ENP Newswire - 20 February 2014
Release date- 19022014 - DALLAS - Trinity Industries Inc. (TRN) today announced earnings results for the fourth quarter and full year ended December 31, 2013, including the following significant highlights:
Record fourth quarter and full year 2013 earnings per common diluted share of $1.44 and $4.75, respectively
Year-over-year fourth quarter and full year revenue growth of 24% and 15%, respectively, and earnings per common diluted share growth of 60% and 49%, respectively
Rail Group receives orders for 7,125 new railcars during the fourth quarter resulting in a backlog of 39,895 units with a value of $5.0 billion
Company repurchases 639,000 shares of its common stock during the quarter at a cost of $34.3 million, resulting in full-year repurchases of 2,473,000 shares at a cost of $108.2 million
Company issues earnings guidance for full year 2014 reflecting record results of between $6.30 and $7.00 per common diluted share, a year-over-year increase of between 33% and 47%
Trinity Industries, Inc. reported net income attributable to Trinity stockholders of $112.8 million, or $1.44 per common diluted share, for the fourth quarter ended December 31, 2013. Net income for the same quarter of 2012 was $71.3 million, or $0.90 per common diluted share. Revenues for the fourth quarter of 2013 increased 24% to $1.3 billion compared to revenues of $1.0 billion for the same quarter of 2012.
For the year ended December 31, 2013, the Company reported net income attributable to Trinity stockholders of $375.5 million, or $4.75 per common diluted share. In 2012, the Company reported net income of $255.2 million, or $3.19 per common diluted share. Revenues for the year ended December 31, 2013 were $4.4 billion, a 15% increase compared to revenues of $3.8 billion in 2012.
'I am pleased with our strong financial results for the fourth quarter and our overall performance during 2013,' said Timothy R. Wallace, Trinity's Chairman, CEO and President. 'We achieved a number of key financial milestones, reporting record revenues, net income and earnings per share for both the fourth quarter and the full year. I am very proud of our people, whose capabilities and hard work enabled us to realign a portion of our manufacturing capacity to serve customers for products in the oil, gas, and chemical industries. During 2013, we announced two transactions with institutional investors desiring to invest in a portfolio of leased railcars, RIV 2013, a $1 billion railcar investment partnership, and Element Financial, through a $2 billion program agreement. I expect these transactions will continue to create value for the Company.'
Mr. Wallace added, 'During 2014, we will continue to invest resources to position our company to pursue opportunities for infrastructure-related products that support the growing needs in the energy, chemical, transportation, and construction industries. We have a great deal of positive momentum occurring within Trinity.'
Business Group Results
In the fourth quarter of 2013, the Rail Group reported record revenues of $855.5 million and a record operating profit of $157.4 million, resulting in increases compared to the fourth quarter of 2012 of 50% and 123%, respectively. The Rail Group shipped 7,280 railcars and received orders for 7,125 railcars during the fourth quarter. The Rail Group backlog decreased slightly to $5.0 billion at December 31, 2013, representing 39,895 railcars, compared to a backlog of $5.1 billion as of September 30, 2013, representing 40,050 railcars.
During the fourth quarter of 2013, the Railcar Leasing and Management Services Group reported leasing and management revenues of $151.3 million compared to $132.6 million in the fourth quarter of 2012 due to continued growth in the lease fleet and higher rental rates. In addition, the Group recognized $39.5 million in sales of railcars from the lease fleet owned for less than a year during the fourth quarter compared to $18.1 million in the fourth quarter of 2012. Proceeds from the sale of railcars from the lease fleet owned for more than a year at the time of sale are not included in revenue and totaled $72.3 million in the fourth quarter of 2013 and $31.4 million in the fourth quarter of 2012. Operating profit for this Group was $85.5 million for the fourth quarter of 2013 compared to operating profit of $72.9 million during the fourth quarter of 2012. Included in the operating results for the fourth quarter of 2013 was $16.4 million of profit from railcar sales totaling $111.8 million compared to $15.3 million of profit from railcar sales totaling $49.5 million for the same period last year. Operating profit from operations, which excludes profit from railcar sales, increased for the three months ended December 31, 2013 compared to the same period last year due to higher rental rates and lease fleet growth.
The Inland Barge Group reported revenues of $142.9 million compared to revenues of $165.4 million in the fourth quarter of 2012. Operating profit for this Group was $27.0 million in the fourth quarter of 2013 compared to $31.2 million in the fourth quarter of 2012. The decrease in revenues and operating profit compared to last year was due to lower delivery volumes and a change in product mix during the fourth quarter of 2013 compared to the same quarter last year. The Inland Barge Group received orders of $96.5 million during the quarter, and as of December 31, 2013 had a backlog of $429.6 million compared to a backlog of $476.0 million as of September 30, 2013.
The Energy Equipment Group reported revenues of $188.5 million in the fourth quarter of 2013 compared to revenues of $167.3 million in the same quarter of 2012. Revenues increased compared to the same period in 2012 due to increased demand for storage containers offset slightly by a change in product mix in our structural wind towers business. Operating profit for the fourth quarter of 2013 increased to $17.2 million compared to $8.5 million in the same quarter last year. Structural wind towers received orders with a value of $11.5 million during the quarter, resulting in a backlog for structural wind towers as of December 31, 2013 of $553.9 million, compared to a backlog of $609.9 million as of September 30, 2013.
Revenues in the Construction Products Group were $117.5 million in the fourth quarter of 2013 compared to revenues of $109.8 million in the fourth quarter of 2012. The Group recorded an operating profit of $7.3 million in the fourth quarter of 2013 compared to an operating profit of $9.4 million in the fourth quarter of 2012. Revenues increased for the fourth quarter of 2013 compared to the same period in 2012 primarily due to higher acquisition-related volumes in our Aggregates business while operating profit decreased due to product mix changes. In March 2013, the Company completed the sale of its remaining ready-mix concrete operations which have been historically reported as a component of the Construction Products Group. This divestiture is considered a discontinued operation and, accordingly, the effects of its operations have been excluded from the Construction Products Group for financial reporting purposes.
At December 31, 2013, the Company had cash and marketable securities of $578.2 million. When combined with capacity under committed credit facilities, the Company had approximately $1.3 billion of available liquidity at the end of the fourth quarter.
The Company anticipates earnings for the first quarter of 2014 of between $2.45 and $2.65 per common diluted share, which includes $1.00 to $1.10 of previously announced profit from railcar sales already closed during 2014 under the Company's program agreement with Element Financial. This compares to $0.99 per common diluted share in the first quarter of 2013, which included a $0.08 per share gain on the sale of the Company's remaining ready-mix concrete operations. For the full year of 2014, the Company anticipates earnings per common diluted share of between $6.30 and $7.00 compared to full year earnings per common diluted share of $4.75 in 2013. Actual results may differ from present expectations, as noted below.
During the quarter, the Company repurchased 639,000 shares of common stock under its share repurchase authorization at a cost of $34.3 million leaving $91.8 million remaining under its current authorization through December 31, 2014.
Trinity will hold a conference call at 11:00 a.m. Eastern on February 20, 2014 to discuss its fourth quarter and full year results. To listen to the call, please visit the Investor Relations section of the Trinity Industries website, www.trin.net. An audio replay may be accessed through the Company's website or by dialing (402) 220-0117 until 11:59 p.m. Eastern on February 27, 2014.
Trinity Industries, Inc., headquartered in Dallas, Texas, is a diversified industrial company that owns market-leading businesses which provide products and services to the energy, transportation, chemical, and construction sectors. Trinity reports its financial results in five principal business segments: the Rail Group, the Railcar Leasing and Management Services Group, the Inland Barge Group, the Construction Products Group, and the Energy Equipment Group. For more information, visit: www.trin.net.
Some statements in this release, which are not historical facts, are 'forward-looking statements' as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity's estimates, expectations, beliefs, intentions or strategies for the future, and the assumptions underlying these forward-looking statements. Trinity uses the words 'anticipates,' 'believes,' 'estimates,' 'expects,' 'intends,' 'forecasts,' 'may,' 'will,' 'should,' 'guidance' and similar expressions to identify these forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see 'Risk Factors' and 'Forward-Looking Statements' in the Company's Annual Report on Form 10-K for the most recent fiscal year.
Trinity Industries, Inc.
Condensed Consolidated Income Statements
Jessica Greiner, 214-631-4420
Director of Investor Relations
Jack Todd, 214-589-8909