-----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, l0CcImw7TkBkV+8KwU8P6XfGvKwkQ8hJWjnxNK1SSEQG8pakFV+ldw4sXVN1NYyD 6Ns2DOStDz8y+b8r/iIbEw== 0000950144-94-001468.txt : 19940815 0000950144-94-001468.hdr.sgml : 19940815 ACCESSION NUMBER: 0000950144-94-001468 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19940630 FILED AS OF DATE: 19940812 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: 94543422 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, INC. FORM 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 June 30, 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 78,569,251 shares of common stock ($0.50 par value per share) outstanding as of July 31, 1994. 2 PART I. FINANCIAL INFORMATION Item 1. Financial Statements CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS Ryder System, Inc. and Consolidated Subsidiaries
- -------------------------------------------------------------------------------------------------------------- Periods ended June 30, 1994 and 1993 Second Quarter Six Months --------------------- --------------------- (In thousands, except per share amounts) 1994 1993 1994 1993 - -------------------------------------------------------------------------------------------------------------- REVENUE $1,176,339 1,080,233 2,248,176 2,079,890 - -------------------------------------------------------------------------------------------------------------- Operating expense 907,998 843,262 1,768,279 1,650,822 Depreciation expense, net of gains (quarter, 1994 - $18,816, 1993 - $12,842; six months, 1994 - $36,589, 1993 - $28,364) 146,946 135,660 286,493 263,313 Interest expense 35,663 31,989 67,579 62,059 Miscellaneous expense (income) 1,201 (337) 964 (65) - -------------------------------------------------------------------------------------------------------------- 1,091,808 1,010,574 2,123,315 1,976,129 - -------------------------------------------------------------------------------------------------------------- Earnings from continuing operations before income taxes 84,531 69,659 124,861 103,761 Provision for income taxes 34,689 28,915 51,281 43,071 - -------------------------------------------------------------------------------------------------------------- Earnings from continuing operations 49,842 40,744 73,580 60,690 Loss from discontinued operations - (162,948) - (158,658) - -------------------------------------------------------------------------------------------------------------- Earnings (loss) before cumulative effect of change in accounting 49,842 (122,204) 73,580 (97,968) Cumulative effect of change in accounting - - - (25,433) - -------------------------------------------------------------------------------------------------------------- NET EARNINGS (LOSS) 49,842 (122,204) 73,580 (123,401) Preferred dividend requirements - 1,028 - 3,617 - -------------------------------------------------------------------------------------------------------------- EARNINGS (LOSS) APPLICABLE TO COMMON SHARES $ 49,842 (123,232) 73,580 (127,018) - -------------------------------------------------------------------------------------------------------------- Earnings (loss) per common share: Continuing operations $ 0.64 0.51 0.94 0.74 Discontinued operations - (2.11) - (2.06) Cumulative effect of change in accounting - - - (0.33) - -------------------------------------------------------------------------------------------------------------- EARNINGS (LOSS) PER COMMON SHARE $ 0.64 (1.60) 0.94 (1.65) - -------------------------------------------------------------------------------------------------------------- Cash dividends per common share $ 0.15 0.15 0.30 0.30 - -------------------------------------------------------------------------------------------------------------- Average common and common equivalent shares 78,386 77,158 78,415 77,109 ==============================================================================================================
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
- ----------------------------------------------------------------------------------------------- Six months ended June 30, 1994 and 1993 (In thousands) 1994 1993 - ----------------------------------------------------------------------------------------------- CONTINUING OPERATIONS CASH FLOWS FROM OPERATING ACTIVITIES: Earnings from continuing operations $ 73,580 60,690 Depreciation expense, net of gains 286,493 263,313 Deferred income taxes 19,004 14,350 Decrease (increase) in working capital items (60,102) 30,463 Other, net 7,055 9,062 - ----------------------------------------------------------------------------------------------- 326,030 377,878 - ----------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Debt proceeds 469,387 412,085 Debt repaid, including capital lease obligations (99,505) (158,123) Preferred stock redeemed - (100,000) Common stock issued 16,171 16,215 Dividends on common and preferred stock (23,301) (27,695) - ----------------------------------------------------------------------------------------------- 362,752 142,482 - ----------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and revenue earning equipment (849,818) (650,707) Sales of property and revenue earning equipment 140,891 126,266 Sale and