CAI International reported net income in the first quarter of 2013 totaling $16.1 million, an increase of 11 percent from $14.5 million in the same quarter of 2012.
Total quarterly revenue for the intermodal freight container lessor was an all-time high of $51 million, jumping 29 percent from $39.4 million in the first quarter of 2012. Container rental revenue in the first quarter was $46.6 million, an improvement of 44 percent compared to the same period last year and a 4 percent increase compared to the fourth quarter of 2012, representing the 12th consecutive quarter of record rental revenue. The increase in container rental revenue was mainly fueled by an increase in the average number of 20-foot-equivalent units of owned containers on lease, the company said.
During the quarter, CAI purchased two portfolios from its managed fleet and entered into a sale-leaseback transaction with a shipping customer for a total of approximately 66,000 TEUs, worth about $82 million of containers. The San Francisco-based company also acquired approximately 29,000 TEUs of new containers, valued at $72 million, during the quarter.
“Although utilization, as expected, decreased slightly in the first quarter, it has stabilized in recent weeks, and we remain optimistic about the overall utilization of our fleet for the remainder of 2013 as we are now approaching what has historically been the seasonally stronger part of the year,” said Victor Garcia, CEO of CAI, in a written statement.
“In terms of investment in new equipment, we still expect 2013 to be a year in which there will be ongoing demand from our customers, however, thus far, inquiries from customers for new container equipment have been slower than we had expected,” he continued. “The extent of the demand for new equipment is uncertain and will depend in part on the strength of overall trade growth and the level of equipment purchases by our customers. Secondary prices of containers remain strong, which we expect to continue through the remainder of the year.”