This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

CAI International's CEO Discusses Second Quarter Results - Earnings Call Transcript

Stocks in this article: CAP

I will now turn the call over to our President and Chief Executive Officer, Victor Garcia.

Victor Garcia

Thanks, Tim. Good afternoon. We are very pleased with our second quarter and half year results and we continue to be optimistic about the outlook for container demand for the remainder of 2012 and for container demand in 2013 which we are viewing as a global economic recovery year.

With the results just reported we continue to bring great economic value to our shareholders as we place capital to work by taking full advantage of our market reputation and knowledge of the business.

Through the end of the second quarter we have invested over $350 million in equipment of which $310 million have been on containers.

Based on the investments we have made on the first half of this year we expect our overall investment in containers in 2012 to be above the amount invested last year, which was a record level of investment at that time.

This quarter we had earnings of $0.77 per fully diluted share, which represents a 40% increase from the fully diluted earnings per share during the same quarter in 2011.

Revenue over that same period increased 38%. If you look at our net income through the first half of this year and annualize the results, we are reporting a return of equity of over 25% since the beginning of the year. That return on capital is real value we are bringing to our shareholders.

Similarly in 2011, we also returned over 25% on our equity. The returns we have achieved are particularly noteworthy considering the low interest rate environment that has prevailed over the last three years and that they are supported by long-term, multiyear leases on most of our equipment.

We had significant achievements this quarter that supported the results we reported. During the quarter we were able to lease out 45,000 TEU of containers. These units are primarily on multiyear, long-term leases across many of the largest shipping lines.

2 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,637.57 +280.70 1.62%
S&P 500 2,042.67 +29.78 1.48%
NASDAQ 4,714.2930 +69.9810 1.51%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs