Breaking News

Tweet TWEET

Trinity Industries, Inc. Reports Strong First Quarter 2013 Results and Record New Railcar Orders of $2.0 Billion

  Trinity Industries, Inc. Reports Strong First Quarter 2013 Results and
  Record New Railcar Orders of $2.0 Billion

Business Wire

DALLAS -- April 30, 2013

Trinity Industries, Inc. (NYSE:TRN) today announced earnings results for the
first quarter ended March31, 2013, including the following significant
highlights:

  *First quarter total earnings per share of $0.99, including $0.08 per share
    of earnings from discontinued operations resulting from the completed
    exchange of the Company's remaining ready-mix assets for certain light
    weight aggregates assets during the quarter
  *First quarter earnings per share from continuing operations of $0.91, a
    38% increase year-over-year
  *Rail Group orders for 14,505 new railcars during the first quarter,
    increasing the backlog to a record 41,265 units with a record value of
    $5.1 billion
  *Energy Equipment Group orders of $48 million structural wind towers during
    the first quarter
  *Available liquidity at the end of the first quarter of nearly $1.1 billion

Trinity Industries, Inc. reported net income attributable to Trinity
stockholders of $79.1 million, or $0.99 per common diluted share, for the
first quarter ended March31, 2013. The Company reported net income from
continuing operations of $72.2 million, or $0.91 per common diluted share, for
the first quarter. Net income from continuing operations for the same quarter
of 2012 was $52.4 million, or $0.66 per common diluted share. Current year net
income from discontinued operations totaled $6.6 million, or $0.08 per common
diluted share, including a $7.0 million after-tax gain on the sale of the
Company's remaining ready-mix operations. Prior year first quarter results
benefitted from a lower effective tax rate of 32.9% due to the settlement of
certain tax audits.

Revenues for the first quarter of 2013 increased 4% to $932.9 million compared
to revenues of $896.2 million for the same quarter of 2012. The Company
reported an operating profit of $159.5 million in the first quarter of 2013, a
30% increase compared to an operating profit of $122.7 million for the same
quarter last year.

“I am pleased with our strong financial results for the first quarter,” said
Timothy R. Wallace, Trinity's Chairman, CEO and President. “Our performance
was positively impacted by our ability to align our manufacturing capacity
with the strong demand for our products that serve the oil, gas, and chemical
industries. Our employees are doing an outstanding job of converting
production capacity to meet customer needs for products that support these
industries. Demand for railcars that serve the oil, gas, and chemical
industries in North America surged during the first quarter contributing to a
record backlog for the Rail Group of $5.1 billion. We achieved additional
operating efficiencies during the quarter, most noticeably in the Rail Group.
Our Energy Equipment Group continued to show solid improvement during the
first quarter as our wind towers facilities operated at more efficient levels
than last year.”

Business Group Results

In the first quarter of 2013, the Rail Group reported revenues of $625.5
million and an operating profit of $102.9 million, an increase compared to the
first quarter of 2012 of 34% and 157%, respectively. The Rail Group shipped
5,230 railcars and received orders for 14,505 railcars during the first
quarter. The Rail Group backlog increased to a record $5.1 billion at
March31, 2013, representing a record 41,265 railcars, compared to a backlog
of $3.7 billion as of December31, 2012, representing 31,990 railcars.

During the first quarter of 2013, the Railcar Leasing and Management Services
Group reported leasing and management revenues of $134.3 million compared to
$127.4 million in the first quarter of 2012 due to continued growth in the
lease fleet and higher rental rates. In addition, the Group recognized revenue
of $0.1 million from sales of railcars from the lease fleet owned for less
than a year during the first quarter compared to $14.9 million in the first
quarter of 2012. Proceeds from the sale of railcars from the lease fleet owned
for more than a year at the time of sale are not included in revenue and
totaled $30.6 million in the first quarter of 2013 and $26.5 million in the
first quarter of 2012. Operating profit for this Group was $61.6 million for
the first quarter of 2013 compared to operating profit of $66.5 million during
the first quarter of 2012. Included in the operating results for the first
quarter of 2013 was $6.8 million of profit from railcar sales totaling $30.7
million compared to $6.6 million of profit from railcar sales totaling $41.4
million for the same period last year. Operating profit decreased for the
three months ended March31, 2013 compared to the same period last year
primarily due to higher maintenance and selling, engineering and
administrative expenses.

The Inland Barge Group reported revenues of $147.4 million compared to
revenues of $169.4 million in the first quarter of 2012. Operating profit for
this Group was $24.3 million in the first quarter of 2013 compared to $30.0
million in the first quarter of 2012. The decrease in revenues and operating
profit was due to lower volumes for hopper barges during the quarter. Prior
year operating profit included a $3.4 million net gain from the sale of leased
barges to third parties. During the first quarter of 2013, the Inland Barge
Group received orders of $66 million, and as of March31, 2013 had a backlog
of $483 million compared to a backlog of $564 million as of December31, 2012.

The Energy Equipment Group reported revenues of $154.7 million in the first
quarter of 2013 compared to revenues of $125.0 million in the same quarter of
2012. Revenues increased compared to the same period in 2012 due to increased
demand for large container vessels and higher structural wind tower shipments
related to improved market demand. Operating profit for the first quarter of
2013 increased to $14.9 million compared to a loss of $3.8 million in the same
quarter last year due to manufacturing challenges that negatively impacted the
Group's 2012 results. The Company received orders for $48 million of
structural wind towers during the quarter, resulting in a backlog for
structural wind towers as of March31, 2013 of $671 million compared to $680
million as of December31, 2012. Approximately $413 million of this backlog is
subject to litigation with a customer for the customer's breach of a long-term
supply contract for the manufacture of towers.

Revenues in the Construction Products Group were $103.8 million in the first
quarter of 2013 compared to revenues of $125.9 million in the first quarter of
2012. The Group recorded an operating profit of $7.7 million in the first
quarter of 2013 compared to an operating profit of $11.1 million in the first
quarter of 2012. The decline in revenues and operating profit for the first
quarter of 2013 compared to the same period in 2012 was primarily due to
softer pricing and lower volumes in our Highway Products business attributable
to lower demand and unfavorable weather conditions offset partially by higher
volumes in our Aggregates business and in other product lines as a result of
an acquisition in December 2012. In March 2013, the Company completed the sale
of its remaining ready-mix concrete operations which have been historically
reported as a component of the Construction Products Group. This divestiture
is considered a discontinued operation and, accordingly, the effects of its
operations have been excluded from the Construction Products Group for
financial reporting purposes.

At March 31, 2013, the Company had cash and marketable securities of $420.4
million. When combined with capacity under committed credit facilities, the
Company had approximately $1.1 billion of available liquidity at the end of
the first quarter.

Earnings Outlook

The Company's earnings guidance for the second quarter of 2013 is between
$0.88 and $0.95 per common diluted share compared to $0.84 per common diluted
share in the second quarter of 2012. For the full year of 2013, the Company
anticipates total earnings per common diluted share, including the effects of
discontinued operations, of between $3.80 and $4.05 compared to full year
earnings per common diluted share of $3.19 in 2012. Results for the second
quarter and full year 2013 could be impacted by a number of factors,
including, among others: the operating leverage and efficiencies that can be
achieved by the Company's manufacturing businesses; the level of sales and
profitability of railcars; the amount of profit eliminations due to railcar
additions to the Leasing Group; and the impact of weather conditions.

Conference Call

Trinity will hold a conference call at 11:00 a.m. Eastern on May1, 2013 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. An
audio replay may be accessed through the Company's website or by dialing (402)
220-0116 until 11:59 p.m. Eastern on May 8, 2013.

Trinity Industries, Inc., headquartered in Dallas, Texas, is a diversified
industrial company that owns market-leading businesses which provide 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,” “believes,” “estimates,” “expects,”
“intends,” “forecasts,” “may,” “will,” “should,” 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 “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,
                                                        2013      2012  
Revenues                                               $ 932.9       $ 896.2
Operating costs:
Cost of revenues                                         711.1         730.2
Selling, engineering, and administrative expenses        69.0          50.7
(Gain)/loss on disposition of property, plant, and
equipment:
Net gains on lease fleet sales                           (6.8  )       (3.7  )
Other                                                   0.1         (3.7  )
                                                        773.4       773.5 
Operating profit                                         159.5         122.7
Interest expense, net                                    48.8          47.5
Other (income) expense                                  (2.7  )      (2.9  )
Income before income taxes                               113.4         78.1
Provision for income taxes                              41.2        25.7  
Net income from continuing operations                    72.2          52.4
Net gain on sale of discontinued operations              7.0           —
Net income (loss) from discontinued operations          (0.4  )      (0.1  )
Net income                                               78.8          52.3
Net income (loss) attributable to noncontrolling        (0.3  )      (0.6  )
interest
Net income attributable to Trinity Industries,         $ 79.1       $ 52.9  
Inc.
                                                                     
Net income attributable to Trinity Industries,
Inc. per common share:
Basic
Continuing operations                                  $ 0.91        $ 0.66
Discontinued operations                                 0.08        —     
                                                       $ 0.99       $ 0.66  
Diluted
Continuing operations                                  $ 0.91        $ 0.66
Discontinued operations                                 0.08        —     
                                                       $ 0.99       $ 0.66  
Weighted average number of shares outstanding:
Basic                                                    76.9          77.8
Diluted                                                  77.0          78.1

Proceeds from the sales of railcars from the lease fleet owned more than one
year at the time of sale were $30.6 million and $26.5 million for the three
months ended March 31, 2013 and 2012, respectively.  Operating profit from
sales of railcars owned one year or less at the time of sale was $0.0 million
and $2.9 million for the three months ended March 31, 2013 and 2012,
respectively. Amounts previously reported have been adjusted to exclude
discontinued operations resulting from the sale of the Company's ready-mix
concrete operations.



