GATX Corporation Reports 2005 First Quarter Results.CHICAGO Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. -- GATX GATX General American Transportation Corporation Corporation (NYSE NYSE See: New York Stock Exchange :GMT (Greenwich Mean Time) See UTC. GMT - Universal Time 1 ) today announced 2005 first quarter net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $28.4 million or $.52 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $19.7 million or $.38 per diluted share in the first quarter of 2004. First quarter 2004 net income including $3.2 million from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. was $22.9 million or $.44 per diluted share. Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1]. A. Kenney Kenney can refer to: People
Highlights for the quarter included: --North American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of railcar fleet utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be remained at 98% and lease renewal rates in rail continued to increase --Utilization of GATX's air portfolio remained at 98% and aircraft lease rates continued to strengthen --Specialty's marine joint ventures experienced strong demand and higher charter rates --Specialty also generated significant income from a warrant-related position in the liquidating venture portfolio Mr. Kenney added, "While our markets continue to improve, high steel prices and intense competition make it more challenging to identify attractive new investment opportunities. During the quarter we invested $94 million, compared to $105 million in the 2004 first quarter. "Our balance sheet remains strong, and subsequent to the close of the first quarter, we took a positive step regarding liability management. We reduced our 2006 debt maturities by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $190 million through a successful debt tender offer, resulting in a more normalized maturity schedule in 2006. While this will result in a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. expense of approximately $.15 per diluted share in the second quarter, this liability management is a very positive long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. step for GATX. Attractive new debt issuance spreads, which are the lowest we have experienced in over six years, reflect recognition of an on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" improvement in our overall credit profile. In summary, Mr. Kenney added, "While the first quarter results may be difficult to duplicate DUPLICATE. The double of anything. 2. It is usually applied to agreements, letters, receipts, and the like, when two originals are made of either of them. Each copy has the same effect. due to the timing of certain income and expense items, the strong start to the year and the improving operating trends give us a high level of confidence in our previous core earnings guidance for 2005. "At the beginning of the year, we expected 2005 GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). earnings to be in the range of $1.60-$1.70 per diluted share, which included an anticipated tax benefit of approximately $.10 per diluted share. As we noted at that time, this outlook did not include any costs associated with liability management. We now expect GAAP earnings to be in the range of $1.45-$1.55, which includes a net negative impact of $.05 per diluted share related to the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. items; liability management costs (approximately $.15 per diluted share), partially offset by the tax benefits (approximately $.10 per diluted share). We will continue to monitor the impact of market improvements and reassess reassess Verb to reconsider the value or importance of reassessment n Verb 1. reassess - revise or renew one's assessment reevaluate this guidance as appropriate." GATX RAIL GATX Rail reported net income of $20.0 million in the 2005 first quarter, compared to $12.7 million in the prior year period. In addition to improving lease (Scots Law) an extended lease to induce the tenant to make improvements on the premises. See also: Improving rates and 5,400 more cars in service versus the prior year period, Rail's net income benefited from higher remarketing gains on rail equipment. Rail's North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. fleet totaled approximately 107,000 cars and utilization