GATX Corporation Reports 2019 Second-Quarter Results

Net income for the second quarter 2019 was $68.0 million or $1.86 per diluted share
Company reiterates 2019 full-year earnings guidance
Remarketing income in Rail North America was $26.9 million for the second quarter 2019
Rail North America’s fleet utilization increased to 99.5%

CHICAGO, July 18, 2019 (GLOBE NEWSWIRE) -- GATX Corporation (NYSE:GATX) today reported 2019 second quarter net income of $68.0 million or $1.86 per diluted share, compared to net income of $38.8 million or $1.01 per diluted share in the second quarter of 2018. Net income for the first six months of 2019 was $109.5 million or $2.97 per diluted share, compared to $115.1 million or $2.99 per diluted share in the prior year period. The 2019 second quarter and year-to-date results include a net deferred tax benefit of $2.8 million or $0.08 per diluted share related to an enacted foreign tax rate reduction. The 2018 second quarter and year-to-date results include a net negative impact of $5.8 million or $0.15 per diluted share, attributed to costs associated with the closure of a railcar maintenance facility in Germany. Details related to these items are provided in the attached Supplemental Information under Tax Adjustments and Other Items.

Brian A. Kenney, president and chief executive officer of GATX stated, “Conditions in the North American railcar leasing market are consistent with our expectations coming into the year. Fleet utilization increased to 99.5% at the end of the quarter, and our renewal success rate was 85.3%. As expected, the renewal lease rate change of GATX’s Lease Price Index was negative 2.8% in the quarter, with an average renewal term of 53 months.

“Rail International continues to perform well with GATX Rail Europe’s fleet utilization remaining steady at 98.9% at quarter end. In India, customer demand for new railcar leases continues to gain momentum, and investment volume for 2019 remains robust.

“The Rolls-Royce and Partners Finance affiliates’ performance continues to provide outstanding results within the Portfolio Management segment. American Steamship Company successfully deployed eleven vessels and is benefiting from favorable operating conditions on the Great Lakes.

Mr. Kenney concluded, “Given the current business environment and our financial performance thus far in 2019, our 2019 full-year earnings estimate is unchanged at $4.85-$5.15 per diluted share. This guidance excludes the impact of Tax Benefits and Other Items.”

RAIL NORTH AMERICA

Rail North America reported segment profit of $85.8 million in the second quarter of 2019, compared to $64.2 million in the second quarter of 2018. Higher segment profit was primarily a result of higher gains on asset dispositions. Year-to-date, Rail North America reported segment profit of $154.2 million, compared to $173.1 million in the same period of 2018. Higher revenues in 2019 were more than offset by lower gains on asset dispositions and higher ownership costs in 2019, resulting in lower segment profit.

At June 30, 2019, Rail North America’s wholly owned fleet was comprised of approximately 119,500 railcars, including approximately 16,000 boxcars. The following fleet statistics and performance discussion exclude the boxcar fleet.

Fleet utilization was 99.5% at the end of the second quarter, compared to 99.4% at the end of the prior quarter and 98.9% at the end of the second quarter of 2018. During the second quarter of 2019, the renewal lease rate change of the GATX Lease Price Index (LPI) was negative 2.8%. This compares to positive 5.2% in the prior quarter and negative 16.1% in the second quarter of 2018. The average lease renewal term for cars included in the LPI during the second quarter was 53 months, compared to 39 months in the prior quarter and 41 months in the second quarter of 2018. Rail North America’s investment volume during the second quarter was $105.3 million.

Additional fleet statistics, including information about 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 $21.3 million in the second quarter of 2019 compared to $12.8 million in the second quarter of 2018. Rail International reported segment profit of $36.1 million year-to-date 2019, compared to $31.8 million for the same period of 2018. The second quarter and year-to-date 2018 results include $8.6 million of expense ($5.8 million after-tax) related to the closure of GATX Rail Europe’s (GRE) railcar maintenance facility in Germany. Excluding this expense, results in the comparative periods were favorably impacted by more railcars on lease and negatively impacted by changes in foreign currency exchange rates.

At June 30, 2019, GRE’s fleet consisted of approximately 24,000 cars and utilization was 98.9%, compared to 98.9% at the end of the prior quarter and 97.8% at the end of the second quarter of 2018. Additional fleet statistics for GRE are provided on the last page of this press release.

PORTFOLIO MANAGEMENT

Portfolio Management reported segment profit of $11.9 million in the second quarter of 2019, compared to $11.4 million in the second quarter of 2018. Segment profit year-to-date 2019 was $24.2 million, compared to $25.3 million for the same period of 2018. The decline in segment profit year-to-date was predominantly driven by lower marine operating revenue. Performance at the Rolls-Royce and Partners Finance affiliates (RRPF) continues to be very strong, as evidenced by an increase in Share of Affiliate’s Earnings for both the second quarter and year-to-date 2019 reported results as compared to the prior year periods.

AMERICAN STEAMSHIP COMPANY

American Steamship Company (ASC) reported segment profit of $12.1 million in the second quarter of 2019, compared to $8.0 million in the second quarter of 2018. Segment profit year-to-date 2019 was $14.6 million, compared to $8.8 million for the same period of 2018. ASC carried 9.9 million net tons of cargo through the second quarter of 2019, compared to 9.0 million during the same period in 2018. The improvement in segment profit was primarily driven by favorable operating conditions and more efficient fleet performance.

COMPANY DESCRIPTION

GATX Corporation (NYSE:GATX) strives to be recognized as the finest railcar leasing company in the world by our customers, our shareholders, our employees and the communities where we operate. As the leading global railcar lessor, GATX has been providing quality railcars and services to its customers for more than 120 years. GATX has been headquartered in Chicago, Illinois, since its founding in 1898. For more information, please visit the Company’s website at www.gatx.com.

TELECONFERENCE INFORMATION

GATX Corporation will host a teleconference to discuss 2019 second-quarter results. Call details are as follows:

Thursday, July 18^th
11:00 A.M. Eastern Time
Domestic Dial-In: 1-800-353-6461
International Dial-In: 1-334-323-0501
Replay: 1-888-203-1112 or 1-719-457-0820 / Access Code: 2679577

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.

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 in our other filings with the SEC, including our Form 10-K for the year ended December 31, 2018 and subsequent reports on Form 10-Q, could cause actual results to differ materially from our current expectations expressed in forward-looking statements:

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 our railcars
inability to maintain our assets on lease at satisfactory rates due to oversupply of railcars in the market or other changes in supply and demand
a significant decline in customer demand for our railcars or other assets or services, including as a result of:
- weak macroeconomic conditions
- weak market conditions in our customers’ businesses
- declines in harvest or production volumes
- adverse changes in the price of, or demand for, commodities
- changes in railroad operations or efficiency
- changes in supply chains
- availability of pipelines, trucks, and other alternative modes of transportation
- other operational or commercial needs or decisions of our customers
higher costs associated with increased railcar assignments following non-renewal of leases, customer defaults, and compliance maintenance programs or other maintenance initiatives
events having an adverse impact on assets, customers, or regions where we have a concentrated investment exposure
financial and operational risks associated with long-term railcar purchase commitments, including increased costs due to tariffs or trade disputes
reduced opportunities to generate asset remarketing income

operational and financial risks related to our affiliate investments, including the Rolls-Royce & Partners Finance joint ventures
fluctuations in foreign exchange rates
failure to successfully negotiate collective bargaining agreements with the unions representing a substantial portion of our employees
asset impairment charges we may be required to recognize
deterioration of conditions in the capital markets, reductions in our credit ratings, or increases in our financing costs
uncertainty relating to the LIBOR calculation process and potential phasing out of LIBOR after 2021
competitive factors in our primary markets, including competitors with a significantly lower cost of capital than GATX
risks related to our international operations and expansion into new geographic markets, including the imposition of new or additional tariffs, quotas, or trade barriers
changes in, or failure to comply with, laws, rules, and regulations
inability to obtain cost-effective insurance
environmental remediation costs
inadequate allowances to cover credit losses in our portfolio
inability to maintain and secure our information technology infrastructure from cybersecurity threats and related disruption of our business

FOR FURTHER INFORMATION CONTACT:
GATX Corporation
Jennifer McManus
Senior Director, Investor Relations
GATX Corporation
312-621-6409
jennifer.mcmanus@gatx.com

Investor, corporate, financial, historical financial, and news release information may be found at www.gatx.com.

(7/18/2019)


GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In millions, except per share data)

	Three Months Ended June 30						Six Months Ended June 30
	2019			2018			2019			2018
Revenues
Lease revenue	$	274.0		$	271.0		$	548.4		$	544.2
Marine operating revenue	60.9			55.8			74.0			70.0
Other revenue	24.5			22.7			54.0			40.6
Total Revenues	359.4			349.5			676.4			654.8
Expenses
Maintenance expense	85.7			82.0			166.9			163.2
Marine operating expense	41.0			37.6			53.1			50.1
Depreciation expense	83.8			81.1			163.7			158.5
Operating lease expense	13.7			12.7			27.4			25.7
Other operating expense	7.8			9.1			15.8			17.7
Selling, general and administrative expense	45.1			46.2			91.2			91.1
Total Expenses	277.1			268.7			518.1			506.3
Other Income (Expense)
Net gain on asset dispositions	32.9			6.1			41.8			62.2
Interest expense, net	(47.1		)	(42.2		)	(93.6		)	(82.1		)
Other expense	(0.6		)	(9.8		)	(3.8		)	(11.1		)
Income before Income Taxes and Share of Affiliates’ Earnings	67.5			34.9			102.7			117.5
Income taxes	(15.6		)	(9.1		)	(24.0		)	(29.7		)
Share of affiliates’ earnings, net of taxes	16.1			13.0			30.8			27.3
Net Income	$	68.0		$	38.8		$	109.5		$	115.1

Share Data
Basic earnings per share	$	1.89		$	1.03		$	3.02		$	3.05
Average number of common shares	36.0			37.7			36.2			37.8
Diluted earnings per share	$	1.86		$	1.01		$	2.97		$	2.99
Average number of common shares and common share equivalents	36.7			38.4			36.9			38.5
Dividends declared per common share	$	0.46		$	0.44		$	0.92		$	0.88

GATX CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions)

	June 30			December 31
	2019			2018
Assets
Cash and Cash Equivalents	$	286.6		$	100.2
Restricted Cash	0.3			6.5
Receivables
Rent and other receivables	97.8			87.0
Finance leases (as lessor)	95.3			126.4
Less: allowance for losses	(6.0		)	(6.4		)
	187.1			207.0

Operating Assets and Facilities	9,728.9			9,545.9
Less: allowance for depreciation	(3,122.6		)	(3,013.2		)
	6,606.3			6,532.7
Lease Assets (as lessee)
Right of use assets, net of accumulated depreciation	440.6			—
Finance leases, net of accumulated depreciation	16.5			16.8
	457.1			16.8

Investments in Affiliated Companies	495.8			464.5
Goodwill	82.4			82.9
Other Assets	237.5			206.1
Total Assets	$	8,353.1		$	7,616.7

Liabilities and Shareholders’ Equity
Accounts Payable and Accrued Expenses	$	152.8		$	177.5
Debt
Commercial paper and borrowings under bank credit facilities	26.0			110.8
Recourse	4,832.5			4,429.7
	4,858.5			4,540.5
Lease Obligations (as lessee)
Operating leases	454.5			—
Finance leases	10.6			11.3
	465.1			11.3

Deferred Income Taxes	908.4			877.8
Other Liabilities	133.5			221.5
Total Liabilities	6,518.3			5,828.6
Total Shareholders’ Equity	1,834.8			1,788.1
Total Liabilities and Shareholders’ Equity	$	8,353.1		$	7,616.7

GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended June 30, 2019
(In millions)

	Rail N.A.			Rail Int’l			Portfolio Management			ASC			Other			GATX Consolidated
Revenues
Lease revenue	$	218.8		$	53.9		$	0.2		$	1.1		$	—		$	274.0
Marine operating revenue	—			—			0.1			60.8			—			60.9
Other revenue	22.4			1.8			0.3			—			—			24.5
Total Revenues	241.2			55.7			0.6			61.9			—			359.4
Expenses
Maintenance expense	67.0			11.2			—			7.5			—			85.7
Marine operating expense	—			—			4.0			37.0			—			41.0
Depreciation expense	64.4			14.2			1.7			3.5			—			83.8
Operating lease expense	13.7			—			—			—			—			13.7
Other operating expense	6.4			1.3			0.1			—			—			7.8
Total Expenses	151.5			26.7			5.8			48.0			—			232.0
Other Income (Expense)
Net gain on asset dispositions	32.1			0.5			0.3			—			—			32.9
Interest (expense) income, net	(34.1		)	(10.1		)	(2.8		)	(1.6		)	1.5			(47.1		)
Other (expense) income	(1.9		)	1.9			—			(0.2		)	(0.4		)	(0.6		)
Share of affiliates’ pre-tax income	—			—			19.6			—			—			19.6
Segment profit	$	85.8		$	21.3		$	11.9		$	12.1		$	1.1		$	132.2
Less:
Selling, general and administrative expense																45.1
Income taxes (includes $3.5 related to affiliates’ earnings)																19.1
Net income																$	68.0
Selected Data:
Investment volume	$	105.3		$	73.7		$	—		$	3.9		$	1.2		$	184.1
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets	$	26.8		$	—		$	—		$	—		$	—		$	26.8
Residual sharing income	0.1			—			0.3			—			—			0.4
Non-remarketing net gains (1)	5.2			0.5			—			—			—			5.7
	$	32.1		$	0.5		$	0.3		$	—		$	—		$	32.9
__________
(1) Includes net gains from scrapping of railcars.

GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Three Months Ended June 30, 2018
(In millions)

	Rail N.A.			Rail Int’l			Portfolio Management			ASC			Other			GATX Consolidated
Revenues
Lease revenue	$	217.6		$	52.2		$	0.2		$	1.0		$	—		$	271.0
Marine operating revenue	—			—			3.5			52.3			—			55.8
Other revenue	20.1			2.2			0.4			—			—			22.7
Total Revenues	237.7			54.4			4.1			53.3			—			349.5
Expenses
Maintenance expense	64.1			11.2			—			6.7			—			82.0
Marine operating expense	—			—			4.2			33.4			—			37.6
Depreciation expense	61.8			13.8			1.9			3.6			—			81.1
Operating lease expense	12.7			—			—			—			—			12.7
Other operating expense	7.5			1.5			0.1			—			—			9.1
Total Expenses	146.1			26.5			6.2			43.7			—			222.5
Other Income (Expense)
Net gain on asset dispositions	4.7			1.1			0.3			—			—			6.1
Interest (expense) income, net	(31.1		)	(8.9		)	(2.7		)	(1.5		)	2.0			(42.2		)
Other expense	(1.2		)	(7.3		)	—			(0.1		)	(1.2		)	(9.8		)
Share of affiliates’ pre-tax income	0.2			—			15.9			—			—			16.1
Segment profit	$	64.2		$	12.8		$	11.4		$	8.0		$	0.8		$	97.2
Less:
Selling, general and administrative expense																46.2
Income taxes (includes $3.1 related to affiliates’ earnings)																12.2
Net income																$	38.8
Selected Data:
Investment volume	$	149.1		$	34.6		$	—		$	4.1		$	0.8		$	188.6
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets	$	4.2		$	—		$	—		$	—		$	—		$	4.2
Residual sharing income	0.3			—			0.3			—			—			0.6
Non-remarketing net gains (1)	0.2			1.1			—			—			—			1.3
	$	4.7		$	1.1		$	0.3		$	—		$	—		$	6.1
__________
(1) Includes net gains from scrapping of railcars.

GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Six Months Ended June 30, 2019
(In millions)

	Rail N.A.			Rail Int’l			Portfolio Management			ASC			Other			GATX Consolidated
Revenues
Lease revenue	$	439.7		$	106.1		$	0.5		$	2.1		$	—		$	548.4
Marine operating revenue	—			—			2.5			71.5			—			74.0
Other revenue	49.8			3.8			0.4			—			—			54.0
Total Revenues	489.5			109.9			3.4			73.6			—			676.4
Expenses
Maintenance expense	135.8			23.3			—			7.8			—			166.9
Marine operating expense	—			—			8.6			44.5			—			53.1
Depreciation expense	128.7			28.2			3.3			3.5			—			163.7
Operating lease expense	27.4			—			—			—			—			27.4
Other operating expense	12.8			2.8			0.2			—			—			15.8
Total Expenses	304.7			54.3			12.1			55.8			—			426.9
Other Income (Expense)
Net gain on asset dispositions	40.3			0.9			0.6			—			—			41.8
Interest (expense) income, net	(68.3		)	(20.0		)	(5.5		)	(3.0		)	3.2			(93.6		)
Other expense	(2.6		)	(0.4		)	—			(0.2		)	(0.6		)	(3.8		)
Share of affiliates’ pre-tax income	—			—			37.8			—			—			37.8
Segment profit	$	154.2		$	36.1		$	24.2		$	14.6		$	2.6		$	231.7
Less:
Selling, general and administrative expense																91.2
Income taxes (includes $7.0 related to affiliates’ earnings)																31.0
Net income																$	109.5
Selected Data:
Investment volume	$	204.3		$	106.8		$	—		$	18.4		$	1.9		$	331.4
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets	$	36.5		$	—		$	—		$	—		$	—		$	36.5
Residual sharing income	0.2			—			0.6			—			—			0.8
Non-remarketing net gains (1)	3.6			0.9			—			—			—			4.5
	$	40.3		$	0.9		$	0.6		$	—		$	—		$	41.8
__________
(1) Includes net gains from scrapping of railcars.

GATX CORPORATION AND SUBSIDIARIES
SEGMENT DATA (UNAUDITED)
Six Months Ended June 30, 2018
(In millions)

	Rail N.A.			Rail Int’l			Portfolio Management			ASC			Other			GATX Consolidated
Revenues
Lease revenue	$	437.1		$	104.6		$	0.5		$	2.0		$	—		$	544.2
Marine operating revenue	—			—			7.9			62.1			—			70.0
Other revenue	35.9			4.2			0.5			—			—			40.6
Total Revenues	473.0			108.8			8.9			64.1			—			654.8
Expenses
Maintenance expense	132.2			23.7			—			7.3			—			163.2
Marine operating expense	—			—			8.5			41.6			—			50.1
Depreciation expense	123.3			27.9			3.7			3.6			—			158.5
Operating lease expense	25.7			—			—			—			—			25.7
Other operating expense	14.4			3.0			0.3			—			—			17.7
Total Expenses	295.6			54.6			12.5			52.5			—			415.2
Other Income (Expense)
Net gain on asset dispositions	58.8			2.7			0.6			0.1			—			62.2
Interest (expense) income, net	(61.3		)	(17.6		)	(5.0		)	(2.8		)	4.6			(82.1		)
Other expense	(2.1		)	(7.5		)	—			(0.1		)	(1.4		)	(11.1		)
Share of affiliates’ pre-tax income	0.3			—			33.3			—			—			33.6
Segment profit	$	173.1		$	31.8		$	25.3		$	8.8		$	3.2		$	242.2
Less:
Selling, general and administrative expense																91.1
Income taxes (includes $6.3 related to affiliates’ earnings)																36.0
Net income																$	115.1
Selected Data:
Investment volume	$	285.6		$	64.1		$	—		$	15.8		$	1.5		$	367.0
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets	$	54.1		$	—		$	—		$	0.1		$	—		$	54.2
Residual sharing income	0.4			—			0.6			—			—			1.0
Non-remarketing net gains (1)	4.3			2.7			—			—			—			7.0
	$	58.8		$	2.7		$	0.6		$	0.1		$	—		$	62.2
__________
(1) Includes net gains from scrapping of railcars.

GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(In millions, except per share data)

Impact of Tax Adjustments and Other Items on Net Income*

	Three Months Ended June 30						Six Months Ended June 30
	2019			2018			2019			2018
Net income (GAAP)	$	68.0		$	38.8		$	109.5		$	115.1

Adjustments attributable to consolidated pre-tax income:
Costs related to the closure of a maintenance facility at Rail International	—			8.6			—			8.6
Total adjustments attributable to consolidated pre-tax income	$	—		$	8.6		$	—		$	8.6
Income taxes thereon, based on applicable effective tax rate	$	—		$	(2.8	)	$	—		$	(2.8	)

Other income tax adjustments attributable to consolidated income:
Income tax rate change	$	(2.8	)	$	—		$	(2.8	)	$	—

Net income, excluding tax adjustments and other items (non-GAAP)	$	65.2		$	44.6		$	106.7		$	120.9

Impact of Tax Adjustments and Other Items on Diluted Earnings per Share*

	Three Months Ended June 30				Six Months Ended June 30
	2019		2018		2019		2018
Diluted earnings per share (GAAP)	$	1.86	$	1.01	$	2.97	$	2.99
Diluted earnings per share, excluding tax adjustments and other items (non-GAAP)	$	1.78	$	1.16	$	2.89	$	3.14

(*) 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, 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.

GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(In millions, except leverage)

	6/30/2019			3/31/2019			12/31/2018			9/30/2018			6/30/2018
Assets by Segment, as adjusted (non-GAAP)*
Rail North America	$	5,607.7		$	5,646.7		$	5,651.0		$	5,418.2		$	5,409.0
Rail International	1,404.1			1,315.6			1,309.7			1,294.5			1,266.6
Portfolio Management	626.6			612.8			601.2			614.6			605.8
ASC	331.2			311.1			297.7			303.4			313.6
Other	96.6			99.4			80.6			60.7			61.1
Total Assets, excluding cash, as adjusted (non-GAAP)	$	8,066.2		$	7,985.6		$	7,940.2		$	7,691.4		$	7,656.1
Debt and Lease Obligations, Net of Unrestricted Cash*
Unrestricted cash	$	(286.6	)	$	(248.4	)	$	(100.2	)	$	(254.5	)	$	(237.4	)
Commercial paper and bank credit facilities	26.0			15.9			110.8			—			4.3
Recourse debt	4,832.5			4,768.1			4,429.7			4,397.3			4,397.9
Operating lease obligations	454.5			456.3			—			—			—
Finance lease obligations	10.6			11.0			11.3			11.6			11.9
Total debt and lease obligations, net of unrestricted cash (GAAP)	5,037.0			5,002.9			4,451.6			4,154.4			4,176.7
Off-balance sheet recourse debt (1)	—			—			430.2			432.6			401.7
Total debt and lease obligations, net of unrestricted cash, as adjusted (non-GAAP) (2)	$	5,037.0		$	5,002.9		$	4,881.8		$	4,587.0		$	4,578.4
Shareholders’ Equity	$	1,834.8		$	1,809.2		$	1,788.1		$	1,838.0		$	1,817.6
Recourse Leverage (3)	2.7			2.8			2.7			2.5			2.5
__________
(1) Under the new lease accounting standard, off-balance sheet recourse debt is no longer applicable beginning in 2019.
(2) Includes on- and off-balance sheet debt, commercial paper and bank credit facilities, and operating and finance lease obligations, net of unrestricted cash.
(3) Calculated as total recourse debt / shareholder’s equity.

Reconciliation of Total Assets, excluding cash (GAAP) to Total Assets, excluding cash, as adjusted (non-GAAP)*

Total Assets	$	8,353.1		$	8,240.2		$	7,616.7		$	7,517.4		$	7,495.5
Less: cash	(286.9		)	(254.6		)	(106.7		)	(258.6		)	(241.1		)
Total Assets, excluding cash (GAAP)	8,066.2			7,985.6			7,510.0			7,258.8			7,254.4
Add off-balance sheet assets:
Rail North America	—			—			430.2			432.6			401.7
Total Assets, excluding cash, as adjusted (non-GAAP)	$	8,066.2		$	7,985.6		$	7,940.2		$	7,691.4		$	7,656.1

(*) A portion of our North American railcar fleet is financed through sale-leasebacks that are accounted for as operating leases. Prior to 2019, these railcar assets were not recorded on the balance sheet. Under the new lease accounting standard adopted on January 1, 2019, GATX records these railcar operating leases on the balance sheet as right-of-use assets with corresponding amounts for operating lease liabilities. Prior to 2019, we reported total on- and off-balance sheet assets in our calculation of total assets (as adjusted) because we believed it provided investors a more comprehensive representation of the magnitude of the assets we operated and that drove our financial performance. In addition, this calculation of total assets (as adjusted) provided consistency with other non-financial information we disclosed about our fleet, including the number of railcars in the fleet, average number of cars on lease, and utilization. We also provide information regarding our leverage ratios, which are expressed as a ratio of debt (including off-balance sheet debt) to equity. The off-balance sheet debt amount in this calculation was the equivalent of the off-balance sheet asset amount. We believe reporting this corresponding off-balance sheet debt amount provided investors and other users of our financial statements with a more comprehensive representation of our debt obligations, leverage, and capital structure.

GATX CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION (UNAUDITED)
(Continued)

	6/30/2019		3/31/2019		12/31/2018		9/30/2018		6/30/2018
Rail North America Statistics
Lease Price Index (LPI) (1)
Average renewal lease rate change	(2.8	)%	5.2	%	(0.9	)%	(11.5	)%	(16.1	)%
Average renewal term (months)	53		39		43		33		41
Fleet Rollforward (2)
Beginning balance	104,830		105,472		103,420		102,890		102,597
Cars added	661		617		3,120		1,381		1,231
Cars scrapped	(377	)	(662	)	(387	)	(431	)	(720	)
Cars sold	(1,560	)	(597	)	(681	)	(420	)	(218	)
Ending balance	103,554		104,830		105,472		103,420		102,890
Utilization	99.5	%	99.4	%	99.4	%	99.2	%	98.9	%
Average active railcars	104,089		104,613		103,387		102,056		101,330
Boxcar Fleet
Ending balance	15,921		16,006		16,220		15,859		16,007
Utilization	94.1	%	95.2	%	94.2	%	94.7	%	92.8	%
Rail Europe Statistics
Fleet Rollforward
Beginning balance	23,531		23,412		23,234		23,124		23,004
Cars added	491		185		281		258		245
Cars scrapped/sold	(55	)	(66	)	(103	)	(148	)	(125	)
Ending balance	23,967		23,531		23,412		23,234		23,124
Utilization	98.9	%	98.9	%	98.8	%	98.4	%	97.8	%
Average active railcars	23,480		23,105		22,949		22,759		22,407
Rail North America Industry Statistics
Manufacturing Capacity Utilization Index (3)	77.9	%	78.4	%	79.5	%	78.4	%	77.8	%
Year-over-year Change in U.S. Carloadings (excl. intermodal) (4)	(2.9	)%	(3.1	)%	1.8	%	2.0	%	1.3	%
Year-over-year Change in U.S. Carloadings (chemical) (4)	(0.1	)%	(1.0	)%	3.8	%	4.5	%	3.8	%
Year-over-year Change in U.S. Carloadings (petroleum) (4)	23.2	%	22.0	%	18.2	%	14.7	%	6.8	%
Production Backlog at Railcar Manufacturers (5)	n/a (6	)	73,076		80,223		73,812		65,161
American Steamship Company Statistics
Total Net Tons Carried (millions)	8.7		1.2		8.5		8.7		8.1
__________
(1) GATX’s Lease Price Index (LPI) is an internally-generated business indicator that measures lease rate pricing on renewals for our North American railcar fleet, excluding boxcars. GATX calculates the index using the weighted-average lease rate for a group of railcar types that GATX believes best represents its overall North American fleet, excluding boxcars. The average renewal lease rate change is reported as the percentage change between the average renewal lease rate and the average expiring lease rate, weighted by fleet composition. The average renewal lease term is reported in months and reflects the average renewal lease term of railcar types in the LPI, weighted by fleet composition.
(2) Excludes boxcar fleet.
(3) As reported and revised by the Federal Reserve.
(4) As reported by the Association of American Railroads (AAR).
(5) As reported by the Railway Supply Institute (RSI).
(6) Not available, not published as of the date of this release.