Slide 1: Third Quarter 2011 Earnings Conference Call
Exhibit 99.2 Third Quarter 2011 Earnings Conference Call October 25, 2011
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 Third Quarter 2011 Results Overview Asset Management Update Earnings Outlook Future Financial Reporting Enhancements Q&A 10/25/11 Proprietary and Confidential 3
Slide 4: 3rd Quarter Results Overview
3rd Quarter Results Overview Earnings per diluted share from continuing operations were $1.10 in 3Q11 vs. $0.76 in 3Q10 – 3Q11 included a $0.01 tax benefit from acquisition-related transaction costs Comparable earnings per share from continuing operations were $1.09 in 3Q11 vs. $0.76 in 3Q10 Total r
Slide 5: Key Financial Statistics - Third Quarter
Key Financial Statistics ($ Millions, Except Per Share Amounts) Third Quarter 10/25/11 Proprietary and Confidential 5
Slide 6: Key Financial Statistics - Year-To-Date
Key Financial Statistics ($ Millions, Except Per Share Amounts) Year-To-Date 10/25/11 Proprietary and Confidential 6
Slide 7: 3rd Quarter Results Overview - FMS
3rd Quarter Results Overview - FMS Fleet Management Solutions (FMS) total revenue up 16% (and operating revenue up 12%) vs. prior year – Contractual revenue up 4% – Full service lease revenue up 5% – Contract maintenance revenue decreased 2% – Commercial rental revenue up 40% – Fuel revenue up 28% d
Slide 8: 3rd Quarter Results Overview – SCS / DCC
3rd Quarter Results Overview – SCS / DCC Supply Chain Solutions (SCS) total revenue up 26% (and operating revenue up 26%) vs. prior year due to the TLC acquisition, higher volumes and new business SCS net before tax earnings (NBT) up 47% – SCS NBT percent of operating revenue up 100 basis points to
Slide 9: Business Segments - Third Quarter
Business Segments ($ Millions) Third Quarter Memo: Total Revenue 2011 2010 % B/(W) 2011 2010 % B/(W) Operating Revenue: (1) Fleet Management Solutions $ 824.7 $ 733.9 12% $ 1,099.0 $ 948.9 16% Supply Chain Solutions 326.8 258.5 26% 406.1 322.9 26% Dedicated Contract Carriage 149.5 118.7 26% 158.9 12
Slide 10: Business Segments - Year-To-Date
Business Segments ($ Millions) Year-To-Date Memo: Total Revenue 2011 2010 % B/(W) 2011 2010 % B/(W) Operating Revenue: (1) Fleet Management Solutions $ 2,322.5 $ 2,120.3 10% $ 3,143.7 $ 2,764.1 14% Supply Chain Solutions 966.2 746.7 29% 1,196.7 927.2 29% Dedicated Contract Carriage 419.5 349.3 20% 4
Slide 11: Capital Expenditures
Capital Expenditures ($ Millions) Year-To-Date 2011 $ 2011 2010 O/(U) 2010 Full Service Lease $ 614 $ 488 $ 127 Commercial Rental 580 358 222 Operating Property and Equipment 55 49 6 Gross Capital Expenditures 1,249 895 354 Less: Proceeds from Sales (Primarily Revenue Earning Equipment) 224 162 62 N
Slide 12: Cash Flow from Continuing Operations
Cash Flow from Continuing Operations ($ Millions) Year-To-Date 2011 2010 Earnings from Continuing Operations $ 124 $ 83 Depreciation 645 628 Gains on Vehicle Sales, Net (46) (18) Amortization and Other Non-Cash Charges, Net 41 40 Pension Contributions (12) (11) Changes in Working Capital and Deferre
Slide 13: Debt to Equity Ratio
Debt to Equity Ratio ($ Millions) 300% 275% 275% 234% 225% 225% 250% 203% 201% 183% Total Obligations 200% 168% 157% to Equity (1) 146% 151% 150% 129% 100% Balance Sheet Debt to Equity 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 09/30/11
Slide 14: Contents
Contents Third Quarter 2011 Results Overview Asset Management Update Earnings Outlook Future Financial Reporting Enhancements Q&A 10/25/11 Proprietary and Confidential 14
