RYDER SYSTEM INC

Previous wording

•Diluted EPS from continuing operations of $2.83 in the second quarter of 2024 compared to $(0.39) in prior year, which reflected a non-cash FMS U.K. business exit charge

Current wording

•Diluted EPS from continuing operations of $3.25 in the third quarter of 2024 compared to $3.44 in prior year

Previous wording

•Comparable EPS (a non-GAAP measure) from continuing operations of $3.00 in the second quarter of 2024, as compared to $3.61 in prior year, reflecting weaker market conditions in rental and used vehicle sales, partially offset by higher results in contractual lease, supply chain and dedicated transportation businesses

Current wording

•Comparable EPS (a non-GAAP measure) from continuing operations of $3.44 in the third quarter of 2024, as compared to $3.58 in prior year, reflecting weaker market conditions in rental and used vehicle sales, partially offset by higher earnings in contractual lease, supply chain, and dedicated transportation businesses

Previous wording

•Total revenue of $3.2 billion in the second quarter of 2024, compared to $2.9 billion in prior year

Current wording

•Total revenue of $3.2 billion in the third quarter of 2024, compared to $2.9 billion in prior year

Previous wording

•Operating revenue (a non-GAAP measure) of $2.6 billion in the second quarter of 2024, up 10%, reflecting recent acquisitions

Current wording

•Operating revenue (a non-GAAP measure) of $2.6 billion in the third quarter of 2024, up 9%, reflecting recent acquisitions

Previous wording

•Net cash provided by operating activities from continuing operations of $1.1 billion and free cash flow (a non-GAAP measure) of $71 million in the six months ended June 30, 2024

Current wording

•Net cash provided by operating activities from continuing operations of $1.7 billion and free cash flow (a non-GAAP measure) of $218 million in the nine months ended September 30, 2024

Previous wording

During the three and six months ended June 30, 2024, market conditions for used vehicle sales and commercial rental remained weak. We also experienced a slowdown in sales activity across all business segments from the freight cycle and general economic uncertainty. We continue to benefit, though, from favorable long-term secular trends in logistics and transportation solutions, including supply chain disruptions. These secular trends provide long-term growth opportunities for our Supply Chain Solutions (SCS) and Dedicated Transportation Solutions (DTS) business segments.

Current wording

During the three and nine months ended September 30, 2024, market conditions for used vehicle sales and commercial rental remained weak. Although we are experiencing near-term sales headwinds that reflect the extended freight downturn and overall economic uncertainty, we continue to benefit from favorable long-term secular trends in logistics and transportation solutions. These secular trends provide long-term growth opportunities for our Supply Chain Solutions (SCS) and Dedicated Transportation Solutions (DTS) business segments.

Previous wording

In our Fleet Management Solutions (FMS) business, rental demand and used vehicle pricing declined from the prior year. We anticipate that market conditions, including a freight recessionary environment, will remain weak through most of 2024 for rental and used vehicle sales with gradual improvements expected later in the year. Our maintenance cost savings initiatives continue to benefit earnings, and our lease pricing initiatives are delivering improved portfolio returns. We expect to continue to realize incremental earnings benefits as our remaining portfolio is renewed at higher returns.

Current wording

In our Fleet Management Solutions (FMS) business, rental demand and used vehicle pricing declined from the prior year. We now anticipate that market conditions, including a freight recessionary environment, will remain weak through the end of 2024 for rental and used vehicle sales. Our maintenance cost savings initiatives continue to benefit earnings, and our lease pricing initiatives are delivering improved portfolio returns. We expect to continue to realize incremental earnings benefits as our remaining portfolio is renewed at higher returns.

Previous wording

In our SCS business, outsourcing trends in warehousing and distribution continue. The acquisition of IFS as well as brokerage and logistics business from the acquisition of Cardinal Logistics drove total SCS revenue and operating revenue (a non-GAAP measure) growth in the first half of 2024. The dedicated business from the Cardinal Logistics acquisition drove operating revenue growth in DTS, and we expect this acquisition to significantly benefit DTS revenue for the remainder of 2024.

