Triton Beats Q1 Expectation After M&A Announcement, Updates On Brookfield Deal

Triton International Ltd TRTN reported a first-quarter FY23 total leasing revenue decline of 4.6% year-over-year to $397.72 million, marginally beating the consensus of $397.55 million.
Adjusted EPS of $2.42 beat the consensus of $2.32.
Utilization averaged 97.6% in Q1 of FY23 and was 97.1% as of April 25, 2023.
The operating income decreased by 15.4% Y/Y to $221.55 million.
Triton generated $302.82 million in cash from operating activities, down from $398.67 million a year ago.
On April 12, 2023, Triton announced a deal to be acquired by Brookfield Infrastructure in a transaction likely to close in the fourth quarter of 2023.
Dividend: TRTN declared a quarterly cash dividend of $0.70 per common share, payable on June 22, to shareholders of record on June 8.
Triton repurchased 1.7 million common shares in Q1.
CEO Brian M. Sondey said, "While market conditions remain slow, our revenues and profitability are well protected by our strong long-term lease portfolio. Our utilization averaged 97.6% during the first quarter and currently stands at 97.1%. We are excited about our recent agreement to be acquired by Brookfield Infrastructure."
The company has suspended its share repurchase program in light of the pending transaction with Brookfield Infrastructure.
Price Action: TRTN shares traded lower by 0.34% at $82.30 on the last check Tuesday.