Triton International Limited

Good day and welcome to the Triton International Limited third quarter 2021 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to John Burns, Chief Financial Officer. Please go ahead.

Thank you, Matt. Good morning and thank you for joining us on today's call. We are here to discuss Triton's third quarter 2021 results, which were reported this morning. Joining me on this morning's call from Triton is Brian Sundy, 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 with the presentation that can be found in the investor section of our website. I'd like to direct you to the 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, industry conditions. These forward-looking statements are subject to various risks and uncertainties. Triton 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 on our earnings release and the presentation. With these formalities out of the way, I will now turn the call over to Brian.

Thanks, John. and welcome to Triton International's third quarter 2021 earnings conference call. I'll start with slide three of our presentation. Triton achieved outstanding results in the third quarter of 2021. We generated $2.43 of adjusted net income per share, an increase of 14% from the second quarter, and we achieved an annualized return on equity of almost 30%. Our outstanding results in the third quarter were driven by strong growth in our recurring leasing revenues and a significant reduction in our average effective interest rate due to our refinancing activity. We expect our adjusted earnings per share in the fourth quarter will increase slightly from our outstanding performance in the third quarter. Our excellent results are being supported by very favorable market conditions. Strong trade volumes and ongoing logistical disruptions continue to drive exceptional container demand. And this exceptional demand is driving very high prices for new and used containers and exceptionally high container utilization and leasing rates. Triton has locked in durable enhancements to our business. We have purchased over $3.4 billion of containers for delivery in 2021, which will lead to nearly 30% asset growth this year. These containers have been placed on long-duration, high ROE leases and will underpin our profitability and cash flow for many years to come Our strong deal share this year also further secures our position as the go-to supplier in the industry and further extends our scale and unit cost advantages. We have completed our transition toward unsecured investment grade financing and we have meaningfully reduced our average effective interest rate with aggressive refinancing. We are also seeing a financial transformation of our customer base as the shipping lines used their extraordinary profitability this year to de-lever. Overall, our expected long-term financial performance has shifted meaningfully upwards. We continue to use our strong cash flow to drive shareholder value in a number of different ways. We have used most of our cash flow this year to fund massive value-added investments in our container fleet. Now that container deliveries have pushed past the traditional peak seasons, we have shifted some of our cash flow to share repurchases. We also announced an increase in our quarterly dividend to 65 cents per share. And we have done all this, massive fleet investment, renewed share repurchases, and an increased dividend while keeping our leverage comfortably in our historical range. I will now hand the call over to John O'Callaghan, our Global Head of Marketing and Operations.