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GATX Corporation Reports 2018 Third-Quarter Results
2018 year-to-date results include a net negative impact of
“Rail International is performing well. Utilization at GATX Rail Europe increased to 98.4%, as we continue to see gradual improvement across the markets we serve.
Mr. Kenney concluded, “Based on year-to-date performance and our outlook for the remainder of the year, we continue to expect our 2018 full-year earnings to be in the range of
RAIL
At
Fleet utilization was 99.2% at the end of the third quarter, compared to 98.9% at the end of the prior quarter and 98.5% at the end of the third quarter of 2017. During the third quarter of 2018, 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 a negative 11.5%. This compares to an LPI of negative 16.1% in the prior quarter and a negative 27.0% in the third quarter of 2017. The average lease renewal term for railcars included in the LPI during the third quarter was 33 months, compared to 41 months in the prior quarter and 35 months in the third quarter of 2017. Rail North America’s investment volume during the third quarter was
Additional fleet statistics, including information about 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
AMERICAN STEAMSHIP COMPANY
COMPANY DESCRIPTION
TELECONFERENCE INFORMATION
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FORWARD-LOOKING STATEMENTS
Statements in this Earnings Release not based on historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and, accordingly, involve known and unknown risks and uncertainties that are difficult to predict and could cause our actual results, performance, or achievements to differ materially from those discussed. These include statements as to our future expectations, beliefs, plans, strategies, objectives, events, conditions, financial performance, prospects, or future events. In some cases, forward-looking statements can be identified by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” "outlook," “continue,” “likely,” “will,” “would”, and similar words and phrases. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the date they are made, and are not guarantees of future performance. We do not undertake any obligation to publicly update or revise these forward-looking statements.
The following factors, in addition to those discussed in our other filings with the
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FOR FURTHER INFORMATION CONTACT:
Director, Investor Relations
312-621-6409
jennifer.mcmanus@gatx.com
Investor, corporate, financial, historical financial, and news release information may be found at www.gatx.com.
(10/23/18)
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In millions, except per share data)
Three Months Ended September 30 |
Nine Months Ended September 30 |
||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues | |||||||||||||||
Lease revenue | $ | 271.9 | $ | 276.6 | $ | 816.1 | $ | 823.4 | |||||||
Marine operating revenue | 60.8 | 62.9 | 130.8 | 135.0 | |||||||||||
Other revenue | 17.0 | 20.1 | 57.6 | 65.7 | |||||||||||
Total Revenues | 349.7 | 359.6 | 1,004.5 | 1,024.1 | |||||||||||
Expenses | |||||||||||||||
Maintenance expense | 77.5 | 84.9 | 240.7 | 247.7 | |||||||||||
Marine operating expense | 39.4 | 38.9 | 89.5 | 89.8 | |||||||||||
Depreciation expense | 81.6 | 78.6 | 240.1 | 227.9 | |||||||||||
Operating lease expense | 11.8 | 15.8 | 37.5 | 46.8 | |||||||||||
Other operating expense | 8.5 | 8.5 | 26.2 | 25.9 | |||||||||||
Selling, general and administrative expense | 46.5 | 42.5 | 137.6 | 127.8 | |||||||||||
Total Expenses | 265.3 | 269.2 | 771.6 | 765.9 | |||||||||||
Other Income (Expense) | |||||||||||||||
Net gain on asset dispositions | 10.3 | 9.4 | 72.5 | 56.3 | |||||||||||
Interest expense, net | (42.6 | ) | (40.2 | ) | (124.7 | ) | (119.4 | ) | |||||||
Other expense | (3.8 | ) | (2.4 | ) | (14.9 | ) | (5.5 | ) | |||||||
Income before Income Taxes and Share of Affiliates’ Earnings | 48.3 | 57.2 | 165.8 | 189.6 | |||||||||||
Income taxes | (13.1 | ) | (20.4 | ) | (42.8 | ) | (60.3 | ) | |||||||
Share of affiliates’ earnings, net of taxes | 11.8 | 12.2 | 39.1 | 30.6 | |||||||||||
