Triton International Limited (NYSE:TRTN) Q3 2022 Earnings Conference Call November 1, 2022 8:00 AM ET

Company Participants

Brian Sondey - Chairman and Chief Executive Officer

John Burns - Senior Vice President and Chief Financial Officer

John O'Callaghan - Executive Vice President and Global Head of Field Marketing and Operations

Conference Call Participants

Ken Hoexter - Bank of America

Larry Solow - CJS Securities

Nick Giles - B. Riley Securities

Michael Brown - KBW

Operator

Good day, and welcome to the Triton International Limited Third Quarter 2022 Earnings Conference Call. [Operator instructions] Please note today’s event is being recorded. Now I'd like to turn the conference over to John Burns, Chief Financial Officer. Please go ahead.

John Burns

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 Sondey, 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 Investors section of our website under Investor presentation. I'd like to direct you to Slide 2 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.

Brian Sondey

Thanks John. And welcome to Triton International’s third quarter 2022 earnings conference call. I’ll start with slide 3 of 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 an annualize 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.