Slide 1: Third Quarter 2003 Earnings Conference Call
Third Quarter 2003 Earnings Conference Call October 22, 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 Third Quarter Results Key Initiatives Update Asset Management Update Earnings Outlook Pension Update Q & A
Slide 4: 3rd Quarter Results
3rd Quarter Results Earnings per diluted share before the cumulative effect of an accounting change were $0.63, up from $0.54 in 3Q02 Includes $0.02 benefit from net restructuring recoveries Lease revenue slightly down year-over-year; demand remains slow Continuing year-over-year improvement in comm
Slide 5: 3rd Quarter Results (continued)
3rd Quarter Results (continued) Dedicated Contract Carriage returns down from prior year due to higher insurance costs and lower revenue Total and U.S. Supply Chain Solutions revenue down due to volume reductions and non-renewal of certain contracts Revenue increases realized in Canada, Latin Americ
Slide 6: Earnings Per Share Third Quarter Actual Results
Earnings Per Share Third Quarter Actual Results
Slide 7: Earnings Per Share Year-To-Date Actual Results
Earnings Per Share Year-To-Date Actual Results
Slide 8: Business Segment Third Quarter Fully Allocated
Business Segment Third Quarter Fully Allocated ($ Millions) (1) Allocation of Recoveries, Net across business segments was as follows: FMS $2.4 in 2003 and $0.5 in 2002; CSS - $(0.6) in 2003 and $0.2 in 2002; SCS - $0.4 in 2003 and $0.1 in 2002; DCC - $0.5 in 2003
Slide 9: Business Segment Year-To-Date Fully Allocated
Business Segment Year-To-Date Fully Allocated ($ Millions) (1) Allocation of Recoveries, Net across business segments was as follows: FMS - $3.2 in 2003 and $0.5 in 2002; CSS - $(0.4) in 2003 and $1.4 in 2002; SCS - $0.4 in 2003 and $0.1 in 2002; DCC - $0.5 in 2003
Slide 10: Capital Expenditures Year-To-Date
Capital Expenditures ($ Millions) Year-To-Date Full Service Lease Commercial Rental Property, Plant & Equipment Acquisitions Other East 57 37 5 0 1 Year-To-Date 2003
Slide 11: Debt to Equity Ratio
Debt to Equity Ratio Continued and focused emphasis to strengthen the balance sheet ($ Millions) Notes: - 4Q2002 and beyond includes impact of a pension related equity charge of $227.6 million. - 3Q2003 includes impact of consolidating variable interest entities previously disclosed as off-balance s
Slide 12: Free Cash Flow
Free Cash Flow (1) Includes non-cash restructuring and other recoveries, net and cumulative effect of changes in accounting principles (2) Changes in working capital exclude sale of receivables (3) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures ($ Millions) Year-To-Date
Slide 13: Contents
Contents Third Quarter Results Key Initiatives Update Asset Management Update Earnings Outlook Pension Update Q & A
Slide 14: 2003 Key Initiatives
2003 Key Initiatives Focus on cost management and process improvement initiatives continues 2003 new initiatives added an incremental $31 million in pre-tax earnings Maintenance Asset Management Overhead Reduction SCS Margin Improvement Insurance and Safety Other $44 - $49 million 2003 Impact of Imp
Slide 15: Contents
Contents Third Quarter Results Key Initiatives Update Asset Management Update Earnings Outlook Pension Update Q & A
Slide 16: Asset Management Update
Asset Management Update Total number of non-revenue earning vehicles of 7,200 is down 1,233 units or 15% vs. prior year period Not yet earning (NYE) vehicles are 548 No longer earning (NLE) vehicles are 6,652 3,512 of these units are held for sale at the used truck centers Used tractor retail sales
Slide 17: Asset Management Update
Asset Management Update Focused efforts in the area of asset management continue to positively impact earnings and strengthen free cash flow Redeployments have declined 14% and total extensions have declined 20%; however, both continue to be ahead of plan Note: U.S. only Redeployments Total Extensio
Slide 18: Contents
Contents Third Quarter Results Key Initiatives Update Asset Management Update Earnings Outlook Pension Update Q & A
Slide 19: Earnings Outlook
Earnings Outlook Revising full year 2003 forecasted earnings to $2.04 - $2.08 per share. Current projection for EPS is as follows: ($ Earnings Per Share) Year-to-Date(1) 4th Qtr Full Year 2003 Actual/Proj. EPS 1.51 0.53-0.57 2.04-2.08 (1) Excludes cumulative effect of changes in accounting principle
Slide 20: Contents
Contents First Quarter Results Key Initiatives Update Asset Management Update Earnings Outlook Pension Update Q & A
Slide 21: Pension Update
Pension Update Ryder made $50M contribution to U.S. pension plan in October 2003 Analysis indicated positive economic benefit to optional contribution in 2003 Present value of estimated required contributions over the next 5 years totals $135M to U.S. plan and $205M globally (assuming expected long-
Slide 22: Q & A
Q & A
Slide 23: Appendix
Appendix Business Segment Detail Non-Revenue Earning Equipment FIN 46 - Balance Sheet Detail Non-GAAP Financial Measures
Slide 24: Fleet Management Solutions (FMS) Third Quarter
Fleet Management Solutions (FMS) ($ Millions) Third 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 25: Fleet Management Solutions (FMS) Year-To-Date
Fleet Management Solutions (FMS) ($ Millions) Year-To-Date (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 market
Slide 26: Supply Chain Solutions (SCS) Third Quarter
Supply Chain Solutions (SCS) ($ Millions) Third Quarter (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the SCS business segment and as a measure of sales activity. FUM expense is deducted from total revenue to arrive at operating revenu
Slide 27: Supply Chain Solutions (SCS) Year-To-Date
Supply Chain Solutions (SCS) ($ Millions) Year-To-Date (a) The Company uses operating revenue, a non-GAAP financial measure, to evaluate the operating performance of the SCS business segment and as a measure of sales activity. FUM expense is deducted from total revenue to arrive at operating revenue
Slide 28: Dedicated Contract Carriage (DCC) Third Quarter
Dedicated Contract Carriage (DCC) ($ Millions) Third 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 29: Dedicated Contract Carriage (DCC) Year-To-Date
Dedicated Contract Carriage (DCC) ($ Millions) Year-To-Date (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 re
Slide 30: Central Support Services (CSS) Third Quarter
Central Support Services (CSS) ($ Millions) Third Quarter
Slide 31: Central Support Services (CSS) Year-To-Date
Central Support Services (CSS) ($ Millions) Year-To-Date
Slide 32: 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 8,838 Mar 2003 Total 8,691 June 2002 Total
Slide 33: FIN 46 - Balance Sheet Detail
FIN 46 - Balance Sheet Detail Balance Sheet Impact of Consolidating VIEs
Slide 34: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ Millions) Year-To-Date 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 import
Slide 35: 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 36: Cityder
Cityder