IPX Interpool

Interpool, Inc. (NYSE: IPX) announced today that the company has filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2006 with the Securities and Exchange Commission. In its Form 10-Q, Interpool reported that, for the three months ended September 30, 2006, revenues were $93.4 million compared to $107.5 million for the third quarter of 2005. For the first nine months of 2006, revenues totaled $285.6 million compared to $309.9 million for the same period last year. The reduction in revenues primarily reflects the sale of a substantial portion of the company�s container operating lease fleet during March, 2006, offset in part by higher revenues from chassis operating leases and management fees. The company reported net income of $6.7 million for the third quarter of 2006 ($0.21 per diluted share), which reflected a reduction in net income associated with the containers sold during March, income tax expense of $5.8 million related to Interpool�s decision during September, 2006, to sell its 50% ownership position in Container Applications International (CAI), and $0.9 million of net income from the settlement of an insurance claim. Excluding the income tax expense and insurance proceeds, Interpool�s earnings for the third quarter of 2006 would have been approximately $11.5 million. This compares with net income of $43.2 million for the third quarter of 2005 ($1.39 per diluted share). The third quarter of 2005 included a non-cash, non-taxable benefit of $16.0 million related to an adjustment to the fair value of warrants, $11.5 million (after taxes) from the sale of a non-transportation company in which Interpool held a minority equity position, and $3.4 million in after tax income from interest rate swaps. Excluding these items, Interpool�s earnings for the third quarter of 2005 would have been $12.3 million. For the nine months ended September 30, 2006, Interpool reported net income of $66.3 million ($2.07 per diluted share), which included $60.2 million (after taxes) from the gain on the container sale, an after tax impairment charge of $7.6 million associated with the conversion of operating leases to direct financing leases for one customer, income tax expense of $5.8 million related to Interpool�s decision during September, 2006, to sell its 50% ownership position in Container Applications International, a non-cash, non-taxable expense of $5.2 million for an adjustment to the fair value of warrants, and up-front costs to store and position chassis for the growing chassis pool market. This compares with net income of $80.5 million ($2.55 per diluted share) for the first nine months of 2005, which included a non-cash, non-taxable benefit of $30.2 million for an adjustment to the fair value of warrants, and $11.5 million (after taxes) from the sale of a non-transportation company in which Interpool held a minority equity position. As previously announced, on October 1, 2006, Interpool sold its 50% common equity interest in CAI for a total price of $77.5 million, consisting of�$40.0 million in cash and a four-year convertible note in the amount of $37.5 million. The company had acquired its equity interest in 1998 for a purchase price of $12.5 million, and the company�s portion of CAI�s net income since its investment amounted to $14.5 million. Based on the decision to sell its interest, the company recorded a deferred tax provision of $5.8 million on the unremitted earnings from its investment in CAI during the third quarter of 2006. An additional tax provision of approximately $20.2 million related to the gain on sale will be recorded in the fourth quarter. As a result, the gain on the sale of the company�s investment in CAI of approximately $24.4 million after taxes will be reflected as a reduction to net income of $5.8 million during the quarter ended September 30, 2006 and an increase to net income in the fourth quarter of approximately $30.2 million. Martin Tuchman, Chairman and Chief Executive Officer, said, "We continue to see strength in the chassis marketplace, with the importance of chassis pools continuing to increase. Our recent transaction with BNSF railroad is further evidence of the importance of pooling arrangements, and of the confidence our customers have in us as a pool manager and supplier of leased equipment. We have a very strong position in the chassis business, and we expect to continue to develop that position in the future. The container business is currently very competitive, with demand somewhat softer than in recent years. However, we are very active in the marketplace and have added about $50 million in book value to our leasing portfolio over the past six months, with more in the pipeline. In addition, the actions we�ve taken over the past twelve months have given us a very strong financial position that will allow us to take advantage of future opportunities.� The company will hold a conference call on Friday, November 10, 2006 at 11:30 a.m. Eastern Standard Time. Interested investors should call 888-694-4641 ten minutes prior to the time of the conference call. Callers from outside North America should call 973-582-2734 and hold for an operator. Identify yourself and your company and inform the operator that you are participating in the Interpool Third Quarter Earnings Conference Call. If you are unable to access the Conference Call at 11:30 a.m. EST, please call 877-519-4471 to access the taped digital replay. To access the replay, please call and enter the digital PIN 8086916. This replay will first be available at 2:00 p.m. EST, November 10, 2006 and will be available until 2:00 p.m. EST, December 10, 2006. Investors will also have the opportunity to listen to the Conference Call live at the company�s web site www.interpool.com. To listen to the live call via the Internet, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live web cast, a replay will be available two hours after the call is completed and will remain available for thirty days. Interpool is one of the world's leading suppliers of equipment and services to the transportation industry. The company is the world's largest lessor of intermodal container chassis and a world-leading lessor of cargo containers used in international trade. This Press Release contains certain forward-looking statements regarding future circumstances. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements, including in particular the risks and uncertainties described in the company's SEC filings. The Company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof. Interpool, Inc. (NYSE: IPX) announced today that the company has filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2006 with the Securities and Exchange Commission. In its Form 10-Q, Interpool reported that, for the three months ended September 30, 2006, revenues were $93.4 million compared to $107.5 million for the third quarter of 2005. For the first nine months of 2006, revenues totaled $285.6 million compared to $309.9 million for the same period last year. The reduction in revenues primarily reflects the sale of a substantial portion of the company's container operating lease fleet during March, 2006, offset in part by higher revenues from chassis operating leases and management fees. The company reported net income of $6.7 million for the third quarter of 2006 ($0.21 per diluted share), which reflected a reduction in net income associated with the containers sold during March, income tax expense of $5.8 million related to Interpool's decision during September, 2006, to sell its 50% ownership position in Container Applications International (CAI), and $0.9 million of net income from the settlement of an insurance claim. Excluding the income tax expense and insurance proceeds, Interpool's earnings for the third quarter of 2006 would have been approximately $11.5 million. This compares with net income of $43.2 million for the third quarter of 2005 ($1.39 per diluted share). The third quarter of 2005 included a non-cash, non-taxable benefit of $16.0 million related to an adjustment to the fair value of warrants, $11.5 million (after taxes) from the sale of a non-transportation company in which Interpool held a minority equity position, and $3.4 million in after tax income from interest rate swaps. Excluding these items, Interpool's earnings for the third quarter of 2005 would have been $12.3 million. For the nine months ended September 30, 2006, Interpool reported net income of $66.3 million ($2.07 per diluted share), which included $60.2 million (after taxes) from the gain on the container sale, an after tax impairment charge of $7.6 million associated with the conversion of operating leases to direct financing leases for one customer, income tax expense of $5.8 million related to Interpool's decision during September, 2006, to sell its 50% ownership position in Container Applications International, a non-cash, non-taxable expense of $5.2 million for an adjustment to the fair value of warrants, and up-front costs to store and position chassis for the growing chassis pool market. This compares with net income of $80.5 million ($2.55 per diluted share) for the first nine months of 2005, which included a non-cash, non-taxable benefit of $30.2 million for an adjustment to the fair value of warrants, and $11.5 million (after taxes) from the sale of a non-transportation company in which Interpool held a minority equity position. As previously announced, on October 1, 2006, Interpool sold its 50% common equity interest in CAI for a total price of $77.5 million, consisting of $40.0 million in cash and a four-year convertible note in the amount of $37.5 million. The company had acquired its equity interest in 1998 for a purchase price of $12.5 million, and the company's portion of CAI's net income since its investment amounted to $14.5 million. Based on the decision to sell its interest, the company recorded a deferred tax provision of $5.8 million on the unremitted earnings from its investment in CAI during the third quarter of 2006. An additional tax provision of approximately $20.2 million related to the gain on sale will be recorded in the fourth quarter. As a result, the gain on the sale of the company's investment in CAI of approximately $24.4 million after taxes will be reflected as a reduction to net income of $5.8 million during the quarter ended September 30, 2006 and an increase to net income in the fourth quarter of approximately $30.2 million. Martin Tuchman, Chairman and Chief Executive Officer, said, "We continue to see strength in the chassis marketplace, with the importance of chassis pools continuing to increase. Our recent transaction with BNSF railroad is further evidence of the importance of pooling arrangements, and of the confidence our customers have in us as a pool manager and supplier of leased equipment. We have a very strong position in the chassis business, and we expect to continue to develop that position in the future. The container business is currently very competitive, with demand somewhat softer than in recent years. However, we are very active in the marketplace and have added about $50 million in book value to our leasing portfolio over the past six months, with more in the pipeline. In addition, the actions we've taken over the past twelve months have given us a very strong financial position that will allow us to take advantage of future opportunities." The company will hold a conference call on Friday, November 10, 2006 at 11:30 a.m. Eastern Standard Time. Interested investors should call 888-694-4641 ten minutes prior to the time of the conference call. Callers from outside North America should call 973-582-2734 and hold for an operator. Identify yourself and your company and inform the operator that you are participating in the Interpool Third Quarter Earnings Conference Call. If you are unable to access the Conference Call at 11:30 a.m. EST, please call 877-519-4471 to access the taped digital replay. To access the replay, please call and enter the digital PIN 8086916. This replay will first be available at 2:00 p.m. EST, November 10, 2006 and will be available until 2:00 p.m. EST, December 10, 2006. Investors will also have the opportunity to listen to the Conference Call live at the company's web site www.interpool.com. To listen to the live call via the Internet, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live web cast, a replay will be available two hours after the call is completed and will remain available for thirty days. Interpool is one of the world's leading suppliers of equipment and services to the transportation industry. The company is the world's largest lessor of intermodal container chassis and a world-leading lessor of cargo containers used in international trade. This Press Release contains certain forward-looking statements regarding future circumstances. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements, including in particular the risks and uncertainties described in the company's SEC filings. The Company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof.