EX-99.1 2 d384874dex991.htm PRESS RELEASE DATED JULY 19, 2012 Press Release dated July 19, 2012

Exhibit 99.1

NEWS RELEASE

 

LOGO

FOR RELEASE: IMMEDIATE

GATX CORPORATION REPORTS 2012 SECOND QUARTER RESULTS

CHICAGO, IL, July 19, 2012—GATX Corporation (NYSE:GMT) today reported 2012 second quarter net income of $23.5 million or $.49 per diluted share, compared to net income of $26.4 million or $.56 per diluted share in the second quarter of 2011. The 2012 and 2011 second quarter results include the aggregate impact from Tax Adjustments and Other Items of negative $15.3 million or $.31 per diluted share and positive $6.2 million or $.13 per diluted share, respectively.

Net income for the first six months of 2012 was $53.8 million or $1.13 per diluted share, compared to $46.3 million or $.98 per diluted share in the prior year period. The 2012 and 2011 year-to-date results include the impact from Tax Adjustments and Other Items of negative $17.5 million or $.36 per diluted share and positive $12.6 million or $.27 per diluted share, respectively. Details related to the Tax Adjustments and Other Items are provided in the attached Supplemental Information.

Brian A. Kenney, president and chief executive officer of GATX, said, “We are seeing continued strong demand for most railcar types in our fleet. During the second quarter, GATX’s Lease Price Index (“LPI”) was a positive 23.9% and the average renewal term for cars in the LPI was 59 months. These results were achieved while maintaining over 98% utilization of the North American railcar fleet.

“There is also healthy demand for new railcars delivering under our five-year supply agreement. Railcars scheduled to deliver through the end of 2013 have already been allocated to customers on long-term leases at very attractive rates.”

Mr. Kenney continued, “In Europe, we are placing new tank car deliveries at favorable rates and demand for existing tank cars remains solid. Also, during the quarter we announced our entry into the Indian railcar leasing market with the purchase of railcars that will begin to deliver in August.

“The sailing season is off to a good start for American Steamship Company (“ASC”). Customer demand was strong throughout the quarter, particularly for iron ore shipments. In the Portfolio Management segment, Rolls-Royce and Partners Finance (“RRPF”) performed well and charter rates improved for the ocean-going marine joint ventures carrying ethylene.”

Mr. Kenney concluded, “Based on year-to-date performance and continued strength in rail, we are increasing our 2012 full-year earnings expectations to a range $2.65-$2.75 per diluted share. This guidance excludes any impact related to Tax Adjustments and Other Items.”


Page 2

 

RAIL

Rail segment profit was $49.6 million in the second quarter of 2012, compared to $56.7 million in the second quarter of 2011. The 2012 and 2011 second quarter results include the pre-tax impact from Other Items of negative $16.3 million and positive $6.9 million, respectively.

Rail reported segment profit of $108.2 million year-to-date 2012, compared to $108.3 million in the same period of 2011. The 2012 and 2011 year-to-date results include the pre-tax impact from Other Items of negative $18.8 million and positive $14.1 million, respectively. Excluding the impact from Other Items, segment profit improved compared to prior year periods primarily due to higher lease rates in North America, increased asset remarketing activity and lower maintenance expense due to the high renewal success rate.

At June 30, 2012, Rail’s wholly-owned North American fleet totaled approximately 109,000 cars, and fleet utilization was 98.3% compared to 98.5% at the end of the first quarter and 98.2% at June 30, 2011. GATX’s LPI was a positive 23.9% in the second quarter, compared to a positive 19.2% in the first quarter and a positive 4.4% in the 2011 second quarter. The average lease renewal term for cars in the LPI during the second quarter was 59 months, up from 55 months in the first quarter and 41 months in the second quarter of 2011.

The European wholly-owned tank car fleet totaled approximately 21,000 cars and utilization was 96.3% compared to 96.7% at the end of the first quarter and 95.7% at June 30, 2011.

Additional current and historical fleet and operating data as well as macroeconomic data related to Rail’s business can be found on the last page of this press release.

AMERICAN STEAMSHIP COMPANY

American Steamship Company (“ASC”) reported segment profit of $14.0 million in the second quarter of 2012 compared to $8.6 million in the second quarter 2011. Segment profit year-to-date 2012 was $16.1 million, compared to $9.4 million year-to-date 2011. ASC carried 10.5 million net tons through the second quarter of 2012 compared to 9.0 million net tons in the prior year period. The increased tonnage and improved rates drove the improvement in segment profit.

PORTFOLIO MANAGEMENT

Portfolio Management reported segment profit of $14.6 million in the second quarter of 2012 compared to $8.8 million in the prior year period. The improvement in segment profit was primarily attributable to higher affiliate earnings, which included asset remarketing at Rolls-Royce and Partners Finance (“RRPF”) and improved results from the ocean-going marine joint ventures operating in the ethylene market. During the second quarter, GATX and the Clipper Group sold the two remaining handy-size bulk carriers from the Clipper Third joint venture.

Year to date, Portfolio Management reported segment profit of $36.6 million compared to $19.5 million in the same period of 2011. Increased asset remarketing activity and the improved affiliate earnings described above are the primary drivers of the increase in segment profit compared to the prior year period.


Page 3

 

The Portfolio Management segment currently consists of approximately $804.7 million of owned assets and third-party managed portfolios totaling approximately $149.0 million.

COMPANY DESCRIPTION

GATX Corporation (NYSE:GMT) strives to be recognized as the finest railcar leasing company in the world by its customers, its shareholders, its employees and the communities where it operates. Controlling one of the largest railcar fleets in the world, GATX has been providing quality railcars and services to its customers for 114 years. GATX has been headquartered in Chicago, Illinois since its founding in 1898 and has traded on the New York Stock Exchange since 1916. For more information, visit the Company’s website at www.gatx.com.

TELECONFERENCE INFORMATION

GATX Corporation will host a teleconference to discuss 2012 second quarter. Teleconference details are as follows:

Thursday, July 19th

11:00 A.M. Eastern Time

Domestic Dial-In: 1-800-946-0708

International Dial-In: 1-719-457-2640

Replay: 1-888-203-1112 or 1-719-457-0820 /Access Code: 4451310

Call-in details, a copy of this press release and real-time audio access are available at www.gatx.com. Please access the call 15 minutes prior to the start time. Following the call, a replay will be available on the same site.

FORWARD-LOOKING STATEMENTS

This document contains statements that may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to the safe harbor provisions of those sections and the Private Securities Litigation Reform Act of 1995. Some of these statements may be identified by words like “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “predict,” “project” or other similar words. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in GATX’s Annual Report on Form 10-K for the year ended December 31, 2011 and other filings with the SEC, and that actual results or developments may differ materially from those in the forward-looking statements.

Specific factors that might cause actual results to differ from expectations include, but are not limited to, (1) general economic, market, regulatory and political conditions affecting the rail, marine and other industries served by GATX and its customers; (2) competitive factors in GATX’s primary markets, including lease pricing and asset availability; (3) lease rates, utilization levels and operating costs in GATX’s primary operating segments; (4) conditions in the capital markets or changes in GATX’s credit ratings and financing costs; (5) risks related to compliance with, or changes to, laws, rules and regulations applicable to GATX and its rail, marine and other assets; (6) costs associated with maintenance initiatives; (7) operational and financial risks associated with long-term railcar purchase commitments; (8) changes in loss provision levels within GATX’s portfolio; (9) conditions affecting certain assets, customers or regions where GATX has a large investment; (10) impaired asset charges that may result from changing market conditions or portfolio management decisions implemented by GATX; (11) opportunities for remarketing income; (12) labor relations with unions representing GATX employees; and (13) the outcome of pending or threatened litigation.


Page 4

 

Given these risks and uncertainties, readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis, judgment, belief or expectation only as of the date hereof. GATX has based these forward-looking statements on information currently available and disclaims any intention or obligation to update or revise these forward-looking statements to reflect subsequent events or circumstances.

FOR FURTHER INFORMATION CONTACT:

GATX Corporation

Jennifer Van Aken

312-621-6689

jennifer.vanaken@gatx.com

Investor, corporate, financial, historical financial, photographic and news release information may be found at www.gatx.com.

