Slide 1: First Quarter 2024 Earnings Conference Call
First Quarter 2024 Earnings Conference Call April 23, 2024
Slide 2: Safe Harbor and Non-GAAP Financial Measures
Safe Harbor and Non-GAAP Financial Measures Note Regarding Forward-Looking Statements: Certain statements and information included in this news release are “forward-looking statements” under the Federal Private Securities Litigation Reform Act of 1995, including: our forecast; our outlook; our expec
Slide 3: Contents
Contents 1Q24 Earnings Release Conference Call Note Regarding Forward-Looking Statements Slide 2 2024 Highlights & Strategic Update Slides 4 - 6 1Q24 Results Slides 7 - 11 Capex, Cash Flow & Capital Allocation Slides 12 - 13 Outlook Slides 14 - 16 Investor Day Slide 17 Appendix & Non-GAAP Financial
Slide 4: Key Updates
Key Updates • Balanced growth strategy continues to drive outperformance relative to prior cycles • Integration of Cardinal and IFS acquisitions on track Strategy Update • Long-term growth opportunities supported by secular trends, large addressable markets and value proposition • Adjusted ROE (ROE)
Slide 5: Higher Earnings and Return Profile Reflects Transformative Changes
Higher Earnings and Return Profile Reflects Transformative Changes Expect to continue to outperform prior cycles Well positioned for long-term growth and to benefit from cycle upturn Note: See Appendix for reconciliations of non-GAAP financial measures, including Comparable EPS and ROE. SUPPLY CHAIN
Slide 6: Cardinal Acquisition Integration Update
Cardinal Acquisition Integration Update Expected synergies: $40-60M by Year 3 Maintenance Operating Leases Operating Efficiency Transition all vehicles to FMS Replace 3rd party financing with Drive operating leverage platform Ryder ownership Beginning 2H24; Complete in 1H24 As leases mature accelera
Slide 7: Results Overview
Results Overview OPERATING REVENUE COMPARABLE EPS First Quarter First Quarter $2.3B +6% $2.5B $2.81 -24% Primarily reflecting weaker Primarily reflecting recent $2.14 acquisitions and contractual market conditions in used growth, partially offset by vehicle sales (UVS) and rental, lower rental parti
Slide 8: 1st Quarter Results Overview – FMS
1st Quarter Results Overview – FMS OPERATING REVENUE $1.3B $1.3B Lower rental demand, largely offset by higher ChoiceLease revenue 1Q23 1Q24 EARNINGS BEFORE TAX (EBT) Earnings decline primarily reflects: • lower gains in UVS due to lower pricing partially offset by $182M higher volumes $100M • decre
Slide 9: 1st Quarter Used Vehicle Sales Update – FMS
1st Quarter Used Vehicle Sales Update – FMS % CHANGE IN PROCEEDS Pricing decline was slightly better than our expectations (4)% (3)% (34)% (30)% vs. 1Q23 vs. 4Q23 USED VEHICLES SOLD USED VEHICLE INVENTORY Sales volumes and inventory reflect higher lease replacement and 7,200 6,500 8,000 8,900 rental
Slide 10: 1st Quarter Results Overview – SCS
1st Quarter Results Overview – SCS OPERATING REVENUE $879M $972M 11% increase primarily driven by recent acquisitions 1Q23 1Q24 EARNINGS BEFORE TAX (EBT) 267% increase primarily reflects: $64M • year-over-year comparison benefited from a prior-year $17M $30 million asset impairment charge • stronger
Slide 11: 1st Quarter Results Overview – DTS
1st Quarter Results Overview – DTS OPERATING REVENUE $427M 33% increase due to acquisition of Cardinal Logistics $322M 1Q23 1Q24 EARNINGS BEFORE TAX (EBT) Earnings decline reflects Cardinal Logistics' acquisition $29M integration and other related costs, as well as higher $18M insurance costs 1Q23 1
Slide 12: Capital Expenditures
Capital Expenditures LEASE RENTAL First Quarter First Quarter $579M $582M $177M $79M 1Q23 1Q24 1Q23 1Q24 Reflects planned lease replacement activity and Lower planned rental investments in the quarter timing of OEM deliveries Capital FY23 FY24F Expenditures Lease Vehicles $ 2.6 $ 2.5 (billions) Rent
Slide 13: Cash Flow and Capital Allocation Priorities
Cash Flow and Capital Allocation Priorities OPERATING CASH FLOW AND FREE CASH FLOW HISTORY FREE CASH FLOW SUMMARY (billions) (billions) Operating Cash Flow Free Cash Flow 2023 2024F Cash Flow from Operations $ 2.4 $ 2.4 $2.1B $2.2B $2.2B $2.3B $2.4B $2.4B Proceeds from Sales (Primarily Revenue Earni
Slide 14: Outlook
Outlook (Earnings Per Share from FULL YEAR EPS SECOND QUARTER EPS Continuing Operations) 2023 2024 Forecast 2023 2024 Forecast GAAP $8.73 $10.95 - $11.70 $(0.39) $2.58 - $2.78 Comparable $12.95 $11.75 - $12.50 $3.61 $2.75 - $2.95 • Raising full-year 2024 comparable EPS forecast range to $11.75 - $12
Slide 15: Favorably Positioned for Cycle Upturn
Favorably Positioned for Cycle Upturn Opportunities to benefit from cycle upturn in all segments SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS © 2024 Ryder System, Inc. 15 All Rights Reserved
Slide 16: Delivering Shareholder Value
Delivering Shareholder Value Transformative changes to our business model and continued execution of our balanced growth strategy have enabled us to achieve long-term targets, increase business model resiliency, and outperform prior cycles Secular trends, operational expertise, and momentum from mul
Slide 17: Ryder Investor Day June 13, 2024
Ryder Investor Day June 13, 2024 The Westin New York at Times Square Leadership presentations followed by interactive lunch and Solutions Showcase featuring: expanded SCS capabilities | freight optimization by Baton warehouse automation |near-shoring capabilities RyderShare | RyderGyde | Ryder Elect
Slide 18: Q&A
Q&A SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS 18 © 2024 Ryder System, Inc. All Rights Reserved
Slide 19: Appendix
Appendix Financial Targets Residuals Chart Comparable Segment EBITDA Asset Management Non-GAAP Financial Measures & Reconciliations SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS © 2024 Ryder System, Inc. 19 All Rights Reserved
Slide 20: Long Term Financial Model
Long Term Financial Model ROE TARGET 2024 FORECAST Long-term average over the cycle High Teens at targetwithin stated range of mid- teens (trough) to low 20's Component drivers to achieve ROE target include: (upcycle) Operating Operating Revenue Revenue Growth Growth Total Ryder High Single Digit at
Slide 21: Historical Sales Price as % of Original Cost & Current Residual Value Estimates
Historical Sales Price as % of Original Cost & Current Residual Value Estimates Truck Residual Index1 Tractor Residual Index1 Range Residual Estimate for Accounting Residual Estimate for Accounting RESIDUAL VALUE Accounting Residuals: Previously lowered by ~30% to address used vehicle volatility ris
Slide 22: Comparable Segment EBITDA
Comparable Segment EBITDA First Quarter ($ Millions) 2024 YTD FMS SCS DTS Earnings before income tax $ 100 $ 64 $ 18 Interest expense / (income) 86 4 2 (1) Depreciation 397 26 1 (1) Used vehicle sales, net (20) — — Comparable Segment EBITDA (2) $ 563 $ 94 $ 21 2023 YTD FMS SCS DTS Earnings before in
Slide 23: © 2024 Ryder System, Inc. All Rights Reserved
SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS © 2024 Ryder System, Inc. 23 All Rights Reserved
Slide 24: 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 to,
Slide 25: Fleet Management Solutions (FMS)
Fleet Management Solutions (FMS) ($ Millions) First Quarter Revenue 2024 2023 % B/(W) ChoiceLease $ 842 $ 776 9% Commercial rental 231 304 (24)% SelectCare and other 178 182 (2)% FMS operating revenue (1) 1,251 1,262 (1)% Fuel services revenue (2) 204 241 (15)% FMS total revenue $ 1,455 $ 1,503 (3)%
Slide 26: Supply Chain Solutions (SCS)
Supply Chain Solutions (SCS) First Quarter ($ Millions) Revenue 2024 2023 % B/(W) Omnichannel retail $ 291 $ 311 (6)% Automotive 269 254 6% Consumer packaged goods 281 218 29% Industrial and other 131 96 36% SCS operating revenue (1) 972 879 11% Subcontracted transportation and fuel 330 322 3% SCS t
Slide 27: Dedicated Transportation Solutions (DTS)
Dedicated Transportation Solutions (DTS) First Quarter ($ Millions) Revenue 2024 2023 % B/(W) (1) DTS Operating Revenue $ 427 $ 322 33% Subcontracted transportation and fuel 136 132 3% DTS Total Revenue $ 563 $ 454 24% Earnings Before Tax DTS Earnings Before Tax (EBT) $ 18 $ 29 (38)% DTS EBT as a %
Slide 28: Total Revenue to Operating Revenue Reconciliation
Total Revenue to Operating Revenue Reconciliation ($ Millions) First Quarter 2024 2023 Total Revenue $ 3,098 $ 2,952 Subcontracted Transportation and Fuel (603) (606) (1) Operating Revenue $ 2,495 $ 2,346 Year-to-Date Note: Amounts may not be additive due to rounding. (1) Non-GAAP financial measure.
Slide 29: Earnings and EPS from Continuing Operations Reconciliation
Earnings and EPS from Continuing Operations Reconciliation ($ Millions, Except Per Share Amounts) 1Q24 1Q24 1Q23 1Q23 Earnings EPS Earnings EPS Continuing operations (GAAP) $ 85 $ 1.89 $ 140 $ 2.95 Non-operating pension costs, net 7 0.17 8 0.17 Acquisition costs 4 0.09 — — FMS U.K. exit (1) — — (14)
Slide 30: Comparable EPS Reconciliation
Comparable EPS Reconciliation Second Quarter 2024 Full Year 2024 Forecast Forecast EPS from continuing operations forecast (GAAP) $2.58 - $2.78 $10.95 - $11.70 Non-operating pension costs, net 0.19 0.74 Restructuring and other, net (0.02) 0.05 Comparable EPS from continuing operations forecast (non-
Slide 31: Adjusted Return on Equity Reconciliation
Adjusted Return on Equity Reconciliation (1) Twelve months ended March 31, ($ Millions) 2023 2024 2024 Forecast Net earnings $ 832 $ 351 $ 495 Other items impacting comparability, net (121) 193 5 Tax impact (1) 59 (11) (5) Adjusted net earnings [A] $ 770 $ 533 $ 495 Average shareholders' equity $ 2,
Slide 32: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ Millions) Three months ended March 31, 2023 2024 Cash Provided by Operating Activities from Continuing Operations $ 478 $ 526 Proceeds from Sales (Primarily Revenue Earning Equipment)(1) 264 173 Total Cash Generated (2) 742 699 Purchases of Property and Revenue Earni
Slide 33: Cash Flow Reconciliation
Cash Flow Reconciliation ($ Millions) 2019 2020 2021 2022 2023 2024 Forecast Net Cash Provided by Operating Activities from Continuing Operations $ 2,141 $ 2,181 $ 2,175 $ 2,310 $ 2,353 $ 2,400 Proceeds from Sales (Primarily Revenue Earning Equipment) (1) 518 552 822 1,235 827 600 Other, net (1) — —