Reports full year GAAP and adjusted earnings
from continuing operations of $1.81 and $1.82 per diluted share,
respectively
Generates full year operating cash flow of
$588 million and net gains on lease portfolio sales of $57
million
Lease fleet utilization of 97.0% and Future
Lease Rate Differential ("FLRD") of positive 24.3% at
quarter-end
Delivered 17,570 railcars in the year;
backlog of $2.1 billion at year-end
Trinity Industries, Inc. (NYSE:TRN) today announced earnings
results for the fourth quarter and year ended December 31,
2024.
Financial and Operational Highlights –
Fourth Quarter
- Quarterly total company revenues of $629 million
- Quarterly income from continuing operations per common diluted
share ("EPS") of $0.38 and adjusted EPS of $0.39
- Lease fleet utilization of 97.0% and FLRD of positive 24.3% at
quarter-end
- Quarterly railcar deliveries of 3,760 and new railcar orders of
1,500
Financial and Operational Highlights –
Full Year
- Full year total company revenues of $3.1 billion
- Full year reported EPS of $1.81 and adjusted EPS of $1.82;
$0.44 improvement in adjusted EPS year over year
- Full year cash flow from continuing operations of $588 million
and net gains on lease portfolio sales of $57 million
- Full year Return on Equity ("ROE") of 13.3% and Adjusted ROE of
14.6%
2025 Guidance
- Industry deliveries of approximately 35,000 railcars
- Net fleet investment of $300 million to $400 million
- Operating and administrative capital expenditures of $45
million to $55 million
- EPS of $1.50 to $1.80
- Excludes items outside of our core business operations
Management Commentary
“Trinity Industries’ 2024 full year adjusted EPS of $1.82
represents a 32% increase over 2023, driven by higher lease rates,
significantly improved margin performance, and a higher volume of
external repairs. I extend my gratitude to the Trinity team for
their outstanding efforts this year,” stated Trinity’s Chief
Executive Officer and President Jean Savage. “We ended the year
with an Adjusted ROE of 14.6%, within our target range.
Furthermore, our cash flow from operations metric, which includes
net gains on lease portfolio sales, was $645 million, up 65% over
2023.”
Ms. Savage continued, “In our Railcar Leasing and Services
Group, we concluded the year with a 10% year over year revenue
increase. We have now repriced over half of our fleet in a higher
rate environment while maintaining a favorable utilization rate. We
expect these positive trends to continue, evidenced by our FLRD of
24.3%. In the Rail Products Group, the impact of improved labor and
operational efficiencies is evident with a 68% full year
improvement in profit despite relatively flat revenue
performance.”
“At our 2024 Investor Day, we emphasized that a less volatile
operating environment combined with the reduced cyclicality of our
platform will optimize our returns through the cycle. In 2025, we
expect industry deliveries of 35,000, approximately a 20% decrease
from 2024 as uncertainty around tariffs is delaying investment
decisions.”
“We are introducing our full year 2025 EPS guidance of $1.50 to
$1.80. This guidance range reflects continued leasing revenue
improvement, consistent operating margins, lower deliveries, and a
higher proportion of deliveries to our lease fleet with slightly
lower gains on lease portfolio sales in support of our net fleet
investment targets.” Ms. Savage concluded, “We believe that our
2025 performance will demonstrate the strength of our platform and
our ability to generate strong returns and consistent margin
performance.”
Consolidated Financial
Summary
Three Months Ended
December 31,
2024
2023
Year over Year – Comparison
($ in millions, except per
share amounts)
Revenues
$
629.4
$
797.9
Lower external deliveries, including
sustainable railcar conversions, in the Rail Products Group
Operating profit
$
112.0
$
148.7
Lower gains on lease portfolio sales and
higher employee-related costs, including incentive-based
compensation, as well as lower external deliveries in the Rail
Products Group, partially offset by improved efficiencies in the
Rail Products Group
Interest expense, net
$
66.9
$
67.7
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
31.9
$
68.1
EBITDA (1)
$
191.1
$
225.2
Effective tax expense rate
14.1
%
8.8
%
Q4 2024 – Changes in valuation
allowances
Q4 2023 – State apportionment and tax law
changes
Diluted EPS – GAAP
$
0.38
$
0.81
Diluted EPS – Adjusted (1)
$
0.39
$
0.82
Year Ended
December 31,
2024
2023
Year over Year – Comparison
($ in millions, except per
share amounts)
Revenues
$
3,079.2
$
2,983.3
Higher volume of external repairs and
higher lease rates in the Leasing Group and higher external
deliveries, partially offset by a lower volume of sustainable
railcar conversions in the Rail Products Group
Operating profit
$
491.5
$
417.0
Improved efficiencies and the mix of
railcars sold in the Rail Products Group and higher lease rates and
a higher volume of external repairs in the Leasing Group, partially
offset by lower gains on lease portfolio sales and higher
employee-related costs
Interest expense, net
$
273.5
$
265.5
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
152.7
$
119.4
EBITDA (1)
$
804.1
$
720.1
Effective tax expense rate
22.7
%
6.0
%
2023 tax rate includes benefits related to
the release of residual taxes out of AOCI, state apportionment and
tax law changes, and changes in valuation allowances
Diluted EPS – GAAP
$
1.81
$
1.43
Diluted EPS – Adjusted (1)
$
1.82
$
1.38
Net cash provided by operating activities
– continuing operations
$
588.1
$
309.0
Working capital improvements and
significant improvement in Rail Products Group operating margin
driving higher earnings
Cash flow from operations with net gains
on lease portfolio sales (1)
$
645.4
$
391.8
Net fleet investment
$
181.2
$
287.0
Returns of capital to stockholders
$
114.2
$
86.0
(1) Non-GAAP financial measure. See the
Reconciliations of Non-GAAP Measures section within this Press
Release for a reconciliation to the most directly comparable GAAP
measure and why management believes this measure is useful to
management and investors.
Business Group Summary
Three Months Ended
December 31,
2024
2023
Year over Year – Comparison
($ in millions)
Railcar Leasing and Services
Group
Revenues
$
287.1
$
278.1
Higher lease rates and net additions to
the lease fleet
Operating profit
$
120.5
$
141.0
Lower gains on lease portfolio sales and
higher maintenance and compliance costs, partially offset by higher
lease rates
Operating profit margin
42.0
%
50.7
%
Gains on lease portfolio sales
$
21.1
$
36.4
Fleet utilization (1)
97.0
%
97.5
%
FLRD (2)
+24.3 %
+23.7 %
Continued strength in current lease
rates
Owned lease fleet (in units) (1)
109,635
109,295
Investor-owned lease fleet (in units)
34,230
33,005
Rail Products Group
Revenues
$
526.3
$
612.3
Lower deliveries, including sustainable
railcar conversions
Operating profit
$
46.3
$
34.8
Improved labor and operational
efficiencies, partially offset by lower deliveries
Operating profit margin
8.8
%
5.7
%
New railcars:
Deliveries (in units)
3,760
4,000
Orders (in units)
1,500
840
Order value
$
191.9
$
156.1
Backlog value
$
2,145.5
$
3,200.9
Sustainable railcar conversions:
Deliveries (in units)
55
520
Eliminations
Eliminations – revenues
$
(184.0
)
$
(92.5
)
Eliminations – operating profit
$
(17.7
)
$
(1.6
)
Corporate and other
Selling, engineering, and administrative
expenses
$
32.8
$
26.6
Higher employee-related costs, including
higher incentive-based compensation and costs associated with
workforce reductions to improve our cost structure
December 31, 2024
December 31, 2023
Loan-to-value ratio
Wholly-owned subsidiaries
67.6
%
64.4
%
(1) Includes wholly-owned railcars,
partially-owned railcars, and railcars under leased-in
arrangements.
(2) FLRD calculates the implied change in
lease rates for railcar leases expiring over the next four
quarters. The FLRD assumes that these expiring leases will be
renewed at the most recent quarterly transacted lease rates for
each railcar type. We believe the FLRD is useful to both management
and investors as it provides insight into the near-term trend in
lease rates.
Additional Business
Items
- Total committed liquidity of $987 million as of December 31,
2024.
- In December 2024, our Board of Directors declared an increase
to our quarterly dividend from $0.28 per share to $0.30 per
share.
Conference Call
Trinity will hold a conference call at 8:00 a.m. Eastern on
February 20, 2025 to discuss its fourth quarter and full year
results. To listen to the call, please visit the Investor Relations
section of the Company's website at www.trin.net and access the
Events & Presentations webpage, or the live call can be
accessed at 1-888-317-6003 with the conference passcode "5284408".
Please call at least 10 minutes in advance to ensure a proper
connection. An audio replay may be accessed through the Company’s
website or by dialing 1-877-344-7529 with passcode "2712638" until
11:59 p.m. Eastern on February 27, 2025.
Additionally, the Company will provide a quarterly investor
presentation that will be accessible both within the webcast and on
Trinity's Investor Relations website under the Events and
Presentations portion of the site along with the Fourth Quarter
Earnings Call event weblink.
Non-GAAP Financial
Measures
We have included financial measures compiled in accordance with
generally accepted accounting principles ("GAAP") and certain
non-GAAP measures in this earnings press release to provide
management and investors with additional information regarding our
financial results. Non-GAAP measures should not be considered in
isolation or as a substitute for our reported results prepared in
accordance with GAAP and, as calculated, may not be comparable to
other similarly titled measures for other companies. For each
non-GAAP financial measure, a reconciliation to the most comparable
GAAP measure has been included in the accompanying tables. When
forward-looking non-GAAP measures are provided, quantitative
reconciliations to the most directly comparable GAAP measures are
not provided because management cannot, without unreasonable
effort, predict the timing and amounts of certain items included in
the computations of each of these measures. These factors include,
but are not limited to: the product mix of expected railcar
deliveries; the timing and amount of significant transactions and
investments, such as lease portfolio sales, capital expenditures,
and returns of capital to stockholders; and the amount and timing
of certain other items outside the normal course of our core
business operations.
About Trinity Industries
Trinity Industries, Inc., headquartered in Dallas, Texas, owns
businesses that are leading providers of rail transportation
products and services in North America. Our businesses market their
railcar products and services under the trade name TrinityRail®.
Our platform also includes the brands of RSI Logistics, a provider
of software and logistics solutions, and Holden America, a supplier
of railcar parts and components. Our platform provides railcar
leasing and management services; railcar manufacturing; railcar
maintenance and modifications; and other railcar logistics products
and services. Trinity reports its financial results in two
reportable business segments: (1) Railcar Leasing and Services
Group and (2) Rail Products Group. For more information, visit:
www.trin.net.
Some statements in this release, 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, intentions or strategies for the future, and
the assumptions underlying these forward-looking statements,
including, but not limited to, future financial and operating
performance, future opportunities and any other statements
regarding events or developments that Trinity believes or
anticipates will or may occur in the future. Trinity uses the words
“anticipates,” “assumes,” “believes,” “estimates,” “expects,”
“intends,” “forecasts,” “may,” “will,” “should,” “guidance,”
“projected,” “outlook,” and similar expressions to identify these
forward-looking statements. Forward-looking statements speak only
as of the date of this release, and Trinity expressly disclaims any
obligation or undertaking to disseminate any updates or revisions
to any forward-looking statement contained herein to reflect any
change in Trinity’s expectations with regard thereto or any change
in events, conditions or circumstances on which any such statement
is based, except as required by federal securities laws.
Forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from historical
experience or our present expectations, including but not limited
to risks and uncertainties regarding economic, competitive,
governmental, and technological factors affecting Trinity’s
operations, markets, products, services and prices, and such
forward-looking statements are not guarantees of future
performance. For a discussion of such risks and uncertainties,
which could cause actual results to differ from those contained in
the forward-looking statements, see “Risk Factors” and
“Forward-Looking Statements” in Trinity’s Annual Report on Form
10-K for the most recent fiscal year, as may be revised and updated
by Trinity’s Quarterly Reports on Form 10-Q, and Trinity’s Current
Reports on Form 8-K.
- TABLES TO FOLLOW -
Trinity Industries, Inc.
