Trinity Industries, Inc. (NYSE:TRN) today announced earnings results for
the first quarter ended March 31, 2016, including the following
significant highlights:
-
Quarterly revenues and net income of $1.2 billion and $97.2 million,
respectively
-
Quarterly earnings per common diluted share of $0.64, including $0.03
per common diluted share related to sales of leased railcars
-
Company repurchases approximately 2.1 million shares of common stock
at a cost of $34.7 million under its share repurchase authorization
during the quarter
-
Company now anticipates full year 2016 earnings of between $2.00 and
$2.30 per common diluted share
Consolidated Results
Trinity Industries, Inc. reported net income attributable to Trinity
stockholders of $97.2 million, or $0.64 per common diluted share, for
the first quarter ended March 31, 2016. Net income for the same quarter
of 2015 was $180.2 million, or $1.13 per common diluted share. Revenues
for the first quarter of 2016 totaled $1.19 billion compared to revenues
of $1.63 billion for the same quarter of 2015.
“Trinity's first quarter financial results reflect the deterioration in
demand for a number of our products,” said Timothy R. Wallace, Trinity’s
Chairman, CEO and President. “Even though our financial results declined
quarter over quarter and year over year, I am pleased with our Company's
ability to make orderly transitions when market conditions shift. Our
people did a good job transitioning from high production levels in the
fourth quarter to much lower levels in the first quarter.”
Mr. Wallace added, “We are continuing to reposition and streamline our
operations based on current demand levels. Trinity is a much stronger
company today than in previous market downturns.”
Business Group Results
In the first quarter of 2016, the Rail Group reported revenues of $846.9
million compared to revenues of $1,144.5 million in the first quarter of
2015. Operating profit for the Rail Group was $157.2 million in the
first quarter of 2016 compared to operating profit of $212.7 million in
the first quarter of 2015. The decrease in revenues and profit was
primarily due to lower deliveries and changes in product mix. The Rail
Group shipped 7,145 railcars and received orders for 1,620 railcars
during the first quarter. The Rail Group had a backlog of $4.72 billion
as of March 31, 2016, representing 43,360 railcars, compared to a
backlog of $5.40 billion as of December 31, 2015, representing 48,885
railcars. At the end of the first quarter, the backlog of railcar orders
extends into 2020.
The Railcar Leasing and Management Services Group ("Leasing Group")
reported leasing and management revenues of $170.5 million in the first
quarter of 2016 compared to $166.1 million in the first quarter of 2015
primarily due to net fleet additions. In addition, the Group recognized
revenues of $8.0 million during the first quarter from sales of railcars
from the lease fleet owned for one year or less compared to $78.7
million in the first quarter of 2015. Proceeds from the sale of railcars
from the lease fleet owned for more than one year at the time of sale
are not included in revenue and totaled $6.7 million in the first
quarter of 2016 and $78.5 million in the first quarter of 2015.
Operating profit for this Group was $74.2 million in the first quarter
of 2016 compared to operating profit of $122.8 million in the first
quarter of 2015. The decrease in operating profit was primarily due to a
decrease in the volume of sales of railcars from the lease fleet and
higher maintenance expense. Supplemental information for the Leasing
Group is provided in the accompanying tables.
The Inland Barge Group reported revenues of $110.8 million for the first
quarter of 2016 compared to revenues of $153.1 million in the first
quarter of 2015. Operating profit for this Group was $12.6 million in
the first quarter of 2016 compared to $27.5 million in the first quarter
of 2015. The decrease in revenues and operating profit compared to the
same quarter last year was primarily due to lower tank barge deliveries.
As of March 31, 2016, the Inland Barge Group had a backlog of $318.7
million compared to a backlog of $416.0 million as of December 31, 2015.
