Delivers Solid Q1 Results; Raises Full-Year 2024 Forecast
First Quarter 2024 Highlights
-
GAAP EPS from continuing operations of
$1.89 compared to$2.95 in prior year -
Comparable EPS (non-GAAP) from continuing operations of
$2.14 , as compared to$2.81 in prior year, reflecting weaker market conditions in used vehicle sales and rental, partially offset by higherSupply Chain Solutions (SCS) and ChoiceLease results -
Total revenue of
$3.1 billion compared to$3.0 billion in prior year -
Operating revenue (non-GAAP) of
$2.5 billion , up 6%, reflecting recent acquisitions and contractual revenue growth, partially offset by lower commercial rental revenue inFleet Management Solutions (FMS)
Full-Year 2024 Forecast
- ROE of 15.5% - 16.5%
-
Comparable EPS (non-GAAP) of
$11.75 -$12.50 - Operating revenue (non-GAAP) expected to increase by approximately 10%
-
Net cash provided by operating activities from continuing operations of
$2.4 billion and free cash flow (non-GAAP) of negative$175 -$275 million
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240423661437/en/
Ryder is a leader in supply chain, dedicated transportation, and fleet management solutions. (Photo: Business Wire)
(In millions, except EPS) |
|
Earnings
|
|
Earnings |
|
Diluted
|
|||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||
Continuing operations (GAAP) |
|
$ |
114 |
|
201 |
|
$ |
85 |
|
140 |
|
$ |
1.89 |
|
2.95 |
Comparable (non-GAAP) |
|
$ |
129 |
|
179 |
|
$ |
96 |
|
133 |
|
$ |
2.14 |
|
2.81 |
Total and operating revenue for the three months ended
(In millions) |
|
Total Revenue |
|
Operating Revenue
|
||||||||||
|
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
||
Total |
|
$ |
3,098 |
|
2,952 |
|
5% |
|
$ |
2,495 |
|
2,346 |
|
6% |
|
|
$ |
1,455 |
|
1,503 |
|
(3)% |
|
$ |
1,251 |
|
1,262 |
|
(1)% |
|
|
$ |
1,302 |
|
1,201 |
|
8% |
|
$ |
972 |
|
879 |
|
11% |
Dedicated Transportation Solutions (DTS) |
|
$ |
563 |
|
454 |
|
24% |
|
$ |
427 |
|
322 |
|
33% |
CEO Comment
"Ryder delivered solid first-quarter results amid a challenging freight environment by continuing to execute on our balanced growth strategy," says
"We remain focused on profitable growth of our contractual lease, supply chain, and dedicated businesses as part of our balanced growth strategy. Higher ChoiceLease results and our maintenance cost saving initiative benefited FMS results. Strong automotive performance as well as earnings from recent acquisitions benefited SCS. In DTS, integration of the Cardinal acquisition is on track and we expect to achieve planned synergies.
"Our strong balance sheet continues to provide us with capacity to fund organic growth, share repurchases, and strategic acquisitions.
"Throughout the current freight cycle downturn, our transformed business model has consistently outperformed prior cycles. We remain confident that the changes we've made to the business will continue to generate higher highs and higher lows while positioning us to benefit from the cycle upturn."
First Quarter 2024 Segment Review
(In millions) |
|
1Q24 |
|
1Q23 |
|
Change |
|||
Total Revenue |
|
$ |
1,455 |
|
|
1,503 |
|
|
(3)% |
Operating Revenue (1) |
|
$ |
1,251 |
|
|
1,262 |
|
|
(1)% |
|
|
|
|
|
|
|
|||
Earnings Before Tax (EBT) |
|
$ |
100 |
|
|
182 |
|
|
(45)% |
EBT as a % of total revenue |
|
6.9% |
|
12.1% |
|
(520) bps |
|||
EBT as a % of operating revenue (1) |
|
8.0% |
|
14.4% |
|
(640) bps |
|||
|
|
|
|
|
|
|
|||
(1) Non-GAAP financial measure excluding fuel service revenue. |
-
FMS total revenue and operating revenue decreased 3% and 1%, respectively
- Total revenue reflects lower fuel costs passed through to customers and lower operating revenue
- Operating revenue reflects lower commercial rental revenue, largely offset by higher ChoiceLease revenue
-
FMS EBT of
$100 million - Reflects lower used vehicle pricing compared to elevated levels in the prior year as well as weaker rental demand, partially offset by higher ChoiceLease results and maintenance cost savings initiatives
- Lower used vehicle gains reflect decreases in used truck and tractor pricing of 30% and 34%, respectively, partially offset by higher volumes; sequentially from fourth quarter of 2023, used truck and tractor pricing decreased 3% and 4%, respectively
- Rental power-fleet utilization was 66%, down from 75% in prior year on a 13% smaller average power fleet
(In millions) |
|
1Q24 |
|
1Q23 |
|
Change |
|||
Total Revenue |
|
$ |
1,302 |
|
|
1,201 |
|
|
8% |
Operating Revenue (1) |
|
$ |
972 |
|
|
879 |
|
|
11% |
|
|
|
|
|
|
|
|||
Earnings Before Tax (EBT) |
|
$ |
64 |
|
|
17 |
|
|
267% |
EBT as a % of total revenue |
|
4.9% |
|
1.4% |
|
350 bps |
|||
EBT as a % of operating revenue (1) |
|
6.6% |
|
1.9% |
|
470 bps |
|||
|
|
|
|
|
|
|
|||
(1) Non-GAAP financial measure excluding fuel and subcontracted transportation. |
-
SCS total revenue and operating revenue increased 8%and11%, respectively
- Total revenue reflects increased operating revenue and higher subcontracted transportation costs passed through to customers
- Increase in operating revenue driven primarily by recent acquisitions
-
SCS EBT grew to
$64 million -
Year-over-year comparisons benefited from a prior-year
