CAI International Inc. said it is negotiating to sell off its remaining railcar fleet.
Should a sale be agreed upon, the transportation finance and logistics company expects it to be completed before the end of 2019. The company reclassified its railcar business as a discontinued operation in its financial statements and reclassified its railcars as assets held for sale.
President and CEO Victor Garcia said that despite improvements in returns and utilization of its railcars, the company believes that the capital allocated to the business can be better used elsewhere, including the potential repurchase of shares.
CAI International reported second-quarter net income attributable to common shareholders of $7.1 million, or 40 cents per share, down from $19.1 million, or 97 cents per share, in the year-ago period. The company reported a net loss from discontinued operations of $5.2 million in the quarter, reflecting the accounting impact of the reclassification of the railcar business.
Total revenues increased on a year-over-year basis to $105.6 million from $96.6 million, but total operating expenses and other expenses also increased. Operating expenses increased to $69.6 million from $60.1 million, while other expenses increased to $20.1 million from $15.0 million.