Trinity Industries, Inc. Reports Third Quarter 2012 Earnings Growth Of 100% And Raises Full Year 2012 Earnings Guidance

Revenues in the Construction Products Group were $154.3 million in the third quarter of 2012 compared to revenues of $164.8 million in the third quarter of 2011. The Group recorded an operating profit of $12.7 million in the third quarter of 2012 compared to an operating profit of $17.8 million in the third quarter of 2011. The decline in revenues and operating profit for the three month period ended September 30, 2012 compared to the same period in 2011 was primarily attributable to competitive pricing pressures and higher operating expenses in the Highway Products business offset partially by improved operating efficiencies in the Concrete and Aggregates business.

Share Repurchase Activity

During the third quarter, the Company announced a new $200 million share repurchase program that is effective from October 1, 2012 through December 31, 2014, replacing the Company’s previous program approved in 2010, also with an authorization of $200 million. Under its previous share repurchase program, the Company repurchased 142,000 shares of common stock at a cost of $4.0 million during the third quarter.

Conference Call

Trinity will hold a conference call at 11:00 a.m. Eastern on October 25, 2012 to discuss its third 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 [phone] until 11:59 p.m. Eastern on November 1, 2012.

Trinity Industries, Inc., headquartered in Dallas, Texas, is a diversified industrial company that owns a variety of market-leading businesses which provide products and services to the industrial, energy, transportation, 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
		September 30,
		2012				2011
Revenues (1)		$	937.5			$	791.1
Operating costs:
Cost of revenues			755.6				634.1
Selling, engineering, and administrative expenses			58.5				53.5
(Gain)/loss on disposition of property, plant, and equipment:
Net gains on lease fleet sales (1)			(17.0	)			(1.6	)
Other			(1.5	)			(0.3	)
			795.6				685.7
Operating profit			141.9				105.4
Interest expense, net			47.4				47.4
Other (income) expense			(1.4	)			5.3
Income before income taxes			95.9				52.7
Provision for income taxes			32.8				21.1
Net income			63.1				31.6
Net income (loss) attributable to noncontrolling interest			(0.1	)			(0.3	)
Net income attributable to Trinity Industries, Inc.		$	63.2			$	31.9
Net income attributable to Trinity Industries, Inc. per common share:
Basic		$	0.80			$	0.40
Diluted		$	0.80			$	0.40
Weighted average number of shares outstanding:
Basic			76.5				77.7
Diluted			76.7				77.9

(1) In 2011, the Company adopted the emerging industry policy of recognizing sales of railcars from the lease fleet which have been owned by the lease fleet for more than one year as a net gain or loss from the disposal of a long-term asset. Proceeds from the sales of railcars owned more than one year at the time of sale were $60.8 million and $5.7 million for the three months ended September 30, 2012 and 2011, respectively. There is no change in accounting treatment for sales of railcars from the lease fleet which have been owned by the lease fleet for one year or less which continue to be reported in revenues and cost of revenues. Operating profit from sales of railcars owned one year or less at the time of sale was $4.3 million and $4.9 million for the three months ended September 30, 2012 and 2011, respectively. Prior year reported amounts have been reclassified to conform to this policy.

Trinity Industries, Inc.
Condensed Consolidated Income Statements
(in millions, except per share amounts)
(unaudited)
		Nine Months Ended
		September 30,
		2012				2011
Revenues (1)		$	2,891.2			$	2,133.6
Operating costs:
Cost of revenues			2,333.5				1,703.3
Selling, engineering, and administrative expenses			168.4				151.3
(Gain)/loss on disposition of property, plant, and equipment:
Net gains on lease fleet sales (1)			(22.3	)			(3.1	)
Other			(7.6	)			(4.2	)
			2,472.0				1,847.3
Operating profit			419.2				286.3
Interest expense, net			142.5				135.0
Other (income) expense			(4.4	)			4.2
Income before income taxes			281.1				147.1
Provision for income taxes			98.2				58.3
Net income			182.9				88.8
Net income (loss) attributable to noncontrolling interest			(1.0	)			2.7
Net income attributable to Trinity Industries, Inc.		$	183.9			$	86.1
Net income attributable to Trinity Industries, Inc. per common share:
Basic		$	2.30			$	1.07
Diluted		$	2.29			$	1.07
Weighted average number of shares outstanding:
Basic			77.3				77.4
Diluted			77.5				77.7

(1) In 2011, the Company adopted the emerging industry policy of recognizing sales of railcars from the lease fleet which have been owned by the lease fleet for more than one year as a net gain or loss from the disposal of a long-term asset. Proceeds from the sales of railcars owned more than one year at the time of sale were $94.9 million and $17.9 million for the nine months ended September 30, 2012 and 2011, respectively. There is no change in accounting treatment for sales of railcars from the lease fleet which have been owned by the lease fleet for one year or less which continue to be reported in revenues and cost of revenues. Operating profit from sales of railcars owned one year or less at the time of sale was $20.7 million and $7.9 million for the nine months ended September 30, 2012 and 2011, respectively. Prior year reported amounts have been reclassified to conform to this policy.

