EXHIBIT 99.1
NEWS RELEASE
Media Contact: Investor Contact:
Nancy Farrar Neil Shoop
Farrar Public Relations Treasurer
(817)937-1557 (214)589-8561
FOR IMMEDIATE RELEASE
TRINITY INDUSTRIES REPORTS 2002 OPERATING RESULTS
DALLAS - March 5, 2003. Trinity Industries, Inc. (NYSE:TRN) today
reported financial results for the three months and year ended December 31,
2002.
For the year ended December 31, 2002, the company reported a net loss
of $19.6 million, or 43 cents per diluted share, on revenues of $1.5 billion.
This compares with a net loss (including unusual charges discussed below) of
$74.4 million, or $1.94 per diluted share, on revenues of $1.8 billion for 2001.
For the quarter ended December 31, 2002, the company reported a net
loss of $11.5 million, or 25 cents per diluted share, on revenues of $349
million. This compares with a net loss of $52.2 million, or $1.23 per diluted
share, on revenues of $507.3 million in the same quarter of 2001.
In the year and quarter ended December 31, 2001, the company recorded
pretax charges of $122.2 million and $66.4 million,
respectively ($2.25 per share and $1.30 per share after tax for the year and
quarter, respectively), related to restructuring the Rail Group in connection
with the Thrall merger and the down cycle in the North American railcar industry
and other matters.
"While I am not pleased with a net loss for the year, I am pleased with
the progress we have made in positioning ourselves for the eventual upturn in
railcar demand and in managing through the current business cycle," said Timothy
R. Wallace, Trinity's Chairman, President and CEO.
"During this economic downturn, we have been able to reduce costs,
improve our products and processes, eliminate unprofitable products, and
increase the focus on our customers," added Wallace. "At the same time, we have
reduced our investment in inventory and accounts receivable by $88 million and
secured new long-term financing arrangements to support the growth in our lease
fleet at a time when new credit was very tight."
"Industry railcar demand in North America has improved over the last
two quarters and our market share of new orders was about 45% in the fourth
quarter. Industry orders for railcars in North America have been at a healthy
pace the last two quarters and, if they are sustained at this level over a
longer period, it should bode well for us and our industry. With the investment
we have made in our lease fleet, our Railcar Leasing and Management Services
Group continues to contribute stable earnings," said Wallace.
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, intentions and predictions of future financial performance.
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 Twelve Months Ended
December 31 December 31
------------------------------ ------------------------------
2001* 2002 2001** 2002
------------ ------------ ------------ ------------
Revenues $ 507.3 $ 349.4 $ 1,766.5 $ 1,487.3
Operating profit (loss) $ (57.8) $ (2.0) $ (74.6) $ 10.7
Other expense 10.8 11.6 28.0 35.1
------------ ------------ ------------ ------------
Income (loss) before income taxes (68.6) (13.6) (102.6) (24.4)
Provision (benefit) for income taxes (16.4) (2.1) (28.2) (4.8)
------------ ------------ ------------ ------------
Net income (loss) $ (52.2) $ (11.5) $ (74.4) $ (19.6)
============ ============ ============ ============
Net income (loss) per common share:
Basic $ (1.23) $ (0.25) $ (1.94) $ (0.43)
============ ============ ============ ============
Diluted $ (1.23) $ (0.25) $ (1.94) $ (0.43)
============ ============ ============ ============
Weighted average number of shares outstanding:
Basic 42.3 45.5 38.3 45.3
Diluted 42.3 45.5 38.3 45.3
</Table>
* The three months ended December 31, 2001 includes pretax charges of $66.4
million ($50.4 million after tax or $1.30 per share) related primarily to
restructuring the Company's railcar operations in connection with the Thrall
merger and other matters. For the three months ended December 31, 2001, $64.3
million is included in operating profit and $2.1 million in other expenses.
** The twelve months ended December 31, 2001 includes pretax charges of $122.2
million ($86.1 million after tax or $2.25 per share) related primarily to
restructuring the Company's railcar operations in connection with the Thrall
merger, additional plant closings, severance, asset write downs and litigation.
For the twelve months ended December 31, 2001, $120.1 million is included in
operating profit and $2.1 million in other expenses.
Trinity Industries, Inc.
Condensed Segment Data
(in millions)
REVENUES:
<Table>
<Caption>
Three Months Ended Twelve Months Ended
December 31 December 31
------------------------------ ------------------------------
2001 2002 2001 2002
------------ ------------ ------------ ------------
Rail Group $ 281.5 $ 161.0 $ 957.5 $ 629.4
Construction Products Group 128.1 103.9 550.3 504.8
Inland Barge Group 48.0 44.9 206.7 211.7
Industrial Products Group 37.8 37.9 147.5 143.1
Railcar Leasing & Management
Services Group 43.0 33.0 114.1 114.7
All Other 23.2 7.6 106.0 39.5
Eliminations (54.3) (38.9) (315.6) (155.9)
------------ ------------ ------------ ------------
Total revenues $ 507.3 $ 349.4 $ 1,766.5 $ 1,487.3
============ ============ ============ ============
</Table>
OPERATING PROFIT (LOSS):
<Table>
<Caption>
Three Months Ended Twelve Months Ended
December 31 December 31
------------------------------ ------------------------------
2001 2002 2001 2002
------------ ------------ ------------ ------------
Rail Group $ (66.2) $ (10.4) $ (104.4) $ (41.5)
Construction Products Group 11.1 6.4 48.9 48.3
Inland Barge Group 4.8 0.4 11.6 4.7
Industrial Products Group 1.9 0.1 2.8 2.4
Railcar Leasing & Management
Services Group 11.0 9.9 38.0 31.3
All Other (15.9) (0.8) (35.8) (5.7)
Corporate & Eliminations (4.5) (7.6) (35.7) (28.8)
------------ ------------ ------------ ------------
Consolidated $ (57.8) $ (2.0) $ (74.6) $ 10.7
============ ============ ============ ============
</Table>
Trinity Industries, Inc.
Condensed Consolidated Balance Sheet
(in millions)
<Table>
<Caption>
December 31, 2001 December 31, 2002
----------------- -----------------
Cash and equivalents $ 22.2 $ 19.1
Receivables and inventories 469.7 381.5
Income tax receivable 9.8 50.0
Property, plant and equipment, at cost 1,434.9 1,551.8
Less accumulated depreciation (555.8) (604.4)
Other assets 571.2 544.9
------------ ------------
$ 1,952.0 $ 1,942.9
============ ============
Accounts payable and
accrued liabilities $ 424.9 $ 396.0
Debt 476.3 488.9
Other liabilities 41.4 56.4
Stockholders' equity 1,009.4 1,001.6
------------ ------------
$ 1,952.0 $ 1,942.9
============ ============
</Table>
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