GATX Corporation Reports 2024 Third-Quarter Results
- Demand for railcars across GATX's global fleets remains strong; Rail North America’s fleet utilization remains above 99%
- Aircraft spare engine portfolio continues strong performance
-
Investment volume was
$504.5 million in the third quarter and totaled over$1.3 billion year to date -
Company updates 2024 full-year earnings guidance to
$7.50 – 7.70 per diluted share
Net income for the first nine months of 2024 was
"Operating conditions across our global markets remain consistent with our expectations coming into the year," said
"
"
"
RAIL
As of
During the third quarter of 2024, the renewal lease rate change of the LPI was positive 26.6%. This compares to positive 29.4% in the prior quarter and positive 33.4% in the third quarter of 2023. The average lease renewal term for all cars included in the LPI during the third quarter of 2024 was 59 months, compared to 61 months in the prior quarter and 65 months in the third quarter of 2023. The 2024 third-quarter renewal success rate was 82.0%, compared to 84.1% in the prior quarter and 83.6% in the third quarter of 2023. Rail North America’s investment volume during the third quarter of 2024 was
Additional fleet statistics, including information on the boxcar fleet, and macroeconomic data related to Rail North America’s business are provided on the last page of this press release.
RAIL INTERNATIONAL
Rail International’s segment profit was
As of
As of
Additional fleet statistics for GRE and Rail India are provided on the last page of this press release.
ENGINE LEASING
2024 and 2023 year-to-date results include a net positive impact of
Excluding these impacts, higher 2024 third-quarter and year-to-date segment profit was predominately driven by strong performance at the
COMPANY DESCRIPTION
At
TELECONFERENCE INFORMATION
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: 5389470
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
AVAILABILITY OF INFORMATION ON GATX'S WEBSITE
Investors and others should note that GATX routinely announces material information to investors and the marketplace using
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
|
|
|
GATX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In millions, except per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
|
|
|
|
|
|
|
||||||||
Lease revenue |
$ |
351.7 |
|
|
$ |
317.2 |
|
|
$ |
1,024.6 |
|
|
$ |
927.8 |
|
Non-dedicated engine revenue |
|
18.1 |
|
|
|
13.6 |
|
|
|
45.0 |
|
|
|
24.5 |
|
Marine operating revenue |
|
— |
|
|
|
0.6 |
|
|
|
— |
|
|
|
6.1 |
|
Other revenue |
|
35.6 |
|
|
|
28.7 |
|
|
|
102.4 |
|
|
|
83.8 |
|
Total Revenues |
|
405.4 |
|
|
|
360.1 |
|
|
|
1,172.0 |
|
|
|
1,042.2 |
|
Expenses |
|
|
|
|
|
|
|
||||||||
Maintenance expense |
|
95.9 |
|
|
|
87.9 |
|
|
|
283.9 |
|
|
|
254.1 |
|
Marine operating expense |
|
— |
|
|
|
1.0 |
|
|
|
— |
|
|
|
5.4 |
|
Depreciation expense |
|
103.4 |
|
|
|
96.2 |
|
|
|
297.9 |
|
|
|
278.1 |
|
Operating lease expense |
|
8.0 |
|
|
|
9.0 |
|
|
|
26.0 |
|
|
|
27.0 |
|
Other operating expense |
|
