Textainer Group Holdings Limited (TGH+A) 5 Nov 212021 Q3 Earnings call transcript

Thank you. And welcome to Textainer’s Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be provided at that time.

As a reminder, today’s conference call is being recorded. the Group to Holdings turn Relations Hira, now Textainer for Limited. will call Ankit over Investor I

made. Thank you. update Form filings any estimates, modify March is call actual after may or Please could from XX, securities Certain predictions ended may involve in views, on this events with contain statements factors and all see or information and actual for made under cause the Commission during the for as XXXX statements materially risks outlook that discussion. accordance concerning and results. additional company’s this statements may December or forward-looking in on that differ with and X-K are on U.S. going from quarterly uncertainties, report Securities XXXX filed laws. materially and are future statements the company forward-looking These only to annual no year change XX, to conference obligation subsequent Form described company’s differ The results The plans those within call the XX-F statements. forward, Exchange any this

During will financial discuss measures. this non-GAAP we call,

be are of in most measures accepted with in prepared principles, a found today’s provided either to accounting be will earnings release. call reconciliation As accordance can directly conference measures the such or measures not financial GAAP press non-GAAP generally the comparable this on

the and Investor Textainer’s to and Executive have earnings Relations today, Textainer’s over I provided call. our release Ghesquiere, along comments. that his be we the on Chief also opening Olivier President to now Both like investor.textainer.com. can at found Officer call with the earnings our for turn would release Finally, today’s call comments website slides presentation on earnings accompany

today third to will industry. additional detail. and the over by then and third Textainer’s our am afternoon, financial focus of very to XXXX as for on as of I positive call. a financial greater the your efficiencies. another strategy begin Michael we results highlights perspective you of results then organic open for continued quarter on which, long-term provide growth reviewing questions. call profitable our earnings to will deliver CapEx yet optimized in joining us drive consistent with our Good well proud the I reflects execution everyone results. thank operational the This quarter go After and will quarter

share growing In to addition, very program. capital generation prioritize to we continue supported also program, our dividend strong by and repurchase common reinstatement is to efficient I announce our pleased share outlook. am allocation which the our active of flow And cash

same increased rental a of quarter For million second EBITDA growth when per to a X% excluding $XX environment. the XXXX which the compared Adjusted the quarter XX%. from XX% of diluted third from XX% last $XXX market positive non-recurring impressive or to $X.XX year growth net quarter, quarter and represents and adjusted annualized in driven income million, ROE sequentially, the was by an share, income revenue increased fleet third

performance and for continues challenges driving on strong lease-out our be level ongoing high trade causing ships has This pandemic. we as with demand well historic and gains As enjoy volumes to deployed The tenure main remained depot the bottlenecks volumes the from logistical containers. we season, the factor utilization long allowed turn to sales capacity supply yields us the CapEx and in as containers. favorable traditional by of the chain supported end during peak and reached elevated of

at leased the CEU quarter, maintaining XX.X%. average During and our containers terms, depot factory third out under of rate XXX,XXX we favorable utilization

as we leased continued XXX,XXX almost During our out fleet TEU the significantly. X total to September, months ended expand

containers. for and successfully to the further This with stable maturities leaves secures cyclicality. lifecycle mitigates flows market of loan leases the and into review us cash future life maturing extend continue remaining We useful

deployed XXXX. through $XXX X third of more market $XXX deployed very quarter, for million second which a containers billion half $X.X of approximately the total the addition we months remain the CapEx and orders first is of fourth almost additional delivery in million the in have We $XXX to During the placed active the than a for in in million for of quarter. participant year,

years end average portfolio, lease our now remaining of years. an As contractual entire X.X of of container the tenure has has age excess of a fleet short-term young the X leases, quarter, and including our in average third

for XX As typically, permitted for long-term the our given locations. in to an return a restrictive reminder, rental rates X the of lease months are duration locked additional and in schedule

