SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-8099
TRINITY INDUSTRIES LEASING COMPANY
(Exact name of registrant as specified in its charter)
Incorporated Under the Laws 75-1640393
of the State of Delaware (I.R.S. Employer
Identification No.)
2000 Gardner Expressway
Quincy, IL 62306
(Address of Principal (Zip Code)
Executive Offices)
Registrant's Telephone Number,
Including Area Code (217) 224-7236
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
and (2) has been subject to such filing requirements for the past
90 days.
Yes X No
1,000
(Number of shares of common stock outstanding as of December 31, 1996)
Part I
Item I - Financial Statements
Trinity Industries Leasing Company
Balance Sheet
(unaudited)
(in millions except share data)
December 31 March 31
1996 1996
Assets
Cash and cash equivalents. . . . . . . . . $ 0.1 $ 5.3
Note receivable from Trinity . . . . . . . 33.5 108.5
Equipment on lease (predominantly
long-term), at cost. . . . . . . . . . . 471.7 391.6
Less accumulated depreciation. . . . . . . (78.6) (70.2)
Other assets . . . . . . . . . . . . . . . 8.9 7.5
$435.6 $442.7
Liabilities and Stockholder's Equity
Accounts payable and accrued liabilities . $ 8.4 $ 9.7
Long-term debt . . . . . . . . . . . . . . 145.9 168.8
Deferred federal income tax. . . . . . . . 70.9 64.9
Other liabilities. . . . . . . . . . . . . 2.2 2.9
227.4 246.3
Stockholder's equity:
Common stock $1 par; authorized 10,000
shares; issued 1,000 shares . . . . . - -
Capital in excess of par value . . . . 19.3 19.3
Retained earnings . . . . . . . . . . . 188.9 177.1
208.2 196.4
$435.6 $442.7
Trinity Industries Leasing Company
Statements of Income
and Retained Earnings
(unaudited)
(in millions)
Nine Months
Ended December 31
1996 1995
Revenues . . . . . . . . . . . . . . . . . $ 55.6 $104.6
Operating costs:
Cost of revenues. . . . . . . . . . . . . 32.6 74.4
Interest expense. . . . . . . . . . . . . 11.3 13.5
43.9 87.9
Operating profit . . . . . . . . . . . . . 11.7 16.7
Other income:
Interest income (including $5.8
and $8.4 from Trinity in 1996
and 1995, respectively). . . . . . . . . 6.1 8.4
Other, net. . . . . . . . . . . . . . . . 0.4 0.1
6.5 8.5
Income before income taxes . . . . . . . . 18.2 25.2
Provision for income taxes:
Current. . . . . . . . . . . . . . . . . 0.4 5.7
Deferred . . . . . . . . . . . . . . . . 6.0 3.1
6.4 8.8
Net income . . . . . . . . . . . . . . . . 11.8 16.4
Retained earnings at beginning of year . . 177.1 156.4
Retained earnings at end of period . . . . $188.9 $172.8
Trinity Industries Leasing Company
Statements of Income
and Retained Earnings
(unaudited)
(in millions)
Three Months
Ended December 31
1996 1995
Revenues . . . . . . . . . . . . . . . . . $ 15.7 $ 24.4
Operating costs:
Cost of revenues. . . . . . . . . . . . . 7.5 15.6
Interest expense. . . . . . . . . . . . . 3.6 4.3
11.1 19.9
Operating profit . . . . . . . . . . . . . 4.6 4.5
Other income:
Interest income (including $1.3
and $3.0 from Trinity in 1996
and 1995, respectively). . . . . . . . . 1.4 3.0
Other, net. . . . . . . . . . . . . . . . 0.3 -
1.7 3.0
Income before income taxes . . . . . . . . 6.3 7.5
Provision for income taxes:
Current. . . . . . . . . . . . . . . . . (0.5) 1.3
Deferred . . . . . . . . . . . . . . . . 2.7 1.3
2.2 2.6
Net income . . . . . . . . . . . . . . . . 4.1 4.9
Retained earnings at beginning of period . 184.8 167.9
Retained earnings at end of period . . . . $188.9 $172.8
Trinity Industries Leasing Company
Statement Of Cash Flows
(unaudited)
(in millions)
Nine Months
Ended December 31
1996 1995
Cash flows from operating activities:
Net income. . . . . . . . . . . . . . . . $11.8 $ 16.4
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation. . . . . . . . . . . . . . 13.9 13.7
Deferred provision for federal income
tax. . . . . . . . . . . . . . . . . . 6.0 3.1
Gain on retirement of equipment. . . . (0.4) (6.6)
Other . . . . . . . . . . . . . . . . . 0.9 0.9
Changes in assets and liabilities:
Increase in other assets . . . . . . . (1.4) (0.2)
Increase (decrease)in accounts payable
and accrued liabilities . . . . . . . (1.3) 2.6
Decrease in other liabilities. . . . .. (0.7) (1.2)
Total adjustments . . . . . . . . . . 17.0 12.3
Net cash provided by operating
activities . . . . . . . . . . . . . . 28.8 28.7
Cash flows from investing activities:
Proceeds from retirement of equipment . 15.9 61.2
Capital expenditures. . . . . . . . . . (102.0) (46.5)
Net cash provided (required) by
investing activities . . . . . . . . . (86.1) 14.7
Cash flows from financing activities:
(Increase) decrease in notes receivable
from parent . . . . . . . . . . . . . 75.0 (8.1)
Payments to retire long-term debt . . . (22.1) (33.6)
Decrease in long-term obligation under
capital lease . . . . . . . . . . . . (0.8) (0.6)
Net cash provided (required) by financing
activities . . . . . . . . . . . . . . 52.1 (42.3)
Net increase (decrease) in cash and
cash equivalents . . . . . . . . . . . (5.2) 1.1
Cash and cash equivalents at beginning of
year. . . . . . . . . . . . . . . . . . . 5.3 0.2
Cash and cash equivalents
at end of period . . . . . . . . . . . . $ 0.1 $ 1.3
The foregoing financial statements are unaudited and have been
prepared from the books and records of the Registrant. In the
opinion of the Registrant, all adjustments, consisting only of
normal and recurring adjustments necessary to a fair presentation
of the financial position of the Registrant as of December 31,
1996 and March 31, 1996 and the results of operations for the
nine and three month periods ended December 31, 1996 and 1995 and
cash flows for the nine month periods ended December 31, 1996 and
1995, in conformity with generally accepted accounting
principles, have been made.
Trinity Industries Leasing Company
Management's Discussion and Analysis of
Financial Condition and Results of Operations
The Registrant is a wholly-owned subsidiary of Trinity Industries,
Inc. ("Trinity").
Financial Condition
The decrease in the 'Note receivable from Trinity' and the increase
in 'Equipment on lease, at cost' compared to March 31, 1996 is due
to additional equipment purchases from Trinity to fulfill current
leasing commitments. The decrease in 'Long-term debt' at December
31, 1996 compared to March 31, 1996 is due primarily to scheduled
principal payments.
Results of Operations
Nine Months Ended December 31, 1996 vs.
Nine Months Ended December 31, 1995
'Revenues' decreased principally due to the sale of selected
railcars in the prior fiscal year.
'Operating profit' decreased principally due to the sale of
selected railcars in the prior fiscal year.
Three Months Ended December 31, 1996 vs.
Three Months Ended December 31, 1995
'Revenues' decreased principally due to the sale of selected
railcars in the third quarter of the prior fiscal year.
'Operating profit' increased principally due to a decrease in
interest expense from the third quarter of the prior fiscal year.
PART II
Item 6 - Exhibits and Reports on Form 8-K.
No Form 8-K was filed during the quarter.
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Trinity Industries Leasing Company
By:/S/ F. Dean Phelps
F. Dean Phelps
Vice President
January 24, 1997
Index to Exhibit
No. Description Page
27 Financial Data Schedule *