Triton International Reports Second Quarter 2021 Results and Declares Quarterly Dividend

HAMILTON, Bermuda--(BUSINESS WIRE)--July 27, 2021 – Triton International Limited (NYSE: TRTN) ("Triton")

Highlights:

  • Net income attributable to common shareholders for the three months ended June 30, 2021 was $54.7 million or $0.81 per diluted share, which includes $89.9 million of make-whole and other debt termination costs primarily related to the prepayment of $821.0 million of senior secured institutional notes.
  • Adjusted net income was $144.2 million or $2.14 per diluted share, an increase of 148.8% from the second quarter of 2020 and 12.0% from the first quarter of 2021.
  • Trade volumes and container demand continued to be exceptionally strong in the second quarter. We placed over 400,000 TEU of new containers on-hire during the quarter and utilization increased to 99.5% as of June 30, 2021.
  • As of July 23, 2021, Triton has purchased over $3.4 billion of new containers for delivery in 2021, most of which have already been committed to high value, long duration leases.
  • Triton issued $1.7 billion of senior secured investment grade bonds during the quarter at an average effective interest rate of 2.2%.
  • Triton's Board of Directors announced a quarterly dividend of $0.57 per common share payable on September 23, 2021 to shareholders of record as of September 9, 2021.

Financial Results

The following table summarizes Triton’s selected key financial information for the three and six months ended June 30, 2021 and 2020 and the three months ended March 31, 2021.

 

(in millions, except per share data)

 

Three Months Ended,

 

Six Months Ended,

 

June 30, 2021

 

March 31, 2021

 

June 30, 2020

 

June 30, 2021

 

June 30, 2020

Total leasing revenues

$369.8

 

 

$346.7

 

 

$321.4

 

 

$716.5

 

 

$642.9

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

 

Net income attributable to common shareholders

$54.7

 

 

$129.3

 

 

$60.1

 

 

$184.0

 

 

$127.3

 

Net income per share - Diluted

$0.81

 

 

$1.92

 

 

$0.86

 

 

$2.74

 

 

$1.80

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP(1)

 

 

 

 

 

 

 

 

 

Adjusted net income

$144.2

 

 

$128.7

 

 

$60.0

 

 

$272.9

 

 

$127.1

 

Adjusted net income per share - Diluted

$2.14

 

 

$1.91

 

 

$0.86

 

 

$4.06

 

 

$1.80

 

 

 

 

 

 

 

 

 

 

 

Return on equity (2)

26.6

%

 

25.0

%

 

12.2

%

 

26.0

%

 

12.6

%

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 record performance again in the second quarter of 2021," commented Brian M. Sondey, Chief Executive Officer of Triton. "We generated $2.14 of Adjusted earnings per share in the second quarter, an increase of 12.0% from the first quarter. We also achieved an annualized Return on equity of 26.6%."

"Triton's outstanding results in the second quarter reflect our success in capturing the many opportunities presented by the current very strong market conditions. Trade volumes remain strong and we continue to see incremental demand for containers due to operational disruptions that are slowing our customers' container turn-times. Our utilization increased to 99.5% as of June 30, 2021 and currently stands at 99.6%. New container prices and market lease rates increased further in the second quarter. Container factories are currently quoting over $3,800 for a new 20' dry container, and market lease rates for new containers are significantly higher than the average rates in our lease portfolio. Our average selling prices for used dry containers continued to increase as well, allowing us to generate significantly higher than expected disposal gains in the second quarter despite low disposal volumes."

"Triton is investing heavily in new containers to support our customers. Shipping lines continue to rely on the leasing market to fulfill a large portion of their container requirements, and Triton has secured a meaningful share of leasing transactions due to our industry-leading supply capability and our strong reputation for reliability. Triton has purchased over $3.4 billion of containers for delivery in 2021. Over $1.8 billion of these containers were delivered through the end of the second quarter. Most of the containers not yet delivered are pre-committed to attractive long-term leases. We estimate that our existing orders would translate to over 25% asset growth for Triton in 2021."