Trinity Industries, Inc.
Condensed Segment Data
(in millions)
(unaudited)
		Three Months Ended
		September 30,
Revenues:		2012				2011
Rail Group		$	457.9			$	320.9
Construction Products Group			154.3				164.8
Inland Barge Group			166.5				143.2
Energy Equipment Group			135.6				111.6
Railcar Leasing and Management Services Group (1)			159.9				147.4
All Other			24.6				18.0
Eliminations - lease subsidiary			(125.9	)			(87.9	)
Eliminations - other			(35.4	)			(26.9	)
Consolidated Total		$	937.5			$	791.1
		Three Months Ended
		September 30,
Operating profit (loss):		2012				2011
Rail Group		$	35.2			$	18.2
Construction Products Group			12.7				17.8
Inland Barge Group			26.9				26.0
Energy Equipment Group			9.5				(1.9	)
Railcar Leasing and Management Services Group (1)			85.1				64.2
All Other			(2.0	)			(0.3	)
Corporate			(12.4	)			(11.5	)
Eliminations - lease subsidiary			(14.1	)			(8.1	)
Eliminations - other			1.0				1.0
Consolidated Total		$	141.9			$	105.4

(1) In 2011, the Company adopted the emerging industry policy of recognizing sales of railcars from the lease fleet which have been owned by the lease fleet for more than one year as a net gain or loss from the disposal of a long-term asset. There is no change in accounting treatment for sales of railcars from the lease fleet which have been owned by the lease fleet for one year or less which continue to be reported in revenues and cost of revenues. Prior year reported amounts have been reclassified to conform to this policy.

Trinity Industries, Inc.
Condensed Segment Data
(in millions)
(unaudited)
		Nine Months Ended
		September 30,
Revenues:		2012				2011
Rail Group		$	1,441.9			$	821.4
Construction Products Group			466.1				447.7
Inland Barge Group			509.8				398.9
Energy Equipment Group			391.3				347.8
Railcar Leasing and Management Services Group (1)			496.4				395.4
All Other			61.1				45.4
Eliminations - lease subsidiary			(380.8	)			(252.8	)
Eliminations - other			(94.6	)			(70.2	)
Consolidated Total		$	2,891.2			$	2,133.6
		Nine Months Ended
		September 30,
Operating profit (loss):		2012				2011
Rail Group		$	128.3			$	42.9
Construction Products Group			38.7				42.2
Inland Barge Group			93.5				66.8
Energy Equipment Group			9.7				9.8
Railcar Leasing and Management Services Group (1)			228.0				178.6
All Other			(7.1	)			(0.8	)
Corporate			(33.6	)			(30.6	)
Eliminations - lease subsidiary			(37.2	)			(23.3	)
Eliminations - other			(1.1	)			0.7
Consolidated Total		$	419.2			$	286.3

(1) In 2011, the Company adopted the emerging industry policy of recognizing sales of railcars from the lease fleet which have been owned by the lease fleet for more than one year as a net gain or loss from the disposal of a long-term asset. There is no change in accounting treatment for sales of railcars from the lease fleet which have been owned by the lease fleet for one year or less which continue to be reported in revenues and cost of revenues. Prior year reported amounts have been reclassified to conform to this policy.

Trinity Industries, Inc.
Condensed Consolidated Balance Sheets
(in millions)
(unaudited)
		September 30,			December 31,
		2012			2011
Cash and cash equivalents		$	312.2		$	351.1
Receivables, net of allowance			423.5			384.3
Income tax receivable			5.1			1.6
Inventories			691.7			549.9
Restricted cash			234.8			240.3
Net property, plant, and equipment			4,283.7			4,179.5
Goodwill			229.8			225.9
Other assets			238.3			188.4
		$	6,419.1		$	6,121.0
Accounts payable		$	212.6		$	207.4
Accrued liabilities			478.1			421.3
Debt, net of unamortized discount of $90.7 and $99.8			2,978.1			2,974.9
Deferred income			37.0			38.7
Deferred income taxes			543.0			434.7
Other liabilities			83.3			95.7
Stockholders' equity			2,087.0			1,948.3
		$	6,419.1		$	6,121.0

