-
Record Q4 Comparable EPS from Continuing Operations Up 4% to $1.66
Include Insurance-related Charges of $0.06
-
Record Q4 EPS from Continuing Operations of $1.42 Include
Restructuring Charges of $0.19 Related to Workforce Reductions and
Other Items
-
Record Q4 Operating Revenue of $1.4 Billion Grows 7%; Total Revenue
Up 1% to $1.7 Billion
-
Record Full-Year Comparable EPS from Continuing Operations Up 10%
to $6.13
-
Record Full-Year EPS from Continuing Operations of $5.73 Include
Restructuring of $0.19
-
Record Full-Year Operating Revenue of $5.6 Billion Up 6%; Total
Revenue Decreases 1% to $6.6 Billion
-
2016 Comparable EPS Forecast of $6.10 to $6.30 vs. $6.13 for 2015
MIAMI--(BUSINESS WIRE)--
Ryder System, Inc. (NYSE: R), a leader in commercial fleet
management, dedicated
transportation, and supply
chain solutions, today reported fourth quarter and full-year
comparable earnings and revenue growth across all business segments.
Earnings and earnings per diluted share (EPS) from continuing operations
for the three months ended December 31 were as follows:
|
(in millions)
|
Earnings
|
|
|
Diluted EPS
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
|
2015
|
|
2014
|
|
Change
|
|
GAAP
|
|
$75.9
|
|
11.5
|
|
561%
|
|
|
$1.42
|
|
0.22
|
|
545%
|
|
Pension settlement costs
|
|
-
|
|
68.2
|
|
|
|
|
-
|
|
1.29
|
|
|
|
Non-operating pension costs
|
|
2.8
|
|
1.4
|
|
|
|
|
0.05
|
|
0.03
|
|
|
|
Restructuring costs
|
|
10.4
|
|
1.5
|
|
|
|
|
0.19
|
|
0.03
|
|
|
|
Other items
|
|
(0.3)
|
|
2.1
|
|
|
|
|
-
|
|
0.03
|
|
|
|
Comparable
|
|
$88.8
|
|
84.6
|
|
5%
|
|
|
$1.66
|
|
1.60
|
|
4%
|
The Company reported record fourth 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. Fourth quarter total revenue increased from the prior year, as
higher operating revenue was partially offset by lower fuel prices
passed through to customers and negative impacts from foreign exchange.
Operating and total revenue for the three months ended December 31 were
as follows:
|
(in millions)
|
|
Operating Revenue
|
|
|
Total Revenue
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
Change
excl. FX
|
|
|
2015
|
|
2014
|
|
Change
|
|
Total
|
|
$1,442
|
|
1,349
|
|
7%
|
|
9%
|
|
|
$1,673
|
|
1,656
|
|
1%
|
|
FMS
|
|
$999
|
|
931
|
|
7%
|
|
9%
|
|
|
$1,152
|
|
1,153
|
|
-%
|
|
DTS
|
|
$188
|
|
169
|
|
11%
|
|
11%
|
|
|
$232
|
|
222
|
|
5%
|
|
SCS
|
|
$322
|
|
311
|
|
4%
|
|
7%
|
|
|
$392
|
|
396
|
|
(1)%
|
Commenting on the Company’s results, Ryder Chairman and CEO Robert
Sanchez said, “We delivered another year of record performance with
full-year operating revenue growth of 6% and a double-digit increase in
comparable earnings, in the face of a more challenging used vehicle
sales environment in the second half of the year. We saw continued
growth across all contractual product lines, driven by secular trends
and our sales and marketing initiatives. We were especially pleased with
the continued strong sales activity and fleet growth in our core full
service lease product. We ended 2015 with record lease fleet growth of
6,800 vehicles, significantly exceeding our initial full-year plan of
4,000 vehicles. This represents our fourth consecutive year of organic
lease fleet growth.
“Fourth quarter comparable EPS reflected used tractor pricing and rental
demand that were at the low end of our forecast. Based on the weaker
rental market, we made a decision to further reduce the rental fleet
during the fourth quarter to position it more conservatively for 2016.
These actions resulted in additional costs to prepare those vehicles for
sale. Results also included $0.06 of insurance-related charges not
contemplated in our forecast.
“We enter 2016 well positioned for continued growth and progress toward
our strategic objective to penetrate non-outsourced markets. The strong
contractual sales we continued to see through year end across all three
business segments and our robust pipeline of active deals reflect the
increased effectiveness of sales efforts and the ongoing benefits of
secular trends that favor outsourcing.”
Fourth Quarter Business Segment Operating Results
Fleet Management Solutions
In the FMS business segment, operating revenue (revenue excluding fuel)
in the fourth quarter of 2015 was $999.4 million, up 7% (or 9% excluding
foreign exchange) compared with the year-earlier period. Total revenue
in the fourth quarter of 2015 was $1.15 billion, comparable with the
same period of 2014, as the operating revenue increase was offset by
lower fuel costs passed through to customers and negative impacts from
foreign exchange. Full service lease revenue increased 7% (or 9%
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 6,800 from the year-earlier
period and grew by 1,600 vehicles sequentially from the third quarter of
2015. Commercial rental revenue grew 6% (or 8% excluding foreign
exchange) reflecting increased demand and higher pricing in the U.S.
Fuel services revenue decreased 31%, reflecting lower fuel prices passed
through to customers.
FMS earnings before tax were $123.5 million in the fourth quarter of
2015, up 1% compared with $122.3 million in the same period of 2014.
Increased earnings primarily reflect higher full service lease results,
and solid commercial rental performance, largely offset by lower used
vehicle sales results, as well as higher maintenance costs from
downsizing the rental fleet and planned initiatives to reduce
out-of-service vehicles. Full service lease results benefited from fleet
growth and lower depreciation associated with increased residual values.
Solid commercial rental performance was driven by increased demand and
higher pricing in the U.S., on a 7% larger average global fleet,
partially offset by lower fleet utilization. Global rental power fleet
utilization was 77.6% for the fourth quarter, down 250 basis points from
the year-earlier period, reflecting unusually high utilization in the
prior year, and a later start to the holiday shipping season in 2015.
