Market Overview

Ryder Reports Second Quarter 2018 Results

Share:
  • Q2 GAAP EPS from Continuing Operations Down $0.15 or 15% to $0.82,
    Includes $0.52 Charge from Tax Reform-Related and Other Tax Adjustments
  • Q2 Comparable EPS (non-GAAP) from Continuing Operations Up $0.42 or
    42% to $1.42, Reflects Strong Operating Performance and a Lower Tax
    Rate from Tax Reform
  • Record Q2 Total Revenue Grows 17% to $2.1 Billion; Record Q2
    Operating Revenue (non-GAAP) Up 11% to $1.6 Billion
  • Increased Full-Year 2018 GAAP EPS Forecast Range of $4.71 to $4.91
    vs. Prior Forecast of $4.55 to $4.80
  • Increased Full-Year 2018 Comparable EPS Forecast Range (non-GAAP)
    of $5.62 to $5.82 vs. Prior Forecast of $5.45 to $5.70

Ryder System, Inc. (NYSE:R), a leader in commercial fleet
management
, dedicated
transportation
, and supply
chain
solutions, today reported second quarter earnings and revenue.
Results for the three months ended June 30 were as follows:

     
(dollars in millions, except EPS) Earnings Before Taxes Earnings Diluted Earnings Per Share
2018   2017   Change 2018   2017   Change 2018   2017   Change
GAAP $ 98.3   80.9   22% $ 43.5   51.4   (15)% $ 0.82   0.97   (15)%
Non-operating pension costs 0.9 6.6 0.3 3.8 0.01 0.07
Restructuring and other, net 3.6 (2.6 ) 3.0 (2.1 ) 0.07 (0.04 )
Tax Reform-related and other tax adjustments           27.9           0.52          
Comparable (non-GAAP) $ 102.8     84.9     21% $ 74.8     53.1     41% $ 1.42     1.00     42%
 

In the second quarter, the Company reported record total revenue and
record operating revenue (a non-GAAP measure excluding all fuel and
subcontracted transportation). Total revenue and operating revenue grew
across all three business segments reflecting new business and higher
volumes. Additionally, Supply Chain Solutions (SCS) revenue growth
benefited from the acquisition of MXD Group, Inc. Total revenue also
grew due to higher fuel costs passed through to customers.

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

         
(in millions) Total Revenue Operating Revenue (non-GAAP)
2018   2017   % Change 2018   2017   % Change
Total $ 2,089.3   1,788.0   17% $ 1,639.1   1,483.2   11%
FMS $ 1,295.5 1,163.6 11% $ 1,080.2 998.6 8%
DTS $ 330.6 272.4 21% $ 213.8 199.8 7%
SCS $ 604.5 465.7 30% $ 430.1 358.8 20%
 

Commenting on the Company's second quarter results, Ryder Chairman and
CEO Robert Sanchez said, "Our results exceeded expectations driven by
strong performance in our supply chain, rental, and dedicated
businesses. SCS earnings outperformed due to increased volumes and
stronger operating results. In FMS, rental demand and utilization
continued at a robust level. Additionally, used vehicle sales results
came in somewhat better than anticipated. DTS benefited from better than
expected insurance results and operating performance.

"We're excited to deliver year-over-year pretax earnings growth in each
business segment. Pretax earnings grew by over 20%, reflecting revenue
growth, benefits of cost reductions, and improved used vehicle results.

"We are pleased with our overall double digit revenue growth with strong
increases in all three business segments, benefiting from a strong
freight environment and new outsourcing wins. Ryder's largest product
line, ChoiceLease, grew organically by 3,100 vehicles year-to-date. We
continue to successfully penetrate non-outsourced markets and are also
seeing fleet expansion with current customers. Continuing our momentum
from record sales in 2017, we again achieved record sales in the first
half, driven by ChoiceLease and Dedicated Transportation Solutions,
positioning us well for accelerating contractual revenue growth.

"During the quarter, we closed on the previously announced MXD Group
acquisition, creating the foundation of e-fulfillment and final mile
capabilities for big and bulky goods for Ryder's Last Mile e-commerce
business. In addition, we acquired Metro Truck & Tractor Leasing, Inc.,
expanding Ryder's presence in the Baltimore area. We also introduced RyderGyde™,
a mobile fleet management app that provides drivers and fleet managers a
customized, streamlined digital experience to more efficiently manage
their fleets."

Second Quarter Business Segment Operating Results

Fleet Management Solutions

In the Fleet Management Solutions (FMS) business segment, total revenue
was $1.30 billion, up 11% compared with $1.16 billion in the
year-earlier period. FMS operating revenue (a non-GAAP measure excluding
fuel) was $1.08 billion, up 8% from the year-earlier period. Ryder
ChoiceLeaseTM (lease) revenue increased 6% reflecting a
larger average fleet size and higher prices on replacement vehicles. The
ending lease fleet increased organically by 3,100 vehicles year-to-date. Commercial
rental
revenue increased 17% from the year-earlier period due to
higher demand and higher pricing. Fuel services revenue increased 30%,
primarily reflecting higher fuel costs passed through to customers. On
June 15, 2018, the Company acquired Metro Truck & Tractor Leasing, Inc.
(Metro), a full service leasing, rental, and maintenance company, which
added approximately 900 vehicles to Ryder's FMS fleet. The financial
results of Metro were not material to FMS results for the quarter.

FMS earnings before tax were $72.9 million, up 7% compared with $68.1
million in the same period of 2017, primarily reflecting higher
commercial rental and used vehicle sales results. Commercial rental
performance improved due to increased utilization reflecting stronger
demand and higher pricing. Rental power fleet utilization was 79.4% for
the second quarter, up 380 basis points from the year-earlier period.
Favorable used vehicle sales comparisons primarily reflect higher
inventory valuation adjustments in the prior year. Lease results
benefited from fleet growth as vehicles from recent record sales
activity began to be placed into service. These results were offset by
higher depreciation of $10 million due to vehicle residual value changes
and by higher maintenance costs on certain older model year vehicles.
FMS earnings before tax as a percentage of FMS total revenue and FMS
operating revenue (a non-GAAP measure) were 5.6% and 6.7%, respectively,
down 30 basis points and 10 basis points from the prior year.

Dedicated Transportation Solutions

In the Dedicated Transportation Solutions (DTS) business segment, total
revenue was up 21% to $331 million and DTS operating revenue (a non-GAAP
measure excluding fuel and subcontracted transportation) was up 7% to
$214 million compared with the year-earlier period. DTS total and
operating revenue growth reflects increased volumes and new business.

DTS earnings before tax of $18.5 million increased 25% compared with
$14.8 million in 2017, due to revenue growth and improved operating
performance. DTS earnings before tax as a percentage of DTS total
revenue and DTS operating revenue (a non-GAAP measure) were 5.6% and
8.6%, respectively, up 20 and 120 basis points from the year-earlier
period.

Supply Chain Solutions

In the Supply Chain Solutions (SCS) business segment, total revenue was
up 30% to $605 million and SCS operating revenue (a non-GAAP measure
excluding fuel and subcontracted transportation) was up 20% to $430
million compared with the year-earlier period. SCS operating revenue
growth largely reflects new business and increased volumes. Total and
operating revenue growth also reflect the acquisition of MXD Group, Inc.
(MXD) on April 2, 2018. MXD is an e-fulfillment and last mile delivery
provider for big and bulky goods with a national network of facilities.
MXD is expected to add approximately $220 million in annual total
revenue.

SCS earnings before tax of $37.7 million increased 45% in the second
quarter of 2018 compared with $26.1 million in 2017, driven by revenue
growth and better operating results, including improved performance on
new account startups. SCS earnings before tax as a percentage of SCS
total revenue and SCS operating revenue (a non-GAAP measure) were 6.2%
and 8.8%, respectively, up 60 basis points and up 150 basis points from
the prior year.

Corporate Financial Information

Central Support Services

Central Support Services (CSS) are overhead costs incurred to support
all business segments and product lines. Most CSS costs are allocated to
the business segments. In the second quarter of 2018, unallocated CSS
costs decreased slightly from the year-earlier period to $11 million.

Income Taxes

The Company's effective income tax rate for the second quarter of 2018,
increased to 55.7%, reflecting a $29 million adjustment to the
provisional estimate for the one-time transition tax associated with the
2017 Tax Cuts and Jobs Act (Tax Reform), partially offset by a lower
federal tax rate related to Tax Reform as well as other tax law changes.
On April 2, 2018, the Internal Revenue Service issued Notice 2018-26,
which required the Company to increase the provisional estimate recorded
as of December 31, 2017. The comparable effective income tax rate (a
non-GAAP measure) from continuing operations for the second quarter of
2018, decreased to 27.2%, reflecting a lower federal tax rate due to Tax
Reform.

Items Excluded from Segment and Comparable Earnings

Non-operating components of pension costs are excluded from both segment
earnings before tax and comparable earnings (a non-GAAP measure) to more
accurately reflect the operating performance of the business.
Non-operating pension costs totaled $0.9 million ($0.3 million after
tax) or $0.01 per diluted share in the second quarter of 2018, down from
$6.6 million ($3.8 million after tax) or $0.07 per diluted share in the
year-earlier period.

Second quarter 2018 results include restructuring and other charges, net
of $3.6 million ($3.0 million after tax) or $0.07 per diluted share,
primarily related to the upcoming exit of the Company's Singapore
operations partially offset by property gains associated with prior year
restructuring activities. Second quarter 2017 results include
restructuring credits of $2.6 million ($2.1 million after tax) or $0.04
per diluted share related to property gains associated with
restructuring activities.

Capital Expenditures

Year-to-date capital expenditures increased to $1.5 billion in 2018,
compared with $933 million in 2017. The increase in capital expenditures
reflects higher planned investments to grow and refresh the lease and
rental fleets. Proceeds of $202 million, primarily from used vehicle
sales, decreased 2%. Net capital expenditures (including proceeds from
the sale of assets) were $1.29 billion in 2018, up from $727 million in
2017. The Company is increasing its forecast for gross capital
expenditures from $3.0 billion to $3.1 billion and its forecast for net
capital expenditures from $2.6 billion to $2.7 billion, primarily
reflecting increased contractual lease sales activity.

Cash Flow and Leverage

Year-to-date operating cash flow was $820 million, up 12% from $732
million in 2017. Total cash generated (a non-GAAP measure that includes
proceeds from used vehicle sales) was $1.06 billion, compared with $971
million in 2017. Free cash flow (a non-GAAP measure) was negative $359
million, compared with positive $115 million in 2017, reflecting
increased net capital spending. The Company's full-year 2018 forecast
for operating cash flow remains unchanged at approximately $1.8 billion.
The Company's full-year free cash flow forecast also remains unchanged
at negative $750 million, primarily reflecting growth-related capital
spending.

Total debt as of June 30, 2018 was $6.0 billion, up from $5.4 billion in
2017. Debt to equity for the second quarter of 2018 was 210% compared
with 191% at year-end 2017, within Ryder's long-term target range of
200% to 250%.

