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

February 11, 2021
Date of Report (Date of earliest event reported)
 
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)
 
(I. R. S. Employer
Identification No.)
 
Steuart Tower, 1 Market Plaza, Suite 2400, San Francisco, California 94105
(Address of principal executive offices, including ZIP Code)
 
Registrant’s telephone number, including area code: (415) 788-0100
 
N/A
(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))

Securities registered pursuant to Section 12(b) of the Act:
 
Le
   
Title of each class
Trading symbols
Name of exchange on which registered
Common Stock, par value $0.0001 per share
CAI
New York Stock Exchange
8.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock, par value $0.0001 per share
CAI-PA
New York Stock Exchange
8.50% Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock, par value $0.0001 per share
CAI-PB
New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02. Results of Operations and Financial Condition.

On February 16, 2021, CAI International, Inc. (the “Company”) issued a press release reporting its results of operations for the fourth quarter and full year of 2020.  A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On February 11, 2021, the Board of Directors of the Company promoted David Morris to Vice President, Chief Accounting Officer, and also designated Mr. Morris as the Company’s principal accounting officer for SEC reporting purposes.
 
Mr. Morris, age 54, has served as our Vice President, Finance and Corporate Controller since May 2011. From 2008 to 2011, Mr. Morris served as Senior Director, Finance, and prior to that as Director, SEC Reporting, of Celera Corporation, a Nasdaq-listed healthcare company. Previously, Mr. Morris was a Senior Audit Manager at KPMG LLP with a focus on public companies. Mr. Morris received a Bachelor of Engineering from the University of Bristol, U.K. in 1988. Mr. Morris is a U.K. Chartered Accountant and a California-licensed Certified Public Accountant.
 
In this role, Mr. Morris’s initial annual base salary will be $290,000, subject to annual adjustment, and he will continue to be eligible to participate in the Company’s bonus and equity programs. Mr. Morris will also continue to participate in the benefit programs generally provided to employees of the Company in the same manner as in his prior role with the Company.

Item 9.01.
Financial Statements and Exhibits.

(d)  Exhibits.

Exhibit No.
 
Description
     
 

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

  CAI INTERNATIONAL, INC.
     
     
Dated:  February 16, 2021 By: /s/ Timothy B. Page
    Name:  Timothy B. Page
    Title:  Interim President and Chief Executive Officer

Exhibit 99.1

CAI International, Inc. Reports Record Fourth Quarter Results and Full Year 2020 Results, Announces Increase in its Quarterly Dividend and Expands its Share Repurchase Program

SAN FRANCISCO--(BUSINESS WIRE)--February 16, 2021--CAI International, Inc. (“CAI” or the “Company”) (NYSE: CAI), one of the world’s leading transportation finance companies, today reported results for the fourth quarter and full year of 2020.

Highlights

  • Net income from continuing operations attributable to CAI common stockholders for the fourth quarter of 2020 was a record $32.5 million, or $1.81 per fully diluted share.
  • Adjusted net income from continuing operations attributable to CAI common stockholders1 for the fourth quarter of 2020 was also a record at $31.6 million, or $1.76 per fully diluted share.
  • Return on equity on adjusted net income from continuing operations1 was 21.2% in the fourth quarter of 2020.
  • Container lease revenue for the fourth quarter of 2020 was a record $81.6 million, compared to $73.9 million in the third quarter of 2020.
  • CAI’s Board of Directors declared a cash dividend of $0.30 per common share payable on March 25, 2021 to shareholders of record as of March 11, 2021.
  • Average CEU utilization for CAI’s owned container fleet during the fourth quarter of 2020 was 99.3%, compared to 98.4% for the third quarter of 2020. Current CEU utilization is 99.7%.
  • Under the previously approved share repurchase program, CAI repurchased approximately 249,000 shares of common stock during the fourth quarter of 2020 at an average price of $31.95 per share. CAI has purchased an additional 390,000 shares in the first quarter of 2021 to date.
 

Financial and Operating Highlights

 
 
   
 
Three Months Ended  
 
December 31,
2020

September 30,
2020

December 31,
2019
 
 




   
  Container lease revenue

$

81,567


$

73,890


$

73,521

 
 




   
  Continuing operations GAAP




 
  Net income attributable to common stockholders

$

32,511


$

15,295


$

10,589

 
  Net income per share - diluted

$

1.81


$

0.86


$

0.60

 
 




   
  Continuing operations non-GAAP 1




 
  Adjusted net income attributable to common stockholders

$

31,622


$

18,701


$

10,589

 
  Adjusted net income per share - diluted

$

1.76


$

1.06


$

0.60

 
 




   
  Return on equity (continuing operations) 2

 

21.2%


 

12.7%


 

7.3%

 
 




   
  Total container fleet size in CEUs at end of period

 

1,798,520


 

1,732,547


 

1,727,816

 
  Container fleet utilization at end of period

 

99.6%


 

99.0%


 

98.3%

 

1 Refer to the “Reconciliation of GAAP Amounts to Non-GAAP Amounts” and “Use of Non-GAAP Financial Measures” set forth below.

2 Refer to the “Calculation of Return on Equity” set forth below.


Timothy Page, Interim President and Chief Executive Officer of CAI, commented, “We are very pleased with our results during the fourth quarter. Adjusted net income from continuing operations attributable to CAI common stockholders was a record $31.6 million, an increase of 69% compared to the third quarter of 2020. Container lease revenue was $82 million, also a record, and a 10% increase from the third quarter.

“During the quarter we delivered on all of our stated initiatives to maximize shareholder value:

  • We invested aggressively, leasing out $154 million in new long-dated leases with attractive yields and an average tenure of 11 years. Since the end of June 2020, we have invested $300 million and grown our container revenue assets by 6%. This investment, with its long-term attractive yields, combined with our industry leading utilization and low, long-term funding costs, resulted in an ROE of 21.2% in the fourth quarter.
  • We completed the divestiture of our non-container assets with the sale of our rail business, which closed on December 29, 2020. Combined with the sale of our logistics business in August, CAI is now 100% focused on its container leasing business.
  • We are actively returning capital to shareholders, increasing our quarterly dividend 20% from $0.25 to $0.30 per share.
  • We have repurchased 3.6% of our common shares since the beginning of the fourth quarter of 2020. In addition, the Board has expanded our share repurchase program by an additional two million shares.

“Our singular focus is to continue to prudently allocate capital to drive shareholder value.”

Mr. Page continued, “The global container market has been remarkable the past several quarters, demand has been unprecedented and container prices have risen to record levels. We expect container demand to remain strong throughout 2021. We have a robust forward order book and have commitments for the delivery of $340 million of new containers through early Q3 of 2021, and expect to secure additional commitments as we work with several customers to provide financing for their container production. We continue to focus on ultra-long life-cycle leases and because of the historically high container prices, are limiting our speculative production commitments.

“The Company continues to maintain its exceptional industry leading utilization. Average utilization in the fourth quarter was 99.3%. Utilization at the quarter end was 99.6%, and is currently 99.7%. Our continuing strong performance in utilization reflects the long-term nature of our contracts, our focus on tight contract redelivery terms and ongoing fleet management; all of which underscore the long-term committed nature of our cash flow.

“Our average cash interest rate at the end of the fourth quarter was 2.25%, and 83% of the Company’s debt is now fixed rate. CAI has a record level of liquidity which will allow us to take advantage of favorable container investment opportunities as well as continue to return capital to shareholders.

“We expect the record results we achieved in the fourth quarter to set the stage for a strong 2021. However, we anticipate that net income may be slightly lower in the first quarter as a result of two fewer billing days as compared to the fourth quarter and a probable reduction in container sales as result of a lack of available inventory due to our high utilization levels.”

Mr. Page concluded, “We are very optimistic about 2021. We enter the year with strong cash flows supported by long-term leases, virtually no off-lease equipment, and low, long-term fixed rate financing costs. As a result of these favorable factors, combined with our forward order book, we expect to continue to deliver exceptional ROE’s for our shareholders.”

