Triton Outlook and Market Fundamentals
Non-GAAP Financial Information
We use the terms "Adjusted net income," "Adjusted EPS," "Adjusted return on equity," "cash flow before capex", "Adjusted tangible book value per share" and
other non-GAAP financial measures throughout this presentation. These items are not presented in accordance with U.S. GAAP and should not be considered
as alternatives to, or more meaningful than, amounts determined in accordance with U.S. GAAP, including net income, cash flow from operations or common
shareholders' equity. These measures may not be comparable to similarly titled measures used by other companies.
Adjusted net income is adjusted for certain items management believes are not representative of our operating performance. Adjusted net income is defined as
net income attributable to common shareholders excluding debt termination expenses net of tax, unrealized gains and losses on derivative instruments net of
tax, and foreign and other income tax adjustments.
We believe that Adjusted net income is useful to an investor in evaluating our operating performance because this item:
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is widely used by securities analysts and investors to measure a company's operating performance;
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helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the impact of certain
non-routine events which we do not expect to occur in the future; and
is used by our management for various purposes, including as measures of operating performance and liquidity, to assist in comparing
performance from period to period on a consistent basis, in presentations to our board of directors concerning our financial performance and as a
basis for strategic planning and forecasting.
Adjusted return on equity is adjusted annualized earnings divided by average shareholders' equity. Management utilizes return on equity in evaluating how
much profit the Company generates on the shareholders' equity in the Company and believes it is useful for comparing the profitability of companies in the
same industry.
Cash flow before capex (excluding certain items) is defined as income before income taxes plus unrealized (gain) loss on derivative instruments, net, debt
termination expense, depreciation and amortization, principal payments on finance leases and NBV of container disposals less cash taxes, preferred stock
dividends, and other non-recurring adjustments that we believe investors should consider in evaluating our cash flow results. Management utilizes this measure
when analyzing financial performance and making operating and strategic decisions.
Adjusted tangible book value per share is defined as shareholders equity, less goodwill and net swap assets plus net deferred tax liability, before purchase
accounting adjustments. Management utilizes this measure when analyzing financial performance and making operating and strategic decisions.
We have provided a reconciliation of the non-GAAP financial measures used in this presentation on the following pages.
Certain forward-looking information included in this presentation is provided only on a non-GAAP basis without a reconciliation of these measures to the mostly
directly comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation.
These items depend on highly variable factors, many of which may not be in our control, and which could vary significantly from future GAAP financial results.
Additionally, throughout this presentation, the combined financial information from 2016 and prior periods does not reflect results on a GAAP basis.
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