Triton International Reports Fourth Quarter and Full Year 2021 Results and Declares Quarterly Dividend

February 15, 2022 – Triton International Limited (NYSE: TRTN) ("Triton")

Highlights:

  • Net income attributable to common shareholders for the fourth quarter of 2021 was $177.4 million or $2.67 per diluted share.
  • Adjusted net income was $177.5 million or $2.67 per diluted share, an increase of 57.1% from the fourth quarter of 2020 and 9.9% from the third quarter of 2021.
  • Net income attributable to common shareholders was $484.5 million for the full year of 2021, or $7.22 per diluted share, which includes $127.9 million of make-whole premium and other debt termination costs in the second and third quarters primarily related to the prepayment of $1.5 billion of senior secured institutional notes.
  • Adjusted net income was $614.2 million for the full year of 2021, or $9.16 per diluted share, an increase of 98.7% from 2020. Return on equity was 28.1% in 2021.
  • Triton purchased $3.6 billion of new containers delivered in 2021, driving over 30% in asset growth. As of February 11, 2022, Triton has ordered approximately $415 million of containers for delivery in 2022.
  • Triton repurchased 1.1 million common shares during the fourth quarter, and has repurchased an additional 0.7 million common shares through February 11, 2022.

Financial Results

The following table summarizes Triton’s selected key financial information for the three and twelve months ended December 31, 2021 and December 31, 2020 and the three months ended September 30, 2021.

 

(in millions, except per share data)

 

Three Months Ended,

 

Twelve Months Ended,

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

 

December 31, 2021

 

December 31, 2020

Total leasing revenues

$417.2

 

 

$400.2

 

 

$337.3

 

 

$1,533.9

 

 

$1,307.9

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

 

Net income attributable to common shareholders

$177.4

 

 

$123.0

 

 

$115.2

 

 

$484.5

 

 

$288.4

 

Net income per share - Diluted

$2.67

 

 

$1.83

 

 

$1.70

 

 

$7.22

 

 

$4.16

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP (1)

 

 

 

 

 

 

 

 

 

Adjusted net income

$177.5

 

 

$163.8

 

 

$114.7

 

 

$614.2

 

 

$319.9

 

Adjusted net income per share - Diluted

$2.67

 

 

$2.43

 

 

$1.70

 

 

$9.16

 

 

$4.61

 

 

 

 

 

 

 

 

 

 

 

Return on equity (2)

30.7

%

 

29.4

%

 

22.9

%

 

28.1

%

 

15.9

%

(1)

Refer to the "Use of Non-GAAP Financial Items" and "Non-GAAP Reconciliations of Adjusted Net Income" set forth below.

(2)

Refer to the “Calculation of Return on Equity” set forth below.

Operating Performance

"Triton achieved another record quarter of financial performance in the fourth quarter of 2021, providing an outstanding finish to an extraordinary year," commented Brian M. Sondey, Chief Executive Officer of Triton. "Triton generated $2.67 of Adjusted net income per share in the fourth quarter, an increase of 9.9% from the third quarter of 2021, and we achieved an annualized Return on equity of 30.7%. For the full year of 2021, Triton generated $9.16 of Adjusted net income per share and achieved a 28.1% Return on equity."

"Triton's exceptional performance in 2021 was supported by very favorable market conditions. A strong increase in goods consumption, particularly in the United States, drove a high level of trade growth, while widespread logistical bottlenecks slowed container turn-times, leading to incremental demand for containers. Limited vessel capacity contributed to a dramatic increase in freight rates, and kept our customers highly focused on container availability. Container supply struggled to catch up to demand for most of the year despite a significant increase in new container production, leading to record prices for new containers and very high market leasing rates."

"Triton used these strong market conditions and its many leadership advantages to drive exceptional operating performance. Our container utilization averaged 99.4% in 2021, and currently stands at 99.6%. We achieved record selling prices for used containers, and generated sizable disposal and trading gains despite limited container availability and low disposal volumes. Triton invested heavily in our container fleet in 2021 to provide critical support to our customers at a time of severe supply chain disruption. Triton purchased $3.6 billion of containers that were delivered in 2021, leading to over 30% growth in our revenue earning assets. We estimate that Triton achieved roughly a 40% share of new leasing transactions in 2021, reflecting the importance customers place on our deep container supply capability and further securing our position as the "go-to" supplier in the container leasing industry."

