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Ryder Reports Third Quarter 2024 Results

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Ryder System reported Q3 2024 results with GAAP EPS of $3.25 and comparable EPS of $3.44, down from $3.44 and $3.58 respectively in the prior year. Total revenue reached $3.2 billion, up 8% from Q3 2023, while operating revenue grew 9% to $2.6 billion. The company reaffirmed its full-year 2024 guidance, including comparable EPS of $11.90-$12.10 and adjusted ROE of 16-16.5%. Performance was marked by weaker market conditions in rental and used vehicle sales, offset by stronger results in contractual lease, supply chain, and dedicated businesses. The company maintains a solid balance sheet with debt-to-equity at 249%, slightly below its target range.

Ryder System ha riportato i risultati del terzo trimestre 2024 con un utile netto per azione (EPS) GAAP di $3,25 e un EPS comparabile di $3,44, in calo rispetto a $3,44 e $3,58 rispettivamente dell'anno precedente. I ricavi totali hanno raggiunto $3,2 miliardi, con un incremento dell'8% rispetto al terzo trimestre 2023, mentre i ricavi operativi sono cresciuti del 9% a $2,6 miliardi. L'azienda ha confermato le previsioni per l'intero anno 2024, includendo un EPS comparabile di $11,90-$12,10 e un ROE corretto del 16-16,5%. La performance è stata influenzata da condizioni di mercato più deboli nel noleggio e nelle vendite di veicoli usati, compensate da risultati migliori nei servizi di leasing contrattuale, nella supply chain e nelle attività dedicate. L'azienda mantiene un solido bilancio con un rapporto debito-capitale del 249%, leggermente al di sotto del proprio intervallo obiettivo.

Ryder System reportó los resultados del tercer trimestre de 2024 con un EPS GAAP de $3.25 y un EPS comparable de $3.44, por debajo de $3.44 y $3.58 respectivamente del año anterior. Los ingresos totales alcanzaron $3.2 mil millones, un aumento del 8% con respecto al tercer trimestre de 2023, mientras que los ingresos operativos crecieron un 9% a $2.6 mil millones. La compañía reafirmó su guía para el año completo 2024, incluyendo un EPS comparable de $11.90-$12.10 y un ROE ajustado del 16-16.5%. El rendimiento estuvo marcado por condiciones de mercado más débiles en el alquiler y las ventas de vehículos usados, compensadas por resultados más sólidos en el leasing contractual, la cadena de suministro y los negocios dedicados. La compañía mantiene un sólido balance con una relación deuda-capital del 249%, ligeramente por debajo de su rango objetivo.

라이더 시스템은 2024년 3분기 실적을 발표했으며 GAAP 기준 주당순이익(EPS)은 $3.25, 비교 가능한 EPS는 $3.44로 지난해의 $3.44 및 $3.58에 비해 하락했습니다. 총 수익은 $3.2억 달러에 달하며, 2023년 3분기 대비 8% 증가했으며, 운영 수익은 9% 증가하여 $2.6억 달러에 이르렀습니다. 회사는 연간 2024년 가이던스를 재확인했으며, 여기에는 비교 가능한 EPS $11.90-$12.10 및 조정된 ROE 16-16.5%가 포함됩니다. 성과는 임대 및 중고차 판매의 시장 조건 약화에 의해 영향을 받았으나, 계약 임대, 공급망 및 전담 비즈니스에서의 더 강력한 결과로 상쇄되었습니다. 회사는 부채-자본 비율이 249%로 목표 범위에 비해 약간 낮은 건전한 대차대조표를 유지하고 있습니다.

Ryder System a annoncé ses résultats du troisième trimestre 2024 avec un BPA GAAP de 3,25 $ et un BPA comparable de 3,44 $, en baisse par rapport aux 3,44 $ et 3,58 $ de l'année précédente. Le chiffre d'affaires total a atteint 3,2 milliards de dollars, en hausse de 8 % par rapport au T3 2023, tandis que le chiffre d'affaires opérationnel a crû de 9 % pour atteindre 2,6 milliards de dollars. L'entreprise a réaffirmé ses prévisions pour l'année 2024, y compris un BPA comparable de 11,90 à 12,10 $ et un ROE ajusté de 16 à 16,5 %. La performance a été marquée par des conditions de marché plus faibles dans la location et les ventes de véhicules d'occasion, compensées par de meilleurs résultats dans le secteur de la location contractuelle, de la chaîne d'approvisionnement et des activités dédiées. L'entreprise maintient un solide bilan avec un ratio dettes/équité de 249 %, légèrement en dessous de sa fourchette cible.

Ryder System hat die Ergebnisse des 3. Quartals 2024 mit einem GAAP-EPS von $3,25 und einem vergleichbaren EPS von $3,44 veröffentlicht, was einen Rückgang von $3,44 und $3,58 im Vorjahr bedeutet. Der Gesamtumsatz erreichte $3,2 Milliarden, was einem Anstieg von 8 % im Vergleich zum 3. Quartal 2023 entspricht, während der Betriebsumsatz um 9 % auf $2,6 Milliarden anstieg. Das Unternehmen bestätigte seine Jahresprognose für 2024, die ein vergleichbares EPS von $11,90-$12,10 und eine angepasste Eigenkapitalrendite (ROE) von 16-16,5 % umfasst. Die Leistung war von schwächeren Marktbedingungen im Mietgeschäft und beim Verkauf von Gebrauchtfahrzeugen geprägt, was jedoch durch stärkere Ergebnisse im Bereich des Vertrags-Leasing, der Lieferkette und der spezialisierten Geschäftsfelder ausgeglichen wurde. Das Unternehmen verfügt über eine solide Bilanz mit einem Verhältnis von Schulden zu Eigenkapital von 249 %, das leicht unter dem angestrebten Zielbereich liegt.

Positive
  • Operating revenue increased 9% to $2.6 billion
  • Supply Chain Solutions EBT grew 14% to $93 million
  • Dedicated Transportation Solutions EBT increased 31% to $36 million
  • Free cash flow improved to $218 million from $32 million in prior year
Negative
  • GAAP EPS declined 5.5% to $3.25 from $3.44 year-over-year
  • Fleet Management Solutions EBT decreased 22% to $132 million
  • Used truck and tractor pricing declined 19% and 22% respectively
  • Rental power-fleet utilization dropped to 71% from 75% in prior year

Insights

Ryder's Q3 results demonstrate resilience amid challenging market conditions. $3.2 billion in total revenue represents an 8% increase, while operating revenue grew 9% to $2.6 billion. The company's transformed business model shows strength through diversification, with contractual businesses offsetting weakness in rental and used vehicle segments.

