Slide 1: Third Quarter 2015 Earnings Conference Call
Third Quarter 2015 Earnings Conference Call October 22, 2015
Slide 2: Safe Harbor and Non-GAAP Financial Measures
© 2015 Ryder System, Inc. All Rights Reserved. Safe Harbor and Non-GAAP Financial Measures 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 earn
Slide 3: Contents
© 2015 Ryder System, Inc. All Rights Reserved. Contents 3 ► Third Quarter 2015 Results Overview ►Asset Management Update ► Earnings Forecast ► Q & A
Slide 4: 3rd Quarter Results Overview
© 2015 Ryder System, Inc. All Rights Reserved. 3rd Quarter Results Overview 4 ► Comparable earnings per share from continuing operations were $1.74 vs. $1.63 in 3Q14 ► Earnings per diluted share from continuing operations were $1.70 in 3Q15 vs. $1.58 in 3Q14 – 3Q15 and 3Q14 included non-operating pe
Slide 5: Key Financial Statistics Third Quarter
© 2015 Ryder System, Inc. All Rights Reserved. Key Financial Statistics 5 Third Quarter ($ Millions, Except Per Share Amounts) Note: Amounts throughout presentation may not be additive due to rounding. Operating Revenue Fuel and Subcontracted Transportation Total Revenue Comparable Earnings Per Shar
Slide 6: Key Financial Statistics Year-To-Date
© 2015 Ryder System, Inc. All Rights Reserved. Key Financial Statistics 6 Year-To-Date ($ Millions, Except Per Share Amounts) Operating Revenue Fuel and Subcontracted Transportation Total Revenue Comparable Earnings Per Share from Continuing Operations Earnings Per Share from Continuing Operations 2
Slide 7: 3rd Quarter Results Overview – FMS
© 2015 Ryder System, Inc. All Rights Reserved. 3rd Quarter Results Overview – FMS 7 ► Fleet Management Solutions (FMS) operating revenue up 6% (up 8% excluding foreign exchange) and total revenue down 2% vs. prior year – Full service lease revenue up 6% (up 8% excluding foreign exchange) – Contract
Slide 8: 3rd Quarter Results Overview – DTS
© 2015 Ryder System, Inc. All Rights Reserved. 3rd Quarter Results Overview – DTS 8 ► Dedicated Transportation Solutions (DTS) operating revenue up 9% and total revenue unchanged from prior year – Operating revenue increased due to new business as well as higher volumes and pricing – Total revenue u
Slide 9: 3rd Quarter Results Overview – SCS
© 2015 Ryder System, Inc. All Rights Reserved. 3rd Quarter Results Overview – SCS 9 ► Supply Chain Solutions (SCS) operating revenue up 5% (up 9% excluding foreign exchange) and total revenue down 1% vs. prior year – Operating revenue increased due to new business, higher pricing and increased volum
Slide 10: Business Segments Third Quarter
© 2015 Ryder System, Inc. All Rights Reserved. Business Segments 10 2015 2014 Operating Revenue: Fleet Management Solutions 988.4$ 931.9$ Dedicated Transportation Solutions 184.2 168.7 Supply Chain Solutions 318.8 304.8 Eliminations (65.0) (60.9) Total 1,426.5$ 1,344.5$ Segment Earnings Before Tax:
Slide 11: Business Segments Year-To-Date
© 2015 Ryder System, Inc. All Rights Reserved. Business Segments 11 2015 2014 Operating Revenue: Fleet Management Solutions 2,846.7$ 2,699.7$ Dedicated Transportation Solutions 526.9 491.9 Supply Chain Solutions 934.3 890.4 Eliminations (188.4) (179.1) Total 4,119.4$ 3,902.9$ Segment Earnings Before
Slide 12: Capital Expenditures
© 2015 Ryder System, Inc. All Rights Reserved. Capital Expenditures 12 2015 $ 2015 2014 O/(U) 2014 Full Service Lease 1,510$ 1,224$ 286$ Commercial Rental 513 391 122 Operating Property and Equipment 83 122 (39) Gross Capital Expenditures 2,106 1,737 369 Less: Proceeds from Sales (Primarily Revenue
Slide 13: Cash Flow from Continuing Operations
© 2015 Ryder System, Inc. All Rights Reserved. Cash Flow from Continuing Operations 13 Year-To-Date ($ 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
Slide 14: Debt to Equity
