2023 Q2 Form 10-Q Financial Statement

#000008596123000147 Filed on July 26, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2022 Q2
Revenue $2.884B $3.034B
YoY Change -4.93% 27.35%
Cost Of Revenue $1.633B $1.723B
YoY Change -5.2% 43.41%
Gross Profit $1.251B $1.311B
YoY Change -4.58% 11.0%
Gross Profit Margin 43.38% 43.22%
Selling, General & Admin $1.004B $360.7M
YoY Change 178.36% 19.14%
% of Gross Profit 80.26% 27.51%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $412.0M $424.5M
YoY Change -2.94% -4.44%
% of Gross Profit 32.93% 32.38%
Operating Expenses $1.007B $360.7M
YoY Change 179.19% 19.14%
Operating Profit $244.0M $950.3M
YoY Change -74.32% 8.2%
Interest Expense -$260.0M $55.32M
YoY Change -569.96% 2.16%
% of Operating Profit -106.56% 5.82%
Other Income/Expense, Net $11.00M $14.58M
YoY Change -24.53% -66.73%
Pretax Income $44.00M $338.4M
YoY Change -87.0% 66.22%
Income Tax $62.00M $98.03M
% Of Pretax Income 140.91% 28.97%
Net Earnings -$18.00M $239.4M
YoY Change -107.52% 60.56%
Net Earnings / Revenue -0.62% 7.89%
Basic Earnings Per Share -$0.40 $4.78
Diluted Earnings Per Share -$0.39 $4.70
COMMON SHARES
Basic Shares Outstanding 45.98M shares 49.85M shares
Diluted Shares Outstanding 45.98M shares 50.93M shares

Balance Sheet

Concept 2023 Q2 2022 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $218.0M $447.7M
YoY Change -51.31% 67.07%
Cash & Equivalents $218.0M $447.7M
Short-Term Investments
Other Short-Term Assets $253.0M $194.6M
YoY Change 30.03% 22.17%
Inventory $74.00M $82.10M
Prepaid Expenses
Receivables $1.572B $1.693B
Other Receivables $0.00 $0.00
Total Short-Term Assets $2.117B $2.417B
YoY Change -12.42% 35.13%
LONG-TERM ASSETS
Property, Plant & Equipment $10.69B $1.070B
YoY Change 899.32% 14.74%
Goodwill $861.0M $854.2M
YoY Change 0.8% 79.62%
Intangibles $281.0M $310.7M
YoY Change -9.57% 680.49%
Long-Term Investments
YoY Change
Other Assets $1.019B $1.263B
YoY Change -19.31% 11.25%
Total Long-Term Assets $12.85B $12.06B
YoY Change 6.6% 8.5%
TOTAL ASSETS
Total Short-Term Assets $2.117B $2.417B
Total Long-Term Assets $12.85B $12.06B
Total Assets $14.97B $14.48B
YoY Change 3.42% 12.19%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $934.0M $966.6M
YoY Change -3.37% 43.71%
Accrued Expenses $698.0M $741.2M
YoY Change -5.83% 54.63%
Deferred Revenue $198.0M $182.6M
YoY Change 8.45% -2.61%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $1.330B $1.415B
YoY Change -5.99% 3.82%
Total Short-Term Liabilities $3.411B $3.588B
YoY Change -4.93% 17.4%
LONG-TERM LIABILITIES
Long-Term Debt $5.195B $5.179B
YoY Change 0.32% 6.27%
Other Long-Term Liabilities $1.604B $1.437B
YoY Change 11.59% 4.84%
Total Long-Term Liabilities $6.799B $1.437B
YoY Change 372.99% 4.84%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.411B $3.588B
Total Long-Term Liabilities $6.799B $1.437B
Total Liabilities $11.88B $11.64B
YoY Change 1.99% 11.05%
SHAREHOLDERS EQUITY
Retained Earnings $2.489B $2.380B
YoY Change 4.59% 18.06%
Common Stock $1.177B $1.174B
YoY Change 0.22% -1.32%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.096B $2.833B
YoY Change
Total Liabilities & Shareholders Equity $14.97B $14.48B
YoY Change 3.42% 12.19%

Cashflow Statement

Concept 2023 Q2 2022 Q2
OPERATING ACTIVITIES
Net Income -$18.00M $239.4M
YoY Change -107.52% 60.56%
Depreciation, Depletion And Amortization $412.0M $424.5M
YoY Change -2.94% -4.44%
Cash From Operating Activities $743.0M $636.6M
YoY Change 16.71% -4.38%
INVESTING ACTIVITIES
Capital Expenditures $1.011B -$610.7M
YoY Change -265.54% 16.71%
Acquisitions
YoY Change
Other Investing Activities $181.0M $412.0M
YoY Change -56.06% 90.81%
Cash From Investing Activities -$830.0M -$198.8M
YoY Change 317.56% -35.34%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$83.00M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 69.00M -200.4M
YoY Change -134.44% 10.77%
NET CHANGE
Cash From Operating Activities 743.0M 636.6M
Cash From Investing Activities -830.0M -198.8M
Cash From Financing Activities 69.00M -200.4M
Net Change In Cash -18.00M 237.5M
YoY Change -107.58% 33.82%
FREE CASH FLOW
Cash From Operating Activities $743.0M $636.6M
Capital Expenditures $1.011B -$610.7M
Free Cash Flow -$268.0M $1.247B
YoY Change -121.49% 4.9%

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<span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">CONTINGENCIES AND OTHER MATTERS</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span><div style="text-indent:13.5pt"><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 Condensed Consolidated Financial Statements. </span></div><div style="text-indent:13.5pt"><span><br/></span></div><div style="text-indent:13.5pt"><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. </span></div><div style="margin-top:3pt;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:700;line-height:120%">Securities Litigation Relating to Residual Value Estimates </span></div><div style="margin-top:3pt;text-indent:13.5pt"><span><br/></span></div><div style="text-indent:13.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">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 </span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">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 trial shall commence in June 2024. On April 18, 2023, the parties reached an agreement in principle to resolve the Securities Class Action. On May 19, 2023, plaintiffs filed an unopposed Motion for Preliminary Approval of the settlement, and the parties filed corresponding settlement documentation, which are pending court approval. We expect that the settlement amount will be covered by insurance, and accordingly is not material to our financial position or results of operations.</span></div><div style="text-indent:13.5pt"><span><br/></span></div><div style="text-indent:13.5pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">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 derivative complaints are generally based on the allegations set forth in the Securities Class Action and allege breach of fiduciary duties, unjust enrichment, and waste of corporate assets. The derivative plaintiffs, on our behalf, seek 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, and were then consolidated into a single action (the "State Action"). Two of the derivative 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). We continue to believe that the claims asserted in the complaints are without merit and intend to defend against them vigorously.</span></div>
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