UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange
Act of 1934
Date of Report (Date of earliest event reported) July 26, 2011
CAI International, Inc.
(Exact
name of registrant as specified in its charter)
Delaware |
001-33388 |
94-3109229 |
||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
Steuart Tower, 1 Market Plaza, Suite 900
San Francisco, California |
94105 |
(Address of principal executive office) | (Zip Code) |
Registrant's telephone number, including area code: (415)
788-0100
|
(Former name or former address, if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On July 26, 2011 CAI International, Inc. issued a press release to announce its earnings for the second quarter of 2011. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit 99.1. Press release dated July 26, 2011.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CAI International, Inc. |
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(Registrant) |
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July 26, 2011 |
/s/ Timothy B. Page |
|
(Date) |
Timothy B. Page |
Exhibit 99.1
CAI International, Inc. Reports Results for the Second Quarter of 2011
SAN FRANCISCO--(BUSINESS WIRE)--July 26, 2011--CAI International, Inc. (CAI) (NYSE:CAP), one of the world’s leading lessors of intermodal freight containers, today reported results for the second quarter of 2011.
Highlights for the Second Quarter of 2011
Net income attributable to CAI common stockholders was $10.9 million for the second quarter of 2011, compared to $5.7 million for the second quarter of 2010, an increase of 92%.
Total revenue for the second quarter of 2011 was $28.8 million, compared to $17.4 million for the second quarter of 2010, an increase of 66%. Container rental revenue for the second quarter of 2011 was $24.7 million, compared to $14.0 million for the prior year quarter. The increase in container rental revenue was primarily due to a 37% increase in the average number of TEUs of owned containers on lease and to a 31% increase in the average owned fleet per diem rates compared to the second quarter last year. Management fee revenue for the second quarter of 2011 was $3.3 million, compared to $2.5 million for the prior year quarter. Finance lease income for the second quarter of 2011 remained unchanged at $0.5 million compared to the second quarter of 2010.
Victor Garcia, Chief Executive Officer of CAI, commented, “We are very pleased with our strong revenue and earnings growth this quarter resulting from the continued increase in containerized trade growth this year. Clarkson’s Research in July estimated overall containerized trade growth to remain at approximately 9% for 2011, supported by moderate growth of 6% in the main trading lanes to Europe and United States, and more robust growth within Asia, Latin America and the Middle East. This growth in containerized trade has resulted in an increase in pickup of equipment over recent months. During the second quarter we leased out approximately 39,000 TEUs of new containers and we have leased out an additional 13,000 TEUs to date in July. Utilization of our equipment remained at 98% this quarter and we expect utilization to continue at similar levels through the remainder of the year. We believe utilization will stay strong next year due to ongoing trade growth and the investment we have made over the past two years in equipment with multi-year leases.”
He continued further, “We are pleased that our investments in equipment commitments for this year have already exceeded our original expectations, and the level of investment last year. Our customers have already committed to pick up approximately $86 million of equipment during the remainder of the third quarter. All of this equipment, once on long term leases, will provide committed cash flow for the next several years.”
CAI International, Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
(In thousands, except share information) | ||||||||
(UNAUDITED) | ||||||||
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash | $ | 11,064 | $ | 14,393 | ||||
Accounts receivable (owned fleet), net of allowance for doubtful
accounts |
19,975 | 20,874 | ||||||
Accounts receivable (managed fleet) | 19,863 | 19,496 | ||||||
Current portion of direct finance leases | 3,276 | 3,948 | ||||||
Prepaid expenses | 6,472 | 6,645 | ||||||
Deferred tax assets | 1,875 | 1,931 | ||||||
Other current assets | 2,910 | 1,364 | ||||||
Total current assets | 65,435 | 68,651 | ||||||
Container rental equipment, net of accumulated depreciation of
$94,706 |
738,659 | 530,939 | ||||||
Net investment in direct finance leases | 11,236 | 7,886 | ||||||
Furniture, fixtures and equipment, net of accumulated depreciation
of |
2,229 | 2,383 | ||||||
Intangible assets, net of accumulated amortization of $6,053 and
$5,982 |
3,000 | 3,593 | ||||||
Total assets | $ | 820,559 | $ | 613,452 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 2,327 | $ | 2,411 | ||||
