Reported both quarterly GAAP and adjusted
earnings from continuing operations of $0.14 per diluted
share
Received orders for 4,335 railcars and
delivered 2,510 railcars in the quarter; backlog of $2.2 billion at
quarter-end
Returned $90 million of capital to
stockholders year-to-date and completed accelerated share
repurchase program
Trinity Industries, Inc. (NYSE:TRN) today announced earnings
results for the second quarter ended June 30, 2022.
Financial and Operational
Highlights
- Quarterly total company revenues of $417 million
- Quarterly income from continuing operations per common diluted
share ("EPS") of $0.14
- Lease fleet utilization of 97.2% and Future Lease Rate
Differential ("FLRD") of positive 14.7% at quarter end
- New railcar orders of 4,335 and railcar deliveries of 2,510;
book-to-bill ratio of 1.7x
- Year-to-date cash flow from continuing operations was a net use
of $61 million, and total free cash flow after investments and
dividends ("Free Cash Flow") was $43 million
2022 Guidance
- Industry deliveries of 40,000 to 50,000 railcars
- Net investment in the lease fleet of $425 million to $475
million, down from $450 million to $550 million
- Manufacturing capital expenditures of $35 million to $45
million
- EPS of $0.90 to $1.10, up from $0.85 to $1.05
- Excludes gains on insurance recoveries and other items outside
of our core business operations
Management Commentary
“Trinity’s second quarter results reflect improvement and
momentum and reinforce our optimism for the back half of the year,”
said Trinity’s Chief Executive Officer and President, Jean Savage.
“The strength of our backlog, as well as rising lease rates and
fleet utilization, are especially encouraging and provide
visibility into our expectations for the full year.”
“In the Railcar Leasing and Management Services Group, our
Future Lease Rate Differential improved to 14.7%, which we continue
to view as a leading indicator of revenue growth. Furthermore, our
lease fleet utilization improved sequentially and year over year to
97.2%.” Ms. Savage continued, “We saw the value of our rail
platform this quarter with strong railcar deliveries for our lease
fleet while creating additional value through RIV and secondary
market transactions. While supply chain and labor issues persist,
we completed a successful quarter in a challenging operating
environment.”
Ms. Savage concluded, “We continue to feel confident about the
second half of the year and expect to see strengthening results
across our business.”
Consolidated Financial
Summary
Three Months Ended
June 30,
2022
2021
Year over Year – Comparison
($ in millions, except per
share amounts)
Revenues
$
416.8
$
293.3
Higher external deliveries in the Rail
Products Group
Operating profit
$
73.0
$
57.8
Higher lease portfolio sales activity and
improved operating performance in the Leasing Group, partially
offset by deliveries of orders taken at the bottom of the cycle in
the Rail Products Group
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
11.7
$
5.1
EBITDA (1)
$
143.6
$
112.6
Effective tax expense (benefit) rate
26.0
%
(50.9
) %
Q2 2021 tax benefit was impacted by excess
tax benefits associated with equity-based compensation
Diluted EPS – GAAP
$
0.14
$
0.05
Diluted EPS – Adjusted (1)
$
0.14
$
0.08
Six Months Ended
June 30,
2022
2021
Year over Year – Comparison
($ in millions)
Net cash provided by (used in) operating
activities – continuing operations
$
(61.3
)
$
324.9
2022 impacted by cyclical shifts in
anticipation of higher volumes of railcar deliveries in future
periods and continued supply chain challenges
Free Cash Flow (1)
$
42.5
$
351.8
Q2 2021 was impacted by timing difference
of debt proceeds issued for financing lease fleet equity
investment
Capital expenditures – leasing
$
414.1
$
251.7
Returns of capital to stockholders
$
89.6
$
375.0
Q2 2021 included a privately negotiated
repurchase agreement totaling $222.5 million
(1)
Non-GAAP financial measure. See the
Reconciliations of Non-GAAP Measures section within this Press
Release for a reconciliation to the most directly comparable GAAP
measure and why management believes this measure is useful to
management and investors.
