Triton International Limited

Good morning and welcome to the Triton International Limited fourth quarter 2020 earnings release conference call. All participants will be in listen-only mode. If you need assistance today, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press stars and one on your telephone keypad. To withdraw your question, please press stars and two. Please note today's event is being recorded. I would now like to turn the conference over to John Burns. Please go ahead, sir.

Thank you, Rocco. Good morning, and thank you for joining us on today's call. We are here to discuss Triton's fourth quarter and full year 2020 results, which were reported this morning. Joining me on this morning's call from Triton is Brian Saunders, our CEO, and John O'Callaghan, our head of global marketing and operations. Before I turn the call over to Brian, I would like to note that our prepared remarks will follow along a presentation that can be found in the investor section of our website under investor presentations. I'd like to direct you to slide two of that presentation and remind you that today's presentation includes forward looking statements that reflect Triton's current view with respect to future events, financial performance, and industry conditions. These forward looking statements are subject to various risks and uncertainties. Brighton has provided additional information in its reports on file with the SEC concerning factors that could cause actual results to differ materially from those contained in this presentation, and we encourage you to review these factors. In addition, reconciliations of non-GAAP measures to the most directly comparable GAAP financial measures are included in our earnings release and the presentation. With these formalities out of the way, I'll now turn the call over to Brian.

Thanks, John. and welcome to Triton International's fourth quarter 2020 earnings conference call. I'll start with slide three of our presentation. Triton's outstanding results in the fourth quarter of 2020 provided a fantastic finish to a remarkable year. In the fourth quarter, we generated $1.70 of adjusted net income per share, an increase of almost 50% from the third quarter, and we achieved an annualized return on equity of 22.9%. For the full year of 2020, we generated adjusted EPS of $4.61 and achieved an adjusted return on equity at 15.9%. We did not anticipate having the opportunity to achieve this level of performance when the pandemic initially took hold. It's of course been a tragic and difficult time, but the changes in consumer spending patterns caused by the pandemic have led to a surge in trade and very strong demand for containers. We are pleased to have the opportunity to work closely with our customers to keep global supply chains functioning, and we are very proud of the way the Triton team has executed seamlessly through all the challenges and disruptions created by the pandemic. In 2020, Triton demonstrated the resilience of our business and our discipline and agility with capital management. Our financial performance held up very well in the first half of the year, while trade volumes were hit hard by the initial COVID lockdowns. and we focused our investment on share repurchases during this time. We then achieved exceptional operational and financial performance in the second half of the year as trade volume surged. We drove record levels of containers on hire, boosting our utilization to almost 99% by the end of the year. We also quickly pivoted our investment focus to aggressive fleet growth. We accepted $550 million of containers in the fourth quarter, and we're on pace for a record level of fleet investment in 2021. Market conditions remain very strong, and we are carrying significant momentum. Trade volumes remain well above pre-pandemic levels, and the supply of containers is tight. Our utilization is close to the maximum level, and we have almost 600,000 TEOF new containers booked for pickup in 2021. We expect our adjusted EPS will hold steady or increase slightly in the first quarter from the record level achieved in the fourth quarter of 2020, and we expect our profitability will remain at a high level throughout 2021. We expect the business and financial benefits from the current straw market will be durable. We have placed large numbers of containers onto well-priced, long-duration leases. We have expanded our leasing margins with attractive financing activity. and we have further secured our position as the go-to supplier in our industry. I want to hand the call over to John O'Callaghan, our global head of marketing and operations.