Ryder System, Inc. · NYSE:R

Ryder System — Q1 2012 Earnings Presentation

45 slides from Ryder System's earnings presentation, Apr 24, 2012

  1. Slide 1: First Quarter 2012 Earnings Conference Call

    First Quarter 2012 Earnings Conference Call April 24, 2012

  2. Slide 2: Safe Harbor and Non-GAAP Financial Measures

    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. Accordingly, these forward-looking statements should be evaluated with consideration given

  3. Slide 3: Contents

    Contents ► First Quarter 2012 Results Overview ► Asset Management Update ► Earnings Outlook ►Q & A 4/24/2012 © 2012 Ryder System, Inc. All rights reserved. 3

  4. Slide 4: 1st Quarter Results Overview

    1st Quarter Results Overview ► Earnings per diluted share from continuing operations were $0.68 in 1Q12 vs. $0.50 in 1Q11 – 1Q12 included a $0.09 net benefit related to the resolution of a tax matter, partially offset by acquisition-related restructuring costs – 1Q11 included a $0.01 charge for acqu

  5. Slide 5: Key Financial Statistics

    Key Financial Statistics ($ Millions, Except Per Share Amounts) First Quarter 2012 2011 % B/(W) Operating Revenue $ 1,228.9 $ 1,129.1 9% Fuel Services and Subcontracted Transportation Revenue 307.4 296.3 4% Total Revenue $ 1,536.3 $ 1,425.4 8% Earnings Per Share From Continuing Operations $ 0.68 $ 0

  6. Slide 6: 1st Quarter Results Overview - FMS

    1st Quarter Results Overview - FMS ► Fleet Management Solutions (FMS) total revenue up 9% (and operating revenue up 10%) vs. prior year – Contractual revenue up 6% – Full service lease revenue up 6% – Contract maintenance revenue increased 5% – Commercial rental revenue up 26% – Fuel revenue up 7% d

  7. Slide 7: 1st Quarter Results Overview – SCS (including DCC)

    1st Quarter Results Overview – SCS (including DCC) ► Supply Chain Solutions (SCS) total revenue up 7% (and operating revenue up 7%) vs. prior year due to higher overall freight volumes and new business, as well as a prior year acquisition ► SCS earnings before tax (EBT) up 8% – SCS EBT percent of op

  8. Slide 8: Business Segments

    Business Segments ($ Millions) First Quarter Memo: Total Revenue 2012 2011 % B/(W) 2012 2011 % B/(W) Operating Revenue: Fleet Management Solutions $ 792.7 $ 719.0 10% $ 1,071.4 $ 980.1 9% (1) Supply Chain Solutions 484.6 452.7 7% 571.9 535.8 7% Eliminations (48.4) (42.6) (14)% (107.0) (90.5) (18)% T

  9. Slide 9: Capital Expenditures

    Capital Expenditures ($ Millions) First Quarter 2012 $ 2012 2011 O/(U) 2011 Full Service Lease $ 436 $ 112 $ 324 Commercial Rental 335 317 18 Operating Property and Equipment 16 18 (2) Gross Capital Expenditures 787 448 339 Less: Proceeds from Sales (Primarily Revenue Earning Equipment) 94 71 23 Net

  10. Slide 10: Cash Flow from Continuing Operations

    Cash Flow from Continuing Operations ($ Millions) First Quarter 2012 2011 Earnings from Continuing Operations $ 35 $ 26 Depreciation 227 206 Gains on Vehicle Sales, Net (22) (12) Amortization and Other Non-Cash Charges, Net 14 12 Pension Contributions (4) (4) Changes in Working Capital and Deferred

  11. Slide 11: Debt to Equity Ratio

    Debt to Equity Ratio ($ Millions) Total Obligations to Equity Balance Sheet Debt to Equity 300% 275% 267% 275% 261% 250% 234% 225% 201% 183% 203% 200% 168% 146% 151% 157% 150% 129% 100% 50% 0% 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. Slide 12: Contents

    Contents ► First Quarter 2012 Results Overview ► Asset Management Update ► Earnings Outlook ►Q &A 4/24/2012 © 2012 Ryder System, Inc. All rights reserved. 12

  13. Slide 13: Global Asset Management Update

    (1) Global Asset Management Update ► Units held for sale were 8,700 at quarter end, up from 5,000 units held for sale in the prior year – Average units held for sale were 7,400 during the quarter, up from 5,200 in the prior year ► The number of used vehicles sold in the first quarter were 5,000, up

  14. Slide 14: Contents

    Contents ► First Quarter 2012 Results Overview ► Asset Management Update ► Earnings Forecast ►Q & A 4/24/2012 © 2012 Ryder System, Inc. All rights reserved. 14

  15. Slide 15: EPS Forecast – Continuing Operations

    EPS Forecast – Continuing Operations ($ Earnings Per Share) ► Raising full year EPS forecast from $4.00 - $4.10 to $4.02 - $4.12 ► Current forecast is as follows: Second Quarter Full Year 2012 Comparable EPS Forecast(1) $ 1.07 - 1.12 $ 4.02 - 4.12 2011 Comparable EPS $0.92 $3.49 (1) Full Year 2012 C

  16. Slide 16: Q&A

    Q&A 4/24/2012 © 2012 Ryder System, Inc. All rights reserved. 16

  17. Slide 17: Appendix

    Appendix Business Segment Detail Central Support Services Balance Sheet Asset Management Financial Indicators Forecast New Business Segment Presentation (2009 – 2011) New SCS Segment Presentation (2009 – 2011) Revenue and EBT (10 year history) Non-GAAP Financial Measures & Reconciliations 4/24/2012

  18. Slide 18: Fleet Management Solutions (FMS)

    Fleet Management Solutions (FMS) ($ Millions) First Quarter 2012 2011 % B/(W) Full Service Lease $ 510.6 $ 483.3 6% Contract Maintenance 39.9 38.1 5% Contractual Revenue 550.5 521.4 6% Contract-related Maintenance 53.6 44.7 20% Commercial Rental 171.2 135.7 26% Other 17.4 17.3 1% Operating Revenue 7

  19. Slide 19: Supply Chain Solutions (SCS)

    Supply Chain Solutions (SCS) (1) ($ Millions) First Quarter 2012 2011 % B/(W) Automotive $ 139.7 $ 122.7 14% High-Tech 80.3 80.4 - Retail & CPG 178.8 167.1 7% Industrial & Other 85.8 82.5 4% Operating Revenue 484.6 452.7 7% Subcontracted Transportation 87.3 83.1 5% Total Revenue $ 571.9 $ 535.8 7% S

  20. Slide 20: Central Support Services (CSS)

    Central Support Services (CSS) ($ Millions) First Quarter 2012 2011 % B/(W) Allocated CSS Costs $ 38.7 $ 36.6 (6)% Unallocated CSS Costs 9.5 8.7 (9)% Total CSS Costs $ 48.2 $ 45.3 (6)% 4/24/2012 © 2012 Ryder System, Inc. All rights reserved. 20

  21. Slide 21: Balance Sheet

    Balance Sheet ($ Millions) March 31, December 31, 2012 2011 Cash and Cash Equivalents $ 114 $ 105 Other Current Assets 1,002 984 Revenue Earning Equipment, Net 5,530 5,050 Operating Property and Equipment, Net 626 624 Other Assets 878 856 Total Assets $ 8,149 $ 7,618 Short-Term Debt / Current Portio

  22. Slide 22: U.S. Asset Management Update

    (a) U.S. Asset Management Update Number of Units 1Q 07 1Q 08 1Q 09 1Q 10 1Q 11 1Q 12 2,500 Redeployments – vehicles coming off-lease with useful 2,088 life remaining are redeployed 2,000 in the Ryder fleet (Commercial 1,855 Rental, SCS, or with another Lease customer). 1,701 1,684 Extensions – Ryder

  23. Slide 23: Financial Indicators Forecast

    Financial Indicators Forecast (1) Total Cash Generated (2) Gross Capital Expenditures (2) ($ Millions) Full Service Lease Commercial Rental $2,200 PP&E/Other $1,757 $1,760 $1,399 $1,289 $1,265 $1,165 $1,182 $1,088 $657 $600 $725 $611 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2

  24. Slide 24: New Business Segment Presentation

    New Business Segment Presentation (1) ($ Millions) 1Q 2011 2Q 2011 3Q 2011 4Q 2011 FY 2011 Operating Revenue: Fleet Management Solutions $ 719.0 $ 778.9 $ 824.7 $ 813.3 $ 3,135.9 Supply Chain Solutions 452.7 456.8 476.3 471.8 1,857.5 Eliminations (42.6) (43.7) (44.4) (48.1) (178.8) Total $ 1,129.1 $

  25. Slide 25: New Business Segment Presentation

    New Business Segment Presentation (1) ($ Millions) 1Q 2010 2Q 2010 3Q 2010 4Q 2010 FY 2010 Operating Revenue: Fleet Management Solutions $ 677.4 $ 709.0 $ 733.9 $ 726.3 $ 2,846.5 Supply Chain Solutions 350.2 368.5 377.2 377.6 1,473.5 Eliminations (40.0) (40.4) (39.5) (41.9) (161.8) Total $ 987.6 $ 1

  26. Slide 26: New Business Segment Presentation

    New Business Segment Presentation (1) ($ Millions) 1Q 2009 2Q 2009 3Q 2009 4Q 2009 FY 2009 Operating Revenue: Fleet Management Solutions $ 693.2 $ 712.6 $ 712.5 $ 699.5 $ 2,817.7 Supply Chain Solutions 341.1 347.0 362.8 361.0 1,412.0 Eliminations (43.5) (41.8) (41.2) (40.7) (167.2) Total $ 990.8 $ 1

  27. Slide 27: New SCS Segment Presentation

    New SCS Segment Presentation (1) 1Q 2011 2Q 2011 3Q 2011 4Q 2011 FY 2011 Automotive $ 122.7 $ 107.8 $ 115.3 $ 123.3 $ 469.2 High-Tech 80.4 85.4 84.0 83.8 333.6 Retail & CPG 167.1 176.1 187.6 180.3 711.0 Industrial & Other 82.5 87.6 89.3 84.3 343.7 Operating Revenue 452.7 456.8 476.3 471.7 1,857.5 Su

  28. Slide 28: New SCS Segment Presentation

    New SCS Segment Presentation (1) 1Q 2010 2Q 2010 3Q 2010 4Q 2010 FY 2010 Automotive $ 106.6 $ 113.1 $ 114.7 $ 114.2 $ 448.7 High-Tech 72.3 74.7 79.3 82.5 308.8 Retail & CPG 95.6 98.6 100.2 100.3 394.7 Industrial & Other 75.8 82.1 83.0 80.5 321.3 Operating Revenue 350.2 368.5 377.2 377.6 1,473.5 Subc

  29. Slide 29: New SCS Segment Presentation

    New SCS Segment Presentation (1) 1Q 2009 2Q 2009 3Q 2009 4Q 2009 FY 2009 Automotive $ 94.9 $ 98.0 $ 107.3 $ 109.2 $ 409.3 High-Tech 75.0 75.8 75.6 74.0 300.4 Retail & CPG 91.7 91.6 96.8 99.3 379.4 Industrial & Other 79.5 81.7 83.0 78.6 322.8 Operating Revenue 341.1 347.1 362.8 361.0 1,412.0 Subcontr

  30. Slide 30: Segment – Revenue

    Operating Revenue Segment – Revenue (1) Total Revenue ($ Billions) Full Year 8 6.1 6.4 6.0 5.6 4.9 6.1 6 5.0 4.8 4.8 5.0 5.1 Ryder System 4 4.1 4.3 4.5 4.6 4.1 4.2 4.8 4.0 3.9 3.9 4.0 2 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 4.1 4.2 4.5 3.9 3.6 4.2 4 3.6 3.7 Fleet 3.4 3.2 3.2 Managem

  31. Slide 31: Segment – Earnings Before Tax (EBT)

    EBT as % of Operating Revenue Segment – Earnings Before Tax (EBT) (1) EBT as % of Total Revenue Full Year 10 8.3 8.7 9.0 12.0 12.3 8 4.5 5.5 5.8 6 6.5 4.5 Ryder 6.5 6.4 6.4 8.6 8.4 4 4.6 System 0.8 3.7 4.4 2.9 3.6 2 0 0.6 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 12.9 13.1 14 11.8 12.0

  32. Slide 32: 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. Non-GAAP financial measures should be considered in addition t

  33. Slide 33: Earnings and EPS from Continuing Operations Reconciliation

    Earnings and EPS from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 1Q12 - 1Q12 - 1Q11 - 1Q11 - Earnings EPS Earnings EPS Reported $ 34.9 $ 0.68 $ 25.9 $ 0.50 Tax Benefits (5.0) (0.10) - - Restructuring Charges 0.6 0.01 0.5 0.01 Comparable 30.6 0.59 26.3 0.51 Non-Service

  34. Slide 34: EBT and Tax Rate from Continuing Operations Reconciliation

    EBT and Tax Rate from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 1Q12 - 1Q12 - 1Q12 - EBT Tax Tax Rate Reported $ 47.7 $ 12.8 26.9% Tax Benefits - 5.0 Restructuring Charges 0.9 0.2 Comparable $ 48.6 $ 18.0 37.1% 4/24/2012 © 2012 Ryder System, Inc. All rights reserved.

