Trinity Industries, Inc. Announces First Quarter 2017 Results
Trinity Industries, Inc. (NYSE:TRN) today announced earnings results for the first quarter ended March 31, 2017, including
the following:
- Quarterly revenues and net income of $877.3 million and $46.0 million, respectively, compared to $1.2
billion and $97.2 million, respectively, in 2016
- Quarterly earnings per common diluted share of $0.30 compared to $0.64 per share in 2016
- Quarterly deliveries and orders totaling 3,770 and 970 railcars, respectively, in the Rail Group,
compared to 7,145 and 1,620 railcars, respectively, in 2016
- Rail Group backlog of $2.7 billion as of March 31, 2017, representing 26,420 railcars, compared to a
backlog of $3.0 billion as of December 31, 2016, representing 29,220 railcars
- Quarterly Railcar Leasing and Management Services Group operating profit of $85.0 million, a 14.6%
increase year-over-year
- Anticipates full year 2017 earnings per common diluted share of between $1.00 and $1.25 compared to
its previous full year 2017 earnings guidance of between $1.00 and $1.35
Consolidated Results
Trinity Industries, Inc. reported net income attributable to Trinity stockholders of $46.0 million, or $0.30 per common diluted
share, for the first quarter ended March 31, 2017. Net income for the same quarter of 2016 was $97.2 million, or $0.64 per
common diluted share. Revenues for the first quarter of 2017 totaled $877.3 million compared to revenues of $1.2 billion for the
same quarter of 2016. First quarter 2017 results benefitted from a lower effective tax rate of 28.7% compared to 36.0% in the same
quarter of 2016 due to the settlement of certain tax audits. For the full year 2017, the Company continues to expect a 36.0%
effective tax rate.
“The performance of our businesses during the first quarter of 2017 was in line with our expectations,” said Timothy R. Wallace,
Trinity’s Chairman, CEO and President. “The results of our Rail and Inland Barge Groups reflect substantial declines in production
volumes compared to last year as our railcar and barge manufacturing businesses continue to face challenging market conditions.
During the first quarter, our leasing company generated strong operating earnings, increasing operating profit by 14.6% compared to
last year.”
Mr. Wallace added, “We continue to observe a unique mixture of uncertainty and optimism in the majority of the markets we serve.
The flexible nature of Trinity’s business model positions our company to respond when market conditions shift.”
Business Group Results
In the first quarter of 2017, the Rail Group reported revenues of $478.3 million compared to revenues of $846.9 million in the
first quarter of 2016. Operating profit and profit margin for the Rail Group were $50.7 million and 10.6% in the first quarter of
2017 compared to $157.2 million and 18.6% in the first quarter of 2016. The decreases in revenues and operating profit were
primarily due to significantly lower railcar deliveries. The Rail Group delivered 3,770 railcars and received orders for 970
railcars during the first quarter of 2017 compared to 7,145 and 1,620 railcars, respectively, in 2016. The Rail Group had a backlog
of $2.7 billion as of March 31, 2017, representing 26,420 railcars, compared to a backlog of $3.0 billion as of
December 31, 2016, representing 29,220 railcars.
The Railcar Leasing and Management Services Group reported total revenues of $178.9 million in the first quarter of 2017
compared to total revenues of $178.5 million in the same quarter of 2016. Operating profit for this Group was $85.0 million in the
first quarter of 2017 compared to operating profit of $74.2 million in the first quarter of 2016, which included $4.4 million of
profit from the sales of leased railcars. The increase in operating profit during the first quarter of 2017 was primarily due to
net additions to the lease fleet and lower maintenance and compliance expenses, partially offset by the effect of lower average
lease rates and a reduced volume of sales of leased railcars. Supplemental information for the Leasing Group is provided in the
accompanying tables.
The Inland Barge Group reported revenues of $62.7 million in the first quarter of 2017 compared to revenues of $110.8 million in
the first quarter of 2016. Operating profit and profit margin for this Group were $6.4 million and 10.2% in the first quarter of
2017 compared to $12.6 million and 11.4% in the first quarter of 2016. The decreases in revenues and operating profit compared to
the same quarter last year were primarily due to lower barge deliveries and changes in product mix. The Inland Barge Group received
orders of $52.6 million during the quarter and, as of March 31, 2017, had a backlog of $109.9 million compared to a backlog of
$120.0 million as of December 31, 2016.
The Energy Equipment Group reported revenues of $255.4 million in the first quarter of 2017 compared to revenues of $273.4
million in the same quarter of 2016. Operating profit and profit margin for this Group were $29.8 million and 11.7% compared to
$37.4 million and 13.7% in the same quarter last year. The decreases in revenues and operating profit compared to the same quarter
last year were primarily due to lower delivery volumes in most of the Group's product lines. The backlog for structural wind towers
as of March 31, 2017 was $1.0 billion compared to a backlog of $1.1 billion as of December 31, 2016.
The Construction Products Group reported revenues of $123.1 million in the first quarter of 2017 compared to revenues of $124.9
million in the first quarter of 2016. Operating profit for the first quarter of 2017 decreased to $15.6 million compared to $15.9
million in the same quarter last year while operating margin remained flat at 12.7%. Revenues and operating profit decreased
slightly compared to the same quarter last year primarily as a result of lower volumes in our construction aggregates business
partially offset by higher volumes in our highway products and other businesses.
Cash and Liquidity
At March 31, 2017, the Company had cash, cash equivalents, and short-term marketable securities of $778.8 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
There were no shares repurchased during the first quarter of 2017. The Company's current share repurchase authorization through
December 31, 2017 remains at $215.4 million.
Earnings Guidance for 2017
For the full year of 2017, the Company anticipates earnings per common diluted share of between $1.00 and $1.25 compared to its
previous guidance of between $1.00 and $1.35 per share.
In the first quarter, the Company was required to adopt a new accounting standard, Accounting Standard Update No. 2016-09
“Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting” which changed the accounting for
certain aspects of share-based payments to employees. As a result, on a go forward basis, the Company anticipates there will be
greater volatility in the provision for income taxes, primarily in the second quarter each year when the Company's share-based
payments typically vest, resulting from stock price fluctuations between the grant date and the vest date. Based on
yesterday's closing stock price, the effective tax rate for the second quarter of 2017 is estimated to be approximately
41.0%. For the full year 2017, the Company continues to expect an effective tax rate of 36.0%.
Actual results in 2017 may differ from present expectations and could be impacted by a number of factors including, among
others, the risk factors disclosed in "Risk Factors" and "Forward-Looking Statements" in the Company's Annual Report on Form 10-K
for the most recent fiscal year.
Conference Call
Trinity will hold a conference call at 11:00 a.m. Eastern on April 26, 2017 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) 220-2553 until 11:59 p.m. Eastern on May 3, 2017.
Company Description
Trinity Industries, Inc., headquartered in Dallas, Texas, is a diversified industrial company that owns complementary
market-leading businesses providing products and services to the energy, chemical, agriculture, transportation, and construction
sectors, among others. 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, |
|
|
|
2017 |
|
|
2016 |
| Revenues |
|
|
$ |
877.3 |
|
|
|
$ |
1,187.9 |
|
| Operating costs: |
|
|
|
|
|
|
| Cost of revenues |
|
|
|
659.7 |
|
|
|
|
889.9 |
|
| Selling, engineering, and administrative expenses |
|
|
|
102.3 |
|
|
|
|
96.5 |
|
| Losses (gains) on dispositions of property: |
|
|
|
|
|
|
| Net gains on lease fleet sales |
|
|
|
— |
|
|
|
|
(2.1 |
) |
| Other |
|
|
|
(1.3 |
) |
|
|
|
0.2 |
|
|
|
|
|
760.7 |
|
|
|
|
984.5 |
|
| Operating profit |
|
|
|
116.6 |
|
|
|
|
203.4 |
|
| Interest expense, net |
|
|
|
43.3 |
|
|
|
|
44.6 |
|
| Other, net |
|
|
|
0.8 |
|
|
|
|
(0.7 |
) |
| Income before income taxes |
|
|
|
72.5 |
|
|
|
|
159.5 |
|
| Provision for income taxes |
|
|
|
20.8 |
|
|
|
|
57.4 |
|
| Net income |
|
|
|
51.7 |
|
|
|
|
102.1 |
|
| Net income attributable to noncontrolling interest |
|
|
|
5.7 |
|
|
|
|
4.9 |
|
| Net income attributable to Trinity Industries, Inc. |
|
|
$ |
46.0 |
|
|
|
$ |
97.2 |
|
|
|
|
|
|
|
|
| Net income attributable to Trinity Industries, Inc. per common share: |
|
|
|
|
|
|
| Basic |
|
|
$ |
0.30 |
|
|
|
$ |
0.64 |
|
| Diluted |
|
|
$ |
0.30 |
|
|
|
$ |
0.64 |
|
| Weighted average number of shares outstanding: |
|
|
|
|
|
|
| Basic |
|
|
|
148.7 |
|
|
|
|
148.3 |
|
| Diluted |
|
|
|
150.6 |
|
|
|
|
148.3 |
|
|
|
|
|
|
|
|
|
|
|
|
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.
