Exhibit 99.1
CAI International, Inc. Reports Results for the First Quarter of 2009
SAN FRANCISCO--(BUSINESS WIRE)--May 7, 2009--CAI International, Inc. (CAI) (NYSE:CAP) reported net income in the first quarter of 2009 of $4.0 million, a decrease of $1.3 million, or 24.5%, compared with net income of $5.3 million in the first quarter of 2008. Fully diluted earnings per share in the first quarter of 2009 were $0.22 with 17.9 million average shares outstanding, compared to fully diluted earnings per share of $0.31 with 17.1 million average shares outstanding during the first quarter of 2008. Adjusted EBITDA for the first quarter of 2009 was $13.2 million, compared to $14.1 million during the first quarter of 2008.
During the first quarter of 2009, CAI’s revenue remained unchanged at $17.6 million, compared to the first quarter of 2008. Container rental revenue increased $2.7 million, or 23.7%, to $14.1 million from $11.4 million in the first quarter of 2008. Management fee revenue was $2.5 million, a decrease of $0.4 million, or 13.8%, from $2.9 million of management fee revenue reported in the first quarter of 2008. Gain on sale of container portfolios decreased $2.6 million, or 89.7%, to $0.3 million, compared to $2.9 million in the first quarter of 2008. Finance lease income in the first quarter of 2009 increased $0.3 million, or 75%, to $0.7 million, compared to finance lease income of $0.4 million reported in the first quarter of 2008.
Masaaki (John) Nishibori, CEO of CAI, commented, “I am very pleased with our results for the first quarter of 2009. I am particularly proud of our continued strong profitability, despite the significant decline in world trade. I believe we were able to accomplish this because of our business model of having a balance between owned and managed units. Last year we executed well on our strategy of increasing both our owned and managed fleets and we were able to grow our business while maintaining a conservative leverage position.”
He continued, “Historically, utilization declines in the first quarter and the decline in this past quarter was exacerbated by the turbulent global economy. The redelivery of equipment resulted in our utilization averaging 85.5% in the first quarter of 2009, as compared to utilization of 91.9% during the fourth quarter of 2008. Because of the increased level of container redelivery, some of our operating expenses such as storage and handling increased as compared to the first quarter of 2008. Although we had an increase in storage and handling expenses, we benefited during the quarter from lower interest expense as a result of the decline in interest rates. Our results were also helped by a lower effective tax rate as the proportion of our profitability coming from of our overseas subsidiaries increased due to the investments made in 2008. Considering the environment in which we were operating, and our limited trading income, I am particularly pleased to be able to report $4.0 million in net income.”
“Secondary prices of containers have declined in certain regions such as in South East Asia. However, we find the average prices remain at relatively attractive levels and during the first quarter we reported a gain on disposition of $790,000, in line with last year’s first quarter result.”
| CAI International, Inc. |
| Consolidated Balance Sheets |
| (In thousands, except share information) |
| (UNAUDITED) |
| | March 31, | | December 31, |
| ASSETS | | | 2009 | | | | 2008 | |
| | | | |
| Cash | | $ | 12,156 | | | $ | 28,535 | |
| Accounts receivable (owned fleet), net | | | 15,507 | | | | 16,224 | |
| Accounts receivable (managed fleet) | | | 22,503 | | | | 24,683 | |
| Current portion of direct finance leases | | | 5,715 | | | | 6,108 | |
| Prepaid expenses | | | 2,521 | | | | 2,954 | |
| Deferred tax assets | | | 1,924 | | | | 1,924 | |
| Other current assets | | | 4,051 | | | | 563 | |
| Total current assets | | | 64,377 | | | | 80,991 | |
| | | | |
| Container rental equipment, net | | | 303,845 | | | | 310,397 | |
| Net investment in direct finance leases | | | 13,005 | | | | 14,003 | |
| Furniture, fixtures and equipment, net | | | 575 | | | | 629 | |
| Intangible assets, net | | | 6,103 | | | | 6,608 | |
| Total assets | | $ | 387,905 | | | $ | 412,628 | |
| | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | |
| | | | |
| Accounts payable | | $ | 6,586 | | | $ | 4,682 | |
| Accrued expenses and other current liabilities | | | 2,646 | | | | 3,747 | |
| Due to container investors | | | 17,789 | | | | 23,847 | |
| Unearned revenue | | | 4,621 | | | | 4,542 | |
| Current portion of capital lease obligation | | | 2,948 | | | | 4,514 | |
| Rental equipment payable | | | 774 | | | | 3,905 | |
| Total current liabilities | | | 35,364 | | | | 45,237 | |
| | | | | | | | |
| Revolving credit facility | | | 190,200 | | | | 208,200 | |
| Capital lease obligation | | | 17,996 | | | | 18,070 | |
