CAI International, Inc. Reports Record Fourth Quarter Results and Full Year 2020 Results, Announces Increase in its Quarterly Dividend and Expands its Share Repurchase Program
SAN FRANCISCO--(BUSINESS WIRE)--CAI International, Inc. (“CAI” or the “Company”) (NYSE: CAI), one of the world’s leading transportation finance companies, today reported results for the fourth quarter and full year of 2020.
Highlights
- Net income from continuing operations attributable to CAI common stockholders for the fourth quarter of 2020 was a record $32.5 million, or $1.81 per fully diluted share.
- Adjusted net income from continuing operations attributable to CAI common stockholders1 for the fourth quarter of 2020 was also a record at $31.6 million, or $1.76 per fully diluted share.
- Return on equity on adjusted net income from continuing operations1 was 21.2% in the fourth quarter of 2020.
- Container lease revenue for the fourth quarter of 2020 was a record $81.6 million, compared to $73.9 million in the third quarter of 2020.
- CAI’s Board of Directors declared a cash dividend of $0.30 per common share payable on March 25, 2021 to shareholders of record as of March 11, 2021.
- Average CEU utilization for CAI’s owned container fleet during the fourth quarter of 2020 was 99.3%, compared to 98.4% for the third quarter of 2020. Current CEU utilization is 99.7%.
- Under the previously approved share repurchase program, CAI repurchased approximately 249,000 shares of common stock during the fourth quarter of 2020 at an average price of $31.95 per share. CAI has purchased an additional 390,000 shares in the first quarter of 2021 to date.
Financial and Operating Highlights |
||||||||||
| Three Months Ended | ||||||||||
| December 31, 2020 |
September 30, 2020 |
December 31, 2019 |
||||||||
| Container lease revenue | $ |
81,567 |
$ |
73,890 |
$ |
73,521 |
||||
| Continuing operations GAAP | ||||||||||
| Net income attributable to common stockholders | $ |
32,511 |
$ |
15,295 |
$ |
10,589 |
||||
| Net income per share - diluted | $ |
1.81 |
$ |
0.86 |
$ |
0.60 |
||||
| Continuing operations non-GAAP 1 | ||||||||||
| Adjusted net income attributable to common stockholders | $ |
31,622 |
$ |
18,701 |
$ |
10,589 |
||||
| Adjusted net income per share - diluted | $ |
1.76 |
$ |
1.06 |
$ |
0.60 |
||||
| Return on equity (continuing operations) 2 |
|
21.2% |
|
12.7% |
|
7.3% |
||||
| Total container fleet size in CEUs at end of period |
|
1,798,520 |
|
1,732,547 |
|
1,727,816 |
||||
| Container fleet utilization at end of period |
|
99.6% |
|
99.0% |
|
98.3% |
||||
1 Refer to the “Reconciliation of GAAP Amounts to Non-GAAP Amounts” and “Use of Non-GAAP Financial Measures” set forth below. |
2 Refer to the “Calculation of Return on Equity” set forth below. |
Timothy Page, Interim President and Chief Executive Officer of CAI, commented, “We are very pleased with our results during the fourth quarter. Adjusted net income from continuing operations attributable to CAI common stockholders was a record $31.6 million, an increase of 69% compared to the third quarter of 2020. Container lease revenue was $82 million, also a record, and a 10% increase from the third quarter.
“During the quarter we delivered on all of our stated initiatives to maximize shareholder value:
- We invested aggressively, leasing out $154 million in new long-dated leases with attractive yields and an average tenure of 11 years. Since the end of June 2020, we have invested $300 million and grown our container revenue assets by 6%. This investment, with its long-term attractive yields, combined with our industry leading utilization and low, long-term funding costs, resulted in an ROE of 21.2% in the fourth quarter.
- We completed the divestiture of our non-container assets with the sale of our rail business, which closed on December 29, 2020. Combined with the sale of our logistics business in August, CAI is now 100% focused on its container leasing business.
- We are actively returning capital to shareholders, increasing our quarterly dividend 20% from $0.25 to $0.30 per share.
- We have repurchased 3.6% of our common shares since the beginning of the fourth quarter of 2020. In addition, the Board has expanded our share repurchase program by an additional two million shares.
