false--12-31Q1202100013884300.0208300013884302018-10-310001388430us-gaap:CommonStockMember2021-01-012021-03-310001388430us-gaap:CommonStockMember2020-01-012020-03-310001388430us-gaap:RetainedEarningsMember2021-03-310001388430us-gaap:AdditionalPaidInCapitalMember2021-03-310001388430us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001388430us-gaap:RetainedEarningsMember2020-12-310001388430us-gaap:AdditionalPaidInCapitalMember2020-12-310001388430us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001388430us-gaap:RetainedEarningsMember2020-03-310001388430us-gaap:AdditionalPaidInCapitalMember2020-03-310001388430us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001388430us-gaap:RetainedEarningsMember2019-12-310001388430us-gaap:AdditionalPaidInCapitalMember2019-12-310001388430us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001388430us-gaap:PreferredStockMember2021-03-310001388430us-gaap:CommonStockMember2021-03-310001388430us-gaap:PreferredStockMember2020-12-310001388430us-gaap:CommonStockMember2020-12-310001388430us-gaap:PreferredStockMember2020-03-310001388430us-gaap:CommonStockMember2020-03-310001388430us-gaap:PreferredStockMember2019-12-310001388430us-gaap:CommonStockMember2019-12-310001388430us-gaap:EmployeeStockOptionMember2020-12-310001388430us-gaap:EmployeeStockOptionMember2019-12-310001388430us-gaap:EmployeeStockOptionMember2020-03-310001388430cai:EmployeeStockPurchasePlanMember2019-06-300001388430cai:RestrictedStockAndPerformanceStockMember2020-12-310001388430cai:EmployeesMembercai:RestrictedStockAndPerformanceStockMembercai:EachAnniversaryOfGrantDateMember2021-01-012021-03-310001388430us-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2021-01-012021-03-310001388430us-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2021-01-012021-03-310001388430srt:DirectorMemberus-gaap:RestrictedStockMember2021-01-012021-03-310001388430srt:DirectorMemberus-gaap:EmployeeStockOptionMember2021-01-012021-03-310001388430cai:EmployeesMemberus-gaap:RestrictedStockMember2021-01-012021-03-310001388430us-gaap:EmployeeStockOptionMember2021-01-012021-03-310001388430us-gaap:NonUsMember2021-01-012021-03-310001388430srt:EuropeMember2021-01-012021-03-310001388430srt:AsiaMember2021-01-012021-03-310001388430country:US2021-01-012021-03-310001388430country:SG2021-01-012021-03-310001388430country:KR2021-01-012021-03-310001388430country:FR2021-01-012021-03-310001388430country:CH2021-01-012021-03-310001388430cai:OtherRevenueMember2021-01-012021-03-310001388430cai:OperatingLeasesMember2021-01-012021-03-310001388430cai:FinanceLeasesMember2021-01-012021-03-310001388430us-gaap:NonUsMember2020-01-012020-03-310001388430srt:EuropeMember2020-01-012020-03-310001388430srt:AsiaMember2020-01-012020-03-310001388430country:US2020-01-012020-03-310001388430country:SG2020-01-012020-03-310001388430country:KR2020-01-012020-03-310001388430country:FR2020-01-012020-03-310001388430country:CH2020-01-012020-03-310001388430cai:OtherRevenueMember2020-01-012020-03-310001388430cai:OperatingLeasesMember2020-01-012020-03-310001388430cai:FinanceLeasesMember2020-01-012020-03-310001388430us-gaap:ContainersMember2021-03-310001388430us-gaap:OtherTransportationEquipmentMember2021-03-310001388430cai:RefrigeratedContainersMember2021-03-310001388430cai:DryContainersMember2021-03-310001388430us-gaap:OtherTransportationEquipmentMember2020-12-310001388430cai:RefrigeratedContainersMember2020-12-310001388430cai:DryContainersMember2020-12-310001388430cai:RailcarAssetsMember2020-12-292020-12-290001388430cai:RailcarAssetsMember2020-10-012020-12-310001388430cai:LogisticsMember2020-08-142020-08-140001388430cai:LogisticsMember2020-07-012020-09-300001388430cai:SeriesCumulativePreferredStockMember2021-03-310001388430cai:SeriesBCumulativePreferredStockMember2021-03-310001388430cai:SeriesCumulativePreferredStockMember2020-12-310001388430cai:SeriesBCumulativePreferredStockMember2020-12-310001388430cai:SeriesCumulativePreferredStockMember2020-01-012020-12-310001388430cai:SeriesBCumulativePreferredStockMember2020-01-012020-12-310001388430us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001388430