Ryder Completes Acquisition of General Car and Truck Leasing System
-- Updates 2004 Earnings Forecast --
MIAMI, Jan. 6 -- Ryder System, Inc. , a global leader in transportation and supply chain management solutions, today announced the completion of its previously announced acquisition of substantially all the assets of Iowa-based General Car and Truck Leasing System, a major privately held commercial truck leasing, maintenance and rental company that is no longer engaged in the car rental business. The acquisition was effective December 31, 2003.
The purchase price was approximately $105 million in cash, subject to post-closing adjustments. The acquisition is expected to add approximately $75 million in revenue (which includes $15 million in fuel revenue) and be accretive to earnings in 2004. Accordingly, Ryder has raised its full-year 2004 earnings forecast to the range of $2.40 to $2.50 per diluted share. In addition to increasing its 2004 earnings forecast, the Company anticipates further earnings improvement in future years resulting from synergies and operational improvements within the combined companies.
In the transaction, Ryder acquired General's fleet of over 4,200 vehicles, 15 of its 34 service locations and more than 700 customers. The combined network will operate under the Ryder name. The acquisition allows Ryder to leverage its existing U.S. infrastructure in key markets while adding new infrastructure to strengthen its presence in targeted areas of the Midwest and Southeast. Ryder is also in the process of hiring a number of former General employees to support the acquired business.
"We're pleased that the strong financial foundation that Ryder has established over the past few years has enabled us to acquire a company with such a solid track record of serving quality customers," said Ryder Chairman, President and Chief Executive Officer Gregory T. Swienton. "This acquisition strengthens our network and product offering in key markets, bringing more business resources and value to customers of both companies."
About Ryder
Ryder is a Fortune 500 company providing leading-edge transportation, logistics and supply chain management solutions worldwide. Ryder's stock is a component of the Dow Jones Transportation Average and the Standard & Poor's 500 Index. For more information about Ryder System, Inc., visit www.ryder.com.
Note Regarding Forward Looking Statements: Certain statements and information included in this presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995. Accordingly, we advise that these forward-looking statements be evaluated with consideration given to the many uncertainties inherent in our business that could cause actual results and events to differ materially from those in the forward-looking statements. Important factors that could cause such differences include, among others, the Company's ability to create and benefit from operating synergies and improvements, the competitive pricing environment applicable to the Company's businesses, customer retention levels, changes in customers' business environments, changes in market conditions affecting the sale of used vehicles, adverse changes in debt ratings, changes in accounting assumptions, greater than expected expenses associated with the Company's activities and changes in general economic conditions particularly in the Midwest and Southeast United States. The risks included here are not exhaustive. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors on the Company's business. Accordingly, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
For information contact: David Bruce 305-500-4999 David_Bruce@ryder.com Lisa Brumfield 305-500-3668 Lisa_Brumfield@ryder.com