San Francisco, California-based CAI International Inc. (CAI) has reported a fourth-quarter loss of $12.6 million, compared to the profit in the same period a year earlier.
CAI aid it had a loss of 62 cents on a per-share basis. Earnings, adjusted for one-time gains and costs, came to 52 cents per share.
The transportation finance and logistics company eported revenue for the fourth quarter of 2015 of $65.7 million, an increase of $6.9 million or 12% compared to the fourth quarter of 2014.
Lease-related revenue for the fourth quarter of 2015 was $59.7 million, an increase of $0.9 million, or 1%, compared to the fourth quarter of 2014. Lease-related revenue for the full year increased 5% to $238.2 million.
Revenue from CAI’s railcar assets increased over the same period by $3.0 million to $5.7 million as a result of growth in the railcar fleet, whereas revenue from the container leasing business decreased by $1.1 million to $53.2 million, reflecting a reduction in utilization and lease rates over the period.
Victor Garcia, Chief Executive Officer of CAI commented, “During the fourth quarter we operated under difficult market conditions. Overall demand for containers was weak and we did not experience the traditional peak season between August and October. Demand was limited throughout the quarter, particularly around Asia and there has not been the increase in demand leading into the Lunar New Year holiday period that we have seen in the past few years. "
The firm has announced the acquisition of Challenger Overseas, LLC, a New Jersey based
Non-Vessel Operating Common Carrier (NVOCC) for $10.8 million, a portion of which is based on the future performance of Challenger.