Third Quarter 2022
- GAAP EPS from continuing operations of $4.82 versus $2.58 in
prior year due to higher earnings in all three business
segments
- Comparable EPS (non-GAAP) from continuing operations of $4.45
versus $2.55 in prior year
- Total revenue of $3.0 billion and operating revenue (non-GAAP)
of $2.3 billion, up 23% and 18%, respectively, reflecting organic
revenue growth in all business segments and SCS acquisitions
Full-Year 2022 Forecast
- Increased GAAP EPS forecast to $16.40 - $16.60 from $14.45 -
$14.95
- Increased comparable EPS (non-GAAP) forecast to $15.65 - $15.85
from $14.30 - $14.80
- Adjusted ROE (ROE) forecast increased to 26% - 27% from 25% -
26%
- Net cash provided by operating activities from continuing
operations forecast of $2.3 billion; free cash flow (non-GAAP)
forecast of $800 million - $900 million, up from $750 - $850
million
Ryder System, Inc. (NYSE: R), a leader in supply chain,
dedicated transportation, and fleet management solutions, reported
results for the three months ended September 30 as follows:
This press release features multimedia. View
the full release here:
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Ryder is a leader in supply chain,
dedicated transportation, and fleet management solutions. (Photo:
Business Wire)
(In millions, except EPS)
Earnings Before
Taxes
Earnings
Diluted Earnings Per
Share
2022
2021
2022
2021
2022
2021
Continuing operations (GAAP)
$
334.2
183.2
$
246.4
138.7
$
4.82
2.58
Comparable (non-GAAP)
$
308.4
181.8
$
227.3
137.5
$
4.45
2.55
Total and operating revenue for the three months ended September
30 were as follows:
(In millions)
Total Revenue
Operating Revenue
(non-GAAP)
2022
2021
Change
2022
2021
Change
Total
$
3,035
2,459
23
%
$
2,347
1,983
18
%
Fleet Management Solutions (FMS)
$
1,582
1,436
10
%
$
1,303
1,248
4
%
Supply Chain Solutions (SCS)
$
1,207
802
50
%
$
835
559
49
%
Dedicated Transportation Solutions
(DTS)
$
454
380
19
%
$
317
272
17
%
CEO Comment
Commenting on the company's results and outlook, Ryder Chairman
and CEO Robert Sanchez says, "Record third-quarter earnings
reflects growth in all three business segments. Earnings exceeded
our most recent forecast due primarily to better than expected
results in used vehicle sales and rental. Strong ROE of 30%
reflected ongoing truck capacity constraints in the market and
benefits from our initiatives to increase long-term returns. We
continued to see strong sales momentum and realized record
multi-year contractual sales year-to-date, positioning us well for
future revenue growth.
"We executed on our initiatives and returned to high
single-digit earnings targets in both supply chain and dedicated,
resulting in approximately 190% and 150% segment earnings growth
respectively. This improvement reflects pricing adjustments to
address unusually high labor cost increases that began in 2021 and
benefits from profitable new business. We expect SCS and DTS
results to continue to benefit from these actions going
forward.
"Accelerating growth in SCS and DTS is a key driver of our
strategy to create long-term shareholder value. Our recent
acquisitions in fast-growing e-commerce fulfillment and multiclient
warehousing continue to contribute to earnings growth in SCS.
Consistent with our strategy to drive growth by bringing new
technology-driven solutions to market, we recently announced the
acquisition of Baton, a startup tech firm which we initially
invested in through RyderVentures, our corporate venture capital
fund. We are excited about the value the Baton team can create for
Ryder customers as we build out a new suite of products that focus
on optimizing transportation and supply chain networks.
"In FMS, used vehicle sales and rental performance contributed
to strong results again this quarter. As anticipated, used truck
and tractor pricing declined sequentially in the quarter and we
continued to realize substantial used vehicle gains as prices
remain well above our residual value estimates. Rental demand and
pricing conditions remain robust and we have yet to see softening
trends in the rental market. Our lease pricing initiative continues
to deliver improved results, and we anticipate incremental earnings
from this initiative as the remaining half of our lease portfolio
is renewed at higher returns. Despite ongoing OEM delays, our North
American lease fleet returned to growth at the end of the quarter.
We continue to expect our year-end lease fleet to be up by
approximately 2,000 vehicles, which will contribute primarily to
earnings in 2023.
"Looking ahead, we've increased our 2022 ROE and comparable EPS
forecasts to reflect improved rental and used vehicle sales
performance and we remain confident in our outlook for continued
strong core earnings. We have increased our most recent free cash
flow forecast for full year 2022 to $800 - $900 million due to
higher proceeds from used vehicle sales.
"Our strong balance sheet enables us to pursue targeted
acquisitions and return capital to shareholders. We completed our
$300 million accelerated share repurchase program in September 2022
and have existing authorization for an additional 2-million-share
discretionary program and a 2.5-million-share anti-dilutive
program.
"During the quarter, we released our latest Corporate
Sustainability Report. We were proud to share that as a result of
our initiatives to reduce our environmental footprint through
efficiency and innovation, we achieved our emissions reduction
targets well ahead of schedule."
Outlook Updates
Full
Year 2022
Total Revenue Growth
~23%
Operating Revenue Growth (non-GAAP)
~18%
FY22 GAAP EPS
$16.40 - $16.60
FY22 Comparable EPS (non-GAAP)
$15.65 - $15.85
ROE (1)
26% - 27%
Net Cash from Operating Activities from
Continuing Operations
~$2.3B
Free Cash Flow (non-GAAP)
$800M - $900M
Fourth
Quarter 2022
4Q22 GAAP EPS
$3.53 - $3.73
4Q22 Comparable EPS (non-GAAP)
$3.18 - $3.38
————————————
(1) 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 ROE is provided in
the Appendix - Non-GAAP Financial Measures at the end of this
release.
