UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 23, 2014
 
RYDER SYSTEM, INC.
(Exact name of registrant as specified in its charter)

	
			
Florida	1-4364	59-0739250	
(State or other jurisdiction
of incorporation)	(Commission
File Number)	(I.R.S. Employer
Identification No.)	

		
11690 NW 105 th  Street
Miami, Florida	33178	
(Address of Principal Executive Offices)	(Zip Code)	

Registrant’s telephone number, including area code: (305) 500-3726

Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

	
		
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	

		
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	

		
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	

		
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 
Item 2.02 Results of Operations and Financial Condition

On April 23, 2014, we issued a press release reporting our financial results for the three months ended March 31, 2014 (the “Press Release”). We also hosted a conference call and webcast on April 23, 2014 during which we made a presentation on our financial results for the three months ended March 31, 2014 (the “Presentation”). The Press Release and the Presentation are available on our website at http://investors.ryder.com.

The Press Release and Presentation include information regarding comparable earnings from continuing operations, comparable earnings per share from continuing operations, comparable earnings before income tax and comparable tax rate, all for the first quarter of 2014 and 2013, and comparable earnings per share from continuing operations forecast for both second quarter and full year 2014, which are non-GAAP financial measures as defined by SEC regulations. We believe that these non-GAAP financial measures provide useful information to investors and allow for better year-over-year comparison of operating performance, as the measures exclude non-operating pension costs from our GAAP earnings from continuing operations, earnings per share from continuing operations, earnings before income tax, tax rate and earnings per share from continuing operations forecast, as it is a non-operational expense that can significantly change from year to year. These non-GAAP financial measures also exclude, as applicable (1) a first quarter 2014 benefit from a tax law change and (2) a first quarter 2013 benefit from foreign currency translation, which are not representative of our ongoing business operations. Additional information regarding non-GAAP financial measures can be found in the Press Release, the Presentation and our reports filed with the SEC. For more information about the components of non-operating pension costs, please refer to the tables following the Press Release under the section entitled "Non-GAAP Financial Measure Reconciliations - Unaudited".

The information in this Report, including Exhibits 99.1 and 99.2, is being furnished pursuant to Item 2.02 of Form 8-K and General Instruction B.2 thereunder and shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as expressly set forth by specific reference to such filing.

Item 9.01(d) Exhibits

The following exhibits are furnished as part of this Report on Form 8-K:

	
		
Exhibit 99.1	Press Release, dated April 23, 2014, relating to Ryder System, Inc.’s financial results for the three months ended March 31, 2014.
	
Exhibit 99.2	Presentation prepared for a conference call and webcast held on April 23, 2014, relating to Ryder System, Inc.’s financial results for the three months ended March 31, 2014.	

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	
			
Date: April 23, 2014	RYDER SYSTEM, INC.
(Registrant)	
 	By:	/s/    ART A. GARCIA        	
 	 	Art A. Garcia, Executive Vice President and Chief Financial Officer	

Exhibit 99.1

News Release

Contacts:      Media:                          Investor Relations:
David Bruce                    Bob Brunn
(305) 500-4999                    (305) 500-4053

Ryder Reports Record First Quarter 2014 Results

•	Q1 Comparable EPS from Continuing Operations Up 14% to a Record $0.92	
		
•	Q1 EPS from Continuing Operations Increased 16% to $0.92	
		
•	Record Q1 Operating Revenue Grew 4%; Record Q1 Total Revenue Up 3%	
		
•	Comparable Full-Year EPS Forecast Increased to $5.40 to $5.55	

MIAMI, April 23, 2014 - Ryder System, Inc. (NYSE: R), a leader in transportation and supply chain management solutions, today reported record first quarter comparable earnings reflecting improved performance in Fleet Management Solutions (FMS). Earnings and earnings per diluted share (EPS) from continuing operations for the three months ended March 31 were as follows:

												
(in millions)	Earnings	 	Diluted EPS	
 	2014	2013	% Change	 	2014	2013	% Change	
GAAP	$ 49.1		40.8		20%	 	 $ 0.92		   0.79		16%	
Non-operating pension costs	1.9		3.1		 	 	   0.03		   0.06		 	
Foreign currency translation benefit	—		(1.9)		 	 	—		 (0.04)		 	
Benefit from tax law change	(1.8)		—		 	 	  (0.03)		—		 	
Comparable	$ 49.2		42.0		17%	 	 $ 0.92		   0.81		14%	

The Company reported record first quarter operating revenue (revenue excluding FMS fuel and all subcontracted transportation), reflecting higher full service lease revenue, growth in commercial rental revenue, and new business and increased volumes in Supply Chain Solutions (SCS). Total and operating revenue for the three months ended March 31, were as follows:

								
(in millions)	Total Revenue	 	Operating Revenue	
 	2014	2013	% Change	 	2014	2013	% Change	
Total	 $ 1,610.7	1,563.0	3%	 	 $ 1,322.5	1,267.5	4%	
Fleet Management Solutions	 $ 1,135.1	1,099.7	3%	 	 $ 859.9	824.0	4%	
Supply Chain Solutions	 $ 597.3	     576.5	4%	 	 $ 520.4	494.8	5%	

Commenting on the Company’s first quarter 2014 performance, Ryder Chairman and CEO Robert Sanchez said, “We outperformed our forecast for the quarter, driven by Fleet Management Solutions, and delivered double-digit growth in comparable earnings per share to reach a record $0.92 per share. Our stronger-than-expected results were driven mainly by commercial rental and used vehicle sales. Supply

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Chain Solutions business segment earnings were impacted by weather-related items. However, for the overall company, the modest impacts of weather were offset by other benefits during the quarter.
“We also delivered record operating revenue that was up 4% for the quarter. Revenue continued to benefit from growth in commercial rental, full service lease, and our supply chain business. In Fleet Management Solutions, we are particularly pleased that we grew our lease fleet for the third consecutive quarter. We continue to see solid contractual sales activity in both business segments.”

First Quarter Business Segment Operating Results

Fleet Management Solutions (FMS)
In the FMS business segment, total revenue in the first quarter of 2014 was $1.14 billion, up 3% compared with the year-earlier period, due to higher operating revenue. Operating revenue (revenue excluding fuel) in the first quarter of 2014 was $859.9 million, up 4% compared with the year-earlier period. Full service lease revenue increased 4% in the first quarter of 2014 due to growth in the fleet size and higher prices on replacement vehicles. The quarter-end lease fleet also expanded sequentially versus the fourth quarter, reflecting increased sales activity. Commercial rental revenue improved 10% reflecting higher pricing and increased demand in North America.
FMS earnings before tax were $77.0 million in the first quarter of 2014, up 27% compared with $60.7 million in the same period of 2013. Increased earnings reflect strong commercial rental performance, improved used vehicle sales results, and better full service lease margins. Maintenance costs benefited from weather-related deferral of vehicle service activities, which are expected to occur in the second quarter. Commercial rental performance improved as a result of higher pricing and increased demand in North America. Rental power fleet utilization was 73.6% for the first quarter of 2014, consistent with the year-earlier period, on a 3% larger average fleet. Used vehicle sales results benefited from strong pricing. Full service lease results benefited from depreciation changes associated with increased residual values and growth in the fleet size. FMS earnings before tax as a percentage of operating revenue were 9.0% in the first quarter of 2014, up 160 basis points from 7.4% in the same quarter a year ago.

Supply Chain Solutions (SCS)
In the SCS business segment, first quarter 2014 total revenue was $597.3 million, up 4%, as higher operating revenue offset lower subcontracted transportation. Operating revenue (revenue excluding subcontracted transportation) was $520.4 million, an increase of 5% from the prior year. SCS operating revenue comparisons benefited from new business and increased volumes in the industrial, consumer

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packaged goods/retail, and high-tech industry groups. These benefits were partially offset by the impact of weather on customer activity levels and foreign exchange.
SCS earnings before tax of $21.8 million decreased 11% in the first quarter of 2014 compared with $24.4 million in 2013, driven by weather-related impacts and, to a lesser extent, start-up costs on a new account. SCS earnings before tax as a percentage of operating revenue were 4.2% in the first quarter of 2014, down 70 basis points from 4.9% in the same quarter a year ago.

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 first quarter of 2014, CSS costs were $58.7 million, up from $54.6 million in the year-earlier period, primarily driven by higher information technology and marketing-related costs.

Income Taxes
The Company’s effective income tax rate from continuing operations for the first quarter of 2014 was 34.5% of earnings before tax compared with 34.7% in the year-earlier period. The first quarter of 2014 included a benefit of $1.8 million (2.4% of pre-tax earnings) related to a favorable tax law change in the state of New York. Without the impact of the tax law change and additional items excluded from comparable earnings, the Company’s first quarter 2014 comparable effective income tax rate was 37.2% of earnings before tax versus 36.2% in the prior year. This increase was primarily due to a higher proportion of earnings in higher tax rate jurisdictions.

Additional Items Excluded from Comparable Earnings
Non-operating components of pension costs are excluded from both comparable earnings and segment earnings before tax in order to more accurately reflect the operating performance of the business. Non-operating pension costs totaled $3.3 million ($1.9 million after tax) or $0.03 per diluted share in the first quarter of 2014, down from $5.2 million ($3.1 million after tax) or $0.06 per diluted share in the year-earlier period. This decrease was primarily due to higher than expected asset returns in 2013.
In the first quarter of the year-earlier period, the Company recognized a pre-tax benefit of $1.9 million ($1.9 million after tax) or $0.04 per diluted share from the recognition of the accumulated foreign currency translation adjustment.

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Capital Expenditures
Capital expenditures from continuing operations were $596 million for the first quarter of 2014, compared with $449 million in the same period of 2013. Net capital expenditures (including proceeds from the sale of assets) from continuing operations were $468 million, compared with $336 million in the same period of 2013. The planned increase in capital expenditures primarily reflects investments in both the commercial rental and full service lease fleets.

Cash Flow
Operating cash flow from continuing operations through March 31, 2014 was $238 million, down from $249 million in the same period of 2013, due to higher working capital needs, partially offset by improved cash-based earnings. Total cash generated (including proceeds from used vehicle sales) from continuing operations through March 31, 2014, was $380 million, compared with $393 million in the same period of 2013. Free cash flow from continuing operations through March 31, 2014 was negative $198 million, compared with negative $27 million for the same period of 2013. The decrease was primarily due to planned higher capital spending.

Leverage
Balance sheet debt as of March 31, 2014 increased by $257 million compared with year-end 2013 resulting from negative free cash flow. The leverage ratio for balance sheet debt as of March 31, 2014 was 234%, compared with 221% at year-end 2013. Total obligations to equity as of March 31, 2014 were 239%, compared with 226% at year-end 2013. Total obligations to equity remain within Ryder’s long-term target range of 225% to 275%.

2014 Earnings Forecast
Commenting on the Company’s outlook, Mr. Sanchez said, “We expect the positive trends we’ve seen in the performance of our commercial rental and used vehicle sales products to continue. Lease sales are up from last year and our full-year forecast for fleet growth remains on track. We are also encouraged by the continued strong acceptance of our new products including on-demand maintenance. We anticipate some increased maintenance costs in the second quarter that were deferred from the first quarter due to weather. In Supply Chain Solutions, we expect positive year-over-year comparisons for the second quarter. Finally, we expect to continue implementing the Company’s previously announced anti-dilutive share repurchase program, under which we began purchase activity in the first quarter.
“Based on our outlook, we are increasing our full-year 2014 comparable earnings forecast to $5.40 to $5.55 per share, up from a previous range of $5.30 to $5.45. We have also established a second quarter

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comparable earnings forecast of $1.35 to $1.40 per share.”

Supplemental Company Information

First Quarter Net Earnings
Net earnings per diluted share (including discontinued operations) for the three-month period ended March 31, 2014 were $0.90 versus $0.77 in the year-earlier period. Earnings per diluted share from discontinued operations (previously announced in 2009) totaled a loss of $0.02 in both the first quarter of 2014 and 2013. Net earnings for the first quarter of 2014 were $48.2 million versus $39.9 million in the year-earlier period.

Business Description
Ryder System, Inc. is a FORTUNE 500 ® commercial transportation, logistics and supply chain solutions company. Ryder’s stock (NYSE: R) is a component of the Dow Jones Transportation Average and the Standard & Poor’s 500 Index. The Company’s financial performance is reported in the following two, inter-related business segments:
		
•	Fleet Management Solutions - Ryder’s FMS business segment provides one-stop outsourcing of a range of solutions for commercial truck fleet operators, including vehicle maintenance, leasing and rental, used vehicle sales, as well as services such as roadside assistance, fueling, safety and financing options.	
		
•	Supply Chain Solutions - Ryder’s SCS business segment offers a broad range of innovative solutions designed to optimize day-to-day logistics operations and synchronize the supply of parts and finished goods with customer demand. Solutions are strategically engineered to address customer requirements, and include lead logistics management, dedicated services, warehousing, transportation management, packaging, and other value-added services.	

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 full service lease 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 full service lease product line varies directly with customer contract signings for replacement vehicles and growth. These contracts are long-term agreements that result

5

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 the Company’s fleet available for shorter-term use by contractual or occasional customers.

For more information on Ryder System, Inc., visit 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, including our expectations regarding revenue and earnings growth, lease fleet growth, performance in our product lines, including full service lease, supply chain solutions and commercial rental, used vehicle pricing. 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, lower than expected lease sales, decreases in commercial rental demand and pricing, fluctuations in market demand for used vehicles impacting inventory levels, pricing and our anticipated proportion of retail versus wholesale sales, lower than expected benefits from maintenance initiatives and a newer fleet, setbacks in the economic recovery, decreases in freight demand or volumes, our ability to obtain adequate profit margins for our services, our inability to maintain current pricing levels due to soft economic conditions, further decline in economic and market conditions in the U.K., business interruptions or expenditures due to severe weather or natural occurrences, competition from other service providers, customer retention levels, loss of key customers, 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, 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 from continuing operations, comparable earnings forecast, operating revenue, total cash generated, free cash flow, total obligations, and the ratios based on these financial measures, as well as the other financial measures identified in the tables following this release.  Additional information as required by Regulation G regarding non-GAAP financial measures can be found in the tables following this release, our investor presentation for the quarter, our most recent Form 10-K, Form 10-Q and our Form 8-K filed as of the date of this news release with the SEC, which are available in the Investors area of our website at http ://investors.ryder.com .
 
Conference Call and Webcast Information:
Ryder’s earnings conference call and webcast is scheduled for Wednesday, April 23, 2014, 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 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 www.mymeetings.com/nc/join/ using the Conference Number: RG4797023 and Passcode: RYDER .	
		
•	To access audio replays of the conference and view a presentation of Ryder’s earnings results: Dial 1-800-841-8615 ( outside U.S. dial 1-203-369-3833 ), then view the presentation by visiting the Investors area of Ryder’s website at http://investors.ryder.com . A podcast of the call will also be available online within 24 hours after the end of the call at http://investors.ryder.com .	
28-14

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RYDER SYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS - UNAUDITED
Periods ended March 31, 2014 and 2013
(In millions, except per share amounts)

							
 	Three Months	
 	2014	 	2013	
 	 	 	 	
Lease and rental revenues	$	689.7		 	659.7		
Services revenue	709.7		 	689.5		
Fuel services revenue	211.4		 	213.8		
Total revenues	1,610.7		 	1,563.0		
 	 	 	 	
Cost of lease and rental	493.0		 	473.1		
Cost of services	606.2		 	583.6		
Cost of fuel services	207.2		 	210.3		
Other operating expenses	36.6		 	37.6		
Selling, general and administrative expenses	191.7		 	189.1		
Gains on vehicle sales, net	(28.8	)	 	(23.0	)	
Interest expense	35.1		 	34.5		
Miscellaneous income, net	(5.4	)	 	(4.6	)	
 	1,535.7		 	1,500.5		
 	 	 	 	
Earnings from continuing operations before income taxes	75.0		 	62.5		
Provision for income taxes	25.9		 	21.7		
Earnings from continuing operations	49.1		 	40.8		
Loss from discontinued operations, net of tax	(0.9	)	 	(0.9	)	
Net earnings	$	48.2		 	39.9		
 	 	 	 	
Earnings (loss) per common share - Diluted	 	 	 	
Continuing operations	$	0.92		 	0.79		
Discontinued operations	(0.02	)	 	(0.02	)	
Net earnings	$	0.90		 	0.77		
 	 	 	 	
Earnings per share information - Diluted	 	 	 	
Earnings from continuing operations	$	49.1		 	40.8		
Less: Distributed and undistributed earnings allocated to nonvested stock	(0.3	)	 	(0.4	)	
Earnings from continuing operations available to common stockholders	$	48.8		 	40.4		
 	 	 	 	
Weighted-average shares outstanding - Diluted	53.1		 	51.4		
 	 	 	 	
Memo:	 	 	 	
Depreciation expense	$	248.8		 	231.5		
Subcontracted transportation	$	76.9		 	81.6		
 	 	 	 	
Comparable earnings per share from continuing operations: *	 	 	 	
EPS from continuing operations	$	0.92		 	0.79		
Non-operating pension costs	0.03		 	0.06		
Foreign currency translation benefit	—		 	(0.04	)	
Benefit from tax law change
	(0.03	)	 	—		
Comparable EPS from continuing operations *	$	0.92		 	0.81		

* Non-GAAP financial measure.
Note: Amounts may not be additive due to rounding.

1

RYDER SYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS - UNAUDITED
(Dollars in millions)

	
							
 	March 31, 2014	 	December 31, 2013	
 	 	 	 	
Assets:	 	 	 	
Cash and cash equivalents	$	72.8		 	61.6		
Other current assets	1,044.3		 	1,000.9		
Revenue earning equipment, net	6,688.0		 	6,490.8		
Operating property and equipment, net	636.6		 	633.8		
Other assets	925.8		 	916.6		
 	$	9,367.5		 	9,103.8		
 	 	 	 	
Liabilities and shareholders' equity:	 	 	 	
Short-term debt and current portion of long-term debt	$	400.8		 	259.4		
Other current liabilities	971.8		 	971.7		
Long-term debt	4,045.8		 	3,930.0		
Other non-current liabilities (including deferred income taxes)	2,050.6		 	2,045.9		
Shareholders' equity	1,898.5		 	1,896.7		
 	$	9,367.5		 	9,103.8		

SELECTED KEY RATIOS AND METRICS

	
						
 	March 31, 2014	 	December 31, 2013	
 	 	 	 	
Debt to equity	234	%	 	221	%	
Total obligations to equity *	239	%	 	226	%	
Effective interest rate (average cost of debt)	3.3	%	 	3.5	%	

	
							
 	Three months ended March 31,	
 	2014	 	2013	
 	 	 	 	
Cash provided by operating activities from continuing operations	$	237.7		 	248.9		
Free cash flow *	(198.5	)	 	(26.6	)	
Capital expenditures paid	578.7		 	420.1		
 	 	 	 	
Capital expenditures (accrual basis)	$	595.6		 	449.4		
Less: Proceeds from sales (primarily revenue earning equipment)	(127.7	)	 	(113.3	)	
Net capital expenditures	$	468.0		 	336.1		

	
						
 	Three months ended March 31,	
 	2014	 	2013	
 	 	 	 	
Return on average shareholders' equity	14.5	%	 	15.0	%	
Return on average assets	2.8	%	 	2.6	%	
Adjusted return on capital *	5.7	%	 	5.6	%	
Weighted average cost of capital	4.8	%	 	4.7	%	

* Non-GAAP financial measure; see reconciliation to closest GAAP financial measure included within this release.
Note: Amounts may not be additive due to rounding.

2

RYDER SYSTEM, INC. AND SUBSIDIARIES
BUSINESS SEGMENT REVENUE AND EARNINGS - UNAUDITED
Periods ended March 31, 2014 and 2013
(Dollars in millions)

	
										
 	Three Months	
 	2014	 	2013	 	B(W)	
 	 	 	 	 	 	
Revenue:	 	 	 	 	 	
Fleet Management Solutions:	 	 	 	 	 	
Full service lease	$	552.2		 	533.2		 	4	 %	
Contract maintenance	43.7		 	46.1		 	(5	)%	
Contractual revenue	595.9		 	579.3		 	3	 %	
Commercial rental	190.2		 	173.1		 	10	 %	
Contract-related maintenance	56.1		 	53.3		 	5	 %	
Other	17.7		 	18.2		 	(3	)%	
Fuel services revenue	275.2		 	275.7		 	—	 %	
Total Fleet Management Solutions	1,135.1		 	1,099.7		 	3	 %	
Supply Chain Solutions	597.3		 	576.5		 	4	 %	
Eliminations	(121.7	)	 	(113.2	)	 	(8	)%	
Total revenue	$	1,610.7		 	1,563.0		 	3	 %	

Operating Revenue: *	 	 	 	 	 	
Fleet Management Solutions	$	859.9		 	824.0		 	4	 %	
Supply Chain Solutions	520.4		 	494.8		 	5	 %	
Eliminations	(57.9	)	 	(51.3	)	 	(13	)%	
Total operating revenue	$	1,322.5		 	1,267.5		 	4	 %	

Business segment earnings:	 	 	 	 	 	
Earnings from continuing operations	 	 	 	 	 	
 before income taxes:	 	 	 	 	 	
Fleet Management Solutions	$	77.0		 	60.7		 	27	 %	
Supply Chain Solutions	21.8		 	24.4		 	(11	)%	
Eliminations	(9.6	)	 	(8.0	)	 	(21	)%	
 	89.1		 	77.2		 	15	 %	
Unallocated Central Support Services	(10.8	)	 	(11.4	)	 	5	 %	
Non-operating pension costs	(3.3	)	 	(5.2	)	 	37	 %	
Restructuring and other charges, net and other items	—		 	1.9		 	NM		
Earnings from continuing operations before income taxes	75.0		 	62.5		 	20	 %	
Provision for income taxes	25.9		 	21.7		 	(19	)%	
Earnings from continuing operations	$	49.1		 	40.8		 	20	 %	

* Non-GAAP financial measure; see reconciliation to closest GAAP financial measure included within this release.
Note: Amounts may not be additive due to rounding.

3

RYDER SYSTEM, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION - UNAUDITED
Periods ended March 31, 2014 and 2013
(Dollars in millions)

	
										
 	Three Months	
 	2014	 	2013	 	B(W)	
 	 	 	 	 	 	
Fleet Management Solutions	 	 	 	 	 	
 	 	 	 	 	 	
Total revenue	$	1,135.1		 	1,099.7		 	3	 %	
Fuel services revenue	(275.2	)	 	(275.7	)	 	—	 %	
Operating revenue *	$	859.9		 	824.0		 	4	 %	
 	 	 	 	 	 	
Segment earnings before income taxes	$	77.0		 	60.7		 	27	 %	
 	 	 	 	 	 	
Earnings before income taxes as % of total revenue	6.8	%	 	5.5	%	 	 	
 	 	 	 	 	 	
Earnings before income taxes as % of operating revenue *	9.0	%	 	7.4	%	 	 	

Supply Chain Solutions	 	 	 	 	 	
 	 	 	 	 	 	
Total revenue	$	597.3		 	576.5		 	4	 %	
Subcontracted transportation	(76.9	)	 	(81.6	)	 	(6	)%	
Operating revenue *	$	520.4		 	494.8		 	5	 %	
 	 	 	 	 	 	
Segment earnings before income taxes	$	21.8		 	24.4		 	(11	)%	
 	 	 	 	 	 	
Earnings before income taxes as % of total revenue	3.6	%	 	4.2	%	 	 	
 	 	 	 	 	 	
Earnings before income taxes as % of operating revenue *	4.2	%	 	4.9	%	 	 	

Memo:	 	 	 	 	 	
Dedicated services operating revenue *	$	311.7		 	291.1		 	7	 %	
Dedicated services subcontracted transportation	34.1		 	33.6		 	2	 %	
Dedicated services total revenue	345.9		 	324.8		 	6	 %	
 	 	 	 	 	 	
Fuel costs	$	70.4		 	68.2		 	(3	)%	

* Non-GAAP financial measure.
Note: Amounts may not be additive due to rounding.

4

RYDER SYSTEM, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION - UNAUDITED
KEY PERFORMANCE INDICATORS

	

 	Three months ended March 31,	Change 2014/2013	
 	2014	 	2013	Three Months	
 	 	 	 	 	
Full service lease	 	 	 	 	
Average fleet count	123,100		 	121,900		1%	
End of period fleet count	123,300		 	121,700		1%	
Miles/unit per day change - %  (a)	0.2	%	 	4.2	 %	 	

Commercial rental	 	 	 	 	
Average fleet count	38,200		 	37,100		3%	
End of period fleet count	38,600		 	36,500		6%	
Rental utilization - power units	73.6	%	 	73.8	 %	(20) bps	
Rental rate change - %  (b)	4.6	%	 	2.2	 %	 	

Customer vehicles under	 	 	 	
contract maintenance	 	 	 	 	
Average fleet count	37,400		 	37,700		(1)%	
End of period fleet count	37,300		 	38,100		(2)%	

Customer vehicles under	 	 	 	
transactional maintenance (c)	 	 	 	 	
End of period fleet count	7,100		 	3,300		115%	

SCS	 	 	 	 	
Average fleet count  (d)	12,500		 	11,700		7%	

Used vehicle sales (UVS)	 	 	 	 	
Average UVS inventory	7,700		 	9,700		(21)%	
End of period fleet count	7,200		 	10,000		(28)%	
Used vehicles sold	5,600		 	5,800		(3)%	
UVS pricing change - % (e)	 	 	 	 	
Tractors	2	%	 	(10	)%	 	
Trucks	12	%	 	6	 %	 	

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 transactional 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 full service lease and commercial rental.	
(e)	Represents percentage change compared to prior year period in average sales proceeds on used vehicle sales using constant currency.	

5

RYDER SYSTEM, INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED
(Dollars in millions)

	
							
OPERATING REVENUE RECONCILIATION	Three months ended March 31,	
 	2014	 	2013	
 	 	 	 	
Total revenue	$	1,610.7		 	1,563.0		
Fuel services and subcontracted transportation revenue	(352.1	)	 	(357.4	)	
Fuel eliminations	63.8		 	61.9		
Operating revenue *	$	1,322.5		 	1,267.5		

	
												
DEBT TO EQUITY RECONCILIATION	March 31, 2014	 	% to Equity	 	December 31, 2013	 	% to Equity	
 	 	 	 	 	 	 	 	
On-balance sheet debt	$	4,446.6		 	234%	 	$	4,189.4		 	221%	
Off-balance sheet debt - PV of minimum lease payments and guaranteed residual values under operating leases for vehicles (a)	95.1		 	 	 	94.5		 	 	
Total obligations *	$	4,541.7		 	239%	 	$	4,283.9		 	226%	

	
							
