Ryder System Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

r-20200630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED June 30, 2020


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

Commission File Number: 1-4364

RYDER SYSTEM, INC.

(Exact name of registrant as specified in its charter)

Florida

59-0739250

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

11690 N.W. 105th Street

Miami,

Florida

33178

(305)

500-3726

(Address of principal executive offices, including zip code)

(Registrant’s telephone number, including area code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	R	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☑

The number of shares of Ryder System, Inc. Common Stock ($0.50 par value per share) outstanding at June 30, 2020 was 53,818,841.

RYDER SYSTEM, INC.

FORM 10-Q QUARTERLY REPORT

TABLE OF CONTENTS



		Page No.

PART I FINANCIAL INFORMATION

ITEM 1 Financial Statements (unaudited)

	Condensed Consolidated Statements of Earnings	1

	Condensed Consolidated Statements of Comprehensive Income	2

	Condensed Consolidated Balance Sheets	3

	Condensed Consolidated Statements of Cash Flows	4

	Condensed Consolidated Statements of Shareholders' Equity	5

	Notes to Condensed Consolidated Financial Statements	7

ITEM 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations			26

ITEM 3 Quantitative and Qualitative Disclosures About Market Risk			57

ITEM 4 Controls and Procedures			57

PART II OTHER INFORMATION

ITEM 1 Legal Proceedings			58

ITEM 1A Risk Factors			58

ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds			60







ITEM 6 Exhibits			61

SIGNATURE			62

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

RYDER SYSTEM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(unaudited)


	Three months ended June 30,						Six months ended June 30,
	2020		2019		2020		2019
	(In thousands, except per share amounts)
Lease & related maintenance and rental revenues	$	868,660	$	933,833	$	1,796,416	$	1,833,392
Services revenue	942,267		1,159,100		2,054,455		2,291,148
Fuel services revenue	84,355		152,060		205,717		300,780
Total revenues	1,895,282		2,244,993		4,056,588		4,425,320

Cost of lease & related maintenance and rental	775,350		687,540		1,593,642		1,351,829
Cost of services	793,353		976,405		1,747,782		1,948,095
Cost of fuel services	77,980		148,363		198,429		291,638
Other operating expenses	29,849		29,663		63,414		63,289
Selling, general and administrative expenses	208,564		226,416		432,683		457,741
Non-operating pension costs	936		6,713		2,157		13,175
Used vehicle sales, net	9,488		18,140		30,172		26,357
Interest expense	67,285		60,759		129,851		116,095
Miscellaneous (income) loss, net	(9,946)		(21,911)		(1,278)		(30,133)
Restructuring and other items, net	37,200		9,836		68,147		16,014
	1,990,059		2,141,924		4,264,999		4,254,100

Earnings (loss) from continuing operations before income taxes	(94,777)		103,069		(208,411)		171,220
Provision for (benefit from) income taxes	(21,072)		27,617		(25,577)		49,878
Earnings (loss) from continuing operations	(73,705)		75,452		(182,834)		121,342
Earnings (loss) from discontinued operations, net of tax	(394)		(237)		(878)		(811)
Net earnings (loss)	$	(74,099)	$	75,215	$	(183,712)	$	120,531

Earnings (loss) per common share — Basic
Continuing operations	$	(1.41)	$	1.44	$	(3.50)	$	2.31
Discontinued operations	(0.01)		—		(0.02)		(0.02)
Net earnings (loss)	$	(1.42)	$	1.43	$	(3.52)	$	2.29

Earnings (loss) per common share — Diluted
Continuing operations	$	(1.41)	$	1.43	$	(3.50)	$	2.30
Discontinued operations	(0.01)		—		(0.02)		(0.02)
Net earnings (loss)	$	(1.42)	$	1.43	$	(3.52)	$	2.28

See accompanying notes to condensed consolidated financial statements.

Note: EPS amounts may not be additive due to rounding.

RYDER SYSTEM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)


	Three months ended June 30,						Six months ended June 30,
	2020		2019		2020		2019
	(In thousands)

Net earnings (loss)	$	(74,099)	$	75,215	$	(183,712)	$	120,531

Other comprehensive income (loss):








Changes in currency translation adjustment and other	7,878		(7,763)		(76,742)		7,999

Amortization of pension and postretirement items	7,371		7,377		15,150		14,845

Income tax expense related to amortization of pension and postretirement items	(1,492)		(1,381)		(3,105)		(3,395)
Amortization of pension and postretirement items, net of tax	5,879		5,996		12,045		11,450


Change in net actuarial loss and prior service cost	(4,539)		(9,440)		(4,539)		(9,440)
Income tax benefit related to change in net actuarial loss and prior service cost	1,087		2,237		1,087		2,237
Change in net actuarial loss and prior service cost, net of taxes	(3,452)		(7,203)		(3,452)		(7,203)

Other comprehensive income (loss), net of taxes	10,305		(8,970)		(68,149)		12,246

Comprehensive income	$	(63,794)	$	66,245	$	(251,861)	$	132,777

See accompanying notes to condensed consolidated financial statements.

RYDER SYSTEM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)


	June 30, 2020		December 31, 2019
	(In thousands, except share amounts)
Assets:
Current assets:
Cash and cash equivalents	$	831,469	$	73,584
Receivables, net	1,087,639		1,228,490
Inventories	62,282		80,822
Prepaid expenses and other current assets	151,319		179,155
Total current assets	2,132,709		1,562,051
Revenue earning equipment, net	9,569,839		10,427,664
Operating property and equipment, net of accumulated depreciation of $1,246,069 and $1,224,216, respectively	913,080		917,799
Goodwill	474,480		475,025
Intangible assets, net	46,694		50,905
Sales-type leases and other assets	1,071,949		1,041,890
Total assets	$	14,208,751	$	14,475,334

Liabilities and shareholders’ equity:
Current liabilities:
Short-term debt and current portion of long-term debt	$	1,460,604	$	1,154,564
Accounts payable	425,686		594,712
Accrued expenses and other current liabilities	869,315		876,077
Total current liabilities	2,755,605		2,625,353
Long-term debt	6,687,096		6,770,224
Other non-current liabilities	1,496,471		1,442,003
Deferred income taxes	1,110,487		1,161,444
Total liabilities	12,049,659		11,999,024

Commitments and contingencies (Note 17)
Shareholders’ equity:
Preferred stock, no par value per share — authorized, 3,800,917; none outstanding, June 30, 2020 and December 31, 2019	—		—
Common stock, $0.50 par value per share — authorized, 400,000,000; outstanding, June 30, 2020 — 53,818,841 and December 31, 2019 — 53,278,316	26,909		26,639
Additional paid-in capital	1,113,883		1,108,649
Retained earnings	1,922,940		2,177,513
Accumulated other comprehensive loss	(904,640)		(836,491)
Total shareholders’ equity	2,159,092		2,476,310
Total liabilities and shareholders’ equity	$	14,208,751	$	14,475,334

See accompanying notes to condensed consolidated financial statements.

RYDER SYSTEM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


	Six months ended June 30,
	2020		2019
	(In thousands)
Cash flows from operating activities from continuing operations:
Net earnings (loss)	$	(183,712)	$	120,531
Less: Loss from discontinued operations, net of tax	(878)		(811)
Earnings (loss) from continuing operations	(182,834)		121,342
Depreciation expense	1,056,171		768,030

Used vehicle sales, net	30,172		26,357
Non-cash lease expense	45,055		46,856
Non-operating pension costs and share-based compensation expense	12,787		28,097
Other non-cash charges, net	74,854		39,557
Deferred income tax expense (benefit)	(36,148)		41,688
Collections on sales-type leases	54,724		63,047
Changes in operating assets and liabilities, net of acquisitions:
Receivables	69,212		8,196
Inventories	18,680		(1,524)
Prepaid expenses and other assets	(7,338)		(6,175)
Accounts payable	(54,434)		(3,965)
Accrued expenses and other non-current liabilities	17,884		(86,447)
Net cash provided by operating activities from continuing operations	1,098,785		1,045,059

Cash flows from investing activities from continuing operations:
Purchases of property and revenue earning equipment	(704,930)		(2,210,761)
Sales of revenue earning equipment	214,189		210,081
Sales of operating property and equipment	4,231		46,189



Other	(5,756)		—
Net cash used in investing activities from continuing operations	(492,266)		(1,954,491)

Cash flows from financing activities from continuing operations:
Net borrowings (repayments) of commercial paper and revolving credit facilities	(457,553)		227,023
Debt proceeds	1,756,497		1,691,906
Debt repaid	(1,064,096)		(902,814)
Dividends on common stock	(60,155)		(57,651)
Common stock issued	5,542		6,244
Common stock repurchased	(11,924)		(21,220)

Tax withholding on shares settled	(4,302)		(3,529)
Debt issuance costs and other items	(9,277)		(2,920)
Net cash provided by (used in) financing activities from continuing operations	154,732		937,039

Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(3,022)		(2,611)
Increase (decrease) in cash, cash equivalents, and restricted cash from continuing operations	758,229		24,996
Increase (decrease) in cash, cash equivalents, and restricted cash from discontinued operations	(344)		(605)
Increase (decrease) in cash, cash equivalents, and restricted cash	757,885		24,391
Cash, cash equivalents, and restricted cash at beginning of year	73,584		68,111
Cash, cash equivalents, and restricted cash at end of period	$	831,469	$	92,502

See accompanying notes to condensed consolidated financial statements.

RYDER SYSTEM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(unaudited)


			Three months ended June 30, 2020


	Preferred Stock		Common Stock					Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss
	Amount		Shares	Par										Total
	(In thousands, except share amounts)
Balance at April 1, 2020	$	—	53,735,964	$	26,867	$	1,103,928	$	2,026,886	$	(914,945)	$	2,242,736

Comprehensive income	—		—	—		—		(74,099)		10,305		(63,794)
Common stock dividends declared —$0.56 per share	—		—	—		—		(29,847)		—		(29,847)
Common stock issued under employee stock award and stock purchase plans ⁽¹⁾	—		83,145	42		2,428		—		—		2,470
Benefit plan stock sales (purchases) ⁽²⁾	—		(268)	—		(12)		—		—		(12)
Common stock repurchases	—		—	—		—		—		—		—
Share-based compensation	—		—	—		7,539		—		—		7,539
Balance at June 30, 2020	$	—	53,818,841	$	26,909	$	1,113,883	$	1,922,940	$	(904,640)	$	2,159,092


			Three months ended June 30, 2019

Preferred
Stock

Common Stock

Additional
Paid-In Capital

Retained Earnings

Accumulated
Other
Comprehensive Loss

Amount

Par

Total

(In thousands, except share amounts)

Balance at April 1, 2019

—

53,300,205

26,651

1,086,714

Price	50.86	EPS	3
Shares	53	P/E	20
MCap	2,710	P/FCF	2
Net Debt	6,730	EBIT	371
TEV	9,440	TEV/EBIT	25
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-06-30	Filed 2020-07-31
10-Q	2020-03-31	Filed 2020-05-01
10-K	2019-12-31	Filed 2020-02-27
10-Q	2019-09-30	Filed 2019-10-30
10-Q	2019-06-30	Filed 2019-07-30
10-Q	2019-03-31	Filed 2019-05-09
10-K	2018-12-31	Filed 2019-02-21
10-Q	2018-09-30	Filed 2018-10-26
10-Q	2018-06-30	Filed 2018-07-25
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10-Q	2016-03-31	Filed 2016-04-26
10-K	2015-12-31	Filed 2016-02-12
10-Q	2015-09-30	Filed 2015-10-22
10-Q	2015-06-30	Filed 2015-08-07
10-Q	2015-03-31	Filed 2015-04-22
10-K	2014-12-31	Filed 2015-02-13
10-Q	2014-09-30	Filed 2014-10-22
10-Q	2014-06-30	Filed 2014-07-23
10-Q	2014-03-31	Filed 2014-04-23
10-K	2013-12-31	Filed 2014-02-14
10-Q	2013-09-30	Filed 2013-10-22
10-Q	2013-06-30	Filed 2013-07-23
10-Q	2013-03-31	Filed 2013-04-23
10-K	2012-12-31	Filed 2013-02-14
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10-Q	2011-09-30	Filed 2011-10-26
10-Q	2011-06-30	Filed 2011-07-27
10-Q	2011-03-31	Filed 2011-04-26
10-K	2010-12-31	Filed 2011-02-15
10-Q	2010-09-30	Filed 2010-10-21
10-Q	2010-06-30	Filed 2010-07-23
10-Q	2010-03-31	Filed 2010-04-21
10-K	2009-12-31	Filed 2010-02-12

8-K	2020-07-29	Earnings, Regulation FD, Exhibits
8-K	2020-05-22
8-K	2020-05-01
8-K	2020-04-29
8-K	2020-04-02
8-K	2020-04-01
8-K	2020-02-13
8-K	2020-02-06
8-K	2019-10-29
8-K	2019-08-29
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8-K	2019-03-27
8-K	2019-02-14
8-K	2018-10-26
8-K	2018-09-28
8-K	2018-09-25
8-K	2018-07-25
8-K	2018-05-09
8-K	2018-04-24
8-K	2018-02-16
8-K	2018-02-09
8-K	2018-01-29

EX-31.1	ryderex3112q2020.htm
EX-31.2	ryderex3122q2020.htm
EX-32	ryderex322q2020.htm

R 10Q Quarterly Report

Ryder System Earnings 2020-06-30