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As Of Filer Filing For·On·As Docs:Size 10/24/19 Trinity Industries Inc 10-Q 9/30/19 95:19M |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 2.49M 2: EX-10.1 Material Contract HTML 165K 3: EX-10.1.1 Material Contract HTML 97K 4: EX-31.1 Certification -- §302 - SOA'02 HTML 34K 5: EX-31.2 Certification -- §302 - SOA'02 HTML 34K 6: EX-32.1 Certification -- §906 - SOA'02 HTML 29K 7: EX-32.2 Certification -- §906 - SOA'02 HTML 29K 81: R1 Document and Entity Information HTML 81K 46: R2 Consolidated Statements of Operations (Unaudited) HTML 148K 15: R3 Consolidated Statements of Operations Consolidated HTML 34K Statements of Operations (Unaudited) (Parenthetical) 68: R4 Consolidated Statements of Comprehensive Income HTML 68K (Unaudited) 78: R5 Consolidated Statements of Comprehensive Income HTML 37K (Unaudited) (Parenthetical) 44: R6 Consolidated Balance Sheets HTML 138K 13: R7 Consolidated Balance Sheets (Parenthetical) HTML 45K 66: R8 Consolidated Statements of Cash Flows (Unaudited) HTML 137K 82: R9 Consolidated Statements of Cash Flows (Unaudited) HTML 29K (Parenthetical) 70: R10 Consolidated Statement of Stockholders' Equity HTML 132K (Unaudited) 85: R11 Consolidated Statement of Stockholders' Equity HTML 32K (Unaudited) (Parenthetical) 54: R12 Summary of Significant Accounting Policies HTML 157K 23: R13 Discontinued Operations Discontinued Operations HTML 63K 71: R14 Derivative Instruments and Fair Value Accounting HTML 123K 86: R15 Segment Information HTML 158K 55: R16 Partially-Owned Leasing Subsidiaries HTML 38K 24: R17 Railcar Leasing and Management Services Group HTML 253K 72: R18 Property, Plant, and Equipment HTML 63K 84: R19 Debt HTML 176K 36: R20 Income Taxes HTML 33K 25: R21 Employee Retirement Plans HTML 61K 57: R22 Accumulated Other Comprehensive Loss HTML 52K 89: R23 Common Stock and Stock-Based Compensation HTML 47K 37: R24 Earnings Per Common Share HTML 100K 26: R25 Contingencies HTML 53K 58: R26 Financial Statements for Guarantors of the Senior HTML 729K Notes 90: R27 Summary of Significant Accounting Policies HTML 179K (Policies) 35: R28 Derivative Instruments and Fair Value Accounting HTML 101K Derivatives (Policies) 27: R29 Common Stock and Stock-Based Compensation HTML 50K Stockholders Equity (Policies) 22: R30 Summary of Significant Accounting Policies HTML 140K (Tables) 52: R31 Discontinued Operations Discontinued Operations HTML 64K Income Statement (Tables) 88: R32 Derivative Instruments and Fair Value Accounting HTML 103K Derivatives and Hedging (Tables) 74: R33 Derivative Instruments and Fair Value Accounting HTML 51K Fair Value Tables (Tables) 21: R34 Segment Information (Tables) HTML 158K 51: R35 Railcar Leasing and Management Services Group HTML 263K (Tables) 87: R36 Property, Plant, and Equipment (Tables) HTML 63K 73: R37 Debt (Tables) HTML 164K 20: R38 Employee Retirement Plans (Tables) HTML 55K 53: R39 Accumulated Other Comprehensive Loss (Tables) HTML 51K 34: R40 Common Stock and Stock-Based Compensation Stock HTML 38K Based Compensation (Tables) 41: R41 Earnings Per Common Share (Tables) HTML 97K 92: R42 Financial Statements for Guarantors of the Senior HTML 562K Notes (Tables) 60: R43 Summary of Significant Accounting Policies Revenue HTML 48K Recognition and Remaining performance obligation (Details) 33: R44 Summary of Significant Accounting Policies Lessee HTML 102K Accounting (Details) 40: R45 Summary of Significant Accounting Policies Lessor HTML 101K Accounting (Details) 91: R46 Summary of Significant Accounting Policies HTML 30K Goodwill (Details) 59: R47 Summary of Significant Accounting Policies HTML 46K Warranties (Details) 32: R48 Summary of Significant Accounting Policies - HTML 39K Recent Accounting Pronouncement (Details) 43: R49 Discontinued Operations Discontinued Operations HTML 60K (Details) 49: R50 Discontinued Operations Related Party Transactions HTML 33K (Details) 17: R51 Derivative Instruments and Fair Value Accounting HTML 93K Derivative Instruments (Details) 64: R52 Derivative Instruments and Fair Value Accounting HTML 54K Derivative Effect on Interest (Details) 75: R53 Derivative Instruments and Fair Value Accounting - HTML 52K Assets and liabilities Measured at fair value on recurring basis (Details) 50: R54 Segment Information - Financial information for HTML 66K segments (Details) 18: R55 Segment Information - Narrative (Details) HTML 29K 65: R56 Partially-Owned Leasing Subsidiaries - Narrative HTML 48K (Details) 76: R57 Railcar Leasing and Management Services Group - HTML 92K Selected consolidating financial information for the Leasing Group (Details) 48: R58 Railcar Leasing and Management Services Group - HTML 88K Selected consolidating income statement information for the Leasing Group (Details) 19: R59 Railcar Leasing and Management Services Group - HTML 43K Schedule of proceeds from leased railcars (Details) 61: R60 Railcar Leasing and Management Services Group - HTML 49K Future contractual minimum rental revenues on leases (Details) 94: R61 Railcar Leasing and Management Services Group - HTML 67K Future operating lease obligations and future contractual minimum rental revenues (Details) 38: R62 Railcar Leasing and Management Services Group - HTML 86K Narrative (Details) 30: R63 Property, Plant, and Equipment - Components of HTML 68K property, plant, and equipment (Details) 62: R64 Debt - Components of debt (Details) HTML 103K 95: R65 Debt - Remaining principal payments under existing HTML 92K debt agreements (Details) 39: R66 Debt - Narrative (Details) HTML 118K 31: R67 Income Taxes Narrative (Details) HTML 37K 63: R68 Employee Retirement Plans - Components of net HTML 48K retirement cost (Details) 93: R69 Employee Retirement Plans - Narrative (Details) HTML 55K 80: R70 Accumulated Other Comprehensive Loss - Changes in HTML 89K accumulated other comprehensive loss (Details) 69: R71 Common Stock and Stock-Based Compensation HTML 57K Stockholders Equity (Details) 16: R72 Common Stock and Stock-Based Compensation HTML 48K Stock-based Compensation (Details) 47: R73 Earnings Per Common Share - EPS calculation HTML 111K (Details) 77: R74 Contingencies - Narrative (Details) HTML 64K 67: R75 Financial Statements for Guarantors of the Senior HTML 155K Notes - Statement of Operations and Comprehensive Income (Details) 14: R76 Financial Statements for Guarantors of the Senior HTML 140K Notes - Balance Sheet (Details) 45: R77 Financial Statements for Guarantors of the Senior HTML 206K Notes - Statement of Cash Flows (Details) 83: R78 Financial Statements for Guarantors of the Senior HTML 47K Notes - Narrative (Details) 56: XML IDEA XML File -- Filing Summary XML 174K 79: XML XBRL Instance -- trn930201910q_htm XML 6.07M 29: EXCEL IDEA Workbook of Financial Reports XLSX 129K 9: EX-101.CAL XBRL Calculations -- trn-20190930_cal XML 199K 10: EX-101.DEF XBRL Definitions -- trn-20190930_def XML 1.29M 11: EX-101.LAB XBRL Labels -- trn-20190930_lab XML 2.26M 12: EX-101.PRE XBRL Presentations -- trn-20190930_pre XML 1.55M 8: EX-101.SCH XBRL Schema -- trn-20190930 XSD 203K 28: JSON XBRL Instance as JSON Data -- MetaLinks 454± 709K 42: ZIP XBRL Zipped Folder -- 0000099780-19-000125-xbrl Zip 591K
Document |
(Mark One) | |
i ☑ | QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
OR | |
i ☐ | TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i Delaware | i 75-0225040 | ||
(State
or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||
i 2525 N. Stemmons Freeway | |||
i Dallas, | i Texas | i 75207-2401 | |
(Address
of principal executive offices) | (Zip Code) |
Title
of each class | Trading Symbol(s) | Name of each exchange on which registered |
i Common Stock | i TRN | i New
York Stock Exchange |
Caption | Page |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions, except per share amounts) | |||||||||||||||
Revenues: | |||||||||||||||
Manufacturing | $ | i 487.4 | $ | i 379.7 | $ | i 1,351.1 | $ | i 1,159.4 | |||||||
Leasing | i 326.2 | i 227.2 | i 803.3 | i 614.7 | |||||||||||
i 813.6 | i 606.9 | i 2,154.4 | i 1,774.1 | ||||||||||||
Operating
costs: | |||||||||||||||
Cost of revenues: | |||||||||||||||
Manufacturing | i 430.7 | i 333.5 | i 1,181.9 | i 1,003.4 | |||||||||||
Leasing | i 218.4 | i 133.0 | i 509.1 | i 344.9 | |||||||||||
i 649.1 | i 466.5 | i 1,691.0 | i 1,348.3 | ||||||||||||
Selling,
engineering, and administrative expenses: | |||||||||||||||
Manufacturing | i 27.5 | i 26.3 | i 77.2 | i 72.9 | |||||||||||
Leasing | i 10.7 | i 11.9 | i 36.2 | i 36.7 | |||||||||||
Other | i 23.9 | i 37.4 | i 78.1 | i 115.0 | |||||||||||
i 62.1 | i 75.6 | i 191.5 | i 224.6 | ||||||||||||
Gains
(losses) on dispositions of property: | |||||||||||||||
Net gains on railcar lease fleet sales owned more than one year at the time of sale | i 18.1 | i 9.4 | i 44.7 | i 21.0 | |||||||||||
Other | ( i 0.2 | ) | i 1.0 | i 2.5 | i 3.1 | ||||||||||
i 17.9 | i 10.4 | i 47.2 | i 24.1 | ||||||||||||
Total
operating profit | i 120.3 | i 75.2 | i 319.1 | i 225.3 | |||||||||||
Other
(income) expense: | |||||||||||||||
Interest income | ( i 1.8 | ) | ( i 2.4 | ) | ( i 4.7 | ) | ( i 10.0 | ) | |||||||
Interest
expense | i 55.8 | i 42.8 | i 165.5 | i 132.9 | |||||||||||
Other,
net | i — | ( i 0.4 | ) | i 0.2 | ( i 3.5 | ) | |||||||||
i 54.0 | i 40.0 | i 161.0 | i 119.4 | ||||||||||||
Income
from continuing operations before income taxes | i 66.3 | i 35.2 | i 158.1 | i 105.9 | |||||||||||
Provision
for income taxes | i 18.2 | i 6.7 | i 41.2 | i 24.9 | |||||||||||
Income
from continuing operations | i 48.1 | i 28.5 | i 116.9 | i 81.0 | |||||||||||
Income
(loss) from discontinued operations, net of provision (benefit) for income taxes of $(0.1), $4.0, $(0.6), and $21.2 | ( i 0.4 | ) | ( i 0.2 | ) | ( i 2.3 | ) | i 54.4 | ||||||||
Net
income | i 47.7 | i 28.3 | i 114.6 | i 135.4 | |||||||||||
Net
income (loss) attributable to noncontrolling interest | ( i 1.3 | ) | i 0.6 | ( i 1.4 | ) | i 3.4 | |||||||||
Net
income attributable to Trinity Industries, Inc. | $ | i 49.0 | $ | i 27.7 | $ | i 116.0 | $ | i 132.0 | |||||||
Basic
earnings per common share: | |||||||||||||||
Income from continuing operations | $ | i 0.39 | $ | i 0.19 | $ | i 0.91 | $ | i 0.52 | |||||||
Income
(loss) from discontinued operations | i — | i — | ( i 0.02 | ) | i 0.37 | ||||||||||
Basic
net income attributable to Trinity Industries, Inc. | $ | i 0.39 | $ | i 0.19 | $ | i 0.89 | $ | i 0.89 | |||||||
Diluted
earnings per common share: | |||||||||||||||
Income from continuing operations | $ | i 0.39 | $ | i 0.19 | $ | i 0.90 | $ | i 0.51 | |||||||
Income
(loss) from discontinued operations | i — | i — | ( i 0.02 | ) | i 0.36 | ||||||||||
Diluted
net income attributable to Trinity Industries, Inc. | $ | i 0.39 | $ | i 0.19 | $ | i 0.88 | $ | i 0.87 | |||||||
Weighted
average number of shares outstanding: | |||||||||||||||
Basic | i 124.7 | i 145.0 | i 127.6 | i 146.1 | |||||||||||
Diluted | i 126.0 | i 145.8 | i 129.2 | i 148.8 |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Net income | $ | i 47.7 | $ | i 28.3 | $ | i 114.6 | $ | i 135.4 | |||||||
Other
comprehensive income (loss): | |||||||||||||||
Derivative financial instruments: | |||||||||||||||
Unrealized
(losses) gains arising during the period, net of tax benefit of $1.4, $-, $5.6, and $- | ( i 4.6 | ) | i 0.2 | ( i 18.1 | ) | i 0.1 | |||||||||
Reclassification
adjustments for losses included in net income, net of tax benefit of $0.3, $0.2, $0.7, and $0.1 | i 1.0 | i 0.4 | i 2.9 | i 1.7 | |||||||||||