CASH FLOW RECONCILIATION	Three months ended March 31,	
 	2014	 	2013	
 	 	 	 	
Net cash provided by operating activities from continuing operations	$	237.7		 	248.9		
Proceeds from sales (primarily revenue earning equipment)	127.7		 	113.3		
Collections on direct finance leases	16.2		 	27.4		
Insurance recoveries and others	(1.3	)	 	3.8		
Total cash generated *	380.3		 	393.4		
Capital expenditures	(578.7	)	 	(420.1	)	
Free cash flow *	$	(198.5	)	 	(26.6	)	

	
							
RETURN ON CAPITAL RECONCILIATION	Three months ended March 31,	
 	2014	 	2013	
 	 	 	 	
Net earnings (12-month rolling period)	$	246.1		 	215.6		
+ Restructuring and other items	1.8		 	13.9		
+ Income taxes	129.8		 	99.8		
Adjusted earnings before income taxes	377.6		 	329.3		
+ Adjusted interest expense  (b)	140.4		 	143.4		
- Adjusted income taxes	(182.8	)	 	(170.3	)	
= Adjusted net earnings for ROC (numerator)	$	335.2		 	302.3		
 	 	 	 	
Average total debt	$	4,071.7		 	3,793.5		
Average off-balance sheet debt	118.5		 	146.7		
Average shareholders' equity	1,698.5		 	1,140.3		
Adjustment to equity (c)	(1.6	)	 	(4.4	)	
Adjusted average total capital (denominator)	$	5,887.2		 	5,376.0		
 	 	 	 	
Adjusted ROC *	5.7	%	 	5.6	%	

Notes:
(a) Discounted at the incremental borrowing rate at lease inception.
(b) Interest expense includes implied interest on off-balance sheet vehicle obligations.
(c) Represents comparable earnings items for those periods.

* Non-GAAP financial measure.
Note: Amounts may not be additive due to rounding.

6

RYDER SYSTEM, INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS - UNAUDITED
(In millions, except per share amounts)

											
 	Three Months	
 	2014	
 	Reported	 	 	 	Comparable	
 	Earnings	 	Adjustment	 	Earnings *	
 	 	 	 	 	 	
Revenue	$	1,610.7		 		 	$	1,610.7		
 	 	 	 	 	 	
Cost of lease and rental	493.0		 	—		 	493.0		
Cost of services	606.2		 	—		 	606.2		
Cost of fuel services	207.2		 	—		 	207.2		
Other operating expenses	36.6		 	—		 	36.6		
Selling, general and administrative expenses (a)	191.7		 	(3.3	)	 	188.4		
Gains on vehicle sales, net	(28.8	)	 	—		 	(28.8	)	
Interest expense	35.1		 	—		 	35.1		
Miscellaneous income, net	(5.4	)	 	—		 	(5.4	)	
 	1,535.7		 	(3.3	)	 	1,532.4		
Earnings from continuing operations before income taxes	75.0		 	3.3		 	78.3		
Provision for income taxes  (b) (d)	(25.9	)	 	(3.2	)	 	(29.1	)	
Earnings from continuing operations	49.1		 	0.1		 	49.2		
 	 	 	 	 	 	
Tax rate on continuing operations	34.5	%	 	 	 	37.2	%	
 	 	 	 	 	 	
Earnings per common share - Diluted:	 	 	 	 	 	
  Continuing operations	$	0.92		 	—		 	$	0.92		

	
											
 	Three Months	
 	2013	
 	Reported	 	 	 	Comparable	
 	Earnings	 	Adjustment	 	Earnings *	
 	 	 	 	 	 	
Revenue	$	1,563.0		 		 	$	1,563.0		
 	 	 	 	 	 	
Cost of lease and rental	473.1		 	—		 	473.1		
Cost of services	583.6		 	—		 	583.6		
Cost of fuel services	210.3		 	—		 	210.3		
Other operating expenses	37.6		 	—		 	37.6		
Selling, general and administrative expenses  (a)	189.1		 	(5.2	)	 	183.9		
Gains on vehicle sales, net	(23.0	)	 	—		 	(23.0	)	
Interest expense	34.5		 	—		 	34.5		
Miscellaneous income, net (c)	(4.6	)	 	1.9		 	(2.7	)	
 	1,500.5		 	(3.3	)	 	1,497.2		
Earnings from continuing operations before income taxes	62.5		 	3.3		 	65.8		
Provision for income taxes (d)	(21.7	)	 	(2.2	)	 	(23.9	)	
Earnings from continuing operations	40.8		 	1.2		 	42.0		
 	 	 	 	 	 	
Tax rate on continuing operations	34.7	%	 	 	 	36.2	%	
 	 	 	 	 	 	
Earnings per common share - Diluted:	 	 	 	 	 	
  Continuing operations	$	0.79		 	0.02		 	$	0.81		

Notes regarding adjustments:

		
(a)	Includes the amortization of actuarial loss, interest cost and expected return on plan assets components of pension and post-retirement costs, which are tied
to financial market performance. We consider these costs to be outside the operational performance of the business.	
(b)	Tax benefit related to a tax law change in New York.	
(c)	Foreign currency translation benefit.	
(d)	Tax impact of non-operating pension costs.	

* Non-GAAP financial measure.
Note: Amounts may not be additive due to rounding.

7

Proprietary and Confidential | April 23, 2014 First Quarter 2014 Earnings Conference Call Exhibit 99.2 1

 

Proprietary and Confidential | 2 Certain statements and information included in this presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995, including our expectations regarding revenue and earnings growth, lease fleet growth, performance in our product lines, including full service lease, supply chain solutions, commercial rental and used vehicle pricing. 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, lower than expected lease sales, decreases in commercial rental demand and pricing, fluctuations in market demand for used vehicles impacting inventory levels, pricing and our anticipated proportion of retail versus wholesale sales, lower than expected benefits from maintenance initiatives and a newer fleet, setbacks in the economic recovery, decreases in freight demand or volumes, our ability to obtain adequate profit margins for our services, our inability to maintain current pricing levels due to soft economic conditions, further decline in economic and market conditions in the U.K., business interruptions or expenditures due to severe weather or natural occurrences, competition from other service providers, customer retention levels, loss of key customers, 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, 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. This presentation includes certain non-GAAP financial measures as defined under SEC rules, including operating revenue, comparable earnings, comparable earnings forecast, comparable earnings before income tax, comparable tax rate, adjusted return on capital, total cash generated, free cash flow, total obligations and the ratios based on these financial measures. Refer to Appendix – Non-GAAP Financial Measures for more information about the non-GAAP financial measures contained in this presentation. Additional information as required by Regulation G regarding non-GAAP financial measures 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 presentation with the SEC, which are available at http://investors.ryder.com. Safe Harbor and Non-GAAP Financial Measures

 

Proprietary and Confidential | 3 Contents ►First Quarter 2014 Results Overview ►Asset Management Update ►Earnings Forecast ►Q & A

