Investor Presentation
March 2018
Investor Contact: TrinityInvestorRelations@trin.net
Website: www.trin.net
Exhibit 99.1
Forward Looking Statements
Some statements in this presentation, which are not historical facts, are “forward-looking statements” as defined by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity's estimates, expectations, beliefs, intentions or
strategies for the future, and the assumptions underlying these forward-looking statements, including, but not limited to, statements
regarding the effect of The Tax Cuts and Jobs Act on Trinity's financial results, any non-cash tax benefits from the remeasurement of Trinity's
net deferred tax liabilities, the anticipated separation of Trinity into two separate public companies, the expected timetable for completing the
spin-off transaction, whether or not the spin-off transaction occurs, future financial and operating performance of each company, benefits and
synergies of the spin-off transaction, strategic and competitive advantages of each company, future opportunities for each company and any
other statements regarding events or developments that Trinity believes or anticipates will or may occur in the future. Trinity uses the words
“anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,” “will,” “should,” “guidance,” “outlook,” and similar
expressions to identify these forward-looking statements. Forward-looking statements speak only as of the date of this presentation, and
Trinity expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained
herein to reflect any change in Trinity’s expectations with regard thereto or any change in events, conditions or circumstances on which any
such statement is based. There is no assurance that the proposed spin-off transaction will be completed, that the Company's Board of
Directors will continue to pursue the proposed spin-off transaction (even if there are no impediments to completion), that the Company will be
able to separate its businesses, or that the proposed spin-off transaction will be the most beneficial alternative considered. Forward looking
statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present
expectations, including but not limited to risks and uncertainties regarding economic, competitive, governmental, and technological factors
affecting Trinity’s operations, markets, products, services and prices, as well as any changes in or abandonment of the proposed separation or
the ability to effect the separation and satisfy the conditions to the proposed separation, and such forward-looking statements are not
guarantees of future performance.
For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking
statements, see “Risk Factors” and “Forward-Looking Statements” in the Company's Annual Report on Form 10-K for the most recent fiscal
year, and as may be revised and updated by our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
2
Agenda
I. Trinity Industries, Inc. Overview Today
II. Overview and Rationale for Planned Spin-off
III. Spin-off Timeline and Progress Report
IV. Appendix
3
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
2009 2010 2011 2012 2013 2014 2015 2016 2017
Rail Group Leasing
Barge CPG
EEG All Other
EPS, Total Company-Diluted
• Trinity Industries, Inc. is a diversified industrial
company that owns complementary market-leading
businesses providing products and services to the
energy, chemical, agriculture, transportation, and
construction sectors
• Trinity operates through five business segments:
• Rail Group
• Railcar Leasing and Management Services Group
(“Leasing”)
• Inland Barge Group
• Construction Products Group (“CPG”)
• Energy Equipment Group (“EEG”)
• The Company serves its customers through
manufacturing facilities located in North America and
had approximately 15,605 employees at the end of
2017
• Total Revenue and EBITDA for FY 2017 was $3.7 billion
and $851 million, respectively
• FY 2017 EPS excludes the non-cash tax benefit related
to the U.S. Tax Cuts and Jobs Act and spin-off related
transaction costs
4
I. Trinity Industries, Inc. Overview Today
External Revenue by Business Group(1)
All share and per share information has been retroactively adjusted to reflect
the 2-for-1 stock split effective in June 2014.
All Footnotes throughout the presentation are listed on Slide 28.
Rev
e
n
u
e
($mm)
E
P
S
(2) (3)
(3)
Rail Group Leading manufacturer of railcars
Leading manufacturer of railcar axles
Leading manufacturer of railcar coupling devices
Railcar Leasing and
Management Services
Group
Leading provider of railcar leasing and management
services
Inland Barge Group Leading manufacturer of inland barges and fiberglass
barge covers in the United States
Construction Products
Group
Leading full-line manufacturer of highway guardrail and
crash cushions in the United States
Leading producer and distributor of lightweight and
natural construction aggregates in certain regions in the
United States
Energy Equipment
Group
Leading manufacturer of structural wind towers
Leading manufacturer of storage and distribution
containers and tank heads for pressure and non-
pressure vessels
Leading manufacturer of steel utility structures for
electricity transmission and distribution
5
Leading Market Positions in North America
6
Diversified Portfolio of Businesses
PRESENT (FY 2017) Elevating Our Financial Performance
Total Revenues = $3.7 B
PAST (FY 2000)
Total Revenues = $2.7 B
All Footnotes throughout the presentation are listed on Slide 28.
(2) (2)
We strive to outperform prior cyclical peaks
with higher EPS and better returns; raise the
earnings floor; and improve balance sheet
strength during cyclical downturns
(2) (2)
Revenue
Operating
Profit (1)
(3)
35%
23%
14%
24%
4%
Revenue
31%
45%
9%
14%
1%
Rail Leasing CPG EEG Barge
Operating
Profit (1)
(4)
-$0.50
$0.50
$1.50
$2.50
$3.50
$4.50
$5.50
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Calendar Year EPS
7
Flexible and Cost-Effective Manufacturing
In recent years, Trinity has invested significantly in its manufacturing footprint establishing a strong
manufacturing platform and ability to respond to changes in market demand
Flexibility
Cost-Effective
Trinity's manufacturing flexibility
across products enhances our
ability to opportunistically
respond to changes in market
demand
Trinity’s manufacturing scale,
vertical integration, and presence
in the Southern U.S. and Mexico
provides cost effective benefits
across multiple business
segments
Incorporated in 1933 with a strong corporate culture and commitment to
Company values
Seasoned management team knows how to assess the market, proactively plan
for cycles and quickly adapt to changing market conditions
Cost-effective and flexible manufacturing footprint is a competitive advantage
for many of our product lines
Significant liquidity position of approximately $2.5 billion and a strong balance
sheet at quarter end December 31, 2017
Track record of maintaining a healthy liquidity position across the business cycle
8
Seasoned Performer Across Market Conditions
9
Maintain a
conservative and
liquid balance
sheet to be
attractively
positioned to
capitalize on
opportunities
Working Capital
Capital
Expenditures
Acquisitions
Shareholder
Distributions
Cash, Cash Equivalents,
& Short Term Marketable Securities $1,098
Corporate Revolver Availability 521
Warehouse Availability 849
Total Available Liquidity $2,468 mm
Balance Sheet Debt ~ $3.3 B(1)
Available Liquidity ~ $2.5 B
Equity ~ $4.9 B
Recourse Debt
Senior Notes(1) $400
Convertible Subordinated Notes(1) 449
Capital Leasing Obligations(1) 29
Total Recourse $878 mm
Non-Recourse Leasing Debt(2)
Warehouse Facility(1) $151
Long-term Financings:
Wholly-Owned(1) 885
Partially-Owned(1) 1,365
Total Non-Recourse Leasing $2,401 mm
As of 12/31/17
All Footnotes throughout the presentation are listed on Slide 28.
Healthy Financial Position to Complete Spin-off
$443 $470
$612
$774
$989
$1,502
$1,713
$1,032
$851
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2009 2010 2011 2012 2013 2014 2015 2016 2017
$0.67
$0.43
$0.88
$1.59
$2.38
$4.19
$5.08
$2.25
$1.52
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
2009 2010 2011 2012 2013 2014 2015 2016 2017
10
Financial Highlights
Trinity’s EPS Summary FY 2009 – FY 2017(3)
FY 2017 vs. FY 2016(1)
Revenues decreased 20.3% to $3.66 billion from $4.59
billion
Operating profit decreased 31.4% to $423.3 million from
$617.0 million(2)
EBITDA decreased 17.5% to $851.4 million from $1.03
billion
Earnings per common diluted share decreased 32.4% to
$1.52 from $2.25 per diluted share(6)
Trinity’s EBITDA Summary FY 2009 – FY 2017(7)
All Footnotes throughout the presentation are listed on Slide 28.
(4) (5) (6)
~ $1.15 - $1.35
~ $1.00 - $1.20
~ $130 - $150mm
~ $25mm
~ $0.05
~ 24%
~ $100 - $150mm
11
FY 2018 Guidance and Outlook (As of February 22, 2018)
Any forward-looking statements made by the Company speak only as of the date on which they are made. The Company is under no obligation to, and expressly disclaims any obligation to, update
or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise.
