- Net income for the second quarter 2021 was
$5.5 million or$0.15 per diluted share - Results include a non-cash, net negative impact of
$39.7 million or$1.10 per diluted share related to an enacted tax rate increase in theUnited Kingdom - Company increases 2021 full-year earnings guidance to
$4.30-$4.50 per diluted share
Three Months Ended | Six Months Ended | ||||||||||||||
Per Diluted Share | 2021 | 2020 | 2021 | 2020 | |||||||||||
Income from Continuing Operations | $ | 0.15 | $ | 1.05 | $ | 1.17 | $ | 2.38 | |||||||
Income from Discontinued Operations | — | 0.06 | — | 0.04 | |||||||||||
Total | $ | 0.15 | $ | 1.11 | $ | 1.17 | $ | 2.42 |
2021 second-quarter net income from continuing operations was
Net income from discontinued operations in the second-quarter and year-to-date periods of 2021 was zero, compared to
"We continued to see improvement in
"As expected,
RAIL
At
Fleet utilization was 98.5% at the end of the second quarter, compared to 97.8% at the end of the prior quarter and 98.7% at the end of the second quarter of 2020. During the second quarter, the renewal lease rate change of the GATX Lease Price Index (LPI) was negative 6.7%. This compares to negative 18.1% in the prior quarter and negative 28.0% in the second quarter of 2020. The average lease renewal term for all cars included in the LPI during the second quarter was 29 months, compared to 30 months in the prior quarter and 31 months in the second quarter of 2020. Rail North America’s investment volume during the second quarter 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
PORTFOLIO MANAGEMENT
Portfolio Management reported segment profit of
DISCONTINUED OPERATIONS
In the second quarter of 2020, GATX completed the sale of
(Income per diluted share) | Three Months Ended | Six Months Ended | |||||||||||||
Discontinued Operations | 2021 | 2020 | 2021 | 2020 | |||||||||||
Operations, net of taxes | $ | — | $ | (0.04 | ) | $ | — | $ | (0.06 | ) | |||||
Gain on sale of ASC, net of taxes | — | 0.10 | — | 0.10 | |||||||||||
Total Discontinued Operations | $ | — | $ | 0.06 | $ | — | $ | 0.04 |
COMPANY DESCRIPTION
TELECONFERENCE INFORMATION
Domestic Dial-In: 1-800-367-2403
International Dial-In: 1-334-777-6978
Replay: 1-888-203-1112 or 1-719-457-0820 /Access Code: 9180679
Call-in details, a copy of this press release and real-time audio access are available at www.gatx.com. Please access the call 15 minutes prior to the start time. A replay will be available on the same site starting at
AVAILABILITY OF INFORMATION ON GATX'S WEBSITE
Investors and others should note that GATX routinely announces material information to investors and the marketplace using
FORWARD-LOOKING STATEMENTS
Statements in this Earnings Release not based on historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and, accordingly, involve known and unknown risks and uncertainties that are difficult to predict and could cause our actual results, performance, or achievements to differ materially from those discussed. These include statements as to our future expectations, beliefs, plans, strategies, objectives, events, conditions, financial performance, prospects, or future events. In some cases, forward-looking statements can be identified by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “outlook,” “continue,” “likely,” “will,” “would”, and similar words and phrases. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the date they are made, and are not guarantees of future performance. We do not undertake any obligation to publicly update or revise these forward-looking statements.
The following factors, in addition to those discussed in our other filings with the
|
|
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 | Six Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenues | |||||||||||||||
Lease revenue | $ | 287.6 | $ | 269.3 | $ | 568.2 | $ | 540.0 | |||||||
Marine operating revenue | 5.1 | 3.3 | 8.7 | 6.6 | |||||||||||
Other revenue | 24.4 | 27.9 | 46.0 | 53.3 | |||||||||||
Total Revenues | 317.1 | 300.5 | 622.9 | 599.9 | |||||||||||
Expenses | |||||||||||||||
Maintenance expense | 76.6 | 82.3 | 150.9 | 168.1 | |||||||||||
Marine operating expense | 5.5 | 3.2 | 10.1 | 7.3 | |||||||||||
Depreciation expense | 91.5 | 81.6 | 180.1 | 162.0 | |||||||||||
Operating lease expense | 10.2 | 12.5 | 21.1 | 25.8 | |||||||||||
Other operating expense | 11.4 | 9.2 | 21.6 | 17.7 | |||||||||||
Selling, general and administrative expense | 47.8 | 43.4 | 94.9 | 83.8 | |||||||||||
Total Expenses | 243.0 | 232.2 | 478.7 | 464.7 | |||||||||||
Other Income (Expense) | |||||||||||||||
Net gain on asset dispositions | 34.7 | 6.0 | 57.2 | 33.4 | |||||||||||
Interest expense, net | (50.0 | ) | (47.4 | ) | (103.6 | ) | (92.9 | ) | |||||||
Other expense | (8.1 | ) | (3.0 | ) | (9.4 | ) | (11.0 | ) | |||||||
Income before Income Taxes and Share of Affiliates’ Earnings | 50.7 | 23.9 | 88.4 | 64.7 | |||||||||||
Income taxes | (13.6 | ) | (4.7 | ) | (22.0 | ) | (17.8 | ) | |||||||
Share of affiliates’ earnings, net of taxes | (31.6 | ) | 17.8 | (24.4 | ) | 37.3 | |||||||||
Net Income from Continuing Operations | 5.5 | 37.0 | $ | 42.0 | $ | 84.2 | |||||||||
Discontinued Operations, Net of Taxes | |||||||||||||||
Net loss from discontinued operations, net of taxes | $ | — | $ | (1.3 | ) | $ | — | $ | (2.2 | ) | |||||
Gain on sale of discontinued operations, net of taxes | — | 3.6 | — | 3.6 | |||||||||||
Discontinued Operations, Net of Taxes | — | 2.3 | $ | — | $ | 1.4 | |||||||||
Net Income | $ | 5.5 | $ | 39.3 | $ | 42.0 | $ | 85.6 | |||||||
Share Data | |||||||||||||||
Basic earnings per share from continuing operations | $ | 0.16 | $ | 1.06 | $ | 1.19 | $ | 2.41 | |||||||
Basic earnings per share from discontinued operations | — | 0.06 | — | 0.04 | |||||||||||
Basic earnings per share from consolidated operations | $ | 0.16 | $ | 1.12 | $ | 1.19 | $ | 2.45 | |||||||
Average number of common shares | 35.4 | 34.9 | 35.3 | 34.9 | |||||||||||
Diluted earnings per share from continuing operations | $ | 0.15 | $ | 1.05 | $ | 1.17 | $ | 2.38 | |||||||
Diluted earnings per share from discontinued operations | — | 0.06 | — | 0.04 | |||||||||||
Diluted earnings per share from consolidated operations | $ | 0.15 | $ | 1.11 | $ | 1.17 | $ | 2.42 | |||||||
Average number of common shares and common share equivalents | 36.0 | 35.4 | 35.9 | 35.4 | |||||||||||
Dividends declared per common share | $ | 0.50 | $ | 0.48 | $ | 1.00 | $ | 0.96 |
GATX CORPORATION AND SUBSIDIARIES | |||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
(In millions) | |||||||
2021 | 2020 | ||||||
Assets | |||||||
Cash and Cash Equivalents | $ | 417.9 | $ | 292.2 | |||
Restricted Cash | 0.2 | 0.4 | |||||
Receivables | |||||||
Rent and other receivables | 83.3 | 74.7 | |||||
Finance leases (as lessor) | 66.5 | 74.0 | |||||
Less: allowance for losses | (6.5 | ) | (6.5 | ) | |||
143.3 | 142.2 | ||||||
Operating Assets and Facilities | 10,923.4 | 10,484.0 | |||||
Less: allowance for depreciation | (3,340.7 | ) | (3,313.3 | ) | |||
7,582.7 | 7,170.7 | ||||||
Lease Assets (as lessee) | |||||||
Right-of-use assets, net of accumulated depreciation | 286.3 | 335.9 | |||||
Finance leases, net of accumulated depreciation | 49.5 | 37.5 | |||||
335.8 | 373.4 | ||||||
Investments in Affiliated Companies | 561.4 | 584.7 | |||||
140.3 | 143.7 | ||||||
Other Assets | 218.9 | 230.3 | |||||
Total Assets | $ | 9,400.5 | $ | 8,937.6 | |||
Liabilities and Shareholders’ Equity | |||||||
Accounts Payable and Accrued Expenses | $ | 165.8 | $ | 147.3 | |||
Debt | |||||||
Commercial paper and borrowings under bank credit facilities | 17.9 | 23.6 | |||||
Recourse | 5,803.1 | 5,329.0 | |||||
5,821.0 | 5,352.6 | ||||||
Lease Obligations (as lessee) | |||||||
Operating leases | 298.7 | 348.6 | |||||
Finance leases | 43.6 | 33.3 | |||||
342.3 | 381.9 | ||||||
Deferred Income Taxes | 971.2 | 962.8 | |||||
Other Liabilities | 128.8 | 135.6 | |||||
Total Liabilities | 7,429.1 | 6,980.2 | |||||
Total Shareholders’ Equity | 1,971.4 | 1,957.4 | |||||
Total Liabilities and Shareholders’ Equity | $ | 9,400.5 | $ | 8,937.6 |
GATX CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
SEGMENT DATA (UNAUDITED) | |||||||||||||||||||
Three Months Ended June 30, 2021 | |||||||||||||||||||
(In millions) | |||||||||||||||||||
Rail | Rail International | Portfolio Management | Other | GATX Consolidated | |||||||||||||||
Revenues | |||||||||||||||||||
Lease revenue | $ | 204.2 | $ | 69.0 | $ | 8.3 | $ | 6.1 | $ | 287.6 | |||||||||
Marine operating revenue | — | — | 5.1 | — | 5.1 | ||||||||||||||
Other revenue | 19.2 | 2.7 | 0.2 | 2.3 | 24.4 | ||||||||||||||
Total Revenues | 223.4 | 71.7 | 13.6 | 8.4 | 317.1 | ||||||||||||||
Expenses | |||||||||||||||||||
Maintenance expense | 61.5 | 14.2 | — | 0.9 | 76.6 | ||||||||||||||
Marine operating expense | — | — | 5.5 | — | 5.5 | ||||||||||||||
Depreciation expense | 65.2 | 18.4 | 5.0 | 2.9 | 91.5 | ||||||||||||||
Operating lease expense | 10.2 | — | — | — | 10.2 | ||||||||||||||
Other operating expense | 8.4 | 1.7 | 0.4 | 0.9 | 11.4 | ||||||||||||||
Total Expenses | 145.3 | 34.3 | 10.9 | 4.7 | 195.2 | ||||||||||||||
Other Income (Expense) | |||||||||||||||||||
Net gain on asset dispositions | 33.1 | 0.8 | 0.5 | 0.3 | 34.7 | ||||||||||||||
Interest expense, net | (32.6 | ) | (11.1 | ) | (4.4 | ) | (1.9 | ) | (50.0 | ) | |||||||||
Other (expense) income | (1.0 | ) | 0.2 | — | (7.3 | ) | (8.1 | ) | |||||||||||
Share of affiliates' pre-tax income | — | — | 13.4 | — | 13.4 | ||||||||||||||
Segment profit (loss) | $ | 77.6 | $ | 27.3 | $ | 12.2 | $ | (5.2 | ) | $ | 111.9 | ||||||||
Less: | |||||||||||||||||||
Selling, general and administrative expense | 47.8 | ||||||||||||||||||
Income taxes (includes | 58.6 | ||||||||||||||||||
Net income from continuing operations | $ | 5.5 | |||||||||||||||||
Discontinued operations, net of taxes | |||||||||||||||||||
Net income from discontinued operations, net of taxes | $ | — | |||||||||||||||||
Gain on sale of discontinued operations, net of taxes | — | ||||||||||||||||||
Total discontinued operations, net of taxes | $ | — | |||||||||||||||||
Net income | $ | 5.5 | |||||||||||||||||
Selected Data: | |||||||||||||||||||
Investment volume | $ | 106.4 | $ | 40.8 | $ | 0.5 | $ | 6.2 | $ | 153.9 | |||||||||
Asset Remarketing Income: | |||||||||||||||||||
Net gains on disposition of owned assets | $ | 31.5 | $ | 0.4 | $ | — | $ | 0.3 | $ | 32.2 | |||||||||
Residual sharing income | 0.5 | — | 0.5 | — | 1.0 | ||||||||||||||
Non-remarketing net gains (1) | 1.1 | 0.4 | — | — | 1.5 | ||||||||||||||
$ | 33.1 | $ | 0.8 | $ | 0.5 | $ | 0.3 | $ | 34.7 |
(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 | $ | 210.0 | $ | 59.1 | $ | 0.2 | $ | — | $ | 269.3 | |||||||||
Marine operating revenue | — | — | 3.3 | — | 3.3 | ||||||||||||||
Other revenue | 25.5 | 2.1 | 0.3 | — | 27.9 | ||||||||||||||
Total Revenues | 235.5 | 61.2 | 3.8 | — | 300.5 | ||||||||||||||
Expenses | |||||||||||||||||||
Maintenance expense | 70.4 | 11.9 | — | — | 82.3 | ||||||||||||||
Marine operating expense | — | — | 3.2 | — | 3.2 | ||||||||||||||
Depreciation expense | 64.4 | 15.8 | 1.4 | — | 81.6 | ||||||||||||||
Operating lease expense | 12.5 | — | — | — | 12.5 | ||||||||||||||
Other operating expense | 7.6 | 1.5 | 0.1 | — | 9.2 | ||||||||||||||
Total Expenses | 154.9 | 29.2 | 4.7 | — | 188.8 | ||||||||||||||
Other Income (Expense) | |||||||||||||||||||
Net gain on asset dispositions | 5.2 | 0.2 | 0.6 | — | 6.0 | ||||||||||||||
Interest (expense) income, net | (34.5 | ) | (11.5 | ) | (3.0 | ) | 1.6 | (47.4 | ) | ||||||||||
Other expense | (1.3 | ) | (0.7 | ) | — | (1.0 | ) | (3.0 | ) | ||||||||||
Share of affiliates' pre-tax income | — | — | 22.6 | — | 22.6 | ||||||||||||||
Segment profit | $ | 50.0 | $ | 20.0 | $ | 19.3 | $ | 0.6 | $ | 89.9 | |||||||||
Less: | |||||||||||||||||||
Selling, general and administrative expense | 43.4 | ||||||||||||||||||
Income taxes (includes | 9.5 | ||||||||||||||||||
Net income from continuing operations | $ | 37.0 | |||||||||||||||||
Discontinued operations, net of taxes | |||||||||||||||||||
Net loss from discontinued operations, net of taxes | $ | (1.3 | ) | ||||||||||||||||
Gain on sale of discontinued operations, net of taxes | 3.6 | ||||||||||||||||||
Total discontinued operations, net of taxes | $ | 2.3 | |||||||||||||||||
Net income | $ | 39.3 | |||||||||||||||||
Selected Data: | |||||||||||||||||||
Investment volume | $ | 159.6 | $ | 49.9 | $ | — | $ | 1.0 | $ | 210.5 | |||||||||
Asset Remarketing Income: | |||||||||||||||||||
Net gains on disposition of owned assets | $ | 4.4 | $ | — | $ | 0.1 | $ | — | $ | 4.5 | |||||||||
Residual sharing income | 0.1 | — | 0.5 | — | 0.6 | ||||||||||||||
Non-remarketing net gains (1) | 0.7 | 0.2 | — | — | 0.9 | ||||||||||||||
$ | 5.2 | $ | 0.2 | $ | 0.6 | $ | — | $ | 6.0 |
__________
(1) Includes net gains (losses) from scrapping of railcars.
GATX CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
SEGMENT DATA (UNAUDITED) | |||||||||||||||||||
Six Months Ended | |||||||||||||||||||
(In millions) | |||||||||||||||||||
Rail | Rail International | Portfolio Management | Other | GATX Consolidated | |||||||||||||||
Revenues | |||||||||||||||||||
Lease revenue | $ | 411.0 | $ | 135.9 | $ | 11.6 | $ | 9.7 | $ | 568.2 | |||||||||
Marine operating revenue | — | — | 8.7 | — | 8.7 | ||||||||||||||
Other revenue | 37.0 | 5.2 | 0.4 | 3.4 | 46.0 | ||||||||||||||
Total Revenues | 448.0 | 141.1 | 20.7 | 13.1 | 622.9 | ||||||||||||||
Expenses | |||||||||||||||||||
Maintenance expense | 119.9 | 29.6 | — | 1.4 | 150.9 | ||||||||||||||
Marine operating expense | — | — | 10.1 | — | 10.1 | ||||||||||||||
Depreciation expense | 130.9 | 36.7 | 7.7 | 4.8 | 180.1 | ||||||||||||||
Operating lease expense | 21.1 | — | — | — | 21.1 | ||||||||||||||
Other operating expense | 16.0 | 3.7 | 0.6 | 1.3 | 21.6 | ||||||||||||||
Total Expenses | 287.9 | 70.0 | 18.4 | 7.5 | 383.8 | ||||||||||||||
Other Income (Expense) | |||||||||||||||||||
Net gain on asset dispositions | 54.6 | 1.1 | 1.1 | 0.4 | 57.2 | ||||||||||||||
Interest expense, net | (69.6 | ) | (23.3 | ) | (7.5 | ) | (3.2 | ) | (103.6 | ) | |||||||||
Other (expense) income | (1.8 | ) | 0.2 | — | (7.8 | ) | (9.4 | ) | |||||||||||
Share of affiliates' pre-tax income | — | — | 22.4 | — | 22.4 | ||||||||||||||
Segment profit (loss) | $ | 143.3 | $ | 49.1 | $ | 18.3 | $ | (5.0 | ) | $ | 205.7 | ||||||||
Less: | |||||||||||||||||||
Selling, general and administrative expense | 94.9 | ||||||||||||||||||
Income taxes (includes | 68.8 | ||||||||||||||||||
Net income from continuing operations | $ | 42.0 | |||||||||||||||||
Discontinued operations, net of taxes | |||||||||||||||||||
Net income from discontinued operations, net of taxes | $ | — | |||||||||||||||||
Gain on sale of discontinued operations, net of taxes | — | ||||||||||||||||||
Total discontinued operations, net of taxes | $ | — | |||||||||||||||||
Net income | $ | 42.0 | |||||||||||||||||
Selected Data: | |||||||||||||||||||
Investment volume | $ | 215.5 | $ | 85.2 | $ | 353.0 | $ | 9.7 | $ | 663.4 | |||||||||
Asset Remarketing Income: | |||||||||||||||||||
Net gains on disposition of owned assets | $ | 47.8 | $ | 0.4 | $ | — | $ | 0.3 | $ | 48.5 | |||||||||
Residual sharing income | 0.6 | — | 1.1 | — | 1.7 | ||||||||||||||
Non-remarketing net gains (1) | 6.2 | 0.7 | — | 0.1 | 7.0 | ||||||||||||||
$ | 54.6 | $ | 1.1 | $ | 1.1 | $ | 0.4 | $ | 57.2 |
(1) Includes net gains (losses) from scrapping of railcars.
GATX CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
SEGMENT DATA (UNAUDITED) | |||||||||||||||||||
Six Months Ended | |||||||||||||||||||
(In millions) | |||||||||||||||||||
Rail | Rail International | Portfolio Management | Other | GATX Consolidated | |||||||||||||||
Revenues | |||||||||||||||||||
Lease revenue | $ | 422.1 | $ | 117.4 | $ | 0.5 | $ | — | $ | 540.0 | |||||||||
Marine operating revenue | — | — | 6.6 | — | 6.6 | ||||||||||||||
Other revenue | 49.1 | 3.9 | 0.3 | — | 53.3 | ||||||||||||||
Total Revenues | 471.2 | 121.3 | 7.4 | — | 599.9 | ||||||||||||||
Expenses | |||||||||||||||||||
Maintenance expense | 143.3 | 24.8 | — | — | 168.1 | ||||||||||||||
Marine operating expense | — | — | 7.3 | — | 7.3 | ||||||||||||||
Depreciation expense | 128.0 | 31.3 | 2.7 | — | 162.0 | ||||||||||||||
Operating lease expense | 25.8 | — | — | — | 25.8 | ||||||||||||||
Other operating expense | 14.2 | 3.3 | 0.2 | — | 17.7 | ||||||||||||||
Total Expenses | 311.3 | 59.4 | 10.2 | — | 380.9 | ||||||||||||||
Other Income (Expense) | |||||||||||||||||||
Net gain on asset dispositions | 32.0 | 0.3 | 1.1 | — | 33.4 | ||||||||||||||
Interest (expense) income, net | (67.8 | ) | (22.1 | ) | (5.9 | ) | 2.9 | (92.9 | ) | ||||||||||
Other expense | (2.1 | ) | (6.2 | ) | — | (2.7 | ) | (11.0 | ) | ||||||||||
Share of affiliates' pre-tax income | — | — | 46.4 | — | 46.4 | ||||||||||||||
Segment profit | $ | 122.0 | $ | 33.9 | $ | 38.8 | $ | 0.2 | $ | 194.9 | |||||||||
Less: | |||||||||||||||||||
Selling, general and administrative expense | 83.8 | ||||||||||||||||||
Income taxes (includes | 26.9 | ||||||||||||||||||
Net income from continuing operations | $ | 84.2 | |||||||||||||||||
Discontinued operations, net of taxes | |||||||||||||||||||
Net income from discontinued operations, net of taxes | $ | (2.2 | ) | ||||||||||||||||
Gain on sale of discontinued operations, net of taxes | 3.6 | ||||||||||||||||||
Total discontinued operations, net of taxes | $ | 1.4 | |||||||||||||||||
Net income | $ | 85.6 | |||||||||||||||||
Selected Data: | |||||||||||||||||||
Investment volume | $ | 270.5 | $ | 119.2 | $ | 0.3 | $ | 1.5 | $ | 391.5 | |||||||||
Asset Remarketing Income: | |||||||||||||||||||
Net gains on disposition of owned assets | $ | 31.3 | $ | — | $ | 0.1 | $ | — | $ | 31.4 | |||||||||
Residual sharing income | 0.2 | — | 1.0 | — | 1.2 | ||||||||||||||
Non-remarketing net gains (1) | 0.5 | 0.3 | — | — | 0.8 | ||||||||||||||
$ | 32.0 | $ | 0.3 | $ | 1.1 | $ | — | $ | 33.4 |
(1) Includes net gains (losses) 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 | Six Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Net income (GAAP) | $ | 5.5 | $ | 39.3 | $ | 42.0 | $ | 85.6 | |||||||
Less: Net income from discontinued operations (GAAP) | — | 2.3 | — | 1.4 | |||||||||||
Net income from continuing operations (GAAP) | $ | 5.5 | $ | 37.0 | $ | 42.0 | $ | 84.2 | |||||||
Adjustments attributable to pre-tax income from continuing operations: | |||||||||||||||
Debt extinguishment costs | 4.5 | — | 4.5 | — | |||||||||||
Total adjustments attributable to pre-tax income from continuing operations | $ | 4.5 | $ | — | $ | 4.5 | $ | — | |||||||
Income taxes thereon, based on applicable effective tax rate | $ | (1.1 | ) | $ | — | $ | (1.1 | ) | $ | — | |||||
Adjustments attributable to affiliates' earnings, net of taxes: | |||||||||||||||
Income tax rate change enacted in the | 39.7 | — | 39.7 | — | |||||||||||
Total adjustments attributable to affiliates' earnings, net of taxes | $ | 39.7 | $ | — | $ | 39.7 | $ | — | |||||||
Net income from continuing operations, excluding tax adjustments and other items (non-GAAP) | $ | 48.6 | $ | 37.0 | $ | 85.1 | $ | 84.2 | |||||||
Net income from discontinued operations, excluding tax adjustments and other items (non-GAAP) | $ | — | $ | 2.3 | $ | — | $ | 1.4 | |||||||
Net income from consolidated operations, excluding tax adjustments and other items (non-GAAP) | $ | 48.6 | $ | 39.3 | $ | 85.1 | $ | 85.6 |
Impact of Tax Adjustments and Other Items on Diluted Earnings per Share * | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Diluted earnings per share from continuing operations (GAAP) | $ | 0.15 | $ | 1.05 | $ | 1.17 | $ | 2.38 | |||||||
Diluted earnings per share from discontinued operations (GAAP) | — | 0.06 | — | 0.04 | |||||||||||
Diluted earnings per share from consolidated operations (GAAP) | $ | 0.15 | $ | 1.11 | $ | 1.17 | $ | 2.42 | |||||||
Diluted earnings per share from continuing operations, excluding tax adjustments and other items (non-GAAP) | $ | 1.35 | $ | 1.05 | $ | 2.37 | $ | 2.38 | |||||||
Diluted earnings per share from discontinued operations, excluding tax adjustments and other items (non-GAAP) | $ | — | $ | 0.06 | $ | — | $ | 0.04 | |||||||
Diluted earnings per share from consolidated operations, excluding tax adjustments and other items (non-GAAP) | $ | 1.35 | $ | 1.11 | $ | 2.37 | $ | 2.42 |
(*) 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 | ||||||||||||||||||||
$ | 5,916.3 | $ | 5,896.5 | $ | 5,887.5 | $ | 5,801.5 | $ | 5,700.2 | |||||||||||
1,695.8 | 1,653.4 | 1,699.2 | 1,615.0 | 1,534.2 | ||||||||||||||||
Portfolio Management | 1,023.2 | 1,057.5 | 700.5 | 707.6 | 675.1 | |||||||||||||||
Other | 347.1 | 348.8 | 357.8 | 106.4 | 110.3 | |||||||||||||||
Total Assets, excluding cash | $ | 8,982.4 | $ | 8,956.2 | $ | 8,645.0 | $ | 8,230.5 | $ | 8,019.8 | ||||||||||
Debt and Lease Obligations, Net of Unrestricted Cash | ||||||||||||||||||||
Unrestricted cash | $ | (417.9 | ) | $ | (958.9 | ) | $ | (292.2 | ) | $ | (459.8 | ) | $ | (492.9 | ) | |||||
Commercial paper and bank credit facilities | 17.9 | 19.6 | 23.6 | 13.5 | 5.9 | |||||||||||||||
Recourse debt | 5,803.1 | 6,374.6 | 5,329.0 | 5,183.0 | 5,047.5 | |||||||||||||||
Operating lease obligations | 298.7 | 328.0 | 348.6 | 368.0 | 372.3 | |||||||||||||||
Finance lease obligations | 43.6 | — | 33.3 | — | 31.8 | |||||||||||||||
Total debt and lease obligations, net of unrestricted cash | 5,745.4 | 5,763.3 | 5,442.3 | 5,104.7 | 4,964.6 | |||||||||||||||
Shareholders’ Equity | $ | 1,971.4 | $ | 1,960.0 | $ | 1,957.4 | $ | 1,930.0 | $ | 1,875.3 | ||||||||||
Recourse Leverage (1) | 2.9 | 2.9 | 2.8 | 2.6 | 2.6 |
_________
(1) Calculated as total recourse debt / shareholder's equity.
Reconciliation of Total Assets to Total Assets, Excluding Cash | ||||||||||||||||||||
Total Assets | $ | 9,400.5 | $ | 9,915.3 | $ | 8,937.6 | $ | 8,690.3 | $ | 8,512.7 | ||||||||||
Less: cash | (418.1 | ) | (959.1 | ) | (292.6 | ) | (459.8 | ) | (492.9 | ) | ||||||||||
Total Assets, excluding cash | $ | 8,982.4 | $ | 8,956.2 | $ | 8,645.0 | $ | 8,230.5 | $ | 8,019.8 |
GATX CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
SUPPLEMENTAL INFORMATION (UNAUDITED) | |||||||||||||||||||
(Continued) | |||||||||||||||||||
Rail North America Statistics | |||||||||||||||||||
Lease Price Index (LPI) (1) | |||||||||||||||||||
Average renewal lease rate change | (6.7 | ) | % | (18.1 | ) | % | (22.6 | ) | % | (29.4 | ) | % | (28.0 | ) | % | ||||
Average renewal term (months) | 29 | 30 | 34 | 29 | 31 | ||||||||||||||
Fleet Rollforward (2) | |||||||||||||||||||
Beginning balance | 102,903 | 103,745 | 103,363 | 102,891 | 102,558 | ||||||||||||||
Cars added | 693 | 977 | 1,015 | 1,578 | 1,220 | ||||||||||||||
Cars scrapped | (770 | ) | (1,002 | ) | (571 | ) | (623 | ) | (570 | ) | |||||||||
Cars sold | (682 | ) | (817 | ) | (62 | ) | (483 | ) | (317 | ) | |||||||||
Ending balance | 102,144 | 102,903 | 103,745 | 103,363 | 102,891 | ||||||||||||||
Utilization | 98.5 | % | 97.8 | % | 98.1 | % | 98.2 | % | 98.7 | % | |||||||||
Average active railcars | 100,722 | 101,099 | 101,723 | 101,552 | 101,600 | ||||||||||||||
Boxcar Fleet | |||||||||||||||||||
Ending balance | 12,659 | 13,880 | 14,315 | 14,753 | 14,936 | ||||||||||||||
Utilization | 97.1 | % | 97.1 | % | 95.8 | % | 94.5 | % | 94.6 | % | |||||||||
Rail Europe Statistics | |||||||||||||||||||
Fleet Rollforward | |||||||||||||||||||
Beginning balance | 26,498 | 26,343 | 25,956 | 25,705 | 25,352 | ||||||||||||||
Cars added | 359 | 226 | 446 | 331 | 423 | ||||||||||||||
Cars scrapped/sold | (130 | ) | (71 | ) | (59 | ) | (80 | ) | (70 | ) | |||||||||
Ending balance | 26,727 | 26,498 | 26,343 | 25,956 | 25,705 | ||||||||||||||
Utilization | 98.4 | % | 98.2 | % | 98.1 | % | 98.2 | % | 98.4 | % | |||||||||
Average active railcars | 26,156 | 25,917 | 25,669 | 25,369 | 25,100 | ||||||||||||||
Rail North America Industry Statistics | |||||||||||||||||||
Manufacturing Capacity Utilization Index (3) | 75.4 | % | 74.6 | % | 74.7 | % | 72.3 | % | 68.7 | % | |||||||||
Year-over-year Change in intermodal) (4) | 9.4 | % | (2.6 | ) | % | (12.9 | ) | % | (15.3 | ) | % | (15.9 | ) | % | |||||
Year-over-year Change in | 5.9 | % | (3.8 | ) | % | (3.4 | ) | % | (5.1 | ) | % | (5.0 | ) | % | |||||
Year-over-year Change in | (4.3 | ) | % | (14.4 | ) | % | (14.0 | ) | % | (12.5 | ) | % | (11.1 | ) | % | ||||
Production Backlog at Railcar Manufacturers (5) | n/a (6) | 34,829 | 34,598 | 37,417 | 39,612 | ||||||||||||||
American Steamship Company Statistics | |||||||||||||||||||
Total Net Tons Carried (millions) (7) | — | — | — | — | 2.7 |
_________
(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) Not available, not published as of the date of this release.
(7) Total net tons carried for the second quarter of 2020 reflects volume through
Source:
2021 GlobeNewswire, Inc., source