CAI International, Inc. Reports Results for the Second Quarter of 2009

Net income in the second quarter of 2009 was $3.3 million, a decrease of $3.0 million, or 47.6%, compared with net income of $6.3 million in the second quarter of 2008. Fully diluted earnings per share in the second quarter of 2009 were $0.19 with 17.9 million average shares outstanding, compared to fully diluted earnings per share of $0.37 with 17.1 million average shares outstanding during the second quarter of 2008.

Masaaki (John) Nishibori, CEO of CAI, commented, "We are satisfied with our results for the second quarter of 2009. Our company continues to be solidly profitable during a period of time when world economies and world trade have been in decline. We remain focused on executing our core business of leasing and managing containers for investors. I believe CAI is well positioned to continue managing through this downturn and will benefit from the coming recovery in world trade and economic growth.

"Our net income this quarter declined by 47.6% as compared to the second quarter of 2008. The decrease in profitability was largely due to lower trading income from container portfolio sales, lower management fee income as a result of lower investor portfolio profitability and higher storage costs due to the decline in utilization in our owned fleet. We continued to generate excess cash flow and repaid $15 million of outstanding debt on our revolving credit facility during the quarter. As of June 30, 2009 we had $115 million available under the line of credit and approximately $14 million of cash on hand."

He continued, "During the second quarter total fleet utilization declined to 81.2% as a result of redeliveries of containers from the major shipping lines. Utilization was also affected by our decision to accept early redelivery of some containers from lessees with whom we had credit concerns. However, during the second quarter the rate of decline in utilization moderated as compared to the first quarter and we believe utilization is stabilizing. Demand for leasing of equipment in Asia, including China, has steadily improved during the second quarter and in certain locations in Asia and Europe inventories are in decline. The improving demand for containers has continued early into the third quarter.

"Although we are pleased to see some improvements in demand, the incremental demands are moderate and a more substantial recovery will be dependent on a return to economic expansion in the United States and Europe. There are no significant volumes of container equipment being ordered or manufactured, and thus we believe the container leasing industry will be an early beneficiary of the continued improvement in demand for containerized cargo. Most of our offhire inventory is in Asia and thus is well situated for pick up from our customers as demand for containers increases."

CAI International, Inc.
Consolidated Balance Sheets
(In thousands, except share information)
(UNAUDITED)
                                                                    June 30,           December 31,
ASSETS                                                              2009               2008
Cash                                                                $    13,855        $    28,535
Accounts receivable (owned fleet), net of allowance for doubtful         14,749             16,224
accounts of $756 and $1,044 at June 30, 2009 and December 31,
2008, respectively
Accounts receivable (managed fleet)                                      22,895             24,683
Current portion of direct finance leases                                 5,412              6,108
Prepaid expenses                                                         2,195              2,954
Deferred tax assets                                                      2,704              1,924
Other current assets                                                     1,805              563
Total current assets                                                     63,615             80,991
Container rental equipment, net of accumulated depreciation of           300,986            310,397
$84,680 and $86,936 at June 30, 2009 and December 31, 2008,
respectively
Net investment in direct finance leases                                  10,644             14,003
Furniture, fixtures and equipment, net of accumulated depreciation       545                629
of $827 and $722 at June 30, 2009 and December 31, 2008,
respectively
Intangible assets, net of accumulated amortization of $3,891 and         5,806              6,608
$3,081 at June 30, 2009 and December 31, 2008, respectively
Total assets                                                        $    381,596       $    412,628
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable                                                    $    8,302         $    4,682
Accrued expenses and other current liabilities                           1,195              3,747
Due to container investors                                               16,068             23,847
Unearned revenue                                                         4,821              4,542
Current portion of capital lease obligation                              3,090              4,514
Rental equipment payable                                                 5,067              3,905
Total current liabilities                                                38,543             45,237
Revolving credit facility                                                175,200            208,200
Deferred income tax liability                                            26,053             25,348
Capital lease obligation                                                 17,870             18,070
Income taxes payable                                                     2,026              1,983
Total liabilities                                                        259,692            298,838
Stockholders' equity:
Common stock, par value $.0001 per share; authorized 84,000,000          2                  2
shares; issued and outstanding, 17,917,417 shares and 17,920,778
shares at June 30, 2009, and December 31, 2008, respectively
Additional paid-in capital                                               103,150            102,706
Accumulated other comprehensive loss                                     (1,640  )          (2,022  )
Retained earnings                                                        20,392             13,104
Total stockholders' equity                                               121,904            113,790
Total liabilities and stockholders' equity                          $    381,596       $    412,628

