Entering text into the input field will update the search result below

CAI International, Inc. (CAI) CEO Victor Garcia on Q4 2019 Results - Earnings Call Transcript

SA Transcripts profile picture
SA Transcripts

CAI International, Inc. (CAI) Q4 2019 Earnings Conference Call March 5, 2020 5:00 PM ET

Company Participants

Timothy Page - Chief Financial Officer

Victor Garcia - President & Chief Executive Officer

Conference Call Participants

Brian Hogan - William Blair

Michael Webber - Webber Research


Ladies and gentlemen, thank you for standing by and welcome to the CAI 2019 Q4 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

I would now like to hand the conference over to Timothy Page, Chief Financial Officer. Thank you. Please go ahead, sir.

Timothy Page

Good afternoon. 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 other strategies for the

Recommended For You

Comments (7)

Byron Clarke profile picture
Bad debt is probably the biggest risk to the container leasing business model. Not great that we’re already seeing a bad debt rumbling in the 4th quarter.

I wish they had addressed whether CAI can repurchase shares in the market while they are in this strategic review process. If not and there are no containers to invest in, their capital allocations decisions are basically limited to repaying debt at 3-4%.

On the other hand if so, they will be very well set up to take big market share when the market provides acceptable ROE options again.

Disregarding the ‘pop’ that could come from a transaction announcement, TGH at $7.50 looks like a better option than CAI at $22.50.

On the other hand, the potential deal announcement could get a quicker return to CAI, but with a more muted upside potential.
Seven Corners Capital Management profile picture
I worked as a lawyer on multiple of CAI's ABS deals during the last decade. One time the CEO (Garcia) screamed at me on a conf call [which call my clients were also on (bankers for the deal)] for something I had literally nothing to do with. True story. Wonderful guy, Victor is. Be careful trusting anything they say about "strategic alternatives" - often these exercises are code for "SOS, let's run anything we can think of up the flagpole to try to prop up the stock so we can exercise our options and dump before reality sets in".

BTW, still a GBX fan, Byron?
Byron Clarke profile picture
Yup. Railcars and containers aren't going anywhere.
Seven Corners Capital Management profile picture
That's the GBX and CAI bull case? Railcars & containers "aren't going anywhere"? OK, Byron, good luck with that one! LOL. Victor and Mr Furman thank shareholders like you for being passive sheep.
To report an error in this transcript, .Contact us to add your company to our coverage or use transcripts in your business. Learn more about Seeking Alpha transcripts here. Your feedback matters to us!


SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on MIUFY

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.