CHICAGO, July 23 /PRNewswire-FirstCall/ -- GATX Corporation (NYSE: GMT)
today announced its 2002 second quarter results, reporting net income of
$20.4 million or $.42 per diluted share compared to net income of
$21.6 million or $.44 per diluted share in the prior year period. Excluding
non-comparable items, second quarter 2001 income would have been $41.0 million
or $.83 per diluted share.
For the six month period ending June 30, 2002, GATX reported net
income of $45.5 million or $.92 per diluted share compared to net income of
$192.3 million or $3.90 per diluted share in the prior year. Excluding
non-comparable items, income for the six month period ending June 30 was
$39.3 million or $.80 per diluted share compared to $71.4 million or $1.45 per
diluted share in the prior year period. Non-comparable items as referenced in
this press release include items such as gains on the sale of GATX
Terminals-related assets, telecommunications-related charges and costs
associated with the closing of a railcar repair facility in the first half of
2001, and any goodwill adjustment as required to be recognized in the current
year under FAS 142.
Ronald H. Zech, chairman and CEO of GATX, stated, "Consistent with the
recent quarters, we continue to experience weak conditions in our primary
markets which are negatively affecting lease revenue and new investment
volume. In addition, we continue to maintain a high liquidity position in
response to volatile capital market conditions, and this is negatively
affecting our 2002 net income. Pressures in the operating and capital markets
were partially mitigated by lower selling, general, and administrative
expenses, and a successful effort to improve operating efficiency.
"In Rail, fleet utilization is flat and the pricing environment continues
to be very competitive. Economic indicators and traffic trends in the rail
industry are turning up, but this has not yet translated into improved
conditions in the market. In addition to continued pressure on lease rates,
new car demand remains soft, as customers have been hesitant to make long-term
commitments for new equipment.
"Conditions in the air business have improved following the post-September
11th turmoil, however, air carriers continue to face financial challenges.
Lease rate pressure continues across the industry, although the relative
performance of our air portfolio has been excellent. We have leased or
received letters of intent on all of our 2002 new aircraft deliveries and all
of our 2002 renewals. With our 2002 delivery and renewal schedule complete,
we have turned our attention to 2003 where we have already obtained letters of
intent from carriers for three of our six new deliveries.
"Our technology leasing business is experiencing market dynamics that
mirror those in our rail business: economic indicators are turning positive,
but new investment volume has yet to respond. Our second quarter technology
investment volume was stable with prior quarters, however, corporate IT
spending programs have not generated meaningful volume growth.
"In addition to ongoing market softness, which continues to suppress lease
revenues, investment volume, and remarketing opportunities, our current EPS
outlook reflects two other factors. First, our decision to maintain a high
liquidity position will negatively impact our 2002 EPS by approximately
$.10-$.15 per diluted share. Second, as disclosed earlier in the second
quarter, we are in the process of complying with a Federal Railroad
Administration order related to a limited number of older GATX-built railcars.
The impact of this order, in the form of inspection costs and lost revenue, is
expected to negatively impact 2002 EPS by approximately $.10 - $.15 per
diluted share.
"We previously indicated that due to current operating and capital market
conditions, achieving our original 2002 EPS target of $2.00-$2.20 per share
presented a significant challenge. Based on continued weakness in our end
markets and the above-mentioned factors, we now expect 2002 EPS, excluding
non-comparable items, to be in the range of $1.50-$1.70 per diluted share."
Mr. Zech concluded, "Although the current environment is challenging,
there are several factors underlying the optimism we have regarding our
long-term outlook. As noted, general economic indicators have turned up and
the key variables we track in the rail industry, including chemical demand,
chemical shipments, and manufacturing capacity utilization, have shown signs
of recovering from a downturn. To the extent that these positive trends
continue, we are confident that this will result in renewed demand for
railcars and stronger lease pricing.
"Additionally, we have addressed many of the uncertainties that surrounded
our air business following September 11th. We have financed new deliveries at
attractive rates, utilization across our portfolio remains very high, and our
aircraft portfolio has proven to be one of the most resilient in the industry.