Third Quarter Business Segment Operating
Results
Fleet Management Solutions: Higher Earnings Driven by Used
Vehicle Sales and Rental Results
(In millions)
3Q22
3Q21
Change
Total Revenue
$
1,582
1,436
10%
Operating Revenue (1)
$
1,303
1,248
4%
Earnings Before Tax (EBT)
$
265
186
42%
FMS EBT as a % of FMS total revenue
16.8%
13.0%
380 bps
FMS EBT as a % of FMS operating revenue
(1)
20.4%
14.9%
550 bps
Rolling 12-months EBT as % of total and
operating revenue
3Q22
3Q21
Change
FMS EBT as a % of FMS total revenue
16.9%
8.5%
840 bps
FMS EBT as a % of FMS operating revenue
(1)
20.3%
9.7%
1,060 bps
(1) Non-GAAP financial measure excluding
fuel and lease liability insurance revenue.
Fleet Management Solutions (FMS) total and operating revenue
increased due to higher rental revenue driven by higher pricing and
demand. Total revenue also increased due to higher fuel prices
passed through to customers. FMS operating revenue increased
globally despite a 4% negative impact from the wind down of the UK
business.
FMS EBT increased by $79 million primarily from higher used
vehicle sales and rental results reflecting benefits from tight
truck capacity and initiatives to improve returns in these areas.
Increased gains on used vehicles sold and a declining impact of
depreciation expense from prior vehicle residual value estimate
changes contributed $55 million in higher year-over-year earnings.
Used vehicle pricing increased from the prior year for both trucks
and tractors. Sequentially from the second quarter of 2022, used
truck and tractor pricing decreased 11% and 22%, respectively. Used
vehicle inventory levels increased sequentially to 4,700 vehicles
but remains below the company's long-term target range of 7,000 -
9,000 vehicles. Rental results benefited from a 7% increase in
power-fleet pricing and strong power-fleet utilization of 83% on a
larger fleet. FMS EBT as a percentage of FMS operating revenue is
well above the company's long-term target of low double-digits for
the third quarter and for the trailing 12-month period.
Supply Chain Solutions: Higher Earnings Reflect Increased
Pricing and New Business
(In millions)
3Q22
3Q21
Change
Total Revenue
$
1,207
802
50%
Operating Revenue (1)
$
835
559
49%
Earnings Before Tax (EBT)
$
64
22
189%
EBT as a % of total revenue
5.3%
2.8%
250 bps
EBT as a % of operating revenue (1)
7.7%
4.0%
370 bps
Rolling 12-months EBT as % of total and
operating revenue
3Q22
3Q21
Change
EBT as a % of total revenue
4.0%
4.3%
(30) bps
EBT as a % of operating revenue (1)
5.8%
6.2%
(40) bps
(1) Non-GAAP financial measure excluding
fuel and subcontracted transportation.
Supply Chain Solutions (SCS) total and operating revenue
increased due to acquisitions and double-digit organic revenue
growth in all industry verticals reflecting higher volumes, new
business, and increased pricing. Higher volumes include the
prior-year impact of automotive supply chain disruptions. Operating
revenue grew 23% organically year-over-year.
SCS EBT increased primarily due to higher pricing and
cost-recovery initiatives as well as new business. EBT comparisons
also benefited from the impact of automotive supply chain
disruptions in the prior year and acquisitions. SCS EBT as a
percentage of SCS operating revenue is in line with the company's
long-term target of high single-digits for the third quarter 2022
but below target for the trailing 12-month period.
Dedicated Transportation Solutions: Higher Earnings Primarily
Driven by Increased Pricing
(In millions)
3Q22
3Q21
Change
Total Revenue
$
454
380
19%
Operating Revenue (1)
$
317
272
17%
Earnings Before Tax (EBT)
$
28
11
149%
EBT as a % of total revenue
6.2%
3.0%
320 bps
EBT as a % of operating revenue (1)
8.9%
4.2%
470 bps
Rolling 12-months EBT as % of total and
operating revenue
3Q22
3Q21
Change
EBT as a % of total revenue
4.8%
3.9%
90 bps
EBT as a % of operating revenue (1)
6.9%
5.3%
160 bps
(1) Non-GAAP financial measure excluding
fuel and subcontracted transportation.
Dedicated Transportation Solutions (DTS) total and operating
revenue increased due to higher pricing, increased volumes, and new
business.
DTS EBT increased primarily due to higher pricing as well as new
business. DTS EBT as a percentage of DTS operating revenue is in
line with the company's long-term target of high single-digits for
the third quarter 2022 but below target for the trailing 12-month
period.
Corporate Financial Information
Unallocated Central Support Services (CSS)
Unallocated CSS costs were $21 million as compared to $17
million in the prior year, primarily reflecting increased
incentive-based compensation costs and professional fees.
Income Taxes
Our effective income tax rate from continuing operations was
26.3% as compared to 24.3% in the prior year due to incremental
U.S. tax on higher foreign earnings related to the exit of our UK
FMS business as well as a shift in the mix of earnings subject to
tax in different jurisdictions.
Capital Expenditures, Cash Flow, and Leverage
Year-to-date capital expenditures increased to $2.0 billion in
2022 compared to $1.5 billion in 2021 due to higher planned
investments in the lease fleet.
