GATX CORP
For the period ended Jun 30, 2024. Filed Jul 25, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 25, 2024
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Discussion of Operating Results
Net income for the six months ended June 30, 2024 was $118.7 million, or $3.25 per diluted share, compared to $140.7 million, or $3.87 per diluted share, for the same period in 2023. Results for the six months ended June 30, 2024 included a net negative impact of $7.4 million ($0.20 per diluted share) from tax adjustments and other items, compared to a net negative impact of $1.1 million ($0.03 per diluted share) from tax adjustments and other items for the six months ended June 30, 2023. See "Non-GAAP Financial Measures" at the end of this item for further details. Excluding the impact of these items, net income decreased $15.7 million compared to the prior year, largely due to lower asset disposition gains at Rail North America, the absence of the sale of natural gas holdings in the prior year, lower share of affiliates' earnings at the RRPF affiliates, and higher interest expense, partially offset by higher revenue at Rail North America and Rail International and higher non-dedicated engine revenue at Engine Leasing.
Net income for the three months ended June 30, 2024 was $44.4 million, or $1.21 per diluted share, compared to $63.3 million, or $1.74 per diluted share, for the same period in 2023. Results for the three months ended June 30, 2024 included a net negative impact of $8.0 million ($0.22 per diluted share), compared to a net positive impact of $0.2 million ($0.01 per diluted share) from tax adjustments and other items. See "Non-GAAP Financial Measures" at the end of this item for further details. Excluding the impact of these items, net income decreased $10.7 million compared to the prior year, largely due to lower asset disposition gains at Rail North America, the absence of the sale of natural gas holdings in the prior year, lower share of affiliates' earnings at the RRPF affiliates, and higher interest expense, partially offset by higher revenue at Rail North America and Rail International and higher non-dedicated engine revenue at Engine Leasing.
The following table shows a summary of our reporting segments and consolidated financial results (in millions, except per share data):
| Three Months EndedJune 30 | Six Months EndedJune 30 | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Segment Revenues | ||||
| Rail North America | $270.4 | $240.4 | $535.4 | $479.3 |
| Rail International | 85.2 | 76.2 | 168.9 | 149.5 |
| Engine Leasing | 21.8 | 16.5 | 43.1 | 32.8 |
| Other | 9.3 | 10.1 | 19.2 | 20.5 |
| $386.7 | $343.2 | $766.6 | $682.1 | |
| Segment Profit (Loss) | ||||
| Rail North America | $78.8 | $79.3 | $169.1 | $174.5 |
| Rail International | 26.5 | 27.3 | 55.3 | 50.8 |
| Engine Leasing | 18.4 | 26.6 | 44.1 | 54.9 |
| Other | (6.2) | 6.0 | 2.0 | 13.9 |
| 117.5 | 139.2 | 270.5 | 294.1 | |
| Less: | ||||
| Selling, general and administrative expense | 58.6 | 52.0 | 114.5 | 102.4 |
| Income taxes (includes $4.1 and $6.3 QTR and $8.3 and $13.2 YTD related to affiliates' earnings) | 14.5 | 23.9 | 37.3 | 51.0 |
| Net Income (GAAP) | $44.4 | $63.3 | $118.7 | $140.7 |
| Net income, excluding tax adjustments and other items (non-GAAP) (1) | $52.4 | $63.1 | $126.1 | $141.8 |
| Diluted earnings per share (GAAP) | $1.21 | $1.74 | $3.25 | $3.87 |
| Diluted earnings per share, excluding tax adjustments and other items (non-GAAP) (1) | $1.43 | $1.73 | $3.45 | $3.90 |
| Investment Volume | $442.0 | $486.6 | $820.6 | $873.6 |
The following table shows our return on equity for the trailing 12 months ended June 30:
| 2024 | 2023 | |
|---|---|---|
| Return on Equity (GAAP) | 10.5% | 10.5% |
| Return on Equity, excluding tax adjustments and other items (non-GAAP) (1) | 10.7% | 11.4% |
(1) See "Non-GAAP Financial Measures" at the end of this item for further details.
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