- 2002 Third Quarter Net Income Totals $.39 Per Diluted Share
CHICAGO, Oct. 24 /PRNewswire-FirstCall/ -- GATX Corporation (NYSE: GMT)
today announced its 2002 third quarter results, reporting net income of
$19.1 million or $.39 per diluted share compared to a net loss of $7.3 million
or a loss of $.15 per diluted share in the prior year period. Income in the
2001 third quarter, excluding non-comparable items, was $18.8 million or
$.38 per diluted share.
For the nine-month period ending September 30, 2002, GATX reported net
income of $29.7 million or $.61 per diluted share compared to net income of
$185.0 million or $3.75 per diluted share in the prior year. Excluding
non-comparable items in each period, income for the 2002 nine-month period was
$58.4 million or $1.20 per diluted share compared to $100.3 million or
$2.03 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 in both periods;
telecommunications-related charges and costs associated with the closing of a
railcar repair facility in 2001; and charges related to goodwill impairment
under SFAS 142 in 2002. As previously disclosed, in the 2002 second quarter
GATX completed the first phase of a goodwill impairment test and determined
that the carrying value of DEC, its railcar leasing unit based in Poland, was
in excess of its fair value. GATX completed the transitional goodwill
impairment test for DEC in the 2002 third quarter and as a result recorded a
one-time, non-cash impairment charge totaling $35 million. The write-down of
goodwill will be recognized as a cumulative effect of an accounting change as
of January 1, 2002 and will be included as part of year-to-date results,
without restating first or second quarter earnings.
Ronald H. Zech, chairman and CEO of GATX, stated, "Current economic
conditions continue to present GATX with operating challenges. Uncertainty
around the current economic outlook is leading customers in our core markets
to maintain a very conservative posture, thereby limiting new investment
volume and placing lease rates on existing equipment under pressure. Our
third quarter and year-to-date results reflect these conditions.
"The underlying fundamentals in the rail business remain relatively
unchanged from prior quarters. The absence of a material economic recovery is
negatively impacting our customers, resulting in continued lease rate pressure
and lower lease revenues. Our near-term focus in this environment is on
maintaining utilization and achieving peak operational efficiency. Despite
current conditions, there are some positive signs in the market: the number
and quality of order inquiries at GATX has increased; railcar manufacturing
backlogs have ticked upward; and interest in rail transactions in the
secondary market has intensified. While these factors cannot temper the
current revenue decline we are experiencing, they are positive long-term
indicators. Consistent with these indications, GATX recently completed a
multi-year new car order, capitalizing on attractive new car acquisition
prices and ensuring that we will meet the needs of our customers.
"Due to attention generated by the difficulties facing certain North
American air carriers and the air industry in general, aircraft lessors have
faced increased scrutiny regarding their portfolios. The quality of our
portfolio is a positive differentiating factor for GATX and our air group
continues to perform admirably. We have maintained utilization at or above
pre-9/11 levels, all 2002 deliveries have been placed, and progress on the
2003 delivery schedule has been excellent. While no lessor is immune to
developments affecting the air industry, we have proven that our portfolio is
well-suited to meet these challenges.
"Regarding operating efficiency, we have made progress on this front
throughout the year. While reducing SG&A by over 20% on a year-to-date basis,
we have also taken steps to ensure that we maintain our ability to capitalize
on opportunities in our core markets when underlying conditions improve.
"We remain focused on achieving our 2002 operating EPS guidance of
$1.50-$1.70 per share, although reaching this target could prove difficult
given current conditions. Continued economic uncertainty is having an impact
on our customer base, and this will continue to present GATX with operating
challenges. In keeping with past practice, we currently expect to provide our
2003 outlook in conjunction with our 2002 year-end results. However, it
appears that the conditions we currently face in our core markets will persist
into 2003. We are closely analyzing and addressing each of the controllable
variables in our business. However, a primary driver of our business is the
economic environment, and the point at which a material recovery occurs in our
core markets is difficult to predict at this time."
Mr. Zech concluded, "Our focus today remains largely unchanged from recent
quarters: by taking appropriate steps, we are positioning GATX for solid
long-term results when the underlying conditions in our end markets improve.
We have an excellent base of long-lived assets, leading market positions, and
a commitment to customer service -- all supported by the highest quality
people. These core characteristics will not be altered by difficult or
volatile market conditions, and they will enhance our performance in the
future."
FINANCIAL SERVICES
Financial Services reported third quarter net income of $12.2 million
compared to a loss of $13.3 million in the prior year period. For the nine
months ended September 30, Financial Services reported net income of
$34.3 million compared to $10.9 million in the prior year period. Excluding
non-comparable items from 2001 results, third quarter and year-to-date income
was $12.8 million and $65.3 million, respectively.
Investment volume in the third quarter totaled $197 million compared to
$323 million in the prior year period. Year-to-date investment volume totaled
$829 million compared to $1.1 billion in the prior year period. The 2002
year-to-date investment volume includes approximately $400 million of air
investments, reflecting the Company's scheduled deliveries of new A320 and
B737-800 aircraft. The second largest contributor to volume was the
technology leasing business, with approximately $190 million year to date.
Pre-tax spread at GATX Capital totaled $36 million in the third quarter
compared to $31 million in the prior year period. Pre-tax spread in the prior
year third quarter was negatively affected by $15 million of expense
associated with impairments recorded within telecommunications affiliates.
Annualized pre-tax spread in the 2002 third quarter was 5.0% of average
investments, compared to the 3.8% in the prior year period and 5.5% in the
2002 second quarter. Compared to the 2002 second quarter, the pre-tax spread
percentage reflects comparatively lower lease revenues on existing assets and
the addition of new air assets at lower yields.
Remarketing income, comprised of both gains on asset sales and residual
sharing fees, was $10 million in the third quarter compared to $20 million in
the prior year period. The 2002 third quarter gains were driven primarily by
residual sharing fees generated on asset sales for third parties. Year to
date, 2002 remarketing income totaled $36 million compared to $83 million in
the prior year period. The 2001 gains were heavily weighted toward air and
specialty portfolios.
GATX RAIL
GATX Rail reported net income of $14.7 million in the 2002 third quarter
compared to $13.1 million in the prior year period. For the nine-month period
ending September 30, GATX Rail reported net income of $10.0 million compared
to $22.0 million in the prior year period. Excluding non-comparable items in
both periods, 2002 nine-month income was $44.9 million compared to
$38.2 million in the prior year period.
The primary drivers behind the year-over-year improvement in nine-month
results were strong remarketing gains reported in the 2002 first quarter, a
substantial reduction in SG&A expenditures, and a lower effective tax rate
driven by certain tax-exempt income related to railcars on lease outside the
U.S. These factors have served to more than offset lower utilization and
lease rate pressure, both of which have resulted in declining lease revenue.
Utilization of GATX Rail's North American fleet was 91% at the end of the
third quarter, flat with the prior quarter and down from 92% in the prior year
period. GATX Rail's North American fleet totaled 109,000 cars at the end of
the third quarter, essentially flat with the end of the second quarter.
The most recent report on North American manufacturing capacity
utilization indicated that manufacturing plants are operating at 76% of
capacity, flat with prior quarter and year ago levels. Additionally, third
quarter chemical railcar shipments were flat with the prior year period, and
up slightly on a year-to-date basis. These data points reflect the absence of
a material improvement in the manufacturing sector and highlight the continued
softness in the rail sector.
CONSOLIDATED CREDIT STATISTICS
The Company continues to maintain an overall loss allowance position at
the high end of its stated target range of 4.0%-6.5%. At the end of the 2002
third quarter, the allowance for losses was 6.5% of reservable assets compared
to 6.0% at the end of 2001 and 6.5% at the end of the second quarter.
Net charge-offs and impairments totaled $18 million during the 2002 third
quarter, or 1.0% of average total assets on an annualized basis. In the prior
year period, net charge-offs and impairments totaled $64 million, or 3.4% of
average total assets on an annualized basis. For the nine month period ending
September 30, net charge-offs and impairments totaled $60 million (1.1%)
compared to $139 million (2.4%) in the prior year period.
Non-performing leases and loans at the end of the 2002 third quarter
totaled $93 million or 3.3% of Financial Services' investments compared to
$111 million (3.8%) at the end of the second quarter and $107 million (3.3%)
in the prior year period. The decrease in non-performing leases and loans is
driven by overall portfolio stability and a reduction in non-performing levels
within the air portfolio.
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, information technology leasing, venture finance and
diversified finance.
TELECONFERENCE INFORMATION
GATX Corporation will host a teleconference to discuss third quarter
results. Teleconference details are as follows:
Thursday, October 24th
11:00 AM Eastern Time
Domestic Dial-In: 1-800-230-1074
International Dial-In: 1-612-332-0226
Replay: 1-800-475-6701 / Access Code: 656126
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; unanticipated costs or issues arising from the Federal Railroad
Administration's Railworthiness Directive HM-04 or subsequent regulatory
rulings that 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 .
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In Millions, Except Per Share Data)
Three Months Ended Nine Months Ended
September 30 September 30
2002 2001 2002 2001
Gross Income
Revenues $323.5 $363.9 $957.8 $1,142.5
Gain on
extinguishment
of debt 1.4 - 15.9 -
Share of
affiliates'
earnings 17.9 4.9 57.7 34.0
Total Gross Income 342.8 368.8 1,031.4 1,176.5
Ownership Costs
Depreciation and
amortization 91.0 102.9 276.0 315.0
Interest, net 59.4 63.5 172.6 192.5
Operating lease
expense 47.6 51.8 140.0 148.5
Total Ownership Costs 198.0 218.2 588.6 656.0
Other Costs and
Expenses
Operating expenses 62.5 54.5 167.2 178.6
Selling, general
and administrative 47.4 55.1 141.0 178.7
Provision for
possible losses 2.4 24.4 29.3 61.9
Asset impairment
charges 9.2 39.3 15.6 69.9
Reversal of
litigation
provision - (13.1) - (13.1)
Fair value
adjustments for
derivatives (.7) 1.9 3.0 2.3
Total Other Costs
and Expenses 120.8 162.1 356.1 478.3
Income (Loss) from
Continuing Operations
before Income Taxes
and Cumulative Effect
of Accounting Change 24.0 (11.5) 86.7 42.2
Income Taxes (Benefit) 4.9 (4.2) 28.3 22.6
Income (Loss) from
Continuing Operations
before Cumulative Effect
of Accounting Change 19.1 (7.3) 58.4 19.6
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
Income (Loss) before
Cumulative Effect
of Accounting Change 19.1 (7.3) 64.6 185.0
Cumulative Effect of
Accounting Change - - (34.9) -
Net Income (Loss) $19.1 $(7.3) $29.7 $185.0
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In Millions, Except Per Share Data)
(Continued)
Three Months Ended Nine Months Ended
September 30 September 30
2002 2001 2002 2001
Per Share Data
Basic:
Income (loss) from
continuing
operations $.39 $(.15) $1.20 $.41
Income from
discontinued
operations - - .12 3.41
.39 (.15) 1.32 3.82
Cumulative effect
of accounting
change - - (.71) -
Total $.39 $(.15) $.61 $3.82
Average number of
common shares
(in thousands) 48,927 48,615 48,857 48,455
Diluted:
Income (loss) from
continuing
operations $.39 $(.15) $1.20 $.40
Income from
discontinued
operations - - .12 3.35
.39 (.15) 1.32 3.75
Cumulative effect
of accounting
change - - (.71) -
Total $.39 $(.15) $.61 $3.75
Average number of
common shares and
common share
equivalents
(in thousands) 49,127 48,615 49,172 49,317
Dividends declared
per common share $.32 $.31 $.96 $.93
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In Millions)
September 30 December 31
2002 2001
Assets
Cash and Cash Equivalents $248.3 $222.9
Restricted Cash 130.1 124.4
Receivables
Rent and other receivables 143.6 144.2
Finance leases 729.5 868.3
Secured loans 461.7 557.4
Less - allowance for possible losses (87.3) (94.2)
1,247.5 1,475.7
Operating Lease Assets, Facilities and Other
Railcars and service facilities 2,883.7 2,958.2
Operating lease investments and other 2,144.9 1,794.0
Less - allowance for depreciation (2,042.3) (2,028.3)
2,986.3 2,723.9
Progress payments for aircraft
and other equipment 182.2 281.1
3,168.5 3,005.0
Investments in Affiliated Companies 918.6 953.0
Income Taxes Receivable 98.5 34.1
Goodwill, Net of Accumulated Amortization 38.9 63.3
Other Assets 443.3 265.4
$6,293.7 $6,143.8
Liabilities, Deferred Items and Shareholders'
Equity
Accounts Payable $291.2 $293.6
Accrued Expenses 65.6 70.9
Debt
Short-term 41.0 328.5
Long-term:
Recourse 3,400.9 2,897.3
Nonrecourse 604.2 728.2
Capital lease obligations 142.5 163.0
4,188.6 4,117.0
Deferred Income Taxes 577.8 464.5
Other Deferred Items 314.8 316.0
Total Liabilities and Deferred Items 5,438.0 5,262.0
Total Shareholders' Equity 855.7 881.8
$6,293.7 $6,143.8
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(In Millions)
Three Months Ended Nine Months Ended
September 30 September 30
2002 2001 2002 2001
Operating Activities
Income (Loss) from
continuing operations $19.1 $(7.3) $23.5 $19.6
Adjustments to
reconcile income
(loss) from continuing
operations to net cash
provided by continuing
operations:
Realized gains on
remarketing of
leased equipment (3.9) (17.7) (31.3) (67.2)
Gain on sales of
securities (2.3) (7.5) (3.4) (35.1)
Depreciation and
amortization 91.0 102.9 276.0 315.0
Provision for
possible losses 2.4 24.4 29.3 61.9
Asset impairment
charges 9.2 39.3 15.6 69.9
Deferred income taxes 69.2 3.5 107.3 113.5
Gain on extinguishment
of debt (1.4) - (15.9) -
Cumulative effect of
accounting change - - 34.9 -
Reversal of
litigation provision - (13.1) - (13.1)
Payments related to
litigation settlement - (44.6) - (141.0)
Other, including
changes in net
working capital (121.6) (38.9) (206.2) (86.8)
Net cash provided by
continuing operations 61.7 41.0 229.8 236.7