Year-to-date net cash provided by operating activities from
continuing operations increased to $1.8 billion as compared to $1.7
billion in the prior year, reflecting higher earnings partially
offset by higher working capital needs. Free cash flow (a non-GAAP
measure) was $887 million, up from $829 million in 2021, primarily
due to higher proceeds from the sale of revenue-earning equipment,
partially offset by an increase in capital expenditures. Full-year
2022 free cash flow forecast increased by $50 million to $800
million - $900 million. This includes $200 million of capital
expenditures deferred into 2023 related to OEM vehicle delivery
delays and $350 million of expected proceeds from the exit of the
UK business.
Debt-to-equity as of September 30, 2022 decreased to 210% from
235% at year-end 2021 and is below the company's long-term target
of 250% - 300%.
Share Repurchase Programs
Ryder completed its $300 million accelerated share repurchase
program in September 2022. Under this program, a total of 4 million
shares were repurchased and retired at an average price of $74.47
per share. Board authorization exists for a 2-million-share
discretionary program and a 2.5-million-share anti-dilutive
program.
Fleet Management Solutions UK Business Update
The company continues to make significant progress in exiting
the lower-return UK business and remains on track to complete the
process by mid-2023. Since the beginning of 2022, Ryder has sold
approximately 75% of the UK vehicles and properties, generating
proceeds of $326 million.
Supplemental Company Information
Third Quarter Net Earnings
(In millions, except EPS)
Earnings
Diluted EPS
2022
2021
2022
2021
Earnings from continuing operations
$
246.4
138.7
$
4.82
2.58
Discontinued operations
(0.4
)
(0.6
)
(0.01
)
(0.01
)
Net earnings
$
246.0
138.1
$
4.82
2.57
Year-to-Date Operating Results
(In millions, except EPS)
Nine months ended September
30,
2022
2021
Change
Total revenue
$
8,923.0
7,062.9
26
%
Operating revenue (non-GAAP)
$
6,869.6
5,723.0
20
%
Earnings from continuing operations
$
662.6
339.8
95
%
Comparable earnings from continuing
operations (non-GAAP)
$
641.2
324.8
97
%
Net earnings
$
661.0
338.0
96
%
Earnings per common share (EPS) -
Diluted
Continuing operations
$
12.86
6.33
103
%
Comparable (non-GAAP)
$
12.44
6.05
106
%
Net earnings
$
12.82
6.30
103
%
Business Description
Ryder System, Inc. is a leading supply chain, dedicated
transportation, and fleet management solutions company. Ryder’s
stock (NYSE: R) is a component of the Dow Jones Transportation
Average and the S&P MidCap 400® index. The company’s financial
performance is reported in the following three, inter-related
business segments:
- 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 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.
- 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 Ryder System, Inc., visit
investors.ryder.com and 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 forecast,
expectations regarding market trends and economic environment;
impact of supply chain and labor shortage challenges and vehicle
production constraints on our business, market conditions,
e-commerce trends, freight environment, expected earnings,
depreciation, commercial rental demand and utilization, and used
vehicle sales volume and pricing; expectations related to our
strategic investments and initiatives, including our recent supply
chain acquisitions and initiatives related to maintenance costs
savings and improving returns; expected benefits of lease pricing
initiatives and our ability to renew leases; our expectations
regarding benefits from our accelerated share repurchase program;
our expectations related to timeline and cash proceeds from our
exit of the FMS U.K. market; our ability to execute our strategy of
accelerating growth in certain business segments; performance,
including sales and revenue growth, in our product lines and
segments, for example e-commerce and multi-client warehousing;
residual values and depreciation expense; used vehicle inventory;
earnings; free cash flow; tax rate; operating cash flow; capital
expenditures; fleet growth; and expected benefits from new
contracts and pricing initiatives in our supply chain and dedicated
business divisions. Our forward-looking statements also include our
estimates of the impact of our changes to residual value estimates
on earnings and depreciation expense. The expected impact of the
change in residual value estimates is based on our current
assessment of the residual values and useful lives of
revenue-earning equipment based on multi-year trends and our
outlook for the expected near- and long-term used vehicle market. A
variety of factors, many of which are outside of our control, could
cause residual value estimates to differ from actual used vehicle
sales pricing, such as changes in supply and demand of used
vehicles; volatility in market conditions; changes in vehicle
technology; competitor pricing; regulatory requirements; driver
shortages; customer requirements and preferences; and changes in
underlying assumption factors.
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, the effect of
the COVID-19 pandemic and future variants, including ongoing supply
chain and labor challenges and vehicle production constraints; the
effect of geopolitical events, including the impact of the conflict
between Russia and Ukraine; our ability to adapt to changing market
conditions, including lower than expected contractual sales,
decreases in commercial rental demand or utilization, poor
acceptance of rental pricing, and declining market demand for or
excess supply of used vehicles impacting current or estimated
pricing and our anticipated proportion of retail versus wholesale
sales; declining customer demand for our services; higher than
expected maintenance costs; lower than expected benefits from our
cost-savings initiatives; our ability to effectively and
efficiently integrate acquisitions into our business; lower than
expected benefits from our sales, marketing and new product
initiatives; setbacks in the economic market or in our ability to
retain profitable customer accounts; impact of changing laws and
regulations; difficulty in obtaining adequate profit margins for
our services; inability to maintain current pricing levels due to
soft economic conditions, business interruptions or expenditures
due to labor disputes, severe weather or natural occurrences;
competition from other service providers, changes in technology and
new entrants; driver and technician shortages resulting in higher
procurement costs and turnover rates; impact of worldwide
semiconductor shortage; higher than expected bad debt reserves or
write-offs; decrease in credit ratings; increased debt costs;
adequacy of accounting estimates; higher than expected reserves and
accruals particularly with respect to pension, taxes, insurance and
revenue; impact of changes in our residual value estimates and
accounting policies; unanticipated changes in fuel prices;
unanticipated currency exchange rate fluctuations; increases in
inflation or interest rates; our ability to manage our cost
structure; and the risks described in our filings with the
Securities and Exchange Commission (SEC). 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. 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 and
why management believes that presentation of each measure provides
useful information to investors. 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 October 26, 2022 at 11:00 a.m. ET. To
join, click here.
