Slide 1: Second Quarter 2005 Earnings Conference Call
Second Quarter 2005 Earnings Conference Call July 28, 2005
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 Second Quarter Results Overview Asset Management Update Earnings Outlook Q & A
Slide 4: 2nd Quarter Results Overview
2nd Quarter Results Overview Comparable earnings per diluted share were $0.86, up 13% from $0.76 in 2Q04 Reported earnings per diluted share were $0.98 vs. $0.97 in 2Q04 2Q05 included $0.12 state income tax benefit 2Q04 included $0.21 gain on sale of a portion of the headquarters complex Fleet Manag
Slide 5: 2nd Quarter Results Overview (cont'd)
2nd Quarter Results Overview (cont'd) Fleet Management Solutions earnings positively impacted by improved rental results and strong used vehicle sales performance Supply Chain Solutions total revenue up 15% (and operating revenue up 9%) vs. prior year reflecting impact of new sales activity and cust
Slide 6: Earnings Per Share Second Quarter
Earnings Per Share Second Quarter (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures (2) Calculated based on a 12-month rolling period
Slide 7: Earnings Per Share Year-to-Date
Earnings Per Share Year-to-Date (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures (2) Calculated based on a 12-month rolling period
Slide 8: Business Segment Second Quarter
Business Segment Second Quarter ($ Millions) (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures (2) Allocation of Restructuring and Other Charges, Net across business segments was as follows: FMS - $0.1 in 2005 and FMS - $(2.8), SCS - $(1.0), DCC - $(0.3) and CSS - $22.2
Slide 9: Business Segment Year-to-Date
Business Segment ($ Millions) (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures (2) Allocation of Restructuring and Other Charges, Net across business segments was as follows: FMS - $0.2 in 2005 and FMS - $(2.7), SCS - $(0.9), DCC - $(0.3) and CSS - $23.1 in 2004 Year-t
Slide 10: Capital Expenditures Year-to-Date
Capital Expenditures ($ Millions) Year-to-Date
Slide 11: Debt to Equity Ratio
Debt to Equity Ratio Strong balance sheet to support profitable growth ($ Millions) Note: Includes impact of accumulated net pension related equity charge of $189 million as of 6/30/05 and 12/31/04, and $187 million as of 6/30/04. (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financia
Slide 12: Contents
Contents Second Quarter Results Overview Asset Management Update Earnings Outlook Q & A
Slide 13: Asset Management Update
Asset Management Update Note: U.S. only The overall number of vehicles sold in second quarter was 5,715; up 22% compared with prior year Used tractor retail sales proceeds up 13% per unit vs. prior year period Used truck retail sales proceeds up 7% per unit vs. prior year period Vehicles not yet ear
Slide 14: Contents
Contents Second Quarter Results Overview Asset Management Update Earnings Outlook Q & A
Slide 15: Earnings Outlook
Earnings Outlook Reaffirming our full year 2005 earnings forecast, which including the $0.12 state tax benefit is now $3.42- $3.52 per share. Current forecast for EPS is as follows: (Earnings Per Share) Note: EPS projections assume no impact from expensing of stock options.
Slide 16: Q & A
Q & A
Slide 17: Appendix
Appendix Business Segment Detail Central Support Services Balance Sheet Financial Indicators Forecast FMS Revenue History Asset Management Non-GAAP Financial Measures & Reconciliations
Slide 18: Fleet Management Solutions (FMS) Second Quarter
Fleet Management Solutions (FMS) ($ Millions) Second 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 i
Slide 19: Fleet Management Solutions (FMS) Year-to-Date
Fleet Management Solutions (FMS) ($ Millions) Year-to-Date (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
Slide 20: 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 21: Supply Chain Solutions (SCS) Year-to-Date
Supply Chain Solutions (SCS) ($ 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. FUM expense is deducted from total revenue to arrive at operating revenue as FUM expen
Slide 22: 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 23: Dedicated Contract Carriage (DCC) Year-to-Date
Dedicated Contract Carriage (DCC) ($ Millions) (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 revenue as FUM
Slide 24: Central Support Services (CSS) Second Quarter
Central Support Services (CSS) ($ Millions) Second Quarter
Slide 25: Central Support Services (CSS) Year-to-Date
Central Support Services (CSS) ($ Millions) Year-to-Date
Slide 26: Balance Sheet
Balance Sheet (8 Millions) dune 90, December 31, ju 2006 Si ZOO Ae Cash and Cash Equivalents $ 873 $ 1010 Other Current Assets 1,113.0 1,126.7 Revenue Earning Equipment, Net 3569.9 3,991.7 Operating Property and Equipment, Net 484.5 479.6 Other Assets 589.2 598.9 Total Assets $5499 _$5,697.9 Current
Slide 27: Financial Indicators Forecast
Financial Indicators Forecast (1) (1) Free Cash Flow and Debt to Equity include acquisitions. Capital Expenditures exclude acquisitions. (2) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Actual 2000 Actual 2001 Actual 2002 Actual 2003 Actual 2004 Forecast 2005 $1,289 $
Slide 28: FMS Revenue History
FMS Revenue History ($ Millions) Note: FMS revenue presentation revised to: (1) report both Contract Maintenance and Non-contractual Maintenance individually, and (2) to report trailer pool revenue previously included in the other product line in Full Service Lease and Commercial Rental.
Slide 29: Asset Management Update
Asset Management Update Note: U.S. only Early terminations down 14% reflecting improved customer retention levels
Slide 30: 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 31: 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 32: Net Earnings and EPS Reconciliation
Net Earnings and EPS Reconciliation ($ Millions or $ Earnings Per Share) * Earnings per share amounts are calculated independently for each component and may not be additive due to rounding
Slide 33: Tax Rate Reconciliation
Tax Rate Reconciliation 2Q05 - YTDO5 - Tax Rate Tax Rate Tax Rate 30.1% 33.6% Effect of Net Ohio Tax Change on Tax Rate 8.4% 48% Tax Rate Excluding Net Tax Benefit 38.5% 38.4% 34
Slide 34: Return on Capital Reconciliation
Return on Capital Reconciliation ($ Millions) (1) Adjusted earnings calculated based on a 12-month rolling period. (2) Average shareholders' equity and average debt are calculated quarterly using a weighted average. (3) Shareholders' equity reflects impact of accumulated net pension related equity c
Slide 35: 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 36: 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 37: Cityder
Cityder