Ryder Reports Second Quarter 2022 Results

Rhea-AI Summary

Ryder System reported a strong Q2 2022, achieving a GAAP EPS of $4.72, up from $2.78 YoY, driven by Fleet Management Solutions (FMS) and Supply Chain Solutions (SCS). Total revenue reached $3 billion, a 27% increase, and operating revenue increased by 20% to $2.3 billion. The company raised its full-year GAAP EPS forecast to $14.45 - $14.95. Ryder also announced a 7% dividend increase and plans to complete a $300 million share repurchase program. Strong cash flow and improved operational performance position Ryder well for future growth.

Positive

• GAAP EPS rose to $4.72 from $2.78 YoY, showing strong earnings growth.
• Total revenue increased 27% to $3.0 billion; operating revenue up 20%.
• Full-year GAAP EPS forecast increased to $14.45 - $14.95.
• 7% increase in quarterly dividend, maintaining a 46-year payout history.
• Strong cash flow, with free cash flow forecast raised to $750 - $850 million.

Negative

• SCS earnings impacted by one-time charges, lowering EBT percentage.
• Expecting a moderation in used vehicle market conditions in H2 2022.

Second Quarter 2022

• GAAP EPS from continuing operations of $4.72 versus $2.78 in prior year driven primarily by significantly higher results in Fleet Management Solutions
• Comparable EPS (non-GAAP) from continuing operations of $4.43 versus $2.40 in prior year
• Total revenue of $3.0 billion and operating revenue (non-GAAP) of $2.3 billion up 27% and 20%, respectively, reflecting organic revenue growth in all business segments and Supply Chain Solutions acquisitions

Full-Year 2022 Forecast

• Increased GAAP EPS forecast to $14.45 - $14.95 from $13.23 - $14.23
• Increased comparable EPS (non-GAAP) forecast to $14.30 - $14.80 from $13.40 - $14.40
• Adjusted ROE (ROE) forecast revised to 25% - 26% from 24% - 26%
• Net cash provided by operating activities from continuing operations forecast of $2.3 billion; free cash flow (non-GAAP) forecast increased to $750 million - $850 million reflecting lower expected lease capital expenditures due to OEM delays

MIAMI--(BUSINESS WIRE)-- Ryder System, Inc. (NYSE: R), a leader in supply chain, dedicated transportation, and fleet management solutions, reported results for the three months ended June 30 as follows:

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)		$	338.4		203.6		$	240.3		149.6		$	4.72		2.78
Comparable (non-GAAP)		$	308.2		175.6		$	225.5		129.1		$	4.43		2.40

Total and operating revenue for the three months ended June 30 were as follows:

(In millions)		Total Revenue								Operating Revenue (non-GAAP)
			2022		2021		Change				2022		2021		Change
Total		$	3,034		2,382		27	%		$	2,307		1,923		20	%
Fleet Management Solutions (FMS)		$	1,621		1,408		15	%		$	1,307		1,225		7	%
Supply Chain Solutions (SCS)		$	1,174		776		51	%		$	798		535		49	%
Dedicated Transportation Solutions (DTS)		$	450		355		27	%		$	306		256		19	%

CEO Comment

Commenting on the company's results and outlook, Ryder Chairman and CEO Robert Sanchez says, "Record performance in the second quarter reflects earnings growth in all three business segments. Earnings were higher than our most recent forecast due primarily to better than expected results in rental and SCS. We generated record ROE of 28% reflecting ongoing truck capacity constraints in the market as well as continued benefits from initiatives to increase returns and drive higher core earnings. We also realized record new contractual sales year-to-date which positions us well for future revenue growth.

"We continue to execute on our strategy to create long-term shareholder value by accelerating growth in SCS and DTS while improving returns through the cycle in FMS. The accretion from our recent SCS acquisitions in fast-growing e-commerce fulfillment and multi-client warehousing was above our expectations in the quarter. SCS and DTS results improved sequentially reflecting higher prices to address unusually high labor cost increases as well as the impact from profitable new business. As we have largely completed implementing these rate increases, we are confident that SCS and DTS earnings will be at their high single-digit targets in the second half of the year, with DTS already achieving that level in the second quarter.

