2013 ANNUAL REPORT Inc
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1950 Low-tech shipping—goods loaded by longshoremen and stevedores—dominated freight transportation until 1956. CAI International, Inc. 25 years of progress: CAI International, Inc. 2013 Looking back and CAI International, Inc. ANNUAL moving forward 2013 A N N U A L R E P O R T REPORT Steuart Tower, 1 Market Plaza Suite 900 San Francisco, CA 94105 415.788.0100 www.capps.com 14336_CAI Cvr_CS6.r2.indd 1 4/1/14 4:24 PM 1950 Low-tech shipping—goods loaded by longshoremen and stevedores—dominated freight transportation until 1956. CAI International, Inc. 25 years of progress: CAI International, Inc. 2013 Looking back and CAI International, Inc. ANNUAL moving forward 2013 A N N U A L R E P O R T REPORT Steuart Tower, 1 Market Plaza Suite 900 San Francisco, CA 94105 415.788.0100 www.capps.com 14336_CAI Cvr_CS6.r2.indd 1 4/1/14 4:24 PM E A BRIEF HISTORY Corporate information 2014 A brief history of CAI OF Today’s sophisticated container ships are loaded CAI and unloaded by highly automated and highly CAI develops presence in European after market efficient cranes, and they have grown dramatically business segment 588,000 TEU in capacity. The biggest—“Ultra Large Container CAI enters CAI completes first container IPO of common Ships”— can hold 18,000+ TEUs (“twenty-foot management stock (listed on agreement the New York Stock equivalent units”). Exchange under the Interpool, Inc., 37,000 TEU symbol CAP). Sold replaces Mitsui 5.8 million shares & Co. as a 50% of common stock investor in CAI 754,000 TEU 285,000 TEU CAI is founded by Hiromitsu Ogawa Directors (pictured left to right) Stockholder Inquiries Annual Meeting Gary M. Sawka Investor Relations The 2014 annual meeting of stock- Director Steuart Tower, 1 Market Plaza holders will be held on Friday, June 6, ‘89 ‘92 ‘93 ‘96 ‘98 ‘01 ‘04 ‘06 ‘07 Suite 900 ‘13 Hiromitsu Ogawa 2014 at 10:00 a.m. (PDT) at the offices San Francisco, CA 94105 of Perkins Coie located at 3150 Porter Chairman of the Board of Directors Tel: 415-788-0100 Drive, Palo Alto, CA 94304. William W. Liebeck Stock Listing Web Site Chairman of the Compensation Our common shares are listed on The company’s Web site provides Committee, and Director the NYSE under the symbol CAP. access to a wide range of information 430,000 TEU 1.1 million TEU Mitsui & Co., Masaaki (John) Nishibori about the company and our products. one of Japan’s CAI begins developing Director Please visit us at www.capps.com. its after market network, largest trading David G. Remington Investor Relations on the Web leasing containers to companies, Chairman of the Nominating and For more information related to the domestic storage Legal Counsel invests in CAI 669,000 TEU Corporate Governance Committee, investing in the company, please see industry and selling used Perkins Coie LLP and Director the Investors tab on our Web site at containers on a wholesale On October 1st, CAI 3150 Porter Drive www.capps.com. and retail basis repurchases the 50% Victor Garcia Palo Alto, CA 94304 President, Chief Executive Officer, common equity interest Stock Transfer Agent in CAI formerly held by and Director Design by: Michael Patrick Partners Computershare Investor Services www.michaelpatrickpartners.com Interpool. On November Marvin Dennis 250 Royall Street Inside front cover photo: 1st, Hiromitsu assumes Chairman of the Audit Committee, Canton, MA 02021 Courtesy of the Port of Oakland Archives 100% ownership and takes 181,000 TEU and Director Tel: 781-575-2879 on role as Chairman of CAI worldwide Investor Center: the Board Corporate Headquarters marketing office Steuart Tower, 1 Market Plaza www.computershare.com/investor and agency Suite 900 Annual Report (Form 10-K) network in place San Francisco, CA 94105 A copy of the company’s 2013 Annual Tel: 415-788-0100 Report on Form 10-K filed with the Independent Accountants Securities and Exchange Commission KPMG LLP is available to stockholders, without charge, by accessing the company’s Web site at www.capps.com or upon written request to the company’s This document is printed on paper certified to the environmental and social standards of the headquarters. Forest Stewardship CouncilTM (FSC®). 