$30 million asset impairment charge - Results also benefited from stronger automotive performance and recent acquisitions
-
Year-over-year comparisons benefited from a prior-year
Dedicated Transportation Solutions: Earnings Reflect Acquisition Integration Costs
(In millions) |
|
1Q24 |
|
1Q23 |
|
Change |
|||
Total Revenue |
|
$ |
563 |
|
|
454 |
|
|
24% |
Operating Revenue (1) |
|
$ |
427 |
|
|
322 |
|
|
33% |
|
|
|
|
|
|
|
|||
Earnings Before Tax (EBT) |
|
$ |
18 |
|
|
29 |
|
|
(38)% |
EBT as a % of total revenue |
|
|
3.2% |
|
6.4% |
|
(320) bps |
||
EBT as a % of operating revenue (1) |
|
|
4.2% |
|
9.0% |
|
(480) bps |
||
|
|
|
|
|
|
|
|||
(1) Non-GAAP financial measure excluding fuel and subcontracted transportation. |
-
DTS total revenue increased 24% and operating revenue grew 33%
- Total and operating revenue increased due to the Cardinal Logistics acquisition
-
DTS EBT of
$18 million - Decrease due to Cardinal Logistics' acquisition integration and other related costs, as well as higher insurance costs
Corporate Financial Information
Capital Expenditures, Cash Flow, and Leverage
First-quarter capital expenditures decreased to
First-quarter net cash provided by operating activities from continuing operations was
Debt-to-equity as of
Outlook
"As we look ahead, we are focused on the successful integration of our recent acquisitions and executing on our asset management playbook through this challenging freight environment," says Ryder Chief Financial Officer
|
Full Year 2024 |
Total Revenue Growth |
~10% |
Operating Revenue Growth (non-GAAP) |
~10% |
FY24 GAAP EPS |
|
FY24 Comparable EPS (non-GAAP) |
|
|
|
Adjusted ROE (1) |
15.5% - 16.5% |
|
|
Free Cash Flow (non-GAAP) |
|
Capital Expenditures |
|
Debt-to-Equity |
~240% |
|
|
|
Second Quarter 2024 |
2Q24 GAAP EPS |
|
2Q24 Comparable EPS (non-GAAP) |
|
———————————— |
|
(1) The non-GAAP elements of this calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of net earnings to adjusted net earnings and average shareholders' equity to adjusted average equity is provided in the Appendix - Non-GAAP Financial Measures Reconciliations at the end of this release. |
Supplemental Company Information
First Quarter Net Earnings
(In millions, except EPS) |
|
Earnings |
|
Diluted EPS |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Earnings from continuing operations |
|
$ |
85 |
|
140 |
|
|
$ |
1.89 |
|
2.95 |
|
Discontinued operations |
|
|
— |
|
(1 |
) |
|
|
— |
|
(0.01 |
) |
Net earnings |
|
$ |
85 |
|
139 |
|
|
$ |
1.89 |
|
2.94 |
|
Business Description
-
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. - Dedicated Transportation Solutions – Ryder's DTS business segment combines the best of Ryder's leasing and maintenance capabilities 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.
-
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 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.
For more information on
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 forecast; our outlook; our expectations regarding market trends and economic environment, such as rental demand, economic growth, challenging freight environment, weakening used vehicle sales and rental, and declining volumes in our omnichannel retail vertical; our expectations regarding the freight cycle, including timing and the impact of the freight cycle on our businesses; our expectations regarding total and operating revenue, earnings per share, comparable earnings per share, adjusted ROE, earnings before income tax, net cash from operating activities from continuing operations, debt-to-equity, capital expenditures, operating cash flow and free cash flow, and the causes of change; our ability to execute our balanced growth strategy; the impact of inflationary pressures, such as inflationary cost recovery; our expectations regarding commercial rental demand and utilization and used vehicle sales volume and pricing; our expectations regarding long-term profitable growth and secular growth trends; our expectations with respect to our actions to increase returns and create long-term value; our expectations regarding used vehicle inventory and fleet size; our ability to outperform prior cycles; our ability to support organic growth, including growing our contractual lease, dedicated, and supply chain businesses at targeted returns; our expectations regarding strategic investments and acquisitions, including the acquisitions of Cardinal Logistics and
All of our forward-looking statements should be evaluated by considering 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: changes in general economic and financial conditions in the
Note: Regarding Non-GAAP Financial Measures
This news release includes certain non-GAAP financial measures as defined under
CONFERENCE CALL AND WEBCAST INFORMATION
Ryder’s earnings conference call and webcast is scheduled for
LIVE AUDIO VIA PHONE
Toll Free Number: 888-394-8218
Audio Passcode: Ryder
Conference Leader:
WEBCAST REPLAY
An audio replay including the slide presentation will be available within four hours following the call. Click here then select Financials/Quarterly Results and the date.
