2023 Q1 Form 10-K Financial Statement

#000008596123000031 Filed on February 15, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $2.952B $3.088B $12.01B
YoY Change 3.44% 18.77% 24.3%
Cost Of Revenue $1.756B $1.795B $6.847B
YoY Change 9.45% 31.06% 37.91%
Gross Profit $1.196B $1.293B $5.164B
YoY Change -4.28% 5.09% 9.92%
Gross Profit Margin 40.51% 41.89% 42.99%
Selling, General & Admin $363.0M $1.059B $1.415B
YoY Change 19.72% 3.8% 34.18%
% of Gross Profit 30.35% 81.87% 27.4%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $445.0M $437.7M $1.713B
YoY Change 3.55% 0.16% -4.1%
% of Gross Profit 37.21% 33.84% 33.17%
Operating Expenses $363.0M $1.055B $1.415B
YoY Change 19.72% 1.27% 34.18%
Operating Profit $833.0M $238.7M $3.749B
YoY Change -11.97% 26.17% 2.9%
Interest Expense $65.00M -$62.51M $228.0M
YoY Change 24.13% 21.9% 6.6%
% of Operating Profit 7.8% -26.19% 6.08%
Other Income/Expense, Net $20.00M $32.00M
YoY Change -5447.59% -51.49%
Pretax Income $201.0M $291.6M $1.216B
YoY Change -20.2% 23.75% 75.56%
Income Tax $61.00M $91.14M $353.0M
% Of Pretax Income 30.35% 31.26% 29.03%
Net Earnings $139.0M $204.5M $867.0M
YoY Change -20.84% 12.92% 67.04%
Net Earnings / Revenue 4.71% 6.62% 7.22%
Basic Earnings Per Share $2.99 $17.41
Diluted Earnings Per Share $2.94 $4.11 $17.04
COMMON SHARES
Basic Shares Outstanding 46.29M shares 49.55M shares
Diluted Shares Outstanding 47.47M shares 50.89M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $253.0M $267.0M $267.0M
YoY Change 14.02% 14.12% 14.12%
Cash & Equivalents $253.0M $267.0M $267.0M
Short-Term Investments
Other Short-Term Assets $251.0M $245.0M $245.0M
YoY Change 17.96% -64.66% -64.66%
Inventory $74.00M $78.00M $78.00M
Prepaid Expenses
Receivables $1.682B $1.610B $1.610B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $2.260B $2.200B $2.200B
YoY Change 7.0% -10.59% -10.59%
LONG-TERM ASSETS
Property, Plant & Equipment $1.093B $10.05B $10.05B
YoY Change 4.5% 920.63% 4.19%
Goodwill $861.0M $861.0M
YoY Change 1.92% 50.81%
Intangibles $288.0M $295.0M
YoY Change -10.59% 73.32%
Long-Term Investments
YoY Change
Other Assets $1.115B $986.0M $986.0M
YoY Change -12.63% -25.56% 0.26%
Total Long-Term Assets $12.28B $12.20B $12.20B
YoY Change 1.31% 7.22% 7.22%
TOTAL ASSETS
Total Short-Term Assets $2.260B $2.200B $2.200B
Total Long-Term Assets $12.28B $12.20B $12.20B
Total Assets $14.54B $14.40B $14.40B
YoY Change 2.15% 4.05% 4.05%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $980.0M $767.0M $767.0M
YoY Change 12.99% 2.55% 2.55%
Accrued Expenses $652.0M $754.0M $754.0M
YoY Change -1.92% 19.71% 19.71%
Deferred Revenue $184.0M $178.0M
YoY Change 1.48% -2.62%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $1.674B $1.349B $1.349B
YoY Change 7.31% 1.17% 1.17%
Total Short-Term Liabilities $3.755B $3.316B $3.316B
YoY Change 5.62% 3.6% 3.6%
LONG-TERM LIABILITIES
Long-Term Debt $4.666B $5.003B $5.003B
YoY Change -10.63% -4.64% -4.64%
Other Long-Term Liabilities $1.507B $1.568B $1.568B
YoY Change 4.89% 19.29% 19.29%
Total Long-Term Liabilities $1.507B $1.568B $6.571B
YoY Change 4.89% 19.29% 0.16%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.755B $3.316B $3.316B
Total Long-Term Liabilities $1.507B $1.568B $6.571B
Total Liabilities $11.54B $11.46B $11.46B
YoY Change -0.43% 3.82% 3.82%
SHAREHOLDERS EQUITY
Retained Earnings $2.596B $2.518B
YoY Change 19.6% 11.12%
Common Stock $1.191B $1.215B
YoY Change 2.7% -0.51%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.005B $2.937B $2.937B
YoY Change
Total Liabilities & Shareholders Equity $14.54B $14.40B $14.40B
YoY Change 2.15% 4.05% 4.05%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income $139.0M $204.5M $867.0M
YoY Change -20.84% 12.92% 67.04%
Depreciation, Depletion And Amortization $445.0M $437.7M $1.713B
YoY Change 3.55% 0.16% -4.1%
Cash From Operating Activities $478.0M $523.8M $2.310B
YoY Change 2.64% 6.67% 6.19%
INVESTING ACTIVITIES
Capital Expenditures $641.0M $714.3M $2.631B
YoY Change -209.71% -239.04% -235.52%
Acquisitions $0.00 $458.0M
YoY Change -100.0% 40.87%
Other Investing Activities $264.0M $215.5M -$4.000M
YoY Change 168052.87% -386.95% -180.37%
Cash From Investing Activities -$377.0M -$498.8M -$1.850B
YoY Change -51.89% -15.3% 27.61%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $557.0M
YoY Change 890.8%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$126.0M -260.6M -$861.0M
YoY Change -2.83% -146.18% 322.66%
NET CHANGE
Cash From Operating Activities $478.0M 523.8M $2.310B
Cash From Investing Activities -$377.0M -498.8M -$1.850B
Cash From Financing Activities -$126.0M -260.6M -$861.0M
Net Change In Cash -$14.00M -235.5M -$405.0M
YoY Change -96.9% -150.48% -177.58%
FREE CASH FLOW
Cash From Operating Activities $478.0M $523.8M $2.310B
Capital Expenditures $641.0M $714.3M $2.631B
Free Cash Flow -$163.0M -$190.5M -$321.0M
YoY Change -115.52% -118.95% -107.8%

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CONTINGENCIES AND OTHER MATTERS<div style="text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We are a party to various claims, complaints and proceedings arising in the ordinary course of our continuing business operations including those relating to commercial and employment claims, environmental matters, risk management matters (e.g., vehicle liability, workers’ compensation, etc.), and administrative assessments primarily associated with operating taxes. We have established loss provisions for matters in which losses are probable and can be reasonably estimated. We believe that the resolution of these claims, complaints and legal proceedings will not have a material effect on our consolidated financial statements. </span></div><div style="text-indent:24.75pt"><span><br/></span></div><div style="text-indent:24.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our estimates regarding potential losses and materiality are based on our judgment and assessment of the claims utilizing currently available information. Although we will continue to reassess our estimated liability based on future developments, our objective assessment of the legal merits of such claims may not always be predictive of the outcome and actual results may vary from our current estimates. In 2020, we recorded a loss of $8 million related primarily to adverse developments in several cases related to payments for transportation services in Brazil. In December 2022, we had a favorable development in one of these cases and recorded a $6 million benefit. These items were recorded within "Gain (loss) from discontinued operations, net of tax," in the Consolidated Statement of Earnings.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Securities Litigation Relating to Residual Value Estimates</span></div><div><span><br/></span></div><div style="text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On May 20, 2020, a putative class action on behalf of purchasers of our securities who purchased or otherwise acquired their securities between July 23, 2015 and February 13, 2020, inclusive (Class Period), was commenced against Ryder and certain of our current and former officers in the U.S. District Court for the Southern District of Florida (the "Securities Class Action"). The complaint alleges, among other things, that the defendants misrepresented Ryder’s depreciation policy and residual value estimates for its vehicles during the Class Period in violation of Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, and seeks to recover, among other things, unspecified compensatory damages and attorneys' fees and costs. On August 3, 2020, the State of Alaska, Alaska Permanent Fund, the City of Fort Lauderdale General Employees’ Retirement System, and the City of Plantation Police Officers Pension Fund were appointed lead plaintiffs. On October 5, 2020, the lead plaintiffs filed an amended complaint. On December 4, 2020, Ryder and the other named defendants in the case filed a Motion to Dismiss the amended complaint. On May 12, 2022, the court denied the defendants' motion to dismiss. The court entered a case management schedule on June 27, 2022, which, among other things, provides that discovery shall be completed by October 2023 and the commencement of trial in June 2024. </span></div><div style="text-indent:13.5pt"><span><br/></span></div><div style="text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">As previously disclosed, between June 2020 and February 2, 2021, five shareholder derivative complaints were filed purportedly on behalf of Ryder against us as nominal defendant and certain of our current and former officers and our current directors. The complaints are generally based on allegations set forth in the Securities Class Action complaint and allege breach </span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">of fiduciary duties, unjust enrichment, and waste of corporate assets. The plaintiffs, on our behalf, are seeking an award of monetary damages and restitution to us, improvements in our corporate governance and internal procedures, and legal fees. Three of these derivative complaints were filed in the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida, which were then consolidated into a single action (the "State Action"). Two of the complaints were filed in U.S. District Court for the Southern District of Florida (the "Federal Actions", and together with the State Action, the "Derivative Cases"). All of the Derivative Cases were stayed (stopped) pending the resolution of the motion to dismiss the Securities Class Action described in the paragraph above. On July 18, 2022, the Federal Actions were further stayed pending the final resolution of the State Action. On July 26, 2022, the State Action was further stayed until the conclusion of summary judgment proceedings in the Securities Class Action (except that certain discovery would be permitted).</span></div><div style="text-indent:13.5pt"><span><br/></span></div><div style="text-indent:22.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We believe the claims asserted in the complaints are without merit and intend to defend against them vigorously.</span></div>
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