LIVE AUDIO VIA PHONE
Toll Free Number:
888-352-6803
USA Toll Number:
323-701-0225
Audio Passcode:
Ryder
Conference Leader:
Bob Brunn
WEBCAST REPLAY VIA INTERNET
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.
AUDIO REPLAY VIA MP3 DOWNLOAD
A podcast will be available within 24
hours after the end of the call. Click here then select
Financials/Quarterly Results and the date.
Financial = ryder-financial USA = ryder-usa
RYDER SYSTEM, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS - UNAUDITED
(In millions, except per share
amounts)
Three months ended September
30,
Nine months ended September
30,
2022
2021
2022
2021
Lease & related maintenance and rental
revenues
$
1,044.5
1,014.0
$
3,119.1
2,941.1
Services revenue
1,811.1
1,320.8
5,258.3
3,762.4
Fuel services revenue
179.8
124.3
545.6
359.4
Total revenues
3,035.5
2,459.0
8,923.0
7,062.9
Cost of lease & related maintenance
and rental
691.0
719.2
2,077.8
2,151.7
Cost of services
1,545.8
1,161.9
4,512.6
3,251.7
Cost of fuel services
179.7
124.3
539.9
356.5
Selling, general and administrative
expenses
349.6
288.0
1,052.3
866.4
Non-operating pension costs, net
2.6
(0.1
)
8.0
(0.5
)
Used vehicle sales, net
(113.5
)
(69.3
)
(356.0
)
(149.8
)
Interest expense
57.8
53.8
165.5
162.6
Miscellaneous income, net
(8.5
)
(6.0
)
(22.7
)
(55.2
)
Restructuring and other items, net
(3.3
)
4.1
21.2
22.5
2,701.3
2,275.8
7,998.5
6,605.9
Earnings from continuing operations before
income taxes
334.2
183.2
924.4
457.0
Provision for income taxes
87.8
44.5
261.9
117.2
Earnings from continuing operations
246.4
138.7
662.6
339.8
Loss from discontinued operations, net of
tax
(0.4
)
(0.6
)
(1.6
)
(1.8
)
Net earnings
$
246.0
138.1
$
661.0
338.0
Earnings (loss) per common share —
Diluted
Continuing operations
$
4.82
2.58
$
12.86
6.33
Discontinued operations
(0.01
)
(0.01
)
(0.03
)
(0.03
)
Net earnings
$
4.82
2.57
$
12.82
6.30
Weighted average common shares outstanding
— Diluted
51.1
53.5
51.3
53.4
EPS from continuing operations
$
4.82
2.58
$
12.86
6.33
Non-operating pension costs, net
0.03
(0.02
)
0.10
(0.05
)
Restructuring and other, net
(0.05
)
0.07
0.43
0.18
ERP implementation costs
—
—
—
0.18
Gain on sale of U.K. revenue earning
equipment
(0.29
)
—
(0.84
)
—
Gains on sale of U.K. properties
(0.20
)
(0.08
)
(0.66
)
(0.60
)
Tax adjustments, net
0.14
—
0.55
0.01
Comparable EPS from continuing operations
(1)
$
4.45
2.55
$
12.44
6.05
(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.
RYDER SYSTEM, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS - UNAUDITED
(In millions)
September 30,
2022
December 31, 2021
Assets:
Cash and cash equivalents
$
456.3
234.0
Other current assets
1,882.4
2,226.7
Revenue earning equipment, net
8,273.6
8,323.0
Operating property and equipment, net
1,117.6
985.0
Other assets
2,769.2
2,065.7
$
14,499.0
13,834.3
Liabilities and shareholders' equity:
Current liabilities
$
2,152.6
1,867.5
Total debt (including current portion)
6,334.1
6,579.7
Other non-current liabilities (including
deferred income taxes)
3,001.5
2,589.2
Shareholders' equity
3,010.8
2,797.9
$
14,499.0
13,834.3
SELECTED KEY RATIOS AND
METRICS
September 30,
2022
December 31, 2021
Debt to equity
210
%
235
%
Three months ended September.
30,
Six months ended September
30,
2022
2021
2022
2021
Comparable EBITDA (1)
$
697.0
611.7
$
2,032.1
1,803.2
Effective interest rate (average cost of
debt)
3.6
%
3.5
%
3.4
%
3.4
%
Nine months ended September
30,
2022
2021
Net cash provided by operating activities
from continuing operations
$
1,786.4
1,684.9
Free cash flow (1)
886.5
829.0
Capital expenditures paid
1,916.7
1,427.7
Gross capital expenditures
2,032.4
1,495.9
Twelve months ended September
30,
2022
2021
ROE (2)
30.0
%
15.7
%
————————————
(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.
