Date of Report (Date of Earliest Event Reported): | October 31, 2018 |
Delaware | 1-6903 | 75-0225040 | ||
(State or other jurisdiction of incorporation | (Commission File No.) | (I.R.S. Employer Identification No.) | ||
2525 N. Stemmons Freeway, Dallas, Texas | 75207-2401 | |||
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: | 214-631-4420 |
• | Unaudited Pro Forma Condensed Consolidated Statements of Operations of Trinity Industries, Inc. for the nine months ended September 30, 2018 and for each of the years ended December 31, 2017, 2016 and 2015. |
• | Unaudited Pro Forma Condensed Consolidated Balance Sheet of Trinity Industries, Inc. as of September 30, 2018. |
Exhibit No. | Description |
99.1 |
Trinity Industries, Inc. | ||
November 6, 2018 | By: | /s/ James E. Perry |
Name: James E. Perry | ||
Title: Senior Vice President and Chief Financial Officer |
Nine Months Ended September 30, 2018 | |||||||||||
Trinity Historical | Separation of Arcosa and Other Adjustments (a) | Pro Forma Trinity | |||||||||
(in millions, except per share amounts) | |||||||||||
Revenues | $ | 2,704.5 | $ | (930.5 | ) | (b) | $ | 1,774.0 | |||
Operating costs: | |||||||||||
Cost of revenues | 2,100.2 | (747.8 | ) | (b) | 1,352.4 | ||||||
Selling, engineering, and administrative expenses | 326.4 | (104.2 | ) | (c), (d) | 222.2 | ||||||
Losses (gains) on dispositions of property: | |||||||||||
Net gains on lease fleet sales | (21.0 | ) | — | (21.0 | ) | ||||||
Other | (4.1 | ) | 1.0 | (3.1 | ) | ||||||
2,401.5 | (851.0 | ) | 1,550.5 | ||||||||
Operating profit | 303.0 | (79.5 | ) | 223.5 | |||||||
Interest expense, net | 122.9 | 0.1 | 123.0 | ||||||||
Other, net | (1.4 | ) | (2.1 | ) | (3.5 | ) | |||||
Income from continuing operations before income taxes | 181.5 | (77.5 | ) | 104.0 | |||||||
Provision (benefit) for income taxes | 46.1 | (22.5 | ) | (e) | 23.6 | ||||||
Net income from continuing operations | 135.4 | (55.0 | ) | 80.4 | |||||||
Net income attributable to noncontrolling interest | 3.4 | — | 3.4 | ||||||||
Net income from continuing operations attributable to Trinity Industries, Inc. | $ | 132.0 | $ | (55.0 | ) | $ | 77.0 | ||||
Net income attributable to Trinity Industries, Inc. per common share: | |||||||||||
Basic | $ | 0.89 | $ | 0.52 | |||||||
Diluted | $ | 0.87 | $ | 0.51 | |||||||
Weighted average number of shares outstanding: | |||||||||||
Basic | 146.1 | 146.1 | |||||||||
Diluted | 148.8 | 148.8 |
Year Ended December 31, 2017 | |||||||||||
Trinity Historical | Separation of Arcosa and Other Adjustments (a) | Pro Forma Trinity | |||||||||
(in millions, except per share amounts) | |||||||||||
Revenues | $ | 3,662.8 | $ | (1,265.3 | ) | (b) | $ | 2,397.5 | |||
Operating costs: | |||||||||||
Cost of revenues | 2,745.5 | (971.7 | ) | (b) | 1,773.8 | ||||||
Selling, engineering, and administrative expenses | 454.8 | (116.0 | ) | (c), (d) | 338.8 | ||||||
Losses (gains) on dispositions of property: | |||||||||||
Net gains on lease fleet sales | (83.5 | ) | — | (83.5 | ) | ||||||
Other | (3.1 | ) | 1.4 | (1.7 | ) | ||||||
3,113.7 | (1,086.3 | ) | 2,027.4 | ||||||||
Operating profit | 549.1 | (179.0 | ) | 370.1 | |||||||
Interest expense, net | 173.4 | 0.1 | 173.5 | ||||||||
Other, net | 3.7 | (1.7 | ) | 2.0 | |||||||
Income from continuing operations before income taxes | 372.0 | (177.4 | ) | 194.6 | |||||||
Provision (benefit) for income taxes | (341.6 | ) | (69.7 | ) | (e) | (411.3 | ) | ||||
Net income from continuing operations | 713.6 | (107.7 | ) | 605.9 | |||||||
Net income attributable to noncontrolling interest | 11.1 | — | 11.1 | ||||||||
Net income from continuing operations attributable to Trinity Industries, Inc. | $ | 702.5 | $ | (107.7 | ) | $ | 594.8 | ||||
Net income attributable to Trinity Industries, Inc. per common share: | |||||||||||
Basic | $ | 4.62 | $ | 3.91 | |||||||
Diluted | $ | 4.52 | $ | 3.83 | |||||||
Weighted average number of shares outstanding: | |||||||||||
Basic | 148.6 | 148.6 | |||||||||
Diluted | 152.0 | 152.0 |
Year Ended December 31, 2016 | |||||||||||
Trinity Historical | Separation of Arcosa and Other Adjustments (a) | Pro Forma Trinity | |||||||||
(in millions, except per share amounts) | |||||||||||
Revenues | $ | 4,588.3 | $ | (1,498.5 | ) | (b) | $ | 3,089.8 | |||
Operating costs: | |||||||||||
Cost of revenues | 3,456.1 | (1,144.8 | ) | (b) | 2,311.3 | ||||||
Selling, engineering, and administrative expenses | 407.4 | (93.7 | ) | (c) | 313.7 | ||||||
Losses (gains) on dispositions of property: | |||||||||||
Net gains on lease fleet sales | (13.5 | ) | — | (13.5 | ) | ||||||
Other | (3.9 | ) | 0.8 | (3.1 | ) | ||||||
3,846.1 | (1,237.7 | ) | 2,608.4 | ||||||||
Operating profit | 742.2 | (260.8 | ) | 481.4 | |||||||
Interest expense, net | 176.5 | 0.1 | 176.6 | ||||||||
Other, net | (1.1 | ) | (3.7 | ) | (4.8 | ) | |||||
Income from continuing operations before income taxes | 566.8 | (257.2 | ) | 309.6 | |||||||
Provision (benefit) for income taxes | 202.1 | (97.2 | ) | (e) | 104.9 | ||||||
Net income from continuing operations | 364.7 | (160.0 | ) | 204.7 | |||||||
Net income attributable to noncontrolling interest | 21.1 | — | 21.1 | ||||||||
Net income from continuing operations attributable to Trinity Industries, Inc. | $ | 343.6 | $ | (160.0 | ) | $ | 183.6 | ||||
Net income attributable to Trinity Industries, Inc. per common share: | |||||||||||
Basic | $ | 2.25 | $ | 1.20 | |||||||
Diluted | $ | 2.25 | $ | 1.20 | |||||||
Weighted average number of shares outstanding: | |||||||||||
Basic | 148.4 | 148.4 | |||||||||
Diluted | 148.6 | 148.6 |
Year Ended December 31, 2015 | |||||||||||
Trinity Historical | Separation of Arcosa and Other Adjustments (a) | Pro Forma Trinity | |||||||||
(in millions, except per share amounts) | |||||||||||
Revenues | $ | 6,392.7 | $ | (1,790.5 | ) | (b) | $ | 4,602.2 | |||
Operating costs: | |||||||||||
Cost of revenues | 4,656.2 | (1,312.3 | ) | (b) | 3,343.9 | ||||||
Selling, engineering, and administrative expenses | 476.4 | (111.6 | ) | (c) | 364.8 | ||||||
Losses (gains) on dispositions of property: | |||||||||||
Net gains on lease fleet sales | (166.1 | ) | — | (166.1 | ) | ||||||
Other | (12.7 | ) | 3.2 | (9.5 | ) | ||||||
4,953.8 | (1,420.7 | ) | 3,533.1 | ||||||||
Operating profit | 1,438.9 | (369.8 | ) | 1,069.1 | |||||||
Interest expense, net | 192.5 | 0.1 | 192.6 | ||||||||
Other, net | (5.6 | ) | 1.3 | (4.3 | ) | ||||||
Income from continuing operations before income taxes | 1,252.0 | (371.2 | ) | 880.8 | |||||||
Provision (benefit) for income taxes | 426.0 | (129.5 | ) | (e) | 296.5 | ||||||
Net income from continuing operations | 826.0 | (241.7 | ) | 584.3 | |||||||
Net income attributable to noncontrolling interest | 29.5 | — | 29.5 | ||||||||
Net income from continuing operations attributable to Trinity Industries, Inc. | $ | 796.5 | $ | (241.7 | ) | $ | 554.8 | ||||
Net income attributable to Trinity Industries, Inc. per common share: | |||||||||||
Basic | $ | 5.14 | $ | 3.58 | |||||||
Diluted | $ | 5.08 | $ | 3.54 | |||||||
Weighted average number of shares outstanding: | |||||||||||
Basic | 150.2 | 150.2 | |||||||||
Diluted | 152.2 | 152.2 |
September 30, 2018 | |||||||||||
Trinity Historical | Separation of Arcosa and Other Adjustments (f) | Pro Forma Trinity | |||||||||
(in millions) | |||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 427.4 | $ | (210.4 | ) | (g) | $ | 217.0 | |||
Receivables, net of allowance | 396.2 | (174.7 | ) | 221.5 | |||||||
Income tax receivable | 46.3 | (4.9 | ) | 41.4 | |||||||
Inventories | 707.0 | (225.8 | ) | 481.2 | |||||||
Restricted cash | 138.5 | 138.5 | |||||||||
Net property, plant, and equipment | 6,538.0 | (570.5 | ) | 5,967.5 | |||||||
Goodwill | 787.8 | (579.0 | ) | (h) | 208.8 | ||||||
Other assets | 363.8 | (103.1 | ) | (i) | 260.7 | ||||||
$ | 9,405.0 | $ | (1,868.4 | ) | $ | 7,536.6 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Accounts payable | $ | 219.5 | $ | (60.9 | ) | $ | 158.6 | ||||
Accrued liabilities | 411.0 | (88.5 | ) | (i) | 322.5 | ||||||
Debt | 3,275.7 | (0.4 | ) | 3,275.3 | |||||||
Deferred income | 18.4 | 18.4 | |||||||||
Deferred income taxes | 755.9 | (41.1 | ) | 714.8 | |||||||
Other liabilities | 85.1 | (25.6 | ) | (i) | 59.5 | ||||||
Stockholders’ equity: | |||||||||||
Trinity Industries, Inc. | 4,288.3 | (1,651.9 | ) | (j) | 2,636.4 | ||||||
Noncontrolling interest | 351.1 | 351.1 | |||||||||
4,639.4 | (1,651.9 | ) | 2,987.5 | ||||||||
$ | 9,405.0 | $ | (1,868.4 | ) | $ | 7,536.6 |
(a) | The adjustment reflects the removal of the operations of Arcosa as a result of the Separation and also includes certain other adjustments as described elsewhere within these notes. |
(b) | Includes adjustments for intercompany transactions that, prior to the Separation, were eliminated in consolidation but which will be treated as third-party transactions subsequent to the Separation. |
(c) | The adjustment includes general corporate overhead costs which were historically allocated to Arcosa but which will be allocated to the Company’s continuing operations for the periods presented as such costs do not meet the requirements to be presented in discontinued operations. |
(d) | Includes the removal of all nonrecurring Separation costs which were incurred and included in the Company’s historical results of operations for the nine months ended September 30, 2018 and the year ended December 31, 2017. These costs were primarily related to investment banker fees, legal fees, third-party consulting and contractor fees and other incremental costs directly related to Separation-related activities that are not expected to have a continuing impact on the Company’s results of operations following the completion of the Separation. |
(e) | Includes the tax impact of the Separation adjustments and other adjustments needed to reflect Trinity's pro forma net income from continuing operations. In determining the tax rate to apply to the Separation adjustments, the Company used the applicable statutory income tax rates in effect in the respective tax jurisdictions during the periods presented. |
(f) | The adjustment reflects the removal of assets and liabilities attributable to Arcosa and includes certain other adjustments as described elsewhere within these notes. |
(g) | The adjustment includes the contribution of approximately $200.0 million of cash from Trinity to Arcosa in connection with the Separation. |
(h) | The adjustment reflects the removal of goodwill attributable to Arcosa, which was estimated based on a relative fair value approach in accordance with Accounting Standards Codification Topic 350. |
(i) | The adjustment also includes the impact of certain employee-related balances and amounts associated with former Trinity Directors transferring to the Arcosa Board of Directors that were transferred between the Company and Arcosa upon Separation. |
(j) | The adjustment reflects the net effect of the pro forma adjustments to assets and liabilities described above. |
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