14.1 |
|
|
|
12.0 |
|
|
|
41.5 |
|
|
|
34.0 |
|
Selling, general and administrative expense |
|
57.2 |
|
|
|
51.0 |
|
|
|
171.7 |
|
|
|
153.4 |
|
Total Expenses |
|
278.6 |
|
|
|
257.1 |
|
|
|
821.0 |
|
|
|
752.0 |
|
Other Income (Expense) |
|
|
|
|
|
|
|
||||||||
Net gain on asset dispositions |
|
48.5 |
|
|
|
16.9 |
|
|
|
110.3 |
|
|
|
105.1 |
|
Interest expense, net |
|
(88.9 |
) |
|
|
(68.1 |
) |
|
|
(249.5 |
) |
|
|
(190.8 |
) |
Other (expense) income |
|
(0.9 |
) |
|
|
1.8 |
|
|
|
(10.9 |
) |
|
|
(7.1 |
) |
Income before Income Taxes and Share of Affiliates’ Earnings |
|
85.5 |
|
|
|
53.6 |
|
|
|
200.9 |
|
|
|
197.4 |
|
Income taxes |
|
(22.9 |
) |
|
|
(14.5 |
) |
|
|
(51.9 |
) |
|
|
(52.3 |
) |
Share of affiliates’ earnings, net of taxes |
|
26.4 |
|
|
|
13.4 |
|
|
|
58.7 |
|
|
|
48.1 |
|
Net Income |
$ |
89.0 |
|
|
$ |
52.5 |
|
|
$ |
207.7 |
|
|
$ |
193.2 |
|
|
|
|
|
|
|
|
|
||||||||
Share Data |
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
$ |
2.44 |
|
|
$ |
1.44 |
|
|
$ |
5.70 |
|
|
$ |
5.32 |
|
Average number of common shares |
|
35.8 |
|
|
|
35.7 |
|
|
|
35.8 |
|
|
|
35.6 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share |
$ |
2.43 |
|
|
$ |
1.44 |
|
|
$ |
5.68 |
|
|
$ |
5.30 |
|
Average number of common shares and common share equivalents |
|
35.9 |
|
|
|
35.8 |
|
|
|
35.9 |
|
|
|
35.7 |
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share |
$ |
0.58 |
|
|
$ |
0.55 |
|
|
$ |
1.74 |
|
|
$ |
1.65 |
|
GATX CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In millions) |
|||||||
|
|
|
|
||||
|
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
||||
Cash and Cash Equivalents |
$ |
503.7 |
|
|
$ |
450.7 |
|
Restricted Cash |
|
0.1 |
|
|
|
0.1 |
|
Receivables |
|
|
|
||||
Rent and other receivables |
|
93.9 |
|
|
|
87.9 |
|
Finance leases (as lessor) |
|
124.8 |
|
|
|
136.4 |
|
Less: allowance for losses |
|
(5.3 |
) |
|
|
(5.9 |
) |
|
|
213.4 |
|
|
|
218.4 |
|
|
|
|
|
||||
Operating Assets and Facilities |
|
14,243.1 |
|
|
|
13,081.9 |
|
Less: allowance for depreciation |
|
(3,866.7 |
) |
|
|
(3,670.7 |
) |
|
|
10,376.4 |
|
|
|
9,411.2 |
|
Lease Assets (as lessee) |
|
|
|
||||
Right-of-use assets, net of accumulated depreciation |
|
173.5 |
|
|
|
212.0 |
|
|
|
173.5 |
|
|
|
212.0 |
|
|
|
|
|
||||
Investments in Affiliated Companies |
|
690.3 |
|
|
|
627.0 |
|
|
|
120.9 |
|
|
|
120.0 |
|
Other Assets ( |
|
301.6 |
|
|
|
286.6 |
|
Total Assets |
$ |
12,379.9 |
|
|
$ |
11,326.0 |
|
|
|
|
|
||||
Liabilities and Shareholders’ Equity |
|
|
|
||||
Accounts Payable and Accrued Expenses |
$ |
210.1 |
|
|
$ |
239.6 |
|
Debt |
|
|
|
||||
Commercial paper and borrowings under bank credit facilities |
|
11.1 |
|
|
|
11.0 |
|
Recourse |
|
8,293.5 |
|
|
|
7,388.1 |
|
|
|
8,304.6 |
|
|
|
7,399.1 |
|
Lease Obligations (as lessee) |
|
|
|
||||
Operating leases |
|
187.5 |
|
|
|
226.8 |
|
|
|
187.5 |
|
|
|
226.8 |
|
|
|
|
|
||||
Deferred Income Taxes |
|
1,132.2 |
|
|
|
1,081.1 |
|
Other Liabilities |
|
108.8 |
|
|
|
106.4 |
|
Total Liabilities |
|
9,943.2 |
|
|
|
9,053.0 |
|
Total Shareholders’ Equity |
|
2,436.7 |
|
|
|
2,273.0 |
|
Total Liabilities and Shareholders’ Equity |
$ |
12,379.9 |
|
|
$ |
11,326.0 |
|
GATX CORPORATION AND SUBSIDIARIES SEGMENT DATA (UNAUDITED)
Three Months Ended (In millions) |
|||||||||||||||||||
|
Rail North
|
|
Rail
|
|
Engine
|
|
Other |
|
GATX
|
||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
||||||||||
Lease revenue |
$ |
249.2 |
|
|
$ |
86.3 |
|
|
$ |
8.1 |
|
|
$ |
8.1 |
|
|
$ |
351.7 |
|
Non-dedicated engine revenue |
|
— |
|
|
|
— |
|
|
|
18.1 |
|
|
|
— |
|
|
|
18.1 |
|
Other revenue |
|
29.3 |
|
|
|
4.3 |
|
|
|
— |
|
|
|
2.0 |
|
|
|
35.6 |
|
Total Revenues |
|
278.5 |
|
|
|
90.6 |
|
|
|
26.2 |
|
|
|
10.1 |
|
|
|
405.4 |
|
Expenses |
|
|
|
|
|
|
|
|
|
||||||||||
Maintenance expense |
|
77.7 |
|
|
|
17.0 |
|
|
|
— |
|
|
|
1.2 |
|
|
|
95.9 |
|
Depreciation expense |
|
69.2 |
|
|
|
20.3 |
|
|
|
10.1 |
|
|
|
3.8 |
|
|
|
103.4 |
|
Operating lease expense |
|
8.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8.0 |
|
Other operating expense |
|
7.0 |
|
|
|
3.7 |
|
|
|
2.6 |
|
|
|
0.8 |
|
|
|
14.1 |
|
Total Expenses |
|
161.9 |
|
|
|
41.0 |
|
|
|
12.7 |
|
|
|
5.8 |
|
|
|
221.4 |
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
||||||||||
Net gain on asset dispositions |
|
46.7 |
|
|
|
1.7 |
|
|
|
— |
|
|
|
0.1 |
|
|
|
48.5 |
|
Interest (expense) income, net |
|
(60.2 |
) |
|
|
(18.5 |
) |
|
|
(11.3 |
) |
|
|
1.1 |
|
|
|
(88.9 |
) |
Other (expense) income |
|
(0.8 |
) |
|
|
1.1 |
|
|
|
0.1 |
|
|
|
(1.3 |
) |
|
|
(0.9 |
) |
Share of affiliates' pre-tax earnings |
|
0.1 |
|
|
|
— |
|
|
|
35.2 |
|
|
|
— |
|
|
|
35.3 |
|
Segment profit |
$ |
102.4 |
|
|
$ |
33.9 |
|
|
$ |
37.5 |
|
|
$ |
4.2 |
|
|
$ |
178.0 |
|
Less: |
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative expense |
|
57.2 |
|
||||||||||||||||
Income taxes (includes |
|
31.8 |
|
||||||||||||||||
Net income |
$ |
89.0 |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Selected Data: |
|
|
|
|
|
|
|
|
|
||||||||||
Investment volume |
$ |
325.9 |
|
|
$ |
80.6 |
|
|
$ |
94.8 |
|
|
$ |
3.2 |
|
|
$ |
504.5 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset Remarketing Income: |
|
|
|
|
|
|
|
|
|
||||||||||
Net gains on disposition of owned assets |
$ |
43.6 |
|
|
$ |
1.2 |
|
|
$ |
— |
|
|
$ |
0.1 |
|
|
$ |
44.9 |
|
Residual sharing income |
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Non-remarketing net gains (1) |
|
3.0 |
|
|
|
0.5 |
|
|
|
— |
|
|
|
— |
|
|
|
3.5 |
|
|
$ |
46.7 |
|
|
$ |
1.7 |
|
|
$ |
— |
|
|
$ |
0.1 |
|
|
$ |
48.5 |
|
__________ (1) Includes net gains from scrapping of railcars. |
GATX CORPORATION AND SUBSIDIARIES SEGMENT DATA (UNAUDITED)
Three Months Ended (In millions) |
||||||||||||||||||
|
Rail North
|
|
Rail
|
|
Engine
|
|
Other |
|
GATX
|
|||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|||||||||
Lease revenue |
$ |
225.2 |
|
|
$ |
75.6 |
|
|
$ |
8.1 |
|
|
$ |
8.3 |
|
$ |
317.2 |
|
Non-dedicated engine revenue |
|
— |
|
|
|
— |
|
|
|
13.6 |
|
|
|
— |
|
|
13.6 |
|
Marine operating revenue |
|
— |
|
|
|
— |
|
|
|
0.6 |
|
|
|
— |
|
|
0.6 |
|
Other revenue |
|
22.7 |
|
|
|
3.6 |
|
|
|
0.1 |
|
|
|
2.3 |
|
|
28.7 |
|
Total Revenues |
|
247.9 |
|
|
|
79.2 |
|
|
|
22.4 |
|
|
|
10.6 |
|
|
360.1 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|||||||||
Maintenance expense |
|
69.4 |
|
|
|
17.1 |
|
|
|
— |
|
|
|
1.4 |
|
|
87.9 |
|
Marine operating expense |
|
— |
|
|
|
— |
|
|
|
1.0 |
|
|
|
— |
|
|
1.0 |
|
Depreciation expense |
|
66.9 |
|
|
|
17.5 |
|
|
|
8.4 |
|
|
|
3.4 |
|
|
96.2 |
|
Operating lease expense |
|
9.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
9.0 |
|
Other operating expense |
|
6.5 |
|
|
|
2.7 |
|
|
|
2.1 |
|
|
|
0.7 |
|
|
12.0 |
|
Total Expenses |
|
151.8 |
|
|
|
37.3 |
|
|
|
11.5 |
|
|
|
5.5 |
|
|
206.1 |
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|||||||||
Net gain on asset dispositions |
|
15.5 |
|
|
|
0.9 |
|
|
|
0.2 |
|
|
|
0.3 |
|
|
16.9 |
|
Interest (expense) income, net |
|
(46.6 |
) |
|
|
(14.5 |
) |
|
|
(8.7 |
) |
|
|
1.7 |
|
|
(68.1 |
) |
Other income (expense) |
|
1.2 |
|
|
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
0.9 |
|
|
1.8 |
|
Share of affiliates' pre-tax (loss) earnings |
|
(0.1 |
) |
|
|
— |
|
|
|
18.0 |
|
|
|
— |
|
|
17.9 |
|
Segment profit |
$ |
66.1 |
|
|
$ |
28.2 |
|
|
$ |
20.2 |
|
|
$ |
8.0 |
|
$ |
122.5 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||||||||
Selling, general and administrative expense |
|
51.0 |
|
|||||||||||||||
Income taxes (includes |
|
19.0 |
|
|||||||||||||||
Net income |
$ |
52.5 |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Selected Data: |
|
|
|
|
|
|
|
|
|
|||||||||
Investment volume |
$ |
197.0 |
|
|
$ |
129.6 |
|
|
$ |
28.3 |
|
|
$ |
9.0 |
|
$ |
363.9 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Asset Remarketing Income: |
|
|
|
|
|
|
|
|
|
|||||||||
Net gains on disposition of owned assets |
$ |
13.0 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.1 |
|
$ |
13.1 |
|
Residual sharing income |
|
0.1 |
|
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
0.3 |
|
Non-remarketing net gains (1) |
|
2.4 |
|
|
|
0.9 |
|
|
|
— |
|
|
|
0.2 |
|
|
3.5 |
|
|
$ |
15.5 |
|
|
$ |
0.9 |
|
|
$ |
0.2 |
|
|
$ |
0.3 |
|
$ |
16.9 |
|
__________ (1) Includes net gains from scrapping of railcars. |
GATX CORPORATION AND SUBSIDIARIES SEGMENT DATA (UNAUDITED)
Nine Months Ended (In millions) |
|||||||||||||||||||
|
Rail North
|
|
Rail
|
|
Engine
|
|
Other |
|
GATX
|
||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
||||||||||
Lease revenue |
$ |
727.8 |
|
|
$ |
248.9 |
|
|
$ |
24.3 |
|
|
$ |
23.6 |
|
|
$ |
1,024.6 |
|
Non-dedicated engine revenue |
|
— |
|
|
|
— |
|
|
|
45.0 |
|
|
|
— |
|
|
|
45.0 |
|
Other revenue |
|
86.1 |
|
|
|
10.6 |
|
|
|
— |
|
|
|
5.7 |
|
|
|
102.4 |
|
Total Revenues |
|
813.9 |
|
|
|
259.5 |
|
|
|
69.3 |
|
|
|
29.3 |
|
|
|
1,172.0 |
|
Expenses |
|
|
|
|
|
|
|
|
|
||||||||||
Maintenance expense |
|
228.0 |
|
|
|
52.7 |
|
|
|
— |
|
|
|
3.2 |
|
|
|
283.9 |
|
Depreciation expense |
|
201.1 |
|
|
|
58.6 |
|
|
|
27.1 |
|
|
|
11.1 |
|
|
|
297.9 |
|
Operating lease expense |
|
26.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26.0 |
|
Other operating expense |
|
20.1 |
|
|
|
10.8 |
|
|
|
7.0 |
|
|
|
3.6 |
|
|
|
41.5 |
|
Total Expenses |
|
475.2 |
|
|
|
122.1 |
|
|
|
34.1 |
|
|
|
17.9 |
|
|
|
649.3 |
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
||||||||||
Net gain on asset dispositions |
|
105.8 |
|
|
|
3.7 |
|
|
|
0.6 |
|
|
|
0.2 |
|
|
|
110.3 |
|
Interest (expense) income, net |
|
(169.9 |
) |
|
|
(52.7 |
) |
|
|
(30.3 |
) |
|
|
3.4 |
|
|
|
(249.5 |
) |
Other (expense) income |
|
(3.2 |
) |
|
|
0.8 |
|
|
|
0.3 |
|
|
|
(8.8 |
) |
|
|
(10.9 |
) |
Share of affiliates' pre-tax earnings |
|
0.1 |
|
|
|
— |
|
|
|
75.8 |
|
|
|
— |
|
|
|
75.9 |
|
Segment profit |
$ |
271.5 |
|
|
$ |
89.2 |
|
|
$ |
81.6 |
|
|
$ |
6.2 |
|
|
$ |
448.5 |
|
Less: |
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative expense |
|
171.7 |
|
||||||||||||||||
Income taxes (includes |
|
69.1 |
|
||||||||||||||||
Net income |
$ |
207.7 |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Selected Data: |
|
|
|
|
|
|
|
|
|
||||||||||
Investment volume |
$ |
955.7 |
|
|
$ |
190.1 |
|
|
$ |
166.1 |
|
|
$ |
13.2 |
|
|
$ |
1,325.1 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset Remarketing Income: |
|
|
|
|
|
|
|
|
|
||||||||||
Net gains on disposition of owned assets |
$ |
96.3 |
|
|
$ |
1.3 |
|
|
$ |
0.6 |
|
|
$ |
0.2 |
|
|
$ |
98.4 |
|
Residual sharing income |
|
0.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
Non-remarketing net gains (1) |
|
9.2 |
|
|
|
2.4 |
|
|
|
— |
|
|
|
— |
|
|
|
11.6 |
|
|
$ |
105.8 |
|
|
$ |
3.7 |
|
|
$ |
0.6 |
|
|
$ |
0.2 |
|
|
$ |
110.3 |
|
__________ (1) Includes net gains from scrapping of railcars. |
GATX CORPORATION AND SUBSIDIARIES SEGMENT DATA (UNAUDITED)
Nine Months Ended (In millions) |
||||||||||||||||||
|
Rail North
|
|
Rail
|
|
Engine
|
|
Other |
|
GATX
|
|||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|||||||||
Lease revenue |
$ |
659.2 |
|
|
$ |
219.1 |
|
|
$ |
24.5 |
|
|
$ |
25.0 |
|
$ |
927.8 |
|
Non-dedicated engine revenue |
|
— |
|
|
|
— |
|
|
|
24.5 |
|
|
|
— |
|
|
24.5 |
|
Marine operating revenue |
|
— |
|
|
|
— |
|
|
|
6.1 |
|
|
|
— |
|
|
6.1 |
|
Other revenue |
|
68.0 |
|
|
|
9.6 |
|
|
|
0.1 |
|
|
|
6.1 |
|
|
83.8 |
|
Total Revenues |
|
727.2 |
|
|
|
228.7 |
|
|
|
55.2 |
|
|
|
31.1 |
|
|
1,042.2 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|||||||||
Maintenance expense |
|
203.1 |
|
|
|
47.6 |
|
|
|
— |
|
|
|
3.4 |
|
|
254.1 |
|
Marine operating expense |
|
— |
|
|
|
— |
|
|
|
5.4 |
|
|
|
— |
|
|
5.4 |
|
Depreciation expense |
|
198.5 |
|
|
|
49.8 |
|
|
|
19.9 |
|
|
|
9.9 |
|
|
278.1 |
|
Operating lease expense |
|
27.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
27.0 |
|
Other operating expense |
|
20.2 |
|
|
|
7.2 |
|
|
|
4.4 |
|
|
|
2.2 |
|
|
34.0 |
|
Total Expenses |
|
448.8 |
|
|
|
104.6 |
|
|
|
29.7 |
|
|
|
15.5 |
|
|
598.6 |
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|||||||||
Net gain on asset dispositions |
|
97.4 |
|
|
|
2.4 |
|
|
|
4.7 |
|
|
|
0.6 |
|
|
105.1 |
|
Interest (expense) income, net |
|
(133.4 |
) |
|
|
(40.5 |
) |
|
|
(20.9 |
) |
|
|
4.0 |
|
|
(190.8 |
) |
Other (expense) income |
|
(1.3 |
) |
|
|
(7.0 |
) |
|
|
(0.5 |
) |
|
|
1.7 |
|
|
(7.1 |
) |
Share of affiliates' pre-tax (losses) earnings |
|
(0.5 |
) |
|
|
— |
|
|
|
66.3 |
|
|
|
— |
|
|
65.8 |
|
Segment profit |
$ |
240.6 |
|
|
$ |
79.0 |
|
|
$ |
75.1 |
|
|
$ |
21.9 |
|
$ |
416.6 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||||||||
Selling, general and administrative expense |
|
153.4 |
|
|||||||||||||||
Income taxes (includes |
|
70.0 |
|
|||||||||||||||
Net income |
$ |
193.2 |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Selected Data: |
|
|
|
|
|
|
|
|
|
|||||||||
Investment volume |
$ |
654.8 |
|
|
$ |
288.0 |
|
|
$ |
267.3 |
|
|
$ |
27.4 |
|
$ |
1,237.5 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Asset Remarketing Income: |
|
|
|
|
|
|
|
|
|
|||||||||
Net gains on disposition of owned assets |
$ |
88.4 |
|
|
$ |
0.5 |
|
|
$ |
5.5 |
|
|
$ |
0.3 |
|
$ |
94.7 |
|
Residual sharing income |
|
0.3 |
|
|
|
— |
|
|
|
0.4 |
|
|
|
— |
|
|
0.7 |
|
Non-remarketing net gains (1) |
|
8.7 |
|
|
|
1.9 |
|
|
|
— |
|
|
|
0.3 |
|
|
10.9 |
|
Asset impairments |
|
— |
|
|
|
— |
|
|
|
(1.2 |
) |
|
|
— |
|
|
(1.2 |
) |
|
$ |
97.4 |
|
|
$ |
2.4 |
|
|
$ |
4.7 |
|
|
$ |
0.6 |
|
$ |
105.1 |
|
__________ (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
|
|
Nine Months Ended
|
|||||||||||
|
2024 |
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
|||
Net income (GAAP) |
$ |
89.0 |
|
|
$ |
52.5 |
|
$ |
207.7 |
|
|
$ |
193.2 |
|
Adjustments attributable to consolidated pre-tax income: |
|
|
|
|
|
|
|
|||||||
Litigation claims settlements (2) |
|
3.3 |
|
|
|
— |
|
|
3.3 |
|
|
|
— |
|
Environmental reserves (3) |
$ |
— |
|
|
$ |
— |
|
$ |
10.7 |
|
|
$ |
— |
|
Net (gain) loss on Specialized Gas Vessels at |
|
— |
|
|
|
— |
|
|
(0.6 |
) |
|
|
1.4 |
|
Net gain on Rail Russia at |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(0.3 |
) |
Total adjustments attributable to consolidated pre-tax income |
$ |
3.3 |
|
|
$ |
— |
|
$ |
13.4 |
|
|
$ |
1.1 |
|
Income taxes thereon, based on applicable effective tax rate |
|
(0.8 |
) |
|
|
— |
|
|
(3.5 |
) |
|
|
— |
|
Net income, excluding tax adjustments and other items (non-GAAP) |
$ |
91.5 |
|
|
$ |
52.5 |
|
$ |
217.6 |
|
|
$ |
194.3 |
|
Impact of Tax Adjustments and Other Items on Diluted Earnings per Share (1) |
|||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Diluted earnings per share (GAAP) |
$ |
2.43 |
|
$ |
1.44 |
|
$ |
5.68 |
|
$ |
5.30 |
Diluted earnings per share, excluding tax adjustments and other items (non-GAAP) |
$ |
2.50 |
|
$ |
1.44 |
|
$ |
5.95 |
|
$ |
5.33 |
_________ | ||
(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) |
Expenses recorded for the settlement of litigation claims arising out of legacy business operations. |
|
(3) |
Reserves recorded for our share of anticipated environmental remediation costs arising out of prior operations and legacy businesses. |
|
(4) |
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. As of |
|
(5) |
In 2022, we made the decision to exit our rail business in |
GATX CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION (UNAUDITED) (In millions, except leverage) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Assets, Excluding Cash, by Segment |
||||||||||||||||||||
|
|
$ |
7,643.7 |
|
|
$ |
7,416.0 |
|
|
$ |
7,214.1 |
|
|
$ |
6,984.9 |
|
|
$ |
6,760.5 |
|
|
|
|
2,298.6 |
|
|
|
2,168.3 |
|
|
|
2,142.1 |
|
|
|
2,150.8 |
|
|
|
1,951.5 |
|
|
|
|
1,544.7 |
|
|
|
1,431.7 |
|
|
|
1,354.4 |
|
|
|
1,343.2 |
|
|
|
1,363.8 |
|
Other |
|
|
389.1 |
|
|
|
382.8 |
|
|
|
389.3 |
|
|
|
396.3 |
|
|
|
368.5 |
|
Total Assets, excluding cash |
|
$ |
11,876.1 |
|
|
$ |
11,398.8 |
|
|
$ |
11,099.9 |
|
|
$ |
10,875.2 |
|
|
$ |
10,444.3 |
|
Debt and Lease Obligations, Net of Unrestricted Cash |
||||||||||||||||||||
Unrestricted cash |
|
$ |
(503.7 |
) |
|
$ |
(823.6 |
) |
|
$ |
(479.1 |
) |
|
$ |
(450.7 |
) |
|
$ |
(203.1 |
) |
Commercial paper and bank credit facilities |
|
|
11.1 |
|
|
|
10.7 |
|
|
|
10.8 |
|
|
|
11.0 |
|
|
|
12.3 |
|
Recourse debt |
|
|
8,293.5 |
|
|
|
8,235.7 |
|
|
|
7,624.5 |
|
|
|
7,388.1 |
|
|
|
6,835.6 |
|
Operating lease obligations |
|
|
187.5 |
|
|
|
209.3 |
|
|
|
215.2 |
|
|
|
226.8 |
|
|
|
233.2 |
|
Total debt and lease obligations, net of unrestricted cash |
|
$ |
7,988.4 |
|
|
$ |
7,632.1 |
|
|
$ |
7,371.4 |
|
|
$ |
7,175.2 |
|
|
$ |
6,878.0 |
|
Total recourse debt (1) |
|
$ |
7,988.4 |
|
|
$ |
7,632.1 |
|
|
$ |
7,371.4 |
|
|
$ |
7,175.2 |
|
|
$ |
6,878.0 |
|
Shareholders’ Equity |
|
$ |
2,436.7 |
|
|
$ |
2,343.4 |
|
|
$ |
2,324.3 |
|
|
$ |
2,273.0 |
|
|
$ |
2,174.5 |
|
Recourse Leverage (2) |
|
|
3.3 |
|
|
|
3.3 |
|
|
|
3.2 |
|
|
|
3.2 |
|
|
|
3.2 |
|
_________ |
||
(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 |
|
$ |
12,379.9 |
|
|
$ |
12,222.6 |
|
|
$ |
11,579.1 |
|
|
$ |
11,326.0 |
|
|
$ |
10,647.5 |
|
Less: cash |
|
|
(503.8 |
) |
|
|
(823.8 |
) |
|
|
(479.2 |
) |
|
|
(450.8 |
) |
|
|
(203.2 |
) |
Total Assets, excluding cash |
|
$ |
11,876.1 |
|
|
$ |
11,398.8 |
|
|
$ |
11,099.9 |
|
|
$ |
10,875.2 |
|
|
$ |
10,444.3 |
|
GATX CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION (UNAUDITED) (Continued) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
Rail North America Statistics |
|
|
|
|
|
|
|
|
|
|||||
Lease Price Index (LPI) (1) |
|
|
|
|
|
|
|
|
|
|||||
Average renewal lease rate change |
26.6 |
% |
|
29.4 |
% |
|
33.0 |
% |
|
33.5 |
% |
|
33.4 |
% |
Average renewal term (months) |
59 |
|
|
61 |
|
|
64 |
|
|
65 |
|
|
65 |
|
Renewal Success Rate (2) |
82.0 |
% |
|
84.1 |
% |
|
83.4 |
% |
|
87.1 |
% |
|
83.6 |
% |
Fleet Rollforward (3) |
|
|
|
|
|
|
|
|
|
|||||
Beginning balance |
102,086 |
|
|
101,687 |
|
|
101,167 |
|
|
100,656 |
|
|
100,585 |
|
Railcars added |
1,474 |
|
|
1,337 |
|
|
1,422 |
|
|
1,688 |
|
|
791 |
|
Railcars scrapped |
(360 |
) |
|
(389 |
) |
|
(375 |
) |
|
(354 |
) |
|
(292 |
) |
Railcars sold |
(503 |
) |
|
(549 |
) |
|
(527 |
) |
|
(823 |
) |
|
(428 |
) |
Ending balance |
102,697 |
|
|
102,086 |
|
|
101,687 |
|
|
101,167 |
|
|
100,656 |
|
Utilization |
99.3 |
% |
|
99.3 |
% |
|
99.4 |
% |
|
99.3 |
% |
|
99.3 |
% |
Average active railcars |
101,629 |
|
|
101,181 |
|
|
100,677 |
|
|
100,197 |
|
|
99,796 |
|
Boxcar Fleet Rollforward |
|
|
|
|
|
|
|
|
|
|||||
Beginning balance |
8,990 |
|
|
9,670 |
|
|
9,311 |
|
|
9,087 |
|
|
8,959 |
|
Boxcars added |
— |
|
|
— |
|
|
587 |
|
|
424 |
|
|
316 |
|
Boxcars scrapped |
(211 |
) |
|
(555 |
) |
|
(228 |
) |
|
(152 |
) |
|
(95 |
) |
Boxcars sold |
— |
|
|
(125 |
) |
|
— |
|
|
(48 |
) |
|
(93 |
) |
Ending balance |
8,779 |
|
|
8,990 |
|
|
9,670 |
|
|
9,311 |
|
|
9,087 |
|
Utilization |
99.8 |
% |
|
99.8 |
% |
|
99.8 |
% |
|
100.0 |
% |
|
99.7 |
% |
Average active railcars |
8,848 |
|
|
9,304 |
|
|
9,583 |
|
|
9,207 |
|
|
8,985 |
|
Rail North America Industry Statistics |
|
|
|
|
|
|
|
|
|
|||||
Manufacturing Capacity Utilization Index (4) |
77.5 |
% |
|
78.2 |
% |
|
77.8 |
% |
|
78.7 |
% |
|
79.5 |
% |
Year-over-year Change in |
(3.3 |
)% |
|
(4.5 |
)% |
|
(4.2 |
)% |
|
0.7 |
% |
|
30.0 |
% |
Year-over-year Change in |
4.2 |
% |
|
4.3 |
% |
|
4.5 |
% |
|
(0.3 |
)% |
|
(2.6 |
)% |
Year-over-year Change in |
10.4 |
% |
|
11.1 |
% |
|
7.7 |
% |
|
11.1 |
% |
|
10.5 |
% |
Production Backlog at Railcar Manufacturers (6) |
n/a (7) |
|
45,238 |
|
|
46,413 |
|
|
51,836 |
|
|
58,680 |
|
_________ |
||
(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 LPI calculation includes all renewal activity based on a 12-month trailing average, and the renewals are weighted by the count of all renewals over the 12 month period. 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 |
|
(5) |
As reported by the |
|
(6) |
As reported by the |
|
(7) |
Not available, not published as of the date of this release. |
GATX CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INFORMATION (UNAUDITED) (Continued) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||
Rail Europe Statistics |
|
|
|
|
|
|
|
|
|
|||||
Fleet Rollforward |
|
|
|
|
|
|
|
|
|
|||||
Beginning balance |
29,649 |
|
|
29,371 |
|
|
29,216 |
|
|
29,102 |
|
|
28,759 |
|
Railcars added |
410 |
|
|
388 |
|
|
322 |
|
|
371 |
|
|
446 |
|
Railcars scrapped or sold |
(106 |
) |
|
(110 |
) |
|
(167 |
) |
|
(257 |
) |
|
(103 |
) |
Ending balance |
29,953 |
|
|
29,649 |
|
|
29,371 |
|
|
29,216 |
|
|
29,102 |
|
Utilization |
95.9 |
% |
|
95.8 |
% |
|
95.3 |
% |
|
95.9 |
% |
|
96.0 |
% |
Average active railcars |
28,626 |
|
|
28,198 |
|
|
27,984 |
|
|
28,003 |
|
|
27,884 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Rail India Statistics |
|
|
|
|
|
|
|
|
|
|||||
Fleet Rollforward |
|
|
|
|
|
|
|
|
|
|||||
Beginning balance |
9,904 |
|
|
9,501 |
|
|
8,805 |
|
|
7,884 |
|
|
6,927 |
|
Railcars added |
457 |
|
|
408 |
|
|
696 |
|
|
921 |
|
|
957 |
|
Railcars scrapped or sold |
— |
|
|
(5 |
) |
|
— |
|
|
— |
|
|
— |
|
Ending balance |
10,361 |
|
|
9,904 |
|
|
9,501 |
|
|
8,805 |
|
|
7,884 |
|
Utilization |
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
Average active railcars |
10,165 |
|
|
9,711 |
|
|
9,089 |
|
|
8,321 |
|
|
7,366 |
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241022955661/en/
Senior Director, Investor Relations, ESG, and
312-621-4285
shari.hellerman@gatx.com
Source: