GATX Corporation (NYSE:GATX) today reported 2018 first quarter
net income of $76.3 million or $1.98 per diluted share, compared to
net income of $57.5 million or $1.44 per diluted share in the first
quarter of 2017.
Brian A. Kenney, president and chief executive
officer of GATX, stated, “The condition of the North American
railcar leasing market in the first quarter was consistent with our
expectations entering the year. Rail industry carload data
and operating metrics showed mixed performance relative to 2017,
and 2018 improvement in the railcar leasing market remains
uncertain due to the oversupply of existing railcars and the large
railcar manufacturing backlog.“GATX’s fleet utilization remained
stable at 98.2% in the quarter due to outstanding execution by our
commercial team. We continue to effectively deploy railcars and
have currently placed new railcar deliveries with customers through
the end of 2018. The renewal lease rate change of GATX’s Lease
Price Index (“LPI”) was negative 11.6%, with an average renewal
term of 34 months. While this LPI metric improved, we
expected quarterly volatility in 2018, and we still anticipate the
2018 annual change to be at least negative 25% as market lease
rates remain at low levels. The secondary railcar market was strong
as evidenced by our remarketing income of $50.0 million for the
quarter, which represents the majority of our expected remarketing
activity for 2018.“Rail International produced solid operating
results, with GATX Rail Europe’s fleet utilization at 96.7%. The
lease rate environment in Europe has stabilized and demand for new
cars remains steady. American Steamship Company’s sailing season
began at the end of March, and ten vessels are currently scheduled
to operate in 2018. The Rolls-Royce and Partners Finance
affiliates had another excellent quarter as demand for spare
aircraft engines continues to be strong.”Mr. Kenney concluded, “The
year is progressing as we expected, and therefore at this time our
2018 full-year earnings estimate is unchanged at $4.55 - $4.75 per
diluted share.”RAIL NORTH AMERICARail North
America reported segment profit of $108.9 million in the first
quarter of 2018, compared to $93.0 million in the first quarter of
2017. Higher gains on asset dispositions in the first quarter of
2018 were partially offset by lower lease revenue, resulting in
higher segment profit in 2018.At March 31, 2018, Rail North
America’s wholly owned fleet comprised approximately 119,000
railcars, including approximately 16,200 boxcars. The following
fleet statistics and performance discussion exclude the boxcar
fleet.Fleet utilization was 98.2% at the end of the first quarter,
compared to 98.2% at the end of the prior quarter and 99.1% at the
end of the first quarter of 2017. During the first quarter of 2018,
the renewal lease rate change of the GATX Lease Price Index (“LPI”)
was negative 11.6%. This compares to negative 32.4% in the prior
quarter and negative 32.6% in the first quarter of 2017. The
average lease renewal term for cars included in the LPI during the
first quarter was 34 months, compared to 36 months in the prior
quarter and 29 months in the first quarter of 2017. The first
quarter renewal success rate was 76.7%. Rail North America’s
investment volume during the first quarter was approximately $137
million.Additional fleet statistics, including information about
the boxcar fleet, and macroeconomic data related to Rail North
America’s business are provided on the last page of this press
release.RAIL INTERNATIONALRail International’s
segment profit was $19.0 million in the first quarter of 2018,
compared to $13.4 million in the first quarter of 2017. The
improvement in segment profit was primarily driven by more cars on
lease and a favorable foreign exchange variance.At March 31, 2018,
GATX Rail Europe’s (GRE) fleet consisted of approximately 23,000
cars and utilization was 96.7%, compared to 96.8% at the end of the
prior quarter and 95.0% at the end of the first quarter of 2017.
Additional fleet statistics for GRE are provided on the last page
of this press release.AMERICAN STEAMSHIP
COMPANYAmerican Steamship Company (ASC) reported a segment
profit of $0.8 million in the first quarter of 2018, compared to a
segment loss of $0.2 million in the first quarter of 2017. ASC’s
operations are limited during the first quarter as the vessels are
in winter lay-up from mid-January through
late-March.PORTFOLIO MANAGEMENTPortfolio
Management reported segment profit of $13.9 million in the first
quarter of 2018, compared to $14.7 million in the first quarter of
2017. The operating environment at Rolls-Royce and Partners Finance
affiliates is positive with higher affiliate income in the first
quarter of 2018.COMPANY DESCRIPTIONGATX
Corporation (NYSE:GATX) strives to be recognized as the finest
railcar leasing company in the world by its customers, its
shareholders, its employees and the communities where it operates.
As the leading global railcar lessor, GATX has been providing
quality railcars and services to its customers for 120 years. GATX
has been headquartered in Chicago, Illinois, since its founding in
1898. For more information, please visit the Company’s website at
www.gatx.com. TELECONFERENCE INFORMATIONGATX
Corporation will host a teleconference to discuss its 2018
first-quarter results. Call details are as follows:
Thursday, April 19th11:00 A.M.
Eastern TimeDomestic Dial-In:
1-800-667-5617International Dial-In: 1-334-323-0505Replay:
1-888-203-1112 or 1-719-457-0820/Access Code: 8245161
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. Following the call, a replay
will be available on the same site.
FORWARD-LOOKING
STATEMENTSStatements 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,” “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 in our other filings with the SEC, including our
Form 10-K for the year ended December 31, 2017 and subsequent
reports on Form 10-Q, could cause actual results to differ
materially from our current expectations expressed in
forward-looking statements:
|
|
|
- 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 our
railcars
- inability to maintain our assets on lease at satisfactory rates
due to oversupply of railcars in the market or other changes in
supply and demand
- a significant decline in customer demand for our railcars or
other assets or services, including as a result of:
- weak macroeconomic conditions
- weak market conditions in our customers’ businesses
- declines in harvest or production volumes
- adverse changes in the price of, or demand for,
commodities
- changes in railroad operations or efficiency
- changes in supply chains
- availability of pipelines, trucks, and other alternative modes
of transportation
- other operational or commercial needs or decisions of our
customers
- higher costs associated with increased railcar assignments
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
railcar purchase commitments
- reduced opportunities to generate asset remarketing income
|
|
- operational and financial risks related to our affiliate
investments, including the Rolls-Royce & Partners Finance joint
ventures
- the impact of changes to the Internal Revenue Code as a result
of the Tax Cuts and Jobs Act of 2017, and uncertainty as to how
this legislation will be interpreted and applied.
- fluctuations in foreign exchange rates
- failure to successfully negotiate collective bargaining
agreements with the unions representing a substantial portion of
our employees
- asset impairment charges we may be required to recognize
- deterioration of conditions in the capital markets, reductions
in our credit ratings, or increases in our financing costs
- competitive factors in our primary markets, including
competitors with a significantly lower cost of capital than
GATX
- risks related to international operations and expansion into
new geographic markets
- changes in, or failure to comply with, laws, rules, and
regulations
- inability to obtain cost-effective insurance
- environmental remediation costs
- inadequate allowances to cover credit losses in our
portfolio
- inability to maintain and secure our information technology
infrastructure from cybersecurity threats and related disruption of
our business
|
|
|
|
FOR FURTHER INFORMATION CONTACT:GATX
CorporationJennifer McManusDirector, Investor RelationsGATX
Corporation312-621-6409jennifer.mcmanus@gatx.com
Investor, corporate, financial, historical
financial, and news release information may be found at
www.gatx.com.
(04/19/18)
|
GATX CORPORATION AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)(In millions, except per share
data) |
|
|
Three Months Ended March
31 |
|
|
2018 |
|
2017 |
Revenues |
|
|
|
Lease revenue |
$ |
273.2 |
|
|
$ |
272.7 |
|
Marine operating
revenue |
14.2 |
|
|
17.0 |
|
Other revenue |
17.9 |
|
|
26.4 |
|
Total
Revenues |
305.3 |
|
|
316.1 |
|
Expenses |
|
|
|
Maintenance
expense |
81.2 |
|
|
77.9 |
|
Marine operating
expense |
12.5 |
|
|
12.9 |
|
Depreciation
expense |
77.4 |
|
|
72.0 |
|
Operating lease
expense |
13.0 |
|
|
15.8 |
|
Other operating
expense |
8.6 |
|
|
9.6 |
|
Selling, general and
administrative expense |
44.9 |
|
|
42.7 |
|
Total
Expenses |
237.6 |
|
|
230.9 |
|
Other Income
(Expense) |
|
|
|
Net gain on asset
dispositions |
56.1 |
|
|
24.9 |
|
Interest expense,
net |
(39.9 |
) |
|
(39.2 |
) |
Other expense |
(1.3 |
) |
|
(1.5 |
) |
Income before
Income Taxes and Share of Affiliates’ Earnings |
82.6 |
|
|
69.4 |
|
Income taxes |
(20.6 |
) |
|
(20.6 |
) |
Share of affiliates’
earnings, net of taxes |
14.3 |
|
|
8.7 |
|
Net
Income |
$ |
76.3 |
|
|
$ |
57.5 |
|
|
|
|
|
Share
Data |
|
|
|
Basic earnings per
share |
$ |
2.02 |
|
|
$ |
1.46 |
|
Average number of
common shares |
37.9 |
|
|
39.4 |
|
Diluted earnings per
share |
$ |
1.98 |
|
|
$ |
1.44 |
|
Average number of
common shares and common share equivalents |
38.5 |
|
|
39.9 |
|
Dividends declared per
common share |
$ |
0.44 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
|
GATX CORPORATION AND
SUBSIDIARIESCONSOLIDATED BALANCE SHEETS
(UNAUDITED)(In millions) |
|
|
|
March 31 |
|
December 31 |
|
|
2018 |
|
2017 |
Assets |
|
|
|
|
Cash and Cash
Equivalents |
|
$ |
233.1 |
|
|
$ |
296.5 |
|
Restricted
Cash |
|
4.3 |
|
|
3.2 |
|
Receivables |
|
|
|
|
Rent and other
receivables |
|
71.3 |
|
|
83.4 |
|
Finance leases |
|
133.8 |
|
|
136.1 |
|
Less: allowance for
losses |
|
(6.6 |
) |
|
(6.4 |
) |
|
|
198.5 |
|
|
213.1 |
|
|
|
|
|
|
Operating
Assets and Facilities |
|
9,191.8 |
|
|
9,045.4 |
|
Less: allowance for
depreciation |
|
(2,897.7 |
) |
|
(2,853.3 |
) |
|
|
6,294.1 |
|
|
6,192.1 |
|
|
|
|
|
|
Investments in
Affiliated Companies |
|
455.9 |
|
|
441.0 |
|
Goodwill |
|
87.3 |
|
|
85.6 |
|
Other
Assets |
|
194.8 |
|
|
190.9 |
|
Total
Assets |
|
$ |
7,468.0 |
|
|
$ |
7,422.4 |
|
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
Accounts
Payable and Accrued Expenses |
|
$ |
141.4 |
|
|
$ |
154.3 |
|
Debt |
|
|
|
|
Commercial paper and
borrowings under bank credit facilities |
|
4.4 |
|
|
4.3 |
|
Recourse |
|
4,359.5 |
|
|
4,371.7 |
|
Capital lease
obligations |
|
12.2 |
|
|
12.5 |
|
|
|
4,376.1 |
|
|
4,388.5 |
|
|
|
|
|
|
Deferred Income
Taxes |
|
879.8 |
|
|
853.7 |
|
Other
Liabilities |
|
231.0 |
|
|
233.2 |
|
Total
Liabilities |
|
5,628.3 |
|
|
5,629.7 |
|
Total
Shareholders’ Equity |
|
1,839.7 |
|
|
1,792.7 |
|
Total
Liabilities and Shareholders’ Equity |
|
$ |
7,468.0 |
|
|
$ |
7,422.4 |
|
|
|
GATX CORPORATION AND
SUBSIDIARIESSEGMENT DATA
(UNAUDITED)Three Months Ended March 31,
2018(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rail N.A. |
|
Rail Int’l |
|
ASC |
|
PortfolioManagement |
|
Other |
|
GATXConsolidated |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
$ |
219.5 |
|
|
$ |
52.4 |
|
|
$ |
1.0 |
|
|
$ |
0.3 |
|
|
$ |
— |
|
|
$ |
273.2 |
|
Marine operating
revenue |
— |
|
|
— |
|
|
9.8 |
|
|
4.4 |
|
|
— |
|
|
14.2 |
|
Other revenue |
15.8 |
|
|
2.0 |
|
|
— |
|
|
0.1 |
|
|
— |
|
|
17.9 |
|
Total Revenues |
235.3 |
|
|
54.4 |
|
|
10.8 |
|
|
4.8 |
|
|
— |
|
|
305.3 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Maintenance
expense |
68.1 |
|
|
12.5 |
|
|
0.6 |
|
|
— |
|
|
— |
|
|
81.2 |
|
Marine operating
expense |
— |
|
|
— |
|
|
8.2 |
|
|
4.3 |
|
|
— |
|
|
12.5 |
|
Depreciation
expense |
61.5 |
|
|
14.1 |
|
|
— |
|
|
1.8 |
|
|
— |
|
|
77.4 |
|
Operating lease
expense |
13.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
13.0 |
|
Other operating
expense |
6.9 |
|
|
1.5 |
|
|
— |
|
|
0.2 |
|
|
— |
|
|
8.6 |
|
Total Expenses |
149.5 |
|
|
28.1 |
|
|
8.8 |
|
|
6.3 |
|
|
— |
|
|
192.7 |
|
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
Net gain on asset
dispositions |
54.1 |
|
|
1.6 |
|
|
0.1 |
|
|
0.3 |
|
|
— |
|
|
56.1 |
|
Interest (expense)
income, net |
(30.2 |
) |
|
(8.7 |
) |
|
(1.3 |
) |
|
(2.3 |
) |
|
2.6 |
|
|
(39.9 |
) |
Other expense |
(0.9 |
) |
|
(0.2 |
) |
|
— |
|
|
— |
|
|
(0.2 |
) |
|
(1.3 |
) |
Share of affiliates’
pre-tax income |
0.1 |
|
|
— |
|
|
— |
|
|
17.4 |
|
|
— |
|
|
17.5 |
|
Segment profit |
$ |
108.9 |
|
|
$ |
19.0 |
|
|
$ |
0.8 |
|
|
$ |
13.9 |
|
|
$ |
2.4 |
|
|
$ |
145.0 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expense |
44.9 |
|
Income
taxes (includes $3.2 related to affiliates’ earnings) |
23.8 |
|
Net income |
$ |
76.3 |
|
Selected
Data: |
|
|
|
|
|
|
|
|
|
|
|
Investment volume |
$ |
136.5 |
|
|
$ |
29.5 |
|
|
$ |
11.7 |
|
|
$ |
— |
|
|
$ |
0.7 |
|
|
$ |
178.4 |
|
Net Gain on
Asset Dispositions |
|
|
|
|
|
|
|
|
|
|
|
Asset
Remarketing Income: |
|
|
|
|
|
|
|
|
|
|
|
Disposition gains on owned assets |
$ |
49.9 |
|
|
$ |
— |
|
|
$ |
0.1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
50.0 |
|
Residual
sharing income |
0.1 |
|
|
— |
|
|
— |
|
|
0.3 |
|
|
— |
|
|
0.4 |
|
Non-remarketing
disposition gains (1) |
4.1 |
|
|
1.6 |
|
|
— |
|
|
— |
|
|
— |
|
|
5.7 |
|
Asset impairments |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
$ |
54.1 |
|
|
$ |
1.6 |
|
|
$ |
0.1 |
|
|
$ |
0.3 |
|
|
$ |
— |
|
|
$ |
56.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes scrapping gains.
|
GATX CORPORATION AND
SUBSIDIARIESSEGMENT DATA
(UNAUDITED)Three Months Ended March 31,
2017(In millions) |
|
|
Rail N.A. |
|
Rail Int’l |
|
ASC |
|
PortfolioManagement |
|
Other |
|
GATXConsolidated |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
$ |
227.2 |
|
|
$ |
43.3 |
|
|
$ |
1.0 |
|
|
$ |
1.2 |
|
|
$ |
— |
|
|
$ |
272.7 |
|
Marine operating
revenue |
— |
|
|
— |
|
|
6.4 |
|
|
10.6 |
|
|
— |
|
|
17.0 |
|
Other revenue |
24.8 |
|
|
1.1 |
|
|
— |
|
|
0.5 |
|
|
— |
|
|
26.4 |
|
Total Revenues |
252.0 |
|
|
44.4 |
|
|
7.4 |
|
|
12.3 |
|
|
— |
|
|
316.1 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
Maintenance
expense |
67.7 |
|
|
10.0 |
|
|
0.2 |
|
|
— |
|
|
— |
|
|
77.9 |
|
Marine operating
expense |
— |
|
|
— |
|
|
5.3 |
|
|
7.6 |
|
|
— |
|
|
12.9 |
|
Depreciation
expense |
59.0 |
|
|
11.2 |
|
|
0.1 |
|
|
1.7 |
|
|
— |
|
|
72.0 |
|
Operating lease
expense |
15.0 |
|
|
— |
|
|
0.8 |
|
|
— |
|
|
— |
|
|
15.8 |
|
Other operating
expense |
8.1 |
|
|
1.2 |
|
|
— |
|
|
0.3 |
|
|
— |
|
|
9.6 |
|
Total Expenses |
149.8 |
|
|
22.4 |
|
|
6.4 |
|
|
9.6 |
|
|
— |
|
|
188.2 |
|
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
Net gain on asset
dispositions |
23.8 |
|
|
0.8 |
|
|
— |
|
|
0.3 |
|
|
— |
|
|
24.9 |
|
Interest (expense)
income, net |
(31.1 |
) |
|
(7.9 |
) |
|
(1.2 |
) |
|
(2.2 |
) |
|
3.2 |
|
|
(39.2 |
) |
Other (expense)
income |
(2.0 |
) |
|
(1.5 |
) |
|
— |
|
|
2.3 |
|
|
(0.3 |
) |
|
(1.5 |
) |
Share of affiliates’
pre-tax income |
0.1 |
|
|
— |
|
|
— |
|
|
11.6 |
|
|
— |
|
|
11.7 |
|
Segment profit (loss) |
$ |
93.0 |
|
|
$ |
13.4 |
|
|
$ |
(0.2 |
) |
|
$ |
14.7 |
|
|
$ |
2.9 |
|
|
$ |
123.8 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expense |
42.7 |
|
Income
taxes (includes $3.0 related to affiliates’ earnings) |
23.6 |
|
Net income |
$ |
57.5 |
|
Selected
Data: |
|
|
|
|
|
|
|
|
|
|
|
Investment volume |
$ |
102.8 |
|
|
$ |
18.7 |
|
|
$ |
7.3 |
|
|
$ |
— |
|
|
$ |
0.2 |
|
|
$ |
129.0 |
|
Net
Gain on Asset Dispositions |
|
|
|
|
|
|
|
|
Asset
Remarketing Income: |
|
|
|
|
|
|
|
|
|
|
|
Disposition gains on owned assets |
$ |
21.1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
21.1 |
|
Residual
sharing income |
0.1 |
|
|
— |
|
|
— |
|
|
0.3 |
|
|
— |
|
|
0.4 |
|
Non-remarketing
disposition gains (1) |
2.6 |
|
|
0.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
3.4 |
|
Asset impairments |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
$ |
23.8 |
|
|
$ |
0.8 |
|
|
$ |
— |
|
|
$ |
0.3 |
|
|
$ |
— |
|
|
$ |
24.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes scrapping gains.
|
GATX CORPORATION AND
SUBSIDIARIESSUPPLEMENTAL INFORMATION
(UNAUDITED)(In millions, except
leverage) |
|
|
|
3/31/2017 |
|
6/30/2017 |
|
9/30/2017 |
|
12/31/2017 |
|
3/31/2018 |
Assets by Segment, as adjusted (non-GAAP)* |
|
|
|
|
|
|
|
|
Rail North America |
|
$ |
5,269.4 |
|
|
$ |
5,304.3 |
|
|
$ |
5,296.3 |
|
|
$ |
5,334.0 |
|
|
$ |
5,362.2 |
|
Rail International |
|
1,116.0 |
|
|
1,209.3 |
|
|
1,249.4 |
|
|
1,291.5 |
|
|
1,329.0 |
|
ASC |
|
307.5 |
|
|
322.0 |
|
|
310.2 |
|
|
286.6 |
|
|
298.2 |
|
Portfolio
Management |
|
597.4 |
|
|
573.2 |
|
|
614.0 |
|
|
580.6 |
|
|
593.1 |
|
Other |
|
72.2 |
|
|
63.9 |
|
|
60.6 |
|
|
65.7 |
|
|
59.8 |
|
Total Assets, excluding
cash, as adjusted (non-GAAP) |
|
$ |
7,362.5 |
|
|
$ |
7,472.7 |
|
|
$ |
7,530.5 |
|
|
$ |
7,558.4 |
|
|
$ |
7,642.3 |
|
Debt, Net of
Unrestricted Cash* |
|
|
|
|
|
|
|
|
|
|
Unrestricted cash |
|
$ |
(155.2 |
) |
|
$ |
(284.3 |
) |
|
$ |
(199.2 |
) |
|
$ |
(296.5 |
) |
|
$ |
(233.1 |
) |
Commercial paper and
bank credit facilities |
|
3.0 |
|
|
15.7 |
|
|
15.7 |
|
|
4.3 |
|
|
4.4 |
|
Recourse debt |
|
4,250.9 |
|
|
4,261.2 |
|
|
4,266.7 |
|
|
4,371.7 |
|
|
4,359.5 |
|
Capital lease
obligations |
|
13.5 |
|
|
13.1 |
|
|
12.8 |
|
|
12.5 |
|
|
12.2 |
|
Total debt, net of
unrestricted cash (GAAP) |
|
4,112.2 |
|
|
4,005.7 |
|
|
4,096.0 |
|
|
4,092.0 |
|
|
4,143.0 |
|
Off-balance sheet
recourse debt |
|
424.6 |
|
|
488.6 |
|
|
471.5 |
|
|
435.7 |
|
|
411.7 |
|
Total recourse debt,
net of unrestricted cash, as adjusted (non-GAAP) (1) |
|
$ |
4,536.8 |
|
|
$ |
4,494.3 |
|
|
$ |
4,567.5 |
|
|
$ |
4,527.7 |
|
|
$ |
4,554.7 |
|
Shareholders’ Equity
(2) |
|
$ |
1,385.2 |
|
|
$ |
1,443.0 |
|
|
$ |
1,470.2 |
|
|
$ |
1,792.7 |
|
|
$ |
1,839.7 |
|
Recourse Leverage
(3) |
|
3.3 |
|
|
3.1 |
|
|
3.1 |
|
|
2.5 |
|
|
2.5 |
|
_________
(1) Includes on- and off-balance sheet
recourse debt; capital lease obligations; commercial paper and bank
credit facilities, net of unrestricted cash.(2)
Balances for 12/31/2017 and 3/31/2018 reflect the impact of the Tax
Cuts and Jobs Act recognized in the fourth quarter of
2017.(3) Calculated as total recourse debt /
shareholder’s equity.
Reconciliation of Total Assets, excluding cash (GAAP) to
Total Assets, excluding cash, as adjusted (non-GAAP) |
Total Assets |
|
$ |
7,096.9 |
|
|
$ |
7,272.1 |
|
|
$ |
7,261.9 |
|
|
$ |
7,422.4 |
|
|
$ |
7,468.0 |
|
Less:
cash |
|
(159.0 |
) |
|
(288.0 |
) |
|
(202.9 |
) |
|
(299.7 |
) |
|
(237.4 |
) |
Total Assets, excluding
cash (GAAP) |
|
6,937.9 |
|
|
6,984.1 |
|
|
7,059.0 |
|
|
7,122.7 |
|
|
7,230.6 |
|
Add off-balance sheet
assets: |
|
|
|
|
|
|
|
|
|
|
Rail
North America |
|
423.9 |
|
|
488.1 |
|
|
471.3 |
|
|
435.7 |
|
|
411.7 |
|
ASC |
|
0.7 |
|
|
0.5 |
|
|
0.2 |
|
|
— |
|
|
— |
|
Total off-balance sheet
assets |
|
424.6 |
|
|
488.6 |
|
|
471.5 |
|
|
435.7 |
|
|
411.7 |
|
Total Assets, excluding
cash, as adjusted (non-GAAP) |
|
$ |
7,362.5 |
|
|
$ |
7,472.7 |
|
|
$ |
7,530.5 |
|
|
$ |
7,558.4 |
|
|
$ |
7,642.3 |
|
|
(*) We include total on- and off-balance sheet assets because
certain operating assets are accounted for as operating leases and
are not recorded on the balance sheet. We include these leased-in
assets in our calculation of total assets (as adjusted) because we
believe it gives investors a more comprehensive representation of
the magnitude of the assets we operate and that drive our financial
performance. In addition, this calculation of total assets (as
adjusted) provides consistency with other non-financial information
we disclose. We also provide information regarding our leverage
ratios, which are expressed as a ratio of debt (including
off-balance sheet debt) to equity. The off-balance sheet debt
amount in this calculation is the equivalent of the off-balance
sheet asset amount. We believe reporting this corresponding
off-balance sheet debt amount provides investors and other users of
our financial statements with a more comprehensive representation
of our debt obligations, leverage, and capital structure.
|
GATX CORPORATION AND
SUBSIDIARIESSUPPLEMENTAL INFORMATION
(UNAUDITED)(Continued) |
|
|
|
|
|
|
|
|
|
|
|
3/31/2017 |
|
6/30/2017 |
|
9/30/2017 |
|
12/31/2017 |
|
3/31/2018 |
Rail North
America Statistics |
|
|
|
|
|
|
|
|
|
Lease Price
Index (LPI) (1) |
|
|
|
|
|
|
|
|
|
Average renewal lease
rate change |
(32.6 |
)% |
|
(21.4 |
)% |
|
(27.0 |
)% |
|
(32.4 |
)% |
|
(11.6 |
)% |
Average renewal term
(months) |
29 |
|
|
32 |
|
|
35 |
|
|
36 |
|
|
34 |
|
Fleet
Rollforward (2) |
|
|
|
|
|
|
|
|
|
Beginning
balance |
104,522 |
|
|
103,672 |
|
|
104,007 |
|
|
103,692 |
|
|
103,730 |
|
Cars
added |
795 |
|
|
1,224 |
|
|
637 |
|
|
786 |
|
|
1,226 |
|
Cars
scrapped |
(806 |
) |
|
(640 |
) |
|
(854 |
) |
|
(600 |
) |
|
(673 |
) |
Cars
sold |
(839 |
) |
|
(249 |
) |
|
(98 |
) |
|
(148 |
) |
|
(1,686 |
) |
Ending
balance |
103,672 |
|
|
104,007 |
|
|
103,692 |
|
|
103,730 |
|
|
102,597 |
|
Utilization |
99.1 |
% |
|
98.8 |
% |
|
98.5 |
% |
|
98.2 |
% |
|
98.2 |
% |
Average active
railcars |
102,976 |
|
|
102,760 |
|
|
102,555 |
|
|
102,078 |
|
|
101,208 |
|
Boxcar
Fleet |
|
|
|
|
|
|
|
|
|
Ending balance |
17,415 |
|
|
17,138 |
|
|
16,555 |
|
|
16,398 |
|
|
16,227 |
|
Utilization |
92.9 |
% |
|
90.2 |
% |
|
92.4 |
% |
|
92.6 |
% |
|
93.5 |
% |
Rail Europe
Statistics |
|
|
|
|
|
|
|
|
|
Fleet
Rollforward |
|
|
|
|
|
|
|
|
|
Beginning
balance |
23,122 |
|
|
23,131 |
|
|
23,180 |
|
|
23,227 |
|
|
23,166 |
|
Cars
added |
207 |
|
|
288 |
|
|
179 |
|
|
197 |
|
|
63 |
|
Cars
scrapped/sold |
(198 |
) |
|
(239 |
) |
|
(132 |
) |
|
(258 |
) |
|
(225 |
) |
Ending
balance |
23,131 |
|
|
23,180 |
|
|
23,227 |
|
|
23,166 |
|
|
23,004 |
|
Utilization |
95.0 |
% |
|
95.7 |
% |
|
95.6 |
% |
|
96.8 |
% |
|
96.7 |
% |
Average active
railcars |
22,012 |
|
|
22,024 |
|
|
22,215 |
|
|
22,290 |
|
|
22,237 |
|
Rail North
America Industry Statistics |
|
|
|
|
|
|
|
|
|
Manufacturing Capacity
Utilization Index (3) |
75.8 |
% |
|
76.6 |
% |
|
76.1 |
% |
|
77.3 |
% |
|
78.0 |
% |
Year-over-year Change
in U.S. Carloadings (excl. intermodal) (4) |
5.7 |
% |
|
6.4 |
% |
|
3.8 |
% |
|
2.9 |
% |
|
(0.3 |
)% |
Year-over-year Change
in U.S. Carloadings (chemical) (4) |
(1.2 |
)% |
|
0.1 |
% |
|
0.2 |
% |
|
1.2 |
% |
|
3.1 |
% |
Year-over-year Change
in U.S. Carloadings (petroleum) (4) |
(13.2 |
)% |
|
(14.1 |
)% |
|
(14.8 |
)% |
|
(12.2 |
)% |
|
3.3 |
% |
Production Backlog at
Railcar Manufacturers (5) |
60,471 |
|
|
66,561 |
|
|
64,253 |
|
|
58,275 |
|
|
n/a |
(6) |
American
Steamship Company Statistics |
|
|
|
|
|
|
|
|
|
Total Net Tons Carried
(millions) |
1.0 |
|
|
8.5 |
|
|
9.8 |
|
|
8.5 |
|
|
0.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_________
(1) GATX’s Lease Price Index (LPI) is an
internally-generated business indicator that measures lease rate
pricing on renewals for our North American railcar fleet, excluding
boxcars. The index is calculated using the weighted average lease
rate for a group of railcar types that GATX believes best
represents its overall North American 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, weighted by fleet composition. The average
renewal lease term is reported in months and reflects the average
renewal lease term of railcar types in the LPI, weighted by fleet
composition.(2) Excludes boxcar fleet.(3) As reported and revised
by the Federal Reserve.(4) As reported by the Association of
American Railroads (AAR).(5) As reported by the Railway Supply
Institute (RSI).(6) Not available, not published as of the date of
this release.
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