GATX Corporation (NYSE:GATX) Q1 2023 Earnings Call Transcript

Bascome Majors: Yeah, thanks for taking the follow-up here. As we look out, if we get to mid-year and it feels like there’s an upward sort of momentum to the guidance. Can you talk about the most likely drivers of what could give you the comfort to raise that, if from where you sit today and specifically, to the cadence, do you have any visibility into the lumpiness of the North American gains on sale, whether the books will be more concentrated in Q3, Q4, as we think about modelling going forward? Thank you.

Bob Lyons: Yeah. So Bascome, purely as a mathematical exercise, the item that most likely to provide a material upside or downside to guidance does relate to those secondary market activities just because of the scale and the lumpiness. But what we really tend to focus on due to the long-term nature of our business is what’s going on with utilization, what’s going on with lease rates, and there we would see any kind of variance from expectation show up in the operating statistic before it would show up in the financial results. Having said all that, as we mentioned several times on the call, half of those operating statistics are performing in line with expectations and as it relates specifically to the secondary market, we expect that to continue to be strong for the reasons we’ve given. Calling a cadence or timing on that, we’ve repeatedly noted is very challenging and we don’t really try to do it.

Operator: And Ms. Hellerman, it appears we have no further questions this morning. I’ll turn the conference back to you.

Shari Hellerman: I’d like to thank everyone for their participation on the call this morning. Please contact me with any follow-up questions. Thank you.

Operator: Thank you, Ms. Hellerman. Again, ladies and gentlemen, that will conclude this morning’s GATX 2023 first quarter earnings call. We’d like to thank you all so much for joining us and wish you all a great day.