Trinity Industries, Inc. · NYSE:TRN
Trinity Industries — Investor Presentation (November 2011)
23 slides from Trinity Industries's investor presentation, Nov 28, 2011
Slide 1: Trinity Industries, Inc.
Exhibit 99.1 Trinity Industries, Inc. November 2011
Slide 2: Forward Looking Statements
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 st
Slide 3: Trinity is a Multi-Industry Company
Trinity is a Multi-Industry Company Leading manufacturer of railcars in North America Manufacturer of railcar axles in North America Rail Group Manufacturer of railcar coupling devices in North America Railcar Leasing and Leading provider of railcar leasing and management Management Services service
Slide 4: Trinity's Differentiating Strategies and Tactics
Trinity’s Differentiating Strategies and Tactics Trinity’s strategies and tactics are designed to improve our performance in all economic cycles During the last decade, we enhanced our multi-industry portfolio by: Strategically growing the Leasing business to provide a solid base of earnings and cas
Slide 5: Trinity Today
Trinity Today Trinity’s Multi-Industry Model Manufacturing Businesses Leasing and Management Services Maintain leadership positions Expand relationships with end-users Utilize significant manufacturing of railcars footprint in Southern U.S. and Mexico Introduce new products into the Optimize operati
Slide 6: Revenues are More Diversified Than in the Past
Trinity’s Revenues are More Diversified Than in the Past External Revenue Composition External Revenue Composition FY 2000 LTM 09/30/11 6% 8% Rail 19% Rail 25% Leasing Leasing 21% CPG CPG 60% EEG 16% EEG 20% 5% Barge Barge 20% FY 2000 Total Consolidated Revenue was $2.7 billion LTM 09/11 Total Conso
Slide 7: Trinity is Well Positioned for All Economic Cycles
Trinity is Well Positioned for All Economic Cycles Trinity has staying power, continually building strength during a down cycle and emerging with more opportunity for growth than when the cycle began Seasoned management team knows how to assess the market, proactively plan for cycles and address cha
Slide 8: Railcar Cycles Require Proactive Planning
Railcar Cycles Require Proactive Planning Railcar Deliveries (1959 – 2015P) Projections based on Third-Party estimates (1) 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 (1) Sources: Historical data as reported per the Railway Supply Institute. 2011-2015 projections are an
Slide 9: Manufacturing Flexibility is a Differentiator
Trinity’s Manufacturing Flexibility is a Differentiator Trinity’s manufacturing flexibility enhances our opportunistic approach – We quickly respond to market changes and customer needs – Our resources are directed toward highest and best use Manufacturing flexibility across business lines Manufactu
Slide 10: Trinity Has an Excellent Competitive Position in Mexico
Trinity Has an Excellent Competitive Position in Mexico More than five decades of in-country operating experience Trinity’s manufacturing capacity in Mexico continues to grow Provides benefits across multiple product lines Strong logistics network in place – approximately 990 truckloads crossing the
Slide 11: Companies Have Continuous Synergistic Connections
Trinity’s Companies Have Continuous Synergistic Connections Trinity’s businesses place a high priority on collaborating with each other to continuously generate synergies that provide competitive benefits: Internal Sourcing of Shared Best Practices Components & Sub- in Manufacturing Assemblies Techn
Slide 12: Railcar Leasing Company Provides Stability
Trinity’s Railcar Leasing Company Provides Stability The growth of our railcar leasing business over the last decade has produced a consistent revenue and earnings base Trinity Industries Leasing Company (TILC), our wholly-owned leasing subsidiary, provides strategic benefits to our railcar manufact
Slide 13: Railcar Lease Fleet has Grown Rapidly
Trinity’s Railcar Lease Fleet has Grown Rapidly We have built a large fleet of young railcars with long-term leases – Our lease fleet provided an important base of revenues and earnings during the last downturn helping Trinity maintain profitability 70,000 60,000 50,000 40,000 30,000 20,000 10,000 -
Slide 14: Liquidity Position is Strong
Trinity’s Liquidity Position is Strong As of September 30, 2011: Unrestricted Cash and Cash Equivalents of $272.8 million Corporate Revolver availability of $342.4 million TILC Leasing Warehouse availability of $194.3 million Total available liquidity of approximately $810 million Corporate Revolver
Slide 15: Balance Sheet Remains Solid
Trinity’s Balance Sheet Remains Solid As of September 30, 2011: Unrestricted Cash and Cash Equivalents of $272.8 million Manufacturing/Corporate debt: – Subordinated Convertible Notes of $450 million; first call/put in 2018 Leasing debt (including TRIP): – Warehouse borrowings of $280.7 million; lon
Slide 16: Recent Operating Results
Trinity’s Recent Operating Results LTM as of September 30, 2011: Trinity’s Earnings Summary FY 2005 – LTM 9/30/11 $3.55 $3.47 Revenues increased 37.1% from $2.0 billion to $4.00 $3.50 $2.64 $2.8 billion $3.00 $2.50 $2.00 $1.42 $1.33 $1.29 Operating profit increased by $58.6mm to $1.50 $0.85 $1.00 $2
Slide 17: Appendix: Operating Business Summaries
Appendix: Operating Business Summaries
Slide 18: Rail Group
Rail Group Rail Group Highlights Leading manufacturer of railcars in North Trinity shipments totaled approximately 11,190 railcars America representing 29% of industry shipments during LTM 9/30/11 Manufacturer of railcar axles and coupling Trinity orders totaled approximately 34,210 railcars devices
Slide 19: Railcar Leasing and Management Services Group
Railcar Leasing and Management Services Group Trinity Leasing’s capabilities provide the following advantages: Leading provider of comprehensive railcar leasing and management services Leasing complements product offering (one-stop shopping) Strategic Position Provides Trinity’s rail customers optio
Slide 20: Inland Barge Group
Inland Barge Group Leading Leading manufacturer manufacturer of of barges barges that that transport transport Inland Barge Group Highlights goods through U.S. inland waterways goods through U.S. inland waterways Revenues up 26.4% in LTM 9/30/11 vs. LTM 9/30/10 Profitability remains high -Operating
Slide 21: Construction Products Group
Construction Products Group Leading manufacturer of highway guardrail and Construction Products Group Highlights crash cushions in the United States; plus a line of proprietary products including guardrail end Revenues increased 2.1% LTM 9/30/11 vs. LTM 9/30/10 treatments and cable barrier guardrail
Slide 22: Energy Equipment Group
Energy Equipment Group Energy Equipment Group Highlights Leading North American producer in structural wind tower business Structural Wind Towers: Revenue of $242.4mm in LTM 9/30/11 Leading producer of propane tanks, tank Trinity’s backlog as of 9/30/11 was $930 million Plants are strategically loca
Slide 23: Reconciliation of EBITDA
Reconciliation of EBITDA (1) (1) 2005 2006 2007 2008 2009 2010 (1) LTM 9/11 (1) Income (loss) from continuing operations $110.5 $212.6 $289.8 $282.4 ($137.5) $75.6 $107.5 Add: Interest expense 42.2 68.7 84.5 109.4 123.2 182.1 182.0 Provision/(Benefit) for income taxes 65.6 131.3 165.1 171.4 (9.4) 40
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