Triton International Limited

Good day and welcome to the Triton International Limited third quarter 2022 earnings conference call. All participants will be in listen-only mode. Should you need assistance, 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 star then one on a touch-tone phone. To withdraw your question, please press star then two. Please note today's event is being recorded. I would now like to turn the conference over to John Burns, Chief Financial Officer. Please go ahead, sir.

Thank you. Good morning, and thank you for joining us on today's call. We are here to discuss Triton's third quarter 2022 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'd like to note that our prepared remarks will follow along with the 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. 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 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 third quarter 2022 earnings conference call. I'll start with slide three of our presentation. Triton continued to achieve outstanding results in the third quarter of 2022. We generated $2.88 of adjusted net income per share, up 18.5% from the third quarter of last year, and down just slightly from our record results last quarter. We also achieved and annualized return on equity of 27.5%. Our market environment slowed during the third quarter, following nearly two years of exceptional container demand. Peak season shipping volumes were muted this summer, and many of our customers have increased the pace of container drop-offs. New container orders have decreased across the market, and new container prices and market leasing rates have returned to historically normal levels. Used container sale prices have started to normalize more quickly, though they're still very high. While conditions have softened, we expect our strong performance will continue. We have significant operational and financial advantages in our market. Our utilization remains very high, and our container fleet is well protected by our strong long-term lease portfolio. The large number of containers we purchased over the last few years are locked away on long duration high IRR leases. We've increased the share of our containers on lifecycle leases and increased the average remaining duration of our lease portfolio. And we have locked in low-cost financing with long-term fixed-rate debt. We continue to aggressively use our strong cash flow to drive shareholder value. We have shifted our investment focus this year from fleet growth to share repurchases. We have purchased over 7.1 million shares year-to-date, representing nearly 11 percent of our outstanding shares at the beginning of the year, while also decreasing our leverage. We increased the pace of our buybacks in the third quarter and have just re-upped our repurchase authorization back to $200 million. We also announced an increase in our quarterly common dividend from 65 cents to 70 cents per share. We expect our financial performance will remain strong. We expect our adjusted earnings per share will decrease from the third to the fourth quarter as our utilization and gains on sale continue to normalize. But we expect our utilization will remain high and expect share repurchases will remain highly accretive. Overall, we expect our cash flow, profitability, and return on equity will remain very high through the rest of this year and into the longer term. I will now hand the call over to John O'Callaghan, our Global Head of Marketing and Operations. Thank you, Brian.