Net Income | $ | 47.0 | $ | 49.0 | $ | 162.1 | $ | 159.9 | |||||||
Share Data | |||||||||||||||
Basic earnings per share | $ | 1.25 | $ | 1.27 | $ | 4.29 | $ | 4.10 | |||||||
Average number of common shares | 37.7 | 38.6 | 37.8 | 39.0 | |||||||||||
Diluted earnings per share | $ | 1.22 | $ | 1.25 | $ | 4.21 | $ | 4.04 | |||||||
Average number of common shares and common share equivalents | 38.5 | 39.2 | 38.5 | 39.6 | |||||||||||
Dividends declared per common share | $ | 0.44 | $ | 0.42 | $ | 1.32 | $ | 1.26 | |||||||
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions)
September 30 | December 31 | |||||||
2018 | 2017 | |||||||
Assets | ||||||||
Cash and Cash Equivalents | $ | 254.5 | $ | 296.5 | ||||
Restricted Cash | 4.1 | 3.2 | ||||||
Receivables | ||||||||
Rent and other receivables | 85.2 | 83.4 | ||||||
Finance leases | 129.0 | 136.1 | ||||||
Less: allowance for losses | (6.5 | ) | (6.4 | ) | ||||
207.7 | 213.1 | |||||||
Operating Assets and Facilities | 9,262.9 | 9,045.4 | ||||||
Less: allowance for depreciation | (2,965.0 | ) | (2,853.3 | ) | ||||
6,297.9 | 6,192.1 | |||||||
Investments in Affiliated Companies | 478.5 | 441.0 | ||||||
Goodwill | 83.6 | 85.6 | ||||||
Other Assets | 191.1 | 190.9 | ||||||
Total Assets | $ | 7,517.4 | $ | 7,422.4 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Accounts Payable and Accrued Expenses | $ | 152.8 | $ | 154.3 | ||||
Debt | ||||||||
Commercial paper and borrowings under bank credit facilities | — | 4.3 | ||||||
Recourse | 4,397.3 | 4,371.7 | ||||||
Capital lease obligations | 11.6 | 12.5 | ||||||
4,408.9 | 4,388.5 | |||||||
Deferred Income Taxes | 890.7 | 853.7 | ||||||
Other Liabilities | 227.0 | 233.2 | ||||||
Total Liabilities | 5,679.4 | 5,629.7 | ||||||
Total Shareholders’ Equity | 1,838.0 | 1,792.7 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 7,517.4 | $ | 7,422.4 | ||||
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended
(In millions)
Rail N.A. | Rail Int’l | Portfolio Management |
ASC | Other | GATX Consolidated |
||||||||||||||||||
Revenues | |||||||||||||||||||||||
Lease revenue | $ | 218.2 | $ | 52.3 | $ | 0.3 | $ | 1.1 | $ | — | $ | 271.9 | |||||||||||
Marine operating revenue | — | — | 3.1 | 57.7 | — | 60.8 | |||||||||||||||||
Other revenue | 15.2 | 1.8 | — | — | — | 17.0 | |||||||||||||||||
Total Revenues | 233.4 | 54.1 | 3.4 | 58.8 | — | 349.7 | |||||||||||||||||
Expenses | |||||||||||||||||||||||
Maintenance expense | 60.6 | 10.1 | — | 6.8 | — | 77.5 | |||||||||||||||||
Marine operating expense | — | — | 4.4 | 35.0 | — | 39.4 | |||||||||||||||||
Depreciation expense | 62.5 | 13.8 | 1.8 | 3.5 | — | 81.6 | |||||||||||||||||
Operating lease expense | 11.8 | — | — | — | — | 11.8 | |||||||||||||||||
Other operating expense | 7.1 | 1.3 | 0.1 | — | — | 8.5 | |||||||||||||||||
Total Expenses | 142.0 | 25.2 | 6.3 | 45.3 | — | 218.8 | |||||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||
Net gain on asset dispositions | 9.6 | 0.5 | 0.2 | — | — | 10.3 | |||||||||||||||||
Interest (expense) income, net | (31.8 | ) | (8.9 | ) | (2.6 | ) | (1.5 | ) | 2.2 | (42.6 | ) | ||||||||||||
Other (expense) income | (1.2 | ) | 0.2 | — | (0.1 | ) | (2.7 | ) | (3.8 | ) | |||||||||||||
Share of affiliates’ pre-tax income | 0.2 | — | 14.3 | — | — | 14.5 | |||||||||||||||||
Segment profit (loss) | $ | 68.2 | $ | 20.7 | $ | 9.0 | $ | 11.9 | $ | (0.5 | ) | $ | 109.3 | ||||||||||
Less: | |||||||||||||||||||||||
Selling, general and administrative expense | 46.5 | ||||||||||||||||||||||
Income taxes (includes $2.7 related to affiliates’ earnings) | 15.8 | ||||||||||||||||||||||
Net income | $ | 47.0 | |||||||||||||||||||||
Selected Data: | |||||||||||||||||||||||
Investment volume | $ | 129.1 | $ | 40.4 | $ | — | $ | — | $ | 0.2 | $ | 169.7 | |||||||||||
Net Gain on Asset Dispositions | |||||||||||||||||||||||
Asset Remarketing Income: | |||||||||||||||||||||||
Disposition gains on owned assets | $ | 6.7 | $ | — | — | $ | — | $ | — | $ | 6.7 | ||||||||||||
Residual sharing income | 0.5 | — | 0.2 | — | — | 0.7 | |||||||||||||||||
Non-remarketing disposition gains (1) | 2.4 | 0.5 | — | — | — | 2.9 | |||||||||||||||||
$ | 9.6 | $ | 0.5 | 0.2 | $ | — | $ | — | $ | 10.3 | |||||||||||||
(1) Includes scrapping gains.
