CAI International
Nov 01,2007

CAI International, Inc. Reports Results for the Third Quarter of 2007

SAN FRANCISCO, Nov 1, 2007 (PrimeNewswire via COMTEX News Network) -- CAI International, Inc. (CAI) (NYSE:CAP) reported that net income in the third quarter of 2007 increased $0.8 million, or 18.6%, to $5.4 million, compared with net income of $4.6 million in the third quarter of 2006. CAI's basic earnings per share in the third quarter of 2007 increased 33.3% to $0.32 with 17.1 million average shares outstanding, compared with basic earnings per share of $0.24 with 21.2 million average shares outstanding in the third quarter of 2006. Fully diluted earnings per share in the third quarter of 2007 increased 52.4% to $0.32 with 17.1 million average shares outstanding, compared to fully diluted earnings per share of $0.21 with 21.7 million average shares outstanding in the third quarter of 2006.

In the third quarter of 2007, CAI's revenue was $17.5 million, an increase of $2.2 million, or 14.7%, compared to the third quarter of 2006. Container rental revenue increased $1.5 million, or 17.8%, to $10.1 million from $8.6 million in the third quarter of 2006. Management fee revenue was $3.1 million, unchanged from the management fee revenue reported in the third quarter of 2006. Gain on sale of container portfolios increased $0.7 million, or 21.9%, to $4.0 million from $3.3 million in the third quarter of 2006. Finance lease income in the third quarter of 2007 was $0.3 million, unchanged from finance lease income reported in the third quarter of 2006.

CAI's operating income in the third quarter of 2007 was $10.6 million, an increase of $2.2 million, or 25.7%, from $8.4 million during the third quarter of 2006. Operating income for the third quarter of 2007, compared to the third quarter of 2006, was impacted by a $0.8 million decline in depreciation expense during the quarter and a $0.9 million increase in the gain on disposition of used equipment. During the third quarter of 2007, marketing, general, and administrative expenses increased by $1.6 million, or 55.5%, to $4.5 million as a result of an increase in employee expenses relating to an increase in headcount and incentive compensation.

Comments from the CEO

Masaaki (John) Nishibori, Chief Executive Officer of CAI, commented, "We are very pleased with our results this quarter. In spite of a very competitive environment, we grew our quarter over quarter revenue and net income by 14.7% and 18.6%, respectively. Our quarterly results benefited from new leasing activity, strong secondary prices for used containers and higher utilization. By comparison, the average utilization of our operating fleet for the third quarter of 2007, net of units held at the manufacturer pending initial lease out, was 94.9%, compared to 91.9% during the third quarter of 2006. Our management business also continued to perform well. However, our management fee revenue was flat due largely to lower commission income on disposition of used containers in our managed fleet."

"The economic slowdown in the United States has had some effect on demand for containers, but the macro environment overall has been favorable. Container traffic from Asia to the United States has been growing at a lower than expected rate this year. However, container traffic from Asia to Europe has been very strong and is expected to remain so. Intra-Asia traffic has also been increasing at a brisk pace."

CAI's conference call to discuss financial results for the third quarter of 2007 will be held on Thursday, November 1, 2007 at 5:30 p.m. EDT. The dial-in number for the teleconference is 1-888-230-5492; outside U.S., call 1-913-981-5534. 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 2007 Earnings Conference Call." A webcast replay will be available for 90 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 September 30, 2007, the company operated a worldwide fleet of 724,000 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 quarter 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)
                                (UNAUDITED)

                                            September 30, December 31,
                 ASSETS                         2007          2006
                                             -----------------------

 Cash                                        $  13,051     $  20,359
 Accounts receivable (owned fleet), net of
  allowance for doubtful accounts of $900 and
  $1,045 at September 30, 2007 and December
  31, 2006, respectively                        11,995         7,731
 Accounts receivable (managed fleet)            24,296        24,061
 Related party receivables                          --           128
 Current portion of direct finance leases        3,384         2,248
 Deposits, prepayments and other assets          4,680         4,077
 Deferred tax assets                               963           915
                                             -----------------------
  Total current assets                          58,369        59,519
 Container rental equipment, net of
  accumulated depreciation of $87,628 and
  $93,633 at September 30, 2007 and December
  31, 2006, respectively                       223,793       161,353
 Net investment in direct finance leases         3,022         4,329
 Furniture, fixtures and equipment, net of
  accumulated depreciation of $395 and $290
  at September 30, 2007 and December 31,
  2006 , respectively                              445           459
 Intangible assets, net of accumulated
  amortization of $1,235 and $307 at
  September 30, 2007 and December 31, 2006,
  respectively                                   6,286         7,093
 Goodwill                                       50,247        50,247
                                             -----------------------
   Total assets                              $ 342,162     $ 283,000
                                             =======================

 LIABILITIES, REDEEMABLE CONVERTIBLE
  PREFERRED STOCK AND STOCKHOLDERS' EQUITY

 Accounts payable                           $    2,958     $   3,585
 Accrued expenses and other current
  liabilities                                    3,723        15,276
 Due to container investors                     21,215        21,650
 Unearned revenue                                  731           740
 Current portion of long-term debt                  --         5,000
 Current portion of capital lease obligation       120           525
 Rental equipment payable                       36,708        30,788
                                             -----------------------
  Total current liabilities                     65,455        77,564
 Revolving credit facility                     127,500        97,000
 Term loan                                          --        13,750
 Subordinated convertible note payable              --        37,500
 Deferred income tax liability                  24,376        24,500
 Capital lease obligation                           --            31
                                             -----------------------

  Total liabilities                            217,331       250,345
                                             -----------------------

 Cumulative redeemable convertible preferred
  stock:
  Series A 10.5% cumulative redeemable
   convertible preferred stock, no par
   value. Aggregate liquidation value of zero
   at September 30, 2007 and $1,531 at
   December 31, 2006. Authorized 1,113,840
   shares; issued and outstanding, zero at
   September 30, 2007 and 724,920 shares
   at December 31, 2006                             --         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 at September 30, 2007, 10,584,000
  shares at December 31, 2006                       --         1,260
 Common stock, par value $.0001 per share ;
  authorized 84,000,000 shares; issued and
  outstanding, 17,144,977 shares at September
  30, 2007, zero at December 31, 2006                2            --

 Additional paid-in capital                     90,691            --
 Accumulated other comprehensive income            191            95
 Retained earnings                              33,947        26,400
                                             -----------------------
  Total stockholders' equity                   124,831        27,755
                                             -----------------------
 Total liabilities and stockholders' equity  $ 342,162     $ 283,000
                                             =======================

                                CAI International, Inc.
                            Consolidated Statements of Income
                         (in thousands, except per share data)
                                      (UNAUDITED)

                       Successor  Predecessor  Successor  Predecessor
                         ------------------      ------------------
                         Three Months Ended      Nine Months Ended
                            September 30,          September 30,
                         ------------------      ------------------
                           2007      2006         2007       2006
                         ------------------      ------------------
 Revenue:
  Container rental
   revenue               $ 10,148  $  8,617      $ 26,308  $ 24,228
  Management fee revenue    3,093     3,060         9,880     8,530
  Gain on sale of
   container portfolios     3,955     3,245         8,946     8,365
  Finance lease income        259       300           868       927
                         ------------------      ------------------

   Total revenue           17,455    15,222        46,002    42,050
                         ------------------      ------------------
 Operating expenses:
  Depreciation of
   container rental
   equipment                2,315     3,158         5,766     9,653
  Amortization of
   intangible assets          311        --           928        --
  Impairment of
   container rental
   equipment                   66        29           290       270
  Gain on disposition of
   used container
   equipment               (1,277)     (419)       (3,325)     (804)
  Gain on settlement of
   lease obligation            --        --          (694)       --
  Equipment rental
   expense                     77       395           895     1,187
  Storage, handling and
   other expenses             897       756         2,287     2,411
  Marketing, general and
   administrative
   expense                  4,460     2,868        11,709     8,967
                         ------------------      ------------------

   Total operating
    expenses                6,849     6,787        17,856    21,684
                         ------------------      ------------------
 Operating income          10,606     8,435        28,146    20,366
                         ------------------      ------------------

 Interest expense           2,095     1,325         8,022     4,183
 Gain on extinguishment
  of debt                      --        --          (681)       --

 Interest income               (6)      (18)          (26)      (37)
                         ------------------      ------------------

   Net interest expense     2,089     1,307         7,315     4,146
                         ------------------      ------------------
   Income before income
    taxes                   8,517     7,128        20,831    16,220

 Income tax expense         3,116     2,574         7,707     5,856
                         ------------------      ------------------


 Net income                 5,401     4,554        13,124    10,364

 (Accretion)/decretion
  of preferred stock           --       488        (5,577)    1,464
                         ------------------      ------------------

 Net income available to
  common shareholders    $  5,401  $  5,042      $  7,547  $ 11,828
                         ==================      ==================

 Net income per share:
  Basic                  $   0.32  $   0.24      $   0.54      0.56
  Diluted                $   0.32  $   0.21      $   0.49      0.48

 Weighted average shares
  outstanding:
  Basic                    17,109    21,168        13,906    21,168
  Diluted                  17,110    21,735        16,535    21,735

                                 As of                 As of
                           September 30, 2007    September 30, 2006
                           ------------------    ------------------
                                          (unaudited)

 Managed fleet in TEUs           503,112               472,681
 Owned fleet in TEUs             220,677               172,571
                           ------------------    ------------------
  Total                          723,789               645,252
                           ==================    ==================

 Percentage of on-lease
  fleet on long-term leases         70.6%                 63.8%
 Percentage of on-lease
  fleet on short-term leases        27.8                  34.3
 Percentage of on-lease fleet
  on finance leases                  1.6                   1.9
                           ------------------    ------------------

 Total                             100.0%                100.0%

                           Three Months Ended    Three Months Ended
                              September 30,          September 30,
                                  2007                   2006
                           ------------------    ------------------
                                         (unaudited)
 Average fleet utilization
  rate for the period               94.9%                 91.9%

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 2007 PrimeNewswire, Inc. All rights reserved.

News Provided by COMTEX

Stock Information

2020 Annual Report

2020 Annual Report