CAI International, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(UNAUDITED)
                                                                 Three Months Ended June 30,     Six Months Ended June 30,
                                                                 2009            2008            2009            2008
Revenue:
             Container rental revenue                            $   13,457      $   13,822      $   27,576      $   25,268
             Management fee revenue                                  2,101           3,030           4,594           5,940
             Gain on sale of container portfolios                    497             3,295           753             6,217
             Finance lease income                                    606             495             1,314           868
                                     Total revenue                   16,661          20,642          34,237          38,293
Operating expenses:
             Depreciation of container rental equipment              4,222           3,720           8,593           6,732
             Amortization of intangible assets                       400             389             808             701
             Impairment of container rental equipment                25              107             61              202
             Gain on disposition of used container equipment         (611   )        (1,472 )        (1,401 )        (2,294 )
             Equipment rental expense                                -               -               -               20
             Storage, handling and other expenses                    2,426           1,350           4,136           2,224
             Marketing, general and administrative expense           4,777           5,168           9,692           9,616
             Gain on foreign exchange                                (83    )        (51    )        (3     )        (95    )
                                     Total operating expenses        11,156          9,211           21,886          17,106
Operating income                                                     5,505           11,431          12,351          21,187
Interest expense                                                     1,050           2,080           2,352           4,103
Interest income                                                      (3     )        (123   )        (7     )        (170   )
                                     Net interest expense            1,047           1,957           2,345           3,933
                                     Income before income taxes      4,458           9,474           10,006          17,254
Income tax expense                                                   1,125           3,210           2,718           5,701
Net income                                                       $   3,333       $   6,264       $   7,288       $   11,553
Net income per share:
                                     Basic                       $   0.19        $   0.37        $   0.41        $   0.68
                                     Diluted                     $   0.19        $   0.37        $   0.41        $   0.67
Weighted average shares outstanding:
                                     Basic                           17,901          17,113          17,899          17,111
                                     Diluted                         17,901          17,122          17,899          17,118

                      As of June 30,  As of June 30,
                      2009            2008
                      (unaudited)
Managed fleet in TEUs 533,145         530,945
Owned fleet in TEUs   235,548         260,519
Total                 768,693         791,464

Conference Call

A conference call to discuss financial results for the second quarter of 2009 will be held on Tuesday, August 4, 2009 at 5:00 p.m. EDT. The dial-in number for the teleconference is 1-888-542-1136; outside of the U.S., call 1-719-457-2650. The call may be accessed live over the internet (listen only) under the "Investors" tab of CAI's website, www.caiintl.com, by selecting "Q2 2009 Earnings Conference Call." A webcast replay will be available for 30 days on the "Investors" tab of our website.

About CAI International, Inc.

CAI is one of the world's leading managers and lessors of intermodal freight containers. As of June 30, 2009, the company operated a worldwide fleet of 769,000 TEU of containers through 13 offices located in 11 countries.

This press release contains forward-looking statements regarding future events and the future performance of CAI International, Inc. These statements 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 (including utilization rates) to differ materially from current expectations including, but not limited to, expected economic conditions, availability of credit on commercially favorable terms or at all, customer demand, container prices, lease rates, increased competition, volatility in exchange rates 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, 2008 and its interim reports on Form 10-Q and its 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.

SOURCE: CAI International, Inc.

CAI International, Inc. 
Victor Garcia, 415-788-0100 
Chief Financial Officer 
vgarcia@caiintl.com