Slide 1: First Quarter 2004 Earnings Conference Call
First Quarter 2004 Earnings Conference Call April 26, 2004
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, we advise that these forward-looking statements be evaluated with consideration given to the many uncertainti
Slide 3: Contents
Contents First Quarter Results Asset Management Update Earnings Outlook Q & A
Slide 4: 1st Quarter Results
1st Quarter Results Earnings per diluted share were $0.53, up from $0.33 in 1Q03 Includes $0.01 credit for sale of facility not related to operations Fleet Management Solutions dry revenue growth of 4% vs. prior year Lease revenue up year-over-year due to acquisitions Highest lease contract signings
Slide 5: 1st Quarter Results (continued)
1st Quarter Results (continued) Supply Chain Solutions revenue down vs. prior year due to non- renewal of certain contracts and volume reductions; decline smaller than forecast Revenue increases realized in Canada, Latin America and Asia Supply Chain Solutions earnings up slightly year-over-year; im
Slide 6: Earnings Per Share First Quarter Actual Results
Earnings Per Share First Quarter Actual Results
Slide 7: Business Segment First Quarter
Business Segment First Quarter ($ Millions) (1) 2003 net before tax earnings for FMS and DCC restated for change in cost allocations. Refer to Appendix - FMS / DCC Segment NBT Reconciliation. (2) Allocation of Restructuring and Other Recoveries, Net across business segments was as follows: FMS - $0.
Slide 8: Capital Expenditures
Capital Expenditures ($ Millions) First Quarter Full year 2004 forecast for capital expenditures excluding acquisitions anticipates an increase of $489 million or 67% related to both increased vehicle replacements and fleet growth
Slide 9: Debt to Equity Ratio
Debt to Equity Ratio Continued and focused emphasis to strengthen the balance sheet ($ Millions) Notes: - Includes impact of accumulated net pension related equity charge of $187 million in 1Q2004 and 4Q2003, and $229 million in 1Q2003. - 3Q2003 includes impact of consolidating variable interest ent
Slide 10: Free Cash Flow
Free Cash Flow (1) Includes non-cash restructuring and other recoveries, net and cumulative effect of changes in accounting principles (2) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures ($ Millions) First Quarter Preliminary
Slide 11: Contents
Contents First Quarter Results Asset Management Update Earnings Outlook Q & A
Slide 12: Asset Management Update
Asset Management Update Note: U.S. only Used tractor retail sales proceeds continue to show signs of improvement over prior year, up 13% vs prior year period The overall number of vehicles sold was up 27% compared to prior year at 4,087 Total number of non-revenue earning vehicles of 8,648 is down 1
Slide 13: Asset Management Update
Redeployments Extensions Early Terminations Early Replacements 1Q00 1170 365 1650 1561 1Q01 1131 657 1673 474 1Q02 1790 1350 1903 344 1Q03 1322 948 1379 215 1Q04 1356 709 757 211 Asset Management Update Note: U.S. only Focused efforts in the area of asset management continue to positively impact ear
Slide 14: Contents
Contents First Quarter Results Asset Management Update Earnings Outlook Q & A
Slide 15: Earnings Outlook
Earnings Outlook Increasing full year 2004 forecasted earnings by $0.18 to $2.70 - $2.82 per share. Current projection for EPS is as follows: ($ Earnings Per Share) 2nd Quarter Full Year 2004 Projected EPS 0.66 - 0.70 2.70 - 2.82
Slide 16: Q & A
Q & A
Slide 17: Appendix
Appendix Business Segment Detail FMS / DCC Segment NBT Reconciliation Asset Management Update Non-Revenue Earning Equipment Financial Indicators Forecast Non-GAAP Financial Measures & Reconciliations
Slide 18: Fleet Management Solutions (FMS)
Fleet Management Solutions (FMS) ($ Millions) First Quarter (a) The Company uses dry revenue, a non-GAAP financial measure, to evaluate the operating performance of the FMS business segment and as a measure of sales activity. Fuel services revenue, which is directly impacted by fluctuations in marke
Slide 19: Supply Chain Solutions (SCS)
Supply Chain Solutions (SCS) ($ Millions) First Quarter (a) Includes $8.4 million associated with an inventory procurement contract which began in 2003. The terms of this contract were renegotiated in the first quarter of 2004 and will result in net revenue reporting on a prospective basis. (b) The
Slide 20: Dedicated Contract Carriage (DCC)
Dedicated Contract Carriage (DCC) ($ Millions) First Quarter (a) The Company uses operating revenue, a non GAAP financial measure, to evaluate the operating performance of the DCC business segment and as a measure of sales activity. FUM expense is deducted from total revenue to arrive at operating r
Slide 21: Central Support Services (CSS)
Central Support Services (CSS) ($ Millions) First Quarter
Slide 22: FMS / DCC Segment NBT Reconciliation
FMS / DCC Segment NBT Reconciliation ($ Millions) Note: In 2004, the Company changed its methodology of allocating sales support costs between the FMS and DCC segments. Accordingly, 2003 segment NBT measures for these segments have been adjusted to provide the retroactive effect of this change.
Slide 23: 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 Total 8,838 Mar 2003 Total 8,691 June 2002 Total 8,433 Sept 2002 Total 8,131 Dec 2002
Slide 24: Financial Indicators Forecast
Debt to Equity Ratio Actual 1999 Actual 2000 Actual 2001 Actual 2002 Actual 2003 Forecast 2004 (2) Financial Indicators Forecast (1) Free Cash Flow (2) ($ Millions) Actual 1999 Actual 2000 Actual 2001 Actual 2002 Actual 2003 Forecast 2004 1990 1991 1992 1993 1994 1995 1996 1998 Actual 1999 Actual 20
Slide 25: 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 26: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ Millions) First Quarter Preliminary (a) The Company uses free cash flow, a non-GAAP financial measure, because management considers it to be an important measure of comparative operating performance. Management believes free cash flow provides investors with an impor
Slide 27: Debt to Equity Reconciliation
Debt to Equity Reconciliation (a) The Company uses total obligations, a non-GAAP financial measure, which includes certain off-balance sheet financial obligations relating to revenue earning equipment. Management believes this non-GAAP financial measure is useful to investors as it is a more complet
Slide 28: Free Cash Flow Reconciliation Full Year
Free Cash Flow Reconciliation Full Year (1) The Company uses free cash flow, a non-GAAP financial measure, because management considers it to be an important measure of comparative operating performance. Management believes free cash flow provides investors with an important perspective on the cash
Slide 29: Cityder
Cityder