Attached files
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| 8-K - CAI INTERNATIONAL, INC. 8-K - CAI International, Inc. | a6630850.htm |
Exhibit 99.1
CAI International, Inc. Reports Results for the Fourth Quarter and Full Year of 2010.
SAN FRANCISCO--(BUSINESS WIRE)--March 1, 2011--CAI International, Inc. (CAI) (NYSE:CAP), one of the world’s leading lessors of intermodal freight containers, today reported results for the fourth quarter and full year of 2010.
Highlights for the fourth quarter and full year of 2010.
- CAI reported net income attributable to CAI common stockholders for the fourth quarter of 2010 of $0.57 per fully diluted share, a 235% increase compared to $0.17 per fully diluted share during the fourth quarter of 2009 and a 46% increase as compared to $0.39 per fully diluted share in the third quarter of 2010 (excluding the $0.11 per share related to a one time tax benefit during the third quarter of 2010).
- For the full year, CAI reported $1.56 per fully diluted share, a 105% increase compared to the $0.76 per share reported in 2009.
- Average utilization for the fourth quarter of 2010 was 98.0%, compared to the 81.9% during the fourth quarter of 2009.
- During December 2010 CAI issued approximately 1.4 million of common shares totaling proceeds of $22.4 million, net of fees and expenses.
- During December 2010 CAI entered into a $300 million, delayed draw 6 year term loan facility with a syndicate of banks and funded $185 million on the closing date.
CAI today reported net income attributable to CAI common stockholders of $10.5 million in the fourth quarter of 2010 as compared to net income attributable to CAI common stockholders of $3.1 million during the fourth quarter of 2009. Fully diluted earnings per share in the fourth quarter of 2010 was $0.57, on 18.5 million average shares outstanding, as compared to fully diluted earnings per share of $0.17 on 18.0 million average shares outstanding during the fourth quarter of 2009. For the year ended December 31, 2010, CAI reported net income attributable to CAI common stockholders of $28.4 million, or $1.56 per fully diluted share, compared to $13.6 million, or $0.76 per fully diluted share, in 2009.
Total revenue for the fourth quarter of 2010 was $25.2 million as compared to $15.3 million for the fourth quarter of 2009. Container rental revenue was $21.4 million as compared to $12.8 million in the fourth quarter of 2009. The increase in the container rental income was primarily due to a 63% increase in the average number of TEUs of owned containers on lease and a 13.5% increase in the average utilization of our owned fleet as compared to the three months ended December 31, 2009. Management fee revenue was $3.4 million as compared to $2.1 million of management fee revenue reported in the fourth quarter of 2009. Finance lease income in the fourth quarter of 2010 was unchanged at $0.4 million as compared to the fourth quarter of 2009. For the year ended December 31, 2010, total revenue was $77.9 million, which was an increase of $12.6 million, or 19%, compared to the $65.3 million for the prior year.
During December, 2010 CAI announced that it entered into a definitive agreement for a $300 million, delayed draw 6 year term loan with a syndicate of banks. On the closing date $185 million was funded and the remaining facility commitment is available for 9 months after the closing date. During the month of December CAI also issued approximately 1.4 million of common shares at $17.50 per share, raising $22.4 million of equity proceeds, net of fees and expenses.
Masaaki (John) Nishibori, CEO of CAI, commented, “2010 was a tremendous year for our company. The container investments we made in the third and fourth quarters allowed us to report net income of $19.7 million during the second half of the year, which represents 69% of our net income for the full year. We are optimistic about the industry conditions going into 2011 and thus we decided during the fourth quarter to raise additional debt and equity in order to meet our customers expected container equipment needs. Our fleet in the fourth quarter was effectively fully utilized and utilization has held up during the first quarter.”
He continued, “During 2010, we significantly expanded our owned fleet by 48% and that fleet growth was deployed on long term leases that will contribute to revenue and net income in 2011 and beyond. Demand for containers is being driven primarily by increased trade activity around the globe. Clarkson Research, a shipping industry research firm, in February was forecasting world containerized trade growth of 9.7% in 2011.
We have expanded our fleet already this year and expect continued strong investment in containers during the remainder of 2011. The first quarter is typically the slowest quarter of the year. Although our utilization remains high, we expect the revenue impact of additional assets in our fleet to mostly occur beginning in the second quarter of 2011. The second quarter is when most shipping companies are reserving new equipment for leases. We expect utilization to remain strong through at least the third quarter of 2011 since demand historically is higher during the second and third quarters of the year.”
| CAI International, Inc. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (In thousands, except share information) | ||||||||
| December 31, | December 31, | |||||||
| ASSETS | 2010 | 2009 | ||||||
| Cash | $ | 14,393 | $ | 14,492 | ||||
|
Accounts receivable (owned fleet), net of allowance for doubtful |
20,874 | 14,412 | ||||||
| Accounts receivable (managed fleet) | 19,496 | 18,953 | ||||||
| Current portion of direct finance leases | 3,948 | 6,776 | ||||||
| Prepaid expenses | 6,645 | 3,077 | ||||||
| Deferred tax assets | 1,931 | 1,669 | ||||||
| Other current assets | 1,364 | 4,000 | ||||||
| Total current assets | 68,651 | 63,379 | ||||||
|
Container rental equipment, net of accumulated depreciation of $
85,596 and |
528,845 | 299,340 | ||||||
| Net investment in direct finance leases | 7,886 | 5,844 | ||||||
|
Furniture, fixtures and equipment, net of accumulated depreciation
of |
2,383 | 435 | ||||||
|
Intangible assets, net of accumulated amortization of $5,982 and
$4,656 |
3,593 | 5,085 | ||||||
| Total assets | $ | 611,358 | $ | 374,083 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Accounts payable | $ | 2,411 | $ | 8,030 | ||||
| Accrued expenses and other current liabilities | 5,408 | 3,638 | ||||||
| Due to container investors | 23,283 | 17,285 | ||||||
| Unearned revenue | 5,724 | 4,225 | ||||||
| Current portion of term loans | 24,800 | 800 | ||||||
|
Current portion of capital lease obligations |
4,438 | 3,813 | ||||||
| Rental equipment payable | 86,003 | 660 | ||||||
| Total current liabilities | 152,067 | 38,451 | ||||||
| Revolving credit facility | 51,600 | 152,500 | ||||||
| Term loans | 169,200 | 9,000 | ||||||
| Deferred income tax liability | 30,226 | 26,606 | ||||||
|
Capital lease obligations |
10,509 | 16,282 | ||||||
| Income taxes payable | 82 | 2,146 | ||||||
| Total liabilities | 413,684 | 244,985 | ||||||
| Stockholders' equity: | ||||||||
|
Common stock, par value $.0001 per share; authorized 84,000,000
shares; issued and outstanding, |
2 | 2 | ||||||
| Additional paid-in capital | 127,064 | 103,684 | ||||||
| Accumulated other comprehensive loss | (2,510 | ) | (1,248 | ) | ||||
| Retained earnings | 55,043 | 26,660 | ||||||
| Total CAI stockholders' equity | 179,599 | 129,098 | ||||||
| Non-controlling interest | 18,075 | - | ||||||
| Total stockholders' equity | 197,674 | 129,098 | ||||||
| Total liabilities and stockholders' equity | $ | 611,358 | $ | 374,083 | ||||
| CAI International, Inc. | ||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenue: | ||||||||||||||||
| Container rental revenue | $ | 21,390 | $ | 12,765 | $ | 64,892 | $ | 53,747 | ||||||||
| Management fee revenue | 3,387 | 2,137 | 10,348 | 8,546 | ||||||||||||
| Gain on sale of container portfolios | - | - | 614 | 753 | ||||||||||||
| Finance lease income | 447 | 416 | 2,045 | 2,218 | ||||||||||||
| Total revenue | 25,224 | 15,318 | 77,899 | 65,264 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Depreciation of container rental equipment | 6,690 | 4,282 | 20,767 | 17,140 | ||||||||||||
| Amortization of intangible assets | 343 | 359 | 1,377 | 1,566 | ||||||||||||
| Impairment of container rental equipment | - | 6 | 40 | 86 | ||||||||||||
| Gain on disposition of used container equipment | (3,352 | ) | (1,235 | ) | (9,112 | ) | (3,626 | ) | ||||||||
| Storage, handling and other expenses | 1,229 | 2,350 | 6,170 | 8,717 | ||||||||||||
| Marketing, general and administrative expense | 5,766 | 4,434 | 21,218 | 18,848 | ||||||||||||
| Restructuring charges | - | 707 | - | 972 | ||||||||||||
| Loss (gain) on foreign exchange | (14 | ) | (62 | ) | 513 | (215 | ) | |||||||||
| Total operating expenses | 10,662 | 10,841 | 40,973 | 43,488 | ||||||||||||
| Operating income | 14,562 | 4,477 | 36,926 | 21,776 | ||||||||||||
| Interest expense | 2,016 | 967 | 5,278 | 4,311 | ||||||||||||
| Interest income | 12 | (2 | ) | (109 | ) | (10 | ) | |||||||||
| Net interest expense | 2,028 | 965 | 5,169 | 4,301 | ||||||||||||
| Net income before income taxes and non-controlling interest | 12,534 | 3,512 | 31,757 | 17,475 | ||||||||||||
| Income tax expense | 2,267 | 438 | 3,555 | 3,919 | ||||||||||||
| Net income | 10,267 | 3,074 | 28,202 | 13,556 | ||||||||||||
| Add: Net loss attributable to non-controlling interest | 230 | - | 181 | - | ||||||||||||
| Net income available to CAI common stockholders | $ | 10,497 | $ | 3,074 | $ | 28,383 | $ | 13,556 | ||||||||
|
Net income per share available to CAI common stockholders: |
||||||||||||||||
| Basic | $ | 0.58 | $ | 0.17 | $ | 1.58 | $ | 0.76 | ||||||||
| Diluted | $ | 0.57 | $ | 0.17 | $ | 1.56 | $ | 0.76 | ||||||||
|
Weighted average shares outstanding: |
||||||||||||||||
| Basic | 18,165 | 17,906 | 17,974 | 17,902 | ||||||||||||
| Diluted | 18,506 | 17,950 | 18,203 | 17,902 | ||||||||||||
|
As of December 31, |
As of December 31, |
|||
| (unaudited) | ||||
| Managed fleet in TEUs | 478,608 | 507,681 | ||
| Owned fleet in TEUs | 347,973 | 235,082 | ||
| Total | 826,581 | 742,763 | ||
Conference Call
A conference call to discuss financial results for the fourth quarter of 2010 and full year will be held on Tuesday, March 1, 2011 at 5:00 p.m. ET. The dial-in number for the teleconference is 1-877-303-9148; outside of the U.S., call 1-760-536-5211. The call may be accessed live over the internet (listen only) under the “Investors” tab of CAI’s website, www.capps.com, by selecting “Q4 2010 Earnings Conference Call.” A webcast replay will be available for 30 days on the “Investors” tab of our website.
About CAI International, Inc.
CAI is one of the world’s leading managers and lessors of intermodal freight containers. As of December 31, 2010, the company operated a worldwide fleet of approximately 827,000 TEUs of containers through 12 offices located in 10 countries including the United States.
This press release contains forward-looking statements regarding future events and the future performance of CAI International, Inc. These statements are forward looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and involve risks and uncertainties that could cause actual results of operations and other performance measures to differ materially from current expectations including, but not limited to, utilization rates, expected economic conditions, availability of credit on commercially favorable terms or at all, customer demand, container investment levels, container prices, lease rates, increased competition, volatility in exchange rates, and others. CAI refers you to the documents that it has filed with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2009 and its interim reports on Form 10-Q and its reports on Form 8-K. These documents contain additional important factors that could cause actual results to differ from current expectations and from forward-looking statements contained in this press release. Furthermore, CAI is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements contained in this press release whether as a result of new information, future events or otherwise, unless required by law.
CONTACT:
CAI International, Inc.
Victor Garcia, 415-788-0100
Chief
Operating Officer
vgarcia@capps.com