GATX CORP
For the period ended Mar 31, 2025. Filed Apr 25, 2025.
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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.
Mar 31, 2025 · Filed Apr 25, 2025
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Non-GAAP Financial Measures
In addition to financial results reported in accordance with GAAP, we compute certain financial measures using non-GAAP components, as defined by the SEC. These measures are not in accordance with, or a substitute for, GAAP, and our financial measures may be different from non-GAAP financial measures used by other companies. We have provided a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures.
Reconciliation of Non-GAAP Components Used in the Computation of Certain Financial Measures
We exclude the effects of certain tax adjustments and other items for purposes of presenting net income, diluted earnings per share, and return on equity because we believe these items are not attributable to our business operations. Management utilizes net income, excluding tax adjustments and other items, when analyzing financial performance because such amounts reflect the underlying operating results that are within management’s ability to influence. Accordingly, we believe presenting this information provides investors and other users of our financial statements with meaningful supplemental information for purposes of analyzing year-to-year financial performance on a comparable basis and assessing trends.
The following tables show our net income and diluted earnings per share, excluding tax adjustments and other items (in millions, except per share data):
| Impact of Tax Adjustments and Other Items on Net Income: | ||
|---|---|---|
| Three Months EndedMarch 31 | ||
| 2025 | 2024 | |
| Net income (GAAP) | $78.6 | $74.3 |
| Adjustments attributable to consolidated pre-tax income: | ||
| Net gain on Specialized Gas Vessels at Engine Leasing (1) | — | (0.6) |
| Total adjustments attributable to consolidated pre-tax income | $— | $(0.6) |
| Net income, excluding tax adjustments and other items (non-GAAP) | $78.6 | $73.7 |
| Impact of Tax Adjustments and Other Items on Diluted Earnings per Share: | ||
|---|---|---|
| Three Months EndedMarch 31 | ||
| 2025 | 2024 | |
| Diluted earnings per share (GAAP) | $2.15 | $2.03 |
| Adjustments attributable to consolidated income, net of taxes: | ||
| Net gain on Specialized Gas Vessels at Engine Leasing (1) | — | (0.02) |
| Diluted earnings per share, excluding tax adjustments and other items (non-GAAP) | $2.15 | $2.01 |
The following tables show our net income and return on equity, excluding tax adjustments and other items, for the trailing 12 months ended March 31 (in millions):
| 2025 | 2024 | |
|---|---|---|
| Net income (GAAP) | $288.5 | $256.1 |
| Adjustments attributable to consolidated pre-tax income: | ||
| Environmental reserves (2) | $10.7 | $— |
| Litigation claims settlements (3) | 3.3 | — |
| Net loss on Specialized Gas Vessels at Engine Leasing (1) | — | 1.8 |
| Total adjustments attributable to consolidated pre-tax income | $14.0 | $1.8 |
| Income taxes thereon, based on applicable effective tax rate | $(3.5) | $— |
| Other income tax adjustments attributable to consolidated income: | ||
| Income tax rate changes (4) | $(6.0) | $(3.0) |
| Net operating loss valuation allowance adjustment (5) | — | (2.3) |
| Total other income tax adjustments attributable to consolidated income | $(6.0) | $(5.3) |
| Net income, excluding tax adjustments and other items (non-GAAP) | $293.0 | $252.6 |
(1) In 2022, we made the decision to sell the Specialized Gas Vessels. We have recorded gains and losses associated with the subsequent impairments and sales of these assets. As of December 31, 2023, all vessels had been sold.
(2) Reserves recorded in 2024 for our share of anticipated environmental remediation costs arising out of prior operations and legacy businesses.
(3) Expenses recorded for the settlements of litigation claims arising out of legacy business operations.
(4) Deferred income tax adjustment attributable to state tax rate reductions in 2024 and 2023.
(5) Valuation allowance adjustment associated with the realizability of state net operating losses in future tax years.
| 2025 | 2024 | |
|---|---|---|
| Return on Equity (GAAP) | 11.8% | 11.6% |
| Return on Equity, excluding tax adjustments and other items (non-GAAP) | 12.0% | 11.4% |
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