Trinity Industries Sees $735MM in Revenue in Q4/2018



Trinity Industries reported its earnings results for the fourth quarter and full year of 2018, including net income from continuing operations attributable to Trinity stockholders of $27.6 million for Q4.

Net income from continuing operations attributable to Trinity stockholders for the fourth quarter of 2017 was $530.4 million, or $3.37 per common diluted share, which included a one-time $3.03 per share benefit related to the Tax Act. Revenues for the fourth quarter of 2018 increased to $735.0 million compared with revenues of $615.4 million for the same quarter of 2017.

For the year ended December 31, 2018, the company reported net income from continuing operations attributable to Trinity stockholders of $105.2 million, or $0.70 per common diluted share. In 2017, the Company reported net income of $599.1 million, or $3.85 per common diluted share, which included a one-time $3.06 per share benefit related to the Tax Act. Revenues for the year ended December 31, 2018 were $2.5 billion compared to revenues of $2.4 billion in 2017.

The company also experienced the following highlights:

In the fourth quarter of 2018:

  • Successfully completed tax-free spin-off of Arcosa to Trinity shareholders
  • Reported earnings from continuing operations per common diluted share (“EPS”) of $0.19 compared with $3.37 in the same quarter of last year
  • EPS for the fourth quarter of 2018 included a one-time non-cash charge of $12.6 million, or $0.07 per share, associated with the write-off of assets held under capital leases in the Railcar Leasing and Management Services Group
  • Leasing Group improved lease fleet utilization to 98.5% as of December 31, 2018, compared with 97.6% as of September 30, 2018
  • Lease fleet increased to 99,215 units in the wholly-owned and partially-owned lease fleet as of December 31, 2018
  • Rail Products Group reported railcar orders and deliveries of 8,045 and 5,285, respectively, during the fourth quarter of 2018, compared to railcar orders and deliveries of 3,180 and 6,150, respectively, during the same period last year
  • Repurchased approximately 12.9 million shares at a cost of $280.0 million under the Company’s previously announced accelerated share repurchase program

For the full year 2018:

  • Reported EPS of $0.70 compared with $3.85 in 2017
  • EPS for the full year 2017 included a one-time $3.06 per share benefit related to the Tax Act
  • Reported total additions of 10,625 railcars to the wholly-owned and partially-owned lease fleets during 2018, an increase of 12.0%
  • Rail Products Group delivered approximately 20,105 railcars in 2018, an increase of 9.3% from 2017
  • Repurchased approximately 17.2 million shares at a cost of $430.1 million
  • Increased loan-to-value ratio of wholly-owned lease fleet to 46.6% at December 31, 2018 as compared to 25.4% at December 31, 2017
    Guidance/Forward Outlook:
  • Expects earnings from continuing operations per common diluted share of $1.15 to $1.35 in 2019, an increase of 64% to 93% as compared to 2018
  • Expects net lease fleet investment of $1.2 billion to $1.4 billion in 2019
  • Expects railcar deliveries of 23,500 to 25,500 railcars from the Rail Products Group in 2019

“The year 2018 was an exciting and transformative year for Trinity Industries on a number of fronts, and our enthusiasm for long-term growth opportunities continues into 2019,” said Timothy R. Wallace, Trinity’s president, chairman and CEO. “The successful separation of Trinity into two public companies positions us to focus our resources on serving the railcar industry through the TrinityRail integrated platform of products and services.”

Headquartered in Dallas, Trinity Industries owns businesses that provide rail transportation products and services in North America and reports its financial results in three principal business segments: the Railcar Leasing and Management Services Group, the Rail Products Group and the All Other Group.


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