Additional Business
Items
- Total committed liquidity of $420 million as of June 30, 2022
in anticipation of higher volumes of railcar deliveries in future
periods, as well as continued supply chain challenges.
- In April 2022, Trinity Rail Leasing 2022 LLC, a wholly-owned
subsidiary of the Company, issued $245 million of Series 2022-1
Green Secured Railcar Equipment Notes (the "TRL-2022 Notes"). The
TRL-2022 Notes bear interest at a fixed rate of 4.55% and have a
stated final maturity date of 2052. Net proceeds received from the
TRL-2022 Notes were used to repay borrowings under TILC's secured
warehouse credit facility and for general corporate purposes.
- During the quarter, Trinity repurchased approximately $50
million of shares, which included $25 million as part of the final
settlement of our $125 million accelerated share repurchase
agreement and $25 million in the open market.
- In May 2022, Tribute Rail LLC, a partially-owned subsidiary of
the Company, issued $327 million of its Series 2022-1 Green Secured
Railcar Equipment Notes (the "Tribute Rail Notes"). The Tribute
Rail Notes bear interest at an all-in interest rate of 4.88% and
have a stated final maturity date of 2052. Net proceeds received
from the issuance of these notes were used to redeem TRIP Railcar
Co. LLC's existing term loan agreement, of which $319 million was
outstanding at the redemption date.
Business Group Summary
Three Months Ended
June 30,
2022
2021
Year over Year – Comparison
($ in millions)
Railcar Leasing and Management Services
Group
Leasing and management revenues
$
195.3
$
185.1
Higher utilization, increased lease fleet
size and improved renewal rates, partially offset by the effect of
net lease fleet investment activities
Leasing and management operating
profit
$
78.6
$
70.0
Higher utilization, increased lease fleet
size, and lower fleet operating costs, partially offset by
increased depreciation
Operating profit on lease portfolio
sales
$
26.9
$
11.1
Increased lease fleet portfolio sales
Fleet utilization (1)
97.2
%
94.3
%
Future Lease Rate Differential ("FLRD")
(2)
+14.7 %
(10.0
) %
Improvement in current market lease rates
compared to the prior year period
Owned lease fleet (in units) (1)
110,560
108,635
Growth in the lease fleet, partially
offset by initial sale to new RIV partner in Q3 2021
Investor-owned lease fleet (in units)
30,115
26,490
Initial sale to new RIV partner in Q3
2021
Rail Products Group
Revenues
$
430.6
$
261.8
Higher volume of deliveries and price
escalation
Revenues eliminations – Lease
subsidiary
$
(208.9
)
$
(151.0
)
Operating profit
$
13.7
$
3.2
Higher deliveries, partially offset by
higher input costs and operational inefficiencies
Operating profit eliminations – Lease
subsidiary
$
(20.3
)
$
(3.0
)
Operating profit margin
3.2
%
1.2
%
New railcars:
Deliveries (in units)
2,510
1,765
Orders (in units)
4,335
4,570
Order value
$
524.4
$
372.6
Product mix and price escalation
Backlog value
$
2,194.7
$
1,177.7
Sustainable railcar conversions:
Deliveries (in units)
485
120
Backlog (in units)
2,350
1,385
Backlog value
$
188.6
$
118.4
Corporate and other
Selling, engineering, and administrative
expenses
$
25.4
$
24.5
Gains on dispositions of property
$
(0.3
)
$
(0.6
)
June 30, 2022
December 31, 2021
Loan-to-value ratio
Wholly-owned subsidiaries, including
corporate revolving credit facility
67.3
%
62.3
%
Increased leverage associated with leased
assets, partially offset by amortization of debt on encumbered
assets
(1)
Includes wholly-owned railcars,
partially-owned railcars, and railcars under leased-in
arrangements.
(2)
FLRD calculates the implied change in
revenue for railcar leases expiring over the next four quarters,
assuming they were renewed at the most recent quarterly transacted
lease rates for each railcar type.