RYDER SYSTEM, INC. AND
SUBSIDIARIES
BUSINESS SEGMENT REVENUE AND
EARNINGS - UNAUDITED
(In millions)
Three months ended September
30,
Nine months ended September
30,
2022
2021
B(W)
2022
2021
B(W)
Total Revenue:
Fleet Management Solutions:
ChoiceLease
$
791.2
799.6
(1
)%
$
2,396.1
2,399.5
—
%
Commercial rental
349.6
300.6
16
%
1,003.4
790.6
27
%
SelectCare and other
162.5
147.4
10
%
492.9
450.3
9
%
Fuel services and ChoiceLease liability
insurance revenue
278.6
188.8
48
%
839.9
539.7
56
%
Total Fleet Management Solutions
1,581.9
1,436.3
10
%
4,732.2
4,180.1
13
%
Supply Chain Solutions
1,206.5
802.4
50
%
3,469.0
2,284.7
52
%
Dedicated Transportation Solutions
454.3
380.4
19
%
1,329.5
1,055.6
26
%
Eliminations
(207.2
)
(160.0
)
(30
)%
(607.7
)
(457.4
)
(33
)%
Total revenue
$
3,035.5
2,459.0
23
%
$
8,923.0
7,062.9
26
%
Operating Revenue: (1)
Fleet Management Solutions
$
1,303.2
1,247.6
4
%
$
3,892.3
3,640.4
7
%
Supply Chain Solutions
834.9
559.3
49
%
2,371.4
1,596.4
49
%
Dedicated Transportation Solutions
317.0
271.6
17
%
919.0
764.2
20
%
Eliminations
(108.2
)
(95.6
)
(13
)%
(313.1
)
(278.0
)
(13
)%
Operating revenue
$
2,346.9
1,982.9
18
%
$
6,869.6
5,723.0
20
%
Business Segment Earnings:
Earnings from continuing operations before
income taxes:
Fleet Management Solutions
$
265.3
186.4
42
%
$
798.8
408.2
96
%
Supply Chain Solutions
64.0
22.2
189
%
150.8
96.2
57
%
Dedicated Transportation Solutions
28.2
11.3
149
%
71.5
37.5
91
%
Eliminations
(28.0
)
(21.1
)
33
%
(83.8
)
(52.5
)
59
%
329.4
198.8
66
%
937.4
489.3
92
%
Unallocated Central Support Services
(21.0
)
(17.0
)
24
%
(60.8
)
(53.3
)
14
%
Non-operating pension costs, net
(2.6
)
0.1
NM
(8.0
)
0.5
NM
Other items impacting comparability,
net
28.5
1.3
NM
55.9
20.5
NM
Earnings from continuing operations
before income taxes
334.2
183.2
82
%
924.4
457.0
102
%
Provision for income taxes
87.8
44.5
97
%
261.9
117.2
123
%
Earnings from continuing operations
$
246.4
138.7
78
%
$
662.6
339.8
95
%
————————————
(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.
RYDER SYSTEM, INC. AND
SUBSIDIARIES
BUSINESS SEGMENT REVENUE AND
EARNINGS - UNAUDITED
(In millions)
Three months ended September
30,
Nine months ended September
30,
(In millions)
2022
2021
B(W)
2022
2021
B(W)
Fleet Management Solutions
FMS total revenue
$
1,581.9
1,436.3
10
%
$
4,732.2
4,180.1
13
%
Fuel services and ChoiceLease liability
insurance(1)
(278.6
)
(188.8
)
48
%
(839.9
)
(539.7
)
56
%
FMS operating revenue (2)
$
1,303.2
1,247.6
4
%
$
3,892.3
3,640.4
7
%
Segment earnings before income taxes
$
265.3
186.4
42
%
$
798.8
408.2
96
%
FMS earnings before income taxes as % of
FMS total revenue
16.8
%
13.0
%
16.9
%
9.8
%
FMS earnings before income taxes as % of
FMS operating revenue (2)
20.4
%
14.9
%
20.5
%
11.2
%
Three months ended September
30,
Nine months ended September
30,
2022
2021
B(W)
2022
2021
B(W)
Supply Chain Solutions
SCS total revenue
$
1,206.5
802.4
50
%
$
3,469.0
2,284.7
52
%
Subcontracted transportation and fuel
(371.6
)
(243.1
)
53
%
(1,097.6
)
(688.2
)
59
%
SCS operating revenue (2)
$
834.9
559.3
49
%
$
2,371.4
1,596.4
49
%
Segment earnings before income taxes
$
64.0
22.2
189
%
$
150.8
96.2
57
%
SCS earnings before income taxes as % of
SCS total revenue
5.3
%
2.8
%
4.3
%
4.2
%
SCS earnings before income taxes as % of
SCS operating revenue (2)
7.7
%
4.0
%
6.4
%
6.0
%
Three months ended September
30,
Nine months ended September
30,
2022
2021
B(W)
2022
2021
B(W)
Dedicated Transportation
Solutions
DTS total revenue
$
454.3
380.4
19
%
$
1,329.5
1,055.6
26
%
Subcontracted transportation and fuel
(137.3
)
(108.8
)
26
%
(410.5
)
(291.3
)
41
%
DTS operating revenue (2)
$
317.0
271.6
17
%
$
919.0
764.2
20
%
Segment earnings before income taxes
$
28.2
11.3
149
%
$
71.5
37.5
91
%
DTS earnings before income taxes as % of
DTS total revenue
6.2
%
3.0
%
5.4
%
3.5
%
DTS earnings before income taxes as % of
DTS operating revenue (2)
8.9
%
4.2
%
7.8
%
4.9
%
————————————
(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 (FMS, SCS and DTS) 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.
