Good day and welcome to the Triton International Limited First Quarter 2021 Earnings Conference Call. Please note, this event is being recorded. I would now like to turn the conference over to John Burns. Please go ahead..

Thank you, Jordon. Good morning and thank you for joining us on today's call. We are here to discuss Triton's first quarter 2021 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 with the presentation that can be found in the Investor section of our website under Investor Presentation..

Thanks, John, and welcome to Triton International's first quarter 2021 earnings conference call. I will start with Slide 3 of our presentation. Triton achieved outstanding results in the first quarter 2021. We generated $1.91 of adjusted net income per share, an increase of 12% from the fourth quarter of last year.

And we achieved an annualized return on equity of 25%. Our excellent results in the first quarter were supported by very strong market conditions. The balance of container supply and demand remains highly favorable for us. And all of our key operating metrics are at a high level.

We are focused on locking in durable benefits from the current strong conditions. We are making large high value investments in our container fleet. We are placing our new and used containers on leases with very long durations.

And we are further securing our position as the go to supplier in the industry, through our unique ability to maybe even the largest and most urgent container needs of our customers. Triton's balance sheet is in great shape. Our leverage remains historically low despite our aggressive fleet investment.

Our corporate credit rating was recently upgraded the BBB- by Standard and Poor's. We continue to raise substantial amounts of efficient capital to support our fleet investments including our recent inaugural issuance of senior secured investment grade bonds.

We expect market conditions to remain strong as we move into the traditional summer peak season for dry containers. And we expect to continue to achieve outstanding results. I would now hand the call over to John O'Callaghan, our Global Head of Marketing and Operations..

Thank you, Brian..

Thank you, John. Turning to Page 9 on this page, we have presented our consolidated financial results. Adjusted net income for the first quarter was $128.7 million or $1.91 per share an increase of 12.4% from the fourth quarter, and over 100% from the prior year's first quarter. These exceptional results represent a return on equity of 25%.

Turning to Page 10. Our results in the first quarter reflect the benefits of the continued surge in container demand that started in the second half of last year and continues to generate strong leasing demand and exceptional disposal gains. We added $700 million of new containers in the first quarter, growing our fleet by 6.1% in just one quarter.

Lease revenue was up 2.8% over the fourth quarter, but normalizing for the two fewer days in the first quarter leasing revenue would have been up 5%. Average utilization increased 1% from the fourth quarter to average 99.1% and utilization is currently 99.4%.

This near maximum utilization levels drove down direct operating expenses by $5.5 million from the fourth quarter, largely due to lower container storage and repair expenses.

The container shortage and high new container prices continue to drive disposable gains to record levels, resulting in $30.1 million of gains on sale and trading margins in the first quarter, a jump of $4.7 million over the fourth quarter.

This increase was in spite of a roughly 50% decrease in disposal volumes as our available sale inventory has shrunk to exceptionally low levels due to limited container redeliveries. The current strong market conditions are also significantly enhancing the credit profile of our shipping line customers. Turning to Page 11.

On this page, we highlight our strong balance sheet, significant liquidity and our well structured debt portfolio. Our key leverage metric is net debt as a percentage of revenue earning assets. And this metric was approximately 70%, which is at the low end of our historical levels.

And our current strong cash flows will enable us to maintain our leverage at the low end of these historic levels despite the $2.6 billion of new container investment..

Thanks, John. Slide 14 shows how Triton building long-term value and locking in durable benefits through our aggressive fleet investment and our focus on long duration leases. The chart on the left show the expected growth of our revenue earning assets through the second quarter, we've ordered over $2.6 billion of containers to delivery in 2021.

And most of these containers are scheduled to be delivered by the end of July. The chart on the upper right puts our expected new container lease outs and average new container lease durations into recent historical context.

Based on our existing lease commitments, the pace of new container lease outs in the first half of 2021 should significantly exceed the pace we achieved during the strong markets in 2017 and 2018. Our average new container lease durations have also increased substantially.

The average lease duration for committed lease transactions is now over 12 years in 2021. These long leases lock in the current favorable economics for most of the containers life, which boosts our investment returns and reduces our exposure to weak market conditions in the future.

The chart on the lower right illustrates how we're using lifecycle leases to further protect our lease portfolio. Lifecycle leases are primarily used for use container pickups. Under our lifecycle lease, our customers agree to keep all containers on hirer until the end of their useful life, which eliminates the utilization risk for these containers.

