SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 20, 1995
RYDER SYSTEM, INC.
(Exact name of registrant as specified in its charter)
Florida 1-4364 59-0739250
(State or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
3600 N. W. 82nd Avenue, Miami, Florida 33166
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (305) 593-3726
<PAGE>
Item 5. Other Events.
On April 20, 1995, Ryder System, Inc. (the "Company") announced its
revenue and earnings for the three-month period ended March 31, 1995.
A copy of the Company's press release dated April 20, 1995, reporting its
first quarter revenue and earnings follows:
<PAGE>
RYDER REPORTS INCREASED REVENUE AND EARNINGS IN FIRST
QUARTER
MIAMI, FLORIDA, April 20, 1995 -- Dedicated logistics and full service
truck leasing led Ryder System, Inc. (NYSE:R) to strong revenue growth in
the first quarter of 1995, it was reported here today by Chairman,
President and Chief Executive Officer M. Anthony Burns. Burns noted that
revenue growth from Ryder's long-term contractual businesses continued a
trend which began in mid-1994, demonstrating the effectiveness of the
company's marketing and sales programs. First quarter earnings also were
higher, Burns said, despite what may have been the very first signs of an
economic slowdown, evidenced by some early-quarter weakness in consumer
demand for local truck rental and by lower levels of auto sales.
Revenue in the quarter was $1.23 billion, 15% higher than revenue of
$1.07 billion in the first quarter of 1994. Earnings before accounting
change were $26.6 million, or $0.34 per share, an increase of 13% in
earnings per share, compared with $23.7 million, or $0.30 per share, in
last year's first quarter.
Ryder adopted Statement of Financial Accounting Standards No. 116,
"Accounting for Contributions Received and Contributions Made," effective
January 1, 1995. Ryder has a long history of providing support to
charitable organizations in the communities in which it does business.
This statement required the company to record a liability for its total,
outstanding charitable commitments as of January 1, 1995 and to recognize
future charitable commitments in the period in which they are made.
Adoption of this statement resulted in a first quarter after tax charge of
$7.8 million, or $0.10 per share. As a result of the charge, the company
reported first quarter net earnings of $18.8 million, or $0.24 per share.
Operations
For dedicated logistics, the first quarter of 1995 was extremely
active, Burns said, with sales of more than $75 million in new business
and a quarterly revenue increase of nearly 50%. Higher costs, including
those related to start-ups and continuing investment in new capabilities,
however, kept the revenue increase from translating into an increase in
profitability during the quarter.
Burns said that sales of new full service truck leases were stronger
in the first quarter of 1995 than in the same period last year, and revenue
increased 13%. Operating margin in this business was also higher.
<PAGE>
Commercial and consumer truck rental continued to report higher
revenue in the quarter, with total revenue up 9%. Despite some apparent
weakness in consumer demand for local rentals, the truck rental businesses'
operating margin was about the same as in the first quarter of 1994, Burns
reported.
Public Transportation Services also recorded solid growth in both
revenue and profitability, supported by several new contracts. Revenue in
the quarter grew 13%.
The company's international performance was led, Burns said, by Ryder
Plc in the United Kingdom. Revenue there grew substantially, showing the
success of several acquisitions made in mid - and late - 1994. International
revenue overall increased 93%.
In the Automotive Carrier Division, Burns noted, the number of units
shipped was 7% higher in the first quarter of 1995 than it was in the same
quarter a year earlier. Revenue was up 4%, and earnings were also higher.
Commenting on other factors affecting Ryder's first quarter
performance, Burns said first quarter gains of $28.7 million on the sale
of vehicles were $10.9 million higher than gains in 1994's first quarter,
reflecting a 35% increase in the number of vehicles sold, combined with an
increase in the average gain per vehicle. However, the positive earnings
effect from gains was more than offset by higher interest expense, due to
higher levels of debt and higher rates on the company's variable rate debt.
Variable rate debt constitutes about one-third of Ryder's total debt portfolio.
The Company's first quarter earnings were also impacted by continued investment
in reengineering and technology enhancements, Burns noted.
Finally, Burns pointed out that the company is maintaining its focus
on generating higher levels of contractual business in order to enhance its
preeminent position in logistics and asset management, its core
competencies.
Note to Editor:
Ryder provides high-quality logistics and transportation solutions
throughout the United States and in Canada, the United Kingdom, Germany,
Poland and Mexico. Revenue from continuing operations in the 12 months
ended March 31, 1995 was $4.85 billion. Assets at March 31, 1995 were
$5.57 billion.
Ryder's stock is a component of the Dow Jones Transportation Average
and the Standard & Poor's 500 Index.
<PAGE>
RYDER SYSTEM, INC. AND CONSOLIDATED SUBSIDIARIES
REVENUE AND NET EARNINGS
Three months ended March 31, 1995 and 1994
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
1995 1994
------------- ---------
<S> <C> <C>
Revenue $ 1,233,481 1,071,837
============= =========
Earnings before cumulative effect of change
in accounting $ 26,579 23,738
Cumulative effect of change
in accounting (a) (7,759) -
------------- ---------
Net earnings $ 18,820 23,738
============= =========
Average common and common equivalent shares 78,992 78,444
============= =========
Earnings per common share:
Earnings before cumulative effect
of change in accounting $ 0.34 0.30
Cumulative effect of change
in accounting (a) (0.10) -
------------- ---------
Net earnings $ 0.24 0.30
============= =========
</TABLE>
REVENUE AND EARNINGS BEFORE TAXES
LINES OF BUSINESS
Three months ended March 31, 1995 and 1994
(In thousands)
<TABLE>
<CAPTION>
1995 1994
------------- ---------
<S> <C> <C>
Revenue:
Vehicle Leasing & Services $ 1,074,936 917,249
Automotive Carriers 164,997 158,506
Intersegment (6,452) (3,918)
------------- ---------
$ 1,233,481 1,071,837
============= =========
Earnings before income taxes:
Vehicle Leasing & Services $ 39,693 37,259
Automotive Carriers 9,525 8,180
Other (4,093) (5,109)
------------- ---------
$ 45,125 40,330
============= =========
<FN>
(a) Effective January 1, 1995, the company adopted Statement of Financial
Accounting Standards No. 116, "Accounting for Contributions Received
and Contributions Made," resulting in a charge of $7.8 million. The
cumulative effect reflects the after tax charge to establish a
liability for the present value of the company's total outstanding
charitable commitments as of January 1, 1995.
</FN>
</TABLE>
<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.
Dated: April 21, 1995
RYDER SYSTEM, INC.
By: /s/ Serge G. Martin
_______________________________
Name: Serge G. Martin
Title: Assistant General Counsel
and Assistant Secretary