Trinity Industries, Inc.
Condensed Segment Data
(in millions)
(unaudited)

                                                Three Months Ended
                                                  March 31,
Revenues:                                          2013       2012   
Rail Group                                        $ 625.5        $ 467.1
Construction Products Group                         103.8          125.9
Inland Barge Group                                  147.4          169.4
Energy Equipment Group                              154.7          125.0
Railcar Leasing and Management Services Group       134.4          142.3
All Other                                           19.3           15.7
Eliminations - lease subsidiary                     (198.0 )       (122.6 )
Eliminations - other                               (54.2  )      (26.6  )
Consolidated Total                                $ 932.9       $ 896.2  
                                                                 
                                                  Three Months Ended
                                                  March 31,
Operating profit (loss):                           2013         2012   
Rail Group                                        $ 102.9        $ 40.1
Construction Products Group                         7.7            11.1
Inland Barge Group                                  24.3           30.0
Energy Equipment Group                              14.9           (3.8   )
Railcar Leasing and Management Services Group       61.6           66.5
All Other                                           (2.6   )       1.2
Corporate                                           (16.6  )       (11.6  )
Eliminations - lease subsidiary                     (32.4  )       (10.9  )
Eliminations - other                               (0.3   )      0.1    
Consolidated Total                                $ 159.5       $ 122.7  

Amounts previously reported have been adjusted to exclude discontinued
operations resulting from the sale of the Company's ready-mix concrete
operations.



Trinity Industries, Inc.
Condensed Consolidated Balance Sheets
(in millions)
(unaudited)

                                                  March 31,   December 31,
                                                    2013          2012
Cash and cash equivalents                           $ 360.5       $   573.0
Short-term marketable securities                      59.9            —
Receivables, net of allowance                         414.2           390.0
Inventories                                           718.9           667.7
Restricted cash                                       215.3           223.2
Net property, plant, and equipment                    4,462.0         4,299.0
Goodwill                                              244.5           240.4
Assets held for sale and discontinued                 —               27.9
operations
Other assets                                         248.4          248.7
                                                    $ 6,723.7     $   6,669.9
                                                                  
Accounts payable                                    $ 200.0       $   188.2
Accrued liabilities                                   606.8           583.1
Debt, net of unamortized discount of $84.2 and        2,974.8         3,055.0
$87.5
Deferred income                                       43.5            44.5
Deferred income taxes                                 617.5           572.4
Liabilities held for sale and discontinued            —               3.7
operations
Other liabilities                                     89.9            85.4
Stockholders' equity                                 2,191.2        2,137.6
                                                    $ 6,723.7     $   6,669.9



Trinity Industries, Inc.
Additional Balance Sheet Information
(in millions)
(unaudited)

                                                March 31,     December 31,
                                                   2013           2012    
Property, Plant, and Equipment
Corporate/Manufacturing:
Property, plant, and equipment                    $ 1,328.6       $  1,260.1
Accumulated depreciation                           (738.1  )       (720.8  )
                                                   590.5          539.3   
Leasing:
Wholly-owned subsidiaries:
Machinery and other                                 9.7              9.6
Equipment on lease                                  3,831.2          3,662.6
Accumulated depreciation                           (492.1  )       (468.4  )
                                                   3,348.8        3,203.8 
Partially-owned subsidiary:
Equipment on lease                                  1,272.5          1,272.4
Accumulated depreciation                           (162.4  )       (153.8  )
                                                   1,110.1        1,118.6 
Net deferred profit on railcars sold to the
Leasing Group:
Sold to wholly-owned subsidiaries                   (408.1  )        (381.8  )
Sold to partially-owned subsidiary                 (179.3  )       (180.9  )
                                                   (587.4  )       (562.7  )
                                                  $ 4,462.0      $  4,299.0 
Leasing portfolio information:
Portfolio size (number of railcars):
Wholly-owned subsidiaries                           58,320           57,000
Partially-owned subsidiary                         14,455         14,455  
Total fleet                                        72,775         71,455  
Portfolio utilization:
Wholly-owned subsidiaries                           98.2    %        98.4    %
Partially-owned subsidiary                          99.1    %        99.2    %
Total fleet                                         98.4    %        98.6    %



Trinity Industries, Inc.
Additional Balance Sheet Information
(in millions)
(unaudited)