us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001388430us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-310001388430us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001388430us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LoansPayableMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-310001388430us-gaap:FairValueInputsLevel2Memberus-gaap:CollateralizedDebtObligationsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-310001388430us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-310001388430us-gaap:FairValueInputsLevel2Membercai:FixedRateTermLoansMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-03-310001388430us-gaap:SecuredDebtMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-310001388430us-gaap:CollateralizedDebtObligationsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-310001388430us-gaap:AssetBackedSecuritiesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-310001388430cai:FixedRateTermLoansMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-03-310001388430us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LoansPayableMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001388430us-gaap:FairValueInputsLevel2Memberus-gaap:CollateralizedDebtObligationsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001388430us-gaap:FairValueInputsLevel2Memberus-gaap:AssetBackedSecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001388430us-gaap:FairValueInputsLevel2Membercai:FixedRateTermLoansMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001388430us-gaap:SecuredDebtMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001388430us-gaap:CollateralizedDebtObligationsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001388430us-gaap:AssetBackedSecuritiesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001388430cai:FixedRateTermLoansMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001388430cai:ConsortiumOfBanksMemberus-gaap:RevolvingCreditFacilityMember2021-03-310001388430us-gaap:RiskLevelLowMember2021-03-310001388430us-gaap:RiskLevelMediumMember2020-12-310001388430us-gaap:RiskLevelMediumMember2021-03-310001388430us-gaap:RiskLevelLowMember2020-12-310001388430us-gaap:PerformanceSharesMember2021-01-012021-03-310001388430cai:RestrictedStockAndPerformanceStockMember2021-03-310001388430us-gaap:RetainedEarningsMember2020-01-012020-03-310001388430us-gaap:RetainedEarningsMember2021-01-012021-03-310001388430us-gaap:InterestRateSwapMember2020-07-012020-07-310001388430us-gaap:OtherComprehensiveIncomeMember2021-01-012021-03-310001388430us-gaap:InterestExpenseMember2021-01-012021-03-310001388430us-gaap:InterestRateSwapMember2021-03-310001388430us-gaap:InterestRateSwapMember2020-07-310001388430us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001388430us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001388430us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001388430us-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001388430us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LoansPayableMember2021-01-012021-03-310001388430us-gaap:RevolvingCreditFacilityMembercai:CaiInternationalGmbhMember2021-01-012021-03-310001388430cai:TermLoanDueOctober2023Memberus-gaap:LoansPayableMember2021-01-012021-03-310001388430cai:TermLoanDueJune2021Memberus-gaap:LoansPayableMember2021-01-012021-03-310001388430cai:TermLoanDueApril2023Memberus-gaap:LoansPayableMember2021-01-012021-03-310001388430cai:Series20201AssetBackedNotesMemberus-gaap:AssetBackedSecuritiesMember2021-01-012021-03-310001388430us-gaap:SecuredDebtMember2021-01-012021-03-310001388430us-gaap:RevolvingCreditFacilityMember2021-01-012021-03-310001388430us-gaap:CollateralizedDebtObligationsMember2021-01-012021-03-310001388430cai:SecondLargestMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-03-310001388430cai:OneMajorCustomerMembercai:FinanceLeaseMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-03-310001388430cai:LargestCustomerMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-03-310001388430cai:OneMajorCustomerMembercai:FinanceLeaseMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-12-3100013884