Key metrics reveal mixed performance: GAAP EPS declined to $3.25 from $3.44, while comparable EPS dropped to $3.44 from $3.58. The maintained full-year guidance of $11.90-$12.10 EPS and 16-16.5% ROE suggests management's confidence in Q4 recovery. The new share repurchase program and strong cash position ($218 million free cash flow) indicate financial flexibility despite market headwinds.

The transportation sector's cyclical downturn is evident in Ryder's segments, particularly in used vehicle sales and rental operations. However, the company's strategic pivot to contractual businesses provides stability. Supply Chain Solutions showed impressive growth with 14% EBT increase, while Dedicated Transportation Solutions delivered 31% EBT growth.

The 19% decline in used truck pricing and 22% drop in tractor pricing year-over-year signals continued market weakness, but sequential improvement in truck pricing (4% increase) suggests potential stabilization. The 71% rental power-fleet utilization, down from 75%, reflects broader industry challenges but remains within manageable levels.

Delivers Solid Q3 Results; Continues to Outperform Prior Cycles

Third Quarter 2024 Highlights

  • GAAP EPS from continuing operations of $3.25 compared to $3.44 in prior year
  • Comparable EPS (non-GAAP) from continuing operations of $3.44, as compared to $3.58 in prior year, reflecting weaker market conditions in rental and used vehicle sales, partially offset by higher earnings in contractual lease, supply chain, and dedicated businesses
  • Total revenue of $3.2 billion compared to $2.9 billion in prior year
  • Operating revenue (non-GAAP) of $2.6 billion, up 9%, reflecting recent acquisitions

Full-Year 2024 Forecast

  • Reaffirming Adjusted ROE (ROE) of 16% - 16.5%
  • Comparable EPS (non-GAAP) of $11.90 - $12.10
  • Reaffirming operating revenue (non-GAAP) expected to increase by approximately 8%
  • Reaffirming net cash provided by operating activities from continuing operations of $2.4 billion and free cash flow (non-GAAP) of positive $150 - $250 million

MIAMI--(BUSINESS WIRE)-- Ryder System, Inc. (NYSE: R) reported results for the three months ended September 30 as follows:

Ryder is a leader in supply chain, dedicated transportation, and fleet management solutions. (Photo: Business Wire)

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

 

 

2024

 

2023

 

2024

 

2023

 

2024

 

2023

Continuing operations (GAAP)

 

$

188

 

213

 

$

143

 

160

 

$

3.25

 

3.44

Comparable (non-GAAP)

 

$

199

 

227

 

$

151

 

165

 

$

3.44

 

3.58

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

(In millions)

 

Total Revenue

 

Operating Revenue

(non-GAAP)

 

 

2024

 

2023

 

Change

 

2024

 

2023

 

Change

Total

 

$

3,168

 

2,924

 

8%

 

$

2,593

 

2,379

 

9%

Fleet Management Solutions (FMS)

 

$

1,470

 

1,487

 

(1)%

 

$

1,281

 

1,266

 

1%

Supply Chain Solutions (SCS)

 

$

1,317

 

1,194

 

10%

 

$

996

 

909

 

10%

Dedicated Transportation Solutions (DTS)

 

$

633

 

448

 

41%

 

$

486

 

325

 

49%

CEO Comment

"Ryder’s solid third-quarter performance reflects continued execution of our balanced growth strategy," says Ryder Chairman and CEO Robert Sanchez. "Earnings growth in our contractual lease, dedicated, and supply chain businesses remains the key driver of outperformance relative to prior cycles. ROE of 16% continues to demonstrate the increased resilience of our transformed business model and is consistent with our expectations for the latter stage of a freight-cycle downturn. Although we did not see a recovery of market conditions in used vehicle sales and rental during the quarter, we delivered comparable EPS in line with our forecast.

"We saw double-digit earnings growth in our contractual businesses. Higher ChoiceLease results from our pricing and maintenance initiatives benefited FMS. Stronger operating performance and cost-management actions benefited SCS. DTS delivered strong earnings growth, demonstrating the resiliency of our legacy business. Each of the segments also benefited from recent acquisitions.

"The earnings power of our contractual businesses is also increasing our capital deployment capacity, enabling us to invest in profitable growth and strategic initiatives while also returning capital to shareholders. Our board authorized a new discretionary two-million-share repurchase program that replaces a recently completed program. In addition, our strong balance sheet has allowed us to fund organic growth, complete strategic acquisitions, and increase our dividend.

"The long-term secular growth trends remain intact for all of our contractual businesses, although we are experiencing near-term sales headwinds that reflect the extended freight downturn and overall economic uncertainty. We remain well positioned to benefit from the expected cycle upturn and to grow with our customers as conditions improve."

Third Quarter 2024 Segment Review

Fleet Management Solutions: Earnings Reflect Weaker Market Conditions in Rental and Used Vehicle Sales, Partially Offset by Higher ChoiceLease Performance

(In millions)

 

3Q24

 

3Q23

 

Change

Total Revenue

 

$

1,470

 

 

1,487

 

 

(1)%

Operating Revenue (1)

 

$

1,281

 

 

1,266

 

 

1%

 

 

 

 

 

 

 

Earnings Before Tax (EBT)

 

$

132

 

 

169

 

 

(22)%

EBT as a % of total revenue

 

9.0%

 

11.4%

 

(240) bps

EBT as a % of operating revenue (1)

 

10.3%

 

13.4%

 

(310) bps

 

 

 

 

 

 

 

(1) Non-GAAP financial measure excluding fuel services revenue.

