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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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