Investor Presentaiton
Reconciliation: Leasing Economic Profit
2016
2017
Leasing Operations
Operating Profit - Leasing Operations
(Less): Interest Expense
-
Profit Before Tax
(Add): Depreciation
Economic Profit
-
Leasing Operations
(Add): Operating Profit - Railcar Sales
$ 312.5
$ 341.3
(125.2)
(125.8)
2018
(in millions)
$ 291.8
(142.3)
2019
LTM Q3-20
$ 314.7
$
327.9
(197.2)
(200.0)
187.3
215.5
149.5
117.5
127.9
156.2
172.3
196.6
232.2
219.7
343.5
387.8
346.1
349.7
347.6
47.6
103.2
71.9
91.9
37.9
Total Economic Profit - Leasing Group
$ 391.1
$ 491.0
$ 418.0
$ 441.6
$
385.5
Economic Profit is a non-GAAP financial measure derived from amounts included in our GAAP financial statements.
For the Leasing Group, Economic Profit is defined as Operating Profit Leasing Operations as computed in accordance with GAAP, adjusted to deduct interest
expense and to add back depreciation expense and the operating profit related to railcar sales.
This non-GAAP measure is reconciled to Operating Profit Leasing Operations, the most directly comparable GAAP financial measure, in the table above.
Management believes that Economic Profit is useful to both management and investors in their analysis as it is a key measure of our businesses' cash flows and
takes into consideration operational cash flows and interest expense. 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
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