Slide 1: Third Quarter 2009 Earnings Conference Call
Third Quarter 2009 Earnings Conference Call
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 Third Quarter 2009 Results Overview Asset Management Update Outlook Q & A
Slide 4: 3rd Quarter Results Overview
3rd Quarter Results Overview Earnings per diluted share from continuing operations were $0.51 vs. $1.29 in 3Q08 3Q09 included a $0.04 tax benefit related to contingent tax reversals, partially offset by $0.03 restructuring and other charge primarily related to debt extinguishment 3Q08 included a $0.
Slide 5: 3rd Quarter Results Overview: Fleet Management Solutions
3rd Quarter Results Overview Total revenue declined 20% vs. prior year, reflecting lower fuel services revenue, lower operating revenue and unfavorable foreign exchange rate movements Operating revenue down 13% vs. prior year driven by lower commercial rental revenue, SCS and DCC fuel revenues, auto
Slide 6: 3rd Quarter Results Overview: SCS and DCC
3rd Quarter Results Overview Supply Chain Solutions (SCS) total and operating revenue down 22% vs. prior year due largely to lower automotive and other freight volumes, lower fuel volumes and prices, and unfavorable foreign exchange impact SCS net before tax earnings (NBT) down 4% SCS NBT percent of
Slide 7: Key Financial Statistics Third Quarter
Key Financial Statistics Third Quarter Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the business and as a measure of sales activity. Fuel services revenue net of
Slide 8: Key Financial Statistics Year-to-Date
Key Financial Statistics Year-to-Date Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the business and as a measure of sales activity. Fuel services revenue net of
Slide 9: Business Segment Third Quarter
Business Segment Third Quarter Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Our primary measure of segment financial performance excludes restructuring and other charges, net and other items. The applicable portion of the restructuring and other items that related to
Slide 10: Business Segment Year-to-Date
Business Segment Year-to-Date Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Our primary measure of segment financial performance excludes restructuring and other charges, net and other items. The applicable portion of the restructuring and other items that related to e
Slide 11: Capital Expenditures from Continuing Operations Year-to-Date
Capital Expenditures from Continuing Operations Year-to-Date ($ Millions)
Slide 12: Cash Flow from Continuing Operations
Cash Flow from Continuing Operations (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 restric
Slide 13: Debt to Equity Ratio
Debt to Equity Ratio Note: Includes impact of accumulated net pension related equity charge of $478 million as of 9/30/09, $480 million as of 12/31/08 and $163 million as of 9/30/08. (1) Non-GAAP financial measure. Total obligations include the present value of minimum lease payments and guaranteed
Slide 14: Contents
Contents Third Quarter 2009 Results Overview Asset Management Update Outlook Q & A
Slide 15: Asset Management Update: Used Vehicles
Units held for sale were 7,800 (US: 6,300) at quarter end; up 42% from 5,500 (US: 4,600) units held for sale in the prior year Units held for sale were down 13% from 9,000 (US: 7,500) at the end of the prior quarter The number of used vehicles sold in the third quarter was 5,200 (US: 4,200), up 3% c
Slide 16: Contents
Contents Third Quarter 2009 Results Overview Asset Management Update Outlook Q & A
Slide 17: Outlook
Outlook Despite some improvements in automotive volumes and with used vehicle sales, anticipate weak economic environment to continue in near term Weak conditions expected to primarily impact FMS segment Lower lease sales will negatively impact revenue comparisons Weak demand expected to continue to
Slide 18: Q&A
Q&A
Slide 19: Appendix
Appendix Business Segment Detail Central Support Services Balance Sheet Historical EPS Restatement Asset Management Non-GAAP Financial Measures & Reconciliations
Slide 20: Fleet Management Solutions (FMS) Third Quarter
Fleet Management Solutions (FMS) Third Quarter ($ 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 in
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) Third Quarter
Supply Chain Solutions (SCS) Third Quarter 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 revenu
Slide 23: Supply Chain Solutions (SCS) Year-to-Date
Supply Chain Solutions (SCS) Year-to-Date 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 revenue
Slide 24: Supply Chain Solutions (SCS) Historical Information
Supply Chain Solutions (SCS) Historical Information ($ Millions) 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 arri
Slide 25: Dedicated Contract Carriage (DCC) Third Quarter
Dedicated Contract Carriage (DCC) Third 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 operati
Slide 26: 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 27: Central Support Services (CSS) Third Quarter
Central Support Services (CSS) Third Quarter ($ Millions)
Slide 28: Central Support Services (CSS) Year-to-Date
Central Support Services (CSS) Year-to-Date ($ Millions)
Slide 29: Balance Sheet
Balance Sheet (S Millions) September 30, December 31, ——2009_ _ 2008 Cash and Cash Eqi $ m1 $ 120 Other Current Assets 813 831 Revenue Earning Equij 4,320 4,565 Operating Property and Equipment, Net 549 547 Other Assets 661 626 Total Assets $ $ 6,690 Short-Term Debt / Current Portion Long-Term Debt
Slide 30: Historical EPS Restatement
Historical EPS Restatement ($ Earnings Per Share) (1) Effective January 1, 2009, we adopted accounting guidance on earnings per share which provides that unvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities and shall be included in the com
Slide 31: U.S. Asset Management Update
U.S. Asset Management Update (a) U.S. only Excludes early terminations where customer purchases vehicle Current year statistics may exclude some units due to a lag in reporting (b) Number of Units Redeployments Extensions Early Terminations Early Replacements 3QYTD04 3808 2174 3891 1099 3QYTD05 3032
Slide 32: 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 33: EPS and Net Earnings from Continuing Operations Reconciliation
EPS and Net Earnings from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share)
Slide 34: EPS and Net Earnings Reconciliation
EPS and Net Earnings Reconciliation ($ Millions or $ Earnings Per Share)
Slide 35: Tax Rate from Continuing Operations Reconciliation
Tax Rate from Continuing Operations Reconciliation Note: NBT represents net before tax earnings
Slide 36: Adjusted Return on Capital Reconciliation
Adjusted Return on Capital Reconciliation (1) Earnings calculated based on a 12-month rolling period excluding comparable earnings items during the period. (2) Interest expense includes implied interest on off-balance sheet vehicle obligations. (3) Income taxes were calculated using the effective in
Slide 37: 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 38: 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 39: Capital Expenditures Reconciliation Year-to-Date
Capital Expenditures Reconciliation Year-to-Date ($ Millions)
Slide 40: Cash Flow Reconciliation Year-to-Date
Cash Flow Reconciliation Year-to-Date ($ Millions)
Slide 41: TAyder
TAyder