Reports quarterly GAAP and adjusted earnings
from continuing operations of $0.35 and $0.34 per diluted share,
respectively
Received orders for 19,500 railcars,
including multi-year 15,000 railcar order; backlog of $4.1 billion
at quarter-end
Delivered 3,935 railcars in the quarter,
driving book-to-bill ratio of 5.0x
Returned $123 million of capital to
stockholders year-to-date
Trinity Industries, Inc. (NYSE:TRN) today announced earnings
results for the third quarter ended September 30, 2022.
Financial and Operational
Highlights
- Lease fleet utilization of 97.9% and Future Lease Rate
Differential ("FLRD") of positive 11.0% at quarter end
- New railcar orders of 19,500 and railcar deliveries of 3,935;
book-to-bill ratio of 5.0x
- Quarterly total company revenues of $497 million; quarterly
income from continuing operations per common diluted share ("EPS")
of $0.35
- Completed $254 million railcar sale to Wafra Inc. ("Wafra") in
the quarter, recorded a gain of $25 million
2022 Guidance
- Industry deliveries of 40,000 to 50,000 railcars
- Net investment in the lease fleet of $250 million to $300
million
- Manufacturing capital expenditures of $35 million to $45
million
- EPS of $0.90 to $1.10
- Excludes gains on insurance recoveries and other items outside
of our core business operations
Management Commentary
“Our third quarter results once again show progress and
improvement in our business,” said Trinity’s Chief Executive
Officer and President, Jean Savage. “We continue to believe we will
perform well in the coming years given our robust backlog and the
favorable re-pricing environment for lease rates.”
“In the Railcar Leasing and Management Services Group, our
Future Lease Rate Differential remained strong at 11.0% and
utilization improved to 97.9%, setting up revenue growth in coming
quarters.” Ms. Savage continued, “We completed our second portfolio
sale to Wafra in the quarter, and this transaction reinforced our
view of railcar investment vehicles as a dynamic platform to
originate leases that are attractive to the market while moderating
our fleet investment.”
“In the Rail Products Group, we have increasing conviction in
strong railcar demand persisting in 2023 based on tighter industry
supply and our impressive backlog of $4.1 billion bolstered by the
15,000 multi-year railcar order received in the quarter.
Furthermore, along with increased deliveries, we reported revenue
and margin growth again this quarter, indicating our momentum in an
improving market and pricing environment for railcars.”
Ms. Savage concluded, “We continue to be enthusiastic about our
business, and expect a solid fourth quarter to close the year with
strong momentum and visibility for 2023.”
Consolidated Financial
Summary
Three Months Ended
September 30,
2022
2021
Year over Year – Comparison
($ in millions, except per
share amounts)
Revenues
$
496.6
$
419.8
Higher volume of external deliveries and
improved pricing in the Rail Products Group
Operating profit
$
92.7
$
78.3
Higher deliveries and improved pricing in
the Rail Products Group, partially offset by higher fleet operating
costs and increased depreciation in the Leasing Group
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
29.2
$
21.6
EBITDA (1)
$
164.3
$
147.7
Effective tax expense rate
22.5
%
24.6
%
Diluted EPS – GAAP
$
0.35
$
0.22
Primarily improved operating results and
the impact of lower diluted weighted average shares outstanding
Diluted EPS – Adjusted (1)
$
0.34
$
0.18
Nine Months Ended
September 30,
2022
2021
Year over Year – Comparison
(in millions)
Net cash provided by (used in) operating
activities – continuing operations
$
(52.6
)
$
418.8
2022 impacted by cyclical shifts in
anticipation of higher volumes of railcar deliveries in future
periods and continued supply chain challenges. 2021 benefited from
the collection of $248 million in income tax refunds.
Free Cash Flow (1)
$
0.1
$
510.9
Capital expenditures – leasing
$
691.1
$
363.9
Returns of capital to stockholders
$
122.7
$
473.2
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
- In the third quarter of 2022, we entered into a new long-term
railcar supply agreement with GATX Corporation (“GATX”) to deliver
a mix of 15,000 newly built tank and freight railcars over a
six-year period. Our ending backlog at September 30, 2022 includes
15,000 railcars valued at approximately $1.8 billion associated
with this agreement.
- In August 2022, Trinity Industries Leasing Company ("TILC") and
certain of its subsidiaries sold to Signal Rail Holdings LLC
(“Signal Rail”) a second portfolio comprised of 2,678 railcars and
related leases for an aggregate sales price of approximately $254
million. TILC recognized a gain of approximately $25 million on the
sale. Signal Rail is a joint venture between TILC and certain funds
managed by Wafra.
- Total committed liquidity of $465 million as of September 30,
2022.
- During the quarter, Trinity repurchased approximately $14
million of shares in the open market, with a remaining
authorization of $34 million as of quarter-end.
Business Group Summary
Three Months Ended
September 30,
2022
2021
Year over Year – Comparison
($ in millions)
Railcar Leasing and Management Services
Group
Leasing and management revenues
$
194.8
$
185.5
Higher utilization, improved renewal
rates, and the effect of net lease fleet investment activities
Leasing and management operating
profit
$
73.6
$
76.4
Higher fleet operating costs and increased
depreciation, partially offset by higher utilization on a larger
lease fleet
Operating profit on lease portfolio
sales
$
34.3
$
32.9
Fleet utilization (1)
97.9
%
95.0
%
Future Lease Rate Differential
("FLRD")(2)
+11.0
%
+1.5
%
Improvement in current market lease rates
compared to the prior year period
Owned lease fleet (in units) (1)
109,195
105,915
Growth in the lease fleet
Investor-owned lease fleet (in units)
33,245
30,060
Additional sale to Wafra in Q3 2022
Rail Products Group
Revenues
$
597.3
$
339.9
Higher volume of deliveries, favorable
pricing, and price escalation
Revenues eliminations – Lease
subsidiary
$
(295.3
)
$
(105.3
)
Operating profit (loss)
$
26.0
$
(3.1
)
Higher deliveries, improved pricing and
storm-related insurance recoveries, partially offset by disruptions
in the transportation network used to deliver our products
Operating profit eliminations – Lease
subsidiary
$
(19.6
)
$
(4.5
)
Operating profit (loss) margin
4.4
%
(0.9
)%
New railcars:
Deliveries (in units)
3,935
2,410
Orders (in units)
19,500
2,530
2022 includes long-term supply agreement
of 15,000 railcars
Order value
$
2,405.5
$
218.6
2022 includes $1.8B from long-term supply
agreement
Backlog value
$
4,090.9
$
1,228.4
Sustainable railcar conversions:
Deliveries (in units)
300
242
Backlog (in units)
2,420
1,127
Backlog value
$
201.4
$
98.3
Corporate and other
Selling, engineering, and administrative
expenses
$
25.1
$
25.9
Gains on dispositions of property
$
(3.7
)
$
(2.8
)
September 30, 2022
December 31, 2021
Loan-to-value ratio
Wholly-owned subsidiaries, including
corporate revolving credit facility
67.4
%
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 8:00 a.m. Eastern on
October 25, 2022 to discuss its third 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 "6191522". 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 "2349723" until 11:59 p.m.
Eastern on November 1, 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 Third 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
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Revenues
$
496.6
$
419.8
$
1,386.1
$
1,043.8
Operating costs:
Cost of revenues
395.3
337.4
1,119.4
785.8
Selling, engineering, and administrative
expenses
48.0
45.8
137.7
136.7
Gains on dispositions of property:
Lease portfolio sales
34.3
32.9
73.0
45.7
Other
5.1
8.7
19.5
19.5
Restructuring activities, net
—
(0.1
)
1.0
(1.1
)
403.9
341.5
1,165.6
856.2
Operating profit
92.7
78.3
220.5
187.6
Interest expense, net
55.0
45.2
148.2
147.5
Loss on extinguishment of debt
—
—
1.5
11.7
Other, net
(0.6
)
(0.7
)
(2.7
)
1.3
Income from continuing operations before
income taxes
38.3
33.8
73.5
27.1
Provision (benefit) for income taxes:
Current
(2.6
)
0.5
1.2
5.7
Deferred
11.2
7.8
16.2
3.7
8.6
8.3
17.4
9.4
Income from continuing operations
29.7
25.5
56.1
17.7
Income (loss) from discontinued
operations, net of income taxes
(3.4
)
10.4
(13.7
)
24.3
Loss on sale of discontinued operations,
net of income taxes
—
—
(5.7
)
—
Net income
26.3
35.9
36.7
42.0
Net income (loss) attributable to
noncontrolling interest
0.5
3.9
7.9
(6.0
)
Net income attributable to Trinity
Industries, Inc.
$
25.8
$
32.0
$
28.8
$
48.0
Basic earnings per common share:
Income from continuing operations
$
0.36
$
0.22
$
0.59
$
0.23
Income (loss) from discontinued
operations
(0.04
)
0.11
(0.24
)
0.23
Basic net income attributable to Trinity
Industries, Inc.
$
0.32
$
0.33
$
0.35
$
0.46
Diluted earnings per common share:
Income from continuing operations
$
0.35
$
0.22
$
0.57
$
0.22
Income (loss) from discontinued
operations
(0.04
)
0.11
(0.23
)
0.23
Diluted net income attributable to Trinity
Industries, Inc.
$
0.31
$
0.33
$
0.34
$
0.45
Weighted average number of shares
outstanding:
Basic
81.7
97.7
82.3
103.4
Diluted
83.3
99.5
84.4
105.7
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)
September 30, 2022
December 31, 2021
ASSETS
Cash and cash equivalents
$
58.5
$
167.3
Receivables, net of allowance
280.2
227.6
Income tax receivable
11.0
5.4
Inventories
686.5
432.9
Restricted cash
180.2
135.1
Property, plant, and equipment, net:
Manufacturing/Corporate
341.6
349.3
Leasing:
Wholly-owned subsidiaries
5,793.1
5,706.1
Partially-owned subsidiaries
1,533.5
1,570.6
Deferred profit on railcars sold to the
Leasing Group
(774.4
)
(779.1
)
6,893.8
6,846.9
Goodwill
159.5
154.2
Other assets
329.4
266.5
Total assets
$
8,599.1
$
8,235.9
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable
$
286.6
$
206.4
Accrued liabilities
288.9
307.4
Debt:
Recourse (1)
459.0
398.7
Non-recourse:
Wholly-owned subsidiaries
3,844.5
3,555.8
Partially-owned subsidiaries
1,190.2
1,216.1
5,493.7
5,170.6
Deferred income taxes
1,128.5
1,106.8
Other liabilities
140.3
147.9
Stockholders' equity:
Trinity Industries, Inc.
1,005.9
1,029.8
Noncontrolling interest
255.2
267.0
1,261.1
1,296.8
Total liabilities and stockholders'
equity
$
8,599.1
$
8,235.9
(1)
Recourse debt as of September 30, 2022
includes $60.0 million outstanding associated with our corporate
revolving credit facility.
Trinity Industries, Inc.
Condensed Consolidated Statements of
Cash Flows
(in millions)
(unaudited)
Nine Months Ended
September 30,
2022
2021
Operating activities:
Net cash provided by (used in) operating
activities – continuing operations
$
(52.6
)
$
418.8
Net cash provided by (used in) operating
activities – discontinued operations
(15.4
)
8.4
Net cash provided by (used in) operating
activities
(68.0
)
427.2
Investing activities:
Proceeds from lease portfolio sales
514.8
404.5
Proceeds from dispositions of property and
other assets
33.2
34.3
Capital expenditures – leasing
(691.1
)
(363.9
)
Capital expenditures – manufacturing and
other
(25.7
)
(16.9
)
Acquisitions, net of cash acquired
(9.4
)
(16.5
)
Proceeds from insurance recoveries
7.6
6.5
Equity investments
(15.5
)
(0.2
)
Net cash provided by (used in) investing
activities – continuing operations
(186.1
)
47.8
Payments related to sale of discontinued
operations
(2.7
)
—
Net cash used in investing activities –
discontinued operations
—
(4.2
)
Net cash provided by (used in) investing
activities
(188.8
)
43.6
Financing activities:
Net proceeds from (repayments of) debt
313.0
136.9
Shares repurchased
(36.8
)
(406.5
)
Dividends paid to common shareholders
(58.3
)
(68.5
)
Other
(24.8
)
(16.0
)
Net cash provided by (used in) financing
activities
193.1
(354.1
)
Net increase (decrease) in cash, cash
equivalents, and restricted cash
(63.7
)
116.7
Cash, cash equivalents, and restricted
cash at beginning of period
302.4
228.4
Cash, cash equivalents, and restricted
cash at end of period
$
238.7
$
345.1
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 from continuing
operations before income taxes, provision (benefit) for income
taxes, income 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 September
30, 2022
GAAP
Gains on dispositions of
property – other(1)
Interest expense,
net(2)
Adjusted
Operating profit
$
92.7
$
(1.1
)
$
—
$
91.6
Income from continuing operations before
income taxes
$
38.3
$
(1.1
)
$
(0.3
)
$
36.9
Provision (benefit) for income taxes
$
8.6
$
(0.3
)
$
(0.1
)
$
8.2
Income from continuing operations
$
29.7
$
(0.8
)
$
(0.2
)
$
28.7
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
29.2
$
(0.8
)
$
(0.2
)
$
28.2
Diluted weighted average shares
outstanding
83.3
83.3
Diluted income from continuing operations
per common share attributable to Trinity Industries, Inc.
$
0.35
$
0.34
Nine Months Ended September
30, 2022
GAAP
Gains on dispositions of
property – other(1)
Restructuring activities,
net
Interest expense,
net(2)
Adjusted
Operating profit
$
220.5
$
(7.5
)
$
1.0
$
—
$
214.0
Income from continuing operations before
income taxes
$
73.5
$
(7.5
)
$
1.0
$
(1.0
)
$
66.0
Provision (benefit) for income taxes
$
17.4
$
(1.9
)
$
0.3
$
(0.3
)
$
15.5
Income from continuing operations
$
56.1
$
(5.6
)
$
0.7
$
(0.7
)
$
50.5
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
48.2
$
(5.6
)
$
0.7
$
(0.7
)
$
42.6
Diluted weighted average shares
outstanding
84.4
84.4
Diluted income from continuing operations
per common share attributable to Trinity Industries, Inc.
$
0.57
$
0.50
Three Months Ended September
30, 2021
GAAP
Gains on dispositions of
property – other(1)(3)
Restructuring activities,
net(3)
Income tax effect of CARES
Act
Adjusted
Operating profit
$
78.3
$
(4.7
)
$
(0.1
)
$
—
$
73.5
Income from continuing operations before
income taxes
$
33.8
$
(4.7
)
$
(0.1
)
$
—
$
29.0
Provision (benefit) for income taxes
$
8.3
$
(1.2
)
$
—
$
0.2
$
7.3
Income from continuing operations
$
25.5
$
(3.5
)
$
(0.1
)
$
(0.2
)
$
21.7
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
21.6
$
(3.5
)
$
(0.1
)
$
(0.2
)
$
17.8
Diluted weighted average shares
outstanding
99.5
99.5
Diluted income from continuing operations
per common share attributable to Trinity Industries, Inc.
$
0.22
$
0.18
Nine Months Ended September
30, 2021
GAAP
Gains on dispositions of
property – other(1)(3)
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
$
187.6
$
(4.7
)
$
(1.1
)
$
—
$
—
$
—
$
—
$
181.8
Income from continuing operations before
income taxes
$
27.1
$
(4.7
)
$
(1.1
)
$
4.6
$
7.1
$
2.2
$
—
$
35.2
Provision (benefit) for income taxes
$
9.4
$
(1.2
)
$
(0.3
)
$
1.0
$
—
$
0.5
$
(3.2
)
$
6.2
Income from continuing operations
$
17.7
$
(3.5
)
$
(0.8
)
$
3.6
$
7.1
$
1.7
$
3.2
$
29.0
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
23.7
$
(3.5
)
$
(0.8
)
$
3.6
$
—
$
1.7
$
3.2
$
27.9
Diluted weighted average shares
outstanding
105.7
105.7
Diluted income from continuing operations
per common share attributable to Trinity Industries, Inc.
$
0.22
$
0.26
(1)
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.
(2)
Represents interest income accretion
related to a seller-financing agreement associated with the sale of
certain non-operating assets.
(3)
The effective tax rate for gain on
dispositions of other property, 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.
Nine Months Ended
September 30,
2022
2021
Net cash provided by (used in) operating
activities – continuing operations
$
(52.6
)
$
418.8
Proceeds from lease portfolio sales
514.8
404.5
Adjusted Net Cash Provided by Operating
Activities
462.2
823.3
Capital expenditures – manufacturing and
other
(25.7
)
(16.9
)
Dividends paid to common stockholders
(58.3
)
(68.5
)
Free Cash Flow (before Capital
expenditures – leasing)
378.2
737.9
Equity CapEx for leased railcars
(378.1
)
(227.0
)
Total Free Cash Flow After Investments and
Dividends
$
0.1
$
510.9
Capital expenditures – leasing
$
691.1
$
363.9
Less:
Payments to retire debt
(1,351.5
)
(2,256.8
)
Proceeds from issuance of debt
1,664.5
2,393.7
Net proceeds from (repayments of) debt
313.0
136.9
Equity CapEx for leased railcars
$
378.1
$
227.0
EBITDA and Adjusted EBITDA
“EBITDA” is defined as income 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
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Net income
$
26.3
$
35.9
$
36.7
$
42.0
Less: Income (loss) from discontinued
operations, net of income taxes
(3.4
)
10.4
(13.7
)
24.3
Less: Loss on sale of discontinued
operations, net of income taxes
—
—
(5.7
)
—
Income from continuing operations
$
29.7
$
25.5
$
56.1
$
17.7
Interest expense
56.2
45.3
152.3
147.8
Provision (benefit) for income taxes
8.6
8.3
17.4
9.4
Depreciation and amortization expense
69.8
68.6
206.0
200.4
EBITDA
$
164.3
$
147.7
$
431.8
$
375.3
Gains on dispositions of property –
other
(1.1
)
(4.7
)
(7.5
)
(4.7
)
Restructuring activities, net
—
(0.1
)
1.0
(1.1
)
Interest income
(0.3
)
—
(1.0
)
—
Loss on extinguishment of debt
—
—
—
11.7
Pension plan settlement
—
—
—
2.2
Adjusted EBITDA
$
162.9
$
142.9
$
424.3
$
383.4
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221025005321/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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