Ryder System, Inc. · NYSE:R

Ryder System — Q1 2013 Earnings Presentation

32 slides from Ryder System's earnings presentation, Apr 23, 2013

  1. Slide 1: First Quarter 2013 Earnings Conference Call

    First Quarter 2013 Earnings Conference Call April 23, 2013 1

  2. Slide 2: Safe Harbor and Non-GAAP Financial Measures

    Safe Harbor and Non-GAAP Financial Measures Certain statements and information included in this presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995, including our assumptions regarding general economic conditions and market conditions in e

  3. Slide 3: Contents

    Contents ► First Quarter 2013 Results Overview ► Asset Management Update ► Earnings Forecast ►Q &A © 2013 Ryder System, Inc. All rights reserved. 3

  4. Slide 4: 1st Quarter Results Overview

    1st Quarter Results Overview ► Earnings per diluted share from continuing operations were $0.79 in 1Q13 vs. $0.68 in 1Q12 – 1Q13 included net expense of $0.02 from non-operating pension costs, partially offset by a foreign currency translation benefit – 1Q12 included net expense of $0.01 from acquis

  5. Slide 5: Key Financial Statistics

    Key Financial Statistics ($ Millions, Except Per Share Amounts) First Quarter 2013 2012 % B/(W) Operating Revenue $ 1,267.5 $ 1,228.9 3% Fuel Services and Subcontracted Transportation Revenue 295.5 307.4 (4)% Total Revenue $ 1,563.0 $ 1,536.3 2% Earnings Per Share from Continuing Operations $ 0.79 $

  6. Slide 6: 1st Quarter Results Overview - FMS

    1st Quarter Results Overview - FMS ► Fleet Management Solutions (FMS) total revenue up 3% (and operating revenue up 4%) vs. prior year – Contractual revenue up 4% – Full service lease revenue up 4% – Contract maintenance revenue down 2% – Commercial rental revenue up 1% – Fuel revenue down 1% ► FMS

  7. Slide 7: 1st Quarter Results Overview – SCS

    1st Quarter Results Overview – SCS ► Supply Chain Solutions (SCS) total revenue was up 1% (and operating revenue up 2%) vs. prior year due to higher operating revenue, partially offset by lower subcontracted transportation ─ Operating revenue was up 2% vs. prior year due to higher freight volumes an

  8. Slide 8: Business Segments

    Business Segments ($ Millions) First Quarter Memo: Total Revenue 2013 2012 % B/(W) 2013 2012 % B/(W) Operating Revenue: Fleet Management Solutions $ 824.0 $ 792.7 4% $ 1,099.7 $ 1,071.4 3% Supply Chain Solutions 494.8 484.6 2% 576.5 571.9 1% Eliminations (51.3) (48.4) (6)% (113.2) (107.0) (6)% Total

  9. Slide 9: Capital Expenditures

    Capital Expenditures ($ Millions) First Quarter 2013 $ 2013 2012 O/(U) 2012 Full Service Lease $ 381 $ 436 $ (55) Commercial Rental 47 335 (288) Operating Property and Equipment 22 16 6 Gross Capital Expenditures 449 787 (338) Less: Proceeds from Sales (primarily Revenue Earning Equipment) 113 94 19

  10. Slide 10: Cash Flow from Continuing Operations

    Cash Flow from Continuing Operations ($ Millions) First Quarter 2013 2012 Earnings from Continuing Operations $ 41 $ 35 Depreciation 232 227 Gains on Vehicle Sales, Net (23) (22) Amortization and Other Non-Cash Charges, Net 18 14 Pension Contributions (4) (4) Changes in Working Capital and Deferred

  11. Slide 11: Debt to Equity Ratio

    Debt to Equity Ratio ($ Millions) (1) 300% 275% Total Obligations to Equity Pension Impact 261% 270% 268% 275% 250% 234% 225% 201% 183% 203% 200% 168% 146% 151% 157% 150% 129% 100% 50% 0% 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/3