                                             March 31,     December 31,
                                                2013           2012    
Debt
Corporate/Manufacturing - Recourse:
Revolving credit facility                      $ —             $  —
Convertible subordinated notes                   450.0            450.0
Less: unamortized discount                      (84.2   )       (87.5   )
                                                 365.8            362.5
Other                                           1.1            1.2     
                                                366.9          363.7   
Leasing:
Wholly-owned subsidiaries:
Recourse:
Capital lease obligations                        45.1             45.8
Term loan                                       —              48.6    
                                                45.1           94.4    
Non-recourse:
Secured railcar equipment notes                  1,127.9          1,140.3
Warehouse facility                               167.9            173.6
Promissory notes                                418.2          424.1   
                                                1,714.0        1,738.0 
Partially-owned subsidiary - Non-recourse:
Senior secured notes                             170.0            170.0
Less: Owned by Trinity                          (108.8  )       (108.8  )
                                                 61.2             61.2
Secured railcar equipment notes                 787.6          797.7   
                                                848.8          858.9   
                                               $ 2,974.8      $  3,055.0 



Trinity Industries, Inc.
Additional Balance Sheet Information
(in millions)
(unaudited)

                                                March 31,     December 31,
                                                   2013           2012    
Leasing Debt Summary
Total Recourse Debt                               $ 45.1          $  94.4
Total Non-Recourse Debt^(1)                        2,562.8        2,596.9 
                                                  $ 2,607.9      $  2,691.3 
Total Leasing Debt
Wholly-owned subsidiaries                         $ 1,759.1       $  1,832.4
Partially-owned subsidiary^(1)                     848.8          858.9   
                                                  $ 2,607.9      $  2,691.3 
Equipment on Lease^(2)
Wholly-owned subsidiaries                         $ 3,348.8       $  3,203.8
Partially-owned subsidiary                         1,110.1        1,118.6 
                                                  $ 4,458.9      $  4,322.4 
Total Leasing Debt as a % of Equipment on
Lease
Wholly-owned subsidiaries                           52.5    %        57.2    %
Partially-owned subsidiary                          76.5    %        76.8    %
Combined                                            58.5    %        62.3    %

(1)  Excludes $108.8 million in TRIP Holdings' Senior Secured Notes owned by
      Trinity and eliminated in consolidation.
(2)   Excludes net deferred profit on railcars sold to the Leasing Group.



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. Amounts previously reported
have been adjusted to exclude discontinued operations resulting from the sale
of the Company's ready-mix concrete operations.

                 Three Months Ended                Three Months Ended
                   March 31, 2013                      March 31, 2012
                   Income       Average                Income       Average
                   (Loss)     Shares    EPS        (Loss)               EPS
                                                                    Shares
Net income
from               $ 72.2                              $ 52.4
continuing
operations
Less: net
income (loss)
from
continuing
operations          (0.3 )                             (0.6 )
attributable
to
noncontrolling
interest
Net income
from
continuing
operations           72.5                                53.0
attributable
to Trinity
Industries,
Inc.
Unvested
restricted          (2.3 )                             (1.7 )
share
participation
Net income
from
continuing
operations           70.2       76.9        $ 0.91       51.3       77.8        $ 0.66
attributable
to Trinity
Industries,
Inc. - basic
Effect of
dilutive
securities:
Stock options       —         0.1                     —         0.3
Net income
from
continuing
operations         $ 70.2      77.0        $ 0.91     $ 51.3      78.1        $ 0.66
attributable
to Trinity
Industries,
Inc. - diluted
Net income
(loss) from
discontinued       $ 6.6                               $ (0.1 )
operations,
net of taxes
Unvested
restricted          (0.2 )                             —    
share
participation
Net income
(loss) from
discontinued         6.4        76.9        $ 0.08       (0.1 )     77.8        $ —
operations,
net of taxes -
basic
Effect of
dilutive
securities:
Stock options       —         0.1                     —         0.3
Net income
(loss) from
discontinued       $ 6.4       77.0        $ 0.08     $ (0.1 )     78.1        $ —
operations,
net of taxes -
diluted



Trinity Industries, Inc.
Reconciliation of EBITDA
(in millions)
(unaudited)

“EBITDA” is defined as income (loss) from continuing operations 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 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,
                                                           2013      2012
                                                                       
Net income from continuing operations                      $ 72.2      $ 52.4
Add:
Interest expense                                             49.2        47.9
Provision for income taxes                                   41.2        25.7
Depreciation and amortization expense                       50.0       47.6
Earnings from continuing operations before interest
expense,                                                   $ 212.6     $ 173.6
income taxes, and depreciation and amortization
expense

Amounts previously reported have been adjusted to exclude discontinued
operations resulting from the sale of the Company's ready-mix concrete
operations.

Contact:

Trinity Industries, Inc.
Jessica Greiner, 214-631-4420
Director of Investor Relations