"Triton is highly focused on locking-in durable improvements to our business. The average lease duration for containers ordered in 2021 is 13 years. The overall average remaining duration of our long-term lease portfolio has extended to 55 months, and we expect it to extend further as the substantial amount of new containers we have ordered and pre-committed to lease are produced and go on-hire. The very large block of new containers on attractively priced long-term leases and extended lease durations for our container fleet will provide strong foundations to our profitability and cash flow for years to come."

"We also continue to significantly improve the profile of our capital structure. In March 2021, our corporate credit rating was upgraded to BBB- by S&P Global Ratings, reflecting our strong market and financial position. In the second quarter, we issued $1.7 billion of investment grade senior secured notes and prepaid $821.0 million of senior secured institutional notes with substantially higher interest rates. We incurred $89.9 million of make-whole fees and other debt termination costs primarily related to these prepayments, but we will recapture the vast majority of these fees through lower interest expense over the next several years. These prepayments will also facilitate a faster transition of our capital structure toward investment grade unsecured bonds, which should provide further cost and flexibility benefits and extend the advantages we have in our market."

Outlook

Mr. Sondey continued, "Market conditions remain very favorable as we head into the second half of the year. Trade volumes remain strong, operational disruptions continue to drive incremental demand for containers, and we typically experience peak dry container demand in the third quarter as retailers stock up for the back-to-school and holiday seasons. While we anticipate some shift in consumption patterns back to services and experiences as COVID-19 vaccinations are rolled out globally, economists are generally projecting a strong bounce to global GDP which typically supports growth in trade. We also have significant operational momentum with approximately 400,000 TEU of new containers pre-booked for pick-up in the third and fourth quarters."

"We expect our Adjusted EPS will increase from the second to the third quarter of 2021. We expect our leasing margin will increase significantly in the third quarter due to strong ongoing pick up activity and as we benefit from a full quarter of revenue from the large number of containers picked-up during the second quarter. We will also benefit from a lower average effective interest rate resulting from the prepayment of institutional notes. We expect our disposal volumes will decrease further due to very low container drop-off volumes, and we continue to anticipate this will lead to a decrease in our disposal gains from the current extraordinary levels, although it is also possible that further increases in used container selling prices could continue to offset the impact of decreasing volumes. Overall, we expect our profitability and cash flows will remain at very high levels for the foreseeable future due to the durable benefits from our strong leasing activity this year and we expect our net book value per share will increase rapidly due to our strong Return on equity."

Dividends

Triton’s Board of Directors has approved and declared a $0.57 per share quarterly cash dividend on its issued and outstanding common shares, payable on September 23, 2021 to shareholders of record at the close of business on September 9, 2021.

The Company's Board of Directors also approved and declared a cash dividend payable on September 14, 2021 to holders of record at the close of business on September 7, 2021 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

Investors’ Webcast

Triton will hold a Webcast at 8:30 a.m. (New York time) on Tuesday, July 27, 2021 to discuss its second 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 6.9 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:

 

June 30, 2021

 

March 31, 2021

 

December 31, 2020

 

September 30, 2020

 

June 30, 2020

Average Utilization (1)

99.4

%

 

99.1

%

 

98.1

%

 

96.1

%

 

95.0

 

Ending Utilization (1)

99.5

%

 

99.3

%

 

98.9

%

 

97.4

%

 

94.8

 

(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 June 30, 2021, December 31, 2020 and June 30, 2020 (in units, TEUs and CEUs):

 

Equipment Fleet in Units

 

Equipment Fleet in TEU

 

June 30, 2021

 

December 31, 2020

 

June 30, 2020

 

June 30, 2021

 

December 31, 2020

 

June 30, 2020

Dry

3,604,794

 

 

3,295,908

 

 

3,215,482

 

 

6,084,381

 

 

5,466,421

 

 

5,287,639

 

Refrigerated

236,978

 

 

227,519

 

 

227,018

 

 

459,389

 

 

439,956

 

 

438,380

 

Special

93,238

 

 

93,885

 

 

93,996

 

 

170,259

 

 

170,792

 

 

170,977

 

Tank

11,513

 

 

11,312

 

 

12,439

 

 

11,513

 

 

11,312

 

 

12,439

 

Chassis

24,275

 

 

24,781

 

 

24,133

 

 

44,391

 

 

45,188

 

 

44,524

 

Equipment leasing fleet

3,970,798

 