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended
(In millions)
Rail N.A. | Rail Int’l | Portfolio Management |
ASC | Other | GATX Consolidated |
||||||||||||||||||
Revenues | |||||||||||||||||||||||
Lease revenue | $ | 224.5 | $ | 50.3 | $ | 0.7 | $ | 1.1 | $ | — | $ | 276.6 | |||||||||||
Marine operating revenue | — | — | 3.8 | 59.1 | — | 62.9 | |||||||||||||||||
Other revenue | 17.9 | 2.0 | 0.2 | — | — | 20.1 | |||||||||||||||||
Total Revenues | 242.4 | 52.3 | 4.7 | 60.2 | — | 359.6 | |||||||||||||||||
Expenses | |||||||||||||||||||||||
Maintenance expense | 66.1 | 11.1 | — | 7.7 | — | 84.9 | |||||||||||||||||
Marine operating expense | — | — | 4.2 | 34.7 | — | 38.9 | |||||||||||||||||
Depreciation expense | 60.1 | 12.8 | 1.7 | 4.0 | — | 78.6 | |||||||||||||||||
Operating lease expense | 15.5 | — | — | 0.3 | — | 15.8 | |||||||||||||||||
Other operating expense | 7.3 | 1.1 | 0.1 | — | — | 8.5 | |||||||||||||||||
Total Expenses | 149.0 | 25.0 | 6.0 | 46.7 | — | 226.7 | |||||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||
Net gain on asset dispositions | 8.1 | 1.0 | 0.3 | — | — | 9.4 | |||||||||||||||||
Interest (expense) income, net | (30.5 | ) | (8.5 | ) | (2.2 | ) | (1.4 | ) | 2.4 | (40.2 | ) | ||||||||||||
Other (expense) income | (0.9 | ) | 0.3 | — | — | (1.8 | ) | (2.4 | ) | ||||||||||||||
Share of affiliates’ pre-tax income | 0.1 | — | 16.0 | — | — | 16.1 | |||||||||||||||||
Segment profit | $ | 70.2 | $ | 20.1 | $ | 12.8 | $ | 12.1 | $ | 0.6 | $ | 115.8 | |||||||||||
Less: | |||||||||||||||||||||||
Selling, general and administrative expense | 42.5 | ||||||||||||||||||||||
Income taxes (includes $3.9 related to affiliates’ earnings) | 24.3 | ||||||||||||||||||||||
Net income | $ | 49.0 | |||||||||||||||||||||
Selected Data: | |||||||||||||||||||||||
Investment volume | $ | 103.3 | $ | 22.9 | $ | 36.6 | $ | 0.8 | $ | 0.1 | $ | 163.7 | |||||||||||
Net Gain on Asset Dispositions | |||||||||||||||||||||||
Asset Remarketing Income: | |||||||||||||||||||||||
Disposition gains on owned assets | $ | 7.5 | $ | 0.1 | $ | — | $ | — | $ | — | $ | 7.6 | |||||||||||
Residual sharing income | 0.2 | — | 0.3 | — | — | 0.5 | |||||||||||||||||
Non-remarketing disposition gains (1) | 0.4 | 0.9 | — | — | — | 1.3 | |||||||||||||||||
$ | 8.1 | $ | 1.0 | $ | 0.3 | $ | — | $ | — | $ | 9.4 | ||||||||||||
(1) Includes scrapping gains.
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Nine Months Ended
(In millions)
Rail N.A. | Rail Int’l | Portfolio Management |
ASC | Other | GATX Consolidated |
||||||||||||||||||
Revenues | |||||||||||||||||||||||
Lease revenue | $ | 655.3 | $ | 156.9 | $ | 0.8 | $ | 3.1 | $ | — | $ | 816.1 | |||||||||||
Marine operating revenue | — | — | 11.0 | 119.8 | — | 130.8 | |||||||||||||||||
Other revenue | 51.1 | 6.0 | 0.5 | — | — | 57.6 | |||||||||||||||||
Total Revenues | 706.4 | 162.9 | 12.3 | 122.9 | — | 1,004.5 | |||||||||||||||||
Expenses | |||||||||||||||||||||||
Maintenance expense | 192.8 | 33.8 | — | 14.1 | — | 240.7 | |||||||||||||||||
Marine operating expense | — | — | 12.9 | 76.6 | — | 89.5 | |||||||||||||||||
Depreciation expense | 185.8 | 41.7 | 5.5 | 7.1 | — | 240.1 | |||||||||||||||||
Operating lease expense | 37.5 | — | — | — | — | 37.5 | |||||||||||||||||
Other operating expense | 21.5 | 4.3 | 0.4 | — | — | 26.2 | |||||||||||||||||
Total Expenses | 437.6 | 79.8 | 18.8 | 97.8 | — | 634.0 | |||||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||
Net gain on asset dispositions | 68.4 | 3.2 | 0.8 | 0.1 | — | 72.5 | |||||||||||||||||
Interest (expense) income, net | (93.1 | ) | (26.5 | ) | (7.6 | ) | (4.3 | ) | 6.8 | (124.7 | ) | ||||||||||||
Other expense | (3.3 | ) | (7.3 | ) | — | (0.2 | ) | (4.1 | ) | (14.9 | ) | ||||||||||||
Share of affiliates’ pre-tax income | 0.5 | — | 47.6 | — | — | 48.1 | |||||||||||||||||
Segment profit | $ | 241.3 | $ | 52.5 | $ | 34.3 | $ | 20.7 | $ | 2.7 | $ | 351.5 | |||||||||||
Less: | |||||||||||||||||||||||
Selling, general and administrative expense | 137.6 | ||||||||||||||||||||||
Income taxes (includes $9.0 related to affiliates’ earnings) | 51.8 | ||||||||||||||||||||||
Net income | $ | 162.1 | |||||||||||||||||||||
Selected Data: | |||||||||||||||||||||||
Investment volume | $ | 414.7 | $ | 104.5 | $ | — | $ | 15.8 | $ | 1.7 | $ | 536.7 | |||||||||||
Net Gain on Asset Dispositions | |||||||||||||||||||||||
Asset Remarketing Income: | |||||||||||||||||||||||
Disposition gains on owned assets | $ | 60.8 | $ | — | $ | — | $ | 0.1 | $ | — | $ | 60.9 | |||||||||||
Residual sharing income | 0.9 | — | 0.8 | — | — | 1.7 | |||||||||||||||||
Non-remarketing disposition gains (1) | 6.7 | 3.2 | — | — | — | 9.9 | |||||||||||||||||
$ | 68.4 | $ | 3.2 | $ | 0.8 | $ | 0.1 | $ | — | $ | 72.5 | ||||||||||||
(1) Includes scrapping gains.
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Nine Months Ended
(In millions)
Rail N.A. | Rail Int’l | Portfolio Management |
ASC | Other | GATX Consolidated |
||||||||||||||||||
Revenues | |||||||||||||||||||||||
Lease revenue | $ | 677.4 | $ | 139.8 | $ | 3.1 | $ | 3.1 | $ | — | $ | 823.4 | |||||||||||
Marine operating revenue | — | — | 21.8 | 113.2 | — | 135.0 | |||||||||||||||||
Other revenue | 60.0 | 4.7 | 1.0 | — | — | 65.7 | |||||||||||||||||
Total Revenues | 737.4 | 144.5 | 25.9 | 116.3 | — | 1,024.1 | |||||||||||||||||
Expenses | |||||||||||||||||||||||
Maintenance expense | 202.3 | 30.8 | — | 14.6 | — | 247.7 | |||||||||||||||||
Marine operating expense | — | — | 19.2 | 70.6 | — | 89.8 | |||||||||||||||||
Depreciation expense | 178.8 | 35.8 | 5.2 | 8.1 | — | 227.9 | |||||||||||||||||
Operating lease expense | 45.3 | — | — | 1.5 | — | 46.8 | |||||||||||||||||
Other operating expense | 21.7 | 3.5 | 0.7 | — | — | 25.9 | |||||||||||||||||
Total Expenses | 448.1 | 70.1 | 25.1 | 94.8 | — | 638.1 | |||||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||
Net gain on asset dispositions | 42.6 | 2.6 | 11.1 | — | — | 56.3 | |||||||||||||||||
Interest (expense) income, net | (90.1 | ) | (24.5 | ) | (6.8 | ) | (3.9 | ) | 5.9 | (119.4 | ) | ||||||||||||
Other (expense) income | (4.1 | ) | (2.3 | ) | 2.3 | 0.8 | (2.2 | ) | (5.5 | ) | |||||||||||||
Share of affiliates’ pre-tax income (loss) | 0.4 | (0.1 | ) | 39.9 | — | — | 40.2 | ||||||||||||||||
Segment profit | $ | 238.1 | $ | 50.1 | $ | 47.3 | $ | 18.4 | $ | 3.7 | $ | 357.6 | |||||||||||
Less: | |||||||||||||||||||||||
Selling, general and administrative expense | 127.8 | ||||||||||||||||||||||
Income taxes (includes $9.6 related to affiliates’ earnings) | 69.9 | ||||||||||||||||||||||
Net income | $ | 159.9 | |||||||||||||||||||||
Selected Data: | |||||||||||||||||||||||
Investment volume | $ | 333.7 | $ | 74.7 | $ | 36.6 | $ | 13.6 | $ | 0.4 | $ | 459.0 | |||||||||||
Net Gain on Asset Dispositions | |||||||||||||||||||||||
Asset Remarketing Income: | |||||||||||||||||||||||
Disposition gains on owned assets | $ | 39.5 | $ | 0.1 | $ | 1.8 | $ | — | $ | — | $ | 41.4 | |||||||||||
Residual sharing income | 0.5 | — | 9.3 | — | — | 9.8 | |||||||||||||||||
Non-remarketing disposition gains (1) | 4.5 | 2.5 | — | — | — | 7.0 | |||||||||||||||||
Asset impairments | (1.9 | ) | — | — | — | — | (1.9 | ) | |||||||||||||||
$ | 42.6 | $ | 2.6 | $ | 11.1 | $ | — | $ | — | $ | 56.3 | ||||||||||||
(1) Includes scrapping gains.
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 September 30 |
Nine Months Ended September 30 |
||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (GAAP) | $ | 47.0 | $ | 49.0 | $ | 162.1 | $ | 159.9 | |||||||
Adjustments attributable to consolidated pre-tax income: | |||||||||||||||
Costs attributable to the closure of a maintenance facility at Rail International | — | — | 8.6 | — | |||||||||||
Net gain on wholly owned Portfolio Management marine investments | — | — | — | (1.8 | ) | ||||||||||
Total adjustments attributable to consolidated pre-tax income | $ | — | $ | — | $ | 8.6 | $ | (1.8 | ) | ||||||
Income taxes thereon, based on applicable effective tax rate | $ | — | $ | — | $ | (2.8 | ) | $ | 0.7 | ||||||
Net income, excluding tax adjustments and other items (non-GAAP) | $ | 47.0 | $ | 49.0 | $ | 167.9 | $ | 158.8 | |||||||
Impact of Tax Adjustments and Other Items on Diluted Earnings per Share*
Three Months Ended September 30 |
Nine Months Ended September 30 |
||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Diluted earnings per share (GAAP) | $ | 1.22 | $ | 1.25 | $ | 4.21 | $ | 4.04 | |||||||
Diluted earnings per share, excluding tax adjustments and other items (non-GAAP) | $ | 1.22 | $ | 1.25 | $ | 4.36 | $ | 4.01 | |||||||
(*) In addition to financial results reported in accordance with GAAP, we provide certain non-GAAP financial information. 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.
GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(In millions, except leverage)
9/30/2017 | 12/31/2017 | 3/31/2018 | 6/30/2018 | 9/30/2018 | ||||||||||||||||
Assets by Segment, as adjusted (non-GAAP)* | ||||||||||||||||||||
Rail North America | $ | 5,296.3 | $ | 5,334.0 | $ | 5,362.2 | $ | 5,409.0 | $ | 5,418.2 | ||||||||||
Rail International | 1,249.4 | 1,291.5 | 1,329.0 | 1,266.6 | 1,294.5 | |||||||||||||||
Portfolio Management | 614.0 | 580.6 | 593.1 | 605.8 | 614.6 | |||||||||||||||
ASC | 310.2 | 286.6 | 298.2 | 313.6 | 303.4 | |||||||||||||||
Other | 60.6 | 65.7 | 59.8 | 61.1 | 60.7 | |||||||||||||||
Total Assets, excluding cash, as adjusted (non-GAAP) | $ | 7,530.5 | $ | 7,558.4 | $ | 7,642.3 | $ | 7,656.1 | $ | 7,691.4 | ||||||||||
Debt, Net of Unrestricted Cash* | ||||||||||||||||||||
Unrestricted cash | $ | (199.2 | ) | $ | (296.5 | ) | $ | (233.1 | ) | $ | (237.4 | ) | $ | (254.5 | ) | |||||
Commercial paper and bank credit facilities | 15.7 | 4.3 | 4.4 | 4.3 | — | |||||||||||||||
Recourse debt | 4,266.7 | 4,371.7 | 4,359.5 | 4,397.9 | 4,397.3 | |||||||||||||||
Capital lease obligations | 12.8 | 12.5 | 12.2 | 11.9 | 11.6 | |||||||||||||||
Total debt, net of unrestricted cash (GAAP) | 4,096.0 | 4,092.0 | 4,143.0 | 4,176.7 | 4,154.4 | |||||||||||||||
Off-balance sheet recourse debt | 471.5 | 435.7 | 411.7 | 401.7 | 432.6 | |||||||||||||||
Total recourse debt, net of unrestricted cash, as adjusted (non-GAAP) (1) | $ | 4,567.5 | $ | 4,527.7 | $ | 4,554.7 | $ | 4,578.4 | $ | 4,587.0 | ||||||||||
Shareholders’ Equity (2) | $ | 1,470.2 | $ | 1,792.7 | $ | 1,839.7 | $ | 1,817.6 | $ | 1,838.0 | ||||||||||
Recourse Leverage (3) | 3.1 | 2.5 | 2.5 | 2.5 | 2.5 | |||||||||||||||
_________
(1) Includes on- and off-balance sheet recourse debt; capital lease obligations; commercial paper and bank credit facilities, net of unrestricted cash.
(2) Balances for 12/31/2017, 3/31/2018,
(3) Calculated as total recourse debt / shareholder’s equity.
Reconciliation of Total Assets, excluding cash (GAAP) to Total Assets, excluding cash, as adjusted (non-GAAP) | ||||||||||||||||||||
Total Assets | $ | 7,261.9 | $ | 7,422.4 | $ | 7,468.0 | $ | 7,495.5 | $ | 7,517.4 | ||||||||||
Less: cash | (202.9 | ) | (299.7 | ) | (237.4 | ) | (241.1 | ) | (258.6 | ) | ||||||||||
Total Assets, excluding cash (GAAP) | 7,059.0 | 7,122.7 | 7,230.6 | 7,254.4 | 7,258.8 | |||||||||||||||
Add off-balance sheet assets: | ||||||||||||||||||||
Rail North America | 471.3 | 435.7 | 411.7 | 401.7 | 432.6 | |||||||||||||||
ASC | 0.2 | — | — | — | — | |||||||||||||||
Total off-balance sheet assets | 471.5 | 435.7 | 411.7 | 401.7 | 432.6 | |||||||||||||||
Total Assets, excluding cash, as adjusted (non-GAAP) | $ | 7,530.5 | $ | 7,558.4 | $ | 7,642.3 | $ | 7,656.1 | $ | 7,691.4 | ||||||||||
(*) We include total on- and off-balance sheet assets because certain operating assets are accounted for as operating leases and are not recorded on the balance sheet. We include these leased-in assets in our calculation of total assets (as adjusted) because we believe it gives investors a more comprehensive representation of the magnitude of the assets we operate and that drive our financial performance. In addition, this calculation of total assets (as adjusted) provides consistency with other non-financial information we disclose. We also provide information regarding our leverage ratios, which are expressed as a ratio of debt (including off-balance sheet debt) to equity. The off-balance sheet debt amount in this calculation is the equivalent of the off-balance sheet asset amount. We believe reporting this corresponding off-balance sheet debt amount provides investors and other users of our financial statements with a more comprehensive representation of our debt obligations, leverage, and capital structure.
GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(Continued)
9/30/2017 | 12/31/2017 | 3/31/2018 | 6/30/2018 | 9/30/2018 | ||||||||||
Rail North America Statistics | ||||||||||||||
Lease Price Index (LPI) (1) | ||||||||||||||
Average renewal lease rate change | (27.0 | )% | (32.4 | )% | (11.6 | )% | (16.1 | )% | (11.5 | )% | ||||
Average renewal term (months) | 35 | 36 | 34 | 41 | 33 | |||||||||
Fleet Rollforward (2) | ||||||||||||||
Beginning balance | 104,007 | 103,692 | 103,730 | 102,597 | 102,890 | |||||||||
Cars added | 637 | 786 | 1,226 | 1,231 | 1,381 | |||||||||
Cars scrapped | (854 | ) | (600 | ) | (673 | ) | (720 | ) | (431 | ) | ||||
Cars sold | (98 | ) | (148 | ) | (1,686 | ) | (218 | ) | (420 | ) | ||||
Ending balance | 103,692 | 103,730 | 102,597 | 102,890 | 103,420 | |||||||||
Utilization | 98.5 | % | 98.2 | % | 98.2 | % | 98.9 | % | 99.2 | % | ||||
Average active railcars | 102,555 | 102,078 | 101,208 | 101,330 | 102,056 | |||||||||
Boxcar Fleet | ||||||||||||||
Ending balance | 16,555 | 16,398 | 16,227 | 16,007 | 15,859 | |||||||||
Utilization | 92.4 | % | 92.6 | % | 93.5 | % | 92.8 | % | 94.7 | % | ||||
Rail Europe Statistics | ||||||||||||||
Fleet Rollforward | ||||||||||||||
Beginning balance | 23,180 | 23,227 | 23,166 | 23,004 | 23,124 | |||||||||
Cars added | 179 | 197 | 63 | 245 | 258 | |||||||||
Cars scrapped/sold | (132 | ) | (258 | ) | (225 | ) | (125 | ) | (148 | ) | ||||
Ending balance | 23,227 | 23,166 | 23,004 | 23,124 | 23,234 | |||||||||
Utilization | 95.6 | % | 96.8 | % | 96.7 | % | 97.8 | % | 98.4 | % | ||||
Average active railcars | 22,215 | 22,290 | 22,327 | 22,407 | 22,759 | |||||||||
Rail North America Industry Statistics | ||||||||||||||
Manufacturing Capacity Utilization Index (3) | 76.1 | % | 77.3 | % | 77.5 | % | 77.8 | % | 78.1 | % | ||||
Year-over-year Change in U.S. Carloadings (excl. intermodal) (4) | 3.8 | % | 2.9 | % | (0.3 | )% | 1.3 | % | 2.0 | % | ||||
Year-over-year Change in U.S. Carloadings (chemical) (4) | 0.2 | % | 1.2 | % | 3.1 | % | 3.8 | % | 4.5 | % | ||||
Year-over-year Change in U.S. Carloadings (petroleum) (4) | (14.8 | )% | (12.2 | )% | 3.3 | % | 6.8 | % | 14.7 | % | ||||
Production Backlog at Railcar Manufacturers (5) | 64,253 | 58,275 | 55,216 | 65,161 | n/a | (6) | ||||||||
American Steamship Company Statistics | ||||||||||||||
Total Net Tons Carried (millions) | 9.8 | 8.5 | 0.9 | 8.1 | 8.7 | |||||||||
_________
(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. The index is calculated using the weighted average lease rate for a group of railcar types that
(2) Excludes boxcar fleet.
(3) As reported and revised by the Federal Reserve.
(4) As reported by the
(5) As reported by the
(6) Not available, not published as of the date of this release.