"Triton reinforced its strong financial performance and leadership position with attractive financing activity. Over the past two years, Triton has raised and refinanced $10.3 billion of debt to support our aggressive container investments and prepay more expensive facilities. Triton's financing activity has been supported by the upgrade to Triton’s corporate rating to BBB- by S&P Global Ratings and Fitch, and Triton's transition of our capital structure toward unsecured investment grade debt. Triton's average effective interest rate has decreased 1.4% over the last two years, and we expect our shift to unsecured investment grade financing will provide access to deeper and more efficient sources of capital."

"The pace of our new container investment slowed in the latter part of 2021 as deliveries pushed past the summer peak season. Triton has shifted a portion of our strong cash flow to share repurchases, reflecting our nimble and disciplined approach to capital management. Triton repurchased 1.1 million common shares during the fourth quarter, and has repurchased an additional 0.7 million common shares through February 11, 2022. Triton has now purchased approximately 20% of our outstanding common shares since the program was initiated in the fall of 2018. In October, Triton also announced a 14% increase in our quarterly dividend to $0.65 per common share."

"We expect the benefits from our 2021 leasing and financing activity will be durable. The average lease duration for our large block of 2021 new containers is 13 years, and we secured long lease durations for used container pick-ups and lease extensions. The average lease duration for containers on long-term and finance leases has increased to over five years on a CEU basis and nearly seven years on a net book value basis. We have also locked in low financing costs, with 86.3% of our debt having fixed interest rates, and the weighted average life of our fixed rate debt and fixed rate swaps is currently five years."

Outlook

Mr. Sondey continued, "We expect to have another outstanding year in 2022. We are carrying a significant amount of operational and financial momentum, we have made durable enhancements to our business and our strong cash flow provides many levers to drive shareholder value."

"While the global economy remains subject to heightened uncertainty due to the ongoing COVID-19 pandemic, we expect overall container demand will remain strong through the year. Our customers are anticipating goods consumption and trade volumes will remain elevated, and they expect the operational challenges slowing container turn times will be difficult to resolve. We expect container supply will better keep pace with demand in 2022 due to increased new container production volumes, and new container prices have eased over 10% from their peak level to roughly $3,400 per 20' dry container. However, new container prices remain far above their historical range, and market leasing rates and used container sale prices also remain very high."

"While the first quarter of the year typically represents the slow season for dry containers and contains the fewest number of billable days, we expect our Adjusted net income per share in the first quarter of 2022 will be relatively in line with the fourth quarter of 2021 due to our operating momentum. Our financial trajectory after the first quarter will depend on how market conditions develop, but our strong lease portfolio and durable cash flows give us a high degree of confidence that our profitability and returns will remain at a very high level throughout 2022 and into the longer term."

Common Share Dividends

Triton’s Board of Directors has declared a $0.65 per share quarterly cash dividend on its issued and outstanding common shares, payable on March 25, 2022 to shareholders of record at the close of business on March 11, 2022.

Share Repurchase Update

Triton repurchased 1.1 million common shares in the fourth quarter of 2021 and repurchased an additional 0.7 million common shares through February 11, 2022.

Preferred Shares

The Company's Board of Directors also declared a cash dividend payable on March 15, 2022 to holders of record at the close of business on March 8, 2022 on its issued and outstanding preferred shares as follows:

Preferred Share Series

 

Dividend Rate

 

Dividend Per Share

Series A Preferred Shares (NYSE:TRTNPRA)

 

8.500%

 

$0.5312500

Series B Preferred Shares (NYSE:TRTNPRB)

 

8.000%

 

$0.5000000

Series C Preferred Shares (NYSE:TRTNPRC)

 

7.375%

 

$0.4609375

Series D Preferred Shares (NYSE:TRTNPRD)

 

6.875%

 

$0.4296875

Series E Preferred Shares (NYSE:TRTNPRE)

 

5.750%

 

$0.3593750

Fourth Quarter 2021 Investor Webcast

Triton will hold a Webcast at 8:30 a.m. (New York time) on Tuesday, February 15, 2022 to discuss its fourth quarter results. To listen by phone, please dial 1-877-418-5277 (domestic) or 1-412-717-9592 (international) approximately 15 minutes prior to the start time and reference the Triton International Limited conference call. To access the live Webcast please visit Triton's website at http://www.trtn.com. An archive of the Webcast will be available one hour after the live call.

