-
Q3 GAAP EPS from Continuing Operations Down 6% to $1.59
-
Q3 Comparable EPS (non-GAAP) from Continuing Operations Down 4% to
$1.67
-
Record Q3 Total Revenue Grows 3% to $1.7 Billion; Record Q3
Operating Revenue (non-GAAP) Up 3% to $1.5 Billion
-
Revised Full-Year 2016 GAAP EPS Forecast Range of $5.29 to $5.44
vs. Prior Forecast of $5.49 to $5.64, Driven by a Challenging Used
Vehicle Sales Environment
-
Revised Full-Year 2016 Comparable EPS Forecast Range (non-GAAP) of
$5.70 to $5.85 vs. Prior Forecast of $5.90 to $6.05
MIAMI--(BUSINESS WIRE)--
Ryder
System, Inc. (NYSE: R), a leader in commercial fleet
management, dedicated
transportation, and supply
chain solutions, today reported third quarter earnings and revenue.
Results for the three months ended September 30 were as follows:
|
|
|
|
|
|
|
|
|
(dollars in millions, except EPS)
|
|
Earnings Before Taxes
|
|
Earnings
|
|
Diluted Earnings Per Share
|
|
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
|
GAAP
|
|
$
|
131.7
|
|
|
139.9
|
|
|
(6)%
|
|
$
|
85.1
|
|
|
90.8
|
|
|
(6)%
|
|
$
|
1.59
|
|
|
1.70
|
|
|
(6)%
|
|
Non-operating pension costs
|
|
7.2
|
|
|
4.8
|
|
|
|
|
4.2
|
|
|
2.7
|
|
|
|
|
0.08
|
|
|
0.05
|
|
|
|
|
Pension related adjustment
|
|
—
|
|
|
(0.5
|
)
|
|
|
|
—
|
|
|
(0.3
|
)
|
|
|
|
—
|
|
|
(0.01
|
)
|
|
|
|
Professional fees
|
|
—
|
|
|
0.1
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
Comparable (non-GAAP)
|
|
$
|
138.9
|
|
|
144.2
|
|
|
(4)%
|
|
$
|
89.4
|
|
|
93.3
|
|
|
(4)%
|
|
$
|
1.67
|
|
|
1.74
|
|
|
(4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company reported record third quarter total revenue and operating
revenue (a non-GAAP measure excluding all fuel and subcontracted
transportation). Total revenue increased due to higher operating
revenue, partially offset by lower fuel costs passed through to
customers. Operating revenue increased due to higher contractual revenue
in all three business segments, partially offset by lower transactional
rental revenue. Total revenue and operating revenue for the three months
ended September 30 were as follows:
|
|
|
|
|
|
|
(in millions)
|
|
Total Revenue
|
|
Operating Revenue (non-GAAP)
|
|
|
|
2016
|
|
2015
|
|
% Change
|
|
% Change
excl. FX
(non-GAAP)
|
|
2016
|
|
2015
|
|
% Change
|
|
% Change
excl. FX
|
|
Total
|
|
$
|
1,724.4
|
|
|
1,669.1
|
|
|
3%
|
|
4%
|
|
$
|
1,468.3
|
|
|
1,426.5
|
|
|
3%
|
|
4%
|
|
FMS
|
|
$
|
1,155.0
|
|
|
1,157.6
|
|
|
—%
|
|
1%
|
|
$
|
997.9
|
|
|
988.4
|
|
|
1%
|
|
2%
|
|
DTS
|
|
$
|
260.9
|
|
|
226.9
|
|
|
15%
|
|
15%
|
|
$
|
196.6
|
|
|
184.2
|
|
|
7%
|
|
7%
|
|
SCS
|
|
$
|
416.9
|
|
|
387.3
|
|
|
8%
|
|
9%
|
|
$
|
345.5
|
|
|
318.8
|
|
|
8%
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commenting on the Company’s third quarter results, Ryder Chairman and
CEO Robert Sanchez said, "We're pleased that we performed in line with
our third quarter forecast, despite a very challenging transactional
rental and used vehicle sales market. Our team’s proactive efforts,
including right-sizing the rental fleet earlier in the year, allowed us
to maintain stable rental pricing and realize utilization within our
target range. We maintained used vehicle pricing in line with
expectations in the quarter; however, used vehicle sales volumes were
lower than anticipated. We also benefited from lower than expected
overhead spending.
"Looking beyond our transactional offerings, our core contractual
offerings - full service lease, dedicated transportation, and supply
chain solutions - all demonstrated strong revenue growth of 7% or above
in the quarter. In our lease product line, we also remain on track with
our previous fleet growth expectations for the full year, with nearly
40% of new business coming from customers new to outsourcing. Our
dedicated transportation business is also benefiting from favorable
outsourcing trends, with more than 50% of its growth coming from
customers new to outsourcing. Overall, in spite of challenging external
conditions, the effectiveness of our improved processes and the focused
efforts of our team have enabled us to deliver solid results and advance
our long-term plans."
Third Quarter Business Segment Operating Results
Fleet Management Solutions
In the Fleet Management Solutions (FMS) business segment, total revenue
was $1.16 billion, consistent with the year-earlier period. FMS
operating revenue (a non-GAAP measure excluding fuel) was $998 million,
up 1% compared with the year-earlier period. Full service lease revenue
increased 7% due to fleet growth and higher prices on replacement
vehicles. The lease fleet (excluding U.K. trailers) increased by 5,200
vehicles year-to-date, partly due to a higher number of vehicles being
prepared for sale. Adjusting for these units, the lease fleet grew by
approximately 3,700 units over the same period, reflecting continued
solid sales activity. Commercial
rental revenue decreased by 14% from the year-earlier period due to
lower demand.
FMS earnings before tax were $112.3 million, down 11% compared with
$126.4 million in the same period of 2015. Decreased earnings reflect
lower used vehicle and commercial rental results, partially offset by
higher full service lease performance and reduced overhead spending. Used
vehicle results declined due to lower pricing on tractors as well as
lower sales volume on trucks and tractors. Commercial rental performance
declined due to lower demand. Rental power fleet utilization was 76.7%
for the third quarter, up from 76.4% in the year-earlier period, due to
right-sizing actions which resulted in a 13% smaller average fleet.
Rental pricing was consistent with the prior year. Full service lease
results benefited from fleet growth. Full service lease and commercial
rental results also benefited from lower depreciation associated with
increased residual values. FMS earnings before tax as a percentage of
FMS total revenue and FMS operating revenue (a non-GAAP measure) were
9.7% and 11.3%, respectively, down 120 and 150 basis points from the
same quarter a year ago, primarily reflecting lower used vehicle sales
results.
Dedicated Transportation Solutions
In the Dedicated Transportation Solutions (DTS) business segment, total
revenue was up 15% to $261 million and DTS operating revenue (a non-GAAP
measure excluding fuel and subcontracted transportation) was up 7% to
$197 million compared with the year-earlier period. DTS total revenue
and DTS operating revenue grew as a result of increased volumes, as well
as new business and higher pricing.
DTS earnings before tax of $17.6 million increased 32% compared with
$13.3 million in 2015, primarily due to revenue growth. DTS earnings
before tax as a percentage of DTS total revenue and DTS operating
revenue (a non-GAAP measure) were 6.7% and 8.9%, respectively, up 80 and
170 basis points from the year-earlier period.
Supply Chain Solutions
In the Supply Chain Solutions (SCS) business segment, total revenue was
up 8% to $417 million and SCS operating revenue (a non-GAAP measure
excluding fuel and subcontracted transportation) was up 8% to $345
million compared with the year-earlier period. SCS total revenue and SCS
operating revenue grew primarily as a result of new business and
increased volumes.
SCS earnings before tax of $31.0 million increased 16% from $26.6
million in 2015, primarily driven by revenue growth. SCS earnings before
tax as a percentage of SCS total revenue and SCS operating revenue (a
non-GAAP measure) were 7.4% and 9.0%, respectively, up 50 and 70 basis
points from the prior year.
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 2016, unallocated CSS
costs were $9 million, down from $10 million in the year-earlier period.
Items Excluded from Segment and Comparable Earnings
Non-operating components of pension costs are excluded from both segment
earnings before tax and comparable earnings (a non-GAAP measure) in
order to more accurately reflect the operating performance of the
business. Non-operating pension costs totaled $7.2 million ($4.2 million
after tax) or $0.08 per diluted share in the third quarter of 2016, up
from $4.8 million ($2.7 million after tax) or $0.05 per diluted share in
the year-earlier period. This increase was largely due to lower asset
returns. Third quarter 2015 results included net recoveries primarily
associated with adjustments to multi-employer pension settlements of
$0.01 per diluted share.
Income Taxes
The Company’s effective income tax rate and comparable income tax rate
(a non-GAAP measure) from continuing operations for the third quarter of
2016 were 35.4% and 35.7%, respectively, consistent with the
year-earlier period.
Capital Expenditures
Year-to-date capital expenditures decreased to $1.40 billion, compared
with $2.11 billion in 2015. The decrease in capital expenditures
reflects lower planned investments in the commercial rental and lease
fleets. Proceeds, primarily from used vehicle sales, of $338 million
increased 5% compared with $321 million in 2015, due to increased
volumes, partially offset by lower vehicle pricing. Net capital
expenditures (including proceeds from the sale of assets) were $1.07
billion in 2016, down from $1.78 billion in 2015.
Cash Flow
Year-to-date operating cash flow was $1.18 billion, up 11% from $1.07
billion in 2015. Total cash generated (a non-GAAP measure that includes
proceeds from used vehicle sales) was $1.58 billion, compared with $1.44
billion in 2015. Free cash flow (a non-GAAP measure) was $72 million,
compared with negative $644 million in 2015, reflecting lower net
capital spending. The Company’s full-year 2016 forecast for operating
cash flow remains unchanged at $1.6 billion. The Company's full-year
free cash flow forecast remains unchanged at $200 million.
Leverage
Debt increased by $17 million compared with year-end 2015. Debt to
equity was 263% compared with 277% at year-end 2015, and within Ryder’s
long-term target range of 225% to 275%. Year-end debt to equity is now
expected to be 265%, compared with the Company's prior forecast of 255%,
reflecting the anticipated pension impact of lower interest rates.
2016 Earnings Forecast
Commenting on the Company’s outlook, Mr. Sanchez said, "We expect the
market environment to continue to be challenging for commercial rental
and used vehicle sales. The fleet right-sizing work that we did earlier
this year has positioned our rental fleet to meet anticipated demand and
target utilization levels. Given the shortfall in used vehicle sales
volume in the third quarter, we are expanding the range of our fourth
quarter estimates to account for some additional wholesaling activity,
which may be necessary to maintain inventories near our target range.
"We expect continued revenue growth across all of our contractual
product lines, reflecting secular trends favoring outsourcing. However,
growth is anticipated to be slower, due in part to the timing of new
sales. We expect improved earnings across our contractual businesses,
generally in line with our prior expectations."
Ryder is revising its full-year 2016 GAAP EPS forecast to a range of
$5.29 to $5.44 from a prior forecast of $5.49 to $5.64. Additionally,
the Company's full-year 2016 comparable EPS forecast has been revised to
a range of $5.70 to $5.85 from a prior range of $5.90 to $6.05. The
Company is also establishing a fourth quarter 2016 GAAP EPS forecast
range of $1.27 to $1.42, and a comparable EPS forecast range of $1.35 to
$1.50, reflecting unfavorable year-over-year comparisons in both
commercial rental and used vehicle sales, partially offset by continuing
growth in Ryder's contractual product lines.
|
|
|
|
|
|
|
|
|
Supplemental Company Information
|
|
|
|
Third Quarter Net Earnings
|
|
|
|
|
|
|
|
|
|
(dollars in millions, except EPS)
|
|
|
Earnings
|
|
|
Diluted EPS
|
|
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
Earnings from continuing operations
|
|
|
$
|
85.1
|
|
|
90.8
|
|
|
|
$
|
1.59
|
|
|
1.70
|
|
Discontinued operations
|
|
|
(0.4
|
)
|
|
(0.2
|
)
|
|
|
(0.01
|
)
|
|
—
|
|
Net earnings
|
|
|
$
|
84.8
|
|
|
90.6
|
|
|
|
$
|
1.59
|
|
|
1.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date Operating Results
|
|
|
|
|
|
|
(in millions)
|
|
|
Nine months ended September 30
|
|
|
|
|
2016
|
|
2015
|
|
Change
|
|
Total revenue
|
|
|
$
|
5,058
|
|
|
4,899
|
|
|
3
|
%
|
|
Operating revenue (non-GAAP)
|
|
|
$
|
4,324
|
|
|
4,119
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
$
|
215.4
|
|
|
230.1
|
|
|
(6
|
)%
|
|
Comparable earnings from continuing operations (non-GAAP)
|
|
|
$
|
232.8
|
|
|
238.5
|
|
|
(2
|
)%
|
|
Net earnings
|
|
|
$
|
214.3
|
|
|
228.6
|
|
|
(6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (EPS) - Diluted
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
4.02
|
|
|
4.31
|
|
|
(7
|
)%
|
|
Comparable (non-GAAP)
|
|
|
$
|
4.35
|
|
|
4.47
|
|
|
(3
|
)%
|
|
Net earnings
|
|
|
$
|
4.00
|
|
|
4.28
|
|
|
(7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 conditions, earnings performance, revenue in our business
segments, fleet size, growth in our contractual product lines, demand
and pricing trends in commercial rental and used vehicle sales, free
cash flow, capital expenditures, debt, adjusted ROC, and our 2017
outlook. 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
right-size our commercial rental fleet in line with demand, availability
of labor to maintain our fleet at normalized levels, ability to redeploy
and prepare for sale in a cost-efficient manner, worsening of market
demand for used vehicles impacting current pricing, residual values 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, 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, uncertainty and
instability in the global economic market, 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:
Comparable Earnings Measures, including comparable earnings
from continuing operations, comparable earnings per share from
continuing operations (as well as forecasts), comparable earnings before
income tax and comparable tax rate. Additionally, our adjusted
return on average capital (ROC) and adjusted return on capital spread
(ROC spread) measures are calculated based on comparable earnings items.
Operating Revenue Measures, including operating revenue and
operating revenue growth excluding foreign exchange for Ryder and its
business segments, and segment EBT as a percentage of operating revenue.
Cash Flow Measures, including total cash generated and free
cash flow.
Refer to Appendix - Non-GAAP Financial Measure Reconciliations at the
end of the tables following this press release for reconciliations of
the non-GAAP financial measures contained in this release to the nearest
GAAP measure. Additional information regarding non-GAAP financial
measures as required by Regulation G and Item 10(e) of Regulation S-K
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 release with the SEC, which are available
at http://investors.ryder.com.
Conference Call and Webcast Information:
Ryder’s earnings conference call and webcast is scheduled for Tuesday,
October 25, 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: PWXW9023133
-
and Passcode: RYDER.
-
To access audio replays of the conference and
view a presentation of Ryder’s earnings results: Dial 1-866-379-4229
(outside U.S. dial 1-203-369-0334), 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.The
replay of the conference call and podcast will be available for at
least 180 days following the conference call.
|
|
|
|
|
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS - UNAUDITED
Periods ended September 30, 2016 and 2015
(In millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Nine Months
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Lease and rental revenues
|
|
$
|
803.0
|
|
|
802.9
|
|
|
$
|
2,369.1
|
|
|
2,311.0
|
|
|
Services revenue
|
|
801.0
|
|
|
734.8
|
|
|
2,345.9
|
|
|
2,165.7
|
|
|
Fuel services revenue
|
|
120.4
|
|
|
131.4
|
|
|
342.8
|
|
|
422.5
|
|
|
Total revenues
|
|
1,724.4
|
|
|
1,669.1
|
|
|
5,057.8
|
|
|
4,899.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of lease and rental
|
|
557.9
|
|
|
550.5
|
|
|
1,665.7
|
|
|
1,600.3
|
|
|
Cost of services
|
|
658.8
|
|
|
606.4
|
|
|
1,936.6
|
|
|
1,792.2
|
|
|
Cost of fuel services
|
|
116.9
|
|
|
129.6
|
|
|
331.3
|
|
|
408.0
|
|
|
Other operating expenses*
|
|
28.0
|
|
|
27.0
|
|
|
85.9
|
|
|
88.9
|
|
|
Selling, general and administrative expenses
|
|
198.8
|
|
|
203.1
|
|
|
632.5
|
|
|
624.6
|
|
|
Gains on used vehicles, net*
|
|
(1.9
|
)
|
|
(25.0
|
)
|
|
(33.0
|
)
|
|
(82.2
|
)
|
|
Interest expense
|
|
37.4
|
|
|
39.0
|
|
|
112.6
|
|
|
114.9
|
|
|
Miscellaneous income, net
|
|
(3.2
|
)
|
|
(1.4
|
)
|
|
(11.0
|
)
|
|
(5.0
|
)
|
|
|
|
1,592.7
|
|
|
1,529.2
|
|
|
4,720.6
|
|
|
4,541.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
131.7
|
|
|
139.9
|
|
|
337.2
|
|
|
357.5
|
|
|
Provision for income taxes
|
|
46.6
|
|
|
49.1
|
|
|
121.8
|
|
|
127.5
|
|
|
Earnings from continuing operations
|
|
85.1
|
|
|
90.8
|
|
|
215.4
|
|
|
230.1
|
|
|
Loss from discontinued operations, net of tax
|
|
(0.4
|
)
|
|
(0.2
|
)
|
|
(1.1
|
)
|
|
(1.5
|
)
|
|
Net earnings
|
|
$
|
84.8
|
|
|
90.6
|
|
|
$
|
214.3
|
|
|
228.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share - Diluted
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
1.59
|
|
|
1.70
|
|
|
$
|
4.02
|
|
|
4.31
|
|
|
Discontinued operations
|
|
(0.01
|
)
|
|
—
|
|
|
(0.02
|
)
|
|
(0.03
|
)
|
|
Net earnings
|
|
$
|
1.59
|
|
|
1.69
|
|
|
$
|
4.00
|
|
|
4.28
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share information - Diluted
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
$
|
85.1
|
|
|
90.8
|
|
|
$
|
215.4
|
|
|
230.1
|
|
|
Less: Distributed and undistributed earnings allocated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to unvested stock
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.7
|
)
|
|
(0.6
|
)
|
|
Earnings from continuing operations available to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders
|
|
$
|
84.9
|
|
|
90.5
|
|
|
$
|
214.7
|
|
|
229.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding - Diluted
|
|
53.3
|
|
|
53.3
|
|
|
53.3
|
|
|
53.2
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS from continuing operations
|
|
$
|
1.59
|
|
|
1.70
|
|
|
$
|
4.02
|
|
|
4.31
|
|
|
Non-operating pension costs
|
|
0.08
|
|
|
0.05
|
|
|
0.24
|
|
|
0.15
|
|
|
Pension-related adjustments
|
|
—
|
|
|
(0.01
|
)
|
|
0.09
|
|
|
(0.01
|
)
|
|
Professional fees
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.04
|
|
|
Tax law change
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.03
|
)
|
|
Comparable EPS from continuing operations **
|
|
$
|
1.67
|
|
|
1.74
|
|
|
$
|
4.35
|
|
|
4.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Losses from fair value adjustments on our used vehicles were
reclassified from "Other operating
|
|
expenses" to "Gains on used vehicles, net" for the periods presented.
|
|
** Non-GAAP financial measure. A reconciliation of GAAP EPS from
continuing operations to comparable
|
|
EPS from continuing operations is set forth in this table.
|
|
|
|
Note: Amounts may not be additive due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS - UNAUDITED
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
December 31,
2015
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
75.0
|
|
|
60.9
|
|
Other current assets
|
|
1,062.6
|
|
|
1,037.4
|
|
Revenue earning equipment, net
|
|
8,274.8
|
|
|
8,184.7
|
|
Operating property and equipment, net
|
|
740.4
|
|
|
715.0
|
|
Other assets
|
|
956.0
|
|
|
954.6
|
|
|
|
$
|
11,108.8
|
|
|
10,952.6
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity:
|
|
|
|
|
|
Current liabilities
|
|
$
|
974.7
|
|
|
1,045.7
|
|
Total debt
|
|
5,519.6
|
|
|
5,502.6
|
|
Other non-current liabilities (including deferred income taxes)
|
|
2,517.4
|
|
|
2,417.1
|
|
Shareholders' equity
|
|
2,097.0
|
|
|
1,987.1
|
|
|
|
$
|
11,108.8
|
|
|
10,952.6
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED KEY RATIOS AND METRICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2016
|
|
December 31,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt to equity
|
|
|
|
|
|
|
263%
|
|
277%
|
|
Effective interest rate (average cost of debt)
|
|
|
|
|
|
|
2.7%
|
|
2.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30,
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
Cash provided by operating activities from continuing operations
|
|
$
|
1,184.7
|
|
|
1,071.3
|
|
|
Free cash flow *
|
|
72.0
|
|
|
(643.8
|
)
|
|
Capital expenditures paid
|
|
1,511.4
|
|
|
2,087.3
|
|
|
|
|
|
|
|
|
Capital expenditures (accrual basis)
|
|
$
|
1,404.2
|
|
|
2,105.6
|
|
|
Less: Proceeds from sales (primarily revenue earning equipment)
|
|
(338.3
|
)
|
|
(321.0
|
)
|
|
Net capital expenditures
|
|
$
|
1,065.8
|
|
|
1,784.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended September 30,
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average shareholders' equity
|
|
|
|
|
|
|
14.3%
|
|
12.8%
|
|
Return on average assets
|
|
|
|
|
|
|
2.6%
|
|
2.3%
|
|
Adjusted return on capital *
|
|
|
|
|
|
|
5.3%
|
|
5.9%
|
|
Weighted average cost of capital
|
|
|
|
|
|
|
4.3%
|
|
4.5%
|
|
Adjusted return on capital spread **
|
|
|
|
|
|
|
1.0%
|
|
1.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
* Non-GAAP financial measure. See reconciliation of the non-GAAP
elements of this calculation
|
|
reconciled to the corresponding GAAP measures included in the
Appendix - Non-GAAP Financial
|
|
Measures section at the end of this release.
|
|
** Non-GAAP financial measure. Adjusted 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, 2016 and 2015
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Nine Months
|
|
|
|
2016
|
|
2015
|
|
B(W)
|
|
2016
|
|
2015
|
|
B(W)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet Management Solutions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full service lease
|
|
$
|
649.2
|
|
|
609.3
|
|
|
7
|
%
|
|
$
|
1,918.4
|
|
|
1,782.1
|
|
|
8
|
%
|
|
Contract maintenance
|
|
50.2
|
|
|
48.6
|
|
|
3
|
%
|
|
151.5
|
|
|
143.6
|
|
|
6
|
%
|
|
Contractual revenue
|
|
699.4
|
|
|
657.9
|
|
|
6
|
%
|
|
2,069.9
|
|
|
1,925.7
|
|
|
7
|
%
|
|
Commercial rental
|
|
216.6
|
|
|
250.6
|
|
|
(14
|
)%
|
|
636.0
|
|
|
694.7
|
|
|
(8
|
)%
|
|
Contract-related maintenance
|
|
62.9
|
|
|
59.9
|
|
|
5
|
%
|
|
189.9
|
|
|
169.6
|
|
|
12
|
%
|
|
Other
|
|
19.0
|
|
|
20.0
|
|
|
(5
|
)%
|
|
59.7
|
|
|
56.7
|
|
|
5
|
%
|
|
Fuel services revenue
|
|
157.1
|
|
|
169.2
|
|
|
(7
|
)%
|
|
449.0
|
|
|
547.4
|
|
|
(18
|
)%
|
|
Total Fleet Management Solutions
|
|
1,155.0
|
|
|
1,157.6
|
|
|
—
|
%
|
|
3,404.5
|
|
|
3,394.1
|
|
|
—
|
%
|
|
Dedicated Transportation Solutions
|
|
260.9
|
|
|
226.9
|
|
|
15
|
%
|
|
764.0
|
|
|
663.1
|
|
|
15
|
%
|
|
Supply Chain Solutions
|
|
416.9
|
|
|
387.3
|
|
|
8
|
%
|
|
1,207.7
|
|
|
1,155.3
|
|
|
5
|
%
|
|
Eliminations
|
|
(108.4
|
)
|
|
(102.7
|
)
|
|
(6
|
)%
|
|
(318.3
|
)
|
|
(313.3
|
)
|
|
(2
|
)%
|
|
Total revenue
|
|
$
|
1,724.4
|
|
|
1,669.1
|
|
|
3
|
%
|
|
$
|
5,057.8
|
|
|
4,899.2
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenue: *
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet Management Solutions
|
|
$
|
997.9
|
|
|
988.4
|
|
|
1
|
%
|
|
$
|
2,955.5
|
|
|
2,846.7
|
|
|
4
|
%
|
|
Dedicated Transportation Solutions
|
|
196.6
|
|
|
184.2
|
|
|
7
|
%
|
|
581.2
|
|
|
526.9
|
|
|
10
|
%
|
|
Supply Chain Solutions
|
|
345.5
|
|
|
318.8
|
|
|
8
|
%
|
|
999.4
|
|
|
934.3
|
|
|
7
|
%
|
|
Eliminations
|
|
(71.7
|
)
|
|
(65.0
|
)
|
|
(10
|
)%
|
|
(212.1
|
)
|
|
(188.4
|
)
|
|
(13
|
)%
|
|
Operating revenue
|
|
$
|
1,468.3
|
|
|
1,426.5
|
|
|
3
|
%
|
|
$
|
4,324.0
|
|
|
4,119.4
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business segment earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet Management Solutions
|
|
$
|
112.3
|
|
|
126.4
|
|
|
(11
|
)%
|
|
$
|
306.4
|
|
|
338.6
|
|
|
(10
|
)%
|
|
Dedicated Transportation Solutions
|
|
17.6
|
|
|
13.3
|
|
|
32
|
%
|
|
48.3
|
|
|
34.7
|
|
|
39
|
%
|
|
Supply Chain Solutions
|
|
31.0
|
|
|
26.6
|
|
|
16
|
%
|
|
79.1
|
|
|
70.0
|
|
|
13
|
%
|
|
Eliminations
|
|
(12.6
|
)
|
|
(12.0
|
)
|
|
(5
|
)%
|
|
(37.1
|
)
|
|
(35.1
|
)
|
|
(6
|
)%
|
|
|
|
148.2
|
|
|
154.3
|
|
|
(4
|
)%
|
|
396.7
|
|
|
408.1
|
|
|
(3
|
)%
|
|
Unallocated Central Support Services
|
|
(9.3
|
)
|
|
(10.1
|
)
|
|
8
|
%
|
|
(30.2
|
)
|
|
(32.9
|
)
|
|
8
|
%
|
|
Non-operating pension costs
|
|
(7.2
|
)
|
|
(4.8
|
)
|
|
(51
|
)%
|
|
(21.7
|
)
|
|
(14.4
|
)
|
|
(51
|
)%
|
|
Other items
|
|
—
|
|
|
0.4
|
|
|
NM
|
|
(7.7
|
)
|
|
(3.3
|
)
|
|
NM
|
|
Earnings from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before income taxes
|
|
131.7
|
|
|
139.9
|
|
|
(6
|
)%
|
|
337.2
|
|
|
357.5
|
|
|
(6
|
)%
|
|
Provision for income taxes
|
|
46.6
|
|
|
49.1
|
|
|
5
|
%
|
|
121.8
|
|
|
127.5
|
|
|
4
|
%
|
|
Earnings from continuing operations
|
|
$
|
85.1
|
|
|
90.8
|
|
|
(6
|
)%
|
|
$
|
215.4
|
|
|
230.1
|
|
|
(6
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Non-GAAP financial measure. See reconciliation of GAAP total
revenue to operating revenue in the
|
|
Appendix - Non-GAAP Financial Measures section at the end of this
release.
