Ryder Reports Third Quarter 2022 Results
Ryder System reported a robust third-quarter 2022 performance, with GAAP EPS from continuing operations at $4.82, up from $2.58 a year ago. Total revenue reached $3.0 billion, an increase of 23%, driven by gains across all business segments, notably a 50% rise in supply chain solutions. The company raised its full-year EPS forecasts, anticipating GAAP EPS between $16.40 and $16.60. Free cash flow estimates also increased to $800 million - $900 million. Ryder’s balance sheet remains strong, facilitating targeted acquisitions and shareholder returns.
- GAAP EPS from continuing operations increased to $4.82 from $2.58 YoY.
- Total revenue rose by 23% to $3.0 billion, with consistent growth across all segments.
- Supply Chain Solutions revenue surged by 50%, contributing significantly to overall growth.
- Full-year GAAP EPS forecast raised to $16.40 - $16.60 from $14.45 - $14.95.
- Free cash flow forecast increased to $800 million - $900 million, from $750 million - $850 million.
- Strong balance sheet supporting targeted acquisitions and shareholder returns.
- Used truck and tractor pricing decreased sequentially by 11% and 22%, respectively.
- Ongoing OEM delays impacting fleet growth, with only 2,000 vehicles expected added by year-end.
Third Quarter 2022
-
GAAP EPS from continuing operations of
$4.82 $2.58 -
Comparable EPS (non-GAAP) from continuing operations of
$4.45 $2.55 -
Total revenue of
$3.0 billion $2.3 billion 23% and18% , 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 $14.45 $14.95 -
Increased comparable EPS (non-GAAP) forecast to
$15.65 $15.85 $14.30 $14.80 -
Adjusted
ROE (ROE) forecast increased to26% -27% from25% -26% -
Net cash provided by operating activities from continuing operations forecast of
$2.3 billion $800 million $900 million $750 $850 million
Ryder is a leader in supply chain, dedicated transportation, and fleet management solutions. (Photo: Business Wire)
(In millions, except EPS) |
|
Earnings
|
|
Earnings |
|
Diluted Earnings
|
|||||||||
|
|
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
(In millions) |
|
Total Revenue |
|
Operating Revenue
|
||||||||||||
|
|
2022 |
|
2021 |
|
Change |
|
2022 |
|
2021 |
|
Change |
||||
Total |
|
$ |
3,035 |
|
2,459 |
|
23 |
% |
|
$ |
2,347 |
|
1,983 |
|
18 |
% |
|
|
$ |
1,582 |
|
1,436 |
|
10 |
% |
|
$ |
1,303 |
|
1,248 |
|
4 |
% |
|
|
$ |
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,
"We executed on our initiatives and returned to high single-digit earnings targets in both supply chain and dedicated, resulting in approximately
"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
"Our strong balance sheet enables us to pursue targeted acquisitions and return capital to shareholders. We completed our
"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 |
~ |
Operating Revenue Growth (non-GAAP) |
~ |
FY22 GAAP EPS |
|
FY22 Comparable EPS (non-GAAP) |
|
|
|
ROE (1) |
|
|
|
Free Cash Flow (non-GAAP) |
|
|
|
|
Fourth Quarter 2022 |
4Q22 GAAP EPS |
|
4Q22 Comparable EPS (non-GAAP) |
|
————————————
(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
(In millions) |
|
3Q22 |
|
3Q21 |
|
Change |
|
Total Revenue |
|
$ |
1,582 |
|
1,436 |
|
|
Operating Revenue (1) |
|
$ |
1,303 |
|
1,248 |
|
|
|
|
|
|
|
|
|
|
Earnings Before Tax (EBT) |
|
$ |
265 |
|
186 |
|
|
FMS EBT as a % of FMS total revenue |
|
|
|
|
|
|
380 bps |
FMS EBT as a % of FMS operating revenue (1) |
|
|
|
|
|
|
550 bps |
|
|
|
|
|
|
|
|
Rolling 12-months EBT as % of total and operating revenue |
|
|
3Q22 |
|
3Q21 |
|
Change |
FMS EBT as a % of FMS total revenue |
|
|
|
|
|
|
840 bps |
FMS EBT as a % of FMS operating revenue (1) |
|
|
|
|
|
|
1,060 bps |
(1) Non-GAAP financial measure excluding fuel and lease liability insurance revenue. |
FMS EBT increased by
(In millions) |
|
3Q22 |
|
3Q21 |
|
Change |
|
Total Revenue |
|
$ |
1,207 |
|
802 |
|
|
Operating Revenue (1) |
|
$ |
835 |
|
559 |
|
|
|
|
|
|
|
|
|
|
Earnings Before Tax (EBT) |
|
$ |
64 |
|
22 |
|
|
EBT as a % of total revenue |
|
|
|
|
|
|
250 bps |
EBT as a % of operating revenue (1) |
|
|
|