 

3,653,405

 

 

3,573,068

 

 

6,769,933

 

 

6,133,669

 

 

5,953,959

 

Equipment trading fleet

53,802

 

 

64,243

 

 

79,778

 

 

84,455

 

 

98,991

 

 

123,377

 

Total

4,024,600

 

 

3,717,648

 

 

3,652,846

 

 

6,854,388

 

 

6,232,660

 

 

6,077,336

 

 

Equipment in CEU(1)

 

June 30, 2021

 

December 31, 2020

 

June 30, 2020

Operating leases

7,171,845

 

 

6,649,350

 

 

6,478,561

 

Finance leases

369,130

 

 

295,784

 

 

317,159

 

Equipment trading fleet

82,980

 

 

98,420

 

 

120,654

 

Total

7,623,955

 

 

7,043,554

 

 

6,916,374

 

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

 

Three Months Ended,

 

June 30, 2021

 

March 31, 2021

 

June 30, 2020

Operating leases

 

 

 

 

 

Per diem revenues

$

353,277

 

 

$

331,252

 

 

$

294,748

 

Fee and ancillary revenues

7,582

 

 

8,542

 

 

18,675

 

Total operating lease revenues

360,859

 

 

339,794

 

 

313,423

 

Finance leases

8,925

 

 

6,949

 

 

7,974

 

Total leasing revenues

$

369,784

 

 

$

346,743

 

 

$

321,397

 

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; our ability to obtain sufficient capital to support our growth; restrictions imposed by the terms of our debt agreements; the achievement of our capital structure plans and related timing; 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)

(Unaudited)

       

 

June 30, 2021

 

December 31, 2020

ASSETS:

 

 

 

Leasing equipment, net of accumulated depreciation of $3,637,089 and $3,370,652

$

9,971,257

 

 

$

8,630,696

 

Net investment in finance leases

499,272

 

 

282,131

 

Equipment held for sale

35,814

 

 

67,311

 

Revenue earning assets

10,506,343

 

 

8,980,138

 

Cash and cash equivalents

77,392

 

 

61,512

 

Restricted cash

127,484

 

 

90,484

 

Accounts receivable, net of allowances of $1,230 and $2,192

280,288

 

 

226,090

 

Goodwill

236,665

 

 

236,665

 

Lease intangibles, net of accumulated amortization of $273,753 and $264,791

24,704

 

 

33,666

 

Other assets

82,389

 

 

83,969

 

Fair value of derivative instruments

93

 

 

9

 

Total assets

$

11,335,358

 

 

$

9,712,533

 

LIABILITIES AND SHAREHOLDERS' EQUITY:

 

 

 

Equipment purchases payable

$

411,454

 

 

$

191,777

 

Fair value of derivative instruments

77,141

 

 

128,872

 

Accounts payable and other accrued expenses

124,444

 

 

95,235

 

Net deferred income tax liability

355,636

 

 

327,431

 

Debt, net of unamortized costs of $63,184 and $42,747

7,639,606

 

 

6,403,270

 

Total liabilities

8,608,281

 

 

7,146,585

 

 

 

 

 

Shareholders' equity:

 

 

 

Preferred shares, $0.01 par value, at liquidation preference

555,000

 

 

555,000

 

Common shares, $0.01 par value, 270,000,000 shares authorized, 81,294,902 and 81,151,723 shares issued, respectively

813

 

 

812

 

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

 

 

 

Treasury shares, at cost, 13,901,326 and 13,901,326 shares, respectively

(436,822

)

 

(436,822

)

Additional paid-in capital

906,186

 

 

905,323

 

Accumulated earnings

1,781,692

 

 

1,674,670

 

Accumulated other comprehensive income (loss)

(79,792

)

 

(133,035

)

Total shareholders' equity

2,727,077

 

 

2,565,948

 

Total liabilities and shareholders' equity

$

11,335,358

 

 

$

9,712,533

 

       

TRITON INTERNATIONAL LIMITED

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

       

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

Leasing revenues:

 

 

 

 

 

 

 

Operating leases

$

360,859

 

 

$

313,423

 

 

$

700,653

 

 

$

626,227

 

Finance leases

8,925

 

 

7,974

 

