Slide 1: 2Q 2020 – Earnings Conference Call Supplemental Material
2Q 2020 – Earnings Conference Call Supplemental Material July 23, 2020 – based on financial results as of June 30, 2020 Investor Contact: TrinityInvestorRelations@trin.net Website: www.trin.net
Slide 2: Forward Looking Statements
Forward Looking Statements 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, beliefs, intent
Slide 3: Second Quarter Financial Results Highlights
Second Quarter Financial Results Highlights Q2 2020 Financial Summary: External Revenue Reflects Challenging Market Dynamics Income Statement: • Total revenues of $509mm • Earnings from continuing operations of $(1.76) • Adjusted EPS of $0.02 excludes non-cash asset impairment charges, restructuring
Slide 4: 2020 Cost Reduction Activities
2020 Cost Reduction Activities Cost Reduction Activity Executed YTD Total Identified Structural Administrative Cost Savings ~ $20mm ~ $30mm Cyclical Headcount Reductions ~ $38mm ~ $40mm TOTAL COST REDUCTION EFFORTS ~ $58mm ~ $70mm Structural administrative cost savings achieves Company’s previously
Slide 5: Facing Market Challenge from a Position of Strength
Facing Market Challenge from a Position of Strength Attractive Solid Liquidity Conservative Debt of $709mm(1) Capitalization Structures LIQUIDITY DEBT STRUCTURE CAPITAL LEVERS Cash & Equivalents Recourse Debt Unencumbered $157mm $530mm @ ~4%(1) Railcars $1.6B Non-recourse Debt Revolver Availability
Slide 6: Capital Allocation
Management Scenario Analysis Guideposts BASE CASE STRESS CASE Improved assumptions since Q1 (Economic Recovery) (Further Contraction or Relapse) Railcar Deliveries Backlog Delivers Deferred Deliveries Business Drivers > 90% Utilization Rate Lease Portfolio ~ 95% Utilization Rate Customer Late Paymen
Slide 7: Key Financial and Operational Performance Takeaways
Key Financial and Operational Performance Takeaways Prioritize health and safety of operations and maintain Continuity business continuity and focus on customer service Maximize the financial synergies of the TrinityRail Cash Flow platform and cash flow from long-term lease contracts Cost Optimizati
Slide 8: Footnotes & Reconciliations
Footnotes & Reconciliations * Except as noted below, GAAP EPS and Adjusted EPS were the same for the periods shown. Adjusted EPS in chart on Slide 3 includes the following adjustments reported by the Company: • Reported Q4-19 GAAP EPS was $0.18; Adjusted EPS excludes $0.09 per share related to restr