CHICAGO--(BUSINESS WIRE)--GATX Corporation (NYSE:GMT) today reported 2010 fourth quarter net income of $19.5 million or $.42 per diluted share, compared to net income of $21.5 million or $.45 per diluted share in the fourth quarter of 2009. The 2010 fourth quarter results include a tax benefit of $5.8 million or $.12 per diluted share, partially offset by negative fair-value adjustments on interest rate swaps at GATX’s European rail affiliate, AAE Cargo (AAE) of $1.3 million or $.03 per diluted share. The 2009 fourth quarter results include a $7.4 million or $.15 per diluted share tax benefit and negative fair-value adjustments of $2.2 million or $.05 per diluted share related to the AAE interest rate swaps.
Net income for the full-year 2010 was $80.8 million or $1.72 per diluted share, compared to net income of $81.4 million or $1.70 per diluted share in the prior year. The 2010 results include a net positive impact of $6.2 million or $.13 per diluted share related to tax benefits and the favorable resolution of a litigation matter, partially offset by the negative fair-value adjustments on interest rate swaps at AAE. The 2009 results include a net negative impact of $13.3 million or $.27 per diluted share related to the AAE interest rate swaps, partially offset by a tax benefit.
Brian A. Kenney, president and chief executive officer of GATX, said, “Our 2010 results are in line with our original expectations. In 2010, we focused on fleet utilization, cost containment and asset growth, and we executed in all three areas. Rail’s North American fleet utilization increased again in the fourth quarter, ending the year at 97.4% compared to 95.9% at the end of 2009. We managed our maintenance and SG&A costs effectively, especially with the volatile rail market producing a high level of churn in our fleet. In addition, we successfully acquired an interest in approximately 8,000 existing railcars at attractive prices through two large transactions. In total, investment volume was $585 million in 2010, up significantly from 2009.”
Mr. Kenney continued, “Looking forward, although absolute railcar lease rates are increasing, the rollover effect of leases renewing at rates lower than expiring rates will continue to pressure revenue. Our marine joint ventures will also see continued pressure on charter rates reflecting continued low demand and overcapacity in most marine sectors. We expect stable performance from American Steamship Company in 2011. On the positive side, we expect to realize continued low funding costs and an increase in attractive asset remarketing opportunities.”
Mr. Kenney concluded, “As a result of this outlook, we currently expect 2011 earnings to be in the range of $1.70 – $1.80 per diluted share. In the year ahead, GATX will focus on lease pricing improvement, effective asset remarketing and asset growth opportunities. Successful execution on these initiatives and continued improvement in our markets will enhance our long-term performance.”
RAIL
Rail segment profit was $39.2 million in the fourth quarter of 2010, compared to $33.9 million in the fourth quarter of 2009. The fourth quarter 2010 and 2009 results include negative pre-tax adjustments of $1.5 million and $2.4 million, respectively, related to the change in fair value of interest rate swaps at AAE. Rail reported segment profit of $150.6 million in 2010, compared to $169.1 million in 2009. The 2010 and 2009 results include negative pre-tax adjustments of $10.4 million and $24.4 million, respectively, related to the AAE interest rate swaps. The reduction in segment profit was driven by the year-over-year decline in lease income as there were fewer average active cars in the North American fleet and lease rates on renewals were generally lower throughout 2010.
At December 31, 2010, Rail’s North American fleet totaled approximately 111,000 cars. Fleet utilization was 97.4 %, up from 96.8% at the end of the third quarter and 95.9% at 2009 year end. The European wholly-owned tank car fleet totaled approximately 20,000 cars and utilization was 95.7%, up from 95.3% at the end of the third quarter and 94.7% at 2009 year end.
