Slide 1: Second Quarter 2007 Earnings Conference Call
Second Quarter 2007 July 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 Second Quarter 2007 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 4: 2nd Quarter Results Overview
2nd Quarter Results Overview Earnings per diluted share were $1.07 versus $1.13 in 2Q06 2Q06 included an $0.11 income tax benefit Comparable earnings per diluted share were $1.07, up 5% from $1.02 in 2Q06 2Q07 included $0.01 restructuring charge related to early debt retirement Total revenue up 4% (
Slide 5: 2nd Quarter Results Overview (cont'd)
2nd Quarter Results Overview (cont'd) Supply Chain Solutions (SCS) total revenue up 16% (and operating revenue up 13%) vs. prior year, reflecting new/expanded business SCS net before tax earnings (NBT) down 14% Comparable results flat excluding a $2.5 million benefit in 2Q06 related to a contract te
Slide 6: Key Financial Statistics Second Quarter
Key Financial Statistics Second Quarter (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (2) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the business and as a measure of sales activity. Fuel services reven
Slide 7: Key Financial Statistics Year-to-Date
Key Financial Statistics Year-to-Date (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (2) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the business and as a measure of sales activity. Fuel services revenue
Slide 8: Business Segment Second Quarter
Business Segment Second Quarter (1) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. (2) Our primary measure of segment financial performance excludes restructuring and other (charges)/recoveries, net; however, the applicable portion of the restructuring and other (charge
Slide 9: Business Segment Year-to-Date
Business Segment Year-to-Date ($ Millions) (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 ot
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 Year-to-Date ($ Millions)
Slide 12: Debt to Equity Ratio
Debt to Equity Ratio Note: Includes impact of accumulated net pension related equity charge of $185 million as of 6/30/07, $201 million as of 12/31/06, and $221 million as of 6/30/06. (1) Non-GAAP financial measure. Total obligations include the present value of minimum lease payments and guaranteed
Slide 13: 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 $176 million payment to the IRS related to full resolution of 1
Slide 14: Contents
Contents Second Quarter 2007 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 15: Asset Management Update
Asset Management Update Note: U.S. only The number of used vehicles sold in the second quarter was 6,499, up 22% compared with prior year Retail sales proceeds per unit for tractors and trucks were down 11% and 2%, respectively, in the second quarter compared with prior year Vehicles no longer earni
Slide 16: Contents
Contents Second Quarter 2007 Results Overview Asset Management Update Earnings Outlook Q & A
Slide 17: EPS Forecast
EPS Forecast (1) Non-GAAP financial measure. Excludes tax changes and pension charge in 2006. ($ Earnings Per Share) Narrowing full year 2007 earnings forecast range to $4.30 to $4.35 per share Current forecast for EPS is as follows: * Excludes any charges related to Michigan tax law change, the mag
Slide 18: Q & A
Q & A
Slide 19: Fleet Management Solutions (FMS) Second Quarter
Fleet Management Solutions (FMS) Second Quarter (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the FMS business segment and as a measure of sales activity. Fuel services revenue, which is directly impacted by fluctuations in market fuel
Slide 20: Supply Chain Solutions (SCS) Second Quarter
Supply Chain Solutions (SCS) Second Quarter (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the SCS business segment and as a measure of sales activity. Subcontracted transportation is deducted from total revenue to arrive at operating r
Slide 21: Supply Chain Solutions (SCS) Year-to-Date
Supply Chain Solutions (SCS) Year-to-Date (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the SCS business segment and as a measure of sales activity. Subcontracted transportation is deducted from total revenue to arrive at operating rev
Slide 22: Dedicated Contract Carriage (DCC) Second Quarter
Dedicated Contract Carriage (DCC) Second Quarter ($ 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. Subcontracted transportation is deducted from total revenue to arr
Slide 23: Dedicated Contract Carriage (DCC) Year-to-Date
Dedicated Contract Carriage (DCC) Year-to-Date ($ 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. Subcontracted transportation is deducted from total revenue to arriv
Slide 24: Central Support Services (CSS) Second Quarter
Central Support Services (CSS) Second Quarter ($ Millions)
Slide 25: Central Support Services (CSS) Year-to-Date
Central Support Services (CSS) Year-to-Date ($ Millions)
Slide 26: Balance Sheet
Balance Sheet Mittions) June 30, December 31, i 200 FS a srere 2006 esse Gash and Cash Equivalents $ 110 § 129 Other Current Assets 1440 1,133 Revenue Earning Equipment, Net 4802 4509 Operating Property and Equipment, Net 515 499 Other Assets 563 559 Total Assets $6930 $ 6829 Short-Term Debt/ Curren
Slide 27: Asset Management Update
Redeployments Extensions Early Terminations Early Replacements 1H02 3357 2983 3284 601 1H03 2895 2444 2684 465 1H04 2977 1544 2354 577 1H05 1959 1728 2341 883 1H06 2037 1985 1952 739 1H07 2102 1800 2296 1326 Asset Management Update (a) (a) U.S. only (b) Excludes early terminations where customer pur
Slide 28: 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 29: 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 30: EPS and Net Earnings Reconciliation
EPS and Net Earnings 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 31: 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 32: 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 33: 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 34: 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 35: 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 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: Ryder
TAyder