Ryder System, Inc. · NYSE:R

Ryder System — Q1 2011 Earnings Presentation

34 slides from Ryder System's earnings presentation, Apr 26, 2011

  1. Slide 1: First Quarter 2011 Earnings Conference Call

    First Quarter 2011 Earnings Conference Call April 26, 2011

  2. 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

  3. Slide 3: Contents

    Contents ► First Quarter 2011 Results Overview ► Asset Management Update ► Earnings Outlook ►Q & A 4/26/2011 © 2011 Ryder System, Inc. All rights reserved. 3

  4. Slide 4: 1st Quarter Results Overview

    1st Quarter Results Overview ► Earnings per diluted share from continuing operations were $0.50 in 1Q11 vs. $0.24 in 1Q10 – 1Q11 included a $0.01 charge for acquisition-related items ► Comparable earnings per share from continuing operations were $0.51 in 1Q11 vs. $0.24 in 1Q10 ► Total revenue incre

  5. Slide 5: 1st Quarter Results Overview - FMS

    1st Quarter Results Overview - FMS ► Fleet Management Solutions (FMS) total revenue up 11% (and operating revenue up 6%) vs. prior year – Contractual revenue unchanged – Full service lease revenue up 1% – Contract maintenance revenue decreased 4% – Commercial rental revenue up 34% – Fuel revenue up

  6. Slide 6: 1st Quarter Results Overview – SCS / DCC

    1st Quarter Results Overview – SCS / DCC ► Supply Chain Solutions (SCS) total revenue up 36% (and operating revenue up 36%) vs. prior year due to the TLC acquisition and increased freight volumes ► SCS net before tax earnings (NBT) up 72% – SCS NBT percent of operating revenue up 80 basis points to

  7. Slide 7: Key Financial Statistics

    Key Financial Statistics ($ Millions, Except Per Share Amounts) First Quarter 2011 2010 % B/(W) Operating Revenue (1) $ 1,129.1 $ 987.6 14% Fuel Services and Subcontracted Transportation Revenue 296.2 232.3 28% Total Revenue $ 1,425.4 $ 1,219.9 17% Earnings Per Share From Continuing Operations $ 0.5

  8. Slide 8: Business Segments

    Business Segments ($ Millions) First Quarter Memo: Total Revenue 2011 2010 % B/(W) 2011 2010 % B/(W) Operating Revenue: (1) Fleet Management Solutions $ 719.0 $ 677.4 6% $ 980.1 $ 884.0 11% Supply Chain Solutions 324.3 238.2 36% 401.0 294.2 36% Dedicated Contract Carriage 128.4 112.0 15% 134.7 116.3

  9. Slide 9: Capital Expenditures from Continuing Operations

    Capital Expenditures from Continuing Operations ($ Millions) First Quarter 2011 $ 2011 2010 O/(U) 2010 Full Service Lease $ 112 $ 121 $ (9) Commercial Rental 317 142 175 Operating Property and Equipment 18 13 6 Gross Capital Expenditures 448 276 172 Less: Proceeds from Sales (Primarily Revenue Earni

  10. Slide 10: Cash Flow from Continuing Operations

    Cash Flow from Continuing Operations ($ Millions) First Quarter 2011 2010 Earnings $ 26 $ 13 Depreciation 206 211 Gains on Vehicle Sales, Net (12) (5) Amortization and Other Non-Cash Charges, Net 12 14 Pension Contributions (4) (4) Changes in Working Capital and Deferred Taxes (10) 42 Cash Provided

  11. Slide 11: Debt to Equity Ratio

    Debt to Equity Ratio ($ Millions) 300% 275% 275% 234% 225% 250% 202% 201% 183% 203% 200% 168% 157% Total Obligations 146% 151% to Equity(1) 150% 129% 100% Balance Sheet Debt to Equity 50% 0% 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 3/31/11 Lo