RYDER SYSTEM, INC. AND
SUBSIDIARIES
BUSINESS SEGMENT INFORMATION -
ROLLING TWELVE MONTHS ENDED - UNAUDITED
(In millions)
Twelve months ended September
30,
2022
2021
B(W)
Fleet Management Solutions
FMS total revenue
$
6,231.1
5,514.9
13
%
Fuel services and ChoiceLease liability
insurance (1)
(1,038.6
)
(681.4
)
52
%
FMS operating revenue (2)
$
5,192.5
4,833.5
7
%
Segment earnings before income taxes
$
1,053.7
468.4
125
%
FMS earnings before income taxes as % of
FMS total revenue
16.9
%
8.5
%
FMS earnings before income taxes as % of
FMS operating revenue (2)
20.3
%
9.7
%
Twelve months ended September
30,
2022
2021
B(W)
Supply Chain Solutions
SCS total revenue
$
4,339.1
2,995.9
45
%
Subcontracted transportation and fuel
$
(1,353.7
)
(893.8
)
51
%
SCS operating revenue (2)
$
2,985.5
2,102.2
42
%
Segment earnings before income taxes
$
172.0
130.3
32
%
SCS earnings before income taxes as % of
SCS total revenue
4.0
%
4.3
%
SCS earnings before income taxes as % of
SCS operating revenue (2)
5.8
%
6.2
%
Twelve months ended September
30,
2022
2021
B(W)
Dedicated Transportation
Solutions
DTS total revenue
$
1,731.1
1,356.4
28
%
Subcontracted transportation and fuel
(521.4
)
(361.2
)
44
%
DTS operating revenue (2)
$
1,209.7
995.2
22
%
Segment earnings before income taxes
$
83.1
52.8
57
%
DTS earnings before income taxes as % of
DTS total revenue
4.8
%
3.9
%
DTS earnings before income taxes as % of
DTS operating revenue (2)
6.9
%
5.3
%
————————————
(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 (FMS, SCS and DTS) 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.
RYDER SYSTEM, INC. AND
SUBSIDIARIES
BUSINESS SEGMENT INFORMATION -
UNAUDITED
KEY PERFORMANCE INDICATORS
Three months ended September
30,
Nine months ended September
30,
2022/2021
2022
2021
2022
2021
Three Months
Nine Months
ChoiceLease
Average fleet count
137,400
145,200
141,400
147,000
(5
)%
(4
)%
End of period fleet count
136,200
144,700
136,200
144,700
(6
)%
(6
)%
North America (N.A.) end of period fleet
count
134,100
133,800
134,100
133,800
—
%
—
%
N.A. average active ChoiceLease vehicles
(1)
128,800
129,300
128,700
130,200
—
%
(1
)%
Commercial rental
Average fleet count
41,700
39,400
41,500
37,000
6
%
12
%
End of period fleet count
41,900
40,300
41,900
40,300
4
%
4
%
Rental utilization - power units (2)
83.2
%
82.8
%
83.1
%
78.7
%
40 bps
440 bps
Rental rate change - % (3)
7
%
9
%
7
%
11
%
Customer vehicles under
SelectCare contracts
Average fleet count
55,800
53,400
55,500
52,600
4
%
6
%
End of period fleet count
56,000
53,900
56,000
53,900
4
%
4
%
Customer vehicles under
SCS
End of period fleet count (4)
12,500
10,500
12,500
10,500
19
%
19
%
DTS
End of period fleet count (4)
11,400
10,800
11,400
10,800
6
%
6
%
Used vehicle sales (UVS)
End of period fleet count
4,700
3,500
4,700
3,500
34
%
34
%
Used vehicles sold (5)
7,500
4,900
22,300
17,500
53
%
27
%
N.A. UVS pricing change (6)
Tractors
14
%
100
%
72
%
62
%
Trucks
26
%
103
%
69
%
66
%
————————————
(1) Active ChoiceLease vehicles are
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 global 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
SelectCare.
(5) For the three and nine months ended
September 30, 2022, includes 2,500 and 9,000 vehicles sold as part
of the exit of the UK business
(6) Represents percentage change in North
America 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 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
RYDER SYSTEM, INC. AND SUBSIDIARIES
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 System, Inc.
or each business segment (FMS, SCS and DTS) excluding any (1) fuel
and (2) subcontracted transportation, as well as (3) revenue from
our ChoiceLease liability insurance program which was discontinued
in early 2020. We believe operating revenue provides useful
information to investors as we use it to evaluate the operating
performance of our core businesses and as a measure of sales
activity at the consolidated level for Ryder System, Inc., as well
as for each of our business segments. We also use segment EBT as a
percentage of segment operating revenue for each business segment
for the same reason. Note: FMS EBT, SCS EBT and DTS EBT, our
primary measures of segment performance, are not non-GAAP
measures.
Fuel: We exclude FMS, SCS and DTS fuel
from the calculation of our operating revenue measures, as fuel is
an ancillary service that we provide our customers. Fuel revenue is
impacted by fluctuations in market fuel prices and the costs are
largely a pass-through to our customers, resulting in minimal
changes in our profitability during periods of steady market fuel
prices. However, profitability may be positively or negatively
impacted by rapid changes in market fuel prices during a short
period of time, as customer pricing for fuel services is
established based on current market fuel costs.
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.
