Slide 1: Trinity Industries, Inc. May 2010
Trinity Industries, Inc. May 2010
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: Trinity is a Multi-Industry Company
3 Trinity is a Multi-Industry Company Trinity is a Multi-Industry Company Trinity provides infrastructure products and services through five distinct business groups: Note: Revenue percentages for Last Twelve Months Ended 3/31/10 for outside revenues (1) Includes revenues related to TRIP Rail Holdin
Slide 4: Trinity's Key Market Leadership Positions
4 Trinity's Key Market Leadership Positions Trinity's Rail Group Largest manufacturer of railcars in North America Largest railcar axle manufacturer in North America Largest railcar coupling device manufacturer in North America Trinity's Rail Leasing and Management Services Group Leading provider of
Slide 5: Trinity's Differentiating Strategies and Tactics
5 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 have enhanced our multi-industry portfolio by: Strategically growing the Leasing business to provide a solid base of earnings
Slide 6: Trinity's Revenues are More Diversified Than in the Past
6 Trinity's Revenues are More Diversified Than in the Past LTM 3/31/10 Total Consolidated Revenue was $2.2 billion *Includes revenues related to TRIP for the three months ending 3/31/10 FY 2000 Total Consolidated Revenue was $2.7 billion
Slide 7: Trinity Today: Multi-Industry Model
7 Trinity Today Leasing and Management Services Expand relationships with end-users of railcars Introduce new products into the market Provide earnings and cash flow base for Trinity Consistently grow the business Manufacturing Businesses Maintain leadership positions Utilize significant manufacturi
Slide 8: Trinity Has Navigated Through Economic Cycles
8 Trinity Has Navigated Through Economic Cycles Trinity's businesses have gone through multiple economic cycles Our seasoned management knows how to assess the market, proactively plan for cycles and then react to changes in economic conditions We have a performance driven culture that thrives on ma
Slide 9: Trinity is Well Positioned for All Economic Cycles
9 Trinity is Well Positioned for All Economic Cycles Trinity had strong momentum as the positive economic cycle came to an end Trinity had significant backlogs as we entered the economic downturn They have enabled normal operating conditions and the opportunity to proactively plan our production Tri
Slide 10: Trinity's Manufacturing Flexibility is a Differentiator
10 Trinity's Manufacturing Flexibility is a Differentiator Trinity's Manufacturing Flexibility is a Differentiator Trinity's Manufacturing Flexibility is a Differentiator Trinity's Manufacturing Flexibility is a Differentiator Trinity's manufacturing flexibility enhances our opportunistic approach W
Slide 11: Trinity Has an Excellent Competitive Position in Mexico
11 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 Multiple plants in Mexico Trinity's significant manufacturing capacity in Mexico continues to grow Strong logistics network in
Slide 12: Trinity's Companies Have Continuous Synergistic Connections
12 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: Maximized Plant Efficiencies Internal Sourcing of Components & Sub- Assemblies INTERNALLY G
Slide 13: Trinity's Railcar Leasing Company Provides Stability
13 Trinity's Railcar Leasing Company Provides Stability Trinity Industries Leasing Company's (TILC) growth over the last decade has established a predictable revenue and earnings base TILC continues to provide strategic benefits to our manufacturing businesses in addition to its strong financial per
Slide 14: Trinity's Railcar Lease Fleet has Grown Rapidly
14 Trinity's Railcar Lease Fleet has Grown Rapidly 3/00 3/01 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 3/10 2003 8684 11830 13280 15098 18599 20313 24877 30553 36090 47850 50090 50350 CAGR of 19.2% 8,700 cars 50,350 cars (1) We have built a large fleet of young railcars with long-term le
Slide 15: Industry Shipments
15 Industry Shipments 1956 67080 1957 99590 1958 42760 1959 37819 1960 57047 1961 31720 1962 36554 1963 44960 1964 69330 1965 77828 1966 90104 1967 83095 1968 56232 1969 69028 1970 65970 1971 54696 1972 47460 1973 59875 1974 66563 1975 72337 1976 52504 1977 51142 1978 67286 1979 84869 1980 80470 198
Slide 16: Trinity's Liquidity Position is Strong
16 Trinity's Liquidity Position is Strong As of March 31st, 2010: Unrestricted Cash and Short-term Marketable Securities of $522.8 million Corporate Revolver availability of $336.1 million TILC Leasing Warehouse availability of $335.0 million Total available liquidity of approximately $1.2 billion C
Slide 17: Trinity's Balance Sheet Remains Solid
17 Trinity's Balance Sheet Remains Solid As of March 31st, 2010: Unrestricted Cash and Short-term Marketable Securities of $522.8 million Corporate debt Senior Notes of $201.5 million; mature in 2014 Subordinated Convertible Notes of $450 million; first call/put in 2018 Leasing debt excluding TRIP W
Slide 18: Trinity's Recent Operating Results
18 Trinity's Recent Operating Results* Trinity's Earnings Summary FY 2005 - LTM 3/31/10 Earnings Column 12 Column 13 Column 14 Column 15 Column 16 2003 -0.06 2004 -0.25 2005 1.42 2006 2.64 2007 3.55 2008 3.47 2009 -1.81 LTM 3/10 -2.25 Revenues decreased 40.8% in LTM 3/31/10 versus LTM 3/31/09 from $
Slide 19: Appendix: Operating Business Summaries
Appendix: Operating Business Summaries
Slide 20: Rail Group
20 Industry shipments of 16,600 railcars during LTM 3/31/10 with a backlog of 12,990 railcars as of 3/31/10 Trinity shipments totaled approximately 6,560 railcars during LTM 3/31/10 Trinity orders totaled approximately 3,310 railcars representing 28% of the Industry total during LTM 3/31/10 Trinity'
Slide 21: Railcar Leasing and Management Services Group
21 Railcar Leasing and Management Services Group Leading provider of comprehensive railcar leasing and management services The TILC lease fleet was approximately 50,350 railcars at 3/31/10 as compared to 47,650 at 3/31/09. TRIP's lease fleet included 14,710 cars. Single point of contact for equipmen
Slide 22: Inland Barge Group
22 Revenue Operating profit Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 2002 211.7 4.7 0.0222 2003 170.6 -4.7 -0.0275 2004 210.4 -14.8 -0.0703 2005 240.7 15.7 0.0652 2006 371.2 44.5 0.1199 2007 493.2 72.6 0.1472
Slide 23: Construction Products Group
23 Revenues OP OP% Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 2002 463.9 44.8 0.097 2003 457.4 37.5 0.082 2004 535.5 35.1 0.066 2005 621.6 55.9 0.09 2006 695.3 62.8 0.09 2007 733 72.4 0.099 2008 761 64.2 0.087 2009 32.6
Slide 24: Energy Equipment Group
24 Revenue OP OP% Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 2002 149.4 0.6 0.004 2003 124.3 10.9 0.088 2004 152.1 15.3 0.101 2005 234.8 31.9 0.136 2006 336.5 45.7 0.136 2007 433.9 50.1 0.115 2008 530 100.3 0.159 2009 73.8 0.145
Slide 25: Reconciliation of EBITDA
Reconciliation of EBITDA "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 amounts included in