  12. Slide 12: Contents

    Contents ► First Quarter 2011 Results Overview ► Asset Management Update ► Earnings Outlook ►Q &A 4/26/2011 © 2011 Ryder System, Inc. All rights reserved. 12

  13. Slide 13: Global Asset Management Update

    (1) Global Asset Management Update ► Units held for sale were 5,000 at quarter end; down 26% from 6,800 units held for sale in the prior year – Units held for sale were down 4% from 5,200 at the end of the prior quarter ► The number of used vehicles sold in the first quarter were 4,100, down 13% com

  14. Slide 14: Contents

    Contents ► First Quarter 2011 Results Overview ► Asset Management Update ► Earnings Outlook ►Q & A 4/26/2011 © 2011 Ryder System, Inc. All rights reserved. 14

  15. Slide 15: EPS Forecast – Continuing Operations

    EPS Forecast – Continuing Operations ($ Earnings Per Share) ► Increasing full year 2011 EPS forecast from $2.80 – 2.90 to $2.90 – 3.00 ► Current forecast is as follows: Second Quarter Full Year 2011 Comparable EPS Forecast (1) $ 0.72 - 0.77 $ 2.90 - 3.00 2010 Comparable EPS (1) $0.58 $2.22 (1) Non-G

  16. Slide 16: Q&A

    Q&A 4/26/2011 © 2011 Ryder System, Inc. All rights reserved. 16

  17. Slide 17: Appendix

    Appendix Business Segment Detail Central Support Services Balance Sheet Asset Management Financial Indicators Forecast Non-GAAP Financial Measures & Reconciliations 4/26/2011 © 2011 Ryder System, Inc. All rights reserved. 17

  18. Slide 18: Fleet Management Solutions (FMS)

    Fleet Management Solutions (FMS) ($ Millions) First Quarter 2011 2010 % B/(W) Full Service Lease $ 483.3 $ 479.4 1% Contract Maintenance 38.1 39.8 (4)% Contractual Revenue 521.4 519.2 - Contract-related Maintenance 44.7 40.2 11% Commercial Rental 135.7 101.6 34% Other 17.3 16.4 5% Operating Revenue

  19. Slide 19: Supply Chain Solutions (SCS)

    Supply Chain Solutions (SCS) ($ Millions) First Quarter 2011 2010 % B/(W) Automotive $ 122.7 $ 106.6 15% High-Tech 56.9 51.6 10% Retail & CPG 104.1 41.8 149% Industrial & Other 40.6 38.2 6% Operating Revenue 324.3 238.2 36% Subcontracted Transportation 76.7 56.0 37% Total Revenue $ 401.0 $ 294.2 36%

  20. Slide 20: Dedicated Contract Carriage (DCC)

    Dedicated Contract Carriage (DCC) ($ Millions) First Quarter 2011 2010 % B/(W) Operating Revenue $ 128.4 $ 112.0 15% Subcontracted Transportation 6.3 4.3 47% Total Revenue $ 134.7 $ 116.3 16% Segment Net Before Tax Earnings (NBT) $ 7.4 $ 7.4 - Segment NBT as % of Total Revenue 5.5% 6.3% Segment NBT

  21. Slide 21: Central Support Services (CSS)

    Central Support Services (CSS) ($ Millions) First Quarter 2011 2010 % B/(W) Allocated CSS Costs $ 36.8 $ 33.5 (10)% Unallocated CSS Costs 8.7 8.9 2% Total CSS Costs $ 45.5 $ 42.4 (7)% 4/26/2011 © 2011 Ryder System, Inc. All rights reserved. 21

  22. Slide 22: Balance Sheet

    Balance Sheet ($ Millions) March 31, December 31, 2011 2010 Cash and Cash Equivalents $ 156 $ 213 Other Current Assets 889 810 Revenue Earning Equipment, Net 4,458 4,201 Operating Property and Equipment, Net 616 607 Other Assets 864 821 Total Assets $ 6,982 $ 6,652 Short-Term Debt / Current Portion

