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 1-6903
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 ________
41,549,793
( Number of shares of common stock outstanding as of December 31, 1995)
Part I
Item 1 - Financial Statements
<TABLE>
Trinity Industries, Inc.
Consolidated Balance Sheet
(unaudited)
(in millions except per share data)
<CAPTION>
December 31 March 31
1995 1995
<S> <C> <C>
Assets
Cash and cash equivalents. . . . . . . . . . . . . $ 11.8 $ 15.3
Receivables. . . . . . . . . . . . . . . . . . . . 217.1 270.3
Inventories:
Finished goods . . . . . . . . . . . . . . . . . 41.4 35.0
Work in process. . . . . . . . . . . . . . . . . 139.6 152.6
Raw materials and supplies . . . . . . . . . . . 256.4 207.4
Total inventories 437.4 395.0
Property, plant and equipment, at cost:
Excluding Leasing Subsidiary . . . . . . . . . . 761.3 701.4
Leasing Subsidiary . . . . . . . . . . . . . . . 352.3 387.3
Less accumulated depreciation:
Excluding Leasing Subsidiary . . . . . . . . . . (343.4) (306.2)
Leasing Subsidiary . . . . . . . . . . . . . . . (78.1) (95.4)
Other assets . . . . . . . . . . . . . . . . . . . 61.2 52.3
$1,419.6 $1,420.0
Liabilities and Stockholders' Equity
Short-term debt. . . . . . . . . . . . . . . . . $ 191.0 $ 220.0
Accounts payable and accrued liabilities . . . . . 213.1 245.5
Billings in excess of cost and
related earnings . . . . . . . . . . . . . . . . 28.9 12.0
Long-term debt:
Excluding Leasing Subsidiary . . . . . . . . . . 41.8 37.7
Leasing Subsidiary . . . . . . . . . . . . . . . 171.0 205.2
Deferred income taxes. . . . . . . . . . . . . . . 35.4 44.9
Other liabilities. . . . . . . . . . . . . . . . . 16.0 13.5
697.2 778.8
Stockholders' equity:
Common stock - par value $1 per share;
authorized 100.0 shares; shares issued
and outstanding at December 31, 1995 -
41.6 and March 31, 1995 - 40.2. . . . . . . . . 41.6 40.2
Capital in excess of par value . . . . . . . . . 239.2 221.7
Retained earnings. . . . . . . . . . . . . . . . 441.6 379.3
722.4 641.2
$1,419.6 $1,420.0
</TABLE>
<TABLE>
<PAGE>
Trinity Industries, Inc.
Consolidated Income Statement
(unaudited)
(in millions except per share data)
<CAPTION>
Nine Months
Ended December 31
1995 1994
<S> <C> <C>
Revenues. . . . . . . . . . . . . . . . . . . . . . . $1,835.5 $1,676.7
Operating costs:
Cost of revenues. . . . . . . . . . . . . . . . . . 1,573.4 1,462.7
Selling, engineering and administrative expenses 89.5 77.5
Interest expense of Leasing Subsidiary. . . . . . . . 13.5 16.1
Retirement plans expense. . . . . . . . . . . . . . . 10.3 8.5
1,686.7 1,564.8
Operating profit. . . . . . . . . . . . . . . . . . . 148.8 111.9
Other (income) expenses:
Interest income . . . . . . . . . . . . . . . . . . . (1.6) (0.5)
Interest expense - excluding Leasing Subsidiary 13.6 8.2
Other, net. . . . . . . . . . . . . . . . . . . . . . (0.9) (0.7)
11.1 7.0
Income before income taxes. . . . . . . . . . . . . . 137.7 104.9
Provision (benefit) for income taxes:
Current . . . . . . . . . . . . . . . . . . . . . . . 69.1 44.6
Deferred. . . . . . . . . . . . . . . . . . . . . . . (14.9) (3.1)
54.2 41.5
Net income. . . . . . . . . . . . . . . . . . . . . . $ 83.5 $ 63.4
Net income per common and common equivalent share $ 1.99 $ 1.57
Weighted average number of common and common
equivalent shares outstanding . . . . . . . . . . . . 41.8 40.5
</TABLE>
<TABLE>
<PAGE>
Trinity Industries, Inc.
Consolidated Income Statement
(unaudited)
(in millions except per share data)
<CAPTION>
Three Months Ended
December 31
1995 1994
<S> <C> <C>
Revenues. . . . . . . . . . . . . . . . . . . . . . $602.3 $576.9
Operating costs:
Cost of revenues. . . . . . . . . . . . . . . . . . 514.9 501.7
Selling, engineering and administrative expenses 30.0 26.7
Interest expense of Leasing Subsidiary. . . . . . . 4.3 4.9
Retirement plans expense. . . . . . . . . . . . . . 3.5 3.0
552.7 536.3
Operating profit. . . . . . . . . . . . . . . . . . 49.6 40.6
Other (income) expenses:
Interest income . . . . . . . . . . . . . . . . . . (0.3) (0.2)
Interest expense - excluding Leasing Subsidiary 4.7 3.2
Other, net. . . . . . . . . . . . . . . . . . . . . (1.1) -
3.3 3.0
Income before income taxes. . . . . . . . . . . . . 46.3 37.6
Provision (benefit) for income taxes:
Current . . . . . . . . . . . . . . . . . . . . . . 24.1 18.0
Deferred. . . . . . . . . . . . . . . . . . . . . . (5.9) (3.1)
18.2 14.9
Net income. . . . . . . . . . . . . . . . . . . . . $ 28.1 $ 22.7
Net income per common and common equivalent share $ 0.67 $ 0.56
Weighted average number of common and common
equivalent shares outstanding . . . . . . . . . . . 41.9 40.6
</TABLE>
<TABLE>
<PAGE>
Trinity Industries, Inc.
Consolidated Statement of Cash Flows
(unaudited)
(in millions)
<CAPTION>
Nine Months Ended
December 31
1995 1994
<S> <C> <C>
Cash flows from operating activities:
Net income. . . . . . . . . . . . . . . . . . . . . . . . $ 83.5 $ 63.4
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation:
Excluding Leasing Subsidiary . . . . . . . . . . . . . . 41.4 37.6
Leasing Subsidiary . . . . . . . . . . . . . . . . . . . 13.7 12.2
Deferred benefit for income taxes. . . . . . . . . . . . (14.9) (3.1)
Gain on sale of property, plant and equipment. . . . . . (2.7) (0.2)
Other. . . . . . . . . . . . . . . . . . . . . . . . . . (2.1) (4.4)
Changes in assets and liabilities:
Decrease in receivables. . . . . . . . . . . . . . . . . 59.5 -
Increase in inventories. . . . . . . . . . . . . . . . . (33.8) (11.4)
Increase in other assets . . . . . . . . . . . . . . . . (2.1) (3.3)
Increase (decrease) in accounts payable and accrued
liabilities . . . . . . . . . . . . . . . . . . . . . . (47.2) 41.5
Increase (decrease) in billings in excess of cost and
related earnings. . . . . . . . . . . . . . . . . . . . 16.8 (4.4)
Increase in other liabilities. . . . . . . . . . . . . . 1.4 1.2
Total adjustments. . . . . . . . . . . . . . . . . . . 30.0 65.7
Net cash provided by operating activities. . . . . . . . 113.5 129.1
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment 67.5 26.8
Capital expenditures:
Excluding Leasing Subsidiary . . . . . . . . . . . . . . (33.1) (45.3)
Leasing Subsidiary . . . . . . . . . . . . . . . . . . . (46.5) (15.1)
Payment for purchase of acquisitions, net of
cash acquired. . . . . . . . . . . . . . . . . . . . . . (28.6) (57.5)
Cash of acquired subsidiary. . . . . . . . . . . . . . . 1.2 2.4
Net cash required by investing activities. . . . . . . . (39.5) (88.7)
Cash flows from financing activities:
Issuance of common stock . . . . . . . . . . . . . . . . 2.5 0.7
Net borrowings under short-term debt . . . . . . . . . . (29.0) 7.0
Proceeds from issuance of long-term debt . . . . . . . . 7.0 -
Payments to retire long-term debt. . . . . . . . . . . . (37.1) (34.1)
Dividends paid . . . . . . . . . . . . . . . . . . . . . (20.9) (20.3)
Net cash required by financing activities. . . . . . . . (77.5) (46.7)
Net decrease in cash and cash equivalents. . . . . . . . (3.5) (6.3)
Cash and cash equivalents at beginning of year . . . . . 15.3 8.7
Cash and cash equivalents at end of period . . . . . . . $ 11.8 $ 2.4
</TABLE>
<TABLE>
<PAGE>
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 . . . . . . . . . . . 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 December 31, 1994 40,208,736 $40.2 $222.3 $360.4 $622.9
Balance at March 31, 1995 40,220,694 $40.2 $221.7 $379.3 $641.2
Other . . . . . . . . . . . 1,329,099 1.4 17.5 - 18.9
Net income. . . . . . . . . - - - 83.5 83.5
Cash Dividends
($0.51 per share) . . . . - - - (21.2) (21.2)
Balance December 31, 1995 41,549,793 $41.6 $239.2 $441.6 $722.4
</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 December 31, 1995 and March 31, 1995, 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.
<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 December 31, 1995 compared to March 31, 1995 is due
primarily to business acquisitions in the Marine Products and Construction
Products segments.
Statement of Operations
Nine Months Ended December 31, 1995 vs.
Nine Months Ended December 31, 1994
All business segments recorded increased 'Revenues' in the current nine
month period compared to the same period of the prior year due to ongoing
demand for Trinity's products.
Improved operating results in the Railcars segment is due primarily to the
steady level of railcar orders throughout the year which reflect the
strength of the ongoing replacement cycle for railcars. This increase is
indicative of true long-term demand and is expected to continue in the
future. The strong performances by the highway guardrail, safety barriers
and ready-mix concrete businesses, coupled with an increase in funding for
the improvement of the nation's highway system contributed to the increase
in 'Revenues' and 'Operating Profit' for the Construction Products segment.
Leasing's 'Revenues' increased due to the sale of selected railcars
previously held for lease. Marine Products' 'Revenues' in the current
period are higher due to the ongoing demand of the barge replacement cycle.
The replacement cycle is expected to continue as the increase in
agricultural shipments fuel the demand for open hopper barges.
Three Months Ended December 31, 1995 vs.
Three Months Ended December 31, 1994
Operating results are higher in the current quarter due primarily to
increased business in the Railcars and Construction Products segments.
Business conditions remain favorable for Trinity's products.
<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, Inc.
By: F. Dean Phelps
F. Dean Phelps
Vice President
February 12, 1996
<PAGE>
Index to Exhibit
No. Description Page
27 Financial Data Schedule *
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> DEC-31-1995
<CASH> 11,800,000
<SECURITIES> 0
<RECEIVABLES> 217,100,000
<ALLOWANCES> 0
<INVENTORY> 437,400,000
<CURRENT-ASSETS> 0
<PP&E> 1,113,600,000
<DEPRECIATION> (421,500,000)
<TOTAL-ASSETS> 1,419,600,000
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 41,600,000
0
0
<OTHER-SE> 680,800,000
<TOTAL-LIABILITY-AND-EQUITY> 1,419,600,000
<SALES> 0
<TOTAL-REVENUES> 1,835,500,000
<CGS> 0
<TOTAL-COSTS> 1,673,200,000
<OTHER-EXPENSES> (2,500,000)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 27,100,000
<INCOME-PRETAX> 137,700,000
<INCOME-TAX> 54,200,000
<INCOME-CONTINUING> 83,500,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 83,500,000
<EPS-PRIMARY> 1.99
<EPS-DILUTED> 1.99
</TABLE>