Rail Group
Total Company
Leasing Group
Inland Barge
Group
Construction
Products
Group
Energy
Equipment
Group
EPS, excluding spin-off transaction costs:
Total EPS:
Corporate expense, excluding spin-off transaction costs:
Spin-off transaction costs:
Convertible dilution per share:
Tax rate, excluding spin-off transaction costs:
Manufacturing & corporate CapEx:
Revenue:
Operating margin:
Railcar deliveries:
Revenue elimination from sales to Leasing Group:
Operating profit elimination from Sales to Leasing Group:
Leasing and management revenues:
Leasing and management operating profit:
Proceeds from sales of leased railcars: (not included in above
revenues and operating profit; primarily expected 2Q & 4Q)
Net investment in lease fleet:
Revenue:
Operating margin:
Revenue:
Operating margin:
Revenue:
Operating margin:
~ $2.2B
~ 8.0%
~ 20,500
~ $845mm
~ $95mm
~ $715mm
~ $290mm
~ 350mm
~ $500mm
~ $155mm
~ 0.0%
~ $550mm
~ 12.5%
~ $865mm
~ 8.5%
12
II. Overview and Rationale for Planned Spin-Off
13
• On December 12, 2017, Trinity Industries announced a plan to pursue the
spin-off of its infrastructure-related businesses to shareholders
• Transaction is expected to result in two separate public companies that
will benefit from:
– Leading positions in their respective industries
– Strong free cash flow generation
– Compelling growth opportunities
• Separation is planned as tax-free spin-off to shareholders for U.S. federal
income tax purposes
• Expected to be completed in the fourth quarter of 2018
Spin-off of Infrastructure-Related Businesses
14
Strategic Rationale
• Enhances Overall Growth Potential through Focused Companies
– New infrastructure company to focus on growing market opportunity in North
American infrastructure spending
– Trinity Industries to operate industry-leading integrated rail leasing,
manufacturing, and services business, providing single source for
comprehensive rail transportation solutions and services in North America
• Enables Each Company to Optimize Balance Sheet and Capital Allocation
Priorities
– Standalone companies plan to pursue distinct business strategies and
investment decisions best suited to enhance long-term growth and
shareholder value creation
• Enables Businesses to Advance Differentiated Investment Theses
15
Maintains Benefits of TrinityRail’s Integrated Structure
• The spin-off will preserve the TrinityRail integrated business model and its
expansive market platforms
• As the premier provider of rail products and services, offers an unparalleled value
proposition for customers
• Creates a “one-stop-shop” experience and a comprehensive range of railcar
services for industrial producers, railroads, lessors, and institutional investors
• Gives the ability to pursue an optimized capital structure, efficiently allocate
capital, and effectively leverage multiple rail platforms
16
Infrastructure Company Positioned for Success
• New growth-oriented company that is focused on infrastructure-related products
and services
• Businesses have leading positions in construction, energy, and marine markets
• Positioned to grow free cash flows
• Will have the balance sheet strength and capital allocation flexibility to pursue
growth through acquisitions
• Offers the ability to capitalize on the large and growing market opportunity in
North American infrastructure spending
III. Spin-off Timeline/ Execution Plan
17
Announcement
December 2017
Expected
Completion
Q4 2018
• Continued analysis and planning
• Refinement of new corporate and organizational structures
• Form 10 filing and SEC review process
• Organization preparation
• IRS private letter ruling on tax-free status of transaction
• Final approval by Board of Directors
• Distribution of SpinCo shares
Separation Progress Report (As of 2/22/18)
• Internal Separation Planning Teams identified and project plans defined
• CEO/CFO announcements of both companies
– Continued progress of reorganized senior management teams
• Internal refinement of business segment alignment under each
company
• Private letter ruling request filed with the IRS in early February
• Initial Form 10 filing expected in Q2-2018
18
19
Management Announcements-Post Spin (As of 2/22/18)
Management-Trinity Industries Management-Infrastructure Company
Current CEO/CFO to remain in place following the spin-off
Timothy R. Wallace, Trinity’s Chairman, Chief Executive Officer
and President, will remain in his current role with Trinity
following completion of the spin-off
⁻ Tim joined Trinity in 1975 and has been Chairman, Chief
Executive Officer, and President of Trinity since 1999
James Perry, Trinity’s Senior Vice President and Chief Financial
Officer, will remain in his current role with Trinity following
completion of the planned spin-off
⁻ Mr. Perry joined Trinity in 2004 and was appointed