2018 Earnings Forecast

Commenting on the Company's outlook, Mr. Sanchez said, "We are raising
our full year earnings forecast based on our earnings outperformance in
the second quarter.

"For the second half of the year, we anticipate continued strong
year-over-year improvement in rental, supply chain, and dedicated,
moderately better than our prior outlook. We expect the healthy freight
environment to continue to drive stronger rental utilization through the
balance of the year. In both DTS and SCS, we anticipate double-digit
revenue growth and continued strong results, building on sales and
operational improvements, as well as the benefits of the MXD acquisition
in SCS.

"We are forecasting used vehicle pricing to remain generally consistent
with recent levels. We also expect continued solid used vehicle sales
volumes, and are now forecasting year end used vehicle inventory to be
in the lower end of our target range, positioning us well going forward.

"Based on robust year-to-date lease sales activity, we now expect record
full-year organic lease growth of 8,500 units compared to an original
forecast of 6,500. Although we continue to exceed our sales expectations
in lease, we now anticipate that manufacturer production delays will
impact the timing of the deliveries of our lease vehicles. A portion of
vehicle deliveries are now likely to be pushed back until later in the
year, delaying the revenue and earnings benefits until 2019.

"We anticipate solid improvements in rental, supply chain, dedicated,
and lease sales, however, given the delayed timing of vehicle
deliveries, we are maintaining our overall earnings outlook for the
second half of the year in line with our prior forecast."

In light of these factors, Ryder is increasing its full-year 2018 GAAP
EPS forecast to a range of $4.71 to $4.91, as compared to the prior
forecast of $4.55 to $4.80. In 2017, full-year GAAP EPS was $14.88 and
included a benefit from Tax Reform. The Company is also increasing its
forecast for full-year 2018 comparable EPS from continuing operations to
$5.62 to $5.82, from the prior forecast of $5.45 to $5.70, and compared
with $4.53 in 2017.

Ryder is establishing a third quarter 2018 GAAP EPS forecast of $1.53 to
$1.63, compared with $1.11 in the third quarter 2017. The Company is
also establishing a third quarter 2018 forecast for comparable EPS from
continuing operations of $1.55 to $1.65, compared with $1.34 in the
third quarter 2017. The third quarter year-over-year forecast reflects
more challenging prior year used vehicle comparisons.

Supplemental Company Information

Second Quarter Net Earnings

     
(dollars in millions, except EPS) Earnings Diluted EPS
2018   2017 2018   2017
Earnings from continuing operations $ 43.5 51.4 $ 0.82 0.97
Discontinued operations (1.3 ) (0.5 ) (0.02 ) (0.01 )
Net earnings $ 42.3   50.9   $ 0.80   0.96  
 

Year-to-Date Operating Results

 
(in millions) Six months ended June 30
2018   2017   Change
Total revenue $ 3,993 3,525 13 %
Operating revenue (non-GAAP) $ 3,182 2,928 9 %
             
 
Earnings from continuing operations $ 77.5 89.9 (14 )%
Comparable earnings from continuing operations (non-GAAP) $ 123.2 97.6 26 %
Net earnings $ 75.8 89.3 (15 )%
             
 
Earnings per common share (EPS) - Diluted
Continuing operations $ 1.46 1.69 (14 )%
Comparable (non-GAAP) $ 2.33 1.83 27 %
Net earnings $ 1.43 1.67 (14 )%
 

Business Description

Ryder System, Inc. is a FORTUNE 500® commercial fleet management,
dedicated transportation, and supply chain 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:

  • 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 commercial 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.
  • Dedicated
    Transportation Solutions
    - Ryder's DTS business segment combines
    the best of Ryder's leasing and maintenance capability with the safest
    and most professional drivers in the industry. With a dedicated
    transportation solution, Ryder helps customers increase their
    competitive position, reduce risk, and integrate their transportation
    needs with their overall supply chain.
  • 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.

Notations

Earnings Before Tax (EBT): Ryder's primary measurement of
business segment financial performance, earnings before tax (EBT),
allocates Central Support Services to each business segment and excludes
restructuring and other items, as well as non-operating pension costs.

Capital Expenditures: In Ryder's business, capital
expenditures are generally used to purchase revenue earning equipment
(trucks, tractors, and trailers) primarily to support the ChoiceLease
product line and secondarily to support the commercial rental product
line within Ryder's FMS business segment. The level of capital required
to support the ChoiceLease product line varies directly with customer
contract signings for growth and replacement vehicles. These contracts
are long-term agreements that result in ongoing 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 Ryder's fleet available for shorter-term use by
contractual or occasional customers.

For more information on Ryder System, Inc., visit http://investors.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 expectations regarding
market trends and economic conditions, manufacturer production and
delivery schedules,
revenue and earnings performance, fleet
growth, performance in our product lines and segments, the strength of
our sales pipeline, demand, utilization and pricing trends in commercial
rental, volumes and pricing trends in used vehicle sales, used vehicle
inventory levels, residual values, return on capital spread, operating
cash flow, free cash flow, capital expenditures, our ability to make
investments in sales, marketing, IT and new product initiatives,
benefits of our sales and marketing initiatives, ability to achieve
expected acquisition-related financial benefits, the impact from tax
reform on our earnings, and the impact and adequacy of steps we have
taken to address our cost structure. 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 adapt to changing
market conditions, lower than expected contractual sales, decreases in
commercial rental demand or poor acceptance of rental pricing,
availability of rental vehicles to meet demand and availability of labor
to maintain our fleet at normalized levels, worsening of market demand
for used vehicles impacting current pricing and our anticipated
proportion of retail versus wholesale sales, lack of customer demand for
our services, higher than expected maintenance costs due to, among other
things, lower than expected benefits from maintenance initiatives and a
newer fleet, setbacks or uncertainty in the economic market,
implementation or enforcement of regulations, decreases in freight
demand or volumes, poor operational execution particularly with new
accounts and
product launches, our ability to obtain adequate
profit margins for our services, our inability to maintain current
pricing levels due to soft economic conditions, business interruptions
or expenditures due to severe weather or natural occurrences,
competition from other service providers and new entrants, customer
retention levels, loss of key customers, driver and technician shortages
resulting in higher procurement costs and turnover rates, unexpected bad
debt reserves or write-offs, changes in customers' business environments
that will limit their ability to commit to long-term vehicle leases, a
decrease in credit ratings, increased debt costs, adequacy of accounting
estimates, reserves and accruals particularly with respect to pension,
taxes, depreciation, insurance and revenue, sudden or unusual changes in
fuel prices, unanticipated currency exchange rate fluctuations, our
ability to manage our cost structure, 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
includes certain non-GAAP financial measures as defined under SEC rules,
including:

