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Actionable news in TRN: TRINITY INDUSTRIES Inc,

Trinity: Director Of Investor Relations Vice President, Public Affairs Trinity Industries, Inc. Trinity Industries, Inc.

The following excerpt is from the company's SEC filing.

214/631-4420

214/589-8909

FOR IMMEDIATE RELEASE

Trinity Industries, Inc. Announces

Quarter 2016 Results

DALLAS, Texas -

April 21, 2016

- Trinity Industries, Inc. (NYSE:TRN) today announced earnings results for the

quarter ended

March 31, 2016

, including the following significant highlights:

Quarterly revenues and net income of

$1.2 billion

$97.2 million

, respectively

Quarterly earnings per common diluted share of

, including $0.03 per common diluted share related to sales of leased railcars

Company repurchases approximately

2.1 million

shares of common stock at a cost of

$34.7 million

under its share repurchase authorization during the quarter

Company now anticipates full year 2016 earnings of between $2.00 and $2.30 per common diluted share

Consolidated Results

Trinity Industries, Inc. reported net income attributable to Trinity stockholders of

per common diluted share, for the

. Net income for the same quarter of

$180.2 million

per common diluted share. Revenues for the

totaled

$1.19 billion

compared to revenues of

$1.63 billion

“Trinity's first quarter financial results reflect the deterioration in demand for a number of our products,” said Timothy R. Wallace, Trinity’s Chairman, CEO and President. “Even though our financial results declined quarter over quarter and year over year, I am pleased with our Company's ability to make orderly transitions when market conditions shift. Our people did a good job transitioning from high production levels in the fourth quarter to much lower levels in the first quarter.”

Mr. Wallace added, “We are continuing to reposition and streamline our operations based on current demand levels. Trinity is a much stronger company today than in previous market downturns.”

Business Group Results

In the

, the Rail Group reported revenues of

$846.9 million

$1,144.5 million

in the first quarter of 2015. Operating profit for the Rail Group was

$157.2 million

in the first quarter of 2016 compared to operating profit of

$212.7 million

in the first quarter of 2015. The decrease in revenues and profit was primarily due to lower deliveries and changes in product mix. The Rail Group shipped

railcars and received orders for

railcars during the

quarter. The Rail Group had a backlog of

$4.72 billion

as of

, representing

43,360

railcars, compared to a backlog of

$5.40 billion

December 31, 2015

48,885

railcars. At the end of the first quarter, the backlog of railcar orders extends into 2020.

The Railcar Leasing and Management Services Group ("Leasing Group") reported leasing and management revenues of

$170.5 million

$166.1 million

primarily due to net fleet additions. In addition, the Group recognized revenues of

$8.0 million

quarter from sales of railcars from the lease fleet owned for one year or less compared to

$78.7 million

. Proceeds from the sale of railcars from the lease fleet owned for more than one year at the time of sale are not included in revenue and totaled

$6.7 million

in the first quarter of 2016 and

$78.5 million

in the first quarter of 2015. Operating profit for this Group was

$74.2 million

$122.8 million

. The decrease in operating profit was primarily due to a decrease in the volume of sales of railcars from the lease fleet and higher maintenance expense. Supplemental information for the Leasing Group is provided in the accompanying tables.

The Inland Barge Group reported revenues of

$110.8 million

$153.1 million

$12.6 million

$27.5 million

The decrease in revenues and operating profit compared to the same quarter last year was primarily due to lower tank barge deliveries. As of

, the Inland Barge Group had a backlog of

$318.7 million

$416.0 million

The Energy Equipment Group reported revenues of

$273.4 million

$300.1 million

in the same quarter of

increased slightly to

$37.4 million

$37.2 million

in the same quarter last year. The decrease in revenues compared to the same quarter last year was due to lower delivery volumes in the utility structures business and other product lines partially offset by higher delivery volumes in the wind towers business. The backlog for wind towers as of

$263.4 million

$371.3 million

Revenues in the Construction Products Group were

$124.9 million

$112.8 million

. The Group recorded an operating profit of

$15.9 million

compared to an operating profit of

$8.3 million

. Revenues and operating profit increased compared to the same quarter last year primarily as a result of higher delivery volumes in both the Aggregates and Highway Products businesses.

Cash and Liquidity

, the Company had cash, cash equivalents, and short-term marketable securities of

$835.6 million

. When combined with capacity under committed credit facilities, the Company had approximately

$2.1 billion

of available liquidity at the end of the

Share Repurchase

The Company repurchased

2,070,600

under its share repurchase authorization during the quarter, leaving

$215.4 million

remaining under its current authorization through December 31, 2017.

Earnings Guidance for 2016

For the full year of 2016, the Company anticipates earnings per common diluted share of between $2.00 and $2.30 compared to its previous guidance of between $2.00 and $2.40 per share. The Company’s 2016 earnings guidance is based on the assumption that current market conditions will continue throughout the year. The reduction in the upper end of the earnings guidance range is due to a lower expected level of sales of leased railcars than previously provided.

The Company's current earnings guidance incorporates the sales of between $300 million and $400 million of leased railcars during 2016 compared to its previous guidance of approximately $500 million. The level of interest from participants in the Company's Railcar Investment Vehicle platform remains steady. In the current market environment, the Company is closely evaluating the current returns it may earn from selling portfolios of leased railcars compared to retaining the leased railcars in its wholly-owned lease fleet. During

the first quarter, proceeds from the sales of leased railcars totaled $22.8 million and resulted in $0.03 per common diluted share of earnings.

Actual results in 2016 may differ from present expectations and could be impacted by a number of factors including, among others, fluctuations in prices of commodities that our customers produce and transport; expenses related to current and potential litigation; the operating leverage and efficiencies that can be achieved by the Company's manufacturing businesses; the costs associated with aligning manufacturing production capacity with demand; the level of sales and profitability of manufacturing railcars; the level of profitability associated with the sales of leased railcars; the dilutive impact of the convertible notes related to changes in the Company's stock price; and the impact of weather conditions on our operations and delivery schedules.

Conference Call

Trinity will hold a conference call at 11:00 a.m. Eastern on

April 22, 2016

to discuss its

quarter results. To listen to the call, please visit the Investor Relations section of the Trinity Industries website, www.trin.net and select the Conference Calls menu link. An audio replay may be accessed through the Company’s website or by dialing (402) 220-7220 until 11:59 p.m. Eastern on April 29, 2016.

Trinity Industries, Inc., headquartered in Dallas, Texas, is a diversified industrial company that owns market-leading businesses providing products and services to the energy, transportation, chemical, and construction sectors. Trinity reports its financial results in five principal business segments: the Rail Group, the Railcar Leasing and Management Services Group, the Inland Barge Group, the Construction Products Group, and the Energy Equipment Group. For more information, visit: www.trin.net.

Some statements in this release, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity's estimates, expectations, beliefs, intentions or strategies for the future, and the assumptions underlying these forward-looking statements. Trinity uses the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,” “will,” “should,” “guidance,” “outlook,” and similar expressions to identify these forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” and “Forward-Looking Statements” in the Company's Annual Report on Form 10-K for the most recent fiscal year

- TABLES TO FOLLOW -

Condensed Consolidated Income Statements

(in millions, except per share amounts)

(unaudited)

Three Months Ended

March 31,

1,187.9

1,626.7

Operating costs:

Cost of revenues

1,211.1

Selling, engineering, and administrative expenses

Gains on dispositions of property:

Net gains on lease fleet sales

1,293.6

Interest expense, net

Other, net

Income before income taxes

Provision for income taxes

Net income attributable to noncontrolling interest

Net income attributable to Trinity Industries, Inc.

Net income attributable to Trinity Industries, Inc. per common share:

Diluted

Weighted average number of shares outstanding:

Trinity is required to utilize the two-class method of accounting when calculating earnings per share as a result of unvested restricted shares that have non-forfeitable rights to dividends and are, therefore, considered to be a participating security. The unvested restricted shares are excluded from the weighted average number of shares outstanding for the purposes of determining earnings per share. The two-class method results in a lower earnings per share than is calculated from the face of the income statement. See Earnings Per Share Calculation table below.

Condensed Segment Data

(in millions)

Revenues:

All Other

Segment Totals before Eliminations

1,556.4

1,983.4

Eliminations - lease subsidiary

(283.3

(259.0

Eliminations - other

Consolidated Total

Operating profit (loss):

Segment Totals before Eliminations and Corporate Expenses

Condensed Results of Operations

($ in millions)

Leasing and management

Sales of railcars owned one year or less at the time of sale

Total revenues

Operating profit:

Railcar sales:

Railcars owned one year or less at the time of sale

Railcars owned more than one year at the time of sale

Total operating profit

Operating profit margin:

Total operating profit margin

Selected expense information

Depreciation

Maintenance

March 31,

Leasing portfolio information:

Portfolio size (number of railcars)

79,055

76,765

Portfolio utilization

Three Months Ended March 31,

Proceeds from sales of leased railcars:

Leasing Group:

* Not meaningful

Depreciation, maintenance, and rent expense are components of operating profit. Amortization of deferred profit on railcars sold from the Rail Group to the Leasing Group is included in the operating profit of the Leasing Group resulting in the recognition of depreciation expense based on the Company's original manufacturing cost of the railcars. Interest expense is not a component of operating profit and includes the effect of hedges.

Condensed Consolidated Balance Sheets

Cash and cash equivalents

Short-term marketable securities

Receivables, net of allowance

Income tax receivable

Inventories

Restricted cash

Net property, plant, and equipment

5,523.5

5,348.0

Goodwill

Other assets

8,909.7

8,885.9

Accounts payable

Accrued liabilities

Debt, net of unamortized discount of $40.0 and $44.2

3,171.0

3,195.4

Deferred income

Deferred income taxes

Other liabilities

Stockholders' equity

4,106.0

4,048.7

Additional Balance Sheet Information

Property, Plant, and Equipment

Corporate/Manufacturing:

Property, plant, and equipment

1,870.8

1,861.5

Accumulated depreciation

(920.3

(905.4

Leasing:

Wholly-owned subsidiaries:

Machinery and other

Equipment on lease

4,042.7

3,763.5

(673.3

(647.9

3,380.1

3,126.3

Partially-owned subsidiaries:

2,309.1

2,307.7

(385.4

(369.1

1,923.7

1,938.6

Net deferred profit on railcars sold to the Leasing Group

(730.8

(673.0

Corporate - Recourse:

Revolving credit facility

Senior notes due 2024, net of unamortized discount of $0.4 and $0.4

Convertible subordinated notes, net of unamortized discount of $39.6 and $43.8

Less: unamortized debt issuance costs

Capital lease obligations, net of unamortized debt issuance costs of $0.1 and $0.1

Non-recourse:

Secured railcar equipment notes

Warehouse facility

Partially-owned subsidiaries - Non-recourse:

1,429.5

1,446.9

1,413.1

1,430.0

Leasing Debt Summary

Total Recourse Debt

Total Non-Recourse Debt

2,330.6

2,358.7

2,365.5

2,394.4

Total Leasing Debt

Equipment on Lease

5,303.8

5,064.9

Total Leasing Debt as a % of Equipment on Lease

Combined

(1) Excludes net deferred profit on railcars sold to the Leasing Group.

Condensed Consolidated Cash Flow Statements

Operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

Net gains on railcar lease fleet sales owned more than one year at the time of sale

Changes in assets and liabilities:

(Increase) decrease in receivables

(Increase) decrease in inventories

Increase (decrease) in accounts payable and accrued liabilities

Net cash provided by operating activities

Investing activities:

Proceeds from railcar lease fleet sales owned more than one year at the time of sale

Proceeds from dispositions of property

Capital expenditures - leasing, net of sold lease fleet railcars owned one year or less with a net cost of $5.7 and $53.1

(222.8

(283.4

Capital expenditures - manufacturing and other

(Increase) decrease in short-term marketable securities

(115.0

Acquisitions

Net cash required by investing activities

(356.1

(323.1

Financing activities:

Payments to retire debt

Shares repurchased

Dividends paid to common shareholders

Purchase of shares to satisfy employee tax on vested stock

Distributions to noncontrolling interest

Decrease in restricted cash

Net cash (required) provided by financing activities

Net (decrease) increase in cash and cash equivalents

(150.3

(297.2

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Earnings per Share Calculation

(in millions, except per share amounts)

Basic net income attributable to Trinity Industries, Inc. per common share is computed by dividing net income attributable to Trinity remaining after allocation to unvested restricted shares by the weighted average number of basic common shares outstanding for the period.

March 31, 2015

Average Shares

Unvested restricted share participation

Net income attributable to Trinity Industries, Inc. - basic

Effect of dilutive securities:

Convertible subordinated notes

Net income attributable to Trinity Industries, Inc. - diluted

Reconciliation of EBITDA

“EBITDA” is defined as net income plus interest expense, income taxes, and depreciation and amortization including goodwill impairment charges. EBITDA is not a calculation based on generally accepted accounting principles. The amounts included in the EBITDA calculation are, however, derived from amounts included in the historical consolidated statements of operations data. In addition, EBITDA should not be considered as an alternative to net income or operating income as an indicator of our operating performance, or as an alternative to operating cash flows as a measure of liquidity. We believe EBITDA assists investors in comparing a company’s performance on a consistent basis without regard to depreciation and amortization, which can vary significantly depending upon many factors. However, the EBITDA measure presented in this press release may not always be comparable to similarly titled measures by other companies due to differences in the components of the calculation.

Depreciation and amortization expense

Earnings before interest expense, income taxes, and depreciation and amortization expense

- END -

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Other recent filings from the company include the following:

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