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Sep 30, 2020
Trinity Q3 2020 Earnings Report
Reported solid execution against headwinds, including competitive pricing and declining deliveries.
Key Takeaways
Trinity Industries announced third-quarter results with a total revenue of $459 million. The company reported GAAP earnings per share of $0.21 and adjusted EPS of $0.17. They generated $457 million in both year-to-date operating and free cash flow before leasing investment. The company also announced a new $250 million share repurchase authorization.
Quarterly total company revenues of $459 million
Quarterly income from continuing operations per common diluted share of $0.21 and quarterly adjusted EPS of $0.17
Both year-to-date cash flow from operations and free cash flow before leasing investment were $457 million
Announced new $250 million share repurchase authorization approved subsequent to quarter-end
Revenue by Segment
Forward Guidance
The company anticipates that the structural and cyclical administrative cost reductions completed thus far in 2020 will generate approximately $80 million in future annualized cost savings. The pension plan is expected to be fully settled in the fourth quarter of 2020 and upon settlement, the Company currently expects to recognize a pre-tax non-cash pension settlement charge totaling between $145 million to $160 million.
Positive Outlook
- Cost optimization initiatives expected to generate $80 million in future annualized cost savings.
- Strong balance sheet enables management through the current environment from a position of strength.
- Good pipeline of inquiries for available railcars from strategic buyers and owners of railcar assets.
- Commitment of Trinity’s people to deliver high-quality products and services to our customers
- The company redefined its purpose to ‘Delivering Goods for the Good of All.’
Challenges Ahead
- Market uncertainty continues to cloud demand for railcars as much of the economy remains under pressure.
- Average lease rates and the utilization of our lease fleet remained essentially flat from the second quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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