About Triton International Limited

Triton International Limited is the world’s largest lessor of intermodal freight containers. With a container fleet of 7.3 million twenty-foot equivalent units ("TEU"), Triton’s global operations include acquisition, leasing, re-leasing and subsequent sale of multiple types of intermodal containers and chassis.

Utilization, Fleet, and Leasing Revenue Information

The following table summarizes the equipment fleet utilization for the periods indicated:

 

Quarter Ended

 

December 31, 2021

 

September 30, 2021

 

June 30, 2021

 

March 31, 2021

Average Utilization (1)

99.6

%

 

99.6

%

 

99.4

%

 

99.1

%

Ending Utilization (1)

99.6

%

 

99.6

%

 

99.5

%

 

99.3

%

(1)

Utilization is computed by dividing total units on lease (in CEU) by the total units in our fleet (in CEU), excluding new units not yet leased and off-hire units designated for sale.

The following table summarizes the equipment fleet as of December 31, 2021, September 30, 2021 and December 31, 2020 (in units, TEUs and CEUs):

 

Equipment Fleet in Units

 

Equipment Fleet in TEU

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

Dry

3,843,719

 

3,748,654

 

3,295,908

 

6,531,816

 

6,351,083

 

5,466,421

Refrigerated

235,338

 

239,328

 

227,519

 

457,172

 

464,465

 

439,956

Special

92,411

 

92,458

 

93,885

 

169,004

 

168,951

 

170,792

Tank

11,692

 

11,591

 

11,312

 

11,692

 

11,591

 

11,312

Chassis

24,139

 

24,381

 

24,781

 

44,554

 

44,726

 

45,188

Equipment leasing fleet

4,207,299

 

4,116,412

 

3,653,405

 

7,214,238

 

7,040,816

 

6,133,669

Equipment trading fleet

53,204

 

55,299

 

64,243

 

83,692

 

86,598

 

98,991

Total

4,260,503

 

4,171,711

 

3,717,648

 

7,297,930

 

7,127,414

 

6,232,660

 

Equipment in CEU(1)

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

Operating leases

7,291,769

 

7,294,503

 

6,649,350

Finance leases

623,136

 

494,839

 

295,784

Equipment trading fleet

81,136

 

83,976

 

98,420

Total

7,996,041

 

7,873,318

 

7,043,554

(1)

In the equipment fleet tables above, we have included total fleet count information based on CEU. CEU is a ratio used to convert the actual number of containers in our fleet to a figure based on the relative purchase prices of our various equipment types to that of a 20-foot dry container. For example, the CEU ratio for a 40-foot high cube dry container is 1.70, and a 40-foot high cube refrigerated container is 7.50. These factors may differ slightly from CEU ratios used by others in the industry.

The following table provides a summary of our equipment lease portfolio by lease type, based on CEU and net book value, as of December 31, 2021:

 

 

By CEU

 

By Net Book Value

Lease Portfolio

 

December 31, 2021

 

December 31, 2021

Long-term leases

 

72.4

%

 

73.6

%

Finance leases

 

8.0

 

 

13.8

 

Subtotal

 

80.4

 

 

87.4

 

Service leases

 

5.0

 

 

3.5

 

Expired long-term leases, non-sale age (units on hire)

 

8.4

 

 

6.2

 

Expired long-term leases, sale-age (units on hire)

 

6.2

 

 

2.9

 

Total

 

100.0

%

 

100.0

%

The following table summarizes our leasing revenue for the periods indicated (in thousands):

 

Three Months Ended,

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

Operating leases

 

 

 

 

 

Per diem revenues

$

383,529

 

$

377,234

 

$

319,679

Fee and ancillary revenues

 

11,092

 

 

7,987

 

 

10,439

Total operating lease revenues

 

394,621

 

 

385,221

 

 

330,118

Finance leases

 

22,541

 

 

14,970

 

 

7,167

Total leasing revenues

$

417,162

 

$

400,191

 

$

337,285

 

Important Cautionary Information Regarding Forward-Looking Statements

Certain statements in this release, other than purely historical information, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that include the words "expect," "intend," "plan," "seek," "believe," "project," "predict," "anticipate," "potential," "will," "may," "would" and similar statements of a future or forward-looking nature may be used to identify forward-looking statements. All forward-looking statements address matters that involve risks and uncertainties, many of which are beyond Triton's control. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements.

