Ryder System, Inc. · NYSE:R

Ryder System — Q3 2013 Earnings Presentation

37 slides from Ryder System's earnings presentation, Oct 22, 2013

  1. Slide 1: Third Quarter 2013 Earnings Conference Call

    Third Quarter 2013 Earnings Conference Call October 22, 2013 1

  2. Slide 2: Safe Harbor and Non-GAAP Financial Measures

    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 financial performance. Accordingl

  3. Slide 3: Contents

    Contents ► Third Quarter 2013 Results Overview ► Asset Management Update ► Earnings Forecast ►Q &A © 2013 Ryder System, Inc. All rights reserved. 3

  4. Slide 4: 3rd Quarter Results Overview

    3rd Quarter Results Overview ► Earnings per diluted share from continuing operations were $1.40 in 3Q13 vs. $1.26 in 3Q12 – 3Q13 included a $0.06 charge from non-operating pension costs – 3Q12 included an $0.11 charge related to non-operating pension costs and tax law changes ► Comparable earnings p

  5. Slide 5: Key Financial Statistics

    Key Financial Statistics ($ Millions, Except Per Share Amounts) Third Quarter 2013 2012 % B/(W) Operating Revenue $ 1,345.0 $ 1,283.2 5% Fuel Services and Subcontracted Transportation Revenue 289.6 290.1 (0)% Total Revenue $ 1,634.6 $ 1,573.3 4% Earnings Per Share from Continuing Operations $ 1.40 $

  6. Slide 6: Key Financial Statistics

    Key Financial Statistics ($ Millions, Except Per Share Amounts) Year-To-Date 2013 2012 % B/(W) Operating Revenue $ 3,925.8 $ 3,778.8 4% Fuel Services and Subcontracted Transportation Revenue 875.8 894.7 (2)% Total Revenue $ 4,801.6 $ 4,673.4 3% Earnings Per Share from Continuing Operations $ 3.39 $

  7. Slide 7: 3rd Quarter Results Overview - FMS

    3rd Quarter Results Overview - FMS ► Fleet Management Solutions (FMS) operating revenue up 3% and total revenue up 2% vs. prior year – Full service lease revenue up 3% – Contract maintenance revenue down 3% – Contract-related maintenance up 12% – Commercial rental revenue up 3% ► FMS earnings increa

  8. Slide 8: 3rd Quarter Results Overview – SCS

    3rd Quarter Results Overview – SCS ► Supply Chain Solutions (SCS) operating revenue up 9% and total revenue up 8% vs. prior year due to new business and higher volumes ─ Dedicated operating revenue increased 10% vs. prior year due to new sales ► SCS earnings were higher reflecting new business and s

  9. Slide 9: Business Segments

    Business Segments ($ Millions) Third Quarter Memo: Total Revenue 2013 2012 % B/(W) 2013 2012 % B/(W) Operating Revenue: Fleet Management Solutions $ 872.2 $ 848.1 3% $ 1,138.2 $ 1,115.4 2% Supply Chain Solutions 528.3 485.1 9% 610.8 563.2 8% Eliminations (55.7) (49.9) (11)% (114.4) (105.2) (9)% Tota

  10. Slide 10: Business Segments

    Business Segments ($ Millions) Year-To-Date Memo: Total Revenue 2013 2012 % B/(W) 2013 2012 % B/(W) Operating Revenue: Fleet Management Solutions $ 2,548.8 $ 2,471.7 3% $ 3,359.2 $ 3,287.6 2% Supply Chain Solutions 1,538.0 1,455.4 6% 1,784.4 1,705.3 5% Eliminations (161.0) (148.3) (8)% (342.1) (319.

  11. Slide 11: Capital Expenditures

    Capital Expenditures ($ Millions) Year-To-Date 2013 $ 2013 2012 O/(U) 2012 Full Service Lease $ 1,221 $ 1,144 $ 77 Commercial Rental 220 526 (306) Operating Property and Equipment 57 47 10 Gross Capital Expenditures 1,497 1,717 (220) Less: Proceeds from Sales (primarily Revenue Earning Equipment) 33

  12. Slide 12: Cash Flow from Continuing Operations

    Cash Flow from Continuing Operations ($ Millions) Year-To-Date 2013 2012 Earnings from Continuing Operations $ 177 $ 146 Depreciation 708 699 Gains on Vehicle Sales, Net (69) (68) Amortization and Other Non-Cash Charges, Net 57 51 Pension Contributions (45) (77) Changes in Working Capital and Deferr

