Ryder System, Inc. · NYSE:R
Ryder System — Q2 2013 Earnings Presentation
37 slides from Ryder System's earnings presentation, Jul 23, 2013
Slide 1: Second Quarter 2013 Earnings Conference Call
Second Quarter 2013 Earnings Conference Call July 23, 2013 Proprietary and Confidential | 1
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 expectations for future earnings and other financial performance. Accordingl
Slide 3: Contents
Contents ► Second Quarter 2013 Results Overview ► Asset Management Update ► Earnings Forecast ►Q &A Proprietary and Confidential | 3
Slide 4: 2nd Quarter Results Overview
2nd Quarter Results Overview ► Earnings per diluted share from continuing operations were $1.19 in 2Q13 vs. $0.91 in 2Q12 – 2Q13 included net expense of $0.06 from non-operating pension costs – 2Q12 included net expense of $0.18 related to non-operating pension costs and restructuring charges ► Comp
Slide 5: Key Financial Statistics
Key Financial Statistics ($ Millions, Except Per Share Amounts) Second Quarter 2013 2012 % B/(W) Operating Revenue $ 1,313.3 $ 1,266.6 4% Fuel Services and Subcontracted Transportation Revenue 290.6 297.3 (2)% Total Revenue $ 1,604.0 $ 1,563.9 3% Earnings Per Share from Continuing Operations $ 1.19
Slide 6: Key Financial Statistics
Key Financial Statistics ($ Millions, Except Per Share Amounts) Year-To-Date 2013 2012 % B/(W) Operating Revenue $ 2,580.9 $ 2,495.5 3% Fuel Services and Subcontracted Transportation Revenue 586.1 604.6 (3)% Total Revenue $ 3,167.0 $ 3,100.1 2% Earnings Per Share from Continuing Operations $ 1.98 $
Slide 7: 2nd Quarter Results Overview - FMS
2nd Quarter Results Overview - FMS ► Fleet Management Solutions (FMS) total revenue up 2% (and operating revenue up 3%) vs. prior year – Full service lease revenue up 4% – Contract maintenance revenue down 3% – Contract-related maintenance up 12% – Commercial rental revenue down 1% ► FMS earnings in
Slide 8: 2nd Quarter Results Overview – SCS
2nd Quarter Results Overview – SCS ► Supply Chain Solutions (SCS) total revenue up 5% (and operating revenue up 6%) vs. prior year due to new business, primarily in dedicated ► SCS earnings were higher reflecting new business offset by increased commissions. Additionally, earnings growth reflects un
Slide 9: Business Segments
Business Segments ($ Millions) Second Quarter Memo: Total Revenue 2013 2012 % B/(W) 2013 2012 % B/(W) Operating Revenue: Fleet Management Solutions $ 852.5 $ 830.9 3% $ 1,121.3 $ 1,100.9 2% Supply Chain Solutions 514.8 485.7 6% 597.2 570.3 5% Eliminations (54.0) (50.0) (8)% (114.4) (107.3) (7)% Tota
Slide 10: Business Segments
Business Segments ($ Millions) Year-To-Date Memo: Total Revenue 2013 2012 % B/(W) 2013 2012 % B/(W) Operating Revenue: Fleet Management Solutions $ 1,676.5 $ 1,623.6 3% $ 2,221.0 $ 2,172.3 2% Supply Chain Solutions 1,009.6 970.3 4% 1,173.7 1,142.2 3% Eliminations (105.3) (98.4) (7)% (227.6) (214.3)
Slide 11: Capital Expenditures
Capital Expenditures ($ Millions) Year-To-Date 2013 $ 2013 2012 O/(U) 2012 Full Service Lease $ 778 $ 786 $ (8) Commercial Rental 171 500 (329) Operating Property and Equipment 40 32 8 Gross Capital Expenditures 989 1,317 (328) Less: Proceeds from Sales (primarily Revenue Earning Equipment) 229 199
Slide 12: Cash Flow from Continuing Operations
Cash Flow from Continuing Operations ($ Millions) Year-To-Date 2013 2012 Earnings from Continuing Operations $ 103 $ 82 Depreciation 466 460 Gains on Vehicle Sales, Net (46) (45) Amortization and Other Non-Cash Charges, Net 37 34 Pension Contributions (24) (40) Changes in Working Capital and Deferre
Slide 13: Debt to Equity Ratio
Debt to Equity Ratio ($ Millions) (1) (2) Memo: 161% 139% 140% 135% 118% 143% 164% 147% 213% 175% 196% 257% 260% 253% Balance Sheet Debt to Equity 6/30/2013 12/31/2012 6/30/2012 Balance Sheet Debt $ 3,914 $ 3,821 $ 3,746 Percent To Equity 253% 260% 271% Total Obligations $ 4,056 $ 3,969 $ 3,925 Perc
Slide 14: Contents
Contents ► Second Quarter 2013 Results Overview ► Asset Management Update ► Earnings Forecast ►Q &A Proprietary and Confidential | 14
Slide 15: Global Asset Management Update
Global Asset Management Update (1) ► Units held for sale were 9,600 at quarter end, up from 9,200 units held for sale in the prior year ─ Sequentially from the first quarter, units held for sale decreased by 400 units ► The number of used vehicles sold in the second quarter was 6,000, down 3% from t
Slide 16: Contents
Contents ► Second Quarter 2013 Results Overview ► Asset Management Update ► Earnings Forecast ►Q &A Proprietary and Confidential | 16
Slide 17: EPS Forecast – Continuing Operations
EPS Forecast – Continuing Operations ($ Earnings Per Share) ► Revised full year Comparable EPS forecast of $4.75 - $4.85 ► Current forecast is as follows: Third Quarter Full Year 2013 Comparable EPS Forecast(1) $ 1.41 - 1.46 $ 4.75 - 4.85 2012 Comparable EPS(2) $ 1.37 $ 4.41 (1) 2013 Comparable EPS
Slide 18: Q&A
Q&A Proprietary and Confidential | 18
Slide 19: Appendix
Appendix Business Segment Detail Central Support Services Balance Sheet Financial Indicators Forecast Asset Management Non-GAAP Financial Measures & Reconciliations Proprietary and Confidential | 19
Slide 20: Fleet Management Solutions (FMS)
Fleet Management Solutions (FMS) ($ Millions) Second Quarter 2013 2012 % B/(W) Full Service Lease $ 540.4 $ 521.5 4% Contract Maintenance 45.3 46.5 (3)% Contractual Revenue 585.7 568.0 3% Contract-related Maintenance 52.1 46.5 12% Commercial Rental 196.5 198.7 (1)% Other 18.3 17.7 3% Operating Reven
Slide 21: Fleet Management Solutions (FMS)
Fleet Management Solutions (FMS) ($ Millions) Year-To-Date 2013 2012 % B/(W) Full Service Lease $ 1,073.6 $ 1,032.0 4% Contract Maintenance 91.4 93.5 (2)% Contractual Revenue 1,165.0 1,125.5 4% Contract-related Maintenance 105.4 93.0 13% Commercial Rental 369.6 370.0 - Other 36.5 35.1 4% Operating R
Slide 22: Supply Chain Solutions (SCS)
Supply Chain Solutions (SCS) ($ Millions) Second Quarter 2013 2012 % B/(W) Automotive $ 144.8 $ 141.9 2% High-Tech 82.0 78.0 5% Retail & CPG 180.3 177.5 2% Industrial & Other 107.7 88.2 22% Operating Revenue 514.8 485.7 6% Subcontracted Transportation 82.4 84.5 (3)% Total Revenue $ 597.2 $ 570.3 5%
Slide 23: Supply Chain Solutions (SCS)
Supply Chain Solutions (SCS) ($ Millions) Year-To-Date 2013 2012 % B/(W) Automotive $ 293.4 $ 281.7 4% High-Tech 159.8 158.3 1% Retail & CPG 356.1 356.3 - Industrial & Other 200.3 174.1 15% Operating Revenue 1,009.6 970.3 4% Subcontracted Transportation 164.0 171.8 (5)% Total Revenue $ 1,173.7 $ 1,1
Slide 24: Central Support Services (CSS)
Central Support Services (CSS) ($ Millions) Second Quarter 2013 2012 % B/(W) Allocated CSS Costs $ 41.5 $ 37.5 (11)% Unallocated CSS Costs 10.6 11.2 5% Total CSS Costs $ 52.1 $ 48.7 (7)% Proprietary and Confidential | 24
Slide 25: Central Support Services (CSS)
Central Support Services (CSS) ($ Millions) Year-To-Date 2013 2012 % B/(W) Allocated CSS Costs $ 81.5 $ 76.6 (6)% Unallocated CSS Costs 22.0 20.7 (6)% Total CSS Costs $ 103.5 $ 97.3 (6)% Proprietary and Confidential | 25
Slide 26: Balance Sheet
Balance Sheet ($ Millions) June 30, December 31, 2013 2012 Cash and Cash Equivalents $ 73 $ 66 Other Current Assets 989 974 Revenue Earning Equipment, Net 5,988 5,755 Operating Property and Equipment, Net 627 625 Other Assets 883 899 Total Assets $ 8,560 $ 8,319 Short-Term Debt / Current Portion Lon
Slide 27: 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 $611 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Forecast Memo:
Slide 28: Asset Management Update
Asset Management Update (a) Number of YTD07 YTD08 YTD09 YTD10 YTD11 YTD12 YTD13 Units 5,000 Redeployments – Vehicles 4,500 4,381 coming off-lease with useful life remaining are redeployed 4,000 3,880 in the Ryder fleet (SCS or with 3,689 another Lease customer). 3,494 3,500 3,319 Extensions – Ryder
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures ► This presentation includes “non-GAAP financial measures” as defined by SEC rules. As required by SEC rules, we provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure. Non-GAAP financial measures should be considered in addition t
Slide 30: Earnings and EPS from Continuing Operations Reconciliation
Earnings and EPS from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 2Q13 - 2Q13 - 2Q12 - 2Q12 - Earnings EPS Earnings EPS Reported $ 62.6 $ 1.19 $ 46.8 $ 0.91 Non-Operating Pension Costs 2.9 0.06 4.8 0.09 Restructuring Charges - - 4.5 0.09 Comparable (1) $ 65.5 $ 1.25 $ 5
Slide 31: EBT and Tax Rate from Continuing Operations Reconciliation
EBT and Tax Rate from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 2Q13 - 2Q13 - 2Q13 - YTD13 - YTD13 - YTD13 - EBT Tax Tax Rate EBT Tax Tax Rate Reported $ 97.4 $ 34.8 35.7% $ 159.9 $ 56.5 35.3% Non-operating Pension Costs 5.0 2.1 10.2 4.2 Income from foreign currency t
Slide 32: Adjusted Return on Capital Reconciliation
Adjusted Return on Capital Reconciliation ($ Millions) 6/30/13 6/30/12 Net Earnings (1) $ 231 $ 186 Restructuring and Other Charges, Net and Other Items 7 11 Income Taxes 108 97 Adjusted Earnings Before Income Taxes 345 294 Adjusted Interest Expense (2) 142 138 Adjusted Income Taxes (3) (175) (158)
Slide 33: 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% $2,185 143
Slide 34: Debt to Equity Reconciliation
Debt to Equity Reconciliation ($ Millions) % to % to % to % to % to % to % to 12/31/2008 Equity 12/31/2009 Equity 12/31/2010 Equity 12/31/2011 Equity 12/31/2012 Equity 6/30/2013 Equity 6/30/2012 Equity Balance Sheet Debt $2,863 213% $2,498 175% $2,747 196% $3,382 257% $3,821 260% $3,914 253% $3,746
Slide 35: Cash Flow Reconciliation
Cash Flow Reconciliation ($ 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
Slide 36: Cash Flow Reconciliation
Cash Flow Reconciliation ($ Millions) 12/31/10 12/31/11 12/31/12 6/30/13 6/30/12 Cash Provided by Operating Activities from Continuing Operations $ 1,028 $ 1,042 $ 1,134 $ 564 $ 472 Proceeds from Sales (Primarily Revenue Earning Equipment) 235 300 413 229 199 Proceeds from Sale and Leaseback of Asse
Slide 37: Proprietary and Confidential |
Proprietary and Confidential |