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| Trinity Industries, Inc. |
| Condensed Segment Data |
|
(in millions)
|
|
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
March 31, |
| Revenues: |
|
|
2017 |
|
|
2016 |
| Rail Group |
|
|
$ |
478.3 |
|
|
|
$ |
846.9 |
|
| Construction Products Group |
|
|
|
123.1 |
|
|
|
|
124.9 |
|
| Inland Barge Group |
|
|
|
62.7 |
|
|
|
|
110.8 |
|
| Energy Equipment Group |
|
|
|
255.4 |
|
|
|
|
273.4 |
|
| Railcar Leasing and Management Services Group |
|
|
|
178.9 |
|
|
|
|
178.5 |
|
| All Other |
|
|
|
22.8 |
|
|
|
|
21.9 |
|
| Segment Totals before Eliminations |
|
|
|
1,121.2 |
|
|
|
|
1,556.4 |
|
| Eliminations - lease subsidiary |
|
|
|
(181.0 |
) |
|
|
|
(283.3 |
) |
| Eliminations - other |
|
|
|
(62.9 |
) |
|
|
|
(85.2 |
) |
| Consolidated Total |
|
|
$ |
877.3 |
|
|
|
$ |
1,187.9 |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, |
| Operating profit (loss): |
|
|
2017 |
|
|
2016 |
| Rail Group |
|
|
$ |
50.7 |
|
|
|
$ |
157.2 |
|
| Construction Products Group |
|
|
|
15.6 |
|
|
|
|
15.9 |
|
| Inland Barge Group |
|
|
|
6.4 |
|
|
|
|
12.6 |
|
| Energy Equipment Group |
|
|
|
29.8 |
|
|
|
|
37.4 |
|
| Railcar Leasing and Management Services Group |
|
|
|
85.0 |
|
|
|
|
74.2 |
|
| All Other |
|
|
|
(4.6 |
) |
|
|
|
(5.1 |
) |
| Segment Totals before Eliminations and Corporate Expenses |
|
|
|
182.9 |
|
|
|
|
292.2 |
|
| Corporate |
|
|
|
(35.0 |
) |
|
|
|
(24.7 |
) |
| Eliminations - lease subsidiary |
|
|
|
(28.9 |
) |
|
|
|
(65.5 |
) |
| Eliminations - other |
|
|
|
(2.4 |
) |
|
|
|
1.4 |
|
| Consolidated Total |
|
|
$ |
116.6 |
|
|
|
$ |
203.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trinity Industries, Inc. |
|
|
| Leasing Group |
|
|
| Condensed Results of Operations (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, |
|
|
|
2017 |
|
|
2016 |
|
|
|
($ in millions) |
| Revenues: |
|
|
|
|
|
|
|
|
| Leasing and management |
|
|
$ |
178.9 |
|
|
|
$ |
170.5 |
|
| Sales of railcars owned one year or less at the time of
sale(1) |
|
|
|
— |
|
|
|
|
8.0 |
|
| Total revenues |
|
|
$ |
178.9 |
|
|
|
$ |
178.5 |
|
| Operating profit: |
|
|
|
|
|
|
|
|
| Leasing and management |
|
|
$ |
85.0 |
|
|
|
$ |
69.8 |
|
| Railcar sales(1): |
|
|
|
|
|
|
|
|
| Railcars owned one year or less at the time of sale |
|
|
|
— |
|
|
|
|
2.3 |
|
| Railcars owned more than one year at the time of sale |
|
|
|
— |
|
|
|
|
2.1 |
|
| Total operating profit |
|
|
$ |
85.0 |
|
|
|
$ |
74.2 |
|
| Operating profit margin: |
|
|
|
|
|
|
|
|
| Leasing and management |
|
|
|
47.5 |
% |
|
|
|
40.9 |
% |
| Railcar sales |
|
|
|
*
|
|
|
|
*
|
| Total operating profit margin |
