Attached files
| file | filename |
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| EX-99.1 - EX-99.1 - RYDER SYSTEM INC | d292996dex991.htm |
| 8-K - FORM 8-K - RYDER SYSTEM INC | d292996d8k.htm |
 Fourth Quarter 2011 & 2012 Forecast
Earnings
Conference
Call
February 2, 2012
Exhibit 99.2 |
 02/02/12
Proprietary and Confidential
2
Safe Harbor
Certain statements and information included in this presentation are "forward-looking
statements" under the Federal Private Securities Litigation Reform Act of 1995.
Accordingly, these forward-looking statements should be evaluated with consideration given
to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially
from those in the forward-looking statements. Important factors that could cause such differences
include, among others, a slowdown of the economic recovery and decreases in freight demand, our
ability to obtain adequate profit margins for our services, our inability to maintain current
pricing levels due to soft economic conditions, uncertainty or decline in economic and market
conditions affecting demand for our services, a decline in the market for used vehicles resulting in a decline in residual
values of our lease or rental vehicles, competition from other service providers, customer retention
levels, unexpected volatility or declines in automotive or high-tech volume, loss of key
customers in the Supply Chain Solutions (SCS) business segment, unexpected reserves or
write-offs due to the deterioration of the credit worthiness or bankruptcy of customers, changes in
financial, tax or regulatory requirements or changes in customers’ business environments that
will limit their ability to commit to long-term vehicle leases, a decrease in credit
ratings, increased debt costs resulting from volatile financial markets, inability to achieve
planned synergies and customer retention levels or anticipate costs and liabilities from acquisitions, labor strikes or
work stoppages affecting our or our customers’ business operations, driver and technician
shortages and increasing driver cost adequacy of accounting estimates, reserves and accruals
particularly with respect to pension, taxes, insurance and revenue, a decline in pension plan
returns, changes in obligations relating to multi-employer plans, sudden or unusual changes in fuel
prices, our ability to manage our cost structure, new accounting pronouncements, rules or
interpretations, changes in government regulations, new proposed changes in lease accounting
rules, the inability to comply with government regulations particularly relating to various
state and federal privacy, employment and environmental regulations, new legal proceedings or
unanticipated outcomes in existing legal proceedings 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. |
 Contents
Fourth Quarter 2011 Results Overview
Asset Management Update
2012 Forecast
Q & A
02/02/12
3
Proprietary and Confidential |
 02/02/12
Proprietary and Confidential
4
4th Quarter Results Overview
Earnings
per
diluted
share
from
continuing
operations
were
$0.92
in
4Q11
vs.
$0.80 in 4Q10
–
4Q11 included a $0.05 charge for acquisition-related restructuring costs
–
4Q10 included a $0.15 net benefit related to income taxes, partially offset by
restructuring and other items
Comparable earnings per share from continuing operations were $0.97 vs.
$0.65 in 4Q10
Total revenue increased 17% (and operating revenue increased 16%) vs. prior
year reflecting the impact of acquisitions and organic revenue growth
|
 Proprietary and Confidential
5
Key Financial Statistics
Fourth Quarter
($ Millions, Except Per Share Amounts)
Note: Amounts throughout presentation may not be additive due to
rounding. (1)
Non-GAAP
financial
measure;
refer
to
Appendix
-
Non-GAAP
Financial
Measures.
(2)
Includes discontinued operations and restructuring charges and other items.
02/02/12
2011
2010
% B/(W)
Operating
Revenue
(1)
1,237.0
$
1,061.9
$
16%
Fuel Services and Subcontracted Transportation Revenue
304.0
251.5
21%
Total Revenue
1,541.1
$
1,313.4
$
17%
Earnings Per Share From Continuing Operations
0.92
$
0.80
$
15%
Comparable
Earnings
Per
Share
From
Continuing
Operations
(1)
0.97
$
0.65
$
49%
Earnings
Per
Share
(2)
0.93
$
0.72
$
29%
Memo:
Average
Shares (Millions) -
Diluted
50.7
51.0
Tax
Rate
From
Continuing
Operations
34.8%
16.4%
Comparable
Tax
Rate
From
Continuing
Operations
(1)
34.4%
35.9% |
 02/02/12
Proprietary and Confidential
6
Key Financial Statistics
Full Year
($ Millions, Except Per Share Amounts)
(1)
Non-GAAP
financial
measure;
refer
to
Appendix
-
Non-GAAP
Financial
Measures.
(2)
Includes discontinued operations and restructuring charges and other items.
2011
2010
% B/(W)
Operating Revenue
(1)
4,814.6
$
4,158.2
$
16%
Fuel Services and Subcontracted Transportation Revenue
1,236.0
978.1
26%
Total Revenue
6,050.5
$
5,136.4
$
18%
Earnings Per Share From Continuing Operations
3.31
$
2.37
$
40%
3.49
$
2.22
$
57%
Earnings Per Share
3.28
$
2.25
$
46%
Memo:
50.9
51.9
Tax Rate From Continuing Operations
38.7%
33.1%
36.7%
38.3%
5.7%
4.8%
Comparable
Tax
Rate
From
Continuing
Operations
(1)
Adjusted
Return
on
Capital
(Trailing
12
month)
(1)
Average
Shares
(Millions)
-
Diluted
Comparable
Earnings
Per
Share
From
Continuing
Operations
(1)
(2) |
 02/02/12
Proprietary and Confidential
7
4th Quarter Results Overview -
FMS
Fleet Management Solutions (FMS) total revenue up 13% (and operating revenue
up 12%) vs. prior year
–
Contractual revenue up 4%
–
Full service lease revenue up 5%
–
Contract maintenance revenue decreased 1%
–
Commercial rental revenue up 38%
–
Fuel revenue up 18% due primarily to increase in fuel pass-throughs
FMS earnings before tax (EBT) up 41%
–
FMS EBT percent of operating revenue up 180 basis points to 8.6%
FMS earnings positively impacted by better commercial rental performance,
