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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 September 30, 1995
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
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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: YES X NO
--- ---
Ryder System, Inc. (the "Registrant" or the "Company") had 79,211,058 shares of
common stock ($0.50 par value per share) outstanding as of October 31, 1995.
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<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
<TABLE>
<CAPTION>
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
Ryder System, Inc. and Consolidated Subsidiaries
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Periods ended September 30, 1995 and 1994 THIRD QUARTER NINE MONTHS
-------------------------- ------------------------
(In thousands, except per share amounts) 1995 1994 1995 1994
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<S> <C> <C> <C> <C>
REVENUE $1,264,049 1,194,675 3,821,974 3,442,851
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Operating expense 1,003,975 930,047 3,023,076 2,698,326
Depreciation expense, net of gains (quarter, 1995 - $20,756,
1994 - $16,696; nine months, 1995 - $70,713, 1994 - $53,285) 172,853 153,950 487,018 440,443
Interest expense 50,251 38,069 141,697 105,648
Miscellaneous expense (income) (7) 1,411 1,161 2,375
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1,227,072 1,123,477 3,652,952 3,246,792
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Earnings before income taxes and cumulative effect
of change in accounting 36,977 71,198 169,022 196,059
Provision for income taxes 16,046 29,241 70,026 80,522
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Earnings before cumulative effect of change in accounting 20,931 41,957 98,996 115,537
Cumulative effect of change in accounting -- -- (7,759) --
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NET EARNINGS $ 20,931 41,957 91,237 115,537
====================================================================================================================================
Earnings per common share:
Earnings before cumulative effect of change in accounting $ 0.26 0.53 1.25 1.47
Cumulative effect of change in accounting -- -- (0.10) --
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EARNINGS PER COMMON SHARE $ 0.26 0.53 1.15 1.47
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Cash dividends per common share $ 0.15 0.15 0.45 0.45
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Average common and common equivalent shares 79,511 79,177 79,264 78,669
====================================================================================================================================
</TABLE>
See accompanying notes to consolidated condensed financial statements.
<PAGE>
ITEM 1. Financial Statements (continued)
<TABLE>
<CAPTION>
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Ryder System, Inc. and Consolidated Subsidiaries
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Nine months ended September 30, 1995 and 1994
(In thousands) 1995 1994
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 91,237 115,537
Cumulative effect of change in accounting 7,759 --
Depreciation expense, net of gains 487,018 440,443
Deferred income taxes 51,231 36,957
Proceeds from sales of receivables 30,000 --
Decrease (increase) in other working capital items and other, net 5,427 (47,276)
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672,672 545,661
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CASH FLOWS FROM FINANCING ACTIVITIES:
Debt proceeds 965,788 479,103
Debt repaid, including capital lease obligations (439,519) (143,222)
Common stock issued 7,968 27,389
Dividends on common stock (35,486) (35,112)
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498,751 328,158
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CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and revenue earning equipment (1,742,084) (1,301,318)
Sales of property and revenue earning equipment 262,292 198,377
Sale and leaseback of revenue earning equipment 300,000 300,000
Acquisitions, net of cash acquired -- (94,664)
Other, net 29,130 28,993
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(1,150,662) (868,612)
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INCREASE IN CASH AND CASH EQUIVALENTS 20,761 5,207
Cash and cash equivalents at January 1 75,878 56,691
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CASH AND CASH EQUIVALENTS AT SEPTEMBER 30 $ 96,639 61,898
====================================================================================================================================
</TABLE>
See accompanying notes to consolidated condensed financial statements.