Slide 15: Global Asset Management Update
(1) Global Asset Management Update Units held for sale were 5,100 at quarter end; up 9% from 4,700 units held for sale in the prior year – Used vehicle inventory remains below target levels The number of used vehicles sold in the third quarter were 4,100, down 7% compared with prior year due to lowe
Slide 16: Contents
Contents Third Quarter 2011 Results Overview Asset Management Update Earnings Outlook Future Financial Reporting Enhancements Q&A 10/25/11 Proprietary and Confidential 16
Slide 17: EPS Forecast – Continuing Operations
EPS Forecast – Continuing Operations ($ Earnings Per Share) Increasing full year 2011 EPS forecast from $3.33 – 3.43 to $3.44 – 3.49 Current forecast is as follows: Fourth Quarter Full Year (1) 2011 Comparable EPS Forecast $ 0.92 - 0.97 $ 3.44 - 3.49 2010 Comparable EPS (1) $0.65 $2.22 (1) Non-GAAP
Slide 18: Contents
Contents Third Quarter 2011 Results Overview Asset Management Update Earnings Outlook Future Financial Reporting Enhancements Q&A 10/25/11 Proprietary and Confidential 18
Slide 19: Future Financial Reporting Enhancements
Future Financial Reporting Enhancements Ryder will make the following changes to the company’s financial statement reporting: Reporting Change Effective Date Merits of Change New income statement 4Q2011 Increased visibility to types of presentation revenue Aligns direct costs with revenues Combined
Slide 20: Future Financial Reporting Enhancements
Future Financial Reporting Enhancements Revised format for the consolidated RSI income statement Current Presentation Future Presentation Revenues: Lease and rentals XXX A Services XXX A Fuel services XXX A Revenue XXX A Total Revenues XXX A Costs and Expenses: Operating expense XXX B Cost of lease
Slide 21: Future Financial Reporting Enhancements
Future Financial Reporting Enhancements Combined financial reporting for SCS and DCC segments Automotive xxx High-Tech xxx Retail & CPG xxx Industrial & Other xxx CURRENT DCC SEGMENT REVENUE WILL BE REPORTED IN THEIR RESPECTIVE INDUSTRY VERTICALS Operating Revenue xxx Subcontracted Transportation xx
Slide 22: Future Financial Reporting Enhancements
Future Financial Reporting Enhancements Exclusion of non-service cost components of pension from segment NBT - Non-service cost components consist primarily of interest cost, expected return on plan assets and recognized net actuarial gains/losses Current Presentation Future Presentation Segment Net
Slide 23: Contents
Contents Third Quarter 2011 Results Overview Asset Management Update Earnings Outlook Future Financial Reporting Enhancements Q&A 10/25/11 Proprietary and Confidential 23
Slide 24: Q&A
Q&A 10/25/11 Proprietary and Confidential 24
Slide 25: Appendix
Appendix Business Segment Detail Central Support Services Balance Sheet Asset Management Financial Indicators Forecast Non-GAAP Financial Measures & Reconciliations 10/25/11 Proprietary and Confidential 25
Slide 26: Fleet Management Solutions (FMS) - Third Quarter
Fleet Management Solutions (FMS) ($ Millions) Third Quarter 2011 2010 % B/(W) Full Service Lease $ 509.9 $ 487.5 5% Contract Maintenance 39.1 40.1 (2)% Contractual Revenue 549.0 527.6 4% Contract-related Maintenance 51.6 41.2 25% Commercial Rental 206.5 147.9 40% Other 17.5 17.2 2% Operating Revenue
Slide 27: Fleet Management Solutions (FMS) - Year-To-Date
Fleet Management Solutions (FMS) ($ Millions) Year-To-Date 2011 2010 % B/(W) Full Service Lease $ 1,487.9 $ 1,449.4 3% Contract Maintenance 116.4 119.8 (3)% Contractual Revenue 1,604.3 1,569.1 2% Contract-related Maintenance 143.7 121.2 18% Commercial Rental 522.2 379.5 38% Other 52.4 50.4 4% Operat
Slide 28: Supply Chain Solutions (SCS) - Third Quarter
Supply Chain Solutions (SCS) ($ Millions) Third Quarter 2011 2010 % B/(W) Automotive $ 115.3 $ 114.7 1% High-Tech 59.2 57.2 4% Retail & CPG 109.6 45.7 140% Industrial & Other 42.6 40.8 4% Operating Revenue 326.8 258.5 26% Subcontracted Transportation 79.3 64.3 23% Total Revenue $ 406.1 $ 322.9 26% S
Slide 29: Supply Chain Solutions (SCS) - Year-To-Date
Supply Chain Solutions (SCS) ($ Millions) Year-To-Date 2011 2010 % B/(W) Automotive $ 345.9 $ 334.4 3% High-Tech 176.8 161.8 9% Retail & CPG 317.3 131.7 141% Industrial & Other 126.3 118.7 6% Operating Revenue 966.2 746.7 29% Subcontracted Transportation 230.5 180.5 28% Total Revenue $ 1,196.7 $ 927
Slide 30: Dedicated Contract Carriage (DCC) - Third Quarter
Dedicated Contract Carriage (DCC) ($ Millions) Third Quarter 2011 2010 % B/(W) Operating Revenue $ 149.5 $ 118.7 26% Subcontracted Transportation 9.5 2.7 248% Total Revenue $ 158.9 $ 121.4 31% Segment Net Before Tax Earnings (NBT) $ 8.4 $ 8.6 (3)% Segment NBT as % of Total Revenue 5.3% 7.1% Segment
Slide 31: Dedicated Contract Carriage (DCC) - Year-To-Date
Dedicated Contract Carriage (DCC) ($ Millions) Year-To-Date 2011 2010 % B/(W) Operating Revenue $ 419.5 $ 349.3 20% Subcontracted Transportation 24.5 11.5 114% Total Revenue $ 444.0 $ 360.8 23% Segment Net Before Tax Earnings (NBT) $ 25.5 $ 24.4 4% Segment NBT as % of Total Revenue 5.7% 6.8% Segment
Slide 32: Central Support Services (CSS) - Third Quarter
Central Support Services (CSS) ($ Millions) Third Quarter 2011 2010 % B/(W) Allocated CSS Costs $ 43.0 $ 35.8 (20)% Unallocated CSS Costs 11.6 12.0 3% Total CSS Costs $ 54.6 $ 47.7 (14)% 10/25/11 Proprietary and Confidential 32
Slide 33: Central Support Services (CSS) - Year-To-Date
Central Support Services (CSS) ($ Millions) Year-To-Date 2011 2010 % B/(W) Allocated CSS Costs $ 120.3 $ 105.0 (15)% Unallocated CSS Costs 31.6 30.7 (3)% Total CSS Costs $ 151.9 $ 135.7 (12)% 10/25/11 Proprietary and Confidential 33
Slide 34: Balance Sheet
Balance Sheet ($ Millions) September 30, December 31, 2011 2010 Cash and Cash Equivalents $ 116 $ 213 Other Current Assets 983 810 Revenue Earning Equipment, Net 4,828 4,201 Operating Property and Equipment, Net 627 607 Other Assets 892 821 Total Assets $ 7,446 $ 6,652 Short-Term Debt / Current Port
Slide 35: U.S. Asset Management Update
U.S. Asset Management Update (a) Number of Units YTD 06 YTD 07 YTD 08 YTD 09 YTD 10 YTD 11 8,000 Redeployments – vehicles 7,000 6,752 coming off-lease with useful life remaining are redeployed in the Ryder fleet (Commercial Rental, DCC, SCS, or with 6,000 another Lease customer). 5,255 5,119 Extensi
Slide 36: Financial Indicators Forecast
Financial Indicators Forecast (1) Total Cash Generated (2) (3) Gross Capital Expenditures (3) ($ Millions) Full Service Lease $1,684 Commercial Rental $1,571 $1,500 $1,757 $1,755 $1,381 PP&E/Other $1,328 $1,252 $1,266 $1,399 $1,179 $1,054 $1,091 $1,289 $1,165 $1,182 $1,265 $949 $1,088 $835 $657 $725
Slide 37: Adjusted Return on Capital History
(1) Adjusted Return on Capital History Adjusted 7.7% 7.8% 7.9% Return on 7.4% 7.3% Capital (ROC) 6.3% 6.1% 5.6% 5.7% 6.9% 6.8% 6.7% 6.6% 6.5% 4.8% Cost of 4.1% 5.6% 5.5% Capital (COC) 2004 2005 2006 2007 2008 2009 2010 Prior Current 2011 2011 Forecast(3) Forecast ROC O/(U) COC 0.8% 1.0% 1.2% 0.8% 0.
Slide 38: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes “non-GAAP financial measures” as defined by SEC rules. As required by SEC rules, we provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure and an explanation why management believes that presentation of t
Slide 39: Earnings and EPS from Continuing Operations Reconciliation
Earnings and EPS from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 3Q11 - 3Q11 - Earnings EPS Reported $ 56.9 $ 1.10 Tax Benefits (0.6) (0.01) Comparable $ 56.4 $ 1.09 YTD 11 - YTD 11 - Earnings EPS Reported $ 123.7 $ 2.39 Tax Law Changes / Benefits 4.8 0.09 Acquisition
Slide 40: NBT and Tax Rate from Continuing Operations Reconciliation
NBT and Tax Rate from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 3Q11 - 3Q11 - 3Q11 - NBT Tax Tax Rate Reported $ 87.7 $ 30.7 35.0% Tax Benefit - 0.6 Comparable $ 87.7 $ 31.3 35.7% YTD 11 - YTD 11 - YTD 11 - NBT Tax Tax Rate Reported $ 206.3 $ 82.6 40.0% Tax Law Change
Slide 41: Adjusted Return on Capital Reconciliation
Adjusted Return on Capital Reconciliation ($ Millions) 9/30/11 9/30/10 (1) Net Earnings $ 159 $ 89 Restructuring and Other Charges, Net and Other Items 9 16 Income Taxes 90 62 Adjusted Earnings Before Income Taxes 257 167 (2) Adjusted Interest Expense 136 133 (3) Adjusted Income Taxes (148) (118) Ad
Slide 42: Adjusted Return on Capital Reconciliation
Adjusted Return on Capital Reconciliation ($ Millions) 2004 2005 2006 2007 2008 2009 2010 (1) Net earnings $ 216 $ 227 $ 249 $ 254 $ 200 $ 62 $ 118 Cumulative effect of change in accounting principle - 2 - - - - - Restructuring and other charges, net and other items (24) (2) - 1 70 30 6 Income taxes
Slide 43: 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% $2,185 143
Slide 44: Debt to Equity Reconciliation
Debt to Equity Reconciliation ($ Millions) % to % to % to % to % to 12/31/08 Equity 12/31/09 Equity 12/31/10 Equity 9/30/10 Equity 9/30/11 Equity Balance Sheet Debt $2,863 213% $2,498 175% $2,747 196% $2,530 180% $3,199 220% Receivables Sold - - - - - PV of minimum lease payments and guaranteed resi
Slide 45: Cash Flow Reconciliation
Cash Flow Reconciliation ($ Millions) 12/31/00 (4) 12/31/01 (4) 12/31/02 (4) 12/31/03 (4) 12/31/04 (4) 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 46: Cash Flow Reconciliation
Cash Flow Reconciliation ($ Millions) 12/31/10 9/30/10 9/30/11 Cash Provided by Operating Activities from Continuing Operations $ 1,028 $ 804 $ 782 Proceeds from Sales (Primarily Revenue Earning Equipment) 235 162 224 Collections of Direct Finance Leases 62 46 46 Other, Net 3 2 - Total Cash Generate
Slide 47: * * * * * * * ********
* * * * * * * ********