-
Q1 EPS from Continuing Operations Up 108% to $0.50
-
Q1 Comparable EPS from Continuing Operations Up 113% to $0.51
-
Q1 Total Revenue Up 17%; Operating Revenue Grows 14%
-
Full-Year 2011 Comparable EPS Forecast Raised to $2.90 to $3.00
MIAMI--(BUSINESS WIRE)--
Ryder System, Inc. (NYSE: R), a leader in transportation and supply
chain management solutions, today reported earnings per diluted share
from continuing operations for the three-month period ended March 31,
2011 were $0.50, compared with $0.24 in the year-earlier period.
Earnings from continuing operations were $25.9 million, compared with
$12.9 million in the year-earlier period. Earnings per diluted share and
net earnings for the first quarter of 2011 included a restructuring
charge of $0.01 and $0.5 million, respectively. Excluding this item,
comparable earnings per diluted share from continuing operations for the
first quarter of 2011 were $0.51, up 113% from $0.24 in the same period
of 2010. Comparable earnings from continuing operations of $26.3 million
for the first quarter of 2011 were up 104% from $12.9 million in the
year-earlier period. The increase in comparable earnings primarily
reflects better organic performance in commercial rental and used
vehicle sales, acquisitions, and higher volumes in the Supply Chain
Solutions (SCS) business segment.
Net earnings per diluted share (including discontinued operations) for
the three-month period ended March 31, 2011 were $0.48 versus $0.23 in
the year-earlier period. Earnings per diluted share from discontinued
operations (previously announced in 2009) totaled a loss of $0.02 in the
first quarter of 2011, compared with a loss of $0.01 in the same period
of the prior year. Net earnings for the first quarter of 2011 were $25.1
million versus $12.4 million in the year-earlier period.
Total revenue for the first quarter of 2011 was $1.43 billion, up 17%
from $1.22 billion in the same period last year. Operating revenue
(revenue excluding Fleet Management Solutions fuel and all subcontracted
transportation), was $1.13 billion, up 14% compared with $987.6 million
in the year-earlier period, reflecting the benefit of acquisitions and
organic growth. Fleet Management Solutions (FMS) business segment total
revenue increased 11% due primarily to higher fuel services and
commercial rental revenues. FMS operating revenue increased 6% due
primarily to higher commercial rental revenue. SCS business segment
total and operating revenue both increased 36% due to an acquisition and
higher freight volumes. Dedicated Contract Carriage (DCC) business
segment total revenue increased 16% and operating revenue increased 15%,
reflecting an acquisition and the pass-through of higher fuel costs.
“Ryder performed significantly better than expected in the first
quarter, with continuing strong organic results in our used vehicle
sales and commercial truck rental product lines, and from acquisitions
which contributed earlier and stronger than anticipated,” said Ryder
Chairman and CEO Greg Swienton. “Our full service lease fleet expanded
for the first time in eight quarters, with the positive impact of recent
acquisitions. We also saw a number of key indicators that reflected
stronger activity with our lease customers including increases in miles
driven per unit and a significant reduction in early terminations of
customer lease agreements. Our lease product line was, however, impacted
by higher maintenance costs on an older fleet. Our supply chain
management business also demonstrated continued earnings improvement
with revenue growth in all of our four targeted industry sectors. In
addition to delivering exceptionally strong results for the quarter, we
also began to make strategic investments in technology and sales and
marketing to benefit future years.”
First Quarter Business Segment Operating Results
Fleet Management Solutions (FMS)
In the FMS business segment, total revenue in the first quarter of 2011
was $980.1 million, up 11% compared with the year-earlier period. Fuel
services revenue in the first quarter of 2011 increased 26% compared
with the same period in 2010 due to higher fuel prices. Operating
revenue (revenue excluding fuel) in the first quarter of 2011 was $719.0
million, up 6% compared with the year-earlier period. Full service lease
revenue increased 1% in the first quarter of 2011 due to acquisitions
and favorable foreign exchange rate movements. Commercial rental revenue
increased 34% reflecting improving global market demand and higher
pricing. Rental power fleet utilization improved approximately 400 basis
points to 73% in the first quarter of 2011. FMS total revenue and
operating revenue included a favorable foreign exchange impact of 1%.
The FMS business segment’s pre-tax earnings were $38.6 million in the
first quarter of 2011, up 78% compared with $21.7 million in the same
period of 2010. This increase primarily reflected significantly better
commercial rental performance and improved used vehicle sales results.
