“Triton used our market-leading position and expanded operational capabilities to their full potential in 2021, as Triton helped our customers manage across
an exceptionally challenging operating environment.”
Brian M. Sondey
Letter to shareholders
BRIAN M. SONDEY
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Triton International had an extraordinary year in 2021. The COVID-19 pandemic created many challenges, but Triton continued to operate seamlessly and we provided critical support to our shipping line customers. In the process, Triton transformed his business. We have made massive investments in our container fleet, aggressively extended the terms of our leases and significantly reduced our borrowing costs. These strategic actions have led to a strong increase in our profitability and cash flow which we hope will be sustainable. While the global economy is subject
in the face of heightened uncertainty in 2022, Triton is showing significant operational and financial momentum, and we expect to deliver another exceptional year.
Year in review
Triton used our market-leading position and expanded operational capabilities to their full potential in 2021 as we helped our customers manage an exceptionally challenging operational environment.
Consumption of goods has rebounded well beyond pre-pandemic levels in 2021 as consumers continue to shift their consumption habits from services and experiences to goods. This rapid increase in the consumption of goods has led to strong growth in global containerized trade volumes. Container demand was further supported by significant logistical disruptions that slowed container turnaround times, such as declining port productivity, reduced trucking capacity and shortage of warehouse workers. Triton has provided critical container capacity to our customers throughout the year, and we estimate that the 1.1 million TEUs of new dry containers supplied by Triton in 2021 represented more than 40% of the total supplied by leasing companies last year.
“Triton’s strong operating performance in 2021, combined with the sharp decline in our funding costs, resulted in an almost 100% increase in our adjusted earnings per share. We also generated an adjusted return on equity of 28. 1%.”
Brian M. Sondey
Triton’s operational performance has been exceptional in 2021. Strong container demand has driven our fleet utilization to over 99%. The shortage of containers has resulted in very high rental rates in the market and exceptional gains on the sale of our old used containers. Triton has purchased over $3.6 billion worth of new containers for delivery in 2021, driving more than 30% growth in our revenue-generating assets, and Triton has placed these containers on leases with an average term of thirteen years.
Triton also transformed our capital structure in 2021. We were able to take advantage of very low long-term interest rates to effectively fund our aggressive asset growth, and we strategically refinanced more expensive existing facilities to further reduce our rate. of average effective interest. Our corporate debt ratings were upgraded by S&P Global Ratings and Fitch Ratings in 2021 to BBB-, and we have used this upgrade to shift a large portion of our debt to higher quality unsecured financing.
Triton’s strong operational performance in 2021, combined with the sharp decline in our funding costs, resulted in an almost 100% increase in our adjusted earnings per share. We also generated an adjusted return on equity of 28.1%.
2021 operational highlights
- 99.4% average utilization
- 118% increase in selling prices for used containers
- 1.1 million TEUs of new dry containers delivered
- 13 yearsaverage initial duration of leases for new containers
- 24-month increase in overall average lease term to 78 months (weighted by net book value)
2021 Financial Highlights*
- $7.22 GAAP EPS and $9.16 Adjusted EPS, up 99% from 2020
- Adjusted return on equity of 28.1% (“ROE”)
- $1.5 billion cash flow before capital expenditures
- 31.5% increase in income-generating assets
- Reduction of 0.90% of the average effective interest rate
* Adjusted earnings per share, adjusted return on equity and cash flow before capital expenditures as used in this letter to shareholders are non-GAAP financial measures. See pages 7, 9 and 10 for a more in-depth discussion of these measures.
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Triton International Ltd. published this content on March 16, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on Mar 16, 2022 6:47:06 PM UTC.
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