  • FMS total revenue decreased 1% and operating revenue increased 1%
    • Total revenue reflects lower fuel services revenue passed through to customers, partially offset by higher operating revenue
    • Operating revenue reflects higher ChoiceLease revenue, partially offset by lower rental demand
  • FMS EBT of $132 million, down 22%
    • Weaker rental demand and lower used vehicle gains due to lower volumes and pricing
    • Higher ChoiceLease performance and benefits from maintenance cost-savings initiatives
    • Used truck and tractor pricing declined 19% and 22%, respectively, from prior year
    • Sequentially, used truck pricing was up 4%; tractor pricing was down 12%, partially due to sale of newer units in the second quarter
    • Rental power-fleet utilization was 71%, compared to 75% in prior year, on a 7% smaller average power fleet

Supply Chain Solutions: Solid Earnings Reflect Better Operating Performance

(In millions)

 

3Q24

 

3Q23

 

Change

Total Revenue

 

$

1,317

 

 

1,194

 

 

10%

Operating Revenue (1)

 

$

996

 

 

909

 

 

10%

 

 

 

 

 

 

 

Earnings Before Tax (EBT)

 

$

93

 

 

81

 

 

14%

EBT as a % of total revenue

 

7.0%

 

6.8%

 

20 bps

EBT as a % of operating revenue (1)

 

9.3%

 

9.0%

 

30 bps

 

 

 

 

 

 

 

(1) Non-GAAP financial measure excluding fuel and subcontracted transportation.

  • SCS total revenue and operating revenue both increased 10%
    • Growth primarily driven by recent acquisitions
  • SCS EBT grew to $93 million, up 14%
    • EBT growth primarily driven by stronger omnichannel retail performance and lower overhead spending

Dedicated Transportation Solutions: Strong Operating Performance and Acquisition Benefits

(In millions)

 

3Q24

 

3Q23

 

Change

Total Revenue

 

$

633

 

 

448

 

 

41%

Operating Revenue (1)

 

$

486

 

 

325

 

 

49%

 

 

 

 

 

 

 

Earnings Before Tax (EBT)

 

$

36

 

 

28

 

 

31%

EBT as a % of total revenue

 

5.8%

 

6.2%

 

(40) bps

EBT as a % of operating revenue (1)

 

7.5%

 

8.5%

 

(100) bps

 

 

 

 

 

 

 

(1) Non-GAAP financial measure excluding fuel and subcontracted transportation.

  • DTS total revenue increased 41% and operating revenue grew 49%
    • Increases due to acquisition
  • DTS EBT of $36 million, up 31%
    • Increase due to improved operating performance and acquisition benefits

Corporate Financial Information

Tax Rate

Our effective income tax rate from continuing operations was 24.0%, as compared to 25.2% in the prior year. Our comparable effective income tax rate (a non-GAAP measure) from continuing operations was 23.9%, compared to 27.0% in the prior year, due to discrete tax benefits.

Capital Expenditures, Cash Flow, and Leverage

Year-to-date capital expenditures decreased to $2.0 billion in 2024 compared to $2.6 billion in 2023, primarily reflecting reduced investments in the ChoiceLease fleet due to lower sales activity.

Year-to-date net cash provided by operating activities from continuing operations was $1.7 billion compared to $1.8 billion in 2023, primarily reflecting higher working capital needs. Free cash flow (non-GAAP) of $218 million compared to $32 million in 2023, reflects reduced capital expenditures partially offset by lower proceeds from sales of used vehicles and property.

Debt-to-equity as of September 30, 2024 was 249%, compared to 232% at year-end 2023, and was slightly below the company's long-term target of 250% to 300%.

Outlook

"Our transformed business model has delivered solid results through this extended freight recession," says Ryder Chief Financial Officer John Diez. "Year-over-year earnings comparisons continue to improve, and we now expect earnings growth in the fourth quarter driven by our high-performing contractual portfolio. Our current forecast does not contemplate a recovery in freight conditions this year. We remain confident that ongoing execution of our balanced growth strategy will further enhance returns and that all segments, particularly FMS, are well positioned to benefit from the expected cycle upturn."

 

Full Year 2024

Total Revenue Growth

~7%

Operating Revenue Growth (non-GAAP)

~8%

FY24 GAAP EPS

$11.10 - $11.30

FY24 Comparable EPS (non-GAAP)

$11.90 - $12.10

 

 

Adjusted ROE (1)

16% - 16.5%

Net Cash from Operating Activities from Continuing Operations

~$2.4B

Free Cash Flow (non-GAAP)

$150 - $250M

Capital Expenditures

~$2.9B

Debt-to-Equity

~250%

 

 

 

Fourth Quarter 2024

4Q24 GAAP EPS

$3.13 - $3.33

4Q24 Comparable EPS (non-GAAP)

$3.32 - $3.52

————————————

(1) The non-GAAP elements of this calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of net earnings to adjusted net earnings and average shareholders' equity to adjusted average equity is provided in the Appendix - Non-GAAP Financial Measures Reconciliations at the end of this release.

Supplemental Company Information

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 capabilities with the safest and most professional drivers in the industry. With a dedicated transportation solution, Ryder helps customers increase their competitive position, reduce risk, and integrate their transportation needs with their overall supply chain.
  • Fleet Management Solutions – Ryder's FMS business segment provides a broad range of services to help businesses of all sizes, across virtually every industry, deliver for their customers. From leasing, maintenance, and fueling, to rental and used vehicle sales, customers rely on Ryder's expertise to help them lower their costs, redirect capital to other parts of their business, and focus on what they do best – so they can grow.