The Energy Equipment Group reported revenues of $273.4 million in the
first quarter of 2016 compared to revenues of $300.1 million in the same
quarter of 2015. Operating profit for the first quarter of 2016
increased slightly to $37.4 million compared to $37.2 million in the
same quarter last year. The decrease in revenues compared to the same
quarter last year was due to lower delivery volumes in the utility
structures business and other product lines partially offset by higher
delivery volumes in the wind towers business. The backlog for wind
towers as of March 31, 2016 was $263.4 million compared to a backlog of
$371.3 million as of December 31, 2015.
Revenues in the Construction Products Group were $124.9 million in the
first quarter of 2016 compared to revenues of $112.8 million in the
first quarter of 2015. The Group recorded an operating profit of $15.9
million in the first quarter of 2016 compared to an operating profit of
$8.3 million in the first quarter of 2015. Revenues and operating profit
increased compared to the same quarter last year primarily as a result
of higher delivery volumes in both the Aggregates and Highway Products
businesses.
Cash and Liquidity
At March 31, 2016, the Company had cash, cash equivalents, and
short-term marketable securities of $835.6 million. When combined with
capacity under committed credit facilities, the Company had
approximately $2.1 billion of available liquidity at the end of the
first quarter.
Share Repurchase
The Company repurchased 2,070,600 shares of common stock at a cost of
$34.7 million under its share repurchase authorization during the
quarter, leaving $215.4 million remaining under its current
authorization through December 31, 2017.
Earnings Guidance for 2016
For the full year of 2016, the Company anticipates earnings per common
diluted share of between $2.00 and $2.30 compared to its previous
guidance of between $2.00 and $2.40 per share. The Company’s 2016
earnings guidance is based on the assumption that current market
conditions will continue throughout the year. The reduction in the upper
end of the earnings guidance range is due to a lower expected level of
sales of leased railcars than previously provided.
The Company's current earnings guidance incorporates the sales of
between $300 million and $400 million of leased railcars during 2016
compared to its previous guidance of approximately $500 million. In the
current market environment, the Company is closely evaluating the
current returns it may earn from selling portfolios of leased railcars
compared to retaining the leased railcars in its wholly-owned lease
fleet. During the first quarter, proceeds from the sales of leased
railcars totaled $22.8 million and resulted in $0.03 per common diluted
share of earnings.
Actual results in 2016 may differ from present expectations and could be
impacted by a number of factors including, among others, fluctuations in
prices of commodities that our customers produce and transport; expenses
related to current and potential litigation; the operating leverage and
efficiencies that can be achieved by the Company's manufacturing
businesses; the costs associated with aligning manufacturing production
capacity with demand; the level of sales and profitability of
manufacturing railcars; the level of profitability associated with the
sales of leased railcars; the dilutive impact of the convertible notes
related to changes in the Company's stock price; and the impact of
weather conditions on our operations and delivery schedules.
Conference Call
Trinity will hold a conference call at 11:00 a.m. Eastern on April 22,
2016 to discuss its first quarter results. To listen to the call, please
visit the Investor Relations section of the Trinity Industries website, www.trin.net
and select the Conference Calls menu link. An audio replay may be
accessed through the Company’s website or by dialing (402) 220-7220
until 11:59 p.m. Eastern on April 29, 2016.
Trinity Industries, Inc., headquartered in Dallas, Texas, is a
diversified industrial company that owns market-leading businesses
providing products and services to the energy, transportation, chemical,
and construction sectors. Trinity reports its financial results in five
principal business segments: the Rail Group, the Railcar Leasing and
Management Services Group, the Inland Barge Group, the Construction
Products Group, and the Energy Equipment Group. For more information,
visit: www.trin.net.
