Investor Presentaiton
Reconciliation: Walking FCF Beyond Lease Investment
Disciplined Balance Sheet Management Yields Strong Excess Cash Flows
2016
2017
Net cash provided by operating activities
continuing operations
$ 837.5
$ 610.1
2018
(in millions)
$ 274.2
2019
LTM Q3-20
396.7
$ 687.2
(Add): Proceeds from railcar lease fleet sales owned more than
one year at the time of sale
37.7
360.7
Adjusted Net Cash Provided by Operating Activities
$ 875.2
(Less): Capital expenditures - manufacturing and other
(Less): Dividends paid to common shareholders
(49.5)
(66.7)
$ 970.8
(22.0)
(72.6)
230.5
$ 504.7
205.7
$ 602.4
169.4
$ 856.6
(37.3)
(97.0)
(77.4)
(82.1)
Free Cash Flow (before Capital expenditures - leasing)
(Less): Equity CapEx for new leased railcars
$ 759.0
(961.1)
$ 876.2
$ 390.0
423.3
(104.4)
(89.1)
663.1
(450.1)
(629.5)
Total Free Cash Flow After Investments & Dividends
$ (202.1)
$ 426.1
$ (239.5)
(278.5)
144.8
(482.1)
$ 181.0
Total Free Cash Flow After Investments and Dividends is a non-GAAP financial measure and is defined as net cash provided by operating activities from
continuing operations as computed in accordance with GAAP, plus cash proceeds from sales of leased railcars owned more than one year at the time of sale,
less capital expenditures for manufacturing, dividends paid, and Equity CapEx for new leased railcars. Equity CapEx for new leased railcars is defined as leasing
capital expenditures, net of sold lease fleet railcars owned one year or less, adjusted to exclude net proceeds (repayments) of debt.
We believe Total Free Cash Flow After Investments and Dividends is useful to both management and investors as it provides a relevant measure of liquidity and
a useful basis for assessing our ability to fund our operations and repay our debt. Total Free Cash Flow After Investments and Dividends is reconciled to net
cash provided by operating activities from continuing operations, the most directly comparable GAAP financial measure, in the table above. Non-GAAP measures
should not be considered in isolation or as a substitute for our reporting results prepared in accordance with GAAP and, as calculated, may not be comparable to
other similarly titled measures for other companies.
TRINITY INDUSTRIES
DELIVERING GOODS for THE GOOD of ALL III 81View entire presentation