Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 29, 2021 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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 | |
Entity Address, Address Line Two | 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 | 17,357,549 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
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 | Jun. 30, 2021 | Dec. 31, 2020 | |
Current assets | |||
Current portion of restricted cash | $ 600 | $ 600 | |
Accounts receivable, net of allowance for doubtful accounts of $418 and $393 at June 30, 2021 and December 31, 2020, respectively | 63,917 | 65,310 | |
Current portion of net investment in finance leases | 87,830 | 78,992 | |
Current portion of financing receivable | 14,354 | 9,550 | |
Prepaid expenses and other current assets | 5,405 | 6,663 | |
Total current assets | 210,916 | 214,662 | |
Restricted cash | 11,819 | 12,355 | |
Rental equipment, net of accumulated depreciation of $715,911 and $669,360 at June 30, 2021 and December 31, 2020, respectively | 1,944,221 | 1,781,321 | |
Net investment in finance leases | 728,971 | 550,573 | |
Financing receivable | 47,798 | 48,888 | |
Derivative instruments | 7,830 | ||
Other non-current assets | 3,793 | 4,833 | |
Total assets | [1] | 2,955,348 | 2,612,632 |
Current liabilities | |||
Accounts payable | 4,380 | 3,666 | |
Accrued expenses and other current liabilities | 31,921 | 29,598 | |
Unearned revenue | 2,438 | 3,029 | |
Current portion of debt | 116,433 | 183,448 | |
Rental equipment payable | 311,871 | 100,509 | |
Total current liabilities | 467,043 | 320,250 | |
Debt | 1,706,731 | 1,562,283 | |
Derivative instruments | 80 | ||
Net deferred income tax liability | 22,324 | 24,442 | |
Other non-current liabilities | 2,989 | 3,337 | |
Total liabilities | [2] | 2,199,087 | 1,910,392 |
Stockholders' equity | |||
Common stock, par value $0.0001 per share; authorized 84,000,000 shares; issued and outstanding 17,357,549 and 17,562,779 shares at June 30, 2021 and December 31, 2020, respectively | 2 | 2 | |
Additional paid-in capital | 90,098 | 100,795 | |
Accumulated other comprehensive loss | 96 | (5,743) | |
Retained earnings | 562,200 | 503,321 | |
Total stockholders' equity | 756,261 | 702,240 | |
Total liabilities and stockholders' equity | 2,955,348 | 2,612,632 | |
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 | 17,554 | 26,691 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Current assets | |||
Cash | 21,256 | 26,856 | |
Rental equipment, net of accumulated depreciation of $715,911 and $669,360 at June 30, 2021 and December 31, 2020, respectively | 68,579 | 77,907 | |
Net investment in finance leases | 1,813 | 2,683 | |
Current liabilities | |||
Current portion of debt | 42,542 | 41,344 | |
Debt | $ 40,407 | $ 59,519 | |
[1] | Total assets at June 30, 2021 and December 31, 2020 include the following assets of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs: Cash, $ 21,256 and $ 26,856 ; Net investment in finance leases, $ 1,813 and $ 2,683 ; and Rental equipment, net of accumulated depreciation, $ 68,579 , and $ 77,907 , respectively. | ||
[2] | Total liabilities at June 30, 2021 and December 31, 2020 include the following VIE liabilities for which the VIE creditors do not have recourse to CAI International, Inc.: Current portion of debt, $ 42,542 and $ 41,344 ; Debt, $ 40,407 and $ 59,519 , respectively. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Current assets | ||
Accounts receivable, allowance for doubtful accounts | $ 418 | $ 393 |
Rental equipment net of accumulated depreciation | 1,944,221 | 1,781,321 |
Rental equipment, accumulated depreciation | 715,911 | 669,360 |
Net investment in direct finance leases | 728,971 | 550,573 |
Current liabilities | ||
Current portion of debt | 116,433 | 183,448 |
Debt | $ 1,706,731 | $ 1,562,283 |
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 | 17,357,549 | 17,562,779 |
Common stock, shares outstanding | 17,357,549 | 17,562,779 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Current assets | ||
Cash | $ 21,256 | $ 26,856 |
Rental equipment net of accumulated depreciation | 68,579 | 77,907 |
Net investment in direct finance leases | 1,813 | 2,683 |
Current liabilities | ||
Current portion of debt | 42,542 | 41,344 |
Debt | $ 40,407 | $ 59,519 |
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 ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | ||||
Total leasing revenue | $ 85,695 | $ 69,443 | $ 166,495 | $ 138,556 |
Operating expenses | ||||
Depreciation of rental equipment | 29,270 | 26,750 | 57,821 | 53,798 |
Storage, handling and other expenses | 2,444 | 5,163 | 4,933 | 9,592 |
Gain on sale of rental equipment | (7,026) | (1,788) | (13,769) | (3,435) |
Administrative expenses | 10,168 | 6,825 | 17,908 | 13,720 |
Total operating expenses | 34,856 | 36,950 | 66,893 | 73,675 |
Operating income | 50,839 | 32,493 | 99,602 | 64,881 |
Other expenses | ||||
Net interest expense | 11,114 | 15,702 | 22,286 | 33,976 |
Write-off of debt issuance costs | 432 | 432 | ||
Other (income) expense | (74) | (97) | 336 | 149 |
Total other expenses | 11,040 | 16,037 | 22,622 | 34,557 |
Income before income taxes | 39,799 | 16,456 | 76,980 | 30,324 |
Income tax expense | 1,856 | 904 | 4,360 | 2,103 |
Income from continuing operations | 37,943 | 15,552 | 72,620 | 28,221 |
Income (loss) from discontinued operations, net of income taxes | (16,178) | 1,063 | (30,177) | |
Net income (loss) | 37,943 | (626) | 73,683 | (1,956) |
Preferred stock dividends | 2,207 | 2,207 | 4,414 | 4,414 |
Net income (loss) attributable to CAI common stockholders | 35,736 | (2,833) | 69,269 | (6,370) |
Amounts attributable to CAI common stockholders | ||||
Net income from continuing operations | $ 35,736 | 13,345 | 68,206 | 23,807 |
Net (loss) income from discontinued operations | $ (16,178) | $ 1,063 | $ (30,177) | |
Basic | ||||
Continuing operations | $ 2.07 | $ 0.76 | $ 3.95 | $ 1.36 |
Discontinued operations | (0.92) | 0.06 | (1.73) | |
Total basic | 2.07 | (0.16) | 4.01 | (0.37) |
Diluted | ||||
Continuing operations | 2.04 | 0.76 | 3.90 | 1.35 |
Discontinued operations | (0.92) | 0.06 | (1.71) | |
Total diluted | $ 2.04 | $ (0.16) | $ 3.96 | $ (0.36) |
Weighted average shares outstanding | ||||
Basic | 17,281 | 17,470 | 17,276 | 17,451 |
Diluted | 17,479 | 17,601 | 17,504 | 17,641 |
Operating Leases [Member] | ||||
Revenue | ||||
Total leasing revenue | $ 65,821 | $ 54,750 | $ 129,688 | $ 109,378 |
Finance Leases [Member] | ||||
Revenue | ||||
Total leasing revenue | 14,259 | 11,260 | 27,504 | 22,850 |
Operating expenses | ||||
Gain on sale of rental equipment | (200) | |||
Other Revenue [Member] | ||||
Revenue | ||||
Total leasing revenue | $ 5,615 | $ 3,433 | $ 9,303 | $ 6,328 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | ||||
Net income (loss) | $ 37,943 | $ (626) | $ 73,683 | $ (1,956) |
Other comprehensive income (loss), net of tax: | ||||
Change in fair value of derivative instruments designated as cash flow hedges | (1,990) | 7,519 | ||
Reclassification of realized loss on derivative instruments designated as cash flow hedges | 234 | 391 | ||
Foreign currency translation adjustments | 113 | 101 | (409) | (36) |
Comprehensive income (loss) before tax | 36,300 | (525) | 81,184 | (1,992) |
Income tax benefit (expense) related to items of other comprehensive income (loss) | 369 | (1,662) | ||
Comprehensive income (loss) before preferred stock dividends, net of tax | 36,669 | (525) | 79,522 | (1,992) |
Dividends on preferred stock | (2,207) | (2,207) | (4,414) | (4,414) |
Comprehensive income (loss) available to CAI common stockholders | $ 34,462 | $ (2,732) | $ 75,108 | $ (6,406) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ 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, 2019 | $ 103,865 | $ 2 | $ 102,709 | $ (6,630) | $ 493,294 | $ 693,240 |
Balances, Shares at Dec. 31, 2019 | 4,155 | 17,479 | ||||
Net income (loss) | (1,330) | (1,330) | ||||
Preferred stock dividends, $0.53125/share | (2,207) | (2,207) | ||||
Foreign currency translation adjustment | (137) | (137) | ||||
Exercise of stock options | 113 | 113 | ||||
Exercise of stock options, Shares | 8 | |||||
Stock-based compensation, net of taxes | 468 | 468 | ||||
Stock-based compensation, net of taxes, Shares | 19 | |||||
Balances at Mar. 31, 2020 | $ 103,865 | $ 2 | 103,290 | (6,767) | 489,757 | 690,147 |
Balances, Shares at Mar. 31, 2020 | 4,155 | 17,506 | ||||
Balances at Dec. 31, 2019 | $ 103,865 | $ 2 | 102,709 | (6,630) | 493,294 | 693,240 |
Balances, Shares at Dec. 31, 2019 | 4,155 | 17,479 | ||||
Net income (loss) | (1,956) | |||||
Preferred stock dividends, $0.53125/share | (4,414) | |||||
Balances at Jun. 30, 2020 | $ 103,865 | $ 2 | 103,342 | (6,666) | 486,924 | 687,467 |
Balances, Shares at Jun. 30, 2020 | 4,155 | 17,553 | ||||
Balances at Mar. 31, 2020 | $ 103,865 | $ 2 | 103,290 | (6,767) | 489,757 | 690,147 |
Balances, Shares at Mar. 31, 2020 | 4,155 | 17,506 | ||||
Net income (loss) | (626) | (626) | ||||
Preferred stock dividends, $0.53125/share | (2,207) | (2,207) | ||||
Foreign currency translation adjustment | 101 | 101 | ||||
Exercise of stock options, Shares | 3 | |||||
Stock-based compensation, net of taxes | 52 | 52 | ||||
Stock-based compensation, net of taxes, Shares | 44 | |||||
Balances at Jun. 30, 2020 | $ 103,865 | $ 2 | 103,342 | (6,666) | 486,924 | 687,467 |
Balances, Shares at Jun. 30, 2020 | 4,155 | 17,553 | ||||
Balances at Dec. 31, 2020 | $ 103,865 | $ 2 | 100,795 | (5,743) | 503,321 | 702,240 |
Balances, Shares at Dec. 31, 2020 | 4,155 | 17,563 | ||||
Net income (loss) | 35,740 | 35,740 | ||||
Common stock dividend declared, $0.30/share | (5,192) | (5,192) | ||||
Preferred stock dividends, $0.53125/share | (2,207) | (2,207) | ||||
Change in fair value of derivative instruments designated as cash flow hedges | 9,509 | 9,509 | ||||
Reclassification of realized loss on derivative instruments designated as cash flow hedges | 157 | 157 | ||||
Foreign currency translation adjustment | (522) | (522) | ||||
Income tax expense related to items of other comprehensive income | (2,031) | (2,031) | ||||
Repurchase of common stock | (12,788) | (12,788) | ||||
Repurchase of common stock, Shares | (390) | |||||
Exercise of stock options | 1,499 | 1,499 | ||||
Exercise of stock options, Shares | 107 | |||||
Stock-based compensation, net of taxes | (198) | (198) | ||||
Stock-based compensation, net of taxes, Shares | 24 | |||||
Balances at Mar. 31, 2021 | $ 103,865 | $ 2 | 89,308 | 1,370 | 531,662 | 726,207 |
Balances, Shares at Mar. 31, 2021 | 4,155 | 17,304 | ||||
Balances at Dec. 31, 2020 | $ 103,865 | $ 2 | 100,795 | (5,743) | 503,321 | 702,240 |
