Trinity Industries, Inc. Announces Second Quarter 2024 Results
Trinity Industries (NYSE:TRN) reported strong Q2 2024 results, with GAAP and adjusted EPS of $0.67 and $0.66 respectively, a significant improvement year-over-year. Key highlights include:
- Total revenues of $841 million, up 16% year-over-year
- Lease fleet utilization of 96.9% and Future Lease Rate Differential of +28.3%
- 4,755 railcar deliveries and 2,495 new orders
- Year-to-date operating cash flow of $300 million
- LTM Return on Equity of 14.8% and Adjusted ROE of 16.8%
The company raised its full-year 2024 EPS guidance to $1.55-$1.75, reflecting strong operational performance and positive market conditions. Trinity's CEO highlighted improvements across the business, including increased revenues, strong cash flow, and progress towards financial targets.
Trinity Industries (NYSE:TRN) ha riportato risultati solidi per il Q2 2024, con un EPS GAAP e rettificato rispettivamente di $0.67 e $0.66, un notevole miglioramento rispetto all'anno precedente. I principali punti salienti includono:
- Ricavi totali di $841 milioni, in aumento del 16% rispetto all'anno precedente
- Utilizzo della flotta in leasing del 96.9% e differenziale del tasso di leasing futuro di +28.3%
- 4.755 consegne di carrozze ferroviarie e 2.495 nuovi ordini
- Flusso di cassa operativo da inizio anno di $300 milioni
- Rendimento del capitale proprio negli ultimi dodici mesi del 14.8% e ROE rettificato del 16.8%
L'azienda ha alzato le previsioni per l'EPS dell'intero anno 2024 a $1.55-$1.75, riflettendo una forte performance operativa e condizioni di mercato positive. Il CEO di Trinity ha evidenziato i miglioramenti in tutto il business, inclusi l’aumento dei ricavi, un forte flusso di cassa e progressi verso obiettivi finanziari.
Trinity Industries (NYSE:TRN) reportó resultados sólidos en el Q2 2024, con EPS GAAP y ajustado de $0.67 y $0.66 respectivamente, una mejora significativa con respecto al año anterior. Los aspectos destacados incluyen:
- Ingresos totales de $841 millones, un aumento del 16% interanual
- Utilización de la flota de arrendamiento del 96.9% y diferencial de tasa de arrendamiento futuro de +28.3%
- 4,755 entregas de vagones ferroviarios y 2,495 nuevos pedidos
- Flujo de efectivo operativo acumulado del $300 millones
- Rentabilidad sobre el capital propio de los últimos doce meses del 14.8% y ROE ajustado del 16.8%
La empresa elevó su pronóstico para el EPS del año completo 2024 a $1.55-$1.75, reflejando un fuerte desempeño operativo y condiciones del mercado positivas. El CEO de Trinity destacó las mejoras en toda la empresa, incluido el aumento de ingresos, sólido flujo de efectivo y progresos hacia objetivos financieros.
트리니티 인더스트리(뉴욕증권거래소: TRN)는 2024년 2분기 결과를 발표했으며, GAAP 및 조정 주당순이익(EPS)은 각각 $0.67 및 $0.66으로, 전년 대비 상당한 개선을 보였습니다. 주요 하이라이트는 다음과 같습니다:
- 총 수익 $841백만, 전년 대비 16% 증가
- 리스 차량 사용률 96.9% 및 미래 리스 요금 차별화 +28.3%
- 4,755대의 화물차 배달 및 2,495개의 신규 주문
- 연초부터 운영 현금 흐름 $300 백만
- 최근 12개월 자기자본이익률(ROE) 14.8% 및 조정 ROE 16.8%
회사는 2024년 전체 연도 EPS 가이던스를 $1.55-$1.75로 상향 조정하였으며, 이는 강력한 운영 성과와 긍정적인 시장 상황을 반영합니다. 트리니티의 CEO는 수익 증가, 강력한 현금 흐름, 재무 목표를 향한 진전을 포함한 비즈니스 전반의 개선 사항을 강조했습니다.
Trinity Industries (NYSE:TRN) a annoncé de solides résultats du deuxième trimestre 2024, avec un BPA GAAP et ajusté de 0,67 $ et 0,66 $ respectivement, une amélioration significative par rapport à l'année précédente. Les principaux points forts incluent :
- Revenus totaux de 841 millions de dollars, en hausse de 16 % par rapport à l'année précédente
- Taux d'utilisation de la flotte de location de 96,9 % et un différentiel de taux de location futur de +28,3 %
- 4 755 livraisons de wagons et 2 495 nouvelles commandes
- Flux de trésorerie opérationnel depuis le début de l'année de 300 millions de dollars
- ROE à long terme de 14,8 % et ROE ajusté de 16,8 %
L'entreprise a relevé ses prévisions de BPA pour l'année 2024 à 1,55 $ - 1,75 $, reflétant une solide performance opérationnelle et des conditions de marché positives. Le PDG de Trinity a souligné les améliorations à travers l'entreprise, y compris l'augmentation des revenus, un fort flux de trésorerie et des progrès vers les objectifs financiers.
Trinity Industries (NYSE:TRN) hat starke Q2 2024 Ergebnisse berichtet, mit einem GAAP und einem angepassten EPS von $0.67 und $0.66, was eine signifikante Verbesserung im Vergleich zum Vorjahr darstellt. Zu den wichtigsten Punkten gehören:
- Gesamterlöse von $841 Millionen, ein Anstieg von 16% im Jahresvergleich
- Flottenauslastung von 96,9% und zukünftiger Leasingratenunterschied von +28,3%
- 4.755 Lieferungen von Güterwagen und 2.495 neue Bestellungen
- Betriebsergebnis bis heute von $300 Millionen
- LTM Eigenkapitalrendite von 14,8% und angepasste Eigenkapitalrendite von 16,8%
Das Unternehmen hob seine EPS-Prognose für das Gesamtjahr 2024 auf $1.55-$1.75 an, was die starke operative Leistung und positive Marktbedingungen widerspiegelt. Der CEO von Trinity hob die Verbesserungen im gesamten Unternehmen hervor, einschließlich gestiegener Erlöse, starkem Cashflow und Fortschritten in Richtung finanzieller Ziele.
- Quarterly EPS increased significantly to $0.67 (GAAP) and $0.66 (adjusted) from $0.23 year-over-year
- Total revenues grew 16% year-over-year to $841 million
- Operating profit increased to $141.9 million from $99.1 million in Q2 2023
- Year-to-date operating cash flow improved to $299.7 million from $140.3 million
- Lease fleet utilization remained high at 96.9% with a positive Future Lease Rate Differential of 28.3%
- Rail Products Group operating profit margin improved to 7.9% from 3.7% year-over-year
- Full-year 2024 EPS guidance raised to $1.55-$1.75
- New railcar orders decreased to 2,495 units from 4,770 units in Q2 2023
- Backlog value declined to $2.68 billion from $3.61 billion year-over-year
- Interest expense increased to $70.1 million from $66.9 million due to higher interest rates and average debt
Insights
Trinity Industries' Q2 2024 results demonstrate solid performance across key financial metrics. Quarterly revenues increased 16% year-over-year to
The Railcar Leasing and Services segment showed strength with a
The Rail Products Group demonstrated substantial margin improvement, with segment operating margin increasing to
Trinity's financial position remains robust, with
Based on these strong results, Trinity has raised its full-year EPS guidance to
Trinity's Q2 2024 results offer valuable insights into the broader railcar industry trends. The company's delivery of 4,755 railcars in the quarter, coupled with new orders for 2,495 units, indicates sustained demand in the sector. However, the order backlog value decreased to
The high fleet utilization rate of
Trinity's guidance for industry-wide deliveries of approximately 40,000 railcars in 2024 provides a benchmark for overall market size. This figure, combined with Trinity's own delivery numbers, suggests the company maintains a significant market share in railcar manufacturing.
The company's focus on sustainable railcar conversions, with 195 deliveries in Q2 and a backlog of 250 units, reflects the industry's growing emphasis on environmental sustainability and efficiency. This trend is likely to continue as shippers and railroads seek to reduce their carbon footprint.
Overall, Trinity's results and outlook suggest a stable to moderately growing railcar market, with opportunities in fleet modernization and sustainable solutions. The company's performance relative to these industry trends will be important for investors to monitor in the coming quarters.
Reports quarterly GAAP and adjusted earnings from continuing operations of
Lease fleet utilization of
Generates year-to-date operating cash flow of
Delivered 4,755 railcars in the quarter; backlog of
Financial and Operational Highlights
-
Quarterly total company revenues of
$841 million 16% improvement year over year -
Quarterly income from continuing operations per common diluted share ("EPS") of
$0.67 $0.66 $0.43 -
Lease fleet utilization of
96.9% and FLRD of positive28.3% at quarter-end - Railcar deliveries of 4,755 and new railcar orders of 2,495
-
Year-to-date cash flow from continuing operations of
$300 million $25 million -
Last twelve months ("LTM") Return on Equity ("ROE") of
14.8% and Adjusted ROE of16.8%
2024 Guidance
- Industry deliveries of approximately 40,000 railcars
-
Net fleet investment of
$300 million $400 million -
Operating and administrative capital expenditures of
$50 million $60 million -
EPS of
$1.55 $1.75 - Excludes items outside of our core business operations
Management Commentary
“Our second quarter GAAP EPS of
Ms. Savage continued, “In our Railcar Leasing and Services segment, we continue to see the benefit of a strong FLRD as we re-price the lease fleet upward, driving an
“In the Rail Products Group, segment operating margin of
Ms. Savage concluded, “We are encouraged by our second quarter results and believe they demonstrate the momentum of our operating platform. We are once again raising our full year guidance to a range of
Consolidated Financial Summary
|
Three Months Ended June 30, |
|
|
||||||
|
|
2024 |
|
|
|
2023 |
|
|
Year over Year – Comparison |
|
($ in millions, except per share amounts) |
|
|
||||||
Revenues |
$ |
841.4 |
|
|
$ |
722.4 |
|
|
Higher external deliveries in the Rail Products Group, and improved lease rates in the Leasing Group |
Operating profit |
$ |
141.9 |
|
|
$ |
99.1 |
|
|
Higher external deliveries and improved efficiencies in the Rail Products Group and improved lease rates in the Leasing Group, partially offset by lower lease portfolio sales |
Interest expense, net |
$ |
70.1 |
|
|
$ |
66.9 |
|
|
Higher interest rates and higher overall average debt during 2024 |
Net income from continuing operations attributable to Trinity Industries, Inc. |
$ |
56.1 |
|
|
$ |
19.3 |
|
|
|
EBITDA (1) |
$ |
223.9 |
|
|
$ |
173.3 |
|
|
|
Effective tax expense rate |
|
22.7 |
% |
|
|
23.9 |
% |
|
|
Diluted EPS – GAAP |
$ |
0.67 |
|
|
$ |
0.23 |
|
|
|
Diluted EPS – Adjusted (1) |
$ |
0.66 |
|
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
||||
|
Six Months Ended June 30, |
|
|
||||||
|
|
2024 |
|
|
|
2023 |
|
|
Year over Year – Comparison |
|
(in millions) |
|
|
||||||
Net cash provided by operating activities – continuing operations |
$ |
299.7 |
|
|
$ |
140.3 |
|
|
Higher external deliveries and working capital improvements |
Cash flow from operations with net gains on lease portfolio sales (1) |
$ |
324.5 |
|
|
$ |
183.6 |
|
|
|
Net fleet investment |
$ |
46.0 |
|
|
$ |
214.0 |
|
|
Timing of lease portfolio sales relative to fleet additions |
Returns of capital to stockholders |
$ |
48.1 |
|
|
$ |
43.3 |
|
|
|
(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
$985 million -
In June 2024, we issued an additional
$200 million 7.75% senior notes due July 2028, which increased the aggregate principal amount from$400 million $600 million $400 million 4.55% senior notes due 2024, and to pay related fees, costs, premiums, and expenses in connection with the issuance. -
In May 2024, Trinity Rail Leasing 2021 LLC, a wholly-owned subsidiary of the Company, issued an aggregate principal amount of
$432 million 5.78% and have a stated final maturity date of May 19, 2054. Net proceeds received from the issuance of the TRL-2024 Notes were used to repay borrowings under TILC's warehouse loan facility; to redeem the outstanding debt of Trinity Rail Leasing VII LLC's Series 2009-1 Secured Railcar Equipment Notes, of which$94 million -
In May 2024, we sold a portfolio comprised of 1,315 railcars and related leases to a railcar investment vehicle (RIV) partner for an aggregate sales price of approximately
$143 million $19 million
Business Group Summary
|
Three Months Ended June 30, |
|
|
||||||
|
|
2024 |
|
|
|
2023 |
|
|
Year over Year – Comparison |
|
($ in millions) |
|
|
||||||
Railcar Leasing and Services Group |
|
|
|||||||
Revenues |
$ |
281.4 |
|
|
$ |
268.3 |
|
|
Improved lease rates and net additions to the lease fleet |
Operating profit |
$ |
128.0 |
|
|
$ |
116.1 |
|
|
Improved lease rates and net additions to the lease fleet, partially offset by lower lease portfolio sales |
Operating profit margin |
|
45.5 |
% |
|
|
43.3 |
% |
|
|
Gains on lease portfolio sales |
$ |
22.7 |
|
|
$ |
29.8 |
|
|
|
Fleet utilization (1) |
|
96.9 |
% |
|
|
97.9 |
% |
|
|
FLRD (2) |
|
+28.3 |
% |
|
|
+29.5 |
% |
|
Continued strength in current lease rates |
Owned lease fleet (in units) (1) |
|
109,365 |
|
|
|
109,060 |
|
|
|
Investor-owned lease fleet (in units) |
|
34,305 |
|
|
|
33,205 |
|
|
|
Rail Products Group |
|
|
|
|
|
||||
Revenues |
$ |
634.2 |
|
|
$ |
655.4 |
|
|
Lower deliveries and the mix of railcars sold |
Operating profit |
$ |
50.4 |
|
|
$ |
24.3 |
|
|
Improved labor and operational efficiencies, partially offset by lower deliveries |
Operating profit margin |
|
7.9 |
% |
|
|
3.7 |
% |
|
|
New railcars: |
|
|
|
|
|
||||
Deliveries (in units) |
|
4,755 |
|
|
|
4,985 |
|
|
|
Orders (in units) |
|
2,495 |
|
|
|
4,770 |
|
|
|
Order value |
$ |
338.8 |
|
|
$ |
528.3 |
|
|
|
Backlog value |
$ |
2,683.2 |
|
|
$ |
3,605.4 |
|
|
|
Sustainable railcar conversions: |
|
|
|
|
|
||||
Deliveries (in units) |
|
195 |
|
|
|
45 |
|
|
|
Backlog (in units) |
|
250 |
|
|
|
2,160 |
|
|
|
Backlog value |
$ |
19.6 |
|
|
$ |
179.9 |
|
|
|
Eliminations |
|
|
|
|
|
||||
Eliminations – revenues |
$ |
(74.2 |
) |
|
$ |
(201.3 |
) |
|
|
Eliminations – operating profit |
$ |
(3.2 |
) |
|
$ |
(11.5 |
) |
|
|
Corporate and other |
|
|
|
|
|
||||
Selling, engineering, and administrative expenses |
$ |
33.5 |
|
|
$ |
31.6 |
|
|
|
|
|
|
|
|
|
||||
|
June 30,
|
|
December 31, 2023 |
|
|
||||
Loan-to-value ratio |
|
|
|
|
|
||||
Wholly-owned subsidiaries |
|
68.3 |
% |
|
|
64.4 |
% |
|
|
(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, 2024 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 "6316195". Please call at least 10 minutes in advance to ensure a proper connection. An audio replay may be accessed through the Company’s website or by dialing 1-877-344-7529 with passcode "6133090" until 11:59 p.m. Eastern on August 8, 2024.
Additionally, the Company will provide a quarterly investor presentation that 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
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, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
$ |
841.4 |
|
|
$ |
722.4 |
|
|
$ |
1,651.0 |
|
|
$ |
1,364.1 |
|
Operating costs: |
|
|
|
|
|
|
|
||||||||
Cost of revenues |
|
662.4 |
|
|
|
601.2 |
|
|
|
1,307.3 |
|
|
|
1,139.7 |
|
Selling, engineering, and administrative expenses |
|
61.3 |
|
|
|
54.3 |
|
|
|
113.6 |
|
|
|
104.2 |
|
Gains on dispositions of property: |
|
|
|
|
|
|
|
||||||||
Lease portfolio sales |
|
22.7 |
|
|
|
29.8 |
|
|
|
24.8 |
|
|
|
43.3 |
|
Other |
|
1.5 |
|
|
|
0.6 |
|
|
|
2.2 |
|
|
|
2.4 |
|
Restructuring activities, net |
|
— |
|
|
|
(1.8 |
) |
|
|
— |
|
|
|
(2.2 |
) |
|
|
699.5 |
|
|
|
623.3 |
|
|
|
1,393.9 |
|
|
|
1,196.0 |
|
Operating profit |
|
141.9 |
|
|
|
99.1 |
|
|
|
257.1 |
|
|
|
168.1 |
|
Interest expense, net |
|
70.1 |
|
|
|
66.9 |
|
|
|
139.2 |
|
|
|
129.0 |
|
Other, net |
|
(3.4 |
) |
|
|
1.3 |
|
|
|
— |
|
|
|
2.9 |
|
Income from continuing operations before income taxes |
|
75.2 |
|
|
|
30.9 |
|
|
|
117.9 |
|
|
|
36.2 |
|
Provision (benefit) for income taxes: |
|
|
|
|
|
|
|
||||||||
Current |
|
13.8 |
|
|
|
3.1 |
|
|
|
26.9 |
|
|
|
4.0 |
|
Deferred |
|
3.3 |
|
|
|
4.3 |
|
|
|
1.2 |
|
|
|
(8.1 |
) |
|
|
17.1 |
|
|
|
7.4 |
|
|
|
28.1 |
|
|
|
(4.1 |
) |
Income from continuing operations |
|
58.1 |
|
|
|
23.5 |
|
|
|
89.8 |
|
|
|
40.3 |
|
Loss from discontinued operations, net of income taxes |
|
(1.7 |
) |
|
|
(2.3 |
) |
|
|
(6.0 |
) |
|
|
(5.4 |
) |
Net income |
|
56.4 |
|
|
|
21.2 |
|
|
|
83.8 |
|
|
|
34.9 |
|
Net income attributable to noncontrolling interest |
|
2.0 |
|
|
|
4.2 |
|
|
|
5.7 |
|
|
|
13.5 |
|
Net income attributable to Trinity Industries, Inc. |
$ |
54.4 |
|
|
$ |
17.0 |
|
|
$ |
78.1 |
|
|
$ |
21.4 |
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share: |
|
|
|
|
|
|
|
||||||||
Income from continuing operations |
$ |
0.68 |
|
|
$ |
0.24 |
|
|
$ |
1.03 |
|
|
$ |
0.33 |
|
Loss from discontinued operations |
|
(0.02 |
) |
|
|
(0.03 |
) |
|
|
(0.07 |
) |
|
|
(0.07 |
) |
Basic net income attributable to Trinity Industries, Inc. |
$ |
0.66 |
|
|
$ |
0.21 |
|
|
$ |
0.96 |
|
|
$ |
0.26 |
|
Diluted earnings per common share: |
|
|
|
|
|
|
|
||||||||
Income from continuing operations |
$ |
0.67 |
|
|
$ |
0.23 |
|
|
$ |
1.01 |
|
|
$ |
0.32 |
|
Loss from discontinued operations |
|
(0.02 |
) |
|
|
(0.03 |
) |
|
|
(0.07 |
) |
|
|
(0.06 |
) |
Diluted net income attributable to Trinity Industries, Inc. |
$ |
0.65 |
|
|
$ |
0.20 |
|
|
$ |
0.94 |
|
|
$ |
0.26 |
|
Weighted average number of shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
82.4 |
|
|
|
81.2 |
|
|
|
81.7 |
|
|
|
81.0 |
|
Diluted |
|
84.1 |
|
|
|
83.4 |
|
|
|
83.4 |
|
|
|
83.5 |
|
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,
|
|
December 31, 2023 |
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
257.1 |
|
|
$ |
105.7 |
|
Receivables, net of allowance |
|
397.5 |
|
|
|
363.5 |
|
Income tax receivable |
|
4.6 |
|
|
|
5.2 |
|
Inventories |
|
616.9 |
|
|
|
684.3 |
|
Restricted cash |
|
107.1 |
|
|
|
129.4 |
|
Property, plant, and equipment, net: |
|
|
|
||||
Railcars in our lease fleet: |
|
|
|
||||
Wholly-owned subsidiaries |
|
5,884.2 |
|
|
|
5,931.8 |
|
Partially-owned subsidiaries |
|
1,446.8 |
|
|
|
1,473.2 |
|
Deferred profit on railcar products sold |
|
(729.9 |
) |
|
|
(750.2 |
) |
Operating and administrative assets |
|
341.2 |
|
|
|
350.0 |
|
|
|
6,942.3 |
|
|
|
7,004.8 |
|
Goodwill |
|
221.5 |
|
|
|
221.5 |
|
Other assets |
|
410.8 |
|
|
|
392.1 |
|
Total assets |
$ |
8,957.8 |
|
|
$ |
8,906.5 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||||
Accounts payable |
$ |
315.4 |
|
|
$ |
305.3 |
|
Accrued liabilities |
|
353.9 |
|
|
|
302.3 |
|
Debt: |
|
|
|
||||
Recourse |
|
597.5 |
|
|
|
794.6 |
|
Non-recourse: |
|
|
|
||||
Wholly-owned subsidiaries |
|
4,019.6 |
|
|
|
3,819.2 |
|
Partially-owned subsidiaries |
|
1,110.3 |
|
|
|
1,140.4 |
|
|
|
5,727.4 |
|
|
|
5,754.2 |
|
Deferred income taxes |
|
1,104.2 |
|
|
|
1,103.5 |
|
Other liabilities |
|
152.9 |
|
|
|
165.7 |
|
Stockholders' equity: |
|
|
|
||||
Trinity Industries, Inc. |
|
1,065.5 |
|
|
|
1,037.1 |
|
Noncontrolling interest |
|
238.5 |
|
|
|
238.4 |
|
|
|
1,304.0 |
|
|
|
1,275.5 |
|
Total liabilities and stockholders' equity |
$ |
8,957.8 |
|
|
$ |
8,906.5 |
|
Trinity Industries, Inc. Condensed Consolidated Statements of Cash Flows (in millions) (unaudited) |
|||||||
|
Six Months Ended June 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Operating activities: |
|
|
|
||||
Net cash provided by operating activities – continuing operations |
$ |
299.7 |
|
|
$ |
140.3 |
|
Net cash used in operating activities – discontinued operations |
|
(6.0 |
) |
|
|
(5.4 |
) |
Net cash provided by operating activities |
|
293.7 |
|
|
|
134.9 |
|
|
|
|
|
||||
Investing activities: |
|
|
|
||||
Proceeds from lease portfolio sales |
|
186.7 |
|
|
|
185.7 |
|
Capital expenditures – lease fleet |
|
(232.7 |
) |
|
|
(399.7 |
) |
Capital expenditures – operating and administrative |
|
(15.9 |
) |
|
|
(20.8 |
) |
Acquisitions, net of cash acquired |
|
— |
|
|
|
(65.8 |
) |
Other investing activities |
|
6.0 |
|
|
|
8.5 |
|
Net cash used in investing activities |
|
(55.9 |
) |
|
|
(292.1 |
) |
|
|
|
|
||||
Financing activities: |
|
|
|
||||
Net proceeds from (repayments of) debt |
|
(37.7 |
) |
|
|
218.6 |
|
Shares repurchased |
|
(0.9 |
) |
|
|
— |
|
Dividends paid to common shareholders |
|
(47.2 |
) |
|
|
(43.3 |
) |
Other financing activities |
|
(22.9 |
) |
|
|
(15.8 |
) |
Net cash provided by (used in) financing activities |
|
(108.7 |
) |
|
|
159.5 |
|
Net increase in cash, cash equivalents, and restricted cash |
|
129.1 |
|
|
|
2.3 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
235.1 |
|
|
|
294.3 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
364.2 |
|
|
$ |
296.6 |
|
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), described in the footnotes to the tables below. 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, 2024 |
||||||||
|
GAAP |
|
Interest expense, net (1) |
|
Adjusted |
||||
Operating profit |
$ |
141.9 |
|
$ |
— |
|
|
$ |
141.9 |
|
|
|
|
|
|
||||
Income from continuing operations before income taxes |
$ |
75.2 |
|
$ |
(0.4 |
) |
|
$ |
74.8 |
|
|
|
|
|
|
||||
Provision (benefit) for income taxes |
$ |
17.1 |
|
$ |
(0.1 |
) |
|
$ |
17.0 |
|
|
|
|
|
|
||||
Income from continuing operations |
$ |
58.1 |
|
$ |
(0.3 |
) |
|
$ |
57.8 |
|
|
|
|
|
|
||||
Net income from continuing operations attributable to Trinity Industries, Inc. |
$ |
56.1 |
|
$ |
(0.3 |
) |
|
$ |
55.8 |
|
|
|
|
|
|
||||
Diluted weighted average shares outstanding |
|
84.1 |
|
|
|
|
84.1 |
||
|
|
|
|
|
|
||||
Diluted income from continuing operations per common share attributable to Trinity Industries, Inc. |
$ |
0.67 |
|
|
|
$ |
0.66 |
||
|
Six Months Ended June 30, 2024 |
||||||||
|
GAAP |
|
Interest expense, net (1) |
|
Adjusted |
||||
Operating profit |
$ |
257.1 |
|
$ |
— |
|
|
$ |
257.1 |
|
|
|
|
|
|
||||
Income from continuing operations before income taxes |
$ |
117.9 |
|
$ |
(0.8 |
) |
|
$ |
117.1 |
|
|
|
|
|
|
||||
Provision (benefit) for income taxes |
$ |
28.1 |
|
$ |
(0.2 |
) |
|
$ |
27.9 |
|
|
|
|
|
|
||||
Income from continuing operations |
$ |
89.8 |
|
$ |
(0.6 |
) |
|
$ |
89.2 |
|
|
|
|
|
|
||||
Net income from continuing operations attributable to Trinity Industries, Inc. |
$ |
84.1 |
|
$ |
(0.6 |
) |
|
$ |
83.5 |
|
|
|
|
|
|
||||
Diluted weighted average shares outstanding |
|
83.4 |
|
|
|
|
83.4 |
||
|
|
|
|
|
|
||||
Diluted income from continuing operations per common share attributable to Trinity Industries, Inc. |
$ |
1.01 |
|
|
|
$ |
1.00 |
||
|
Three Months Ended June 30, 2023 |
|||||||||||||||
|
GAAP |
|
Selling, engineering, and administrative expenses (2) |
|
Restructuring activities, net |
|
Interest expense, net (1) |
|
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 (2) |
|
Gains on dispositions of property – other (3) |
|
Restructuring activities, net |
|
Interest expense, net (1) |
|
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 |
|
|||||||
(1) Represents interest income accretion related to a seller-financing agreement associated with the sale of certain non-operating assets. |
||||||||||||||||||||||
(2) Represents the change in estimated fair value of additional contingent consideration associated with an acquisition. |
||||||||||||||||||||||
(3) Represents insurance recoveries in excess of net book value for assets damaged by a tornado at the Company’s rail maintenance facility in |
||||||||||||||||||||||
Adjusted Return on Equity
Adjusted Return on Equity (“Adjusted ROE”) is defined as a ratio for which (i) the numerator is calculated as income or loss from continuing operations, adjusted to exclude the effects of net income or loss attributable to noncontrolling interest, and certain other adjustments, described in the footnotes to the table below, which include certain selling, engineering, and administrative expenses; gains on dispositions of other property; and interest expense, net; and (ii) the denominator is calculated as average Trinity stockholders’ equity (which excludes noncontrolling interest). In the following table, the numerator and denominator of our Adjusted ROE calculation are reconciled to income from continuing operations and total stockholders’ equity, respectively, which are the most directly comparable GAAP financial measures. Management believes that Adjusted ROE is a useful measure to both management and investors as it provides an indication of the economic return on the Company’s investments over time. 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.
|
LTM June 30, 2024 |
|
June 30, 2023 |
||||
|
($ in millions) |
||||||
Numerator: |
|
|
|
||||
Income from continuing operations |
$ |
189.5 |
|
|
|
||
Net income attributable to noncontrolling interest |
|
(12.8 |
) |
|
|
||
Net income from continuing operations attributable to Trinity Industries, Inc. |
|
176.7 |
|
|
|
||
Adjustments (net of income taxes): |
|
|
|
||||
Selling, engineering, and administrative expenses (1) |
|
1.5 |
|
|
|
||
Gains on dispositions of property – other (2) |
|
(3.9 |
) |
|
|
||
Interest expense, net (3) |
|
(1.2 |
) |
|
|
||
Adjusted Net Income |
$ |
173.1 |
|
|
|
||
|
|
|
|
||||
Denominator: |
|
|
|
||||
Total stockholders' equity |
$ |
1,304.0 |
|
|
$ |
1,249.0 |
|
Noncontrolling interest |
|
(238.5 |
) |
|
|
(254.4 |
) |
Trinity stockholders' equity |
$ |
1,065.5 |
|
|
$ |
994.6 |
|
|
|
|
|
||||
Average total stockholders' equity |
$ |
1,276.5 |
|
|
|
||
Return on Equity (4) |
|
14.8 |
% |
|
|
||
|
|
|
|
||||
Average Trinity stockholders' equity |
$ |
1,030.1 |
|
|
|
||
Adjusted Return on Equity (5) |
|
16.8 |
% |
|
|
||
(1) Represents the change in estimated fair value of additional contingent consideration associated with an acquisition. |
|||||||
(2) Represents insurance recoveries in excess of net book value for assets damaged by a tornado at the Company’s rail maintenance facility in |
|||||||
(3) Represents interest income accretion related to a seller-financing agreement associated with the sale of certain non-operating assets. |
|||||||
(4) Return on Equity is calculated as income from continuing operations divided by average total stockholders' equity. |
|||||||
(5) Adjusted Return on Equity is calculated as adjusted net income divided by average Trinity stockholders' equity, each as defined and reconciled above. |
|||||||
Cash Flow from Operations with Net Gains on Lease Portfolio Sales
Cash flow from operations with net gains on lease portfolio sales is a non-GAAP financial measure. We believe this measure is useful to both management and investors as it provides a relevant measure of liquidity and a useful basis for assessing the breadth of the cash flow generation capabilities across our operating platform, as well as our ability to fund our operations and repay our debt. This measure is defined as net cash provided by operating activities from continuing operations as computed in accordance with GAAP, plus net gains on lease portfolio sales and is reconciled to net cash provided by operating activities from continuing operations, the most directly comparable GAAP financial measure, in the following table. 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, |
||||
|
2024 |
|
2023 |
||
Net cash provided by operating activities – continuing operations |
$ |
299.7 |
|
$ |
140.3 |
Net gains on lease portfolio sales |
|
24.8 |
|
|
43.3 |
Cash flow from operations with net gains on lease portfolio sales |
$ |
324.5 |
|
$ |
183.6 |
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, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income |
$ |
56.4 |
|
|
$ |
21.2 |
|
|
$ |
83.8 |
|
|
$ |
34.9 |
|
Less: Loss from discontinued operations, net of income taxes |
|
(1.7 |
) |
|
|
(2.3 |
) |
|
|
(6.0 |
) |
|
|
(5.4 |
) |
Income from continuing operations |
|
58.1 |
|
|
|
23.5 |
|
|
|
89.8 |
|
|
|
40.3 |
|
Interest expense |
|
74.9 |
|
|
|
69.6 |
|
|
|
147.0 |
|
|
|
134.4 |
|
Provision (benefit) for income taxes |
|
17.1 |
|
|
|
7.4 |
|
|
|
28.1 |
|
|
|
(4.1 |
) |
Depreciation and amortization expense |
|
73.8 |
|
|
|
72.8 |
|
|
|
147.2 |
|
|
|
146.8 |
|
EBITDA |
|
223.9 |
|
|
|
173.3 |
|
|
|
412.1 |
|
|
|
317.4 |
|
Selling, engineering, and administrative expenses |
|
— |
|
|
|
2.0 |
|
|
|
— |
|
|
|
2.0 |
|
Gains on dispositions of property – other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1.2 |
) |
Restructuring activities, net |
|
— |
|
|
|
(1.8 |
) |
|
|
— |
|
|
|
(2.2 |
) |
Interest income |
|
(0.4 |
) |
|
|
(0.3 |
) |
|
|
(0.8 |
) |
|
|
(0.7 |
) |
Adjusted EBITDA |
$ |
223.5 |
|
|
$ |
173.2 |
|
|
$ |
411.3 |
|
|
$ |
315.3 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240801597881/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
Source: Trinity Industries, Inc.
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