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Ryder
🇺🇸 NYSE:R
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•
Mar 31, 2020

Ryder Q1 2020 Earnings Report

Ryder's Q1 2020 results were impacted by COVID-19 and changes in residual value estimates.

Key Takeaways

Ryder reported a decrease in total revenue by 1% to $2.2 billion, while operating revenue increased by 1% to $1.8 billion. The company experienced a GAAP EPS loss of $(2.09) compared to a profit of $0.87 in the prior year, and a non-GAAP EPS loss of $(1.38) versus a profit of $1.11 in the prior year, reflecting impacts from changes in residual value estimates and COVID-19. Ryder's solid liquidity position was enhanced and free cash flow is expected to increase due to reduced capital expenditures.

Total revenue decreased by 1% to $2.2 billion, while operating revenue increased by 1% to $1.8 billion.

GAAP EPS from continuing operations resulted in a loss of $(2.09) compared to a profit of $0.87 in the prior year.

Comparable EPS from continuing operations resulted in a loss of $(1.38) compared to a profit of $1.11 in the prior year.

COVID-19 had an estimated negative pre-tax earnings impact of approximately $70 million.

Total Revenue
$2.16B
Previous year: $2.18B
-0.9%
EPS
-$1.38
Previous year: $1.11
-224.3%
Rental utilization
64.4%
Previous year: 74.9%
-14.0%
Customer vehicles SelectCare
56.9K
Previous year: 55.9K
+1.8%
Gross Profit
$268M
Previous year: $401M
-33.1%
Cash and Equivalents
$397M
Previous year: $62.8M
+532.6%
Free Cash Flow
$111M
Total Assets
$14.4B
Previous year: $13.9B
+3.0%

Ryder

Ryder

Ryder Revenue by Segment

Forward Guidance

Due to the uncertainty relating to the magnitude and duration of COVID-19 crisis, Ryder has suspended providing earnings guidance.

Positive Outlook

  • Ryder solidified its liquidity position with $1.7 billion of available liquidity.
  • The company anticipates generating record levels of free cash flow this year.
  • Ryder is well positioned to support operations and fund remaining 2020 debt maturities.
  • The company expects to continue to pay its dividend.
  • Ryder is focused on strategic initiatives to achieve its long-term target ROE of 15%.

Challenges Ahead

  • The COVID-19 pandemic negatively impacted performance for the quarter.
  • The company expects lower used vehicle pricing in the second half of 2020.
  • Demand for commercial rental vehicles has decreased significantly.
  • SCS automotive volumes have declined significantly due to production shutdowns.
  • Ryder has established additional bad debt reserves due to slower COVID-19 related payment activity with certain customers.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Ryder