Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-33388 | |
Entity Registrant Name | CAI International, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3109229 | |
Entity Address, Address Line One | Steuart Tower, 1 Market Plaza, Suite 2400 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 | |
City Area Code | 415 | |
Local Phone Number | 788-0100 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 17,506,453 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Amendment Flag | false | |
Entity Central Index Key | 0001388430 | |
Common Stock [Member] | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | CAI | |
Security Exchange Name | NYSE | |
Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 8.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock, par value $0.0001 per share | |
Trading Symbol | CAI-PA | |
Security Exchange Name | NYSE | |
Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 8.50% Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock, par value $0.0001 per share | |
Trading Symbol | CAI-PB | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Current assets | |||
Accounts receivable, net of allowance for doubtful accounts of $6,877 and $8,171 at March 31, 2020 and December 31, 2109, respectively | $ 86,177 | $ 88,452 | |
Current portion of net investment in finance leases | 75,730 | 71,274 | |
Prepaid expenses and other current assets | 9,638 | 10,228 | |
Total current assets | 280,288 | 216,418 | |
Restricted cash | 25,799 | 26,775 | |
Rental equipment, net of accumulated depreciation of $640,118 and $620,990 at March, 31, 2020 and December 31, 2019, respectively | 2,035,342 | 2,102,839 | |
Net investment in finance leases | 479,276 | 496,094 | |
Financing receivable | [1] | 29,739 | 30,693 |
Goodwill | 15,794 | 15,794 | |
Intangible assets, net of accumulated amortization of $5,624 and $5,221 at March 31, 2020 and December 31, 2019, respectively | 3,720 | 4,123 | |
Other non-current assets | 8,520 | 9,029 | |
Total assets | [2] | 2,878,478 | 2,901,765 |
Current liabilities | |||
Accounts payable | 8,928 | 7,291 | |
Accrued expenses and other current liabilities | 26,180 | 30,479 | |
Unearned revenue | 6,478 | 6,405 | |
Current portion of debt | 216,519 | 218,094 | |
Rental equipment payable | 4,596 | 25,137 | |
Total current liabilities | 262,701 | 287,406 | |
Debt | 1,888,634 | 1,880,122 | |
Deferred income tax liability | 31,872 | 35,376 | |
Other non-current liabilities | 5,124 | 5,621 | |
Total liabilities | [3] | 2,188,331 | 2,208,525 |
Stockholders' equity | |||
Common stock, par value $0.0001 per share; authorized 84,000,000 shares; issued and outstanding 17,506,453 and 17,479,127 shares at March 31, 2020 and December 31, 2019, respectively | 2 | 2 | |
Additional paid-in capital | 103,290 | 102,709 | |
Accumulated other comprehensive loss | (6,767) | (6,630) | |
Retained earnings | 489,757 | 493,294 | |
Total stockholders' equity | 690,147 | 693,240 | |
Total liabilities and stockholders' equity | 2,878,478 | 2,901,765 | |
Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock [Member] | |||
Stockholders' equity | |||
Preferred stock, par value $0.0001 per share; authorized 10,000,000 | 54,990 | 54,990 | |
Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock [Member] | |||
Stockholders' equity | |||
Preferred stock, par value $0.0001 per share; authorized 10,000,000 | 48,875 | 48,875 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | |||
Current assets | |||
Cash | 87,727 | 19,870 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Current assets | |||
Cash | 21,016 | 26,594 | |
Rental equipment, net of accumulated depreciation of $640,118 and $620,990 at March, 31, 2020 and December 31, 2019, respectively | 98,758 | 101,907 | |
Net investment in finance leases | 4,614 | 4,790 | |
Current liabilities | |||
Current portion of debt | 25,906 | 26,931 | |
Debt | $ 91,501 | $ 100,849 | |
[1] | Included in financing receivable in the consolidated balance sheets. | ||
[2] | Total assets at March 31, 2020 and December 31, 2019 include the following assets of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs: Cash, $21,016 and $26,594; Net investment in direct finance leases, $4,614 and $4,790; and Rental equipment, net of accumulated depreciation, $98,758, and $101,907, respectively. | ||
[3] | Total liabilities at March 31, 2020 and December 31, 2019 include the following VIE liabilities for which the VIE creditors do not have recourse to CAI International, Inc.: Current portion of debt, $25,906 and $26,931; Debt, $91,501 and $100,849, respectively. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Current assets | ||
Accounts receivable, allowance for doubtful accounts | $ 6,877 | $ 8,171 |
Rental equipment net of accumulated depreciation | 2,035,342 | 2,102,839 |
Rental equipment, accumulated depreciation | 640,118 | 620,990 |
Net investment in direct finance leases | 479,276 | 496,094 |
Intangible assets, accumulated amortization | 5,624 | 5,221 |
Current liabilities | ||
Current portion of debt | 216,519 | 218,094 |
Debt | $ 1,888,634 | $ 1,880,122 |
Stockholders' equity | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 84,000,000 | 84,000,000 |
Common stock, shares issued | 17,506,453 | 17,479,127 |
Common stock, shares outstanding | 17,506,453 | 17,479,127 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Current assets | ||
Cash | $ 21,016 | $ 26,594 |
Rental equipment net of accumulated depreciation | 98,758 | 101,907 |
Net investment in direct finance leases | 4,614 | 4,790 |
Current liabilities | ||
Current portion of debt | 25,906 | 26,931 |
Debt | $ 91,501 | $ 100,849 |
Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred stock, dividend rate | 8.50% | 8.50% |
Preferred stock, shares issued | 2,199,610 | 2,199,610 |
Preferred stock, shares outstanding | 2,199,610 | 2,199,610 |
Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred stock, dividend rate | 8.50% | 8.50% |
Preferred stock, shares issued | 1,955,000 | 1,955,000 |
Preferred stock, shares outstanding | 1,955,000 | 1,955,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue | ||
Total revenue | $ 105,022 | $ 111,108 |
Operating expenses | ||
Depreciation of rental equipment | 27,048 | 31,784 |
Impairment of rental equipment | 19,167 | |
Storage, handling and other expenses | 5,748 | 5,120 |
Logistics transportation costs | 26,815 | 24,519 |
Gain on sale of rental equipment | (1,614) | (8,832) |
Administrative expenses | 11,826 | 14,396 |
Total operating expenses | 88,990 | 66,987 |
Operating income | 16,032 | 44,121 |
Other expenses | ||
Net interest expense | 20,376 | 23,850 |
Other expense | 246 | 38 |
Total other expenses | 20,622 | 23,888 |
(Loss) income before income taxes | (4,590) | 20,233 |
Income tax (benefit) expense | (3,260) | 1,659 |
Net (loss) income | (1,330) | 18,574 |
Preferred stock dividends | 2,207 | 2,207 |
Net (loss) income attributable to CAI common stockholders | $ (3,537) | $ 16,367 |
Net (loss) income per share attributable to CAI common stockholders | ||
Basic | $ (0.20) | $ 0.88 |
Diluted | $ (0.20) | $ 0.87 |
Weighted average shares outstanding | ||
Basic | 17,433,000 | 18,555,000 |
Diluted | 17,433,000 | 18,870,000 |
Container Lease Revenue [Member] | ||
Revenue | ||
Total revenue | $ 69,113 | $ 75,511 |
Rail Lease Revenue [Member] | ||
Revenue | ||
Total revenue | 5,803 | 7,881 |
Logistics Revenue [Member] | ||
Revenue | ||
Total revenue | $ 30,106 | $ 27,716 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net (loss) income | $ (1,330) | $ 18,574 |
Other comprehensive loss, net of tax: | ||
Foreign currency translation adjustments | (137) | (81) |
Comprehensive (loss) income before preferred stock dividends | (1,467) | 18,493 |
Dividends on preferred stock | (2,207) | (2,207) |
Comprehensive (loss) income available to CAI common stockholders | $ (3,674) | $ 16,286 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Total |
Balances at Dec. 31, 2018 | $ 103,865 | $ 2 | $ 132,666 | $ (6,513) | $ 471,112 | $ 701,132 |
Balances, Shares at Dec. 31, 2018 | 4,155,000 | 18,764,000 | ||||
Net (loss) income | 18,574 | 18,574 | ||||
Preferred stock dividends, $0.53125/share | (2,207) | (2,207) | ||||
Foreign currency translation adjustment | (81) | (81) | ||||
Repurchase of common stock | (13,946) | (13,946) | ||||
Repurchase of common stock, Shares | (595,000) | |||||
Exercise of stock options | 107 | 107 | ||||
Exercise of stock options, Shares | 27,000 | |||||
Stock-based compensation, net of taxes | 730 | 730 | ||||
Stock-based compensation, net of taxes, Shares | 12,000 | |||||
Balances at Mar. 31, 2019 | $ 103,865 | $ 2 | 119,557 | (6,594) | 487,479 | 704,309 |
Balances, Shares at Mar. 31, 2019 | 4,155,000 | 18,208,000 | ||||
Balances at Dec. 31, 2019 | $ 103,865 | $ 2 | 102,709 | (6,630) | 493,294 | 693,240 |
Balances, Shares at Dec. 31, 2019 | 4,155,000 | 17,479,000 | ||||
Net (loss) income | (1,330) | (1,330) | ||||
Preferred stock dividends, $0.53125/share | (2,207) | (2,207) | ||||
Foreign currency translation adjustment | (137) | $ (137) | ||||
Repurchase of common stock, Shares | 0 | |||||
Exercise of stock options | 113 | $ 113 | ||||
Exercise of stock options, Shares | 8,000 | |||||
Stock-based compensation, net of taxes | 468 | 468 | ||||
Stock-based compensation, net of taxes, Shares | 19,000 | |||||
Balances at Mar. 31, 2020 | $ 103,865 | $ 2 | $ 103,290 | $ (6,767) | $ 489,757 | $ 690,147 |
Balances, Shares at Mar. 31, 2020 | 4,155,000 | 17,506,000 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY [Abstract] | ||
Preferred Stock, Dividends Per Share | $ 0.53125 | $ 0.53125 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Cash flows from operating activities | |||
Net (loss) income | $ (1,330) | $ 18,574 | |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation | 27,314 | 31,839 | |
Impairment of rental equipment | 19,167 | ||
Amortization of debt issuance costs | 988 | 1,202 | |
Amortization of intangible assets | 403 | 403 | |
Stock-based compensation expense | 874 | 839 | |
Unrealized loss on foreign exchange | 220 | 26 | |
Gain on sale of rental equipment | (1,614) | (8,832) | |
Deferred income taxes | (3,504) | 630 | |
Bad debt (recovery) expense | (1,076) | 738 | |
