EXHIBIT 99.1
 | NEWS RELEASE |
FOR RELEASE: IMMEDIATE
GATX CORPORATION REPORTS 2005 FOURTH QUARTER AND FULL YEAR RESULTS
| • | Rail 2005 net income up 35%, fundamentals remain strong | ||
| • | Positive consolidated earnings outlook for 2006 |
CHICAGO, January 26 — GATX Corporation (NYSE:GMT) today announced 2005 fourth quarter and full year results. For the 2005 fourth quarter, GATX reported a net loss from continuing operations of $112.3 million or $2.22 per diluted share. Results reflect an after-tax charge of $119.9 million or $2.37 per diluted share related to a previously announced write-down of air assets targeted for sale and $9.9 million or $.19 per diluted share of expenses associated with the repatriation of foreign earnings. Net income from continuing operations for the 2004 fourth quarter was $70.9 million or $1.23 per diluted share, which included an after-tax gain of $37.8 million or $.63 per diluted share from the sale of GATX’s Staten Island property and after-tax benefits of $14.5 million or $.24 per diluted share from a tax refund.
For the full year ending December 31, 2005, GATX reported a net loss from continuing operations of $15.1 million or $.30 per diluted share, which included the aforementioned air charges ($119.9 million or $2.39 per diluted share) and foreign earnings repatriation ($9.9 million or $.20 per diluted share). Income from continuing operations for the full year 2004 was $158.5 million or $2.86 per diluted share and included after-tax gains of $37.8 million or $.63 per diluted share from the aforementioned property sale, $31.5 million or $.52 per diluted share from insurance recoveries and $16.9 million or $.28 per diluted share of tax benefits including the abovementioned refund and other favorable tax adjustments.
Brian A. Kenney, president and CEO of GATX, stated, “Our fourth quarter and full year financial results reflect the charge resulting from our recent decision to sell approximately $450 million of older aircraft in our portfolio. This decision will focus our Air business on our newer aircraft, enable us to allocate more resources to pursue aircraft management initiatives, and should provide a less volatile, higher risk-adjusted return in our Air business. While it is disappointing that this charge causes a net loss for 2005, the operating performance of our Rail and Specialty businesses continued to improve. In addition, we invested over $520 million in new assets while maintaining a disciplined approach in a competitive investment market.
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“We enter 2006 building on the solid operational momentum of the past year. Rail’s 2005 net income increased 35% from 2004 due to increasing lease rates, high utilization, effective management of fleet turnover and maintenance costs, the expansion of the locomotive fleet, and improved contribution from our European operations. We also selectively extended lease terms in our rail portfolio, which should help temper the volatility from lease rate changes in the future. Although new railcar prices remain high and the competition for railcars in the secondary market is intense, we were able to invest $403 million in 2005. Looking ahead, we expect average lease rates to continue to increase versus expiring rates in 2006. Based on this revenue momentum, complemented by a growing contribution from railcar investments in recent years, we expect a significant increase in Rail’s 2006 net income over 2005.
“The results in Air were down from the prior year, reflecting the charge related to the air assets targeted for sale. The air market continues to improve and we are positioning our fleet to take advantage of these conditions. Additionally, we expanded our aircraft management initiatives as evidenced by the increase in fee income in 2005. In 2006, we expect Air’s net income to increase substantially as we renew aircraft at higher lease rates and further expand fee income.
“Specialty’s income improved from the prior year, due in part to significant remarketing income from both our owned and managed portfolios. Income from our marine joint ventures outpaced our expectations during the year as vessel utilization and charter rates remained high. We maintained our investment discipline in growing our marine and industrial equipment assets, investing $93 million in 2005. In 2006, we expect Specialty’s net income to decline as we do not foresee the same level of remarketing gains we experienced in 2005.”
Mr. Kenney concluded, “On a consolidated basis, we expect GAAP net income from continuing operations to be in the range of $2.60-$2.70 per diluted share in 2006. This outlook includes benefits of $.20 per diluted share from discontinuing depreciation expense on certain air assets classified as “held for sale” in accordance with GAAP, and other non-operating items. The major risks to this forecast include the effects of continued high fuel prices on our customer base and volatility in the air market.”
