Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'CAI International, Inc. | ' |
Entity Central Index Key | '0001388430 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 22,242,256 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Current assets | ' | ' | ||
Cash | $20,071 | $31,141 | ||
Cash attributable to variable interest entities | 19,984 | 14,600 | ||
Accounts receivable (owned fleet), net of allowance for doubtful accounts of $499 and $503 at March 31, 2014 and December 31, 2013, respectively | 44,342 | 41,226 | ||
Accounts receivable (managed fleet) | 11,109 | 10,646 | ||
Current portion of direct finance leases | 15,515 | 12,998 | ||
Prepaid expenses | 14,141 | 14,803 | ||
Other current assets | 5,557 | 5,553 | ||
Total current assets | 130,719 | 130,967 | ||
Restricted cash | 8,998 | 9,253 | ||
Rental equipment, net of accumulated depreciation of $227,003 and $210,165 at March 31, 2014 and December 31, 2013, respectively | 1,471,493 | 1,465,092 | ||
Net investment in direct finance leases | 79,016 | 68,210 | ||
Furniture, fixtures and equipment, net of accumulated depreciation of $1,759 and $1,697 at March 31, 2014 and December 31, 2013, respectively | 1,274 | 1,390 | ||
Intangible assets, net of accumulated amortization of $4,737 and $4,638 at March 31, 2014 and December 31, 2013, respectively | 577 | 677 | ||
Total assets | 1,692,077 | [1] | 1,675,589 | [1] |
Current liabilities | ' | ' | ||
Accounts payable | 7,374 | 8,002 | ||
Accrued expenses and other current liabilities | 4,866 | 6,230 | ||
Due to container investors | 13,357 | 14,815 | ||
Unearned revenue | 6,987 | 6,862 | ||
Current portion of debt | 73,880 | 74,080 | ||
Current portion of capital lease obligations | 1,815 | 1,921 | ||
Rental equipment payable | 23,043 | 45,181 | ||
Total current liabilities | 131,322 | 157,091 | ||
Debt | 1,086,432 | 1,058,628 | ||
Deferred income tax liability | 41,376 | 41,378 | ||
Capital lease obligations | 3,004 | 3,366 | ||
Total liabilities | 1,262,134 | [2] | 1,260,463 | [2] |
Stockholders' equity | ' | ' | ||
Common stock: par value $.0001 per share; authorized 84,000,000 shares; issued and outstanding 22,242,256 and 22,240,673 shares at March 31, 2014 and December 31, 2013, respectively | 2 | 2 | ||
Additional paid-in capital | 184,700 | 184,263 | ||
Accumulated other comprehensive loss | -2,291 | -2,356 | ||
Retained earnings | 246,894 | 232,623 | ||
Total CAI stockholders' equity | 429,305 | 414,532 | ||
Non-controlling interest | 638 | 594 | ||
Total stockholders' equity | 429,943 | 415,126 | ||
Total liabilities and stockholders' equity | $1,692,077 | $1,675,589 | ||
[1] | Table of ContentsTotal assets at March 31, 2014 and December 31, 2013 include the following assets of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs: Cash, $19,984 and $14,600; Net investment in direct finance leases, $141 and $137; and Rental equipment net of accumulated depreciation, $88,045 and $84,107, respectively. | |||
[2] | Total liabilities at March 31, 2014 and December 31, 2013 include the following VIE liabilities for which the VIE creditors do not have recourse to CAI International, Inc.: Debt, $109,003 and $101,269, respectively. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets | ' | ' |
Allowance for doubtful accounts (owned fleet) | $499 | $503 |
Accumulated depreciation on container rental equipment | 227,003 | 210,165 |
Accumulated depreciation on furniture, fixtures and equipment | 1,759 | 1,697 |
Accumulated amortization on intangible assets | 4,737 | 4,638 |
Cash attributable to variable interest entities | 19,984 | 14,600 |
Net investment in direct financial leases | 141 | 137 |
Rental equipment attributable to variable interest entities, net of accumulated depreciation | 88,045 | 84,107 |
Liabilities and Stockholders' Equity | ' | ' |
Collateralized financing obligations | $109,003 | $101,269 |
Stockholders' equity | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 84,000,000 | 84,000,000 |
Common stock, shares issued (in shares) | 22,242,256 | 22,240,673 |
Common stock, shares outstanding (in shares) | 22,242,256 | 22,240,673 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenue | ' | ' |
Rental revenue | $50,684 | $46,623 |
Management fee revenue | 1,525 | 2,230 |
Finance lease income | 2,055 | 2,106 |
Total revenue | 54,264 | 50,959 |
Operating expenses | ' | ' |
Depreciation of rental equipment | 18,663 | 15,333 |
Amortization of intangible assets | 99 | 227 |
Gain on disposition of used rental equipment | -1,790 | -2,636 |
Storage, handling and other expenses | 5,993 | 4,299 |
Marketing, general and administrative expense | 6,706 | 6,188 |
Loss on foreign exchange | 164 | -300 |
Total operating expenses | 29,835 | 23,111 |
Operating income | 24,429 | 27,848 |
Interest expense | 8,795 | 8,404 |
Write-off of deferred financing costs | ' | 1,108 |
Interest income | -4 | -3 |
Net interest expense | 8,791 | 9,509 |
Net income before income taxes and non-controlling interest | 15,638 | 18,339 |
Income tax expense | 1,407 | 2,272 |
Net income | 14,231 | 16,067 |
Net income attributable to non-controlling interest | 40 | ' |
Net income attributable to CAI common stockholders | $14,271 | $16,067 |
Net income per share attributable to CAI common stockholders | ' | ' |
Basic (in dollars per share) | $0.64 | $0.73 |
Diluted (in dollars per share) | $0.63 | $0.71 |
Weighted average shares outstanding | ' | ' |
Basic (in shares) | 22,213 | 22,085 |
Diluted (in shares) | 22,658 | 22,668 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ' | ' |
Net income | $14,231 | $16,067 |
Other comprehensive income, net of tax: | ' | ' |
Foreign currency translation adjustments | 65 | -1,179 |
Comprehensive income | 14,296 | 14,888 |
Comprehensive loss attributable to non-controlling interest | 40 | ' |
Comprehensive income attributable to CAI common stockholders | $14,336 | $14,888 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $14,231 | $16,067 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 18,790 | 15,465 |
Amortization of debt issuance costs | 687 | 1,692 |
Amortization of intangible assets | 99 | 227 |
Stock-based compensation expense | 409 | 336 |
Loss (gain) on foreign exchange | 100 | -271 |
Gain on disposition of used rental equipment | -1,790 | -2,636 |
Deferred income taxes | -2 | -101 |
Bad debt expense | ' | 170 |
Changes in other operating assets and liabilities: | ' | ' |
Accounts receivable | -3,418 | 429 |
Prepaid expenses and other assets | -29 | 68 |
Accounts payable, accrued expenses and other current liabilities | -2,119 | -4,120 |
Due to container investors | -1,458 | -2,304 |
Unearned revenue | 125 | -90 |
Net cash provided by operating activities | 25,625 | 24,932 |
Cash flows from investing activities | ' | ' |
Purchase of rental equipment | -73,202 | -103,725 |
Net proceeds from disposition of used rental equipment | 11,070 | 8,475 |
Purchase of furniture, fixtures and equipment | -11 | -52 |
Receipt of principal payments from direct financing leases | 3,346 | 2,612 |
Net cash used in investing activities | -58,797 | -92,690 |
Cash flows from financing activities | ' | ' |
Proceeds from debt | 66,700 | 367,670 |
Principal payments on debt | -39,592 | -278,269 |
Debt issuance costs | ' | -6,214 |
Decrease (increase) in restricted cash | 255 | -5,642 |
Stock issuance costs | ' | -148 |
Exercise of stock options | 28 | 1,108 |
Net cash provided by financing activities | 27,391 | 78,505 |
Effect on cash of foreign currency translation | 95 | -1,650 |
Net (decrease) increase in cash | -5,686 | 9,097 |
Cash at beginning of the period | 45,741 | 17,671 |
Cash at end of the period | 40,055 | 26,768 |
Cash paid during the period for: | ' | ' |
Income taxes | 315 | 2,502 |
Interest | 9,333 | 8,447 |
Supplemental disclosure of non-cash investing and financing activity | ' | ' |
Transfer of rental equipment to direct finance lease | $16,669 | $3,025 |
The_Company_And_Nature_Of_Oper
The Company And Nature Of Operations | 3 Months Ended |
Mar. 31, 2014 | |
The Company And Nature Of Operations [Abstract] | ' |
The Company And Nature Of Operations | ' |
CAI INTERNATIONAL, INC. | |
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS | |
(1)The Company and Nature of Operations | |
Organization | |
CAI International, Inc. and its subsidiaries (collectively, CAI or the Company), operate primarily in the international intermodal marine cargo container leasing business. The Company also owns a fleet of railcars, which it leases in North America. The Company generates revenue from two reportable segments: equipment leasing and equipment management. The equipment leasing segment specializes primarily in the ownership and leasing of intermodal containers, while the equipment management segment manages equipment for third-party investors. The Company leases its equipment principally to international container shipping lines located throughout the world. The Company sells equipment primarily to third-party investor groups and provides management services to those investors in return for a management fee. | |
The Company’s common stock is traded on the New York Stock Exchange under the symbol “CAP”. The Company’s corporate headquarters are located in San Francisco, California. | |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries, and its 80% owned subsidiary, CAIJ, Inc. (CAIJ). The equity attributable to the minority interest in CAIJ is shown as a non-controlling interest on the Company’s consolidated balance sheets as of March 31, 2014 and December 31, 2013, and the related net income is presented as net income attributable to non-controlling interest on the Company’s consolidated statement of income for the three months ended March 31, 2014. The non-controlling interest in CAIJ was immaterial and not included in the consolidated statement of income for the three months ended March 31, 2013. All significant intercompany balances and transactions have been eliminated in consolidation. | |