Some statements in this release, which are not historical facts, are
“forward-looking statements” as defined by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include
statements about Trinity's estimates, expectations, beliefs, intentions
or strategies for the future, and the assumptions underlying these
forward-looking statements. Trinity uses the words “anticipates,”
“assumes,” “believes,” “estimates,” “expects,” “intends,” “forecasts,”
“may,” “will,” “should,” “guidance,” “outlook,” and similar expressions
to identify these forward-looking statements. Forward-looking statements
involve risks and uncertainties that could cause actual results to
differ materially from historical experience or our present
expectations. For a discussion of such risks and uncertainties, which
could cause actual results to differ from those contained in the
forward-looking statements, see “Risk Factors” and “Forward-Looking
Statements” in the Company's Annual Report on Form 10-K for the most
recent fiscal year.
|
|
|
|
|
Trinity Industries, Inc.
|
Condensed Consolidated Income Statements
|
(in millions, except per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2016
|
|
|
2015
|
Revenues
|
|
|
|
$
|
1,187.9
|
|
|
|
$
|
1,626.7
|
|
Operating costs:
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
|
|
889.9
|
|
|
|
|
1,211.1
|
|
Selling, engineering, and administrative expenses
|
|
|
|
|
96.5
|
|
|
|
|
98.3
|
|
Gains on dispositions of property:
|
|
|
|
|
|
|
|
Net gains on lease fleet sales
|
|
|
|
|
(2.1
|
)
|
|
|
|
(14.9
|
)
|
Other
|
|
|
|
|
0.2
|
|
|
|
|
(0.9
|
)
|
|
|
|
|
|
984.5
|
|
|
|
|
1,293.6
|
|
Operating profit
|
|
|
|
|
203.4
|
|
|
|
|
333.1
|
|
Interest expense, net
|
|
|
|
|
44.6
|
|
|
|
|
51.0
|
|
Other, net
|
|
|
|
|
(0.7
|
)
|
|
|
|
(2.3
|
)
|
Income before income taxes
|
|
|
|
|
159.5
|
|
|
|
|
284.4
|
|
Provision for income taxes
|
|
|
|
|
57.4
|
|
|
|
|
95.4
|
|
Net income
|
|
|
|
|
102.1
|
|
|
|
|
189.0
|
|
Net income attributable to noncontrolling interest
|
|
|
|
|
4.9
|
|
|
|
|
8.8
|
|
Net income attributable to Trinity Industries, Inc.
|
|
|
|
$
|
97.2
|
|
|
|
$
|
180.2
|
|
|
|
|
|
|
|
|
|
Net income attributable to Trinity Industries, Inc. per common share:
|
|
|
|
Basic
|
|
|
|
$
|
0.64
|
|
|
|
$
|
1.15
|
|
Diluted
|
|
|
|
$
|
0.64
|
|
|
|
$
|
1.13
|
|
Weighted average number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
148.3
|
|
|
|
|
151.2
|
|
Diluted
|
|
|
|
|
148.3
|
|
|
|
|
154.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trinity is required to utilize the two-class method of accounting when
calculating earnings per share as a result of unvested restricted shares
that have non-forfeitable rights to dividends and are, therefore,
considered to be a participating security. The unvested restricted
shares are excluded from the weighted average number of shares
outstanding for the purposes of determining earnings per share. The
two-class method results in a lower earnings per share than is
calculated from the face of the income statement. See Earnings Per Share
Calculation table below.
|
|
|
|
|
Trinity Industries, Inc.
