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CAI International, Inc (CAP) Shows Gains in Fourth Quarter Revenue

CAI International, Inc. (CAP), headquartered in San Francisco, California, is an intermodal freight container leasing and management company. Intermodal freight containers are large, standardized steel boxes, which the company leases primarily to international steamship companies. They are used to transport cargo by a number of means, including ship, truck and rail. A portion of the container fleet is owned by CAI, with the balance being owned by third parties, which the company manages on their behalf.

In February, CAI announced it had completed an agreement to increase the commitment amount on its existing senior secured credit facility with a consortium of banks. The amended credit agreement increases the comment amount of CAI’s revolving line of credit from $200M to $265M. The maturity date of September 25, 2012 and all other terms of the prior agreement signed on September 25, 2007 remained unchanged.

The company reported that its net income for the fourth quarter of 2007 increased 16.9% to $6.1M compared to $5.2M of the same quarter in the previous year. CAI’s revenue increased 1.4% to $18.9M and container rental revenue increased 26.2% to 11.8M. Total revenue for the year ended December 31, 2007 increased by 6.8% to $4.2M. According to Masaaki (John) Nishibori, chief executive officer, overall revenue in the fourth quarter remained largely unchanged due to fewer containers being sold to container investors. Although there was interest from investors in new container investments, the company decided to retain some investment in their owned fleet of containers.

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