As expected, these items were partially offset by lower full service
lease results and planned higher spending on initiatives. Commercial
rental performance improved as a result of increasing market demand and
higher pricing on an 11% larger average fleet. Used vehicle sales
results were favorably impacted by higher pricing, as well as lower
average quarterly inventory levels compared with the prior-year period.
Full service lease results continued to be adversely impacted by higher
maintenance costs on a comparatively older fleet. However, lease mileage
comparisons improved, reflecting increased usage of existing customer
leased fleets. Results were impacted by increased compensation-related
expenses and higher planned spending on growth initiatives. FMS first
quarter results also benefited from a gain of $2.4 million from the sale
of a facility, as well as the acquisitions of The Scully Companies
(Scully) and Carmenita Leasing Company. Business segment pre-tax
earnings as a percentage of operating revenue was 5.4% in the first
quarter of 2011, up 220 basis points compared with 3.2% in the same
quarter a year ago.
Supply Chain Solutions (SCS)
In the SCS business segment, first quarter 2011 total revenue was $401.0
million, up 36% from the comparable period in 2010. First quarter 2011
operating revenue (revenue excluding subcontracted transportation) was
$324.3 million, up 36% compared with the comparable period a year ago.
SCS total revenue and operating revenue comparisons benefited from the
acquisition of Total Logistic Control (TLC) in December of 2010 and
higher freight volumes.
The SCS business segment’s pre-tax earnings in the first quarter of 2011
were $12.1 million, up 72% compared with $7.0 million in the same
quarter of 2010, driven by the TLC acquisition, better operating
performance, and higher volumes. First quarter 2011 pre-tax earnings for
the business segment as a percentage of operating revenue were 3.7%, up
80 basis points compared with 2.9% in the same quarter of 2010.
Dedicated Contract Carriage (DCC)
In the DCC business segment, first quarter 2011 total revenue of $134.7
million was up 16% compared with the first quarter of 2010. Operating
revenue (revenue excluding subcontracted transportation) in the first
quarter of 2011 was $128.4 million, an increase of 15% from the
year-earlier period. Total and operating revenue grew due to the
acquisition of Scully in January 2011 and higher fuel cost pass-throughs.
The DCC business segment’s pre-tax earnings in the first quarter of 2011
were $7.4 million, unchanged from the first quarter of 2010. Business
segment pre-tax earnings benefited from the Scully acquisition but were
offset by unusually high costs incurred to close certain customer
locations and increased driver costs. Business segment pre-tax earnings
as a percentage of operating revenue were 5.8% in the first quarter of
2011, down 80 basis points compared with 6.6% in the year-earlier period.
Corporate Financial Information
Central Support Services
Central Support Services (CSS) are overhead costs incurred to support
all business segments and product lines. Most CSS costs are allocated to
the various business segments. In the first quarter of 2011, CSS costs
were $45.5 million, up from $42.4 million in the year-earlier period
reflecting planned strategic investments in information technology
initiatives and higher compensation expense.
Restructuring and Other Items
Pre-tax restructuring charges totaled $0.8 million ($0.5 million after
tax), or $0.01 per diluted share in the first quarter of 2011. These
planned charges related to the acquisition of Scully, and included
severance and employee-related costs, as well as the cancellation of
certain non-essential equipment contracts.
Income Taxes
The Company’s effective income tax rate from continuing operations for
the first quarter of 2011 was 40.7% of pre-tax earnings compared with
42.8% in the year-earlier period. The current period income tax rate was
negatively impacted by a tax law change in Illinois of $1.2 million
(2.8% of pre-tax earnings), reducing reported earnings by $0.02 per
diluted share. The year-earlier period income tax rate was impacted by
non-deductible items on lower earnings.
Capital Expenditures
Capital expenditures from continuing operations were $448 million for
the first quarter of 2011, compared with $276 million in the same period
of 2010. Net capital expenditures (including proceeds from the sale of
assets) from continuing operations were $377 million, up 66% from $227
million in the same period of 2010. The increase reflects investments to
refresh and grow the rental fleet.
Cash Flow
Operating cash flow from continuing operations through March 31, 2011
was $218 million, down from $271 million in the same period of 2010, due
to increased working capital needs. Total cash generated (including
proceeds from used vehicle sales) from continuing operations through
March 31, 2011, was $304 million, compared with $336 million in the same
period of 2010. Free cash flow from continuing operations through March
31, 2011 was negative $10 million, down from a positive $136 million for
the same period of 2010, primarily due to increased vehicle investments.
Leverage
Balance sheet debt as of March 31, 2011 increased by $62 million
compared with year-end 2010, due primarily to increased investments in
vehicles and acquisition activity. The leverage ratio for balance sheet
debt as of March 31, 2011 was 195%, compared with 196% at year-end 2010.
Total obligations to equity as of March 31, 2011 were 202%, compared
with 203% at year-end 2010.
2011 Outlook
“We expect continuing strong revenue and earnings performance from
organic growth in many areas of our business and increasing
contributions from recent acquisitions, including four announced since
early December,” said Mr. Swienton, commenting on Ryder’s 2011 outlook.
“Our Fleet Management Solutions business should continue to produce
strong results from the commercial rental and used vehicles sales
product lines and we remain on track to deliver organic expansion of
lease fleet levels beginning in the second half of the year. The
positive revenue trends in our Supply Chain Solutions business are
expected to continue. SCS results, however, will be adversely affected
by customer business impacts, especially announced automotive production
cuts from one significant customer related to recent natural disasters
in Japan. Our strong balance sheet continues to enable us to invest in
acquisitions, implement more efficient technologies, develop product
improvements and innovations, and expand sales and marketing
capabilities. Taken together, our operational performance and strategic
actions have Ryder well-aligned to deliver substantially improved
results in the near term, while advancing our competitive position and
ability to leverage higher earnings in future periods.”
He continued, “The second quarter and full-year forecast ranges
assume the continued impact of automotive production cuts primarily with
one significant customer related to the Japanese disasters. We estimate
the downside impact to be $0.10 to $0.15 per share for the remainder of
the year. Based on currently available information, we expect a ramp up
of production levels in the second half of the year; however, these
production levels are subject to change as conditions develop. Even with
this anticipated negative impact, we are still raising our full-year
2011 earnings forecast to a range of $2.90 to $3.00 per share, up from a
previous range of $2.80 to $2.90. Additionally, we have established a
second quarter earnings forecast of $0.72 to $0.77 per share.”
About Ryder
Ryder System, Inc. is a FORTUNE 500® commercial
transportation, logistics and supply chain management solutions company.
Ryder’s stock (NYSE: R) is a component of the Dow Jones Transportation
Average and the Standard & Poor’s 500 Index. The Company’s financial
performance is reported in the following three, inter-related business
segments:
-
Fleet Management Solutions – The FMS business segment combines
several capabilities into a comprehensive package that provides
one-stop outsourcing of the acquisition, financing, maintenance,
management, and disposal of vehicles. Ryder’s commercial rental
service offers customers a method to expand their fleets in order to
address short-term capacity needs.
-
Supply Chain Solutions – The SCS business segment offers a
broad range of innovative logistics management services that are
designed to optimize a customer’s supply chain and address key
customer business requirements. These solutions involve strategically
designed processes that direct the movement of materials and related
information from the acquisition of raw materials to the delivery of
finished products to the end user.
-
Dedicated Contract Carriage – The DCC business segment provides
customers with vehicles, drivers, management, and administrative
support, with the assets committed to a specific customer for a
contractual term. DCC supports customers with both basic and
sophisticated logistics and transportation needs, including routing
and scheduling, specialized driver services, and logistics engineering
support.
Pre-Tax Earnings: Ryder’s primary
measurement of business segment financial performance, pre-tax earnings
from continuing operations (pre-tax earnings), allocates Central Support
Services to each business segment and excludes restructuring and other
items.
Capital Expenditures: In Ryder’s
business, capital expenditures are generally used to purchase revenue
earning equipment (trucks, tractors, and trailers) primarily to support
the full service lease product line and secondarily to support the
commercial rental product line within Ryder’s FMS business segment. The
level of capital required to support the full service lease product line
varies directly with customer contract signings for replacement vehicles
and growth. These contracts are long-term agreements that result in
ongoing revenues and cash flows to Ryder, typically over a three- to
ten-year term. The commercial rental product line utilizes capital for
the purchase of vehicles to replenish and expand the Company’s fleet
available for shorter-term use by contractual or occasional customers.
For more information on Ryder System, Inc., visit www.ryder.com.
Note Regarding Forward-Looking Statements: 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 to the many risks and uncertainties
inherent in our business that could cause actual results and events to
differ materially from those in the forward-looking statements.
Important factors that could cause such differences include, among
others, a slowdown of the economic recovery and decreases in
freight demand, our ability to obtain adequate profit margins for our
services, our inability to maintain current pricing levels due to soft
economic conditions, uncertainty or decline in economic and market
conditions affecting contractual lease demand, decreases in market
demand in the commercial rental market and the sale of used vehicles,
competition from other service providers, customer retention levels,
unexpected volume declines, loss of key customers in the Supply Chain
Solutions (SCS) business segment, unexpected reserves or write-offs due
to the deterioration of the credit worthiness or bankruptcy of
customers, changes in financial, tax or regulatory requirements or
changes in customers’ business environments that will limit their
ability to commit to long-term vehicle leases, a decrease in credit
ratings, increased debt costs resulting from volatile financial markets,
inability to achieve planned synergies and customer retention levels
from acquisitions, labor strikes or work stoppages affecting our or our
customers’ business operations, driver shortages and increasing driver
costs, adequacy of accounting estimates, reserves and accruals
particularly with respect to pension, taxes, insurance and revenue, a
decline in pension plan returns, changes in obligations relating to
multi-employer plans, sudden or unusual changes in fuel prices, our
ability to manage our cost structure, new accounting pronouncements,
rules or interpretations, changes in government regulations, adverse
impacts of recently enacted regulations regarding vehicle emissions, any
unanticipated or unrealized effects of the recent Japan earthquake and
tsunami on our operations, customers, and vehicle suppliers, and the
risks described in our filings with the Securities and Exchange
Commission. The risks included here are not exhaustive. New risks emerge
from time to time and it is not possible for management to predict all
such risk factors or to assess the impact of such risks on our business.
Accordingly, we undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Note Regarding Non-GAAP Financial Measures: This news release
includes certain non-GAAP financial measures as defined under SEC rules.
Additional information regarding non-GAAP financial measures can be
found in our investor presentation for the quarter and in our reports
filed with the SEC, which are available in the Investors area of our
website at www.ryder.com.
Conference Call and Webcast Information:
Ryder’s earnings conference call and webcast is scheduled for Tuesday,
April 26, 2011, from 11:00 a.m. to 12:00 noon Eastern Time. Speakers
will be Chairman and Chief Executive Officer Greg Swienton and Executive
Vice President and Chief Financial Officer Art Garcia.
-
To join the conference call live:
Begin 10 minutes prior to the conference by dialing the audio phone
number 1-888-398-5319 (outside U.S. dial 1-773-681-5795)
using the Passcode: RYDER and Conference Leader: Bob Brunn.
Then, access the presentation via the Net Conference website at www.mymeetings.com/nc/join/
using the Conference Number: RH6463673 and Passcode: RYDER.
To access audio replays of the conference and
view a presentation of Ryder’s earnings results: Dial 1-866-415-8358
(outside U.S. dial 1-203-369-0699), then view the presentation by
visiting the Investors area of Ryder’s website at http://investors.ryder.com.
A podcast of the call will also be available online within 24 hours
after the end of the call at http://investors.ryder.com.
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RYDER SYSTEM, INC. AND SUBSIDIARIES
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CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS - UNAUDITED
|
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Periods ended March 31, 2011 and 2010
|
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(In millions, except per share amounts)
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|
|
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|
Three Months
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|
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2011
|
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2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,425.4
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|
|
1,219.9
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|
|
|
|
|
|
|
|
|
Operating expense (exclusive of items shown separately)
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|
|
694.4
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577.6
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|
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Salaries and employee-related costs
|
|
|
365.4
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|
|
304.7
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|
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Subcontracted transportation
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|
|
83.1
|
|
|
60.3
|
|
|
Depreciation expense
|
|
|
205.9
|
|
|
211.0
|
|
|
Gains on vehicle sales, net
|
|
|
(12.3
|
)
|
|
(4.5
|
)
|
|
Equipment rental
|
|
|
14.2
|
|
|
16.5
|
|
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Interest expense
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|
|
34.4
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|
|
33.3
|
|
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Miscellaneous income, net
|
|
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(4.1
|
)
|
|
(1.5
|
)
|
|
Restructuring and other charges, net
|
|
|
0.8
|
|
|
-
|
|
|
|
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|
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1,381.8
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|
|
1,197.4
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|
|
|
|
|
|
|
|
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Earnings from continuing operations before income taxes
|
|
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43.6
|
|
|
22.5
|
|
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Provision for income taxes
|
|
|
(17.8
|
)
|
|
(9.6
|
)
|
|
Earnings from continuing operations
|
|
|
25.9
|
|
|
12.9
|
|
|
Loss from discontinued operations, net of tax
|
|
|
(0.7
|
)
|
|
(0.5
|
)
|
|
Net earnings
|
|
$
|
25.1
|
|
|
12.4
|
|
|
|
|
|
|
|
|
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Earnings (loss) per common share - Diluted
|
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|
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|
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Continuing operations
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$
|
0.50
|
|
|
0.24
|
|
|
|
Discontinued operations
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|
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(0.02
|
)
|
|
(0.01
|
)
|
|
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Net earnings
|
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$
|
0.48
|
|
|
0.23
|
|
|
|
|
|
|
|
|
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Weighted-average shares outstanding - Diluted
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|
|
51.0
|
|
|
52.7
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Memo:
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Comparable earnings per share from continuing operations:
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EPS from continuing operations
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$
|
0.50
|
|
|
0.24
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|
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Restructuring and other charges
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|
|
0.01
|
|
|
-
|
|
|
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Comparable EPS from continuing operations
|
|
$
|
0.51
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|
|
0.24
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|
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|
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|
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|
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Note: Amounts may not be additive due to rounding.
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RYDER SYSTEM, INC. AND SUBSIDIARIES
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CONSOLIDATED CONDENSED BALANCE SHEETS - UNAUDITED
|
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(Dollars in millions)
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|
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|
|
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|
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March 31,
|
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December 31,
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|
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2011
|
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2010
|
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|
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Assets:
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|
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|
|
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Cash and cash equivalents
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|
$
|
155.6
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|
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213.1
|
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Other current assets
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|
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889.5
|
|
|
810.2
|
|
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Revenue earning equipment, net
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|
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4,457.9
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|
|
4,201.2
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|
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Operating property and equipment, net
|
|
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615.6
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|
|
606.8
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Other assets
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863.6
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|
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821.0
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$
|
6,982.2
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6,652.4
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|
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Liabilities and shareholders' equity:
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|
|
|
|
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|
|
|
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|
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Short-term debt and current portion of long-term debt
|
|
$
|
468.0
|
|
|
420.1
|
|
|
Other current liabilities
|
|
|
912.4
|
|
|
711.4
|
|
|
Long-term debt
|
|
|
2,341.1
|
|
|
2,326.9
|
|
|
Other non-current liabilities (including deferred income taxes)
|
|
|
1,820.4
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|
|
1,789.7
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|
|
Shareholders' equity
|
|
|
1,440.3
|
|
|
1,404.3
|
|
|
|
|
$
|
6,982.2
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|
|
6,652.4
|
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SELECTED KEY RATIOS AND METRICS
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|
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March 31,
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|
December 31,
|
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|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Debt to equity
|
|
|
195
|
%
|
|
196
|
%
|
|
Total obligations to equity *
|
|
|
202
|
%
|
|
203
|
%
|
|
Effective interest rate (average cost of debt)
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|
|
5.0
|
%
|
|
5.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
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|
|
2011
|
|
2010
|
|
Cash provided by operating activities from continuing operations
|
|
$
|
217.6
|
|
|
271.5
|
|
|
Free cash flow *
|
|
|
(9.6
|
)
|
|
135.9
|
|
|
Capital expenditures paid
|
|
|
313.2
|
|
|
200.1
|
|
|
|
|
|
|
|
|
Capital expenditures (accrual basis)
|
|
|
448.0
|
|
|
276.4
|
|
|
Less proceeds from sales (primarily revenue earning equipment)
|
|
|
(71.2
|
)
|
|
(49.0
|
)
|
|
Net capital expenditures
|
|
$
|
376.8
|
|
|
227.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended March 31,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Return on average shareholders' equity
|
|
|
9.3
|
%
|
|
4.8
|
%
|
|
Return on average assets
|
|
|
2.0
|
%
|
|
1.1
|
%
|
|
Adjusted return on capital *
|
|
|
5.1
|
%
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Non-GAAP financial measure; see reconciliation to closest GAAP
financial measure included within this release.
|
|
|
|
|
|
|
|
Note: Amounts may not be additive due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
BUSINESS SEGMENT REVENUE AND EARNINGS - UNAUDITED
|
|
Periods ended March 31, 2011 and 2010
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
2011
|
|
2010
|
|
B(W)
|
|
Revenue:
|
|
|
|
|
|
|
|
Fleet Management Solutions:
|
|
|
|
|
|
|
|
Full service lease
|
|
$
|
483.3
|
|
|
479.4
|
|
|
1
|
%
|
|
Contract maintenance
|
|
|
38.1
|
|
|
39.8
|
|
|
(4
|
)%
|
|
Contractual revenue
|
|
|
521.4
|
|
|
519.2
|
|
|
-
|
|
|
Contract-related maintenance
|
|
|
44.7
|
|
|
40.2
|
|
|
11
|
%
|
|
Commercial rental
|
|
|
135.7
|
|
|
101.6
|
|
|
34
|
%
|
|
Other
|
|
|
17.3
|
|
|
16.4
|
|
|
5
|
%
|
|
Fuel
|
|
|
261.1
|
|
|
206.6
|
|
|
26
|
%
|
|
Total Fleet Management Solutions
|
|
|
980.1
|
|
|
884.0
|
|
|
11
|
%
|
|
Supply Chain Solutions
|
|
|
401.0
|
|
|
294.2
|
|
|
36
|
%
|
|
Dedicated Contract Carriage
|
|
|
134.7
|
|
|
116.3
|
|
|
16
|
%
|
|
Eliminations
|
|
|
(90.5
|
)
|
|
(74.6
|
)
|
|
(21
|
)%
|
|
Total revenue
|
|
$
|
1,425.4
|
|
|
1,219.9
|
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenue: *
|
|
|
|
|
|
|
|
Fleet Management Solutions
|
|
$
|
719.0
|
|
|
677.4
|
|
|
6
|
%
|
|
Supply Chain Solutions
|
|
|
324.3
|
|
|
238.2
|
|
|
36
|
%
|
|
Dedicated Contract Carriage
|
|
|
128.4
|
|
|
112.0
|
|
|
15
|
%
|
|
Eliminations
|
|
|
(42.6
|
)
|
|
(40.0
|
)
|
|
(6
|
)%
|
|
Total operating revenue
|
|
$
|
1,129.1
|
|
|
987.6
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business segment earnings:
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes:
|
|
|
|
|
|
|
|
Fleet Management Solutions
|
|
$
|
38.6
|
|
|
21.7
|
|
|
78
|
%
|
|
Supply Chain Solutions
|
|
|
12.1
|
|
|
7.0
|
|
|
72
|
%
|
|
Dedicated Contract Carriage
|
|
|
7.4
|
|
|
7.4
|
|
|
-
|
|
|
Eliminations
|
|
|
(4.9
|
)
|
|
(4.7
|
)
|
|
(4
|
)%
|
|
|
|
|
53.1
|
|
|
31.4
|
|
|
69
|
%
|
|
Unallocated Central Support Services
|
|
|
(8.7
|
)
|
|
(8.9
|
)
|
|
2
|
%
|
|
Earnings from continuing operations before restructuring,
|
|
|
|
|
|
|
|
other items and income taxes
|
|
|
44.4
|
|
|
22.5
|
|
|
97
|
%
|
|
Restructuring and other charges, net and other items
|
|
|
(0.8
|
)
|
|
-
|
|
|
NM
|
|
|
Earnings from continuing operations before income taxes
|
|
|
43.6
|
|
|
22.5
|
|
|
94
|
%
|
|
Provision for income taxes
|
|
|
(17.8
|
)
|
|
(9.6
|
)
|
|
(85
|
)%
|
|
Earnings from continuing operations
|
|
$
|
25.9
|
|
|
12.9
|
|
|
101
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Non-GAAP financial measure.