And usually it's the extra revenue years. In return, we offer customers advantage pricing and maximum logistical flexibility at off-hire. Since last July, roughly 75% of our used dry container pickups were placed on lifecycle leases. And now about half of our total dry container fleet is covered by lifecycle leases.

I'll finish the presentation with Slide 15. Triton is off to a great start in 2021 and we expect market conditions to remain highly favorable. We expect our performance will remain strong. Our disposal gains may be increasingly constrained by very low disposal volumes.

But we expect strong growth in leasing revenue and expect our adjusted earnings per share will remain near the record level we achieved in the first quarter. Triton is also extending our leadership advantages.

Our aggressive fleet investment is extending our scale and cost advantages also further securing our position as the go to supplier in our industry. And the opportunity to transition our debt issuance toward investment grade bonds should provide a meaningful boost to our capital efficiency.

We are highly focused on locking in long-term benefits for our profitability and cash flow. Our substantial new container investments are being placed onto long duration, high-value leases. And the large number of used containers on life cycle leases will underpin our utilization for years to come. We'll now open up the call for questions..

Our first question comes from Ken Hoexter with Bank of America Merrill Lynch. Please go ahead..

Good morning, Brian, John. And John, I mean, this is obviously a great quarter. You talked about it last quarter in terms of how things were improving and utilization obviously can't get much higher. So what gets better from here? And how do you look out and continue to grow? Brian, we've been at this following you for more than a decade now.

And it just seems everything has come together right now post the acquisition, given the environment, given the upgrade, what - where is the risk to the model here? Is it just returning to the cycle and things that are on long-term lease become shorter going forward? Or I guess, what is the outlook for you from here?.

Yes. So thanks, Ken, and we are very pleased with where things are and think we continue to be really well positioned to benefit from what's happening in the world. And so in terms of where we go from here, I mean, the first thing is we have a lot of runway to go on the containers that we've purchased and the deals that we've done.

We've probably said a few times that we bought $2.6 billion of containers. And I think John Burns mentioned that something like $700 million of that was delivered and accepted in the first quarter. And so the vast majority is still to come in terms of delivery and pickup, and the vast majority of those containers are already committed to lease.

So there's certainly a long way to go in terms of leasing revenue growth and profitability growth just from the deals that we've already done and containers that are in the process of being produced.

And I think when we talk with our customers about where the market goes from here, I think there's obviously the markets, it's very strong for a number of reasons, and it's because of that, probably harder to predict than usual.

But I think the conventional wisdom and what we hear from customers and what you read, what they're saying about their results, is that there's an expectation that very strong conditions last deep into the year, likely, maybe even - certainly through the summer, likely into the fall and maybe through the year.

And so there's definitely room to play, I think, in this current environment. And then the thing that we keep trying to hopefully get across is that what we're doing right now in this current environment is going to create benefits that last for many years.

And so even if inevitably, the market comes back down to a normal balance of container supply and demand in the meantime, we've locked away billions of dollars of containers on very high value, very long duration leases, which as we see, it has shifted our likely performance range in the future, both shifted it upwards and narrowed the likely range between sort of good outcomes and less attractive outcomes in terms of the future state of the world.

And so we feel very excited about all of that. And then we're, again, very excited about the upgrade to our corporate ratings to BBB- and the path that, that gives us to be hopefully a more regular issue or investment grade bonds, hopefully also eventually unsecured investment grade bonds.

And that certainly further differentiates us in this industry, gives us a capital advantage to go on top of our operating and customer advantages. And so yes, we feel that - I mean, obviously, the world doesn't always stay in a way that's just perfect for us.

But again, we think we're making improvements in the business that will last for quite some time and also really further separating ourselves from the path when it comes to our capabilities and cost structure and customer positions and so on..

So just flipping to the bubble chart on Page 7, if you count for a second, which showed the trend of leasing transactions that O'Callaghan talked about.

Is that - if I look at the big bubbles kind of in the - a year ago, you were at 0.8% pricing, would those be on shorter-term leases that you have a chance to reprice and improve further? Or would those at the start of this cycle also have been on longer term leases?.

Yes. So certainly, on long-term leases, I think virtually all the deals that we've done since July were on kind of minimum 5 years. If you look at there's a chart we included back in my section, I think it's Page 14, which looks at the evolution of the lease terms over the last couple of years.

