☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Bermuda | 98-1276572 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common shares, $0.01 par value per share | TRTN | New York Stock Exchange | ||||||
8.50% Series A Cumulative Redeemable Perpetual Preference Shares | TRTN PRA | New York Stock Exchange | ||||||
8.00% Series B Cumulative Redeemable Perpetual Preference Shares | TRTN PRB | New York Stock Exchange | ||||||
7.375% Series C Cumulative Redeemable Perpetual Preference Shares | TRTN PRC | New York Stock Exchange | ||||||
6.875% Series D Cumulative Redeemable Perpetual Preference Shares | TRTN PRD | New York Stock Exchange |
Large Accelerated Filer | ☒ | Accelerated Filer | ☐ | ||||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||||||||||||||
Emerging growth company | ☐ | ||||||||||||||||||||||
Page No. | ||||||||
June 30, 2020 | December 31, 2019 | ||||||
ASSETS: | |||||||
Leasing equipment, net of accumulated depreciation of $3,135,646 and $2,933,886 | $ | 8,313,379 | $ | 8,392,547 | |||
Net investment in finance leases | 306,879 | 413,342 | |||||
Equipment held for sale | 144,956 | 114,504 | |||||
Revenue earning assets | 8,765,214 | 8,920,393 | |||||
Cash and cash equivalents | 252,380 | 62,295 | |||||
Restricted cash | 98,503 | 106,677 | |||||
Accounts receivable, net of allowances of $2,483 and $1,276 | 219,625 | 210,697 | |||||
Goodwill | 236,665 | 236,665 | |||||
Lease intangibles, net of accumulated amortization of $254,207 and $242,301 | 44,250 | 56,156 | |||||
Other assets | 65,093 | 38,902 | |||||
Fair value of derivative instruments | 24 | 10,848 | |||||
Total assets | $ | 9,681,754 | $ | 9,642,633 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY: | |||||||
Equipment purchases payable | $ | 46,569 | $ | 24,685 | |||
Fair value of derivative instruments | 163,932 | 36,087 | |||||
Accounts payable and other accrued expenses | 90,646 | 116,782 | |||||
Net deferred income tax liability | 302,551 | 301,317 | |||||
Debt, net of unamortized costs of $34,088 and $39,781 | 6,569,106 | 6,631,525 | |||||
Total liabilities | 7,172,804 | 7,110,396 | |||||
Shareholders' equity: | |||||||
Preferred shares, $0.01 par value, at liquidation preference | 555,000 | 405,000 | |||||
Common shares, $0.01 par value, 270,000,000 shares authorized, 81,149,460 and 80,979,833 shares issued, respectively | 811 | 810 | |||||
Undesignated shares, $0.01 par value, 7,800,000 and 13,800,000 shares authorized, respectively, no shares issued and outstanding | — | — | |||||
Treasury shares, at cost, 12,187,889 and 8,771,345 shares, respectively | (374,904 | ) | (278,510 | ) | |||
Additional paid-in capital | 901,289 | 902,725 | |||||
Accumulated earnings | 1,587,751 | 1,533,845 | |||||
Accumulated other comprehensive income (loss) | (160,997 | ) | (31,633 | ) | |||
Total shareholders' equity | 2,508,950 | 2,532,237 | |||||
Total liabilities and shareholders' equity | $ | 9,681,754 | $ | 9,642,633 |
June 30, 2021 | December 31, 2020 | ||||||||||
ASSETS: | |||||||||||
Leasing equipment, net of accumulated depreciation of $3,637,089 and $3,370,652 | $ | 9,971,257 | $ | 8,630,696 | |||||||
Net investment in finance leases | 499,272 | 282,131 | |||||||||
Equipment held for sale | 35,814 | 67,311 | |||||||||
Revenue earning assets | 10,506,343 | 8,980,138 | |||||||||
Cash and cash equivalents | 77,392 | 61,512 | |||||||||
Restricted cash | 127,484 | 90,484 | |||||||||
Accounts receivable, net of allowances of $1,230 and $2,192 | 280,288 | 226,090 | |||||||||
Goodwill | 236,665 | 236,665 | |||||||||
Lease intangibles, net of accumulated amortization of $273,753 and $264,791 | 24,704 | 33,666 | |||||||||
Other assets | 82,389 | 83,969 | |||||||||
Fair value of derivative instruments | 93 | 9 | |||||||||
Total assets | $ | 11,335,358 | $ | 9,712,533 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY: | |||||||||||
Equipment purchases payable | $ | 411,454 | $ | 191,777 | |||||||
Fair value of derivative instruments | 77,141 | 128,872 | |||||||||
Accounts payable and other accrued expenses | 124,444 | 95,235 | |||||||||
Net deferred income tax liability | 355,636 | 327,431 | |||||||||
Debt, net of unamortized costs of $63,184 and $42,747 | 7,639,606 | 6,403,270 | |||||||||
Total liabilities | 8,608,281 | 7,146,585 | |||||||||
Shareholders' equity: | |||||||||||
Preferred shares, $0.01 par value, at liquidation preference | 555,000 | 555,000 | |||||||||
Common shares, $0.01 par value, 270,000,000 shares authorized, 81,294,902 and 81,151,723 shares issued, respectively | 813 | 812 | |||||||||
Undesignated shares, $0.01 par value, 7,800,000 shares authorized, 0 shares issued and outstanding | 0 | 0 | |||||||||
Treasury shares, at cost, 13,901,326 shares | (436,822) | (436,822) | |||||||||
Additional paid-in capital | 906,186 | 905,323 | |||||||||
Accumulated earnings | 1,781,692 | 1,674,670 | |||||||||
Accumulated other comprehensive income (loss) | (79,792) | (133,035) | |||||||||
Total shareholders' equity | 2,727,077 | 2,565,948 | |||||||||
Total liabilities and shareholders' equity | $ | 11,335,358 | $ | 9,712,533 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Leasing revenues: | |||||||||||||||
Operating leases | $ | 313,423 | $ | 328,370 | $ | 626,227 | $ | 658,792 | |||||||
Finance leases | 7,974 | 10,196 | 16,638 | 20,633 | |||||||||||
Total leasing revenues | 321,397 | 338,566 | 642,865 | 679,425 | |||||||||||
Equipment trading revenues | 16,903 | 23,209 | 32,283 | 41,037 | |||||||||||
Equipment trading expenses | (14,883 | ) | (18,713 | ) | (28,330 | ) | (32,954 | ) | |||||||
Trading margin | 2,020 | 4,496 | 3,953 | 8,083 | |||||||||||
Net gain on sale of leasing equipment | 4,537 | 7,519 | 8,614 | 15,988 | |||||||||||
Operating expenses: | |||||||||||||||
Depreciation and amortization | 133,292 | 135,348 | 265,987 | 269,957 | |||||||||||
Direct operating expenses | 29,619 | 18,097 | 52,867 | 34,899 | |||||||||||
Administrative expenses | 20,472 | 19,988 | 39,697 | 38,175 | |||||||||||
Provision (reversal) for doubtful accounts | 374 | 521 | 4,653 | 379 | |||||||||||
Total operating expenses | 183,757 | 173,954 | 363,204 | 343,410 | |||||||||||
Operating income (loss) | 144,197 | 176,627 | 292,228 | 360,086 | |||||||||||
Other expenses: | |||||||||||||||
Interest and debt expense | 66,874 | 82,260 | 135,876 | 165,780 | |||||||||||
Realized (gain) loss on derivative instruments, net | 11 | (669 | ) | (224 | ) | (1,373 | ) | ||||||||
Unrealized (gain) loss on derivative instruments, net | (11 | ) | 1,267 | 286 | 2,253 | ||||||||||
Debt termination expense | — | 558 | 31 | 558 | |||||||||||
Other (income) expense, net | 36 | (927 | ) | (3,610 | ) | (1,931 | ) | ||||||||
Total other expenses | 66,910 | 82,489 | 132,359 | 165,287 | |||||||||||
Income (loss) before income taxes | 77,287 | 94,138 | 159,869 | 194,799 | |||||||||||
Income tax expense (benefit) | 6,699 | 8,042 | 12,245 | 15,892 | |||||||||||
Net income (loss) | $ | 70,588 | $ | 86,096 | $ | 147,624 | $ | 178,907 | |||||||
Less: income (loss) attributable to noncontrolling interest | — | — | — | 592 | |||||||||||
Less: dividend on preferred shares | 10,513 | 2,025 | 20,338 | 2,330 | |||||||||||
Net income (loss) attributable to common shareholders | $ | 60,075 | $ | 84,071 | $ | 127,286 | $ | 175,985 | |||||||
Net income per common share—Basic | $ | 0.87 | $ | 1.13 | $ | 1.81 | $ | 2.31 | |||||||
Net income per common share—Diluted | $ | 0.86 | $ | 1.12 | $ | 1.80 | $ | 2.29 | |||||||
Cash dividends paid per common share | $ | 0.52 | $ | 0.52 | $ | 1.04 | $ | 1.04 | |||||||
Weighted average number of common shares outstanding—Basic | 69,275 | 74,598 | 70,436 | 76,151 | |||||||||||
Dilutive restricted shares | 261 | 617 | 262 | 583 | |||||||||||
Weighted average number of common shares outstanding—Diluted | 69,536 | 75,215 | 70,698 | 76,734 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income (loss) | $ | 70,588 | $ | 86,096 | $ | 147,624 | $ | 178,907 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Change in derivative instruments designated as cash flow hedges | (16,112 | ) | (31,517 | ) | (136,252 | ) | (45,840 | ) | |||||||
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges | 5,854 | (1,716 | ) | 7,265 | (3,465 | ) | |||||||||
Cumulative effect for the adoption of ASU 2017-12, net of income tax effect | — | — | — | 432 | |||||||||||
Foreign currency translation adjustment | (115 | ) | (175 | ) | (377 | ) | (132 | ) | |||||||
Other comprehensive income (loss), net of tax | (10,373 | ) | (33,408 | ) | (129,364 | ) | (49,005 | ) | |||||||
Comprehensive income | 60,215 | 52,688 | 18,260 | 129,902 | |||||||||||
Less: | |||||||||||||||
Other comprehensive income attributable to noncontrolling interest | $ | — | $ | — | $ | — | $ | 592 | |||||||
Dividend on preferred shares | 10,513 | 2,025 | 20,338 | 2,330 | |||||||||||
Comprehensive income attributable to common shareholders | $ | 49,702 | $ | 50,663 | $ | (2,078 | ) | $ | 126,980 | ||||||
Tax (benefit) provision on change in derivative instruments designated as cash flow hedges | $ | (1,512 | ) | $ | (3,813 | ) | $ | (10,986 | ) | $ | (5,957 | ) | |||
Tax (benefit) provision on reclassification of (gain) loss on derivative instruments designated as cash flow hedges | $ | 335 | $ | (591 | ) | $ | 183 | $ | (1,197 | ) | |||||
Tax (benefit) provision on cumulative effect for the adoption of ASU 2017-12 | $ | — | $ | — | $ | — | $ | 277 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Leasing revenues: | |||||||||||||||||||||||
Operating leases | $ | 360,859 | $ | 313,423 | $ | 700,653 | $ | 626,227 | |||||||||||||||
Finance leases | 8,925 | 7,974 | 15,874 | 16,638 | |||||||||||||||||||
Total leasing revenues | 369,784 | 321,397 | 716,527 | 642,865 | |||||||||||||||||||
Equipment trading revenues | 33,183 | 16,903 | 59,128 | 32,283 | |||||||||||||||||||
Equipment trading expenses | (22,457) | (14,883) | (40,261) | (28,330) | |||||||||||||||||||
Trading margin | 10,726 | 2,020 | 18,867 | 3,953 | |||||||||||||||||||
Net gain on sale of leasing equipment | 31,391 | 4,537 | 53,358 | 8,614 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Depreciation and amortization | 154,056 | 133,292 | 297,363 | 265,987 | |||||||||||||||||||
Direct operating expenses | 6,337 | 29,619 | 15,707 | 52,867 | |||||||||||||||||||
Administrative expenses | 22,979 | 20,472 | 43,900 | 39,697 | |||||||||||||||||||
Provision (reversal) for doubtful accounts | (26) | 374 | (2,490) | 4,653 | |||||||||||||||||||
Total operating expenses | 183,346 | 183,757 | 354,480 | 363,204 | |||||||||||||||||||
Operating income (loss) | 228,555 | 144,197 | 434,272 | 292,228 | |||||||||||||||||||
Other expenses: | |||||||||||||||||||||||
Interest and debt expense | 60,004 | 66,874 | 114,627 | 135,876 | |||||||||||||||||||
Debt termination expense | 89,863 | 0 | 89,863 | 31 | |||||||||||||||||||
Other (income) expense, net | (261) | 36 | (742) | (3,548) | |||||||||||||||||||
Total other expenses | 149,606 | 66,910 | 203,748 | 132,359 | |||||||||||||||||||
Income (loss) before income taxes | 78,949 | 77,287 | 230,524 | 159,869 | |||||||||||||||||||
Income tax expense (benefit) | 13,732 | 6,699 | 25,469 | 12,245 | |||||||||||||||||||
Net income (loss) | $ | 65,217 | $ | 70,588 | $ | 205,055 | $ | 147,624 | |||||||||||||||
Less: dividend on preferred shares | 10,513 | 10,513 | 21,026 | 20,338 | |||||||||||||||||||
Net income (loss) attributable to common shareholders | $ | 54,704 | $ | 60,075 | $ | 184,029 | $ | 127,286 | |||||||||||||||
Net income per common share—Basic | $ | 0.82 | $ | 0.87 | $ | 2.75 | $ | 1.81 | |||||||||||||||
Net income per common share—Diluted | $ | 0.81 | $ | 0.86 | $ | 2.74 | $ | 1.80 | |||||||||||||||
Cash dividends paid per common share | $ | 0.57 | $ | 0.52 | $ | 1.14 | $ | 1.04 | |||||||||||||||
Weighted average number of common shares outstanding—Basic | 66,951 | 69,275 | 66,943 | 70,436 | |||||||||||||||||||
Dilutive restricted shares | 331 | 261 | 295 | 262 | |||||||||||||||||||
Weighted average number of common shares outstanding—Diluted | 67,282 | 69,536 | 67,238 | 70,698 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income (loss) | $ | 65,217 | $ | 70,588 | $ | 205,055 | $ | 147,624 | |||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Change in derivative instruments designated as cash flow hedges | (23,730) | (16,112) | 39,120 | (136,252) | |||||||||||||||||||
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges | 6,958 | 5,854 | 14,060 | 7,265 | |||||||||||||||||||
Foreign currency translation adjustment | 42 | (115) | 63 | (377) | |||||||||||||||||||
Other comprehensive income (loss), net of tax | (16,730) | (10,373) | 53,243 | (129,364) | |||||||||||||||||||
Comprehensive income | 48,487 | 60,215 | 258,298 | 18,260 | |||||||||||||||||||
Less: | |||||||||||||||||||||||
Dividend on preferred shares | 10,513 | 10,513 | 21,026 | 20,338 | |||||||||||||||||||
Comprehensive income attributable to common shareholders | $ | 37,974 | $ | 49,702 | $ | 237,272 | $ | (2,078) | |||||||||||||||
Tax (benefit) provision on change in derivative instruments designated as cash flow hedges | $ | (556) | $ | (1,512) | $ | 2,002 | $ | (10,986) | |||||||||||||||
Tax (benefit) provision on reclassification of (gain) loss on derivative instruments designated as cash flow hedges | $ | 481 | $ | 335 | $ | 949 | $ | 183 | |||||||||||||||
Preferred Shares | Common Shares | Treasury Shares | Add'l Paid in Capital | Accumulated Earnings | Accumulated Other Comprehensive Income | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 22,200,000 | $ | 555,000 | 81,151,723 | $ | 812 | 13,901,326 | $ | (436,822) | $ | 905,323 | $ | 1,674,670 | $ | (133,035) | $ | 2,565,948 | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 207,077 | 2 | — | — | 1,713 | — | — | 1,715 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchase to settle shareholder tax obligations | — | — | (85,466) | (1) | — | — | (4,145) | — | — | (4,146) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | 139,838 | — | 139,838 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | — | 69,973 | 69,973 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares dividend declared | — | — | — | — | — | — | — | (38,497) | — | (38,497) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred shares dividend declared | — | — | — | — | — | — | — | (10,513) | — | (10,513) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | 22,200,000 | $ | 555,000 | 81,273,334 | $ | 813 | 13,901,326 | $ | (436,822) | $ | 902,891 | $ | 1,765,498 | $ | (63,062) | $ | 2,724,318 | ||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 21,568 | — | — | — | 3,295 | — | — | 3,295 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | 65,217 | — | 65,217 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | — | (16,730) | (16,730) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares dividend declared | — | — | — | — | — | — | — | (38,510) | — | (38,510) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred shares dividend declared | — | — | — | — | — | — | — | (10,513) | — | (10,513) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | 22,200,000 | $ | 555,000 | 81,294,902 | $ | 813 | 13,901,326 | $ | (436,822) | $ | 906,186 | $ | 1,781,692 | $ | (79,792) | $ | 2,727,077 | ||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Shares | Common Shares | Treasury Shares | Add'l Paid in Capital | Accumulated Earnings | Accumulated Other Comprehensive Income | Non controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | 16,200,000 | $ | 405,000 | 80,979,833 | $ | 810 | 8,771,345 | $ | (278,510 | ) | $ | 902,725 | $ | 1,533,845 | $ | (31,633 | ) | $ | — | $ | 2,532,237 | |||||||||||||||||||
Issuance of preferred shares, net of offering expenses | 6,000,000 | 150,000 | — | — | — | — | (5,171 | ) | — | — | — | 144,829 | ||||||||||||||||||||||||||||
Share-based compensation | — | — | 184,644 | 2 | — | — | 1,603 | — | — | — | 1,605 | |||||||||||||||||||||||||||||
Treasury shares acquired | — | — | — | — | 1,365,620 | (37,488 | ) | — | — | — | — | (37,488 | ) | |||||||||||||||||||||||||||
Share repurchase to settle shareholder tax obligations | — | — | (53,609 | ) | (1 | ) | — | — | (2,155 | ) | — | — | — | (2,156 | ) | |||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | 77,036 | — | — | 77,036 | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | — | (118,991 | ) | — | (118,991 | ) | |||||||||||||||||||||||||||
Common shares dividend declared | — | — | — | — | — | — | — | (37,427 | ) | — | — | (37,427 | ) | |||||||||||||||||||||||||||
Preferred shares dividend declared | — | — | — | — | — | — | — | (9,395 | ) | — | — | (9,395 | ) | |||||||||||||||||||||||||||
Balance as of March 31, 2020 | 22,200,000 | $ | 555,000 | 81,110,868 | $ | 811 | 10,136,965 | $ | (315,998 | ) | $ | 897,002 | $ | 1,564,059 | $ | (150,624 | ) | $ | — | $ | 2,550,250 | |||||||||||||||||||
Issuance of preferred shares, net of offering expenses | — | — | — | — | — | — | 31 | — | — | — | 31 | |||||||||||||||||||||||||||||
Share-based compensation | — | — | 38,592 | — | — | — | 4,256 | — | — | — | 4,256 | |||||||||||||||||||||||||||||
Treasury shares acquired | — | — | — | — | 2,050,924 | (58,906 | ) | — | — | — | — | (58,906 | ) | |||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | 70,588 | — | — | 70,588 | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | — | (10,373 | ) | — | (10,373 | ) | |||||||||||||||||||||||||||
Common shares dividend declared | — | — | — | — | — | — | — | (36,383 | ) | — | — | (36,383 | ) | |||||||||||||||||||||||||||
Preferred shares dividend declared | — | — | — | — | — | — | — | (10,513 | ) | — | — | (10,513 | ) | |||||||||||||||||||||||||||
Balance as of June 30, 2020 | 22,200,000 | $ | 555,000 | 81,149,460 | $ | 811 | 12,187,889 | $ | (374,904 | ) | $ | 901,289 | $ | 1,587,751 | $ | (160,997 | ) | $ | — | $ | 2,508,950 |
` | Preferred Shares | Common Shares | Treasury Shares | Add'l Paid in Capital | Accumulated Earnings | Accumulated Other Comprehensive Income | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | 16,200,000 | $ | 405,000 | 80,979,833 | $ | 810 | 8,771,345 | $ | (278,510) | $ | 902,725 | $ | 1,533,845 | $ | (31,633) | $ | 2,532,237 | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred shares, net of offering expenses | 6,000,000 | 150,000 | — | — | — | — | (5,171) | — | — | 144,829 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 184,644 | 2 | — | — | 1,603 | — | — | 1,605 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares acquired | — | — | — | — | 1,365,620 | (37,488) | — | — | — | (37,488) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share repurchase to settle shareholder tax obligations | — | — | (53,609) | (1) | — | — | (2,155) | — | — | (2,156) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | 77,036 | — | 77,036 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | 0 | (118,991) | (118,991) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares dividend declared | — | — | — | — | — | — | — | (37,427) | — | (37,427) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred shares dividend declared | — | — | — | — | — | — | — | (9,395) | — | (9,395) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2020 | 22,200,000 | $ | 555,000 | 81,110,868 | $ | 811 | 10,136,965 | $ | (315,998) | $ | 897,002 | $ | 1,564,059 | $ | (150,624) | $ | 2,550,250 | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred shares, net of offering expenses | 0 | 0 | — | — | — | — | 31 | — | — | 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 38,592 | 0 | — | — | 4,256 | — | — | 4,256 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares acquired | — | — | — | — | 2,050,924 | (58,906) | — | — | — | (58,906) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | 70,588 | — | 70,588 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | — | (10,373) | (10,373) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares dividend declared | — | — | — | — | — | — | — | (36,383) | — | (36,383) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred shares dividend declared | — | — | — | — | — | — | — | (10,513) | — | (10,513) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | 22,200,000 | $ | 555,000 | 81,149,460 | $ | 811 | 12,187,889 | $ | (374,904) | $ | 901,289 | $ | 1,587,751 | $ | (160,997) | $ | 2,508,950 | ||||||||||||||||||||||||||||||||||||||||||||||||
` | Preferred Shares | Common Shares | Treasury Shares | Add'l Paid in Capital | Accumulated Earnings | Accumulated Other Comprehensive Income | Non controlling Interest | Total Equity | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | — | $ | — | 80,843,472 | $ | 809 | 1,853,148 | $ | (58,114 | ) | $ | 896,811 | $ | 1,349,627 | $ | 14,563 | $ | 121,513 | $ | 2,325,209 | ||||||||||||||||||||
Issuance of preferred shares, net of offering expenses | 3,450,000 | 86,250 | — | — | — | — | (3,192 | ) | — | — | — | 83,058 | ||||||||||||||||||||||||||||
Share-based compensation | — | — | 170,231 | 2 | — | — | 1,816 | — | — | — | 1,818 | |||||||||||||||||||||||||||||
Treasury shares acquired | — | — | — | — | 2,636.534 | (83,293 | ) | — | — | — | — | (83,293 | ) | |||||||||||||||||||||||||||
Share repurchase to settle shareholder tax obligations | — | — | (31,506 | ) | — | — | — | (978 | ) | — | — | — | (978 | ) | ||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | 92,219 | — | 592 | 92,811 | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | (432 | ) | (15,597 | ) | — | (16,029 | ) | ||||||||||||||||||||||||||
Purchase of noncontrolling interests | — | — | — | — | — | — | 11,707 | — | — | (82,707 | ) | (71,000 | ) | |||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | — | — | (2,078 | ) | (2,078 | ) | |||||||||||||||||||||||||||
Common shares dividend declared | — | — | — | — | — | — | — | (40,923 | ) | — | — | (40,923 | ) | |||||||||||||||||||||||||||
Balance as of March 31, 2019 | 3,450,000 | $ | 86,250 | 80,982,197 | $ | 811 | 4,489,682 | $ | (141,407 | ) | $ | 906,164 | $ | 1,400,491 | $ | (1,034 | ) | $ | 37,320 | $ | 2,288,595 | |||||||||||||||||||
Issuance of preferred shares, net of offering expenses | 5,750,000 | 143,750 | — | — | — | — | (5,018 | ) | — | — | — | 138,732 | ||||||||||||||||||||||||||||
Share-based compensation | — | — | 41,535 | — | — | — | 3,653 | — | — | — | 3,653 | |||||||||||||||||||||||||||||
Treasury shares acquired | — | — | — | — | 2,347,826 | (73,942 | ) | — | — | — | — | (73,942 | ) | |||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | 86,096 | — | — | 86,096 | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | — | (33,408 | ) | — | (33,408 | ) | |||||||||||||||||||||||||||
Purchase of noncontrolling interests | — | — | — | — | — | — | 5,143 | — | — | (37,320 | ) | (32,177 | ) | |||||||||||||||||||||||||||
Common shares dividend declared | — | — | — | — | — | — | �� | (39,108 | ) | — | — | (39,108 | ) | |||||||||||||||||||||||||||
Preferred shares dividend declared | — | — | — | — | — | — | — | (1,833 | ) | — | — | (1,833 | ) | |||||||||||||||||||||||||||
Balance as of June 30, 2019 | 9,200,000 | $ | 230,000 | 81,023,732 | $ | 811 | 6,837,508 | $ | (215,349 | ) | $ | 909,942 | $ | 1,445,646 | $ | (34,442 | ) | $ | — | $ | 2,336,608 |
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 147,624 | $ | 178,907 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 265,987 | 269,957 | |||||
Amortization of deferred debt cost and other debt related amortization | 7,187 | 6,849 | |||||
Lease related amortization | 15,788 | 23,835 | |||||
Share-based compensation expense | 5,861 | 5,471 | |||||
Net (gain) loss on sale of leasing equipment | (8,614 | ) | (15,988 | ) | |||
Unrealized (gain) loss on derivative instruments | 286 | 2,253 | |||||
Debt termination expense | 31 | 558 | |||||
Deferred income taxes | 12,037 | 13,910 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (20,778 | ) | 12,545 | ||||
Accounts payable and other accrued expenses | (25,752 | ) | (8,860 | ) | |||
Net equipment sold (purchased) for resale activity | (4,035 | ) | (8,517 | ) | |||
Cash collections on finance lease receivables, net of income earned | 46,650 | 33,680 | |||||
Other assets | (25,703 | ) | (12,786 | ) | |||
Net cash provided by (used in) operating activities | 416,569 | 501,814 | |||||
Cash flows from investing activities: | |||||||
Purchases of leasing equipment and investments in finance leases | (219,788 | ) | (149,986 | ) | |||
Proceeds from sale of equipment, net of selling costs | 102,088 | 106,603 | |||||
Other | (328 | ) | (130 | ) | |||
Net cash provided by (used in) investing activities | (118,028 | ) | (43,513 | ) | |||
Cash flows from financing activities: | |||||||
Issuance of preferred shares, net of underwriting discount | 145,275 | 221,790 | |||||
Purchases of treasury shares | (95,243 | ) | (157,075 | ) | |||
Redemption of common shares for withholding taxes | (2,156 | ) | (978 | ) | |||
Debt issuance costs | — | (5,455 | ) | ||||
Borrowings under debt facilities | 730,000 | 1,143,000 | |||||
Payments under debt facilities and finance lease obligations | (801,044 | ) | (1,472,827 | ) | |||
Dividends paid on preferred shares | (19,908 | ) | (1,833 | ) | |||
Dividends paid on common shares | (72,964 | ) | (78,960 | ) | |||
Distributions to noncontrolling interests | — | (2,078 | ) | ||||
Purchase of noncontrolling interests | — | (103,039 | ) | ||||
Other | (590 | ) | — | ||||
Net cash provided by (used in) financing activities | (116,630 | ) | (457,455 | ) | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 181,911 | $ | 846 | |||
Cash, cash equivalents and restricted cash, beginning of period | 168,972 | 159,539 | |||||
Cash, cash equivalents and restricted cash, end of period | $ | 350,883 | $ | 160,385 | |||
Supplemental disclosures: | |||||||
Interest paid | $ | 131,457 | $ | 160,211 | |||
Income taxes paid (refunded) | $ | 216 | $ | 2,216 | |||
Right-of-use asset for leased property | $ | 196 | $ | 7,862 | |||
Supplemental non-cash investing activities: | |||||||
Equipment purchases payable | $ | 46,569 | $ | 11,015 |
Six Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 205,055 | $ | 147,624 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 297,363 | 265,987 | |||||||||
Amortization of deferred debt cost and other debt related amortization | 4,255 | 7,187 | |||||||||
Lease related amortization | 9,549 | 15,788 | |||||||||
Share-based compensation expense | 5,010 | 5,861 | |||||||||
Net (gain) loss on sale of leasing equipment | (53,358) | (8,614) | |||||||||
Unrealized (gain) loss on derivative instruments | 0 | 286 | |||||||||
Debt termination expense | 89,863 | 31 | |||||||||
Deferred income taxes | 25,228 | 12,037 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (12,707) | (20,778) | |||||||||
Accounts payable and other accrued expenses | (7,753) | (25,752) | |||||||||
Net equipment sold (purchased) for resale activity | 8,787 | (4,035) | |||||||||
Cash received (paid) for settlement of interest rate swaps | 5,481 | 0 | |||||||||
Cash collections on finance lease receivables, net of income earned | 27,124 | 46,650 | |||||||||
Other assets | 9,422 | (25,703) | |||||||||
Net cash provided by (used in) operating activities | 613,319 | 416,569 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of leasing equipment and investments in finance leases | (1,717,843) | (219,788) | |||||||||
Proceeds from sale of equipment, net of selling costs | 117,688 | 102,088 | |||||||||
Other | 63 | (328) | |||||||||
Net cash provided by (used in) investing activities | (1,600,092) | (118,028) | |||||||||
Cash flows from financing activities: | |||||||||||
Issuance of preferred shares, net of underwriting discount | 0 | 145,275 | |||||||||
Purchases of treasury shares | 0 | (95,243) | |||||||||
Redemption of common shares for withholding taxes | (4,146) | (2,156) | |||||||||
Debt issuance costs | (31,502) | 0 | |||||||||
Borrowings under debt facilities | 5,663,432 | 730,000 | |||||||||
Payments under debt facilities and finance lease obligations | (4,490,788) | (801,044) | |||||||||
Dividends paid on preferred shares | (21,026) | (19,908) | |||||||||
Dividends paid on common shares | (76,317) | (72,964) | |||||||||
Other | 0 | (590) | |||||||||
Net cash provided by (used in) financing activities | 1,039,653 | (116,630) | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 52,880 | $ | 181,911 | |||||||
Cash, cash equivalents and restricted cash, beginning of period | 151,996 | 168,972 | |||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 204,876 | $ | 350,883 | |||||||
Supplemental disclosures: | |||||||||||
Interest paid | $ | 106,182 | $ | 131,457 | |||||||
Income taxes paid (refunded) | $ | 3,445 | $ | 216 | |||||||
Right-of-use asset for leased property | $ | 1,453 | $ | 196 | |||||||
Supplemental non-cash investing activities: | |||||||||||
Equipment purchases payable | $ | 411,454 | $ | 46,569 |
June 30, 2021 | December 31, 2020 | ||||||||||
Equipment held for sale | $ | 1,060 | $ | 4,001 |
June 30, 2020 | December 31, 2019 | ||||||
Equipment held for sale | $ | 14,765 | $ | 11,797 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Impairment (loss) reversal on equipment held for sale | $ | (42) | $ | (1,053) | $ | (37) | $ | (2,543) | |||||||||||||||
Gain (loss) on sale of equipment, net of selling costs | 31,433 | 5,590 | 53,395 | 11,157 | |||||||||||||||||||
Net gain on sale of leasing equipment | $ | 31,391 | $ | 4,537 | $ | 53,358 | $ | 8,614 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Impairment (loss) reversal on equipment held for sale | $ | (1,053 | ) | $ | (1,324 | ) | $ | (2,543 | ) | $ | (2,731 | ) | |||
Gain (loss) on sale of equipment, net of selling costs | 5,590 | 8,843 | 11,157 | 18,719 | |||||||||||
Net gain on sale of leasing equipment | $ | 4,537 | $ | 7,519 | $ | 8,614 | $ | 15,988 |
Years ending December 31, | Total Intangible Assets | ||||||||||||||||
2021 | $ | 7,587 | |||||||||||||||
2022 | $ | 10,497 | |||||||||||||||
2023 | $ | 4,657 | |||||||||||||||
2024 | $ | 1,963 | |||||||||||||||
Total | $ | 24,704 |
Years ending December 31, | Total intangible assets | ||
2020 | $ | 10,585 | |
2021 | 16,549 | ||
2022 | 10,497 | ||
2023 | 4,657 | ||
2024 | 1,962 | ||
2025 and thereafter | — | ||
Total | $ | 44,250 |
Preferred Share Offering | Issuance | Liquidation Preference (in thousands) | # of Shares(1) | ||||||||||||||||||||
Series A 8.50% Cumulative Redeemable Perpetual Preference Shares ("Series A") | March 2019 | $ | 86,250 | 3,450,000 | |||||||||||||||||||
Series B 8.00% Cumulative Redeemable Perpetual Preference Shares ("Series B") | June 2019 | 143,750 | 5,750,000 | ||||||||||||||||||||
Series C 7.375% Cumulative Redeemable Perpetual Preference Shares ("Series C") | November 2019 | 175,000 | 7,000,000 | ||||||||||||||||||||
Series D 6.875% Cumulative Redeemable Perpetual Preference Shares ("Series D") | January 2020 | 150,000 | 6,000,000 | ||||||||||||||||||||
$ | 555,000 | 22,200,000 |
Preferred Share Offering | Issuance | Liquidation Preference (in thousands) | # of Shares(1) | ||||||
Series A 8.50% Cumulative Redeemable Perpetual Preference Shares ("Series A") | March 2019 | $ | 86,250 | 3,450,000 | |||||
Series B 8.00% Cumulative Redeemable Perpetual Preference Shares ("Series B") | June 2019 | 143,750 | 5,750,000 | ||||||
Series C 7.375% Cumulative Redeemable Perpetual Preference Shares ("Series C") | November 2019 | 175,000 | 7,000,000 | ||||||
Series D 6.875% Cumulative Redeemable Perpetual Preference Shares ("Series D") | January 2020 | 150,000 | 6,000,000 | ||||||
$ | 555,000 | 22,200,000 |
(1) Represents number of shares authorized, issued, and outstanding. |
Series A | Series B | Series C | Series D | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Record Date | Payment Date | Aggregate Payment | Per Share Payment(1) | Aggregate Payment | Per Share Payment | Aggregate Payment | Per Share Payment(1) | Aggregate Payment | Per Share Payment(1) | |||||||||||||||||||||||||||||||||||||||||||||||
June 8, 2021 | June 15, 2021 | $1.8 | $0.53 | $2.9 | $0.50 | $3.2 | $0.46 | $2.6 | $0.43 | |||||||||||||||||||||||||||||||||||||||||||||||
March 8, 2021 | March 15, 2021 | $1.8 | $0.53 | $2.9 | $0.50 | $3.2 | $0.46 | $2.6 | $0.43 | |||||||||||||||||||||||||||||||||||||||||||||||
June 8, 2020 | June 15, 2020 | $1.8 | $0.53 | $2.9 | $0.50 | $3.2 | $0.46 | $2.6 | $0.43 | |||||||||||||||||||||||||||||||||||||||||||||||
March 9, 2020 | March 16, 2020 | $1.8 | $0.53 | $2.9 | $0.50 | $3.2 | $0.46 | $1.5 | $0.24 | |||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Series C | Series D | ||||||||||||||
Record Date | Payment Date | Aggregate Payment | Per Share Payment | Aggregate Payment | Per Share Payment | Aggregate Payment | Per Share Payment | Aggregate Payment | Per Share Payment | ||||||||
June 8, 2020 | June 15, 2020 | $1.8 | $0.53125 | $2.9 | $0.50 | $3.2 | $0.46094 | $2.6 | $0.42969 | ||||||||
March 9, 2020 | March 16, 2020 | $1.8 | $0.53125 | $2.9 | $0.50 | $3.2 | $0.46094 | $1.5 | $0.24349 | ||||||||
June 10, 2019 | June 17, 2019 | $1.8 | $0.53125 | n/a | n/a | n/a | n/a | n/a | n/a |
Record Date | Payment Date | Aggregate Payment | Per Share Payment | ||||||||||||||
June 10, 2021 | June 24, 2021 | $38.2 Million | $0.57 | ||||||||||||||
March 12, 2021 | March 26, 2021 | $38.2 Million | $0.57 | ||||||||||||||
June 11, 2020 | June 25, 2020 | $35.8 Million | $0.52 | ||||||||||||||
March 13, 2020 | March 27, 2020 | $37.1 Million | $0.52 | ||||||||||||||
Cash Flow Hedges | Foreign Currency Translation | Accumulated Other Comprehensive (Loss) Income | |||||||||||||||
Balance as of December 31, 2020 | $ | (128,526) | $ | (4,509) | $ | (133,035) | |||||||||||
Change in derivative instruments designated as cash flow hedges(1) | 62,850 | 0 | 62,850 | ||||||||||||||
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges(1) | 7,102 | 0 | 7,102 | ||||||||||||||
Foreign currency translation adjustment | 0 | 21 | 21 | ||||||||||||||
Balance as of March 31, 2021 | $ | (58,574) | $ | (4,488) | $ | (63,062) | |||||||||||
Change in derivative instruments designated as cash flow hedges(1) | (23,730) | $ | 0 | (23,730) | |||||||||||||
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges(1) | 6,958 | 0 | 6,958 | ||||||||||||||
Foreign currency translation adjustment | 0 | 42 | 42 | ||||||||||||||
Balance as of June 30, 2021 | $ | (75,346) | $ | (4,446) | $ | (79,792) |
Cash Flow Hedges | Foreign Currency Translation | Accumulated Other Comprehensive (Loss) Income | |||||||||
Balance as of December 31, 2019 | $ | (27,096 | ) | $ | (4,537 | ) | $ | (31,633 | ) | ||
Change in derivative instruments designated as cash flow hedges(1) | (120,140 | ) | — | (120,140 | ) | ||||||
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges(1) | 1,411 | — | 1,411 | ||||||||
Foreign currency translation adjustment | — | (262 | ) | (262 | ) | ||||||
Balance as of March 31, 2020 | $ | (145,825 | ) | $ | (4,799 | ) | $ | (150,624 | ) | ||
Change in derivative instruments designated as cash flow hedges(1) | (16,112 | ) | — | (16,112 | ) | ||||||
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges(1) | 5,854 | — | 5,854 | ||||||||
Foreign currency translation adjustment | — | (115 | ) | (115 | ) | ||||||
Balance as of June 30, 2020 | $ | (156,083 | ) | $ | (4,914 | ) | $ | (160,997 | ) |
Cash Flow Hedges | Foreign Currency Translation | Accumulated Other Comprehensive (Loss) Income | |||||||||
Balance as of December 31, 2018 | $ | 19,043 | $ | (4,480 | ) | $ | 14,563 | ||||
Change in derivative instruments designated as cash flow hedges(1) | (14,323 | ) | — | (14,323 | ) | ||||||
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges(1) | (1,749 | ) | — | (1,749 | ) | ||||||
Cumulative effect for the adoption of ASU 2017-12, net of income tax effect | 432 | — | 432 | ||||||||
Foreign currency translation adjustment | — | 43 | 43 | ||||||||
Balance as of March 31, 2019 | $ | 3,403 | $ | (4,437 | ) | $ | (1,034 | ) | |||
Change in derivative instruments designated as cash flow hedges(1) | (31,517 | ) | — | (31,517 | ) | ||||||
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges(1) | (1,716 | ) | — | (1,716 | ) | ||||||
Foreign currency translation adjustment | — | (175 | ) | (175 | ) | ||||||
Balance as of June 30, 2019 | $ | (29,830 | ) | $ | (4,612 | ) | $ | (34,442 | ) |
Cash Flow Hedges | Foreign Currency Translation | Accumulated Other Comprehensive (Loss) Income | |||||||||||||||
Balance as of December 31, 2019 | $ | (27,096) | $ | (4,537) | $ | (31,633) | |||||||||||
Change in derivative instruments designated as cash flow hedges(1) | (120,140) | 0 | (120,140) | ||||||||||||||
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges(1) | 1,411 | 0 | 1,411 | ||||||||||||||
Foreign currency translation adjustment | 0 | (262) | (262) | ||||||||||||||
Balance as of March 31, 2020 | $ | (145,825) | $ | (4,799) | $ | (150,624) | |||||||||||
Change in derivative instruments designated as cash flow hedges(1) | (16,112) | 0 | (16,112) | ||||||||||||||
Reclassification of (gain) loss on derivative instruments designated as cash flow hedges(1) | 5,854 | 0 | 5,854 | ||||||||||||||
Foreign currency translation adjustment | 0 | (115) | (115) | ||||||||||||||