Balances, Shares at Dec. 31, 2020 | 4,155 | 17,563 | ||||
Net income (loss) | 73,683 | |||||
Preferred stock dividends, $0.53125/share | (4,414) | |||||
Income tax expense related to items of other comprehensive income | (1,662) | |||||
Repurchase of common stock | $ (12,800) | |||||
Repurchase of common stock, Shares | (400) | |||||
Balances at Jun. 30, 2021 | $ 103,865 | $ 2 | 90,098 | 96 | 562,200 | $ 756,261 |
Balances, Shares at Jun. 30, 2021 | 4,155 | 17,358 | ||||
Balances at Mar. 31, 2021 | $ 103,865 | $ 2 | 89,308 | 1,370 | 531,662 | 726,207 |
Balances, Shares at Mar. 31, 2021 | 4,155 | 17,304 | ||||
Net income (loss) | 37,943 | 37,943 | ||||
Common stock dividend declared, $0.30/share | (5,198) | (5,198) | ||||
Preferred stock dividends, $0.53125/share | (2,207) | (2,207) | ||||
Change in fair value of derivative instruments designated as cash flow hedges | (1,990) | (1,990) | ||||
Reclassification of realized loss on derivative instruments designated as cash flow hedges | 234 | 234 | ||||
Foreign currency translation adjustment | 113 | 113 | ||||
Income tax expense related to items of other comprehensive income | 369 | 369 | ||||
Exercise of stock options | 145 | 145 | ||||
Exercise of stock options, Shares | 21 | |||||
Stock-based compensation, net of taxes | 645 | 645 | ||||
Stock-based compensation, net of taxes, Shares | 33 | |||||
Balances at Jun. 30, 2021 | $ 103,865 | $ 2 | $ 90,098 | $ 96 | $ 562,200 | $ 756,261 |
Balances, Shares at Jun. 30, 2021 | 4,155 | 17,358 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY [Abstract] | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.30 | $ 0.30 | ||
Preferred Stock, Dividends Per Share | $ 0.53125 | $ 0.53125 | $ 0.53125 | $ 0.53125 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Cash flows from operating activities | |||
Net income (loss) | $ 73,683 | $ (1,956) | |
Income (loss) from discontinued operations, net of income taxes | 1,063 | (30,177) | |
Income from continuing operations | 72,620 | 28,221 | |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||
Depreciation | 58,241 | 54,203 | |
Amortization of debt issuance costs | 1,618 | 2,122 | |
Stock-based compensation expense | 1,133 | 667 | |
Unrealized loss on foreign exchange | 278 | 63 | |
Gain on sale of rental equipment | (13,769) | (3,435) | |
Deferred income taxes | (3,205) | 1,173 | |
Bad debt expense (recovery) | 8 | (3,505) | |
Changes in other operating assets and liabilities: | |||
Accounts receivable | (2,390) | 4,100 | |
Prepaid expenses and other assets | 1,756 | 295 | |
Net investment in finance leases | 46,861 | 35,724 | |
Accounts payable, accrued expenses and other liabilities | 2,400 | (968) | |
Unearned revenue | (175) | (432) | |
Net cash provided by operating activities of continuing operations | 165,376 | 118,228 | |
Net cash (used in) provided by operating activities of discontinued operations | (3,312) | 7,398 | |
Net cash provided by operating activities | 162,064 | 125,626 | |
Cash flows from investing activities | |||
Purchase of rental equipment | (276,639) | (32,620) | |
Purchase of financing receivable | (8,774) | (30,846) | |
Proceeds from sale of rental equipment | 51,380 | 48,286 | |
Receipt of principal payments from financing receivable | 5,297 | 2,225 | |
Purchase of furniture, fixtures and equipment | (87) | (310) | |
Net cash used in investing activities of continuing operations | (228,823) | (13,265) | |
Net cash provided by investing activities of discontinued operations | 1,252 | 10,180 | |
Net cash used in investing activities | (227,571) | (3,085) | |
Cash flows from financing activities | |||
Proceeds from debt | 260,000 | 227,000 | |
Principal payments on debt | (183,743) | (346,200) | |
Debt issuance costs | (25) | ||
Proceeds from issuance of common stock | 53 | 116 | |
Repurchase of common stock | (12,788) | ||
Dividends paid to common stockholders | (10,391) | ||
Dividends paid to preferred stockholders | (4,414) | (4,414) | |
Exercise of stock options | 1,644 | 113 | |
Net cash provided by (used in) financing activities of continuing operations | 50,361 | (123,410) | |
Net cash used in financing activities of discontinued operations | (2,131) | ||
Net cash provided by (used in) financing activities | 50,361 | (125,541) | |
Effect on cash of foreign currency translation | (127) | (189) | |
Net decrease in cash and restricted cash | (15,273) | (3,189) | |
Cash and restricted cash at beginning of the period | [1] | 66,502 | 73,239 |
Cash and restricted cash at end of the period | [2] | 51,229 | 70,050 |
Cash paid during the period for: | |||
Income taxes | 3,321 | 225 | |
Interest | 19,187 | 35,167 | |
Lease liabilities arising from obtaining right-of-use assets | 262 | ||
Supplemental disclosure of non-cash investing and financing activity | |||
Transfer of rental equipment to finance lease | 233,471 | 7,748 | |
Rental equipment payable | $ 311,870 | $ 3,356 | |
[1] | Includes cash of $ 26,691 and $ 19,870 , cash held by variable interest entities of $ 26,856 and $ 26,594 , and restricted cash of $ 12,955 and $ 26,775 at December 31, 2020 and 2019, respectively. | ||
[2] | Includes cash of $ 17,554 and $ 20,159 , cash held by variable interest entities of $ 21,256 and $ 27,703 , and restricted cash of $ 12,419 and $ 22,188 at June 30, 2021 and 2020, respectively. |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Restricted cash | $ 12,419 | $ 12,955 | $ 22,188 | $ 26,775 |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | ||||
Cash | 17,554 | 26,691 | 20,159 | 19,870 |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Cash | $ 21,256 | $ 26,856 | $ 27,703 | $ 26,594 |
Description Of Business And Sig
Description Of Business And Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
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 company. The Company purchases equipment, primarily intermodal shipping containers, 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’s common stock, 8.50 % Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Stock (Series A Preferred Stock) and 8.50 % Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Stock (Series B Preferred 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 June 30, 2021 and December 31, 2020, the Company’s results of operations for the three and six months ended June 30, 2021 and 2020, and the Company’s cash flows for the six months ended June 30, 2021 and 2020. 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 2021 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, 2020, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 1, 2021. Merger Agreement with Mitsubishi HC Capital Inc. On June 17, 2021, the Company entered into an Agreement and Plan of Merger (the Merger Agreement) with Mitsubishi HC Capital Inc., a Japanese corporation (Parent), and Cattleya Acquisition Corp., a Delaware corporation and wholly-owned subsidiary of Parent (Merger Sub), relating to the proposed acquisition of the Company by Parent. Pursuant to the terms of the Merger Agreement, Merger Sub will merge with and into the Company (the Merger), with the Company continuing as the surviving corporation in the Merger as a wholly-owned subsidiary of Parent. Upon completion of the Merger, the Company will cease to be a publicly traded company and at the effective time of the Merger (the Effective Time): (i) each share of the Company’s common stock that is issued and outstanding immediately prior to the Effective Time (other than Excluded Shares (as defined in the Merger Agreement)) will cease to be outstanding and will be converted into the right to receive $ 56.00 , in cash, without interest, subject to deductions of any applicable withholding taxes; (ii) each share of the Company’s Series A Preferred Stock that is issued and outstanding immediately prior to the Effective Time, other than Excluded Shares, will be converted into the right to receive an amount equal to the sum of: (a) the liquidation preference of $ 25.00 per share, plus (b) the aggregate amount of all accrued and unpaid dividends on such Series A Preferred Stock as of the Effective Time, in cash, without interest, subject to deductions of any applicable withholding taxes; and (iii) each share of the Company’s Series B Preferred Stock that is issued and outstanding immediately prior to the Effective Time, other than Excluded Shares, will be converted into the right to receive an amount equal to the sum of: (a) the liquidation preference of $ 25.00 per share, plus (b) the aggregate amount of all accrued and unpaid dividends on such Series B Preferred Stock as of the Effective Time, in cash, without interest, subject to deductions of any applicable withholding taxes. The closing of the Merger is subject to various closing conditions, each of which is more fully described in the Company’s Current Report on Form 8-K, filed with the SEC on June 21, 2021, the Company’s preliminary proxy statement on Schedule 14A relating to the Merger, filed with the SEC on July 12, 2021 (the Preliminary Proxy Statement), and the Company’s definitive proxy statement on Schedule 14A relating to the Merger to be filed with the SEC. The closing of the Merger is subject to, among other things, adoption of the Merger Agreement by the affirmative vote of the holders of at least a majority of the outstanding shares of common stock entitled to vote at a special meeting of the common stockholders of the Company to be held on a date to be announced, the completion of the Migration (as defined the Preliminary Proxy Statement) and receipt of regulatory approval. The Merger is expected to be completed in the late third quarter or early fourth quarter of 2021. However, the exact timing of completion of the Merger cannot be predicted because the Merger is subject to the satisfaction or (to the extent permitted by applicable law) waiver of the conditions to the completion of the Merger more fully described in the Preliminary Proxy Statement. Discontinued Operations On August 14, 2020, the Company sold substantially all of the assets and liabilities of its logistics business to NFI, a North American logistics provider, for cash proceeds of $ 6.2 million. On December 29, 2020, the Company sold its remaining railcar fleet to affiliates of Infinity Transportation for cash proceeds of $ 228.1 million. As a result, the operating results of the logistics and rail businesses have been classified as discontinued operations in the accompanying unaudited consolidated statements of income and cash flows. All prior periods presented in these consolidated financial statements have been restated to reflect the classification of the logistics and rail leasing businesses as discontinued operations. See Note 2 – Discontinued Operations for more information. 