leaseback of revenue earning equipment 100,000 - Acquisitions, net of cash acquired (72,984) - Other, net 23,600 19,800 - ----------------------------------------------------------------------------------------------- (658,311) (504,641) - ----------------------------------------------------------------------------------------------- NET CASH FLOWS FROM CONTINUING OPERATIONS 30,471 15,719 NET CASH FLOWS FROM DISCONTINUED OPERATIONS - 995 - ----------------------------------------------------------------------------------------------- INCREASE IN CASH AND CASH EQUIVALENTS 30,471 16,714 Cash and cash equivalents at January 1 56,691 50,747 - ----------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT JUNE 30 $ 87,162 67,461 ===============================================================================================
See accompanying notes to consolidated condensed financial statements. 4 Item 1. Financial Statements (continued) CONSOLIDATED CONDENSED BALANCE SHEETS Ryder System, Inc. and Consolidated Subsidiaries
- ------------------------------------------------------------------------------------------------------------ June 30, December 31, (Dollars in thousands, except per share amounts) 1994 1993 - ------------------------------------------------------------------------------------------------------------ ASSETS Current assets: Cash and cash equivalents $ 87,162 56,691 Receivables 294,328 197,956 Inventories 51,486 52,963 Tires in service 157,182 144,488 Deferred income taxes 52,402 60,326 Prepaid expenses and other current assets 112,822 89,020 - ------------------------------------------------------------------------------------------------------------ Total current assets 755,382 601,444 - ------------------------------------------------------------------------------------------------------------ Revenue earning equipment 5,138,832 4,784,122 Less accumulated depreciation (2,146,893) (2,108,075) - ------------------------------------------------------------------------------------------------------------ Net revenue earning equipment 2,991,939 2,676,047 - ------------------------------------------------------------------------------------------------------------ Operating property and equipment 963,645 913,421 Less accumulated depreciation (421,995) (402,932) - ------------------------------------------------------------------------------------------------------------ Net operating property and equipment 541,650 510,489 - ------------------------------------------------------------------------------------------------------------ Direct financing leases and other assets 216,382 223,374 Intangible assets and deferred charges 271,150 247,034 - ------------------------------------------------------------------------------------------------------------ $ 4,776,503 4,258,388 - ------------------------------------------------------------------------------------------------------------ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 119,069 156,503 Accounts payable 356,508 297,282 Accrued expenses 524,146 514,982 - ------------------------------------------------------------------------------------------------------------ Total current liabilities 999,723 968,767 - ------------------------------------------------------------------------------------------------------------ Long-term debt 1,780,977 1,374,943 Other non-current liabilities 399,868 397,873 Deferred income taxes 537,022 526,624 Shareholders' equity: Common stock of $0.50 par value per share (shares outstanding at June 30, 1994 - 78,146,988; December 31, 1993 - 77,294,484) 525,717 508,832 Retained earnings 546,902 496,623 Translation adjustment (13,706) (15,274) - ------------------------------------------------------------------------------------------------------------ Total shareholders' equity 1,058,913 990,181 - ------------------------------------------------------------------------------------------------------------ $ 4,776,503 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) ACQUISITIONS The Company completed a number of acquisitions during the second quarter of 1994 including a provider of full service truck leasing, contract maintenance, truck rental and dedicated contract carriage and a logistics management company. All acquisitions have been accounted for using the purchase method and were not material in relation to the Company's total assets. The consolidated condensed financial statements reflect the results of operations of the acquired businesses from the acquisition dates. These acquisitions resulted in goodwill of $26.4 million which is being amortized principally over 10 years. Had the acquisitions been consummated on January 1, 1993, revenue and net earnings for the six-month periods ended June 30, 1994 and 1993 would not have been materially affected. (C) DISCONTINUED OPERATIONS On December 7, 1993, the Company completed the spin off of its aviation services subsidiaries into a new public company, Aviall, Inc. 