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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.
Ryder
Ryder
Ryder Revenue by Segment
Revenue by Segment
ChoiceLease Revenue
CapyFin.comCommercial rental Revenue
CapyFin.comSelectCare & other Revenue
CapyFin.comFuel services Revenue
CapyFin.comSupply Chain Solutions Revenue
CapyFin.comDedicated Transport Revenue
CapyFin.com 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