Slide 1: Trinity Industries, Inc. August 2014
Trinity Industries, Inc. August 2014 Exhibit 99.1
Slide 2: Forward Looking Statements
2 Forward Looking Statements This presentation contains “forward looking statements” as defined by the Private Securities Litigation Reform Act of 1995 and includes statements as to expectations, beliefs and future financial performance, or assumptions underlying or concerning matters herein. These
Slide 3: Agenda
3 Agenda I. Overview II. Key Investment Considerations III. Strategy and Vision IV. Financial Highlights V. Appendix
Slide 4: Trinity Industries, Inc. Overview
I. Trinity Industries, Inc. Overview 4 Trinity Industries, Inc. is a diversified industrial company that owns a variety of market-leading businesses providing products and services to the energy, transportation, chemical, and construction sectors Trinity operates through five business segments:
Slide 5: Key Investment Considerations
II. Key Investment Considerations 5 Leading Market Positions Diversified Portfolio of Businesses Flexible and Cost-Effective Manufacturing Seasoned Performers Enrichment Value Focused
Slide 6: Leading Market Positions
Leading Market Positions 6 Rail Group Leading manufacturer of railcars in North America Leading manufacturer of railcar axles in North America Leading manufacturer of railcar coupling devices in North America Railcar Leasing and Management Services Group Leading provider of railcar leasing a
Slide 7: Diversified Portfolio of Businesses
Diversified Portfolio of Businesses 7 PRESENT (LTM 06/14) MEASUREABLE PROGRESS OVER LAST 10 YEARS Total Revenues = $5.3 B Our diversified portfolio of businesses is generating a higher level of EPS on a similar levels of deliveries compared to various points in the railcar cycle (1) Operating Profit
Slide 8: Flexible and Cost-Effective Manufacturing
Flexible and Cost-Effective Manufacturing 8 Flexibility Cost-Effective Trinity's manufacturing flexibility across product and business segments enhances our ability to opportunistically respond to changes in market demand Trinity’s manufacturing scale, vertical integration, and presence in the South
Slide 9: Enrichment Value Focused
Enrichment Value Focused 9 E x te rn a l R e p o rti n g G ro u p s O p e ra tio n a l Foc u s A re a s Rail Leasing Construction Energy Inland Barge Customer Sharing Internal Component Sourcing Shared Best Manufacturing Practices Facility Optimization Centralized Cost Savings Trinity focuses on col
Slide 10: Seasoned Performer Across Various Market Conditions
10 Seasoned Performer Across Various Market Conditions Trinity is uniquely positioned for growth across various economic conditions Seasoned management team knows how to assess the market, proactively plan for cycles and address changes in economic conditions Manufacturing flexibility is a cor
Slide 11: Strategy and Vision: Operational
III. Strategy and Vision: Operational 11 Strategically Grow the Lease Fleet Maximize Manufacturing Efficiency Selectively Build our Backlogs Diversify Through Organic Growth Acquire Complementary Product Portfolios Be a premier, diversified industrial company that generates superior earnings and ret
Slide 12: Strategy and Vision: Financial
Liquidity (at 06/30/14): ~ $1,543 mm Strategy and Vision: Financial 12 Maintain a conservative and liquid balance sheet to be attractively positioned to capitalize on opportunities Working Capital Capital Expenditures Acquisitions Shareholder Distributions Corporate Debt(1) - Convertible Subordinate
Slide 13: Financial Highlights: Trinity's Earnings Summary
13 IV. Financial Highlights Trinity’s Earnings Summary FY 2008 – LTM 06/14(3) LTM as of June 30, 2014(1): Revenues increased 36% to $5.3 billion from $3.9 billion Operating profit increased 107% to $973 million from $471 million(2) EBITDA increased 59% to $1,349 million from $847 million Ear
Slide 14: Guidance and Outlook (As of July 30, 2014)
Guidance and Outlook (As of July 30, 2014) 14 Rail Group Revenues ~ $3.6 – 3.75 billion in FY 2014 OP Margin ~ 18% – 19% in FY 2014 Shipments ~ 28,500 – 29,500 in FY 2014 Leasing Group Revenues from Operations ~ $620– 635mm in FY 2014 OP from Operations ~ $270 - 285mm in FY 2014 Revenue Eliminations
Slide 15: Appendix: Operating Business Summaries
Appendix: Operating Business Summaries
Slide 16: Rail Group
16 Trinity delivered 27,555 railcars representing 47% of industry shipments during LTM 06/30/14 Trinity received orders for 32,240 railcars representing 38% of the industry total during LTM 06/30/14 Trinity’s order backlog was a record 45,350 railcars representing 45% of industry backlog as of
Slide 17: Railcar Leasing & Management Services Group
17 Railcar Leasing & Management Services Group Leading provider of comprehensive railcar leasing and management services Marketed with railcar sales activities as TrinityRail® Provider of operating leases offering ‘one stop shopping’ for TrinityRail customers and asset management services for
Slide 18: Inland Barge Group
18 Revenues down 8% in LTM 06/14 vs. LTM 06/13 as a result of fewer deliveries of hopper barges Profitability continues to be strong compared to historical averages for this business - Operating Profit margin was 19% during LTM 06/14 Solid order backlog of $467mm at 06/30/14 due to strong tank
Slide 19: Construction Products Group
19 Revenues and Operating Profit increased 8% and 47% respectively LTM 06/14 vs. LTM 06/13 as a result of acquisition related volumes in our Aggregates business, partially offset by lower volumes in the highway products business Portfolio repositioning activities since 2011 include the completio
Slide 20: Energy Equipment Group
20 Structural Wind Towers: Backlog of $611 million as of 06/30/14 provides visibility into 2016 Plants are strategically located along the central corridor where the majority of wind farms are installed Tank Storage Containers and Other: Acquired WesMor Cryogenics and Alloy Custom Products in
Slide 21: Reconciliation of EBITDA
Reconciliation of EBITDA(1) (in millions) “EBITDA” is defined as income (loss) from continuing operations plus interest expense, income taxes, and depreciation and amortization including goodwill impairment charges. EBITDA is not a calculation based on generally accepted accounting principles. The a
Slide 22: Reconciliation of PBT Margin – Railcar Leasing and Management Services Group
Reconciliation of PBT Margin – Railcar Leasing and Management Services Group 22 (in millions except for PBT Margin) 2007 2008 2009 2010 2011 2012 2013 LTM 06/14 From Leasing Operations: Revenue 272$ 314$ 329$ 461$ 493$ 529$ 587$ 613$ Operating Profit 112 124 129 200 225 243 267 281 Less: Interest Ex