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CAI International, Inc. Reports Record Results For The Third Quarter Of 2012

Stocks in this article: CAP

Mr. Garcia concluded, “On October 18, we closed a $171 million asset backed securitization credit facility. The ten year fixed rate notes were priced at 3.47% to yield 3.50%, and the transaction was viewed favorably by the market. We were very pleased with the execution of this transaction as it provides CAI with very attractive long term fixed financing and access to an expected future source of funding. On October 19, we closed a transaction we announced in July, the acquisition of the Schroeder Dritte portfolio of approximately 71,000 TEUs for a net cost of approximately $84 million. We expect this transaction to contribute approximately $1 million to net income, or $0.04 per share, in the fourth quarter.”

CAI International, Inc.
Consolidated Balance Sheets
(In thousands, except share information)
(UNAUDITED)
 
September 30, December 31,
  2012     2011  
Assets
Current assets
Cash $ 15,211 $ 14,078
Accounts receivable (owned fleet), net of allowance for doubtful accounts
of $681 and $819 at September 30, 2012 and December 31, 2011, respectively 30,421 26,381
Accounts receivable (managed fleet) 20,877 19,054
Current portion of direct finance leases 11,142 6,158
Prepaid expenses 9,385 7,079
Deferred tax assets 1,968 1,968
Other current assets   277     185  
Total current assets 89,281 74,903
Restricted cash - 599

Rental equipment, net of accumulated depreciation of $135,550 and

$109,336 at September 30, 2012 and December 31, 2011, respectively 1,120,139 841,847
Net investment in direct finance leases 72,809 31,591
Furniture, fixtures and equipment, net of accumulated depreciation of
$1,210 and $1,006 at September 30, 2012 and December 31, 2011, respectively 1,979 2,095
Intangible assets, net of accumulated amortization of $7,189 and $6,519
at September 30, 2012 and December 31, 2011, respectively   1,650     2,333  
Total assets $ 1,285,858   $ 953,368  
 
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 5,848 $ 3,536
Accrued expenses and other current liabilities 9,253 5,761
Due to container investors 20,779 20,113
Unearned revenue 8,630 6,786
Current portion of debt 39,387 25,764
Current portion of capital lease obligations 2,624 3,792
Rental equipment payable   56,867     13,301  
Total current liabilities 143,388 79,053
Debt 825,687 575,014
Deferred income tax liability 33,934 33,816
Capital lease obligations 5,385 16,480
Income taxes payable   269     269  
Total liabilities   1,008,663     704,632  
 
Stockholders' equity
Common stock: par value $.0001 per share; authorized 84,000,000 shares; issued and
outstanding 19,295,359 shares at September 30, 2012 and December 31, 2011, respectively 2 2
Additional paid-in capital 129,180 128,183
Accumulated other comprehensive loss (3,273 ) (3,381 )
Retained earnings   151,286     105,232  
Total CAI stockholders' equity 277,195 230,036
Non-controlling interest   -     18,700  
Total stockholders' equity   277,195     248,736  
Total liabilities and stockholders' equity $ 1,285,858   $ 953,368  

CAI International, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(UNAUDITED)
     
Three Months Ended Nine Months Ended
September 30, September 30,
  2012     2011     2012     2011  
Revenue
Rental revenue $ 40,473 $ 27,593 $ 108,061 $ 74,689
Management fee revenue 2,492 3,065 9,699 9,855
Gain on sale of container portfolios - 682 1,256 2,345
Finance lease income   1,974     1,622     5,055     2,574  
Total revenue   44,939     32,962     124,071     89,463  
 
Operating expenses
Depreciation of rental equipment 12,495 8,544 34,206 22,726
Amortization of intangible assets 224 339 676 1,025
Gain on disposition of used rental equipment (2,491 ) (3,751 ) (8,811 ) (10,151 )
Storage, handling and other expenses 2,197 1,064 5,965 3,519
Marketing, general and administrative expenses 6,275 5,317 18,610 15,436
Loss (gain) on foreign exchange   193     (239 )   125     (216 )
Total operating expenses   18,893     11,274     50,771     32,339  
 
Operating income   26,046     21,688     73,300     57,124  
 
Interest expense 7,179 4,300 19,435 10,803
Interest income   (1 )   (2 )   (8 )   (6 )
Net interest expense   7,178     4,298     19,427     10,797  
 
Net income before income taxes and non-controlling interest 18,868 17,390 53,873 46,327
Income tax expense   2,102     3,585     7,003     8,436  
 
Net income 16,766 13,805 46,870 37,891
Net income attributable to non-controlling interest   (238 )   (183 )   (816 )   (593 )
Net income attributable to CAI common stockholders $ 16,528   $ 13,622   $ 46,054   $ 37,298  
 
 
Net income per share attributable to
CAI common stockholders
Basic $ 0.86 $ 0.71 $ 2.39 $ 1.93
Diluted $ 0.84 $ 0.70 $ 2.33 $ 1.89
 
Weighted average shares outstanding
Basic 19,295 19,295 19,295 19,295
Diluted 19,764 19,581 19,730 19,727

CAI International, Inc.
Fleet Data
(UNAUDITED)
                     
As of September 30,
2012 2011
 
Owned container fleet in TEUs 616,257 425,438
Managed container fleet in TEUs 444,906 476,141
Total container fleet in TEUs 1,061,163 901,579
 
Owned railcar fleet in units 1,393 -

Conference Call

A conference call to discuss the financial results for the third quarter of 2012 will be held on Monday, October 22, 2012 at 5:00 p.m. ET. The dial-in number for the teleconference is 1-888-398-8098; outside of the U.S., call 1-707-287-9363. The call may be accessed live over the Internet (listen only) under the “Investors” tab of CAI’s website, www.capps.com, by selecting “Q3 2012 Earnings Conference Call.” A webcast replay will be available for 30 days on the “Investors” tab of our website.

About CAI International, Inc.

CAI is one of the world’s leading managers and lessors of intermodal freight containers. As of September 30, 2012, CAI operated a worldwide fleet of approximately 1,061,000 TEUs of containers through 16 offices located in 12 countries including the United States.

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