|
Condensed Segment Data
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
Revenues:
|
|
|
|
2016
|
|
|
2015
|
Rail Group
|
|
|
|
$
|
846.9
|
|
|
|
$
|
1,144.5
|
|
Construction Products Group
|
|
|
|
|
124.9
|
|
|
|
|
112.8
|
|
Inland Barge Group
|
|
|
|
|
110.8
|
|
|
|
|
153.1
|
|
Energy Equipment Group
|
|
|
|
|
273.4
|
|
|
|
|
300.1
|
|
Railcar Leasing and Management Services Group
|
|
|
|
|
178.5
|
|
|
|
|
244.8
|
|
All Other
|
|
|
|
|
21.9
|
|
|
|
|
28.1
|
|
Segment Totals before Eliminations
|
|
|
|
|
1,556.4
|
|
|
|
|
1,983.4
|
|
Eliminations - lease subsidiary
|
|
|
|
|
(283.3
|
)
|
|
|
|
(259.0
|
)
|
Eliminations - other
|
|
|
|
|
(85.2
|
)
|
|
|
|
(97.7
|
)
|
Consolidated Total
|
|
|
|
$
|
1,187.9
|
|
|
|
$
|
1,626.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
Operating profit (loss):
|
|
|
|
2016
|
|
|
2015
|
Rail Group
|
|
|
|
$
|
157.2
|
|
|
|
$
|
212.7
|
|
Construction Products Group
|
|
|
|
|
15.9
|
|
|
|
|
8.3
|
|
Inland Barge Group
|
|
|
|
|
12.6
|
|
|
|
|
27.5
|
|
Energy Equipment Group
|
|
|
|
|
37.4
|
|
|
|
|
37.2
|
|
Railcar Leasing and Management Services Group
|
|
|
|
|
74.2
|
|
|
|
|
122.8
|
|
All Other
|
|
|
|
|
(5.1
|
)
|
|
|
|
(1.5
|
)
|
Segment Totals before Eliminations and Corporate Expenses
|
|
|
|
|
292.2
|
|
|
|
|
407.0
|
|
Corporate
|
|
|
|
|
(24.7
|
)
|
|
|
|
(26.7
|
)
|
Eliminations - lease subsidiary
|
|
|
|
|
(65.5
|
)
|
|
|
|
(48.3
|
)
|
Eliminations - other
|
|
|
|
|
1.4
|
|
|
|
|
1.1
|
|
Consolidated Total
|
|
|
|
$
|
203.4
|
|
|
|
$
|
333.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trinity Industries, Inc.
|
Leasing Group
|
Condensed Results of Operations
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
($ in millions)
|
Revenues:
|
|
|
|
|
|
|
|
Leasing and management
|
|
|
|
$
|
170.5
|
|
|
|
$
|
166.1
|
|
Sales of railcars owned one year or less at the time of sale
|
|
|
|
|
8.0
|
|
|
|
|
78.7
|
|
Total revenues
|
|
|
|
$
|
178.5
|
|
|
|
$
|
244.8
|
|
Operating profit:
|
|
|
|
|
|
|
|
Leasing and management
|
|
|
|
$
|
69.8
|
|
|
|
$
|
82.3
|
|
Railcar sales:
|
|
|
|
|
|
|
|
Railcars owned one year or less at the time of sale
|
|
|
|
|
2.3
|
|
|
|
|
25.6
|
|
Railcars owned more than one year at the time of sale
|
|
|
|
|
2.1
|
|
|
|
|
14.9
|
|
Total operating profit
|
|
|
|
$
|
74.2
|
|
|
|
$
|
122.8
|
|
Operating profit margin:
|
|
|
|
|
|
|
|
Leasing and management
|
|
|
|
|
40.9
|
%
|
|
|
|
49.5
|
%
|
Railcar sales
|
|
|
|
*
|
|
|
*
|
Total operating profit margin
|
|
|
|
|
41.6
|
%
|
|
|
|
50.2
|
%
|
Selected expense information(1):
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
$
|
37.4
|
|
|
|
$
|
34.1
|
|
Maintenance
|
|
|
|
$
|
31.6
|
|
|
|
$
|
19.9
|
|
Rent
|
|
|
|
$
|
9.5
|
|
|
|
$
|
11.8
|
|
Interest
|
|
|
|
$
|
31.8
|
|
|
|
$
|
37.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
December 31, 2015
|
Leasing portfolio information:
|
|
|
|
|
|
|
|
Portfolio size (number of railcars)
|
|
|
|
|
79,055
|
|
|
|
|
76,765
|
|
Portfolio utilization
|
|
|
|
|
97.2
|
%
|
|
|
|
97.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
(in millions)
|
Proceeds from sales of leased railcars:
|
|
|
|
|
|
|
|
Leasing Group:
|
|
|
|
|
|
|
|
Railcars owned one year or less at the time of sale
|
|
|
|
$
|
8.0
|
|
|
|
$
|
78.7
|
|
Railcars owned more than one year at the time of sale
|
|
|
|
|
6.7
|
|
|
|
|
78.5
|
|
Rail Group
|
|
|
|
|
8.1
|
|
|
|
|
15.2
|
|
|
|
|
|
$
|
22.8
|
|
|
|
$
|
172.4
|
|
|
|
|
|
|
|
|
|
* Not meaningful
(1) Depreciation, maintenance, and rent expense are
components of operating profit. Amortization of deferred profit on
railcars sold from the Rail Group to the Leasing Group is included in
the operating profit of the Leasing Group resulting in the recognition
of depreciation expense based on the Company's original manufacturing
cost of the railcars. Interest expense is not a component of operating
profit and includes the effect of hedges.
