CAI International, Inc. Reports Results for the Fourth Quarter and Full Year of 2012

  CAI International, Inc. Reports Results for the Fourth Quarter and Full Year
  of 2012

Business Wire

SAN FRANCISCO -- February 13, 2013

CAI International, Inc. (CAI) (NYSE: CAP), one of the world’s leading lessors
of intermodal freight containers, today reported record results for the fourth
quarter and full year of 2012.

Highlights for the Fourth Quarter and Full Year of 2012

  *CAI reported record net income attributable to CAI common stockholders for
    the fourth quarter of 2012 of $0.85 per fully diluted share, a 29%
    increase compared to $0.66 for the fourth quarter of 2011.
  *For the full year of 2012, CAI reported record net income attributable to
    CAI common stockholders of $3.18 per fully diluted share, a 25% increase
    compared to $2.55 reported in 2011.
  *Rental revenue for the fourth quarter of 2012 increased 40% compared to
    the fourth quarter of 2011 and 11% compared to the third quarter of 2012,
    the 11^th consecutive quarter of record rental revenue.
  *CAI invested a record $522 million in rental equipment in 2012.
  *During October 2012, CAI completed the acquisition of approximately 71,000
    TEUs of containers, for a net cost of $83.6 million, from German
    investors. Prior to the purchase, CAI managed these containers on behalf
    of the previous owners.
  *During October 2012, CAI issued $171.0 million of 3.47% fixed rate
    asset-backed notes, the proceeds from which were used to repay part of the
    Company’s borrowings under its revolving credit facility.
  *During December 2012 CAI issued approximately 2.8 million shares of common
    stock in a follow-on public offering and received proceeds of $51.5
    million, net of fees and expenses.

Net income attributable to CAI common stockholders for the fourth quarter of
2012 was $17.4 million, compared to $12.9 million for the fourth quarter of
2011, an increase of 35%. Net income attributable to CAI common stockholders
for the year ended December 31, 2012 was $63.5 million, compared to $50.2
million for the year ended December 31, 2011, an increase of 26%.

Total revenue for the fourth quarter of 2012 was $49.9 million, compared to
$36.2 million for the fourth quarter of 2011, an increase of 38%. Rental
revenue for the fourth quarter of 2012 was $44.9 million, compared to $32.0
million for the fourth quarter of 2011, an increase of 40%. The increase in
rental revenue was primarily due to an increase in the average number of TEUs
of owned containers on lease. Management fee revenue for the fourth quarter of
2012 was $2.4 million, compared to $3.1 million for the fourth quarter of
2011, primarily due to a reduction in the average number of TEUs of managed
equipment on lease as CAI has acquired a number of its previously managed
portfolios over the course of the past year. Finance lease income for the
fourth quarter of 2012 increased to $2.5 million, from $1.1 million in the
fourth quarter of 2011, reflective of new finance leases entered into during
2012.

Total revenue for the year ended December 31, 2012 was $173.9 million,
compared to $125.7 million for 2011, an increase of 38%. Rental revenue for
the year ended December 31, 2012 was $153.0 million, compared to $106.7
million for 2011, an increase of 43%. The increase in rental revenue was
primarily due to a 44% increase in the average number of TEUs of owned
containers on lease compared to 2011. Management fee revenue for the year
ended December 31, 2012 was $12.1 million, compared to $13.0 million for 2011,
primarily due to a reduction in the average number of TEUs of managed
equipment on lease. Gain on sale of container portfolios for the year ended
December 31, 2012 was $1.3 million, compared to $2.3 million for 2011. Finance
lease income for the year ended December 31, 2012 increased to $7.6 million,
from $3.7 million in 2011.

Victor Garcia, Chief Executive Officer of CAI, commented, “2012 was an
excellent year for our company. We achieved strong revenue and earnings
growth, generating $63.5 million of net income, a 26% increase compared to
2011. During the year we invested more than $520 million in equipment, a
record level for CAI. In addition to investment in new containers, we were
able to finalize a number of other very attractive investment opportunities,
including sale leaseback transactions with our shipping customers and the
purchase of container portfolios from our managed fleet. While our overall
fleet utilization softened slightly during 2012 from the record levels seen in
2010 and 2011, it remained robust at an average for the year of 94.2%.

“The fourth quarter of 2012 saw the normal seasonal pattern of softening
utilization, our average utilization dropping from 94.8% in the third quarter
to 93.4% in the fourth quarter. At the end of the year, the utilization of our
fleet was 92.5%. Our utilization in the first quarter of 2013 has stabilized
around that level and we believe utilization will increase over the remainder
of the quarter and into the second quarter based on increasing demand for
equipment by our customers.

Mr. Garcia continued, “During December 2012, we closed a public offering of
our stock from which we received proceeds of more than $50 million. The new
equity provides the Company with sufficient financial resources to pursue
additional market opportunities in 2013. We expect that by the end of the
first quarter of 2013 we will have invested approximately $100 million in
portfolio purchases and sale leaseback opportunities that will begin
generating income in the second quarter of 2013. To serve our customers’
needs, we are also investing in new containers as we believe demand in the
second quarter will be strong. We expect 2013 will be a strong year for
investment, revenue and earnings, with first quarter net income below that of
the fourth quarter of 2012, due substantially to the normal seasonal decline
in utilization and the limited impact new investment will have on the
quarter’s revenue.

Mr. Garcia concluded, “We believe the prospects for new container investment
in 2013 for CAI and the container leasing industry remain compelling. The
second half of 2012 saw a limited amount of new container production, which we
believe resulted in below normal industry-wide levels of new container
inventory at the factories for this time of year. At the same time, we expect
a recovery in global trade; Clarkson Research has estimated that containerized
trade will grow by approximately 6% in 2013, as compared to a growth rate of
4% in 2012. Expected trade growth, continued high utilization levels of lessor
fleets and our belief that many shipping companies will continue to have
limited budgets for container purchases in the coming year, are all factors
that we believe will lead to a strong market for our continued investment in
new containers. We believe that a strong market for new container investment,
combined with a continuation of opportunities for sale leasebacks with
customers and the repurchase of managed portfolios, will lead to continued
strong growth in revenue and profitability for CAI in 2013.”

CAI International, Inc.
Consolidated Balance Sheets
(In thousands, except share information)
(UNAUDITED)
                                                 
                                                   December 31,   December 31,
                                                    2012          2011    
Assets
Current assets
Cash                                               $ 17,671       $  14,078
Accounts receivable (owned fleet), net of
allowance for doubtful accounts
of $794 and $819 at December 31, 2012 and 2011,      32,627          26,381
respectively
Accounts receivable (managed fleet)                  19,131          19,054
Current portion of direct finance leases             10,625          6,158
Prepaid expenses                                     11,952          7,079
Deferred tax assets                                  2,189           1,968
Other current assets                                919           185     
Total current assets                                 95,114          74,903
Restricted cash                                      4,376           599
Rental equipment, net of accumulated
depreciation of $147,654 and
$109,336 at December 31, 2012 and 2011,              1,210,234       841,847
respectively
Net investment in direct finance leases              74,929          31,591
Furniture, fixtures and equipment, net of
accumulated depreciation of
$1,254 and $1,006 at December 31, 2012 and 2011,     1,847           2,095
respectively
Intangible assets, net of accumulated
amortization of $7,447 and $6,519
at December 31, 2012 and 2011, respectively         1,441         2,333   
Total assets                                       $ 1,387,941   $  953,368 
                                                                  
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable                                   $ 5,985        $  3,536
Accrued expenses and other current liabilities       8,465           5,761
Due to container investors                           18,589          20,113
Unearned revenue                                     7,893           6,786
Current portion of debt                              61,044          25,764
Current portion of capital lease obligations         2,242           3,792
Rental equipment payable                            2,561         13,301  
Total current liabilities                            106,779         79,053
Debt                                                 888,990         575,014
Deferred income tax liability                        40,051          33,816
Capital lease obligations                            5,084           16,480
Income taxes payable                                192           269     
Total liabilities                                   1,041,096     704,632 
                                                                  
Stockholders' equity
Common stock: par value $.0001 per share;
authorized 84,000,000 shares; issued and
outstanding 22,052,529 and 19,295,359 shares at      2               2
December 31, 2012 and 2011, respectively
Additional paid-in capital                           181,063         128,183
Accumulated other comprehensive loss                 (2,917    )     (3,381  )
Retained earnings                                   168,697       105,232 
Total CAI stockholders' equity                       346,845         230,036
Non-controlling interest                            -             18,700  
Total stockholders' equity                          346,845       248,736 
Total liabilities and stockholders' equity         $ 1,387,941   $  953,368 

CAI International, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(UNAUDITED)
                                                              
                           Three Months Ended        Year Ended
                           December 31,              December 31,
                            2012       2011       2012        2011    
Revenue
Rental revenue             $ 44,921     $ 32,005     $ 152,982     $ 106,694
Management fee revenue       2,395        3,102        12,094        12,957
Gain on sale of              -            -            1,256         2,345
container portfolios
Finance lease income        2,538      1,136      7,593       3,710   
Total revenue               49,854     36,243     173,925     125,706 
                                                                   
Operating expenses
Depreciation of rental       14,146       10,907       48,352        33,633
equipment
Amortization of              226          229          902           1,254
intangible assets
Gain on disposition of       (3,634 )     (3,223 )     (12,445 )     (13,374 )
used rental equipment
Storage, handling and        3,437        1,994        9,402         5,513
other expenses
Marketing, general and       6,048        5,573        24,658        21,009
administrative expenses
Loss (gain) on foreign      45         (138   )    170         (354    )
exchange
Total operating expenses    20,268     15,342     71,039      47,681  
                                                                   
Operating income            29,586     20,901     102,886     78,025  
                                                                   
Interest expense             9,361        5,336        28,796        16,139
Interest income             (1     )    (6     )    (9      )    (12     )
Net interest expense        9,360      5,330      28,787      16,127  
                                                                   
Net income before income
taxes and                    20,226       15,571       74,099        61,898
non-controlling interest
Income tax expense          2,815      2,648      9,818       11,084  
                                                                   
Net income                   17,411       12,923       64,281        50,814
Net income attributable
to non-controlling          -          (32    )    (816    )    (625    )
interest
Net income attributable
to CAI common              $ 17,411    $ 12,891    $ 63,465     $ 50,189  
stockholders
                                                                   
Net income per share
attributable to CAI
common stockholders
Basic                      $ 0.87       $ 0.67       $ 3.26        $ 2.60
Diluted                    $ 0.85       $ 0.66       $ 3.18        $ 2.55
                                                                   
Weighted average shares
outstanding
Basic                        20,090       19,295       19,495        19,295
Diluted                      20,581       19,564       19,945        19,693

CAI International, Inc.
Fleet Data
(UNAUDITED)
                                          
                                As of December 31,
                                2012        2011
                                            
Owned container fleet in TEUs   704,417     458,254
Managed container fleet in TEUs 359,133     470,401
Total container fleet in TEUs   1,063,550   928,655
                                            
                                            
                                            
Owned railcar fleet in units    1,456       -

Conference Call

A conference call to discuss the financial results for the fourth quarter of
2012 will be held on Wednesday, February 13, 2013 at 5:00 p.m. ET. The dial-in
number for the teleconference is 1-888-398-8098; outside of the U.S., call
1-707-287-9363. The call may be accessed live over the Internet (listen only)
under the “Investors” tab of CAI’s website, www.capps.com, by selecting “Q4
2012 Earnings Conference Call.” A webcast replay will be available for 30 days
on the “Investors” tab of our website.

About CAI International, Inc.

CAI is one of the world’s leading managers and lessors of intermodal freight
containers. As of December 31, 2012, CAI operated a worldwide fleet of
approximately 1,064,000 TEUs of containers through 16 offices located in 12
countries including the United States.

This press release contains forward-looking statements regarding future events
and the future performance of CAI International, Inc. These statements are
forward looking statements within the meaning of the safe harbor provisions of
Section 21E of the Securities Exchange Act of 1934 and involve risks and
uncertainties that could cause actual results of operations and other
performance measures to differ materially from current expectations including,
but not limited to, our ability to secure new agreements for container
purchases and sale leaseback opportunities by the end of Q1 2013, utilization
rates, expected economic conditions, availability of credit on commercially
favorable terms or at all, customer demand, container investment levels,
container production levels, container prices, lease rates, increased
competition, volatility in exchange rates, growth in world trade and world
container trade, and others. CAI refers you to the documents that it has filed
with the Securities and Exchange Commission, including its annual report on
Form 10-K for the year ended December 31, 2011 and its interim reports on Form
10-Q and its reports on Form 8-K. These documents contain additional important
factors that could cause actual results to differ from current expectations
and from forward-looking statements contained in this press release.
Furthermore, CAI is under no obligation to (and expressly disclaims any such
obligation to) update or alter any of the forward-looking statements contained
in this press release whether as a result of new information, future events or
otherwise, unless required by law.

Contact:

CAI International, Inc.
Tim Page, Chief Financial Officer
415-788-0100
tpage@capps.com