CAI International
Mar 04,2008

CAI International, Inc. Reports Fourth Quarter of 2007 and Full Year Results

SAN FRANCISCO, Mar 4, 2008 (PrimeNewswire via COMTEX News Network) -- 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%

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: CAI International

CAI International, Inc.
          Victor Garcia, Chief Financial Officer
          (415) 788-0100
          vgarcia@caiintl.com

(C) Copyright 2008 PrimeNewswire, Inc. All rights reserved.

News Provided by COMTEX

Stock Information

2020 Annual Report

2020 Annual Report