302020-03-3100013884302019-12-310001388430us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:ContainersMember2021-03-310001388430srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember2021-03-310001388430srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember2020-12-310001388430us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-03-310001388430srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember2020-03-310001388430us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2019-12-310001388430srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember2019-12-310001388430us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-03-310001388430us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-12-310001388430srt:MaximumMemberus-gaap:EmployeeStockOptionMember2021-01-012021-03-310001388430srt:MaximumMembercai:EmployeeStockPurchasePlanMember2021-01-012021-03-310001388430cai:RestrictedStockAndPerformanceStockMember2021-01-012021-03-310001388430srt:MaximumMembercai:EmployeeStockPurchasePlanMember2020-01-012020-03-310001388430us-gaap:EmployeeStockOptionMember2020-01-012020-03-310001388430cai:RestrictedStockAndPerformanceStockMember2020-01-012020-03-310001388430us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001388430us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310001388430us-gaap:CommonStockMember2021-01-012021-03-310001388430cai:SeriesCumulativePreferredStockMember2021-01-012021-03-310001388430cai:SeriesBCumulativePreferredStockMember2021-01-012021-03-3100013884302021-04-3000013884302021-02-280001388430us-gaap:DiscontinuedOperationsHeldforsaleMembercai:RailcarAssetsMember2021-01-012021-03-310001388430cai:FinanceLeaseMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-03-310001388430cai:FinanceLeaseMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-12-310001388430us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:ContainersMember2021-01-012021-03-310001388430us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:ContainersMember2020-01-012020-03-310001388430us-gaap:SegmentDiscontinuedOperationsMembercai:RailcarAssetsMember2021-01-012021-03-310001388430us-gaap:SegmentDiscontinuedOperationsMembercai:LogisticsMember2021-01-012021-03-310001388430us-gaap:SegmentDiscontinuedOperationsMember2021-01-012021-03-310001388430us-gaap:SegmentDiscontinuedOperationsMembercai:RailcarAssetsMember2020-01-012020-03-310001388430us-gaap:SegmentDiscontinuedOperationsMembercai:LogisticsMember2020-01-012020-03-310001388430us-gaap:SegmentDiscontinuedOperationsMember2020-01-012020-03-310001388430us-gaap:RevolvingCreditFacilityMembercai:CaiInternationalGmbhMember2021-03-310001388430us-gaap:RevolvingCreditFacilityMember2021-03-310001388430us-gaap:RevolvingCreditFacilityMembercai:CaiInternationalGmbhMember2020-12-310001388430us-gaap:RevolvingCreditFacilityMember2020-12-310001388430us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LoansPayableMember2021-03-310001388430cai:TermLoanDueOctober2023Memberus-gaap:LoansPayableMember2021-03-310001388430cai:TermLoanDueJune2021Memberus-gaap:LoansPayableMember2021-03-310001388430cai:TermLoanDueApril2023Memberus-gaap:LoansPayableMember2021-03-310001388430cai:Series20201AssetBackedNotesMemberus-gaap:AssetBackedSecuritiesMember2021-03-310001388430us-gaap:SecuredDebtMember2021-03-310001388430us-gaap:CollateralizedDebtObligationsMember2021-03-3100013884302021-03-310001388430us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:LoansPayableMember2020-12-310001388430cai:TermLoanDueOctober2023Memberus-gaap:LoansPayableMember2020-12-310001388430cai:TermLoanDueJune2021Memberus-gaap:LoansPayableMember2020-12-310001388430cai:TermLoanDueApril2023Memberus-gaap:LoansPayableMember2020-12-310001388430cai:Series20201AssetBackedNotesMemberus-gaap:AssetBackedSecuritiesMember2020-12-310001388430us-gaap:SecuredDebtMember2020-12-310001388430us-gaap:CollateralizedDebtObligationsMember2020-12-3100013884302020-12-3100013884302020-01-012020-03-3100013884302021-01-012021-03-310001388430us-gaap:EmployeeStockOptionMember2021-03-31xbrli:sharesxbrli:purecai:customercai:itemiso4217:USDiso4217:USDxbrli:shares