Condensed Consolidated Statements of
Operations
(in millions, except per share
amounts)
(unaudited)
Three Months Ended
December 31,
Year Ended December
31,
2024
2023
2024
2023
Revenues
$
629.4
$
797.9
$
3,079.2
$
2,983.3
Operating costs:
Cost of revenues
474.4
637.0
2,411.0
2,456.2
Selling, engineering, and administrative
expenses
61.6
48.6
235.7
201.9
Gains on dispositions of property:
Lease portfolio sales
21.1
36.4
57.3
82.8
Other
1.8
—
6.0
6.8
Restructuring activities, net
4.3
—
4.3
(2.2
)
517.4
649.2
2,587.7
2,566.3
Operating profit
112.0
148.7
491.5
417.0
Interest expense, net
66.9
67.7
273.5
265.5
Other, net
(2.4
)
0.5
(3.8
)
2.5
Income from continuing operations before
income taxes
47.5
80.5
221.8
149.0
Provision (benefit) for income taxes:
Current
27.3
24.3
72.5
50.5
Deferred
(20.6
)
(17.2
)
(22.1
)
(41.5
)
6.7
7.1
50.4
9.0
Income from continuing operations
40.8
73.4
171.4
140.0
Loss from discontinued operations, net of
income taxes
(3.0
)
(5.3
)
(14.3
)
(13.4
)
Net income
37.8
68.1
157.1
126.6
Net income attributable to noncontrolling
interest
8.9
5.3
18.7
20.6
Net income attributable to Trinity
Industries, Inc.
$
28.9
$
62.8
$
138.4
$
106.0
Basic earnings per common share:
Income from continuing operations
$
0.39
$
0.83
$
1.86
$
1.47
Loss from discontinued operations
(0.04
)
(0.06
)
(0.17
)
(0.16
)
Basic net income attributable to Trinity
Industries, Inc.
$
0.35
$
0.77
$
1.69
$
1.31
Diluted earnings per common share:
Income from continuing operations
$
0.38
$
0.81
$
1.81
$
1.43
Loss from discontinued operations
(0.04
)
(0.06
)
(0.17
)
(0.16
)
Diluted net income attributable to Trinity
Industries, Inc.
$
0.34
$
0.75
$
1.64
$
1.27
Weighted average number of shares
outstanding:
Basic
81.9
81.6
81.9
81.2
Diluted
84.5
83.5
84.2
83.4
Trinity has certain unvested restricted stock awards that
participate in dividends on a nonforfeitable basis and are
therefore considered to be participating securities. Consequently,
diluted net income attributable to Trinity Industries, Inc. per
common share is calculated under both the two-class method and the
treasury stock method, and the more dilutive of the two
calculations is presented.
Trinity Industries, Inc.
Condensed Consolidated Balance
Sheets
(in millions)
(unaudited)
December 31, 2024
December 31, 2023
ASSETS
Cash and cash equivalents
$
228.2
$
105.7
Receivables, net of allowance
379.1
363.5
Income tax receivable
2.4
5.2
Inventories
476.2
684.3
Restricted cash
146.2
129.4
Property, plant, and equipment, net:
Railcars in our lease fleet:
Wholly-owned subsidiaries
5,948.1
5,931.8
Partially-owned subsidiaries
1,416.0
1,473.2
Deferred profit on railcar products
sold
(732.5
)
(750.2
)
Operating and administrative assets
356.5
350.0
6,988.1
7,004.8
Goodwill
221.5
221.5
Other assets
390.5
392.1
Total assets
$
8,832.2
$
8,906.5
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable
$
251.7
$
305.3
Accrued liabilities
353.0
302.3
Debt:
Recourse
597.8
794.6
Non-recourse:
Wholly-owned subsidiaries
4,021.3
3,819.2
Partially-owned subsidiaries
1,071.8
1,140.4
5,690.9
5,754.2
Deferred income taxes
1,075.6
1,103.5
Other liabilities
153.8
165.7
Stockholders' equity:
Trinity Industries, Inc.
1,058.9
1,037.1
Noncontrolling interest
248.3
238.4
1,307.2
1,275.5
Total liabilities and stockholders'
equity
$
8,832.2
$
8,906.5
Trinity Industries, Inc.
Condensed Consolidated Statements of
Cash Flows
(in millions)
(unaudited)
Year Ended
December 31,
2024
2023
Operating activities:
Net cash provided by operating activities
– continuing operations
$
588.1
$
309.0
Net cash used in operating activities –
discontinued operations
(14.3
)
(13.4
)
Net cash provided by operating
activities
573.8
295.6
Investing activities:
Capital expenditures – lease fleet
(541.9
)
(668.8
)
Proceeds from lease portfolio sales
360.7
381.8
Capital expenditures – operating and
administrative
(53.8
)
(41.3
)
Acquisitions, net of cash acquired
—
(62.2
)
Other investing activities
20.4
27.5
Net cash used in investing activities
(214.6
)
(363.0
)
Financing activities:
Net proceeds from (repayments of) debt
(80.1
)
133.8
Shares repurchased
(20.7
)
—
Dividends paid to common shareholders
(93.2
)
(86.0
)
Other financing activities
(25.9
)
(39.6
)
Net cash provided by (used in) financing
activities
(219.9
)
8.2
Net increase (decrease) in cash, cash
equivalents, and restricted cash
139.3
(59.2
)
Cash, cash equivalents, and restricted
cash at beginning of period
235.1
294.3
Cash, cash equivalents, and restricted
cash at end of period
$
374.4
$
235.1
Trinity Industries, Inc.
Reconciliations of Non-GAAP
Measures
(in millions, except per share
amounts)
(unaudited)
Adjusted Operating Results
We have supplemented the presentation of
our reported GAAP operating profit, income from continuing
operations before income taxes, provision (benefit) for income
taxes, income from continuing operations, net income from
continuing operations attributable to Trinity Industries, Inc., and
diluted income from continuing operations per common share
attributable to Trinity Industries, Inc. with non-GAAP measures
that adjust the GAAP measures to exclude the impact of certain
selling, engineering, and administrative expenses; gains on
dispositions of other property; restructuring activities, net;
interest expense, net; and certain other transactions or events (as
applicable), described in the footnotes to the tables below. These
non-GAAP measures are derived from amounts included in our GAAP
financial statements and are reconciled to the most directly
comparable GAAP financial measures in the tables below. Management
believes that these measures are useful to both management and
investors for analyzing the performance of our business without the
impact of certain items that are not indicative of our normal
business operations. Non-GAAP measures should not be considered in
isolation or as a substitute for our reported results prepared in
accordance with GAAP and, as calculated, may not be comparable to
other similarly titled measures for other companies.
Three Months Ended December
31, 2024
GAAP
Gains on dispositions of
property – other (1)
Restructuring activities,
net
Adjusted
Operating profit
$
112.0
$
(2.7
)
$
4.3
$
113.6
Income from continuing operations before
income taxes
$
47.5
$
(2.7
)
$
4.3
$
49.1
Provision (benefit) for income taxes
$
6.7
$
(0.6
)
$
0.9
$
7.0
Income from continuing operations
$
40.8
$
(2.1
)
$
3.4
$
42.1
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
31.9
$
(2.1
)
$
3.4
$
33.2
Diluted weighted average shares
outstanding
84.5
84.5
Diluted income from continuing operations
per common share attributable to Trinity Industries, Inc.
$
0.38
$
0.39
Year Ended December 31,
2024
GAAP
Gains on dispositions of
property – other (1)
Restructuring activities,
net
Interest expense, net
(2)
Adjusted
Operating profit
$
491.5
$
(2.7
)
$
4.3
$
—
$
493.1
Income from continuing operations before
income taxes
$
221.8
$
(2.7
)
$
4.3
$
(1.2
)
$
222.2
Provision (benefit) for income taxes
$
50.4
$
(0.6
)
$
0.9
$
(0.3
)
$
50.4
Income from continuing operations
$
171.4
$
(2.1
)
$
3.4
$
(0.9
)
$
171.8
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
152.7
$
(2.1
)
$
3.4
$
(0.9
)
$
153.1
Diluted weighted average shares
outstanding
84.2
84.2
Diluted income from continuing operations
per common share attributable to Trinity Industries, Inc.
$
1.81
$
1.82
Three Months Ended December
31, 2023
GAAP
Selling, engineering, and
administrative expenses (3)
Gains on dispositions of
property – other (4)
Interest expense, net
(2)
Adjusted
Operating profit
$
148.7
$
2.0
$
(1.4
)
$
—
$
149.3
Income from continuing operations before
income taxes
$
80.5
$
2.0
$
(1.4
)
$
(0.4
)
$
80.7
Provision (benefit) for income taxes
$
7.1
$
0.5
$
(0.4
)
$
(0.1
)
$
7.1
Income from continuing operations
$
73.4
$
1.5
$
(1.0
)
$
(0.3
)
$
73.6
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
68.1
$
1.5
$
(1.0
)
$
(0.3
)
$
68.3
Diluted weighted average shares
outstanding
83.5
83.5
Diluted income from continuing operations
per common share attributable to Trinity Industries, Inc.