Used vehicle sales results decreased due to lower tractor pricing and
lower volumes, particularly with power units. FMS earnings before tax as
a percentage of operating revenue were 12.4% in the fourth quarter of
2015, down 70 basis points from 13.1% in the same quarter a year ago,
driven by lower used vehicle sales results.
Dedicated Transportation Solutions
In the DTS business segment, fourth quarter 2015 operating revenue
(revenue excluding fuel and subcontracted transportation), was $187.6
million, up 11% 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 fourth quarter of 2015 was $232.4 million,
up 5% from the year-earlier period, as increased operating revenue was
partially offset by lower fuel costs passed through to customers.
DTS earnings before tax of $11.1 million increased 1% in the fourth
quarter of 2015 compared with $11.0 million in 2014. DTS fourth quarter
2015 earnings results reflect the impact of operating revenue growth and
overhead cost improvements, offset by $1.5 million of customer
bankruptcy-related charges. DTS earnings before tax as a percentage of
operating revenue were 5.9% in the fourth quarter of 2015, down 60 basis
points from 6.5% in the year-earlier period.
Supply Chain Solutions
In the SCS business segment, fourth quarter 2015 operating revenue
(revenue excluding fuel and subcontracted transportation) was $322.1
million, up 4% (or 7% 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 $392.5 million, compared with $396.2 million the same quarter a
year ago, as increased operating revenue was more than offset by
negative impacts from foreign exchange, lower purchased transportation
costs and lower fuel costs passed through to customers.
SCS earnings before tax of $23.8 million increased 5% in the fourth
quarter of 2015 compared with $22.7 million in 2014. SCS fourth quarter
2015 earnings results reflect the impact of operating revenue growth,
favorable margins, and overhead cost improvements, partially offset by a
$2.2 million insurance-related charge associated with a large medical
claim. SCS earnings before tax as a percentage of operating revenue were
7.4% in the fourth quarter of 2015, up 10 basis points from 7.3% 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 fourth quarter of 2015, unallocated CSS
costs were $15.6 million, compared with $15.2 million reported in the
year-earlier period. Unallocated CSS costs increased slightly due to a
$2.8 million charge related to settlement of a customer-extended
insurance claim offset by lower compensation-related costs and a higher
allocation of marketing-related costs to the business segments.
Items Excluded from Comparable Earnings
Comparable fourth quarter 2015 results excluded pre-tax restructuring
and other charges of $14.2 million ($10.4 million after tax), or $0.19
per diluted share. Restructuring charges included $0.11 per diluted
share related to workforce reductions of approximately 250 employees and
$0.08 per diluted share related to the pending divestiture of a small
logistics operation in Canada. The Company expects the workforce
reductions to produce annual savings of $0.26 per diluted share
beginning early in the first quarter of 2016.
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 ($2.8 million after
tax) or $0.05 per diluted share in the fourth 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.
As previously disclosed, in the fourth quarter of 2014, the Company
offered former employees a one-time option to receive a lump sum
distribution of their vested pension benefits, resulting in actuarial
losses of $97.2 million ($61.3 million after tax), or $1.16 per diluted
share. Fourth quarter 2014 comparable results also excluded other
charges of $11.3 million ($6.9 million after tax) or $0.13 per diluted
share associated with multi-employer pension plan settlement charges. No
such pension settlement-related charges were incurred in the fourth
quarter of 2015.
Income Taxes
The Company’s effective income tax rate from continuing operations for
the fourth quarter of 2015 was 32.0% of pre-tax earnings, compared with
15.1% in the year-earlier period. The comparable effective income tax
rate for the fourth quarter of 2015 was 32.1% of earnings before tax,
compared with 34.4% in the year-earlier period. The fourth quarter of
2015 reflects a $2.0 million benefit arising from a favorable Canadian
income tax settlement.
Capital Expenditures
Capital expenditures from continuing operations increased to $2.70
billion for 2015, compared with $2.30 billion in 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 $2.27 billion in 2015, up from $1.80 billion in 2014.
Cash Flow
Operating cash flow from continuing operations in 2015 was $1.44
billion, up from $1.38 billion in 2014, reflecting higher earnings.
Total cash generated from continuing operations (including proceeds from
used vehicle sales) in 2015 was $1.94 billion, consistent with 2014.
Free cash flow from continuing operations in 2015 was negative $728
million, compared with negative $315 million in 2014, reflecting
increased net capital expenditures.
Leverage
Total debt as of December 31, 2015 increased by $787.2 million compared
with year-end 2014, due to investments in vehicles to fund growth. Debt
to equity as of December 31, 2015 was 278% compared with 260% at
year-end 2014. Debt to equity increased due to foreign exchange effects
and investments to fund growth. Total debt to equity was slightly above
Ryder’s long-term target range of 225% to 275%. In December 2015, the
Company authorized a new share repurchase program to mitigate the
dilutive impact of shares issued under the Company's employee stock
plans. The program authorizes the repurchase of up to two million shares
of common stock, and includes 0.5 million shares that were not
repurchased under the previous program, which expired in December 2015.
Based on forecasted leverage, the Company anticipates resuming
anti-dilutive share repurchases in the second half of the year.
2016 Earnings Forecast
Commenting on the Company’s outlook, Mr. Sanchez said, “In 2016, we
expect to deliver another year of solid revenue growth. We are
forecasting stable to modestly higher earnings assuming a very weak used
tractor sales market and a soft freight environment. Based on forecasted
2016 business levels, we’ve taken necessary cost actions including a
cutback in discretionary spending and a modest reduction in workforce.
We anticipate strong earnings growth in our contractual businesses
across all three segments, as well as benefits from cost-reduction
actions.
“We have assumed a further deterioration in used vehicle pricing, with
tractor pricing dropping by around 20% from the peak in the second
quarter 2015. Given the uncertainty around 2016 freight levels, we have
also planned for lower rental demand and minimal rental capital
spending, reducing our exposure in this transactional business.
“We anticipate that secular trends favoring outsourcing will drive
continued growth in our contractual businesses. We plan to launch
additional new products and are excited about their prospects for
long-term growth. We expect significant lease fleet growth of 3,500
vehicles. While at a lower rate than 2015 due to a slower expected
freight environment, this would be the Company’s second highest year of
organic lease fleet growth. Our supply chain and dedicated
transportation businesses are expected to deliver double-digit earnings
improvement, driven by new sales activity.
