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 June 30, 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 1-6903
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
41,546,162
(Number of shares of common stock outstanding as of June 30,
1995)
Part I
Item 1 - Financial Statements
Trinity Industries, Inc.
Consolidated Balance Sheet
(unaudited)
(in millions except per share data)
June 30 March 31
Assets 1995 1995
Cash and cash equivalents . . . . . . . . . $ 10.9 $ 15.3
Receivables . . . . . . . . . . . . . . . . 277.0 270.3
Inventories:
Finished goods. . . . . . . . . . . . . . 36.5 35.0
Work in process . . . . . . . . . . . . . 151.1 152.6
Raw material and supplies . . . . . . . . 248.8 207.4
Total inventories 436.4 395.0
Property, plant and equipment, at cost:
Excluding Leasing Subsidiary. . . . . . . 749.3 701.4
Leasing Subsidiary. . . . . . . . . . . . 389.9 387.3
Less accumulated depreciation:
Excluding Leasing Subsidiary. . . . . . . (320.6) (306.2)
Leasing Subsidiary. . . . . . . . . . . . (96.6) (95.4)
Other assets. . . . . . . . . . . . . . . . 49.2 52.3
$1,495.5 $1,420.0
Liabilities and Stockholders' Equity
Short-term debt . . . . . . . . . . . . . . $ 256.0 $ 220.0
Accounts payable and accrued liabilities. . 231.7 245.5
Billings in excess of cost and related
earnings. . . . . . . . . . . . . . . . . 11.9 12.0
Long-term debt:
Excluding Leasing Subsidiary. . . . . . . 44.3 37.7
Leasing Subsidiary. . . . . . . . . . . . 195.1 205.2
Deferred income taxes . . . . . . . . . . . 48.0 44.9
Other liabilities . . . . . . . . . . . . . 12.8 13.5
799.8 778.8
Stockholders' equity:
Common stock - par value $1 per share;
authorized 100.0 shares; shares issued
and outstanding at June 30, 1995 - 41.5
and March 31, 1995 - 40.2. . . . . . . . 41.5 40.2
Capital in excess of par value. . . . . . 254.2 221.7
Retained earnings . . . . . . . . . . . . 400.0 379.3
695.7 641.2
$1,495.5 $1,420.0
<PAGE>
Trinity Industries, Inc.
Consolidated Income Statement
(unaudited)
(in millions except per share data)
Three Months
Ended June 30
1995 1994
Revenues. . . . . . . . . . . . . . . . . . . . . . $604.7 $544.3
Operating costs:
Cost of revenues. . . . . . . . . . . . . . . . . 517.3 478.5
Selling, engineering and administrative expenses. 30.0 25.2
Interest expense of Leasing Subsidiary. . . . . . 4.7 5.6
Retirement plans expense. . . . . . . . . . . . . 3.5 2.6
555.5 511.9
Operating profit. . . . . . . . . . . . . . . . . . 49.2 32.4
Other (income) expenses:
Interest income . . . . . . . . . . . . . . . . . (0.2) (0.2)
Interest expense - excluding Leasing Subsidiary . 4.0 2.2
Other, net. . . . . . . . . . . . . . . . . . . . - (0.2)
3.8 1.8
Income before income taxes . . . . . . . . . . . . 45.4 30.6
Provision (benefit) for income taxes:
Current . . . . . . . . . . . . . . . . . . . . . 19.8 11.5
Deferred. . . . . . . . . . . . . . . . . . . . . (1.9) 0.6
17.9 12.1
Net income. . . . . . . . . . . . . . . . . . . . . $ 27.5 $ 18.5
Net income per common and common equivalent share . $ 0.66 $ 0.46
Weighted average number of common and common
equivalent shares outstanding. . . . . . . . . . . 41.6 40.5
<PAGE>
Trinity Industries, Inc.
Consolidated Statement of Cash Flows
(unaudited)
(in millions)
Three Months
Ended June 30
1995 1994
Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . . . . $ 27.5 $ 18.5
Adjustments to reconcile net income to net cash
provided (required) by operating activities:
Depreciation:
Excluding Leasing Subsidiary. . . . . . . . . . 14.3 11.7
Leasing Subsidiary. . . . . . . . . . . . . . . 4.9 5.2
Deferred provision (benefit) for income taxes. . (1.9) 0.6
Gain on sale of property, plant and equipment. . (0.1) (0.1)
Other. . . . . . . . . . . . . . . . . . . . . . (0.8) 0.3
Changes in assets and liabilities:
(Increase) decrease in receivables . . . . . . 1.4 (3.7)
(Increase) decrease in inventories. . . . . . . (40.3) 0.8
Increase in other assets . . . . . . . . . . . (0.9) (1.0)
Increase (decrease) in accounts payable
and accrued liabilities. . . . . . . . . . . . (16.1) 19.5
Decrease in billings in excess of cost and
related earnings . . . . . . . . . . . . . . . (0.1) (5.5)
Decrease in other liabilities . . . . . . . . . (1.6) (0.3)
Total adjustments . . . . . . . . . . . . . . (41.2) 27.5
Net cash provided (required) by operating
activities . . . . . . . . . . . . . . . . . . (13.7) 46.0
Cash flows from investing activities:
Proceeds from sale of property, plant
and equipment . . . . . . . . . . . . . . . . . . 8.4 1.6
Capital expenditures:
Excluding Leasing Subsidiary. . . . . . . . . . . (13.0) (17.2)
Leasing Subsidiary. . . . . . . . . . . . . . . . (13.2) (2.6)
Payment for purchase of acquisitions,
net of cash acquired. . . . . . . . . . . . . . . (2.3) (12.8)
Cash of acquired subsidiary. . . . . . . . . . . . 1.2 1.2
Net cash required by investing activities. . . . (18.9) (29.8)
Cash flows from financing activities:
Issuance of common stock . . . . . . . . . . . . . 2.6 0.4
Net borrowings under short-term debt . . . . . . . 36.0 7.0
Proceeds from issuance of long-term debt . . . . . 7.0 -
Payments to retire long-term debt. . . . . . . . . (10.6) (11.3)
Dividends paid . . . . . . . . . . . . . . . . . . (6.8) (6.7)
Net cash provided (required) by
financing activities. . . . . . . . . . . . . . 28.2 (10.6)
Net increase (decrease) in cash and cash
equivalents. . . . . . . . . . . . . . . . . . . . (4.4) 5.6
Cash and cash equivalents at beginning of year. . . 15.3 8.7
Cash and cash equivalents at end of period. . . . . $ 10.9 $ 14.3
<TABLE>
Trinity Industries, Inc.
