This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Trinity Industries, Inc. Reports Strong Fourth Quarter And Full Year 2012 Results

Earnings Outlook

The Company’s earnings guidance for the first quarter of 2013 is between $0.75 and $0.82 per common diluted share compared to $0.66 per common diluted share in the first quarter of 2012. For the full year of 2013, the Company anticipates earnings per common diluted share of between $3.45 and $3.75 compared to full year earnings per common diluted share of $3.19 in 2012. Results for the first 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 of railcars from the leasing portfolio; the amount of profit eliminations due to railcar additions to the Leasing Group; and the impact of weather conditions on businesses within the Construction Products Group.

Conference Call

Trinity will hold a conference call at 11:00 a.m. Eastern on February 21, 2013 to discuss its fourth quarter and full year 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) 220-0120 until 11:59 p.m. Eastern on February 28, 2013.

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 EndedDecember 31,
  2012       2011  
Revenues $ 1,012.9 $ 914.3
Operating costs:
Cost of revenues 800.9 754.4
Selling, engineering, and administrative expenses 64.6 54.5
(Gain)/loss on disposition of property, plant, and equipment:
Net gains on lease fleet sales (11.2 ) (13.1 )
Disposition of flood-damaged property (0.4 ) (17.0 )
Other   0.1     (4.0 )
  854.0     774.8  
Operating profit 158.9 139.5
Interest expense, net 50.7 48.8
Other (income) expense   0.2     (0.1 )
Income before income taxes 108.0 90.8
Provision for income taxes   37.0     33.5  
Net income from continuing operations 71.0 57.3
Net income (loss) from discontinued operations   (0.2 )   (0.4 )
Net income 70.8 56.9
Net income (loss) attributable to noncontrolling interest   (0.5 )   0.8  
Net income attributable to Trinity Industries, Inc. $ 71.3   $ 56.1  
 
Net income attributable to Trinity Industries, Inc. per common share:
Basic
Continuing operations $ 0.90 $ 0.71
Discontinued operations       (0.01 )
$ 0.90   $ 0.70  
Diluted
Continuing operations $ 0.90 $ 0.71
Discontinued operations       (0.01 )
$ 0.90   $ 0.70  
Weighted average number of shares outstanding:
Basic 76.8 77.7
Diluted 76.9 77.9

Proceeds from the sales of railcars from the lease fleet owned more than one year at the time of sale were $31.4 million and $42.7 million for the three months ended December 31, 2012 and 2011, respectively. Operating profit from sales of railcars owned one year or less at the time of sale was $4.1 million and $5.3 million for the three months ended December 31, 2012 and 2011, respectively.

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

 

Trinity Industries, Inc.

Condensed Consolidated Income Statements

(in millions, except per share amounts)
(unaudited)
 
Year EndedDecember 31,
  2012       2011  
Revenues $ 3,811.9 $ 2,938.3
Operating costs:
Cost of revenues 3,051.5 2,357.5
Selling, engineering, and administrative expenses 224.1 194.0
(Gain)/loss on disposition of property, plant, and equipment:
Net gains on lease fleet sales (33.5 ) (16.2 )
Disposition of flood-damaged property (0.4 ) (17.6 )
Other   (4.6 )   (6.2 )
  3,237.1     2,511.5  
Operating profit 574.8 426.8
Interest expense, net 193.2 183.8
Other (income) expense   (4.3 )   4.0  
Income before income taxes 385.9 239.0
Provision for income taxes   134.0     92.2  
Net income from continuing operations 251.9 146.8
Net income (loss) from discontinued operations   1.8     (1.1 )
Net income 253.7 145.7
Net income (loss) attributable to noncontrolling interest   (1.5 )   3.5  
Net income attributable to Trinity Industries, Inc. $ 255.2   $ 142.2  
 