$
0.81
$
0.82
Year Ended December 31,
2023
GAAP
Selling, engineering, and
administrative expenses (3)
Gains on dispositions of
property – other (4)
Restructuring activities,
net
Interest expense, net
(2)
Adjusted
Operating profit
$
417.0
$
4.0
$
(6.3
)
$
(2.2
)
$
—
$
412.5
Income from continuing operations before
income taxes
$
149.0
$
4.0
$
(6.3
)
$
(2.2
)
$
(1.5
)
$
143.0
Provision (benefit) for income taxes
$
9.0
$
1.0
$
(1.6
)
$
(0.6
)
$
(0.4
)
$
7.4
Income from continuing operations
$
140.0
$
3.0
$
(4.7
)
$
(1.6
)
$
(1.1
)
$
135.6
Net income from continuing operations
attributable to Trinity Industries, Inc.
$
119.4
$
3.0
$
(4.7
)
$
(1.6
)
$
(1.1
)
$
115.0
Diluted weighted average shares
outstanding
83.4
83.4
Diluted income from continuing operations
per common share attributable to Trinity Industries, Inc.
$
1.43
$
1.38
(1) Represents insurance recoveries in
excess of net book value for assets damaged by a fire at the
Company’s facility in Cartersville, Georgia in the first quarter of
2024.
(2) Represents interest income accretion
related to a seller-financing agreement associated with the sale of
certain non-operating assets.
(3) Represents the change in estimated
fair value of additional contingent consideration associated with
an acquisition.
(4) Represents insurance recoveries in
excess of net book value for assets damaged by a tornado at the
Company’s rail maintenance facility in Cartersville, Georgia in the
first quarter of 2021.
Adjusted Return on Equity
Adjusted Return on Equity (“Adjusted ROE”) is defined as a ratio
for which (i) the numerator is calculated as income or loss from
continuing operations, adjusted to exclude the effects of net
income or loss attributable to noncontrolling interest, and certain
other adjustments (net of income taxes), described in the footnotes
to the table below, which include certain selling, engineering, and
administrative expenses; gains on dispositions of other property;
restructuring activities, net; and interest expense, net; and (ii)
the denominator is calculated as average Trinity stockholders’
equity (which excludes noncontrolling interest). In the following
table, the numerator and denominator of our Adjusted ROE
calculation are reconciled to income from continuing operations and
total stockholders’ equity, respectively, which are the most
directly comparable GAAP financial measures. Management believes
that Adjusted ROE is a useful measure to both management and
investors as it provides an indication of the economic return on
the Company’s investments over time. Non-GAAP measures should not
be considered in isolation or as a substitute for our reported
results prepared in accordance with GAAP and, as calculated, may
not be comparable to other similarly titled measures for other
companies.
December 31, 2024
December 31, 2023
December 31, 2022
($ in millions)
Numerator:
Income from continuing operations
$
171.4
$
140.0
Net income attributable to noncontrolling
interest
(18.7
)
(20.6
)
Net income from continuing operations
attributable to Trinity Industries, Inc.
152.7
119.4
Adjustments (net of income taxes):
Selling, engineering, and administrative
expenses (1)
—
3.0
Gains on dispositions of property – other
(2)
(2.1
)
(4.7
)
Restructuring activities, net
3.4
(1.6
)
Interest expense, net (3)
(0.9
)
(1.1
)
Adjusted Net Income
$
153.1
$
115.0
Denominator:
Total stockholders' equity
$
1,307.2
$
1,275.5
$
1,269.6
Noncontrolling interest
(248.3
)
(238.4
)
(257.2
)
Trinity stockholders' equity
$
1,058.9
$
1,037.1
$
1,012.4
Average total stockholders' equity
$
1,291.4
$
1,272.6
Return on Equity (4)
13.3
%
11.0
%
Average Trinity stockholders' equity
$
1,048.0
$
1,024.8
Adjusted Return on Equity (5)
14.6
%
11.2
%
(1) Represents the change in estimated
fair value of additional contingent consideration associated with
an acquisition.
