Good day, everyone, and welcome to today's program. Before we get started, let me remind you that today’s conference call contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995 and includes statements as to estimates, expectations, intentions, and predictions of future financial performance. Statements that are not historical facts are forward-looking. Participants 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. It is now my pleasure to turn the conference over to Ms. Gail Peck. Please go ahead.

Thank you, Keith. Good morning, everyone. Welcome to the Trinity Industries' Second Quarter 2014 Results Conference Call. I'm Gail Peck, Vice President, Finance and Treasurer of Trinity. Thank you for joining us today. Following the introduction, you will hear from Tim Wallace, our Chairman and Chief Executive Officer and President. After Tim, our business group leaders will provide overviews of the businesses within their respective groups. Our speakers are: Bill McWhirter, Senior Vice President and Group President of the Construction Products, Energy Equipment and Inland Barge Group; and Steve Menzies, Senior Vice President and Group President of the Rail and Railcar Leasing Groups. Following their comments, James Perry, our Senior Vice President and Chief Financial Officer, will provide the financial summary and guidance. We will then move to the Q&A session. Mary Henderson, our Vice President and Chief Accounting Officer, is also in the room with us today. I will now turn the call over to Tim Wallace for his comments.

Thank you, Gail, and good morning, everyone. I'm pleased with our financial results for the second quarter. Our businesses continue to do an outstanding job of driving operating leverage and efficiencies to the bottom line. We're also continuing to make great progress in the business development area. In late June, we announced an agreement to purchase assets of Meyer Steel Structures from Thomas & Betts Corporation. This transaction demonstrates our commitment to strengthening our portfolio of diversified industrial companies. Our Rail Group generated strong financial results in the second quarter and increased its order backlog to a new record level. Our rail businesses continue to make investments that expand our operating flexibility and capacity to respond to various market conditions. Our Railcar Leasing and Management Services Group delivered another quarter of solid operating results. In addition, this group continued to execute railcar transactions that enhanced profitability and generated cash. I'm pleased with our Inland Barge Group's financial performance during the second quarter. The profitability of our Construction Products Group improved during the second quarter compared to the same period last year. Our Energy Equipment Group continues to show improved financial performance. I'm pleased with the progress we're making in integrating the 3 businesses we acquired in the first quarter. We're optimistic about the long-term opportunities for growth in the cryogenic industry. Trinity remains uniquely positioned to provide a variety of transportation and storage products to the oil, gas and chemicals industries. We complete -- once we complete our acquisition of Meyer, Trinity's utility structure business will be positioned as a leader in this industry. We're continuing to review acquisition opportunities in the energy and infrastructure markets and have products -- that have products, services, technology and competencies that will enrich our portfolio of industrial manufacturing businesses. Trinity's financial performance during the second quarter, along with our pending acquisition of Meyer, represents additional progress toward attaining our corporate vision of being a premier diversified industrial company. Over the short-term, our goals are to continue operating our company on lean principles while providing superior products and services to our customers. We are focused on creating shareholder value through a variety of organic improvement and growth initiatives, as well as identifying manufacturing acquisition opportunities. We expect to continue to conduct Railcar Leasing and other asset transactions that provide earnings and generate cash. Trinity's future remains bright. Our financial health is strong and we have a great deal of positive momentum occurring within our company. I'll now turn it over to Bill for his comments.

Thank you, Tim, and good morning, everyone. We are pleased with the recently announced agreement to purchase the assets of Meyer Steel Structures, which is proceeding through the regulatory review process and is expected to close in the third quarter pending approval. The acquisition of Meyer provides Trinity a market-leading position in the North American utility steel structures market. Meyer's strong engineering reputation, manufacturing capabilities and products with high steel content align well with Trinity's existing competencies and offer enrichment opportunities to create additional value. We are optimistic about the long-term outlook with infrastructure investment in North America for electricity transmission and distribution. Reliability concerns, increasing need for renewable energy interconnections, congestion and government oversight are all-important long-term demand drivers. Over the next decade, we also expect Mexico will continue to develop and expand its infrastructure. Combining Meyer with Trinity's existing capabilities, positions us well to serve this market. During the second quarter, the Energy Equipment Group set another record for quarterly revenue and increased its operating profit by 98% over the second quarter last year. Revenues and profits increased primarily due to higher shipments of storage containers serving the energy sector, as well as higher deliveries and improved operational performance in our wind tower business. During the quarter, we received $213 million in wind tower orders, resulting in a backlog of $611 million at the end of the quarter. Our production visibility in wind tower business now extends into 2016. I am pleased with the progress we are making integrating our recently acquired companies within this group. We continue to invest resources to identify and pursue opportunities to add new businesses to our industrial portfolio and expand our reach in the markets we are pursuing, enhance our competencies and complement our product offerings. Moving to our Construction Products Group.…

Thank you, Bill. Good morning. I'm very pleased with the strong momentum in Rail and Leasing Groups. Our focus and execution continued to enhance Trinity rail's position, as a premier provider of railcar products and services, and are responsible for our record financial performance during the second quarter. This is a very exciting time for TrinityRail. Railcar demand is broadening, fleet replacement opportunities are beginning to materialize and demand catalysts from the North American energy renaissance remains strong. Our business is growing and our integrated manufacturing and leasing platforms are responding effectively to increasing railcar demand. North American industry railcar orders in the quarter were very strong and reflected a particularly healthy mix of freight car orders. The 33,900 rail cars ordered during the second quarter drove the industry backlog to its highest level in the last 25 years. The current backlog approximates 100,000 rail cars, representing approximately 6 quarters of industry production of current rates. During the second quarter, TrinityRail received orders for 9,880 new rail cars including tank cars, covered hoppers and auto racks, with orders received from railroads, third-party lessors and industrial shippers. Our orders during the quarter aligned very well with our production plans. Our backlog increased to 45,350 rail cars with a record value of approximately $5.5 billion. Order inquiry levels continue to be steady thus far in the third quarter and reflect continuing demand for a wide variety of freight cars. Order inquiries for tank cars remain steady with some order activity for tank cars for flammable commodity service is on hold pending new regulatory standards. However, with extended production backlogs, some customers are beginning to place orders with us recognizing that with our production flexibility we're able to amend our tank car buildings specifications to the most current regulatory standards at the time…

Thank you, Steve, and good morning, everyone. Yesterday, we announced strong results for the second quarter of 2014 with revenue of nearly $1.5 billion and earnings per share of $1.01, compared with our revenues and EPS of $1.1 billion and $0.52 during the second quarter of 2013. Please recall that we completed a 2-for-1 stock split in June, so all figures have been adjusted accordingly. Our tax rate for the second quarter was 32.6%, which was lower than the guidance of 34% for the final 3 quarters of 2014 that we provided on our last conference call. This was primarily due to the benefits of certain domestic, manufacturing deductions, lower state taxes and the partnership tax status of our noncontrolling interest. The company's convertible notes had a dilutive impact of $0.04 to EPS during the second quarter. Please refer to the EPS schedule provided in our press release yesterday for the dilution calculation. In the second quarter, we reported approximately $2 million of one-time costs at the corporate level related to the pending asset purchase of Meyer Steel Structures, which we expect to close during the third quarter. During the second quarter, we also announced the successful completion of the $1.1 billion leasing joint venture initially formed in May of 2013. The joint ventures acquisition of approximately $388 million worth of railcars substantially utilized all of the remaining equity capital that was committed last year by TILC and our coinvestors, including [indiscernible] performed RIV 2013 and complete the recapitalization of TRIP. Our partially owned subsidiaries, RIV 2013 and TRIP, now own a combined portfolio of approximately $2 billion in leased railcars. During the second quarter we repurchased 63,600 shares of our common stock in the open market for a total cost of $2.5 million. Year-to-date, we have repurchased $12.5 million…

[Operator Instructions] And we'll take our first question from Allison Poliniak with Wells Fargo.

Just going back to the comments on maintenance, if I remember correctly, your prior shops were mainly committed to your leasing business. It sounds like the newer ones are not, could you just give me a little color and if that's sort of a little bit of a change for you guys?

Steve?

Allison, our maintenance services business has been principally focused on our leased fleet, as our leased fleet has grown, our maintenance requirement continue to grow as well. So we are looking at the long-term demand characteristics of our fleet and positioning our maintenance services facility to be able to support that, to the extent that we have additional capacity and scheduling permits we want to be able to support key industrial shippers in that business as well.

Okay. That's great. And then on the capacity question, Steve you mentioned that we're in new territory in terms of deliveries. Do you guys still have enough -- I know it's obviously, a fluid question, depending on what's being asked to produce, but is there still opportunities that for you guys to increase capacity on the rail side if need be?

Allison, Steve, again. Yes, obviously, for competitive reasons, we don't want to discuss our plans and specifics of manufacturing capacity, but I think we've demonstrated that our capacity is very flexible and can be shifted across our business portfolio of products not just within rail as well. So I'm confident that as we continue to assess demand characteristics, we have adequate capacity to be able to respond.

Great. And then, just last on the barge, you talked a little bit about hoping that mix is changing and hoppers are coming back and are you starting to see that now? And then, I guess, just on the margin side, what kind of headwinds are we expecting for it to drop so meaningfully for the balance of the year?

Yes, Allison. This is Bill. So I think on the inquiry side, we're feeling very good about the general inquiry nature on the hopper side of the business, particularly as we mentioned, both -- scrap prices are up. There's a lot of movement of corn, wheat and soybeans. The harvest once again looks good and we are seeing an uptick and even coal moving as well, so overall it looks good. As we said on the margin side, it's always a function of product mix, so it's -- so what barges are you building in any one particular quarter as well as the conditions at which time those orders were taken. So can't get into a lot of specifics associated with that, but the back half margin a little lower than the front half margin.

And we'll take the next question from Steve Barger with Keybanc Capital Markets.

Bigger picture question first. Tim, will your management team models out the infrastructure build dollars coming into transportation and storage products that you either can participate in or hope to get involved with, can you quantify the size of those opportunities you see in dollars and talk about how you think about end market visibility in terms of years?

No. We can't quantify the dollars, but what we do is we look at the various businesses that we have in our portfolio and each of our business leaders looks at it from an ecosphere point of view and tries to identify the business opportunities that are in front of them and then we get together and talk about the entire industry spectrum, and the products that are in those spectrums that we could potentially manufacture and then the companies that are in that, that manufacture those products and we look at it on an industry in a market by market case, tied back to our businesses and then we look at how they overlap with the other businesses that we have from a manufacturing flexibility point of view. So that's more or less the basis of what our strategic planning and growth process looks like.

Well, you've done the cryogenic acquisitions and now you're pursuing -- you announced the Meyer deal. Looking forward to other acquisitions in those specific spaces or should we expect to see a broader product build out? How are you thinking about the opportunities in front of you?

Well, we're really an opportunistic company, and it's a matter of businesses that are up for sale or in the marketplace is one group that we look at. And then, it's also businesses that we planted seeds with over a period of time that would begin to harvest as far as the idea of us acquiring them, and/or a lot of networking and relationships that we have, so it's very opportunistic and it also is tied to the quality of the fit of the particular business within our portfolio.

Steve, are you seeing customers come to you placing multi-year or blanket orders or are the inquiries and orders coming in bigger blocks, giving whether it's the regulatory changes or what looks like increasing demand for freight cars?

Steve, yes, we have customers, who want to look at their long-term purchases, particularly with extended backlogs, I think that's becoming a little more prevalent historically, if you get a rail car in 6, 9, 12 months. That's not the case now, so it forces customers to look more long-term. Certainly, we'll entertain long-term agreements to the extent they make sense and they have proper pricing mechanisms and hedges towards rising costs.

And given the increasing volume of freight orders, are you seeing pricing starting to firm up on that side of the business?

Absolutely, as I mention, we've got a backlog of -- the industry backlogs a little over 6 quarters in freight car production and fairly wide swaths of rail car types and truly we're seeing pricing firming and increasing as those backlogs extend. There are really no existing idle cars available today. I think the AAR reported their idle count as the lowest it's been since they started taking account. So all that bodes very well for good strong pricing environment.

Got it. And last question for you, James. When I look at your balance sheet, your net cash on the manufacturing side, very conservatively levered on the leasing side, as you mentioned you're going to be generating a lot of operating cash flow. I know Trinity will continue to look for acquisitions, but do you see anything out there trading at a more attractive multiple than your own stock and should we expect you to remain active on the buyback?

Well, I think, as I said in my script, and this is James P, thanks for the question. We look at capital allocation on a quarter-by-quarter annual basis with our Board of Directors as well. We're looking at a lot of organic investment with the manufacturing CapEx we have of $250 million, $300 million. We've been active in the stock buyback over the last year or so, we've raised our dividend multiple times and we've clearly been active on the acquisition side. But to your point, we do have a lot of cash on the balance sheet. We continue to generate cash flow, we will use some of that with the Meyer acquisition, the cash on hand, but we do continue to have a very strong balance sheet to pursue all of the above type strategies as we see opportunities.

And we'll take our next question from Justin Long with Stephens.

Over the first half of the year, the rail car order environment was clearly very strong, but I was curious as you look into the second half, do you have confidence that the industry backlog can continue to build from these levels just based on the inquiry levels that you're seeing in the market today or do you think there's a chance we could see a little bit of a pause in order flow?

Steve?

Justin, this is Steve. As I said in my script, we're seeing very steady order inquiry levels of both tank and freight cars coming into the third quarter. I look long-term as the fundamentals from the energy renaissance. I look at the broader markets and then see a continuing strong demand. Short of geopolitical events, which obviously, we don't control, I would expect we're going to continue to operate in a strong rail car environment.

Okay, great. That's helpful. And I know you guys won't give guidance on 2015 yet, but just high level, if I look, you have 45,000 railcars in your backlog today. At this point, do you feel like you have enough visibility to say that your deliveries will be directionally higher next year?

Justin, this is James. I'll take that one. We clearly do have the strong backlog across our business lines. We have about $6.5 billion when you combine the backlogs in the major business that we disclose, that does give us this visibility well into 2015, and beyond in certain product lines, we're not in a position at this time to give direction on our production levels in our different business services or earning levels. But as Tim said, we do have positive momentum. The investments we have been making are resulting in nice margins. We continue to have good order inquiries and orders come through in the businesses. So we do look forward to later as we move along providing more insight into 2015 and '16, but for now, we're focused on our guidance for 2014.

Okay, fair enough. And then, one last one from me, if you don't mind. I wanted to ask about the Meyer acquisition. Is there any detail you can provide in terms of the margin profile of this business and the earnings impact you expect once maybe on an annual basis once this is closed. And then along those lines anything you could speak to in terms of the synergy opportunity as well would be helpful.

James?

Sure, this is James, Justin. One thing we did disclose in our press release previously is the revenue run rate for 2014 for Meyer on a standalone basis. It was about $325 million. We're not able to provide any margin guidance at this point, I'll mention a couple of things, one is we need to finish the acquisition during the third quarter for that business. As we look at enrichment opportunities, we do believe they will be there flowing both ways between our companies. We'll also point out and will disclose later in the years, we're able to close the acquisition, but accounting adjustments we need to make through purchase price accounting and so forth. So historically, the businesses had healthy margins, we believe in that going forward, but as Bill said, there's a lot of demand drivers there that we'll get our arms around as we absorb the business.

Okay, great. And then, maybe on the synergy opportunity, anything you could speak to there, just high level?

We really can't provide you any specific what you would call synergies, we really use the term enrichment in our culture, more Justin, as we look at everything from the customer base, the manufacturing requirements to the steel and those kinds of things. So we'll provide what we can as we go along, we'll determine what level of guidance we can provide as we make the acquisition.

We'll take our next question from Bascome Majors with Susquehanna Financial Group.

So we finally got U.S. safety regulations at least in draft form about the flammable liquids by rail and movements and tank car standards, and that gives you at least some incremental clarity, of which tank car upgrades are going to be required and how long you will have to make those, if you want to keep those cars and crude ethanol unit train service. How are you approaching the replaced versus retrofit decision in your own lease fleet today? And how is that going to differ between whether this is a "legacy DOT-111 car or a newer CPC-1232 car?" And if there's any differentiation between how you're approaching a jacket versus non-jacket car? Please point that out to as well.

Steve, do you want to take that?

Yes, sure. I don't know that I share your insight that we have great clarity following the announcements from Transport Canada, if anything I think there's perhaps even more uncertainty. The conflicts, this obvious conflicts between the 2 regulatory bodies, so I think we have much to learn. We have dedicated resources that are deep in analysis and study of this. Obviously, we have cars that will be impacted. We have cars in flammable service today and we're positioning ourselves to be able to respond to building the new specifications. We've been investing in doing our prototyping and analysis, so I feel we'll be very well prepared for whatever the outcomes are, but the announcements in the last few weeks, I didn't think brought any really great clarity to the process. As far as retrofit and scrapping, we're going to do analysis on that, so much it depends upon the age of the car, it depends upon the lease terms that we have and so there's quite a bit of analysis that needs to be done once we understand what the new performance standards are and what the specifications are that we have to make.

Okay. And following up on an earlier question just from a high-level, looking from here to 2015, I know you don't want to give specific guidance, but as to estimates from the Street out there, implying that earnings and EBITDA are going to be down year-over-year, which certainly is at odds with the momentum you seem to be seeing in your business and the visibility you have today. I mean is there any help or things you could point out that could cause a -- or what are you concerned about that, that might cause a weaker 2015 versus 2014, just so we can have that on our radar?

So Bascome, this is James. I'm not sure I'd point anything that would give you a lot of clarity in terms of opportunities there, other than we continue to build the backlog in our business units. We continue to show strong margin performance. As we talked about before, we expect to complete roughly the first billion dollars of purchases from Element during 2014, and the second billion is slated for 2015. We will provide clarity as we have that later in the year, as is available. But we continue to have a lot of positive momentum in the company, we're optimistic about our growth opportunities, we demonstrated that through the acquisitions we've made, they continue to build the portfolio. We continue to invest our capital organically to give us growth opportunities as well.

All right. And if I could ask just one more on the tank cars side, clearly there's uncertainty out there, which you alluded to in the answer to my earlier question, but if you got customers with CPC-1232 cars on order today, expecting delivery over the next couple of quarters before that uncertainty maybe I guess resolved. Have they changed their response or are they changing specs in response to what we've seen already or is it more so the wait-and-see and potentially retrofit if we have to on the back end? Just what you're hearing from your customers today.

Bascome, this is Steve again. We are obviously going to work with our customers trying to accommodate them. We want them to have the right cars for their fleet to the extent we are able to do that, we will. But each of those has an individual view, all other companies view this issue very differently, and I think it's our responsibility to work with them on an individual basis. It'd be very hard for me to give you a general answer to that question.

And we'll go next to Matt Brooklier with Longbow Research.

If you could maybe highlight what's left in terms of the $1 billion for the Element deal that should be booked in the second half of this year. And then maybe talk to the contribution per third and fourth quarter. It looks like you did about 1/3 of the total of what was left in 2Q, I'm just curious as to your expectations for kind of the cadence of what remains from Element in the back half of this year.

Matt, this is James. Using the roughly $1 billion that we've talked about, and again, that could move a little bit timing-wise. To-date, Element's has purchased since December of last year through June 30, $740 million of rail cars from us, but from our Rail Group and our Leasing Group, that math will tell you there's 260 left in that first $1 billion, but again, that's not a terribly precise number. We do expect to have a relatively steady level of sales Element throughout the course of the last 2 quarters of the year. But again, geography, the timing of exact sales and whether they're from the Rail and Leasing Group is to be determined.

Okay. That's helpful. And then we heard there is some uncertainty with respect to flammable of tank cars and orders here. Do you have, I guess a little bit more visibility with proposed rule out there, but I'm just curious, there's -- it seems like there's still a pause with respect to the market participants stepping in and booking orders, and that was the case in 2Q, yet that the industry tank car number was really strong at roughly 10,000 units, so I'm just curious as to pause in the market, yet that the industry numbers got better in 2Q, what were some of the contributors to that improvement if you have some thoughts on that?

Sure, Matt. This is Steve. I think generally, there are customers who are pausing, waiting to order new railcars, pending regulatory standards. That's to be expected. As I mentioned in my earlier comments, we also have customers who recognize that they'll have a chance to clarify their railcars specifications by the time a car is built in the late '15, '16. The regulations will be more certain before then, but beyond just tank cars going to flammables as we are seeing steady demand for other types of tank cars. In particular, we're seeing strong demand for pressure cars to move natural gas liquids and propylene, for example. We're also seeing tank cars to move more general commodities, so there are tank cars in demand beyond those serving flammable service and we will see a pause, and it'll be a temporary pause until standards are clarified to those flammable customers to place their orders, perhaps we'll see a few early, so that they can get in queue, I would expect that the demand will be strong once those flammable standards are clarified.

Okay. And is it fair to assume the past 2 years, we've seen a disproportionate amount of flammable, service tank car orders coming through and yet we've neglected a portion of the market outside of flammable service. Could the step up in 2Q be a result of some of these other market participants coming in and maybe playing some catch-up in some of these other tank car categories?

Matt, this is Steve, yes sure. That's entirely possible. When we say disproportionate, I'm not really sure what that means if you look historically, there's always been 1 or 2 car types driving overall railcar demand, with ethanol cars back in the '07, '08 period, we got periods where coal cars drove rail car demand intermodal cars. So the trend right now is for cars for crude oil service. But we saw a lot of other tank cars over the last couple of years going to service, for hydrochloric acid, other general service cars, so these are natural cycles and trends where different car types lead the way, but the clue is demand for tank cars beyond crude oil cars.

And we'll take the next question from Eric Crawford with JPMorgan.

With UBS. So just following upon -- Bascome was asking some questions on PHMSA. Appreciate the commentary on tank car rates, I hope we can drill down a little bit more on the NPRM. Do you have a preference for 1 of the 3 options or some variation that was outlined and following -- to that, any thoughts on the proposed timeframe or the retrofit estimated costs that were included, do you think those are accurate? Any color would be helpful.

Eric, Steve. I think the only thing that I'm excited about is having certainty and it appears that we might have greater certainty as to the direction of regulatory requirements by the end of the year. I don't have a preference, so we're going to be prepared for any of our outcomes, and I think our team has really done a fine job in preparing themselves for regulatory change. So I'm confident we'll be in a good position.

Okay. And then I guess switching over to the energy segment, the recent acquisitions and the integration that's going on there, from the segment guidance, you've taken up the margin expectations while holding revenue steady. So just wondering if that's a function of an improved margin profile for the new businesses, relative to your initial expectations or if it's just broader execution across the segment?

Eric, this is Bill. I would say it's really broader execution across the segment. In particular, our storage containers doing very, very well. And our wind tower business continues to have improved performance, so probably those 2 businesses is really the driving force. I am pleased with the integration of the businesses, but like all new business we bring in, it takes a little time to get them up to full speed.

Sure. Okay, that's helpful. And then last for me. You mentioned a margin headwind in rail just from the startup costs and a little bit from mix, but wondering if you could kind of give us a sense of the breakdown between those 2. Is it 50/50, equally attributable or is 1 really the primary driver?

Eric, this is James. We're really not in a position to break that down. The margins remain very strong in the second half of the year for rail certainly. We think we wanted to point out that you all going from time to time, as we're ramping up our capacity to the new volume guidance that Steve provided. We're ramping up our maintenance facilities, integrating the Arkansas facility, for example, as well as that Steve mentioned, the timing of which we took certain orders and when we're producing certain orders, you can have a slight headwind in the second part of the year, but again, margins remain very strong in the Rail Group.

And we'll go next to Salvatore Vitale with Stern Agee. Salvatore Vitale - Sterne Agee & Leach Inc., Research Division: Just a quick question on the backlog, if I just back out the implied second half deliveries guidance, just based on your full year guidance, I see 29,500 to about 31,000 cars, I guess slated for delivery beyond 2014. How should we think about how much of that stretches out into 2016 at this point?

Steve?

I don't want to give any specifics of what parts of our backlog fall into what years, but I think we have great visibility into 2015 in our production plans, we do have some of our production lines that are slated all the way into 2016. So obviously, that gives us a good bit of visibility and allows us to plan our business effectively, and I would expect that we'll continue to take orders and fill in whatever holes we might have in '15 and '16 as we move forward.

Sal, this is Tim. The other thing that Steve and his group have done really well is they've identified bottlenecks that they may have on certain product lines. And then the capital that James mentioned, the internal capital that we're spending, we've spent quite a bit of capital on minimizing bottlenecks, freeing up bottlenecks in our rail car lines and then getting the volume to increase and that capital that we're spending is getting tremendous returns on it, and the people are doing a fabulous job of driving operating efficiencies once the bottlenecks that we have in a particular production facility get the -- once they overcome them. So this -- that's why it was a little bit hard for Steve to say how high he could go because our industrial engineering people as well as our lean initiatives and all of our people are identifying bottlenecks once they overcome one bottleneck, then they go to the next one, and we've made great headway in continuing to invest capital in that area. Salvatore Vitale - Sterne Agee & Leach Inc., Research Division: Okay, that's helpful. I appreciate your response. Regarding the Georgia facility, could you give us a little color there? When does the incremental capacity from that, come online or is it already on stream? And have you spoken in the past about what -- how many cars -- how much that capacity actually is?

Sal, this is Steve. Again, I'm very pleased with the progress we're making. We're fully positioning our Cartersville facility to be a very flexible facility, capable of making multi-products so within our railcar product line. I would anticipate that we'll be in a reasonable level of production by the end of the year, and then we will ramp up that facility to meet demand requirements as we see fit. And again, we typically don't provide capacity numbers by plant or in total, but this facility will be very constructive to our production plants. Salvatore Vitale - Sterne Agee & Leach Inc., Research Division: Okay, that's helpful. And then if I could just switch gears to the maintenance services side. Once all of your -- you mentioned a few different plants, I think you said 4 additional facilities beyond the Arkansas facility. So once all those facilities are up and running, what do you think your capacity to do the retrofits would be at that point?

Sal, Steve again. It's a difficult question because I'm not sure what the retrofits are going to be and there's a fair amount of variability in the different possible outcomes, but we certainly want to be able to comply with any of the regulatory requirements from a timing standpoint, as well as from a specification standpoint. And as I mentioned, we have our own fleet that we want to be sure that we can keep in service and meet the needs of our customers and obviously, we want to be able to work with key customers who have larger fleets as well. So I think we'll be in very good position in response of regulatory rate changes when they come down. Salvatore Vitale - Sterne Agee & Leach Inc., Research Division: And then just a follow-up on that. Do you expect that to be a profit center at some point or do you expect the capacity to be consumed I guess by the retrofits on your lease fleet?

Well, obviously, Sal, if we're doing a lot of work at our own fleet, those revenues and profits are eliminated in consolidation. Profits that we would realize from third-party work would go to the bottom line and difficult for us to really give you any projections on that right now.

The next question is from Arthur Hatfield with Raymond James.

This is Derek Rabe on for Art. Just had 2 questions that really haven't been addressed on my end. The first question concerns labor. We've been hearing across multiple industries that there's some difficulty in finding and keeping skilled workers. As you ramp up your production and maintenance capabilities across several of your platforms, has this been an issue or are you seeing this as being an issue going forward across any of those businesses be it in the U.S. or Mexico?

Derek, this is Tim. In hiring skilled laborers throughout our system has been a challenge and our people working with our HR groups are trying to find a variety of different ways to assist our plants in hiring people in a number of areas we have, training programs that have been established and we work with the local authorities to -- and the trade schools to try to equip people for our type of work environment and -- but this is nothing new. This is something, I mean, my 16th year of CEO, and almost every year that I've been in this position, we've had challenges of hiring people and getting them equipped for our facilities and our people do a remarkable job of coping with the challenges that are out there.

Okay, I appreciate that color. The second and final question from me, could you just provide an update on where you stand today in terms of your DOT-111 and flammable service exposure within your lease fleet? I think at the end of the last quarter, it was down to 11,300. And then secondly, as you reduce that exposure within your own fleet, can you comment on what you're doing with those cars? Are you moving those to other services or are you looking to sell?

Derek, this is James. In terms of the level of exposure we have with those cars, it's in line with where it was last quarter. We gave guidance last quarter, that was around 11,000 and that number hasn't really changed. We've added cars to the fleet. We sold cars to our partially owned fleet as well as to Element and other third parties. So that number can move around. I don't think we're in a position yet to talk about what we may do to change the exposure or what may happen with those cars until as Steve said. We'll have more clarity around the regulations.

And we'll take our last question from Tom Albrecht with BB&T Capital Markets. Thomas S. Albrecht - BB&T Capital Markets, Research Division: Most of my questions have been answered, but 2 questions. As the recovery takes place in non-tank cars, I was wondering, Steve, if you could comment on how competitive pricing might be for those? And then just wanted to clarify, I know years ago, you did intermodal cars, but it seems like there's been a long time, as of right now you're not building intermodal or coal cars. Is that correct?

Tom, Steve here. Our industry is a very competitive industry. And I think historically, we've seen excess capacity compared to demand. We have very, very strong demand. I think some of the capacity in our industry has been rationalized. I think some of the capacity for freight cars has been moved to tank cars. And so when we look at a 6 quarter backlog, I think it's a very strong environment and it certainly sends messages that we should be able to operate in a fairly strong pricing environment as well. So I like the fundamentals that I'm seeing in the non-tank car side of the business and hopefully, those will continue. With respect to intermodal cars, there was a large number of intermodal cars placed during the second quarter orders for intermodal cars. And you are correct, we are not currently building intermodal cars. And frankly, when we prioritize our production plans, we look for those cars that provide us the greatest returns and typically we find that those are markets that have multiple customers and fewer than 5 or 6 suppliers and when we look at the intermodal market, we see basically 1 buyer and multiple suppliers. So that doesn't really compel us to chase that market when we have opportunities that are consistent with our current production plans.

Okay. This is Gail Peck. It looks like that concludes today's conference call. A replay of this call will be available after 1:00 Eastern standard time today through midnight on August 6, 2014. The access number is (402) 220-0119. Also the replay will be available on the website located at www.trin.net. We look forward to visiting with you again on our next conference call. Thank you for joining us this morning.

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