“We expect positive free cash flow in 2016, demonstrating the
counter-cyclical nature of our business model. Given the increase in
free cash flow, we expect leverage to significantly decline during the
year. This decline will provide additional balance sheet flexibility and
based on forecasted leverage, we expect to resume anti-dilutive share
repurchases in the second half of the year, with year-end leverage
expected near the midpoint of our long-term range.”
Ryder forecasts full-year 2016 comparable earnings from continuing
operations of $6.10 to $6.30 per diluted share, compared with $6.13 per
diluted share in 2015. Full-year earnings comparisons exclude
non-operating pension costs of $0.27 per diluted share in 2016, as well
as non-operating pension, restructuring and other net charges of $0.40
in 2015. Operating revenue for the full-year 2016 is forecast to be up
5% to approximately $5.8 billion. Total revenue for the full-year 2016
is forecast to be up 6% to approximately $7.0 billion. The Company is
also establishing a first quarter 2016 comparable earnings forecast of
$1.03 to $1.08 per diluted share, compared with $1.08 in the first
quarter of 2015. First quarter comparisons reflect significant used
vehicle sales headwinds and softer rental performance in 2016, as well
as an atypical fuel benefit in the prior year. First quarter earnings
comparisons exclude pension costs of $0.07 per diluted share in 2016.
|
Supplemental Company Information
|
|
|
|
Fourth Quarter Net Earnings
|
|
|
|
|
|
|
|
|
(in millions)
|
|
Earnings
|
|
|
Diluted EPS
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
Earnings from continuing operations
|
|
$75.9
|
|
11.5
|
|
|
$1.42
|
|
0.22
|
|
Discontinued operations(1)
|
|
0.3
|
|
(0.4)
|
|
|
0.01
|
|
(0.01)
|
|
Net earnings
|
|
$76.2
|
|
11.1
|
|
|
$1.43
|
|
0.21
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Previously announced in 2009
|
|
|
|
|
|
|
|
|
|
Full-Year Operating Results
|
(in millions)
|
|
Twelve months ended December 31
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
Total revenue
|
|
$6,572
|
|
6,639
|
|
(1)%
|
|
Operating revenue (1)
|
|
$5,561
|
|
5,252
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
$306.0
|
|
220.2
|
|
39%
|
|
Comparable earnings from continuing operations
|
|
$327.3
|
|
296.9
|
|
10%
|
|
Net earnings
|
|
$304.8
|
|
218.3
|
|
40%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (EPS) – Diluted
|
|
|
|
|
|
|
|
Continuing operations
|
|
$5.73
|
|
4.14
|
|
38%
|
|
Comparable
|
|
$6.13
|
|
5.58
|
|
10%
|
|
Net earnings
|
|
$5.71
|
|
4.11
|
|
39%
|
|
|
|
|
|
|
|
|
|
(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 a broad range of services to help businesses of all sizes,
across virtually every industry, deliver for their customers. From
leasing, maintenance, and fueling, to commercial rental and used
vehicle sales, customers rely on Ryder’s expertise to help them lower
their costs, redirect capital to other parts of their business, and
focus on what they do best – so they can grow.
-
Dedicated
Transportation Solutions – Ryder’s DTS business segment combines
the best of Ryder’s leasing and maintenance capability with the safest
and most professional drivers in the industry. With a dedicated
transportation solution, Ryder helps customers increase their
competitive position, reduce risk, and integrate their transportation
needs with their overall supply chain.
-
Supply
Chain Solutions – Ryder’s SCS business segment optimizes
logistics networks to make them more responsive and able to be
leveraged as a competitive advantage. Globally-recognized brands in
the automotive, consumer goods, food and beverage, healthcare,
industrial, oil and gas, technology, and retail industries rely on
Ryder’s leading-edge technologies and world-class logistics engineers
to help them deliver the goods that consumers use every day.
Notations
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
market trends, earnings performance, revenue in our business segments,
fleet size, 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, free cash flow, capital
expenditures, anticipated resumption of our share repurchase program and
the impact and adequacy of steps we have taken to address our cost
structure, including workforce reductions. 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,
further decreases in commercial rental demand or poor acceptance of
rental pricing, our ability to return out of service vehicles to the
fleet, availability of rental vehicles to meet demand and availability
of labor to maintain our fleet at normalized levels, worsening of 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 Tuesday,
February 2, 2016, 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: PWXW6468201 and Passcode: RYDER.
-
To access audio replays of the conference and
view a presentation of Ryder’s earnings results: Dial 1-800-813-5527
(outside U.S. dial 1-203-369-3347), 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 December 31, 2015 and 2014
|
|
(In millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Twelve Months
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Lease and rental revenues
|
|
$
|
810.6
|
|
|
759.2
|
|
|
$
|
3,121.6
|
|
|
2,939.4
|
|
|
Services revenue
|
|
746.4
|
|
|
728.3
|
|
|
2,912.1
|
|
|
2,911.5
|
|
|
Fuel services revenue
|
|
115.8
|
|
|
168.8
|
|
|
538.3
|
|
|
787.9
|
|
|
Total revenues
|
|
1,672.7
|
|
|
1,656.3
|
|
|
6,571.9
|
|
|
6,638.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of lease and rental
|
|
553.2
|
|
|
514.5
|
|
|
2,153.5
|
|
|
2,036.9
|
|
|
Cost of services
|
|
621.0
|
|
|
608.8
|
|
|
2,413.2
|
|
|
2,447.9
|
|
|
Cost of fuel services
|
|
111.8
|
|
|
162.5
|
|
|
519.8
|
|
|
768.3
|
|
|
Other operating expenses
|
|
36.2
|
|
|
30.0
|
|
|
135.0
|
|
|
126.6
|
|
|
Selling, general and administrative expenses
|
|
219.9
|
|
|
222.8
|
|
|
844.5
|
|
|
817.0
|
|
|
Pension lump sum settlement expense
|
|
—
|
|
|
97.2
|
|
|
—
|
|
|
97.2
|
|
|
Gains on vehicle sales, net
|
|
(25.7
|
)
|
|
(30.0
|
)
|
|
(117.8
|
)
|
|
(126.8
|
)
|
|
Interest expense
|
|
35.6
|
|
|
36.8
|
|
|
150.4
|
|
|
144.7
|
|
|
Miscellaneous income, net
|
|
(5.1
|
)
|
|
(2.4
|
)
|
|
(10.2
|
)
|
|
(13.6
|
)
|
|
Restructuring and other charges, net
|
|
14.2
|
|
|
2.4
|
|
|
14.2
|
|
|
2.4
|
|
|
|
|
1,561.1
|
|
|
1,642.8
|
|
|
6,102.7
|
|
|
6,300.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
111.7
|
|
|
13.5
|
|
|
469.2
|
|
|
338.3
|
|
|
Provision for income taxes
|
|
35.8
|
|
|
2.0
|
|
|
163.2
|
|
|
118.0
|
|
|
Earnings from continuing operations
|
|
75.9
|
|
|
11.5
|
|
|
306.0
|
|
|
220.2
|
|
|
Earnings (loss) from discontinued operations, net of tax
|
|
0.3
|
|
|
(0.4
|
)
|
|
(1.2
|
)
|
|
(1.9
|
)
|
|
Net earnings
|
|
$
|
76.2
|
|
|
11.1
|
|
|
$
|
304.8
|
|
|
218.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share - Diluted
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
1.42
|
|
|
0.22
|
|
|
$
|
5.73
|
|
|
4.14
|
|
|
Discontinued operations
|
|
—
|
|
|
(0.01
|
)
|
|
(0.02
|
)
|
|
(0.03
|
)
|
|
Net earnings
|
|
$
|
1.43
|
|
|
0.21
|
|
|
$
|
5.71
|
|
|
4.11
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share information - Diluted
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
$
|
75.9
|
|
|
11.5
|
|
|
$
|
306.0
|
|
|
220.2
|
|
|
Less: Distributed and undistributed earnings allocated to unvested
stock
|
|
(0.2
|
)
|
|
—
|
|
|
(0.9
|
)
|
|
(0.9
|
)
|
|
Earnings from continuing operations available to common stockholders
|
|
$
|
75.7
|
|
|
11.5
|
|
|
$
|
305.1
|
|
|
219.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding - Diluted
|
|
53.3
|
|
|
53.0
|
|
|
53.3
|
|
|
53.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable earnings per share from continuing operations: *
|
|
|
|
|
|
|
|
|
|
EPS from continuing operations
|
|
$
|
1.42
|
|
|
0.22
|
|
|
$
|
5.73
|
|
|
4.14
|
|
|
Non-operating pension costs
|
|
0.05
|
|
|
0.03
|
|
|
0.21
|
|
|
0.10
|
|
|
Restructuring and other charges (recoveries), net
|
|
0.19
|
|
|
0.03
|
|
|
0.19
|
|
|
0.03
|
|
|
Consulting fees
|
|
—
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
|
Tax law changes and/or benefits from reserve reversals
|
|
—
|
|
|
—
|
|
|
(0.04
|
)
|
|
(0.03
|
)
|
|
Pension settlement (benefit) charges
|
|
—
|
|
|
0.13
|
|
|
(0.01
|
)
|
|
0.14
|
|
|
Pension lump sum settlement expense
|
|
—
|
|
|
1.16
|
|
|
—
|
|
|
1.16
|
|
|
Acquisition-related tax adjustment
|
|
—
|
|
|
0.03
|
|
|
—
|
|
|
0.03
|
|
|
Acquisition transaction costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
Comparable EPS from continuing operations *
|
|
$
|
1.66
|
|
|
1.60
|
|
|
$
|
6.13
|
|
|
5.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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)
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
Cash and cash equivalents
|
$
|
60.9
|
|
|
50.1
|
|
Other current assets
|
1,037.4
|
|
|
993.6
|
|
Revenue earning equipment, net
|
8,184.7
|
|
|
7,201.9
|
|
Operating property and equipment, net
|
715.0
|
|
|
699.6
|
|
Other assets
|
969.8
|
|
|
905.7
|
|
|
$
|
10,967.8
|
|
|
9,850.9
|
|
|
|
|
|
|
Liabilities and shareholders' equity:
|
|
|
|
|
Current liabilities
|
$
|
1,045.7
|
|
|
1,074.5
|
|
Total debt
|
5,517.9
|
|
|
4,730.6
|
|
Other non-current liabilities (including deferred income taxes)
|
2,417.1
|
|
|
2,226.6
|
|
Shareholders' equity
|
1,987.1
|
|
|
1,819.1
|
|
|
$
|
10,967.8
|
|
|
9,850.9
|
|
SELECTED KEY RATIOS AND METRICS
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
