* Board of directors declares quarterly dividend of $.32 per common
share, unchanged from prior quarter
CHICAGO, Jan. 30 /PRNewswire-FirstCall/ -- GATX Corporation (NYSE: GMT)
today announced its 2002 fourth quarter and full year results. For the 2002
fourth quarter, GATX reported a net loss of $29.4 million or $.60 per diluted
share compared to a net loss of $12.1 million or $.25 per diluted share in the
prior year period. For the full year, GATX reported net income of $.3 million
compared to $172.9 million or $3.51 per diluted share in 2001.
The 2002 fourth quarter and full year results include a number of one-time
and air-related items which are detailed in an accompanying table.
Significant 2002 fourth quarter items include $18 million of after-tax
impairment charges on aircraft including GATX's 50% share of an impairment
charge on Fokker aircraft owned by Pembroke, an $11 million after-tax charge
for a reduction in workforce due to the company's exit of the specialty and
venture businesses and company-wide reorganization, and a $9 million after-tax
write-down of goodwill associated with the company's exit from the venture
leasing business.
Ronald H. Zech, chairman and president of GATX, stated "Results for the
2002 fourth quarter and full year reflect the challenges we continue to face
in our markets. The rail and technology sectors continue to mirror weak
economic conditions, and volatility and uncertainty remain in the air sector.
We have offset some of this pressure by aggressively maintaining asset
utilization, reducing costs, and maximizing our liquidity position, but we
cannot entirely overcome larger market forces.
"Although financial results for the year were disappointing, a number of
steps taken in 2002 provide a basis to leverage our performance as underlying
markets recover:
-- GATX Rail completed several fleet acquisitions in North America and
expanded its presence in Europe through the acquisition of the
remainder of KVG.
-- GATX Air placed all 16 new aircraft deliveries and 10 renewals in
2002, and maintained nearly 100% fleet utilization in a very
difficult market. GATX Air also completed an additional 18 aircraft
placements within its managed portfolio.
-- GATX reduced year-over-year SG&A by $40 million, exceeding the target
established at the beginning of the year.
-- Continued strong cash flow from operations and portfolio proceeds of
$1.3 billion enabled GATX to invest over $1.2 billion in its markets
while also repaying $1.2 billion of maturing debt.
-- Despite capital market volatility, GATX completed over $1.5 billion of
financing in 2002, supporting rail, air, and technology investment
activity while maintaining a sizeable liquidity position.
-- GATX announced its exit from the specialty and venture businesses,
heightening the focus on its core markets, and reorganized its
management structure across the company to institute a flatter, more
efficient organization.
"Looking forward to 2003, as previously indicated, we expect the
challenging conditions in our markets to persist throughout the year. These
conditions, coupled with the potential impact from various macro factors, make
it very difficult to provide earnings guidance at this time. However, based
in part on the assumption that there is no material change in the current
operating environment, we currently expect 2003 earnings to be in the range of
$1.30 per diluted share, or essentially flat with 2002 when adjusted for
significant one-time items and air impairments.
"It is important to note that 2003 earnings performance is subject to a
high degree of uncertainty due to a number of factors, both positive and
negative, including: a significant change in the economic environment and
resulting impact on our markets, material deterioration in the air industry
from current conditions, unanticipated asset remarketing gains, timing of
further cost savings initiatives that we will pursue, and any impact of
geopolitical events on the world economy and our end markets."
Mr. Zech added, "GATX has faced an operating environment that pressured
every facet of our business: weak economic conditions, a three-year downturn
in the rail sector, unprecedented events and uncertainty in the air industry,
a global slowdown in IT spending, and volatile capital markets. However, I
believe that the steps taken in 2002 to focus on and invest in our franchise
businesses, along with the commitment of our outstanding employees, position
us for the eventual recovery in our markets."
DIVIDEND ANNOUNCEMENT
GATX also announced that the board of directors of GATX Corporation
declared a quarterly dividend of $.32 per common share, payable March 31,
2003, to shareholders of record on March 7, 2003. This quarterly dividend is
unchanged from the prior quarter.
