Slide 1: Second Quarter 2006 Earnings Conference Call
Second Quarter 2006 Earnings Conference Call July 27, 2006
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 2006 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 4: 2nd Quarter Results Overview
2nd Quarter Results Overview Earnings per diluted share were $1.13, up 15% from $0.98 in 2Q05 2Q06 and 2Q05 included $0.11 and $0.12 income tax benefit, respectively Comparable earnings per diluted share were $1.02, up 19% from $0.86 in 2Q05 Total revenue up 15% and operating revenue up 6% reflectin
Slide 5: 2nd Quarter Results Overview (cont'd)
2nd Quarter Results Overview (cont'd) Supply Chain Solutions (SCS) total revenue up 34% (and operating revenue up 17%) vs. prior year, reflecting increased managed subcontracted transportation, higher volumes, and new and expanded business SCS net before tax earnings (NBT) up 117% SCS NBT percent of
Slide 6: Key Financial Statistics Second Quarter
Key Financial Statistics Second Quarter (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (2) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the business and as a measure of sales activity. Fuel services reven
Slide 7: Key Financial Statistics Year-to-Date
Key Financial Statistics Year-to-Date (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (2) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the business and as a measure of sales activity. Fuel services revenue
Slide 8: Business Segment Second Quarter
Business Segment Second Quarter (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. ($ Millions)
Slide 9: Business Segment Year-to-Date
Business Segment Year-to-Date ($ Millions) (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures.
Slide 10: Capital Expenditures Year-to-Date
Capital Expenditures Year-to-Date ($ Millions)
Slide 11: Free Cash Flow
Free Cash Flow (1) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment (2) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures Year-to-Date ($ Millions)
Slide 12: Debt to Equity Ratio
Debt to Equity Ratio Note: Includes impact of accumulated net pension related equity charge of $221 million as of 6/30/06 and 12/31/05, and $189 million as of 6/30/05. (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (2) Represents long term total obligations to equit
Slide 13: Capital Expenditures Outlook
Capital Expenditures Outlook Strong new lease sales activity driving higher expected full year 2006 capital spending. No material change in replacement lease capital forecast. Increased capital spending would largely impact 2007 lease revenue and earnings. No material change to 2006 lease revenues d
Slide 14: Ryder Cash & Growth Equation Outlook
Ryder Cash & Growth Equation Outlook Cash Capital Expenditures Significant and predictable cash generation ... Investing in equipment replacement and growth ... Net income, depreciation & used vehicles driving cash Growth Exceeding 2006 Plan Free Cash Flow (d) $140 MM $(221) MM (c) $(300) MM (a) Use
Slide 15: Ryder Cash & Growth Equation Outlook
2004 2005 2006 7.3 7.5 7.9 2004 2005 2006 331 357 400 Driving growth in Assets Under Management (AUM) ... Driving income growth and a strong balance sheet Total Obligations / Equity % (a) 129% 151% 159% Assets Under Management Earnings Before Income Taxes 8.2% 20.8% $ B $ MM Driving Growth Well Posi
Slide 16: Contents
Contents Second Quarter 2006 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 17: Asset Management Update
Asset Management Update Note: U.S. only The overall number of used vehicles sold in the second quarter was 5,375; down 6% compared with prior year Retail vehicles sold were up 1% vs. prior year period Retail sales proceeds per unit were up 4% on tractors and down 1% on trucks in the second quarter c
Slide 18: Contents
Contents Second Quarter 2006 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 19: Earnings Outlook
Earnings Outlook ($ Earnings Per Share) Increasing our full year 2006 earnings forecast which, including the $0.11 tax benefit, is now $4.00 to $4.10 per share. Current quarterly forecast for EPS is as follows:
Slide 20: Q & A
Q & A
Slide 21: Appendix
Appendix Business Segment Detail Central Support Services Balance Sheet Asset Management Financial Indicators Forecast Non-GAAP Financial Measures & Reconciliations
Slide 22: Fleet Management Solutions (FMS) Second Quarter
Fleet Management Solutions (FMS) Second Quarter (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 market fuel
Slide 23: Fleet Management Solutions (FMS) Year-to-Date
Fleet Management Solutions (FMS) Year-to-Date (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 market fuel p
Slide 24: 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 25: 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 26: 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 27: 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 28: Central Support Services (CSS) Second Quarter
Central Support Services (CSS) Second Quarter ($ Millions)
Slide 29: Central Support Services (CSS) Year-to-Date
Central Support Services (CSS) Year-to-Date ($ Millions)
Slide 30: Balance Sheet
Balance Sheet (8 Millions) June 30, December 31, 2006 2005 Cash and Cash Equivalents $ a5 128.7 Other Current Assets 11478 1,035.1 Revenue Earning Equipment, Net 41247 37944 Operating Property and Equipment, Net 486.8 486.8 Other Assets 5797 588.3 Total Assets $ 64215 $ 6,033.3 Short-Term Debt /Curr
Slide 31: Asset Management Update
Redeployments Extensions Early Terminations Early Replacements 1H01 2323 1500 3502 903 1H02 3357 2983 3284 601 1H03 2895 2444 2684 465 1H04 2977 1544 2354 577 1H05 1959 1728 2355 884 1H06 2037 1985 1877 708 Asset Management Update (a) (a) U.S. only (b) Excludes early terminations where customer purc
Slide 32: Financial Indicators Forecast
Financial Indicators Forecast (1) (1) Free Cash Flow and Debt to Equity include acquisitions. Gross Capital Expenditures exclude acquisitions. (2) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (3) Includes $176 million payment to the IRS related to full resolution of 1
Slide 33: Assets Under Management
Assets Under Management (a) ($ Millions) (a) Assets under management represent the original cost of all vehicles owned and held under lease by Ryder. (b) Excludes impact of foreign exchange movements in 2006.
Slide 34: 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 35: EPS and Net Earnings Reconciliation
EPS and Net Earnings Reconciliation ($ Millions or $ Earnings Per Share) * Earnings per share amounts are calculated independently for each component and may not be additive due to rounding
Slide 36: Adjusted Return on Capital Reconciliation
Adjusted Return on Capital Reconciliation (1) Earnings calculated based on a 12-month rolling period. (2) Interest expense includes implied interest on off-balance sheet vehicle obligations. (3) Income taxes were calculated using the effective income tax rate for the period exclusive of tax benefits
Slide 37: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (1) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment. (2) The Company uses free cash flow, a non-GAAP financial measure, because management considers it to be an important measure of comparative operatin
Slide 38: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (1) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment. (2) The Company uses free cash flow, a non-GAAP financial measure, because management considers it to be an important measure of comparative operatin
Slide 39: 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 40: 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 41: Cityder
Cityder