(7/19/12)

—Tabular Follows—


Page 5

 

GATX CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In Millions, Except Per Share Data)

 

     Three Months Ended
June 30
     Six Months Ended
June 30
 
     2012     2011      2012      2011  

Gross Income

          

Lease income

   $ 232.6      $ 227.2       $ 464.9       $ 452.0   

Marine operating revenue

     76.2        56.6         86.9         67.7   

Asset remarketing income

     15.0        8.2         36.6         17.1   

Other income

     19.2        22.6         39.1         42.8   
  

 

 

   

 

 

    

 

 

    

 

 

 

Revenues

     343.0        314.6         627.5         579.6   

Share of affiliates’ earnings

     (1.3     15.0         4.2         32.1   
  

 

 

   

 

 

    

 

 

    

 

 

 

Total Gross Income

     341.7        329.6         631.7         611.7   

Ownership Costs

          

Depreciation

     59.5        57.3         115.2         109.6   

Interest expense, net

     41.6        43.1         84.2         86.0   

Operating lease expense

     32.5        33.3         63.9         67.9   
  

 

 

   

 

 

    

 

 

    

 

 

 

Total Ownership Costs

     133.6        133.7         263.3         263.5   

Other Costs and Expenses

          

Maintenance expense

     67.6        70.8         128.3         140.1   

Marine operating expense

     49.6        39.2         57.3         48.1   

Selling, general and administrative

     38.9        37.4         77.0         73.8   

Other

     13.2        12.8         23.5         24.7   
  

 

 

   

 

 

    

 

 

    

 

 

 

Total Other Costs and Expenses

     169.3        160.2         286.1         286.7   
  

 

 

   

 

 

    

 

 

    

 

 

 

Income before Income Taxes

     38.8        35.7         82.3         61.5   

Income Taxes

     15.3        9.3         28.5         15.2   
  

 

 

   

 

 

    

 

 

    

 

 

 

Net Income

   $ 23.5      $ 26.4       $ 53.8       $ 46.3   
  

 

 

   

 

 

    

 

 

    

 

 

 


Page 6

 

GATX CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In Millions, Except Per Share Data)

 

     Three Months Ended
June 30
     Six Months Ended
June 30
 
     2012      2011      2012      2011  

Per Share Data

           

Basic

   $ 0.50       $ 0.57       $ 1.15       $ 1.00   
  

 

 

    

 

 

    

 

 

    

 

 

 

Average number of common shares

     46.8         46.4         46.8         46.4   

Diluted

   $ 0.49       $ 0.56       $ 1.13       $ 0.98   
  

 

 

    

 

 

    

 

 

    

 

 

 

Average number of common shares and common share equivalents

     47.5         47.2         47.5         47.1   

Dividends declared per common share

   $ 0.30       $ 0.29       $ 0.60       $ 0.58   


Page 7

 

GATX CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In Millions)

 

     June 30
2012
    December 31
2011
 

Assets

    

Cash and Cash Equivalents

   $ 227.7      $ 248.4   

Restricted Cash

     30.0        35.2   

Receivables

    

Rent and other receivables

     84.1        76.7   

Loans

     29.6        30.4   

Finance leases

     241.1        334.9   

Less: allowance for losses

     (3.1     (11.8
  

 

 

   

 

 

 
     351.7        430.2   

Operating Assets and Facilities

    

Rail

     5,868.0        5,692.6   

ASC

     386.1        374.7   

Portfolio Management

     361.4        348.7   

Less: allowance for depreciation

     (2,107.4     (2,056.7
  

 

 

   

 

 

 
     4,508.1        4,359.3   

Investments in Affiliated Companies

     519.5        513.8   

Goodwill

     89.0        90.5   

Other Assets

     191.9        180.1   
  

 

 

   

 

 

 

Total Assets

   $ 5,917.9      $ 5,857.5   
  

 

 

   

 

 

 

Liabilities and Shareholders’ Equity

    

Accounts Payable and Accrued Expenses

   $ 137.4      $ 135.6   

Debt

    

Commercial paper and borrowings under bank credit facilities

     100.5        28.6   

Recourse

     3,328.2        3,354.8   

Nonrecourse

     136.5        149.4   

Capital lease obligations

     12.5        14.3   
  

 