During the fourth quarter of 2010, lease renewal pricing on cars in the Lease Price Index (LPI) decreased 14.0% versus expiring lease rates, compared to a 15.7% decrease in the prior quarter and an 18.7% decrease in the fourth quarter 2009. The average lease term on LPI renewals during the fourth quarter was 36 months, consistent with the prior quarter and down from 43 months in the fourth quarter of 2009. For the full-year 2010, lease renewal rates on cars in the LPI decreased 15.8% versus expiring rates with an average renewal term of 35 months. This compares with an average renewal rate decrease of 11.0% and average renewal term of 41 months in 2009. Total investment volume in 2010 at Rail was $475 million, compared to $345 million in 2009.
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.
SPECIALTY
Specialty reported segment profit of $8.5 million in the fourth quarter of 2010 compared to $8.1 million in the prior year period. For 2010, Specialty reported segment profit of $48.7 million, compared to $51.6 million in 2009. Lower remarketing income and lower share of affiliates’ earnings from the marine joint ventures contributed to the decline in segment profit year over year.
The Specialty portfolio currently consists of approximately $744.4 million of owned assets (including on and off balance sheet assets) and third-party managed portfolios totaling approximately $241.9 million.
AMERICAN STEAMSHIP COMPANY
American Steamship Company (ASC) reported segment profit of $6.6 million in the fourth quarter 2010 compared to $6.0 million in the fourth quarter 2009. Segment profit for 2010 was $28.6 million compared to $16.1 million in 2009. The full-year segment profit increase was driven by a 32% increase in tonnage carried in 2010 versus 2009, primarily due to greater demand for iron ore shipments. During the current winter lay-up season, ASC will work with its customers to gauge volume expectations for 2011 and plan winter maintenance and future vessel deployment accordingly.
COMPANY DESCRIPTION
GATX Corporation (NYSE:GMT) provides leasing and related services to customers operating rail, marine and other targeted assets. GATX is a leader in leasing transportation assets and controls one of the largest railcar fleets in the world. Applying over a century of operating experience and strong market and asset expertise, GATX provides quality assets and services to customers worldwide. 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 2010 fourth quarter and full-year results. Teleconference details are as follows:
| Thursday, January 20th | ||||||||||||||||
|
11:00 A.M. Eastern Time |
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| Domestic Dial-In: 1-888-634-9984 | ||||||||||||||||
| International Dial-In: 1-719-457-2633 | ||||||||||||||||
| Replay: 1-888-203-1112 or 1-719-457-0820 /Access Code: 8245933 | ||||||||||||||||
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 such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “predict,” “project” or other words and terms of similar meaning. 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 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, general economic, market, regulatory and political conditions in the rail, marine, industrial and other industries served by GATX and its customers; lease rates, utilization levels and operating costs in GATX’s primary operating segments; conditions in the capital markets; changes in GATX’s credit ratings and financing costs; regulatory rulings that may impact the economic value and operating costs of assets; competitive factors in GATX’s primary markets including lease pricing and asset availability; changes in loss provision levels within GATX’s portfolio; impaired asset charges that may result from changing market conditions or portfolio management decisions implemented by GATX; the opportunity for remarketing income and the outcome of pending or threatened litigation. 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.
Investor, corporate, financial, historical financial, photographic and news release information may be found at www.gatx.com.
