Attached files
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| 8-K - CAI INTERNATIONAL, INC. 8-K - CAI International, Inc. | a50350465.htm |
Exhibit 99.1
CAI International, Inc. Reports Record Results for the Second Quarter of 2012 – Revenue Increases 38%, EPS Increases 40% vs Second Quarter 2011
SAN FRANCISCO--(BUSINESS WIRE)--July 23, 2012--CAI International, Inc. (CAI) (NYSE:CAP), one of the world’s leading lessors of intermodal freight containers, today reported record results for the second quarter of 2012.
Highlights for the Second Quarter of 2012
- CAI reported record net income attributable to CAI common stockholders for the second quarter of 2012 of $0.77 per fully diluted share, a 40% increase compared to $0.55 for the second quarter of 2011.
- Rental revenue for the second quarter of 2012 increased 42% compared to the second quarter of 2011.
- CAI leased out approximately 45,000 TEUs of containers during the quarter, and purchased approximately 22,000 TEUs of containers from two managed portfolios for $27 million.
- CAI’s year-to-date investment in rental equipment exceeds $350 million, of which $310 million is marine containers.
- During the quarter CAI’s container fleet reached over 1 million TEUs.
- CAI closed an $80 million term debt facility, increased its revolving credit facility commitments to $465 million notes and completed an $85 million revolving credit facility for the acquisition of railcars.
- CAI purchased approximately 1,200 railcars for $41 million, all of which are on lease with an average lease term of 3 years. The company has commitments to purchase another $10 million of railcars and expects continued investment through the end of the year.
Net income attributable to CAI common stockholders was $15.1 million for the second quarter of 2012, compared to $10.9 million for the second quarter of 2011, an increase of 39%.
Total revenue for the second quarter of 2012 was a record $39.7 million, compared to $28.8 million for the second quarter of 2011, an increase of 38%. Rental revenue for the second quarter of 2012 was $35.1 million, compared to $24.7 million for the second quarter of 2011. The increase in rental revenue was primarily due to a 42% increase in the average number of TEUs of owned containers on lease compared to the second quarter of 2011. Management fee revenue for the second quarter of 2012 was $3.0 million, compared to $3.3 million for the second quarter of 2011. CAI sold no container portfolios during the second quarter of 2012, compared to recording a gain on sale of container portfolios of $0.3 million in the second quarter of 2011. Finance lease income for the second quarter of 2012 increased to $1.6 million, from $0.5 million in the second quarter of 2011, primarily due to new finance lease contracts entered into since July 1, 2011.
Average fleet utilization increased slightly from 94.2% in the first quarter of 2012 to 94.3% in the second quarter of 2012. Based on customer bookings already in place for available assets, it is expected that utilization will improve further during the third quarter.
During the quarter, CAI completed the purchase of approximately 1,200 used railcars. The total purchase price of $40.6 million was funded primarily by the Company’s $85 million revolving credit facility that was entered into during the quarter. All railcars purchased during the quarter are on lease and are expected to positively impact CAI’s revenue in the third quarter.
Victor Garcia, Chief Executive Officer of CAI, commented, “We are very pleased with the performance of our company this quarter. We achieved strong revenue and earnings growth, generating $15.1 million of net income, a 39% increase compared to the second quarter of 2011. Utilization has increased slightly during the quarter, and we believe utilization will remain strong for the remainder of 2012, as a result of continued growth in international trade and limited container purchases by shipping lines. According to Clarkson Research’s July report, containerized trade is expected to increase 6% in 2012, led by growth in Intra Asian and Latin American regions. The worldwide leased container fleet has remained near full utilization, which we expect will result in continued strong prices in the secondary used equipment market for the remainder of 2012. As a result of recent freight rate increases imposed during the second quarter and lower fuel costs, we expect improvement in our customers’ financial performance over the course of this year and a reduction of credit risk within the shipping industry.”
Mr. Garcia continued, “During the second quarter we invested over $350 million and expect our total investment in 2012 to be above that achieved in 2011. We expect most of the investment for the remainder of the year to be in container equipment with opportunities for new containers, sale-leasebacks from shipping lines and the acquisition of assets from our managed fleet.”
