(In millions, except EPS) | Earnings (Loss) Before Taxes | Earnings (Loss) | Diluted Earnings (Loss) Per Share | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Continuing operations (GAAP) | $ | 54.8 | $ | (91.3) | $ | 45.1 | $ | (91.5) | $ | 0.85 | $ | (1.75) | |||||||||||||||||||||||
Non-operating pension costs | 7.2 | 6.9 | 4.7 | 4.9 | 0.09 | 0.09 | |||||||||||||||||||||||||||||
Restructuring and other, net | 13.8 | 5.2 | 11.2 | 4.0 | 0.21 | 0.08 | |||||||||||||||||||||||||||||
ERP implementation costs | 5.8 | 6.1 | 4.3 | 4.5 | 0.08 | 0.09 | |||||||||||||||||||||||||||||
Gains on sale of properties | (3.7) | — | (3.4) | — | (0.06) | — | |||||||||||||||||||||||||||||
Tax adjustments | — | — | 2.1 | — | 0.04 | — | |||||||||||||||||||||||||||||
Comparable (non-GAAP) | $ | 77.8 | $ | (73.0) | $ | 63.8 | $ | (78.1) | $ | 1.21 | $ | (1.49) | |||||||||||||||||||||||
Note: Amounts may not be additive due to rounding. |
(In millions) | Total Revenue | Operating Revenue (non-GAAP) | |||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||
Total | $ | 2,151 | 2,224 | (3)% | $ | 1,790 | 1,796 | —% | |||||||||||||||||||||||||||
Fleet Management Solutions (FMS) | $ | 1,297 | 1,397 | (7)% | $ | 1,153 | 1,190 | (3)% | |||||||||||||||||||||||||||
Supply Chain Solutions (SCS) | $ | 685 | 618 | 11% | $ | 492 | 454 | 9% | |||||||||||||||||||||||||||
Dedicated Transportation Solutions (DTS) | $ | 300 | 359 | (17)% | $ | 234 | 248 | (6)% |
(In millions) | 3Q20 | 3Q19 | Change | ||||||||||||||
Total Revenue | $ | 1,297 | 1,397 | (7)% | |||||||||||||
Operating Revenue (1) | $ | 1,153 | 1,190 | (3)% | |||||||||||||
Earnings Before Tax (EBT) (2) | $ | 16 | (109) | NM | |||||||||||||
FMS EBT as a % of FMS total revenue | 1.2 | % | (7.8) | % | 900 bps | ||||||||||||
FMS EBT as a % of FMS operating revenue (1) | 1.4 | % | (9.1) | % | 1,050 bps | ||||||||||||
(1) Non-GAAP financial measure excluding fuel and lease liability insurance revenue. (2) EBT in 3Q20 and 3Q19 included $100M and $208M of depreciation expense, respectively, from the impact of policy and accelerated depreciation due to 2020 and 2019 residual values estimate changes. NM - Not Meaningful | |||||||||||||||||
3Q20 earnings impact from residual value estimate changes | |||||||||||||||||
3Q20 Estimated | 3Q20 Actual | ||||||||||||||||
EBT impact from residual value estimate changes(1) | $115 | $100 | |||||||||||||||
(1) In the second quarter of 2020, we projected that the 3Q20 estimated impact from policy and accelerated depreciation due to residual value estimate changes made in 2019 and 2020 would be $115M of depreciation expense. The actual impact was $100M which included $13M in gains on used vehicle sales, net, as an offset to the depreciation expense. The difference between the estimated impact and the actual impact was $15M, primarily due to gains of $13M on used vehicle sales, net, which was not included in 3Q20 estimates. |
(In millions) | 3Q20 | 3Q19 | Change | ||||||||||||||
Total Revenue | $ | 685 | 618 | 11% | |||||||||||||
Operating Revenue (1) | $ | 492 | 454 | 9% | |||||||||||||
Earnings Before Tax (EBT) | $ | 58 | 35 | 67% | |||||||||||||
EBT as a % of total revenue | 8.4% | 5.6% | 280 bps | ||||||||||||||
EBT as a % of operating revenue (1) | 11.8% | 7.6% | 420 bps | ||||||||||||||
(1) Non-GAAP financial measure excluding fuel and subcontracted transportation. |
(In millions) | 3Q20 | 3Q19 | Change | ||||||||||||||
Total Revenue | $ | 300 | 359 | (17)% | |||||||||||||
Operating Revenue (1) | $ | 234 | 248 | (6)% | |||||||||||||
Earnings Before Tax (EBT) | $ | 25 | 18 | 34% | |||||||||||||
EBT as a % of total revenue | 8.3% | 5.1% | 320 bps | ||||||||||||||
EBT as a % of operating revenue (1) | 10.6% | 7.5% | 310 bps | ||||||||||||||
(1) Non-GAAP financial measure excluding fuel and subcontracted transportation. |
(In millions, except EPS) | Earnings | Diluted EPS | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Earnings (loss) from continuing operations | $ | 45.1 | (91.5) | $ | 0.85 | (1.75) | |||||||||||||||||
Discontinued operations | (9.3) | 0.1 | (0.17) | — | |||||||||||||||||||
Net earnings (loss) | $ | 35.8 | (91.5) | $ | 0.68 | (1.75) |
(In millions, except EPS) | Nine months ended September 30, | ||||||||||||||||
2020 | 2019 | Change | |||||||||||||||
Total revenue | $ | 6,207 | 6,649 | (7) | % | ||||||||||||
Operating revenue (non-GAAP) | $ | 5,185 | 5,350 | (3) | % | ||||||||||||