| Deferred income tax liability | | | 25,213 | | | | 25,348 | |
| Income taxes payable | | | 2,004 | | | | 1,983 | |
| | | | |
| Total liabilities | | | 270,777 | | | | 298,838 | |
| | | | |
| Stockholders' equity: | | | | |
| Common stock | | | 2 | | | | 2 | |
| Additional paid-in capital | | | 102,930 | | | | 102,706 | |
| Accumulated other comprehensive income | | | (2,863 | ) | | | (2,022 | ) |
| Retained earnings | | | 17,059 | | | | 13,104 | |
| Total stockholders' equity | | | 117,128 | | | | 113,790 | |
| Total liabilities and stockholders' equity | | $ | 387,905 | | | $ | 412,628 | |
| CAI International, Inc. |
| Consolidated Statements of Income |
| (In thousands, except per share data) |
| (UNAUDITED) |
| | | | |
| | Three Months Ended March 31, |
| | | 2009 | | | | 2008 | |
| Revenue: | | | | |
| Container rental revenue | | $ | 14,119 | | | $ | 11,446 | |
| Management fee revenue | | | 2,493 | | | | 2,910 | |
| Gain on sale of container portfolios | | | 256 | | | | 2,922 | |
| Finance lease income | | | 708 | | | | 373 | |
| Total revenue | | | 17,576 | | | | 17,651 | |
| | | | |
| Operating expenses: | | | | |
| Depreciation of container rental equipment | | | 4,371 | | | | 3,012 | |
| Amortization of intangible assets | | | 408 | | | | 312 | |
| Impairment of container rental equipment | | | 36 | | | | 95 | |
| Gain on disposition of used container equipment | | | (790 | ) | | | (822 | ) |
| Equipment rental expense | | | - | | | | 20 | |
| Storage, handling and other expenses | | | 1,710 | | | | 874 | |
| Marketing, general and administrative expense | | | 4,915 | | | | 4,448 | |
| Loss (gain) on foreign exchange | | | 80 | | | | (44 | ) |
| Total operating expenses | | | 10,730 | | | | 7,895 | |
| | | | |
| Operating income | | | 6,846 | | | | 9,756 | |
| | | | |
| Interest expense | | | 1,302 | | | | 2,023 | |
| Interest income | | | (4 | ) | | | (47 | ) |
| Net interest expense | | | 1,298 | | | | 1,976 | |
| | | | |
| Income before income taxes | | | 5,548 | | | | 7,780 | |
| | | | |
| Income tax expense | | | 1,593 | | | | 2,491 | |
| | | | |
| Net income | | $ | 3,955 | | | $ | 5,289 | |
| | | | |
| Net income per share: | | | | |
| Basic | | $ | 0.22 | | | $ | 0.31 | |
| Diluted | | $ | 0.22 | | | $ | 0.31 | |
| | | | |
| Weighted average shares outstanding : | | | | |
| Basic | | | 17,897 | | | | 17,109 | |
| Diluted | | | 17,897 | | | | 17,109 | |
| | | | |
| Other financial data: | | | | |
| Adjusted EBITDA | | $ | 13,238 | | | $ | 14,063 | |
| | As of March 31, 2009 | | As of March 31, 2008 |
| | (unaudited) |
| Managed fleet in TEUs | | 533,599 | | 526,031 |
| Owned fleet in TEUs | | 243,574 | | 247,347 |
| | | | |
| Total | | 777,173 | | 773,378 |
Reconciliation of Non-GAAP Items
Adjusted net income is defined as net income before impairment of goodwill.
EBITDA is defined as net income before interest, income taxes, depreciation and amortization. Adjusted EBITDA is EBITDA plus principal payments from finance leases. We believe EBITDA and adjusted EBITDA are helpful in understanding our past financial performance as a supplement to net income and other performance measures calculated in conformity with accounting principles generally accepted in the United States (“GAAP”). The following table provides a reconciliation of EBITDA and adjusted EBITDA to net income, the most comparable performance measure under GAAP (in thousands):
| | Three Months Ended March 31, |
| | | 2009 | | | 2008 |
| Net income | | $ | 3,955 | | $ | 5,289 |
| Add: | | | | |
| Net interest expense | | | 1,298 | | | 1,976 |
| Depreciation | | | 4,425 | | | 3,048 |
Amortization of intangibles and impairment of container rental equipment | | | 444 | | | 407 |
| Income tax expense | | | 1,593 | | | 2,491 |
| Principal payments from direct finance leases | | | 1,523 | | | 852 |
| | | | |
| Adjusted EBITDA | | $ | 13,238 | | $ | 14,063 |
Conference Call
A conference call to discuss financial results for the first quarter of 2009 will be held on Thursday, May 7, 2009 at 5:00 p.m. EDT. The dial-in number for the teleconference is 1-888-208-1815; outside of the U.S., call 1-719-325-2261. The call may be accessed live over the internet (listen only) under the “Investors” tab of CAI’s website, www.caiintl.com, by selecting “Q1 2009 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 March 31, 2009, the company operated a worldwide fleet of 777,000 TEU of containers through 13 offices located in 11 countries.
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 (including utilization rates) to differ materially from current expectations including, but not limited to, expected economic conditions, availability of credit on commercially favorable terms or at all, customer demand, 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, 2008 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.
Victor Garcia, 415-788-0100
Chief Financial Officer
vgarcia@caiintl.com
