Slide 1: Second Quarter 2013 Earnings Conference Call
Proprietary and Confidential | July 23, 2013 Second Quarter 2013 Earnings Conference Call 1 Exhibit 99.2
Slide 2: Safe Harbor and Non-GAAP Financial Measures
Proprietary and Confidential | 2 Safe Harbor and Non-GAAP Financial Measures 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 for future earnings and other
Slide 3: Contents
Proprietary and Confidential | 3 Contents ► Second Quarter 2013 Results Overview ►Asset Management Update ► Earnings Forecast ► Q & A
Slide 4: 2nd Quarter Results Overview
Proprietary and Confidential | 4 2nd Quarter Results Overview ► Earnings per diluted share from continuing operations were $1.19 in 2Q13 vs. $0.91 in 2Q12 – 2Q13 included net expense of $0.06 from non-operating pension costs – 2Q12 included net expense of $0.18 related to non-operating pension costs
Slide 5: Key Financial Statistics Second Quarter
Proprietary and Confidential | 5 Key Financial Statistics Second Quarter ($ Millions, Except Per Share Amounts) 2013 2012 % B/(W) Operating Revenue 1,313.3$ 1,266.6$ 4% Fuel Services and Subcontracted Transportation Revenue 290.6 297.3 (2)% Total Revenue 1,604.0$ 1,563.9$ 3% Earnings Per Share from
Slide 6: Key Financial Statistics Year-To-Date
Proprietary and Confidential | 6 Key Financial Statistics Year-To-Date ($ Millions, Except Per Share Amounts) 2013 2012 % B/(W) Operating Revenue 2,580.9$ 2,495.5$ 3% Fuel Services and Subcontracted Transportation Revenue 586.1 604.6 (3)% Total Revenue 3,167.0$ 3,100.1$ 2% Earnings Per Share from Co
Slide 7: 2nd Quarter Results Overview - FMS
Proprietary and Confidential | 7 2nd Quarter Results Overview - FMS ► Fleet Management Solutions (FMS) total revenue up 2% (and operating revenue up 3%) vs. prior year – Full service lease revenue up 4% – Contract maintenance revenue down 3% – Contract-related maintenance up 12% – Commercial rental
Slide 8: 2nd Quarter Results Overview - SCS
Proprietary and Confidential | 8 2nd Quarter Results Overview – SCS ► Supply Chain Solutions (SCS) total revenue up 5% (and operating revenue up 6%) vs. prior year due to new business, primarily in dedicated ► SCS earnings were higher reflecting new business offset by increased commissions. Addition
Slide 9: Business Segments - Second Quarter
Proprietary and Confidential | 9 Business Segments 2013 2012 % B/(W) 2013 2012 % B/(W) Operating Revenue: Fleet Management Solutions 852.5$ 830.9$ 3% 1,121.3$ 1,100.9$ 2% Supply Chain Solutions 514.8 485.7 6% 597.2 570.3 5% Eliminations (54.0) (50.0) (8)% (114.4) (107.3) (7)% Total 1,313.3$ 1,266.6$
Slide 10: Business Segments - Year-To-Date
Proprietary and Confidential | 10 Business Segments 2013 2012 % B/(W) 2013 2012 % B/(W) Operating Revenue: Fleet Management Solutions 1,676.5$ 1,623.6$ 3% 2,221.0$ 2,172.3$ 2% Supply Chain Solutions 1,009.6 970.3 4% 1,173.7 1,142.2 3% Eliminations (105.3) (98.4) (7)% (227.6) (214.3) (6)% Total 2,580
Slide 11: Capital Expenditures
Proprietary and Confidential | 11 Capital Expenditures 2013 $ 2013 2012 O/(U) 2012 Full Service Lease 778$ 786$ (8)$ Commercial Rental 171 500 (329) Operating Property and Equipment 40 32 8 Gross Capital Expenditures 989 1,317 (328) Less: Proceeds from Sales (primarily Revenue Earning Equipment) 229
Slide 12: Cash Flow from Continuing Operations
Proprietary and Confidential | 12 Cash Flow from Continuing Operations 2013 2012 Earnings from Continuing Operations 103$ 82$ Depreciation 466 460 Gains on Vehicle Sales, Net (46) (45) Amortization and Other Non-Cash Charges, Net 37 34 Pension Contributions (24) (40) Changes in Working Capital and D
Slide 13: Debt to Equity Ratio
Proprietary and Confidential | 13 Debt to Equity Ratio (1) Illustrates impact of accumulated net pension related equity charge on leverage. (2) Represents revised long term total obligations to equity target of 225 - 275% while maintaining a solid investment grade rating. (3) Total Equity includes i
Slide 14: Contents
Proprietary and Confidential | 14 Contents ► Second Quarter 2013 Results Overview ►Asset Management Update ► Earnings Forecast ► Q & A
Slide 15: Global Asset Management Update
Proprietary and Confidential | ► Units held for sale were 9,600 at quarter end, up from 9,200 units held for sale in the prior year ─ Sequentially from the first quarter, units held for sale decreased by 400 units ► The number of used vehicles sold in the second quarter was 6,000, down 3% from the p
Slide 16: Contents
Proprietary and Confidential | 16 Contents ► Second Quarter 2013 Results Overview ►Asset Management Update ► Earnings Forecast ► Q & A
Slide 17: EPS Forecast - Continuing Operations
Proprietary and Confidential | 17 EPS Forecast – Continuing Operations 2013 Comparable EPS Forecast(1) $ 1.41 - 1.46 $ 4.75 - 4.85 2012 Comparable EPS(2) $ 1.37 $ 4.41 Third Quarter Full Year ($ Earnings Per Share) (1) 2013 Comparable EPS Forecast, a non-GAAP financial measure, excludes from EPS for
Slide 18: Q&A
Proprietary and Confidential | Q&A 18
Slide 19: Appendix
Proprietary and Confidential | 19 Appendix Business Segment Detail Central Support Services Balance Sheet Financial Indicators Forecast Asset Management Non-GAAP Financial Measures & Reconciliations
Slide 20: Fleet Management Solutions (FMS) - Second Quarter
Proprietary and Confidential | 20 Fleet Management Solutions (FMS) 2013 2012 % B/(W) Full Service Lease 540.4$ 521.5$ 4% Contract Maintenance 45.3 46.5 (3)% Contractual Revenue 585.7 568.0 3% Contract-related Maintenance 52.1 46.5 12% Commercial Rental 196.5 198.7 (1)% Other 18.3 17.7 3% Operating R
Slide 21: Fleet Management Solutions (FMS) - Year-To-Date
Proprietary and Confidential | 21 Fleet Management Solutions (FMS) 2013 2012 % B/(W) Full Service Lease 1,073.6$ 1,032.0$ 4% Contract Maintenance 91.4 93.5 (2)% Contractual Revenue 1,165.0 1,125.5 4% Contract-related Maintenance 105.4 93.0 13% Commercial Rental 369.6 370.0 - Other 36.5 35.1 4% Opera
Slide 22: Supply Chain Solutions (SCS) - Second Quarter
Proprietary and Confidential | 22 Supply Chain Solutions (SCS) 2013 2012 % B/(W) Automotive 144.8$ 141.9$ 2% High-Tech 82.0 78.0 5% Retail & CPG 180.3 177.5 2% Industrial & Other 107.7 88.2 22% Operating Revenue 514.8 485.7 6% Subcontracted Transportation 82.4 84.5 (3)% Total Revenue 597.2$ 570.3$ 5
Slide 23: Supply Chain Solutions (SCS) - Year-To-Date
Proprietary and Confidential | 23 Supply Chain Solutions (SCS) 2013 2012 % B/(W) Automotive 293.4$ 281.7$ 4% High-Tech 159.8 158.3 1% Retail & CPG 356.1 356.3 - Industrial & Other 200.3 174.1 15% Operating Revenue 1,009.6 970.3 4% Subcontracted Transportation 164.0 171.8 (5)% Total Revenue 1,173.7$
Slide 24: Central Support Services (CSS) - Second Quarter
Proprietary and Confidential | 24 Central Support Services (CSS) 2013 2012 % B/(W) Allocated CSS Costs 41.5$ 37.5$ (11)% Unallocated CSS Costs 10.6 11.2 5 Total CSS Costs 52.1$ 48.7$ (7)% Second Quarter ($ Millions)
Slide 25: Central Support Services (CSS) - Year-To-Date
Proprietary and Confidential | 25 Central Support Services (CSS) 2013 2012 % B/(W) Allocated CSS Costs 81.5$ 76.6$ (6)% Unallocated CSS Costs 22.0 20.7 (6) Total CSS Costs 103.5$ 97.3$ (6)% Year-To-Date ($ Millions)
Slide 26: Balance Sheet
Proprietary and Confidential | 26 Balance Sheet June 30, December 31, 2013 2012 Cash and Cash Equivalents 73$ 66$ Other Current Assets 989 974 Revenue Earning Equipment, Net 5,988 5,755 Operating Property and Equipment, Net 627 625 Other Assets 883 899 Total Assets 8,560$ 8,319$ Short-Term Debt / Cu
Slide 27: Financial Indicators Forecast
Proprietary and Confidential | 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Forecast Midpoint Long Term Target Midpoint 27 Financial Indicators Forecast (1) (1) Total Obligations to Equity includes acquisitions. Free Cash Flow and Gross Capital Expenditures exclude acquisiti
Slide 28: Asset Management Update
Proprietary and Confidential | 28 Asset Management Update (a) (a) U.S. only (b) Excludes early terminations where customer purchases vehicle (c) Current year statistics may exclude some units due to a lag in reporting (b) (c) Number of Units 2,023 1,788 2,256 2,180 2,782 2,488 2,022 3,319 3,494 2,94
Slide 29: Non-GAAP Financial Measures
Proprietary and Confidential | 29 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. Non-GAAP financial measures
Slide 30: Earnings and EPS from Continuing Operations Reconciliation
Proprietary and Confidential | 30 Earnings and EPS from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) (1) The company uses Comparable Earnings and Comparable Earnings per Share (EPS) from Continuing Operations, both non-GAAP financial measures, which provide useful inform
Slide 31: EBT and Tax Rate from Continuing Operations Reconciliation
Proprietary and Confidential | 2Q13 - 2Q13 - 2Q13 - YTD13 - YTD13 - YTD13 - EBT Tax Tax Rate EBT Tax Tax Rate Reported 97.4$ 34.8$ 35.7% 159.9$ 56.5$ 35.3% Non-operating Pension Costs 5.0 2.1 10.2 4.2 Income from foreign currency translation - - (1.9) (0.01) Comparable (1) 102.4$ 36.9$ 36.0% 168.2$
Slide 32: Adjusted Return on Capital Reconciliation
Proprietary and Confidential | 32 Adjusted Return on Capital Reconciliation ($ Millions) (1) Earnings calculated based on a 12-month rolling period. (2) Interest expense includes interest on and off-balance sheet vehicle obligations. (3) Income taxes were calculated by excluding taxes related to com
Slide 33: Debt to Equity Reconciliation
Proprietary and Confidential | 33 Debt to Equity Reconciliation % to % to % to % to % to % to % to % to 12/31/00 Equity 12/31/01 Equity 12/31/02 Equity 12/31/03 Equity 12/31/04 Equity 12/31/05 Equity 12/31/06 Equity 12/31/07 Equity Balance Sheet Debt $2,017 161% $1,709 139% $1,552 140% $1,816 135% $
Slide 34: Debt to Equity Reconciliation
Proprietary and Confidential | 34 Debt to Equity Reconciliation ($ 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 6/30/2013 Equity 6/30/2012 Equity Balance Sheet
Slide 35: Free Cash Flow Reconciliation
Proprietary and Confidential | ($ Millions) 12/31/00 (1) 12/31/01 (1) 12/31/02 (1) 12/31/03 (1) 12/31/04 (1) 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 Cash Provided by Operating Activities 1,023$ 365$ 617$ 803$ 867$ 776$ 852$ 1,097$ 1,248$ 985$ Less: Changes in Bal. of Trade Rec. Sold (270) 235 1
Slide 36: Cash Flow Reconciliation
Proprietary and Confidential | 36 Cash Flow Reconciliation 12/31/10 12/31/11 12/31/12 6/30/13 6/30/12 Cash Provided by Operating Activities from Continuing Operations 1,028$ 1,042$ 1,134$ 564$ 472$ Proceeds from Sales (Primarily Revenue Earning Equipment) 235 300 413 229 199 Proceeds from Sale and L
Slide 37: Proprietary and Confidential |
Proprietary and Confidential |