Slide 1: First Quarter 2014 Earnings Conference Call
Proprietary and Confidential | April 23, 2014 First Quarter 2014 Earnings Conference Call Exhibit 99.2 1
Slide 2: Forward-looking statements
Proprietary and Confidential | 2 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 growth, lease fleet growth, performance in
Slide 3: Contents
Proprietary and Confidential | 3 Contents ►First Quarter 2014 Results Overview ►Asset Management Update ►Earnings Forecast ►Q & A
Slide 4: 1st Quarter Results Overview
Proprietary and Confidential | 4 1st Quarter Results Overview ► Comparable earnings per share from continuing operations were $0.92 vs. $0.81 in 1Q13 ► Earnings per diluted share from continuing operations were $0.92 in 1Q14 vs. $0.79 in 1Q13 – 1Q14 included non-operating pension costs of $0.03, whi
Slide 5: Key Financial Statistics
Proprietary and Confidential | 5 Key Financial Statistics First Quarter ($ Millions, Except Per Share Amounts) Operating Revenue Fuel Services and Subcontracted Transportation Revenue Total Revenue Earnings Per Share from Continuing Operations Comparable Earnings Per Share from Continuing Operations
Slide 6: 1st Quarter Results Overview – FMS
Proprietary and Confidential | 6 1st Quarter Results Overview – FMS ► Fleet Management Solutions (FMS) operating revenue up 4% and total revenue up 3% vs. prior year – Full service lease revenue up 4% – Contract maintenance revenue down 5% – Contract-related maintenance revenue up 5% – Commercial re
Slide 7: 1st Quarter Results Overview – SCS
Proprietary and Confidential | 7 1st Quarter Results Overview – SCS ► Supply Chain Solutions (SCS) operating revenue up 5% 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 lowe
Slide 8: Business Segments
Proprietary and Confidential | 8 Business Segments 2014 2013 Operating Revenue: Fleet Management Solutions 860.0$ 824.0$ Supply Chain Solutions 520.4 494.8 Eliminations (57.9) (51.3) Total 1,322.5$ 1,267.5$ Segment Earnings Before Tax: (1) Fleet Management Solutions 77.0$ 60.7$ Supply Chain Solution
Slide 9: Capital Expenditures
Proprietary and Confidential | Capital Expenditures Full Service Lease Commercial Rental Operating Property and Equipment Gross Capital Expenditures 2014 $ 2014 2013 O/(U) 2013 446$ 381$ 65$ 125 47 79 24 22 2 596 449 146 Less: Proceeds from Sales (Primarily Revenue Earning Equipment) 128 113 14 Net
Slide 10: Cash Flow from Continuing Operations
Proprietary and Confidential | Cash Flow from Continuing Operations 2014 2013 Earnings from Continuing Operations 49$ 41$ Depreciation 249 232 Gains on Vehicle Sales, Net (29) (23) Amortization and Other Non-Cash Charges, Net 19 18 Pension Contributions (4) (4) Changes in Working Capital and Deferre
Slide 11: Debt to Equity Ratio
Proprietary and Confidential | Debt to Equity Ratio 3/31/2014 12/31/2013 3/31/2013 Balance Sheet Debt 4,447$ 4,189$ 3,846$ Percent To Equity 234% 221% 258% Total Obligations 4,542$ 4,284$ 3,990$ Percent To Equity 239% 226% 268% Total Equity (3) 1,899$ 1,897$ 1,491$ Balance 213% 175% 196% 257% 260% 2
Slide 12: Contents
Proprietary and Confidential | Contents ►First Quarter 2014 Results Overview ►Asset Management Update ►Earnings Forecast ►Q & A 12
Slide 13: Global Asset Management Update
Proprietary and Confidential | ► Units held for sale were 7,200 at quarter end, down from 10,000 units held for sale in the prior year ─ Sequentially from the fourth quarter, units held for sale decreased by 700 units ► The number of used vehicles sold in the first quarter was 5,600, down 3% from th
Slide 14: Contents
Proprietary and Confidential | Contents ►First Quarter 2014 Results Overview ►Asset Management Update ►Earnings Forecast ►Q & A 14
Slide 15: EPS Forecast – Continuing Operations
Proprietary and Confidential | EPS Forecast – Continuing Operations Second Quarter Full Year 2014 Comparable EPS Forecast(1) $ 1.35 - 1.40 $ 5.40 - 5.55 2013 Comparable EPS (2) $ 1.25 $ 4.88 ($ Earnings Per Share) (1) 2014 Comparable EPS Forecast, a non-GAAP financial measure, excludes from EPS fore
Slide 16: Q&A
Proprietary and Confidential | Q&A 16
Slide 17: Appendix
Proprietary and Confidential | Appendix Full Service Lease Vehicle Count Business Segment Detail Central Support Services Balance Sheet Financial Indicators Forecast Asset Management Non-GAAP Financial Measures & Reconciliations 17
Slide 18: Full Service Lease Fleet Count
Proprietary and Confidential | End of Period 1Q13 2Q13 3Q13 4Q13 1Q14 FSL Fleet (as reported) 121,700 120,300 120,800 122,900 123,300 1,600 UK FSL Trailers 6,000 5,400 5,100 5,000 4,800 (1,200) FSL Fleet - excluding UK 115,700 114,900 115,700 117,900 118,500 2,800 Sequential Change 2Q13 O/(U) 1Q13 3
Slide 19: Fleet Management Solutions (FMS)
Proprietary and Confidential | Fleet Management Solutions (FMS) Full Service Lease Contract Maintenance Contractual Revenue Commercial Rental Contract-related Maintenance Other Operating Revenue Fuel Services Revenue Total Revenue Segment Earnings Before Tax (EBT) Segment EBT as % of Total Revenue S
Slide 20: Supply Chain Solutions (SCS)
Proprietary and Confidential | Supply Chain Solutions (SCS) 2014 2013 % B/(W) Automotive 144.6$ 148.6$ (3)% High-Tech 81.5 77.8 5% Retail & CPG 183.3 175.8 4% Industrial & Other 111.1 92.6 20% Operating Revenue 520.4 494.8 5% Subcontracted Transportation 76.9 81.6 (6)% Total Revenue 597.3$ 576.5$ 4%
Slide 21: Central Support Services (CSS)
Proprietary and Confidential | Central Support Services (CSS) 2014 2013 % B/(W) Allocated CSS Costs (1) 47.9$ 43.2$ (11)% Unallocated CSS Costs 10.8 11.4 5% Total CSS Costs (1) 58.7$ 54.6$ (8) First Quarter ($ Millions) 21 (1) Includes the reclassification of $2.4 million in 2013 to CSS in order to
Slide 22: Balance Sheet
Proprietary and Confidential | Balance Sheet Cash and Cash Equivalents Other Current Assets Revenue Earning Equipment, Net Operating Property and Equipment, Net Other Assets Total Assets Short-Term Debt / Current Portion Long-Term Debt Other Current Liabilities Long-Term Debt Other Non-Current Liabi
Slide 23: Financial Indicators Forecast
Proprietary and Confidential | 2008 2009 2010 2011 2012 2013 2013 Forecast Midpoint Long Term Target Midpoint Financial Indicators Forecast (1) (1) Total Obligations to Equity includes acquisitions. Free Cash Flow and Gross Capital Expenditures exclude acquisitions. (2) Illustrates impact of accumul
Slide 24: Full service lease redeployments, extensions and early terminations
Proprietary and Confidential | 1,061 1,210 1,269 896 1,521 1,684 1,485 2,088 1,334 1,147 1,701 889 742 1,855 572 1,001 1,512 787 727 1,384 649 0 500 1,000 1,500 2,000 2,500 Redeployments Extensions Early Terminations N u m b e r o f U n i t s 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 (a) U.S. only (b) Curr
Slide 25: Non-GAAP Financial Measures
Proprietary and Confidential | Non-GAAP Financial Measures ► This presentation includes “non-GAAP financial measures” as defined by SEC rules. As required by SEC rules, we provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure. Non-GAAP financial measures sho
Slide 26: Earnings and Tax Rate from Continuing Operations Reconciliation
Proprietary and Confidential | Earnings and Tax Rate from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) (1) The company uses Comparable Earnings, Comparable Earnings per Share (EPS). Comparable Earnings Before Income Tax (EBT) and Comparable Tax Rate, all from Continuing
Slide 27: Adjusted Return on Capital Reconciliation
Proprietary and Confidential | ($ Millions) (1) Earnings calculated based on a 12-month rolling period. (2) Interest expense includes interest for on and off-balance sheet vehicle obligations. (3) Income taxes were calculated by excluding taxes related to comparable earnings items and interest expen
Slide 28: 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 % 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 3/31/2014 Equity 3/31/2013
Slide 29: Cash Flow Reconciliation
Proprietary and Confidential | Cash Flow Reconciliation ($ Millions) (1) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment. (2) Free Cash Flow excludes acquisitions and changes in restricted cash. 29 12/31/08 12/31/09 12/31/10 12/31/1
Slide 30: Proprietary and Confidential |
Proprietary and Confidential |