- Third Quarter EPS of $1.06, Includes a $0.06 One-Time Pension Charge
- Comparable EPS of $1.12 Increases 14%
- Revenue Up 9%; Operating Revenue Grows 7%
- Full Year EPS Forecast $4.01 to $4.06
MIAMI, Oct. 25 /PRNewswire-FirstCall/ -- Ryder System, Inc. (NYSE: R),
a global leader in transportation and supply chain management solutions,
today reported earnings per diluted share (EPS) of $1.06 for the
three-month period ended September 30, 2006, up 8% compared with $0.98 in
the year-earlier period. Earnings in the current period included a
one-time, non-cash after- tax charge of $3.5 million to adjust the
accounting for certain pension costs. Excluding this charge, EPS was up 14%
to $1.12, compared with the Company's previous EPS forecast range of $1.05
to $1.10 for the third quarter of 2006. EPS improvement reflects better
business segment results and the impact of a stock repurchase program
completed in February of 2006.
Net earnings for the third quarter of 2006 were $65.3 million compared
with $63.3 million in the year-earlier period. Excluding the pension
accounting charge, earnings were up 9% to $68.8 million driven by better
operating performance and continuing leverage from revenue growth in the
Supply Chain Solutions (SCS) and Dedicated Contract Carriage (DCC)
segments.
Revenue for the third quarter of 2006 was $1.62 billion, up 9% from
$1.49 billion in the comparable period last year with all business segments
reporting revenue growth. Operating revenue (revenue excluding fuel and
subcontracted transportation) was $1.14 billion, up 7% compared with $1.07
billion in the year-earlier period. Fleet Management Solutions (FMS)
business segment revenue grew 5% driven by higher fuel services revenue and
full service lease contract growth. SCS business segment revenue grew 19%
in the third quarter of 2006 driven by higher volumes and new and expanded
business in all industry groups, and an increase in managed subcontracted
transportation. DCC business segment revenue increased 5% due to new and
expanded business, and pricing increases associated with higher fuel costs.
Earnings for the third quarter of 2006 were negatively affected by a
one- time, non-cash after-tax charge of $3.5 million recorded to adjust the
accounting for prior service costs related to retiree pension benefit
improvements made in 1995 and 2000. During the quarter, the Company
determined that these costs had not been amortized over the appropriate
periods; however, the amounts involved were not material to the Company's
financial statements in any individual prior period. The adjustment
recorded resulted in a cumulative correction that reduced earnings for the
quarter.
"We delivered a 14% increase in comparable EPS from 7% higher operating
revenue, reflecting continued strong earnings on accelerated contractual
revenue growth," said Ryder Chairman and Chief Executive Officer Greg
Swienton. "We were particularly pleased with the revenue and earnings
growth across all industries of our supply chain business, including
automotive, industrial, and notably strong performance within the high-tech
and consumer sectors."
Year-to-Date Operating Results
Revenue for the nine months ended September 30, 2006 was $4.71 billion,
up 12% from $4.20 billion in the same period of 2005. Operating revenue
(revenue excluding fuel and subcontracted transportation) for the first
nine months of 2006 was $3.31 billion, up 6% from $3.12 billion in the same
period of 2005. Ryder's 2006 year-to-date net earnings were $183.1 million,
compared with $168.1 million in the year-earlier period. EPS was $2.97
through the first nine months of 2006 compared with $2.60 for the same
period of 2005. EPS included an $0.11 income tax benefit related to a
change in Texas and Canada income tax laws in 2006 and a $0.12 income tax
benefit related to a change in Ohio income tax laws in 2005. Excluding the
income tax benefits in both years and the previously discussed pension
accounting charge, comparable year-to- date net earnings were up 12% to
$179.9 million, and EPS was up 17% to $2.91, compared with the year-earlier
period.
Third Quarter Business Segment Operating Results
Ryder's primary measurement of business segment financial performance,
Net Before Tax (NBT), allocates Central Support Services to each business
segment.
Fleet Management Solutions
Ryder's Fleet Management Solutions (FMS) business segment combines
several capabilities into a comprehensive package that provides one-stop
outsourcing of the acquisition, maintenance, management, and disposal of
vehicles. Ryder's commercial rental service offers customers a method to
expand their fleets in order to address short-term capacity needs.
In the FMS business segment, revenue in the third quarter of 2006 was
$1.06 billion, up 5% compared with $1.01 billion in the year-earlier
period. Fuel services revenue for the third quarter of 2006 increased 10%
compared with the same period in 2005 due primarily to higher fuel pricing
as a result of market cost increases. Operating revenue (revenue excluding
fuel) in the third quarter of 2006 was $750.1 million, up 3% compared with
$728.6 million in the year-earlier period. Full service lease revenue for
the quarter was up 4% from the same period last year reflecting growth in
all geographic markets. In the quarter, contract maintenance revenue
increased 10% due to new sales activity, and contract-related maintenance
revenue grew 4% from increased transactional business. Commercial rental
revenue decreased 1% from the year- earlier period, reflecting a decline in
rental fleet utilization.
The FMS business segment's NBT increased to $103.7 million in the third
quarter of 2006, up 1% compared with $102.6 million in the same period of
2005. This improvement was related primarily to better North American lease
and contract maintenance performance and lower depreciation costs. Those
results were offset partially by higher marketing expenses, sales force and
other compensation-related expenses in North America. Interest expense
increased due primarily to planned higher debt levels to support investment
in the contractual full service lease fleet, and higher leverage from share
repurchases. Business segment NBT as a percentage of operating revenue was
13.8% in the third quarter of 2006, down 30 basis points compared with
14.1% in the same quarter a year ago.
Supply Chain Solutions
Ryder's Supply Chain Solutions (SCS) business segment enables customers
to improve shareholder value and their customers' satisfaction by enhancing
supply chain performance and reducing costs. The solutions involve
management of the logistics pipeline as a synchronized, integrated process
- from raw material supply to finished goods distribution. By improving
business processes and employing new technologies, the flow of goods and
cash is made faster and consumes less capital.
In the SCS business segment, third quarter 2006 revenue totaled $513.8
million, up 19% from $433.4 million in the comparable period in 2005.
Revenue grew primarily due to higher volumes and new and expanded business
in all industry groups, and an increase in managed subcontracted
transportation. Third quarter 2006 operating revenue (revenue excluding
subcontracted transportation) was $299.1 million, up 18% compared with
$254.3 million in the year-earlier period.
The SCS business segment's NBT was $16.4 million in the third quarter
of 2006, up 54% from $10.6 million in the same quarter of 2005. The
earnings increase was due to higher volumes and new and expanded business
in all U.S. industry groups and better margins in the Company's Brazil
operations. Third quarter 2006 NBT for the business segment as a percentage
of operating revenue was up 130 basis points at 5.5%, compared with 4.2% in
the same quarter of 2005.
Dedicated Contract Carriage
Ryder's Dedicated Contract Carriage (DCC) business segment provides
customers with vehicles, drivers, management, and administrative support,
with the assets committed to a specific customer for a contractual term.
DCC supports customers with both basic and sophisticated logistics and
transportation needs including routing and scheduling, specialized driver
services, and logistical engineering support.
In the DCC business segment, third quarter 2006 revenue totaled $146.4
million, up 5% compared with $139.0 million in the third quarter of 2005.
Operating revenue (revenue excluding subcontracted transportation) in the
third quarter of 2006 was $140.7 million, up 5% from $134.6 million in the
year-earlier period. Revenue increased due to new and expanded business, as
well as higher fuel costs passed through to customers.
The DCC business segment's NBT in the third quarter of 2006 was $11.7
million, up 27% compared with $9.2 million in the third quarter of 2005.
Business segment NBT was positively impacted by new and expanded business
and lower safety costs. Business segment NBT as a percentage of operating
revenue was 8.3% in the third quarter of 2006, up 150 basis points from
6.8% in the year-earlier period.
Corporate Financial Information
Central Support Services
Central Support Services (CSS) are overhead costs incurred to support
all business segments and product lines. Substantially all CSS costs are
allocated to the various business segments. In the third quarter of 2006,
CSS costs were flat at $49.1 million, as lower information technology
spending, principally from ongoing cost containment initiatives, was offset
by higher share-based compensation from the expensing of stock options and
incentive compensation.
Capital Expenditures
In Ryder's business, capital expenditures are generally used to
purchase revenue-earning equipment (trucks, tractors, and trailers)
primarily to support the full service lease product line and secondarily to
support the commercial rental product line within Ryder's Fleet Management
Solutions business segment. The level of capital required to support the
full service lease product line varies directly with customer contract
signings for replacement vehicles and growth. These contracts are long-term
agreements that result in predictable revenues and cash flows to Ryder
typically over a three- to ten-year term. The commercial rental product
line utilizes capital for the purchase of vehicles to replenish and expand
the Company's fleet available for shorter-term use by contractual or
occasional customers.
Capital expenditures were $1.26 billion for the nine-month period ended
September 30, 2006, compared with $1.15 billion in the same period of 2005.
Net capital expenditures (including proceeds from the sale of assets) were
$1.01 billion for the first nine months of 2006, up from $894.8 million in
the same period of 2005. The increase in capital expenditures reflects
higher lease vehicle spending for replacement and expansion of customer
fleets.
Cash Flow and Leverage
Operating cash flow through September 30, 2006 was $611.6 million, up
30% from $470.8 million in the same period of 2005. Total cash generated
(including proceeds from used vehicle sales) through September 30, 2006,
was $921.9 million, up 19% from $773.1 million in the same period of 2005.
Free cash flow through September 30, 2006 was negative $253.8 million
compared with negative $347.8 million for the year-earlier period. The
improvement was due primarily to lower income tax payments, as the
year-earlier period included a $176 million payment related to the 1998 to
2000 tax years, offset partially by increased capital spending.
Balance sheet debt as of September 30, 2006 increased by $446.8 million
compared with year-end 2005, due primarily to increased capital spending
required to support contractual revenue growth, and the impact of share
repurchases. The leverage ratio for balance sheet debt as of September 30,
2006 was 160%, compared with 143% at year-end 2005. Total obligations to
equity as of September 30, 2006 were 166%, up from 151% at year-end 2005.
The Company's long-term target range for total obligations to equity is
250% to 300%, which largely reflects the liquidity of the Company's vehicle
portfolio and the substantial revenue component that is supported by
long-term customer contracts related to those assets.
Outlook
Commenting on Ryder's outlook, Mr. Swienton said, "Going forward, we
are focused on optimizing returns on our commercial rental fleet, while
accelerating the profitable growth of all of our contractual business
within Fleet Management Solutions. We are also committed to the profitable
growth of our offerings within Dedicated Contract Carriage and Supply Chain
Solutions, which are entirely contract-based."
He continued, "We are setting our full-year 2006 forecast range at
$4.01 to $4.06 per share including the $0.06 pension charge; this is based
on a reaffirmation of our fourth quarter 2006 EPS forecast in the range of
$1.05 to $1.10." Ryder's current full-year 2006 earnings forecast,
excluding the tax changes and pension charge, is raised to the range of
$3.96 to $4.01 per share.
About Ryder
Ryder provides leading-edge transportation, logistics and supply chain
management solutions worldwide. Ryder's product offerings range from full
service leasing, commercial rental and programmed maintenance of vehicles
to integrated services such as dedicated contract carriage and carrier
management. Additionally, Ryder offers comprehensive supply chain
solutions, consulting, lead logistics management services and e-Business
solutions that support customers' entire supply chains, from inbound raw
materials and parts through distribution and delivery of finished goods.
Ryder serves customer needs throughout North America, Latin America, Europe
and Asia.
The National Safety Council selected Ryder as the first transportation
company to receive the Green Cross for Safety Medal - its highest honor -
for exemplary commitment to workplace safety and corporate citizenship. For
the ninth consecutive year, Ryder has been named a top five third-party
logistics provider by Inbound Logistics.
Ryder's stock is a component of the Dow Jones Transportation Average
and the Standard & Poor's 500 Index. Ryder ranks 375th on the Fortune 500
and 1,433rd on the Forbes Global 2000.
For more information on Ryder System, Inc., visit http://www.ryder.com.
Note Regarding Forward-Looking Statements: Certain statements and
information included in this presentation are "forward-looking statements"
under the Federal Private Securities Litigation Reform Act of 1995.
Accordingly, these forward-looking statements should be evaluated with
consideration given to 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, among others, our ability to obtain
adequate profit margins for our services, our inability to maintain current
pricing levels due to customer acceptance or competition, customer
retention levels, unexpected volume declines, loss of key customers in the
Supply Chain Solutions (SCS) business segment, our failure to successfully
implement new sales growth initiatives in our FMS business segment,
unexpected reserves or write-offs due to the deterioration of the credit
worthiness or bankruptcy of certain customers in our SCS business segment,
changes in financial, tax or regulatory requirements or changes in
customers' business environments that will limit their ability to commit to
long-term vehicle leases, changes in market conditions affecting the
commercial rental market or the sale of used vehicles, the effect of severe
weather events, labor strikes or work stoppages affecting our or our
customers' business operations, adequacy of accounting estimates and
accruals particularly with respect to pension, taxes and revenue, changes
in general economic conditions, sudden changes in fuel prices, availability
of qualified drivers, our ability to manage our cost structure, new
accounting pronouncements, rules, or interpretations, changes in government
regulations including regulations regarding vehicle emissions and the risks
described in our filings with the Securities and Exchange Commission. 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 and the
attached financial schedules include certain non-GAAP financial measures as
defined under SEC rules. We have denoted each non-GAAP financial measure in
the attached financial schedules and have provided a reconciliation of each
such measure to the most comparable GAAP measure. Additional information
regarding non-GAAP financial measures can be found in our investor
presentation for the quarter and in our reports filed with the SEC, which
are available in the investors area of our website at http://www.ryder.com.
Conference Call and Webcast Information:
Ryder's earnings conference call and webcast is scheduled for
Wednesday, October 25, 2006, from 11:00 a.m. to 12:00 noon Eastern Time.
Speakers will be Chairman and Chief Executive Officer Greg Swienton and
Executive Vice President and Chief Financial Officer Mark Jamieson.
- To join the conference call live: Begin 10 minutes prior to the
conference by dialing the audio phone number 1-888-398-5319 (outside
U.S. dial 1-773-681-5795) using the Passcode: RYDER and Conference
Leader: Bob Brunn. Then, access the presentation via the Net
Conference website at http://www.mymeetings.com/nc/join/ using the Conference
Number: RG4527662 and Passcode: RYDER.
- To access audio replays of the conference and view a presentation of
Ryder's earnings results: Dial 1-800-510-9771 (outside U.S. dial
1-402-344-6800) and use the Passcode: 1025, then view the presentation
by visiting the Investors area of Ryder's website at http://www.ryder.com. A
podcast of the call will also be available online within 24 hours after
the end of the call.
