-
Q1 EPS from Continuing Operations Up 36% to $0.68
-
Q1 Comparable EPS from Continuing Operations Up 16% to $0.59
-
Q1 Total Revenue Up 8%; Operating Revenue Grows 9%
-
Full-Year 2012 Comparable EPS Forecast Raised to $4.02 to $4.12
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,
2012 were $0.68, compared with $0.50 in the year-earlier period.
Earnings from continuing operations were $34.9 million, compared with
$25.9 million in the year-earlier period. Earnings per diluted share and
earnings from continuing operations in the first quarter of 2012
included a net benefit of $0.09 and $4.3 million, respectively, related
to a tax item, partially offset by acquisition-related restructuring
costs. Earnings per diluted share and net earnings for the year-earlier
period included a restructuring charge of $0.01 and $0.5 million,
respectively. Excluding these items, comparable earnings per diluted
share from continuing operations for the first quarter of 2012 were
$0.59, up 16% from $0.51 in the same period of 2011. Comparable earnings
from continuing operations of $30.6 million for the first quarter of
2012 were up 16% from $26.3 million in the year-earlier period. The
increase in comparable earnings primarily reflects the benefit of a
Fleet Management Solutions (FMS) acquisition, stronger used vehicle
sales results and organic growth in commercial rental and in the Supply
Chain Solutions (SCS) segment.
Total revenue for the first quarter of 2012 was $1.54 billion, up 8%
from $1.43 billion in the same period last year, reflecting organic
growth, the benefit of acquisitions, and fuel services. Operating
revenue (revenue excluding FMS fuel and all subcontracted
transportation), was $1.23 billion, up 9% compared with $1.13 billion in
the year-earlier period. FMS business segment total revenue increased 9%
due primarily to higher operating revenue, and to a lesser extent higher
fuel services revenue. FMS operating revenue increased 10% due primarily
to the Hill Hire acquisition, and stronger organic commercial rental and
full service lease revenue. SCS business segment total and operating
revenue both increased 7% due to improved freight volumes and new
business.
Net earnings per diluted share (including discontinued operations) for
the three-month period ended March 31, 2012 were $0.67 versus $0.48 in
the year-earlier period. Earnings per diluted share from discontinued
operations (previously announced in 2009) totaled a loss of $0.01 in the
first quarter of 2012, compared with a loss of $0.02 in the same period
of the prior year. Net earnings for the first quarter of 2012 were $34.3
million versus $25.1 million in the year-earlier period.
Commenting on the Company’s first quarter 2012 performance, Ryder
Chairman and CEO Greg Swienton said, “We delivered a solid quarter that
was somewhat better than expected in an economy that is recovering only
modestly. We are pleased that our largest product line, full service
lease, showed organic fleet growth for the second consecutive quarter.
Last year’s acquisition of Hill Hire in the United Kingdom also
contributed significantly to our results for the quarter. Used vehicle
sales performance improved due to stronger pricing. Supply Chain
Solutions earnings showed better than expected performance due to higher
volumes and new business, including especially strong performance from
our dedicated contract carriage services. Commercial rental performance
included a double-digit revenue increase driven by greater demand and
better pricing, although utilization was lower than anticipated on a
larger commercial rental fleet. Overall, our solid performance reflected
effective execution by our team across the key areas of our business.”
First Quarter Business Segment Operating Results
Fleet Management Solutions (FMS)
In the FMS business segment, total revenue in the first quarter of 2012
was $1.07 billion, up 9% compared with the year-earlier period. Fuel
services revenue in the first quarter of 2012 increased 7% compared with
the same period in 2011 due to higher fuel prices. Operating revenue
(revenue excluding fuel) in the first quarter of 2012 was $792.7
million, up 10% compared with the year-earlier period. Full service
lease revenue increased 6% in the first quarter of 2012 due to
acquisitions, higher prices on replacement vehicles, and organic fleet
growth. Commercial rental revenue increased 26% reflecting higher
pricing and improved global market demand, as well as acquisitions.