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

 

x        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

or

o        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-33388

CAI International, Inc.

(Exact name of registrant as specified in its charter)

Delaware

 

94-3109229

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

 

Steuart Tower, 1 Market Plaza, Suite 2400

 

 

San Francisco, California

 

94105

(Address of principal executive offices)

 

(Zip Code)

415-788-0100

(Registrant’s telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

 

Le

Title of each class

Trading symbols

Name of exchange on which registered

Common Stock, par value $0.0001 per share

CAI

New York Stock Exchange

8.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock, par value $0.0001 per share

CAI-PA

New York Stock Exchange

8.50% Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock, par value $0.0001 per share

CAI-PB

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x    No   o

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  x    No   o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

o

Accelerated filer

x

Non-accelerated filer

o  

Smaller reporting company

o

Emerging growth company

o

If an emerging growth company, indicate by check mark of the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o   No   x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock

 

April 28, 2021

Common Stock, $0.0001 par value per share

 

17, 304,111 shares

1


Table of Contents

CAI INTERNATIONAL, INC.

INDEX

 

 

 

Page No.

Part I — Financial Information

4

Item 1.

Financial Statements (Unaudited)

4

 

Consolidated Balance Sheets at March 31, 2021 and December 31, 2020

4

Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020

6

 

Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2021 and 2020

7

Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2021 and 2020

8

 

Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020

9

 

Notes to Unaudited Consolidated Financial Statements

11

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

21

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

27

Item 4.

Controls and Procedures

27

Part II — Other Information

28

Item 1.

Legal Proceedings

28

Item 1A.

Risk Factors

28

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

28

Item 3.

Defaults Upon Senior Securities

28

Item 4.

Mine Safety Disclosures

28

Item 5.

Other Information

28

Item 6.

Exhibits

29

Signatures

30

 


2


Table of Contents

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q contains certain forward-looking statements, including, without limitation, statements concerning the conditions in our industry, our operations, our economic performance and financial condition, including, but not limited to, statements relating to our business, operations, growth strategy, service development efforts and the impact of the novel coronavirus (COVID-19) on our business, financial condition, liquidity and results of operations. The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements so long as such information is identified as forward-looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the information. When used in this Quarterly Report on Form 10-Q, the words “may,” “might,” “should,” “estimate,” “project,” “plan,” “anticipate,” “expect,” “intend,” “outlook,” “believe” and other similar expressions are intended to identify forward-looking statements and information. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based on estimates and assumptions by our management that, although we believe to be reasonable, are inherently uncertain and subject to a number of risks and uncertainties. These risks and uncertainties include, without limitation, those in our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission (SEC) on March 1, 2021, our Quarterly Reports on Form 10-Q and our other reports filed with the SEC. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. Reference is also made to such risks and uncertainties detailed from time to time in our other filings with the SEC.


3


Table of Contents

PART I — FINANCIAL INFORMATION

 

ITEM 1.  FINANCIAL STATEMENTS

CAI INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share information)

(UNAUDITED)

March 31,

December 31,

2021

2020

Assets

Current assets

Cash

$

23,971 

$

26,691 

Cash held by variable interest entities

23,942 

26,856 

Current portion of restricted cash

600 

600 

Accounts receivable, net of allowance for doubtful accounts of $400 and

$393 at March 31, 2021 and December 31, 2020, respectively

61,843 

65,310 

Current portion of net investment in finance leases

80,308 

78,992 

Current portion of financing receivable

10,615 

9,550 

Prepaid expenses and other current assets

5,788 

6,663 

Total current assets

207,067 

214,662 

Restricted cash

12,087 

12,355 

Rental equipment, net of accumulated depreciation of $691,842 and

$669,360 at March 31, 2021 and December 31, 2020, respectively

1,808,001 

1,781,321 

Net investment in finance leases

585,016 

550,573 

Financing receivable

50,568 

48,888 

Derivative instruments

9,586 

-

Other non-current assets

4,280 

4,833 

Total assets (1)

$

2,676,605 

$

2,612,632 

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable

$

3,231 

$

3,666 

Accrued expenses and other current liabilities

26,569

29,598 

Unearned revenue

3,260 

3,029 

Current portion of debt

183,878 

183,448 

Rental equipment payable

61,582 

100,509 

Total current liabilities

278,520

320,250 

Debt

1,642,879 

1,562,283 

Derivative instruments

-

80 

Net deferred income tax liability

25,532

24,442 

Other non-current liabilities

3,467 

3,337 

Total liabilities (2)

1,950,398

1,910,392 

Stockholders' equity

Preferred stock, par value $0.0001 per share; authorized 10,000,000

8.50% Series A fixed-to-floating rate cumulative redeemable perpetual preferred stock, issued and

outstanding 2,199,610 shares, at liquidation preference

54,990 

54,990 

8.50% Series B fixed-to-floating rate cumulative redeemable perpetual preferred stock, issued and

outstanding 1,955,000 shares, at liquidation preference

48,875 

48,875 

Common stock, par value $0.0001 per share; authorized 84,000,000 shares; issued and outstanding