Net income attributable to Trinity Industries, Inc. per common share:
Basic
Continuing operations $ 3.18 $ 1.78
Discontinued operations   0.02     (0.01 )
$ 3.20   $ 1.77  
Diluted
Continuing operations $ 3.17 $ 1.78
Discontinued operations   0.02     (0.01 )
$ 3.19   $ 1.77  
Weighted average number of shares outstanding:
Basic 77.3 77.5
Diluted 77.5 77.8

Proceeds from the sales of railcars from the lease fleet owned more than one year at the time of sale were $126.3 million and $60.6 million for the years ended December 31, 2012 and 2011, respectively. Operating profit from sales of railcars owned one year or less at the time of sale was $24.8 million and $13.2 million for the years ended December 31, 2012 and 2011, respectively.

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

 

Trinity Industries, Inc.

Condensed Segment Data

(in millions)
(unaudited)
 
Three Months EndedDecember 31,
Revenues:   2012       2011  
Rail Group $ 571.1 $ 453.3
Construction Products Group 109.8 115.2
Inland Barge Group 165.4 149.6
Energy Equipment Group 167.3 125.0
Railcar Leasing and Management Services Group 150.7 156.6
All Other 20.3 16.4
Eliminations - lease subsidiary (105.1 ) (72.7 )
Eliminations - other   (66.6 )   (29.1 )
Consolidated Total $ 1,012.9   $ 914.3  
 
Three Months EndedDecember 31,
Operating profit (loss):   2012     2011  
Rail Group $ 70.7 $ 34.4
Construction Products Group 9.4 11.7
Inland Barge Group 31.2 39.6
Energy Equipment Group 8.5 (0.9 )
Railcar Leasing and Management Services Group 72.9 75.9
All Other (3.1 ) (3.0 )
Corporate (17.9 ) (13.0 )
Eliminations - lease subsidiary (13.6 ) (5.0 )
Eliminations - other   0.8     (0.2 )
Consolidated Total $ 158.9   $ 139.5  

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

 

Trinity Industries, Inc.

Condensed Segment Data

(in millions)
(unaudited)
 
Year EndedDecember 31,
Revenues:   2012       2011  
Rail Group $ 2,013.0 $ 1,274.7
Construction Products Group 483.7 453.3
Inland Barge Group 675.2 548.5
Energy Equipment Group 558.6 472.8
Railcar Leasing and Management Services Group 647.1 552.0
All Other 81.4 61.8
Eliminations - lease subsidiary (485.9 ) (325.5 )
Eliminations - other   (161.2 )   (99.3 )
Consolidated Total $ 3,811.9   $ 2,938.3  
 
Year EndedDecember 31,
Operating profit (loss):   2012     2011  
Rail Group $ 199.0 $ 77.3
Construction Products Group 44.8 54.9
Inland Barge Group 124.7 106.4
Energy Equipment Group 18.2 8.9
Railcar Leasing and Management Services Group 300.9 254.5
All Other (10.2 ) (3.8 )
Corporate (51.5 ) (43.6 )
Eliminations - lease subsidiary (50.8 ) (28.3 )
Eliminations - other   (0.3 )   0.5  
Consolidated Total $ 574.8   $ 426.8  

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

   

Trinity Industries, Inc.

Condensed Consolidated Balance Sheets

(in millions)
(unaudited)
 

December 31,2012

December 31,2011

Cash and cash equivalents $ 573.0 $ 351.1
Receivables, net of allowance 390.0 385.9
Inventories 667.7 544.6
Restricted cash 223.2 240.3
Net property, plant, and equipment 4,299.0 4,159.1
Goodwill 240.4 219.5
Assets held for sale and discontinued operations 27.9 32.5
Other assets   248.7   188.0
$ 6,669.9 $ 6,121.0
 
Accounts payable $ 188.2 $ 207.4
Accrued liabilities 583.1 421.3
Debt, net of unamortized discount of $87.5 and $99.8 3,055.0 2,972.2
Deferred income 44.5 38.7
Deferred income taxes 572.4 434.7
Liabilities held for sale and discontinued operations 3.7 2.7
Other liabilities 85.4 95.7
Stockholders' equity   2,137.6   1,948.3
$ 6,669.9 $ 6,121.0

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

   

Trinity Industries, Inc.

Additional Balance Sheet Information

(in millions)
(unaudited)
 

 

December 31,2012

December 31,2011

Property, Plant, and Equipment
Corporate/Manufacturing:
Property, plant, and equipment $ 1,260.1 $ 1,171.7
Accumulated depreciation   (720.8 )   (682.1 )
  539.3     489.6  
Leasing:
Wholly-owned subsidiaries:
Machinery and other 9.6 9.6
Equipment on lease 3,662.6 3,429.3
Accumulated depreciation   (468.4 )   (372.9 )
  3,203.8     3,066.0  
TRIP Holdings:
Equipment on lease 1,272.4 1,257.7
Accumulated depreciation   (153.8 )   (122.7 )
  1,118.6     1,135.0  
Net deferred profit on railcars sold to the Leasing Group:
Sold to wholly-owned subsidiaries (381.8 ) (344.5 )
Sold to TRIP Holdings   (180.9 )   (187.0 )
  (562.7 )   (531.5 )
$ 4,299.0   $ 4,159.1  
Leasing portfolio information:
Portfolio size (number of railcars):
Wholly-owned subsidiaries 57,000 54,595
TRIP Holdings   14,455     14,350  
Total fleet 71,455 68,945
Portfolio utilization:
Wholly-owned subsidiaries 98.4 % 99.3 %
TRIP Holdings 99.2 % 99.9 %
Total fleet 98.6 % 99.5 %

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

   

Trinity Industries, Inc.

Additional Balance Sheet Information

(in millions)
(unaudited)
 

December 31,2012

December 31,2011

Debt
Corporate/Manufacturing - Recourse:
Revolving credit facility $ $
Convertible subordinated notes 450.0 450.0
Less: unamortized discount   (87.5 )   (99.8 )
362.5 350.2
Other   1.2     1.5  
  363.7     351.7  
Leasing:
Wholly-owned subsidiaries:
Recourse:
Capital lease obligations 45.8 48.6
Term loan   48.6     54.7  
  94.4     103.3  
Non-recourse:
Secured railcar equipment notes 1,140.3 842.0
Warehouse facility 173.6 308.5
Promissory notes   424.1     465.5  
  1,738.0     1,616.0  
TRIP Holdings - 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   797.7     840.0  
  858.9     901.2  
$ 3,055.0   $ 2,972.2  

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

   

Trinity Industries, Inc.

Additional Balance Sheet Information

(in millions)
(unaudited)
 

December 31,2012

December 31,2011

Leasing Debt Summary
Total Recourse Debt $ 94.4 $ 103.3
Total Non-Recourse Debt (1)   2,596.9     2,517.2  
$ 2,691.3   $ 2,620.5  
Total Leasing Debt
Wholly-owned subsidiaries $ 1,832.4 $ 1,719.3
TRIP Holdings (1)   858.9     901.2  
$ 2,691.3   $ 2,620.5  
Equipment on Lease (2)
Wholly-owned subsidiaries $ 3,203.8 $ 3,066.0
TRIP Holdings   1,118.6     1,135.0  
$ 4,322.4   $ 4,201.0  
Total Leasing Debt as a % of Equipment on Lease
Wholly-owned subsidiaries 57.2 % 56.1 %
TRIP Holdings 76.8 % 79.4 %
Combined 62.3 % 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. Amounts previously reported have been adjusted to exclude discontinued operations resulting from the expected sale of the Company’s ready-mix concrete operations.

