Slide 1: Fourth Quarter 2002 Earnings Conference Call
Fourth Quarter 2002 Earnings Conference Call February 6, 2003
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 Fourth Quarter Results Key Initiatives Update Asset Management Update Questions
Slide 4: 4th Quarter Results Overview
4th Quarter Results Earnings per diluted share were $0.52, up from breakeven in the fourth quarter 2001 Revenue Continues to be soft in most business segments Commercial rental increased for first time in 10 quarters Increases realized in European operations and in U.S. automotive logistics Leasing
Slide 5: 4th Quarter Results (continued)
4th Quarter Results (continued) Supply Chain Solutions returns negatively impacted by non-renewal of certain contracts and charges related to facility lease terminations, partially offset by improved European operating results Strong cost management in overhead areas continues to positively contribu
Slide 6: Earnings Per Share Fourth Quarter Actual Results
Earnings Per Share Fourth Quarter Actual Results
Slide 7: Earnings Per Share Full Year Actual Results
Earnings Per Share Note: 1One-time tax benefit derived due to a change in Canadian tax law Full Year Actual Results
Slide 8: Business Segment Full Year Fully Allocated
Business Segment Full Year Fully Allocated ($ Millions)
Slide 9: Capital Expenditures
Lease Rental Property, Plant & Equipment Acquisitions Other East 80 1 8 11 Capital Expenditures Lease Rental Property, Plant & Equipment Acquisitions Other East 75 3 8 0 14 Full Year 14% 8% 3% 75% ($ Millions) Fourth Quarter & Full Year 11% 8% 1% 80% Fourth Quarter
Slide 10: Free Cash Flow
Free Cash Flow Memo: 1Q 2002 FCF $99M; 2Q 2002 FCF $99M; 3Q 2002 FCF $82M; 4Q FCF $71M Note: Prior year reclassified to conform with 2002 presentation (1) Includes non-cash restructuring and other charges and cumulative effect of accounting change (2) Changes in working capital exclude sale of recei
Slide 11: Debt to Equity Ratio
Debt to Equity Ratio Continued and focused emphasis to strengthen the balance sheet ($ Millions) Note: 4Q2002 includes a pension related equity charge of $227.6 million
Slide 12: Contents
Contents Fourth Quarter Results Key Initiatives Update Asset Management Update Questions
Slide 13: 2002 Key Initiatives Status Update
2002 Key Initiatives Focus on cost management and process improvement initiatives continues Actual benefits from 2001 carryover initiatives are on plan 2002 new initiatives added an incremental $31 million in pre-tax earnings Headcount Standardization Maintenance Efficiencies Asset Management Increa
Slide 14: Contents
Contents Fourth Quarter Results Key Initiatives Update Asset Management Update Questions
Slide 15: Asset Management Update
Asset Management Update Total number of non-revenue earning equipment of 8,131 continues to be at recent record lows - the lowest level in 48 months Not yet earning (NYE) vehicles are 1,091 No longer earning (NLE) vehicles are 7,040 3,485 of these units are held for sale at the used truck centers Us
Slide 16: Asset Management Update
Asset Management Update Focused efforts in the area of asset management continues to positively impact earnings and strengthen free cash flow Re-deployments and tractor term extensions are on the rise versus prior year, 3% and 119% respectively Early replacements and early terminations are showing a
Slide 17: Contents
Contents Fourth Quarter Results Key Initiatives Update Asset Management Update Questions
Slide 18: Appendix: Business Segment Detail & Pension Update
Appendix Business Segment Detail & Pension Update
Slide 19: Fleet Management Solutions (FMS) Fourth Quarter
Fleet Management Solutions (FMS) ($ Millions) Fourth Quarter
Slide 20: Fleet Management Solutions (FMS) Full Year
Fleet Management Solutions (FMS) ($ Millions) Full Year
Slide 21: Supply Chain Solutions (SCS) Fourth Quarter
Supply Chain Solutions (SCS) ($ Millions) Fourth Quarter
Slide 22: Supply Chain Solutions (SCS) Full Year
Supply Chain Solutions (SCS) ($ Millions) Full Year
Slide 23: Dedicated Contract Carriage (DCC) Fourth Quarter
Dedicated Contract Carriage (DCC) ($ Millions) Fourth Quarter
Slide 24: Dedicated Contract Carriage (DCC) Full Year
Dedicated Contract Carriage (DCC) ($ Millions) Full Year
Slide 25: Central Support Services (CSS) Fourth Quarter
Central Support Services (CSS) ($ Millions) Fourth Quarter
Slide 26: Central Support Services (CSS) Full Year
Central Support Services (CSS) ($ Millions) Full Year
Slide 27: 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 8,131 Dec 2002 Total 8,691 June 2002 Total
Slide 28: Pension Update
Pension Update The year-to-year change in FVA is impacted by the following: Actual return on plan assets (negative 14% for 2002) Contributions to the plan Payment of plan benefits and expenses PBO (Projected Benefit Obligation) is the present value of expected benefit payments to plan participants (
Slide 29: Pension Update
Pension Update Ryder made $26 million in cash contributions to global pension plans in 2002 Includes voluntary contribution to U.S. pension plan of $16 million in December 2002 Charge to equity in 4Q 2002 of $227.6 million for underfunded status of the company's global plans No cash contribution to
Slide 30: Cityder
Cityder