  23. Slide 23: U.S. Asset Management Update

    (a) U.S. Asset Management Update Number of Units (b) (c) (c) (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 4/26/2011 © 2011 Ryder System, Inc. All rights reserved. 23

  24. Slide 24: Financial Indicators Forecast

    Financial Indicators Forecast (1) Total Cash Generated (2) (3) Gross Capital Expenditures (3) ($ Millions) Full Service Lease $ 1,684 Commercial Rental $ 1,571 $1,757 $1,755 $ 1,465 PP&E/Other $ 1,381 $ 1,328 $ 1,252 $ 1,266 $1,399 $ 1,179 $ 1,054 $ 1,091 $1,289 $1,182 $1,265 $ 949 $1,165 $1,088 $ 8

  25. Slide 25: 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

  26. Slide 26: Earnings and EPS from Continuing Operations Reconciliation

    Earnings and EPS from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 1Q11 - 1Q11 - Earnings EPS Reported $ 25.9 $ 0.50 Restructuring Charges 0.5 0.01 Comparable $ 26.3 $ 0.51 4/26/2011 © 2011 Ryder System, Inc. All rights reserved. 26

  27. Slide 27: NBT and Tax Rate from Continuing Operations Reconciliation

    NBT and Tax Rate from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 1Q11 - 1Q11 - 1Q11 - NBT Tax Tax Rate Reported $ 43.6 $ 17.8 40.7% Restructuring Charges 0.8 0.3 Comparable $ 44.4 $ 18.1 40.7% 4/26/2011 © 2011 Ryder System, Inc. All rights reserved. 27

  28. Slide 28: Adjusted Return on Capital Reconciliation

    Adjusted Return on Capital Reconciliation ($ Millions) 3/31/11 3/31/10 (1) Net Earnings $ 131 $ 68 Restructuring and Other Charges, Net and Other Items 7 22 Income Taxes 69 52 Adjusted Earnings Before Income Taxes 207 142 Adjusted Interest Expense (2) 134 144 Adjusted Income Taxes (3) (132) (117) Ad

  29. Slide 29: Segment Adjusted Return on Capital Reconciliation

    Segment Adjusted Return on Capital Reconciliation ($ Millions) 2010 FMS SCS(6) DCC(6) Net Earnings (1) $ 118 $ 26 $ 19 Restructuring and Other Charges, Net and Other Items - 3 - Income Taxes 54 18 12 Adjusted Earnings Before Income Taxes 172 47 31 (2) Adjusted Interest Expense 134 5 2 (3) Adjusted I

  30. Slide 30: Debt to Equity Reconciliation

    Debt to Equity Reconciliation ($ Millions) % 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% $1,783 118% $2,185 143

  31. Slide 31: Debt to Equity Reconciliation

    Debt to Equity Reconciliation ($ Millions) % to % to % to % to % to 12/31/08 Equity 12/31/09 Equity 12/31/10 Equity 3/31/11 Equity 3/31/10 Equity Balance Sheet Debt $2,863 213% $2,498 175% $2,747 196% $2,809 195% $2,424 172% Receivables Sold - - - - - PV of minimum lease payments and guaranteed resi

  32. Slide 32: Cash Flow Reconciliation

    Cash Flow Reconciliation ($ Millions) 12/31/00 (4) 12/31/01 (4) 12/31/02 (4) 12/31/03 (4) 12/31/04 (4) 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) 2

  33. Slide 33: Cash Flow Reconciliation

    Cash Flow Reconciliation ($ Millions) 12/31/10 3/31/11 3/31/10 Cash Provided by Operating Activities from Continuing Operations $ 1,028 $ 218 $ 271 Proceeds from Sales (Primarily Revenue Earning Equipment) 235 71 49 Collections of Direct Finance Leases 62 15 16 Other, Net 3 - - Total Cash Generated

  34. Slide 34: Ryder

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