Treasurer in April 2005. He was named a Vice President
of Trinity in 2006 and appointed Vice President, Finance
in 2007. Mr. Perry is in his eighth year as the Company’s
CFO
Antonio Carrillo has accepted the future role of President and
CEO of new Infrastructure Company
⁻ Since 2012, Mr. Carrillo has served as CEO of Mexichem
S.A.B. de C.V. Prior to joining Mexichem, Mr. Carrillo
spent 16 years at Trinity where he most recently served
as Senior Vice President and Group President of the
Company’s Energy Equipment Group and was
responsible for Trinity’s Mexico operations. In 2014, he
was elected to Trinity’s Board of Directors
Scott Beasley has accepted the future role of CFO of the new
Infrastructure Company
⁻ Mr. Beasley is currently the Group Chief Financial Officer
of Trinity’s Construction, Energy, Marine and
Components businesses, and has served in this role since
2017. Mr. Beasley joined the Company in 2014 and
previously served as Vice President of Corporate
Strategic Planning for Trinity Industries
The appointments of the CEO/CFO roles will help to provide
continuity for the new Infrastructure Company as the
preparation for separation proceeds
20
IV. Appendix
$895
$522
$1,275
$2,013
$2,868
$3,817
$4,462
$3,077
$2,084
-4.0%
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
24.0%
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
2009 2010 2011 2012 2013 2014 2015 2016 2017
Railcar Revenue Parts & Components Revenue OP Margin
Market Positioning
21
Rail Group
Business Conditions/Demand Outlook
Current Performance(4)
Rail Group Revenues and OP Margin(1)
Leading manufacturer of railcars, railcar axles, and coupling
devices in North America
Broadest product offering for railcar manufacturing in North
America
Networking of customers between railcar sales and railcar
leasing
Investment in maintenance services has expanded capabilities
for our lease fleet and key customers
Focus on new and advanced engineering designs
Centralized sourcing provides cost savings
Streamlined manufacturing efficiencies
FY 2017 deliveries and orders totaling 18,395 and 12,900 railcars,
respectively; represents 41% and 32% of FY 2017 industry deliveries and
orders, respectively
Trinity’s $2.2 billion order backlog of 22,585 railcars accounts for 39% of
industry backlog as of 12/17 and includes a broad mix of railcar types across
many industrial sectors
Remain encouraged by stabilizing industry fundamentals, continued
demand in select growth markets and improved forecast for industrial
production. Fourth quarter orders received of 3,180 railcars reflect a broad
mix of railcar types serving both replacement needs and select growth
markets
New railcar pricing showing sign of stabilization. The elevated number of
idle railcars and excess new railcar production, while improving, continue to
create headwinds
All Footnotes throughout the presentation are listed on Slide 28.
(2)
($mm)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000 Railcar Deliveries (1958 - 2020P)
Projections based on Third Party estimates(3)
$329
$461
$493
$529 $587
$632
$700 $701
$744
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
$0
$100
$200
$300
$400
$500
$600
$700
$800
2009 2010 2011 2012 2013 2014 2015 2016 2017
TILC Revenue Operations Margin PBT Margin
-
20,000
40,000
60,000
80,000
100,000
120,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Managed Fleet Wholly-Owned & Partially-Owned
Business Conditions/Demand Outlook
22
Market Positioning Current Performance
Leading provider of comprehensive railcar leasing and
management services
Provider of operating leases offering ‘one stop shopping’ for
TrinityRail shipping customers
Scale of operations facilitates active participation in secondary
market activities to create Railcar Investment Vehicles (“RIVs”)
and asset management services for institutional investors
Total leased railcars under management was 114,050 as of
year end 2017, a 10% increase year-over-year
Solid financial performance during FY 2017 driven by lease fleet
growth, high fleet utilization, asset management advisory fees and
disciplined cost management initiatives
Sold $460 million of leased railcars in FY 2017, primarily through the
RIV platform, reflecting strong demand from institutional investors
Expect to continue growing the lease fleet in FY 2018. Rail Group
backlog included $830 million of railcars supported by lease
commitments with external customers as of 12/17. Anticipate
supplementing organic fleet growth with selected purchases of
leased railcars in the secondary market
Renewal terms and rates have improved from recent levels. In
certain markets, however, lease rates remain below expiring levels
Leasing Operating Revenues and Profit (Excludes Car Sales)(3)
All Footnotes throughout the presentation are listed on Slide 28.