<PAGE>
ITEM 1. Financial Statements (continued)
<TABLE>
<CAPTION>
CONSOLIDATED CONDENSED BALANCE SHEETS
Ryder System, Inc. and Consolidated Subsidiaries
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SEPTEMBER 30, DECEMBER 31,
(Dollars in thousands, except per share amounts) 1995 1994
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<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 96,639 75,878
Receivables 304,276 316,855
Inventories 60,099 57,124
Tires in service 191,733 164,347
Deferred income taxes 39,954 51,619
Prepaid expenses and other current assets 112,537 92,999
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Total current assets 805,238 758,822
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Revenue earning equipment 5,838,335 5,330,586
Less accumulated depreciation (2,147,736) (2,195,522)
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Net revenue earning equipment 3,690,599 3,135,064
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Operating property and equipment 1,148,141 1,044,808
Less accumulated depreciation (500,472) (450,480)
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Net operating property and equipment 647,669 594,328
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Direct financing leases and other assets 260,989 223,680
Intangible assets and deferred charges 303,890 302,579
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$ 5,708,385 5,014,473
================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 168,344 118,103
Accounts payable 398,604 422,532
Accrued expenses 546,558 552,518
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Total current liabilities 1,113,506 1,093,153
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Long-term debt 2,317,942 1,794,795
Other non-current liabilities 471,810 426,848
Deferred income taxes 607,633 570,653
Shareholders' equity:
Common stock of $0.50 par value per share
(shares outstanding at
September 30, 1995 - 79,130,770;
December 31, 1994 - 78,760,742) 547,332 539,101
Retained earnings 658,977 603,226
Translation adjustment (8,815) (13,303)
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Total shareholders' equity 1,197,494 1,129,024
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$ 5,708,385 5,014,473
================================================================================
</TABLE>
See accompanying notes to consolidated condensed financial statements.
<PAGE>
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 1994 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) ACCOUNTING CHANGE
Effective January 1, 1995, the Company adopted Statement of Financial
Accounting Standards No. 116, "Accounting for Contributions Received and
Contributions Made," which requires that promises to make contributions be
recognized in the financial statements as an expense and a liability when
a promise is made. As a result, a pretax charge of $12.2 million ($7.8
million after tax, or $0.10 per common share) was recorded as the
cumulative effect of a change in accounting principle to establish a
liability for the present value of the Company's total outstanding
charitable commitments as of January 1, 1995. Prior to the adoption of the
new statement, charitable contributions were recorded in the financial
statements in the period in which they were paid. Approximately two-thirds
of the charitable commitments recognized as a result of adopting the new
statement will be paid in 1995 with the remainder payable from 1996
through 1999.
<PAGE>
KPMG PEAT MARWICK LLP
CERTIFIED PUBLIC ACCOUNTANTS
One Biscayne Tower Telephone 305-358-2300
Suite 2900 Telecopier 305-577-0544
2 South Biscayne Boulevard
Miami, FL 33131
INDEPENDENT ACCOUNTANTS' REVIEW REPORT
The Board of Directors and Shareholders
Ryder System, Inc.:
We have reviewed the accompanying consolidated condensed balance sheet of Ryder
System, Inc. and subsidiaries as of September 30, 1995, and the related
consolidated condensed statements of earnings for the three- and nine-month
periods ended September 30, 1995 and 1994 and the consolidated condensed
statements of cash flows for the nine-month periods ended September 30, 1995 and
1994. These consolidated condensed 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 consolidated condensed financial statements referred to above 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, 1994, 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, 1995, 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, 1994,
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, in
1995, Ryder System, Inc. and subsidiaries changed its method of accounting for
contributions received and contributions made.
KPMG PEAT MARWICK LLP
Miami, Florida
October 19, 1995
<PAGE>
ITEM 2. Management's Discussion and Analysis of Results of Operations
and Financial Condition --
Three and nine months ended September 30, 1995 and 1994
RESULTS OF OPERATIONS
The Company reported earnings before income taxes of $37 million in the third
quarter of 1995, compared with $71 million in last year's third quarter.
Earnings before income taxes and cumulative effect of change in accounting in
the first nine months of 1995 were $169 million, compared with $196 million in
the first nine months of 1994. Third quarter pretax earnings were significantly
impacted by a strike by the International Brotherhood of Teamsters against the
Automotive Carrier Division and separation and relocation costs of $12 million
in the Vehicle Leasing & Services Division. As a result of the strike,
Automotive Carriers reported a pretax loss of $14 million in the third quarter
of 1995 compared with a pretax profit of $10 million in last year's third
quarter.
Net earnings in the third quarter of 1995 were $21 million, or $0.26 per common
share, compared with $42 million, or $0.53 per common share, in the third
quarter of 1994. Earnings before cumulative effect of change in accounting in
the first nine months of 1995 were $99 million, or $1.25 per common share,
compared with $116 million, or $1.47 per common share, in the first nine months
of 1994. Net earnings in the first nine months of 1995 were $91 million, or
$1.15 per common share, which included a first quarter after tax charge of $8
million for the cumulative effect of a change in accounting for charitable
contributions (see "Accounting Change and Recent Accounting Pronouncements"
below). The Company's effective tax rate in the first nine months of 1995 was
relatively unchanged compared with the same period in 1994.