GATX RAIL
GATX Rail reported net income of $17.9 million in the fourth quarter of 2005, compared to $15.8 million in the prior year period. For the full year 2005, GATX Rail reported $81.7 million in
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net income versus $60.4 million in 2004. The 2005 fourth quarter and full year results incorporate $5.3 million of taxes associated with the repatriation of foreign earnings. Net income increased year over year primarily due to an increased number of cars on lease, higher average lease rates, incremental income from the expansion of the locomotive fleet and improved contributions from European operations.
At December 31, 2005, Rail’s North American fleet totaled approximately 108,000 cars. North American fleet utilization was 98%, flat with year end 2004 and each quarter in 2005. During the fourth quarter, lease renewal pricing on a basket of Rail’s most common car types increased approximately 14% over expiring lease rates. This compares to increases of 8% in the fourth quarter of 2004 and 11% in the third quarter of 2005. For the full year, lease renewals in this basket were up 10% over the prior lease rate, compared to a 3% increase for the full year 2004.
In 2005, GATX Rail acquired 5,400 cars compared to 6,236 cars in 2004. Rail scrapped or sold nearly 4,100 cars in 2005, versus approximately 4,700 in 2004, with the net effect of growing the North American fleet by over 1,300 cars in 2005.
In macroeconomic data related to GATX Rail’s business, North American manufacturing capacity utilization, as reported by the Federal Reserve, was 81% at year end, up from 80% at the end of 2004. Backlogs at the railcar manufacturers increased to more than 69,000 cars at the end of 2005, up from approximately 59,000 at year end 2004. Carloadings on the U.S. rails, excluding intermodal, as reported by the Association of American Railroads (AAR), increased 0.9% over 2004. Chemical shipments, which accounted for 9% of total non-intermodal U.S. rail carloadings, were down 1.4% in 2005 versus the prior year.
GATX AIR
GATX Air reported a net loss of $119.3 million in the fourth quarter of 2005 compared to net income of $0.2 million in the prior year period. For full year 2005, GATX Air reported a net loss of $109.2 million compared to net income of $9.8 million in 2004. As noted previously, the fourth quarter and full year results at Air reflect a $119.9 million after-tax charge for the write-down of air assets targeted for sale. Sales of targeted aircraft are expected to be substantially complete by the end of 2006. Additionally, Air’s 2005 fourth quarter and full year results reflect GATX’s share of aircraft impairment ($6.1 million, after-tax) related to older 737-300 aircraft on lease to Delta Airlines, which was recorded at Pembroke, a 50%-owned affiliate.
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Utilization of the owned fleet was 99% at December 31, 2005 and lease rates on certain aircraft types continued to recover. In 2005, fee income increased $3.3 million due to higher management fees from third party aircraft remarketing engagements.
GATX Air has a large remarketing calendar in 2006 and expects that many aircraft up for lease renewal or placement should experience lease rate increases.
An updated slide presentation summarizing the GATX Air portfolio and market data is available at www.gatx.com.
GATX SPECIALTY FINANCE
GATX Specialty Finance reported net income of $2.4 million in the fourth quarter of 2005 compared to $9.2 million in the prior year period. Specialty reported net income for the full year 2005 of $49.4 million compared to $40.6 million in 2004.
The 2005 results reflect strong performance in the shipping joint ventures and significant remarketing income. Charter rates and utilization in each of our shipping joint ventures increased versus the prior year. Specialty remarketing income increased by $5.3 million in 2005 over 2004, including a $12.8 million residual sharing fee in the second quarter from a transaction in the managed portfolio. In addition, lease income steadily improved throughout 2005 and new industrial equipment finance assets were added to the portfolio.
The Specialty portfolio currently consists of over $438 million of owned assets (including on and off balance sheet assets) and third-party managed portfolios totaling approximately $556 million.
CREDIT STATISTICS
For the full year, net charge-offs and impairments totaled $88.6 million versus $14.4 million in 2004. Charge-offs and impairments include $73.9 million related to wholly-owned air assets targeted for sale. Non-performing investments (lease receivables, finance leases, operating lease assets and loans) at the end of the 2005 fourth quarter totaled $42.0 million, compared to $57.2 million at the end of 2004.
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 in all periods presented.
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COMPANY DESCRIPTION
GATX Corporation (NYSE:GMT) provides lease financing and related services to customers operating rail, air, marine and other targeted assets. GATX is a leader in leasing transportation assets and controls one of the largest railcar fleets in the world. Applying over a century of operating experience and strong market and asset expertise, GATX provides quality assets and services to customers worldwide. GATX has been headquartered in Chicago, IL since its founding in 1898 and has traded on the New York Stock Exchange since 1916. For more information, visit the Company’s website at www.gatx.com.
TELECONFERENCE INFORMATION
GATX Corporation will host a teleconference to discuss 2005 fourth quarter and full year results. Teleconference details are as follows:
Thursday, January 26th
11:00 A.M.Eastern Time
Domestic Dial-In: 1-800-706-6082
International Dial-In: 1-706-634-7421
Replay: 1-800-642-1687 / Access Code: 4340471
11:00 A.M.Eastern Time
Domestic Dial-In: 1-800-706-6082
International Dial-In: 1-706-634-7421
Replay: 1-800-642-1687 / Access Code: 4340471
Call-in details, a copy of this press release and real-time 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 Department.
FORWARD-LOOKING STATEMENTS
Certain statements 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,” “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; lease rates, utilization levels and operating costs in GATX’s primary asset segments; conditions in the capital markets; changes in GATX’s or GATX Financial Corporation’s credit ratings; dynamics affecting companies within the markets served by GATX; regulatory rulings that may impact the economic value and operating costs of assets; competitive factors in GATX’s primary markets including lease pricing and asset availability; changes in loss provision levels within GATX’s portfolio; impaired asset charges that may result from changing market conditions or implementation of portfolio management initiatives by GATX; the outcome of pending or threatened litigation and general market conditions in the rail, air, marine and other large-ticket industries. Other
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factors and unanticipated events could adversely affect our business operations and financial performance. We discuss certain of these matters more fully, as well as certain risk factors that may affect our business operations, financial condition and results of operations, in other of our filings with the SEC, including our Annual Report on Form 10-K. These risks, uncertainties and other factors should be carefully considered in evaluating the forward-looking statements. The forward-looking statements included in this press release are made only as of the date of this release, and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances.
FOR FURTHER INFORMATION CONTACT:
GATX Corporation
Rhonda S. Johnson
312-621-6262
rhonda.johnson@gatx.com
GATX Corporation
Rhonda S. Johnson
312-621-6262
rhonda.johnson@gatx.com
Investor, corporate, financial, historical financial, photographic and news release information may be found at www.gatx.com.
(01/26/06)
—Tabular Follows—
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GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Millions, Except Per Share Data)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Millions, Except Per Share Data)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31 | December 31 | |||||||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||||||
Gross Income | ||||||||||||||||
| Lease income | $ | 226.3 | $ | 212.5 | $ | 878.4 | $ | 790.3 | ||||||||
| Marine operating revenue | 44.9 | 35.6 | 138.3 | 111.8 | ||||||||||||
| Interest income | 0.9 | 2.5 | 10.0 | 17.8 | ||||||||||||
| Asset remarketing income | 1.3 | 4.3 | 43.7 | 36.5 | ||||||||||||
| Gain on sale of securities | 0.6 | 0.7 | 7.4 | 4.1 | ||||||||||||
| Fees | 6.0 | 6.2 | 17.7 | 20.9 | ||||||||||||
| Other | 20.3 | 88.7 | 67.9 | 185.5 | ||||||||||||
| Revenues | 300.3 | 350.5 | 1,163.4 | 1,166.9 | ||||||||||||
| Share of affiliates’ (losses) earnings | (109.6 | ) | 14.0 | (26.2 | ) | 65.2 | ||||||||||
Total Gross Income | 190.7 | 364.5 | 1,137.2 | 1,232.1 | ||||||||||||
Ownership Costs | ||||||||||||||||
| Depreciation | 50.9 | 52.4 | 202.7 | 194.6 | ||||||||||||
| Interest, net | 41.7 | 42.5 | 164.7 | 162.4 | ||||||||||||
| Operating lease expense | 46.2 | 43.1 | 187.0 | 173.6 | ||||||||||||
Total Ownership Costs | 138.8 | 138.0 | 554.4 | 530.6 | ||||||||||||
Other Costs and Expenses | ||||||||||||||||
| Maintenance expense | 53.0 | 49.9 | 194.9 | 189.2 | ||||||||||||
| Marine operating expenses | 36.6 | 28.5 | 108.9 | 87.7 | ||||||||||||
| Other operating expenses | 10.6 | 8.0 | 51.9 | 42.2 | ||||||||||||
| Debt extinguishment costs | 5.0 | — | 16.9 | — | ||||||||||||
| Selling, general and administrative | 46.0 | 43.9 | 167.5 | 163.3 | ||||||||||||
| Reversal of provision for possible losses | (0.1 | ) | (4.0 | ) | (6.3 | ) | (13.7 | ) | ||||||||
| Asset impairment charges | 79.3 | 2.0 | 86.0 | 3.4 | ||||||||||||
| Fair value adjustments for derivatives | (0.8 | ) | 2.6 | (9.2 | ) | 2.7 | ||||||||||
Total Other Costs and Expenses | 229.6 | 130.9 | 610.6 | 474.8 | ||||||||||||
(Loss) Income from Continuing Operations before Income Taxes | (177.7 | ) | 95.6 | (27.8 | ) | 226.7 | ||||||||||
Income Tax (Benefit) Provision | (65.4 | ) | 24.7 | (12.7 | ) | 68.2 | ||||||||||
(Loss) Income from Continuing Operations | (112.3 | ) | 70.9 | (15.1 | ) | 158.5 | ||||||||||
Discontinued Operations | ||||||||||||||||
| Operating results, net of taxes | 0.4 | (0.2 | ) | 0.8 | 18.3 | |||||||||||
| Gain (loss) on sale of segment, net of taxes | — | 0.5 | — | (7.2 | ) | |||||||||||
Total Discontinued Operations | 0.4 | 0.3 | 0.8 | 11.1 | ||||||||||||
Net (Loss) Income | $ | (111.9 | ) | $ | 71.2 | $ | (14.3 | ) | $ | 169.6 | ||||||
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GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Millions, Except Per Share Data)
(Continued)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Millions, Except Per Share Data)
(Continued)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31 | December 31 | |||||||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||||||
Per Share Data | ||||||||||||||||
| Basic: | ||||||||||||||||
| (Loss) Income from continuing operations | $ | (2.22 | ) | $ | 1.43 | $ | (0.30 | ) | $ | 3.21 | ||||||
| Income from discontinued operations | 0.01 | 0.01 | 0.01 | 0.23 | ||||||||||||
| Total | $ | (2.21 | ) | $ | 1.44 | $ | (0.29 | ) | $ | 3.44 | ||||||
| Average number of common shares (in thousands) | 50,613 | 49,464 | 50,106 | 49,348 | ||||||||||||
| Diluted: | ||||||||||||||||
| (Loss) Income from continuing operations | $ | (2.22 | ) | $ | 1.23 | $ | (0.30 | ) | $ | 2.86 | ||||||
| Income from discontinued operations | 0.01 | 0.01 | 0.01 | 0.18 | ||||||||||||
| Total | $ | (2.21 | ) | $ | 1.24 | $ | (0.29 | ) | $ | 3.04 | ||||||
| Average number of common shares and common share equivalents (in thousands) | 50,613 | 60,354 | 50,106 | 60,082 | ||||||||||||
| Dividends declared per common share | $ | 0.20 | $ | 0.20 | $ | 0.80 | $ | 0.80 | ||||||||
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GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In Millions)
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In Millions)
| December 31 | ||||||||
| 2005 | 2004 | |||||||
Assets | ||||||||
Cash and Cash Equivalents | $ | 106.0 | $ | 63.4 | ||||
Restricted Cash | 53.1 | 60.0 | ||||||
Receivables | ||||||||
| Rent and other receivables | 87.2 | 77.0 | ||||||
| Finance leases | 336.5 | 285.9 | ||||||
| Loans | 38.7 | 89.2 | ||||||
| Less — allowance for possible losses | (13.1 | ) | (22.1 | ) | ||||
| 449.3 | 430.0 | |||||||
Operating Lease Assets, Facilities and Other | ||||||||
| Rail | 3,728.1 | 3,847.9 | ||||||
| Air | 1,298.9 | 1,724.1 | ||||||
| Specialty | 90.8 | 65.4 | ||||||
| Other | 234.9 | 212.3 | ||||||
| Less — allowance for depreciation | (1,891.1 | ) | (1,924.1 | ) | ||||
| 3,461.6 | 3,925.6 | |||||||
Investments in Affiliated Companies | 667.3 | 718.6 | ||||||
Goodwill | 86.0 | 93.9 | ||||||
Other Investments | 212.8 | 79.0 | ||||||
Other Assets | 208.4 | 242.4 | ||||||
Total Assets | $ | 5,244.5 | $ | 5,612.9 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Accounts Payable and Accrued Expenses | $ | 177.4 | $ | 180.0 | ||||
Debt | ||||||||
| Commercial paper and bank credit facilities | 57.0 | 72.1 | ||||||
| Recourse | 2,715.4 | 2,887.1 | ||||||
| Nonrecourse | 37.7 | 93.5 | ||||||
| Capital lease obligations | 62.5 | 79.4 | ||||||
| 2,872.6 | 3,132.1 | |||||||
Deferred Income Taxes | 684.2 | 721.0 | ||||||
Other Liabilities | 486.7 | 498.9 | ||||||
Total Liabilities | 4,220.9 | 4,532.0 | ||||||
Total Shareholders’ Equity | 1,023.6 | 1,080.9 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 5,244.5 | $ | 5,612.9 | ||||
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GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended December 31, 2005
(In Millions)
SEGMENT DATA (UNAUDITED)
Three Months Ended December 31, 2005
(In Millions)
| GATX | ||||||||||||||||||||
| Rail | Air | Specialty | Other | Consolidated | ||||||||||||||||
Gross Income | ||||||||||||||||||||
| Lease income | $ | 187.1 | $ | 30.3 | $ | 8.9 | $ | — | $ | 226.3 | ||||||||||
| Marine operating revenue | — | — | — | 44.9 | 44.9 | |||||||||||||||
| Interest income | — | 0.2 | 0.7 | — | 0.9 | |||||||||||||||
| Asset remarketing income | 0.2 | 0.2 | 0.9 | — | 1.3 | |||||||||||||||
| Gain on sale of securities | — | — | 0.6 | — | 0.6 | |||||||||||||||
| Fees | 0.4 | 5.0 | 0.6 | — | 6.0 | |||||||||||||||
| Other | 18.5 | 0.2 | 0.6 | 1.0 | 20.3 | |||||||||||||||
| Revenues | 206.2 | 35.9 | 12.3 | 45.9 | 300.3 | |||||||||||||||
| Share of affiliates’ earnings (losses) | 3.3 | (118.2 | )(a) | 5.3 | — | (109.6 | ) | |||||||||||||
Total Gross Income | 209.5 | (82.3 | ) | 17.6 | 45.9 | 190.7 | ||||||||||||||
Ownership Costs | ||||||||||||||||||||
| Depreciation | 33.1 | 14.4 | 1.1 | 2.3 | 50.9 | |||||||||||||||
| Interest, net | 20.4 | 16.0 | 4.0 | 1.3 | 41.7 | |||||||||||||||
| Operating lease expense | 44.8 | 0.5 | 1.0 | (0.1 | ) | 46.2 | ||||||||||||||
Total Ownership Costs | 98.3 | 30.9 | 6.1 | 3.5 | 138.8 | |||||||||||||||
Other Costs and Expenses | ||||||||||||||||||||
| Maintenance expense | 52.7 | 0.2 | 0.1 | — | 53.0 | |||||||||||||||
| Marine operating expenses | — | — | — | 36.6 | 36.6 | |||||||||||||||
| Other operating expenses | 5.6 | 0.3 | 3.6 | 1.1 | 10.6 | |||||||||||||||
| Debt extinguishment costs | 5.0 | — | — | — | 5.0 | |||||||||||||||
| Selling, general and administrative | 19.4 | 6.3 | 2.2 | 18.1 | 46.0 | |||||||||||||||
| Provision (reversal) for possible losses | 0.2 | — | 0.4 | (0.7 | ) | (0.1 | ) | |||||||||||||
| Asset impairment charges | 0.4 | 77.2 | 1.7 | — | 79.3 | |||||||||||||||
| Fair value adjustments for derivatives | 0.2 | — | (0.2 | ) | (0.8 | ) | (0.8 | ) | ||||||||||||
Total Other Costs and Expenses | 83.5 | 84.0 | 7.8 | 54.3 | 229.6 | |||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes | 27.7 | (197.2 | ) | 3.7 | (11.9 | ) | (177.7 | ) | ||||||||||||
Income Tax Provision (Benefit) | 9.8 | (77.9 | ) | 1.3 | 1.4 | (65.4 | ) | |||||||||||||
Income (Loss) from Continuing Operations | $ | 17.9 | $ | (119.3 | ) | $ | 2.4 | $ | (13.3 | ) | $ | (112.3 | ) | |||||||
| (a) | Includes impairment charges of $133.3 million |
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GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended December 31, 2004
(In Millions)
SEGMENT DATA (UNAUDITED)
Three Months Ended December 31, 2004
(In Millions)
| GATX | ||||||||||||||||||||
| Rail | Air | Specialty | Other | Consolidated | ||||||||||||||||
Gross Income | ||||||||||||||||||||
| Lease income | $ | 174.4 | $ | 29.9 | $ | 8.2 | $ | — | $ | 212.5 | ||||||||||
| Marine operating revenue | — | — | — | 35.6 | 35.6 | |||||||||||||||
| Interest income | — | 0.1 | 2.3 | 0.1 | 2.5 | |||||||||||||||
| Asset remarketing income | 1.3 | 1.9 | 1.0 | 0.1 | 4.3 | |||||||||||||||
| Gain on sale of securities | — | — | 0.7 | — | 0.7 | |||||||||||||||
| Fees | 1.0 | 2.0 | 3.2 | — | 6.2 | |||||||||||||||
| Other | 16.8 | 0.9 | 0.4 | 70.6 | 88.7 | |||||||||||||||
| Revenues | 193.5 | 34.8 | 15.8 | 106.4 | 350.5 | |||||||||||||||
| Share of affiliates’ earnings | 3.7 | 2.3 | 8.0 | — | 14.0 | |||||||||||||||
Total Gross Income | 197.2 | 37.1 | 23.8 | 106.4 | 364.5 | |||||||||||||||
Ownership Costs | ||||||||||||||||||||
| Depreciation | 33.1 | 16.1 | 1.0 | 2.2 | 52.4 | |||||||||||||||
| Interest, net | 22.4 | 13.1 | 5.9 | 1.1 | 42.5 | |||||||||||||||
| Operating lease expense | 41.2 | 0.9 | 1.0 | — | 43.1 | |||||||||||||||
Total Ownership Costs | 96.7 | 30.1 | 7.9 | 3.3 | 138.0 | |||||||||||||||
Other Costs and Expenses | ||||||||||||||||||||
| Maintenance expense | 49.9 | — | — | — | 49.9 | |||||||||||||||
| Marine operating expenses | — | — | — | 28.5 | 28.5 | |||||||||||||||
| Other operating expenses | 6.7 | 1.0 | — | 0.3 | 8.0 | |||||||||||||||
| Selling, general and administrative | 19.6 | 5.7 | 1.5 | 17.1 | 43.9 | |||||||||||||||
| Reversal of provision for possible losses | (1.5 | ) | (0.1 | ) | (1.7 | ) | (0.7 | ) | (4.0 | ) | ||||||||||
| Asset impairment charges | 1.2 | 0.4 | 0.5 | (0.1 | ) | 2.0 | ||||||||||||||
| Fair value adjustments for derivatives | — | — | 1.4 | 1.2 | 2.6 | |||||||||||||||
Total Other Costs and Expenses | 75.9 | 7.0 | 1.7 | 46.3 | 130.9 | |||||||||||||||
Income from Continuing Operations before Income Taxes | 24.6 | — | 14.2 | 56.8 | 95.6 | |||||||||||||||
Income Tax Provision (Benefit) | 8.8 | (0.2 | ) | 5.0 | 11.1 | 24.7 | ||||||||||||||
Income from Continuing Operations | $ | 15.8 | $ | 0.2 | $ | 9.2 | $ | 45.7 | $ | 70.9 | ||||||||||
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GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Twelve Months Ended December 31, 2005
(In Millions)
SEGMENT DATA (UNAUDITED)
Twelve Months Ended December 31, 2005
(In Millions)
| �� | GATX | |||||||||||||||||||
| Rail | Air | Specialty | Other | Consolidated | ||||||||||||||||
Gross Income | ||||||||||||||||||||
| Lease income | $ | 729.4 | $ | 117.6 | $ | 31.4 | $ | — | $ | 878.4 | ||||||||||
| Marine operating revenue | — | — | — | 138.3 | 138.3 | |||||||||||||||
| Interest income | — | 0.6 | 7.5 | 1.9 | 10.0 | |||||||||||||||
| Asset remarketing income | 13.3 | 2.3 | 28.1 | — | 43.7 | |||||||||||||||
| Gain on sale of securities | 0.6 | — | 6.8 | — | 7.4 | |||||||||||||||
| Fees | 1.7 | 12.6 | 3.4 | — | 17.7 | |||||||||||||||
| Other | 63.2 | 0.5 | 2.9 | 1.3 | 67.9 | |||||||||||||||
| Revenues | 808.2 | 133.6 | 80.1 | 141.5 | 1,163.4 | |||||||||||||||
| Share of affiliates’ earnings (losses) | 16.3 | (85.8 | )(a) | 43.3 | — | (26.2 | ) | |||||||||||||
Total Gross Income | 824.5 | 47.8 | 123.4 | 141.5 | 1,137.2 | |||||||||||||||
Ownership Costs | ||||||||||||||||||||
| Depreciation | 132.1 | 59.8 | 4.2 | 6.6 | 202.7 | |||||||||||||||
| Interest, net | 81.9 | 59.0 | 18.0 | 5.8 | 164.7 | |||||||||||||||
| Operating lease expense | 176.2 | 7.0 | 4.1 | (0.3 | ) | 187.0 | ||||||||||||||
Total Ownership Costs | 390.2 | 125.8 | 26.3 | 12.1 | 554.4 | |||||||||||||||
Other Costs and Expenses | ||||||||||||||||||||
| Maintenance expense | 193.3 | 0.8 | 0.8 | — | 194.9 | |||||||||||||||
| Marine operating expenses | — | — | — | 108.9 | 108.9 | |||||||||||||||
| Other operating expenses | 33.2 | 1.7 | 9.9 | 7.1 | 51.9 | |||||||||||||||
| Debt extinguishment costs | 5.0 | — | — | 11.9 | 16.9 | |||||||||||||||
| Selling, general and administrative | 73.0 | 25.9 | 7.7 | 60.9 | 167.5 | |||||||||||||||
| Reversal of provision for possible losses | (0.5 | ) | (0.7 | ) | (2.3 | ) | (2.8 | ) | (6.3 | ) | ||||||||||
| Asset impairment charges | 5.6 | 77.2 | 3.2 | — | 86.0 | |||||||||||||||
| Fair value adjustments for derivatives | 0.2 | — | (2.5 | ) | (6.9 | ) | (9.2 | ) | ||||||||||||
Total Other Costs and Expenses | 309.8 | 104.9 | 16.8 | 179.1 | 610.6 | |||||||||||||||
Income (Loss) from Continuing Operations before Income Taxes | 124.5 | (182.9 | ) | 80.3 | (49.7 | ) | (27.8 | ) | ||||||||||||
Income Tax Provision (Benefit) | 42.8 | (73.7 | ) | 30.9 | (12.7 | ) | (12.7 | ) | ||||||||||||
Income (Loss) from Continuing Operations | $ | 81.7 | $ | (109.2 | ) | $ | 49.4 | $ | (37.0 | ) | $ | (15.1 | ) | |||||||
| (a) | Includes impairment charges of $133.3 million |
Page 13
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Twelve Months Ended December 31, 2004
(In Millions)
SEGMENT DATA (UNAUDITED)
Twelve Months Ended December 31, 2004
(In Millions)
| GATX | ||||||||||||||||||||
| Rail | Air | Specialty | Other | Consolidated | ||||||||||||||||
Gross Income | ||||||||||||||||||||
| Lease income | $ | 659.5 | $ | 101.0 | $ | 29.8 | $ | — | $ | 790.3 | ||||||||||
| Marine operating revenue | — | — | — | 111.8 | 111.8 | |||||||||||||||
| Interest income | — | 0.3 | 17.4 | 0.1 | 17.8 | |||||||||||||||
| Asset remarketing income | 8.1 | 5.5 | 22.8 | 0.1 | 36.5 | |||||||||||||||
| Gain on sale of securities | — | — | 4.1 | — | 4.1 | |||||||||||||||
| Fees | 4.0 | 9.3 | 7.6 | — | 20.9 | |||||||||||||||
| Other | 58.3 | 2.6 | 2.7 | 121.9 | 185.5 | |||||||||||||||
| Revenues | 729.9 | 118.7 | 84.4 | 233.9 | 1,166.9 | |||||||||||||||
| Share of affiliates’ earnings | 16.6 | 26.2 | 22.4 | — | 65.2 | |||||||||||||||
Total Gross Income | 746.5 | 144.9 | 106.8 | 233.9 | 1,232.1 | |||||||||||||||
Ownership Costs | ||||||||||||||||||||
| Depreciation | 124.2 | 59.5 | 4.2 | 6.7 | 194.6 | |||||||||||||||
| Interest, net | 77.7 | 42.0 | 26.2 | 16.5 | 162.4 | |||||||||||||||
| Operating lease expense | 166.0 | 3.8 | 4.1 | (0.3 | ) | 173.6 | ||||||||||||||
Total Ownership Costs | 367.9 | 105.3 | 34.5 | 22.9 | 530.6 | |||||||||||||||
Other Costs and Expenses | ||||||||||||||||||||
| Maintenance expense | 186.8 | 1.6 | 0.8 | — | 189.2 | |||||||||||||||
| Marine operating expenses | — | — | — | 87.7 | 87.7 | |||||||||||||||
| Other operating expenses | 34.1 | 2.4 | 3.7 | 2.0 | 42.2 | |||||||||||||||
| Selling, general and administrative | 70.7 | 21.5 | 8.7 | 62.4 | 163.3 | |||||||||||||||
| Reversal of provision for possible losses | (2.3 | ) | (0.6 | ) | (9.4 | ) | (1.4 | ) | (13.7 | ) | ||||||||||
| Asset impairment charges | 1.2 | 0.4 | 1.6 | 0.2 | 3.4 | |||||||||||||||
| Fair value adjustments for derivatives | — | — | 1.5 | 1.2 | 2.7 | |||||||||||||||
Total Other Costs and Expenses | 290.5 | 25.3 | 6.9 | 152.1 | 474.8 | |||||||||||||||
Income from Continuing Operations before Income Taxes | 88.1 | 14.3 | 65.4 | 58.9 | 226.7 | |||||||||||||||
Income Taxes | 27.7 | 4.5 | 24.8 | 11.2 | 68.2 | |||||||||||||||
Income from Continuing Operations | $ | 60.4 | $ | 9.8 | $ | 40.6 | $ | 47.7 | $ | 158.5 | ||||||||||
Page 14
GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(In Millions, Except Railcar Data)
SUPPLEMENTAL INFORMATION (UNAUDITED)
(In Millions, Except Railcar Data)
| 12/31/2005 | 12/31/2004 | |||||||
Total Continuing Assets, Excluding Cash(a) | $ | 6,371.6 | $ | 6,726.8 | ||||
| Reservable Assets | 462.4 | 452.1 | ||||||
| Investment Volume (Quarter) | 185.3 | 243.2 | ||||||
| (Year to Date) | 520.5 | 760.0 | ||||||
| Allowance for Losses | 13.1 | 22.1 | ||||||
| Allowance for Losses as a Percentage of Reservable Assets | 2.8 | % | 4.9 | % | ||||
| Net Charge-Offs and Asset Impairments | 88.6 | 14.4 | ||||||
| Net Charge-Offs/Impairments as a Percentage of Average Total Assets | 1.4 | % | 0.2 | % | ||||
| Non-performing Investments | 42.0 | 57.2 | ||||||
Capital Structure | ||||||||
| Commercial Paper and Bank Credit Facilities, Net of Unrestricted Cash | (49.0 | ) | 8.7 | |||||
| Debt: | ||||||||
| On Balance Sheet | ||||||||
| Recourse | 2,715.4 | 2,887.1 | ||||||
| Nonrecourse | 37.7 | 93.5 | ||||||
| Off Balance Sheet | ||||||||
| Recourse | 984.9 | 937.3 | ||||||
| Nonrecourse | 301.3 | 311.4 | ||||||
| Capital Lease Obligations | 62.5 | 79.4 | ||||||
| Total Borrowings, Net of Unrestricted Cash | 4,052.8 | 4,317.4 | ||||||
| Total Recourse Debt | 3,713.8 | 3,912.5 | ||||||
| Shareholders’ Equity and Allowance for Losses | 1,036.7 | 1,103.0 | ||||||
| Recourse Leverage | 3.6 | 3.5 | ||||||
Asset Remarketing Income | ||||||||
| Disposition gains on owned assets | 26.1 | 25.3 | ||||||
| Residual sharing fees | 17.6 | 11.2 | ||||||
| 43.7 | 36.5 | |||||||
Railcar Data | Full Year | |||||||
| North American Fleet Utilization | 98 | % | 98 | % | ||||
| Beginning Fleet Size | 106,819 | 105,248 | ||||||
| Additions | 5,400 | 6,236 | ||||||
| Scrapped/Sold | (4,068 | ) | (4,665 | ) | ||||
| Ending Fleet Size | 108,151 | 106,819 | ||||||
| (a) | Includes Off Balance Sheet Assets |