Slide 1: Q1 2022 Earnings Conference Call Supplemental Materials
DELIVERING GOODS for THE GOOD of ALL TRINITY INDUSTRIES, INC. Investor Contact: TrinityInvestorRelations@trin.net Website: www.trin.net Q1 2022 – Earnings Conference Call Supplemental Materials April 27, 2022 – based on financial results as of March 31, 2022 Exhibit 99.3
Slide 2: Forward Looking Statements
DELIVERING GOODS for THE GOOD of ALL /// 2 Some statements in this presentation, 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,
Slide 3: Key Messages from Q1-22 Conference Call
DELIVERING GOODS for THE GOOD of ALL /// Key Messages from Q1-22 Conference Call 3 Strong orders and deliveries support market momentum; book-to-bill ratio of 2.0x FLRD at positive 2.4%; utilization up to 96.5% Continue to manage supply chain and labor headwinds Maintaining EPS guidance and expect i
Slide 4: Rail Market Update and Commercial Overview
DELIVERING GOODS for THE GOOD of ALL /// Rail Market Update and Commercial Overview 4 Rail Traffic is Improving (1) Railcars are Coming out of Storage (2) Fleet Utilization at Pre-Pandemic Level Railcar Orders Up Year-over-Year Fl ee t U ti liz at io n FLR D Fleet Utilization FLRD (3) Q1-21 Q2-21 Q3
Slide 5: Q1-22 Financial Results Summary – Year over Year
DELIVERING GOODS for THE GOOD of ALL /// Q1-22 Financial Results Summary – Year over Year 5 Q1-22 Revenue $473M Q1-22 Cash Flow, Continuing Ops $29M Q1-22 EPS, Adjusted* $0.03 Q1-22 Free Cash Flow* $48M * See appendix for reconciliation of non-GAAP measures $+0.02 +43% -59% -47%
Slide 6: Trinity Business Segment Performance Trends
DELIVERING GOODS for THE GOOD of ALL /// Trinity Business Segment Performance Trends 6 Rail Products Segment Revenue Drivers ◦ Quarterly revenue down sequentially, mainly due to timing of deliveries but reflects substantial growth year over year Rail Products Margin Performance Drivers ◦ Margins rem
Slide 7: Executing on Strategic Initiatives to Improve Pre-Tax ROE
DELIVERING GOODS for THE GOOD of ALL /// Executing on Strategic Initiatives to Improve Pre-Tax ROE 7 Expect to close TRL-2022 on April 28th, a $245 million ABS transaction collateralized with existing railcar assets LTV(1) of 63.8% Balance Sheet Optimization 1,275 sustainable railcar conversions in
Slide 8: Revenue Reflects Improving Market Dynamics
DELIVERING GOODS for THE GOOD of ALL /// Revenue Reflects Improving Market Dynamics Q1 2022 Financial Summary: Income Statement: • Total revenues of $473M reflect higher external railcar deliveries year-over-year • Earnings from continuing operations of $0.09 ◦ Adjusted EPS of $0.03* • Benefited fro
Slide 9: Healthy Balance Sheet Strategically Positioned for Opportunistic Deployment
DELIVERING GOODS for THE GOOD of ALL /// 9 Unencumbered Railcars $771M • Pledge to warehouse • Additional assets can be sold or financed • LTV of 63.8% for the wholly-owned lease portfolio as of Q1-22(2) CAPITAL LEVERS Recourse Debt $449M @ 4.3%(1) Non-recourse Debt $4.8B @ ~2.9%(1) • Low-cost funds
Slide 10: Management Outlook for Business Performance
DELIVERING GOODS for THE GOOD of ALL /// Management Outlook for Business Performance 10 C ap it al A llo ca ti on FY 2022 Summary Detail Industry Deliveries 40K – 50K railcars Does not include sustainable railcar conversions; expect Trinity to maintain historic market share Net Fleet Investment $450
Slide 11: Key Messages from Q1-22 Conference Call
DELIVERING GOODS for THE GOOD of ALL /// Key Messages from Q1-22 Conference Call 11 Strong orders and deliveries support market momentum; book-to-bill ratio of 2.0x FLRD at positive 2.4%, utilization up to 96.5% Continue to manage supply chain and labor headwinds Maintaining EPS guidance and expect
Slide 12: Trinity Q1-22 Earnings Conference Call Q&A
DELIVERING GOODS for THE GOOD of ALL /// Trinity Q1-22 Earnings Conference Call 12 Q&A
Slide 13: Reconciliation: Adjusted Operating Results
DELIVERING GOODS for THE GOOD of ALL /// Reconciliation: Adjusted Operating Results 13 Three Months Ended March 31, 2022 (in millions, except per share amounts) GAAP Gains on dispositions of property – other (1) Interest expense, net (2) Adjusted Operating profit $ 54.8 $ (6.4) $ — $ 48.4 Income (lo
Slide 14: Free Cash Flow Reconciliation
DELIVERING GOODS for THE GOOD of ALL /// Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 (in millions) Net cash provided by operating activities – continuing operations $ 69.3 $ 255.6 $ 93.9 $ 196.8 $ 28.5 Proceeds from lease portfolio sales 17.3 71.5 315.7 49.8 71.1 Adjusted Net Cash Provided by Operating Activities
Slide 15: Reconciliation: Total Company Pre-Tax ROE
DELIVERING GOODS for THE GOOD of ALL /// Reconciliation: Total Company Pre-Tax ROE 15 (1) Represents insurance recoveries in excess of net book value for assets damaged by a tornado at the Company’s rail maintenance facility in Cartersville, Georgia in the first quarter of 2021. (2) Excludes $81.3 m
Slide 16: Footnotes and Reconciliations
DELIVERING GOODS for THE GOOD of ALL /// Footnotes and Reconciliations 16 Slide 4 - Rail Market Update and Commercial Overview (1) Association of American Railroads (AAR) Weekly Railcar Loadings (2) AAR Rail Time Indicators – April 1, 2022 (3) Future Lease Rate Differential (FLRD) calculates the imp