CAI International (CAP), an operator of equipment leasing, has posted a 20.58 percent fall in profit for the quarter ended Jun. 30, 2014. The company earned $13.45 million or $0.60 a share in the second-quarter compared with $16.93 million or $0.75 a share a year ago. Adjusted earnings per share came in at $0.63, when analysts expected $0.69.

Revenue during the second-quarter grew 4.39 percent to $55.31 million from $52.99 million in the last year period.

Gross margin expanded by 0 basis points over the previous year period to 100 percent. Total expenses as a percentage of revenues increased to 55.99 percent from 47.45 percent in the same period last year. That has resulted in contraction of 853 basis points in operating margins to 44.01 percent.

The company disclosed operating income of $24.34 million, compared with $27.84 million in the last year period.

Victor Garcia, CEO of CAI, commented, "We have seen a significant increase in demand for containers during the seasonally stronger second quarter. During the quarter we leased out 68,000 CEUs of equipment, 31,000 CEUs of which were newly manufactured, most of which occurred during the latter half of the quarter. Pricing during the quarter remained very competitive. We believe this aggressive pricing has hampered the pickup of off-lease depot equipment, with some customers choosing to redeliver older units and lease newly manufactured units at very attractive rates."

Cash Position

As on Jun. 30, 2014, the company's cash balance stood at $19.81 million, down 41 percent or $13.77 million from Jun. 30, 2013.

Working Capital

CAI International's working capital remained negative at $155.71 million on Jun. 30, 2014, compared with negative $12.94 million on Jun. 30, 2013. It registered a decrease in current ratio to 0.47 as at Jun. 30, 2014 from 0.90 on Jun. 30, 2013.

Debt Position

CAI International has witnessed an increase in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $1142.96 million, up 0.09 percent or $1.03 million, from Jun. 30, 2013.

The company's total debt was 65.41 percent of total assets as on Jun. 30, 2014, compared with 70.66 percent on Jun. 30, 2013. It has witnessed a decline in debt to equity ratio to 2.69 on Jun. 30, 2014 compared with 3 on Jun. 30, 2013.

Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has declined to 2.74 from 3.11 in the same period last year.

Shares of the company went down by 13 cents or 0.63 percent to close at $20.55 on Tuesday.