Vehicle Leasing & Services revenue increased 10% in the third quarter and 14% in
the first nine months of 1995, compared with the same periods in 1994. Revenue
growth was led by the division's two primary contractual product lines, full
service truck leasing and dedicated logistics. Automotive Carriers revenue was
26% and 8% lower in the third quarter and first nine months of 1995,
respectively, compared with the same periods last year due to the impact of the
Teamsters strike.
Total operating expense as a percentage of revenue was higher in both the third
quarter and first nine months of 1995 compared with the same periods in 1994.
These increases were due primarily to the growth of the logistics business,
higher equipment rental costs due to an increase in the number of vehicles
leased by the Company as lessee under operating lease agreements and higher
proportionate costs at Automotive Carriers due to the impact of the Teamsters
strike on revenue.
Depreciation expense (before gains on vehicle sales) increased 13% in both the
third quarter and first nine months of 1995 compared with the same periods last
year. Higher depreciation resulted from an increase in the size of the vehicle
fleet, primarily as a result of strong sales of new contractual business within
the full service lease and dedicated logistics product lines over the past
several quarters. Gains on vehicle sales were $4 million and $17 million higher
in the third quarter and first nine months of 1995, respectively, compared with
the same periods in 1994. Higher gains in both 1995 periods reflected an
<PAGE>
ITEM 2. Management's Discussion and Analysis of Results of Operations
and Financial Condition (continued) --
Three and nine months ended September 30, 1995 and 1994
increase in the number of units sold compared with the same periods in 1994. The
average gain per vehicle sold in 1995 was about the same as in 1994.
Interest expense increased $12 million and $36 million in the third quarter and
first nine months of 1995, respectively, compared with the same periods in 1994.
These increases were due primarily to higher outstanding debt levels, as a
result of expanded investment in the vehicle fleet, combined with higher average
rates on the Company's variable-rate debt. Less than one-third of the Company's
financing obligations at September 30, 1995 have variable interest rates.
VEHICLE LEASING & SERVICES
Revenue in the third quarter and first nine months of 1995 for Vehicle Leasing &
Services increased 10% and 14%, respectively, compared with the same periods in
1994. Revenue from full service truck leasing, the division's largest product
line, increased 10% in the third quarter and 13% in the first nine months of
1995 compared with the same periods last year. Dedicated logistics revenue
increased 30% and 39% in the third quarter and first nine months of 1995,
respectively, over the same 1994 periods. Revenue increases for both product
lines were primarily due to strong new business sales over the past several
quarters. New business sales for dedicated logistics for the nine months ended
September 30, 1995 were nearly double last year's record pace at September 30,
1994. Although slightly behind last year's record pace, full service truck lease
sales have also continued to be strong in 1995. Revenue from the division's
public transportation services businesses increased 8% and 10% in the third
quarter and first nine months of 1995, respectively, compared with the same
periods last year, due primarily to the addition of new contracts. Commercial
truck rental revenue increased 1% and 9% in the third quarter and first nine
months of 1995, respectively, compared with the same periods in 1994. Higher
demand created by new full service truck lease customers using rental vehicles
while awaiting delivery of new lease vehicles was the largest contributing
factor to the nine month increase. Revenue from consumer truck rental was about
the same in both the third quarter and first nine months of 1995 compared with
the same periods last year.
Pretax profits for Vehicle Leasing & Services were $57 million in the third
quarter of 1995 compared with $68 million in the third quarter of 1994. For the
nine months ended September 30, 1995, pretax earnings were $171 million compared
with $179 million last year. Pretax earnings in the third quarter and first nine
months of 1995 were impacted by separation and relocation costs of approximately
$12 million. These costs were incurred as a result of the third quarter
consolidation of the division's twenty consumer truck rental administrative
locations into two central locations as well as headcount reductions driven by
the implementation of new systems and processes in the division's commercial
businesses.
<PAGE>
ITEM 2. Management's Discussion and Analysis of Results of Operations
and Financial Condition (continued) --
Three and nine months ended September 30, 1995 and 1994
Margin (revenue less direct operating expenses, depreciation and interest
expense) from full service truck leasing was slightly higher and margin as a
percentage of revenue was lower in the third quarter and first nine months of
1995 compared with the same periods last year. As a result of significant market
competition, full service truck leasing margins continued to be impacted by
lower prices on newer leases compared with prices on older and expiring leases.
Higher interest costs in 1995 compared with 1994 also impacted margins.
Dedicated logistics margin was higher in the third quarter and first nine months
of 1995 compared with the same periods in 1994 as a result of strong revenue
growth. Margin as a percentage of revenue for this product line in both 1995
periods was comparable with the same periods in 1994. Margin and margin as a
percentage of revenue from the division's public transportation services
businesses were higher in the first nine months of 1995 compared with the first
nine months of 1994, due mainly to increased revenue and lower workers'
compensation expense. Margins for this business unit in the third quarter, its
seasonal low period, were comparable with those in last year's third quarter.
Commercial truck rental margin and margin as a percentage of revenue were lower
in the third quarter and first nine months of 1995 compared with the same
periods last year. Lower margins were due primarily to higher interest expense
and lower asset utilization as a result of slowing rental demand during 1995 on
a larger fleet. Consumer truck rental margin and margin as a percentage of
revenue were relatively unchanged in the third quarter and first nine months of
1995 compared with the same periods in 1994. Margins in both 1995 periods
reflected lower asset utilization and higher interest expense, offset by lower
vehicle liability expense. Total fleet levels in the rental product lines were
reduced in the third quarter of 1995 from second quarter levels and continued
fleet level reductions are planned for the fourth quarter.
For the division as a whole, earnings in the third quarter and first nine months
of 1995 benefited from higher overall margin dollars in both periods and
increases in gains on vehicle sales of $4 million and $16 million, respectively,
compared with the same periods in 1994. These items were offset by separation
and relocation costs of $12 million, higher indirect operating expenses
resulting from general increases in business activity, and continued spending
related to reengineering and systems initiatives and the development of greater
logistics design, operations and sales capabilities.
AUTOMOTIVE CARRIERS
Third quarter results for Automotive Carriers were significantly impacted by the
International Brotherhood of Teamsters strike which began on September 7, 1995
and lasted for 32 days. In the third quarter of 1995, revenue and vehicle
shipments were significantly lower than last year's third quarter and, as such,
the division reported a pretax loss of $14 million. Prior to commencement of the
strike, 1995 year-to-date revenue, vehicle shipments and earnings were
comparable with 1994 levels.
<PAGE>
ITEM 2. Management's Discussion and Analysis of Results of Operations
and Financial Condition (continued) --
Three and nine months ended September 30, 1995 and 1994
On October 9, 1995, the Teamsters and representatives of the automobile
truckaway industry tentatively reached a four-year agreement (retroactive to May
21, 1995). The new agreement includes provisions for wage and benefit increases
over the term of the agreement. The division is commencing negotiations with its
customers for the purpose of obtaining rate relief relating to the new
agreement.
In the fourth quarter of 1995 the division expects to transport many of the
vehicles manufactured during the strike which were not yet shipped as of the end
of the strike. Increased vehicle shipments in the fourth quarter combined with
other planned actions should allow the division to recover much of its third
quarter loss.
OTHER
Other, which is comprised primarily of corporate administrative costs, reported
net expenses in the third quarter and first nine months of 1995 of $6 million
and $17 million, respectively, compared with net expenses of $6 million and $18
million, respectively, in the same periods last year.
ACCOUNTING CHANGE AND RECENT ACCOUNTING PRONOUNCEMENTS
The Company adopted Statement of Financial Accounting Standards No. 116,
"Accounting for Contributions Received and Contributions Made," effective
January 1, 1995. The Statement requires that promises to make contributions be
recognized in the financial statements as an expense and a liability when a
promise is made. As a result, the Company recorded a first quarter pretax charge
of $12 million ($8 million after tax, or $0.10 per common share), to record the
cumulative effect of the change in accounting principle and establish a
liability for the present value of the Company's total outstanding charitable
commitments as of January 1, 1995.
In 1995, the Financial Accounting Standards Board issued Statement No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to
Be Disposed Of" and Statement No. 123, "Accounting for Stock-Based
Compensation." The Company will adopt both statements in the first quarter of
1996 and, based on current circumstances, does not believe the effect of the
adoptions will be material to the Company's financial position or results of
operations.