Conference Call
Trinity will hold a conference call at 8:30 a.m. Eastern on July
27, 2022 to discuss its second quarter results. To listen to the
call, please visit the Investor Relations section of the Company's
website at www.trin.net and access the Events & Presentations
webpage, or the live call can be accessed at 1-888-317-6003 with
the conference passcode "3880180". Please call at least 10 minutes
in advance to ensure a timely connection. An audio replay may be
accessed through the Company’s website or by dialing 1-877-344-7529
with passcode "1988387" until 11:59 p.m. Eastern on August 3,
2022.
Additionally, the Company will provide Supplemental Materials to
accompany the earnings conference call. The materials will be
accessible both within the webcast and on Trinity's Investor
Relations website under the Events and Presentations portion of the
site along with the Second Quarter Earnings Call event weblink.
Non-GAAP Financial
Measures
We have included financial measures compiled in accordance with
generally accepted accounting principles ("GAAP") and certain
non-GAAP measures in this earnings press release to provide
management and investors with additional information regarding our
financial results. Non-GAAP measures should not be considered in
isolation or as a substitute for our reporting results prepared in
accordance with GAAP and, as calculated, may not be comparable to
other similarly titled measures for other companies. For each
non-GAAP financial measure, a reconciliation to the most comparable
GAAP measure has been included in the accompanying tables. When
forward-looking non-GAAP measures are provided, quantitative
reconciliations to the most directly comparable GAAP measures are
not provided because management cannot, without unreasonable
effort, predict the timing and amounts of certain items included in
the computations of each of these measures. These factors include,
but are not limited to: the product mix of expected railcar
deliveries; the timing and amount of significant transactions and
investments, such as lease portfolio sales, capital expenditures,
and returns of capital to stockholders; and the amount and timing
of certain other items outside the normal course of our core
business operations, such as restructuring activities and the
potential financial and operational impacts of the COVID-19
pandemic.
About Trinity Industries
Trinity Industries, Inc., headquartered in Dallas, Texas, owns
businesses that are leading providers of rail transportation
products and services in North America. Our businesses market their
railcar products and services under the trade name TrinityRail®.
The TrinityRail platform provides railcar leasing and management
services, as well as railcar manufacturing, maintenance and
modifications. Trinity reports its financial results in two
reportable segments: the Railcar Leasing and Management Services
Group and the Rail Products 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,
including, but not limited to, future financial and operating
performance, future opportunities and any other statements
regarding events or developments that Trinity believes or
anticipates will or may occur in the future, including the
potential financial and operational impacts of the COVID-19
pandemic. Trinity uses the words “anticipates,” “assumes,”
“believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,”
“will,” “should,” “guidance,” “projected,” “outlook,” and similar
expressions to identify these forward-looking statements.
Forward-looking statements speak only as of the date of this
release, and Trinity expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein to reflect any change in
Trinity’s expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based,
except as required by federal securities laws. Forward-looking
statements involve risks and uncertainties that could cause actual
results to differ materially from historical experience or our
present expectations, including but not limited to risks and
uncertainties regarding economic, competitive, governmental, and
technological factors affecting Trinity’s operations, markets,
products, services and prices, and such forward-looking statements
are not guarantees of future performance. 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 Trinity’s Annual
Report on Form 10-K for the most recent fiscal year, as may be
revised and updated by Trinity’s Quarterly Reports on Form 10-Q,
and Trinity’s Current Reports on Form 8-K.
Trinity Industries, Inc.
Condensed Consolidated Statements of
Operations
(in millions, except per share
amounts)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2022
2021
2022
2021
Revenues
$
416.8
$
293.3
$
889.5
$
624.0
Operating costs:
Cost of revenues
325.6
202.1
724.1
448.4
Selling, engineering, and administrative
expenses
45.0
46.2
89.7
90.9
Gains on dispositions of property:
Lease portfolio sales
26.9
11.1
38.7
12.8
Other
0.9
1.0
14.4
10.8
Restructuring activities, net
1.0
(0.7
)
1.0
(1.0
)
343.8
235.5
761.7
514.7
Operating profit
73.0
57.8
127.8
109.3
Interest expense, net
49.7
51.0
93.2
102.3
Loss on extinguishment of debt
1.5
11.7
1.5
11.7
Other, net
(0.5
)
0.8
(2.1
)
2.0
Income (loss) from continuing operations
before income taxes
22.3
(5.7
)
35.2
(6.7
)
Provision (benefit) for income taxes:
Current
2.0
0.5
3.8
5.2
Deferred
3.8
(3.4
)
5.0
(4.1
)
5.8
(2.9
)
8.8
1.1
Income (loss) from continuing
operations
16.5
(2.8
)
26.4
(7.8
)
Income (loss) from discontinued
operations, net of income taxes
(3.4
)
7.6
(10.3
)
13.9
Loss on sale of discontinued operations,
net of income taxes
(4.6
)
—
(5.7
)
—
Net income
8.5
4.8
10.4
6.1
Net income (loss) attributable to
noncontrolling interest
4.8
(7.9
)
7.4
(9.9
)
Net income attributable to Trinity
Industries, Inc.
$
3.7
$
12.7
$
3.0
$
16.0
Basic earnings per common share:
Income from continuing operations
$
0.14
$
0.05
$
0.23
$
0.02
Income (loss) from discontinued
operations
(0.10
)
0.07
(0.19
)
0.13
Basic net income attributable to Trinity
Industries, Inc.
$
0.04
$
0.12
$
0.04
$
0.15
Diluted earnings per common share:
Income from continuing operations
$
0.14
$
0.05
$
0.23
$
0.02
Income (loss) from discontinued
operations
(0.10
)
0.07
(0.19
)
0.13
Diluted net income attributable to Trinity
Industries, Inc.
$
0.04
$
0.12
$
0.04
$
0.15
Weighted average number of shares
outstanding:
Basic
82.4
102.8
82.7
106.4
Diluted
84.4
105.1
84.9
108.9
Trinity has certain unvested restricted stock awards that
participate in dividends on a nonforfeitable basis and are
therefore considered to be participating securities. Consequently,
diluted net income attributable to Trinity Industries, Inc. per
common share is calculated under both the two-class method and the
treasury stock method, and the more dilutive of the two
calculations is presented.
Trinity Industries, Inc.
Condensed Consolidated Balance
Sheets
(in millions)
(unaudited)
June 30, 2022
December 31, 2021
ASSETS
Cash and cash equivalents
$
49.7
$
167.3
Receivables, net of allowance
270.2
227.6
Income tax receivable
8.5
5.4
Inventories
630.7
432.9
Restricted cash
256.8
135.1
Property, plant, and equipment, net:
Manufacturing/Corporate
346.5
349.3
Leasing:
Wholly-owned subsidiaries
5,844.4
5,706.1
Partially-owned subsidiaries
1,534.8
1,570.6
Deferred profit on railcars sold to the
Leasing Group
(781.6
)
(779.1
)
6,944.1
6,846.9
Goodwill
159.2
154.2
Other assets
305.6
266.5
Total assets
$
8,624.8
$
8,235.9
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable
$
285.4
$
206.4
Accrued liabilities
283.9
307.4
Debt:
Recourse (1)
518.9
398.7
Non-recourse:
Wholly-owned subsidiaries
3,813.6
3,555.8
Partially-owned subsidiaries
1,206.6
1,216.1
5,539.1
5,170.6
Deferred income taxes
1,115.3
1,106.8
Other liabilities
144.9
147.9
Stockholders' equity:
Trinity Industries, Inc.
997.6
1,029.8
Noncontrolling interest
258.6
267.0
1,256.2
1,296.8
Total liabilities and stockholders'
equity
$
8,624.8
$
8,235.9
(1) Recourse debt as of June 30, 2022
includes $120.0 million outstanding associated with our corporate
revolving credit facility.
Trinity Industries, Inc.
Condensed Consolidated Statements of
Cash Flows
(in millions)
(unaudited)
Six Months Ended
June 30,
2022
2021
Operating activities:
Net cash provided by (used in) operating
activities – continuing operations
$
(61.3
)
$
324.9
Net cash provided by (used in) operating
activities – discontinued operations
(12.0
)
9.8
Net cash provided by (used in) operating
activities
(73.3
)
334.7
Investing activities:
Proceeds from lease portfolio sales
215.2
88.8
Proceeds from dispositions of property and
other assets
23.8
24.0
Capital expenditures – leasing
(414.1
)
(251.7
)
Capital expenditures – manufacturing and
other
(18.8
)
(14.3
)
Acquisitions, net of cash acquired
(9.4
)
(16.6
)
Proceeds from insurance recoveries
4.8
—
Other
—
(0.1
)
Net cash used in investing activities –
continuing operations
(198.5
)
(169.9
)
Payments related to sale of discontinued
operations
(2.7
)
—
Net cash used in investing activities –
discontinued operations
—
(3.1
)
Net cash used in investing activities
(201.2
)
(173.0
)
Financing activities:
Net proceeds from (repayments of) debt
360.8
251.5
Shares repurchased
(22.4
)
(329.4
)
Dividends paid to common shareholders
(39.3
)
(47.4
)
Other
(20.5
)
(9.1
)
Net cash provided by (used in) financing
activities
278.6
(134.4
)
Net increase in cash, cash equivalents,
and restricted cash
4.1
27.3
Cash, cash equivalents, and restricted
cash at beginning of period
302.4
228.4
Cash, cash equivalents, and restricted
cash at end of period
$
306.5
$
255.7
Trinity Industries, Inc.
Reconciliations of Non-GAAP Measures (in millions, except
per share amounts) (unaudited)
Adjusted Operating Results
We have supplemented the presentation of our reported GAAP
operating profit, income (loss) from continuing operations before
income taxes, provision (benefit) for income taxes, income (loss)
from continuing operations, net income from continuing operations
attributable to Trinity Industries, Inc., and diluted income from
continuing operations per common share attributable to Trinity
Industries, Inc. with non-GAAP measures that adjust the GAAP
measures to exclude the impact of gains on dispositions of other
property, restructuring activities, interest expense, net, loss on
extinguishment of debt, pension plan settlement, the income tax
effects of the CARES Act, and certain other transactions or events
(as applicable). These non-GAAP measures are derived from amounts
included in our GAAP financial statements and are reconciled to the
most directly comparable GAAP financial measures in the tables
below. Management believes that these measures are useful to both
management and investors for analyzing the performance of our
business without the impact of certain items that are not
indicative of our normal business operations. Non-GAAP measures
should not be considered in isolation or as a substitute for our
reporting results prepared in accordance with GAAP and, as
calculated, may not be comparable to other similarly titled
measures for other companies.
Three Months Ended June 30,
2022
GAAP
Restructuring activities,
net
Interest expense, net
(1)
Adjusted
Operating profit
$
73.0
$
1.0
$
—
$
74.0
Income (loss) from continuing operations
before income taxes
$
22.3
$
1.0
$
(0.4
)
$
22.9
Provision (benefit) for income taxes
$
5.8
$
0.3
$
(0.1
)
$
6.0
Income (loss) from continuing
operations
$
16.5
$
0.7
$
(0.3
)
$
16.9
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
11.7
$
0.7
$
(0.3
)
$
12.1
Diluted weighted average shares
outstanding
84.4
84.4
Diluted income from continuing operations
per common share attributable to Trinity Industries, Inc.
$
0.14
$
0.14
Six Months Ended June 30,
2022
GAAP
Gains on dispositions of
property – other (2)
Restructuring activities,
net
Interest expense, net
(1)
Adjusted
Operating profit
$
127.8
$
(6.4
)
$
1.0
$
—
$
122.4
Income (loss) from continuing operations
before income taxes
$
35.2
$
(6.4
)
$
1.0
$
(0.7
)
$
29.1
Provision (benefit) for income taxes
$
8.8
$
(1.6
)
$
0.3
$
(0.2
)
$
7.3
Income (loss) from continuing
operations
$
26.4
$
(4.8
)
$
0.7
$
(0.5
)
$
21.8
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
19.0
$
(4.8
)
$
0.7
$
(0.5
)
$
14.4
Diluted weighted average shares
outstanding
84.9
84.9
Diluted income from continuing operations
per common share attributable to Trinity Industries, Inc.
