-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, I1LS8ErCaB2MKMOqSLzkAw4jyXNP2Du3PT44msC8kIPFRsUT9mtOMW7JyAcDMbWu aPpLfnAG8U8Ha2Hn67dPeA== 0000950144-94-001091.txt : 19940520 0000950144-94-001091.hdr.sgml : 19940520 ACCESSION NUMBER: 0000950144-94-001091 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19940331 FILED AS OF DATE: 19940516 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RYDER SYSTEM INC CENTRAL INDEX KEY: 0000085961 STANDARD INDUSTRIAL CLASSIFICATION: 7510 IRS NUMBER: 590739250 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-04364 FILM NUMBER: 94528816 BUSINESS ADDRESS: STREET 1: 3600 NW 82ND AVE CITY: MIAMI STATE: FL ZIP: 33166 BUSINESS PHONE: 3055933726 MAIL ADDRESS: STREET 1: 3600 NW 82 AVENUE CITY: MIAMI STATE: FL ZIP: 33166 10-Q 1 RYDER SYSTEM - 10-Q 1 --------------------------------------------------------------------------- FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1994 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ------------ ------------ Commission File No. 1-4364 ------------------------------ RYDER SYSTEM, INC. (a Florida corporation) 3600 N.W. 82nd Avenue Miami, Florida 33166 Telephone (305) 593-3726 I.R.S. Employer Identification No. 59-0739250 ------------------------------ 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: X YES NO --- --- Ryder System, Inc. (the "Registrant" or the "Company") had 77,675,566 shares of common stock ($0.50 par value per share) outstanding as of April 30, 1994. --------------------------------------------------------------------------- 2 PART I. FINANCIAL INFORMATION Item 1. Financial Statements CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS Ryder System, Inc. and Consolidated Subsidiaries
--------------------------------------------------------------------------------------------------------- Three months ended March 31, 1994 and 1993 (In thousands, except per share amounts) 1994 1993* --------------------------------------------------------------------------------------------------------- REVENUE $ 1,071,837 999,657 --------------------------------------------------------------------------------------------------------- Operating expense 860,281 807,560 Depreciation expense, net of gains (1994 - $17,773; 1993 - $15,522) 139,547 127,653 Interest expense 31,916 30,070 Miscellaneous expense (income) (237) 272 --------------------------------------------------------------------------------------------------------- 1,031,507 965,555 --------------------------------------------------------------------------------------------------------- Earnings from continuing operations before income taxes 40,330 34,102 Provision for income taxes 16,592 14,156 --------------------------------------------------------------------------------------------------------- Earnings from continuing operations 23,738 19,946 Earnings from discontinued operations - 4,290 --------------------------------------------------------------------------------------------------------- Earnings before cumulative effect of change in accounting 23,738 24,236 Cumulative effect of change in accounting - (25,433) --------------------------------------------------------------------------------------------------------- NET EARNINGS (LOSS) 23,738 (1,197) Preferred dividend requirements - 2,589 --------------------------------------------------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON SHARES $ 23,738 (3,786) ========================================================================================================= Earnings (loss) per common share: Continuing operations $ 0.30 0.23 Discontinued operations - 0.05 Cumulative effect of change in accounting - (0.33) --------------------------------------------------------------------------------------------------------- EARNINGS (LOSS) PER COMMON SHARE $ 0.30 (0.05) --------------------------------------------------------------------------------------------------------- Cash dividends per common share $ 0.15 0.15 --------------------------------------------------------------------------------------------------------- Average common and common equivalent shares 78,444 77,059 =========================================================================================================
* Certain amounts have been restated for discontinued operations. See accompanying notes to consolidated condensed financial statements. 3 Item 1. Financial Statements (continued) CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS Ryder System, Inc. and Consolidated Subsidiaries
