GATX Corporation (NYSE:GATX) Q1 2024 Earnings Conference Call April 23, 2024 11:00 AM ET
Company Participants
Shari Hellerman - Head, IR
Robert Lyons - President and CEO
Tom Ellman - EVP and CFO
Conference Call Participants
Matt Elkott - TD Cowen
Justin Long - Stephens
Bascome Majors - Susquehanna
Justin Bergner - Gabelli Funds
Brendan McCarthy - Sidoti
Operator
Good morning. My name is Dennis, and I will be your conference operator today. At this time, I would like to welcome everyone to the GATX Corporation First Quarter 2024 Earnings Conference Call. [Operator Instructions]
I would now like to turn the conference over to Shari Hellerman, Head of Investor Relations for GATX Corporation. Please go ahead.
Shari Hellerman
Thank you, Dennis. Good morning, and thank you for joining GATX's 2024 first quarter earnings call. I'm joined today by Bob Lyons, President and Chief Executive Officer; and Tom Ellman, Executive Vice President and Chief Financial Officer. As a reminder, some of 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 2023 and elsewhere in our filings with the SEC. GATX assumes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.
Before I provide a quick recap of our first quarter results, I'd like to remind everyone that our Annual Shareholders meeting is scheduled on Friday, April 26 at 9:00 a.m., Central time, and will be held in a virtual-only meeting format.
Earlier today, GATX reported 2024 first quarter net income of $74.3 million, or $2.03 per diluted share. This compares to 2023 first quarter net income of $77.4 million, or $2.16 per diluted share.
The 2024 first quarter results included a net positive impact of $0.6 million, or $0.02 per diluted share from tax adjustments and other items. The 2023 first quarter results included a net negative impact of $1.3 million, or $0.04 per diluted share from tax adjustments and other items. These items are detailed in the supplemental information section of our earnings release.
Our first quarter results and the operating environment were in line with our expectations coming into the year. GATX Rail North America fleet continues to perform very well with utilization of 99.4% at the end of the first quarter. Our renewal success rate also remained very high at 83.4%. We continue to achieve very strong renewal lease rate increases while also extending term. The renewal rate change of GATX's lease price index was positive 33% for the quarter and the average renewal term was 64 months. Additionally, we continue to successfully place new railcars from our committed supply agreements with a diverse customer base.