And yes, you see that the lease terms were still pretty long in the fourth quarter of last year, I think probably averaged 8 or 9 years, what we're doing in the third and fourth quarter.

One thing I'd say about that bubble chart is the size of the bubbles is a little bit confusing in the sense that we - because we wanted to track market conditions when it comes to leasing rates, we kind of located the deals from a size standpoint based upon when the deal was negotiated rather than when the containers are picked up.

And so you see the bubbles look bigger in the third and fourth quarters in 2020 than they do in 2021. But in fact, the pickups will be bigger in 2021..

Okay. And then lastly for me, I mean just phenomenal, seeing these still at 3,500 for new boxes.

Are we seeing a surge in leasing? Do you think, Brian, is that a suggestion from the liner companies that they're seeing the end of - I mean it's a conflicting question because are they seeing an end unless they're putting more on lease? Or are they putting lease just because it's a way to get access to boxes? Is there anything that you view in change just given how tight it is? Or is it just a land grab, it's just so tight.

I need to get boxes anyway I can.

Maybe just from your experience in looking through cycles, how do you view that now?.

Yes. I don't think there's a big connection between the price of containers right now and the amount that our customers are leasing.

In fact, if you look back to what was happening in the second half of last year when this market took off, the leasing share was also very high back then and container prices weren't really that high, at least not until the end of the year. And so I want to think a couple of things is going on.

One, we've said before, and we believe that a lot of the shipping lines have just made the decision that leasing is probably the way they want to bring most containers into their fleet. There's a lot of benefits they get from not having to plan so far in advance, especially to deal with surprising markets like this one.

And it's probably easier for us to maintain bigger inventories of available equipment because we can spread that risk across many customers where for an individual shipping line, they're taking all that speculative factory or certainly container additions on themselves.

And in addition, we've talked about how the extra cost of leasing relative to the cost of the customers owning and financing their own containers, that's come down a lot. As leasing companies has gotten bigger as our financing has become very efficient.

And so I think a lot of the lines have just decided leasing is just a sensible way to rely on adding containers. And then maybe just on top of that, what I mentioned earlier is just that at times, a greater uncertainty and less predictability, that's where leasing is even more valuable.

And because you can just - you can make decisions on short notice. And so I think that's what's happening. And so we're making big investments to make sure we have ready inventory. And because we see that valuable service to customers, it's how we're generating a lot of leasing share for ourselves. But it's something we think continues..

Wonderful. Appreciate the time and thoughts and a lot of things have certainly come together for you. So congrats. Thank you..

Yes. Thanks, again..

Our next question comes from Michael Brown with KBW. Please go ahead..

So Brian, I just wanted to maybe start off with a question, a little bit higher level here. I mean, obviously, it seems like disruption just continues to be a very persistent trend in theme in the shipping market, whether it's a canal being in a major issue in all over the news or port congestion and just general supply chain disruption.

So what I'm trying to parse out is really what is - in your view, what does this really mean for the shipping lines? Is this kind of like a secular trend where they just need to really run with more equipment than they had historically just to be better prepared for these one-off events that just seem to be much more frequent than they've been in the past.

So I'm just curious what you're hearing from the shipping lines and what your thoughts are there?.

Yes. So you're right. And certainly, we hear a lot about a variety of operational disruptions. Starting, I think, back when the lockdowns first started occurring with stranded containers, retailers and wholesalers holding on to containers is kind of almost like temporary warehousing.

And then probably that transitioning to then just the flood of containers overwhelming the ability of the ports to move containers in and out. And so that loaded containers coming in, we're getting prioritized, empty containers going out, we're not.

And then, yes, finally, the icing on the cake, the blockage of the Suez Canal, just slowing the flow of containers and acquiring more containers to be added in at the front end to handle the cargo that wanted to load.

And so all that is slowing down the velocity of containers and meaning the shipping lines need to box up to handle even more than they would, just based upon the growth in trade. What we hear is that most customers don't think these bottlenecks are going to evaporate quickly, but they also don't think they're necessarily permanent.

And so we're all trying to figure out is just what does that transition process look like? I haven't seen any of our customers express confidence that they can, say, within this current strong period, unbottleneck their operations.