(1/20/11)
--Tabular Follows--
| GATX CORPORATION AND SUBSIDIARIES | |||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||
| (In Millions, Except Per Share Data) | |||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||
| December 31 | December 31 | ||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||
| Gross Income | |||||||||||||
| Lease income | $ | 222.5 | $ | 226.2 | $ | 873.5 | $ | 905.1 | |||||
| Marine operating revenue | 59.8 | 52.7 | 185.3 | 128.4 | |||||||||
| Asset remarketing income | 3.0 | 4.6 | 31.4 | 29.8 | |||||||||
| Other income | 21.0 | 19.0 | 76.6 | 61.6 | |||||||||
| Revenues | 306.3 | 302.5 | 1,166.8 | 1,124.9 | |||||||||
| Share of affiliates’ earnings | 7.5 | 6.0 | 38.1 | 29.0 | |||||||||
| Total Gross Income | 313.8 | 308.5 | 1,204.9 | 1,153.9 | |||||||||
| Ownership Costs | |||||||||||||
| Depreciation | 55.9 | 55.9 | 217.0 | 217.7 | |||||||||
| Interest expense, net | 42.0 | 42.4 | 167.1 | 167.5 | |||||||||
| Operating lease expense | 35.8 | 34.9 | 140.2 | 136.6 | |||||||||
| Total Ownership Costs | 133.7 | 133.2 | 524.3 | 521.8 | |||||||||
| Other Costs and Expenses | |||||||||||||
| Maintenance expense | 68.3 | 73.7 | 267.0 | 269.0 | |||||||||
| Marine operating expense | 43.9 | 36.2 | 129.1 | 87.2 | |||||||||
| Selling, general and administrative | 37.5 | 25.9 | 134.8 | 127.8 | |||||||||
| Other | 12.8 | 18.0 | 52.3 | 40.2 | |||||||||
| Total Other Costs and Expenses | 162.5 | 153.8 | 583.2 | 524.2 | |||||||||
| Income before Income Taxes | 17.6 | 21.5 | 97.4 | 107.9 | |||||||||
| Income Tax (Benefit) Provision | (1.9 | ) | - | 16.6 | 26.5 | ||||||||
| Net Income | $ | 19.5 | $ | 21.5 | $ | 80.8 | $ | 81.4 | |||||
| GATX CORPORATION AND SUBSIDIARIES | ||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | ||||||||||||
| (In Millions, Except Per Share Data) | ||||||||||||
| (Continued) | ||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||
| December 31 | December 31 | |||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||
| Per Share Data | ||||||||||||
| Basic | $ | 0.42 | $ | 0.47 | $ | 1.75 | $ | 1.74 | ||||
| Average number of common shares | 46.2 | 45.9 | 46.1 | 46.6 | ||||||||
| Diluted | $ | 0.42 | $ | 0.45 | $ | 1.72 | $ | 1.70 | ||||
| Average number of common shares and | ||||||||||||
| common share equivalents | 46.8 | 48.1 | 47.0 | 48.8 | ||||||||
| Dividends declared per common share | $ | 0.28 | $ | 0.28 | $ | 1.12 | $ | 1.12 | ||||
| GATX CORPORATION AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
| (In Millions) | ||||||||
| December 31 | December 31 | |||||||
| 2010 | 2009 | |||||||
| Assets | ||||||||
| Cash and Cash Equivalents | $ | 78.5 | $ | 41.7 | ||||
| Restricted Cash | 56.6 | 33.2 | ||||||
| Receivables | ||||||||
| Rent and other receivables | 71.1 | 68.7 | ||||||
| Finance leases | 347.7 | 309.7 | ||||||
| Less: allowance for possible losses | (11.6 | ) | (13.4 | ) | ||||
| 407.2 | 365.0 | |||||||
