Generates year-to-date operating and
adjusted free cash flow of $140 million and $81 million,
respectively
Reports both quarterly GAAP and adjusted
earnings from continuing operations of $0.23 per diluted
share
Lease fleet utilization of 97.9% and Future
Lease Rate Differential ("FLRD") of positive 29.5% at quarter
end
Delivered 4,985 railcars and received orders
for 4,770 railcars in the quarter; backlog of $3.6 billion at
quarter-end
Trinity Industries, Inc. (NYSE:TRN) today announced earnings
results for the second quarter ended June 30, 2023.
Financial and Operational
Highlights
- Quarterly total company revenues of $722 million; 73%
improvement year over year
- Quarterly income from continuing operations per common diluted
share ("EPS") of $0.23; 64% improvement year over year
- Lease fleet utilization of 97.9% and FLRD of positive 29.5% at
quarter end
- Railcar deliveries of 4,985 and new railcar orders of
4,770
- Year-to-date cash flow from continuing operations and adjusted
free cash flow after investments and dividends ("Adjusted Free Cash
Flow") were $140 million and $81 million, respectively
2023 Guidance
- Industry deliveries of approximately 45,000 railcars
- Net investment in the lease fleet of $250 million to $350
million
- Manufacturing capital expenditures of $40 million to $50
million
- EPS of $1.35 to $1.45
- Excludes items outside of our core business operations
Management Commentary
“Our results this quarter reflect a favorable operating
environment and significant positive trends in our business,” said
Trinity’s Chief Executive Officer and President, Jean Savage. “We
continue to see rising lease rates that reflect a balanced railcar
fleet and railcar orders and deliveries to support replacement
level demand, setting Trinity up for growth in the second half of
the year.”
“The Future Lease Rate Differential once again remained elevated
at 29.5%, and we are seeing the higher lease rates flow through at
the segment level, resulting in higher revenues in our Railcar
Leasing and Management Services Group, a trend we expect to
continue." Ms. Savage continued, “The Rail Products Group's high
revenue and deliveries reflect ramped up production. Margins
increased year over year but were negatively impacted by foreign
exchange headwinds and, to a lesser extent, labor inefficiencies
and higher line changeovers in the quarter. I am pleased with the
progress we are making in improving operational performance.”
Ms. Savage concluded, “We expect positive industry trends to
continue in the back half of the year, with lease rate growth and
consistent railcar deliveries driving up revenue. Additionally,
while we expect marked margin improvement in the second half of the
year, this will be partially offset by the strength of the Mexican
peso, higher interest expense, and slower recovery than expected in
efficiency and supply chain. However, we still plan for significant
growth year over year, and expect a full year EPS of $1.35 to
$1.45."
Consolidated Financial
Summary
Three Months Ended
June 30,
2023
2022
Year over Year – Comparison
($ in millions, except per
share amounts)
Revenues
$
722.4
$
416.8
Higher volume of external deliveries in
the Rail Products Group
Operating profit
$
99.1
$
73.0
Higher external deliveries in the Rail
Products Group and improved lease rates in the Leasing Group,
partially offset by increased employee-related and other operating
costs
Interest expense, net
$
66.9
$
49.7
Higher interest rates associated with
variable rate debt and higher overall average debt during Q2
2023
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
19.3
$
11.7
EBITDA (1)
$
173.3
$
143.6
Effective tax expense rate
23.9
%
26.0
%
Diluted EPS – GAAP
$
0.23
$
0.14
Primarily improved operating results,
partially offset by higher interest expense
Diluted EPS – Adjusted (1)
$
0.23
$
0.14
Six Months Ended
June 30,
2023
2022
Year over Year – Comparison
(in millions)
Net cash provided by (used in) operating
activities – continuing operations
$
140.3
$
(61.3
)
Working capital improvements relative to
inventory build up in the prior year
Adjusted Free Cash Flow (1)
$
80.8
$
42.5
Net lease fleet investment
$
214.0
$
198.9
Returns of capital to stockholders
$
43.3
$
89.6
2022 included $50.3 million of share
repurchase activity
(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 $699 million as of June 30,
2023.
- In June 2023, Trinity Rail Leasing 2023 LLC, a wholly-owned
subsidiary of the Company, entered into a $340 million term loan
agreement ("TRL-2023 term loan"). The TRL-2023 term loan bears
interest at a variable rate of daily simple Secured Overnight
Financing Rate plus (1) a benchmark adjustment of 10 basis points
and (2) a facility margin of 1.80%, for an all-in interest rate of
6.96% as of June 30, 2023. The TRL-2023 term loan has a stated
maturity date of June 12, 2028. Net proceeds received from the
transaction were used to repay borrowings under Trinity Industries
Leasing Company's warehouse loan facility and for general corporate
purposes.
- In June 2023, we issued $400 million aggregate principal amount
of 7.75% senior notes due July 2028 ("Senior Notes due 2028").
Interest on the Senior Notes due 2028 is payable semiannually
commencing January 15, 2024. Net proceeds received from the
issuance were used to repay outstanding borrowings under our
revolving credit facility and to pay related fees, costs, premiums,
and expenses in connection with the issuance. We intend to use the
remainder of the net proceeds for general corporate purposes, which
may include repayment of other debt, including our 4.55% senior
notes due 2024.
Business Group Summary
Three Months Ended
June 30,
2023
2022
Year over Year – Comparison
($ in millions)
Railcar Leasing and Management Services
Group
Leasing and management revenues
$
223.2
$
195.3
Improved lease rates and higher
utilization, as well as acquisition-related revenues included in
the current year period
Leasing and management operating
profit
$
88.7
$
78.6
Improved lease rates and higher
utilization, partially offset by higher maintenance costs
Operating profit on lease portfolio
sales
$
29.8
$
26.9
Higher profits on lease fleet portfolio
sales
Fleet utilization (1)
97.9
%
97.2
%
Future Lease Rate Differential (2)
+29.5
%
+14.7
%
Improvement in current market lease
rates
Owned lease fleet (in units) (1)
109,060
110,560
Lease fleet portfolio sales partially
offset by growth in the lease fleet
Investor-owned lease fleet (in units)
33,205
30,115
Additional sale to Signal Rail in Q3
2022
Rail Products Group
Revenues
$
709.0
$
430.6
Higher volume of deliveries offset by the
mix of railcars sold
Operating profit
$
23.7
$
13.7
Increased deliveries, partially offset by
the mix of railcars sold, foreign currency fluctuations, and
operational and labor inefficiencies
Operating profit margin
3.3
%
3.2
%
Revenues eliminations – Lease
subsidiary
$
(209.6
)
$
(208.9
)
Operating profit eliminations – Lease
subsidiary
$
(13.1
)
$
(20.3
)
New railcars:
Deliveries (in units)
4,985
2,510
Orders (in units)
4,770
4,335
Order value
$
528.3
$
524.4
Backlog value
$
3,605.4
$
2,194.7
Sustainable railcar conversions:
Deliveries (in units)
45
485
Backlog (in units)
2,160
2,350
Backlog value
$
179.9
$
188.6
Corporate and other
Selling, engineering, and administrative
expenses
$
31.6
$
25.4
Higher employee-related costs and $2.0
million from the change in estimated fair value of additional
contingent consideration associated with an acquisition
Gains on dispositions of property
$
—
$
(0.3
)
June 30,
2023
December 31,
2022
Loan-to-value ratio
Wholly-owned subsidiaries, excluding
corporate revolving credit facility
65.1
%
65.7
%
(1) Includes wholly-owned railcars,
partially-owned railcars, and railcars under leased-in
arrangements.
(2) FLRD calculates the implied change in
lease rates for railcar leases expiring over the next four
quarters. The FLRD assumes that these expiring leases will be
renewed at the most recent quarterly transacted lease rates for
each railcar type. We believe the FLRD is useful to both management
and investors as it provides insight into the near-term trend in
lease rates.
Conference Call
Trinity will hold a conference call at 8:00 a.m. Eastern on
August 1, 2023 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 "8715911". 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 "7420400" until 11:59 p.m.
Eastern on August 8, 2023.
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 reported 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.
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; railcar manufacturing, maintenance and modifications; and
other railcar logistics products and services. 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. 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.
- TABLES TO FOLLOW -
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,
2023
2022
2023
2022
Revenues
$
722.4
$
416.8
$
1,364.1
$
889.5
Operating costs:
Cost of revenues
601.2
325.6
1,139.7
724.1
Selling, engineering, and administrative
expenses
54.3
45.0
104.2
89.7
Gains on dispositions of property:
Lease portfolio sales
29.8
26.9
43.3
38.7
Other
0.6
0.9
2.4
14.4
Restructuring activities, net
(1.8
)
1.0
(2.2
)
1.0
623.3
343.8
1,196.0
761.7
Operating profit
99.1
73.0
168.1
127.8
Interest expense, net
66.9
49.7
129.0
93.2
Loss on extinguishment of debt
—
1.5
—
1.5
Other, net
1.3
(0.5
)
2.9
(2.1
)
Income from continuing operations before
income taxes
30.9
22.3
36.2
35.2
Provision (benefit) for income taxes:
Current
3.1
2.0
4.0
3.8
Deferred
4.3
3.8
(8.1
)
5.0
7.4
5.8
(4.1
)
8.8
Income from continuing operations
23.5
16.5
40.3
26.4
Loss from discontinued operations, net of
income taxes
(2.3
)
(3.4
)
(5.4
)
(10.3
)
Loss on sale of discontinued operations,
net of income taxes
—
(4.6
)
—
(5.7
)
Net income
21.2
8.5
34.9
10.4
Net income attributable to noncontrolling
interest
4.2
4.8
13.5
7.4
Net income attributable to Trinity
Industries, Inc.
$
17.0
$
3.7
$
21.4
$
3.0
Basic earnings per common share:
Income from continuing operations
$
0.24
$
0.14
$
0.33
$
0.23
Loss from discontinued operations
(0.03
)
(0.10
)
(0.07
)
(0.19
)
Basic net income attributable to Trinity
Industries, Inc.
$
0.21
$
0.04
$
0.26
$
0.04
Diluted earnings per common share:
Income from continuing operations
$
0.23
$
0.14
$
0.32
$
0.23
Loss from discontinued operations
(0.03
)
(0.10
)
(0.06
)
(0.19
)
Diluted net income attributable to Trinity
Industries, Inc.
$
0.20
$
0.04
$
0.26
$
0.04
Weighted average number of shares
outstanding:
Basic
81.2
82.4
81.0
82.7
Diluted
83.4
84.4
83.5
84.9
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,
2023
December 31,
2022
ASSETS
Cash and cash equivalents
$
91.7
$
79.6
Receivables, net of allowance
415.6
323.5
Income tax receivable
15.3
7.8
Inventories
622.2
629.4
Restricted cash
204.9
214.7
Property, plant, and equipment, net:
Manufacturing/Corporate
347.0
340.7
Leasing:
Wholly-owned subsidiaries
5,945.2
5,788.1
Partially-owned subsidiaries
1,500.8
1,521.3
Deferred profit on railcars sold to the
Leasing Group
(763.8
)
(763.3
)
7,029.2
6,886.8
Goodwill
222.1
195.9
Other assets
421.0
386.6
Total assets
$
9,022.0
$
8,724.3
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable
$
330.8
$
287.5
Accrued liabilities
310.6
261.0
Debt:
Recourse
793.9
624.1
Non-recourse:
Wholly-owned subsidiaries
3,870.8
3,800.7
Partially-owned subsidiaries
1,167.9
1,182.8
5,832.6
5,607.6
Deferred income taxes
1,138.6
1,134.7
Other liabilities
160.4
163.9
Stockholders' equity:
Trinity Industries, Inc.
994.6
1,012.4
Noncontrolling interest
254.4
257.2
1,249.0
1,269.6
Total liabilities and stockholders'
equity
$
9,022.0
$
8,724.3
Trinity Industries, Inc.
Condensed Consolidated Statements of
Cash Flows
(in millions)
(unaudited)
Six Months Ended
June 30,
2023
2022
Operating activities:
Net cash provided by (used in) operating
activities – continuing operations
$
140.3
$
(61.3
)
Net cash used in operating activities –
discontinued operations
(5.4
)
(12.0
)
Net cash provided by (used in) operating
activities
134.9
(73.3
)
Investing activities:
Proceeds from lease portfolio sales
185.7
215.2
Proceeds from dispositions of property and
other assets
8.4
23.8
Capital expenditures – leasing
(399.7
)
(414.1
)
Capital expenditures – manufacturing and
other
(20.8
)
(18.8
)
Acquisitions, net of cash acquired
(65.8
)
(9.4
)
Proceeds from insurance recoveries
1.2
4.8
Other
(1.1
)
—
Net cash used in investing activities –
continuing operations
(292.1
)
(198.5
)
Payments related to sale of discontinued
operations
—
(2.7
)
Net cash used in investing activities
(292.1
)
(201.2
)
Financing activities:
Net proceeds from (repayments of) debt
218.6
360.8
Shares repurchased
—
(22.4
)
Dividends paid to common shareholders
(43.3
)
(39.3
)
Other
(15.8
)
(20.5
)
Net cash provided by financing
activities
159.5
278.6
Net increase in cash, cash equivalents,
and restricted cash
2.3
4.1
Cash, cash equivalents, and restricted
cash at beginning of period
294.3
302.4
Cash, cash equivalents, and restricted
cash at end of period
$
296.6
$
306.5
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 certain selling, engineering, and
administrative expenses; gains on dispositions of other property;
restructuring activities, net; interest expense, net; 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 reported 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,
2023
GAAP
Selling,
engineering,
and
administrative
expenses (1)
Restructuring
activities, net
Interest
expense,
net (2)
Adjusted
Operating profit
$
99.1
$
2.0
$
(1.8
)
$
—
$
99.3
Income from continuing operations before
income taxes
$
30.9
$
2.0
$
(1.8
)
$
(0.3
)
$
30.8
Provision (benefit) for income taxes
$
7.4
$
0.5
$
(0.5
)
$
(0.1
)
$
7.3
Income from continuing operations
$
23.5
$
1.5
$
(1.3
)
$
(0.2
)
$
23.5
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
19.3
$
1.5
$
(1.3
)
$
(0.2
)
$
19.3
Diluted weighted average shares
outstanding
83.4
83.4
Diluted income from continuing operations
per common share attributable to Trinity Industries, Inc.
$
0.23
$
0.23
Six Months Ended June 30,
2023
GAAP
Selling,
engineering,
and
administrative
expenses (1)
Gains on dispositions of
property – other (3)
Restructuring
activities, net
Interest
expense,
net (2)
Adjusted
Operating profit
$
168.1
$
2.0
$
(1.2
)
$
(2.2
)
$
—
$
166.7
Income from continuing operations before
income taxes
$
36.2
$
2.0
$
(1.2
)
$
(2.2
)
$
(0.7
)
$
34.1
Provision (benefit) for income taxes
$
(4.1
)
$
0.5
$
(0.4
)
$
(0.6
)
$
(0.2
)
$
(4.8
)
Income from continuing operations
$
40.3
$
1.5
$
(0.8
)
$
(1.6
)
$
(0.5
)
$
38.9
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
26.8
$
1.5
$
(0.8
)
$
(1.6
)
$
(0.5
)
$
25.4
Diluted weighted average shares
outstanding
83.5
83.5
Diluted income from continuing operations
per common share attributable to Trinity Industries, Inc.
$
0.32
$
0.30
Three Months Ended June 30,
2022
GAAP
Restructuring activities,
net
Interest expense, net
(2)
Adjusted
Operating profit
$
73.0
$
1.0
$
—
$
74.0
Income 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 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 (3)
Restructuring
activities, net
Interest
expense,
net (2)
Adjusted
Operating profit
$
127.8
$
(6.4
)
$
1.0
$
—
$
122.4
Income 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 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
(1) Represents the change in estimated
fair value of additional contingent consideration associated with
an acquisition.
(2) Represents interest income accretion
related to a seller-financing agreement associated with the sale of
certain non-operating assets.
(3) 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.
Adjusted Free Cash Flow
Adjusted Free Cash Flow After Investments and Dividends
("Adjusted Free Cash Flow") is a non-GAAP financial measure. We
believe Adjusted 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. Adjusted 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. Adjusted 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) recourse and non-recourse debt. Non-GAAP measures
should not be considered in isolation or as a substitute for our
reported 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,
2023
2022
Net cash provided by (used in) operating
activities – continuing operations
$
140.3
$
(61.3
)
Proceeds from lease portfolio sales
185.7
215.2
Capital expenditures – manufacturing and
other
(20.8
)
(18.8
)
Dividends paid to common stockholders
(43.3
)
(39.3
)
Equity CapEx for leased railcars
(181.1
)
(53.3
)
Adjusted Free Cash Flow After Investments
and Dividends
$
80.8
$
42.5
Capital expenditures – leasing
$
399.7
$
414.1
Less:
Payments to retire debt
(1,035.3
)
(833.3
)
Proceeds from issuance of debt
1,253.9
1,194.1
Net proceeds from (repayments of) debt
218.6
360.8
Equity CapEx for leased railcars
$
181.1
$
53.3
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 certain selling,
engineering, and administrative expenses; gains on dispositions of
other property; restructuring activities, net; and interest income.
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 reported 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,
2023
2022
2023
2022
Net income
$
21.2
$
8.5
$
34.9
$
10.4
Less: Loss from discontinued operations,
net of income taxes
(2.3
)
(3.4
)
(5.4
)
(10.3
)
Less: Loss on sale of discontinued
operations, net of income taxes
—
(4.6
)
—
(5.7
)
Income from continuing operations
$
23.5
$
16.5
$
40.3
$
26.4
Interest expense
69.6
52.0
134.4
96.1
Provision (benefit) for income taxes
7.4
5.8
(4.1
)
8.8
Depreciation and amortization expense
72.8
69.3
146.8
136.2
EBITDA
$
173.3
$
143.6
$
317.4
$
267.5
Selling, engineering, and administrative
expenses
2.0
—
2.0
—
Gains on dispositions of property –
other
—
—
(1.2
)
(6.4
)
Restructuring activities, net
(1.8
)
1.0
(2.2
)
1.0
Interest income
(0.3
)
(0.4
)
(0.7
)
(0.7
)
Adjusted EBITDA
$
173.2
$
144.2
$
315.3
$
261.4
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230801025608/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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