|
|
|
47.5 |
% |
|
|
|
41.6 |
% |
| Selected expense information(2): |
|
|
|
|
|
|
|
|
| Depreciation |
|
|
$ |
42.1 |
|
|
|
$ |
37.4 |
|
| Maintenance and compliance |
|
|
$ |
20.5 |
|
|
|
$ |
31.6 |
|
| Rent |
|
|
$ |
10.1 |
|
|
|
$ |
9.5 |
|
| Interest |
|
|
$ |
30.6 |
|
|
|
$ |
31.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016 |
| Leasing portfolio information: |
|
|
|
|
|
|
|
|
| Portfolio size (number of railcars): |
|
|
|
|
|
|
|
|
| Wholly-owned |
|
|
|
62,255 |
|
|
|
|
60,440 |
|
| Partially-owned |
|
|
|
24,665 |
|
|
|
|
24,670 |
|
|
|
|
|
86,920 |
|
|
|
|
85,110 |
|
| Portfolio utilization |
|
|
|
97.5 |
% |
|
|
|
97.6 |
% |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2017 |
|
|
2016 |
|
|
|
(in millions) |
| Proceeds from sales of leased railcars: |
|
|
|
|
|
|
|
|
| Leasing Group: |
|
|
|
|
|
|
|
|
| Railcars owned one year or less at the time of sale |
|
|
$ |
— |
|
|
|
$ |
8.0 |
|
| Railcars owned more than one year at the time of sale |
|
|
|
— |
|
|
|
|
6.7 |
|
| Rail Group |
|
|
|
— |
|
|
|
|
8.1 |
|
|
|
|
$ |
— |
|
|
|
$ |
22.8 |
|
* Not meaningful
(1) The Company recognizes sales of railcars from the lease fleet which have been owned by the lease fleet for one
year or less as revenue. Sales of railcars from the lease fleet which have been owned by the lease fleet for more than one year are
recognized as a net gain or loss from the disposal of a long-term asset.
(2)Depreciation, maintenance and compliance, 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,
2017 |
|
|
December 31,
2016 |
| Cash and cash equivalents |
|
|
$ |
586.7 |
|
|
$ |
563.4 |
| Short-term marketable securities |
|
|
|
192.1 |
|
|
|
234.7 |
| Receivables, net of allowance |
|
|
|
323.7 |
|
|
|
378.7 |
| Income tax receivable |
|
|
|
133.0 |
|
|
|
102.1 |
| Inventories |
|
|
|
632.1 |
|
|
|
665.8 |
| Restricted cash |
|
|
|
183.8 |
|
|
|
178.2 |
| Net property, plant, and equipment |
|
|
|
6,080.1 |
|
|
|
5,966.8 |
| Goodwill |
|
|
|
754.3 |
|
|
|
754.1 |
| Other assets |
|
|
|
257.6 |
|
|
|
281.5 |
|
|
|
$ |
9,143.4 |
|
|
$ |
9,125.3 |
|
|
|
|
|
|
|
| Accounts payable |
|
|
$ |
156.4 |
|
|
$ |
156.1 |
| Accrued liabilities |
|
|
|
398.6 |
|
|
|
426.1 |
| Debt, net of unamortized discount of $22.5 and $27.1 |
|
|
|
3,036.0 |
|
|
|
3,056.6 |
| Deferred income |
|
|
|
22.7 |
|
|
|
23.5 |
| Deferred income taxes |
|
|
|
1,128.5 |
|
|
|
1,072.9 |
| Other liabilities |
|
|
|
52.3 |
|
|
|
79.0 |
| Stockholders' equity: |
|
|
|
|
|
|
| Trinity Industries, Inc. |
|
|
|
3,957.1 |
|
|
|
3,918.5 |
| Noncontrolling interest |
|
|
|
391.8 |
|
|
|
392.6 |
|
|
|
|
4,348.9 |
|
|
|
4,311.1 |
|