In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the Company’s financial position as of March 31, 2014 and December 31, 2013, the Company’s results of operations for the three months ended March 31, 2014 and 2013, and the Company’s cash flows for the three months ended March 31, 2014 and 2013. The results of operations and cash flows for the periods presented are not necessarily indicative of the results of operations or cash flows which may be reported for the remainder of 2014 or in any future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2013, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 28, 2014. | |
Accounting_Policies_And_Recent
Accounting Policies And Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies And Recent Accounting Pronouncements [Abstract] | ' |
Accounting Policies And Recent Accounting Pronouncements | ' |
(2)Accounting Policies and Recent Accounting Pronouncements | |
(a)Accounting Policies | |
There were no changes to the Company’s accounting policies during the three months ended March 31, 2014. See Note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on February 28, 2014, for a description of the Company’s significant accounting policies. | |
(b)Recent Accounting Pronouncements | |
There have been no recent accounting pronouncements that would have a significant impact on the Company’s financial statements. | |
Consolidation_Of_Variable_Inte
Consolidation Of Variable Interest Entities As A Non-Controlling Interest | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Consolidation Of Variable Interest Entities As A Non-Controlling Interest [Abstract] | ' | |||
Consolidation Of Variable Interest Entities As A Non-Controlling Interest | ' | |||
CAI INTERNATIONAL, INC. | ||||
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) | ||||
(3)Consolidation of Variable Interest Entities as a Non-Controlling Interest | ||||
The Company regularly performs a review of its container fund arrangements with investors to determine whether a fund is a variable interest entity (VIE) and whether the Company has a variable interest that provides it with a controlling financial interest and is the primary beneficiary of the VIE in accordance with ASC 810, Consolidation. If the fund is determined to be a VIE, a further analysis is performed to determine if the Company is a primary beneficiary of the VIE and meets both of the following criteria under Paragraph 14A of ASC 810: | ||||
· | It has power to direct the activities of a VIE that most significantly impact the entity’s economic performance; and | |||
· | It has the obligation to absorb losses of the entity that could be potentially significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. | |||
If in the Company’s judgment both of the above criteria are met, the VIE’s financial statements are included in the Company’s consolidated financial statements as required under ASC 810. The equity attributable to the VIE is shown as a non-controlling interest on the Company’s consolidated balance sheet and the after tax result attributable to its operations is shown as a net income or loss attributable to non-controlling interest on the Company’s consolidated statement of income. | ||||
The Company currently enters into two types of container fund arrangements with investors which are reviewed under ASC 810, Consolidation. These arrangements include container funds that the Company manages for investors and container funds that have entered into financing arrangements with investors. Included among several of the funds that the Company manages, and all of the funds under financing arrangements, are Japanese container funds that were established by a related party under separate investment agreements allowed under Japanese commercial laws (see Note 11). Each of the funds is financed by unrelated Japanese third party investors. | ||||
Managed Container Funds | ||||
All container funds under management by the Company are considered VIEs because as manager of the funds, the Company has the power to direct the activities that most significantly impact the entity’s economic performance including the leasing and managing of containers owned by the funds. The fees earned for arranging, managing and establishing the funds are not significant to the expected returns of the funds so the Company does not have a variable interest in the funds. The rights to receive benefits and obligations to absorb losses that could potentially be significant to the funds belong to the third party investors, so the Company concluded that it is not the primary beneficiary of the funds. The Company recognizes gain on sale of containers to the unconsolidated VIEs as sales in the ordinary course of business. For the three months ended March 31, 2014 and 2013, the Company sold no container portfolios to the Japanese VIEs. | ||||
Collateralized Financing Obligations | ||||
As of March 31, 2014, the Company has transferred containers with a total net book value of $102.7 million at the time of transfer to Japanese investor funds while concurrently entering into lease agreements for the same containers, under which the Company leases the containers back from the Japanese investors. In accordance with ASC 840, Sale-Leaseback Transactions, the Company concluded these were financing transactions under which sale-leaseback accounting was not applicable. | ||||
The container funds under financing arrangements are considered VIEs under ASC 810 because as lessee of the funds, the Company has the power to direct the activities that most significantly impact each entity’s economic performance including the leasing and managing of containers owned by the funds. The terms of the transactions include options for the Company to purchase the containers from the funds at a fixed price. As a result of the residual interest resulting from the fixed price call option, the Company concluded that it may absorb a significant amount of the variability associated with the funds’ anticipated economic performance and, as a result, the Company has a variable interest in the funds. As the Company has the power to direct the activities that most significantly impact the economic performance of the VIEs and the variable interest provides the Company with the right to receive benefits from the entity that could potentially be significant to the funds, the Company determined that it is the primary beneficiary of these VIEs and included the VIEs assets and liabilities as of March 31, 2014 and December 31, 2013, and the results of the VIE’s operations and cash flows for the three months ended March 31, 2014 and 2013 in the Company’s consolidated financial statements. | ||||
CAI INTERNATIONAL, INC. | ||||
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) | ||||
The containers that were transferred to the Japanese investor funds had a net book value of $88.2 million as of March 31, 2014. The container equipment, together with $20.0 million of cash held by the investor funds, has been included on the Company’s consolidated balance sheet with the offsetting liability related to the funds presented as collateralized financing obligations of $109.0 million in the debt section of the Company’s consolidated balance sheet. See Note 6(e) for additional information. No gain or loss was recognized by the Company on the initial consolidation of the VIEs. | ||||
Net_Investment_In_Direct_Finan
Net Investment In Direct Finance Leases | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Net Investment In Direct Finance Leases [Abstract] | ' | ||||||
Net Investment In Direct Finance Leases | ' | ||||||
(4)Net Investment in Direct Finance Leases | |||||||
The following table represents the components of the Company’s net investment in direct finance leases (in thousands): | |||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Gross finance lease receivables (1) | $ | 119,126 | $ | 103,887 | |||
Unearned income (2) | -24,595 | -22,679 | |||||
Net investment in direct finance leases | $ | 94,531 | $ | 81,208 | |||
-1 | At the inception of the lease, the Company records the total minimum lease payments, executory costs, if any, and unguaranteed residual value as gross finance lease receivables. The gross finance lease receivables are reduced as customer payments are received. There was no unguaranteed residual value at March 31, 2014 and approximately $0.1 million at December 31, 2013 included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of March 31, 2014 and December 31, 2013. | ||||||
-2 | The difference between the gross finance lease receivables and the cost of the equipment or carrying amount at the lease inception is recorded as unearned income. Unearned income together with initial direct costs, are amortized to income over the lease term so as to produce a constant periodic rate of return. There were no unamortized initial direct costs as of March 31, 2014 and December 31, 2013. | ||||||
In order to estimate the allowance for losses contained in the gross finance lease receivables, the Company reviews the credit worthiness of its customers on an ongoing basis. The review includes monitoring credit quality indicators, the aging of customer receivables and general economic conditions. | |||||||
The categories of gross finance lease receivables based on the Company's internal customer credit ratings can be described as follows: | |||||||
Tier 1— These customers are typically large international shipping lines that have been in business for many years and have world-class operating capabilities and significant financial resources. In most cases, the Company has had a long commercial relationship with these customers and currently maintains regular communication with them at several levels of management, which provides the Company with insight into the customer's current operating and financial performance. In the Company's view, these customers have the greatest ability to withstand cyclical down turns and would likely have greater access to needed capital than lower-rated customers. The Company views the risk of default for Tier 1 customers to range from minimal to modest. | |||||||
Tier 2— These customers are typically either smaller shipping lines or freight forwarders with less operating scale or with a high degree of financial leverage, and accordingly the Company views these customers as subject to higher volatility in financial performance over the business cycle. The Company generally expects these customers to have less access to capital markets or other sources of financing during cyclical down turns. The Company views the risk of default for Tier 2 customers as moderate. | |||||||
