Slide 1: First Quarter 2006 Earnings Conference Call
First Quarter 2006 Earnings Conference Call April 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 First Quarter 2006 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 4: 1st Quarter Results Overview
1st Quarter Results Overview Earnings per diluted share were $0.77, up 20% from $0.64 in 1Q05 1Q06 includes $0.02 one-time benefit from insurance company stock receipt in a prior year 1Q05 includes $0.02 one-time recovery of prior years' project costs from a customer Total revenue up 14% and operati
Slide 5: 1st Quarter Results Overview (cont'd)
1st Quarter Results Overview (cont'd) Supply Chain Solutions (SCS) total revenue up 35% (and operating revenue up 14%) vs. prior year, reflecting increased managed subcontracted transportation, higher volumes, and new and expanded business SCS net before tax earnings (NBT) up 64% SCS NBT percent of
Slide 6: Key Financial Statistics First Quarter
Key Financial Statistics First 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 revenu
Slide 7: Business Segment First Quarter
Business Segment First Quarter (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (2) Allocation of Restructuring and Other Recoveries, Net across business segments was as follows: FMS - $0.1 and SCS - $0.1 in 2006; FMS - $0.1 in 2005 ($ Millions)
Slide 8: Capital Expenditures First Quarter
Capital Expenditures First Quarter ($ Millions)
Slide 9: Debt to Equity Ratio
Debt to Equity Ratio Note: Includes impact of accumulated net pension related equity charge of $221 million as of 3/31/06 and 12/31/05, and $189 million as of 3/31/05. (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (2) Represents long term total obligations to equit
Slide 10: Contents
Contents First Quarter 2006 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 11: Asset Management Update
Asset Management Update Note: U.S. only The overall number of vehicles sold in the first quarter was 5,359; up 8% compared with prior year Used tractor retail sales proceeds up 4% per unit vs. prior year period Used truck retail sales proceeds down 4% per unit vs. prior year period Vehicles no longe
Slide 12: Contents
Contents First Quarter 2006 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 13: Earnings Outlook
Earnings Outlook ($ Earnings Per Share) Increasing full year 2006 earnings forecast by $0.07 to a range of $3.82 to $3.97 per share. Current forecast for EPS is as follows:
Slide 14: Q & A
Q & A
Slide 15: Appendix
Appendix Business Segment Detail Central Support Services Balance Sheet Asset Management Financial Indicators Forecast Non-GAAP Financial Measures & Reconciliations
Slide 16: Fleet Management Solutions (FMS) First Quarter
Fleet Management Solutions (FMS) First Quarter (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the FMS business segment and as a measure of sales activity. Fuel services revenue, which is directly impacted by fluctuations in market fuel
Slide 17: Supply Chain Solutions (SCS) First Quarter
Supply Chain Solutions (SCS) First Quarter (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the SCS business segment and as a measure of sales activity. Subcontracted Transportation is deducted from total revenue to arrive at operating re
Slide 18: Dedicated Contract Carriage (DCC) First Quarter
Dedicated Contract Carriage (DCC) First Quarter (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the DCC business segment and as a measure of sales activity. Subcontracted Transportation is deducted from total revenue to arrive at operati
Slide 19: Central Support Services (CSS) First Quarter
Central Support Services (CSS) First Quarter ($ Millions)
Slide 20: Balance Sheet
Balance Sheet Cash and Cash Equivalents Other Current Assets Revenue Earning Equipment, Net Operating Property and Equipment, Net Other Assets Total Assets Short-Term Debt /Current Parti Other Current Liabilities Long-Term Debt Long-Term Debt Other Non-Current Liabi Shareholders’ Equity Total Liabil
Slide 21: 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 1Q01 1131 657 1673 474 1Q02 1790 1350 1903 343 1Q03 1322 948 1374 215 1Q04 1356 708 1479 270 1Q05 883 811 1164 441 1Q06 966 8
Slide 22: Non-Revenue Earning Equipment
Non-Revenue Earning Equipment (a) Units Not Yet Earning Revenue - "NYE" Units No Longer Earning Revenue - "NLE" Total 11,072 Dec 2001 Total 10,361 Mar 2002 Total 8,838 Mar 2003 Total 8,691 June 2002 Total 8,433 Sept 2002 Total 8,131 Dec 2002 Total 7,985 Jun 2003 (a) U.S. only (b) Excludes units for
Slide 23: 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 24: 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 25: 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 Ohio tax ben
Slide 26: 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 27: 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 28: Cityder
Cityder