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Sep 30, 2020
Ryder Q3 2020 Earnings Report
Ryder's Q3 2020 earnings were reported.
Key Takeaways
Ryder reported Q3 total revenue of $2.2 billion, a decrease of 3%. GAAP EPS from continuing operations was $0.85, compared to a loss of $(1.75) in the prior year. Comparable EPS (non-GAAP) from continuing operations was $1.21, versus a loss of $(1.49) in the prior year.
Used vehicle sales results benefited from record sales volume and higher sequential truck and tractor pricing.
Commercial rental demand and utilization improved throughout the quarter, with September utilization above same month in prior year.
Supply chain automotive revenue returned to pre-pandemic levels.
Fleet management results benefited from a declining impact from prior residual value estimate changes as well as improved lease performance.
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
Looking ahead to the fourth quarter, we anticipate returns in supply chain and dedicated to moderate, reflecting seasonality and lower COVID-related activity, and to be within their target ranges for the full year.
Positive Outlook
- In rental, we expect return improvements to accelerate in the fourth quarter due to higher demand and improved utilization.
- In lease, we expect the fleet to continue to decline; however, pricing is expected to be higher reflecting our pricing initiative.
- We anticipate record free cash flow of $1.4 to $1.5 billion in 2020, significantly above the prior year negative free cash flow of $(1.1) billion.
- Additionally, in the fourth quarter we expect to resume our anti-dilutive share repurchase program which was temporarily paused due to COVID-19.
- In the fourth quarter, we will be awarding our front-line employees a special recognition and retention bonus for their extraordinary efforts as essential workers during this pandemic, resulting in a one-time expense of approximately $30 million.
Challenges Ahead
- returns in supply chain and dedicated to moderate, reflecting seasonality and lower COVID-related activity
- fleet to continue to decline
- One-time expense of approximately $30 million due to awarding front-line employees a special recognition and retention bonus
- Depreciation due to prior residual value estimate changes
- Lower COVID-related activity
Revenue & Expenses
Visualization of income flow from segment revenue to net income