The FMS business segment’s earnings before tax (EBT) were $50.7 million
in the first quarter of 2012, up 20% compared with $42.4 million in the
same period of 2011. Increased earnings reflect the benefit of the Hill
Hire acquisition closed in June of 2011, organic growth of the
contractual lease and maintenance fleets, improved used vehicle sales
results, and better commercial rental performance. These items were
partially offset by higher maintenance costs to service a slightly older
lease fleet, including increased vehicle outservicing activity, and
commission expense related to new sales. Used vehicle sales results
benefited from higher pricing and volume, partially offset by higher
carrying costs on a larger inventory. Commercial rental performance
improved as a result of higher pricing and increased market demand on a
31% larger average fleet (13% excluding acquisitions). While total
demand grew strongly, the increase was somewhat less than anticipated.
This resulted in power fleet utilization that was 68.9% for the first
quarter of 2012, down from 72.5% in the year-earlier period, on a larger
fleet. Business segment earnings before tax as a percentage of operating
revenue were 6.4% in the first quarter of 2012, up 50 basis points from
5.9% in the same quarter a year ago.
Supply Chain Solutions (SCS)
In the SCS business segment, which includes all activity related to the
Company’s dedicated contract carriage services, first quarter 2012 total
revenue was $571.9 million, up 7% from the comparable period in 2011.
First quarter 2012 operating revenue (revenue excluding subcontracted
transportation) was $484.6 million, up 7% compared with the comparable
period a year ago. SCS total revenue and operating revenue comparisons
benefited from higher fuel cost pass-throughs, increased volumes, and
new business. Total and operating revenue also benefited from the Scully
Companies acquisition, closed in January of 2011. Revenue growth was
largely driven by higher volumes in the automotive, retail and consumer
packaged goods industry sectors, including increased services related to
dedicated contract carriage.
The SCS business segment’s earnings before tax of $21.9 million, rose 8%
compared with $20.2 million in the same quarter of 2011, driven by
higher volumes and new business. First quarter 2012 earnings before tax
for the business segment as a percentage of operating revenue remained
unchanged from the year-earlier period at 4.5%.
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 2012, the
unallocated portion of CSS costs was $9.5 million, up from $8.7 million
in the year-earlier period, primarily driven by planned higher headcount.
Non-Service Pension Costs
Beginning in 2012, the non-service components of pension costs have been
excluded from segment earnings before tax in order to more accurately
reflect the operating performance of the business segments. Prior year
segment earnings before tax have been recast to conform to the current
year presentation. Non-service pension costs totaled $8.0 million in the
first quarter of 2012, up from $4.5 million in the year-earlier period.
This reflected primarily lower than expected pension asset returns in
2011, and lower assumed returns for 2012.
Restructuring and Other Items
Pre-tax restructuring charges totaled $0.9 million ($0.6 million after
tax) or $0.01 per diluted share in the first quarter of 2012, and $0.8
million ($0.5 million after tax) or $0.01 per diluted share in the first
quarter of 2011. The 2012 charges reflect restructuring costs associated
with the Hill Hire integration, which is expected to be completed in the
second quarter of 2012. The 2011 charges reflect restructuring charges
associated with the Scully Companies acquisition.
Income Taxes
The Company’s effective income tax rate from continuing operations for
the first quarter of 2012 was 26.9% of earnings before tax compared with
40.7% in the year-earlier period. The current period income tax rate was
positively impacted by $5.0 million (10.4% of earnings before tax) from
the favorable resolution of a tax item related to prior years, and a
higher proportionate amount of earnings in lower rate jurisdictions. The
year-earlier period income tax rate was adversely impacted by a tax law
change in Illinois of $1.2 million (2.8% of earnings before tax).
Capital Expenditures
Capital expenditures from continuing operations were $787 million for
the first quarter of 2012, compared with $448 million in the same period
of 2011. Net capital expenditures (including proceeds from the sale of
assets) from continuing operations were $693 million, compared with $377
million in the same period of 2011. The increase in capital expenditures
reflects planned investments primarily to refresh and grow the full
service lease fleet.
Cash Flow
Operating cash flow from continuing operations through March 31, 2012
was $186 million, down from $218 million in the same period of 2011, due
to increased working capital needs. Total cash generated (including
proceeds from used vehicle sales) from continuing operations through
March 31, 2012, was $296 million, compared with $304 million in the same
period of 2011. As expected, free cash flow from continuing operations
through March 31, 2012 was negative $175 million, compared with negative
$10 million for the same period of 2011, due primarily to refreshment
and growth of the full service lease fleet.