 

   

 

 

 
     3,577.7        3,547.1   

Deferred Income Taxes

     785.8        765.9   

Other Liabilities

     246.3        281.6   
  

 

 

   

 

 

 

Total Liabilities

     4,747.2        4,730.2   

Total Shareholders’ Equity

     1,170.7        1,127.3   
  

 

 

   

 

 

 

Total Liabilities and Shareholders’ Equity

   $ 5,917.9      $ 5,857.5   
  

 

 

   

 

 

 


Page 8

 

GATX CORPORATION AND SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Three Months Ended June 30, 2012

(In Millions)

 

     Rail     ASC     Portfolio
Management
     Other     GATX
Consolidated
 

Gross Income

           

Lease income

   $ 215.7      $ 1.0      $ 15.9       $ —        $ 232.6   

Marine operating revenue

     —          76.2        —           —          76.2   

Asset remarketing income

     12.4        —          2.6         —          15.0   

Other income

     18.3        —          0.6         0.3        19.2   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Revenues

     246.4        77.2        19.1         0.3        343.0   

Share of affiliates’ earnings

     (14.5     —          13.2         —          (1.3
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total Gross Income

     231.9        77.2        32.3         0.3        341.7   

Ownership Costs

           

Depreciation

     50.4        3.9        5.2         —          59.5   

Interest expense, net

     32.4        1.9        6.5         0.8        41.6   

Operating lease expense

     31.3        1.2        0.1         (0.1     32.5   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total Ownership Costs

     114.1        7.0        11.8         0.7        133.6   

Other Costs and Expenses

           

Maintenance expense

     60.9        6.7        —           —          67.6   

Marine operating expense

     —          49.6        —           —          49.6   

Other

     7.3        (0.1     5.9         0.1        13.2   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total Other Costs and Expenses

     68.2        56.2        5.9         0.1        130.4   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Segment Profit (Loss)

   $ 49.6      $ 14.0      $ 14.6       $ (0.5     77.7   
  

 

 

   

 

 

   

 

 

    

 

 

   

Selling, general and administrative

              38.9   
           

 

 

 

Income before Income Taxes

              38.8   

Income Taxes

              15.3   
           

 

 

 

Net Income

            $ 23.5   
           

 

 

 
Selected Data:            

Investment Volume

   $ 176.9      $ 5.5      $ 53.4       $ 2.3      $ 238.1   

Asset Remarketing Income:

           

Disposition Gains on Owned Assets

     11.4        —          1.5         —          12.9   

Residual Sharing Income

     1.0        —          1.1         —          2.1   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total Asset Remarketing Income

   $ 12.4      $ —        $ 2.6       $ —        $ 15.0   

Scrapping Gains (a)

   $ 4.7      $ —        $ —         $ —        $ 4.7   

 

(a) Included in Other income


Page 9

 

GATX CORPORATION AND SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Six Months Ended June 30, 2012

(In Millions)

 

     Rail     ASC     Portfolio
Management
     Other     GATX
Consolidated
 

Gross Income

           

Lease income

   $ 430.3      $ 2.1      $ 32.5       $ —        $ 464.9   

Marine operating revenue

     —          86.9        —           —          86.9   

Asset remarketing income

     23.2        —          13.4         —          36.6   

Other income

     37.3        —          1.3         0.5        39.1   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Revenues

     490.8        89.0        47.2         0.5        627.5   

Share of affiliates’ earnings

     (16.5     —          20.7         —          4.2   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total Gross Income

     474.3        89.0        67.9         0.5        631.7   

Ownership Costs

           

Depreciation

     100.7        3.9        10.6         —          115.2   

Interest expense, net

     64.6        3.7        13.7         2.2        84.2   

Operating lease expense

     62.7        1.2        0.2         (0.2     63.9   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total Ownership Costs

     228.0        8.8        24.5         2.0        263.3   

Other Costs and Expenses

           

Maintenance expense

     121.2        7.1        —           —          128.3   

Marine operating expense

     —          57.3        —           —          57.3   

Other

     16.9        (0.3     6.8         0.1        23.5   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total Other Costs and Expenses