  35. Slide 35: Adjusted Return on Capital Reconciliation

    Adjusted Return on Capital Reconciliation ($ Millions) 3/31/12 3/31/11 Net Earnings (1) $ 179 $ 131 Restructuring and Other Charges, Net and Other Items 6 7 Income Taxes 103 69 Adjusted Earnings Before Income Taxes 288 207 Adjusted Interest Expense (2) 135 134 Adjusted Income Taxes (3) (156) (132) A

  36. Slide 36: Segment Adjusted Return on Capital Reconciliation

    Segment Adjusted Return on Capital Reconciliation ($ Millions) 2011 2010 FMS SCS FMS SCS Net Earnings (1) $ 161 $ 65 $ 132 $ 46 Restructuring and Other Charges, Net and Other Items 6 - - 3 Income Taxes 99 40 63 32 Adjusted Earnings Before Income Taxes 266 105 195 81 (2) Adjusted Interest Expense 135

  37. Slide 37: Debt to Equity Reconciliation

    Debt to Equity Reconciliation ($ Millions) % 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% $1,783 118% $2,185 143

  38. Slide 38: Debt to Equity Reconciliation

    Debt to Equity Reconciliation ($ Millions) % to % to % to % to % to 12/31/08 Equity 12/31/09 Equity 12/31/10 Equity 12/31/11 Equity 3/31/12 Equity 3/31/11 Balance Sheet Debt $2,863 213% $2,498 175% $2,747 196% $3,382 257% $3,593 262% $2,809 Receivables Sold - - - - - - PV of minimum lease payments a

  39. Slide 39: Cash Flow Reconciliation

    Cash Flow Reconciliation ($ 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) 2

  40. Slide 40: Cash Flow Reconciliation

    Cash Flow Reconciliation ($ Millions) 12/31/10 12/31/11 3/31/12 3/31/11 Cash Provided by Operating Activities from Continuing Operations $ 1,028 $ 1,042 $ 186 $ 218 Proceeds from Sales (Primarily Revenue Earning Equipment) 235 300 94 71 Proceeds from Sale and Leaseback of Assets - 37 - - Collections

  41. Slide 41: FMS Operating Results 2009 - 2011

    FMS Operating Results 2009 - 2011 ($ Millions) 1Q 2009 2Q 2009 3Q 2009 4Q 2009 FY 2009 Fleet Management Solutions Operating Revenue $ 693.2 $ 712.6 $ 712.5 $ 699.5 $ 2,817.7 Fuel Services Revenue 170.3 178.7 200.3 200.8 750.1 Total 863.5 891.3 912.8 900.2 3,567.8 1Q 2010 2Q 2010 3Q 2010 4Q 2010 FY 2

  42. Slide 42: Earnings from Continuing Operations Reconciliation 2009

    Earnings from Continuing Operations Reconciliation 2009 ($ Millions or $ Earnings Per Share) 1Q09 - 2Q09 - 3Q09 - 4Q09 - FY09 - Earnings Earnings Earnings Earnings Earnings Reported $ 10.9 $ 27.1 $ 28.4 $ 23.7 $ 90.1 International Asset Impairment 3.9 - 0.2 2.4 6.7 Reversal of Tax Reserves - - (2.2)

  43. Slide 43: Earnings from Continuing Operations Reconciliation 2010

    Earnings from Continuing Operations Reconciliation 2010 ($ Millions or $ Earnings Per Share) 1Q10 - 2Q10 - 3Q10 - 4Q10 - FY10 - Earnings Earnings Earnings Earnings Earnings Reported $ 22.5 $ 52.2 $ 62.0 $ 41.4 $ 124.6 Int'l Asset Gain on Sale - - - (0.9) (0.9) Tax Benefits - - - (10.8) (10.8) Acquis

  44. Slide 44: Earnings from Continuing Operations Reconciliation 2011

    Earnings from Continuing Operations Reconciliation 2011 ($ Millions or $ Earnings Per Share) 1Q11 - 2Q11 - 3Q11 - 4Q11 - FY11 - Earnings Earnings Earnings Earnings Earnings Reported $ 25.9 $ 40.9 $ 56.9 $ 47.7 $ 171.4 Tax Law Changes/Benefits - 5.4 (0.6) - 4.8 Acquisition Transaction Costs - 1.5 - 0

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