-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, MU63q4Zf6jlS82kMVC9ZpJdnNKzUXcS0ErM3t7nCWfXvmcOtyB3ZvtgjVUjgBtS2 rt60iLLv5kqNVG4Oqh7clA== 0000099780-95-000002.txt : 19950515 0000099780-95-000002.hdr.sgml : 19950515 ACCESSION NUMBER: 0000099780-95-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950213 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRINITY INDUSTRIES INC CENTRAL INDEX KEY: 0000099780 STANDARD INDUSTRIAL CLASSIFICATION: RAILROAD EQUIPMENT [3743] IRS NUMBER: 750225040 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-06903 FILM NUMBER: 95509020 BUSINESS ADDRESS: STREET 1: 2525 STEMMONS FREEWAY CITY: DALLAS STATE: TX ZIP: 75207-2401 BUSINESS PHONE: 2146314420 FORMER COMPANY: FORMER CONFORMED NAME: TRINITY STEEL CO INC DATE OF NAME CHANGE: 19720407 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 1994 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-6903 TRINITY INDUSTRIES, INC. (Exact name of Registrant as specified in its charter) Incorporated Under the Laws 75-0225040 of the State of Delaware (I.R.S. Employer Identification No.) 2525 Stemmons Freeway Dallas, Texas 75207-2401 (Address of Principal (Zip Code) Executive Offices) Registrant's Telephone Number, Including Area Code (214) 631-4420 Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes X No 40,208,736 (Number of shares of common stock outstanding as of December 31, 1994) Part I Item 1 - Financial Statements Trinity Industries, Inc. Consolidated Balance Sheet (unaudited) (in millions except per share data) December 31 March 31 Assets 1994 1994 Cash and cash equivalents . . . . . . . . . $ 2.4 $ 8.7 Receivables . . . . . . . . . . . . . . . . 274.0 264.9 Inventories: Finished goods. . . . . . . . . . . . . . 26.4 28.2 Work in process . . . . . . . . . . . . . 121.3 119.0 Raw material and supplies . . . . . . . . 200.4 181.6 Total inventories 348.1 328.8 Property, plant and equipment, at cost: Excluding Leasing Subsidiary. . . . . . . 678.5 590.8 Leasing Subsidiary. . . . . . . . . . . . 456.7 479.2 Less accumulated depreciation: Excluding Leasing Subsidiary. . . . . . . (295.8) (263.0) Leasing Subsidiary. . . . . . . . . . . . (135.3) (139.9) Other assets. . . . . . . . . . . . . . . . 42.1 37.3 $1,370.7 $1,306.8 Liabilities and Stockholders' Equity Short-term debt . . . . . . . . . . . . . . $ 199.0 $ 192.0 Accounts payable and accrued liabilities. . 206.0 161.6 Billings in excess of cost and related earnings. . . . . . . . . . . . . . . . . 8.2 12.6 Long-term debt: Excluding Leasing Subsidiary. . . . . . . 38.5 41.9 Leasing Subsidiary. . . . . . . . . . . . 207.3 236.0 Deferred income taxes . . . . . . . . . . . 69.4 73.9 Other liabilities . . . . . . . . . . . . . 19.4 18.3 747.8 736.3 Stockholders' equity: Common stock - par value $1 per share; authorized 100.0 shares; shares issued and outstanding at December 31, 1994 - 40.2 and March 31, 1994 - 39.7 . . . . . 40.2 39.7 Capital in excess of par value. . . . . . 222.3 213.4 Retained earnings . . . . . . . . . . . . 360.4 317.4 622.9 570.5 $1,370.7 $1,306.8 Trinity Industries, Inc. Consolidated Income Statement (unaudited) (in millions except per share data) Nine Months Ended December 31 1994 1993 Revenues. . . . . . . . . . . . . . . . . . . . . . $1,676.7 $1,332.2 Operating costs: Cost of revenues. . . . . . . . . . . . . . . . . 1,462.7 1,147.1 Selling, engineering and administrative expenses. 77.5 69.6 Interest expense of Leasing Subsidiary. . . . . . 16.1 18.0 Retirement plans expense. . . . . . . . . . . . . 8.5 6.8 1,564.8 1,241.5 Operating profit. . . . . . . . . . . . . . . . . . 111.9 90.7 Other (income) expenses: Interest income . . . . . . . . . . . . . . . . . (0.5) (1.4) Interest expense - excluding Leasing Subsidiary . 8.2 3.7 Other, net. . . . . . . . . . . . . . . . . . . . (0.7) (1.1) 7.0 1.2 Income before income taxes and cumulative effect of change in accounting for income taxes . . . . . 104.9 89.5 Provision (benefit) for income taxes: Current . . . . . . . . . . . . . . . . . . . . . 44.6 29.1 Deferred. . . . . . . . . . . . . . . . . . . . . (3.1) 5.2 Effect of statutory rate increase . . . . . . . . - 2.1 41.5 36.4 Income before cumulative effect of change in accounting for income taxes. . . . . . . . . . . . 63.4 53.1 Cumulative effect as of April 1, 1993 of change in accounting for income taxes . . . . . . . . . . - 7.9 Net income. . . . . . . . . . . . . . . . . . . . . $ 63.4 $ 61.0 Income per common and common equivalent share before cumulative effect of change in accounting for income taxes . . . . . . . . . . . . . . . . . $ 1.57 $ 1.32 Cumulative effect of change in accounting for income taxes . . . . . . . . . . . . . . . . . . . - 0.20 Net income per common and common equivalent share . $ 1.57 $ 1.52 Weighted average number of common and common equivalent shares outstanding. . . . . . . . . . . 40.5 40.2 Trinity Industries, Inc. Consolidated Income Statement (unaudited) (in millions except per share data) Three Months Ended December 30 1994 1993 Revenues. . . . . . . . . . . . . . . . . . . . . . $576.9 $466.4 Operating costs: Cost of revenues. . . . . . . . . . . . . . . . . 501.7 403.3 Selling, engineering and administrative expenses. 26.7 24.7 Interest expense of Leasing Subsidiary. . . . . . 4.9 5.9 Retirement plans expense. . . . . . . . . . . . . 3.0 2.4 536.3 436.3 Operating profit. . . . . . . . . . . . . . . . . . 40.6 30.1 Other (income) expenses: Interest income . . . . . . . . . . . . . . . . . (0.2) (0.7) Interest expense - excluding Leasing Subsidiary . 3.2 1.4 Other, net. . . . . . . . . . . . . . . . . . . . - (0.5) 3.0 0.2 Income before income taxes. . . . . . . . . . . . . 37.6 29.9 Provision (benefit) for income taxes: Current . . . . . . . . . . . . . . . . . . . . . 18.0 10.2 Deferred. . . . . . . . . . . . . . . . . . . . . (3.1) 1.2 14.9 11.4 Net income. . . . . . . . . . . . . . . . . . . . . $ 22.7 $ 18.5 Net income per common and common equivalent share . $ 0.56 $ 0.46 Weighted average number of common and common equivalent shares outstanding. . . . . . . . . . . 40.6 40.2 Trinity Industries, Inc. Consolidated Statement of Cash Flows (unaudited) (in millions) Nine Months Ended December 31 1994 1993 Cash flows from operating activities: Net income . . . . . . . . . . . . . . . . . . . . $ 63.4 $ 61.0 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation: Excluding Leasing Subsidiary. . . . . . . . . . 37.6 29.5 Leasing Subsidiary. . . . . . . . . . . . . . . 12.2 14.2 Deferred provision (benefit) for income taxes. . (3.1) 5.2 Gain on sale of property, plant and equipment. . (0.2) (0.1) Cumulative effect of change in accounting for income taxes. . . . . . . . . . . . . . . . . . - (7.9) Effect of statutory tax rate increase. . . . . . - 2.1 Other. . . . . . . . . . . . . . . . . . . . . . (4.4) (0.5) Changes in assets and liabilities: Decrease in receivables . . . . . . . . . . . . - 0.2 Increase in inventories . . . . . . . . . . . . (11.4) (40.6) Increase in other assets . . . . . . . . . . . (3.3) (7.4) Increase (decrease) in accounts payable and accrued liabilities. . . . . . . . . . . . 41.5 (26.1) Decrease in billings in excess of cost and related earnings . . . . . . . . . . . . . . . (4.4) (19.0) Increase in other liabilities . . . . . . . . . 1.2 2.5 Total adjustments . . . . . . . . . . . . . . 65.7 (47.9) Net cash provided by operating activities . . . . 129.1 13.1 Cash flows from investing activities: Proceeds from sale of property, plant and equipment . . . . . . . . . . . . . . . . . . 26.8 14.6 Capital expenditures: Excluding Leasing Subsidiary. . . . . . . . . . . (45.3) (29.9) Leasing Subsidiary. . . . . . . . . . . . . . . . (15.1) (27.0) Payment for purchase of acquisitions, net of cash acquired. . . . . . . . . . . . . . . (57.5) (31.5) Cash of acquired subsidiary. . . . . . . . . . . . 2.4 0.1 Net cash required by investing activities. . . . (88.7) (73.7) Cash flows from financing activities: Issuance of common stock . . . . . . . . . . . . . 0.7 8.5 Net borrowings under short-term debt . . . . . . . 7.0 77.0 Proceeds from issuance of long-term debt . . . . . - 20.0 Payments to retire long-term debt. . . . . . . . . (34.1) (29.8) Dividends paid . . . . . . . . . . . . . . . . . . (20.3) (17.2) Net cash provided (required) by financing activities. . . . . . . . . . . . . . (46.7) 58.5 Net decrease in cash and cash equivalents . . . . . (6.3) (2.1) Cash and cash equivalents at beginning of year. . . 8.7 7.5 Cash and cash equivalents at end of period. . . . . $ 2.4 $ 5.4 Trinity Industries, Inc. Consolidated Statement of Stockholders' Equity (unaudited) (in millions except share and per share data)
Common Capital Common Stock in Total Shares $1.00 Excess Stock- (100,000,000 Par of Par Retained holders' Authorized) Value Value Earnings Equity Balance at March 31, 1993 . . . . 26,076,549 $26.1 $214.5 $266.7 $507.3 Three-for-two stock split. . . . 13,158,164 13.2 (13.2) - - Other. . . . . . . . . . . . . . 400,434 0.3 9.3 - 9.6 Net income . . . . . . . . . . . - - - 61.0 61.0 Cash dividends ($0.4733 per share) . . . . . . - - - (18.8) (18.8) Balance at December 31, 1993. . . 39,635,147 $39.6 $210.6 $308.9 $559.1 Balance at March 31, 1994 . . . . 39,711,698 $39.7 $213.4 $317.4 $570.5 Other. . . . . . . . . . . . . . 497,038 0.5 8.9 - 9.4 Net income . . . . . . . . . . . - - - 63.4 63.4 Cash dividends ($0.51 per share) . . . . . . - - - (20.4) (20.4) Balance at December 31, 1994. . . 40,208,736 $40.2 $222.3 $360.4 $622.9
The foregoing consolidated financial statements are unaudited and have been prepared from the books and records of the Registrant. In the opinion of the Registrant, all adjustments, consisting only of normal and recurring adjustments necessary to a fair presentation of the financial position of the Registrant as of December 31, 1994 and March 31, 1994, the results of operations for the nine and three month periods ended December 31, 1994 and 1993 and cash flows for the nine month periods ended December 31, 1994 and 1993, in conformity with generally accepted accounting principles, have been made. Trinity Industries, Inc. Notes to Consolidated Financial Statements December 31, 1994 Income Taxes Effective April 1, 1993, Trinity adopted Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes." This Statement required a change from the deferred to the liability method of computing income taxes. As permitted by Statement No. 109, Trinity elected not to restate the financial statements of any prior period. The effect of the change on pretax income for the period ended December 31, 1993 is not material. The cumulative effect of applying the change in accounting method is a decrease in Trinity's deferred tax liability and a nonrecurring credit of $7.9 million or $0.20 earnings per share. The components of deferred liabilities and assets at April 1, 1993 follow: (in millions) Deferred tax liabilities: Excess of tax depreciation over financial statement depreciation. . . . . . . $ 94.1 Total deferred tax liabilities . . . . . . 94.1 Deferred tax assets: Profits on long-term contracts recorded on the percentage of completion method for financial purposes and related items. . . . . . . . . . (0.8) Pensions and other benefits. . . . . . . . . . (16.8) Accounts receivable and inventory valuation. . (0.4) Other. . . . . . . . . . . . . . . . . . . . . (2.8) Total deferred tax assets. . . . . . . . . (20.8) Net deferred tax liabilities . . . . . . . $ 73.3 Item 2 - Management's Discussion and Analysis of Consolidated Financial Condition and Statement of Operations FINANCIAL CONDITION The increase in 'Property, plant and equipment, at cost: Excluding Leasing Subsidiary' at December 31, 1994 compared to March 31, 1994 is due principally to certain acquisitions in the Construction Products, Marine Products, and Metal Components segments. Statement of Operations Nine Months Ended December 31, 1994 vs. Nine Months Ended December 31, 1993 'Revenues' increased in the current nine month period compared to the same period of a year ago due primarily to increased business in the Railcars segment. Marine Products, Construction Products and Containers segments 'Revenues' recorded moderate increases in the current period. Leasing segment 'Revenues' increased due to the sales of selected car types previously for lease. 'Revenues' for the Metal Components segment were approximately the same for both periods. Strong replacement demand and fundamental economic expansion of railroad traffic are stimulating the production of railcars and related products. This demand is expected to continue as railcars on order at the end of the current period are up 60% from railcars on order a year ago. A similar replacement market for marine products and construction products is anticipated as the economy grows stronger. 'Revenues' in the Containers segment increased due primarily to higher demand for LPG containers caused by improvement in the residential housing industry. The increase in 'Operating profit' in the current period is principally due to improved results from the Railcars segment. Leasing segment 'Operating profit' is higher due to sale of selected car types previously for lease. Three Months Ended December 31, 1994 vs. Three Months Ended December 31, 1993 'Revenues' are higher for the current quarter compared to the same quarter from a year ago due to increased business in the Railcars, Construction Products and Leasing segments. 'Operating profit' is greater in the current quarter due primarily to improved results in the Railcars and Leasing segments. Part II Item 6 - Exhibits and Reports on Form 8-K. (a) Exhibits Exhibit Number Description 27 Financial Data Schedule (b) No Form 8-K was filed during the quarter. Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Trinity Industries, Inc. By: /S/ F. Dean Phelps F. Dean Phelps Vice President February 10, 1995 Index to Exhibit NO. DESCRIPTION PAGE 27 Financial Data Schedule * Notice: Exhibit 27, Financial Data Schedule, is filed pursuant to the requirements of Regulation S-T as it relates to electronic filings through the EDGAR System. While this exhibit has been included in the electronic filing of this Form 10-Q to the Securities and Exchange Commission, it is not included in the printed reproduction. The Financial Data Schedule sets forth specific financial information easily obtained from the financial statements, schedules and other disclosure requirements from the Registrant's filed report form. The purpose of the Financial Data Schedule is the identification of specific information in a manner that permits the data to be readily identified and extracted by the electronic system. EX-27 2
5 9-MOS MAR-31-1995 DEC-31-1994 2400000 0 274000000 0 348100000 0 1135200000 431100000 1370700000 0 0 40200000 0 0 0 1370700000 0 1676700000 0 1564800000 7000000 0 0 104900000 41500000 63400000 0 0 0 63400000 1.57 0
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