Triton International Limited (TRTN) Tops Q4 EPS by 28c, Revenues Miss

February 16, 2021 6:34 AM EST

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Triton International Limited (NYSE: TRTN) reported Q4 EPS of $1.70, $0.28 better than the analyst estimate of $1.42. Revenue for the quarter came in at $337.3 million versus the consensus estimate of $345.34 million.

Highlights

  • Net income attributable to common shareholders was $115.2 million in the fourth quarter of 2020, or $1.70 per diluted share.
  • Adjusted net income was $114.7 million in the fourth quarter of 2020, or $1.70 per diluted share, an increase of 49.1% per diluted share from the third quarter of 2020.
  • Net income attributable to shareholders was $288.4 million for the full year of 2020, or $4.16 per diluted share.
  • Adjusted net income was $319.9 million for the full year of 2020, or $4.61 per diluted share, an increase of 0.9% from 2019.
  • Trade volumes and container demand were exceptionally strong in the fourth quarter. Utilization increased 1.5% during the quarter to reach 98.9% as of December 31, 2020. Utilization averaged 98.1% for the fourth quarter of 2020 and 96.2% for the full year 2020.
  • Triton purchased $861.8 million of new and sale leaseback containers for delivery in 2020; almost $550 million of these containers were accepted in the fourth quarter. As of February 9, 2021, Triton has ordered approximately $1.7 billion of containers for delivery in 2021. Most of these containers have already been committed to leases.
  • Triton repurchased 1.4 million common shares during the fourth quarter and repurchased 5.1 million common shares during the full year of 2020. Triton has purchased over 13.9 million common shares since the inception of the program in August 2018.
  • Triton's Board of Directors announced a quarterly dividend of $0.57 per common share payable on March 26, 2021 to shareholders of record as of March 12, 2021.

Outlook

Mr. Sondey continued, "We are carrying a significant amount of operating and financial momentum into 2021. Trade activity and demand for containers remain very strong, and we have approximately 600,000 TEU of new containers booked for pick-up in the first half of 2021. Current price quotes for new container orders are in the range of $3,500 for a 20' dry container, market leasing rates are well above our portfolio average, and used container sale prices continue to increase."

"We expect our Adjusted EPS in the first quarter of 2021 will hold fairly steady or slightly increase from the record results we achieved in the fourth quarter of 2020. In the first quarter, we will benefit from a full quarter of near-maximum utilization and a large number of new containers going on-hire as they are produced. These benefits will be offset by fewer revenue days and a decrease in the number of used container disposals due to our much lower inventory level. While it is difficult to predict how long the surge in container demand will last, we expect the benefits from the large number of containers already placed on high value leases along with our improved leasing margins from attractive financing activity will be durable. We expect our Adjusted EPS for the full year of 2021 will be well above our Adjusted EPS in 2020, and we expect our Return on equity will remain high."

For earnings history and earnings-related data on Triton International Limited (TRTN) click here.



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