   
Three Months EndedDecember 31, 2012 Three Months EndedDecember 31, 2011

Income(Loss)

 

AverageShares

  EPS

Income(Loss)

 

AverageShares

  EPS
Net income from continuing operations $ 71.0 $ 57.3
Less: net income (loss) from continuing operations attributable to noncontrolling interest   (0.5 )   0.8  
Net income from continuing operations attributable to Trinity Industries, Inc. 71.5 56.5
Unvested restricted share participation   (2.1 )   (1.5 )
Net income from continuing operations attributable to Trinity Industries, Inc. - basic 69.4 76.8 $ 0.90 55.0 77.7 $ 0.71  
Effect of dilutive securities:

Stock options

    0.1     0.2
Net income from continuing operations attributable to Trinity Industries, Inc. - diluted $ 69.4   76.9 $ 0.90 $ 55.0   77.9 $ 0.71  
Net income from discontinued operations, net of taxes $ (0.2 ) $ (0.4 )
Unvested restricted share participation       (0.1 )
Net income from discontinued operations, net of taxes - basic (0.2 ) 76.8 $ (0.5 ) 77.7 $ (0.01 )
Effect of dilutive securities:

Stock options

    0.1     0.2
Net income from discontinued operations, net of taxes - diluted $ (0.2 ) 76.9 $ $ (0.5 ) 77.9 $ (0.01 )
 
Year EndedDecember 31, 2012 Year EndedDecember 31, 2011

Income(Loss)

AverageShares

EPS

Income(Loss)

AverageShares

EPS
Net income from continuing operations $ 251.9 $ 146.8
Less: net income (loss) from continuing operations attributable to noncontrolling interest   (1.5 )   3.5  
Net income from continuing operations attributable to Trinity Industries, Inc. 253.4 143.3
Unvested restricted share participation   (7.7 )   (5.0 )
Net income from continuing operations attributable to Trinity Industries, Inc. - basic 245.7 77.3 $ 3.18 138.3 77.5 $ 1.78  
Effect of dilutive securities:

Stock options

    0.2     0.3
Net income from continuing operations attributable to Trinity Industries, Inc. - diluted $ 245.7   77.5 $ 3.17 $ 138.3   77.8 $ 1.78  
Net income from discontinued operations, net of taxes $ 1.8 $ (1.1 )
Unvested restricted share participation   (0.1 )    
Net income from discontinued operations, net of taxes - basic 1.7 77.3 $ 0.02 (1.1 ) 77.5 $ (0.01 )
Effect of dilutive securities:

Stock options

 

  0.2     0.3
Net income from discontinued operations, net of taxes - diluted $ 1.7   77.5 $ 0.02 $ (1.1 ) 77.8 $ (0.01 )
 

Trinity Industries, Inc. Reconciliation of 2011 Earnings Per Common Diluted Share Adjusted for One-Time Items(in millions)(unaudited)

   

Three Months EndedDecember 31, 2011

Year EndedDecember 31, 2011

Earnings per common diluted share as reported $0.70 $1.77

Less: Per share effect of net gains arising from flood-

related losses at the Company’s barge manufacturing
facilities in Tennessee and Missouri 0.14 0.12
Earnings per common diluted share as adjusted $0.56 $1.65
 

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 EndedDecember 31,
  2012     2011
 
Net income from continuing operations $ 71.0 $ 57.3
Add:
Interest expense 51.1 49.1
Provision for income taxes 37.0 33.5
Depreciation and amortization expense   49.2   47.5
Earnings from continuing operations before interest expense, income taxes, and depreciation and amortization expense $ 208.3 $ 187.4
 
Year EndedDecember 31,
  2012   2011
 
Net income from continuing operations $ 251.9 $ 146.8
Add:
Interest expense 194.7 185.3
Provision for income taxes 134.0 92.2
Depreciation and amortization expense   193.7   187.7
Earnings from continuing operations before interest expense, income taxes, and depreciation and amortization expense $ 774.3 $ 612.0

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

5 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs