Trinity Industries, Inc. (NYSE:TRN) today announced earnings
results for the three and nine months ended September 30,
2016, including the following significant highlights:
- Quarterly revenues and net income of
$1.1 billion and $84.2 million, respectively, compared to $1.5
billion and $204.3 million, respectively, last year
- Quarterly earnings per common diluted
share of $0.55 compared to $1.31 per share last year
- Quarterly orders totaling 1,260
railcars in the Rail Group
- An investment of $209.2 million in the
Company's wholly-owned lease fleet during the quarter
- No sales of leased railcars during the
quarter compared to sales that generated $0.39 of earnings per
common diluted share last year
- Available liquidity of $2.1 billion as
of September 30, 2016
- Full year anticipated 2016 earnings of
between $2.10 and $2.20 per common diluted share compared to
previous guidance of between $2.00 and $2.30 per share
- First half anticipated 2017 earnings of
between $0.45 and $0.60 per common diluted share compared to $1.25
per share in the first half of 2016
Consolidated Results
Trinity Industries, Inc. reported net income attributable to
Trinity stockholders of $84.2 million, or $0.55 per common diluted
share, for the third quarter ended September 30, 2016. Net
income for the same quarter of 2015 was $204.3 million, or $1.31
per common diluted share. Revenues for the third quarter of 2016
totaled $1.11 billion compared to revenues of $1.54 billion for the
same quarter of 2015.
"Trinity’s financial results for the third quarter reflect
reductions in year-over-year production volumes and product mix
changes in our railcar and barge manufacturing businesses," said
Timothy R. Wallace, Trinity's Chairman, CEO, and President.
"Oversupply of railcars and barges in the North American market,
combined with generally weak industrial demand drivers, continues
to impact new order volumes. Our Construction Products Group and
wind towers business performed well during the quarter."
Mr. Wallace added, "During the quarter, our railcar leasing
operations generated solid results; however, total segment revenues
and profitability decreased year-over-year as we did not conduct
any sales of leased railcars."
"Our outlook for 2017 reflects year-over-year volume reductions
in our railcar and barge manufacturing businesses as weak demand
conditions are expected to persist. In this environment, we are
focused on maintaining a strong cash position and liquid balance
sheet which provide stability as we manage through what we
anticipate could be a prolonged downturn for certain areas of our
business," concluded Mr. Wallace.
Business Group Results
In the third quarter of 2016, the Rail Group reported revenues
of $720.8 million compared to revenues of $1,073.4 million in the
third quarter of 2015. Operating profit for the Rail Group was
$103.6 million in the third quarter of 2016 compared to operating
profit of $223.3 million in the third quarter of 2015. The decrease
in revenues and profit was primarily due to lower railcar
deliveries and changes in product mix. The Rail Group shipped 6,595
railcars and received orders for 1,260 railcars during the third
quarter. The Rail Group had a backlog of $3.7 billion as of
September 30, 2016, representing 34,870 railcars, compared to
a backlog of $4.29 billion as of June 30, 2016, representing
40,205 railcars.
The Railcar Leasing and Management Services Group reported total
revenues of $173.7 million in the third quarter of 2016 compared to
total revenues of $249.2 million in the same quarter of 2015.
Operating profit for this Group was $80.5 million in the third
quarter of 2016 compared to operating profit of $158.2 million in
the third quarter of 2015. The decrease in revenues and operating
profit was primarily due to the absence of sales of leased railcars
from the lease fleet during the third quarter of 2016. Supplemental
information for the Leasing Group is provided in the accompanying
tables.
The Inland Barge Group reported revenues of $98.9 million in the
third quarter of 2016 compared to revenues of $164.8 million in the
third quarter of 2015. Operating profit for this Group was $11.7
million in the third quarter of 2016 compared to $28.1 million in
the third quarter of 2015. The decrease in revenues and operating
profit compared to the same quarter last year was primarily due to
lower barge deliveries and changes in product mix. As of
September 30, 2016, the Inland Barge Group had a backlog of
$177.3 million compared to a backlog of $251.0 million as of
June 30, 2016.
The Energy Equipment Group reported revenues of $241.7 million
in the third quarter of 2016 compared to revenues of $289.5 million
in the same quarter of 2015. The decrease in revenues compared to
the same quarter last year was due to lower delivery volumes in the
utility structures business and other product lines partially
offset by higher delivery volumes in the wind towers business.
Operating profit for the third quarter of 2016 was $31.2 million
compared to $44.8 million in the same quarter last year primarily
due to lower profit from our utility structures and other
businesses partially offset by higher profit in our wind towers
business. The backlog for wind towers as of September 30, 2016
was $1.0 billion compared to a backlog of $1.1 billion as of
June 30, 2016.
The Construction Products Group reported revenues of $139.8
million in the third quarter of 2016 compared to revenues of $154.8
million in the third quarter of 2015. Operating profit for the
third quarter of 2016 increased to $23.8 million compared to
operating profit of $19.9 million in the third quarter of 2015.
Revenues decreased compared to the same quarter last year primarily
as a result of lower volumes in our Highway Products business.
Operating profit for the Group increased in the third quarter of
2016 primarily as a result of improved performance in our
Aggregates business.
Cash and Liquidity
At September 30, 2016, the Company had cash, cash
equivalents, and short-term marketable securities of $842.5
million. When combined with capacity under committed credit
facilities, the Company had approximately $2.1 billion of available
liquidity at the end of the third quarter.
Share Repurchase
There were no shares repurchased during the third quarter of
2016 under the Company's current share repurchase authorization.
Year to date, the Company repurchased 2,070,600 shares of common
stock at a cost of $34.7 million leaving $215.4 million remaining
under its current authorization through December 31, 2017.
Earnings Guidance
Fourth Quarter 2016
For the fourth quarter of 2016, the Company anticipates earnings
of between $0.30 and $0.40 per common diluted share. This results
in full year 2016 earnings guidance of between approximately $2.10
and $2.20 per common diluted share compared to its previous
guidance of between $2.00 and $2.30 per share. The reduction in the
top-end of full year guidance results from the Company’s
expectation that it will not conduct sales of leased railcars it
owns during the fourth quarter. The Company's earnings guidance
compares to fourth quarter and full year 2015 earnings per common
diluted share of $1.30 and $5.08, respectively.
First Half 2017
The Company’s guidance for the first half of 2017 is based on
current information and market conditions as well as what is
anticipated in the near-term. The range of earnings provided
relates to the Company’s operations and does not include earnings
from sales of leased railcars at this time. The Company expects to
conduct sales of leased railcars in 2017. However, due to the
transactional nature of these sales, the level and timing of such
earnings are difficult to predict. In conjunction with the
announcement of its fourth quarter 2016 earnings in February, the
Company expects to have more insight into the sales of leased
railcars and will provide an update.
For the first half of 2017, the Company anticipates earnings per
common diluted share of between $0.45 and $0.60, compared to first
half 2016 earnings of $1.25 per share. First half 2016 earnings
included $0.21 per share from sales of leased railcars. The
Company’s guidance assumes significant year-over-year volume
reductions in its railcar and barge manufacturing businesses. The
Company expects to provide full year 2017 earnings guidance in
conjunction with its fourth quarter 2016 earnings announcement.
At this time, based on the level of order inquiries and
scheduled backlog production, the Rail Group expects first half
2017 deliveries to be approximately 7,000 to 8,000 railcars
compared to first half 2016 deliveries of 13,210.
Actual results in 2016 and 2017 may differ from present
expectations and could be impacted by a number of factors
including, among others, customer demand for the Company's
products; the operating leverage and efficiencies that can be
achieved by the Company's manufacturing businesses; the costs
associated with aligning manufacturing production capacity with
demand; the volume and level of profitability associated with the
sales of leased railcars; the dilutive impact of the convertible
notes related to changes in the Company's stock price; and the
impact of weather conditions on our operations and scheduled
shipments.
Conference Call
Trinity will hold a conference call at 11:00 a.m. Eastern on
October 27, 2016 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 and select the
Conference Calls menu link. An audio replay may be accessed through
the Company’s website or by dialing (402) 220-2658 until 11:59 p.m.
Eastern on November 3, 2016.
Company Description
Trinity Industries, Inc., headquartered in Dallas, Texas, is a
diversified industrial company that owns market-leading businesses
providing products and services to the energy, transportation,
chemical, 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,” “assumes,” “believes,”
“estimates,” “expects,” “intends,” “forecasts,” “may,” “will,”
“should,” “guidance,” “outlook,” 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 “Risk
Factors” and “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 EndedSeptember 30, 2016
2015 Revenues $ 1,111.7 $ 1,542.2 Operating
costs: Cost of revenues 827.3 1,109.4 Selling, engineering, and
administrative expenses 102.3 126.6 Losses (gains) on dispositions
of property:
Net gains on lease fleet sales
—
(57.8 ) Other (1.5 ) (0.9 ) 928.1
1,177.3 Operating profit 183.6 364.9 Interest
expense, net 43.9 46.1 Other, net 0.2 (1.0 )
Income before income taxes 139.5 319.8 Provision for income taxes
49.9 107.6 Net income 89.6 212.2 Net
income attributable to noncontrolling interest 5.4
7.9 Net income attributable to Trinity Industries,
Inc. $ 84.2 $ 204.3 Net income attributable to
Trinity Industries, Inc. per common share: Basic $ 0.55 $ 1.32
Diluted $ 0.55 $ 1.31 Weighted average number of shares
outstanding: Basic 148.7 150.0 Diluted 148.7 150.9
Trinity is required to utilize the two-class method of
accounting when calculating earnings per share as a result of
unvested restricted shares that have non-forfeitable rights to
dividends and are, therefore, considered to be a participating
security. The unvested restricted shares are excluded from the
weighted average number of shares outstanding for the purposes of
determining earnings per share. The two-class method results in a
lower earnings per share than is calculated from the face of the
income statement. See Earnings Per Share Calculation table
below.
Trinity Industries, Inc. Condensed
Consolidated Income Statements
(in millions, except per share
amounts)
(unaudited)
Nine Months EndedSeptember 30, 2016
2015 Revenues $ 3,484.5 $ 4,845.7 Operating
costs: Cost of revenues 2,614.9 3,540.1 Selling, engineering, and
administrative expenses 305.5 339.3 Losses (gains) on dispositions
of property: Net gains on lease fleet sales (13.5 ) (102.8 ) Other
(1.0 ) (11.8 ) 2,905.9 3,764.8
Operating profit 578.6 1,080.9 Interest expense, net 132.8
147.2 Other, net (5.4 ) (4.0 ) Income before income
taxes 451.2 937.7 Provision for income taxes 160.7
315.7 Net income 290.5 622.0 Net income attributable
to noncontrolling interest 14.5 25.5
Net income attributable to Trinity Industries, Inc. $ 276.0
$ 596.5 Net income attributable to Trinity
Industries, Inc. per common share: Basic $ 1.81 $ 3.84 Diluted $
1.81 $ 3.78 Weighted average number of shares outstanding: Basic
148.3 150.6 Diluted 148.3 153.1
Trinity is required to utilize the two-class method of
accounting when calculating earnings per share as a result of
unvested restricted shares that have non-forfeitable rights to
dividends and are, therefore, considered to be a participating
security. The unvested restricted shares are excluded from the
weighted average number of shares outstanding for the purposes of
determining earnings per share. The two-class method results in a
lower earnings per share than is calculated from the face of the
income statement. See Earnings Per Share Calculation table
below.
Trinity Industries, Inc. Condensed
Segment Data
(in millions)
(unaudited)
Three Months EndedSeptember 30,
Revenues: 2016 2015 Rail Group $
720.8 $ 1,073.4 Construction Products Group 139.8 154.8 Inland
Barge Group 98.9 164.8 Energy Equipment Group 241.7 289.5 Railcar
Leasing and Management Services Group 173.7 249.2 All Other
26.7 29.1 Segment Totals before Eliminations
1,401.6 1,960.8 Eliminations - lease subsidiary (206.7 ) (308.4 )
Eliminations - other (83.2 ) (110.2 ) Consolidated
Total $ 1,111.7 $ 1,542.2
Three
Months EndedSeptember 30, Operating profit
(loss): 2016 2015 Rail Group $ 103.6 $ 223.3
Construction Products Group 23.8 19.9 Inland Barge Group 11.7 28.1
Energy Equipment Group 31.2 44.8 Railcar Leasing and Management
Services Group 80.5 158.2 All Other (3.5 ) (3.0 )
Segment Totals before Eliminations and Corporate Expenses 247.3
471.3 Corporate (35.6 ) (39.7 ) Eliminations - lease subsidiary
(27.7 ) (65.6 ) Eliminations - other (0.4 ) (1.1 )
Consolidated Total $ 183.6 $ 364.9
Trinity Industries, Inc. Condensed Segment
Data
(in millions)
(unaudited)
Nine Months EndedSeptember 30,
Revenues: 2016 2015 Rail Group $
2,260.9 $ 3,328.2 Construction Products Group 410.5 418.9 Inland
Barge Group 328.0 505.7 Energy Equipment Group 755.7 871.5 Railcar
Leasing and Management Services Group 648.8 732.1 All Other
68.3 84.0 Segment Totals before Eliminations
4,472.2 5,940.4 Eliminations - lease subsidiary (742.1 ) (782.9 )
Eliminations - other (245.6 ) (311.8 ) Consolidated
Total $ 3,484.5 $ 4,845.7
Nine
Months EndedSeptember 30, Operating profit
(loss): 2016 2015 Rail Group $ 349.6 $ 663.7
Construction Products Group 61.2 49.5 Inland Barge Group 38.6 96.3
Energy Equipment Group 103.5 118.3 Railcar Leasing and Management
Services Group 272.4 418.7 All Other (13.8 ) (4.6 )
Segment Totals before Eliminations and Corporate Expenses 811.5
1,341.9 Corporate (95.0 ) (98.7 ) Eliminations - lease subsidiary
(139.1 ) (163.8 ) Eliminations - other 1.2 1.5
Consolidated Total $ 578.6 $ 1,080.9
Trinity Industries, Inc.
Leasing Group Condensed Results of Operations
(unaudited)
Three Months EndedSeptember 30, Nine Months
EndedSeptember 30, 2016 2015
2016 2015 ($ in millions)
Revenues: Leasing and management $ 173.7 $ 176.6 $ 522.7 $ 520.9
Sales of railcars owned one year or less at the time of sale(1)
—
72.6 126.1 211.2
Total revenues $ 173.7 $ 249.2 $ 648.8 $ 732.1 Operating profit:
Leasing and management $ 80.5 $ 81.8 $ 224.8 $ 254.7 Railcar
sales(1): Railcars owned one year or less at the time of sale —
18.6 34.1 61.2 Railcars owned more than one year at the time of
sale — 57.8 13.5
102.8 Total operating profit $ 80.5 $ 158.2 $ 272.4 $ 418.7
Operating profit margin: Leasing and management 46.3 % 46.3 % 43.0
% 48.9 % Railcar sales * * * * Total operating profit margin 46.3 %
63.5 % 42.0 % 57.2 % Selected expense information(2): Depreciation
$ 39.4 $ 35.9 $ 115.5 $ 105.8 Maintenance and compliance $ 21.3 $
24.6 $ 84.7 $ 65.9 Rent $ 9.9 $ 9.9 $ 29.3 $ 31.3 Interest $ 31.2 $
32.5 $ 94.4 $ 106.8
September
30,2016 December 31,2015 Leasing portfolio
information: Portfolio size (number of railcars) 82,540 76,765
Portfolio utilization 97.1 % 97.7 %
Nine Months
Ended September 30, 2016 2015 (in
millions) Proceeds from sales of leased railcars: Leasing
Group: Railcars owned one year or less at the time of sale $ 126.1
$ 211.2 Railcars owned more than one year at the time of sale 37.7
313.4 Rail Group 8.1 175.8 $ 171.9
$ 700.4
* Not meaningful
(1) The Company recognizes sales of railcars from the lease
fleet which have been owned by the lease fleet for one year or less
as revenue. Sales of railcars from the lease fleet which have been
owned by the lease fleet for more than one year are recognized as a
net gain or loss from the disposal of a long-term asset.
(2) Depreciation, maintenance and compliance, and rent expense
are components of operating profit. Amortization of deferred profit
on railcars sold from the Rail Group to the Leasing Group is
included in the operating profit of the Leasing Group resulting in
the recognition of depreciation expense based on the Company's
original manufacturing cost of the railcars. Interest expense is
not a component of operating profit and includes the effect of
hedges.
Trinity Industries, Inc.
Condensed Consolidated Balance Sheets
(in millions)
(unaudited)
September 30,2016 December
31,2015 Cash and cash equivalents $ 557.8 $ 786.0
Short-term marketable securities 284.7 84.9 Receivables, net of
allowance 372.2 369.9 Income tax receivable 54.9 94.9 Inventories
869.6 943.1 Restricted cash 183.9 195.8 Net property, plant, and
equipment 5,763.2 5,348.0 Goodwill 754.5 753.8 Other assets
294.8 309.5 $ 9,135.6 $ 8,885.9 Accounts payable $
211.0 $ 216.8 Accrued liabilities 477.7 529.6 Debt, net of
unamortized discount of $31.5 and $44.2 3,107.1 3,195.4 Deferred
income 24.2 27.1 Deferred income taxes 936.0 752.2 Other
liabilities 125.2 116.1 Stockholders' equity: Trinity Industries,
Inc. 3,861.5 3,653.9 Noncontrolling interest 392.9
394.8 4,254.4 4,048.7 $ 9,135.6 $ 8,885.9
Trinity Industries, Inc.
Additional Balance Sheet Information
(in millions)
(unaudited)
September 30,2016 December 31,2015
Property, Plant, and Equipment Corporate/Manufacturing:
Property, plant, and equipment $ 1,909.0 $ 1,861.5 Accumulated
depreciation (950.5 ) (905.4 ) 958.5
956.1 Leasing: Wholly-owned subsidiaries: Machinery
and other 10.7 10.7 Equipment on lease 4,395.4 3,763.5 Accumulated
depreciation (729.1 ) (647.9 ) 3,677.0
3,126.3 Partially-owned subsidiaries: Equipment on
lease 2,308.4 2,307.7 Accumulated depreciation (414.4 )
(369.1 ) 1,894.0 1,938.6
Net deferred profit on railcars sold to the Leasing Group
(766.3 ) (673.0 ) $ 5,763.2 $ 5,348.0
Trinity Industries, Inc.
Additional Balance Sheet Information
(in millions)
(unaudited)
September 30,2016 December
31,2015 Debt Corporate - Recourse: Revolving
credit facility $ — $ — Senior notes due 2024, net of unamortized
discount of $0.4 and $0.4 399.6 399.6 Convertible subordinated
notes, net of unamortized discount of $31.1 and $43.8 418.3 405.6
Other 0.3 0.5 818.2 805.7 Less:
unamortized debt issuance costs (3.9 ) (4.7 )
814.3 801.0 Leasing: Wholly-owned
subsidiaries: Recourse: Capital lease obligations, net of
unamortized debt issuance costs of $0.1 and $0.1 33.1
35.7 33.1 35.7
Non-recourse: Secured railcar equipment notes 656.2 679.5 Warehouse
facility 236.8 264.3 893.0 943.8 Less:
unamortized debt issuance costs (12.3 ) (15.1 )
880.7 928.7 Partially-owned
subsidiaries - Non-recourse: Secured railcar equipment notes
1,394.4 1,446.9 Less: unamortized debt issuance costs (15.4
) (16.9 ) 1,379.0 1,430.0 $
3,107.1 $ 3,195.4
Trinity Industries, Inc. Additional Balance Sheet
Information
($ in millions)
(unaudited)
September 30,2016 December
31,2015 Leasing Debt Summary Total Recourse Debt
$ 33.1 $ 35.7 Total Non-Recourse Debt 2,259.7
2,358.7 $ 2,292.8 $ 2,394.4 Total Leasing Debt
Wholly-owned subsidiaries $ 913.8 $ 964.4 Partially-owned
subsidiaries 1,379.0 1,430.0 $ 2,292.8
$ 2,394.4 Equipment on Lease(1) Wholly-owned
subsidiaries $ 3,677.0 $ 3,126.3 Partially-owned subsidiaries
1,894.0 1,938.6 $ 5,571.0 $
5,064.9 Total Leasing Debt as a % of Equipment on Lease
Wholly-owned subsidiaries 24.9 % 30.8 % Partially-owned
subsidiaries 72.8 % 73.8 % Combined 41.2 % 47.3 %
(1) Excludes net deferred profit on railcars sold to the Leasing
Group.