Leverage
Balance sheet debt as of March 31, 2012 increased by $211 million
compared with year-end 2011, due primarily to increased investments in
vehicles. The leverage ratio for balance sheet debt as of March 31, 2012
was 262%, compared with 257% at year-end 2011. Total obligations to
equity as of March 31, 2012 were 267%, compared with 261% at year-end
2011. Total obligations to equity remain within Ryder’s long-term target
range of 250% to 300%.
2012 Outlook
Commenting on the Company’s outlook, Mr. Swienton said, “We are on track
to reach our overall plans for the year, and we remain focused on
leveraging secular trends that create long-term growth opportunities for
the business. Looking ahead, we expect our full service lease fleet to
continue growing, reflecting increased new and renewal sales activity.
Commercial rental should also continue to demonstrate solid growth,
although somewhat less robust than previously anticipated. We expect
used vehicle sales results to be better than our original forecast, due
to higher sales activity. In Supply Chain Solutions, increased new
business and volume levels should contribute to higher than previously
expected earnings. Based on our first quarter performance and current
market factors, we are raising our full-year 2012 earnings forecast to a
new range of $4.02 to $4.12 per share. We have also established a second
quarter earnings forecast of $1.07 to $1.12 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 two, 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. The segment now includes all activity
related to the Company’s dedicated solution (dedicated contract
carriage). 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.
Earnings Before Tax (EBT): Ryder’s
primary measurement of business segment financial performance, earnings
before tax (EBT), allocates Central Support Services to each business
segment and excludes restructuring and other items, as well as
non-service pension costs.
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,
including comparable earnings from continuing operations, 2012
comparable EPS forecasts, operating revenue, total cash generated, free
cash flow, total obligations, and the ratios based on these financial
measures, as well as the other financial measures identified in the
tables following this release. 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 24, 2012, 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: and Conference Leader: Bob Brunn.
Then, access the presentation via the Net Conference website at www.mymeetings.com/nc/join/
using the Conference Number: RH7706506 and Passcode: RYDER.
-
To access audio replays of the conference and
view a presentation of Ryder’s earnings results: Dial 1-800-253-1051
(outside U.S. dial 1-402-220-9703), 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.
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
|
|
|
|
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS - UNAUDITED
|
|
Periods ended March 31, 2012 and 2011
|
|
(In millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
Lease and rental revenues
|
|
$
|
637.9
|
|
|
579.4
|
|
|
Services revenue
|
|
|
678.4
|
|
|
632.7
|
|
|
Fuel services revenue
|
|
|
220.1
|
|
|
213.2
|
|
|
|
Total revenues
|
|
|
1,536.3
|
|
|
1,425.4
|
|
|
|
|
|
|
|
|
|
Cost of lease and rental
|
|
|
455.6
|
|
|
408.5
|
|
|
Cost of services
|
|
|
577.9
|
|
|
537.9
|
|
|
Cost of fuel services
|
|
|
215.6
|
|
|
209.0
|
|
|
Other operating expenses
|
|
|
34.2
|
|
|
34.6
|
|
|
Selling, general and administrative expenses
|
|
|
196.0
|
|
|
173.1
|
|
|
Gains on vehicle sales, net
|
|
|
(22.0
|
)
|
|
(12.3
|
)
|
|
Interest expense
|
|
|
34.8
|
|
|
34.4
|
|
|
Miscellaneous income, net
|
|
|
(4.5
|
)
|
|
(4.1
|
)
|
|
Restructuring and other charges, net
|
|
|
0.9
|
|
|
0.8
|
|
|
|
|
|
|
1,488.6
|
|
|
1,381.8
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
|
47.7
|
|
|
43.6
|
|
|
Provision for income taxes
|
|
|
(12.8
|
)
|
|
(17.8
|
)
|
|
Earnings from continuing operations
|
|
|
34.9
|
|
|
25.9
|
|
|
Loss from discontinued operations, net of tax
|
|
|
(0.6
|
)
|
|
(0.7
|
)
|
|
Net earnings
|
|
$
|
34.3
|
|
|
25.1
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share - Diluted
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.68
|
|
|
0.50
|
|
|
|
Discontinued operations
|
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
|
Net earnings
|
|
$
|
0.67
|
|
|
0.48
|
|
|
|
|
|
|
|
|
|
Earnings per share information - Diluted
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
$
|
34.9
|
|
|
25.9
|
|
|
|
Less: Distributed and undistributed earnings allocated to nonvested
stock
|
|
|
(0.5
|
)
|
|
(0.4
|
)
|
|
|
Earnings from continuing operations available to common stockholders
|
|
$
|
34.4
|
|
|
25.5
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding - Diluted
|
|
|
50.9
|
|
|
51.0
|
|
|
|
|
|
|
|
|
|
Memo:
|
|
|
|
|
|
|
Depreciation expense
|
|
$
|
226.6
|
|
|
205.9
|
|
|
|
Subcontracted transportation
|
|
$
|
87.3
|
|
|
83.1
|
|
|
|
|
|
|
|
|
|
|
Comparable earnings per share from continuing operations:
|
|
|
|
|
|
|
EPS from continuing operations
|
|
$
|
0.68
|
|
|
0.50
|
|
|
|
Tax benefit
|
|
|
(0.10
|
)
|
|
-
|
|
|
|
Restructuring and other charges
|
|
|
0.01
|
|
|
0.01
|
|
|
|
Comparable EPS from continuing operations
|
|
$
|
0.59
|
|
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not be additive due to rounding.
