UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported):   November 2, 2018
 
TRITON INTERNATIONAL LIMITED
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

	
					
Bermuda	 	001-37827	 	98-1276572	
(State or other jurisdiction of incorporation)	 	(Commission File Number)	 	(IRS Employer Identification No.)	
 
Canon's Court, 22 Victoria Street Hamilton HM12, Bermuda
(Address of Principal Executive Offices, including Zip Code)
 
Telephone: (441) 294-8033
(Registrant's Telephone Number, Including Area Code)
 
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant any of the following provisions:
 
o             Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o             Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o             Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o             Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

Item 2.02. Results of Operations and Financial Condition.
 
On November 2, 2018 , Triton International Limited issued a press release announcing its results of operations for the quarter ended September 30, 2018 .  A copy of the press release is furnished with this report as Exhibit 99.1.
 
The information in this Current Report on Form 8-K, including the attached exhibit, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be set forth by specific reference in such filing.
 
Item 9.01. Financial Statements and Exhibits.
 
(d)   Exhibits
 
99.1         Press release issued by Triton International Limited dated November 2, 2018 .

2

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	
				
 	 	Triton International Limited	
 	 	
Date: November 2, 2018	 	By:	/s/ John Burns	
 	 	Name:	John Burns	
 	 	Title:	Chief Financial Officer	

3

TRITON INTERNATIONAL REPORTS THIRD QUARTER 2018 RESULTS
ADJUSTED EPS OF $1.17 AND QUARTERLY DIVIDEND OF $0.52

Hamilton, Bermuda – November 2, 2018 – Triton International Limited (NYSE: TRTN) ("Triton")

Third Quarter Highlights:
		
•	Adjusted net income was $94.8 million or $1.17 per diluted share, an increase of 46.3% per diluted share from the third quarter of 2017 and an increase of 6.4% per diluted share from the second quarter of 2018 .	
		
•	Net income attributable to shareholders was $94.2 million or $1.17 per diluted share.	
		
•	Container pick-up activity remained strong in the third quarter of 2018 and our utilization averaged 98.7% .	
		
•	Announced a quarterly dividend of $0.52 per share payable on December 20, 2018 to shareholders of record as of December 3, 2018 .	

Financial Results
The following table summarizes Triton’s selected key financial information for the three and nine months ended September 30, 2018 and September 30, 2017 and for the three months ended June 30, 2018 .

										
 	(in millions, except per share data)	
 	Three Months Ended,	 	Nine Months Ended,	
 	September 30, 2018	 	June 30, 2018	 	September 30, 2017	 	September 30, 2018	 	September 30, 2017	
Total leasing revenues	$350.1	 	$329.8	 	$302.1	 	$994.9	 	$849.7	
 	 	 	 	 	 	 	 	 	 	
GAAP	 	 	 	 	 	 	 	 	 	
Net income attributable to shareholders	$94.2	 	$104.9 (3)	 	$57.2	 	$280.0	 	$137.4	
Net income per share - Diluted	$1.17	 	$1.30	 	$0.75	 	$3.47	 	$1.84	
 	 	 	 	 	 	 	 	 	 	
Non-GAAP   (1)	 	 	 	 	 	 	 	 	 	
Adjusted net income	$94.8	 	$88.9	 	$60.7	 	$263.6	 	$143.2	
Adjusted net income per share - Diluted	$1.17	 	$1.10	 	$0.80	 	$3.27	 	$1.92	
 	 	 	 	 	 	 	 	 	 	
Return on equity (2)	16.9%	 	16.4%	 	13.4%	 	16.3%	 	10.7%	
		
(1)	Refer to the "Use of Non-GAAP Financial Measures" and "Non-GAAP Reconciliations of Adjusted Net Income" set forth below.	
		
(2)	Triton's definition and calculation of Return on equity is annualized Adjusted net income divided by average shareholders' equity for the period.	
		
(3)	Net income attributable to shareholders included a one-time gain of $21.0 million on the sale of a building.	

1

Operating Performance
“Triton achieved outstanding performance in the third quarter of 2018", commented Brian M. Sondey, Chief Executive Officer of Triton. "We generated $94.8 million of Adjusted net income in the third quarter, or $1.17 of Adjusted net income per share, which represents an increase of 6.4% from the second quarter of 2018 and an increase of 46.3% from the third quarter of 2017. We also realized an annualized Return on equity of 16.9% .”