|
|
|
|
|
|
|
|
Trinity Industries, Inc.
|
Condensed Consolidated Balance Sheets
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
December 31, 2015
|
Cash and cash equivalents
|
|
|
|
$
|
635.7
|
|
|
$
|
786.0
|
Short-term marketable securities
|
|
|
|
|
199.9
|
|
|
|
84.9
|
Receivables, net of allowance
|
|
|
|
|
375.0
|
|
|
|
369.9
|
Income tax receivable
|
|
|
|
|
21.9
|
|
|
|
94.9
|
Inventories
|
|
|
|
|
936.1
|
|
|
|
943.1
|
Restricted cash
|
|
|
|
|
185.6
|
|
|
|
195.8
|
Net property, plant, and equipment
|
|
|
|
|
5,523.5
|
|
|
|
5,348.0
|
Goodwill
|
|
|
|
|
754.7
|
|
|
|
753.8
|
Other assets
|
|
|
|
|
277.3
|
|
|
|
309.5
|
|
|
|
|
$
|
8,909.7
|
|
|
$
|
8,885.9
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
223.8
|
|
|
$
|
216.8
|
Accrued liabilities
|
|
|
|
|
452.3
|
|
|
|
529.6
|
Debt, net of unamortized discount of $40.0 and $44.2
|
|
|
|
|
3,171.0
|
|
|
|
3,195.4
|
Deferred income
|
|
|
|
|
25.8
|
|
|
|
27.1
|
Deferred income taxes
|
|
|
|
|
813.5
|
|
|
|
752.2
|
Other liabilities
|
|
|
|
|
117.3
|
|
|
|
116.1
|
Stockholders' equity
|
|
|
|
|
4,106.0
|
|
|
|
4,048.7
|
|
|
|
|
$
|
8,909.7
|
|
|
$
|
8,885.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trinity Industries, Inc.
|
Additional Balance Sheet Information
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
December 31, 2015
|
Property, Plant, and Equipment
|
|
|
|
|
|
|
|
Corporate/Manufacturing:
|
|
|
|
|
|
|
|
Property, plant, and equipment
|
|
|
|
$
|
1,870.8
|
|
|
|
$
|
1,861.5
|
|
Accumulated depreciation
|
|
|
|
|
(920.3
|
)
|
|
|
|
(905.4
|
)
|
|
|
|
|
|
950.5
|
|
|
|
|
956.1
|
|
Leasing:
|
|
|
|
|
|
|
|
Wholly-owned subsidiaries:
|
|
|
|
|
|
|
|
Machinery and other
|
|
|
|
|
10.7
|
|
|
|
|
10.7
|
|
Equipment on lease
|
|
|
|
|
4,042.7
|
|
|
|
|
3,763.5
|
|
Accumulated depreciation
|
|
|
|
|
(673.3
|
)
|
|
|
|
(647.9
|
)
|
|
|
|
|
|
3,380.1
|
|
|
|
|
3,126.3
|
|
Partially-owned subsidiaries:
|
|
|
|
|
|
|
|
Equipment on lease
|
|
|
|
|
2,309.1
|
|
|
|
|
2,307.7
|
|
Accumulated depreciation
|
|
|
|
|
(385.4
|
)
|
|
|
|
(369.1
|
)
|
|
|
|
|
|
1,923.7
|
|
|
|
|
1,938.6
|
|
|
|
|
|
|
|
|
|
Net deferred profit on railcars sold to the Leasing Group
|
|
|
|
|
(730.8
|
)
|
|
|
|
(673.0
|
)
|
|
|
|
|
$
|
5,523.5
|
|
|
|
$
|
5,348.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trinity Industries, Inc.