Debt to equity
|
278%
|
|
260%
|
|
Effective interest rate (average cost of debt)
|
2.9%
|
|
3.1%
|
|
|
|
Twelve months ended December 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Cash provided by operating activities from continuing operations
|
|
$
|
1,441.8
|
|
|
1,382.8
|
|
|
Free cash flow *
|
|
(727.7
|
)
|
|
(315.1
|
)
|
|
Capital expenditures paid
|
|
2,668.0
|
|
|
2,259.2
|
|
|
|
|
|
|
|
|
Capital expenditures (accrual basis)
|
|
$
|
2,696.1
|
|
|
2,298.2
|
|
|
Less: Proceeds from sales (primarily revenue earning equipment)
|
|
(427.5
|
)
|
|
(497.0
|
)
|
|
Net capital expenditures
|
|
$
|
2,268.6
|
|
|
1,801.3
|
|
|
|
|
Twelve months ended December 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Return on average shareholders' equity
|
|
16.1%
|
|
11.3%
|
|
Return on average assets
|
|
2.9%
|
|
2.3%
|
|
Adjusted return on capital *
|
|
5.8%
|
|
5.8%
|
|
Weighted average cost of capital
|
|
4.4%
|
|
4.7%
|
|
Return on capital spread **
|
|
1.4%
|
|
1.1%
|
|
|
|
* 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 December 31, 2015 and 2014
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Twelve Months
|
|
|
|
2015
|
|
2014
|
|
B(W)
|
|
2015
|
|
2014
|
|
B(W)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet Management Solutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full service lease
|
|
$
|
624.6
|
|
|
582.2
|
|
|
7%
|
|
$
|
2,406.7
|
|
|
2,276.4
|
|
|
6%
|
|
Contract maintenance
|
|
48.9
|
|
|
47.7
|
|
|
2%
|
|
192.5
|
|
|
184.6
|
|
|
4%
|
|
Contractual revenue
|
|
673.5
|
|
|
630.0
|
|
|
7%
|
|
2,599.2
|
|
|
2,461.0
|
|
|
6%
|
|
Commercial rental
|
|
245.3
|
|
|
230.9
|
|
|
6%
|
|
940.0
|
|
|
877.0
|
|
|
7%
|
|
Contract-related maintenance
|
|
59.6
|
|
|
52.1
|
|
|
14%
|
|
229.2
|
|
|
221.5
|
|
|
3%
|
|
Other
|
|
21.0
|
|
|
17.9
|
|
|
17%
|
|
77.6
|
|
|
71.1
|
|
|
9%
|
|
Fuel services revenue
|
|
152.2
|
|
|
221.7
|
|
|
(31)%
|
|
699.6
|
|
|
1,025.2
|
|
|
(32)%
|
|
Total Fleet Management Solutions
|
|
1,151.6
|
|
|
1,152.5
|
|
|
—%
|
|
4,545.7
|
|
|
4,655.8
|
|
|
(2)%
|
|
Dedicated Transportation Solutions
|
|
232.4
|
|
|
222.3
|
|
|
5%
|
|
895.5
|
|
|
899.8
|
|
|
—%
|
|
Supply Chain Solutions
|
|
392.5
|
|
|
396.2
|
|
|
(1)%
|
|
1,547.8
|
|
|
1,561.3
|
|
|
(1)%
|
|
Eliminations
|
|
(103.8
|
)
|
|
(114.6
|
)
|
|
9%
|
|
(417.1
|
)
|
|
(478.1
|
)
|
|
13%
|
|
Total revenue
|
|
$
|
1,672.7
|
|
|
1,656.3
|
|
|
1%
|
|
$
|
6,571.9
|
|
|
6,638.8
|
|
|
(1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenue: *
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet Management Solutions
|
|
$
|
999.4
|
|
|
930.8
|
|
|
7%
|
|
$
|
3,846.0
|
|
|
3,630.5
|
|
|
6%
|
|
Dedicated Transportation Solutions
|
|
187.6
|
|
|
169.4
|
|
|
11%
|
|
714.5
|
|
|
661.2
|
|
|
8%
|
|
Supply Chain Solutions
|
|
322.1
|
|
|
310.8
|
|
|
4%
|
|
1,256.3
|
|
|
1,201.3
|
|
|
5%
|
|
Eliminations
|
|
(67.3
|
)
|
|
(61.7
|
)
|
|
(9)%
|
|
(255.7
|
)
|
|
(240.8
|
)
|
|
(6)%
|
|
Operating revenue
|
|
$
|
1,441.7
|
|
|
1,349.3
|
|
|
7%
|
|
$
|
5,561.1
|
|
|
5,252.2
|
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business segment earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet Management Solutions
|
|
$
|
123.5
|
|
|
122.3
|
|
|
1%
|
|
$
|
462.1
|
|
|
433.7
|
|
|
7%
|
|
Dedicated Transportation Solutions
|
|
11.1
|
|
|
11.0
|
|
|
1%
|
|
45.8
|
|
|
44.6
|
|
|
3%
|
|
Supply Chain Solutions
|
|
23.8
|
|
|
22.7
|
|
|
5%
|
|
93.8
|
|
|
77.8
|
|
|
21%
|
|
Eliminations
|
|
(12.1
|
)
|
|
(11.6
|
)
|
|
(4)%
|
|
(47.2
|
)
|
|
(41.4
|
)
|
|
(14)%
|
|
|
|
146.3
|
|
|
144.3
|
|
|
1%
|
|
554.5
|
|
|
514.7
|
|
|
8%
|
|
Unallocated Central Support Services
|
|
(15.6
|
)
|
|
(15.2
|
)
|
|
(2)%
|
|
(48.5
|
)
|
|
(51.7
|
)
|
|
6%
|
|
Non-operating pension costs
|
|
(4.8
|
)
|
|
(2.5
|
)
|
|
(97)%
|
|
(19.2
|
)
|
|
(9.8
|
)
|
|
(96)%
|
|
Restructuring and other, net
|
|
(14.2
|
)
|
|
(113.1
|
)
|
|
87%
|
|
(17.6
|
)
|
|
(115.0
|
)
|
|
85%
|
|
Earnings from continuing operations before income taxes
|
|
111.7
|
|
|
13.5
|
|
|
NM
|
|
469.2
|
|
|
338.3
|
|
|
39%
|
|
Provision for income taxes
|
|
35.8
|
|
|
2.0
|
|
|
NM
|
|
163.2
|
|
|
118.0
|
|
|
(38)%
|
|
Earnings from continuing operations
|
|
$
|
75.9
|
|
|
11.5
|
|
|
NM
|
|
$
|
306.0
|
|
|
220.2
|
|
|
39%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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 December 31, 2015 and 2014
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Twelve Months
|
|
|
|
2015
|
|
2014
|
|
B(W)
|
|
2015
|
|
2014
|
|
B(W)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet Management Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
1,151.6
|
|
|
1,152.5
|
|
|
—
|
%
|
|
$
|
4,545.7
|
|
|
4,655.8
|
|
|
(2
|
)%
|
|
