CAI International Inc. (NYSE:CAI) Q2 2020 Earnings Conference Call - Final Transcript
Aug 06, 2020 • 05:00 pm ET
Thank you for standing by. This is the conference operator. Welcome to the CAI International 2Q 2020 Earnings Conference Call. [Operator Instructions] And the conference is being recorded. [Operator Instructions] I would now like to turn the conference over to David Morris, Vice President, Finance and Corporate Controller. Please go ahead.
Good afternoon, and thank you for joining us today. Certain statements made during this conference call may be forward-looking and are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and involve risks and uncertainties that could cause actual results to differ materially from our current expectations, including, but not limited to, economic conditions, expected results, customer demand, increased competition and others. We refer you to the documents that CAI International has filed with the Securities and Exchange Commission, including its annual report on Form 10-K, its quarterly reports filed on Form 10-Q and its reports on Form 8-K. These documents contain additional important factors that could cause actual results to differ from current expectations and from forward-looking statements contained in this conference call.
Finally, we remind you that the company's views, expected results, plans, outlook and strategies as detailed in this call might change subsequent to this discussion. If this happens, the company is under no obligation to modify or update any of the statements the company made during this discussion regarding its views, estimates, plans, outlook or strategies for the future. I will now turn the call over to our Interim President and Chief Executive Officer, Tim Page.
Good afternoon, and welcome to CAI's Second Quarter 2020 Earnings Conference Call. We are very pleased with our solid second quarter results. Net income from continuing operations attributable to CAI common stockholders was $13.7 million or $0.78 per fully diluted share, an increase of 15% as compared to Q1 2020 adjusted net income of $12 million. The quarter began with a great deal of uncertainty as we are in the depths of the COVID-19 global pandemic. As the quarter progressed, the global marine transportation markets began to stabilize. During the quarter, our customers took steps to tightly manage capacity, and they also benefited from low fuel prices. As a result, many of the major containing shipping lines have been profitable through these difficult times. In addition, a number of our customers received credit support from sovereign wealth funds as they are viewed as being strategically important to the global supply chain. Consequently, we did not experience any meaningful payment delays or credit issues during the quarter. Towards the end of the second quarter, we began to experience very strong demand for both new and depot containers. That demand has continued into the third quarter. Since mid-June, we have received customer commitments for long-term leases for approximately 70,000 TEU, which equates to about 115 million of new containers, all of which we expect to be picked up before the end of the third quarter.
Additionally, we have lease commitments for approximately 50,000 TEU