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Trinity Industries, Inc. Announces Third Quarter Results Reporting Highest Quarterly Net Income And EPS In The Company's History

(1) Excludes 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.

Condensed Consolidated Cash Flow Statements

(in millions)

(unaudited)

 
Nine Months Ended September 30,
2013   2012
Operating activities:
Net income $ 273.1 $ 182.9
Adjustments to reconcile net income to net cash provided by operating activities:
Income from discontinued operations (5.9 ) (2.0 )
Depreciation and amortization 156.2 144.5
Net gains on sales of railcars owned more than one year at the time of sale (9.6 ) (22.3 )
Other 4.9 124.6
Changes in assets and liabilities:
(Increase) decrease in receivables (112.3 ) (38.5 )
(Increase) decrease in inventories (86.0 ) (141.0 )
Increase (decrease) in accounts payable 19.7 4.4
Increase (decrease) in accrued liabilities 123.8 62.8
Other   10.8     (63.3 )
Net cash provided by operating activities   374.7     252.1  
Investing activities:
Proceeds from sales of railcars owned more than one year at the time of sale 59.3 94.9
Proceeds from disposition of property, plant, and equipment 1.1 15.7
Capital expenditures - leasing, net of sold railcars owned one year or less with a net cost of $15.4 and $79.8 (455.5 ) (266.3 )
Capital expenditures - manufacturing and other (91.2 ) (64.6 )
Other   (142.2 )   2.7  
Net cash required by investing activities   (628.5 )   (217.6 )
Financing activities:
Payments to retire debt (227.5 ) (122.4 )
Proceeds from issuance of debt 175.4 115.1
Shares repurchased (71.1 ) (45.2 )
Dividends paid to common shareholders (27.5 ) (23.1 )
Proceeds from sale of interests in partially-owned leasing subsidiaries 296.7
Repurchase of noncontrolling interest (84.0 )
Contributions from noncontrolling interest 50.0
Distributions to noncontrolling interest (3.3 )
Other   (25.3 )   2.2  
Net cash provided (required) by financing activities   83.4     (73.4 )
Net decrease in cash and cash equivalents (170.4 ) (38.9 )
Cash and cash equivalents at beginning of period   573.0     351.1  
Cash and cash equivalents at end of period $ 402.6   $ 312.2  
 
 

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 September 30, 2013 Three Months Ended September 30, 2012

Income(Loss)

   

AverageShares

    EPS

Income(Loss)

   

AverageShares

    EPS
Net income from continuing operations $ 105.8 $ 62.4
Less: net income (loss) from continuing operations attributable to noncontrolling interest   6.5     (0.1 )
Net income from continuing operations attributable to Trinity Industries, Inc. 99.3 62.5
Unvested restricted share participation   (3.3 )   (2.0 )
Net income from continuing operations attributable to Trinity Industries, Inc. - basic 96.0 76.1 $ 1.26 60.5 76.5 $ 0.79
Effect of dilutive securities:
Stock options     0.1     0.2
Net income from continuing operations attributable to Trinity Industries, Inc. - diluted $ 96.0   76.2 $ 1.26 $ 60.5   76.7 $ 0.79
Net income (loss) from discontinued operations, net of taxes $ 0.3 $ 0.7
Unvested restricted share participation        
Net income (loss) from discontinued operations, net of taxes - basic 0.3 76.1 $ 0.7 76.5 $ 0.01
Effect of dilutive securities:
Stock options     0.1     0.2
Net income (loss) from discontinued operations, net of taxes - diluted $ 0.3   76.2 $ $ 0.7   76.7 $ 0.01
 
Nine Months Ended September 30, 2013 Nine Months Ended September 30, 2012

Income(Loss)

AverageShares

EPS

Income(Loss)

AverageShares

EPS
Net income from continuing operations $ 267.2 $ 180.9
Less: net income (loss) from continuing operations attributable to noncontrolling interest   10.4     (1.0 )
Net income from continuing operations attributable to Trinity Industries, Inc. 256.8 181.9
Unvested restricted share participation   (8.2 )   (6.0 )
Net income from continuing operations attributable to Trinity Industries, Inc. - basic 248.6 76.7 $ 3.24 175.9 77.3 $ 2.28
Effect of dilutive securities:
Stock options     0.1     0.2
Net income from continuing operations attributable to Trinity Industries, Inc. - diluted $ 248.6   76.8 $ 3.24 $ 175.9   77.5 $ 2.27
Net income (loss) from discontinued operations, net of taxes $ 5.9 $ 2.0
Unvested restricted share participation   (0.2 )   (0.1 )
Net income (loss) from discontinued operations, net of taxes - basic 5.7 76.7 $ 0.07 1.9 77.3 $ 0.02
Effect of dilutive securities:
Stock options     0.1     0.2
Net income (loss) from discontinued operations, net of taxes - diluted $ 5.7   76.8 $ 0.07 $ 1.9   77.5 $ 0.02
 
 

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,
2013   2012
 
Net income from continuing operations $ 105.8 $ 62.4
Add:
Interest expense 45.8 47.8
Provision for income taxes 55.1 32.3
Depreciation and amortization expense   53.8   48.7

Earnings from continuing operations before interest expense,income taxes, and depreciation and amortization expense

$ 260.5 $ 191.2
 
Nine Months Ended September 30,
2013 2012
 
Net income from continuing operations $ 267.2 $ 180.9
Add:
Interest expense 141.5 143.6
Provision for income taxes 143.5 97.0
Depreciation and amortization expense   156.2   144.5

Earnings from continuing operations before interest expense,income taxes, and depreciation and amortization expense

$ 708.4 $ 566.0
 

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

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