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GATX Corporation Reports 2024 First-Quarter Results
"We continue to experience solid demand globally for most railcar types in our fleets," said Robert C. Lyons, president and chief executive officer of GATX. "At Rail North America, fleet utilization remained high at 99.4% at the end of the first quarter and the renewal success rate during the quarter was very strong at 83.4%. The renewal lease rate change of GATX's Lease Price Index was positive 33%, with an average renewal term of 64 months. In the first quarter, we generated remarketing income of $33 million, reflecting continued depth and strength in the secondary market.
"Rail International performed as expected and took delivery of over 1,000 new railcars during the quarter. Both Rail Europe and Rail India continued to experience higher renewal lease rates compared to expiring rates for most railcar types. In Engine Leasing, the Rolls-Royce and Partners Finance affiliates and our wholly owned engine portfolio continue to experience robust demand for aircraft spare engines, driven by continued strength in global air passenger traffic. We anticipate adding new aircraft spare engines to our wholly owned portfolio at a similar level as 2023, with investments likely to occur through the balance of the year."
Mr. Lyons concluded, "First-quarter investment volume was $379 million and 2024 investment prospects remain favorable. As the year is progressing in line with our original expectations, our 2024 full-year earnings estimate remains unchanged at $7.30-$7.70 per diluted share, excluding the impact of Tax Adjustments and Other Items."
RAIL NORTH AMERICA
Rail North America reported segment profit of $90.3 million in the first quarter of 2024, compared to $95.2 million in the first quarter of 2023. Lower 2024 first-quarter segment profit was primarily driven by lower gains on asset dispositions and higher interest expense, partially offset by higher lease revenue.
As of March 31, 2024, Rail North America's wholly owned fleet totaled approximately 111,400 cars, including 9,670 boxcars. The following fleet statistics and performance discussion exclude the boxcar fleet.
Fleet utilization was 99.4% at the end of the first quarter, compared to 99.3% at the end of the prior quarter and 99.3% at the end of the first quarter of 2023. During the first quarter of 2024, the GATX Lease Price Index (LPI), a weighted-average lease renewal rate for a group of railcars representative of Rail North America's fleet, was positive 33.0%. This compares to an LPI of positive 33.5% in the prior quarter and positive 28.3% in the first quarter of 2023. The average lease renewal term for all cars included in the LPI during the first quarter was 64 months, compared to 65 months in the prior quarter and 55 months in the first quarter of 2023. The 2024 first-quarter renewal success rate was 83.4%, compared to 87.1% in the prior quarter and 77.9% in the first quarter of 2023. Rail North America's investment volume during the first quarter was $321.7 million.
Additional fleet statistics, including information on the boxcar fleet, and macroeconomic data related to Rail North America's business are provided on the last page of this press release.
RAIL INTERNATIONAL
Rail International's segment profit was $28.8 million in the first quarter of 2024, compared to $23.5 million in the first quarter of 2023. Higher 2024 first-quarter segment profit was predominately driven by more railcars on lease.
As of March 31, 2024, GATX Rail Europe's (GRE's) fleet consisted of over 29,300 railcars. Fleet utilization was 95.3%, compared to 95.9% at the end of the prior quarter and 98.5% at the end of the first quarter of 2023.
As of March 31, 2024, Rail India's fleet consisted of over 9,500 railcars. Fleet utilization was 100%, compared to 100% at the end of the prior quarter and 100% at the end of the first quarter of 2023.
Additional fleet statistics for GRE and Rail India are provided on the last page of this press release.
ENGINE LEASING
As of December 31, 2023, the Company had sold all marine assets, including the Specialized Gas Vessels, and we no longer have any marine operations. As a result, we have changed the name of this business segment from Portfolio Management to Engine Leasing to reflect the prospective operations of this business segment.
Engine Leasing reported segment profit of $25.7 million in the first quarter of 2024, compared to segment profit of $28.3 million in the first quarter of 2023. The 2024 first-quarter segment profit included a net positive impact of $0.6 million from Tax Adjustments and Other Items. The 2023 first-quarter segment profit included a net negative impact of $1.6 million from Tax Adjustments and Other Items. Additional details are provided in the attached Supplemental Information under Tax Adjustments and Other Items. Lower 2024 first-quarter segment profit was driven by lower earnings at the Rolls-Royce and Partners Finance (RRPF) affiliates, partially offset by increased earnings from GATX Engine Leasing. Lower 2024 first-quarter earnings at RRPF was driven by lower remarketing income.
COMPANY DESCRIPTION
At GATX Corporation (NYSE: GATX), we empower our customers to propel the world forward. GATX leases transportation assets including railcars, aircraft spare engines and tank containers to customers worldwide. Our mission is to provide innovative, unparalleled service that enables our customers to transport what matters safely and sustainably while championing the well-being of our employees and communities. Headquartered in Chicago, Illinois since its founding in 1898, GATX has paid a quarterly dividend, uninterrupted, since 1919.
TELECONFERENCE INFORMATION
GATX Corporation will host a teleconference to discuss 2024 first-quarter results. Call details are as follows:
Tuesday, April 23, 2024 11 a.m. Eastern Time Domestic Dial-In: 1-888-660-6118 International Dial-In: 1-929-203-1802 Replay: 1-800-770-2030 or 1-647-362-9199 / Access Code: 2548217
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. A replay will be available on the same site starting at 2 p.m. (Eastern Time), April 23, 2024.
AVAILABILITY OF INFORMATION ON GATX'S WEBSITE
Investors and others should note that GATX routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the GATX Investor Relations website. While not all of the information that the Company posts to the GATX Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in GATX to review the information that it shares on www.gatx.com under the "Investors" tab.
FORWARD-LOOKING STATEMENTS
Statements in this Earnings Release not based on historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and, accordingly, involve known and unknown risks and uncertainties that are difficult to predict and could cause our actual results, performance, or achievements to differ materially from those discussed. These include statements as to our future expectations, beliefs, plans, strategies, objectives, events, conditions, financial performance, prospects, or future events. In some cases, forward-looking statements can be identified by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "outlook," "continue," "likely," "will," "would," and similar words and phrases. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the date they are made, and are not guarantees of future performance. We do not undertake any obligation to publicly update or revise these forward-looking statements.
The following factors, in addition to those discussed under "Risk Factors" and elsewhere in our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2023, could cause actual results to differ materially from our current expectations expressed in forward-looking statements:
a significant decline in customer demand for our transportation assets or services, including as a result of: risks related to our international operations and expansion into new geographic markets, including laws, regulations, tariffs, taxes, treaties or trade barriers affecting our activities in the countries where we do business prolonged inflation or deflation failure to successfully negotiate collective bargaining agreements with the unions representing a substantial portion of our employees high interest rates inability to attract, retain, and motivate qualified personnel, including key management personnel weak macroeconomic conditions and world trade policies inability to maintain and secure our information technology infrastructure from cybersecurity threats and related disruption of our business weak market conditions in our customers' businesses exposure to damages, fines, criminal and civil penalties, and reputational harm arising from a negative outcome in litigation, including claims arising from an accident involving transportation assets adverse changes in the price of, or demand for, commodities changes in, or failure to comply with, laws, rules, and regulations changes in railroad operations, efficiency, pricing and service offerings, including those related to "precision scheduled railroading" or labor strikes or shortages environmental liabilities and remediation costs changes in, or disruptions to, supply chains operational, functional and regulatory risks associated with climate change, severe weather events and natural disasters, and other environmental, social and governance matters availability of pipelines, trucks, and other alternative modes of transportation U.S. and global political conditions and the impact of increased geopolitical tension and wars, including the ongoing war between Russia and Ukraine and resulting sanctions and countermeasures, on domestic and global economic conditions in general, including supply chain challenges and disruptions changes in conditions affecting the aviation industry, including global conflicts, geographic exposure and customer concentrations prolonged inflation or deflation customers' desire to buy, rather than lease, our transportation assets fluctuations in foreign exchange rates other operational or commercial needs or decisions of our customers deterioration of conditions in the capital markets, reductions in our credit ratings, or increases in our financing costs inability to maintain our transportation assets on lease at satisfactory rates due to oversupply of assets in the market or other changes in supply and demand the emergence of new variants of COVID-19 or the occurrence of another widespread health crisis and the impact of measures taken in response competitive factors in our primary markets, including competitors with significantly lower costs of capital inability to obtain cost-effective insurance higher costs associated with increased assignments of our transportation assets following non-renewal of leases, customer defaults, and compliance maintenance programs or other maintenance initiatives changes in assumptions, increases in funding requirements or investment losses in our pension and post-retirement plans events having an adverse impact on assets, customers, or regions where we have a concentrated investment exposure inadequate allowances to cover credit losses in our portfolio financial and operational risks associated with long-term purchase commitments for transportation assets asset impairment charges we may be required to recognize reduced opportunities to generate asset remarketing income inability to maintain effective internal control over financial reporting and disclosure controls and procedures inability to successfully consummate and manage ongoing acquisition and divestiture activities reliance on Rolls-Royce in connection with our aircraft spare engine leasing businesses, and the risks that certain factors that adversely affect Rolls-Royce could have an adverse effect on our businesses potential obsolescence of our assets
GATX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In millions, except per share data)
Three Months Ended
March 31
------------------------------------------------------------------------------------------------------------------------
2024 2023
-------------------- -------------- -------------------- -------------------- ------ --------------------
Revenues
Lease revenue $ 333.3 $ 302.0
Non-dedicated engine revenue 13.2 4.5
Marine operating revenue -- 3.5
Other revenue 33.4 28.9
-------------------- -------------- -------------------- -------------------- ------ --------------------
Total Revenues 379.9 338.9
Expenses
Maintenance expense 91.4 83.9
Marine operating expense -- 2.0
Depreciation expense 96.0 89.8
Operating lease expense 9.0 9.0
Other operating expense 13.6 11.0
Selling, general and administrative expense 55.9 50.4
-------------------- -------------- -------------------- -------------------- ------ --------------------
Total Expenses 265.9 246.1
Other Income (Expense)
Net gain on asset dispositions 36.2 47.1
Interest expense, net (77.8 ) (59.0 )
Other income (expense) 0.8 (4.0 )
-------------------- -------------- -------------------- -------------------- ------ --------------------
Income before Income Taxes and Share of Affiliates' Earnings 73.2 76.9
Income taxes (18.6 ) (20.2 )
Share of affiliates' earnings, net of taxes 19.7 20.7
-------------------- -------------- -------------------- -------------------- ------ --------------------
Net Income $ 74.3 $ 77.4
==================== ============== ==================== ==================== ====== ====================
Share Data
Basic earnings per share $ 2.04 $ 2.19
Average number of common shares 35.8 35.3
Diluted earnings per share $ 2.03 $ 2.16
Average number of common shares and common share equivalents 35.9 35.8
Dividends declared per common share $ 0.58 $ 0.55
GATX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions)
March 31 December 31
2024 2023
-------------------- -------- -------------------- -------------------- -------- --------------------
Assets
Cash and Cash Equivalents $ 479.1 $ 450.7
Restricted Cash 0.1 0.1
Receivables
Rent and other receivables 96.3 87.9
Finance leases (as lessor) 137.3 136.4
Less: allowance for losses (6.1 ) (5.9 )
-------------------- -------- -------------------- -------------------- -------- --------------------
227.5 218.4
Operating Assets and Facilities 13,320.1 13,081.9
Less: allowance for depreciation (3,700.3 ) (3,670.7 )
-------------------- -------- -------------------- -------------------- -------- --------------------
9,619.8 9,411.2
Lease Assets (as lessee)
Right-of-use assets, net of accumulated depreciation 203.5 212.0
-------------------- -------- -------------------- -------------------- -------- --------------------
203.5 212.0
Investments in Affiliated Companies 647.6 627.0
Goodwill 118.0 120.0
Other Assets ($1.8 and $0.8 related to assets held for sale) 283.5 286.6
-------------------- -------- -------------------- -------------------- -------- --------------------
Total Assets $ 11,579.1 $ 11,326.0
==================== ======== ==================== ==================== ======== ====================
Liabilities and Shareholders' Equity
Accounts Payable and Accrued Expenses $ 208.2 $ 239.6
Debt
Commercial paper and borrowings under bank credit facilities 10.8 11.0
Recourse 7,624.5 7,388.1
-------------------- -------- -------------------- -------------------- -------- --------------------
7,635.3 7,399.1
Lease Obligations (as lessee)
Operating leases 215.2 226.8
-------------------- -------- -------------------- -------------------- -------- --------------------
215.2 226.8
Deferred Income Taxes 1,096.2 1,081.1
Other Liabilities 99.9 106.4
-------------------- -------- -------------------- -------------------- -------- --------------------
Total Liabilities 9,254.8 9,053.0
Total Shareholders' Equity 2,324.3 2,273.0
-------------------- -------- -------------------- -------------------- -------- --------------------
Total Liabilities and Shareholders' Equity $ 11,579.1 $ 11,326.0
==================== ======== ==================== ==================== ======== ====================
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended March 31, 2024
(In millions)
Rail North Rail Engine Other GATX
America International Leasing Consolidated
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ---------------------------------- ----------------------------------------------
Revenues
Lease revenue $ 236.5 $ 80.6 $ 8.1 $ 8.1 $ 333.3
Non-dedicated engine revenue -- -- 13.2 -- 13.2
Other revenue 28.5 3.1 -- 1.8 33.4
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- ------ --------------------
265.0 83.7 21.3 9.9 379.9
Total Revenues
Expenses
Maintenance expense 72.9 17.5 -- 1.0 91.4
Depreciation expense 65.1 18.9 8.4 3.6 96.0
Operating lease expense 9.0 -- -- -- 9.0
Other operating expense 6.7 3.5 2.5 0.9 13.6
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- ------ --------------------
153.7 39.9 10.9 5.5 210.0
Total Expenses
Other Income (Expense)
Net gain on asset dispositions 34.2 1.3 0.6 0.1 36.2
Interest (expense) income, net (53.3 ) (16.7 ) (9.3 ) 1.5 (77.8 )
Other (expense) income (2.1 ) 0.4 0.3 2.2 0.8
Share of affiliates' pre-tax earnings 0.2 -- 23.7 -- 23.9
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- ------ --------------------
$ 90.3 $ 28.8 $ 25.7 $ 8.2 $ 153.0
Segment profit
Less:
Selling, general and administrative expense 55.9
Income taxes (includes $4.2 related to affiliates' earnings) 22.8
-------------------- ------ --------------------
Net income $ 74.3
==================== ====== ====================
Selected Data:
--------------------------------------------
Investment volume $ 321.7 $ 49.9 $ -- $ 7.0 $ 378.6
Net Gain on Asset Dispositions
Asset Remarketing Income:
--------------------------------------------
$ 32.9 $ 0.1 $ 0.6 $ 0.1 $ 33.7
Net gains on disposition of owned assets
0.1 -- -- -- 0.1
Residual sharing income
1.2 1.2 -- -- 2.4
Non-remarketing net gains (1)
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- ------ --------------------
__________
GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended March 31, 2023
(In millions)
Rail North Rail Engine Other GATX
America International Leasing Consolidated
------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ---------------------------------- ----------------------------------------------
Revenues
Lease revenue $ 215.1 $ 70.4 $ 8.3 $ 8.2 $ 302.0
Non-dedicated engine revenue -- -- 4.5 -- 4.5
Marine operating revenue -- -- 3.5 -- 3.5
Other revenue 23.8 2.9 -- 2.2 28.9
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- ------ --------------------
238.9 73.3 16.3 10.4 338.9
Total Revenues
Expenses
Maintenance expense 66.9 15.9 -- 1.1 83.9
Marine operating expense -- -- 2.0 -- 2.0
Depreciation expense 65.5 15.7 5.4 3.2 89.8
Operating lease expense 9.0 -- -- -- 9.0
Other operating expense 7.0 2.2 0.9 0.9 11.0
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- ------ --------------------
148.4 33.8 8.3 5.2 195.7
Total Expenses
Other Income (Expense)
Net gain (loss) on asset dispositions 47.8 0.8 (1.5 ) -- 47.1
Interest (expense) income, net (42.3 ) (12.5 ) (5.7 ) 1.5 (59.0 )
Other (expense) income (0.4 ) (4.3 ) (0.5 ) 1.2 (4.0 )
Share of affiliates' pre-tax (losses) earnings (0.4 ) -- 28.0 -- 27.6
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- ------ --------------------
$ 95.2 $ 23.5 $ 28.3 $ 7.9 $ 154.9
Segment profit
Less:
Selling, general and administrative expense 50.4
Income taxes (includes $6.9 related to affiliates' earnings) 27.1
-------------------- ------ --------------------
Net income $ 77.4
==================== ====== ====================
Selected Data:
-----------------------------------------------------
Investment volume $ 296.5 $ 81.1 $ -- $ 9.4 $ 387.0
Net Gain (Loss) on Asset Dispositions
Asset Remarketing Income:
-----------------------------------------------------
$ 44.7 $ 0.4 $ (0.4 ) $ -- $ 44.7
Net gains (losses) on disposition of owned assets
0.1 -- 0.1 -- 0.2
Residual sharing income
3.0 0.4 -- -- 3.4
Non-remarketing net gains (1)
-- -- (1.2 ) -- (1.2 )
Asset impairments
-------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- ------ --------------------
__________
GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(In millions, except per share data)
Impact of Tax Adjustments and Other Items on Net Income (1)
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Three Months Ended
March 31
-------------------------------------------------------------------------------------------------------------------------
2024 2023
-------------------- -------------- -------------------- -------------------- ------- --------------------
Net income (GAAP) $ 74.3 $ 77.4
Adjustments attributable to consolidated pre-tax income:
$ (0.6 ) $ 1.6
(Gain) loss on Specialized Gas Vessels at Engine Leasing (2)
-- (0.3 )
Net gain on Rail Russia at Rail International (3)
-------------------- -------------- -------------------- -------------------- ------- --------------------
Total adjustments attributable to consolidated pre-tax income $ (0.6 ) $ 1.3
-------------------- -------------- -------------------- -------------------- ------- --------------------
Impact of Tax Adjustments and Other Items on Diluted Earnings per Share (1)
---------------------------------------------------------------------------------------------------------------------
Three Months Ended
March 31
------------------------------------------------------------------------------------
2024 2023
-------------------- ------------ -------------------- ------------
Diluted earnings per share (GAAP) $ 2.03 $ 2.16
_________ (1) In addition to financial results reported in accordance with GAAP, we compute certain financial measures using non-GAAP components. Specifically, we exclude the effects of certain tax adjustments and other items for purposes of presenting net income and diluted earnings per share 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. (2) 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. All vessels were sold as of December 31, 2023.
GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(In millions, except leverage)
3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023
------------------------------------------------ ------------------------------------------------ ------------------------------------------------ ------------------------------------------------ -----------------------------------------------
Total Assets, Excluding Cash, by Segment
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Rail North America $ 7,214.1 $ 6,984.9 $ 6,760.5 $ 6,671.3 $ 6,610.8
Rail International 2,142.1 2,150.8 1,951.5 1,902.3 1,801.2
Engine Leasing 1,354.4 1,343.2 1,363.8 1,328.6 1,089.6
Other 389.3 396.3 368.5 370.2 368.9
-------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- ------- --------------------
Total Assets, excluding cash $ 11,099.9 $ 10,875.2 $ 10,444.3 $ 10,272.4 $ 9,870.5
==================== ======== ==================== ==================== ======== ==================== ==================== ======== ==================== ==================== ======== ==================== ==================== ======= ====================
Debt and Lease Obligations, Net of Unrestricted Cash
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Unrestricted cash $ (479.1 ) $ (450.7 ) $ (203.1 ) $ (317.5 ) $ (177.4 )
Commercial paper and bank credit facilities 10.8 11.0 12.3 10.9 20.3
Recourse debt 7,624.5 7,388.1 6,835.6 6,785.6 6,360.9
Operating lease obligations 215.2 226.8 233.2 241.1 246.2
-------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- ------- --------------------
Total debt and lease obligations, net of unrestricted cash $ 7,371.4 $ 7,175.2 $ 6,878.0 $ 6,720.1 $ 6,450.0
==================== ======== ==================== ==================== ======== ==================== ==================== ======== ==================== ==================== ======== ==================== ==================== ======= ====================
Total recourse debt (1) $ 7,371.4 $ 7,175.2 $ 6,878.0 $ 6,720.1 $ 6,450.0
Shareholders' Equity $ 2,324.3 $ 2,273.0 $ 2,174.5 $ 2,178.9 $ 2,101.5
_________ (1) Includes recourse debt, commercial paper and bank credit facilities, and operating and finance lease obligations, net of unrestricted cash.
Reconciliation of Total Assets to Total Assets, Excluding Cash
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Total Assets $ 11,579.1 $ 11,326.0 $ 10,647.5 $ 10,590.1 $ 10,048.1
(479.2 ) (450.8 ) (203.2 ) (317.7 ) (177.6 )
Less: cash
-------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- -------- -------------------- -------------------- -------- --------------------
GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(Continued)
3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023
---------------------------------- ------------------------------ ------------------------------ ---------------------------------- ----------------------------------
Rail North America Statistics
----------------------------------------------------------------
Lease Price Index (LPI) (1)
Average renewal lease rate change 33.0 % 33.5 % 33.4 % 33.1 % 28.3 %
Average renewal term (months) 64 65 65 61 55
Renewal Success Rate (2) 83.4 % 87.1 % 83.6 % 85.3 % 77.9 %
Fleet Rollforward (3)
101,167 100,656 100,585 101,219 100,954
Beginning balance
1,422 1,688 791 358 1,816
Railcars added
(375 ) (354 ) (292 ) (316 ) (324 )
Railcars scrapped
(527 ) (823 ) (428 ) (676 ) (1,227 )
Railcars sold
-------------- -------------------- ---------- -------------------- ---------- -------------------- -------------- -------------------- -------------- --------------------
101,687 101,167 100,656 100,585 101,219
Ending balance
Utilization 99.4 % 99.3 % 99.3 % 99.3 % 99.3 %
Average active railcars 100,677 100,197 99,796 100,230 100,552
Boxcar Fleet Rollforward
9,311 9,087 8,959 8,789 8,663
Beginning balance
587 424 316 279 229
Boxcars added
(228 )