For more information on 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; our outlook; our expectations regarding market trends and economic environment, such as rental demand, economic growth, the freight environment, used vehicle sales and rental demand, and performance in our omnichannel retail vertical; our expectations regarding the freight cycle, including timing and the impact of the freight cycle on our businesses; our expectations regarding total and operating revenue, earnings per share, comparable earnings per share, adjusted ROE, earnings before income tax, net cash from operating activities from continuing operations, debt-to-equity, capital expenditures, operating cash flow and free cash flow, and the causes of change; our ability to execute our balanced growth strategy; the impact of inflationary pressures; our expectations regarding commercial rental demand and utilization and used vehicle sales volume and pricing; our expectations regarding long-term profitable growth and secular growth trends; our expectations with respect to our actions to increase returns and create long-term value; our expectations regarding used vehicle inventory and fleet size; our ability to outperform prior cycles; our ability to support organic growth, including growing our contractual lease, dedicated, and supply chain businesses at targeted returns; our expectations regarding strategic investments and acquisitions; performance of our contractual portfolio; and our expectations regarding our ability to return capital to shareholders, including through share repurchases and dividends. Our forward-looking statements also include our estimates of the impact of residual value estimates on earnings and depreciation expense that is based in part 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: changes in general economic and financial conditions in the U.S. and worldwide; the ongoing supply chain and labor challenges and vehicle production constraints, including original equipment manufacturer delays; the effect of geopolitical events; 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, 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, for example, economic conditions, business interruptions, expenditures, labor disputes, and severe weather or other natural occurrences; competition from other service providers; changes in technology and new entrants; professional driver and technician shortages resulting in higher procurement costs and turnover rates; impact of supply chain disruptions; higher than expected bad debt reserves or write-offs; decrease in credit ratings; increased debt costs; adequacy of accounting estimates; our ability to effectively and efficiently integrate acquisitions into our business; 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, including our depreciation policy; unanticipated changes in fuel and alternative energy prices; unanticipated currency exchange rate fluctuations; fluctuations 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 most comparable GAAP measure to the non-GAAP financial measure and the reasons why management believes the measure is important 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 Form 8-K filed with the SEC as of the date of this release, which are available at investors.ryder.com.

CONFERENCE CALL AND WEBCAST INFORMATION

Ryder’s earnings conference call and webcast is scheduled for October 24, 2024 at 11:00 a.m. ET. To join, click here.

LIVE AUDIO VIA PHONE

Toll Free Number:

888-394-8218

USA Toll Number:

323-994-2093

Audio Passcode:

Ryder

Conference Leader:

Calene Candela

WEBCAST REPLAY

An audio replay including the slide presentation will be available within four hours following the call. Click here then select Financials/Quarterly Results and the date.

ryder-financial

RYDER SYSTEM, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

(In millions, except per share amounts)

 

2024

 

2023

 

2024

 

2023

Services revenue

 

$

2,097

 

 

1,799

 

 

$

6,248

 

 

5,399

 

Lease & related maintenance and rental revenues

 

 

960

 

 

986

 

 

 

2,844

 

 

2,941

 

Fuel services revenue

 

 

111

 

 

139

 

 

 

355

 

 

420

 

Total revenues

 

 

3,168

 

 

2,924

 

 

 

9,447

 

 

8,760

 

 

 

 

 

 

 

 

 

 

Cost of services

 

 

1,774

 

 

1,524

 

 

 

5,311

 

 

4,638

 

Cost of lease & related maintenance and rental

 

 

646

 

 

666

 

 

 

1,960

 

 

2,001

 

Cost of fuel services

 

 

108

 

 

137

 

 

 

344

 

 

412

 

Selling, general and administrative expenses

 

 

368

 

 

347

 

 

 

1,113

 

 

1,053

 

Non-operating pension costs, net

 

 

10

 

 

10

 

 

 

31

 

 

30

 

Used vehicle sales, net

 

 

(15

)

 

(47

)

 

 

(54

)

 

(174

)

Interest expense

 

 

98

 

 

75

 

 

 

286

 

 

212

 

Miscellaneous income, net

 

 

(10

)

 

(5

)

 

 

(29

)

 

(36

)

Currency translation adjustment loss

 

 

 

 

 

 

 

 

 

188

 

Restructuring and other items, net

 

 

1

 

 

4

 

 

 

5

 

 

(22

)

 

 

 

2,980

 

 

2,711

 

 

 

8,967

 

 

8,302

 

 

 

 

 

 

 

 

 

 

Earnings from continuing operations before income taxes

 

 

188

 

 

213

 

 

 

480

 

 

458

 

Provision for income taxes

 

 

45

 

 

53

 

 

 

126

 

 

176

 

Earnings from continuing operations

 

 

143

 

 

160

 

 

 

354

 

 

282

 

Earnings from discontinued operations, net of tax

 

 

(1

)

 

1

 

 

 

 

 

 

Net earnings

 

$

142

 

 

161

 

 

$

354

 

 

282

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share — Diluted

 

 

 

 

 

 

 

 

Continuing operations

 

$

3.25

 

 

3.44

 

 

$

7.96

 

 

6.01

 

Discontinued operations

 

 

(0.01

)

 

0.03

 

 

 

 

 

0.01

 

Net earnings (loss)

 

$

3.24

 

 

3.47

 

 

$

7.95

 

 

6.02

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding — Diluted

 

 

43.9

 

 

46.3

 

 

 

44.5

 

 

46.9

 

 

 

 

 

 

 

 

 

 

Diluted EPS from continuing operations

 

$

3.25

 

 

3.44

 

 

$

7.96

 

 

6.01

 

Non-operating pension costs, net

 

 

0.17

 

 

0.17

 

 

 

0.50

 

 

0.51

 

Acquisition costs

 

 

0.01

 

 

 

 

 

0.12

 

 

 

FMS U.K. exit

 

 

 

 

(0.03

)

 

 

 

 

(0.41

)

Currency translation adjustment loss

 

 

 

 

 

 

 

 

 

3.91

 

Other, net

 

 

0.01

 

 

 

 

 

(0.02

)

 

(0.02

)

Comparable EPS from continuing operations (1)

 

$

3.44

 

 

3.58

 

 

$

8.56

 

 

10.00

 

————————————

 

 

 

 

 

 

 

 

(1) Non-GAAP financial measure. A reconciliation of GAAP EPS from continuing operations to comparable EPS from continuing operations is set forth in this table.

 

Note: Amounts may not be additive due to rounding.

RYDER SYSTEM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

 

(In millions)

 

September 30,
2024

 

December 31,
2023

Assets:

 

 

 

 

Cash and cash equivalents

 

$

162

 

204

Other current assets

 

 

2,219

 

2,061

Revenue earning equipment, net

 

 

9,091

 

8,892

Operating property and equipment, net

 

 

1,197

 

1,217

Other assets

 

 

3,828

 

3,404

 

 

$

16,497

 

15,778

 

 

 

 

 

Liabilities and shareholders' equity:

 

 

 

 

Current liabilities

 

$

2,236

 

2,066

Total debt (including current portion)

 

 

7,603

 

7,114

Other non-current liabilities (including deferred income taxes)

 

 

3,602

 

3,529

Shareholders' equity

 

 

3,056

 

3,069

 

 

$

16,497

 

15,778

SELECTED KEY RATIOS AND METRICS

 

 

 

September 30,
2024

 

December 31,
2023

Debt to equity

 

249%

 

232%

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

(In millions)

 

2024

 

2023

 

2024

 

2023

Comparable EBITDA (1)

 

$

716

 

 

680

 

$

2,056

 

1,982

Effective interest rate

 

 

5.3

%

 

4.6

%

 

5.2

%

4.4

%
 

 

Nine months ended September 30,

(In millions)

2024

 

2023

Net cash provided by operating activities from continuing operations

$

1,707

 

1,842

 

Free cash flow (1)

 

218

 

32

 

Capital expenditures paid

 

1,922

 

2,457

 

Gross capital expenditures

 

1,986

 

2,582

 

 

 

Twelve months ended September 30,

 

2024

 

2023

Adjusted ROE (2)

16%

 

21%

————————————

(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

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

(In millions)

 

2024

 

2023

 

Change

 

2024

 

2023

 

Change

Total Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Fleet Management Solutions:

 

 

 

 

 

 

 

 

 

 

 

 

ChoiceLease

 

$

857

 

 

799

 

 

7%

 

$

2,556

 

 

2,356

 

 

8%

Commercial rental

 

 

251

 

 

293

 

 

(15)%

 

 

726

 

 

898

 

 

(19)%

SelectCare and other

 

 

173

 

 

174

 

 

—%

 

 

526

 

 

528

 

 

—%

Fuel services revenue

 

 

189

 

 

221

 

 

(15)%

 

 

595

 

 

667

 

 

(11)%

Fleet Management Solutions

 

 

1,470

 

 

1,487

 

 

(1)%

 

 

4,403

 

 

4,449

 

 

(1)%

Supply Chain Solutions

 

 

1,317

 

 

1,194

 

 

10%

 

 

3,960

 

 

3,574

 

 

11%

Dedicated Transportation Solutions

 

 

633

 

 

448

 

 

41%

 

 

1,831

 

 

1,342

 

 

36%

Eliminations

 

 

(252

)

 

(205

)

 

23%

 

 

(747

)

 

(605

)

 

23%

Total revenue

 

$

3,168

 

 

2,924

 

 

8%

 

$

9,447

 

 

8,760

 

 

8%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenue: (1)

 

 

 

 

 

 

 

 

 

 

 

 

Fleet Management Solutions

 

$

1,281

 

 

1,266

 

 

1%

 

$

3,808

 

 

3,782

 

 

1%

Supply Chain Solutions

 

 

996

 

 

909

 

 

10%

 

 

2,958

 

 

2,653

 

 

11%

Dedicated Transportation Solutions

 

 

486

 

 

325

 

 

49%

 

 

1,397

 

 

974

 

 

43%

Eliminations

 

 

(170

)

 

(121

)

 

40%

 

 

(514

)

 

(358

)

 

44%

Operating revenue

 

$

2,593

 

 

2,379

 

 

9%

 

$

7,649

 

 

7,051

 

 

8%

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Segment Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from continuing operations before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Fleet Management Solutions

 

$

132

 

 

169

 

 

(22)%

 

$

365

 

 

531

 

 

(31)%

Supply Chain Solutions

 

 

93

 

 

81

 

 

14%

 

 

242

 

 

174

 

 

39%

Dedicated Transportation Solutions

 

 

36

 

 

28

 

 

31%

 

 

91

 

 

90

 

 

1%

Eliminations

 

 

(34

)

 

(23

)

 

46%

 

 

(97

)

 

(73

)

 

34%

 

 

 

227

 

 

255

 

 

(11)%

 

 

601

 

 

722

 

 

(17)%

Unallocated Central Support Services

 

 

(17

)

 

(20

)

 

(13)%

 

 

(52

)

 

(54

)

 

(2)%

Intangible amortization expense

 

 

(11

)

 

(8

)

 

33%

 

 

(33

)

 

(25

)

 

28%

Non-operating pension costs, net

 

 

(10

)

 

(10

)

 

1%

 

 

(31

)

 

(30

)

 

1%

Other items impacting comparability, net

 

 

(1

)

 

(4

)

 

NM

 

 

(5

)

 

(155

)

 

NM

Earnings from continuing operations before income taxes

 

 

188

 

 

213

 

 

(12)%

 

 

480

 

 

458

 

 

5%

Provision for income taxes

 

 

45

 

 

53

 

 

(15)%

 

 

126

 

 

176

 

 

(28)%

Earnings from continuing operations

 

$

143

 

 

160

 

 

(10)%

 

$

354

 

 

282

 

 

26%

————————————

 

 

(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

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

(In millions)

 

2024

 

2023

 

Change

 

2024

 

2023

 

Change

Fleet Management Solutions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FMS total revenue

 

$

1,470

 

 

1,487

 

 

(1)%

 

$

4,403

 

 

4,449

 

 

(1)%

Fuel services revenue (1)

 

 

(189

)

 

(221

)

 

(15)%

 

 

(595

)

 

(667

)

 

(11)%

FMS operating revenue (2)

 

$

1,281

 

 

1,266

 

 

1%

 

$

3,808

 

 

3,782

 

 

1%

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment earnings before income taxes

 

$

132

 

 

169

 

 

(22)%

 

$

365

 

 

531

 

 

(31)%

 

 

 

 

 

 

 

 

 

 

 

 

 

FMS earnings before income taxes as % of FMS total revenue

 

9.0%

 

11.4%

 

 

 

8.3%

 

11.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FMS earnings before income taxes as % of FMS operating revenue (2)

 

10.3%

 

13.4%

 

 

 

9.6%

 

14.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2024

 

2023

 

Change

 

2024

 

2023

 

Change

Supply Chain Solutions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCS total revenue

 

$

1,317

 

 

1,194

 

 

10%

 

$

3,960

 

 

3,574

 

 

11%

Subcontracted transportation and fuel

 

 

(321

)

 

(285

)

 

13%

 

 

(1,002

)

 

(921

)

 

9%

SCS operating revenue (2)

 

$

996

 

 

909

 

 

10%

 

$

2,958

 

 

2,653

 

 

