NYSE$TRN

Trinity Industries Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported GAAP earnings from continuing operations of $0.33 per diluted share and adjusted earnings from continuing operations of $0.29 per diluted share.

Trinity Industries announced third quarter results with revenues of $504 million. GAAP earnings per share was $0.33 and adjusted EPS was $0.29. The company completed an initial railcar portfolio sale and generated significant cash flow.

  • Quarterly total company revenues of $504 million
  • Quarterly income from continuing operations per common diluted share ("EPS") of $0.33 and quarterly adjusted EPS of $0.29
  • Completed initial railcar portfolio sale of $325 million to Signal Rail Holdings LLC, a new railcar investment vehicle ("RIV") partner
  • Lease fleet utilization of 95.0% and Future Lease Rate Differential ("FLRD") of positive 1.4% at quarter end

Headline financials

Total Revenue

$504M

Previous: $459M+9.6%
EPS (adj)

$0.29

Previous: $0.17+70.6%
Fleet Utilization

95.0%

Previous: 94.8%+0.2%
Railcar Deliveries

2.4K

No prior period
New Railcar Orders

2.5K

Previous: 2.0K+26.5%
Capital Expenditures

-$21.5M

Previous: -$70.7M+69.6%
Free Cash Flow

$10.5M

Previous: -$45.6M+123.0%
Net Income

$32M

Previous: $25.1M+27.5%
Operating Income

$92.2M

Previous: $72.9M+26.5%
Gross Profit

$105M

Previous: $125M-16.1%
Cash & Equivalents

$222M

Previous: $121M+83.6%
Total Assets

$8.5B

Previous: $8.72B-2.6%
Stock-Based Comp

$6.5M

Previous: $4.8M+35.4%

Revenue & EPS history

Trinity · Revenue · Quarterly

$504M

Q3 2021+9.6%vs Q3 2020
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Trinity · $525M total across 2 segments · Q3 2021

  • Rail Products
    $340M-10.8%
  • Railcar Leasing and Services
    $186M+0.9%

Forward guidance

Trinity expects improving demand for railcars and profitability.

Tailwinds

  • Market fundamentals for railcar leasing should continue to ramp up into 2022.
  • The company continues to execute well on its strategy to enhance returns and shareholder value
  • The Future Lease Rate Differential climbed again in the third quarter to 1.4%, compared to negative 2.5% and negative 14.8% in the past two quarters.
  • The Signal Rail portfolio sale this past quarter and its resulting benefit to our earnings and balance sheet are a prime example of this dynamic.
  • Enthusiasm to achieve the goals set out in last year's Investor Day presentation has never been stronger.

Headwinds

  • Trinity's third quarter results were negatively impacted by labor shortages and turnover
  • Supply chain disruptions, diluting the impact of margin improvement initiatives in the Rail Products Group
  • The third quarter was challenged
  • Higher costs associated with external deliveries in the Rail Products Group
  • Lower lease rates and higher depreciation expense in the Leasing Group

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-0.6%

Avg return

Earnings day

-1.6%

Avg return

5 days after

-0.2%

Avg return

30 days after

46%

31 / 67 earnings

Positive

+19.1%

Q2 2012

Best reaction

-25.4%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.0%+16.6%+5.2%
Q3 2025-2.7%-6.2%-4.7%
Q1 2025-2.9%-1.9%+2.5%
Q4 2024-8.3%-10.0%-14.1%
Q3 2024-8.8%-5.4%+5.5%
Q2 2024+2.8%+1.5%-0.2%
Q1 2024+15.5%+17.3%+20.9%
Q4 2023-7.3%-7.4%-0.5%
Q3 2023+15.9%+13.7%+23.8%
Q2 2023+2.5%-1.9%-4.4%
Q1 2023-8.7%-9.7%-9.9%
Q4 2022-9.6%-5.5%-19.4%
Q3 2022+7.4%+20.1%+30.1%
Q2 2022+6.0%+7.7%+7.3%
Q1 2022-7.0%-11.1%-18.4%
Q4 2021-5.8%-5.5%+9.7%
Q3 2021+0.5%-2.1%-6.0%
Q2 2021-0.8%+0.0%+5.9%
Q1 2021-2.9%-1.8%-0.5%
Q4 2020-2.8%+2.2%-10.2%
Q3 2020-5.7%-7.3%+0.8%
Q2 2020-7.7%-8.5%-4.9%
Q1 2020+10.4%+4.1%+14.3%
Q4 2019+5.7%-1.0%-26.6%
Q3 2019+1.1%+6.2%+15.0%
Q2 2019-9.1%-5.9%-19.2%
Q1 2019-11.5%-9.5%-13.9%
Q4 2018-2.3%-6.6%-18.1%
Q3 2018-18.3%-23.3%-13.8%
Q2 2018+1.6%+2.1%-0.1%
Q1 2018-0.1%+0.4%+11.0%
Q4 2017-1.4%-6.1%-9.9%
Q3 2017-8.2%-7.8%-1.0%
Q2 2017-3.4%-1.8%+2.9%
Q1 2017+3.0%+0.5%-2.6%
Q4 2016+1.2%-3.8%-4.0%
Q3 2016-2.4%-4.8%+22.0%
Q2 2016+4.2%+1.0%+17.0%
Q1 2016+4.0%
Q4 2015-25.4%
Q3 2015+4.6%
Q2 2015+4.6%
Q1 2015-12.5%
Q4 2014+6.8%
Q3 2014-2.1%
Q2 2014+1.5%
Q1 2014+4.8%
Q4 2013+10.4%
Q3 2013+7.3%
Q2 2013+6.2%
Q1 2013-3.3%
Q4 2012-3.6%
Q3 2012-3.9%
Q2 2012+19.1%
Q1 2012+1.6%
Q4 2011+5.1%
Q4 2010+4.2%
Q3 2011+4.2%
Q2 2011-13.8%
Q1 2010-4.1%
Q1 2011+6.6%
Q4 2008+2.6%
Q3 2009-3.2%
Q3 2010-3.2%
Q2 2010-1.7%
Q4 2009-1.7%
Q2 2009-1.7%

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