Victor Garcia, Chief Executive Officer of CAI, commented, “2012 was an excellent year for our company. We achieved strong revenue and earnings growth, generating $63.5 million of net income, a 26% increase compared to 2011. During the year we invested more than $520 million in equipment, a record level for CAI. In addition to investment in new containers, we were able to finalize a number of other very attractive investment opportunities, including sale leaseback transactions with our shipping customers and the purchase of container portfolios from our managed fleet. While our overall fleet utilization softened slightly during 2012 from the record levels seen in 2010 and 2011, it remained robust at an average for the year of 94.2%.
“The fourth quarter of 2012 saw the normal seasonal pattern of softening utilization, our average utilization dropping from 94.8% in the third quarter to 93.4% in the fourth quarter. At the end of the year, the utilization of our fleet was 92.5%. Our utilization in the first quarter of 2013 has stabilized around that level and we believe utilization will increase over the remainder of the quarter and into the second quarter based on increasing demand for equipment by our customers.
Mr. Garcia continued, “During December 2012, we closed a public offering of our stock from which we received proceeds of more than $50 million. The new equity provides the Company with sufficient financial resources to pursue additional market opportunities in 2013. We expect that by the end of the first quarter of 2013 we will have invested approximately $100 million in portfolio purchases and sale leaseback opportunities that will begin generating income in the second quarter of 2013. To serve our customers’ needs, we are also investing in new containers as we believe demand in the second quarter will be strong. We expect 2013 will be a strong year for investment, revenue and earnings, with first quarter net income below that of the fourth quarter of 2012, due substantially to the normal seasonal decline in utilization and the limited impact new investment will have on the quarter’s revenue.