Triton International Limited (NYSE:TRTN) Q2 2020 Earnings Conference Call - Final Transcript

Jul 24, 2020 • 08:30 am ET

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Triton International Limited (NYSE:TRTN) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Hello and welcome to the Triton International Limited Second Quarter 2020 Earnings Release. [Operator Instructions].

I would now like to turn the conference over to John Burns, Chief Financial Officer. Mr. Burns. Please go ahead.

Executive
John Burns

Thank you, Keith. Good morning and thank you for joining us on today's call. We are here to discuss Triton's second quarter 2020 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 would like to note that our prepared remarks will follow along the presentation that can be found in the Investors section of our website under Investor Presentations.

I'd like to direct you to slide 2 of that presentation, and remind you that today's presentation includes forward-looking statements that reflects 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 reports on file with the SEC, concerning factors that could cause actual results to differ materially from those contained in these 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.

Executive
Brian Sondey

Thanks, John and welcome to Triton International's second quarter 2020 earnings conference call. Before I start with the main presentation, I would like to again thank all of our employees for their extraordinary efforts over the last few months. Our team has kept our processes running smoothly, and continue to provide great service to our customers, despite the personal and operational challenges presented by the pandemic. I would also like to thank our customers and suppliers for their close communication and ongoing support. We are proud to work with you in the vital effort to keep global supply chains functioning.

I'll now start the presentation with slide 3. Triton's performance was solid in the second quarter of 2020, despite the ongoing disruptions from the COVID-19 pandemic, and our outlook for the rest of the year has improved. Our customers estimate that trade volumes were down 15% or more at the start of the second quarter, and leasing demand in container pickups were limited. While container drop offs are moderate and our utilization remains at 95%.

Triton achieved solid results in the second quarter. Triton generated $60 million of adjusted net income or $0.86 per share and we achieved an annualized return on equity of 12.2%. The resilience of our operating and financial performance through this period of market turmoil highlights the stability of our business model, the strength of our long-term lease portfolio and the outperformance we can achieve as the clear market leader.

New container investments continue to be constrained in the second quarter, and our revenue earning