SAN FRANCISCO, March 4, 2008 (PRIME NEWSWIRE) -- CAI International, Inc. (CAI) (NYSE:CAP) reported that net income in the fourth quarter of 2007 increased $0.9 million, or 16.9%, to $6.1 million, compared with net income of $5.2 million in the fourth quarter of 2006. Fully diluted earnings per share in the fourth quarter of 2007 was unchanged at $0.36 with 17.1 million average shares outstanding, compared to 16.3 million average shares outstanding in the fourth quarter of 2006.
In the fourth quarter of 2007, CAI's revenue was $18.9 million, an increase of $0.3 million, or 1.4%, compared to the fourth quarter of 2006. Container rental revenue increased $2.4 million, or 26.2%, to $11.8 million from $9.4 million in the fourth quarter of 2006. Management fee revenue was $2.8 million, a decrease of $0.8 million, or 22.0%, from the management fee revenue reported in the fourth quarter of 2006. Gain on sale of container portfolios decreased $1.5 million, or 27.5%, to $3.9 million from $5.4 million in the fourth quarter of 2006. Finance lease income in the fourth quarter of 2007 was $0.3 million, unchanged from finance lease income reported in the fourth quarter of 2006.
Total revenue for the year ended December 31, 2007 increased by $4.2 million, or 6.9%, to $64.9 million compared to $60.7 million for the year ended December 31, 2006. Net income for the year ended December 31, 2007 increased by $3.6 million, or 23.3%, to $19.2 million, compared to $15.6 million for the year ended December 31, 2006. The fully diluted earnings per share for the year ended December 31, 2007 was $0.85 with 16.7 million average shares outstanding.
Comments from the CEO
Masaaki (John) Nishibori, Chief Executive Officer of CAI, commented, "CAI had excellent financial performance in 2007 and we finished the year with added momentum. Utilization and fleet growth have been the drivers of our results. Our average utilization was 96.0% in the fourth quarter and has remained strong to date in 2008. In 2007 we purchased $220 million worth of containers, exceeding our target of $150 million to $200 million. For the year, overall fleet size in TEUs increased 12.8%.
"Our overall revenue in the fourth quarter of 2007 was largely unchanged due to our selling fewer containers to container investors than in the fourth quarter of 2006. There continues to be interest from container investors in new container investments, however, in the fourth quarter of 2007 we decided to retain some investment in our owned fleet. As in the third quarter of 2007, our management fee income is lower than the year ago quarter due to lower fees on the disposition of older managed equipment."
He continued, "We have not seen a decline in demand for our services as a result of the U.S. economic slowdown. Trading lanes to Europe and within Asia remain strong, and exports out of the U.S. have diminished the number of units off-lease in some of our traditionally low demand areas. We are optimistic that our utilization will remain strong this year. Price quotes from container manufacturers on new container production have increased by 20 to 30% as a result of increased commodity prices and other costs. As a result, we think that our customers will turn to leasing more this year, and will hold onto existing equipment as a more cost effective alternative to buying new equipment."
Guidance for 2008
CAI believes that year over year revenue growth will accelerate as a result of the growth in the owned fleet in 2007, expected future investment and high utilization in 2008. Overall, CAI estimates 2008 earnings per share to be $1.30 to $1.35 on a fully diluted share count of 17.1 million.
CAI's conference call to discuss financial results for the fourth quarter of 2007 will be held on Tuesday, March 4, 2008 at 5:00 p.m. EST. The dial-in number for the teleconference is 1-877-604-9672; outside U.S., call 1-719-325-4927. The call may be accessed live over the internet (listen only) under the "Investors" tab of CAI's website, www.caiintl.com, by selecting "Q4 2007 Earnings Conference Call." A webcast replay will be available for 30 days on the Investors section of our website.
About CAI International, Inc.
CAI is one of the world's leading managers and lessors of intermodal freight containers. As of December 31, 2007, the company operated a worldwide fleet of 754,000 TEU of containers through 10 offices located in 8 countries.
The CAI International logo is available at http://www.primenewswire.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 to differ materially from current expectations including, but not limited to, economic conditions, customer demand, increased competition and others. CAI refers you to the documents that it has filed with the Securities and Exchange Commission, including its registration statement on Form S-1 and its Form 10-Q for the second and third quarters of 2007. 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)
Dec. 31, Dec. 31,
ASSETS 2007 2006
-------- --------
Cash $ 8,433 $20,359
Accounts receivable (owned fleet), net of
allowance for doubtful accounts of $530
and $1,045 at December 31, 2007
and 2006, respectively 12,995 7,731
Accounts receivable (managed fleet) 22,238 24,061
Related party receivables -- 128
Current portion of direct finance leases 4,610 2,248
Deposits, prepayments and other assets 3,375 4,077
Deferred tax assets 2,087 915
-------- --------
Total current assets 53,738 59,519
Container rental equipment, net of
accumulated depreciation of $86,946 and
$93,633 at December 31, 2007
and 2006, respectively 242,606 161,353
Net investment in direct finance leases 6,356 4,329
Furniture, fixtures and equipment,
net of accumulated depreciation of
$325 and $290 at December 31, 2007
and 2006 , respectively 468 459
Intangible assets, net of accumulated
amortization of $1,548 and $307
December 31, 2007 and 2006, respectively 5,994 7,093
Goodwill 50,247 50,247
-------- --------
Total assets $359,409 $283,000
======== ========
LIABILITIES, CUMULATIVE REDEEMABLE CONVERTIBLE
PREFERRED STOCK AND STOCKHOLDERS' EQUITY
Accounts payable $ 3,060 $ 3,585
Accrued expenses and other current liabilities 3,275 15,276
Due to container investors 21,075 21,650
Unearned revenue 3,744 740
Current portion of long-term debt -- 5,000
Current portion of capital lease obligation 31 525
Rental equipment payable 25,446 30,788
-------- --------
Total current liabilities 56,631 77,564
Revolving credit facility 147,600 97,000
Term loan -- 13,750
Subordinated convertible note payable -- 37,500
Deferred income tax liability 24,030 24,500
Capital lease obligation -- 31
-------- --------
Total liabilities 228,261 250,345
-------- --------
Cumulative redeemable convertible preferred stock:
Series A 10.5% cumulative redeemable convertible
preferred stock, no par value. Aggregate
liquidation value of zero and $1,531 at
December 31, 2007 and 2006, respectively.
