- Demand for railcars remains robust across all regions; Rail
North America’s fleet utilization remains above 99%
- Aircraft spare engine portfolio continues to benefit from
strong demand for global air travel
- Investment volume was $442.0 million in the second quarter
and totaled $820.6 million year to date
- Company reiterates 2024 full-year earnings guidance
GATX Corporation (NYSE: GATX) today reported 2024 second-quarter
net income of $44.4 million, or $1.21 per diluted share, compared
to net income of $63.3 million, or $1.74 per diluted share, in the
second quarter of 2023. The 2024 second-quarter results include a
net negative impact of $8.0 million, or $0.22 per diluted share,
from Tax Adjustments and Other Items. The 2023 second-quarter
results include a net positive impact of $0.2 million, or $0.01 per
diluted share, from Tax Adjustments and Other Items.
Net income for the first six months of 2024 was $118.7 million,
or $3.25 per diluted share, compared to $140.7 million, or $3.87
per diluted share, in the prior year period. The 2024 and 2023
year-to-date results include net negative impacts of $7.4 million,
or $0.20 per diluted share, and $1.1 million, or $0.03 per diluted
share, respectively, from Tax Adjustments and Other Items. Details
related to these items are provided in the attached Supplemental
Information under Tax Adjustments and Other Items.
"Consistent with our initial outlook, conditions remain robust
across our global markets," said Robert C. Lyons, president and
chief executive officer of GATX. "At Rail North America, fleet
utilization remained high at 99.3% at the end of the quarter and
the renewal success rate was strong at 84.1%. The renewal lease
rate change of GATX’s Lease Price Index was positive 29.4% with an
average renewal term of 61 months. We continue to successfully
place deliveries of new railcars under our existing supply
agreement. In addition, we acquired over 600 railcars in the
secondary and spot markets during the quarter.
"Rail International produced solid operating results. Demand for
most railcar types remains stable and GATX Rail Europe's fleet
utilization was 95.8% at quarter end. We continue to take delivery
of new railcars in Europe and India, and in July, Rail India
celebrated the delivery of its 10,000th railcar. This milestone is
reflective of our ongoing commitment to India and the impressive
growth outlook for its freight rail market."
Mr. Lyons added, "Engine Leasing performed well as demand for
aircraft spare engines remains very strong. We anticipate favorable
operating conditions for Engine Leasing for the balance of the
year. Further, capitalizing on attractive opportunities to increase
our direct investment in aircraft spare engines, we acquired three
engines for $71.3 million during the quarter, and we foresee an
active investment calendar during the second half of this
year."
Mr. Lyons concluded, "We came into the year with positive
expectations, and market conditions and trends have been as
anticipated. Therefore, our 2024 full-year earnings estimate
remains unchanged at $7.30–$7.70 per diluted share, excluding the
impact of Tax Adjustments and Other Items."
RAIL NORTH AMERICA
Rail North America reported segment profit of $78.8 million in
the second quarter of 2024, compared to $79.3 million in the second
quarter of 2023. Year to date 2024, Rail North America reported
segment profit of $169.1 million, compared to $174.5 million in the
same period of 2023. Lower 2024 second-quarter and year-to-date
results were due to lower gains on asset dispositions and higher
interest expense, largely offset by higher revenue driven by higher
lease rates. Demand for railcars being sold in the secondary market
remains strong, and full-year remarketing income is expected to be
in line with original expectations.
At June 30, 2024, Rail North America’s wholly owned fleet was
composed of approximately 111,100 cars, including approximately
9,000 boxcars. The following fleet statistics and performance
discussion exclude the boxcar fleet.
Fleet utilization was 99.3% at the end of the second quarter of
2024, compared to 99.4% at the end of the prior quarter and 99.3%
at the end of the second quarter of 2023. During the second quarter
of 2024, the renewal lease rate change of the Lease Price Index
(LPI) was positive 29.4%, compared to positive 33.0% in the prior
quarter and positive 33.1% in the second quarter of 2023. The
average lease renewal term for all cars included in the LPI during
the second quarter of 2024 was 61 months, compared to 64 months in
the prior quarter and 61 months in the second quarter of 2023. The
2024 second-quarter renewal success rate was 84.1%, compared to
83.4% in the prior quarter and 85.3% in the second quarter of 2023.
Rail North America’s investment volume during the second quarter of
2024 was $308.1 million.
Additional fleet statistics, including information on the boxcar
fleet, and macroeconomic data related to Rail North America’s
business are provided in the attached Supplemental Information
under Rail North America Statistics.
RAIL INTERNATIONAL
Rail International’s segment profit was $26.5 million in the
second quarter of 2024, compared to $27.3 million in the second
quarter of 2023. Year to date 2024, Rail International reported
segment profit of $55.3 million, compared to $50.8 million in the
same period of 2023. 2023 year-to-date results include a net
positive impact of $0.3 million from Tax Adjustments and Other
Items. Additional details are provided in the attached Supplemental
Information under Tax Adjustments and Other Items. Excluding the
impact of these items, 2024 second-quarter and year-to-date results
were favorably impacted by more railcars on lease and higher lease
rates and negatively impacted by higher interest and maintenance
expenses.
At June 30, 2024, GATX Rail Europe’s (GRE) fleet consisted of
over 29,600 cars. Fleet utilization was 95.8%, compared to 95.3% at
the end of the prior quarter and 96.9% at the end of the second
quarter of 2023.
At June 30, 2024, Rail India's fleet consisted of over 9,900
railcars. Fleet utilization was 100%, compared to 100% at the end
of the prior quarter and 100% at the end of the second quarter of
2023.
Additional fleet statistics for GRE and Rail India are provided
on the last page of this press release.
ENGINE LEASING
Engine Leasing reported segment profit of $18.4 million in the
second quarter of 2024, compared to segment profit of $26.6 million
in the second quarter of 2023. Year to date 2024, segment profit
was $44.1 million, compared to segment profit of $54.9 million in
the same period of 2023.
2023 second-quarter results include a net positive impact of
$0.2 million from Tax Adjustments and Other Items. 2024 and 2023
year-to-date results include a net positive impact of $0.6 million
and a net negative impact of $1.4 million, respectively, from Tax
Adjustments and Other Items. Additional details are provided in the
attached Supplemental Information under Tax Adjustments and Other
Items.
Excluding the impact of these items, lower 2024 second-quarter
and year-to-date results were driven by lower earnings from the
Rolls-Royce and Partners Finance (RRPF) affiliates, partly offset
by increased earnings from GATX Engine Leasing, the Company’s
wholly owned engine portfolio. During the comparative periods,
lower RRPF earnings was driven by the timing of remarketing events
and resulting lower remarketing income.
COMPANY DESCRIPTION
At GATX Corporation (NYSE: GATX), we empower our customers to
propel the world forward. GATX leases transportation assets
including railcars, aircraft spare engines and tank containers to
customers worldwide. Our mission is to provide innovative,
unparalleled service that enables our customers to transport what
matters safely and sustainably while championing the well-being of
our employees and communities. Headquartered in Chicago, Illinois
since its founding in 1898, GATX has paid a quarterly dividend,
uninterrupted, since 1919.
TELECONFERENCE
INFORMATION
GATX Corporation will host a teleconference to discuss 2024
second-quarter results. Call details are as follows:
Tuesday, July 23, 2024 11 a.m.
Eastern Time Domestic Dial-In:
1-800-715-9871 International Dial-In: 1-646-307-1963 Replay:
1-800-770-2030 or 1-609-800-9909 / Access Code: 1721810
Call-in details, a copy of this press release and real-time
audio access are available at www.gatx.com. Please access the call
15 minutes prior to the start time. A replay will be available on
the same site starting at 2 p.m. (Eastern Time), July 23, 2024.
AVAILABILITY OF INFORMATION ON GATX'S
WEBSITE
Investors and others should note that GATX routinely announces
material information to investors and the marketplace using SEC
filings, press releases, public conference calls, webcasts and the
GATX Investor Relations website. While not all of the information
that the Company posts to the GATX Investor Relations website is of
a material nature, some information could be deemed to be material.
Accordingly, the Company encourages investors, the media and others
interested in GATX to review the information that it shares on
www.gatx.com under the “Investors” tab.
FORWARD-LOOKING
STATEMENTS
Statements in this Earnings Release not based on historical
facts are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995 and, accordingly,
involve known and unknown risks and uncertainties that are
difficult to predict and could cause our actual results,
performance, or achievements to differ materially from those
discussed. These include statements as to our future expectations,
beliefs, plans, strategies, objectives, events, conditions,
financial performance, prospects, or future events. In some cases,
forward-looking statements can be identified by the use of words
such as “may,” “could,” “expect,” “intend,” “plan,” “seek,”
“anticipate,” “believe,” “estimate,” “predict,” “potential,”
“outlook,” “continue,” “likely,” “will,” “would,” and similar words
and phrases. Forward-looking statements are necessarily based on
estimates and assumptions that, while considered reasonable by us
and our management, are inherently uncertain. Accordingly, you
should not place undue reliance on forward-looking statements,
which speak only as of the date they are made, and are not
guarantees of future performance. We do not undertake any
obligation to publicly update or revise these forward-looking
statements.
The following factors, in addition to those discussed under
"Risk Factors" and elsewhere in our filings with the SEC, including
our Annual Report on Form 10-K for the year ended December 31,
2023, and any subsequent reports on Form 10-Q, could cause actual
results to differ materially from our current expectations
expressed in forward-looking statements:
- a significant decline in customer demand for our transportation
assets or services, including as a result of:
- prolonged inflation or deflation
- high interest rates
- weak macroeconomic conditions and world trade policies
- weak market conditions in our customers' businesses
- adverse changes in the price of, or demand for,
commodities
- changes in railroad operations, efficiency, pricing and service
offerings, including those related to "precision scheduled
railroading" or labor strikes or shortages
- changes in, or disruptions to, supply chains
- availability of pipelines, trucks, and other alternative modes
of transportation
- changes in conditions affecting the aviation industry,
including global conflicts, geographic exposure and customer
concentrations
- customers' desire to buy, rather than lease, our transportation
assets
- other operational or commercial needs or decisions of our
customers
- inability to maintain our transportation assets on lease at
satisfactory rates due to oversupply of assets in the market or
other changes in supply and demand
- competitive factors in our primary markets, including
competitors with significantly lower costs of capital
- higher costs associated with increased assignments of our
transportation assets following non-renewal of leases, customer
defaults, and compliance maintenance programs or other maintenance
initiatives
- events having an adverse impact on assets, customers, or
regions where we have a concentrated investment exposure
- financial and operational risks associated with long-term
purchase commitments for transportation assets
- reduced opportunities to generate asset remarketing income
- inability to successfully consummate and manage ongoing
acquisition and divestiture activities
- reliance on Rolls-Royce in connection with our aircraft spare
engine leasing businesses, and the risks that certain factors that
adversely affect Rolls-Royce could have an adverse effect on our
businesses
- potential obsolescence of our assets
- risks related to our international operations and expansion
into new geographic markets, including laws, regulations, tariffs,
taxes, treaties or trade barriers affecting our activities in the
countries where we do business
- failure to successfully negotiate collective bargaining
agreements with the unions representing a substantial portion of
our employees
- inability to attract, retain, and motivate qualified personnel,
including key management personnel
- inability to maintain and secure our information technology
infrastructure from cybersecurity threats and related disruption of
our business
- exposure to damages, fines, criminal and civil penalties, and
reputational harm arising from a negative outcome in litigation,
including claims arising from an accident involving transportation
assets
- changes in, or failure to comply with, laws, rules, and
regulations
- environmental liabilities and remediation costs
- operational, functional and regulatory risks associated with
climate change, severe weather events and natural disasters, and
other environmental, social and governance matters
- U.S. and global political conditions and the impact of
increased geopolitical tension and wars, including the ongoing war
between Russia and Ukraine and resulting sanctions and
countermeasures, on domestic and global economic conditions in
general, including supply chain challenges and disruptions
- prolonged inflation or deflation
- fluctuations in foreign exchange rates
- deterioration of conditions in the capital markets, reductions
in our credit ratings, or increases in our financing costs
- the emergence of new variants of COVID-19 or the occurrence of
another widespread health crisis and the impact of measures taken
in response
- inability to obtain cost-effective insurance
- changes in assumptions, increases in funding requirements or
investment losses in our pension and post-retirement plans
- inadequate allowances to cover credit losses in our
portfolio
- asset impairment charges we may be required to recognize
- inability to maintain effective internal control over financial
reporting and disclosure controls and procedures
GATX CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED)
(In millions, except per share
data)
Three Months Ended June
30
Six Months Ended June
30
2024
2023
2024
2023
Revenues
Lease revenue
$
339.6
$
308.6
$
672.9
$
610.6
Non-dedicated engine revenue
13.7
6.4
26.9
10.9
Marine operating revenue
—
2.0
—
5.5
Other revenue
33.4
26.2
66.8
55.1
Total Revenues
386.7
343.2
766.6
682.1
Expenses
Maintenance expense
96.6
82.3
188.0
166.2
Marine operating expense
—
2.4
—
4.4
Depreciation expense
98.5
92.1
194.5
181.9
Operating lease expense
9.0
9.0
18.0
18.0
Other operating expense
13.8
11.0
27.4
22.0
Selling, general and administrative
expense
58.6
52.0
114.5
102.4
Total Expenses
276.5
248.8
542.4
494.9
Other Income (Expense)
Net gain on asset dispositions
25.6
41.1
61.8
88.2
Interest expense, net
(82.8
)
(63.7
)
(160.6
)
(122.7
)
Other expense
(10.8
)
(4.9
)
(10.0
)
(8.9
)
Income before Income Taxes and Share of
Affiliates’ Earnings
42.2
66.9
115.4
143.8
Income taxes
(10.4
)
(17.6
)
(29.0
)
(37.8
)
Share of affiliates’ earnings, net of
taxes
12.6
14.0
32.3
34.7
Net Income
$
44.4
$
63.3
$
118.7
$
140.7
Share Data
Basic earnings per share
$
1.22
$
1.74
$
3.25
$
3.88
Average number of common shares
35.8
35.6
35.8
35.6
Diluted earnings per share
$
1.21
$
1.74
$
3.25
$
3.87
Average number of common shares and common
share equivalents
35.9
35.7
35.9
35.7
Dividends declared per common share
$
0.58
$
0.55
$
1.16
$
1.10
GATX CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
(In millions)
June 30
December 31
2024
2023
Assets
Cash and Cash Equivalents
$
823.6
$
450.7
Restricted Cash
0.2
0.1
Receivables
Rent and other receivables
96.9
87.9
Finance leases (as lessor)
124.7
136.4
Less: allowance for losses
(5.3
)
(5.9
)
216.3
218.4
Operating Assets and Facilities
13,675.9
13,081.9
Less: allowance for depreciation
(3,764.1
)
(3,670.7
)
9,911.8
9,411.2
Lease Assets (as lessee)
Right-of-use assets, net of accumulated
depreciation
195.8
212.0
195.8
212.0
Investments in Affiliated
Companies
660.8
627.0
Goodwill
117.3
120.0
Other Assets ($1.8 and $0.8 related
to assets held for sale)
296.8
286.6
Total Assets
$
12,222.6
$
11,326.0
Liabilities and Shareholders’
Equity
Accounts Payable and Accrued
Expenses
$
209.1
$
239.6
Debt
Commercial paper and borrowings under bank
credit facilities
10.7
11.0
Recourse
8,235.7
7,388.1
8,246.4
7,399.1
Lease Obligations (as lessee)
Operating leases
209.3
226.8
209.3
226.8
Deferred Income Taxes
1,103.8
1,081.1
Other Liabilities
110.6
106.4
Total Liabilities
9,879.2
9,053.0
Total Shareholders’ Equity
2,343.4
2,273.0
Total Liabilities and Shareholders’
Equity
$
12,222.6
$
11,326.0
GATX CORPORATION AND
SUBSIDIARIES
SEGMENT DATA
(UNAUDITED)
Three Months Ended June 30,
2024
(In millions)
Rail North America
Rail International
Engine Leasing
Other
GATX Consolidated
Revenues
Lease revenue
$
242.1
$
82.0
$
8.1
$
7.4
$
339.6
Non-dedicated engine revenue
—
—
13.7
—
13.7
Other revenue
28.3
3.2
—
1.9
33.4
Total Revenues
270.4
85.2
21.8
9.3
386.7
Expenses
Maintenance expense
77.4
18.2
—
1.0
96.6
Depreciation expense
66.8
19.4
8.6
3.7
98.5
Operating lease expense
9.0
—
—
—
9.0
Other operating expense
6.4
3.6
1.9
1.9
13.8
Total Expenses
159.6
41.2
10.5
6.6
217.9
Other Income (Expense)
Net gain on asset dispositions
24.9
0.7
—
—
25.6
Interest (expense) income, net
(56.4
)
(17.5
)
(9.7
)
0.8
(82.8
)
Other expense
(0.3
)
(0.7
)
(0.1
)
(9.7
)
(10.8
)
Share of affiliates' pre-tax (losses)
earnings
(0.2
)
—
16.9
—
16.7
Segment profit (loss)
$
78.8
$
26.5
$
18.4
$
(6.2
)
$
117.5
Less:
Selling, general and administrative
expense
58.6
Income taxes (includes $4.1 related to
affiliates' earnings)
14.5
Net income
$
44.4
Selected
Data:
Investment volume
$
308.1
$
59.6
$
71.3
$
3.0
$
442.0
Net Gain on Asset Dispositions
Asset Remarketing
Income:
Net gains on disposition of owned
assets
$
19.8
$
—
$
—
$
—
$
19.8
Residual sharing income
0.1
—
—
—
0.1
Non-remarketing net gains (1)
5.0
0.7
—
—
5.7
$
24.9
$
0.7
$
—
$
—
$
25.6
__________
(1)
Includes net gains from scrapping of
railcars.
GATX CORPORATION AND
SUBSIDIARIES
SEGMENT DATA
(UNAUDITED)
Three Months Ended June 30,
2023
(In millions)
Rail North America
Rail International
Engine Leasing
Other
GATX Consolidated
Revenues
Lease revenue
$
218.9
$
73.1
$
8.1
$
8.5
$
308.6
Non-dedicated engine revenue
—
—
6.4
—
6.4
Marine operating revenue
—
—
2.0
—
2.0
Other revenue
21.5
3.1
—
1.6
26.2
Total Revenues
240.4
76.2
16.5
10.1
343.2
Expenses
Maintenance expense
66.8
14.6
—
0.9
82.3
Marine operating expense
—
—
2.4
—
2.4
Depreciation expense
66.1
16.6
6.1
3.3
92.1
Operating lease expense
9.0
—
—
—
9.0
Other operating expense
6.7
2.3
1.4
0.6
11.0
Total Expenses
148.6
33.5
9.9
4.8
196.8
Other Income (Expense)
Net gain on asset dispositions
34.1
0.7
6.0
0.3
41.1
Interest (expense) income, net
(44.5
)
(13.5
)
(6.5
)
0.8
(63.7
)
Other (expense) income
(2.1
)
(2.6
)
0.2
(0.4
)
(4.9
)
Share of affiliates' pre-tax earnings
—
—
20.3
—
20.3
Segment profit
$
79.3
$
27.3
$
26.6
$
6.0
$
139.2
Less:
Selling, general and administrative
expense
52.0
Income taxes (includes $6.3 related to
affiliates' earnings)
23.9
Net income
$
63.3
Selected
Data:
Investment volume
$
161.3
$
77.3
$
239.0
$
9.0
$
486.6
Net Gain on Asset Dispositions
Asset Remarketing
Income:
Net gains on disposition of owned
assets
$
30.7
$
0.1
$
5.9
$
0.2
$
36.9
Residual sharing income
0.1
—
0.1
—
0.2
Non-remarketing net gains (1)
3.3
0.6
—
0.1
4.0
$
34.1
$
0.7
$
6.0
$
0.3
$
41.1
__________
(1)
Includes net gains from scrapping of
railcars.
GATX CORPORATION AND
SUBSIDIARIES
SEGMENT DATA
(UNAUDITED)
Six Months Ended June 30,
2024
(In millions)
Rail North America
Rail International
Engine Leasing
Other
GATX Consolidated
Revenues
Lease revenue
$
478.6
$
162.6
$
16.2
$
15.5
$
672.9
Non-dedicated engine revenue
—
—
26.9
—
26.9
Other revenue
56.8
6.3
—
3.7
66.8
Total Revenues
535.4
168.9
43.1
19.2
766.6
Expenses
Maintenance expense
150.3
35.7
—
2.0
188.0
Depreciation expense
131.9
38.3
17.0
7.3
194.5
Operating lease expense
18.0
—
—
—
18.0
Other operating expense
13.1
7.1
4.4
2.8
27.4
Total Expenses
313.3
81.1
21.4
12.1
427.9
Other Income (Expense)
Net gain on asset dispositions
59.1
2.0
0.6
0.1
61.8
Interest (expense) income, net
(109.7
)
(34.2
)
(19.0
)
2.3
(160.6
)
Other (expense) income
(2.4
)
(0.3
)
0.2
(7.5
)
(10.0
)
Share of affiliates' pre-tax earnings
—
—
40.6
—
40.6
Segment profit
$
169.1
$
55.3
$
44.1
$
2.0
$
270.5
Less:
Selling, general and administrative
expense
114.5
Income taxes (includes $8.3 related to
affiliates' earnings)
37.3
Net income
$
118.7
Selected
Data:
Investment volume
$
629.8
$
109.5
$
71.3
$
10.0
$
820.6
Net Gain on Asset Dispositions
Asset Remarketing
Income:
Net gains on disposition of owned
assets
$
52.7
$
0.1
$
0.6
$
0.1
$
53.5
Residual sharing income
0.2
—
—
—
0.2
Non-remarketing net gains (1)
6.2
1.9
—
—
8.1
$
59.1
$
2.0
$
0.6
$
0.1
$
61.8
__________
(1)
Includes net gains from scrapping of
railcars.
GATX CORPORATION AND
SUBSIDIARIES
SEGMENT DATA
(UNAUDITED)
Six Months Ended June 30,
2023
(In millions)
Rail North America
Rail International
Engine Leasing
Other
GATX Consolidated
Revenues
Lease revenue
$
434.0
$
143.5
$
16.4
$
16.7
$
610.6
Non-dedicated engine revenue
—
—
10.9
—
10.9
Marine operating revenue
—
—
5.5
—
5.5
Other revenue
45.3
6.0
—
3.8
55.1
Total Revenues
479.3
149.5
32.8
20.5
682.1
Expenses
Maintenance expense
133.7
30.5
—
2.0
166.2
Marine operating expense
—
—
4.4
—
4.4
Depreciation expense
131.6
32.3
11.5
6.5
181.9
Operating lease expense
18.0
—
—
—
18.0
Other operating expense
13.7
4.5
2.3
1.5
22.0
Total Expenses
297.0
67.3
18.2
10.0
392.5
Other Income (Expense)
Net gain on asset dispositions
81.9
1.5
4.5
0.3
88.2
Interest (expense) income, net
(86.8
)
(26.0
)
(12.2
)
2.3
(122.7
)
Other (expense) income
(2.5
)
(6.9
)
(0.3
)
0.8
(8.9
)
Share of affiliates' pre-tax (losses)
earnings
(0.4
)
—
48.3
—
47.9
Segment profit
$
174.5
$
50.8
$
54.9
$
13.9
$
294.1
Less:
Selling, general and administrative
expense
102.4
Income taxes (includes $13.2 related to
affiliates' earnings)
51.0
Net income
$
140.7
Selected
Data:
Investment volume.
$
457.8
$
158.4
$
239.0
$
18.4
$
873.6
Net Gain on Asset Dispositions
Asset Remarketing
Income:
Net gains on disposition of owned
assets.
$
75.4
$
0.5
$
5.5
$
0.2
$
81.6
Residual sharing income.
0.2
—
0.2
—
0.4
Non-remarketing net gains (1)
6.3
1.0
—
0.1
7.4
Asset impairments
—
—
(1.2
)
—
(1.2
)
$
81.9
$
1.5
$
4.5
$
0.3
$
88.2
__________
(1)
Includes net gains from scrapping of
railcars.
GATX CORPORATION AND
SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(UNAUDITED)
(In millions, except per share
data)
Impact of Tax
Adjustments and Other Items on Net Income (1)
Three Months Ended June
30
Six Months Ended June
30
2024
2023
2024
2023
Net income (GAAP)
$
44.4
$
63.3
$
118.7
$
140.7
Adjustments attributable to consolidated
pre-tax income:
Environmental reserves (2)
$
10.7
$
—
$
10.7
$
—
Net (gain) loss on Specialized Gas Vessels
at Engine Leasing (3)
—
(0.2
)
(0.6
)
1.4
Net gain on Rail Russia at Rail
International (4)
—
—
—
(0.3
)
Total adjustments attributable to
consolidated pre-tax income
$
10.7
$
(0.2
)
$
10.1
$
1.1
Income taxes thereon, based on applicable
effective tax rate
(2.7
)
—
(2.7
)
—
Net income, excluding tax adjustments and
other items (non-GAAP)
$
52.4
$
63.1
$
126.1
$
141.8
Impact of Tax
Adjustments and Other Items on Diluted Earnings per Share
(1)
Three Months Ended June
30
Six Months Ended June
30
2024
2023
2024
2023
Diluted earnings per share (GAAP)
$
1.21
$
1.74
$
3.25
$
3.87
Diluted earnings per share, excluding tax
adjustments and other items (non-GAAP)
$
1.43
$
1.73
$
3.45
$
3.90
__________
(1)
In addition to financial results reported
in accordance with GAAP, we compute certain financial measures
using non-GAAP components. Specifically, we exclude the effects of
certain tax adjustments and other items for purposes of presenting
net income and diluted earnings per share because we believe these
items are not attributable to our business operations. Management
utilizes net income, excluding tax adjustments and other items,
when analyzing financial performance because such amounts reflect
the underlying operating results that are within management’s
ability to influence. Accordingly, we believe presenting this
information provides investors and other users of our financial
statements with meaningful supplemental information for purposes of
analyzing year-to-year financial performance on a comparable basis
and assessing trends.
(2)
Reserves recorded for our share of
anticipated environmental remediation costs arising out of prior
operations and legacy businesses.
(3)
In 2022, we made the decision to sell the
Specialized Gas Vessels. We have recorded gains and losses
associated with the subsequent impairments and sales of these
assets. All vessels were sold as of December 31, 2023.
(4)
In 2022, we made the decision to exit our
rail business in Russia ("Rail Russia"). In the first quarter of
2023, we sold Rail Russia and recorded a gain on the final sale of
this business.
GATX CORPORATION AND
SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(UNAUDITED)
(In millions, except
leverage)
6/30/2024
3/31/2024
12/31/2023
9/30/2023
6/30/2023
Total Assets, Excluding Cash, by
Segment
Rail North America
$
7,416.0
$
7,214.1
$
6,984.9
$
6,760.5
$
6,671.3
Rail International
2,168.3
2,142.1
2,150.8
1,951.5
1,902.3
Engine Leasing
1,431.7
1,354.4
1,343.2
1,363.8
1,328.6
Other
382.8
389.3
396.3
368.5
370.2
Total Assets, excluding cash
$
11,398.8
$
11,099.9
$
10,875.2
$
10,444.3
$
10,272.4
Debt and Lease Obligations, Net of
Unrestricted Cash
Unrestricted cash
$
(823.6
)
$
(479.1
)
$
(450.7
)
$
(203.1
)
$
(317.5
)
Commercial paper and bank credit
facilities
10.7
10.8
11.0
12.3
10.9
Recourse debt
8,235.7
7,624.5
7,388.1
6,835.6
6,785.6
Operating lease obligations
209.3
215.2
226.8
233.2
241.1
Total debt and lease obligations, net of
unrestricted cash
$
7,632.1
$
7,371.4
$
7,175.2
$
6,878.0
$
6,720.1
Total recourse debt (1)
$
7,632.1
$
7,371.4
$
7,175.2
$
6,878.0
$
6,720.1
Shareholders’ Equity
$
2,343.4
$
2,324.3
$
2,273.0
$
2,174.5
$
2,178.9
Recourse Leverage (2)
3.3
3.2
3.2
3.2
3.1
__________
(1)
Includes recourse debt, commercial paper
and bank credit facilities, and operating and finance lease
obligations, net of unrestricted cash.
(2)
Calculated as total recourse debt /
shareholder's equity.
Reconciliation of
Total Assets to Total Assets, Excluding Cash
Total Assets
$
12,222.6
$
11,579.1
$
11,326.0
$
10,647.5
$
10,590.1
Less: cash
(823.8
)
(479.2
)
(450.8
)
(203.2
)
(317.7
)
Total Assets, excluding cash
$
11,398.8
$
11,099.9
$
10,875.2
$
10,444.3
$
10,272.4
GATX CORPORATION AND
SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(UNAUDITED)
(Continued)
6/30/2024
3/31/2024
12/31/2023
9/30/2023
6/30/2023
Rail North
America Statistics
Lease Price Index (LPI) (1)
Average renewal lease rate change
29.4
%
33.0
%
33.5
%
33.4
%
33.1
%
Average renewal term (months)
61
64
65
65
61
Renewal Success Rate (2)
84.1
%
83.4
%
87.1
%
83.6
%
85.3
%
Fleet Rollforward (3)
Beginning balance
101,687
101,167
100,656
100,585
101,219
Railcars added
1,337
1,422
1,688
791
358
Railcars scrapped
(389
)
(375
)
(354
)
(292
)
(316
)
Railcars sold
(549
)
(527
)
(823
)
(428
)
(676
)
Ending balance
102,086
101,687
101,167
100,656
100,585
Utilization
99.3
%
99.4
%
99.3
%
99.3
%
99.3
%
Average active railcars
101,181
100,677
100,197
99,796
100,230
Boxcar Fleet Rollforward
Beginning balance
9,670
9,311
9,087
8,959
8,789
Boxcars added
—
587
424
316
279
Boxcars scrapped
(555
)
(228
)
(152
)
(95
)
(109
)
Boxcars sold
(125
)
—
(48
)
(93
)
—
Ending balance
8,990
9,670
9,311
9,087
8,959
Utilization
99.8
%
99.8
%
100.0
%
99.7
%
99.8
%
Average active railcars
9,304
9,583
9,207
8,985
8,855
Rail North
America Industry Statistics
Manufacturing Capacity Utilization Index
(4)
78.8
%
77.8
%
78.7
%
79.5
%
78.9
%
Year-over-year Change in U.S. Carloadings
(excl. intermodal) (5)
(4.5
)%
(4.2
)%
0.7
%
30.0
%
0.6
%
Year-over-year Change in U.S. Carloadings
(chemical) (5)
4.3
%
4.5
%
(0.3
)%
(2.6
)%
(4.5
)%
Year-over-year Change in U.S. Carloadings
(petroleum) (5)
11.1
%
7.7
%
11.1
%
10.5
%
9.6
%
Production Backlog at Railcar
Manufacturers (6)
n/a (7)
46,413
51,836
58,680
59,878
__________
(1)
GATX's Lease Price Index (LPI) is an
internally-generated business indicator that measures renewal
activity for our North American railcar fleet, excluding boxcars.
The average renewal lease rate change is reported as the percentage
change between the average renewal lease rate and the average
expiring lease rate. The average renewal lease term is reported in
months and reflects the average renewal lease term in the LPI.
(2)
The renewal success rate represents the
percentage of railcars on expiring leases that were renewed with
the existing lessee. The renewal success rate is an important
metric because railcars returned by our customers may remain idle
or incur additional maintenance and freight costs prior to being
leased to new customers.
(3)
Excludes boxcar fleet.
(4)
As reported and revised by the Federal
Reserve.
(5)
As reported by the Association of American
Railroads (AAR).
(6)
As reported by the Railway Supply
Institute (RSI).
(7)
Not available, not published as of the
date of this release.
GATX CORPORATION AND
SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(UNAUDITED)
(Continued)
6/30/2024
3/31/2024
12/31/2023
9/30/2023
6/30/2023
Rail Europe
Statistics
Fleet Rollforward
Beginning balance
29,371
29,216
29,102
28,759
28,461
Railcars added
388
322
371
446
376
Railcars scrapped or sold
(110
)
(167
)
(257
)
(103
)
(78
)
Ending balance
29,649
29,371
29,216
29,102
28,759
Utilization
95.8
%
95.3
%
95.9
%
96.0
%
96.9
%
Average active railcars
28,198
27,984
28,003
27,884
27,973
Rail India
Statistics
Fleet Rollforward
Beginning balance
9,501
8,805
7,884
6,927
6,351
Railcars added
408
696
921
957
576
Railcars scrapped or sold
(5
)
—
—
—
—
Ending balance
9,904
9,501
8,805
7,884
6,927
Utilization
100.0
%
100.0
%
100.0
%
100.0
%
100.0
%
Average active railcars
9,711
9,089
8,321
7,366
6,584
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240723814260/en/
GATX Corporation Shari Hellerman Senior Director, Investor
Relations, ESG, and External Communications 312-621-4285
shari.hellerman@gatx.com
Grafico Azioni GATX (NYSE:GATX)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni GATX (NYSE:GATX)
Storico
Da Nov 2023 a Nov 2024