Earnings (loss) from continuing operations | $ | (137.7) | 29.8 | NM | |||||||||||||
Comparable earnings (loss) from continuing operations (non-GAAP) | $ | (57.7) | 54.2 | NM | |||||||||||||
Net earnings (loss) | $ | (147.9) | 29.1 | NM | |||||||||||||
Earnings (loss) per common share (EPS) - Diluted | |||||||||||||||||
Continuing operations | $ | (2.64) | 0.56 | NM | |||||||||||||
Comparable (non-GAAP) | $ | (1.11) | 1.03 | NM | |||||||||||||
Net earnings (loss) | $ | (2.83) | 0.55 | NM |
Three Months | Nine Months | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Lease & related maintenance and rental revenues | $ | 933.8 | 959.2 | $ | 2,730.2 | 2,792.6 | |||||||||||||||||
Services revenue | 1,120.5 | 1,120.9 | 3,175.0 | 3,412.0 | |||||||||||||||||||
Fuel services revenue | 96.3 | 143.8 | 302.0 | 444.6 | |||||||||||||||||||
Total revenues | 2,150.6 | 2,223.9 | 6,207.2 | 6,649.3 | |||||||||||||||||||
Cost of lease & related maintenance and rental | 758.4 | 877.8 | 2,352.0 | 2,229.6 | |||||||||||||||||||
Cost of services | 932.5 | 948.1 | 2,680.3 | 2,896.2 | |||||||||||||||||||
Cost of fuel services | 92.9 | 140.2 | 291.4 | 431.9 | |||||||||||||||||||
Other operating expenses | 30.0 | 28.9 | 93.4 | 92.2 | |||||||||||||||||||
Selling, general and administrative expenses | 211.2 | 216.0 | 643.9 | 673.8 | |||||||||||||||||||
Non-operating pension costs | 7.2 | 6.9 | 9.4 | 20.1 | |||||||||||||||||||
Used vehicle sales, net | (12.9) | 22.7 | 17.3 | 49.1 | |||||||||||||||||||
Interest expense | 62.6 | 62.5 | 192.5 | 178.6 | |||||||||||||||||||
Miscellaneous (income) loss, net | (10.6) | 0.7 | (11.8) | (29.5) | |||||||||||||||||||
Restructuring and other items, net | 24.5 | 11.4 | 92.6 | 27.4 | |||||||||||||||||||
2,095.8 | 2,315.2 | 6,360.8 | 6,569.3 | ||||||||||||||||||||
Earnings (loss) from continuing operations before income taxes | 54.8 | (91.3) | (153.6) | 80.0 | |||||||||||||||||||
Provision for (benefit from) income taxes | 9.7 | 0.3 | (15.9) | 50.2 | |||||||||||||||||||
Earnings (loss) from continuing operations | 45.1 | (91.5) | (137.7) | 29.8 | |||||||||||||||||||
Income (loss) from discontinued operations, net of tax | (9.3) | 0.1 | (10.1) | (0.7) | |||||||||||||||||||
Net earnings (loss) | $ | 35.8 | (91.5) | $ | (147.9) | 29.1 | |||||||||||||||||
Earnings (loss) per common share — Diluted | |||||||||||||||||||||||
Continuing operations | $ | 0.85 | (1.75) | $ | (2.64) | 0.56 | |||||||||||||||||
Discontinued operations | (0.17) | — | (0.20) | (0.02) | |||||||||||||||||||
Net earnings | $ | 0.68 | (1.75) | $ | (2.83) | 0.55 | |||||||||||||||||
Earnings (loss) per share information — Diluted | |||||||||||||||||||||||
Earnings from continuing operations | $ | 45.1 | (91.5) | $ | (137.7) | 29.8 | |||||||||||||||||
Less: Distributed and undistributed earnings allocated to unvested stock | (0.2) | (0.1) | (0.4) | (0.3) | |||||||||||||||||||
Earnings from continuing operations available to common stockholders | $ | 44.9 | (91.7) | $ | (138.1) | 29.5 | |||||||||||||||||
Weighted-average common shares outstanding — Diluted | 52.7 | 52.3 | 52.4 | 52.6 | |||||||||||||||||||
EPS from continuing operations | $ | 0.85 | (1.75) | $ | (2.64) | 0.56 | |||||||||||||||||
Non-operating pension costs | 0.09 | 0.09 | 0.09 | 0.27 | |||||||||||||||||||
Restructuring and other, net | 0.21 | 0.08 | 0.69 | 0.21 | |||||||||||||||||||
ERP implementation costs | 0.08 | 0.09 | 0.38 | 0.19 | |||||||||||||||||||
Gains on sale of properties | (0.06) | — | (0.06) | (0.26) | |||||||||||||||||||
Tax adjustments, net | 0.04 | — | 0.43 | 0.06 | |||||||||||||||||||
Comparable EPS from continuing operations * | $ | 1.21 | (1.49) | $ | (1.11) | 1.03 | |||||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 684.2 | 73.6 | ||||||||
Other current assets | 1,348.6 | 1,488.5 | |||||||||
Revenue earning equipment, net | 9,082.6 | 10,427.7 | |||||||||
Operating property and equipment, net | 913.4 | 917.8 | |||||||||
Other assets | 1,613.2 | 1,567.8 | |||||||||
$ | 13,642.0 | 14,475.3 | |||||||||
Liabilities and shareholders' equity: | |||||||||||
Current liabilities | $ | 1,385.2 | 1,470.8 | ||||||||
Total debt (including current portion) | 7,436.6 | 7,924.8 | |||||||||
Other non-current liabilities (including deferred income taxes) | 2,669.7 | 2,603.4 | |||||||||
Shareholders' equity | 2,150.6 | 2,476.3 | |||||||||
$ | 13,642.0 | 14,475.3 |