Fuel services revenue(a)
|
|
(152.2
|
)
|
|
(221.7
|
)
|
|
(31
|
)%
|
|
(699.6
|
)
|
|
(1,025.2
|
)
|
|
(32
|
)%
|
|
Operating revenue *
|
|
$
|
999.4
|
|
|
930.8
|
|
|
7
|
%
|
|
$
|
3,846.0
|
|
|
3,630.5
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment earnings before income taxes
|
|
$
|
123.5
|
|
|
122.3
|
|
|
1
|
%
|
|
$
|
462.1
|
|
|
433.7
|
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of total revenue
|
|
10.7
|
%
|
|
10.6
|
%
|
|
|
|
10.2
|
%
|
|
9.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of operating revenue *
|
|
12.4
|
%
|
|
13.1
|
%
|
|
|
|
12.0
|
%
|
|
11.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dedicated Transportation Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
232.4
|
|
|
222.3
|
|
|
5
|
%
|
|
$
|
895.5
|
|
|
899.8
|
|
|
—
|
%
|
|
Subcontracted transportation
|
|
(18.4
|
)
|
|
(15.6
|
)
|
|
18
|
%
|
|
(61.2
|
)
|
|
(72.0
|
)
|
|
(15
|
)%
|
|
Fuel costs(a)
|
|
(26.5
|
)
|
|
(37.3
|
)
|
|
(29
|
)%
|
|
(119.9
|
)
|
|
(166.5
|
)
|
|
(28
|
)%
|
|
Operating revenue *
|
|
$
|
187.6
|
|
|
169.4
|
|
|
11
|
%
|
|
$
|
714.5
|
|
|
661.2
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment earnings before income taxes
|
|
$
|
11.1
|
|
|
11.0
|
|
|
1
|
%
|
|
$
|
45.8
|
|
|
44.6
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of total revenue
|
|
4.8
|
%
|
|
5.0
|
%
|
|
|
|
5.1
|
%
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of operating revenue *
|
|
5.9
|
%
|
|
6.5
|
%
|
|
|
|
6.4
|
%
|
|
6.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply Chain Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
392.5
|
|
|
396.2
|
|
|
(1
|
)%
|
|
$
|
1,547.8
|
|
|
1,561.3
|
|
|
(1
|
)%
|
|
Subcontracted transportation
|
|
(54.9
|
)
|
|
(64.1
|
)
|
|
(14
|
)%
|
|
(226.9
|
)
|
|
(264.4
|
)
|
|
(14
|
)%
|
|
Fuel costs(a)
|
|
(15.5
|
)
|
|
(21.2
|
)
|
|
(27
|
)%
|
|
(64.6
|
)
|
|
(95.7
|
)
|
|
(33
|
)%
|
|
Operating revenue *
|
|
$
|
322.1
|
|
|
310.8
|
|
|
4
|
%
|
|
$
|
1,256.3
|
|
|
1,201.3
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment earnings before income taxes
|
|
$
|
23.8
|
|
|
22.7
|
|
|
5
|
%
|
|
$
|
93.8
|
|
|
77.8
|
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of total revenue
|
|
6.1
|
%
|
|
5.7
|
%
|
|
|
|
6.1
|
%
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes as % of operating revenue *
|
|
7.4
|
%
|
|
7.3
|
%
|
|
|
|
7.5
|
%
|
|
6.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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
December 31,
|
|
Twelve months ended
December 31,
|
|
Change 2015/2014
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Three
Months
|
|
Twelve
Months
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full service lease
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fleet count
|
|
131,100
|
|
|
124,200
|
|
|
128,800
|
|
|
123,400
|
|
|
6%
|
|
4%
|
|
End of period fleet count
|
|
131,800
|
|
|
125,500
|
|
|
131,800
|
|
|
125,500
|
|
|
5%
|
|
5%
|
|
Miles/unit per day change - % (a)
|
|
1.3
|
%
|
|
2.8
|
%
|
|
0.1
|
%
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial rental
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fleet count
|
|
43,200
|
|
|
40,400
|
|
|
42,400
|
|
|
39,800
|
|
|
7%
|
|
7%
|
|
End of period fleet count
|
|
42,100
|
|
|
39,900
|
|
|
42,100
|
|
|
39,900
|
|
|
6%
|
|
6%
|
|
Rental utilization - power units
|
|
77.6
|
%
|
|
80.1
|
%
|
|
76.5
|
%
|
|
77.6
|
%
|
|
(250) bps
|
|
(110) bps
|
|
Rental rate change - % (b)
|
|
2.6
|
%
|
|
2.8
|
%
|
|
3.3
|
%
|
|
4.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer vehicles under
|
|
|
|
|
|
|
|
|
|
|
|
contract maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fleet count
|
|
45,500
|
|
|
41,600
|
|
|
43,300
|
|
|
39,500
|
|
|
9%
|
|
10%
|
|
End of period fleet count
|
|
46,700
|
|
|
42,400
|
|
|
46,700
|
|
|
42,400
|
|
|
10%
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer vehicles under
|
|
|
|
|
|
|
|
|
|
|
|
on-demand maintenance (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet serviced during the period
|
|
7,200
|
|
|
5,600
|
|
|
20,000
|
|
|
17,000
|
|
|
29%
|
|
18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fleet count (d)
|
|
7,600
|
|
|
7,100
|
|
|
7,400
|
|
|
7,000
|
|
|
7%
|
|
6%
|
|
End of period fleet count(d)
|
|
7,600
|
|
|
7,200
|
|
|
7,600
|
|
|
7,200
|
|
|
6%
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fleet count (d)
|
|
6,400
|
|
|
5,500
|
|
|
6,000
|
|
|
5,500
|
|
|
16%
|
|
9%
|
|
End of period fleet count(d)
|
|
6,600
|
|
|
5,500
|
|
|
6,600
|
|
|
5,500
|
|
|
20%
|
|
20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Used vehicle sales (UVS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average UVS inventory
|
|
6,900
|
|
|
5,600
|
|
|
6,100
|
|
|
6,500
|
