Ryder System, Inc. · NYSE:R
Ryder System — Q2 2011 Earnings Presentation
41 slides from Ryder System's earnings presentation, Jul 27, 2011
Slide 1: Second Quarter 2011 Earnings Conference Call
Second Quarter 2011 Earnings Conference Call July 27, 2011
Slide 2: Safe Harbor
07/27/11 Proprietary and Confidential 2 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 considerati
Slide 3: Contents
Contents Second Quarter 2011 Results Overview Asset Management Update Earnings Outlook Q & A 07/27/11 3 Proprietary and Confidential
Slide 4: 2nd Quarter Results Overview
07/27/11 Proprietary and Confidential 4 2nd Quarter Results Overview Earnings per diluted share from continuing operations were $0.79 in 2Q11 vs. $0.58 in 2Q10 2Q11 included a $0.10 charge from a tax law change and $0.03 charge from acquisition- related transaction costs Comparable earnings per shar
Slide 5: 2nd Quarter Results Overview - FMS
07/27/11 Proprietary and Confidential 5 2nd Quarter Results Overview - FMS Fleet Management Solutions (FMS) total revenue up 14% (and operating revenue up 10%) vs. prior year Contractual revenue up 2% Full service lease revenue up 3% Contract maintenance revenue decreased 2% Commercial rental revenu
Slide 6: 2nd Quarter Results Overview - SCS / DCC
07/27/11 Proprietary and Confidential 6 2nd Quarter Results Overview - SCS / DCC Supply Chain Solutions (SCS) total revenue up 26% (and operating revenue up 26%) vs. prior year due to the TLC acquisition, higher volumes and new business SCS net before tax earnings (NBT) up 37% SCS NBT percent of ope
Slide 7: Key Financial Statistics Second Quarter
07/27/11 Proprietary and Confidential 7 Key Financial Statistics Second Quarter ($ Millions, Except Per Share Amounts) Note: Amounts throughout presentation may not be additive due to rounding. Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Includes discontinued operati
Slide 8: Key Financial Statistics Year-To-Date
07/27/11 Proprietary and Confidential 8 Key Financial Statistics Year-To-Date ($ Millions, Except Per Share Amounts) Note: Amounts throughout presentation may not be additive due to rounding. Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Includes discontinued operation
Slide 9: Business Segments Second Quarter
07/27/11 Proprietary and Confidential 9 Business Segments Second Quarter Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Our primary measure of segment financial performance excludes restructuring and other charges, net and other items. The restructuring and other items
Slide 10: Business Segments Year-To-Date
07/27/11 Proprietary and Confidential 10 Business Segments Year-To-Date Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Our primary measure of segment financial performance excludes restructuring and other charges, net and other items. The restructuring and other items o
Slide 11: Capital Expenditures Year-To-Date
07/27/11 Proprietary and Confidential 11 Capital Expenditures Year-To-Date ($ Millions) Note: Amounts may not recalculate due to rounding.
Slide 12: Cash Flow from Continuing Operations Year-To-Date
07/27/11 Proprietary and Confidential 12 Cash Flow from Continuing Operations Year-To-Date ($ Millions) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment. Fr
Slide 13: Debt to Equity Ratio
07/27/11 Proprietary and Confidential 13 Debt to Equity Ratio Note: Equity includes impact of accumulated net pension related equity charge of $418 million as of 6/30/11, $423 million as of 12/31/10 and $407 million as of 6/30/10. The Company uses total obligations and total obligations to equity, n
Slide 14: Contents
Contents Second Quarter 2011 Results Overview Asset Management Update Earnings Outlook Q & A 04/26/11 14 Proprietary and Confidential
Slide 15: Asset Management Update
07/27/11 Proprietary and Confidential 15 Units held for sale were 5,000 at quarter end; down 15% from 5,900 units held for sale in the prior year Units held for sale remained unchanged from the end of the prior quarter The number of used vehicles sold in the second quarter were 4,400, down 6% compar
Slide 16: Contents
Contents Second Quarter 2011 Results Overview Asset Management Update Earnings Outlook Q & A 04/26/11 16 Proprietary and Confidential
Slide 17: EPS Forecast - Continuing Operations
07/27/11 17 EPS Forecast - Continuing Operations ($ Earnings Per Share) Proprietary and Confidential Non-GAAP financial measure. (Comparable EPS in FY10 excludes a gain on sale of an international asset of $0.02, tax benefits of $0.21 and acquisition costs of $0.08. Comparable EPS in 3Q11 excludes $
Slide 18: Q&A
Q&A
Slide 19: Appendix
Appendix Business Segment Detail Central Support Services Balance Sheet Asset Management Financial Indicators Forecast Non-GAAP Financial Measures & Reconciliations 07/27/11 19 Proprietary and Confidential
Slide 20: Fleet Management Solutions (FMS) Second Quarter
07/27/11 Proprietary and Confidential 20 Fleet Management Solutions (FMS) Second Quarter ($ Millions)
Slide 21: Fleet Management Solutions (FMS) Year-To-Date
07/27/11 Proprietary and Confidential 21 Fleet Management Solutions (FMS) Year-To-Date ($ Millions)
Slide 22: Supply Chain Solutions (SCS) Second Quarter
07/27/11 Proprietary and Confidential 22 Supply Chain Solutions (SCS) Second Quarter ($ Millions)
Slide 23: Supply Chain Solutions (SCS) Year-To-Date
07/27/11 Proprietary and Confidential 23 Supply Chain Solutions (SCS) Year-To-Date ($ Millions)
Slide 24: Dedicated Contract Carriage (DCC) Second Quarter
07/27/11 Proprietary and Confidential 24 Dedicated Contract Carriage (DCC) Second Quarter ($ Millions)
Slide 25: Dedicated Contract Carriage (DCC) Year-To-Date
07/27/11 Proprietary and Confidential 25 Dedicated Contract Carriage (DCC) Year-To-Date ($ Millions)
Slide 26: Central Support Services (CSS) Second Quarter
07/27/11 Proprietary and Confidential 26 Central Support Services (CSS) Second Quarter ($ Millions)
Slide 27: Central Support Services (CSS) Year-To-Date
07/27/11 Proprietary and Confidential 27 Central Support Services (CSS) Year-To-Date ($ Millions)
Slide 28: Balance Sheet
07/27/11 Proprietary and Confidential 28 Balance Sheet ($ Millions)
Slide 29: U.S. Asset Management Update
07/27/11 Proprietary and Confidential 29 U.S. Asset Management Update (a) U.S. only Excludes early terminations where customer purchases vehicle Current year statistics may exclude some units due to a lag in reporting (b) Number of Units (c) (c)
Slide 30: Free Cash Flow
Free Cash Flow FSL 974 449 536 459 863 1073 1493 889 986 548 647 1060 Commercial Rental 213 131 20 220 242 251 195 219 171 7 379 575 PP&E/Other 102 77 44 46 60 75 69 74 108 56 62 120 07/27/11 Proprietary and Confidential 30 Free Cash Flow 1054 835 949 1091 1381 1179 1252 1684 1571 1266 1328 1500 200
Slide 31: Adjusted Return on Capital History
Adjusted Return on Capital(1) History Proprietary and Confidential 31 Adjusted Return on Capital (ROC) Cost of Capital (COC) Return on Equity 15.3% 14.6% 15.5% 14.2% 11.2% 4.4% 8.4% 10.0% 11.2% Total Capital (2) $3,359 $3,846 $4,184 $4,789 $4,841 $4,244 $4,030 $4,558 $4,641 ROC O/(U) COC 0.8% 1.0% 1
Slide 32: Non-GAAP Financial Measures
07/27/11 Proprietary and Confidential 32 Non-GAAP Financial Measures This presentation includes "non-GAAP financial measures" as defined by SEC rules. As required by SEC rules, we provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure and an explanation why m
Slide 33: Earnings and EPS from Continuing Operations Reconciliation
Earnings and EPS from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) Proprietary and Confidential 33 33 Proprietary and Confidential 07/27/11
Slide 34: NBT and Tax Rate from Continuing Operations Reconciliation
Proprietary and Confidential 34 NBT and Tax Rate from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 07/27/11 34 Proprietary and Confidential
Slide 35: Adjusted Return on Capital Reconciliation
07/27/11 Proprietary and Confidential 35 Adjusted Return on Capital Reconciliation Earnings calculated based on a 12-month rolling period. Interest expense includes implied interest on off-balance sheet vehicle obligations. Income taxes were calculated by excluding taxes related to comparable earnin
Slide 36: Adjusted Return on Capital Reconciliation
07/27/11 Proprietary and Confidential 36 Adjusted Return on Capital Reconciliation ($ Millions) Earnings calculated based on a 12-month rolling period. Interest expense includes interest on off-balance sheet vehicle obligations. Income taxes were calculated by excluding taxes related to comparable e
Slide 37: Debt to Equity Reconciliation
07/27/11 Proprietary and Confidential 37 Debt to Equity Reconciliation 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. ($ Millions)
Slide 38: Debt to Equity Reconciliation
07/27/11 Proprietary and Confidential 38 Debt to Equity Reconciliation ($ Millions) Note: Amounts may not recalculate due to rounding.
Slide 39: Cash Flow Reconciliation
07/2711 Proprietary and Confidential 39 ($ Millions) Cash Flow Reconciliation 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 invest
Slide 40: Cash Flow Reconciliation
07/27/11 Proprietary and Confidential 40 ($ Millions) Cash Flow Reconciliation 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 inves
Slide 41: CAyder
CAyder