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
|
|
|
|
CONSOLIDATED CONDENSED BALANCE SHEETS - UNAUDITED
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
113.6
|
|
|
104.6
|
|
|
|
Other current assets
|
|
|
1,001.6
|
|
|
983.6
|
|
|
|
Revenue earning equipment, net
|
|
|
5,529.8
|
|
|
5,049.7
|
|
|
|
Operating property and equipment, net
|
|
|
625.5
|
|
|
624.2
|
|
|
|
Other assets
|
|
|
878.1
|
|
|
855.8
|
|
|
|
|
|
$
|
8,148.6
|
|
|
7,617.8
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debt and current portion of long-term debt
|
|
$
|
586.9
|
|
|
274.4
|
|
|
|
Other current liabilities
|
|
|
1,174.9
|
|
|
899.5
|
|
|
|
Long-term debt
|
|
|
3,006.3
|
|
|
3,107.8
|
|
|
|
Other non-current liabilities (including deferred income taxes)
|
|
|
2,009.2
|
|
|
2,018.1
|
|
|
|
Shareholders' equity
|
|
|
1,371.4
|
|
|
1,318.2
|
|
|
|
|
|
$
|
8,148.6
|
|
|
7,617.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED KEY RATIOS AND METRICS
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
Debt to equity
|
|
|
262
|
%
|
|
257
|
%
|
|
|
Total obligations to equity *
|
|
|
267
|
%
|
|
261
|
%
|
|
|
Effective interest rate (average cost of debt)
|
|
|
4.0
|
%
|
|
4.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
|
|
|
|
|
2012
|
|
2011
|
|
|
Cash provided by operating activities from continuing operations
|
|
$
|
186.3
|
|
|
217.6
|
|
|
|
Free cash flow*
|
|
|
(175.0
|
)
|
|
(9.6
|
)
|
|
|
Capital expenditures paid
|
|
|
471.0
|
|
|
313.2
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures (accrual basis)
|
|
$
|
787.4
|
|
|
448.0
|
|
|
|
Less proceeds from sales (primarily revenue earning equipment)
|
|
|
(94.2
|
)
|
|
(71.2
|
)
|
|
|
Net capital expenditures
|
|
$
|
693.2
|
|
|
376.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended March 31,
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
Return on average shareholders' equity
|
|
|
12.7
|
%
|
|
9.3
|
%
|
|
|
Return on average assets
|
|
|
2.4
|
%
|
|
2.0
|
%
|
|
|
Adjusted return on capital *
|
|
|
5.6
|
%
|
|
5.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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, 2012 and 2011
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
2012
|
|
|
2011
|
|
|
B(W)
|
|
Revenue:
|
|
|
|
|
|
|
Fleet Management Solutions:
|
|
|
|
|
|
|
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
|
%
|
|
Fuel
|
|
278.6
|
|
|
261.1
|
|
|
7
|
%
|
|
Total Fleet Management Solutions
|
|
1,071.4
|
|
|
980.1
|
|
|
9
|
%
|
|
Supply Chain Solutions
|
|
571.9
|
|
|
535.8
|
|
|
7
|
%
|
|
Eliminations
|
|
(107.0
|
)
|
|
(90.5
|
)
|
|
(18
|
)%
|
|
Total revenue
|
$
|
1,536.3
|
|
|
1,425.4
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenue: *
|
|
|
|
|
|
|
Fleet Management Solutions
|
$
|
792.7
|
|
|
719.0
|
|
|
10
|
%
|
|
Supply Chain Solutions
|
|
484.6
|
|
|
452.7
|
|
|
7
|
%
|
|
Eliminations
|
|
(48.4
|
)
|
|
(42.6
|
)
|
|
(14
|
)%
|
|
Total operating revenue
|
$
|
1,228.9
|
|
|
1,129.1
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business segment earnings:
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes:
|
|
|
|
|
|
|
Fleet Management Solutions
|
$
|
50.7
|
|
|
42.4
|
|
|
20
|
%
|
|
Supply Chain Solutions
|
|
21.9
|
|
|
20.2
|
|
|
8
|
%
|
|
Eliminations
|
|
(6.5
|
)
|
|
(4.9
|
)
|
|
(32
|
)%
|
|
|
|
66.1
|
|
|
57.6
|
|
|
15
|
%
|
|
Unallocated Central Support Services
|
|
(9.5
|
)
|
|
(8.7
|
)
|
|
(9
|
)%
|
|
Non-service pension costs
|
|
(8.0
|
)
|
|
(4.5
|
)
|
|
(77
|
)%
|
|
Restructuring and other charges, net
|
|
(0.9
|
)
|
|
(0.8
|
)
|
|
13
|
%
|
|
Earnings from continuing operations before income taxes
|
|
47.7
|
|
|
43.6
|
|
|
9
|
%
|
|
Provision for income taxes
|
|
(12.8
|
)
|
|
(17.8
|
)
|
|
28
|
%
|
|
Earnings from continuing operations
|
$
|
34.9
|
|
|
25.9
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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, 2012 and 2011
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
2012
|
|
|
2011
|
|
|
B(W)
|
|
|
|
|
|
|
|
|
|
Fleet Management Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
1,071.4
|
|
|
980.1
|
|
|
9
|
%
|
|
Fuel revenue
|
|
|
(278.6
|
)
|
|
(261.1
|
)
|
|
7
|
%
|
|
Operating revenue *
|
|
$
|
792.7
|
|
|
719.0
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
Segment earnings before income taxes
|
|
$
|
50.7
|
|
|
42.4
|
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of total revenue
|
|
|
4.7
|
%
|
|
4.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of operating revenue *
|
|
|
6.4
|
%
|
|
5.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply Chain Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
571.9
|
|
|
535.8
|
|
|
7
|
%
|
|
Subcontracted transportation
|
|
|
(87.3
|
)
|
|
(83.1
|
)
|
|
5
|
%
|
|
Operating revenue *
|
|
$
|
484.6
|
|
|
452.7
|
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
Segment earnings before income taxes
|
|
$
|
21.9
|
|
|
20.2
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of total revenue
|
|
|
3.8
|
%
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of operating revenue *
|
|
|
4.5
|
%
|
|
4.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Memo:
|
|
|
|
|
|
|
|
Dedicated services operating revenue
|
|
$
|
282.1
|
|
|
249.6
|
|
|
13
|
%
|
|
Dedicated services subcontracted transportation
|
|
|
46.2
|
|
|
38.3
|
|
|
21
|
%
|
|
Dedicated services total revenue
|
|
|
328.3
|
|
|
287.9
|
|
|
14
|
%
|
|
Fuel costs
|
|
$
|
66.8
|
|
|
53.8
|
|
|
(24
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change 2012/2011
|
|
|
|
|
|
Three months ended March 31,
|
|
Three
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
Months
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full service lease
|
|
|
|
|
|
|
|
|
|
|
Average fleet count
|
|
121,500
|
|
|
111,600
|
|
|
9%
|
|
|
|
|
End of period fleet count (a)
|
|
121,700
|
|
|
111,800
|
|
|
9%
|
|
|
|
|
Miles/unit per day change - % (b)
|
|
(0.4
|
)%
|
|
3.3
|
%
|
|
(370)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial rental
|
|
|
|
|
|
|
|
|
|
|
Average fleet count
|
|
40,500
|
|
|
30,900
|
|
|
31%
|
|
|
|
|
End of period fleet count (a)
|
|
41,300
|
|
|
33,200
|
|
|
24%
|
|
|
|
|
Rental utilization - power units
|
|
68.9
|
%
|
|
72.5
|
%
|
|
(360)
|
bps
|
|
|
|
Rental rate change - % (c)
|
|
5.3
|
%
|
|
12.1
|
%
|
|
(680)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer vehicles under contract maintenance
|
|
|
|
|
|
|
|
|
Average fleet count
|
|
35,400
|
|
|
33,300
|
|
|
6%
|
|
|
|
|
End of period fleet count
|
|
35,600
|
|
|
33,200
|
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCS
|
|
|
|
|
|
|
|
|
|
|
Average fleet count (d)
|
|
11,500
|
|
|
10,900
|
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Used vehicle sales (UVS)
|
|
|
|
|
|
|
|
|
|
|
Average UVS inventory
|
|
7,400
|
|
|
5,200
|
|
|
42%
|
|
|
|
|
End of period fleet count (a)
|
|
8,700
|
|
|
5,000
|
|
|
74%
|
|
|
|
|
Used vehicles sold
|
|
5,000
|
|
|
4,100
|
|
|
22%
|
|
|
|
|
UVS pricing change - % (e)
|
|
|
|
|
|
|
|
|
|
|
Tractors
|
|
20
|
%
|
|
42
|
%
|
|
(2,200)
|
bps
|
|
|
|
Trucks
|
|
3
|
%
|
|
44
|
%
|
|
(4,100)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Includes trailers acquired in Hill Hire acquisition (6,100
full-service lease and 3,300 commercial rental).