---------------------------------------------------------------------------------------------------- Three months ended March 31, 1994 and 1993 (In thousands) 1994 1993* ---------------------------------------------------------------------------------------------------- CONTINUING OPERATIONS CASH FLOWS FROM OPERATING ACTIVITIES: Earnings from continuing operations $ 23,738 19,946 Depreciation expense, net of gains 139,547 127,653 Deferred income taxes 6,892 4,171 Increase in other working capital items (70,003) (73,663) Other, net (6,376) 6,905 ---------------------------------------------------------------------------------------------------- 93,798 85,012 ---------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Debt proceeds 354,705 307,495 Debt repaid, including capital lease obligations (80,032) (124,602) Common stock issued 6,582 7,208 Dividends on common and preferred stock (11,634) (13,985) ---------------------------------------------------------------------------------------------------- 269,621 176,116 ---------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and revenue earning equipment (447,157) (330,759) Sales of property and revenue earning equipment 77,902 75,988 Other, net 11,717 10,181 ---------------------------------------------------------------------------------------------------- (357,538) (244,590) ---------------------------------------------------------------------------------------------------- NET CASH FLOWS FROM CONTINUING OPERATIONS 5,881 16,538 NET CASH FLOWS FROM DISCONTINUED OPERATIONS - (14,153) ---------------------------------------------------------------------------------------------------- INCREASE IN CASH AND CASH EQUIVALENTS 5,881 2,385 Cash and cash equivalents at January 1 56,691 50,747 ---------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT MARCH 31 $ 62,572 53,132 ====================================================================================================
* Certain amounts have been restated for discontinued operations. See accompanying notes to consolidated condensed financial statements. 4 Item 1. Financial Statements (continued) CONSOLIDATED CONDENSED BALANCE SHEETS Ryder System, Inc. and Consolidated Subsidiaries
--------------------------------------------------------------------------------------------------------- March 31, December 31, (Dollars in thousands, except per share amounts) 1994 1993 --------------------------------------------------------------------------------------------------------- ASSETS Current assets: Cash and cash equivalents $ 62,572 56,691 Receivables 261,857 197,956 Inventories 57,834 52,963 Tires in service 151,235 144,488 Deferred income taxes 50,970 60,326 Prepaid expenses and other current assets 137,756 89,020 --------------------------------------------------------------------------------------------------------- Total current assets 722,224 601,444 --------------------------------------------------------------------------------------------------------- Revenue earning equipment 4,990,817 4,784,122 Less accumulated depreciation (2,112,956) (2,108,075) --------------------------------------------------------------------------------------------------------- Net revenue earning equipment 2,877,861 2,676,047 --------------------------------------------------------------------------------------------------------- Operating property and equipment 933,363 913,421 Less accumulated depreciation (410,637) (402,932) --------------------------------------------------------------------------------------------------------- Net operating property and equipment 522,726 510,489 --------------------------------------------------------------------------------------------------------- Direct financing leases and other assets 212,586 223,374 Intangible assets and deferred charges 245,861 247,034 --------------------------------------------------------------------------------------------------------- $ 4,581,258 4,258,388 --------------------------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 119,267 156,503 Accounts payable 369,314 297,282 Accrued expenses 497,784 514,982 --------------------------------------------------------------------------------------------------------- Total current liabilities 986,365 968,767 --------------------------------------------------------------------------------------------------------- Long-term debt 1,676,540 1,374,943 Other non-current liabilities 388,535 397,873 Deferred income taxes 522,990 526,624 Shareholders' equity: Common stock of $0.50 par value per share (shares outstanding at March 31, 1994 - 77,631,053; December 31, 1993 - 77,294,484) 515,922 508,832 Retained earnings 508,727 496,623 Translation adjustment (17,821) (15,274) --------------------------------------------------------------------------------------------------------- Total shareholders' equity 1,006,828 990,181 --------------------------------------------------------------------------------------------------------- $ 4,581,258 4,258,388 =========================================================================================================
See accompanying notes to consolidated condensed financial statements. 5 Item 1. Financial Statements (continued) NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (a) INTERIM FINANCIAL STATEMENTS The accompanying unaudited consolidated condensed financial statements have been prepared by the Company in accordance with the accounting policies described in the 1993 Annual Report and should be read in conjunction with the consolidated financial statements and notes which appear in that report. These statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. (b) DISCONTINUED OPERATIONS On December 7, 1993, the Company completed the spin off of its aviation services subsidiaries into a new public company ("Aviall, Inc." or "Aviall"). Under the terms of the spin off, the Company distributed to common stockholders one share of Aviall, Inc. common stock for each four Ryder System, Inc. common shares owned. The distribution had the effect of reducing the Company's retained earnings by $314 million. Accordingly, the earnings from the Company's aviation services subsidiaries in 1993 have been reported as discontinued operations. The following summarizes the results of operations for the discontinued aviation services subsidiaries:
(In millions) First Quarter ------------- 1994 1993 ------- ------ Net sales $ - $277.0 ======== ====== Earnings before income taxes $ - $ 7.0 Provision for income taxes - 2.7 -------- ------ Earnings from discontinued operations $ - $ 4.3 ======== ======
(c) ACCOUNTING CHANGES Effective January 1, 1993, the Company adopted Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions." As a result, a pretax charge of $41 million ($25 million after tax) was recorded as the cumulative effect of a change in accounting principle to establish a liability for the present value of expected future benefits attributed to employees' service rendered prior to January 1, 1993. The Company also adopted Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes," effective January 1, 1993. 6 KPMG PEAT MARWICK CERTIFIED PUBLIC ACCOUNTANTS One Biscayne Tower Telephone 305-358-2300 Telecopier 305-577-0544 Suite 2900 2 South Biscayne Boulevard Miami, Fl. 33131 Independent Auditors' Report The Board of Directors Ryder System, Inc.: We have reviewed the accompanying consolidated condensed balance sheet of Ryder System, Inc. and subsidiaries as of March 31, 1994, and the related consolidated condensed statements of earnings and cash flows for the three-month periods ended March 31, 1994 and 1993. These financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the consolidated balance sheet of Ryder System, Inc. and subsidiaries as of December 31, 1993, and the related consolidated statements of earnings and cash flows for the year then ended (not presented herein); and in our report dated February 7, 1994, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated condensed balance sheet as of December 31, 1993, is fairly presented, in all material respects, in relation to the consolidated balance sheet from which it has been derived. As discussed in the notes to the consolidated condensed financial statements, the Company changed its method of accounting for income taxes and for postretirement benefits other than pensions in 1993. KPMG PEAT MARWICK Miami, Florida April 19, 1994 7 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition -- Three months ended March 31, 1994 and 1993 RESULTS OF OPERATIONS The Company recorded earnings from continuing operations before income taxes of $40 million in the first quarter of 1994, compared with $34 million in last year's first quarter. First quarter earnings in 1994 benefited primarily from higher revenue, improved asset utilization in both commercial and consumer truck rental and higher gains on sales of vehicles in Vehicle Leasing & Services. Also contributing to the improvement in earnings were lower costs in Automotive Carriers primarily as a result of the fourth quarter 1993 organizational streamlining. Earnings from continuing operations after taxes in the first quarter of 1994 were $24 million, or $0.30 per common share, compared with $20 million, or $0.23 per common share in the first quarter of 1993. The Company's effective tax rate for continuing operations in the first quarter of 1994 was 41.1%, compared with 41.5% in last year's first quarter. The Company reported a net loss in the first quarter of 1993 of $1 million which included an after tax charge of $25 million, or $0.33 per common share for a change in accounting for postretirement benefits, and earnings of $4 million, or $0.05 per common share, from Aviall, Inc., which was spun off in December 1993. Consolidated revenue in the first quarter of 1994 was $1.1 billion, compared with $1.0 billion in the first quarter of 1993. In Vehicle Leasing & Services revenue increased 9% compared with last year, while Automotive Carriers first quarter revenue was about the same as last year. Operating expense in the first quarter of 1994 increased 7% compared with the same period in the prior year. This increase is due primarily to the Company's increased revenue, reengineering and marketing efforts in Vehicle Leasing & Services. Offsetting some of these increases was a reduction in rent expense primarily due to a decrease in the number of vehicles leased by the Company under operating lease agreements. Depreciation expense (net of gains) in the first quarter of 1994 increased 9% compared with the first quarter of 1993. This increase was due to an increase in the fleet size needed to support higher 1994 revenues. A decrease in the number of vehicles on operating lease also contributed to higher depreciation expense in the first quarter of 1994. A portion of the increase in depreciation expense was offset by an increase of $2 million in gains on vehicle sales in the first quarter of 1994 compared with the prior year. The increase in vehicle gains is a result of an increase in the average gain per unit sold offset somewhat by a decrease in the number of units sold. Vehicle Leasing & Services First quarter Vehicle Leasing & Services revenue increased 9% compared with the same period in 1993. Revenue from full service truck leasing, the division's largest product line, increased 3% compared with last year. Revenue benefited from an increase in lease sales made partly offset by prices lower than on those leases that are expiring. First quarter revenue from commercial truck rental increased 20% compared with the same period in 1993, reflecting higher demand. Revenue from consumer truck rental in the first quarter of 1994 increased 22% compared with last year's first quarter, primarily as a result of higher demand for local and long-distance rentals. To satisfy the higher demand, the average fleet size increased in both rental product lines in the first quarter of 1994 compared with the first quarter of 1993. Dedicated logistics revenue increased 10% compared with the first quarter of 1993 due to new customers which were obtained through intensified marketing and sales efforts. Revenue from the division's public transportation services business in the first quarter of 1994 increased 4% compared with last year's first quarter, due to several new contracts. 8 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition (continued) -- Three months ended March 31, 1994 and 1993 Vehicle Leasing & Services earned pretax profits of $37 million in the first quarter of 1994 compared with $34 million in the first quarter of 1993. Margin (revenue less direct operating expenses, depreciation and interest expense) and margin as a percentage of revenue for full service truck leasing were slightly lower in the first quarter of 1994 compared with last year's first quarter. Lower first quarter margins are primarily a result of lower lease prices on new lease sales compared with prices on those leases that are expiring. Margin and margin as a percentage of revenue for both commercial and consumer truck rental increased substantially in the first quarter of 1994 compared with the same period last year, reflecting primarily higher revenue and improved asset utilization. Also contributing to the improvement in margins for consumer truck rental in 1994 were lower maintenance costs, primarily due to the decrease in the average age of the fleet. Dedicated logistics margin and margin as a percentage of revenue decreased during the first quarter of 1994 compared with last year's first quarter, primarily due to increased operating costs, weather-related inefficiencies and new business start-up costs. Margin and margin as a percentage of revenue for the division's public transportation services business were slightly higher in the first quarter of 1994 compared with the prior year, as a result of higher revenue. For the division as a whole, higher total margin and a slight increase in gains on vehicle sales in the first quarter of 1994 were partially offset by increased investments in reengineering, marketing and sales programs and systems technology. Automotive Carriers First quarter 1994 revenue for Automotive Carriers was about the same as in last year's first quarter. Revenue in 1994 reflects an increase in the number of units shipped, offset by a decline in the average length of haul. The division's first quarter 1994 shipments of General Motors vehicles were lower than in the first quarter of 1993, primarily as a result of extended model changeover periods and the closure of a General Motors assembly plant. However, offsetting this decrease was an increase of 13% in vehicle shipments for other manufacturers as a result of an increase in domestic automobile sales. Also favorably impacting first quarter 1994 revenue were shipments diverted from rail to highway carriers due to the impact of the harsh winter weather on certain rail operations. Automotive Carriers pretax earnings were $8 million in the first quarter of 1994, compared with $4 million in the prior year's first quarter. First quarter pretax earnings benefited primarily from efficiencies realized from a fourth quarter 1993 organizational streamlining and lower depreciation expense as a result of an increase in the average age of the fleet. Other Other, which is comprised primarily of corporate administrative costs, was a loss of $5 million in the first quarter of 1994 compared with a loss of $4 million in the same period last year, primarily due to lower reimbursement from the Company's operating segments. 9 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition (continued) -- Three months ended March 31, 1994 and 1993 LIQUIDITY AND CAPITAL RESOURCES Total capital expenditures in the first quarter of 1994 were $447 million, compared with $331 million in the first quarter of the prior year. In the full service truck leasing business, capital expenditures increased $66 million compared with last year's first quarter, due primarily to improved lease sales. Capital expenditures in commercial truck rental were about the same as the prior year level. Consumer truck rental capital expenditures increased $37 million in the first quarter of 1994 compared with the prior year primarily as a result of the timing of expenditures. Capital expenditures in Automotive Carriers declined $7 million in the first quarter of 1994 as a result of a decision to continue to age the fleet. Cash flow from operating activities in the first quarter of 1994 was $94 million, compared with $85 million in the first quarter of 1993. The increase resulted primarily from improved earnings in 1994 and an increase in depreciation offset somewhat by changes in working capital and other non-current liabilities. Cash flow from continuing operating activities plus asset sales as a percentage of capital expenditures was 38% in the first quarter of 1994, compared with 49% in the same period last year. This percentage declined as a result of the changes in working capital requirements and other non-current liabilities and the strategic timing of capital expenditures, but is likely to increase in the remainder of 1994. Total debt at March 31, 1994 was $1.8 billion, compared with $1.5 billion at the end of 1993. During the first quarter of 1994, the Company issued $61 million of medium-term unsecured notes and made $76 million of scheduled unsecured note payments. U.S. commercial paper outstanding at the end of the first quarter of 1994 was $362 million, compared with $84 million at December 31, 1993. The Company's debt to equity ratio at March 31, 1994, was 178%, compared with 155% at December 31, 1993. The Company had interest rate swap agreements outstanding at March 31, 1994 and December 31, 1993 with aggregate notional amounts of $676 million and $315 million, respectively. At March 31, 1994, interest rate cap agreements with aggregate notional amounts totaling $350 million were outstanding. These instruments have been assigned to specific financial obligations, and amounts to be paid or received under the agreements are recognized over the terms of the agreements as adjustments to earnings. The Company had contractual lines of credit totaling $693 million at March 31, 1994, of which $330 million was available. Also, at March 31, 1994, the Company had $810 million of debt securities available under shelf registrations filed in 1988 and 1992. 10 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition (continued) -- Three months ended March 31, 1994 and 1993 SELECTED FINANCIAL AND OPERATIONAL DATA (Dollars in thousands)
1994 1993 ----------------------------------------------------------------------------------------------------- VEHICLE LEASING & SERVICES Revenue: Full service lease and programmed maintenance $ 444,840 432,115 Commercial and consumer rental 227,087 187,855 Dedicated logistics 148,517 135,334 Other 153,355 141,157 Eliminations (56,550) (52,209) ---------- ------- Total 917,249 844,252 Operating expense 716,338 660,735 Depreciation expense 148,140 132,670 Gains on sale of revenue earning equipment (17,671) (15,513) Interest expense 33,182 31,835 Miscellaneous expense, net 1 367 ---------- ------- Earnings before income taxes $ 37,259 34,158 ========== ======= Fleet size (owned and leased): Full service lease 80,282 75,612 Commercial and consumer rental 71,239 63,727 Buses operated or managed 11,919 11,826 Ryder Truck Rental service locations 993 981 ----------------------------------------------------------------------------------------------------- AUTOMOTIVE CARRIERS Revenue $ 158,506 159,616 ========== ======= Earnings before income taxes $ 8,180 4,099 ========== ======= Total units transported (000) 1,504 1,449 Total miles traveled (000) 57,484 59,801 Auto transports: Owned and leased 4,061 4,234 Owner-operators 514 503 Locations 89 92 -----------------------------------------------------------------------------------------------------