ChoiceLease liability insurance: We
exclude ChoiceLease liability insurance as we announced our plan in
the first quarter of 2020 to exit the extension of our liability
insurance coverage for ChoiceLease customers. The exit of this
program was completed in the first quarter of 2021. We are
excluding the revenue associated with this program for better
comparability of our on-going operations.
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 comparable earnings 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 as detailed in the reconciliation table below. These
other significant items vary from period to period and, in some
periods, there may be no such significant items.
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 net earnings and average shareholders' equity. 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 analysts, investors and other
interested parties to measure financial performance and our ability
to service debt and meet our payment obligations. In addition, we
believe that the inclusion of comparable EBITDA provides
consistency in financial reporting and enables analysts and
investors to perform meaningful comparisons of past, present and
future operating results. Other companies may calculate comparable
EBITDA differently; therefore, our presentation of comparable
EBITDA may not be comparable to similarly-titled measures used by
other companies.
Comparable EBITDA should not be considered
as an alternative to net earnings, earnings from continuing
operations before income taxes or earnings from continuing
operations determined in accordance with GAAP, as an indicator of
the Company’s operating performance, as an alternative to cash
flows from operating activities (determined in accordance with
GAAP), as an indicator of cash flows, or as a measure of
liquidity.
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.
RYDER SYSTEM, INC. AND
SUBSIDIARIES
APPENDIX - NON-GAAP FINANCIAL
MEASURE RECONCILIATIONS - UNAUDITED
(In millions)
OPERATING REVENUE
RECONCILIATION
Three months ended September
30,
Nine months ended September
30,
2022
2021
2022
2021
Total revenue
$
3,035.5
2,459.0
$
8,923.0
7,062.9
Subcontracted transportation and fuel
(688.5
)
(476.2
)
(2,053.4
)
(1,339.1
)
ChoiceLease liability insurance
revenue
—
—
—
(0.8
)
Operating revenue (1)
$
2,346.9
1,982.9
$
6,869.6
5,723.0
TOTAL CASH
GENERATED / FREE CASH FLOW RECONCILIATION
Nine months ended September
30,
2022
2021
Net cash provided by operating activities
from continuing operations
$
1,786.4
1,684.9
Proceeds from sales (primarily revenue
earning equipment) (2)
976.3
571.1
Other (2)
40.5
0.7
Total cash generated (1)
2,803.2
2,256.7
Purchases of property and revenue earning
equipment (2)
(1,916.7
)
(1,427.7
)
Free cash flow (1)
$
886.5
829.0
————————————
(1) Non-GAAP financial measure.
(2) Included in cash flows from investing
activities.
Note: Amounts may not be additive due to
rounding.
RYDER SYSTEM, INC. AND
SUBSIDIARIES
APPENDIX - NON-GAAP FINANCIAL
MEASURE RECONCILIATIONS - UNAUDITED
(In millions)
ADJUSTED RETURN
ON EQUITY RECONCILIATION
Twelve months ended September
30,
2022
2021
Net earnings
$
842.3
363.5
Other items impacting comparability
(1)
(45.8
)
2.7
Income taxes (2)
315.6
114.8
Adjusted earnings before income taxes
1,112.1
481.0
Adjusted income taxes (3)
(287.6
)
(112.3
)
Adjusted net earnings
$
824.5
368.7
Average shareholders' equity
$
2,760.7
2,323.5
Average adjustments to shareholders'
equity (4)
(8.5
)
30.2
Adjusted average shareholders' equity
$
2,752.1
2,353.8
Adjusted return on equity (5)
30.0
%
15.7
%
————————————
(1) Refer to the table below for a
composition of Other items impacting comparability, net for the
12-month rolling period.
(2) Includes income taxes on discontinued
operations.
(3) Represents the provision for income
taxes plus income taxes on other items impacting comparability.
(4) Represents the impact of other items
impacting comparability, net of tax, to equity for the respective
periods.
(5) Adjusted return on equity is
calculated by dividing Adjusted net earnings into Adjusted average
shareholders' equity.
Twelve months ended September
30,
2022
2021
Restructuring and other, net
$
31.1
20.6
ERP implementation costs
—
19.9
Gains on sale of U.K. revenue earning
equipment
(43.3
)
—
Gains on sale of U.K. properties (1)
(33.6
)
(43.9
)
Early redemption of medium-term notes
—
9.0
ChoiceLease liability insurance
revenue
—
(2.9
)
Other items impacting comparability
$
(45.8
)
2.7
————————————
Note: Amounts may not be additive due to
rounding.
(1) Primarily includes gains on properties
as part of planned exit of the U.K. business in 2022 and certain
FMS properties in the U.K. that were restructured as part of cost
reduction activities in prior periods
RYDER SYSTEM, INC. AND
SUBSIDIARIES
APPENDIX - NON-GAAP FINANCIAL
MEASURE RECONCILIATIONS - UNAUDITED
(In millions)
COMPARABLE
EARNINGS BEFORE INCOME TAXES / COMPARABLE EARNINGS BEFORE INTEREST,
TAXES, DEPRECIATION AND AMORTIZATION RECONCILIATION
Three months ended September
30,
Nine months ended September
30,
2022
2021
2022
2021
Net earnings
$
246.0
138.1
$
661.0
338.0
Loss from discontinued operations, net of
tax
0.4
0.6
1.6
1.8
Provision for income taxes
87.8
44.5
261.9
117.2
Earnings before income taxes from
continuing operations
334.2
183.2
924.4
457.0
Non-operating pension costs, net
2.6
(0.1
)
8.0
(0.5
)
Restructuring and other, net
(3.3
)
4.1
21.2
9.7
ERP implementation costs
—
—
—
12.7
Gains on sale of U.K. revenue earning
equipment
(14.9
)
—
(43.3
)
—
Gains on sale of U.K. properties (1)
(10.2
)
(5.4
)
(33.8
)
(42.2
)
ChoiceLease liability insurance
revenue
—
—
(0.8
)
Comparable earnings before income taxes
(2)
308.4
181.8
876.6
436.0
Interest expense
57.8
53.8
165.5
162.6
Depreciation
421.1
443.8
1,275.3
1,349.2
Used vehicle sales, net
(98.5
)
(69.3
)
(312.7
)
(149.8
)
Amortization
8.3
1.7
27.5
5.1
Comparable EBITDA (2)
$
697.0
611.7
$
2,032.1
1,803.2
————————————
(1) Primarily includes gains on properties
as part of planned exit of the U.K. business in 2022 and certain
FMS properties in the U.K. that were restructured as part of cost
reduction activities in prior periods
(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.