|
|
|
|
Note: Amounts may not be additive due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION - UNAUDITED
Periods ended September 30, 2016 and 2015
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
Nine Months
|
|
|
|
2016
|
|
2015
|
|
B(W)
|
|
2016
|
|
2015
|
|
B(W)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet Management Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FMS total revenue
|
|
$
|
1,155.0
|
|
|
1,157.6
|
|
|
—
|
%
|
|
$
|
3,404.5
|
|
|
3,394.1
|
|
|
—
|
%
|
|
Fuel services revenue(a)
|
|
(157.1
|
)
|
|
(169.2
|
)
|
|
(7
|
)%
|
|
(449.0
|
)
|
|
(547.4
|
)
|
|
(18
|
)%
|
|
FMS operating revenue *
|
|
$
|
997.9
|
|
|
988.4
|
|
|
1
|
%
|
|
$
|
2,955.5
|
|
|
2,846.7
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment earnings before income taxes
|
|
$
|
112.3
|
|
|
126.4
|
|
|
(11
|
)%
|
|
$
|
306.4
|
|
|
338.6
|
|
|
(10
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FMS earnings before income taxes as % of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FMS total revenue
|
|
9.7
|
%
|
|
10.9
|
%
|
|
|
|
9.0
|
%
|
|
10.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FMS earnings before income taxes as % of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FMS operating revenue *
|
|
11.3
|
%
|
|
12.8
|
%
|
|
|
|
10.4
|
%
|
|
11.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dedicated Transportation Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTS total revenue
|
|
$
|
260.9
|
|
|
226.9
|
|
|
15
|
%
|
|
$
|
764.0
|
|
|
663.1
|
|
|
15
|
%
|
|
Subcontracted transportation
|
|
(37.7
|
)
|
|
(13.7
|
)
|
|
176
|
%
|
|
(106.9
|
)
|
|
(42.8
|
)
|
|
150
|
%
|
|
Fuel(a)
|
|
(26.5
|
)
|
|
(29.0
|
)
|
|
(9
|
)%
|
|
(75.9
|
)
|
|
(93.4
|
)
|
|
(19
|
)%
|
|
DTS operating revenue *
|
|
$
|
196.6
|
|
|
184.2
|
|
|
7
|
%
|
|
$
|
581.2
|
|
|
526.9
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment earnings before income taxes
|
|
$
|
17.6
|
|
|
13.3
|
|
|
32
|
%
|
|
$
|
48.3
|
|
|
34.7
|
|
|
39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTS earnings before income taxes as % of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTS total revenue
|
|
6.7
|
%
|
|
5.9
|
%
|
|
|
|
6.3
|
%
|
|
5.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTS earnings before income taxes as % of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTS operating revenue *
|
|
8.9
|
%
|
|
7.2
|
%
|
|
|
|
8.3
|
%
|
|
6.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply Chain Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCS total revenue
|
|
$
|
416.9
|
|
|
387.3
|
|
|
8
|
%
|
|
$
|
1,207.7
|
|
|
1,155.3
|
|
|
5
|
%
|
|
Subcontracted transportation
|
|
(56.1
|
)
|
|
(54.0
|
)
|
|
4
|
%
|
|
(162.7
|
)
|
|
(172.0
|
)
|
|
(5
|
)%
|
|
Fuel(a)
|
|
(15.4
|
)
|
|
(14.6
|
)
|
|
5
|
%
|
|
(45.5
|
)
|
|
(49.1
|
)
|
|
(7
|
)%
|
|
SCS operating revenue *
|
|
$
|
345.5
|
|
|
318.8
|
|
|
8
|
%
|
|
$
|
999.4
|
|
|
934.3
|
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment earnings before income taxes
|
|
$
|
31.0
|
|
|
26.6
|
|
|
16
|
%
|
|
$
|
79.1
|
|
|
70.0
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCS earnings before income taxes as % of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCS total revenue
|
|
7.4
|
%
|
|
6.9
|
%
|
|
|
|
6.6
|
%
|
|
6.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCS earnings before income taxes as % of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCS operating revenue *
|
|
9.0
|
%
|
|
8.3
|
%
|
|
|
|
7.9
|
%
|
|
7.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Non-GAAP financial measure. A reconciliation of (1) GAAP total
revenue to operating revenue for
|
|
each business segment (FMS, DTS and SCS) and (2) segment earnings
before taxes (EBT) as % of
|
|
segment total revenue to segment EBT as % of segment operating
revenue for each business segment
|
|
is set forth in this table.