These factors include, without limitation, economic, business, competitive, market and regulatory conditions and the following: the impact of COVID-19 on our business and financial results; decreases in the demand for leased containers; decreases in market leasing rates for containers; difficulties in re-leasing containers after their initial fixed-term leases; our customers' decisions to buy rather than lease containers; our dependence on a limited number of customers and suppliers; customer defaults; decreases in the selling prices of used containers; extensive competition in the container leasing industry; difficulties stemming from the international nature of our business; decreases in demand for international trade; disruption to our operations resulting from the political and economic policies of the United States and other countries, particularly China, including but not limited to, the impact of trade wars, duties and tariffs; disruption to our operations from failures of, or attacks on, our information technology systems; disruption to our operations as a result of natural disasters; compliance with laws and regulations related to economic and trade sanctions, security, anti-terrorism, environmental protection and corruption; the availability and cost of capital; restrictions imposed by the terms of our debt agreements; changes in tax laws in Bermuda, the United States and other countries; and other risks and uncertainties, including those risk factors set forth in the section entitled "Risk Factors" in our Form 10-K filed with the Securities and Exchange Commission ("SEC"), on February 16, 2021, in any Form 10-Q filed or to be filed by Triton, and in other documents we file with the SEC from time to time.

The foregoing list of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere. Any forward-looking statements made herein are qualified in their entirety by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on Triton or its business or operations. Except to the extent required by applicable law, we undertake no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

-Financial Tables Follow-

 

TRITON INTERNATIONAL LIMITED

Consolidated Balance Sheets

(In thousands, except share data)

 

 

December 31, 2021

 

December 31, 2020

ASSETS:

 

 

 

Leasing equipment, net of accumulated depreciation of $3,919,181 and $3,370,652

$

10,201,113

 

 

$

8,630,696

 

Net investment in finance leases

 

1,558,290

 

 

 

282,131

 

Equipment held for sale

 

48,746

 

 

 

67,311

 

Revenue earning assets

 

11,808,149

 

 

 

8,980,138

 

Cash and cash equivalents

 

106,168

 

 

 

61,512

 

Restricted cash

 

124,370

 

 

 

90,484

 

Accounts receivable, net of allowances of $1,178 and $2,192

 

294,792

 

 

 

226,090

 

Goodwill

 

236,665

 

 

 

236,665

 

Lease intangibles, net of accumulated amortization of $281,340 and $264,791

 

17,117

 

 

 

33,666

 

Other assets

 

50,346

 

 

 

83,969

 

Fair value of derivative instruments

 

6,231

 

 

 

9

 

Total assets

$

12,643,838

 

 

$

9,712,533

 

LIABILITIES AND SHAREHOLDERS' EQUITY:

 

 

 

Equipment purchases payable

$

429,568

 

 

$

191,777

 

Fair value of derivative instruments

 

48,277

 

 

 

128,872

 

Deferred revenue

 

92,198

 

 

 

26,786

 

Accounts payable and other accrued expenses

 

70,557

 

 

 

68,449

 

Net deferred income tax liability

 

376,009

 

 

 

327,431

 

Debt, net of unamortized costs of $63,794 and $42,747

 

8,562,517

 

 

 

6,403,270

 

Total liabilities

 

9,579,126

 

 

 

7,146,585

 

 

 

 

 

Shareholders' equity:

 

 

 

Preferred shares, $0.01 par value, at liquidation preference

 

730,000

 

 

 

555,000

 

Common shares, $0.01 par value, 270,000,000 shares authorized, 81,295,366 and 81,151,723 shares issued, respectively