Trinity Industries, Inc.
Additional Balance Sheet Information
(in millions)
(unaudited)
		September 30,				December 31,
		2012				2011
Property, Plant, and Equipment
Corporate/Manufacturing:
Property, plant, and equipment		$	1,278.5			$	1,242.8
Accumulated depreciation			(761.9	)			(732.8	)
			516.6				510.0
Leasing:
Wholly-owned subsidiaries:
Machinery and other			9.6				9.6
Equipment on lease			3,611.4				3,429.3
Accumulated depreciation			(445.7	)			(372.9	)
			3,175.3				3,066.0
TRIP Holdings:
Equipment on lease			1,272.3				1,257.7
Accumulated depreciation			(145.2	)			(122.7	)
			1,127.1				1,135.0
Net deferred profit on railcars sold to the Leasing Group:
Sold to wholly-owned subsidiaries			(352.8	)			(344.5	)
Sold to TRIP Holdings			(182.5	)			(187.0	)
			(535.3	)			(531.5	)
		$	4,283.7			$	4,179.5
Leasing portfolio information:
Portfolio size (number of railcars):
Wholly-owned subsidiaries			56,800				54,595
TRIP Holdings			14,455				14,350
Total fleet			71,255				68,945
Portfolio utilization:
Wholly-owned subsidiaries			99.0	%			99.3	%
TRIP Holdings			99.3	%			99.9	%
Total fleet			99.0	%			99.5	%

Trinity Industries, Inc.
Additional Balance Sheet Information
(in millions)
(unaudited)
		September 30,				December 31,
		2012				2011
Debt
Corporate/Manufacturing - Recourse:
Revolving credit facility		$	—			$	—
Convertible subordinated notes			450.0				450.0
Less: unamortized discount			(90.7	)			(99.8	)
			359.3				350.2
Other			5.1				4.2
			364.4				354.4
Leasing:
Wholly-owned subsidiaries:
Recourse:
Capital lease obligations			46.5				48.6
Term loan			51.4				54.7
			97.9				103.3
Non-recourse:
Secured railcar equipment notes			815.7				842.0
Warehouse facility			385.7				308.5
Promissory notes			445.5				465.5
			1,646.9				1,616.0
TRIP Holdings - Non-recourse:
Senior secured notes			170.0				170.0
Less: Held by Trinity			(108.8	)			(108.8	)
			61.2				61.2
Secured railcar equipment notes			807.7				840.0
			868.9				901.2
		$	2,978.1			$	2,974.9

Trinity Industries, Inc.
Additional Balance Sheet Information
(in millions)
(unaudited)
		September 30,				December 31,
		2012				2011
Leasing Debt Summary
Total Recourse Debt		$	97.9			$	103.3
Total Non-Recourse Debt (1)			2,515.8				2,517.2
		$	2,613.7			$	2,620.5
Total Leasing Debt
Wholly-owned subsidiaries		$	1,744.8			$	1,719.3
TRIP Holdings (1)			868.9		(1)		901.2
		$	2,613.7			$	2,620.5
Equipment on Lease (2)
Wholly-owned subsidiaries		$	3,175.3			$	3,066.0
TRIP Holdings			1,127.1				1,135.0
		$	4,302.4			$	4,201.0
Total Leasing Debt as a % of Equipment on Lease
Wholly-owned subsidiaries			54.9	%			56.1	%
TRIP Holdings			77.1	%			79.4	%
Combined			60.7	%			62.4	%

(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.

		Three Months Ended									Three Months Ended
		September 30, 2012									September 30, 2011
		Income				Average					Income				Average
		(Loss)				Shares		EPS			(Loss)				Shares		EPS
Net income attributable to Trinity Industries, Inc.		$	63.2								$	31.9
Unvested restricted share participation			(2.1	)								(1.0	)
Net income attributable to Trinity Industries, Inc. - basic			61.1			76.5		$	0.80			30.9			77.7		$	0.40
Effect of dilutive securities: Stock options			—			0.2						—			0.2
Net income attributable to Trinity Industries, Inc. - diluted		$	61.1			76.7		$	0.80		$	30.9			77.9		$	0.40
		Nine Months Ended									Nine Months Ended
		September 30, 2012									September 30, 2011
		Income				Average					Income				Average
		(Loss)				Shares		EPS			(Loss)				Shares		EPS
Net income attributable to Trinity Industries, Inc.		$	183.9								$	86.1
Unvested restricted share participation			(6.1	)								(2.9	)
Net income attributable to Trinity Industries, Inc. - basic			177.8			77.3		$	2.30			83.2			77.4		$	1.07
Effect of dilutive securities: Stock options			—			0.2						—			0.3
Net income attributable to Trinity Industries, Inc. - diluted		$	177.8			77.5		$	2.29		$	83.2			77.7		$	1.07

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
		September 30,
		2012			2011
Net income		$	63.1		$	31.6
Add:
Interest expense			47.8			47.9
Provision for income taxes			32.8			21.1
Depreciation and amortization expense			50.1			48.9
Earnings before interest expense, income taxes, and depreciation and amortization expense		$	193.8		$	149.5
		Nine Months Ended
		September 30,
		2012			2011
Net income		$	182.9		$	88.8
Add:
Interest expense			143.6			136.2
Provision for income taxes			98.2			58.3
Depreciation and amortization expense			148.8			144.3
Earnings before interest expense, income taxes, and depreciation and amortization expense		$	573.5		$	427.6

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