We are also well positioned to enhance growth in our core markets through
portfolio acquisitions. During the second quarter, we acquired 2,700 railcars
in an attractive transaction for GATX, and we are actively pursuing other
portfolio acquisition opportunities. Lastly, by reducing costs and improving
operating efficiency, we have established the foundation for substantial
earnings leverage when our underlying markets rebound."
FINANCIAL SERVICES
Financial Services reported second quarter net income of $15.1 million
compared to $13.5 million in the prior year period. For the six month period
ending June 30, Financial Services' reported net income of $22.1 million
compared to $24.2 million in the prior year period. Excluding non-comparable
items from the 2001 results, second quarter and year-to-date income was
$32.0 million and $52.5 million, respectively. On a comparable basis, the
decrease in 2002 income was driven by lower net lease revenues, asset
remarketing and warrant gains, partially offset by stronger joint venture
income and lower SG&A expenses.
Investment volume in the second quarter totaled $324 million compared to
$336 million in the prior year period. Year to date, investment volume
totaled $632 million compared to $824 million in the prior year period. The
prior year included $130 million related to the acquisition of the El Camino
technology portfolio. The 2002 year-to-date investment volume includes
$349 million of air investments, reflecting the company's scheduled deliveries
of new A320 and B737 aircraft.
Pre-tax spread totaled $40.2 million in the second quarter compared to
$42.4 million in the prior year period. Annualized pre-tax spread in the
second quarter was 5.5% of average investments, level with the prior year
period and up from 4.6% in the 2002 first quarter. Increased joint venture
income and net operating lease income, primarily associated with new aircraft
deliveries, led to the increase compared to the first quarter.
Remarketing income, comprised of both gains on asset sales and
residual sharing fees, was $18.3 million in the second quarter compared to
$49.2 million in the prior year period. The 2001 second quarter remarketing
gains were particularly high due to secondary market activity in the air and
specialty sectors. Year to date, 2002 remarketing income totaled
$25.9 million compared to $63.0 million in the prior year period. Warrant
income, which was a significant contributor to the 2001 second quarter results
with $12.3 million of gains, was negligible in the 2002 second quarter and on
a year-to-date basis.
Consistent with ongoing efforts to improve operating efficiency and reduce
expenditures, Financial Services' 2002 second quarter and year-to-date SG&A
expenses totaled $25.1 million and $46.8 million respectively, compared to
$38.8 million and $71.1 million in the prior year comparative periods.
GATX RAIL
GATX Rail reported net income of $12.2 million in the second quarter, flat
with the prior year period. For the six month period ending June 30, GATX
Rail reported net income of $30.2 million compared to $8.9 million in the
prior year period. Excluding non-comparable items from the 2001 six month
results, income was $25.1 million. The primary driver behind the
year-over-year improvement in six month results is related to strong
remarketing gains reported in the 2002 first quarter. A substantial reduction
in SG&A expenditures has also served to offset ongoing lease rate and
utilization pressures.
Utilization of GATX Rail's North American fleet was 92% at the end of the
second quarter, flat with the prior year period and up from 91% at the end of
the first quarter. The slight increase in second quarter utilization is
primarily related to the Federal Railroad Administration order and the
deployment of existing idle cars to replace affected cars. Absent this
activity, second quarter utilization remained flat with first quarter levels.
GATX Rail's North American fleet totaled 132,000 cars at the end of the second
quarter, essentially flat with the end of the first quarter.
The most recent report on North American manufacturing capacity
utilization, one of several benchmarks for economic activity and ultimately
demand for railcars, indicated that manufacturing plants are operating at 76%
of capacity, up from 74% at the end of the first quarter. Additionally,
chemical railcar shipments have started to increase, although marginally, on a
year-over-year basis. These positive trends, however, have not yet resulted
in new car orders as railcar manufacturers continue to report low
manufacturing backlogs.