Balance as of June 30, 2020 | $ | (156,083) | $ | (4,914) | $ | (160,997) |
Balance Sheet | Financial statement caption | June 30, 2021 | December 31, 2020 | ||||||||||||||||||||
Right-of-use asset - operating | Other assets | $ | 5,467 | $ | 5,062 | ||||||||||||||||||
Lease liability - operating | Accounts payable and other accrued expenses | $ | 6,332 | $ | 6,088 |
Balance Sheet | Financial statement caption | June 30, 2020 | December 31, 2019 | ||||||
Right-of-use asset - operating | Other assets | $ | 6,393 | $ | 7,616 | ||||
Lease liability - operating | Accounts payable and other accrued expenses | $ | 7,573 | $ | 8,940 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
Income Statement | Financial statement caption | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||
Operating lease cost(1) | Administrative expenses | $ | 804 | $ | 747 | $ | 1,580 | $ | 1,506 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Income Statement | Financial statement caption | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Operating lease cost(1) | Administrative expenses | $ | 747 | $ | 767 | $ | 1,506 | $ | 1,501 |
Years ending December 31, | |||
2020 | $ | 1,559 | |
2021 | 2,755 | ||
2022 | 2,288 | ||
2023 | 1,379 | ||
2024 | 67 | ||
2025 and thereafter | — | ||
Total undiscounted future cash flows related to lease payments | $ | 8,048 | |
Less: imputed interest | (475 | ) | |
Total present value of lease liability | $ | 7,573 |
June 30, 2021 | December 31, 2020 | ||||||||||
Future minimum lease payment receivable(1) | $ | 659,580 | $ | 355,755 | |||||||
Estimated residual receivable(2) | 82,173 | 53,892 | |||||||||
Gross finance lease receivables(3) | 741,753 | 409,647 | |||||||||
Unearned income(4) | (242,481) | (127,516) | |||||||||
Net investment in finance leases(5) | $ | 499,272 | $ | 282,131 |
June 30, 2020 | December 31, 2019 | ||||||
Future minimum lease payment receivable(1) | $ | 388,950 | $ | 476,443 | |||
Estimated residual receivable(2) | 58,961 | 102,238 | |||||
Gross finance lease receivables(3) | 447,911 | 578,681 | |||||
Unearned income(4) | (141,032 | ) | (165,339 | ) | |||
Net investment in finance leases(5) | $ | 306,879 | $ | 413,342 |
(1) There were no executory costs included in |
Years ending December 31, | |||
2020 | $ | 44,728 | |
2021 | 75,116 | ||
2022 | 50,853 | ||
2023 | 45,010 | ||
2024 | 44,058 | ||
2025 and thereafter | 188,146 | ||
Total | $ | 447,911 |
Contractual Weighted Avg Interest Rate(1) | Maturity Range(1) | June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||
From | To | ||||||||||||||||||||||||||||
Institutional notes | 4.93% | Sep 2021 | Mar 2027 | $ | 648,931 | $ | 1,642,314 | ||||||||||||||||||||||
Asset-backed securitization term notes | 1.98% | Aug 2023 | Feb 2031 | 3,984,805 | 2,920,807 | ||||||||||||||||||||||||
Corporate notes | 2.17% | Jun 2024 | Jun 2031 | 1,700,000 | 0 | ||||||||||||||||||||||||
Term loan facility | 1.49% | May 2026 | May 2026 | 405,000 | 840,000 | ||||||||||||||||||||||||
Asset-backed securitization warehouse | 1.95% | Nov 2027 | Nov 2027 | 185,000 | 264,000 | ||||||||||||||||||||||||
Revolving credit facilities | 1.74% | Sep 2023 | Jul 2024 | 765,000 | 760,500 | ||||||||||||||||||||||||
Finance lease obligations | 4.93% | Feb 2022 | Feb 2022 | 16,186 | 17,304 | ||||||||||||||||||||||||
Total debt outstanding | 7,704,922 | 6,444,925 | |||||||||||||||||||||||||||
Unamortized debt costs | (63,184) | (42,747) | |||||||||||||||||||||||||||
Unamortized debt premiums & discounts | (3,526) | (599) | |||||||||||||||||||||||||||
Unamortized fair value debt adjustment | 1,394 | 1,691 | |||||||||||||||||||||||||||
Debt, net of unamortized costs | $ | 7,639,606 | $ | 6,403,270 |
Contractual Weighted Avg Interest Rate(1) | Maturity Range(1) | June 30, 2020 | December 31, 2019 | ||||||||||
From | To | ||||||||||||
Institutional notes | 4.59% | Sep 2020 | Jun 2029 | $ | 1,733,671 | $ | 1,957,557 | ||||||
Asset-backed securitization term notes | 3.26% | May 2022 | Jun 2028 | 2,527,680 | 2,719,206 | ||||||||
Term loan facilities | 1.71% | Apr 2022 | Nov 2023 | 1,144,875 | 1,200,375 | ||||||||
Asset-backed securitization warehouse | 1.94% | Dec 2025 | Dec 2025 | 470,000 | 370,000 | ||||||||
Revolving credit facilities | 1.78% | Sep 2023 | Jul 2024 | 718,500 | 410,000 | ||||||||
Finance lease obligations | 4.93% | Feb 2024 | Feb 2024 | 18,392 | 27,024 | ||||||||
Total debt outstanding | 6,613,118 | 6,684,162 | |||||||||||
Unamortized debt costs | (34,088 | ) | (39,781 | ) | |||||||||
Unamortized debt premiums & discounts | (3,514 | ) | (4,065 | ) | |||||||||
Unamortized fair value debt adjustment | (6,410 | ) | (8,791 | ) | |||||||||
Debt, net of unamortized costs | $ | 6,569,106 | $ | 6,631,525 |
Balance Outstanding | Contractual Weighted Avg Interest Rate | Maturity Range | Weighted Avg Remaining Term | ||||||||||||||||||||||||||
From | To | ||||||||||||||||||||||||||||
Excluding impact of derivative instruments: | |||||||||||||||||||||||||||||
Fixed-rate debt | $5,717,820 | 2.42% | Sep 2021 | Jun 2031 | 5.0 years | ||||||||||||||||||||||||
Floating-rate debt | $1,987,102 | 1.68% | Aug 2023 | Nov 2027 | 3.2 years | ||||||||||||||||||||||||
Including impact of derivative instruments: | |||||||||||||||||||||||||||||
Fixed-rate debt | $5,717,820 | 2.42% | |||||||||||||||||||||||||||
Hedged floating-rate debt | $1,671,477 | 3.59% | |||||||||||||||||||||||||||
Total fixed and hedged debt | $7,389,297 | 2.68% | |||||||||||||||||||||||||||
Unhedged floating-rate debt | $315,625 | 1.68% | |||||||||||||||||||||||||||
Total | $7,704,922 | 2.64% |
Balance Outstanding | Contractual Weighted Avg Interest Rate | Maturity Range | Weighted Avg Remaining Term | ||||||
From | To | ||||||||
Excluding impact of derivative instruments: | |||||||||
Fixed-rate debt | $3,589,395 | 4.20% | Sep 2020 | Jun 2029 | 3.3 years | ||||
Floating-rate debt | $3,023,723 | 1.78% | Apr 2022 | Dec 2025 | 3.3 years | ||||
Including impact of derivative instruments: | |||||||||
Fixed-rate debt | $3,589,395 | 4.20% | |||||||
Hedged floating-rate debt | 1,822,973 | 3.58% | |||||||
Total fixed and hedged debt | 5,412,368 | 3.99% | |||||||
Unhedged floating-rate debt | 1,200,750 | 1.78% | |||||||
Total | $6,613,118 | 3.59% |
Date | Total Offering | Contractual Weighted Avg Interest Rate | Maturity | ||||||||||||||||||||
April 15, 2021 | $600.0 Million | 2.05% | Apr 2026 | ||||||||||||||||||||
June 7, 2021 | $500.0 Million | 1.15% | Jun 2024 | ||||||||||||||||||||
June 7, 2021 | $600.0 Million | 3.15% | Jun 2031 | ||||||||||||||||||||
Date | Total Offering | Contractual Weighted Avg Interest Rate | Expected Maturity | ||||||||||||||||||||
February 3, 2021 | $502.9 Million | 1.69% | Feb 2031 | ||||||||||||||||||||
March 17, 2021 | $725.0 Million | 1.89% | Dec 2030 | ||||||||||||||||||||
Derivative Instrument | Date Canceled | Notional Amount | Funds Received | |||||||||||||||||
Interest rate swap | January 25, 2021 | $150.0 million | $0.3 million | |||||||||||||||||
Interest rate swap | January 27, 2021 | $150.0 million | $0.3 million | |||||||||||||||||
Interest rate swap | February 19, 2021 | $150.0 million | $2.4 million | |||||||||||||||||
Interest rate swap | February 19, 2021 | $150.0 million | $2.4 million | |||||||||||||||||
Derivative Instrument | Date Canceled | Notional Amount | Funds Received (Paid) | |||||||||||||||||
Interest rate swap | June 25, 2021 | $72.5 million | $0 million | |||||||||||||||||
Interest rate swap | June 25, 2021 | $195.9 million | $(0.9) million |
Derivatives | Notional Amount | Weighted Average Fixed Leg (Pay) Interest Rate | Cap Rate | Weighted Average Remaining Term | ||||||||||||||||||||||
Interest Rate Swap(1) | $ | n/a | ||||||||||||||||||||||||
Interest Rate Cap | $ | n/a | 5.5% |
(1) The impact of forward starting swaps will increase total notional amount by $350.0 million and increase the weighted average remaining term to 5.6 years. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
Financial statement caption | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Non-Designated Derivative Instruments | |||||||||||||||||||||||||||||
Realized (gains) losses | Other (income) expense, net | $ | 0 | $ | 11 | $ | 0 | $ | (224) | ||||||||||||||||||||
Realized (gains) losses | Debt termination expense | $ | 883 | $ | 0 | $ | 883 | $ | 0 | ||||||||||||||||||||
Unrealized (gains) losses | Other (income) expense, net | $ | 0 | $ | (11) | $ | 0 | $ | 286 | ||||||||||||||||||||
Designated Derivative Instruments | |||||||||||||||||||||||||||||
Realized (gains) losses | Interest and debt (income) expense | $ | 7,439 | $ | 6,189 | $ | 15,009 | $ | 7,448 | ||||||||||||||||||||
Unrealized (gains) losses | Comprehensive (income) loss | $ | 24,286 | $ | 17,624 | $ | (41,122) | $ | 147,238 | ||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Derivative Instrument | Financial statement caption | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Non-designated derivative instruments | Realized (gain) loss on derivative instruments, net | $ | 11 | $ | (669 | ) | $ | (224 | ) | $ | (1,373 | ) | |||||
Non-designated derivative instruments | Unrealized (gain) loss on derivative instruments, net | $ | (11 | ) | $ | 1,267 | $ | 286 | $ | 2,253 | |||||||
Designated derivative instruments | Interest and debt (income) expense | $ | 6,189 | $ | (2,307 | ) | $ | 7,448 | $ | (4,662 | ) | ||||||
Designated derivative instruments | Comprehensive loss | $ | 17,624 | $ | 35,330 | $ | 147,238 | $ | 51,797 |
Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Equipment Leasing | Equipment Trading | Totals | Equipment Leasing | Equipment Trading | Totals | ||||||||||||||||||||||||||||||
Total leasing revenues | $ | 366,989 | $ | 2,795 | $ | 369,784 | $ | 319,620 | $ | 1,777 | $ | 321,397 | |||||||||||||||||||||||
Trading margin | 0 | 10,726 | 10,726 | 0 | 2,020 | 2,020 | |||||||||||||||||||||||||||||
Net gain on sale of leasing equipment | 31,391 | 0 | 31,391 | 4,537 | 0 | 4,537 | |||||||||||||||||||||||||||||
Depreciation and amortization expense | 153,881 | 175 | 154,056 | 133,116 | 176 | 133,292 | |||||||||||||||||||||||||||||
Interest and debt expense | 59,594 | 410 | 60,004 | 66,483 | 391 | 66,874 | |||||||||||||||||||||||||||||
Segment income (loss) before income taxes(1) | 157,324 | 11,488 | 168,812 | 74,843 | 2,433 | 77,276 | |||||||||||||||||||||||||||||
Purchases of leasing equipment and investments in finance leases(2) | $ | 1,138,632 | $ | 0 | $ | 1,138,632 | $ | 157,382 | $ | 0 | $ | 157,382 | |||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Equipment Leasing | Equipment Trading | Totals | Equipment Leasing | Equipment Trading | Totals | ||||||||||||||||||||||||||||||
Total leasing revenues | $ | 710,794 | $ | 5,733 | $ | 716,527 | $ | 640,657 | $ | 2,208 | $ | 642,865 | |||||||||||||||||||||||
Trading margin | 0 | 18,867 | 18,867 | 0 | 3,953 | 3,953 | |||||||||||||||||||||||||||||
Net gain on sale of leasing equipment | 53,358 | 0 | 53,358 | 8,614 | 0 | 8,614 | |||||||||||||||||||||||||||||
Depreciation and amortization expense | 297,018 | 345 | 297,363 | 265,634 | 353 | 265,987 | |||||||||||||||||||||||||||||
Interest and debt expense | 113,815 | 812 | 114,627 | 135,182 | 694 | 135,876 | |||||||||||||||||||||||||||||
Segment income (loss) before income taxes(1) | 299,513 | 20,874 | 320,387 | 156,360 | 3,826 | 160,186 | |||||||||||||||||||||||||||||
Purchases of leasing equipment and investments in finance leases(2) | $ | 1,717,843 | $ | 0 | $ | 1,717,843 | $ | 219,788 | $ | 0 | $ | 219,788 |
Three Months Ended June 30, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Equipment Leasing | Equipment Trading | Totals | Equipment Leasing | Equipment Trading | Totals | ||||||||||||||||||
Total leasing revenues | $ | 319,620 | $ | 1,777 | $ | 321,397 | $ | 337,897 | $ | 669 | $ | 338,566 | |||||||||||
Trading margin | — | 2,020 | 2,020 | — | 4,496 | 4,496 | |||||||||||||||||
Net gain on sale of leasing equipment | 4,537 | — | 4,537 | 7,519 | — | 7,519 | |||||||||||||||||
Depreciation and amortization expense | 133,116 | 176 | 133,292 | 135,181 | 167 | 135,348 | |||||||||||||||||
Interest and debt expense | 66,483 | 391 | 66,874 | 81,883 | 377 | 82,260 | |||||||||||||||||
Realized (gain) loss on derivative instruments, net | 11 | — | 11 | (667 | ) | (2 | ) | (669 | ) | ||||||||||||||
Income (loss) before income taxes(1) | 74,843 | 2,433 | 77,276 | 92,294 | 3,669 | 95,963 | |||||||||||||||||
Purchases of leasing equipment and investments in finance leases(2) | $ | 157,382 | $ | — | $ | 157,382 | $ | 106,005 | $ | — | $ | 106,005 |
Six Months Ended June 30, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Equipment Leasing | Equipment Trading | Totals | Equipment Leasing | Equipment Trading | Totals | ||||||||||||||||||
Total leasing revenues | $ | 640,657 | $ | 2,208 | $ | 642,865 | $ | 677,967 | $ | 1,458 | $ | 679,425 | |||||||||||
Trading margin | — | 3,953 | 3,953 | — | 8,083 | 8,083 | |||||||||||||||||
Net gain on sale of leasing equipment | 8,614 | — | 8,614 | 15,988 | — | 15,988 | |||||||||||||||||
Depreciation and amortization expense | 265,634 | 353 | 265,987 | 269,603 | 354 | 269,957 | |||||||||||||||||
Interest and debt expense | 135,182 | 694 | 135,876 | 165,057 | 723 | 165,780 | |||||||||||||||||
Realized (gain) loss on derivative instruments, net | (223 | ) | (1 | ) | (224 | ) | (1,369 | ) | (4 | ) | (1,373 | ) | |||||||||||
Income (loss) before income taxes(1) | 156,360 | 3,826 | 160,186 | 190,760 | 6,850 | 197,610 | |||||||||||||||||
Purchases of leasing equipment and investments in finance leases(2) | $ | 219,788 | $ | — | $ | 219,788 | $ | 149,986 | $ | — | $ | 149,986 |
June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Equipment Leasing | Equipment Trading | Totals | Equipment Leasing | Equipment Trading | Totals | ||||||||||||||||||
Equipment held for sale | $ | 106,035 | $ | 38,921 | $ | 144,956 | $ | 89,755 | $ | 24,749 | $ | 114,504 | |||||||||||
Goodwill | 220,864 | 15,801 | 236,665 | 220,864 | 15,801 | 236,665 | |||||||||||||||||
Total assets | $ | 9,563,689 | $ | 118,065 | $ | 9,681,754 | $ | 9,596,263 | $ | 46,370 | $ | 9,642,633 |
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Equipment Leasing | Equipment Trading | Totals | Equipment Leasing | Equipment Trading | Totals | ||||||||||||||||||||||||||||||
Equipment held for sale | $ | 14,368 | $ | 21,446 | $ | 35,814 | $ | 43,275 | $ | 24,036 | $ | 67,311 | |||||||||||||||||||||||
Goodwill | 220,864 | 15,801 | 236,665 | 220,864 | 15,801 | 236,665 | |||||||||||||||||||||||||||||
Total assets | $ | 11,242,922 | $ | 92,436 | $ | 11,335,358 | $ | 9,612,251 | $ | 100,282 | $ | 9,712,533 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Total equipment leasing revenues: | |||||||||||||||||||||||
Asia | $ | 135,853 | $ | 117,574 | $ | 259,747 | $ | 238,380 | |||||||||||||||
Europe | 194,070 | 163,214 | 380,443 | 327,477 | |||||||||||||||||||
Americas | 27,336 | 30,352 | 52,049 | 56,613 | |||||||||||||||||||
Bermuda | 597 | 438 | 1,172 | 881 | |||||||||||||||||||
Other International | 11,928 | 9,819 | 23,116 | 19,514 | |||||||||||||||||||
Total | $ | 369,784 | $ | 321,397 | $ | 716,527 | $ | 642,865 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Total equipment leasing revenues: | |||||||||||||||
Asia | $ | 117,574 | $ | 134,355 | $ | 238,380 | $ | 271,805 | |||||||
Europe | 163,214 | 163,436 | 327,477 | 325,993 | |||||||||||
Americas | 30,352 | 30,908 | 56,613 | 61,690 | |||||||||||
Bermuda | 438 | 539 | 881 | 1,217 | |||||||||||
Other International | 9,819 | 9,328 | 19,514 | 18,720 | |||||||||||
Total | $ | 321,397 | $ | 338,566 | $ | 642,865 | $ | 679,425 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Total equipment trading revenues: | |||||||||||||||||||||||
Asia | $ | 14,310 | $ | 3,154 | $ | 21,769 | $ | 4,686 | |||||||||||||||
Europe | 5,040 | 5,261 | 12,162 | 10,213 | |||||||||||||||||||
Americas | 10,834 | 6,844 | 19,375 | 13,439 | |||||||||||||||||||
Bermuda | 0 | 0 | 0 | 0 | |||||||||||||||||||
Other International | 2,999 | 1,644 | 5,822 | 3,945 | |||||||||||||||||||
Total | $ | 33,183 | $ | 16,903 | $ | 59,128 | $ | 32,283 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Total equipment trading revenues: | |||||||||||||||
Asia | $ | 3,154 | $ | 3,693 | $ | 4,686 | $ | 6,985 | |||||||
Europe | 5,261 | 7,560 | 10,213 | 12,431 | |||||||||||
Americas | 6,844 | 9,288 | 13,439 | 16,053 | |||||||||||
Bermuda | — | — | — | — | |||||||||||
Other International | 1,644 | 2,668 | 3,945 | 5,568 | |||||||||||
Total | $ | 16,903 | $ | 23,209 | $ | 32,283 | $ | 41,037 |
Preferred Share Offering | Dividend Rate | Dividend Per Share | ||||||||||||
Series A | 8.500% | $0.5312500 | ||||||||||||
Series B | 8.000% | $0.5000000 | ||||||||||||
Series C | 7.375% | $0.4609375 | ||||||||||||
Series D | 6.875% | $0.4296875 |
Equipment Fleet in Units | Equipment Fleet in TEU | ||||||||||||||||||||||||||||||||||
June 30, 2021 | December 31, 2020 | June 30, 2020 | June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||||||||||||||||||||||
Dry | 3,604,794 | 3,295,908 | 3,215,482 | 6,084,381 | 5,466,421 | 5,287,639 | |||||||||||||||||||||||||||||
Refrigerated | 236,978 | 227,519 | 227,018 | 459,389 | 439,956 | 438,380 | |||||||||||||||||||||||||||||
Special | 93,238 | 93,885 | 93,996 | 170,259 | 170,792 | 170,977 | |||||||||||||||||||||||||||||
Tank | 11,513 | 11,312 | 12,439 | 11,513 | 11,312 | 12,439 | |||||||||||||||||||||||||||||
Chassis | 24,275 | 24,781 | 24,133 | 44,391 | 45,188 | 44,524 | |||||||||||||||||||||||||||||
Equipment leasing fleet | 3,970,798 | 3,653,405 | 3,573,068 | 6,769,933 | 6,133,669 | 5,953,959 | |||||||||||||||||||||||||||||
Equipment trading fleet | 53,802 | 64,243 | 79,778 | 84,455 | 98,991 | 123,377 | |||||||||||||||||||||||||||||
Total | 4,024,600 | 3,717,648 | 3,652,846 | 6,854,388 | 6,232,660 | 6,077,336 | |||||||||||||||||||||||||||||
Equipment Fleet in Units | Equipment Fleet in TEU | ||||||||||||||||
June 30, 2020 | December 31, 2019 | June 30, 2019 | June 30, 2020 | December 31, 2019 | June 30, 2019 | ||||||||||||
Dry | 3,215,482 | 3,267,624 | 3,312,750 | 5,287,639 | 5,369,377 | 5,433,686 | |||||||||||
Refrigerated | 227,018 | 225,520 | 228,353 | 438,380 | 435,148 | 440,340 | |||||||||||
Special | 93,996 | 94,453 | 94,695 | 170,977 | 171,437 | 171,294 | |||||||||||
Tank | 12,439 | 12,485 | 12,572 | 12,439 | 12,485 | 12,572 | |||||||||||
Chassis | 24,133 | 24,515 | 24,856 | 44,524 | 45,154 | 45,765 | |||||||||||
Equipment leasing fleet | 3,573,068 | 3,624,597 | 3,673,226 | 5,953,959 | 6,033,601 | 6,103,657 | |||||||||||
Equipment trading fleet | 79,778 | 17,906 | 18,205 | 123,377 | 27,121 | 27,483 | |||||||||||
Total | 3,652,846 | 3,642,503 | 3,691,431 | 6,077,336 | 6,060,722 | 6,131,140 |
Equipment Fleet in CEU (1) | |||||||||||||||||
June 30, 2021 | December 31, 2020 | June 30, 2020 | |||||||||||||||
Operating leases | 7,171,845 | 6,649,350 | 6,478,561 | ||||||||||||||
Finance leases | 369,130 | 295,784 | 317,159 | ||||||||||||||
Equipment trading fleet | 82,980 | 98,420 | 120,654 | ||||||||||||||
Total | 7,623,955 | 7,043,554 | 6,916,374 | ||||||||||||||
Equipment Fleet in CEU (1) | ||||||||
June 30, 2020 | December 31, 2019 | June 30, 2019 | ||||||
Operating leases | 6,478,561 | 6,434,434 | 6,499,909 | |||||
Finance leases | 317,159 | 423,638 | 438,986 | |||||
Equipment trading fleet | 120,654 | 37,232 | 41,966 | |||||
Total | 6,916,374 | 6,895,304 | 6,980,861 |
Equipment Type | Percentage of total fleet in units | Percentage of total fleet in CEU | |||||||||
Dry | 89.6 | % | 69.9 | % | |||||||
Refrigerated | 5.9 | 23.0 | |||||||||
Special | 2.3 | 3.1 | |||||||||
Tank | 0.3 | 1.2 | |||||||||
Chassis | 0.6 | 1.7 | |||||||||
Equipment leasing fleet | 98.7 | 98.9 | |||||||||
Equipment trading fleet | 1.3 | 1.1 | |||||||||
Total | 100.0 | % | 100.0 | % |
Equipment Type | Percentage of total fleet in units | Percentage of total fleet in CEU | |||
Dry | 88.0 | % | 67.3 | % | |
Refrigerated | 6.2 | 24.3 | |||
Special | 2.6 | 3.5 | |||
Tank | 0.3 | 1.4 | |||
Chassis | 0.7 | 1.8 | |||
Equipment leasing fleet | 97.8 | 98.3 | |||
Equipment trading fleet | 2.2 | 1.7 | |||
Total | 100.0 | % | 100.0 | % |
Lease Portfolio | June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||||||
Long-term leases | 75.3 | % | 73.8 | % | 71.5 | % | |||||||||||
Finance leases | 5.0 | 4.4 | 5.2 | ||||||||||||||
Service leases | 6.0 | 7.2 | 7.7 | ||||||||||||||
Expired long-term leases (units on-hire) | 13.7 | 14.6 | 15.6 | ||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
Lease Portfolio | June 30, 2020 | December 31, 2019 | June 30, 2019 | |||||
Long-term leases | 71.5 | % | 69.5 | % | 67.2 | % | ||
Finance leases | 5.2 | 6.8 | 6.8 | |||||
Service leases | 7.7 | 7.8 | 8.8 | |||||
Expired long-term leases (units on-hire) | 15.6 | 15.9 | 17.2 | |||||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
Quarter Ended | |||||||||||||||||||||||||||||
June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | |||||||||||||||||||||||||
Average Utilization | 99.4 | % | 99.1 | % | 98.1 | % | 96.1 | % | 95.0 | % | |||||||||||||||||||
Ending Utilization | 99.5 | % | 99.3 | % | 98.9 | % | 97.4 | % | 94.8 | % |
Quarter Ended | ||||||||||||||
June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | June 30, 2019 | ||||||||||
Average Utilization(1) | 95.0 | % | 95.4 | % | 95.8 | % | 96.7 | % | 97.2 | % | ||||
Ending Utilization(1) | 94.8 | % | 95.3 | % | 95.4 | % | 96.4 | % | 97.1 | % |
June 30, 2021 | Maximum Borrowing Level | ||||||||||
Institutional notes | $ | 648.9 | $ | 648.9 | |||||||
Asset-backed securitization term notes | 3,984.8 | 3,984.8 | |||||||||
Corporate notes | 1,700.0 | 1,700.0 | |||||||||
Term loan facility | 405.0 | 1,200.0 | |||||||||
Asset-backed securitization warehouse | 185.0 | 1,125.0 | |||||||||
Revolving credit facilities | 765.0 | 1,560.0 | |||||||||
Finance lease obligations | 16.2 | 16.2 | |||||||||
Total debt outstanding | $ | 7,704.9 | $ | 10,234.9 | |||||||
Unamortized debt costs | (63.2) | — | |||||||||
Unamortized debt premiums & discounts | (3.5) | — | |||||||||
Unamortized fair value debt adjustment | 1.4 | — | |||||||||
Debt, net of unamortized costs | $ | 7,639.6 | $ | 10,234.9 |
June 30, 2020 | Maximum Borrowing Level | ||||||
Institutional notes | $ | 1,733.7 | $ | 1,733.7 | |||
Asset-backed securitization term notes | 2,527.6 | 2,527.6 | |||||
Term loan facilities | 1,144.9 | 1,144.9 | |||||
Asset-backed securitization warehouse | 470.0 | 800.0 | |||||
Revolving credit facilities | 718.5 | 1,560.0 | |||||
Finance lease obligations | 18.4 | 18.4 | |||||
Total debt outstanding | 6,613.1 | 7,784.6 | |||||
Unamortized debt costs | (34.1 | ) | — | ||||
Unamortized debt premiums & discounts | (3.5 | ) | — | ||||
Unamortized fair value debt adjustment | (6.4 | ) | — | ||||
Debt, net of unamortized costs | $ | 6,569.1 | $ | 7,784.6 |
TCIL | TAL | |||||||||||||||||||||||||
Financial Covenant | Covenant | Actual | Covenant | Actual | ||||||||||||||||||||||
Fixed charge coverage ratio | Shall not be less than 1.25:1 | 2.15:1 | Shall not be less than 1.10:1 | 2.98:1 | ||||||||||||||||||||||
Minimum net worth | Shall not be less than $855 million | $2,153.4 million | Shall not be less than $500 million | $1,032.1 million | ||||||||||||||||||||||
Leverage ratio | Shall not exceed 4.0:1 | 2.78:1 | Shall not exceed 4.75:1 | 1.48:1 | ||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
Net cash provided by (used in) operating activities | $ | 613,319 | $ | 416,569 | |||||||
Net cash provided by (used in) investing activities | $ | (1,600,092) | $ | (118,028) | |||||||
Net cash provided by (used in) financing activities | $ | 1,039,653 | $ | (116,630) |
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
Net cash provided by (used in) operating activities | $ | 416,569 | $ | 501,814 | |||
Net cash provided by (used in) investing activities | $ | (118,028 | ) | $ | (43,513 | ) | |
Net cash provided by (used in) financing activities | $ | (116,630 | ) | $ | (457,455 | ) |
Three Months Ended June 30, | |||||||||||||||||
2021 | 2020 | Variance | |||||||||||||||
Leasing revenues: | |||||||||||||||||
Operating leases | $ | 360,859 | $ | 313,423 | $ | 47,436 | |||||||||||
Finance leases | 8,925 | 7,974 | 951 | ||||||||||||||
Total leasing revenues | 369,784 | 321,397 | 48,387 | ||||||||||||||
Equipment trading revenues | 33,183 | 16,903 | 16,280 | ||||||||||||||
Equipment trading expenses | (22,457) | (14,883) | (7,574) | ||||||||||||||
Trading margin | 10,726 | 2,020 | 8,706 | ||||||||||||||
Net gain on sale of leasing equipment | 31,391 | 4,537 | 26,854 | ||||||||||||||
Operating expenses: | |||||||||||||||||
Depreciation and amortization | 154,056 | 133,292 | 20,764 | ||||||||||||||
Direct operating expenses | 6,337 | 29,619 | (23,282) | ||||||||||||||
Administrative expenses | 22,979 | 20,472 | 2,507 | ||||||||||||||
Provision (reversal) for doubtful accounts | (26) | 374 | (400) | ||||||||||||||
Total operating expenses | 183,346 | 183,757 | (411) | ||||||||||||||
Operating income (loss) | 228,555 | 144,197 | 84,358 | ||||||||||||||
Other expenses: | |||||||||||||||||
Interest and debt expense | 60,004 | 66,874 | (6,870) | ||||||||||||||
Debt termination expense | 89,863 | — | 89,863 | ||||||||||||||
Other (income) expense, net | (261) | 36 | (297) | ||||||||||||||
Total other expenses | 149,606 | 66,910 | 82,696 | ||||||||||||||
Income (loss) before income taxes | 78,949 | 77,287 | 1,662 | ||||||||||||||
Income tax expense (benefit) | 13,732 | 6,699 | 7,033 | ||||||||||||||
Net income (loss) | $ | 65,217 | $ | 70,588 | $ | (5,371) | |||||||||||
Less: dividend on preferred shares | 10,513 | 10,513 | — | ||||||||||||||
Net income (loss) attributable to common shareholders | $ | 54,704 | $ | 60,075 | $ | (5,371) |
Three Months Ended June 30, | |||||||||||
2020 | 2019 | Variance | |||||||||
Leasing revenues: | |||||||||||
Operating leases | $ | 313,423 | $ | 328,370 | $ | (14,947 | ) | ||||
Finance leases | 7,974 | 10,196 | (2,222 | ) | |||||||
Total leasing revenues | 321,397 | 338,566 | (17,169 | ) | |||||||
Equipment trading revenues | 16,903 | 23,209 | (6,306 | ) | |||||||
Equipment trading expenses | (14,883 | ) | (18,713 | ) | 3,830 | ||||||
Trading margin | 2,020 | 4,496 | (2,476 | ) | |||||||
Net gain on sale of leasing equipment | 4,537 | 7,519 | (2,982 | ) | |||||||
Operating expenses: | |||||||||||
Depreciation and amortization | 133,292 | 135,348 | (2,056 | ) | |||||||
Direct operating expenses | 29,619 | 18,097 | 11,522 | ||||||||
Administrative expenses | 20,472 | 19,988 | 484 | ||||||||
Provision (reversal) for doubtful accounts | 374 | 521 | (147 | ) | |||||||
Total operating expenses | 183,757 | 173,954 | 9,803 | ||||||||
Operating income (loss) | 144,197 | 176,627 | (32,430 | ) | |||||||
Other expenses: | |||||||||||
Interest and debt expense | 66,874 | 82,260 | (15,386 | ) | |||||||
Realized (gain) loss on derivative instruments, net | 11 | (669 | ) | 680 | |||||||
Unrealized (gain) loss on derivative instruments, net | (11 | ) | 1,267 | (1,278 | ) | ||||||
Debt termination expense | — | 558 | (558 | ) | |||||||
Other (income) expense, net | 36 | (927 | ) | 963 | |||||||
Total other expenses | 66,910 | 82,489 | (15,579 | ) | |||||||
Income (loss) before income taxes | 77,287 | 94,138 | (16,851 | ) | |||||||
Income tax expense (benefit) | 6,699 | 8,042 | (1,343 | ) | |||||||
Net income (loss) | $ | 70,588 | $ | 86,096 | $ | (15,508 | ) | ||||
Less: dividend on preferred shares | 10,513 | 2,025 | 8,488 | ||||||||
Net income (loss) attributable to common shareholders | $ | 60,075 | $ | 84,071 | $ | (23,996 | ) |
Three Months Ended June 30, | |||||||||||||||||
2021 | 2020 | Variance | |||||||||||||||
Leasing revenues: | |||||||||||||||||
Operating leases | |||||||||||||||||
Per diem revenues | $ | 353,277 | $ | 294,748 | $ | 58,529 | |||||||||||
