-
Record Q3 Comparable EPS from Continuing Operations Up 7% to $1.74
-
Record Q3 EPS from Continuing Operations of $1.70 Increase 8%
-
Record Q3 Operating Revenue of $1.4 Billion Grows 6%
-
Q3 Total Revenue Remains at $1.7 Billion, from Lower Fuel Costs
Passed Through to Customers
MIAMI--(BUSINESS WIRE)--
Ryder System, Inc. (NYSE: R), a leader in commercial fleet
management, dedicated
transportation, and supply
chain solutions, today reported strong third quarter comparable
earnings and revenue growth across all business segments. Earnings and
earnings per diluted share (EPS) from continuing operations for the
three months ended September 30 were as follows:
|
(in millions)
|
|
|
|
|
|
Earnings
|
|
Diluted EPS
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
|
GAAP
|
|
|
|
|
|
$90.8
|
|
|
83.9
|
|
8%
|
|
$1.70
|
|
|
1.58
|
|
8%
|
|
Non-operating pension costs
|
|
|
|
|
|
2.7
|
|
|
1.4
|
|
|
|
0.05
|
|
|
0.03
|
|
|
|
Other items
|
|
|
|
|
|
(0.3
|
)
|
|
1.2
|
|
|
|
(0.01
|
)
|
|
0.02
|
|
|
|
Comparable
|
|
|
|
|
|
$93.3
|
|
|
86.5
|
|
8%
|
|
$1.74
|
|
|
1.63
|
|
7%
|
The Company reported third quarter operating revenue (revenue excluding
all fuel and subcontracted transportation), reflecting higher full
service lease and commercial
rental revenue in Fleet Management Solutions (FMS), new business and
increased volumes in Dedicated Transportation Solutions (DTS) and Supply
Chain Solutions (SCS), partially offset by negative impacts from foreign
exchange. Third quarter total revenue declined slightly from the prior
year, as higher operating revenue was offset by lower fuel prices passed
through to customers. Operating and total revenue for the three months
ended September 30 were as follows:
|
(in millions)
|
|
|
|
|
|
Operating Revenue
|
|
Total Revenue
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
Change
excl. FX
|
|
2015
|
|
2014
|
|
Change
|
|
Total
|
|
|
|
|
|
$1,426
|
|
1,344
|
|
6%
|
|
8%
|
|
$1,669
|
|
1,687
|
|
(1)%
|
|
FMS
|
|
|
|
|
|
$988
|
|
932
|
|
6%
|
|
8%
|
|
$1,158
|
|
1,187
|
|
(2)%
|
|
DTS
|
|
|
|
|
|
$184
|
|
169
|
|
9%
|
|
9%
|
|
$227
|
|
228
|
|
-
|
|
SCS
|
|
|
|
|
|
$319
|
|
305
|
|
5%
|
|
9%
|
|
$387
|
|
390
|
|
(1)%
|
Commenting on the Company’s third quarter performance, Ryder Chairman
and CEO Robert Sanchez said, “In the third quarter, we delivered strong
operating revenue growth across all three business segments. We also
realized solid year-over-year earnings improvement, despite recently
communicated growth-related maintenance challenges and less robust used
vehicle sales conditions. We’ve made adjustments to add labor capacity
within our maintenance organization, and based on the progress we’ve
already made, we’re confident this growth-related challenge will be
fully resolved by the end of October.
“We were pleased with the continued strong sales activity and fleet
growth in our core full service lease product. Commercial rental demand
also remained robust, supported by growth in our lease and national
rental customer base. Rental performance in the U.S. was particularly
strong, with a 12% increase in revenue. We officially launched our new
on-demand maintenance product in the quarter and continue to expand
sales efforts to respond to strong customer interest. Our business in
both dedicated transportation and supply chain showed strong topline
growth and performed generally in line with our expectations. We were
also pleased that our return-on-capital spread widened to 140 basis
points, an increase of 50 basis points from last year.”
Third Quarter Business Segment Operating Results
Fleet Management Solutions
In the FMS business segment, operating revenue (revenue excluding fuel)
in the third quarter of 2015 was $988.4 million, up 6% (or 8% excluding
foreign exchange) compared with the year-earlier period. Total revenue
in the third quarter of 2015 was $1.2 billion, down 2%, as the operating
revenue increase was more than offset by lower fuel costs passed through
to customers. Full service lease revenue increased 6% (or 8% excluding
foreign exchange) due to fleet growth and higher prices on replacement
vehicles. The number of full service lease vehicles (excluding U.K.
trailers) increased by 7,400 from the year-earlier period and grew by
1,900 vehicles sequentially from the second quarter of 2015. Commercial
rental revenue grew 7% (or 9% excluding foreign exchange) reflecting
increased demand and higher pricing in North America. Fuel services
revenue decreased 34%, primarily reflecting lower fuel prices passed
through to customers.
FMS earnings before tax were $126.4 million in the third quarter of
2015, up 5% compared with $120.9 million in the same period of 2014.
Increased earnings primarily reflect higher full service lease results,
and strong commercial rental performance, partially offset by lower used
vehicle sales results, and strategic investments largely in sales and
marketing and technology. Full service lease results benefited from
fleet growth and lower depreciation associated with increased residual
values. Strong commercial rental performance was driven by increased
demand and higher pricing in North America, on a 7% larger average
global fleet, partially offset by lower fleet utilization. Global rental
power fleet utilization was 76.4% for the third quarter, down 160 basis
points from the year-earlier period reflecting an increased number of
out-of-service vehicles. Used vehicle sales results decreased due to
lower volumes, particularly with power units, partially offset by higher
but moderating pricing. FMS earnings before tax as a percentage of
operating revenue were 12.8% in the third quarter of 2015, down 20 basis
points from 13.0% in the same quarter a year ago, driven by lower used
vehicle sales results.
Dedicated Transportation Solutions
In the DTS business segment, third quarter 2015 operating revenue
(revenue excluding fuel and subcontracted transportation), was $184.2
million, up 9% compared with the year-earlier period. DTS operating
revenue grew as a result of new business, as well as higher volumes and
pricing. Total revenue in the third quarter of 2015 was $226.9 million,
consistent with the year-earlier period, as increased operating revenue
was offset by lower fuel costs passed through to customers.
DTS earnings before tax of $13.3 million increased 12% in the third
quarter of 2015 compared with $11.9 million in 2014, as the benefits of
higher operating revenue were partially offset by increased
self-insurance costs. DTS earnings before tax as a percentage of
operating revenue were 7.2% in the third quarter of 2015, up from 7.0%
in the year-earlier period.
Supply Chain Solutions
In the SCS business segment, third quarter 2015 operating revenue
(revenue excluding fuel and subcontracted transportation) was $318.8
million, up 5% (or 9% excluding foreign exchange) compared with the
year-earlier period. SCS operating revenue grew as a result of new
business, higher pricing, and increased volumes. Total revenue was down
1% to $387.3 million, compared with $390.2 million the same quarter a
year ago, as increased operating revenue was more than offset by lower
purchased transportation costs and lower fuel costs passed through to
customers.
SCS earnings before tax of $26.6 million increased 9% in the third
quarter of 2015 compared with $24.3 million in 2014 due to increased
operating revenue. SCS earnings before tax as a percentage of operating
revenue were 8.3% in the third quarter of 2015, up 30 basis points from
8.0% 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 business segments. In the third quarter of 2015, unallocated CSS
costs were $10.1 million, down from $13.6 million in the year-earlier
period due to marketing-related costs now being allocated to the
businesses.
Items Excluded from Comparable Earnings
Non-operating components of pension costs are excluded from both
comparable earnings and segment earnings before tax in order to more
accurately reflect the operating performance of the business.
Non-operating pension costs totaled $4.8 million ($2.7 million after
tax) or $0.05 per diluted share in the third quarter of 2015, up from
$2.5 million ($1.4 million after tax) or $0.03 per diluted share in the
year-earlier period. This increase was due to lower expected asset
returns and new mortality assumptions adopted at the end of 2014. Third
quarter 2015 results also included net recoveries of approximately $0.01
per diluted share primarily associated with adjustments to
multi-employer pension settlements.
Income Taxes
The Company’s effective income tax rate from continuing operations for
the third quarter of 2015 was 35.1% of pre-tax earnings, consistent with
the year-earlier period. The comparable effective income tax rate for
the third quarter of 2015 was 35.3% of earnings before tax, consistent
with the year-earlier period.
Capital Expenditures
Capital expenditures from continuing operations increased to $2.11
billion for the third quarter of 2015, compared with $1.74 billion in
the same period of 2014. The increase in capital expenditures primarily
reflects planned investments in the full service lease and commercial
rental fleets. Net capital expenditures (including proceeds from the
sale of assets) from continuing operations were $1.79 billion in 2015,
up from $1.34 billion in the same period of 2014.
Cash Flow
Operating cash flow from continuing operations through September 30,
2015 was $1.07 billion, up from $981 million in the same period of 2014,
reflecting higher earnings and lower working capital needs. Total cash
generated from continuing operations (including proceeds from used
vehicle sales) through September 30, 2015 was $1.44 billion, compared
with $1.42 billion in the same period of 2014. Free cash flow from
continuing operations through September 30, 2015 was negative $644
million, compared with negative $317 million for the same period of
2014, reflecting increased capital expenditures to support growth.
Leverage
Total debt as of September 30, 2015 increased by $720 million compared
with year-end 2014, due to investments in vehicles to fund growth. Debt
to equity as of September 30, 2015 was 279% compared with 260% at
year-end 2014. Debt to equity increased due to investments to fund
growth and foreign exchange impacts. Due to the increase in leverage,
the Company elected to temporarily pause the anti-dilutive share
repurchase program early in the year. The Company will evaluate
resumption of the program in 2016. Total debt to equity was slightly
above Ryder’s long-term target range of 225% to 275%; however, this
metric is expected to be within the target range at year end.
2015 Earnings Forecast
Commenting on the Company’s outlook, Mr. Sanchez said, “We expect to
deliver record operating revenue and comparable earnings for both the
fourth quarter and full-year 2015. Comparable fourth quarter EPS are
expected to be up 8% to 14% from last year. Strong operating revenue
growth in the quarter is expected to be driven by the Fleet Management
Solutions and Dedicated Transportation Solutions business segments. We
are increasing our full-year forecast for lease fleet growth to a range
of 6,000 to 6,500 vehicles, up from a previous range of 5,000 to 6,000.
Our strong lease fleet growth in the second half of the year provides us
with solid lease revenue and earnings momentum going into 2016. We
expect similar rental revenue comparisons in the fourth quarter based on
the good progress we’ve made in resolving our recent issue related to
out-of-service vehicles. Those vehicles will be available to support
strong rental reservations we’re seeing from seasonal shipping customers
beginning in November. The Company expects fourth quarter results to
continue to be impacted by reduced used truck sales volumes and lower
price expectations that are now consistent with prior-year pricing. In
dedicated transportation and supply chain, we expect solid earnings
growth and continuation of the strong performance trends we saw in the
third quarter. Although we expect continued growth and performance for
the Company overall to be generally consistent with recent trends, the
low end of our forecast range contemplates the potential for a modestly
weaker rental and/or used vehicle sales environment. We continue to be
excited about the results we’ve made, to date, as well as the future
opportunities for increased secular outsourcing in all of our
contractual product lines.”
Ryder’s fourth quarter comparable earnings forecast range of $1.72 to
$1.82 per share, is up 8% to 14% from $1.59 in the same period last
year. Fourth quarter results include an expected reduction of $0.02, due
to the absence of anti-dilutive share repurchases. The Company’s
full-year 2015 comparable earnings per share forecast of $6.17 to $6.29,
is up 11% to 13% from $5.58 for full-year 2014.
|
|
|
|
|
|
|
Supplemental Company Information
|
|
|
|
|
|
|
|
Third Quarter Net Earnings
|
|
|
|
|
|
|
|
(in millions)
|
|
Earnings
|
|
Diluted EPS
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Earnings from continuing operations
|
|
$90.8
|
|
|
83.9
|
|
|
$1.70
|
|
1.58
|
|
|
Discontinued operations(1)
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|
-
|
|
(0.01
|
)
|
|
Net earnings
|
|
$90.6
|
|
|
83.6
|
|
|
$ 1.69
|
|
1.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Previously announced in 2009
|
|
|
|
|
|
Year-to-Date Operating Results
|
|
|
|
|
|
(in millions)
|
|
Nine months ended September 30
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
Total revenue
|
|
$4,900
|
|
4,982
|
|
(2)%
|
|
Operating revenue (1)
|
|
$4,119
|
|
3,903
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
$230.1
|
|
208.7
|
|
10%
|
|
Comparable earnings from continuing operations
|
|
$238.5
|
|
212.2
|
|
12%
|
|
Net earnings
|
|
$228.6
|
|
207.3
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (EPS) – Diluted
|
|
|
|
|
|
|
|
Continuing operations
|
|
$4.31
|
|
3.92
|
|
10%
|
|
Comparable
|
|
$4.47
|
|
3.98
|
|
12%
|
|
Net earnings
|
|
$4.28
|
|
3.89
|
|
10%
|
|
|
|
|
|
|
|
|
|
(1) Excluding all fuel and subcontracted transportation
|
Business Description
Ryder System, Inc. is a FORTUNE 500® commercial fleet management,
dedicated transportation, and supply chain 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 – Ryder’s FMS business segment
provides one-stop outsourcing of a range of solutions for commercial
truck fleet operators, including vehicle maintenance, leasing and
rental, used vehicle sales, as well as services such as roadside
assistance, fueling, safety, and financing options.
-
Dedicated
Transportation Solutions – Ryder’s DTS business segment
provides customers with vehicles, drivers, management, and
administrative support, with the assets committed to a specific
customer for a contractual term. DTS supports customers with
specialized equipment or product handling needs, complex routes,
rigorous service level agreements or high driver turnover.
-
Supply
Chain Solutions – Ryder’s SCS business segment offers a
broad range of innovative solutions designed to optimize day-to-day
logistics operations and synchronize the supply of parts and finished
goods with customer demand. Solutions are strategically engineered to
address customer requirements and include lead logistics management,
dedicated services, warehousing, transportation management, packaging,
and other value-added services.
Notations
Total Obligations to Equity: Due to the recent change in
sale-leaseback accounting treatment, Ryder will no longer report total
obligations to equity, as this metric is now substantially the same as
the Company’s debt to equity metric.
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-operating 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 http://investors.ryder.com/.
Note Regarding Forward-Looking Statements:
Certain statements and information included in this news release are
"forward-looking statements" under the Federal Private Securities
Litigation Reform Act of 1995, including our expectations regarding
earnings performance, revenue growth in our business segments, fleet
growth, performance in our product lines, expansion of on-demand
maintenance, demand and pricing trends in commercial rental and used
vehicle sales, return on capital spread, and anticipated resumption of
our share repurchase program. 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, lower than expected lease sales,
decreases in commercial rental demand or poor acceptance of rental
pricing, our ability to return out of service vehicles to the fleet in
the fourth quarter, availability of rental vehicles to meet demand and
availability of labor to maintain our fleet at normalized levels,
fluctuations in market demand for used vehicles impacting current
pricing and our anticipated proportion of retail versus wholesale sales,
lack of customer demand for on-demand maintenance, higher than expected
maintenance costs from new engine technology or due to lower than
expected benefits from maintenance initiatives and a newer fleet,
setbacks in the economic recovery, decreases in freight demand or
volumes, poor operational execution particularly with start-ups and new
product launches, our ability to obtain adequate profit margins for our
services, our inability to maintain current pricing levels due to soft
economic conditions, slower than expected economic recovery in the U.K.,
business interruptions or expenditures due to severe weather or natural
occurrences, competition from other service providers and new entrants,
customer retention levels, loss of key customers, driver and technician
shortages resulting in higher procurement costs and turnover rates,
unexpected bad debt reserves or write-offs, 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, adequacy of accounting estimates, reserves and accruals
particularly with respect to pension, taxes, depreciation, insurance and
revenue, sudden or unusual changes in fuel prices, unanticipated
currency exchange rate fluctuations, our ability to manage our cost
structure, 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 operating revenue, operating revenue growth
excluding foreign exchange, comparable earnings and earnings per share,
comparable earnings per share forecast, comparable earnings before
income tax, comparable tax rate, adjusted return on capital (and return
on capital spread), total cash generated, free cash flow, and the ratios
based on these financial measures. Refer to Appendix – Non-GAAP
Financial Measures for more information about the non-GAAP financial
measures contained in this presentation. Additional information as
required by Regulation G regarding non-GAAP financial measures can be
found in our most recent Form 10-K, Form 10-Q and our Form 8-K filed as
of the date of this presentation with the SEC, which are available at http://investors.ryder.com.
Beginning in 2015, in addition to excluding FMS fuel services revenue
and subcontracted transportation from the calculation of operating
revenue, we also exclude SCS and DTS fuel costs billed to customers.
Conference Call and Webcast Information:
Ryder’s earnings conference call and webcast is scheduled for Thursday,
October 22, 2015, from 11:00 a.m. to 12:00 noon Eastern Time. Speakers
will be Chairman and Chief Executive Officer Robert Sanchez, 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: PWXW5446388 and Passcode: RYDER.