  13. Slide 13: Debt to Equity Ratio

    Debt to Equity Ratio ($ Millions) 275% Total Obligations to Equity Pension Impact (1) 270% 300% 261% 251% 250% 234% 225% 250% 201% 203% 168% 183% 200% 146% 151% 157% 129% 150% 100% 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 12/31/11 12/3

  14. Slide 14: Contents

    Contents ► Third Quarter 2013 Results Overview ► Asset Management Update ► Earnings Forecast ►Q &A © 2013 Ryder System, Inc. All rights reserved. 14

  15. Slide 15: Global Asset Management Update

    (1) Global Asset Management Update ► Units held for sale were 8,200 at quarter end, down from 9,100 units held for sale in the prior year ─ Sequentially from the second quarter, units held for sale decreased by 1,400 units ► The number of used vehicles sold in the third quarter was 5,800, unchanged

  16. Slide 16: Contents

    Contents ► Third Quarter 2013 Results Overview ► Asset Management Update ► Earnings Forecast ►Q &A © 2013 Ryder System, Inc. All rights reserved. 16

  17. Slide 17: EPS Forecast – Continuing Operations

    EPS Forecast – Continuing Operations ($ Earnings Per Share) ► Narrowed full year Comparable EPS forecast to $4.78 - $4.83 ► Current forecast is as follows: Fourth Quarter Full Year 2013 Comparable EPS Forecast(1) $ 1.25 - 1.30 $ 4.78 - 4.83 2012 Comparable EPS (2) $ 1.26 $ 4.41 (1) 2013 Comparable E

  18. Slide 18: Q&A

    Q&A © 2013 Ryder System, Inc. All rights reserved. 18

  19. Slide 19: Appendix

    Appendix Business Segment Detail Central Support Services Balance Sheet Financial Indicators Forecast Asset Management Non-GAAP Financial Measures & Reconciliations © 2013 Ryder System, Inc. All rights reserved. 19

  20. Slide 20: Fleet Management Solutions (FMS)

    Fleet Management Solutions (FMS) ($ Millions) Third Quarter 2013 2012 % B/(W) Full Service Lease $ 548.3 $ 533.4 3% Contract Maintenance 45.5 47.1 (3)% Contractual Revenue 593.9 580.5 2% Contract-related Maintenance 49.9 44.4 12% Commercial Rental 210.7 205.4 3% Other 17.7 17.8 - Operating Revenue 8

  21. Slide 21: Fleet Management Solutions (FMS)

    Fleet Management Solutions (FMS) ($ Millions) Year-To-Date 2013 2012 % B/(W) Full Service Lease $ 1,622.0 $ 1,565.5 4% Contract Maintenance 136.9 140.6 (3)% Contractual Revenue 1,758.9 1,706.1 3% Contract-related Maintenance 155.3 137.4 13% Commercial Rental 580.3 575.4 1% Other 54.2 52.9 3% Operati

  22. Slide 22: Supply Chain Solutions (SCS)

    Supply Chain Solutions (SCS) ($ Millions) Third Quarter 2013 2012 % B/(W) Automotive $ 140.1 $ 140.1 - High-Tech 85.5 77.5 10% Retail & CPG 191.1 178.2 7% Industrial & Other 111.6 89.3 25% Operating Revenue 528.3 485.1 9% Subcontracted Transportation 82.4 78.1 6% Total Revenue $ 610.8 $ 563.2 8% Seg

  23. Slide 23: Supply Chain Solutions (SCS)

    Supply Chain Solutions (SCS) ($ Millions) Year-To-Date 2013 2012 % B/(W) Automotive $ 433.6 $ 421.8 3% High-Tech 245.3 235.8 4% Retail & CPG 547.2 534.5 2% Industrial & Other 311.9 263.3 18% Operating Revenue 1,538.0 1,455.4 6% Subcontracted Transportation 246.4 249.9 (1)% Total Revenue $ 1,784.4 $

  24. Slide 24: Central Support Services (CSS)

    Central Support Services (CSS) ($ Millions) Third Quarter 2013 2012 % B/(W) Allocated CSS Costs $ 41.1 $ 37.3 (10)% Unallocated CSS Costs 10.1 11.1 9% Total CSS Costs $ 51.2 $ 48.4 (6)% © 2013 Ryder System, Inc. All rights reserved. 24

