GATX Corporation (NYSE:GATX) Q2 2023 Earnings Conference Call July 25, 2023 11:00 AM ET

Company Participants

Shari Hellerman - Head, IR

Paul Titterton - EVP & President of Rail North America

Bob Lyons - President & CEO

Tom Ellman - EVP & CFO

Conference Call Participants

Allison Poliniak - Wells Fargo

Justin Long - Stephens Inc.

Matt Elkott - Cowen & Co.

Bascome Majors - Susquehanna

Justin Bergner - Gabelli Funds

Operator

Hello and welcome to the GATX 2023 Second Quarter Earnings Call. [Operator Instructions] I will now turn the conference over to Shari Hellerman, Head of Investor Relations. Please go ahead.

Shari Hellerman

Thank you, Sarah. Good morning and thank you for joining GATX's 2023 second quarter earnings call. I'm joined today by Bob Lyons, President and CEO; Tom Ellman, Executive Vice President and CFO; and Paul Titterton, Executive Vice President and President of Rail North America.

Please note that the information you'll hear during our discussion today will consist of forward-looking statements. Actual results or trends could differ materially from those statements or forecasts. For more information, please refer to the risk factors included in our earnings release and those discussed in GATX's Form 10-K for 2022 and in our other filings with the SEC. GATX assumes no obligation to update or revise any forward-looking statements to reflect subsequent events of circumstances.

Earlier today, GATX reported 2023 second quarter net income of $63.3 million or $1.74 per diluted share. This compares to 2022 second quarter net income of $2.6 million or $0.07 per diluted share. The 2023 second quarter results include a net positive impact of $0.2 million or $0.01 per diluted share from tax adjustments and other items. The 2022 second quarter results implied a negative impact of $35.9 million or $1 per diluted share from tax adjustments and other items.

Year-to-date 2023, net income was $140.7 million or $3.87 per diluted share. This compares to $78.4 million or $2.18 per diluted share for the same period in 2022. The 2023 year-to-date results include a net negative impact of $1.1 million or $0.03 per diluted share from tax adjustments and other items. The 2022 year-to-date results include a net negative impact of $44.4 million or $1.23 per diluted share from tax adjustments and other items. These items are detailed on Page 14 of our earnings release.

Now, I'll briefly address each segment. Rail North America's fleet utilization remained high at 99.3% at quarter end and our renewal success rate was 85.3% which is reflective of the continued strong demand for our existing fleet in North America.