Mr. Garcia added, “We are also pleased to announce the progress we have made in our rail business. During the quarter, we finalized an $85 million revolving credit facility for our rail business, part of which we used to purchase approximately 1,200 railcars across various equipment types. We believe that the cost and returns from the railcar purchases were made at attractive prices. CAI is well on its way to building a strong reputation as a reliable participant in this market. We enter the second half of the year with good momentum in both the rail and container leasing businesses and are optimistic about continued growth and earnings potential in both.”
| CAI International, Inc. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (In thousands, except share information) | ||||||||
| (UNAUDITED) | ||||||||
| June 30, | December 31, | |||||||
| 2012 | 2011 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ | 23,151 | $ | 14,078 | ||||
|
Accounts receivable (owned fleet), net of allowance for doubtful accounts of $658 and $819 at June 30, 2012 and December 31, 2011, respectively |
25,382 | 26,381 | ||||||
| Accounts receivable (managed fleet) | 21,390 | 19,054 | ||||||
| Current portion of direct finance leases | 8,782 | 6,158 | ||||||
| Prepaid expenses | 7,521 | 7,079 | ||||||
| Deferred tax assets | 1,969 | 1,968 | ||||||
| Other current assets | 250 | 185 | ||||||
| Total current assets | 88,445 | 74,903 | ||||||
| Restricted cash | 1,142 | 599 | ||||||
|
Rental equipment, net of accumulated depreciation of $124,666 and $109,336 at June 30, 2012 and December 31, 2011, respectively |
1,024,756 | 841,847 | ||||||
| Net investment in direct finance leases | 53,785 | 31,591 | ||||||
|
Furniture, fixtures and equipment, net of accumulated depreciation of $1,072 and $1,006 at June 30, 2012 and December 31, 2011, respectively |
1,969 | 2,095 | ||||||
|
Intangible assets, net of accumulated amortization of $6,940 and $6,519 at June 30, 2012 and December 31, 2011, respectively |
1,860 | 2,333 | ||||||
| Total assets | $ | 1,171,957 | $ | 953,368 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 5,554 | $ | 3,536 | ||||
| Accrued expenses and other current liabilities | 7,927 | 5,761 | ||||||
| Due to container investors | 20,105 | 20,113 | ||||||
| Unearned revenue | 7,606 | 6,786 | ||||||
| Current portion of term loans | 30,887 | 25,764 | ||||||
| Current portion of capital lease obligations | 2,867 | 3,792 | ||||||
| Current portion of collateralized financing obligations | 2,000 | |||||||
| Rental equipment payable | 70,667 | 13,301 | ||||||
| Total current liabilities | 147,613 | 79,053 | ||||||
| Revolving credit facilities | 255,633 | 261,000 | ||||||
| Term loans | 325,010 | 263,014 | ||||||
| Asset backed warehouse facility | 100,000 | 51,000 | ||||||
| Deferred income tax liability | 33,868 | 33,816 | ||||||
| Capital lease obligations | 5,877 | 16,480 | ||||||
| Collateralized financing obligations | 24,776 | |||||||
| Income taxes payable | 269 | 269 | ||||||
| Total liabilities | 893,046 | 704,632 | ||||||
| Stockholders' equity | ||||||||
|
Common stock: par value $.0001 per share; authorized 84,000,000 shares; issued and outstanding 19,295,359 shares at June 30, 2012 and December 31, 2011, respectively |
2 | 2 | ||||||
| Additional paid-in capital | 128,788 | 128,183 | ||||||
| Accumulated other comprehensive loss | (3,915 | ) | (3,381 | ) | ||||
| Retained earnings | 134,758 | 105,232 | ||||||
| Total CAI stockholders' equity | 259,633 | 230,036 | ||||||
| Non-controlling interest | 19,278 | 18,700 | ||||||