 

813

 

 

 

812

 

Undesignated shares, $0.01 par value, 800,000 and 7,800,000 shares authorized, respectively, no shares issued and outstanding

 

 

 

 

 

Treasury shares, at cost, 15,429,499 and 13,901,326 shares, respectively

 

(522,360

)

 

 

(436,822

)

Additional paid-in capital

 

904,224

 

 

 

905,323

 

Accumulated earnings

 

2,000,854

 

 

 

1,674,670

 

Accumulated other comprehensive income (loss)

 

(48,819

)

 

 

(133,035

)

Total shareholders' equity

 

3,064,712

 

 

 

2,565,948

 

Total liabilities and shareholders' equity

$

12,643,838

 

 

$

9,712,533

 

 

TRITON INTERNATIONAL LIMITED

Consolidated Statements of Operations

(In thousands, except per share amounts)

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Leasing revenues:

 

 

 

 

 

 

 

Operating leases

$

394,621

 

 

$

330,118

 

 

$

1,480,495

 

 

$

1,276,697

 

Finance leases

 

22,541

 

 

 

7,167

 

 

 

53,385

 

 

 

31,210

 

Total leasing revenues

 

417,162

 

 

 

337,285

 

 

 

1,533,880

 

 

 

1,307,907

 

 

 

 

 

 

 

 

 

Equipment trading revenues

 

39,423

 

 

 

27,403

 

 

 

142,969

 

 

 

85,780

 

Equipment trading expenses

 

(33,354

)

 

 

(20,426

)

 

 

(108,870

)

 

 

(70,981

)

Trading margin

 

6,069

 

 

 

6,977

 

 

 

34,099

 

 

 

14,799

 

 

 

 

 

 

 

 

 

Net gain on sale of leasing equipment

 

28,096

 

 

 

18,422

 

 

 

107,060

 

 

 

37,773

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Depreciation and amortization

 

165,384

 

 

 

139,893

 

 

 

626,240

 

 

 

542,128

 

Direct operating expenses

 

5,614

 

 

 

14,831

 

 

 

26,860

 

 

 

93,690

 

Administrative expenses

 

23,993

 

 

 

19,440

 

 

 

89,319

 

 

 

80,532

 

Provision (reversal) for doubtful accounts

 

(8

)

 

 

(1,840

)

 

 

(2,475

)

 

 

2,768

 

Total operating expenses

 

194,983

 

 

 

172,324

 

 

 

739,944

 

 

 

719,118

 

Operating income (loss)

 

256,344

 

 

 

190,360

 

 

 

935,095

 

 

 

641,361

 

Other expenses:

 

 

 

 

 

 

 

Interest and debt expense

 

52,669

 

 

 

54,327

 

 

 

222,024

 

 

 

252,979

 

Debt termination expense

 

1,330

 

 

 

358

 

 

 

133,853

 

 

 

24,734

 

Other (income) expense, net

 

(184

)

 

 

(192

)

 

 

(1,379

)

 

 

(4,371

)

Total other expenses

 

53,815

 

 

 

54,493

 

 

 

354,498

 

 

 

273,342

 

Income (loss) before income taxes

 

202,529

 

 

 

135,867

 

 

 

580,597

 

 

 

368,019

 

Income tax expense (benefit)

 

12,076

 

 

 

10,170

 

 

 

50,357

 

 

 

38,240

 

Net income (loss)

$

190,453

 

 

$

125,697

 

 

$

530,240

 

 

$

329,779

 

Less: dividend on preferred shares

 

13,027

 

 

 

10,512

 

 

 

45,740

 

 

 

41,362

 

Net income (loss) attributable to common shareholders

$

177,426

 

 

$

115,185

 

 

$

484,500

 

 

$

288,417

 

Net income per common share—Basic

$

2.68

 

 

$

1.72

 

 

$

7.26

 

 

$

4.18

 

Net income per common share—Diluted

$

2.67

 

 

$

1.70

 

 

$

7.22

 

 

$

4.16

 

Cash dividends paid per common share

$

0.65

 

 

$

0.57

 

 

$

2.36

 

 

$

2.13

 