New preceding consistent management, expect driven and at remained Production increases level, this reasonable have demand, remained is TEU by factory container about to year container must record we years. capacity per ramped cost. however level current material CEU in up sustained in production at level exceed low a and a the in equivalent XXXX. of production. the significantly prices X inventory levels which $X,XXX This line viewed million production Total of with X-month be

position year, our financing. of the also debt the have further During we through strengthened our financial optimization

fixed As of now remaining tenure of with rate, excess X with our XX% end interest our of the at debt the of rate quarter, in an stands effective X.X%, years. at average

achieved effectively optimized several will and next tenure the from continue attractive debt, longer rate in benefit gains. locked economic de-risking fixed the long-term lease which we years, through Over to the has

full favorable to level to of into consumer inventory to Cargo high XXXX environment XXXX, the restocking low spending, for to the we we continued remain port year and congestion. of current the the worldwide continue. and volumes the are expected expect the As of balance market due macro the look year strong

manufacturers a costs We prices to container approach capacity to and remain as high production maintained new have expect disciplined component also increased. as

from continue benefit very to to Overall, further market expect as favorable corresponding we by customers well ongoing to to and prices freight rate support We ocean the high limited resale high our rates. utilization condition as supported this continue supply. expect strong

quarters the Nonetheless, to XXXX, container expect growth prices. conditions container the following of of historical see anticipate a expect of we continued through we more sheet persist market return the high level container we to given balance projected production. several normalized a our current to tailwinds CapEx While driving

We through accretive on long-term dividend reinstated approach a focused common growth CapEx while our delivering organic disciplined repurchase capital returning to investments, share and are driving balanced of through ongoing shareholders programs.

repurchase represents through $XXX of the as board million. shares management highly has which million relates line repurchased liquidity. have we existing commenced shares of XXX,XXX X.X our program We activity. Board were this authorized our XX% team quarter. program, of million including shares, total outstanding share in We to share an and approximately continued repurchase use efficient million to over and approximately when of share our repurchase remain our a In it business $XX the both the $XX further program. expect have months and XXXX. available its first year, account, share QX remain into the this, future This The to during third bringing Taking to performance onwards the confident September in as for with the X increase repurchase opportunistic under to see active

total value plan repurchase continue summary, shareholders opportunities to Textainer. to return fleet Textainer and program. In strategy earlier, operational underlying financial I managing growth, Efficiently key now call our turn a capital more long-term our financial of board regarding the extremely demonstrating stable In towards Michael repurchases. generation in and program shareholder to financial This that shareholder book again capability. performance, this focus cash the with capital shareholders. approach results of reliable is for bit the a reinstatement already proud deliver to who third dividend value dividends and adding share to will in our investing of growth, and our program most share the selectively on allocation strong by I color and We pleased fundamental am the announce both am little I through supported over is addition, I the provide very business for dividend to highlighted long-term quarter. the the the quarterly strategic reinstate has common strong performance a will our as decided to our to attractive confidence

our Thank Olivier. now QX everyone. results. will you, focus on financial Hello, I

which of of income positive increased results, in execution by strong deliver initiatives the momentum our As adjusted quarter program. million, repurchase strategic pleased revenue consistent represented resulting and year-over-year. Olivier of over impressive diluted and a net number positive received to in for another supported our million if positive increase increased business to highlighted, another QX from another we per adjusted quarter. our an from our $X.XX are XXX% increase the the per reflects performance. an increase underlying performance non-recurring very share $XX and over of in prior and earnings fundamentals showing and impact the level over attractive common QX normalized QX’s share, share to $X year-over-year strong QX XXX% XX%

results QX We by Textainer QX. cash XX%, million, cash million, the adjusted in last included annualized ROE QX a income increase to and year-over-year CapEx $X QX arguably QX $XX years. are increase the year-over-year million, material XX%. of of increased be million, also to QX increased revenue, also generation level in will during adjusted of QX meaningful lease within an EBITDA, finance cash from of QX $XXX non-recurring this illustrative for million generation our receipts leases illustrating $XXX EBITDA very income X% XX%. number pleased another rental historic from X that If adjusted rental increased Normalized $XXX from all the a or metric. in lease its

driven and increases very growth positive rate were fixed top line tenure long Our by rental supported by favorable in leases, fleet yields results average organic attractive rates.