17,304,111 and 17,562,779 shares at March 31, 2021 and December 31, 2020, respectively

2 

2 

Additional paid-in capital

89,308 

100,795 

Accumulated other comprehensive loss

1,370 

(5,743)

Retained earnings

531,662

503,321 

Total stockholders' equity

726,207

702,240 

Total liabilities and stockholders' equity

$

2,676,605 

$

2,612,632 


4


Table of Contents

(1)Total assets at March 31, 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, $23,942 and $26,856; Net investment in finance leases, $2,150 and $2,683; and Rental equipment, net of accumulated depreciation, $73,212, and $77,907, respectively.

(2)Total liabilities at March 31, 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, $43,392 and $41,344; Debt, $48,120 and $59,519, respectively.

See accompanying notes to unaudited consolidated financial statements. 


5


Table of Contents

CAI INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(UNAUDITED)

Three Months Ended March 31,

2021

2020

Leasing revenue

Operating leases

$

63,867 

$

54,629 

Finance leases

13,245 

11,590 

Other

3,688 

2,894 

Total leasing revenue

80,800 

69,113 

Operating expenses

Depreciation of rental equipment

28,551 

27,048 

Storage, handling and other expenses

2,489 

4,429 

Gain on sale of rental equipment

(6,743)

(1,647)

Administrative expenses

7,740 

6,895 

Total operating expenses

32,037 

36,725 

Operating income

48,763 

32,388 

Other expenses

Net interest expense

11,172 

18,274 

Other expense

410 

246 

Total other expenses

11,582 

18,520 

Income before income taxes

37,181 

13,868 

Income tax expense

2,504 

1,199 

Income from continuing operations

34,677 

12,669 

Income (loss) from discontinued operations, net of income taxes

1,063 

(13,999)

Net income (loss)

35,740 

(1,330)

Preferred stock dividends

2,207 

2,207 

Net income (loss) attributable to CAI common stockholders

$

33,533 

$

(3,537)

Amounts attributable to CAI common stockholders

Net income from continuing operations

$

32,470 

$

10,462 

Net income (loss) from discontinued operations

1,063 

(13,999)

Net income (loss) attributable to CAI common stockholders

$

33,533 

$

(3,537)

Net income (loss) per share attributable to CAI

common stockholders

Basic

Continuing operations

$

1.88 

$

0.60 

Discontinued operations

0.06 

(0.80)

Total basic

$

1.94 

$

(0.20)

Diluted

Continuing operations

$

1.85 

$

0.59 

Discontinued operations

0.06 

(0.79)

Total diluted

$

1.91 

$

(0.20)

Weighted average shares outstanding

Basic

17,271 

17,433 

Diluted

17,518 

17,715 

See accompanying notes to unaudited consolidated financial statements.


6


Table of Contents

CAI INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(UNAUDITED)

Three Months Ended March 31,

2021

2020

Net income (loss)

$

35,740 

$

(1,330)

Other comprehensive income (loss), net of tax:

Change in fair value of derivative instruments designated as cash flow hedges

9,509 

-

Reclassification of realized loss on derivative instruments designated as cash flow hedges

157 

-

Foreign currency translation adjustments

(522)

(137)

Comprehensive income (loss) before tax

44,884 

(1,467)

Income tax expense related to items of other comprehensive income (loss)

(2,031)

-

Comprehensive income (loss) before preferred stock dividends, net of tax

42,853 

(1,467)

Dividends on preferred stock

(2,207)

(2,207)

Comprehensive income (loss) available to CAI common stockholders

$

40,646 

$

(3,674)

See accompanying notes to unaudited consolidated financial statements.


7


Table of Contents

CAI INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

(UNAUDITED)

Accumulated

Additional

Other

Preferred Stock

Common Stock

Paid-In

Comprehensive

Retained

Total

Shares

Amount

Shares

Amount

Capital

Loss

Earnings

Equity

Balances as of December 31, 2020

4,155 

$

103,865 

17,563 

$

2 

$

100,795 

$

(5,743)

$

503,321 

$

702,240 

Net income

-

-

-

-

-

-

35,740