CONSOLIDATED CREDIT STATISTICS
The company continues to maintain an overall allowance position at the
high end of its stated comfort range of 4.0%-6.5%. At the end of the second
quarter, the allowance for losses was 6.5% of reservable assets compared to
6.0% at the end of 2001 and 6.4% at the end of the first quarter.
Net charge-offs and impairments totaled $19.1 million during the second
quarter, or 1.0% of average total assets on an annualized basis. In the prior
year period, net charge-offs and impairments totaled $44.6 million, or 2.4% of
average total assets on an annualized basis. For the six month period ending
June 30, net charge-offs and impairments totaled $41.2 million (1.1%) compared
to $74.6 million (2.1%) in the prior year period.
Non-performing leases and loans totaled $134.5 million or 4.6% of
Financial Services' investments compared to $96.4 million (3.4%) at the end of
2001 and $95.2 million (3.1%) in the prior year period. The increase in non-
performing leases and loans is driven by one airline credit that GATX has
opted to place on non-performing status. Absent this account, non-performing
leases and loans would have decreased marginally from year-end and prior
period levels.
COMPANY DESCRIPTION
GATX Corporation (NYSE: GMT) is a specialized finance and leasing company.
It uniquely combines 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, information technology leasing, venture finance
and specialty finance.
TELECONFERENCE INFORMATION
GATX Corporation will host a teleconference to discuss second quarter
results. Teleconference details are as follows:
Tuesday, July 23rd
11:00 AM Eastern Time
Domestic Dial-In: 1-888-639-6205
International Dial-In: 1-952-556-2846
Replay: 1-800-475-6701 / Access Code: 645036
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.
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; competitors in the rail and air markets who may have access to
capital at lower costs that GATX; additional potential write-downs and/or
provisions within GATX's portfolio; and general market conditions in the rail,
air, technology, venture, and other large-ticket industries.
Investor, corporate information and press releases may be found at
http://www.gatx.com. A variety of current financial information, historical
financial information, press releases and photographs are available at this
site.
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In Millions, Except Per Share Amounts)
Three Months Ended Six Months Ended
June 30 June 30
2002 2001 2002 2001
Gross Income
Revenues $ 331.5 $ 422.6 $634.3 $778.6
Gain on extinguishment of debt(a) 0.6 -- 14.5 --
Share of affiliates' earnings 21.8 14.6 39.8 29.1
Total Gross Income 353.9 437.2 688.6 807.7
Ownership Costs
Depreciation and amortization 92.1 109.4 185.0 212.1
Interest, net 57.8 68.0 113.2 129.0
Operating lease expense 48.5 48.4 92.4 96.7
Total Ownership Costs 198.4 225.8 390.6 437.8
Other Costs and Expenses
Operating expenses 59.1 61.0 104.7 124.1
Selling, general and administrative 49.2 66.3 93.6 123.6
Provision for possible losses 9.2 16.2 26.9 37.5
Asset impairment charges 3.8 30.6 6.4 30.6
Fair value adjustments for derivatives 2.4 (0.7) 3.7 0.4
Total Other Costs and Expenses 123.7 173.4 235.3 316.2
Income from Continuing Operations
Before Income Taxes 31.8 38.0 62.7 53.7
Income Tax Provision 11.4 15.5 23.4 26.8
Income from Continuing Operations 20.4 22.5 39.3 26.9
Discontinued Operations
Operating results, net of taxes -- (0.9) -- 1.5
Gain on sale of portion of
segment, net of taxes -- -- 6.2 163.9
Total Discontinued Operations -- (0.9) 6.2 165.4
Net Income $20.4 $21.6 $45.5 $192.3
Per Share Data
Basic:
Income from continuing operations $.42 $.46 $.81 $.56
(Loss) income from
discontinued operations -- (.01) .12 3.41
Total $.42 $.45 $.93 $3.97
Average number of common shares
(in thousands) 48,866 48,495 48,825 48,378
Diluted:
Income from continuing operations $.42 $.46 $.80 $.55
(Loss) income from
discontinued operations -- (.02) .12 3.35
Total $.42 $.44 $.92 $3.90
Average number of common shares
and common share
equivalents (in thousands) 49,258 49,287 49,196 49,314
Dividends declared per common share $.32 $.31 $.64 $.62
(a) Represents gain on extinguishment of non-recourse debt related to
transactions for which a provision for possible loss or an asset
impairment charge was recorded.