|
|
(b)
|
|
Represents the percentage change compared to prior year period in
miles driven per vehicle per workday on US lease power units
(restated to exclude vehicles not yet earning revenue and vehicles
no longer earning revenue)
|
|
(c)
|
|
Represents percentage change compared to prior year period in
average global rental rate per day on power units using constant
currency.
|
|
(d)
|
|
These vehicle counts are also included within the average fleet
counts for full service lease and commercial rental.
|
|
(e)
|
|
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,
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
1,536.3
|
|
|
1,425.4
|
|
|
|
|
|
|
Fuel services and subcontracted transportation revenue
|
|
|
(365.9
|
)
|
|
(344.1
|
)
|
|
|
|
|
|
Fuel eliminations
|
|
|
58.6
|
|
|
47.9
|
|
|
|
|
|
|
Operating revenue *
|
|
$
|
1,228.9
|
|
|
1,129.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEBT TO EQUITY RECONCILIATION
|
|
March 31,
|
|
|
|
December 31,
|
|
|
|
|
|
2012
|
|
|
% to Equity
|
|
2011
|
|
% to Equity
|
|
|
|
|
|
|
|
|
|
|
|
On-balance sheet debt
|
|
$
|
3,593.2
|
|
|
262
|
%
|
|
$
|
3,382.1
|
|
257
|
%
|
|
Off-balance sheet debt - PV of minimum lease payments and
guaranteed
residual values under operating leases for vehicles (a)
|
|
|
63.2
|
|
|
|
|
|
64.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total obligations *
|
|
$
|
3,656.4
|
|
|
267
|
%
|
|
|
3,446.1
|
|
261
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW RECONCILIATION
|
|
Three months
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities from continuing operations
|
|
$
|
186.3
|
|
|
217.6
|
|
|
|
|
|
|
Proceeds from sales (primarily revenue earning equipment)
|
|
|
94.2
|
|
|
71.2
|
|
|
|
|
|
|
Collections on direct finance leases
|
|
|
15.5
|
|
|
14.8
|
|
|
|
|
|
|
Total cash generated *
|
|
|
296.0
|
|
|
303.6
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(471.0
|
)
|
|
(313.2
|
)
|
|
|
|
|
|
Free cash flow *
|
|
$
|
(175.0
|
)
|
|
(9.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETURN ON CAPITAL RECONCILIATION
|
|
Twelve months ended March 31,
|
|
|
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (12-month rolling period)
|
|
|
179.0
|
|
|
130.9
|
|
|
|
|
|
|
+ Restructuring and other items
|
|
|
5.8
|
|
|
6.8
|
|
|
|
|
|
|
+ Income taxes
|
|
|
103.5
|
|
|
68.7
|
|
|
|
|
|
|
Adjusted earnings before income taxes
|
|
|
288.3
|
|
|
206.5
|
|
|
|
|
|
|
+ Adjusted interest expense (b)
|
|
|
135.4
|
|
|
134.0
|
|
|
|
|
|
|
- Adjusted income taxes
|
|
|
(156.1
|
)
|
|
(131.9
|
)
|
|
|
|
|
|
= Adjusted net earnings for ROC (numerator)
|
|
|
267.6
|
|
|
208.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total debt
|
|
|
3,255.9
|
|
|
2,591.4
|
|
|
|
|
|
|
Average off-balance sheet debt
|
|
|
72.2
|
|
|
109.1
|
|
|
|
|
|
|
Average shareholders' equity
|
|
|
1,408.7
|
|
|
1,402.9
|
|
|
|
|
|
|
Adjustment to equity (c)
|
|
|
5.4
|
|
|
(1.3
|
)
|
|
|
|
|
|
Adjusted average total capital (denominator)
|
|
|
4,742.1
|
|
|
4,102.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted ROC *
|
|
|
5.6
|
%
|
|
5.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
2012
|
|
|
|
Reported
|
|
|
|
Comparable
|
|
|
|
Earnings
|
|
Adjustments
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,536.3
|
|
|
-
|
|
|
|
1,536.3
|
|
|
|
|
|
|
|
|
|
|
Cost of lease and rental
|
|
|
455.6
|
|
|
|
|
|
455.6
|
|
|
Cost of services
|
|
|
577.9
|
|
|
|
|
|
577.9
|
|
|
Cost of fuel services
|
|
|
215.6
|
|
|
|
|
|
215.6
|
|
|
Other operating expenses
|
|
|
34.2
|
|
|
|
|
|
34.2
|
|
|
Selling, general and administrative expenses
|
|
|
196.0
|
|
|
|
|
|
196.0
|
|
|
Gains on vehicle sales, net
|
|
|
(22.0
|
)
|
|
|
|
|
(22.0
|
)
|
|
Interest expense
|
|
|
34.8
|
|
|
|
|
|
34.8
|
|
|
Miscellaneous income, net
|
|
|
(4.5
|
)
|
|
|
|
|
(4.5
|
)
|
|
Restructuring and other charges, net (a)
|
|
|
0.9
|
|
|
(0.9
|
)
|
|
|
(0.0
|
)
|
|
|
|
|
1,488.6
|
|
|
(0.9
|
)
|
|
|
1,487.7
|
|
|
Earnings from continuing operations before income taxes
|
|
|
47.7
|
|
|
0.9
|
|
|
|
48.6
|
|
|
Provision for income taxes (b)
|
|
|
(12.8
|
)
|
|
(5.2
|
)
|
|
|
(18.0
|
)
|
|
Earnings from continuing operations
|
|
|
34.9
|
|
|
(4.3
|
)
|
|
|
30.6
|
|
|
|
|
|
|
|
|
|
|
Tax rate on continuing operations
|
|
|
26.9
|
%
|
|
|
|
|
37.1
|
%
|
|
|
|
|
|
|
|
|
|
Earnings per common share - Diluted:
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.68
|
|
|
(0.09
|
)
|
|
$
|
0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
|
2011
|
|
|
|
Reported
|
|
|
|
Comparable
|
|
|
|
Earnings
|
|
Adjustments
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,425.4
|
|
|
-
|
|
|
|
1,425.4
|
|
|
|
|
|
|
|
|
|
|
Cost of lease and rental
|
|
|
408.5
|
|
|
|
|
|
408.5
|
|
|
Cost of services
|
|
|
537.9
|
|
|
|
|
|
537.9
|
|
|
Cost of fuel services
|
|
|
209.0
|
|
|
|
|
|
209.0
|
|
|
Other operating expenses
|
|
|
34.6
|
|
|
|
|
|
34.6
|
|
|
Selling, general and administrative expenses
|
|
|
173.1
|
|
|
|
|
|
173.1
|
|
|
Gains on vehicle sales, net
|
|
|
(12.3
|
)
|
|
|
|
|
(12.3
|
)
|
|
Interest expense
|
|
|
34.4
|
|
|
|
|
|
34.4
|
|
|
Miscellaneous income, net
|
|
|
(4.1
|
)
|
|
|
|
|
(4.1
|
)
|
|
Restructuring and other charges, net (c)
|
|
|
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 lease termination
costs.
|
|
(b) Tax benefit related to favorable resolution of tax items from
prior periods and tax impact of restructuring charges.
|
|
(c) Restructuring charges for acquisition-related severance and
contract termination costs.
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not be additive due to rounding.
|
|
|
|
|
|
|
Source: Ryder System, Inc.