11%

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment earnings before income taxes

 

$

93

 

 

81

 

 

14%

 

$

242

 

 

174

 

 

39%

 

 

 

 

 

 

 

 

 

 

 

 

 

SCS earnings before income taxes as % of SCS total revenue

 

7.0%

 

6.8%

 

 

 

6.1%

 

4.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCS earnings before income taxes as % of SCS operating revenue (2)

 

9.3%

 

9.0%

 

 

 

8.2%

 

6.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2024

 

2023

 

Change

 

2024

 

2023

 

Change

Dedicated Transportation Solutions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DTS total revenue

 

$

633

 

 

448

 

 

41%

 

$

1,831

 

 

1,342

 

 

36%

Subcontracted transportation and fuel

 

 

(147

)

 

(123

)

 

20%

 

 

(434

)

 

(368

)

 

18%

DTS operating revenue (2)

 

$

486

 

 

325

 

 

49%

 

$

1,397

 

 

974

 

 

43%

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment earnings before income taxes

 

$

36

 

 

28

 

 

31%

 

$

91

 

 

90

 

 

1%

 

 

 

 

 

 

 

 

 

 

 

 

 

DTS earnings before income taxes as % of DTS total revenue

 

5.8%

 

6.2%

 

 

 

5.0%

 

6.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DTS earnings before income taxes as % of DTS operating revenue (2)

 

7.5%

 

8.5%

 

 

 

6.5%

 

9.3%

 

 

————————————

 

 

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

(2) Non-GAAP financial measure. A reconciliation of (1) GAAP total revenue to operating revenue for each business segment (FMS, SCS and DTS) and (2) segment earnings before taxes (EBT) as % of segment total revenue to segment EBT as % of segment operating revenue for each business segment is set forth in this table.

 

 

Note: Amounts may not be additive due to rounding.

RYDER SYSTEM, INC. AND SUBSIDIARIES

BUSINESS SEGMENT INFORMATION - UNAUDITED

KEY PERFORMANCE INDICATORS

 

Our North America fleet of owned and leased revenue earning equipment and SelectCare vehicles, including vehicles under on-demand maintenance and used vehicles sold, is summarized as follows (number of units rounded to the nearest hundred):

 

 

 

Three months ended

September 30,

 

Nine months ended

September 30,

 

2024/2023

 

 

2024

 

2023

 

2024

 

2023

 

Three Months

 

Nine Months

ChoiceLease

 

 

 

 

 

 

 

 

 

 

 

 

Average fleet count

 

145,300

 

 

139,200

 

 

144,800

 

 

137,400

 

 

4%

 

5%

End of period fleet count

 

145,800

 

 

139,300

 

 

145,800

 

 

139,300

 

 

5%

 

5%

Average active fleet count (1)

 

136,200

 

 

130,500

 

 

136,100

 

 

129,600

 

 

4%

 

5%

End of period active fleet count (1)

 

135,300

 

 

130,500

 

 

135,300

 

 

130,500

 

 

4%

 

4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial rental

 

 

 

 

 

 

 

 

 

 

 

 

Average fleet count

 

35,000

 

 

38,700

 

 

35,400

 

 

40,000

 

 

(10)%

 

(12)%

End of period fleet count

 

34,700

 

 

37,900

 

 

34,700

 

 

37,900

 

 

(8)%

 

(8)%

Rental utilization - power units (2)

 

71

%

 

75

%

 

69

%

 

75

%

 

(400)bps

 

(600)bps

Rental rate change - % (3)

 

(1

)%

 

1

%

 

(1

)%

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer vehicles under SelectCare contracts

 

 

 

 

 

 

 

 

 

 

 

 

Average fleet count

 

49,000

 

 

52,100

 

 

50,200

 

 

52,900

 

 

(6)%

 

(5)%

End of period fleet count

 

47,900

 

 

52,300

 

 

47,900

 

 

52,300

 

 

(8)%

 

(8)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer vehicles under SCS contracts

 

 

 

 

 

 

 

 

 

 

 

 

End of period fleet count (4)

 

12,600

 

 

14,100

 

 

12,600

 

 

14,100

 

 

(11)%

 

(11)%

End of period power vehicles (4)

 

3,800

 

 

4,200

 

 

3,800

 

 

4,200

 

 

(10)%

 

(10)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer vehicles under DTS contracts

 

 

 

 

 

 

 

 

 

 

 

 

End of period fleet count (4)

 

19,200

 

 

11,100

 

 

19,200

 

 

11,100

 

 

73%

 

73%

End of period power vehicles (4)

 

7,400

 

 

5,200

 

 

7,400

 

 

5,200

 

 

42%

 

42%

 

 

 

 

 

 

 

 

 

 

 

 

 

Used vehicle sales (UVS)

 

 

 

 

 

 

 

 

 

 

 

 

End of period fleet count

 

9,100

 

 

7,800

 

 

9,100

 

 

7,800

 

 

17%

 

17%

Used vehicles sold

 

4,700

 

 

6,500

 

 

17,200

 

 

17,000

 

 

(28)%

 

1%

UVS pricing change (5)

 

 

 

 

 

 

 

 

 

 

 

 

Tractors

 

(22

)%

 

(31

)%

 

(25

)%

 

(35

)%

 

 

 

 

Trucks

 

(19

)%

 

(30

)%

 

(25

)%

 

(27

)%

 

 

 

 

————————————

(1) Active fleet count is calculated as those units currently earning revenue and not classified as not yet earning or no longer earning units.

(2) Rental utilization is calculated using the number of days units are rented divided by the number of days units available to rent based on the days in a calendar year (excluding trailers).

(3) Represents percentage change compared to prior year period in average rental rate per day on power units using constant currency.

(4) These vehicle counts are also included within the fleet counts for ChoiceLease, Commercial rental and SelectCare.

(5) Represents percentage change 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 or each business segment (FMS, SCS and DTS) excluding any (1) fuel and (2) subcontracted transportation. We use operating revenue 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.

