CAI International, Inc. (CAI) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $0.74 million, or $ 0.04 a share in the quarter, against a net loss of $12.63 million, or $0.62 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $1.70 million, or $0.09 a share compared with a net profit of $10.47 million, or $0.52 a share in the last year period.
Revenue during the quarter grew 17.63 percent to $77.27 million from $65.69 million in the previous year period. Operating margin for the quarter period stood at positive 16.23 percent as compared to a negative 3.96 percent for the previous year period.
Operating income for the quarter was $12.54 million, compared with an operating loss of $2.60 million in the previous year period.
Victor Garcia, president and chief executive officer of CAI, commented, "Our financial results for the quarter and year reflect the impact of the weak economic environment over the past several months. However, we have continued to see improvement in the underlying fundamental trends in the business. One of our primary objectives has been to reposition idle container equipment for sale or lease. As a result, a significant factor in this quarter's results is the $4.7 million loss on equipment sales and the incentives we have provided to reposition containers. These costs decreased during the latter half of the fourth quarter and we expect that trend to continue into 2017 as we have been increasing sale prices across the network and have a much-reduced level of inventory, particularly in low demand locations."
Operating cash flow declines
CAI International, Inc. has generated cash of $127.23 million from operating activities during the year, down 13.67 percent or $20.14 million, when compared with the last year.
The company has spent $179.57 million cash to meet investing activities during the year as against cash outgo of $305.25 million in the last year. It has incurred net capital expenditure of $184.51 million on net basis during the year, down 42.91 percent or $138.67 million from year ago.
Cash flow from financing activities was $46.60 million for the year, down 70.23 percent or $109.94 million, when compared with the last year.
Debt moves up marginally
CAI International, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,476.03 million as on Dec. 31, 2016, up 3.96 percent or $56.22 million from $1,419.81 million on Dec. 31, 2015. Total debt was 71.80 percent of total assets as on Dec. 31, 2016, compared with 71.47 percent on Dec. 31, 2015. Debt to equity ratio was at 3.23 as on Dec. 31, 2016, up from 3.08 as on Dec. 31, 2015.
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