ryder-financial
|
|||||||
CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED |
|||||||
|
|
Three months ended |
|||||
(In millions, except per share amounts) |
|
2024 |
|
2023 |
|||
Services revenue |
|
$ |
2,038 |
|
|
1,821 |
|
Lease & related maintenance and rental revenues |
|
|
936 |
|
|
979 |
|
Fuel services revenue |
|
|
124 |
|
|
152 |
|
Total revenues |
|
|
3,098 |
|
|
2,952 |
|
|
|
|
|
|
|||
Cost of services |
|
|
1,743 |
|
|
1,607 |
|
Cost of lease & related maintenance and rental |
|
|
669 |
|
|
674 |
|
Cost of fuel services |
|
|
121 |
|
|
149 |
|
Selling, general and administrative expenses |
|
|
378 |
|
|
363 |
|
Non-operating pension costs, net |
|
|
11 |
|
|
10 |
|
Used vehicle sales, net |
|
|
(20 |
) |
|
(72 |
) |
Interest expense |
|
|
92 |
|
|
65 |
|
Miscellaneous income, net |
|
|
(15 |
) |
|
(20 |
) |
Restructuring and other items, net |
|
|
5 |
|
|
(25 |
) |
|
|
|
2,984 |
|
|
2,751 |
|
|
|
|
|
|
|||
Earnings from continuing operations before income taxes |
|
|
114 |
|
|
201 |
|
Provision for income taxes |
|
|
29 |
|
|
61 |
|
Earnings from continuing operations |
|
|
85 |
|
|
140 |
|
Loss from discontinued operations, net of tax |
|
|
— |
|
|
(1 |
) |
Net earnings |
|
$ |
85 |
|
|
139 |
|
|
|
|
|
|
|||
Earnings (loss) per common share — Diluted |
|
|
|
|
|||
Continuing operations |
|
$ |
1.89 |
|
|
2.95 |
|
Discontinued operations |
|
|
— |
|
|
(0.01 |
) |
Net earnings |
|
$ |
1.89 |
|
|
2.94 |
|
|
|
|
|
|
|||
Weighted average common shares outstanding — Diluted |
|
|
45.0 |
|
|
47.5 |
|
|
|
|
|
|
|||
Diluted EPS from continuing operations |
|
$ |
1.89 |
|
|
2.95 |
|
Non-operating pension costs, net |
|
|
0.17 |
|
|
0.17 |
|
Acquisition costs |
|
|
0.09 |
|
|
— |
|
FMS |
|
|
— |
|
|
(0.30 |
) |
Other, net |
|
|
(0.01 |
) |
|
(0.01 |
) |
Comparable EPS from continuing operations (1) |
|
$ |
2.14 |
|
|
2.81 |
|
|
|
|
|
|
|||
(1) 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. |
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED |
|||||
(In millions) |
|
|
|
|
|
Assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
234 |
|
204 |
Other current assets |
|
|
2,172 |
|
2,061 |
Revenue earning equipment, net |
|
|
8,977 |
|
8,892 |
Operating property and equipment, net |
|
|
1,232 |
|
1,217 |
Other assets |
|
|
3,866 |
|
3,404 |
|
|
$ |
16,481 |
|
15,778 |
|
|
|
|
|
|
Liabilities and shareholders' equity: |
|
|
|
|
|
Current liabilities |
|
$ |
2,177 |
|
2,066 |
Total debt (including current portion) |
|
|
7,543 |
|
7,114 |
Other non-current liabilities (including deferred income taxes) |
|
|
3,696 |
|
3,529 |
Shareholders' equity |
|
|
3,065 |
|
3,069 |
|
|
$ |
16,481 |
|
15,778 |
SELECTED KEY RATIOS AND METRICS |
||||
|
|
|
|
|
Debt to equity |
|
246% |
|
232% |
|
|
Three months ended |
|||||
(In millions) |
|
2024 |
|
2023 |
|||
Comparable EBITDA (1) |
|
$ |
636 |
|
|
628 |
|
Effective interest rate |
|
|
5.0 |
% |
|
4.1 |
% |
|
|
Three months ended |
|||
(In millions) |
|
2024 |
|
2023 |
|
Net cash provided by operating activities from continuing operations |
|
$ |
526 |
|
478 |
Free cash flow (1) |
|
|
13 |
|
101 |
Capital expenditures paid |
|
|
686 |
|
641 |
Gross capital expenditures |
|
|
716 |
|
802 |
|
|
Twelve months ended |
||
|
|
2024 |
|
2023 |
Adjusted ROE (2) |
|
17% |
|
27% |
———————————— |
||||
(1) 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. |
||||
(2) The 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 shareholders' equity to adjusted average equity is provided in the Appendix - Non-GAAP Financial Measures section at the end of this release. |
||||
Note: Amounts may not be additive due to rounding. |
|
|||||||||
BUSINESS SEGMENT REVENUE AND EARNINGS - UNAUDITED |
|||||||||
|
|
Three months ended |
|||||||
(In millions) |
|
2024 |
|
2023 |
|
Change |
|||
Total Revenue: |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
ChoiceLease |
|
$ |
842 |
|
|
776 |
|
|
9% |
Commercial rental |
|
|
231 |
|
|
304 |
|
|
(24)% |
|
|
|
178 |
|
|
182 |
|
|
(2)% |
Fuel services revenue |
|
|
204 |
|
|
241 |
|
|
(15)% |
|
|
|
1,455 |
|
|
1,503 |
|
|
(3)% |
|
|
|
1,302 |
|
|
1,201 |
|
|
8% |
Dedicated Transportation Solutions |
|
|
563 |
|
|
454 |
|
|
24% |
Eliminations |
|
|
(222 |
) |
|
(206 |
) |
|
(8)% |
Total revenue |
|
$ |
3,098 |
|
|
2,952 |
|
|
5% |
|
|
|
|
|
|
|
|||
Operating Revenue: (1) |
|
|
|
|
|
|
|||
|
|
$ |
1,251 |
|
|
1,262 |
|
|
(1)% |
|
|
|
972 |
|
|
879 |
|
|
11% |
Dedicated Transportation Solutions |
|
|
427 |
|
|
322 |
|
|
33% |
Eliminations |
|
|
(155 |
) |
|
(117 |
) |
|
(32)% |
Operating revenue |
|
$ |
2,495 |
|
|
2,346 |
|
|
6% |
|
|
|
|
|
|
|
|||
Business Segment Earnings: |
|
|
|
|
|
|
|||
Earnings from continuing operations before income taxes: |
|
|
|
|
|
|
|||
|
|
$ |
100 |
|
|
182 |
|
|
(45)% |
|
|
|
64 |
|
|
17 |
|
|
267% |
Dedicated Transportation Solutions |
|
|
18 |
|
|
29 |
|
|
(38)% |
Eliminations |
|
|
(28 |
) |
|
(25 |
) |
|
19% |
|
|
|
154 |
|
|
203 |
|
|
(24)% |
|
|
|
(14 |
) |
|
(15 |
) |
|
(12)% |
Intangible amortization expense |
|
|
(11 |
) |
|
(9 |
) |
|
(27)% |
Non-operating pension costs, net |
|
|
(11 |
) |
|
(10 |
) |
|
2% |
Other items impacting comparability, net |
|
|
(4 |
) |
|
32 |
|
|
NM |
Earnings from continuing operations before income taxes |
|
|
114 |
|
|
201 |
|
|
(43)% |
Provision for income taxes |
|
|
29 |
|
|
61 |
|
|
(52)% |
Earnings from continuing operations |
|
$ |
85 |
|
|
140 |
|
|
(39)% |
———————————— |
|||||||||
(1) 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. |
|
|||||||||
BUSINESS SEGMENT REVENUE AND EARNINGS - UNAUDITED |
|||||||||
|
|
Three months ended |
|||||||
(In millions) |
|
2024 |
|
2023 |
|
Change |
|||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
FMS total revenue |
|
$ |
1,455 |
|
|
1,503 |
|
|
(3)% |
Fuel services revenue (1) |
|
|
(204 |
) |
|
(241 |
) |
|
(15)% |
FMS operating revenue (2) |
|
$ |
1,251 |
|
|
1,262 |
|
|
(1)% |
|
|
|
|
|
|
|
|||
Segment earnings before income taxes |
|
$ |
100 |
|
|
182 |
|
|
(45)% |
|
|
|
|
|
|
|
|||
FMS earnings before income taxes as % of FMS total revenue |
|
6.9% |
|
12.1% |
|
|
|||
|
|
|
|
|
|
|
|||
FMS earnings before income taxes as % of FMS operating revenue (2) |
|
8.0% |
|
14.4% |
|
|
|||
|
|
|
|
|
|
|
|||
|
|
Three months ended |
|||||||
|
|
2024 |
|
2023 |
|
Change |
|||
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
SCS total revenue |
|
$ |
1,302 |
|
|
1,201 |
|
|
8% |
Subcontracted transportation and fuel |
|
|
(330 |
) |
|
(322 |
) |
|
3% |
SCS operating revenue (2) |
|
$ |
972 |
|
|
879 |
|
|
11% |
|
|
|
|
|
|
|
|||
Segment earnings before income taxes |
|
$ |
64 |
|
|
17 |
|
|
267% |
|
|
|
|
|
|
|
|||
SCS earnings before income taxes as % of SCS total revenue |
|
4.9% |
|
1.4% |
|
|
|||
|
|
|
|
|
|
|
|||
SCS earnings before income taxes as % of SCS operating revenue (2) |
|
6.6% |
|
1.9% |
|
|
|||
|
|
|
|
|
|
|
|||
|
|
Three months ended |
|||||||
|
|
2024 |
|
2023 |
|
Change |
|||
Dedicated Transportation Solutions |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
DTS total revenue |
|
$ |
563 |
|
|
454 |
|
|
24% |
Subcontracted transportation and fuel |
|
|
(136 |
) |
|
(132 |
) |
|
3% |
DTS operating revenue (2) |
|
$ |
427 |
|
|
322 |
|
|
33% |
|
|
|
|
|
|
|
|||
Segment earnings before income taxes |
|
$ |
18 |
|
|
29 |
|
|
(38)% |
|
|
|
|
|
|
|
|||
DTS earnings before income taxes as % of DTS total revenue |
|
3.2% |
|
6.4% |
|
|
|||
|
|
|
|
|
|
|
|||
DTS earnings before income taxes as % of DTS operating revenue (2) |
|
4.2% |
|
9.0% |
|
|
|||
———————————— |
|||||||||
(1) Includes intercompany fuel sales from FMS to SCS and DTS. |
|||||||||
(2) Non-GAAP financial measure. A reconciliation of (1) GAAP total revenue to operating revenue for each business segment ( |
|||||||||
Note: Amounts may not be additive due to rounding. |
|
||||||||
BUSINESS SEGMENT INFORMATION - UNAUDITED |
||||||||
KEY PERFORMANCE INDICATORS |
||||||||
Our |
||||||||
|
|
Three months ended |
|
2024/2023 |
||||
|
|
2024 |
|
2023 |
|
Three
|
||
ChoiceLease |
|
|
|
|
|
|
||
Average fleet count |
|
143,200 |
|
|
135,300 |
|
|
6% |
End of period fleet count |
|
147,100 |
|
|
136,600 |
|
|
8% |
Average active fleet count (1) |
|
134,400 |
|
|
128,700 |
|
|
4% |
End of period active fleet count (1) |
|
138,500 |
|
|
129,100 |
|
|
7% |
|
|
|
|
|
|
|
||
Commercial rental |
|
|
|
|
|
|
||
Average fleet count |
|
35,700 |
|
|
41,200 |
|
|
(13)% |
End of period fleet count |
|
35,400 |
|
|
41,100 |
|
|
(14)% |
Rental utilization - power units (2) |
|
66 |
% |
|
75 |
% |
|
(900)bps |
Rental rate change - % (3) |
|
(1 |
)% |
|
3 |
% |
|
|
|
|
|
|
|
|
|
||
Customer vehicles under |
|
|
|
|
|
|
||
Average fleet count |
|
51,300 |
|
|
54,100 |
|
|
(5)% |
End of period fleet count |
|
51,100 |
|
|
52,600 |
|
|
(3)% |
|
|
|
|
|
|
|
||
Customer vehicles under SCS contracts |
|
|
|
|
|
|
||
End of period fleet count (4) |
|
14,400 |
|
|
13,500 |
|
|
7% |
|
|
|
|
|
|
|
||
Customer vehicles under DTS contracts |
|
|
|
|
|
|
||
End of period fleet count (4) |
|
20,400 |
|
|
11,400 |
|
|
79% |
|
|
|
|
|
|
|
||
Used vehicle sales (UVS) |
|
|
|
|
|
|
||
End of period fleet count |
|
8,900 |
|
|
5,100 |
|
|
75% |
Used vehicles sold |
|
6,500 |
|
|
5,100 |
|
|
27% |
UVS pricing change (5) |
|
|
|
|
|
|
||
Tractors |
|
(34 |
)% |
|
(35 |
)% |
|
|
Trucks |
|
(30 |
)% |
|
(16 |
)% |
|
|
———————————— |
|
|||||||
(1) Active fleet count is calculated as those units currently earning revenue and not classified as not yet earning or no longer earning units. |
||||||||
(2) Rental utilization is calculated using the number of days units are rented divided by the number of days units available to rent based on the days in a calendar year (excluding trailers). |
||||||||
(3) Represents percentage change compared to prior year period in average rental rate per day on power units using constant currency. |
||||||||
(4) These vehicle counts are also included within the fleet counts for ChoiceLease, Commercial rental and |
||||||||
(5) Represents percentage change compared to prior year period in average sales proceeds on used vehicle sales using constant currency. |
|
||
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED |
||
This press release and accompanying tables include “non-GAAP financial measures” as defined by |
||
Specifically, the following non-GAAP financial measures are included in this press release: |
||
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 |
SCS Operating Revenue |
SCS Total Revenue |
|
DTS Operating Revenue |
DTS Total Revenue |
|
Operating Revenue Growth |
Total Revenue Growth |
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 |
SCS EBT as a % of SCS Operating Revenue |
SCS EBT as a % of SCS Total Revenue |
|
DTS EBT as a % of DTS Operating Revenue |
DTS EBT as a % of DTS Total Revenue |
|
Comparable Earnings Measures: |
||
Comparable Earnings Before Income Tax and Comparable Tax Rate |
Earnings Before Income Tax and Effective Tax Rate from Continuing Operations |
Appendix - Non-GAAP Financial Measure Reconciliations |
Comparable Earnings |
Earnings from Continuing Operations |
Appendix - Non-GAAP Financial Measure Reconciliations |
Comparable EPS |
EPS from Continuing Operations |
Condensed Consolidated Statements of Earnings - Unaudited
Appendix - Non-GAAP Financial Measure Reconciliations |
Adjusted Return on Equity (ROE) |
Not Applicable. However, the 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 shareholders' equity to adjusted average equity is provided in the following reconciliations. |
Appendix - Non-GAAP Financial Measure Reconciliations |
Comparable Earnings Before Interest, Taxes, Depreciation and Amortization |
Net Earnings |
Appendix - Non-GAAP Financial Measure Reconciliations |
Cash Flow Measures: |
||
Total Cash Generated and Free Cash Flow |
Cash Provided by Operating Activities from Continuing Operations |
Appendix - Non-GAAP Financial Measure Reconciliations |
|
|
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED |
|
Set forth in the table below is an overview of each non-GAAP financial measure and why management believes that presentation of each non-GAAP financial measure provides useful information to investors. See reconciliations for each of these measures following this table. |
|
Operating Revenue Measures: |
|
Operating Revenue
FMS Operating Revenue
