Loading...
•
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
Trinity
Trinity
Trinity Revenue by Segment
Revenue by Segment
Railcar Leasing and Services Revenue
CapyFin.comRail Products Revenue
CapyFin.com 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
- Higher costs associated with external deliveries in the Rail Products Group
- Lower lease rates and higher depreciation expense in the Leasing Group
Revenue & Expenses
Visualization of income flow from segment revenue to net income