“Our singular focus is to continue to prudently allocate capital to drive shareholder value.”
Mr. Page continued, “The global container market has been remarkable the past several quarters, demand has been unprecedented and container prices have risen to record levels. We expect container demand to remain strong throughout 2021. We have a robust forward order book and have commitments for the delivery of $340 million of new containers through early Q3 of 2021, and expect to secure additional commitments as we work with several customers to provide financing for their container production. We continue to focus on ultra-long life-cycle leases and because of the historically high container prices, are limiting our speculative production commitments.
“The Company continues to maintain its exceptional industry leading utilization. Average utilization in the fourth quarter was 99.3%. Utilization at the quarter end was 99.6%, and is currently 99.7%. Our continuing strong performance in utilization reflects the long-term nature of our contracts, our focus on tight contract redelivery terms and ongoing fleet management; all of which underscore the long-term committed nature of our cash flow.
“Our average cash interest rate at the end of the fourth quarter was 2.25%, and 83% of the Company’s debt is now fixed rate. CAI has a record level of liquidity which will allow us to take advantage of favorable container investment opportunities as well as continue to return capital to shareholders.
“We expect the record results we achieved in the fourth quarter to set the stage for a strong 2021. However, we anticipate that net income may be slightly lower in the first quarter as a result of two fewer billing days as compared to the fourth quarter and a probable reduction in container sales as result of a lack of available inventory due to our high utilization levels.”
Mr. Page concluded, “We are very optimistic about 2021. We enter the year with strong cash flows supported by long-term leases, virtually no off-lease equipment, and low, long-term fixed rate financing costs. As a result of these favorable factors, combined with our forward order book, we expect to continue to deliver exceptional ROE’s for our shareholders.”
Additional information on CAI's results, as well as comments on market trends, is available in a presentation posted today on the "Investors" section of CAI's website, www.capps.com.
| CAI International, Inc. | |||||||
| Consolidated Balance Sheets | |||||||
| (In thousands, except share information) | |||||||
| (UNAUDITED) | |||||||
| December 31, | December 31, | ||||||
2020 |
2019 |
||||||
| Assets | |||||||
| Current assets | |||||||
| Cash | $ |
26,691 |
|
$ |
19,870 |
|
|
| Cash held by variable interest entities |
|
26,856 |
|
|
26,594 |
|
|
| Current portion of restricted cash |
|
600 |
|
|
- |
|
|
| Accounts receivable, net of allowance for doubtful accounts of $393 and $7,671 | |||||||
| at December 31, 2020 and 2019, respectively |
|
65,310 |
|
|
72,984 |
|
|
| Current portion of net investment in finance leases |
|
78,992 |
|
|
71,228 |
|
|
| Prepaid expenses and other current assets |
|
16,213 |
|
|
7,849 |
|
|
| Assets held for sale |
|
- |
|
|
322,294 |
|
|
| Total current assets |
|
214,662 |
|
|
520,819 |
|
|
| Restricted cash |
|
12,355 |
|
|
26,775 |
|
|
| Rental equipment, net of accumulated depreciation of $669,360 and $588,815 | |||||||
| at December 31, 2020 and 2019, respectively |
|
1,781,321 |
|
|
1,820,735 |
|
|
| Net investment in finance leases |
|
550,573 |
|
|
495,488 |
|
|
| Financing receivable |
|
48,888 |
|
|
30,693 |
|
|
| Other non-current assets |
|
4,833 |
|
|
7,255 |
|
|
| Total assets | $ |
2,612,632 |
|
$ |
2,901,765 |
|
|
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ |
3,666 |
|
$ |
4,534 |
|
|
| Accrued expenses and other current liabilities |
|
29,598 |
|
|
25,206 |
|
|
| Unearned revenue |
|
3,029 |
|
|
6,405 |
|
|
| Current portion of debt |
|
183,448 |
|
|
218,094 |
|
|
| Rental equipment payable |
|
100,509 |
|
|
25,137 |
|
|
| Liabilities held for sale |
|
- |
|
|
8,752 |
|
|
| Total current liabilities |
|
320,250 |
|
|
288,128 |
|
|
| Debt |
|
1,562,283 |
|
|
1,880,122 |
|
|
| Derivative instruments |
|
80 |
|
|
- |
|
|
| Deferred income tax liability |
|
24,442 |
|
|
35,376 |
|
|
| Other non-current liabilities |
|
3,337 |
|
|
4,899 |
|
|
| Total liabilities |
|
1,910,392 |
|
|
2,208,525 |
|
|
| Stockholders' equity | |||||||
| Preferred stock, par value $.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 $.0001 per share; authorized 84,000,000 shares; issued and outstanding | |||||||
| 17,562,779 and 17,479,127 shares at December 31, 2020 and 2019, respectively |
|
2 |
|
|
2 |
|
|
| Additional paid-in capital |
|
100,795 |
|
|
102,709 |
|
|
| Accumulated other comprehensive loss |
|
(5,743 |
) |
|
(6,630 |
) |
|
| Retained earnings |
|
503,321 |
|
|
493,294 |
|
|
| Total stockholders' equity |
|
702,240 |
|
|
693,240 |
|
|
| Total liabilities and stockholders' equity | $ |
2,612,632 |
|
$ |
2,901,765 |
|
|
| CAI International, Inc. | |||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| (UNAUDITED) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
| Revenue | |||||||||||||||
| Container lease revenue | $ |
81,567 |
|
$ |
73,521 |
|
$ |
294,013 |
|
$ |
298,853 |
|
|||
| Operating expenses | |||||||||||||||
| Depreciation of rental equipment |
|
27,791 |
|
|
27,536 |
|
|
109,856 |
|
|
111,917 |
|
|||
| Storage, handling and other expenses |
|
3,453 |
|
|
4,902 |
|
|
17,758 |
|
|
17,533 |
|
|||
| Gain on sale of rental equipment |
|
(4,350 |
) |
|
(1,555 |
) |
|
(10,204 |
) |
|
(4,402 |
) |
|||
| Administrative expenses |
|
7,982 |
|
|
10,664 |
|
|
27,312 |
|
|
34,188 |
|
|||
| Total operating expenses |
|
34,876 |
|
|
41,547 |
|
|
144,722 |
|
|
159,236 |
|
|||
| Operating income |
|
46,691 |
|
|
31,974 |
|
|
149,291 |
|
|
139,617 |
|
|||
| Other expenses | |||||||||||||||
| Net interest expense |
|
12,169 |
|
|
19,113 |
|
|
61,565 |
|
|
79,174 |
|
|||
| Write-off of debt issuance costs |
|
2,297 |
|
|
- |
|
|
6,135 |
|
|
- |
|
|||
| Other (income) expense |
|
(494 |
) |
|
(224 |
) |
|
(651 |
) |
|
313 |
|
|||
| Total other expenses |
|
13,972 |
|
|
18,889 |
|
|
67,049 |
|
|
79,487 |
|
|||
| Income before income taxes |
|
32,719 |
|
|
13,085 |
|
|
82,242 |
|
|
60,130 |
|
|||
| Income tax expense |
|
(2,000 |
) |
|
288 |
|
|
1,800 |
|
|
4,783 |
|
|||
| Income from continuing operations |
|
34,719 |
|
|
12,797 |
|
|
80,442 |
|
|
55,347 |
|
|||
| Loss from discontinued operations, net of income taxes |
|
(20,473 |
) |
|
(75 |
) |
|
(52,709 |
) |
|
(24,336 |
) |
|||
| Net income |
|
14,246 |
|
|
12,722 |
|
|
27,733 |
|
|
31,011 |
|
|||
| Preferred stock dividends |
|
2,208 |
|
|
2,208 |
|
|
8,829 |
|
|
8,829 |
|
|||
| Net income attributable to CAI common stockholders | $ |
12,038 |
|
$ |
10,514 |
|
$ |
18,904 |
|
$ |
22,182 |
|
|||
| Amounts attributable to CAI common stockholders | |||||||||||||||
| Net income from continuing operations | $ |
32,511 |
|
$ |
10,589 |
|
$ |
71,613 |
|
$ |
46,518 |
|
|||
| Net loss from discontinued operations |
|
(20,473 |
) |
|
(75 |
) |
|
(52,709 |
) |
|
(24,336 |
) |
|||
| Net income attributable to CAI common stockholders | $ |
12,038 |
|
$ |
10,514 |
|
$ |
18,904 |
|
$ |
22,182 |
|
|||
| Net income (loss) per share attributable to | |||||||||||||||
| CAI common stockholders | |||||||||||||||
| Basic | |||||||||||||||
| Continuing operations | $ |
1.84 |
|
$ |
0.61 |
|
$ |
4.08 |
|
$ |
2.62 |
|
|||
| Discontinued operations |
|
(1.16 |
) |
|
(0.01 |
) |
|
(3.00 |
) |
|
(1.37 |
) |
|||
| Total basic | $ |
0.68 |
|
$ |
0.60 |
|
$ |
1.08 |
|
$ |
1.25 |
|
|||
| Diluted | |||||||||||||||
| Continuing operations | $ |
1.81 |
|
$ |
0.60 |
|
$ |
4.03 |
|
$ |
2.58 |
|
|||
| Discontinued operations |
|
(1.14 |
) |
|
(0.00 |
) |
|
(2.97 |
) |
|
(1.35 |
) |
|||
| Total diluted | $ |
0.67 |
|
$ |
0.60 |
|
$ |
1.06 |
|
$ |
1.23 |
|
|||
| Weighted average shares outstanding | |||||||||||||||
| Basic |
|
17,711 |
|
|
17,379 |
|
|
17,546 |
|
|
17,731 |
|
|||
| Diluted |
|
17,949 |
|
|
17,667 |
|
|
17,763 |
|
|
18,011 |
|
|||
| CAI International, Inc. | |||||||
| Consolidated Statements of Cash Flows | |||||||
| (In thousands, except per share data) | |||||||
| (UNAUDITED) | |||||||
| Year Ended December 31, |
|||||||
2020 |
2019 |
||||||
| Cash flows from operating activities | |||||||
| Net income | $ |
27,733 |
|
$ |
31,011 |
|
|
| Loss from discontinued operations, net of income taxes |
|
(52,709 |
) |
|
(24,336 |
) |
|
| Income from continuing operations |
|
80,442 |
|
|
55,347 |
|
|
| Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||||||
| Depreciation |
|
110,650 |
|
|
112,127 |
|
|
| Amortization and write-off of debt issuance costs |
|
9,440 |
|
|
3,921 |
|
|
| Stock-based compensation expense |
|
1,775 |
|
|
2,582 |
|
|
| Unrealized (gain) loss on foreign exchange |
|
(790 |
) |
|
16 |
|
|
| Gain on sale of rental equipment |
|
(10,204 |
) |
|
(4,402 |
) |
|
| Deferred income taxes |
|
1,369 |
|
|
4,208 |
|
|
| Bad debt (recovery) expense |
|
(6,262 |
) |
|
5,613 |
|
|
| Changes in other operating assets and liabilities: | |||||||
Accounts receivable |
|
10,999 |
|
|
3,065 |
|
|
Prepaid expenses and other assets |
|
(1,781 |
) |
|
(2,067 |
) |
|
Net investment in finance leases |
|
74,444 |
|
|
65,688 |
|
|
Accounts payable, accrued expenses and other liabilities |
|
348 |
|
|
6,633 |
|
|
Unearned revenue |
|
(540 |
) |
|
5 |
|
|
| Net cash provided by operating activities of continuing operations |
|
269,890 |
|
|
252,736 |
|
|
| Net cash provided by operating activities of discontinued operations |
|
7,126 |
|
|
1,261 |
|
|
| Net cash provided by operating activities |
|
277,016 |
|
|
253,997 |
|
|
| Cash flows from investing activities | |||||||
| Purchase of rental equipment |
|
(218,985 |
) |
|
(316,857 |
) |
|
| Purchase of financing receivable |
|
(30,846 |
) |
|
(37,139 |
) |
|
| Proceeds from sale of rental equipment |
|
101,297 |
|
|
81,692 |
|
|
| Receipt of principal payments from financing receivable |
|
6,368 |
|
|
2,720 |
|
|
| Purchase of furniture, fixtures and equipment |
|
(465 |
) |
|
(1,954 |
) |
|
| Net cash used in investing activities of continuing operations |
|
(142,631 |
) |
|
(271,538 |
) |
|
| Net cash provided by investing activities of discontinued operations |
|
108,663 |
|
|
123,093 |
|
|
| Net cash provided by (used in) investing activities |
|
(33,968 |
) |
|
(148,445 |
) |
|
| Cash flows from financing activities | |||||||
| Proceeds from debt |
|
1,186,537 |
|
|
705,045 |
|
|
| Principal payments on debt |
|
(1,349,918 |
) |
|
(631,875 |
) |
|
| Debt issuance costs |
|
(9,077 |
) |
|
(839 |
) |
|
| Proceeds from issuance of common stock |
|
163 |
|
|
- |
|
|
| Repurchase of common stock |
|
(7,946 |
) |
|
(34,118 |
) |
|
| Dividends paid to common stockholders |
|
(8,877 |
) |
|
- |
|
|
| Dividends paid to preferred stockholders |
|
(8,829 |
) |
|
(8,829 |
) |
|
| Exercise of stock options |
|
4,000 |
|
|
1,285 |
|
|
| Net cash (used in) provided by financing activities of continuing operations |
|
(193,947 |
) |
|
30,669 |
|
|
| Net cash used in financing activities of discontinued operations |
|
(55,935 |
) |
|
(139,148 |
) |
|
| Net cash used in financing activities |
|
(249,882 |
) |
|
(108,479 |
) |
|
| Effect on cash of foreign currency translation |
|
97 |
|
|
183 |
|
|
| Net decrease in cash and restricted cash |
|
(6,737 |
) |
|
(2,744 |
) |
|
| Cash and restricted cash at beginning of the period |
|
73,239 |
|
|
75,983 |
|
|
| Cash and restricted cash at end of the period | $ |
66,502 |
|
$ |
73,239 |
|
|
| CAI International, Inc. | ||||||||||||
| Fleet Data | ||||||||||||
| (UNAUDITED) | ||||||||||||
| As of December 31, | ||||||||||||
2020 |
2019 |
|||||||||||
| Owned container fleet in TEUs | 1,688,351 |
|
1,611,527 |
|
||||||||
| Managed container fleet in TEUs | 56,298 |
|
69,650 |
|
||||||||
| Total container fleet in TEUs | 1,744,649 |
|
1,681,177 |
|
||||||||
| Owned container fleet in CEUs | 1,727,202 |
|
1,642,118 |
|
||||||||
| Managed container fleet in CEUs | 71,318 |
|
85,698 |
|
||||||||
| Total container fleet in CEUs | 1,798,520 |
|
1,727,816 |
|
||||||||
| Three Months Ended | Year Ended | |||||||||||
| December 31, | December 31, | |||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||
| Average Utilization | ||||||||||||
| Container fleet utilization in CEUs | 99.3 |
% |
98.4 |
% |
98.5 |
% |
98.6 |
% |
||||
| Owned container fleet utilization in CEUs | 99.3 |
% |
98.5 |
% |
98.5 |
% |
98.7 |
% |
||||
| As of December 31, | ||||||||||||
2020 |
2019 |
|||||||||||
| Period Ending Utilization | ||||||||||||
| Container fleet utilization in CEUs | 99.6 |
% |
98.3 |
% |
||||||||
| Owned container fleet utilization in CEUs | 99.6 |
% |
98.4 |
% |
||||||||
| Utilization of containers is computed by dividing the total units on lease in CEUs (cost equivalent units), by the total units in our fleet in CEUs. | ||||||||||||
| The total container fleet excludes new units not yet leased and off-hire units designated for sale. | ||||||||||||
| CEU is a ratio used to convert the actual number of containers in our fleet to a figure based on the relative purchase prices of our | ||||||||||||
| various equipment types to that of a standard 20 foot dry van container. For example, the CEU ratio for a standard 40 foot dry van | ||||||||||||
| container is 1.6, and a 40 foot high cube container is 1.7. | ||||||||||||
| CAI International, Inc. | |||||||||||||
| Reconciliation of GAAP Amounts to Non-GAAP Amounts | |||||||||||||
| (In thousands, except per share data) | |||||||||||||
| (UNAUDITED) | |||||||||||||
| Three Months Ended | |||||||||||||
| December 31, | September 30, | December 31, | |||||||||||
2020 |
2020 |
2019 |
|||||||||||
| Amounts attributable to CAI common stockholders | |||||||||||||
| Net income from continuing operations | $ |
32,511 |
|
$ |
15,295 |
|
$ |
10,589 |
|
||||
| Write-off of debt issuance costs |
|
2,297 |
|
|
3,406 |
|
|
- |
|
||||
| Revaluation of deferred tax liability as a result of a change in future state | |||||||||||||
| apportionment caused by the sale of the logistics and rail businesses |
|
(3,186 |
) |
|
- |
|
|
- |
|
||||
| Adjusted net income from continuing operations | $ |
31,622 |
|
$ |
18,701 |
|
$ |
10,589 |
|
||||
| Diluted net income per share from continuing operations | $ |
1.81 |
|
$ |
0.86 |
|
$ |
0.60 |
|
||||
| Diluted adjusted net income per share from continuing operations | $ |