© 2015 Ryder System, Inc. All Rights Reserved. 272% 227% 260% 279% 250% 0% 50% 100% 150% 200% 250% 300% 12/31/12 12/31/13 12/31/14 9/30/15 Long Term Target Midpoint Pension Impact Debt to Equity Debt to Equity Ratio 14 9/30/15 12/31/14 9/30/14 Total Debt 5,451$ 4,731$ 4,733$ Total Equity (3) 1,952$
Slide 15: Contents
© 2015 Ryder System, Inc. All Rights Reserved. Contents 15 ► Third Quarter 2015 Results Overview ►Asset Management Update ► Earnings Forecast ► Q & A
Slide 16: Global Asset Management Update
© 2015 Ryder System, Inc. All Rights Reserved. ► Units held for sale were 6,100 at quarter end, up from 5,800 units held for sale in the prior year ─ Sequentially from the second quarter, units held for sale increased by 200 units ► The number of used vehicles sold in the third quarter was 4,400, do
Slide 17: Contents
© 2015 Ryder System, Inc. All Rights Reserved. Contents 17 ► Third Quarter 2015 Results Overview ►Asset Management Update ► Earnings Forecast ► Q & A
Slide 18: EPS Forecast – Continuing Operations
© 2015 Ryder System, Inc. All Rights Reserved. EPS Forecast – Continuing Operations 18 2015 Comparable EPS Forecast(1) $ 1.72 - 1.82 $ 6.17 - 6.29 2014 Comparable EPS(2) $ 1.59 $ 5.58 Fourth Quarter Full Year ($ Earnings Per Share) (1) 4Q15 Comparable EPS Forecast excludes $0.05 of non-operating pen
Slide 19: Q&A
© 2015 Ryder System, Inc. All Rights Reserved. Q&A 19
Slide 20: Appendix
© 2015 Ryder System, Inc. All Rights Reserved. Appendix 20 Full Service Lease Vehicle Count Business Segment Detail Central Support Services Balance Sheet Adjusted Return on Capital History Asset Management Non-GAAP Financial Measures & Reconciliations
Slide 21: Full Service Lease (FSL) Fleet Count
© 2015 Ryder System, Inc. All Rights Reserved. End of Period FSL Fleet (as reported) UK FSL Trailers FSL Fleet - excluding UK Sequential Change FSL Fleet (as reported) UK FSL Trailers FSL Fleet - excluding UK 3Q14 4Q14 1Q15 2Q15 3Q15 123,200 125,500 127,500 128,700 130,600 7,400 4,300 4,400 4,400 4,
Slide 22: Fleet Management Solutions Revenue – Third Quarter
© 2015 Ryder System, Inc. All Rights Reserved. Fleet Management Solutions (FMS) 22 Revenue 2015 2014 % B/(W) Full Service Lease 609.3$ 575.8$ 6% Contract Maintenance 48.6 46.9 4% Contractual Revenue 657.9 622.7 6% Commercial Rental 250.6 234.2 7% Contract-related Maintenance 59.9 56.8 5% Other 20.0
Slide 23: Fleet Management Solutions Revenue – Year-To-Date
© 2015 Ryder System, Inc. All Rights Reserved. Fleet Management Solutions (FMS) 23 Revenue Full Service Lease Contract Maintenance Contractual Revenue Commercial Rental Contract-related Maintenance Other Operating Revenue Fuel Services Revenue Total Revenue Earnings Before Tax Segment Earnings Befor
Slide 24: Dedicated Transportation Solutions – Third Quarter
© 2015 Ryder System, Inc. All Rights Reserved. Dedicated Transportation Solutions (DTS) 24 ($ Millions) Revenue 2015 2014 Operating Revenue 184.2$ 168.7$ Subcontracted Transportation 13.7 17.1 Fuel Costs 29.0 41.8 Total Revenue 226.9$ 227.6$ Earnings Before Tax Segment Earnings Before Tax (EBT) 13.3
Slide 25: Dedicated Transportation Solutions – Year-To-Date
© 2015 Ryder System, Inc. All Rights Reserved. Dedicated Transportation Solutions (DTS) 25 ($ Millions) Revenue 2015 2014 % B/(W) Operating Revenue 526.9$ 491.9$ 7% Subcontracted Transportation 42.8 56.5 (24)% Fuel Costs 93.4 129.2 (28)% Total Revenue 663.1$ 677.5$ (2)% Earnings Before Tax Segment E
Slide 26: Supply Chain Solutions – Third Quarter
© 2015 Ryder System, Inc. All Rights Reserved. Supply Chain Solutions (SCS) 26 ($ Millions) Revenue 2015 2014 Automotive 118.8$ 112.0$ Technology & Healthcare 62.5 60.7 CPG & Retail 109.6 105.5 Industrial & Other 28.0 26.6 Operating Revenue 318.8 304.8 Subcontracted Transportation 54.0 63.7 Fuel Cos
Slide 27: Supply Chain Solutions – Year-To-Date
© 2015 Ryder System, Inc. All Rights Reserved. Supply Chain Solutions (SCS) 27 ($ Millions) Revenue 2015 2014 % B/(W) Automotive 347.3$ 344.1$ 1% Technology & Healthcare 185.8 168.1 11% CPG & Retail 323.0 299.0 8% Industrial & Other 78.2 79.3 (1)% Operating Revenue 934.3 890.4 5% Subcontracted Trans
Slide 28: Central Support Services Third Quarter
© 2015 Ryder System, Inc. All Rights Reserved. Central Support Services (CSS) 28 Third Quarter ($ Millions) 2015 2014 % B/(W) Allocated CSS Costs 52.2$ 48.2$ (8)% Unallocated CSS Costs 10.1 13.6 26% Total CSS Costs 62.3$ 61.8$ (1)%
Slide 29: Central Support Services Year-To-Date
© 2015 Ryder System, Inc. All Rights Reserved. Central Support Services (CSS) 29 Year-To-Date ($ Millions) 2015 2014 % B/(W) Alloc ed CSS Costs 152.7$ 142.1$ (8)% Unallocated CSS Costs 32.9 36.5 10% Total CSS Costs 185.6$ 178.6$ (4)%
Slide 30: Balance Sheet
© 2015 Ryder System, Inc. All Rights Reserved. Balance Sheet 30 Current Assets Revenue Earning Equipment, Net Operating Property and Equipment, Net Other Assets Total Assets Current Liabilities Total Debt Other Non-Current Liabilities (including Deferred Income Taxes) Shareholders' Equity Total Liab
Slide 31: Adjusted Return on Capital History
© 2015 Ryder System, Inc. All Rights Reserved. Adjusted Return on Capital History Adjusted Return on Capital (ROC) 6.8% 6.7% 6.6% 6.5% 6.3% 6.1% 5.5% 4.8% 4.8% 4.7% 4.5% 7.8% 7.9% 7.4% 7.3% 4.1% 4.8% 5.7% 5.7% 5.8% 5.8% 6.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Forecast Cost of Cap
Slide 32: Asset Management Update (US Only)
© 2015 Ryder System, Inc. All Rights Reserved. 3,138 5,255 4,899 4,033 6,752 3,005 3,348 5,119 2,352 3,727 5,557 1,861 3,101 5,008 2,274 2,896 4,646 2,390 2,180 4,028 2,286 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Redeployments Extensions Early Terminations N u m b e r o f U n i t s 3Q09 YT
Slide 33: Non-GAAP Financial Measures
© 2015 Ryder System, Inc. All Rights Reserved. Non-GAAP Financial Measures 33 ► 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 fin
Slide 34: Foreign Exchange Impact on Operating Revenue Growth
© 2015 Ryder System, Inc. All Rights Reserved. 34 Foreign Exchange Impact on Operating Revenue Growth Third Quarter Year-To-Date YOY Growth Fx Impact (1) YOY Growth excl Fx YOY Growth Fx Impact (1) YOY Growth excl Fx Operating Revenue 6% (2)% 8% 6% (2)% 8% FMS Operating Revenue 6% (2)% 8% 5% (2)% 7%
Slide 35: Earnings and EPS from Continuing Operations Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. Earnings and EPS from Continuing Operations Reconciliation 35 3Q15 3Q15 3Q14 3Q14 Earnings EPS Earnings EPS Reported 90.8$ 1.70$ 84.0$ 1.58$ Non-operating pension costs 2.7 0.05 1.4 0.03 Pension settlement adjustment (0.3) (0.01) 0.8 0.01 Acquisition tr
Slide 36: EBT and Tax Rate from Continuing Operations Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. 3Q15 3Q15 3Q15 YTD15 YTD15 YTD15 EBT Tax Tax Rate EBT Tax Tax Rate Reported 139.9$ 49.1$ 35.1% 357.5$ 127.5$ 35.7% Non-operating pension costs 4.8 2.1 14.4 6.2 Professional fees 0.1 - 3.8 1.4 Pension settlement adjustments (0.5) (0.2) (0.5) (0.2) Tax la
Slide 37: Appendix: Non-GAAP Financial Measures
© 2015 Ryder System, Inc. All Rights Reserved. Appendix: Non-GAAP Financial Measures 37 Net earnings (1) Cumulative effect of change in accounting principle Restructuring and other charges, net and other items Income taxes Adjusted earnings before income taxes Adjusted interest expense (2) Adjusted
Slide 38: Adjusted Return on Capital Reconciliation
© 2015 Ryder System, Inc. All Rights Reserved. Appendix: Non-GAAP Financial Measures 38 ($ 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 taxe
Slide 39: © 2015 Ryder System, Inc. All Rights Reserved.
© 2015 Ryder System, Inc. All Rights Reserved.