Additional information on CAI's results, as well as comments on market trends, is available in a presentation posted today on the "Investors" section of CAI's website, www.capps.com.


CAI International, Inc.
Consolidated Balance Sheets
(In thousands, except share information)
(UNAUDITED)



 

December 31,
December 31,

2020


2019

Assets


Current assets


Cash

$

26,691

 


$

19,870

 

Cash held by variable interest entities

 

26,856

 


 

26,594

 

Current portion of restricted cash

 

600

 


 

-

 

Accounts receivable, net of allowance for doubtful accounts of $393 and $7,671


at December 31, 2020 and 2019, respectively

 

65,310

 


 

72,984

 

Current portion of net investment in finance leases

 

78,992

 


 

71,228

 

Prepaid expenses and other current assets

 

16,213

 


 

7,849

 

Assets held for sale

 

-

 


 

322,294

 

Total current assets

 

214,662

 


 

520,819

 

Restricted cash

 

12,355

 


 

26,775

 

Rental equipment, net of accumulated depreciation of $669,360 and $588,815


at December 31, 2020 and 2019, respectively

 

1,781,321

 


 

1,820,735

 

Net investment in finance leases

 

550,573

 


 

495,488

 

Financing receivable

 

48,888

 


 

30,693

 

Other non-current assets

 

4,833

 


 

7,255

 

Total assets

$

2,612,632

 


$

2,901,765

 




 
Liabilities and Stockholders' Equity


Current liabilities


Accounts payable

$

3,666

 


$

4,534

 

Accrued expenses and other current liabilities

 

29,598

 


 

25,206

 

Unearned revenue

 

3,029

 


 

6,405

 

Current portion of debt

 

183,448

 


 

218,094

 

Rental equipment payable

 

100,509

 


 

25,137

 

Liabilities held for sale

 

-

 


 

8,752

 

Total current liabilities

 

320,250

 


 

288,128

 

Debt

 

1,562,283

 


 

1,880,122

 

Derivative instruments

 

80

 


 

-

 

Deferred income tax liability

 

24,442

 


 

35,376

 

Other non-current liabilities

 

3,337

 


 

4,899

 

Total liabilities

 

1,910,392

 


 

2,208,525

 




 
Stockholders' equity


Preferred stock, par value $.0001 per share; authorized 10,000,000


8.50% Series A fixed-to-floating rate cumulative redeemable perpetual preferred


stock, issued and outstanding 2,199,610 shares, at liquidation preference

 

54,990

 


 

54,990

 

8.50% Series B fixed-to-floating rate cumulative redeemable perpetual preferred


stock, issued and outstanding 1,955,000 shares, at liquidation preference

 

48,875

 


 

48,875

 

Common stock: par value $.0001 per share; authorized 84,000,000 shares; issued and outstanding


17,562,779 and 17,479,127 shares at December 31, 2020 and 2019, respectively

 

2

 


 

2

 

Additional paid-in capital

 

100,795

 


 

102,709

 

Accumulated other comprehensive loss

 

(5,743

)


 

(6,630

)

Retained earnings

 

503,321

 


 

493,294

 

Total stockholders' equity

 

702,240

 


 

693,240

 

Total liabilities and stockholders' equity

$

2,612,632

 


$

2,901,765

 


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







 







 

Three Months Ended
Year Ended

December 31,
December 31,

2020


2019


2020


2019

Revenue






Container lease revenue

$

81,567

 


$

73,521

 


$

294,013

 


$

298,853

 








 
Operating expenses






Depreciation of rental equipment

 

27,791

 


 

27,536

 


 

109,856

 


 

111,917

 

Storage, handling and other expenses

 

3,453

 


 

4,902

 


 

17,758

 


 

17,533

 

Gain on sale of rental equipment

 

(4,350

)


 

(1,555

)


 

(10,204

)


 

(4,402

)

Administrative expenses

 

7,982

 