Investing Activities
Additions to equipment
on lease, net of
nonrecourse financing
for leveraged leases,
operating lease assets
and facilities (148.7) (228.5) (662.3) (732.1)
Secured loans extended (35.6) (50.3) (90.9) (253.7)
Investments in
affiliated companies (4.4) (42.0) (31.0) (197.2)
Progress payments (25.8) (100.8) (84.7) (183.3)
Other investments (1.9) (.2) (18.5) (112.6)
Portfolio investments
and capital additions (216.4) (421.8) (887.4) (1,478.9)
Portfolio proceeds 242.3 254.2 722.9 780.0
Proceeds from other
asset sales 7.2 6.3 12.0 202.7
Net cash provided by
(used in) investing
activities of
continuing operations 33.1 (161.3) (152.5) (496.2)
Financing Activities
Net proceeds from
issuance of
long-term debt 144.4 90.8 1,304.7 481.9
Repayment of
long-term debt (319.3) (135.9) (990.7) (787.8)
Net (decrease)
increase in
short-term debt (.8) 89.8 (287.5) (282.5)
Net decrease in
capital lease
obligations (5.6) (4.8) (20.5) (16.1)
Issuance of common
stock and other .1 3.5 4.4 17.6
Cash dividends (15.7) (15.0) (46.9) (45.1)
Net cash (used in)
provided by
financing activities
of continuing
operations (196.9) 28.4 (36.5) (632.0)
Net Transfers to
Discontinued
Operations (.8) (21.7) (12.9) (29.3)
Net (Decrease)
Increase in Cash and
Cash Equivalents from
Continuing Operations (102.9) (113.6) 27.9 (920.8)
Proceeds from Sale of
a Portion of Segment - 40.9 3.2 1,185.0
Taxes Paid on Gain
from Sale of Segment - - - (148.2)
Net Decrease in Cash
and Cash Equivalents
from Discontinued
Operations - - - (12.6)
Net (Decrease) Increase
in Cash and Cash
Equivalents $(102.9) $(72.7) $31.1 $103.4
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended September 30, 2002
(In Millions)
GATX
GATX FINANCIAL CORPORATE DISCONTINUED CONSOL-
RAIL SERVICES AND OTHER OPERATIONS IDATED
Revenues
Lease Income $146.6 $102.8 $- $- $249.4
Marine Operating
Income - 29.0 - - 29.0
Interest Income - 15.4 - - 15.4
Asset Remarketing
Income .4 10.2 - - 10.6
Gain on Sale
of Securities - 2.3 - - 2.3
Fees - 2.5 - - 2.5
Other 14.6 0.0 (.3) - 14.3
Total Revenues 161.6 162.2 (.3) - 323.5
Gain on
Extinguishment
of Debt - 1.3 .1 - 1.4
Share of
Affiliates'
Earnings 2.7 15.2 - - 17.9
Total Gross Income 164.3 178.7 (.2) - 342.8
Depreciation and
Amortization 28.9 62.4 (.3) - 91.0
Interest Expense,
net 14.9 37.5 7.0 - 59.4
Operating Lease
Expense 42.7 4.8 .1 - 47.6
Total Ownership
Costs 86.5 104.7 6.8 - 198.0
Operating Expenses 41.0 21.5 - - 62.5
SG&A 17.3 25.5 4.6 - 47.4
Provision for
Possible Losses .3 2.1 - - 2.4
Asset Impairment
Charges - 9.2 - - 9.2
Other Expenses .5 (1.2) - - (.7)
Total Other Costs
and Expenses 59.1 57.1 4.6 - 120.8
Income (Loss) from
Continuing
Operations
before Income
Taxes 18.7 16.9 (11.6) - 24.0
Income Tax Expense
(Benefit) 4.0 4.7 (3.8) - 4.9
Income (Loss) from
Continuing
Operations 14.7 12.2 (7.8) - 19.1
Discontinued
Operations
Operating results,
net of taxes - - - - -
Gain on Sale, net - - - - -
Total Discontinued
Operations - - - - -
Net Income (Loss) $14.7 $12.2 $(7.8) $- $19.1