September 30, 2020 | December 31, 2019 | ||||||||||
Debt to equity | 346 | % | 320 | % | |||||||
Effective interest rate (average cost of debt) | 3.2 | % | 3.2 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Comparable EBITDA* | $ | 640.3 | 592.2 | $ | 1,708.1 | 1,704.3 |
Nine months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Net cash provided by operating activities from continuing operations | $ | 1,696.6 | 1,589.2 | ||||||||
Free cash flow * | 1,217.9 | (964.6) | |||||||||
Capital expenditures paid | 879.4 | 2,957.2 | |||||||||
Capital expenditures (accrual basis) | $ | 765.0 | 2,999.0 | ||||||||
Less: Proceeds from sales (primarily revenue earning equipment) | (400.7) | (403.5) | |||||||||
Net capital expenditures | $ | 364.3 | 2,595.5 |
Twelve months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Adjusted return on equity * | (4.4) | % | 5.3 | % | |||||||
Adjusted return on capital * | 1.0 | % | 3.2 | % | |||||||
Weighted average cost of capital | 4.5 | % | 4.6 | % | |||||||
Adjusted return on capital spread ** | (3.5) | % | (1.4) | % |
Three Months | Nine Months | ||||||||||||||||||||||||||||||||||
2020 | 2019 | B(W) | 2020 | 2019 | B(W) | ||||||||||||||||||||||||||||||
Total Revenue: | |||||||||||||||||||||||||||||||||||
Fleet Management Solutions: | |||||||||||||||||||||||||||||||||||
ChoiceLease | $ | 788.2 | 770.7 | 2 | % | $ | 2,346.5 | 2,268.0 | 3 | % | |||||||||||||||||||||||||
SelectCare | 128.4 | 133.4 | (4) | % | 390.4 | 405.6 | (4) | % | |||||||||||||||||||||||||||
Commercial rental | 220.1 | 263.0 | (16) | % | 595.0 | 753.0 | (21) | % | |||||||||||||||||||||||||||
Other | 16.7 | 22.5 | (25) | % | 52.5 | 68.7 | (24) | % | |||||||||||||||||||||||||||
Fuel services revenue | 138.9 | 198.7 | (30) | % | 429.5 | 618.9 | (31) | % | |||||||||||||||||||||||||||
ChoiceLease liability insurance revenue | 5.0 | 9.1 | (45) | % | 21.7 | 25.7 | (15) | % | |||||||||||||||||||||||||||
Total Fleet Management Solutions | 1,297.2 | 1,397.3 | (7) | % | 3,835.6 | 4,139.9 | (7) | % | |||||||||||||||||||||||||||
Supply Chain Solutions | 685.4 | 617.6 | 11 | % | 1,833.2 | 1,902.6 | (4) | % | |||||||||||||||||||||||||||
Dedicated Transportation Solutions | 299.7 | 359.2 | (17) | % | 928.5 | 1,071.1 | (13) | % | |||||||||||||||||||||||||||
Eliminations | (131.7) | (150.2) | 12 | % | (390.2) | (464.3) | 16 | % | |||||||||||||||||||||||||||
Total revenue | $ | 2,150.6 | 2,223.9 | (3) | % | $ | 6,207.2 | 6,649.3 | (7) | % | |||||||||||||||||||||||||
Operating Revenue: * | |||||||||||||||||||||||||||||||||||
Fleet Management Solutions | $ | 1,153.4 | 1,189.6 | (3) | % | $ | 3,384.4 | 3,495.3 | (3) | % | |||||||||||||||||||||||||
Supply Chain Solutions | 492.3 | 453.7 | 9 | % | 1,364.7 | 1,413.6 | (3) | % | |||||||||||||||||||||||||||
Dedicated Transportation Solutions | 233.6 | 247.7 | (6) | % | 698.2 | 731.4 | (5) | % | |||||||||||||||||||||||||||
Eliminations | (89.1) | (95.4) | 7 | % | (262.7) | (290.0) | 9 | % | |||||||||||||||||||||||||||
Operating revenue | $ | 1,790.2 | 1,795.6 | — | % | $ | 5,184.7 | 5,350.3 | (3) | % | |||||||||||||||||||||||||
Business Segment Earnings: | |||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | |||||||||||||||||||||||||||||||||||
before income taxes: | |||||||||||||||||||||||||||||||||||
Fleet Management Solutions | $ | 16.2 | (108.6) | NM | $ | (202.2) | 10.1 | NM | |||||||||||||||||||||||||||
Supply Chain Solutions | 57.8 | 34.6 | 67 | % | 125.8 | 112.7 | 12 | % | |||||||||||||||||||||||||||
Dedicated Transportation Solutions | 24.7 | 18.5 | 34 | % | 58.1 | 63.0 | (8) | % | |||||||||||||||||||||||||||
Eliminations | (12.9) | (6.1) | NM | (30.8) | (42.6) | 28 | % | ||||||||||||||||||||||||||||
85.8 | (61.6) | NM | (49.0) | 143.2 | NM | ||||||||||||||||||||||||||||||
Unallocated Central Support Services | (8.0) | (11.4) | 30 | % | (28.1) | (34.5) | 18 | % | |||||||||||||||||||||||||||
Non-operating pension costs | (7.2) | (6.9) | (5) | % | (9.4) | (20.1) | 53 | % | |||||||||||||||||||||||||||
Other items impacting comparability, net | (15.8) | (11.4) | (39) | % | (67.2) | (8.8) | NM | ||||||||||||||||||||||||||||
Earnings (loss) from continuing operations before income taxes | 54.8 | (91.3) | NM | (153.6) | 80.0 | NM | |||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | 9.7 | 0.3 | NM | (15.9) | 50.2 | NM | |||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | $ | 45.1 | (91.5) | NM | $ | (137.7) | 29.8 | NM |