acquisitions and improved used vehicle sales results
–
These
benefits
were
partially
offset
by
higher
maintenance
costs
on
an
older
fleet,
investments in sales and marketing, and higher compensation-related
expenses |
 02/02/12
Proprietary and Confidential
8
4th
Quarter
Results
Overview
–
SCS
/
DCC
Supply
Chain
Solutions
(SCS)
total
revenue
up
26%
(and
operating
revenue
up
26%) vs. prior year due to the TLC acquisition and new business
SCS earnings before tax (EBT) up 44%
–
SCS EBT percent of operating revenue up 70 basis points to 5.5%
SCS earnings increased due to the TLC acquisition, favorable insurance
development and new business
Dedicated Contract Carriage (DCC) total revenue up 29% (and operating revenue
up 23%) due to the Scully acquisition and higher fuel pass-throughs
DCC earnings before tax (EBT) up 7%
–
DCC EBT percent of operating revenue down 70 basis points to 4.8%
DCC earnings increased due to favorable insurance development, partially offset
by lower operating performance |
 02/02/12
Proprietary and Confidential
9
Business Segments
Fourth Quarter
($ Millions)
(1)
(1)
(2)
2011
2010
% B/(W)
2011
2010
% B/(W)
Operating Revenue:
(1)
Fleet Management Solutions
813.3
$
726.3
$
12%
1,074.7
$
948.1
$
13%
Supply Chain Solutions
324.7
258.3
26%
408.7
325.1
26%
Dedicated Contract Carriage
147.1
119.3
23%
156.6
121.8
29%
Eliminations
(48.1)
(41.9)
(15)%
(98.9)
(81.6)
(21)%
Total
1,237.0
$
1,061.9
$
16%
1,541.1
$
1,313.4
$
17%
Segment Earnings Before Tax:
Fleet Management Solutions
69.9
$
49.5
$
41%
Supply Chain Solutions
17.8
12.3
44%
Dedicated Contract Carriage
7.0
6.5
7%
Eliminations
(7.1)
(4.8)
(49)%
87.6
63.6
38%
Central Support Services (Unallocated Share)
(11.1)
(10.8)
(3)%
76.4
52.8
45%
(3.3)
(3.2)
NM
Earnings Before Income Taxes
73.1
49.6
47%
Provision for Income Taxes
(25.4)
(8.1)
(212)%
Earnings from Continuing Operations
47.7
$
41.5
$
15%
50.1
$
33.8
$
48%
Net Earnings
48.1
$
37.1
$
30%
Memo: Total Revenue
Earnings Before Restructuring and Income Taxes
Restructuring and Other Charges, Net and Other Items
Comparable Earnings from Continuing Operations
(1)
Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures
(2)
Our primary measure of segment financial performance excludes restructuring and other charges, net and
other items. The applicable portion of the restructuring and other items that related to
each segment was as follows: FMS – ($3.3) in 2011, and SCS – ($3.2) in 2010. |
 02/02/12
Proprietary and Confidential
10
Business Segments
Full Year
($ Millions)
2011
2010
% B/(W)
2011
2010
% B/(W)
Operating Revenue:
(1)
Fleet Management Solutions
3,135.9
$
2,846.5
$
10%
4,218.3
$
3,712.2
$
14%
Supply Chain Solutions
1,290.9
1,005.0
28%
1,605.4
1,252.3
28%
Dedicated Contract Carriage
566.6
468.5
21%
600.7
482.6
24%
Eliminations
(178.8)
(161.8)
(11)%
(373.8)
(310.6)
(20)%
Total
4,814.6
$
4,158.2
$
16%
6,050.5
$
5,136.4
$
18%
Segment Earnings Before Tax :
Fleet Management Solutions
250.1
$
172.2
$
45%
Supply Chain Solutions
69.5
47.1
47%
Dedicated Contract Carriage
32.5
31.0
5%
Eliminations
(24.2)
(19.3)
(26)%
327.9
231.0
42%
Central Support Services (Unallocated Share)
(42.7)
(41.5)
(3)%
Earnings
Before
Restructuring
and
Income
Taxes
(1)
285.2
189.5
51%
Restructuring
and
Other
Charges,
Net
and
Other
Items
(2)
(5.8)
(3.2)
NM
Earnings Before Income Taxes
279.4
186.3
50%
Provision for Income Taxes
(108.0)
(61.7)
(75)%
Earnings from Continuing Operations
171.4
$
124.6
$
38%
Comparable
Earnings
from
Continuing
Operations
(1)
180.6
$
117.0
$
54%
Net Earnings
169.8
$
118.2
$
44%
Memo: Total Revenue
(1)
Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures.
(2)
Our primary measure of segment financial performance excludes restructuring and other charges, net and
other items. The applicable portion of the restructuring and other items that related to each
segment was as follows: FMS – ($5.7) and DCC – ($0.01) in 2011, and SCS – ($3.2) in 2010. |
 02/02/12
Proprietary and Confidential
11
Capital Expenditures
2011 $
2011
2010
O/(U) 2010
Full Service Lease
1,067
$
647
$
420
$
Commercial Rental
622
379
244
Operating Property and Equipment
71
62
8
Gross Capital Expenditures
1,760
1,088
672
Less: Proceeds from Sales (Primarily Revenue Earning Equipment)
300
235
66
Less: Sale and Leaseback of Revenue Earning Equipment
37
-
37
Net Capital Expenditures
1,422
$
853
$
569
$
Memo: Acquisitions
362
$
212
$
150
$
Full Year
($ Millions) |
 02/02/12
Proprietary and Confidential
12
Cash Flow from Continuing Operations
Full Year
($ Millions)
2011
2010
Earnings from Continuing Operations
171
$
125
$
Depreciation
872
834
Gains on Vehicle Sales, Net
(63)
(29)
Amortization and Other Non-Cash Charges, Net
57
57
Pension Contributions
(65)
(64)
Changes in Working Capital and Deferred Taxes
69
105
Cash Provided by Operating Activities
1,042
1,028
Proceeds from Sales (Primarily Revenue Earning Equipment)
300
235
Proceeds from Sale and Leaseback of Assets
37
-
Collections of Direct Finance Leases
62
62
Other, Net
-
3
Total Cash Generated
(1)
1,442
1,328
Capital Expenditures
(2)
(1,699)
(1,070)
Free Cash Flow
(1)(3)
(257)
$
258
$
(1)
Non-GAAP
financial
measure;
refer
to
Appendix
–
Non-GAAP
Financial
Measures.
(2)
Capital expenditures presented net of changes in accounts payable related to
purchases of revenue earning equipment. (3)
Free Cash Flow excludes acquisitions and changes in restricted cash.
|
 02/02/12
Proprietary and Confidential
13
Debt to Equity Ratio
Note:
Includes
impact
of
accumulated
net
pension
related
equity
charge
of
$595
million
as
of
12/31/11
and
$423
million
as
of
12/31/10.
(1)
The
Company
uses
total
obligations
and
total
obligations
to
equity,
non-GAAP
financial
measures;
refer
to
Appendix
–
Non-GAAP Financial Measures.
(2)
Represents
long
term
total
obligations
to
equity
target
of
250
-
300% while maintaining a strong investment grade rating.
($ Millions)
(1)
(2)
12/31/11
12/31/10
Balance Sheet Debt
3,382
$
2,747
$
Percent To Equity
257%
196%
Total Obligations
(1)
3,446
$
2,847
$
Percent To Equity
(1)
261%
203%
Total Equity
1,318
$
1,404
$
2010 Equity
1,404
$
Earnings
170
Net Pension Charge
(173)
Dividends & Other
(83)
2011 Equity
1,318
$
Change to Total Equity
275%
234%
201%
146%
129%
151%
168%
157%
225%
183%
203%
261%
275%
0%
50%
100%
150%
200%
250%
300%
12/31/00
12/31/01
12/31/02
12/31/03
12/31/04
12/31/05
12/31/06
12/31/07
12/31/08
12/31/09
12/31/10
12/31/11
Long
Term
Target
Midpoint
Total Obligations to
Equity
Balance Sheet Debt
to Equity |
 Contents
Fourth Quarter 2011 Results Overview
Asset Management Update
2012 Forecast
Q & A
02/02/12
14
Proprietary and Confidential |
 02/02/12
Proprietary and Confidential
15
Units
held
for
sale
were
6,300
at
quarter
end,
up
21%
from
5,200
units
held
for
sale
in
the
prior year
–
Used vehicle inventory is at the low end of our target range
The number of used vehicles sold in the fourth quarter were 4,200, up 5% from the
prior year
Proceeds per unit were up 29% for tractors and were unchanged for trucks in the
fourth quarter compared with prior year (excluding the impact of exchange
rates) –
Proceeds
per
unit
were
up
5%
for
tractors
and
down
3%
for
trucks
vs.
the
prior
quarter
Vehicles no longer earning revenue were 8,900 at quarter-end, up 1,700 or 24%
from the prior year
Average fourth quarter total commercial rental fleet was up 31%
year-over-year (13% excluding acquisitions)
Global Asset Management Update
(1)
(1)
Units rounded to nearest hundred. |
 Contents
Fourth Quarter 2011 Results Overview
Asset Management Update
2012 Forecast
Q & A
02/02/12
16
Proprietary and Confidential |
 02/02/12
Proprietary and Confidential
17
2012 Forecast Assumptions
General
Moderate economic growth
Improved new sales in all segments
Higher pension costs
Foreign
exchange
rates
assume
continued
strengthening
of
the
dollar
Higher contractual sales and better renewal rates resulting in continued organic
fleet growth throughout the year
Increased rental pricing and demand, with a larger fleet
Higher volume of used vehicle sales with stable pricing
Partial carryover benefits from prior year’s acquisition
Depreciation residual benefit due to higher historical vehicle pricing
Margin benefits resulting from organic growth and productivity initiatives will be
partially
offset
by
higher
maintenance
costs
on
a
slightly
older
lease
fleet
Increased investment for fleet replacement, growth and higher new vehicle
costs FMS |
 02/02/12
Proprietary and Confidential
18
SCS
Revenue growth due to new business and higher volumes
Margin improvement driven by revenue growth
Operational initiatives in the dedicated service offering contribute to improved
margin 2012 Forecast Assumptions |
 Proprietary and Confidential
19
Key Financial Statistics
(1)
Non-GAAP
financial
measure;
refer
to
Appendix
–
Non-GAAP
Financial
Measures.
($ Millions, Except Per Share Amounts)
Note: Earnings per share amounts are calculated independently for each component
and may not be additive due to rounding. 02/02/12
2011
% B / (W)
Revenue:
Operating
(1)
$
5,100
4,815
$
6%
Fuel Services and Subcontracted Transportation
1,200
1,236
(3)%
Total Revenue
$
6,300
6,051
$
4%
Earnings From Continuing Operations:
Earnings Before Income Taxes
$
320 -
328
279
$
15 -
17%
Earnings
$
205 -
210
171
$
20 -
23%
Comparable Earnings Before Income Taxes
(1)
$
322 -
329
285
$
13 -
15%
Comparable Earnings
(1)
$
206 -
211
181
$
14 -
17%
Earnings Per Share (EPS) From Continuing Operations:
EPS
$
3.98 -
4.08
3.31
$
20 -
23%
Comparable EPS
(1)
$
4.00 -
4.10
3.49
$
15 -
17%
Memo: Average
Shares
(Millions)
-
Diluted
50.9
50.9
Tax Rate
35.9%
38.7%
Comparable Tax Rate
(1)
35.9%
36.7%
Adjusted Return on Capital (
Trailing 12 Month
)
(1)
5.9%
5.7%
2012
Forecast |
 02/02/12
Proprietary and Confidential
20
Business Segment Revenue
(1)
Includes fuel revenue.
(2)
Includes full service lease and contract maintenance.
(3)
Represents combined reporting of SCS and DCC activity.
(4)
Includes subcontracted transportation revenue.
2012 Forecast Midpoint Change % vs. 2011
Fleet Management Solutions:
Total
Revenue
(1)
6%
Contractual
Revenue
(2)
5%
Commercial Rental Revenue
17%
Operating Revenue
8%
Supply
Chain
Solutions:
(3)
Total Revenue
(4)
1%
Operating Revenue
2% |
 $4.00 -
4.10
$3.49
$0.05
$0.09
$0.14
$0.22
$0.13 -
0.17
$0.25 -
0.29
($0.18)
($0.11 -
0.13)
($0.06)
2011 EPS
Pension
Plans
Strategic
Investments &
Other
Foreign
Exchange
Tax
Rate
SCS
Acquisitions
(Completed in
2011)
Depreciation /
Residual Impact
FMS
Contractual
Commercial
Rental
2012 Forecast
EPS
02/02/12
Proprietary and Confidential
21
2012 Causes of EPS Change
($ Earnings Per Share)
(1)
2011 Comparable EPS is a Non-GAAP financial measure; refer to Appendix
- Non-GAAP Financial Measures.
(1) |
 02/02/12
Proprietary and Confidential
22
Capital Expenditures, Cash Flow & Leverage
Full Year
($ Millions)
(1)
Non-GAAP
financial
measure;
refer
to
Appendix
-
Non-GAAP
Financial
Measures.
(2)
Free Cash Flow excludes acquisitions. Acquisitions totaled
$362 million in 2011. 2012
Forecast
2011
Full Service Lease -
Replacement
$
1,120 -
1,200
Full Service Lease -
Growth
290 -
310
Full Service Lease
1,410 -
1,510
1,067
$
Commercial Rental -
Replacement
450
Commercial Rental -
Growth
140
Commercial Rental
590
622
Operating Property and Equipment
100
71
Gross Capital Expenditures
2,100 -
2,200
1,760
Less: Proceeds from Sales
390
300
-
37
Net Capital Expenditures
1,710 -
1,810
1,422
Cash Provided by Operating Activities
1,215 -
1,255
1,042
Total Cash Generated
(1)
1,670 -
1,710
1,442
Free Cash Flow
(1) (2)
(400) -
(460)
(257)
$
Total Obligations to Equity
(1)
261% -
265%
261%
Less: Proceeds from Sale and Leaseback |
 Adjusted Return on Capital
(1)
History
Proprietary and Confidential
23
Return on Equity
15.3%
14.6%
15.5%
14.2%
11.2%
4.4%
8.4%
11.9%
15.1%
Adjusted Total
Capital
(1)
$3,359
$3,846
$4,184
$4,789
$4,841
$4,244
$4,030
$4,588
$5,171
ROC O/(U) COC
0.8%
1.0%
1.2%
0.8%
0.8%
(2.2)%
(1.3)%
0.2%
0.9%
02/02/12
(1)
Non-GAAP
financial
measure;
refer
to
Appendix
–
Non-GAAP
Financial
Measures.
Adjusted
Total
Capital
represents
Adjusted
Average
Total
Capital
in
millions.
2012
Forecast
Adjusted
Return on
Capital
(ROC)
(1)
Cost of
Capital (COC) |
 02/02/12
24
EPS Forecast –
Continuing Operations
($ Earnings Per Share)
Proprietary and Confidential
First Quarter
Full Year
2012 Comparable EPS Forecast
(1)
$ 0.55 -
0.58
$ 4.00 -
4.10
2011 Comparable EPS
(1)
$0.51
$3.49
(1)
Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures. 2012
Comparable EPS Forecast excludes $0.02 in restructuring charges. |
 02/02/12
25
Comparable EPS –
Excluding Non-Service Pension Costs
($ Earnings Per Share)
Proprietary and Confidential
Comparable
EPS
(1)
$ 2.09
3.09
3.41
3.94
4.13
4.68
1.70
2.22
3.49
4.05
Non-Service Pension
Costs
(2)
$ 0.44
0.22
0.18
0.22
(0.09)
(0.25)
0.50
0.31
0.22
0.39
Comparable EPS
Excluding Non-Service
Pension Costs
(1) (3)
$ 2.53
3.31
3.59
4.16
4.04
4.43
2.20
2.53
3.71
4.44
Comparable
Earnings Per Share
Excluding Pension
(1) (3)
GAAP EPS
$ 2.09
3.27
3.53
3.99
4.19
4.51
1.62
2.37
3.31
4.03
(1)
Non-GAAP
financial
measure;
refer
to
Appendix
-
Non-GAAP
Financial
Measures.
(2)
Non-service pension costs primarily represents interest cost, expected return
on plan assets and recognized net actuarial gains/losses. (3)
Given
the
potentially
significant
change
in
pension
expense
from
year
to
year
and
the
non-operational
nature
of
pension
expense,
the
company
uses
Comparable
EPS
Excluding Non-
Service Pension Costs, a non-GAAP financial measure, which excludes
non-service pension costs and other non-operational items, to better evaluate year
over year operating performance.
$2.53
$3.31
$3.59
$4.16
$4.04
$4.43
$2.20
$2.53
$3.71
$4.44
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Forecast
Midpoint |
 Q&A
02/02/12
26
Proprietary and Confidential |
 Appendix
Business Segment Detail
Central Support Services
Balance Sheet
Asset Management
Return on Capital History
Financial Indicators Forecast
Pension Expense
New Income Statement Format
Non-GAAP Financial Measures & Reconciliations
02/02/12
27
Proprietary and Confidential |
 02/02/12
Proprietary and Confidential
28
Fleet Management Solutions (FMS)
2011
2010
% B/(W)
Full Service Lease
508.4
$
485.0
$
5%
Contract Maintenance
38.8
39.0
(1)%
Contractual Revenue
547.2
524.0
4%
Contract-related Maintenance
49.1
39.6
24%
Commercial Rental
200.3
145.5
38%
Other
16.7
17.1
(2)%
Operating Revenue
813.3
726.3
12%
Fuel Services Revenue
261.3
221.8
18%
Total Revenue
1,074.7
$
948.1
$
13%
Segment Earnings Before Tax (EBT)
69.9
$
49.5
$
41%
Segment EBT as % of Total Revenue
6.5%
5.2%
Segment EBT as % of Operating Revenue
8.6%
6.8%
Fourth Quarter
($ Millions) |
 02/02/12
Proprietary and Confidential
29
Fleet Management Solutions (FMS)
Full Year
($ Millions)
2011
2010
% B/(W)
Full Service Lease
1,996.3
$
1,934.3
$
3%
Contract Maintenance
155.2
158.8
(2)%
Contractual Revenue
2,151.5
2,093.1
3%
Contract-related Maintenance
192.7
160.9
20%
Commercial Rental
722.6
525.1
38%
Other
69.1
67.4
2%
Operating Revenue
3,135.9
2,846.5
10%
Fuel Services Revenue
1,082.5
865.6
25%
Total Revenue
4,218.3
$
3,712.2
$
14%
Segment Earnings Before Tax (EBT)
250.1
$
172.2
$
45%
Segment EBT as % of Total Revenue
5.9%
4.6%
Segment EBT as % of Operating Revenue
8.0%
6.0%
Adjusted Return on Capital
5.8%
5.1% |
 02/02/12
Proprietary and Confidential
30
Supply Chain Solutions (SCS)
Fourth Quarter
($ Millions)
2011
2010
% B/(W)
Automotive
123.3
$
114.3
$
8%
High-Tech
59.4
59.3
-
Retail & CPG
103.2
46.0
124%
Industrial & Other
38.8
38.7
-
Operating Revenue
324.7
258.3
26%
Subcontracted Transportation
84.0
66.8
26%
Total Revenue
408.7
$
325.1
$
26%
Segment Earnings Before Tax (EBT)
17.8
$
12.3
$
44%
Segment EBT as % of Total Revenue
4.3%
3.8%
Segment EBT as % of Operating Revenue
5.5%
4.8%
Memo: Fuel Costs
26.2
$
21.0
$
(25)% |
 02/02/12
31
Supply Chain Solutions (SCS)
Full Year
($ Millions)
2011
2010
% B/(W)
Automotive
469.2
$
449.2
$
4%
High-Tech
236.1
220.5
7%
Retail & CPG
420.5
177.8
137%
Industrial & Other
165.0
157.5
5%
Operating Revenue
1,290.9
1,005.0
28%
Subcontracted Transportation
314.5
247.3
27%
Total Revenue
1,605.4
$
1,252.3
$
28%
Segment Earnings Before Tax (EBT)
69.5
$
47.1
$
47%
Segment EBT as % of Total Revenue
4.3%
3.8%
Segment EBT as % of Operating Revenue
5.4%
4.7%
Adjusted Return on Capital
11.2%
16.9%
Memo: Fuel Costs
96.4