|
Additional Balance Sheet Information
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
December 31, 2015
|
Debt
|
|
|
|
|
|
|
|
Corporate - Recourse:
|
|
|
|
|
|
|
|
Revolving credit facility
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
Senior notes due 2024, net of unamortized discount of $0.4 and $0.4
|
|
|
|
|
399.6
|
|
|
|
|
399.6
|
|
Convertible subordinated notes, net of unamortized discount of $39.6
and $43.8
|
|
|
|
|
409.8
|
|
|
|
|
405.6
|
|
Other
|
|
|
|
|
0.5
|
|
|
|
|
0.5
|
|
|
|
|
|
|
809.9
|
|
|
|
|
805.7
|
|
Less: unamortized debt issuance costs
|
|
|
|
|
(4.4
|
)
|
|
|
|
(4.7
|
)
|
|
|
|
|
|
805.5
|
|
|
|
|
801.0
|
|
Leasing:
|
|
|
|
|
|
|
|
Wholly-owned subsidiaries:
|
|
|
|
|
|
|
|
Recourse:
|
|
|
|
|
|
|
|
Capital lease obligations, net of unamortized debt issuance costs of
$0.1 and $0.1
|
|
|
|
|
34.9
|
|
|
|
|
35.7
|
|
|
|
|
|
|
34.9
|
|
|
|
|
35.7
|
|
Non-recourse:
|
|
|
|
|
|
|
|
Secured railcar equipment notes
|
|
|
|
|
672.3
|
|
|
|
|
679.5
|
|
Warehouse facility
|
|
|
|
|
259.3
|
|
|
|
|
264.3
|
|
|
|
|
|
|
931.6
|
|
|
|
|
943.8
|
|
Less: unamortized debt issuance costs
|
|
|
|
|
(14.1
|
)
|
|
|
|
(15.1
|
)
|
|
|
|
|
|
917.5
|
|
|
|
|
928.7
|
|
Partially-owned subsidiaries - Non-recourse:
|
|
|
|
|
|
|
|
Secured railcar equipment notes
|
|
|
|
|
1,429.5
|
|
|
|
|
1,446.9
|
|
Less: unamortized debt issuance costs
|
|
|
|
|
(16.4
|
)
|
|
|
|
(16.9
|
)
|
|
|
|
|
|
1,413.1
|
|
|
|
|
1,430.0
|
|
|
|
|
|
$
|
3,171.0
|
|
|
|
$
|
3,195.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trinity Industries, Inc.
|
Additional Balance Sheet Information
|
($ in millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016
|
|
|
December 31, 2015
|
Leasing Debt Summary
|
|
|
|
|
|
|
|
Total Recourse Debt
|
|
|
|
$
|
34.9
|
|
|
|
$
|
35.7
|
|
Total Non-Recourse Debt
|
|
|
|
|
2,330.6
|
|
|
|
|
2,358.7
|
|
|
|
|
|
$
|
2,365.5
|
|
|
|
$
|
2,394.4
|
|
Total Leasing Debt
|
|
|
|
|
|
|
|
Wholly-owned subsidiaries
|
|
|
|
$
|
952.4
|
|
|
|
$
|
964.4
|
|
Partially-owned subsidiaries
|
|
|
|
|
1,413.1
|
|
|
|
|
1,430.0
|
|
|
|
|
|
$
|
2,365.5
|
|
|
|
$
|
2,394.4
|
|
Equipment on Lease(1)
|
|
|
|
|
|
|
|
Wholly-owned subsidiaries
|
|
|
|
$
|
3,380.1
|
|
|
|
$
|
3,126.3
|
|
Partially-owned subsidiaries
|
|
|
|
|
1,923.7
|
|
|
|
|
1,938.6
|
|
|
|
|
|
$
|
5,303.8
|
|
|
|
$
|
5,064.9
|
|
Total Leasing Debt as a % of Equipment on Lease
|
|
|
|
|
|
|
|
Wholly-owned subsidiaries
|
|
|
|
|
28.2
|
%
|
|
|
|
30.8
|
%
|
Partially-owned subsidiaries
|
|
|
|
|
73.5
|
%
|
|
|
|
73.8
|
%
|
Combined
|
|
|
|
|
44.6
|
%
|
|
|
|
47.3
|
%
|
|
|
|
|
|
|
|
|
(1) Excludes net deferred profit on railcars sold to the Leasing Group.
|
|
|
|
|
Trinity Industries, Inc.
|
Condensed Consolidated Cash Flow Statements
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2016
|
|
|
2015
|
Operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
102.1
|
|
|
|
$
|
189.0
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
69.4
|
|
|
|
|
64.0
|
|
Net gains on railcar lease fleet sales owned more than one year at
the time of sale
|
|
|
|
|
(2.1
|
)
|
|
|
|
(14.9
|
)
|
Other
|
|
|
|
|
76.8
|
|
|
|
|
20.7
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
(Increase) decrease in receivables
|
|
|
|
|
67.9
|
|
|
|
|
(76.6
|
)
|
(Increase) decrease in inventories
|
|
|
|
|
7.0
|
|
|
|
|
31.7
|
|
Increase (decrease) in accounts payable and accrued liabilities
|
|
|
|
|
(66.3
|
)
|
|
|
|
(99.3
|
)
|
Other
|
|
|
|
|
31.3
|
|
|
|
|
(5.2
|
)
|
Net cash provided by operating activities
|
|
|
|
|
286.1
|
|
|
|
|
109.4
|
|
Investing activities:
|
|
|
|
|
|
|
|
Proceeds from railcar lease fleet sales owned more than one year at
the time of sale
|
|
|
|
|
6.7
|
|
|
|
|
78.5
|
|
Proceeds from dispositions of property
|
|
|
|
|
1.1
|
|
|
|
|
1.6
|
|
Capital expenditures - leasing, net of sold lease fleet railcars
owned one year or less with a net cost of $5.7 and $53.1
|
|
|
|
|
(222.8
|
)
|
|
|
|
(283.4
|
)
|
Capital expenditures - manufacturing and other
|
|
|
|
|
(26.3
|
)
|
|
|
|
(53.5
|
)
|
(Increase) decrease in short-term marketable securities
|
|
|
|
|
(115.0
|
)
|
|
|
|
(25.0
|
)
|
Acquisitions
|
|
|
|
|
—
|
|
|
|
|
(45.5
|
)
|
Other
|
|
|
|
|
0.2
|
|
|
|
|
4.2
|
|
Net cash required by investing activities
|
|
|
|
|
(356.1
|
)
|
|
|
|
(323.1
|
)
|
Financing activities:
|
|
|
|
|
|
|
|
Payments to retire debt
|
|
|
|
|
(30.4
|
)
|
|
|
|
(70.9
|
)
|
Shares repurchased
|
|
|
|
|
(34.7
|
)
|
|
|
|
(18.0
|
)
|
Dividends paid to common shareholders
|
|
|
|
|
(16.8
|
)
|
|
|
|
(15.6
|
)
|
Purchase of shares to satisfy employee tax on vested stock
|
|
|
|
|
(0.1
|
)
|
|
|
|
(0.4
|
)
|
Distributions to noncontrolling interest
|
|
|
|
|
(6.8
|
)
|
|
|
|
(11.3
|
)
|
Decrease in restricted cash
|
|
|
|
|
10.2
|
|
|
|
|
33.0
|
|
Other
|
|
|
|
|
(1.7
|
)
|
|
|
|
(0.3
|
)
|
Net cash (required) provided by financing activities
|
|
|
|
|
(80.3
|
)
|
|
|
|
(83.5
|
)
|
Net (decrease) increase in cash and cash equivalents
|
|
|
|
|
(150.3
|
)
|
|
|
|
(297.2
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
786.0
|
|
|
|
|
887.9
|
|
Cash and cash equivalents at end of period
|
|
|
|
$
|
635.7
|
|
|
|
$
|
590.7
|
|
|
|
|
|
|
|
|
|
Trinity Industries, Inc.
