Trinity Industries, Inc. · NYSE:TRN
Trinity Industries — Investor Presentation (May 2017)
27 slides from Trinity Industries's investor presentation, May 8, 2017
Slide 1: Investor Presentation May 2017
Investor Presentation May 2017 Investor Contact: TrinityInvestorRelations@trin.net Website: www.trin.net
Slide 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 statements that are not histo
Slide 3: Agenda
Agenda I. Overview II. Key Investment Considerations III. Strategy and Vision IV. Financial Highlights V. Appendix 3
Slide 4: Trinity Industries, Inc. Overview
• Trinity Industries, Inc. is a diversified industrial company that owns complementary market- leading businesses providing products and services to the energy, chemical, agriculture, transportation, and construction sectors • Trinity operates through five business segments: • Rail Group • Railcar L
Slide 5: Key Investment Considerations
5 II. Key Investment Considerations Leading Market Positions Diversified Portfolio of Businesses Seasoned Performers Focused on Enrichment Value Flexible and Cost- Effective Manufacturing
Slide 6: Leading Market Positions
Rail Group Leading manufacturer of railcars Leading manufacturer of railcar axles Leading manufacturer of railcar coupling devices Railcar Leasing and Management Services Group Leading provider of railcar leasing and management services Inland Barge Group Leading manufacturer of inland bar
Slide 7: Diversified Portfolio of Businesses
7 Diversified Portfolio of Businesses PRESENT (LTM 03/17) Elevating Our Financial Performance Total Revenues = $4.3 B PAST (FY 2000) Total Revenues = $2.7 B Trinity’s long-term goal is to establish sustainable earnings growth over economic cycles. All Footnotes throughout the presentation are listed
Slide 8: Flexible and Cost-Effective Manufacturing
8 Flexible and Cost-Effective Manufacturing In recent years, Trinity has invested in its manufacturing footprint to establish “multi-purpose” facilities, enhancing its flexible manufacturing footprint. Flexibility Cost-Effective Trinity's manufacturing flexibility across products and business segmen
Slide 9: Focused on Enrichment Value
9 Focused on Enrichment Value Ex te rn al R epo rt in g Grou p s Ope ra ti on al F ocus A rea s Rail Leasing Construction Energy Inland Barge Customer Sharing Internal Component Sourcing Shared Best Manufacturing Practices Facility Optimization Centralized Cost Savings Trinity focuses on collaborati
Slide 10: Seasoned Performer Across Market Conditions
Incorporated in 1933 with a strong corporate culture and commitment to Company values Seasoned management team knows how to assess the market, proactively plan for cycles and quickly adapt to changing market conditions Cost-effective and flexible manufacturing footprint is a competitive advant
Slide 11: Strategy and Vision: Operational
11 III. Strategy and Vision: Operational Be a premier, diversified industrial company that generates superior earnings and returns for shareholders Strategically Grow the Lease Fleet Selectively Build our Backlogs Diversify Through Organic Growth Acquire Complementary Product Portfolios Maximize Man
Slide 12: Strategy and Vision: Financial
12 Strategy and Vision: Financial Maintain a conservative and liquid balance sheet to be attractively positioned to capitalize on opportunities Working Capital Capital Expenditures Acquisitions Shareholder Distributions Cash, Cash Equivalents, & Short Term Marketable Securities $779 Corporate Revolv
Slide 13: Strategy and Vision: RIV Platform
13 Strategy and Vision: RIV Platform ▪ Railcar Investment Vehicles, or “RIVs”, are customized portfolios of leased railcars for institutional investors and other entities that are developed and managed by TrinityRail ▪ TrinityRail is the first in the industry to create a platform of RIVs for institu
Slide 14: IV. Financial Highlights
14 IV. Financial Highlights Trinity’s EPS Summary FY 2009 – LTM 03/17(3) LTM 03/17 vs. LTM 03/16(1) Revenues decreased 28.1% to $4.28 billion from $5.95 billion Operating profit decreased 55.0% to $531.5 million from $1.18 billion (2) EBITDA decreased 40.4% to $947.3 million from $1.59 billion
Slide 15: Guidance and Outlook (As of April 26, 2017)
15 Guidance and Outlook (As of April 26, 2017) Total Company EPS ~ $1.00- $1.25 for FY 2017 Manufacturing and Corporate Capital Expenditures ~ $100mm - $130mm in FY 2017 Elimination Impact of Net Income Attributable to Noncontrolling Interest ~ $0.03 per share in FY 2017 Rail Group Revenues ~ $1.7B
Slide 16: Appendix: Operating Business Summaries
16 Appendix: Operating Business Summaries
Slide 17: Rail Group
17 Rail Group Business Conditions/Demand Outlook Market Positioning Current Performance(4) Rail Group Revenues and OP Margin(1) Leading manufacturer of railcars, railcar axles, and coupling devices in North America Broadest product offering for railcar manufacturing in North America Networking
Slide 18: Railcar Leasing & Management Services Group
18 Railcar Leasing & Management Services Group Business Conditions/Demand Outlook Market Positioning Current Performance Leading provider of comprehensive railcar leasing and management services Marketed with railcar sales activities as TrinityRail® Provider of operating leases offering ‘one s
Slide 19: Inland Barge Group
Inland Barge Group Business Conditions/Demand Outlook Market Positioning Current Performance Inland Barge Group Revenues and OP Margin Leading manufacturer of inland barges and fiberglass barge covers in the United States Multiple barge manufacturing facilities on inland waterways enable rapid d
Slide 20: Construction Products Group
20 Construction Products Group Business Conditions/Demand Outlook Market Positioning Current Performance Construction Products Group Revenues and OP Margin(1) Leading U.S. manufacturer of highway guardrail, crash cushions, and other protective barriers Leading producer and distributor of lightwe
Slide 21: Energy Equipment Group
21 Energy Equipment Group Business Conditions/Demand Outlook Market Positioning Current Performance Energy Equipment Group Revenues and OP Margin Leading manufacturer of wind towers, steel utility structures, storage and distribution containers, tank heads for pressure and non-pressure vessels, an
Slide 22: How TrinityRail's RIV platform works
22 How TrinityRail’s RIV platform works Sources of Railcars for TrinityRail’s RIV platform Newly built leased railcars from TrinityRail Railcars acquired in secondary market Railcars from TrinityRail’s Wholly-Owned Fleet (i.e., “Reservoir of railcars”) TrinityRail’s Managed Fleet TrinityRail’s RIV p
Slide 23: Value proposition for institutional investors
23 Value proposition for institutional investors ▪ Railcars are a critical component of North America’s transportation infrastructure, transporting a diverse range of commodities, intermediate goods, and finished products ▪ Stable, hard asset investments with attractive returns and an inflationary h
Slide 24: Value proposition for Trinity
24 Value proposition for Trinity ▪ Enhances our ability to meet the needs of large customers ▪ Provides financial capacity to enhance lease origination capabilities and expand lease portfolio funding diversification ▪ Increases size of managed fleet, generating recurring management fees while allowi
Slide 25: Reconciliation of EBITDA
25 Reconciliation of EBITDA (1)(2) (in millions) “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
Slide 26: Reconciliation of PBT Margin – Railcar Leasing and Management Services Group
26 Reconciliation of PBT Margin – Railcar Leasing and Management Services Group (in millions except for PBT Margin) 2009 2010 2011 2012 2013 2014 2015 2016 LTM 03/17 From Leasing Operations: Revenue 329$ 461$ 493$ 529$ 587$ 632$ 700$ 701$ 709$ Operating Profit 129$ 200$ 225$ 243$ 267$ 288$ 331$ 313$
Slide 27: Footnotes
Slide 4 (1) Intersegment Revenues are eliminated and Leasing Revenues include revenues related to TRIP Holdings beginning in FY 2010; CPG Revenues for prior years have also been adjusted as a result of the divestiture of its Concrete business in March 2013 (2) FY 2009 EPS excludes a $325 million pre
Trinity Industries — Investor Presentation (May 2017) on 6ix