| Total stockholders' equity | 278,911 | 248,736 | ||||||
| Total liabilities and stockholders' equity | $ | 1,171,957 | $ | 953,368 | ||||
| CAI International, Inc. | ||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenue | ||||||||||||||||
| Rental revenue | $ | 35,101 | $ | 24,711 | $ | 67,588 | $ | 47,096 | ||||||||
| Management fee revenue | 3,006 | 3,275 | 7,207 | 6,790 | ||||||||||||
| Gain on sale of container portfolios | - | 253 | 1,256 | 1,663 | ||||||||||||
| Finance lease income | 1,618 | 520 | 3,081 | 952 | ||||||||||||
| Total revenue | 39,725 | 28,759 | 79,132 | 56,501 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Depreciation of rental equipment | 11,053 | 7,441 | 21,711 | 14,182 | ||||||||||||
| Amortization of intangible assets | 225 | 343 | 452 | 686 | ||||||||||||
| Gain on disposition of used rental equipment | (3,225 | ) | (2,785 | ) | (6,320 | ) | (6,400 | ) | ||||||||
| Storage, handling and other expenses | 1,762 | 1,360 | 3,768 | 2,455 | ||||||||||||
| Marketing, general and administrative expenses | 5,812 | 5,517 | 12,335 | 10,119 | ||||||||||||
| (Gain) loss on foreign exchange | (264 | ) | (37 | ) | (68 | ) | 23 | |||||||||
| Total operating expenses | 15,363 | 11,839 | 31,878 | 21,065 | ||||||||||||
| Operating income | 24,362 | 16,920 | 47,254 | 35,436 | ||||||||||||
| Interest expense | 6,320 | 3,529 | 12,256 | 6,503 | ||||||||||||
| Interest income | (2 | ) | (1 | ) | (7 | ) | (4 | ) | ||||||||
| Net interest expense | 6,318 | 3,528 | 12,249 | 6,499 | ||||||||||||
| Net income before income taxes and non-controlling interest | 18,044 | 13,392 | 35,005 | 28,937 | ||||||||||||
| Income tax expense | 2,396 | 2,301 | 4,901 | 4,851 | ||||||||||||
| Net income | 15,648 | 11,091 | 30,104 | 24,086 | ||||||||||||
| Net income attributable to non-controlling interest | (513 | ) | (211 | ) | (578 | ) | (410 | ) | ||||||||
| Net income attributable to CAI common stockholders | $ | 15,135 | $ | 10,880 | $ | 29,526 | $ | 23,676 | ||||||||
| Net income per share attributable to | ||||||||||||||||
| CAI common stockholders | ||||||||||||||||
| Basic | $ | 0.78 | $ | 0.56 | $ | 1.53 | $ | 1.23 | ||||||||
| Diluted | $ | 0.77 | $ | 0.55 | $ | 1.50 | $ | 1.20 | ||||||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 19,295 | 19,295 | 19,295 | 19,295 | ||||||||||||
| Diluted | 19,719 | 19,798 | 19,712 | 19,779 | ||||||||||||
| CAI International, Inc. | ||||
| Fleet Data | ||||
| (UNAUDITED) | ||||
| As of June 30, | ||||
| 2012 | 2011 | |||
| Owned container fleet in TEUs | 560,570 | 415,260 | ||
| Managed container fleet in TEUs | 446,213 | 468,598 | ||
| Total container fleet in TEUs | 1,006,783 | 883,858 | ||
| Owned railcar fleet in units | 1,177 | - | ||
Conference Call
A conference call to discuss the financial results for the second quarter of 2012 will be held on Monday, July 23, 2012 at 5:00 p.m. ET. The dial-in number for the teleconference is 1-888-398-8098; outside of the U.S., call 1-707-287-9363. The call may be accessed live over the internet (listen only) under the “Investors” tab of CAI’s website, www.capps.com, by selecting “Q2 2012 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 June 30, 2012, the company operated a worldwide fleet of approximately 1,007,000 TEUs of containers through 14 offices located in 11 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, growth in world trade and world container trade, 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, 2011 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.
Tim Page, 415-788-0100
Chief
Financial Officer
tpage@capps.com