Slide 1: Trinity Industries, Inc. March 2014
Trinity Industries, Inc. March 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
$- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 2007 2008 2009 2010 2011 2012 2013 Rail Group Leasing Barge CPG EEG All Other EPS, Total Company-diluted I. Trinity Industries, Inc. Overview 4 Trinity Industries, Inc. is
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 12/13) MEASUREABLE PROGRESS OVER LAST 10 YEARS Total Revenues = $4.4 B Our diversified portfolio of businesses generated a higher level of EPS on a similar level of deliveries during both the last rail industry downturn and delivery peak (1) Operati
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 12/31/13): ~ $1,257 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: Earnings and EBITDA Summary
$3.45 $1.33 $0.85 $1.77 $3.19 $4.75 $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 2008 2009 2010 2011 2012 2013 $667 $443 $470 $612 $774 $989 $0 $200 $400 $600 $800 $1,000 $1,200 2008 2009 2010 2011 2012 2013 13 IV. Financial Highlights Trinity’s Earnings Summary FY 2008 – FY 2013(3
Slide 14: Guidance and Outlook (As of February 20, 2014)
Guidance and Outlook (As of February 20, 2014) 14 Rail Group Revenues ~ $3.1 – 3.4 billion in FY 2014 OP Margin ~ 17.5 – 19.0% in FY 2014 Shipments ~ 25,500 – 27,500 in FY 2014 Leasing Group Revenues from Operations ~ $585 – 615mm in FY 2014 OP from Operations ~ $260 - 280mm in FY 2014 Revenue Elimi
Slide 15: Appendix: Operating Business Summaries
Appendix: Operating Business Summaries
Slide 16: Rail Group
$2,382 $2,563 $895 $522 $1,275 $2,013 $2,868 -4.0% 0.0% 4.0% 8.0% 12.0% 16.0% 20.0% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2007 2008 2009 2010 2011 2012 2013 Railcar Revenue Parts & Components Revenue OP Margin 16 Trinity delivered 24,335 railcars representing 46% of industry shipments
Slide 17: Railcar Leasing & Management Services Group
$272 $314 $329 $461 $493 $529 $587 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% $0 $100 $200 $300 $400 $500 $600 $700 2007 2008 2009 2010 2011 2012 2013 TILC Revenue Operations Margin PBT Margin 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 3/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/
Slide 18: Inland Barge Group
$493 $625 $527 $422 $549 $675 $577 0% 3% 6% 9% 12% 15% 18% 21% 24% $- $100 $200 $300 $400 $500 $600 $700 $800 2007 2008 2009 2010 2011 2012 2013 Revenues OP Margin 18 Revenues down 15% in LTM 12/13 vs. LTM 12/12 Profitability continues to be strong compared to historical averages for this busine
Slide 19: Construction Products Group
$326 $361 $281 $354 $453 $484 $525 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% $- $100 $200 $300 $400 $500 $600 2007 2008 2009 2010 2011 2012 2013 Highway Products Other OP Margin 19 Revenues and Operating Profit increased 9% and 17% respectively LTM 12/13 vs. LTM 12/12 as a result of acquis
Slide 20: Energy Equipment Group
$434 $633 $510 $420 $473 $ 559 $665 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% $- $100 $200 $300 $400 $500 $600 $700 2007 2008 2009 2010 2011 2012 2013 Wind Tower Revenues Other Revenues OP Margin 20 Structural Wind Towers: Revenues of $237 million in LTM 12/31/13 Backlog of $554 million as of 12/31/13
Slide 21: Reconciliation of EBITDA
2008 2009 2010 2011 2012 2013 Income (loss) from continuing operations $266.8 ($140.8) $69.4 $146.8 $251.9 $386.1 Add: Interest expense 109.4 123.1 182.1 185.3 194.7 187.3 Provision/(Benefit) for income taxes 163.5 (11.5) 37.3 92.2 134.0 204.4 Depreciation & amortization expense 126.8 147.1 180.9 18
Slide 22: Reconciliation of PBT Margin – Railcar Leasing and Management Services Group
Reconciliation of PBT Margin – Railcar Leasing and Management Services Group 22 (in millions except for PBT Margin) 2007 2008 2009 2010 2011 2012 2013 From Leasing Operations: Revenue 272$ 314$ 329$ 461$ 493$ 529$ 587$ Operating Profit 112 124 129 200 225 243 267 Less: Interest Expense (43) (67) (80