RYDER SYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS - UNAUDITED
Periods ended September 30, 2006 and 2005
(In millions, except per share amounts)
Three Months Nine Months
2006 2005 2006 2005
Revenue $1,620.5 1,490.6 $4,712.6 4,196.1
Operating expense 700.0 657.2 2,064.1 1,902.6
Salaries and employee-related costs 354.2 314.6 1,035.7 928.6
Subcontracted transportation 220.4 183.5 637.9 425.1
Depreciation expense 188.0 188.1 549.6 556.3
Gains on vehicle sales, net (11.0) (12.3) (38.8) (38.1)
Equipment rental 25.4 25.2 76.3 77.3
Interest expense 36.4 31.3 102.9 89.1
Miscellaneous income, net (0.4) (2.1) (6.2) (7.4)
Restructuring and other charges
(recoveries), net 0.1 (0.4) (0.1) (0.6)
1,513.1 1,385.1 4,421.4 3,932.9
Earnings before income taxes 107.4 105.5 291.2 263.2
Provision for income taxes (42.1) (42.2) (108.1) (95.1)
Net earnings $65.3 63.3 $183.1 168.1
Earnings per common share -
Diluted:
Net earnings $1.06 0.98 $2.97 2.60
Weighted-average shares outstanding
- Diluted 61.7 64.5 61.7 64.8
Memo:
EPS Impact of pension accounting
(charge) $(0.06) - $(0.06) -
EPS Impact of tax changes - - 0.11 0.12
RYDER SYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
PRELIMINARY AND SUBJECT TO RECLASSIFICATION
(Dollars in millions)
(unaudited)
September 30, December 31,
2006 2005
Assets:
Cash and cash equivalents $128.1 128.7
Other current assets 1,249.8 1,035.1
Revenue earning equipment, net 4,303.9 3,794.4
Operating property and equipment,
net 497.5 486.8
Other assets 548.9 588.3
$6,728.2 6,033.3
Liabilities and shareholders' equity:
Short-term debt / current portion
of long-term debt $389.3 269.4
Other current liabilities 1,044.6 984.0
Long-term debt 2,242.9 1,916.0
Other non-current liabilities
(including deferred income taxes) 1,406.0 1,336.4
Shareholders' equity 1,645.4 1,527.5
$6,728.2 6,033.3
SELECTED KEY RATIOS
September 30, December 31,
2006 2005
Debt to equity 160% 143%
Total obligations to equity (a) * 166% 151%
Twelve months ended September 30,
2006 2005
Return on average shareholders' equity (b) 15.3% 15.1%
Return on average assets (b) 3.9% 4.0%
Return on capital* 8.0% 7.7%
(a) Total obligations represent debt plus off-balance sheet equipment
obligations.
(b) Includes discontinued operations and the effect of accounting
changes.
* Non-GAAP financial measure; see reconciliation to closest GAAP
financial measure included within this release.
Note: Certain prior period amounts have been reclassified to conform to
current year presentation.
RYDER SYSTEM, INC. AND SUBSIDIARIES
BUSINESS SEGMENT REVENUE AND EARNINGS - UNAUDITED
Periods ended September 30, 2006 and 2005
(Dollars in millions)
Three Months Nine Months
2006 2005 B(W) 2006 2005 B(W)
Revenue:
Fleet Management
Solutions:
Full service lease $464.3 447.4 4% $1,375.8 1,334.6 3%
Contract maintenance 37.3 34.0 10% 104.0 101.9 2%
Contract-related
maintenance 49.3 47.6 4% 144.4 143.5 1%
Commercial rental 181.5 183.4 (1%) 502.3 511.0 (2%)
Other 17.7 16.2 9% 53.2 50.3 6%
Fuel 309.9 282.2 10% 911.0 763.7 19%
Total Fleet Management
Solutions 1,060.0 1,010.8 5% 3,090.7 2,905.0 6%
Supply Chain Solutions 513.8 433.4 19% 1,485.4 1,155.1 29%
Dedicated Contract
Carriage 146.4 139.0 5% 428.6 400.8 7%
Eliminations (99.7) (92.6) (8%) (292.1) (264.8) (10%)
Total revenue $1,620.5 1,490.6 9% $4,712.6 4,196.1 12%
Operating Revenue: *
Fleet Management
Solutions $750.1 728.6 3% $2,179.7 2,141.3 2%
Supply Chain Solutions 299.1 254.3 18% 862.8 741.6 16%
Dedicated Contract
Carriage 140.7 134.6 5% 413.3 389.2 6%
Eliminations (50.3) (49.0) (3%) (147.6) (147.1) -
Total operating
revenue $1,139.6 1,068.5 7% $3,308.2 3,125.0 6%
Business segment
earnings:
Earnings before income
taxes:
Fleet Management
Solutions $103.7 102.6 1% $273.5 262.4 4%
Supply Chain Solutions 16.4 10.6 54% 45.1 25.4 77%
Dedicated Contract
Carriage 11.7 9.2 27% 31.4 24.8 27%
Eliminations (8.6) (8.2) (4%) (24.6) (23.3) (6%)
123.2 114.2 8% 325.4 289.3 12%
Unallocated Central
Support Services (9.8) (9.1) (8%) (28.4) (26.7) (6%)
Earnings before
restructuring and
other recoveries, net
and income taxes 113.4 105.1 8% 297.0 262.6 13%
Restructuring and other
(charges) recoveries,
net and pension
(charge) (6.0) 0.4 NA (5.8) 0.6 NA
Earnings before income
taxes 107.4 105.5 2% 291.2 263.2 11%
Provision for income
taxes (42.1) (42.2) - (108.1) (95.1) (14%)
Net earnings $65.3 63.3 3% $183.1 168.1 9%
* Non-GAAP financial measure
Note: Certain prior period amounts have been reclassified to conform to
current year presentation. Amounts may not recalculate due to
rounding.
RYDER SYSTEM, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION - UNAUDITED
Periods ended September 30, 2006 and 2005
(Dollars in millions)
Three Months Nine Months
2006 2005 B(W) 2006 2005 B(W)
Fleet Management Solutions
Total revenue $1,060.0 1,010.8 5% $3,090.7 2,905.0 6%
Fuel revenue (309.9) (282.2) 10% (911.0) (763.7) 19%
Operating revenue * $750.1 728.6 3% $2,179.7 2,141.3 2%
Segment earnings before
income taxes $103.7 102.6 1% $273.5 262.4 4%
Earnings before income
taxes as % of total
revenue 9.8% 10.1% 8.9% 9.0%
Earnings before income
taxes as % of operating
revenue * 13.8% 14.1% 12.5% 12.3%
Supply Chain Solutions
Total revenue $513.8 433.4 19% $1,485.4 1,155.1 29%
Subcontracted
transportation (214.7) (179.1) 20% (622.6) (413.5) 51%
Operating revenue * $299.1 254.3 18% $862.8 741.6 16%
Segment earnings before
income taxes $16.4 10.6 54% $45.1 25.4 77%
Earnings before income
taxes as % of total
revenue 3.2% 2.4% 3.0% 2.2%
Earnings before income
taxes as % of operating
revenue * 5.5% 4.2% 5.2% 3.4%
Memo: Fuel costs $26.6 23.8 (12%) $79.3 66.5 (19%)
Dedicated Contract Carriage
Total revenue $146.4 139.0 5% $428.6 400.8 7%
Subcontracted
transportation (5.7) (4.4) 30% (15.3) (11.6) 31%
Operating revenue * $140.7 134.6 5% $413.3 389.2 6%
Segment earnings before
income taxes $11.7 9.2 27% $31.4 24.8 27%
Earnings before income
taxes as % of total
revenue 8.0% 6.6% 7.3% 6.2%
Earnings before income
taxes as % of operating
revenue * 8.3% 6.8% 7.6% 6.4%
Memo: Fuel costs $27.8 24.9 (12%) $80.4 67.7 (19%)
* Non-GAAP financial measure
Note: Certain prior period amounts have been reclassified to conform to
current year presentation. Amounts may not recalculate due to
rounding.
RYDER SYSTEM, INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - PRELIMINARY AND UNAUDITED
(In millions, except per share amounts)
OPERATING REVENUE
RECONCILIATION Three Months Nine Months
2006 2005 2006 2005
Total revenue $1,620.5 1,490.6 $4,712.6 4,196.1
Fuel services and
subcontracted
transportation revenue (530.3) (465.7) (1,548.9) (1,188.8)
Fuel eliminations 49.4 43.6 144.5 117.7
Operating revenue * $1,139.6 1,068.5 $3,308.2 3,125.0
CASH FLOW RECONCILIATION Nine months ended September 30,
2006 2005
Net cash provided by
operating activities $611.6 470.8
Proceeds from sales (primarily
revenue earning equipment) 256.9 252.6
Collections of direct
finance leases 51.3 49.7
Other investing, net 2.1 -
Total cash generated * 921.9 773.1
Capital expenditures (1,171.6) (1,105.8)
Acquisitions (4.1) (15.1)
Free cash flow * $(253.8) (347.8)
DEBT TO EQUITY RECONCILIATION September % to December % to
30, 2006 Equity 31, 2005 Equity
On-balance sheet debt $2,632.2 160% 2,185.4 143%
Off-balance sheet debt - PV
of minimum lease payments
and guaranteed residual values
under operating leases for
vehicles (a) 91.7 117.0
Total obligations * $2,723.9 166% 2,302.4 151%
NET EARNINGS RECONCILIATION Three Months Nine Months
2006 2005 2006 2005
Net earnings $65.3 63.3 $183.1 168.1
Excluding tax changes and
pension charge 3.5 - (3.2) (7.6)
Net earnings excluding tax
changes and pension charge * $68.8 63.3 $179.9 160.5
EPS RECONCILIATION Three Months Nine Months
2006 2005 2006 2005
Earnings per share $1.06 0.98 $2.97 2.60
Excluding tax changes and
pension charge 0.06 - (0.05) (0.12)
Earnings per share excluding
tax changes and pension
charge * $1.12 0.98 $2.91 2.48
RETURN ON CAPITAL
RECONCILIATION Twelve months ended September 30,
2006 2005
Net earnings (12-month
rolling period) $241.9 230.8
- Discontinued
operations (1.7) -
+ Cumulative effect of
changes in accounting
principles 2.4 -
+ Income taxes 142.4 118.3
Adjusted earnings
before income taxes 385.0 349.1
+ Adjusted interest
expense (b) 140.4 120.8
- Adjusted income taxes (c) (202.8) (181.9)
= Adjusted net earnings
for ROC (numerator) $322.6 288.0
Average total debt $2,349.6 2,035.3
+ Average off-balance
sheet debt 110.4 160.4
+ Average adjusted total
shareholders' equity (d) 1,577.4 1,530.6
= Adjusted average total
capital (denominator) $4,037.4 3,726.3
Adjusted ROC * 8.0% 7.7%
Notes:
(a) Discounted at the incremental borrowing rate at lease inception.
(b) Interest expense includes implied interest on off-balance sheet
vehicle obligations.
(c) Income taxes were calculated using the effective income tax rate for
the period exclusive of tax benefits recognized through September 30,
2006 and 2005.
(d) Represents shareholders' equity adjusted for discontinued operations,
accounting changes and tax benefits in those periods.
* Non-GAAP financial measure
Earnings per share amounts are calculated independently for each
component and may not be additive due to rounding.
Certain prior period amounts have been reclassified to conform to
current year presentation.
SOURCE Ryder System, Inc.
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Related links:
http://www.ryder.com
http://www.mymeetings.com/nc/join
CONTACT:
Media, David Bruce, +1-305-500-4999, or
Investor Relations, Bob Brunn, +1-305-500-4053, both of Ryder
System, Inc.
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