“Triton’s strong financial results continue to be driven by outstanding operational performance, our unique competitive advantages and a favorable market environment. Container pick-up activity was strong throughout the third quarter, reflecting ongoing trade growth and a tight supply / demand balance for containers. We also continued to benefit from an increase in the share for leasing relative to direct container purchases by our customers, and a continued high leasing deal share for Triton. Our utilization averaged 98.7% in the third quarter, and currently stands at 98.4%. The start of the fourth quarter typically marks the end of the peak season for dry containers, and net container pick-up activity has slowed from the high volumes we generated in the second and third quarters. New container prices and market lease rates have also decreased as demand has slowed seasonally."

"Triton continues to grow its fleet through value-added investment and we have ordered $1.5 billion of containers for delivery in 2018. We continue to focus on reducing our exposure to changes in market conditions by extending our lease durations, and the average initial lease duration for new container leases originated this year is approximately seven years.”

Outlook
Mr. Sondey continued, “While we are entering the typical slow season for dry containers, the overall supply / demand balance for containers remains tight and we are starting the fourth quarter with strong financial momentum. As a result, we expect our Adjusted net income in the fourth quarter of 2018 will remain in the same range as our strong third quarter results. Looking forward to 2019, the imposition of increased tariffs on goods traded between the United States and China has added uncertainty to global economic and trade forecasts and to our market. However, our customers continue to believe the increased tariffs will not have a significant impact on overall global container trading volumes, and market forecasters are currently projecting trade growth will remain solidly positive in 2019. We also expect the market uncertainty will encourage our customers to continue to rely heavily on leasing.”

Dividend
Triton’s Board of Directors has approved and declared a $0.52 per share quarterly cash dividend on its issued and outstanding common shares, payable on December 20, 2018 to shareholders of record at the close of business on December 3, 2018 .

Share Repurchase Update
As of October 31, 2018, we have repurchased approximately 1.0 million common shares for a total of $30.1 million at an average price per-share of $30.84. Currently, $169.9 million remains available of the $200.0 million share repurchase authorized by the Board in August 2018.

Investors’ Webcast
Triton will hold a Webcast at 8:30 a.m. (New York time) on Friday, November 2, 2018 to discuss its third 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.

2

About Triton International Limited
Triton International Limited is the world’s largest lessor of intermodal freight containers. With a container fleet of 6.2 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.

Contact
Andrew Greenberg
Senior Vice President
Finance & Investor Relations
(914) 697-2900

3

The following table sets forth the equipment fleet utilization for the periods indicated:

	
															
 	Quarter Ended	
 	September 30, 2018	 	June 30, 2018	 	March 31, 2018	 	December 31, 2017	 	September 30, 2017	
Average Utilization (1)	98.7	%	 	98.8	%	 	98.6	%	 	98.3	%	 	97.6	%	
Ending Utilization (1)	98.6	%	 	98.7	%	 	98.7	%	 	98.6	%	 	98.0	%	
		
(1)	Utilization is computed by dividing total units on lease (in cost equivalent units, or "CEUs") by the total units in fleet (in CEUs), excluding new units not yet leased and off-hire units designated for sale.	

The following table summarizes the equipment fleet as of September 30, 2018 , December 31, 2017 and September 30, 2017 :

																		
 	Equipment Fleet in Units	 	Equipment Fleet in TEU	
 	September 30, 2018	 	December 31, 2017	 	September 30, 2017	 	September 30, 2018	 	December 31, 2017	 	September 30, 2017	
Dry	3,336,793		 	3,077,144		 	2,997,356		 	5,464,515		 	5,000,043		 	4,873,026		
Refrigerated	228,559		 	218,429		 	217,121		 	440,164		 	419,673		 	417,138		
Special	94,038		 	89,066		 	89,219		 	169,870		 	159,172		 	159,243		
Tank	12,284		 	12,124		 	11,948		 	12,284		 	12,124		 	11,948		
Chassis	23,396		 	22,523		 	22,522		 	42,911		 	41,068		 	41,062		
Equipment leasing fleet	3,695,070		 	3,419,286		 	3,338,166		 	6,129,744		 	5,632,080		 	5,502,417		
Equipment trading fleet	14,513		 	10,510		 	10,998		 	23,182		 	16,907		 	17,993		
Total	3,709,583		 	3,429,796		 	3,349,164		 	6,152,926		 	5,648,987		 	5,520,410		

	
									