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In Millions)
June 30 December 31
2002 2001
Assets
Cash and Cash Equivalents $320.1 $222.9
Restricted Cash 161.2 124.4
Receivables
Rent and other receivables 146.2 144.2
Finance leases 767.5 868.3
Secured loans 498.5 557.4
Less - allowance for possible losses (91.1) (94.2)
1,321.1 1,475.7
Operating Lease Assets, Facilities and Other
Railcars and service facilities 2,957.3 2,958.2
Operating lease investments and other 2,114.3 1,794.0
Less - allowance for depreciation (2,058.1) (2,028.3)
3,013.5 2,723.9
Progress Payments for aircraft and other equipment 157.4 260.0
3,170.9 2,983.9
Investments in Affiliated Companies 948.4 953.0
Goodwill, Net of Accumulated Amortization 74.0 63.3
Other Assets 376.9 286.5
$ 6,372.6 $ 6,109.7
Liabilities, Deferred Items and Shareholders' Equity
Accounts Payable $283.9 $293.6
Accrued Expenses 21.2 36.8
Debt
Short-term 41.8 328.5
Long-term:
Recourse 3,478.6 2,897.3
Nonrecourse 667.8 728.2
Capital lease obligations 148.1 163.0
4,336.3 4,117.0
Deferred Income Taxes 518.9 464.5
Other Deferred Items 319.8 316.0
Total Liabilities and Deferred Items 5,480.1 5,227.9
Total Shareholders' Equity 892.5 881.8
$ 6,372.6 $ 6,109.7
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Millions)
Three Months Ended Six Months Ended
June 30 June 30
2002 2001 2002 2001
Operating Activities
Income from continuing operations $20.4 $22.5 $39.3 $26.9
Adjustments to reconcile income
from continuing operations to
net cash provided by
continuing operations:
Realized gains on remarketing
of leased equipment (17.6) (41.0) (27.4) (49.5)
Gains on sales of securities (0.6) (12.3) (1.1) (27.6)
Depreciation and amortization 92.1 109.4 185.0 212.1
Provision for possible losses 9.2 16.2 26.9 37.5
Asset impairment charges 3.8 30.6 6.4 30.6
Deferred income taxes 25.8 5.9 38.1 110.0
Gain on extinguishment of debt (0.6) -- (14.5) --
Payments related to
litigation settlement -- (2.4) -- (96.4)
Other, including working capital 3.9 37.2 (85.4) (48.8)
Net cash provided by
continuing operations 136.4 166.1 167.3 194.8
Investing Activities
Additions to equipment on lease,
net of nonrecourse financing for
leveraged leases, operating
lease assets and facilities (250.0) (198.6) (513.6) (503.6)
Secured loans extended (43.5) (122.9) (55.3) (203.4)
Investments in affiliated companies (12.3) (38.7) (26.6) (155.2)
Progress payments (28.4) (48.4) (58.9) (82.5)
Other investments (15.2) (8.2) (16.6) (112.4)
Portfolio investments and
capital additions (349.4) (416.8) (671.0) (1,057.1)
Portfolio proceeds 209.8 277.4 480.6 525.8
Proceeds from other asset sales 1.8 191.4 4.8 196.4
Net cash (used in) provided by
investing activities of
continuing operations (137.8) 52.0 (185.6) (334.9)
Financing Activities
Proceeds from issuance of
long-term debt 585.0 330.0 1,161.1 392.0