Currency
translation adjustment | i — | i 0.5 | i — | ( i 1.0 | ) | ||||||||||
Defined
benefit plans: | |||||||||||||||
Amortization of net actuarial losses, net of tax benefit of $0.3, $0.3, $0.9, and $0.9 | i 0.9 | i 1.0 | i 2.5 | i 2.7 | |||||||||||
( i 2.7 | ) | i 2.1 | ( i 12.7 | ) | i 3.5 | ||||||||||
Comprehensive
income | i 45.0 | i 30.4 | i 101.9 | i 138.9 | |||||||||||
Less:
comprehensive income (loss) attributable to noncontrolling interest | ( i 0.9 | ) | i 0.9 | ( i 0.4 | ) | i 4.5 | |||||||||
Comprehensive
income attributable to Trinity Industries, Inc. | $ | i 45.9 | $ | i 29.5 | $ | i 102.3 | $ | i 134.4 |
(unaudited) | |||||||
(in millions) | |||||||
ASSETS | |||||||
Cash
and cash equivalents | $ | i 97.6 | $ | i 179.2 | |||
Receivables,
net of allowance | i 304.7 | i 276.6 | |||||
Income
tax receivable | i 21.1 | i 40.4 | |||||
Inventories: | |||||||
Raw
materials and supplies | i 342.2 | i 342.5 | |||||
Work
in process | i 189.0 | i 119.3 | |||||
Finished
goods | i 101.7 | i 62.9 | |||||
i 632.9 | i 524.7 | ||||||
Restricted
cash, including partially-owned subsidiaries of $30.9 and $36.6 | i 117.5 | i 171.6 | |||||
Property,
plant, and equipment, at cost, including partially-owned subsidiaries of $2,057.5 and $2,032.0 | i 9,011.8 | i 8,253.4 | |||||
Less
accumulated depreciation, including partially-owned subsidiaries of $513.6 and $472.0 | ( i 2,095.1 | ) | ( i 1,919.0 | ) | |||
i 6,916.7 | i 6,334.4 | ||||||
Goodwill | i 208.8 | i 208.8 | |||||
Other
assets | i 343.8 | i 253.5 | |||||
Total
assets | $ | i 8,643.1 | $ | i 7,989.2 | |||
LIABILITIES
AND STOCKHOLDERS' EQUITY | |||||||
Accounts payable | $ | i 250.8 | $ | i 212.1 | |||
Accrued
liabilities | i 368.9 | i 368.3 | |||||
Debt: | |||||||
Recourse | i 472.7 | i 397.4 | |||||
Non-recourse: | |||||||
Wholly-owned
subsidiaries | i 2,923.2 | i 2,316.6 | |||||
Partially-owned
subsidiaries | i 1,289.3 | i 1,315.2 | |||||
i 4,685.2 | i 4,029.2 | ||||||
Deferred
income | i — | i 17.7 | |||||
Deferred
income taxes | i 784.1 | i 743.1 | |||||
Other
liabilities | i 94.8 | i 56.8 | |||||
Total
liabilities | i 6,183.8 | i 5,427.2 | |||||
Preferred
stock – 1.5 shares authorized and unissued | i — | i — | |||||
Common
stock – 400.0 shares authorized | i 1.3 | i 1.3 | |||||
Capital
in excess of par value | i — | i 1.2 | |||||
Retained
earnings | i 2,342.1 | i 2,326.1 | |||||
Accumulated
other comprehensive loss | ( i 130.5 | ) | ( i 116.8 | ) | |||
Treasury
stock | ( i 102.3 | ) | ( i 1.0 | ) | |||
i 2,110.6 | i 2,210.8 | ||||||
Noncontrolling
interest | i 348.7 | i 351.2 | |||||
Total
stockholders' equity | i 2,459.3 | i 2,562.0 | |||||
Total
liabilities and stockholders' equity | $ | i 8,643.1 | $ | i 7,989.2 |
Nine
Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(in millions) | |||||||
Operating activities: | |||||||
Net income | $ | i 114.6 | $ | i 135.4 | |||
(Income)
loss from discontinued operations, net of income taxes | i 2.3 | ( i 54.4 | ) | ||||
Adjustments
to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | i 210.5 | i 184.3 | |||||
Stock-based
compensation expense | i 21.4 | i 21.8 | |||||
Provision
for deferred income taxes | i 38.5 | i 36.4 | |||||
Net
gains on railcar lease fleet sales owned more than one year at the time of sale | ( i 44.7 | ) | ( i 21.0 | ) | |||
Gains
on dispositions of property and other assets | ( i 2.5 | ) | ( i 3.1 | ) | |||
Non-cash
interest expense | i 10.4 | i 15.0 | |||||
Other | ( i 4.3 | ) | ( i 1.3 | ) | |||
Changes
in operating assets and liabilities: | |||||||
(Increase) decrease in receivables | ( i 8.8 | ) | ( i 34.4 | ) | |||
(Increase)
decrease in inventories | ( i 108.2 | ) | ( i 78.5 | ) | |||
(Increase)
decrease in other assets | ( i 68.6 | ) | ( i 56.5 | ) | |||
Increase
(decrease) in accounts payable | i 38.7 | i 39.2 | |||||
Increase
(decrease) in accrued liabilities | ( i 28.8 | ) | ( i 2.8 | ) | |||
Increase
(decrease) in other liabilities | ( i 6.5 | ) | ( i 0.6 | ) | |||
Net
cash provided by operating activities – continuing operations | i 164.0 | i 179.5 | |||||
Net
cash provided by operating activities – discontinued operations | i — | i 140.4 | |||||
Net
cash provided by operating activities | i 164.0 | i 319.9 | |||||
Investing
activities: | |||||||
Decrease in short-term marketable securities | i — | i 319.5 | |||||
Proceeds
from dispositions of property and other assets | i 19.5 | i 6.9 | |||||
Proceeds
from railcar lease fleet sales owned more than one year at the time of sale | i 175.0 | i 123.4 | |||||
Capital
expenditures – leasing, net of sold lease fleet railcars owned one year or less with a net cost of $210.3 and $63.2 | ( i 854.3 | ) | ( i 675.8 | ) | |||
Capital
expenditures – manufacturing and other | ( i 63.3 | ) | ( i 30.0 | ) | |||
Other | ( i 0.2 | ) | ( i 1.9 | ) | |||
Net
cash used in investing activities – continuing operations | ( i 723.3 | ) | ( i 257.9 | ) | |||
Net
cash used in investing activities – discontinued operations | i — | ( i 53.1 | ) | ||||
Net
cash used in investing activities | ( i 723.3 | ) | ( i 311.0 | ) | |||
Financing
activities: | |||||||
Payments to retire debt | ( i 1,360.8 | ) | ( i 738.9 | ) | |||
Proceeds
from issuance of debt | i 2,010.2 | i 561.3 | |||||
Shares
repurchased | ( i 154.9 | ) | ( i 156.1 | ) | |||
Dividends
paid to common shareholders | ( i 60.8 | ) | ( i 58.1 | ) | |||
Purchase
of shares to satisfy employee tax on vested stock | ( i 8.0 | ) | ( i 11.5 | ) | |||
Distributions
to noncontrolling interest | ( i 2.1 | ) | ( i 10.3 | ) | |||
Other | i — | ( i 3.2 | ) | ||||
Net
cash provided by (used in) financing activities | i 423.6 | ( i 416.8 | ) | ||||
Net
decrease in cash, cash equivalents, and restricted cash | ( i 135.7 | ) | ( i 407.9 | ) | |||
Cash,
cash equivalents, and restricted cash at beginning of period | i 350.8 | i 973.8 | |||||
Cash,
cash equivalents, and restricted cash at end of period | $ | i 215.1 | $ | i 565.9 |
Common Stock | Capital in Excess
of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Trinity Stockholders’ Equity | Noncontrolling Interest | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | $0.01
Par Value | Shares | Amount | |||||||||||||||||||||||||||||||||||
(in millions, except par value and per common share amounts) | ||||||||||||||||||||||||||||||||||||||
Balances
at December 31, 2018 | i 133.3 | $ | i 1.3 | $ | i 1.2 | $ | i 2,326.1 | $ | ( i 116.8 | ) | ( i 0.1 | ) | $ | ( i 1.0 | ) | $ | i 2,210.8 | $ | i 351.2 | $ | i 2,562.0 | |||||||||||||||||
Net
income | — | — | — | i 30.6 | — | — | — | i 30.6 | ( i 0.5 | ) | i 30.1 | |||||||||||||||||||||||||||
Other
comprehensive (loss) income | — | — | — | — | ( i 4.1 | ) | — | — | ( i 4.1 | ) | i 0.3 | ( i 3.8 | ) | |||||||||||||||||||||||||
Cash
dividends declared on common stock ($0.17 per common share) | — | — | — | ( i 22.3 | ) | — | — | — | ( i 22.3 | ) | — | ( i 22.3 | ) | |||||||||||||||||||||||||
Stock-based
compensation expense | — | — | i 5.5 | — | — | — | — | i 5.5 | — | i 5.5 | ||||||||||||||||||||||||||||
Shares
repurchased | — | — | i 70.0 | — | — | ( i 3.5 | ) | ( i 89.0 | ) | ( i 19.0 | ) | — | ( i 19.0 | ) | ||||||||||||||||||||||||
Other
restricted share activity | — | — | i 0.6 | — | — | — | ( i 1.1 | ) | ( i 0.5 | ) | — | ( i 0.5 | ) | |||||||||||||||||||||||||
Distributions
to noncontrolling interest | — | — | — | — | — | — | — | i — | ( i 0.4 | ) | ( i 0.4 | ) | ||||||||||||||||||||||||||
Cumulative
effect of adopting new accounting standard | — | — | — | i 13.7 | — | — | — | i 13.7 | — | i 13.7 | ||||||||||||||||||||||||||||
Other | — | — | — | ( i 0.2 | ) | — | — | — | ( i 0.2 | ) | — | ( i 0.2 | ) | |||||||||||||||||||||||||
Balances
at March 31, 2019 | i 133.3 | $ | i 1.3 | $ | i 77.3 | $ | i 2,347.9 | $ | ( i 120.9 | ) | ( i 3.6 | ) | $ | ( i 91.1 | ) | $ | i 2,214.5 | $ | i 350.6 | $ | i 2,565.1 | |||||||||||||||||
Net
income | — | — | — | i 36.4 | — | — | — | i 36.4 | i 0.4 | i 36.8 | ||||||||||||||||||||||||||||
Other
comprehensive (loss) income | — | — | — | — | ( i 6.5 | ) | — | — | ( i 6.5 | ) | i 0.3 | ( i 6.2 | ) | |||||||||||||||||||||||||
Cash
dividends declared on common stock ($0.17 per common share) | — | — | — | ( i 21.6 | ) | — | — | — | ( i 21.6 | ) | — | ( i 21.6 | ) | |||||||||||||||||||||||||
Stock-based
compensation expense | — | — | i 7.5 | — | — | — | — | i 7.5 | — | i 7.5 | ||||||||||||||||||||||||||||
Shares
repurchased | — | — | — | — | — | ( i 2.1 | ) | ( i 44.0 | ) | ( i 44.0 | ) | — | ( i 44.0 | ) | ||||||||||||||||||||||||
Other
restricted share activity | i 0.7 | — | i 1.0 | — | — | ( i 0.5 | ) | ( i 8.5 | ) | ( i 7.5 | ) | — | ( i 7.5 | ) | ||||||||||||||||||||||||
Distributions
to noncontrolling interest | — | — | — | — | — | — | — | i — | ( i 0.5 | ) | ( i 0.5 | ) | ||||||||||||||||||||||||||
Retirement
of treasury stock | ( i 6.1 | ) | — | ( i 85.8 | ) | ( i 56.9 | ) | — | i 6.1 | i 142.7 | i — | — | i — | |||||||||||||||||||||||||
Balances
at June 30, 2019 | i 127.9 | $ | i 1.3 | $ | i — | $ | i 2,305.8 | $ | ( i 127.4 | ) | ( i 0.1 | ) | $ | ( i 0.9 | ) | $ | i 2,178.8 | $ | i 350.8 | $ | i 2,529.6 | |||||||||||||||||
Net
income | — | — | — | i 49.0 | — | — | — | i 49.0 | ( i 1.3 | ) | i 47.7 | |||||||||||||||||||||||||||
Other
comprehensive (loss) income | — | — | — | — | ( i 3.1 | ) | — | — | ( i 3.1 | ) | i 0.4 | ( i 2.7 | ) | |||||||||||||||||||||||||
Cash
dividends declared on common stock ($0.17 per common share) | — | — | — | ( i 21.3 | ) | — | — | — | ( i 21.3 | ) | — | ( i 21.3 | ) | |||||||||||||||||||||||||
Stock-based
compensation expense | — | — | i 8.4 | — | — | — | — | i 8.4 | — | i 8.4 | ||||||||||||||||||||||||||||
Shares
repurchased | — | — | ( i 8.6 | ) | i 8.6 | — | ( i 5.2 | ) | ( i 100.9 | ) | ( i 100.9 | ) | — | ( i 100.9 | ) | |||||||||||||||||||||||
Other
restricted share activity | i — | — | i 0.2 | — | — | i — | ( i 0.5 | ) | ( i 0.3 | ) | — | ( i 0.3 | ) | |||||||||||||||||||||||||
Distributions
to noncontrolling interest | — | — | — | — | — | — | — | i — | ( i 1.2 | ) | ( i 1.2 | ) | ||||||||||||||||||||||||||
Balances
at September 30, 2019 | i 127.9 | $ | i 1.3 | $ | i — | $ | i 2,342.1 | $ | ( i 130.5 | ) | ( i 5.3 | ) | $ | ( i 102.3 | ) | $ | i 2,110.6 | $ | i 348.7 | $ | i 2,459.3 |
Common Stock | Capital in Excess
of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Trinity Stockholders’ Equity | Noncontrolling Interest | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | $0.01
Par Value | Shares | Amount | |||||||||||||||||||||||||||||||||||
(in millions, except par value and per common share amounts) | ||||||||||||||||||||||||||||||||||||||
Balances
at | i 150.9 | $ | i 1.6 | $ | i 482.5 | $ | i 4,123.4 | $ | ( i 104.8 | ) | ( i 0.1 | ) | $ | ( i 1.6 | ) | $ | i 4,501.1 | $ | i 356.9 | $ | i 4,858.0 | |||||||||||||||||
Net
income | — | — | — | i 40.2 | — | — | — | i 40.2 | i 1.4 | i 41.6 | ||||||||||||||||||||||||||||
Other
comprehensive income | — | — | — | — | i 1.5 | — | — | i 1.5 | i 0.4 | i 1.9 | ||||||||||||||||||||||||||||
Cash
dividends declared on common stock ($0.13 per common share) | — | — | — | ( i 19.4 | ) | — | — | — | ( i 19.4 | ) | — | ( i 19.4 | ) | |||||||||||||||||||||||||
Stock-based
compensation expense | — | — | i 6.2 | — | — | — | — | i 6.2 | — | i 6.2 | ||||||||||||||||||||||||||||
Shares
repurchased | — | — | — | — | — | ( i 1.5 | ) | ( i 50.0 | ) | ( i 50.0 | ) | — | ( i 50.0 | ) | ||||||||||||||||||||||||
Stock
options exercised | — | — | i 0.1 | — | — | — | — | i 0.1 | — | i 0.1 | ||||||||||||||||||||||||||||
Other
restricted share activity | — | — | i 3.9 | — | — | ( i 0.1 | ) | ( i 1.9 | ) | i 2.0 | — | i 2.0 | ||||||||||||||||||||||||||
Distributions
to noncontrolling interest | — | — | — | — | — | — | — | i — | ( i 5.8 | ) | ( i 5.8 | ) | ||||||||||||||||||||||||||
Cumulative
effect of adopting new accounting standard | — | — | — | i 18.7 | ( i 18.7 | ) | — | — | i — | — | i — | |||||||||||||||||||||||||||
Balances
at | i 150.9 | $ | i 1.6 | $ | i 492.7 | $ | i 4,162.9 | $ | ( i 122.0 | ) | ( i 1.7 | ) | $ | ( i 53.5 | ) | $ | i 4,481.7 | $ | i 352.9 | $ | i 4,834.6 | |||||||||||||||||
Net
income | — | — | — | i 64.1 | — | — | — | i 64.1 | i 1.4 | i 65.5 | ||||||||||||||||||||||||||||
Other
comprehensive income | — | — | — | — | ( i 0.9 | ) | — | — | ( i 0.9 | ) | i 0.4 | ( i 0.5 | ) | |||||||||||||||||||||||||
Cash
dividends declared on common stock ($0.13 per common share) | — | — | — | ( i 19.6 | ) | — | — | — | ( i 19.6 | ) | — | ( i 19.6 | ) | |||||||||||||||||||||||||
Stock-based
compensation expense | — | — | i 8.0 | — | — | — | — | i 8.0 | — | i 8.0 | ||||||||||||||||||||||||||||
Shares
repurchased | — | — | — | — | — | ( i 1.5 | ) | ( i 50.1 | ) | ( i 50.1 | ) | — | ( i 50.1 | ) | ||||||||||||||||||||||||
Other
restricted share activity | i 0.2 | — | i 4.2 | — | — | ( i 0.3 | ) | ( i 12.8 | ) | ( i 8.6 | ) | — | ( i 8.6 | ) | ||||||||||||||||||||||||
Distributions
to noncontrolling interest | — | — | — | — | — | — | — | i — | ( i 4.5 | ) | ( i 4.5 | ) | ||||||||||||||||||||||||||
Retirement
of treasury stock | ( i 3.4 | ) | — | ( i 114.8 | ) | — | — | i 3.4 | i 114.8 | i — | — | i — | ||||||||||||||||||||||||||
Redemption
of convertible subordinated notes | — | — | ( i 152.9 | ) | — | — | — | — | ( i 152.9 | ) | — | ( i 152.9 | ) | |||||||||||||||||||||||||
Other | — | ( i 0.1 | ) | — | — | — | — | — | ( i 0.1 | ) | — | ( i 0.1 | ) | |||||||||||||||||||||||||
Balances
at | i 147.7 | $ | i 1.5 | $ | i 237.2 | $ | i 4,207.4 | $ | ( i 122.9 | ) | ( i 0.1 | ) | $ | ( i 1.6 | ) | $ | i 4,321.6 | $ | i 350.2 | $ | i 4,671.8 | |||||||||||||||||
Net
income | — | — | — | i 27.7 | — | — | — | i 27.7 | i 0.6 | i 28.3 | ||||||||||||||||||||||||||||
Other
comprehensive income | — | — | — | — | i 1.8 | — | — | i 1.8 | i 0.3 | i 2.1 | ||||||||||||||||||||||||||||
Cash
dividends declared on common stock ($0.13 per common share) | — | — | — | ( i 19.0 | ) | — | — | — | ( i 19.0 | ) | — | ( i 19.0 | ) | |||||||||||||||||||||||||
Stock-based
compensation expense | — | — | i 7.6 | — | — | — | — | i 7.6 | — | i 7.6 | ||||||||||||||||||||||||||||
Shares
repurchased | — | — | — | — | — | ( i 1.4 | ) | ( i 50.0 | ) | ( i 50.0 | ) | — | ( i 50.0 | ) | ||||||||||||||||||||||||
Other
restricted share activity | — | — | i 5.4 | — | — | i — | ( i 2.8 | ) | i 2.6 | — | i 2.6 | |||||||||||||||||||||||||||
Balances
at | i 147.7 | $ | i 1.5 | $ | i 250.2 | $ | i 4,216.1 | $ | ( i 121.1 | ) | ( i 1.5 | ) | $ | ( i 54.4 | ) | $ | i 4,292.3 | $ | i 351.1 | $ | i 4,643.4 |
Unsatisfied performance obligations at September 30, 2019 | ||||||
Total Amount | Percent expected to be delivered in 2019 | |||||
(in
millions) | ||||||
Rail Products Group: | ||||||
Products: | ||||||
External Customers | $ | i 1,628.3 | ||||
Leasing
Group | i 817.4 | |||||
$ | i 2,445.7 | i 33 | % | |||
Maintenance
Services | $ | i 44.9 | i 49 | % | ||
Railcar
Leasing and Management Services Group | $ | i 90.0 | i 5 | % |
Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2019 | ||||||
Consolidated Statement of Operations | |||||||
Operating
lease expense | $ | i 4.0 | $ | i 13.3 | |||
Short-term
lease expense | $ | i 0.9 | $ | i 3.5 | |||
Consolidated Balance Sheet | |||||||
Right-of-use assets (1) | $ | i 45.3 | |||||
Lease
liabilities (2) | $ | i 46.0 | |||||
Weighted
average remaining lease term | i 4.9 years | ||||||
Weighted average discount rate | i 4.1 | % | |||||
Nine
Months Ended September 30, 2019 | |||||||
Consolidated Statement of Cash Flows | |||||||
Cash flows from operating activities | $ | i 13.3 | |||||
Right-of-use
assets recognized in exchange for new lease liabilites | $ | i 8.4 |
Leasing
Group | Non-Leasing Group | Total | |||||||||
Remaining three months of 2019 | $ | i 3.2 | $ | i 0.9 | $ | i 4.1 | |||||
2020 | i 9.5 | i 3.1 | i 12.6 | ||||||||
2021 | i 8.2 | i 2.1 | i 10.3 | ||||||||
2022 | i 7.5 | i 1.8 | i 9.3 | ||||||||
2023 | i 5.5 | i 1.5 | i 7.0 | ||||||||
Thereafter | i 3.3 | i 3.3 | i 6.6 | ||||||||
Total
operating lease payments | $ | i 37.2 | $ | i 12.7 | $ | i 49.9 | |||||
Less:
Present value adjustment | ( i 3.9 | ) | |||||||||
Total operating
lease liabilities | $ | i 46.0 |
Three Months Ended September
30, 2019 | Nine Months Ended September 30, 2019 | ||||||
Operating lease revenues | $ | i 169.5 | $ | i 506.9 | |||
Variable
operating lease revenues | i 12.5 | i 36.6 | |||||
Sales-type
lease revenues | i 26.3 | i 60.5 | |||||
Interest
income on sales-type lease receivables | i 0.6 | i 0.9 | |||||
Profit
recognized at sales-type lease commencement | i 3.7 | i 7.8 |
Remaining three months of 2019 | $ | i 4.6 | |
2020 | i 15.7 | ||
2021 | i 45.9 | ||
2022 | i — | ||
2023 | i — | ||
Thereafter | i — | ||
Total | $ | i 66.2 | |
Less:
Unearned interest income | ( i 7.8 | ) | |
Net investment in sales-type leases (1) | $ | i 58.4 |
Remaining three months of 2019 | $ | i 149.4 | |
2020 | i 521.3 | ||
2021 | i 413.0 | ||
2022 | i 314.8 | ||
2023 | i 217.1 | ||
Thereafter | i 388.2 | ||
Total | $ | i 2,003.8 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Beginning balance | $ | i 8.3 | $ | i 10.5 | $ | i 7.4 | $ | i 10.1 | |||||||
Warranty
costs incurred | ( i 1.7 | ) | ( i 1.1 | ) | ( i 3.2 | ) | ( i 2.9 | ) | |||||||
Warranty
originations and revisions | i 3.2 | ( i 2.1 | ) | i 5.8 | ( i 0.2 | ) | |||||||||
Warranty
expirations | i — | ( i 0.1 | ) | ( i 0.2 | ) | i 0.2 | |||||||||
Ending
balance | $ | i 9.8 | $ | i 7.2 | $ | i 9.8 | $ | i 7.2 |
Three
Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(in
millions) | ||||||||||||||||
Revenues | $ | i — | $ | i 334.8 | $ | i — | $ | i 966.0 | ||||||||
Cost
of revenues | i — | i 295.6 | i 0.1 | i 786.5 | ||||||||||||
Selling,
engineering, and administrative expenses | i 0.5 | i 35.6 | i 2.8 | i 102.0 | ||||||||||||
Other
(income) expense | i — | ( i 0.2 | ) | i — | i 1.9 | |||||||||||
Income
(loss) from discontinued operations before income taxes | ( i 0.5 | ) | i 3.8 | ( i 2.9 | ) | i 75.6 | ||||||||||
Provision
(benefit) for income taxes | ( i 0.1 | ) | i 4.0 | ( i 0.6 | ) | i 21.2 | ||||||||||
Income
(loss) from discontinued operations, net of income taxes | $ | ( i 0.4 | ) | $ | ( i 0.2 | ) | $ | ( i 2.3 | ) | $ | i 54.4 |
Included in accompanying balance sheet at September 30, 2019 | ||||||||||||||||||
Notional Amount | Interest Rate (1) | Asset/(Liability) | AOCL – loss/ (income) | Noncontrolling Interest | ||||||||||||||
(in
millions, except %) | ||||||||||||||||||
Expired hedges: | ||||||||||||||||||
2006 secured railcar equipment notes | $ | i 200.0 | i 4.87 | % | $ | i — | $ | ( i 0.2 | ) | $ | i — | |||||||
2018
secured railcar equipment notes | $ | i 249.3 | i 4.41 | % | $ | i — | $ | i 1.1 | $ | i — | ||||||||
TRIP
Holdings warehouse loan | $ | i 788.5 | i 3.60 | % | $ | i — | $ | i 2.4 | $ | i 3.3 | ||||||||
TRIP
Master Funding secured railcar equipment notes | $ | i 34.8 | i 2.62 | % | $ | i — | $ | i 0.2 | $ | i 0.2 | ||||||||
2017
promissory notes - interest rate cap | $ | i 169.3 | i 3.00 | % | $ | i — | $ | ( i 0.7 | ) | $ | i — | |||||||
Open
hedge: | ||||||||||||||||||
2017 promissory notes - interest rate swap | $ | i 578.6 | i 2.68 | % | $ | ( i 34.1 | ) | $ | i 34.0 | $ | i — |
Effect
on interest expense-increase/(decrease) | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Expected effect during next twelve months(1) | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||
(in
millions) | |||||||||||||||||||
Expired hedges: | |||||||||||||||||||
2006 secured railcar equipment notes | $ | i — | $ | i — | $ | ( i 0.1 | ) | $ | ( i 0.1 | ) | $ | ( i 0.1 | ) | ||||||
2018
secured railcar equipment notes | $ | i 0.1 | $ | i — | $ | i 0.2 | $ | i — | $ | i 0.2 | |||||||||
TRIP
Holdings warehouse loan | $ | i 0.5 | $ | i 0.5 | $ | i 1.5 | $ | i 1.7 | $ | i 2.0 | |||||||||
TRIP
Master Funding secured railcar equipment notes | $ | i 0.1 | $ | i 0.1 | $ | i 0.2 | $ | i 0.2 | $ | i 0.2 | |||||||||
2017
promissory notes - interest rate cap | $ | i — | $ | i — | $ | ( i 0.1 | ) | $ | i — | $ | ( i 0.1 | ) | |||||||
Open
hedge: | |||||||||||||||||||
2017 promissory notes - interest rate swap | $ | i 0.6 | $ | i — | $ | i 1.9 | $ | i — | $ | i 2.6 |
Level
1 | |||||||
(in millions) | |||||||
Assets: | |||||||
Cash equivalents | $ | i 18.8 | $ | i 124.9 | |||
Restricted
cash | i 117.5 | i 171.6 | |||||
Total
assets | $ | i 136.3 | $ | i 296.5 |
Level 2 | |||||||
(in
millions) | |||||||
Liabilities: | |||||||
Interest rate hedge (1) | $ | i 34.1 | $ | i 12.9 | |||
Total
liabilities | $ | i 34.1 | $ | i 12.9 |
Three
Months Ended September 30, 2019 | |||||||||||||||||||||||||||
Railcar Leasing and Management Services Group | Rail Products Group | All Other | Corporate | Eliminations — Lease Subsidiary | Eliminations
— Other | Consolidated Total | |||||||||||||||||||||
External Revenue | $ | i 326.2 | $ | i 409.0 | $ | i 78.4 | $ | — | $ | — | $ | — | $ | i 813.6 | |||||||||||||
Intersegment
Revenue | i 0.2 | i 314.0 | i 12.0 | — | ( i 314.0 | ) | ( i 12.2 | ) | i — | ||||||||||||||||||
Total
Revenues | $ | i 326.4 | $ | i 723.0 | $ | i 90.4 | $ | i — | $ | ( i 314.0 | ) | $ | ( i 12.2 | ) | $ | i 813.6 | |||||||||||
Operating
Profit (Loss) | $ | i 115.7 | $ | i 65.4 | $ | i 3.9 | $ | ( i 23.9 | ) | $ | ( i 40.7 | ) | $ | ( i 0.1 | ) | $ | i 120.3 |
Three
Months Ended September 30, 2018 | |||||||||||||||||||||||||||
Railcar Leasing and Management Services Group | Rail Products Group | All Other | Corporate | Eliminations — Lease Subsidiary | Eliminations
— Other | Consolidated Total | |||||||||||||||||||||
External Revenue | $ | i 227.2 | $ | i 290.2 | $ | i 89.5 | $ | — | $ | — | $ | — | $ | i 606.9 | |||||||||||||
Intersegment
Revenue | i 0.3 | i 207.4 | i 12.9 | — | ( i 207.4 | ) | ( i 13.2 | ) | i — | ||||||||||||||||||
Total
Revenues | $ | i 227.5 | $ | i 497.6 | $ | i 102.4 | $ | i — | $ | ( i 207.4 | ) | $ | ( i 13.2 | ) | $ | i 606.9 | |||||||||||
Operating
Profit (Loss) | $ | i 92.2 | $ | i 28.0 | $ | i 9.5 | $ | ( i 37.4 | ) | $ | ( i 18.1 | ) | $ | i 1.0 | $ | i 75.2 |
Nine
Months Ended September 30, 2019 | |||||||||||||||||||||||||||
Railcar Leasing and Management Services Group | Rail Products Group | All Other | Corporate | Eliminations — Lease Subsidiary | Eliminations
— Other | Consolidated Total | |||||||||||||||||||||
External Revenue | $ | i 803.3 | $ | i 1,125.9 | $ | i 225.2 | $ | — | $ | — | $ | — | $ | i 2,154.4 | |||||||||||||
Intersegment
Revenue | i 0.6 | i 913.0 | i 40.1 | — | ( i 913.0 | ) | ( i 40.7 | ) | i — | ||||||||||||||||||
Total
Revenues | $ | i 803.9 | $ | i 2,038.9 | $ | i 265.3 | $ | i — | $ | ( i 913.0 | ) | $ | ( i 40.7 | ) | $ | i 2,154.4 | |||||||||||
Operating
Profit (Loss) | $ | i 306.3 | $ | i 184.0 | $ | i 16.7 | $ | ( i 78.1 | ) | $ | ( i 109.5 | ) | $ | ( i 0.3 | ) | $ | i 319.1 |
Nine
Months Ended September 30, 2018 | |||||||||||||||||||||||||||
Railcar Leasing and Management Services Group | Rail Products Group | All Other | Corporate | Eliminations — Lease Subsidiary | Eliminations
— Other | Consolidated Total | |||||||||||||||||||||
External Revenue | $ | i 614.7 | $ | i 919.9 | $ | i 239.5 | $ | — | $ | — | $ | — | $ | i 1,774.1 | |||||||||||||
Intersegment
Revenue | i 0.8 | i 732.0 | i 32.4 | — | ( i 732.0 | ) | ( i 33.2 | ) | i — | ||||||||||||||||||
Total
Revenues | $ | i 615.5 | $ | i 1,651.9 | $ | i 271.9 | $ | i — | $ | ( i 732.0 | ) | $ | ( i 33.2 | ) | $ | i 1,774.1 | |||||||||||
Operating
Profit (Loss) | $ | i 255.1 | $ | i 128.0 | $ | i 27.7 | $ | ( i 115.0 | ) | $ | ( i 71.3 | ) | $ | i 0.8 | $ | i 225.3 |
Leasing Group | |||||||||||||||
Wholly- Owned | Partially-Owned Subsidiaries | Manufacturing/ Corporate | Total | ||||||||||||
(in
millions) | |||||||||||||||
Cash and cash equivalents | $ | i 4.0 | $ | i — | $ | i 93.6 | $ | i 97.6 | |||||||
Property,
plant, and equipment, net | $ | i 5,597.0 | $ | i 1,794.5 | $ | i 396.3 | $ | i 7,787.8 | |||||||
Net
deferred profit on railcars sold to the Leasing Group | ( i 871.1 | ) | |||||||||||||
Consolidated
property, plant, and equipment, net | $ | i 6,916.7 | |||||||||||||
Restricted
cash | $ | i 86.5 | $ | i 30.9 | $ | i 0.1 | $ | i 117.5 | |||||||
Debt: | |||||||||||||||
Recourse,
net of unamortized discount of $-, $-, $0.2, and $0.2 | $ | i — | $ | i — | $ | i 474.8 | $ | i 474.8 | |||||||
Less:
unamortized debt issuance costs | i — | i — | ( i 2.1 | ) | ( i 2.1 | ) | |||||||||
i — | i — | i 472.7 | i 472.7 | ||||||||||||
Non-recourse,
net of unamortized discount of $2.5, $-, $-, and $2.5 | i 2,944.7 | i 1,300.6 | i — | i 4,245.3 | |||||||||||
Less:
unamortized debt issuance costs | ( i 21.5 | ) | ( i 11.3 | ) | i — | ( i 32.8 | ) | ||||||||
i 2,923.2 | i 1,289.3 | i — | i 4,212.5 | ||||||||||||
Total
debt | $ | i 2,923.2 | $ | i 1,289.3 | $ | i 472.7 | $ | i 4,685.2 | |||||||
Net
deferred tax liabilities | $ | i 833.5 | $ | i 1.0 | $ | ( i 64.8 | ) | $ | i 769.7 |
Leasing Group | |||||||||||||||
Wholly- Owned | Partially-Owned Subsidiaries | Manufacturing/ Corporate | Total | ||||||||||||
(in
millions) | |||||||||||||||
Cash and cash equivalents | $ | i 6.0 | $ | i — | $ | i 173.2 | $ | i 179.2 | |||||||
Property,
plant, and equipment, net | $ | i 4,976.5 | $ | i 1,814.7 | $ | i 370.9 | $ | i 7,162.1 | |||||||
Net
deferred profit on railcars sold to the Leasing Group | ( i 827.7 | ) | |||||||||||||
Consolidated
property, plant, and equipment, net | $ | i 6,334.4 | |||||||||||||
Restricted
cash | $ | i 134.9 | $ | i 36.6 | $ | i 0.1 | $ | i 171.6 | |||||||
Debt: | |||||||||||||||
Recourse,
net of unamortized discount of $-, $-, $0.3, and $0.3 | $ | i — | $ | i — | $ | i 399.7 | $ | i 399.7 | |||||||
Less:
uamortized debt issuance costs | i — | i — | ( i 2.3 | ) | ( i 2.3 | ) | |||||||||
i — | i — | i 397.4 | i 397.4 | ||||||||||||
Non-recourse,
net of unamortized discount of $2.7, $-, $-, and $2.7 | i 2,336.3 | i 1,327.9 | i — | i 3,664.2 | |||||||||||
Less:
unamortized debt issuance costs | ( i 19.7 | ) | ( i 12.7 | ) | i — | ( i 32.4 | ) | ||||||||
i 2,316.6 | i 1,315.2 | i — | i 3,631.8 | ||||||||||||
Total
debt | $ | i 2,316.6 | $ | i 1,315.2 | $ | i 397.4 | $ | i 4,029.2 | |||||||
Net
deferred tax liabilities | $ | i 797.6 | $ | i 1.0 | $ | ( i 67.0 | ) | $ | i 731.6 |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | Percent | 2019 | 2018 | Percent | ||||||||||||||||
($
in millions) | Change | ($ in millions) | Change | ||||||||||||||||||
Revenues: | |||||||||||||||||||||
Leasing
and management | $ | i 190.1 | $ | i 175.9 | i 8.1 | % | $ | i 566.6 | $ | i 534.7 | i 6.0 | % | |||||||||
Sales
of railcars owned one year or less at the time of sale (1) | i 136.3 | i 51.6 | * | i 237.3 | i 80.8 | * | |||||||||||||||
Total
revenues | $ | i 326.4 | $ | i 227.5 | i 43.5 | $ | i 803.9 | $ | i 615.5 | i 30.6 | |||||||||||
Operating
profit(2): | |||||||||||||||||||||
Leasing
and management | $ | i 79.8 | $ | i 69.7 | i 14.5 | $ | i 234.6 | $ | i 216.6 | i 8.3 | |||||||||||
Railcar
sales: | |||||||||||||||||||||
Railcars
owned one year or less at the time of sale | i 17.8 | i 13.1 | * | i 27.0 | i 17.5 | * | |||||||||||||||
Railcars
owned more than one year at the time of sale | i 18.1 | i 9.4 | * | i 44.7 | i 21.0 | * | |||||||||||||||
Total
operating profit | $ | i 115.7 | $ | i 92.2 | i 25.5 | $ | i 306.3 | $ | i 255.1 | i 20.1 | |||||||||||
Total
operating profit margin | i 35.4 | % | i 40.5 | % | i 38.1 | % | i 41.4 | % | |||||||||||||
Leasing
and management operating profit margin | i 42.0 | % | i 39.6 | % | i 41.4 | % | i 40.5 | % | |||||||||||||
Selected
expense information: | |||||||||||||||||||||
Depreciation | $ | i 59.4 | $ | i 48.8 | i 21.7 | % | $ | i 171.6 | $ | i 140.9 | i 21.8 | % | |||||||||
Maintenance
and compliance | $ | i 24.9 | $ | i 24.1 | i 3.3 | % | $ | i 79.2 | $ | i 75.5 | i 4.9 | % | |||||||||
Rent | $ | i 3.8 | $ | i 9.7 | ( i 60.8 | )% | $ | i 13.6 | $ | i 29.7 | ( i 54.2 | )% | |||||||||
Selling,
engineering, and administrative expenses | $ | i 10.7 | $ | i 11.9 | ( i 10.1 | )% | $ | i 36.2 | $ | i 36.7 | ( i 1.4 | )% | |||||||||
Interest
| $ | i 50.0 | $ | i 37.4 | i 33.7 | % | $ | i 146.4 | $ | i 101.2 | i 44.7 | % |
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(in
millions) | |||||||
Railcars owned one year or less at the time of sale (1) | $ | i 237.3 | $ | i 80.8 | |||
Railcars
owned more than one year at the time of sale | i 175.0 | i 123.4 | |||||
$ | i 412.3 | $ | i 204.2 |
Remaining
three months of 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | ||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||
Future contractual minimum rental revenue | $ | i 146.8 | $ | i 513.4 | $ | i 406.9 | $ | i 310.3 | $ | i 214.9 | $ | i 387.4 | $ | i 1,979.7 |
Remaining
three months of 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | ||||||||||||||||||||||
(in
millions) | ||||||||||||||||||||||||||||
Future operating lease obligations | $ | i 3.2 | $ | i 9.5 | $ | i 8.2 | $ | i 7.5 | $ | i 5.5 | $ | i 3.3 | $ | i 37.2 | ||||||||||||||
Future
contractual minimum rental revenues | $ | i 2.6 | $ | i 7.9 | $ | i 6.1 | $ | i 4.5 | $ | i 2.2 | $ | i 0.8 | $ | i 24.1 |
(in millions) | |||||||
Manufacturing/Corporate: | |||||||
Land | $ | i 25.5 | $ | i 24.2 | |||
Buildings
and improvements | i 389.0 | i 385.5 | |||||
Machinery
and other | i 548.9 | i 537.2 | |||||
Construction
in progress | i 50.4 | i 16.3 | |||||
i 1,013.8 | i 963.2 | ||||||
Less
accumulated depreciation | ( i 617.5 | ) | ( i 592.3 | ) | |||
i 396.3 | i 370.9 | ||||||
Leasing: | |||||||
Wholly-owned
subsidiaries: | |||||||
Machinery and other | i 13.8 | i 13.5 | |||||
Equipment
on lease | i 6,677.9 | i 5,934.8 | |||||
i 6,691.7 | i 5,948.3 | ||||||
Less
accumulated depreciation | ( i 1,094.7 | ) | ( i 971.8 | ) | |||
i 5,597.0 | i 4,976.5 | ||||||
Partially-owned
subsidiaries: | |||||||
Equipment on lease | i 2,401.0 | i 2,371.9 | |||||
Less
accumulated depreciation | ( i 606.5 | ) | ( i 557.2 | ) | |||
i 1,794.5 | i 1,814.7 | ||||||
Deferred
profit on railcars sold to the Leasing Group | ( i 1,094.7 | ) | ( i 1,030.0 | ) | |||
Less
accumulated amortization | i 223.6 | i 202.3 | |||||
( i 871.1 | ) | ( i 827.7 | ) | ||||
$ | i 6,916.7 | $ | i 6,334.4 |
Carrying
Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||
(in millions) | |||||||||||||||
Corporate – Recourse: | |||||||||||||||
Revolving
credit facility | $ | i 75.0 | $ | i 75.0 | $ | i — | $ | i — | |||||||
Senior
notes, net of unamortized discount of $0.2 and $0.3 | i 399.8 | i 407.1 | i 399.7 | i 343.7 | |||||||||||
i 474.8 | i 482.1 | i 399.7 | i 343.7 | ||||||||||||
Less:
unamortized debt issuance costs | ( i 2.1 | ) | ( i 2.3 | ) | |||||||||||
Total
recourse debt | i 472.7 | i 397.4 | |||||||||||||
Leasing
– Non-recourse: | |||||||||||||||
Wholly-owned subsidiaries: | |||||||||||||||
2006
secured railcar equipment notes | i 114.7 | i 120.0 | i 133.4 | i 138.0 | |||||||||||
2009
secured railcar equipment notes | i 150.7 | i 174.6 | i 159.7 | i 174.0 | |||||||||||
2010
secured railcar equipment notes | i 251.2 | i 270.6 | i 257.0 | i 264.0 | |||||||||||
2017
promissory notes | i 635.4 | i 635.4 | i 660.2 | i 660.2 | |||||||||||
2018
secured railcar equipment notes, net of unamortized discount of $0.2 and $0.2 | i 457.3 | i 478.3 | i 472.2 | i 475.2 | |||||||||||
TRIHC
2018 secured railcar equipment notes, net of unamortized discount of $2.1 and $2.5 | i 268.3 | i 275.2 | i 279.0 | i 278.1 | |||||||||||
2019
secured railcar equipment notes, net of unamortized discount of $0.2 and $- | i 521.3 | i 536.0 | i — | i — | |||||||||||
TILC
warehouse facility | i 545.8 | i 545.8 | i 374.8 | i 374.8 | |||||||||||
i 2,944.7 | i 3,035.9 | i 2,336.3 | i 2,364.3 | ||||||||||||
Less:
unamortized debt issuance costs | ( i 21.5 | ) | ( i 19.7 | ) | |||||||||||
i 2,923.2 | i 2,316.6 | ||||||||||||||
Partially-owned
subsidiaries: | |||||||||||||||
TRL 2012 secured railcar equipment notes | i 376.8 | i 387.4 | i 386.2 | i 370.9 | |||||||||||
TRIP
Master Funding secured railcar equipment notes | i 923.8 | i 1,005.6 | i 941.7 | i 963.0 | |||||||||||
i 1,300.6 | i 1,393.0 | i 1,327.9 | i 1,333.9 | ||||||||||||
Less:
unamortized debt issuance costs | ( i 11.3 | ) | ( i 12.7 | ) | |||||||||||
i 1,289.3 | i 1,315.2 | ||||||||||||||
Total
non–recourse debt | i 4,212.5 | i 3,631.8 | |||||||||||||
Total
debt | $ | i 4,685.2 | $ | i 4,911.0 | $ | i 4,029.2 | $ | i 4,041.9 |
Remaining
three months of 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Recourse: | |||||||||||||||||||||||
Corporate | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 75.0 | $ | i 400.0 | |||||||||||
Non-recourse
– leasing (Note 6): | |||||||||||||||||||||||
2006 secured railcar equipment notes | i 10.0 | i 29.7 | i 29.1 | i 29.8 | i 16.1 | i — | |||||||||||||||||
2009
secured railcar equipment notes | i 2.5 | i 6.6 | i 13.4 | i 14.0 | i 11.8 | i 102.4 | |||||||||||||||||
2010
secured railcar equipment notes | i 2.6 | i 14.1 | i 20.0 | i 20.9 | i 22.5 | i 171.1 | |||||||||||||||||
2017
promissory notes | i 8.3 | i 33.1 | i 33.1 | i 33.2 | i 33.2 | i 494.5 | |||||||||||||||||
2018
secured railcar equipment notes | i 5.0 | i 20.0 | i 20.0 | i 20.0 | i 20.0 | i 372.5 | |||||||||||||||||
TRIHC
2018 secured railcar equipment notes | i 3.2 | i 10.9 | i 11.9 | i 9.3 | i 11.6 | i 223.5 | |||||||||||||||||
2019
secured railcar equipment notes | i 5.3 | i 20.7 | i 22.5 | i 21.5 | i 19.6 | i 431.9 | |||||||||||||||||
TILC
warehouse facility | i 4.3 | i 17.0 | i 17.0 | i 2.9 | i — | i — | |||||||||||||||||
Facility
termination payments - TILC warehouse facility | i — | i — | i — | i 504.6 | i — | i — | |||||||||||||||||
TRL
2012 secured railcar equipment notes | i 4.7 | i 19.3 | i 19.9 | i 19.6 | i 28.5 | i 284.8 | |||||||||||||||||
TRIP
Master Funding secured railcar equipment notes | i 5.9 | i 32.9 | i 40.4 | i 41.8 | i 37.0 | i 765.8 | |||||||||||||||||
Total
principal payments | $ | i 51.8 | $ | i 204.3 | $ | i 227.3 | $ | i 717.6 | $ | i 275.3 | $ | i 3,246.5 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Expense Components | |||||||||||||||
Service cost | $ | i — | $ | i — | $ | i 0.1 | $ | i 0.1 | |||||||
Interest | i 5.0 | i 4.6 | i 14.8 | i 13.7 | |||||||||||
Expected
return on plan assets | ( i 5.8 | ) | ( i 6.9 | ) | ( i 17.3 | ) | ( i 20.6 | ) | |||||||
Amortization
of actuarial loss | i 1.2 | i 1.3 | i 3.4 | i 3.6 | |||||||||||
Net
periodic benefit cost | i 0.4 | ( i 1.0 | ) | i 1.0 | ( i 3.2 | ) | |||||||||
Profit
sharing | i 3.1 | i 2.6 | i 8.3 | i 7.6 | |||||||||||
Net
expense | $ | i 3.5 | $ | i 1.6 | $ | i 9.3 | $ | i 4.4 |
Currency translation adjustments | Unrealized gain/(loss) on derivative
financial instruments | Net actuarial gains/(losses) of defined benefit plans | Accumulated Other Comprehensive Loss | ||||||||||||
(in millions) | |||||||||||||||
Balances at December 31, 2018 | $ | ( i 1.3 | ) | $ | ( i 8.3 | ) | $ | ( i 107.2 | ) | $ | ( i 116.8 | ) | |||
Other
comprehensive loss, net of tax, before reclassifications | i — | ( i 18.1 | ) | i — | ( i 18.1 | ) | |||||||||
Amounts
reclassified from accumulated other comprehensive loss, net of tax benefit of $-, $0.7, $0.9, and $1.6 | i — | i 2.9 | i 2.5 | i 5.4 | |||||||||||
Less:
noncontrolling interest | — | ( i 1.0 | ) | — | ( i 1.0 | ) | |||||||||
Other
comprehensive income (loss) | i — | ( i 16.2 | ) | i 2.5 | ( i 13.7 | ) | |||||||||
Balances
at September 30, 2019 | $ | ( i 1.3 | ) | $ | ( i 24.5 | ) | $ | ( i 104.7 | ) | $ | ( i 130.5 | ) |
Number
of Shares Granted | Weighted Average Grant-Date Fair Value per Award | |||||
Restricted stock units | i 956,235 | $ | i 22.20 | |||
Restricted
stock awards | i 20,321 | $ | i 22.27 | |||
Performance
units | i 476,394 | $ | i 22.22 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions, except per share amounts) | |||||||||||||||
Income from continuing operations | $ | i 48.1 | $ | i 28.5 | $ | i 116.9 | $ | i 81.0 | |||||||
Less:
Net (income) loss attributable to noncontrolling interest | i 1.3 | ( i 0.6 | ) | i 1.4 | ( i 3.4 | ) | |||||||||
Unvested
restricted share participation — continuing operations | ( i 0.6 | ) | ( i 0.6 | ) | ( i 1.6 | ) | ( i 1.9 | ) | |||||||
Net
income from continuing operations attributable to Trinity Industries, Inc. | i 48.8 | i 27.3 | i 116.7 | i 75.7 | |||||||||||
Net
income (loss) from discontinued operations, net of income taxes | ( i 0.4 | ) | ( i 0.2 | ) | ( i 2.3 | ) | i 54.4 | ||||||||
Unvested
restricted share participation — discontinued operations | i — | i — | i — | ( i 0.5 | ) | ||||||||||
Net
income (loss) from discontinued operations attributable to Trinity Industries, Inc. | ( i 0.4 | ) | ( i 0.2 | ) | ( i 2.3 | ) | i 53.9 | ||||||||
Net
income attributable to Trinity Industries, Inc., including the effect of unvested restricted share participation | $ | i 48.4 | $ | i 27.1 | $ | i 114.4 | $ | i 129.6 | |||||||
Basic
weighted average shares outstanding | i 124.7 | i 145.0 | i 127.6 | i 146.1 | |||||||||||
Effect
of dilutive securities: | |||||||||||||||
Nonparticipating unvested RSUs and RSAs | i 1.3 | i 0.8 | i 1.6 | i 0.9 | |||||||||||
Convertible
subordinated notes | i — | i — | i — | i 1.8 | |||||||||||
Diluted
weighted average shares outstanding | i 126.0 | i 145.8 | i 129.2 | i 148.8 | |||||||||||
Basic
earnings per common share: | |||||||||||||||
Income from continuing operations | $ | i 0.39 | $ | i 0.19 | $ | i 0.91 | $ | i 0.52 | |||||||
Income
(loss) from discontinued operations | i — | i — | ( i 0.02 | ) | i 0.37 | ||||||||||
Basic
net income attributable to Trinity Industries, Inc. | $ | i 0.39 | $ | i 0.19 | $ | i 0.89 | $ | i 0.89 | |||||||
Diluted
earnings per common share: | |||||||||||||||
Income from continuing operations | $ | i 0.39 | $ | i 0.19 | $ | i 0.90 | $ | i 0.51 | |||||||
Income
(loss) from discontinued operations | i — | i — | ( i 0.02 | ) | i 0.36 | ||||||||||
Diluted
net income attributable to Trinity Industries, Inc. | $ | i 0.39 | $ | i 0.19 | $ | i 0.88 | $ | i 0.87 |
Condensed Consolidating Statement
of Operations and Comprehensive Income | |||||||||||||||||||
Three Months Ended September 30, 2019 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in
millions) | |||||||||||||||||||
Revenues | $ | i — | $ | i 566.3 | $ | i 311.3 | $ | ( i 64.0 | ) | $ | i 813.6 | ||||||||
Cost
of revenues | i 1.1 | i 466.8 | i 254.7 | ( i 73.5 | ) | i 649.1 | |||||||||||||
Selling,
engineering, and administrative expenses | i 24.0 | i 24.2 | i 13.9 | i — | i 62.1 | ||||||||||||||
Gains
on dispositions of property | ( i 0.2 | ) | i 11.3 | i 6.8 | i — | i 17.9 | |||||||||||||
i 25.3 | i 479.7 | i 261.8 | ( i 73.5 | ) | i 693.3 | ||||||||||||||
Operating
profit (loss) | ( i 25.3 | ) | i 86.6 | i 49.5 | i 9.5 | i 120.3 | |||||||||||||
Other
(income) expense | ( i 0.6 | ) | i 4.8 | i 50.1 | ( i 0.3 | ) | i 54.0 | ||||||||||||
Equity
in earnings of subsidiaries, net of taxes | i 75.6 | i 6.0 | i 8.1 | ( i 89.7 | ) | i — | |||||||||||||
Income
from continuing operations before income taxes | i 50.9 | i 87.8 | i 7.5 | ( i 79.9 | ) | i 66.3 | |||||||||||||
Provision
(benefit) for income taxes | i 1.4 | i 21.5 | i 1.0 | ( i 5.7 | ) | i 18.2 | |||||||||||||
Income
from continuing operations | i 49.5 | i 66.3 | i 6.5 | ( i 74.2 | ) | i 48.1 | |||||||||||||
Income
(loss) from discontinued operations, net of income taxes | ( i 0.5 | ) | i — | i 0.1 | i — | ( i 0.4 | ) | ||||||||||||
Net
income | i 49.0 | i 66.3 | i 6.6 | ( i 74.2 | ) | i 47.7 | |||||||||||||
Net
loss attributable to noncontrolling interest | i — | i — | i — | ( i 1.3 | ) | ( i 1.3 | ) | ||||||||||||
Net
income attributable to controlling interest | $ | i 49.0 | $ | i 66.3 | $ | i 6.6 | $ | ( i 72.9 | ) | $ | i 49.0 | ||||||||
Net
income | $ | i 49.0 | $ | i 66.3 | $ | i 6.6 | $ | ( i 74.2 | ) | $ | i 47.7 | ||||||||
Other
comprehensive income (loss) | i 0.9 | i — | ( i 3.6 | ) | i — | ( i 2.7 | ) | ||||||||||||
Comprehensive
income | i 49.9 | i 66.3 | i 3.0 | ( i 74.2 | ) | i 45.0 | |||||||||||||
Comprehensive
loss attributable to noncontrolling interest | i — | i — | i — | ( i 0.9 | ) | ( i 0.9 | ) | ||||||||||||
Comprehensive
income attributable to controlling interest | $ | i 49.9 | $ | i 66.3 | $ | i 3.0 | $ | ( i 73.3 | ) | $ | i 45.9 |
Condensed
Consolidating Statement of Operations and Comprehensive Income | |||||||||||||||||||
Three Months Ended September 30, 2018 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in
millions) | |||||||||||||||||||
Revenues | $ | i — | $ | i 449.0 | $ | i 231.5 | $ | ( i 73.6 | ) | $ | i 606.9 | ||||||||
Cost
of revenues | i 1.6 | i 375.2 | i 171.9 | ( i 82.2 | ) | i 466.5 | |||||||||||||
Selling,
engineering, and administrative expenses | i 35.6 | i 28.3 | i 11.7 | i — | i 75.6 | ||||||||||||||
Gains
on dispositions of property | i — | i 8.4 | i 2.0 | i — | i 10.4 | ||||||||||||||
i 37.2 | i 395.1 | i 181.6 | ( i 82.2 | ) | i 531.7 | ||||||||||||||
Operating
profit (loss) | ( i 37.2 | ) | i 53.9 | i 49.9 | i 8.6 | i 75.2 | |||||||||||||
Other
(income) expense | ( i 3.9 | ) | i 8.4 | i 35.5 | i — | i 40.0 | |||||||||||||
Equity
in earnings of subsidiaries, net of taxes | i 63.8 | i 8.0 | i 7.3 | ( i 79.1 | ) | i — | |||||||||||||
Income
before income taxes | i 30.5 | i 53.5 | i 21.7 | ( i 70.5 | ) | i 35.2 | |||||||||||||
Provision
(benefit) for income taxes | ( i 5.3 | ) | i 8.4 | i 2.4 | i 1.2 | i 6.7 | |||||||||||||
Income
from continuing operations | i 35.8 | i 45.1 | i 19.3 | ( i 71.7 | ) | i 28.5 | |||||||||||||
Income
(loss) from discontinued operations, net of income taxes | ( i 8.1 | ) | i — | i 7.9 | i — | ( i 0.2 | ) | ||||||||||||
Net
income | i 27.7 | i 45.1 | i 27.2 | ( i 71.7 | ) | i 28.3 | |||||||||||||
Net
income attributable to noncontrolling interest | i — | i — | i — | i 0.6 | i 0.6 | ||||||||||||||
Net
income attributable to controlling interest | $ | i 27.7 | $ | i 45.1 | $ | i 27.2 | $ | ( i 72.3 | ) | $ | i 27.7 | ||||||||
Net
income | $ | i 27.7 | $ | i 45.1 | $ | i 27.2 | $ | ( i 71.7 | ) | $ | i 28.3 | ||||||||
Other
comprehensive income | i 1.4 | i — | i 0.7 | i — | i 2.1 | ||||||||||||||
Comprehensive
income | i 29.1 | i 45.1 | i 27.9 | ( i 71.7 | ) | i 30.4 | |||||||||||||
Comprehensive
income attributable to noncontrolling interest | i — | i — | i — | i 0.9 | i 0.9 | ||||||||||||||
Comprehensive
income attributable to controlling interest | $ | i 29.1 | $ | i 45.1 | $ | i 27.9 | $ | ( i 72.6 | ) | $ | i 29.5 |
Condensed Consolidating Statement of Operations and Comprehensive Income | |||||||||||||||||||
Nine
Months Ended September 30, 2019 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in
millions) | |||||||||||||||||||
Revenues | $ | i — | $ | i 1,492.7 | $ | i 853.1 | $ | ( i 191.4 | ) | $ | i 2,154.4 | ||||||||
Cost
of revenues | i 2.3 | i 1,246.1 | i 664.3 | ( i 221.7 | ) | i 1,691.0 | |||||||||||||
Selling,
engineering, and administrative expenses | i 71.3 | i 77.6 | i 42.6 | i — | i 191.5 | ||||||||||||||
Gains
on dispositions of property | ( i 0.2 | ) | i 20.4 | i 27.0 | i — | i 47.2 | |||||||||||||
i 73.8 | i 1,303.3 | i 679.9 | ( i 221.7 | ) | i 1,835.3 | ||||||||||||||
Operating
profit (loss) | ( i 73.8 | ) | i 189.4 | i 173.2 | i 30.3 | i 319.1 | |||||||||||||
Other
(income) expense | i — | i 14.6 | i 146.7 | ( i 0.3 | ) | i 161.0 | |||||||||||||
Equity
in earnings of subsidiaries, net of taxes | i 195.4 | i 32.0 | i 19.7 | ( i 247.1 | ) | i — | |||||||||||||
Income
from continuing operations before income taxes | i 121.6 | i 206.8 | i 46.2 | ( i 216.5 | ) | i 158.1 | |||||||||||||
Provision
(benefit) for income taxes | i 3.5 | i 46.9 | i 3.3 | ( i 12.5 | ) | i 41.2 | |||||||||||||
Income
from continuing operations | i 118.1 | i 159.9 | i 42.9 | ( i 204.0 | ) | i 116.9 | |||||||||||||
Loss
from discontinued operations, net of income taxes | ( i 2.1 | ) | i — | ( i 0.2 | ) | i — | ( i 2.3 | ) | |||||||||||
Net
income | i 116.0 | i 159.9 | i 42.7 | ( i 204.0 | ) | i 114.6 | |||||||||||||
Net
loss attributable to noncontrolling interest | i — | i — | i — | ( i 1.4 | ) | ( i 1.4 | ) | ||||||||||||
Net
income attributable to controlling interest | $ | i 116.0 | $ | i 159.9 | $ | i 42.7 | $ | ( i 202.6 | ) | $ | i 116.0 | ||||||||
Net
income | $ | i 116.0 | $ | i 159.9 | $ | i 42.7 | $ | ( i 204.0 | ) | $ | i 114.6 | ||||||||
Other
comprehensive income (loss) | i 2.5 | i — | ( i 15.2 | ) | i — | ( i 12.7 | ) | ||||||||||||
Comprehensive
income | i 118.5 | i 159.9 | i 27.5 | ( i 204.0 | ) | i 101.9 | |||||||||||||
Comprehensive
loss attributable to noncontrolling interest | i — | i — | i — | ( i 0.4 | ) | ( i 0.4 | ) | ||||||||||||
Comprehensive
income attributable to controlling interest | $ | i 118.5 | $ | i 159.9 | $ | i 27.5 | $ | ( i 203.6 | ) | $ | i 102.3 |
Condensed
Consolidating Statement of Operations and Comprehensive Income | |||||||||||||||||||
Nine Months Ended September 30, 2018 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in
millions) | |||||||||||||||||||
Revenues | $ | i — | $ | i 1,288.6 | $ | i 692.4 | $ | ( i 206.9 | ) | $ | i 1,774.1 | ||||||||
Cost
of revenues | i 2.3 | i 1,059.1 | i 515.3 | ( i 228.4 | ) | i 1,348.3 | |||||||||||||
Selling,
engineering, and administrative expenses | i 109.9 | i 84.0 | i 30.7 | i — | i 224.6 | ||||||||||||||
Gains
on dispositions of property | i 1.4 | i 18.5 | i 4.2 | i — | i 24.1 | ||||||||||||||
i 110.8 | i 1,124.6 | i 541.8 | ( i 228.4 | ) | i 1,548.8 | ||||||||||||||
Operating
profit (loss) | ( i 110.8 | ) | i 164.0 | i 150.6 | i 21.5 | i 225.3 | |||||||||||||
Other
(income) expense | ( i 1.4 | ) | i 24.2 | i 96.6 | i — | i 119.4 | |||||||||||||
Equity
in earnings of subsidiaries, net of taxes | i 247.7 | i 35.2 | i 20.2 | ( i 303.1 | ) | i — | |||||||||||||
Income
from continuing operations before income taxes | i 138.3 | i 175.0 | i 74.2 | ( i 281.6 | ) | i 105.9 | |||||||||||||
Provision
(benefit) for income taxes | ( i 6.3 | ) | i 33.4 | i 6.6 | ( i 8.8 | ) | i 24.9 | ||||||||||||
Income
from continuing operations | i 144.6 | i 141.6 | i 67.6 | ( i 272.8 | ) | i 81.0 | |||||||||||||
Income
(loss) from discontinued operations, net of income taxes | ( i 12.6 | ) | i — | i 67.0 | i — | i 54.4 | |||||||||||||
Net
income | i 132.0 | i 141.6 | i 134.6 | ( i 272.8 | ) | i 135.4 | |||||||||||||
Net
income attributable to noncontrolling interest | i — | i — | i — | i 3.4 | i 3.4 | ||||||||||||||
Net
income attributable to controlling interest | $ | i 132.0 | $ | i 141.6 | $ | i 134.6 | $ | ( i 276.2 | ) | $ | i 132.0 | ||||||||
Net
income | $ | i 132.0 | $ | i 141.6 | $ | i 134.6 | $ | ( i 272.8 | ) | $ | i 135.4 | ||||||||
Other
comprehensive income | i 1.8 | i — | i 1.7 | i — | i 3.5 | ||||||||||||||
Comprehensive
income | i 133.8 | i 141.6 | i 136.3 | ( i 272.8 | ) | i 138.9 | |||||||||||||
Comprehensive
income attributable to noncontrolling interest | i — | i — | i — | i 4.5 | i 4.5 | ||||||||||||||
Comprehensive
income attributable to controlling interest | $ | i 133.8 | $ | i 141.6 | $ | i 136.3 | $ | ( i 277.3 | ) | $ | i 134.4 |
Condensed Consolidating Balance Sheet | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in
millions) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | i 87.4 | $ | i 2.3 | $ | i 32.7 | $ | ( i 24.8 | ) | $ | i 97.6 | ||||||||
Receivables,
net of allowance | i 2.9 | i 227.6 | i 74.2 | i — | i 304.7 | ||||||||||||||
Income
tax receivable | i 21.1 | i — | i — | i — | i 21.1 | ||||||||||||||
Inventory | i — | i 592.4 | i 40.6 | ( i 0.1 | ) | i 632.9 | |||||||||||||
Property,
plant, and equipment, net | i 42.3 | i 1,275.9 | i 6,387.5 | ( i 789.0 | ) | i 6,916.7 | |||||||||||||
Investments
in and advances to subsidiaries | i 4,655.8 | i 3,167.3 | i 357.0 | ( i 8,180.1 | ) | i — | |||||||||||||
Restricted
cash | i — | i — | i 92.7 | i 24.8 | i 117.5 | ||||||||||||||
Goodwill
and other assets | i 252.1 | i 300.0 | i 62.8 | ( i 62.3 | ) | i 552.6 | |||||||||||||
$ | i 5,061.6 | $ | i 5,565.5 | $ | i 7,047.5 | $ | ( i 9,031.5 | ) | $ | i 8,643.1 | |||||||||
Liabilities: | |||||||||||||||||||
Accounts
payable | $ | i 4.3 | $ | i 171.5 | $ | i 74.7 | $ | i 0.3 | $ | i 250.8 | |||||||||
Accrued
liabilities | i 179.8 | i 34.4 | i 158.6 | ( i 3.9 | ) | i 368.9 | |||||||||||||
Debt | i 472.7 | i — | i 4,212.5 | i — | i 4,685.2 | ||||||||||||||
Deferred
income taxes | i — | i 860.4 | i 2.2 | ( i 78.5 | ) | i 784.1 | |||||||||||||
Advances
from subsidiaries | i 1,893.8 | i — | i — | ( i 1,893.8 | ) | i — | |||||||||||||
Other
liabilities | i 51.7 | i 41.9 | i 1.2 | i — | i 94.8 | ||||||||||||||
Total
stockholders' equity | i 2,459.3 | i 4,457.3 | i 2,598.3 | ( i 7,055.6 | ) | i 2,459.3 | |||||||||||||
$ | i 5,061.6 | $ | i 5,565.5 | $ | i 7,047.5 | $ | ( i 9,031.5 | ) | $ | i 8,643.1 |
Condensed
Consolidating Balance Sheet | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in
millions) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | i 154.7 | $ | i 4.1 | $ | i 59.1 | $ | ( i 38.7 | ) | $ | i 179.2 | ||||||||
Receivables,
net of allowance | i 12.5 | i 181.8 | i 82.3 | i — | i 276.6 | ||||||||||||||
Income
tax receivable | i 40.4 | i — | i — | i — | i 40.4 | ||||||||||||||
Inventory | i — | i 485.8 | i 40.9 | ( i 2.0 | ) | i 524.7 | |||||||||||||
Property,
plant, and equipment, net | i 42.0 | i 1,436.3 | i 5,579.7 | ( i 723.6 | ) | i 6,334.4 | |||||||||||||
Investments
in and advances to subsidiaries | i 4,558.6 | i 2,981.7 | i 661.1 | ( i 8,201.4 | ) | i — | |||||||||||||
Restricted
cash | i — | i — | i 132.9 | i 38.7 | i 171.6 | ||||||||||||||
Goodwill
and other assets | i 205.1 | i 197.9 | i 106.8 | ( i 47.5 | ) | i 462.3 | |||||||||||||
$ | i 5,013.3 | $ | i 5,287.6 | $ | i 6,662.8 | $ | ( i 8,974.5 | ) | $ | i 7,989.2 | |||||||||
Liabilities: | |||||||||||||||||||
Accounts
payable | $ | i 8.6 | $ | i 134.0 | $ | i 69.9 | $ | ( i 0.4 | ) | $ | i 212.1 | ||||||||
Accrued
liabilities | i 184.3 | i 55.4 | i 128.7 | ( i 0.1 | ) | i 368.3 | |||||||||||||
Debt | i 397.4 | i — | i 3,631.8 | i — | i 4,029.2 | ||||||||||||||
Deferred
income | i — | i 16.5 | i 1.2 | i — | i 17.7 | ||||||||||||||
Deferred
income taxes | i — | i 790.3 | i — | ( i 47.2 | ) | i 743.1 | |||||||||||||
Advances
from subsidiaries | i 1,804.2 | i — | i — | ( i 1,804.2 | ) | i — | |||||||||||||
Other
liabilities | i 56.8 | i — | i — | i — | i 56.8 | ||||||||||||||
Total
stockholders' equity | i 2,562.0 | i 4,291.4 | i 2,831.2 | ( i 7,122.6 | ) | i 2,562.0 | |||||||||||||
$ | i 5,013.3 | $ | i 5,287.6 | $ | i 6,662.8 | $ | ( i 8,974.5 | ) | $ | i 7,989.2 |
Condensed
Consolidating Statement of Cash Flows | |||||||||||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in
millions) | |||||||||||||||||||
Operating activities: | |||||||||||||||||||
Net income | $ | i 116.0 | $ | i 159.9 | $ | i 42.7 | $ | ( i 204.0 | ) | $ | i 114.6 | ||||||||
Loss
from discontinued operations | i 2.1 | i — | i 0.2 | i — | i 2.3 | ||||||||||||||
Equity
in earnings of subsidiaries, net of taxes | ( i 195.4 | ) | ( i 32.0 | ) | ( i 19.7 | ) | i 247.1 | i — | |||||||||||
Other | ( i 17.2 | ) | ( i 159.3 | ) | i 257.5 | ( i 33.9 | ) | i 47.1 | |||||||||||
Net
cash provided by (used in) operating activities | ( i 94.5 | ) | ( i 31.4 | ) | i 280.7 | i 9.2 | i 164.0 | ||||||||||||
Investing
activities: | |||||||||||||||||||
Proceeds from railcar lease fleet sales owned more than one year | i — | i 1,184.6 | i 180.0 | ( i 1,189.6 | ) | i 175.0 | |||||||||||||
Proceeds
from dispositions of property and other assets | i — | i 6.3 | i 13.2 | i — | i 19.5 | ||||||||||||||
Capital
expenditures – leasing | i — | ( i 911.4 | ) | ( i 1,132.5 | ) | i 1,189.6 | ( i 854.3 | ) | |||||||||||
Capital
expenditures – manufacturing and other | ( i 4.0 | ) | ( i 31.7 | ) | ( i 27.6 | ) | i — | ( i 63.3 | ) | ||||||||||
(Increase)
decrease in investment in partially-owned subsidiaries | i — | i 1.6 | i — | ( i 1.6 | ) | i — | |||||||||||||
Other | i — | i — | ( i 0.2 | ) | i — | ( i 0.2 | ) | ||||||||||||
Net
cash (used in) provided by investing activities | ( i 4.0 | ) | i 249.4 | ( i 967.1 | ) | ( i 1.6 | ) | ( i 723.3 | ) | ||||||||||
Financing
activities: | |||||||||||||||||||
Payments to retire debt | ( i 750.0 | ) | i — | ( i 610.8 | ) | i — | ( i 1,360.8 | ) | |||||||||||
Proceeds
from issuance of debt | i 825.0 | i — | i 1,185.2 | i — | i 2,010.2 | ||||||||||||||
Shares
repurchased | ( i 154.9 | ) | i — | i — | i — | ( i 154.9 | ) | ||||||||||||
Dividends
paid to common shareholders | ( i 60.8 | ) | i — | i — | i — | ( i 60.8 | ) | ||||||||||||
Purchase
of shares to satisfy employee tax on vested stock | ( i 8.0 | ) | i — | i — | i — | ( i 8.0 | ) | ||||||||||||
Distributions
to noncontrolling interest | i — | i — | ( i 2.1 | ) | i — | ( i 2.1 | ) | ||||||||||||
Distributions
to controlling interest in partially-owned subsidiaries | i — | i — | ( i 1.6 | ) | i 1.6 | i — | |||||||||||||
Change
in intercompany financing between entities | i 179.9 | ( i 219.8 | ) | i 49.1 | ( i 9.2 | ) | i — | ||||||||||||
Net
cash (used in) provided by financing activities | i 31.2 | ( i 219.8 | ) | i 619.8 | ( i 7.6 | ) | i 423.6 | ||||||||||||
Net
decrease in cash, cash equivalents, and restricted cash | ( i 67.3 | ) | ( i 1.8 | ) | ( i 66.6 | ) | i — | ( i 135.7 | ) | ||||||||||
Cash,
cash equivalents, and restricted cash at beginning of period | i 154.7 | i 4.1 | i 192.0 | i — | i 350.8 | ||||||||||||||
Cash,
cash equivalents, and restricted cash at end of period | $ | i 87.4 | $ | i 2.3 | $ | i 125.4 | $ | i — | $ | i 215.1 |
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||
Nine
Months Ended September 30, 2018 | |||||||||||||||||||
Parent | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in
millions) | |||||||||||||||||||
Operating activities: | |||||||||||||||||||
Net income | $ | i 132.0 | $ | i 141.6 | $ | i 134.6 | $ | ( i 272.8 | ) | $ | i 135.4 | ||||||||
Income
(loss) from discontinued operations | i 12.6 | i — | ( i 67.0 | ) | i — | ( i 54.4 | ) | ||||||||||||
Equity
in earnings of subsidiaries, net of taxes | ( i 247.7 | ) | ( i 35.2 | ) | ( i 20.2 | ) | i 303.1 | i — | |||||||||||
Other | ( i 39.5 | ) | i 29.0 | i 132.9 | ( i 23.9 | ) | i 98.5 | ||||||||||||
Net
cash (used in) provided by operating activities – continuing operations | ( i 142.6 | ) | i 135.4 | i 180.3 | i 6.4 | i 179.5 | |||||||||||||
Net
cash (used in) provided by operating activities – discontinued operations | ( i 12.6 | ) | i — | i 153.0 | i — | i 140.4 | |||||||||||||
Net
cash (used in) provided by operating activities | ( i 155.2 | ) | i 135.4 | i 333.3 | i 6.4 | i 319.9 | |||||||||||||
Investing
activities: | |||||||||||||||||||
Decrease in short-term marketable securities | i 319.5 | i — | i — | i — | i 319.5 | ||||||||||||||
Proceeds
from railcar lease fleet sales owned more than one year | i — | i 707.8 | i 63.3 | ( i 647.7 | ) | i 123.4 | |||||||||||||
Proceeds
from dispositions of property and other assets | i 0.2 | i 3.8 | i 2.9 | i — | i 6.9 | ||||||||||||||
Capital
expenditures – leasing | i — | ( i 611.9 | ) | ( i 711.6 | ) | i 647.7 | ( i 675.8 | ) | |||||||||||
Capital
expenditures – manufacturing and other | ( i 11.6 | ) | ( i 9.9 | ) | ( i 8.5 | ) | i — | ( i 30.0 | ) | ||||||||||
(Increase)
decrease in investment in partially-owned subsidiaries | i — | i 7.1 | i — | ( i 7.1 | ) | i — | |||||||||||||
Other | i — | i — | ( i 1.9 | ) | i — | ( i 1.9 | ) | ||||||||||||
Net
cash (used in) provided by investing activities – continuing operations | i 308.1 | i 96.9 | ( i 655.8 | ) | ( i 7.1 | ) | ( i 257.9 | ) | |||||||||||
Net
cash used in investing activities – discontinued operations | i — | i — | ( i 53.1 | ) | i — | ( i 53.1 | ) | ||||||||||||
Net
cash (used in) provided by investing activities | i 308.1 | i 96.9 | ( i 708.9 | ) | ( i 7.1 | ) | ( i 311.0 | ) | |||||||||||
Financing
activities: | |||||||||||||||||||
Payments to retire debt | ( i 647.6 | ) | ( i 1.8 | ) | ( i 89.5 | ) | i — | ( i 738.9 | ) | ||||||||||
Proceeds
from issuance of debt | i — | i — | i 561.3 | i — | i 561.3 | ||||||||||||||
Shares
repurchased | ( i 156.1 | ) | i — | i — | i — | ( i 156.1 | ) | ||||||||||||
Dividends
paid to common shareholders | ( i 58.1 | ) | i — | i — | i — | ( i 58.1 | ) | ||||||||||||
Purchase
of shares to satisfy employee tax on vested stock | ( i 11.5 | ) | i — | i — | i — | ( i 11.5 | ) | ||||||||||||
Distributions
to noncontrolling interest | i — | i — | ( i 10.3 | ) | i — | ( i 10.3 | ) | ||||||||||||
Distributions
to controlling interest in partially-owned subsidiaries | i — | i — | i 7.1 | ( i 7.1 | ) | i — | |||||||||||||
Change
in intercompany financing between entities | i 289.6 | ( i 161.9 | ) | ( i 135.5 | ) | i 7.8 | i — | ||||||||||||
Other | i — | i — | ( i 3.2 | ) | i — | ( i 3.2 | ) | ||||||||||||
Net
cash (used in) provided by financing activities | ( i 583.7 | ) | ( i 163.7 | ) | i 329.9 | i 0.7 | ( i 416.8 | ) | |||||||||||
Net
(decrease) increase in cash, cash equivalents, and restricted cash | ( i 430.8 | ) | i 68.6 | ( i 45.7 | ) | i — | ( i 407.9 | ) | |||||||||||
Cash,
cash equivalents, and restricted cash at beginning of period | i 763.9 | i 1.6 | i 208.3 | i — | i 973.8 | ||||||||||||||
Cash,
cash equivalents, and restricted cash at end of period | $ | i 333.1 | $ | i 70.2 | $ | i 162.6 | $ | i — | $ | i 565.9 |
• | market conditions and customer demand for our business products and services; |
• | the cyclical nature of
the industries in which we compete; |
• | variations in weather in areas where our highway products are sold, used, or installed; |
• | naturally-occurring events and disasters causing disruption to our manufacturing, product deliveries, and production capacity, thereby giving rise to an increase in expenses, loss of revenue, and property losses; |
• | the
timing of introduction of new products; |
• | the timing and delivery of customer orders, sales of leased railcars, or a breach of customer contracts; |
• | the creditworthiness of customers and their access to capital; |
• | product
price changes; |
• | changes in mix of products sold; |
• | the costs incurred to align manufacturing capacity with demand and the extent of its utilization; |
• | the operating leverage and efficiencies that can be achieved by our manufacturing businesses; |
• | availability
and costs of steel, component parts, supplies, and other raw materials; |
• | competition and other competitive factors; |
• | changing technologies; |
• | surcharges and other fees added to fixed pricing agreements for steel, component parts, supplies, and other raw materials; |
• | interest
rates and capital costs; |
• | counter-party risks for financial instruments; |
• | long-term funding of our operations; |
• | taxes; |
• | the
stability of the governments and political and business conditions in certain foreign countries, particularly Mexico; |
• | changes in import and export quotas and regulations; |
• | business conditions in emerging economies; |
• | costs and results of litigation, including trial and appellate costs; |
• | changes
in accounting standards or inaccurate estimates or assumptions in the application of accounting policies; |
• | legal, regulatory, and environmental issues, including compliance of our products with mandated specifications, standards, or testing criteria and obligations to remove and replace our products following installation or to recall our products and install different products manufactured by us or our competitors; |
• | actions by U.S. and/or foreign governments (particularly Mexico and Canada) relative to federal government
budgeting, taxation policies, government expenditures, borrowing/debt ceiling limits, tariffs, and trade policies; |
• | the use of social or digital media to disseminate false, misleading and/or unreliable or inaccurate information; |
• | the inability to sufficiently protect our intellectual property rights; |
• | if
the Company does not realize some or all of the benefits expected to result from the spin-off of Arcosa, Inc. ("Arcosa"), a new public company focused on infrastructure-related products and services, or if such benefits are delayed; and |
• | if the distribution of shares of Arcosa, together with certain related transactions, does not qualify as a transaction that is generally tax-free for U.S. federal income tax purposes, the Company's stockholders at the time of the distribution and the Company
could be subject to significant tax liability. |
• | Our
revenues for the nine months ended September 30, 2019 were $2,154.4 million representing an increase of 21.4%, compared to the nine months ended September 30, 2018. Our operating profit for the nine months ended September 30, 2019 was $319.1 million representing an increase of 41.6%, compared to the nine months ended September 30,
2018. |
• | The Railcar Leasing and Management Services Group (the "Leasing Group") reported additions to the wholly-owned and partially-owned lease fleet of 7,220 railcars, for a total of 102,090 railcars as of September 30, 2019, an increase of 7.6% compared to September 30, 2018. |
• | For
the nine months ended September 30, 2019, we made a net investment in our lease fleet of approximately $679.3 million, which includes new railcar additions and railcar modifications, net of deferred profit; secondary market purchases; and proceeds from the sales of leased railcars owned more than one year at the time of sale. |
• | The Leasing Group's lease fleet of 102,090 company-owned rail cars was 96.7% utilized as of September 30,
2019, in comparison to a lease fleet utilization of 97.6% on 94,870 company-owned railcars as of September 30, 2018. Our company-owned railcars include wholly-owned, partially-owned, and railcars under sale-leaseback arrangements. |
• | The total value of the railcar backlog at September 30, 2019 was $2.4 billion,
compared to $3.2 billion at September 30, 2018. The Rail Products Group received orders for 7,635 railcars and delivered 15,080 railcars in the nine months ended September 30, 2019, in comparison to orders for 20,750 railcars and deliveries of 14,820 railcars in the nine months ended September 30, 2018. |
• | In connection with the Company's ongoing efforts to optimize its balance sheet, in April 2019, Trinity Rail Leasing 2019 LLC ("TRL-2019"), a Delaware limited liability company and a limited purpose, indirect wholly-owned subsidiary of the Company owned through Trinity Industries Leasing Company (“TILC”), issued $528.3 million of TRL-2019 Secured Railcar Equipment
Notes. These notes bear interest at a fixed rate of 3.82% and have a stated final maturity date of 2049. |
• | We repurchased approximately 5.2 million and 10.8 million shares during the three and nine months ended September 30, 2019, respectively, at a cost of approximately $100.9 million and $233.9 million. The total for the nine months ended September 30,
2019 includes the completion of our previously announced accelerated share repurchase program. As of September 30, 2019, the Company had a remaining authorization to repurchase up to $186.1 million, not to exceed 5.5 million shares, of its common stock under the current repurchase program. |
• | In October 2019, TRL-2019 issued an additional $386.5 million of TRL-2019 Secured Railcar Equipment Notes, consisting of two classes of notes with (i) an aggregate principal amount of $106.9 million of TRL-2019's Series 2019-2 Class A-1 Secured Railcar Equipment Notes (the "Class A-1 Notes"), and (ii) an aggregate principal amount of $279.6 million of TRL-2019's Series 2019-2 Class A-2 Secured Railcar Equipment Notes (the “Class A-2 Notes”). The Class A-1 Notes and Class A-2 Notes bear interest at fixed rates of 2.39% and 3.10%, respectively, and have a stated final maturity date of 2049. Net proceeds received from the transaction are being
used to repay approximately $167 million in outstanding borrowings under the Leasing Group's secured warehouse loan facility, to repay approximately $125 million in outstanding borrowings under the Company's revolving credit facility, and for general corporate purposes. |
Three Months Ended September 30, | Nine
Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in millions) | |||||||||||||||
Revenues | $ | 813.6 | $ | 606.9 | $ | 2,154.4 | $ | 1,774.1 | |||||||
Cost
of revenues | 649.1 | 466.5 | 1,691.0 | 1,348.3 | |||||||||||
Selling, engineering, and administrative expenses | 62.1 | 75.6 | 191.5 | 224.6 | |||||||||||
Gains
on disposition of property | 17.9 | 10.4 | 47.2 | 24.1 | |||||||||||
Total operating profit | 120.3 | 75.2 | 319.1 | 225.3 | |||||||||||
Interest
expense, net | 54.0 | 40.4 | 160.8 | 122.9 | |||||||||||
Other, net | — | (0.4 | ) | 0.2 | (3.5 | ) | |||||||||
Income
from continuing operations before income taxes | 66.3 | 35.2 | 158.1 | 105.9 | |||||||||||
Provision for income taxes | 18.2 | 6.7 | 41.2 | 24.9 | |||||||||||
Income
from continuing operations | $ | 48.1 | $ | 28.5 | $ | 116.9 | $ | 81.0 |
Three Months Ended September 30, 2019 | ||||||||||||||
Revenues | Percent
| |||||||||||||
External | Intersegment | Total | Change | |||||||||||
(in millions) | ||||||||||||||
Railcar Leasing and Management Services Group | $ | 326.2 | $ | 0.2 | $ | 326.4 | 43.5 | % | ||||||
Rail
Products Group | 409.0 | 314.0 | 723.0 | 45.3 | ||||||||||
All Other | 78.4 | 12.0 | 90.4 | (11.7 | ) | |||||||||
Segment
Totals before Eliminations | 813.6 | 326.2 | 1,139.8 | 37.7 | ||||||||||
Eliminations – Lease subsidiary | — | (314.0 | ) | (314.0 | ) | |||||||||
Eliminations
– Other | — | (12.2 | ) | (12.2 | ) | |||||||||
Consolidated Total | $ | 813.6 | $ | — | $ | 813.6 | 34.1 | |||||||
Three
Months Ended September 30, 2018 | ||||||||||||||
Revenues | ||||||||||||||
External | Intersegment | Total | ||||||||||||
(in
millions) | ||||||||||||||
Railcar Leasing and Management Services Group | $ | 227.2 | $ | 0.3 | $ | 227.5 | ||||||||
Rail
Products Group | 290.2 | 207.4 | 497.6 | |||||||||||
All Other | 89.5 | 12.9 | 102.4 | |||||||||||
Segment
Totals before Eliminations | 606.9 | 220.6 | 827.5 | |||||||||||
Eliminations – Lease subsidiary | — | (207.4 | ) | (207.4 | ) | |||||||||
Eliminations
– Other | — | (13.2 | ) | (13.2 | ) | |||||||||
Consolidated Total | $ | 606.9 | $ | — | $ | 606.9 |
Nine Months Ended September 30, 2019 | ||||||||||||||
Revenues | Percent
| |||||||||||||
External | Intersegment | Total | Change | |||||||||||
(in millions) | ||||||||||||||
Railcar Leasing and Management Services Group | $ | 803.3 | $ | 0.6 | $ | 803.9 | 30.6 | % | ||||||
Rail
Products Group | 1,125.9 | 913.0 | 2,038.9 | 23.4 | ||||||||||
All Other | 225.2 | 40.1 | 265.3 | (2.4 | ) | |||||||||
Segment
Totals before Eliminations | 2,154.4 | 953.7 | 3,108.1 | 22.4 | ||||||||||
Eliminations – Lease subsidiary | — | (913.0 | ) | (913.0 | ) | |||||||||
Eliminations
– Other | — | (40.7 | ) | (40.7 | ) | |||||||||
Consolidated Total | $ | 2,154.4 | $ | — | $ | 2,154.4 | 21.4 | |||||||
Nine
Months Ended September 30, 2018 | ||||||||||||||
Revenues | ||||||||||||||
External | Intersegment | Total | ||||||||||||
(in
millions) | ||||||||||||||
Railcar Leasing and Management Services Group | $ | 614.7 | $ | 0.8 | $ | 615.5 | ||||||||
Rail
Products Group | 919.9 | 732.0 | 1,651.9 | |||||||||||
All Other | 239.5 | 32.4 | 271.9 | |||||||||||
Segment
Totals before Eliminations | 1,774.1 | 765.2 | 2,539.3 | |||||||||||
Eliminations – Lease subsidiary | — | (732.0 | ) | (732.0 | ) | |||||||||
Eliminations
– Other | — | (33.2 | ) | (33.2 | ) | |||||||||
Consolidated Total | $ | 1,774.1 | $ | — | $ | 1,774.1 |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Railcar Leasing and Management Services Group | $ | 210.7 | $ | 135.3 | $ | 497.6 | $ | 360.4 | |||||||
Rail
Products Group | 657.6 | 469.6 | 1,854.9 | 1,523.9 | |||||||||||
All Other | 86.5 | 92.9 | 248.6 | 244.2 | |||||||||||
Segment
Totals before Eliminations and Corporate Expenses | 954.8 | 697.8 | 2,601.1 | 2,128.5 | |||||||||||
Corporate | 23.9 | 37.4 | 78.1 | 115.0 | |||||||||||
Eliminations
– Lease subsidiary | (273.3 | ) | (189.3 | ) | (803.5 | ) | (660.7 | ) | |||||||
Eliminations – Other | (12.1 | ) | (14.2 | ) | (40.4 | ) | (34.0 | ) | |||||||
Consolidated
Total | $ | 693.3 | $ | 531.7 | $ | 1,835.3 | $ | 1,548.8 |
Three Months
Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in millions) | |||||||||||||||
Railcar
Leasing and Management Services Group | $ | 115.7 | $ | 92.2 | $ | 306.3 | $ | 255.1 | |||||||
Rail
Products Group | 65.4 | 28.0 | 184.0 | 128.0 | |||||||||||
All Other | 3.9 | 9.5 | 16.7 | 27.7 | |||||||||||
Segment
Totals before Eliminations and Corporate Expenses | 185.0 | 129.7 | 507.0 | 410.8 | |||||||||||
Corporate | (23.9 | ) | (37.4 | ) | (78.1 | ) | (115.0 | ) | |||||||
Eliminations
– Lease subsidiary | (40.7 | ) | (18.1 | ) | (109.5 | ) | (71.3 | ) | |||||||
Eliminations – Other | (0.1 | ) | 1.0 | (0.3 | ) | 0.8 | |||||||||
Consolidated
Total | $ | 120.3 | $ | 75.2 | $ | 319.1 | $ | 225.3 |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | Percent | 2019 | 2018 | Percent | ||||||||||||||||
(in
millions) | Change | (in millions) | Change | ||||||||||||||||||
Revenues: | |||||||||||||||||||||
Leasing
and management | $ | 190.1 | $ | 175.9 | 8.1 | % | $ | 566.6 | $ | 534.7 | 6.0 | % | |||||||||
Sales
of railcars owned one year or less at the time of sale (1) | 136.3 | 51.6 | * | 237.3 | 80.8 | * | |||||||||||||||
Total
revenues | $ | 326.4 | $ | 227.5 | 43.5 | $ | 803.9 | $ | 615.5 | 30.6 | |||||||||||
Operating
profit(2): | |||||||||||||||||||||
Leasing and management | $ | 79.8 | $ | 69.7 | 14.5 | $ | 234.6 | $ | 216.6 | 8.3 | |||||||||||
Railcar
sales: | |||||||||||||||||||||
Railcars owned one year or less at the time of sale | 17.8 | 13.1 | * | 27.0 | 17.5 | * | |||||||||||||||
Railcars
owned more than one year at the time of sale | 18.1 | 9.4 | * | 44.7 | 21.0 | * | |||||||||||||||
Total
operating profit | $ | 115.7 | $ | 92.2 | 25.5 | $ | 306.3 | $ | 255.1 | 20.1 | |||||||||||
Total
operating profit margin | 35.4 | % | 40.5 | % | 38.1 | % | 41.4 | % | |||||||||||||
Leasing
and management operating profit margin: | 42.0 | % | 39.6 | % | 41.4 | % | 40.5 | % | |||||||||||||
Selected
expense information: | |||||||||||||||||||||
Depreciation | $ | 59.4 | $ | 48.8 | 21.7 | % | $ | 171.6 | $ | 140.9 | 21.8 | % | |||||||||
Maintenance
and compliance | $ | 24.9 | $ | 24.1 | 3.3 | % | $ | 79.2 | $ | 75.5 | 4.9 | % | |||||||||
Rent | $ | 3.8 | $ | 9.7 | (60.8 | )% | $ | 13.6 | $ | 29.7 | (54.2 | )% | |||||||||
Selling,
engineering, and administrative expenses | $ | 10.7 | $ | 11.9 | (10.1 | )% | $ | 36.2 | $ | 36.7 | (1.4 | )% | |||||||||
Interest | $ | 50.0 | $ | 37.4 | 33.7 | % | $ | 146.4 | $ | 101.2 | 44.7 | % |
Nine
Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(in millions) | |||||||
Railcars owned one year or less at the time of sale (1) | $ | 237.3 | $ | 80.8 | |||
Railcars
owned more than one year at the time of sale | 175.0 | 123.4 | |||||
$ | 412.3 | $ | 204.2 |
Number of railcars: | |||||
Wholly-owned | 77,485 | 70,220 | |||
Partially-owned | 24,605 | 24,650 | |||
102,090 | 94,870 | ||||
Managed
(third-party owned) | 24,215 | 27,160 | |||
126,305 | 122,030 | ||||
Company-owned railcars (1): | |||||
Average
age in years | 9.4 | 8.9 | |||
Average remaining lease term in years | 3.4 | 3.5 | |||
Fleet utilization | 96.7 | % | 97.6 | % |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | Percent | 2019 | 2018 | Percent | ||||||||||||||||
(in
millions) | Change | (in millions) | Change | ||||||||||||||||||
Revenues: | |||||||||||||||||||||
Rail
Products | $ | 612.3 | $ | 408.2 | 50.0 | % | $ | 1,723.5 | $ | 1,413.1 | 22.0 | % | |||||||||
Maintenance
services | 99.8 | 76.5 | 30.5 | 277.4 | 200.5 | 38.4 | |||||||||||||||
Other | 10.9 | 12.9 | (15.5 | ) | 38.0 | 38.3 | (0.8 | ) | |||||||||||||
Total
revenues | 723.0 | 497.6 | 45.3 | 2,038.9 | 1,651.9 | 23.4 | |||||||||||||||
Operating
costs: | |||||||||||||||||||||
Cost of revenues | 644.8 | 457.0 | 41.1 | 1,816.4 | 1,486.3 | 22.2 | |||||||||||||||
Selling,
engineering, and administrative expenses | 12.5 | 12.6 | (0.8 | ) | 38.2 | 37.6 | 1.6 | ||||||||||||||
Losses
on dispositions of property | 0.3 | — | * | 0.3 | — | * | |||||||||||||||
Operating
profit | $ | 65.4 | $ | 28.0 | 133.6 | $ | 184.0 | $ | 128.0 | 43.8 | |||||||||||
Operating
profit margin | 9.0 | % | 5.6 | % | 9.0 | % | 7.7 | % |
2019 | 2018 | Percent | ||||||||
(in millions) | Change | |||||||||
External
Customers | $ | 1,628.3 | $ | 2,001.2 | ||||||
Leasing Group | 817.4 | 1,199.6 | ||||||||
Total
(1) | $ | 2,445.7 | $ | 3,200.8 | (23.6 | )% |
Three
Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | Percent | ||||||||||||
Change | ||||||||||||||||
Beginning
balance | 23,170 | 24,580 | 30,875 | 22,585 | ||||||||||||
Orders
received | 2,530 | 7,725 | 7,635 | 20,750 | ||||||||||||
Shipments | (5,320 | ) | (3,990 | ) | (15,080 | ) | (14,820 | ) | ||||||||
Other
adjustments (1) | (430 | ) | — | (3,480 | ) | (200 | ) | |||||||||
Ending
balance | 19,950 | 28,315 | 19,950 | 28,315 | ||||||||||||
Average
selling price in ending backlog | $ | 122,591 | $ | 113,043 | 8.4 | % |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | Percent | 2019 | 2018 | Percent | ||||||||||||||||
(in
millions) | Change | (in millions) | Change | ||||||||||||||||||
Revenues: | |||||||||||||||||||||
Highway
Products | $ | 70.1 | $ | 79.4 | (11.7 | )% | $ | 199.3 | $ | 205.9 | (3.2 | )% | |||||||||
Other | 20.3 | 23.0 | (11.7 | ) | 66.0 | 66.0 | — | ||||||||||||||
Total
revenues | 90.4 | 102.4 | (11.7 | ) | 265.3 | 271.9 | (2.4 | ) | |||||||||||||
Operating
costs: | |||||||||||||||||||||
Cost of revenues | 71.3 | 79.9 | (10.8 | ) | 209.4 | 211.5 | (1.0 | ) | |||||||||||||
Selling,
engineering, and administrative expenses | 14.9 | 13.7 | 8.8 | 38.9 | 35.3 | 10.2 | |||||||||||||||
Losses
(gains) on dispositions of property | 0.3 | (0.7 | ) | * | 0.3 | (2.6 | ) | * | |||||||||||||
Operating
profit | $ | 3.9 | $ | 9.5 | (58.9 | ) | $ | 16.7 | $ | 27.7 | (39.7 | ) |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | Percent | 2019 | 2018 | Percent | ||||||||||||||||
(in
millions) | Change | (in millions) | Change | ||||||||||||||||||
Operating costs | $ | 23.9 | $ | 37.4 | (36.1 | )% | $ | 78.1 | $ | 115.0 | (32.1 | )% |
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(in
millions) | |||||||
Net cash flows from continuing operations: | |||||||
Operating activities | $ | 164.0 | $ | 179.5 | |||
Investing
activities | (723.3 | ) | (257.9 | ) | |||
Financing activities | 423.6 | (416.8 | ) | ||||
Net cash flows from discontinued operations | — | 87.3 | |||||
Net
decrease in cash, cash equivalents, and restricted cash | $ | (135.7 | ) | $ | (407.9 | ) |
Nine
Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(in millions) | |||||||
Increase in receivables, inventories, and other assets | $ | (185.6 | ) | $ | (169.4 | ) | |
Increase
in accounts payable, accrued liabilities, and other liabilities | 3.4 | 35.8 | |||||
Changes in operating assets and liabilities | $ | (182.2 | ) | $ | (133.6 | ) |
• | We made a net investment in the lease fleet of $679.3 million during the nine months ended September 30, 2019, compared to $552.4 million in the prior year period. Our net investment in the lease fleet includes new railcar additions
and railcar modifications, net of deferred profit; secondary market purchases; and proceeds from the sales of leased railcars owned more than one year at the time of sale. |
• | Short-term marketable securities decreased by $319.5 million for the nine months ended September 30, 2018. There were no investing activities related to short-term marketable securities during the nine months ended September 30, 2019. |
• | During the nine months ended September 30,
2019, we had total borrowings of $2,010.2 million and total repayments of $1,360.8 million, for net proceeds of $649.4 million, primarily to support our investment in the lease fleet and for general and corporate purposes. During the nine months ended September 30, 2018, we had total borrowings of $561.3 million and total repayments of $738.9 million, for net repayments of $177.6 million, primarily related to the cash settlement of our then-outstanding convertible notes of $646.6 million, partially offset by proceeds from the issuance
of debt in support of our investment in the lease fleet. |
• | We paid $60.8 million and $58.1 million in dividends to our common stockholders during the nine months ended September 30, 2019 and 2018, respectively. |
• | We
repurchased common stock under our authorized share repurchase programs totaling $154.9 million and $156.1 million during the nine months ended September 30, 2019 and 2018, respectively. The cash outlay for shares repurchased during nine months ended September 30, 2019 excludes approximately $70.0 million related to the repurchased shares that were funded in November 2018 under the ASR program but delivered in the first quarter of 2019. Additionally, certain shares of stock repurchased during September 2019,
totaling $9.0 million, were cash settled in October 2019 in accordance with normal settlement practices. |
• | Contractual
obligations that relate to operating leases, decreased by $199.0 million for the exercise of the option to purchase 6,779 railcars previously under operating leases. We completed the purchase on January 14, 2019. See Note 1 and Note 6 of the Consolidated Financial Statements for additional information regarding our operating lease obligations. |
• | In April 2019, TRL-2019 issued $528.3 million of TRL-2019 Secured Railcar Equipment Notes. These notes have a stated final maturity date of 2049. See Note 8 of the Consolidated Financial Statements for additional
information regarding TRL-2019. |
Period | Number of
Shares Purchased (1) | Average Price Paid per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) | |||||||||
July 1, 2019 through
July 31, 2019 | 837,069 | $ | 19.12 | 835,383 | $ | 271,015,960 | |||||||
August
1, 2019 through August 31, 2019 | 1,516,505 | $ | 19.29 | 1,513,503 | $ | 241,821,017 | |||||||
September
1, 2019 through September 30, 2019 | 2,822,796 | $ | 19.75 | 2,822,603 | $ | 186,074,050 | |||||||
Total | 5,176,370 | 5,171,489 |
NO. | DESCRIPTION | |
10.1 | ||
10.1.1 | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101.INS | Inline XBRL Instance Document — the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document (filed electronically herewith). | |
101.CAL | Inline
XBRL Taxonomy Extension Calculation Linkbase Document (filed electronically herewith). | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document (filed electronically herewith). | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed electronically herewith). | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document (filed electronically herewith). | |
104 | Cover
Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
TRINITY INDUSTRIES, INC. | By | |
Registrant | ||
Senior Vice President and | ||
Chief Financial Officer | ||
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
12/31/20 | ||||
4/27/20 | ||||
1/1/20 | ||||
12/31/19 | 10-K, 11-K, 4, SD | |||
12/15/19 | ||||
Filed on: | 10/24/19 | 8-K | ||
10/17/19 | ||||
10/7/19 | ||||
For Period end: | 9/30/19 | 4 | ||
9/27/19 | ||||
9/24/19 | ||||
9/23/19 | ||||
9/4/19 | 8-K | |||
9/1/19 | ||||
8/31/19 | ||||
8/1/19 | ||||
7/31/19 | 4, SC 13D/A | |||
7/24/19 | 8-K | |||
7/1/19 | ||||
6/30/19 | 10-Q, 4 | |||
4/10/19 | ||||
3/31/19 | 10-Q, 4 | |||
3/7/19 | ||||
1/14/19 | ||||
1/7/19 | 8-K | |||
1/1/19 | ||||
12/31/18 | 10-K, 11-K, 4, SD | |||
12/15/18 | ||||
11/16/18 | 8-K | |||
11/1/18 | 3, 4, 8-K | |||
9/30/18 | 10-Q, 4 | |||
6/30/18 | 10-Q, 4 | |||
3/31/18 | 10-Q, 4 | |||
2/12/18 | ||||
1/1/18 | ||||
12/31/17 | 10-K, 11-K, 4, SD | |||
12/6/17 | ||||
11/14/17 | ||||
10/27/17 | ||||
9/29/17 | ||||
5/11/16 | ||||
1/11/16 | ||||
11/5/15 | ||||
6/9/15 | 8-K | |||
10/20/14 | ||||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 2/22/24 Trinity Industries Inc. 10-K 12/31/23 108:18M 2/21/23 Trinity Industries Inc. 10-K 12/31/22 114:22M 2/17/22 Trinity Industries Inc. 10-K 12/31/21 115:21M 2/24/21 Trinity Industries Inc. 10-K 12/31/20 116:22M |