CAI International, Inc. Announces Expansion of Revolving Credit Facility and a Financial Update
Monday, June 19, 2017 6:01:00 AM ET
CAI International, Inc. (CAI) (CAI ), one of the worlds leading
transportation finance and logistics companies, today announced an
expansion of its revolving credit facility and provided a financial
CAI has reached agreement with the lenders of its Third Amended and
Restated Revolving Credit Agreement to increase the total loan
commitment from $775 million to $960 million. Other than the increase
in the loan commitment, all other terms of the facility remain
unchanged. This increase provides financing for both existing
container commitments and additional investment.
CAI estimates that its net income for the second quarter of 2017 will
be between $10.7 million and $11.3 million, or 55 cents and 58 cents
per share. This represents an increase of more than 100% compared to
its net income in the first quarter of 2017 of $5.3 million, primarily
as a result of a combination of revenue from new investment, higher
utilization, increased rental rates on expiring contracts and gains on
sale of equipment.
During the year to date, CAI has invested approximately $370 million
in new containers, of which $105 million is expected to be delivered
in the second quarter and $202 million in the third quarter of 2017.
Virtually all of the equipment expected to be delivered in the second
and third quarters is under committed leases with an average lease
term in excess of eight years.
Utilization of CAIs owned container fleet is currently 97.7%, 1.2
percentage points higher than at the end of the first quarter of 2017.
CAI expects utilization to be above 98% during the third quarter.
Based on the level of committed leases on new investment, high
utilization and continued favorable container market conditions, CAI
expects further improvement in operating results throughout 2017.
CAI has committed leases for 185 newly manufactured railcars that it
expects to be on lease by the end of the fourth quarter of 2017.
A presentation with additional information on CAI can be found in the
"Investors" section of CAIs website, www.capps.com.
About CAI International, Inc.
CAI is one of the worlds leading transportation finance and logistics
companies. As of March 31, 2017, CAI operated a worldwide fleet of
approximately 1.2 million CEUs of containers, and owned a fleet of 6,546
railcars that it leases within North America. CAI operates through 24
offices located in 14 countries including the United States.
This press release contains forward-looking statements regarding future
events and the future performance of CAI, including but not limited to,
the statements regarding managements business outlook on the container
leasing business, and managements outlook for growth of CAIs railcar
leasing investments. These statements and others herein 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, utilization rates,
expected economic conditions, expected growth of international trade,
availability of credit on commercially favorable terms or at all,
customer demand, container investment levels, container prices, lease
rates, increased competition, volatility in exchange rates, growth in
world trade and world container trade, the ability of CAI to convert
letters of intent with its customers to binding contracts, potential to
sell CAIs securities to the public 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, 2016, its Quarterly Reports on Form 10-Q and
its Current 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
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SOURCE: CAI International, Inc.
CAI International, Inc.
Tim Page, 415-788-0100
Chief Financial Officer