Weighted average number of common shares outstanding—Basic

 

66,113

 

 

 

67,140

 

 

 

66,728

 

 

 

69,051

 

Dilutive restricted shares

 

428

 

 

 

431

 

 

 

340

 

 

 

294

 

Weighted average number of common shares outstanding—Diluted

 

66,541

 

 

 

67,571

 

 

 

67,068

 

 

 

69,345

 

 

TRITON INTERNATIONAL LIMITED

Consolidated Statements of Cash Flows

(In thousands)

 

 

Twelve Months Ended December 31,

 

December 31, 2021

 

December 31, 2020

Cash flows from operating activities:

 

 

 

Net income (loss)

$

530,240

 

 

$

329,779

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

626,240

 

 

 

542,128

 

Amortization of deferred debt cost and other debt related amortization

 

11,603

 

 

 

12,973

 

Lease related amortization

 

17,654

 

 

 

23,878

 

Share-based compensation expense

 

9,365

 

 

 

9,896

 

Net (gain) loss on sale of leasing equipment

 

(107,060

)

 

 

(37,773

)

Unrealized (gain) loss on derivative instruments

 

 

 

 

286

 

Debt termination expense

 

133,853

 

 

 

24,734

 

Deferred income taxes

 

43,077

 

 

 

35,662

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(50,336

)

 

 

(9,955

)

Deferred revenue

 

83,600

 

 

 

90

 

Accounts payable and other accrued expenses

 

(6,860

)

 

 

(28,360

)

Net equipment sold (purchased) for resale activity

 

7,606

 

 

 

14,503

 

Cash received (paid) for settlement of interest rate swaps

 

5,497

 

 

 

(5,074

)

Cash collections on finance lease receivables, net of income earned

 

74,117

 

 

 

78,333

 

Other assets

 

26,568

 

 

 

(47,348

)

Net cash provided by (used in) operating activities

 

1,405,164

 

 

 

943,752

 

Cash flows from investing activities:

 

 

 

Purchases of leasing equipment and investments in finance leases

 

(3,434,394

)

 

 

(744,129

)

Proceeds from sale of equipment, net of selling costs

 

217,078

 

 

 

255,104

 

Other

 

(70

)

 

 

8

 

Net cash provided by (used in) investing activities

 

(3,217,386

)

 

 

(489,017

)

Cash flows from financing activities:

 

 

 

Issuance of preferred shares, net of underwriting discount

 

169,488

 

 

 

145,275

 

Purchases of treasury shares

 

(82,528

)

 

 

(158,312

)

Debt issuance costs

 

(42,631

)

 

 

(26,814

)

Borrowings under debt facilities

 

8,690,006

 

 

 

3,495,445

 

Payments under debt facilities and finance lease obligations

 

(6,635,987

)

 

 

(3,737,150

)

Dividends paid on preferred shares

 

(45,321

)

 

 

(40,933

)

Dividends paid on common shares

 

(157,312

)

 

 

(146,476

)

Other

 

(4,951

)

 

 

(2,746

)

Net cash provided by (used in) financing activities

 

1,890,764

 

 

 

(471,711

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

78,542

 

 

 

(16,976

)

Cash, cash equivalents and restricted cash, beginning of period

 

151,996

 

 

 

168,972

 

Cash, cash equivalents and restricted cash, end of period

 

230,538

 

 

 

151,996

 

Supplemental disclosures:

 

 

 

Interest paid

$

211,412

 

 

$

244,280

 

Income taxes paid (refunded)

$

7,933

 

 

$

2,191

 

Right-of-use asset for leased property

$

2,517

 

 

$

543

 

Supplemental non-cash investing activities:

 

 

 

Equipment purchases payable

$

429,568

 

 

$

191,777

 

Use of Non-GAAP Financial Items

We use the terms "Adjusted net income" and Return on equity throughout this press release.

Adjusted net income and Return on equity are not items presented in accordance with U.S. GAAP and should not be considered as alternatives to, or more meaningful than, amounts determined in accordance with U.S. GAAP, including net income.

Adjusted net income is adjusted for certain items management believes are not representative of our operating performance. Adjusted net income is defined as net income attributable to common shareholders excluding debt termination expenses net of tax, unrealized gains and losses on derivative instruments net of tax, and foreign and other income tax adjustments.

