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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

Stocks in this article: CAP

Mr. Garcia added, “We are also pleased to announce the progress we have made in our rail business. During the quarter, we finalized an $85 million revolving credit facility for our rail business, part of which we used to purchase approximately 1,200 railcars across various equipment types. We believe that the cost and returns from the railcar purchases were made at attractive prices. CAI is well on its way to building a strong reputation as a reliable participant in this market. We enter the second half of the year with good momentum in both the rail and container leasing businesses and are optimistic about continued growth and earnings potential in both.”

CAI International, Inc.
Consolidated Balance Sheets
(In thousands, except share information)
(UNAUDITED)
   
June 30, December 31,
  2012     2011  
Assets
Current assets
Cash $ 23,151 $ 14,078

Accounts receivable (owned fleet), net of allowance for doubtful accounts of $658 and $819 at June 30, 2012 and December 31, 2011, respectively

25,382 26,381
Accounts receivable (managed fleet) 21,390 19,054
Current portion of direct finance leases 8,782 6,158
Prepaid expenses 7,521 7,079
Deferred tax assets 1,969 1,968
Other current assets   250     185  
Total current assets 88,445 74,903
Restricted cash 1,142 599

Rental equipment, net of accumulated depreciation of $124,666 and $109,336 at June 30, 2012 and December 31, 2011, respectively

1,024,756 841,847
Net investment in direct finance leases 53,785 31,591

Furniture, fixtures and equipment, net of accumulated depreciation of $1,072 and $1,006 at June 30, 2012 and December 31, 2011, respectively

1,969 2,095

Intangible assets, net of accumulated amortization of $6,940 and $6,519 at June 30, 2012 and December 31, 2011, respectively

  1,860     2,333  
Total assets $ 1,171,957   $ 953,368  
 
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 5,554 $ 3,536
Accrued expenses and other current liabilities 7,927 5,761
Due to container investors 20,105 20,113
Unearned revenue 7,606 6,786
Current portion of term loans 30,887 25,764
Current portion of capital lease obligations 2,867 3,792
Current portion of collateralized financing obligations 2,000
Rental equipment payable   70,667     13,301  
Total current liabilities 147,613 79,053
Revolving credit facilities 255,633 261,000
Term loans 325,010 263,014
Asset backed warehouse facility 100,000 51,000
Deferred income tax liability 33,868 33,816
Capital lease obligations 5,877 16,480
Collateralized financing obligations 24,776
Income taxes payable   269     269  
Total liabilities   893,046     704,632  
 
Stockholders' equity

Common stock: par value $.0001 per share; authorized 84,000,000 shares; issued and outstanding 19,295,359 shares at June 30, 2012 and December 31, 2011, respectively

2 2
Additional paid-in capital 128,788 128,183
Accumulated other comprehensive loss (3,915 ) (3,381 )
Retained earnings   134,758     105,232  
Total CAI stockholders' equity 259,633 230,036
Non-controlling interest   19,278     18,700  
Total stockholders' equity   278,911     248,736  
Total liabilities and stockholders' equity $ 1,171,957   $ 953,368  

CAI International, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(UNAUDITED)
       
Three Months Ended Six Months Ended
June 30, June 30,
  2012     2011     2012     2011  
Revenue
Rental revenue $ 35,101 $ 24,711 $ 67,588 $ 47,096
Management fee revenue 3,006 3,275 7,207 6,790
Gain on sale of container portfolios - 253 1,256 1,663
Finance lease income   1,618     520     3,081     952  
Total revenue   39,725     28,759     79,132     56,501  
 
Operating expenses
Depreciation of rental equipment 11,053 7,441 21,711 14,182
Amortization of intangible assets 225 343 452 686
Gain on disposition of used rental equipment (3,225 ) (2,785 ) (6,320 ) (6,400 )
Storage, handling and other expenses 1,762 1,360 3,768 2,455
Marketing, general and administrative expenses 5,812 5,517 12,335 10,119
(Gain) loss on foreign exchange   (264 )   (37 )   (68 )   23  
Total operating expenses   15,363     11,839     31,878     21,065  
 
Operating income   24,362     16,920     47,254     35,436  
 
Interest expense 6,320 3,529 12,256 6,503
Interest income   (2 )   (1 )   (7 )   (4 )
Net interest expense   6,318     3,528     12,249     6,499  
 
Net income before income taxes and non-controlling interest 18,044 13,392 35,005 28,937
Income tax expense   2,396     2,301     4,901     4,851  
 
Net income 15,648 11,091 30,104 24,086
Net income attributable to non-controlling interest   (513 )   (211 )   (578 )   (410 )
Net income attributable to CAI common stockholders $ 15,135   $ 10,880   $ 29,526   $ 23,676  
 
 
Net income per share attributable to
CAI common stockholders
Basic $ 0.78 $ 0.56 $ 1.53 $ 1.23
Diluted $ 0.77 $ 0.55 $ 1.50 $ 1.20
 
Weighted average shares outstanding
Basic 19,295 19,295 19,295 19,295
Diluted 19,719 19,798 19,712 19,779

CAI International, Inc.
Fleet Data
(UNAUDITED)
   
As of June 30,
2012 2011
 
Owned container fleet in TEUs 560,570 415,260
Managed container fleet in TEUs 446,213 468,598
Total container fleet in TEUs 1,006,783 883,858
 
 
 
Owned railcar fleet in units 1,177 -




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