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CAI International, Inc. Reports Record Results For The Second Quarter Of 2012 – Revenue Increases 38%, EPS Increases 40% Vs Second Quarter 2011

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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.”

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