Trinity Industries, Inc. · NYSE:TRN
Trinity Industries — Investor Presentation (August 2010)
25 slides from Trinity Industries's investor presentation, August 2010
Slide 1: Trinity Industries, Inc.
Trinity Industries, Inc. August 2010
Slide 2: Forward Looking Statements
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 st
Slide 3: Trinity is a Multi-Industry Company
Trinity is a Multi-Industry Company Trinity provides infrastructure products and services through five distinct business groups: Rail Group 11% of Revenue Railcar Leasing and Management Services 20% of Revenue Group (1) Construction Products 26% of Revenue Group Energy Equipment Group 22% of Revenue
Slide 4: Key Market Leadership Positions
Trinity’s Key Market Leadership Positions Trinity’s Rail Group Largest manufacturer of railcars in North America Largest railcar axle manufacturer in North America Largest railcar coupling device manufacturer in North America Trinity’s Rail Leasing and Management Services Group Leading provi
Slide 5: Differentiating Strategies and Tactics
Trinity’s Differentiating Strategies and Tactics Trinity’s strategies and tactics are designed to improve our performance in all economic cycles During the last decade, we have enhanced our multi-industry portfolio by: Strategically growing the Leasing business to provide a solid base of earni
Slide 6: Revenues are More Diversified Than in the Past
Trinity’s Revenues are More Diversified Than in the Past External Revenue Composition External Revenue Composition FY 2000 LTM 06/30/10 21% 11% 6% 8% Rail Rail Leasing * Leasing 20% * CPG CPG 21% EEG 60% EEG 22% Barge 5% Barge 26% FY FY 2000 2000 Total Total Consolidated Consolidated Revenue Revenue
Slide 7: Trinity Today
Trinity Today Trinity’s Multi-Industry Model Manufacturing Businesses Leasing and Management Services Maintain leadership positions Expand relationships with end-users Utilize significant manufacturing of railcars footprint in Mexico Introduce new products into the Optimize operational flexibil
Slide 8: Trinity Has Navigated Through Economic Cycles
Trinity Has Navigated Through Economic Cycles Trinity’s businesses have gone through multiple economic cycles Our seasoned management knows how to assess the market, proactively plan for cycles and then react to changes in economic conditions We have a performance driven culture that thrives o
Slide 9: Trinity is Well Positioned for All Economic Cycles
Trinity is Well Positioned for All Economic Cycles Trinity had strong momentum as the positive economic cycle came to an end Trinity had significant backlogs as we entered the economic downturn They have enabled normal operating conditions and the opportunity to proactively plan our production
Slide 10: Manufacturing Flexibility is a Differentiator
Trinity’s Manufacturing Flexibility is a Differentiator Trinity’s manufacturing flexibility enhances our opportunistic approach – We quickly respond to market changes and customer needs – Our resources are directed toward highest and best use Manufacturing Manufacturing flexibility flexibility acros
Slide 11: Trinity Has an Excellent Competitive Position in Mexico
Trinity Has an Excellent Competitive Position in Mexico More than five decades of in-country operating experience Multiple plants in Mexico Trinity’s significant manufacturing capacity in Mexico continues to grow Strong logistics network in place – 215 truckloads crossing the border per mont
Slide 12: Companies Have Continuous Synergistic Connections
Trinity’s Companies Have Continuous Synergistic Connections Trinity’s businesses place a high priority on collaborating with each other to continuously generate synergies that provide competitive benefits: Internal Shared Shared Best Best Practices Internal Sourcing Sourcing of of Practices Componen
Slide 13: Railcar Leasing Company Provides Stability
Trinity’s Railcar Leasing Company Provides Stability Trinity Industries Leasing Company’s (TILC) growth over the last decade has established a predictable revenue and earnings base TILC continues to provide strategic benefits to our manufacturing businesses in addition to its strong financial pe
Slide 14: Railcar Lease Fleet has Grown Rapidly
Trinity’s Railcar Lease Fleet has Grown Rapidly We have built a large fleet of young railcars with long-term leases Our lease fleet will provide a large base of revenues and earnings during the economic down cycle 60,000 50,000 8 ..8 % % f 1 18 8 40,000 R o of A G GR C CA Cars in Fleet 30,000 20
Slide 15: Rail Industry Shipment Summary and Projections
Rail Industry Shipment Summary and Projections A look at two 20-year periods of time: 100,000 25 years from peak 1.2 million railcars = 60,500 cars per year avg. 90,000 1964-1983 42,830 cars per 731,000 railcars = 36,500 cars per year avg. year avg. 80,000 1984-2003 2010P – 2015P 70,000 Major indust
Slide 16: Liquidity Position is Strong
Trinity’s Liquidity Position is Strong As of June 30th, 2010: Unrestricted Cash and Short-term Marketable Securities of $435.3 million Corporate Revolver availability of $339.3 million TILC Leasing Warehouse availability of $337.7 million Total available liquidity of approximately $1.1 billi
Slide 17: Balance Sheet Remains Solid
Trinity’s Balance Sheet Remains Solid As of June 30th, 2010: Unrestricted Cash and Short-term Marketable Securities of $435.3 million Corporate debt Senior Notes of $201.5 million; mature in 2014 Subordinated Convertible Notes of $450 million; first call/put in 2018 Leasing debt excluding
Slide 18: Recent Operating Results
Trinity’s Recent Operating Results* Revenues decreased 41.9% in LTM 6/30/10 Trinity’s Trinity’s Earnings Earnings Summary Summary FY FY 2005 2005 – – LTM LTM 6/30/10 6/30/10 versus LTM 6/30/09 from $3.5 billion to $2.1 $3.55 $3.47 $4.00 $2.64 billion $3.00 $1.42 $2.00 $0.73 ** Operating profit d
Slide 19: Appendix: Operating Business Summaries
Appendix: Operating Business Summaries
Slide 20: Rail Group
Rail Group Rail Rail Group Group Highlights Highlights Largest producer of railcars in North America Industry shipments of 13,100 railcars during LTM 6/30/10 with a backlog of 14,930 railcars as of 6/30/10 Largest producer of railcar axles, and coupling devices in North America Trinity shipm
Slide 21: Railcar Leasing and Management Services Group
Railcar Leasing and Management Services Group Trinity Trinity Leasing’s Leasing’s capabilities capabilities provide provide the the following following advantages: advantages: Leading provider of comprehensive railcar leasing and management services Leasing complements product offering (one-stop
Slide 22: Inland Barge Group
Inland Barge Group Largest Largest manufacturer manufacturer of of barges barges that that transport transport Inland Inland Barge Barge Group Group Highlights Highlights goods through U.S. inland waterways goods through U.S. inland waterways Revenues down 31.7% in LTM 6/30/10 vs. LTM 6/30/09
Slide 23: Construction Products Group
Construction Products Group Leading Texas producer of concrete and Construction aggregates Construction Products Products Group Group Highlights Highlights Revenues down 13% LTM 6/30/10 vs. LTM 6/30/09 Only full-line manufacturer of highway guardrail and crash cushions in the United States; pl
Slide 24: Energy Equipment Group
Energy Equipment Group Leading North American producer in fast-growing Energy Energy Equipment Equipment Group Group Highlights Highlights structural wind tower business Structural Wind Towers: Revenues grew from $11mm in 2004 to $299.2mm in LTM Leading producer of propane tanks, tank 6/30/10
Slide 25: Reconciliation of EBITDA
Reconciliation of EBITDA 2005 2006 2007 2008 2009 LTM 6/10 Income (loss) from continuing operations $110.5 $212.6 $289.8 $282.4 ($137.5) $63.3 ** Add: Interest expense 42.2 68.7 84.5 109.4 123.2 156.4 Provision for income taxes 65.6 131.3 165.1 171.4 (9.4) 40.6 Depreciation & amortization 76.2 87.6
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