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001-32845
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32-0163571
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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39 East Union Street
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Pasadena, California
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91103
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(Address of Principal Executive Offices)
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(Zip Code)
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of Each Class
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Trading Symbol
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Name of Each Exchange
on Which Registered |
Common Stock, $0.0001 par value
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GFN
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NASDAQ Global Market
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9.00% Series C Cumulative Redeemable Perpetual Preferred Stock (Liquidation Preference $100 per share)
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GFNCP
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NASDAQ Global Market
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8.125% Senior Notes due 2021
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GFNSL
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NASDAQ Global Market
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Page
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Item 2.02
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Results of Operations and Financial Condition
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1
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Item 8.01
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Other Events
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1
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Item 9.01
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Financial Statements and Exhibits
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1
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Exhibit 99.1
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Exhibit
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Exhibit Description
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99.1
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GENERAL FINANCE CORPORATION
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Dated: May 5, 2020
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By:
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/s/ CHRISTOPHER A. WILSON
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Christopher A. Wilson
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General Counsel, Vice President and Secretary
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Exhibit
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Number
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Exhibit Description
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99.1
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Quarter Ended March 31,
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Nine Months Ended March 31,
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||||||||
2019
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2020
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2019
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2020
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Revenues
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|||||||||
Sales:
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Lease inventories and fleet
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$ | 25,204 | $ | 29,702 | $ | 92,653 | $ | 88,234 | |
Manufactured units
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1,432 | 2,524 | 7,941 | 6,280 | |||||
26,636 | 32,226 | 100,594 | 94,514 | ||||||
Leasing
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59,573 | 57,744 | 181,400 | 177,462 | |||||
86,209 | 89,970 | 281,994 | 271,976 | ||||||
Costs and expenses
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|||||||||
Cost of sales:
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|||||||||
Lease inventories and fleet (exclusive of the items shown separately below)
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18,100 | 21,444 | 68,210 | 63,260 | |||||
Manufactured units
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1,231 | 1,977 | 6,600 | 5,441 | |||||
Direct costs of leasing operations
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22,923 | 22,968 | 68,851 | 68,587 | |||||
Selling and general expenses
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20,647 | 20,695 | 60,310 | 61,833 | |||||
Depreciation and amortization
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10,897 | 8,613 | 31,952 | 26,633 | |||||
Operating income
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12,411 | 14,273 | 46,071 | 46,222 | |||||
Interest income
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27 | 153 | 108 | 519 | |||||
Interest expense
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(10,207) | (5,981) | (27,700) | (20,235) | |||||
Change in valuation of bifurcated derivatives in Convertible Note
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(1,131) | (11,259) | (22,829) | (6,365) | |||||
Foreign exchange and other
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(3) | (2,096) | (3,296) | (2,405) | |||||
(11,314) | (19,183) | (53,717) | (28,486) | ||||||
Income (loss) before provision for income taxes
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1,097 | (4,910) | (7,646) | 17,736 | |||||
Provision for income taxes
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1,429 | 3,715 | 5,056 | 9,969 | |||||
Net income (loss)
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(332) | (8,625) | (12,702) | 7,767 | |||||
Preferred stock dividends
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(922) | (922) | (2,766) | (2,766) | |||||
Net income (loss) attributable to common
stockholders
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$ | (1,254) | $ | (9,547) | $ | (15,468) | $ | 5,001 | |
Net income (loss) per common share:
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|||||||||
Basic
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$ | (0.04) | $ | (0.32) | $ | (0.53) | $ | 0.17 | |
Diluted
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(0.04) | (0.32) | (0.53) | 0.16 | |||||
Weighted average shares outstanding:
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|||||||||
Basic
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29,975,295 | 30,294,868 | 29,084,947 | 30,250,904 | |||||
Diluted
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29,975,295 | 30,294,868 | 29,084,947 | 31,452,877 |
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June 30, 2019
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March 31, 2020
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Assets
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Cash and cash equivalents
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$
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10,359
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$
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11,743
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Trade and other receivables, net
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56,204
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47,003
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Inventories
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29,077
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25,509
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Prepaid expenses and other
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9,823
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10,953
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Property, plant and equipment, net
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22,895
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24,501
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Lease fleet, net
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456,822
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449,726
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Operating lease assets
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—
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63,759
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Goodwill
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111,323
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108,592
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Other intangible assets, net
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21,809
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19,666
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Total assets
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$
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718,312
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$
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761,452
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Liabilities
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Trade payables and accrued liabilities
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$
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48,460
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$
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41,295
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Income taxes payable
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506
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696
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Unearned revenue and advance payments
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22,671
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24,358
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Operating lease liabilities
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—
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64,395
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Senior and other debt, net
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411,141
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378,297
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Fair value of bifurcated derivatives in Convertible Note
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19,782
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26,147
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Deferred tax liabilities
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38,711
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46,725
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Total liabilities
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541,271
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581,913
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Commitments and contingencies
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—
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—
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Equity
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Cumulative preferred stock, $.0001 par value: 1,000,000 shares authorized; 400,100 shares issued and outstanding (in series)
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40,100
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40,100
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Common stock, $.0001 par value: 100,000,000 shares authorized; 30,471,406 shares issued and outstanding at June 30, 2019 and 30,625,781 at March 31, 2020, respectively
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3
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3
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Additional paid-in capital
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183,933