  12. Slide 12: Contents

    Contents ► First Quarter 2013 Results Overview ► Asset Management Update ► Earnings Forecast ►Q &A © 2013 Ryder System, Inc. All rights reserved. 12

  13. Slide 13: Global Asset Management Update

    (1) Global Asset Management Update ► Units held for sale were 10,000 at quarter end, up from 8,700 units held for sale in the prior year ─ Sequentially from the fourth quarter, units held for sale increased by 800 units ► The number of used vehicles sold in the first quarter was 5,800, up 23% from t

  14. Slide 14: Contents

    Contents ► First Quarter 2013 Results Overview ► Asset Management Update ► Earnings Forecast ►Q &A © 2013 Ryder System, Inc. All rights reserved. 14

  15. Slide 15: EPS Forecast – Continuing Operations

    EPS Forecast – Continuing Operations ($ Earnings Per Share) ► Reaffirming full year Comparable EPS forecast of $4.70 - $4.85 ► Current forecast is as follows: Second Quarter Full Year 2013 Comparable EPS Forecast (1) $ 1.20 - 1.24 $ 4.70 - 4.85 2012 Comparable EPS $ 1.09 $ 4.41 (1) 2013 Comparable E

  16. Slide 16: Q&A

    Q&A © 2013 Ryder System, Inc. All rights reserved. 16

  17. Slide 17: Appendix

    Appendix Business Segment Detail Central Support Services Balance Sheet Financial Indicators Forecast Asset Management Non-GAAP Financial Measures & Reconciliations © 2013 Ryder System, Inc. All rights reserved. 17

  18. Slide 18: Fleet Management Solutions (FMS)

    Fleet Management Solutions (FMS) ($ Millions) First Quarter 2013 2012 % B/(W) Full Service Lease $ 533.2 $ 510.6 4% Contract Maintenance 46.1 47.0 (2)% Contractual Revenue 579.3 557.6 4% Contract-related Maintenance 53.3 46.5 15% Commercial Rental 173.1 171.2 1% Other 18.2 17.4 5% Operating Revenue

  19. Slide 19: Supply Chain Solutions (SCS)

    Supply Chain Solutions (SCS) ($ Millions) First Quarter 2013 2012 % B/(W) Automotive $ 148.6 $ 139.7 6% High-Tech 77.8 80.3 (3)% Retail & CPG 175.8 178.8 (2)% Industrial & Other 92.6 85.8 8% Operating Revenue 494.8 484.6 2% Subcontracted Transportation 81.6 87.3 (6)% Total Revenue $ 576.5 $ 571.9 1%

  20. Slide 20: Central Support Services (CSS)

    Central Support Services (CSS) ($ Millions) First Quarter 2013 2012 % B/(W) Allocated CSS Costs $ 40.0 $ 39.1 (2)% Unallocated CSS Costs 11.4 9.5 (20)% Total CSS Costs $ 51.3 $ 48.6 (6)% © 2013 Ryder System, Inc. All rights reserved. 20

  21. Slide 21: Balance Sheet

    Balance Sheet ($ Millions) March 31, December 31, 2013 2012 Cash and Cash Equivalents $ 77 $ 66 Other Current Assets 994 974 Revenue Earning Equipment, Net 5,809 5,755 Operating Property and Equipment, Net 626 625 Other Assets 887 899 Total Assets $ 8,392 $ 8,319 Short-Term Debt / Current Portion Lo

  22. Slide 22: Financial Indicators Forecast

    Financial Indicators Forecast (1) Gross Capital Expenditures (2) ($ Millions) $2,161 Full Service Lease $1,815 $1,757 $1,760 Commercial Rental PP&E/Other $1,399 $1,289 $1,265 $1,165 $1,182 $1,088 $657 $725 $600 $611 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Forecast Memo:

  23. Slide 23: U.S. Asset Management Update

    (a) U.S. Asset Management Update Number of 1Q 07 1Q 08 1Q 09 1Q 10 1Q 11 1Q 12 1Q 13 Units 2,500 Redeployments – Vehicles coming off-lease with useful 2,088 life remaining are redeployed 2,000 in the Ryder fleet (Commercial 1,855 Rental, SCS, or with another Lease customer). 1,701 1,684 Extensions –

  24. 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 t

  25. Slide 25: Earnings and EPS from Continuing Operations Reconciliation

    Earnings and EPS from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 1Q13 - 1Q13 - 1Q12 - 1Q12 - Earnings EPS Earnings EPS Reported $ 40.8 $0.79 $ 34.9 $0.68 Int'l Asset Gain on Sale Non-Operating Pension Costs 3.1 0.06 4.9 0.10 Benefit from Foreign Currency Translation (1

  26. Slide 26: EBT and Tax Rate from Continuing Operations Reconciliation

    EBT and Tax Rate from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 1Q13 - 1Q13 - 1Q13 - EBT Tax Tax Rate Reported $ 62.5 $ 21.7 34.7% Non-operating pension costs 5.2 2.2 Income from foreign currency translation (1.9) - Comparable (1) $ 65.8 $ 23.9 36.2% 1Q12 - 1Q12 - 1Q1

  27. Slide 27: Adjusted Return on Capital Reconciliation

    Adjusted Return on Capital Reconciliation ($ Millions) 3/31/13 3/31/12 Net Earnings (1) $ 216 $ 179 Restructuring and Other Charges, Net and Other Items 14 6 Income Taxes 100 103 Adjusted Earnings Before Income Taxes 329 288 (2) Adjusted Interest Expense 143 135 Adjusted Income Taxes (3) (170) (156)

  28. Slide 28: Debt to Equity Reconciliation

    Debt to Equity Reconciliation ($ Millions) % to % to % to % to % to % to % to % to 12/31/00 Equity 12/31/01 Equity 12/31/02 Equity 12/31/03 Equity 12/31/04 Equity 12/31/05 Equity 12/31/06 Equity 12/31/07 Equity Balance Sheet Debt $2,017 161% $1,709 139% $1,552 140% $1,816 135% $1,783 118% $2,185 143

  29. Slide 29: Debt to Equity Reconciliation

    Debt to Equity Reconciliation ($ Millions) % to % to % to % to % to % to % to 12/31/08 Equity 12/31/09 Equity 12/31/10 Equity 12/31/11 Equity 12/31/12 Equity 3/31/13 Equity 3/31/12 Equity Balance Sheet Debt $2,863 213% $2,498 175% $2,747 196% $3,382 257% $3,821 260% $3,846 258% $3,593 262% Receivabl

  30. Slide 30: Cash Flow Reconciliation

    Cash Flow Reconciliation ($ Millions) 12/31/00 (1) 12/31/01 (1) 12/31/02 (1) 12/31/03 (1) 12/31/04 (1) 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 Cash Provided by Operating Activities $ 1,023 $ 365 $ 617 $ 803 $ 867 $ 776 $ 852 $ 1,097 $ 1,248 $ 985 Less: Changes in Bal. of Trade Rec. Sold (270) 2

  31. Slide 31: Cash Flow Reconciliation

    Cash Flow Reconciliation ($ Millions) 12/31/10 12/31/11 12/31/12 3/31/13 3/31/12 Cash Provided by Operating Activities from Continuing Operations $ 1,028 $ 1,042 $ 1,134 $ 249 $ 186 Proceeds from Sales (Primarily Revenue Earning Equipment) 235 300 413 113 94 Proceeds from Sale and Leaseback of Asset

  32. Slide 32: © 2013 Ryder System, Inc. All rights reserved.

    © 2013 Ryder System, Inc. All rights reserved.

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