Slide 1: First Quarter 2011 Earnings Conference Call
First Quarter 2011 Earnings Conference Call April 26, 2011
Slide 2: Safe Harbor
04/26/11 Proprietary and Confidential 2 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, these forward-looking statements should be evaluated with considerati
Slide 3: Contents
Contents First Quarter 2011 Results Overview Asset Management Update Earnings Outlook Q & A 04/26/11 3 Proprietary and Confidential
Slide 4: 1st Quarter Results Overview
04/26/11 Proprietary and Confidential 4 1st Quarter Results Overview Earnings per diluted share from continuing operations were $0.50 in 1Q11 vs. $0.24 in 1Q10 1Q11 included a $0.01 charge for acquisition-related items Comparable earnings per share from continuing operations were $0.51 in 1Q11 vs. $
Slide 5: 1st Quarter Results Overview - FMS
04/26/11 Proprietary and Confidential 5 1st Quarter Results Overview - FMS Fleet Management Solutions (FMS) total revenue up 11% (and operating revenue up 6%) vs. prior year Contractual revenue unchanged Full service lease revenue up 1% Contract maintenance revenue decreased 4% Commercial rental rev
Slide 6: 1st Quarter Results Overview - SCS / DCC
04/26/11 Proprietary and Confidential 6 1st Quarter Results Overview - SCS / DCC Supply Chain Solutions (SCS) total revenue up 36% (and operating revenue up 36%) vs. prior year due to the TLC acquisition and increased freight volumes SCS net before tax earnings (NBT) up 72% SCS NBT percent of operat
Slide 7: Key Financial Statistics
04/26/11 Proprietary and Confidential 7 Key Financial Statistics First Quarter ($ Millions, Except Per Share Amounts) Note: Amounts throughout presentation may not be additive due to rounding. Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Includes discontinued operatio
Slide 8: Business Segments
04/26/11 Proprietary and Confidential 8 Business Segments First Quarter Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Our primary measure of segment financial performance excludes restructuring and other charges, net and other items. The restructuring and other items o
Slide 9: Capital Expenditures from Continuing Operations
04/26/11 Proprietary and Confidential 9 Capital Expenditures from Continuing Operations First Quarter ($ Millions) Note: Amounts may not recalculate due to rounding.
Slide 10: Cash Flow from Continuing Operations
04/26/11 Proprietary and Confidential 10 Cash Flow from Continuing Operations First Quarter ($ Millions) Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment. F
Slide 11: Debt to Equity Ratio
04/26/11 Proprietary and Confidential 11 Debt to Equity Ratio Note: Includes impact of accumulated net pension related equity charge of $420 million as of 3/31/11, $423 million as of 12/31/10 and $409 million as of 3/31/10. The Company uses total obligations and total obligations to equity, non-GAAP
Slide 12: Contents
Contents First Quarter 2011 Results Overview Asset Management Update Earnings Outlook Q & A 04/26/11 12 Proprietary and Confidential
Slide 13: Global Asset Management Update
04/26/11 Proprietary and Confidential 13 Units held for sale were 5,000 at quarter end; down 26% from 6,800 units held for sale in the prior year Units held for sale were down 4% from 5,200 at the end of the prior quarter The number of used vehicles sold in the first quarter were 4,100, down 13% com
Slide 14: Contents
Contents First Quarter 2011 Results Overview Asset Management Update Earnings Outlook Q & A 04/26/11 14 Proprietary and Confidential
Slide 15: EPS Forecast - Continuing Operations
04/26/11 15 EPS Forecast - Continuing Operations ($ Earnings Per Share) Proprietary and Confidential Non-GAAP financial measure. (Comparable EPS in FY10 excludes a gain on sale of an international asset of $0.02, tax benefits of $0.21 and acquisition costs of $0.08.) Increasing full year 2011 EPS fo
Slide 16: Q&A
Q&A
Slide 17: Appendix
Appendix Business Segment Detail Central Support Services Balance Sheet Asset Management Financial Indicators Forecast Non-GAAP Financial Measures & Reconciliations 04/26/11 17 Proprietary and Confidential
Slide 18: Fleet Management Solutions (FMS) First Quarter
04/26/11 Proprietary and Confidential 18 Fleet Management Solutions (FMS) First Quarter ($ Millions)
Slide 19: Supply Chain Solutions (SCS) First Quarter
04/26/11 Proprietary and Confidential 19 Supply Chain Solutions (SCS) First Quarter ($ Millions)
Slide 20: Dedicated Contract Carriage (DCC) First Quarter
04/26/11 Proprietary and Confidential 20 Dedicated Contract Carriage (DCC) First Quarter ($ Millions)
Slide 21: Central Support Services (CSS) First Quarter
04/26/11 Proprietary and Confidential 21 Central Support Services (CSS) First Quarter ($ Millions)
Slide 22: Balance Sheet
04/26/11 Proprietary and Confidential 22 Balance Sheet ($ Millions)
Slide 23: U.S. Asset Management Update
04/26/11 Proprietary and Confidential 23 U.S. Asset Management Update (a) U.S. only Excludes early terminations where customer purchases vehicle Current year statistics may exclude some units due to a lag in reporting (b) Number of Units (c) (c)
Slide 24: Free Cash Flow
Free Cash Flow FSL 974 449 536 459 863 1073 1493 889 986 548 647 1060 Commercial Rental 213 131 20 220 242 251 195 219 171 7 379 575 PP&E/Other 102 77 44 46 60 75 69 74 108 56 62 120 04/26/11 Proprietary and Confidential 24 Free Cash Flow 1054 835 949 1091 1381 1179 1252 1684 1571 1266 1328 1465 200
Slide 25: Non-GAAP Financial Measures
04/26/11 Proprietary and Confidential 25 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 m
Slide 26: Earnings and EPS from Continuing Operations Reconciliation
Earnings and EPS from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) Proprietary and Confidential 26 26 Proprietary and Confidential 04/26/11
Slide 27: NBT and Tax Rate from Continuing Operations Reconciliation
Proprietary and Confidential 27 NBT and Tax Rate from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) 04/26/11 27 Proprietary and Confidential
Slide 28: Adjusted Return on Capital Reconciliation
04/26/11 Proprietary and Confidential 28 Adjusted Return on Capital Reconciliation Earnings calculated based on a 12-month rolling period. Interest expense includes implied interest on off-balance sheet vehicle obligations. Income taxes were calculated by excluding taxes related to comparable earnin
Slide 29: Segment Adjusted Return on Capital Reconciliation
04/26/11 Proprietary and Confidential 29 Segment Adjusted Return on Capital Reconciliation Earnings calculated based on a 12-month rolling period. Interest expense includes implied interest on off-balance sheet vehicle obligations. Income taxes were calculated by excluding taxes related to comparabl
Slide 30: Debt to Equity Reconciliation
04/26/11 Proprietary and Confidential 30 Debt to Equity Reconciliation Note: In connection with adopting FIN 46 effective July 1, 2003, the Company consolidated the vehicle securitization trusts previously disclosed as off-balance sheet debt. ($ Millions)
Slide 31: Debt to Equity Reconciliation
04/26/11 Proprietary and Confidential 31 Debt to Equity Reconciliation ($ Millions) Note: Amounts may not recalculate due to rounding.
Slide 32: Cash Flow Reconciliation
04/26/11 Proprietary and Confidential 32 ($ Millions) Cash Flow Reconciliation The Company uses total cash generated, a non-GAAP financial measure, because management considers it to be an important measure of comparative operating performance. Management believes total cash generated provides inves
Slide 33: Cash Flow Reconciliation
04/26/11 Proprietary and Confidential 33 ($ Millions) Cash Flow Reconciliation The Company uses total cash generated, a non-GAAP financial measure, because management considers it to be an important measure of comparative operating performance. Management believes total cash generated provides inves
Slide 34: CAyder
CAyder