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CAI International, Inc. Reports Results For The Fourth Quarter And Full Year Of 2012

Stocks in this article: CAP

Mr. Garcia concluded, “We believe the prospects for new container investment in 2013 for CAI and the container leasing industry remain compelling. The second half of 2012 saw a limited amount of new container production, which we believe resulted in below normal industry-wide levels of new container inventory at the factories for this time of year. At the same time, we expect a recovery in global trade; Clarkson Research has estimated that containerized trade will grow by approximately 6% in 2013, as compared to a growth rate of 4% in 2012. Expected trade growth, continued high utilization levels of lessor fleets and our belief that many shipping companies will continue to have limited budgets for container purchases in the coming year, are all factors that we believe will lead to a strong market for our continued investment in new containers. We believe that a strong market for new container investment, combined with a continuation of opportunities for sale leasebacks with customers and the repurchase of managed portfolios, will lead to continued strong growth in revenue and profitability for CAI in 2013.”

CAI International, Inc.
Consolidated Balance Sheets
(In thousands, except share information)
(UNAUDITED)
 
December 31, December 31,
  2012     2011  
Assets
Current assets
Cash $ 17,671 $ 14,078
Accounts receivable (owned fleet), net of allowance for doubtful accounts
of $794 and $819 at December 31, 2012 and 2011, respectively 32,627 26,381
Accounts receivable (managed fleet) 19,131 19,054
Current portion of direct finance leases 10,625 6,158
Prepaid expenses 11,952 7,079
Deferred tax assets 2,189 1,968
Other current assets   919     185  
Total current assets 95,114 74,903
Restricted cash 4,376 599
Rental equipment, net of accumulated depreciation of $147,654 and
$109,336 at December 31, 2012 and 2011, respectively 1,210,234 841,847
Net investment in direct finance leases 74,929 31,591
Furniture, fixtures and equipment, net of accumulated depreciation of
$1,254 and $1,006 at December 31, 2012 and 2011, respectively 1,847 2,095
Intangible assets, net of accumulated amortization of $7,447 and $6,519
at December 31, 2012 and 2011, respectively   1,441     2,333  
Total assets $ 1,387,941   $ 953,368  
 
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 5,985 $ 3,536
Accrued expenses and other current liabilities 8,465 5,761
Due to container investors 18,589 20,113
Unearned revenue 7,893 6,786
Current portion of debt 61,044 25,764
Current portion of capital lease obligations 2,242 3,792
Rental equipment payable   2,561     13,301  
Total current liabilities 106,779 79,053
Debt 888,990 575,014
Deferred income tax liability 40,051 33,816
Capital lease obligations 5,084 16,480
Income taxes payable   192     269  
Total liabilities   1,041,096     704,632  
 
Stockholders' equity

Common stock: par value $.0001 per share; authorized 84,000,000 shares; issued and

outstanding 22,052,529 and 19,295,359 shares at December 31, 2012 and 2011, respectively

2 2
Additional paid-in capital 181,063 128,183
Accumulated other comprehensive loss (2,917 ) (3,381 )
Retained earnings   168,697     105,232  
Total CAI stockholders' equity 346,845 230,036
Non-controlling interest   -     18,700  
Total stockholders' equity   346,845     248,736  
Total liabilities and stockholders' equity $ 1,387,941   $ 953,368  

CAI International, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(UNAUDITED)
       
Three Months Ended Year Ended
December 31, December 31,
  2012     2011     2012     2011  
Revenue
Rental revenue $ 44,921 $ 32,005 $ 152,982 $ 106,694
Management fee revenue 2,395 3,102 12,094 12,957
Gain on sale of container portfolios - - 1,256 2,345
Finance lease income   2,538     1,136     7,593     3,710  
Total revenue   49,854     36,243     173,925     125,706  
 
Operating expenses
Depreciation of rental equipment 14,146 10,907 48,352 33,633
Amortization of intangible assets 226 229 902 1,254
Gain on disposition of used rental equipment (3,634 ) (3,223 ) (12,445 ) (13,374 )
Storage, handling and other expenses 3,437 1,994 9,402 5,513
Marketing, general and administrative expenses 6,048 5,573 24,658 21,009
Loss (gain) on foreign exchange   45     (138 )   170     (354 )
Total operating expenses   20,268     15,342     71,039     47,681  
 
Operating income   29,586     20,901     102,886     78,025  
 
Interest expense 9,361 5,336 28,796 16,139
Interest income   (1 )   (6 )   (9 )   (12 )
Net interest expense   9,360     5,330     28,787     16,127  
 
Net income before income taxes and non-controlling interest 20,226 15,571 74,099 61,898
Income tax expense   2,815     2,648     9,818     11,084  
 
Net income 17,411 12,923 64,281 50,814
Net income attributable to non-controlling interest   -     (32 )   (816 )   (625 )
Net income attributable to CAI common stockholders $ 17,411   $ 12,891   $ 63,465   $ 50,189  
 

Net income per share attributable to CAI common stockholders

Basic $ 0.87 $ 0.67 $ 3.26 $ 2.60
Diluted $ 0.85 $ 0.66 $ 3.18 $ 2.55
 
Weighted average shares outstanding
Basic 20,090 19,295 19,495 19,295
Diluted 20,581 19,564 19,945 19,693

CAI International, Inc.
Fleet Data
(UNAUDITED)
 
As of December 31,
2012 2011
 
Owned container fleet in TEUs 704,417 458,254
Managed container fleet in TEUs 359,133 470,401
Total container fleet in TEUs 1,063,550 928,655
 
 
 
Owned railcar fleet in units 1,456 -




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