Investor Presentaiton
Reconciliation: Steady State Cash Flow
Net cash provided by operating activities
2016
continuing operations
837.5
2017
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
(Add): Net cost of sold lease fleet railcars owned one year or less
Adjusted Net Cash Provided by Operating Activities,
including Portfolio Sales
92.0
360.7
79.9
230.5
205.7
169.4
967.2
$ 1,050.7
92.4
597.1
319.3
163.0
921.7
$ 1,019.6
(Less): Manufacturing/Corporate D&A (Proxy for Steady State Capex)
(Less): Leasing Steady State CapEx Required (defined below)
Steady State Cash Flow Generation
(61.1)
$
(272.4)
633.7
$
(57.4)
(529.4)
463.9
(55.3)
$
(469.1)
72.7
$
(51.4)
(706.7)
163.6
(52.9)
$
(529.0)
437.7
Leasing Depreciation
Total Proceeds from sales of leased railcars
(Less): Total profit on railcar sales
(Add): NBV of rail portfolio sales
Leasing Steady State CapEx Required
2016
2017
2018
2019
LTM Q3-20
156.2
172.3
196.6
232.2
219.7
163.8
460.3
344.4
(47.6)
(103.2)
(71.9)
566.4
(91.9)
347.2
(37.9)
$
好好
116.2
357.1
272.5
$ 474.5
$ 309.3
$
272.4
$
529.4
469.1
$
706.7
$
529.0
Steady State Cash Flow 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, plus net cost of sold lease fleet railcars
owned one year or less, less manufacturing and corporate depreciation and amortization, less Leasing Steady State CapEx Required. Leasing Steady State
CapEx Required is defined as leasing depreciation plus the net book value of railcar sales.
We believe Steady State Cash Flow is useful to both management and investors as it provides a relevant measure of liquidity and a useful basis for assessing
our potential to fund further reinvestment in the business for growth or return capital to shareholders, after investments to maintain a comparable level of cash
flow at the enterprise level. Steady State Cash Flow 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
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