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. Results of the Company's aviation services subsidiaries in 1993 include a one-time after tax charge of $169.4 million and have been reported as discontinued operations. Revenue for the three and six months ended June 30, 1993 for the discontinued aviation services subsidiaries was $288.3 million and $565.3 million, respectively. (D) 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 Suite 2900 Telecopier 305-577-0544 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 June 30, 1994, and the related consolidated condensed statements of earnings and cash flows for the six-month periods ended June 30, 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 July 21, 1994 7 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition -- Three and six months ended June 30, 1994 and 1993 RESULTS OF OPERATIONS The Company's earnings from continuing operations before income taxes were $85 million in the second quarter of 1994, compared with $70 million in last year's second quarter. Earnings from continuing operations before income taxes in the first half of 1994 were $125 million, compared with $104 million in the first half of 1993. Earnings in both the second quarter and the first half of 1994 benefited primarily from higher revenue, improved margins in both commercial and consumer truck rental, and higher gains on sales of vehicles. Also contributing to increased earnings were lower costs in Automotive Carriers primarily as a result of improved operating efficiencies and a fourth quarter 1993 organizational streamlining. Earnings from continuing operations after taxes in the second quarter of 1994 were $50 million, or $0.64 per common share, compared with $41 million, or $0.51 per common share, in the second quarter of 1993. Earnings from continuing operations after taxes in the first half of 1994 were $74 million, or $0.94 per common share, compared with $61 million, or $0.74 per common share, in the first half of 1993. The Company's effective tax rate for continuing operations in the first half of 1994 was 41.1%, compared with 41.5% in the first half of last year. The Company reported a net loss in the second quarter of 1993 of $122 million, or $1.60 per common share, which included an after tax charge of $169 million to restructure the discontinued aviation segment which was spun off in December 1993. In the first half of 1993, the Company reported a net loss of $123 million, or $1.65 per common share, which included the aviation restructuring charge and a first quarter after tax charge of $25 million related to a change in accounting for postretirement benefits. Revenue increased 9% and 8% in the second quarter and the first half of 1994, respectively, compared with the same periods last year. Vehicle Leasing & Services revenue increased 10% in both the second quarter and the first half of 1994 compared with the same periods in 1993. Automotive Carriers revenue was slightly higher in the second quarter and the first half of 1994 compared with last year. Operating expense increased 8% and 7% in the second quarter and first half of 1994, respectively, compared with the same periods in 1993. These increases were due primarily to Vehicle Leasing & Services' higher revenue combined with increased reengineering, sales and marketing spending. Depreciation expense (net of gains) in the second quarter and first half of 1994 increased 8% and 9%, respectively, compared with the same periods in 1993. A larger vehicle fleet as a result of record lease sales activity produced most of these increases. Partially offsetting these increases were higher gains on vehicle sales of $6 million and $8 million in the second quarter and first half of 1994, respectively, compared with the same periods in 1993. Higher second quarter gains resulted from both an increase in the number of vehicles sold and the average gain per vehicle while the increase in the first half was attributable to a higher average gain per vehicle sold. Interest expense increased $4 million and $6 million in the second quarter and first half of 1994, respectively, compared with the same periods in 1993. These increases were due primarily to higher average outstanding debt levels in 1994 resulting from the growth in lease sales and the vehicle fleet, compared with average outstanding debt relating to continuing operations in 1993. 8 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition (continued) -- Three and six months ended June 30, 1994 and 1993 VEHICLE LEASING & SERVICES Revenue in both the second quarter and first half of 1994 increased 10% compared with the same periods in 1993. Revenue from full service truck leasing, the division's largest product line, increased 3% in both the second quarter and first half of 1994, compared with the same periods last year. Revenue benefited from an increase in lease sales partially offset by lower prices on new leases compared with prices on those expiring. Revenue from commercial truck rental increased 21% and 20% in the second quarter and first half of 1994, respectively, compared with the same periods in 1993, reflecting higher demand in both periods. Revenue from consumer truck rental increased 21% in both the second quarter and first half of 1994 compared with the same periods last year, primarily resulting from higher demand for local and long-distance rentals. To satisfy the higher demand, the Company increased the fleet size in both rental product lines in the first six months of 1994 over 1993 levels. Dedicated logistics revenue increased 16% and 13% in the second quarter and first half of 1994, respectively, compared with the same periods last year due to higher levels of new business sales made. Revenue from the division's public transportation services businesses increased 4% in both the second quarter and first half of 1994 compared with the same periods last year, due primarily to several new student transportation contracts. Vehicle Leasing & Services earned pretax profits of $74 million in the second quarter of 1994 compared with $65 million in the second quarter of 1993. For the six months ended June 30, 1994, pretax earnings were $111 million compared with $99 million last year. 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 second quarter and first half of 1994 compared with the same periods last year. Margins in both 1994 periods were impacted by lower new lease prices combined with an increase in interest expense. Margin and margin as a percentage of revenue for commercial and consumer truck rental increased in both the second quarter and first half of 1994 compared with the same periods last year, reflecting greater demand, a larger fleet and higher fleet utilization. Dedicated logistics margin dollars increased during the second quarter and first half of 1994 compared with the same periods last year due to higher revenue; margin as a percentage of revenue was relatively unchanged in the same periods. For the division as a whole, higher overall margin dollars combined with higher vehicle gains in both 1994 periods were partially offset by continued investments in reengineering, sales and marketing programs, and other systems and logistics technology activity. AUTOMOTIVE CARRIERS Revenue in both the second quarter and first half of 1994 was slightly higher than last year's second quarter and first half. Revenue for both periods in 1994 reflects an increase in the number of units shipped, offset by a decline in the average length of haul. The division's 1994 shipments of General Motors vehicles were lower in both the second quarter and first six months of 1994 compared with the same periods in 1993, primarily as a result of extended model changeover periods. However, this decrease was more than offset by increases in the number of vehicles shipped for other manufacturers of 15% and 14% in the second quarter and first half of 1994, respectively, resulting from an increase in automobile sales. Automotive Carriers pretax earnings were $17 million in the second quarter of 1994, compared with $12 million in the prior year's second quarter. For the six months ended June 30, 1994, pretax earnings were $25 million compared with $16 million in the first half of last year. Pretax earnings benefited primarily from improved operating efficiencies, a fourth quarter 1993 organizational streamlining and lower depreciation expense resulting from an increase in the average age of the fleet. Earnings in the second half of 1994 will be somewhat impacted by an increase in Teamsters wage and benefit costs which became effective June 1, 1994. 9 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition (continued) -- Three and six months ended June 30, 1994 and 1993 OTHER Other, which is comprised primarily of corporate administrative costs, reported losses in the second quarter and first half of 1994 of $6 million and $11 million, respectively, compared with losses of $8 million and $12 million in the same periods last year. LIQUIDITY AND CAPITAL RESOURCES Total capital expenditures in the first half of 1994 were $850 million, compared with $651 million in the first half of 1993. Capital expenditures for full service truck leasing and commercial truck rental increased $133 million and $40 million, respectively, in the first half of 1994 compared with the first half of 1993, due primarily to higher lease sales and an effort to increase market share within certain rental market segments. Consumer truck rental capital expenditures decreased $15 million in the first half of 1994 compared with last year due to higher levels of spending in 1993 as a result of a different level of fleet replacement. Capital expenditures in Automotive Carriers declined $11 million in the first half of 1994 compared with the same period last year reflecting the timing of fleet purchases. Capital expenditures in all other product lines increased $52 million in the first half of 1994 compared with the first half of 1993 reflecting higher expenditures on revenue earning equipment in the Company's public transportation services businesses and increased expenditures on operating property, primarily relating to reengineering and systems initiatives, and facilities improvements. During the second quarter of 1994, the Company made expenditures of $73 million on strategic acquisitions including substantially all the assets of LogiCorp, Inc., a logistics management company, and Lend Lease Trucks Inc., a provider of full service truck leasing, contract maintenance, truck rental and dedicated contract carriage. The Company will continue to evaluate strategic acquisition opportunities as a means of strengthening its core businesses. Cash flow from operating activities in the first six months of 1994 was $326 million, compared with $378 million in the same period last year. The decrease resulted primarily from an increase in several working capital items partially offset by improved earnings and an increase in depreciation expense. The most significant working capital change impacting comparisons was an increase in receivables. Higher receivables in 1994 resulted from an increase in revenue combined with the impact of a reduction in the outstanding balance of receivables sold on a revolving basis. Cash flow from continuing operating activities plus asset sales as a percentage of capital expenditures was 55% in the first half of 1994, compared with 77% in the same period last year. This percentage declined as a result of changes in working capital requirements and the strategic timing of capital expenditures, but is likely to increase in the remainder of 1994. Total debt at June 30, 1994 was $1.9 billion, compared with $1.5 billion at December 31, 1993. During the first six months of 1994, the Company issued $211 million of medium-term unsecured notes and made $85 million of scheduled unsecured note payments. U.S. commercial paper outstanding at the end of the second quarter of 1994 was $307 million, compared with $84 million at December 31, 1993. The Company's debt to equity ratio at June 30, 1994, was 179%, compared with 155% at December 31, 1993. As part of its financing program, the Company periodically enters into sale and leaseback agreements for revenue earning equipment which are accounted for as operating leases. Proceeds from sale-leaseback transactions were $100 million during the first six months of 1994. The Company did not enter into any sale-leaseback transactions during 1993. The Company had interest rate swap agreements outstanding at June 30, 1994 and December 31, 1993 with aggregate notional amounts of $676 million and $315 million, respectively. At June 30, 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 enters into these agreements to manage its third party interest rate exposure. None of the Company's derivative financial instruments are leveraged or held for trading purposes. The Company had contractual lines of credit totaling $694 million at June 30, 1994, of which $375 million was available. Also, at June 30, 1994, the Company had $660 million of debt securities available under a shelf registration filed in 1992. 10 Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition (continued) - - Three and six months ended June 30, 1994 and 1993 SELECTED FINANCIAL AND OPERATIONAL DATA (Dollars in thousands)
Second Quarter Six Months --------------------- ---------------------- 1994 1993 1994 1993 - ------------------------------------------------------------------------------------------------ VEHICLE LEASING & SERVICES Revenue: Full service lease and programmed maintenance $ 456,405 441,598 901,245 873,713 Commercial and consumer rental 288,423 238,622 515,510 426,477 Dedicated logistics 165,503 142,822 314,020 278,156 Other 153,018 142,694 306,373 283,851 Eliminations (60,085) (56,088) (116,635) (108,297) ---------- -------- ---------- ---------- Total 1,003,264 909,648 1,920,513 1,753,900 Operating expense 753,923 687,980 1,470,261 1,348,715 Depreciation expense 155,704 136,931 303,844 269,601 Gains on sale of revenue earning equipment (18,551) (12,741) (36,222) (28,254) Interest expense 37,365 32,366 70,547 64,201 Miscellaneous expense (income) 1,304 (208) 1,305 159 ---------- -------- ---------- ---------- Earnings before income taxes $ 73,519 65,320 110,778 99,478 ========== ======== ========== ========== Fleet size (owned and leased): Full service lease 80,794 73,744 Commercial and consumer rental 75,252 67,395 Buses operated or managed 12,200 12,068 Ryder Truck Rental service locations 1,065 972 - ------------------------------------------------------------------------------------------------ AUTOMOTIVE CARRIERS Revenue $ 177,328 174,661 335,834 334,277 ========== ======== ========== ========== Earnings before income taxes $ 17,037 12,059 25,217 16,158 ========== ======== ========== ========== Total units transported (000) 1,708 1,623 3,212 3,072 Total miles traveled (000) 64,380 65,258 121,864 125,059 Auto transports: Owned and leased 3,916 4,250 Owner-operators 527 493 Locations 88 91 - ------------------------------------------------------------------------------------------------
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 June 30, 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: August 12, l994 /s/ Edwin A. Huston ---------------------------------------- Edwin A. Huston Senior Executive Vice President-Finance and Chief Financial Officer (Principal Financial Officer) Date: August 12, l994 /s/ Anthony G. Tegnelia ---------------------------------------- Anthony G. Tegnelia Senior Vice President and Controller (Principal Accounting Officer) EX-11 2 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 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. EX-15 3 KPMG PEAT MARWICK LETTER 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 July 21, 1994 related to our review of interim financial information: Form S-3: - 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 August 12, 1994 -----END PRIVACY-ENHANCED MESSAGE-----