Accrued expenses and other current liabilities | 5,231 | 5,408 | ||||||
Due to container investors | 24,132 | 23,283 | ||||||
Unearned revenue | 5,799 | 5,724 | ||||||
Current portion of term loans | 15,600 | 24,800 | ||||||
Current portion of capital lease obligations | 3,479 | 4,438 | ||||||
Rental equipment payable | 72,094 | 88,097 | ||||||
Total current liabilities | 128,662 | 154,161 | ||||||
Revolving credit facility | 256,600 | 51,600 | ||||||
Term loans | 170,600 | 169,200 | ||||||
Deferred income tax liability | 30,882 | 30,226 | ||||||
Capital lease obligations | 9,803 | 10,509 | ||||||
Income taxes payable | 82 | 82 | ||||||
Total liabilities | 596,629 | 415,778 | ||||||
Stockholders' equity | ||||||||
Common stock: par value $.0001 per share; authorized 84,000,000
shares; issued |
2 | 2 | ||||||
Additional paid-in capital | 127,504 | 127,064 | ||||||
Accumulated other comprehensive loss | (780 | ) | (2,510 | ) | ||||
Retained earnings | 78,719 | 55,043 | ||||||
Total CAI stockholders' equity | 205,445 | 179,599 | ||||||
Non-controlling interest | 18,485 | 18,075 | ||||||
Total stockholders' equity | 223,930 | 197,674 | ||||||
Total liabilities and stockholders' equity | $ | 820,559 | $ | 613,452 |
CAI International, Inc. | |||||||||||||||||
Consolidated Statements of Income | |||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
(UNAUDITED) | |||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||||
Revenue | |||||||||||||||||
Container rental revenue | $ | 24,711 | $ | 13,974 | $ | 47,096 | $ | 26,318 | |||||||||
Management fee revenue | 3,275 | 2,536 | 6,790 | 4,717 | |||||||||||||
Gain on sale of container portfolios | 253 | 348 | 1,663 | 614 | |||||||||||||
Finance lease income | 520 | 505 | 952 | 907 | |||||||||||||
Total revenue | 28,759 | 17,363 | 56,501 | 32,556 | |||||||||||||
Operating expenses | |||||||||||||||||
Depreciation of container rental equipment | 7,436 | 4,471 | 14,172 | 8,678 | |||||||||||||
Amortization of intangible assets | 343 | 341 | 686 | 695 | |||||||||||||
Impairment of container rental equipment | 5 | 11 | 10 | 28 | |||||||||||||
Gain on disposition of used container equipment | (2,785 | ) | (2,498 | ) | (6,400 | ) | (3,918 | ) | |||||||||
Storage, handling and other expenses | 1,360 | 1,763 | 2,455 | 3,954 | |||||||||||||
Marketing, general and administrative expenses | 5,517 | 5,527 | 10,119 | 10,476 | |||||||||||||
Loss (gain) on foreign exchange | (37 | ) | 230 | 23 | 411 | ||||||||||||
Total operating expenses | 11,839 | 9,845 | 21,065 | 20,324 | |||||||||||||
Operating income | 16,920 | 7,518 | 35,436 | 12,232 | |||||||||||||
Interest expense | 3,529 | 963 | 6,503 | 1,820 | |||||||||||||
Interest income | (1 | ) | (88 | ) | (4 | ) | (120 | ) | |||||||||
Net interest expense | 3,528 | 875 | 6,499 | 1,700 | |||||||||||||
Net income before income taxes and non-controlling interest | 13,392 | 6,643 | 28,937 | 10,532 | |||||||||||||
Income tax expense | 2,301 | 967 | 4,851 | 1,807 | |||||||||||||
Net income | 11,091 | 5,676 | 24,086 | 8,725 | |||||||||||||
Net income attributable to non-controlling interest | (211 | ) | - | (410 | ) | - | |||||||||||
Net income attributable to CAI common stockholders | $ | 10,880 | $ | 5,676 | $ | 23,676 | $ | 8,725 | |||||||||
Net income per share attributable to | |||||||||||||||||
CAI common stockholders | |||||||||||||||||
Basic | $ | 0.56 | $ | 0.32 | $ | 1.23 | $ | 0.49 | |||||||||
Diluted | $ | 0.55 | $ | 0.31 | $ | 1.20 | $ | 0.48 | |||||||||
Weighted average shares outstanding | |||||||||||||||||
Basic | 19,295 | 17,910 | 19,295 | 17,908 | |||||||||||||
Diluted | 19,798 | 18,141 | 19,779 | 18,098 | |||||||||||||
CAI International, Inc. | |||||
Fleet Data | |||||
(UNAUDITED) | |||||
As of June 30, | |||||
2011 | 2010 | ||||
Managed fleet in TEUs | 468,598 | 512,836 | |||
Owned fleet in TEUs | 415,260 | 263,632 | |||
Total | 883,858 | 776,468 | |||
Conference Call
A conference call to discuss the financial results for the second quarter of 2011 will be held on Tuesday, July 26, 2011 at 5:00 p.m. ET. The dial-in number for the teleconference is 1-877-303-9148; outside of the U.S., call 1-760-536-5211. The call may be accessed live over the internet (listen only) under the “Investors” tab of CAI’s website, www.capps.com, by selecting “Q2 2011 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 June 30, 2011, the company operated a worldwide fleet of approximately 884,000 TEUs of containers through 12 offices located in 10 countries including the United States.
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 to differ materially from current expectations including, but not limited to, utilization rates, expected economic conditions, availability of credit on commercially favorable terms or at all, customer demand, container investment levels, 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, 2010 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.
CONTACT:
CAI International, Inc.
Tim Page, 415-788-0100
Chief
Financial Officer
tpage@capps.com