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 and second largest customer accounted for 21 % and 10 %, respectively, of the Company’s total billings during the three months ended June 30, 2021, and 20 % and 10 %, respectively, of the Company’s total billings during the six months ended June 30, 2021. Accounting Policy Updates There were no changes to the Company’s accounting policies during the six months ended June 30, 2021. 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, 2020, filed with the SEC on March 1, 2021, for a description of the Company’s significant accounting policies. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | (2) Discontinued Operations As discussed in Note 1, the Company sold substantially all of the assets of its logistics business for proceeds of $ 6.2 million and its remaining railcar assets for proceeds of $ 228.1 million during the quarters ended September 30, 2020 and December 31, 2020, respectively. The logistics and rail leasing businesses have been classified as discontinued operations in the accompanying unaudited consolidated statements of income and cash flows for the three and six months ended June 30, 2021 and 2020. The Company recognized an impairment charge of $ 19.7 million during the six months ended June 30, 2020 to reduce the book value of its railcar portfolio, on an individual basis, to its estimated fair value, or to its net book value had the assets not been classified as held for sale. 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 utilized the current replacement cost for a particular car type and calculated 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 estimated value based on recent market transactions involving similar railcars. The railcars were classified within Level 3 of the fair value hierarchy. The following tables summarize the components of net income (loss) from discontinued operations in the accompanying unaudited consolidated statements of income for the three months ended June 30, 2020 and the six months ended June 30, 2021 and 2020 (in thousands). There was no income or expense arising from discontinued operations for the three months ended June 30, 2021. Revenue and operating expenses for the six months ended June 30, 2021 were a result of immaterial differences in the actual transactions from the amounts accrued prior to the sale of the logistics and railcar businesses in 2020. Three Months Ended June 30, 2020 Rail Logistics Total Revenue Rail lease revenue $ 6,282 $ - $ 6,282 Logistics revenue - 22,648 22,648 Total revenue 6,282 22,648 28,930 Operating expenses Depreciation of rental equipment 2,096 - 2,096 Impairment of rental equipment 557 - 557 Storage, handling and other expenses 1,311 - 1,311 Logistics transportation costs - 19,533 19,533 Gain on sale of rental equipment ( 320 ) - ( 320 ) Administrative expenses 564 22,584 23,148 Total operating expenses 4,208 42,117 46,325 Operating income (loss) 2,074 ( 19,469 ) ( 17,395 ) Interest expense (income) 1,461 ( 3 ) 1,458 Income (loss) before income taxes 613 ( 19,466 ) ( 18,853 ) Income tax expense (benefit) 209 ( 2,884 ) ( 2,675 ) Net income (loss) from discontinued operations $ 404 $ ( 16,582 ) $ ( 16,178 ) Six Months Ended June 30, 2021 Rail Logistics Total Revenue Rail lease revenue $ 293 $ - $ 293 Total revenue 293 - 293 Operating expenses Storage, handling and other expenses ( 142 ) - ( 142 ) Gain on sale of rental equipment ( 33 ) - ( 33 ) Administrative expenses 91 ( 240 ) ( 149 ) Total operating expenses ( 84 ) ( 240 ) ( 324 ) Operating income 377 240 617 Income before income taxes 377 240 617 Income tax (benefit) expense ( 496 ) 50 ( 446 ) Net income from discontinued operations $ 873 $ 190 $ 1,063 Six Months Ended June 30, 2020 Rail Logistics Total Revenue Rail lease revenue $ 12,085 $ - $ 12,085 Logistics revenue - 52,754 52,754 Total revenue 12,085 52,754 64,839 Operating expenses Depreciation of rental equipment 2,096 - 2,096 Impairment of rental equipment 19,724 - 19,724 Storage, handling and other expenses 2,630 - 2,630 Logistics transportation costs - 46,348 46,348 Gain on sale of rental equipment ( 287 ) - ( 287 ) Administrative expenses 1,333 26,746 28,079 Total operating expenses 25,496 73,094 98,590 Operating loss ( 13,411 ) ( 20,340 ) ( 33,751 ) Interest expense (income) 3,566 ( 6 ) 3,560 Loss before income taxes ( 16,977 ) ( 20,334 ) ( 37,311 ) Income tax benefit ( 4,046 ) ( 3,088 ) ( 7,134 ) Net loss from discontinued operations $ ( 12,931 ) $ ( 17,246 ) $ ( 30,177 ) |
Consolidation Of Variable Inter
Consolidation Of Variable Interest Entities | 6 Months Ended |
Jun. 30, 2021 | |
Consolidation Of Variable Interest Entities [Abstract] | |
Consolidation Of Variable Interest Entities | (3) 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 and six months ended June 30, 2021 and 2020. 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 June 30, 2021 and December 31, 2020, and the results of the VIEs’ operations and cash flows for the three and six months ended June 30, 2021 and 2020, in the Company’s consolidated financial statements. The containers that were transferred to the Japanese investor funds had a net book value of $ 70.4 million as of June 30, 2021. The container equipment, together with $ 21.3 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 $ 54.4 million and term loans held by VIE of $ 28.5 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 funds during the three and six months ended June 30, 2021 and 2020. |
Rental Equipment
Rental Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Rental Equipment [Abstract] | |
Rental Equipment | (4) Rental Equipment The following table provides a summary of the Company’s rental equipment (in thousands): June 30, December 31, 2021 2020 Dry containers $ 2,038,904 $ 1,940,572 Refrigerated containers 362,523 315,641 Other specialized equipment 258,705 194,468 2,660,132 2,450,681 Accumulated depreciation ( 715,911 ) ( 669,360 ) Rental equipment, net of accumulated depreciation $ 1,944,221 $ 1,781,321 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | (5) 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Leasing revenue - operating leases $ 65,821 $ 54,750 $ 129,688 $ 109,378 Interest income on finance leases 14,259 11,260 27,504 22,850 Other revenue 4,465 2,675 7,001 4,893 Interest income on financing receivable 1,150 758 2,302 1,435 Total leasing revenue $ 85,695 $ 69,443 $ 166,495 $ 138,556 For finance leases, the net selling gain recognized at lease commencement, representing the difference between the estimated fair value of rental equipment place on lease and net book value, in the amount of $ 0.2 million for the three and six months ended June 30, 2021 is included in “gain on sale of rental equipment” in the consolidated statements of operations. Net investment in finance leases The following table represents the components of the Company’s net investment in finance leases (in thousands): June 30, December 31, 2021 2020 Gross finance lease receivables (1) $ 1,201,835 $ 909,727 Unearned income (2) ( 384,983 ) ( 280,116 ) Net investment in finance leases 816,852 629,611 Allowance for credit losses ( 51 ) ( 46 ) Net investment in finance leases, net of allowance for credit losses $ 816,801 $ 629,565 (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 $ 135.6 million and $ 98.2 million of unguaranteed residual value at June 30, 2021 and December 31, 2020, respectively, included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of June 30, 2021 and December 31, 2020. (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 June 30, 2021 and December 31, 2020. (3) One major customer represented 74 % and 75 % of the Company’s finance lease portfolio as of June 30, 2021 and December 31, 2020, respectively. 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 June 30, 2021 for the years ending June 30 are as follows (in thousands): 2022 $ 147,046 2023 147,166 2024 112,305 2025 95,476 2026 88,329 2027 and thereafter 611,513 $ 1,201,835 Financing receivable The Company has purchased containers and leased 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): June 30, December 31, 2021 2020 Gross financing receivable $ 74,383 $ 71,761 Unearned income ( 12,225 ) ( 13,320 ) 62,158 58,441 Allowance for credit losses ( 6 ) ( 3 ) Total financing receivable $ 62,152 $ 58,438 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 June 30, 2021 and December 31, 2020, 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): June 30, 2021 2021 2020 2019 2018 2017 Prior Total Net investment in finance leases Tier 1 $ 210,211 $ 139,755 $ 43,416 $ 214,193 $ 153,210 $ 5,514 $ 766,299 Tier 2 5,493 7,284 19,814 10,916 3,633 3,413 50,553 Tier 3 - - - - - - - Total net investment in finance leases $ 215,704 $ 147,039 $ 63,230 $ 225,109 $ 156,843 $ 8,927 $ 816,852 Financing receivable Tier 1 $ - $ 25,072 $ 28,205 $ - $ - $ - $ 53,277 Tier 2 8,354 - 527 - - - 8,881 Tier 3 - - - - - - - Total financing receivable $ 8,354 $ 25,072 $ 28,732 $ - $ - $ - $ 62,158 December 31, 2020 2020 2019 2018 2017 2016 Prior Total Net investment in finance leases Tier 1 $ 127,215 $ 49,986 $ 228,802 $ 160,197 $ 5,945 $ 875 $ 573,020 Tier 2 8,425 25,726 12,576 4,272 1,136 4,456 56,591 Tier 3 - - - - - - - Total net investment in finance leases $ 135,640 $ 75,712 $ 241,378 $ 164,469 $ 7,081 $ 5,331 $ 629,611 Financing receivable Tier 1 $ 27,762 $ 30,083 $ - $ - $ - $ - $ 57,845 Tier 2 - 596 - - - - 596 Tier 3 - - - - - - - Total financing receivable $ 27,762 $ 30,679 $ - $ - $ - $ - $ 58,441 |
Debt And Derivative Instruments
Debt And Derivative Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Debt And Derivative Instruments [Abstract] | |
Debt And Derivative Instruments | (6) Debt and Derivative Instruments Debt Details of the Company’s debt as of June 30, 2021 and December 31, 2020 were as follows (dollars in thousands): June 30, 2021 December 31, 2020 Outstanding Average Outstanding Average Current Long-term Interest Current Long-term Interest Maturity Revolving credit (1) $ - $ 883,000 1.6 % $ - $ 680,000 1.6 % June 2023 Revolving credit facility - Euro - 21,026 2.4 % - 23,550 2.5 % September 2023 Term loan 1,800 22,800 2.2 % 1,800 23,700 2.2 % April 2023 Term loan - - - 68,500 - 1.9 % - Term loan 6,000 77,500 4.6 % 6,000 80,500 4.6 % October 2023 Senior secured notes 6,110 37,500 4.9 % 6,110 40,555 4.9 % September 2022 Asset-backed notes 2020-1 63,130 632,223 2.3 % 63,130 663,788 2.3 % September 2045 Collateralized financing obligations 36,943 17,484 1.9 % 35,862 33,767 1.7 % February 2026 Term loans held by VIE 5,599 22,923 4.2 % 5,482 25,752 4.2 % February 2026 119,582 1,714,456 186,884 1,571,612 Debt discount and debt issuance costs ( 3,149 ) ( 7,725 ) ( 3,436 ) ( 9,329 ) Total Debt $ 116,433 $ 1,706,731 $ 183,448 $ 1,562,283 (1) $ 500 million of this outstanding debt is subject to an interest rate swap at a cost of 0.29 % as described below in Derivative Instruments . The Company maintains its revolving credit facilities to finance the acquisition of rental equipment and for general working capital purposes. As of June 30, 2021, the Company had $ 300.6 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 June 30, 2021, the borrowing availability under the Company’s revolving credit facilities was $ 276.0 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 June 30, 2021, the Company was in compliance with all of its financial and other covenants. For further information on the Company’s debt instruments, see Note 7 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 1, 2021. Derivative Instruments In July 2020, the Company entered into an interest rate swap agreement with an effective date of July 31, 2020 and scheduled maturity date of June 30, 2025 . This contract is indexed to 1-month LIBOR, has a fixed leg interest rate of 0.29 %, and a notional amount of $ 500.0 million. The Company has designated interest rate swap agreements for a total notional amount of $ 500.0 million as cash flow hedges for accounting purposes. The change in fair value of cash flow hedging instruments during the three and six months ended June 30, 2021 was recorded on the consolidated balance sheets in ‘Accumulated other comprehensive loss’ and reclassified to ‘Net interest expense’ when realized. The Company had no derivative instruments as of June 30, 2020. Over the next twelve months, the Company expects to reclassify an estimated net loss of $ 0.8 million related to the designated interest rate swap agreements from ‘Accumulated other comprehensive loss’ in the consolidated statements of comprehensive income to ‘Net interest expense’ in the consolidated statements of operations. The following table summarizes the impact of derivative instruments designated in cash flow hedging relationships on the consolidated statements of operations and the consolidated statements of comprehensive income (loss) on a pretax basis (in thousands): Three Months Ended June 30, Six Months Ended June 30, Derivative Instrument Financial Statement Caption 2021 2020 2021 2020 Interest rate swap Comprehensive income $ ( 1,990 ) $ - $ 7,519 $ - Interest rate swap Net interest expense $ 234 $ - $ 391 $ - The fair value of derivative instruments on the Company’s consolidated balance sheets as of June 30, 2021 and December 31, 2020 was as follows (in thousands): Total Fair Value Level 2 June 30, 2021 Derivative assets - interest rate swaps $ 7,830 $ 7,830 December 31, 2020 Derivative liabilities - interest rate swaps $ 80 $ 80 |
Stock-Based Compensation Plan
Stock-Based Compensation Plan | 6 Months Ended |
Jun. 30, 2021 | |
Stock-Based Compensation Plan [Abstract] | |
Stock-Based Compensation Plan | (7) Stock–Based Compensation Plan Restricted Stock Awards, Time-Based Restricted Stock Units and Performance-Based Restricted Stock Units The Company grants time-based restricted stock units to certain employees and restricted stock awards to independent directors from time to time pursuant to its 2019 Incentive Plan (2019 Plan). Time-based restricted stock units granted to employees have a vesting period of four years , subject to continued employment with the Company; 25 % vesting on each anniversary of the grant date. Restricted stock awards granted to independent directors vest in one year . The Company recognizes the compensation cost associated with restricted stock awards and time-based restricted stock units over the vesting period based on the closing price of the Company’s common stock on the date of grant. The Company grants performance-based restricted stock units to certain executives and other key employees. The performance-based restricted stock units vest 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-based restricted stock units 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 awards, time-based restricted stock units and performance-based restricted stock units under the 2019 Plan: Weighted Average Number of Grant Date Shares Fair Value Outstanding at December 31, 2020 186,471 $ 23.91 Granted 78,823 $ 37.21 Vested ( 96,163 ) $ 21.48 Forfeited ( 5,071 ) $ 21.90 Outstanding at June 30, 2021 164,060 $ 31.79 The Company recognized stock-based compensation expense relating to restricted stock and performance stock in continuing operations of $ 0.6 million for the three months ended June 30, 2021, and $ 1.1 million and $ 0.5 million for the six months ended June 30, 2021 and 2020, respectively, and a benefit of $ 0.1 million for the three months ended June 30, 2020. As of June 30, 2021 , unamortized stock-based compensation expense relating to restricted stock and performance stock was $ 4.0 million, which will be recognized over the remaining average vesting period of 2.1 years. 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. 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, subject to continued employment with the Company. 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 six months ended June 30, 2021 and 2020 : Six Months Ended June 30, 2021 2020 Weighted Weighted Average Average Number of Exercise Number of Exercise Shares Price Shares Price Options outstanding at January 1 301,176 $ 16.39 646,946 $ 16.96 Options exercised ( 133,025 ) $ 14.49 ( 17,750 ) $ 13.94 Options forfeited - $ - ( 11,814 ) $ 15.64 Options outstanding at June 30 168,151 $ 17.89 617,382 $ 17.07 Options exercisable 168,151 $ 17.89 596,297 $ 17.11 Weighted average remaining term 4.2 years 3.3 years The aggregate intrinsic value of stock options exercised during the six months ended June 30, 2021 and 2020 was $ 3.8 million and $ 0.2 million, respectively. The aggregate intrinsic value of all options outstanding as of June 30, 2021 was $ 6.4 million based on the closing price of the Company’s common stock of $ 56.00 per share on June 30, 2021 , the last trading day of the quarter. The Company recognized stock-based compensation expense relating to stock options in continuing operations of $ 0.1 million for the three months ended June 30, 2020, and less than $ 0.1 million and $ 0.2 million for the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021 , there was no remaining unamortized stock-based compensation cost relating to stock options granted to the Company’s employees and independent directors. The Company did no t grant any stock options during the six months ended June 30, 2021 and 2020 . 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 Company issued 1,922 shares under the ESPP during the three and six months ended June 30, 2021, and 7,258 shares during the three and six months ended June 30, 2020. The Company recognized stock-based compensation expense relating to the ESPP of less than $ 0.1 million for both the three and six months ended June 30, 2021 and 2020 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | (8) Income Taxes The consolidated income tax expense for the three and six months ended June 30, 2021 and 2020 , was determined based upon estimates of the Company’s consolidated annual effective income tax rate for the years ending December 31, 2021 and 2020, 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 5.7 % at June 30, 2021 , compared to an effective tax rate of 8.2 % at June 30, 2020 . The Barbados Revenue Authority examination of Container Applications Limited 2019 corporate income tax return, concluded on May 28, 2021 with no changes. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020, 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 June 30, 2021 and December 31, 2020 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 fixed-rate term loans, asset-backed notes and collateralized financing obligations was $ 83.5 million, $ 695.4 million, and $ 54.4 million as of June 30, 2021, with a fair value of approximately $ 87.2 million, $ 694.3 million, and $ 56.6 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 $ 86.5 million, $ 726.9 million and $ 69.6 million as of December 31, 2020, with a fair value of approximately $ 91.1 million, $ 725.8 million and $ 71.6 million, respectively. Management believes that the balances of the Company’s senior secured notes of $ 43.6 million and $ 46.7 million, term loans held by VIE of $ 28.5 million and $ 31.2 million, and financing receivable of $ 62.2 million and $ 58.4 million as of June 30, 2021 and December 31, 2020, respectively, 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 $ 343.3 million of containers as of June 30, 2021, all in the twelve months ending June 30, 2022 . |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended |
Jun. 30, 2021 | |
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. In February 2021, the Board of Directors increased the share repurchase plan by an additional 2.0 million shares. 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. During the six months ended June 30, 2021, the Company repurchased 0.4 million shares of its common stock under this repurchase plan, at a cost of approximately $ 12.8 million. As of June 30, 2021 , approximately 2.4 million shares remained available for repurchase under this share repurchase program. For further information on the Company’s shareholders’ equity, see Note 13 to the consolidated financial statements in the Company’ Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 1, 2021. |
Related Parties
Related Parties | 6 Months Ended |
Jun. 30, 2021 | |
Related Parties [Abstract] | |
Related Parties | (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 December 31, 2020, 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 June 30, 2021 and December 31, 2020 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 | 6 Months Ended |
Jun. 30, 2021 | |
Segment And Geographic Information [Abstract] | |
Segment And Geographic Information | (13) Segment and Geographic Information The Company operates under one reportable segment, container leasing, which 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. As disclosed in Note 2, the Company sold substantially all of the assets of its logistics business and all its railcar assets during the year ended December 31, 2020, and the operations of the logistics and rail businesses have been reclassified as discontinued operations in the accompanying unaudited consolidated statements of operations. As a result, the Company will no longer report Logistics or Rail Leasing as segments. 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Switzerland $ 19,620 $ 12,472 $ 35,934 $ 24,988 Korea 11,095 9,899 22,405 19,138 Singapore 10,763 10,098 21,369 19,948 France 9,353 7,730 17,747 15,360 United States 1,200 1,157 2,377 2,393 Other Europe 17,730 13,593 36,080 28,833 Other Asia 15,121 13,676 28,939 26,263 Other International 813 818 1,644 1,633 Total leasing revenue $ 85,695 $ 69,443 $ 166,495 $ 138,556 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (14) Earnings Per Share Basic net income (loss) 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 and six months ended June 30, 2021 and 2020 (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator Net income from continuing operations $ 35,736 $ 13,345 $ 68,206 $ 23,807 Net (loss) income from discontinued operations - ( 16,178 ) 1,063 ( 30,177 ) Net income (loss) attributable to CAI common stockholders $ 35,736 $ ( 2,833 ) $ 69,269 $ ( 6,370 ) Denominator Weighted-average shares used in per share computation - basic 17,281 17,470 17,276 17,451 Effect of dilutive securities: Stock options and restricted stock 198 131 228 190 Weighted-average shares used in per share computation - diluted 17,479 17,601 17,504 17,641 Net income (loss) per share attributable to CAI common stockholders: Basic Continuing operations $ 2.07 $ 0.76 $ 3.95 $ 1.36 Discontinued operations - ( 0.92 ) 0.06 ( 1.73 ) Total basic $ 2.07 $ ( 0.16 ) $ 4.01 $ ( 0.37 ) Diluted Continuing operations $ 2.04 $ 0.76 $ 3.90 $ 1.35 Discontinued operations - ( 0.92 ) 0.06 ( 1.71 ) Total diluted $ 2.04 $ ( 0.16 ) $ 3.96 $ ( 0.36 ) Certain options, restricted stock awards and time- and performance-based restricted stock units issued under employee benefit plans are excluded from the computation of diluted earnings per share because they were anti-dilutive. For the three and six months ended June 30, 2021 , no stock options, restricted stock awards and time- and performance-based restricted stock units were excluded. For the three and six months ended June 30, 2020, 654,384 shares and 379,662 shares of stock options, restricted stock awards and time- and performance-based restricted stock units were excluded. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | (13) Subsequent Events Since the announcement of the Merger, two lawsuits have been filed by alleged Company stockholders. The first lawsuit was filed on July 14, 2021 in the United States District Court for the Southern District of New York and is captioned Stein v. CAI International, Inc., et al. , No. 1:21-cv-06034. The second lawsuit was filed on July 16, 2021 in the United States District Court for the District of New Jersey and is captioned Whitfield v. CAI International, Inc., et al. , No. 2:21-cv-13753-BRM-MAH. Both lawsuits name the Company and members of the Company’s board of directors as defendants. Both lawsuits allege, among other things, that the defendants violated provisions of the Securities and Exchange Act of 1934, as amended, because the Preliminary Proxy Statement allegedly omits material information with respect to the transactions contemplated therein and is therefore false and misleading. The lawsuits seek, among other things, injunctive relief, rescissory damages, and awards of plaintiffs’ fees and expenses. The Company believes that the allegations against it in each of the foregoing lawsuits lack merit, however, there can be no assurance that any of the defendants will prevail in either of the lawsuits. The Company is not able to estimate any possible loss from this litigation at this time. |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2021 | |
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 company. The Company purchases equipment, primarily intermodal shipping containers, 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’s common stock, 8.50 % Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Stock (Series A Preferred Stock) and 8.50 % Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Stock (Series B Preferred 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 June 30, 2021 and December 31, 2020, the Company’s results of operations for the three and six months ended June 30, 2021 and 2020, and the Company’s cash flows for the six months ended June 30, 2021 and 2020. 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 2021 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, 2020, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 1, 2021. |
Merger Agreement With Mitsubishi HC Capital Inc. | Merger Agreement with Mitsubishi HC Capital Inc. On June 17, 2021, the Company entered into an Agreement and Plan of Merger (the Merger Agreement) with Mitsubishi HC Capital Inc., a Japanese corporation (Parent), and Cattleya Acquisition Corp., a Delaware corporation and wholly-owned subsidiary of Parent (Merger Sub), relating to the proposed acquisition of the Company by Parent. Pursuant to the terms of the Merger Agreement, Merger Sub will merge with and into the Company (the Merger), with the Company continuing as the surviving corporation in the Merger as a wholly-owned subsidiary of Parent. Upon completion of the Merger, the Company will cease to be a publicly traded company and at the effective time of the Merger (the Effective Time): (i) each share of the Company’s common stock that is issued and outstanding immediately prior to the Effective Time (other than Excluded Shares (as defined in the Merger Agreement)) will cease to be outstanding and will be converted into the right to receive $ 56.00 , in cash, without interest, subject to deductions of any applicable withholding taxes; (ii) each share of the Company’s Series A Preferred Stock that is issued and outstanding immediately prior to the Effective Time, other than Excluded Shares, will be converted into the right to receive an amount equal to the sum of: (a) the liquidation preference of $ 25.00 per share, plus (b) the aggregate amount of all accrued and unpaid dividends on such Series A Preferred Stock as of the Effective Time, in cash, without interest, subject to deductions of any applicable withholding taxes; and (iii) each share of the Company’s Series B Preferred Stock that is issued and outstanding immediately prior to the Effective Time, other than Excluded Shares, will be converted into the right to receive an amount equal to the sum of: (a) the liquidation preference of $ 25.00 per share, plus (b) the aggregate amount of all accrued and unpaid dividends on such Series B Preferred Stock as of the Effective Time, in cash, without interest, subject to deductions of any applicable withholding taxes. The closing of the Merger is subject to various closing conditions, each of which is more fully described in the Company’s Current Report on Form 8-K, filed with the SEC on June 21, 2021, the Company’s preliminary proxy statement on Schedule 14A relating to the Merger, filed with the SEC on July 12, 2021 (the Preliminary Proxy Statement), and the Company’s definitive proxy statement on Schedule 14A relating to the Merger to be filed with the SEC. The closing of the Merger is subject to, among other things, adoption of the Merger Agreement by the affirmative vote of the holders of at least a majority of the outstanding shares of common stock entitled to vote at a special meeting of the common stockholders of the Company to be held on a date to be announced, the completion of the Migration (as defined the Preliminary Proxy Statement) and receipt of regulatory approval. The Merger is expected to be completed in the late third quarter or early fourth quarter of 2021. However, the exact timing of completion of the Merger cannot be predicted because the Merger is subject to the satisfaction or (to the extent permitted by applicable law) waiver of the conditions to the completion of the Merger more fully described in the Preliminary Proxy Statement. |
Discontinued Operations | Discontinued Operations On August 14, 2020, the Company sold substantially all of the assets and liabilities of its logistics business to NFI, a North American logistics provider, for cash proceeds of $ 6.2 million. On December 29, 2020, the Company sold its remaining railcar fleet to affiliates of Infinity Transportation for cash proceeds of $ 228.1 million. As a result, the operating results of the logistics and rail businesses have been classified as discontinued operations in the accompanying unaudited consolidated statements of income and cash flows. All prior periods presented in these consolidated financial statements have been restated to reflect the classification of the logistics and rail leasing businesses as discontinued operations. See Note 2 – Discontinued Operations for more information. |
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 and second largest customer accounted for 21 % and 10 %, respectively, of the Company’s total billings during the three months ended June 30, 2021, and 20 % and 10 %, respectively, of the Company’s total billings during the six months ended June 30, 2021. |
Accounting Policy Updates | Accounting Policy Updates There were no changes to the Company’s accounting policies during the six months ended June 30, 2021. 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, 2020, filed with the SEC on March 1, 2021, for a description of the Company’s significant accounting policies. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations [Abstract] | |
Summary Of Components Of Loss From Discontinued Operations | Three Months Ended June 30, 2020 Rail Logistics Total Revenue Rail lease revenue $ 6,282 $ - $ 6,282 Logistics revenue - 22,648 22,648 Total revenue 6,282 22,648 28,930 Operating expenses Depreciation of rental equipment 2,096 - 2,096 Impairment of rental equipment 557 - 557 Storage, handling and other expenses 1,311 - 1,311 Logistics transportation costs - 19,533 19,533 Gain on sale of rental equipment ( 320 ) - ( 320 ) Administrative expenses 564 22,584 23,148 Total operating expenses 4,208 42,117 46,325 Operating income (loss) 2,074 ( 19,469 ) ( 17,395 ) Interest expense (income) 1,461 ( 3 ) 1,458 Income (loss) before income taxes 613 ( 19,466 ) ( 18,853 ) Income tax expense (benefit) 209 ( 2,884 ) ( 2,675 ) Net income (loss) from discontinued operations $ 404 $ ( 16,582 ) $ ( 16,178 ) Six Months Ended June 30, 2021 Rail Logistics Total Revenue Rail lease revenue $ 293 $ - $ 293 Total revenue 293 - 293 Operating expenses Storage, handling and other expenses ( 142 ) - ( 142 ) Gain on sale of rental equipment ( 33 ) - ( 33 ) Administrative expenses 91 ( 240 ) ( 149 ) Total operating expenses ( 84 ) ( 240 ) ( 324 ) Operating income 377 240 617 Income before income taxes 377 240 617 Income tax (benefit) expense ( 496 ) 50 ( 446 ) Net income from discontinued operations $ 873 $ 190 $ 1,063 Six Months Ended June 30, 2020 Rail Logistics Total Revenue Rail lease revenue $ 12,085 $ - $ 12,085 Logistics revenue - 52,754 52,754 Total revenue 12,085 52,754 64,839 Operating expenses Depreciation of rental equipment 2,096 - 2,096 Impairment of rental equipment 19,724 - 19,724 Storage, handling and other expenses 2,630 - 2,630 Logistics transportation costs - 46,348 46,348 Gain on sale of rental equipment ( 287 ) - ( 287 ) Administrative expenses 1,333 26,746 28,079 Total operating expenses 25,496 73,094 98,590 Operating loss ( 13,411 ) ( 20,340 ) ( 33,751 ) Interest expense (income) 3,566 ( 6 ) 3,560 Loss before income taxes ( 16,977 ) ( 20,334 ) ( 37,311 ) Income tax benefit ( 4,046 ) ( 3,088 ) ( 7,134 ) Net loss from discontinued operations $ ( 12,931 ) $ ( 17,246 ) $ ( 30,177 ) |
Rental Equipment (Tables)
Rental Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Rental Equipment [Abstract] | |
Schedule Of Rental Equipment | June 30, December 31, 2021 2020 Dry containers $ 2,038,904 $ 1,940,572 Refrigerated containers 362,523 315,641 Other specialized equipment 258,705 194,468 2,660,132 2,450,681 Accumulated depreciation ( 715,911 ) ( 669,360 ) Rental equipment, net of accumulated depreciation $ 1,944,221 $ 1,781,321 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Components Of Lease Revenue | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Leasing revenue - operating leases $ 65,821 $ 54,750 $ 129,688 $ 109,378 Interest income on finance leases 14,259 11,260 27,504 22,850 Other revenue 4,465 2,675 7,001 4,893 Interest income on financing receivable 1,150 758 2,302 1,435 Total leasing revenue $ 85,695 $ 69,443 $ 166,495 $ 138,556 |
Components Of Net Investment In Direct Finance Leases | June 30, December 31, 2021 2020 Gross finance lease receivables (1) $ 1,201,835 $ 909,727 Unearned income (2) ( 384,983 ) ( 280,116 ) Net investment in finance leases 816,852 629,611 Allowance for credit losses ( 51 ) ( 46 ) Net investment in finance leases, net of allowance for credit losses $ 816,801 $ 629,565 (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 $ 135.6 million and $ 98.2 million of unguaranteed residual value at June 30, 2021 and December 31, 2020, respectively, included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of June 30, 2021 and December 31, 2020. (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 June 30, 2021 and December 31, 2020. (3) One major customer represented 74 % and 75 % of the Company’s finance lease portfolio as of June 30, 2021 and December 31, 2020, respectively. 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 | 2022 $ 147,046 2023 147,166 2024 112,305 2025 95,476 2026 88,329 2027 and thereafter 611,513 $ 1,201,835 |
Summary Of Components Of Financing Receivable | June 30, December 31, 2021 2020 Gross financing receivable $ 74,383 $ 71,761 Unearned income ( 12,225 ) ( 13,320 ) 62,158 58,441 Allowance for credit losses ( 6 ) ( 3 ) Total financing receivable $ 62,152 $ 58,438 |
Finance Lease Receivables By Risk Categories | June 30, 2021 2021 2020 2019 2018 2017 Prior Total Net investment in finance leases Tier 1 $ 210,211 $ 139,755 $ 43,416 $ 214,193 $ 153,210 $ 5,514 $ 766,299 Tier 2 5,493 7,284 19,814 10,916 3,633 3,413 50,553 Tier 3 - - - - - - - Total net investment in finance leases $ 215,704 $ 147,039 $ 63,230 $ 225,109 $ 156,843 $ 8,927 $ 816,852 Financing receivable Tier 1 $ - $ 25,072 $ 28,205 $ - $ - $ - $ 53,277 Tier 2 8,354 - 527 - - - 8,881 Tier 3 - - - - - - - Total financing receivable $ 8,354 $ 25,072 $ 28,732 $ - $ - $ - $ 62,158 December 31, 2020 2020 2019 2018 2017 2016 Prior Total Net investment in finance leases Tier 1 $ 127,215 $ 49,986 $ 228,802 $ 160,197 $ 5,945 $ 875 $ 573,020 Tier 2 8,425 25,726 12,576 4,272 1,136 4,456 56,591 Tier 3 - - - - - - - Total net investment in finance leases $ 135,640 $ 75,712 $ 241,378 $ 164,469 $ 7,081 $ 5,331 $ 629,611 Financing receivable Tier 1 $ 27,762 $ 30,083 $ - $ - $ - $ - $ 57,845 Tier 2 - 596 - - - - 596 Tier 3 - - - - - - - Total financing receivable $ 27,762 $ 30,679 $ - $ - $ - $ - $ 58,441 |
Debt And Derivative Instrumen_2
Debt And Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt And Derivative Instruments [Abstract] | |
Schedule Of Debt | June 30, 2021 December 31, 2020 Outstanding Average Outstanding Average Current Long-term Interest Current Long-term Interest Maturity Revolving credit (1) $ - $ 883,000 1.6 % $ - $ 680,000 1.6 % June 2023 Revolving credit facility - Euro - 21,026 2.4 % - 23,550 2.5 % September 2023 Term loan 1,800 22,800 2.2 % 1,800 23,700 2.2 % April 2023 Term loan - - - 68,500 - 1.9 % - Term loan 6,000 77,500 4.6 % 6,000 80,500 4.6 % October 2023 Senior secured notes 6,110 37,500 4.9 % 6,110 40,555 4.9 % September 2022 Asset-backed notes 2020-1 63,130 632,223 2.3 % 63,130 663,788 2.3 % September 2045 Collateralized financing obligations 36,943 17,484 1.9 % 35,862 33,767 1.7 % February 2026 Term loans held by VIE 5,599 22,923 4.2 % 5,482 25,752 4.2 % February 2026 119,582 1,714,456 186,884 1,571,612 Debt discount and debt issuance costs ( 3,149 ) ( 7,725 ) ( 3,436 ) ( 9,329 ) Total Debt $ 116,433 $ 1,706,731 $ 183,448 $ 1,562,283 (1) $ 500 million of this outstanding debt is subject to an interest rate swap at a cost of 0.29 % as described below in Derivative Instruments . |
Summary Impact Of Derivative Instruments | Three Months Ended June 30, Six Months Ended June 30, Derivative Instrument Financial Statement Caption 2021 2020 2021 2020 Interest rate swap Comprehensive income $ ( 1,990 ) $ - $ 7,519 $ - Interest rate swap Net interest expense $ 234 $ - $ 391 $ - |
Derivative Instruments Measured At Fair Value On Recurring | Total Fair Value Level 2 June 30, 2021 Derivative assets - interest rate swaps $ 7,830 $ 7,830 December 31, 2020 Derivative liabilities - interest rate swaps $ 80 $ 80 |
Stock-Based Compensation Plan (
Stock-Based Compensation Plan (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stock-Based Compensation Plan [Abstract] | |
Summary Of Restricted Stock And Performance Stock Activity | Weighted Average Number of Grant Date Shares Fair Value Outstanding at December 31, 2020 186,471 $ 23.91 Granted 78,823 $ 37.21 Vested ( 96,163 ) $ 21.48 Forfeited ( 5,071 ) $ 21.90 Outstanding at June 30, 2021 164,060 $ 31.79 |
Summary Of Stock Option Activities | Six Months Ended June 30, 2021 2020 Weighted Weighted Average Average Number of Exercise Number of Exercise Shares Price Shares Price Options outstanding at January 1 301,176 $ 16.39 646,946 $ 16.96 Options exercised ( 133,025 ) $ 14.49 ( 17,750 ) $ 13.94 Options forfeited - $ - ( 11,814 ) $ 15.64 Options outstanding at June 30 168,151 $ 17.89 617,382 $ 17.07 Options exercisable 168,151 $ 17.89 596,297 $ 17.11 Weighted average remaining term 4.2 years 3.3 years |
Segment And Geographic Inform_2
Segment And Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment And Geographic Information [Abstract] | |
Schedule Of Geographic Allocation Of Revenue | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Switzerland $ 19,620 $ 12,472 $ 35,934 $ 24,988 Korea 11,095 9,899 22,405 19,138 Singapore 10,763 10,098 21,369 19,948 France 9,353 7,730 17,747 15,360 United States 1,200 1,157 2,377 2,393 Other Europe 17,730 13,593 36,080 28,833 Other Asia 15,121 13,676 28,939 26,263 Other International 813 818 1,644 1,633 Total leasing revenue $ 85,695 $ 69,443 $ 166,495 $ 138,556 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation Of Basic And Diluted Net Income Per Share | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator Net income from continuing operations $ 35,736 $ 13,345 $ 68,206 $ 23,807 Net (loss) income from discontinued operations - ( 16,178 ) 1,063 ( 30,177 ) Net income (loss) attributable to CAI common stockholders $ 35,736 $ ( 2,833 ) $ 69,269 $ ( 6,370 ) Denominator Weighted-average shares used in per share computation - basic 17,281 17,470 17,276 17,451 Effect of dilutive securities: Stock options and restricted stock 198 131 228 190 Weighted-average shares used in per share computation - diluted 17,479 17,601 17,504 17,641 Net income (loss) per share attributable to CAI common stockholders: Basic Continuing operations $ 2.07 $ 0.76 $ 3.95 $ 1.36 Discontinued operations - ( 0.92 ) 0.06 ( 1.73 ) Total basic $ 2.07 $ ( 0.16 ) $ 4.01 $ ( 0.37 ) Diluted Continuing operations $ 2.04 $ 0.76 $ 3.90 $ 1.35 Discontinued operations - ( 0.92 ) 0.06 ( 1.71 ) Total diluted $ 2.04 $ ( 0.16 ) $ 3.96 $ ( 0.36 ) |
Description Of Business And S_3
Description Of Business And Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 29, 2020 | Aug. 14, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2021 |
Logistics [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash proceeds from sale of business | $ 6.2 | $ 6.2 | ||||||
Rail Lease [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Cash proceeds from sale of business | $ 228.1 | $ 228.1 | ||||||
Total Billings [Member] | Customer Concentration Risk [Member] | Largest Customer [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Concentration percentage | 21.00% | 20.00% | ||||||
Total Billings [Member] | Customer Concentration Risk [Member] | Second Largest [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Concentration percentage | 10.00% | 10.00% | ||||||
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% | ||||||
Forecast [Member] | Common Stock [Member] | Mitsubishi HC Capital Inc. [Member] | CAI International Inc. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Sale of stock, price per share | $ 56 | |||||||
Forecast [Member] | Preferred Stock [Member] | Mitsubishi HC Capital Inc. [Member] | CAI International Inc. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Sale of stock, price per share | $ 25 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Millions | Dec. 29, 2020 | Aug. 14, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Impairment charge | $ 19.7 | |||||
Logistics [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash proceeds from sale of business | $ 6.2 | $ 6.2 | ||||
Rail Lease [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash proceeds from sale of business | $ 228.1 | $ 228.1 | ||||
Rail Lease [Member] | Discontinued Operations, Held-for-sale [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Estimated useful life | 40 years | |||||
Residual value percentage | 10.00% |
Discontinued Operations (Summar
Discontinued Operations (Summary Of Components Of Loss From Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment of rental equipment | $ 19,700 | ||
Net income (loss) from discontinued operations | $ (16,178) | $ 1,063 | (30,177) |
Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue | 28,930 | 293 | 64,839 |
Depreciation of rental equipment | 2,096 | 2,096 | |
Impairment of rental equipment | 557 | 19,724 | |
Storage, handling and other expenses | 1,311 | (142) | 2,630 |
Gain on sale of rental equipment | (320) | (33) | (287) |
Logistics transportation costs | 19,533 | 46,348 | |
Administrative expenses | 23,148 | (149) | 28,079 |
Total operating expenses | 46,325 | (324) | 98,590 |
Operating income (loss) | (17,395) | 617 | (33,751) |
Interest expense (income) | 1,458 | 3,560 | |
Income (loss) before income taxes | (18,853) | 617 | (37,311) |
Income tax expense (benefit) | (2,675) | (446) | (7,134) |
Net income (loss) from discontinued operations | (16,178) | 1,063 | (30,177) |
Rail Lease [Member] | Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue | 6,282 | 293 | 12,085 |
Depreciation of rental equipment | 2,096 | 2,096 | |
Impairment of rental equipment | 557 | 19,724 | |
Storage, handling and other expenses | 1,311 | (142) | 2,630 |
Gain on sale of rental equipment | (320) | (33) | (287) |
Administrative expenses | 564 | 91 | 1,333 |
Total operating expenses | 4,208 | (84) | 25,496 |
Operating income (loss) | 2,074 | 377 | (13,411) |
Interest expense (income) | 1,461 | 3,566 | |
Income (loss) before income taxes | 613 | 377 | (16,977) |
Income tax expense (benefit) | 209 | (496) | (4,046) |
Net income (loss) from discontinued operations | 404 | 873 | (12,931) |
Logistics [Member] | Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue | 22,648 | 52,754 | |
Logistics transportation costs | 19,533 | 46,348 | |
Administrative expenses | 22,584 | (240) | 26,746 |
Total operating expenses | 42,117 | (240) | 73,094 |
Operating income (loss) | (19,469) | 240 | (20,340) |
Interest expense (income) | (3) | (6) | |
Income (loss) before income taxes | (19,466) | 240 | (20,334) |
Income tax expense (benefit) | (2,884) | 50 | (3,088) |
Net income (loss) from discontinued operations | $ (16,582) | $ 190 | $ (17,246) |
Consolidation Of Variable Int_2
Consolidation Of Variable Interest Entities (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($)item | Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($)item | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Variable Interest Entity [Line Items] | ||||||
Net book value | $ 1,944,221,000 | $ 1,944,221,000 | $ 1,781,321,000 | |||
Collateralized Financing Obligations [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Long-term debt | 54,400,000 | 54,400,000 | ||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Net book value | 68,579,000 | 68,579,000 | 77,907,000 | |||
Cash | 21,256,000 | $ 27,703,000 | 21,256,000 | $ 27,703,000 | $ 26,856,000 | $ 26,594,000 |
Variable Interest Entity, Primary Beneficiary [Member] | Term Loan [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Long-term debt | $ 28,500,000 | $ 28,500,000 | ||||
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 | 0 | 0 | ||
Net book value | $ 70,400,000 | $ 70,400,000 | ||||
Cash | $ 21,300,000 | 21,300,000 | ||||
Gain (loss) recognized on initial consolidation of VIEs | $ 0 | |||||
Number of containers sold | item | 0 | 0 | 0 | 0 |
Rental Equipment (Details)
Rental Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Rental equipment, gross | $ 2,660,132 | $ 2,450,681 |
Accumulated depreciation | (715,911) | (669,360) |
Rental equipment, net of accumulated depreciation | 1,944,221 | 1,781,321 |
Dry Containers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental equipment, gross | 2,038,904 | 1,940,572 |
Refrigerated Containers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental equipment, gross | 362,523 | 315,641 |
Other Specialized Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental equipment, gross | $ 258,705 | $ 194,468 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lessee, Lease, Description [Line Items] | ||||
Net selling gain recognized | $ 7,026 | $ 1,788 | $ 13,769 | $ 3,435 |
Finance Leases [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Net selling gain recognized | $ 200 |
Leases (Components Of Lease Rev
Leases (Components Of Lease Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Leasing revenue - operating leases | $ 65,821 | $ 54,750 | $ 129,688 | $ 109,378 |
Interest income on financing leases | 14,259 | 11,260 | 27,504 | 22,850 |
Other revenue | 4,465 | 2,675 | 7,001 | 4,893 |
Interest income on financing receivable | 1,150 | 758 | 2,302 | 1,435 |
Total leasing revenue | $ 85,695 | $ 69,443 | $ 166,495 | $ 138,556 |
Leases (Components Of Net Inves
Leases (Components Of Net Investment In Direct Finance Leases) (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021USD ($)customer | Dec. 31, 2020USD ($)customer | ||
Concentration Risk [Line Items] | |||
Gross finance lease receivables | [1] | $ 1,201,835,000 | $ 909,727,000 |
Unearned income | [2] | (384,983,000) | (280,116,000) |
Net investment in finance leases | 816,852,000 | 629,611,000 | |
Allowance for credit losses | (51,000) | (46,000) | |
Net investment in finance leases, net of allowance for credit losses | 816,801,000 | 629,565,000 | |
Unguaranteed residual value | 135,600,000 | 98,200,000 | |
Executory costs | 0 | 0 | |
Unamortized initial direct costs | $ 0 | $ 0 | |
Finance Lease [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Number of major customers | customer | 1 | 1 | |
One Major Customer [Member] | Finance Lease [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 74.00% | 75.00% | |
[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 $ 135.6 million and $ 98.2 million of unguaranteed residual value at June 30, 2021 and December 31, 2020, respectively, included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of June 30, 2021 and December 31, 2020. | ||
[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 June 30, 2021 and December 31, 2020. |
Leases (Contractual Maturities
Leases (Contractual Maturities Of Gross Finance Lease Receivables) (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 147,046 |
2023 | 147,166 |
2024 | 112,305 |
2025 | 95,476 |
2026 | 88,329 |
2027 and thereafter | 611,513 |
Gross finance lease receivables | $ 1,201,835 |
Leases (Summary Of Components O
Leases (Summary Of Components Of Financing Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Gross financing receivable | $ 74,383 | $ 71,761 |
Unearned Income | (12,225) | (13,320) |
Financing receivable | 62,158 | 58,441 |
Allowance for credit losses | (6) | (3) |
Total financing receivable | $ 62,152 | $ 58,438 |
Leases (Finance Lease Receivabl
Leases (Finance Lease Receivables By Risk Categories) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment [Line Items] | ||
Net investment in finance leases, current year | $ 215,704 | $ 135,640 |
Net investment in finance leases, one year before | 147,039 | 75,712 |
Net investment in finance leases, two years before | 63,230 | 241,378 |
Net investment in finance leases, three years before | 225,109 | 164,469 |
Net investment in finance leases, four years before | 156,843 | 7,081 |
Net investment in finance leases, Prior | 8,927 | 5,331 |
Total net investment in finance leases | 816,852 | 629,611 |
Financing receivable, current year | 8,354 | 27,762 |
Financing receivable, one year before | 25,072 | 30,679 |
Financing receivable, two years before | 28,732 | |
Total financing receivable | 62,158 | 58,441 |
Tier 1 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Net investment in finance leases, current year | 210,211 | 127,215 |
Net investment in finance leases, one year before | 139,755 | 49,986 |
Net investment in finance leases, two years before | 43,416 | 228,802 |
Net investment in finance leases, three years before | 214,193 | 160,197 |
Net investment in finance leases, four years before | 153,210 | 5,945 |
Net investment in finance leases, Prior | 5,514 | 875 |
Total net investment in finance leases | 766,299 | 573,020 |
Financing receivable, current year | 27,762 | |
Financing receivable, one year before | 25,072 | 30,083 |
Financing receivable, two years before | 28,205 | |
Total financing receivable | 53,277 | 57,845 |
Tier 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Net investment in finance leases, current year | 5,493 | 8,425 |
Net investment in finance leases, one year before | 7,284 | 25,726 |
Net investment in finance leases, two years before | 19,814 | 12,576 |
Net investment in finance leases, three years before | 10,916 | 4,272 |
Net investment in finance leases, four years before | 3,633 | 1,136 |
Net investment in finance leases, Prior | 3,413 | 4,456 |
Total net investment in finance leases | 50,553 | 56,591 |
Financing receivable, current year | 8,354 | |
Financing receivable, one year before | 596 | |
Financing receivable, two years before | 527 | |
Total financing receivable | $ 8,881 | $ 596 |
Debt And Derivative Instrumen_3
Debt And Derivative Instruments (Narrative) (Details) $ in Millions | 1 Months Ended | ||
Jul. 31, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020item | |
Debt Instrument [Line Items] | |||
Derivative, Number of instruments held | item | 0 | ||
Amount expected to be reclassified in the next twelve months | $ 0.8 | ||
Interest Rate Swap [Member] | |||
Debt Instrument [Line Items] | |||
Derivative, Maturity Date | Jun. 30, 2025 | ||
Derivative amount | $ 500 | $ 500 | |
Derivative, Fixed Interest Rate | 0.29% | 0.29% | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Maximum credit commitment | $ 300.6 | ||
Available borrowing capacity | 276 | ||
Revolving Credit Facility [Member] | Consortium of Banks [Member] | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding | $ 0.1 |
Debt And Derivative Instrumen_4
Debt And Derivative Instruments (Schedule Of Debt) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2020 | Jul. 31, 2020 | ||
Debt Instrument [Line Items] | ||||
Gross Debt, Current Outstanding | $ 119,582 | $ 186,884 | ||
Gross Debt, Long-term Outstanding | 1,714,456 | 1,571,612 | ||
Debt discount and debt issuance costs, Current Outstanding | (3,149) | (3,436) | ||
Debt discount and debt issuance costs, Long-term Outstanding | (7,725) | (9,329) | ||
Total Debt, Current Outstanding | 116,433 | 183,448 | ||
Total Debt, Long-term Outstanding | 1,706,731 | 1,562,283 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Debt Instrument [Line Items] | ||||
Total Debt, Current Outstanding | 42,542 | 41,344 | ||
Total Debt, Long-term Outstanding | 40,407 | 59,519 | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Gross Debt, Long-term Outstanding | [1] | $ 883,000 | $ 680,000 | |
Average Interest | [1] | 1.60% | 1.60% | |
Maturity | [1] | June 2023 | ||
Term Loan [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Debt Instrument [Line Items] | ||||
Gross Debt, Current Outstanding | $ 5,599 | $ 5,482 | ||
Gross Debt, Long-term Outstanding | $ 22,923 | $ 25,752 | ||
Average Interest | 4.20% | 4.20% | ||
Maturity | February 2026 | |||
Senior Secured Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Gross Debt, Current Outstanding | $ 6,110 | $ 6,110 | ||
Gross Debt, Long-term Outstanding | $ 37,500 | $ 40,555 | ||
Average Interest | 4.90% | 4.90% | ||
Maturity | September 2022 | |||
Collateralized Financing Obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Gross Debt, Current Outstanding | $ 36,943 | $ 35,862 | ||
Gross Debt, Long-term Outstanding | $ 17,484 | $ 33,767 | ||
Average Interest | 1.90% | 1.70% | ||
Maturity | February 2026 | |||
CAI Euro [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Gross Debt, Long-term Outstanding | $ 21,026 | $ 23,550 | ||
Average Interest | 2.40% | 2.50% | ||
Maturity | September 2023 | |||
Term Loan Due April 2023 [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Gross Debt, Current Outstanding | $ 1,800 | $ 1,800 | ||
Gross Debt, Long-term Outstanding | $ 22,800 | $ 23,700 | ||
Average Interest | 2.20% | 2.20% | ||
Maturity | April 2023 | |||
Term Loan Due June 2021 [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Gross Debt, Current Outstanding | $ 68,500 | |||
Average Interest | 1.90% | |||
Maturity | - | |||
Term Loan Due October 2023 [Member] | Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Gross Debt, Current Outstanding | $ 6,000 | $ 6,000 | ||
Gross Debt, Long-term Outstanding | $ 77,500 | $ 80,500 | ||
Average Interest | 4.60% | 4.60% | ||
Maturity | October 2023 | |||
Series 2020-1 Asset-Backed Notes [Member] | Asset Backed Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Gross Debt, Current Outstanding | $ 63,130 | $ 63,130 | ||
Gross Debt, Long-term Outstanding | $ 632,223 | $ 663,788 | ||
Average Interest | 2.30% | 2.30% | ||
Maturity | September 2045 | |||
Interest Rate Swap [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative amount | $ 500,000 | $ 500,000 | ||
Derivative, Fixed Interest Rate | 0.29% | 0.29% | ||
[1] | $ 500 million of this outstanding debt is subject to an interest rate swap at a cost of 0.29 % as described below in Derivative Instruments . |
Debt And Derivative Instrumen_5
Debt And Derivative Instruments (Summary Impact Of Derivative Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Comprehensive Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest rate swap | $ (1,990) | $ 7,519 |
Net Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest rate swap | $ 234 | $ 391 |
Debt And Derivative Instrumen_6
Debt And Derivative Instruments (Derivative Instruments Measured At Fair Value On Recurring) (Details) - Interest Rate Swap [Member] - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 7,830 | |
Derivative liabilities | $ 80 | |
Level 2 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 7,830 | |
Derivative liabilities | $ 80 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plan (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period of awards | 4 years | ||||
Contractual term | 10 years | ||||
Aggregate intrinsic value of options exercised | $ 3,800,000 | $ 200,000 | |||
Closing price per share | $ 56 | $ 56 | |||
Stock-based compensation expense recorded | $ 100,000 | $ 200,000 | |||
Remaining unamortized stock-based compensation cost | $ 0 | $ 0 | |||
Options granted, Number of Shares | 0 | 0 | |||
Aggregate intrinsic value of options outstanding | 6,400,000 | $ 6,400,000 | |||
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 | ||||
Stock Options [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense recorded | $ 100,000 | ||||
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 | 600,000 | $ (100,000) | $ 1,100,000 | $ 500,000 | |
Remaining unamortized stock-based compensation cost | $ 4,000,000 | $ 4,000,000 | |||
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 | ||||
Options granted, Number of Shares | 1,922 | 7,258 | 1,922 | 7,258 | |
Employee Stock Purchase Plan [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense recorded | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plan (Summary Of Restricted Stock And Performance Stock Activity) (Details) - Restricted Stock and Performance Stock [Member] | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Outstanding at beginning of period | shares | 186,471 |
Number of Shares, Granted | shares | 78,823 |
Number of Shares, Vested | shares | (96,163) |
Number of Shares, Forfeited | shares | (5,071) |
Number of Shares, Outstanding at end of period | shares | 164,060 |
Weighted Average Grant Date Fair Value, Outstanding at beginning of period | $ / shares | $ 23.91 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 37.21 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 21.48 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 21.90 |
Weighted Average Grant Date Fair Value, Outstanding at end of period | $ / shares | $ 31.79 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plan (Summary Of Stock Option Activities) (Details) - Stock Options [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding at beginning of period, Number of Shares | 301,176 | 646,946 |
Options exercised, Number of Shares | (133,025) | (17,750) |
Options forfeited, Number of Shares | (11,814) | |
Options outstanding at end of period, Number of Shares | 168,151 | 617,382 |
Options exercisable, Number of Shares | 168,151 | 596,297 |
Options outstanding at beginning of period, Weighted Average Exercise Price | $ 16.39 | $ 16.96 |
Options exercised, Weighted Average Exercise Price | 14.49 | 13.94 |
Options forfeited, Weighted Average Exercise Price | 15.64 | |
Options outstanding at end of period, Weighted Average Exercise Price | 17.89 | 17.07 |
Options exercisable, Weighted Average Exercise Price | $ 17.89 | $ 17.11 |
Weighted average remaining term | 4 years 2 months 12 days | 3 years 3 months 18 days |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Taxes [Abstract] | ||
Effective tax rate | 5.70% | 8.20% |
Fair Value Of Financial Instr_2
Fair Value Of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Carrying Amount [Member] | Fixed-Rate Term Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 83.5 | $ 86.5 |
Carrying Amount [Member] | Asset Backed Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 695.4 | 726.9 |
Carrying Amount [Member] | Collateralized Financing Obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 54.4 | 69.6 |
Carrying Amount [Member] | Senior Secured Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 43.6 | 46.7 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financing receivable | 62.2 | 58.4 |
Fair Value [Member] | Fixed-Rate Term Loans [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 87.2 | 91.1 |
Fair Value [Member] | Asset Backed Notes [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 694.3 | 725.8 |
Fair Value [Member] | Collateralized Financing Obligations [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 56.6 | 71.6 |
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 | $ 28.5 | $ 31.2 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Millions | Jun. 30, 2021USD ($) |
Containers [Member] | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Commitments to purchase rental equipment | $ 343.3 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Jun. 30, 2021 | Feb. 28, 2021 | Oct. 31, 2018 | |
Stockholders’ Equity [Abstract] | ||||
Shares authorized for repurchase | 3 | |||
Shares repurchased | 0.4 | |||
Repurchase of common stock | $ 12,788 | $ 12,800 | ||
Additional share authorized for repurchase | 2 | |||
Shares remained available for repurchase | $ 2,400 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Related Parties [Abstract] | ||
Income tax liabilities related to stock-based compensation | $ 1.2 | |
Current asset, reimbursement from officer | $ 1.2 | $ 1.2 |
Segment And Geographic Inform_3
Segment And Geographic Information (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
Segment And Geographic Information [Abstract] | |
Number of reportable segments | 1 |
Segment And Geographic Inform_4
Segment And Geographic Information (Schedule Of Geographic Allocation Of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total leasing revenue | $ 85,695 | $ 69,443 | $ 166,495 | $ 138,556 |
Switzerland [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total leasing revenue | 19,620 | 12,472 | 35,934 | 24,988 |
Korea [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total leasing revenue | 11,095 | 9,899 | 22,405 | 19,138 |
Singapore [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total leasing revenue | 10,763 | 10,098 | 21,369 | 19,948 |
France [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total leasing revenue | 9,353 | 7,730 | 17,747 | 15,360 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total leasing revenue | 1,200 | 1,157 | 2,377 | 2,393 |
Other Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total leasing revenue | 17,730 | 13,593 | 36,080 | 28,833 |
Other Asia [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total leasing revenue | 15,121 | 13,676 | 28,939 | 26,263 |
Other International [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total leasing revenue | $ 813 | $ 818 | $ 1,644 | $ 1,633 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Securities having antidilutive effect | 0 | 654,384 | 0 | 379,662 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation Of Basic And Diluted Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income from continuing operations | $ 35,736 | $ 13,345 | $ 68,206 | $ 23,807 |
Net (loss) income from discontinued operations | (16,178) | 1,063 | (30,177) | |
Net income (loss) attributable to CAI common stockholders | $ 35,736 | $ (2,833) | $ 69,269 | $ (6,370) |
Weighted-average shares used in per share computation - basic | 17,281 | 17,470 | 17,276 | 17,451 |
Effect of dilutive securities: Stock options and restricted stock | 198 | 131 | 228 | 190 |
Weighted-average shares used in per share computation - diluted | 17,479 | 17,601 | 17,504 | 17,641 |
Continuing operations | $ 2.07 | $ 0.76 | $ 3.95 | $ 1.36 |
Discontinued operations | (0.92) | 0.06 | (1.73) | |
Total basic | 2.07 | (0.16) | 4.01 | (0.37) |
Continuing operations | 2.04 | 0.76 | 3.90 | 1.35 |
Discontinued operations | (0.92) | 0.06 | (1.71) | |
Total diluted | $ 2.04 | $ (0.16) | $ 3.96 | $ (0.36) |