CAI International, Inc. Reports Results for the Third Quarter of 2009
Business Wire- 11/5/2009 4:00:00 PM EST
CAI International, Inc. Reports Results for the Third Quarter of 2009
( BW)(CA-CAI-INTERNATIONAL)(CAP.NYSE) CAI International, Inc. Reports Results for the Third Quarter of 2009
CAI International, Inc. (CAI) (NYSE: CAP) today reported net income of
$3.2 million in the third quarter of 2009 as compared with net income of
$5.9 million in the third quarter of 2008. Fully diluted earnings per
share in the third quarter of 2009 were $0.18 with 17.9 million average
shares outstanding, compared to fully diluted earnings per share of
$0.34 with 17.5 million average shares outstanding during the third
quarter of 2008.
Total revenue for the third quarter of 2009 was $15.7 million as
compared to the $22.1 million for third quarter of 2008. Container
rental revenue was $13.4 million compared to $16.4 million in the third
quarter of 2008. Management fee revenue was $1.8 million compared to
$3.0 million of management fee revenue reported in the third quarter of
2008. There was no gain on sale of container portfolios this past
quarter, compared to $2.2 million in the third quarter of 2008. Finance
lease income in the third quarter of 2009 was $0.5 million compared to
finance lease income of $0.6 million reported in the third quarter of
2008.
Masaaki (John) Nishibori, CEO of CAI, commented, “During the third
quarter we experienced increased demand for containers. In part, the
increase was due to the seasonal increase in demand during this time of
year. In addition we believe that our customers are experiencing
increased volumes of cargo as the world economies improve, particularly
in Asia and Europe.
We witnessed stabilization of our utilization rate during the third
quarter which averaged 80% for the quarter. Utilization was lowest
during August and improved moderately over the course of September.
Utilization has continued to improve over the course of October and was
81.2% as of November 1, 2009.
We believe there will be continued improvement in the demand for
container equipment through the end of this year. We are seeing more
customers demanding equipment under short term, as well as long term
lease agreements. Demand for equipment has been the strongest in China
and we see demand increasing in other regions around Asia, such as in
South Korea. Results for this quarter benefited from the purchase of a
$10 million equipment portfolio from one of our container investors
during the quarter.”
He continued, “During the third quarter we entered into a $10 million,
five-year term loan facility with the Development Bank of Japan (DBJ).
We entered into this agreement to broaden our financing sources as we
prepare for increased container investment in 2010. DBJ is a 9.4%
shareholder in our company and we are pleased with their continued
support and interest in the growth and development of CAI.
The price on the disposition of older container equipment has remained
stable across most regions, as compared to the second quarter of this
year. Volumes have also improved as more secondary buyers sought to
purchase more containers.
As we indicated in the last quarter, the improvements in utilization of
containers remain moderate by historical standards and in part relate to
the seasonal patterns in our business. However, we believe that demand
has stabilized and are optimistic that demand will increase more
significantly as we approach the second quarter of 2010. Our view is
based on our expectation of continued lack of new container
manufacturing through the end of 2009 and first quarter of 2010, the
ongoing attrition in the worldwide fleet and the recovery of the
worldwide economies in 2010. Although credit remains one of our main
focuses, many of our major customers continue to seek solutions to their
liquidity and capital needs, which better enables them to manage through
the weak freight rate environment”.
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CAI International, Inc.
|
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Consolidated Balance Sheets
|
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(In thousands, except share information)
|
|
(UNAUDITED)
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
ASSETS
|
|
|
2009
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
8,425
|
|
|
$
|
28,535
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|
|
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Accounts receivable (owned fleet), net of allowance for doubtful
accounts
of $1,241 and $1,044 at September 30, 2009 and
December 31,
2008, respectively
|
|
|
14,666
|
|
|
|
16,224
|
|
|
|
Accounts receivable (managed fleet)
|
|
|
21,507
|
|
|
|
24,683
|
|
|
|
Current portion of direct finance leases
|
|
|
5,458
|
|
|
|
6,108
|
|
|
|
Prepaid expenses
|
|
|
4,393
|
|
|
|
2,954
|
|
|
|
Deferred tax assets
|
|
|
2,705
|
|
|
|
1,924
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|
|
|
Other current assets
|
|
|
4,825
|
|
|
|
563
|
|
|
|
Total current assets
|
|
|
61,979
|
|
|
|
80,991
|
|
|
|
Container rental equipment, net of accumulated depreciation
of
$82,720 and $86,936 at September 30, 2009 and December 31,
2008,
respectively
|
|
|
308,679
|
|
|
|
310,397
|
|
|
|
Net investment in direct finance leases
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|
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8,437
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|
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14,003
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|
|
|
|
|
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|
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Furniture, fixtures and equipment, net of accumulated
depreciation
of $886 and $722 at September 30, 2009 and
December 31, 2008,
respectively
|
|
|
511
|
|
|
|
629
|
|
|
|
|
|
|
|
|
|
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Intangible assets, net of accumulated amortization of $4,310
and
$3,081 at September 30, 2009 and December 31, 2008, respectively
|
|
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5,471
|
|
|
|
6,608
|
|
|
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Total assets
|
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$
|
385,077
|
|
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$
|
412,628
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|
|
|
|
|
|
|
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LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
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Accounts payable
|
|
$
|
8,549
|
|
|
$
|
4,682
|
|
|
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Accrued expenses and other current liabilities
|
|
|
2,990
|
|
|
|
3,747
|
|
|
|
Due to container investors
|
|
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17,111
|
|
|
|
23,847
|
|
|
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Unearned revenue
|
|
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4,668
|
|
|
|
4,542
|
|
|
|
Current portion of related party term loan
|
|
|
800
|
|
|
|
-
|
|
|
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Current portion of capital lease obligation
|
|
|
4,101
|
|
|
|
4,514
|
|
|
|
Rental equipment payable
|
|
|
734
|
|
|
|
3,905
|
|
|
|
Total current liabilities
|
|
|
38,953
|
|
|
|
45,237
|
|
|
|
Revolving credit facility
|
|
|
165,500
|
|
|
|
208,200
|
|
|
|
Related party term loan
|
|
|
9,200
|
|
|
|
-
|
|
|
|
Deferred income tax liability
|
|
|
25,769
|
|
|
|
25,348
|
|
|
|
Capital lease obligation
|
|
|
17,498
|
|
|
|
18,070
|
|
|
|
Income taxes payable
|
|
|
2,157
|
|
|
|
1,983
|
|
|
|
Total liabilities
|
|
|
259,077
|
|
|
|
298,838
|
|
|
|
|
|
|
|
|
|
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Stockholders' equity:
|
|
|
|
|
|
|
Common stock, par value $.0001 per share ; authorized 84,000,000
shares;
issued and outstanding, 17,917,176 shares and
17,920,778
shares at September 30, 2009, and December 31,
2008, respectively
|
|
|
2
|
|
|
|
2
|
|
|
|
Additional paid-in capital
|
|
|
103,416
|
|
|
|
102,706
|
|
|
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Accumulated other comprehensive loss
|
|
|
(1,004
|
)
|
|
|
(2,022
|
)
|
|
|
Retained earnings
|
|
|
23,586
|
|
|
|
13,104
|
|
|
|
Total stockholders' equity
|
|
|
126,000
|
|
|
|
113,790
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
385,077
|
|
|
$
|
412,628
|
|
|
|
|
|
|
|
|
|
CAI International, Inc.
|
|
Consolidated Statements of Income
|
|
(In thousands, except per share data)
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Container rental revenue
|
$
|
13,406
|
|
|
$
|
16,353
|
|
|
$
|
40,982
|
|
|
$
|
41,621
|
|
|
|
|
Management fee revenue
|
|
1,815
|
|
|
|
2,991
|
|
|
|
6,409
|
|
|
|
8,931
|
|
|
|
|
Gain on sale of container portfolios
|
|
-
|
|
|
|
2,158
|
|
|
|
753
|
|
|
|
8,375
|
|
|
|
|
Finance lease income
|
|
488
|
|
|
|
622
|
|
|
|
1,802
|
|
|
|
1,490
|
|
|
|
|
|
Total revenue
|
|
15,709
|
|
|
|
22,124
|
|
|
|
49,946
|
|
|
|
60,417
|
|
|
|
|
|
|
|
|
|
|
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|
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Operating expenses:
|
|
|
|
|
|
|
|
|
|
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Depreciation of container rental equipment
|
|
4,265
|
|
|
|
4,493
|
|
|
|
12,858
|
|
|
|
11,225
|
|
|
|
|
Amortization of intangible assets
|
|
399
|
|
|
|
422
|
|
|
|
1,207
|
|
|
|
1,123
|
|
|
|
|
Impairment of container rental equipment
|
|
19
|
|
|
|
39
|
|
|
|
80
|
|
|
|
241
|
|
|
|
|
Gain on disposition of used container equipment
|
|
(990
|
)
|
|
|
(949
|
)
|
|
|
(2,391
|
)
|
|
|
(3,243
|
)
|
|
|
|
Storage, handling and other expenses
|
|
2,231
|
|
|
|
984
|
|
|
|
6,367
|
|
|
|
3,228
|
|
|
|
|
Marketing, general and administrative expense
|
|
4,987
|
|
|
|
5,124
|
|
|
|
14,679
|
|
|
|
14,740
|
|
|
|
|
(Gain) loss on foreign exchange
|
|
(150
|
)
|
|
|
544
|
|
|
|
(153
|
)
|
|
|
449
|
|
|
|
|
|
Total operating expenses
|
|
10,761
|
|
|
|
10,657
|
|
|
|
32,647
|
|
|
|
27,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
4,948
|
|
|
|
11,467
|
|
|
|
17,299
|
|
|
|
32,654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
992
|
|
|
|
2,435
|
|
|
|
3,344
|
|
|
|
6,538
|
|
|
|
Interest income
|
|
(1
|
)
|
|
|
(38
|
)
|
|
|
(8
|
)
|
|
|
(208
|
)
|
|
|
|
|
Net interest expense
|
|
991
|
|
|
|
2,397
|
|
|
|
3,336
|
|
|
|
6,330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
3,957
|
|
|
|
9,070
|
|
|
|
13,963
|
|
|
|
26,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
763
|
|
|
|
3,181
|
|
|
|
3,481
|
|
|
|
8,882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
3,194
|
|
|
$
|
5,889
|
|
|
$
|
10,482
|
|
|
$
|
17,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.18
|
|
|
$
|
0.34
|
|
|
$
|
0.59
|
|
|
$
|
1.01
|
|
|
|
|
|
Diluted
|
$
|
0.18
|
|
|
$
|
0.34
|
|
|
$
|
0.59
|
|
|
$
|
1.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding :
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
17,905
|
|
|
|
17,499
|
|
|
|
17,901
|
|
|
|
17,241
|
|
|
|
|
|
Diluted
|
|
17,905
|
|
|
|
17,505
|
|
|
|
17,901
|
|
|
|
17,246
|
|
|
|
As of September 30,
2009
|
|
|
As of September 30,
2008
|
|
|
(unaudited)
|
|
Managed fleet in TEUs
|
511,753
|
|
|
533,888
|
|
Owned fleet in TEUs
|
244,416
|
|
|
268,495
|
|
|
|
|
|
|
|
Total
|
756,169
|
|
|
802,383
|
Conference Call
A conference call to discuss financial results for the third quarter of
2009 will be held on Thursday, November 5, 2009 at 5:00 p.m. EDT. The
dial-in number for the teleconference is 1-888-504-7953; outside of the
U.S., call 1-719-325-2481. The call may be accessed live over the
internet (listen only) under the “Investors” tab of CAI’s website, www.caiintl.com,
by selecting “Q3 2009 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 September 30, 2009, the company operated a
worldwide fleet of 756,000 TEU of containers through 13 offices located
in 11 countries.
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 (including utilization rates)
to differ materially from current expectations including, but not
limited to, expected economic conditions, availability of credit on
commercially favorable terms or at all, customer demand, 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, 2008 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
Financial Officer
vgarcia@caiintl.com
KEYWORDS: United States North America California
INDUSTRY KEYWORDS: Transport Maritime Logistics/Supply Chain Management
© Copyright 2005 Business Wire. All rights reserved.
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