SCS Operating Revenue
DTS Operating Revenue
Operating Revenue Growth
FMS EBT as a % of FMS Operating Revenue
SCS EBT as a % of SCS Operating Revenue
DTS EBT as a % of DTS Operating Revenue
|
Operating revenue
is defined as total revenue for Ryder or each business segment (
Fuel: We exclude
Subcontracted transportation: We exclude subcontracted transportation from the calculation of our operating revenue measures, as these services are also typically a pass-through to our customers and, therefore, fluctuations result in minimal changes to our profitability. While our SCS and DTS business segments subcontract certain transportation services to third party providers, our FMS business segment does not engage in subcontracted transportation and, therefore, this item is not applicable to FMS. |
Comparable Earnings Measures: |
|
Comparable Earnings before Income Taxes (EBT)
Comparable Earnings
Comparable Earnings per Diluted Common Share (EPS)
Comparable Tax Rate
Adjusted Return on Equity (ROE)
|
Comparable EBT, Comparable Earnings and Comparable EPS are defined, respectively, as GAAP EBT, earnings and EPS, all from continuing operations, excluding (1) non-operating pension costs, net and (2) other items impacting comparability (as further described below). We believe these non-GAAP measures provide useful information to investors and allow for better year-over-year comparison of operating performance.
Non-operating pension costs, net: Our comparable earnings measures exclude non-operating pension costs, net, which include the amortization of net actuarial loss and prior service cost, interest cost and expected return on plan assets components of pension and postretirement benefit costs, as well as any significant charges for settlements or curtailments if recognized. We exclude non-operating pension costs, net because we consider these to be impacted by financial market performance and outside the operational performance of our business.
Other Items Impacting Comparability: Our comparable and adjusted earnings measures also exclude other significant items that are not representative of our business operations and vary from period to period.
Comparable Tax Rate 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 marginal tax rates to which the non-GAAP adjustments are related.
Adjusted ROE is defined as adjusted net earnings divided by adjusted average shareholders' equity and represents the rate of return on shareholders' investment. Other items impacting comparability described above are excluded, as applicable, from the calculation of adjusted net earnings and adjusted average shareholders' equity. We also exclude any significant charges for pension settlements or curtailments from the calculation of adjusted net earnings. We use adjusted ROE as an internal measure of how effectively we use the owned capital invested in our operations. |
Comparable Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) |
Comparable EBITDA is defined as net earnings, first adjusted to exclude discontinued operations and the following items, all from continuing operations: (1) non-operating pension costs, net and (2) any other items that are not representative of our business operations (these items are the same items that are excluded from comparable earnings measures for the relevant periods as described immediately above) and then adjusted further for (1) interest expense, (2) income taxes, (3) depreciation, (4) used vehicle sales results and (5) amortization.
We believe comparable EBITDA provides investors with useful information, as it is a standard measure commonly reported and widely used by investors and other interested parties to measure financial performance and our ability to service debt and meet our payment obligations. We believe that the inclusion of comparable EBITDA also provides consistency in financial reporting and aids investors in performing meaningful comparisons of past, present and future operating results. Our presentation of comparable EBITDA may not be comparable to similarly-titled measures used by other companies.