-
To access audio replays of the conference and
view a presentation of Ryder’s earnings results: Dial 1-888-566-0638
(outside U.S. dial 1-402-998-0731), 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 September 30, 2015 and 2014
(In millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Nine Months
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Lease and rental revenues
|
|
$
|
802.9
|
|
|
756.7
|
|
|
$
|
2,311.0
|
|
|
2,180.2
|
|
|
Services revenue
|
|
734.8
|
|
|
732.0
|
|
|
2,165.7
|
|
|
2,183.2
|
|
|
Fuel services revenue
|
|
131.4
|
|
|
198.4
|
|
|
422.5
|
|
|
619.1
|
|
|
Total revenues
|
|
1,669.1
|
|
|
1,687.2
|
|
|
4,899.2
|
|
|
4,982.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of lease and rental
|
|
550.5
|
|
|
522.2
|
|
|
1,600.3
|
|
|
1,522.4
|
|
|
Cost of services
|
|
606.4
|
|
|
607.5
|
|
|
1,792.2
|
|
|
1,839.0
|
|
|
Cost of fuel services
|
|
129.6
|
|
|
194.9
|
|
|
408.0
|
|
|
605.7
|
|
|
Other operating expenses
|
|
31.3
|
|
|
28.9
|
|
|
98.9
|
|
|
96.5
|
|
|
Selling, general and administrative expenses
|
|
203.1
|
|
|
202.0
|
|
|
624.6
|
|
|
594.1
|
|
|
Gains on vehicle sales, net
|
|
(29.3
|
)
|
|
(33.7
|
)
|
|
(92.1
|
)
|
|
(96.9
|
)
|
|
Interest expense
|
|
39.0
|
|
|
36.7
|
|
|
114.9
|
|
|
107.9
|
|
|
Miscellaneous income, net
|
|
(1.4
|
)
|
|
(1.0
|
)
|
|
(5.0
|
)
|
|
(11.2
|
)
|
|
|
|
1,529.2
|
|
|
1,557.5
|
|
|
4,541.6
|
|
|
4,657.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
139.9
|
|
|
129.6
|
|
|
357.5
|
|
|
324.7
|
|
|
Provision for income taxes
|
|
49.1
|
|
|
45.7
|
|
|
127.5
|
|
|
116.0
|
|
|
Earnings from continuing operations
|
|
90.8
|
|
|
83.9
|
|
|
230.1
|
|
|
208.7
|
|
|
Loss from discontinued operations, net of tax
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|
(1.5
|
)
|
|
(1.5
|
)
|
|
Net earnings
|
|
$
|
90.6
|
|
|
83.6
|
|
|
$
|
228.6
|
|
|
207.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share - Diluted
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
1.70
|
|
|
1.58
|
|
|
$
|
4.31
|
|
|
3.92
|
|
|
Discontinued operations
|
|
—
|
|
|
(0.01
|
)
|
|
(0.03
|
)
|
|
(0.03
|
)
|
|
Net earnings
|
|
$
|
1.69
|
|
|
1.57
|
|
|
$
|
4.28
|
|
|
3.89
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share information - Diluted
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
$
|
90.8
|
|
|
83.9
|
|
|
$
|
230.1
|
|
|
208.7
|
|
|
Less: Distributed and undistributed earnings allocated to nonvested
stock
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.6
|
)
|
|
(0.9
|
)
|
|
Earnings from continuing operations available to common stockholders
|
|
$
|
90.5
|
|
|
83.6
|
|
|
$
|
229.4
|
|
|
207.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding - Diluted
|
|
53.3
|
|
|
53.0
|
|
|
53.2
|
|
|
53.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable earnings per share from continuing operations: *
|
|
|
|
|
|
|
|
|
|
EPS from continuing operations
|
|
$
|
1.70
|
|
|
1.58
|
|
|
$
|
4.31
|
|
|
3.92
|
|
|
Non-operating pension costs
|
|
0.05
|
|
|
0.03
|
|
|
0.15
|
|
|
0.07
|
|
|
Pension settlement adjustments
|
|
(0.01
|
)
|
|
0.01
|
|
|
(0.01
|
)
|
|
0.01
|
|
|
Professional fees
|
|
—
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
|
Tax law change
|
|
—
|
|
|
—
|
|
|
(0.03
|
)
|
|
(0.03
|
)
|
|
Acquisition transaction costs
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
Comparable EPS from continuing operations *
|
|
$
|
1.74
|
|
|
1.63
|
|
|
$
|
4.47
|
|
|
3.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Non-GAAP financial measure.
Note: Amounts may not be additive due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS - UNAUDITED
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
September 30,
2015
|
|
December 31,
2014
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
75.4
|
|
|
50.1
|
|
Other current assets
|
|
1,042.1
|
|
|
1,026.1
|
|
Revenue earning equipment, net
|
|
8,036.7
|
|
|
7,201.9
|
|
Operating property and equipment, net
|
|
712.2
|
|
|
699.6
|
|
Other assets
|
|
953.8
|
|
|
905.7
|
|
|
|
$
|
10,820.2
|
|
|
9,883.4
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity:
|
|
|
|
|
|
Current liabilities
|
|
$
|
1,061.5
|
|
|
1,074.5
|
|
Total debt
|
|
5,450.7
|
|
|
4,730.6
|
|
Other non-current liabilities (including deferred income taxes)
|
|
2,355.9
|
|
|
2,259.2
|
|
Shareholders' equity
|
|
1,952.1
|
|
|
1,819.1
|
|
|
|
$
|
10,820.2
|
|
|
9,883.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED KEY RATIOS AND METRICS
|
|
|
|
|
|
|
|
|
|
September 30,
2015
|
|
December 31,
2014
|
|
|
|
|
|
|
|
Debt to equity
|
|
279%
|
|
260%
|
|
Effective interest rate (average cost of debt)
|
|
2.9%
|
|
3.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Cash provided by operating activities from continuing operations
|
|
$
|
1,071.3
|
|
|
981.0
|
|
|
Free cash flow *
|
|
(643.8
|
)
|
|
(316.8
|
)
|
|
Capital expenditures paid
|
|
2,087.3
|
|
|
1,741.2
|
|
|
|
|
|
|
|
|
Capital expenditures (accrual basis)
|
|
$
|
2,105.6
|
|
|
1,737.3
|
|
|
Less: Proceeds from sales (primarily revenue earning equipment)
|
|
(321.0
|
)
|
|
(395.7
|
)
|
|
Net capital expenditures
|
|
$
|
1,784.6
|
|
|
1,341.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended September 30,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Return on average shareholders' equity
|
|
12.8%
|
|
14.4%
|
|
Return on average assets
|
|
2.3%
|
|
2.9%
|
|
Adjusted return on capital *
|
|
5.9%
|
|
5.7%
|
|
Weighted average cost of capital
|
|
4.5%
|
|
4.8%
|
|
Return on capital spread **
|
|
1.4%
|
|
0.9%
|
|
|
|
|
|
|
|
* Non-GAAP financial measure; see reconciliation to closest GAAP
financial measure included within this release.
|
|
** Non-GAAP financial measure. Return on capital spread is
calculated as the difference of the adjusted return on capital and
the weighted average cost of capital.
|
|
Note: Amounts may not be additive due to rounding.