was 98% on March 31, 2005, both flat with year end 2004. Rail acquired 914 cars for its fleet during the first quarter of 2005, including new cars associated with specific customer lease transactions, new cars delivered under the 2002 Committed Purchase Program, and used cars purchased in the secondary market. Rail also sold or scrapped 1,027 cars during the quarter. In the first quarter, lease renewal pricing on a basket basket filled with treats, representative of feast on Easter Sunday. [Folklore: Misc.] See : Easter of Rail's most common car types was up approximately 9% over expiring ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. lease rates. This compares to an increase of 8% in the fourth quarter of 2004 and 3% for the 2004 full year. Maintenance expenses for the first quarter of 2005 were higher than 2004 levels primarily due to railroad railroad or railway, form of transportation most commonly consisting of steel rails, called tracks, on which freight cars, passenger cars, and other rolling stock are drawn by one locomotive or more. enforcement of industry rules for wheel replacement. In the coming quarters, Rail expects to undertake a number of railcar conversions, a process of retrofitting or overhauling idle cars that enables these assets to be used in different service. This has a positive long-term financial impact, but will raise maintenance expenses in the near term. North American manufacturing capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. , as reported by the Federal Reserve, was 79%, flat with the prior quarter and up from 77% in the first quarter 2004. Backlogs at the railcar manufacturers remained high at more than 59,000 cars at the end of the quarter. Rail industry carloadings, excluding intermodal in·ter·mod·al adj. Relating to transportation by more than one means of conveyance, as by truck and rail: intermodal transport. , were up nearly 2.6% year over year and industry-wide chemical shipments increased slightly (0.6%) in the first quarter of 2005 versus the prior year. GATX AIR GATX Air reported first quarter net income of $4.8 million compared to net income of $2.0 million in the prior year period. Air's net income in the first quarter benefited from increased lease income and higher contributions from Air's joint ventures. There are no new aircraft deliveries scheduled for 2005 and Air continues to make progress on its originally scheduled aircraft renewals. Utilization of the owned fleet was 98% at March 31, 2005 and lease rates on certain aircraft types continued to show signs of a recovery. Subsequent to the end of the quarter, Air concluded a new aircraft leasing joint venture, indicative indicative: see mood. of Air's focus on expanding its managed asset base. Regarding the air sector, an updated slide presentation outlining portfolio data is available at www.gatx.com. GATX SPECIALTY A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. FINANCE GATX Specialty Finance reported net income of $10.0 million in the 2005 first quarter compared to $15.9 million in the prior year period. Prior year results included significant remarketing income versus the current period. Specialty continues to experience ongoing improvement in the marine sector, as its three ocean-going ocean-going Adjective (of a ship or boat) suited for travel on the open ocean ocean-going adj → de alta mar ocean-going adj → vessel VESSEL, mar. law. A ship, brig, sloop or other craft used in navigation. 1 Boul. Paty, tit. 1, p. 100. See sup. 2. By an act of congress, approved July 29, 1850, it is provided that any person, not being an owner, who shall on the high seas, willfully, with. joint ventures continued to perform well as a result of higher demand and charter rates. In addition, in the quarter Specialty benefited from pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta warrant gains of $4.9 million, primarily from the sale of its entire warrant-related position in Google (Google, Mountain View, CA, www.google.com) The largest search engine on the Web, founded by Larry Page and Sergey Brin, two Stanford University students. In 1996, they developed their "BackRub" search engine, named after its unique page ranking method (explained below). , which was part of the liquidating venture portfolio. The Specialty portfolio currently consists of $480 million of owned assets and third-party managed