Comparable Earnings Measures, including comparable earnings from
continuing operations, comparable earnings per share from continuing
operations (as well as forecasts), comparable earnings before income tax
and comparable effective income tax rate, and comparable earnings before
interest, taxes, depreciation and amortization. Additionally, our
adjusted return on average capital (ROC) and adjusted return on capital
spread (ROC spread) measures are calculated based on comparable earnings
items.

Operating Revenue Measures, including operating revenue for Ryder
and its business segments, and segment EBT as a percentage of operating
revenue.

Cash Flow Measures, including total cash generated and free cash
flow.

Refer to Appendix - Non-GAAP Financial Measure Reconciliations at the
end of the tables following this press release for reconciliations of
the non-GAAP financial measures contained in this release to the nearest
GAAP measure. Additional information regarding non-GAAP financial
measures as required by Regulation G and Item 10(e) of Regulation S-K
can be found in our most recent Form 10-K, Form 10-Q and our Form 8-K
filed as of the date of this release with the SEC, which are available
at http://investors.ryder.com.

Conference Call and Webcast Information:

Ryder's earnings conference call and webcast is scheduled for Wednesday,
July 25, 2018, from 11:00 a.m. to 12:00 noon Eastern Time. Speakers will
be Chairman and Chief Executive Officer Robert Sanchez, and Executive
Vice President and Chief Financial Officer Art Garcia. To join please
click the below URL five minutes prior to the start of the webcast. You
will need to complete the registration page to gain access to the
webcast.

Ryder Second Quarter Earnings Call Webcast URL: https://pgi.webcasts.com/starthere.jsp?ei=1197967&tp_key=e5f8e51d19

If you do not have computer speakers or headphones and/or would like to
dial-into the webcast, please dial into the phone bridge below. In
addition, please click the "listen by phone" option on the webcast
player for the optimal viewing experience.

LIVE AUDIO VIA PHONE

Please dial the audio phone number approximately 10 minutes prior
to the start of the call.

Toll Free Number 888-352-6803
USA Toll Number: 323-701-0225
Audio Passcode: Ryder
Conference Leader: Bob Brunn
 

AUDIO REPLAY VIA PHONE

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

AUDIO REPLAY VIA MP3 DOWNLOAD

A podcast of the call will be available within 24 hours after the end of
the call at http://investors.ryder.com.
Interested listeners may download the audio file and either save or
listen to it on their computer or any portable MP3 player. Go to http://investors.ryder.com,
select Financials/Quarterly Reports and the date in order to access the
file.

AUDIO & SLIDE REPLAY VIA INTERNET

An audio replay including the slide presentation will be available on
the Internet within two hours following the call. Go to http://investors.ryder.com,
select Financials/Quarterly Reports and the date in order to access the
file.

   

RYDER SYSTEM, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS - UNAUDITED

Periods ended June 30, 2018 and 2017

(In millions, except per share amounts)

 
Three Months Six Months
2018   2017 2018   2017
 
Lease and rental revenues $ 858.0 797.0 $ 1,682.3 1,564.6
Services revenue 1,072.3 865.8 2,000.5 1,706.5
Fuel services revenue 159.0   125.2   310.1   253.9  
Total revenues 2,089.3   1,788.0   3,992.8   3,525.0  
 
Cost of lease and rental 636.4 578.4 1,255.6 1,157.2
Cost of services 906.0 729.6 1,693.3 1,432.5
Cost of fuel services 155.6 121.6 302.5 247.5
Other operating expenses 30.9 27.4 64.4 58.7
Selling, general and administrative expenses 212.9 201.5 421.8 402.6
Non-operating pension costs 0.9 6.6 2.1 13.9
Used vehicle sales, net 6.0 15.3 13.4 14.5
Interest expense 42.4 34.9 80.2 69.7
Miscellaneous income, net (3.6 ) (5.5 ) (6.1 ) (10.4 )
Restructuring and other charges, net 3.6   (2.6 ) 19.4   (2.6 )
1,991.1   1,707.2   3,846.4   3,383.5  
 
Earnings from continuing operations before income taxes 98.3 80.9 146.4 141.5
Provision for income taxes 54.8   29.5   68.9   51.5  
Earnings from continuing operations 43.5 51.4 77.5 89.9
Loss from discontinued operations, net of tax (1.3 ) (0.5 ) (1.7 ) (0.7 )
Net earnings $ 42.3   50.9   $ 75.8   89.3  
 
Earnings (loss) per common share - Diluted
Continuing operations $ 0.82 0.97 $ 1.46 1.69
Discontinued operations (0.02 ) (0.01 ) (0.03 ) (0.01 )
Net earnings $ 0.80   0.96   $ 1.43   1.67  
 
Earnings per share information - Diluted
Earnings from continuing operations $ 43.5 51.4 $ 77.5 89.9
Less: Distributed and undistributed earnings allocated to unvested
stock
(0.2 ) (0.2 ) (0.3 ) (0.3 )
Earnings from continuing operations available to common stockholders $ 43.4   51.2   $ 77.2   89.6  
 
Weighted-average shares outstanding - Diluted 52.6   52.9   52.7   53.2  
 
EPS from continuing operations $ 0.82 0.97 $ 1.46 1.69
Non-operating pension costs 0.01 0.07 0.02 0.15
Tax Reform-related and other tax adjustments 0.52 0.55
Restructuring and other, net 0.07 (0.04 ) 0.07 (0.04 )
Goodwill impairment 0.29
Uncertain tax position adjustment (0.06 )
Operating tax adjustment       0.03  
Comparable EPS from continuing operations * $ 1.42   1.00   $ 2.33   1.83  
 
* 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

CONSOLIDATED CONDENSED BALANCE SHEETS - UNAUDITED

(Dollars in millions)

 

June 30,
2018

December 31,
2017

 
Assets:
Cash and cash equivalents $ 73.6 78.3
Other current assets 1,294.2 1,244.5
Revenue earning equipment, net 8,846.8 8,355.3
Operating property and equipment, net 823.9 776.7
Other assets 1,190.4   1,009.1
$ 12,228.9   11,464.0
 
Liabilities and shareholders' equity:
Current liabilities $ 1,278.0 1,188.9
Total debt 5,977.9 5,409.7
Other non-current liabilities (including deferred income taxes) 2,131.5 2,023.8
Shareholders' equity 2,841.4   2,841.7
$ 12,228.9   11,464.0
 
   

SELECTED KEY RATIOS AND METRICS

 
June 30,
2018

December 31,
2017

 
Debt to equity 210 % 191 %
Effective interest rate (average cost of debt)

2.9

% 2.6 %
 
 
Six months ended June 30,
2018   2017
 
Cash provided by operating activities from continuing operations $ 820.4 731.7
Free cash flow * (359.4 ) 115.3
Capital expenditures paid 1,421.3 855.3
 
Capital expenditures (accrual basis) $ 1,496.6 933.0
Less: Proceeds from sales (primarily revenue earning equipment) (202.1 ) (206.0 )
Net capital expenditures $ 1,294.5   727.0  
 
 
Twelve months ended June 30,
2018   2017
 
Return on average shareholders' equity*** 30.1 % 10.7 %
Return on average assets*** 6.7 % 2.0 %
Adjusted return on capital * 4.6 % 4.2 %
Weighted average cost of capital 4.5 % 4.3 %
Return on capital spread ** 0.1 % (0.1 )%
 
* 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.
** Non-GAAP financial measure. Adjusted return on capital spread is
calculated as the difference of the adjusted return on capital and
the weighted average cost of capital.
*** 2018 calculations include the benefit from Tax Reform recorded
in the fourth quarter of 2017.
 
Note: Amounts may not be additive due to rounding.
   

RYDER SYSTEM, INC. AND SUBSIDIARIES

BUSINESS SEGMENT REVENUE AND EARNINGS - UNAUDITED

Periods ended June 30, 2018 and 2017

(Dollars in millions)

 
Three Months Six Months
2018   2017   B(W) 2018   2017   B(W)
 
Total Revenue:
Fleet Management Solutions:
ChoiceLease $ 700.8 662.5 6 % $ 1,391.2 1,318.8 5 %
SelectCare 125.3 117.4 7 % 247.1 231.0 7 %
Commercial rental 232.4 199.3 17 % 437.0 373.3 17 %
Other 21.8 19.4 12 % 43.7 37.7 16 %
Fuel services revenue 215.2   165.0   30 % 419.0   335.3   25 %
Total Fleet Management Solutions 1,295.5 1,163.6 11 % 2,538.0 2,296.0 11 %
Dedicated Transportation Solutions 330.6 272.4 21 % 629.6 539.1 17 %
Supply Chain Solutions 604.5 465.7 30 % 1,099.2 917.3 20 %
Eliminations (141.3 ) (113.7 ) (24 )% (274.1 ) (227.4 )

(20

)%
Total revenue $ 2,089.3   1,788.0   17 % $ 3,992.8   3,525.0   13 %
 
 
Operating Revenue: *
Fleet Management Solutions $ 1,080.2 998.6 8 % $ 2,119.0 1,960.8 8 %
Dedicated Transportation Solutions 213.8 199.8 7 %

415.2

393.1

6 %
Supply Chain Solutions 430.1 358.8 20 %

812.9

720.5

13 %
Eliminations (85.0 ) (73.9 ) (15 )% (165.1 ) (146.1 ) (13 )%
Operating revenue $ 1,639.1   1,483.2   11 % $ 3,182.1   2,928.4   9 %
 
 
Business segment earnings:

Earnings from continuing operations before income taxes:

Fleet Management Solutions $ 72.9 68.1 7 % $ 122.7 120.4 2 %
Dedicated Transportation Solutions 18.5 14.8 25 %

31.5

26.1

21 %
Supply Chain Solutions 37.7 26.1 45 %

63.9

54.1

18 %
Eliminations (15.3 ) (12.4 ) (24 )% (28.6 ) (23.6 ) (21 )%
113.7 96.6 18 % 189.5 177.0 7 %
Unallocated Central Support Services (11.0 ) (11.8 ) 7 % (21.7 ) (22.0 ) 1 %
Non-operating pension costs (0.9 ) (6.6 ) NM (2.1 ) (13.9 ) NM
Other items (3.6 ) 2.6   NM (19.4 ) 0.4   NM
Earnings from continuing operations before income taxes 98.3 80.9 22 % 146.4 141.5 3 %
Provision for income taxes 54.8   29.5   (86 )% 68.9   51.5   (34 )%
Earnings from continuing operations $ 43.5   51.4   (15 )% $ 77.5   $ 89.9   (14 )%
 
* 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 INFORMATION - UNAUDITED

Periods ended June 30, 2018 and 2017

(Dollars in millions)

 
Three Months Six Months
2018   2017   B(W) 2018   2017   B(W)
 
Fleet Management Solutions
 
FMS total revenue $ 1,295.5 1,163.6 11 % $ 2,538.0 2,296.0 11 %
Fuel services revenue(a) (215.2 ) (165.0 ) 30 % (419.0 ) (335.3 ) 25 %
FMS operating revenue * $ 1,080.2   998.6   8 % $ 2,119.0   1,960.8   8 %
 
Segment earnings before income taxes $ 72.9   68.1   7 % $ 122.7   120.4   2 %
 
FMS earnings before income taxes as % of FMS total revenue 5.6 % 5.9 % 4.8 % 5.2 %
 
FMS earnings before income taxes as % of FMS operating revenue * 6.7 % 6.8 % 5.8 % 6.1 %
 
 
Dedicated Transportation Solutions
 
DTS total revenue $ 330.6 272.4 21 % $ 629.6 539.1 17 %
Subcontracted transportation (80.4 ) (45.1 ) 78 % (144.1 ) (90.4 ) 59 %
Fuel (36.4 ) (27.5 ) 32 % (70.3 ) (55.5 ) 27 %
DTS operating revenue * $ 213.8   199.8   7 % $ 415.2   393.1   6 %
 
Segment earnings before income taxes $ 18.5   14.8   25 % $ 31.5   26.1   21 %
 
DTS earnings before income taxes as % of DTS total revenue 5.6 % 5.4 % 5.0 % 4.8 %
 
DTS earnings before income taxes as % of DTS operating revenue * 8.6 % 7.4 % 7.6 % 6.6 %
 
 
Supply Chain Solutions
 
SCS total revenue $ 604.5 465.7 30 % $ 1,099.2 917.3 20 %
Subcontracted transportation (147.0 ) (90.0 ) 63 % (233.8 ) (161.4 ) 45 %
Fuel (27.5 ) (16.9 ) 62 % (52.5 ) (35.4 ) 48 %
SCS operating revenue * $ 430.1   358.8   20 % $ 812.9   720.5   13 %
 
Segment earnings before income taxes $ 37.7   26.1   45 % $ 63.9   54.1   18 %
 
SCS earnings before income taxes as % of SCS total revenue 6.2 % 5.6 % 5.8 % 5.9 %
 
SCS earnings before income taxes as % of SCS operating revenue * 8.8 % 7.3 % 7.9 % 7.5 %
 
* Non-GAAP financial measure. A reconciliation of (1) GAAP total
revenue to operating revenue for each business segment (FMS, DTS and
SCS) and (2) segment earnings before taxes (EBT) as % of segment
total revenue to segment EBT as % of segment operating revenue for
each business segment is set forth in this table.
 
Note: Amounts may not be additive due to rounding.
 
(a) Includes intercompany fuel sales from FMS.
     

RYDER SYSTEM, INC. AND SUBSIDIARIES

BUSINESS SEGMENT INFORMATION - UNAUDITED

KEY PERFORMANCE INDICATORS

 
Three months ended June 30, Six months ended June 30, Change 2018/2017
2018   2017 2018   2017

Three
months

 

Six
Months

 
ChoiceLease
Average fleet count 141,600 138,000 140,800 137,500 3% 2%
End of period fleet count 143,000 137,200 143,000 137,200 4% 4%
Miles/unit per day change - % (a) 0.5 % (1.7 )% (0.6 )% (0.2 )%
 
 
Commercial rental
Average fleet count 40,600 37,400 39,600 37,400 9%

6%

End of period fleet count 41,600 37,400 41,600 37,400 11%

11%

Rental utilization - power units 79.4 % 75.6 % 77.1 % 71.4 % 380 bps 570 bps
Rental rate change - % (b) 2.8 % 0.8 % 3.1 % 1.0 %
 
 
Customer vehicles under
SelectCare contracts
Average fleet count 55,000 51,200 54,300 50,700 7% 7%
End of period fleet count 56,000 51,700 56,000 51,700 8% 8%
 
 
Customer vehicles under
SelectCare on-demand (c)
Fleet serviced during the period 8,600 9,800 13,800 15,900 (12)% (13)%
 
 
DTS
Average fleet count (d) 8,700 8,200 8,600 8,200 6% 5%
End of period fleet count (d) 8,900 8,100 8,900 8,100 10% 10%
 
 
SCS
Average fleet count (d) 8,500 7,800 8,500 7,600 9% 12%
End of period fleet count (d) 8,600 7,900 8,600 7,900 9% 9%
 
 
Used vehicle sales (UVS)
Average UVS inventory 5,800 6,800 5,900 6,900 (15)% (14)%
End of period fleet count 5,600 7,500 5,600 7,500 (25)% (25)%
Used vehicles sold 4,700 4,300 8,900 8,900 9% —%
UVS pricing change - % (e)
Tractors 5 % (16 )% 5 % (16 )%
Trucks 9 % (14 )% 6 % (17 )%
 

Notes:

(a) Represents the percentage change compared to prior year period in
miles driven per vehicle per workday on US lease power units.
(b) Represents percentage change compared to prior year period in
average global rental rate per day on power units using constant
currency.
(c) 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.
(d) These vehicle counts are also included within the average fleet
counts for ChoiceLease, Commercial Rental and SelectCare.
(e) 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 presentation:

 
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

DTS Operating Revenue DTS Total Revenue
SCS Operating Revenue   SCS Total Revenue  
FMS EBT as a % of FMS Operating Revenue FMS EBT as a % of FMS Total Revenue Business Segment Information - Unaudited
DTS EBT as a % of DTS Operating Revenue DTS EBT as a % of DTS Total Revenue
SCS EBT as a % of SCS Operating Revenue   SCS EBT as a % of SCS 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 and Comparable EPS Forecast   EPS from Continuing Operations
EPS Forecast from Continuing
Operations
  Consolidated Condensed Statements of Earnings - Unaudited
Appendix
- Non-GAAP Financial Measure Reconciliations (Forecast)
Adjusted Return on Average 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 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
 
       

RYDER SYSTEM, INC. AND SUBSIDIARIES

APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS -
UNAUDITED

(Dollars in millions)

 

OPERATING REVENUE RECONCILIATION

 
Three months ended June 30, Six months ended June 30,
2018 2017 2018 2017
 
Total revenue $ 2,089.3 1,788.0 $ 3,992.8 3,525.0
Fuel (222.9 ) (169.6 ) (432.8 ) (344.9 )
Subcontracted transportation (227.3 ) (135.2 ) (377.9 ) (251.8 )
Operating revenue * $ 1,639.1   1,483.2   $ 3,182.1   2,928.4  
 
   

TOTAL CASH GENERATED/FREE CASH FLOW
RECONCILIATION

 
Six months ended June 30,
2018 2017
 
Net cash provided by operating activities from continuing operations $ 820.4 731.7
Proceeds from sales (primarily revenue earning equipment) (a) 202.1 206.0
Collections on direct finance leases and other items (a) 39.4   32.8  
Total cash generated * 1,061.9 970.5
Purchases of property and revenue earning equipment (a) (1,421.3 ) (855.3 )
Free cash flow ** $ (359.4 ) 115.3  
 
Memo:
Net cash provided by (used in) financing activities $ 519.1 (122.0 )
Net cash used in investing activities $ (1,348.9 ) (616.4 )
 

Notes:

(a) Included in cash flows from investing activities.
** Non-GAAP financial measure.
** Non-GAAP financial measure. We refer to the net amount of cash
generated from operating activities and investing activities
(excluding changes in restricted cash and acquisitions) from
continuing operations as "free cash flow". We calculate free cash
flow as the sum of net cash provided by operating activities and net
cash provided by the sale of revenue earning equipment and operating
property and equipment, collections on direct finance leases and
other cash inflows from investing activities, less purchases of
property and revenue earning equipment.
 
Note: Amounts may not be additive due to rounding.
   

RYDER SYSTEM, INC. AND SUBSIDIARIES

APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS -
UNAUDITED

(Dollars in millions)

 

ADJUSTED RETURN ON CAPITAL RECONCILIATION

 
Twelve months ended June 30,
2018 2017
 
Net earnings (12-month rolling period) $

777.3

221.2

+ Restructuring and other items 48.0

4.5

+ Income taxes

(458.9

)

117.4

 
Adjusted earnings before income taxes

366.5

343.1

+ Adjusted interest expense (a)

151.1

142.6

- Adjusted income taxes (b) (155.0 )

(169.1

)
= Adjusted net earnings for ROC (numerator) [A] $

362.5

 

316.6

 
 
Average total debt $

5,515.3

5,431.2

Average off-balance sheet debt

3.3

1.1

Average shareholders' equity

2,589.5

2,076.4

Adjustment to equity (c)

(134.4

) 1.0  
Adjusted average total capital (denominator) [B] $

7,973.7

 

7,509.7

 
 
Adjusted ROC * [A]/[B] 4.6 % 4.2 %
 
Weighted average cost of capital 4.5 % 4.3 %
 
Adjusted return on capital spread 0.1 % (0.1 )%
 

Notes:

(a) Represents reported interest expense plus imputed interest on
off-balance sheet obligations.
(b) Represents provision for income taxes plus income taxes on
restructuring and other items and adjusted interest expense.
(c) Represents the impact to equity of items to arrive at comparable
earnings.
* 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
total debt and average shareholders' equity to adjusted average
total capital 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

(Dollars in millions)

 

COMPARABLE EARNINGS BEFORE INTEREST,
TAXES, DEPRECIATION AND AMORTIZATION

   
Three months ended June 30,
2018 2017
 
Earnings from continuing operations $ 43.5 51.4
+ Provision for income taxes 54.8   29.5  
Earnings before income taxes from continuing operations 98.3   80.9  
+ Non-operating pension costs 0.9 6.6
+ Restructuring and other, net 3.6   (2.6 )
Comparable earnings before income taxes from continuing operations 102.8   84.9  
+ Interest expense 42.4 34.9
+ Depreciation 344.5 309.8
+ Losses from used vehicle fair value adjustments 14.0 25.7
+ Amortization 2.0   1.4  
Comparable EBITDA $ 505.7   456.6  
 
 

COMPARABLE EARNINGS BEFORE INTEREST,
TAXES, DEPRECIATION AND AMORTIZATION

   
Six months ended June 30,
2018 2017
 
Earnings from continuing operations $ 77.5 89.9
+ Provision for income taxes 68.9   51.5  
Earnings before income taxes from continuing operations 146.4   141.5  
+ Non-operating pension costs 2.1 13.9
+ Goodwill impairment 15.5
+ Restructuring and other, net 3.9 (2.6 )
+ Operating tax adjustment   2.2  
Comparable earnings before income taxes from continuing operations 167.9   155.0  
+ Interest expense 80.2 69.7
+ Depreciation 681.3 621.0
+ Losses from used vehicle fair value adjustments 27.6 37.2
+ Amortization 3.4   2.9  
Comparable EBITDA $ 960.3   885.9  
 
 

RYDER SYSTEM, INC. AND SUBSIDIARIES

APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS -
UNAUDITED

(In millions, except per share amounts)

 

COMPARABLE EARNINGS/EARNINGS BEFORE
INCOME TAX/TAX RATE RECONCILIATION

   
2018

Consolidated Statements of
Earnings Line Item

Three Months Six Months
 
Earnings from continuing operations before income taxes $ 98.3 146.4
Non-operating pension costs Non-operating pension costs 0.9 2.1
Restructuring and other, net Restructuring and other charges, net 3.6 3.9
Goodwill impairment Restructuring and other charges, net   15.5  
Comparable earnings from continuing operations before income taxes* 102.8   167.9  
 
Provision for income taxes (54.8 ) (68.9 )
Income tax effects of non-GAAP adjustments** (1.1 ) (5.0 )
Tax Reform-related and other tax adjustments 27.9   29.3  
Comparable provision for income taxes** (28.0 ) (44.7 )
 
Earnings from continuing operations 43.5 77.5
Non-operating pension costs Non-operating pension costs 0.3 0.9
Restructuring and other, net Restructuring and other charges, net 3.0 3.3
Tax Reform-related and other tax adjustments SG&A 27.9 29.3
Goodwill impairment Restructuring and other charges, net 15.5
Uncertain tax position adjustment Provision for income taxes   (3.3 )
Comparable earnings from continuing operations* $ 74.8   123.2  
 
Tax rate on continuing operations 55.7 % 47.1 %
Income tax effects of non-GAAP adjustments** (28.5 )% (20.5 )%
Comparable tax rate on continuing operations** 27.2 % 26.6 %
 
* Non-GAAP financial measure.
** 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.
 
Note: Amounts may not be additive due to rounding.
   

RYDER SYSTEM, INC. AND SUBSIDIARIES

APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS -
UNAUDITED

(In millions, except per share amounts)

 
2017

Consolidated Statements of
Earnings Line Item

Three Months   Six Months
 
Earnings from continuing operations before income taxes $ 80.9 141.5
Non-operating pension costs Non-operating pension costs 6.6 13.9
Restructuring and other, net Restructuring and other charges, net (2.6 ) (2.6 )
Operating tax adjustment SG&A   2.2  
Comparable earnings from continuing operations before income taxes* 84.9   155.0  
 
Provision for income taxes (29.5 ) (51.5 )
Income tax effects of non-GAAP adjustments** (2.3 ) (5.9 )
Comparable provision for income taxes** (31.7 ) (57.5 )
 
Earnings from continuing operations 51.4 89.9
Non-operating pension costs Non-operating pension costs 3.8 8.0
Restructuring and other, net Restructuring and other charges, net (2.1 ) (2.1 )
Operating tax adjustment SG&A   1.7  
Comparable earnings from continuing operations* $ 53.1   97.6  
 
Tax rate on continuing operations 36.4 % 36.4 %
Income tax effects of non-GAAP adjustments** 1.0 % 0.7 %
Comparable tax rate on continuing operations** 37.4 % 37.1 %
 
* Non-GAAP financial measure.
** 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.
 
Note: Amounts may not be additive due to rounding.
   

RYDER SYSTEM, INC. AND SUBSIDIARIES

APPENDIX - NON-GAAP FINANCIAL MEASURE RECONCILIATIONS -
UNAUDITED

 

COMPARABLE EARNINGS PER SHARE FORECAST
RECONCILIATION

 
Comparable earnings per share from continuing operations forecast:* Third Quarter 2018 Full Year 2018
EPS from continuing operations $1.53 to $1.63 $4.71 to $4.91
Non-operating pension costs, net of tax 0.01 0.04
UK goodwill impairment charge 0.29
Uncertain tax position adjustment

(0.06

)

Restructuring and other, net 0.01 0.09
Tax Reform-related and other tax adjustments 0.55
Comparable EPS from continuing operations forecast* $1.55 to $1.65 $5.62 to $5.82
 

Note: Amounts may not be additive due to rounding.

 

TOTAL CASH GENERATED/FREE CASH FLOW
FORECAST RECONCILIATION

 
2018 Forecast
Net Cash Provided by Operating Activities from Continuing Operations $ 1,840
Proceeds from sales (primarily revenue earning equipment) (1) 400
Collections of direct finance leases (1) 80  
Total cash generated* 2,320
 
Capital expenditures (1) (3,070 )
Free cash flow ** $ (750 )
 
Memo:
Net cash provided by financing activities $ 935
Net cash used in investing activities $ (2,760 )
 

(1) Included in cash flows from investing activities.

 
* Non-GAAP financial measure.
** Non-GAAP financial measure. We refer to the net amount of cash
generated from operating activities and investing activities
(excluding changes in restricted cash and acquisitions) from
continuing operations as "free cash flow". We calculate free cash
flow as the sum of net cash provided by operating activities and net
cash provided by the sale of revenue earning equipment and operating
property and equipment, collections on direct finance leases and
other cash inflows from investing activities, less purchases of
property and revenue earning equipment.

View Comments and Join the Discussion!