|
|
$ |
9,143.4 |
|
|
$ |
9,125.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trinity Industries, Inc. |
| Additional Balance Sheet Information |
|
(in millions)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017 |
|
|
December 31,
2016 |
| Property, Plant, and Equipment |
|
|
|
|
|
|
| Corporate/Manufacturing: |
|
|
|
|
|
|
| Property, plant, and equipment |
|
|
$ |
1,955.8 |
|
|
|
$ |
1,936.1 |
|
| Accumulated depreciation |
|
|
|
(999.8 |
) |
|
|
|
(974.4 |
) |
|
|
|
|
956.0 |
|
|
|
|
961.7 |
|
| Leasing: |
|
|
|
|
|
|
| Wholly-owned subsidiaries: |
|
|
|
|
|
|
| Machinery and other |
|
|
|
10.7 |
|
|
|
|
10.7 |
|
| Equipment on lease |
|
|
|
4,862.3 |
|
|
|
|
4,673.0 |
|
| Accumulated depreciation |
|
|
|
(793.2 |
) |
|
|
|
(760.1 |
) |
|
|
|
|
4,079.8 |
|
|
|
|
3,923.6 |
|
| Partially-owned subsidiaries: |
|
|
|
|
|
|
| Equipment on lease |
|
|
|
2,309.2 |
|
|
|
|
2,309.4 |
|
| Accumulated depreciation |
|
|
|
(445.3 |
) |
|
|
|
(429.8 |
) |
|
|
|
|
1,863.9 |
|
|
|
|
1,879.6 |
|
|
|
|
|
|
|
|
| Deferred profit on railcars sold to the Leasing Group |
|
|
|
(976.9 |
) |
|
|
|
(948.2 |
) |
| Accumulated amortization |
|
|
|
157.3 |
|
|
|
|
150.1 |
|
|
|
|
|
(819.6 |
) |
|
|
|
(798.1 |
) |
|
|
|
$ |
6,080.1 |
|
|
|
$ |
5,966.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trinity Industries, Inc. |
| Additional Balance Sheet Information |
|
(in millions)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017 |
|
|
December 31,
2016 |
| Debt |
|
|
|
|
|
|
| Corporate - Recourse: |
|
|
|
|
|
|
| Revolving credit facility |
|
|
$ |
— |
|
|
|
$ |
— |
|
| Senior notes due 2024, net of unamortized discount of $0.3 and $0.4 |
|
|
|
399.7 |
|
|
|
|
399.6 |
|
| Convertible subordinated notes, net of unamortized discount of $22.2 and
$26.7 |
|
|
|
427.2 |
|
|
|
|
422.7 |
|
|
|
|
|
826.9 |
|
|
|
|
822.3 |
|
| Less: unamortized debt issuance costs |
|
|
|
(3.5 |
) |
|
|
|
(3.7 |
) |
|
|
|
|
823.4 |
|
|
|
|
818.6 |
|
| Leasing: |
|
|
|
|
|
|
| Wholly-owned subsidiaries: |
|
|
|
|
|
|
| Recourse: |
|
|
|
|
|
|
| Capital lease obligations, net of unamortized debt issuance costs of $0.1 and
$0.1 |
|
|
|
31.1 |
|
|
|
|
32.0 |
|
|
|
|
|
31.1 |
|
|
|
|
32.0 |
|
| Non-recourse: |
|
|
|
|
|
|
| Secured railcar equipment notes |
|
|
|
636.3 |
|
|
|
|
647.3 |
|
| Warehouse facility |
|
|
|
202.0 |
|
|
|
|
204.1 |
|
|
|
|
|
838.3 |
|
|
|
|
851.4 |
|
| Less: unamortized debt issuance costs |
|
|
|
(10.5 |
) |
|
|
|
(11.4 |
) |
|
|
|
|
827.8 |
|
|
|
|
840.0 |
|
| Partially-owned subsidiaries - Non-recourse: |
|
|
|
|
|
|
| Secured railcar equipment notes |
|
|
|
1,368.3 |
|
|
|
|
1,381.0 |
|
