Triton Outlook and Market Fundamentals
Translating Strong Profitability Into Rapid Value Creation
TYPICAL PRIORITIZATION OF CASH FLOW
($MM, except per share amounts)
FY2022
Cash flow before capex (1)
$1,607
1. Maintain ability to service customers/replacement capex (2)
Cash flow after replacement capex
-$900
~$705
Steady-state cash flow yield (3)
18.2%
2. Pay common dividend of $2.80 per share (4)
-$160
Dividend yield(3)
4.1%
Cash flow after replacement capex and regular dividend
~$545
Capital Allocation Options
3A. Growth capex at constant leverage
- Levered growth in revenue earning assets (5)
- Potential REA growth
3B. Share repurchase
- Percent of outstanding shares at current price
3C. Additional dividends
- Potential additional per share distribution
~$2,180
19.3%
~$545
14.1%
~$545
$9.58
REA per Share
Dec '20
$134
Dec '21
$179
Dec '22
$199
% Chg
49%
TRITON
(1) Excludes certain items. Cash flow before capex is a Non-GAAP financial measure. See Non-GAAP Financial Information in the Appendix.
(2) Approximates depreciation, NBV of disposals, and principal payments on finance leases.
(3) Based on closing stock price of $68.11 on 2/24/23.
(4) Reflects annualized fourth quarter dividend.
(5) Based on 75% debt to revenue earning assets.
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