Triton International Reports First Quarter ADJUSTED EPS OF $0.99 AND INCREASES THE QUARTERLY DIVIDEND $0.07 TO $0.52

The following excerpt is from the company's SEC filing.

Hamilton, Bermuda –

May 4, 2018

– Triton International Limited (NYSE: TRTN) ("Triton")

First Quarter Highlights:

Triton reported Net income attributable to shareholders of

$80.9 million

Triton reported Adjusted net income of

$79.8 million

per diluted share.

Container pick-up activity was solid and drop-offs were exceptionally low leading to average utilization of

for the

quarter of

Triton announced a quarterly dividend of

per share payable on

June 22, 2018

to shareholders of record as of

June 1, 2018

Financial Results

The following table summarizes Triton’s selected key financial information for the

months ended

March 31, 2018

December 31, 2017

March 31, 2017

(in millions, except per share data)

Three Months Ended,

March 31, 2018

March 31, 2017

Total leasing revenues

$315.1

$313.9

$265.6

$207.2

Net income per share - Diluted

Adjusted net income per share - Diluted

Return on equity

Included in Net income attributable to shareholders for the three months ended

is a one-time tax benefit of $139.4 million recognized as a result of the reduction in the U.S. statutory corporate tax rate as part of the Tax Cuts and Jobs Act.

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

Triton's definition and calculation of Return on equity is annualized Adjusted net income divided by average shareholders' equity for the period.

Operating Performance

“Triton’s strong results in the first quarter of 2018 were supported by favorable market conditions and outstanding operational performance,” commented Brian Sondey, Chief Executive Officer of Triton. “We generated

in Adjusted net income for the quarter, a sequential increase of 16.8%, which is particularly impressive given our first quarter typically represents a seasonally slow quarter and has the fewest number of revenue days. We are off to a great start to the year, and look forward to carrying the momentum forward as we head toward the peak shipping season.”

“Our key operating metrics remain strong. Container pick-up and deal activity was solid in the first quarter despite the seasonality, while container drop-offs remained exceptionally low. Our utilization increased 10 basis points during the quarter to reach

as of

, and our utilization currently stands at

. New container prices held firm in the quarter, while used container sale prices increased, reflecting very low inventories of sale containers. We also benefited from a reduction in our average tax rate during the quarter as a result of corporate tax legislation enacted at the end of last year. We expect our average tax rate will remain in the 10-12% range for the full year of 2018. We have purchased over

$850 million

of containers for delivery in 2018, which puts us on track for another year of successful investment and growth.”

Outlook

Mr. Sondey continued, “We expect market conditions to remain favorable. Trade growth is anticipated to remain positive, and many of our customers continue to rely heavily on leasing for new container additions to their fleets. The inventory of new containers has increased in the run up to the peak shipping season, but the availability of used leasing containers is exceptionally low, which has kept the overall supply and demand balance for containers favorable. Overall, we expect Adjusted net income to increase gradually throughout 2018.”

Dividend

Triton’s Board of Directors has approved and declared a

per share quarterly cash dividend on its issued and outstanding common shares, payable on

to shareholders of record at the close of business on

Mr. Sondey concluded, “Our $0.52 per share quarterly dividend represents a 15% increase from our previous dividend level. The increase reflects the strength of our cash flow as well as our optimistic outlook for continued strong performance.”

Investors’ Webcast

Triton will hold a Webcast at 8:30 a.m. (New York time) on

Friday, May 4, 2018

to discuss its

quarter results. To listen by phone, please dial 1-866-524-3159 (domestic) or 1-412-317-6759 (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

5.7 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

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

Quarter Ended

September 30, 2017

June 30, 2017

Average Utilization

Ending Utilization

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

Equipment Fleet in Units

Equipment Fleet in TEU

3,103,671

3,077,144

2,825,562

5,039,302

5,000,043

4,585,569

Refrigerated

221,810

218,429

219,837

426,335

419,673

422,280

Special

90,867

89,066

91,702

163,155

159,172

163,080

12,188

12,124

11,958

Chassis

22,477

22,523

22,115

40,996

41,068

40,218

Equipment leasing fleet

3,451,013

3,419,286

3,171,174

5,681,976

5,632,080

5,223,105

Equipment trading fleet

12,022

10,510

20,280

19,245

16,907

31,290

3,463,035

3,429,796

3,191,454

5,701,221

5,648,987

5,254,395

Equipment in CEU

Operating leases

6,752,636

6,678,282

6,295,201

Finance leases

329,659

328,024

360,869

53,454

51,762

74,638

7,135,749

7,058,068

6,730,708

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; 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 SEC, on

February 27, 2018

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)

ASSETS:

Leasing equipment, net of accumulated depreciation of $2,329,870 and $2,218,897

8,439,971

8,364,484

Net investment in finance leases

286,358

295,891

Equipment held for sale

42,690

43,195

Revenue earning assets

8,769,019

8,703,570

Cash and cash equivalents

118,272

132,031

Restricted cash

128,720

94,140

Accounts receivable, net of allowances of $2,873 and $3,002

199,297

199,876

Goodwill

236,665

Lease intangibles, net of accumulated amortization of $161,641 and $144,081

136,816

154,376

Other assets

69,495

49,591

Fair value of derivative instruments

22,662

Total assets

9,680,946

9,577,625

LIABILITIES AND SHAREHOLDERS' EQUITY:

Equipment purchases payable

125,978

128,133

Accounts payable and other accrued expenses

109,657

109,999

Net deferred income tax liability

227,727

215,439

Debt, net of unamortized debt costs of $42,982 and $40,636

6,952,815

6,911,725

Total liabilities

7,416,177

7,367,799

Shareholders' equity:

Common shares, $0.01 par value, 294,000,000 shares authorized, 80,815,752 and 80,687,757 shares issued and outstanding, respectively

Undesignated shares, $0.01 par value, 6,000,000 shares authorized, no shares issued and outstanding

Additional paid-in capital

890,857

889,168

Accumulated earnings

1,206,848

1,159,367

Accumulated other comprehensive income

34,992

26,942

Total shareholders' equity

2,133,505

2,076,284

Non-controlling interests

131,264

133,542

Total equity

2,264,769

2,209,826

Total liabilities and equity

Consolidated Statements of Operations

(In thousands, except per share amounts)

Three Months Ended March 31,

Leasing revenues:

310,231

259,585

315,097

265,602

Equipment trading revenues

13,375

Equipment trading expenses

(10,384

(5,092

Trading margin

Net gain on sale of leasing equipment

Operating expenses:

Depreciation and amortization

130,433

117,880

Direct operating expenses

11,048

21,954

Administrative expenses

19,582

22,967

Transaction and other (income) costs

(Benefit) provision for doubtful accounts

Total operating expenses

160,933

165,847

Operating income

166,373

105,308

Other expenses:

Interest and debt expense

75,098

63,504

Realized (gain) loss on derivative instruments, net

Unrealized gain on derivative instruments, net

(1,186

(1,498

Other income, net

Total other expenses

73,005

61,863

Income before income taxes

93,368

43,445

Income tax expense

10,503

82,865

36,303

Less: income attributable to noncontrolling interest

80,892

34,611

Net income per common share—Basic

Net income per common share—Diluted

Cash dividends paid per common share

Weighted average number of common shares outstanding—Basic

79,968

73,741

Dilutive restricted shares and share options

Weighted average number of common shares outstanding—Diluted

80,572

74,033

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Cash flows from operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Amortization of deferred financing costs and other debt related amortization

Lease related amortization

18,166

24,138

Share-based compensation expense

Net (gain) on sale of leasing equipment

(9,218

(5,161

Unrealized (gain) on derivative instruments

Deferred income taxes

Changes in operating assets and liabilities:

(1,071

(6,269

(3,978

Net equipment sold for resale activity

(5,185

(8,893

Net cash provided by operating activities

231,464

162,941

Cash flows from investing activities:

Purchases of leasing equipment and investments in finance leases

(258,668

(265,706

Proceeds from sale of equipment, net of selling costs

38,885

34,988

Cash collections on finance lease receivables, net of income earned

14,771

15,580

Net cash used in by investing activities

(204,957

(215,543

Cash flows from financing activities:

Redemption of common shares for withholding taxes

Debt issuance costs

(4,976

(7,517

Borrowings under debt facilities

510,210

388,253

Payments under debt facilities and capital lease obligations

(469,841

(260,475

Dividends paid

(36,008

(33,183

Distributions to noncontrolling interest

(4,249

(4,898

Net cash (used in) provided by financing activities

(5,686

82,180

Net increase in cash, cash equivalents and restricted cash

20,821

29,578

Cash, cash equivalents and restricted cash, beginning of period

226,171

163,492

Cash, cash equivalents and restricted cash, end of period

246,992

193,070

Supplemental disclosures:

Interest paid

56,571

49,043

Supplemental non-cash investing activities:

200,728

We use the term "

" 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 deferred financing costs net of tax, gains and losses on interest rate swaps net of tax, transaction and other costs net of tax, and any foreign income and withholding tax adjustments.

is not a presentation made in accordance with U.S. GAAP.

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

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

, the most directly comparable U.S. GAAP measure, to

in the table below for the

Non-GAAP Reconciliations of Adjusted Net Income

(In Thousands, except per share amounts)

December 31, 2017

207,160

(1,052

(1,084

(1,252

Write-off of deferred financing costs

One-time tax benefit related to U.S. statutory rate reduction

(139,359

Insurance recovery income

(5,567

79,814

68,339

35,425

Adjusted net income per share - Basic

Weighted average number of common shares outstanding - Basic

79,936

Weighted average number of common shares outstanding - Diluted

80,556

Calculation of Return on Equity

(In Thousands)

Annualized Adjusted net income

323,690

271,128

143,668

Beginning Shareholders' equity

1,900,028

1,663,233

Ending Shareholders' equity

1,672,925

Average Shareholders' equity

2,104,895

1,988,156

1,668,079

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

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Other recent filings from the company include the following:

Triton International Ltd director just disposed of 1,850,000 shares - Sept. 7, 2018
Triton International Ltd director just disposed of 1,850,000 shares - Sept. 7, 2018

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