 	Equipment in CEU	
 	September 30, 2018	 	December 31, 2017	 	September 30, 2017	
Operating leases	7,208,106		 	6,678,282		 	6,544,960		
Finance leases	318,607		 	328,024		 	334,121		
Equipment trading fleet	53,730		 	51,762		 	55,483		
Total	7,580,443		 	7,058,068		 	6,934,564		

4

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," "believe," "project," "anticipate," "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: uncertainty as to the long-term value of Triton's common shares; 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 for a substantial portion of our revenues; 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 the 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 increased tariffs and other trade actions; disruption to our operations from failures of, or attacks on, our information technology systems; our compliance or failure to comply with laws and regulations related to economic and trade sanctions, security, anti-terrorism, environmental protection and corruption; our ability to obtain sufficient capital to support our growth; restrictions on our businesses imposed by the terms of our debt agreements; changes in tax laws in the United States and other countries and other risks and uncertainties, including those risk factors set forth in the section entitled "Risk Factors" to in our Form 10-K filed with the Securities and Exchange Commission ("SEC"), on February 27, 2018 , 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-

5

TRITON INTERNATIONAL LIMITED
Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)

								
 	September 30,
2018	 	December 31,
2017	
ASSETS:	 	 	 	
Leasing equipment, net of accumulated depreciation of $2,556,600 and $2,218,897	$	9,208,539		 	$	8,364,484		
Net investment in finance leases	255,750		 	295,891		
Equipment held for sale	50,976		 	43,195		
Revenue earning assets	9,515,265		 	8,703,570		
Cash and cash equivalents	75,177		 	132,031		
Restricted cash	127,282		 	94,140		
Accounts receivable, net of allowances of $3,085 and $3,002	220,460		 	199,876		
Goodwill	236,665		 	236,665		
Lease intangibles, net of accumulated amortization of $192,286 and $144,081	106,171		 	154,376		
Other assets	32,199		 	49,591		
Fair value of derivative instruments	35,278		 	7,376		
Total assets	$	10,348,497		 	$	9,577,625		
LIABILITIES AND SHAREHOLDERS' EQUITY:	 	 	 	
Equipment purchases payable	$	127,755		 	$	128,133		
Fair value of derivative instruments	820		 	2,503		
Accounts payable and other accrued expenses	108,277		 	109,999		
Net deferred income tax liability	254,649		 	215,439		
Debt, net of unamortized debt costs of $43,263 and $40,636	7,472,846		 	6,911,725		
Total liabilities	7,964,347		 	7,367,799		
Shareholders' equity:	 	 	 	
Common shares, $0.01 par value, 294,000,000 shares authorized, 80,851,188 and 80,687,757 shares issued, respectively	809		 	807		
Undesignated shares, $0.01 par value, 6,000,000 shares authorized, no shares issued and outstanding	—		 	—		
Treasury shares, at cost, 33,700 shares and no shares, respectively	(1,115	)	 	—		
Additional paid-in capital	895,461		 	889,168		
Accumulated earnings	1,321,547		 	1,159,367		
Accumulated other comprehensive income	40,781		 	26,942		
Total shareholders' equity	2,257,483		 	2,076,284		
Non-controlling interests	126,667		 	133,542		
Total equity	2,384,150		 	2,209,826		
Total liabilities and equity	$	10,348,497		 	$	9,577,625		

6

TRITON INTERNATIONAL LIMITED
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

																
 	Three Months Ended September 30,	 	Nine Months Ended September 30,	
 	2018	 	2017	 	2018	 	2017	
Leasing revenues:	 	 	 	 	 	 	 	
Operating leases	$	346,461		 	$	296,669		 	$	981,646		 	$	832,414		
Finance leases	3,617		 	5,451		 	13,300		 	17,247		
Total leasing revenues	350,078		 	302,120		 	994,946		 	849,661		
 	 	 	 	 	 	 	 	
Equipment trading revenues	25,292		 	11,974		 	56,766		 	30,213		
Equipment trading expenses	(19,482	)	 	(10,605	)	 	(43,971	)	 	(27,124	)	
Trading margin	5,810		 	1,369		 	12,795		 	3,089		
 	 	 	 	 	 	 	 	
Net gain on sale of leasing equipment	7,055		 	10,263		 	27,378		 	25,063		
Net gain on sale of building	—		 	—		 	20,953		 	—		
 	 	 	 	 	 	 	 	