| Operating Lease Assets, Facilities and Other | ||||||||
| Rail | 5,513.6 | 5,449.0 | ||||||
| Specialty | 280.8 | 245.4 | ||||||
| ASC | 389.1 | 380.2 | ||||||
| Less: allowance for depreciation | (2,049.7 | ) | (2,041.3 | ) | ||||
| 4,133.8 | 4,033.3 | |||||||
| Investments in Affiliated Companies | 486.1 | 452.2 | ||||||
| Goodwill | 92.7 | 97.5 | ||||||
| Other Assets | 187.5 | 183.5 | ||||||
| Total Assets | $ | 5,442.4 | $ | 5,206.4 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Accounts Payable and Accrued Expenses | $ | 114.6 | $ | 123.0 | ||||
| Debt | ||||||||
| Commercial paper and borrowings under bank credit facilities | 115.6 | 70.8 | ||||||
| Recourse | 2,801.8 | 2,553.0 | ||||||
| Nonrecourse | 217.2 | 234.2 | ||||||
| Capital lease obligations | 41.9 | 54.8 | ||||||
| 3,176.5 | 2,912.8 | |||||||
| Deferred Income Taxes | 750.6 | 730.6 | ||||||
| Other Liabilities | 287.0 | 337.4 | ||||||
| Total Liabilities | 4,328.7 | 4,103.8 | ||||||
| Total Shareholders’ Equity | 1,113.7 | 1,102.6 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 5,442.4 | $ | 5,206.4 | ||||
| GATX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
| SEGMENT DATA (UNAUDITED) | ||||||||||||||||||
| Three Months Ended December 31, 2010 | ||||||||||||||||||
| (In Millions) | ||||||||||||||||||
| GATX | ||||||||||||||||||
| Rail | Specialty | ASC | Other | Consolidated | ||||||||||||||
| Gross Income | ||||||||||||||||||
| Lease income | $ | 206.7 | $ | 14.8 | $ | 1.0 | $ | - | $ | 222.5 | ||||||||
| Marine operating revenue | - | - | 59.8 | - | 59.8 | |||||||||||||
| Asset remarketing income | 1.9 | 1.1 | - | - | 3.0 | |||||||||||||
| Other income | 18.3 | 0.5 | 0.2 | 2.0 | 21.0 | |||||||||||||
| Revenues | 226.9 | 16.4 | 61.0 | 2.0 | 306.3 | |||||||||||||
| Share of affiliates’ earnings | (0.6 | ) | 8.1 | - | - | 7.5 | ||||||||||||
| Total Gross Income | 226.3 | 24.5 | 61.0 | 2.0 | 313.8 | |||||||||||||
| Ownership Costs | ||||||||||||||||||
| Depreciation | 47.6 | 4.5 | 3.8 | - | 55.9 | |||||||||||||
| Interest expense, net | 31.6 | 7.2 | 2.0 | 1.2 | 42.0 | |||||||||||||
| Operating lease expense | 35.5 | 0.4 | - | (0.1 | ) | 35.8 | ||||||||||||
| Total Ownership Costs | 114.7 | 12.1 | 5.8 | 1.1 | 133.7 | |||||||||||||
| Other Costs and Expenses | ||||||||||||||||||
| Maintenance expense | 63.6 | - | 4.7 | - | 68.3 | |||||||||||||
| Marine operating expense | - | - | 43.9 | - | 43.9 | |||||||||||||
| Other | 8.8 | 3.9 | - | 0.1 | 12.8 | |||||||||||||
| Total Other Costs and Expenses | 72.4 | 3.9 | 48.6 | 0.1 | 125.0 | |||||||||||||
| Segment Profit | $ | 39.2 | $ | 8.5 | $ | 6.6 | $ | 0.8 | 55.1 | |||||||||
| Selling, general and administrative | 37.5 | |||||||||||||||||
| Income before Income Taxes | 17.6 | |||||||||||||||||
| Income Tax Benefit | (1.9 | ) | ||||||||||||||||
| Net Income | $ | 19.5 | ||||||||||||||||
|
Selected Data: |
||||||||||||||||||