Repayment of long-term debt (353.2) (347.9) (671.4) (651.9)
Net decrease in short-term debt (43.7) (416.8) (286.7) (372.3)
Repayment of capital
lease obligations (2.9) (3.1) (14.9) (11.3)
Issuance of common stock and other 2.8 2.4 4.3 14.1
Cash dividends (15.6) (15.1) (31.2) (30.1)
Net cash provided by (used in)
financing activities of
continuing operations 172.4 (450.5) 161.2 (659.5)
Net Transfers from (to)
Discontinued Operations 1.5 -- (12.1) (7.6)
Net Increase (Decrease) in Cash
and Cash Equivalents from
Continuing Operations 172.5 (232.4) 130.8 (807.2)
Proceeds from Sale of
Portion of Segment -- 115.7 3.2 1,144.1
Taxes Paid on Gain from Sale of Segment -- (148.2) -- (148.2)
Net Decrease in Cash and
Cash Equivalents from
Discontinued Operations -- -- -- (12.6)
Net Increase (Decrease) in
Cash and Cash Equivalents $172.5 $(264.9) $134.0 $176.1
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended June 30, 2002
(In Millions)
GATX FINANCIAL CORPORATE DISCONTINUED GATX
RAIL SERVICES AND OTHER OPERATIONS CONSOLIDATED
Revenues
Lease Income $155.0 $105.9 $-- $-- $260.9
Marine Shipping
Revenue -- 22.8 -- -- 22.8
Interest Income -- 13.2 -- -- 13.2
Asset Remarketing
Income 0.2 18.3 -- -- 18.5
Gain on Sale
of Securities -- 0.6 -- -- 0.6
Fees -- 3.3 -- -- 3.3
Other 8.3 4.0 (0.1) -- 12.2
Total Revenues 163.5 168.1 (0.1) -- 331.5
Gain on
Extinguishment
of Debt -- 0.6 -- -- 0.6
Share of Affiliates'
Earnings 2.3 19.5 -- -- 21.8
Total Gross Income 165.8 188.2 (0.1) -- 353.9
Depreciation and
Amortization 29.0 62.8 0.3 -- 92.1
Interest
Expense, net 16.2 37.1 4.5 -- 57.8
Operating Lease
Expense 43.4 5.0 0.1 -- 48.5
Total Ownership
Costs 88.6 104.9 4.9 -- 198.4
Operating Expenses 40.4 18.7 -- -- 59.1
SG&A 18.6 25.1 5.5 -- 49.2
Provision for
Possible Losses 0.3 8.9 -- -- 9.2
Asset Impairment
Charges -- 3.8 -- -- 3.8
Other Expenses (0.1) 2.5 -- -- 2.4
Total Other Costs
and Expenses 59.2 59.0 5.5 -- 123.7
Income (Loss) from
Continuing
Operations before
Income Taxes 18.0 24.3 (10.5) -- 31.8
Income Tax
Expense (Benefit) 5.8 9.2 (3.6) -- 11.4
Income (Loss) from
Continuing
Operations 12.2 15.1 (6.9) -- 20.4
Discontinued Operations
Operating results,
net of taxes -- -- -- -- --
Gain on Sale, net -- -- -- -- --
Total Discontinued
Operations -- -- -- -- --
Net Income (Loss) $12.2 $15.1 $(6.9) $-- $20.4
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended June 30, 2001
(In Millions)
GATX FINANCIAL CORPORATE DISCONTINUED GATX
RAIL SERVICES AND OTHER OPERATIONS CONSOLIDATED
Revenues
Lease Income $160.1 $140.4 $-- $-- $300.5
Marine Shipping
Revenue -- 25.2 -- -- 25.2
Interest Income -- 17.9 -- -- 17.9
Asset Remarketing
Income 1.1 49.2 -- -- 50.3
Gain on Sale
of Securities -- 12.3 -- -- 12.3
Fees -- 4.6 -- -- 4.6
Other 9.9 1.2 0.7 -- 11.8
Total Revenues 171.1 250.8 0.7 -- 422.6
Share of Affiliates'
Earnings 2.5 12.1 -- -- 14.6
Total Gross Income 173.6 262.9 0.7 -- 437.2
Depreciation and
Amortization 29.2 79.5 0.7 -- 109.4
Interest Expense, net 18.3 49.9 (0.2) -- 68.0
Operating
Lease Expense 40.2 7.4 0.8 -- 48.4
Total Ownership Costs 87.7 136.8 1.3 -- 225.8
Operating Expenses 41.6 19.2 0.2 -- 61.0
SG&A 23.7 38.8 3.8 -- 66.3
Provision for
Possible Losses 0.2 16.0 -- -- 16.2
Asset Impairment
Charges -- 30.6 -- -- 30.6
Other Expenses 0.1 (0.8) -- -- (0.7)
Total Other Costs
and Expenses 65.6 103.8 4.0 -- 173.4
Income (Loss) from
Continuing Operations
before Income Taxes 20.3 22.3 (4.6) -- 38.0
Income Tax
Expense (Benefit) 8.1 8.8 (1.4) -- 15.5
Income (Loss)
from Continuing
Operations 12.2 13.5 (3.2) -- 22.5
Discontinued Operations
Operating results,
net of taxes -- -- -- (0.9) (0.9)
Gain on Sale, net -- -- -- -- --
Total Discontinued
Operations -- -- -- (0.9) (0.9)
Net Income (Loss) $12.2 $13.5 $(3.2) $(0.9) $21.6
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Six Months Ended June 30, 2002
(In Millions)
GATX FINANCIAL CORPORATE DISCONTINUED GATX
RAIL SERVICES AND OTHER OPERATIONS CONSOLIDATED
Revenues
Lease Income $311.9 $204.6 $-- $-- $516.5
Marine Shipping
Revenue -- 24.7 -- -- 24.7
Interest Income -- 28.6 -- -- 28.6
Asset Remarketing
Income 3.9 25.9 -- -- 29.8
Gain on Sale
of Securities -- 1.1 -- -- 1.1
Fees -- 7.9 -- -- 7.9
Other 20.5 5.9 (0.7) -- 25.7
Total Revenues 336.3 298.7 (0.7) -- 634.3
Gain on
Extinguishment
of Debt -- 14.5 -- -- 14.5
Share of Affiliates'
Earnings 6.0 33.8 -- -- 39.8
Total Gross Income 342.3 347.0 (0.7) -- 688.6
Depreciation and
Amortization 57.9 126.5 0.6 -- 185.0
Interest Expense, net 32.9 72.2 8.1 -- 113.2
Operating
Lease Expense 86.5 5.7 0.2 -- 92.4
Total Ownership
Costs 177.3 204.4 8.9 -- 390.6
Operating Expenses 81.2 23.5 -- -- 104.7
SG&A 36.9 46.8 9.9 -- 93.6
Provision for
Possible Losses 0.6 26.3 -- -- 26.9
Asset Impairment
Charges -- 6.4 -- -- 6.4
Other Expenses (0.2) 3.9 -- -- 3.7
Total Other Costs
and Expenses 118.5 106.9 9.9 -- 235.3
Income (Loss) from
Continuing Operations
before Income Taxes 46.5 35.7 (19.5) -- 62.7
Income Tax
Expense (Benefit) 16.3 13.6 (6.5) -- 23.4
Income (Loss)
from Continuing
Operations 30.2 22.1 (13.0) -- 39.3
Discontinued Operations
Operating results,
net of taxes -- -- -- -- --
Gain on Sale, net -- -- -- 6.2 6.2
Total Discontinued
Operations -- -- -- 6.2 6.2
Net Income (Loss) $30.2 $22.1 $(13.0) $6.2 $45.5
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Six Months Ended June 30, 2001
(In Millions)
GATX FINANCIAL CORPORATE DISCONTINUED GATX
RAIL SERVICES AND OTHER OPERATIONS CONSOLIDATED
Revenues
Lease Income $312.1 $277.2 $-- $-- $589.3
Marine Shipping
Revenue -- 28.1 -- -- 28.1
Interest Income -- 37.4 -- -- 37.4
Asset Remarketing
Income 1.7 63.0 -- -- 64.7
Gain on Sale
of Securities -- 27.6 -- -- 27.6
Fees -- 8.5 -- -- 8.5
Other 20.0 2.4 0.6 -- 23.0
Total Revenues 333.8 444.2 0.6 -- 778.6
Share of Affiliates'
Earnings 4.5 24.6 -- -- 29.1
Total Gross Income 338.3 468.8 0.6 -- 807.7
Depreciation and
Amortization 57.5 153.3 1.3 -- 212.1
Interest
Expense, net 36.3 99.9 (7.2) -- 129.0
Operating
Lease Expense 79.4 15.7 1.6 -- 96.7
Total Ownership
Costs 173.2 268.9 (4.3) -- 437.8
Operating Expenses 102.9 21.0 0.2 -- 124.1
SG&A 44.8 71.1 7.7 -- 123.6
Provision for
Possible Losses 0.3 37.2 -- -- 37.5
Asset Impairment
Charges -- 30.6 -- -- 30.6
Other Expenses 0.5 (0.1) -- -- 0.4
Total Other Costs
and Expenses 148.5 159.8 7.9 -- 316.2
Income (Loss) from
Continuing Operations
before Income Taxes 16.6 40.1 (3.0) -- 53.7
Income Tax Expense 7.7 15.9 3.2 -- 26.8
Income (Loss)
from Continuing
Operations 8.9 24.2 (6.2) -- 26.9
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) $8.9 $24.2 $(6.2) $165.4 $192.3
GATX CORPORATION AND SUBSIDIARIES
CREDIT STATISTICS
2Q02 12/31/01 2Q01
Total Assets, Excluding Cash(a) $ 7,449.6 $ 7,369.1 $ 7,431.3
Reservable Assets 1,412.2 1,569.9 1,742.8
Financial Services Investments 2,933.3 2,839.7 3,084.3
Allowance for Losses 91.1 94.2 111.0
Allowance for Losses as a
Percentage of Reservable Assets 6.5% 6.0% 6.4%
Net Charge-Offs and Asset
Impairments and Write-Downs 19.1 44.6
Net Charge-Offs/Impairments/
Write-Downs as a Percentage
of Average Total Assets 1.0% 2.4%
Non-performing Investments 134.5 96.4 95.2
Non-performing Investments
as a Percentage of Financial
Services' Investments 4.6% 3.4% 3.1%
Capital Structure
Short-term Debt, Net of
Unrestricted Cash (278.3) 105.6 (158.6)
Long-term Debt:
On Balance Sheet
Recourse 3,478.6 2,897.3 2,955.6
Nonrecourse 667.8 728.2 639.0
Off Balance Sheet
Recourse 1,149.2 1,183.2 1,199.8
Nonrecourse 409.1 423.5 416.3
Capital Lease Obligations 148.1 163.0 152.9
Total Net Debt Obligations 5,574.5 5,500.8 5,205.0
Total Net Recourse Debt 4,497.6 4,349.1 4,149.7
Shareholders' Equity and
Allowance for Losses 983.6 976.0 1,066.5
Recourse Leverage 4.6 4.5 3.9
Asset Remarketing Income
Disposition gains on owned assets 17.6 41.0
Residual sharing fees 0.9 9.3
18.5 50.3
Portfolio Pre-Tax Spread
Lease Income 105.9 140.3
Interest Income 13.2 17.9
Share of Affiliates' Earnings 19.5 12.1
Interest Expense (35.4) (48.0)
Operating Lease Expense
and Depreciation (63.0) (79.9)
Total Portfolio Pre-tax Spread 40.2 42.4
Total Portfolio Pre-tax Spread
as a Percentage of Financial
Services' Investments 5.5% 5.5%
Rail Car Data
North American Fleet Utilization 92% 92%
Beginning Fleet Size 130,829 130,742
Additions 2,743 1,249
Scrappings (1,992) (1,081)
Ending Fleet Size 131,580 130,910
(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/comp/105121.html
CONTACT:
Robert C. Lyons of GATX Corporation,
+1-312-621-6633
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