GATX(US:GATX)2024-07-25 20:16Financial Performance - Total revenues for the second quarter of 2024 reached $386.7 million, a 12.7% increase from $343.2 million in the same period of 2023[14] - Net income for the six months ended June 30, 2024, was $118.7 million, down 15.6% from $140.7 million in the prior year[16] - Basic earnings per share for the second quarter of 2024 were $1.22, a decrease from $1.74 in the same quarter of 2023[14] - The company reported a net cash provided by operating activities of $235.9 million for the first half of 2024, down from $258.4 million in the prior year[16] - Total lease revenue for the six months ended June 30, 2024, was $672.9 million, up 10.2% from $610.6 million in the same period of 2023[35] - Diluted earnings per share for the six months ended June 30, 2024, was $3.25, compared to $3.87 for the same period in 2023, indicating a decrease of about 16%[64] - Net income for the three months ended June 30, 2024, was $44.4 million, down from $63.3 million in the same period of 2023[209] Cash and Liquidity - Cash and cash equivalents increased to $823.6 million as of June 30, 2024, compared to $450.7 million at the end of 2023, reflecting a significant liquidity improvement[12] - As of June 30, 2024, the company had an unrestricted cash balance of $823.6 million and fully available credit facilities of $600 million and $350 million[178] - Net cash used in investing activities for the six months ended June 30, 2024, was $699.0 million, an increase from $544.6 million in the prior year[178] Assets and Liabilities - Operating assets and facilities rose to $13,675.9 million, up from $13,081.9 million at the end of 2023, indicating growth in operational capacity[12] - Total liabilities increased to $9,879.2 million from $9,053.0 million, primarily driven by an increase in recourse debt[12] - Shareholders' equity increased to $2,343.4 million as of June 30, 2024, from $2,273.0 million at the end of 2023, reflecting retained earnings growth[12] - The carrying amount of recourse fixed rate debt was $7,659.1 million as of June 30, 2024, with a fair value of $7,171.3 million[52] Segment Performance - For the three months ended June 30, 2024, total revenues were $386.7 million, with Rail North America contributing $270.4 million, Rail International $85.2 million, Engine Leasing $21.8 million, and Other segment $9.3 million[81] - Segment profit for Rail North America was $78.8 million, Rail International $26.5 million, Engine Leasing $18.4 million, while the Other segment reported a loss of $6.2 million, resulting in a consolidated segment profit of $117.5 million[81] - Rail North America segment revenues increased to $270.4 million for the three months ended June 30, 2024, compared to $240.4 million for the same period in 2023, reflecting a growth of 12.5%[93] Expenses and Costs - The company reported total depreciation expense of $203.5 million for the six months ended June 30, 2024, compared to $189.4 million for the same period in 2023[33] - Selling, general and administrative expenses for the three months ended June 30, 2024, were $58.6 million, compared to $52.0 million for the same period in 2023, an increase of 12.7%[93] - Maintenance expenses for the three months ended June 30, 2023, were $82.3 million, indicating ongoing operational costs associated with asset upkeep[82] Investments and Capital Expenditures - The company made portfolio investments and capital additions totaling $820.6 million during the first half of 2024, compared to $873.6 million in the same period of 2023[16] - Capital expenditures for the period amounted to $442.0 million, with Rail North America at $308.1 million, Rail International $59.6 million, Engine Leasing $71.3 million, and Other segment $3.0 million[81] Legal Matters - The company is currently involved in multiple lawsuits related to the Norfolk Southern train derailment, with a settlement of $600 million reached for claims from residents within a 20-mile radius[68] - The trial for the lawsuits against the company is currently scheduled for March 31, 2025[68] - The company has not established any accruals for potential liability related to ongoing lawsuits and cannot reasonably estimate the loss or range of loss[70] Tax and Compliance - The effective income tax rate for the six months ended June 30, 2024, was 25.1%, a decrease from 26.3% in the same period of 2023[59] - The company remains in compliance with all covenants and conditions of its credit agreements as of June 30, 2024[198]