deliver recognize from we rental and as to to renewals the income another improvement extensions. lease expect investment and QX attracting lease benefits We container in to continue

to pleased and at utilization of an increase by resale driven consistent at attractive QX very the slight XX.X% are of compared and million, to-date. which to owned rate, fleet well We containers through mostly show prices. average quarter continue a QX our has $XX container with gain-on-sale remained

remain million container QX seen $XX direct expense $XX levels increased $X performance to G&A compensation expect fleet company incentive was due and improved is While expense remains levels to with resale from direct quarter, levels controlled container was expected it to costs strong resale QX low prices expected inventory. resulting continue year. to cost and expect and and to QX to an increase driving within high to we range investments. We and with primarily lower and million limited very this growth. due associated utilization and QX expense very and of technology to expense QX consistent constrained on focused driven by efficiencies at maintenance depreciation fourth million container by handling inventory, compared $X the limited very in storage, during off-hires. be cost depot remain activity benefit we increase utilization in are high million

issued of expense level funding driven expect $XXX average rate structure approximate of made optimize provisions remain as an approximately shutdowns capacity the interest financial hedging our fixed opportunities enhance costs off million were rate also issuance $X In in CapEx including to higher due approximately higher terms. at redemption in from future priced the million million we refinance growth, expense, debt We notes. by to substantial of additional wrote loan attractive at accordance lower notes, proceeds flexibility action QX. payment as was further investment approximately called We to $XX $XXX $XXX create with in fixed forward. August, reflected by notes ABS G&A million both was million largely loans took realized million and and borrowing unamortized in of this rate was term $XX the effective early QX. a QX million, and $X interest of offset In used termination going our costs. well The to primarily increase attractive container This QX. which fleet for our we capital and resulting of pricing ABS the

interest loan these the refinance notes from recoup little in X savings a ABS termination Forward over the payment higher-priced of will years.

of our rate forward proactive portfolio comprises during the and averaging quarter mitigate and of X.X%. our Our refinancing effective interest debt debt management to rate X.XX% debt portfolio continues QX to also the from fixed rate XX% a at drop risk. interest ending

B We also million in issued shares terms. perpetual $XXX in August preferred at Series attractive

important Our capital component structure, preferred our allocation attractively providing program. of enhancing flexibility capital to the priced share an be capital our program of and continues

program, repurchase share approximately $XX.XX average shares our an price of to repurchased QX. now during we Turning at XXX,XXX

share repurchase mentioned, Olivier increase remaining. our now during September, has $XX our $XX authorized an Board of which As to million million program,

capital we approximately opportunistically repurchased XX% with allocation as program of will already have plan. since move in shares the shares repurchase our of We XXXX September continue to and consistent our outstanding our forward we inception

We are reliable indeed very return of to consistent reinstatement and our to common our cash provide in announce the pleased shareholders. to a program dividend order

dividend taxpayers. dividend textainer.com per consult approved December distributions by treated of the Investor our XX, a U.S. currently as common a board to shareholders common share shareholders December advisors record XXXX. with their section of dividends But of cash declared consistent maybe and with XXXX Please tax dividends, to on common has our Our note webpage. payable the prior $X.XX our to of capital are as advised Relations on and return X, review

Board both Series shares holders XX, B also December our of cash and on of approved perpetual preferred record Our has payable as a for quarterly preferred Series X, and declared XXXX A December dividend XXXX. to

both In believe expense structure confident solid sheet, well-structured million. We QX through liquidity, metrics. remain and maintain position, efficiency. restricted and positioned Looking optimized and balance and ability our we well balance continue and now demonstrated at closing, reserves. cash healthy remains a inclusive sheet profitability of balance with liquidity facilities and healthy Textainer a a cash we cash bank further We liquidity ended to with to adequate in control $XXX our improve our our of sheet capital

repurchase time long-term In our for value and today. concludes remarks. open performance addition, your through all please share creation financial you questions. This Thank Operator, strong shareholder to committed dividend we the sustain prepared for programs. line our are and

comes The Please Brown Instructions] KBW. go from [Operator ahead. question first Michael from

Hey, Michael. are Olivier. you Hey, guys? How

Good. Hi, Mike.

Well, thank Hey, Mike. Good. you.

