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Sep 30, 2021
Trinity Q3 2021 Earnings Report
Reported GAAP earnings from continuing operations of $0.33 per diluted share and adjusted earnings from continuing operations of $0.29 per diluted share.
Key Takeaways
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
Revenue by Segment
Forward Guidance
Trinity expects improving demand for railcars and profitability.
Positive Outlook
- 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.
Challenges Ahead
- 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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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