Slide 1: Second Quarter 2009 Earnings Conference Call
Second Quarter 2009 Earnings Conference Call July 23, 2009
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 2009 Results Overview Asset Management Update Outlook Q & A
Slide 4: 2nd Quarter Results Overview
2nd Quarter Results Overview Earnings per diluted share were $0.41 vs. $1.09 in 2Q08 2Q09 included a $0.02 restructuring charge related to SCS exit activities 2Q08 included a $0.12 charge for Brazilian adjustments related to prior years Comparable earnings per share were $0.43 vs. $1.21 in 2Q08 Tota
Slide 5: 2nd Quarter Results Overview: Fleet Management Solutions
2nd Quarter Results Overview Fleet Management Solutions (FMS) total revenue down 26% (and operating revenue down 8%) vs. prior year Contractual revenue down 2%; up 1% excluding foreign exchange Full service lease revenue including acquisitions down 2%; up 1% excluding foreign exchange Contract maint
Slide 6: 2nd Quarter Results Overview: Supply Chain Solutions
2nd Quarter Results Overview Supply Chain Solutions (SCS) total revenue down 30% (and operating revenue down 28%) vs. prior year due largely to lower automotive and other freight volumes, unfavorable exchange impact, and lower fuel volumes and prices SCS net before tax earnings (NBT) of $2.8 million
Slide 7: Key Financial Statistics Second Quarter
Key Financial Statistics Second Quarter Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the business and as a measure of sales activity. Fuel services revenue net o
Slide 8: Business Segment Second Quarter
Business Segment Second Quarter Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Our primary measure of segment financial performance excludes restructuring and other charges, net and other items. The applicable portion of the restructuring and other items that related to
Slide 9: Business Segment Year-to-Date
Business Segment Year-to-Date Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Our primary measure of segment financial performance excludes restructuring and other charges, net and other items. The applicable portion of the restructuring and other items that related to e
Slide 10: Capital Expenditures Year-to-Date
Capital Expenditures Year-to-Date ($ Millions)
Slide 11: 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 (3) Free Cash Flow excludes acquisitions and changes in restricted cash Year-to-Date ($ Mi
Slide 12: Debt to Equity Ratio
Debt to Equity Ratio Note: Includes impact of accumulated net pension related equity charge of $469 million as of 6/30/09, $480 million as of 12/31/08 and $147 million as of 6/30/08. (1) Non-GAAP financial measure. Total obligations include the present value of minimum lease payments and guaranteed
Slide 13: Contents
Contents Second Quarter 2009 Results Overview Asset Management Update Outlook Q & A
Slide 14: Asset Management Update: Used Vehicles and Rental
Units held for sale were 9,000 (US: 7,500) at quarter end; up 67% from 5,400 (US: 4,600) units held for sale in the prior year Units held for sale were down 5% from 9,500 (US: 7,700) at the end of the prior quarter The number of used vehicles sold in the second quarter was 5,600 (US: 4,600), up 2% c
Slide 15: Contents
Contents Second Quarter 2009 Results Overview Asset Management Update Outlook Q & A
Slide 16: Outlook
Outlook Anticipate weak economic environment to continue throughout 2009 Weak conditions expected to primarily impact FMS segment Lower lease sales will negatively impact revenue comparisons Continuing weak demand expected to impact commercial rental results Used vehicle sales trends expected to con
Slide 17: Q&A
Q&A
Slide 18: Appendix
Appendix Business Segment Detail Central Support Services Balance Sheet Historical EPS Restatement - New Accounting Standard Asset Management Non-GAAP Financial Measures & Reconciliations
Slide 19: Fleet Management Solutions (FMS) Second Quarter
Fleet Management Solutions (FMS) Second Quarter ($ Millions) (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 20: Fleet Management Solutions (FMS) Year-to-Date
Fleet Management Solutions (FMS) Year-to-Date ($ Millions) (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 21: Supply Chain Solutions (SCS) Second Quarter
Supply Chain Solutions (SCS) Second Quarter 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 reven
Slide 22: Supply Chain Solutions (SCS) Year-to-Date
Supply Chain Solutions (SCS) Year-to-Date 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 revenue
Slide 23: Supply Chain Solutions (SCS) Historical Information
Supply Chain Solutions (SCS) Historical Information ($ Millions) 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 24: Dedicated Contract Carriage (DCC) Second Quarter
Dedicated Contract Carriage (DCC) 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. Subcontracted transportation is deducted from total revenue to arrive at operat
Slide 25: Dedicated Contract Carriage (DCC) Year-to-Date
Dedicated Contract Carriage (DCC) 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. Subcontracted transportation is deducted from total revenue to arrive at operatin
Slide 26: Central Support Services (CSS) Second Quarter
Central Support Services (CSS) Second Quarter ($ Millions)
Slide 27: Central Support Services (CSS) Year-to-Date
Central Support Services (CSS) Year-to-Date ($ Millions)
Slide 28: Balance Sheet
a Cityder Balance Sheet ( Millions) June 30, December 31, 2009 208 Cash and Cash Equivalents $ 15 $ 120 Other Current Assets 765 831 Revenue Earning Equipment, Net 4,453 4565 Operating Property and Equipment, Net 546 SAT Other Assets 661 627 Total Assets $ 6530 _$ 6690 Short-Term Debt / Current Port
Slide 29: Historical EPS Restatement - New Accounting Standard
Historical EPS Restatement - New Accounting Standard ($ Earnings Per Share) Note: EPS amounts are calculated independently and may not be additive due to rounding
Slide 30: U.S. Asset Management Update
U.S. Asset Management Update (a) U.S. only Excludes early terminations where customer purchases vehicle Current year statistics may exclude some units due to a lag in reporting (b) Number of Units Redeployments Extensions Early Terminations Early Replacements 2QYTD 04 2977 1544 2759 577 2QYTD 05 195
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: EPS and Net Earnings Reconciliation
EPS and Net Earnings Reconciliation ($ Millions or $ Earnings Per Share) Note: Amounts may not recalculate due to rounding.
Slide 33: Tax Rate Reconciliation
Tax Rate Reconciliation Note: NBT represents net before tax earnings Amounts are calculated independently for each component and may not be additive due to rounding.
Slide 34: Adjusted Return on Capital Reconciliation
Adjusted Return on Capital Reconciliation (1) Earnings calculated based on a 12-month rolling period excluding comparable earnings items during the period. (2) Interest expense includes implied interest on off-balance sheet vehicle obligations. (3) Income taxes were calculated using the effective in
Slide 35: 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 36: Debt to Equity Reconciliation
Debt to Equity Reconciliation (1) The Company uses total obligations and total obligations to equity, non-GAAP financial measures, which include certain off-balance sheet financial obligations relating to revenue earning equipment. Management believes these non-GAAP financial measures are useful to
Slide 37: CAtyder
CAtyder