GATX Corporation (NYSE:GATX) Q3 2022 Earnings Conference Call October 25, 2022 11:00 AM ET

Company Participants

Shari Hellerman - Head of IR

Paul Titterton - EVP and President of Rail North America

Robert Lyons - President and CEO

Thomas Ellman - EVP and CFO

Conference Call Participants

Allison Poliniak - Wells Fargo

Matt Elkott - Cowen

Bascome Majors - Susquehanna

Justin Long - Stephens

Justin Bergner - Gabelli Funds

Operator

Good morning. My name is Colby and I'll be your conference operator today. At this time, I would like to welcome everyone to the GATX 2022 Third Quarter Earnings Call.

All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. [Operator instructions] Thank you.

I will now turn the call over to the Head of Investor Relations, Shari Hellerman.

Shari Hellerman

Thank you, Colby. Good morning and thank you for joining GATX's 2022 third quarter earnings call. I'm joined today by Bob Lyons, President and CEO and Tom Ellman, Executive Vice President and CFO. Please note that some of the information you'll hear during our discussion today will consist of forward-looking statement. Actual results or trends could defer 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 2021 and in our other filings with the SEC. GATX assumes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.

Earlier today, GATX reported 2022 third quarter net income of $29.1 million or $0.81 per diluted share. This compares to 2021 third quarter net income of $40.1 million or a $1.11 per diluted share. The 2022 third quarter results include an impairment charge of $10.8 million or $0.30 per diluted share associated with our decision to exit the rail business in Russia.

Year-to-date, 2022 net income with $107.5 million or $2.99 per diluted share. This compares to $82.1 million or $2.28 per diluted share for the same period in 2021. The 2022 year-to-date results include net negative impact of $55.2 million or a $1.54 per diluted share from tax adjustments and other items.

The 2021 year-to-date results include a net negative impact of $43.1 million or a $1.20 per diluted share from tax adjustments and other items. These items are detailed on Page 13 of our earnings release.