14336_CAI Cvr_CS6.r2.indd 2 4/1/14 4:23 PM E A BRIEF HISTORY Corporate information 2014 A brief history of CAI OF Today’s sophisticated container ships are loaded CAI and unloaded by highly automated and highly CAI develops presence in European after market efficient cranes, and they have grown dramatically business segment 588,000 TEU in capacity. The biggest—“Ultra Large Container CAI enters CAI completes first container IPO of common Ships”— can hold 18,000+ TEUs (“twenty-foot management stock (listed on agreement the New York Stock equivalent units”). Exchange under the Interpool, Inc., 37,000 TEU symbol CAP). Sold replaces Mitsui 5.8 million shares & Co. as a 50% of common stock investor in CAI 754,000 TEU 285,000 TEU CAI is founded by Hiromitsu Ogawa Directors (pictured left to right) Stockholder Inquiries Annual Meeting Gary M. Sawka Investor Relations The 2014 annual meeting of stock- Director Steuart Tower, 1 Market Plaza holders will be held on Friday, June 6, ‘89 ‘92 ‘93 ‘96 ‘98 ‘01 ‘04 ‘06 ‘07 Suite 900 ‘13 Hiromitsu Ogawa 2014 at 10:00 a.m. (PDT) at the offices San Francisco, CA 94105 of Perkins Coie located at 3150 Porter Chairman of the Board of Directors Tel: 415-788-0100 Drive, Palo Alto, CA 94304. William W. Liebeck Stock Listing Web Site Chairman of the Compensation Our common shares are listed on The company’s Web site provides Committee, and Director the NYSE under the symbol CAP. access to a wide range of information 430,000 TEU 1.1 million TEU Mitsui & Co., Masaaki (John) Nishibori about the company and our products. one of Japan’s CAI begins developing Director Please visit us at www.capps.com. its after market network, largest trading David G. Remington Investor Relations on the Web leasing containers to companies, Chairman of the Nominating and For more information related to the domestic storage Legal Counsel invests in CAI 669,000 TEU Corporate Governance Committee, investing in the company, please see industry and selling used Perkins Coie LLP and Director the Investors tab on our Web site at containers on a wholesale On October 1st, CAI 3150 Porter Drive www.capps.com. and retail basis repurchases the 50% Victor Garcia Palo Alto, CA 94304 President, Chief Executive Officer, common equity interest Stock Transfer Agent in CAI formerly held by and Director Design by: Michael Patrick Partners Computershare Investor Services www.michaelpatrickpartners.com Interpool. On November Marvin Dennis 250 Royall Street Inside front cover photo: 1st, Hiromitsu assumes Chairman of the Audit Committee, Canton, MA 02021 Courtesy of the Port of Oakland Archives 100% ownership and takes 181,000 TEU and Director Tel: 781-575-2879 on role as Chairman of CAI worldwide Investor Center: the Board Corporate Headquarters marketing office Steuart Tower, 1 Market Plaza www.computershare.com/investor and agency Suite 900 Annual Report (Form 10-K) network in place San Francisco, CA 94105 A copy of the company’s 2013 Annual Tel: 415-788-0100 Report on Form 10-K filed with the Independent Accountants Securities and Exchange Commission KPMG LLP is available to stockholders, without charge, by accessing the company’s Web site at www.capps.com or upon written request to the company’s This document is printed on paper certified to the environmental and social standards of the headquarters. Forest Stewardship CouncilTM (FSC®). 14336_CAI Cvr_CS6.r2.indd 2 4/1/14 4:23 PM 1989 The modern intermodal container industry was born in Newark, New Jersey, in 1956, and “containerization” ignited a boom in global shipping and global trade. In 1989, CAI was founded to provide container leasing services to this growing market. In 2014, we celebrate our 25th anniversary: a quarter century of evolution and progress that has made CAI one of the largest container leasing companies in the world. New York Stock Exchange under symbol: CAP CAI INTERNATIONAL 2013 ANNUAL REPORT | 01 14336_CAI Editorials_CS6.r2.indd 1 4/1/14 5:24 PM CAI today: 1.1 million TEUs around the world CAI was founded 25 years ago. Our initial strategy focused on establishing strong, long-term relationships with the world’s shipping lines and building our fleet of containers around the world. As of December 31, 2013, CAI’s fleet included approximately 1.1 million TEUs— roughly 1.5 billion cubic feet of container space. We put that fleet, along with our logistical expertise, to work on behalf of our global customer base, which includes more than 300 of the world’s largest container shipping companies, by leveraging our network of representatives and agents in 21 countries. Last year, our fleet utilization rate (in terms of TEUs) was 91.8 percent. CONTAINER SHIP CAPACITY (TEUs) PERCENTAGE INCREASE 1988 2013 4,540 1 18,270 400% 1 Source: Harrison Consulting 02 | CAI INTERNATIONAL 2013 ANNUAL REPORT 14336_CAI Editorials_CS6.r2.indd 2 4/1/14 5:24 PM THE PORT OF LOS ANGELES Occupying 7,500 acres of land and water in San Pedro Bay, the Port of Los Angeles uses multiple high-speed cranes to unload approximately eight million TEUs each year. This makes Los Angeles the busiest container port in the United States. Its five largest trading partners are all in Asia: China, Japan, Taiwan, South Korea, and Thailand.2 2 Source: Wikipedia “Port of Los Angeles” 14336_CAI Editorials_CS6.r2.indd 3 4/1/14 5:24 PM Moving forward: The future of global trade The high cost of global shipping had been one of the chief obstacles for global trade, but containerization made the shipping of goods around the world dramatically less expensive.