EXHIBIT 99.1
NEWS RELEASE
Media Contact: Investor Contact:
Nancy Farrar Neil Shoop
Farrar Public Relations Treasurer
(214)929-3298 (214)589-8561
FOR IMMEDIATE RELEASE
TRINITY INDUSTRIES ANNOUNCES OPERATING RESULTS FOR SECOND QUARTER OF 2002 AND
RAILCAR BACKLOG IMPROVEMENT
DALLAS - July 24, 2002 - Trinity Industries, Inc., (NYSE:TRN) today
reported financial results for the second quarter of 2002.
For the quarter ended June 30, 2002, the company reported a net loss of
$5.7 million, or 13 cents per diluted share, on revenues of $366.0 million. This
compares to a net income of $9.6 million, or 26 cents per diluted share, on
revenues of $467.6 million in the second quarter of 2001. The company reported
that results for the quarter included a $2.2 million pre-tax charge for
collectibility of an LPG equipment lease receivable from a customer entering
bankruptcy during the quarter, $900 thousand of expenses related to issues
surrounding litigation in its Inland Barge segment, and a $1.3 million
charge-off of debt issuance costs related to loan agreements which were replaced
during the quarter. For the six months
ended June 30, 2002, net loss was $14.3 million, or 32 cents per diluted share,
on revenues of $750.3 million compared to net loss of $30.1 million, or 81 cents
per diluted share, on revenues of $886.3 million for the same period last year.
The prior year quarter included unusual charges of $55.8 million ($35.7 million
after tax), or 97 cents per diluted share, primarily related to plant closings
and litigation.
"We are seeing some encouraging signs," said Timothy R. Wallace,
Trinity's chairman, president and CEO. "During the 2nd Quarter, our North
American railcar shipments were at their lowest point in over twelve years and
we believe we hit the bottom of the cycle. Orders for North American railcars
dramatically improved during this time period. The railcar industry had the
first growth in backlog in fourteen quarters. Our North American backlog for
railcars increased during the quarter by 1800 units, which was a 140%
improvement compared to where we were at the end of the 1st quarter. While the
numbers involved do not yet represent a long-term recovery, it is a move in the
right direction and we are encouraged by it. We are staying focused on managing
through the business cycle in order to be very strong in a recovering market."
"Our Construction Products segment continues to perform well and
backlogs are holding up in our other businesses. While we expect positive
earnings and cash flow from our four business segments other than railcar this
year, our outlook for the year
is a consolidated loss per share in the range of 25 to 40 cents per share, "
Wallace said.
Trinity Industries, Inc., with headquarters in Dallas, Texas, is one of
the nation's leading diversified industrial companies. Trinity reports five
principal business segments: the Trinity Rail Group, Trinity Railcar Leasing and
Management Services Group, the Inland Barge Group, the Construction Products
Group and the Industrial Products Group. Trinity's web site may be accessed at
http://www.trin.net.
This news release contains "forward looking statements" as defined by
the Private Securities Litigation Reform Act of 1995 and includes statements as
to expectations, beliefs and future financial performance, or assumptions
underlying or concerning matters herein. These statements that are not
historical facts are forward looking.
Readers are directed to Trinity's Form 10-K and other SEC filings for a
description of certain of the business issues and risks, a change in any of
which could cause actual results or outcomes to differ materially from those
expressed in the forward looking statements. Any forward looking statement
speaks only as of the date on which such statement is made. Trinity undertakes
no obligation to update any forward looking statement or statements to reflect
events or circumstances after the date on which such statement is made.
- TABLES TO FOLLOW -
Trinity Industries, Inc.
Condensed Consolidated Income Statement
(in millions, except per share amounts)
<Table>
<Caption>
Three Months Ended Six Months Ended
June 30 June 30
------------------- ---------------------
2001 2002 2001* 2002
-------- -------- --------- --------
Revenues $ 467.6 $ 366.0 $ 886.3 $ 750.3
Operating profit (loss) $ 22.6 $ 3.2 $ (35.6) $ (1.0)
Other expense 6.9 10.9 10.8 18.1
-------- -------- --------- --------
Income (loss) before income taxes 15.7 (7.7) (46.4) (19.1)
Provision (benefit) for income taxes 6.1 (2.0) (16.3) (4.8)
-------- -------- --------- --------
Net income (loss) $ 9.6 $ (5.7) $ (30.1) $ (14.3)
======== ======== ========= ========
Net income (loss) per common share:
Basic $ 0.26 $ (0.13) $ (0.81) $ (0.32)
======== ======== ========= ========
Diluted $ 0.26 $ (0.13) $ (0.81) $ (0.32)
======== ======== ========= ========
Weighted average number of shares outstanding:
Basic 37.0 45.5 37.0 44.5
Diluted 37.1 45.5 37.0 44.5
</Table>
* The six months ended June 30, 2001 includes pretax charges of $55.8 million
($35.7 million after tax or $0.97 per share) related primarily to restructuring
the Company's railcar operations and litigation. For the six months ended June
30, 2001, $53.9 million is included in cost of revenues and $1.9 million in SE&A
expenses.
Trinity Industries, Inc.
Condensed Segment Data
(in millions)
REVENUES:
<Table>
<Caption>
Three Months Ended Six Months Ended
-------------------- --------------------
June 30 June 30
-------------------- --------------------
2001 2002 2001 2002
-------- -------- -------- --------
Rail Group $ 238.3 $ 139.4 $ 531.7 $ 310.5
Construction Products Group 157.8 146.2 275.9 259.3
Inland Barge Group 49.6 57.9 108.1 119.1
Industrial Products Group 31.7 32.9 70.2 64.2
Railcar Leasing & Management
Services Group 26.5 26.9 46.6 53.6
All Other 27.0 8.2 54.5 17.4
Eliminations (63.3) (45.5) (200.7) (73.8)
-------- -------- -------- --------
Total revenues $ 467.6 $ 366.0 $ 886.3 $ 750.3
======== ======== ======== ========
</Table>
OPERATING PROFIT (LOSS):
<Table>
<Caption>
Three Months Ended Six Months Ended
-------------------- --------------------
June 30 June 30
-------------------- --------------------
2001 2002 2001 2002
-------- -------- -------- --------
Railcar Group $ 4.0 $ (12.8) $ (34.6) $ (25.0)
Construction Products Group 16.8 17.2 20.1 24.7
Inland Barge Group 2.9 1.1 4.7 3.0
Industrial Products Group (0.4) (1.6) (1.5) (0.7)
Railcar Leasing & Management
Services Group 10.1 7.1 17.9 14.2
All Other (3.2) (0.9) (17.9) (3.8)
Corporate & Eliminations (7.6) (6.9) (24.3) (13.4)
-------- -------- -------- --------
Consolidated $ 22.6 $ 3.2 $ (35.6) $ (1.0)
======== ======== ======== ========
</Table>
Trinity Industries, Inc.
Condensed Consolidated Balance Sheet
(in millions)
<Table>
<Caption>
December 31, 2001 June 30, 2002
----------------- -------------
Cash and equivalents $ 22.2 $ 10.6
Receivables and inventories 479.5 458.3
Property, plant and equipment, at cost 1,434.9 1,516.2
Less accumulated depreciation (555.8) (610.6)
Other assets 571.2 556.8
----------------- -------------
$ 1,952.0 $ 1,931.3
================= =============
Accounts payable and
accrued liabilities $ 424.9 $ 377.4
Debt 476.3 454.9
Other liabilities 41.4 69.8
Stockholders' equity 1,009.4 1,029.2
----------------- -------------
$ 1,952.0 $ 1,931.3
================= =============
</Table>
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