Mr. Zech added, "The decision to hold the 2003 first quarter dividend flat
with the prior quarter involved careful evaluation as the board balanced a
number of competing issues. Our markets remain weak, our outlook is subject
to volatility, and if earnings were to remain at today's low level, they would
be insufficient to support the current dividend level. However, we also
recognize the importance of the dividend to our shareholder base, the
stability it provides during these volatile times, the fact that it is
adequately supported by our strong cash flow, and the possibility that we are
at a low point in the economic and business cycle.
"Going forward, the board's decision regarding the dividend will continue
to be based on factors such as the timing and magnitude of a recovery in
GATX's core markets and earnings, the stability of our operating environment,
and our capital structure and cash flow projections. The board will continue
monitoring these factors as the dividend is regularly reviewed."
The board also declared a quarterly dividend of $.625 per share on the
$2.50 preferred stock, payable March 1, 2003, to shareholders of record on
February 14, 2003. This quarterly dividend is unchanged from the prior
quarter.
GATX RAIL
GATX Rail reported net income of $6.3 million in the 2002 fourth quarter
compared to $22.1 million in the prior year period. For the full year, 2002
net income was $16.3 million compared to $44.1 million in the prior year. The
2002 and 2001 full year net income results include a number of large one-time
items such as the DEC goodwill write-down and reduction in workforce charges
in 2002, and the East Chicago repair facility closing costs in 2001.
Net income in the 2002 fourth quarter was below the prior year period and
recent quarters primarily due to a number of non-comparable items including
positive tax benefits in prior quarters, the absence of material scrapping
gains in the 2002 fourth quarter relative to prior quarters, and unusually
high operating expenses in the 2002 fourth quarter.
During the year, GATX Rail was primarily focused on balancing asset
utilization, lease rates, and length of renewal term, with a goal of
maximizing revenue while maintaining flexibility to capitalize on improved
market conditions in the future. Lease renewal rates in 2002 continued to be
down from the prior lease rates. With over 20,000 cars scheduled for renewal
in 2003, revenues will remain pressured. However, certain long-term
indicators appear to have turned positive: activity within GATX Rail's
customer base has improved on the basis of order inquiries, utilization is
holding firm, and railcar order backlogs at the manufacturers have improved.
Additionally, GATX Rail is operating more efficiently as a result of SG&A
reductions.
Utilization of GATX Rail's North American fleet was 91% at the end of the
fourth quarter, flat with the prior quarter and prior year levels. GATX
Rail's North American fleet was 107,000 cars at year end, a slight decrease
from prior quarters. In the 2002 fourth quarter, GATX Rail expanded its
international presence with the acquisition of the remainder of KVG, a leading
European-based railcar lessor with 9,000 cars.
North America manufacturing capacity utilization, as reported by the Federal
Reserve, declined to 75% at year end from 76% in the prior quarter.
Additionally, industry-wide chemical car load shipments were up 4% in the 2002
fourth quarter and 2% for the full year. The increase in shipments is
amplified by the low base in 2001, and existing rail fleets have been
available to absorb this increased activity.
FINANCIAL SERVICES
Financial Services reported a fourth quarter net loss of $31.1 million
compared to a net loss of $29.8 million in the prior year period. For the
2002 full year, Financial Services reported net income of $3.2 million
compared to a net loss of $18.9 million in the prior year. The 2002 and 2001
net income results include a number of large items including reduction in
workforce charges, and air and goodwill impairments. In addition, the 2002
results reflect market challenges and resulting weak performance within each
of Financial Services' business lines.
The primary focal point in Financial Services remains the air sector. As
noted in slides posted at http://www.gatx.com, GATX Air is scheduled to take delivery
of six new aircraft in 2003, and renew eight existing leases. Additionally,
depending on developments in the air industry and consistent with activity
across the aircraft leasing sector, unplanned aircraft returns may occur
periodically. GATX Air will continue to focus on maintaining high asset
utilization and customer and geographic diversity.
Investment volume for the full year totaled $1.2 billion compared to $1.4
billion in the prior year. The primary driver behind the investment volume
was the committed aircraft deliveries taken in 2002, and over $250 million of
technology volume. The 2002 technology volume compares to $440 million in
2001, and reflects the fact that 2001 included a portfolio acquisition
accounting for $130 million of the volume, and general IT spending continued
to slow globally in 2002. In addition to pursuing traditional new customer
volume, GATX Technology is actively pursuing portfolio acquisition
opportunities.
Remarketing income, comprised of both gains on asset sales and residual
sharing fees, was $14 million in the fourth quarter compared to $13 million in
the prior year period. Total 2002 remarketing income of $50 million compares
to $96 million in the prior year. The 2002 gains were spread across a wide
range of asset classes, while the 2001 gains were heavily weighted toward air
and specialty portfolios.
CREDIT STATISTICS
At the end of 2002, the allowance for losses was 6.3% of reservable assets
compared to 6.0% at the end of 2001 and 6.5% at the end of the third quarter.
The Company continues to maintain an overall loss allowance position at the
high end of its stated target range of 4.0%-6.5%.
Net charge-offs and impairments totaled $94 million during 2002, or 1.3%
of average total assets. While significantly below the prior year, 2002
levels reflect continued weakness in GATX's markets. In the prior year, net
charge-offs and impairments totaled $188 million, or 2.6% of average total
assets.
Non-performing leases and loans at the end of the 2002 totaled $95 million
or 3.2% of Financial Services' investments compared to $96 million (3.4%) at
the end of 2001 and $93 million (3.3%) in the 2002 third quarter.
2002 SIGNIFICANT ONE-TIME AND AIR ITEMS
Charge or Impairment/
(Gain) Item (In Millions, After-Tax) Per Diluted
2002 Full Year Share
2002 Fourth Quarter Items
Reduction in Workforce (1) $10.5 $.21
Ventures Goodwill Impairment (1) 8.7 .17
Pembroke/Fokker Aircraft (2) 10.7 .22
Other Aircraft (3) 7.4 .15
2002 Prior Quarter Items
Effect of Accounting Change (4) 34.9 .72
Gain on Sale of Portion of
Segment (5) (6.2) (.13)
Total Net One-Time & Air Items $66.0 $1.34
(1) In December 2002, GATX Corporation announced its intent to sell GATX
Ventures, curtail investment in its Specialty unit, and reorganize
its management structure. Related charges include a reduction in
workforce and the write-off of goodwill associated with the Ventures
unit.
(2) As disclosed in GATX's third quarter 10-Q, the company intended to
review its exposure, through its 50% interest in Pembroke Group
Limited, to Fokker-100 jet and Fokker-50 turboprop aircraft. Upon
completion of this review, GATX recorded the noted impairment
charge.
(3) Additional air charges recorded in the 2002 fourth quarter relate to
certain B757, B767, and B737 aircraft.
(4) GATX recorded a write-down of goodwill associated with DEC, its
tankcar leasing operation based in Poland. This was reported in the
2002 third quarter and recorded retroactive to January 1, 2002. The
goodwill impairment was in accordance with SFAS No. 142, Goodwill
and Other Intangible Assets.
(5) As part of the final stages of its sale of GATX Terminals
Corporation, GATX sold its interest in a bulk-liquid storage
facility in Mexico and recorded the noted gain in the 2002 first
quarter.
COMPANY DESCRIPTION
GATX Corporation (NYSE: GMT) is a specialized finance and leasing company
combining asset knowledge and services, structuring expertise, partnering and
risk capital to provide business solutions to customers and partners
worldwide. GATX specializes in railcar and locomotive leasing, aircraft
operating leasing, and information technology leasing.
TELECONFERENCE INFORMATION
GATX Corporation will host a teleconference to discuss year end quarter
results. Teleconference details are as follows:
Thursday, January 30th
11:00 AM Eastern Time
Domestic Dial-In: 1-800-706-6082
International Dial-In: 1-706-634-7421
Replay: 1-800-642-1687 / Access Code: 6795018
Call in details and real-time audio access are available at http://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.
UPDATE ON AIR PORTFOLIO
GATX Corporation has updated its Air portfolio presentation, and the
slides are currently available at http://www.gatx.com or by calling the GATX Investor
Relations Department.