1.76 |
|
$ |
1.06 |
|
$ |
0.60 |
|
||||
| Weighted average diluted common shares outstanding |
|
17,949 |
|
|
17,706 |
|
|
17,667 |
|
||||
| CAI International, Inc. | |||||||||||||
| Calculation of Return on Equity | |||||||||||||
| (In thousands) | |||||||||||||
| (UNAUDITED) | |||||||||||||
| Three Months Ended | |||||||||||||
| December 31, | September 30, | December 31, | |||||||||||
2020 |
2020 |
2019 |
|||||||||||
| Adjusted net income from continuing operations | $ |
31,622 |
|
$ |
18,701 |
|
$ |
10,589 |
|
||||
| Annualized adjusted net income from continuing operations |
|
126,488 |
|
|
74,804 |
|
|
42,356 |
|
||||
| Average shareholders' equity 1 | $ |
596,770 |
|
$ |
589,384 |
|
$ |
583,315 |
|
||||
| Return on equity |
|
21.2 |
% |
|
12.7 |
% |
|
7.3 |
% |
||||
| 1 Average shareholders' equity was calculated using the quarter's beginning and ending shareholders' equity, excluding preferred stock. | |||||||||||||
Conference Call
A conference call to discuss the financial results for the fourth quarter of 2020 will be held on Tuesday, February 16, 2021 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” section of CAI’s website, www.capps.com, by selecting “Q4 2020 Earnings Conference Call.” A webcast replay will be available for 30 days on the “Investors” section of our website.
Earnings Presentation
A presentation summarizing our fourth quarter 2020 results is available on the “Investors” section of our website, www.capps.com.
Use of Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, and includes net income and earnings per share adjusted to reflect the impact of a non-recurring write-off of debt issuance costs and a non-recurring revaluation of deferred tax liability. This press release also refers to return on equity, which is calculated using the non-GAAP financial measure, adjusted net income. These measures are not in accordance with, or an alternative for, generally accepted accounting principles, or GAAP, and may be different from non-GAAP financial measures used by other companies. We believe the presentation of non-GAAP financial measures provides useful information to management and investors regarding various financial and business trends relating to our financial condition and results of operations, and that when GAAP financial measures are viewed in conjunction with non-GAAP financial measures, investors are provided with a more meaningful understanding of our ongoing operating performance. Management utilizes return on equity in evaluating how much profit the Company generates on the shareholders’ equity in the Company and believes it is useful for comparing the profitability of companies in the same industry. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for GAAP financial measures. To the extent this release contains historical non-GAAP financial measures, we have also provided a reconciliation to the corresponding GAAP financial measures for comparative purposes.
About CAI International, Inc.
CAI is one of the world’s leading transportation finance companies. As of December 31, 2020, CAI operated a worldwide fleet of approximately 1.8 million CEUs of containers. CAI operates through 14 offices located in 12 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: management’s business outlook for the container leasing business, management’s decision to divest of CAI’s non-core businesses and management's outlook for growth of CAI’s 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, as amended, 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, 2019, 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.