Part I [Business](index=6&type=section&id=Item%201.%20Business) Trinity Industries is a leading North American railcar products and services provider, structured into three segments and subject to extensive regulation - Trinity Industries is a leading provider of railcar products and services in North America, marketed under the TrinityRail brand[15](index=15&type=chunk) - The company's operations are subject to regulation by multiple governmental agencies in the U.S., Canada, and Mexico, including the FRA, PHMSA, AAR, and OSHA[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) Reportable Segments | Segment | Description | | :--- | :--- | | **Railcar Leasing and Management Services Group** | Owns and operates a fleet of railcars, provides leasing, management, and administrative services | | **Rail Products Group** | Manufactures and sells railcars, related parts, and provides maintenance and modification services | | **All Other** | Includes the highway products business and costs for non-operating facilities | Employee Headcount by Segment (as of Dec 31, 2020) | Segment | Employee Count | | :--- | :--- | | Railcar Leasing and Management Services Group | 155 | | Rail Products Group | 5,295 | | All Other | 635 | | Corporate and Enterprise Support | 290 | | **Total** | **6,375** | [Railcar Leasing and Management Services Group](index=7&type=section&id=Item%201.%20Business.Railcar%20Leasing%20and%20Management%20Services%20Group) The Railcar Leasing and Management Services Group provides operating leases for a diversified fleet of over 107,000 railcars and manages third-party fleets - The lease fleet is diversified across various end markets, including Agriculture, Construction & Metals, Consumer Products, Energy, and Refined Products & Chemicals[21](index=21&type=chunk)[23](index=23&type=chunk) Lease Fleet Status (as of Dec 31, 2020) | Metric | Value | | :--- | :--- | | Total Railcars in Lease Fleet | 107,045 | | Fleet Utilization | 94.5% | | Total Railcars Under Management | 133,690 | [Rail Products Group](index=9&type=section&id=Item%201.%20Business.Rail%20Products%20Group) The Rail Products Group manufactures various freight and tank railcars and offers comprehensive maintenance and repair services, with steel as a primary cost driver - This group manufactures freight and tank railcars and provides a full range of maintenance and modification services[25](index=25&type=chunk)[26](index=26&type=chunk) - Input costs for materials, primarily steel and specialty components, represent over **70%** of the cost of most railcars[31](index=31&type=chunk) [All Other Segment](index=9&type=section&id=Item%201.%20Business.All%20Other) The All Other segment primarily comprises a leading U.S. highway products manufacturer, experiencing seasonal revenue fluctuations, and includes non-operating facility costs - This segment includes a leading U.S. manufacturer of highway products like guardrails and crash cushions[29](index=29&type=chunk) - The highway products business experiences seasonality, with revenues typically highest in the second and third quarters[29](index=29&type=chunk) [Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse risks including cyclical industry demand, COVID-19 impacts, operational challenges in Mexico, intense competition, and financial and regulatory exposures - The industries in which Trinity operates are cyclical, and economic downturns can significantly decrease demand, leading to lower sales and profits[68](index=68&type=chunk) - The COVID-19 pandemic has had, and could continue to have, a material adverse effect on operations, financial condition, liquidity, and demand for products and services[69](index=69&type=chunk) - Operations in Mexico are subject to political, economic, and trade risks. Changes in U.S. or Mexican government policies, tariffs, or trade barriers could adversely affect the business[70](index=70&type=chunk) - The company faces risks related to cybersecurity attacks and data breaches, which could lead to financial loss, litigation, and reputational harm[78](index=78&type=chunk) - The business is subject to extensive regulation. Changes in requirements from agencies like the FRA, PHMSA, and AAR could increase operating costs or reduce demand[105](index=105&type=chunk)[108](index=108&type=chunk) - The phaseout of LIBOR by June 2023 may adversely affect interest rates on the company's debt, potentially increasing borrowing costs[104](index=104&type=chunk) [Unresolved Staff Comments](index=26&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[122](index=122&type=chunk) [Properties](index=26&type=section&id=Item%202.%20Properties) The company operates various owned and leased facilities across the U.S. and Mexico, with the Rail Products Group utilizing the majority of space - The estimated weighted average production capacity utilization for the Rail Products and All Other segments was approximately **70%** for the year ended December 31, 2020[124](index=124&type=chunk) Facility Space by Segment (Approx. Square Feet) | Segment | Owned | Leased | | :--- | :--- | :--- | | Rail Products Group | 5,553,100 | 133,400 | | All Other | 822,500 | 96,400 | | Corporate Offices | — | 162,800 | | **Total** | **6,375,600** | **392,600** | [Legal Proceedings](index=26&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 15 of the Consolidated Financial Statements - For details on legal proceedings, refer to Note 15 of the Consolidated Financial Statements[125](index=125&type=chunk) [Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[126](index=126&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=27&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Trinity's common stock trades on the NYSE under 'TRN', showing a 168% cumulative return over five years, with recent share repurchases - In October 2020, the Board authorized a new share repurchase program of up to **$250.0 million** through December 31, 2021[134](index=134&type=chunk)[162](index=162&type=chunk) Cumulative Total Stockholder Return (2015-2020) | Year | Trinity Industries, Inc. | Dow Jones US Commercial Vehicles & Trucks Index | New York Stock Exchange Composite Index | S&P MidCap 400 | | :--- | :--- | :--- | :--- | :--- | | 2015 | 100 | 100 | 100 | 100 | | 2016 | 118 | 144 | 112 | 121 | | 2017 | 162 | 211 | 133 | 140 | | 2018 | 122 | 177 | 122 | 125 | | 2019 | 136 | 223 | 153 | 157 | | 2020 | 168 | 288 | 164 | 179 | Issuer Purchases of Equity Securities (Q4 2020) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Remaining Authorization (in millions) | | :--- | :--- | :--- | :--- | :--- | | Oct 2020 | 521,807 | $19.41 | 519,902 | $239.9 | | Nov 2020 | 1,175,020 | $21.74 | 1,169,576 | $214.5 | | Dec 2020 | 1,287,609 | $25.14 | 1,285,444 | $182.2 | | **Total Q4** | **2,984,436** | | **2,974,922** | **$182.2** | [Selected Financial Data](index=28&type=section&id=Item%206.%20Selected%20Financial%20Data) The company has elected to omit the presentation of Selected Financial Data, aligning with SEC's updated requirements - The company has elected not to present Selected Financial Data as it is no longer required by the SEC[135](index=135&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Trinity's 2020 financial performance saw a significant revenue decline and operating loss due to COVID-19 and industry downturns, offset by strong cash flow and strategic capital management - Revenues decreased by **33.5%** primarily due to lower deliveries in the Rail Products Group and fewer railcars sold from the lease fleet[171](index=171&type=chunk) - A significant impairment charge of **$396.4 million** was recorded, primarily related to small cube covered hopper railcars, due to a fundamental and other-than-temporary change in future demand[143](index=143&type=chunk)[174](index=174&type=chunk) - The company's effective tax rate was a benefit of **54.3%** for 2020, largely due to the impact of the CARES Act, which allowed for the carryback of tax losses to years with a higher federal tax rate[180](index=180&type=chunk)[181](index=181&type=chunk) Consolidated Results of Operations (2020 vs. 2019) | Metric (in millions) | 2020 | 2019 | | :--- | :--- | :--- | | Revenues | $1,999.4 | $3,005.1 | | Operating Profit (Loss) | $(124.5) | $416.3 | | Impairment of long-lived assets | $396.4 | $— | | Income (Loss) from continuing operations | $(226.1) | $139.2 | [Segment Discussion](index=38&type=section&id=Item%207.%20MD%26A.Segment%20Discussion) Segment performance varied, with Railcar Leasing and Rail Products experiencing revenue and profit declines, while All Other improved profitability through cost reductions Operating Profit (Loss) by Segment (in millions) | Segment | 2020 | 2019 | | :--- | :--- | :--- | | Railcar Leasing and Management Services Group | $353.7 | $406.6 | | Rail Products Group | $36.3 | $277.6 | | All Other | $28.2 | $19.9 | | Corporate | $(97.7) | $(108.0) | | Impairment, Restructuring & Eliminations | $(443.3) | $(179.8) | | **Consolidated Total** | **$(124.5)** | **$416.3** | [Liquidity and Capital Resources](index=42&type=section&id=Item%207.%20MD%26A.Liquidity%20and%20Capital%20Resources) As of December 31, 2020, Trinity maintained strong liquidity and operating cash flow, while investing in its lease fleet and returning capital to shareholders - As of December 31, 2020, the company has committed liquidity of **$727.4 million**, comprising **$132.0 million** in cash, **$364.8 million** available under its revolving credit facility, and **$230.6 million** available under the TILC warehouse facility[198](index=198&type=chunk) - Capital expenditures for 2021 are projected to be between **$300 million** and **$350 million** for net lease fleet investment, and **$45 million** to **$60 million** for manufacturing and other activities[217](index=217&type=chunk) Summary of Cash Flows (in millions) | Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash from operating activities | $651.8 | $396.7 | | Net cash used in investing activities | $(532.9) | $(993.3) | | Net cash (used in) provided by financing activities | $(168.0) | $526.5 | Contractual Obligations Summary (as of Dec 31, 2020) | Obligation (in millions) | Total | Due in 1 Year or Less | | :--- | :--- | :--- | | Debt and Interest | $5,719.3 | $404.7 | | Operating Leases | $120.2 | $12.2 | | Purchase Obligations | $401.2 | $358.3 | | **Total** | **$6,241.7** | **$776.2** | [Critical Accounting Policies and Estimates](index=47&type=section&id=Item%207.%20MD%26A.Critical%20Accounting%20Policies%20and%20Estimates) Critical accounting policies involve significant judgment in areas such as long-lived asset impairment, income taxes, goodwill testing, variable interest entities, and self-insurance liabilities - The impairment assessment of long-lived assets, such as the **$369.4 million** charge for small cube covered hopper railcars, requires significant management judgment on future lease rates, utilization, and discount rates[229](index=229&type=chunk) - Accounting for income taxes involves estimating the timing and realization of deferred tax assets and liabilities, including assessing the need for valuation allowances[230](index=230&type=chunk) - Goodwill impairment testing is performed annually and requires estimates of future revenue, operating profit, and discount rates for each reporting unit[231](index=231&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks, primarily interest rate fluctuations on variable-rate debt, using derivatives, with foreign currency and commodity exposures deemed immaterial - The company's primary market risk is interest rate fluctuation, with **27.3%** of its debt at variable rates as of year-end 2020[242](index=242&type=chunk) - A hypothetical **1%** increase in average interest rates for fiscal year 2021 would increase interest expense by approximately **$8.9 million**, net of hedges[242](index=242&type=chunk) [Financial Statements and Supplementary Data](index=54&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for 2020, reflecting a net loss driven by impairment and pension charges, partially offset by tax benefits, with stable assets and increased debt - The company adopted new accounting standards for credit losses (ASU 2016-13) and cloud computing costs (ASU 2018-15) in 2020, with no significant impact on the financial statements[314](index=314&type=chunk)[315](index=315&type=chunk) - The company is involved in ongoing highway products litigation, including state qui tam actions and product liability lawsuits. While a loss is not considered probable for the state actions, the financial impact could be material. An accrual of **$7.5 million** has been made for other matters as of Dec 31, 2020[436](index=436&type=chunk)[439](index=439&type=chunk)[442](index=442&type=chunk) Consolidated Balance Sheet Summary (in millions) | Account | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Total Assets | $8,701.8 | $8,701.4 | | Total Liabilities | $6,685.8 | $6,322.5 | | Total Stockholders' Equity | $2,016.0 | $2,378.9 | Consolidated Statement of Operations Summary (in millions) | Account | 2020 | 2019 | | :--- | :--- | :--- | | Revenues | $1,999.4 | $3,005.1 | | Total operating profit (loss) | $(124.5) | $416.3 | | Income (loss) from continuing operations | $(226.1) | $139.2 | | Net income (loss) attributable to Trinity | $(147.3) | $137.6 | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=107&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[444](index=444&type=chunk) [Controls and Procedures](index=107&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and independent auditors concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2020 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[445](index=445&type=chunk) - Management assessed internal control over financial reporting as effective based on the COSO framework, and the independent auditor, Ernst & Young LLP, concurred[449](index=449&type=chunk)[450](index=450&type=chunk)[454](index=454&type=chunk) [Other Information](index=109&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[461](index=461&type=chunk) Part III [Directors, Executive Officers, and Corporate Governance](index=109&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2021 Proxy Statement - Required information is incorporated by reference from the Registrant's definitive 2021 Proxy Statement[463](index=463&type=chunk) [Executive Compensation](index=109&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive and director compensation is incorporated by reference from the 2021 Proxy Statement - Required information is incorporated by reference from the Registrant's definitive 2021 Proxy Statement[465](index=465&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=110&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership and equity compensation plans is incorporated by reference from the 2021 Proxy Statement Equity Compensation Plan Information (as of Dec 31, 2020) | Plan Category | Securities to be Issued Upon Exercise | Weighted-Average Exercise Price | Securities Remaining Available for Future Issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 4,113,458 | N/A | 1,973,045 | | Equity compensation plans not approved by security holders | — | N/A | — | | **Total** | **4,113,458** | | **1,973,045** | [Certain Relationships and Related Transactions, and Director Independence](index=110&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related person transactions and director independence is incorporated by reference from the 2021 Proxy Statement - Required information is incorporated by reference from the Registrant's definitive 2021 Proxy Statement[470](index=470&type=chunk) [Principal Accountant Fees and Services](index=110&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the 2021 Proxy Statement - Required information is incorporated by reference from the Registrant's definitive 2021 Proxy Statement[471](index=471&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=111&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section provides an index of exhibits filed with the report, including governance documents and debt agreements, and notes the omission of financial statement schedules - This section contains the index to all exhibits filed with the Form 10-K, including governance documents, material contracts, and certifications[473](index=473&type=chunk)[475](index=475&type=chunk) [Form 10-K Summary](index=115&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no Form 10-K summary - None[480](index=480&type=chunk)

Trinity Industries, Inc. (NYSE:TRN) Q4 2020 Earnings Conference Call February 24, 2021 8:30 AM ET Company Participants Jessica Greiner - Vice President, Investor Relations & Communications Jean Savage - Chief Executive Officer & President Eric Marchetto - Chief Financial Officer Conference Call Participants Justin Long - Stephens Allison Poliniak - Wells Fargo Gordon Johnson - GLJ Bascome Majors - Susquehanna Matt Elkott - Cowen Steve Barger - KeyBanc Operator Good morning and welcome to the Trinity Industr ...

UNITED STATES SECURITIES AND EXCHANGE CO. Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2020 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 (Exact name of registrant as specified in its charter) Delaware 75-0225040 (State or Other Jurisdiction of ...

Trinity Industries, Inc. (NYSE:TRN) Q3 2020 Earnings Conference Call October 22, 2020 11:00 AM ET Company Participants Jessica Greiner - VP, IR & Communications Jean Savage - CEO & President Eric Marchetto - CFO Conference Call Participants Bascome Majors - Susquehanna Matt Elkott - Cowen Gordon Johnson - GLJ Research Allison Poliniak - Wells Fargo Justin Long - Stephens Steve Barger - KeyBanc Capital Markets Operator Good day and welcome to the Trinity Industries’ Third Quarter Results Conference Call. At ...

Trinity Industries, Inc. (NYSE:TRN) Q2 2020 Results Conference Call July 23, 2020 12:00 PM ET Company Participants Jessica Greiner - VP, IR & Communications Jean Savage - CEO & President Melendy Lovett - CAO Eric Marchetto - CFO Conference Call Participants Steve Barger - KeyBanc Capital Matt Elkott - Cowen James Bardowski - GLJ Research Justin Long - Stephens Allison Poliniak - Wells Fargo Bascome Majors - Susquehanna Barry Haimes - Sage Asset Management Operator Welcome to the Second Quarter Results Confe ...

UNITED STATES SECURITIES AND EXCHANGE CO. Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2020 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 (Exact name of registrant as specified in its charter) Delaware 75-0225040 (State or Other Jurisdiction of Inco ...

2Q 2020 – Earnings Conference Call Supplemental Material July 23, 2020 – based on financial results as of June 30, 2020 Investor Contact: TrinityInvestorRelations@trin.net Website: www.trin.net Forward Looking Statements Some statements in this presentation, which are not historical facts, are "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity's estimates, expectations, beliefs, intentions or strategies ...

Financial Data and Key Metrics Changes - The company reported a significant focus on cost structure optimization, with a target reduction of $25 million to $30 million in administrative costs, achieving $9 million to $10 million in the first quarter [30][31] - The company expects to receive $300 million in tax refunds due to the CARES Act, enhancing its liquidity position [24][52] - As of the end of the first quarter, the company had committed available liquidity of $760 million [52] Business Line Data and Key Metrics Changes - The Leasing Group's revenue and profit from operations grew year-over-year due to an increase in the lease fleet and higher average lease rates [41] - The Rail Products Group delivered over 3,700 railcars in the first quarter while reducing production capacity [42] - Lease fleet utilization declined to 95.4%, with new railcar orders totaling 1,970 railcars for the quarter [43] Market Data and Key Metrics Changes - The company noted significant declines in rail volumes, leading to underutilized railcar equipment, but identified agricultural markets as a bright spot for rail equipment demand [45] - Approximately 80% of customers operate as essential businesses, which has helped maintain some level of demand [44] - The company removed approximately 540 tank cars from its backlog due to changes in customer financial conditions [47] Company Strategy and Development Direction - The company is focused on aligning its cost structure with current demand and optimizing its balance sheet through leveraging its lease fleet [34][55] - Management is committed to maintaining long-term goals despite the current challenging environment, emphasizing the importance of business continuity and capital preservation [29][60] - The company plans to provide a broader strategic roadmap in the third quarter call [61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to withstand the economic crisis caused by COVID-19, citing the long-term nature of leasing contracts as a protective factor [22][26] - The company is conducting scenario analyses to guide capital allocation decisions amid market uncertainty [62] - Management acknowledged that achieving long-term targets may take longer due to current market conditions [80] Other Important Information - The company has a diverse lease fleet of approximately 130,000 railcars, providing visibility into lease and fee income [53] - The company has unencumbered assets of approximately $1.5 billion available for monetization [54] - The company has maintained its dividends, paying out its 224th consecutive quarterly dividend [68] Q&A Session Summary Question: Commentary on lease rates and trends - Management noted that the increase in lease rates was influenced by portfolio changes, but headwinds on lease rates are expected to continue [75] Question: Thoughts on secondary market dynamics - The company sold about $110 million worth of railcars in the first quarter, but future transactions may depend on market conditions [76] Question: Focus on utilization versus lease rates - The company is currently prioritizing utilization over lease rates, as customer needs dictate the demand for railcars [77] Question: Update on return on equity targets - Management indicated that achieving long-term targets will be challenging but remains committed to them [80] Question: Headcount savings and cost reduction plans - The headcount savings are included in the overall cost savings target, with further reductions possible if the downturn extends [81] Question: Guidance on operating cash flow - Management expects positive operating cash flow, supported by natural working capital gains and tax benefits [82] Question: Utilization and balance sheet optimization - Management stated that there is no set target for fleet utilization before taking action to manage the fleet [88] Question: Production rates and delivery expectations - Management indicated that the second quarter is expected to be more challenging than the first quarter [126]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's Q1 2020 financials show stable revenue but lower operating profit, with net income significantly boosted by a one-time tax benefit [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2020 vs Q1 2019 Operations | Financial Metric | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | **Total Revenues** | $615.2 million | $604.8 million | | **Total Operating Profit** | $73.0 million | $91.8 million | | **Income from Continuing Operations** | $162.5 million | $31.2 million | | **Net Income** | $162.3 million | $30.1 million | | **Diluted EPS (Continuing Operations)** | $1.33 | $0.24 | - Net income for Q1 2020 was significantly impacted by a **tax benefit of $147.6 million**, compared to a tax provision of $8.9 million in Q1 2019, primarily due to the CARES Act[7](index=7&type=chunk) [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Financial Position as of March 31, 2020 | Balance Sheet Item | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | $9,002.9 million | $8,701.4 million | | **Total Liabilities** | $6,536.8 million | $6,322.5 million | | **Total Debt** | $4,870.2 million | $4,881.9 million | | **Total Stockholders' Equity** | $2,466.1 million | $2,378.9 million | - Income tax receivable **increased substantially to $389.1 million** as of March 31, 2020, from $14.7 million at December 31, 2019, reflecting anticipated refunds under the CARES Act[11](index=11&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2020 vs Q1 2019 Cash Flow | Cash Flow Activity | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $173.6 million | ($125.9 million) | | **Net Cash used in Investing Activities** | ($64.6 million) | ($438.5 million) | | **Net Cash from (used in) Financing Activities** | ($77.1 million) | $401.7 million | - The **significant improvement in operating cash flow** was driven by higher net income (adjusted for non-cash items) and changes in operating assets and liabilities[12](index=12&type=chunk) - The reduction in cash used for investing activities was primarily due to **lower capital expenditures** for the leasing fleet[12](index=12&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail a depreciation estimate change, a significant CARES Act tax benefit, restructuring charges, and share repurchase activities - A change in accounting estimate for railcar useful lives **decreased depreciation expense by approximately $7.7 million** and increased net income by approximately $5.9 million for the quarter[38](index=38&type=chunk) - The CARES Act allowed the company to carry back tax losses, generating a **tax benefit of $154.7 million** for the quarter[91](index=91&type=chunk) - In Q1 2020, the company recorded **restructuring charges of $5.5 million**, consisting of a $5.2 million non-cash impairment of its corporate headquarters and other items[99](index=99&type=chunk) Share Repurchase Activity (Q1 2020) | Share Repurchase Activity (Jan 1 - Mar 31, 2020) | Value | | :--- | :--- | | **Shares Repurchased** | 1,850,000 | | **Cost** | $35.4 million | | **Remaining Authorization (as of Mar 31, 2020)** | $89.9 million | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses flat revenue, decreased operating profit due to rail product issues, and the expected future impact of COVID-19 [COVID-19 Impact](index=48&type=section&id=COVID-19%20Impact) - While COVID-19 did not materially impact Q1 2020 results, the company **expects a decline in near-term results** due to reduced demand and potential disruptions[145](index=145&type=chunk) - The company has taken measures to preserve cash and anticipates receiving **tax refunds totaling approximately $303 million** in 2020 due to the CARES Act[144](index=144&type=chunk) [Segment Performance](index=54&type=section&id=Segment%20Performance) - **Railcar Leasing and Management Services Group:** Operating profit **increased 8.3% YoY to $92.9 million**, driven by fleet growth and a reduction in depreciation expense[175](index=175&type=chunk)[176](index=176&type=chunk)[181](index=181&type=chunk) - **Rail Products Group:** Operating profit **fell 46.7% YoY to $25.1 million** due to fewer railcar deliveries and operational inefficiencies, with the backlog value decreasing 52.1% YoY[183](index=183&type=chunk)[184](index=184&type=chunk) - **All Other:** Operating profit decreased slightly to $9.3 million from $10.1 million, primarily due to insurance recoveries recognized in the prior year period[187](index=187&type=chunk) [Liquidity and Capital Resources](index=58&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2020, the company had **total committed liquidity of $759.7 million**, including cash and available credit facilities[191](index=191&type=chunk) - In March 2020, the company redeemed its 2006 Secured Railcar Equipment Notes, using **$109.9 million in cash**[192](index=192&type=chunk) - For full-year 2020, the company anticipates a net investment in its lease fleet of **$350 million to $500 million**[200](index=200&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its market risks since year-end 2019 - There has been **no material change** in the company's market risks since December 31, 2019[212](index=212&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and procedures with no material changes to internal controls - The Chief Executive and Chief Financial Officers concluded that the company's **disclosure controls and procedures were effective** as of the end of the period[213](index=213&type=chunk) - **No material changes** in internal controls over financial reporting occurred during the quarter[214](index=214&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) This section references ongoing legal matters related to the company's highway products business - The company refers to Note 14 of the Consolidated Financial Statements for information on legal proceedings, which primarily concern **litigation related to its highway products**[110](index=110&type=chunk)[113](index=113&type=chunk)[216](index=216&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor was added to address the material adverse effects of the COVID-19 pandemic - A new risk factor was added to disclose that the **COVID-19 pandemic is likely to have a material adverse effect** on the company's operations, financial condition, and liquidity[217](index=217&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details its Q1 2020 share repurchase activities and remaining authorization Share Repurchases by Month (Q1 2020) | Period (2020) | Shares Purchased (Program) | Average Price Paid | Total Cost (Program) | | :--- | :--- | :--- | :--- | | **February** | 550,000 | $21.23 | ~$11.7M | | **March** | 1,300,000 | $18.25 | ~$23.7M | | **Q1 Total** | **1,850,000** | **-** | **~$35.4M** | [Exhibits](index=57&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including certifications and interactive data files - The report lists exhibits filed, including Amended and Restated Bylaws, CEO and CFO certifications under Sarbanes-Oxley, and **Inline XBRL documents**[224](index=224&type=chunk)

1Q 2020 – Earnings Conference Call Supplemental Material April 30, 2020 – based on financial results as of March 31, 2020 Investor Contact: TrinityInvestorRelations@trin.net Website: www.trin.net Forward Looking Statements Some statements in this presentation, which are not historical facts, are "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity's estimates, expectations, beliefs, intentions or strategi ...