     138.1        64.1        6.8         0.1        209.1   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Segment Profit (Loss)

   $ 108.2      $ 16.1      $ 36.6       $ (1.6     159.3   
  

 

 

   

 

 

   

 

 

    

 

 

   

Selling, general and administrative

              77.0   
           

 

 

 

Income before Income Taxes

              82.3   

Income Taxes

              28.5   
           

 

 

 

Net Income

            $ 53.8   
           

 

 

 
Selected Data:            

Investment Volume

   $ 320.6      $ 11.4      $ 56.5       $ 3.3      $ 391.8   

Asset Remarketing Income:

           

Disposition Gains on Owned Assets

     21.8        —          9.3         —          31.1   

Residual Sharing Income

     1.4        —          4.1         —          5.5   
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total Asset Remarketing Income

   $ 23.2      $ —        $ 13.4       $ —        $ 36.6   

Scrapping Gains (a)

   $ 11.1      $ —        $ —         $ —        $ 11.1   

 

(a) Included in Other income


Page 10

 

GATX CORPORATION AND SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Three Months Ended June 30, 2011

(In Millions)

 

     Rail      ASC      Portfolio
Management
     Other     GATX
Consolidated
 

Gross Income

             

Lease income

   $ 211.3       $ 1.1       $ 14.8       $ —        $ 227.2   

Marine operating revenue

     —           56.6         —           —          56.6   

Asset remarketing income

     7.1         —           1.1         —          8.2   

Other income

     19.3         1.1         1.7         0.5        22.6   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Revenues

     237.7         58.8         17.6         0.5        314.6   

Share of affiliates’ earnings

     8.3         —           6.7         —          15.0   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Gross Income

     246.0         58.8         24.3         0.5        329.6   

Ownership Costs

             

Depreciation

     48.9         3.9         4.5         —          57.3   

Interest expense, net

     32.6         2.0         7.3         1.2        43.1   

Operating lease expense

     33.0         —           0.4         (0.1     33.3   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Ownership Costs

     114.5         5.9         12.2         1.1        133.7   

Other Costs and Expenses

             

Maintenance expense

     65.7         5.1         —           —          70.8   

Marine operating expense

     —           39.2         —           —          39.2   

Other

     9.1         —           3.3         0.4        12.8   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Other Costs and Expenses

     74.8         44.3         3.3         0.4        122.8   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Segment Profit (Loss)

   $ 56.7       $ 8.6       $ 8.8       $ (1.0     73.1   
  

 

 

    

 

 

    

 

 

    

 

 

   

Selling, general and administrative

                37.4   
             

 

 

 

Income before Income Taxes

                35.7   

Income Taxes

                9.3   
             

 

 

 

Net Income

              $ 26.4   
             

 

 

 
Selected Data:              

Investment Volume

   $ 102.4       $ 7.4       $ 52.9       $ 1.2      $ 163.9   

Asset Remarketing Income:

             

Disposition Gains on Owned Assets

     6.6         —           —           —          6.6   

Residual Sharing Income

     0.5         —           1.1         —          1.6   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Asset Remarketing Income

   $ 7.1       $ —         $ 1.1       $ —        $ 8.2   

Scrapping Gains (a)

   $ 6.4       $ —         $ —         $ —        $ 6.4   

 

(a) Included in Other income


Page 11

 

GATX CORPORATION AND SUBSIDIARIES

SEGMENT DATA (UNAUDITED)

Six Months Ended June 30, 2011

(In Millions)

 

                   Portfolio            GATX  
     Rail      ASC      Management      Other     Consolidated  

Gross Income

             

Lease income

   $ 420.7       $ 2.1       $ 29.2       $ —        $ 452.0   

Marine operating revenue

     —           67.7         —           —          67.7   

Asset remarketing income

     14.7         —           2.4         —          17.1   

Other income

     39.1         1.1         1.9         0.7        42.8   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Revenues

     474.5         70.9         33.5         0.7        579.6   

Share of affiliates’ earnings

     15.4         —           16.7         —          32.1   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Gross Income

     489.9         70.9         50.2         0.7        611.7   

Ownership Costs

             