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183,282
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Accumulated other comprehensive loss
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(18,755)
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(23,373)
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Accumulated deficit
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(28,744)
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(20,977)
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Total General Finance Corporation stockholders’ equity
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176,537
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179,035
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Equity of noncontrolling interests
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504
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504
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Total equity
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177,041
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179,539
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Total liabilities and equity
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$
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718,312
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$
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761,452
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Quarter Ended March 31,
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Nine Months Ended March 31,
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2019
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2020
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2019
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2020
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Net income (loss)
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$ (332)
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$
(8,625)
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$
(12,702)
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$
7,767
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Add (deduct) —
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Provision for income taxes
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1,429
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3,715
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5,056
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9,969
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Change in valuation of bifurcated derivatives in
Convertible Note
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1,131
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11,259
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22,829
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6,365
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Foreign exchange and other
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3
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2,096
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3,296
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2,405
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Interest expense
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10,207
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5,981
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27,700
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20,235
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Interest income
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(27)
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(153)
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(108)
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(519)
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Depreciation and amortization
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10,998
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8,712
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32,256
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26,930
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Share-based compensation expense
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655
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647
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1,996
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2,015
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Refinancing costs not capitalized
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58
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--
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506
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--
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Adjusted EBITDA
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$ 24,122
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$ 23,632
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$ 80,829
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$ 75,167
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Quarter Ended March 31, 2019
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Quarter Ended March 31, 2020
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||||||
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Asia-Pacific
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North America
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Asia-Pacific
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North America
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Leasing
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Leasing
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Manufacturing
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Corporate
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Leasing
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Leasing
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Manufacturing
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Corporate
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Operating income (loss)
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$ 3,124
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$ 10,862
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$ (91)
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$ (1,596)
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$ 4,417
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$ 10,945
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$ 385
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$ (1,378)
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Add -
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Depreciation and amortization
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4,733
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6,353
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101
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4
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3,132
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5,660
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99
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3
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160
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95
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7
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393
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196
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108
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9
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334
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Refinancing costs not capitalized
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58
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-
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-
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-
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-
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-
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-
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-
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Adjusted EBITDA
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$ 8,075
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$ 17,310
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$ 17
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$ (1,199)
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$ 7,745
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$ 16,713
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$ 493
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$ (1,041)
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Intercompany adjustments
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$ (81)
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$ (278)
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Nine Months Ended March 31, 2019
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Nine Months Ended March 31, 2020
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||||||
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Asia-Pacific
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North America
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Asia-Pacific
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North America
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||||
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Leasing
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Leasing
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Manufacturing
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Corporate
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Leasing
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Leasing
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Manufacturing
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Corporate
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Operating income (loss)
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$ 8,977
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$ 40,692
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$ 518
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$ (4,520)
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$ 11,766
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$ 38,676
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$ 358
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$ (4,761)
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Add -
|
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Depreciation and amortization
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13,906
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18,608
|
304
|
16
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10,141
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17,029
|
297
|
9
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Share-based compensation Xexpense
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544
|
257
|
19
|
1,176
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|
562
|
343
|
27
|
1,083
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Refinancing costs not capitalized
|
58
|
448
|
-
|
-
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-
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-
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-
|
-
|
Adjusted EBITDA
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$ 23,485
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$ 60,005
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$ 841
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$ (3,328)
|
|
$ 22,469
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$ 56,048
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$ 682
|
$ (3,669)
|
Intercompany adjustments
|
|
|
|
$ (174)
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|
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$ (363)
|
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