|
|
|
|
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 2016/2015
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Three
Months
|
|
Nine
Months
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full service lease
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fleet count
|
|
135,100
|
|
|
129,900
|
|
|
133,800
|
|
|
128,000
|
|
|
4%
|
|
5%
|
|
End of period fleet count
|
|
136,600
|
|
|
130,600
|
|
|
136,600
|
|
|
130,600
|
|
|
5%
|
|
5%
|
|
Miles/unit per day change - % (a)
|
|
1.7
|
%
|
|
(1.2
|
)%
|
|
1.6
|
%
|
|
(0.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial rental
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fleet count
|
|
38,300
|
|
|
43,800
|
|
|
39,600
|
|
|
42,100
|
|
|
(13)%
|
|
(6)%
|
|
End of period fleet count
|
|
38,000
|
|
|
43,800
|
|
|
38,000
|
|
|
43,800
|
|
|
(13)%
|
|
(13)%
|
|
Rental utilization - power units
|
|
76.7
|
%
|
|
76.4
|
%
|
|
73.9
|
%
|
|
76.0
|
%
|
|
30 bps
|
|
(210) bps
|
|
Rental rate change - % (b)
|
|
(0.2
|
)%
|
|
2.4
|
%
|
|
(0.3
|
)%
|
|
3.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer vehicles under
|
|
|
|
|
|
|
|
|
|
|
|
|
contract maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fleet count
|
|
49,600
|
|
|
41,400
|
|
|
49,000
|
|
|
42,600
|
|
|
20%
|
|
15%
|
|
End of period fleet count
|
|
49,300
|
|
|
41,500
|
|
|
49,300
|
|
|
41,500
|
|
|
19%
|
|
19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer vehicles under
|
|
|
|
|
|
|
|
|
|
|
|
|
on-demand maintenance (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet serviced during the period
|
|
8,000
|
|
|
8,200
|
|
|
22,700
|
|
|
16,900
|
|
|
(2)%
|
|
34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fleet count (d)
|
|
8,300
|
|
|
7,900
|
|
|
8,200
|
|
|
7,700
|
|
|
5%
|
|
6%
|
|
End of period fleet count(d)
|
|
8,200
|
|
|
7,900
|
|
|
8,200
|
|
|
7,900
|
|
|
4%
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fleet count (d)
|
|
7,400
|
|
|
6,500
|
|
|
7,100
|
|
|
6,300
|
|
|
14%
|
|
13%
|
|
End of period fleet count(d)
|
|
7,300
|
|
|
6,600
|
|
|
7,300
|
|
|
6,600
|
|
|
11%
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Used vehicle sales (UVS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average UVS inventory
|
|
8,700
|
|
|
5,900
|
|
|
8,600
|
|
|
5,800
|
|
|
47%
|
|
48%
|
|
End of period fleet count
|
|
7,500
|
|
|
6,100
|
|
|
7,500
|
|
|
6,100
|
|
|
23%
|
|
23%
|
|
Used vehicles sold
|
|
4,000
|
|
|
4,400
|
|
|
13,800
|
|
|
13,400
|
|
|
(9)%
|
|
3%
|
|
UVS pricing change - % (e)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tractors
|
|
(13
|
)%
|
|
5
|
%
|
|
(12
|
)%
|
|
10
|
%
|
|
|
|
|
|
Trucks
|
|
2
|
%
|
|
8
|
%
|
|
1
|
%
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
commercial rental and contract maintenance.
|
|
(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
|
|
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED
|
|
|
|
This press release and accompanying tables include “non-GAAP
financial measures” as defined by SEC
|
|
rules. As required by SEC rules, we provide a reconciliation of
each non-GAAP financial measure to
|
|
the most comparable GAAP measure. Non-GAAP financial measures
should be considered in addition to,
|
|
but not as a substitute for or superior to, other measures of
financial performance prepared in
|
|
accordance with GAAP.
|
|
|
|
Specifically, the following non-GAAP financial measures are
included in this presentation:
|
|
|
|
|
|
|
|
Non-GAAP Financial Measure
|
|
Comparable GAAP Measure
|
|
Reconciliation in Section Entitled
|
|
Operating Revenue Measures:
|
|
|
|
|
|
Operating Revenue
|
|
Total Revenue
|
|
Appendix - Non-GAAP Financial Measure Reconciliations
|
|
FMS Operating Revenue
|
|
FMS Total Revenue
|
|
Business Segment Information - Unaudited
|
|
DTS Operating Revenue
|
|
DTS Total Revenue
|
|
|
SCS Operating Revenue
|
|
SCS Total Revenue
|
|
|
Operating Revenue Growth Excluding Foreign Exchange
|
|
Total Revenue
|
|
Appendix - Non-GAAP Financial Measure Reconciliations
|
|
FMS EBT as a % of FMS Operating Revenue
|
|
FMS EBT as a % of FMS Total Revenue
|
|
Business Segment Information - Unaudited
|
|
DTS EBT as a % of DTS Operating Revenue
|
|
DTS EBT as a % of DTS Total Revenue
|
|
|
SCS EBT as a % of SCS Operating Revenue
|
|
SCS EBT as a % of SCS Total Revenue
|
|
|
Comparable Earnings Measures:
|
|
|
|
|
|
Comparable Earnings Before Income
|
|
Earnings Before Income Tax and Tax
|
|
Appendix - Non-GAAP Financial Measure
|
|
Tax and Comparable Tax Rate
|
|
Rate
|
|
Reconciliations
|
|
Comparable Earnings
|
|
Earnings from Continuing Operations
|
|
Appendix - Non-GAAP Financial Measure Reconciliations
|
|
Comparable EPS and Comparable EPS Forecast
|
|
EPS from Continuing Operations
EPS Forecast from Continuing Operations
|
|
Consolidated Condensed Statements of Earnings - Unaudited
Appendix - Non-GAAP Financial Measure Reconciliations (Forecast)
|
|
Adjusted Return on Average
|
|
Not Applicable. However, non-GAAP
|
|
Appendix - Non-GAAP Financial Measure
|
|
Capital (ROC) and Adjusted ROC
|
|
elements of the calculation have
|
|
Reconciliations
|
|
Spread
|
|
been reconciled to the
|
|
|
|
|
|
corresponding GAAP measures. A
|
|
|
|
|
|
numerical reconciliation of net
|
|
|
|
|
|
earnings to adjusted net earnings
|
|
|
|
|
|
and average total debt and average
|
|
|
|
|
|
shareholders' equity to adjusted
|
|
|
|
|
|
average total capital is provided.