|
|
23%
|
|
(6)%
|
|
End of period fleet count
|
|
8,000
|
|
|
5,500
|
|
|
8,000
|
|
|
5,500
|
|
|
45%
|
|
45%
|
|
Used vehicles sold
|
|
4,500
|
|
|
4,600
|
|
|
17,900
|
|
|
20,700
|
|
|
(2)%
|
|
(14)%
|
|
UVS pricing change - % (e)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tractors
|
|
(5
|
)%
|
|
17
|
%
|
|
6
|
%
|
|
12
|
%
|
|
|
|
|
|
Trucks
|
|
5
|
%
|
|
19
|
%
|
|
9
|
%
|
|
15
|
%
|
|
|
|
|
|
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
December 31,
|
|
Twelve months ended
December 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
1,672.7
|
|
|
1,656.3
|
|
|
$
|
6,571.9
|
|
|
6,638.8
|
|
|
Fuel
|
|
(157.7
|
)
|
|
(227.3
|
)
|
|
(722.7
|
)
|
|
(1,050.1
|
)
|
|
Subcontracted transportation
|
|
(73.3
|
)
|
|
(79.6
|
)
|
|
(288.1
|
)
|
|
(336.4
|
)
|
|
Operating revenue *
|
|
$
|
1,441.7
|
|
|
1,349.3
|
|
|
$
|
5,561.1
|
|
|
5,252.2
|
|
|
OPERATING REVENUE GROWTH EXCLUDING
FOREIGN EXCHANGE RECONCILIATION
|
|
|
|
Fourth Quarter
|
|
Year-to-Date
|
|
|
|
2015 vs 2014
|
|
|
|
Growth excl
|
|
2015 vs 2014
|
|
|
|
Growth excl
|
|
|
|
Growth
|
|
Fx Impact (a)
|
|
Fx
|
|
Growth
|
|
Fx Impact (a)
|
|
Fx
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RSI Operating Revenue
|
|
7%
|
|
2%
|
|
9%
|
|
6%
|
|
2%
|
|
8%
|
|
FMS Operating Revenue
|
|
7%
|
|
2%
|
|
9%
|
|
6%
|
|
2%
|
|
8%
|
|
SCS Operating Revenue
|
|
4%
|
|
3%
|
|
7%
|
|
5%
|
|
3%
|
|
8%
|
|
Full Service Lease Revenue
|
|
7%
|
|
2%
|
|
9%
|
|
6%
|
|
2%
|
|
8%
|
|
Commercial Rental Revenue
|
|
6%
|
|
2%
|
|
8%
|
|
7%
|
|
2%
|
|
9%
|
|
CASH FLOW RECONCILIATION
|
|
Twelve months ended December 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Net cash provided by operating activities from continuing operations
|
|
$
|
1,441.8
|
|
|
1,382.8
|
|
|
Proceeds from sales (primarily revenue earning equipment)
|
|
427.5
|
|
|
497.0
|
|
|
Collections on direct finance leases
|
|
71.0
|
|
|
65.5
|
|
|
Other
|
|
—
|
|
|
(1.3
|
)
|
|
Total cash generated *
|
|
1,940.3
|
|
|
1,944.0
|
|
|
Capital expenditures
|
|
(2,668.0
|
)
|
|
(2,259.2
|
)
|
|
Free cash flow *
|
|
$
|
(727.7
|
)
|
|
(315.1
|
)
|
|
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 December 31, 2014, which was the last day of the prior year
period, rather than the actual exchange rates in effect as of
December 31, 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 December 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Net earnings (12-month rolling period)
|
|
$
|
304.8
|
|
|
218.3
|
|
|
+ Restructuring and other items
|
|
17.6
|
|
|
115.0
|
|
|
+ Income taxes
|
|
163.6
|
|
|
118.1
|
|
|
Adjusted earnings before income taxes
|
|
486.0
|
|
|
451.4
|
|
|
+ Adjustments
|
|
150.6
|
|
|
145.0
|
|
|
- Adjusted income taxes
|
|
(224.0
|
)
|
|
(213.7
|
)
|
|
= Adjusted net earnings for ROC (numerator)
|
|
$
|
412.6
|
|
|
382.7
|
|
|
|
|
|
|
|
|
Average total debt
|
|
$
|
5,177.0
|
|
|
4,653.5
|
|
|
Average off-balance sheet debt
|
|
1.5
|
|
|
1.9
|
|
|
Average shareholders' equity
|
|
1,894.9
|
|
|
1,925.8
|
|
|
Adjustment to equity (a)
|
|
10.8
|
|
|
7.8
|
|
|
Adjusted average total capital (denominator)
|
|
$
|
7,084.2
|
|
|
6,589.0
|
|
|
|
|
|
|
|
|
Adjusted ROC *
|
|
5.8
|
%
|
|
5.8
|
%
|
|
|
|
|
|
|
|
|
|
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
|
|
Twelve Months
|
|
|
|
2015
|
|
2015
|
|
|
|
Reported
|
|
|
|
Comparable
|
|
Reported
|
|
|
|
Comparable
|
|
|
|
Earnings
|
|
Adjustment
|
|
Earnings *
|
|
Earnings
|
|
Adjustment
|
|
Earnings *
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,672.7
|
|
|
—
|
|
|
$
|
1,672.7
|
|
|
$
|
6,571.9
|
|
|
—
|
|
|
$
|
6,571.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of lease and rental
|
|
553.2
|
|
|
—
|
|
|
553.2
|
|
|
2,153.5
|
|
|
—
|
|
|
2,153.5
|
|
|
Cost of services
|
|
621.0
|
|
|
—
|
|
|
621.0
|
|
|
2,413.2
|
|
|
—
|
|
|
2,413.2
|
|
|
Cost of fuel services
|
|
111.8
|
|
|
—
|
|
|
111.8
|
|
|
519.8
|
|
|
—
|
|
|
519.8
|
|
|
Other operating expenses
|
|
36.2
|
|
|
—
|
|
|
36.2
|
|
|
135.0
|
|
|
—
|
|
|
135.0
|
|
|
Selling, general and administrative expenses (a)(b)
|
|
219.9
|
|
|
(4.8
|
)
|
|
215.1
|
|
|
844.5
|
|
|
(22.5
|
)
|
|
822.0
|
|
|
Gains on vehicle sales, net
|
|
(25.7
|
)
|
|
—
|
|
|
(25.7
|
)
|
|
(117.8
|
)
|
|
—
|
|
|
(117.8
|
)
|
|
Interest expense
|
|
35.6
|
|
|
—
|
|
|
35.6
|
|
|
150.4
|
|
|
—
|
|
|
150.4
|
|
|
Miscellaneous income, net
|
|
(5.1
|
)
|
|
—
|
|
|
(5.1
|
)
|
|
(10.2
|
)
|
|
—
|
|
|
(10.2
|
)
|
|
Restructuring and other charges, net
|
|
14.2
|
|
|
(14.2
|
)
|
|
—
|
|
|
14.2
|
|
|
(14.2
|
)
|
|
—
|
|
|
|
|
1,561.1
|
|
|
(19.1
|
)
|
|
1,542.0
|
|
|
6,102.7
|
|
|
(36.7
|
)
|
|
6,065.9
|
|
|
Earnings from continuing operations before income taxes
|
|
111.7
|
|
|
19.1
|
|
|
130.8
|
|
|
469.2
|
|
|
36.7
|
|
|
506.0
|
|
|
Provision for income taxes (c)
|
|
(35.8
|
)
|
|
(6.2
|
)
|
|
(41.9
|
)
|
|
(163.2
|
)
|
|
(15.4
|
)
|
|
(178.6
|
)
|
|
Earnings from continuing operations
|
|
75.9
|
|
|
12.9
|
|
|
88.8
|
|
|
306.0
|
|
|
21.3
|
|
|
327.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax rate on continuing operations
|
|
32.0
|
%
|
|
|
|
32.1
|
%
|
|
34.8
|
%
|
|
|
|
35.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share - Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
1.42
|
|
|
0.24
|
|
|
$
|
1.66
|
|
|
$
|
5.73
|
|
|
0.40
|
|
|
$
|
6.13
|
|
|
|
|
Three Months
|
|
Twelve Months
|
|
|
|
2014
|
|
2014
|
|
|
|
Reported
|
|
|
|
Comparable
|
|
Reported
|
|
|
|
Comparable
|
|
|
|
Earnings
|
|
Adjustment
|
|
Earnings *
|
|
Earnings
|
|
Adjustment
|
|
Earnings *
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,656.3
|
|
|
|
|
$
|
1,656.3
|
|
|
$
|
6,638.8
|
|
|
|
|
$
|
6,638.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of lease and rental
|
|
514.5
|
|
|
—
|
|
|
514.5
|
|
|
2,036.9
|
|
|
—
|
|
|
2,036.9
|
|
|
Cost of services
|
|
608.8
|
|
|
—
|
|
|
608.8
|
|
|
2,447.9
|
|
|
—
|
|
|
2,447.9
|
|
|
Cost of fuel services
|
|
162.5
|
|
|
—
|
|
|
162.5
|
|
|
768.3
|
|
|
—
|
|
|
768.3
|
|
|
Other operating expenses
|
|
30.0
|
|
|
—
|
|
|
30.0
|
|
|
126.6
|
|
|
—
|
|
|
126.6
|
|
|
Selling, general and administrative expenses (a)(b)
|
|
222.8
|
|
|
(16.0
|
)
|
|
206.9
|
|
|
817.0
|
|
|
(25.1
|
)
|
|
791.9
|
|
|
Pension lump sum settlement
|
|
97.2
|
|
|
(97.2
|
)
|
|
—
|
|
|
97.2
|
|
|
(97.2
|
)
|
|
—
|
|
|
Gains on vehicle sales, net
|
|
(30.0
|
)
|
|
—
|
|
|
(30.0
|
)
|
|
(126.8
|
)
|
|
—
|
|
|
(126.8
|
)
|
|
Interest expense
|
|
36.8
|
|
|
—
|
|
|
36.8
|
|
|
144.7
|
|
|
—
|
|
|
144.7
|
|
|
Miscellaneous income, net
|
|
(2.4
|
)
|
|
—
|
|
|
(2.4
|
)
|
|
(13.6
|
)
|
|
—
|
|
|
(13.6
|
)
|
|
Restructuring and other charges, net
|
|
2.4
|
|
|
(2.4
|
)
|
|
—
|
|
|
2.4
|
|
|
(2.4
|
)
|
|
—
|
|
|
|
|
1,642.8
|
|
|
(115.6
|
)
|
|
1,527.2
|
|
|
6,300.5
|
|
|
(124.7
|
)
|
|
6,175.8
|
|
|
Earnings from continuing operations before income taxes
|
|
13.5
|
|
|
115.6
|
|
|
129.1
|
|
|
338.3
|
|
|
124.7
|
|
|
463.0
|
|
|
Provision for income taxes (c)
|
|
(2.0
|
)
|
|
(42.4
|
)
|
|
(44.5
|
)
|
|
(118.0
|
)
|
|
(48.1
|
)
|
|
(166.1
|
)
|
|
Earnings from continuing operations
|
|
11.5
|
|
|
73.2
|
|
|
84.6
|
|
|
220.2
|
|
|
76.6
|
|
|
296.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax rate on continuing operations
|
|
15.1
|
%
|
|
|
|
34.4
|
%
|
|
34.9
|
%
|
|
|
|
35.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share - Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.22
|
|
|
1.38
|
|
|
$
|
1.60
|
|
|
$
|
4.14
|
|
|
1.44
|
|
|
$
|
5.58
|
|
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. Fourth quarter and year-to-date 2015 include
non-operating pension costs of ($4.8) and ($19.2), respectively.
Fourth quarter and year-to-date 2014 include non-operating pension
costs of ($2.5) and ($9.8) respectively.
|
|
(b)
|
|
Year-to-date 2015 includes consulting fees of ($3.8) and pension
settlement benefit of $0.5. Fourth quarter and year-to-date 2014
includes pension settlement charges of ($11.3) and ($12.6),
respectively, and an acquisition-related tax adjustment of ($1.8)
and consulting fees of ($0.4) in both periods. Year-to-date 2014
also includes acquisition transaction costs of ($0.6).
|
|
(c)
|
|
Tax impact of comparable earnings items. Fourth quarter and
year-to-date 2015 also includes the benefit of tax law changes
during the year in the state of Connecticut and various other
jurisdictions as well as a benefit from a Canadian tax settlement.
Year-to-date 2014 also includes the benefit of tax law changes in
the states of New York and Rhode Island.
|
|
* 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:*
|
|
First Quarter
2016
|
|
Full Year
2016
|
|
EPS from continuing operations
|
|
$0.96 - 1.01
|
|
$5.83 - 6.03
|
|
Non-operating pension costs
|
|
0.07
|
|
0.27
|
|
Comparable EPS from continuing operations forecast*
|
|
$1.03 - 1.08
|
|
$6.10 - 6.30
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
|
|
|
|
|
|
2016
|
|
Total revenue forecast
|
|
|
|
$ 6,967.1
|
|
Fuel
|
|
|
|
814.2
|
|
Subcontracted transportation
|
|
|
|
338.7
|
|
Operating revenue forecast*
|
|
|
|
$ 5,814.1
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Twelve Months
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Depreciation expense
|
|
$
|
301.8
|
|
|
276.4
|
|
|
$
|
1,139.9
|
|
|
1,057.8
|
|
Subcontracted transportation
|
|
$
|
73.3
|
|
|
79.6
|
|
|
$
|
288.1
|
|
|
336.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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/20160202005406/en/
Source: Ryder System, Inc.