under the Securities
Act of 1933, each post-effective amendment that contains a form of
prospectus shall be deemed to be a new registration statement relating
to
the securities offered therein, and the offering of such securities
at
that time shall be deemed to be the initial bona fide offering
thereof.
|
GENERAL
FINANCE CORPORATION
|
||
|
|
|
By: |
/s/
Ronald F. Valenta
|
|
Ronald
F. Valenta
|
||
Chief
Executive Officer
|
Name
|
|
Position
|
|
Date
|
||
|
|
|
|
|
||
|
||||||
/s/
Ronald F. Valenta
Ronald
F. Valenta
|
|
Chief
Executive Officer and Director
|
|
January
29, 2008
|
||
/s/ Charles E. Barrantes
Charles E. Barrantes |
Executive
Vice President and Chief Financial Officer
|
January
29, 2008
|
||||
*
James
B. Roszak
|
|
Director
|
|
January
29, 2008
|
||
|
||||||
*
Lawrence
Glascott
|
|
Chariman
of the Board of Directors
|
|
January
29, 2008
|
||
|
||||||
*
Manuel
Marrero
|
|
Director
|
|
January
29, 2008
|
||
|
||||||
*
David
M. Connell
|
|
Director
|
|
January
29, 2008
|
*By:
|
/s/
Ronald F. Valenta
Ronald F. Valenta |
|
Attorney-in-fact
|
|
January
29, 2008
|