|
|
|
|
Cash Flow Measures:
|
|
|
|
|
|
Total Cash Generated and Free Cash Flow
|
|
Cash Provided by Operating Activities
|
|
Appendix - Non-GAAP Financial Measure Reconciliations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS -
UNAUDITED
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING REVENUE RECONCILIATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
|
|
$
|
1,724.4
|
|
|
1,669.1
|
|
|
$
|
5,057.8
|
|
|
4,899.2
|
|
|
Fuel
|
|
|
|
|
(162.3
|
)
|
|
(175.0
|
)
|
|
(464.2
|
)
|
|
(565.0
|
)
|
|
Subcontracted transportation
|
|
|
|
|
(93.8
|
)
|
|
(67.6
|
)
|
|
(269.6
|
)
|
|
(214.8
|
)
|
|
Operating revenue *
|
|
|
|
|
$
|
1,468.3
|
|
|
1,426.5
|
|
|
$
|
4,324.0
|
|
|
4,119.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING REVENUE GROWTH EXCLUDING
FOREIGN EXCHANGE RECONCILIATION
|
|
|
|
|
|
|
|
|
|
Third Quarter
|
|
Year-to-Date
|
|
|
|
2016 vs
2015 Growth
|
|
Fx Impact(a)
|
|
Growth excl
Fx*
|
|
2016 vs
2015 Growth
|
|
Fx Impact(a)
|
|
Growth excl
Fx*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RSI Total Revenue
|
|
3
|
%
|
|
(1
|
)%
|
|
4
|
%
|
|
3
|
%
|
|
(1
|
)%
|
|
4
|
%
|
|
RSI Operating Revenue*
|
|
3
|
%
|
|
(1
|
)%
|
|
4
|
%
|
|
5
|
%
|
|
(1
|
)%
|
|
6
|
%
|
|
FMS Total Revenue
|
|
—
|
%
|
|
(1
|
)%
|
|
1
|
%
|
|
—
|
%
|
|
(1
|
)%
|
|
1
|
%
|
|
FMS Operating Revenue*
|
|
1
|
%
|
|
(1
|
)%
|
|
2
|
%
|
|
4
|
%
|
|
(1
|
)%
|
|
5
|
%
|
|
SCS Total Revenue
|
|
8
|
%
|
|
(1
|
)%
|
|
9
|
%
|
|
5
|
%
|
|
(2
|
)%
|
|
7
|
%
|
|
SCS Operating Revenue*
|
|
8
|
%
|
|
(1
|
)%
|
|
9
|
%
|
|
7
|
%
|
|
(2
|
)%
|
|
9
|
%
|
|
Full Service Lease Revenue
|
|
7
|
%
|
|
(1
|
)%
|
|
8
|
%
|
|
8
|
%
|
|
(1
|
)%
|
|
9
|
%
|
|
Commercial Rental Revenue
|
|
(14
|
)%
|
|
(1
|
)%
|
|
(13
|
)%
|
|
(8
|
)%
|
|
(1
|
)%
|
|
(7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CASH GENERATED/FREE CASH FLOW
RECONCILIATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30,
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
Net cash provided by operating activities from continuing operations
|
|
$
|
1,184.7
|
|
|
1,071.3
|
|
|
Proceeds from sales (primarily revenue earning equipment) (b)
|
|
338.3
|
|
|
321.0
|
|
|
Collections on direct finance leases and other items (b)
|
|
60.2
|
|
|
51.2
|
|
|
Total cash generated *
|
|
1,583.3
|
|
|
1,443.5
|
|
|
Purchases of property and revenue earning equipment (b)
|
|
(1,511.4
|
)
|
|
(2,087.3
|
)
|
|
Free cash flow **
|
|
$
|
72.0
|
|
|
(643.8
|
)
|
|
|
|
|
|
|
|
Memo:
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
$
|
(55.2
|
)
|
|
664.8
|
|
|
Net cash used in investing activities
|
|
$
|
(1,108.6
|
)
|
|
(1,707.4
|
)
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
(a)
|
|
FX impact was calculated by dividing the results for the current and
prior year periods by the
|
|
|
|
exchange rates in effect on September 30, 2015, which was the last
day of the prior year
|
|
|
|
period, rather than the actual exchange rates in effect as of
September 30, 2016.
|
|
(b)
|
|
Included in cash flows from investing activities.
|
|
*Non-GAAP financial measure.
|
|
** Non-GAAP financial measure. We refer to the net amount of cash
generated from operating activities and investing activities
(excluding
|
|
changes in restricted cash and acquisitions) from continuing
operations as “free cash flow”. We calculate free cash flow as the
sum of net
|
|
cash provided by operating activities and net cash provided by the
sale of revenue earning equipment and operating property and
equipment,
|
|
collections on direct finance leases and other cash inflows from
investing activities, less purchases of property and revenue earning
|
|
equipment.
|
|
|
|
Note: Amounts may not be additive due to rounding.
|
|
|
|
|
|
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS -
UNAUDITED
(Dollars in millions)
|
|
|
|
|
|
|
|
ADJUSTED RETURN ON CAPITAL RECONCILIATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended September 30,
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
Net earnings (12-month rolling period)
|
|
$
|
291.2
|
|
|
239.6
|
|
|
+ Restructuring and other items
|
|
21.9
|
|
|
116.3
|
|
|
+ Income taxes
|
|
158.0
|
|
|
129.7
|
|
|
Adjusted earnings before income taxes
|
|
471.1
|
|
|
485.6
|
|
|
+ Adjusted interest expense (a)
|
|
148.4
|
|
|
152.0
|
|
|
- Adjusted income taxes (b)
|
|
(217.4
|
)
|
|
(228.8
|
)
|
|
= Adjusted net earnings for ROC (numerator) [A]
|
|
$
|
402.1
|
|
|
408.8
|
|
|
|
|
|
|
|
|
Average total debt
|
|
$
|
5,559.1
|
|
|
4,988.8
|
|
|
Average off-balance sheet debt
|
|
1.6
|
|
|
1.5
|
|
|
Average shareholders' equity
|
|
2,026.1
|
|
|
1,877.7
|
|
|
Adjustment to equity (c)
|
|
2.6
|
|
|
18.3
|
|
|
Adjusted average total capital (denominator) [B]
|
|
$
|
7,589.4
|
|
|
6,886.3
|
|
|
|
|
|
|
|
|
Adjusted ROC * [A]/[B]
|
|
5.3
|
%
|
|
5.9
|
%
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
(a)
|
|
Represents reported interest expense plus imputed interest on
off-balance sheet obligations.
|
|
(b)
|
|
Represents provision for income taxes plus income taxes on
restructuring and other items and
|
|
|
|
adjusted interest expense.
|
|
(c)
|
|
Represents the impact to equity of items to arrive at comparable
earnings.
|
|
* Non-GAAP financial measure. Non-GAAP elements of the calculation
have been reconciled to the
|
|
corresponding GAAP measures. A numerical reconciliation of net
earnings to adjusted net earnings
|
|
and average total debt and average shareholders' equity to adjusted
average total capital set
|
|
forth in this table.
|
|
|
|
Note: Amounts may not be additive due to rounding.
|
|
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS -
UNAUDITED
(In millions, except per share amounts)
|
|
|
|
COMPARABLE EARNINGS/EARNINGS BEFORE
INCOME TAX/TAX RATE RECONCILIATION
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
Consolidated Statements
of Earnings Line Item
|
|
Three Months
|
|
Nine Months
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
|
|
$
|
131.7
|
|
|
337.2
|
|
|
Non-operating pension costs
|
|
SG&A
|
|
7.2
|
|
|
21.7
|
|
|
Pension-related adjustments
|
|
SG&A
|
|
—
|
|
|
7.7
|
|
|
Comparable earnings from continuing operations before
|
|
|
|
|
|
|
|
|
|
income taxes*
|
|
|
|
138.9
|
|
|
366.5
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
(46.6
|
)
|
|
(121.8
|
)
|
|
Income tax effects of non-GAAP adjustments**
|
|
|
|
(3.0
|
)
|
|
(11.9
|
)
|
|
Comparable provision for income taxes**
|
|
|
|
(49.6
|
)
|
|
(133.7
|
)
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
|
85.1
|
|
|
215.4
|
|
|
Non-operating pension costs
|
|
SG&A
|
|
4.2
|
|
|
12.7
|
|
|
Pension-related adjustments
|
|
SG&A
|
|
—
|
|
|
4.8
|
|
|
Comparable earnings from continuing operations*
|
|
|
|
$
|
89.4
|
|
|
232.8
|
|
|
|
|
|
|
|
|
|
|
Tax rate on continuing operations
|
|
|
|
35.4
|
%
|
|
36.1
|
%
|
|
Income tax effects of non-GAAP adjustments**
|
|
|
|
0.3
|
%
|
|
0.4
|
%
|
|
Comparable tax rate on continuing operations**
|
|
|
|
35.7
|
%
|
|
36.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
Consolidated Statements
of Earnings Line Item
|
|
Three Months
|
|
Nine Months
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations before income taxes
|
|
|
|
$
|
139.9
|
|
|
357.5
|
|
|
Non-operating pension costs
|
|
SG&A
|
|
4.8
|
|
|
14.4
|
|
|
Pension-related adjustments
|
|
SG&A
|
|
(0.5
|
)
|
|
(0.5
|
)
|
|
Professional fees
|
|
SG&A
|
|
0.1
|
|
|
3.8
|
|
|
Comparable earnings from continuing operations before
|
|
|
|
|
|
|
|
|
|
income taxes*
|
|
|
|
144.2
|
|
|
375.2
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
|
(49.1
|
)
|
|
(127.5
|
)
|
|
Income tax effects of non-GAAP adjustments**
|
|
|
|
(1.9
|
)
|
|
(7.4
|
)
|
|
|
|
Provision for income
|
|
|
|
|
|
|
|
Tax law change
|
|
taxes
|
|
—
|
|
|
(1.9
|
)
|
|
Comparable provision for income taxes**
|
|
|
|
(51.0
|
)
|
|
(136.7
|
)
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
|
|
|
90.8
|
|
|
230.1
|
|
|
Non-operating pension costs
|
|
SG&A
|
|
2.7
|
|
|
8.2
|
|
|
Pension-related adjustments
|
|
SG&A
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
Professional fees
|
|
SG&A
|
|
—
|
|
|
2.4
|
|
|
|
|
Provision for income
|
|
|
|
|
|
|
|
Tax law change
|
|
taxes
|
|
—
|
|
|
(1.9
|
)
|
|
Comparable earnings from continuing operations*
|
|
|
|
$
|
93.3
|
|
|
238.5
|
|
|
|
|
|
|
|
|
|
|
Tax rate on continuing operations
|
|
|
|
35.1
|
%
|
|
35.7
|
%
|
|
Income tax effects of non-GAAP adjustments**
|
|
|
|
0.2
|
%
|
|
0.7
|
%
|
|
Comparable tax rate on continuing operations**
|
|
|
|
35.3
|
%
|
|
36.4
|
%
|
|
* Non-GAAP financial measure.
|
|
** The comparable provision for income taxes is computed using the
same methodology as the GAAP provision
|
|
for income taxes. Income tax effects of non-GAAP adjustments are
calculated based on the statutory tax
|
|
rates of the jurisdictions to which the non-GAAP adjustments relate.
|
|
|
|
Note: Amounts may not be additive due to rounding.
|
|
|
|
|
|
|
|
RYDER SYSTEM, INC. AND SUBSIDIARIES
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS -
UNAUDITED
|
|
|
|
|
|
|
|
COMPARABLE EARNINGS PER SHARE FORECAST
RECONCILIATION
|
|
|
|
|
|
|
|
|
|
|
|
Comparable earnings per share from continuing operations forecast:*
|
|
Fourth Quarter
2016
|
|
Full Year
2016
|
|
EPS from continuing operations
|
|
$1.27 to $1.42
|
|
$5.29 to $5.44
|
|
Non-operating pension costs, net of tax
|
|
$0.08
|
|
$0.32
|
|
Pension-related adjustments
|
|
—
|
|
$0.09
|
|
Comparable EPS from continuing operations forecast*
|
|
$1.35 to $1.50
|
|
$5.70 to $5.85
|
|
|
|
|
|
|
|
Note: Amounts may not be additive due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL CASH GENERATED/FREE CASH FLOW FORECAST
RECONCILIATION
|
|
|
|
|
|
|
|
|
|
2016 Forecast
|
|
Net Cash Provided by Operating Activities from Continuing Operations
|
|
$
|
1,613
|
|
|
Proceeds from sales (primarily revenue earning equipment) (1)
|
|
417
|
|
|
Collections of direct finance leases (1)
|
|
77
|
|
|
Other, net (1)
|
|
4
|
|
|
Total cash generated*
|
|
2,111
|
|
|
|
|
|
|
Capital expenditures (1)
|
|
(1,911
|
)
|
|
Free cash flow **
|
|
$
|
200
|
|
|
|
|
|
|
Memo:
|
|
|
|
Net cash used in financing activities
|
|
$
|
179
|
|
|
Net cash used in investing activities
|
|
$
|
1,408
|
|
|
|
|
|
|
|
|
(1) Included in cash flows from investing
activities.
|
|
|
|
|
|
|
|
* Non-GAAP financial measure.
|
|
** Non-GAAP financial measure. We refer to the net amount of cash
generated from operating activities and investing activities
|
|
(excluding changes in restricted cash and acquisitions) from
continuing operations as “free cash flow”. We calculate free cash
|
|
flow as the sum of net cash provided by operating activities and net
cash provided by the sale of revenue earning equipment and
|
|
operating property and equipment, collections on direct finance
leases and other cash inflows from investing activities, less
|
|
purchases of property and revenue earning equipment.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161025005402/en/
Source: Ryder System, Inc.