CAI International, Inc. Announces Expansion of Revolving Credit Facility and a Financial Update
June 19 2017 - 06:01AM
Business Wire
CAI International, Inc. (CAI) (NYSE: CAI), one of the world’s
leading transportation finance and logistics companies, today
announced an expansion of its revolving credit facility and
provided a financial update.
Highlights
- 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 CAI’s 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 CAI’s
website, www.capps.com.
About CAI International, Inc.
CAI is one of the world’s 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.
Forward-Looking Statements
This press release contains forward-looking statements regarding
future events and the future performance of CAI, including but not
limited to, the statements regarding management's business outlook
on the container leasing business, and management's outlook for
growth of CAI’s 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
CAI’s 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 by
law.
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version on businesswire.com: http://www.businesswire.com/news/home/20170619005332/en/
CAI International, Inc.Tim Page, 415-788-0100Chief Financial
Officertpage@capps.com
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