Keep Your Eyes on This Stock Alert: CAI International Inc (NYSE: CAI)

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On 18 April 2020, CAI International Inc (NYSE: CAI) changed 12.51% to recent value of $14.75. The stock transacted 113,403 shares during most recent day however it has an average volume of 114.26K shares. It spotted trading -50.12% off 52-week high price. On the other end, the stock has been noted 45.61% away from the low price over the last 52-weeks.

CAI International, Inc (CAI) recently stated results for the fourth quarter and full year of 2019.

Summary

  • Net income attributable to CAI ordinary stockholders for the fourth quarter of 2019 was $10.5M, or $0.60 per fully diluted share.
  • Net income from continuing operations attributable to CAI ordinary stockholders for the year ended December 31, 2019 was $42.2M, or $2.34 per fully diluted share.
  • Average utilization for CAI’s owned container fleet during the fourth quarter of 2019 was 98.5% contrast to 98.6% for the third quarter of 2019.
  • During the fourth quarter of 2019, CAI incurred a $5.2M pre-tax charge related to a reserve against a consumer receivable.
  • Container lease revenue for the year ended December 31, 2019 was $298.9M, a raise of 5% contrast to 2018.
  • Logistics revenue for the year ended December 31, 2019 was $117.7M, a raise of 6% contrast to 2018.
  • As before reported on December 16, 2019, CAI has been working with Center view Partners as its planned financial advisor to explore and evaluate planned alternatives for CAI to maximize stockholder value. That review is ongoing. There can be no assurance that a transaction or other action will result, or if a transaction is undertaken, its terms or timing.

Victor Garcia, President and Chief Executive Officer of CAI, commented, “During the fourth quarter, we continued to take planned steps to strengthen our business in light of recently’s challenged market conditions and other headwinds. We are focused on improving our performance by increasing utilization, disposing of low-yielding assets and reducing operating costs. As we work urgently to enhance near-term financial results, we are also evaluating the best path to maximize long-term shareholder value.”

CAI’s operating performance in the fourth quarter was supported by the strong utilization of its container fleet, with 98.5% average utilization of the Company’s owned fleet, contrast to 98.6% in the third quarter and current utilization of 98.3%. This minimal decrease in utilization reflects the Company’s commitment to long-dated operating and finance leases, and compares favorably to the typical increased turn-in of containers in the fourth quarter.

Container lease revenue in the fourth quarter was influenced by the extension of two large consumer operating lease contracts that converted into finance leases. While the lease extensions had no impact on cash flow, the GAAP accounting treatment resulted in a reduction in lease revenue.

During the fourth quarter, CAI reserved $5.2M against receivables from one of its shipping line consumers. The consumer has fallen behind on its regular payment schedule, but continues to operate and has made intermittent payments. CAI is proactively working with this consumer to implement a schedule to bring payments back in line with existing contracts.

CAI has a gross margin of 75.00% and an operating margin of 32.30% while its profit margin remained 5.30% for the last 12 months. Its earnings per share (EPS) expected to touch remained -37.20% for this year while earning per share for the next 5-years is expected to reach at 8.00%. The price moved ahead of 2.73% % from the mean of 20 days, -26.07% from mean of 50 days SMA and performed -35.72% from mean of 200 days price. Company’s performance for the week was -4.72%, – 20.61% for month and YTD performance remained -49.10%.

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