Attached files
| file | filename |
|---|---|
| 8-K - 8-K - TRINITY INDUSTRIES INC | a11022016q3investorpresent.htm |
Trinity Industries, Inc.
Investor Presentation
November 2016
Investor Contact: TrinityInvestorRelations@trin.net
Website: www.trin.net
Exhibit 99.1
A Premiere Diversified Industrial Company
This presentation contains “forward looking statements” as defined by the Private Securities
Litigation Reform Act of 1995 and includes statements as to expectations, beliefs and future
financial performance, or assumptions underlying or concerning matters herein. These
statements that are not historical facts are forward looking. Readers are directed to Trinity’s
Form 10-K and other SEC filings for a description of certain of the business issues and risks, a
change in any of which could cause actual results or outcomes to differ materially from those
expressed in the forward looking statements. Any forward looking statement speaks only as of
the date on which such statement is made. Trinity undertakes no obligation to update any
forward looking statement or statements to reflect events or circumstances after the date on
which such statement is made.
2
Forward Looking Statements
A Premiere Diversified Industrial Company
Agenda
I. Overview
II. Key Investment Considerations
III. Strategy and Vision
IV. Financial Highlights
V. Appendix
3
A Premiere Diversified Industrial Company
• Trinity Industries, Inc. is a diversified industrial company that
owns a variety of market-leading businesses providing
products and services to the energy, transportation,
chemical, and construction sectors
• Trinity operates through five business segments:
• Rail Group
• Railcar Leasing and Management Services Group
(“Leasing”)
• Inland Barge Group
• Construction Products Group (“CPG”)
• Energy Equipment Group (“EEG”)
• The Company serves its customers through manufacturing
facilities located in the United States, Mexico, and Canada
and had approximately 19,230 employees at quarter end
September 30, 2016
• Total Revenue and EBITDA for the LTM 09/16 was $5.03
billion and $1.23 billion, respectively
4
I. Trinity Industries, Inc. Overview
External Revenue by Business Group(1)
All share and per share information has been retroactively adjusted to reflect
the 2-for-1 stock split effective in June 2014.
All Footnotes throughout the presentation are listed on Slide 27.
Rev
e
n
u
e
($mm)
(2)
E
P
S
A Premiere Diversified Industrial Company 5
II. Key Investment Considerations
Leading Market
Positions
Diversified Portfolio of
Businesses
Flexible and Cost-
Effective
Manufacturing
Seasoned Performers
Focused on
Enrichment Value
A Premiere Diversified Industrial Company
Rail Group Leading manufacturer of railcars
Leading manufacturer of railcar axles
Leading manufacturer of railcar coupling devices
Railcar Leasing and
Management Services
Group
Leading provider of railcar leasing and management
services
Inland Barge Group Leading manufacturer of inland barges and fiberglass
barge covers in the United States
Construction Products
Group
Leading full-line manufacturer of highway guardrail and
crash cushions in the United States
Leading producer and distributor of lightweight and
natural aggregates in the western and southwestern
United States
Energy Equipment
Group
Leading manufacturer of structural wind towers
Leading manufacturer of storage and distribution
containers and tank heads for pressure and non-
pressure vessels
Leading manufacturer of steel structures for electricity
transmission and distribution
6
Leading Market Positions in North America
A Premiere Diversified Industrial Company 7
Diversified Portfolio of Businesses
PRESENT (LTM 09/16) Elevating Our Financial Performance
Total Revenues = $5.0 B
PAST (FY 2000)
Total Revenues = $2.7 B Trinity’s long-term goal is to establish
sustainable earnings growth over economic
cycles.
All Footnotes throughout the presentation are listed on Slide 27.
Operating
Profit (1)
(2) (2)
Revenue
(2)
We strive to outperform prior cyclical peaks
with higher EPS and better returns, and raise
the earnings floor and improve balance sheet
strength during cyclical downturns. (2)
Operating
Profit (1)
Revenue
(3)
A Premiere Diversified Industrial Company 8
Flexible and Cost-Effective Manufacturing
In recent years, Trinity has invested in its manufacturing footprint to establish “multi-purpose”
facilities, enhancing its flexible manufacturing footprint.
Flexibility
Cost-Effective
Trinity's manufacturing flexibility
across products and business
segments enhances our ability to
opportunistically respond to
changes in market demand
Trinity’s manufacturing scale,
vertical integration, and presence
in the Southern U.S. and Mexico
provides cost effective benefits
across multiple business
segments
A Premiere Diversified Industrial Company 9
Focused on Enrichment Value
Ex
te
rn
al
R
ep
o
rt
in
g
G
rou
p
s
Ope
ra
tio
n
al
F
ocu
s
A
re
as
Rail Leasing Construction Energy Inland Barge
Customer
Sharing
Internal
Component
Sourcing
Shared Best
Manufacturing
Practices
Facility
Optimization
Centralized
Cost Savings
Trinity focuses on
collaboration across
business segments…
…generating synergies
that enhance value and
ultimately provide
competitive benefits
A Premiere Diversified Industrial Company
Incorporated in 1933 with a strong corporate culture and commitment to Company values
Seasoned management team knows how to assess the market, proactively plan for cycles
and quickly adapt to changing market conditions
Cost-effective and flexible manufacturing footprint in the Southern United States and
Mexico is a competitive advantage for many of our product lines
Significant liquidity position of approximately $2.11 billion and a strong balance sheet at
quarter end September 30, 2016
Track record of maintaining a healthy liquidity position across the business cycle;
“investment-grade” credit ratings from two of the three principal rating agencies
S&P – Rating of “BBB-” with an Outlook of “Stable”
Fitch – Rating of “BBB-” with an Outlook of “Stable”
Moody’s – Rating of “Ba1” with an Outlook of “Stable”
10
Seasoned Performer Across Market Conditions
A Premiere Diversified Industrial Company 11
III. Strategy and Vision: Operational
Strategically Grow the Lease Fleet
Selectively Build our Backlogs
Diversify Through Organic Growth
Acquire Complementary Product Portfolios
Be a premier, diversified industrial company
that generates superior earnings and returns
for shareholders
Maximize Manufacturing Efficiency
A Premiere Diversified Industrial Company 12
Strategy and Vision: Financial
Maintain a
conservative and
liquid balance
sheet to be
attractively
positioned to
capitalize on
opportunities
Working Capital
Capital
Expenditures
Acquisitions
Shareholder
Distributions
Cash, Cash Equivalents,
& Short Term Marketable Securities $843
Corporate Revolver Availability 507
Warehouse Availability 763
Total Available Liquidity $2,113 mm
Balance Sheet Debt ~ $3.2 B (1)
Available Liquidity ~ $2.1 B
Equity ~ $4.3 B
Recourse Debt
Senior Notes (1) $400
Convertible Subordinated Notes(1) 449
Capital Leasing Obligations(1) 33
Total Recourse $882 mm
Non-Recourse Leasing Debt(2)
Warehouse Facility(1) $237
Long-term Financings:
Wholly-Owned(1) 656
Partially-Owned(1) 1,394
Total Non-Recourse Leasing $2,287 mm
As of 09/30/16
All Footnotes throughout the presentation are listed on Slide 27.
A Premiere Diversified Industrial Company 13
Strategy and Vision: RIV Platform
▪ Railcar Investment Vehicles, or “RIVs”, are customized portfolios of leased
railcars for institutional investors and other entities that are developed and
managed by TrinityRail
▪ TrinityRail is the first in the industry to create a platform of RIVs for
institutional investors. Since FY 2006, we have placed approximately $5.1
billion to various RIVs (1), including proceeds of $172 million of leased
railcar sales to RIVs in FY 2016
▪ Institutional investors continue to invest in RIVs developed and managed by
TrinityRail because of the scale and diversity of our products and services,
the strength of our commercial relationships, our “cradle to grave” asset
expertise, and our track record of value-creating investments
All Footnotes throughout the presentation are listed on Slide 27.
A Premiere Diversified Industrial Company 14
IV. Financial Highlights
Trinity’s EPS Summary FY 2008 – LTM 09/16(3)
LTM 09/16 vs. LTM 09/15(1):
Revenues decreased 22.7% to $5.03 billion from
$6.51 billion
Operating profit decreased 33.0% to $810.1 million
from $1.21 billion
(2)
EBITDA decreased 25.0% to $1.23 billion from
$1.64 billion
Earnings per common diluted share decreased
32.8% to $3.11 from $4.63 per diluted share
Trinity’s EBITDA Summary FY 2008 – LTM 09/16(6)
All Footnotes throughout the presentation are listed on Slide 27.
(4) (5)
A Premiere Diversified Industrial Company 15
Guidance and Outlook (As of October 27, 2016)
Total Company
EPS ~ $0.30 - $0.40 in Q4 2016 / $2.10 - $2.20 in FY 2016
~ $0.45 - $0.60 in First Half of FY 2017 (excludes profit from Leased Railcar Sales)
Manufacturing and Corporate Capital Expenditures ~ $120 - $140mm in FY 2016
Elimination Impact of Net Income Attributable to Noncontrolling Interest ~ $4mm in Q4 2016
Rail Group
Revenues ~ $800mm in Q4 2016
OP Margin ~ 13% in Q4 2016 / 14.5% in FY 2016
Shipments ~ 27,000 in FY 2016 / 7,200 in Q4 2016 / 7,000 – 8,000 in First Half of FY 2017
Leasing Group
Revenues from Operations ~ $175mm in Q4 2016
OP from Operations ~ $80mm in Q4 2016
Revenue Eliminations ~ $280mm in Q4 2016
OP Elimination Impact ~ $42mm in Q4 2016
Gross Cash Investment in Lease Fleet ~ $845mm in FY 2016
Total Proceeds from Leased Railcar Sales of $172mm in FY 2016
Inland Barge Group
Revenues ~ $75mm in Q4 2016
OP Margin ~ 8% in Q4 2016
Construction Products Group
Revenues ~ $115mm in Q4 2016
OP Margin ~ 5.5% in Q4 2016
Energy Equipment Group
Revenues ~ $275mm in Q4 2016
OP Margin ~ 10.5% in Q4 2016
Any forward-looking statements made by the Company speak only as of the date on which they are made. The Company is under no obligation to, and expressly
disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise.
A Premiere Diversified Industrial Company 16
Appendix:
Operating Business Summaries
A Premiere Diversified Industrial Company 17
Rail Group
Business Conditions/Demand Outlook
Market Positioning Current Performance(4)
Rail Group Revenues and OP Margin (1)
Leading manufacturer of railcars, railcar axles, and coupling
devices in North America
Broadest product offering for railcar manufacturing in North
America
Networking of customers between railcar sales and railcar
leasing
Focus on new and advanced engineering designs
Centralized sourcing provides cost savings
Streamlined manufacturing efficiencies
Trinity delivered 28,640 railcars representing 42% of industry
shipments during LTM 09/16; Trinity received orders for 8,245
railcars representing 29% of the industry total during LTM
09/16
Trinity’s $3.7 billion order backlog of 34,870 railcars accounts
for 45% of industry backlog as of 09/16 and includes a broad
mix of railcar types across many industrial sectors extending
into 2021
Reducing production footprint and throughput to align with
lower market demand and converting production lines to
accommodate the significant shift in product mix for 2016
All Footnotes throughout the presentation are listed on Slide 27.
(2)
A Premiere Diversified Industrial Company 18
Railcar Leasing & Management Services Group
Business Conditions/Demand Outlook
Market Positioning Current Performance
Leading provider of comprehensive railcar leasing and
management services
Marketed with railcar sales activities as TrinityRail®
Provider of operating leases offering ‘one stop shopping’
for TrinityRail shipping customers
Scale of operations facilitates active participation in
secondary market activities to create railcar investment
vehicles and asset management services for institutional
investors
Lease rates for renewals and assignments are highly competitive and, in
general, reflect overall rate declines with certain markets more
pressured; maintained fleet utilization at 97.1% as of September 30,
2016
Total proceeds from the sales of leased railcars to institutional investors
were $919.5 million during FY 2015 and $171.9 million during FY 2016
year to date
Total leased railcars under management, including railcars sold to
institutional investors was approximately 102,000 as of September 30,
2016
Backlog of railcars dedicated to lease fleet totaled $1.0 billion at
September 2016 and underscores the expected continued growth in
our railcar lease fleet platform
Leasing Operating Revenues and Profit (Excludes Car Sales)(3)
All Footnotes throughout the presentation are listed on Slide 27.
Growth in Trinity’s
Lease Fleet
since 2000
(1) (2)
A Premiere Diversified Industrial Company 19
Inland Barge Group
Business Conditions/Demand Outlook
Market Positioning Current Performance
Inland Barge Group Revenues and OP Margin
Leading manufacturer of inland barges and fiberglass barge
covers in the United States
Multiple barge manufacturing facilities on inland waterways
enable rapid delivery
Operating flexibility is a key differentiator
Barge transportation has a cost advantage in high-cost fuel
environments
Revenues down 29.4% in LTM 09/16 vs. LTM 09/15 as a
result of lower barge deliveries and product mix changes;
backlog at 09/30/2016 was $177 million
Profit margin expectations of approximately 11% in 2016
are lower as a result of competitive market dynamics
compared to recent years
Investments made over the past decade have increased the
Barge segment’s production efficiencies and enhanced its
production flexibility positioning the business to respond
effectively as market demand changes
Current inquiry levels reflect historically low barge demand leading
to significantly lower manufacturing levels expected in the near
term when compared to the past few years
Replacement demand driver (as of 12/31/15):(4)
3,533 out of 18,341 hopper barges, or approximately 19%, are
greater than 20 years old
930 out of 3,670 tank barges, or approximately 25%, are greater
than 20 years old
From 2000 to 2014, the industry had a build-to-scrap ratio of 0.8x; in
2015 the ratio was 2.5x
All Footnotes throughout the presentation are listed on Slide 27.
(1) (2) (3)
($mm)
A Premiere Diversified Industrial Company 20
Construction Products Group
Business Conditions/Demand Outlook
Market Positioning Current Performance
Construction Products Group Revenues and OP Margin (1)
Leading U.S. manufacturer of highway guardrail, crash
cushions, and other protective barriers
Leading producer and distributor of lightweight and natural
aggregates in the western and southwestern United States
Diversified exposure to commercial, residential, industrial,
and highway markets
Demand tied to the North American infrastructure build out
and federal funding
Operating Profit increased 34.6% respectively in LTM 09/16
vs. LTM 09/15 as a result of higher acquisition related
volumes in our Aggregates business and improved
manufacturing efficiencies in our Highway Products business,
partially offset by lower volumes in the highway products
business
Portfolio repositioning activities include an asset swap of the
Company’s concrete business for the lightweight aggregates
business in Q1 2013, the acquisition of the trench shoring
business in Q4 2012 and three additional lightweight
aggregate facilities in Q1 2015, and the divestiture of the
galvanizing business in Q2 2015
Fixing America’s Surface Transportation ACT (FAST) passed
in December 2015 and authorized a five-year funding bill
of $305 billion for highways and other related transit
programs, providing much needed stability for public
agencies charged with planning transportation projects
Robust demand for aggregates in the southwestern U.S.
market due to residential and non-residential investment
Committed to finding opportunities to expand our product
portfolio and grow our aggregates market position
All Footnotes throughout the presentation are listed on Slide 27.
(2)
($mm)
A Premiere Diversified Industrial Company 21
Energy Equipment Group
Business Conditions/Demand Outlook
Market Positioning Current Performance
Energy Equipment Group Revenues and OP Margin
Leading manufacturer of wind towers, steel utility
structures, storage and distribution containers and tank
heads for pressure and non-pressure vessels, and cryogenic
transportation equipment used to store and transport
liquefied gases in North America
Low-cost manufacturer with principal storage container
production in prime energy market locations
Wind Towers:
Backlog of $1.04 billion as of 09/30/16 provides solid visibility over
our planned production in 2016
In May 2016, Trinity received an order to manufacture $940
million of wind towers. Trinity is expected to deliver these wind
towers during a three-year period beginning in 2017.
Total Business Segment:
Operating Profit Margin improved on a lower revenue run rate
due to higher sales volume and efficiencies in the wind towers
business, offset by lower volumes in the storage container and
utility towers businesses
Recent five-year spending bill passed by the federal
government in December 2015 included a tax incentive for
wind power energy through 2019; the multi-year incentive
provides developers the necessary stable planning environment
to develop wind projects
The current market for utility structures is competitive; long-
term demand fundamentals remain positive due to expected
future growth in investment spending, especially connecting
renewable energy to the grid due to the production tax credit
The storage container industry is highly competitive and
experiencing pricing pressure from current market conditions;
long-term demand fundamentals are positive given the
significant investment by chemical companies along the Gulf
($mm)
A Premiere Diversified Industrial Company 22
How TrinityRail’s RIV platform works
Sources of Railcars for TrinityRail’s RIV platform
Newly built leased railcars from TrinityRail
Railcars acquired in secondary market
Railcars from TrinityRail’s Wholly-Owned
Fleet (i.e., “Reservoir of railcars”)
TrinityRail’s Managed Fleet
TrinityRail’s RIV platform
▪ Since FY 2006, we have
placed approximately
$5.1 billion to various
RIVs(1)
All Footnotes throughout the presentation are listed on Slide 27.
A Premiere Diversified Industrial Company 23
Value proposition for institutional investors
▪ Railcars are a critical component
of North America’s
transportation infrastructure,
transporting a diverse range of
commodities, intermediate
goods, and finished products
▪ Stable, hard asset investments
with attractive returns and an
inflationary hedge component
▪ Long-lived assets with an average
useful life of ~35-40 years
▪ Long term shift of railcar
ownership from shippers &
railroads towards third party
lessors like TrinityRail
Why invest in leased railcars? Why align with TrinityRail?
▪ Scale and diversity of railcar manufacturing
– Largest manufacturer of railcars in North
America
– Most diversified railcar product line available
in North America
▪ Strength and breadth of commercial
relationships
– Currently responsible for the leasing and
management of approximately 102,000
railcars
▪ “Cradle to grave” asset expertise including
engineering, manufacturing, maintenance
services, leasing and management services
▪ Integrated business model that provides market
intelligence on the markets we serve and our
customers’ ongoing needs
▪ Track record of executing value-creating
transactions with sophisticated institutional
partners
A Premiere Diversified Industrial Company 24
Value proposition for Trinity
▪ Enhances our ability to meet the needs
of large customers
▪ Provides financial capacity to enhance
lease origination capabilities and expand
lease portfolio funding diversification
▪ Increases size of managed fleet,
generating recurring management fees
while allowing us to maintain close
relationships with the end users of the
railcars
▪ Further develops Trinity Industries
Leasing Company brand as premier
asset manager
TrinityRail Trinity Industries
▪ Provides Trinity with a level of financial
flexibility that is unique among diversified
industrial companies
▪ Enhances our ability to reinvest in our
railcar leasing and management services
platform, our portfolio of diversified
industrial businesses, and in other
opportunities that enhance shareholder
returns
▪ Diversifies earnings base by expanding
position in value chain
▪ Potential for additional income through
profits recognized at time of sale and, in
addition, management fees earned over
the longer term
A Premiere Diversified Industrial Company 25
Reconciliation of EBITDA (1) (in millions)
“EBITDA” is defined as income (loss) from continuing operations plus interest expense, income taxes, and depreciation and amortization
including goodwill impairment charges. EBITDA is not a calculation based on generally accepted accounting principles. The amounts
included in the EBITDA calculation, however, are derived from amounts included in the historical statements of operations data. In
addition, EBITDA should not be considered as an alternative to net income or operating income as an indicator of our operating
performance, or as an alternative to operating cash flows as a measure of liquidity. We believe EBITDA assists investors in comparing a
company’s performance on a consistent basis without regard to depreciation and amortization, which can vary significantly depending
upon many factors. However, the EBITDA measure presented in this presentation may not always be comparable to similarly titled
measures by other companies due to differences in the components of the calculation.
(1) EBITDA for previous years has been adjusted as a result of the divestiture of the Company’s Concrete business
(2) Includes results of operations related to TRIP starting January 1, 2010
(2)
2008 2009 2010 2011 2012 2013 2014 2015 LTM 09/16
Income (loss) from continuing operations $266.8 ($140.8) $69.4 $146.8 $251.9 $386.1 $709.3 $826.0 $494.5
Add:
Interest expense 109.4 123.1 182.1 185.3 194.7 187.3 193.4 194.7 182.6
Provision/(Benefit) for income taxes 163.5 (11.5) 37.3 92.2 134.0 204.4 354.8 426.0 271.0
Depreciation & amortization expense 126.8 147.1 180.9 187.7 193.7 211.5 244.6 266.4 279.1
G dwill impairment - 325.0 - - - - - - -
Earnings from continuing operations
before interest expense, income
taxes, and depreciation and
amortization expense $666.5 $442.9 $469.7 $612.0 $774.3 $989.3 $1,502.1 $1,713.1 $1,227.2
A Premiere Diversified Industrial Company 26
Reconciliation of PBT Margin –
Railcar Leasing and Management Services Group
(in millions except for PBT Margin)
2008 2009 2010 2011 2012 2013 2014 2015 LTM 09/16
From Leasing Operations:
Revenue 314$ 329$ 461$ 493$ 529$ 587$ 632$ 700$ 702$
Ope ating Profit 124$ 129$ 200$ 225$ 243$ 267$ 288$ 331$ 301$
Less: Interest Expense (67) (80) (139) (161) (174) (157) (153) (139) (126)
Profit Before Tax (PBT) 57$ 48$ 62$ 64$ 68$ 110$ 135$ 192$ 175$
PBT Margin 18% 15% 13% 13% 13% 19% 21% 27% 25%
A Premiere Diversified Industrial Company
Slide 4
(1) Intersegment Revenues are eliminated and Leasing Revenues include revenues related to TRIP Holdings beginning in FY 2010; CPG Revenues for prior years have also been adjusted as a result of the divestiture of its Concrete business
in March 2013
(2) FY 2009 EPS excludes a $325 million pretax Goodwill impairment amounting to $1.57 per share; reported FY 2009 EPS was $(0.91)
Slide 7
(1) Operating Profit Excludes All Other, Corporate and is reduced by Leasing Interest Expense of $7 million in FY 2000 and $126 million in LTM 09/16
(2) Rail percentage represents Operating Profit less all Intersegment Company Eliminations; Leasing percentage represents Operating Profit less Leasing Interest Expense
(3) FY 2009 EPS excludes a $325 million pretax Goodwill impairment amounting to $1.57 per share; reported FY 2009 EPS was $(0.91)
Slide 12
(1) Excludes unamortized discount and/or unamortized debt issuance costs
(2) Leasing railcar equipment has a net book value of $5.6 billion, excluding deferred profit and including partially-owned subsidiaries
Slides 13 and 22
(1) Based on value of leased railcars at time of sale
Slide 14
(1) LTM 09/16 vs. LTM 09/15, all numbers on a Continuing Operations basis except for EPS, which reflects Total Company EPS
(2) Operating Profit includes Leasing Interest Expense
(3) EPS is for Total Company, including Discontinued Operations; LTM 09/16 per share amount consists of sum of individual quarters
(4) Excludes $325mm pre-tax impact of impairment of Goodwill amounting to $1.57 per share; reported FY 2009 EPS was $(0.91)
(5) Beginning in FY 2010, TRIP Holdings Revenues and Operating Profit were consolidated with the Leasing Group
(6) See Note in Appendix pg. 25 for Reconciliation of EBITDA; EBITDA for previous years has been adjusted as a result of the divestiture of the Company’s Concrete business
Slide 17
(1) Before eliminations for Intersegment Sales to Leasing and Intercompany Profit
(2) Excludes $325mm pretax charge for impairment of Goodwill; reported FY 2009 operating loss margin was 39.8%
(3) Sources: Historical data as reported per the Railway Supply Institute. 2016-2020 projections are an average of estimates provided by Global Insight (10/16) and Economic Planning Associates, Inc. (06/16) and are provided as a point of
reference
(4) Source: Industry total as reported per the Railway Supply Institute’s American Railway Car Institute Committee (ARCI)
Slide 18
(1) Includes TRIP Holdings starting in 2007
(2) Includes Partially-Owned Subsidiaries
(3) Operations Margin calculated using only revenues and profit from Leasing Operations including Partially Owned Subsidiaries and excludes Car Sales; PBT Margin calculated using Operating Profit from Leasing Operations less Leasing
Interest Expense
Slide 19
(1) OP Margin excludes a $5.1mm net gain due to flood-related insurance settlements; reported OP margin 16.3%
(2) OP Margin excludes a $15.5 mm net gain due to flood-related insurance settlements; reported OP margin 19.4%
(3) OP Margin excludes a $3.8 mm net gain due to flood-related insurance settlements and the sale of leased barges; reported OP margin 18.5%
(4) Informa Economics (03/2016)
Slide 20
(1) Revenues and OP Margin in prior years have been adjusted as a result of the divestiture of the Concrete business in March 2013
(2) Acquired Quixote Corporation in February 2010 which increased Highway Products revenue by 31% during 2010
27
Footnotes