| Investment Volume | $ | 293.1 | $ | 44.8 | $ | 1.7 | $ | 1.0 | $ | 340.6 | ||||||||
| Asset Remarketing Income: | ||||||||||||||||||
| Disposition Gains on Owned Assets | 1.9 | - | - | - | 1.9 | |||||||||||||
| Residual Sharing Income | - | 1.1 | - | - | 1.1 | |||||||||||||
| Total Asset Remarketing Income | $ | 1.9 | $ | 1.1 | $ | - | $ | - | $ | 3.0 | ||||||||
| Scrapping Gains (a) | $ | 4.8 | - | - | - | $ | 4.8 | |||||||||||
(a) Included in Other income
| GATX CORPORATION AND SUBSIDIARIES | ||||||||||||||||
| SEGMENT DATA (UNAUDITED) | ||||||||||||||||
| Twelve Months Ended December 31, 2010 | ||||||||||||||||
| (In Millions) | ||||||||||||||||
| GATX | ||||||||||||||||
| Rail | Specialty | ASC | Other | Consolidated | ||||||||||||
| Gross Income | ||||||||||||||||
| Lease income | $ | 813.3 | $ | 56.1 | $ | 4.1 | $ | - | $ | 873.5 | ||||||
| Marine operating revenue | - | - | 185.3 | - | 185.3 | |||||||||||
| Asset remarketing income | 17.4 | 14.0 | - | - | 31.4 | |||||||||||
| Other income | 72.3 | 1.0 | 0.2 | 3.1 | 76.6 | |||||||||||
| Revenues | 903.0 | 71.1 | 189.6 | 3.1 | 1,166.8 | |||||||||||
| Share of affiliates’ earnings | 1.2 | 36.9 | - | - | 38.1 | |||||||||||
| Total Gross Income | 904.2 | 108.0 | 189.6 | 3.1 | 1,204.9 | |||||||||||
| Ownership Costs | ||||||||||||||||
| Depreciation | 188.8 | 17.5 | 10.7 | - | 217.0 | |||||||||||
| Interest expense, net | 127.1 | 28.2 | 8.3 | 3.5 | 167.1 | |||||||||||
| Operating lease expense | 139.1 | 1.4 | - | (0.3 | ) | 140.2 | ||||||||||
| Total Ownership Costs | 455.0 | 47.1 | 19.0 | 3.2 | 524.3 | |||||||||||
| Other Costs and Expenses | ||||||||||||||||
| Maintenance expense | 254.1 | - | 12.9 | - | 267.0 | |||||||||||
| Marine operating expense | - | - | 129.1 | - | 129.1 | |||||||||||
| Other | 44.5 | 12.2 | - | (4.4 | ) | 52.3 | ||||||||||
| Total Other Costs and Expenses | 298.6 | 12.2 | 142.0 | (4.4 | ) | 448.4 | ||||||||||
| Segment Profit | $ | 150.6 | $ | 48.7 | $ | 28.6 | $ | 4.3 | 232.2 | |||||||
| Selling, general and administrative | 134.8 | |||||||||||||||
| Income before Income Taxes | 97.4 | |||||||||||||||
| Income Tax Provision | 16.6 | |||||||||||||||
| Net Income | $ | 80.8 | ||||||||||||||
|
Selected Data: |
||||||||||||||||
| Investment Volume | $ | 474.6 | $ | 97.4 | $ | 9.0 | $ | 4.1 | $ | 585.1 | ||||||
| Asset Remarketing Income: | ||||||||||||||||
| Disposition Gains on Owned Assets | 17.4 | 6.4 | - | - | 23.8 | |||||||||||
| Residual Sharing Income | - | 7.6 | - | - | 7.6 | |||||||||||
| Total Asset Remarketing Income | $ | 17.4 | $ | 14.0 | $ | - | $ | - | $ | 31.4 | ||||||
| Scrapping Gains (a) | $ | 18.0 | - | - | - | $ | 18.0 | |||||||||
(a) Included in Other income
| GATX CORPORATION AND SUBSIDIARIES | |||||||||||||||||
| SEGMENT DATA (UNAUDITED) | |||||||||||||||||
| Three Months Ended December 31, 2009 | |||||||||||||||||
| (In Millions) | |||||||||||||||||
| GATX | |||||||||||||||||
