Trinity Industries, Inc. (NYSE:TRN) today announced earnings
results for the fourth quarter and full year ended
December 31, 2014, including the following significant
highlights:
- Strong fourth quarter and record
full year earnings per common diluted share of $0.86 and $4.19,
respectively
- Year-over-year fourth quarter and
full year revenue growth of 32% and 41%, respectively, and earnings
per common diluted share growth of 19% and 76%,
respectively
- All business segments report
year-over-year revenue and operating profit growth during
2014
- Rail Group receives orders for
17,770 new railcars during the fourth quarter with a record value
of over $2.1 billion resulting in an all-time high backlog of
61,035 units with a record value of $7.2 billion
- Company issues earnings guidance for
full year 2015 of between $4.00 and $4.40 per common diluted
share
Consolidated Results
Trinity Industries, Inc. reported net income attributable to
Trinity stockholders of $138.2 million, or $0.86 per common diluted
share, for the fourth quarter ended December 31, 2014. Net
income for the same quarter of 2013 was $112.8 million, or $0.72
per common diluted share. Revenues for the fourth quarter of 2014
increased 32% to a record $1.7 billion compared to revenues of $1.3
billion for the same quarter of 2013.
For the year ended December 31, 2014, the Company reported
record net income attributable to Trinity stockholders of $678.2
million, or $4.19 per common diluted share. In 2013, the Company
reported net income of $375.5 million, or $2.38 per common diluted
share. Revenues for the year ended December 31, 2014 were $6.2
billion, a 41% increase compared to revenues of $4.4 billion in
2013.
“During 2014, we utilized the strengths of our integrated
business model to achieve record financial results, with all of our
business segments reporting higher revenue and profit," said
Timothy R. Wallace, Trinity’s Chairman, CEO and President. "Our
Rail Group received a record number of orders in 2014, and its $7.2
billion order backlog provides significant production visibility.
Our Leasing Group achieved record financial results in 2014 and
generated strong earnings and cash flow from strategic railcar
leasing transactions completed during the year. We invested
over $700 million in acquisitions within our Energy Equipment
Group, which added complementary product lines that provide
long-term growth opportunities."
Business Group Results
In the fourth quarter of 2014, the Rail Group reported record
revenues and operating profit of approximately $1.1 billion and
$194.2 million, respectively, resulting in increases compared to
the fourth quarter of 2013 of 25% and 23%, respectively. The
increase in revenues and profit was due to higher deliveries,
improved pricing, and a more favorable product mix. The Rail Group
shipped 8,460 railcars and received orders for 17,770 railcars
during the fourth quarter. The Rail Group backlog increased to a
record $7.2 billion at December 31, 2014, representing a
record 61,035 railcars, compared to a backlog of $6.1 billion as of
September 30, 2014, representing 51,725 railcars.
During the fourth quarter of 2014, the Railcar Leasing and
Management Services Group reported revenues of $238.0 million
compared to revenues of $190.8 million during the fourth quarter of
2013. Operating profit for this Group was $96.6 million in the
fourth quarter of 2014 compared to operating profit of $85.5
million in the fourth quarter of 2013. The increase in revenues and
operating profit was due to higher rental rates as well as
increased railcar sales from the lease fleet. Supplemental
information for the Railcar Leasing and Management Services Group
is provided in the following tables.
During the fourth quarter, the Company sold $114.8 million of
railcars to Element Financial Corporation ("Element") under the
strategic alliance announced in 2013 with $67.8 million reported as
sales of railcars owned one year or less at the time of sale and
$47.0 million reported in the Rail Group as external revenue. With
these railcar sales, the Leasing Group has completed the sale of
the first $1 billion of leased railcars to Element and anticipates
fulfilling the $2 billion alliance in 2015.
The Inland Barge Group reported revenues for the fourth quarter
of 2014 of $167.8 million compared to revenues of $142.9 million in
the fourth quarter of 2013. Operating profit for this Group was
$25.8 million in the fourth quarter of 2014 compared to $27.0
million in the fourth quarter of 2013. The increase in revenues
compared to the same quarter last year was due to higher delivery
volumes and product mix changes. The Inland Barge Group received
orders of $130.3 million during the quarter, and as of
December 31, 2014 had a backlog of $437.9 million compared to
a backlog of $475.4 million as of September 30, 2014.
The Energy Equipment Group reported record revenues of $284.4
million in the fourth quarter of 2014 compared to revenues of
$188.5 million in the same quarter of 2013. Revenues related to
acquisitions completed in 2014 totaled $89.0 million for the fourth
quarter. Operating profit for the fourth quarter of 2014 increased
to $26.9 million compared to $17.2 million in the same quarter last
year. The backlog for structural wind towers as of
December 31, 2014 was $473.5 million compared to a backlog of
$528.6 million as of September 30, 2014.
Revenues in the Construction Products Group were $116.5 million
in the fourth quarter of 2014 compared to revenues of $117.5
million in the fourth quarter of 2013. The Group recorded an
operating loss of $0.3 million in the fourth quarter of 2014
compared to an operating profit of $7.3 million in the fourth
quarter of 2013. Revenues and operating profit decreased for the
fourth quarter of 2014 compared to the same period in 2013
primarily due to lower volumes in our Highway Products
business.
Cash and Liquidity
At December 31, 2014, the Company had cash, cash
equivalents, and short-term marketable securities of $962.9
million. When combined with capacity under committed credit
facilities, the Company had approximately $1.6 billion of available
liquidity at the end of the fourth quarter.
Share Repurchase
The Company did not repurchase any shares of common stock under
its share repurchase authorization during the quarter. During 2014,
the Company purchased approximately $31.5 million of shares of
common stock, leaving $218.5 million remaining under its current
authorization through December 31, 2015.
Convertible Notes
The Company’s $450 million convertible notes have a dilutive
impact on the calculation of earnings per share when the average
stock price for the quarter exceeds the conversion price. The
average stock price for the fourth quarter was $33.50 per share
compared to the conversion price in effect during the quarter of
$25.22 per share, the result of which added 4.4 million additional
shares to the Company’s diluted share count, reducing earnings per
share by $0.03 per share. For the full year, approximately 5.6
million shares were added to the Company’s dilutive share count,
reducing earnings per share by $0.16 per share. The Company’s
2015 earnings guidance, as discussed in the Earnings Outlook,
assumes an annual weighted average diluted share count of 156.5
million shares, which includes 4.5 million shares from the
convertible notes. The dilutive impact of the convertible notes
assumes an average annual stock price of $33.75 per share and
reduces full year 2015 earnings per share by approximately $0.12
per share.
Highway Products
Litigation
On October 20, 2014, a jury in a federal district court returned
a verdict against the Company in a False Claims Act (the “Act”)
case and awarded $175 million in damages. The jury's damages award,
to the extent it survives the Company's challenge in post-trial
motions or on appeal, is automatically trebled under the Act to
$525 million. Additionally, the district court is required to
impose civil penalties for each violation of the Act (which
penalties are not automatically trebled). The district court has
not yet entered a final judgment or determined a civil penalty
amount. The Company maintains that the allegations are without
merit and intends to vigorously defend its positions in post-trial
motions and on appeal. Pending entry of a final judgment and
completion of the Company’s post-trial and appellate activities in
this matter, the Company currently does not believe that a loss is
probable, therefore no accrual has been included in the
consolidated financial statements.
Earnings Outlook
For the full year of 2015, the Company anticipates earnings per
common diluted share of between $4.00 and $4.40 compared to full
year earnings per common diluted share of $4.19 in 2014. The
Company expects the level of quarterly earnings per share in 2015
to be relatively consistent throughout the year. As a reminder,
first quarter 2014 results included $0.72 per common diluted share
of earnings related to sales of new and existing leased railcars to
Element. As a result, we do expect first quarter 2015 earnings per
common diluted share to be below last year's level.
Actual results in 2015 may differ from present expectations and
could be impacted by a number of factors including, among others,
fluctuations in prices of commodities that our customers produce
and transport; potential costs or timing of pending tank car
regulatory changes; expenses related to current and potential
litigation in our Highway Products business; various labor
situations in the U.S., including those causing the temporary
shut-down of oil refineries as well as interruptions of imports and
exports on the West Coast; the operating leverage and efficiencies
that can be achieved by the Company's manufacturing businesses; the
level of sales and profitability of railcars; and the impact of
weather conditions on our operations and delivery schedules.
Conference Call
Trinity will hold a conference call at 11:00 a.m. Eastern on
February 19, 2015 to discuss its fourth quarter and full year
results. To listen to the call, please visit the Investor Relations
section of the Trinity Industries website, www.trin.net. An audio
replay may be accessed through the Company’s website or by dialing
(402) 220-0116 until 11:59 p.m. Eastern on February 26, 2015.
Trinity Industries, Inc., headquartered in Dallas, Texas, is a
diversified industrial company that owns market-leading businesses
which provide 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,” “believes,” “estimates,”
“expects,” “intends,” “forecasts,” “may,” “will,” “should,”
“guidance” 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 EndedDecember 31,
2014 2013 Revenues $
1,661.4 $ 1,256.0 Operating costs: Cost of revenues 1,275.3 962.7
Selling, engineering, and administrative expenses 110.6 80.2
(Gain)/loss on disposition of property, plant, and equipment: Net
gains on lease fleet sales (2.1 ) (10.8 ) Other 1.1
(0.5 ) 1,384.9 1,031.6 Operating
profit 276.5 224.4 Interest expense, net 51.6 45.1 Other (income)
expense (1.8 ) (0.5 ) Income before income taxes
226.7 179.8 Provision for income taxes 80.3
60.9 Net income from continuing operations 146.4 118.9 Net
gain on sale of discontinued operations — — Net income (loss) from
discontinued operations (0.1 ) 0.4 Net income
146.3 119.3 Net income (loss) attributable to noncontrolling
interest 8.1 6.5 Net income
attributable to Trinity Industries, Inc. $ 138.2 $ 112.8
Net income attributable to Trinity Industries, Inc.
per common share: Basic Continuing operations $ 0.89 $ 0.72
Discontinued operations — — $ 0.89
$ 0.72 Diluted Continuing operations $ 0.86 $ 0.72
Discontinued operations — — $ 0.86
$ 0.72 Weighted average number of shares outstanding:
Basic 151.2 151.8 Diluted 155.7 151.9
All share and per share information has been retroactively
adjusted to reflect the 2-for-1 stock split completed during the
quarter ended June 30, 2014. 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)
Year EndedDecember 31, 2014
2013 Revenues $ 6,170.0 $
4,365.3 Operating costs: Cost of revenues 4,619.8 3,322.3 Selling,
engineering, and administrative expenses 403.6 291.3 (Gain)/loss on
disposition of property, plant, and equipment: Net gains on lease
fleet sales (92.3 ) (20.4 ) Other (12.1 ) (0.8 )
4,919.0 3,592.4 Operating profit
1,251.0 772.9 Interest expense, net 191.5 185.2 Other (income)
expense (4.6 ) (2.8 ) Income before income taxes
1,064.1 590.5 Provision for income taxes 354.8
204.4 Net income from continuing operations 709.3 386.1 Net
gain on sale of discontinued operations — 7.1 Net income (loss)
from discontinued operations — (0.8 ) Net
income 709.3 392.4 Net income (loss) attributable to noncontrolling
interest 31.1 16.9 Net income
attributable to Trinity Industries, Inc. $ 678.2 $ 375.5
Net income attributable to Trinity Industries, Inc.