11 PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K: (a) Exhibits (11) Statement re computation of per share earnings. (15) Letter re unaudited interim financial statements. (b) Form 8-K No Reports on Form 8-K were filed by the Registrant during the quarter ended March 31, 1994. 12 SIGNATURES 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 thereunto duly authorized. RYDER SYSTEM, INC. (Registrant) Date: May 16, 1994 /s/ Edwin A. Huston ------------------------------- Edwin A. Hutson Senior Executive Vice President-Finance and Chief Financial Officer (Principal Financial Officer) Date: May 16, 1994 /s/ Anthony G. Tegnelia ------------------------------- Anthony G. Tegnelia Senior Vice President and Controller (Principal Accounting Officer) EX-11 2 STATEMENT RE COMPUTATION OF PER SHARE EARNINGS 1 Exhibit 11 Statement re Computation of Per Share Earnings Primary earnings per share are computed by dividing earnings available to common shares by the weighted average number of common and common equivalent shares outstanding during the period. For purposes of computing primary earnings per share, common equivalent shares include the average number of common shares issuable upon the exercise of all employee stock options and awards and outstanding employee stock subscriptions, if dilutive, less the common shares which could have been purchased at the average market price during the period, with the assumed proceeds, including "windfall" tax benefits, from the exercise of the options, awards and subscriptions. Fully-diluted earnings per share are computed by dividing the sum of earnings available to common shares and dividends on preferred shares that are potentially dilutive by the weighted average number of common shares, common equivalent shares and common shares assumed converted from potentially dilutive securities outstanding during the period. For purposes of computing fully-diluted earnings per share, common equivalent shares are computed on a basis comparable to that for primary earnings per share, except that common shares are assumed to be purchased at the market price at the end of the period, if dilutive. Common shares assumed converted from potentially dilutive securities in the three-month period ended March 31, 1993, include common shares that would have been issuable upon the conversion of the Registrant's Fixed Rate Auction Preferred Stock, Series A and B (collectively the "FRAPS"), at the applicable rate which would have resulted in the greatest potential dilution. For the three-month period ended March 31, 1993, the FRAPS were antidilutive. In the second quarter of 1993 the Company redeemed all of the FRAPS. The FRAPS have therefore not been considered potentially dilutive securities in the computation of fully-diluted earnings per share for the three-month period ended March 31, 1994. EX-15 3 LETTER FROM KPMG PEAT MARWICK 1 EXHIBIT 15 KPMG PEAT MARWICK CERTIFIED PUBLIC ACCOUNTANTS One Biscayne Tower Telephone 305-358-2300 Suite 2900 Telecopier 305-577-0544 2 South Biscayne Boulevard Miami, FL. 33131 The Board of Directors Ryder System, Inc.: We acknowledge our awareness of the incorporation by reference in the following Registration Statements of our report dated April 19, 1994 related to our review of interim financial information: Form S-3: - Registration Statement No. 33-20359 covering $1,000,000,000 aggregate principal amount of debt securities. - Registration Statement No. 33-50232 covering $800,000,000 aggregate principal amount of debt securities. Form S-8: - Registration Statement No. 33-20608 covering the Ryder System Employee Stock Purchase Plan. - Registration Statement No. 33-4333 covering the Ryder Employee Savings Plan. - Registration Statement No. 1-4364 covering the Ryder System Profit Incentive Stock Plan. - Registration Statement No. 33-69660 covering the Ryder System, Inc. 1980 Stock Incentive Plan. - Registration Statement No. 33-37677 covering the Ryder System UK Stock Purchase Scheme. - Registration Statement No. 33-442507 covering the Ryder Student Transportation Services, Inc. Retirement/Savings Plan. - Registration Statement No. 33-63990 covering the Ryder System, Inc. Directors' Stock Plan.
Pursuant to Rule 436 (c) under the Securities Act of 1933, such report is not considered a part of a Registration Statement prepared or certified by an accountant or a report prepared or certified by an accountant within the meaning of Sections 7 and 11 of the Securities Act. KPMG PEAT MARWICK Miami, Florida May 16, 1994 -----END PRIVACY-ENHANCED MESSAGE-----