Trinity Industries, Inc. · NYSE:TRN
Trinity Industries — Investor Presentation (May 2013)
21 slides from Trinity Industries's investor presentation, May 7, 2013
Slide 1: Trinity Industries, Inc. May 2013
Trinity Industries, Inc. May 2013
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 2007 2008 2009 2010 2011 2012 LTM 03/13 Rail Group Leasing Barge CPG EEG All Other EPS, Total Company-diluted I. Trinity Industries, Inc. Overview 4 Trinity Industries, Inc. is a diversified
Slide 5: II. 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
Diversified Portfolio of Businesses 7 PRESENT (LTM 03/13) MEASUREABLE PROGRESS OVER LAST 10 YEARS Total Revenues = $3.8 B Our diversified portfolio of businesses generated a higher level of EPS on a similar level of deliveries during the last cyclical rail industry downturn (1) Operating Profit Excl
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 Various Market Conditions
10 Seasoned Performer Across Various Market Conditions Trinity is uniquely positioned for growth across various economic conditions Seasoned management team knows how to assess the market, proactively plan for cycles and address changes in economic conditions Manufacturing flexibility is a cor
Slide 11: III. 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 03/31/13): ~ $1,082 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 Subordinate
Slide 13: IV. Financial Highlights: Trinity's Earnings Summary
$667 $443 $470 $612 $774 $813 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2008 2009 2010 2011 2012 LTM 03/13 $3.45 $1.33 $0.85 $1.77 $3.19 $3.53 $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 2008 2009 2010 2011 2012 LTM 03/13 13 IV. Financial Highlights Trinity’s Earnings Summary FY 2008 –
Slide 14: Guidance and Outlook (As of May 1, 2013)
Guidance and Outlook (As of May 1, 2013) 14 Rail Group Revenues ~ $2.5 – 2.7 billion in FY 2013 OP Margin ~ 15 - 17% in FY 2013 Shipments ~ 20,500 – 22,000 in FY 2013 Leasing Group Revenues from Operations ~ $560 – 580mm in FY 2013 OP from Operations ~ $250 - 275mm in FY 2013 Revenue Eliminations ~
Slide 15: Appendix: Operating Business Summaries
Appendix: Operating Business Summaries
Slide 16: Rail Group
$2,382 $2,563 $895 $522 $1,275 $2,013 $2,172 -4.0% 0.0% 4.0% 8.0% 12.0% 16.0% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 2007 2008 2009 2010 2011 2012 LTM 03/13 Railcar Revenue Parts & Components Revenue OP Margin 16 Trinity delivered 19,580 railcars representing 36% of industry shipments during L
Slide 17: Railcar Leasing & Management Services Group
$272 $314 $329 $461 $493 $529 $535 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% $0 $100 $200 $300 $400 $500 $600 2007 2008 2009 2010 2011 2012 LTM 03/13 TILC Revenue TRIP Revenue Operations Margin PBT Margin 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 3/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/
Slide 18: Inland Barge Group
$493 $625 $527 $422 $549 $675 $653 0% 3% 6% 9% 12% 15% 18% 21% 24% $- $100 $200 $300 $400 $500 $600 $700 $800 2007 2008 2009 2010 2011 2012 LTM 03/13 Revenues OP Margin 18 Revenues up 13% in LTM 03/13 vs. LTM 03/12 Profitability continues to be strong compared to historical averages for this bus
Slide 19: Construction Products Group
$326 $361 $281 $354 $453 $484 $462 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% $- $100 $200 $300 $400 $500 $600 2007 2008 2009 2010 2011 2012 LTM 03/13 Highway Products Other OP Margin 19 Revenues and Operating Profit decreased 5% and 26% respectively LTM 03/13 vs. LTM 03/12 as a result of c
Slide 20: Energy Equipment Group
20 Structural Wind Towers: Revenues of $267 million in LTM 03/31/13 Backlog of $671 million(1) as of 03/31/13 Plants are strategically located along the central corridor where the majority of wind farms are installed Demonstrated our flexible manufacturing platform and shifted excess wind to
Slide 21: Reconciliation of EBITDA
2008 2009 2010 2011 2012 LTM 03/13 Income (loss) from continuing operations $266.8 ($140.8) $69.4 $146.8 $251.9 $271.7 Add: Interest expense 109.4 123.1 182.1 185.3 194.7 196.0 Provision/(Benefit) for income taxes 163.5 (11.5) 37.3 92.2 134.0 149.5 Depreciation & amortization expense 126.8 147.1 180
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