Authorized 1,113,840 shares; issued and
outstanding, zero and 724,920 shares at
December 31, 2007 and 2006, respectively -- 6,072
Note receivable on preferred stock -- (1,172)
-------- --------
Total cumulative redeemable convertible
preferred stock -- 4,900
-------- --------
Stockholders' equity:
Common stock, no par value; authorized 84,000,000
shares; issued and outstanding, zero and
10,584,000 shares at December 31, 2007
and 2006, respectively -- 1,260
Common stock, par value $.0001 per share ;
authorized 84,000,000 shares; issued and
outstanding, 17,144,977 shares and zero at
December 31, 2007 and 2006, respectively 2 --
Additional paid-in capital 90,988 --
Accumulated other comprehensive income 101 95
Retained earnings 40,057 26,400
-------- --------
Total stockholders' equity 131,148 27,755
-------- --------
Total liabilities and stockholders' equity $359,409 $283,000
======== ========
CAI International, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended
December 31,
------------------
2007 2006
-------- --------
Revenue:
Container rental revenue $ 11,840 $ 9,383
Management fee revenue 2,783 3,569
Gain on sale of container portfolios 3,909 5,392
Finance lease income 338 267
-------- --------
Total revenue 18,870 18,611
-------- --------
Operating expenses:
Depreciation of container
rental equipment 3,039 2,360
Amortization of intangible assets 313 307
Impairment of container rental equipment 75 81
Gain on disposition of used
container equipment (1,075) (747)
Gain on settlement of lease obligation (86) --
Equipment rental expense 66 395
Storage, handling and other expenses 790 779
Marketing, general and administrative expense 3,959 3,389
-------- --------
Total operating expenses 7,081 6,564
-------- --------
Operating income 11,789 12,047
-------- --------
Interest expense 2,384 3,715
Gain on extinguishment of debt -- --
Interest income (100) (20)
-------- --------
Net interest expense 2,284 3,695
-------- --------
Income before income taxes 9,505 8,352
Income tax expense 3,395 3,119
-------- --------
Net income 6,110 5,233
(Accretion)/decretion of preferred stock -- (6)
-------- --------
Net income available to common shareholders $ 6,110 $ 5,227
======== ========
Net income per share:
Basic $ 0.36 $ 0.49
Diluted $ 0.36 $ 0.36
Weighted average shares outstanding :
Basic 17,109 10,584
Diluted 17,109 16,270
CAI International, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
Successor Predecessor
----------------- -------
Three Nine
Year Months Months
Ended Ended Ended
Dec. 31, Dec. 31, Sept. 30,
2007 2006 2006
------- ------- -------
Revenue:
Container rental revenue $38,148 $ 9,383 $24,228
Management fee revenue 12,663 3,569 8,530
Gain on sale of container portfolios 12,855 5,392 8,365
Finance lease income 1,206 267 927
------- ------- -------
Total revenue 64,872 18,611 42,050
------- ------- -------
Operating expenses:
Depreciation of container
rental equipment 8,805 2,360 9,653
Amortization of intangible assets 1,241 307 --
Impairment of container
rental equipment 365 81 270
Gain on disposition of used
container equipment (4,400) (747) (804)
Gain on settlement of
lease obligation (780) -- --
Equipment rental expense 961 395 1,187
Storage, handling and other expenses 3,077 779 2,411
Marketing, general and
administrative expense 15,668 3,389 8,967
------- ------- -------
Total operating expenses 24,937 6,564 21,684
------- ------- -------
Operating income 39,935 12,047 20,366
------- ------- -------
Interest expense 10,406 3,715 4,183
Gain on extinguishment of debt (681) -- --
Interest income (126) (20) (37)
------- ------- -------
Net interest expense 9,599 3,695 4,146
------- ------- -------
Income before income taxes 30,336 8,352 16,220
Income tax expense 11,102 3,119 5,856
------- ------- -------
Net income 19,234 5,233 10,364
(Accretion)/decretion of preferred stock (5,577) (6) 1,464
------- ------- -------
Net income available to
common shareholders $13,657 $ 5,227 $11,828
======= ======= =======
Net income per share:
Basic $ 0.93 $ 0.49 $ 0.56
Diluted $ 0.85 $ 0.36 $ 0.48
Weighted average shares outstanding :
Basic 14,713 10,584 21,168
Diluted 16,682 16,270 21,735
As of As of
Dec. 31, Dec. 31,
2007 2006
------- -------
(unaudited)
Managed fleet in TEUs 500,433 483,333
Owned fleet in TEUs 253,910 185,645
------- -------
Total 754,343 668,978
======= =======
Percentage of on-lease fleet on long-term leases 70.9% 65.3%
Percentage of on-lease fleet on short-term leases 26.8 32.8
Percentage of on-lease fleet on finance leases 2.3 1.9
------- -------
Total 100.0% 100.0%
======= =======
Three Three
Months Months
Ended Ended
Dec. 31, Dec. 31,
2007 2006
------- -------
(unaudited)
Average fleet utilization rate for the period 96.0% 92.5%