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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported) August 10, 2001
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GATX FINANCIAL CORPORATION
(formerly GATX Capital Corporation)
(Exact Name of Registrant as Specified in its Charter)
Delaware 1-8319 94-1661392
(State or other jurisdiction of (Commission file number) (I.R.S. employer
incorporation) identification number)
500 West Monroe Street,
Chicago, Illinois 60661-3676
(Address of principal executive offices)
Registrant's telephone number, including area code (312) 621-6200
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ITEM 5. OTHER EVENTS.
On July 30, 2001, GATX Financial Services Inc., a Delaware corporation and a
subsidiary of GATX Rail Corporation, a New York corporation, was merged into its
wholly-owned subsidiary GATX Capital Corporation, a Delaware corporation. On
July 31, 2001, GATX Rail Corporation was merged into its wholly-owned subsidiary
GATX Capital Corporation, which concurrently changed its name to GATX Financial
Corporation (commission file number 1-8319).
The attached consolidated statements of income, consolidated balance sheet, and
consolidated statements of cash flows for GATX Financial Corporation are
unaudited and reflect the merger of GATX Rail Corporation into GATX Capital
Corporation. The consolidated financial statements were derived from the
financial statements of GATX Rail Corporation and GATX Capital Corporation and
include all adjustments and reclassifications which management considers
necessary for a fair statement of the consolidated results of operations and
financial position for all periods presented.
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GATX FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEET (UNAUDITED)
(IN MILLIONS)
DECEMBER 31,
------------------------------------------
MARCH 31,
2001 2000 1999 1998
--------- -------- -------- --------
ASSETS
CASH AND CASH EQUIVALENTS $ 628.4 $ 173.8 $ 85.2 $ 81.1
RECEIVABLES
Trade accounts 43.0 63.5 67.1 84.0
Finance leases 991.7 861.9 631.7 658.9
Secured loans 571.3 538.0 358.0 241.6
Less -- allowance for possible losses (102.8) (94.0) (112.3) (132.4)
-------- -------- -------- --------
1,598.6 1,465.5 944.5 852.1
OPERATING LEASE ASSETS AND FACILITIES, NET 2,738.1 2,550.2 2,431.9 1,955.5
DUE FROM GATX CORPORATION 504.4 504.7 455.6 426.0
INVESTMENTS IN AFFILIATED COMPANIES 1,040.8 950.7 756.8 632.5
OTHER ASSETS 474.6 403.7 365.1 259.5
NET ASSETS OF DISCONTINUED OPERATIONS 159.6 610.8 616.5 581.5
-------- -------- -------- --------
TOTAL ASSETS $7,049.1 $6,563.3 $5,655.6 $4,788.2
======== ======== ======== ========
LIABILITIES, DEFERRED ITEM AND
SHAREHOLDER'S EQUITY
ACCOUNTS PAYABLE $ 267.3 $ 263.4 $ 249.2 $ 239.0
ACCRUED EXPENSES 452.4 132.2 46.4 50.3
DEBT
Short-term debt 601.7 557.5 377.0 299.9
Long-term recourse debt 2,907.3 3,093.9 2,685.2 2,068.5
Long-term nonrecourse debt 689.9 494.2 418.8 401.9
Capital lease obligations 72.4 79.0 89.2 100.1
-------- -------- -------- --------
4,271.3 $4,224.6 3,570.2 2,870.4
DEFERRED INCOME TAXES 404.3 462.8 441.2 364.0
OTHER DEFERRED ITEMS 239.2 228.2 140.1 168.8
SHAREHOLDER'S EQUITY 1,414.6 1,252.1 1,208.5 1,095.7
-------- -------- -------- --------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $7,049.1 $6,563.3 $5,655.6 $4,788.2
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GATX FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(IN MILLIONS)
THREE MONTHS ENDED
MARCH 31 YEAR ENDED DECEMBER 31
------------------------- ------------------------------------------
2001 2000 2000 1999 1998
-------- -------- -------- -------- --------
OPERATING ACTIVITIES
Income from continuing operations $ 16.1 $ 44.5 $ 59.6 $ 156.6 $ 150.6
Adjustment to reconcile income from continuing
operations to net cash provided by continuing
operations:
Realized gains on remarketing of leased equipment (9.7) (70.2) (72.9)
(8.5) (58.9)
Depreciation and amortization 102.2 78.3 245.3 200.0
325.6
Provision for possible losses 2.0 11.0
21.3 22.7 11.0
Deferred income taxes (19.4) 29.1 30.6 59.7 41.6
Provision for litigation - - 160.5 - -
Other, including net working capital (74.6) (38.8) (62.2) (139.9) (33.2)
-------- -------- -------- -------- --------
NET CASH PROVIDED BY CONTINUING OPERATIONS 37.1 105.4 477.9 262.5 297.1
INVESTING ACTIVITIES
Additions to operating lease assets and facilities (38.1) (130.5) (379.9) (360.6) (385.2)
Additions to equipment on lease, net of
nonrecourse financing for leveraged leases (266.0) (155.9) (700.8) (697.0) (501.6)
Secured loans extended (113.9) (268.8) (161.6)
(80.5) (436.1)
Investments in affiliated companies (49.5) (244.6) (167.2) (147.0)
(141.1)
Other investments and progress payments (113.6) (7.8) (152.5) (105.9) (34.6)
-------- -------- -------- -------- --------
Portfolio investments and capital additions (639.3) (457.6) (1,913.9) (1,599.5) (1,230.0)
Portfolio proceeds 248.4 99.2 574.7 501.7 804.3
Proceeds from other asset sales 5.0 4.4 304.4 206.4 252.5
-------- -------- -------- -------- --------
NET CASH USED IN INVESTING ACTIVITIES OF
CONTINUING OPERATIONS (385.9) (354.0) (1,034.8) (891.4) (173.2)
FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt 62.0 121.6 1,587.3 981.5 360.1
Repayment of long-term debt (304.1) (56.8) (1,072.2) (293.7) (326.4)
Net increase (decrease) in short term debt 44.6 330.4 96.0
180.2 (69.2)
Repayment of capital lease obligations (4.5) (10.9) (9.5)
(6.6) (10.1)
Equity contribution from GATX Corporation 50.0 - 35.0 - -
Increase in amount due to GATX Corporation .3 (44.1) (29.7) 3.2
(49.1)
Cash dividends to GATX Corporation (58.0) (21.6) (51.9) (99.3) (76.7)
-------- -------- -------- -------- --------
NET CASH (USED IN) PROVIDED BY FINANCING
ACTIVITIES OF CONTINUING OPERATIONS (211.8) 325.0 619.2 643.9 (118.5)
TRANSFERS FROM DISCONTINUED OPERATIONS (6.1) (56.4) 26.3 (10.9) 6.1
-------- -------- -------- -------- --------
NET INCREASE IN CASH AND CASH EQUIVALENTS FROM
CONTINUING OPERATIONS (566.7) 20.0 88.6 4.1 11.5
PROCEEDS FROM SALE OF PORTION OF SEGMENT 1,021.3 - - - -
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS FROM DISCONTINUED OPERATIONS (13.2) 5.2 .3 4.8 1.5
-------- -------- -------- -------- --------
NET INCREASE IN CASH AND CASH EQUIVALENTS $ 441.4 $ 25.2 $ 88.9 $ 8.9 $ 13.0
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GATX FINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(IN MILLIONS)
THREE MONTHS ENDED YEAR ENDED
MARCH 31 DECEMBER 31
------------------------ ----------------------------------------
2001 2000 2000 1999 1998
-------- -------- -------- -------- --------
GROSS INCOME
Revenues $ 361.2 $ 293.7 $1,248.2 $1,074.0 $ 977.2
Share of affiliates' earnings 14.9 20.0 78.9 64.5 48.5
-------- -------- -------- -------- --------
TOTAL GROSS INCOME 376.1 313.7 1,327.1 1,138.5 1,025.7
OWNERSHIP COSTS
Depreciation and amortization 102.2 78.3 325.6 245.3 200.0
Interest, net 62.3 54.5 238.8 173.3 169.4
Operating lease expense 47.1 39.7 175.3 150.0 131.4
-------- -------- -------- -------- --------
TOTAL OWNERSHIP COSTS 211.6 172.5 739.7 568.6 500.8
OTHER COSTS AND EXPENSES
Operating expenses 61.1 29.0 127.0 133.9 133.8
Selling, general, and administrative 53.5 38.8 182.7 168.1 130.6
Provision for possible losses 21.3 2.0 22.7 11.0 11.0
Provision for litigation - - 160.5 - -
Fair value adjustment for derivatives 1.1 - - - -
-------- -------- -------- -------- --------
TOTAL OTHER COSTS AND EXPENSES 137.0 69.8 492.9 313.0 275.4
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 27.5 71.4 94.5 256.9 249.5
INCOME TAXES 11.4 26.9 34.9 100.3 98.9
-------- -------- -------- -------- --------
INCOME FROM CONTINUING OPERATIONS 16.1 44.5 59.6 156.6 150.6
DISCONTINUED OPERATIONS:
Operating results, net of income taxes 3.1 5.8 37.1 21.0 6.9
Gain on sale of portion of segment, net
of income taxes 171.4 - - 1.1 -
-------- -------- -------- -------- --------
174.5 5.8 37.1 22.1 6.9
-------- -------- -------- -------- --------
NET INCOME $ 190.6 $ 50.3 $ 96.7 $ 178.7 $ 157.5
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GATX FINANCIAL CORPORATION
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(Registrant)
/s/ Brian A. Kenney
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Brian A. Kenney
Vice President and
Chief Financial Officer
(Duly Authorized Officer)
Date: August 10, 2001