|
|
|
|
|
|
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
BUSINESS SEGMENT REVENUE AND EARNINGS - UNAUDITED
Periods ended September 30, 2015 and 2014
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Nine Months
|
|
|
|
2015
|
|
2014
|
|
B(W)
|
|
2015
|
|
2014
|
|
B(W)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet Management Solutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full service lease
|
|
$
|
609.3
|
|
|
575.8
|
|
|
6
|
%
|
|
$
|
1,782.1
|
|
|
1,694.1
|
|
|
5
|
%
|
|
Contract maintenance
|
|
48.6
|
|
|
46.9
|
|
|
4
|
%
|
|
143.6
|
|
|
136.9
|
|
|
5
|
%
|
|
Contractual revenue
|
|
657.9
|
|
|
622.7
|
|
|
6
|
%
|
|
1,925.7
|
|
|
1,831.0
|
|
|
5
|
%
|
|
Commercial rental
|
|
250.6
|
|
|
234.2
|
|
|
7
|
%
|
|
694.7
|
|
|
646.1
|
|
|
8
|
%
|
|
Contract-related maintenance
|
|
59.9
|
|
|
56.8
|
|
|
5
|
%
|
|
169.6
|
|
|
169.4
|
|
|
—
|
%
|
|
Other
|
|
20.0
|
|
|
18.1
|
|
|
10
|
%
|
|
56.7
|
|
|
53.2
|
|
|
7
|
%
|
|
Fuel services revenue
|
|
169.2
|
|
|
255.0
|
|
|
(34
|
)%
|
|
547.4
|
|
|
803.5
|
|
|
(32
|
)%
|
|
Total Fleet Management Solutions
|
|
1,157.6
|
|
|
1,186.9
|
|
|
(2
|
)%
|
|
3,394.1
|
|
|
3,503.2
|
|
|
(3
|
)%
|
|
Dedicated Transportation Solutions
|
|
226.9
|
|
|
227.6
|
|
|
—
|
%
|
|
663.1
|
|
|
677.5
|
|
|
(2
|
)%
|
|
Supply Chain Solutions
|
|
387.3
|
|
|
390.2
|
|
|
(1
|
)%
|
|
1,155.3
|
|
|
1,165.2
|
|
|
(1
|
)%
|
|
Eliminations
|
|
(102.7
|
)
|
|
(117.6
|
)
|
|
(13
|
)%
|
|
(313.3
|
)
|
|
(363.5
|
)
|
|
(14
|
)%
|
|
Total revenue
|
|
$
|
1,669.1
|
|
|
1,687.2
|
|
|
(1
|
)%
|
|
$
|
4,899.2
|
|
|
4,982.5
|
|
|
(2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenue: *
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet Management Solutions
|
|
$
|
988.4
|
|
|
931.9
|
|
|
6
|
%
|
|
$
|
2,846.7
|
|
|
2,699.7
|
|
|
5
|
%
|
|
Dedicated Transportation Solutions
|
|
184.2
|
|
|
168.7
|
|
|
9
|
%
|
|
526.9
|
|
|
491.9
|
|
|
7
|
%
|
|
Supply Chain Solutions
|
|
318.8
|
|
|
304.8
|
|
|
5
|
%
|
|
934.3
|
|
|
890.4
|
|
|
5
|
%
|
|
Eliminations
|
|
(65.0
|
)
|
|
(60.9
|
)
|
|
7
|
%
|
|
(188.4
|
)
|
|
(179.1
|
)
|
|
5
|
%
|
|
Operating revenue
|
|
$
|
1,426.5
|
|
|
1,344.5
|
|
|
6
|
%
|
|
$
|
4,119.4
|
|
|
3,902.9
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business segment earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet Management Solutions
|
|
$
|
126.4
|
|
|
120.9
|
|
|
5
|
%
|
|
$
|
338.6
|
|
|
311.5
|
|
|
9
|
%
|
|
Dedicated Transportation Solutions
|
|
13.3
|
|
|
11.9
|
|
|
12
|
%
|
|
34.7
|
|
|
33.5
|
|
|
3
|
%
|
|
Supply Chain Solutions
|
|
26.6
|
|
|
24.3
|
|
|
9
|
%
|
|
70.0
|
|
|
55.1
|
|
|
27
|
%
|
|
Eliminations
|
|
(12.0
|
)
|
|
(9.6
|
)
|
|
(25
|
)%
|
|
(35.1
|
)
|
|
(29.7
|
)
|
|
(18
|
)%
|
|
|
|
154.3
|
|
|
147.5
|
|
|
5
|
%
|
|
408.1
|
|
|
370.4
|
|
|
10
|
%
|
|
Unallocated Central Support Services
|
|
(10.1
|
)
|
|
(13.6
|
)
|
|
26
|
%
|
|
(32.9
|
)
|
|
(36.5
|
)
|
|
10
|
%
|
|
Non-operating pension costs
|
|
(4.8
|
)
|
|
(2.5
|
)
|
|
(95
|
)%
|
|
(14.4
|
)
|
|
(7.3
|
)
|
|
(96
|
)%
|
|
Restructuring and other, net
|
|
0.4
|
|
|
(1.8
|
)
|
|
NM
|
|
(3.3
|
)
|
|
(1.8
|
)
|
|
NM
|
|
Earnings from continuing operations before income taxes
|
|
139.9
|
|
|
129.6
|
|
|
8
|
%
|
|
357.5
|
|
|
324.7
|
|
|
10
|
%
|
|
Provision for income taxes
|
|
49.1
|
|
|
45.7
|
|
|
(7
|
)%
|
|
127.5
|
|
|
116.0
|
|
|
(10
|
)%
|
|
Earnings from continuing operations
|
|
$
|
90.8
|
|
|
83.9
|
|
|
8
|
%
|
|
$
|
230.1
|
|
|
208.7
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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 INFORMATION - UNAUDITED
Periods ended September 30, 2015 and 2014
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Nine Months
|
|
|
|
2015
|
|
2014
|
|
B(W)
|
|
2015
|
|
2014
|
|
B(W)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet Management Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
1,157.6
|
|
|
1,186.9
|
|
|
(2
|
)%
|
|
$
|
3,394.1
|
|
|
3,503.2
|
|
|
(3
|
)%
|
|
Fuel services revenue(a)
|
|
(169.2
|
)
|
|
(255.0
|
)
|
|
(34
|
)%
|
|
(547.4
|
)
|
|
(803.5
|
)
|
|
(32
|
)%
|
|
Operating revenue *
|
|
$
|
988.4
|
|
|
931.9
|
|
|
6
|
%
|
|
$
|
2,846.7
|
|
|
2,699.7
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment earnings before income taxes
|
|
$
|
126.4
|
|
|
120.9
|
|
|
5
|
%
|
|
$
|
338.6
|
|
|
311.5
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of total revenue
|
|
10.9
|
%
|
|
10.2
|
%
|
|
|
|
10.0
|
%
|
|
8.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of operating revenue *
|
|
12.8
|
%
|
|
13.0
|
%
|
|
|
|
11.9
|
%
|
|
11.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dedicated Transportation Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
226.9
|
|
|
227.6
|
|
|
—
|
%
|
|
$
|
663.1
|
|
|
677.5
|
|
|
(2
|
)%
|
|
Subcontracted transportation
|
|
(13.7
|
)
|
|
(17.1
|
)
|
|
(20
|
)%
|
|
(42.8
|
)
|
|
(56.5
|
)
|
|
(24
|
)%
|
|
Fuel costs(a)
|
|
(29.0
|
)
|
|
(41.8
|
)
|
|
(31
|
)%
|
|
(93.4
|
)
|
|
(129.2
|
)
|
|
(28
|
)%
|
|
Operating revenue *
|
|
$
|
184.2
|
|
|
168.7
|
|
|
9
|
%
|
|
$
|
526.9
|
|
|
491.9
|
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment earnings before income taxes
|
|
$
|
13.3
|
|
|
11.9
|
|
|
12
|
%
|
|
$
|
34.7
|
|
|
33.5
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of total revenue
|
|
5.9
|
%
|
|
5.2
|
%
|
|
|
|
5.2
|
%
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of operating revenue *
|
|
7.2
|
%
|
|
7.0
|
%
|
|
|
|
6.6
|
%
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply Chain Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
387.3
|
|
|
390.2
|
|
|
(1
|
)%
|
|
$
|
1,155.3
|
|
|
1,165.2
|
|
|
(1
|
)%
|
|
Subcontracted transportation
|
|
(54.0
|
)
|
|
(63.7
|
)
|
|
(15
|
)%
|
|
(172.0
|
)
|
|
(200.3
|
)
|
|
(14
|
)%
|
|
Fuel costs(a)
|
|
(14.6
|
)
|
|
(21.7
|
)
|
|
(33
|
)%
|
|
(49.1
|
)
|
|
(74.5
|
)
|
|
(34
|
)%
|
|
Operating revenue *
|
|
$
|
318.8
|
|
|
304.8
|
|
|
5
|
%
|
|
$
|
934.3
|
|
|
890.4
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment earnings before income taxes
|
|
$
|
26.6
|
|
|
24.3
|
|
|
9
|
%
|
|
$
|
70.0
|
|
|
55.1
|
|
|
27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of total revenue
|
|
6.9
|
%
|
|
6.2
|
%
|
|
|
|
6.1
|
%
|
|
4.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of operating revenue *
|
|
8.3
|
%
|
|
8.0
|
%
|
|
|
|
7.5
|
%
|
|
6.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Non-GAAP financial measure.
Note: Amounts may not be additive due to rounding.
(a) Includes intercompany fuel sales from FMS to DTS and SCS.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION - UNAUDITED
KEY PERFORMANCE INDICATORS
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
|
Change 2015/2014
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Three
Months
|
|
Nine
Months
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full service lease
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fleet count
|
|
129,900
|
|
|
123,000
|
|
|
128,000
|
|
|
123,100
|
|
|
6%
|
|
4%
|
|
End of period fleet count
|
|
130,600
|
|
|
123,200
|
|
|
130,600
|
|
|
123,200
|
|
|
6%
|
|
6%
|
|
Miles/unit per day change - % (a)
|
|
(1.2
|
)%
|
|
2.3
|
%
|
|
(0.3
|
)%
|
|
1.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial rental
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fleet count
|
|
43,800
|
|
|
40,800
|
|
|
42,100
|
|
|
39,600
|
|
|
7%
|
|
6%
|
|
End of period fleet count
|
|
43,800
|
|
|
40,700
|
|
|
43,800
|
|
|
40,700
|
|
|
8%
|
|
8%
|
|
Rental utilization - power units
|
|
76.4
|
%
|
|
78.0
|
%
|
|
76.0
|
%
|
|
76.7
|
%
|
|
(160) bps
|
|
(70) bps
|
|
Rental rate change - % (b)
|
|
2.4
|
%
|
|
4.3
|
%
|
|
3.5
|
%
|
|
4.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer vehicles under
|
|
|
|
|
|
|
|
|
|
|
|
|
|
contract maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fleet count
|
|
41,400
|
|
|
40,200
|
|
|
42,600
|
|
|
38,800
|
|
|
3%
|
|
10%
|
|
End of period fleet count
|
|
41,500
|
|
|
41,300
|
|
|
41,500
|
|
|
41,300
|
|
|
—%
|
|
—%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer vehicles under
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on-demand maintenance (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet serviced during the period
|
|
8,200
|
|
|
6,200
|
|
|
16,900
|
|
|
13,000
|
|
|
32%
|
|
30%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fleet count (d)
|
|
7,600
|
|
|
7,200
|
|
|
7,400
|
|
|
7,000
|
|
|
6%
|
|
6%
|
|
End of period fleet count(d)
|
|
7,600
|
|
|
7,000
|
|
|
7,600
|
|
|
7,000
|
|
|
9%
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fleet count (d)
|
|
6,100
|
|
|
5,300
|
|
|
5,800
|
|
|
5,500
|
|
|
15%
|
|
5%
|
|
End of period fleet count(d)
|
|
6,300
|
|
|
5,500
|
|
|
6,300
|
|
|
5,500
|
|
|
15%
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Used vehicle sales (UVS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average UVS inventory
|
|
5,900
|
|
|
6,000
|
|
|
5,800
|
|
|
6,800
|
|
|
(2)%
|
|
(15)%
|
|
End of period fleet count
|
|
6,100
|
|
|
5,800
|
|
|
6,100
|
|
|
5,800
|
|
|
5%
|
|
5%
|
|
Used vehicles sold
|
|
4,400
|
|
|
5,000
|
|
|
13,400
|
|
|
16,100
|
|
|
(12)%
|
|
(17)%
|
|
UVS pricing change - % (e)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tractors
|
|
5
|
%
|
|
16
|
%
|
|
10
|
%
|
|
11
|
%
|
|
|
|
|
|
Trucks
|
|
8
|
%
|
|
14
|
%
|
|
10
|
%
|
|
14
|
%
|
|
|
|
|
|
Notes:
|
|
(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)
|
Comprised of the number of vehicles serviced under on-demand
maintenance agreements. Vehicles included in the end of period
count may have been serviced more than one time during the
respective period.
|
|
(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
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
1,669.1
|
|
|
1,687.2
|
|
|
$
|
4,899.2
|
|
|
4,982.5
|
|
|
Fuel
|
|
(175.0
|
)
|
|
(261.9
|
)
|
|
(565.0
|
)
|
|
(822.8
|
)
|
|
Subcontracted transportation
|
|
(67.6
|
)
|
|
(80.8
|
)
|
|
(214.8
|
)
|
|
(256.8
|
)
|
|
Operating revenue *
|
|
$
|
1,426.5
|
|
|
1,344.5
|
|
|
$
|
4,119.4
|
|
|
3,902.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING REVENUE GROWTH EXCLUDING
FOREIGN EXCHANGE RECONCILIATION
|
|
|
|
Third Quarter
|
|
Year-to-Date
|
|
|
|
2015 vs 2014
Growth
|
|
Fx Impact(a)
|
|
Growth excl
Fx
|
|
2015 vs 2014
Growth
|
|
Fx Impact(a)
|
|
Growth excl
Fx
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RSI Operating Revenue
|
|
6%
|
|
(2)%
|
|
8%
|
|
6%
|
|
(2)%
|
|
8%
|
|
FMS Operating Revenue
|
|
6%
|
|
(2)%
|
|
8%
|
|
5%
|
|
(2)%
|
|
7%
|
|
SCS Operating Revenue
|
|
5%
|
|
(4)%
|
|
9%
|
|
5%
|
|
(3)%
|
|
8%
|
|
Full Service Lease Revenue
|
|
6%
|
|
(2)%
|
|
8%
|
|
5%
|
|
(2)%
|
|
7%
|
|
Commercial Rental Revenue
|
|
7%
|
|
(2)%
|
|
9%
|
|
8%
|
|
(2)%
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW RECONCILIATION
|
|
Nine months ended September 30,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Net cash provided by operating activities from continuing operations
|
|
$
|
1,071.3
|
|
|
981.0
|
|
|
Proceeds from sales (primarily revenue earning equipment)
|
|
321.0
|
|
|
395.7
|
|
|
Collections on direct finance leases
|
|
51.2
|
|
|
48.9
|
|
|
Other
|
|
—
|
|
|
(1.3
|
)
|
|
Total cash generated *
|
|
1,443.5
|
|
|
1,424.4
|
|
|
Capital expenditures
|
|
(2,087.3
|
)
|
|
(1,741.2
|
)
|
|
Free cash flow *
|
|
$
|
(643.8
|
)
|
|
(316.8
|
)
|
|
Notes:
|
|
(a)
|
Foreign exchange impact was calculated by dividing the results for
the current and prior year periods by the exchange rates in effect
on September 30, 2014, which was the last day of the prior year
period, rather than the actual exchange rates in effect as of
September 30, 2015.
|
|
|
|
|
* Non-GAAP financial measure.
|
|
Note: Amounts may not be additive due to rounding.
|
|
|
|
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED
(Dollars in millions)
|
|
|
|
|
|
RETURN ON CAPITAL RECONCILIATION
|
|
Twelve months ended September 30,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Net earnings (12-month rolling period)
|
|
$
|
239.6
|
|
|
271.8
|
|
|
+ Restructuring and other items
|
|
116.3
|
|
|
3.2
|
|
|
+ Income taxes
|
|
129.7
|
|
|
147.5
|
|
|
Adjusted earnings before income taxes
|
|
485.6
|
|
|
422.5
|
|
|
+ Adjustments
|
|
152.0
|
|
|
142.7
|
|
|
- Adjusted income taxes
|
|
(228.8
|
)
|
|
(198.3
|
)
|
|
= Adjusted net earnings for ROC (numerator)
|
|
$
|
408.8
|
|
|
366.9
|
|
|
|
|
|
|
|
|
Average total debt
|
|
$
|
4,988.8
|
|
|
4,516.2
|
|
|
Average off-balance sheet debt
|
|
1.5
|
|
|
1.9
|
|
|
Average shareholders' equity
|
|
1,877.7
|
|
|
1,894.7
|
|
|
Adjustment to equity (a)
|
|
18.3
|
|
|
(1.4
|
)
|
|
Adjusted average total capital (denominator)
|
|
$
|
6,886.3
|
|
|
6,411.3
|
|
|
|
|
|
|
|
|
Adjusted ROC *
|
|
5.9
|
%
|
|
5.7
|
%
|
|
Notes:
|
|
(a)
|
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
|
|
Nine Months
|
|
|
|
2015
|
|
2015
|
|
|
|
Reported
|
|
|
|
Comparable
|
|
Reported
|
|
|
|
Comparable
|
|
|
|
Earnings
|
|
Adjustment
|
|
Earnings *
|
|
Earnings
|
|
Adjustment
|
|
Earnings *
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,669.1
|
|
|
—
|
|
|
$
|
1,669.1
|
|
|
$
|
4,899.2
|
|
|
—
|
|
|
$
|
4,899.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of lease and rental
|
|
550.5
|
|
|
—
|
|
|
550.5
|
|
|
1,600.3
|
|
|
—
|
|
|
1,600.3
|
|
|
Cost of services
|
|
606.4
|
|
|
—
|
|
|
606.4
|
|
|
1,792.2
|
|
|
—
|
|
|
1,792.2
|
|
|
Cost of fuel services
|
|
129.6
|
|
|
—
|
|
|
129.6
|
|
|
408.0
|
|
|
—
|
|
|
408.0
|
|
|
Other operating expenses
|
|
31.3
|
|
|
—
|
|
|
31.3
|
|
|
98.9
|
|
|
—
|
|
|
98.9
|
|
|
Selling, general and administrative expenses (a)(b)
|
|
203.1
|
|
|
(4.3
|
)
|
|
198.8
|
|
|
624.6
|
|
|
(17.7
|
)
|
|
606.9
|
|
|
Gains on vehicle sales, net
|
|
(29.3
|
)
|
|
—
|
|
|
(29.3
|
)
|
|
(92.1
|
)
|
|
—
|
|
|
(92.1
|
)
|
|
Interest expense
|
|
39.0
|
|
|
—
|
|
|
39.0
|
|
|
114.9
|
|
|
—
|
|
|
114.9
|
|
|
Miscellaneous income, net
|
|
(1.4
|
)
|
|
—
|
|
|
(1.4
|
)
|
|
(5.0
|
)
|
|
—
|
|
|
(5.0
|
)
|
|
|
|
1,529.2
|
|
|
(4.3
|
)
|
|
1,524.8
|
|
|
4,541.6
|
|
|
(17.7
|
)
|
|
4,523.9
|
|
|
Earnings from continuing operations before income taxes
|
|
139.9
|
|
|
4.3
|
|
|
144.2
|
|
|
357.5
|
|
|
17.7
|
|
|
375.2
|
|
|
Provision for income taxes (c)
|
|
(49.1
|
)
|
|
(1.9
|
)
|
|
(51.0
|
)
|
|
(127.5
|
)
|
|
(9.2
|
)
|
|
(136.7
|
)
|
|
Earnings from continuing operations
|
|
90.8
|
|
|
2.5
|
|
|
93.3
|
|
|
230.1
|
|
|
8.4
|
|
|
238.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax rate on continuing operations
|
|
35.1
|
%
|
|
|
|
35.3
|
%
|
|
35.7
|
%
|
|
|
|
36.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share - Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
1.70
|
|
|
0.04
|
|
|
$
|
1.74
|
|
|
$
|
4.31
|
|
|
0.16
|
|
|
$
|
4.47
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Nine Months
|
|
|
|
2014
|
|
2014
|
|
|
|
Reported
|
|
|
|
Comparable
|
|
Reported
|
|
|
|
Comparable
|
|
|
|
Earnings
|
|
Adjustment
|
|
Earnings *
|
|
Earnings
|
|
Adjustment
|
|
Earnings *
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,687.2
|
|
|
|
|
$
|
1,687.2
|
|
|
$
|
4,982.5
|
|
|
|
|
$
|
4,982.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of lease and rental
|
|
522.2
|
|
|
—
|
|
|
522.2
|
|
|
1,522.4
|
|
|
—
|
|
|
1,522.4
|
|
|
Cost of services
|
|
607.5
|
|
|
—
|
|
|
607.5
|
|
|
1,839.0
|
|
|
—
|
|
|
1,839.0
|
|
|
Cost of fuel services
|
|
194.9
|
|
|
—
|
|
|
194.9
|
|
|
605.7
|
|
|
—
|
|
|
605.7
|
|
|
Other operating expenses
|
|
28.9
|
|
|
—
|
|
|
28.9
|
|
|
96.5
|
|
|
—
|
|
|
96.5
|
|
|
Selling, general and administrative expenses (a)(b)
|
|
202.0
|
|
|
(4.3
|
)
|
|
197.7
|
|
|
594.1
|
|
|
(9.1
|
)
|
|
585.1
|
|
|
Gains on vehicle sales, net
|
|
(33.7
|
)
|
|
—
|
|
|
(33.7
|
)
|
|
(96.9
|
)
|
|
—
|
|
|
(96.9
|
)
|
|
Interest expense
|
|
36.7
|
|
|
—
|
|
|
36.7
|
|
|
107.9
|
|
|
—
|
|
|
107.9
|
|
|
Miscellaneous income, net
|
|
(1.0
|
)
|
|
—
|
|
|
(1.0
|
)
|
|
(11.2
|
)
|
|
—
|
|
|
(11.2
|
)
|
|
|
|
1,557.5
|
|
|
(4.3
|
)
|
|
1,553.2
|
|
|
4,657.7
|
|
|
(9.1
|
)
|
|
4,648.6
|
|
|
Earnings from continuing operations before income taxes
|
|
129.6
|
|
|
4.3
|
|
|
133.9
|
|
|
324.7
|
|
|
9.1
|
|
|
333.9
|
|
|
Provision for income taxes (c)
|
|
(45.7
|
)
|
|
(1.7
|
)
|
|
(47.4
|
)
|
|
(116.0
|
)
|
|
(5.7
|
)
|
|
(121.7
|
)
|
|
Earnings from continuing operations
|
|
83.9
|
|
|
2.6
|
|
|
86.5
|
|
|
208.7
|
|
|
3.5
|
|
|
212.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax rate on continuing operations
|
|
35.3
|
%
|
|
|
|
35.4
|
%
|
|
35.7
|
%
|
|
|
|
36.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share - Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
1.58
|
|
|
0.05
|
|
|
$
|
1.63
|
|
|
$
|
3.92
|
|
|
0.06
|
|
|
$
|
3.98
|
|
|
Notes regarding adjustments:
|
|
(a)
|
Non-operating pension costs, which include amortization of
actuarial loss, interest cost, expected return on plan assets and
pension settlement charges. Third quarter and year-to-date 2015
include non-operating pension costs of ($4.8) and ($14.4),
respectively. Third quarter and year-to-date 2014 include
non-operating pension costs of ($2.5) and ($7.3) respectively.
|
|
(b)
|
Third quarter and year-to-date 2015 include professional fees of
($0.1) and ($3.8), respectively, and pension settlement
adjustments of $0.5 in both periods. Third quarter and
year-to-date 2014 includes pension settlement charges of ($1.3)
and acquisition transaction costs of ($0.6).
|
|
(c)
|
Tax impact of comparable earnings items. Year-to-date 2015 also
included benefit of tax law changes in the states of Connecticut
and Texas and the city of New York.
|
|
|
Year-to-date 2014 also included benefit of tax law change in the
state of New York.
|
|
|
|
|
* Non-GAAP financial measure.
|
|
Note: Amounts may not be additive due to rounding.
|
|
|
|
|
|
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
EARNINGS PER SHARE FORECAST AND OTHER INFORMATION - UNAUDITED
|
|
|
|
|
|
|
|
Comparable earnings per share from continuing operations forecast:*
|
|
Fourth Quarter
2015
|
|
Full Year
2015
|
|
EPS from continuing operations
|
|
$1.67- 1.77
|
|
$5.97 - 6.09
|
|
|
Non-operating pension costs
|
|
0.05
|
|
0.20
|
|
|
Pension settlement adjustments
|
|
—
|
|
(0.01
|
)
|
|
Benefit from tax law change
|
|
—
|
|
(0.03
|
)
|
|
Professional fees
|
|
—
|
|
0.04
|
|
|
Comparable EPS from continuing operations forecast*
|
|
$1.72 - 1.82
|
|
$6.17 - 6.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Nine Months
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Depreciation expense
|
|
|
$
|
291.4
|
|
|
269.3
|
|
|
$
|
838.1
|
|
|
781.4
|
|
|
Subcontracted transportation
|
|
|
$
|
(67.6
|
)
|
|
(80.8
|
)
|
|
$
|
(214.8
|
)
|
|
(256.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Non-GAAP financial measure.
Note: Amounts may not be additive due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151022005363/en/
Source: Ryder System, Inc.