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 NET INCOME FOR
THIRD QUARTER OF 2003
DALLAS -- November 5, 2003 -- Trinity Industries, Inc., (NYSE:TRN)
today reported financial results for the third quarter of 2003.
For the quarter ended September 30, 2003, the company reported net
income of $1.8 million, on revenues of $363.4 million, or 2 cents per diluted
share. This compares to net income of $6.2 million, or 14 cents per diluted
share, on revenues of $387.6 million in the third quarter of 2002. The company
reported that results for the quarter included approximately $1.0 million in
after-tax gains on the sale of excess assets compared to $2.8 million in the
same quarter last year. For the nine months ended September 30, 2003, the
Company reported a net loss of $9.2 million, or 22 cents per diluted share, on
revenues of $1.018 billion compared to a net loss of $8.1 million, or 18 cents
per diluted share, on revenues of $1.138 billion in the same period last year.
Results for the nine months included approximately $3.9 million in after-tax
gains on the sale of excess assets compared to $3.1 million in the same period
last year.
"During the 3rd quarter we began to see signs of improvement in our
railcar manufacturing group. Our North American railcar shipments increased 45%
from the 2nd quarter to approximately 2200 units. Our North American railcar
market share doubled to 46% as our backlog increased 9%. The most positive sign
of a recovery was the fact that our railcar group made its first operating
profit in nine quarters," said Timothy R. Wallace, Trinity's Chairman, President
and CEO. "The capital we have committed to our railcar leasing business is
beginning to be reflected in an increase in the year-over-year operating profit
for our leasing business. We were very pleased to announce during the 3rd
quarter we renewed our short-term leasing financing facility for another year
while at the same time it was increased by $100 million to $300 million. This
was a crucial step in positioning us to continue to offer our railcar customers
leasing alternatives."
"During the 3rd quarter we also saw how reduced spending on highway
projects affects our construction-related businesses. The gains we made in our
rail-related businesses were partially offset by the decrease in profit by our
construction--related businesses.
We are watching this closely as we are transitioning into the off-season for our
construction-related products," Wallace said.
"We were pleased to announce in October that we settled the lawsuit
between our Inland Barge Group and ACF Barge Acceptance I, LLC without an
adverse outcome," added 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, 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 STATEMENTS
(in millions, except per share amounts)
Three Months Nine Months
Ended September 30, Ended September 30,
------------------- -------------------
2003 2002 2003 2002
---- ---- ---- ----
Revenues $ 363.4 $ 387.6 $ 1,018.3 $ 1,137.9
Operating profit $ 10.1 $ 13.7 $ 9.1 $ 12.7
Other expense 8.1 5.4 22.3 23.5
-------- -------- --------- ---------
Income (loss) before income taxes 2.0 8.3 (13.2) (10.8)
Provision (benefit) for income taxes 0.2 2.1 (4.0) (2.7)
-------- -------- --------- ---------
Net income (loss) 1.8 6.2 (9.2) (8.1)
Dividends on Series B preferred stock (0.8) -- (0.8) --
-------- -------- --------- ---------
Net income applicable to common shareholders $ 1.0 $ 6.2 $ (10.0) $ (8.1)
======== ======== ========= =========
Net income (loss) per common share:
Basic $ 0.02 $ 0.14 $ (0.22) $ (0.18)
======== ======== ========= =========
Diluted $ 0.02 $ 0.14 $ (0.22) $ (0.18)
======== ======== ========= =========
Weighted average number of shares outstanding:
Basic 45.6 45.5 45.6 44.5
Diluted 46.2 45.6 45.6 44.5
-4-
Trinity Industries, Inc.
Condensed Segment Data
(in millions)
REVENUES:
Three Months Nine Months
Ended September 30, Ended September 30,
------------------- -------------------
2003 2002 2003 2002
---- ---- ---- ----
Trinity Rail Group $ 190.2 $ 157.9 $ 494.0 $ 468.4
Construction Products Group 133.7 141.5 369.5 400.8
Inland Barge Group 42.5 47.7 129.8 166.8
Industrial Products Group 31.5 41.0 88.5 105.2
Trinity Railcar Leasing &
Management Services Group 29.9 28.1 112.7 81.7
All Other 7.9 14.5 22.9 31.9
Eliminations (72.3) (43.1) (199.1) (116.9)
-------- -------- ---------- ----------
Total Revenues $ 363.4 $ 387.6 $ 1,018.3 $ 1,137.9
======== ======== ========== ==========
OPERATING PROFIT (LOSS):
Three Months Nine Months
Ended September 30, Ended September 30,
------------------- -------------------
2003 2002 2003 2002
---- ---- ---- ----
Trinity Rail Group $ 2.9 $ (6.1) $ (13.5) $ (31.1)
Construction Products Group 11.4 17.2 29.8 41.9
Inland Barge Group 0.3 1.3 0.5 4.3
Industrial Products Group 2.7 3.0 4.3 2.3
Trinity Railcar Leasing & Management
Services Group 9.3 7.2 30.5 21.4
All Other (2.0) (1.1) (5.0) (4.9)
Corporate & Eliminations (14.5) (7.8) (37.5) (21.2)
-------- -------- ---------- ----------
Total Operating Profit $ 10.1 $ 13.7 $ 9.1 $ 12.7
======== ======== ========== ==========
-5-
TRINITY INDUSTRIES, INC.
Condensed Consolidated Balance Sheet
(in millions)
September 30, December 31,
2003 2002
---- ----
Cash and equivalents $ 13.6 $ 19.1
Receivables and inventories 436.9 381.5
Income tax receivable 26.3 50.0
Net property, plant and equipment, at cost (1) 1,071.4 947.4
Other assets 536.8 544.9
---------- ----------
$ 2,085.0 $ 1,942.9
========== ==========
Accounts payable and accrued liabilities $ 414.6 $ 396.0
Debt (2) 537.7 488.9
Other liabilities 82.6 56.4
Series B preferred stock 57.7 --
Stockholders' equity 992.4 1,001.6
---------- ----------
$ 2,085.0 $ 1,942.9
========== ==========
(1) PROPERTY, PLANT AND EQUIPMENT
Corporate/Manufacturing:
Property, plant and equipment $ 944.7 $ 901.8
Accumulated depreciation (560.7) (493.6)
---------- ----------
384.0 408.2
---------- ----------
Leasing:
Equipment on lease 812.0 650.0
Accumulated depreciation (124.6) (110.8)
---------- ----------
687.4 539.2
---------- ----------
$ 1,071.4 $ 947.4
========== ==========
(2) DEBT
Corporate/Manufacturing:
Revolving commitment $ 20.0 $ 48.0
Term commitment 123.1 149.3
Other 5.2 6.4
---------- ----------
148.3 203.7
---------- ----------
Leasing:
Equipment trust certificates 170.0 171.4
Warehouse facility 219.4 113.8
---------- ----------
389.4 285.2
---------- ----------
$ 537.7 $ 488.9
========== ==========
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