And so I think our general view is it likely continues until trade slows and that - who knows exactly when that's going to be, but I think probably the bedding is sometime end of this year, early next year when maybe the trade world starts to get back towards normal. But again, that's just a guess.

From our standpoint, what that means is we just - we're always in look out for not just what is container supply and demand now, but what's it likely to be in the future. And no doubt, as bottlenecks ease, that could free up container capacity effectively and something that we need to think about. For what containers plying demand might be in 2022.

But overall, we're pretty optimistic about that. In the sense that trade - economic growth forecasts are right now quite optimistic for 2022, trade forecasts are pretty optimistic.

A lot of the container production that's happened this year, as John O'Callaghan pointed out, to some extent, is making up for low production volumes in 2019 and the first part of '20.

So - and then finally, we're never really that exposed to a sudden change in market conditions that the vast majority of our containers on long-term lease, the available inventory we have of unbooked new containers, it's meaningful in the sense of our ability to supply customers, but relative to overall fleet size is not that big.

And so there's a whole bunch of moving parts right now. We're trying to be mindful of all of them. But again, we feel we should be able to adapt pretty flexibly as the situation changes..

Yes, great. Thank you for all that color. Pretty comprehensive. If I change gears to the - a lot of the capital actions that you guys took on the balance sheet. So your interest expense is down over 20% year-over-year. So it's really great to see taking advantage of the rate environment here.

As we start to look forward, I just wanted to hear your thoughts about potential for any other actions that you guys can take here.

One area that jumps out to me is some of your preferreds with the higher relatively high dividend rates, is it possible for you to buy back some of those shares? I think that was part of your buyback authorization is to actually take out some of the preferreds if you find that economically attractive.

So it's just kind of one thought that came to mind. But just curious, what are the levers are at your disposal here? And then maybe just a question for John.

With all the moving pieces on the debt side, where is kind of the interest expense likely to land next quarter just to make sure we're kind of right in the right ballpark here?.

Well, Mike, let me take a crack at that and Brian chime in. Certainly, I think a number of things. We talked about - we're excited about what the upgrade by S&P provides for us.

There is a transition process that will take a little bit of time, but we do think that over time, there will be meaningful benefits transitioning to - again, we need to be successful on but getting there will provide meaningful improvement in our efficiency of capital or debt capital.

On the preferred side that you mentioned, would like to take out those, if we could. Unfortunately, there's a 5 year no call on the preferreds. But we do - we like that product. And again, we don't think of it as debt. We do think of it more as equity, the way it's structured. It's fixed for life. And there's no put.

So we think it's more equity-based so anyhow, overall, we - the ABS deals we did in the first quarter, the inaugural deal on the bond transaction, again, combined, 1.9%, really would be used funding.

A lot of the CapEx we talked about, that all beating will bring down our effective interest rate for the first quarter was about 3.3%, including the debt itself and amortization of fees. We expect that will come down to the high 2%.

And again, over time, we - hopefully, as we transition to the investment-grade bond market, that there's more opportunity there..

Yes. And I think as John pointed out, too, even though 3.3%, probably somewhat of a low point for us for an average effective interest rate over a while, it's quite a bit above where our marginal financing cost is.

We've been - for many years, reliant on fixed rate financing, which we think is a very good match against our fixed rate leases and so as interest rates have fallen really far, the balance sheet transitions slowly. But certainly, the incremental debt we're putting on is at rates below our averages.

And then maybe just one point on the preferred John mentioned, we'd love to call the preferred. And that's really just because the rates on those are higher than we could issue for today.

But we actually, as John mentioned, we do like the preferred as a part of our capital structure that we think, again, we don't think of it relative to the cost of our debt, we think of it mostly relative to the cost of our common equity. And again, as it looks like it provides a nice mix of sort of risk protection and overall capital costs..

Of course, yes. I certainly agree. And it's certainly cheaper than common. Maybe just one last one.

What are kind of the cash-on-cash yield that you guys are getting on these transactions? Obviously, the high prices and the strong demand on containers certainly probably supports very strong cash and cash yields and ROEs, but the fact that you're getting such long terms maybe is a bit of a have been offset there.

So just kind of curious what are the low double digits? Just what's the current market?.

Yes. So first thing I'd say is we typically don't focus that much on cash-on-cash returns. When we model our leases, it's much more in lifetime levered equity returns, and those remain stronger than usual in the upper teens in terms of a modeled lifetime equity return.