Comparable EBITDA should not be considered a substitute for, or superior to, the measures of financial performance determined in accordance with GAAP. |
Cash Flow Measures: |
|
Total Cash Generated
Free Cash Flow
|
We consider total cash generated and free cash flow to be important measures of comparative operating performance, as our principal sources of operating liquidity are cash from operations and proceeds from the sale of revenue earning equipment.
Total Cash Generated is defined as the sum of (1) net cash provided by operating activities, (2) net cash provided by the sale of revenue earning equipment, (3) net cash provided by the sale of operating property and equipment and (4) other cash inflows from investing activities. We believe total cash generated is an important measure of total cash flows generated from our ongoing business activities.
Free Cash Flow is defined as the net amount of cash generated from operating activities and investing activities (excluding acquisitions) from continuing operations. We calculate free cash flow as the sum of (1) net cash provided by operating activities, (2) net cash provided by the sale of revenue earning equipment and operating property and equipment, and (3) other cash inflows from investing activities, less (4) purchases of property and revenue earning equipment. We believe free cash flow provides investors with an important perspective on the cash available for debt service and for shareholders, after making capital investments required to support ongoing business operations. Our calculation of free cash flow may be different from the calculation used by other companies and, therefore, comparability may be limited. |
|
|||||||
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED |
|||||||
OPERATING REVENUE RECONCILIATION |
|||||||
|
|
Three months ended |
|||||
(In millions) |
|
2024 |
|
2023 |
|||
Total revenue |
|
$ |
3,098 |
|
|
2,952 |
|
Subcontracted transportation and fuel |
|
|
(603 |
) |
|
(606 |
) |
Operating revenue (1) |
|
$ |
2,495 |
|
|
2,346 |
|
TOTAL CASH GENERATED / FREE CASH FLOW RECONCILIATION |
|||||||
|
|
Three months ended |
|||||
(In millions) |
|
2024 |
|
2023 |
|||
Net cash provided by operating activities from continuing operations |
|
$ |
526 |
|
|
478 |
|
Proceeds from sales (primarily revenue earning equipment) (2) |
|
|
173 |
|
|
264 |
|
Total cash generated (1) |
|
|
699 |
|
|
742 |
|
Purchases of property and revenue earning equipment (2) |
|
|
(686 |
) |
|
(641 |
) |
Free cash flow (1) |
|
$ |
13 |
|
|
101 |
|
———————————— |
|||||||
(1) Non-GAAP financial measure. |
|||||||
(2) Included in cash flows from investing activities |
|||||||
Note: Amounts may not be additive due to rounding. |
COMPARABLE EARNINGS RECONCILIATION |
|||||||
|
|
Three months ended |
|||||
(In millions) |
|
2024 |
|
2023 |
|||
Earnings from continuing operations |
|
$ |
85 |
|
|
140 |
|
Non-operating pension costs, net |
|
|
7 |
|
|
8 |
|
Acquisition costs |
|
|
4 |
|
|
— |
|
FMS |
|
|
— |
|
|
(14 |
) |
Other, net |
|
|
— |
|
|
(1 |
) |
Comparable earnings from continuing operations (2), (3) |
|
$ |
96 |
|
|
133 |
|
|
|
|
|
|
|||
Tax rate on continuing operations |
|
25.4% |
|
30.5% |
|||
Tax adjustments and income tax effects of non-GAAP adjustments (2) |
|
(0.2)% |
|
(5.0)% |
|||
Comparable tax rate on continuing operations (3) |
|
25.2% |
|
25.5% |
|||
———————————— |
|||||||
(1) Primarily includes commercial claims proceeds. |
|||||||
(2) 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 marginal tax rates to which the non-GAAP adjustments are related. |
|||||||
(3) Non-GAAP financial measure. |
|||||||
Note: Amounts may not be additive due to rounding. |
|
|||||||
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED |
|||||||
ADJUSTED RETURN ON EQUITY RECONCILIATION |
|||||||
|
|
Twelve months ended |
|||||
(Dollars in millions) |
|
2024 |
|
2023 |
|||
Net earnings |
|
$ |
351 |
|
|
832 |
|
Other items impacting comparability |
|
|
193 |
|
|
(121 |
) |
Tax impact (1) |
|
|
(11 |
) |
|
59 |
|
Adjusted net earnings |
|
$ |
533 |
|
|
770 |
|
|
|
|
|
|
|||
Average shareholders' equity |
|
$ |
3,067 |
|
|
2,887 |
|
Average adjustments to shareholders' equity (2) |
|
|
(11 |
) |
|
(15 |
) |
Adjusted average shareholders' equity |
|
$ |
3,056 |
|
|
2,872 |
