CAI International, Inc. Reports Record Results For The Fourth Quarter And Full Year Of 2011

Total revenue for the year ended December 31, 2011 was $125.7 million, compared to $77.9 million in 2010, an increase of 61%. Container rental revenue for the year ended December 31, 2011 was $106.7 million, compared to $64.9 million in 2010, an increase of 64%. The increase in container rental revenue was primarily due to a 39% increase in the average number of TEUs of owned containers on lease and a 20% increase in the average owned fleet per diem rates compared to 2010. Management fee revenue for the year ended December 31, 2011 was $13.0 million, compared to $10.3 million for 2010. Gain on sale of container portfolios for the year ended December 31, 2011 was $2.3 million, compared to $0.6 million for 2010. Finance lease income for the year ended December 31, 2011 increased to $3.7 million, from $2.0 million in 2010.

Victor Garcia, Chief Executive Officer of CAI, commented, “2011 was an excellent year for our company. We achieved strong revenue and earnings growth throughout the year, generating $50.2 million of net income, a 77% increase compared to 2010. As a result of continued growth in global containerized trade, we took delivery of more than $415 million of equipment during the year, a record level for CAI. Most of this investment in equipment has already been placed on long term leases at per diem rates that are significantly higher than in 2010. Our utilization for the year averaged 97.6% and we finished the year with utilization of 95.3%.”

Mr. Garcia continued, “We are optimistic in regards to the 2012 prospects for the container leasing industry in general and for CAI in particular. We expect demand for containers to increase during the second quarter of 2012, leading to an improvement in the utilization of our existing fleet and an increase in demand for the leasing of newly built containers. Our outlook is based on our expectation that 2012 will be another year of containerized trade growth; Clarkson’s Research January forecast for 2012 containerized trade is for 8% growth, a level comparable to that in 2011. The expected growth in trade, the current high utilization level of lessor fleets, the limited level of container production since mid-2011 and our belief that many shipping companies will have limited budgets for container purchases in the coming year are all factors that we believe will lead to a strong market for our continued investment in new containers which will result in continued growth for our company.”

CAI International, Inc.
Consolidated Balance Sheets
(In thousands, except share information)
(UNAUDITED)
	December 31,					December 31,
	2011					2010
Assets
Current assets
Cash	$	14,078				$	14,393
Accounts receivable (owned fleet), net of allowance for doubtfulaccounts of $819 and $2,182 at December 31, 2011 and 2010, respectively		26,381					20,874
Accounts receivable (managed fleet)		19,054					19,496
Current portion of direct finance leases		6,158					3,948
Prepaid expenses		7,079					6,645
Deferred tax assets		1,968					1,931
Other current assets		185					1,364
Total current assets		74,903					68,651
Restricted cash		599					-
Container rental equipment, net of accumulated depreciation of $109,336and $85,596 at December 31, 2011 and 2010, respectively		841,847					530,939
Net investment in direct finance leases		31,591					7,886
Furniture, fixtures and equipment, net of accumulated depreciation of$1,006 and $548 at December 31, 2011 and 2010, respectively		2,095					2,383
Intangible assets, net of accumulated amortization of $7,196 and $5,982at December 31, 2011 and 2010, respectively		2,333					3,593
Total assets	$	953,368				$	613,452
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	3,536				$	2,411
Accrued expenses and other current liabilities		5,761					5,408
Due to container investors		20,113					23,283
Unearned revenue		6,786					5,724
Current portion of term loans		25,764					24,800
Current portion of capital lease obligations		3,792					4,438
Rental equipment payable		13,301					88,097
Total current liabilities		79,053					154,161
Revolving credit facility		261,000					51,600
Term loans		263,014					169,200
Asset backed warehouse facility		51,000					-
Deferred income tax liability		33,816					30,226
Capital lease obligations		16,480					10,509
Income taxes payable		269					82
Total liabilities		704,632					415,778
Stockholders' equity
Common stock: par value $.0001 per share; authorized 84,000,000 shares; issuedand outstanding 19,295,359 shares at December 31, 2011 and 2010		2					2
Additional paid-in capital		128,183					127,064
Accumulated other comprehensive loss		(3,381	)				(2,510	)
Retained earnings		105,232					55,043
Total CAI stockholders' equity		230,036					179,599
Non-controlling interest		18,700					18,075
Total stockholders' equity		248,736					197,674
Total liabilities and stockholders' equity	$	953,368				$	613,452

CAI International, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(UNAUDITED)
	Three Months Ended December 31,									Year Ended December 31,
		2011				2010					2011				2010
Revenue
Container rental revenue	$	32,005			$	21,390				$	106,694			$	64,892
Management fee revenue		3,102				3,387					12,957				10,348
Gain on sale of container portfolios		-				-					2,345				614
Finance lease income		1,136				447					3,710				2,045
Total revenue		36,243				25,224					125,706				77,899
Operating expenses
Depreciation of container rental equipment		10,907				6,690					33,633				20,807
Amortization of intangible assets		229				343					1,254				1,377
Gain on disposition of used container equipment		(3,223	)			(3,352	)				(13,374	)			(9,112	)
Storage, handling and other expenses		1,994				1,229					5,513				6,170
Marketing, general and administrative expenses		5,573				5,766					21,009				21,218
(Gain) loss on foreign exchange		(138	)			(14	)				(354	)			513
Total operating expenses		15,342				10,662					47,681				40,973
Operating income		20,901				14,562					78,025				36,926
Interest expense		5,336				2,016					16,139				5,278
Interest income		(6	)			12					(12	)			(109	)
Net interest expense		5,330				2,028					16,127				5,169
Net income before income taxes and non-controlling interest		15,571				12,534					61,898				31,757
Income tax expense		2,648				2,267					11,084				3,555
Net income		12,923				10,267					50,814				28,202
Net (income) loss attributable to non-controlling interest		(32	)			230					(625	)			181
Net income attributable to CAI common stockholders	$	12,891			$	10,497				$	50,189			$	28,383
Net income per share attributable to
CAI common stockholders
Basic	$	0.67			$	0.58				$	2.60			$	1.58
Diluted	$	0.66			$	0.57				$	2.55			$	1.56
Weighted average shares outstanding
Basic		19,295				18,165					19,295				17,974
Diluted		19,564				18,506					19,693				18,203

CAI International, Inc.
Fleet Data
(UNAUDITED)
			As of December 31,
			2011		2010
Managed fleet in TEUs			458,254		478,608
Owned fleet in TEUs			470,401		347,973
Total			928,655		826,581

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