 

15,874

 

 

16,638

 

Total leasing revenues

369,784

 

 

321,397

 

 

716,527

 

 

642,865

 

 

 

 

 

 

 

 

 

Equipment trading revenues

33,183

 

 

16,903

 

 

59,128

 

 

32,283

 

Equipment trading expenses

(22,457

)

 

(14,883

)

 

(40,261

)

 

(28,330

)

Trading margin

10,726

 

 

2,020

 

 

18,867

 

 

3,953

 

 

 

 

 

 

 

 

 

Net gain on sale of leasing equipment

31,391

 

 

4,537

 

 

53,358

 

 

8,614

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Depreciation and amortization

154,056

 

 

133,292

 

 

297,363

 

 

265,987

 

Direct operating expenses

6,337

 

 

29,619

 

 

15,707

 

 

52,867

 

Administrative expenses

22,979

 

 

20,472

 

 

43,900

 

 

39,697

 

Provision (reversal) for doubtful accounts

(26

)

 

374

 

 

(2,490

)

 

4,653

 

Total operating expenses

183,346

 

 

183,757

 

 

354,480

 

 

363,204

 

Operating income (loss)

228,555

 

 

144,197

 

 

434,272

 

 

292,228

 

Other expenses:

 

 

 

 

 

 

 

Interest and debt expense

60,004

 

 

66,874

 

 

114,627

 

 

135,876

 

Debt termination expense

89,863

 

 

 

 

89,863

 

 

31

 

Other (income) expense, net

(261

)

 

36

 

 

(742

)

 

(3,548

)

Total other expenses

149,606

 

 

66,910

 

 

203,748

 

 

132,359

 

Income (loss) before income taxes

78,949

 

 

77,287

 

 

230,524

 

 

159,869

 

Income tax expense (benefit)

13,732

 

 

6,699

 

 

25,469

 

 

12,245

 

Net income (loss)

$

65,217

 

 

$

70,588

 

 

$

205,055

 

 

$

147,624

 

Less: dividend on preferred shares

10,513

 

 

10,513

 

 

21,026

 

 

20,338

 

Net income (loss) attributable to common shareholders

$

54,704

 

 

$

60,075

 

 

$

184,029

 

 

$

127,286

 

Net income per common share—Basic

$

0.82

 

 

$

0.87

 

 

$

2.75

 

 

$

1.81

 

Net income per common share—Diluted

$

0.81

 

 

$

0.86

 

 

$

2.74

 

 

$

1.80

 

Cash dividends paid per common share

$

0.57

 

 

$

0.52

 

 

$

1.14

 

 

$

1.04

 

Weighted average number of common shares outstanding—Basic

66,951

 

 

69,275

 

 

66,943

 

 

70,436

 

Dilutive restricted shares

331

 

 

261

 

 

295

 

 

262

 

Weighted average number of common shares outstanding—Diluted

67,282

 

 

69,536

 

 

67,238

 

 

70,698

 

   

TRITON INTERNATIONAL LIMITED

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

   

 

Six Months Ended June 30,

 

June 30, 2021

 

June 30, 2020

Cash flows from operating activities:

 

 

 

Net income (loss)

$

205,055

 

 

$

147,624

 

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

 

 

 

Depreciation and amortization

297,363

 

 

265,987

 

Amortization of deferred debt cost and other debt related amortization

4,255

 

 

7,187

 

Lease related amortization

9,549

 

 

15,788

 

Share-based compensation expense

5,010

 

 

5,861

 

Net (gain) loss on sale of leasing equipment

(53,358

)

 

(8,614

)

Unrealized (gain) loss on derivative instruments

 

 

286

 

Debt termination expense

89,863

 

 

31

 

Deferred income taxes

25,228

 

 

12,037

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

(12,707

)

 

(20,778

)

Accounts payable and other accrued expenses

(7,753

)

 

(25,752

)

Net equipment sold (purchased) for resale activity

8,787

 

 

(4,035

)

Cash received (paid) for settlement of interest rate swaps

5,481

 

 

 

Cash collections on finance lease receivables, net of income earned

27,124

 

 

46,650

 

Other assets

9,422

 

 

(25,703

)

Net cash provided by (used in) operating activities

613,319

 

 

416,569

 

Cash flows from investing activities:

 

 

 

Purchases of leasing equipment and investments in finance leases

(1,717,843

)

 

(219,788

)

Proceeds from sale of equipment, net of selling costs

117,688

 

 

102,088

 

Other

63

 

 

(328

)

Net cash provided by (used in) investing activities

(1,600,092

)

 

(118,028

)

Cash flows from financing activities:

 

 

 

Issuance of preferred shares, net of underwriting discount

 

 

145,275

 

Purchases of treasury shares

 

 

(95,243

)

Redemption of common shares for withholding taxes

(4,146

)

 

(2,156

)

Debt issuance costs

(31,502

)

 

 

Borrowings under debt facilities

5,663,432

 

 

730,000

 

Payments under debt facilities and finance lease obligations

(4,490,788

)

 

(801,044

)

Dividends paid on preferred shares

(21,026

)

 

(19,908

)

Dividends paid on common shares

(76,317

)

 

(72,964

)

Other

 

 

(590

)

Net cash provided by (used in) financing activities

1,039,653

 

 

(116,630

)

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

$

52,880

 

 

$

181,911

 

Cash, cash equivalents and restricted cash, beginning of period

151,996

 

 

168,972

 

Cash, cash equivalents and restricted cash, end of period

$

204,876

 

 

$

350,883

 

Supplemental disclosures:

 

 

 

Interest paid

$

106,182

 

 

$

131,457

 

Income taxes paid (refunded)

$

3,445

 

 

$

216

 

Right-of-use asset for leased property

$

1,453

 

 

$

196

 

Supplemental non-cash investing activities:

 

 

 

Equipment purchases payable

$

411,454

 

 

$

46,569

 

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 June 30, 2021, March 31, 2021, and June 30, 2020 and for the six months ended June 30, 2021 and June 30, 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,

 

Six Months Ended,

 

June 30, 2021

 

March 31, 2021

 

June 30, 2020

 

June 30, 2021

 

June 30, 2020

Net income attributable to common shareholders

$

54,704

 

 

$

129,325

 

 

$

60,075

 

 

$

184,029

 

 

$

127,286

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Unrealized loss (gain) on derivative instruments, net

 

 

 

 

12

 

 

 

 

282

 

Debt termination expense

89,485

 

 

 

 

 

 

89,485

 

 

24

 

State and other income tax adjustments

 

 

 

 

(85

)

 

 

 

(85

)

Tax benefit from vesting of restricted shares

 

 

(643

)

 

 

 

(643

)

 

(390

)

Adjusted net income

$

144,189

 

 

$

128,682

 

 

$

60,002

 

 

$

272,871

 

 

$

127,117

 

Adjusted net income per common share—Diluted

$

2.14

 

 

$

1.91

 

 

$

0.86

 

 

4.06

 

 

1.80

 

Weighted average number of common shares outstanding—Diluted

67,282

 

 

67,217

 

 

69,536

 

 

67,238

 

 

70,698

 

TRITON INTERNATIONAL LIMITED

Calculation of Return on Equity

(In thousands)

 

 

 

 

 

 

 

Three Months Ended,

 

Six Months Ended,

 

June 30, 2021

 

March 31, 2021

 

June 30, 2020

 

June 30, 2021

 

June 30, 2020

Adjusted net income

$

144,189

 

 

$

128,682

 

 

$

60,002

 

 

$

272,871

 

 

$

127,117

 

Annualized Adjusted net income (1)

578,340

 

 

521,877

 

 

240,667

 

 

550,265

 

 

255,631

 

 

 

 

 

 

 

 

 

 

 

Average Shareholders' equity (2)(3)

$

2,170,698

 

 

$

2,090,133

 

 

$

1,974,600

 

 

$

2,117,448

 

 

$

2,025,479

 

 

 

 

 

 

 

 

 

 

 

Return on equity

26.6%

 

25.0%

 

12.2%

 

26.0%

 

12.6%

(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 six-month ended periods.

(3)

Average Shareholders' equity was adjusted to exclude preferred shares.

 

Andrew Greenberg

Senior Vice President

Business Development & Investor Relations

(914) 697-2900

Source: Triton International Limited

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