|
|
|
|
|
|
|||
Adjusted return on equity (3) |
|
17% |
|
27% |
|||
———————————— |
|||||||
(1) Represents income taxes on other items impacting comparability. |
|||||||
(2) Represents the impact of other items impacting comparability, net of tax, to equity for the respective periods. |
|||||||
(3) Adjusted return on equity is calculated by dividing Adjusted net earnings into Adjusted average shareholders' equity. |
|
|||||||
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED |
|||||||
COMPARABLE EARNINGS BEFORE INCOME TAXES / COMPARABLE EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION RECONCILIATION | |||||||
|
|
Three months ended |
|||||
(In millions) |
|
2024 |
|
2023 |
|||
Net earnings |
|
$ |
85 |
|
|
139 |
|
Loss from discontinued operations, net of tax |
|
|
— |
|
|
1 |
|
Provision for income taxes |
|
|
29 |
|
|
61 |
|
EBT |
|
|
114 |
|
|
201 |
|
Non-operating pension costs, net |
|
|
11 |
|
|
10 |
|
Acquisition costs |
|
|
5 |
|
|
— |
|
FMS |
|
|
— |
|
|
(31 |
) |
Other, net |
|
|
(1 |
) |
|
(1 |
) |
Comparable EBT (2) |
|
|
129 |
|
|
179 |
|
Interest expense |
|
|
92 |
|
|
65 |
|
Depreciation |
|
|
424 |
|
|
445 |
|
Used vehicle sales, net |
|
|
(20 |
) |
|
(70 |
) |
Amortization |
|
|
11 |
|
|
9 |
|
Comparable EBITDA |
|
$ |
636 |
|
|
628 |
|
———————————— |
|||||||
(1) Primarily includes net commercial claims proceeds. |
|||||||
(2) Non-GAAP financial measure. Non-GAAP elements of the calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of earnings before income taxes from continuing operations to comparable earnings before income taxes from continuing operations is set forth in this table. |
|||||||
Note: Amounts may not be additive due to rounding. |
|
|||||||||
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED |
|||||||||
OPERATING REVENUE GROWTH FORECAST RECONCILIATION |
|||||||||
|
|
|
|
|
|
|
|||
(In millions) |
|
Twelve months ended |
|||||||
|
|
2024 |
|
2023 |
|
Change |
|||
Total revenue |
|
$ |
13,000 |
|
|
11,783 |
|
|
10% |
Subcontracted transportation and fuel |
|
|
(2,600 |
) |
|
(2,286 |
) |
|
14% |
Operating revenue (1) |
|
$ |
10,400 |
|
|
9,497 |
|
|
10% |
COMPARABLE EARNINGS PER SHARE FORECAST RECONCILIATION |
|||||
|
|
|
|
|
|
(In millions, except per share amounts) |
|
Second Quarter 2024 |
|
Full Year 2024 |
|
EPS from continuing operations |
|
|
|
|
|
Non-operating pension costs |
|
0.19 |
|
|
0.74 |
Restructuring and other, net |
|
(0.02 |
) |
|
0.05 |
Comparable EPS from continuing operations forecast (1) |
|
|
|
|
TOTAL CASH GENERATED / FREE CASH FLOW FORECAST RECONCILIATION |
||||
|
|
|
||
(In millions) |
|
2024 Forecast |
||
Net cash provided by operating activities from continuing operations |
|
$ |
2,400 |
|
Proceeds from sales (primarily revenue earning equipment) (2) |
|
|
600 |
|
Total cash generated (1) |
|
|
3,000 |
|
|
|
|
||
Purchases of property and revenue earning equipment (2) (3) |
|
|
(3,225 |
) |
Free cash flow (1) |
|
$ |
(225 |
) |
———————————— |
||||
(1) Non-GAAP financial measure. |
||||
(2) Included in cash flows from investing activities. |
||||
(3) Amount updated to correct typographical error. |
|
||||
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED |
||||
ADJUSTED RETURN ON EQUITY FORECAST RECONCILIATION |
||||
|
|
|
||
(In millions) |
|
2024 Forecast |
||
Net earnings |
|
$ |
495 |
|
Other items impacting comparability (1) |
|
|
5 |
|
Tax impact (2) |
|
|
(5 |
) |
Adjusted net earnings for ROE (numerator) (3) [A] |
|
$ |
495 |
|
|
|
|
||
Average shareholders' equity |
|
$ |
3,100 |
|
Adjustment to equity (4) |
|
|
— |
|
Adjusted average total equity (denominator) (3) [B] |
|
$ |
3,100 |
|
|
|
|
||
Adjusted return on equity (3) [A]/[B] |
|
|
16 |
% |
———————————— |
||||
(1) Forecasted other items impacting comparability includes other, net of |
||||
(2) Represents the tax provision on other items impacting comparability. |
||||
(3) 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 shareholders' equity to adjusted average total equity set forth in this table. |
||||
(4) Represents the impact to equity of items to arrive at adjusted earnings. |
||||
Note: Amounts may not be additive due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240423661437/en/
Media:
afederman@ryder.com
Investor Relations:
ccandela@ryder.com
Source: