Slide 1: Second Quarter 2004 Earnings Conference Call
Second Quarter 2004 Earnings Conference Call July 23, 2004
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, we advise that these forward-looking statements be evaluated with consideration given to the many uncertainti
Slide 3: Contents
Contents Second Quarter Results Overview Asset Management Update Earnings Outlook Q & A
Slide 4: 2nd Quarter Results Overview
2nd Quarter Results Overview Earnings per diluted share were $0.97, up from $0.55 in 2Q03 Earnings include a $0.21 gain related to sale of headquarters facility Earnings excluding facility gain were $0.76, up from $0.55 in 2Q03 Earnings include additional net restructuring and other charges of $0.04
Slide 5: 2nd Quarter Results Overview (con't)
2nd Quarter Results Overview (con't) Fleet Management Solutions earnings positively impacted by recent acquisitions, improved rental results, vehicle gains and reduced pension expense Supply Chain Solutions revenue down vs. prior year as anticipated due to non-renewal of certain contracts in prior p
Slide 6: Earnings Per Share Second Quarter
Earnings Per Share Second Quarter
Slide 7: Earnings Per Share Year-To-Date
Earnings Per Share Year-To-Date
Slide 8: Business Segment Second Quarter
Business Segment Second Quarter ($ Millions) (1) 2003 net before tax earnings for FMS and DCC restated for change in cost allocations. Refer to Appendix - FMS / DCC Segment NBT Reconciliation. (2) Allocation of Restructuring and Other Recoveries, Net across business segments was as follows: FMS - $(
Slide 9: Business Segment Year-To-Date
Business Segment Year-To-Date ($ Millions) (1) 2003 net before tax earnings for FMS and DCC restated for change in cost allocations. Refer to Appendix - FMS / DCC Segment NBT Reconciliation. (2) Allocation of Restructuring and Other Recoveries, Net across business segments was as follows: FMS - $(2.
Slide 10: Capital Expenditures
Capital Expenditures ($ Millions) Year-To-Date Full year 2004 forecast for capital expenditures excluding acquisitions anticipates an increase of $489 million, or 67%, to approximately $1.2 billion related to both increased vehicle replacements and fleet growth
Slide 11: Debt to Equity Ratio
Debt to Equity Ratio Strong balance sheet to support profitable growth ($ Millions) Notes: - Includes impact of accumulated net pension related equity charge of $187 million as of 6/30/04 and 12/31/03, and $229 million as of 6/30/03. - In connection with adopting FIN 46 effective July 1, 2003, the C
Slide 12: Free Cash Flow
Free Cash Flow (1) Includes non-cash restructuring and other recoveries, net and cumulative effect of changes in accounting principles (2) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment (3) Non-GAAP financial measure; refer to Appe
Slide 13: Contents
Contents Second Quarter Results Overview Asset Management Update Earnings Outlook Q & A
Slide 14: Asset Management Update
Asset Management Update Note: U.S. only Used tractor retail sales proceeds continue to show signs of improvement over prior year, up 14% vs. prior year period The overall number of vehicles sold was 4,684; up 38% compared with prior year Total number of non-revenue earning vehicles of 7,770 is down
Slide 15: Asset Management Update
Redeployments Extensions Early Terminations Early Replacements 1H99 1625 921 3775 2797 1H00 2330 939 3403 2639 1H01 2303 1498 3454 903 1H02 3320 2980 3271 601 1H03 2857 2439 2617 465 1H04 2936 1542 2592 517 Asset Management Update Note: U.S. only Focused efforts in the area of asset management conti
Slide 16: Contents
Contents Second Quarter Results Overview Asset Management Update Earnings Outlook Q & A
Slide 17: Earnings Outlook
Earnings Outlook Increasing full year 2004 earnings forecast to $3.00 - $3.06 per share*. Current forecast for EPS is as follows: ($ Earnings Per Share) 2004 EPS Forecast 3rd Quarter* 0.75 - 0.78 Full Year* 3.00 - 3.06 4th Quarter* 0.75 - 0.78 * Forecast includes estimated restructuring charges asso
Slide 18: Q & A
Q & A
Slide 19: Appendix
Appendix Business Segment Detail FMS / DCC Segment NBT Reconciliation Asset Management Update Non-Revenue Earning Equipment Non-GAAP Financial Measures & Reconciliations
Slide 20: Fleet Management Solutions (FMS) Second Quarter
Fleet Management Solutions (FMS) ($ Millions) Second Quarter (a) The Company uses dry 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 mark
Slide 21: Fleet Management Solutions (FMS) Year-To-Date
Fleet Management Solutions (FMS) ($ Millions) Year-To-Date (a) The Company uses dry 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
Slide 22: Supply Chain Solutions (SCS) Second Quarter
Supply Chain Solutions (SCS) ($ Millions) 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. FUM expense is deducted from total revenue to arrive at operating reven
Slide 23: Supply Chain Solutions (SCS) Year-To-Date
Supply Chain Solutions (SCS) ($ Millions) 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. FUM expense is deducted from total revenue to arrive at operating revenue
Slide 24: Dedicated Contract Carriage (DCC) Second Quarter
Dedicated Contract Carriage (DCC) ($ Millions) 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. FUM expense is deducted from total revenue to arrive at operating
Slide 25: Dedicated Contract Carriage (DCC) Year-To-Date
Dedicated Contract Carriage (DCC) ($ Millions) 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. FUM expense is deducted from total revenue to arrive at operating re
Slide 26: Central Support Services (CSS) Second Quarter
Central Support Services (CSS) ($ Millions) Second Quarter
Slide 27: Central Support Services (CSS) Year-To-Date
Central Support Services (CSS) ($ Millions) Year-To-Date
Slide 28: FMS / DCC Segment NBT Reconciliation
FMS / DCC Segment NBT Reconciliation ($ Millions) Note: In 2004, the Company changed its methodology of allocating sales support costs between the FMS and DCC segments. Accordingly, 2003 segment NBT measures for these segments have been adjusted to provide the retroactive effect of this change.
Slide 29: Non-Revenue Earning Equipment
Non-Revenue Earning Equipment Not Yet Earning - "NYE" No Longer Earning - "NLE" Total 10,727 Dec 2000 Total 12,040 Mar 2001 Total 10,915 June 2001 Total 10,991 Sept 2001 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
Slide 30: 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 31: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ Millions) Year-To-Date Preliminary (a) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment. (b) The Company uses free cash flow, a non-GAAP financial measure, because management considers it to be an imp
Slide 32: 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 33: Cityder
Cityder