 

10,664

 


 

27,312

 


 

34,188

 

Total operating expenses

 

34,876

 


 

41,547

 


 

144,722

 


 

159,236

 








 
Operating income

 

46,691

 


 

31,974

 


 

149,291

 


 

139,617

 








 
Other expenses






Net interest expense

 

12,169

 


 

19,113

 


 

61,565

 


 

79,174

 

Write-off of debt issuance costs

 

2,297

 


 

-

 


 

6,135

 


 

-

 

Other (income) expense

 

(494

)


 

(224

)


 

(651

)


 

313

 

Total other expenses

 

13,972

 


 

18,889

 


 

67,049

 


 

79,487

 








 
Income before income taxes

 

32,719

 


 

13,085

 


 

82,242

 


 

60,130

 

Income tax expense

 

(2,000

)


 

288

 


 

1,800

 


 

4,783

 








 
Income from continuing operations

 

34,719

 


 

12,797

 


 

80,442

 


 

55,347

 

Loss from discontinued operations, net of income taxes

 

(20,473

)


 

(75

)


 

(52,709

)


 

(24,336

)

Net income

 

14,246

 


 

12,722

 


 

27,733

 


 

31,011

 

Preferred stock dividends

 

2,208

 


 

2,208

 


 

8,829

 


 

8,829

 

Net income attributable to CAI common stockholders

$

12,038

 


$

10,514

 


$

18,904

 


$

22,182

 








 
Amounts attributable to CAI common stockholders






Net income from continuing operations

$

32,511

 


$

10,589

 


$

71,613

 


$

46,518

 

Net loss from discontinued operations

 

(20,473

)


 

(75

)


 

(52,709

)


 

(24,336

)

Net income attributable to CAI common stockholders

$

12,038

 


$

10,514

 


$

18,904

 


$

22,182

 








 
Net income (loss) per share attributable to






CAI common stockholders






Basic






Continuing operations

$

1.84

 


$

0.61

 


$

4.08

 


$

2.62

 

Discontinued operations

 

(1.16

)


 

(0.01

)


 

(3.00

)


 

(1.37

)

Total basic

$

0.68

 


$

0.60

 


$

1.08

 


$

1.25

 

Diluted






Continuing operations

$

1.81

 


$

0.60

 


$

4.03

 


$

2.58

 

Discontinued operations

 

(1.14

)


 

(0.00

)


 

(2.97

)


 

(1.35

)

Total diluted

$

0.67

 


$

0.60

 


$

1.06

 


$

1.23

 








 
Weighted average shares outstanding






Basic

 

17,711

 


 

17,379

 


 

17,546

 


 

17,731

 

Diluted

 

17,949

 


 

17,667

 


 

17,763

 


 

18,011

 


CAI International, Inc.
Consolidated Statements of Cash Flows
(In thousands, except per share data)
(UNAUDITED)



 

Year Ended
December 31,

2020


2019

Cash flows from operating activities


Net income

$

27,733

 


$

31,011

 

Loss from discontinued operations, net of income taxes

 

(52,709

)


 

(24,336

)

Income from continuing operations

 

80,442

 


 

55,347

 

Adjustments to reconcile income from continuing operations to net cash provided by operating activities:


Depreciation

 

110,650

 


 

112,127

 

Amortization and write-off of debt issuance costs

 

9,440

 


 

3,921

 

Stock-based compensation expense

 

1,775

 


 

2,582

 

Unrealized (gain) loss on foreign exchange

 

(790

)


 

16

 

Gain on sale of rental equipment

 

(10,204

)


 

(4,402

)

Deferred income taxes

 

1,369

 


 

4,208

 

Bad debt (recovery) expense

 

(6,262

)


 

5,613

 

Changes in other operating assets and liabilities:


Accounts receivable

 

10,999

 


 

3,065

 

Prepaid expenses and other assets

 

(1,781

)


 

(2,067

)

Net investment in finance leases

 

74,444

 


 

65,688

 

Accounts payable, accrued expenses and other liabilities

 