Tier 3— Customers in this category exhibit volatility in payments on a regular basis. | |||||||
CAI INTERNATIONAL, INC. | |||||||
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) | |||||||
Based on the above categories, the Company's gross finance lease receivables were as follows (in thousands): | |||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Tier 1 | $ | 97,293 | $ | 85,990 | |||
Tier 2 | 21,833 | 17,897 | |||||
Tier 3 | - | - | |||||
$ | 119,126 | $ | 103,887 | ||||
Contractual maturities of the Company's gross finance lease receivables subsequent to March 31, 2014 for the years ending March 31 are as follows (in thousands): | |||||||
2015 | $ | 23,493 | |||||
2016 | 23,239 | ||||||
2017 | 19,990 | ||||||
2018 | 25,527 | ||||||
2019 | 20,220 | ||||||
2020 and thereafter | 6,657 | ||||||
$ | 119,126 | ||||||
Intangible_Assets
Intangible Assets | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Intangible Assets [Abstract] | ' | ||||||||
Intangible Assets | ' | ||||||||
(5)Intangible Assets | |||||||||
The Company amortizes intangible assets on a straight line basis over their estimated useful lives as follows: | |||||||||
Trademarks | 1-10 years | ||||||||
Contracts – owned equipment | 5-7 years | ||||||||
Total amortization expense was $0.1 million and $0.2 million for the three months ended March 31, 2014 and 2013, respectively. | |||||||||
Intangible assets as of March 31, 2014 and December 31, 2013 were as follows (in thousands): | |||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||
31-Mar-14 | |||||||||
Trademarks | $ | 1,278 | $ | -995 | $ | 283 | |||
Contracts- owned equipment | 4,036 | -3,742 | 294 | ||||||
$ | 5,314 | $ | -4,737 | $ | 577 | ||||
31-Dec-13 | |||||||||
Trademarks | $ | 1,278 | $ | -962 | $ | 316 | |||
Contracts- owned equipment | 4,037 | -3,676 | 361 | ||||||
$ | 5,315 | $ | -4,638 | $ | 677 | ||||
Debt_And_Capital_Lease_Obligat
Debt And Capital Lease Obligations | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Debt And Capital Lease Obligations [Abstract] | ' | ||||||||||||||||||
Debt And Capital Lease Obligations | ' | ||||||||||||||||||
CAI INTERNATIONAL, INC. | |||||||||||||||||||
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) | |||||||||||||||||||
(6) Debt and Capital Lease Obligations | |||||||||||||||||||
Debt | |||||||||||||||||||
Details of the Company’s debt as of March 31, 2014 and December 31, 2013 were as follows (dollars in thousands): | |||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||
Outstanding | Average | Outstanding | Average | Agreement | |||||||||||||||
Reference | Current | Long-term | Interest | Current | Long-term | Interest | Terminates | ||||||||||||
(a)(i) | Revolving credit facility | $ | - | $ | 271,500 | 1.90% | $ | - | $ | 235,000 | 1.90% | Mar-18 | |||||||
(a)(ii) | Revolving credit facility - Rail | - | 56,969 | 2.40% | - | 54,469 | 2.40% | Jun-15 | |||||||||||
(b)(i) | Term loan | 8,200 | 26,850 | 2.30% | 8,400 | 27,300 | 2.30% | Apr-18 | |||||||||||
(b)(ii) | Term loan | 7,500 | 110,000 | 2.50% | 7,500 | 111,875 | 2.50% | Dec-16 | |||||||||||
(b)(iii) | Term loan | 9,940 | 116,835 | 2.20% | 9,940 | 119,320 | 2.20% | Apr-17 | |||||||||||
(c) | Senior secured notes | 8,240 | 82,400 | 4.90% | 8,240 | 86,520 | 4.90% | Sep-22 | |||||||||||
(d) | Asset backed notes | 40,000 | 312,875 | 3.40% | 40,000 | 322,875 | 3.40% | Mar-28 | |||||||||||
(e) | Collateralized financing obligations | - | 109,003 | 1.00% | - | 101,269 | 1.00% | Mar-17 | |||||||||||
Total Debt | $ | 73,880 | $ | 1,086,432 | $ | 74,080 | $ | 1,058,628 | |||||||||||
(a)Revolving Credit Facilities | |||||||||||||||||||
Revolving credit facilities consist of the following: | |||||||||||||||||||
(i) On March 15, 2013, the Company entered into a Third Amended and Restated Revolving Credit Agreement with a syndicate of banks to finance the acquisition of container rental equipment and for general working capital purposes. As of March 31, 2014, the maximum commitment under the revolving credit facility was $760.0 million. The Company’s revolving credit facility may be increased up to a maximum of $960.0 million, in accordance with the terms of the agreement, so long as no default or event of default exists either before or immediately after giving effect to the increase. There is a commitment fee on the unused amount of the total commitment, payable quarterly in arrears. The agreement provides that swing line loans (short-term borrowings of up to $10.0 million in the aggregate that are payable within 10 business days or at maturity date, whichever comes earlier) and standby letters of credit (up to $15.0 million in the aggregate) will be available to the Company. These credit commitments are part of, and not in addition to, the total commitment provided under the agreement. The interest rates vary depending upon whether the loans are characterized as Base Rate loans or Eurodollar rate loans, as defined in the revolving credit agreement. In addition to various financial and other covenants, the Company’s revolving credit facility also includes certain restrictions on the Company’s ability to incur other indebtedness or pay dividends to stockholders. As of March 31, 2014, the Company was in compliance with the terms of the revolving credit facility. | |||||||||||||||||||
As of March 31, 2014, the Company had $488.4 million in availability under the revolving credit facility (net of $0.1 million in letters of credit) subject to its ability to meet the collateral requirements under the agreement governing borrowing under the facility. The entire amount of the facility drawn at any time plus accrued interest and fees is callable on demand in the event of certain specified events of default. | |||||||||||||||||||
The Company’s revolving credit facility, including any amounts drawn on the facility, is secured by substantially all of the assets of the Company (not otherwise used as security for its other credit facilities) including the equipment owned by the Company, the underlying leases thereon and the Company’s interest in any money received under such contracts. | |||||||||||||||||||
(ii) On June 7, 2012, the Company and CAI Rail Inc. (CAI Rail), a wholly-owned subsidiary of the Company, entered into a revolving credit agreement with a consortium of banks to finance the acquisition of railcars. As of March 31, 2014, the maximum credit commitment under the revolving credit facility was $85.0 million. | |||||||||||||||||||
Borrowings under the credit facility bear interest at a variable rate. The interest rates vary depending upon whether the loans are characterized as Base Rate loans or Eurodollar rate loans, as defined in the revolving credit agreement. For domestic base rate loans, the interest rate is equal to the highest of (i) the daily federal funds open rate as published by the Federal Reserve Bank of New York and (ii) the administrative agent’s published “Reference Rate”, in each case plus a margin based on certain conditions. | |||||||||||||||||||
CAI INTERNATIONAL, INC. | |||||||||||||||||||
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) | |||||||||||||||||||
As of March 31, 2014, CAI Rail had $28.0 million in availability under the revolving credit facility, subject to its ability to meet the collateral requirements under the agreement governing the facility. The entire amount of the facility drawn at any time plus accrued interest and fees is callable on demand in the event of certain specified events of default. | |||||||||||||||||||
The agreement governing CAI Rail’s revolving credit facility contains various financial and other covenants. As of March 31, 2014, CAI Rail was in compliance with the terms of the revolving credit facility. CAI Rail’s revolving credit facility, including any amounts drawn on the facility, is secured by all of the assets of CAI Rail and is guaranteed by the Company. | |||||||||||||||||||
(b)Term Loans | |||||||||||||||||||
Term loans consist of the following: | |||||||||||||||||||
(i) On August 20, 2009, the Company entered into a $10.0 million five-year loan agreement with the Development Bank of Japan (DBJ). The loan is payable in 19 quarterly installments of $0.2 million starting October 31, 2009 and a final payment of $6.2 million on July 31, 2014. On March 22, 2013, the Company entered into an additional $30.0 million five-year loan agreement with DBJ. The loan is payable in 19 quarterly installments of $0.5 million starting July 31, 2013 and a final payment of $21.5 million on April 30, 2018. Both loans bear interest at variable rates based on LIBOR. As of March 31, 2014, the loans had a combined balance of $35.1 million. | |||||||||||||||||||
(ii) On December 20, 2010, the Company entered into a term loan agreement with a consortium of banks. Under this loan agreement, the Company was eligible to borrow up to $300.0 million, subject to certain borrowing conditions, which amount is secured by certain assets of the Company’s wholly-owned foreign subsidiaries. The loan agreement is an amortizing facility with a term of six years. The interest rates vary depending upon whether the loans are characterized as Base Rate loans or Eurodollar rate loans, as defined in the term loan agreement. The loan bears a variable interest rate based on LIBOR for Eurodollar loans, and Base Rate for base rate loans. The Base Rate is defined as the highest of (i) the federal funds rate plus 1/2 of 1.0%, (ii) the prime rate (as published in The Wall Street Journal), and (iii) the Eurodollar rate (for three-month loans) plus 1.0%. | |||||||||||||||||||
On March 28, 2013, the term loan agreement was amended to: (a) reduce the principal balance of the loan from $249.4 million to $125.0 million through payment of $124.4 million from the proceeds of the $229.0 million fixed-rate asset-backed notes issued by the Company’s indirect wholly-owned subsidiary, CAL Funding II Limited (see Note 6(d) below); (b) reduce the interest rate on the remaining loan balance; and (c) revise certain covenants under the term loan agreement to provide increased flexibility to the Company. Quarterly payments of principal have been reduced to $1.9 million with the balance of the unpaid principal due on December 20, 2016. As of March 31, 2014, the term loan had a balance of $117.5 million. | |||||||||||||||||||