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not be additive due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
BUSINESS SEGMENT INFORMATION - UNAUDITED
|
|
Periods ended March 31, 2011 and 2010
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
2011
|
|
2010
|
|
B(W)
|
|
|
|
|
|
|
|
|
|
Fleet Management Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
980.1
|
|
|
884.0
|
|
|
11
|
%
|
|
Fuel revenue
|
|
|
(261.1
|
)
|
|
(206.6
|
)
|
|
26
|
%
|
|
Operating revenue *
|
|
$
|
719.0
|
|
|
677.4
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
Segment earnings before income taxes
|
|
$
|
38.6
|
|
|
21.7
|
|
|
78
|
%
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of total revenue
|
|
|
3.9
|
%
|
|
2.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of operating revenue *
|
|
|
5.4
|
%
|
|
3.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply Chain Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
401.0
|
|
|
294.2
|
|
|
36
|
%
|
|
Subcontracted transportation
|
|
|
(76.7
|
)
|
|
(56.0
|
)
|
|
37
|
%
|
|
Operating revenue *
|
|
$
|
324.3
|
|
|
238.2
|
|
|
36
|
%
|
|
|
|
|
|
|
|
|
|
Segment earnings before income taxes
|
|
$
|
12.1
|
|
|
7.0
|
|
|
72
|
%
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of total revenue
|
|
|
3.0
|
%
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of operating revenue *
|
|
|
3.7
|
%
|
|
2.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Fuel costs
|
|
$
|
26.5
|
|
|
18.5
|
|
|
(43
|
%)
|
|
|
|
|
|
|
|
|
|
Dedicated Contract Carriage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
134.7
|
|
|
116.3
|
|
|
16
|
%
|
|
Subcontracted transportation
|
|
|
(6.3
|
)
|
|
(4.3
|
)
|
|
47
|
%
|
|
Operating revenue *
|
|
$
|
128.4
|
|
|
112.0
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
Segment earnings before income taxes
|
|
$
|
7.4
|
|
|
7.4
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of total revenue
|
|
|
5.5
|
%
|
|
6.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of operating revenue *
|
|
|
5.8
|
%
|
|
6.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Memo: Fuel costs
|
|
$
|
27.3
|
|
|
19.4
|
|
|
(41
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Non-GAAP financial measure.
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not be additive due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
BUSINESS SEGMENT INFORMATION - UNAUDITED
|
|
KEY PERFORMANCE INDICATORS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
Full service lease
|
|
|
|
|
|
|
|
Average fleet count
|
|
111,600
|
|
|
114,400
|
|
|
|
|
End of period fleet count
|
|
111,800
|
|
|
112,700
|
|
|
|
|
Miles/unit per day change - % (a)
|
|
3.2
|
%
|
|
1.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial rental
|
|
|
|
|
|
|
|
Average fleet count
|
|
30,900
|
|
|
27,800
|
|
|
|
|
End of period fleet count
|
|
33,200
|
|
|
28,800
|
|
|
|
|
Rental utilization - power units
|
|
72.5
|
%
|
|
68.6
|
%
|
|
|
|
Rental rate change - % (b)
|
|
12.1
|
%
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Used vehicle sales (UVS)
|
|
|
|
|
|
|
|
Average UVS inventory
|
|
5,200
|
|
|
6,900
|
|
|
|
|
End of period inventory count
|
|
5,000
|
|
|
6,800
|
|
|
|
|
Used vehicles sold
|
|
4,100
|
|
|
4,700
|
|
|
|
|
UVS pricing change - % (c)
|
|
|
|
|
|
|
|
Tractors
|
|
42
|
%
|
|
(4
|
)%
|
|
|
|
Trucks
|
|
44
|
%
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Represents the percentage change compared to prior year period in
miles driven per vehicle per workday on US lease power units.
|
|
(b)
|
Represents percentage change compared to prior year period in
average global rental rate per day on power units using constant
currency.
|
|
(c)
|
Represents percentage change compared to prior year period in
average sales proceeds on used vehicle sales using constant currency.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING REVENUE RECONCILIATION
|
|
Three months ended March 31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
1,425.4
|
|
|
1,219.9
|
|
|
|
|
|
|
Fuel services and subcontracted transportation revenue
|
|
|
(344.1
|
)
|
|
(266.9
|
)
|
|
|
|
|
|
Fuel eliminations
|
|
|
47.9
|
|
|
34.6
|
|
|
|
|
|
|
Operating revenue *
|
|
$
|
1,129.1
|
|
|
987.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEBT TO EQUITY RECONCILIATION
