Investor Presentation. April 26, 2018

Transcription

1 Investor Presentation April 26, 2018

2 Safe Harbor Statement This presentation contains forward-looking statements including; but not limited to: statements regarding our future financial performance; our plans for capital investment; our business; operations and growth strategy; container and railcar prices; utilization trends; prospects and our ability to purchase and sell containers and/or rail assets at favorable prices. All statements contained in this presentation other than statements of historical fact are forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties which could include; but are not limited to: utilization rates; expected economic conditions; expected growth of international trade; availability of credit on commercially favorable terms or at all; customer demand; container investment levels; container prices; lease rates; increased competition; volatility in exchange rates; growth in world trade and world container trade; our ability to convert letters of intent with its customers to binding contracts; potential to sell our securities to the public and other factors described in the Risk Factors section of our periodic reports filed with the Securities and Exchange Commission. Actual events or results may differ materially from those discussed in the forward-looking statements as a result of these and other factors. These forward-looking statements reflect our view only as of the date of this presentation. Except as required by law; we undertake no obligation to update any forwardlooking statements. 2

3 CAI - At a Glance Founded in 1989 Leading global transportation equipment finance company and the only container leasing company with in-house US and global logistics capabilities Global Container Leasing $1.9 billion 1.3 million Book Value Assets (1) CEU (1) Railcar Leasing $450 million 7,358 Assets (1) Railcars (1) Logistics $87 million ~ 150 Q Annualized Run-Rate Revenue Customers CAI Book Value (2) Book Value $28.44 CAGR 15.1% (1) CAI owned revenue assets (2) Book value available to common shareholders 3

4 Q Financial Highlights Q1 Net Income = $17.1 million record Q1 level Record Lease Revenue - $74 million Record Total Revenue - $95 million $0.83 EPS $28.44 Book Value Per Share 15.1% 10yr CAGR Raised $38 million of preferred equity during Q1 to provide capital for further growth and provide flexibility to enhance shareholder returns Strong container market continues to drive growth and profitability % - CEU utilization as of 3/31/ $141 million Q1 investment in new containers - Purchase commitments for ~$195 million additional investment - Q1 lease-outs average lease tenor ~6yrs average asset yield ~12% (1) - Forward customer order bookings of ~$175 million for Q2 delivery - Total 2018 lease-outs + committed customer bookings ~2x 2017 level at this time LY Gaining traction in an improving rail market Leased out 398 new cars and 46 used cars in Q1 Have commitments for leases for an additional 340 new and 476 used cars for delivery to customers throughout Q2 (1) Long-term operating leases: asset yield = first year revenue divided by asset cost 4

5 Container Leasing CAI is well positioned among container leasing peers to take advantage of the ongoing positive market dynamics Industry Update - Positive outlook for global trade growth. - Strong customer demand for new containers - Utilization remains at historically high levels and is expected to remain so - Container prices remain stable $2,180 for a 20ft Std Dry container - Prices for used equipment sales continue to increase due to stable container prices and high utilization rates across the industry - Per diem rates are expected to remain at levels that provide attractive returns (3) (1)(2) (1) Container cost data CAI internal company records (2) Chinese Steel Bloomberg (3) Average Quarterly utilization CAI, TRTN and TGH company filings 5

6 CAI Owned Fleet Off Lease TEU Monthly storage costs have decreased 93% since March 16 - CEU utilization is currently 99.3% as compared to 93.2% as of quarter-end March 2016 we expect this high level of utilization to continue - With this high level of utilization, incremental customer demand must be satisfied with new factory equipment lease-outs 6

7 CAI Disposition of Used Containers Prices for used containers continue to increase - Historically high utilization - Limited turn-in by customers of older containers - Strong global demand for used containers (1) 7

8 CAI Total Fleet Depot Lease-Outs vs Turn-In Activity Total Q1 lease-outs + forward customer bookings for Q2 lease-outs ~2x level of lease-outs and commitments at this time in 2017 (1) (1) As of 04/22/2018 8

9 CAI Total Fleet Lease-outs - TEU Lease-outs vs Drop-off Activity New Depot Total LOT TIN Net ,375 46, , ,709 71, ,073 82, , ,679 79, ,470 75, , ,705 19, , , , ,908 42, , , , ,336 (70,681) , , , ,304 (1,226) ,020 89, ,499 86, ,270 Q1 '18 24,964 7,126 32,090 16,422 15,668 Q new factory TEU lease-outs and bookings are ahead of the pace set in 2017 which was a record year for new factory lease-outs

10 CAI Fleet Metrics Long Term Committed Cash Flow CAI Owned Fleet By Equipment Type CAI Owned On Lease Fleet By Lease Type 88% of CAI s container fleet leases are Long Term or Finance Leases Average remaining lease tenor for CAI s container fleet Long Term and Finance Leases is 42.4 months As of 03/31/

11 Disciplined Investment Approach CAI has consistently demonstrated a return focused investment strategy Allocate capital to the most attractive return opportunities Avoid investing when returns do not meet our target return thresholds 2018 investment level is on pace to exceed the record investment level set in 2017 $ millions 11

12 CAI Capitalization (1) (1) Demonstrated ability to access multiple debt markets Maintain disciplined investment and capital allocation strategy Raised $38 million preferred equity in Q with additional $4 million raised in April of 2018 Plan to significantly increase percentage of fixed rate debt in 2018 Q average interest rate all credit facilities = 3.41% Equity 26% Debt 74% % Fixed Rate 57% % Floating Rate 43% $ millions as of 3/31/2018 (1) Liquidation Value 12

13 Staggered Debt Maturities (1) 57% of Debt is fixed Average maturity is 39 months (1) $ millions (1) $512 (78%) of 2020 maturities are revolving credit facilities that are regularly refinanced and extended 13

14 Summary Leading global transportation equipment finance and logistics company Committed to diversification Types of business Container leasing Railcar leasing Asset-light logistics Types of revenue Rental Logistics services Fee-based Expanding customer base Geographies Predictable cash flows from leasing platform Liquidity availability supports investment 14