RYDER SYSTEM, INC. AND
SUBSIDIARIES
APPENDIX - NON-GAAP FINANCIAL
MEASURE RECONCILIATIONS - UNAUDITED
(In millions)
COMPARABLE
EARNINGS RECONCILIATION
Three months ended September
30,
Nine months ended September
30,
2022
2021
2022
2021
Earnings from continuing operations
$
246.4
138.7
$
662.6
339.8
Non-operating pension costs, net
1.7
(0.9
)
5.1
(2.6
)
Restructuring and other, net
(3.0
)
3.7
22.0
9.5
ERP implementation costs
—
—
—
9.4
Gains on sale of U.K. revenue earning
equipment
(14.9
)
—
(43.3
)
—
Gains on sale of U.K. properties (1)
(10.1
)
(4.1
)
(33.7
)
(32.1
)
Tax adjustments, net (2)
7.2
—
28.5
0.8
Comparable earnings from continuing
operations (3)
$
227.3
137.5
$
641.2
324.8
Tax rate on continuing operations
26.3
%
24.3
%
28.3
%
25.7
%
Tax adjustments and income tax effects of
non-GAAP adjustments (3)
—
%
0.1
%
(1.4
) %
(0.2
) %
Comparable tax rate on continuing
operations (4)
26.3
%
24.4
%
26.9
%
25.5
%
————————————
(1) Primarily includes gains on properties
as part of planned exit of the U.K. business in 2022 and certain
FMS properties in the U.K. that were restructured as part of cost
reduction activities in prior periods
(2) Adjustments include the global tax
impact related to gains on sales of U.K. revenue earning equipment
and properties as well as the release of the valuation allowance on
U.K. deferred tax assets in the third quarter and nine months ended
September 30, 2022, and expiring state net operating losses in the
third quarter and nine months ended September 30, 2021.
(3) Non-GAAP financial measure.
(4) 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.
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)
OPERATING REVENUE
GROWTH FORECAST RECONCILIATION
Twelve months ended December
31,
2022
2021
B(W)
Total revenue
$
11,900
9,663
23
%
Subcontracted transportation and fuel
(2,700
)
(1,834
)
47
%
ChoiceLease liability insurance
revenue
—
(1
)
NM
Operating revenue (1)
$
9,200
7,828
18
%
COMPARABLE
EARNINGS PER SHARE FORECAST RECONCILIATION
Fourth Quarter 2022
Full Year 2022
EPS from continuing operations
$3.53 - $3.73
$16.40 - $16.60
Non-operating pension costs
0.03
0.13
Restructuring and other, net
(0.38)
(0.88)
Comparable EPS from continuing operations
forecast (1)
$3.18 - $3.38
$15.65 - $15.85
TOTAL CASH
GENERATED / FREE CASH FLOW FORECAST RECONCILIATION
2022 Forecast
Net cash provided by operating activities
from continuing operations
$ 2,300
Proceeds from sales (primarily revenue
earning equipment) (2)
1,200
Total cash generated (1)
3,500
Purchases of property and revenue earning
equipment (2)
(2,700 - 2,600)
Free cash flow (1)
$800M - $900M
————————————
(1) Non-GAAP financial measure.
(2) Included in cash flows from investing
activities.
RYDER SYSTEM, INC. AND
SUBSIDIARIES
APPENDIX - NON-GAAP FINANCIAL
MEASURE RECONCILIATIONS - UNAUDITED
(In millions)
ADJUSTED RETURN
ON EQUITY FORECAST RECONCILIATION
2022 Forecast
Net earnings
$
825
Other items impacting comparability
(1)
(85
)
Income taxes (2)
325
Adjusted earnings before income taxes
1,065
Adjusted income taxes (3)
(300
)
Adjusted net earnings for ROE (numerator)
(4) [A]
$
765
Average shareholders' equity
$
2,900
Adjustment to equity (5)
(15
)
Adjusted average total equity
(denominator) (4) [B]
$
2,885
Adjusted return on equity (4) [A]/[B]
26.5
%
————————————
(1) Forecasted other items impacting
comparability includes restructuring and other, net of $10 million,
gains on sale of U.K. revenue earning equipment of $(50) million,
and gains on sale of U.K. properties of $(45) million.
(2) Includes income taxes on discontinued
operations.
(3) Represents the tax provision on
adjusted earnings before income taxes.
(4) 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.
(5) Represents the impact to equity of
items to arrive at adjusted earnings.
Note: Amounts may not be additive due to
rounding.
View source
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