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GATX Corporation Reports 2023 First-Quarter Results

  • Demand for railcars remains strong across all regions
  • First-quarter investment volume totals $387 million
  • Company reiterates 2023 full-year earnings guidance

GATX Corporation (NYSE:GATX) today reported 2023 first-quarter net income of $77.4 million, or $2.16 per diluted share, compared to net income of $75.8 million, or $2.10 per diluted share, in the first quarter of 2022. The 2023 first-quarter results included a net negative impact of $1.3 million, or $0.04 per diluted share, from Tax Adjustments and Other Items. The 2022 first-quarter results included a net negative impact of $8.5 million, or $0.24 per diluted share, from Tax Adjustments and Other Items. Details related to Tax Adjustments and Other Items are provided in the attached Supplemental Information.

"Consistent with our expectations coming into the year, demand across our global railcar fleets remains robust," said Robert C. Lyons, president and chief executive officer of GATX. "At Rail North America, fleet utilization remained high at 99.3% at the end of the first quarter and the renewal success rate during the quarter was 77.9%. The renewal lease rate change of GATX’s Lease Price Index was positive 34.3%. We continue to capitalize on current market conditions by increasing renewal lease rates and lengthening lease terms, thereby locking in high-quality, long-term cash flow.

"During the first quarter, we continued to identify attractive investment opportunities in North America. In addition to successfully placing deliveries of new railcars under our existing and new supply agreements, we acquired over 1,000 railcars in the secondary market that are on long-term leases with attractive rates.

"Rail International performed well, with Rail Europe experiencing higher renewal lease rates versus expiring rates for most car types. Furthermore, we are making progress on our goal of growing and diversifying our fleets in Europe and India, adding a combined total of nearly 1,000 newly built cars in the first quarter. At Portfolio Management, results were driven by improved performance at our Rolls-Royce and Partners Finance affiliates as global air travel continues to recover."

Mr. Lyons concluded, “Based on our solid start in the first quarter, our 2023 full-year earnings estimate remains unchanged at $6.50–$6.90 per diluted share, excluding the impact of Tax Adjustments and Other Items.”

RAIL NORTH AMERICA

Rail North America reported segment profit of $95.2 million in the first quarter of 2023, compared to $120.4 million in the first quarter of 2022. Lower segment profit was primarily the result of lower gains on asset dispositions, partially offset by higher lease revenue.

At March 31, 2023, Rail North America’s wholly owned fleet was composed of approximately 110,000 cars, including approximately 8,800 boxcars. The following fleet statistics and performance discussion exclude the boxcar fleet.

Fleet utilization was 99.3% at the end of the first quarter, compared to 99.5% at the end of the prior quarter and 99.3% at the end of the first quarter of 2022. During the first quarter of 2023, 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 positive 34.3%. This compares to an LPI of positive 29.7% in the prior quarter and positive 9.3% in the first quarter of 2022. The average lease renewal term for all cars included in the LPI during the first quarter was 37 months, compared to 34 months in the prior quarter and 30 months in the first quarter of 2022. The 2023 first-quarter renewal success rate was 77.9%, compared to 85.7% in the prior quarter, and 80.0% in the first quarter of 2022. Rail North America’s investment volume during the first quarter was $296.5 million.

Additional fleet statistics, including information on the boxcar fleet, and macroeconomic data related to Rail North America’s business are provided on the last page of this press release.

RAIL INTERNATIONAL

Rail International’s segment profit was $23.5 million in the first quarter of 2023, compared to $24.9 million in the first quarter of 2022. Compared to the prior year period, results were favorably impacted by more railcars on lease and negatively impacted by changes in foreign currency exchange rates. In the first quarter of 2023, we completed the sale of Rail Russia.

At March 31, 2023, GATX Rail Europe’s (GRE's) fleet consisted of approximately 28,500 cars. Utilization was 98.5%, compared to 99.3% at the end of the prior quarter and 99.0% at the end of the first quarter of 2022. Additional fleet statistics for GRE are provided on the last page of this press release.

PORTFOLIO MANAGEMENT

Portfolio Management reported segment profit of $28.3 million in the first quarter of 2023, compared to segment loss of $3.9 million in the first quarter of 2022. The 2023 first-quarter segment profit included a net negative impact of $1.6 million from Tax Adjustments and Other Items. The 2022 first-quarter segment profit included a net negative impact of $15.3 million from Tax Adjustments and Other Items. Additional details are provided in the attached Supplemental Information under Tax Adjustments and Other Items. Excluding these impacts, higher 2023 first-quarter segment profit was driven by a higher share of affiliates earnings from the Rolls-Royce and Partners Finance affiliates, due to improved performance across the existing engine leasing portfolio and higher remarketing income.

COMPANY DESCRIPTION

At GATX Corporation (NYSE:GATX), we empower our customers to propel the world forward. GATX leases transportation assets including railcars, aircraft spare engines and tank containers to customers worldwide. Our mission is to provide innovative, unparalleled service that enables our customers to transport what matters safely and sustainably while championing the well-being of our employees and communities. Headquartered in Chicago, Illinois since its founding in 1898, GATX has paid a quarterly dividend, uninterrupted, since 1919.

TELECONFERENCE INFORMATION

GATX Corporation will host a teleconference to discuss 2023 first-quarter results. Call details are as follows:

Tuesday, April 25, 2023

11 a.m. Eastern Time

Domestic Dial-In: 1-888-660-6118

International Dial-In: 1-929-203-1802

Replay: 1-800-770-2030 or 1-647-362-9199 / Access Code: 2548217

Call-in details, a copy of this press release and real-time audio access are available at www.gatx.com. Please access the call 15 minutes prior to the start time. A replay will be available on the same site starting at 2 p.m. (Eastern Time), April 25, 2023.

AVAILABILITY OF INFORMATION ON GATX'S WEBSITE

Investors and others should note that GATX routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the GATX Investor Relations website. While not all of the information that the Company posts to the GATX Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in GATX to review the information that it shares on www.gatx.com under the “Investors” tab.

FORWARD-LOOKING STATEMENTS

Statements in this Earnings Release not based on historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and, accordingly, involve known and unknown risks and uncertainties that are difficult to predict and could cause our actual results, performance, or achievements to differ materially from those discussed. These include statements as to our future expectations, beliefs, plans, strategies, objectives, events, conditions, financial performance, prospects, or future events. In some cases, forward-looking statements can be identified by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “outlook,” “continue,” “likely,” “will,” “would”, and similar words and phrases. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the date they are made, and are not guarantees of future performance. We do not undertake any obligation to publicly update or revise these forward-looking statements.

  • The following factors, in addition to those discussed in our other filings with the SEC, including our Form 10-K for the year ended December 31, 2022, could cause actual results to differ materially from our current expectations expressed in forward-looking statements: the impact of the ongoing military action between Russia and Ukraine, including sanctions and countermeasures, on domestic and global economic and geopolitical conditions in general, including supply chain challenges and disruptions
  • the duration and effects of the global COVID-19 pandemic and measures taken in response, including adverse impacts on our operations, commercial activity, supply chain, the demand for our transportation assets, the value of our assets, our liquidity, and macroeconomic conditions
  • exposure to damages, fines, criminal and civil penalties, and reputational harm arising from a negative outcome in litigation, including claims arising from an accident involving transportation assets
  • inability to maintain our transportation assets on lease at satisfactory rates due to oversupply of assets in the market or other changes in supply and demand
  • a significant decline in customer demand for our transportation assets or services, including as a result of:
  • weak macroeconomic conditions or increased interest rates
  • weak market conditions in our customers' businesses
  • adverse changes in the price of, or demand for, commodities
  • changes in railroad operations, efficiency, pricing and service offerings, including those related to "precision scheduled railroading" or labor strikes or shortages
  • changes in, or disruptions to, supply chains
  • availability of pipelines, trucks, and other alternative modes of transportation
  • changes in conditions affecting the aviation industry, including reduced demand for air travel, geographic exposure and customer concentrations
  • other operational or commercial needs or decisions of our customers
  • customers' desire to buy, rather than lease, our transportation assets
  • higher costs associated with increased assignments of our transportation assets following non-renewal of leases, customer defaults, and compliance maintenance programs or other maintenance initiatives
  • events having an adverse impact on assets, customers, or regions where we have a concentrated investment exposure

 

  • financial and operational risks associated with long-term purchase commitments for transportation assets
  • reduced opportunities to generate asset remarketing income
  • inability to successfully consummate and manage ongoing acquisition and divestiture activities
  • reliance on Rolls-Royce in connection with our aircraft spare engine leasing businesses, and the risks that certain factors that adversely affect Rolls-Royce could have an adverse effect on our businesses
  • fluctuations in foreign exchange rates
  • prolonged inflation or deflation
  • inability to attract, retain, and motivate qualified personnel, including key management personnel
  • 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 significantly lower costs of capital
  • risks related to our international operations and expansion into new geographic markets, including laws, regulations, tariffs, taxes, treaties or trade barriers affecting our activities in the countries where we do business
  • changes in, or failure to comply with, laws, rules, and regulations
  • U.S. and global political conditions
  • inability to obtain cost-effective insurance
  • environmental liabilities and remediation costs
  • potential obsolescence of our assets
  • inadequate allowances to cover credit losses in our portfolio
  • operational, functional and regulatory risks associated with climate change, severe weather events and natural disasters, and other environmental, social and governance matters
  • inability to maintain and secure our information technology infrastructure from cybersecurity threats and related disruption of our business
  • changes in assumptions, increases in funding requirements or investment losses in our pension and post-retirement plans
  • inability to maintain effective internal control over financial reporting and disclosure controls and procedures

GATX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In millions, except per share data)

 

Three Months Ended

March 31

 

2023

 

2022

Revenues

 

 

 

Lease revenue

$

302.0

 

 

$

283.3

 

Marine operating revenue

 

3.5

 

 

 

6.2

 

Other revenue

 

33.4

 

 

 

27.1

 

Total Revenues

 

338.9

 

 

 

316.6

 

Expenses

 

 

 

Maintenance expense

 

83.9

 

 

 

74.6

 

Marine operating expense

 

2.0

 

 

 

4.2

 

Depreciation expense

 

89.8

 

 

 

89.5

 

Operating lease expense

 

9.0

 

 

 

9.1

 

Other operating expense

 

11.0

 

 

 

10.7

 

Selling, general and administrative expense

 

50.4

 

 

 

47.2

 

Total Expenses

 

246.1

 

 

 

235.3

 

Other Income (Expense)

 

 

 

Net gain on asset dispositions

 

47.1

 

 

 

73.7

 

Interest expense, net

 

(59.0

)

 

 

(51.2

)

Other expense

 

(4.0

)

 

 

(2.0

)

Income before Income Taxes and Share of Affiliates’ Earnings

 

76.9

 

 

 

101.8

 

Income taxes

 

(20.2

)

 

 

(22.4

)

Share of affiliates’ earnings (losses), net of taxes

 

20.7

 

 

 

(3.6

)

Net Income

$

77.4

 

 

$

75.8

 

 

 

 

 

Share Data

 

 

 

Basic earnings per share

$

2.19

 

 

$

2.13

 

Average number of common shares

 

35.3

 

 

 

35.5

 

 

 

 

 

Diluted earnings per share

$

2.16

 

 

$

2.10

 

Average number of common shares and common share equivalents

 

35.8

 

 

 

36.0

 

 

 

 

 

Dividends declared per common share

$

0.55

 

 

$

0.52

 

GATX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In millions)

 

March 31

 

December 31

 

2023

 

2022

Assets

 

 

 

Cash and Cash Equivalents

$

177.4

 

 

$

303.7

 

Restricted Cash

 

0.2

 

 

 

0.3

 

Short-Term Investments

 

 

 

 

148.5

 

Receivables

 

 

 

Rent and other receivables

 

70.8

 

 

 

71.4

 

Finance leases (as lessor)

 

116.3

 

 

 

96.5

 

Less: allowance for losses

 

(6.0

)

 

 

(5.9

)

 

 

181.1

 

 

 

162.0

 

 

 

 

 

Operating Assets and Facilities

 

11,961.9

 

 

 

11,675.0

 

Less: allowance for depreciation

 

(3,470.0

)

 

 

(3,424.7

)

 

 

8,491.9

 

 

 

8,250.3

 

Lease Assets (as lessee)

 

 

 

Right-of-use assets, net of accumulated depreciation

 

235.4

 

 

 

243.5

 

 

 

235.4

 

 

 

243.5

 

 

 

 

 

Investments in Affiliated Companies

 

597.6

 

 

 

575.1

 

Goodwill

 

118.3

 

 

 

117.2

 

Other Assets ($16.2 and $40.0 related to assets held for sale)

 

246.2

 

 

 

271.4

 

Total Assets

$

10,048.1

 

 

$

10,072.0

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

Accounts Payable and Accrued Expenses

$

174.7

 

 

$

202.2

 

Debt

 

 

 

Commercial paper and borrowings under bank credit facilities

 

20.3

 

 

 

17.3

 

Recourse

 

6,360.9

 

 

 

6,431.5

 

 

 

6,381.2

 

 

 

6,448.8

 

Lease Obligations (as lessee)

 

 

 

Operating leases

 

246.2

 

 

 

257.9

 

 

 

246.2

 

 

 

257.9

 

 

 

 

 

Deferred Income Taxes

 

1,049.1

 

 

 

1,031.5

 

Other Liabilities

 

95.4

 

 

 

102.0

 

Total Liabilities

 

7,946.6

 

 

 

8,042.4

 

Total Shareholders’ Equity

 

2,101.5

 

 

 

2,029.6

 

Total Liabilities and Shareholders’ Equity

$

10,048.1

 

 

$

10,072.0

 

GATX CORPORATION AND SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Three Months Ended March 31, 2023

(In millions)

 

 

 

Rail

North America

 

 

Rail

International

 

 

Portfolio

Management

 

Other

 

GATX

Consolidated

Revenues

 

 

 

 

 

 

 

 

 

Lease revenue

$

215.1

 

 

$

70.4

 

 

$

8.3

 

 

$

8.2

 

$

302.0

 

Marine operating revenue

 

 

 

 

 

 

 

3.5

 

 

 

 

 

3.5

 

Other revenue

 

23.8

 

 

 

2.9

 

 

 

4.5

 

 

 

2.2

 

 

33.4

 

Total Revenues

 

238.9

 

 

 

73.3

 

 

 

16.3

 

 

 

10.4

 

 

338.9

 

Expenses

 

 

 

 

 

 

 

 

 

Maintenance expense

 

66.9

 

 

 

15.9

 

 

 

 

 

 

1.1

 

 

83.9

 

Marine operating expense

 

 

 

 

 

 

 

2.0

 

 

 

 

 

2.0

 

Depreciation expense

 

65.5

 

 

 

15.7

 

 

 

5.4

 

 

 

3.2

 

 

89.8

 

Operating lease expense

 

9.0

 

 

 

 

 

 

 

 

 

 

 

9.0

 

Other operating expense

 

7.0

 

 

 

2.2

 

 

 

0.9

 

 

 

0.9

 

 

11.0

 

Total Expenses

 

148.4

 

 

 

33.8

 

 

 

8.3

 

 

 

5.2

 

 

195.7

 

Other Income (Expense)

 

 

 

 

 

 

 

 

 

Net gain (loss) on asset dispositions

 

47.8

 

 

 

0.8

 

 

 

(1.5

)

 

 

 

 

47.1

 

Interest (expense) income, net

 

(42.3

)

 

 

(12.5

)

 

 

(5.7

)

 

 

1.5

 

 

(59.0

)

Other (expense) income

 

(0.4

)

 

 

(4.3

)

 

 

(0.5

)

 

 

1.2

 

 

(4.0

)

Share of affiliates' pre-tax (losses) earnings

 

(0.4

)

 

 

 

 

 

28.0

 

 

 

 

 

27.6

 

Segment profit

$

95.2

 

 

$

23.5

 

 

$

28.3

 

 

$

7.9

 

$

154.9

 

Less:

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

50.4

 

Income taxes (includes $6.9 related to affiliates' earnings)

 

27.1

 

Net income

$

77.4

 

 

 

 

 

 

 

 

 

 

 

Selected Data:

 

 

 

 

 

 

 

 

 

Investment volume

$

296.5

 

 

$

81.1

 

 

$

 

 

$

9.4

 

$

387.0

 

 

 

 

 

 

 

 

 

 

 

Net Gain (Loss) on Asset Dispositions

 

 

 

 

 

 

 

 

 

Asset Remarketing Income:

 

 

 

 

 

 

 

 

 

Net gains (losses) on disposition of owned assets

$

44.7

 

 

$

0.4

 

 

$

(0.4

)

 

$

 

$

44.7

 

Residual sharing income

 

0.1

 

 

 

 

 

 

0.1

 

 

 

 

 

0.2

 

Non-remarketing net gains (1)

 

3.0

 

 

 

0.4

 

 

 

 

 

 

 

 

3.4

 

Asset impairments

 

 

 

 

 

 

 

(1.2

)

 

 

 

 

(1.2

)

 

$

47.8

 

 

$

0.8

 

 

$

(1.5

)

 

$

 

$

47.1

 

__________

(1) Includes net gains (losses) from scrapping of railcars.

GATX CORPORATION AND SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Three Months Ended March 31, 2022

(In millions)

 

 

 

 

Rail

North America

 

 

Rail

International

 

 

Portfolio

Management

 

Other

 

GATX

Consolidated

Revenues

 

 

 

 

 

 

 

 

 

Lease revenue

$

200.7

 

 

$

67.6

 

 

$

8.3

 

 

$

6.7

 

 

$

283.3

 

Marine operating revenue

 

 

 

 

 

 

 

6.2

 

 

 

 

 

 

6.2

 

Other revenue

 

23.0

 

 

 

2.3

 

 

 

 

 

 

1.8

 

 

 

27.1

 

Total Revenues

 

223.7

 

 

 

69.9

 

 

 

14.5

 

 

 

8.5

 

 

 

316.6

 

Expenses

 

 

 

 

 

 

 

 

 

Maintenance expense

 

59.9

 

 

 

14.0

 

 

 

 

 

 

0.7

 

 

 

74.6

 

Marine operating expense

 

 

 

 

 

 

 

4.2

 

 

 

 

 

 

4.2

 

Depreciation expense

 

63.5

 

 

 

18.0

 

 

 

5.0

 

 

 

3.0

 

 

 

89.5

 

Operating lease expense

 

9.1

 

 

 

 

 

 

 

 

 

 

 

 

9.1

 

Other operating expense

 

7.3

 

 

 

2.4

 

 

 

0.5

 

 

 

0.5

 

 

 

10.7

 

Total Expenses

 

139.8

 

 

 

34.4

 

 

 

9.7

 

 

 

4.2

 

 

 

188.1

 

Other Income (Expense)

 

 

 

 

 

 

 

 

 

Net gain on asset dispositions

 

71.6

 

 

 

1.0

 

 

 

0.9

 

 

 

0.2

 

 

 

73.7

 

Interest expense, net

 

(34.4

)

 

 

(11.2

)

 

 

(4.7

)

 

 

(0.9

)

 

 

(51.2

)

Other expense

 

(0.7

)

 

 

(0.4

)

 

 

(0.1

)

 

 

(0.8

)

 

 

(2.0

)

Share of affiliates' pre-tax losses

 

 

 

 

 

 

 

(4.8

)

 

 

 

 

 

(4.8

)

Segment profit (loss)

$

120.4

 

 

$

24.9

 

 

$

(3.9

)

 

$

2.8

 

 

$

144.2

 

Less:

 

 

 

 

 

 

 

 

 

Selling, general and administrative expense

 

47.2

 

Income taxes (includes $1.2 of income tax benefit related to affiliates' losses)

 

21.2

 

Net income

$

75.8

 

 

 

 

 

 

 

 

 

 

 

Selected Data:

 

 

 

 

 

 

 

 

 

Investment volume

$

280.4

 

 

$

78.9

 

 

$

 

 

$

11.1

 

 

$

370.4

 

 

 

 

 

 

 

 

 

 

 

Net Gain on Asset Dispositions

 

 

 

 

 

 

 

 

 

Asset Remarketing Income:

 

 

 

 

 

 

 

 

 

Net gains on disposition of owned assets

$

64.4

 

 

$

0.4

 

 

$

 

 

$

0.1

 

 

$

64.9

 

Residual sharing income

 

2.0

 

 

 

 

 

 

0.9

 

 

 

 

 

 

2.9

 

Non-remarketing net gains (1)

 

5.2

 

 

 

0.6

 

 

 

 

 

 

0.1

 

 

 

5.9

 

 

$

71.6

 

 

$

1.0

 

 

$

0.9

 

 

$

0.2

 

 

$

73.7

 

__________

(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(1)

 

Three Months Ended

March 31

 

2023

 

2022

Net income (GAAP)

$

77.4

 

 

$

75.8

 

Adjustments attributable to consolidated pre-tax income:

 

 

 

Gain on sale of Rail Russia at Rail International (2)

$

(0.3

)

 

$

 

Loss on Specialized Gas Vessels at Portfolio Management (3)

 

1.6

 

 

 

 

Total adjustments attributable to consolidated pre-tax income

$

1.3

 

 

$

 

Income taxes thereon, based on applicable effective tax rate

$

 

 

$

 

Other income tax adjustments attributable to consolidated income:

 

 

 

Income tax rate change (4)

 

 

 

 

(3.0

)

Total other income tax adjustments attributable to consolidated income

$

 

 

$

(3.0

)

Adjustments attributable to affiliates' earnings, net of taxes:

 

 

 

Aircraft spare engine impairment at RRPF (5)

 

 

 

 

11.5

 

Total adjustments attributable to affiliates' earnings, net of taxes

$

 

 

$

11.5

 

Net income, excluding tax adjustments and other items (non-GAAP)

$

78.7

 

 

$

84.3

 

Impact of Tax Adjustments and Other Items on Diluted Earnings per Share(1)

 

 

Three Months Ended

March 31

 

2023

 

2022

Diluted earnings per share (GAAP)

$

2.16

 

$

2.10

Diluted earnings per share, excluding tax adjustments and other items (non-GAAP)

$

2.20

 

$

2.34

_________

(1)

In addition to financial results reported in accordance with GAAP, we compute certain financial measures using non-GAAP components. Specifically, we exclude the effects of certain tax adjustments and other items for purposes of presenting net income and diluted earnings per share because we believe these items are not attributable to our business operations. Management utilizes net income, excluding tax adjustments and other items, when analyzing financial performance because such amounts reflect the underlying operating results that are within management’s ability to influence. Accordingly, we believe presenting this information provides investors and other users of our financial statements with meaningful supplemental information for purposes of analyzing year-to-year financial performance on a comparable basis and assessing trends.

(2)

In the third quarter of 2022, we made the decision to exit our rail business in Russia ("Rail Russia). In the first quarter of 2023, we sold Rail Russia and recorded a gain on the final sale of this business.

(3)

In the second quarter of 2022, we made the decision to sell the Specialized Gas Vessels. In the first quarter of 2023, we recorded losses associated with these assets.

(4)

Deferred income tax adjustment due to an enacted corporate income tax rate reduction in Austria in 2022.

(5)

Impairment losses related to aircraft spare engines in Russia that RRPF does not expect to recover.

GATX CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION (UNAUDITED)

(In millions, except leverage)

 

 

 

 

3/31/2023

 

12/31/2022

 

9/30/2022

 

6/30/2022

 

3/31/2022

Total Assets, Excluding Cash and Short-Term Investments, by Segment

Rail North America

 

$

6,610.8

 

 

$

6,439.1

 

 

$

6,405.4

 

 

$

6,347.2

 

 

$

6,183.7

 

Rail International

 

 

1,801.2

 

 

 

1,731.3

 

 

 

1,554.3

 

 

 

1,634.5

 

 

 

1,677.9

 

Portfolio Management

 

 

1,089.6

 

 

 

1,084.8

 

 

 

970.9

 

 

 

1,010.3

 

 

 

1,031.5

 

Other

 

 

368.9

 

 

 

364.3

 

 

 

348.2

 

 

 

351.7

 

 

 

366.0

 

Total Assets, excluding cash and short-term investments

 

$

9,870.5

 

 

$

9,619.5

 

 

$

9,278.8

 

 

$

9,343.7

 

 

$

9,259.1

 

 

Debt and Lease Obligations, Net of Unrestricted Cash and Short-Term Investments

Unrestricted cash and short-term investments

 

$

(177.4

)

 

$

(452.2

)

 

$

(596.3

)

 

$

(180.3

)

 

$

(649.3

)

Commercial paper and bank credit facilities

 

 

20.3

 

 

 

17.3

 

 

 

16.3

 

 

 

20.0

 

 

 

18.6

 

Recourse debt

 

 

6,360.9

 

 

 

6,431.5

 

 

 

6,353.1

 

 

 

5,964.4

 

 

 

6,256.9

 

Operating lease obligations

 

 

246.2

 

 

 

257.9

 

 

 

259.0

 

 

 

266.7

 

 

 

273.4

 

Total debt and lease obligations, net of unrestricted cash and short-term investments

 

$

6,450.0

 

 

$

6,254.5

 

 

$

6,032.1

 

 

$

6,070.8

 

 

$

5,899.6

 

Total recourse debt (1)

 

$

6,450.0

 

 

$

6,254.5

 

 

$

6,032.1

 

 

$

6,070.8

 

 

$

5,899.6

 

Shareholders’ Equity

 

$

2,101.5

 

 

$

2,029.6

 

 

$

1,940.5

 

 

$

1,981.5

 

 

$

2,060.8

 

Recourse Leverage (2)

 

 

3.1

 

 

 

3.1

 

 

 

3.1

 

 

 

3.1

 

 

 

2.9

 

_________

(1)

Includes recourse debt, commercial paper and bank credit facilities, and operating and finance lease obligations, net of unrestricted cash and short-term investments.

(2)

 

 

Calculated as total recourse debt / shareholder's equity.

Reconciliation of Total Assets to Total Assets, Excluding Cash and Short-Term Investments

Total Assets

 

$

10,048.1

 

 

$

10,072.0

 

 

$

9,875.4

 

 

$

9,524.2

 

 

$

9,908.6

 

Less: cash and short-term investments

 

 

(177.6

)

 

 

(452.5

)

 

 

(596.6

)

 

 

(180.5

)

 

 

(649.5

)

Total Assets, excluding cash and short-term investments

 

$

9,870.5

 

 

$

9,619.5

 

 

$

9,278.8

 

 

$

9,343.7

 

 

$

9,259.1

 

GATX CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION (UNAUDITED)

(Continued)

 

 

3/31/2023

 

12/31/2022

 

9/30/2022

 

6/30/2022

 

3/31/2022

Rail North America Statistics

 

 

 

 

 

 

 

 

 

Lease Price Index (LPI) (1)

 

 

 

 

 

 

 

 

 

Average renewal lease rate change

34.3

%

 

29.7

%

 

37.5

%

 

18.3

%

 

9.3

%

Average renewal term (months)

37

 

 

34

 

 

33

 

 

34

 

 

30

 

Renewal Success Rate (2)

77.9

%

 

85.7

%

 

87.2

%

 

87.7

%

 

80.0

%

Fleet Rollforward (3)

 

 

 

 

 

 

 

 

 

Beginning balance

100,954

 

 

101,289

 

 

101,272

 

 

100,452

 

 

101,570

 

Cars added

1,816

 

 

583

 

 

772

 

 

1,414

 

 

943

 

Cars scrapped

(324

)

 

(486

)

 

(506

)

 

(594

)

 

(547

)

Cars sold

(1,227

)

 

(432

)

 

(249

)

 

 

 

(1,514

)

Ending balance

101,219

 

 

100,954

 

 

101,289

 

 

101,272

 

 

100,452

 

Utilization

99.3

%

 

99.5

%

 

99.6

%

 

99.4

%

 

99.3

%

Average active railcars

100,552

 

 

100,618

 

 

100,783

 

 

100,079

 

 

100,253

 

Boxcar Fleet Rollforward

 

 

 

 

 

 

 

 

 

Beginning balance

8,663

 

 

10,224

 

 

10,315

 

 

10,283

 

 

12,946

 

Cars added

229

 

 

106

 

 

 

 

85

 

 

352

 

Cars scrapped

(103

)

 

(94

)

 

(91

)

 

64

 

 

(109

)

Cars sold

 

 

(1,573

)

 

 

 

(117

)

 

(2,906

)

Ending balance

8,789

 

 

8,663

 

 

10,224

 

 

10,315

 

 

10,283

 

Utilization

100.0

%

 

99.9

%

 

100.0

%

 

99.9

%

 

99.8

%

Average active railcars

8,720

 

 

9,032

 

 

10,267

 

 

10,239

 

 

10,856

 

Rail Europe Statistics

 

 

 

 

 

 

 

 

 

Fleet Rollforward

 

 

 

 

 

 

 

 

 

Beginning balance

28,005

 

 

27,701

 

 

27,470

 

 

27,192

 

 

27,109

 

Cars added

502

 

 

362

 

 

277

 

 

347

 

 

225

 

Cars scrapped/sold

(46

)

 

(58

)

 

(46

)

 

(69

)

 

(142

)

Ending balance

28,461

 

 

28,005

 

 

27,701

 

 

27,470

 

 

27,192

 

Utilization

98.5

%

 

99.3

%

 

99.4

%

 

99.9

%

 

99.0

%

Average active railcars

27,931

 

 

27,658

 

 

27,489

 

 

27,158

 

 

26,850

 

_________

(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)

The renewal success rate represents the percentage of railcars on expiring leases that were renewed with the existing lessee. The renewal success rate is an important metric because railcars returned by our customers may remain idle or incur additional maintenance and freight costs prior to being leased to new customers.

(3)

Excludes boxcar fleet.

GATX CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION (UNAUDITED)

(Continued)

 

 

3/31/2023

 

12/31/2022

 

9/30/2022

 

6/30/2022

 

3/31/2022

Rail North America Industry Statistics

 

 

 

 

 

 

 

 

 

Manufacturing Capacity Utilization Index (1)

79.8

%

 

78.9

%

 

80.1

%

 

79.8

%

 

79.9

%

Year-over-year Change in U.S. Carloadings (excl. intermodal) (2)

(0.3

)%

 

(0.3

) %

 

0.1

%

 

(0.1

) %

 

2.6

%

Year-over-year Change in U.S. Carloadings (chemical) (2)

(6.8

) %

 

%

 

3.1

%

 

4.9

%

 

9.4

%

Year-over-year Change in U.S. Carloadings (petroleum) (2)

12.3

%

 

(7.6

)%

 

(10.4

)%

 

(13.1

)%

 

(15.3

)%

Production Backlog at Railcar Manufacturers (3)

n/a (4)

 

58,898

 

 

61,415

 

 

47,461

 

 

46,208

 

_________

(1)

As reported and revised by the Federal Reserve.

(2)

As reported by the Association of American Railroads (AAR).

(3)

As reported by the Railway Supply Institute (RSI).

(4)

Not available, not published as of the date of this release.

 

Contacts

GATX Corporation

Shari Hellerman

Senior Director, Investor Relations, ESG, and External Communications

312-621-4285

shari.hellerman@gatx.com

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