 

Proprietary and Confidential | 4 1st Quarter Results Overview ► Comparable earnings per share from continuing operations were $0.92 vs. $0.81 in 1Q13 ► Earnings per diluted share from continuing operations were $0.92 in 1Q14 vs. $0.79 in 1Q13 – 1Q14 included non-operating pension costs of $0.03, which were offset by a $0.03 benefit related to a state tax law change – 1Q13 included net expense of $0.02 from non-operating pension costs, partially offset by a foreign currency translation ► Operating revenue increased 4% and total revenue increased 3% vs. prior year reflecting higher revenue in both segments

 

Proprietary and Confidential | 5 Key Financial Statistics First Quarter ($ Millions, Except Per Share Amounts) Operating Revenue Fuel Services and Subcontracted Transportation Revenue Total Revenue Earnings Per Share from Continuing Operations Comparable Earnings Per Share from Continuing Operations 2014 2013 % B/(W) 1,322.5$ 1,267.5$ 4% 288.3 295.5 (2)% 1,610.7$ 1,563.0$ 3% 0.92$ 0.79$ 16% 0.92$ 0.81$ 14% Memo: Average Shares (Millions) - Diluted Tax Rate from Continuing Operations Comparable Tax Rate from Continuing Operations Adjusted Return on Capital vs. Cost of Capital (Trailing 12 months) 53.1 51.4 34.5% 34.7% 37.2% 36.2% 0.9% 0.9% Note: Amounts throughout presentation may not be additive due to rounding.

 

Proprietary and Confidential | 6 1st Quarter Results Overview – FMS ► Fleet Management Solutions (FMS) operating revenue up 4% and total revenue up 3% vs. prior year – Full service lease revenue up 4% – Contract maintenance revenue down 5% – Contract-related maintenance revenue up 5% – Commercial rental revenue up 10% ► FMS earnings increased due to strong commercial rental performance, better used vehicle sales results and improved full service lease results – Favorable lease results benefited from vehicle residual value benefits and fleet growth ► FMS earnings before tax (EBT) up 27% – FMS EBT percent of operating revenue up 160 basis points to 9.0%

 

Proprietary and Confidential | 7 1st Quarter Results Overview – SCS ► Supply Chain Solutions (SCS) operating revenue up 5% and total revenue up 4% vs. prior year due to new business and higher volumes – Dedicated operating revenue increased 7% vs. prior year due to new sales ► SCS earnings were lower reflecting weather-related impacts and, to a lesser extent, start-up costs related to a new account ► SCS earnings before tax (EBT) down 11% – SCS EBT percent of operating revenue down 70 basis points to 4.2%

 

Proprietary and Confidential | 8 Business Segments 2014 2013 Operating Revenue: Fleet Management Solutions 860.0$ 824.0$ Supply Chain Solutions 520.4 494.8 Eliminations (57.9) (51.3) Total 1,322.5$ 1,267.5$ Segment Earnings Before Tax: (1) Fleet Management Solutions 77.0$ 60.7$ Supply Chain Solutions 21.8 24.4 Eliminations (9.6) (8.0) 89.1 77.2 Central Support Services (Unallocated Share) (10.8) (11.4) Non-operating Pension Costs (3.3) (5.2) Restructuring and Other Charges, Net and Other Items - 1.9 Earnings Before Income Taxes 75.0 62.5 Provision for Income Taxes (25.9) (21.7) Earnings from Continuing Operations 49.1$ 40.8$ Comparable Earnings from Continuing Operations 49.2$ 42.0$ % B/(W) 2014 2013 4% 1,135.1$ 1,099.7$ 5% 597.3 576.5 (13)% (121.7) (113.2) 4% 1,610.7$ 1,563.0$ 27% (11)% (21)% 15% 5% 37% NM 20% (19)% 20% 17% Memo: Total Revenue % B/(W) 3% 4% (8)% 3% First Quarter (1) Our primary measure of segment financial performance excludes unallocated CSS, non-operating pension costs, restructuring and other charges, net and other items. ($ Millions)

 

Proprietary and Confidential | Capital Expenditures Full Service Lease Commercial Rental Operating Property and Equipment Gross Capital Expenditures 2014 $ 2014 2013 O/(U) 2013 446$ 381$ 65$ 125 47 79 24 22 2 596 449 146 Less: Proceeds from Sales (Primarily Revenue Earning Equipment) 128 113 14 Net Capital Expenditures 468$ 336$ 132$ First Quarter ($ Millions) 9

 

Proprietary and Confidential | Cash Flow from Continuing Operations 2014 2013 Earnings from Continuing Operations 49$ 41$ Depreciation 249 232 Gains on Vehicle Sales, Net (29) (23) Amortization and Other Non-Cash Charges, Net 19 18 Pension Contributions (4) (4) Changes in Working Capital and Deferred Taxes (46) (14) Cash Provided by Operating Activities 238 249 Proceeds from Sales (Primarily Revenue Earning Equipment) 128 113 Collections of Direct Finance Leases 16 27 Other, Net (1) 4 Total Cash Generated 380 393 Capital Expenditures (1) (579) (420) Free Cash Flow (2) (198)$ (27)$ First Quarter ($ Millions) (1) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment. (2) Free Cash Flow excludes acquisitions and changes in restricted cash. 10

 

Proprietary and Confidential | Debt to Equity Ratio 3/31/2014 12/31/2013 3/31/2013 Balance Sheet Debt 4,447$ 4,189$ 3,846$ Percent To Equity 234% 221% 258% Total Obligations 4,542$ 4,284$ 3,990$ Percent To Equity 239% 226% 268% Total Equity (3) 1,899$ 1,897$ 1,491$ Balance 213% 175% 196% 257% 260% 221% 234% Sheet Debt to Equity (1) (2) (1) Illustrates impact of accumulated net pension related equity charge on leverage. (2) Represents long term total obligations to equity target of 225 - 275% while maintaining a solid investment grade rating. (3) Total Equity includes impact of accumulated net pension related equity charge of $471 million as of 3/31/14, $474 million as of 12/31/2013 and $640 million as of 3/31/13. 11 ($ Millions)

 

Proprietary and Confidential | Contents ►First Quarter 2014 Results Overview ►Asset Management Update ►Earnings Forecast ►Q & A 12

 

Proprietary and Confidential | ► Units held for sale were 7,200 at quarter end, down from 10,000 units held for sale in the prior year ─ Sequentially from the fourth quarter, units held for sale decreased by 700 units ► The number of used vehicles sold in the first quarter was 5,600, down 3% from the prior year ─ Sequentially from the fourth quarter, units sold were down 2% ► Proceeds per unit were up 2% for tractors and up 12% for trucks in the first quarter compared with prior year (excluding the impact of exchange rates) ─ Proceeds per unit were up 4% for tractors and up 16% for trucks vs. the fourth quarter ► Average first quarter total commercial rental fleet was up 3% from the prior year ─ Average commercial rental fleet remained unchanged from the fourth quarter Global Asset Management Update (1) (1) Units rounded to nearest hundred. 13

 

Proprietary and Confidential | Contents ►First Quarter 2014 Results Overview ►Asset Management Update ►Earnings Forecast ►Q & A 14

 

Proprietary and Confidential | EPS Forecast – Continuing Operations Second Quarter Full Year 2014 Comparable EPS Forecast(1) $ 1.35 - 1.40 $ 5.40 - 5.55 2013 Comparable EPS (2) $ 1.25 $ 4.88 ($ Earnings Per Share) (1) 2014 Comparable EPS Forecast, a non-GAAP financial measure, excludes from EPS forecast $0.04 and $0.14 of non-operating pension costs for the second quarter and full year periods, respectively. (2) 2013 Comparable EPS for the second quarter excluded net expense of $0.06 from non-operating pension costs. 2013 Comparable EPS for the full year excludes $0.28 of non-operating pension costs, and $0.03 of pension settlement charge partially offset by a foreign currency translation benefit of $0.04, SuperStorm Sandy vehicle-related recoveries of $0.01, and restructuring and other recoveries, net of $0.01. 15 ► Increasing full year Comparable EPS forecast by $0.10 from $5.30 - $5.45 to $5.40 - $5.55 ► Current forecast is as follows:

 

Proprietary and Confidential | Q&A 16

 

Proprietary and Confidential | Appendix Full Service Lease Vehicle Count Business Segment Detail Central Support Services Balance Sheet Financial Indicators Forecast Asset Management Non-GAAP Financial Measures & Reconciliations 17

 

Proprietary and Confidential | End of Period 1Q13 2Q13 3Q13 4Q13 1Q14 FSL Fleet (as reported) 121,700 120,300 120,800 122,900 123,300 1,600 UK FSL Trailers 6,000 5,400 5,100 5,000 4,800 (1,200) FSL Fleet - excluding UK 115,700 114,900 115,700 117,900 118,500 2,800 Sequential Change 2Q13 O/(U) 1Q13 3Q13 O/(U) 2Q13 4Q13 O/(U) 3Q13 1Q14 O/(U) 4Q13 FSL Fleet (as reported) (1,400) 500 2,100 400 UK FSL Trailers (600) (300) (100) (200) FSL Fleet - excluding UK (800) 800 2,200 600 1Q14 O/(U) 1Q13 18 Note: Represents end of period vehicle count. Full Service Lease (FSL) Fleet Count

 

Proprietary and Confidential | Fleet Management Solutions (FMS) Full Service Lease Contract Maintenance Contractual Revenue Commercial Rental Contract-related Maintenance Other Operating Revenue Fuel Services Revenue Total Revenue Segment Earnings Before Tax (EBT) Segment EBT as % of Total Revenue Segment EBT as % of Operating Revenue 2014 2013 % B/(W) 552.2$ 533.2$ 4% 43.7 46.1 (5)% 595.9 579.3 3% 190.2 173.1 10% 56.1 53.3 5% 17.7 18.2 (3)% 860.0 824.0 4% 275.2 275.7 - 1,135.1$ 1,099.7$ 3% 77.0$ 60.7$ 27% 6.8% 5.5% 9.0% 7.4% First Quarter ($ Millions) 19

 

Proprietary and Confidential | Supply Chain Solutions (SCS) 2014 2013 % B/(W) Automotive 144.6$ 148.6$ (3)% High-Tech 81.5 77.8 5% Retail & CPG 183.3 175.8 4% Industrial & Other 111.1 92.6 20% Operating Revenue 520.4 494.8 5% Subcontracted Transportation 76.9 81.6 (6)% Total Revenue 597.3$ 576.5$ 4% Segment Earnings Before Tax (EBT) 21.8$ 24.4$ (11)% Segment EBT as % of Total Revenue 3.6% 4.2% Segment EBT as % of Operating Revenue 4.2% 4.9% Memo: Dedicated Services - Operating Revenue(1) 311.7$ 291.1$ 7%324.8 Dedicated Services - Total Revenue 345.9$ 324.8$ 6% Fuel Costs 70.4$ 68.2$ 3% First Quarter ($ Millions) (1) Excludes $34.1 million and $33.6 million of Dedicated Services Subcontracted Transportation in 2014 and 2013, respectively. 20

 

Proprietary and Confidential | Central Support Services (CSS) 2014 2013 % B/(W) Allocated CSS Costs (1) 47.9$ 43.2$ (11)% Unallocated CSS Costs 10.8 11.4 5% Total CSS Costs (1) 58.7$ 54.6$ (8) First Quarter ($ Millions) 21 (1) Includes the reclassification of $2.4 million in 2013 to CSS in order to conform to the current year presentation.

 

Proprietary and Confidential | Balance Sheet Cash and Cash Equivalents Other Current Assets Revenue Earning Equipment, Net Operating Property and Equipment, Net Other Assets Total Assets Short-Term Debt / Current Portion Long-Term Debt Other Current Liabilities Long-Term Debt Other Non-Current Liabilities (including Deferred Income Taxes) Shareholders' Equity Total Liabilities and Shareholders' Equity March 31, December 31, 2014 2013 73$ 62$ 1,044 1,001 6,688 6,491 637 634 926 916 9,367$ 9,104$ 401$ 259$ 972 972 4,046 3,930 2,051 2,046 1,899 1,897 9,367$ 9,104$ ($ Millions) 22

 

Proprietary and Confidential | 2008 2009 2010 2011 2012 2013 2013 Forecast Midpoint Long Term Target Midpoint Financial Indicators Forecast (1) (1) Total Obligations to Equity includes acquisitions. Free Cash Flow and Gross Capital Expenditures exclude acquisitions. (2) Illustrates impact of accumulated net pension related equity charge on leverage. (3) Represents long term obligations to equity target of 225-275% while maintaining a solid investment grade credit rating. 2008 2009 2010 2011 2012 2013 2014 Forecast Gross Capital Expenditures Free Cash Flow $1,265 $611 341 614 $1,088 (384) 258 $1,760 Full Service Lease PP&E/Other Commercial Rental $2,161 (257) Total Obligations to Equity Pension Impact (2) 2008 2009 2010 225% 183% 203% 270% Long Term Target Midpoint (3) 2011 261% Forecast 2012 230% 2014 Total Obligations to Equity 226% $2,184 Balance Sheet Debt to Equity 213% 175% 196% 257% 260% 221% (386) $2,160 (300) 2013 250% 23 Forecast 2014 2008 2009 2010 2011 2012 2013 ($ Millions)

 

Proprietary and Confidential | 1,061 1,210 1,269 896 1,521 1,684 1,485 2,088 1,334 1,147 1,701 889 742 1,855 572 1,001 1,512 787 727 1,384 649 0 500 1,000 1,500 2,000 2,500 Redeployments Extensions Early Terminations N u m b e r o f U n i t s 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 (a) U.S. only (b) Current year statistics may exclude some units due to a lag in reporting (b) Excludes early terminations where customer purchases vehicle (b)(c) Redeployments – Vehicles coming off-lease or in Rental with useful life remaining are redeployed in the Ryder fleet (SCS, or with another Lease customer). Redeployments exclude units transferred into the Rental product line. Extensions – Ryder re-prices lease contract and extends maturity date. Early terminations – Customer elects to terminate lease prior to maturity. Depending on the remaining useful life, the vehicle may be redeployed in the Ryder fleet (Commercial Rental, SCS, other Lease customer) or sold by Ryder. Asset Management Update (a) 24

 

Proprietary and Confidential | Non-GAAP Financial Measures ► This presentation includes “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 & Additional Information Presented on Slide Titled Page Operating Revenue Total Revenue Key Financial Statistics 5 Comparable Earnings / Comparable EPS Earnings / EPS from Continuing Operations Earnings and Tax Rate from Continuing Operations Reconciliation 26 Comparable Earnings Before Income Tax / Comparable Tax Rate Earnings Before Income Tax / Tax Rate Earnings and Tax Rate from Continuing Operations Reconciliation 26 Comparable EPS Forecast EPS Forecast EPS Forecast – Continuing Operations 15 Adjusted Return on Capital Net Earnings / Total Capital Adjusted Return on Capital Reconciliation 27 Total Cash Generated / Free Cash Flow Cash Provided by Operating Activities Cash Flow Reconciliation 29 Total Obligations / Total Obligations to Equity Balance Sheet Debt / Debt to Equity Debt to Equity Reconciliation 28 FMS Operating Revenue / SCS and Dedicated Services Operating Revenue FMS Total Revenue / SCS and Dedicated Services Total Revenue Fleet Management Solutions (FMS) / Supply Chain Solutions (SCS) 19-20 25

 

Proprietary and Confidential | Earnings and Tax Rate from Continuing Operations Reconciliation ($ Millions or $ Earnings Per Share) (1) The company uses Comparable Earnings, Comparable Earnings per Share (EPS). Comparable Earnings Before Income Tax (EBT) and Comparable Tax Rate, all from Continuing Operations, non-GAAP financial measures, which provide useful information to investors and allow for better year over year comparison of operating performance because they exclude from Earnings, EPS, EBT and Tax Rate from Continuing Operations non-operating pension costs, which we consider to be costs outside of the operational performance of the business and can significantly change from year to year. These non-GAAP financial measures also exclude other significant items that are not representative of our ongoing business operations and allow for better year over year comparison. 26 1Q14 - 1Q14 - 1Q14 - 1Q14 - 1Q14 - Earnings EPS EBT Tax Tax Rate Reported 49.1$ 0.92$ 75.0$ 25.9$ 34.5% Non-Operating Pension Costs 1.9 0.03 3.3 1.4 Tax Law Change Benefit (1.8) (0.03) - 1.8 Comparable (1) 49.2$ 0.92$ 78.3$ 29.1$ 37.2% 1Q13 - 1Q13 - 1Q13 - 1Q13 - 1Q13 - Earnings EPS EBT Tax Tax Rate Reported 40.8$ 0.79$ 62.5$ 21.7$ 34.7% Non-Operating Pension Costs 3.1 0.06 5.2 2.2 Foreign Currency Translation Benefit (1.9) (0.04) (1.9) - Comparable (1) 42.0$ 0.81$ 65.8$ 23.9$ 36.2%

 

Proprietary and Confidential | ($ Millions) (1) Earnings calculated based on a 12-month rolling period. (2) Interest expense includes interest for on and off-balance sheet vehicle obligations. (3) Income taxes were calculated by excluding taxes related to comparable earnings items and interest expense. (4) The average is calculated based on the average GAAP balances. (5) Represents comparable earnings items for those periods. 27 1Q13 1Q14 Net Earnings (1) 216$ 246$ Restructuring and Other Charges, Net and Other Items 14 2 Income Taxes 100 130 Adjusted Earnings Before Income Taxes 329 378 Adjusted Interest Expense (2) 143 140 Adjusted Income Taxes (3) (170) (183) Adjusted Net Earnings 302$ 335$ Average Total Debt(4) 3,793$ 4,072$ Average Off-Balance Sheet Debt(4) 147 119 Average Total Shareholders' Equity(4) 1,440 1,698 Average Adjustments to Shareholders' Equity (5) (4) (2) Adjusted Average Total Capital 5,376$ 5,887$ Adjusted Return on Capital 5.6% 5.7% Adjusted Return on Capital Reconciliation

 

Proprietary and Confidential | Debt to Equity Reconciliation ($ Millions) Note: Amounts may not recalculate due to rounding. % to % to % to % to % to % to % to % to 12/31/2008 Equity 12/31/2009 Equity 12/31/2010 Equity 12/31/2011 Equity 12/31/2012 Equity 12/31/2013 Equity 3/31/2014 Equity 3/31/2013 Equity Balance Sheet Debt $2,863 213% $2,498 175% $2,747 196% $3,382 257% $3,821 260% $4,189 221% $4,447 234% $3,846 258% Receivables Sold - - - - - - - - PV of minimum lease payments and guaranteed residual values under operating leases for vehicles 163 119 100 64 148 95 95 144 Total Obligatio s $3,026 225% $2,617 183% $2,847 203% $3,446 261% $3,969 270% $4,284 226% $4,542 239% $3,990 268% 28

 

Proprietary and Confidential | Cash Flow Reconciliation ($ Millions) (1) Capital expenditures presented net of changes in accounts payable related to purchases of revenue earning equipment. (2) Free Cash Flow excludes acquisitions and changes in restricted cash. 29 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 3/31/14 3/31/13 Cash Provided by Operating Activities from Continuing Operations 1,248$ 985$ 1,028$ 1,042$ 1,134$ 1,223$ 238$ 249$ Proceeds from Sales (Primarily Revenue Earning Equipment) 262 216 235 300 413 452 128 113 Proceeds from Sale and Leaseback of Assets - - - 37 130 - - - Collections of Direct Finance Leases 61 65 62 62 72 71 16 27 Other, net - - 3 - - 8 (1) 4 Total Cash Generated 1,571 1,266 1,328 1,442 1,749 1,754 380 393 Capital Expenditures (1) (1,230) (652) (1,070) (1,699) (2,133) (2,140) (579) (420) Free Cash Flow (2) 341$ 614$ 258$ (257)$ (384)$ (386)$ (198)$ (27)$ Memo: Depreciation Expense 836$ 881$ 834$ 872$ 940$ 957$ 249$ 232$ Gains on Vehicle Sales, Net 39$ 12$ 29$ 63$ 89$ 96$ 29$ 23$

 

Proprietary and Confidential |