In terms of the cash on cash, I mean, you're right that we are focusing on long duration leases, which does have the effect of bringing the cash-on-cash yields down because of those durations. And so most of the, I guess, the - if we're doing 10, 11, 12-year leases, the cash-on-cash is in low double digits.

And - but again, we think just given those durations, that translates to quite attractive equity IRRS..

Our next question comes from Larry Solow with CJS Securities. Please go ahead...

It's actually Lee Jagoda for Larry. Great quarter. Just a couple of questions for me. I think you mentioned a bunch of times that you've ordered $2.6 billion of new containers so far this year. And obviously, $700 million got absorbed in Q1.

That being said, looking at your guidance for Q2 and then trying to understand the visibility for the balance of the year.

If all of these new containers are going to be absorbed over the next couple of quarters and you've got committed leases for them, why would Q2 only be sort of consistent with the Q1 levels? And why shouldn't we see more of a sequential uptick as we go through the year in terms of earnings?.

Yes. So certainly a good question. And we really think of it maybe in two pieces. And so most of our revenue and profitability is from leasing containers.

And the leasing revenue and leasing margin, we do expect to go up strongly sequentially through 2021 for the reasons you mentioned that we have thoughts and containers committed to leases that are going to be building up that lease revenue base and leasing margin base.

On the other hand, we've been making extraordinary gains on selling our used containers.

And we've got some charts, graphs that we showed, where you see the price for used containers has, I think, more than doubled on an absolute basis, which means the margin has probably gone up by a factor of 3 or 4, given that the gain is over a fixed residual value.

And it just so happens that we had enough containers in inventory to carry us through the end of 2020 and into 2021. We show a chart on Page 7 of the presentation, it looks like container pickups and drop offs. Which is in the upper right chart on that slide.

And if you look at the container drop off volume, like you can't even see the color on the picture. And it's that we're getting no one - I shouldn't say no, we're getting very, very few containers returned by customers because the containers they have are at a very big discount to the market leasing rates.

And typically, our leases don't require containers to be returned immediately when the lease expires. And so we're getting almost no containers back, which means we have very few containers that we can sell. And so we expect those large disposal gains to come down.

Just - we said price probably continue to go up, and the per unit gains are going to go up, but our volume is coming down very quickly.

And so what's happening is we see this growth in this recurring leasing revenue and recurring leasing margin, which is great, but that's going to be offset, at least for a little while, by a headwind of decreasing disposal games..

Got it. And then just thinking about your visibility in total and like you guys have done a phenomenal job since the middle of 2019 extending your lease durations from 5 years to what's going to be closer to 12 years here.

How should we think about your earnings run rate in terms of a lag when and if demand ultimately falls and utilization falls? And how long can you hold on to sort of the positive performance we're seeing now? And any way to kind of project out 3, 4 years in the face of a 12-year lease duration, like what a kind of normalized level of earnings might look like?.

Yes. So of course, we do a lot of that internally. We've got a forecast model for the business that's built up on a lease level basis and which allows us to do a lot of exploring on what does the - or what do these very long leases mean in terms of likely outcomes in the future for profitability.

And we typically do forecast our business 5, 6 years out to see what may happen given different states of the world. What we find is that if you were to look back 12 months ago at the sort of likely scenarios that we ran based upon future market conditions and look at the scenarios we're running today, that two things have happened.

One, our expected profitability has meaningfully shifted upwards.

And not because we're so much more confident what the world might look like in 2025, but just because we've built so much - we've locked in so much value and so much profitability and cash flow from all these leases that we're doing and from extending even our existing containers on very long-term leases.

And then the other thing that's happened is the gap between our more optimistic and more conservative cases in terms of what the world might look like that while our assumptions haven't changed, the impact on us has narrowed because, again, of that very large block of business that's locked in one way or the other.

Just - we don't give long-term guidance to the public. But basically, you could think of it as our view of the future has become more optimistic. And the gap between the good outcomes and more sort of challenging outcomes has narrowed quite a bit..

And one last one for me. I think one of the things you mentioned was as a result of being able to extend these customers in a favorable rate environment, you've sort of given the customers more flexibility on the back end of the lease.

I think as I remember it, one of your big competitive advantages was the ability to have customers return units to favorable locations to be easily leased out.

