Slide 1: Fourth Quarter 2013 Earnings & 2014 Forecast Conference Call
Proprietary and Confidential | February 4, 2014 Fourth Quarter 2013 Earnings & 2014 Forecast Conference Call 1 Exhibit 99.2
Slide 2: Safe Harbor and Non-GAAP Financial Measures
Proprietary and Confidential | 2 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 regarding revenue and earnings
Slide 3: Contents
Proprietary and Confidential | 3 Contents ►Fourth Quarter 2013 Results Overview ►Asset Management Update ►2014 Forecast ►Q & A
Slide 4: 4th Quarter Results Overview
Proprietary and Confidential | 4 4th Quarter Results Overview ► Comparable earnings per share from continuing operations were $1.35 vs. $1.26 in 4Q12 ► Earnings per diluted share from continuing operations were $1.24 in 4Q13 vs. $1.07 in 4Q12 – 4Q13 included a $0.11 charge from non-operating pension
Slide 5: Key Financial Statistics Fourth Quarter
Proprietary and Confidential | 5 Key Financial Statistics Fourth Quarter ($ Millions, Except Per Share Amounts) 2013 2012 % B/(W) Operating Revenue 1,344.7$ 1,287.6$ 4% Fuel Services and Subcontracted Transportation Revenue 273.0 296.0 (8)% Total Revenue 1,617.7$ 1,583.5$ 2% Earnings Per Share from
Slide 6: Key Financial Statistics Full Year
Proprietary and Confidential | 6 Key Financial Statistics Full Year ($ Millions, Except Per Share Amounts) 2013 2012 % B/(W) Operating Revenue 5,270.5$ 5,066.3$ 4% Fuel Services and Subcontracted Transportation Revenue 1,148.8 1,190.6 (4)% Total Revenue 6,419.3$ 6,257.0$ 3% Earnings Per Share from C
Slide 7: 4th Quarter Results Overview – FMS
Proprietary and Confidential | 7 4th Quarter Results Overview – FMS ► Fleet Management Solutions (FMS) operating revenue up 3% and total revenue up 2% vs. prior year – Full service lease revenue up 3% – Contract maintenance revenue down 8% – Contract-related maintenance up 1% – Commercial rental rev
Slide 8: 4th Quarter Results Overview – SCS
Proprietary and Confidential | 8 4th Quarter Results Overview – SCS ► Supply Chain Solutions (SCS) operating revenue up 8% and total revenue up 4% vs. prior year due to new business and higher volumes – Dedicated operating revenue increased 7% vs. prior year due to new sales ► SCS earnings were high
Slide 9: Business Segments – Fourth Quarter
Proprietary and Confidential | 9 Business Segments 2013 2012 % B/(W) 2013 2012 % B/(W) Operating Revenue: Fleet Management Solutions 875.7$ 849.5$ 3% 1,135.5$ 1,117.7$ 2% Supply Chain Solutions 525.9 489.1 8% 598.7 575.3 4% Eliminations (56.9) (51.0) (12)% (116.4) (109.4) (6)% Total 1,344.7$ 1,287.6
Slide 10: Business Segments – Full Year
Proprietary and Confidential | Business Segments 2013 2012 % B/(W) 2013 2012 % B/(W) Operating Revenue: Fleet Management Solutions 3,424.5$ 3,321.2$ 3% 4,494.7$ 4,405.3$ 2% Supply Chain Solutions 2,063.9 1,944.5 6% 2,383.1 2,280.6 4% Eliminations (217.8) (199.3) (9)% (458.5) (428.9) (7)% Total 5,270
Slide 11: Capital Expenditures
Proprietary and Confidential | Capital Expenditures 2013 $ 2013 2012 O/(U) 2012 Full Service Lease 1,823$ 1,548$ 275$ Commercial Rental 275 542 (267) Operating Property and Equipment 86 70 16 Gross Capital Expenditures 2,184 2,161 23 Less: Proceeds from Sales (Primarily Revenue Earning Equipment) 45
Slide 12: Cash Flow from Continuing Operations
Proprietary and Confidential | Cash Flow from Continuing Operations 2013 2012 Earnings from Continuing Operations 243$ 201$ Depreciation 957 940 Gains on Vehicle Sales, Net (96) (89) Amortization and Other Non-Cash Charges, Net 76 68 Pension Contributions (95) (81) Changes in Working Capital and Def
Slide 13: Debt to Equity Ratio
Proprietary and Confidential | 275% 234% 201% 146% 129% 151% 168% 157% 225% 183% 203% 261% 270% 226% 250% 0% 50% 100% 150% 200% 250% 300% 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 12/31/12 12/31/13 Long Term Target Midpoint Total Obli
Slide 14: Contents
Proprietary and Confidential | Contents ►Fourth Quarter 2013 Results Overview ►Asset Management Update ►2014 Forecast ►Q & A 14
Slide 15: Global Asset Management Update
Proprietary and Confidential | ► Units held for sale were 7,900 at quarter end, down from 9,200 units held for sale in the prior year ─ Sequentially from the third quarter, units held for sale decreased by 300 units ► The number of used vehicles sold in the fourth quarter was 5,700, up 6% from the p
Slide 16: Contents
Proprietary and Confidential | Contents ►Fourth Quarter 2013 Results Overview ►Asset Management Update ►2014 Forecast ►Q & A 16
Slide 17: 2014 Forecast Assumptions
Proprietary and Confidential | 2014 Forecast Assumptions General ► Moderate growth economic environment ► Moderately higher interest rates on new financing; however, Ryder’s average rate declines FMS ► Growth in Full Service Lease fleet resulting from improved new sales ► Reduced lease capital spend
Slide 18: 2014 Forecast Assumptions SCS and Other
Proprietary and Confidential | 2014 Forecast Assumptions SCS ► Revenue growth due to new business and improved business retention ► Customer volumes projected to modestly increase ► Margin improvement driven by net new business and higher volumes Other ► Restart of anti-dilutive share repurchase pla
Slide 19: 2014 Forecast Key Financial Statistics
Proprietary and Confidential | 2013 % B / (W) Revenue: Operating Revenue $ 5,570 5,270$ 6% Fuel Services and Subcontracted Transportation 1,190 1,149 4% Total Revenue $ 6,760 6,419$ 5% Earnings From Continuing Operations: Earnings Before Income Taxes $ 425 - 437 369$ 15 - 18% Earnings $ 274 - 282 24
Slide 20: Business Segment Revenue
Proprietary and Confidential | Business Segment Revenue Fleet Management Solutions: Total Revenue (1) 7% Operating Revenue 6% Full Service Lease Revenue 5% Commercial Rental Revenue 7% Supply Chain Solutions: Total Revenue (2) 3% Operating Revenue 5% 2014 Forecast Change % vs. 2013 (1) Includes fuel
Slide 21: 2014 Causes of EPS Change
Proprietary and Confidential | 2014 Causes of EPS Change ($ Earnings Per Share) 21 Note: Represents Comparable EPS from Continuing Operations (0.08) $4.88 0.11 0.11 - 0.13 0.16-0.18 0.24-0.27 0.29-0.33 $5.30 – $5.45 (0.16-0.20) (0.12) (0.09) 2013 Strategic Investments & Other Compensation Share Coun
Slide 22: Capital Expenditures, Cash Flow & Leverage
Proprietary and Confidential | Capital Expenditures, Cash Flow & Leverage 2014 Forecast 2013 Full Service Lease - Replacement $ 1,120 Full Service Lease - Growth 580 Full Service Lease 1,700 1,823$ Commercial Rental 330 275 Operating Property and Equipment 130 86 Gross Capital Expenditures 2,160 2,1
Slide 23: Growth Capital Expenditures and Free Cash Flow
Proprietary and Confidential | Growth Capital Expenditures 23 Free Cash Flow 380 341 614 258 (257) (384) (386) (300) ($ Millions) 2014 229 263 382 556 580 180 460 184 177 120 0.0 0.5 1.0 2007 2008 2009 2010 2011 2012 2013 2014 Forecast 2007 2008 2009 2010 2011 2012 2014 Forecast 20 0 229 0 180 723 5
Slide 24: EPS Forecast – Continuing Operations
Proprietary and Confidential | EPS Forecast – Continuing Operations 2014 Comparable EPS Forecast(1) $ 0.83 - 0.88 $ 5.30 - 5.45 2013 Comparable EPS(2) $ 0.81 $ 4.88 First Quarter Full Year ($ Earnings Per Share) (1) 2014 Comparable EPS Forecast, a non-GAAP financial measure, excludes from EPS foreca
Slide 25: Q&A
Proprietary and Confidential | Q&A 25
Slide 26: Appendix
Proprietary and Confidential | Appendix Full Service Lease Vehicle Count Business Segment Detail Central Support Services Balance Sheet Financial Indicators Forecast Adjusted Return on Capital History Asset Management Non-GAAP Financial Measures & Reconciliations 26
Slide 27: Full Service Lease (FSL) Fleet Count
Proprietary and Confidential | End of Period 4Q12 1Q13 2Q13 3Q13 4Q13 FSL Fleet (as reported) 122,400 121,700 120,300 120,800 122,900 500 UK FSL Trailers 6,200 6,000 5,400 5,100 5,000 (1,200) FSL Fleet - excluding UK 116,200 115,700 114,900 115,700 117,900 1,700 Sequential Change 1Q13 O/(U) 4Q12 2Q1
Slide 28: Fleet Management Solutions (FMS) – Fourth Quarter
Proprietary and Confidential | Fleet Management Solutions (FMS) 2013 2012 % B/(W) Full Service Lease 555.4$ 536.7$ 3% Contract Maintenance 43.3 46.9 (8)% Contractual Revenue 598.8 583.7 3% Contract-related Maintenance 50.0 49.3 1% Commercial Rental 209.2 197.4 6% Other 17.8 19.1 (7)% Operating Reven
Slide 29: Fleet Management Solutions (FMS) – Full Year
Proprietary and Confidential | Fleet Management Solutions (FMS) 2013 2012 % B/(W) 4 Full Service Lease 2,177.4$ 2,102.2$ 4% Contract Maintenance 180.3 187.2 (4)% Contractual Revenue 2,357.7 2,289.4 3% Contract-related Maintenance 205.3 187.0 10% Commercial Rental 789.5 772.8 2% Other 72.0 72.0 - Ope
Slide 30: Supply Chain Solutions (SCS) – Fourth Quarter
Proprietary and Confidential | Supply Chain Solutions (SCS) 2013 2012 % B/(W) Automotive 139.8$ 141.7$ (1)% High-Tech 87.3 81.7 7% Retail & CPG 189.9 176.7 7% Industrial & Other 108.9 89.0 22% Operating Revenue 525.9 489.1 8% Subcontracted Transportation 72.8 86.1 (15)% Total Revenue 598.7$ 575.3$ 4
Slide 31: Supply Chain Solutions (SCS) – Full Year
Proprietary and Confidential | Supply Chain Solutions (SCS) 2013 2012 % B/(W) Automotive 573.4$ 563.5$ 2% High-Tech 332.6 317.5 5% Retail & CPG 737.1 711.2 4% Industrial & Other 420.8 352.4 19% Operating Revenue 2,063.9 1,944.5 6% Subcontracted Transportation 319.2 336.1 (5)% Total Revenue 2,383.1$
Slide 32: SCS Earnings Before Tax 2013 Restatement
Proprietary and Confidential | ($ in Millions) 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 EBT Previously reported 23.8$ 32.7$ 38.5$ ― ― Restated 1Q - 3Q 24.4$ 33.0$ 39.6$ 32.9$ 130.0$ EBT as a % of Total Revenue Previously reported 4.1% 5.5% 6.3% ― ― Restated 1Q - 3Q 4.2% 5.5% 6.5% 5.4% 5.4% EBT as a %
Slide 33: Central Support Services (CSS) – Fourth Quarter
Proprietary and Confidential | Central Support Services (CSS) 2013 2012 % B/(W) Allocated CSS Costs 42.2$ 38.2$ (10)% Unallocated CSS Costs 13.5 10.5 (29) Total CSS Costs 55.7$ 48.7$ (14)% Fourth Quarter ($ Millions) 33
Slide 34: Central Support Services (CSS) – Full Year
Proprietary and Confidential | Central Support Services (CSS) 2013 2012 % B/(W) Allocated CSS Costs 164.8$ 151.7$ (9)% Unallocated CSS Costs 45.5 42.3 (7) Total CSS Costs 210.3$ 194.0$ (8)% Full Year ($ Millions) 34
Slide 35: Balance Sheet
Proprietary and Confidential | Balance Sheet December 31, December 31, 2013 2012 Cash and Cash Equivalents 62$ 66$ Other Current Assets 1,001 974 Revenue Earning Equipment, Net 6,491 5,755 Operating Property and Equipment, Net 634 625 Other Assets 916 899 Total Assets 9,104$ 8,319$ Short-Term Debt /
Slide 36: Adjusted Return on Capital History
Proprietary and Confidential | Adjusted Return on Capital History Adjusted Return on Capital (ROC) 6.8% 6.7% 6.6% 6.5% 6.3% 6.1% 5.5% 4.8% 4.7% 4.8% 7.8% 7.9% 7.4% 7.3% 4.1% 4.8% 5.7% 5.6% 5.7% 5.7% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Forecast Cost of Capital (COC) Return on Equity 14.
Slide 37: Financial Indicators
Proprietary and Confidential | 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013 Forecast Midpoint Long Term Target Midpoint Financial Indicators Forecast (1) (1) Total Obligations to Equity includes acquisitions. Free Cash Flow and Gross Capital Expenditures exclude acquisi
Slide 38: Lease Redeployments, Extensions and Early Terminations
Proprietary and Confidential | Number of Units (a) U.S. only (b) Externally Reported. Redeployments Includes Rental to lease & excludes Lease to Rental (c) Excludes early terminations where customer purchases vehicle 4,103 4,243 4,793 3,824 5,168 4,698 4,363 7,537 6,096 4,698 9,060 3,636 4,190 7,784
Slide 39: Non-GAAP Financial Measures
Proprietary and Confidential | 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 sho
Slide 40: Earnings and EPS from Continuing Operations Reconciliation
Proprietary and Confidential | Earnings and EPS from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) (1) The company uses Comparable Earnings and Comparable Earnings per Share (EPS) from Continuing Operations, both non-GAAP financial measures, which provide useful informati
Slide 41: EBT and Tax Rate from Continuing Operations Reconciliation
Proprietary and Confidential | 4Q13 - 4Q13 - 4Q13 - FY13 - FY13 - FY13 - EBT Tax Tax Rate EBT Tax Tax Rate Reported 97.6$ 31.7$ 32.5% 368.9$ 125.7$ 34.1% Non-operating Pension Costs 9.0 3.6 24.3 10.0 Pension settlement charge 1.6 0.6 2.8 1.1 Superstorm Sandy vehicle-related gain - - (0.6) (0.2) Rest
Slide 42: Adjusted Return on Capital Reconciliation 2004-2009
Proprietary and Confidential | 2004 2005 2006 2007 2008 2009 Net earnings (1) 216$ 227$ 249$ 254$ 200$ 62$ Cumulative effect of change in accounting principle - 2 - - - - Restructuring and other charges, net and other items (24) (2) - 1 70 30 Income taxes 115 129 144 152 150 54 Adjusted earnings bef
Slide 43: Adjusted Return on Capital Reconciliation 2010-2013
Proprietary and Confidential | Adjusted Return on Capital Reconciliation 2010 2011 2012 2013 Net Earnings (1) 118$ 170$ 210$ 238$ Restructuring and Other Charges, Net and Other Items 6 6 17 - Income Taxes 61 108 91 126 Adjusted Earnings Before Income Taxes 185 284 318 363 Adjusted Interest Expense (
Slide 44: Adjusted Return on Capital Reconciliation by Segment
Proprietary and Confidential | ($ Millions) Adjusted Return on Capital Reconciliation FMS SCS FMS SCS Net Earnings (1) 203$ 70$ 227$ 80$ Restructuring and Other Charges, Net and Other Items (27) - (19) - Income Taxes 105 45 117 50 Adjusted Earnings Before Income Taxes 281 115 325 130 Adjusted Intere
Slide 45: Debt to Equity Reconciliation
Proprietary and Confidential | Debt to Equity Reconciliation % 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% $1,7
Slide 46: Debt to Equity Reconciliation
Proprietary and Confidential | Debt to Equity Reconciliation ($ Millions) Note: Amounts may not recalculate due to rounding. % 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 12/31/2013 Equity Balance Sheet Debt $2,863 213% $2,498
Slide 47: Free Cash Flow Reconciliation
Proprietary and Confidential | ($ 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) 235 1
Slide 48: Cash Flow Reconciliation
Proprietary and Confidential | Cash Flow Reconciliation 12/31/10 12/31/11 12/31/12 12/31/13 Cash Provided by Operating Activities from Continuing Operations 1,028$ 1,042$ 1,134$ 1,223$ Proceeds from Sales (Primarily Revenue Earning Equipment) 235 300 413 452 Proceeds from Sale and Leaseback of Asset
Slide 49: Proprietary and Confidential |
Proprietary and Confidential |