Three Months | Nine Months | ||||||||||||||||||||||||||||||||||
2020 | 2019 | B(W) | 2020 | 2019 | B(W) | ||||||||||||||||||||||||||||||
Fleet Management Solutions | |||||||||||||||||||||||||||||||||||
FMS total revenue | $ | 1,297.2 | 1,397.3 | (7) | % | $ | 3,835.6 | 4,139.9 | (7) | % | |||||||||||||||||||||||||
Fuel services revenue(a) | (138.9) | (198.7) | (30) | % | (429.5) | (618.9) | (31) | % | |||||||||||||||||||||||||||
ChoiceLease liability insurance revenue | (5.0) | (9.1) | (45) | % | (21.7) | (25.7) | (15) | % | |||||||||||||||||||||||||||
FMS operating revenue * | $ | 1,153.4 | 1,189.6 | (3) | % | $ | 3,384.4 | 3,495.3 | (3) | % | |||||||||||||||||||||||||
Segment earnings (loss) before income taxes | $ | 16.2 | (108.6) | NM | $ | (202.2) | 10.1 | NM | |||||||||||||||||||||||||||
FMS earnings (loss) before income taxes as % of FMS total revenue | 1.2% | (7.8)% | (5.3)% | 0.2% | |||||||||||||||||||||||||||||||
FMS earnings (loss) before income taxes as % of FMS operating revenue * | 1.4% | (9.1)% | (6.0)% | 0.3% | |||||||||||||||||||||||||||||||
Supply Chain Solutions | |||||||||||||||||||||||||||||||||||
SCS total revenue | $ | 685.4 | 617.6 | 11 | % | $ | 1,833.2 | 1,902.6 | (4) | % | |||||||||||||||||||||||||
Subcontracted transportation | (172.0) | (136.9) | 26 | % | (409.9) | (400.4) | 2 | % | |||||||||||||||||||||||||||
Fuel | (21.1) | (27.0) | (22) | % | (58.6) | (88.6) | (34) | % | |||||||||||||||||||||||||||
SCS operating revenue * | $ | 492.3 | 453.7 | 9 | % | $ | 1,364.7 | 1,413.6 | (3) | % | |||||||||||||||||||||||||
Segment earnings before income taxes | $ | 57.8 | 34.6 | 67 | % | $ | 125.8 | 112.7 | 12 | % | |||||||||||||||||||||||||
SCS earnings before income taxes as % of SCS total revenue | 8.4% | 5.6% | 6.9% | 5.9% | |||||||||||||||||||||||||||||||
SCS earnings before income taxes as % of SCS operating revenue * | 11.8% | 7.6% | 9.2% | 8.0% | |||||||||||||||||||||||||||||||
Dedicated Transportation Solutions | |||||||||||||||||||||||||||||||||||
DTS total revenue | $ | 299.7 | 359.2 | (17) | % | $ | 928.5 | 1,071.1 | (13) | % | |||||||||||||||||||||||||
Subcontracted transportation | (40.5) | (76.2) | (47) | % | (148.6) | (229.9) | (35) | % | |||||||||||||||||||||||||||
Fuel | (25.6) | (35.3) | (28) | % | (81.7) | (109.8) | (26) | % | |||||||||||||||||||||||||||
DTS operating revenue * | $ | 233.6 | 247.7 | (6) | % | $ | 698.2 | 731.4 | (5) | % | |||||||||||||||||||||||||
Segment earnings before income taxes | $ | 24.7 | 18.5 | 34 | % | $ | 58.1 | 63.0 | (8) | % | |||||||||||||||||||||||||
DTS earnings before income taxes as % of DTS total revenue | 8.3% | 5.1% | 6.3% | 5.9% | |||||||||||||||||||||||||||||||
DTS earnings before income taxes as % of DTS operating revenue * | 10.6% | 7.5% | 8.3% | 8.6% |
Three months ended September 30, | Nine months ended September 30, | 2020/2019 | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | Three Months | Nine Months | ||||||||||||||||||||||||||||||
ChoiceLease | |||||||||||||||||||||||||||||||||||
Average fleet count | 152,400 | 159,000 | 156,300 | 154,900 | (4)% | 1% | |||||||||||||||||||||||||||||
End of period fleet count | 150,900 | 160,200 | 150,900 | 160,200 | (6)% | (6)% | |||||||||||||||||||||||||||||
Miles/unit per day change - % (a) | (1.7) | % | 2.0 | % | (3.0) | % | 0.7 | % | |||||||||||||||||||||||||||
Average Active ChoiceLease vehicles (b) | 144,100 | 145,200 | 146,300 | 143,500 | (1)% | 2% | |||||||||||||||||||||||||||||
Revenue per active ChoiceLease vehicle (c) | $ | 5,500 | $ | 5,300 | $ | 16,000 | $ | 15,800 | 4% | 1% | |||||||||||||||||||||||||
Commercial rental | |||||||||||||||||||||||||||||||||||
Average fleet count | 36,000 | 45,200 | 38,200 | 44,100 | (20)% | (13)% | |||||||||||||||||||||||||||||
End of period fleet count | 35,400 | 44,800 | 35,400 | 44,800 | (21)% | (21)% | |||||||||||||||||||||||||||||
Rental utilization - power units | 70.8 | % | 74.0 | % | 63.7 | % | 74.7 | % | (320)bps | (1,100)bps | |||||||||||||||||||||||||
Rental rate change - % (d) | 5.8 | % | 2.0 | % | 3.8 | % | 2.4 | % | |||||||||||||||||||||||||||
Customer vehicles under | |||||||||||||||||||||||||||||||||||
SelectCare contracts | |||||||||||||||||||||||||||||||||||
Average fleet count | 56,500 | 56,400 | 55,200 | 55,500 | —% | (1)% | |||||||||||||||||||||||||||||
End of period fleet count | 55,000 | 56,800 | 55,000 | 56,800 | (3)% | (3)% | |||||||||||||||||||||||||||||
Customer vehicles under | |||||||||||||||||||||||||||||||||||
SelectCare on-demand (e) | |||||||||||||||||||||||||||||||||||
Fleet serviced during the period | 6,200 | 8,300 | 15,400 | 19,400 | (25)% | (21)% | |||||||||||||||||||||||||||||
SCS | |||||||||||||||||||||||||||||||||||
Average fleet count (f) | 9,600 | 9,700 | 9,600 | 9,700 | (1)% | (1)% | |||||||||||||||||||||||||||||
End of period fleet count (f) | 9,500 | 9,700 | 9,500 | 9,700 | (2)% | (2)% | |||||||||||||||||||||||||||||
DTS | |||||||||||||||||||||||||||||||||||
Average fleet count (f) | 9,300 | 9,600 | 9,400 | 9,600 | (3)% | (2)% | |||||||||||||||||||||||||||||
End of period fleet count (f) | 9,300 | 9,600 | 9,300 | 9,600 | (3)% | (3)% | |||||||||||||||||||||||||||||
Used vehicle sales (UVS) | |||||||||||||||||||||||||||||||||||
Average UVS inventory | 12,800 | 7,700 | 12,000 | 7,600 | 66% | 58% | |||||||||||||||||||||||||||||
End of period fleet count | 10,700 | 7,300 | 10,700 | 7,300 | 47% | 47% | |||||||||||||||||||||||||||||
Used vehicles sold | 8,800 | 5,300 | 20,600 | 15,300 | 66% | 35% | |||||||||||||||||||||||||||||
UVS pricing change (g) | |||||||||||||||||||||||||||||||||||
Tractors | (11) | % | (8) | % | (23) | % | 7 | % | |||||||||||||||||||||||||||
Trucks | 1 | % | (10) | % | (4) | % | (5) | % |
(a) | Represents percentage change compared to prior year period in miles driven per vehicle per workday on US lease power units. | ||||
(b) | Active ChoiceLease vehicles are calculated as those units currently earning revenue and not classified as not yet earning or no longer earning units. | ||||
(c) | Calculated based on the reported quarterly and year-to-date ChoiceLease revenue. | ||||
(d) | Represents percentage change compared to prior year period in average global rental rate per day on power units using constant currency. | ||||
(e) | Comprised of the number of vehicles serviced under on-demand maintenance agreements. Vehicles included in the end of period count may have been serviced more than one time during the respective period. | ||||
(f) | These vehicle counts are also included within the average fleet counts for ChoiceLease, Commercial rental and SelectCare. | ||||
(g) | Represents percentage change compared to prior year period in average sales proceeds on used vehicle sales using constant currency. |
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 | |||||||
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 (Loss) Before Income Tax and Comparable Tax Rate | Earnings (Loss) Before Income Tax and Effective Tax Rate from Continuing Operations | Appendix - Non-GAAP Financial Measure Reconciliations | ||||||
Comparable Earnings (Loss) | Earnings (Loss) from Continuing Operations | Appendix - Non-GAAP Financial Measure Reconciliations | ||||||
Comparable EPS | EPS from Continuing Operations | Condensed Consolidated Statements of Earnings - Unaudited | ||||||
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 | ||||||
Adjusted Return on Capital (ROC) and Adjusted ROC Spread | Not Applicable. However, 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 total debt and average shareholders' equity to adjusted average total capital is provided. | Appendix - Non-GAAP Financial Measure Reconciliations | ||||||
Comparable Earnings Before Interest, Taxes, Depreciation and Amortization | Earnings (Loss) from Continuing Operations | Appendix - Non-GAAP Financial Measure Reconciliations | ||||||
Cash Flow Measures: | ||||||||
Total Cash Generated and Free Cash Flow | Cash Provided by Operating Activities | Appendix - Non-GAAP Financial Measure Reconciliations |
Operating Revenue Measures: | |||||||||||
Operating Revenue FMS Operating Revenue SCS Operating Revenue DTS Operating Revenue FMS EBT as a % of FMS Operating Revenue SCS EBT as a % of SCS Operating Revenue DTS EBT as a % of DTS Operating Revenue | Operating revenue is defined as total revenue for Ryder System, Inc. or each business segment (FMS, SCS and DTS) excluding any (1) fuel and (2) subcontracted transportation, as well as (3) revenue from our ChoiceLease liability insurance program which was discontinued in early 2020. We believe operating revenue provides useful information to investors as we use it to evaluate the operating performance of our core businesses and as a measure of sales activity at the consolidated level for Ryder System, Inc., as well as for each of our business segments. We also use segment EBT as a percentage of segment operating revenue for each business segment for the same reason. Note: FMS EBT, SCS EBT and DTS EBT, our primary measures of segment performance, are not non-GAAP measures. Fuel: We exclude FMS, SCS and DTS fuel from the calculation of our operating revenue measures, as fuel is an ancillary service that we provide our customers, which 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 trailing market fuel costs. Subcontracted transportation: We also 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 is estimated to be completed in the second quarter of 2021. We are excluding the revenues associated with this program for better comparability of our on-going operations. |
Comparable Earnings Measures: | |||||||||||
Comparable Earnings (Loss) Before Income Taxes (EBT) and Comparable Tax Rate Comparable Earnings Comparable Earnings per Diluted Common Share (EPS) Adjusted Return on Equity (ROE) Adjusted Return on Capital (ROC) and Adjusted ROC Spread | 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 and (2) any other significant items that are not representative of our business operations. We believe these comparable earnings measures provide useful information to investors and allow for better year-over-year comparison of operating performance. Non-operating pension costs: Our comparable earnings measures exclude non-operating pension costs, which include the amortization of net actuarial loss and prior service cost, interest cost and expected return on plan assets components of pension and postretirement benefit costs, as well as a settlement or curtailment of a plan if one has occurred. We exclude non-operating pension costs 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. Calculation of comparable tax rate: 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 statutory tax rates of the jurisdictions to which the non-GAAP adjustments relate. Adjusted ROE: 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. Adjusted ROC: Adjusted ROC is defined as adjusted net earnings divided by average total capital and represents the rate of return generated by the capital deployed in our business. Other items impacting comparability described above are excluded, as applicable, from the calculation of net earnings and average shareholders' equity (a component of average total capital).We use adjusted ROC as an internal measure of how effectively we use the capital invested (borrowed or owned) in our operations. Adjusted return on capital spread is calculated as the difference of the adjusted return on capital and the weighted average cost of capital. | ||||||||||
Comparable Earnings Before Interest, Taxes, Depreciation and Amortization | Comparable EBITDA is defined as earnings from continuing operations, net of tax, first adjusted to exclude the following items, all from continuing operations: (1) non-operating pension costs 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 and are described under Comparable Earnings Measures above) and then adjusted further for (1) interest expense, (2) income taxes, (3) depreciation, (4) losses from used vehicle fair value adjustments 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 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: 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: We refer to the net amount of cash generated from operating activities and investing activities (excluding acquisitions) from continuing operations as “free cash flow”. 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, (3) net cash provided by the sale of operating property and equipment, and (4) other cash inflows from investing activities, less (5) 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. |
OPERATING REVENUE RECONCILIATION | |||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Total revenue | $ | 2,150.6 | 2,223.9 | $ | 6,207.2 | 6,649.3 | |||||||||||||||||
Fuel | (142.9) | (206.1) | (442.3) | (643.0) | |||||||||||||||||||
Subcontracted transportation | (212.5) | (213.1) | (558.5) | (630.4) | |||||||||||||||||||
ChoiceLease liability insurance revenue | (5.0) | (9.1) | (21.7) | (25.7) | |||||||||||||||||||
Operating revenue * | $ | 1,790.2 | 1,795.6 | $ | 5,184.7 | 5,350.3 |
TOTAL CASH GENERATED / FREE CASH FLOW RECONCILIATION | |||||||||||
Nine months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Net cash provided by operating activities from continuing operations | $ | 1,696.6 | 1,589.2 | ||||||||
Proceeds from sales (primarily revenue earning equipment) (a) | 390.8 | 353.7 | |||||||||
Sales of operating property and equipment | 9.9 | 49.7 | |||||||||
Total cash generated * | 2,097.3 | 1,992.7 | |||||||||
Purchases of property and revenue earning equipment (a) | (879.4) | (2,957.2) | |||||||||
Free cash flow * | $ | 1,217.9 | (964.6) | ||||||||
Memo: | |||||||||||
Net cash used in investing activities | $ | (484.4) | (2,553.8) | ||||||||
Net cash provided by (used in) financing activities | $ | (603.7) | 976.6 |
(a) | Included in cash flows from investing activities. |
ADJUSTED RETURN ON EQUITY RECONCILIATION | |||||||||||
Twelve months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Net earnings (12-month rolling period) | $ | (201.4) | 141.1 | ||||||||
+ Other items impacting comparability * | 96.4 | 13.3 | |||||||||
+ Income taxes (a) | (85.0) | 54.5 | |||||||||
Adjusted earnings before income taxes | (190.1) | 208.8 | |||||||||
- Adjusted income taxes (b) | 85.8 | (73.5) | |||||||||
= Adjusted net earnings for ROE (numerator)** [A] | $ | (104.3) | 135.3 | ||||||||
Average shareholders' equity | $ | 2,301.1 | 2,545.6 | ||||||||
Adjustment to equity (c) | 43.1 | 16.4 | |||||||||
Adjusted average total equity (denominator)** [B] | $ | 2,344.2 | 2,562.0 | ||||||||
Adjusted ROE ** [A]/[B] | (4.4) | % | 5.3 | % | |||||||
(a) | Includes income taxes on discontinued operations. | ||||
(b) | Represents the tax provision on adjusted earnings before income taxes. | ||||
(c) | Represents the impact to equity of items to arrive at adjusted earnings. |
Twelve months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Restructuring and other, net | $ | 65.4 | 17.6 | ||||||||
ERP implementation costs | 34.7 | 14.3 | |||||||||
Gains on sale of properties | (3.7) | (18.6) | |||||||||
Other items impacting comparability | $ | 96.4 | 13.3 | ||||||||
ADJUSTED RETURN ON CAPITAL RECONCILIATION | |||||||||||
Twelve months ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Net earnings (12-month rolling period) | $ | (201.4) | 141.1 | ||||||||
+ Other items impacting comparability * | 96.4 | 13.3 | |||||||||
+ Income taxes (a) | (85.0) | 54.5 | |||||||||
Adjusted earnings before income taxes | (190.1) | 208.8 | |||||||||
+ Interest expense | 255.3 | 230.3 | |||||||||
- Adjusted income taxes (b) | 36.4 | (130.5) | |||||||||
= Adjusted net earnings for ROC (numerator)** [A] | $ | 101.7 | 308.5 | ||||||||
Average total debt | $ | 7,886.0 | 7,105.9 | ||||||||
Average shareholders' equity | 2,301.1 | 2,545.6 | |||||||||
Adjustment to equity (c) | 43.1 | 16.4 | |||||||||
Adjusted average total capital (denominator)** [B] | $ | 10,230.2 | 9,667.9 | ||||||||
Adjusted ROC ** [A]/[B] | 1.0 | % | 3.2 | % | |||||||
Weighted average cost of capital | 4.5 | % | 4.6 | % | |||||||
Adjusted return on capital spread*** | (3.5) | % | (1.4) | % |
(a) | Includes income taxes on discontinued operations. | ||||
(b) | Represents the tax provision on adjusted earnings before income taxes and adjusted interest expense. | ||||
(c) | Represents the impact to equity of items to arrive at adjusted earnings. |
COMPARABLE EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION | |||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Earnings (loss) from continuing operations | $ | 45.1 | (91.5) | $ | (137.7) | 29.8 | |||||||||||||||||
+ Provision for (benefit from) income taxes | 9.7 | 0.3 | (15.9) | 50.2 | |||||||||||||||||||
Earnings before income taxes from continuing operations | 54.8 | (91.3) | (153.6) | 80.0 | |||||||||||||||||||
+ Non-operating pension costs | 7.2 | 6.9 | 9.4 | 20.1 | |||||||||||||||||||
+ Restructuring and other, net | 13.8 | 5.2 | 43.8 | 13.8 | |||||||||||||||||||
+ ERP implementation costs | 5.8 | 6.1 | 27.1 | 13.6 | |||||||||||||||||||
- Gains on sale of properties | (3.7) | — | (3.7) | (18.6) | |||||||||||||||||||
Comparable earnings (loss) before income taxes from continuing operations | 77.8 | (73.0) | (77.1) | 108.8 | |||||||||||||||||||
+ Interest expense | 62.6 | 62.5 | 192.5 | 178.6 | |||||||||||||||||||
+ Depreciation | 496.1 | 574.7 | 1,552.3 | 1,342.7 | |||||||||||||||||||
+ Losses from used vehicle fair value adjustments | 1.9 | 25.9 | 34.5 | 67.9 | |||||||||||||||||||
+ Amortization | 1.9 | 2.1 | 5.9 | 6.3 | |||||||||||||||||||
Comparable EBITDA * | $ | 640.3 | 592.2 | $ | 1,708.1 | 1,704.3 |
COMPARABLE EARNINGS BEFORE INCOME TAXES / EARNINGS / TAX RATE RECONCILIATION | |||||||||||||||||
2020 | |||||||||||||||||
Condensed Consolidated Statements of Earnings Line Item | Three Months | Nine Months | |||||||||||||||
Earnings (loss) from continuing operations before income taxes | $ | 54.8 | (153.6) | ||||||||||||||
Non-operating pension costs | Non-operating pension costs | 7.2 | 9.4 | ||||||||||||||
Restructuring and other, net | Revenue and Restructuring and other items, net | 13.8 | 43.8 | ||||||||||||||
ERP implementation costs | Restructuring and other items, net | 5.8 | 27.1 | ||||||||||||||
Gains on sale of properties | Miscellaneous (income) loss, net | (3.7) | (3.7) | ||||||||||||||
Comparable earnings (loss) from continuing operations before income taxes* | $ | 77.8 | (77.1) | ||||||||||||||
Provision for (benefit from) income taxes | $ | 9.7 | (15.9) | ||||||||||||||
Tax adjustments | (2.1) | (22.4) | |||||||||||||||
Income tax effects of non-GAAP adjustments** | 6.3 | 18.9 | |||||||||||||||
Comparable provision for (benefit from) income taxes | $ | 13.9 | (19.4) | ||||||||||||||
Earnings (loss) from continuing operations | $ | 45.1 | (137.7) | ||||||||||||||
Non-operating pension costs | Non-operating pension costs | 4.7 | 4.7 | ||||||||||||||
Restructuring and other, net | Revenue and Restructuring and other items, net | 11.2 | 36.2 | ||||||||||||||
ERP implementation costs | Restructuring and other items, net | 4.3 | 20.1 | ||||||||||||||
Gains on sale of properties | Miscellaneous (income) loss, net | (3.4) | (3.4) | ||||||||||||||
Tax adjustments | Provision for (benefit from) income taxes | 2.1 | 22.4 | ||||||||||||||
Comparable earnings (loss) from continuing operations* | $ | 63.8 | (57.7) | ||||||||||||||
Tax rate on continuing operations | 17.7 | % | (10.3) | % | |||||||||||||
Tax adjustments and income tax effects of non-GAAP adjustments** | 0.2 | % | (14.8) | % | |||||||||||||
Comparable tax rate on continuing operations** | 17.9 | % | (25.1) | % | |||||||||||||
COMPARABLE EARNINGS BEFORE INCOME TAXES / EARNINGS / TAX RATE RECONCILIATION | |||||||||||||||||
2019 | |||||||||||||||||
Condensed Consolidated Statements of Earnings Line Item | Three Months | Nine Months | |||||||||||||||
Earnings from continuing operations before income taxes | $ | (91.3) | 80.0 | ||||||||||||||
Non-operating pension costs | Non-operating pension costs | 6.9 | 20.1 | ||||||||||||||
Restructuring and other, net | Restructuring and other items, net | 5.2 | 13.8 | ||||||||||||||
ERP implementation costs | Restructuring and other items, net | 6.1 | 13.6 | ||||||||||||||
Gains on sale of properties | Miscellaneous (income) loss, net | — | (18.6) | ||||||||||||||
Comparable earnings from continuing operations before income taxes* | $ | (73.0) | 108.8 | ||||||||||||||
Provision for (benefit from) income taxes | $ | 0.3 | 50.2 | ||||||||||||||
Tax adjustments | — | (3.5) | |||||||||||||||
Income tax effects of non-GAAP adjustments** | 4.8 | 7.9 | |||||||||||||||
Comparable provision for (benefit from) income taxes* | $ | 5.1 | 54.6 | ||||||||||||||
Earnings (loss) from continuing operations | $ | (91.5) | 29.8 | ||||||||||||||
Non-operating pension costs | Non-operating pension costs | 4.9 | 14.3 | ||||||||||||||
Restructuring and other, net | Restructuring and other items, net | 4.0 | 10.4 | ||||||||||||||
ERP implementation costs | Restructuring and other items, net | 4.5 | 10.1 | ||||||||||||||
Gains on sale of properties | Miscellaneous (income) loss, net | — | (13.8) | ||||||||||||||
Tax adjustments | Provision for income taxes | — | 3.5 | ||||||||||||||
Comparable earnings (loss) from continuing operations* | $ | (78.1) | 54.2 | ||||||||||||||
Tax rate on continuing operations | 0.3 | % | 62.7 | % | |||||||||||||
Tax adjustments and income tax effects of non-GAAP adjustments** | 6.7 | % | (12.5) | % | |||||||||||||
Comparable tax rate on continuing operations** | 7.0 | % | 50.2 | % | |||||||||||||
FREE CASH FLOW FORECAST RECONCILIATION | |||||
2020 Forecast | |||||
Net cash provided by operating activities from continuing operations | $2,000 - $2,100 | ||||
Sales of operating property and equipment (1) | 500 - 600 | ||||
Purchases of property and revenue earning equipment (1) | (1,100 - 1,200) | ||||
Free cash flow * | $1,400 - $1,500 | ||||