Depreciation

     96.8         3.9         8.9         —          109.6   

Interest expense, net

     65.3         4.0         14.4         2.3        86.0   

Operating lease expense

     67.4         —           0.7         (0.2     67.9   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Ownership Costs

     229.5         7.9         24.0         2.1        263.5   

Other Costs and Expenses

             

Maintenance expense

     134.6         5.5         —           —          140.1   

Marine operating expense

     —           48.1         —           —          48.1   

Other

     17.5         —           6.7         0.5        24.7   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Other Costs and Expenses

     152.1         53.6         6.7         0.5        212.9   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Segment Profit (Loss)

   $ 108.3       $ 9.4       $ 19.5       $ (1.9     135.3   
  

 

 

    

 

 

    

 

 

    

 

 

   

Selling, general and administrative

                73.8   
             

 

 

 

Income before Income Taxes

                61.5   

Income Taxes

                15.2   
             

 

 

 

Net Income

              $ 46.3   
             

 

 

 

Selected Data:

             

Investment Volume

   $ 156.3       $ 12.6       $ 89.3       $ 1.9      $ 260.1   

Asset Remarketing Income:

             

Disposition Gains on Owned Assets

     14.2         —           0.2         —          14.4   

Residual Sharing Income

     0.5         —           2.2         —          2.7   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Asset Remarketing Income

   $ 14.7       $ —         $ 2.4       $ —        $ 17.1   

Scrapping Gains (a)

   $ 12.9       $ —         $ —         $ —        $ 12.9   

 

(a) Included in Other income


Page 12

 

GATX CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION (UNAUDITED)

(In Millions, Except Per Share Data)

 

Tax Adjustments and Other Items impact on Net Income:

                         
     Three Months Ended      Six Months Ended  
     June 30      June 30  
     2012     2011      2012     2011  

Tax Adjustments (a)

   $ (0.7   $ —         $ (0.7   $ —     

Interest rate swaps at AAE (b)

     (14.6     6.2         (16.8     12.6   
  

 

 

   

 

 

    

 

 

   

 

 

 
   $ (15.3   $ 6.2       $ (17.5   $ 12.6   
  

 

 

   

 

 

    

 

 

   

 

 

 

Tax Adjustments and Other Items impact on Diluted Earnings Per Share:

         
     Three Months Ended      Six Months Ended  
     June 30      June 30  
     2012     2011      2012     2011  

Tax Adjustments (a)

   $ (0.01   $ —         $ (0.01   $ —     

Interest rate swaps at AAE (b)

     (0.30     0.13         (0.35     0.27   
  

 

 

   

 

 

    

 

 

   

 

 

 
   $ (0.31   $ 0.13       $ (0.36   $ 0.27   
  

 

 

   

 

 

    

 

 

   

 

 

 

 

Management believes that highlighting these items allows the reader to better analyze ongoing operating results and trends.

 

(a) Deferred tax adjustment due to an enacted rate increase in Ontario, Canada.
(b) Realized and unrealized gains (losses) recognized in connection with certain interest rate swaps at GATX’s European rail affiliate, AAE Cargo AG.


Page 13

 

GATX CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION (UNAUDITED)

(In Millions, Except Leverage)

(Continued)

 

     6/30/2011      9/30/2011      12/31/2011     3/31/2012      6/30/2012  
Assets by Segment (includes off-balance sheet assets)              

Rail

   $ 5,284.9       $ 5,244.4       $ 5,270.5      $ 5,270.6       $ 5,296.7   

ASC

     286.1         286.1         275.9        274.2         324.6   

Portfolio Management

     794.2         855.9         828.3        808.6         802.5   

Other

     83.9         86.8         86.3        81.1         79.2   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total Assets, Excluding Cash

   $ 6,449.1       $ 6,473.2       $ 6,461.0      $ 6,434.5       $ 6,503.0   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Capital Structure

             

Commercial Paper and Bank Credit Facilities,

             