Changes in other operating assets and liabilities: | |||
Accounts receivable | 4,409 | 1,158 | |
Prepaid expenses and other assets | 830 | (1,132) | |
Net investment in finance leases | 17,113 | 16,442 | |
Accounts payable, accrued expenses and other liabilities | (3,231) | (5,520) | |
Unearned revenue | (438) | (2,038) | |
Net cash provided by operating activities | 60,125 | 54,329 | |
Cash flows from investing activities | |||
Purchase of rental equipment | [1] | (27,500) | (141,212) |
Proceeds from sale of rental equipment | 24,576 | 180,331 | |
Receipt of principal payments from financing receivable | 325 | ||
Purchase of furniture, fixtures and equipment | (310) | (50) | |
Net cash (used in) provided by investing activities | (2,909) | 39,069 | |
Cash flows from financing activities | |||
Proceeds from debt | 110,000 | 306,582 | |
Principal payments on debt | (103,742) | (382,847) | |
Debt issuance costs | (419) | ||
Repurchase of common stock | (13,946) | ||
Dividends paid to preferred stockholders | (2,207) | (2,207) | |
Exercise of stock options | 113 | 107 | |
Net cash provided by (used in) financing activities | 4,164 | (92,730) | |
Effect on cash of foreign currency translation | (77) | 238 | |
Net increase in cash and restricted cash | 61,303 | 906 | |
Cash and restricted cash at beginning of the period | [2] | 73,239 | 75,983 |
Cash and restricted cash at end of the period | [3] | 134,542 | 76,889 |
Cash paid during the period for: | |||
Income taxes | 111 | 91 | |
Interest | 19,736 | 22,544 | |
Supplemental disclosure of non-cash investing and financing activity | |||
Transfer of rental equipment to finance lease | 5,760 | 8,349 | |
Rental equipment payable | $ 4,596 | $ 56,221 | |
[1] | Represents cash disbursements for purchasing of rental equipment as reflected in the consolidated statements of cash flows for the periods indicated. | ||
[2] | Includes cash of $19,870 and $20,104, cash held by variable interest entities of $26,594 and $25,211, and restricted cash of $26,775 and $30,668 at December 31, 2019 and 2018, respectively. | ||
[3] | Includes cash of $87,727 and $20,128, cash held by variable interest entities of $21,016 and $27,058, and restricted cash of $25,799 and $29,703 at March 31, 2020 and 2019, respectively. |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Restricted cash | $ 25,799 | $ 26,775 | $ 29,703 | $ 30,668 |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | ||||
Cash | 87,727 | 19,870 | 20,128 | 20,104 |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Cash | $ 21,016 | $ 26,594 | $ 27,058 | $ 25,211 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Description of Business and Significant Accounting Policies [Abstract] | |
Description of Business and Significant Accounting Policies | (1) Description of Business and Significant Accounting Policies Organization CAI International, Inc., together with its subsidiaries (collectively, CAI or the Company), is a transportation finance and logistics company. The Company purchases equipment, primarily intermodal shipping containers and railcars, which it leases to its customers. The Company also manages equipment for third-party investors. In operating its fleet, the Company leases, re-leases and disposes of equipment and contracts for the repair, repositioning and storage of equipment. The Company also provides domestic and international logistics services. The Company’s common stock, 8.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Stock and 8.50% Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Stock are traded on the New York Stock Exchange under the symbols “CAI,” “CAI-PA” and “CAI-PB,” respectively. 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 CAI International, Inc. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements contain all normal, recurring adjustments necessary to present fairly the Company’s financial position as of March 31, 2020 and December 31, 2019, the Company’s results of operations for the three months ended March 31, 2020 and 2019, and the Company’s cash flows for the three months ended March 31, 2020 and 2019. Certain reclassifications have been made to prior year financial statements to conform to the current presentation. 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 2020 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 (U.S. GAAP) 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, 2019, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 5, 2020. Due to market conditions, the Company decided during the three months ended March 31, 2020 to terminate the sale process for its rail business. As a result, the railcar assets have been reclassified as held for use as of March 31, 2020 and the rail business reclassified as a continuing operation. All prior periods presented in the unaudited consolidated financial statements have been restated to reflect the reclassification. See Note 3 – Rental Equipment for further information over the reclassification of the railcar assets as held for use. Concentration of Credit Risk The Company’s equipment leases and trade receivables subject it to potential credit risk. The Company extends credit to its customers based upon an evaluation of each customer’s financial condition and credit history. Evaluations of the financial condition and associated credit risk of customers are performed an on ongoing basis. The Company’s largest customer accounted for 13% of the Company’s total billings during the three months ended March 31, 2020. Accounting Policy Updates Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326) (ASU 2016-13) and subsequently issued amendments. The guidance affects the Company’s net investment in finance leases, financing receivable and accounts receivable for sales of rental equipment and logistics operations. Topic 326 requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectability. The Company adopted ASU 2016-13 effective January 1, 2020, using the modified retrospective method, which did not have a significant impact on the consolidated financial statements as credit losses are not expected to be significant based on historical loss trends, the financial condition of customers, and external market factors. Allowance for credit losses – Net investment in finance leases and financing receivable The allowance for credit losses on net investment in finance leases and financing receivable is estimated on a collective basis by internal customer rating (see Note 4 – Net investment in finance leases for descriptions of ratings). Expected credit losses for these financial assets are estimated using a loss-rate methodology which considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Except as described above, there were no changes to the Company’s accounting policies during the three months ended March 31, 2020. See Note 2 to the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 5, 2020, for a description of the Company’s significant accounting policies. |
Consolidation of Variable Inter
Consolidation of Variable Interest Entities | 3 Months Ended |
Mar. 31, 2020 | |
Consolidation of Variable Interest Entities [Abstract] | |
Consolidation of Variable Interest Entities | (2) Consolidation of Variable Interest Entities The Company regularly performs a review of its container fund arrangements with investors to determine whether or not it has a variable interest in the fund and if the fund is a variable interest entity (VIE). If it is determined that the Company does not have a variable interest in the fund, further analysis is not required and the Company does not consolidate the fund. If it is determined that the Company does have a variable interest in the fund and the fund is 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 FASB ASC Topic 810, Consolidation : · it has power to direct the activities of a VIE that most significantly impact the VIE’s economic performance; and · it has the obligation to absorb losses of the VIE that could be potentially significant to the VIE or the right to receive benefits from the VIE 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 FASB ASC Topic 810, Consolidation . The Company currently enters into two types of container fund arrangements with investors which are reviewed under FASB ASC Topic 810, Consolidation . These arrangements include container funds that the Company manages for investors and container funds that have entered into financing arrangements with investors. All of the funds under financing arrangements are Japanese container funds that were established under separate investment agreements allowed under Japanese commercial laws. Each of the funds is financed by unrelated Japanese third-party investors. Managed Container Funds The fees earned by the Company for arranging, managing and establishing container funds are commensurate with the level of effort required to provide those services, and the arrangements include only terms and conditions that are customarily present in arrangements for similar services. As such, the Company does not have a variable interest in the managed containers funds, and does not consolidate those funds. No container portfolios were sold to the funds during the three months ended March 31, 2020 and 2019. Collateralized Financing Obligations The Company has transferred containers 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. The Company concluded these were financing transactions under which sale-leaseback accounting was not applicable. The terms of the transactions with container funds under financing arrangements 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. The funds are considered VIEs under FASB ASC Topic 810, Consolidation , 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. 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, 2020 and December 31, 2019, and the results of the VIEs’ operations and cash flows for the three months ended March 31, 2020 and 2019, in the Company’s consolidated financial statements. The containers that were transferred to the Japanese investor funds had a net book value of $103.4 million as of March 31, 2020. The container equipment, together with $21.0 million of cash held by the investor funds that can only be used to settle the liabilities of the VIEs, has been included on the Company’s consolidated balance sheets with the related liability presented in the debt section of the Company’s consolidated balance sheets as collateralized financing obligations of $82.2 million and term loans held by VIE of $35.2 million . No gain or loss was recognized by the Company on the initial consolidation of the VIEs. No containers were sold to the Japanese investor during the three months ended March 31, 2020. Containers sold to the Japanese investor funds during the three months ended March 31, 2019 had a net book value of $65.0 million. |
