Trinity Industries, Inc. · NYSE:TRN
Trinity Industries — Investor Presentation (May 2006)
18 slides from Trinity Industries's investor presentation, May 31, 2006
Slide 1: Trinity Industries, Inc. Investor Presentation
Trinity Industries, Inc. Investor Presentation
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: Executive Summary
Executive Summary Trinity is pleased to provide an overview of 2005 and YTD 2006 operating performance, along with an update on our near term outlook Recent performance has been very strong, reflecting positive strong industry fundamentals Rail industry is at highest backlog since the early 1980's (
Slide 4: Key Investment Considerations
Key Investment Considerations Solid Industry Fundamentals Strong backlog and shipment projections fueled by robust economic growth and commodity demand Favorable impact of legislation Industry Leadership Market leader in each of its segments in various geographies, especially in higher margin railca
Slide 5: Trinity Highlights
EBITDA Margin Line 3 Revenue EBITDA Stack 2 Stack 3 Stack 4 Stack 5 Stack 6 Stack 7 Stack 8 Stack 9 Stack 10 Stack 11 Stack 12 Stack 13 Stack 14 Stack 15 Stack 16 2002 0.063 1487.3 93.504 50 2003 0.073 1432.8 13.4 125 2004 0.052 2198.1 14.1 200 2005 0.1 2902 170.4 275 LTM 3/31/06 0.1141 3016 226.1 3
Slide 6: Trinity Highlights (cont.)
Trinity Highlights (cont.) Strong North American Demand drivers: Improving North American economy Strong market demand in all lines of business Favorable legislation Productivity improvements Good weather conditions for construction North America railcar demand remained strong as the economy improve
Slide 7: Congressional & Regulation Improvements Positive for Growth of Other Segments
Congressional & Regulation Improvements Positive for Growth of Other Segments Federal Highway Bill provides growth opportunity Bill provides $286.5 billion over six years The Bill provides a 31% increase over the previous funding levels Each state is guaranteed at least a 21% increase over amounts p
Slide 8: Railcar Group: Shipments, Orders and Backlog
FY 2005: Shipped approximately 22,930 railcars in North America, or approximately 33% of total North American shipments North American order backlog was approximately 18,800 railcars, or approximately 27% of the total North American backlog as reported by the Railway Supply Institute, Inc. Q1 06: Sh
Slide 9: Rail Industry Shipment Summary and Projections
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 1981 4
Slide 10: Railcar Leasing and Management Services Group (TILC)
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 49892 2003 41 2004 42 2005 55.8 LTM 3/31/2006 59.8 Railcar Leasing and Management Services Group ("TILC") Provider of comprehensive railc
Slide 11: Trinity's Lease Fleet Growth
Trinity's Lease Fleet Growth Railcar 77.5 Construction Products 69.4 Inland Barge 25.7 Energy Equipment 37.1 Railcar Leasing & Mgmt 59.8 All other Slice 7 Slice 8 Slice 9 Slice 10 Slice 11 Slice 12 Slice 13 Slice 14 Slice 15 Slice 16 Revenue Owned Leased Column 4 Column 5 Column 6 Column 7 Column 8
Slide 12: Trinity's Lease Fleet Utilization
Trinity's Lease Fleet Utilization Revenue EBITDA 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 1995 0.999 1996 0.999 1997 0.997 1998 0.995 1999 0.972 2000 0.966 2001 0.944 2002 0.945 2003 0.981 2004 0.99 2005 0.99
Slide 13: Inland Barge Group
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 2003 -4.7 2004 -14.8 2005 15.7 LTM 3/31/2006 25.7 Railcar 77.5 Construction Products 69.4 Inland Barge 25.7 Energy Equipment 37.1 Railcar Leas
Slide 14: Inland Barge Segment: Growth Expected to be Driven by Replacement Demand
Estimated Retirements New Builds 1999 1019 931 2000 1201 831 2001 862 655 2002 1139 596 2003 947 280 2004 942 510 2005 714 328 Age 0-5 Years 2459 6-10 Years 5461 11-15 Years 2677 16-20 Years 1306 21-25 Years 2738 26+ Years 5916 42% are 21+ years old Inland Barge Segment: Growth is Expected to be Dri
Slide 15: Construction Products Group
Revenue OP 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 2003 37.5 2004 40.4 2005 63.7 LTM 3/31/2006 69.4 Railcar 77.5 Construction Products 69.4 Inland Barge 25.7 Energy Equipment 37.1 Railcar Leasing & Mgmt 59.8
Slide 16: Energy Equipment Group
Revenue OP 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 2003 9.3 2004 14.5 2005 31.2 LTM 3/31/2006 37.1 Railcar 77.5 Construction Products 69.4 Inland Barge 25.7 Energy Equipment 37.1 Railcar Leasing & Mgmt 59.8
Slide 17: Summary of Strong Industry Dynamics
Summary of Strong Industry Dynamics Railcar and Railcar Leasing and Management Services Group: Growth of the economy Increased demand for coal, ethanol, grain and cement Replacement cycle conditions Age of Rail fleet - 44% of railcars, or approximately 700,000 railcars, are over 25 years old Strong
Slide 18: Trinity's Strategic Summary
Trinity's Strategic Summary Trinity plans to maximize current earnings during the upswing Diversify earnings base to stabilize cyclical downswings Position cyclical manufacturing operations in lower cost labor markets Grow company by deploying a persistent and patient acquisition strategy Aggressive
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