SAN FRANCISCO, Oct. 30, 2008 (GLOBE NEWSWIRE) -- CAI International, Inc. (CAI) (NYSE:CAP) reported that net income in the third quarter of 2008 increased $0.5 million, or 9.3%, to $5.9 million, compared with net income of $5.4 million in the third quarter of 2007. Fully diluted earnings per share in the third quarter of 2008 was $0.34 with 17.5 million average shares outstanding, compared to a fully diluted earnings per share of $0.32 with 17.1 million average shares outstanding during the third quarter of 2007.
In the third quarter of 2008, CAI's revenue was $22.1 million, an increase of $4.7 million, or 26.9%, compared to the third quarter of 2007. The results for the third quarter of 2008 include results of operations of Consent Equipment AB (CEAB), which CAI acquired on April 30, 2008. Container rental revenue increased $6.2 million, or 61.4%, to $16.4 million from $10.1 million in the third quarter of 2007. Management fee revenue was $3.0 million, a decrease of $0.1 million, or 3.2%, from $3.1 million of management fee revenue reported in the third quarter of 2007. Gain on sale of container portfolios decreased $1.8 million, or 45.0%, to $2.2 million compared to $4.0 million in the third quarter of 2007. Finance lease income in the third quarter of 2008 increased $0.4 million, or 133.3%, to $0.6 million, compared to finance lease income of $0.3 million reported in the third quarter of 2007.
"I am pleased with our results for the third quarter in light of the economic slowdown occurring globally," commented Masaaki (John) Nishibori, Chief Executive Officer of CAI. "During the quarter we had strong revenue growth as a result of our fleet growth over the past year and from the overall strong utilization during the quarter. We leased the majority of our factory inventory available in the third quarter by the end of the quarter. Lease out activity was strongest during July and August but weakened during September as a result of economic downturn caused by the dislocation in the capital markets. We are focused on managing through this current weak economic period and positioning the company for when there is an upturn in demand."
Conference Call
A conference call to discuss financial results for the third quarter of 2008 will be held on Thursday, October 30, 2008 at 5:00 p.m. EDT. The dial-in number for the teleconference is 1-888-203-7337; outside of the U.S., call 1-719-234-0008. The call may be accessed live over the internet (listen only) under the "Investors" tab of CAI's website, www.caiintl.com, by selecting "Q3 2008 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, 2008, the company operated a worldwide fleet of 802,000 TEU of containers through 13 offices located in 11 countries.
The CAI International logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3968
This press release contains forward-looking statements regarding future events and the future performance of CAI International, Inc. These statements are forward looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and involve risks and uncertainties that could cause actual results of operations and other performance measures (including utilization rates) to differ materially from current expectations including, but not limited to, expected economic conditions, availability of credit on commercially favorable terms or at all, customer demand, container prices, lease rates, increased competition, volatility in exchange rates and others. CAI refers you to the documents that it has filed with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2007 and its interim reports on Form 10-Q and its reports on Form 8-K. These documents contain additional important factors that could cause actual results to differ from current expectations and from forward-looking statements contained in this press release. Furthermore, CAI is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements contained in this press release whether as a result of new information, future events or otherwise, unless required by law.
CAI International, Inc.
Consolidated Balance Sheets
(In thousands, except share information)
(UNAUDITED)
Sept. 30, Dec. 31,
ASSETS 2008 2007
--------- ---------
Cash $ 9,216 $ 8,433
Accounts receivable (owned fleet), net 17,803 12,995
Accounts receivable (managed fleet) 22,836 22,238
Current portion of direct finance leases 5,728 4,610
Deposits, prepayments and other assets 3,331 3,375
Deferred tax assets 1,943 1,777
--------- ---------
Total current assets 60,857 53,428
Container rental equipment, net 343,133 242,606
Net investment in direct finance leases 14,361 6,356
Furniture, fixtures and equipment, net 435 468
Intangible assets, net 7,045 5,994
Goodwill 50,247 50,247
--------- ---------
Total assets $ 476,078 $ 359,099
========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 4,041 $ 3,060
Accrued expenses and other current
liabilities 5,134 3,275
Due to container investors 20,625 21,075
Unearned revenue 4,011 3,744
Current portion of capital lease
obligation 4,097 31
Rental equipment payable 16,702 25,446
--------- ---------
Total current liabilities 54,610 56,631
Revolving credit facility 219,400 147,600
Deferred income tax liability 25,685 23,720
Capital lease obligation 17,815 --
--------- ---------
Total liabilities 317,510 227,951
--------- ---------
Stockholders' equity:
Common stock 2 2
Additional paid-in capital 102,478 90,988
Accumulated other comprehensive
income (loss) (1,411) 101
Retained earnings 57,499 40,057
--------- ---------
Total stockholders' equity 158,568 131,148
--------- ---------
Total liabilities and
stockholders' equity $ 476,078 $ 359,099
========== =========
CAI International, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenue:
Container rental
revenue $ 16,353 $ 10,148 $ 41,621 $ 26,308
Management fee
revenue 2,991 3,093 8,931 9,880
Gain on sale of
container portfolios 2,158 3,955 8,375 8,946
Finance lease income 622 259 1,490 868
-------- -------- -------- --------
Total revenue 22,124 17,455 60,417 46,002
-------- -------- -------- --------
Operating expenses:
Depreciation of container
rental equipment 4,493 2,315 11,225 5,766
Amortization of
intangible assets 422 311 1,123 928
Impairment of con-
tainer rental equipment 39 66 241 290
Gain on disposition
of used container
equipment (949) (1,277) (3,243) (3,325)
Gain on settlement
of lease obligation -- -- -- (694)
Equipment rental expense -- 77 20 895
Storage, handling and
other expenses 984 897 3,208 2,287
Marketing, general and
administrative expense 5,124 4,483 14,740 11,752
-------- -------- -------- --------
Total operating
expenses 10,113 6,872 27,314 17,899
-------- -------- -------- --------
Operating income 12,011 10,583 33,103 28,103
-------- -------- -------- --------
Other income and
expense:
Interest expense 2,435 2,095 6,538 8,022
Gain on extinguishment
of debt -- -- -- (681)
Interest income (38) (6) (208) (26)
-------- -------- -------- --------
Net interest
expense 2,397 2,089 6,330 7,315
Loss (gain) on
foreign exchange 544 (23) 449 (43)
-------- -------- -------- --------
Total other income
and expense- net 2,941 2,066 6,779 7,272
-------- -------- -------- --------
Income before income
taxes 9,070 8,517 26,324 20,831
Income tax expense 3,181 3,116 8,882 7,707
-------- -------- -------- --------
Net income 5,889 5,401 17,442 13,124
Accretion of preferred
stock -- -- -- (5,577)
-------- -------- -------- --------
Net income available
to common shareholders $ 5,889 $ 5,401 $ 17,442 $ 7,547
======== ======== ======== ========
Net income per share:
Basic $ 0.34 $ 0.32 $ 1.01 $ 0.54
Diluted $ 0.34 $ 0.32 $ 1.01 $ 0.49
Weighted average
shares outstanding:
Basic 17,499 17,109 17,241 13,906
Diluted 17,505 17,110 17,246 16,535
As of As of
September 30, September 30,
2008 2007
------------- -------------
(unaudited)
Managed fleet in TEUs 533,888 503,112
Owned fleet in TEUs 268,495 220,677
------------- -------------
Total 802,383 723,789
============= =============
Three Months Three Months
Ended Ended
September 30, September 30,
2008 2007
------------- -------------
(unaudited)
Average fleet utilization
rate for the period 94.20% 94.90%