Trinity Industries, Inc. · NYSE:TRN
Trinity Industries — Investor Presentation (November 2012)
21 slides from Trinity Industries's investor presentation, Nov 6, 2012
Slide 1: Trinity Industries, Inc. November 2012
Trinity Industries, Inc. November 2012 Exhibit 99.1
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: Agenda
3 Agenda I. Overview II. Key Investment Considerations III. Strategy and Vision IV. Financial Highlights V. Appendix
Slide 4: Trinity Industries, Inc. Overview
$- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2005 2006 2007 2008 2009 2010 2011 LTM 9/12 Rail Group Leasing Barge CPG EEG All Other EPS, Continuing Ops I. Trinity Industries, Inc. Overview 4 Trinity Industries, Inc. is a diversified in
Slide 5: Key Investment Considerations
II. Key Investment Considerations 5 Leading Market Positions Diversified Portfolio of Businesses Flexible and Cost-Effective Manufacturing Seasoned Performers Enrichment Value Focused
Slide 6: Leading Market Positions
Leading Market Positions 6 Rail Group Leading manufacturer of railcars in North America Leading manufacturer of railcar axles in North America Leading manufacturer of railcar coupling devices in North America Railcar Leasing and Management Services Group Leading provider of railcar leasing a
Slide 7: Diversified Portfolio of Businesses
27% 30% 11% 2% 30% Rail Leasing CPG EEG Barge Diversified Portfolio of Businesses 7 PAST (FY 2000) PRESENT (LTM 9/12) MEASUREABLE PROGRESS Total Revenues = $2.7 B Total Revenues = $3.8 B 60% 5% 21% 6% 8% 55% 14% 19% 4% 8% Rail Leasing CPG EEG Barge Revenues Operating Profit(1) Operating Profit(1) Ou
Slide 8: Flexible and Cost-Effective Manufacturing
Flexible and Cost-Effective Manufacturing 8 Flexibility Cost-Effective Trinity's manufacturing flexibility across product and business segments enhances our ability to opportunistically respond to changes in market demand Trinity’s manufacturing scale, vertical integration, and presence in the South
Slide 9: Enrichment Value Focused
Enrichment Value Focused 9 E x te rn a l R e p o rti n g G ro u p s O p e ra tio n a l Foc u s A re a s Rail Leasing Construction Energy Inland Barge Customer Sharing Internal Component Sourcing Shared Best Manufacturing Practices Facility Optimization Centralized Cost Savings Trinity focuses on col
Slide 10: Seasoned Performer Across Economic Cycles
10 Seasoned Performer Across Economic Cycles Trinity is uniquely positioned to emerge from a severe down cycle with more opportunity for growth to generate significant profits during an up cycle Seasoned management team knows how to assess the market, proactively plan for cycles and address chan
Slide 11: Strategy and Vision: Operational
III. Strategy and Vision: Operational 11 Strategically Grow the Lease Fleet Maximize Manufacturing Efficiency Selectively Build our Backlogs Diversify Through Organic Growth Acquire Complementary Product Portfolios Be a premier, diversified industrial company that generates superior earnings and ret
Slide 12: Strategy and Vision: Financial
Liquidity (at 9/30/12): ~ $758 mm Strategy and Vision: Financial 12 Maintain a conservative and liquid balance sheet to be attractively positioned to capitalize on opportunities Working Capital Capital Expenditures Acquisitions Shareholder Distributions Corporate Debt(1) - Convertible Subordinated N
Slide 13: Financial Highlights: Earnings Summary
$295 $500 $658 $704 $462 $488 $616 $762 $0 $100 $200 $300 $400 $500 $600 $700 $800 2005 2006 2007 2008 2009 2010 2011 LTM 9/12 $1.44 $2.72 $3.55 $3.47 $1.33 $0.85 $1.77 $2.99 $- $0.50 $1. 0 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 005 2006 2007 2008 2009 2010 2011 LTM 9/12 13 IV. Financial Highlights Tri
Slide 14: Guidance and Outlook
Guidance and Outlook (As of October 25, 2012) 14 Any forward-looking statements made by the Company speak only as of the date on which they are made. The Company is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result
Slide 15: Appendix: Operating Business Summaries
Appendix: Operating Business Summaries
Slide 16: Rail Group
$1,816 $2,143 $2,382 $2,563 $895 $522 $1,275 $1,895 -4.0% 0.0% 4.0% 8.0% 12.0% 16.0% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 2005 2006 2007 2008 2009 2010 2011 LTM 9/12 Railcar Revenue Parts & Components Revenue OP Margin 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 Ra
Slide 17: Railcar Leasing & Management Services Group
$168 $215 $272 $314 $329 $461 $493 $523 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% $0 $100 $200 $300 $400 $500 $600 2005 2006 2007 2008 2009 2010 2011 LTM 9/12 TILC Revenue TRIP Revenue Operations Margin PBT Margin (from Ops) 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 3/00 12/ 1 12/ 2 1 /03 12/04 2
Slide 18: Inland Barge Group
$241 $371 $493 $625 $527 $422 $549 $659 0% 3% 6% 9% 12% 15% 18% 21% 24% $- $100 $200 $300 $400 $500 $600 $700 2005 2006 2007 2008 2009 2010 2011 LTM 9/12 Revenues OP Margin 18 Revenues up 25.5% in LTM 9/30/12 vs. LTM 9/30/11 Profitability continues to be strong compared to historical averages fo
Slide 19: Construction Products Group
$622 $695 $733 $741 $539 $579 $590 $609 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% $- $100 $200 $300 $400 $500 $600 $700 $800 2005 2006 2007 2008 2009 2010 2011 LTM 9/12 Highway Products Concrete & Aggregate Other OP Margin 19 Revenues increased 5.5% and Operating Profit increased 2.0% LTM 09/30/12 vs.
Slide 20: Energy Equipment Group
$235 $337 $434 $633 $510 $ 420 $473 $516 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% $- $100 $200 $300 $400 $500 $600 $700 2005 2006 2007 2008 2009 2010 2011 LTM 9/12 Wind Tower Revenues Other Revenues OP Margin 20 Structural Wind Towers: Revenues of $246 million in LTM 9/30/12 Backlog of $754 million(1)
Slide 21: Reconciliation of EBITDA
2005 2006 2007 2008 2009 2010 2011 LTM 9/12 Income (loss) from continuing operations $110.5 $212.6 $289.8 $282.4 ($137.7) $75.4 $145.7 $239.8 Add: Interest expense 42.2 68.7 84.5 109.4 123.2 182.1 185.3 192.7 Provision/(Benefit) for income taxes 65.6 131.3 165.1 171.4 (9.4) 40.9 91.8 131.7 Depreciat
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