portfolios totaling approximately $700 million. GATX is selectively pursuing new investments in Specialty, particularly in shipping/marine and other targeted assets. CREDIT STATISTICS Net charge-offs and impairments totaled $1.8 million in the first quarter 2005 or an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. .1% of average total assets, compared to $.1 million in the same period for 2004. Non-performing leases and loans at the end of the 2005 first quarter totaled $49.4 million, compared to $74.0 million at the end of the first quarter 2004, a reflection of the overall improvement in credit quality in the portfolio. DISCONTINUED OPERATIONS In the second quarter of 2004, GATX completed the sale of substantially all its technology leasing assets. The technology leasing segment is accounted for as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. in all periods presented. The technology leasing segment reported net income of $3.2 million in the first quarter of 2004. COMPANY DESCRIPTION GATX Corporation (NYSE:GMT) is a specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. finance and leasing company combining asset knowledge and services, structuring expertise, partnering, and capital to provide business solutions to customers and partners worldwide. GATX specializes in railcar, locomotive locomotive, vehicle used to pull a train of unpowered railroad cars. Types of Locomotives The steam-powered locomotive played a key role during the development and golden age of railroading, but, despite its long and picturesque history, it has , aircraft, marine vessel and other targeted asset operating leasing. TELECONFERENCE INFORMATION GATX Corporation will host a teleconference to discuss 2005 first quarter results. Teleconference details are as follows:
Thursday, April 21st
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: 5538075
Call in details, a copy of this press release and real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. 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. UPDATE ON AIR PORTFOLIO GATX Corporation has updated its Air portfolio presentation, and the slides are currently available at www.gatx.com or by calling the GATX Investor Relations Investor relations The process by which the corporation communicates with its investors. Department. FORWARD-LOOKING STATEMENTS forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain statements within this document may constitute forward-looking statements made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provision of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are identified by words such as "anticipate," "believe," "estimate," "expect," "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 Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. in GATX's or GATX Financial Corp.'s credit rating, either of which could have an effect on the Company's borrowing costs or ability to access the markets for commercial paper or secured and unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. ; dynamics affecting customers within the chemical, petroleum and food industries; regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. rulings that may impact the economic value of assets; competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. in the rail and air markets who may have access to capital at lower costs than GATX; additional potential write-downs and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. provisions within GATX's portfolio; impaired asset Impaired Asset An asset with a market value that is worth less than its book value. Notes: If the sum of all estimated future cash flows is less than the carrying value of the asset, then the asset would be considered impaired and would have to be written down to its fair charges; and general market conditions in the rail, air, and other large-ticket industries. NON-GAAP FINANCIAL MEASURES This release includes certain financial performance measures computed using non-GAAP (Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ) components as defined by the Securities and Exchange Commission (SEC). These measures are return on equity from continuing operations; return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). including off balance sheet assets; and SG&A efficiency before IDC on owned and managed assets. As required under SEC rules, GATX has provided a reconciliation of those non-GAAP components to the most directly comparable GAAP components, which is available with this release and on our website at www.gatx.com. Financial performance measures disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). in this press release are meant to provide additional information and insight into historical operating results and the financial position of the business. Management uses these performance measures to assist in analyzing GATX's underlying financial performance from period to period and to establish criteria criteria (krītēr´ē  ),n. for compensation decisions. These measures are not in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with, or a substitute for, GAAP and may be different from or inconsistent Reciprocally contradictory or repugnant. Things are said to be inconsistent when they are contrary to each other to the extent that one implies the negation of the other. with non-GAAP financial measures used by other companies. Investor, corporate, financial, historical financial, photographic and news release information may be found at www.gatx.com.
-- Tabular Follows--
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In Millions, Except Per Share Data)
Three Months Ended
March 31
----------------------
2005 2004
---------- ----------
Gross Income
Lease income $ 215.7 $ 187.1
Marine operating revenue 5.9 6.7
Interest income 3.4 8.5
Asset remarketing income 10.4 18.5
Gain on sale of securities 4.9 1.1
Fees 3.6 3.6
Other 13.1 14.7
---------- ----------
Revenues 257.0 240.2
Share of affiliates' earnings 22.9 17.6
---------- ----------
Total Gross Income 279.9 257.8
Ownership Costs
Depreciation 51.8 45.1
Interest, net 41.7 38.5
Operating lease expense 43.5 43.7
---------- ----------
Total Ownership Costs 137.0 127.3
Other Costs and Expenses
Maintenance expense 49.1 46.3
Marine operating expenses 4.9 5.6
Other operating expenses 10.2 12.7
Selling, general and administrative 38.7 38.2
Reversal of provision for possible losses (3.2) (1.9)
Asset impairment charges 2.1 .1
Fair value adjustments for derivatives (2.1) (1.1)
---------- ----------
Total Other Costs and Expenses 99.7 99.9
---------- ----------
Income from Continuing Operations before
Income Taxes 43.2 30.6
Income Taxes 14.8 10.9
---------- ----------
Income from Continuing Operations 28.4 19.7
Discontinued Operations - 3.2
---------- ----------
Net Income $ 28.4 $ 22.9
========== ==========
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In Millions, Except Per Share Data)
(Continued)
Three Months Ended
March 31
----------------------
2005 2004
---------- ----------
Per Share Data
Basic:
Income from continuing operations $ .57 $ .40
Income from discontinued operations - .06
---------- ----------
Total $ .57 $ .46
========== ==========
Average number of common shares (in thousands) 49,637 49,258
Diluted:
Income from continuing operations $ .52 $ .38
Income from discontinued operations - .06
---------- ----------
Total $ .52 $ .44
========== ==========
Average number of common shares and common share
equivalents (in thousands) 60,598 54,779
Dividends declared per common share $ .20 $ .20
GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In Millions)
March 31 December 31
2005 2004
------------ ------------
Assets
Cash and Cash Equivalents $ 58.5 $ 63.4
Restricted Cash 60.7 60.0
Receivables
Rent and other receivables 71.6 77.0
Finance leases 306.4 285.9
Loans 79.0 89.2
Less - allowance for possible losses (19.4) (22.1)
------------ ------------
437.6 430.0
Operating Lease Assets, Facilities and Other
Rail 3,622.4 3,847.9
Air 1,607.0 1,704.1
Specialty 64.3 65.4
Other 213.5 212.3
Less - allowance for depreciation (1,905.9) (1,924.1)
------------ ------------
3,601.3 3,905.6
Progress payments for aircraft and other
equipment 20.4 20.0
------------ ------------
3,621.7 3,925.6
Investments in Affiliated Companies 793.8 718.6
Goodwill, Net 90.7 93.9
Other Investments 74.0 79.0
Other Assets 235.2 242.4
------------ ------------
$ 5,372.2 $ 5,612.9
============ ============
Liabilities and Shareholders' Equity
Accounts Payable and Accrued Expenses $ 254.2 $ 378.2
Debt
Commercial paper and bank credit facilities 19.6 72.1
Recourse 2,730.7 2,887.1
Nonrecourse 92.0 93.5
Capital lease obligations 72.5 79.4
------------ ------------
2,914.8 3,132.1
Deferred Income Taxes 726.5 721.0
Other Liabilities 390.2 300.7
------------ ------------
Total Liabilities 4,285.7 4,532.0
Total Shareholders' Equity 1,086.5 1,080.9
------------ ------------
$ 5,372.2 $ 5,612.9
============ ============
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
First Quarter 2005
(In Millions)
GATX
Rail Air Specialty Other Consolidated
--------- --------- --------- --------- ------------
Gross Income
Lease income $ 178.3 $ 29.8 $ 7.6 $ - $ 215.7
Marine operating
revenue - - - 5.9 5.9
Interest income - .1 1.8 1.5 3.4
Asset remarketing
income 6.9 1.0 2.5 - 10.4
Gain on sale of
securities - - 4.9 - 4.9
Fees .5 2.2 .9 - 3.6
Other 15.2 .2 (.4) (1.9) 13.1
--------- --------- --------- --------- ------------
Revenues 200.9 33.3 17.3 5.5 257.0
Share of
affiliates'
earnings 3.1 10.4 9.4 - 22.9
--------- --------- --------- --------- ------------
Total Gross Income 204.0 43.7 26.7 5.5 279.9
Ownership Costs
Depreciation 35.1 15.7 1.0 - 51.8
Interest, net 22.6 13.3 4.9 .9 41.7
Operating lease
expense 42.0 .5 1.1 (.1) 43.5
--------- --------- --------- --------- ------------
Total Ownership
Costs 99.7 29.5 7.0 .8 137.0
Other Costs and
Expenses
Maintenance
expense 48.2 .4 .5 - 49.1
Marine operating
expenses - - - 4.9 4.9
Other operating
expenses 8.1 .4 1.7 - 10.2
Selling, general
and
administrative 18.0 6.7 1.9 12.1 38.7
Reversal of
provision for
possible losses (.8) (.3) (1.4) (.7) (3.2)
Asset impairment
charges 1.0 - 1.1 - 2.1
Fair value
adjustments for
derivatives - - (.3) (1.8) (2.1)
--------- --------- --------- --------- ------------
Total Other Costs
and Expenses 74.5 7.2 3.5 14.5 99.7
--------- --------- --------- --------- ------------
Income (Loss) from
Continuing
Operations
before Income
Taxes 29.8 7.0 16.2 (9.8) 43.2
Income Tax
Provision
(Benefit) 9.8 2.2 6.2 (3.4) 14.8
--------- --------- --------- --------- ------------
Income (Loss) from
Continuing
Operations $ 20.0 $ 4.8 $ 10.0 $ (6.4) $ 28.4
========= ========= ========= ========= ============
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
2004 First Quarter
(In Millions)
GATX
Rail Air Specialty Other Consolidated
--------- --------- --------- --------- ------------
Gross Income
Lease income $ 159.4 $ 20.6 $ 7.1 $ - $ 187.1
Marine operating
revenue - - - 6.7 6.7
Interest income - .1 8.4 - 8.5
Asset remarketing
income 4.4 .2 13.9 - 18.5
Gain on sale of
securities - - 1.1 - 1.1
Fees 1.0 1.7 .9 - 3.6
Other 13.1 .7 .1 .8 14.7
--------- --------- --------- --------- ------------
Revenues 177.9 23.3 31.5 7.5 240.2
Share of
affiliates'
earnings 3.8 9.2 4.6 - 17.6
--------- --------- --------- --------- ------------
Total Gross Income 181.7 32.5 36.1 7.5 257.8
Ownership Costs
Depreciation 30.2 13.8 1.1 - 45.1
Interest, net 16.8 9.3 7.5 4.9 38.5
Operating lease
expense 41.7 1.0 1.0 - 43.7
--------- --------- --------- --------- ------------
Total Ownership
Costs 88.7 24.1 9.6 4.9 127.3
Other Costs and
Expenses
Maintenance
expense 45.9 .2 .2 - 46.3
Marine operating
expenses - - - 5.6 5.6
Other operating
expenses 11.0 .4 1.2 .1 12.7
Selling, general
and
administrative 16.5 5.4 2.9 13.4 38.2
Provision
(reversal) for
possible losses .2 (.4) (1.7) - (1.9)
Asset impairment
charges - - .1 - .1
Fair value
adjustments for
derivatives - - (1.1) - (1.1)
--------- --------- --------- --------- ------------
Total Other Costs
and Expenses 73.6 5.6 1.6 19.1 99.9
--------- --------- --------- --------- ------------
Income (Loss) from
Continuing
Operations
before Income
Taxes 19.4 2.8 24.9 (16.5) 30.6
Income Tax
Provision
(Benefit) 6.7 .8 9.0 (5.6) 10.9
--------- --------- --------- --------- ------------
Income (Loss) from
Continuing
Operations $ 12.7 $ 2.0 $ 15.9 $ (10.9) $ 19.7
========= ========= ========= ========= ============
GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(In Millions, Except Railcar Data)
3/31/2005 12/31/2004 3/31/2004
----------- ----------- -----------
Total Continuing Assets,
Excluding Cash (a) $ 6,580.8 $ 6,726.8 $ 6,390.9
Reservable Assets 457.0 452.1 495.3
Investment Volume 94.3 104.6
Allowance for Losses 19.4 22.1 43.3
Allowance for Losses as a
Percentage Of Reservable Assets 4.2% 4.9% 8.7%
Net Charge-Offs and Asset
Impairments and Write-Downs 1.8 .1
Net Charge-Offs/Impairments/
Write-Downs as a Percentage
of Average Total Assets .1% 0%
Non-performing Investments 49.4 57.2 74.0
Capital Structure
Short-term Debt, Net of
Unrestricted Cash (38.9) 8.7 (216.8)
Long-term Debt:
On Balance Sheet
Recourse 2,730.7 2,887.1 2,866.0
Nonrecourse 92.0 93.5 97.9
Off Balance Sheet
Recourse 1,018.7 937.3 935.3
Nonrecourse 309.7 311.4 310.9
Capital Lease Obligations 72.5 79.4 107.6
Total Net Debt Obligations 4,184.7 4,317.4 4,100.9
Total Recourse Debt 3,783.0 3,912.5 3,692.1
Shareholders' Equity and Allowance
for Losses 1,105.9 1,103.0 943.1
Recourse Leverage 3.4 3.5 3.9
Asset Remarketing Income
------------------------
Disposition gains on owned
assets 8.0 17.4
Residual sharing fees 2.4 1.1
----------- -----------
10.4 18.5
Railcar Data Full Year
------------ -----------
North American Fleet Utilization 98% 98% 94%
Beginning Fleet Size 106,819 105,248 105,248
Additions 914 6,236 1,269
Scrapped/Sold (1,027) (4,665) (1,729)
----------- ----------- -----------
Ending Fleet Size 106,706 106,819 104,788
(a) Includes Off Balance Sheet Assets
GATX CORPORATION AND SUBSIDIARIES
FINANCIAL PERFORMANCE MEASURES (UNAUDITED)
(In Millions)
Financial Performance Measures:
Ratios are based on continuing operations and are shown for the
trailing 12-months ended:
March 31
--------------------------------
2005 2004
--------------- ---------------
Return on equity 16.8% 9.6%
Return on assets 2.5% 1.2%
SG&A efficiency
ratio 1.75% 1.69%
The 2005 12-month trailing return measures were positively affected
by 2004 non-operating events including the gain from the sale of the
Staten Island property, insurance recoveries and other tax benefits.
Definitions:
Return on equity: Income from continuing operations divided by
average total shareholders' equity.
Return on assets: Income from continuing operations divided by
average total on and off balance sheet (owned)
assets.
SG&A efficiency ratio: Selling, general and administrative expenses
(SG&A) before capitalized initial direct costs
(IDC) divided by average total owned and
managed assets. IDC are expenses incurred by
GATX to originate new leases and loans which
are deferred and amortized over the term of
the lease or loan.
Reconciliation of Non-GAAP Components used in Computation of Financial
Performance Measures:
12 Months Ended
March 31
---------------------
2005 2004
---------- ----------
---------- ----------
Income from continuing operations $ 167.2 $ 81.1
========== ==========
SG&A expenses $ 163.8 $ 166.4
IDC 2.4 2.2
---------- ----------
SG&A before IDC $ 166.2 $ 168.6
========== ==========
3/31/05 3/31/04 3/31/03
---------- ---------- ----------
On balance sheet assets from
continuing operations $ 5,372.2 $ 5,428.6 $ 5,723.9
Off balance sheet assets from
continuing operations 1,328.4 1,246.2 1,307.9
---------- ---------- ----------
Total on and off balance sheet
(owned) assets from continuing
operations $ 6,700.6 $ 6,674.8 $ 7,031.8
Managed assets from continuing
operations 2,705.4 2,945.3 3,297.8
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Total owned and managed assets from
continuing operations $ 9,406.0 $ 9,620.1 $10,329.6
========== ========== ==========
Shareholders' equity $ 1,086.5 $ 899.8 $ 789.1
========== ========== ==========
Financial performance measures disclosed in this press release are meant to provide additional information and insight into historical operating results and the financial position of the business. Management uses these performance measures to assist in analyzing GATX's underlying financial performance from period to period and to establish criteria for compensation decisions. GATX presented return on assets, including off balance sheet assets, because it believes that incorporating off balance sheet assets, primarily railcars financed with operating leases Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. , results in a more accurate measure of the return GATX receives on assets in which it has an ownership-like interest. The SG&A efficiency ratio as presented is a more accurate measurement of actual SG&A incurred for the year as it relates to the underlying owned and managed assets, an asset base which is more reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of the support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services and administrative activities performed for both GATX and its customers. These measures are not in accordance with, or a substitute for, GAAP and may be different from or inconsistent with non-GAAP financial measures used by other companies. |
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