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CAI International Inc. Reports Operating Results (10-Q)

August 06, 2010 | About:

10qk

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CAI International Inc. (CAP) filed Quarterly Report for the period ended 2010-06-30.

Cai International Inc. has a market cap of $259.2 million; its shares were traded at around $14.47 with a P/E ratio of 19.3 and P/S ratio of 4. CAP is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Columbia Wanger of Columbia Wanger Asset Management.

Highlight of Business Operations:

Amortization of Intangible Assets. Amortization expense relating to intangible assets for the three months ended June 30, 2010 decreased $59,000, or 14.8%, to $341,000 from $400,000 during the same period last year. The decrease was attributable primarily to exchange rate differences on the reporting of the amortization of Consent intangibles, which are recorded in Euros and translated to U.S. dollars, and to the end of amortization of trademark and software acquired from Consent which have been fully amortized since the third quarter of 2009.

Marketing, General and Administrative Expense (MG&A). MG&A costs increased by $750,000, or 15.7%, to $5.5 million for the three months ended June 30, 2010 from $4.8 million for the three months ended June 30, 2009. The increase was primarily attributable to a $671,000 increase in provision for bad debts relating primarily to one container shipping line, and higher travel expenses.

Container Leasing. Total revenue from our container leasing segment increased $416,000, or 3.0%, to $14.5 million for the three months ended June 30, 2010 from $14.1 million during the three months ended June 30, 2009. Container rental revenue increased by $517,000 but was partly offset by a decrease of $101,000 in finance lease income. The increase in container rental revenue was primarily driven by the higher utilization of our owned containers, increase in the average number of owned containers on lease and higher average per diem rate on short-term leases, partly offset by the decrease in the average per diem rate for long-term leases. Finance lease income declined from the same period last year due primarily to the impact of converting certain DFL contracts to operating leases and expiration of certain contracts after June 30, 2009.

Container Management. Total revenue of $2.9 million from our container management segment for the three months ended June 30, 2010 was $286,000, or 11.0%, higher than the $2.6 million revenue from our container management segment for the three months ended June 30, 2009. This increase in revenue was primarily due to a $435,000, or 20.7%, increase in management fee revenue, partly offset by a $149,000 decrease in gain on sale of container portfolios, compared to the three months ended June 30, 2009. The increase in management fee revenue was attributable to the higher utilization of our managed containers and an increase in the average number of managed containers on lease which resulted in a higher profitability of some of our investor portfolios from which we derived our management fee income.

Management Fee Revenue. Management fee revenue for the six months ended June 30, 2010 was $4.7 million, an increase of $123,000, or 2.7%, from $4.6 million for the same period in 2009. The increase was due primarily to the increase in deal origination fees earned on management contracts. In addition, the increase in average utilization rate and average quantity of managed containers on lease resulted in higher NOI for certain customers on which our management fees are based.

Amortization of Intangible Assets. Amortization expense relating to intangible assets for the six months ended June 30, 2010 decreased $113,000, or 14.0%, to $695,000 from $808,000 during the same period last year. The decrease resulted primarily from exchange rate differences on the reporting of the amortization of Consent intangibles, which are recorded in Euros and translated to U.S. dollars, and the end of amortization of trademark and software acquired from Consent which have been fully amortized since the third quarter of 2009.

Read the The complete Report

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10qk
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