"Pricing initiatives in our contractual supply chain, dedicated, and lease businesses are contributing to higher core earnings which positions Ryder to deliver on our long-term targets over the cycle. In FMS, earnings continued to benefit from our multi-year lease pricing initiative as expected and we anticipate incremental earnings from this initiative as the remaining half of our lease portfolio is renewed at higher returns.

"Used vehicle market conditions remain strong despite a modest decline in sequential tractor pricing, consistent with our expectations. We continue to anticipate that the historically strong used vehicle sales and rental market environment will moderate in the second half of the year, with slower freight growth partially offset by ongoing tight market capacity. Residual value estimates are at historically low levels, which we expect to significantly reduce the likelihood of incurring losses on used vehicle sales or the need for additional depreciation.

"Looking ahead, we've increased our 2022 ROE and comparable EPS forecasts to reflect improved rental and SCS performance. Due to OEM delivery delays, we expect to defer approximately $200 million of planned lease capital to 2023. As such, we have increased our free cash flow forecast to $750 - $850 million and now expect our ending lease fleet in North America to be up approximately 2,000 vehicles.

"Our strong balance sheet enables us to pursue targeted acquisitions and investments, and return capital to shareholders. We expect to complete our $300 million accelerated share repurchase program no later than October and have existing authorization for an additional 2-million-share discretionary program and a 2.5-million-share anti-dilutive program. In addition, our board recently approved a 7% increase to our quarterly dividend, which has been paid without interruption for more than 46 years."

Outlook Updates

	Full Year 2022
Total Revenue Growth	~22%
Operating Revenue Growth (non-GAAP)	~16%
FY22 GAAP EPS	$14.45 - $14.95
FY22 Comparable EPS (non-GAAP)	$14.30 - $14.80
ROE(1)	25% - 26%
Net Cash from Operating Activities from Continuing Operations	~$2.3B
Free Cash Flow (non-GAAP)	$750M - 850M
	Third Quarter 2022
3Q22 GAAP EPS	$3.41 - $3.66
3Q22 Comparable EPS (non-GAAP)	$3.40 - $3.65

————————————

(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.

Second Quarter Business Segment Operating Results

Fleet Management Solutions: Higher Earnings Driven by Used Vehicle Sales and Rental Results

(In millions)		2Q22				2Q21			Change
Total Revenue		$	1,621			1,408			15	%
Operating Revenue(1)		$	1,307			1,225			7	%
Earnings Before Tax (EBT)		$	285			158			80	%
FMS EBT as a % of FMS total revenue			17.6	%		11.3	%		630 bps
FMS EBT as a % of FMS operating revenue(1)			21.8	%		12.9	%		890 bps
Rolling 12-months EBT as % of total and operating revenue		2Q22				2Q21			Change
FMS EBT as a % of FMS total revenue			16.0	%		5.5	%		1,050 bps
FMS EBT as a % of FMS operating revenue(1)			19.0	%		6.3	%		1,270 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 strong demand and higher pricing. Total revenue also increased from higher fuel prices passed through to customers.

FMS EBT increased by $127 million primarily from higher used vehicle sales and rental results reflecting benefits from tight truck capacity and initiatives to improve returns in these areas. Lease pricing and maintenance costs initiatives also contributed to higher results. Increased gains on used vehicles sold and a declining impact of depreciation expense from prior vehicle residual value estimate changes contributed $84 million in higher year-over-year earnings. Used vehicle pricing increased significantly from the prior year for both trucks and tractors. Sequentially from the first quarter of 2022, used truck pricing increased 9%; however, used tractor pricing declined 5%. Used vehicle inventory levels increased sequentially to 4,200 vehicles and remains below the company's long-term target range of 7,000 - 9,000 vehicles. Rental results benefited from record second quarter power-fleet utilization of 85% (up from 80% in the prior year) and a 6% increase in power-fleet pricing. FMS EBT as a percentage of FMS operating revenue is well above the company's long-term target of low double-digits for the second quarter and for the trailing 12-month period.

Supply Chain Solutions: Higher Earnings Reflect Revenue Growth Partially Offset by One-Time Charges

(In millions)		2Q22				2Q21			Change
Total Revenue		$	1,174			776			51	%
Operating Revenue(1)		$	798			535			49	%
Earnings Before Tax (EBT)		$	53			41			28	%
EBT as a % of total revenue			4.5	%		5.3	%		(80) bps
EBT as a % of operating revenue(1)			6.6	%		7.7	%		(110) bps
Rolling 12-months EBT as % of total and operating revenue		2Q22				2Q21			Change
EBT as a % of total revenue			3.3	%		5.8	%		(250) bps
EBT as a % of operating revenue(1)			4.8	%		8.2	%		(340) 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 revenue growth in all industry verticals from new business, higher volumes, and increased pricing. Operating revenue grew 23% organically year-over-year.