Earnings per Share Calculation
(in
millions, except per share amounts)
(unaudited)
Basic net income attributable to Trinity Industries, Inc. per common
share is computed by dividing net income attributable to Trinity
remaining after allocation to unvested restricted shares by the weighted
average number of basic common shares outstanding for the period.
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2016
|
|
|
Three Months Ended March 31, 2015
|
|
|
|
|
Income
|
|
|
Average Shares
|
|
|
EPS
|
|
|
Income
|
|
|
Average Shares
|
|
|
EPS
|
Net income attributable to Trinity Industries, Inc.
|
|
|
|
$
|
97.2
|
|
|
|
|
|
|
|
|
|
$
|
180.2
|
|
|
|
|
|
|
|
Unvested restricted share participation
|
|
|
|
|
(2.9
|
)
|
|
|
|
|
|
|
|
|
|
(5.7
|
)
|
|
|
|
|
|
|
Net income attributable to Trinity Industries, Inc. - basic
|
|
|
|
|
94.3
|
|
|
|
148.3
|
|
|
$
|
0.64
|
|
|
|
174.5
|
|
|
|
151.2
|
|
|
$
|
1.15
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible subordinated notes
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
0.1
|
|
|
|
3.1
|
|
|
|
Net income attributable to Trinity Industries, Inc. - diluted
|
|
|
|
$
|
94.3
|
|
|
|
148.3
|
|
|
$
|
0.64
|
|
|
$
|
174.6
|
|
|
|
154.3
|
|
|
$
|
1.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trinity Industries, Inc.
Reconciliation of EBITDA
(in
millions)
(unaudited)
“EBITDA” is defined as net income plus interest expense, income taxes,
and depreciation and amortization including goodwill impairment charges.
EBITDA is not a calculation based on generally accepted accounting
principles. The amounts included in the EBITDA calculation are, however,
derived from amounts included in the historical consolidated statements
of operations data. In addition, EBITDA should not be considered as an
alternative to net income or operating income as an indicator of our
operating performance, or as an alternative to operating cash flows as a
measure of liquidity. We believe EBITDA assists investors in comparing a
company’s performance on a consistent basis without regard to
depreciation and amortization, which can vary significantly depending
upon many factors. However, the EBITDA measure presented in this press
release may not always be comparable to similarly titled measures by
other companies due to differences in the components of the calculation.
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2016
|
|
|
2015
|
Net income
|
|
|
|
$
|
102.1
|
|
|
$
|
189.0
|
Add:
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
45.8
|
|
|
|
51.5
|
Provision for income taxes
|
|
|
|
|
57.4
|
|
|
|
95.4
|
Depreciation and amortization expense
|
|
|
|
|
69.4
|
|
|
|
64.0
|
Earnings before interest expense, income taxes, and depreciation and
amortization expense
|
|
|
|
$
|
274.7
|
|
|
$
|
399.9
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160421006652/en/
Copyright Business Wire 2016