(iii) On April 11, 2012, the Company entered into a term loan agreement with a consortium of banks. The agreement, which was amended on August 31, 2012 and May 30, 2013, provides for a five year term loan of up to $142.0 million, subject to certain borrowing conditions, which amount is secured by certain assets of the Company. The commitment under the loan may be increased to a maximum of $200.0 million under certain conditions described in the agreement. The outstanding principal amounts under the term loan bear interest based on LIBOR, amortized quarterly, and require quarterly payments equal to 1.75% multiplied by the outstanding principal amount at such time. The facility contains various financial and other covenants. The full $142.0 million has been drawn and was primarily used to repay outstanding amounts under the revolving credit facility. All unpaid amounts then outstanding are due and payable on April 11, 2017. As of March 31, 2014, the loan had a balance of $126.8 million. | |||||||||||||||||||
(c)Senior Secured Notes | |||||||||||||||||||
On September 13, 2012, Container Applications Limited (CAL), a wholly-owned subsidiary of the Company, entered into a Note Purchase Agreement with certain institutional investors, pursuant to which CAL issued $103.0 million of its 4.90% Senior Secured Notes due September 13, 2022 (the Notes) to the investors. The Notes are guaranteed by the Company and secured by certain assets of CAL and the Company. | |||||||||||||||||||
The Notes bear interest at 4.9% per annum, due and payable semiannually on March 13 and September 13 of each year, commencing on March 13, 2013. In addition, CAL is required to make certain principal payments on March 13 and September 13 of each year, commencing on March 13, 2013. Any unpaid principal and interest is due and payable on September 13, 2022. The Note Purchase Agreement provides that CAL may prepay at any time all or any part of the Notes in an amount not less than 10% of the aggregate principal amount of the Notes then outstanding. As of March 31, 2014, the Notes had a balance of $90.6 million. | |||||||||||||||||||
CAI INTERNATIONAL, INC. | |||||||||||||||||||
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) | |||||||||||||||||||
(d)Asset-Backed Notes | |||||||||||||||||||
On October 18, 2012, CAL Funding II Limited (CAL II), a wholly-owned indirect subsidiary of CAI, issued $171.0 million of 3.47% fixed rate asset-backed notes (Series 2012-1 Asset-Backed Notes). Principal and interest on the Series 2012-1 Asset-Backed Notes is payable monthly commencing on November 26, 2012, and the Series 2012-1 Asset-Backed Notes mature in October 2027. The proceeds from the Series 2012-1 Asset-Backed Notes were used to repay part of the Company’s borrowings under its senior revolving credit facility. As of March 31, 2014, the Series 2012-1 Asset-Backed Notes had a balance of $146.8 million. | |||||||||||||||||||
On March 28, 2013, CAL II issued $229.0 million of 3.35% fixed rate asset-backed notes (Series 2013-1 Asset-Backed Notes). Principal and interest on the Series 2013-1 Asset-Backed Notes is payable monthly commencing on April 25, 2013, and the Series 2013-1 Asset-Backed Notes mature in March 2028. The proceeds from the Series 2013-1 Asset-Backed Notes were used partly to reduce the balance of the Company’s term loan as described in Note 6 (b)(ii) above, and to partially pay down the Company’s senior revolving credit facility. The Series 2013-1 Asset-Backed Notes had a balance of $206.1 million as of March 31, 2014. | |||||||||||||||||||
The agreements under each of the asset-backed notes described above require the Company to maintain a restricted cash account to cover payment of the obligations. As of March 31, 2014, the restricted cash account had a balance of $9.0 million. | |||||||||||||||||||
(e)Collateralized Financing Obligations | |||||||||||||||||||
As of March 31, 2014, the Company had collateralized financing obligations of $109.0 million (see Note 3). The obligations had an average interest rate of 1.0% as of March 31, 2014 with maturity dates between June 2015 and March 2017. The debt is secured by a pool of containers covered under the financing arrangements. | |||||||||||||||||||
The Company's term loans, senior secured notes, asset-backed notes and collateralized financing obligations are each secured by specific pools of rental equipment and other assets owned by the Company, the underlying leases thereon and the Company’s interest in any money received under such contracts. The agreements relating to all of the Company’s debt contain various financial and other covenants. As of March 31, 2014, the Company was in compliance with all of its debt covenants. | |||||||||||||||||||
Capital Lease Obligations | |||||||||||||||||||
As of March 31, 2014, the Company had capital lease obligations of $4.8 million. The underlying obligations are denominated in U.S. Dollars and Euros at floating interest rates averaging 2.3% as of March 31, 2014 with maturity dates between June 2014 and June 2019. The loans are secured by containers covered by the lease obligations. | |||||||||||||||||||
StockBased_Compensation_Plan
Stock-Based Compensation Plan | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Stock-Based Compensation Plan [Abstract] | ' | |||||||||
Stock-Based Compensation Plan | ' | |||||||||
(7) Stock–Based Compensation Plan | ||||||||||
Stock Options | ||||||||||
The following table summarizes the Company’s stock option activities for the three months ended March 31, 2014 and 2013: | ||||||||||
Three Months Ended March 31, | ||||||||||
2014 | 2013 | |||||||||
Weighted | Weighted | |||||||||
Average | Average | |||||||||
Number of | Exercise | Number of | Exercise | |||||||
Shares | Price | Shares | Price | |||||||
Options outstanding at January 1 | 1,263,485 | $ | 14.84 | 1,335,680 | $ | 13.41 | ||||
Options granted - employees | - | $ | - | - | $ | - | ||||
Options granted - directors | - | $ | - | - | $ | - | ||||
Options forfeited - employees | -5,417 | $ | 22.55 | -834 | $ | 5.60 | ||||
Options exercised - employees | -1,583 | $ | 17.77 | -88,661 | 12.50 | |||||
Options outstanding at March 31 | 1,256,485 | $ | 14.80 | 1,246,185 | $ | 13.48 | ||||
Options exercisable | 1,065,373 | $ | 13.23 | 981,310 | $ | 11.99 | ||||
Weighted average remaining term | 5.0 years | 5. 7 years | ||||||||
CAI INTERNATIONAL, INC. | ||||||||||
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) | ||||||||||
Stock options granted to employees have a vesting period of four years from grant date, with 25% vesting after one year, and 1/48th vesting each month thereafter until fully vested. Stock options granted to independent directors vest in one year. | ||||||||||
The Company recorded stock-based compensation expense of $0.4 million and $0.3 million for the three months ended March 31, 2014 and 2013, respectively. As of March 31, 2014, the remaining unamortized stock-based compensation cost relating to stock options granted to the Company’s employees and independent directors was approximately $1.7 million which is to be recognized over the remaining weighted average vesting period of approximately 2.0 years. | ||||||||||
The aggregate intrinsic value of stock options exercised during the three months ended March 31, 2014 was less than $0.1 million. The aggregate intrinsic value of all options outstanding as of March 31, 2014 was $12.6 million based on the closing price of the Company’s common stock of $24.67 per share on March 31, 2014, the last trading day of the quarter. | ||||||||||
Restricted Stock | ||||||||||
During the year ended December 31, 2013, the Company granted 28,150 shares of restricted common stock valued at $0.7 million to certain employees. The restricted stock was valued based on the closing price of the Company’s stock on the date of grant. The restricted stock has a vesting period of 4 years. | ||||||||||
In January 2014, 625 shares with a grant date fair value of $22.99 per share were vested while 1,500 shares with a grant date fair value of $26.41 per share were forfeited, leaving a balance of 26,025 unvested shares as of March 31, 2014. | ||||||||||
During the three months ended March 31, 2014, no additional shares of restricted stock were granted. The Company recognized less than $0.1 million of stock compensation expense relating to restricted stock for both the three months ended March 31, 2014 and 2013. As of March 31, 2014, unamortized stock compensation expense relating to restricted stock was $0.6 million to be recognized over the remaining average vesting period of 3.2 years. | ||||||||||
Stock-based compensation expense is recorded as a component of marketing, general and administrative expense in the Company’s consolidated statements of income with a corresponding credit to additional paid-in capital in the Company’s consolidated balance sheet. | ||||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
(8)Income Taxes | |
The consolidated income tax expense for the three months ended March 31, 2014 and 2013 was determined based upon estimates of the Company’s consolidated effective income tax rates for the years ending December 31, 2014 and 2013, respectively. The difference between the consolidated effective income tax rate and the U.S. federal statutory rate is primarily attributable to state income taxes, foreign income taxes and the effect of certain permanent differences. | |
The Company’s effective tax rate for the three months ended March 31, 2014 was 9.0% compared to 12.4% for the three months ended March 31, 2013. The lower effective tax rate for the three months ended March 31, 2014 was due primarily to higher pretax income from foreign operations where statutory rates are lower than the U.S. income tax rates. | |
The Company recognizes in the financial statements a liability for tax uncertainty if it is more likely than not that the position will be sustained on audit, based on the technical merits of the position. As of March 31, 2014, the Company had unrecognized tax benefits of $0.2 million, which if recognized, would reduce the Company’s effective tax rate. Total accrued interest relating to unrecognized tax benefits was less than $0.1 million as of March 31, 2014. The Company does not believe the total amount of unrecognized tax benefits as of March 31, 2014 will increase or decrease for the remainder of 2014. | |
In June 2012, the Company received notification from the Internal Revenue Service (IRS) that the Company’s 2008 and 2009 U.S. federal income tax returns had been selected for examination. In June 2013, the Company received notification from the IRS that it had completed its examination for both 2008 and 2009, making changes to taxable income for those years. The changes did not materially alter the Company’s income tax for those years. | |
Fair_Value_Of_Financial_Instru
Fair Value Of Financial Instruments | 3 Months Ended |
Mar. 31, 2014 | |
Fair Value Of Financial Instruments [Abstract] | ' |
Fair Value Of Financial Instruments | ' |
CAI INTERNATIONAL, INC. | |
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) | |
(9)Fair Value of Financial Instruments | |
The carrying amounts reported in the consolidated balance sheets for cash, accounts receivable and accounts payable approximate fair value because of the immediate or short-term maturity of these financial instruments. The Company’s senior secured notes of $90.6 million, asset-backed notes of $352.9 million and collateralized financing obligations of $109.0 million as of March 31, 2014 were estimated to have a fair value of approximately $89.5 million, $349.3 million and $106.4 million, respectively, based on the fair value of estimated future payments calculated using prevailing interest rates. The fair value of these financial instruments would be categorized as Level 3 of the fair value hierarchy. Management believes that the balances of the Company’s revolving credit facilities of $328.5 million, term loans totaling $279.3 million, net investment in direct finance leases of $94.5 million and capital lease obligations of $4.8 million approximate their fair values as of March 31, 2014. The fair value of these financial instruments would be categorized as Level 3 of the fair value hierarchy. | |
Commitments_And_Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments And Contingencies [Abstract] | ' |
Commitments And Contingencies | ' |
(10)Commitments and Contingencies | |
In addition to its debt obligations described in Note 6 above, the Company had commitments to purchase approximately $61.8 million of rental equipment as of March 31, 2014. The Company also utilizes certain office facilities and equipment under long-term non-cancellable operating lease agreements with total future minimum lease payments of approximately $4.0 million as of March 31, 2014. | |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
(11)Related Party Transactions | |
The Company has transferred legal ownership of certain containers to Japanese container funds which were established by Japan Investment Adviser Co., Ltd. (JIA) and CAIJ, Inc. (CAIJ). CAIJ is an 80%-owned subsidiary of CAI with the remaining 20% owned by JIA. Prior to September 30, 2013, JIA was owned and controlled by the Managing Director of CAIJ. Prior to the transfer of containers from the Company, the container funds received contributions from unrelated Japanese investors, under separate Japanese investment agreements allowed under Japanese commercial laws. The contributions were used to purchase container equipment from the Company. Under the terms of the agreements, the CAI-related Japanese entities manage the activities of certain Japanese entities but may outsource the whole or part of each operation to a third party. Pursuant to its services agreements with investors, the Japanese container funds have outsourced the general management of their operations to CAIJ. The Japanese container funds have also entered into equipment management service agreements and financing arrangements whereby the Company manages the leasing activity of containers owned by the Japanese container funds. | |
As described in Note 3, the Japanese managed container funds and financing arrangements are considered VIEs. However, with the exception of the financing arrangements described in Note 3, the Company does not consider its interest in the managed Japanese container funds to be a variable interest. As such, the Company did not consolidate the assets and liabilities, results of operations or cash flows of these funds in its consolidated financial statements. The sale of containers to the unconsolidated Japanese VIEs has been recorded on the Company’s books as a sale in the ordinary course of business. | |
As described in Note 3, the Company has included in its consolidated financial statements, the assets and liabilities, results of operations, and cash flows of the financing arrangements, in accordance with ASC 810, Consolidation. | |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Segment Information [Abstract] | ' | |||||||||||
Segment Information | ' | |||||||||||
(12)Segment Information | ||||||||||||
The Company operates in one industry segment, equipment leasing, but has two reportable business segments: equipment leasing and equipment management. The equipment leasing segment derives its revenue primarily from the ownership and leasing of containers to container shipping lines and freight forwarders. The equipment management segment derives its revenue from management fees earned from portfolios of equipment and associated leases which are managed on behalf of third-party investors. The Company also derives revenue from the sale of equipment to third-party investors who in turn enter into management agreements with the Company. There are no inter-segment revenues. | ||||||||||||
With the exception of amortization of intangible assets and marketing, general and administrative expenses (MG&A), operating expenses are directly attributable to the equipment leasing segment. Amortization of intangible assets relating to owned and third party contracts is charged directly to the equipment leasing segment and equipment management segment, respectively. The amortization of remaining intangible assets relating to the trademark is allocated to the segments based on the average number of twenty-foot equivalent units (TEUs) of containers in each segment during the year. | ||||||||||||
CAI INTERNATIONAL, INC. | ||||||||||||
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) | ||||||||||||
MG&A expenses are allocated to each segment based on either revenue or the number of TEUs in each segment, depending on the function of the department which incurred the expense, after directly assigning MG&A expenses relating to CAI Consent Sweden AB (Consent) and CAI Rail to the equipment leasing segment and MG&A expenses relating to CAIJ and CAI Deutschland GmbH to the equipment management segment. | ||||||||||||
The Company does not allocate interest income and income tax expense to its segments. | ||||||||||||
Total assets of the equipment management segment consist of managed accounts receivable and a portion of the intangible asset relating to trademarks (determined based on the percentage of average TEUs of managed containers to total average TEUs). The remaining balance of total assets is allocated to the equipment leasing business. | ||||||||||||
The following tables show condensed segment information for the three months ended March 31, 2014 and 2013, reconciled to the Company’s net income before income taxes and non-controlling interest as shown in its consolidated statements of income (in thousands): | ||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||
Equipment Leasing | Equipment Management | Unallocated | Total | |||||||||
Total revenue | $ | 52,739 | $ | 1,525 | $ | - | $ | 54,264 | ||||
Total operating expenses | 29,157 | 678 | - | 29,835 | ||||||||
Operating income | 23,582 | 847 | - | 24,429 | ||||||||
Net interest expense | 8,795 | - | -4 | 8,791 | ||||||||
Net income before income taxes and non-controlling interest | $ | 14,787 | $ | 847 | $ | 4 | $ | 15,638 | ||||
Total assets | $ | 1,680,899 | $ | 11,178 | $ | - | $ | 1,692,077 | ||||
Three Months Ended March 31, 2013 | ||||||||||||
Equipment Leasing | Equipment Management | Unallocated | Total | |||||||||
Total revenue | $ | 48,729 | $ | 2,230 | $ | - | $ | 50,959 | ||||
Total operating expenses | 21,734 | 1,377 | - | 23,111 | ||||||||
Operating income | 26,995 | 853 | - | 27,848 | ||||||||
Net interest expense | 9,512 | - | -3 | 9,509 | ||||||||
Net income before income taxes and non-controlling interest | $ | 17,483 | $ | 853 | $ | 3 | $ | 18,339 | ||||
Total assets | $ | 1,522,856 | $ | 12,824 | $ | - | $ | 1,535,680 | ||||
Geographic Data | ||||||||||||
The Company’s container lessees use containers for their global trade utilizing many worldwide trade routes. The Company earns its revenue from international carriers when the containers are in use and carrying cargo around the world. Most of the Company’s leasing related revenue is denominated in U.S. dollars. Since all of the Company’s containers are used internationally and typically no container is domiciled in one particular place for a prolonged period of time, all of the Company’s long-lived container assets are considered to be international with no single country of use. | ||||||||||||
The Company’s railcars, with a net book value of $76.9 million as of March 31, 2014, are used primarily to transport cargo within North America. | ||||||||||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Earnings Per Share | ' | |||||
(13)Earnings Per Share | ||||||
Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if their effect is anti-dilutive. | ||||||
CAI INTERNATIONAL, INC. | ||||||
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) | ||||||
The following table sets forth the reconciliation of basic and diluted net income per share for the three months ended March 31, 2014 and 2013 (in thousands, except per share data): | ||||||
Three Months Ended March 31, | ||||||
2014 | 2013 | |||||
Numerator | ||||||
Net income attributable to CAI common stockholders used | ||||||
in the calculation of basic and diluted earnings per share | $ | 14,271 | $ | 16,067 | ||
Denominator | ||||||
Weighted-average shares used in the calculation of basic earnings per share | 22,213 | 22,085 | ||||
Effect of dilutive securities: | ||||||
Stock options and restricted stock | 445 | 583 | ||||
Weighted-average shares used in the calculation of diluted earnings per share | 22,658 | 22,668 | ||||
Net income per share attributable to CAI common stockholders: | ||||||
Basic | $ | 0.64 | $ | 0.73 | ||
Diluted | $ | 0.63 | $ | 0.71 | ||
The calculation of diluted earnings per share for the three months ended March 31, 2014 excluded from the denominator 364,333 shares of common stock options because their effect would have been anti-dilutive. The calculation of diluted earnings per share for the three months ended March 31, 2013 excluded from the denominator 180,000 shares of common stock options, because their effect would have been anti-dilutive. | ||||||
Accounting_Policies_And_Recent1
Accounting Policies And Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies And Recent Accounting Pronouncements [Abstract] | ' |
Recent Accounting Pronouncements | ' |
(b)Recent Accounting Pronouncements | |
There have been no recent accounting pronouncements that would have a significant impact on the Company’s financial statements. | |
Net_Investment_In_Direct_Finan1
Net Investment In Direct Finance Leases (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Net Investment In Direct Finance Leases [Abstract] | ' | ||||||
Components Of Entity's Net Investment In Finance Leases | ' | ||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Gross finance lease receivables (1) | $ | 119,126 | $ | 103,887 | |||
Unearned income (2) | -24,595 | -22,679 | |||||
Net investment in direct finance leases | $ | 94,531 | $ | 81,208 | |||
-1 | At the inception of the lease, the Company records the total minimum lease payments, executory costs, if any, and unguaranteed residual value as gross finance lease receivables. The gross finance lease receivables are reduced as customer payments are received. There was no unguaranteed residual value at March 31, 2014 and approximately $0.1 million at December 31, 2013 included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of March 31, 2014 and December 31, 2013. | ||||||
-2 | The difference between the gross finance lease receivables and the cost of the equipment or carrying amount at the lease inception is recorded as unearned income. Unearned income together with initial direct costs, are amortized to income over the lease term so as to produce a constant periodic rate of return. There were no unamortized initial direct costs as of March 31, 2014 and December 31, 2013. | ||||||
Gross Finance Lease Receivables By Categories Of Customers | ' | ||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Tier 1 | $ | 97,293 | $ | 85,990 | |||
Tier 2 | 21,833 | 17,897 | |||||
Tier 3 | - | - | |||||
$ | 119,126 | $ | 103,887 | ||||
Contractual Maturities Of Gross Finance Lease Receivables | ' | ||||||
2015 | $ | 23,493 | |||||
2016 | 23,239 | ||||||
2017 | 19,990 | ||||||
2018 | 25,527 | ||||||
2019 | 20,220 | ||||||
2020 and thereafter | 6,657 | ||||||
$ | 119,126 | ||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Intangible Assets [Abstract] | ' | ||||||||
Useful Life Of Finite-lived Intangible Assets | ' | ||||||||
Trademarks | 1-10 years | ||||||||
Contracts – owned equipment | 5-7 years | ||||||||
Intangible Assets | ' | ||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||
31-Mar-14 | |||||||||
Trademarks | $ | 1,278 | $ | -995 | $ | 283 | |||
Contracts- owned equipment | 4,036 | -3,742 | 294 | ||||||
$ | 5,314 | $ | -4,737 | $ | 577 | ||||
31-Dec-13 | |||||||||
Trademarks | $ | 1,278 | $ | -962 | $ | 316 | |||
Contracts- owned equipment | 4,037 | -3,676 | 361 | ||||||
$ | 5,315 | $ | -4,638 | $ | 677 | ||||
Debt_And_Capital_Lease_Obligat1
Debt And Capital Lease Obligations (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Debt And Capital Lease Obligations [Abstract] | ' | ||||||||||||||||||
Details Of Debt | ' | ||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||
Outstanding | Average | Outstanding | Average | Agreement | |||||||||||||||
Reference | Current | Long-term | Interest | Current | Long-term | Interest | Terminates | ||||||||||||
(a)(i) | Revolving credit facility | $ | - | $ | 271,500 | 1.90% | $ | - | $ | 235,000 | 1.90% | Mar-18 | |||||||
(a)(ii) | Revolving credit facility - Rail | - | 56,969 | 2.40% | - | 54,469 | 2.40% | Jun-15 | |||||||||||
(b)(i) | Term loan | 8,200 | 26,850 | 2.30% | 8,400 | 27,300 | 2.30% | Apr-18 | |||||||||||
(b)(ii) | Term loan | 7,500 | 110,000 | 2.50% | 7,500 | 111,875 | 2.50% | Dec-16 | |||||||||||
(b)(iii) | Term loan | 9,940 | 116,835 | 2.20% | 9,940 | 119,320 | 2.20% | Apr-17 | |||||||||||
(c) | Senior secured notes | 8,240 | 82,400 | 4.90% | 8,240 | 86,520 | 4.90% | Sep-22 | |||||||||||
(d) | Asset backed notes | 40,000 | 312,875 | 3.40% | 40,000 | 322,875 | 3.40% | Mar-28 | |||||||||||
(e) | Collateralized financing obligations | - | 109,003 | 1.00% | - | 101,269 | 1.00% | Mar-17 | |||||||||||
Total Debt | $ | 73,880 | $ | 1,086,432 | $ | 74,080 | $ | 1,058,628 | |||||||||||
StockBased_Compensation_Plan_T
Stock-Based Compensation Plan (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Stock-Based Compensation Plan [Abstract] | ' | |||||||||
Summary Of Stock Option Plan Activity | ' | |||||||||
Three Months Ended March 31, | ||||||||||
2014 | 2013 | |||||||||
Weighted | Weighted | |||||||||
Average | Average | |||||||||
Number of | Exercise | Number of | Exercise | |||||||
Shares | Price | Shares | Price | |||||||
Options outstanding at January 1 | 1,263,485 | $ | 14.84 | 1,335,680 | $ | 13.41 | ||||
Options granted - employees | - | $ | - | - | $ | - | ||||
Options granted - directors | - | $ | - | - | $ | - | ||||
Options forfeited - employees | -5,417 | $ | 22.55 | -834 | $ | 5.60 | ||||
Options exercised - employees | -1,583 | $ | 17.77 | -88,661 | 12.50 | |||||
Options outstanding at March 31 | 1,256,485 | $ | 14.80 | 1,246,185 | $ | 13.48 | ||||
Options exercisable | 1,065,373 | $ | 13.23 | 981,310 | $ | 11.99 | ||||
Weighted average remaining term | 5.0 years | 5. 7 years | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Segment Information [Abstract] | ' | |||||||||||
Segment Reporting Information By Container Leasing And Container Management Segments | ' | |||||||||||
Three Months Ended March 31, 2014 | ||||||||||||
Equipment Leasing | Equipment Management | Unallocated | Total | |||||||||
Total revenue | $ | 52,739 | $ | 1,525 | $ | - | $ | 54,264 | ||||
Total operating expenses | 29,157 | 678 | - | 29,835 | ||||||||
Operating income | 23,582 | 847 | - | 24,429 | ||||||||
Net interest expense | 8,795 | - | -4 | 8,791 | ||||||||
Net income before income taxes and non-controlling interest | $ | 14,787 | $ | 847 | $ | 4 | $ | 15,638 | ||||
Total assets | $ | 1,680,899 | $ | 11,178 | $ | - | $ | 1,692,077 | ||||
Three Months Ended March 31, 2013 | ||||||||||||
Equipment Leasing | Equipment Management | Unallocated | Total | |||||||||
Total revenue | $ | 48,729 | $ | 2,230 | $ | - | $ | 50,959 | ||||
Total operating expenses | 21,734 | 1,377 | - | 23,111 | ||||||||
Operating income | 26,995 | 853 | - | 27,848 | ||||||||
Net interest expense | 9,512 | - | -3 | 9,509 | ||||||||
Net income before income taxes and non-controlling interest | $ | 17,483 | $ | 853 | $ | 3 | $ | 18,339 | ||||
Total assets | $ | 1,522,856 | $ | 12,824 | $ | - | $ | 1,535,680 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Reconciliation Of Basic And Diluted Net Income Per Share | ' | |||||
Three Months Ended March 31, | ||||||
2014 | 2013 | |||||
Numerator | ||||||
Net income attributable to CAI common stockholders used | ||||||
in the calculation of basic and diluted earnings per share | $ | 14,271 | $ | 16,067 | ||
Denominator | ||||||
Weighted-average shares used in the calculation of basic earnings per share | 22,213 | 22,085 | ||||
Effect of dilutive securities: | ||||||
Stock options and restricted stock | 445 | 583 | ||||
Weighted-average shares used in the calculation of diluted earnings per share | 22,658 | 22,668 | ||||
Net income per share attributable to CAI common stockholders: | ||||||
Basic | $ | 0.64 | $ | 0.73 | ||
Diluted | $ | 0.63 | $ | 0.71 | ||
The_Company_And_Nature_Of_Oper1
The Company And Nature Of Operations (Details) | 3 Months Ended |
Mar. 31, 2014 | |
segment | |
The Company And Nature Of Operations [Abstract] | ' |
Number of reportable segments | 2 |
Ownership interest in subsidiary (in percentage) | 80.00% |
Consolidation_Of_Variable_Inte1
Consolidation Of Variable Interest Entities As A Non-Controlling Interest (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Variable Interest Entity [Line Items] | ' | ' |
Cash | $20,071,000 | $31,141,000 |
Contribution of cash and other assets | 130,719,000 | 130,967,000 |
Non-controlling interest | 638,000 | 594,000 |
Net income attributable to non-controlling interest | -40,000 | ' |
Net book value of containers transferred | 1,274,000 | 1,390,000 |
Collateralized financing obligations | 1,086,432,000 | 1,058,628,000 |
Variable Interest Entity, Primary Beneficiary [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Sale and leaseback transaction of containers | 102,700,000 | ' |
Net book value of containers transferred | 88,200,000 | ' |
Cash held by investor funds | 20,000,000 | ' |
Collateralized financing obligations | $109,000,000 | ' |
Net_Investment_In_Direct_Finan2
Net Investment In Direct Finance Leases (Components Of Entity's Net Investment In Finance Leases) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
Net Investment In Direct Finance Leases [Abstract] | ' | ' | ||
Gross finance lease receivables | $119,126,000 | [1] | $103,887,000 | [1] |
Unearned income | -24,595,000 | [2] | -22,679,000 | [2] |
Net investment in finance leases | 94,531,000 | 81,208,000 | ||
Unguaranteed residual value | 0 | 100,000 | ||
Executory costs | 0 | 0 | ||
Unamortized initial direct costs | $0 | $0 | ||
[1] | At the inception of the lease, the Company records the total minimum lease payments, executory costs, if any, and unguaranteed residual value as gross finance lease receivables. The gross finance lease receivables are reduced as customer payments are received.B B There was no unguaranteed residual value at March 31, 2014 and approximately $0.1 million at December 31, 2013 included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of March 31, 2014 and December 31, 2013. | |||
[2] | The difference between the gross finance lease receivables and the cost of the equipment or carrying amount at the lease inception is recorded as unearned income. Unearned income together with initial direct costs, are amortized to income over the lease term so as to produce a constant periodic rate of return. There were no unamortized initial direct costs as of March 31, 2014 and December 31, 2013. |
Net_Investment_In_Direct_Finan3
Net Investment In Direct Finance Leases (Gross Finance Lease Receivables By Categories Of Customers) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Gross Finance Lease Receivables [Line Items] | ' | ' | ||
Gross finance lease receivables | $119,126 | [1] | $103,887 | [1] |
Tier 1 [Member] | ' | ' | ||
Gross Finance Lease Receivables [Line Items] | ' | ' | ||
Gross finance lease receivables | 97,293 | 85,990 | ||
Tier 2 [Member] | ' | ' | ||
Gross Finance Lease Receivables [Line Items] | ' | ' | ||
Gross finance lease receivables | $21,833 | $17,897 | ||
[1] | At the inception of the lease, the Company records the total minimum lease payments, executory costs, if any, and unguaranteed residual value as gross finance lease receivables. The gross finance lease receivables are reduced as customer payments are received.B B There was no unguaranteed residual value at March 31, 2014 and approximately $0.1 million at December 31, 2013 included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of March 31, 2014 and December 31, 2013. |
Net_Investment_In_Direct_Finan4
Net Investment In Direct Finance Leases (Contractual Maturities Of Gross Finance Lease Receivables) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Net Investment In Direct Finance Leases [Abstract] | ' | ' | ||
2015 | $23,493 | ' | ||
2016 | 23,239 | ' | ||
2017 | 19,990 | ' | ||
2018 | 25,527 | ' | ||
2019 | 20,220 | ' | ||
2020 and thereafter | 6,657 | ' | ||
Gross finance lease receivables | $119,126 | [1] | $103,887 | [1] |
[1] | At the inception of the lease, the Company records the total minimum lease payments, executory costs, if any, and unguaranteed residual value as gross finance lease receivables. The gross finance lease receivables are reduced as customer payments are received.B B There was no unguaranteed residual value at March 31, 2014 and approximately $0.1 million at December 31, 2013 included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of March 31, 2014 and December 31, 2013. |
Intangible_Assets_Narrative_De
Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Intangible Assets [Abstract] | ' | ' |
Amortization expense | $99 | $227 |
Intangible_Assets_Useful_Life_
Intangible Assets (Useful Life Of Finite-lived Intangible Assets) (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Trademarks [Member] | Minimum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Estimated useful life of intangible assets | '1 year |
Trademarks [Member] | Maximum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Estimated useful life of intangible assets | '10 years |
Contracts Owned Equipment [Member] | Minimum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Estimated useful life of intangible assets | '5 years |
Contracts Owned Equipment [Member] | Maximum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Estimated useful life of intangible assets | '7 years |
Intangible_Assets_Intangible_A
Intangible Assets (Intangible Assets) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $5,314 | $5,315 |
Accumulated Amortization | -4,737 | -4,638 |
Net Carrying Amount | 577 | 677 |
Trademarks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 1,278 | 1,278 |
Accumulated Amortization | -995 | -962 |
Net Carrying Amount | 283 | 316 |
Contracts Owned Equipment [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 4,036 | 4,037 |
Accumulated Amortization | -3,742 | -3,676 |
Net Carrying Amount | $294 | $361 |
Debt_And_Capital_Lease_Obligat2
Debt And Capital Lease Obligations (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ' | ' |
Percentage of aggregate principal to prepay, minimum (in hundredths) | 10.00% | ' |
Revolving Credit Facility [Abstract] | ' | ' |
Number of business days short term borrowings payable, Maximum | '10 days | ' |
Term Loans [Abstract] | ' | ' |
Proceeds used to repay credit facility | $124,400,000 | ' |
Terms | 'The Base Rate is defined as the highest of (i) the federal funds rate plus 1/2 of 1.0%, (ii) the prime rate (as published in The Wall Street Journal), and (iii) the Eurodollar rate (for three-month loans) plus 1.0%. | ' |
Long term debt maturity [Abstract] | ' | ' |
Long-term debt | 1,086,432,000 | 1,058,628,000 |
Restricted cash | 8,998,000 | 9,253,000 |
Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maximum credit commitment | 760,000,000 | ' |
Maximum amount credit facility might be increased | 960,000,000 | ' |
Average Interest (in hundredths) | 1.90% | 1.90% |
Revolving Credit Facility [Abstract] | ' | ' |
Availability borrowing capacity | 488,400,000 | ' |
Revolving Credit Facility [Member] | CAI Rail Inc [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maximum credit commitment | 85,000,000 | ' |
Average Interest (in hundredths) | 2.40% | 2.40% |
Revolving Credit Facility [Abstract] | ' | ' |
Availability borrowing capacity | 28,000,000 | ' |
Term Loan [Member] | ' | ' |
Term Loans [Abstract] | ' | ' |
Amount outstanding under the facility | 117,500,000 | ' |
Term Loan [Member] | Development Bank of Japan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal amount of loan | 10,000,000 | ' |
Average Interest (in hundredths) | 2.30% | 2.30% |
Term Loans [Abstract] | ' | ' |
Term of loan | '5 years | ' |
Number of quarterly installments | 19 | ' |
Quarterly payments of principal | 200,000 | ' |
Debt instrument final payment | 6,200,000 | ' |
Amount outstanding under the facility | 35,100,000 | ' |
Term Loan [Member] | Consortium of Banks [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maximum credit commitment | 300,000,000 | ' |
Average Interest (in hundredths) | 2.50% | 2.50% |
Term Loans [Abstract] | ' | ' |
Quarterly payments of principal | 1,900,000 | ' |
Amount outstanding under the facility | 249,400,000 | ' |
Periodic payment of principal balance | 125,000,000 | ' |
Amortization term of facility | '6 years | ' |
Basis spread on variable rate (in hundredths) | 0.50% | ' |
Term Loan [Member] | Consortium of Banks, Note Dated April 11, 2012 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maximum credit commitment | 142,000,000 | ' |
Maximum amount credit facility might be increased | 200,000,000 | ' |
Average Interest (in hundredths) | 2.20% | 2.20% |
Term Loans [Abstract] | ' | ' |
Term of loan | '5 years | ' |
Amount outstanding under the facility | 126,800,000 | ' |
Periodic payments specified as percentage of drawn amount (in hundredths) | 1.75% | ' |
Term Loan [Member] | Eurodollar Rate [Member] | Consortium of Banks [Member] | ' | ' |
Term Loans [Abstract] | ' | ' |
Basis spread on variable rate (in hundredths) | 1.00% | ' |
Senior Secured Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Average Interest (in hundredths) | 4.90% | 4.90% |
Term Loans [Abstract] | ' | ' |
Amount outstanding under the facility | 90,600,000 | ' |
Long term debt maturity [Abstract] | ' | ' |
Long-term debt | 103,000,000 | ' |
Asset Backed Warehouse Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal amount of loan | 171,000,000 | ' |
Fixed rate, asset-backed notes | 3.47% | ' |
Term Loans [Abstract] | ' | ' |
Proceeds used for working capital purposes | 229,000,000 | ' |
Amount outstanding under the facility | 146,800,000 | ' |
Asset-backed Securities [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal amount of loan | 229,000,000 | ' |
Average Interest (in hundredths) | 3.40% | 3.40% |
Fixed rate, asset-backed notes | 3.35% | ' |
Term Loans [Abstract] | ' | ' |
Amount outstanding under the facility | 206,100,000 | ' |
Long term debt maturity [Abstract] | ' | ' |
Restricted cash | 9,000,000 | ' |
Collateralized Financing Obligation [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Average Interest (in hundredths) | 1.00% | 1.00% |
Long term debt maturity [Abstract] | ' | ' |
Long-term debt | 109,000,000 | ' |
Capital Lease Obligations [Abstract] | ' | ' |
Average fixed and floating interest rates | 1.00% | ' |
Maturity date range start | 1-Jun-15 | ' |
Maturity date range end | 1-Mar-17 | ' |
Swing Line Loans [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maximum credit commitment | 10,000,000 | ' |
Standby Letters of Credit [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Maximum credit commitment | 15,000,000 | ' |
Letter of Credit [Member] | ' | ' |
Revolving Credit Facility [Abstract] | ' | ' |
Letters of credit outstanding | 100,000 | ' |
Term Loan II [Member] | ' | ' |
Term Loans [Abstract] | ' | ' |
Debt instrument final payment | 21,500,000 | ' |
Term Loan II [Member] | Development Bank of Japan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal amount of loan | 30,000,000 | ' |
Term Loans [Abstract] | ' | ' |
Term of loan | '5 years | ' |
Number of quarterly installments | 19 | ' |
Quarterly payments of principal | 500,000 | ' |
Capital Lease Obligations [Member] | ' | ' |
Capital Lease Obligations [Abstract] | ' | ' |
Average fixed and floating interest rates | 2.30% | ' |
Maturity date range start | 1-Jun-14 | ' |
Maturity date range end | 1-Jun-19 | ' |
Estimated future principal and interest payments under capital lease obligations [Abstract] | ' | ' |
Capital lease obligation | $4,800,000 | ' |
Debt_And_Capital_Lease_Obligat3
Debt And Capital Lease Obligations (Details Of Debt) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Current Outstanding | $73,880 | $74,080 |
Long-term Outstanding | 1,086,432 | 1,058,628 |
Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Outstanding | 271,500 | 235,000 |
Average Interest (in hundredths) | 1.90% | 1.90% |
Agreement Terminates | 1-Mar-18 | ' |
Revolving Credit Facility [Member] | CAI Rail Inc [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Outstanding | 56,969 | 54,469 |
Average Interest (in hundredths) | 2.40% | 2.40% |
Agreement Terminates | 1-Jun-15 | ' |
Term Loan [Member] | Development Bank of Japan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Current Outstanding | 8,200 | 8,400 |
Long-term Outstanding | 26,850 | 27,300 |
Average Interest (in hundredths) | 2.30% | 2.30% |
Agreement Terminates | 1-Apr-18 | ' |
Term Loan [Member] | Consortium of Banks [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Current Outstanding | 7,500 | 7,500 |
Long-term Outstanding | 110,000 | 111,875 |
Average Interest (in hundredths) | 2.50% | 2.50% |
Agreement Terminates | 1-Dec-16 | ' |
Term Loan [Member] | Consortium of Banks, Note Dated April 11, 2012 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Current Outstanding | 9,940 | 9,940 |
Long-term Outstanding | 116,835 | 119,320 |
Average Interest (in hundredths) | 2.20% | 2.20% |
Agreement Terminates | 1-Apr-17 | ' |
Senior Secured Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Current Outstanding | 8,240 | 8,240 |
Long-term Outstanding | 82,400 | 86,520 |
Average Interest (in hundredths) | 4.90% | 4.90% |
Agreement Terminates | 1-Sep-22 | ' |
Asset-backed Securities [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Current Outstanding | 40,000 | 40,000 |
Long-term Outstanding | 312,875 | 322,875 |
Average Interest (in hundredths) | 3.40% | 3.40% |
Agreement Terminates | 1-Mar-28 | ' |
Collateralized Financing Obligation [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Outstanding | $109,003 | $101,269 |
Average Interest (in hundredths) | 1.00% | 1.00% |
Agreement Terminates | 1-Mar-17 | ' |
StockBased_Compensation_Plan_N
Stock-Based Compensation Plan (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Jan. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' |
Closing stock price (in dollars per share) | ' | $24.67 | ' | ' |
Directors [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period of stock options (in years) | ' | '1 year | ' | ' |
Restricted Stock Grant [Abstract] | ' | ' | ' | ' |
Vesting period of stock options (in years) | ' | '1 year | ' | ' |
Employees [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period of stock options (in years) | ' | '4 years | ' | ' |
Percentage of stock options vesting after one year (in hundredths) | ' | 25.00% | ' | ' |
Percentage of stock options vesting each month following first year (in hundredths) | ' | 2.08% | ' | ' |
Restricted Stock Grant [Abstract] | ' | ' | ' | ' |
Vesting period of stock options (in years) | ' | '4 years | ' | ' |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense recorded | ' | $0.40 | $0.30 | ' |
Remaining unamortized stock-based compensation cost | ' | 1.7 | ' | ' |
Stock-based compensation cost recognition period | ' | '2 years | ' | ' |
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' |
Aggregate intrinsic value of options exercised | ' | 0.1 | ' | ' |
Aggregate intrinsic value of options outstanding | ' | 12.6 | ' | ' |
Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vesting period of stock options (in years) | ' | ' | ' | '4 years |
Stock-based compensation expense recorded | ' | 0.1 | 0.1 | ' |
Remaining unamortized stock-based compensation cost | ' | 0.6 | ' | ' |
Stock-based compensation cost recognition period | ' | '3 years 2 months 12 days | ' | ' |
Restricted Stock Grant [Abstract] | ' | ' | ' | ' |
Restricted stock granted (in shares) | ' | 0 | ' | 28,150 |
Restricted common stock value | ' | ' | ' | $0.70 |
Vesting period of stock options (in years) | ' | ' | ' | '4 years |
Restricted shares, vested | 625 | ' | ' | ' |
Restricted shares, vested, value per share | $22.99 | ' | ' | ' |
Restricted shares, forfeited | 1,500 | ' | ' | ' |
Restricted shares, forfeited, value per share | $26.41 | ' | ' | ' |
Restricted shares, balance | ' | 26,025 | ' | ' |
StockBased_Compensation_Plan_S
Stock-Based Compensation Plan (Summary Of Stock Option Plan Activity) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Stock Options Activity [Roll Forward] | ' | ' |
Options outstanding at beginning of period (in shares) | 1,263,485 | 1,335,680 |
Options outstanding at end of period (in shares) | 1,256,485 | 1,246,185 |
Options exercisable at end of period (in shares) | 1,065,373 | 981,310 |
Weighted Average Exercise Price [Roll Forward] | ' | ' |
Outstanding at beginning of period (in dollars per share) | $14.84 | $13.41 |
Outstanding at end of period (in dollars per share) | $14.80 | $13.48 |
Exercisable at end of period (in dollars per share) | $13.23 | $11.99 |
Weighted Average Remaining Contractual Term [Abstract] | ' | ' |
Weighted average remaining term of the stock options exercisable (in years) | '5 years | '5 years 8 months 12 days |
Employees [Member] | ' | ' |
Stock Options Activity [Roll Forward] | ' | ' |
Options forfeited - employees (in shares) | -5,417 | -834 |
Options exercised - employees (in shares) | -1,583 | -88,661 |
Weighted Average Exercise Price [Roll Forward] | ' | ' |
Forfeited - employees (in dollars per share) | $22.55 | $5.60 |
Options exercised - employees (in dollars per share) | $17.77 | $12.50 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Taxes [Abstract] | ' | ' |
Effective tax rate (in hundredths) | 9.00% | 12.40% |
Unrecognized tax benefits | $0.20 | ' |
Accrued interest relating to unrecognized tax benefits, maximum | $0.10 | ' |
Fair_Value_Of_Financial_Instru1
Fair Value Of Financial Instruments (Details) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Asset backed warehouse facility | $352.90 |
Fair value of collateralized financing obligations | 109 |
Fair Value [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Asset backed warehouse facility | 349.3 |
Senior secured notes | 89.5 |
Fair value of collateralized financing obligations | 106.4 |
Fair Value [Member] | Fair Value, Inputs, Level 3 [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Senior secured notes | 90.6 |
Fair value of revolving credit facility | 328.5 |
Fair value of term loan | 279.3 |
Net investment in direct finance leases | 94.5 |
Net Investment in Capital Lease Obligations | $4.80 |
Commitments_And_Contingencies_
Commitments And Contingencies (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Commitments And Contingencies [Abstract] | ' |
Commitments to purchase container rental equipment | $61.80 |
Future minimum lease payments under operating lease agreements | $4 |
Related_Party_Transactions_Det
Related Party Transactions (Details) | Mar. 31, 2014 |
Related Party Transactions [Abstract] | ' |
Ownership percentage by parent in CAIJ (in hundredths) | 80.00% |
Ownership percentage by JIA in CAIJ (in hundredths) | 20.00% |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
ft | ||
segment | ||
Segment Reporting Information [Line Items] | ' | ' |
Number of operating industry segments | 1 | ' |
Number of reportable segments | 2 | ' |
Inter-segment revenues | $0 | ' |
Size of containers (in feet) | 20 | ' |
Net book value | 1,274,000 | 1,390,000 |
Railcar Equipment [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net book value | $76,900,000 | ' |
Segment_Information_Segment_Re
Segment Information (Segment Reporting Information By Container Leasing And Container Management Segments ) (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Total revenue | $54,264 | $50,959 | ' | ||
Total operating expenses | 29,835 | 23,111 | ' | ||
Operating income | 24,429 | 27,848 | ' | ||
Net interest expense | 8,791 | 9,509 | ' | ||
Net income before income taxes and non-controlling interest | 15,638 | 18,339 | ' | ||
Total assets | 1,692,077 | [1] | 1,535,680 | 1,675,589 | [1] |
Equipment Leasing [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Total revenue | 52,739 | 48,729 | ' | ||
Total operating expenses | 29,157 | 21,734 | ' | ||
Operating income | 23,582 | 26,995 | ' | ||
Net interest expense | 8,795 | 9,512 | ' | ||
Net income before income taxes and non-controlling interest | 14,787 | 17,483 | ' | ||
Total assets | 1,680,899 | 1,522,856 | ' | ||
Equipment Management [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Total revenue | 1,525 | 2,230 | ' | ||
Total operating expenses | 678 | 1,377 | ' | ||
Operating income | 847 | 853 | ' | ||
Net income before income taxes and non-controlling interest | 847 | 853 | ' | ||
Total assets | 11,178 | 12,824 | ' | ||
Unallocated [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Net interest expense | -4 | -3 | ' | ||
Net income before income taxes and non-controlling interest | $4 | $3 | ' | ||
[1] | Table of ContentsTotal assets at March 31, 2014 and December 31, 2013 include the following assets of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs: Cash, $19,984 and $14,600; Net investment in direct finance leases, $141 and $137; and Rental equipment net of accumulated depreciation, $88,045 and $84,107, respectively. |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (Stock Options [Member]) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Stock Options [Member] | ' | ' |
Dilutive Securities Included In Computation Of Earnings Per Share [Line Items] | ' | ' |
Securities having antidilutive effect (in shares) | 364,333 | 180,000 |
Earnings_Per_Share_Reconciliat
Earnings Per Share (Reconciliation Of Basic And Diluted Net Income Per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Numerator [Abstract] | ' | ' |
Net income attributable to CAI common stockholders used in the calculation of basic and diluted earnings per share | $14,271 | $16,067 |
Denominator [Abstract] | ' | ' |
Weighted average shares used in the calculation of basic earnings per share (in shares) | 22,213 | 22,085 |
Effect of dilutive securities (in shares) | 445 | 583 |
Weighted average shares used in the calculation of diluted earnings per share (in shares) | 22,658 | 22,668 |
Net income per share attributable to CAI common stockholders [Abstract] | ' | ' |
Basic (in dollars per share) | $0.64 | $0.73 |
Diluted (in dollars per share) | $0.63 | $0.71 |