<PAGE>
ITEM 2. Management's Discussion and Analysis of Results of Operations
and Financial Condition (continued) --
Three and nine months ended September 30, 1995 and 1994
LIQUIDITY AND CAPITAL RESOURCES
Total capital expenditures in the first nine months of 1995 were $1.7 billion,
compared with $1.3 billion in the first nine months of 1994, due primarily to
growth within the Company's contractual product lines. Capital expenditures for
full service truck leasing (which include the equipment required to service new
dedicated logistics customers) were $1.0 billion in the first nine months of
1995, an increase of $292 million compared with last year's first nine months,
due primarily to continued high levels of new business sales. Capital
expenditures for commercial and consumer truck rental increased $71 million
in the first nine months of 1995 compared with last year's first nine months,
due primarily to the replacement of older units. Capital expenditures in
Automotive Carriers increased $33 million in the first nine months of 1995
compared with the same period last year, also as a result of planned fleet
replacement. The remaining increase in capital expenditures of $45 million in
the first nine months of 1995 compared with the first nine months of 1994,
reflected higher expenditures on operating property and equipment, primarily
relating to reengineering and systems initiatives, and maintenance facilities
improvements. An increase of $64 million in proceeds from sales of property and
revenue earning equipment in the first nine months of 1995 compared with the
same period last year offset a portion of the increase in capital expenditures.
Total debt at September 30, 1995 was $2.5 billion, compared with $1.9 billion at
December 31, 1994. The increase in debt was due to financing requirements
associated with 1995 capital expenditures. During the first nine months of 1995
the Company issued $778 million of unsecured medium-term notes. U.S. commercial
paper outstanding at the end of the third quarter of 1995 was $123 million,
compared with $44 million at December 31, 1994. The Company redeemed $300
million of unsecured notes at par and made $70 million of scheduled unsecured
note payments during the first nine months of 1995. The Company's foreign debt
increased $88 million in the first nine months of 1995. The Company's debt to
equity ratio at September 30, 1995 was 208%, compared with 205% at June 30, 1995
and 169% at December 31, 1994.
Cash flow from operating activities in the first nine months of 1995 was $673
million compared with $546 million in the same period last year. The 1995
increase resulted primarily from higher non-cash charges for depreciation and
deferred income taxes, proceeds of $30 million from sales of receivables as part
of the Company's receivables securitization program and increased cash provided
from changes in other working capital items. The lower level of cash provided
from other working capital items in 1994 was primarily due to a lower balance of
receivables sold at September 30, 1994 compared with December 31, 1993. Cash
flow from operating activities (excluding sales of receivables) plus asset sales
as a percentage of capital expenditures was 52% in the first nine months of 1995
compared with 57% in the same period last year.
As part of its financing program, the Company periodically enters into sale and
leaseback agreements for revenue earning equipment which are treated as
operating leases. Proceeds from sale-leaseback transactions were $300 million in
the first nine months of both 1995 and 1994. At September 30, 1995 and December
31, 1994, the Company had interest rate swap agreements with aggregate notional
amounts outstanding of $773 million and $673 million, respectively. In the first
<PAGE>
ITEM 2. Management's Discussion and Analysis of Results of Operations
and Financial Condition (continued) --
Three and nine months ended September 30, 1995 and 1994
nine months of 1995 the Company entered into three interest rate swap agreements
with notional principal amounts totaling $100 million and terms ranging from six
months to two years, which modify variable interest rate reset dates on certain
obligations. The Company also had interest rate cap agreements with aggregate
notional amounts totaling $350 million outstanding at September 30, 1995 and
December 31, 1994. The interest rate swap and cap 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 has no derivative instruments held for trading purposes or
that are leveraged.
The Company had contractual lines of credit totaling $693 million at September
30, 1995, of which $552 million was available. Also, at September 30, 1995, the
Company had $457 million of debt securities available under a shelf registration
filed in 1995.