Trinity Industries, Inc. Condensed
Consolidated Cash Flow Statements
(in millions)
(unaudited)
Nine Months EndedSeptember 30, 2016
2015 Operating activities: Net income $
290.5 $ 622.0 Adjustments to reconcile net income to net cash
provided by operating activities: Depreciation and amortization
210.6 197.9 Net gains on railcar lease fleet sales owned more than
one year at the time of sale (13.5 ) (102.8 ) Other 207.7 57.1
Changes in assets and liabilities: (Increase) decrease in
receivables 37.7 (43.9 ) (Increase) decrease in inventories 73.5
50.7 Increase (decrease) in accounts payable and accrued
liabilities (32.2 ) (129.5 ) Other 17.8 (21.2
) Net cash provided by operating activities 792.1
630.3
Investing activities: Proceeds from
railcar lease fleet sales owned more than one year at the time of
sale 37.7 313.4 Proceeds from dispositions of property 8.9 6.1
Capital expenditures - leasing, net of sold lease fleet railcars
owned one year or less with a net cost of $92.0 and $150.0 (555.2 )
(642.2 ) Capital expenditures - manufacturing and other (101.1 )
(145.1 ) (Increase) decrease in short-term marketable securities
(199.8 ) 75.0 Acquisitions — (46.2 ) Divestitures — 51.3 Other
4.0 4.8 Net cash required by investing
activities (805.5 ) (382.9 )
Financing
activities: Payments to retire debt (106.0 ) (530.8 ) Proceeds
from issuance of debt — 242.4 Shares repurchased (34.7 ) (107.5 )
Dividends paid to common shareholders (50.0 ) (48.0 ) Purchase of
shares to satisfy employee tax on vested stock (16.4 ) (27.4 )
Distributions to noncontrolling interest (18.4 ) (30.4 ) Decrease
in restricted cash 11.9 32.3 Other (1.2 ) 11.9
Net cash required by financing activities (214.8 )
(457.5 ) Net decrease in cash and cash equivalents (228.2 ) (210.1
) Cash and cash equivalents at beginning of period 786.0
887.9 Cash and cash equivalents at end of
period $ 557.8 $ 677.8
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 EndedSeptember 30, 2016
Three Months EndedSeptember 30,
2015 Income
AverageShares
EPS Income
AverageShares
EPS Net income attributable to Trinity Industries,
Inc. $ 84.2 $ 204.3 Unvested restricted share participation
(2.2 ) (6.0 ) Net income attributable to Trinity Industries,
Inc. - basic 82.0 148.7 $ 0.55 198.3 150.0 $ 1.32 Effect of
dilutive securities: Convertible subordinated notes —
— — 0.9 Net income attributable to Trinity
Industries, Inc. - diluted $ 82.0 148.7 $ 0.55 $ 198.3
150.9 $ 1.31
Nine Months
EndedSeptember 30, 2016 Nine Months
EndedSeptember 30, 2015 Income
AverageShares
EPS Income
AverageShares
EPS Net income attributable to Trinity Industries, Inc. $ 276.0 $
596.5 Unvested restricted share participation (7.7 )
(18.2 ) Net income attributable to Trinity Industries, Inc. - basic
268.3 148.3 $ 1.81 578.3 150.6 $ 3.84 Effect of dilutive
securities: Convertible subordinated notes — —
0.3 2.5 Net income attributable to Trinity Industries, Inc.
- diluted $ 268.3 148.3 $ 1.81 $ 578.6 153.1 $ 3.78
Trinity Industries, Inc.
Reconciliation of EBITDA
(in millions) (unaudited)
“EBITDA” is defined as net income 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 consolidated 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 EndedSeptember 30,
2016 2015 Net income $ 89.6 $ 212.2
Add: Interest expense 45.3 46.7 Provision for income taxes 49.9
107.6 Depreciation and amortization expense 70.7 67.5
Earnings before interest expense, income taxes, and depreciation
and amortization expense $ 255.5 $ 434.0
Nine
Months EndedSeptember 30, 2016 2015 Net
income $ 290.5 $ 622.0 Add: Interest expense 136.7 148.8 Provision
for income taxes 160.7 315.7 Depreciation and amortization expense
210.6 197.9 Earnings before interest expense, income
taxes, and depreciation and amortization expense $ 798.5 $ 1,284.4
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161026006823/en/
Investor Contact:Trinity Corporate Services, LLCJessica
Greiner, 214-631-4420Vice President, Investor RelationsorMedia
Contact:Trinity Industries, Inc.Jack Todd, 214-589-8909Vice
President, Public Affairs
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