Financing Activities.
Net cash provided from financing activities was
$14.0 million during FY 2019, as compared to $81.2 million provided during FY 2018, a decrease to cash between the periods of $67.2 million. In FY 2018, we issued the Bison Capital Notes for proceeds totaling $80.0 million to,
among other things, acquire the noncontrolling interest of Royal Wolf (see above) and repay the principal of $10.0 million due under the term loan to Credit Suisse (see Note 5 of Notes to Condensed Consolidated Financial Statements). In FY 2019
and FY 2018, financing activities also included net borrowings of $79.9 million and $99.8 million, respectively, on existing credit facilities. These financing activities on our existing credit facilities were primarily to fund our
investment in the container lease fleet, make business acquisitions, pay dividends and manage our operating assets and liabilities. In addition, in FY 2019, $63.3 million was borrowed under the Deutsche Bank Credit Facility to repay the Senior
Term Note; and, in FY 2018, $81.5 million was borrowed from the Deutsche Bank Credit Facility to repay the ANZ/CBA Credit Facility (see Note 5 of Notes to Condensed Consolidated Financial Statements). Deferred financing costs related to the
Bison Capital Notes and Deutsche Bank Credit Facility totaled $3.8 million in FY 2018 versus $0.4 million in FY 2019, which primarily related to the Senior Notes consent solicitation and an amendment to Wells Fargo Credit Facility. Cash of
$2.8 million was used during both periods to pay dividends on primarily our Series C Preferred Stock; and, in FY 2018, Royal Wolf paid a capital stock dividend of $1.0 million to noncontrolling interests (see Note 3 of Notes to Condensed
Consolidated Financial Statements). In FY 2019, we received proceeds of $0.9 million from issuances of common stock on the exercises of stock options versus $0.2 million in FY 2018.
Asset Management
Receivables and inventories were $54.9 million and $37.0 million at March 31, 2019 and $50.5 million and
$22.7 million at June 30, 2018, respectively. At March 31, 2019, DSO in trade receivables were 40 days and 51 days in the Asia-Pacific area and our North American leasing operations, as compared to 35 days and 47 days at June 30,
2018, respectively. The $14.3 million increase in inventories was primarily due to the timing of receipts of sale and fleet units to fulfill known increased demand. Effective asset management is always a significant focus as we strive to apply
appropriate credit and collection controls and maintain proper inventory levels to enhance cash flow and profitability.
The net book
value of our total lease fleet was $455.6 million at March 31, 2019, as compared to $429.4 million at June 30, 2018. At March 31, 2019, we had 98,757 units (25,114 units in retail operations in Australia, 9,438 units in
national account group operations in Australia, 12,718 units in New Zealand, which are considered retail; and 51,487 units in North America) in our lease fleet, as compared to 85,812 units (24,037 units in retail operations in Australia, 8,046 units
in national account group operations in Australia, 10,222 units in New Zealand, which are considered retail; and 43,507 units in North America) at June 30, 2018. At those dates, 76,632 units (20,331 units in retail operations in Australia,
6,735 units in national account group operations in Australia, 10,564 units in New Zealand, which are considered retail; and 39,002 units in North America); and 68,712 units (20,102 units in retail operations in Australia, 5,038 units in national
account group operations in Australia, 8,705 units in New Zealand, which are considered retail; and 34,867 units in North America) were on lease, respectively.
In the Asia-Pacific area, the lease fleet was comprised of 39,567 storage and freight containers and 7,703 portable building containers at
March 31, 2019; and 34,507 storage and freight containers and 7,798 portable building containers at June 30, 2018. At those dates, units on lease were comprised of 32,731 storage and freight containers and 4,899 portable building
containers; and 28,301 storage and freight containers and 5,544 portable building containers, respectively.
In North America, the lease
fleet was comprised of 36,513 storage containers
,
5,111 office containers (GLOs), 4,216 portable liquid storage tank containers, 4,471 mobile offices and 1,176 modular units at March 31, 2019; and 29,518 storage containers
,
4,216
office containers (GLOs), 4,147 portable liquid storage tank containers, 4,447 mobile offices and 1,179 modular units at June 30, 2018. At those dates, units on lease were comprised of 26,927 storage containers, 4,269 office containers, 3,003
portable liquid storage tank containers,3,816 mobile offices and 987 modular units; and 23,040 storage containers, 3,620 office containers, 3,405 portable liquid storage tank containers, 3,792 mobile offices and 1,010
modular units,
respectively.
Contractual Obligations and Commitments
Our material contractual obligations and commitments consist of outstanding borrowings under our credit facilities discussed above and
operating leases for facilities and office equipment. We believe that our contractual obligations have not changed significantly from those included in the Annual Report.
Off-Balance
Sheet Arrangements
We do not maintain any
off-balance
sheet transactions, arrangements, obligations or other
relationships with unconsolidated entities or others that are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital
expenditures or capital resources.
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