EXHIBIT 99.1
CAI International, Inc. Reports Results for the Second Quarter of 2008
SAN FRANCISCO, July 30, 2008 (PRIME NEWSWIRE) -- CAI International, Inc. (CAI) (NYSE:CAP) reported that net income in the second quarter of 2008 increased $2.2 million, or 53.7%, to $6.3 million, compared with net income of $4.1 million in the second quarter of 2007. Fully diluted earnings per share in the second quarter of 2008 was $0.37 with 17.1 million average shares outstanding, compared to a fully diluted earnings per share of $0.23 with 17.1 million average shares outstanding during the second quarter of 2007.
In the second quarter of 2008, CAI's revenue was $20.6 million, an increase of $6.6 million, or 47.1%, compared to the second quarter of 2007. The results for the second quarter of 2008 include two months of results of operations of Consent Equipment AB (CEAB) which CAI acquired on April 30, 2008. Container rental revenue increased $5.5 million (including $2.2 million of revenue from CEAB's operations), or 66.3%, to $13.8 million from $8.3 million in the second quarter of 2007. Management fee revenue was $3.0 million, a decrease of $0.3 million, or 8.8%, from $3.4 million of management fee revenue reported in the second quarter of 2007. Gain on sale of container portfolios increased $1.2 million, or 57.1%, to $3.3 million compared to $2.1 million in the second quarter of 2007. Finance lease income in the second quarter of 2008 increased $0.2 million, or 66.7%, to $0.5 million, compared to finance lease income of $0.3 million reported in the second quarter of 2007.
"I am very pleased with the continued good performance of our company," commented Masaaki (John) Nishibori, Chief Executive Officer of CAI. "Our average utilization for the second quarter of 2008 was 95.5% compared to 93.7% in the second quarter of 2007. We are now in the seasonally stronger part of our year and we would expect strong utilization through the remainder of the summer and fall seasons."
He continued, "We have seen significant demand from shipping lines for newly manufactured containers. We believe that the increase in new container prices since the beginning of this year as a result of higher manufacturing costs has made our customers decide to lease more equipment. Lease rates on new containers have also risen in conjunction with the rise in container prices."
Conference Call
A conference call to discuss financial results for the first quarter of 2008 will be held on Wednesday, July 30, 2008 at 5:00 p.m. EDT. The dial-in number for the teleconference is 1-800-390-5705; outside of the U.S., call 1-719-457-2087. The call may be accessed live over the internet (listen only) under the "Investors" tab of CAI's website, www.caiintl.com, by selecting "Q2 2008 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 June 30, 2008, the company operated a worldwide fleet of 791,000 TEU of containers through 13 offices located in 10 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 of operations and other performance measures (including utilization rates) to differ materially from current expectations including, but not limited to, expected economic conditions, customer demand, container prices, lease rates increased competition 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, 2007 and its interim reports on Form 10-Q. 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. Furthe rmore, 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)
June 30, Dec. 31,
2008 2007
--------- ---------
ASSETS
Cash $ 18,229 $ 8,433
Accounts receivable (owned fleet), net 15,704 12,995
Accounts receivable (managed fleet) 24,396 22,238
Current portion of direct finance
leases 4,930 4,610
Deposits, prepayments and other assets 3,135 3,375
Deferred tax assets 1,933 1,777
--------- ---------
Total current assets 68,327 53,428
--------- ---------
Container rental equipment, net 313,118 242,606
Net investment in direct finance
leases 13,162 6,356
Furniture, fixtures and equipment, net 459 468
Intangible assets, net 7,708 5,994
Interest rate swaps 101 --
Goodwill 50,247 50,247
--------- ---------
Total assets $ 453,122 $ 359,099
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 3,143 $ 3,060
Accrued expenses and other current
liabilities 5,526 3,275
Due to container investors 23,407 21,075
Unearned revenue 3,854 3,744
Current portion of capital lease
obligation 4,679 31
Rental equipment payable 30,216 25,446
--------- ---------
Total current liabilities 70,825 56,631
--------- ---------
Revolving credit facility 193,100 147,600
Deferred income tax liability 25,799 23,720
Capital lease obligation 19,862 --
--------- ---------
Total liabilities 309,586 227,951
--------- ---------
Stockholders' equity:
Common stock 2 2
Additional paid-in capital 91,488 90,988
Accumulated other comprehensive income 436 101
Retained earnings 51,610 40,057
--------- ---------
Total stockholders' equity 143,536 131,148
--------- ---------
Total liabilities and stockholders'
equity $ 453,122 $ 359,099
========= =========
CAI International, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenue:
Container rental
revenue $ 13,822 $ 8,280 $ 25,268 $ 16,160
Management fee revenue 3,030 3,368 5,940 6,787
Gain on sale of
container portfolios 3,295 2,096 6,217 4,991
Finance lease income 495 290 868 609
-------- -------- -------- --------
Total revenue 20,642 14,034 38,293 28,547
-------- -------- -------- --------
Operating expenses:
Depreciation of
container rental
equipment 3,720 1,761 6,732 3,451
Amortization of
intangible assets 389 309 701 617
Impairment of container
rental equipment 107 105 202 224
Gain on disposition of
used container
equipment (1,472) (1,043) (2,294) (2,048)
Gain on settlement of
lease obligation -- (694) -- (694)
Equipment rental expense -- 423 20 818
Storage, handling and
other expenses 1,350 719 2,224 1,390
Marketing, general and
administrative expense 5,117 3,947 9,521 7,249
-------- -------- -------- --------
Total operating
expenses 9,211 5,527 17,106 11,007
-------- -------- -------- --------
Operating income 11,431 8,507 21,187 17,540
Net Interest expense 1,957 1,996 3,933 5,226
-------- -------- -------- --------
Income before income
taxes 9,474 6,511 17,254 12,314
Income tax expense 3,210 2,400 5,701 4,591
-------- -------- -------- --------
Net income 6,264 4,111 11,553 7,723
Accretion of preferred
stock -- (5) - (5,577)
-------- -------- -------- --------
Net income available to
common shareholders $ 6,264 $ 4,106 $ 11,553 $ 2,146
======== ======== ======== ========
Net income (loss) per
share:
Basic $ 0.37 $ 0.29 $ 0.68 $ 0.17
Diluted $ 0.37 $ 0.23 $ 0.67 $ 0.17
Weighted average shares
outstanding:
Basic 17,113 13,954 17,111 12,278
Diluted 17,122 17,136 17,118 12,278
As of As of
June 30, June 30,
2008 2007
--------- ---------
(unaudited)
Managed fleet in TEUs 530,945 514,120
Owned fleet in TEUs 260,519 175,325
--------- ---------
Total 791,464 689,445
========= =========
Percentage of on-lease fleet on
long-term leases 69.6% 70.7%
Percentage of on-lease fleet on
short-term leases 27.9 27.5
Percentage of on-lease fleet on
finance leases 2.5 1.8
--------- ---------
Total 100.0% 100.0%
========= =========
Three Months Three Months
Ended Ended
June 30, June 30,
2008 2007
--------- ---------
(unaudited)
Average fleet utilization rate for
the period 95.5% 93.7%
CONTACT: CAI International, Inc.
Victor Garcia, Chief Financial Officer
(415) 788-0100
vgarcia@caiintl.com