Rental Equipment
Rental Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Rental Equipment [Abstract] | |
Rental Equipment | (3) Rental Equipment The following table provides a summary of the Company’s rental equipment (in thousands): March 31, December 31, 2020 2019 Dry containers $ 1,881,637 $ 1,902,471 Refrigerated containers 277,013 282,155 Other specialized equipment 221,935 224,924 Railcars 294,875 314,279 2,675,460 2,723,829 Accumulated depreciation (640,118) (620,990) Rental equipment, net of accumulated depreciation $ 2,035,342 $ 2,102,839 Impairment of railcar assets During the three months ended March 31, 2020, an impairment charge of $19.2 million was recognized to reduce the book value of the railcar portfolio, on an individual basis, to the lower of its net book value had the assets not been classified as held for sale, or its estimated fair value at the date when the decision was made not to sell the assets of the railcar business. To assist in the Company’s assessment of fair value, a third-party appraisal was carried out on the railcar fleet using a combination of cost and market approaches. The cost approach utilizes the current replacement cost for a particular car type and calculates an estimated depreciation based on a railcar having a 40 -year life and residual value being 10% of the estimated purchase price. The market approach estimates value based on recent market transactions involving similar railcars. The railcars were classified within Level 3 of the fair value hierarchy. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | (4) Leases The Company leases its rental equipment on either short-term operating leases through master lease agreements, long-term non-cancelable operating leases, or finance leases. The following table summarizes the components of lease revenue (in thousands): Three Months Ended March 31, 2020 2019 Lease revenue - operating leases $ 60,399 $ 69,197 Interest income on finance leases 11,623 11,390 Other revenue 2,217 2,805 Interest income on financing receivable 677 - Total lease revenue $ 74,916 $ 83,392 Net investment in finance leases The following table represents the components of the Company’s net investment in finance leases (in thousands): March 31, December 31, 2020 2019 Gross finance lease receivables (1) $ 783,471 $ 806,019 Unearned income (2) (228,420) (238,651) Net investment in finance leases 555,051 567,368 Allowance for credit losses (45) - Net investment in finance leases, net of allowance for credit losses $ 555,006 $ 567,368 (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 $74.3 million of unguaranteed residual value at March 31, 2020 and December 31, 2019, respectively, included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of March 31, 2020 and December 31, 2019. (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, 2020 and December 31, 2019. (3) One major customer represented 65% of the Company’s finance lease portfolio as of March 31, 2020 and December 31, 2019. No other customer represented more than 10% of the Company’s finance lease portfolio in each of those periods. Contractual maturities of the Company's gross finance lease receivables subsequent to March 31, 2020 for the years ending March 31 are as follows (in thousands): 2021 $ 116,727 2022 109,491 2023 105,485 2024 85,857 2025 60,034 2026 and thereafter 305,877 $ 783,471 Financing receivable During 2019, the Company purchased containers and lease d back the containers to the seller-lessees through finance leaseback arrangements. As control of the equipment was retained by the customers, the Company concluded that sale-leaseback accounting was not applicable and treated the arrangements as financing transactions. The Company recorded a financing receivable in the amount paid for the containers. Payments made by the seller-lessee are recorded as a reduction to the financing receivable and as interest income, calculated using the effective interest method. The following table summarizes the components of the Company’s financing receivable (in thousands): March 31, December 31, 2020 2019 Gross financing receivable $ 43,957 $ 45,530 Unearned income (10,434) (11,111) 33,523 34,419 Allowance for credit losses (1) - Total financing receivable $ 33,522 $ 34,419 Amounts due within one year (1) 3,783 3,726 Amounts due beyond one year (2) 29,739 30,693 Total financing receivable $ 33,522 $ 34,419 (1) Included in prepaid expenses and other current assets in the consolidated balance sheets. (2) Included in financing receivable in the consolidated balance sheets. Credit quality information In order to estimate the allowance for losses contained in net investment in finance leases and financing receivable, the Company reviews the credit worthiness of its customers on an ongoing basis. The review includes monitoring credit quality indicators, historical credit loss activity, current market and economic conditions, and reasonable and supportable forecasts. The Company uses the following definitions for risk ratings: 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 moderate. 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. As of March 31, 2020 and December 31, 2019, based on the most recent analysis performed, the risk category of the Company’s net investment in finance leases and financing receivable, based on year of origination is as follows (in thousands): March 31, 2020 2020 2019 2018 2017 2016 Prior Total Net investment in finance leases Tier 1 $ 2,880 $ 59,580 $ 248,821 $ 171,092 $ 7,200 $ 1,654 $ 491,227 Tier 2 2,012 31,521 14,473 7,092 2,320 6,406 63,824 Tier 3 - - - - - - - Total net investment in finance leases $ 4,892 $ 91,101 $ 263,294 $ 178,184 $ 9,520 $ 8,060 $ 555,051 Financing receivable Tier 1 $ - $ 32,830 $ - $ - $ - $ - $ 32,830 Tier 2 - 693 - - - - 693 Tier 3 - - - - - - - Total financing receivable $ - $ 33,523 $ - $ - $ - $ - $ 33,523 Net investment in Financing December 31, 2019 finance leases receivable Tier 1 $ 502,265 $ 33,694 Tier 2 65,103 725 Tier 3 - - $ 567,368 $ 34,419 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Intangible Assets [Abstract] | |
Intangible Assets | (5) Intangible Assets The Company’s intangible assets as of March 31, 2020 and December 31, 2019 consist of customer relationships. The following table summarizes the estimated future amortization expense as of March 31, 2020 (in thousands): 2021 $ 1,609 2022 1,231 2023 474 2024 406 Total intangible assets $ 3,720 Amortization expense related to intangible assets was $ 0.4 million for both the three months ended March 31, 2020 and 2019 and was included in administrative expenses in the consolidated statements of operations. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt [Abstract] | |
Debt | (6) Debt Details of the Company’s debt as of March 31, 2020 and December 31, 2019 were as follows (dollars in thousands): March 31, 2020 December 31, 2019 Outstanding Average Outstanding Average Current Long-term Interest Current Long-term Interest Maturity Revolving credit $ - $ 682,000 2.4% $ - $ 624,000 3.3% June 2023 Revolving credit facility - Rail - 137,500 2.4% - 137,500 3.3% October 2023 Revolving credit facility - Euro 21,122 - 2.0% 21,537 - 2.0% September 2020 Term loan 1,800 25,050 3.9% 1,800 25,500 3.9% April 2023 Term loan 7,000 66,750 2.7% 7,000 68,500 3.5% June 2021 Term loan 14,967 - 3.4% 15,284 - 3.4% December 2020 Term loan 3,043 36,864 3.6% 3,016 37,635 3.6% August 2021 Term loan 6,000 85,000 4.6% 6,000 86,500 4.6% October 2023 Senior secured notes 6,110 43,610 4.9% 6,110 46,665 4.9% September 2022 Asset-backed notes 2012-1 17,100 27,075 3.5% 17,100 31,350 3.5% October 2027 Asset-backed notes 2013-1 22,900 45,800 3.4% 22,900 51,525 3.4% March 2028 Asset-backed notes 2017-1 25,307 158,169 3.7% 25,307 164,496 3.7% June 2042 Asset-backed notes 2018-1 34,890 241,323 4.0% 34,890 250,045 4.0% February 2043 Asset-backed notes 2018-2 34,350 257,625 4.4% 34,350 266,213 4.4% September 2043 Collateralized financing obligations 20,595 61,617 1.6% 21,681 69,615 1.5% February 2026 Term loans held by VIE 5,311 29,884 4.2% 5,250 31,234 4.2% February 2026 220,495 1,898,267 222,225 1,890,778 Debt issuance costs (3,976) (9,633) (4,131) (10,656) Total Debt $ 216,519 $ 1,888,634 $ 218,094 $ 1,880,122 The Company maintains its revolving credit facilities to finance the acquisition of rental equipment and for general working capital purposes. As of March 31, 2020 , the Company had $536.8 million in total availability under its revolving credit facilities (net of $0.1 million in letters of credit), subject to the Company’s ability to meet the collateral requirements under the agreements governing the facilities. Based on the borrowing base and collateral requirements at March 31, 2020 , the borrowing availability under the Company’s revolving credit facilities was $41.0 million, assuming no additional contributions of assets. The agreements relating to all of the Company’s debt contain various financial and other covenants. As of March 31, 2020 , the Company was in compliance with all of its financial and other covenants. For further information on the Company’s debt instruments, see Note 10 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 5, 2020. To provide additional liquidity and enhance its financial flexibility in response to recent global economic uncertainty and financial market volatility caused by the COVID-19 pandemic, the Company drew down $70 million from its revolving credit facility as a precautionary measure in March 2020. On April 27, 2020, the Company repaid in full the outstanding debt associated with the asset-backed notes 2012-1 and 2013-1. |
Stock-Based Compensation Plan
Stock-Based Compensation Plan | 3 Months Ended |
Mar. 31, 2020 | |
Stock-Based Compensation Plan [Abstract] | |
Stock-Based Compensation Plan | (7) Stock–Based Compensation Plan 2019 Incentive Plan In June 2019, the Company’s stockholders approved the CAI International, Inc. 2019 Incentive Plan (2019 Plan), which replace d the CAI International, Inc. Amended and Restated 2007 Equity Incentive Plan (2007 Plan) . No further awards will be made under the 2007 Plan. Under the 2019 Plan, a maximum of 2,577,075 share awards may be granted. Under the 2019 Plan, the Company may grant incentive and nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance awards and other stock or cash-based awards. Stock Options Stock options granted to employees have a vesting period of four years from the 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. All of the stock options have a contractual term of ten years. The following table summarizes the Company’s stock option activities for the three months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 Weighted Weighted Average Average Number of Exercise Number of Exercise Shares Price Shares Price Options outstanding at January 1 646,946 $ 16.96 850,167 $ 16.46 Options exercised (7,750) $ 14.54 (46,917) $ 14.04 Options outstanding at March 31 639,196 $ 16.98 803,250 $ 16.60 Options exercisable 584,652 $ 17.25 642,762 $ 17.47 Weighted average remaining term 5.2 years 5.5 years The aggregate intrinsic value of stock options exercised during the three months ended March 31, 2020 and 2019 was $0.1 million and $0.5 million, respectively. The aggregate intrinsic value of all options outstanding as of March 31, 2020 was $1.0 million based on the closing price of the Company’s common stock of $14.14 per share on March 31, 2020 , the last trading day of the quarter. The Company recognized stock-based compensation expense relating to stock options of $0.2 million for both the three months ended March 31, 2020 and 2019 . As of March 31, 2020 , the remaining unamortized stock-based compensation cost relating to stock options granted to the Company’s employees and independent directors was approximately $0.4 million, which is to be recognized over the remaining weighted average vesting period of approximately 0.7 years. The Company did not grant any stock options during the three months ended March 31, 2020 and 2019 . Restricted Stock and Performance Stock The Company grants restricted stock units to certain employees and restricted stock awards to independent directors from time to time pursuant to the 2019 Plan. Restricted stock granted to employees has a vesting period of four years; 25% vesting on each anniversary of the grant date. Restricted stock granted to independent directors vests in one year. The Company recognizes the compensation cost associated with restricted stock over the vesting period based on the closing price of the Company’s common stock on the date of grant. The Company grants performance stock units to certain executives and other key employees. The performance stock vests at the end of a 3 -year performance cycle if certain financial performance targets are met. The Company recognizes compensation cost associated with the performance stock ratably over the 3 -year term when it is considered probable that performance targets will be met. Compensation cost is based on the closing price of the Company’s common stock on the date of grant. The following table summarizes the activity of restricted stock and performance stock under the 2019 Plan: Weighted Average Number of Grant Date Shares Fair Value Outstanding at December 31, 2019 281,736 $ 23.18 Granted 94,497 $ 28.63 Vested (44,046) $ 22.59 Outstanding at March 31, 2020 332,187 $ 24.81 The Company recognized stock-based compensation expense relating to restricted stock and performance stock of $0.7 million and $0.6 million for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020 , unamortized stock-based compensation expense relating to restricted stock and performance stock was $5.8 million , which will be recognized over the remaining average vesting period of 2.1 y ears. Stock-based compensation expense is recorded as a component of administrative expenses in the Company’s consolidated statements of operations with a corresponding credit to additional paid-in capital in the Company’s consolidated balance sheets. Employee Stock Purchase Plan In June 2019, the Company’s stockholders approved the CAI International, Inc. 2019 Employee Stock Purchase Plan (ESPP). The ESPP provides a means by which eligible employees may be given an opportunity to purchase shares of the Company’s common stock at a discount using payroll deductions. The ESPP authorizes the issuance of up to 250,000 shares of the Company’s common stock. The first offering period under the ESPP commenced in December 2019. No shares were issued under the ESPP during the three months ended March 31, 2020. The Company recognized stock-based compensation expense relating to the ESPP of less than $0.1 million for the three months ended March 31, 2020 . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | (8) Income Taxes The consolidated income tax expense for the three months ended March 31, 2020 and 2019 , was determined based upon estimates of the Company’s consolidated annual effective income tax rate for the years ending December 31, 2020 and 2019, respectively. The difference between the consolidated annual effective income tax rate and the U.S. federal statutory rate is primarily attributable to foreign income taxes, state income taxes and the effect of certain permanent differences. The Company’s estimated effective tax rate before discrete items was 9.1% at March 31, 2020 , compared to an effective tax rate of 8.2% at March 31, 2019 . Discrete items during the three months ended March 31, 2020 primarily related to the impairment of railcar assets (Note 3) charge of $19.2 million, which resulted in a tax benefit of $4.5 million. The Company accounts for uncertain tax positions based on an evaluation as to whether it is more likely than not that a position will be sustained on audit, including resolution of any related appeals or litigation processes. This evaluation is based on all available evidence and assumes that the appropriate tax authorities have full knowledge of all relevant information concerning the tax position. Once it has been determined that a tax position is more likely than not to be sustained on its technical merits, the tax benefit recognized is based on the largest amount that is greater than 50% likely of being realized upon ultimate settlement. As of March 31, 2020 , the Company had unrecognized tax benefits of $0.3 million, which if recognized, would reduce the Company’s effective tax rate. Total accrued interest relating to unrecognized tax benefits was $0.1 million as of March 31, 2020 . The Company does not believe the total amount of unrecognized tax benefits as of March 31, 2020 will change for the remainder of 2020. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | (9) Fair Value of Financial Instruments Fair value represents the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses the following fair value hierarchy when selecting inputs for its valuation techniques, with highest priority given to Level 1: · Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities; · Level 2 – inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and · Level 3 – unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. The carrying amounts of cash, restricted cash, accounts receivable and accounts payable reflected in the balance sheets as of March 31, 2020 and December 31, 2019, approximate their fair value due to the short-term nature of these financial assets and liabilities. The carrying value of variable-rate debt in the balance sheets as of March 31, 2020 and December 31, 2019 approximates fair value as the changes in their associated interest rates reflect the current market and credit risk is similar to when the loans were originally obtained. The principal balance of the Company’s asset-backed notes and collateralized financing obligations was $864.5 million and $82.2 million as of March 31, 2020 , with a fair value of approximately $836.8 million and $83.3 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 2 in the fair value hierarchy. The principal balance of the Company’s fixed-rate term loans, asset-backed notes and collateralized financing obligations was $148.4 million, $898.2 million and $91.3 million as of December 31, 2019, with a fair value of approximately $151.0 million, $911.0 million and $93.0 million, respectively. Management believes that the balances of the Company’s senior secured notes of $49.7 million and $52.8 million, term loans held by VIE of $35.2 million and $36.5 million, and financing receivable of $33.5 million and $34.4 million as of March 31, 2020 and December 31, 2019, respectively, and the fixed-rate term loans of $145.9 million as of March 31, 2020, approximate their fair values. The fair value of these financial instruments would be categorized as Level 2 in the fair value hierarchy. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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 $3.8 million of containers as of March 31, 2020, all in the twelve months ending March 31, 2021 . |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders’ Equity [Abstract] | |
Stockholders’ Equity | (11) Stockholders’ Equity Stock Repurchase Plan In October 2018, the Company announced that the Board of Directors approved the repurchase of up to three million shares of its outstanding common stock. The number, price, structure and timing of the repurchases, if any, will be at the Company’s sole discretion and will be evaluated by the Company depending on prevailing market conditions, corporate needs, and other factors. The stock repurchases may be made in the open market, block trades or privately negotiated transactions. This stock repurchase program replaces any available prior share repurchase authorization and may be discontinued at any time. The Company did not repurchase any shares under this repurchase plan during the three months ended March 31, 2020. As of March 31, 2020 , approximately 1.0 million shares remained available for repurchase under this share repurchase program. For further information on the Company’s shareholders’ equity, see Note 16 to the consolidated financial statements in the Company’ Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 5, 2020. |
Related Parties Transactions
Related Parties Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Parties Transactions [Abstract] | |
Related Parties Transactions | (12) Related Parties The Company is responsible for settling income tax liabilities of certain employees related to stock-based compensation. The Company is then reimbursed for those amounts by the employees. At March 31, 2020 and December 31, 2019, the Company had a liability of $1.2 million representing tax due to the UK tax authorities in respect of an officer of the Company. The Company also included in its balance sheets at March 31, 2020 and December 31, 2019 a current asset of $1.2 million, representing the amount that will be reimbursed to the Company by that officer. |
Segment And Geographic Informat
Segment And Geographic Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment And Geographic Information [Abstract] | |
Segment And Geographic Information | (13) Segment and Geographic Information The Company organizes itself by the nature of the services it provides which includes equipment leasing (consisting of container leasing and rail leasing) and logistics. The container leasing segment is aggregated with equipment management and derives its revenue from the ownership and leasing of containers and fees earned for managing container portfolios on behalf of third-party investors. The rail leasing segment derives its revenue from the ownership and leasing of railcars. The logistics segment derives its revenue from the provision of logistics services. There are no material inter-segment revenues. With the exception of administrative expenses, operating expenses are directly attributable to each segment. Administrative expenses that are not directly attributable to a segment are allocated to the segments based upon relative asset values or revenue. The following tables show condensed segment information for the three months ended March 31, 2020 and 2019 , reconciled to the Company’s income before income taxes as shown in its consolidated statements of operations for such periods (in thousands): Three Months Ended March 31, 2020 Container Leasing Rail Leasing Logistics Total Total revenue $ 69,113 $ 5,803 $ 30,106 $ 105,022 Total operating expenses 36,639 21,374 30,977 88,990 Operating income (loss) 32,474 (15,571) (871) 16,032 Net interest and other expenses (income) 18,520 2,105 (3) 20,622 Income (loss) before income taxes $ 13,954 $ (17,676) $ (868) $ (4,590) Purchase of rental equipment (1) $ 27,500 $ - $ - $ 27,500 Three Months Ended March 31, 2019 Container Leasing Rail Leasing Logistics Total Total revenue $ 75,511 $ 7,881 $ 27,716 $ 111,108 Total operating expenses (income) 38,409 (1,212) 29,790 66,987 Operating income (loss) 37,102 9,093 (2,074) 44,121 Net interest and other expenses (income) 19,947 3,945 (4) 23,888 Income (loss) before income taxes $ 17,155 $ 5,148 $ (2,070) $ 20,233 Purchase of rental equipment (1) $ 108,090 $ 33,122 $ - $ 141,212 (1) Represents cash disbursements for purchasing of rental equipment as reflected in the consolidated statements of cash flows for the periods indicated. The summary below presents total assets for the Company's segments as of the dates indicated (in thousands): March 31, 2020 December 31, 2019 Container leasing $ 2,561,222 $ 2,565,828 Logistics (2) 42,917 42,478 Rail 274,339 293,459 Total assets $ 2,878,478 $ 2,901,765 (2) Includes goodwill of $15.8 million as of March 31, 2020 and December 31, 2019. Geographic Data The Company earns its revenue primarily from intermodal containers, which are deployed by its customers in a wide variety of global trade routes. Virtually 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. As such, substantially all of the Company’s long-lived assets are considered to be international, with no single country of use. The following table represents the geographic allocation of revenue for the periods indicated based on customers’ primary domicile (in thousands): Three Months Ended March 31, 2020 2019 United States $ 37,145 $ 37,366 Switzerland 12,516 14,048 Singapore 9,850 10,034 Korea 9,239 9,870 France 7,630 8,933 Other Europe 15,240 15,199 Other Asia 12,587 15,308 Other International 815 350 Total revenue $ 105,022 $ 111,108 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (14) Earnings Per Share Basic net (loss) income per share is computed based on the weighted average number of shares of common stock outstanding during each 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. The following table sets forth the reconciliation of basic and diluted net income per share for the three months ended March 31, 2020 and 2019 (in thousands, except per share data): Three Months Ended March 31, 2020 2019 Numerator Net (loss) income attributable to CAI common stockholders $ (3,537) $ 16,367 Denominator Weighted-average shares used in per share computation - basic 17,433 18,555 Effect of dilutive securities: Stock options and restricted stock - 315 Weighted-average shares used in per share computation - diluted 17,433 18,870 Net (loss) income per share attributable to CAI common stockholders: Basic $ (0.20) $ 0.88 Diluted $ (0.20) $ 0.87 Certain options, restricted stock and restricted stock units issued under employee benefits plans are excluded from the computation of diluted earnings per share because they were anti-dilutive. At March 31, 2020, all outstanding options, restricted stock and restricted stock units were excluded. At March 31, 2019 , 128,969 shares of stock options, restricted stock and restricted stock units were excluded. |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2020 | |
Description of Business and Significant Accounting Policies [Abstract] | |
Organization | Organization CAI International, Inc., together with its subsidiaries (collectively, CAI or the Company), is a transportation finance and logistics company. The Company purchases equipment, primarily intermodal shipping containers and railcars, which it leases to its customers. The Company also manages equipment for third-party investors. In operating its fleet, the Company leases, re-leases and disposes of equipment and contracts for the repair, repositioning and storage of equipment. The Company also provides domestic and international logistics services. The Company’s common stock, 8.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Stock and 8.50% Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Stock are traded on the New York Stock Exchange under the symbols “CAI,” “CAI-PA” and “CAI-PB,” respectively. The Company’s corporate headquarters are located in San Francisco, California. |
Basis Of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements include the financial statements of CAI International, Inc. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements contain all normal, recurring adjustments necessary to present fairly the Company’s financial position as of March 31, 2020 and December 31, 2019, the Company’s results of operations for the three months ended March 31, 2020 and 2019, and the Company’s cash flows for the three months ended March 31, 2020 and 2019. Certain reclassifications have been made to prior year financial statements to conform to the current presentation. 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 2020 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 (U.S. GAAP) 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, 2019, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 5, 2020. Due to market conditions, the Company decided during the three months ended March 31, 2020 to terminate the sale process for its rail business. As a result, the railcar assets have been reclassified as held for use as of March 31, 2020 and the rail business reclassified as a continuing operation. All prior periods presented in the unaudited consolidated financial statements have been restated to reflect the reclassification. See Note 3 – Rental Equipment for further information over the reclassification of the railcar assets as held for use. |
Concentration Of Credit Risk | Concentration of Credit Risk The Company’s equipment leases and trade receivables subject it to potential credit risk. The Company extends credit to its customers based upon an evaluation of each customer’s financial condition and credit history. Evaluations of the financial condition and associated credit risk of customers are performed an on ongoing basis. The Company’s largest customer accounted for 13% of the Company’s total billings during the three months ended March 31, 2020. |
Accounting Policy Updates | Accounting Policy Updates Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326) (ASU 2016-13) and subsequently issued amendments. The guidance affects the Company’s net investment in finance leases, financing receivable and accounts receivable for sales of rental equipment and logistics operations. Topic 326 requires the measurement of expected credit losses to be based on relevant information from past events, including historical experiences, current conditions and reasonable and supportable forecasts that affect collectability. The Company adopted ASU 2016-13 effective January 1, 2020, using the modified retrospective method, which did not have a significant impact on the consolidated financial statements as credit losses are not expected to be significant based on historical loss trends, the financial condition of customers, and external market factors. Allowance for credit losses – Net investment in finance leases and financing receivable The allowance for credit losses on net investment in finance leases and financing receivable is estimated on a collective basis by internal customer rating (see Note 4 – Net investment in finance leases for descriptions of ratings). Expected credit losses for these financial assets are estimated using a loss-rate methodology which considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Except as described above, there were no changes to the Company’s accounting policies during the three months ended March 31, 2020. See Note 2 to the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on March 5, 2020, for a description of the Company’s significant accounting policies. |
Rental Equipment (Tables)
Rental Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Rental Equipment [Abstract] | |
Schedule Of Rental Equipment | March 31, December 31, 2020 2019 Dry containers $ 1,881,637 $ 1,902,471 Refrigerated containers 277,013 282,155 Other specialized equipment 221,935 224,924 Railcars 294,875 314,279 2,675,460 2,723,829 Accumulated depreciation (640,118) (620,990) Rental equipment, net of accumulated depreciation $ 2,035,342 $ 2,102,839 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Components Of Lease Revenue | Three Months Ended March 31, 2020 2019 Lease revenue - operating leases $ 60,399 $ 69,197 Interest income on finance leases 11,623 11,390 Other revenue 2,217 2,805 Interest income on financing receivable 677 - Total lease revenue $ 74,916 $ 83,392 |
Components Of Net Investment In Direct Finance Leases | March 31, December 31, 2020 2019 Gross finance lease receivables (1) $ 783,471 $ 806,019 Unearned income (2) (228,420) (238,651) Net investment in finance leases 555,051 567,368 Allowance for credit losses (45) - Net investment in finance leases, net of allowance for credit losses $ 555,006 $ 567,368 (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 $74.3 million of unguaranteed residual value at March 31, 2020 and December 31, 2019, respectively, included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of March 31, 2020 and December 31, 2019. (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, 2020 and December 31, 2019. (3) One major customer represented 65% of the Company’s finance lease portfolio as of March 31, 2020 and December 31, 2019. No other customer represented more than 10% of the Company’s finance lease portfolio in each of those periods. |
Contractual Maturities Of Gross Finance Lease Receivables | 2021 $ 116,727 2022 109,491 2023 105,485 2024 85,857 2025 60,034 2026 and thereafter 305,877 $ 783,471 |
Summary Of Components Of Financing Receivable | March 31, December 31, 2020 2019 Gross financing receivable $ 43,957 $ 45,530 Unearned income (10,434) (11,111) 33,523 34,419 Allowance for credit losses (1) - Total financing receivable $ 33,522 $ 34,419 Amounts due within one year (1) 3,783 3,726 Amounts due beyond one year (2) 29,739 30,693 Total financing receivable $ 33,522 $ 34,419 (1) Included in prepaid expenses and other current assets in the consolidated balance sheets. (2) Included in financing receivable in the consolidated balance sheets. |
Finance Lease Receivables By Risk Categories | March 31, 2020 2020 2019 2018 2017 2016 Prior Total Net investment in finance leases Tier 1 $ 2,880 $ 59,580 $ 248,821 $ 171,092 $ 7,200 $ 1,654 $ 491,227 Tier 2 2,012 31,521 14,473 7,092 2,320 6,406 63,824 Tier 3 - - - - - - - Total net investment in finance leases $ 4,892 $ 91,101 $ 263,294 $ 178,184 $ 9,520 $ 8,060 $ 555,051 Financing receivable Tier 1 $ - $ 32,830 $ - $ - $ - $ - $ 32,830 Tier 2 - 693 - - - - 693 Tier 3 - - - - - - - Total financing receivable $ - $ 33,523 $ - $ - $ - $ - $ 33,523 Net investment in Financing December 31, 2019 finance leases receivable Tier 1 $ 502,265 $ 33,694 Tier 2 65,103 725 Tier 3 - - $ 567,368 $ 34,419 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Intangible Assets [Abstract] | |
Schedule Of Estimated Future Amortization Expenses | 2021 $ 1,609 2022 1,231 2023 474 2024 406 Total intangible assets $ 3,720 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt [Abstract] | |
Schedule Of Debt | March 31, 2020 December 31, 2019 Outstanding Average Outstanding Average Current Long-term Interest Current Long-term Interest Maturity Revolving credit $ - $ 682,000 2.4% $ - $ 624,000 3.3% June 2023 Revolving credit facility - Rail - 137,500 2.4% - 137,500 3.3% October 2023 Revolving credit facility - Euro 21,122 - 2.0% 21,537 - 2.0% September 2020 Term loan 1,800 25,050 3.9% 1,800 25,500 3.9% April 2023 Term loan 7,000 66,750 2.7% 7,000 68,500 3.5% June 2021 Term loan 14,967 - 3.4% 15,284 - 3.4% December 2020 Term loan 3,043 36,864 3.6% 3,016 37,635 3.6% August 2021 Term loan 6,000 85,000 4.6% 6,000 86,500 4.6% October 2023 Senior secured notes 6,110 43,610 4.9% 6,110 46,665 4.9% September 2022 Asset-backed notes 2012-1 17,100 27,075 3.5% 17,100 31,350 3.5% October 2027 Asset-backed notes 2013-1 22,900 45,800 3.4% 22,900 51,525 3.4% March 2028 Asset-backed notes 2017-1 25,307 158,169 3.7% 25,307 164,496 3.7% June 2042 Asset-backed notes 2018-1 34,890 241,323 4.0% 34,890 250,045 4.0% February 2043 Asset-backed notes 2018-2 34,350 257,625 4.4% 34,350 266,213 4.4% September 2043 Collateralized financing obligations 20,595 61,617 1.6% 21,681 69,615 1.5% February 2026 Term loans held by VIE 5,311 29,884 4.2% 5,250 31,234 4.2% February 2026 220,495 1,898,267 222,225 1,890,778 Debt issuance costs (3,976) (9,633) (4,131) (10,656) Total Debt $ 216,519 $ 1,888,634 $ 218,094 $ 1,880,122 |
Stock-Based Compensation Plan (
Stock-Based Compensation Plan (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stock-Based Compensation Plan [Abstract] | |
Summary Of Stock Option Activities | Three Months Ended March 31, 2020 2019 Weighted Weighted Average Average Number of Exercise Number of Exercise Shares Price Shares Price Options outstanding at January 1 646,946 $ 16.96 850,167 $ 16.46 Options exercised (7,750) $ 14.54 (46,917) $ 14.04 Options outstanding at March 31 639,196 $ 16.98 803,250 $ 16.60 Options exercisable 584,652 $ 17.25 642,762 $ 17.47 Weighted average remaining term 5.2 years 5.5 years |
Summary Of Restricted Stock and Performance Stock Activity | Weighted Average Number of Grant Date Shares Fair Value Outstanding at December 31, 2019 281,736 $ 23.18 Granted 94,497 $ 28.63 Vested (44,046) $ 22.59 Outstanding at March 31, 2020 332,187 $ 24.81 |
Segment And Geographic Inform_2
Segment And Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment And Geographic Information [Abstract] | |
Schedule Of Segment Information | Three Months Ended March 31, 2020 Container Leasing Rail Leasing Logistics Total Total revenue $ 69,113 $ 5,803 $ 30,106 $ 105,022 Total operating expenses 36,639 21,374 30,977 88,990 Operating income (loss) 32,474 (15,571) (871) 16,032 Net interest and other expenses (income) 18,520 2,105 (3) 20,622 Income (loss) before income taxes $ 13,954 $ (17,676) $ (868) $ (4,590) Purchase of rental equipment (1) $ 27,500 $ - $ - $ 27,500 Three Months Ended March 31, 2019 Container Leasing Rail Leasing Logistics Total Total revenue $ 75,511 $ 7,881 $ 27,716 $ 111,108 Total operating expenses (income) 38,409 (1,212) 29,790 66,987 Operating income (loss) 37,102 9,093 (2,074) 44,121 Net interest and other expenses (income) 19,947 3,945 (4) 23,888 Income (loss) before income taxes $ 17,155 $ 5,148 $ (2,070) $ 20,233 Purchase of rental equipment (1) $ 108,090 $ 33,122 $ - $ 141,212 (1) Represents cash disbursements for purchasing of rental equipment as reflected in the consolidated statements of cash flows for the periods indicated. |
Summary Of Total Assets For Segments | March 31, 2020 December 31, 2019 Container leasing $ 2,561,222 $ 2,565,828 Logistics (2) 42,917 42,478 Rail 274,339 293,459 Total assets $ 2,878,478 $ 2,901,765 (2) Includes goodwill of $15.8 million as of March 31, 2020 and December 31, 2019. |
Schedule Of Geographic Allocation Of Revenue | Three Months Ended March 31, 2020 2019 United States $ 37,145 $ 37,366 Switzerland 12,516 14,048 Singapore 9,850 10,034 Korea 9,239 9,870 France 7,630 8,933 Other Europe 15,240 15,199 Other Asia 12,587 15,308 Other International 815 350 Total revenue $ 105,022 $ 111,108 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation Of Basic And Diluted Net Income Per Share | Three Months Ended March 31, 2020 2019 Numerator Net (loss) income attributable to CAI common stockholders $ (3,537) $ 16,367 Denominator Weighted-average shares used in per share computation - basic 17,433 18,555 Effect of dilutive securities: Stock options and restricted stock - 315 Weighted-average shares used in per share computation - diluted 17,433 18,870 Net (loss) income per share attributable to CAI common stockholders: Basic $ (0.20) $ 0.88 Diluted $ (0.20) $ 0.87 |
Description of Business and S_3
Description of Business and Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Total Billings [Member] | Customer Concentration Risk [Member] | ||
Business Acquisition [Line Items] | ||
Concentration percentage | 13.00% | |
Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Business Acquisition [Line Items] | ||
Preferred stock, dividend rate | 8.50% | 8.50% |
Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock [Member] | ||
Business Acquisition [Line Items] | ||
Preferred stock, dividend rate | 8.50% | 8.50% |
Consolidation of Variable Int_2
Consolidation of Variable Interest Entities (Details) | 3 Months Ended | |||
Mar. 31, 2020USD ($)item | Mar. 31, 2019USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Variable Interest Entity [Line Items] | ||||
Net book value | $ 2,035,342,000 | $ 2,102,839,000 | ||
Collateralized Financing Obligations [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Long-term debt | 82,200,000 | |||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Net book value | 98,758,000 | 101,907,000 | ||
Cash | 21,016,000 | $ 27,058,000 | $ 26,594,000 | $ 25,211,000 |
Variable Interest Entity, Primary Beneficiary [Member] | Term Loan [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Long-term debt | $ 35,200,000 | |||
Variable Interest Entity, Primary Beneficiary [Member] | Containers [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Number of types of container fund arrangements | item | 2 | |||
Number of container portfolios sold | item | 0 | 0 | ||
Net book value | $ 103,400,000 | |||
Cash | 21,000,000 | |||
Gain (loss) recognized on initial consolidation of VIEs | 0 | |||
Book value of containers sold | $ 65,000,000 | |||
Number of containers sold | item | 0 |
Rental Equipment (Narrative) (D
Rental Equipment (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Property, Plant and Equipment [Line Items] | |
Impairment of rental equipment | $ 19,167 |
Railcar Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Residual Value, Percentage | 10.00% |
Rental Equipment (Schedule Of R
Rental Equipment (Schedule Of Rental Equipment) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Rental equipment, gross | $ 2,675,460 | $ 2,723,829 |
Accumulated depreciation | (640,118) | (620,990) |
Rental equipment, net of accumulated depreciation | 2,035,342 | 2,102,839 |
Dry Containers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental equipment, gross | 1,881,637 | 1,902,471 |
Refrigerated Containers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental equipment, gross | 277,013 | 282,155 |
Other Specialized Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental equipment, gross | 221,935 | 224,924 |
Railcar Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental equipment, gross | $ 294,875 | $ 314,279 |
Leases (Components Of Lease Rev
Leases (Components Of Lease Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Lease revenue - operating leases | $ 60,399 | $ 69,197 |
Interest income on financing leases | 11,623 | 11,390 |
Other revenue | 2,217 | 2,805 |
Interest income on financing receivable | 677 | |
Total lease revenue | $ 74,916 | $ 83,392 |
Leases (Components Of Net Inves
Leases (Components Of Net Investment In Direct Finance Leases) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($)customer | Dec. 31, 2019USD ($)customer | ||
Gross finance lease receivables | [1] | $ 783,471 | $ 806,019 |
Unearned income | [2] | (228,420) | (238,651) |
Net investment in finance leases | 555,051 | 567,368 | |
Allowance for credit losses | (45) | ||
Net investment in finance leases, net of allowance for credit losses | 555,006 | 567,368 | |
Unguaranteed residual value | 74,300 | 74,300 | |
Executory costs | 0 | 0 | |
Unamortized initial direct costs | $ 0 | $ 0 | |
Finance Lease [Member] | Customer Concentration Risk [Member] | |||
Number of major customers | customer | 1 | 1 | |
Concentration percentage | 65.00% | 65.00% | |
[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 $74.3 million of unguaranteed residual value at March 31, 2020 and December 31, 2019, respectively, included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of March 31, 2020 and December 31, 2019. | ||
[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, 2020 and December 31, 2019. |
Leases (Contractual Maturities
Leases (Contractual Maturities Of Gross Finance Lease Receivables) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 116,727 |
2022 | 109,491 |
2023 | 105,485 |
2024 | 85,857 |
2025 | 60,034 |
2026 and thereafter | 305,877 |
Gross finance lease receivables | $ 783,471 |
Leases (Summary Of Components O
Leases (Summary Of Components Of Financing Receivable) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable [Abstract] | |||
Gross financing receivable | $ 43,957 | $ 45,530 | |
Unearned Income | (10,434) | (11,111) | |
Financing receivable | 33,523 | 34,419 | |
Allowance for credit losses | (1) | ||
Total financing receivable | 33,522 | 34,419 | |
Amounts due within one year | [1] | 3,783 | 3,726 |
Amounts due beyond one year | [2] | $ 29,739 | $ 30,693 |
[1] | Included in prepaid expenses and other current assets in the consolidated balance sheets. | ||
[2] | Included in financing receivable in the consolidated balance sheets. |
Leases (Finance Lease Receivabl
Leases (Finance Lease Receivables By Risk Categories) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Net investment in finance leases, 2020 | $ 4,892 | |
Net investment in finance leases, 2019 | 91,101 | |
Net investment in finance leases, 2018 | 263,294 | |
Net investment in finance leases, 2017 | 178,184 | |
Net investment in finance leases, 2016 | 9,520 | |
Net investment in finance leases, Prior | 8,060 | |
Total net investment in finance leases | 555,051 | $ 567,368 |
Financing receivable, 2019 | 33,523 | |
Total financing receivable | 33,523 | 34,419 |
Tier 1 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Net investment in finance leases, 2020 | 2,880 | |
Net investment in finance leases, 2019 | 59,580 | |
Net investment in finance leases, 2018 | 248,821 | |
Net investment in finance leases, 2017 | 171,092 | |
Net investment in finance leases, 2016 | 7,200 | |
Net investment in finance leases, Prior | 1,654 | |
Total net investment in finance leases | 491,227 | 502,265 |
Financing receivable, 2019 | 32,830 | |
Total financing receivable | 32,830 | 33,694 |
Tier 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Net investment in finance leases, 2020 | 2,012 | |
Net investment in finance leases, 2019 | 31,521 | |
Net investment in finance leases, 2018 | 14,473 | |
Net investment in finance leases, 2017 | 7,092 | |
Net investment in finance leases, 2016 | 2,320 | |
Net investment in finance leases, Prior | 6,406 | |
Total net investment in finance leases | 63,824 | 65,103 |
Financing receivable, 2019 | 693 | |
Total financing receivable | $ 693 | 725 |
Tier 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total net investment in finance leases | ||
Total financing receivable |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Intangible Assets [Abstract] | ||
Amortization expense | $ 403 | $ 403 |
Intangible Assets (Schedule Of
Intangible Assets (Schedule Of Estimated Future Amortization Expenses) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Intangible Assets [Abstract] | ||
2021 | $ 1,609 | |
2022 | 1,231 | |
2023 | 474 | |
2024 | 406 | |
Net Carrying Amount | $ 3,720 | $ 4,123 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - Revolving Credit Facility [Member] $ in Millions | 1 Months Ended |
Mar. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |
Maximum credit commitment | $ 536.8 |
Available borrowing capacity | 41 |
Proceeds from credit facility | 70 |
Consortium of Banks [Member] | |
Debt Instrument [Line Items] | |
Letters of credit outstanding | $ 0.1 |
Debt (Schedule Of Debt) (Detail
Debt (Schedule Of Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 220,495 | $ 222,225 |
Gross Debt, Long-term Outstanding | 1,898,267 | 1,890,778 |
Debt issuance costs, Current Outstanding | (3,976) | (4,131) |
Debt issuance costs, Long-term Outstanding | (9,633) | (10,656) |
Total Debt, Current Outstanding | 216,519 | 218,094 |
Total Debt, Long-term Outstanding | 1,888,634 | 1,880,122 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt, Current Outstanding | 25,906 | 26,931 |
Total Debt, Long-term Outstanding | 91,501 | 100,849 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Long-term Outstanding | $ 682,000 | $ 624,000 |
Average Interest | 2.40% | 3.30% |
Maturity | Jun. 1, 2023 | |
Revolving Credit Facility [Member] | CAI Rail [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Long-term Outstanding | $ 137,500 | $ 137,500 |
Average Interest | 2.40% | 3.30% |
Maturity | Oct. 1, 2023 | |
Revolving Credit Facility [Member] | CAI Euro [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 21,122 | $ 21,537 |
Average Interest | 2.00% | 2.00% |
Maturity | Sep. 1, 2020 | |
Term Loan [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 5,311 | $ 5,250 |
Gross Debt, Long-term Outstanding | $ 29,884 | $ 31,234 |
Average Interest | 4.20% | 4.20% |
Maturity | Feb. 1, 2026 | |
Term Loan [Member] | Term Loan Due April 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 1,800 | $ 1,800 |
Gross Debt, Long-term Outstanding | $ 25,050 | $ 25,500 |
Average Interest | 3.90% | 3.90% |
Maturity | Apr. 1, 2023 | |
Term Loan [Member] | Term Loan Due June 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 7,000 | $ 7,000 |
Gross Debt, Long-term Outstanding | $ 66,750 | $ 68,500 |
Average Interest | 2.70% | 3.50% |
Maturity | Jun. 1, 2021 | |
Term Loan [Member] | Term Loan Due December 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 14,967 | $ 15,284 |
Average Interest | 3.40% | 3.40% |
Maturity | Dec. 1, 2020 | |
Term Loan [Member] | Term Loan Due August 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 3,043 | $ 3,016 |
Gross Debt, Long-term Outstanding | $ 36,864 | $ 37,635 |
Average Interest | 3.60% | 3.60% |
Maturity | Aug. 1, 2021 | |
Term Loan [Member] | Term Loan Due October 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 6,000 | $ 6,000 |
Gross Debt, Long-term Outstanding | $ 85,000 | $ 86,500 |
Average Interest | 4.60% | 4.60% |
Maturity | Oct. 1, 2023 | |
Senior Secured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 6,110 | $ 6,110 |
Gross Debt, Long-term Outstanding | $ 43,610 | $ 46,665 |
Average Interest | 4.90% | 4.90% |
Maturity | Sep. 1, 2022 | |
Collateralized Financing Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 20,595 | $ 21,681 |
Gross Debt, Long-term Outstanding | $ 61,617 | $ 69,615 |
Average Interest | 1.60% | 1.50% |
Maturity | Feb. 1, 2026 | |
Series 2012-1 Asset-Backed Notes [Member] | Asset Backed Notes [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 17,100 | $ 17,100 |
Gross Debt, Long-term Outstanding | $ 27,075 | $ 31,350 |
Average Interest | 3.50% | 3.50% |
Maturity | Oct. 1, 2027 | |
Series 2013-1 Asset-Backed Notes [Member] | Asset Backed Notes [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 22,900 | $ 22,900 |
Gross Debt, Long-term Outstanding | $ 45,800 | $ 51,525 |
Average Interest | 3.40% | 3.40% |
Maturity | Mar. 1, 2028 | |
Series 2017-1 Asset-Backed Notes [Member] | Asset Backed Notes [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 25,307 | $ 25,307 |
Gross Debt, Long-term Outstanding | $ 158,169 | $ 164,496 |
Average Interest | 3.70% | 3.70% |
Maturity | Jun. 1, 2042 | |
Series 2018-1 Asset-Backed Notes [Member] | Asset Backed Notes [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 34,890 | $ 34,890 |
Gross Debt, Long-term Outstanding | $ 241,323 | $ 250,045 |
Average Interest | 4.00% | 4.00% |
Maturity | Feb. 1, 2043 | |
Series 2018-2 Asset-Backed Notes [Member] | Asset Backed Notes [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 34,350 | $ 34,350 |
Gross Debt, Long-term Outstanding | $ 257,625 | $ 266,213 |
Average Interest | 4.40% | 4.40% |
Maturity | Sep. 1, 2043 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plan (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options available for grant | 2,577,075 | ||
Vesting period of awards | 4 years | ||
Contractual term | 10 years | ||
Aggregate intrinsic value of options exercised | $ 0.1 | $ 0.5 | |
Closing price per share | $ 14.14 | ||
Stock-based compensation expense recorded | $ 0.2 | $ 0.2 | |
Remaining unamortized stock-based compensation cost | $ 0.4 | ||
Stock-based compensation cost recognition period | 8 months 12 days | ||
Options granted, Number of Shares | 0 | 0 | |
Aggregate intrinsic value of options outstanding | $ 1 | ||
Stock options [Member] | Tranche One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25.00% | ||
Stock options [Member] | Tranche Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 2.083% | ||
Stock options [Member] | Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of awards | 1 year | ||
Restricted Stock [Member] | Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of awards | 4 years | ||
Restricted Stock [Member] | Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of awards | 1 year | ||
Restricted Stock and Performance Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recorded | $ 0.7 | $ 0.6 | |
Remaining unamortized stock-based compensation cost | $ 5.8 | ||
Stock-based compensation cost recognition period | 2 years 1 month 6 days | ||
Restricted Stock and Performance Stock [Member] | Employees [Member] | Each Anniversary Of Grant Date [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25.00% | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of awards | 3 years | ||
Stock-based compensation cost recognition period | 3 years | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share authorized for issuance | 250,000 | ||
Issuance of common stock | 0 | ||
Employee Stock Purchase Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recorded | $ 0.1 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plan (Summary Of Stock Option Activities) (Details) - Stock options [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding at beginning of period, Number of Shares | 646,946 | 850,167 |
Options exercised, Number of Shares | (7,750) | (46,917) |
Options outstanding at end of period, Number of Shares | 639,196 | 803,250 |
Options exercisable, Number of Shares | 584,652 | 642,762 |
Options outstanding at beginning of period, Weighted Average Exercise Price | $ 16.96 | $ 16.46 |
Options exercised, Weighted Average Exercise Price | 14.54 | 14.04 |
Options outstanding at end of period, Weighted Average Exercise Price | 16.98 | 16.60 |
Options exercisable, Weighted Average Exercise Price | $ 17.25 | $ 17.47 |
Weighted average remaining term | 5 years 2 months 12 days | 5 years 6 months |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plan (Summary Of Restricted Stock and Performance Stock Activity) (Details) - Restricted Stock and Performance Stock [Member] | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding at beginning of period | shares | 281,736 |
Number of Shares, Granted | shares | 94,497 |
Number of Shares, Vested | shares | (44,046) |
Number of Shares, Outstanding at end of period | shares | 332,187 |
Weighted Average Grant Date Fair Value, Outstanding at beginning of period | $ / shares | $ 23.18 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 28.63 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 22.59 |
Weighted Average Grant Date Fair Value, Outstanding at end of period | $ / shares | $ 24.81 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Taxes [Abstract] | ||
Effective tax rate | 9.10% | 8.20% |
Discrete items impaiment charge | $ 19.2 | |
Income tax benefit as a result from discrete items | $ 4.5 | |
Minimum percentage realization for recognition of income tax position | 50.00% | |
Unrecognized tax benefits | $ 0.3 | |
Total accrued interest relating to unrecognized tax benefits | $ 0.1 |
Fair Value Of Financial Instr_2
Fair Value Of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and Leases Receivable, Net Amount | $ 33,522 | $ 34,419 |
Carrying Amount [Member] | Fixed-Rate Term Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 148,400 | |
Carrying Amount [Member] | Asset Backed Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 864,500 | 898,200 |
Carrying Amount [Member] | Collateralized Financing Obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 82,200 | 91,300 |
Carrying Amount [Member] | Senior Secured Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 49,700 | 52,800 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and Leases Receivable, Net Amount | 33,500 | 34,400 |
Fair Value [Member] | Fixed-Rate Term Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 145,900 | |
Fair Value [Member] | Fixed-Rate Term Loans [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 151,000 | |
Fair Value [Member] | Asset Backed Notes [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 836,800 | 911,000 |
Fair Value [Member] | Collateralized Financing Obligations [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 83,300 | 93,000 |
Variable Interest Entity, Primary Beneficiary [Member] | Carrying Amount [Member] | Term Loan [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 35,200 | $ 36,500 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Millions | Mar. 31, 2020USD ($) |
Containers [Member] | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Commitments to purchase rental equipment | $ 3.8 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Oct. 31, 2018 | |
Stockholders’ Equity [Abstract] | ||
Shares authorized for repurchase | 3,000,000 | |
Shares repurchased | 0 | |
Shares remained available for repurchase | $ 1 |
Related Parties Transactions (D
Related Parties Transactions (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Related Parties Transactions [Abstract] | ||
Income tax liabilities related to stock-based compensation | $ 1.2 | $ 1.2 |
Current asset, reimbursement from officer | $ 1.2 | $ 1.2 |
Segment And Geographic Inform_3
Segment And Geographic Information (Schedule Of Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 105,022 | $ 111,108 | |
Total operating expenses (income) | 88,990 | 66,987 | |
Operating income | 16,032 | 44,121 | |
Net interest and other expenses (income) | 20,622 | 23,888 | |
(Loss) income before income taxes | (4,590) | 20,233 | |
Purchase of rental equipment | [1] | 27,500 | 141,212 |
Operating Segments [Member] | Container Leasing [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 69,113 | 75,511 | |
Total operating expenses (income) | 36,639 | 38,409 | |
Operating income | 32,474 | 37,102 | |
Net interest and other expenses (income) | 18,520 | 19,947 | |
(Loss) income before income taxes | 13,954 | 17,155 | |
Purchase of rental equipment | [1] | 27,500 | 108,090 |
Operating Segments [Member] | Rail Leasing [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 5,803 | 7,881 | |
Total operating expenses (income) | 21,374 | (1,212) | |
Operating income | (15,571) | 9,093 | |
Net interest and other expenses (income) | 2,105 | 3,945 | |
(Loss) income before income taxes | (17,676) | 5,148 | |
Purchase of rental equipment | [1] | 33,122 | |
Operating Segments [Member] | Logistics [Member] | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 30,106 | 27,716 | |
Total operating expenses (income) | 30,977 | 29,790 | |
Operating income | (871) | (2,074) | |
Net interest and other expenses (income) | (3) | (4) | |
(Loss) income before income taxes | $ (868) | $ (2,070) | |
[1] | Represents cash disbursements for purchasing of rental equipment as reflected in the consolidated statements of cash flows for the periods indicated. |
Segment And Geographic Inform_4
Segment And Geographic Information (Summary Of Total Assets For Segments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | [1] | $ 2,878,478 | $ 2,901,765 |
Goodwill | 15,794 | 15,794 | |
Operating Segments [Member] | Container Leasing [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 2,561,222 | 2,565,828 | |
Operating Segments [Member] | Logistics [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | [2] | 42,917 | 42,478 |
Goodwill | 15,800 | 15,800 | |
Operating Segments [Member] | Rail [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 274,339 | $ 293,459 | |
[1] | Total assets at March 31, 2020 and December 31, 2019 include the following assets of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs: Cash, $21,016 and $26,594; Net investment in direct finance leases, $4,614 and $4,790; and Rental equipment, net of accumulated depreciation, $98,758, and $101,907, respectively. | ||
[2] | Includes goodwill of $15.8 million as of March 31, 2020 and December 31, 2019. |
Segment And Geographic Inform_5
Segment And Geographic Information (Schedule Of Geographic Allocation Of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | $ 105,022 | $ 111,108 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 37,145 | 37,366 |
Switzerland [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 12,516 | 14,048 |
Singapore [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 9,850 | 10,034 |
Korea [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 9,239 | 9,870 |
France [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 7,630 | 8,933 |
Other Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 15,240 | 15,199 |
Other Asia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 12,587 | 15,308 |
Other International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | $ 815 | $ 350 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019shares | |
Stock options [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Securities having antidilutive effect | 128,969 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation Of Basic And Diluted Net Income Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net (loss) income attributable to CAI common stockholders | $ (3,537) | $ 16,367 |
Weighted-average shares used in per share computation - basic | 17,433,000 | 18,555,000 |
Effect of dilutive securities: Stock options and restricted stock | 315,000 | |
Weighted-average shares used in per share computation - diluted | 17,433,000 | 18,870,000 |
Basic | $ (0.20) | $ 0.88 |
Diluted | $ (0.20) | $ 0.87 |