We believe that Adjusted net income is useful to an investor in evaluating our operating performance because this item:

  • is widely used by securities analysts and investors to measure a company's operating performance;
  • helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our capital structure, our asset base and certain non-routine events which we do not expect to occur in the future; and
  • is used by our management for various purposes, including as measures of operating performance and liquidity, to assist in comparing performance from period to period on a consistent basis, in presentations to our board of directors concerning our financial performance and as a basis for strategic planning and forecasting.

We have provided a reconciliation of net income attributable to common shareholders, the most directly comparable U.S. GAAP measure, to Adjusted net income in the table below for the three months ended December 31, 2021, September 30, 2021, and December 31, 2020 and for the twelve months ended December 31, 2021 and December 31, 2020.

Additionally, the calculation for return on equity is adjusted annualized earnings divided by average shareholders' equity. Management utilizes return on equity in evaluating how much profit the Company generates on the shareholders' equity in the Company and believes it is useful for comparing the profitability of companies in the same industry.

 

TRITON INTERNATIONAL LIMITED

Non-GAAP Reconciliations of Adjusted Net Income

(In thousands, except per share amounts)

 

 

 

 

 

 

 

Three Months Ended,

 

Twelve Months Ended,

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

 

December 31, 2021

 

December 31, 2020

Net income attributable to common shareholders

$

177,426

 

 

$

123,045

 

 

$

115,185

 

 

$

484,500

 

 

$

288,417

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Unrealized loss (gain) on derivative instruments, net

 

 

 

 

 

 

 

 

 

 

 

 

 

282

 

Debt termination expense

 

1,119

 

 

 

41,214

 

 

 

358

 

 

 

131,818

 

 

 

21,522

 

State and other income tax adjustments

 

(957

)

 

 

(496

)

 

 

(866

)

 

 

(1,453

)

 

 

1,390

 

Tax benefit from vesting of restricted shares

 

(40

)

 

 

 

 

 

 

 

 

(683

)

 

 

(390

)

Tax adjustments related to intra-entity asset transfer

 

 

 

 

 

 

 

 

 

 

 

 

 

8,629

 

Adjusted net income

$

177,548

 

 

$

163,763

 

 

$

114,677

 

 

$

614,182

 

 

$

319,850

 

Adjusted net income per common share—Diluted

$

2.67

 

 

$

2.43

 

 

$

1.70

 

 

$

9.16

 

 

$

4.61

 

Weighted average number of common shares outstanding—Diluted

 

66,541

 

 

 

67,291

 

 

 

67,571

 

 

 

67,068

 

 

 

69,345

 

TRITON INTERNATIONAL LIMITED

Calculation of Return on Equity

(In thousands)

 

 

 

 

 

 

 

Three Months Ended,

 

Twelve Months Ended,

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

 

December 31, 2021

 

December 31, 2020

Adjusted net income

$

177,548

 

 

$

163,763

 

 

$

114,677

 

 

$

614,182

 

 

$

319,850

 

Annualized Adjusted net income (1)

 

704,402

 

 

 

649,712

 

 

 

454,969

 

 

 

614,182

 

 

 

319,850

 

 

 

 

 

 

 

 

 

 

 

Average Shareholders' equity (2)(3)

$

2,291,791

 

 

$

2,210,474

 

 

$

1,987,419

 

 

$

2,187,185

 

 

$

2,010,255

 

 

 

 

 

 

 

 

 

 

 

Return on equity

 

30.7

%

 

 

29.4

%

 

 

22.9

%

 

 

28.1

%

 

 

15.9

%

(1)

Annualized Adjusted net income was calculated based on calendar days per quarter.

(2)

Average Shareholders' equity was calculated using the quarter’s beginning and ending Shareholder’s equity for the three-month ended periods, and the ending Shareholder's equity from each quarter in the current year and December 31 of the previous year for the twelve month ended periods.

(3)

Average Shareholders' equity was adjusted to exclude preferred shares.

 

Contacts

Andrew Greenberg

Senior Vice President

Business Development & Investor Relations

(914) 697-2900

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