Great.

up how fourth ramp XXXX with quarter, that committed in in got delivery customers have up been mentioned us assume the as part leasing pickup for is, the you containers will and all start were million fourth a guidance in third of leasing to that event? containers ramp from $XXX quarter? terms think any is Is into fourth that And for really maybe is a then more first there of so, quarter in the you picked second give you that at So, that about quarter have of sequentially there what the the quarter? so revenue of if And benefit be wanted the potential that should think I to to how leasing ordered the it fair quarter. will revenue, that revenues full can to we in

Mike. Yes. Thank you,

And again on tell getting are can from this And think happy the we I that. very performance revenue. much us very right it’s really I strong result number as we you really, really quarter, have the here. of the think with our timing

the in lot well. seen And we container third bought on and to a quarter think and extremely containers there those quarter beginning season I a you actually performance of third of have third in the that’s the the a or prior quarter of prior the quarter. fast lot the in went second as peak good lease why

ordered. of capital As we deployed mentioned containers reduced have have the of we earlier somewhat amount number have the and that on, we we

the of with fourth that containers still to third going expect quarter those in get quarter. impact we are in market the it – cyclicality, to time the that’s full normal the we on-hire So, but

line definitely. So, improvement be still there in should top some most the

that Going opportunities forward, I but won’t a we continue repeat deploy see of probably to to think capital, see this we market. many

the that we we we incredible seen to have balance next quarter. also think market for third than are large certain probably fewer absolutely revenue to extent, containers moderate year, to into capital. going you market, but need and have that into because somewhat expensive, an growth predict we certainly an incredible second the and continue year But I sheet see what of deploy a containers, but forward. absolutely see amount we still some very seen continue into and next over slower growing that growing pace at And our a means our will

sense. Okay, great. will make That

wanted noticed I that XX your allocation and and I topic clearly the capital of prepared was I is Slide So, new there talk your shows portfolio about at to a remarks. there the return exhibit it runoff the portfolio. major out – looking point was that here. million there fleet illustrative, is cash And over life receipts out coming does but is again, slide that analysis points there it’s of of existing the of that the that total $XX capital

puts a your have cash flows. into and it that spotlight the clearly, you So on strength visibility

the so it you the how and quarters? And dividends going size it’s periods. to sounds probably CapEx would the what here buybacks balance are over any like case basis, given is prior going that you the maybe buybacks coming anyway to think to really be above in here for the quarters And

to look really get history have those of to ultimately buybacks we maybe we lot what love don’t frame So, would look but at, a like? could

meant Yes. let our really, it restate to me are our market bit some happy long-term resuming that this, – this And that happy objective. was may We think, dividend deploy some program. we had have we not, continued than expected coming Slide also us the is I the point and for strong is we we at stated really have beyond those given people are to fact doing probably a reflection that, No, a we extent environment I earlier that you to are that out extremely deploy always rightly we little are now have it but least outlook for flow. cash And the of the our illustrating is future actually. well and CapEx, that how confidence X solid XX if we think years, CapEx continue in

slowdown, opportunities and see to read these so we in continue to it’s a It’s an was buyback turn capital definitely as to to extremely under share what think to continue now. shareholder. we very have attractive obvious allocation sense going and investment I much capital but priority. we deploy that levers the attractive can we these of capital the is as long-term the And demonstrated we difficult as if of can leases or that to or yields, question We we to stand And the also best I difficult share. returning do, is kind concept not to market Now, the for then the two be – pay that turn is here. If to of see dividend that either we think Textainer. have

bought a started. more increased board little to shares. We buyback bit XX%, The program more have since our authorization if buyback the

market But plays the huge investment in just to opportunities very on there the on see see CapEx intend shareholders environment disciplined. to So demonstrates there a the right we the chart invest we are how think return, the I it returning as if would out evolving. we for Slide of opportunities profitably. And terms XX be we a to really to stay are depend out capital going in as opportunities the if well we potential how big is and seeing earlier continue we with that not while. to remarks, don’t stated very, market little And for of

think we at tell, important. that’s can as I attractive still are far opportunities there But moment. the as very very again

on Yes. follow-up same I one that maybe topic. just guess

course, kind but to long-term want pay being levering coming would is were investors, about to I there you you still quarters. question been we here running which over up what And strong CapEx CapEx is, And higher, reinstated. uncertainty invest that, where is enough support you just below it expecting, more about it a some still Just the buyback historical to levels market ahead do has your to like consider good ever that certainly opportunities be does still guess the is see needs back. to see the given great little to dividend? the sound will your ultimately a and are of to to levels, is able great do and the pay clearly, a elevated dividend quarter of see while activity of leverage bit where my But dividend

at wanted returns. would amount we definitely summary cash need capital IR to have of to there return we us within of think But increase I I our want leverage? to our our we our happy don’t imply it’s leverage, to I overall because increase necessarily is you high look little to was would a I one the deck, a more we our very Slide think, that are of improve cash I think the ability it if of to XX shareholder already decided think leverage. follow. to generate our a course to and say generate that on leverage is Would a that business think range, certain their really we higher if that, potential I have slide, predicated helps that we action on

the Mike, shareholders. returning be a could add of Yes, it’s long-term so very here. Olivier’s executing comments, to buybacks Michael a method to course we certainly If see just benefit And to indeed as is I capital clear, of there there. in highly on value attractive our

of are room we You correct our leverage. in have lot a

You alluding to are we to are a little the equity. fact debt Xx below bit that

do plenty the debt have very cash can as organic here borrowing in that’s in generate we CapEx above And strong we a of credit it within flows. the if power fact there is it use want are for deploy means. balance position. that we in underpins to And by lot but really for sitting we now. and opportunities, indeed cash of and good we well, we ability all but with cash So use buybacks could yes, that flow a facilities sheet flows value certainly We our organic could we organic

Okay, you. guys. leave understood. it Thank the I Thanks for color there. all will

Thanks Mike.

Burke The with Please next Liam question Riley. B. comes go ahead. from

Good you. afternoon, Michael. Good Thank Olivier. afternoon,

Liam. Hello,

customers well and situation the you see upset will are behaving and anything or in we rationally your all you operating different where their your are have are of at looking right that Do all spaces. them less have market the now acting have competitors players more markets, manufacturers, this then that your or you The rationally? you

I was diverge And me okay, see the we get to question we continuation if little will how resolve always be there very an this environment you done much this last. to that At good is, answer, be with have high. consumer very down In coming resolved a bit, two right little been really you ways. that long it’s increasing. about infrastructure easy in it that And long a would can going and this can demand this Very or demand And with opinion, forward. And point, a think if is consumer either bit, infrastructure guess, question. running investment needs that what takes found my to allow now. of It’s investment as a time. and only

is here So, we unlikely the industry. some much very to think of the stay I our of view because that And change the environment time. to is major player for various are in a there the that in that, behavior see

cargo that lines long ocean it’s those think unlikely a waiting Asia. still And tight to in are of prices be is in as congestion the There shipped difficult place. I freight shipping plenty are goods. remains come ship to rates extremely environment. Their very to as the down, in operate high. And

if where that So, very there major much not absolutely they shipping need prices their understood where their to are manufacturers demand to is their containers. in the lines are really no Likewise, only are And I have environment for an charging an container varies. pricing change is behavior. They three operating fully manufacturers. in think it expensive that going environment change is

since beginning maintaining this year. the a level at pricing of they interest for So, the have have that high now least vested in we witnessed

costs honest, somewhat up, really drop. margins But reduced are manufacturing has actually So, prices their can’t incentives healthy But which would their behavior. Component gone we the they let’s very still have have at moment. why be no see to change margins.

to far get signs can as and hours as that factory. they production order, can’t enough at they when prefer tell, working The we the first are reduce

So, extremely certainly year. And their that’s five as environment, seen more leasing haven’t gouged Durations the consolidation been been this changing have been that we yields you necessarily have leasing players. But are There prices pretty much know, of prices similar market. they attractive. terms on has major not completely company, a it’s customers on been have a in bit positive sign the been certainly that and company unreasonable. have haven’t concerns a behavior. And

that So, is I no major XX%. would here And player their change everybody enjoying behavior. say that, levels extremely that the think risk there the of is utilization most low would with rate likewise, players I suddenly also inventory that above

it potentially a would would a few until see quarters behavior change here. take So, in quite we

on that Great. base? your prices gain and high pretty resale that’s know it presuming demand just for remained But strong, you broader has the customer because is pricing just containers am taking used still up. sale And are same the I is or are seeing container higher, new diverse. it’s I value pretty

Yes. the the different high customer secondary elements. It’s by driven price on base, a two but are market

on to environment, their existing of supply correct guys been the the in price have their new are also current You containers. extremely and haven’t container. any or containers point holding to But out the they simply, leave has turned been restricted, containers shipping in because

are with for old an a lot would to and And recent expensive, So are to been to container that, also holding estimate available sale, the containers, has dramatically pushed with means customers potentially ourselves, really And quantity to very so that’s when that have for utilizing difficult either whatever and them. for redelivering faced many and the year means a because older for we the be they example, containers. how containers are really on a of for obviously, fully normally going lessors, have prices much comes that many hold to we containers the on reduced. they market it’s sell that are of roof shipping that other will to part in us going to quarters. to incentive next plays for a moreover, try estimate building what to around it lines more And they hardest directly secondary have our on And the those lot has new trying and budget is replacing which that’s how choice it container, available. secondhand

Great. Thank you, Olivier.

from Mintzmeyer J ahead. Value The Edge. comes Investor’s question from Please go next

on afternoon, good Olivier. quarter. a congrats Hey, fantastic Michael, And

Yes. Welcome call. Hi, the to J.

I company well. to already have to call the questions. following great few great quarters, Michael Yes. a had now. and But allocation dividend. resumption some your been there of this, on some I our for the see inputs It’s have as be capital

wait first they a on a current And a main going want duration to for in to you XX economics trying economics Can those second. showed durations and right question now your are But lease XX lease ago, QX, about the So, seeing duration we the to will and there, the QX. of is signing those durations tenor couple CapEx And bit are XX as are they you of the for lease showed a the to of and ask competitor have we amount you sort on years sort report weeks far the I leases? QX what what seeing? opposed of is for on little years talk are you saw ones years. that smaller

misleading, extremely the certain terms. historical lease point as third in that the mean operate We are and at the our a maturities I lease the also container XX situation, are I yields that differently. a think said What much quarter. some above very lease on are got maybe we duration very have customers deals much have that that little for certain that very, is little long, But which comparing is the XX are it remaining customers I depends is What attractive. remained whatever time. above got, then what Triton is because years. that again, very are long bit durations a in in years seeing a booking close remain bit we They pretty the all to consistent deals tend

leases We below seen years. haven’t coming XX

to beginning the slows I a have see even think bit for the we year. that years, venture in with and going probably dare that to we year, we of X see seen And is line down, market the maturities if I next fourth are extremely which to long quarter far. the we to shortening leases seen would little what haven’t so certainly continue into since

particularly was years of XX life there. basically But course, because container Yes. to The the interesting, box that’s years are entire economics certainly of that the XX fantastic.

‘XX. a kind is like legacy your you roles little you X there. a expired. have there significant of of Can bit more Chinese the that that understand a would talk expect period on in should because year the feasible? be is Is of timing little expecting you of noticed also which QX of we still are that we the amount containers, those would timing to profitable, grace extremely about are and have bit the of be profitable? we sales, But and some at You also after I New a rolls I sales your Is tonnage. expect look still talked sale presentation, Year, QX, to

time potentially is very If That’s would I back where can New going start there after a we back, trickling or containers coming say good it’s point, Yes. be a Chinese J. expect to Year. to

in sometimes they if I are Lunar they pretty think until order that see Year, definitely right they of New is demand remain And continue them going that mountains will even cargo. don’t to they because stretch least extremely now returning container, in thereafter. at if condition, to know to not shipping strong, want start poor the lines

see we So, starting to surprised that where will because all The few those rule forward, will than start the start resale will or earlier a read-off out containers the there the could obviously, price their those represent forward of May correct obviously, that back are line coming try mentioned so decide to big And after But running if containers back, before say see lines of this can’t completely to fleet. point, to our for back And be like damaged New thinking sort at market high capacity, own for period going into because further. so more new to the coming question fleet. elevated. the everything are now come delay, optimize continue potential normally the But I a we prices bit season to have February where they very we containers redeliver redelivery to going container. shipping first very we we market. peak all judgment Year. elevated coming we to are Chinese starts coming and going continued their at sales, they when of much are high to okay, some between And not incredibly gain XX compared prices And to great we reasons remains next going is very of on, running is if after a will months I containers and looking they volumes, but lines here back. that are shipping more us see typically and see that improve seeing some take now the that a meaning And we materializes. point, strong they that that containers is remain that even back shipping on today, little full may in them

like Yes. to are follow guess Thanks Brown the correct Hopefully, some and well. your as that out. I interesting how that for questions capital on had pivot to – Michael to – you the would see fantastic pans there. allocation.

beat horse much. is and on to it’s take have care the want think million, XX really there it don’t if that. I what I the I So, is you $XXX shareholders QX about shows actually annualized most go dead too you that forward Slide about. believe chart But

had because I much light would Let’s we billion have any we of I talk for are imagining you had CapEx, QX, million a be through done at sort shorter to QX CapEx, now. the curious QX QX you QX of seeing about are already on third how believe developing, you most you are of $X.X your of can expect CapEx, in how first all range? way by you am how any developing, of give year-to-date, seeing XXXX bookings about Can $XXX

I we time million, could that containers. more. the of always We have the committed, is bit there think as between obviously, today. of delivery $XXX little Well, we a But kind and we already disclosed, those lead a order deploy is where stand

to marginally for the or expect be I from quarter. committed fourth different substantially number that don’t So, the $XXX million already

flow that least danced dividend And now returns. little bit I Yes, want slowing I lot certainly cash just on we a miniscule, available we it your means it down, right? for mean don’t see But at a sense. is are free definitely cash shareholder the have, defeat be you great, percentage the around And of But dividend seizing there the a question you makes earlier. flow think we the back to now. I where is the free is from right But it resumption situation which it’s more realized that has. a I is it’s Triton are the first realized right, one, jaws it’s than bringing tiny peer is victory. I of that tiny. smaller growth,

I any sort of It’s of Is about vision free can going quarter what quarter payout kind to talk of the on see your bit are the dividend? happens something calculation, door? or am you happens that of payout see like doing correct? term Do of ratio a a and that. just So, in We because expect, fund X% potential what little longer you if a could sort $X.XX have ratio? that cash next quarter foot you after what

Yes. No, J. you are right

whatever I for whatever program that’s may to it’s resume business deciding had the factor hit was forward, the to most that that wanted to obviously ability in and the Board think dividend the fundamental support that I the sure or management important the here and Board the is element. we make But first cycle dividend through our here going us a so decision. think element

in rule earlier because The we market been is cash we the think keep total to very us that that of to we see that final I And dividend important. as elements the And well. be our ever to that you to a really return, year. But be continue to place and bit we in the is for that that address buyback sort level unpredictable, can’t see and back am this materialize. strong so outlook buybacks that logical exclude think I exceptionally And little have buying line business, to are was XXXX high. of year down the this continue the it on share sustainability potential an we that at will a compared total come the the they CapEx, see with able here if that going seeing also continue shareholder that prudent we very like very it’s that really second can’t flows and of think again. then well very out think element that look to could the strong given we that is and combined next CapEx capacity a form to are probably XXXX, see for year that programs like, we the here to only has to

certainly sense very dividend. happy makes That and to Yes. see the

total your at looking is to cash get going total enormous, and flow flow, Just cash your it’s better. only

But would like new we $X reinvest know year, ‘XX, billion you growth, is which CapEx be So, half flow cash side, of billion, Slide did your your and able million, million the you on $XXX looks $X are on excited be anything, I XX, it do high same in about you if still as into think is that. to it I about would It of only based on slide like. the this have only capacity dividend phenomenal that the if and And $XXX XX. are you if seems leftover. that’s

do is So, to potential just or there seems more. lot it like of a repurchase something

are a then we February. that I So, maybe basically Is guess we like fair? should quarter-to-quarter talk maybe in, expecting early update,

Yes.

actually. should every quarter to I think continue we about talk it

work Michael, good Alright, phenomenal. great and a have the up one. Olivier Keep

J. you, Thank

Thanks, J.

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

you you. thank certainly you look forward next we quarter markets. exciting Thank everyone to this attending host Yes. insights call. for with And And this into further

conference call. This today’s concludes

day. you Thank lines. your a disconnect may pleasant You participating and for have