<PAGE>
ITEM 2. Management's Discussion and Analysis of Results of Operations
and Financial Condition (continued) --
Three and nine months ended September 30, 1995 and 1994
<TABLE>
<CAPTION>
SELECTED FINANCIAL AND OPERATIONAL DATA
(Dollars in thousands)
THIRD QUARTER NINE MONTHS
---------------------- ----------------------
1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
VEHICLE LEASING & SERVICES
Revenue:
Full service lease and programmed maintenance $ 526,957 477,426 1,551,127 1,378,671
Commercial and consumer rental 330,927 329,083 882,815 844,593
Dedicated logistics 234,834 181,038 688,776 495,058
Public transportation 76,120 70,357 287,698 261,088
Other and eliminations (5,718) (159) (15,567) (1,152)
--------- --------- --------- ---------
Total 1,163,120 1,057,745 3,394,849 2,978,258
Operating expense 891,409 802,489 2,618,166 2,272,750
Depreciation expense 184,435 162,651 527,540 466,495
Gains on sale of revenue earning equipment (20,151) (16,520) (68,916) (52,742)
Interest expense 50,434 39,552 144,925 110,099
Miscellaneous expense, net 221 1,572 1,751 2,877
--------- --------- --------- ---------
Earnings before income taxes $ 56,772 68,001 171,383 178,779
========= ========= ========= =========
Fleet size (owned and leased):
Full service lease 96,839 85,237
Commercial and consumer rental 84,880 76,763
Buses operated or managed 12,703 12,558
Ryder Truck Rental service locations 1,121 1,080
- ------------------------------------------------------------------------------------------------
AUTOMOTIVE CARRIERS
Revenue $ 104,150 141,535 439,756 477,369
========= ========= ========= =========
Earnings (loss) before income taxes $ (13,622) 9,646 14,834 34,863
========= ========= ========= =========
Total units transported (000) 987 1,413 4,269 4,625
Total miles traveled (000) 40,583 54,102 165,633 175,966
Auto transports:
Owned and leased 3,249 3,826
Owner-operators 458 507
Locations 83 91
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</TABLE>
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K:
(a) EXHIBITS
(3.1) The Ryder System, Inc. Restated Articles of Incorporation,
dated November 8, 1985, as amended through May 18, 1990,
previously filed with the Commission as an exhibit to the
Company's Annual Report on Form 10-K for the year ended
December 31, 1990, are incorporated by reference into this
report.
(3.2) The Ryder System, Inc. By-Laws, as amended through November
23, 1993, previously filed with the Commission as an exhibit
to the Company's Annual Report on Form 10-K for the year ended
December 31, 1993, are incorporated by reference into this
report.
(11) Statement regarding computation of per share earnings.
(15) Letter regarding unaudited interim financial statements.
(27) Financial data schedule (for SEC use only).
(b) REPORTS ON FORM 8-K
A report on Form 8-K, dated September 27, 1995, was filed by the
Registrant with respect to a press release commenting on expected
earnings for the three-month period ending September 30, 1995.
<PAGE>
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: November 8, 1995 /S/ EDWIN A. HUSTON
-------------------------------------
Edwin A. Huston
Senior Executive Vice President-Finance
and Chief Financial Officer
(Principal Financial Officer)
Date: November 8, 1995 /S/ ANTHONY G. TEGNELIA
---------------------------------------
Anthony G. Tegnelia
Senior Vice President
and Controller (Principal
Accounting Officer)
Exhibit 11
STATEMENT REGARDING 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.
KPMG PEAT MARWICK LLP
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 October 19, 1995 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.
-- Registration Statement No. 33-58667 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.
<PAGE>
The Board of Directors
Ryder System, Inc.
Page 2
-- 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.
-- Registration Statement No. 33-58001 covering the Ryder
System, Inc. Employee Savings Plan A.
-- Registration Statement No. 33-58003 covering the Ryder
System, Inc. Employee Savings Plan B.
-- Registration Statement No. 33-58045 covering the Ryder
System, Inc. Savings Restoration Plan.
-- Registration Statement No. 33-61509 covering the Ryder
System, Inc. Stock for Merit Increase Replacement Plan.
-- Registration Statement No. 33-62013 covering the Ryder
System, Inc. 1995 Stock Incentive 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 Act.
KPMG PEAT MARWICK LLP
Miami, Florida
November 8, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
RYDER SYSTEM, INC. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED CONDENSED
BALANCE SHEETS AND STATEMENTS OF EARNINGS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 96,639
<SECURITIES> 0
<RECEIVABLES> 304,276
<ALLOWANCES> 0
<INVENTORY> 60,099
<CURRENT-ASSETS> 805,238
<PP&E> 6,986,476
<DEPRECIATION> 2,648,208
<TOTAL-ASSETS> 5,708,385
<CURRENT-LIABILITIES> 1,113,506
<BONDS> 2,317,942
<COMMON> 547,332
0
0
<OTHER-SE> 650,162
<TOTAL-LIABILITY-AND-EQUITY> 5,708,385
<SALES> 0
<TOTAL-REVENUES> 3,821,974
<CGS> 0
<TOTAL-COSTS> 3,511,255
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 141,697
<INCOME-PRETAX> 169,022
<INCOME-TAX> 70,026
<INCOME-CONTINUING> 98,996
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 7,759
<NET-INCOME> 91,237
<EPS-PRIMARY> 1.15
<EPS-DILUTED> 0
</TABLE>
