Investor Presentaiton
Reconciliation: Total Company Pre-tax ROE
Numerator:
Income from continuing operations
Provision (benefit) for income taxes
Income from continuing operations before income taxes
Net (income) loss attributable to noncontrolling interest
FY 2019
LTM Q3-20
($ in millions)
$ 139.2
$
(77.1)
61.5
(205.8)
200.7
(282.9)
Adjustments
Adjusted Profit Before Tax
Denominator:
Stockholders' Equity
Noncontrolling interest
Accumulated other comprehensive loss
Adjusted Stockholders' Equity
Average total stockholders' equity
Return on Equity
(1)
Average Adjusted Stockholders' Equity
Pre-Tax Return on Equity
(2)
1.5
14.7
$ 216.9
FY 2018
$ 2,562.0
(351.2)
116.8
$2,327.6
FY 2019
$2,378.9
(348.8)
153.1
$ 2,183.2
$ 2,470.5
5.6%
$ 2,255.4
9.6%
79.6
318.3
$ 115.0
Q3-20
$2,093.6
(276.3)
164.5
$1,981.8
$ 2,236.3
-3.4%
$ 2,082.5
5.5%
(1) Return on Equity is calculated as income from continuing operations divided by average total stockholders' equity.
(2) Pre-Tax Return on Equity is calculated as adjusted profit before tax divided by average adjusted stockholders' equity, each as defined and reconciled above.
Pre-Tax Return on Equity ("Pre-Tax ROE") is a non-GAAP measure that is derived from amounts included in our GAAP financial statements. We define Pre-Tax ROE as a ratio for which (i) the
numerator is calculated as income from continuing operations adjusted to exclude the effects of the provision for income taxes, net income or loss attributable to noncontrolling interest, and
certain other adjustments, which include restructuring activities, the controlling interest portion of impairment of long-lived assets, and early redemption of debt; and (ii) the denominator is
calculated as average stockholders' equity, which excludes noncontrolling interest, adjusted to exclude accumulated other comprehensive income or loss.
In the table above, the numerator and denominator of our Pre-Tax ROE calculation are reconciled to income from continuing operations and total stockholders' equity, respectively, which are the
GAAP financial measures used in the computation of ROE. Management believes that Pre-Tax ROE is a useful measure to both management and investors as it provides an indication of the
economic return on the Company's investments over time, and considers the Company's expected tax position in the near-term. 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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