$
78.8
$
(22)%
31
Proprietary and Confidential |
 02/02/12
Proprietary and Confidential
32
Dedicated Contract Carriage (DCC)
Fourth Quarter
($ Millions)
2011
2010
% B/(W)
Operating Revenue
147.1
$
119.3
$
23%
Subcontracted Transportation
9.5
2.6
269%
Total Revenue
156.6
$
121.8
$
29%
Segment Earnings Before Tax (EBT)
7.0
$
6.5
$
7%
Segment EBT as % of Total Revenue
4.5%
5.3%
Segment EBT as % of Operating Revenue
4.8%
5.5%
Memo: Fuel Costs
33.7
$
22.3
$
(51)% |
 02/02/12
Dedicated Contract Carriage (DCC)
2011
2010
% B/(W)
Operating Revenue
566.6
$
468.5
$
21%
Subcontracted Transportation
34.0
14.0
142%
Total Revenue
600.7
$
482.6
$
24%
Segment Earnings Before Tax Earnings (EBT)
32.5
$
31.0
$
5%
Segment EBT as % of Total Revenue
5.4%
6.4%
Segment EBT as % of Operating Revenue
5.7%
6.6%
Adjusted Return on Capital
16.6%
18.2%
Memo: Fuel Costs
127.3
$
83.9
$
(52)%
Full Year
($ Millions)
33
Proprietary and Confidential |
 02/02/12
Proprietary and Confidential
34
Central Support Services (CSS)
2011
2010
% B/(W)
Allocated CSS Costs
40.8
$
37.2
$
(10)%
Unallocated CSS Costs
11.1
10.8
(3)%
Total CSS Costs
52.0
$
48.0
$
(8)%
Fourth Quarter
($ Millions) |
 02/02/12
Central Support Services (CSS)
2011
2010
% B/(W)
Allocated CSS Costs
161.1
$
142.2
$
(13)%
Unallocated CSS Costs
42.7
41.5
(3)%
Total CSS Costs
203.8
$
183.7
$
(11)%
Full Year
($ Millions)
35
Proprietary and Confidential |
 02/02/12
Proprietary and Confidential
36
Balance Sheet
December 31,
December 31,
2011
2010
Cash and Cash Equivalents
105
$
213
$
Other Current Assets
984
810
Revenue Earning Equipment, Net
5,050
4,201
Operating Property and Equipment, Net
624
607
Other Assets
856
821
Total Assets
7,618
$
6,652
$
Short-Term Debt / Current Portion Long-Term Debt
274
$
420
$
Other Current Liabilities
900
711
Long-Term Debt
3,108
2,327
Other Non-Current Liabilities (including Deferred Income Taxes)
2,018
1,790
Shareholders' Equity
1,318
1,404
Total Liabilities and Shareholders' Equity
7,618
$
6,652
$
($ Millions) |
 U.S. Asset Management Update
(a)
(a)
U.S. only
(b)
Excludes early terminations where customer purchases vehicle
(c)
Current year statistics may exclude some units due to a lag in reporting
(b)(c)
Number of
Units
3,469
4,350
3,929
4,103
4,243
4,793
3,824
5,168
4,698
4,363
7,537
6,096
4,698
9,060
3,636
4,190
7,784
3,012
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Redeployments
Extensions
Early Terminations
FY 06
FY 07
FY 08
FY 09
FY 10
FY 11
02/02/12
37
Proprietary and Confidential
Redeployments
–
vehicles
coming off-lease with useful
life remaining are redeployed
in the Ryder fleet (Commercial
Rental, DCC, SCS, or with
another Lease customer).
–
Ryder
re-prices
lease contract and extends
maturity date.
–
customer elects to terminate
lease prior to maturity.
Depending on the remaining
useful life, the vehicle may be
redeployed in the Ryder fleet
(Commercial Rental, DCC,
SCS, other Lease customer) or
sold by Ryder.
Extensions
Early
terminations |
 02/02/12
Proprietary and Confidential
38
2000
2001
2002
2003
2004
2005
2006
2007
2008
Financial Indicators Forecast
(1)
Gross Capital Expenditures
(3)
($ Millions)
Total Cash Generated
(2) (3)
Total Obligations to Equity Ratio
(2)
$1,289
$600
$725
$1,165
$657
$1,399
$1,182
2000
2001
2002
2003
2004
2005
Memo: Free Cash Flow
(2) (3)
$1,757
2006
2007
2008
$1,265
2009
2010
2010
2009
$611
131
367
357
289
(208)
(4)
380
(242)
(439)
341
614
$1,088
Total Obligations to Equity
Balance Sheet Debt to Equity
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
275%
146%
129%
234%
151%
157%
168%
225%
183%
203%
201%
Significant and predictable cash generation
Invest in growth (organic, acquisitions)
Over time appropriately move financial
leverage towards long term target of
250-300% Total Obligations to Equity
263%
Long
Term
Target
Midpoint
2011
(430)
2012
Forecast
Midpoint
2011
261%
Forecast
Midpoint
258
$1,760
Full Service Lease
PP&E/Other
Commercial Rental
2012
275%
2012
Forecast
Midpoint
$2,200
2011
(257)
$1,054
$835
$949
$1,091
$1,381
$1,179
$1,252
$1,684
$1,571
$1,266
$1,328
$1,442
$1,690
(1)
Obligations to Equity include acquisitions. Free Cash Flow and Gross Capital Expenditures exclude
acquisitions.
(2)
Non-GAAP financial measure; refer to Appendix - Non-GAAP Financial Measures.
(3)
2000-2004 not restated for operations discontinued in 2009.
(4)
Includes $176 million payment to the IRS related to full resolution of 1998 - 2000 tax period
matters. |
 02/02/12
Proprietary and Confidential
39
Pension Expense
($ Millions)
2011 Pension Expense
38
Lower than Assumed Return on Assets in 2011
11
Lower Expected Return Assumption
7
Benefit of Pension Contributions
(6)
Lower Discount Rate
4
2012 Estimated Pension Expense
54
$
$ |
 New
Income
Statement
Format
-
2011
Proprietary and Confidential
40
02/02/12
($ Millions)
1Q 2011
2Q 2011
3Q 2011
4Q 2011
FY 2011
Lease & Rental Revenues
579.4
$
634.7
$
675.3
$
664.5
$
2,553.9
$
Services Revenue
632.7
640.5
669.9
666.0
2,609.2
Fuel Services Revenue
213.2
238.1
225.5
210.6
887.5
Total Revenues
1,425.4
1,513.3
1,570.7
1,541.1
6,050.5
Cost of Lease & Rental
408.5
429.2
461.8
446.6
1,746.1
Cost of Services
537.9
533.6
554.9
560.0
2,186.4
Cost of Fuel Services
209.0
233.5
223.3
207.7
873.5
Other Operating Expenses
34.6
30.2
30.3
34.1
129.2
Selling, General & Administrative Expenses
173.1
195.2
200.1
202.9
771.2
Gain on Vehicle Sales, net
(12.3)
(15.7)
(18.3)
(16.6)
(62.9)
Interest Expense
34.4
33.0
32.7
33.0
133.2
Miscellaneous Income, net
(4.1)
(0.6)
(1.7)
(2.6)
(9.1)
Restructuring and Other Charges, net
0.8
-
-
2.9
3.7
1,381.8
1,438.3
1,483.1
1,468.0
5,771.2
Earnings Before Income Taxes
43.6
75.0
87.6
73.1
279.4
Provision for Income Taxes
17.8
34.1
30.7
25.4
108.0
Earnings from Continuing Operations
25.9
$
40.9
$
56.9
$
47.7
$
171.4
$ |
 New
Income Statement Format - 2010
Proprietary and Confidential
41
02/02/12
($ Millions)
1Q 2010
2Q 2010
3Q 2010
4Q 2010
FY 2010
Lease & Rental Revenues
543.6
$
574.4
$
597.5
$
594.4
$
2,309.8
$
Services Revenue
504.3
527.3
541.2
536.9
2,109.7
Fuel Services Revenue
172.0
184.4
178.3
182.1
716.9
Total Revenues
1,219.9
1,286.1
1,316.9
1,313.4
5,136.4
Cost of Lease & Rental
387.6
396.4
414.7
405.6
1,604.3
Cost of Services
423.0
438.5
450.4
451.2
1,763.0
Cost of Fuel Services
167.6
179.4
173.8
178.3
699.1
Other Operating Expenses
39.8
32.8
30.8
30.8
134.2
Selling, General & Administrative Expenses
152.2
162.6
163.0
177.6
655.4
Gain on Vehicle Sales, net
(4.5)
(6.6)
(6.9)
(10.7)
(28.7)
Interest Expense
33.3
31.2
31.9
33.6
130.0
Miscellaneous Income, net
(1.5)
(0.3)
(2.7)
(2.6)
(7.1)
Restructuring and Other Charges, net
-
(0.0)
0.0
(0.0)
(0.0)
1,197.4
1,233.9
1,254.9
1,263.8
4,950.1
Earnings Before Income Taxes
22.5
52.2
62.0
49.6
186.3
Provision for Income Taxes
9.6
21.6
22.3
8.1
61.7
Earnings from Continuing Operations
12.9
$
30.6
$
39.7
$
41.5
$
124.6
$ |
 New
Income Statement Format - 2009
Proprietary and Confidential
42
02/02/12
($ Millions)
1Q 2009
2Q 2009
3Q 2009
4Q 2009
FY 2009
Lease & Rental Revenues
551.0
$
574.5
$
573.7
$
566.6
$
2,265.9
$
Services Revenue
481.0
488.1
512.8
513.6
1,995.5
Fuel Services Revenue
142.4
149.4
167.3
166.8
625.9
Total Revenues
1,174.4
1,212.0
1,253.9
1,247.0
4,887.3
Cost of Lease & Rental
378.5
386.6
396.6
391.2
1,553.0
Cost of Services
407.5
402.8
418.3
433.7
1,662.3
Cost of Fuel Services
136.6
145.1
160.7
162.0
604.4
Other Operating Expenses
44.5
42.9
38.4
37.6
163.5
Selling, General & Administrative Expenses
146.7
156.6
161.9
160.3
625.5
Gain on Vehicle Sales, net
(3.4)
(2.4)
(3.3)
(3.2)
(12.3)
Interest Expense
38.1
36.6
35.7
33.9
144.3
Miscellaneous Income, net
0.6
(1.4)
(2.4)
(0.5)
(3.7)
Restructuring and Other Charges, net
2.8
(0.2)
3.7
0.1
6.4
1,152.0
1,166.7
1,209.6
1,215.2
4,743.5
Earnings Before Income Taxes
22.4
45.3
44.2
31.8
143.8
Provision for Income Taxes
11.5
18.3
15.8
8.1
53.7
Earnings from Continuing Operations
10.9
$
27.1
$
28.4
$
23.7
$
90.1
$ |
 02/02/12
Proprietary and Confidential
43
Non-GAAP Financial Measures
This presentation includes “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 & Additional Information
Presented on Slide Titled
Page
Operating Revenue / Operating Revenue Forecast
Total Revenue / Total Revenue Forecast
Key Financial Statistics
5,6,19
Earnings Before Restructuring and Income Taxes
Earnings before Income Taxes
Business Segments
9-10
Comparable EPS Excluding Pension
EPS
Comparable EPS
–
Excluding Non-Service
Pension Costs
25
Comparable Earnings / Comparable EPS
Earnings / EPS from Continuing Operations
Earnings and EPS from Continuing Operations
Reconciliation
44
Comparable Earnings Before Income Tax /
Comparable Tax Rate
Earnings Before Income Tax / Tax Rate
EBT and Tax Rate from Continuing Operations
Reconciliation
45-46
Comparable EPS Forecast
EPS Forecast
EPS Forecast –
Continuing Operations
24
Adjusted Return on Capital / Adjusted Total Capital
Net Earnings / Total Capital
Adjusted Return on Capital Reconciliation
Segment Adjusted Return on Capital
Reconciliation
47-50
Total Cash Generated / Free Cash Flow
Cash Provided by Operating Activities
Cash Flow Reconciliation
53-54
Total Obligations / Total Obligations to Equity
Balance Sheet Debt / Debt to Equity
Debt to Equity Ratio
Debt to Equity Reconciliation
51-52
FMS / SCS / DCC Operating Revenue and Segment
EBT as % of Operating Revenue
FMS / SCS / DCC Total Revenue and Segment
EBT as % of Total Revenue
Fleet Management Solutions / Supply Chain
Solutions / Dedicated Contract Carriage
28-33 |
 Earnings and EPS from Continuing Operations Reconciliation
($ Millions or $ Earnings Per Share)
4Q11 -
4Q11 -
4Q10 -
4Q10 -
Earnings
EPS
Earnings
EPS
Reported
47.7
$
0.92
$
41.4
$
0.80
$
Int'l Asset Gain on Sale
-
-
(0.9)
(0.02)
Tax Benefits
-
-
(10.8)
(0.21)
Acquisition Related Transaction Costs
0.4
0.01
4.1
0.08
Restructuring Charges
2.0
0.04
-
-
Comparable
50.1
$
0.97
$
33.8
$
0.65
$
FY11 -
FY11 -
FY10 -
FY10 -
Earnings
EPS
Earnings
EPS
Reported
171.4
$
3.31
$
124.6
$
2.37
$
Int'l Asset Gain on Sale
-
-
(0.9)
(0.02)
Tax Law Changes/Benefits
4.8
0.09
(10.8)
(0.21)
Acquisition Related Transaction Costs
1.9
0.04
4.1
0.08
Restructuring Charges
2.5
0.05
-
-
Comparable
180.6
$
3.49
$
117.0
$
2.22
$
Proprietary and Confidential
44
44
Proprietary and Confidential
02/02/12 |
 45
EBT and Tax Rate from Continuing Operations Reconciliation
($ Millions or $ Earnings Per Share)
02/02/12
45
Proprietary and Confidential
4Q11 -
4Q11 -
4Q11 -
EBT
Tax
Tax Rate
Reported
73.1
$
25.4
$
34.8%
Acquisition Related Transaction Costs
0.4
-
Restructuring Charges
2.9
0.9
Comparable
76.4
$
26.3
$
34.4%
FY11 -
FY11 -
FY11 -
EBT
Tax
Tax Rate
Reported
279.4
$
108.0
$
38.7%
Tax Law Changes / Benefits
-
(4.8)
Acquisition Related Transaction Costs
2.1
0.2
Restructuring Charges
3.7
1.2
Comparable
285.2
$
104.6
$
36.7% |
 46
EBT and Tax Rate from Continuing Operations Reconciliation
($ Millions or $ Earnings Per Share)
02/02/12
46
Proprietary and Confidential
4Q10 -
4Q10 -
4Q10 -
EBT
Tax
Tax Rate
Reported
49.6
$
8.1
$
16.4%
Gain on Sale of Building
(0.9)
-
Tax Benefits
-
10.8
Acquisition Costs
4.1
-
Comparable
52.7
$
18.9
$
35.9%
FY10 -
FY10 -
FY10 -
EBT
Tax
Tax Rate
Reported
186.3
$
61.7
$
33.1%
Gain on Sale of Building
(0.9)
-
Tax Benefits
-
10.8
Acquisition Costs
4.1
-
Comparable
189.4
$
72.6
$
38.3% |
 02/02/12
Proprietary and Confidential
47
Adjusted Return on Capital Reconciliation
($ Millions)
(1)
Earnings calculated based on a 12-month rolling period.
(2)
Interest expense includes interest on off-balance sheet vehicle
obligations. (3)
Income taxes were calculated by excluding taxes related to comparable earnings
items and interest expense. (4)
The average is calculated based on the average GAAP balances.
(5)
Represents comparable earnings items for those periods.
(6)
The Company adopted adjusted return on capital, a non GAAP financial measure, as
the Company believes that both debt (includes off-balance sheet debt) and equity should be
included in evaluated how effectively capital is utilized across the
business. 2004
2005
2006
2007
2008
2009
Net earnings
(1)
216
$
227
$
249
$
254
$
200
$
62
$
Cumulative effect of change in
accounting principle
-
2
-
-
-
-
Restructuring and other charges,
net and other items
(24)
(2)
-
1
70
30
Income taxes
115
129
144
152
150
54
Adjusted earnings before income
taxes
307
357
393
407
420
146
Adjusted interest expense
(2)
106
127
149
169
165
150
Adjusted income taxes
(3)
(156)
(186)
(207)
(220)
(230)
(122)
Adjusted net earnings
257
$
298
$
332
$
356
$
355
$
174
$
Average total debt
(4)
1,811
$
2,148
$
2,480
$
2,848
$
2,882
$
2,692
$
Average off-balance sheet debt
(4)
152
148
99
150
171
142
Average total shareholders'
equity
(4)
1,412
1,555
1,610
1,791
1,778
1,396
Average adjustments to
shareholders' equity
(5)
(16)
(5)
(5)
1
10
16
Adjusted average total capital
3,359
$
3,846
$
4,184
$
4,789
$
4,841
$
4,245
$
Adjusted return on capital
(6)
7.7%
7.8%
7.9%
7.4%
7.3%
4.1% |
 02/02/12
Proprietary and Confidential
48
Adjusted Return on Capital Reconciliation
2010
2011
Net Earnings
(1)
118
$
170
$
Restructuring and Other Charges, Net and Other Items
6
6
Income Taxes
61
108
Adjusted Earnings Before Income Taxes
185
284
Adjusted Interest Expense
(2)
133
135
Adjusted Income Taxes
(3)
(124)
(157)
Adjusted Net Earnings
194
$
262
$
Average Total Debt
(4)
2,512
$
3,079
$
Average Off-Balance Sheet Debt
(4)
114
78
Average Total Shareholders' Equity
(4)
1,402
1,428
Average Adjustments to Shareholders' Equity
(5)
2
4
Adjusted Average Total Capital
4,030
$
4,588
$
Adjusted Return on Capital
(6)
4.8%
5.7%
($ Millions)
(1)
Earnings calculated based on a 12-month rolling period.
(2)
Interest expense includes interest on off-balance sheet vehicle
obligations. (3)
Income taxes were calculated by excluding taxes related to comparable earnings
items and interest expense. (4)
The average is calculated based on the average GAAP balances.
(5)
Represents comparable earnings items for those periods.
(6)
The Company adopted adjusted return on capital, a non GAAP financial measure, as
the Company believes that both debt (includes off-balance sheet debt) and equity should be
included in evaluated how effectively capital is utilized across the
business. |
 02/02/12
Proprietary and Confidential
49
Segment Adjusted Return on Capital Reconciliation
FMS
SCS
DCC
Net Earnings
(1)
152
$
43
$
20
$
Restructuring and Other Charges, Net and Other Items
6
-
-
Income Taxes
92
26
13
Adjusted Earnings Before Income Taxes
250
69
33
Adjusted Interest Expense
(2)
135
5
3
Adjusted Income Taxes
(3)
(136)
(29)
(15)
Adjusted Net Earnings
249
$
46
$
21
$
Average Total Debt
(4)
3,085
$
43
$
(53)
$
Average Off-Balance Sheet Debt
(4)
76
93
127
Average Total Shareholders' Equity
(4)
1,144
270
50
Average Adjustments to Shareholders' Equity
(5)
5
-
-
Adjusted Average Total Capital
4,310
$
406
$
125
$
Adjusted Return on Capital
(6)
5.8%
11.2%
16.6%
($ Millions)
2011
(1)
Earnings calculated based on a 12-month rolling period.
(2)
Interest expense includes interest on off-balance sheet vehicle
obligations. (3)
Income taxes were calculated by excluding taxes related to comparable earnings
items and interest expense. (4)
The average is calculated based on the average GAAP balances.
(5)
Represents comparable earnings items for those periods.
(6)
The Company adopted adjusted return on capital, a non GAAP financial measure, as
the Company believes that both debt (includes off-balance sheet debt) and equity should be
included in evaluated how effectively capital is utilized across the
business. |
 02/02/12
Proprietary and Confidential
50
Segment Adjusted Return on Capital Reconciliation
($ Millions)
2010
(1)
Earnings calculated based on a 12-month rolling period.
(2)
Interest expense includes interest on off-balance sheet vehicle
obligations. (3)
Income taxes were calculated by excluding taxes related to comparable earnings
items and interest expense. (4)
The average is calculated based on the average GAAP balances.
(5)
Represents comparable earnings items for those periods.
(6)
The Company adopted adjusted return on capital, a non GAAP financial measure, as
the Company believes that both debt (includes off-balance sheet debt) and equity should be
included in evaluated how effectively capital is utilized across the
business. FMS
SCS
DCC
Net Earnings
(1)
118
$
26
$
19
$
Restructuring and Other Charges, Net and Other Items
-
3
-
Income Taxes
54
18
12
Adjusted Earnings Before Income Taxes
172
47
31
Adjusted Interest Expense
(2)
134
5
2
Adjusted Income Taxes
(3)
(103)
(20)
(14)
Adjusted Net Earnings
203
$
32
$
19
$
Average Total Debt
(4)
2,565
$
(6)
$
(41)
$
Average Off-Balance Sheet Debt
(4)
111
81
116
Average Total Shareholders' Equity
(4)
1,283
115
30
Average Adjustments to Shareholders' Equity
(5)
-
1
-
Adjusted Average Total Capital
3,959
$
191
$
75
$
Adjusted Return on Capital
(6)
5.1%
16.9%
18.2% |
 02/02/12
Proprietary and Confidential
51
Debt to Equity Reconciliation
% to
% to
% to
% to
% to
% to
% to
% to
12/31/00
Equity
12/31/01
Equity
12/31/02
Equity
12/31/03
Equity
12/31/04
Equity
12/31/05
Equity
12/31/06
Equity
12/31/07
Equity
Balance Sheet Debt
$2,017
161%
$1,709
139%
$1,552
140%
$1,816
135%
$1,783
118%
$2,185
143%
$2,817
164%
$2,776
147%
Receivables Sold
345
110
-
-
-
-
-
-
PV of minimum
lease payments
and guaranteed
residual values
under operating
leases for
vehicles
879
625
370
153
161
117
78
178
PV of contingent
rentals under
securitizations
209
441
311
-
-
-
-
-
Total Obligations
$3,450
275%
$2,885
234%
$2,233
201%
$1,969
146%
$1,944
129%
$2,302
151%
$2,895
168%
$2,954
157%
($ Millions)
Note: In connection with adopting FIN 46 effective July 1, 2003, the Company consolidated the vehicle
securitization trusts previously disclosed as off-balance sheet debt. |
 02/02/12
Proprietary and Confidential
52
Debt to Equity Reconciliation
($ Millions)
Note: Amounts may not recalculate due to rounding.
% to
% to
% to
% to
12/31/08
Equity
12/31/09
Equity
12/31/10
Equity
12/31/11
Equity
Balance Sheet Debt
$2,863
213%
$2,498
175%
$2,747
196%
$3,382
257%
Receivables Sold
-
-
-
-
PV of minimum
lease payments and
guaranteed residual
values under
operating leases for
vehicles
163
119
100
64
Total Obligations
$3,026
225%
$2,617
183%
$2,847
203%
$3,446
261% |
 02/02/12
Proprietary and Confidential
53
($ Millions)
Cash Flow Reconciliation
12/31/00
(4)
12/31/01
(4)
12/31/02
(4)
12/31/03
(4)
12/31/04
(4)
12/31/05
12/31/06
12/31/07
12/31/08
12/31/09
Cash Provided by Operating Activities
1,023
$
365
$
617
$
803
$
867
$
776
$
852
$
1,097
$
1,248
$
985
$
Less: Changes in Bal. of Trade Rec. Sold
(270)
235
110
-
-
-
-
-
-
-
Collections of Direct Finance Leases
67
66
66
61
64
69
65
62
61
65
Proceeds from Sale (Prim. Rev. Earn. Equip.)
230
173
152
210
331
333
332
373
262
216
Proceeds from Sale & Leaseback of Assets
-
-
-
13
118
-
-
150
-
-
Other Investing, Net
4
(4)
4
4
1
-
2
2
-
-
Total Cash Generated
(1)
1,054
835
949
1,091
1,381
1,179
1,252
1,684
1,571
1,266
Capital Expenditures
(2)
(1,296)
(704)
(582)
(734)
(1,092)
(1,387)
(1,691)
(1,304)
(1,230)
(652)
Free Cash Flow
(3)(5)
(242)
$
131
$
367
$
357
$
289
$
(208)
$
(439)
$
380
$
341
$
614
$
Memo:
Depreciation Expense
580
$
545
$
552
$
625
$
706
$
735
$
739
$
811
$
836
$
881
$
Gains on Vehicle Sales, Net
19
$
12
$
14
$
16
$
35
$
47
$
51
$
44
$
39
$
12
$
(1)
The Company uses total cash generated, a non-GAAP financial measure, because management considers
it to be an important measure of comparative operating performance. Management believes
total cash generated provides investors with an important measure of total cash inflows generated from our on-going business activities which include sales of
revenue earning equipment, sales of operating property and equipment, sale and leaseback of revenue
earning equipment, collections on direct finance leases and other cash inflows.
(2)
Capital expenditures presented net of changes in accounts payable related to purchases of revenue
earning equipment.
(3)
The Company uses free cash flow, a non-GAAP financial measure, because management considers it to
be an important measure of comparative operating performance. Management believes free cash
flow provides investors with an important perspective on the cash available for debt service and shareholders after making capital investments required to support
ongoing business operations. The calculation of free cash flow may be different from the calculation
used by other companies and therefore comparability may be limited.
(4)
Amounts have not been recasted for discontinued operations. (5)
Free Cash Flow excludes acquisitions and changes in restricted cash. |
 02/02/12
Proprietary and Confidential
54
($ Millions)
Cash Flow Reconciliation
(1)
The Company uses total cash generated, a non-GAAP financial measure, because management considers
it to be an important measure of comparative operating performance. Management believes
total cash generated provides investors with an important measure of total cash inflows generated from our on-going business activities which include sales of
revenue earning equipment, sales of operating property and equipment, sale and leaseback of revenue
earning equipment, collections on direct finance leases and other cash inflows.
(2)
Capital expenditures presented net of changes in accounts payable related to purchases of revenue
earning equipment. (3)
The Company uses free cash flow, a non-GAAP financial measure, because management considers it to
be an important measure of comparative operating performance. Management believes free cash
flow provides investors with an important perspective on the cash available for debt service and shareholders after making capital investments required to support
ongoing business operations. The calculation of free cash flow may be different from the calculation
used by other companies and therefore comparability may be limited.
(4)
Free Cash Flow excludes acquisitions and changes in restricted cash. 12/31/10
12/31/11
Cash Provided by Operating Activities from Continuing Operations
1,028
$
1,042
$
Proceeds from Sales (Primarily Revenue Earning Equipment)
235
300
Proceeds from Sale and Leaseback of Assets
-
37
Collections of Direct Finance Leases
62
62
Other, Net
3
-
Total Cash Generated
(1)
1,328
1,442
Capital Expenditures
(2)
(1,070)
(1,699)
Free Cash Flow
(3)(4)
258
$
(257)
$
Memo:
Depreciation Expense
834
$
872
$
Gains on Vehicle Sales, Net
29
$
63
$ |
 |