(2) Represents insurance recoveries in
excess of net book value for assets damaged at the Company’s
facility in Cartersville, Georgia in two separate events.
(3) Represents interest income accretion
related to a seller-financing agreement associated with the sale of
certain non-operating assets.
(4) Return on Equity is calculated as
income from continuing operations divided by average total
stockholders' equity.
(5) Adjusted Return on Equity is
calculated as adjusted net income divided by average Trinity
stockholders' equity, each as defined and reconciled above.
Cash Flow from Operations with Net Gains on Lease Portfolio
Sales
Cash flow from operations with net gains on lease portfolio
sales is a non-GAAP financial measure. We believe this measure is
useful to both management and investors as it provides a relevant
measure of liquidity and a useful basis for assessing the breadth
of the cash flow generation capabilities across our operating
platform, as well as our ability to fund our operations and repay
our debt. This measure is defined as net cash provided by operating
activities from continuing operations as computed in accordance
with GAAP, plus net gains on lease portfolio sales and is
reconciled to net cash provided by operating activities from
continuing operations, the most directly comparable GAAP financial
measure, in the following table. Non-GAAP measures should not be
considered in isolation or as a substitute for our reported results
prepared in accordance with GAAP and, as calculated, may not be
comparable to other similarly titled measures for other
companies.
Year Ended
December 31,
2024
2023
Net cash provided by operating activities
– continuing operations
$
588.1
$
309.0
Net gains on lease portfolio sales
57.3
82.8
Cash flow from operations with net gains
on lease portfolio sales
$
645.4
$
391.8
EBITDA and Adjusted EBITDA
“EBITDA” is defined as income from continuing operations plus
interest expense, income taxes, and depreciation and amortization
expense. Adjusted EBITDA is defined as EBITDA plus certain selling,
engineering, and administrative expenses; gains on dispositions of
other property; restructuring activities, net; and interest income.
EBITDA and Adjusted EBITDA are non-GAAP financial measures;
however, the amounts included in these calculations are derived
from amounts included in our GAAP financial statements. EBITDA and
Adjusted EBITDA are reconciled to net income, the most directly
comparable GAAP financial measure, in the following table. This
information is provided to assist management and investors in
making meaningful comparisons of our operating performance between
periods. We believe EBITDA is a useful measure for analyzing the
performance of our business. We also believe that EBITDA is
commonly reported and widely used by investors and other interested
parties as a measure of a company’s operating performance and debt
servicing ability because it assists in comparing performance on a
consistent basis without regard to capital structure, depreciation
or amortization (which can vary significantly depending on many
factors). EBITDA and Adjusted EBITDA should not be considered as
alternatives to net income as indicators of our operating
performance, or as alternatives to operating cash flows as measures
of liquidity. Non-GAAP measures should not be considered in
isolation or as a substitute for our reported results prepared in
accordance with GAAP and, as calculated, may not be comparable to
other similarly titled measures for other companies.
Three Months Ended
December 31,
Year Ended December
31,
2024
2023
2024
2023
Net income
$
37.8
$
68.1
$
157.1
$
126.6
Less: Loss from discontinued operations,
net of income taxes
(3.0
)
(5.3
)
(14.3
)
(13.4
)
Income from continuing operations
40.8
73.4
171.4
140.0
Interest expense
70.0
71.4
288.5
277.9
Provision (benefit) for income taxes
6.7
7.1
50.4
9.0
Depreciation and amortization expense
73.6
73.3
293.8
293.2
EBITDA
191.1
225.2
804.1
720.1
Selling, engineering, and administrative
expenses
—
2.0
—
4.0
Gains on dispositions of property –
other
(2.7
)
(1.4
)
(2.7
)
(6.3
)
Restructuring activities, net
4.3
—
4.3
(2.2
)
Interest income
—
(0.4
)
(1.2
)
(1.5
)
Adjusted EBITDA
$
192.7
$
225.4
$
804.5
$
714.1
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250220968015/en/
Investor Contact: Leigh Anne Mann Vice President,
Investor Relations Trinity Industries, Inc. (Investors)
214/631-4420
Media Contact: Jack L. Todd Vice President, Public
Affairs Trinity Industries, Inc. (Media Line) 214/589-8909
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