10/31/2024 | Press release | Distributed by Public on 10/31/2024 07:24
Three Months Ended September 30, |
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2024 | 2023 | Year over Year - Comparison | |||
($ in millions, except per share amounts) | |||||
Revenues | $ | 798.8 | $ | 821.3 |
Lower external deliveries in the Rail Products Group, partially offset by favorable pricing and a higher volume of external repairs, as well as improved lease rates and net additions to the lease fleet in the Leasing Group
|
Operating profit
|
$ | 122.4 | $ | 100.2 |
Improved lease rates and higher gains on lease portfolio sales in the Leasing Group, and improved efficiencies in the Rail Products Group, partially offset by lower external deliveries in the Rail Products Group
|
Interest expense, net | $ | 67.4 | $ | 68.8 | |
Net income from continuing operations attributable to Trinity Industries, Inc. | $ | 36.7 | $ | 24.5 | |
EBITDA (1)
|
$ | 200.9 | $ | 177.5 | |
Effective tax expense rate | 27.7 | % | 18.6 | % | State tax law changes enacted in Q3 2023 |
Diluted EPS - GAAP | $ | 0.44 | $ | 0.29 | |
Diluted EPS - Adjusted (1)
|
$ | 0.43 | $ | 0.26 | |
Nine Months Ended September 30, |
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2024 | 2023 | Year over Year - Comparison | |||
(in millions) | |||||
Net cash provided by operating activities - continuing operations | $ | 383.5 | $ | 215.8 | Higher external deliveries and working capital improvements |
Cash flow from operations with net gains on lease portfolio sales (1)
|
$ | 419.7 | $ | 262.2 | |
Net fleet investment | $ | 86.5 | $ | 237.5 | Timing of fleet additions |
Returns of capital to stockholders | $ | 77.2 | $ | 64.7 |
Three Months Ended September 30, |
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2024 | 2023 | Year over Year - Comparison | |||
($ in millions) | |||||
Railcar Leasing and Services Group | |||||
Revenues | $ | 289.5 | $ | 261.7 |
Favorable pricing and a higher volume of external repairs, as well as improved lease rates and net additions to the lease fleet
|
Operating profit | $ | 115.2 | $ | 95.8 |
Improved lease rates and net additions to the lease fleet, higher gains on lease portfolio sales, as well as favorable pricing and a higher volume of external repairs
|
Operating profit margin | 39.8 | % | 36.6 | % | |
Gains on lease portfolio sales | $ | 11.4 | $ | 3.1 | |
Fleet utilization (1)
|
96.6 | % | 98.1 | % | |
FLRD (2)
|
+28.4 | % | +26.6 | % | Continued strength in current lease rates |
Owned lease fleet (in units) (1)
|
109,555 | 109,055 | |||
Investor-owned lease fleet (in units) | 34,285 | 33,025 | |||
Rail Products Group | |||||
Revenues | $ | 603.2 | $ | 624.1 | Lower volume of sustainable railcar conversions, partially offset by the mix of railcars sold |
Operating profit | $ | 48.9 | $ | 29.4 | Improved labor and operational efficiencies and the mix of railcars sold |
Operating profit margin | 8.1 | % | 4.7 | % | |
New railcars: | |||||
Deliveries (in units) | 4,360 | 4,325 | |||
Orders (in units) | 1,810 | 3,200 | |||
Order value | $ | 201.4 | $ | 401.5 | |
Backlog value | $ | 2,364.5 | $ | 3,598.4 |
|
Sustainable railcar conversions: | |||||
Deliveries (in units) | 170 | 620 | |||
Backlog (in units) | 75 | 1,540 | |||
Backlog value | $ | 6.5 | $ | 124.4 | |
Eliminations | |||||
Eliminations - revenues | $ | (93.9) | $ | (64.5) | |
Eliminations - operating profit | $ | (8.6) | $ | 0.2 | |
Corporate and other | |||||
Selling, engineering, and administrative expenses | $ | 33.1 | $ | 25.2 |
Higher employee-related costs, including higher incentive-based compensation
|
September 30, 2024 | December 31, 2023 | ||||
Loan-to-value ratio | |||||
Wholly-owned subsidiaries | 68.2 | % | 64.4 | % |
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 |
Three Months Ended September 30, |
Nine Months Ended September 30, |
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2024 | 2023 | 2024 | 2023 | |||||
Revenues | $ | 798.8 | $ | 821.3 | $ | 2,449.8 | $ | 2,185.4 |
Operating costs: | ||||||||
Cost of revenues | 629.3 | 679.5 | 1,936.6 | 1,819.2 | ||||
Selling, engineering, and administrative expenses | 60.5 | 49.1 | 174.1 | 153.3 | ||||
Gains on dispositions of property: | ||||||||
Lease portfolio sales | 11.4 | 3.1 | 36.2 | 46.4 | ||||
Other | 2.0 | 4.4 | 4.2 | 6.8 | ||||
Restructuring activities, net | - | - | - | (2.2) | ||||
676.4 | 721.1 | 2,070.3 | 1,917.1 | |||||
Operating profit | 122.4 | 100.2 | 379.5 | 268.3 | ||||
Interest expense, net | 67.4 | 68.8 | 206.6 | 197.8 | ||||
Other, net | (1.4) | (0.9) | (1.4) | 2.0 | ||||
Income from continuing operations before income taxes | 56.4 | 32.3 | 174.3 | 68.5 | ||||
Provision (benefit) for income taxes: | ||||||||
Current | 18.3 | 22.2 | 45.2 | 26.2 | ||||
Deferred | (2.7) | (16.2) | (1.5) | (24.3) | ||||
15.6 | 6.0 | 43.7 | 1.9 | |||||
Income from continuing operations | 40.8 | 26.3 | 130.6 | 66.6 | ||||
Loss from discontinued operations, net of income taxes | (5.3) | (2.7) | (11.3) | (8.1) | ||||
Net income | 35.5 | 23.6 | 119.3 | 58.5 | ||||
Net income attributable to noncontrolling interest | 4.1 | 1.8 | 9.8 | 15.3 | ||||
Net income attributable to Trinity Industries, Inc. | $ | 31.4 | $ | 21.8 | $ | 109.5 | $ | 43.2 |
Basic earnings per common share: | ||||||||
Income from continuing operations | $ | 0.45 | $ | 0.30 | $ | 1.48 | $ | 0.63 |
Loss from discontinued operations | (0.07) | (0.03) | (0.14) | (0.10) | ||||
Basic net income attributable to Trinity Industries, Inc. | $ | 0.38 | $ | 0.27 | $ | 1.34 | $ | 0.53 |
Diluted earnings per common share: | ||||||||
Income from continuing operations | $ | 0.44 | $ | 0.29 | $ | 1.44 | $ | 0.62 |
Loss from discontinued operations | (0.07) | (0.03) | (0.13) | (0.10) | ||||
Diluted net income attributable to Trinity Industries, Inc. | $ | 0.37 | $ | 0.26 | $ | 1.31 | $ | 0.52 |
Weighted average number of shares outstanding: | ||||||||
Basic | 82.2 | 81.6 | 81.9 | 81.2 | ||||
Diluted | 84.1 | 83.5 | 83.9 | 83.5 |
September 30, 2024 | December 31, 2023 | |||
ASSETS | ||||
Cash and cash equivalents | $ | 222.4 | $ | 105.7 |
Receivables, net of allowance | 413.8 | 363.5 | ||
Income tax receivable | 5.0 | 5.2 | ||
Inventories | 549.1 | 684.3 | ||
Restricted cash | 110.0 | 129.4 | ||
Property, plant, and equipment, net: | ||||
Railcars in our lease fleet: | ||||
Wholly-owned subsidiaries | 5,878.1 | 5,931.8 | ||
Partially-owned subsidiaries | 1,432.0 | 1,473.2 | ||
Deferred profit on railcar products sold | (727.4) | (750.2) | ||
Operating and administrative assets | 345.9 | 350.0 | ||
6,928.6 | 7,004.8 | |||
Goodwill | 221.5 | 221.5 | ||
Other assets | 392.5 | 392.1 | ||
Total assets | $ | 8,842.9 | $ | 8,906.5 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accounts payable | $ | 270.2 | $ | 305.3 |
Accrued liabilities | 325.8 | 302.3 | ||
Debt: | ||||
Recourse | 597.7 | 794.6 | ||
Non-recourse: | ||||
Wholly-owned subsidiaries | 4,007.4 | 3,819.2 | ||
Partially-owned subsidiaries | 1,094.6 | 1,140.4 | ||
5,699.7 | 5,754.2 | |||
Deferred income taxes | 1,096.8 | 1,103.5 | ||
Other liabilities | 151.9 | 165.7 | ||
Stockholders' equity: | ||||
Trinity Industries, Inc. | 1,057.4 | 1,037.1 | ||
Noncontrolling interest | 241.1 | 238.4 | ||
1,298.5 | 1,275.5 | |||
Total liabilities and stockholders' equity | $ | 8,842.9 | $ | 8,906.5 |
Nine Months Ended September 30, |
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2024 | 2023 | |||
Operating activities: | ||||
Net cash provided by operating activities - continuing operations | $ | 383.5 | $ | 215.8 |
Net cash used in operating activities - discontinued operations | (11.3) | (8.1) | ||
Net cash provided by operating activities | 372.2 | 207.7 | ||
Investing activities: | ||||
Proceeds from lease portfolio sales | 253.7 | 245.8 | ||
Capital expenditures - lease fleet | (340.2) | (483.3) | ||
Capital expenditures - operating and administrative | (32.3) | (29.4) | ||
Acquisitions, net of cash acquired | - | (66.2) | ||
Other investing activities | 13.6 | 16.8 | ||
Net cash used in investing activities | (105.2) | (316.3) | ||
Financing activities: | ||||
Net proceeds from (repayments of) debt | (68.6) | 165.3 | ||
Shares repurchased | (6.9) | - | ||
Dividends paid to common shareholders | (70.1) | (64.7) | ||
Other financing activities | (24.1) | (19.6) | ||
Net cash provided by (used in) financing activities | (169.7) | 81.0 | ||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 97.3 | (27.6) | ||
Cash, cash equivalents, and restricted cash at beginning of period | 235.1 | 294.3 | ||
Cash, cash equivalents, and restricted cash at end of period | $ | 332.4 | $ | 266.7 |
Three Months Ended September 30, 2024 | ||||||
GAAP |
Interest expense, net (1)
|
Adjusted | ||||
Operating profit | $ | 122.4 | $ | - | $ | 122.4 |
Income from continuing operations before income taxes | $ | 56.4 | $ | (0.4) | $ | 56.0 |
Provision (benefit) for income taxes | $ | 15.6 | $ | (0.1) | $ | 15.5 |
Income from continuing operations | $ | 40.8 | $ | (0.3) | $ | 40.5 |
Net income from continuing operations attributable to Trinity Industries, Inc. | $ | 36.7 | $ | (0.3) | $ | 36.4 |
Diluted weighted average shares outstanding | 84.1 | 84.1 | ||||
Diluted income from continuing operations per common share attributable to Trinity Industries, Inc. | $ | 0.44 | $ | 0.43 |
Nine Months Ended September 30, 2024 | ||||||
GAAP |
Interest expense, net (1)
|
Adjusted | ||||
Operating profit | $ | 379.5 | $ | - | $ | 379.5 |
Income from continuing operations before income taxes | $ | 174.3 | $ | (1.2) | $ | 173.1 |
Provision (benefit) for income taxes | $ | 43.7 | $ | (0.3) | $ | 43.4 |
Income from continuing operations | $ | 130.6 | $ | (0.9) | $ | 129.7 |
Net income from continuing operations attributable to Trinity Industries, Inc. | $ | 120.8 | $ | (0.9) | $ | 119.9 |
Diluted weighted average shares outstanding | 83.9 | 83.9 | ||||
Diluted income from continuing operations per common share attributable to Trinity Industries, Inc. | $ | 1.44 | $ | 1.43 |
Three Months Ended September 30, 2023 | ||||||||
GAAP |
Gains on dispositions of property - other (2)
|
Interest expense, net (1)
|
Adjusted | |||||
Operating profit | $ | 100.2 | $ | (3.7) | $ | - | $ | 96.5 |
Income from continuing operations before income taxes | $ | 32.3 | $ | (3.7) | $ | (0.4) | $ | 28.2 |
Provision (benefit) for income taxes | $ | 6.0 | $ | (0.8) | $ | (0.1) | $ | 5.1 |
Income from continuing operations | $ | 26.3 | $ | (2.9) | $ | (0.3) | $ | 23.1 |
Net income from continuing operations attributable to Trinity Industries, Inc. | $ | 24.5 | $ | (2.9) | $ | (0.3) | $ | 21.3 |
Diluted weighted average shares outstanding | 83.5 | 83.5 | ||||||
Diluted income from continuing operations per common share attributable to Trinity Industries, Inc. | $ | 0.29 | $ | 0.26 |
Nine Months Ended September 30, 2023 | ||||||||||||
GAAP |
Selling, engineering, and administrative expenses (3)
|
Gains on dispositions of property - other (2)
|
Restructuring activities, net |
Interest expense, net (1)
|
Adjusted | |||||||
Operating profit | $ | 268.3 | $ | 2.0 | $ | (4.9) | $ | (2.2) | $ | - | $ | 263.2 |
Income from continuing operations before income taxes | $ | 68.5 | $ | 2.0 | $ | (4.9) | $ | (2.2) | $ | (1.1) | $ | 62.3 |
Provision (benefit) for income taxes | $ | 1.9 | $ | 0.5 | $ | (1.2) | $ | (0.6) | $ | (0.3) | $ | 0.3 |
Income from continuing operations | $ | 66.6 | $ | 1.5 | $ | (3.7) | $ | (1.6) | $ | (0.8) | $ | 62.0 |
Net income from continuing operations attributable to Trinity Industries, Inc. | $ | 51.3 | $ | 1.5 | $ | (3.7) | $ | (1.6) | $ | (0.8) | $ | 46.7 |
Diluted weighted average shares outstanding | 83.5 | 83.5 | ||||||||||
Diluted income from continuing operations per common share attributable to Trinity Industries, Inc. | $ | 0.62 | $ | 0.56 |
LTM
September 30, 2024
|
September 30, 2023 | |||
($ in millions) | ||||
Numerator: | ||||
Income from continuing operations | $ | 204.0 | ||
Net income attributable to noncontrolling interest | (15.1) | |||
Net income from continuing operations attributable to Trinity Industries, Inc. | 188.9 | |||
Adjustments (net of income taxes): | ||||
Selling, engineering, and administrative expenses (1)
|
1.5 | |||
Gains on dispositions of property - other (2)
|
(1.0) | |||
Interest expense, net (3)
|
(1.2) | |||
Adjusted Net Income | $ | 188.2 | ||
Denominator: | ||||
Total stockholders' equity | $ | 1,298.5 | $ | 1,253.4 |
Noncontrolling interest | (241.1) | (252.6) | ||
Trinity stockholders' equity | $ | 1,057.4 | $ | 1,000.8 |
Average total stockholders' equity | $ | 1,276.0 | ||
Return on Equity (4)
|
16.0 | % | ||
Average Trinity stockholders' equity | $ | 1,029.1 | ||
Adjusted Return on Equity (5)
|
18.3 | % |
Nine Months Ended September 30, |
||||
2024 | 2023 | |||
Net cash provided by operating activities - continuing operations | $ | 383.5 | $ | 215.8 |
Net gains on lease portfolio sales | 36.2 | 46.4 | ||
Cash flow from operations with net gains on lease portfolio sales
|
$ | 419.7 | $ | 262.2 |
Three Months Ended September 30, |
Nine Months Ended September 30, |
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2024 | 2023 | 2024 | 2023 | |||||
Net income | $ | 35.5 | $ | 23.6 | $ | 119.3 | $ | 58.5 |
Less: Loss from discontinued operations, net of income taxes | (5.3) | (2.7) | (11.3) | (8.1) | ||||
Income from continuing operations | 40.8 | 26.3 | 130.6 | 66.6 | ||||
Interest expense | 71.5 | 72.1 | 218.5 | 206.5 | ||||
Provision (benefit) for income taxes | 15.6 | 6.0 | 43.7 | 1.9 | ||||
Depreciation and amortization expense | 73.0 | 73.1 | 220.2 | 219.9 | ||||
EBITDA
|
200.9 | 177.5 | 613.0 | 494.9 | ||||
Selling, engineering, and administrative expenses | - | - | - | 2.0 | ||||
Gains on dispositions of property - other | - | (3.7) | - | (4.9) | ||||
Restructuring activities, net | - | - | - | (2.2) | ||||
Interest income | (0.4) | (0.4) | (1.2) | (1.1) | ||||
Adjusted EBITDA | $ | 200.5 | $ | 173.4 | $ | 611.8 | $ | 488.7 |