- Fourth-quarter 2020 net income from continuing operations was
$17.8 million or$0.50 per diluted share - Full-year 2020 net income from continuing operations was
$150.2 million or$4.24 per diluted share - Rail North America’s fleet utilization remained high at 98.1%
- GATX commences program of direct investment in aircraft spare engines
Three Months Ended | Twelve Months Ended | ||||||||||||||
Per Diluted Share | 2020 | 2019 | 2020 | 2019 | |||||||||||
Income from Continuing Operations | $ | 0.50 | $ | 1.18 | $ | 4.24 | $ | 4.97 | |||||||
Income from Discontinued Operations | — | 0.41 | 0.03 | 0.84 | |||||||||||
Total | $ | 0.50 | $ | 1.59 | $ | 4.27 | $ | 5.81 | |||||||
2020 fourth-quarter net income from continuing operations was
The 2020 full-year results include a net negative impact of
In the second quarter of 2020, GATX completed the sale of
“Our 2020 results reflect excellent execution in the face of a challenging year,” said
“Despite the pandemic, demand for railcars remained stable in
“Our 2020 full-year investment volume was over
RAIL
At
Fleet utilization was 98.1% at the end of the fourth quarter, compared to 98.2% at the end of the prior quarter and 99.3% at 2019 year end. During the fourth quarter, the GATX Lease Price Index (LPI), a weighted-average lease renewal rate for a group of railcars representative of Rail North America’s fleet, was negative 22.6%. This compares to negative 29.4% in the prior quarter and negative 9.1% in the fourth quarter of 2019. The average lease renewal term for railcars included in the LPI during the fourth quarter was 34 months, compared to 29 months in the prior quarter and 37 months in the fourth quarter of 2019. The fourth-quarter renewal success rate was 77.0%, compared to 58.1% in the prior quarter and 84.0% in the fourth quarter of 2019.
For full-year 2020, the renewal lease rate change of the LPI was negative 23.5% and the average renewal term was 31 months, compared to negative 3.9% and 39 months in 2019. The renewal success rate for 2020 was 70.8%, compared to 82.2% in 2019. Total investment volume 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
At
Additional fleet statistics for GRE are provided on the last page of this press release.
PORTFOLIO MANAGEMENT
Portfolio Management reported segment loss of
DISCONTINUED OPERATIONS
In the second quarter of 2020, GATX completed the sale of
(Income per diluted share) | Three Months Ended | Twelve Months Ended | ||||||||||||||
Discontinued Operations | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Operations, net of taxes | $ | — | $ | 0.41 | $ | (0.06 | ) | $ | 0.84 | |||||||
Gain on sale of ASC, net of taxes | — | — | 0.09 | — | ||||||||||||
Total Discontinued Operations | $ | — | $ | 0.41 | $ | 0.03 | $ | 0.84 | ||||||||
COMPANY DESCRIPTION
TELECONFERENCE INFORMATION
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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 in our other filings with the
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FOR FURTHER INFORMATION CONTACT:
Director, Investor Relations
312-621-4285
shari.hellerman@gatx.com
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In millions, except per share data)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Revenues | |||||||||||||||||||
Lease revenue | 274.2 | $ | 271.7 | $ | 1,087.5 | $ | 1,088.5 | ||||||||||||
Marine operating revenue | 4.0 | 3.8 | 15.6 | 8.2 | |||||||||||||||
Other revenue | 26.7 | 25.0 | 106.1 | 105.4 | |||||||||||||||
Total Revenues | 304.9 | 300.5 | 1,209.2 | 1,202.1 | |||||||||||||||
Expenses | |||||||||||||||||||
Maintenance expense | 70.7 | 79.1 | 315.5 | 314.4 | |||||||||||||||
Marine operating expense | 8.8 | 6.9 | 19.7 | 18.9 | |||||||||||||||
Depreciation expense | 85.1 | 81.1 | 330.5 | 321.3 | |||||||||||||||
Operating lease expense | 11.2 | 13.3 | 49.3 | 54.4 | |||||||||||||||
Other operating expense | 9.3 | 7.8 | 35.3 | 31.3 | |||||||||||||||
Selling, general and administrative expense | 46.2 | 50.8 | 172.0 | 180.4 | |||||||||||||||
Total Expenses | 231.3 | 239.0 | 922.3 | 920.7 | |||||||||||||||
Other Income (Expense) | |||||||||||||||||||
Net (loss) gain on asset dispositions | (0.6 | ) | 4.7 | 41.7 | 51.6 | ||||||||||||||
Interest expense, net | (48.8 | ) | (45.2 | ) | (190.3 | ) | (180.5 | ) | |||||||||||
Other expense | (0.8 | ) | (2.0 | ) | (13.0 | ) | (7.3 | ) | |||||||||||
Income before Income Taxes and Share of Affiliates’ Earnings | 23.4 | 19.0 | 125.3 | 145.2 | |||||||||||||||
Income taxes | (7.7 | ) | (9.8 | ) | (37.3 | ) | (40.9 | ) | |||||||||||
Share of affiliates’ earnings, net of taxes | 2.1 | 32.9 | 62.2 | 76.5 | |||||||||||||||
Net Income from Continuing Operations | $ | 17.8 | $ | 42.1 | $ | 150.2 | $ | 180.8 | |||||||||||
Discontinued Operations, Net of Taxes | |||||||||||||||||||
Net income (loss) from discontinued operations, net of taxes | $ | — | $ | 14.5 | $ | (2.2 | ) | $ | 30.4 | ||||||||||
Gain on sale of discontinued operations, net of taxes | — | — | 3.3 | — | |||||||||||||||
Total Discontinued Operations, Net of Taxes | $ | — | $ | 14.5 | $ | 1.1 | $ | 30.4 | |||||||||||
Net Income | $ | 17.8 | $ | 56.6 | $ | 151.3 | $ | 211.2 | |||||||||||
Share Data | |||||||||||||||||||
Basic earnings per share from continuing operations | $ | 0.51 | $ | 1.21 | $ | 4.30 | $ | 5.07 | |||||||||||
Basic earnings per share from discontinued operations | — | 0.41 | 0.03 | 0.85 | |||||||||||||||
Basic earnings per share from consolidated operations | $ | 0.51 | $ | 1.62 | $ | 4.33 | $ | 5.92 | |||||||||||
Average number of common shares | 35.0 | 34.9 | 35.0 | 35.7 | |||||||||||||||
Diluted earnings per share from continuing operations | $ | 0.50 | $ | 1.18 | $ | 4.24 | $ | 4.97 | |||||||||||
Diluted earnings per share from discontinued operations | — | 0.41 | 0.03 | 0.84 | |||||||||||||||
Diluted earnings per share from consolidated operations | $ | 0.50 | $ | 1.59 | $ | 4.27 | $ | 5.81 | |||||||||||
Average number of common shares and common share equivalents | 35.6 | 35.6 | 35.4 | 36.4 | |||||||||||||||
Dividends declared per common share | $ | 0.48 | $ | 0.46 | $ | 1.92 | $ | 1.84 | |||||||||||
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions)
2020 | 2019 | ||||||||
Assets | |||||||||
Cash and Cash Equivalents | $ | 292.2 | $ | 151.0 | |||||
Restricted Cash | 0.4 | — | |||||||
Receivables | |||||||||
Rent and other receivables | 74.7 | 65.9 | |||||||
Finance leases (as lessor) | 74.0 | 90.3 | |||||||
Less: allowance for losses | (6.5 | ) | (6.2 | ) | |||||
142.2 | 150.0 | ||||||||
Operating Assets and Facilities | 10,484.0 | 9,523.5 | |||||||
Less: allowance for depreciation | (3,313.3 | ) | (3,066.2 | ) | |||||
7,170.7 | 6,457.3 | ||||||||
Lease Assets (as lessee) | |||||||||
Right-of-use assets, net of accumulated depreciation | 335.9 | 411.7 | |||||||
Finance leases, net of accumulated depreciation | 37.5 | 8.9 | |||||||
373.4 | 420.6 | ||||||||
Investments in Affiliated Companies | 584.7 | 512.6 | |||||||
143.7 | 81.5 | ||||||||
Other Assets | 230.3 | 221.0 | |||||||
Assets of Discontinued Operations | — | 291.1 | |||||||
Total Assets | $ | 8,937.6 | $ | 8,285.1 | |||||
Liabilities and Shareholders’ Equity | |||||||||
Accounts Payable and Accrued Expenses | 147.3 | $ | 119.4 | ||||||
Debt | |||||||||
Commercial paper and borrowings under bank credit facilities | 23.6 | 15.8 | |||||||
Recourse | 5,329.0 | 4,780.4 | |||||||
5,352.6 | 4,796.2 | ||||||||
Lease Obligations (as lessee) | |||||||||
Operating leases | 348.6 | 429.4 | |||||||
Finance leases | 33.3 | 7.9 | |||||||
381.9 | 437.3 | ||||||||
Deferred Income Taxes | 962.8 | 888.5 | |||||||
Other Liabilities | 135.6 | 139.1 | |||||||
Liabilities of Discontinued Operations | — | 69.5 | |||||||
Total Liabilities | 6,980.2 | 6,450.0 | |||||||
Total Shareholders’ Equity | 1,957.4 | 1,835.1 | |||||||
Total Liabilities and Shareholders’ Equity | $ | 8,937.6 | $ | 8,285.1 | |||||
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended
(In millions)
Rail | Rail International | Portfolio Management | Other | GATX Consolidated | |||||||||||||||||||
Revenues | |||||||||||||||||||||||
Lease revenue | $ | 207.5 | $ | 66.5 | $ | 0.2 | $ | — | $ | 274.2 | |||||||||||||
Marine operating revenue | — | — | 4.0 | — | 4.0 | ||||||||||||||||||
Other revenue | 23.3 | 3.2 | 0.2 | — | 26.7 | ||||||||||||||||||
Total Revenues | 230.8 | 69.7 | 4.4 | — | 304.9 | ||||||||||||||||||
Expenses | |||||||||||||||||||||||
Maintenance expense | 58.2 | 12.5 | — | — | 70.7 | ||||||||||||||||||
Marine operating expense | — | — | 8.8 | — | 8.8 | ||||||||||||||||||
Depreciation expense | 65.6 | 18.2 | 1.3 | — | 85.1 | ||||||||||||||||||
Operating lease expense | 11.2 | — | — | — | 11.2 | ||||||||||||||||||
Other operating expense | 6.5 | 2.6 | 0.2 | — | 9.3 | ||||||||||||||||||
Total Expenses | 141.5 | 33.3 | 10.3 | — | 185.1 | ||||||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||
Net (loss) gain on asset dispositions | (1.6 | ) | 0.4 | 0.6 | — | (0.6 | ) | ||||||||||||||||
Interest (expense) income, net | (36.4 | ) | (11.9 | ) | (3.1 | ) | 2.6 | (48.8 | ) | ||||||||||||||
Other (expense) income | (1.7 | ) | 0.7 | — | 0.2 | (0.8 | ) | ||||||||||||||||
Share of affiliates' pre-tax (loss) income | (0.1 | ) | — | 2.7 | — | 2.6 | |||||||||||||||||
Segment profit (loss) | $ | 49.5 | $ | 25.6 | $ | (5.7 | ) | $ | 2.8 | $ | 72.2 | ||||||||||||
Less: | |||||||||||||||||||||||
Selling, general and administrative expense | 46.2 | ||||||||||||||||||||||
Income taxes (includes | 8.2 | ||||||||||||||||||||||
Net income from continuing operations | $ | 17.8 | |||||||||||||||||||||
Discontinued operations, net of taxes | |||||||||||||||||||||||
Net income from discontinuing operations, net of taxes | $ | — | |||||||||||||||||||||
Loss on sale of discontinued operations, net of taxes | — | ||||||||||||||||||||||
Total discontinued operations, net of taxes | $ | — | |||||||||||||||||||||
Net income | $ | 17.8 | |||||||||||||||||||||
Selected Data: | |||||||||||||||||||||||
Investment volume | $ | 167.4 | $ | 51.5 | $ | 0.2 | $ | 203.5 | $ | 422.6 | |||||||||||||
Net (Loss) Gain on Asset Dispositions | |||||||||||||||||||||||
Asset Remarketing Income: | |||||||||||||||||||||||
Net (loss) gains on disposition of owned assets | $ | (0.3 | ) | $ | 0.3 | $ | — | $ | — | $ | — | ||||||||||||
Residual sharing income | 0.1 | — | 0.6 | — | 0.7 | ||||||||||||||||||
Non-remarketing net gains (1) | (1.1 | ) | 0.1 | — | — | (1.0 | ) | ||||||||||||||||
Asset impairments | (0.3 | ) | — | — | — | (0.3 | ) | ||||||||||||||||
$ | (1.6 | ) | $ | 0.4 | $ | 0.6 | $ | — | $ | (0.6 | ) |
___________
(1) Includes net gains (losses) from scrapping of railcars.
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended
(In millions)
Rail | Rail International | Portfolio Management | Other | GATX Consolidated | ||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Lease revenue | $ | 214.0 | $ | 57.5 | $ | 0.2 | $ | — | $ | 271.7 | ||||||||||||||
Marine operating revenue | — | — | 3.8 | — | 3.8 | |||||||||||||||||||
Other revenue | 22.5 | 2.3 | 0.2 | — | 25.0 | |||||||||||||||||||
Total Revenues | 236.5 | 59.8 | 4.2 | — | 300.5 | |||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Maintenance expense | 68.1 | 11.0 | — | — | 79.1 | |||||||||||||||||||
Marine operating expense | — | — | 6.9 | — | 6.9 | |||||||||||||||||||
Depreciation expense | 64.3 | 15.1 | 1.7 | — | 81.1 | |||||||||||||||||||
Operating lease expense | 13.3 | — | — | — | 13.3 | |||||||||||||||||||
Other operating expense | 4.9 | 2.6 | 0.3 | — | 7.8 | |||||||||||||||||||
Total Expenses | 150.6 | 28.7 | 8.9 | — | 188.2 | |||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||
Net gain (loss) on asset dispositions | 10.0 | 0.5 | (5.8 | ) | — | 4.7 | ||||||||||||||||||
Interest (expense) income, net | (33.1 | ) | (10.4 | ) | (2.9 | ) | 1.2 | (45.2 | ) | |||||||||||||||
Other (expense) income | (1.7 | ) | 1.7 | — | (2.0 | ) | (2.0 | ) | ||||||||||||||||
Share of affiliates' pre-tax income | — | — | 40.9 | — | 40.9 | |||||||||||||||||||
Segment profit (loss) | $ | 61.1 | $ | 22.9 | $ | 27.5 | $ | (0.8 | ) | $ | 110.7 | |||||||||||||
Less: | ||||||||||||||||||||||||
Selling, general and administrative expense | 50.8 | |||||||||||||||||||||||
Income taxes (includes | 17.8 | |||||||||||||||||||||||
Net income from continuing operations | $ | 42.1 | ||||||||||||||||||||||
Discontinued operations, net of taxes | ||||||||||||||||||||||||
Net income from discontinued operations, net of taxes | $ | 14.5 | ||||||||||||||||||||||
Gain on sale of discontinued operations, net of taxes | — | |||||||||||||||||||||||
Total discontinued operations, net of taxes | $ | 14.5 | ||||||||||||||||||||||
Net income | $ | 56.6 | ||||||||||||||||||||||
Selected Data: | ||||||||||||||||||||||||
Investment volume | $ | 159.8 | $ | 57.1 | $ | — | $ | 2.1 | $ | 219.0 | ||||||||||||||
Asset Remarketing Income: | ||||||||||||||||||||||||
Net gains on disposition of owned assets | $ | 17.6 | $ | 0.1 | $ | — | $ | — | $ | 17.7 | ||||||||||||||
Residual sharing income | 0.1 | — | 0.4 | — | 0.5 | |||||||||||||||||||
Non-remarketing net (losses) gains (1) | (7.3 | ) | 0.4 | — | — | (6.9 | ) | |||||||||||||||||
Asset impairments | (0.4 | ) | — | (6.2 | ) | — | (6.6 | ) | ||||||||||||||||
$ | 10.0 | $ | 0.5 | $ | (5.8 | ) | $ | — | $ | 4.7 |
__________
(1) Includes net gains (losses) from scrapping of railcars.
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Twelve Months Ended
(In millions)
Rail | Rail International | Portfolio Management | Other | GATX Consolidated | ||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Lease revenue | $ | 838.3 | $ | 248.4 | $ | 0.8 | $ | — | $ | 1,087.5 | ||||||||||||||
Marine operating revenue | — | — | 15.6 | — | 15.6 | |||||||||||||||||||
Other revenue | 95.8 | 9.7 | 0.6 | — | 106.1 | |||||||||||||||||||
Total Revenues | 934.1 | 258.1 | 17.0 | — | 1,209.2 | |||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Maintenance expense | 264.7 | 50.8 | — | — | 315.5 | |||||||||||||||||||
Marine operating expense | — | — | 19.7 | — | 19.7 | |||||||||||||||||||
Depreciation expense | 258.6 | 66.6 | 5.3 | — | 330.5 | |||||||||||||||||||
Operating lease expense | 49.3 | — | — | — | 49.3 | |||||||||||||||||||
Other operating expense | 27.3 | 7.5 | 0.5 | — | 35.3 | |||||||||||||||||||
Total Expenses | 599.9 | 124.9 | 25.5 | — | 750.3 | |||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||
Net gain on asset dispositions | 38.3 | 1.2 | 2.2 | — | 41.7 | |||||||||||||||||||
Interest (expense) income, net | (139.9 | ) | (45.9 | ) | (12.2 | ) | 7.7 | (190.3 | ) | |||||||||||||||
Other expense | (4.9 | ) | (5.0 | ) | — | (3.1 | ) | (13.0 | ) | |||||||||||||||
Share of affiliates' pre-tax (loss) income | (0.1 | ) | — | 95.9 | — | 95.8 | ||||||||||||||||||
Segment profit | $ | 227.6 | $ | 83.5 | $ | 77.4 | $ | 4.6 | $ | 393.1 | ||||||||||||||
Less: | ||||||||||||||||||||||||
Selling, general and administrative expense | 172.0 | |||||||||||||||||||||||
Income taxes (includes | 70.9 | |||||||||||||||||||||||
Net income from continuing operations | $ | 150.2 | ||||||||||||||||||||||
Discontinued operations, net of taxes | ||||||||||||||||||||||||
Net loss from discontinued operations, net of taxes | $ | (2.2 | ) | |||||||||||||||||||||
Gain on sale of discontinued operations, net of taxes | 3.3 | |||||||||||||||||||||||
Total discontinued operations, net of taxes | $ | 1.1 | ||||||||||||||||||||||
Net income | $ | 151.3 | ||||||||||||||||||||||
Selected Data: | ||||||||||||||||||||||||
Investment volume | $ | 642.0 | $ | 216.0 | $ | 0.5 | $ | 205.5 | $ | 1,064.0 | ||||||||||||||
Asset Remarketing Income: | ||||||||||||||||||||||||
Net gains on disposition of owned assets | $ | 38.8 | $ | 0.5 | $ | 0.1 | $ | — | $ | 39.4 | ||||||||||||||
Residual sharing income | 0.4 | — | 2.1 | — | 2.5 | |||||||||||||||||||
Non-remarketing net losses (gains) (1) | (0.6 | ) | 0.7 | — | — | 0.1 | ||||||||||||||||||
Asset impairments | (0.3 | ) | — | — | — | (0.3 | ) | |||||||||||||||||
$ | 38.3 | $ | 1.2 | $ | 2.2 | $ | — | $ | 41.7 |
__________
(1) Includes net gains (losses) from scrapping of railcars.
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Twelve Months Ended
(In millions)
Rail | Rail International | Portfolio Management | Other | GATX Consolidated | ||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Lease revenue | $ | 868.3 | $ | 219.2 | $ | 1.0 | $ | — | $ | 1,088.5 | ||||||||||||||
Marine operating revenue | — | — | 8.2 | — | 8.2 | |||||||||||||||||||
Other revenue | 96.2 | 8.5 | 0.7 | — | 105.4 | |||||||||||||||||||
Total Revenues | 964.5 | 227.7 | 9.9 | — | 1,202.1 | |||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Maintenance expense | 267.9 | 46.5 | — | — | 314.4 | |||||||||||||||||||
Marine operating expense | — | — | 18.9 | — | 18.9 | |||||||||||||||||||
Depreciation expense | 256.9 | 57.8 | 6.6 | — | 321.3 | |||||||||||||||||||
Operating lease expense | 54.4 | — | — | — | 54.4 | |||||||||||||||||||
Other operating expense | 23.9 | 6.8 | 0.6 | — | 31.3 | |||||||||||||||||||
Total Expenses | 603.1 | 111.1 | 26.1 | — | 740.3 | |||||||||||||||||||
Other Income (Expense) | ||||||||||||||||||||||||
Net gain (loss) on asset dispositions | 54.6 | 1.7 | (4.7 | ) | — | 51.6 | ||||||||||||||||||
Interest (expense) income, net | (134.5 | ) | (40.6 | ) | (11.2 | ) | 5.8 | (180.5 | ) | |||||||||||||||
Other (expense) income | (5.3 | ) | 1.2 | — | (3.2 | ) | (7.3 | ) | ||||||||||||||||
Share of affiliates' pre-tax income | — | — | 94.5 | — | 94.5 | |||||||||||||||||||
Segment profit | $ | 276.2 | $ | 78.9 | $ | 62.4 | $ | 2.6 | $ | 420.1 | ||||||||||||||
Less: | ||||||||||||||||||||||||
Selling, general and administrative expense | 180.4 | |||||||||||||||||||||||
Income taxes (includes | 58.9 | |||||||||||||||||||||||
Net income from continuing operations | $ | 180.8 | ||||||||||||||||||||||
Discontinued operations, net of taxes | ||||||||||||||||||||||||
Net income from discontinued operations, net of taxes | $ | 30.4 | ||||||||||||||||||||||
Gain on sale of discontinued operations, net of taxes | — | |||||||||||||||||||||||
Total discontinued operations, net of taxes | $ | 30.4 | ||||||||||||||||||||||
Net income | $ | 211.2 | ||||||||||||||||||||||
Selected Data: | ||||||||||||||||||||||||
Investment volume | $ | 502.2 | $ | 215.7 | $ | — | $ | 4.9 | $ | 722.8 | ||||||||||||||
Asset Remarketing Income: | ||||||||||||||||||||||||
Net gains on disposition of owned assets | $ | 58.5 | $ | 0.1 | $ | — | $ | — | $ | 58.6 | ||||||||||||||
Residual sharing income | 0.4 | — | 1.5 | — | 1.9 | |||||||||||||||||||
Non-remarketing net (losses) gains (1) | (3.9 | ) | 1.6 | — | — | (2.3 | ) | |||||||||||||||||
Asset impairments | (0.4 | ) | — | (6.2 | ) | — | (6.6 | ) | ||||||||||||||||
$ | 54.6 | $ | 1.7 | $ | (4.7 | ) | $ | — | $ | 51.6 |
__________
(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*
Three Months Ended | Twelve Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income (GAAP) | $ | 17.8 | $ | 56.6 | $ | 151.3 | $ | 211.2 | ||||||||
Less: Net income from discontinued operations (GAAP) | — | 14.5 | 1.1 | 30.4 | ||||||||||||
Net income from continuing operations (GAAP) | $ | 17.8 | $ | 42.1 | $ | 150.2 | $ | 180.8 | ||||||||
Other income tax adjustments attributable to income from continuing operations: | ||||||||||||||||
Income tax rate change enacted in | — | — | — | (2.8 | ) | |||||||||||
Adjustments attributable to affiliates' earnings, net of taxes: | ||||||||||||||||
Income tax rate change enacted in the | — | — | 12.3 | — | ||||||||||||
Net income from continuing operations, excluding tax adjustments and other items (non-GAAP) | $ | 17.8 | $ | 42.1 | $ | 162.5 | $ | 178.0 | ||||||||
Net income from discontinued operations, excluding tax adjustments and other items (non-GAAP) | $ | — | $ | 6.4 | $ | 1.1 | $ | 22.3 | ||||||||
Net income from consolidated operations, excluding tax adjustments and other items (non-GAAP) | $ | 17.8 | $ | 48.5 | $ | 163.6 | $ | 200.3 | ||||||||
Impact of Tax Adjustments and Other Items on Diluted Earnings per Share*
Three Months Ended | Twelve Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Diluted earnings per share from continuing operations (GAAP) | 0.50 | $ | 1.18 | $ | 4.24 | $ | 4.97 | |||||||||
Diluted earnings per share from discontinued operations (GAAP) | $ | — | 0.41 | 0.03 | 0.84 | |||||||||||
Diluted earnings per share from consolidated operations (GAAP) | $ | 0.50 | $ | 1.59 | $ | 4.27 | $ | 5.81 | ||||||||
Diluted earnings per share from continuing operations, excluding tax adjustments and other items (non-GAAP) | $ | 0.50 | $ | 1.18 | $ | 4.59 | $ | 4.89 | ||||||||
Diluted earnings per share from discontinued operations, excluding tax adjustments and other items (non-GAAP) | $ | — | $ | 0.18 | $ | 0.03 | $ | 0.62 | ||||||||
Diluted earnings per share from consolidated operations, excluding tax adjustments and other items (non-GAAP) | $ | 0.50 | $ | 1.36 | $ | 4.62 | $ | 5.51 | ||||||||
Impact of Tax Adjustments and Other Items on Return on Equity*
Twelve Months Ended | |||||
2020 | 2019 | ||||
Return on Equity (GAAP) | 8.0 | % | 11.7 | % | |
Return on Equity, excluding tax adjustments and other items (non-GAAP) (1) | 10.5 | % | 13.5 | % |
_________
(1) Shareholders' equity used in this calculation excludes the impact of the Tax Act.
(*) 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, diluted earnings per share, and return on equity 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.
GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(In millions, except leverage)
Total Assets, Excluding Cash, by Segment | |||||||||||||||||||||||||
$ | 5,887.5 | $ | 5,801.5 | $ | 5,700.2 | $ | 5,634.6 | $ | 5,632.4 | ||||||||||||||||
1,805.2 | 1,615.0 | 1,534.2 | 1,447.7 | 1,462.8 | |||||||||||||||||||||
Portfolio Management | 700.5 | 707.6 | 675.1 | 656.5 | 637.0 | ||||||||||||||||||||
Other | 251.8 | 106.4 | 110.3 | 107.6 | 110.8 | ||||||||||||||||||||
Discontinued Operations | — | — | — | 300.8 | 291.1 | ||||||||||||||||||||
Total Assets, excluding cash | $ | 8,645.0 | $ | 8,230.5 | $ | 8,019.8 | $ | 8,147.2 | $ | 8,134.1 | |||||||||||||||
Debt and Lease Obligations, Net of Unrestricted Cash | |||||||||||||||||||||||||
Unrestricted cash | $ | (292.2 | ) | $ | (459.8 | ) | $ | (492.9 | ) | $ | (570.7 | ) | $ | (151.0 | ) | ||||||||||
Commercial paper and bank credit facilities | 23.6 | 13.5 | 5.9 | 275.5 | 15.8 | ||||||||||||||||||||
Recourse debt | 5,329.0 | 5,183.0 | 5,047.5 | 5,043.7 | 4,780.4 | ||||||||||||||||||||
Operating lease obligations | 348.6 | 368.0 | 372.3 | 399.3 | 432.3 | ||||||||||||||||||||
Finance lease obligations | 33.3 | — | 31.8 | — | 7.9 | ||||||||||||||||||||
Total debt and lease obligations, net of unrestricted cash | 5,442.3 | 5,104.7 | 4,964.6 | 5,147.8 | 5,085.4 | ||||||||||||||||||||
Shareholders’ Equity | $ | 1,957.4 | $ | 1,930.0 | $ | 1,875.3 | $ | 1,831.0 | $ | 1,835.1 | |||||||||||||||
Recourse Leverage (1) | 2.8 | 2.6 | 2.6 | 2.8 | 2.8 |
_________
(1) Calculated as total recourse debt / shareholder's equity.
Reconciliation of Total Assets to Total Assets, Excluding Cash | |||||||||||||||||||||||||
Total Assets | $ | 8,937.6 | $ | 8,690.3 | $ | 8,512.7 | $ | 8,717.9 | $ | 8,285.1 | |||||||||||||||
Less: cash | (292.6 | ) | (459.8 | ) | (492.9 | ) | (570.7 | ) | (151.0 | ) | |||||||||||||||
Total Assets, excluding cash | $ | 8,645.0 | $ | 8,230.5 | $ | 8,019.8 | $ | 8,147.2 | $ | 8,134.1 | |||||||||||||||
GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(Continued)
Rail North America Statistics | ||||||||||||||
Lease Price Index (LPI) (1) | ||||||||||||||
Average renewal lease rate change | (22.6 | )% | (29.4 | )% | (28.0 | )% | (11.6 | )% | (9.1 | )% | ||||
Average renewal term (months) | 34 | 29 | 31 | 31 | 37 | |||||||||
Fleet Rollforward (2) | ||||||||||||||
Beginning balance | 103,363 | 102,891 | 102,558 | 102,845 | 103,255 | |||||||||
Cars added | 1,015 | 1,578 | 1,220 | 883 | 965 | |||||||||
Cars scrapped | (571 | ) | (623 | ) | (570 | ) | (389 | ) | (620 | ) | ||||
Cars sold | (62 | ) | (483 | ) | (317 | ) | (781 | ) | (755 | ) | ||||
Ending balance | 103,745 | 103,363 | 102,891 | 102,558 | 102,845 | |||||||||
Utilization | 98.1 | % | 98.2 | % | 98.7 | % | 99.0 | % | 99.3 | % | ||||
Average active railcars | 101,723 | 101,552 | 101,600 | 101,668 | 102,309 | |||||||||
Boxcar Fleet | ||||||||||||||
Ending balance | 14,315 | 14,753 | 14,936 | 15,026 | 15,264 | |||||||||
Utilization | 95.8 | % | 94.5 | % | 94.6 | % | 94.6 | % | 95.0 | % | ||||
Rail Europe Statistics | ||||||||||||||
Fleet Rollforward | ||||||||||||||
Beginning balance | 25,956 | 25,705 | 25,352 | 24,561 | 24,211 | |||||||||
Cars added | 446 | 331 | 423 | 871 | 416 | |||||||||
Cars scrapped/sold | (59 | ) | (80 | ) | (70 | ) | (80 | ) | (66 | ) | ||||
Ending balance | 26,343 | 25,956 | 25,705 | 25,352 | 24,561 | |||||||||
Utilization | 98.1 | % | 98.2 | % | 98.4 | % | 98.5 | % | 99.3 | % | ||||
Average active railcars | 25,669 | 25,369 | 25,100 | 24,622 | 24,216 | |||||||||
Rail North America Industry Statistics | ||||||||||||||
Manufacturing Capacity Utilization Index (3) | 74.5 | % | 72.3 | % | 68.7 | % | 73.5 | % | 77.1 | % | ||||
Year-over-year Change in | (12.9 | )% | (15.3 | )% | (15.9 | )% | (6.3 | )% | (4.9 | )% | ||||
Year-over-year Change in | (3.4 | )% | (5.1 | )% | (5.0 | )% | 3.1 | % | (0.6 | )% | ||||
Year-over-year Change in | (14.0 | )% | (12.5 | )% | (11.1 | )% | 3.6 | % | 12.2 | % | ||||
Production Backlog at Railcar Manufacturers (5) | 34,598 | 37,417 | 39,612 | 46,330 | 51,295 | |||||||||
American Steamship Company Statistics | ||||||||||||||
Total Net Tons Carried (millions) (6) | — | — | 2.7 | 1.0 | 7.5 |
_________
(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. GATX calculates the index 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
(4) As reported by the
(5) As reported by the
(6) Total net tons carried for the second quarter of 2020 reflects volume through
Source:
2021 GlobeNewswire, Inc., source