Slide 1: Second Quarter 2008 Earnings Conference Call
Second Quarter 2008 Earnings Conference Call July 23, 2008
Slide 2: Safe Harbor
Safe Harbor Certain statements and information included in this presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertain
Slide 3: Contents
Contents Second Quarter 2008 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 4: 2nd Quarter Results Overview
2nd Quarter Results Overview Earnings per diluted share were $1.10 versus $1.07 in 2Q07 2Q08 included $0.12 charge for Brazil adjustments related to prior years Comparable earnings were $1.22 versus $1.07 in 2Q07 Comparable earnings above forecast of $1.10 - $1.20 due primarily to FMS contractual re
Slide 5: 2nd Quarter Results Overview (cont'd)
2nd Quarter Results Overview (cont'd) Supply Chain Solutions (SCS) total revenue down 25% vs. prior year due to change from gross to net revenue reporting for a supply chain subcontracted transportation customer SCS operating revenue up 6% vs. prior year, reflecting foreign exchange impact, higher f
Slide 6: Key Financial Statistics Second Quarter
Key Financial Statistics Second Quarter (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Comparable earnings per share exclude Brazil charges of $0.12 related to prior years. (2) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operati
Slide 7: Key Financial Statistics Year-to-Date
Key Financial Statistics Year-to-Date (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Comparable earnings per share exclude Brazil charges of $0.12 related to prior years. (2) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating
Slide 8: Business Segment Second Quarter
Business Segment Second Quarter (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Comparable net earnings exclude Brazil charges of $6.8 million related to prior years. (2) Includes impact of net revenue reporting for certain subcontracted transportation revenue previo
Slide 9: Business Segment Year-to-Date
Business Segment Year-to-Date (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Comparable net earnings exclude Brazil charges of $6.8 million related to prior years. (2) Includes impact of net revenue reporting for certain subcontracted transportation revenue previous
Slide 10: Capital Expenditures Year-to-Date
Capital Expenditures Year-to-Date ($ Millions)
Slide 11: Cash Flow
Cash Flow (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures (2) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment (3) Free Cash Flow excludes acquisitions and changes in restricted cash Year-to-Date ($ Mi
Slide 12: Debt to Equity Ratio
Debt to Equity Ratio Note: Includes impact of accumulated net pension related equity charge of $147 million as of 6/30/08, $148 million as of 12/31/07 and $185 million as of 6/30/07. (1) Non-GAAP financial measure. Total obligations include the present value of minimum lease payments and guaranteed
Slide 13: Financial Indicators Forecast
Financial Indicators Forecast (1) (1) Obligations to Equity and Assets Under Management include acquisitions. Free Cash Flow and Gross Capital Expenditures exclude acquisitions. (2) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (3) Includes $176 million payment to the
Slide 14: Contents
Contents Second Quarter 2008 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 15: Asset Management Update
Asset Management Update (1) (1) All information presented on this page only is for the U.S. fleet and excludes Canadian and U.K. operations (units rounded to nearest hundred). (2) Vehicles no longer earning revenue definition revised in 1Q08 to include all units held for sale and all units that have
Slide 16: Contents
Contents Second Quarter 2008 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 17: EPS Forecast
EPS Forecast (1) Non-GAAP financial measure. 2008 comparable EPS excludes Brazil charges related to prior years of $0.12. 2007 Comparable EPS excludes impact from restructuring costs in the third and fourth quarters, property gain in the third quarter and the fourth quarter tax law changes totaling
Slide 18: Q&A
Q&A
Slide 19: Appendix
Appendix Business Segment Detail Central Support Services Balance Sheet Asset Management Financial Indicators Forecast Non-GAAP Financial Measures & Reconciliations
Slide 20: Fleet Management Solutions (FMS) Second Quarter
Fleet Management Solutions (FMS) Second Quarter ($ Millions) (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the FMS business segment and as a measure of sales activity. Fuel services revenue, which is directly impacted by fluctuations i
Slide 21: Fleet Management Solutions (FMS) Year-to-Date
Fleet Management Solutions (FMS) Year-to-Date ($ Millions) (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the FMS business segment and as a measure of sales activity. Fuel services revenue, which is directly impacted by fluctuations in
Slide 22: Supply Chain Solutions (SCS) Second Quarter
Supply Chain Solutions (SCS) Second Quarter (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the SCS business segment and as a measure of sales activity. Subcontracted transportation is deducted from total revenue to arrive at operating r
Slide 23: Supply Chain Solutions (SCS) Year-to-Date
Supply Chain Solutions (SCS) Year-to-Date (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the SCS business segment and as a measure of sales activity. Subcontracted transportation is deducted from total revenue to arrive at operating rev
Slide 24: Dedicated Contract Carriage (DCC) Second Quarter
Dedicated Contract Carriage (DCC) Second Quarter (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the DCC business segment and as a measure of sales activity. Subcontracted transportation is deducted from total revenue to arrive at operat
Slide 25: Dedicated Contract Carriage (DCC) Year-to-Date
Dedicated Contract Carriage (DCC) Year-to-Date (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the DCC business segment and as a measure of sales activity. Subcontracted transportation is deducted from total revenue to arrive at operatin
Slide 26: Central Support Services (CSS) Second Quarter
Central Support Services (CSS) Second Quarter ($ Millions)
Slide 27: Central Support Services (CSS) Year-to-Date
Central Support Services (CSS) Year-to-Date ($ Millions)
Slide 28: Balance Sheet
a Cityder Balance Sheet ( Millions) June 30, December 31, 2008 _2007 Cash and Cash Equivalents $ 107 116 Other Current Assets 1,038 1,106 Revenue Earning Equipment, Net 4679 4501 Operating Property and Equipment, Net 555 519 Other Assets 689 613 Total Assets $ 7068 _$ 6,855 Short-Term Debt / Current
Slide 29: Asset Management Update
Asset Management Update (a) (a) U.S. only (b) Excludes early terminations where customer purchases vehicle (b) Redeployments Extensions Early Terminations Early Replacements 2QYTD 03 2895 2444 2684 465 2QYTD 04 2977 1544 2759 577 2QYTD 05 1959 1728 2341 883 2QYTD 06 2037 1985 1952 739 2QYTD 07 2102
Slide 30: Assets Under Management
Assets Under Management (a) (a) Assets under management represent the original cost of all vehicles owned and held under lease by Ryder. ($ Millions)
Slide 31: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 and an explanation why management believes that presentation of t
Slide 32: EPS and Net Earnings Reconciliation
EPS and Net Earnings Reconciliation ($ Millions or $ Earnings Per Share) Note: The Brazil charges may not recalculate on an individual basis due to rounding.
Slide 33: Adjusted Return on Capital Reconciliation
Adjusted Return on Capital Reconciliation (1) Earnings calculated based on a 12-month rolling period excluding comparable earning items during the period. (2) Interest expense includes implied interest on off-balance sheet vehicle obligations. (3) Income taxes were calculated using the effective inc
Slide 34: Cash Flow Reconciliation
Cash Flow Reconciliation (1) The Company uses total cash generated, a non-GAAP financial measure, because management considers it to be an important measure of comparative operating performance. Management believes total cash generated provides investors with an important measure of total cash inflo
Slide 35: Cash Flow Reconciliation
Cash Flow Reconciliation (1) The Company uses total cash generated, a non-GAAP financial measure, because management considers it to be an important measure of comparative operating performance. Management believes total cash generated provides investors with an important measure of total cash inflo
Slide 36: Debt to Equity Reconciliation
Debt to Equity Reconciliation Note: In connection with adopting FIN 46 effective July 1, 2003, the Company consolidated the vehicle securitization trusts previously disclosed as off-balance sheet debt. (1) The Company uses total obligations and total obligations to equity, non-GAAP financial measure
Slide 37: Debt to Equity Reconciliation
Debt to Equity Reconciliation (1) The Company uses total obligations and total obligations to equity, non-GAAP financial measures, which include certain off-balance sheet financial obligations relating to revenue earning equipment. Management believes these non-GAAP financial measures are useful to
Slide 38: 1933-2008
1933-2008