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 2003 RESULTS
DALLAS - February 25, 2004 - Trinity Industries, Inc. (NYSE:TRN) today reported
financial results for the three months and year ended December 31, 2003.
For the quarter ended December 31, 2003, the Company reported a loss of
$0.8 million, or 4 cents per diluted share, on revenues of $415 million. This
compares with a net loss of $11.5 million, or 25 cents per diluted share, on
revenues of $349 million in the same quarter of 2002. The 2003 fourth quarter
included an after-tax loss provision of $4.5 million (10 cents per diluted
share) for certain North American rail and barge contracts that will be
completed in 2004. The estimated losses on certain contracts resulted
primarily from the effect of increases in steel prices related to scrap
surcharges that Trinity was notified of in the first quarter of 2004.
For the year ended December 31, 2003, the Company reported a loss of
$10.0 million, or 25 cents per diluted share, on revenues of $1.4 billion.
This compares with a net loss of $19.6 million, or 43 cents per diluted share,
on revenues of $1.5 billion for 2002.
"I am pleased with our overall operating performance during the 4th
quarter. Each of our business segments other than Inland Barge improved over
the same period last year," said Timothy R. Wallace, Trinity's Chairman,
President and CEO. "In the fourth quarter, our Inland Barge Group's results
were affected by $2.9 million of the after tax charges related to steel prices
discussed above ($4.1 million before tax) and pre-tax litigation related
expenses of $1.5 million. In our Construction Products Group, favorable
weather conditions in the fourth
quarter led to increased revenues in the Concrete & Aggregates and Highway
Safety businesses. In our Industrial Products Group, year over year fourth
quarter improvement in profits were due to improved margins in our propane
tank and tank heads businesses. Our Railcar Leasing and Management Services
Group's revenue increased year over year in the fourth quarter due primarily
to increased railcar sales from the lease fleet," said Wallace.
Trinity's North American railcar shipments increased 33% during the 4th
quarter compared to the 3rd quarter of 2003 and 101% compared to the 4th
quarter of 2002. "The quality of our product mix of railcars during the 4th
quarter contributed to our increased profitability. Our North American backlog
is at the highest level since March 2000 and we are planning to almost double
our railcar shipments in 2004. We expect 2004 to be another transitional year
for Trinity as our North American railcar and barge businesses rebound from
the trough of their markets despite the fact that the majority of our
manufacturing businesses are confronted with increasing steel prices and
potential steel supply shortages. We are working day to day with suppliers of
steel to mitigate the effect this will have on our product deliveries and
profits," 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 Rail Group, the 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 STATEMENTS
(in millions, except per share amounts)
<Table>
<Caption>
Three Months Twelve Months
Ended December 31, Ended December 31,
-------------------------- --------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Revenues $ 414.5 $ 349.4 $ 1,432.8 $ 1,487.3
Operating profit (loss) $ 4.3 $ (2.0) $ 13.4 $ 10.7
Other expense 5.4 11.6 27.7 35.1
---------- ---------- ---------- ----------
Loss before income taxes (1.1) (13.6) (14.3) (24.4)
Provision (benefit) for income taxes (0.3) (2.1) (4.3) (4.8)
---------- ---------- ---------- ----------
Net loss (0.8) (11.5) (10.0) (19.6)
Dividends on Series B preferred stock
(0.8) -- (1.6) --
---------- ---------- ---------- ----------
Loss applicable to common share $ (1.6) $ (11.5) $ (11.6) $ (19.6)
========== ========== ========== ==========
Loss per common share:
Basic $ (0.04) $ (0.25) $ (0.25) $ (0.43)
========== ========== ========== ==========
Diluted $ (0.04) $ (0.25) $ (0.25) $ (0.43)
========== ========== ========== ==========
Weighted average number of shares outstanding:
Basic 45.7 45.5 45.6 45.3
Diluted 45.7 45.5 45.6 45.3
</Table>
Trinity Industries, Inc.
Condensed Segment Data
(in millions)
REVENUES:
<Table>
<Caption>
Three Months Twelve Months
Ended December 31, Ended December 31,
-------------------------- --------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Rail Group $ 240.6 $ 161.0 $ 734.6 $ 629.4
Construction Products Group 120.4 103.9 489.9 504.8
Inland Barge Group 40.8 44.9 170.6 211.7
Industrial Products Group 36.3 37.9 124.8 143.1
Railcar Leasing &
Management Services Group 41.1 33.0 153.8 114.7
All Other 8.0 7.6 30.9 39.5
Eliminations (72.7) (38.9) (271.8) (155.9)
---------- ---------- ---------- ----------
Total revenues $ 414.5 $ 349.4 $ 1,432.8 $ 1,487.3
========== ========== ========== ==========
</Table>
OPERATING PROFIT (LOSS):
<Table>
<Caption>
Three Months Twelve Months
Ended December 31, Ended December 31,
-------------------------- --------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Rail Group $ 7.3 $ (10.4) $ (6.2) $ (41.5)
Construction Products Group 7.7 6.4 37.5 48.3
Inland Barge Group (5.2) 0.4 (4.7) 4.7
Industrial Products Group 4.1 0.1 8.4 2.4
Railcar Leasing & Management
Services Group 10.5 9.9 41.0 31.3
All Other (3.4) (0.8) (8.4) (5.7)
Corporate & Eliminations (16.7) (7.6) (54.2) (28.8)
---------- ---------- ---------- ----------
Consolidated $ 4.3 $ (2.0) $ 13.4 $ 10.7
========== ========== ========== ==========
</Table>
TRINITY INDUSTRIES, INC.
Condensed Consolidated Balance Sheet
(in millions)
<Table>
<Caption>
December 31,
------------------------------
2003 2002
------------ ------------
Cash and equivalents $ 46.0 $ 19.1
Accounts receivable 198.1 168.2
Income tax receivable -- 50.0
Inventories 258.0 213.3
Net property, plant and equipment, at cost (1) 945.2 961.0
Other assets 560.6 544.9
------------ ------------
$ 2,007.9 $ 1,956.5
============ ============
Accounts payable and accrued liabilities $ 460.2 $ 396.0
Debt (2) 395.2 488.9
Deferred income 32.2 16.8
Other liabilities 58.7 53.2
Series B preferred stock 57.8 --
Stockholders' equity 1,003.8 1,001.6
------------ ------------
$ 2,007.9 $ 1,956.5
============ ============
(1) PROPERTY, PLANT AND EQUIPMENT
Corporate/Manufacturing:
Property, plant and equipment $ 868.6 $ 857.7
Accumulated depreciation (569.0) (493.6)
------------ ------------
299.6 364.1
------------ ------------
Leasing:
Equipment on lease 758.5 707.7
Accumulated depreciation (112.9) (110.8)
------------ ------------
645.6 596.9
------------ ------------
$ 945.2 $ 961.0
============ ============
(2) DEBT
Corporate/Manufacturing - Recourse
Revolving commitment $ -- $ 48.0
Term commitment 122.8 149.3
Other 5.7 6.4
------------ ------------
128.5 203.7
------------ ------------
Leasing - Recourse
Equipment trust certificates 170.0 170.0
Other -- 1.4
------------ ------------
170.0 171.4
------------ ------------
Leasing - Non-recourse
Warehouse facility 71.1 113.8
Other 25.6 --
------------ ------------
96.7 113.8
------------ ------------
$ 395.2 $ 488.9
============ ============
</Table>
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