Net of Unrestricted Cash

   $ 52.0       $ 9.2       $ (219.8   $ 35.0       $ (127.2

On Balance Sheet Recourse Debt

     2,990.1         3,145.6         3,354.8        3,141.4         3,328.2   

On Balance Sheet Nonrecourse Debt

     189.8         157.8         149.4        146.3         136.5   

Off Balance Sheet Recourse Debt

     728.5         705.6         714.2        646.3         678.9   

Off Balance Sheet Nonrecourse Debt

     180.7         176.7         172.9        168.2         163.9   

Capital Lease Obligations

     15.4         14.3         14.3        13.2         12.5   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total Borrowings, Net of Unrestricted Cash

   $ 4,156.5       $ 4,209.2       $ 4,185.8      $ 4,150.4       $ 4,192.8   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total Recourse Debt (a)

   $ 3,786.0       $ 3,874.7       $ 3,863.5      $ 3,835.9       $ 3,892.4   

Shareholders’ Equity

   $ 1,191.1       $ 1,155.3       $ 1,127.3      $ 1,175.5       $ 1,170.7   

Recourse Leverage (b)

     3.2         3.4         3.4        3.3         3.3   

 

(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

 

Reconciliation of Total Assets to Total Assets (including off-balance sheet assets), Excluding Cash:   

Total Assets

   $ 5,642.5      $ 5,756.5      $ 5,857.5      $ 5,792.9      $ 5,917.9   

Less: Cash

     (102.6     (165.6     (283.6     (172.9     (257.7

Add Off-Balance Sheet Assets:

          

Rail

     906.2        879.5        884.5        813.7        819.5   

ASC

     —          —          —          —          23.3   

Portfolio Management

     3.0        2.8        2.6        0.8        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Assets, Excluding Cash

   $ 6,449.1      $ 6,473.2      $ 6,461.0      $ 6,434.5      $ 6,503.0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


Page 14

 

GATX CORPORATION AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION (UNAUDITED)

(Continued)

 

     6/30/2011     9/30/2011     12/31/2011     3/31/2012     6/30/2012  

North American Rail Statistics (wholly-owned fleet)

          

Lease Price Index (LPI) (a)

          

Average Renewal Lease Rate Change

     4.4     9.6     13.2     19.2     23.9

Average Renewal Term (months)

     41        49        48        55        59   

Fleet Rollforward

          

Beginning Balance

     109,780        108,764        109,091        109,070        109,116   

Cars Added

     657        1,069        972        1,223        1,385   

Cars Scrapped

     (1,102     (602     (696     (544     (591

Cars Sold

     (571     (140     (297     (633     (723

Ending Balance

     108,764        109,091        109,070        109,116        109,187   

Utilization

     98.2     98.2     98.2     98.5     98.3

Average active railcars

     106,935        106,984        107,121        107,328        107,452   

GATX Rail Europe Statistics (wholly-owned fleet)

          

Fleet Rollforward

          

Beginning Balance

     20,524        20,675        20,828        20,927        21,064   

Cars Added

     164        200        368        304        273   

Cars Scrapped/Sold

     (13     (47     (269     (167     (128

Ending Balance

     20,675        20,828        20,927        21,064        21,209   

Utilization

     95.7     96.0     97.1     96.7     96.3

Average active railcars

     19,728        19,881        20,112        20,356        20,386   

Rail Industry Statistics

          

Manufacturing Capacity Utilization Index (b)

     76.3     77.7     78.3     78.4     78.9

Year-over-year Change in U.S. Carloadings (total, excl. intermodal) (c)

     2.7     1.8     2.2     (2.5 )%      (2.9 )% 

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

     5.1     4.2     3.4     (1.3 )%      (1.2 )% 

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

     6.3     8.0     11.1     28.4     38.2

Production Backlog at Railcar Manufacturers (d)

     57,308        65,044        64,575        60,191        n/a (e) 

American Steamship Company (ASC) Statistics

          

Total Net Tons Carried (millions)

     7.8        9.7        9.7        1.3        9.2   

 

 

(a) LPI is an internally generated business indicator that measures general lease rate pricing on renewals within GATX’s 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 average renewal lease rate change reflects the percentage change between the weighted average renewal lease rate and the weighted average expiring lease rate for railcars in the LPI. The average renewal term reflects the weighted average renewal lease term in months for railcars in the LPI.
(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) Not available, not published by RSI as of the date of this release.