- 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
GATX Corporation (NYSE: GATX) today reported 2024 third-quarter
net income of $89.0 million, or $2.43 per diluted share, compared
to net income of $52.5 million, or $1.44 per diluted share, in the
third quarter of 2023. The 2024 third-quarter results include a net
negative impact of $2.5 million, or $0.07 per diluted share, from
Tax Adjustments and Other Items.
Net income for the first nine months of 2024 was $207.7 million,
or $5.68 per diluted share, compared to $193.2 million, or $5.30
per diluted share, in the prior year period. The 2024 year-to-date
results include a net negative impact of $9.9 million, or $0.27 per
diluted share, from Tax Adjustments and Other Items. The 2023
year-to-date results include a net negative impact of $1.1 million,
or $0.03 per diluted share, from Tax Adjustments and Other Items.
Details related to these items are provided in the attached
Supplemental Information under Impact of Tax Adjustments and Other
Items.
"Operating conditions across our global markets remain
consistent with our expectations coming into the year," said Robert
C. Lyons, president and chief executive officer of GATX. "Our
commercial and operations teams at Rail North America continue to
execute at a high level. GATX Rail North America's fleet
utilization was 99.3% at the end of the third quarter and the
renewal success rate was over 80%. The renewal lease rate change of
GATX’s Lease Price Index was a positive 26.6% with an average
renewal term of 59 months.
"At Rail North America, we capitalized on an active secondary
railcar market and generated third-quarter remarketing income of
over $43 million, bringing year-to-date remarketing income to over
$96 million. Furthermore, we identified opportunities to grow our
asset base during the quarter, acquiring over 1,000 railcars in
addition to those acquired under our supply agreement.
"Rail International performed well as we continue to take
delivery of new railcars in Europe and India. GATX Rail Europe's
fleet utilization was 95.9% at the end of the quarter. GATX Rail
India, where fleet utilization remained at 100%, continues to
experience very strong demand for railcars and sees substantial
opportunities for new railcar investments.
"In Engine Leasing, third-quarter results were driven by
excellent performance at the Rolls-Royce and Partners Finance
affiliates, as demand for aircraft spare engines remains robust. We
continued to identify attractive opportunities to increase our
investment in engines, both directly and through RRPF affiliates.
In the third quarter, we added four engines to our wholly owned
portfolio for $94.8 million."
Mr. Lyons concluded, "Based on current market conditions and our
year-to-date performance, we expect 2024 full-year earnings to be
in the range of $7.50–$7.70 per diluted share. This guidance
excludes the impact of Tax Benefits and Other Items."
RAIL NORTH AMERICA
Rail North America reported segment profit of $102.4 million in
the third quarter of 2024, compared to $66.1 million in the third
quarter of 2023. Higher 2024 third-quarter segment profit was
driven by higher gains on asset dispositions and higher lease
revenue. Year to date 2024, Rail North America reported segment
profit of $271.5 million, compared to $240.6 million in the same
period of 2023. Higher 2024 year-to-date segment profit was
predominately driven by higher lease revenue, partially offset by
higher interest expense.
As of Sept. 30, 2024, Rail North America’s wholly owned fleet
was composed of over 111,000 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 third quarter of 2024, consistent with the end of the prior
quarter and the end of the third quarter of 2023.
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 $325.9 million.
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 $33.9 million in the
third quarter of 2024, compared to $28.2 million in the third
quarter of 2023. Year to date 2024, Rail International reported
segment profit of $89.2 million, compared to $79.0 million in the
same period of 2023. The 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, higher 2024 third-quarter and year-to-date
segment profit was driven by more railcars on lease and higher
lease rates.
As of Sept. 30, 2024, GATX Rail Europe’s (GRE) fleet consisted
of nearly 30,000 cars. 2024 third-quarter fleet utilization was
95.9%, compared to 95.8% at the end of the prior quarter and 96.0%
at the end of the third quarter of 2023.
As of Sept. 30, 2024, Rail India's fleet consisted of over
10,300 railcars. 2024 third-quarter fleet utilization was 100%,
consistent with the end of the prior quarter and the end of the
third 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 $37.5 million in the
third quarter of 2024, compared to segment profit of $20.2 million
in the third quarter of 2023. Year to date 2024, segment profit was
$81.6 million, compared to segment profit of $75.1 million in the
same period of 2023.
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 these impacts, higher 2024 third-quarter and
year-to-date segment profit was predominately driven by strong
performance at the Rolls-Royce and Partners Finance (RRPF)
affiliates. Earnings from GATX Engine Leasing, our wholly owned
portfolio, were also higher in the comparative periods due to more
engines under ownership.
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
third-quarter results. Call details are as follows:
Tuesday, Oct. 22, 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: 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 2 p.m. (Eastern Time), Oct. 22, 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
September 30
Nine Months Ended
September 30
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)
September 30
December 31
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
Goodwill
120.9
120.0
Other Assets ($0.4 and $0.8 related
to assets held for sale)
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 September
30, 2024
(In millions)
Rail North America
Rail International
Engine Leasing
Other
GATX Consolidated
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 $8.9 related to
affiliates' earnings)
31.8
Net income
$
89.0
Selected
Data:
Investment volume
$
325.9
$
80.6
$
94.8
$
3.2
$
504.5
Net Gain on Asset Dispositions
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 September
30, 2023
(In millions)
Rail North America
Rail International
Engine Leasing
Other
GATX Consolidated
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 $4.5 related to
affiliates' earnings)
19.0
Net income
$
52.5
Selected
Data:
Investment volume
$
197.0
$
129.6
$
28.3
$
9.0
$
363.9
Net Gain on Asset Dispositions
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 September
30, 2024
(In millions)
Rail North America
Rail International
Engine Leasing
Other
GATX Consolidated
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 $17.2 related to
affiliates' earnings)
69.1
Net income
$
207.7
Selected
Data:
Investment volume
$
955.7
$
190.1
$
166.1
$
13.2
$
1,325.1
Net Gain on Asset Dispositions
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 September
30, 2023
(In millions)
Rail North America
Rail International
Engine Leasing
Other
GATX Consolidated
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 $17.7 related to
affiliates' earnings)
70.0
Net income
$
193.2
Selected
Data:
Investment volume
$
654.8
$
288.0
$
267.3
$
27.4
$
1,237.5
Net Gain on Asset Dispositions
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
September 30
Nine Months Ended
September 30
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 Engine Leasing (4)
—
—
(0.6
)
1.4
Net gain on Rail Russia at Rail
International (5)
—
—
—
(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
September 30
Nine Months Ended
September 30
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 December 31, 2023, all vessels had been sold.
(5)
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)
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
Total Assets,
Excluding Cash, by Segment
Rail North America
$
7,643.7
$
7,416.0
$
7,214.1
$
6,984.9
$
6,760.5
Rail International
2,298.6
2,168.3
2,142.1
2,150.8
1,951.5
Engine Leasing
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)
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
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 U.S. Carloadings
(excl. intermodal) (5)
(3.3
)%
(4.5
)%
(4.2
)%
0.7
%
30.0
%
Year-over-year Change in U.S. Carloadings
(chemical) (5)
4.2
%
4.3
%
4.5
%
(0.3
)%
(2.6
)%
Year-over-year Change in U.S. Carloadings
(petroleum) (5)
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 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)
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
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/
GATX Corporation Shari Hellerman Senior Director, Investor
Relations, ESG, and External Communications 312-621-4285
shari.hellerman@gatx.com
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