GATX Corp. (NYSE:GATX) Q4 2019 Earnings Conference Call - Final Transcript

Jan 23, 2020 • 11:00 am ET

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GATX Corp. (NYSE:GATX) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the GATX Fourth Quarter and Full-Year 2019 Conference Call. Today's conference is being recorded.

At this time, I'd like to turn the conference over to Shari Hellerman. Please go ahead.

Executive
Shari Hellerman

Thank you. Good morning, everyone, and thank you for joining GATX's fourth quarter and 2019 year-end earnings conference call. I'm joined today by Brian Kenney, President and CEO; Tom Ellman, Executive Vice President and CFO; and Bob Lyons, Executive Vice President and President of Rail North America.

Please note that 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 release and those discussed in GATX's Form 10-K for 2018. GATX assumes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.

I'll provide a quick overview of our 2019 fourth quarter and full year results, and then Brian will provide additional comments on 2019, as well as our outlook for 2020. After that, we'll open the call up for questions.

Today, GATX reported 2019 fourth quarter net income of $56.6 million or $1.59 per diluted share. This compares to 2018 fourth quarter net income of $49.2 million or $1.30 per diluted share. 2019 fourth quarter results include a net casualty gain of $8.1 million or $0.23 per diluted share related to an insurance recovery for a damaged vessel at American Steamship Company. 2018 results include a net benefit of $17.3 million or $0.46 per diluted share related to tax adjustments and other items.

For the full-year 2019, GATX reported net income of $211.2 million or $5.81 per diluted share. This compares to net income of $211.3 million or $5.52 per diluted share in 2018. The 2019 and 2018 results include net positive impact of $10.9 million or $0.30 per diluted share and a $11.5 million or $0.30 per diluted share, respectively, associated with various tax adjustments and other items. These items are detailed on Page 13 of our earnings release.

In 2019, GATX repurchased nearly 2 million shares for approximately $150 million. This compares to our 2018 repurchase activity of 1.5 million shares for approximately $115.4 million. As of December 31st, 2019, we have approximately $150 million remaining under our existing repurchase authorization.

Lastly, as noted in the earnings release, we currently expect 2020 earnings to be in the range of $5.50 to $5.80 per diluted share.

With that, I will now turn the call over to Brian.

Executive
Brian A. Kenney

Okay. Thanks, Shari. Good morning, everyone. Those of you that have listened to our earnings calls for a while know that we're not a fan of long prepared comments and canned slide presentations at the beginning of these calls, and we like to get right to the Q&A. But if you'll indulge me for just a few minutes, I'd like to give you some color behind our recent performance and more detail on