FORWARD-LOOKING STATEMENTS
Certain statements within this document may constitute forward-looking
statements made pursuant to the safe harbor provision of the Private
Securities Litigation Reform Act of 1995. These statements are identified by
words such as "anticipate," "believe," "estimate," "expects," "intend,"
"predict," or "project" and similar expressions. This information may involve
risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements. Although the Company believes that the
expectations reflected in such forward-looking statements are based on
reasonable assumptions, such statements are subject to risks and uncertainties
that could cause actual results to differ materially from those projected.
Risks and uncertainties include, but are not limited to, general economic
conditions; aircraft and railcar lease rate and utilization levels; conditions
in the capital markets and the potential for a downgrade in our credit rating,
either of which could have an effect on our borrowing costs or our ability to
access the markets for commercial paper or secured and unsecured debt;
dynamics affecting customers within the chemical, petroleum and food
industries; regulatory rulings that may impact the economic value of assets;
competitors in the rail and air markets who may have access to capital at
lower costs than GATX; additional potential write-downs and/or provisions
within GATX's portfolio; impaired asset charges; and general market conditions
in the rail, air, technology, venture, and other large-ticket industries.
Investor, corporate, financial, historical financial, photographic and
news release information may be found at http://www.gatx.com.
--Tabular Follows--
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Millions, Except Per Share Data)
Three Months Twelve Months
Ended Ended
December 31 December 31
2002 2001 2002 2001
Gross Income
Revenues $323.9 $346.1 $1,281.7 $1,488.6
Gain on extinguishment of debt 2.1 -- 18.0 --
Share of affiliates' (loss)
earnings (10.2) (1.2) 47.5 32.8
Total Gross Income 315.8 344.9 1,347.2 1,521.4
Ownership Costs
Depreciation and amortization 92.1 100.9 368.1 415.9
Interest, net 58.5 57.4 231.1 249.9
Operating lease expense 47.9 46.3 187.9 194.8
Total Ownership Costs 198.5 204.6 787.1 860.6
Other Costs and Expenses
Operating expenses 66.8 62.5 234.0 241.1
Selling, general and
administrative 48.6 51.0 189.6 229.7
Provision for possible losses 7.3 36.5 36.6 98.4
Asset impairment charges 24.9 15.3 40.5 85.2
Reversal of litigation provision -- -- -- (13.1)
Reduction in workforce charges 16.9 13.4 16.9 13.4
Fair value adjustments for
derivatives .5 (1.8) 3.5 .5
Total Other Costs and Expenses 165.0 176.9 521.1 655.2
(Loss) Income from Continuing
Operations Before Income
Taxes and Cumulative Effect of
Accounting Change (47.7) (36.6) 39.0 5.6
Income Tax (Benefit) Provision (18.3) (24.5) 10.0 (1.9)
(Loss) Income from Continuing
Operations before
Cumulative Effect of Accounting
Change (29.4) (12.1) 29.0 7.5
Discontinued Operations
Operating results, net of taxes -- -- -- 1.5
Gain on sale of portion of
segment, net of taxes -- -- 6.2 163.9
Total Discontinued Operations -- -- 6.2 165.4
(Loss) Income before Cumulative
Effect
of Accounting Change (29.4) (12.1) 35.2 172.9
Cumulative Effect of Accounting
Change -- -- (34.9) --
Net (Loss) Income $(29.4) $(12.1) $.3 $172.9
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Millions, Except Per Share Data)
(Continued)
Twelve Months
Three Months Ended Ended
December 31 December 31
2002 2001 2002 2001
Per Share Data
Basic:
(Loss) income from continuing
operations before cumulative
effect
of accounting change $(.60) $(.25) $.59 $.15
Income from discontinued
operations -- -- .13 3.41
Income (Loss) before
cumulative effect of
accounting change (.60) (.25) .72 3.56
Cumulative effect of
accounting change -- -- (.72) --
Total $(.60) $(.25) $ -- $3.56
Average number of common shares
(in thousands) 48,980 48,689 48,889 48,512
Diluted:
(Loss) income from continuing
operations before cumulative
effect of accounting change $(.60) $(.25) $.59 $.15
Income from discontinued
operations -- -- .13 3.36
Income (Loss) before
cumulative effect of
accounting change (.60) (.25) .72 3.51
Cumulative effect of
accounting change -- -- (.72) --
Total $(.60) $(.25) $ -- $3.51
Average number of common
shares and common share
equivalents (in thousands) 48,980 48,689 49,177 49,202
Dividends declared per common share $.32 $.31 $1.28 $1.24
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In Millions)
December 31 December 31
2002 2001
Assets
Cash and Cash Equivalents $231.1 $222.9
Restricted Cash 140.9 134.4
Receivables
Rent and other receivables 121.1 144.2
Finance leases 714.1 868.3
Secured loans 465.3 557.4
Less - allowance for possible
losses (82.2) (94.2)
1,218.3 1,475.7
Operating Lease Assets, Facilities and
Other
Railcars and service facilities 3,111.4 2,958.2
Operating lease investments and
other 2,262.6 1,794.0
Less - allowance for depreciation (2,059.9) (2,028.3)
3,314.1 2,723.9
Progress payments for aircraft and
other equipment 140.9 281.1
3,455.0 3,005.0
Investments in Affiliated Companies 860.7 953.0
Income Taxes Receivable 129.8 34.1
Goodwill, Net of Accumulated
Amortization 62.5 63.3
Other Assets 370.9 255.4
$6,469.2 $6,143.8
Liabilities, Deferred Items and
Shareholders' Equity
Accounts Payable and Accrued Expenses $399.5 $364.5
Debt
Short-term 68.0 328.5
Long-term:
Recourse 3,474.5 2,916.1
Nonrecourse 594.6 709.4
Capital lease obligations 143.7 163.0
4,280.8 4,117.0
Deferred Income Taxes 640.0 464.5
Other Deferred Items 347.3 316.0
Total Liabilities and Deferred Items 5,667.6 5,262.0
Total Shareholders' Equity 801.6 881.8
$6,469.2 $6,143.8
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(In Millions)
Three Months
Ended Twelve Months Ended
December 31 December 31
2002 2001 2002 2001
Operating Activities
(Loss) income from continuing
operations $(29.4) $(12.1) $(5.9) $7.5
Adjustments to reconcile (loss)
income from continuing
operations to net cash provided
by continuing operations:
Realized gains on
remarketing of leased
equipment (9.5) (12.7) (40.8) (79.9)
Gain on sales of securities (.5) (3.6) (3.9) (38.7)
Depreciation and
amortization 92.1 100.9 368.1 415.9
Provision for possible
losses 7.3 36.5 36.6 98.4
Asset impairment charges 24.9 15.3 40.5 85.2
Deferred income taxes 8.7 13.4 130.7 126.9
Gain on extinguishment of
debt (2.1) -- (18.0) --
Cumulative effect of
accounting change -- -- 34.9 --
Reversal of litigation
provision -- -- -- (13.1)
Payments related to
litigation settlement -- -- -- (141.0)
Other, including changes in
net working capital 61.6 (17.3) (166.2) (104.1)
Net cash provided by
continuing operations 153.1 120.4 376.0 357.1
Investing Activities
Additions to equipment on lease,
net of nonrecourse financing
for leveraged leases, operating
lease assets and facilities (230.9) (108.9) (893.2) (841.0)
Secured loans extended (65.1) (51.8) (156.0) (305.5)
Investments in affiliated
companies (35.0) (31.9) (66.0) (249.4)
Progress payments (19.5) (116.8) (104.2) (300.1)
Other investments (33.9) (5.9) (52.4) (98.2)
Portfolio investments and capital
additions (384.4) (315.3) (1,271.8) (1,794.2)
Portfolio proceeds 223.6 251.4 946.5 1,031.4
Proceeds from other asset sales 5.4 4.4 17.4 207.1
Net cash used in investing
activities of
continuing operations (155.4) (59.5) (307.9) (555.7)
Financing Activities
Net proceeds from issuance of
long-term debt 213.4 307.0 1,518.1 788.9
Repayment of long-term debt (219.3) (230.4) (1,210.0) (1,018.2)
Net increase (decrease) in
short-term debt 13.1 53.8 (274.4) (228.7)
Net (decrease) increase in capital
lease obligations (1.6) 14.9 (22.1) (1.2)
Issuance of common stock and other 4.0 1.7 8.4 19.3
Cash dividends (15.6) (15.1) (62.5) (60.2)
Net cash (used in) provided by
financing activities of
continuing operations (6.0) 131.9 (42.5) (500.1)
Net Transfers to Discontinued
Operations (1.2) (1.4) (14.1) (30.7)
Net (Decrease) Increase in Cash
and Cash Equivalents from
Continuing Operations (9.5) 191.4 11.5 (729.4)
Proceeds from Sale of a Portion of
Segment -- -- 3.2 1,185.0
Taxes Paid on Gain from Sale of
Segment -- (133.7) -- (281.9)
Net Increase (Decrease) in Cash
and Cash Equivalents from
Discontinued Operations -- .3 -- (12.3)
Net (Decrease) Increase in Cash
and Cash Equivalents $(9.5) $58.0 $14.7 $161.4
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended December 31, 2002
(In Millions)
GATX FINANCIAL CORPORATE GATX
RAIL SERVICES AND OTHER CONSOLIDATED
Revenues
Lease Income $150.1 $100.0 $ -- $250.1
Marine Operating Income -- 26.0 -- 26.0
Interest Income -- 12.0 -- 12.0
Asset Remarketing Income .6 13.7 -- 14.3
Gain on Sale of Securities -- .5 -- .5
Fees -- 3.8 -- 3.8
Other 11.7 4.5 1.0 17.2
Total Revenues 162.4 160.5 1.0 323.9
Gain on Extinguishment of
Debt -- 1.0 1.1 2.1
Share of Affiliates'
Earnings (Loss) 4.4 (14.6) -- (10.2)
Total Gross Income 166.8 146.9 2.1 315.8
Depreciation and
Amortization 29.3 62.6 .2 92.1
Interest Expense, net 14.9 37.3 6.3 58.5
Operating Lease Expense 43.1 5.5 (.7) 47.9
Total Ownership Costs 87.3 105.4 5.8 198.5
Operating Expenses 45.1 21.7 -- 66.8
SG&A 18.4 26.4 3.8 48.6
Provision for Possible
Losses .5 6.8 -- 7.3
Asset Impairment Charges -- 24.9 -- 24.9
Reduction in Workforce
Charges 2.0 14.9 -- 16.9
Fair Value Adjustments for
Derivatives (.1) .6 -- .5
Total Other Costs and
Expenses 65.9 95.3 3.8 165.0
Income (Loss) from
Continuing Operations
before Income Taxes 13.6 (53.8) (7.5) (47.7)
Income Tax Provision
(Benefit) 7.3 (22.7) (2.9) (18.3)
Income (Loss) from
Continuing Operations 6.3 (31.1) (4.6) (29.4)
Discontinued Operations
Operating results, net of
taxes -- -- -- --
Gain on Sale, net -- -- -- --
Total Discontinued
Operations -- -- -- --
Net Income (Loss) $6.3 $(31.1) $(4.6) $(29.4)
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended December 31, 2001
(In Millions)
GATX FINANCIAL CORPORATE GATX
RAIL SERVICES AND OTHER CONSOLIDATED
Revenues
Lease Income $159.7 $113.1 $ -- $272.8
Marine Shipping Revenue -- 24.4 -- 24.4
Interest Income -- 15.9 -- 15.9
Asset Remarketing Income .5 13.3 -- 13.8
Gain on Sale of
Securities -- 3.6 -- 3.6
Fees -- 4.4 -- 4.4
Other 9.7 1.5 -- 11.2
Total Revenues 169.9 176.2 -- 346.1
Share of Affiliates'
Earnings (Loss) 2.3 (3.5) -- (1.2)
Total Gross Income 172.2 172.7 -- 344.9
Depreciation and
Amortization 30.4 69.3 1.2 100.9
Interest Expense, net 14.9 39.5 3.0 57.4
Operating Lease Expense 42.0 6.5 (2.2) 46.3
Total Ownership Costs 87.3 115.3 2.0 204.6
Operating Expenses 37.9 24.6 -- 62.5
SG&A 17.3 28.1 5.6 51.0
Provision for Possible
Losses .1 36.4 -- 36.5
Asset Impairment Charges -- 15.3 -- 15.3
Reduction in Workforce
Charges 5.3 5.6 2.5 13.4
Fair Value Adjustments for
Derivatives -- (1.8) -- (1.8)
Total Other Costs and
Expenses 60.6 108.2 8.1 176.9
Income (Loss) from
Continuing Operations
before Income Taxes 24.3 (50.8) (10.1) (36.6)
Income Tax Provision
(Benefit) 2.2 (21.0) (5.7) (24.5)
Income (Loss) from
Continuing Operations 22.1 (29.8) (4.4) (12.1)
Discontinued Operations
Operating results, net of
taxes -- -- -- --
Gain on Sale, net -- -- -- --
Total Discontinued
Operations -- -- -- --
Net Income (Loss) $22.1 $(29.8) $(4.4) $(12.1)
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Twelve Months Ended December 31, 2002
(In Millions)
GATX FINANCIAL CORPORATE DISCONTINUED GATX
RAIL SERVICES AND OTHER OPERATIONS CONSOLIDATED
Revenues
Lease Income $608.6 $407.4 $-- $-- $1,016.0
Marine Operating
Income -- 79.7 -- -- 79.7
Interest Income -- 56.0 -- -- 56.0
Asset Remarketing
Income 4.9 49.8 -- -- 54.7
Gain on Sale of
Securities -- 3.9 -- -- 3.9
Fees -- 14.2 -- -- 14.2
Other 46.8 10.4 -- -- 57.2
Total Revenues 660.3 621.4 -- -- 1,281.7
Gain on Extinguishment
of Debt -- 16.8 1.2 -- 18.0
Share of Affiliates'
Earnings 13.1 34.4 -- -- 47.5
Total Gross Income 673.4 672.6 1.2 -- 1,347.2
Depreciation and
Amortization 116.1 251.5 .5 -- 368.1
Interest Expense, net 62.7 147.0 21.4 -- 231.1
Operating Lease
Expense 172.3 16.0 (.4) -- 187.9
Total Ownership Costs 351.1 414.5 21.5 -- 787.1
Operating Expenses 167.3 66.7 -- -- 234.0
SG&A 72.6 98.7 18.3 -- 189.6
Provision for Possible
Losses 1.4 35.2 -- -- 36.6
Asset Impairment Charges -- 40.5 -- -- 40.5
Reduction in Workforce
Charges 2.0 14.9 -- 16.9
Fair Value Adjustments
for Derivatives .2 3.3 -- -- 3.5
Total Other Costs and
Expenses 243.5 259.3 18.3 -- 521.1
Income (Loss) from
Continuing Operations
before Income Taxes and
Cumulative Effect of
Accounting Change 78.8 (1.2) (38.6) -- 39.0
Income Tax Provision
(Benefit) 27.6 (4.4) (13.2) -- 10.0
Income (Loss) from
Continuing Operations
before Cumulative
Effect of
Accounting Change 51.2 3.2 (25.4) -- 29.0
Discontinued Operations
Operating results, net
of taxes -- -- -- -- --
Gain on Sale, net -- -- -- 6.2 6.2
Total Discontinued
Operations -- -- -- 6.2 6.2
Income (Loss) before
Cumulative Effect of
Accounting Change 51.2 3.2 (25.4) 6.2 35.2
Cumulative Effect of
Accounting Change (34.9) -- -- -- (34.9)
Net Income (Loss) $16.3 $3.2 $(25.4) $6.2 $.3
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Twelve Months Ended December 31, 2001
(In Millions)
GATX FINANCIAL CORPORATE DISCONTINUED GATX
RAIL SERVICES AND OTHER OPERATIONS CONSOLIDATED
Revenues
Lease Income $627.9 $512.4 $ -- $ -- $1,140.3
Marine Shipping
Revenue -- 77.7 -- -- 77.7
Interest Income -- 71.3 -- -- 71.3
Asset Remarketing
Income 2.9 96.1 -- -- 99.0
Gain on Sale of
Securities -- 38.7 -- -- 38.7
Fees -- 17.1 -- -- 17.1
Other 37.9 3.8 2.8 -- 44.5
Total Revenues 668.7 817.1 2.8 -- 1,488.6
Share of Affiliates'
Earnings 7.4 25.4 -- -- 32.8
Total Gross Income 676.1 842.5 2.8 -- 1,521.4
Depreciation and
Amortization 117.8 295.8 2.3 -- 415.9
Interest Expense, net 66.3 182.8 .8 -- 249.9
Operating Lease
Expense 163.9 28.8 2.1 -- 194.8
Total Ownership
Costs 348.0 507.4 5.2 -- 860.6
176.
Operating Expenses 3 64.8 -- -- 241.1
SG&A 83.3 127.7 18.7 -- 229.7
Provision for Possible
Losses .6 97.8 -- -- 98.4
Asset Impairment
Charges -- 85.2 -- -- 85.2
Reversal of Litigation
Provision -- (13.1) -- -- (13.1)
Reduction in Workforce
Charges 5.3 5.6 2.5 -- 13.4
Fair Value Adjustments
for Derivatives .6 (.1) -- -- .5
Total Other Costs
and Expenses 266.1 367.9 21.2 -- 655.2
Income (Loss) from
Continuing Operations
before Income Taxes 62.0 (32.8) (23.6) -- 5.6
Income Tax Provision
(Benefit) 17.9 (13.9) (5.9) -- (1.9)
Income (Loss) from
Continuing
Operations 44.1 (18.9) (17.7) -- 7.5
Discontinued
Operations
Operating results,
net of taxes -- -- -- 1.5 1.5
Gain on Sale, net -- -- -- 163.9 163.9
Total Discontinued
Operations -- -- -- 165.4 165.4
Net Income (Loss) $44.1 $(18.9) $(17.7) $165.4 $172.9
GATX CORPORATION AND SUBSIDIARIES
CREDIT STATISTICS
(In Millions, Except Railcar Data)
12/31/2002 12/31/2001
Total Assets, Excluding Cash (a) $7,463.0 $7,160.2
Reservable Assets 1,300.5 1,569.9
Financial Services Investments 2,932.4 2,870.8
Allowance for Losses 82.2 94.2
Allowance for Losses as a
Percentage of Reservable Assets 6.3 % 6.0 %
Net Charge-Offs and Asset
Impairments and Write-Downs 94.4 187.8
Net Charge-Offs/Impairments/Write-Downs
as a Percentage of Average Total Assets 1.3 % 2.6 %
Non-performing Investments 94.9 96.4
Non-performing Investments as a
Percentage of Financial
Services' Investments 3.2 % 3.4 %
Capital Structure
Short-term Debt, Net of
Unrestricted Cash (163.1) 105.6
Long-term Debt:
On Balance Sheet
Recourse 3,474.5 2,916.1
Non-recourse 594.6 709.4
Off Balance Sheet
Recourse 1,044.3 1,040.3
Non-recourse 321.5 333.4
Capital Lease Obligations 143.7 163.0
Total Debt Obligations 5,415.5 5,267.8
Total Recourse Debt 4,499.4 4,225.0
Shareholders' Equity and Allowance
for Losses 883.8 976.0
Recourse Leverage 5.1 4.3
Asset Remarketing Income
Disposition gains on owned
assets 40.8 79.9
Residual sharing fees 13.9 19.1
54.7 99.0
Portfolio Pre-Tax Spread Financial
Services
Lease Income 407.4 512.4
Interest Income 56.0 71.3
Share of Affiliates' Earnings 34.4 25.4
Interest Expense (141.8) (177.2)
Operating Lease Expense and
Depreciation (248.9) (298.3)
Total Portfolio Pre-tax Spread 107.1 133.6
Total Portfolio Pre-tax Spread as a
Percentage
of Financial Services'
Investments 3.7 % 4.7 %
Railcar Data
North American Fleet Utilization 91 % 91 %
Beginning Fleet Size 110,201 109,693
Additions 3,794 1,693
Scrappings (6,845) (1,185)
Ending Fleet Size 107,150 110,201
(a) Includes Off Balance Sheet Assets
SOURCE GATX Corporation
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Related links:
http://www.gatx.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/105121.html
CONTACT:
Robert C. Lyons of GATX Corporation,
+1-312-621-6633
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