Current wording

In our SCS business, the acquisition of IFS as well as brokerage and logistics business from the acquisition of Cardinal Logistics drove total SCS revenue and operating revenue (a non-GAAP measure) growth during the nine months ended September 30, 2024. The dedicated business from the Cardinal Logistics acquisition drove operating revenue growth in DTS during the nine months ended September 30, 2024, and we expect this acquisition to continue to significantly benefit DTS revenue for the remainder of 2024.

Previous wording

While we are experiencing positive momentum in our businesses, other unknown effects from inflationary cost pressures, labor interruptions, extended disruptions in vehicle and vehicle part production and the higher interest rate environment may negatively impact demand for our business, financial results and significant judgments and estimates.

Current wording

While we are experiencing positive momentum from long-term secular trends in our businesses, other unknown effects from inflationary cost pressures, labor interruptions, disruptions in vehicle and vehicle part production and the higher interest rate environment may negatively impact demand for our business, financial results and significant judgments and estimates.

Previous wording

Total revenue was$3.2 billion in the second quarter of 2024, ascompared to $2.9 billion in the prior year, and $6.3 billion in the six months ended June 30, 2024, as compared to $5.8 billion in the prior year, primarily reflecting higher operating revenue and higher subcontracted transportation. Operating revenue (a non-GAAP measure excluding fuel and subcontracted transportation) increased 10% in the second quarter of 2024 and 8% in thesix months ended June 30, 2024, reflecting recent acquisitions and contractual revenue growth in FMS and SCS, partially offset by lower commercial rental revenue in FMS.

Current wording

Total revenue was$3.2 billion in the third quarter of 2024, ascompared to $2.9 billion in the prior year, and $9.4 billion in the nine months ended September 30, 2024, as compared to $8.8 billion in the prior year, primarily reflecting higher operating revenue and higher subcontracted transportation. Operating revenue (a non-GAAP measure excluding fuel and subcontracted transportation) increased 9% in the third quarter of 2024 and 8% in thenine months ended September 30, 2024, reflecting recent acquisitions and contractual revenue growth in FMS and SCS, partially offset by lower commercial rental revenue in FMS.

Previous wording

EBT increased to$178 million and $292 millionin thesecond quarter andsix months ended June 30, 2024, respectively, largely reflecting a 2023 one-time, non-cash $188 million currency translation adjustment loss related to the FMS U.K. exit, partially offset by lower comparable EBT (a non-GAAP measure). Comparable EBT decreased 21% and 24% in thesecond quarter andsix months ended June 30, 2024, respectively, primarilydue to decreased commercial rental results and reduced gains on used vehicles sold in FMS, partially offset byhigher ChoiceLease results in FMS and SCS earnings.

Current wording

EBTdecreased to$188 millioninthe third quarter largely reflecting weaker rental demand and lower gains on used vehicle sales due to lower volumes and pricing in FMS. EBT increased to $480 million in the nine months ended September 30, 2024, due to a 2023 one-time, non-cash $188 million currency translation adjustment loss related to the FMS U.K. business exit, partially offset by lower comparable EBT (a non-GAAP measure). Comparable EBTdecreased 12% and 20% in thethird quarter andnine months ended September 30, 2024, respectively, primarily due to decreased commercial rental results and reduced gains on used vehicles sold in FMS, partially offset by higher ChoiceLease results in FMS as well as SCS and DTS earnings.

Previous wording

Services revenue represents all the revenue associated with our SCS and DTS business segments, including subcontracted transportation and fuel, as well as SelectCare and fleet support services associated with our FMS business segment. Services revenue increased 19% in the second quarter and 15% in the six months ended June 30, 2024, due to increases in DTS and SCS revenue primarily driven by recent acquisitions.

Current wording

Services revenue represents all the revenue associated with our SCS and DTS business segments, including subcontracted transportation and fuel, as well as SelectCare and fleet support services associated with our FMS business segment. Services revenue increased 17% in the third quarter and 16% in the nine months ended September 30, 2024, due to increases in DTS and SCS revenue primarily driven by recent acquisitions.

Previous wording

Cost of services represents the direct costs related to services revenue and is primarily comprised of salaries and employee-related costs, subcontracted transportation (purchased transportation from third parties), fuel, vehicle liability costs and maintenance costs. Cost of services increased 19% in thesecond quarter of 2024 reflecting higher revenue. Cost of services increased 14% for the six months ended June 30, 2024, reflecting higher revenue and a prior year, first quarter $30 million SCS asset impairment charge.

Current wording

Cost of services represents the direct costs related to services revenue and is primarily comprised of salaries and employee-related costs, subcontracted transportation (purchased transportation from third parties), fuel, vehicle liability costs and maintenance costs. Cost of services increased 16% in the third quarter of 2024 reflecting higher revenue. Cost of services increased 15% for the nine months ended September 30, 2024 reflecting higher revenue, partially offset by a $30 million SCS asset impairment charge in the prior year.

Previous wording

Services gross margin increased 18% in the second quarter and increased 27% for the six months ended June 30, 2024 reflecting increased pricing in SCS. Services gross margin for the six months ended June 30, 2024, also reflects the prior year SCS asset impairment charge.

Current wording

Services gross margin increased 17% in the third quarter and increased 23% for the nine months ended September 30, 2024 primarily driven by recent acquisitions in DTS and SCS. Services gross margin increase for the nine months ended September 30, 2024, also reflects an SCS asset impairment charge in the prior year.

Previous wording

Lease & related maintenance and rental revenue represent revenue from our ChoiceLease and commercial rental product offerings within our FMS business segment. Revenue decreased 3% in the second quarter and 4% in the six months ended June 30, 2024, reflecting lower rental demand partially offset by ChoiceLease growth.

Current wording

Lease & related maintenance and rental revenue represent revenue from our ChoiceLease and commercial rental product offerings within our FMS business segment. Revenue decreased 3% in the third quarter and nine months ended September 30, 2024, reflecting lower rental demand partially offset by ChoiceLease growth.

Previous wording

Cost of lease & related maintenance and rental represents the direct costs related to Lease & related maintenance and rental revenue and are comprised of depreciation of revenue earning equipment, maintenance costs (primarily repair parts and labor), and other costs such as licenses, insurance and operating taxes. Cost of lease & related maintenance and rental excludes interest costs from vehicle financing, which are reported within "Interest expense" in our Condensed Consolidated Statements of Earnings. Cost of lease & related maintenance and rental decreased 3% in the second quarter and 2% in the six months ended June 30, 2024, reflecting lower operating costs on a 12% smaller average commercial rental fleet, lower maintenance costs on a younger fleet and maintenance cost savings initiatives.

Current wording

Cost of lease & related maintenance and rental represents the direct costs related to Lease & related maintenance and rental revenue and are comprised of depreciation of revenue earning equipment, maintenance costs (primarily repair parts and labor), and other costs such as licenses, insurance and operating taxes. Cost of lease & related maintenance and rental excludes interest costs from vehicle financing, which are reported within "Interest expense" in our Condensed Consolidated Statements of Earnings. Cost of lease & related maintenance and rental decreased 3% in the third quarter and 2% in the nine months ended September 30, 2024, reflecting lower operating costs on a 10% smaller average commercial rental fleet, lower maintenance costs on a younger fleet and maintenance cost savings initiatives.

Previous wording

Lease & related maintenance and rental gross margin decreased in the second quarter and the six months ended June 30, 2024, primarily due to lower rental demand. Lease & related maintenance and rental gross margin percentage decreased in the six months ended June 30, 2024, primarily due to lower rental utilization.

Current wording

Lease & related maintenance and rental gross margin decreased in the third quarter and in the nine months ended September 30, 2024, primarily due to lower rental demand. Lease & related maintenance and rental gross margin percentage increased in the third quarter due to higher rate in Choicelease and decreased in the nine months ended September 30, 2024 primarily due to lower rental utilization.

Previous wording

Fuel services revenue represents fuel services provided to our FMS customers. Fuel services revenue decreased 8% in the second quarter and 13% in the six months ended June 30, 2024, reflecting fewer gallons sold. The decrease in the six months ended June 30, 2024, also reflects lower fuel prices passed through to customers.

Current wording

Fuel services revenue represents fuel services provided to our FMS customers. Fuel services revenue decreased 20% in the third quarter and 15% in the nine months ended September 30, 2024, primarily reflecting lower fuel prices passed through to customers.

Previous wording

Cost of fuel services includes the direct costs associated with providing our customers with fuel. These costs include fuel, salaries and employee-related costs of fuel island attendants, and depreciation of our fueling facilities and equipment. Cost of fuel services decreased 8% in the second quarter and 14% in the six months ended June 30, 2024, as a result of fewer gallons sold. The decrease in the six months ended June 30, 2024, also reflects lower fuel prices passed through to customers.

Current wording

Cost of fuel services includes the direct costs associated with providing our customers with fuel. These costs include fuel, salaries and employee-related costs of fuel island attendants, and depreciation of our fueling facilities and equipment. Cost of fuel services decreased 21% in the third quarter and 17% in the nine months ended September 30, 2024, as a result of lower market fuel prices.

Previous wording

Fuel services gross margin in the second quarter and the six months ended June 30, 2024, was consistent with the prior year. Fuel services gross margin as a percentage of revenue was in line with the prior year for the second quarter of 2024 and increased in the six months ended June 30, 2024. Fuel is largely a pass-through to customers for which we realize minimal changes in margin during periods of steady market fuel prices. However, fuel services margin is impacted by sudden increases or decreases in market fuel prices during a short period of time, as customer pricing for fuel is established based on current market fuel costs. Fuel services gross margin for the second quarter and six months ended June 30, 2024, was not significantly impacted by these price change dynamics as fuel prices fluctuated during the periods.

Current wording

Fuel services gross margin increased in the third quarter and the nine months ended September 30, 2024. Fuel services gross margin as a percentage of revenue increased compared to prior year for the third quarter and nine months ended September 30, 2024. Fuel is largely a pass-through to customers for which we realize minimal changes in margin during periods of steady market fuel prices. However, fuel services margin is impacted by sudden increases or decreases in market fuel prices during a short period of time, as customer pricing for fuel is established based on current market fuel costs. Fuel services gross margin for the third quarter and nine months ended September 30, 2024, was not significantly impacted by these price change dynamics as fuel prices fluctuated during the periods.

Previous wording

SG&A expenses increased 7% in the second quarter of 2024 and 6% in thesix months ended June 30, 2024. The increase in the second quarter and six months ended June 30, 2024, primarily reflects the impact from recent acquisitions partially offset by lower marketing costs due to strategic investments made in the prior year. SG&A expenses as a percentage of total revenue remained at 12% for the second quarter and for the six months ended June 30, 2024.

Current wording

SG&A expenses increased 6% in the third quarter of 2024 and 6% in the nine months ended September 30, 2024. The increase in the third quarter primarily reflects higher incentive-based compensation expenses and the increase in the nine months ended September 30, 2024 primarily reflects the impact from recent acquisitions, partially offset by lower advertising expense. SG&A expenses as a percentage of total revenue remained at 12% for the third quarter and for the nine months ended September 30, 2024.

Previous wording

Used vehicle sales, net includes gains or losses from sales of used vehicles, selling costs associated with used vehicles and write-downs of vehicles held for sale to fair market values (referred to as "valuation adjustments"). Used vehicle sales, net decreased in the second quarter and six months ended June 30, 2024, due to lower proceeds per unit on sales of used vehicles partially offset by higher volumes.

Current wording

Used vehicle sales, net includes gains or losses from sales of used vehicles, selling costs associated with used vehicles and write-downs of vehicles held for sale to fair market values (referred to as "valuation adjustments"). Used vehicle sales, net decreased in the third quarter due to lower proceeds per unit on sales of used vehicles and decreased in the nine months ended September 30, 2024, due to lower proceeds per unit on sales of used vehicles partially offset by higher volumes.

Previous wording

Average proceeds per unit decreased in the second quarter and for the six months ended June 30, 2024. The following table presents the average used vehicle pricing changes for North America compared to the prior year:

Current wording

Average proceeds per unit decreased in the third quarter and for the nine months ended September 30, 2024. The following table presents the average used vehicle pricing changes for North America compared to the prior year:

Previous wording

Interest expense increased 33% in the second quarter and 37% for the six months ended June 30, 2024, reflecting higher market interest rates on new debt issuances and refinancings, as well as increased debt borrowings to fund recent acquisitions and share repurchases.

Current wording

Interest expense increased 31% in the third quarter and 35% for the nine months ended September 30, 2024, reflecting higher market interest rates on new debt issuances and refinancings, as well as increased debt borrowings to fund recent acquisitions and share repurchases.

Previous wording

Miscellaneous income, net consists of investment income, interest income, gains on sales of operating property, foreign currency transaction remeasurement and other non-operating items. Miscellaneous income, net decreased to $4 million in the second quarter of 2024, primarily due to lower gains on sales of properties as well as lower investment income. Miscellaneous income, net decreased to $19 million for the six months ended June 30, 2024, due to lower gains on sales of properties.

Current wording

Miscellaneous income, net consists of investment income, interest income, gains on sales of operating property, foreign currency transaction remeasurement and other non-operating items. Miscellaneous income, net increased to $10 million in the third quarter of 2024, primarily due to higher investment income offset by lower gains on sales of properties. Miscellaneous income, net decreased to $29 million for the nine months ended September 30, 2024, due to lower gains on sales of properties, offset by higher investment income.

Previous wording

Our effective tax rate on continuing operations was 29.1% in the second quarter of 2024, compared to 140.8% in the prior year, and 27.7% for the six months ended June 30, 2024, compared to 50.0% in the prior year. The higher effective tax rate in the prior year is primarily due to the second quarter 2023 one-time, nondeductible cumulative currency translation adjustment loss from the FMS U.K. business exit. Our comparable tax rate, which excludes the impact of the prior year currency translation adjustment loss, was 29.0% in the second quarter of 2024, and 27.4% for the six months ended June 30, 2024, consistent with the respective prior year periods.

Current wording

Our effective tax rate on continuing operations was 24.0% in the third quarter of 2024, compared to 25.2% in the prior year, and 26.2% for the nine months ended September 30, 2024, compared to 38.5% in the prior year. The higher effective tax rate in the nine months ended September 30, 2023 is primarily due to the second quarter 2023 one-time, nondeductible cumulative currency translation adjustment loss from the FMS U.K. business exit. Our comparable tax rate, which excludes the impact of the prior year currency translation adjustment loss, was lower at 23.9% in the third quarter of 2024 compared to 27.0% in the prior year, and 26.1% for the nine months ended September 30, 2024, compared to 27.2% in the prior year. The decrease in the comparable tax rate was due to discrete tax benefits during the third quarter of 2024.

Previous wording

Our FMS segment leases revenue earning equipment and provides rental vehicles, fuel, maintenance and other ancillary services to the SCS and DTS segments. Inter-segment EBT allocated to SCS and DTS includes earnings related to equipment used in providing services to SCS and DTS customers. EBT related to inter-segment equipment and services billed to SCS and

Current wording

Our FMS segment leases revenue earning equipment and provides rental vehicles, fuel, maintenance and other ancillary services to the SCS and DTS segments. Inter-segment EBT allocated to SCS and DTS includes earnings related to equipment used in providing services to SCS and DTS customers. EBT related to inter-segment equipment and services billed to SCS and DTS customers (equipment contribution) are included in both FMS and the segment that served the customer and then eliminated upon consolidation (presented as "Eliminations").

Previous wording

Vehicles acquired from Cardinal Logistics are included in FMS revenue earning equipment. Our FMS segment leases these vehicles and also provides maintenance services to our DTS segment. EBT related to inter-segment equipment and services on these acquired vehicles billed to DTS drove the increase in DTS equipment contribution in the second quarter and six months ended June 30, 2024.

Current wording

Vehicles acquired from Cardinal Logistics are included in FMS revenue earning equipment. Our FMS segment leases these vehicles and also provides maintenance services to our DTS segment. EBT related to inter-segment equipment and services on these acquired vehicles billed to DTS drove the increase in DTS equipment contribution in the third quarter and nine months ended September 30, 2024.

Previous wording

(1)For the three months ended June 30, 2024 and 2023, rental revenue from lease customers in place of a lease vehicle represented 30% and 35% of commercial rental revenue, respectively. For the six months ended June 30, 2024 and 2023, rental revenue from lease customers in place of a lease vehicle represented 33% and 36% of commercial rental revenue, respectively.

Current wording

(1)For the three months ended September 30, 2024 and 2023, rental revenue from lease customers in place of a lease vehicle represented 30% and 34% of commercial rental revenue, respectively. For the nine months ended September 30, 2024 and 2023, rental revenue from lease customers in place of a lease vehicle represented 32% and 35% of commercial rental revenue, respectively.

Previous wording

FMS total revenue increased 1%in the second quarter of 2024 due to higher operating revenue (a non-GAAP measure excluding fuel services revenue). FMS total revenue decreased 1% in the six months ended June 30, 2024, due to lower fuel services revenue passed through to customers partially offset by higher operating revenue. FMS operating revenue increased 2% in the second quarter of 2024 and remained consistent inthesix months ended June 30, 2024, due to higher ChoiceLease revenue, including the inter-segment lease revenue with DTS from the Cardinal Logistics acquisition. The increase in FMS operating revenue in both periods was partially offset by lower rental demand.

Current wording

FMS total revenue decreased 1%in the third quarter and in the nine months ended September 30, 2024 due to lower fuel services revenue passed through to customers partially offset by higher operating revenue (a non-GAAP measure excluding fuel services revenue). FMS operating revenue increased 1% in the third quarter and inthe nine months ended September 30, 2024, due to higher ChoiceLease revenue, including the inter-segment lease revenue with DTS from the Cardinal Logistics acquisition. The increase in FMS operating revenue in both periods was partially offset by lower rental demand.

Previous wording

FMS EBT decreased 26% in the second quarter and 35% in the six months ended June 30, 2024, reflecting lower gains on used vehicle sales compared to elevated levels in the prior year and lower commercial rental results, partially offset by higher ChoiceLease performance and benefits from maintenance cost savings initiatives. Lower gains on used vehicle sales reflect a 27% and 19% decrease in used truck and tractor pricing, respectively, in the second quarter of 2024 and a 28% and 27% decrease in used truck and tractor pricing, respectively, in the six months ended June 30, 2024. Rental power fleet utilization decreased to 69% in the second quarter and 68% in the six months ended June 30, 2024, as compared to 75% in both the second quarter and the six months ended June 30, 2023. The average power fleet was 11% smaller in the second quarter of 2024 and 12% smaller in the six months ended June 30, 2024.

Current wording

FMS EBT decreased 22% in the third quarter and 31% in the nine months ended September 30, 2024, reflecting weaker rental demand and lower gains on used vehicle sales due to lower volumes and pricing, partially offset by higher ChoiceLease performance and benefits from maintenance cost savings initiatives. Lower gains on used vehicle sales reflect a 19% and 22% decrease in used truck and tractor pricing, respectively, in the third quarter of 2024 and a 25% and 25% decrease in used truck and tractor pricing, respectively, in the nine months ended September 30, 2024. Rental power fleet utilization decreased to 71% in the third quarter and 69% in the nine months ended September 30, 2024, as compared to 75% in both the third quarter and the nine months ended September 30, 2023. The average power fleet was 7% smaller in the third quarter of 2024 and 11% smaller in the nine months ended September 30, 2024.

Previous wording

SCS total revenue increased 14% in the second quarter of 2024 and 11% in the six months ended June 30, 2024, primarily as a result of higher operating revenue (a non-GAAP measure excluding fuel and subcontracted transportation) and higher subcontracted transportation costs passed through to customers. SCS operating revenue increased 14% in the second quarter of 2024 and 12% for the six months ended June 30, 2024, driven primarily by recent acquisitions. SCS operating revenue in the second quarter of 2024 also benefited from organic growth across all industry verticals.

Current wording

SCS total revenue increased 10% in the third quarter of 2024 and 11% in the nine months ended September 30, 2024, primarily as a result of higher operating revenue (a non-GAAP measure excluding fuel and subcontracted transportation). SCS operating revenue increased 10% in the third quarter of 2024 and 11% for the nine months ended September 30, 2024, driven primarily by recent acquisitions. SCS operating revenue in the nine months ended September 30, 2024 also benefited from organic growth across industry verticals.

Previous wording

SCS EBT increased 13% in the second quarter of 2024 and 61% in the six months ended June 30, 2024, primarily reflecting stronger automotive performance. For the six months ended June 30, 2024, SCS EBT also increased due to a prior year $30 million asset impairment charge.

Current wording

SCS EBT increased 14% in the third quarter of 2024 primarily reflecting stronger omnichannel retail performance and lower overhead spending. SCS EBT increased 39% in the nine months ended September 30, 2024, primarily reflecting a prior year $30 million asset impairment charge, stronger automotive performance and lower overhead spending.

Previous wording

DTS total revenue increased 44% in the second quarter of 2024 and 34% for the six months ended June 30, 2024, primarily due to higher operating revenue (a non-GAAP measure excluding fuel and subcontracted transportation). DTS operating revenue increased 48% in the second quarter of 2024 and 40% in the six months ended June 30, 2024, due to the Cardinal Logistics acquisition.

Current wording

DTS total revenue increased 41% in the third quarter of 2024 and 36% for the nine months ended September 30, 2024, primarily due to higher operating revenue (a non-GAAP measure excluding fuel and subcontracted transportation). DTS operating revenue increased 49% in the third quarter of 2024 and 43% in the nine months ended September 30, 2024, due to the Cardinal Logistics acquisition.

Previous wording

DTS EBT increased 10% in the second quarter of 2024, due to improved operating performance partially offset by Cardinal Logistics' acquisition integration and other related costs. DTS EBT decreased 12% for the six months ended June 30, 2024, primarily due to Cardinal Logistics' acquisition integration and other related costs.

Current wording

DTS EBT increased 31% in the third quarter of 2024, due to improved operating performance and the Cardinal Logistics' acquisition. DTS EBT increased 1% for the nine months ended September 30, 2024, due to improved operating performance partially offset by the Cardinal Logistics' acquisition integration and other related costs.

Previous wording

Net cash provided by operating activities from continuing operations were $1.1 billion for the six months ended June 30, 2024, compared to $1.2 billion in the prior year period, primarily reflecting higher working capital needs. Net cash used in investing activities from continuing operations increased to $1.3 billion for the six months ended June 30, 2024, compared with $1.2 billion in 2023, reflecting the acquisition of Cardinal Logistics and decreased cash proceeds from sales of used vehicles and property, partially offset by lower cash paid for capital expenditures. Net cash provided by financing activities from continuing operations increased to $194 million for the six months ended June 30, 2024, compared with cash used of $57 million in 2023, primarily reflecting higher borrowing needs.

Current wording

Net cash provided by operating activities from continuing operations were $1.7 billion for the nine months ended September 30, 2024, compared to $1.8 billion in the prior year period, primarily reflecting higher working capital needs, including a $50 million prefunding of future required pension contribution. Net cash used in investing activities from continuing operations was $1.8 billion for the nine months ended September 30, 2024, consistent with 2023, reflecting the acquisition of Cardinal Logistics and decreased cash proceeds from sales of used vehicles and property, partially offset by lower cash paid for capital expenditures. Net cash provided by financing activities from continuing operations increased to $65 million for the nine months ended September 30, 2024, compared with cash used of $126 million in 2023, primarily reflecting higher borrowing needs.

Previous wording

Free cash flow (a non-GAAP measure) increased to $71 million for the six months ended June 30, 2024, compared to $16 million in 2023, reflecting reduced capital expenditures partially offset by lower cash from operating activities and proceeds from sales of used vehicles and property.

Current wording

Free cash flow (a non-GAAP measure) increased to $218 million for the nine months ended September 30, 2024, compared to $32 million in 2023, reflecting reduced capital expenditures partially offset by lower cash from operating activities and proceeds from sales of used vehicles and property.

Previous wording

Gross capital expenditures decreased to $1.3 billion for the six months ended June 30, 2024, compared to $1.8 billion in 2023, primarily reflecting reduced investments in the ChoiceLease fleet due to lower sales activity.

Current wording

Gross capital expenditures decreased to $2.0 billion for the nine months ended September 30, 2024, compared to $2.6 billion in 2023, primarily reflecting reduced investments in the ChoiceLease fleet due to lower sales activity.

Previous wording

Cash and cash equivalents totaled $164 million as of June 30, 2024. As of June 30, 2024, $80 million was held outside the U.S. and is available to fund operations. Our intention is to permanently reinvest the earnings of our foreign subsidiaries, with the exception of our non-operating U.K. subsidiary where the assertion was removed in 2021. Federal, state and foreign income taxes, withholding taxes and the tax impact of foreign currency exchange gains or losses were considered on the remaining U.K. undistributed earnings as of June 30, 2024, and there was no impact to deferred taxes.

Current wording

Cash and cash equivalents totaled $162 million as of September 30, 2024. As of September 30, 2024, $98 million was held outside the U.S. and is available to fund operations. Our intention is to permanently reinvest the earnings of our foreign subsidiaries, with the exception of our non-operating U.K. subsidiary where the assertion was removed in 2021. Federal, state and foreign income taxes, withholding taxes and the tax impact of foreign currency exchange gains or losses were considered on the remaining U.K. undistributed earnings as of September 30, 2024, and there was no impact to deferred taxes.

Previous wording

In February 2024, we issued two tranches of unsecured medium-term notes with aggregate principal amounts of $350 million and $550 million, bearing annual interest of 5.30% and 5.38%, respectively, and maturing on March 15, 2027 and March 15, 2029, respectively. In May 2024, we issued an unsecured medium-term note with aggregate principal amount of $300 million, bearing annual interest of 5.50%, and maturing on June 1, 2029.

Current wording

In February 2024, we issued two tranches of unsecured medium-term notes with aggregate principal amounts of $350 million and $550 million, bearing annual interest of 5.30% and 5.38%, respectively, and maturing on March 15, 2027 and March 15, 2029, respectively. In May 2024, we issued an unsecured medium-term note with aggregate principal amount of $300 million, bearing annual interest of 5.50%, and maturing on June 1, 2029. In August 2024, we issued an unsecured medium-term note with aggregate principal amount of $300 million, bearing annual interest of 4.95%, and maturing on September 1, 2029.