Ryder System, Inc. · NYSE:R
Ryder System — Q1 2007 Earnings Presentation
31 slides from Ryder System's earnings presentation, Apr 25, 2007
Slide 1: First Quarter 2007 Earnings Conference Call
First Quarter 2007 April 25, 2007 Earnings Conference Call
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 2007 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 4: 1st Quarter Results Overview
1st Quarter Results Overview Earnings per diluted share were $0.84, up 9% from $0.77 in 1Q06 1Q06 included $0.02 one-time benefit from insurance company stock receipt in a prior year Total revenue up 7% (and operating revenue up 6%) reflecting growth in all business segments Fleet Management Solutio
Slide 5: 1st Quarter Results Overview (cont'd)
1st Quarter Results Overview (cont'd) Supply Chain Solutions (SCS) total revenue up 21% (and operating revenue up 18%) vs. prior year, reflecting new / expanded business and higher volumes SCS net before tax earnings (NBT) up 7% SCS NBT percent of operating revenue down 30 basis points to 3.6% SCS e
Slide 6: Key Financial Statistics First Quarter
Key Financial Statistics First Quarter (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (2) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the business and as a measure of sales activity. Fuel services revenu
Slide 7: Business Segment First Quarter
Business Segment First Quarter (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (2) Our primary measure of segment financial performance excludes restructuring and other (charges)/recoveries, net; however, the applicable portion of the restructuring and other (charges
Slide 8: Capital Expenditures First Quarter
Capital Expenditures First Quarter ($ Millions)
Slide 9: Cash Flow
Cash Flow (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures (2) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment First Quarter ($ Millions)
Slide 10: Debt to Equity Ratio
Debt to Equity Ratio Note: Includes impact of accumulated net pension related equity charge of $198 million as of 3/31/07, $201 million as of 12/31/06, and $221 million as of 3/31/06. (1) Non-GAAP financial measure. Total obligations include the present value of minimum lease payments and guaranteed
Slide 11: Contents
Contents First Quarter 2007 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 12: Asset Management Update
Asset Management Update Note: U.S. only The overall number of used vehicles sold in the first quarter was 6,008, up 12% compared with prior year Retail sales proceeds per unit for tractors and trucks were flat in the first quarter compared with prior year Vehicles no longer earning revenue are 10,50
Slide 13: Contents
Contents First Quarter 2007 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 14: EPS Forecast
EPS Forecast (1) Non-GAAP financial measure. Excludes tax changes in 2006. (2) Non-GAAP financial measure. Excludes tax changes and pension charge in 2006. ($ Earnings Per Share) Reaffirming full year 2007 earnings forecast of $4.30 to $4.40 per share Current forecast for EPS is as follows: * Includ
Slide 15: EPS Forecast
EPS Forecast ($ Earnings Per Share) Second quarter 2006 reported EPS was as follows: Second quarter reported EPS in 2006 of $1.02 was favorably impacted by a net $0.02 due to the following items: a contract termination benefit of $0.03 earned in 2Q06, partially offset by a litigation settlement cost
Slide 16: Q & A
Q & A
Slide 17: Appendix
Appendix Business Segment Detail Central Support Services Balance Sheet Asset Management Financial Indicators Forecast Non-GAAP Financial Measures & Reconciliations
Slide 18: Fleet Management Solutions (FMS) First Quarter
Fleet Management Solutions (FMS) First Quarter (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the FMS business segment and as a measure of sales activity. Fuel services revenue, which is directly impacted by fluctuations in market fuel
Slide 19: Supply Chain Solutions (SCS) First Quarter
Supply Chain Solutions (SCS) First Quarter (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the SCS business segment and as a measure of sales activity. Subcontracted transportation is deducted from total revenue to arrive at operating re
Slide 20: Dedicated Contract Carriage (DCC) First Quarter
Dedicated Contract Carriage (DCC) First Quarter ($ Millions) (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 arri
Slide 21: Central Support Services (CSS) First Quarter
Central Support Services (CSS) First Quarter ($ Millions)
Slide 22: Balance Sheet
Balance Sheet (8 Millions) March 31, December 31, — 20 ee Cash and Cash Equivalents $ 96 $ 1286 Other Current Assets 1,199.4 1,193.2 Revenue Earning Equipment, Net 4698.2 4,509.3 Operating Property and Equipment, Net 504.0 499.0 Other Assets 563.7 558.8 Total Assets $ 69989 $ _6,8289 Short-Term Debt
Slide 23: Asset Management Update
Redeployments Extensions Early Terminations Early Replacements 1Q02 1790 1350 1903 343 1Q03 1322 948 1374 215 1Q04 1356 708 1479 270 1Q05 883 811 1164 441 1Q06 966 858 1035 339 1Q07 779 598 820 845 Asset Management Update (a) (a) U.S. only (b) Excludes early terminations where customer purchases veh
Slide 24: 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 $176 million payment to the IRS related to full resolution of 1
Slide 25: Assets Under Management
Assets Under Management (a) ($ Millions) (a) Assets under management represent the original cost of all vehicles owned and held under lease by Ryder. (b) Excludes impact of foreign exchange movements in 2007.
Slide 26: 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 27: 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 benefits fro
Slide 28: Cash Flow Reconciliation
Cash Flow Reconciliation (1) The Company uses total cash generated, a non-GAAP financial measure, because management considers it to be an important measure of comparative operating performance. Management believes total cash generated provides investors with an important measure of total cash inflo
Slide 29: Cash Flow Reconciliation
Cash Flow Reconciliation (1) The Company uses total cash generated, a non-GAAP financial measure, because management considers it to be an important measure of comparative operating performance. Management believes total cash generated provides investors with an important measure of total cash inflo
Slide 30: Debt to Equity Reconciliation
Debt to Equity Reconciliation ($ Millions) 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 fina
Slide 31: Slide 31