  25. Slide 25: Central Support Services (CSS)

    Central Support Services (CSS) ($ Millions) Year-To-Date 2013 2012 % B/(W) Allocated CSS Costs $ 122.6 $ 113.5 (8)% Unallocated CSS Costs 32.0 31.8 (1)% Total CSS Costs $ 154.6 $ 145.3 (6)% © 2013 Ryder System, Inc. All rights reserved. 25

  26. Slide 26: Balance Sheet

    Balance Sheet ($ Millions) September 30, December 31, 2013 2012 Cash and Cash Equivalents $ 75 $ 66 Other Current Assets 1,025 974 Revenue Earning Equipment, Net 6,173 5,755 Operating Property and Equipment, Net 626 625 Other Assets 909 899 Total Assets $ 8,808 $ 8,319 Short-Term Debt / Current Port

  27. Slide 27: Financial Indicators Forecast

    Financial Indicators Forecast (1) Gross Capital Expenditures (2) ($ Millions) $2,161 $2,100 Full Service Lease $1,757 $1,760 Commercial Rental PP&E/Other $1,399 $1,289 $1,265 $1,165 $1,182 $1,088 $657 $725 $600 $611 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Forecast Free

  28. Slide 28: Asset Management Update

    Asset Management Update (a) Number of YTD07 YTD08 YTD09 YTD10 YTD11 YTD12 YTD13 Units 8,000 Redeployments – Vehicles 7,000 6,752 coming off-lease with useful life remaining are redeployed in the Ryder fleet (SCS or with 6,000 another Lease customer). 5,557 5,255 5,119 Extensions – Ryder re-prices 5,

  29. Slide 29: 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. Non-GAAP financial measures should be considered in addition t

  30. Slide 30: Earnings and EPS from Continuing Operations Reconciliation

    Earnings and EPS from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 3Q13 - 3Q13 - 3Q12 - 3Q12 - Earnings EPS Earnings EPS Reported $ 73.9 $ 1.40 $ 64.3 $ 1.26 Non-Operating Pension Costs 3.0 0.06 4.8 0.09 Pension settlement charge 0.8 0.01 - - Superstorm Sandy vehicle-rel

  31. Slide 31: EBT and Tax Rate from Continuing Operations Reconciliation

    EBT and Tax Rate from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 3Q13 - 3Q13 - 3Q13 - YTD13 - YTD13 - YTD13 - EBT Tax Tax Rate EBT Tax Tax Rate Reported $ 111.4 $ 37.5 33.7% $ 271.3 $ 94.0 34.7% Non-operating Pension Costs 5.1 2.1 15.3 6.3 Pension settlem ent charge 1.

  32. Slide 32: Adjusted Return on Capital Reconciliation

    Adjusted Return on Capital Reconciliation ($ Millions) 9/30/13 9/30/12 Net Earnings (1) $ 227 $ 204 Restructuring and Other Charges, Net and Other Items 7 12 Income Taxes 121 90 Adjusted Earnings Before Income Taxes 355 306 (2) Adjusted Interest Expense 141 141 (3) Adjusted Income Taxes (177) (162)

  33. Slide 33: 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

  34. Slide 34: Debt to Equity Reconciliation

    Debt to Equity Reconciliation ($ Millions) % 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 9/30/2013 Equity 9/30/2012 Equity Balance Sheet Debt $2,863 213% $2,498 175% $2,747 196% $3,382 257% $3,821 260% $4,037 244% $3,888

  35. Slide 35: Cash Flow Reconciliation

    Cash Flow Reconciliation ($ 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) 2

  36. Slide 36: Cash Flow Reconciliation

    Cash Flow Reconciliation ($ Millions) 12/31/10 12/31/11 12/31/12 9/30/13 9/30/12 Cash Provided by Operating Activities from Continuing Operations $ 1,028 $ 1,042 $ 1,134 $ 890 $ 768 Proceeds from Sales (Primarily Revenue Earning Equipment) 235 300 413 337 310 Proceeds from Sale and Leaseback of Asse

  37. Slide 37: © 2013 Ryder System, Inc. All rights reserved.

    © 2013 Ryder System, Inc. All rights reserved.

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