EXHIBIT 99.1
 
FOR IMMEDIATE RELEASE
GENERAL FINANCE CORPORATION REPORTS SECOND QUARTER FY 2009 RESULTS AND SUSPENDS FISCAL YEAR 2009 GUIDANCE

Pasadena, CA – February 13, 2009
- General Finance Corporation (“General Finance” or “GFN”) (NASDAQ: GFN, GFNCW and GFNCU) today announced its financial results for the quarter ended December 31, 2008 (“QE2 FY 2009”). Results for the quarter included RWA Holdings Pty Limited (“Royal Wolf”), the leading provider of portable storage solutions in Australia and New Zealand and Pac-Van, Inc. (“Pac-Van”), a key provider of modular buildings and mobile office units in the U.S., which was acquired on October 1, 2008. Also provided for comparison purposes are unaudited non-GAAP combined information for the second quarter ended December 31, 2007 (“QE2 FY 2008”), which combines the results of Pac-Van with the consolidated results of General Finance. The actual consolidated results of General Finance for QE2 FY 2008 are included in Form 10-Q for the quarterly period ended December 31, 2008.

General Finance Consolidated QE2 FY 2009 as compared to non-GAAP QE2 FY 2008

 
Total revenues were $42.6 million and adjusted EBITDA (1) (earnings before interest expense, income tax, depreciation and amortization and other non-operating costs and stock based compensation expense of $266,000 in QE2 FY 2009)  was $9.4 million in QE2 FY 2009 versus revenues of $49.2 million and adjusted EBITDA of $11.6 million in QE2 FY 2008;
     
 
Leasing and sales revenue mix was split evenly as leasing revenues increased 6.4% in QE2 FY 2009 compared to QE2 FY 2008;
     
 
Sales revenues declined 27% in QE2 FY 2009 versus QE2 FY 2008 with approximately a third of the decline due to the  economic climate in the Asia-Pacific area combined with an approximate two-thirds of the decline due to the 25% drop in the Australian currency to the U.S. Dollar for the same periods (.8905 to .6704);
     
 
Adjusted EBITDA in QE2 FY 2009  was 22% of total revenue compared to 24% in QE2 FY 2008;
     
 
Foreign currency exchange loss for QE2 FY 2009 was approximately $3.0 million compared to a negligible number in QE2 FY 2008;
     
 
The utilization rate of our lease fleet of approximately 43,000 units declined from 84% to 76% from December 31, 2007 to December 31, 2008, while the size of our lease fleet increased by approximately 26%, as we purchased new units, reduced sub-leased units and completed previously announced acquisitions;
     
 
Net fleet capital expenditures for QE2 FY 2009 were $6.3 million versus approximately $4 million in QE2 FY 2008;
     
 
Fleet inventory at December 31, 2008 was $24.4 million compared to $16.8 million at December 31, 2007, primarily due to the inclusion of Pac-Van’s inventory of $5.4 million, the acquisition of Royal Wolf New Zealand in April 2008 and advance purchases for Australian mining cabins to meet previously forecasted demand;
     
 
We are covenant compliant with both of our senior credit facilities;
     
 
Our total debt outstanding at December 31, 2008 was $194.1 million and our total funded debt to adjusted EBITDA as of the trailing twelve months ending December 31, 2008 was 4.7x.

 
(more)
 
 
 

The following information was filed by General Finance Corp (GFN) on Friday, February 13, 2009 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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