Post Earnings Coverage as Triton’s Revenue Soared 63%; Earnings Rocketed 114%

Upcoming AWS Coverage on AMERCO Post-Earnings Results

LONDON, UK / ACCESSWIRE / June 1, 2017 / Active Wall St. announces its post-earnings coverage on Triton International Ltd (NYSE: TRTN) (“Triton”). The Company posted its first quarter fiscal 2017 financial results on May 11, 2017. The shipping container leasing Company surpassed earnings expectations. Register with us now for your free membership at:

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One of Triton International’s competitors within the Rental & Leasing Services space, AMERCO (NASDAQ: UHAL), reported on May 24, 2017, its net earnings available to shareholders for FY17 which ended on March 31, 2017. AWS will be initiating a research report on AMERCO in the coming days.

Today, AWS is promoting its earnings coverage on TRTN; touching on UHAL. Get our free coverage by signing up to:

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Earnings Reviewed

For the three months ended March 31, 2017, Triton’s revenue were $265.60 million compared to revenue of $163.03 million in Q1 2016. The Company’s Leasing revenue increased over 2% on a y-o-y basis, despite two less billable days in the reported quarter, or 4.6% on a constant day basis. This improvement was driven by an increase in average on hires of 152,000 units, contributing to the 1.7% increase in average utilization. This was partially offset by a drop in fee and ancillary revenue as strong market conditions led to a sharp drop in new deliveries and related fees.

During Q1 2017, Triton’s average container utilization increased 1.7% compared to Q4 2016, and its utilization currently stands at 96.4%. The Company generated $42.7 million of adjusted pre-tax income in the reported quarter, which includes approximately $6.2 million of net negative impacts from purchase accounting. Triton’s adjusted pre-tax income increased over $20 million from the previous quarter, reflecting significant improvement in its key operating metrics.

Triton reported net income for Q1 2017 of $36.30 million, or $0.47 per diluted share, compared to net income of $10.07 million, or $0.22 per share, for Q1 2016. The Company’s earnings, adjusted for non-recurring costs totaled $0.48 per share. Triton’s results surpassed Wall Street’s expectations of $0.41 per share.

“We are very pleased with Triton’s solid start to 2017, in which we clearly benefited from our market-leading scale, cost structure and operational capabilities,” commented Brian M. Sondey, Triton’s Chairman and Chief Executive Officer.

Cash Matters

For Q1 2017, Triton recorded a gain on disposals of $5.2 million versus a loss of $4.3 million in Q4 2016. This improvement in gain on sale was driven by a 14% increase in average disposal prices during the reported quarter.

In the earning press release, Triton’s Board of Directors has approved and declared a $0.45 per share quarterly cash dividend on its issued and outstanding common shares, payable on June 22, 2017, to shareholders of record at the close of business on June 01, 2017.

Outlook

For Q2 2017, Triton expects favorable market conditions to continue to provide positive earnings momentum. The Company expects Leasing revenue to benefit from continued improvements in utilization, as depot units and further Hanjin recovered units go on-hire.

On the expense side, Triton anticipates ongoing improvements as administrative expenses decline, reflecting lower third-party fees as its integration-related activities phase out. The Company also expects continued reduction in direct operating expenses as repair and storage expenses benefit from lower redeliveries and further increases in utilization.

Lastly, Triton is forecasting net negative impact in purchase accounting to drop to between $2 million and $3 million in the upcoming quarter before becoming neutral to slightly positive during H2 2017.

Stock Performance

Triton International’s share price finished yesterday’s trading session at $28.02, advancing 1.23%. A total volume of 401.48 thousand shares exchanged hands. The stock has skyrocketed 11.46% in the last three months, 37.83% in the past six months, and 103.47% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 77.34%. The stock is trading at a PE ratio of 341.71 and has a dividend yield of 6.42%. At Wednesday’s closing price, the stock’s net capitalization stands at $2.06 billion.

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