Slide 1: Third Quarter 2013 Earnings Conference Call
Proprietary and Confidential | October 22, 2013 Third Quarter 2013 Earnings Conference Call 1 Exhibit 99.2
Slide 2: Safe Harbor and Non-GAAP Financial Measures
Proprietary and Confidential | 2 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
Slide 3: Contents
Proprietary and Confidential | 3 Contents ► Third Quarter 2013 Results Overview ►Asset Management Update ► Earnings Forecast ► Q & A
Slide 4: 3rd Quarter Results Overview
Proprietary and Confidential | 4 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 $0.11 charge related to non-operating pension costs and tax la
Slide 5: Key Financial Statistics Third Quarter
Proprietary and Confidential | 5 Key Financial Statistics Third Quarter ($ Millions, Except Per Share Amounts) 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 C
Slide 6: Key Financial Statistics Year-To-Date
Proprietary and Confidential | 6 Key Financial Statistics Year-To-Date ($ Millions, Except Per Share Amounts) 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 Co
Slide 7: 3rd Quarter Results Overview - FMS
Proprietary and Confidential | 7 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 re
Slide 8: 3rd Quarter Results Overview – SCS
Proprietary and Confidential | 8 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 hig
Slide 9: Business Segments Third Quarter
Proprietary and Confidential | 9 Business Segments 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)% Total 1,344.9$ 1,283.2
Slide 10: Business Segments Year-To-Date
Proprietary and Confidential | 10 Business Segments 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) (319.5) (7)% Total 3,
Slide 11: Capital Expenditures
Proprietary and Confidential | 11 Capital Expenditures 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 Equipmen
Slide 12: Cash Flow from Continuing Operations
Proprietary and Confidential | 12 Cash Flow from Continuing Operations 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
Slide 13: Debt to Equity Ratio
Proprietary and Confidential | 275% 234% 201% 146% 129% 151% 168% 157% 225% 183% 203% 261% 270% 251% 250% 0% 50% 100% 150% 200% 250% 300% 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 12/31/12 09/30/13 Long Term Target Midpoint Total Obli
Slide 14: Contents
Proprietary and Confidential | 14 Contents ► Third Quarter 2013 Results Overview ►Asset Management Update ► Earnings Forecast ► Q & A
Slide 15: Global Asset Management Update
Proprietary and Confidential | ► 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 from
Slide 16: Contents
Proprietary and Confidential | 16 Contents ► Third Quarter 2013 Results Overview ►Asset Management Update ► Earnings Forecast ► Q & A
Slide 17: EPS Forecast – Continuing Operations
Proprietary and Confidential | 17 EPS Forecast – Continuing Operations 2013 Comparable EPS Forecast(1) $ 1.25 - 1.30 $ 4.78 - 4.83 2012 Comparable EPS(2) $ 1.26 $ 4.41 Fourth Quarter Full Year ($ Earnings Per Share) (1) 2013 Comparable EPS Forecast, a non-GAAP financial measure, excludes from EPS fo
Slide 18: Q&A
Proprietary and Confidential | Q&A 18
Slide 19: Appendix
Proprietary and Confidential | 19 Appendix Business Segment Detail Central Support Services Balance Sheet Financial Indicators Forecast Asset Management Non-GAAP Financial Measures & Reconciliations
Slide 20: Fleet Management Solutions (FMS) Third Quarter
Proprietary and Confidential | 20 Fleet Management Solutions (FMS) 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 Reve
Slide 21: Fleet Management Solutions (FMS) Year-To-Date
Proprietary and Confidential | 21 Fleet Management Solutions (FMS) 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% O
Slide 22: Supply Chain Solutions (SCS) Third Quarter
Proprietary and Confidential | 22 Supply Chain Solutions (SCS) 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%
Slide 23: Supply Chain Solutions (SCS) Year-To-Date
Proprietary and Confidential | 23 Supply Chain Solutions (SCS) 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.
Slide 24: Central Support Services (CSS) Third Quarter
Proprietary and Confidential | 24 Central Support Services (CSS) 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)% Third Quarter ($ Millions)
Slide 25: Central Support Services (CSS) Year-To-Date
Proprietary and Confidential | 25 Central Support Services (CSS) 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)% Year-To-Date ($ Millions)
Slide 26: Balance Sheet
Proprietary and Confidential | 26 Balance Sheet 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 De
Slide 27: Financial Indicators Forecast
Proprietary and Confidential | 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Forecast Midpoint Long Term Target Midpoint 27 Financial Indicators Forecast (1) (1) Total Obligations to Equity includes acquisitions. Free Cash Flow and Gross Capital Expenditures exclude acquisiti
Slide 28: Asset Management Update
Proprietary and Confidential | 28 Asset Management Update (a) (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 (b) (c) Number of Units 3,138 2,910 3,756 3,023 3,959 3,670 3,138 5,255 4,899 4,03
Slide 29: Non-GAAP Financial Measures
Proprietary and Confidential | 29 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
Slide 30: Earnings and EPS from Continuing Operations Reconciliation
Proprietary and Confidential | 30 Earnings and EPS from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) (1) The company uses Comparable Earnings and Comparable Earnings per Share (EPS) from Continuing Operations, both non-GAAP financial measures, which provide useful inform
Slide 31: EBT and Tax Rate from Continuing Operations Reconciliation
Proprietary and Confidential | 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 settlement charge 1.3 0.5 1.3 0.5 Superstorm Sandy vehicle-related gain (0.6) (0.2) (0.6)
Slide 32: Adjusted Return on Capital Reconciliation
Proprietary and Confidential | 32 Adjusted Return on Capital Reconciliation ($ Millions) (1) Earnings calculated based on a 12-month rolling period. (2) Interest expense includes interest on and off-balance sheet vehicle obligations. (3) Income taxes were calculated by excluding taxes related to com
Slide 33: Debt to Equity Reconciliation
Proprietary and Confidential | 33 Debt to Equity Reconciliation % 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% $
Slide 34: Debt to Equity Reconciliation
Proprietary and Confidential | 34 Debt to Equity Reconciliation ($ Millions) Note: Amounts may not recalculate due to rounding. % 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
Slide 35: Cash Flow Reconciliation
Proprietary and Confidential | ($ 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) 235 1
Slide 36: Cash Flow Reconciliation
Proprietary and Confidential | 36 Cash Flow Reconciliation 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 L
Slide 37: Proprietary and Confidential |
Proprietary and Confidential |