Has any of that changed as a result of the more favorable lease terms you're getting on your side?.

No, no. So that's still a very key part of our leasing structures. And that's why I think I was trying to differentiate, and I'm sorry if it wasn't very clear between normal leasing structures and life cycle leases.

And so for regular leasing structures where containers could be returned prior to their sale age, we're highly focused on making sure the containers come back to good demand locations, which these days, primarily Asia, mainly China.

And that tight logistical focus of ours is one of the reasons why we can maintain high utilization across different kinds of market cycles and across the container life. For life cycle leases, all the containers, by definition, will come back at the time the container is sale age.

And it just so happens that the sale market for containers is much more even globally. We can sell containers very effectively all over the world. And in fact, given our significant infrastructure and we can sell containers in far more locations than anybody else can in the world.

And that allows us to give customers the opportunity to return containers in the middle of Europe, in the middle of the U.S. and South America and Africa, which provides many or could provide significant backhaul savings for the customers.

And so part of the deal is, okay, we say to the customers, how you take these containers and rather putting on a 5-year lease, we'll put them on a lease that's flexible based upon the container age, and they all come back at the time the container is ready to sell.

And in return for that, we're going to give you probably a little bit better of a rate, and we're going to allow all the containers when you're ready to bring them back where you want to bring them back, rather than requiring you to bring them back where we want them to come back. And it's because we can sell them effectively anywhere..

Our next question comes from Dan Day with B. Riley FBR. Please go ahead..

Just a quick one, first, the direct operating expenses came down a lot, $9 million-ish for the quarter. Just as long as we're above the sort of 99% utilization rate, is that sort of the right number to think about? Or is there anything one timing in the first quarter that it was particularly low..

No. Thanks, Dan. No, those - that's right. That - the big expenses included in direct to op storage. So where utilization is, to your point and also, as we've mentioned a couple of times that the sales deck, which is not calculated and utilization is also an extraordinarily low level. So - and repairs is the other item.

And again, as Brian pointed out on that chart, very limited number of units coming back. Again, we don't anticipate that low level staying forever. But at this current state, I'd say you're probably getting to the bottom on the direct operating expenses and nothing unusual was in there in the quarter..

Just kind of capital allocation, obviously, you're putting on a ton of CapEx in the next few months. On the other side of this, say, next year, you guys were really well set up to generate a ton of cash.

Just can you remind us how you think about sort of maybe raising the dividend, buying back shares, just kind of what were on the other side of the CapEx, what the plan is to do with all of it? Thanks..

Yes. No, good question. And I can tell you that it's the very thing we talk about at our Board meetings. And right now, we see this opportunity continuing. And so we are mostly focused on investing right down the middle, buying containers to support our key customers and putting them on great leases.

And that's been our main focus for our capital in addition to paying our regular dividend, of course. To the extent we get to a market where growth is no longer at the current level and where CapEx is more normal, you're correct. At our current level of profitability, we're going to have a lot of extra cash flow at normal levels of investment.

And we would look at that time, think about what's the right use for that capital. We tend to be very flexible and very, I think, disciplined and thoughtful on how we allocate cash. And we've shifted from high CapEx to lower CapEx, from aggressive share buybacks, shifting back to CapEx.

And again, I think we'll continue to make decisions that make sense given the circumstances that we're in. And - but we'll be looking at that for sure when we get to the point where our CapEx is coming down..

And just last one.

Any update on maybe M&A, do you see any sort of acquisition targets out there? Or has this sort of strong market kind of tile off any appetite for M&A for the foreseeable future?.

Sure. I mean we can't talk, of course, about any particular M&A opportunities. We've said in the past that M&A is something that we are interested in doing that we got many benefits when we merged Tal and Triton. And we expect, if we did M&A in the future, that we would get benefits again.

And of course, it depends on having opportunities that are available. And again, we tend to be pretty disciplined on how we use our capital, and we want to make sure that they're using capital, whether it's cash or our stock for an M&A deal, that it was a valuable use for our shareholders.

But again, in general, we're interested, but of course, very hard to predict when and if something might come available..

This concludes the question-and-answer session. I would now like to turn the conference back over to Brian Sondey for any closing remarks..

I want to say thank you for joining our call, and thank you for your continued interest in Triton International. Thanks and good bye..

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect..