CAI International, Inc. (CAP) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $5.42 million, or $ 0.28 a share in the quarter, against a net profit of $12.99 million, or $0.62 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $2.99 million, or $0.16 a share compared with $12.99 million or $0.62 a share, a year ago.
Revenue during the quarter grew 18.69 percent to $78.47 million from $66.12 million in the previous year period. Total expenses were 90.62 percent of quarterly revenues, up from 64.83 percent for the same period last year. That has resulted in a contraction of 2579 basis points in operating margin to 9.38 percent.
Operating income for the quarter was $7.36 million, compared with $23.26 million in the previous year period.
Victor Garcia, president and chief executive officer of CAI, commented, "Our financial results continue to reflect the challenging environment we faced during the quarter, including weak economic growth and low container sale prices. For the third quarter of 2016, we reported a net loss of $5.4 million, or $0.28 per fully diluted share. The loss is primarily attributable to $9.3 million of discrete charges incurred during the quarter, including $4.5 million related to the Hanjin bankruptcy and $3.4 million of additional depreciation related to a change in residual value."
Operating cash flow declines
CAI International, Inc. has generated cash of $93.87 million from operating activities during the nine month period, down 14.56 percent or $16 million, when compared with the last year period.
The company has spent $123.25 million cash to meet investing activities during the nine month period as against cash outgo of $241.50 million in the last year period. It has incurred net capital expenditure of $124.44 million on net basis during the nine month period, down 50.89 percent or $128.96 million from year ago period.
Cash flow from financing activities was $14.29 million for the nine month period, down 89.95 percent or $127.90 million, when compared with the last year period.
Cash and cash equivalents stood at $37.47 million as on Sep. 30, 2016, down 41.61 percent or $26.70 million from $64.17 million on Sep. 30, 2015.
Working capital remains negative
Working capital of CAI International, Inc. was negative $30.85 million on Sep. 30, 2016 compared with negative $36.82 million on Sep. 30, 2015. Current ratio was at 0.82 as on Sep. 30, 2016, up from 0.81 on Sep. 30, 2015.
Days sales outstanding went down to 72 days for the quarter compared with 79 days for the same period last year.
Debt moves up marginally
CAI International, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,443.03 million as on Sep. 30, 2016, up 2.06 percent or $29.07 million from $1,413.95 million on Sep. 30, 2015. Total debt was 71.19 percent of total assets as on Sep. 30, 2016, compared with 70.98 percent on Sep. 30, 2015. Debt to equity ratio was at 3.14 as on Sep. 30, 2016, up from 2.97 as on Sep. 30, 2015.
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