|
|
March 31,
|
|
|
|
December 31,
|
|
|
|
|
|
2011
|
|
% to Equity
|
|
2010
|
|
% to Equity
|
|
|
|
|
|
|
|
|
|
|
|
On-balance sheet debt
|
|
$
|
2,809.1
|
|
195%
|
|
$
|
2,747.0
|
|
196%
|
|
Off-balance sheet debt - PV of minimum lease payments and guaranteed
residual values under operating leases for vehicles (a)
|
|
|
98.8
|
|
|
|
|
99.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total obligations *
|
|
$
|
2,907.9
|
|
202%
|
|
|
2,846.8
|
|
203%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW RECONCILIATION
|
|
Three months ended March 31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities from continuing operations
|
|
$
|
217.6
|
|
|
271.5
|
|
|
|
|
|
|
Proceeds from sales (primarily revenue earning equipment)
|
|
|
71.2
|
|
|
49.0
|
|
|
|
|
|
|
Collections on direct finance leases
|
|
|
14.8
|
|
|
15.6
|
|
|
|
|
|
|
Total cash generated *
|
|
|
303.6
|
|
|
336.0
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(313.2
|
)
|
|
(200.1
|
)
|
|
|
|
|
|
Free cash flow *
|
|
$
|
(9.6
|
)
|
|
135.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETURN ON CAPITAL RECONCILIATION
|
|
Twelve months ended March 31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (12-month rolling period)
|
|
$
|
130.9
|
|
|
67.5
|
|
|
|
|
|
|
+ Restructuring and other items
|
|
|
6.8
|
|
|
22.2
|
|
|
|
|
|
|
+ Income taxes
|
|
|
68.7
|
|
|
52.0
|
|
|
|
|
|
|
Adjusted earnings before income taxes
|
|
|
206.5
|
|
|
141.7
|
|
|
|
|
|
|
+ Adjusted interest expense (b)
|
|
|
134.0
|
|
|
144.0
|
|
|
|
|
|
|
- Adjusted income taxes
|
|
|
(131.9
|
)
|
|
(116.7
|
)
|
|
|
|
|
|
= Adjusted net earnings for ROC (numerator)
|
|
$
|
208.7
|
|
|
168.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total debt
|
|
$
|
2,591.4
|
|
|
2,593.0
|
|
|
|
|
|
|
Average off-balance sheet debt
|
|
|
109.1
|
|
|
132.7
|
|
|
|
|
|
|
Average shareholders' equity
|
|
|
1,402.9
|
|
|
1,415.9
|
|
|
|
|
|
|
Adjustment to equity (c)
|
|
|
(1.3
|
)
|
|
10.6
|
|
|
|
|
|
|
Adjusted average total capital (denominator)
|
|
$
|
4,102.1
|
|
|
4,152.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted ROC *
|
|
|
5.1
|
%
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
(a) Discounted at the incremental borrowing rate at lease inception.
|
|
(b) Interest expense includes implied interest on off-balance sheet
vehicle obligations.
|
|
(c) Represents comparable earnings items for those periods.
|
|
|
|
|
|
|
|
|
|
|
|
* Non-GAAP financial measure.
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not be additive due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED
|
|
(In millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
2011
|
|
|
|
Reported
|
|
|
|
Comparable
|
|
|
|
Earnings
|
|
Adjustments
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,425.4
|
|
|
-
|
|
|
|
1,425.4
|
|
|
|
|
|
|
|
|
|
|
Operating expense
|
|
|
694.4
|
|
|
|
|
|
694.4
|
|
|
Salaries and employee-related costs
|
|
|
365.4
|
|
|
|
|
|
365.4
|
|
|
Subcontracted transportation
|
|
|
83.1
|
|
|
|
|
|
83.1
|
|
|
Depreciation expense
|
|
|
205.9
|
|
|
|
|
|
205.9
|
|
|
Gains on vehicle sales, net
|
|
|
(12.3
|
)
|
|
|
|
|
(12.3
|
)
|
|
Equipment rental
|
|
|
14.2
|
|
|
|
|
|
14.2
|
|
|
Interest expense
|
|
|
34.4
|
|
|
|
|
|
34.4
|
|
|
Miscellaneous income, net
|
|
|
(4.1
|
)
|
|
|
|
|
(4.1
|
)
|
|
Restructuring and other charges, net (a)
|
|
|
0.8
|
|
|
(0.8
|
)
|
|
|
-
|
|
|
|
|
|
1,381.8
|
|
|
(0.8
|
)
|
|
|
1,381.0
|
|
|
Earnings from continuing operations before income taxes
|
|
|
43.6
|
|
|
0.8
|
|
|
|
44.4
|
|
|
Provision for income taxes
|
|
|
(17.8
|
)
|
|
(0.3
|
)
|
|
|
(18.1
|
)
|
|
Earnings from continuing operations
|
|
$
|
25.9
|
|
|
0.5
|
|
|
|
26.3
|
|
|
|
|
|
|
|
|
|
|
Tax rate on continuing operations
|
|
|
40.7
|
%
|
|
|
|
|
40.7
|
%
|
|
|
|
|
|
|
|
|
|
Earnings per common share - Diluted:
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.50
|
|
|
0.01
|
|
|
$
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes regarding adjustments:
|
|
|
|
|
|
|
|
(a) Restructuring charges for acquisition-related severance and
equipment contract termination costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not be additive due to rounding.
|
|
|
|
|
|
|
|
|
Source: Ryder System, Inc.