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, 1995
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 1-8099
TRINITY INDUSTRIES LEASING COMPANY
(Exact name of registrant as specified in its charter)
Incorporated Under the Laws 75-1640393
of the State of Delaware (I.R.S. Employer
Identification No.)
2000 Gardner Expressway
Quincy, IL 62306
(Address of Principal (Zip Code)
Executive Offices)
Registrant's Telephone Number,
Including Area Code (217) 224-7236
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
1,000
(Number of shares of common stock outstanding as of December 31, 1995)
Part I
Item I - Financial Statements
Trinity Industries Leasing Company
Balance Sheet
(unaudited)
(in millions except share data)
December 31 March 31
1995 1995
Assets
Cash and cash equivalents. . . . . . . . . $ 1.3 $ 0.2
Note receivable from Trinity . . . . . . . 138.1 129.9
Equipment on lease (predominantly
long-term), at cost. . . . . . . . . . . 391.1 431.0
Less accumulated depreciation. . . . . . . (78.2) (95.4)
Other assets . . . . . . . . . . . . . . . 6.4 6.2
$458.7 $471.9
Liabilities and Stockholder's Equity
Accounts payable and accrued liabilities . $ 11.6 $ 8.9
Long-term debt . . . . . . . . . . . . . . 171.0 205.2
Deferred federal income tax. . . . . . . . 81.4 78.3
Other liabilities. . . . . . . . . . . . . 2.6 3.8
266.6 296.2
Stockholder's equity:
Common stock $1 par; authorized 10,000
shares; issued 1,000 shares . . . . . - -
Capital in excess of par value . . . . 19.3 19.3
Retained earnings . . . . . . . . . . . 172.8 156.4
192.1 175.7
$458.7 $471.9
Trinity Industries Leasing Company
Statements of Income
and Retained Earnings
(unaudited)
(in millions)
Nine Months
Ended December 31
1995 1994
Revenues . . . . . . . . . . . . . . . . . $104.6 $ 87.7
Operating costs:
Cost of revenues. . . . . . . . . . . . . 74.4 53.8
Interest expense. . . . . . . . . . . . . 13.5 16.1
87.9 69.9
Operating profit . . . . . . . . . . . . . 16.7 17.8
Other income:
Interest income (including $8.4
and $5.4 from Trinity in 1995
and 1994, respectively). . . . . . . . . 8.4 5.4
Other, net. . . . . . . . . . . . . . . . 0.1 0.1
8.5 5.5
Income before income taxes . . . . . . . . 25.2 23.3
Provision (benefit) for income taxes:
Current. . . . . . . . . . . . . . . . . 5.7 11.3
Deferred . . . . . . . . . . . . . . . . 3.1 (3.1)
8.8 8.2
Net income . . . . . . . . . . . . . . . . 16.4 15.1
Retained earnings at beginning of year . . 156.4 135.6
Retained earnings at end of period . . . . $172.8 $150.7
<PAGE>
Trinity Industries Leasing Company
Statements of Income
and Retained Earnings
(unaudited)
(in millions)
Three Months
Ended December 31
1995 1994
Revenues . . . . . . . . . . . . . . . . . $ 24.4 $ 35.7
Operating costs:
Cost of revenues. . . . . . . . . . . . . 15.6 22.2
Interest expense. . . . . . . . . . . . . 4.3 4.9
19.9 27.1
Operating profit . . . . . . . . . . . . . 4.5 8.6
Other income:
Interest income (including $3.0
and $2.1 from Trinity in 1995
and 1994, respectively). . . . . . . . . 3.0 2.1
Other, net. . . . . . . . . . . . . . . . - -
3.0 2.1
Income before income taxes . . . . . . . . 7.5 10.7
Provision (benefit) for income taxes:
Current. . . . . . . . . . . . . . . . . 1.3 5.8
Deferred . . . . . . . . . . . . . . . . 1.3 (2.0)
2.6 3.8
Net income . . . . . . . . . . . . . . . . 4.9 6.9
Retained earnings at beginning of period . 167.9 143.8
Retained earnings at end of period . . . . $172.8 $150.7
<PAGE>
Trinity Industries Leasing Company
Statement Of Cash Flows
(unaudited)
(in millions)
Nine Months
Ended December 31
1995 1994
Cash flows from operating activities:
Net income. . . . . . . . . . . . . . . . $16.4 $15.1
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation. . . . . . . . . . . . . . 13.7 15.4
Deferred provision for federal income
tax. . . . . . . . . . . . . . . . . . 3.1 (3.1)
Gain on retirement of equipment . . . . (6.6) (5.6)
Other . . . . . . . . . . . . . . . . . 0.9 0.8
Changes in assets and liabilities:
(Increase) decrease in other asset . . (0.2) 1.6
Increase in accounts payable
and accrued liabilities . . . . . . . 2.6 11.7
Decrease in other liabilities . . . . (1.2) (1.5)
Total adjustments . . . . . . . . . . 12.3 19.3
Net cash provided by operating
activities . . . . . . . . . . . . . . 28.7 34.4
Cash flows from investing activities:
Proceeds from retirement of equipment . . 61.2 25.6
Capital expenditures. . . . . . . . . . . (46.5) (15.1)
Net cash provided by investing
activities . . . . . . . . . . . . . . 14.7 10.5
Cash flows from financing activities:
Increase in note receivable
from Trinity . . . . . . . . . . . . . . (8.1) (16.2)
Payments to retire long-term debt . . . . (33.6) (28.1)
Decrease in long-term obligation under
capital lease. . . . . . . . . . . . . . (0.6) (0.6)
Net cash required by financing
activities . . . . . . . . . . . . . . (42.3) (44.9)
Net increase in cash and
cash equivalents . . . . . . . . . . . . 1.1 -
Cash and cash equivalents at beginning of
year. . . . . . . . . . . . . . . . . . . 0.2 0.2
Cash and cash equivalents
at end of period . . . . . . . . . . . . $ 1.3 $ 0.2
<PAGE>
The foregoing 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,
1995 and March 31, 1995 and the results of operations for the
nine and three month periods ended December 31, 1995 and 1994 and
cash flows for the nine month periods ended December 31, 1995 and
1994, in conformity with generally accepted accounting
principles, have been made.
Trinity Industries Leasing Company
Management's Discussion and Analysis of
Financial Condition and Results of Operations
The Registrant is a wholly-owned subsidiary of Trinity Industries,
Inc. ("Trinity").
Financial Condition
The decrease in 'Equipment on lease' at December 31, 1995 compared
to March 31, 1995 is due to sales of selected car types previously
for lease, partially offset by equipment purchases from Trinity.
The decrease in 'Long-term debt' at December 31, 1995 compared to
March 31, 1995 is due primarily to scheduled principal payments,
coupled with the retirement of two equipment trust certificates.
Results of Operations
Nine Months Ended December 31, 1995 vs.
Nine Months Ended December 31, 1994
'Revenues' increased principally due to the sale of selected
railcar types during the year that were previously held for lease.
'Operating profit' decreased principally due to the divestiture of
barge operations in the fourth quarter of fiscal year 1995
partially offset by the decrease in interest expense from the
retirement of equipment trust certificates.
Three Months Ended December 31, 1995 vs.
Three Months Ended December 31, 1994
'Revenues' decreased principally due to the divestiture of barge
operations in the fourth quarter of fiscal year 1995 and the larger
sale of railcars in the third quarter of prior fiscal year.
'Operating profit' decreased principally due to the divestiture of
barge operations in the fourth quarter of fiscal year 1995 and a
reduction of interest expense due to a decrease in long term debt
from fiscal year 1995.
<PAGE>
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 Leasing Company
By: F. Dean Phelps
F. Dean Phelps
Vice President
February 9, 1996
<PAGE>
Index to Exhibit
No. Description Page
27 Financial Data Schedule *
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> DEC-31-1995
<CASH> 1,300,000
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 391,100,000
<DEPRECIATION> (78,200,000)
<TOTAL-ASSETS> 458,700,000
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 1,000
0
0
<OTHER-SE> 192,100,000
<TOTAL-LIABILITY-AND-EQUITY> 458,700,000
<SALES> 0
<TOTAL-REVENUES> 104,600,000
<CGS> 0
<TOTAL-COSTS> 74,400,000
<OTHER-EXPENSES> (8,500,000)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 13,500,000
<INCOME-PRETAX> 25,200,000
<INCOME-TAX> 8,800,000
<INCOME-CONTINUING> 16,400,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 16,400,000
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
