(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| ||||||||
Triton International Limited | |||||||||||
Date: May 3, 2022 | By: | /s/ John Burns | |||||||||
Name: | John Burns | ||||||||||
Title: | Chief Financial Officer |
(in millions, except per share data) | |||||||||||||||||
Three Months Ended, | |||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||
Total leasing revenues | $417.1 | $417.2 | $346.7 | ||||||||||||||
GAAP | |||||||||||||||||
Net income attributable to common shareholders | $181.2 | $177.4 | $129.3 | ||||||||||||||
Net income per share - Diluted | $2.78 | $2.67 | $1.92 | ||||||||||||||
Non-GAAP (1) | |||||||||||||||||
Adjusted net income | $179.6 | $177.5 | $128.7 | ||||||||||||||
Adjusted net income per share - Diluted | $2.76 | $2.67 | $1.91 | ||||||||||||||
Adjusted return on equity (2) | 30.3 | % | 30.7 | % | 25.0 | % |
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 |
Quarter Ended | |||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | |||||||||||||||||||||||||
Average Utilization (1) | 99.6 | % | 99.6 | % | 99.6 | % | 99.4 | % | 99.1 | % | |||||||||||||||||||
Ending Utilization (1) | 99.5 | % | 99.6 | % | 99.6 | % | 99.5 | % | 99.3 | % |
Equipment Fleet in Units | Equipment Fleet in TEU | ||||||||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||||||||||||||||||
Dry | 3,850,167 | 3,843,719 | 3,417,293 | 6,546,249 | 6,531,816 | 5,711,032 | |||||||||||||||||||||||||||||
Refrigerated | 234,274 | 235,338 | 232,550 | 455,261 | 457,172 | 450,087 | |||||||||||||||||||||||||||||
Special | 92,184 | 92,411 | 94,266 | 168,687 | 169,004 | 171,781 | |||||||||||||||||||||||||||||
Tank | 11,734 | 11,692 | 11,339 | 11,734 | 11,692 | 11,339 | |||||||||||||||||||||||||||||
Chassis | 23,711 | 24,139 | 24,078 | 44,272 | 44,554 | 43,858 | |||||||||||||||||||||||||||||
Equipment leasing fleet | 4,212,070 | 4,207,299 | 3,779,526 | 7,226,203 | 7,214,238 | 6,388,097 | |||||||||||||||||||||||||||||
Equipment trading fleet | 56,161 | 53,204 | 60,242 | 90,090 | 83,692 | 93,514 | |||||||||||||||||||||||||||||
Total | 4,268,231 | 4,260,503 | 3,839,768 | 7,316,293 | 7,297,930 | 6,481,611 | |||||||||||||||||||||||||||||
Equipment in CEU(1) | |||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||
Operating leases | 7,250,246 | 7,291,769 | 6,892,129 | ||||||||||||||
Finance leases | 666,690 | 623,136 | 297,168 | ||||||||||||||
Equipment trading fleet | 85,686 | 81,136 | 92,570 | ||||||||||||||
Total | 8,002,622 | 7,996,041 | 7,281,867 |
Lease Portfolio | By CEU | By Net Book Value | ||||||||||||
Long-term leases | 72.4 | % | 73.0 | % | ||||||||||
Finance leases | 8.6 | 15.0 | ||||||||||||
Subtotal | 81.0 | 88.0 | ||||||||||||
Service leases | 5.0 | 3.7 | ||||||||||||
Expired long-term leases, non-sale age (units on hire) | 6.9 | 4.9 | ||||||||||||
Expired long-term leases, sale-age (units on hire) | 7.1 | 3.4 | ||||||||||||
Total | 100.0 | % | 100.0 | % |
Three Months Ended, | |||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||
Operating leases | |||||||||||||||||
Per diem revenues | $ | 377,514 | $ | 383,529 | $ | 331,252 | |||||||||||
Fee and ancillary revenues | 11,431 | 11,092 | 8,542 | ||||||||||||||
Total operating lease revenues | 388,945 | 394,621 | 339,794 | ||||||||||||||
Finance leases | 28,143 | 22,541 | 6,949 | ||||||||||||||
Total leasing revenues | $ | 417,088 | $ | 417,162 | $ | 346,743 |
March 31, 2022 | December 31, 2021 | ||||||||||
ASSETS: | |||||||||||
Leasing equipment, net of accumulated depreciation of $4,048,194 and $3,919,181 | $ | 9,945,967 | $ | 10,201,113 | |||||||
Net investment in finance leases | 1,696,543 | 1,558,290 | |||||||||
Equipment held for sale | 79,061 | 48,746 | |||||||||
Revenue earning assets | 11,721,571 | 11,808,149 | |||||||||
Cash and cash equivalents | 71,969 | 106,168 | |||||||||
Restricted cash | 121,431 | 124,370 | |||||||||
Accounts receivable, net of allowances of $1,144 and $1,178 | 293,442 | 294,792 | |||||||||
Goodwill | 236,665 | 236,665 | |||||||||
Lease intangibles, net of accumulated amortization of $284,111 and $281,340 | 14,346 | 17,117 | |||||||||
Other assets | 38,989 | 50,346 | |||||||||
Fair value of derivative instruments | 36,401 | 6,231 | |||||||||
Total assets | $ | 12,534,814 | $ | 12,643,838 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY: | |||||||||||
Equipment purchases payable | $ | 56,804 | $ | 429,568 | |||||||
Fair value of derivative instruments | 2,906 | 48,277 | |||||||||
Deferred revenue | 90,417 | 92,198 | |||||||||
Accounts payable and other accrued expenses | 69,490 | 70,557 | |||||||||
Net deferred income tax liability | 387,211 | 376,009 | |||||||||
Debt, net of unamortized costs of $65,069 and $63,794 | 8,727,432 | 8,562,517 | |||||||||
Total liabilities | 9,334,260 | 9,579,126 | |||||||||
Shareholders' equity: | |||||||||||
Preferred shares, $0.01 par value, at liquidation preference | 730,000 | 730,000 | |||||||||
Common shares, $0.01 par value, 270,000,000 shares authorized, 81,367,045 and 81,295,366 shares issued, respectively | 814 | 813 | |||||||||
Undesignated shares, $0.01 par value, 800,000 shares authorized, no shares issued and outstanding | — | — | |||||||||
Treasury shares, at cost, 16,686,873 and 15,429,499 shares, respectively | (602,526) | (522,360) | |||||||||
Additional paid-in capital | 901,150 | 904,224 | |||||||||
Accumulated earnings | 2,139,777 | 2,000,854 | |||||||||
Accumulated other comprehensive income (loss) | 31,339 | (48,819) | |||||||||
Total shareholders' equity | 3,200,554 | 3,064,712 | |||||||||
Total liabilities and shareholders' equity | $ | 12,534,814 | $ | 12,643,838 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Leasing revenues: | |||||||||||
Operating leases | $ | 388,945 | $ | 339,794 | |||||||
Finance leases | 28,143 | 6,949 | |||||||||
Total leasing revenues | 417,088 | 346,743 | |||||||||
Equipment trading revenues | 34,120 | 25,945 | |||||||||
Equipment trading expenses | (29,979) | (17,804) | |||||||||
Trading margin | 4,141 | 8,141 | |||||||||
Net gain on sale of leasing equipment | 28,969 | 21,967 | |||||||||
Operating expenses: | |||||||||||
Depreciation and amortization | 160,716 | 143,307 | |||||||||
Direct operating expenses | 6,220 | 9,370 | |||||||||
Administrative expenses | 21,300 | 20,921 | |||||||||
Provision (reversal) for doubtful accounts | (27) | (2,464) | |||||||||
Total operating expenses | 188,209 | 171,134 | |||||||||
Operating income (loss) | 261,989 | 205,717 | |||||||||
Other expenses: | |||||||||||
Interest and debt expense | 54,510 | 54,623 | |||||||||
Unrealized (gain) loss on derivative instruments, net | (439) | — | |||||||||
Debt termination expense | 36 | — | |||||||||
Other (income) expense, net | (308) | (481) | |||||||||
Total other expenses | 53,799 | 54,142 | |||||||||
Income (loss) before income taxes | 208,190 | 151,575 | |||||||||
Income tax expense (benefit) | 13,932 | 11,737 | |||||||||
Net income (loss) | $ | 194,258 | $ | 139,838 | |||||||
Less: dividend on preferred shares | 13,028 | 10,513 | |||||||||
Net income (loss) attributable to common shareholders | $ | 181,230 | $ | 129,325 | |||||||
Net income per common share—Basic | $ | 2.79 | $ | 1.93 | |||||||
Net income per common share—Diluted | $ | 2.78 | $ | 1.92 | |||||||
Cash dividends paid per common share | $ | 0.65 | $ | 0.57 | |||||||
Weighted average number of common shares outstanding—Basic | 64,887 | 66,935 | |||||||||
Dilutive restricted shares | 267 | 282 | |||||||||
Weighted average number of common shares outstanding—Diluted | 65,154 | 67,217 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 194,258 | $ | 139,838 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 160,716 | 143,307 | |||||||||
Amortization of deferred debt cost and other debt related amortization | 3,526 | 1,142 | |||||||||
Lease related amortization | 3,013 | 4,857 | |||||||||
Share-based compensation expense | 2,556 | 1,715 | |||||||||
Net (gain) loss on sale of leasing equipment | (28,969) | (21,967) | |||||||||
Unrealized (gain) loss on derivative instruments | (439) | — | |||||||||
Debt termination expense | 36 | — | |||||||||
Deferred income taxes | 5,193 | 11,615 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (23,835) | (20,300) | |||||||||
Deferred revenue | 35,237 | 9,472 | |||||||||
Accounts payable and other accrued expenses | 4,143 | 1,886 | |||||||||
Net equipment sold (purchased) for resale activity | (7,749) | 1,579 | |||||||||
Cash received (paid) for settlement of interest rate swaps | 12,178 | 5,558 | |||||||||
Cash collections on finance lease receivables, net of income earned | 28,745 | 12,866 | |||||||||
Other assets | 10,061 | 9,420 | |||||||||
Net cash provided by (used in) operating activities | 398,670 | 300,988 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of leasing equipment and investments in finance leases | (511,027) | (579,211) | |||||||||
Proceeds from sale of equipment, net of selling costs | 57,274 | 53,512 | |||||||||
Other | (135) | 15 | |||||||||
Net cash provided by (used in) investing activities | (453,888) | (525,684) | |||||||||
Cash flows from financing activities: | |||||||||||
Purchases of treasury shares | (81,720) | — | |||||||||
Debt issuance costs | (5,507) | (13,803) | |||||||||
Borrowings under debt facilities | 932,600 | 1,504,850 | |||||||||
Payments under debt facilities and finance lease obligations | (766,686) | (979,199) | |||||||||
Dividends paid on preferred shares | (13,028) | (10,513) | |||||||||
Dividends paid on common shares | (41,950) | (38,153) | |||||||||
Other | (5,629) | (4,146) | |||||||||
Net cash provided by (used in) financing activities | 18,080 | 459,036 | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (37,138) | 234,340 | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | 230,538 | 151,996 | |||||||||
Cash, cash equivalents and restricted cash, end of period | 193,400 | 386,336 | |||||||||
Supplemental disclosures: | |||||||||||
Interest paid | $ | 39,127 | $ | 42,133 | |||||||
Income taxes paid (refunded) | $ | 137 | $ | 155 | |||||||
Supplemental non-cash investing activities: | |||||||||||
Equipment purchases payable | $ | 56,804 | $ | 342,357 |
TRITON INTERNATIONAL LIMITED Non-GAAP Reconciliations of Adjusted Net Income (In thousands, except per share amounts) | |||||||||||||||||
Three Months Ended, | |||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||
Net income attributable to common shareholders | $ | 181,230 | $ | 177,426 | $ | 129,325 | |||||||||||
Add (subtract): | |||||||||||||||||
Unrealized loss (gain) on derivative instruments, net | (439) | — | — | ||||||||||||||
Debt termination expense | 36 | 1,119 | — | ||||||||||||||
State and other income tax adjustments | — | (957) | — | ||||||||||||||
Tax benefit from vesting of restricted shares | (1,184) | (40) | (643) | ||||||||||||||
Adjusted net income | $ | 179,643 | $ | 177,548 | $ | 128,682 | |||||||||||
Adjusted net income per common share—Diluted | $ | 2.76 | $ | 2.67 | $ | 1.91 | |||||||||||
Weighted average number of common shares outstanding—Diluted | 65,154 | 66,541 | 67,217 |
TRITON INTERNATIONAL LIMITED Calculation of Adjusted Return on Equity (In thousands) | |||||||||||||||||
Three Months Ended, | |||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||
Adjusted net income | $ | 179,643 | $ | 177,548 | $ | 128,682 | |||||||||||
Annualized Adjusted net income (1) | 728,552 | 704,402 | 521,877 | ||||||||||||||
Average Shareholders' equity (2)(3) | $ | 2,402,633 | $ | 2,291,791 | $ | 2,090,133 | |||||||||||
Adjusted return on equity | 30.3% | 30.7% | 25.0% |
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