Slide 1: First Quarter 2015 Earnings Conference Call
First Quarter 2015 Earnings Conference Call April 22, 2015
Slide 2: Safe Harbor and Non-GAAP Financial Measures
© 2015 Ryder System, Inc. All Rights Reserved. Safe Harbor and Non-GAAP Financial Measures 2 Certain statements and information included in this presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995, including our expectations regarding earn
Slide 3: Contents
© 2015 Ryder System, Inc. All Rights Reserved. Contents 3 ► First Quarter 2015 Results Overview ►Asset Management Update ►Earnings Forecast ► Q & A
Slide 4: 1st Quarter Results Overview
© 2015 Ryder System, Inc. All Rights Reserved. 1st Quarter Results Overview 4 ► Comparable earnings per share from continuing operations were $1.08 vs. $0.92 in 1Q14 ► Earnings per diluted share from continuing operations were $1.00 in 1Q15 vs. $0.92 in 1Q14 – 1Q15 included non-operating pension cos
Slide 5: Key Financial Statistics
© 2015 Ryder System, Inc. All Rights Reserved. Key Financial Statistics 5 First Quarter ($ Millions, Except Per Share Amounts) Operating Revenue Fuel and Subcontracted Transportation Total Revenue Comparable Earnings Per Share from Continuing Operations Earnings Per Share from Continuing Operations
Slide 6: 1st Quarter Results Overview – FMS
© 2015 Ryder System, Inc. All Rights Reserved. 1st Quarter Results Overview – FMS 6 ► Fleet Management Solutions (FMS) operating revenue up 5% (up 7% excluding foreign exchange) and total revenue down 4% vs. prior year – Full service lease revenue up 5% (up 6% excluding foreign exchange) – Contract
Slide 7: 1st Quarter Results Overview – DTS
© 2015 Ryder System, Inc. All Rights Reserved. 1st Quarter Results Overview – DTS 7 ► Dedicated Transportation Solutions (DTS) operating revenue up 6% and total revenue down 2% vs. prior year – Operating revenue increased due to new business and higher volumes – Total revenue down due to lower fuel
Slide 8: 1st Quarter Results Overview – SCS
© 2015 Ryder System, Inc. All Rights Reserved. 1st Quarter Results Overview – SCS 8 ► Supply Chain Solutions (SCS) operating revenue up 4% (up 6% excluding foreign exchange) and total revenue down 3% vs. prior year – Operating revenue increased due to new business and higher volumes primarily in the
Slide 9: Business Segments
© 2015 Ryder System, Inc. All Rights Reserved. Business Segments 9 2015 2014 Operating Revenue: Fleet Management Solutions 899.2$ 859.9$ Dedicated Transportation Solutions 165.8 156.2 Supply Chain Solutions 295.4 284.5 Eliminations (60.2) (57.9) Total 1,300.3$ 1,242.8$ Segment Earnings Before Tax: (
Slide 10: Capital Expenditures
© 2015 Ryder System, Inc. All Rights Reserved. Capital Expenditures 10 Full Service Lease Commercial Rental Operating Property and Equipment Gross Capital Expenditures Less: Proceeds from Sales (Primarily Revenue Earning Equipment) Sale an Leaseb ck of Assets Net Capital Expenditures 2015 $ 2015 201
Slide 11: Cash Flow from Continuing Operations
© 2015 Ryder System, Inc. All Rights Reserved. Cash Flow from Continuing Operations 11 Earnings from Continuing Operations Depreciation Gains on Vehicle Sales, Net Amortization and Other Non-Cash Charges, Net Pension ContributionsSettlement Loss Changes in Working Capital and Deferred Taxes Cash Pro
Slide 12: Debt to Equity Ratio
© 2015 Ryder System, Inc. All Rights Reserved. Debt to Equity Ratio 12 3/31/2015 12/31/2014 3/31/2014 Balance Sheet Debt 4,704$ 4,512$ 4,447$ Percent To Equity 260% 248% 234% Total Obligations 4,890$ 4,706$ 4,542$ Percent To Equity 270% 259% 239% Total Equity (3) 1,812$ 1,819$ 1,899$ Balance 213% 17
Slide 13: Contents
© 2015 Ryder System, Inc. All Rights Reserved. Contents 13 ► First Quarter 2015 Results Overview ►Asset Management Update ► Earnings Forecast ► Q & A
Slide 14: Global Asset Management Update
© 2015 Ryder System, Inc. All Rights Reserved. ► Units held for sale were 5,800 at quarter end, down from 7,200 units held for sale in the prior year ─ Sequentially from the fourth quarter, units held for sale increased by 300 units ► The number of used vehicles sold in the first quarter was 4,300,
Slide 15: Contents
© 2015 Ryder System, Inc. All Rights Reserved. Contents 15 ► First Quarter 2015 Results Overview ►Asset Management Update ► Earnings Forecast ► Q & A
Slide 16: EPS Forecast – Continuing Operations
© 2015 Ryder System, Inc. All Rights Reserved. EPS Forecast – Continuing Operations 16 Second Quarter Full Year 2015 Comparable EPS Forecast(1) $ 1.58 - 1.63 $ 6.40 - 6.55 2014 Comparable EPS (2) $ 1.44 $ 5.58 ($ Earnings Per Share) (1) 2Q15 Comparable EPS Forecast, a non-GAAP financial measure, exc
Slide 17: Q&A
© 2015 Ryder System, Inc. All Rights Reserved. Q&A 17
Slide 18: Appendix
© 2015 Ryder System, Inc. All Rights Reserved. Appendix 18 Full Service Lease Vehicle Count Business Segment Detail Central Support Services Balance Sheet Capital Expenditures, Cash Flow & Leverage Forecast Financial Indicators Forecast Adjusted Return on Capital History Asset Management Non-GAAP Fi
Slide 19: Full Service Lease (FSL) Fleet Count
© 2015 Ryder System, Inc. All Rights Reserved. End of Period 1Q14 2Q14 3Q14 4Q14 1Q15 FSL Fleet (as reported) 123,300 123,000 123,200 125,500 127,500 4,200 UK FSL Trailers 4,800 4,600 4,300 4,400 4,400 (400) FSL Fleet - excluding UK 118,500 118,400 118,900 121,100 123,100 4,600 Sequential Change 2Q1
Slide 20: Fleet Management Solutions (FMS)
© 2015 Ryder System, Inc. All Rights Reserved. Fleet Management Solutions (FMS) 20 Revenue 2015 2014 % B/(W) Full Service Lease 577.1$ 552.2$ 5% Contract Maintenance 46.0 43.7 5% Contractual Revenue 623.1 595.9 5% Commercial Rental 205.1 190.2 8% Contract-related Maintenance 53.1 56.1 (5)% Other 17.
Slide 21: Dedicated Transportation Solutions (DTS)
© 2015 Ryder System, Inc. All Rights Reserved. Dedicated Transportation Solutions (DTS) 21 ($ Millions) Revenue 2015 2014 Operating Revenue 165.8$ 156.2$ Subcontracted Transportation 14.6 16.2 Fuel Costs 32.2 43.5 Total Revenue 212.7$ 216.0$ Earnings Before Tax Segment Earnings Before Tax (EBT) 9.0$
Slide 22: Supply Chain Solutions (SCS)
© 2015 Ryder System, Inc. All Rights Reserved. Supply Chain Solutions (SCS) 22 ($ Millions) Revenue 2015 2014 Automotive 109.2$ 114.3$ Technology & Healthcare 59.3 51.0 CPG & Retail 102.7 93.6 Industrial & Other 24.3 25.7 Operating Revenue 295.4 284.5 Subcontracted Transportation 58.2 70.0 Fuel Cost
Slide 23: Central Support Services (CSS)
© 2015 Ryder System, Inc. All Rights Reserved. Central Support Services (CSS) 23 2015 2014 % B/(W) Allocated CSS Costs 48.8$ 48.2$ (1)% Unallocated CSS Costs 11.9 10.8 (10)% Total CSS Costs 60.7$ 59.1$ (3) Fourth Quarter ($ Millions)
Slide 24: Balance Sheet
© 2015 Ryder System, Inc. All Rights Reserved. Balance Sheet 24 Current Assets Revenue Earning Equipment, Net Operating Property and Equipment, Net Other Assets Total Assets Current Liabilities Total Debt Other Non-Current Liabilities (including Deferred Income Taxes) Shareholders' Equity Total Liab
Slide 25: Capital Expenditures, Cash Flow & Leverage Forecast
© 2015 Ryder System, Inc. All Rights Reserved. Capital Expenditures, Cash Flow & Leverage 25 Full Service Lease - Replacement Full Service Lease - Growth Full Service Lease Commercial Rental - Replacement Commercial Rental - Growth Commercial Rental Operating Property and Equipment Gross Capital Exp
Slide 26: Financial Indicators Forecast
© 2015 Ryder System, Inc. All Rights Reserved. 2008 2009 2010 2011 2012 2013 2014 2015 Forecast Midpoint Long Term Target Midpoint Financial Indicators Forecast (1) 26 (1) Total Obligations to Equity includes acquisitions. Free Cash Flow and Gross Capital Expenditures exclude acquisitions. (2) Illus
Slide 27: Adjusted Return on Capital History
© 2015 Ryder System, Inc. All Rights Reserved. Adjusted Return on Capital History Adjusted Return on Capital (ROC) 6.8% 6.7% 6.6% 6.5% 6.3% 6.1% 5.5% 4.8% 4.7% 4.7% 4.6% 7.8% 7.9% 7.4% 7.3% 4.1% 4.8% 5.7% 5.6% 5.7% 5.8% 6.0 - 6.1% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Forecast Cost
Slide 28: Asset Management Update (US Only)
© 2015 Ryder System, Inc. All Rights Reserved. (a) Current year statistics may exclude some units due to a lag in reporting (b) Excludes early terminations where customer purchases vehicle (a)(b) Redeployments – Vehicles coming off-lease or in Rental with useful life remaining are redeployed in the
Slide 29: Non-GAAP Financial Measures
© 2015 Ryder System, Inc. All Rights Reserved. Non-GAAP Financial Measures 29 ► This presentation includes “non-GAAP financial measures” as defined by SEC rules. As required by SEC rules, we provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure. Non-GAAP fin
Slide 30: Revenue Growth excluding Foreign Exchange Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. 30 Revenue Growth excluding Foreign Exchange Reconciliation 2015 vs 2014 Growth Rate Fx Impact (1) Growth excl Fx RSI Operating Revenue 5% (2)% 7% FMS Operating Revenue 5% (2)% 7% SCS Operating Revenue 4% (2)% 6% Full Service Lease Revenue 5% (1)% 6% Co
Slide 31: Earnings and EPS from Continuing Operations Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. Earnings and EPS from Continuing Operations Reconciliation 31 1Q15 - 1Q15 - 1Q14 - 1Q14 - Earnings EPS Earnings EPS Reported 53.5$ 1.00$ 49.1$ 0.92$ Non-operating pension costs 2.8 0.06 1.9 0.03 Tax law change benefit - - (1.8) (0.03) Professional fees
Slide 32: EBT and Tax Rate from Continuing Operations Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. 1Q15- 1Q15- 1Q15- EBT Tax Tax Rate Reported 84.4$ 30.9$ 36.7% Non-operating pension costs 4.9 2.1 Professional fees 1.8 0.7 Comparable (1) 91.1$ 33.7$ 37.0% 1Q14 - 1Q14 - 1Q14 - EBT Tax Tax Rate Reported 75.0$ 25.9$ 34.5% Non-operating pension costs 3.3
Slide 33: Adjusted Return on Capital Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. 33 Adjusted Return on Capital Reconciliation ($ Millions) 1Q14 1Q15 Net Earnings (1) 246$ 223$ Restructuring and Other Charges, Net and Other Items 2 117 Income Taxes 130 123 Adjusted Earnings Before Income Taxes 378 463 Adjusted Interest Expense (2) 14
Slide 34: Debt to Equity Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. Debt to Equity Reconciliation 34 ($ Millions) Note: Amounts may not recalculate due to rounding. % to % to % to % to % to % to % to 12/31/2008 Equity 12/31/2009 Equity 12/31/2010 Equity 12/31/2011 Equity 12/31/2012 Equity 12/31/2013 Equity 12/31/2014 Eq
Slide 35: Debt to Equity Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. Debt to Equity Reconciliation 35 ($ Millions) Note: Amounts may not recalculate due to rounding. Balance Sheet Debt Receivables Sold PV of minimum lease payments and guaranteed residual values under operating leases for vehicles Total Obligations % to %
Slide 36: Free Cash Flow Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 3/31/15 3/31/14 Cash Provided by Operating Activities 1,248$ 985$ 1,028$ 1,042$ 1,134$ 1,223$ 1,370$ 278$ 238$ Collections of Direct Finance Leases 61 65 62 62 72 71 66 16 16 Proceeds from S
Slide 37: © 2015 Ryder System, Inc. All Rights Reserved.
© 2015 Ryder System, Inc. All Rights Reserved.