Slide 1: First Quarter 2003 Earnings Conference Call
First Quarter 2003 Earnings Conference Call April 23, 2003 Exhibit 99.2
Slide 2: Safe Harbor Language
Safe Harbor Language Note: Certain statements and information included in this presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995. Accordingly, we advise that these forward-looking statements be evaluated with consideration given to the m
Slide 3: Contents
Contents First Quarter Results Key Initiatives Update Asset Management Update Earnings Outlook Questions
Slide 4: 1st Quarter Results
1st Quarter Results Earnings per diluted share before accounting changes were $0.33, up from $0.27 in 1Q02 Lease revenue slightly down year-over-year; demand remains weak Continuing year-over-year improvement in commercial rental revenue; pricing and utilization are stronger, increasing both revenue
Slide 5: 1st Quarter Results (continued)
1st Quarter Results (continued) Fleet Management Solutions returns negatively impacted by lower lease revenue and absorption of pension expense increase, partially offset by improved rental and asset management results Supply Chain Solutions returns positively impacted by improved operational perfor
Slide 6: Earnings Per Share First Quarter Actual Results
Earnings Per Share First Quarter Actual Results
Slide 7: Business Segment First Quarter Fully Allocated
Business Segment First Quarter Fully Allocated ($ Millions)
Slide 8: Capital Expenditures
Capital Expenditures Full Service Lease Commercial Rental Property, Plant & Equipment Acquisitions Other East 65 16 8 0 11 11% 8% 16% 65% ($ Millions) First Quarter First Quarter 2003
Slide 9: Free Cash Flow
Free Cash Flow Notes: (1) Includes non-cash restructuring and other recoveries, net and cumulative effect of changes in accounting principles (2) Changes in working capital exclude sale of receivables (3) Presentation includes non-GAAP financial measure as defined by SEC rules. Please refer to the a
Slide 10: Debt to Equity Ratio
Debt to Equity Ratio Continued and focused emphasis to strengthen the balance sheet ($ Millions) Note: 4Q2002 and beyond includes a pension related equity charge of $227.6 million
Slide 11: Contents
Contents First Quarter Results Key Initiatives Update Asset Management Update Earnings Outlook Questions
Slide 12: 2003 Key Initiatives
2003 Key Initiatives Focus on cost management and process improvement initiatives continues 2003 new initiatives added an incremental $12 million in pre-tax earnings Maintenance Asset Management Overhead Reduction SCS Margin Improvement Insurance and Safety Other $44 - $49 million 2003 Impact of Imp
Slide 13: Contents
Contents First Quarter Results Key Initiatives Update Asset Management Update Earnings Outlook Questions
Slide 14: Asset Management Update
Asset Management Update Total number of non-revenue earning equipment of 8,832 is down over 1,500 units or 15% vs. prior year period Not yet earning (NYE) vehicles are 1,009 No longer earning (NLE) vehicles are 7,823 3,805 of these units are held for sale at the used truck centers Used tractor sales
Slide 15: Asset Management Update
Asset Management Update Focused efforts in the area of asset management continues to positively impact earnings and strengthen free cash flow Redeployments and tractor term extensions have declined as anticipated, but are higher than plan levels Memo: U.S. only Redeployments Tractor Extensions Early
Slide 16: Contents
Contents First Quarter Results Key Initiatives Update Asset Management Update Earnings Outlook Questions
Slide 17: Earnings Outlook
Earnings Outlook Full year 2003 forecasted earnings remain unchanged at $1.95 - $2.00 per share. Current projection for EPS is as follows: ($ Earnings Per Share) 1st Qtr 2nd Qtr 2nd Half Full Year 2003 Actual/Proj. EPS 0.33 0.50 - 0.51 1.12 - 1.16 1.95 - 2.00
Slide 18: Contents
Contents First Quarter Results Key Initiatives Update Asset Management Update Earnings Outlook Questions
Slide 19: Appendix
Appendix Business Segment Detail Non-Revenue Earning Equipment Summary Free Cash Flow Reconciliation
Slide 20: Fleet Management Solutions (FMS)
Fleet Management Solutions (FMS) ($ Millions) First Quarter
Slide 21: Supply Chain Solutions (SCS)
Supply Chain Solutions (SCS) ($ Millions) First Quarter
Slide 22: Dedicated Contract Carriage (DCC)
Dedicated Contract Carriage (DCC) ($ Millions) First Quarter
Slide 23: Central Support Services (CSS)
Central Support Services (CSS) ($ Millions) First Quarter
Slide 24: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ Millions) First Quarter Preliminary
Slide 25: Non-Revenue Earning Equipment
Non-Revenue Earning Equipment Not Yet Earning - "NYE" No Longer Earning - "NLE" Total 10,727 Dec 2000 Total 12,040 Mar 2001 Total 10,915 June 2001 Total 10,991 Sept 2001 Total 11,072 Dec 2001 Total 10,361 Mar 2002 Units held for sale 3,485 5,215 5,115 Total 8,832 Mar 2003 Total 8,691 June 2002 Total
Slide 26: Cityder
Cityder