348

 


 

6,633

 

Unearned revenue

 

(540

)


 

5

 

Net cash provided by operating activities of continuing operations

 

269,890

 


 

252,736

 

Net cash provided by operating activities of discontinued operations

 

7,126

 


 

1,261

 

Net cash provided by operating activities

 

277,016

 


 

253,997

 

Cash flows from investing activities


Purchase of rental equipment

 

(218,985

)


 

(316,857

)

Purchase of financing receivable

 

(30,846

)


 

(37,139

)

Proceeds from sale of rental equipment

 

101,297

 


 

81,692

 

Receipt of principal payments from financing receivable

 

6,368

 


 

2,720

 

Purchase of furniture, fixtures and equipment

 

(465

)


 

(1,954

)

Net cash used in investing activities of continuing operations

 

(142,631

)


 

(271,538

)

Net cash provided by investing activities of discontinued operations

 

108,663

 


 

123,093

 

Net cash provided by (used in) investing activities

 

(33,968

)


 

(148,445

)

Cash flows from financing activities


Proceeds from debt

 

1,186,537

 


 

705,045

 

Principal payments on debt

 

(1,349,918

)


 

(631,875

)

Debt issuance costs

 

(9,077

)


 

(839

)

Proceeds from issuance of common stock

 

163

 


 

-

 

Repurchase of common stock

 

(7,946

)


 

(34,118

)

Dividends paid to common stockholders

 

(8,877

)


 

-

 

Dividends paid to preferred stockholders

 

(8,829

)


 

(8,829

)

Exercise of stock options

 

4,000

 


 

1,285

 

Net cash (used in) provided by financing activities of continuing operations

 

(193,947

)


 

30,669

 

Net cash used in financing activities of discontinued operations

 

(55,935

)


 

(139,148

)

Net cash used in financing activities

 

(249,882

)


 

(108,479

)

Effect on cash of foreign currency translation

 

97

 


 

183

 

Net decrease in cash and restricted cash

 

(6,737

)


 

(2,744

)

Cash and restricted cash at beginning of the period

 

73,239

 


 

75,983

 

Cash and restricted cash at end of the period

$

66,502

 


$

73,239

 


CAI International, Inc.
Fleet Data
(UNAUDITED)








 






As of December 31,






2020


2019









 
Owned container fleet in TEUs




1,688,351

 


1,611,527

 

Managed container fleet in TEUs




56,298

 


69,650

 

Total container fleet in TEUs




1,744,649

 


1,681,177

 









 
Owned container fleet in CEUs




1,727,202

 


1,642,118

 

Managed container fleet in CEUs




71,318

 


85,698

 

Total container fleet in CEUs




1,798,520

 


1,727,816

 









 


Three Months Ended
Year Ended


December 31,
December 31,


2020


2019


2020


2019

Average Utilization







Container fleet utilization in CEUs

99.3

%


98.4

%


98.5

%


98.6

%

Owned container fleet utilization in CEUs

99.3

%


98.5

%


98.5

%


98.7

%









 






As of December 31,






2020


2019

Period Ending Utilization







Container fleet utilization in CEUs




99.6

%


98.3

%

Owned container fleet utilization in CEUs




99.6

%


98.4

%









 
Utilization of containers is computed by dividing the total units on lease in CEUs (cost equivalent units), by the total units in our fleet in CEUs.
The total container fleet excludes new units not yet leased and off-hire units designated for sale.








 
CEU is a ratio used to convert the actual number of containers in our fleet to a figure based on the relative purchase prices of our
various equipment types to that of a standard 20 foot dry van container. For example, the CEU ratio for a standard 40 foot dry van
container is 1.6, and a 40 foot high cube container is 1.7.

CAI International, Inc.
Reconciliation of GAAP Amounts to Non-GAAP Amounts
(In thousands, except per share data)
(UNAUDITED)







 



Three Months Ended



December 31,
September 30,
December 31,



2020


2020


2019








 
Amounts attributable to CAI common stockholders













 
Net income from continuing operations

$

32,511

 


$

15,295

 


$

10,589

 

Write-off of debt issuance costs

 

2,297

 


 

3,406

 


 

-

 

Revaluation of deferred tax liability as a result of a change in future state






apportionment caused by the sale of the logistics and rail businesses

 

(3,186

)


 

-

 


 

-

 

Adjusted net income from continuing operations

$

31,622

 


$

18,701

 


$

10,589

 








 
Diluted net income per share from continuing operations

$

1.81

 


$

0.86

 


$

0.60

 








 
Diluted adjusted net income per share from continuing operations

$

1.76

 


$

1.06

 


$

0.60

 








 
Weighted average diluted common shares outstanding

 

17,949

 


 

17,706

 


 

17,667

 








 
CAI International, Inc.
Calculation of Return on Equity
(In thousands)
(UNAUDITED)







 



Three Months Ended



December 31,
September 30,
December 31,



2020


2020


2019








 
Adjusted net income from continuing operations

$

31,622

 


$

18,701

 


$

10,589

 

Annualized adjusted net income from continuing operations

 

126,488

 


 

74,804

 


 

42,356

 








 
Average shareholders' equity 1

$

596,770

 


$

589,384

 


$

583,315

 








 
Return on equity

 

21.2

%


 

12.7

%


 

7.3

%








 
1 Average shareholders' equity was calculated using the quarter's beginning and ending shareholders' equity, excluding preferred stock.

Conference Call

A conference call to discuss the financial results for the fourth quarter of 2020 will be held on Tuesday, February 16, 2021 at 5:00 p.m. ET. The dial-in number for the teleconference is 1-888-398-8098; outside of the U.S., call 1-707-287-9363. The call may be accessed live over the internet (listen only) under the “Investors” section of CAI’s website, www.capps.com, by selecting “Q4 2020 Earnings Conference Call.” A webcast replay will be available for 30 days on the “Investors” section of our website.

Earnings Presentation

A presentation summarizing our fourth quarter 2020 results is available on the “Investors” section of our website, www.capps.com.

Use of Non-GAAP Financial Measures

This press release contains non-GAAP financial measures, and includes net income and earnings per share adjusted to reflect the impact of a non-recurring write-off of debt issuance costs and a non-recurring revaluation of deferred tax liability. This press release also refers to return on equity, which is calculated using the non-GAAP financial measure, adjusted net income. These measures are not in accordance with, or an alternative for, generally accepted accounting principles, or GAAP, and may be different from non-GAAP financial measures used by other companies. We believe the presentation of non-GAAP financial measures provides useful information to management and investors regarding various financial and business trends relating to our financial condition and results of operations, and that when GAAP financial measures are viewed in conjunction with non-GAAP financial measures, investors are provided with a more meaningful understanding of our ongoing operating performance. Management utilizes return on equity in evaluating how much profit the Company generates on the shareholders’ equity in the Company and believes it is useful for comparing the profitability of companies in the same industry. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for GAAP financial measures. To the extent this release contains historical non-GAAP financial measures, we have also provided a reconciliation to the corresponding GAAP financial measures for comparative purposes.

About CAI International, Inc.

CAI is one of the world’s leading transportation finance companies. As of December 31, 2020, CAI operated a worldwide fleet of approximately 1.8 million CEUs of containers. CAI operates through 14 offices located in 12 countries including the United States.

Forward-Looking Statements

This press release contains forward-looking statements regarding future events and the future performance of CAI, including but not limited to: management’s business outlook for the container leasing business, management’s decision to divest of CAI’s non-core businesses and management's outlook for growth of CAI’s leasing investments. These statements and others herein are forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, 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, expected growth of international trade, 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, growth in world trade and world container trade, the ability of CAI to convert letters of intent with its customers to binding contracts, potential to sell CAI’s securities to the public 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, 2019, its Quarterly Reports on Form 10-Q and its Current 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.

Contacts

David Morris, Chief Accounting Officer
(415) 788-0100
dmorris@capps.com