Operating expenses:	 	 	 	 	 	 	 	
Depreciation and amortization	141,337		 	128,581		 	405,664		 	370,552		
Direct operating expenses	11,489		 	13,833		 	32,732		 	51,396		
Administrative expenses	19,964		 	21,233		 	60,321		 	66,268		
Transaction and other (income) costs	2		 	32		 	(28	)	 	3,340		
Provision for doubtful accounts	677		 	783		 	551		 	1,244		
Total operating expenses	173,469		 	164,462		 	499,240		 	492,800		
Operating income	189,474		 	149,290		 	556,832		 	385,013		
Other expenses:	 	 	 	 	 	 	 	
Interest and debt expense	82,502		 	73,795		 	236,627		 	208,076		
Realized (gain) loss on derivative instruments, net	(608	)	 	20		 	(1,348	)	 	902		
Unrealized (gain) loss on derivative instruments, net	322		 	629		 	(975	)	 	(80	)	
Write-off of debt costs	1,348		 	4,073		 	1,851		 	4,116		
Other expense (income), net	492		 	164		 	(752	)	 	(1,552	)	
Total other expenses	84,056		 	78,681		 	235,403		 	211,462		
Income before income taxes	105,418		 	70,609		 	321,429		 	173,551		
Income tax expense	9,789		 	11,063		 	36,182		 	29,688		
Net income	$	95,629		 	$	59,546		 	$	285,247		 	$	143,863		
Less: income attributable to noncontrolling interest	1,393		 	2,390		 	5,249		 	6,425		
Net income attributable to shareholders	$	94,236		 	$	57,156		 	$	279,998		 	$	137,438		
Net income per common share—Basic	$	1.18		 	$	0.76		 	$	3.50		 	$	1.85		
Net income per common share—Diluted	$	1.17		 	$	0.75		 	$	3.47		 	$	1.84		
Cash dividends paid per common share	$	0.52		 	$	0.45		 	$	1.49		 	$	1.35		
Weighted average number of common shares outstanding—Basic	80,064		 	75,214		 	80,026		 	74,245		
Dilutive restricted shares and share options	664		 	493		 	594		 	402		
Weighted average number of common shares outstanding—Diluted	80,728		 	75,707		 	80,620		 	74,647		

7

TRITON INTERNATIONAL LIMITED
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

								
 	Nine Months Ended September 30,	
 	2018	 	2017	
Cash flows from operating activities:	 	 	 	
Net income	$	285,247		 	$	143,863		
Adjustments to reconcile net income to net cash provided by operating activities:	 	 	 	
Depreciation and amortization	405,664		 	370,552		
Amortization of deferred financing cost and other debt related amortization	10,070		 	10,185		
Lease related amortization	54,965		 	70,423		
Share-based compensation expense	7,412		 	4,491		
Net (gain) on sale of leasing equipment	(27,378	)	 	(25,063	)	
Net (gain) on sale of building	(20,953	)	 	—		
Unrealized (gain) on derivative instruments	(975	)	 	(80	)	
Write-off of debt cost	1,851		 	4,116		
Deferred income taxes	34,636		 	28,372		
Changes in operating assets and liabilities:	 	 	 	
Accounts receivable	(21,440	)	 	(3,928	)	
Accounts payable and other accrued expenses	(3,469	)	 	(36,198	)	
Net equipment sold for resale activity	(6,031	)	 	5,292		
Cash received for settlement of interest rate swaps	—		 	2,117		
Other assets	(578	)	 	648		
Net cash provided by operating activities	719,021		 	574,790		
Cash flows from investing activities:	 	 	 	
Purchases of leasing equipment and investments in finance leases	(1,347,202	)	 	(1,185,481	)	
Proceeds from sale of equipment, net of selling costs	122,100		 	136,647		
Proceeds from the sale of building	27,630		 	—		
Cash collections on finance lease receivables, net of income earned	45,164		 	45,146		
Other	(103	)	 	67		
Net cash (used in) investing activities	(1,152,411	)	 	(1,003,621	)	
Cash flows from financing activities:	 	 	 	
Issuance of common shares, net of underwriter expenses	—		 	192,932		
Redemption of common shares for withholding taxes	(1,117	)	 	(71	)	
Debt issuance costs	(12,492	)	 	(32,738	)	
Borrowings under debt facilities	2,118,637		 	2,782,825		
Payments under debt facilities and capital lease obligations	(1,563,947	)	 	(2,334,409	)	
Dividends paid	(119,280	)	 	(99,586	)	
Distributions to noncontrolling interests	(12,123	)	 	(14,273	)	
Other	—		 	1,130		
Net cash provided by financing activities	409,678		 	495,810		
Net (decrease) increase in cash, cash equivalents and restricted cash	$	(23,712	)	 	$	66,979		
Cash, cash equivalents and restricted cash, beginning of period	226,171		 	163,492		
Cash, cash equivalents and restricted cash, end of period	$	202,459		 	$	230,471		
Supplemental disclosures:	 	 	 	
Interest paid	$	213,577		 	$	184,081		
Supplemental non-cash investing activities:	 	 	 	
Equipment purchases payable	$	127,755		 	$	94,052		

8

Use of Non-GAAP Financial Measures

We use the term " Adjusted net income " throughout this press release.

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 shareholders excluding the write-off of debt costs net of tax, gains and losses on interest rate swaps net of tax, transaction and other costs net of tax, certain non-recurring transactions net of tax, and foreign income tax adjustments.

Adjusted net income is not a presentation made in accordance with U.S. GAAP. Adjusted net income should not be considered as an alternative to, or more meaningful than, amounts determined in accordance with U.S. GAAP, including net income.

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

•	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 shareholders, the most directly comparable U.S. GAAP measure, to Adjusted net income in the table below for the three and nine months ended September 30, 2018 and September 30, 2017 and for the three months ended June 30, 2018 .

9

	
																				
TRITON INTERNATIONAL LIMITED
Non-GAAP Reconciliations of Adjusted Net Income
(In thousands, except per share amounts)	
 	 	 	 	
 	Three Months Ended,	 	Nine Months Ended,	
 	September 30, 2018	 	June 30, 2018	 	September 30, 2017	 	September 30, 2018	 	September 30, 2017	
Net income attributable to shareholders	$	94,236		 	$	104,870		 	$	57,156		 	$	279,998		 	$	137,438		
Adjustments:	 	 	 	 	 	 	 	 	 	
Unrealized loss (gain) on derivative instruments, net	286		 	(100	)	 	515		 	(866	)	 	(66	)	
Transaction and other (income) costs	2		 	(1	)	 	60		 	(25	)	 	2,769		
Write-off of debt costs	1,197		 	447		 	3,377		 	1,644		 	3,412		
Foreign income tax adjustment	(881	)	 	—		 	(393	)	 	(881	)	 	(393	)	
Gain on sale of building	—		 	(16,316	)	 	—		 	(16,316	)	 	—		
Adjusted net income	$	94,840		 	$	88,900		 	$	60,715		 	$	263,554		 	$	143,160		
Adjusted net income per common share—Basic	$	1.18		 	$	1.11		 	$	0.81		 	$	3.29		 	$	1.93		
Adjusted net income per common share—Diluted	$	1.17		 	$	1.10		 	$	0.80		 	$	3.27		 	$	1.92		
Weighted average number of common shares outstanding—Basic	80,064		 	80,044		 	75,214		 	80,026		 	74,245		
Weighted average number of common shares outstanding—Diluted	80,728		 	80,655		 	75,707		 	80,620		 	74,647		

	
																				
TRITON INTERNATIONAL LIMITED
Calculation of Return on Equity
(In thousands)	
 	 	 	 	
 	Three Months Ended,	 	Nine Months Ended,	
 	September 30, 2018	 	June 30, 2018	 	September 30, 2017	 	September 30, 2018	 	September 30, 2017	
Adjusted net income	$	94,840		 	$	88,900		 	$	60,715		 	$	263,554		 	$	143,160		
Annualized Adjusted net income (1)	376,267		 	356,577		 	240,880		 	352,371		 	191,404		
 	 	 		 	 	 	 	 	 	
Beginning Shareholders' equity	2,202,601		 	2,133,505		 	1,683,470		 	2,076,284		 	1,663,233		
Ending Shareholders' equity	2,257,483		 	2,202,601		 	1,900,028		 	2,257,483		 	1,900,028		
Average Shareholders' equity	$	2,230,042		 	$	2,168,053		 	$	1,791,749		 	$	2,166,884		 	$	1,781,631		
 	 	 	 	 	 	 	 	 	 	
Return on equity	16.9	%	 	16.4	%	 	13.4	%	 	16.3	%	 	10.7	%	
		
(1)	Annualized Adjusted net income was calculated based on calendar days per quarter.	

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