SCS EBT increased primarily due to revenue growth from new business, higher pricing, and acquisitions. This increase was partially offset by customer accommodation charges, bad debt, and incentive-based compensation costs. SCS EBT as a percentage of SCS operating revenue is below the company's long-term target of high single-digits for the second quarter 2022 and the trailing 12-month period.

Dedicated Transportation Solutions: Higher Earnings Driven by Increased Pricing and New Business

(In millions)		2Q22				2Q21			Change
Total Revenue		$	450			355			27	%
Operating Revenue(1)		$	306			256			19	%
Earnings Before Tax (EBT)		$	23			13			76	%
EBT as a % of total revenue			5.1	%		3.7	%		140 bps
EBT as a % of operating revenue(1)			7.6	%		5.1	%		250 bps
Rolling 12-months EBT as % of total and operating revenue		2Q22				2Q21			Change
EBT as a % of total revenue			4.0	%		5.2	%		(120) bps
EBT as a % of operating revenue(1)			5.7	%		6.9	%		(120) bps

(1)

Non-GAAP financial measure excluding fuel and subcontracted transportation.

Dedicated Transportation Solutions (DTS) total and operating revenue increased due to new business, pricing, and volumes.

DTS EBT increased primarily due to pricing, new business, and gains on sales of used vehicles, partially offset by strategic investments. 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 second quarter 2022 but below target for the trailing 12-month period.

Corporate Financial Information

Unallocated Central Support Services (CSS)

Unallocated CSS costs were $24 million as compared to $18 million in the prior year, primarily reflecting increased professional fees and incentive-based compensation costs.

Income Taxes

Our effective income tax rate from continuing operations was 29.0% as compared to 26.5% in the prior year due to incremental U.S. tax on higher foreign earnings related to the exit of our UK FMS business. Our comparable effective income tax rate (a non-GAAP measure) from continuing operations was 26.8% as compared to 26.5% in the prior year.

Capital Expenditures, Cash Flow, and Leverage

Year-to-date capital expenditures increased to $1.3 billion in 2022 compared to $963 million in 2021 due to higher planned investments in the lease fleet.

Year-to-date net cash provided by operating activities from continuing operations was consistent with the prior year at $1.1 billion, reflecting higher earnings partially offset by higher working capital needs. Free cash flow (a non-GAAP measure) was $551 million, down from $602 million in 2021 primarily due to an increase in capital expenditures, partially offset by higher proceeds from the sale of revenue-earning equipment, including the sale of UK vehicles related to our exit plan. The free cash flow forecast for 2022 was increased to a range of $750 million - $850 million from $550 million - $650 million, reflecting deferred capital expenditures related to OEM vehicle delivery delays.

Debt-to-equity as of June 30, 2022 decreased to 233% from 235% at year-end 2021 and is below the company's long-term target of 250% - 300%.

Share Repurchases and Dividends

Ryder expects to complete its $300 million accelerated share repurchase program no later than October 2022. Board authorization exists for a 2-million-share discretionary program and a 2.5-million-share anti-dilutive program.

In July 2022, the board declared a regular quarterly cash dividend of $0.62 per common share, an increase of 7% compared to the cash dividend Ryder had been paying since July 2021. This represents Ryder's 184th consecutive quarterly cash dividend.

Fleet Management Solutions UK Business Update

The company has made 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 half of the UK vehicles and properties, generating proceeds of $205 million.

Supplemental Company Information

Second Quarter Net Earnings

(In millions, except EPS)		Earnings							Diluted EPS
		2022				2021			2022				2021
Earnings from continuing operations		$	240.3			149.6			$	4.72			2.78
Discontinued operations			(0.9	)		(0.5	)			(0.02	)		(0.01	)
Net earnings		$	239.4			149.1			$	4.70			2.77

Year-to-Date Operating Results
(In millions, except EPS)	Six months ended June 30,
	2022			2021		Change
Total revenue	$	5,887.5		4,603.9		28	%
Operating revenue (non-GAAP)	$	4,522.7		3,740.2		21	%
Earnings from continuing operations	$	416.2		201.2		107	%
Comparable earnings from continuing operations (non-GAAP)	$	413.8		187.3		121	%
Net earnings	$	415.0		199.9		108	%
Earnings per common share (EPS) - Diluted
Continuing operations	$	8.05		3.75		115	%
Comparable (non-GAAP)	$	8.00		3.49		129	%
Net earnings	$	8.03		3.73		115	%

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 July 27, 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

AUDIO REPLAY VIA PHONE
An audio replay of the call will be available one hour after call ends for 30 days.
Toll Free Number:		888-203-1112
USA Toll Number:		719-457-0820
Replay Passcode:		1420126

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 Reports and the date.

AUDIO & SLIDE REPLAY VIA INTERNET An audio replay including the slide presentation will be available within two hours following the call. Click here then select Financials/Quarterly Reports and the date.

AUDIO & SLIDE REPLAY VIA INTERNET An audio replay including the slide presentation will be available within two hours following the call. Click here then select Financials/Quarterly Reports 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 June 30,							Six months ended June 30,
		2022				2021			2022				2021
Lease & related maintenance and rental revenues		$	1,049.6			986.7			$	2,074.6			1,927.1
Services revenue			1,777.6			1,276.1				3,447.1			2,441.6
Fuel services revenue			206.5			119.4				365.8			235.1
Total revenues			3,033.7			2,382.2				5,887.5			4,603.9
Cost of lease & related maintenance and rental			687.9			702.4				1,386.7			1,432.6
Cost of services			1,520.1			1,090.0				2,966.8			2,089.8
Cost of fuel services			202.5			117.5				360.2			232.2
Selling, general and administrative expenses			360.7			302.7				702.7			578.4
Non-operating pension costs, net			2.6			(0.4	)			5.4			(0.4	)
Used vehicle sales, net			(129.6	)		(51.6	)			(242.6	)		(80.5	)
Interest expense			55.3			54.2				107.7			108.9
Miscellaneous income, net			(14.6	)		(43.8	)			(14.2	)		(49.2	)
Restructuring and other items, net			10.3			7.7				24.6			18.3
			2,695.3			2,178.7				5,297.3			4,330.0
Earnings from continuing operations before income taxes			338.4			203.6				590.2			273.8
Provision for income taxes			98.0			54.0				174.1			72.7
Earnings from continuing operations			240.3			149.6				416.2			201.2
Loss from discontinued operations, net of tax			(0.9	)		(0.5	)			(1.2	)		(1.2	)
Net earnings		$	239.4			149.1			$	415.0			199.9
Earnings (loss) per common share — Diluted
Continuing operations		$	4.72			2.78			$	8.05			3.75
Discontinued operations			(0.02	)		(0.01	)			(0.02	)		(0.02	)
Net earnings		$	4.70			2.77			$	8.03			3.73
Weighted average common shares outstanding — Diluted			50.9			53.6				51.7			53.4
EPS from continuing operations		$	4.72			2.78			$	8.05			3.75
Non-operating pension costs, net			0.03			(0.02	)			0.07			(0.03	)
Restructuring and other, net			0.21			0.06				0.48			0.10
ERP implementation costs			—			0.07				—			0.18
Gain on sale of U.K. revenue earning equipment			(0.39	)		—				(0.55	)		—
Gains on sale of properties			(0.45	)		(0.50	)			(0.46	)		(0.52	)
Tax adjustments, net			0.31			0.01				0.41			0.01
Comparable EPS from continuing operations(1)		$	4.43			2.40			$	8.00			3.49

(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)
		June 30, 2022			December 31, 2021
Assets:
Cash and cash equivalents		$	447.7		234.0
Other current assets			1,969.6		2,226.7
Revenue earning equipment, net			8,319.1		8,323.0
Operating property and equipment, net			1,070.0		985.0
Other assets			2,669.4		2,065.7
		$	14,475.9		13,834.3
Liabilities and shareholders' equity:
Current liabilities		$	2,173.1		1,867.5
Total debt (including current portion)			6,593.2		6,579.7
Other non-current liabilities (including deferred income taxes)			2,877.0		2,589.2
Shareholders' equity			2,832.6		2,797.9
		$	14,475.9		13,834.3

SELECTED KEY RATIOS AND METRICS
		June 30, 2022		December 31, 2021
Debt to equity		233 %		235 %

		Three months ended June 30,						Six months ended June 30,
		2022				2021		2022				2021
Comparable EBITDA(1)		$	688.1			624.1		$	1,335.2			1,191.5
Effective interest rate (average cost of debt)			3.4	%		3.4	%		3.3	%		3.4	%

		Six months ended June 30,
		2022			2021
Net cash provided by operating activities from continuing operations		$	1,102.8		1,131.2
Free cash flow(1)			551.3		602.2
Capital expenditures paid			1,195.0		904.4
Gross capital expenditures			1,306.9		963.0

		Twelve months ended June 30,
		2022		2021
ROE(2)		28.0 %		12.2 %

————————————

(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 June 30,										Six months ended June 30,
		2022				2021			B(W)			2022				2021			B(W)
Total Revenue:
Fleet Management Solutions:
ChoiceLease		$	802.6			802.8			—	%		$	1,604.9			1,599.9			—	%
Commercial rental			340.7			267.0			28	%			653.8			490.0			33	%
SelectCare and other			163.7			154.9			6	%			330.4			302.9			9	%
Fuel services and ChoiceLease liability insurance revenue			314.1			183.6			71	%			561.2			350.9			60	%
Total Fleet Management Solutions			1,621.1			1,408.2			15	%			3,150.3			2,743.7			15	%
Supply Chain Solutions			1,174.0			775.6			51	%			2,262.5			1,482.3			53	%
Dedicated Transportation Solutions			450.2			354.7			27	%			875.2			675.2			30	%
Eliminations			(211.6	)		(156.3	)		(35	) %			(400.5	)		(297.4	)		(35	) %
Total revenue		$	3,033.7			2,382.2			27	%		$	5,887.5			4,603.9			28	%
Operating Revenue:(1)
Fleet Management Solutions		$	1,307.0			1,224.7			7	%		$	2,589.1			2,392.8			8	%
Supply Chain Solutions			798.4			534.6			49	%			1,536.5			1,037.2			48	%
Dedicated Transportation Solutions			305.6			255.8			19	%			602.0			492.7			22	%
Eliminations			(103.8	)		(92.3	)		(13	) %			(205.0	)		(182.4	)		(12	) %
Operating revenue		$	2,307.1			1,922.8			20	%		$	4,522.7			3,740.2			21	%
Business Segment Earnings:
Earnings from continuing operations before income taxes:
Fleet Management Solutions		$	285.3			158.5			80	%		$	533.5			221.9			140	%
Supply Chain Solutions			52.6			41.0			28	%			86.9			74.0			17	%
Dedicated Transportation Solutions			23.2			13.2			76	%			43.4			26.1			66	%
Eliminations			(29.2	)		(19.2	)		52	%			(55.8	)		(31.5	)		77	%
			331.9			193.5			72	%			608.0			290.5			109	%
Unallocated Central Support Services			(23.8	)		(17.9	)		33	%			(39.8	)		(36.3	)		10	%
Non-operating pension costs, net			(2.6	)		0.4			NM				(5.4	)		0.4			NM
Other items impacting comparability, net			32.8			27.6			19	%			27.4			19.2			43	%
Earnings from continuing operations before income taxes			338.4			203.6			66	%			590.2			273.8			116	%
Provision for income taxes			98.0			54.0			82	%			174.1			72.7			139	%
Earnings from continuing operations		$	240.3			149.6			61	%		$	416.2			201.2			107	%

————————————

(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 June 30,										Six months ended June 30,
(In millions)		2022				2021			B(W)			2022				2021			B(W)
Fleet Management Solutions
FMS total revenue		$	1,621.1			1,408.2			15	%		$	3,150.3			2,743.7			15	%
Fuel services and ChoiceLease liability insurance(1)			(314.1	)		(183.6	)		71	%			(561.2	)		(350.9	)		60	%
FMS operating revenue(2)		$	1,307.0			1,224.7			7	%		$	2,589.1			2,392.8			8	%
Segment earnings before income taxes		$	285.3			158.5			80	%		$	533.5			221.9			140	%
FMS earnings before income taxes as % of FMS total revenue			17.6	%		11.3	%						16.9	%		8.1	%
FMS earnings before income taxes as % of FMS operating revenue(2)			21.8	%		12.9	%						20.6	%		9.3	%
		Three months ended June 30,										Six months ended June 30,
			2022			2021			B(W)				2022			2021			B(W)
Supply Chain Solutions
SCS total revenue		$	1,174.0			775.6			51	%		$	2,262.5			1,482.3			53	%
Subcontracted transportation and fuel			(375.5	)		(241.1	)		56	%			(726.0	)		(445.2	)		63	%
SCS operating revenue(2)		$	798.4			534.6			49	%		$	1,536.5			1,037.2			48	%
Segment earnings before income taxes		$	52.6			41.0			28	%		$	86.9			74.0			17	%
SCS earnings before income taxes as % of SCS total revenue			4.5	%		5.3	%						3.8	%		5.0	%
SCS earnings before income taxes as % of SCS operating revenue(2)			6.6	%		7.7	%						5.7	%		7.1	%
		Three months ended June 30,										Six months ended June 30,
			2022			2021			B(W)				2022			2021			B(W)
Dedicated Transportation Solutions
DTS total revenue		$	450.2			354.7			27	%		$	875.2			675.2			30	%
Subcontracted transportation and fuel			(144.7	)		(98.9	)		46	%			(273.2	)		(182.5	)		50	%
DTS operating revenue(2)		$	305.6			255.8			19	%		$	602.0			492.7			22	%
Segment earnings before income taxes		$	23.2			13.2			76	%		$	43.4			26.1			66	%
DTS earnings before income taxes as % of DTS total revenue			5.1	%		3.7	%						5.0	%		3.9	%
DTS earnings before income taxes as % of DTS operating revenue(2)			7.6	%		5.1	%						7.2	%		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 - ROLLING TWELVE MONTHS ENDED - UNAUDITED
(In millions)
		Twelve months ended June 30,
		2022				2021			B(W)
Fleet Management Solutions
FMS total revenue		$	6,085.5			5,375.8			13	%
Fuel services and ChoiceLease liability insurance(a)			(948.7	)		(636.5	)		49	%
FMS operating revenue*		$	5,136.9			4,739.3			8	%
Segment earnings before income taxes		$	974.8			298.2			227	%
FMS earnings before income taxes as % of FMS total revenue			16.0	%		5.5	%
FMS earnings before income taxes as % of FMS operating revenue*			19.0	%		6.3	%
		Twelve months ended June 30,
		2022				2021			B(W)
Supply Chain Solutions
SCS total revenue		$	3,935.0			2,879.0			37	%
Subcontracted transportation and fuel		$	(1,225.1	)		(843.8	)		45	%
SCS operating revenue*		$	2,709.9			2,035.2			33	%
Segment earnings before income taxes		$	130.2			166.0			(22	) %
SCS earnings before income taxes as % of SCS total revenue			3.3	%		5.8	%
SCS earnings before income taxes as % of SCS operating revenue*			4.8	%		8.2	%
		Twelve months ended June 30,
		2022				2021			B(W)
Dedicated Transportation Solutions
DTS total revenue		$	1,657.1			1,275.8			30	%
Subcontracted transportation and fuel			(492.9	)		(318.4	)		55	%
DTS operating revenue *		$	1,164.3			957.3			22	%
Segment earnings before income taxes		$	66.3			66.2			—	%
DTS earnings before income taxes as % of DTS total revenue			4.0	%		5.2	%
DTS earnings before income taxes as % of DTS operating revenue*			5.7	%		6.9	%

————————————

* 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.

(a) Includes intercompany fuel sales from FMS to SCS and DTS.

RYDER SYSTEM, INC. AND SUBSIDIARIES BUSINESS SEGMENT INFORMATION - UNAUDITED KEY PERFORMANCE INDICATORS
		Three months ended June 30,						Six months ended June 30,						2022/2021
		2022			2021			2022			2021			Three Months			Six Months
ChoiceLease
Average fleet count		142,900			146,900			143,400			147,800			(3	) %		(3	) %
End of period fleet count		138,500			146,200			138,500			146,200			(5	) %		(5	) %
North America (N.A.) end of period fleet count		133,400			135,100			133,400			135,100			(1	) %		(1	) %
N.A. average active ChoiceLease vehicles(1)		128,500			130,300			128,700			130,600			(1	) %		(1	) %
Commercial rental
Average fleet count		41,900			36,700			41,500			35,800			14	%		16	%
End of period fleet count		41,500			38,000			41,500			38,000			9	%		9	%
Rental utilization - power units(2)		84.5	%		79.6	%		83.1	%		76.4	%		490 bps			670 bps
Rental rate change - %(3)		6	%		13	%		7	%		11	%
Customer vehicles under
SelectCare contracts
Average fleet count		55,900			53,200			55,400			52,200			5	%		6	%
End of period fleet count		55,200			52,900			55,200			52,900			4	%		4	%
Customer vehicles under
SCS
End of period fleet count(4)		11,700			10,000			11,700			10,000			17	%		17	%
DTS
End of period fleet count(4)		11,600			10,400			11,600			10,400			12	%		12	%
Used vehicle sales (UVS)
End of period fleet count		4,200			4,300			4,200			4,300			(2	) %		(2	) %
Used vehicles sold(5)		10,500			6,000			14,800			12,600			75	%		17	%
N.A. UVS pricing change(6)
Tractors		91	%		73	%		117	%		47	%
Trucks		81	%		72	%		94	%		54	%

————————————

(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 six months ended June 30, 2022, includes 6,500 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 revenues 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) any other significant items that are not representative of our business operations. 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, 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 June 30,							Six months ended June 30,
		2022				2021			2022				2021
Total revenue		$	3,033.7			2,382.2			$	5,887.5			4,603.9
Subcontracted transportation and fuel			(726.6	)		(459.4	)			(1,364.8	)		(862.9	)
ChoiceLease liability insurance revenue			—			—				—			(0.8	)
Operating revenue(1)		$	2,307.1			1,922.8			$	4,522.7			3,740.2

TOTAL CASH GENERATED / FREE CASH FLOW RECONCILIATION
		Six months ended June 30,
		2022				2021
Net cash provided by operating activities from continuing operations		$	1,102.8			1,131.2
Proceeds from sales (primarily revenue earning equipment)(2)			636.2			374.7
Other(2)			7.3			0.7
Total cash generated(1)			1,746.3			1,506.6
Purchases of property and revenue earning equipment(2)			(1,195.0	)		(904.4	)
Free cash flow(1)		$	551.3			602.2

————————————

(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 June 30,
		2022				2021
Net earnings		$	734.3			$	261.4
Other items impacting comparability(1)			(18.6	)			19.8
Income taxes(2)			272.4				79.9
Adjusted earnings before income taxes			988.1				361.1
Adjusted income taxes(3)			(251.1	)			(80.1	)
Adjusted net earnings		$	737.0				281.0
Average shareholders' equity		$	2,642.1				2,252.6
Average adjustments to shareholders' equity(4)			(6.8	)			45.0
Adjusted average shareholders' equity		$	2,635.4				2,297.6
Adjusted return on equity(5)			28.0	%			12.2	%

————————————

(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 June 30,
		2022				2021
Restructuring and other, net		$	38.6			35.2
ERP implementation costs			—			25.6
Gains on sale of U.K. revenue earning equipment			(28.4	)		—
Gains on sale of properties			(28.8	)		(42.2	)
Early redemption of medium-term notes			—			9.0
ChoiceLease liability insurance revenue			—			(7.8	)
Other items impacting comparability		$	(18.6	)		19.8

————————————

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 BEFORE INCOME TAXES / COMPARABLE EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION RECONCILIATION
		Three months ended June 30,							Six months ended June 30,
		2022				2021			2022				2021
Net earnings		$	239.4			149.1			$	415.0			199.9
Loss from discontinued operations, net of tax			0.9			0.5				1.2			1.2
Provision for income taxes			98.0			54.0				174.1			72.7
Earnings before income taxes from continuing operations			338.4			203.6				590.2			273.8
Non-operating pension costs, net			2.6			(0.4	)			5.4			(0.4	)
Restructuring and other, net			10.3			2.6				24.6			5.6
ERP implementation costs			—			5.1				—			12.7
Gains on sale of U.K. revenue earning equipment			(20.1	)		—				(28.4	)		—
Gains on sale of properties			(23.0	)		(35.3	)			(23.6	)		(36.8	)
ChoiceLease liability insurance revenue			—			—				—			(0.8	)
Comparable earnings before income taxes(1)			308.2			175.6				568.2			254.2
Interest expense			55.3			54.2				107.7			108.9
Depreciation			424.9			444.3				854.2			905.4
Used vehicle sales, net			(109.5	)		(51.6	)			(214.2	)		(80.5	)
Amortization			9.2			1.7				19.2			3.4
Comparable EBITDA(1)		$	688.1			624.1			$	1,335.2			1,191.5

————————————

(1)		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 June 30,							Six months ended June 30,
		2022				2021			2022				2021
Earnings from continuing operations		$	240.3			149.6			$	416.2			201.2
Non-operating pension costs, net			1.6			(1.0	)			3.4			(1.8	)
Restructuring and other, net			10.7			3.2				25.0			5.8
ERP implementation costs			—			3.8				—			9.4
Gains on sale of U.K. revenue earning equipment			(20.1	)		—				(28.4	)		—
Gains on sale of properties			(23.0	)		(26.8	)			(23.6	)		(28.0	)
Tax adjustments, net (1)			16.0			0.4				21.3			0.7
Comparable earnings from continuing operations(2)		$	225.5			129.1			$	413.8			187.3
Tax rate on continuing operations			29.0	%		26.5	%			29.5	%		26.5	%
Tax adjustments and income tax effects of non-GAAP adjustments(3)			(2.2	) %		—	%			(2.3	) %		(0.2	) %
Comparable tax rate on continuing operations(3)			26.8	%		26.5	%			27.2	%		26.3	%

————————————

(1)		Adjustments include the global tax impact related to gains on sales of U.K. revenue earning equipment and properties in the three and six months ended June 30, 2022, and expiring state net operating losses in the six months ended June 30, 2021.
(2)		Non-GAAP financial measure.
(3)		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		$	11,800			9,663			22	%
Subcontracted transportation and fuel			(2,700	)		(1,834	)		47	%
ChoiceLease liability insurance revenue			—			(1	)		NM
Operating revenue(1)		$	9,100			7,828			16	%

COMPARABLE EARNINGS PER SHARE FORECAST RECONCILIATION
		Third Quarter 2022			Full Year 2022
EPS from continuing operations		$3.41 - $3.66			$14.45 - $14.95
Non-operating pension costs, net		0.03			0.13
Restructuring and other, net		(0.04	)		(0.28	)
Comparable EPS from continuing operations forecast(1)		$3.40 - $3.65			$14.30 - $14.80

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)			1,100
Total cash generated(1)			3,400
Purchases of property and revenue earning equipment(2)		(2,650 - 2,550)
Free cash flow(1)		$750M - 850M

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(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		$	740
Other items impacting comparability(1)			(50	)
Income taxes(2)			300
Adjusted earnings before income taxes			990
Adjusted income taxes(3)			(265	)
Adjusted net earnings for ROE (numerator)(4) [A]		$	725
Average shareholders' equity		$	2,850
Adjustment to equity(5)			(10	)
Adjusted average total equity (denominator)(4) [B]		$	2,840
Adjusted return on equity(4) [A]/[B]			25.5	%

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(1)		Forecasted other items impacting comparability includes restructuring and other, net of $45 million, gains on sale of U.K. revenue earning equipment of $(50) million, and gains on sale of 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 version on businesswire.com: https://www.businesswire.com/news/home/20220727005120/en/

Media:

Amy Federman

(305) 500-4989

Investor Relations:

Bob Brunn

(305) 500-4053

Source: Ryder System, Inc.

FAQ

What were Ryder's Q2 2022 earnings per share (EPS)?

Ryder's GAAP EPS for Q2 2022 was $4.72, compared to $2.78 in the prior year.

How much did Ryder's total revenue increase in Q2 2022?

Ryder's total revenue increased by 27% to $3.0 billion in Q2 2022.

What is the updated full-year GAAP EPS forecast for Ryder in 2022?

The full-year 2022 GAAP EPS forecast for Ryder has been increased to $14.45 - $14.95.

What dividend increase did Ryder announce in July 2022?

Ryder announced a 7% increase in its quarterly cash dividend in July 2022.

What factors contributed to Ryder's increased free cash flow forecast?

The increased free cash flow forecast is due to deferred capital expenditures related to OEM vehicle delivery delays.