(1) (2)
More Than Tripled the Size of Trinity’s Owned
and Managed Lease Fleet since 2006
($mm)
Railcar Leasing & Management Services Group
$281
$354
$453
$484
$525
$552 $533 $523 $505
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
$0
$100
$200
$300
$400
$500
$600
2009 2010 2011 2012 2013 2014 2015 2016 2017
Highway Products Aggregates Other OP Margin
23
Business Conditions/Demand Outlook
Market Positioning Current Performance
Construction Products Group Revenues and OP Margin(1)
Leading U.S. manufacturer of highway guardrail, crash
cushions, and other protective barriers
Leading producer and distributor of lightweight and
natural construction aggregates in certain regions in the
United States
Diversified exposure to commercial, residential, industrial,
and highway markets
Demand tied to the North American infrastructure build
out and federal funding
Revenues declined in FY 2017, reflecting lower volumes in the
highway products and construction aggregates businesses, partially
offset by increased acquisition-related volume in the trench shoring
business
Operating margin, while down year-over-year, remains above recent
historical levels and reflects the repositioning of the business
portfolio to align with more consistent demand drivers
During FY 2017, completed $63 million in acquisitions, expanding our
trench shoring manufacturing platform and acquiring the assets of
two lightweight aggregates businesses
Since 2013, exited the concrete and galvanizing businesses, entered
and expanded the lightweight aggregates and trench shoring products
businesses, and continued to invest in the Company’s natural
aggregates platform
Anticipate the infrastructure plan proposed by President
Trump will be a positive tailwind for needed infrastructure
investment throughout the U.S.
Fixing America’s Surface Transportation ACT (FAST), passed
in December 2015, authorized a $305 billion five-year
funding bill for highways and other related transit programs,
providing much needed stability for public agencies charged
with planning transportation projects
Strong demand for aggregates in the southwestern U.S.
market due to residential and non-residential investment
All Footnotes throughout the presentation are listed on Slide 28.
(2)
($mm)
Construction Products Group
$510
$420
$473
$559
$ 665
$992
$1,114
$1,013
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
$0
$200
$400
$600
$800
$1,000
$1,200
2009 2010 2011 2012 2013 2014 2015 2016 2017
Wind Tower and Utility Structures Revenues Other Revenues OP Margin
$975
24
Business Conditions/Demand Outlook
Market Positioning Current Performance
Energy Equipment Group Revenues and OP Margin
Leading manufacturer of wind towers, steel utility
structures, storage and distribution containers in North
America
Manufacturer of tank heads for pressure and non-pressure
vessels, cryogenic equipment used to store and transport
liquefied gases as well as oil and gas processing equipment
Structural Wind Towers:
Backlog of $781 million as of 12/17 provides solid visibility and
stable production into 2020
Received structural wind tower orders of $1.2 billion in FY 2016,
including a $940 million multi-year order that commenced
deliveries in 2017
Total Business Segment:
Operating Profit declined in FY 2017 compared to FY 2016
reflecting mixed demand conditions for the end markets the
Group serves
Five-year spending bill passed by the federal government in
December 2015 included a tax incentive for wind power energy
through 2019; the multi-year incentive provides developers the
necessary stable planning environment to develop wind
projects
Current demand levels and production visibility for utility
structures continue to improve; long-term demand
fundamentals remain positive as future growth in investment
spending, especially connecting renewable energy to the grid, is
expected
The storage container industry is highly competitive and
experiencing pricing pressure from current market conditions;
long-term demand fundamentals are positive given the
significant investment by chemical companies along the Gulf
($mm)
Energy Equipment Group
$527
$422
$549
$675
$577
$639 $653
$403
$158
0.0%
3.0%
6.0%
9.0%
12.0%
15.0%
18.0%
21.0%
24.0%
$0
$100
$200
$300
$400
$500
$600
$700
$800
2009 2010 2011 2012 2013 2014 2015 2016 2017
Revenues OP Margin
Business Conditions/Demand Outlook
Market Positioning Current Performance
Inland Barge Group Revenues and OP Margin
Leading manufacturer of inland barges and fiberglass barge
covers in the United States
Multiple barge manufacturing facilities on inland waterways
enable rapid delivery
Operating flexibility is a key differentiator
Barge transportation has a cost advantage in high-cost fuel
environments
Revenues and profit down significantly again in FY 2017
versus recent historic levels due to a substantial decline in
barge deliveries and weak pricing environment
Backlog at December 31, 2017 was $98.2 million compared
to $120.0 million in 2016
Investments made over the past decade have enhanced
production flexibility positioning the barge business to
respond effectively as market demand changes
Continue to remain focused on reducing costs in 2018 as the
business is expected to produce break-even profit
Weak market conditions persist. An oversupply of inland barges in
North America continues to create headwinds, although utilization
levels for our customers appear to be improving. First quarter 2018
inquiries have been encouraging thus far
Replacement demand driver (as of 12/31/16):(4)
3,409 out of 18,897 hopper barges, or approximately 18.0%, are
greater than 20 years old
867 out of 3,683 tank barges, or approximately 23.5%, are greater
than 20 years old
From 2000 to 2015, the industry had a build-to-scrap ratio of 0.9x; in
2016 the ratio was 1.8x
All Footnotes throughout the presentation are listed on Slide 28.
25
(1) (2) (3)
($mm)
Inland Barge Group
26
Reconciliation of EBITDA (1)(2) (in millions)
“EBITDA” is defined as income (loss) from continuing operations plus interest expense, income taxes, and depreciation and amortization
including goodwill impairment charges. EBITDA is not a calculation based on generally accepted accounting principles. The amounts
included in the EBITDA calculation, however, are derived from amounts included in the historical statements of operations data. In
addition, EBITDA should not be considered as an alternative to net income or operating income as an indicator of our operating
performance, or as an alternative to operating cash flows as a measure of liquidity. We believe EBITDA assists investors in comparing a
company’s performance on a consistent basis without regard to depreciation and amortization, which can vary significantly depending
upon many factors. However, the EBITDA measure presented in this presentation may not always be comparable to similarly titled
measures by other companies due to differences in the components of the calculation.
(1) EBITDA for previous years has been adjusted as a result of the divestiture of the Company’s Concrete business
(2) Includes results of operations related to TRIP starting January 1, 2010
2009 2010 2011 2012 2013 2014 2015 2016 2017
Income (loss) from continuing operations ($140.8) $69.4 $146.8 $251.9 $386.1 $709.3 $826.0 $364.7 $713.6
Add:
Interest expense 123.1 182.1 185.3 194.7 187.3 193.4 194.7 181.9 184.0
Provision/(Benefit) for income taxes (11.5) 37.3 92.2 134.0 204.4 354.8 426.0 202.1 (341.6)
Depreciation & amortization expense 147.1 180.9 187.7 193.7 211.5 244.6 266.4 283.0 295.4
Goodwill impairment 325.0 - - - - - - - -
Earnings from continuing operations
before interest expense, income
taxes, and depreciation and
amortization expense $442.9 $469.7 $612.0 $774.3 $989.3 $1,502.1 $1,713.1 $1,031.7 $851.4
27
Reconciliation of PBT Margin –
Railcar Leasing and Management Services Group
(in millions except for PBT Margin)
2009 2010 2011 2012 2013 2014 2015 2016 2017
From Leasing Operations:
Revenue 329$ 461$ 493$ 529$ 587$ 632$ 700$ 701$ 744$
Operating Profit 129$ 200$ 225$ 243$ 267$ 288$ 331$ 313$ 341$
Less: Interest Expense (80) (139) (161) (174) (157) (153) (139) (125) (126)
Profit Before Tax (PBT) 48$ 62$ 64$ 68$ 110$ 135$ 192$ 188$ 215$
PBT Margin 15% 13% 13% 13% 19% 21% 27% 27% 29%
Slide 4
(1) Intersegment Revenues are eliminated and Leasing Revenues include revenues related to TRIP Holdings beginning in FY 2010; CPG Revenues for prior years have also been adjusted as a result of the
divestiture of its Concrete business in March 2013
(2) FY 2009 EPS excludes a $325 million pretax Goodwill impairment amounting to $1.57 per share; reported FY 2009 EPS was $(0.91)
(3) FY 2017 EPS excludes a $476 million non-cash tax benefit related to the effects of the Tax Cuts and Jobs Act and $14 million of spin-off related transaction costs amounting to $3.06 per share and $0.06 per
share, respectively; reported FY 2017 EPS was $4.52
Slide 6
(1) Operating Profit Excludes All Other, Corporate and is reduced by Leasing Interest Expense of $7 million in FY 2000 and $125.8 million in FY 2017
(2) Rail percentage represents Operating Profit less all Intersegment Company Eliminations; Leasing percentage represents Operating Profit less Leasing Interest Expense
(3) FY 2009 EPS excludes a $325 million pretax Goodwill impairment amounting to $1.57 per share; reported FY 2009 EPS was $(0.91)
(4) FY 2017 EPS excludes a $476 million non-cash tax benefit related to the effects of the Tax Cuts and Jobs Act and $14 million of spin-off related transaction costs amounting to $3.06 per share and $0.06 per
share, respectively; reported FY 2017 EPS was $4.52
Slide 9
(1) Excludes unamortized discount and/or unamortized debt issuance costs
(2) Leasing railcar equipment has a net book value of $6.0 billion, excluding deferred profit and including partially-owned subsidiaries
Slide 10
(1) FY 2017 vs FY 2016, all numbers on a Continuing Operations basis except for EPS, which reflects Total Company EPS
(2) Operating Profit includes Leasing Interest Expense
(3) EPS is for Total Company, including Discontinued Operations
(4) Excludes $325mm pre-tax impact of impairment of Goodwill amounting to $1.57 per share; reported FY 2009 EPS was $(0.91)
(5) Beginning in FY 2010, TRIP Holdings Revenues and Operating Profit were consolidated with the Leasing Group
(6) FY 2017 EPS excludes a $476 million non-cash tax benefit related to the effects of the Tax Cuts and Jobs Act and $14 million of spin-off related transaction costs amounting to $3.06 per share and $0.06 per
share, respectively; reported FY 2017 EPS was $4.52
(7) See Note in Appendix pg. 26 for Reconciliation of EBITDA; EBITDA for previous years has been adjusted as a result of the divestiture of the Company’s Concrete business
Slide 21
(1) Before eliminations for Intersegment Sales to Leasing and Intercompany Profit
(2) Excludes $325mm pretax charge for impairment of Goodwill; reported FY 2009 operating loss margin was 39.8%
(3) Sources: Historical data as reported per the Railway Supply Institute. 2017-2020 projections are an average of estimates provided by Global Insight (12/17) and Economic Planning Associates, Inc. (01/18)
and are provided as a point of reference
(4) Source: Industry total as reported per the Railway Supply Institute’s American Railway Car Institute Committee (ARCI)
Slide 22
(1) Includes TRIP Holdings starting in 2007
(2) Includes Partially-Owned Subsidiaries
(3) Operations Margin calculated using only revenues and profit from Leasing Operations including Partially Owned Subsidiaries and excludes Car Sales; PBT Margin calculated using Operating Profit from
Leasing Operations less Leasing Interest Expense; See Appendix pg. 27
Slide 23
(1) Revenues and OP Margin in prior years have been adjusted as a result of the divestiture of the Concrete business in March 2013
(2) Acquired Quixote Corporation in February 2010 which increased Highway Products revenue by 31% during 2010
Slide 25
(1) OP Margin excludes a $5.1mm net gain due to flood-related insurance settlements; reported OP margin 16.3%
(2) OP Margin excludes a $15.5 mm net gain due to flood-related insurance settlements; reported OP margin 19.4%
(3) OP Margin excludes a $3.8 mm net gain due to flood-related insurance settlements and the sale of leased barges; reported OP margin 18.5%
(4) Informa Economics (03/2017)
28
Footnotes