per common share: Basic Continuing operations $ 4.35 $ 2.34
Discontinued operations — 0.04 $ 4.35
$ 2.38 Diluted Continuing operations $ 4.19 $ 2.34
Discontinued operations — 0.04 $ 4.19
$ 2.38 Weighted average number of shares outstanding:
Basic 151.0 152.8 Diluted 156.7 152.9
All share and per share information has been retroactively
adjusted to reflect the 2-for-1 stock split completed during the
quarter ended June 30, 2014. 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 EndedDecember 31,
Revenues: 2014
2013 Rail Group $ 1,067.4 $ 855.5 Construction
Products Group 116.5 117.5 Inland Barge Group 167.8 142.9 Energy
Equipment Group 284.4 188.5 Railcar Leasing and Management Services
Group 238.0 190.8 All Other 30.2 23.6
Segment Totals before Eliminations 1,904.3 1,518.8 Eliminations -
lease subsidiary (145.9 ) (196.0 ) Eliminations - other
(97.0 ) (66.8 ) Consolidated Total $ 1,661.4 $
1,256.0
Three Months EndedDecember 31,
Operating profit (loss): 2014
2013 Rail Group $ 194.2 $ 157.4 Construction Products
Group (0.3 ) 7.3 Inland Barge Group 25.8 27.0 Energy Equipment
Group 26.9 17.2 Railcar Leasing and Management Services Group 96.6
85.5 All Other (14.3 ) (5.7 ) Segment Totals before
Eliminations and Corporate Expenses 328.9 288.7 Corporate (29.5 )
(23.5 ) Eliminations - lease subsidiary (22.6 ) (40.0 )
Eliminations - other (0.3 ) (0.8 ) Consolidated Total
$ 276.5 $ 224.4
Trinity Industries,
Inc. Condensed Segment Data
(in millions)
(unaudited)
Year EndedDecember 31, Revenues:
2014 2013 Rail Group $
3,816.8 $ 2,867.5 Construction Products Group 551.7 525.0 Inland
Barge Group 638.5 576.7 Energy Equipment Group 992.3 665.4 Railcar
Leasing and Management Services Group 1,118.3 645.4 All Other
110.4 86.6 Segment Totals before
Eliminations 7,228.0 5,366.6 Eliminations - lease subsidiary (710.1
) (756.5 ) Eliminations - other (347.9 ) (244.8 )
Consolidated Total $ 6,170.0 $ 4,365.3
Year
EndedDecember 31, Operating profit (loss):
2014 2013 Rail Group $ 724.1 $
489.7 Construction Products Group 65.4 52.6 Inland Barge Group
114.4 96.0 Energy Equipment Group 108.1 61.4 Railcar Leasing and
Management Services Group 516.3 296.8 All Other (25.6 )
(13.7 ) Segment Totals before Eliminations and Corporate
Expenses 1,502.7 982.8 Corporate (119.0 ) (73.4 ) Eliminations -
lease subsidiary (133.1 ) (135.4 ) Eliminations - other 0.4
(1.1 ) Consolidated Total $ 1,251.0 $ 772.9
Trinity Industries, Inc. Leasing
Group
Condensed Results of Operations
(unaudited)
Three Months EndedDecember 31, Year
EndedDecember 31, 2014
2013 Percent 2014
2013 Percent ($
in millions) Change ($ in millions) Change
Revenues: Leasing and management $ 162.8 $ 151.3 7.6 % $
632.0 $ 586.9 7.7 % Sales of railcars owned one year or less at the
time of sale 75.2 39.5 * 486.3
58.5 * Total revenues $ 238.0 $ 190.8 24.7 $
1,118.3 $ 645.4 73.3 Operating profit: Leasing and
management $ 74.1 $ 69.1 7.2 $ 287.9 $ 267.3 7.7 Railcar sales:
Railcars owned one year or less at the time of sale 20.4 5.6 136.1
9.1 Railcars owned more than one year at the time of sale
2.1 10.8 92.3 20.4
Total operating profit $ 96.6 $ 85.5 13.0 $ 516.3 $ 296.8 74.0
Operating profit margin: Leasing and management 45.5 % 45.7
% 45.6 % 45.5 % Railcar sales * * * * Total operating profit margin
40.6 % 44.8 % 46.2 % 46.0 % Selected expense information(1):
Depreciation $ 32.9 $ 33.2 (0.9 ) $ 130.0 $ 129.0 0.8 Maintenance $
20.1 $ 17.7 13.6 $ 78.9 $ 71.5 10.3 Rent $ 13.2 $ 13.3 (0.8 ) $
52.9 $ 53.3 (0.8 ) Interest: External $ 38.8 $ 37.3 $ 153.3 $ 153.5
Intercompany — — —
3.8 Total interest expense $ 38.8 $ 37.3 4.0 $ 153.3 $ 157.3
(2.5 )
December 31,2014 December
31,2013 Leasing portfolio information: Portfolio size
(number of railcars) 75,930 75,685 Portfolio utilization 99.5 %
99.5 %
* Not meaningful
(1) Depreciation, maintenance, 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 profits 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.
Intercompany interest expense is eliminated in consolidation and
arises from Trinity’s previous ownership of a portion of TRIP
Holdings’ Senior Secured Notes, which notes were retired in full in
May 2013.
Trinity Industries, Inc. Condensed
Consolidated Balance Sheets
(in millions)
(unaudited)
December 31,2014 December
31,2013 Cash and cash equivalents $ 887.9 $ 428.5
Short-term marketable securities 75.0 149.7 Receivables, net of
allowance 405.3 365.0 Income tax receivable 58.6 7.7 Inventories
1,068.4 814.7 Restricted cash 234.7 260.7 Net property, plant, and
equipment 4,902.9 4,770.6 Goodwill 773.2 278.2 Other assets
327.8 238.3 $ 8,733.8 $ 7,313.4 Accounts payable $
295.4 $ 216.3 Accrued liabilities 709.6 567.4 Debt, net of
unamortized discount of $60.0 and $74.1 3,553.0 2,989.8 Deferred
income 36.4 40.8 Deferred income taxes 632.6 650.7 Other
liabilities 109.4 99.3 Stockholders' equity 3,397.4
2,749.1 $ 8,733.8 $ 7,313.4
Trinity Industries,
Inc. Additional Balance Sheet Information
(in millions)
(unaudited)
December 31,2014
December 31,2013 Property, Plant, and
Equipment Corporate/Manufacturing: Property, plant, and
equipment $ 1,681.7 $ 1,418.9 Accumulated depreciation
(820.7 ) (748.3 ) 861.0 670.6
Leasing: Wholly-owned subsidiaries: Machinery and other 10.7 10.3
Equipment on lease 3,189.6 3,509.1 Accumulated depreciation
(601.1 ) (554.8 ) 2,599.2 2,964.6
Partially-owned subsidiaries: Equipment on lease 2,261.2
1,887.2 Accumulated depreciation (261.3 ) (202.1 )
1,999.9 1,685.1 Net deferred
profit on railcars sold to the Leasing Group (557.2 )
(549.7 ) $ 4,902.9 $ 4,770.6
Trinity
Industries, Inc. Additional Balance Sheet Information
(in millions)
(unaudited)
December 31,2014
December 31,2013
Debt Corporate - Recourse: Revolving credit facility $ — $ —
Senior notes due 2024, net of unamortized discount of $0.4 and $-
399.6 — Convertible subordinated notes, net of unamortized discount
of $59.6 and $74.1 389.9 375.9 Other 0.7 0.9
790.2 376.8 Leasing: Wholly-owned subsidiaries: Recourse:
Capital lease obligations 39.1 42.2 39.1
42.2 Non-recourse: Secured railcar equipment notes 723.3
766.6 Warehouse facility 120.6 152.0 Promissory notes 363.9
396.1 1,207.8 1,314.7 Partially-owned
subsidiaries - Non-recourse: Secured railcar equipment notes
1,515.9 1,256.1 1,515.9 1,256.1 $ 3,553.0 $
2,989.8
Trinity Industries, Inc. Additional
Balance Sheet Information
(in millions)
(unaudited)
December 31,2014 December
31,2013 Leasing Debt Summary Total Recourse Debt
$ 39.1 $ 42.2 Total Non-Recourse Debt(1) 2,723.7
2,570.8 $ 2,762.8 $ 2,613.0 Total
Leasing Debt Wholly-owned subsidiaries $ 1,246.9 $ 1,356.9
Partially-owned subsidiaries 1,515.9 1,256.1
$ 2,762.8 $ 2,613.0 Equipment on Lease(1)
Wholly-owned subsidiaries $ 2,599.2 $ 2,964.6 Partially-owned
subsidiaries 1,999.9 1,685.1 $ 4,599.1
$ 4,649.7 Total Leasing Debt as a % of Equipment on
Lease Wholly-owned subsidiaries 48.0 % 45.8 % Partially-owned
subsidiaries 75.8 % 74.5 % Combined 60.1 % 56.2 %
(1) Excludes net deferred profit on railcars sold to the Leasing
Group.
Trinity Industries, Inc. Condensed Consolidated
Cash Flow Statements
(in millions)
(unaudited)
Year EndedDecember 31, 2014
2013 Operating
activities: Net income $ 709.3 $ 392.4 Adjustments to reconcile
net income to net cash provided by operating activities: Income
from discontinued operations — (6.3 ) Depreciation and amortization
244.6 211.5 Net gains on sales of railcars owned more than one year
at the time of sale (92.3 ) (20.4 ) Other 38.2 107.9 Changes in
assets and liabilities: (Increase) decrease in receivables (56.4 )
17.2 (Increase) decrease in inventories (186.3 ) (95.6 ) Increase
(decrease) in accounts payable and accrued liabilities 142.8 101.4
Other 19.3 (45.9 ) Net cash provided by
operating activities 819.2 662.2
Investing activities: Proceeds from sales of railcars owned
more than one year at the time of sale 265.8 131.6 Proceeds from
disposition of property, plant, and equipment 23.0 3.7 Capital
expenditures - leasing, net of sold railcars owned one year or less
with a net cost of $350.2 and $49.4 (245.3 ) (581.1 ) Capital
expenditures - manufacturing and other (219.3 ) (149.9 ) (Increase)
decrease in short-term marketable securities 74.7 (149.7 )
Acquisitions (714.4 ) (73.2 ) Other 0.8 0.6
Net cash required by investing activities (814.7 )
(818.0 )
Financing activities: Payments to retire
debt (186.6 ) (262.1 ) Proceeds from issuance of debt 727.3 175.0
Shares repurchased (36.5 ) (103.2 ) Dividends paid to common
shareholders (54.4 ) (39.3 ) Purchase of shares to satisfy employee
tax on vested stock (38.3 ) (9.6 ) Proceeds from sale of interests
in partially-owned leasing subsidiaries — 296.7 Repurchase of
noncontrolling interest — (84.0 ) Contributions from noncontrolling
interest 49.6 50.0 Distributions to noncontrolling interest (28.2 )
(10.0 ) (Increase) decrease in restricted cash 1.0 (12.5 ) Other
21.0 10.3 Net cash provided by
financing activities 454.9 11.3 Net
increase (decrease) in cash and cash equivalents 459.4 (144.5 )
Cash and cash equivalents at beginning of period 428.5
573.0 Cash and cash equivalents at end of
period $ 887.9 $ 428.5
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. All share and per share information has been
retroactively adjusted to reflect the 2-for-1 stock split completed
during the quarter ended June 30, 2014.
Three Months EndedDecember 31, 2014
Three Months EndedDecember 31, 2013 Income
Average Income Average (Loss) Shares EPS
(Loss) Shares EPS Net income from continuing operations $ 146.4 $
118.9 Less: net income from continuing operations attributable to
noncontrolling interest 8.1 6.5 Net
income from continuing operations attributable to Trinity
Industries, Inc. 138.3 112.4 Unvested restricted share
participation (4.4 ) (3.7 ) Net income from
continuing operations attributable to Trinity Industries, Inc. -
basic 133.9 151.2 $ 0.89 108.7 151.8 $ 0.72 Effect of dilutive
securities: Stock options — 0.1 — 0.1 Convertible subordinated
notes 0.1 4.4 — — Net income from
continuing operations attributable to Trinity Industries, Inc. -
diluted $ 134.0 155.7 $ 0.86 $ 108.7 151.9 $ 0.72
Net income (loss) from discontinued operations, net of taxes
$ (0.1 ) $ 0.4 Unvested restricted share participation —
— Net income (loss) from discontinued
operations, net of taxes - basic (0.1 ) 151.2 $ — 0.4 151.8 $ —
Effect of dilutive securities: Stock options — 0.1 — 0.1
Convertible subordinated notes — 4.4 —
— Net income (loss) from discontinued operations, net of taxes -
diluted $ (0.1 ) 155.7 $ — $ 0.4 151.9 $ —
Year
EndedDecember 31, 2014 Year EndedDecember 31,
2013 Income Average Income Average (Loss) Shares EPS (Loss)
Shares EPS Net income from continuing operations $ 709.3 $ 386.1
Less: net income from continuing operations attributable to
noncontrolling interest 31.1 16.9 Net
income from continuing operations attributable to Trinity
Industries, Inc. 678.2 369.2 Unvested restricted share
participation (22.1 ) (12.0 ) Net income from
continuing operations attributable to Trinity Industries, Inc. -
basic 656.1 151.0 $ 4.35 357.2 152.8 $ 2.34 Effect of dilutive
securities: Stock options — 0.1 — 0.1 Convertible subordinated
notes 0.7 5.6 — — Net income from
continuing operations attributable to Trinity Industries, Inc. -
diluted $ 656.8 156.7 $ 4.19 $ 357.2 152.9 $ 2.34
Net income (loss) from discontinued operations, net of taxes
$ — $ 6.3 Unvested restricted share participation —
(0.2 ) Net income (loss) from discontinued operations, net
of taxes - basic — 151.0 $ — 6.1 152.8 $ 0.04 Effect of dilutive
securities: Stock options — 0.1 — 0.1 Convertible subordinated
notes — 5.6 — — Net income (loss) from
discontinued operations, net of taxes - diluted $ — 156.7 $
— $ 6.1 152.9 $ 0.04
Trinity Industries, Inc.Reconciliation of
EBITDA(in millions)(unaudited)
“EBITDA” is defined as income (loss) from continuing operations
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 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 EndedDecember 31,
2014 2013 Net income from
continuing operations $ 146.4 $ 118.9 Add: Interest expense 52.0
45.8 Provision for income taxes 80.3 60.9 Depreciation and
amortization expense 73.1 55.3 Earnings from
continuing operations before interest expense, income taxes, and
depreciation and amortization expense $ 351.8 $ 280.9
Year EndedDecember 31, 2014
2013 Net income from continuing operations $
709.3 $ 386.1 Add: Interest expense 193.4 187.3 Provision for
income taxes 354.8 204.4 Depreciation and amortization expense
244.6 211.5 Earnings from continuing
operations before interest expense, income taxes, and depreciation
and amortization expense $ 1,502.1 $ 989.3
Trinity Industries, Inc.Investor Contact:Jessica Greiner,
214-631-4420Director of Investor RelationsorMedia
Contact:Jack Todd, 214-589-8909
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