UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): | February 15, 2012 |
Trinity Industries, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)
Delaware | 1-6903 | 75-0225040 |
_____________________ (State or other jurisdiction |
_____________ (Commission |
______________ (I.R.S. Employer |
of incorporation) | File Number) | Identification No.) |
2525 Stemmons Freeway, Dallas, Texas | 75207-2401 | |
_________________________________ (Address of principal executive offices) |
___________ (Zip Code) |
Registrants telephone number, including area code: | 214-631-4420 |
Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
The Registrant hereby furnishes the information set forth in its News Release, dated February 15, 2012, announcing operating results for the three and twelve month periods ended December 31, 2011, a copy of which is furnished as exhibit 99.1 and incorporated herein by reference. On February 16, 2012, the Registrant held a conference call and web cast with respect to its financial results for the three and twelve month periods ended December 31, 2011. The conference call scripts of Gail M. Peck, Vice President and Treasurer; Timothy R. Wallace, Chairman, Chief Executive Officer, and President; D. Stephen Menzies, Senior Vice President and Group President of the Rail and Railcar Leasing Groups; Antonio Carrillo, Senior Vice President and Group President of the Energy Equipment Group; William A. McWhirter II, Senior Vice President and Group President of the Construction Products and Inland Barge Groups and James E. Perry, Senior Vice President and Chief Financial Officer are furnished as exhibits 99.2, 99.3, 99.4, 99.5, 99.6 and 99.7, respectively, and incorporated herein by reference.
This information is not "filed" pursuant to the Securities Exchange Act of 1934 and is not incorporated by reference into any Securities Act of 1933 registration statements. Additionally, the submission of the report on Form 8-K is not an admission of the materiality of any information in this report that is required to be disclosed solely by Regulation FD.
Item 7.01 Regulation FD Disclosure.
See "Item 2.02 — Results of Operations and Financial Condition."
This information is not "filed" pursuant to the Securities Exchange Act of 1934 and is not incorporated by reference into any Securities Act of 1933 registration statements. Additionally, the submission of the report on Form 8-K is not an admission of the materiality of any information in this report that is required to be disclosed solely by Regulation FD.
Item 9.01 Financial Statements and Exhibits.
(a) - (c) Not applicable.
(d) Exhibits:
Exhibit No. / Description
99.1 News Release dated February 15, 2012 with respect to the operating results for the three and twelve month periods ended December 31, 2011.
99.2 Conference call script of February 16, 2012 of Gail M. Peck, Vice President and Treasurer.
99.3 Conference call script of February 16, 2012 of Timothy R. Wallace, Chairman, Chief Executive Officer, and President.
99.4 Conference call script of February 16, 2012 of D. Stephen Menzies, Senior Vice President and Group President of the Rail and Railcar Leasing Groups.
99.5 Conference call script of February 16, 2012 of Antonio Carrillo, Senior Vice President and Group President of the Energy Equipment Group.
99.6 Conference call script of February 16, 2012 of William A. McWhirter II, Senior Vice President and Group President of the Construction Products and Inland Barge Groups.
99.7 Conference call script of February 16, 2012 of James E. Perry, Senior Vice President and Chief Financial Officer.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Trinity Industries, Inc. | ||||
February 16, 2012 | By: |
James E. Perry
|
||
|
||||
Name: James E. Perry | ||||
Title: Senior Vice President and Chief Financial Officer |
Exhibit Index
Exhibit No. | Description | |
|
|
|
99.1
|
News Release dated February 15, 2012 with respect to the operating results for the three and twelve month periods ended December 31, 2011 | |
99.2
|
Conference call script of February 16, 2012 of Gail M. Peck, Vice President and Treasurer. | |
99.3
|
Conference call script of February 16, 2012 of Timothy R. Wallace, Chairman, Chief Executive Officer, and President. | |
99.4
|
Conference call script of February 16, 2012 of D. Stephen Menzies, Senior Vice President and Group President of the Rail and Railcar Leasing Groups. | |
99.5
|
Conference call script of February 16, 2012 of Antonio Carrillo, Senior Vice President and Group President of the Energy Equipment Group. | |
99.6
|
Conference call script of February 16, 2012 of William A. McWhirter II, Senior Vice President and Group President of the Construction Products and Inland Barge Groups. | |
99.7
|
Conference call script of February 16, 2012 of James E. Perry, Senior Vice President and Chief Financial Officer. |
Exhibit 99.1
NEWS RELEASE
Investor Contact:
Jessica Greiner
Director of Investor Relations
Trinity Industries, Inc.
214/631-4420
FOR IMMEDIATE RELEASE
Trinity Industries, Inc. Reports Strong Fourth Quarter and Full Year Results
DALLAS February 15, 2012 Trinity Industries, Inc. (NYSE:TRN) today reported net income attributable to Trinitys stockholders of $56.1 million, or $0.70 per common diluted share for the fourth quarter ended December 31, 2011. Trinitys results are reflective of higher deliveries of railcars and tank barges and an increased level of railcar sales from the leasing portfolio. Included in the results for the fourth quarter of 2011 was a pre-tax gain of $17.0 million, or $0.14 per common diluted share, related to the final settlement for the disposition of insured property, plant, and equipment damaged by a flood at Trinitys Missouri barge manufacturing facility in May 2011. Net income for the same quarter of 2010 was $17.3 million, or $0.22 per common diluted share. Results for the fourth quarter of 2010 included a pre-tax charge of $5.9 million, or $0.04 per common diluted share, related to the redemption of the Companys senior notes.
Revenues for the fourth quarter of 2011 were $941.5 million compared to revenues of $636.0 million for the same quarter of 2010. The Company reported an operating profit of $139.0 million in the fourth quarter of 2011, a 72% increase compared to an operating profit of $81.0 million for the same quarter last year.
For the year ended December 31, 2011, the Company reported net income attributable to Trinitys stockholders of $142.2 million, or $1.77 per common diluted share. Full year results included a cumulative pre-tax gain of $15.5 million net of insurance deductibles, or $0.12 per common diluted share, related to the May 2011 flood in Missouri and a separate flood event in May 2010 at another barge manufacturing facility in Tennessee. In 2010, the Company reported net income of $67.4 million, or $0.85 per common diluted share. Revenues for the year ended December 31, 2011 were $3.1 billion, a 43% increase compared to revenues of $2.2 billion in 2010.
Our companies are responding well as economic conditions change, said Timothy R. Wallace, Trinitys Chairman, CEO and President. We continue to see consistent demand for railcars that resulted in a $2.1 billion increase in order backlog during 2011 for our railcar manufacturing companies. Our Rail Group achieved operating leverage associated with higher shipment volumes during the fourth quarter, while our Railcar Leasing and Management Services Group was successful in selling railcars from its lease fleet due to strong secondary market demand. I am pleased with the ability of our Inland Barge Group to quickly recover from the effects of the Missouri flood and finalize the floods financial impact before the end of the year.
In the fourth quarter of 2011, the Rail Group reported revenues of $453.3 million and an operating profit of $34.4 million. This compares to revenues of $204.6 million and an operating profit of $8.8 million in the fourth quarter of 2010. The Rail Group shipped approximately 5,105 railcars and received orders for approximately 6,220 railcars during the fourth quarter. As of December 31, 2011, the Rail Group backlog grew to approximately $2.6 billion, representing approximately 29,000 railcars, compared to a backlog of approximately $2.4 billion as of September 30, 2011, representing approximately 27,885 railcars.
During the fourth quarter of 2011, the Railcar Leasing and Management Services Group reported leasing and management revenues of $127.5 million compared to $118.2 million of leasing and management revenues in the fourth quarter of 2010 due to continued growth in the lease fleet and higher lease rates. Operating profit for this group was $75.9 million for the fourth quarter of 2011 compared to operating profit of $56.7 million during the fourth quarter of 2010. Included in the operating results for the fourth quarter of 2011 were $18.4 million of profits from railcar sales. For the same period last year, the operating results included $2.3 million of profits from railcar sales.
The Inland Barge Group reported revenues of $149.6 million and an operating profit of $39.6 million in the fourth quarter of 2011, including a gain of $17.0 million related to the final settlement for the disposition of insured property, plant, and equipment damaged by the flood last May at its Missouri facility. This compares to revenues of $126.5 million and an operating profit of $16.8 million in the fourth quarter of 2010 which included a net loss of $1.2 million related to expenses incurred as a result of flood damage to the companys Tennessee barge facility in May of 2010. During the fourth quarter of 2011, the Inland Barge Group received approximately $80 million of orders, and as of December 31, 2011 had a backlog of approximately $495 million compared to a backlog of approximately $564 million as of September 30, 2011.
The Energy Equipment Group recorded revenues of $125.0 million in the fourth quarter of 2011 compared to revenues of $107.6 million in the same quarter of 2010. The group incurred an operating loss of $0.9 million in the fourth quarter of 2011 compared to an operating profit of $5.2 million in the fourth quarter of 2010. The decrease in operating profit for the three month period ended December 31, 2011 was due to transition issues arising from changes in product mix in the wind towers business, as well as competitive pricing on wind towers. The backlog for structural wind towers as of December 31, 2011 was approximately $934 million compared to approximately $930 million as of September 30, 2011. Approximately $412.5 million of this backlog is involved in litigation filed by the Company against one of our structural wind tower customers for breach of contract by failing to comply with the customers multi-year, contractual purchase obligations.
Revenues in the Construction Products Group were $142.4 million in the fourth quarter of 2011 compared to revenues of $129.1 million in the fourth quarter of 2010. The group recorded an operating profit of $11.2 million in the fourth quarter of 2011 compared to an operating profit of $6.7 million in the fourth quarter of 2010. The increase in revenues and profits for the three month period ended December 31, 2011 compared to the same period in 2010 was primarily attributable to higher volumes in the Highway Products business partially offset by lower shipments in the Concrete and Aggregates business due to the divestitures of several ready mix concrete facilities located in Central Texas in April 2011.
Earnings Outlook
The Company anticipates earnings per common diluted share of between $0.43 and $0.48 for the first
quarter of 2012 compared to earnings per common diluted share of $0.30 in the first quarter of
2011. For the full year 2012, the Company anticipates earnings per common diluted share of between
$2.35 and $2.55 compared to full year earnings per common diluted share of $1.77 in 2011.
Results for the first quarter and full year 2012 could be impacted by a number of factors, including: the level of operating leverage we achieve as our rail business operates at a relatively steady level of production; the impact of product mix changes in the wind towers business; additional prospective sales of railcars from the leasing portfolio; the amount of profit eliminations due to railcar additions to our Leasing Group; the impact of weather conditions on our Construction Products businesses; and the outcome of pending litigation in our wind towers business.
Conference Call
Trinity will hold a conference call at 11:00 a.m. Eastern on February 16, 2012 to discuss its
fourth quarter and full year results. To listen to the call, please visit the Investor Relations
section of the Trinity Industries website, www.trin.net. An audio replay may be accessed through
the Companys website or by dialing (402) 220-0120 until 11:59 p.m. Eastern on February 23, 2012.
Trinity Industries, Inc., headquartered in Dallas, Texas, is a multi-industry company that owns a variety of market-leading businesses which provide products and services to the industrial, energy, transportation, and construction sectors. Trinity reports its financial results in five principal business segments: the Rail Group, the Railcar Leasing and Management Services Group, the Inland Barge Group, the Construction Products Group, and the Energy Equipment Group. For more information, visit: www.trin.net.
Some statements in this release, 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 Trinitys estimates, expectations, beliefs, intentions or strategies for the future, and the assumptions underlying these forward-looking statements. Trinity uses the words anticipates, believes, estimates, expects, intends, forecasts, may, will, should, and similar expressions to identify these forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Forward-Looking Statements in the Companys Annual Report on Form 10-K for the most recent fiscal year.
- TABLES TO FOLLOW -
Trinity Industries, Inc.
Condensed Consolidated Income Statements
(in millions, except per share amounts)
(unaudited)
Three Months Ended December 31, | ||||||||
2011 | 2010 | |||||||
Revenues(1) |
$ | 941.5 | $ | 636.0 | ||||
Operating costs: |
||||||||
Cost of revenues |
779.6 | 513.4 | ||||||
Selling, engineering, and administrative expenses |
57.8 | 43.7 | ||||||
(Gain)/loss on disposition of property, plant, and
equipment: |
||||||||
Net gains on lease fleet sales(1) |
(13.1 | ) | (2.3 | ) | ||||
Disposition of flood damaged property |
(17.0 | ) | 0.5 | |||||
Other |
(4.8 | ) | (0.3 | ) | ||||
802.5 | 555.0 | |||||||
Operating profit |
139.0 | 81.0 | ||||||
Interest expense, net |
48.8 | 45.4 | ||||||
Other (income) expense |
(0.2 | ) | 5.7 | |||||
Income before income taxes |
90.4 | 29.9 | ||||||
Provision for income taxes |
33.5 | 11.4 | ||||||
Net income |
56.9 | 18.5 | ||||||
Net income attributable to noncontrolling interest |
0.8 | 1.2 | ||||||
Net income attributable to Trinity Industries, Inc. |
$ | 56.1 | $ | 17.3 | ||||
Net income attributable to Trinity Industries, Inc. per common share: |
||||||||
Basic |
$ | 0.70 | $ | 0.22 | ||||
Diluted |
$ | 0.70 | $ | 0.22 | ||||
Weighted average number of shares outstanding: |
||||||||
Basic |
77.7 | 77.0 | ||||||
Diluted |
77.9 | 77.2 |
(1) In the fourth quarter of 2011, the Company adopted the emerging industry policy of recognizing sales of railcars from the lease fleet which have been owned by the lease fleet for more than one year as a net gain or loss from the disposal of a long-term asset. Proceeds from the sales of railcars owned more than one year at the time of sale were $42.7 million and $16.0 million for the three months ended December 31, 2011 and 2010, respectively. There is no change in accounting treatment for sales of railcars from the lease fleet which have been owned by the lease fleet for one year or less which continue to be reported in revenues and cost of revenues. Operating profit from sales of railcars owned one year or less at the time of sale was $5.3 million and $ million for the three months ended December 31, 2011 and 2010, respectively. Prior year reported amounts have been reclassified to conform to this policy.
Trinity Industries, Inc.
Condensed Consolidated Income Statements
(in millions, except per share amounts)
(unaudited)
Year Ended December 31, | ||||||||
2011 | 2010 | |||||||
Revenues(1) |
$ | 3,075.1 | $ | 2,155.5 | ||||
Operating costs: |
||||||||
Cost of revenues |
2,482.9 | 1,689.6 | ||||||
Selling, engineering, and administrative expenses |
209.1 | 186.3 | ||||||
Gain on disposition of property, plant, and equipment: |
||||||||
Net gains on lease fleet sales(1) |
(16.2 | ) | (6.6 | ) | ||||
Disposition of flood damaged property |
(17.6 | ) | (9.7 | ) | ||||
Other |
(8.4 | ) | (7.9 | ) | ||||
2,649.8 | 1,851.7 | |||||||
Operating profit |
425.3 | 303.8 | ||||||
Interest expense, net |
183.8 | 180.7 | ||||||
Other (income) expense |
4.0 | 6.8 | ||||||
Income before income taxes |
237.5 | 116.3 | ||||||
Provision for income taxes |
91.8 | 40.9 | ||||||
Net income |
145.7 | 75.4 | ||||||
Net income attributable to noncontrolling interest |
3.5 | 8.0 | ||||||
Net income attributable to Trinity Industries, Inc. |
$ | 142.2 | $ | 67.4 | ||||
Net income attributable to Trinity Industries, Inc. per common share: |
||||||||
Basic |
$ | 1.77 | $ | 0.85 | ||||
Diluted |
$ | 1.77 | $ | 0.85 | ||||
Weighted average number of shares outstanding: |
||||||||
Basic |
77.5 | 76.8 | ||||||
Diluted |
77.8 | 77.0 |
(1) In the fourth quarter of 2011, the Company adopted the emerging industry policy of recognizing sales of railcars from the lease fleet which have been owned by the lease fleet for more than one year as a net gain or loss from the disposal of a long-term asset. Proceeds from the sales of railcars owned more than one year at the time of sale were $60.6 million and $33.6 million for the years ended December 31, 2011 and 2010, respectively. There is no change in accounting treatment for sales of railcars from the lease fleet which have been owned by the lease fleet for one year or less which continue to be reported in revenues and cost of revenues. Operating profit from sales of railcars owned one year or less at the time of sale was $13.2 million and $0.2 million for the years ended December 31, 2011 and 2010, respectively. Prior year reported amounts have been reclassified to conform to this policy.
Trinity Industries, Inc.
Condensed Segment Data
(in millions)
(unaudited)
Three Months Ended December 31, | ||||||||
Revenues: | 2011 | 2010 | ||||||
Rail Group |
$ | 453.3 | $ | 204.6 | ||||
Construction Products Group |
142.4 | 129.1 | ||||||
Inland Barge Group |
149.6 | 126.5 | ||||||
Energy Equipment Group |
125.0 | 107.6 | ||||||
Railcar Leasing and Management Services |
156.6 | 119.2 | ||||||
Group(1) |
||||||||
All Other |
16.4 | 14.0 | ||||||
Eliminations lease subsidiary |
(72.7 | ) | (43.3 | ) | ||||
Eliminations other |
(29.1 | ) | (21.7 | ) | ||||
Consolidated Total |
$ | 941.5 | $ | 636.0 | ||||
Operating profit (loss): | Three Months Ended December 31, | |||||||
2011 | 2010 | |||||||
Rail Group |
$ | 34.4 | $ | 8.8 | ||||
Construction Products Group |
11.2 | 6.7 | ||||||
Inland Barge Group |
39.6 | 16.8 | ||||||
Energy Equipment Group |
(0.9 | ) | 5.2 | |||||
Railcar Leasing and Management Services |
75.9 | 56.7 | ||||||
Group(1) |
||||||||
All Other |
(3.0 | ) | (5.4 | ) | ||||
Corporate |
(13.0 | ) | (5.2 | ) | ||||
Eliminations lease subsidiary |
(5.0 | ) | (2.0 | ) | ||||
Eliminations other |
(0.2 | ) | (0.6 | ) | ||||
Consolidated Total |
$ | 139.0 | $ | 81.0 | ||||
(1) In the fourth quarter of 2011, the Company adopted the emerging industry policy of recognizing sales of railcars from the lease fleet which have been owned by the lease fleet for more than one year as a net gain or loss from the disposal of a long-term asset. There is no change in accounting treatment for sales of railcars from the lease fleet which have been owned by the lease fleet for one year or less which continue to be reported in revenues and cost of revenues. Prior year reported amounts have been reclassified to conform to this policy.
Trinity Industries, Inc.
Condensed Segment Data
(in millions)
(unaudited)
Year Ended December 31, | ||||||||
Revenues: | 2011 | 2010 | ||||||
Rail Group |
$ | 1,274.7 | $ | 522.1 | ||||
Construction Products Group |
590.1 | 578.8 | ||||||
Inland Barge Group |
548.5 | 422.3 | ||||||
Energy Equipment Group |
472.8 | 419.6 | ||||||
Railcar Leasing and Management Services Group(1) |
552.0 | 464.5 | ||||||
All Other |
61.8 | 48.5 | ||||||
Eliminations lease subsidiary |
(325.5 | ) | (216.8 | ) | ||||
Eliminations other |
(99.3 | ) | (83.5 | ) | ||||
Consolidated Total |
$ | 3,075.1 | $ | 2,155.5 | ||||
Operating profit (loss): | Year Ended December 31, | |||||||
2011 | 2010 | |||||||
Rail Group |
$ | 77.3 | $ | 1.5 | ||||
Construction Products Group |
53.4 | 47.4 | ||||||
Inland Barge Group |
106.4 | 69.0 | ||||||
Energy Equipment Group |
8.9 | 35.1 | ||||||
Railcar Leasing and Management Services |
254.5 | 207.0 | ||||||
Group(1) |
||||||||
All Other |
(3.8 | ) | (11.4 | ) | ||||
Corporate |
(43.6 | ) | (33.8 | ) | ||||
Eliminations lease subsidiary |
(28.3 | ) | (8.4 | ) | ||||
Eliminations other |
0.5 | (2.6 | ) | |||||
Consolidated Total |
$ | 425.3 | $ | 303.8 | ||||
(1) In the fourth quarter of 2011, the Company adopted the emerging industry policy of recognizing sales of railcars from the lease fleet which have been owned by the lease fleet for more than one year as a net gain or loss from the disposal of a long-term asset. There is no change in accounting treatment for sales of railcars from the lease fleet which have been owned by the lease fleet for one year or less which continue to be reported in revenues and cost of revenues. Prior year reported amounts have been reclassified to conform to this policy.
Trinity Industries, Inc.
Condensed Consolidated Balance Sheets
(in millions)
(unaudited)
December 31, | December 31, | |||||||
2011 | 2010 | |||||||
Cash and cash equivalents |
$ | 351.1 | $ | 354.0 | ||||
Short-term marketable securities |
| 158.0 | ||||||
Receivables, net of allowance |
384.3 | 232.0 | ||||||
Income tax receivable |
1.6 | 7.4 | ||||||
Inventories |
549.9 | 331.3 | ||||||
Restricted cash |
240.3 | 207.1 | ||||||
Net property, plant, and equipment |
4,179.5 | 4,112.0 | ||||||
Goodwill |
225.9 | 197.6 | ||||||
Other assets |
188.4 | 160.6 | ||||||
$ | 6,121.0 | $ | 5,760.0 | |||||
Accounts payable |
$ | 207.4 | $ | 132.8 | ||||
Accrued liabilities |
421.3 | 375.6 | ||||||
Debt, net of unamortized discount of $99.8 and $111.1 |
2,974.9 | 2,907.7 | ||||||
Deferred income |
38.7 | 33.6 | ||||||
Deferred income taxes |
434.7 | 391.0 | ||||||
Other liabilities |
95.7 | 73.6 | ||||||
Stockholders equity |
1,948.3 | 1,845.7 | ||||||
$ | 6,121.0 | $ | 5,760.0 | |||||
Trinity Industries, Inc.
Additional Balance Sheet Information
(in millions)
(unaudited)
December 31, | December 31, 2010 | |||||||
2011 | ||||||||
Property, Plant, and Equipment |
||||||||
Corporate/Manufacturing: |
||||||||
Property, plant, and equipment |
$ | 1,242.8 | $ | 1,168.7 | ||||
Accumulated depreciation |
(732.8 | ) | (677.3 | ) | ||||
510.0 | 491.4 | |||||||
Leasing: |
||||||||
Wholly-owned subsidiaries: |
||||||||
Machinery and other |
9.6 | 38.2 | ||||||
Equipment on lease |
3,429.3 | 3,249.8 | ||||||
Accumulated depreciation |
(372.9 | ) | (322.6 | ) | ||||
3,066.0 | 2,965.4 | |||||||
TRIP Holdings: |
||||||||
Equipment on lease |
1,257.7 | 1,282.1 | ||||||
Accumulated depreciation |
(122.7 | ) | (90.3 | ) | ||||
1,135.0 | 1,191.8 | |||||||
Net deferred profit on railcars sold
to the Leasing Group: |
||||||||
Sold to wholly-owned subsidiaries |
(344.5 | ) | (340.4 | ) | ||||
Sold to TRIP Holdings |
(187.0 | ) | (196.2 | ) | ||||
(531.5 | ) | (536.6 | ) | |||||
$ | 4,179.5 | $ | 4,112.0 | |||||
Leasing portfolio information: |
||||||||
Portfolio size (number of railcars): |
||||||||
Wholly-owned subsidiaries |
54,595 | 51,910 | ||||||
TRIP Holdings |
14,350 | 14,700 | ||||||
Total fleet |
68,945 | 66,610 | ||||||
Portfolio utilization: |
||||||||
Wholly-owned subsidiaries |
99.3 | % | 99.3 | % | ||||
TRIP Holdings |
99.9 | % | 99.9 | % | ||||
Total fleet |
99.5 | % | 99.4 | % |
Trinity Industries, Inc.
Additional Balance Sheet Information
(in millions)
(unaudited)
December 31, | December 31, | |||||||
2011 | 2010 | |||||||
Debt |
||||||||
Corporate/Manufacturing Recourse: |
||||||||
Revolving credit facility |
$ | | $ | | ||||
Convertible subordinated notes |
450.0 | 450.0 | ||||||
Less: unamortized discount |
(99.8 | ) | (111.1 | ) | ||||
350.2 | 338.9 | |||||||
Other |
4.2 | 2.8 | ||||||
354.4 | 341.7 | |||||||
Leasing: |
||||||||
Wholly-owned subsidiaries: |
||||||||
Recourse: |
||||||||
Capital lease obligations |
48.6 | 51.2 | ||||||
Term loan |
54.7 | 57.4 | ||||||
103.3 | 108.6 | |||||||
Non-recourse: |
||||||||
Secured railcar equipment notes |
842.0 | 879.5 | ||||||
Warehouse facility |
308.5 | 80.2 | ||||||
Promissory notes |
465.5 | 493.8 | ||||||
1,616.0 | 1,453.5 | |||||||
TRIP Holdings Non-recourse: |
||||||||
Warehouse loan |
| 1,003.9 | ||||||
Senior secured notes |
170.0 | | ||||||
Less: Held by Trinity |
(108.8 | ) | | |||||
61.2 | | |||||||
Secured railcar equipment notes |
840.0 | | ||||||
901.2 | 1,003.9 | |||||||
$ | 2,974.9 | $ | 2,907.7 | |||||
Trinity Industries, Inc.
Additional Balance Sheet Information
(in millions)
(unaudited)
December 31, | December 31, | |||||||
2011 | 2010 | |||||||
Leasing Debt Summary |
||||||||
Total Recourse Debt |
$ | 103.3 | $ | 108.6 | ||||
Total Non-Recourse Debt (1) |
2,517.2 | 2,457.4 | ||||||
$ | 2,620.5 | $ | 2,566.0 | |||||
Total Leasing Debt |
||||||||
Wholly-owned subsidiaries |
$ | 1,719.3 | $ | 1,562.1 | ||||
TRIP Holdings(1) |
901.2 | 1,003.9 | ||||||
$ | 2,620.5 | $ | 2,566.0 | |||||
Equipment on Lease(2) |
||||||||
Wholly-owned subsidiaries |
$ | 3,066.0 | $ | 2,965.4 | ||||
TRIP Holdings |
1,135.0 | 1,191.8 | ||||||
$ | 4,201.0 | $ | 4,157.2 | |||||
Total Leasing Debt as a % of Equipment on Lease |
||||||||
Wholly-owned subsidiaries |
56.1 | % | 52.7 | % | ||||
TRIP Holdings |
79.4 | % | 84.2 | % | ||||
Combined |
62.4 | % | 61.7 | % | ||||
(1) Excludes $108.8 million in TRIP Holdings Senior Secured Notes owned by Trinity and |
||||||||
eliminated in consolidation. |
||||||||
(2) Excludes net deferred profit on railcars sold to the Leasing Group |
Trinity Industries, Inc.
Earnings per Share Calculation
(in millions, except per share amounts)
(unaudited)
Basic net income attributable to Trinity Industries, Inc. per common share is computed by dividing net income attributable to Trinity remaining after allocation to unvested restricted shares by the weighted average number of basic common shares outstanding for the period.
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
December 31, 2011 | December 31, 2010 | |||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Income (Loss) | Average Shares | EPS | Income (Loss) | Shares | EPS | |||||||||||||||||||
Net income attributable to Trinity
Industries, Inc. |
$ | 56.1 | $ | 17.3 | ||||||||||||||||||||
Unvested restricted share participation |
(1.8 | ) | (0.6 | ) | ||||||||||||||||||||
Net income attributable to Trinity
Industries, Inc. basic |
54.3 | 77.7 | $ | 0.70 | 16.7 | 77.0 | $ | 0.22 | ||||||||||||||||
Effect of dilutive securities: |
||||||||||||||||||||||||
Stock options |
| 0.2 | | 0.2 | ||||||||||||||||||||
Net income attributable to Trinity
Industries, Inc. diluted |
$ | 54.3 | 77.9 | $ | 0.70 | $ | 16.7 | 77.2 | $ | 0.22 | ||||||||||||||
Year Ended | Year Ended | |||||||||||||||||||||||
December 31, 2011 | December 31, 2010 | |||||||||||||||||||||||
Average | ||||||||||||||||||||||||
Income (Loss) | Average Shares | EPS | Income (Loss) | Shares | EPS | |||||||||||||||||||
Net income attributable to Trinity
Industries, Inc. |
$ | 142.2 | $ | 67.4 | ||||||||||||||||||||
Unvested restricted share participation |
(4.8 | ) | (2.3 | ) | ||||||||||||||||||||
Net income attributable to Trinity
Industries, Inc. basic |
137.4 | 77.5 | $ | 1.77 | 65.1 | 76.8 | $ | 0.85 | ||||||||||||||||
Effect of dilutive securities: |
||||||||||||||||||||||||
Stock options |
| 0.3 | | 0.2 | ||||||||||||||||||||
Net income attributable to Trinity
Industries, Inc. diluted |
$ | 137.4 | 77.8 | $ | 1.77 | $ | 65.1 | 77.0 | $ | 0.85 | ||||||||||||||
Trinity Industries, Inc.
Reconciliation of EBITDA
(in millions)
(unaudited)
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 companys 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 press release may not always be comparable to similarly titled measures by other companies due to differences in the components of the calculation.
Three Months Ended December 31, | ||||||||
2011 | 2010 | |||||||
Net income |
$ | 56.9 | $ | 18.5 | ||||
Add: |
||||||||
Interest expense |
49.1 | 45.8 | ||||||
Provision for income taxes |
33.5 | 11.4 | ||||||
Depreciation and amortization expense |
48.6 | 46.3 | ||||||
Earnings before interest expense, income
taxes, and depreciation and
amortization expense |
$ | 188.1 | $ | 122.0 | ||||
Year Ended December 31, | ||||||||
2011 | 2010 | |||||||
Net income |
$ | 145.7 | $ | 75.4 | ||||
Add: |
||||||||
Interest expense |
185.3 | 182.1 | ||||||
Provision for income taxes |
91.8 | 40.9 | ||||||
Depreciation and amortization expense |
192.9 | 189.6 | ||||||
Earnings before interest expense, income
taxes, and depreciation and amortization
expense |
$ | 615.7 | $ | 488.0 | ||||
-END -
Exhibit 99.2
Trinity Industries, Inc.
Earnings Release Conference Call
Comments of Gail M. Peck
Vice President and Treasurer
February 16, 2012
Thank you, Josh. Good morning everyone. Welcome to the Trinity Industries fourth quarter 2011 results conference call. Im Gail Peck, Vice President and Treasurer of Trinity. Thank you for joining us today.
Following the introduction you will hear from Tim Wallace our Chairman, Chief Executive Officer and President. After Tim, our business group leaders will provide overviews of the businesses within their respective groups. Our speakers are:
| Steve Menzies, Senior Vice President and Group President of the Rail and Railcar Leasing Groups; |
| Antonio Carrillo, Senior Vice President and Group President of the Energy Equipment Group; and |
| Bill McWhirter, Senior Vice President and Group President of the Construction Products and Inland Barge Groups |
Following their comments, James Perry, our Senior Vice President and Chief Financial Officer, will provide the financial summary and guidance. We will then move to the Q&A session. Mary Henderson, our Vice President and Chief Accounting Officer, is also in the room with us today. I will now turn the call over to Tim Wallace for his comments.
Tim
Steve
Antonio
Bill
James
Q&A Session
That concludes todays conference call. A replay of this call will be available after one oclock eastern standard time today through midnight on February 23, 2012. The access number is (402) 220-0120. Also the replay will be available on the website located at www.trin.net. We look forward to visiting with you again on our next conference call. Thank you for joining us this morning.
Exhibit 99.3
Trinity Industries, Inc.
Earnings Release Conference Call
Comments of Tim Wallace
Chairman, Chief Executive Officer, and President
February 16, 2012
Thank you Gail, and good morning everyone.
I am pleased with the improvement in our financial performance during the 4th quarter. All of our business segments, with the exception of one, produced solid results.
2011 was a significant growth year for Trinity. Our businesses clearly demonstrated their ability to generate growth in specialized areas where demand was strong. I am very pleased with the way they worked together to leverage our existing manufacturing capacity to take advantage of growth opportunities.
During 2011, Trinitys annual revenue grew approximately 42%. If you extract the earnings
associated with the flood insurance claims settled during the year, our normalized EPS growth was
approximately 94% for the year.
As we begin 2012, I am very pleased with the positive momentum that is occurring within our
company. The operating environment is in place for our businesses to generate operating leverage
during 2012. Predicting operating leverage with precision is difficult because there are many
factors to consider.
Demand for railcars in North America remained consistent during the 4th quarter. Orders in our Rail Group again exceeded deliveries, resulting in backlog growth for the 8th consecutive quarter. Our railcar manufacturing businesses ability to achieve operating leverage during the 4th quarter was an accomplishment due to the steep rampup these businesses experienced during the quarter. Their current production footprint provides a nice platform for further improvements.
Our railcar leasing business has great momentum. Their commercial team continues to originate railcar leases with attractive lease terms that tie in nicely with existing production plans. Our leasing commercial team is also obtaining better terms for renewals on existing leasing equipment. Strong railcar demand has created an environment that is ideal for selling railcars from the lease fleet into the secondary market.
Our Inland Barge Group is also experiencing consistent demand. During the 4th quarter, our barge business settled insurance claims associated with the severe flooding last May at our barge facility in Missouri. I am very pleased with the speed with which this group recovered from the flood and resolved the associated financial issues.
Our construction products businesses are performing well in a challenging market environment. During the past few years, they completed several transactions that contributed to the improvement in their 4th quarter financial results. This group will continue to pursue additional ways to improve their financial performance despite sluggish U.S. demand.
Our Energy Equipment Group reported a small loss during the 4th quarter. The loss was primarily due to lingering issues associated with production line transitions and contract disputes in the wind tower business. This business recently filed a law suit over contract disputes with a major customer. The nature of the litigation prevents us from making assumptions on the final outcome.
I see a number of positive signs emerging from our wind tower manufacturing operations. We have a highly seasoned team focused on resolving the current challenges. It is always difficult to predict exactly when a business will completely overcome a complex challenge like the one our wind tower business currently faces. I anticipate that this business will be able to generate improvements during the next few quarters.
From an overall company point of view, I am pleased with our accomplishments during the fourth quarter and 2011 as a whole. I am optimistic about our outlook for 2012. Our backlog of orders in our major businesses provides opportunities for our businesses to generate operating leverage that builds additional positive momentum. Trinity is fortunate to have a highly-seasoned group of employees who know how to operate in a variety of conditions. Our overall performance and strength of our market leadership positions reflect the talents and hard work of our employees and our commitment to operational excellence.
I will now turn it over to Steve Menzies for his comments.
Exhibit 99.4
Trinity Industries, Inc.
Earnings Release Conference Call
Comments by Steve Menzies
Senior Vice President and Group President
Rail and Railcar Leasing Groups
February 16, 2012
Thank you, Tim, Good morning!
We are pleased with the 2011 operating results of the Rail and Leasing Groups and the operating momentum building in both business groups at year end. During 2011, our Rail Group increased production and operating profit each quarter enroute to producing over 14,000 railcars. During the 4th quarter, our Rail Group posted an operating profit of $34.4 million, a 90% increase over the 3rd quarter. Railcar shipments during the 4th quarter increased more than 41% when compared to the 3rd quarter. Our railcar order backlog increased for the eighth consecutive quarter and is at its highest level since the 4th quarter of 2007. During 2011, our Leasing Group experienced consistently strong fleet utilization and strengthening lease rates. During the 4th quarter of 2011, the Leasing Group posted a 34% increase in operating profit compared to the 4th quarter of 2010 due principally to higher lease renewal rates and profit from lease portfolio sales. Lease rate and renewal trends continued to remain favorable during the 4th quarter.
Industry demand for new railcars during 2011 outpaced general economic growth and was driven primarily by orders for railcars needed to transport crude oil from shale and tar sands fields, small covered hoppers for sand used in shale fracking operations and larger covered hoppers for minerals and agricultural products. In the long run, we believe demand for rail transportation to support crude oil transport and gas fracking will continue to generate additional new railcar orders. Near term, the current price and abundant supply levels of natural gas may negatively impact drilling thus reducing demand for frack sand and, therefore, small covered hoppers. This cycle is very characteristic of many new markets we serve. At current oil price levels, we expect oil drilling and the demand for railcars to transport crude oil will remain steady. The energy sector is an exciting new growth opportunity for rail and we are monitoring developments in these markets closely.
The abundance of low price natural gas is benefiting North American chemical producers. Several
major chemical companies have announced plans to build new plants or to significantly expand
existing facilities in North America. This indicates that domestic chemical production will likely
increase, driving demand for new railcars to transport chemical products. Orders for autoracks and
flat cars for autoracks were also placed during the quarter as automobile production is projected
to rise and the existing autorack fleet is fully deployed. Intermodal orders accounted for
approximately one fourth of industry orders during the 4th quarter, reflecting strength
in consumer shipments and a continued shift in rail equipment preferences. Demand for coal
carrying rail cars is weak while utilities take advantage of low priced natural gas for power
generation.
During the 4th quarter, TrinityRail received orders for approximately 6,220 new
railcars, including autoracks. Our 4th quarter orders were primarily for autoracks and
tank, flat and covered hopper railcars. Orders came from industrial shippers, railroads and third
party leasing companies. TrinityRails railcar order backlog was 29,000 railcars at the end of the
4th quarter up 4% from the end of the 3rd quarter. Approximately 24% of the
units in our order backlog are for customers of our leasing business.
We were successful at securing orders during the 4th quarter that extend current production lines well into 2012 and, for some railcar types, into 2013. We continue to focus on orders that optimize production at our facilities currently in operation, minimize line changeovers and reflect favorable pricing levels. Our 4th quarter orders should position us to achieve increased operating leverage.
We delivered approximately 5,105 railcars during the 4th quarter. This is an increase of approximately 41% from the 3rd quarter and compares most favorably with the approximately 2,230 railcars we delivered in the fourth quarter of 2010. The steep slope of our production ramp-up during the last four quarters has been challenging. We are now positioned to improve our operating leverage as our labor force is more experienced and we stabilize our railcar production rate during the next few quarters. For the year 2012, we are projecting delivery of approximately 18,000-20,000 new railcars. As a point of comparison, we delivered 14,065 railcars in 2011 and 4,750 railcars in 2010. We remain flexible in our 2012 production plan and are prepared to respond to further shifts in demand. We will continue to update you on our full year delivery projections as the year unfolds.
We added approximately 800 new railcars to our lease portfolio during the 4th quarter bringing our wholly-owned lease fleet to 54,595 railcars, a 5.2% increase compared to the 4th quarter 2010. Our lease fleet utilization at the end of the 4th quarter 2011 was 99.3% and our average remaining lease term remained at 3.5 years. The TRIP lease fleet totals 14,350 railcars operating at 99.9% utilization. As a reminder, Trinity owns 57% of TRIP and manages the portfolio.
Lease renewal trends are favorable. A high percentage of our lessees are renewing their contracts, which lowers remarketing expenses and minimizes out of service time. Renewal lease rates are also showing steady increases. Lease rates on new railcars are at attractive investment levels. We expect this trend to continue while existing railcars are in tight supply and new railcar production backlogs remain extended.
We have grown our lease fleet through the strong lease origination capabilities of our commercial team. We have also demonstrated our competencies to effectively remarket our lease portfolio as evidenced by our utilization and renewal trends. With the scale and diversification of our leasing footprint, we are now better positioned to more actively participate in the secondary market. We have seen an active secondary market for the purchase and sale of leased railcars during the last few quarters. Increased availability of capital for buyers is supporting the financing of these portfolio purchases. We have, over time, been successful at selling leased railcars from our portfolio. During the third quarter of 2011 we sold a group of leased railcars from our portfolio and we sold an additional group in the 4th quarter. We expect to continue lease portfolio sales during the next few quarters assuming market conditions continue to support an active and deep market of buyers.
In summary, railcar market conditions remain favorable although driven, in large part, by demand related to energy exploration and production. We are closely monitoring developments in the oil and gas markets to better understand factors that may influence future demand for railcars. During the 4th quarter, we reached the latter stages of our production ramp-up. As we enter 2012, we expect our operations team to focus on improving efficiencies while producing at a stable rate for the next few quarters. We expect to continue to see the benefits of a strong lease pricing environment and an active secondary market.
Ill now turn it over to Antonio.
Exhibit 99.5
Trinity Industries, Inc.
Earnings Release Conference Call
Comments by Antonio Carrillo
Senior Vice President and Group President
Energy Equipment Group
February 16, 2012
Thank you Steve, and good morning!
Since our last conference call, progress has been made towards resolving a number of challenges facing our wind tower business. We will provide only a small level of color about this business today due to pending litigation and contractual disputes that are still in the process of being resolved.
You will recall that to accommodate a customer, we transitioned last May from manufacturing 80-meter towers to manufacturing 100-meter towers. Since then, we have encountered a variety of issues related to this transition. During the 4th quarter, we made progress working through a number of these issues. One of our priorities has been to enhance our manufacturing flexibility so we can respond efficiently to customer needs. Weve made significant progress in this area and are currently in the process of transitioning back to 80-meter towers at some of our facilities under the terms of our original contracts.
In respect to contractual issues, we expect customers that have placed orders with us to fulfill their commitments. To the extent that customers require contractual modifications, and we can identify terms that are mutually acceptable to both parties, we will work towards a resolution. We are currently in the middle of discussions with customers about contract modifications. These discussions are moving slowly due to the complexity of the issues involved.
You may be aware that Trinity Structural Towers has joined a group of other U.S. wind tower manufacturers in a trade case against wind tower imports from China and Vietnam. For the past few years, U.S. wind tower manufacturers have seen what we believe are unfair pricing practices on the part of wind tower manufacturers in these countries. Last week, the International Trade Commission unanimously decided that there is enough evidence to support an investigation. We are closely monitoring developments in this case.
With respect to the other business lines within the Energy Equipment Group, I am pleased with the solid revenue increases we experienced throughout the year. Our businesses clearly demonstrated their ability to react to specialized demand to take advantage of growth opportunities.
I will now turn it over to Bill.
Exhibit 99.6
Trinity Industries, Inc.
Earnings Release Conference Call
Comments of William McWhirter
Senior Vice President and Group President
Construction Products and Inland Barge Groups
February 16, 2012
Thank you Antonio and good morning everyone.
Our Construction Products Group continued to perform well during the fourth quarter producing an operating profit of $11.2 million for the quarter compared to $6.7 million during the same quarter a year ago. This significant improvement in results is primarily due to two factors: relatively mild winter weather that has continued into 2012 and, to a larger extent, the success of our efforts in 2011 to reposition this segment. During 2011, we reduced our exposure to ready mix concrete while growing our highway products, construction aggregates, and galvanizing business lines. All of these business lines provide us the potential for higher margins with reduced market volatility compared with the ready-mix concrete business.
Looking forward into 2012, I see more opportunities to grow our higher margin businesses through acquisitions and continue our efforts to improve our overall returns within the Construction Products Group.
Moving to our Inland Barge group:
For the 4th quarter, our barge business had sales of $150 million and reported operating
profit of $39.6 million. $17.0 million of these operating profits were a one-time gain related to
the flood that occurred at our facility in May of 2011. The net result is a normalized profit of
$22.6 million for the 4th quarter, which compares with $18 million in the same quarter
of 2010.
Barge movement of petroleum products, chemicals and coal continues to be strong. During the quarter, we signed $80 million in new orders. Our barge backlog now stands at $495 million dollars at the quarters end. Market activity for new barges for 2012 and 2013 continues to be encouraging.
Overall, I am very pleased with the 2011 performance of both our Barge and Construction Products Groups. Our team of employees had an excellent year.
At this time, I will turn the presentation over to James.
Exhibit 99.7
Trinity Industries, Inc.
Earnings Release Conference Call
Comments of James E. Perry
Senior Vice President and Chief Financial Officer
February 16, 2012
Thank you Bill, and good morning everyone.
My comments relate primarily to the fourth quarter of 2011. We will file our form 10-K later today. For the fourth quarter of 2011, Trinity reported earnings of 70 cents per common diluted share. This compares to 22 cents per common diluted share in the fourth quarter of 2010.
Revenues for the fourth quarter of 2011 increased 48% to $942 million compared to $636 million of revenues in the same quarter last year, resulting from a higher level of railcar and tank barge deliveries, continued growth in our railcar leasing operations, and an increased level of railcar sales from the leasing portfolio.
Trinitys operating profit increased 72% during the fourth quarter to $139 million, and our EBITDA increased to $188 million from $122 million in the same quarter of 2010. The reconciliation of EBITDA was provided in our press release yesterday.
The results for the fourth quarter of 2011 include a pre-tax gain of $17 million, or $0.14 per common diluted share, related to the final settlement for the disposition of insured property, plant and equipment damaged by a flood at Trinitys Missouri barge manufacturing facility last May. The insurance claim related to the flood is now closed. As we mentioned on our last conference call, our earnings guidance for the fourth quarter did not include this gain.
Our fourth quarter 2010 results included a pre-tax charge of $6 million, or $0.04 per common diluted share, related to the redemption of the Companys senior notes.
For the total year 2011, our revenues increased 43% to $3.1 billion compared to $2.2 billion in 2010. Our earnings per common diluted share in 2011 were $1.77 compared to $0.85 in 2010. Our operating profit was $425 million in 2011 compared to $304 million in 2010, and our EBITDA totaled $616 million compared to $488 million in 2010. Full-year 2011 results included a cumulative pre-tax gain of $15.5 million, or $0.12 per common diluted share, related to the floods. On a full-year basis, one-time items reported in 2010 were not meaningful to results.
The Rail Group recorded revenues of $453 million in the fourth quarter, a 121% increase over the same quarter in 2010 on the strength of 5,105 railcar deliveries compared to 2,230 deliveries a year ago. The increase in deliveries reflects strong growth in demand during the last year and TrinityRails successful ramp up of production capacity to meet that demand. The Rail Groups operating profit for the quarter increased to $34 million compared to $9 million a year ago due to higher volume and operating leverage. For the total year 2011, our Rail Group delivered 14,065 railcars and generated revenue of $1.3 billion compared to deliveries of 4,750 railcars and revenues of $522 million in 2010.
During the fourth quarter, the Leasing Group reported revenues of $157 million and an operating profit of $76 million, including $18 million of gains from railcar sales from the leasing portfolio. This compares to revenues of $119 million and an operating profit of $57 million during the fourth quarter last year, including $2 million of gains from railcar sales. We mentioned on our last earnings conference call that selling railcars from the leasing portfolio is a common industry practice that is driven by market demand. Our lease fleet has grown to a size that enables us to pursue these opportunities when they align with our strategic goals for the portfolio, which include maximizing returns, diversifying the lease fleet, and managing our investment levels.
As we mentioned in our earnings release yesterday, and detail in our 10-K that will be filed today, during the fourth quarter we adopted an emerging industry practice for recognizing revenue from the sale of railcars from the lease fleet. For railcars owned by the leasing business for one year or less at the time of sale, sales are recognized on a gross basis as part of leasing revenues and cost of revenues. For the fourth quarter 2011, revenues included $29 million of car sales of this type. For railcars owned by the leasing business for more than one year at the time of sale, sales are recognized as net gains or losses from the disposal of long-term assets. Proceeds from car sales of this type totaled $43 million in the fourth quarter 2011 and are reported on the statement of cash flows in our 10K. Prior year balances have been reclassified to conform to this policy, the details of which will be made available in our 10-K. The adoption of this policy does not change operating profit in the current period or prior periods.
Our Inland Barge Group had another good quarter as it fully recovered from the flood of our Missouri facility. Reported revenues were $150 million for the fourth quarter compared to $127 million in the same quarter last year. The Groups operating profit, excluding one-time flood-related items in both periods, was $23 million compared to $18 million in the same quarter last year.
The Energy Equipment Group incurred an operating loss of $900,000 in the fourth quarter on revenues of $125 million. This compares to an operating profit of $5 million on revenues of $108 million last year. Revenues for the fourth quarter of this year increased compared to the same period last year as a result of higher shipments of tank containers and tank heads, partially offset by lower volumes of wind towers. The loss resulted from transition issues arising from changes in product mix in our wind towers business, as well as competitive pricing on wind towers. Last month, we filed litigation against a customer in our wind towers business for breach of contract resulting from their failure to comply with their multi-year obligations. We are unable to provide further comment at this time on that topic due to the ongoing litigation.
The Construction Products Group recorded fourth quarter revenues of $142 million and an operating profit of $11 million. This compares to revenues of $129 million and an operating profit of $7 million in the fourth quarter of 2010. This Group has continued to perform well in a challenging construction environment. The Group has made significant progress realigning its portfolio through a series of strategic acquisitions in the highway products space and asset repositioning within the concrete and aggregates business to align with demand.
In summary, this years fourth quarter results from our core operations, which exclude the gain from the flood settlement, are a substantial improvement over the same period last year.
At year-end, our balance of unrestricted cash totaled $351 million. When combined with available capacity under our corporate revolver and Trinitys leasing warehouse facility, we had more than $850 million of available liquidity at the end of the year which positions us to capitalize on business opportunities as they arise.
I will now discuss our forward-looking guidance.
For the first quarter of 2012, we expect earnings per common diluted share for the Company to be between 43 and 48 cents. For the full year, we expect earnings per common diluted share of between $2.35 and $2.55.
We anticipate that the Rail Group will report revenues of between $460 and $480 million during the first quarter with an operating margin of between 7% and 9%. We expect our railcar manufacturing companies to deliver railcars to our leasing company that will result in an elimination of between $120 and $140 million in consolidated revenues and between 9 and 10 cents of earnings per share in the first quarter. For the full year, we expect our net leasing capital expenditures to be between $300 and $350 million.
Included in our guidance for the first quarter is approximately 3 to 4 cents per share of gains from the sale of railcars from our lease fleet. Our annual guidance includes approximately 10 to 12 cents per share from car sale gains. Again, the level of railcar sale activity from the lease portfolio is difficult to accurately project given the opportunistic nature of the transactions and uncertainty about precise timing. The change in accounting policy does not impact the level of profit we have assumed in this guidance.
Inland Barge revenues are expected to be between $160 and $170 million in the first quarter with an operating margin in the range of 13% to 15%.
As Antonio mentioned, our Energy Equipment Group continues to conduct discussions with wind tower customers about mutually acceptable contract modifications. Our wind tower business is also focused on enhancing its ability to transition efficiently between wind tower models when customers product needs change. We are making progress in these areas, and we expect to see improvement in the Energy Equipment results within the next few quarters. However, we remain unable to provide detailed financial guidance until we have more clarity about the exact timing of these business developments.
We will continue to evaluate market conditions as we deploy capital to promote the growth of our businesses. Our current plan calls for an investment of $100 to $125 million of capital expenditures in our manufacturing businesses during 2012.
Our results for the first quarter and full-year of 2012 will depend on a number of factors, including: the level of operating leverage we achieve as our rail businesses operate at a relatively steady level of production; the impact of product mix changes in the wind towers business; additional prospective sales of railcars from the leasing portfolio; the amount of profit eliminations due to railcar additions to our Leasing Group; the impact of weather conditions on our Construction Products businesses; and the outcome of pending litigation in our wind towers business.
Our operator will now prepare us for the question and answer session.
Q&A Session