| Less: unamortized debt issuance costs |
|
|
|
(14.6 |
) |
|
|
|
(15.0 |
) |
|
|
|
|
1,353.7 |
|
|
|
|
1,366.0 |
|
|
|
|
$ |
3,036.0 |
|
|
|
$ |
3,056.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trinity Industries, Inc. |
| Additional Balance Sheet Information |
|
($ in millions)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
March 31,
2017 |
|
|
December 31,
2016 |
| Leasing Debt Summary |
|
|
|
|
|
|
| Total Recourse Debt |
|
|
$ |
31.1 |
|
|
|
$ |
32.0 |
|
| Total Non-Recourse Debt |
|
|
|
2,181.5 |
|
|
|
|
2,206.0 |
|
|
|
|
$ |
2,212.6 |
|
|
|
$ |
2,238.0 |
|
| Total Leasing Debt |
|
|
|
|
|
|
| Wholly-owned subsidiaries |
|
|
$ |
858.9 |
|
|
|
$ |
872.0 |
|
| Partially-owned subsidiaries |
|
|
|
1,353.7 |
|
|
|
|
1,366.0 |
|
|
|
|
$ |
2,212.6 |
|
|
|
$ |
2,238.0 |
|
| Equipment on Lease(1) |
|
|
|
|
|
|
| Wholly-owned subsidiaries |
|
|
$ |
4,079.8 |
|
|
|
$ |
3,923.6 |
|
| Partially-owned subsidiaries |
|
|
|
1,863.9 |
|
|
|
|
1,879.6 |
|
|
|
|
$ |
5,943.7 |
|
|
|
$ |
5,803.2 |
|
| Total Leasing Debt as a % of Equipment on Lease |
|
|
|
|
|
|
| Wholly-owned subsidiaries |
|
|
|
21.1 |
% |
|
|
|
22.2 |
% |
| Partially-owned subsidiaries |
|
|
|
72.6 |
% |
|
|
|
72.7 |
% |
| Combined |
|
|
|
37.2 |
% |
|
|
|
38.6 |
% |
(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, |
|
|
|
2017 |
|
|
2016 |
| Operating activities: |
|
|
|
|
|
|
| Net income |
|
|
$ |
51.7 |
|
|
|
$ |
102.1 |
|
| Adjustments to reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
| Depreciation and amortization |
|
|
|
72.8 |
|
|
|
|
69.4 |
|
| Net gains on railcar lease fleet sales owned more than one year at the time of
sale |
|
|
|
— |
|
|
|
|
(2.1 |
) |
| Other |
|
|
|
69.0 |
|
|
|
|
76.8 |
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
| (Increase) decrease in receivables |
|
|
|
24.1 |
|
|
|
|
67.9 |
|
| (Increase) decrease in inventories |
|
|
|
33.7 |
|
|
|
|
7.0 |
|
| Increase (decrease) in accounts payable and accrued liabilities |
|
|
|
(26.3 |
) |
|
|
|
(66.3 |
) |
| Other |
|
|
|
(4.9 |
) |
|
|
|
31.3 |
|
| Net cash provided by operating activities |
|
|
|
220.1 |
|
|
|
|
286.1 |
|
| Investing activities: |
|
|
|
|
|
|
| Proceeds from railcar lease fleet sales owned more than one year at the time of
sale |
|
|
|
— |
|
|
|
|
6.7 |
|
| Proceeds from dispositions of property |
|
|
|
3.6 |
|
|
|
|
1.1 |
|
| Capital expenditures - leasing, net of sold lease fleet railcars owned one year or
less with a net cost of $ – and $5.7 |
|
|
|
(162.9 |
) |
|
|
|
(222.8 |
) |
| Capital expenditures - manufacturing and other |
|
|
|
(24.3 |
) |
|
|
|
(26.3 |
) |
| (Increase) decrease in short-term marketable securities |
|
|
|
42.6 |
|
|
|
|
(115.0 |
) |
| Other |
|
|
|
0.5 |
|
|
|
|
0.2 |
|
| Net cash required by investing activities |
|
|
|
(140.5 |
) |
|
|
|
(356.1 |
) |
| Financing activities: |
|
|
|
|
|
|
| Payments to retire debt |
|
|
|
(26.7 |
) |
|
|
|
(30.4 |
) |
| Shares repurchased |
|
|
|
— |
|
|
|
|
(34.7 |
) |
| Dividends paid to common shareholders |
|
|
|
(16.7 |
) |
|
|
|
(16.8 |
) |
| Purchase of shares to satisfy employee tax on vested stock |
|
|
|
— |
|
|
|
|
(0.1 |
) |
| Distributions to noncontrolling interest |
|
|
|
(7.3 |
) |
|
|
|
(6.8 |
) |
| (Increase) decrease in restricted cash |
|
|
|
(5.6 |
) |
|
|
|
10.2 |
|
| Other |
|
|
|
— |
|
|
|
|
(1.7 |
) |
| Net cash required by financing activities |
|
|
|
(56.3 |
) |
|
|
|
(80.3 |
) |
| Net increase (decrease) in cash and cash equivalents |
|
|
|
23.3 |
|
|
|
|
(150.3 |
) |
| Cash and cash equivalents at beginning of period |
|
|
|
563.4 |
|
|
|
|
786.0 |
|
| Cash and cash equivalents at end of period |
|
|
$ |
586.7 |
|
|
|
$ |
635.7 |
|
| |
| |
|
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, 2017 |
|
|
Three Months Ended
March 31, 2016 |
|
|
|
Income |
|
|
Average
Shares
|
|
|
EPS |
|
|
Income |
|
|
Average
Shares
|
|
|
EPS |
| Net income attributable to Trinity Industries, Inc. |
|
|
$ |
46.0 |
|
|
|
|
|
|
|
|
|
$ |
97.2 |
|
|
|
|
|
|
|
| Unvested restricted share participation |
|
|
|
(1.2 |
) |
|
|
|
|
|
|
|
|
|
(2.9 |
) |
|
|
|
|
|
|
| Net income attributable to Trinity Industries, Inc. - basic |
|
|
|
44.8 |
|
|
|
148.7 |
|
|
$ |
0.30 |
|
|
|
94.3 |
|
|
|
148.3 |
|
|
$ |
0.64 |
| Effect of dilutive securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Convertible subordinated notes |
|
|
|
— |
|
|
|
1.9 |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
| Net income attributable to Trinity Industries, Inc. - diluted |
|
|
$ |
44.8 |
|
|
|
150.6 |
|
|
$ |
0.30 |
|
|
$ |
94.3 |
|
|
|
148.3 |
|
|
$ |
0.64 |
| |
| |
|
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, |
|
|
|
2017 |
|
|
2016 |
| Net income |
|
|
$ |
51.7 |
|
|
$ |
102.1 |
| Add: |
|
|
|
|
|
|
| Interest expense |
|
|
|
45.0 |
|
|
|
45.8 |
| Provision for income taxes |
|
|
|
20.8 |
|
|
|
57.4 |
| Depreciation and amortization expense |
|
|
|
72.8 |
|
|
|
69.4 |
| Earnings before interest expense, income taxes, and depreciation and
amortization expense |
|
|
$ |
190.3 |
|
|
$ |
274.7 |
Trinity Industries, Inc.
Investor Contact:
Preston Bass, 214-631-4420
Director, Investor Relations
or
Media Contact:
Jack Todd, 214-589-8909
Vice President, Public Affairs
View source version on businesswire.com: http://www.businesswire.com/news/home/20170425006747/en/