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended September 30, 2001
(In Millions)
GATX
GATX FINANCIAL CORPORATE DISCONTINUED CONSOL-
RAIL SERVICES AND OTHER OPERATIONS IDATED
Revenues
Lease Income $156.1 $122.1 $- $- $278.2
Marine Shipping
Revenue - 25.2 - - 25.2
Interest Income - 18.0 - - 18.0
Asset
Remarketing
Income .7 19.8 - - 20.5
Gain on Sale
of Securities - 7.5 - - 7.5
Fees - 4.2 - - 4.2
Other 8.2 (.1) 2.2 - 10.3
Total Revenues 165.0 196.7 2.2 - 363.9
Share of
Affiliates'
Earnings .6 4.3 - - 4.9
Total Gross Income 165.6 201.0 2.2 - 368.8
Depreciation and
Amortization 29.9 73.2 (.2) - 102.9
Interest Expense,
net 15.1 43.4 5.0 - 63.5
Operating Lease
Expense 42.5 6.6 2.7 - 51.8
Total Ownership
Costs 87.5 123.2 7.5 - 218.2
Operating Expenses 35.5 19.2 (.2) - 54.5
SG&A 21.2 28.5 5.4 - 55.1
Provision for
Possible Losses .2 24.2 - - 24.4
Asset Impairment
Charges - 39.3 - - 39.3
Other Expenses .1 (11.3) - - (11.2)
Total Other Costs
and Expenses 57.0 99.9 5.2 - 162.1
Income (Loss) from
Continuing
Operations
before Income
Taxes 21.1 (22.1) (10.5) - (11.5)
Income Tax Expense
(Benefit) 8.0 (8.8) (3.4) - (4.2)
Income (Loss) from
Continuing
Operations 13.1 (13.3) (7.1) - (7.3)
Discontinued
Operations
Operating results,
net of taxes - - - - -
Gain on Sale, net - - - - -
Total Discontinued
Operations - - - - -
Net Income (Loss) $13.1 $(13.3) $(7.1) $- $(7.3)
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Nine Months Ended September 30, 2002
(In Millions)
GATX
GATX FINANCIAL CORPORATE DISCONTINUED CONSOL-
RAIL SERVICES AND OTHER OPERATIONS IDATED
Revenues
Lease Income $458.5 $307.4 $- $- $765.9
Marine
Operating
Income - 53.7 - - 53.7
Interest Income - 44.0 - - 44.0
Asset
Remarketing
Income 4.3 36.1 - - 40.4
Gain on Sale
of Securities - 3.4 - - 3.4
Fees - 10.4 - - 10.4
Other 35.1 5.9 (1.0) - 40.0
Total Revenues 497.9 460.9 (1.0) - 957.8
Gain on
Extinguishment
of Debt - 15.8 .1 - 15.9
Share of
Affiliates'
Earnings 8.7 49.0 - - 57.7
Total Gross Income 506.6 525.7 (.9) - 1,031.4
Depreciation and
Amortization 86.8 188.9 .3 - 276.0
Interest Expense,
net 47.8 109.7 15.1 - 172.6
Operating Lease
Expense 129.2 10.5 .3 - 140.0
Total Ownership
Costs 263.8 309.1 15.7 - 588.6
Operating Expenses 122.2 45.0 - - 167.2
SG&A 54.2 72.3 14.5 - 141.0
Provision for
Possible Losses .9 28.4 - - 29.3
Asset Impairment
Charges - 15.6 - - 15.6
Other Expenses .3 2.7 - - 3.0
Total Other Costs
and Expenses 177.6 164.0 14.5 - 356.1
Income (Loss) from
Continuing
Operations before
Income Taxes and
Cumulative Effect
of Accounting
Change 65.2 52.6 (31.1) - 86.7
Income Tax
Expense (Benefit) 20.3 18.3 (10.3) - 28.3
Income (Loss) from
Continuing
Operations before
Cumulative Effect
of Accounting
Change 44.9 34.3 (20.8) - 58.4
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 44.9 34.3 (20.8) 6.2 64.6
Cumulative Effect
of Accounting
Change (34.9) - - - (34.9)
Net Income (Loss) $10.0 $34.3 $(20.8) $6.2 $29.7
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Nine Months Ended September 30, 2001
(In Millions)
GATX
GATX FINANCIAL CORPORATE DISCONTINUED CONSOL-
RAIL SERVICES AND OTHER OPERATIONS IDATED
Revenues
Lease Income $468.2 $399.3 $- $- $867.5
Marine Shipping
Revenue - 53.3 - - 53.3
Interest Income - 55.4 - - 55.4
Asset
Remarketing
Income 2.4 82.8 - - 85.2
Gain on Sale
of Securities - 35.1 - - 35.1
Fees - 12.7 - - 12.7
Other 28.2 2.3 2.8 - 33.3
Total Revenues 498.8 640.9 2.8 - 1,142.5
Share of
Affiliates'
Earnings 5.1 28.9 - - 34.0
Total Gross
Income 503.9 669.8 2.8 - 1,176.5
Depreciation and
Amortization 87.4 226.5 1.1 - 315.0
Interest Expense,
net 51.4 143.3 (2.2) - 192.5
Operating Lease
Expense 121.9 22.3 4.3 - 148.5
Total Ownership
Costs 260.7 392.1 3.2 - 656.0
Operating Expenses 138.4 40.2 - - 178.6
SG&A 66.0 99.6 13.1 - 178.7
Provision for
Possible Losses .5 61.4 - - 61.9
Asset Impairment
Charges - 69.9 - - 69.9
Other Expenses .6 (11.4) - - (10.8)
Total Other Costs
and Expenses 205.5 259.7 13.1 - 478.3
Income (Loss) from
Continuing
Operations
before Income
Taxes 37.7 18.0 (13.5) - 42.2
Income Tax
Expense (Benefit) 15.7 7.1 (.2) - 22.6
Income (Loss) from
Continuing
Operations 22.0 10.9 (13.3) - 19.6
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) $22.0 $10.9 $(13.3) $165.4 $185.0
GATX CORPORATION AND SUBSIDIARIES
CREDIT STATISTICS
(In Millions, Except Railcar Data)
3Q02 12/31/01 3Q01
Total Assets,
Excluding Cash (A) $7,449.4 $7,403.2 $7,441.0
Reservable Assets 1,334.8 1,569.9 1,711.4
Financial Services
Investments 2,863.4 2,839.7 3,195.5
Allowance for Losses 87.3 94.2 111.0
Allowance for Losses
as a Percentage
of Reservable Assets 6.5% 6.0% 6.5%
Net Charge-Offs and
Asset Impairments
and Write-Downs 18.4 64.0
Net Charge-Offs/Impairments/
Write-Downs as a Percentage
of Average Total Assets 1.0% 3.4%
Non-performing Investments 93.3 96.4 106.7
Non-performing Investments
as a Percentage of Financial
Services Investments 3.3% 3.4% 3.3%
Capital Structure
Short-term Debt, Net of
Unrestricted Cash (207.3) 105.6 4.4
Long-term Debt:
On Balance Sheet
Recourse 3,400.9 2,897.3 2,969.8
Non-recourse 604.2 728.2 585.4
Off Balance Sheet
Recourse 1,132.3 1,183.2 1,191.2
Non-recourse 401.8 423.5 419.9
Capital Lease Obligations 142.5 163.0 148.1
Total Debt Obligations 5,474.4 5,500.8 5,318.8
Total Recourse Debt 4,468.4 4,349.1 4,313.5
Shareholders' Equity and
Allowance for Losses 943.0 976.0 1,026.8
Recourse Leverage 4.7 4.5 4.2
Asset Remarketing Income
Disposition gains on
owned assets 3.9 17.8
Residual sharing fees 6.7 2.7
10.6 20.5
Portfolio Pre-Tax Spread
(Capital Only)
Lease Income 102.8 122.1
Interest Income 15.4 18.0
Share of Affiliates' Earnings 15.2 4.8
Interest Expense (35.5) (41.4)
Operating Lease Expense
and Depreciation (61.9) (72.9)
Total Portfolio Pre-tax Spread 36.0 30.6
Total Portfolio Pre-tax Spread
as a Percentage of Financial
Services' Investments 5.0% 3.8%
Railcar Data
North American Fleet Utilization 91% 92%
Beginning Fleet Size 110,998 109,030
Additions 290 1,305
Scrappings (2,409) (642)
Ending Fleet Size 108,879 109,693
(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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