This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

CAI International, Inc. Reports Record Results For The Second Quarter Of 2012 – Revenue Increases 38%, EPS Increases 40% Vs Second Quarter 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.”

2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs