New York (State or other jurisdiction of incorporation) |
1-2328 (Commission File Number) |
36-1124040 (IRS Employer Identification No.) |
o | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press Release dated April 21, 2011. |
GATX CORPORATION
|
||||
/s/ Robert C. Lyons
Senior Vice-President, Chief Financial Officer |
Exhibit No. | Description | Method of Filing | ||
99.1
|
Press Release of GATX Corporation, dated April 21, 2011, reporting GATX Corporations financial results for the quarter ended March 31, 2011. | Filed Electronically |
NEWS RELEASE |
Thursday, April 21 11:00 A.M. Eastern Time |
||
Domestic Dial-In: | 1-888-282-4591 | |
International Dial-In: | 1-719-325-2170 | |
Replay: 1- 888-203-1112 / Access Code: 9625671 |
Three Months Ended | ||||||||
March 31 | ||||||||
2011 | 2010 | |||||||
Gross Income |
||||||||
Lease income |
$ | 224.8 | $ | 221.2 | ||||
Marine operating revenue |
11.1 | 8.3 | ||||||
Asset remarketing income |
8.9 | 14.4 | ||||||
Other income |
20.2 | 19.7 | ||||||
Revenues |
265.0 | 263.6 | ||||||
Share of affiliates earnings |
17.1 | 18.3 | ||||||
Total Gross Income |
282.1 | 281.9 | ||||||
Ownership Costs |
||||||||
Depreciation |
52.3 | 51.7 | ||||||
Interest expense, net |
42.9 | 42.6 | ||||||
Operating lease expense |
34.6 | 34.6 | ||||||
Total Ownership Costs |
129.8 | 128.9 | ||||||
Other Costs and Expenses |
||||||||
Maintenance expense |
69.3 | 67.8 | ||||||
Marine operating expense |
8.9 | 6.4 | ||||||
Selling, general and administrative |
36.4 | 33.5 | ||||||
Other |
11.9 | 19.0 | ||||||
Total Other Costs and Expenses |
126.5 | 126.7 | ||||||
Income before Income Taxes |
25.8 | 26.3 | ||||||
Income Taxes |
5.9 | 7.6 | ||||||
Net Income |
$ | 19.9 | $ | 18.7 | ||||
Three Months Ended | ||||||||
March 31 | ||||||||
2011 | 2010 | |||||||
Per Share Data |
||||||||
Basic |
$ | 0.43 | $ | 0.41 | ||||
Average number of common shares (in millions) |
46.3 | 46.0 | ||||||
Diluted |
$ | 0.42 | $ | 0.40 | ||||
Average number of common shares and
common share equivalents (in millions) |
47.0 | 47.5 | ||||||
Dividends declared per common share |
$ | 0.29 | $ | 0.28 |
March 31 | December 31 | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Cash and Cash Equivalents |
$ | 53.9 | $ | 78.5 | ||||
Restricted Cash |
54.7 | 56.6 | ||||||
Receivables |
||||||||
Rent and other receivables |
63.6 | 71.1 | ||||||
Finance leases |
333.8 | 347.7 | ||||||
Less: allowance for possible losses |
(11.6 | ) | (11.6 | ) | ||||
385.8 | 407.2 | |||||||
Operating Assets and Facilities |
||||||||
Rail |
5,593.4 | 5,513.6 | ||||||
Specialty |
288.8 | 280.8 | ||||||
ASC |
394.2 | 389.1 | ||||||
Less: allowance for depreciation |
(2,086.7 | ) | (2,049.7 | ) | ||||
4,189.7 | 4,133.8 | |||||||
Investments in Affiliated Companies |
524.6 | 486.1 | ||||||
Goodwill |
96.7 | 92.7 | ||||||
Other Assets |
193.3 | 187.5 | ||||||
Total Assets |
$ | 5,498.7 | $ | 5,442.4 | ||||
Liabilities and Shareholders Equity |
||||||||
Accounts Payable and Accrued Expenses |
$ | 126.4 | $ | 114.6 | ||||
Debt |
||||||||
Commercial paper and borrowings under bank
credit facilities |
175.8 | 115.6 | ||||||
Recourse |
2,810.6 | 2,801.8 | ||||||
Nonrecourse |
193.1 | 217.2 | ||||||
Capital lease obligations |
40.6 | 41.9 | ||||||
3,220.1 | 3,176.5 | |||||||
Deferred Income Taxes |
759.0 | 750.6 | ||||||
Other Liabilities |
239.5 | 287.0 | ||||||
Total Liabilities |
4,345.0 | 4,328.7 | ||||||
Total Shareholders Equity |
1,153.7 | 1,113.7 | ||||||
Total Liabilities and Shareholders Equity |
$ | 5,498.7 | $ | 5,442.4 | ||||
GATX | ||||||||||||||||||||
Rail | Specialty | ASC | Other | Consolidated | ||||||||||||||||
Gross Income |
||||||||||||||||||||
Lease income |
$ | 209.4 | $ | 14.4 | $ | 1.0 | $ | | $ | 224.8 | ||||||||||
Marine operating revenue |
| | 11.1 | | 11.1 | |||||||||||||||
Asset remarketing income |
7.6 | 1.3 | | | 8.9 | |||||||||||||||
Other income |
19.8 | 0.2 | | 0.2 | 20.2 | |||||||||||||||
Revenues |
236.8 | 15.9 | 12.1 | 0.2 | 265.0 | |||||||||||||||
Share of affiliates earnings |
7.1 | 10.0 | | | 17.1 | |||||||||||||||
Total Gross Income |
243.9 | 25.9 | 12.1 | 0.2 | 282.1 | |||||||||||||||
Ownership Costs |
||||||||||||||||||||
Depreciation |
47.9 | 4.4 | | | 52.3 | |||||||||||||||
Interest expense, net |
32.7 | 7.1 | 2.0 | 1.1 | 42.9 | |||||||||||||||
Operating lease expense |
34.4 | 0.3 | | (0.1 | ) | 34.6 | ||||||||||||||
Total Ownership Costs |
115.0 | 11.8 | 2.0 | 1.0 | 129.8 | |||||||||||||||
Other Costs and Expenses |
||||||||||||||||||||
Maintenance expense |
68.9 | | 0.4 | | 69.3 | |||||||||||||||
Marine operating expense |
| | 8.9 | | 8.9 | |||||||||||||||
Other |
8.4 | 3.4 | | 0.1 | 11.9 | |||||||||||||||
Total Other Costs and Expenses |
77.3 | 3.4 | 9.3 | 0.1 | 90.1 | |||||||||||||||
Segment Profit (Loss) |
$ | 51.6 | $ | 10.7 | $ | 0.8 | $ | (0.9 | ) | 62.2 | ||||||||||
Selling, general and administrative |
36.4 | |||||||||||||||||||
Income before Income Taxes |
25.8 | |||||||||||||||||||
Income Taxes |
5.9 | |||||||||||||||||||
Net Income |
$ | 19.9 | ||||||||||||||||||
Selected Data: |
||||||||||||||||||||
Investment Volume |
$ | 53.9 | $ | 36.4 | $ | 5.2 | $ | 0.7 | $ | 96.2 | ||||||||||
Asset Remarketing Income: |
||||||||||||||||||||
Disposition gains on owned assets |
7.6 | 0.2 | | | 7.8 | |||||||||||||||
Residual sharing income |
| 1.1 | | | 1.1 | |||||||||||||||
Total Asset Remarketing Income |
$ | 7.6 | $ | 1.3 | $ | | $ | | $ | 8.9 | ||||||||||
Scrapping Gains (a) |
$ | 6.6 | | | | $ | 6.6 |
(a) | Included in Other income |
GATX | ||||||||||||||||||||
Rail | Specialty | ASC | Other | Consolidated | ||||||||||||||||
Gross Income |
||||||||||||||||||||
Lease income |
$ | 204.9 | $ | 15.3 | $ | 1.0 | $ | | $ | 221.2 | ||||||||||
Marine operating revenue |
| | 8.3 | | 8.3 | |||||||||||||||
Asset remarketing income |
12.5 | 1.9 | | | 14.4 | |||||||||||||||
Other income |
19.3 | 0.2 | | 0.2 | 19.7 | |||||||||||||||
Revenues |
236.7 | 17.4 | 9.3 | 0.2 | 263.6 | |||||||||||||||
Share of affiliates earnings |
8.6 | 9.7 | | | 18.3 | |||||||||||||||
Total Gross Income |
245.3 | 27.1 | 9.3 | 0.2 | 281.9 | |||||||||||||||
Ownership Costs |
||||||||||||||||||||
Depreciation |
47.6 | 4.1 | | | 51.7 | |||||||||||||||
Interest expense, net |
31.7 | 6.8 | 2.1 | 2.0 | 42.6 | |||||||||||||||
Operating lease expense |
34.4 | 0.3 | | (0.1 | ) | 34.6 | ||||||||||||||
Total Ownership Costs |
113.7 | 11.2 | 2.1 | 1.9 | 128.9 | |||||||||||||||
Other Costs and Expenses |
||||||||||||||||||||
Maintenance expense |
67.4 | | 0.4 | | 67.8 | |||||||||||||||
Marine operating expense |
| | 6.4 | | 6.4 | |||||||||||||||
Other |
14.9 | 3.8 | | 0.3 | 19.0 | |||||||||||||||
Total Other Costs and Expenses |
82.3 | 3.8 | 6.8 | 0.3 | 93.2 | |||||||||||||||
Segment Profit (Loss) |
$ | 49.3 | $ | 12.1 | $ | 0.4 | $ | (2.0 | ) | 59.8 | ||||||||||
Selling, general and administrative |
33.5 | |||||||||||||||||||
Income before Income Taxes |
26.3 | |||||||||||||||||||
Income Taxes |
7.6 | |||||||||||||||||||
Net Income |
$ | 18.7 | ||||||||||||||||||
Selected Data: |
||||||||||||||||||||
Investment Volume |
$ | 48.1 | $ | 19.6 | $ | 1.6 | $ | 0.9 | $ | 70.2 | ||||||||||
Asset Remarketing Income: |
||||||||||||||||||||
Disposition gains on owned assets |
12.5 | 0.5 | | | 13.0 | |||||||||||||||
Residual sharing income |
| 1.4 | | | 1.4 | |||||||||||||||
Total Asset Remarketing Income |
$ | 12.5 | $ | 1.9 | $ | | $ | | $ | 14.4 | ||||||||||
Scrapping Gains (a) |
$ | 4.1 | | | | $ | 4.1 |
(a) | Included in Other income |
3/31/2010 | 6/30/2010 | 9/30/2010 | 12/31/2010 | 3/31/2011 | ||||||||||||||||
Assets by Segment (includes off-balance
sheet assets) |
||||||||||||||||||||
Rail |
$ | 4,998.1 | $ | 4,899.7 | $ | 4,978.0 | $ | 5,189.9 | $ | 5,185.8 | ||||||||||
Specialty |
693.8 | 691.5 | 713.8 | 728.1 | 755.5 | |||||||||||||||
ASC |
260.3 | 285.5 | 274.3 | 271.1 | 269.1 | |||||||||||||||
Other |
90.3 | 89.5 | 94.7 | 89.7 | 82.7 | |||||||||||||||
Total Assets, Excluding Cash |
$ | 6,042.5 | $ | 5,966.2 | $ | 6,060.8 | $ | 6,278.8 | $ | 6,293.1 | ||||||||||
Non-performing Investments |
$ | 17.8 | $ | 17.4 | $ | 17.1 | $ | 16.7 | $ | 16.5 | ||||||||||
Capital Structure |
||||||||||||||||||||
Commercial Paper and Bank Credit Facilities,
Net of Unrestricted Cash |
$ | (132.4 | ) | $ | 72.0 | $ | 48.4 | $ | 37.1 | $ | 121.9 | |||||||||
On Balance Sheet Recourse Debt |
2,764.1 | 2,515.3 | 2,534.6 | 2,801.8 | 2,810.6 | |||||||||||||||
On Balance Sheet Nonrecourse Debt |
226.9 | 225.2 | 222.7 | 217.2 | 193.1 | |||||||||||||||
Off Balance Sheet Recourse Debt |
742.6 | 746.3 | 787.4 | 782.8 | 718.3 | |||||||||||||||
Off Balance Sheet Nonrecourse Debt |
200.3 | 197.8 | 195.5 | 188.7 | 184.7 | |||||||||||||||
Capital Lease Obligations |
53.4 | 52.0 | 50.3 | 41.9 | 40.6 | |||||||||||||||
Total Borrowings, Net of Unrestricted Cash |
$ | 3,854.9 | $ | 3,808.6 | $ | 3,838.9 | $ | 4,069.5 | $ | 4,069.2 | ||||||||||
Total Recourse Debt (a) |
$ | 3,427.7 | $ | 3,385.6 | $ | 3,420.7 | $ | 3,663.6 | $ | 3,691.4 | ||||||||||
Shareholders Equity |
$ | 1,096.2 | $ | 1,044.9 | $ | 1,098.6 | $ | 1,113.7 | $ | 1,153.7 | ||||||||||
Recourse Leverage |
3.1 | 3.2 | 3.1 | 3.3 | 3.2 |
(a) | Total Recourse Debt = On Balance Sheet Recourse + Off Balance Sheet Recourse | |
+ | Capital Lease Obligations + Commercial Paper and Bank Credit Facilities, Net of Unrestricted Cash | |
(b) | Recourse Leverage = Total Recourse Debt / Shareholders Equity |
3/31/2010 | 6/30/2010 | 9/30/2010 | 12/31/2010 | 3/31/2011 | ||||||||||||||||
North American Rail Statistics (wholly-owned fleet) |
||||||||||||||||||||
Lease Price Index (LPI) (a) |
||||||||||||||||||||
Average Renewal Lease Rate Change |
-15.2 | % | -18.6 | % | -15.7 | % | -14.0 | % | -0.5 | % | ||||||||||
Average Renewal Term (months) |
31 | 36 | 36 | 36 | 41 | |||||||||||||||
Fleet Rollforward |
||||||||||||||||||||
Beginning Balance |
110,870 | 108,918 | 108,626 | 108,800 | 111,389 | |||||||||||||||
Cars Added |
346 | 434 | 1,189 | 3,479 | 175 | |||||||||||||||
Cars Scrapped |
(1,026 | ) | (726 | ) | (917 | ) | (870 | ) | (963 | ) | ||||||||||
Cars Sold |
(1,272 | ) | | (98 | ) | (20 | ) | (821 | ) | |||||||||||
Ending Balance |
108,918 | 108,626 | 108,800 | 111,389 | 109,780 | |||||||||||||||
Utilization |
96.0 | % | 96.5 | % | 96.8 | % | 97.4 | % | 97.8 | % | ||||||||||
GATX Rail Europe Statistics (wholly-owned fleet) |
||||||||||||||||||||
Fleet Rollforward |
||||||||||||||||||||
Beginning Balance |
20,033 | 20,321 | 20,302 | 20,226 | 20,432 | |||||||||||||||
Cars Added |
288 | 15 | 61 | 298 | 109 | |||||||||||||||
Cars Scrapped/Sold |
| (34 | ) | (137 | ) | (92 | ) | (17 | ) | |||||||||||
Ending Balance |
20,321 | 20,302 | 20,226 | 20,432 | 20,524 | |||||||||||||||
Utilization |
94.4 | % | 94.4 | % | 95.3 | % | 95.7 | % | 95.8 | % | ||||||||||
Rail Industry Statistics |
||||||||||||||||||||
Manufacturing Capacity Utilization Index (b) |
72.8 | % | 74.2 | % | 75.3 | % | 76.8 | % | 77.4 | % | ||||||||||
Year-over-year Change in U.S. Carloadings (total, excl.
intermodal) (c) |
2.2 | % | 7.8 | % | 7.2 | % | 7.3 | % | 5.1 | % | ||||||||||
Year-over-year Change in U.S. Carloadings (chemical) (c) |
13.5 | % | 12.8 | % | 10.2 | % | 9.6 | % | 7.0 | % | ||||||||||
Year-over-year Change in U.S. Carloadings (petroleum products) (c) |
2.0 | % | 4.9 | % | 4.9 | % | 5.9 | % | 9.6 | % | ||||||||||
Production Backlog at Railcar Manufacturers (d) |
12,990 | 14,930 | 19,267 | 22,658 | n/a | (e) | ||||||||||||||
American Steamship Company (ASC) Statistics |
||||||||||||||||||||
Total Net Tons Carried (millions) |
1.3 | 8.3 | 9.9 | 8.5 | 1.2 |
(a) | LPI is an internally generated business indicator that measures general lease rate pricing on renewals within GATXs North American rail fleet. The index reflects the weighted average lease rate for a select group of railcar types that GATX believes to be representative of its overall North American fleet. The LPI measures the percentage change between the weighted average renewal lease rate and the weighted average expiring lease rate. Average renewal term reflects the weighted average renewal lease term in months. | |
(b) | As reported and revised by the Federal Reserve | |
(c) | As reported by the Association of American Railroads (AAR) | |
(d) | As reported by the Railway Supply Institute (RSI) | |
(e) | n/a = not available; not published by the RSI as of the date of this release. |
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