GATX Corporation (NYSE:GATX) today reported 2017 first quarter net
income of $57.5 million or $1.44 per diluted share, compared to net
income of $69.3 million or $1.66 per diluted share in the first
quarter of 2016. The first-quarter 2016 results included a net gain
of approximately $1.5 million, or $0.04 per diluted share,
associated with the planned exit of the majority of Portfolio
Management’s marine investments. Details related to the exit of
Portfolio Management’s marine investments are provided in the
attached Supplemental Information.
Brian A. Kenney, president and chief executive
officer of GATX, stated, “For the second consecutive quarter, North
American car loadings increased and railroad velocity decreased on
a year over year basis. However, continued railcar oversupply, a
large railcar manufacturing backlog, and low fleet utilization
among certain competitors combined to prevent general lease rate
improvement in the first quarter.
“Consequently, while GATX’s fleet utilization
increased to 99.1% in the quarter, the renewal lease rate change of
GATX’s Lease Price Index decreased by 32.6%, with an average
renewal term of 29 months. Our renewal success rate was excellent
at 72.4%. Our commercial team effectively deployed railcars and
displaced competitors’ railcars despite the idle capacity in the
industry.
“Rail International continues to produce solid
operating results. GATX Rail Europe maintained high fleet
utilization of 95.0% despite railcar oversupply in the petroleum
market. We continue to upgrade customers’ fleets with new railcars,
while successfully assigning displaced, older cars to new
customers. American Steamship Company’s sailing season began at the
end of March, and ten vessels are currently scheduled to operate in
2017. The Rolls-Royce and Partners Finance affiliates continue to
perform very well. Demand for spare aircraft engines remains solid
across the fleet, and 2017 investment prospects are positive.”
Mr. Kenney concluded, “The year is progressing
as we expected, and therefore at this time our 2017 full-year
earnings estimate is unchanged at $4.40 - $4.60 per diluted
share.”
RAIL NORTH AMERICARail North
America reported segment profit of $93.0 million in the first
quarter of 2017, compared to $108.7 million in the first quarter of
2016. Higher gains on asset dispositions in the first quarter of
2017 were more than offset by lower lease revenue and higher
maintenance expense, resulting in lower segment profit in 2017.
At March 31, 2017, Rail North America’s wholly
owned fleet comprised approximately 121,000 railcars, including
approximately 17,400 boxcars. The following fleet statistics and
performance discussion exclude the boxcar fleet.
Fleet utilization was 99.1% at the end of the
first quarter, compared to 98.9% at the end of the prior quarter
and 98.9% at the end of the first quarter of 2016. During the first
quarter of 2017, the GATX Lease Price Index (LPI), a
weighted-average lease renewal rate for a group of railcars
representative of Rail North America’s fleet, decreased 32.6% over
the weighted-average expiring lease rate. This compares to a 36.2%
decrease in the prior quarter and a 6.4% increase in the first
quarter of 2016. The average lease renewal term for cars included
in the LPI during the first quarter was 29 months, compared to 29
months in the prior quarter and 34 months in the first quarter of
2016. Rail North America’s investment volume during the first
quarter was approximately $103 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 $13.4 million in the first
quarter of 2017, compared to $12.6 million in the first quarter of
2016. The improvement in segment profit was primarily driven by
lower maintenance expenses, including fewer wheelset
replacements.
At March 31, 2017, GATX Rail Europe’s (GRE)
fleet consisted of approximately 23,100 cars and utilization was
95.0%, compared to 95.6% at the end of the prior quarter and 95.1%
at the end of the first quarter of 2016. Additional fleet
statistics for GRE are provided on the last page of this press
release.
AMERICAN STEAMSHIP
COMPANYAmerican Steamship Company (ASC) reported a segment
loss of $0.2 million in the first quarter of 2017, compared to a
segment profit of $0.9 million in the first quarter of 2016. 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 $14.7 million in the first
quarter of 2017, compared to $18.6 million in the first quarter of
2016. First quarter 2016 segment profit included a gain of
approximately $2.4 million associated with the planned exit of the
majority of the marine investments. The operating environment at
Rolls-Royce and Partners Finance affiliates is positive with
modestly higher affiliate income in 2017.
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 more than 118
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 INFORMATION
GATX Corporation will host a teleconference to
discuss its 2017 first-quarter results. Call details are as
follows:
Thursday, April 20th11:00 A.M.
Eastern TimeDomestic Dial-In:
1-888-417-2254International Dial-In: 1-719-457-2605Replay:
1-888-203-1112 or 1-719-457-0820/Access Code: 8092911
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 statements 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, 2016 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 • weak economic conditions and other factors that may
decrease demand for our assets and services • decreased demand for
portions of our railcar fleet due to adverse changes in the price
of, or demand for, commodities that are shipped in our railcars •
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 (collectively the “RRPF affiliates”) • fluctuations in
foreign exchange rates |
|
• failure
to successfully negotiate collective bargaining agreements with the
unions representing a substantial portion of our employees •
improvements in railroad efficiency that could decrease demand for
railcars • the impact of regulatory requirements applicable to tank
cars carrying crude, ethanol, and other flammable liquids • 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 |
Investor, corporate, financial, historical
financial, and news release information may be found at
www.gatx.com.
--Tabular Follow
GATX CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED) |
(In millions, except per share
data) |
|
|
|
|
|
Three Months Ended March
31 |
|
|
|
|
2017 |
|
2016 |
Revenues |
|
|
|
|
Lease revenue |
|
$ |
272.7 |
|
|
$ |
284.5 |
|
Marine operating
revenue |
|
17.0 |
|
|
20.3 |
|
Other revenue |
|
26.4 |
|
|
29.6 |
|
Total
Revenues |
|
316.1 |
|
|
334.4 |
|
Expenses |
|
|
|
|
Maintenance
expense |
|
77.9 |
|
|
78.5 |
|
Marine operating
expense |
|
12.9 |
|
|
12.3 |
|
Depreciation
expense |
|
72.0 |
|
|
69.3 |
|
Operating lease
expense |
|
15.8 |
|
|
16.8 |
|
Other operating
expense |
|
9.6 |
|
|
8.8 |
|
Selling, general and
administrative expense |
|
42.9 |
|
|
38.8 |
|
Total
Expenses |
|
231.1 |
|
|
224.5 |
|
Other Income
(Expense) |
|
|
|
|
Net gain on asset
dispositions |
|
24.9 |
|
|
23.2 |
|
Interest expense,
net |
|
(39.2 |
) |
|
(37.2 |
) |
Other expense |
|
(1.3 |
) |
|
(3.3 |
) |
Income before
Income Taxes and Share of Affiliates’ Earnings |
|
69.4 |
|
|
92.6 |
|
Income
Taxes |
|
(20.6 |
) |
|
(30.8 |
) |
Share of
Affiliates’ Earnings (net of tax) |
|
8.7 |
|
|
7.5 |
|
Net
Income |
|
$ |
57.5 |
|
|
$ |
69.3 |
|
|
|
|
|
|
Share
Data |
|
|
|
|
Basic earnings per
share |
|
$ |
1.46 |
|
|
$ |
1.67 |
|
Average number of
common shares |
|
39.4 |
|
|
41.4 |
|
Diluted earnings per
share |
|
$ |
1.44 |
|
|
$ |
1.66 |
|
Average number of
common shares and common share equivalents |
|
39.9 |
|
|
41.8 |
|
Dividends declared per
common share |
|
$ |
0.42 |
|
|
$ |
0.40 |
|
GATX CORPORATION AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS
(UNAUDITED) |
(In millions) |
|
|
|
|
March 31 |
|
December 31 |
|
|
|
2017 |
|
2016 |
Assets |
|
|
|
|
|
Cash and Cash
Equivalents |
|
|
$ |
155.2 |
|
|
$ |
307.5 |
|
Restricted
Cash |
|
|
3.8 |
|
|
3.6 |
|
Receivables |
|
|
|
|
|
Rent and other
receivables |
|
|
67.0 |
|
|
85.9 |
|
Finance leases |
|
|
144.5 |
|
|
147.7 |
|
Less: allowance for
losses |
|
|
(5.7 |
) |
|
(6.1 |
) |
|
|
|
205.8 |
|
|
227.5 |
|
|
|
|
|
|
|
Operating
Assets and Facilities |
|
|
8,631.1 |
|
|
8,446.4 |
|
Less: allowance for
depreciation |
|
|
(2,666.1 |
) |
|
(2,641.7 |
) |
|
|
|
5,965.0 |
|
|
5,804.7 |
|
|
|
|
|
|
|
Investments in
Affiliated Companies |
|
|
396.9 |
|
|
387.0 |
|
Goodwill |
|
|
78.7 |
|
|
78.0 |
|
Other
Assets |
|
|
291.5 |
|
|
297.1 |
|
Total
Assets |
|
|
$ |
7,096.9 |
|
|
$ |
7,105.4 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
Accounts
Payable and Accrued Expenses |
|
|
$ |
143.3 |
|
|
$ |
174.8 |
|
Debt |
|
|
|
|
|
Commercial paper and
borrowings under bank credit facilities |
|
|
3.0 |
|
|
3.8 |
|
Recourse |
|
|
4,250.9 |
|
|
4,253.2 |
|
Capital lease
obligations |
|
|
13.5 |
|
|
14.9 |
|
|
|
|
4,267.4 |
|
|
4,271.9 |
|
|
|
|
|
|
|
Deferred Income
Taxes |
|
|
1,110.4 |
|
|
1,089.4 |
|
Other
Liabilities |
|
|
190.6 |
|
|
222.1 |
|
Total
Liabilities |
|
|
5,711.7 |
|
|
5,758.2 |
|
Total
Shareholders’ Equity |
|
|
1,385.2 |
|
|
1,347.2 |
|
Total
Liabilities and Shareholders’ Equity |
|
|
$ |
7,096.9 |
|
|
$ |
7,105.4 |
|
GATX CORPORATION AND
SUBSIDIARIES |
SEGMENT 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 |
|
|
(0.1 |
) |
|
(1.3 |
) |
Share of affiliates’
earnings (pretax) |
|
0.1 |
|
|
— |
|
|
— |
|
|
11.6 |
|
|
— |
|
|
11.7 |
|
Segment Profit
(Loss) |
|
$ |
93.0 |
|
|
$ |
13.4 |
|
|
$ |
(0.2 |
) |
|
$ |
14.7 |
|
|
$ |
3.1 |
|
|
$ |
124.0 |
|
Selling,
general and administrative expense |
42.9 |
|
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 impairment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total Net Gain
on Asset Dispositions |
|
$ |
23.8 |
|
|
$ |
0.8 |
|
|
$ |
— |
|
|
$ |
0.3 |
|
|
$ |
— |
|
|
$ |
24.9 |
|
(1) Includes scrapping gains.
GATX CORPORATION AND
SUBSIDIARIES |
SEGMENT DATA (UNAUDITED) |
Three Months Ended March 31,
2016 |
(In millions) |
|
|
|
Rail N.A. |
|
Rail Int’l |
|
ASC |
|
PortfolioManagement |
|
Other |
|
GATXConsolidated |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
236.6 |
|
|
$ |
44.9 |
|
|
$ |
1.0 |
|
|
$ |
2.0 |
|
|
$ |
— |
|
|
$ |
284.5 |
|
Marine operating
revenue |
|
— |
|
|
— |
|
|
4.1 |
|
|
16.2 |
|
|
— |
|
|
20.3 |
|
Other revenue |
|
27.8 |
|
|
1.6 |
|
|
— |
|
|
0.2 |
|
|
— |
|
|
29.6 |
|
Total
Revenues |
|
264.4 |
|
|
46.5 |
|
|
5.1 |
|
|
18.4 |
|
|
— |
|
|
334.4 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance
expense |
|
65.8 |
|
|
12.5 |
|
|
0.2 |
|
|
— |
|
|
— |
|
|
78.5 |
|
Marine operating
expense |
|
— |
|
|
— |
|
|
2.9 |
|
|
9.4 |
|
|
— |
|
|
12.3 |
|
Depreciation
expense |
|
56.5 |
|
|
11.1 |
|
|
— |
|
|
1.7 |
|
|
— |
|
|
69.3 |
|
Operating lease
expense |
|
16.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
16.8 |
|
Other operating
expense |
|
6.9 |
|
|
1.4 |
|
|
— |
|
|
0.5 |
|
|
— |
|
|
8.8 |
|
Total
Expenses |
|
146.0 |
|
|
25.0 |
|
|
3.1 |
|
|
11.6 |
|
|
— |
|
|
185.7 |
|
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
Net gain on asset
dispositions |
|
18.6 |
|
|
0.7 |
|
|
— |
|
|
3.9 |
|
|
— |
|
|
23.2 |
|
Interest (expense)
income, net |
|
(27.2 |
) |
|
(7.3 |
) |
|
(1.1 |
) |
|
(2.2 |
) |
|
0.6 |
|
|
(37.2 |
) |
Other (expense)
income |
|
(1.3 |
) |
|
(2.2 |
) |
|
— |
|
|
— |
|
|
0.2 |
|
|
(3.3 |
) |
Share of affiliates’
earnings (pretax) |
|
0.2 |
|
|
(0.1 |
) |
|
— |
|
|
10.1 |
|
|
— |
|
|
10.2 |
|
Segment
Profit |
|
$ |
108.7 |
|
|
$ |
12.6 |
|
|
$ |
0.9 |
|
|
$ |
18.6 |
|
|
$ |
0.8 |
|
|
$ |
141.6 |
|
Selling,
general and administrative expense |
38.8 |
|
Income
taxes (includes $2.7 related to affiliates’ earnings) |
33.5 |
|
Net Income |
$ |
69.3 |
|
Selected
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Volume |
|
$ |
112.9 |
|
|
$ |
22.0 |
|
|
$ |
4.7 |
|
|
$ |
— |
|
|
$ |
0.6 |
|
|
$ |
140.2 |
|
Net
Gain on Asset Dispositions |
|
|
|
|
|
|
|
|
Asset
Remarketing Income: |
|
|
|
|
|
|
|
|
|
|
|
|
Disposition gains on owned assets |
|
$ |
17.6 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2.4 |
|
|
$ |
— |
|
|
$ |
20.0 |
|
Residual
sharing income |
|
0.3 |
|
|
— |
|
|
— |
|
|
1.5 |
|
|
— |
|
|
1.8 |
|
Non-remarketing
disposition gains (1) |
|
0.7 |
|
|
0.7 |
|
|
— |
|
|
— |
|
|
— |
|
|
1.4 |
|
Asset impairment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total Net Gain
on Asset Dispositions |
|
$ |
18.6 |
|
|
$ |
0.7 |
|
|
$ |
— |
|
|
$ |
3.9 |
|
|
$ |
— |
|
|
$ |
23.2 |
|
(1) Includes scrapping gains.
GATX CORPORATION AND SUBSIDIARIES |
SUPPLEMENTAL INFORMATION
(UNAUDITED) |
(In millions, except per share
data) |
|
Impact of Tax Adjustments and Other Items on Net
Income* |
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31 |
|
|
2017 |
|
2016 |
Net income (GAAP) |
|
$ |
57.5 |
|
|
$ |
69.3 |
|
|
|
|
|
|
Adjustments
attributable to consolidated income, pretax: |
|
|
|
|
Net gain
on wholly owned Portfolio Management marine investments |
|
— |
|
|
(2.4 |
) |
Total adjustments
attributable to consolidated income, pretax |
|
$ |
— |
|
|
$ |
(2.4 |
) |
Income taxes thereon,
based on applicable effective tax rate |
|
$ |
— |
|
|
$ |
0.9 |
|
|
|
|
|
|
Net income, excluding
tax adjustments and other items (non-GAAP) |
|
$ |
57.5 |
|
|
$ |
67.8 |
|
|
|
|
|
|
|
|
|
|
Impact of Tax
Adjustments and Other Items on Diluted Earnings per
Share* |
|
|
|
|
|
|
|
|
|
|
Three Months EndedMarch 31 |
|
|
2017 |
|
2016 |
Diluted earnings per
share (GAAP) |
|
$ |
1.44 |
|
|
$ |
1.66 |
|
Diluted earnings per
share, excluding tax adjustments and other items (non-GAAP) |
|
$ |
1.44 |
|
|
$ |
1.62 |
|
(*) In addition to financial results reported in
accordance with GAAP, we provide certain non-GAAP financial
information. 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
this information 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.
GATX CORPORATION AND
SUBSIDIARIES |
SUPPLEMENTAL INFORMATION
(UNAUDITED) |
(In millions, except leverage) |
(Continued) |
|
|
|
3/31/2016 |
|
6/30/2016 |
|
9/30/2016 |
|
12/31/2016 |
|
3/31/2017 |
Assets by Segment, as adjusted (non-GAAP)* |
|
|
|
|
|
|
|
|
Rail North America |
|
$ |
5,173.3 |
|
|
$ |
5,235.7 |
|
|
$ |
5,243.0 |
|
|
$ |
5,216.5 |
|
|
$ |
5,269.4 |
|
Rail International |
|
1,150.9 |
|
|
1,127.2 |
|
|
1,153.0 |
|
|
1,084.8 |
|
|
1,116.0 |
|
ASC |
|
285.5 |
|
|
301.9 |
|
|
289.6 |
|
|
281.3 |
|
|
307.5 |
|
Portfolio
Management |
|
597.3 |
|
|
608.3 |
|
|
595.0 |
|
|
589.9 |
|
|
597.4 |
|
Other |
|
75.9 |
|
|
77.0 |
|
|
75.9 |
|
|
80.9 |
|
|
72.2 |
|
Total Assets, excluding
cash, as adjusted (non-GAAP) |
|
$ |
7,282.9 |
|
|
$ |
7,350.1 |
|
|
$ |
7,356.5 |
|
|
$ |
7,253.4 |
|
|
$ |
7,362.5 |
|
Debt, Net of
Unrestricted Cash* |
|
|
|
|
|
|
|
|
|
|
Unrestricted cash |
|
$ |
(216.2 |
) |
|
$ |
(177.6 |
) |
|
$ |
(211.5 |
) |
|
$ |
(307.5 |
) |
|
$ |
(155.2 |
) |
Commercial paper and
bank credit facilities |
|
17.9 |
|
|
28.5 |
|
|
5.1 |
|
|
3.8 |
|
|
3.0 |
|
Recourse debt |
|
4,304.3 |
|
|
4,298.8 |
|
|
4,204.4 |
|
|
4,253.2 |
|
|
4,250.9 |
|
Non-recourse debt |
|
4.7 |
|
|
2.3 |
|
|
— |
|
|
— |
|
|
— |
|
Capital lease
obligations |
|
16.9 |
|
|
16.6 |
|
|
15.1 |
|
|
14.9 |
|
|
13.5 |
|
Total debt, net of
unrestricted cash (GAAP) |
|
4,127.6 |
|
|
4,168.6 |
|
|
4,013.1 |
|
|
3,964.4 |
|
|
4,112.2 |
|
Off-balance sheet
recourse debt |
|
454.4 |
|
|
449.0 |
|
|
483.1 |
|
|
459.1 |
|
|
424.6 |
|
Total debt, net of
unrestricted cash, as adjusted (non-GAAP) |
|
$ |
4,582.0 |
|
|
$ |
4,617.6 |
|
|
$ |
4,496.2 |
|
|
$ |
4,423.5 |
|
|
$ |
4,536.8 |
|
Total Recourse Debt
(1) |
|
$ |
4,577.3 |
|
|
$ |
4,615.3 |
|
|
$ |
4,496.2 |
|
|
$ |
4,423.5 |
|
|
$ |
4,536.8 |
|
Shareholders’
Equity |
|
$ |
1,305.3 |
|
|
$ |
1,308.5 |
|
|
$ |
1,371.5 |
|
|
$ |
1,347.2 |
|
|
$ |
1,385.2 |
|
Recourse Leverage
(2) |
|
3.5 |
|
|
3.5 |
|
|
3.3 |
|
|
3.3 |
|
|
3.3 |
|
_________
(1) Includes on- and off-balance sheet
recourse debt; capital lease obligations; commercial paper and bank
credit facilities, net of unrestricted cash.(2)
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 |
|
|
$ |
7,062.0 |
|
|
$ |
7,090.6 |
|
|
$ |
7,089.3 |
|
|
$ |
7,105.4 |
|
|
$ |
7,096.9 |
|
Less:
cash |
|
|
(233.5 |
) |
|
(189.5 |
) |
|
(215.9 |
) |
|
(311.1 |
) |
|
(159.0 |
) |
Total Assets, excluding
cash (GAAP) |
|
|
6,828.5 |
|
|
6,901.1 |
|
|
6,873.4 |
|
|
6,794.3 |
|
|
6,937.9 |
|
Add off-balance sheet
assets: |
|
|
|
|
|
|
|
|
|
|
|
Rail
North America |
|
|
447.3 |
|
|
443.3 |
|
|
478.9 |
|
|
456.5 |
|
|
423.9 |
|
ASC |
|
|
7.1 |
|
|
5.7 |
|
|
4.2 |
|
|
2.6 |
|
|
0.7 |
|
Total off-balance sheet
assets |
|
|
454.4 |
|
|
449.0 |
|
|
483.1 |
|
|
459.1 |
|
|
424.6 |
|
Total Assets, excluding
cash, as adjusted (non-GAAP) |
|
|
$ |
7,282.9 |
|
|
$ |
7,350.1 |
|
|
$ |
7,356.5 |
|
|
$ |
7,253.4 |
|
|
$ |
7,362.5 |
|
(*) We disclose 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
SUBSIDIARIES |
SUPPLEMENTAL INFORMATION
(UNAUDITED) |
(Continued) |
|
|
|
3/31/2016 |
|
6/30/2016 |
|
9/30/2016 |
|
12/31/2016 |
|
3/31/2017 |
Rail North
America Statistics |
|
|
|
|
|
|
|
|
|
|
Lease Price
Index (LPI) (1) |
|
|
|
|
|
|
|
|
|
|
Average renewal lease
rate change |
|
6.4 |
% |
|
(25.4 |
)% |
|
(21.4 |
)% |
|
(36.2 |
)% |
|
(32.6 |
)% |
Average renewal term
(months) |
|
34 |
|
|
34 |
|
|
29 |
|
|
29 |
|
|
29 |
|
Fleet
Rollforward (2) |
|
|
|
|
|
|
|
|
|
|
Beginning
balance |
|
106,146 |
|
|
105,422 |
|
|
105,368 |
|
|
104,874 |
|
|
104,522 |
|
Cars
added |
|
811 |
|
|
857 |
|
|
764 |
|
|
1,087 |
|
|
795 |
|
Cars
scrapped |
|
(743 |
) |
|
(567 |
) |
|
(590 |
) |
|
(579 |
) |
|
(806 |
) |
Cars
sold |
|
(792 |
) |
|
(344 |
) |
|
(668 |
) |
|
(860 |
) |
|
(839 |
) |
Ending
balance |
|
105,422 |
|
|
105,368 |
|
|
104,874 |
|
|
104,522 |
|
|
103,672 |
|
Utilization |
|
98.9 |
% |
|
98.1 |
% |
|
99.0 |
% |
|
98.9 |
% |
|
99.1 |
% |
Average active
railcars |
|
104,505 |
|
|
103,824 |
|
|
103,479 |
|
|
103,702 |
|
|
102,976 |
|
Boxcar
Fleet |
|
|
|
|
|
|
|
|
|
|
Ending balance |
|
18,338 |
|
|
18,209 |
|
|
18,089 |
|
|
17,706 |
|
|
17,415 |
|
Utilization |
|
97.1 |
% |
|
97.1 |
% |
|
94.7 |
% |
|
93.8 |
% |
|
92.9 |
% |
Rail Europe
Statistics |
|
|
|
|
|
|
|
|
|
|
Fleet
Rollforward |
|
|
|
|
|
|
|
|
|
|
Beginning
balance |
|
22,923 |
|
|
22,859 |
|
|
23,088 |
|
|
22,966 |
|
|
23,122 |
|
Cars
added |
|
191 |
|
|
323 |
|
|
78 |
|
|
287 |
|
|
207 |
|
Cars
scrapped/sold |
|
(255 |
) |
|
(94 |
) |
|
(200 |
) |
|
(131 |
) |
|
(198 |
) |
Ending
balance |
|
22,859 |
|
|
23,088 |
|
|
22,966 |
|
|
23,122 |
|
|
23,131 |
|
Utilization |
|
95.1 |
% |
|
94.8 |
% |
|
95.0 |
% |
|
95.6 |
% |
|
95.0 |
% |
Average active
railcars |
|
21,854 |
|
|
21,747 |
|
|
21,830 |
|
|
22,002 |
|
|
22,012 |
|
Rail North
America Industry Statistics |
|
|
|
|
|
|
|
|
|
|
Manufacturing Capacity
Utilization Index (3) |
|
74.8 |
% |
|
75.4 |
% |
|
75.3 |
% |
|
76.0 |
% |
|
76.1 |
% |
Year-over-year Change
in U.S. Carloadings (excl. intermodal) (4) |
|
(13.8 |
)% |
|
(12.3 |
)% |
|
(10.5 |
)% |
|
(8.2 |
)% |
|
5.7 |
% |
Year-over-year Change
in U.S. Carloadings (chemical) (4) |
|
3.2 |
% |
|
2.4 |
% |
|
1.7 |
% |
|
1.5 |
% |
|
(1.2 |
)% |
Year-over-year Change
in U.S. Carloadings (petroleum) (4) |
|
(20.9 |
)% |
|
(21.7 |
)% |
|
(22.2 |
)% |
|
(21.4 |
)% |
|
(13.2 |
)% |
Production Backlog at
Railcar Manufacturers (5) |
|
95,038 |
|
|
89,155 |
|
|
77,640 |
|
|
66,681 |
|
|
n/a
(6 |
) |
American
Steamship Company Statistics |
|
|
|
|
|
|
|
|
|
|
Total Net Tons Carried
(millions) |
|
0.6 |
|
|
8.9 |
|
|
8.7 |
|
|
7.2 |
|
|
1.0 |
|
_________
(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.
FOR FURTHER INFORMATION CONTACT:
GATX Corporation
Christopher LaHurd
312-621-6228
christopher.lahurd@gatx.com
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