Ryder System, Inc. (NYSE:R) Q2 2019 Earnings Conference Call Transcript
Jul 30, 2019 • 11:00 am ET
(Starts Abruptly) 2019 Earnings Release Conference Call. [Operator Instructions]
I would now like to introduce Mr. Bob Brunn, Vice President, Investor Relations, Corporate Strategy and Product Strategy for Ryder. Mr. Brunn, you may now begin, sir.
Robert S. Brunn
Thanks very much. Good morning, and welcome to Ryder's second quarter 2019 earnings conference call.
I'd like to remind you that during this presentation, you'll hear some forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive, market, political and regulatory factors. More detailed information about these factors is contained in this morning's earnings release and in Ryder's filings with the Securities and Exchange Commission.
This conference call also includes certain non-GAAP financial measures. You'll find reconciliations of each non-GAAP measure to the nearest GAAP measure in the written presentation accompanying this call, which is available on our website in investors.ryder.com.
Presenting on today's call are Robert Sanchez, Chairman and Chief Executive Officer and Scott Parker, Executive Vice President and Chief Financial Officer. Additionally, Dennis Cooke, President of Global Fleet Management Solutions; John Diez, President of Dedicated Transportation Solutions; and Steve Sensing, President of Global Supply Chain Solutions, are on the call today and available for questions following the presentation.
At this time, I'll turn the call over to Robert.
Robert E. Sanchez
Good Morning, everyone and thanks for joining us. This morning, we'll recap our second quarter 2019 results, discuss the current outlook for our business and highlight progress on some of our strategic initiatives, then we'll open the call for questions. With that, let's turn to an overview of our second quarter results.
Comparable earnings per share from continuing operations were $1.40 for the second quarter of 2019, down 4% from the prior year, primarily reflecting lower used vehicle results, partially offset by improved operating performance. Comparable results were slightly above the midpoint of our forecast range of $1.34 to $1.44, reflecting better-than-expected operating performance in our contractual businesses, largely offset by lower than expected demand conditions in used vehicle sales and rental that began late in the quarter.
Comparable pre-tax earnings were down 4%, reflecting depreciation headwinds of $8 million and higher valuation adjustments of $10 million related to lower used vehicle pricing. Sales activity remained solid and we delivered strong revenue growth in all segments, driven by secular outsourcing trends, as well as our sales and marketing initiatives. Operating revenue, which excludes fuel and subcontracted transportation, increased by 11% to a record $1.8 billion for the second quarter.
Page 5 includes additional financial information for the second quarter. Comparable EBITDA was $579 million, up 14% from the prior year, reflecting the earnings contribution from our growing portfolio of contractual lease, dedicated and supply chain business.
The average number of diluted shares outstanding for the quarter was 52.5 million, down slightly from the prior year. We began repurchasing shares