DALLAS, Feb. 18 /PRNewswire-FirstCall/ -- Trinity Industries, Inc.
(NYSE: TRN) today reported net income for the fourth quarter ended
December 31, 2008 of $44.8 million, or $0.58 per common diluted
share compared with net income of $78.3 million, or $0.97 per
common diluted share for the same quarter a year ago. The fourth
quarter of 2008 included a negative impact of $0.04 per common
diluted share resulting from the loss of tax deductions allowed for
domestic manufacturing companies in prior years. The Company will
be carrying back its 2008 taxable loss to prior years. As a result,
the Company expects to receive a tax refund of $98.7 million during
2009. This is reflected on the consolidated balance sheet as an
income tax receivable. Revenues for the fourth quarter of 2008 were
$883.8 million compared with revenues of $1,103.3 million for the
same quarter of 2007. For the year ended December 31, 2008, the
Company reported earnings from continuing operations of $287.3
million, or $3.61 per common diluted share, compared with earnings
from continuing operations of $293.8 million, or $3.65 per common
diluted share, for 2007. For the year ended December 31, 2008, the
Company reported net income of $285.8 million, or $3.59 per common
diluted share, compared with net income of $293.1 million, or $3.65
per common diluted share, for 2007. Revenues for the year ended
December 31, 2008 were a Company-record $3,882.8 million, compared
with $3,832.8 million for 2007. "Our fourth quarter results
demonstrated the positive aspects of the diversification of our
portfolio of businesses during a tough economy," said Timothy R.
Wallace, Trinity's Chairman, CEO, and President. As previously
reported, TrinityRail(R) shipped approximately 7,050 railcars and
received orders for approximately 1,180 railcars during the fourth
quarter of 2008. As of December 31, 2008, TrinityRail's railcar
order backlog totaled approximately $720 million, representing
approximately 8,260 railcars, compared to a railcar order backlog
at December 31, 2007 of approximately $2.7 billion, representing
approximately 31,870 railcars. Trinity's railcar leasing business,
Trinity Industries Leasing Company ("TILC"), grew by approximately
3,940 railcars during the fourth quarter of 2008. At December 31,
2008, TILC's fleet totaled approximately 47,850 railcars. This
compares to a fleet of approximately 36,090 railcars at December
31, 2007. The utilization of the lease fleet at December 31, 2008
was 98.6% compared with 99.2% at December 31, 2007. During the
fourth quarter of 2008, Trinity sold $87.1 million worth of
railcars to TRIP Rail Leasing LLC ("TRIP"); $51.7 million of this
total was from Trinity's railcar manufacturing companies and $35.4
million was from TILC. From TRIP's inception in June 2007 through
December 31, 2008, it has purchased $987.9 million worth of
railcars, including both new car purchases from Trinity's railcar
manufacturing companies and purchases from TILC. TRIP has the
capacity to purchase an additional $412.1 million worth of railcars
by June 2009. All railcar sales to TRIP have leases with
independent third parties. In January 2009, an equity investor
exercised its option requiring Trinity to purchase an additional 5%
of the equity in TRIP Rail Holdings LLC for approximately $9.0
million. As a result, Trinity now holds a 25% equity ownership in
TRIP Rail Holdings LLC, the member-manager of TRIP. Trinity has no
further obligations to purchase additional equity from other
investors in TRIP. TILC is responsible for managing TRIP's
railcars. Revenues for Trinity's Energy Equipment Group grew 13.8%
during the fourth quarter of 2008 over the same quarter of 2007,
and operating profit grew 44.9%, compared to the same quarter in
2007, a result of growth in the structural wind towers business.
Sales of structural wind towers accounted for 66.2% of the total
revenues for the Energy Equipment Group in the fourth quarter of
2008, compared to 64.1% of the total revenues for the Energy
Equipment Group in the same quarter of 2007. The order backlog for
structural wind towers at December 31, 2008 totaled approximately
$1.4 billion, compared to an order backlog of approximately $702
million at December 31, 2007. Revenues for Trinity's Inland Barge
Group grew 28.0% during the fourth quarter of 2008 to $175.9
million, compared to the same quarter of 2007. Operating profit for
the group was $35.7 million. The Inland Barge Group's order backlog
was approximately $528 million at December 31, 2008, compared to
approximately $753 million at December 31, 2007. Revenues from
Trinity's Construction Products Group declined 15% over the same
quarter of 2007 due to decreased demand for concrete, aggregates,
and highway products. Trinity's total available liquidity at
December 31, 2008 was approximately $775 million. This includes the
cash balance of $161.8 million, as well as the available amounts in
the Company's $425 million Corporate Revolver and $600 million
Railcar Leasing Warehouse facility. For the first quarter of 2009,
Trinity expects net income ranging from $0.20 to $0.30 per common
diluted share. Due to the uncertainty of the U.S. economy, Trinity
has elected not to provide guidance beyond the first quarter.
Conference Call Trinity will hold a conference call at 11:00 a.m.
Eastern on February 19, 2009 to discuss its fourth quarter results.
To listen to the call, please visit the Investor Relations section
of the Trinity Industries website, http://www.trin.net/. An audio
replay may be accessed through the Company's website or by dialing
(402) 220-0121 until 11:59 p.m. Eastern on February 26, 2009.
Trinity Industries, Inc., headquartered in Dallas, Texas, is a
multi-industry company that owns a variety of market-leading
businesses which provide products and services to the industrial,
energy, transportation, 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: http://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," 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
"Forward-Looking Statements" in the Company's Annual Report on Form
10-K for the most recent fiscal year. - TABLES TO FOLLOW - Trinity
Industries, Inc. Condensed Consolidated Income Statements (in
millions, except per share amounts) (unaudited) Three Months Ended
December 31, 2008 2007 Revenues $883.8 $1,103.3 Operating profit
$109.8 $146.1 Interest expense, net 28.5 17.0 Other (income)
expense, net 5.3 0.1 --- --- Income from continuing operations
before income taxes 76.0 129.0 Provision for income taxes 31.4 50.5
---- ---- Income from continuing operations 44.6 78.5 Discontinued
operations: Income (loss) from discontinued operations, net of
provision (benefit) for income taxes of $0.2 and $- 0.2 (0.2) ---
----- Net income $44.8 $78.3 ===== ===== Net income per common
share: Basic: Continuing operations $0.58 $0.99 Discontinued
operations - - --- --- $0.58 $0.99 ===== ===== Diluted: Continuing
operations $0.58 $0.97 Discontinued operations - - --- --- $0.58
$0.97 ===== ===== Weighted average number of shares outstanding:
Basic 76.9 79.1 Diluted 77.7 80.5 Trinity Industries, Inc.
Condensed Consolidated Income Statements (in millions, except per
share amounts) (unaudited) Year Ended December 31, 2008 2007
Revenues $3,882.8 $3,832.8 Operating profit $549.0 $512.8 Interest
expense, net 95.3 64.0 Other (income) expense, net (9.1) (14.4)
----- ------ Income from continuing operations before income taxes
462.8 463.2 Provision for income taxes 175.5 169.4 ----- -----
Income from continuing operations 287.3 293.8 Discontinued
operations: Loss from discontinued operations, net of benefit for
income taxes of $(-) and $(0.2) (1.5) (0.7) ----- ----- Net income
$285.8 $293.1 ====== ====== Net income per common share: Basic:
Continuing operations $3.67 $3.73 Discontinued operations (0.02)
(0.01) ------ ------ $3.65 $3.72 ===== ===== Diluted: Continuing
operations $3.61 $3.65 Discontinued operations (0.02) - ------ ---
$3.59 $3.65 ===== ===== Weighted average number of shares
outstanding: Basic 78.4 78.7 Diluted 79.7 80.4 Trinity Industries,
Inc. Condensed Segment Data (in millions) (unaudited) Three Months
Ended December 31, Revenues: 2008 2007 Rail Group $652.3 $592.4
Construction Products Group 151.7 178.3 Inland Barge Group 175.9
137.4 Energy Equipment Group 161.3 141.8 Railcar Leasing and
Management Services Group 122.4 194.3 All Other 20.6 19.4
Eliminations - lease subsidiary (370.1) (137.6) Eliminations -
other (30.3) (22.7) ------ ------ Consolidated Total $883.8
$1,103.3 ====== ======== Operating profit (loss): Three Months
Ended December 31, 2008 2007 Rail Group $41.3 $76.4 Construction
Products Group 7.6 13.3 Inland Barge Group 35.7 26.3 Energy
Equipment Group 24.2 16.7 Railcar Leasing and Management Services
Group 34.9 46.9 All Other 1.1 (0.2) Corporate (11.6) (8.2)
Eliminations - lease subsidiary (22.1) (22.2) Eliminations - other
(1.3) (2.9) ----- ----- Consolidated Total $109.8 $146.1 ======
====== Trinity Industries, Inc. Condensed Segment Data (in
millions) (unaudited) Year Ended December 31, Revenues: 2008 2007
Rail Group $2,563.4 $2,381.5 Construction Products Group 741.2
733.0 Inland Barge Group 625.2 493.2 Energy Equipment Group 632.6
433.9 Railcar Leasing and Management Services Group 535.9 631.7 All
Other 78.7 69.8 Eliminations - lease subsidiary (1,162.4) (828.5)
Eliminations - other (131.8) (81.8) ------- ------ Consolidated
Total $3,882.8 $3,832.8 ======== ======== Operating profit (loss):
Year Ended December 31, 2008 2007 Rail Group $247.7 $347.6
Construction Products Group 58.2 58.2 Inland Barge Group 119.2 72.6
Energy Equipment Group 100.3 50.1 Railcar Leasing and Management
Services Group 158.9 161.2 All Other 2.5 1.8 Corporate (41.3)
(34.9) Eliminations - lease subsidiary (86.3) (138.0) Eliminations
- other (10.2) (5.8) ------ ----- Consolidated Total $549.0 $512.8
====== ====== Trinity Industries, Inc. Condensed Consolidated
Balance Sheets (in millions) (unaudited) December 31, December 31,
2008 2007 Cash and cash equivalents $161.8 $289.6 Receivables, net
of allowance 251.3 296.5 Income tax receivable 98.7 - Inventories
611.8 586.7 Net property, plant, and equipment (1) 2,990.6 2,069.8
Other assets 801.6 800.6 ----- ----- $4,915.8 $4,043.2 ========
======== Accounts payable and accrued liabilities $699.4 $684.3
Debt (2) 1,905.9 1,374.2 Deferred income 71.8 58.4 Deferred income
taxes 341.9 142.1 Other liabilities 65.6 57.5 Stockholders' equity
1,831.2 1,726.7 ------- ------- $4,915.8 $4,043.2 ======== ========
(1) Property, Plant, and Equipment Corporate/Manufacturing:
Property, plant, and equipment $1,175.6 $1,065.6 Accumulated
depreciation (620.2) (565.4) ------- ------- 555.4 500.2 -----
----- Leasing: Machinery and other 37.0 36.1 Equipment on lease
2,973.2 1,996.7 Accumulated depreciation (232.7) (214.4) -------
------- 2,777.5 1,818.4 ------- ------- Deferred profit on railcars
sold to the Leasing Group (342.3) (248.8) ------- ------- $2,990.6
$2,069.8 ======== ======== (2) Debt Corporate/Manufacturing -
Recourse: Revolving credit facility $- $- Convertible subordinated
notes 450.0 450.0 Senior notes 201.5 201.5 Other 2.7 3.1 --- ---
654.2 654.6 ----- ----- Leasing - Recourse: Equipment trust
certificates 61.4 75.7 ---- ---- Total recourse 715.6 730.3 -----
----- Leasing - Non-recourse: Secured railcar equipment notes 320.0
334.1 Warehouse facility 312.7 309.8 Promissory notes 557.6 - -----
----- 1,190.3 643.9 ------- ----- $1,905.9 $1,374.2 ========
======== Trinity Industries, Inc. Reconciliation of EBITDA (in
millions) (unaudited) "EBITDA" is defined as net income (loss) plus
interest expense, income taxes, and depreciation and amortization.
EBITDA is not a calculation based on generally accepted accounting
principles. The amounts included in the EBITDA calculation,
however, are 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 have reported
EBITDA because we regularly review EBITDA as a measure of our
ability to incur and service debt. In addition, we believe our debt
holders utilize and analyze our EBITDA for similar purposes. We
also 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 Ended December 31, 2008 2007 Income from
continuing operations $44.6 $78.5 Add: Interest expense 29.0 20.4
Provision for income taxes 31.4 50.5 Depreciation and amortization
expense 37.2 32.9 ---- ---- Earnings from continuing operations
before interest expense, income taxes, and depreciation and
amortization expense $142.2 $182.3 ====== ====== Year Ended
December 31, 2008 2007 Income from continuing operations $287.3
$293.8 Add: Interest expense 100.4 76.2 Provision for income taxes
175.5 169.4 Depreciation and amortization expense 140.3 118.9 -----
----- Earnings from continuing operations before interest expense,
income taxes, and depreciation and amortization expense $703.5
$658.3 ====== ====== DATASOURCE: Trinity Industries, Inc. CONTACT:
James E. Perry, Vice President, Finance and Treasurer of Trinity
Industries, Inc., +1-214-589-8412 Web Site: http://www.trin.net/
Copyright