$
0.23
$
0.17
Three Months Ended June 30,
2021
GAAP
Restructuring activities, net
(3)
Loss on extinguishment of debt
– Controlling Interest (3)(4)
Loss on extinguishment of debt
– Noncontrolling Interest (5)
Pension plan settlement
(3)
Income tax effect of CARES
Act
Adjusted
Operating profit
$
57.8
$
(0.7
)
$
—
$
—
$
—
$
—
$
57.1
Income (loss) from continuing operations
before income taxes
$
(5.7
)
$
(0.7
)
$
4.6
$
7.1
$
1.0
$
—
$
6.3
Provision (benefit) for income taxes
$
(2.9
)
$
(0.2
)
$
1.0
$
—
$
0.2
$
0.4
$
(1.5
)
Income (loss) from continuing
operations
$
(2.8
)
$
(0.5
)
$
3.6
$
7.1
$
0.8
$
(0.4
)
$
7.8
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
5.1
$
(0.5
)
$
3.6
$
—
$
0.8
$
(0.4
)
$
8.6
Diluted weighted average shares
outstanding
105.1
105.1
Diluted income from continuing operations
per common share attributable to Trinity Industries, Inc.
$
0.05
$
0.08
Six Months Ended June 30,
2021
GAAP
Restructuring activities, net
(3)
Loss on extinguishment of debt
– Controlling Interest (3)(4)
Loss on extinguishment of debt
– Noncontrolling Interest (5)
Pension plan settlement
(3)
Income tax effect of CARES
Act
Adjusted
Operating profit
$
109.3
$
(1.0
)
$
—
$
—
$
—
$
—
$
108.3
Income (loss) from continuing operations
before income taxes
$
(6.7
)
$
(1.0
)
$
4.6
$
7.1
$
2.2
$
—
$
6.2
Provision (benefit) for income taxes
$
1.1
$
(0.3
)
$
1.0
$
—
$
0.5
$
(3.4
)
$
(1.1
)
Income (loss) from continuing
operations
$
(7.8
)
$
(0.7
)
$
3.6
$
7.1
$
1.7
$
3.4
$
7.3
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
2.1
$
(0.7
)
$
3.6
$
—
$
1.7
$
3.4
$
10.1
Diluted weighted average shares
outstanding
108.9
108.9
Diluted income from continuing operations
per common share attributable to Trinity Industries, Inc.
$
0.02
$
0.09
(1)
Represents interest income accretion
related to a seller-financing agreement associated with the sale of
certain non-operating assets.
(2)
Represents insurance recoveries in excess
of net book value for assets damaged by a tornado at the Company’s
rail maintenance facility in Cartersville, Georgia in the first
quarter of 2021.
(3)
The effective tax rate for restructuring
activities, the loss on extinguishment of debt, and pension plan
settlement is before consideration of the CARES Act.
(4)
Excludes $7.1 million of loss on
extinguishment of debt associated with the noncontrolling interest
recorded in the second quarter of 2021.
(5)
Represents the portion of loss on
extinguishment of debt attributable to the noncontrolling interest,
for which Trinity does not provide income taxes.
Free Cash Flow
Total Free Cash Flow After Investments and Dividends ("Free Cash
Flow") is a non-GAAP financial measure. We believe Free Cash Flow
is useful to both management and investors as it provides a
relevant measure of liquidity and a useful basis for assessing our
ability to fund our operations and repay our debt. Free Cash Flow
is reconciled to net cash provided by (used in) operating
activities from continuing operations, the most directly comparable
GAAP financial measure, in the following table. Free Cash Flow is
defined as net cash provided by (used in) operating activities from
continuing operations as computed in accordance with GAAP, plus
cash proceeds from lease portfolio sales, less capital expenditures
for manufacturing, dividends paid, and Equity CapEx for leased
railcars. Equity CapEx for leased railcars is defined as leasing
capital expenditures, adjusted to exclude net proceeds from
(repayments of) debt. Non-GAAP measures should not be considered in
isolation or as a substitute for our reporting results prepared in
accordance with GAAP and, as calculated, may not be comparable to
other similarly titled measures for other companies.
Six Months Ended
June 30,
2022
2021
Net cash provided by (used in) operating
activities – continuing operations
$
(61.3
)
$
324.9
Proceeds from lease portfolio sales
215.2
88.8
Adjusted Net Cash Provided by Operating
Activities
153.9
413.7
Capital expenditures – manufacturing and
other
(18.8
)
(14.3
)
Dividends paid to common stockholders
(39.3
)
(47.4
)
Free Cash Flow (before Capital
expenditures – leasing)
95.8
352.0
Equity CapEx for leased railcars
(53.3
)
(0.2
)
Total Free Cash Flow After Investments and
Dividends
$
42.5
$
351.8
Capital expenditures – leasing
$
414.1
$
251.7
Less:
Payments to retire debt
(833.3
)
(1,925.2
)
Proceeds from issuance of debt
1,194.1
2,176.7
Net proceeds from (repayments of) debt
360.8
251.5
Equity CapEx for leased railcars
$
53.3
$
0.2
EBITDA and Adjusted EBITDA
“EBITDA” is defined as income (loss) from continuing operations
plus interest expense, income taxes, and depreciation and
amortization expense. Adjusted EBITDA is defined as EBITDA plus
gains on dispositions of other property, restructuring activities,
interest income, loss on extinguishment of debt, and pension plan
settlement. EBITDA and Adjusted EBITDA are non-GAAP financial
measures; however, the amounts included in these calculations are
derived from amounts included in our GAAP financial statements.
EBITDA and Adjusted EBITDA are reconciled to net income, the most
directly comparable GAAP financial measure, in the following table.
This information is provided to assist management and investors in
making meaningful comparisons of our operating performance between
periods. We believe EBITDA is a useful measure for analyzing the
performance of our business. We also believe that EBITDA is
commonly reported and widely used by investors and other interested
parties as a measure of a company’s operating performance and debt
servicing ability because it assists in comparing performance on a
consistent basis without regard to capital structure, depreciation
or amortization (which can vary significantly depending on many
factors). EBITDA and Adjusted EBITDA should not be considered as
alternatives to net income as indicators of our operating
performance, or as alternatives to operating cash flows as measures
of liquidity. Non-GAAP measures should not be considered in
isolation or as a substitute for our reporting results prepared in
accordance with GAAP and, as calculated, may not be comparable to
other similarly titled measures for other companies.
Three Months Ended
June 30,
Six Months Ended
June 30,
2022
2021
2022
2021
Net income
$
8.5
$
4.8
$
10.4
$
6.1
Less: Income (loss) from discontinued
operations, net of income taxes
(3.4
)
7.6
(10.3
)
13.9
Less: Loss on sale of discontinued
operations, net of income taxes
(4.6
)
—
(5.7
)
—
Income (loss) from continuing
operations
$
16.5
$
(2.8
)
$
26.4
$
(7.8
)
Interest expense
52.0
51.1
96.1
102.5
Provision (benefit) for income taxes
5.8
(2.9
)
8.8
1.1
Depreciation and amortization expense
69.3
67.2
136.2
131.8
EBITDA
$
143.6
$
112.6
$
267.5
$
227.6
Gains on dispositions of property –
other
—
—
(6.4
)
—
Restructuring activities, net
1.0
(0.7
)
1.0
(1.0
)
Interest income
(0.4
)
—
(0.7
)
—
Loss on extinguishment of debt
—
11.7
—
11.7
Pension plan settlement
—
1.0
—
2.2
Adjusted EBITDA
$
144.2
$
124.6
$
261.4
$
240.5
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220727005196/en/
Investor Contact: Leigh Anne Mann Vice President,
Investor Relations Trinity Industries, Inc. (Investors)
214/631-4420
Media Contact: Jack L. Todd Vice President, Public
Affairs Trinity Industries, Inc. (Media Line) 214/589-8909
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