| Rail | Specialty | ASC | Other | Consolidated | |||||||||||||
| Gross Income | |||||||||||||||||
| Lease income | $ | 210.2 | $ | 15.0 | $ | 1.0 | $ | - | $ | 226.2 | |||||||
| Marine operating revenue | - | - | 52.7 | - | 52.7 | ||||||||||||
| Asset remarketing income | 2.6 | 2.0 | - | - | 4.6 | ||||||||||||
| Other income | 18.1 | 0.6 | 0.2 | 0.1 | 19.0 | ||||||||||||
| Revenues | 230.9 | 17.6 | 53.9 | 0.1 | 302.5 | ||||||||||||
| Share of affiliates’ earnings | (1.3 | ) | 7.3 | - | - | 6.0 | |||||||||||
| Total Gross Income | 229.6 | 24.9 | 53.9 | 0.1 | 308.5 | ||||||||||||
| Ownership Costs | |||||||||||||||||
| Depreciation | 48.1 | 4.1 | 3.7 | - | 55.9 | ||||||||||||
| Interest expense, net | 33.0 | 7.2 | 2.2 | - | 42.4 | ||||||||||||
| Operating lease expense | 34.6 | 0.4 | - | (0.1 | ) | 34.9 | |||||||||||
| Total Ownership Costs | 115.7 | 11.7 | 5.9 | (0.1 | ) | 133.2 | |||||||||||
| Other Costs and Expenses | |||||||||||||||||
| Maintenance expense | 68.0 | - | 5.7 | - | 73.7 | ||||||||||||
| Marine operating expense | - | - | 36.2 | - | 36.2 | ||||||||||||
| Other | 12.0 | 5.1 | 0.1 | 0.8 | 18.0 | ||||||||||||
| Total Other Costs and Expenses | 80.0 | 5.1 | 42.0 | 0.8 | 127.9 | ||||||||||||
| Segment Profit (Loss) | $ | 33.9 | $ | 8.1 | $ | 6.0 | $ | (0.6 | ) | 47.4 | |||||||
| Selling, general and administrative | 25.9 | ||||||||||||||||
| Income before Income Taxes | 21.5 | ||||||||||||||||
| Income Tax Provision | - | ||||||||||||||||
| Net Income | $ | 21.5 | |||||||||||||||
|
Selected Data: |
|||||||||||||||||
| Investment Volume | $ | 68.0 | $ | 33.6 | $ | 0.3 | $ | 2.0 | $ | 103.9 | |||||||
| Asset Remarketing Income: | |||||||||||||||||
| Disposition Gains on Owned Assets | 0.2 | 0.3 | - | - | 0.5 | ||||||||||||
| Residual Sharing Income | 2.4 | 1.7 | - | - | 4.1 | ||||||||||||
| Total Asset Remarketing Income | $ | 2.6 | $ | 2.0 | $ | - | $ | - | $ | 4.6 | |||||||
| Scrapping Gains (a) | $ | 3.5 | - | - | - | $ | 3.5 | ||||||||||
(a) Included in Other income
| GATX CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
| SEGMENT DATA (UNAUDITED) | ||||||||||||||||||
| Twelve Months Ended December 31, 2009 | ||||||||||||||||||
| (In Millions) | ||||||||||||||||||
| GATX | ||||||||||||||||||
| Rail | Specialty | ASC | Other | Consolidated | ||||||||||||||
| Gross Income | ||||||||||||||||||
| Lease income | $ | 844.5 | $ | 56.5 | $ | 4.1 | $ | - | $ | 905.1 | ||||||||
| Marine operating revenue | - | - | 128.4 | - | 128.4 | |||||||||||||
| Asset remarketing income | 14.0 | 15.8 | - | - | 29.8 | |||||||||||||
| Other income | 57.9 | 2.4 | 0.2 | 1.1 | 61.6 | |||||||||||||
| Revenues | 916.4 | 74.7 | 132.7 | 1.1 | 1,124.9 | |||||||||||||
| Share of affiliates’ earnings | (10.1 | ) | 39.1 | - | - | 29.0 | ||||||||||||
| Total Gross Income | 906.3 | 113.8 | 132.7 | 1.1 | 1,153.9 | |||||||||||||
| Ownership Costs | ||||||||||||||||||
| Depreciation | 189.1 | 18.6 | 10.0 | - | 217.7 | |||||||||||||
| Interest expense, net | 128.7 | 26.8 | 9.0 | 3.0 | 167.5 | |||||||||||||
| Operating lease expense | 135.5 | 1.4 | - | (0.3 | ) | 136.6 | ||||||||||||
| Total Ownership Costs | 453.3 | 46.8 | 19.0 | 2.7 | 521.8 | |||||||||||||
| Other Costs and Expenses | ||||||||||||||||||
| Maintenance expense | 253.1 | - | 15.9 | - | 269.0 | |||||||||||||
| Marine operating expense | - | - | 87.2 | - | 87.2 | |||||||||||||
| Other | 30.8 | 15.4 | (5.5 | ) | (0.5 | ) | 40.2 | |||||||||||
| Total Other Costs and Expenses | 283.9 | 15.4 | 97.6 | (0.5 | ) | 396.4 | ||||||||||||
| Segment Profit (Loss) | $ | 169.1 | $ | 51.6 | $ | 16.1 | $ | (1.1 | ) | 235.7 | ||||||||
| Selling, general and administrative | 127.8 | |||||||||||||||||
| Income before Income Taxes | 107.9 | |||||||||||||||||
| Income Tax Provision | 26.5 | |||||||||||||||||
| Net Income | $ | 81.4 | ||||||||||||||||
|
Selected Data: |
||||||||||||||||||
| Investment Volume | $ | 345.3 | $ | 119.5 | $ | 7.2 | $ | 8.4 | $ | 480.4 | ||||||||
| Asset Remarketing Income: | ||||||||||||||||||
| Disposition Gains on Owned Assets | 7.5 | 3.5 | - | - | 11.0 | |||||||||||||
| Residual Sharing Income | 6.5 | 12.3 | - | - | 18.8 | |||||||||||||
| Total Asset Remarketing Income | $ | 14.0 | $ | 15.8 | $ | - | $ | - | $ | 29.8 | ||||||||
| Scrapping Gains (a) | $ | 9.7 | - | - | - | $ | 9.7 | |||||||||||
(a) Included in Other income
| GATX CORPORATION AND SUBSIDIARIES | ||||||||||||||||
| SUPPLEMENTAL INFORMATION (UNAUDITED) | ||||||||||||||||
| (In Millions, Except Leverage) | ||||||||||||||||
| 12/31/2009 | 3/31/2010 | 6/30/2010 | 9/30/2010 | 12/31/2010 | ||||||||||||
|
Assets by Segment (includes off-balance sheet assets) |
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| Rail | $ | 5,110.4 | $ | 4,998.1 | $ | 4,899.7 | $ | 4,978.0 | $ | 5,189.9 | ||||||
| Specialty | 676.0 | 693.8 | 691.5 | 713.8 | 728.1 | |||||||||||
| ASC | 269.0 | 260.3 | 285.5 | 274.3 | 271.1 | |||||||||||
| Other | 92.2 | 90.3 | 89.5 | 94.7 | 89.7 | |||||||||||
| Total Assets, Excluding Cash | $ | 6,147.6 | $ | 6,042.5 | $ | 5,966.2 | $ | 6,060.8 | $ | 6,278.8 | ||||||
| Non-performing Investments | $ | 18.2 | $ | 17.8 | $ | 17.4 | $ | 17.1 | $ | 16.7 | ||||||
|
Capital Structure |
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| Commercial Paper and Bank Credit Facilities, | ||||||||||||||||
| Net of Unrestricted Cash | $ | 29.1 | $ | (132.4 | ) | $ | 72.0 | $ | 48.4 | $ | 37.1 | |||||
| On Balance Sheet Recourse Debt | 2,553.0 | 2,764.1 | 2,515.3 | 2,534.6 | 2,801.8 | |||||||||||
| On Balance Sheet Nonrecourse Debt | 234.2 | 226.9 | 225.2 | 222.7 | 217.2 | |||||||||||
| Off Balance Sheet Recourse Debt | 813.0 | 742.6 | 746.3 | 787.4 | 782.8 | |||||||||||
| Off Balance Sheet Nonrecourse Debt | 203.1 | 200.3 | 197.8 | 195.5 | 188.7 | |||||||||||
| Capital Lease Obligations | 54.8 | 53.4 | 52.0 | 50.3 | 41.9 | |||||||||||
| Total Borrowings, Net of Unrestricted Cash | $ | 3,887.2 | $ | 3,854.9 | $ | 3,808.6 | $ | 3,838.9 | $ | 4,069.5 | ||||||
| Total Recourse Debt (a) | $ | 3,449.9 | $ | 3,427.7 | $ | 3,385.6 | $ | 3,420.7 | $ | 3,663.6 | ||||||
| Shareholders’ Equity | $ | 1,102.6 | $ | 1,096.2 | $ | 1,044.9 | $ | 1,098.6 | $ | 1,113.7 | ||||||
| Recourse Leverage | 3.1 | 3.1 | 3.2 | 3.1 | 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
| GATX CORPORATION AND SUBSIDIARIES | |||||||||||||||
| SUPPLEMENTAL INFORMATION (UNAUDITED) | |||||||||||||||
| (Continued) | |||||||||||||||
| 12/31/2009 | 3/31/2010 | 6/30/2010 | 9/30/2010 | 12/31/2010 | |||||||||||
|
North American Rail Statistics (wholly-owned fleet) |
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| Lease Price Index (LPI) (a) | |||||||||||||||
| Average Renewal Lease Rate Change | -18.7 | % | -15.2 | % | -18.6 | % | -15.7 | % | -14.0 | % | |||||
| Average Renewal Term (months) | 43 | 31 | 36 | 36 | 36 | ||||||||||
| Fleet Rollforward | |||||||||||||||
| Beginning Balance | 111,206 | 110,870 | 108,918 | 108,626 | 108,800 | ||||||||||
| Cars Added | 774 | 346 | 434 | 1,189 | 3,479 | ||||||||||
| Cars Scrapped | (1,108 | ) | (1,026 | ) | (726 | ) | (917 | ) | (870 | ) | |||||
| Cars Sold | (2 | ) | (1,272 | ) | - | (98 | ) | (20 | ) | ||||||
| Ending Balance | 110,870 | 108,918 | 108,626 | 108,800 | 111,389 | ||||||||||
| Utilization | 95.9 | % | 96.0 | % | 96.5 | % | 96.8 | % | 97.4 | % | |||||
|
GATX Rail Europe Statistics (wholly-owned fleet) |
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| Fleet Rollforward | |||||||||||||||
| Beginning Balance | 20,005 | 20,033 | 20,321 | 20,302 | 20,226 | ||||||||||
| Cars Added | 100 | 288 | 15 | 61 | 298 | ||||||||||
| Cars Scrapped/Sold | (72 | ) | - | (34 | ) | (137 | ) | (92 | ) | ||||||
| Ending Balance | 20,033 | 20,321 | 20,302 | 20,226 | 20,432 | ||||||||||
| Utilization | 94.7 | % | 94.4 | % | 94.4 | % | 95.3 | % | 95.7 | % | |||||
|
Rail Industry Statistics |
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| Manufacturing Capacity Utilization Index (b) | 71.6 | % | 72.8 | % | 74.2 | % | 75.3 | % | 76.0 | % | |||||
| Year-over-year Change in U.S. Carloadings (total, excl. intermodal) (c) | -16.1 | % | 2.2 | % | 7.8 | % | 7.2 | % | 7.3 | % | |||||
| Year-over-year Change in U.S. Carloadings (chemical) (c) | -9.6 | % | 13.5 | % | 12.8 | % | 10.2 | % | 9.6 | % | |||||
| Year-over-year Change in U.S. Carloadings (petroleum products) (c) | -11.1 | % | 2.0 | % | 4.9 | % | 4.9 | % | 5.9 | % | |||||
| Production Backlog at Railcar Manufacturers (d) | 10,462 | 12,990 | 14,930 | 19,267 | n/a (e) | ||||||||||
|
American Steamship Company (ASC) Statistics |
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| Total Net Tons Carried (millions) | 8.6 | 1.3 | 8.3 | 9.9 | 8.5 | ||||||||||
______________________
(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 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.