|
|
|
370 bps |
|
|
|
|
|
|
|
|
Rolling 12-months EBT as % of total and operating revenue |
|
|
3Q22 |
|
3Q21 |
|
Change |
EBT as a % of total revenue |
|
|
|
|
|
|
(30) bps |
EBT as a % of operating revenue (1) |
|
|
|
|
|
|
(40) bps |
(1) Non-GAAP financial measure excluding fuel and subcontracted transportation. |
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 |
|
|
Operating Revenue (1) |
|
$ |
317 |
|
272 |
|
|
|
|
|
|
|
|
|
|
Earnings Before Tax (EBT) |
|
$ |
28 |
|
11 |
|
|
EBT as a % of total revenue |
|
|
|
|
|
|
320 bps |
EBT as a % of operating revenue (1) |
|
|
|
|
|
|
470 bps |
|
|
|
|
|
|
|
|
Rolling 12-months EBT as % of total and operating revenue |
|
|
3Q22 |
|
3Q21 |
|
Change |
EBT as a % of total revenue |
|
|
|
|
|
|
90 bps |
EBT as a % of operating revenue (1) |
|
|
|
|
|
|
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 CSS costs were
Income Taxes
Our effective income tax rate from continuing operations was
Capital Expenditures, Cash Flow, and Leverage
Year-to-date capital expenditures increased to
Year-to-date net cash provided by operating activities from continuing operations increased to
Debt-to-equity as of
Share Repurchase Programs
Ryder completed its
Fleet Management Solutions
The company continues to make significant progress in exiting the lower-return
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 |
||||||
|
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
-
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
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
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
Note: Regarding Non-GAAP Financial Measures
This news release includes certain non-GAAP financial measures as defined under
CONFERENCE CALL AND WEBCAST INFORMATION
Ryder’s earnings conference call and webcast is scheduled for |
||
LIVE AUDIO VIA PHONE |
|
|
Toll Free Number: |
888-352-6803 |
|
|
323-701-0225 |
|
Audio Passcode: |
Ryder |
|
Conference Leader: |
|
|
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
|
||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED |
||||||||||||||
(In millions, except per share amounts) |
|
Three months ended
|
|
Nine months ended
|
||||||||||
|
|
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 |
|
|
(0.29 |
) |
|
— |
|
|
|
(0.84 |
) |
|
— |
|
Gains on sale of |
|
|
(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. |
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED |
|||||
(In millions) |
|||||
|
|
|
|
|
|
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 |
||||||
|
|
|
|
|
||
Debt to equity |
|
210 |
% |
|
235 |
% |
|
|
Three months ended September. 30, |
|
Six months ended |
||||||||||
|
|
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 |
|||
|
|
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 |
||||
|
|
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. |
|
||||||||||||||||||||
BUSINESS SEGMENT REVENUE AND EARNINGS - UNAUDITED |
||||||||||||||||||||
(In millions) |
||||||||||||||||||||
|
|
Three months ended |
|
Nine months ended |
||||||||||||||||
|
|
2022 |
|
2021 |
|
B(W) |
|
2022 |
|
2021 |
|
B(W) |
||||||||
Total Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
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 |
% |
|
|
|
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 |
|
|
1,581.9 |
|
|
1,436.3 |
|
|
10 |
% |
|
|
4,732.2 |
|
|
4,180.1 |
|
|
13 |
% |
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
1,303.2 |
|
|
1,247.6 |
|
|
4 |
% |
|
$ |
3,892.3 |
|
|
3,640.4 |
|
|
7 |
% |
|
|
|
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: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
265.3 |
|
|
186.4 |
|
|
42 |
% |
|
$ |
798.8 |
|
|
408.2 |
|
|
96 |
% |
|
|
|
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 |
% |
|
|
|
(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. |
|
||||||||||||||||||||
BUSINESS SEGMENT REVENUE AND EARNINGS - UNAUDITED |
||||||||||||||||||||
(In millions) |
||||||||||||||||||||
|
|
Three months ended |
|
Nine months ended |
||||||||||||||||
(In millions) |
|
2022 |
|
2021 |
|
B(W) |
|
2022 |
|
2021 |
|
B(W) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
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 |
|
Nine months ended |
||||||||||||||||
|
|
2022 |
|
2021 |
|
B(W) |
|
2022 |
|
2021 |
|
B(W) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
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 |
|
Nine months ended |
||||||||||||||||
|
|
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 ( |
|
Note: Amounts may not be additive due to rounding. |
|
||||||||||
BUSINESS SEGMENT INFORMATION - ROLLING TWELVE MONTHS ENDED - UNAUDITED |
||||||||||
(In millions) |
||||||||||
|
|
Twelve months ended |
||||||||
|
|
2022 |
|
2021 |
|
B(W) |
||||
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
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 |
||||||||
|
|
2022 |
|
2021 |
|
B(W) |
||||
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
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 |
||||||||
|
|
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 ( |
|
Note: Amounts may not be additive due to rounding. |
|
||||||||||||||||||
BUSINESS SEGMENT INFORMATION - UNAUDITED |
||||||||||||||||||
KEY PERFORMANCE INDICATORS |
||||||||||||||||||
|
|
Three months ended
|
|
Nine months ended
|
|
2022/2021 |
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
Three
|
|
Nine
|
||||||
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 |
)% |
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
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 |
(5) For the three and nine months ended |
(6) Represents percentage change in |
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED
This press release and accompanying tables include “non-GAAP financial measures” as defined by
Specifically, the following non-GAAP financial measures are included in this press release:
Non-GAAP Financial Measure |
Comparable GAAP Measure |
Reconciliation in Section Entitled |
Operating Revenue Measures: |
||
Operating Revenue |
Total Revenue |
Appendix - Non-GAAP Financial Measure Reconciliations |
FMS Operating Revenue |
FMS Total Revenue |
Business Segment Information - Unaudited |
SCS Operating Revenue |
SCS Total Revenue |
|
DTS Operating Revenue |
DTS Total Revenue |
|
Operating Revenue Growth |
Total Revenue Growth |
Appendix - Non-GAAP Financial Measure Reconciliations |
FMS EBT as a % of FMS Operating Revenue |
FMS EBT as a % of FMS Total Revenue |
Business Segment Information - Unaudited |
SCS EBT as a % of SCS Operating Revenue |
SCS EBT as a % of SCS Total Revenue |
|
DTS EBT as a % of DTS Operating Revenue |
DTS EBT as a % of DTS Total Revenue |
|
Comparable Earnings Measures: |
||
Comparable Earnings Before Income Tax and Comparable Tax Rate |
Earnings Before Income Tax and Effective Tax Rate from Continuing Operations |
Appendix - Non-GAAP Financial Measure Reconciliations |
Comparable Earnings |
Earnings from Continuing Operations |
Appendix - Non-GAAP Financial Measure Reconciliations |
Comparable EPS |
EPS from Continuing Operations |
Condensed Consolidated Statements of Earnings - Unaudited
Appendix - Non-GAAP Financial Measure Reconciliations |
Adjusted Return on Equity (ROE) |
Not Applicable. However, the non-GAAP elements of the calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of net earnings to adjusted net earnings and average shareholders' equity to adjusted average equity is provided in the following reconciliations. |
Appendix - Non-GAAP Financial Measure Reconciliations |
Comparable Earnings Before Interest, Taxes, Depreciation and Amortization |
Net Earnings |
Appendix - Non-GAAP Financial Measure Reconciliations |
Cash Flow Measures: |
||
Total Cash Generated and Free Cash Flow |
Cash Provided by Operating Activities from Continuing Operations |
Appendix - Non-GAAP Financial Measure Reconciliations |
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED
Set forth in the table below is an overview of each non-GAAP financial measure and why management believes that presentation of each non-GAAP financial measure provides useful information to investors. See reconciliations for each of these measures following this table.
Operating Revenue Measures: |
|
Operating Revenue
FMS Operating Revenue
SCS Operating Revenue
DTS Operating Revenue
Operating Revenue Growth
FMS EBT as a % of FMS Operating Revenue
SCS EBT as a % of SCS Operating Revenue
DTS EBT as a % of DTS Operating Revenue
|
Operating revenue is defined as total revenue for
Fuel: We exclude
Subcontracted transportation: We exclude subcontracted transportation from the calculation of our operating revenue measures, as these services are also typically a pass-through to our customers and, therefore, fluctuations result in minimal changes to our profitability. While our SCS and DTS business segments subcontract certain transportation services to third party providers, our FMS business segment does not engage in subcontracted transportation and, therefore, this item is not applicable to FMS.
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. |
|
||||||||||||||
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED |
||||||||||||||
(In millions) |
||||||||||||||
OPERATING REVENUE RECONCILIATION |
|
|
|
|
|
|
|
|
||||||
|
|
Three months ended |
|
Nine months ended |
||||||||||
|
|
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 |
|||||
|
|
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. |
|
|||||||
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED |
|||||||
(In millions) |
|||||||
ADJUSTED RETURN ON EQUITY RECONCILIATION |
|
|
|
|
|||
|
|
Twelve months ended |
|||||
|
|
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 |
|||||
|
|
2022 |
|
2021 |
|||
Restructuring and other, net |
|
$ |
31.1 |
|
|
20.6 |
|
ERP implementation costs |
|
|
— |
|
|
19.9 |
|
Gains on sale of |
|
|
(43.3 |
) |
|
— |
|
Gains on sale of |
|
|
(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 |
|
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 |
|
Nine months ended |
||||||||||
|
|
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 |
|
|
(14.9 |
) |
|
— |
|
|
|
(43.3 |
) |
|
— |
|
Gains on sale of |
|
|
(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 |
(2) Non-GAAP financial measure. Non-GAAP elements of the calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of earnings before income taxes from continuing operations to comparable earnings before income taxes from continuing operations is set forth in this table. |
|
Note: Amounts may not be additive due to rounding. |
|
||||||||||||||
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED |
||||||||||||||
(In millions) |
||||||||||||||
COMPARABLE EARNINGS RECONCILIATION |
||||||||||||||
|
|
Three months ended |
|
Nine months ended |
||||||||||
|
|
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 |
|
|
(14.9 |
) |
|
— |
|
|
|
(43.3 |
) |
|
— |
|
Gains on sale of |
|
|
(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 |
(2) Adjustments include the global tax impact related to gains on sales of |
(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. |
|
||||||||||
APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED |
||||||||||
(In millions, except per share amounts) |
||||||||||
OPERATING REVENUE GROWTH FORECAST RECONCILIATION |
|
|
|
|
||||||
|
|
Twelve months ended |
|
|
||||||
|
|
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 |
|
|
|
|
Non-operating pension costs |
|
0.03 |
|
0.13 |
Restructuring and other, net |
|
(0.38) |
|
(0.88) |
Comparable EPS from continuing operations forecast (1) |
|
|
|
|
TOTAL CASH GENERATED / FREE CASH FLOW FORECAST RECONCILIATION |
|
|
|
|
2022 Forecast |
Net cash provided by operating activities from continuing operations |
|
|
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) |
|
|
————————————
(1) Non-GAAP financial measure. |
(2) Included in cash flows from investing activities. |
|
||||
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 |
(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/20221026005141/en/
Media:
(305) 500-4989
Investor Relations:
(305) 500-4053
Source:
FAQ
What were Ryder's third quarter 2022 earnings per share (EPS)?
How much did Ryder's total revenue grow in Q3 2022?
What is the full-year EPS forecast for Ryder in 2022?
How much free cash flow is Ryder expecting for 2022?
What major factors contributed to Ryder's revenue growth in Q3 2022?