Consolidated Statement of Stockholders' Equity
(unaudited)
(in millions except share and per share data)
<CAPTION>
Common Capital
Common Stock in Total
Shares $1.00 Excess Stock-
(100,000,000 Par of Par Retained holders'
Authorized) Value Value Earnings Equity
<S> <C> <C> <C> <C> <C>
Balance at March 31, 1994 . . . . 39,711,698 $39.7 $213.4 $317.4 $570.5
Other. . . . . . . . . . . . . . 167,330 0.2 5.1 - 5.3
Net income . . . . . . . . . . . - - - 18.5 18.5
Cash dividends
($0.17 per share) . . . . . . . - - - (6.8) (6.8)
Balance June 30, 1994 . . . . . . 39,879,028 $39.9 $218.5 $329.1 $587.5
Balance at March 31, 1995 . . . . 40,220,694 $40.2 $221.7 $379.3 $641.2
Other. . . . . . . . . . . . . . 1,325,468 1.3 32.5 - 33.8
Net income . . . . . . . . . . . - - - 27.5 27.5
Cash dividends
($0.17 per share) . . . . . . - - - (6.8) (6.8)
Balance June 30, 1995 . . . . . . 41,546,162 $41.5 $254.2 $400.0 $695.7
</TABLE>
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 June 30, 1995 and March 31, 1995, the results of
operations for the three month periods ended June 30, 1995 and 1994 and
cash flows for the three month periods ended June 30, 1995 and 1994, in
conformity with generally accepted accounting principles, have been made.
<PAGE>
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 June 30, 1995 compared to March 31, 1995 is due principally
to the acquisition of all of the stock of the holding company that owns
Grupo TATSA in Mexico City.
Statement of Operations
Three Months Ended June 30, 1995 vs.
Three Months Ended June 30, 1994
'Revenues' increased in the current three month period compared to the same
period of the prior year due primarily to increased business in the
Railcars, Construction Products, and Metal Components segments. The
increase was offset slightly by decreased 'Revenues' recorded by the Marine
Products segment.
The replacement market for railcars continues to contribute to the increase
in demand for freight cars and tank cars. Construction Products' 'Revenues'
for the current quarter were higher due to increased commercial,
industrial, and residential construction. Demand for construction products
is expected to remain favorable as attention is focused on the repair and
upgrading of the nation's bridges and highways. Improved operating results
within the Metal Components segment is due to the growing demand for
fittings, flanges, and container heads. Although Marine Products'
'Revenues' were lower at the end of the current quarter compared to the
same quarter a year ago, prospective orders and orders on hand for the
Marine Products segment were approaching record levels with an increasing
number of orders coming from foreign markets. This demand is being fueled
by an equipment replacement cycle similar to the Railcars segment.
The increase in 'Operating profit' in the current period is principally due
to the improved results from the Railcars, Metal Components, and
Construction Products segments.
Subsequent Events
At the Annual Meeting of Stockholders held July 19, 1995, stockholders
reelected eight incumbent directors for a one year term.
<PAGE>
Part II
Item 6 - Exhibits and Reports on Form 8-K.
No. Description
27 Financial Data Schedule
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
August 11, 1995
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> QTR-1
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> JUN-30-1995
<CASH> 10,900,000
<SECURITIES> 0
<RECEIVABLES> 277,000,000
<ALLOWANCES> 0
<INVENTORY> 436,400,000
<CURRENT-ASSETS> 0
<PP&E> 1,139,200,000
<DEPRECIATION> 417,200,000
<TOTAL-ASSETS> 1,495,500,000
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1,495,500,000
<SALES> 0
<TOTAL-REVENUES> 604,700,000
<CGS> 0
<TOTAL-COSTS> 550,800,000
<OTHER-EXPENSES> (200,000)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,700,000
<INCOME-PRETAX> 45,400,000
<INCOME-TAX> 17,900,000
<INCOME-CONTINUING> 27,500,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 27,500,000
<EPS-PRIMARY> 0.66
<EPS-DILUTED> 0
</TABLE>