Comparable Earnings Measures:

Comparable Earnings before

Income Taxes (EBT)

 

Comparable Earnings

 

Comparable Earnings per Diluted

Common Share (EPS)

 

Comparable Tax Rate

 

Adjusted Return on Equity

(ROE)

 

Comparable EBT, Comparable Earnings and Comparable EPS are defined, respectively, as GAAP EBT, earnings and EPS, all from continuing operations, excluding (1) non-operating pension costs, net and (2) other items impacting comparability (as further described below). We believe these non-GAAP measures provide useful information to investors and allow for better year-over-year comparison of operating performance.

 

Non-operating pension costs, net: Our comparable earnings measures exclude non-operating pension costs, net, which include the amortization of net actuarial loss and prior service cost, interest cost and expected return on plan assets components of pension and postretirement benefit costs, as well as any significant charges for settlements or curtailments if recognized. We exclude non-operating pension costs, net because we consider these to be impacted by financial market performance and outside the operational performance of our business.

 

Other Items Impacting Comparability: Our comparable and adjusted earnings measures also exclude other significant items that are not representative of our business operations and vary from period to period.

 

Comparable Tax Rate is computed using the same methodology as the GAAP provision for income taxes. Income tax effects of non-GAAP adjustments are calculated based on the marginal tax rates to which the non-GAAP adjustments are related.

 

Adjusted ROE is defined as adjusted net earnings divided by adjusted average shareholders' equity and represents the rate of return on shareholders' investment. Other items impacting comparability described above are excluded, as applicable, from the calculation of adjusted net earnings and adjusted average shareholders' equity. We also exclude any significant charges for pension settlements or curtailments from the calculation of adjusted net earnings. We use adjusted ROE as an internal measure of how effectively we use the owned capital invested in our operations.

Comparable Earnings Before

Interest, Taxes, Depreciation and

Amortization (EBITDA)

Comparable EBITDA is defined as net earnings, first adjusted to exclude discontinued operations and the following items, all from continuing operations: (1) non-operating pension costs, net and (2) any other items that are not representative of our business operations (these items are the same items that are excluded from comparable earnings measures for the relevant periods as described immediately above) and then adjusted further for (1) interest expense, (2) income taxes, (3) depreciation, (4) used vehicle sales results and (5) amortization.

 

We believe comparable EBITDA provides investors with useful information, as it is a standard measure commonly reported and widely used by investors and other interested parties to measure financial performance and our ability to service debt and meet our payment obligations. We believe that the inclusion of comparable EBITDA also provides consistency in financial reporting and aids investors in performing meaningful comparisons of past, present and future operating results. Our presentation of comparable EBITDA may not be comparable to similarly-titled measures used by other companies.

 

Comparable EBITDA should not be considered a substitute for, or superior to, the measures of financial performance determined in accordance with GAAP.

Cash Flow Measures:

Total Cash Generated

 

Free Cash Flow

 

We consider total cash generated and free cash flow to be important measures of comparative operating performance, as our principal sources of operating liquidity are cash from operations and proceeds from the sale of revenue earning equipment.

 

Total Cash Generated is defined as the sum of (1) net cash provided by operating activities, (2) net cash provided by the sale of revenue earning equipment, (3) net cash provided by the sale of operating property and equipment and (4) other cash inflows from investing activities. We believe total cash generated is an important measure of total cash flows generated from our ongoing business activities.

 

Free Cash Flow is defined as the net amount of cash generated from operating activities and investing activities (excluding acquisitions) from continuing operations. We calculate free cash flow as the sum of (1) net cash provided by operating activities, (2) net cash provided by the sale of revenue earning equipment and operating property and equipment, and (3) other cash inflows from investing activities, less (4) purchases of property and revenue earning equipment. We believe free cash flow provides investors with an important perspective on the cash available for debt service and for shareholders, after making capital investments required to support ongoing business operations. Our calculation of free cash flow may be different from the calculation used by other companies and, therefore, comparability may be limited.

RYDER SYSTEM, INC. AND SUBSIDIARIES

APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED

 

OPERATING REVENUE RECONCILIATION

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

(In millions)

 

2024

 

2023

 

2024

 

2023

Total revenue

 

$

3,168

 

 

2,924

 

 

$

9,447

 

 

8,760

 

Subcontracted transportation and fuel

 

 

(575

)

 

(545

)

 

 

(1,798

)

 

(1,709

)

Operating revenue (1)

 

$

2,593

 

 

2,379

 

 

$

7,649

 

 

7,051

 

TOTAL CASH GENERATED / FREE CASH FLOW RECONCILIATION

 

 

 

 

 

 

Nine months ended September 30,

(In millions)

 

2024

 

2023

Net cash provided by operating activities from continuing operations

 

$

1,707

 

 

1,842

 

Proceeds from sales (primarily revenue earning equipment) (2)

 

 

433

 

 

647

 

Total cash generated (1)

 

 

2,140

 

 

2,489

 

Purchases of property and revenue earning equipment (2)

 

 

(1,922

)

 

(2,457

)

Free cash flow (1)

 

$

218

 

 

32

 

————————————

 

(1) Non-GAAP financial measure.

 

(2) Included in cash flows from investing activities

 

 

Note: Amounts may not be additive due to rounding.

 

COMPARABLE EARNINGS RECONCILIATION

 

 

Three months ended September 30,

 

Nine months ended September 30,

(In millions)

 

2024

 

2023

 

2024

 

2023

Earnings from continuing operations

 

$

143

 

 

160

 

 

$

354

 

 

282

 

Non-operating pension costs, net

 

 

7

 

 

8

 

 

 

22

 

 

24

 

Acquisition costs

 

 

1

 

 

 

 

 

5

 

 

 

FMS U.K. exit

 

 

 

 

(3

)

 

 

 

 

(20

)

Currency translation adjustment loss

 

 

 

 

 

 

 

 

 

183

 

Other, net

 

 

 

 

 

 

 

(1

)

 

(1

)

Comparable earnings from continuing operations (1) (2)

 

$

151

 

 

165

 

 

$

381

 

 

468

 

 

 

 

 

 

 

 

 

 

Tax rate on continuing operations

 

 

24.0

%

 

25.2

%

 

 

26.2

%

 

38.5

%

Tax adjustments and income tax effects of non-GAAP

adjustments (2)

 

 

(0.1

)%

 

1.8

%

 

 

(0.1

)%

 

(11.3

)%

Comparable tax rate on continuing operations (2)

 

 

23.9

%

 

27.0

%

 

 

26.1

%

 

27.2

%

————————————

 

 

(1) 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.

(2) Non-GAAP financial measure.

 

 

Note: Amounts may not be additive due to rounding.

RYDER SYSTEM, INC. AND SUBSIDIARIES

APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED

 

ADJUSTED RETURN ON EQUITY RECONCILIATION

 

 

 

 

 

 

Twelve months ended September 30,

(Dollars in millions)

 

2024

 

2023

Net earnings

 

$

477

 

 

488

 

Other items impacting comparability

 

 

7

 

 

128

 

Tax impact (1)

 

 

 

 

25

 

Adjusted net earnings

 

$

484

 

 

641

 

 

 

 

 

 

Average shareholders' equity

 

$

3,074

 

 

3,029

 

Average adjustments to shareholders' equity (2)

 

 

(3

)

 

(21

)

Adjusted average shareholders' equity

 

$

3,071

 

 

3,008

 

 

 

 

 

 

Adjusted return on equity (3)

 

16%

 

21%

————————————

(1) Represents income taxes on other items impacting comparability.

(2) Represents the impact of other items impacting comparability, net of tax, to equity for the respective periods.

(3) Adjusted return on equity is calculated by dividing Adjusted net earnings into Adjusted average shareholders' equity.

RYDER SYSTEM, INC. AND SUBSIDIARIES

APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED

 

 

 

 

 

COMPARABLE EARNINGS BEFORE INCOME TAXES / COMPARABLE EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION RECONCILIATION

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

(In millions)

 

2024

 

2023

 

2024

 

2023

Net earnings

 

$

142

 

 

161

 

 

$

354

 

 

282

 

Loss (earnings) from discontinued operations, net of tax

 

 

1

 

 

(1

)

 

 

 

 

 

Provision for income taxes

 

 

45

 

 

53

 

 

 

126

 

 

176

 

EBT

 

 

188

 

 

213

 

 

 

480

 

 

458

 

Non-operating pension costs, net

 

 

10

 

 

10

 

 

 

31

 

 

30

 

Acquisition costs

 

 

1

 

 

 

 

 

6

 

 

 

FMS U.K. exit, primarily net commercial claim proceeds

 

 

 

 

4

 

 

 

 

 

(32

)

Currency translation adjustment loss

 

 

 

 

 

 

 

 

 

188

 

Other, net

 

 

 

 

 

 

 

(1

)

 

(1

)

Comparable EBT (1)

 

 

199

 

 

227

 

 

 

516

 

 

643

 

Interest expense

 

 

98

 

 

75

 

 

 

286

 

 

212

 

Depreciation

 

 

423

 

 

417

 

 

 

1,275

 

 

1,274

 

Used vehicle sales, net

 

 

(15

)

 

(47

)

 

 

(54

)

 

(172

)

Amortization

 

 

11

 

 

8

 

 

 

33

 

 

25

 

Comparable EBITDA

 

$

716

 

 

680

 

 

$

2,056

 

 

1,982

 

————————————

(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

 

OPERATING REVENUE GROWTH FORECAST RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

(In millions)

 

Twelve months ended December 31,

 

 

2024

 

2023

 

Change

Total revenue

 

$

12,600

 

 

11,783

 

 

7%

Subcontracted transportation and fuel

 

 

(2,380

)

 

(2,286

)

 

4%

Operating revenue (1)

 

$

10,220

 

 

9,497

 

 

8%

COMPARABLE EARNINGS PER SHARE FORECAST RECONCILIATION

 

 

 

 

 

 

 

 

 

(In millions, except per share amounts)

 

Fourth Quarter 2024

 

Full Year 2024

EPS from continuing operations

 

$3.13 - $3.33

 

$11.10 - $11.30

Non-operating pension costs

 

0.19

 

0.74

Restructuring and other, net

 

 

0.05

Comparable EPS from continuing operations forecast (1)

 

$3.32 - $3.52

 

$11.90 - $12.10

TOTAL CASH GENERATED / FREE CASH FLOW FORECAST RECONCILIATION

 

 

 

 

 

(In millions)

 

2024 Forecast

Net cash provided by operating activities from continuing operations

 

$

2,400

 

Proceeds from sales (primarily revenue earning equipment) (2)

 

 

600

 

Total cash generated (1)

 

 

3,000

 

 

 

 

Purchases of property and revenue earning equipment (2) (3)

 

 

(2,800

)

Free cash flow (1)

 

$

200

 

————————————

(1) Non-GAAP financial measure.

(2) Included in cash flows from investing activities.

(3) Amount updated to correct typographical error.

RYDER SYSTEM, INC. AND SUBSIDIARIES

APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED

 

ADJUSTED RETURN ON EQUITY FORECAST RECONCILIATION

 

 

 

 

 

(In millions)

 

2024 Forecast

Net earnings

 

$

495

 

Other items impacting comparability

 

 

5

 

Adjusted net earnings for ROE (numerator) (1) [A]

 

$

500

 

 

 

 

Average shareholders' equity [B]

 

$

3,075

 

 

 

 

Adjusted return on equity (1) [A]/[B]

 

 

16

%

————————————

(1) 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.

 

Note: Amounts may not be additive due to rounding.

 

Media:

Amy Federman

afederman@ryder.com

Investor Relations:

Calene Candela

ccandela@ryder.com

Source: Ryder System, Inc.

FAQ

What was Ryder's (R) Q3 2024 earnings per share?

Ryder reported Q3 2024 GAAP EPS of $3.25 and comparable EPS of $3.44, compared to $3.44 and $3.58 respectively in the prior year.

How much revenue did Ryder (R) generate in Q3 2024?

Ryder generated total revenue of $3.2 billion in Q3 2024, up 8% from $2.9 billion in Q3 2023, with operating revenue of $2.6 billion, up 9%.

What is Ryder's (R) full-year 2024 EPS guidance?

Ryder reaffirmed its full-year 2024 guidance with comparable EPS of $11.90-$12.10 and GAAP EPS of $11.10-$11.30.

How did Ryder's (R) used vehicle sales perform in Q3 2024?

Ryder's used truck prices declined 19% and tractor prices fell 22% from the prior year, with sequential truck pricing up 4% but tractor pricing down 12%.

Ryder System, Inc.

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