Fee and ancillary revenues | 7,582 | 18,675 | (11,093) | ||||||||||||||
Total operating lease revenues | 360,859 | 313,423 | 47,436 | ||||||||||||||
Finance leases | 8,925 | 7,974 | 951 | ||||||||||||||
Total leasing revenues | $ | 369,784 | $ | 321,397 | $ | 48,387 |
Three Months Ended June 30, | |||||||||||
2020 | 2019 | Variance | |||||||||
Leasing revenues: | |||||||||||
Operating leases | |||||||||||
Per diem revenues | $ | 294,748 | $ | 312,042 | $ | (17,294 | ) | ||||
Fee and ancillary revenues | 18,675 | 16,328 | 2,347 | ||||||||
Total operating lease revenues | 313,423 | 328,370 | (14,947 | ) | |||||||
Finance leases | 7,974 | 10,196 | (2,222 | ) | |||||||
Total leasing revenues | $ | 321,397 | $ | 338,566 | $ | (17,169 | ) |
Six Months Ended June 30, | |||||||||||||||||
2021 | 2020 | Variance | |||||||||||||||
Leasing revenues: | |||||||||||||||||
Operating leases | $ | 700,653 | $ | 626,227 | $ | 74,426 | |||||||||||
Finance leases | 15,874 | 16,638 | (764) | ||||||||||||||
Total leasing revenues | 716,527 | 642,865 | 73,662 | ||||||||||||||
Equipment trading revenues | 59,128 | 32,283 | 26,845 | ||||||||||||||
Equipment trading expenses | (40,261) | (28,330) | (11,931) | ||||||||||||||
Trading margin | 18,867 | 3,953 | 14,914 | ||||||||||||||
Net gain on sale of leasing equipment | 53,358 | 8,614 | 44,744 | ||||||||||||||
Operating expenses: | |||||||||||||||||
Depreciation and amortization | 297,363 | 265,987 | 31,376 | ||||||||||||||
Direct operating expenses | 15,707 | 52,867 | (37,160) | ||||||||||||||
Administrative expenses | 43,900 | 39,697 | 4,203 | ||||||||||||||
Provision (reversal) for doubtful accounts | (2,490) | 4,653 | (7,143) | ||||||||||||||
Total operating expenses | 354,480 | 363,204 | (8,724) | ||||||||||||||
Operating income (loss) | 434,272 | 292,228 | 142,044 | ||||||||||||||
Other expenses: | |||||||||||||||||
Interest and debt expense | 114,627 | 135,876 | (21,249) | ||||||||||||||
Debt termination expense | 89,863 | 31 | 89,832 | ||||||||||||||
Other (income) expense, net | (742) | (3,548) | 2,806 | ||||||||||||||
Total other expenses | 203,748 | 132,359 | 71,389 | ||||||||||||||
Income (loss) before income taxes | 230,524 | 159,869 | 70,655 | ||||||||||||||
Income tax expense (benefit) | 25,469 | 12,245 | 13,224 | ||||||||||||||
Net income (loss) | $ | 205,055 | $ | 147,624 | $ | 57,431 | |||||||||||
Less: dividend on preferred shares | 21,026 | 20,338 | 688 | ||||||||||||||
Net income (loss) attributable to common shareholders | $ | 184,029 | $ | 127,286 | $ | 56,743 |
Six Months Ended June 30, | |||||||||||
2020 | 2019 | Variance | |||||||||
Leasing revenues: | |||||||||||
Operating leases | $ | 626,227 | $ | 658,792 | $ | (32,565 | ) | ||||
Finance leases | 16,638 | 20,633 | (3,995 | ) | |||||||
Total leasing revenues | 642,865 | 679,425 | (36,560 | ) | |||||||
Equipment trading revenues | 32,283 | 41,037 | (8,754 | ) | |||||||
Equipment trading expenses | (28,330 | ) | (32,954 | ) | 4,624 | ||||||
Trading margin | 3,953 | 8,083 | (4,130 | ) | |||||||
Net gain on sale of leasing equipment | 8,614 | 15,988 | (7,374 | ) | |||||||
Operating expenses: | |||||||||||
Depreciation and amortization | 265,987 | 269,957 | (3,970 | ) | |||||||
Direct operating expenses | 52,867 | 34,899 | 17,968 | ||||||||
Administrative expenses | 39,697 | 38,175 | 1,522 | ||||||||
Provision (reversal) for doubtful accounts | 4,653 | 379 | 4,274 | ||||||||
Total operating expenses | 363,204 | 343,410 | 19,794 | ||||||||
Operating income (loss) | 292,228 | 360,086 | (67,858 | ) | |||||||
Other expenses: | |||||||||||
Interest and debt expense | 135,876 | 165,780 | (29,904 | ) | |||||||
Realized (gain) loss on derivative instruments, net | (224 | ) | (1,373 | ) | 1,149 | ||||||
Unrealized (gain) loss on derivative instruments, net | 286 | 2,253 | (1,967 | ) | |||||||
Debt termination expense | 31 | 558 | (527 | ) | |||||||
Other (income) expense, net | (3,610 | ) | (1,931 | ) | (1,679 | ) | |||||
Total other expenses | 132,359 | 165,287 | (32,928 | ) | |||||||
Income (loss) before income taxes | 159,869 | 194,799 | (34,930 | ) | |||||||
Income tax expense (benefit) | 12,245 | 15,892 | (3,647 | ) | |||||||
Net income (loss) | $ | 147,624 | $ | 178,907 | $ | (31,283 | ) | ||||
Less: income (loss) attributable to noncontrolling interest | — | 592 | (592 | ) | |||||||
Less: dividend on preferred shares | 20,338 | 2,330 | 18,008 | ||||||||
Net income (loss) attributable to common shareholders | $ | 127,286 | $ | 175,985 | $ | (48,699 | ) |
Six Months Ended June 30, | |||||||||||||||||
2021 | 2020 | Variance | |||||||||||||||
Leasing revenues: | |||||||||||||||||
Operating leases | |||||||||||||||||
Per diem revenues | $ | 684,529 | $ | 593,234 | $ | 91,295 | |||||||||||
Fee and ancillary revenues | 16,124 | 32,993 | (16,869) | ||||||||||||||
Total operating lease revenues | 700,653 | 626,227 | 74,426 | ||||||||||||||
Finance leases | 15,874 | 16,638 | (764) | ||||||||||||||
Total leasing revenues | $ | 716,527 | $ | 642,865 | $ | 73,662 |
Six Months Ended June 30, | |||||||||||
2020 | 2019 | Variance | |||||||||
Leasing revenues: | |||||||||||
Operating leases | |||||||||||
Per diem revenues | $ | 593,234 | $ | 627,394 | $ | (34,160 | ) | ||||
Fee and ancillary revenues | 32,993 | 31,398 | 1,595 | ||||||||
Total operating lease revenues | 626,227 | 658,792 | (32,565 | ) | |||||||
Finance leases | 16,638 | 20,633 | (3,995 | ) | |||||||
Total leasing revenues | $ | 642,865 | $ | 679,425 | $ | (36,560 | ) |
Contractual Obligations by Period | |||||||||||||||||||||||||||||||||||||||||
Contractual Obligations: | Total | Remaining 2021 | 2022 | 2023 | 2024 | 2025 | 2026 and thereafter | ||||||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
Principal debt obligations | $ | 7,688.6 | $ | 295.0 | $ | 662.5 | $ | 858.1 | $ | 1,885.1 | $ | 386.3 | $ | 3,601.6 | |||||||||||||||||||||||||||
Interest on debt obligations(1) | 963.9 | 103.5 | 190.9 | 168.0 | 130.7 | 103.6 | 267.2 | ||||||||||||||||||||||||||||||||||
Finance lease obligations(2) | 16.7 | 1.5 | 15.2 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Operating leases (mainly facilities) | 7.9 | 1.8 | 3.5 | 2.1 | 0.4 | 0.1 | — | ||||||||||||||||||||||||||||||||||
Purchase obligations: | |||||||||||||||||||||||||||||||||||||||||
Equipment purchases payable | 411.5 | 411.5 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Equipment purchase commitments | 1,138.6 | 1,138.6 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total contractual obligations | $ | 10,219.3 | $ | 1,950.1 | $ | 868.6 | $ | 1,026.1 | $ | 2,015.8 | $ | 489.9 | $ | 3,868.8 |
Contractual Obligations by Period | |||||||||||||||||||||||||||
Contractual Obligations: | Total | Remaining 2020 | 2021 | 2022 | 2023 | 2024 | 2025 and thereafter | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||
Principal debt obligations | $ | 6,594.7 | $ | 349.0 | $ | 827.1 | $ | 1,061.6 | $ | 1,648.1 | $ | 1,370.6 | $ | 1,338.3 | |||||||||||||
Interest on debt obligations(1) | 890.6 | 118.2 | 213.0 | 181.7 | 144.8 | 92.9 | 140.0 | ||||||||||||||||||||
Finance lease obligations(2) | 20.6 | 1.5 | 3.1 | 3.1 | 3.1 | 9.8 | — | ||||||||||||||||||||
Operating leases (mainly facilities) | 8.5 | 1.6 | 3.0 | 2.4 | 1.4 | 0.1 | — | ||||||||||||||||||||
Purchase obligations: | |||||||||||||||||||||||||||
Equipment purchases payable | 46.6 | 46.6 | — | — | — | — | — | ||||||||||||||||||||
Equipment purchase commitments | 45.9 | 45.9 | — | — | — | — | — | ||||||||||||||||||||
Total contractual obligations | $ | 7,606.9 | $ | 562.8 | $ | 1,046.2 | $ | 1,248.8 | $ | 1,797.4 | $ | 1,473.4 | $ | 1,478.3 |
Derivatives | Notional Amount | Weighted Average Fixed Leg (Pay) Interest Rate | Cap Rate | Weighted Average Remaining Term | ||||||||||||||||||||||
Interest Rate Swap(1) | $ | n/a | ||||||||||||||||||||||||
Interest Rate Cap | $ | n/a | 5.5% |
Issuer Purchases of Common Shares(1) | ||||||||||
Period | Total number of shares purchased(2) | Average price paid per share | Approximate dollar value of shares that may yet be purchased under the plan (in thousands) | |||||||
April 1, 2020 through April 30, 2020 | 1,057,956 | $ | 28.16 | $ | 193,095 | |||||
May 1, 2020 through May 31, 2020 | 568,373 | $ | 29.06 | $ | 176,569 | |||||
June 1, 2020 through June 30, 2020 | 424,595 | $ | 29.57 | $ | 164,007 | |||||
Total | 2,050,924 | $ | 28.70 | $ | 164,007 |
Number | Exhibit Description | |||||||
Amended and Restated Bye-Laws of |
Certification of the Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended | ||||||||
Certification of the Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as amended | ||||||||
Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350 | ||||||||
Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350 | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear on the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | XBRL Instance Extension Schema | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | |||||||
104 | Cover Page Inline XBRL Data (formatted as Inline XBRL and contained in Exhibit 101) |
* | Filed herewith. | ||||
** | Furnished herewith. |
TRITON INTERNATIONAL LIMITED | ||||||||
July 27, 2021 | ||||||||
By: | ||||||||
/s/ JOHN BURNS | ||||||||
John Burns | ||||||||
Chief Financial Officer |