Good morning and welcome to Ryder System Incorporated's Third Quarter 2015 Earnings Release Conference Call. All lines are in a listen-only mode until after the presentation. Today's call is being recorded. If you have any objections, you may disconnect at this time. I would like to introduce Mr. Bob Brunn, Vice President, Corporate Strategy and Investor Relations for Ryder. Mr. Brunn, you may begin. Robert S. Brunn - VP-Investor Relations & Corporate Strategy: Thanks very much. Good morning, and welcome to Ryder's third quarter 2015 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. Presenting on today's call are Robert Sanchez, Chairman and Chief Executive Officer and Art Garcia, 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. With that, let me turn it over to Robert. Robert E. Sanchez - Chairman & Chief Executive Officer: Good morning, everyone, and thanks for joining us. This morning, we'll recap our third quarter 2015 results, review the asset management area and discuss the current outlook for our business. Then we'll open the call for questions. With that, let's turn to an overview of our third quarter results.…

Thank you, speaker. The first question for today is from Mr. David Ross from Stifel, Nicolaus. Sir, your line is open. David G. Ross - Stifel, Nicolaus & Co., Inc.: Yes. Good morning, everyone. Robert E. Sanchez - Chairman & Chief Executive Officer: Good morning, David. David G. Ross - Stifel, Nicolaus & Co., Inc.: Just, I guess, to talk about Fleet Management Solutions a bit. The average age of your lease fleet, is that still declining, or is that kind of bottomed out in the 40-plus month range? Robert E. Sanchez - Chairman & Chief Executive Officer: Yeah, actually, it's declined one month this quarter. So, we are down about 38 months, I think now. I think, the key point though as we've been saying for the last few quarters is that the benefit related to maintenance cost from the decline is really subsided. We're kind of at a point where you're not getting that benefit that we had seen; we were back in the 54 months down to 38 months. So, it has declined, but that's basically because of the growth. We are about 38 months. David G. Ross - Stifel, Nicolaus & Co., Inc.: And then when you talk about miles per vehicle per day driven, the lease fleet down about 1% year-over-year, is that kind of reflective of what you're seeing in the overall economy or with your customers in terms of general growth out there is non-existent or flat, sluggish, slightly down? And then you guys are just growing through that? Is there something else going on with the decline in the utilization of the lease fleet?

Hey, David. It's Dennis. No, I would say, just it's in the normal range. I wouldn't correlate it to anything in the economy. David G. Ross - Stifel, Nicolaus & Co., Inc.: And then when you look at the Dedicated side, you mentioned that the self-insurance issues should go away. I guess those were some bad accidents that hit your deductible level. Where do you expect them to get – I mean, they would have been 8% in the quarter, absent those SIR (25:19) issues. So next year, are we looking at kind of an 8%-plus dedicated margin, is that reasonable rate off of growth?

Hey, David. It's John. With regards to our long-term targets, I think they still remain the same. We're looking at that 8% to 9% range long-term. But to your point, I think in the near-term, you will see some improvement once we get past these insurance headwinds we've had the last two quarters. Robert E. Sanchez - Chairman & Chief Executive Officer: And David, I'd also – but it's not just accidents in the period, it's also development of past claims year-over-year since we're self-insured. So, that's actually been probably the lion's share's of it. David G. Ross - Stifel, Nicolaus & Co., Inc.: Okay, excellent. Thank you. Robert E. Sanchez - Chairman & Chief Executive Officer: Thanks, David.

Thank you, speaker. The next question comes from Mr. John Mims with FBR Capital Markets. Sir, your line is now open. John R. Mims - FBR Capital Markets & Co.: Great. Thank you. Thanks for taking my questions. So, Robert, let me ask you first on the maintenance side. And I understand as the lease fleet grows, the demand for the maintenance tax increases. But when you look at the longer term growth story, so much of it is about on-demand maintenance and on-site maintenance and just you're being able to serve that market. So, can you go into a little more depth here in terms of the overlap between those two products, the regular way lease and rental maintenance versus what you can offer customers on a standalone basis? And then in terms of what you've done to fix that now, kind of where are we in that process? Are you training a bunch of new guys that have to ramp up or are you buying more experienced techs? Just anything to help us kind of understand at of what's going on in the maintenance side would be really helpful. Robert E. Sanchez - Chairman & Chief Executive Officer: Okay. Well, first as it relates to some of the new products on demand and some of the new things that we're coming up with versus our traditional full service lease and contract maintenance, the most important thing, I think is that it's leveraging that same infrastructure that we have, 800 shops, 5,500 technicians. The changes and all the work that we did the last couple of years in prepping not only the billing system, but also the techs and getting them used to the idea of having to give an estimate for on-demand and then having to document the…

John, it's Dennis. I would say to become fully productive, you're looking three months to six months, in that range depending on the technician, put him through training and get them familiar with the Ryder processes and so forth, so in that range, three months. John R. Mims - FBR Capital Markets & Co.: Awesome. Great. Thanks, Dennis. And then as a quick follow-up, when I look at the Supply Chain revenue, big deceleration in the high-tech. That's been running in the high teens. This quarter the revenue growth was down in the low single digits. And I know you said some moderating revenue in fourth quarter, but is there anything particular that's going on in high-tech that's something we should be modeling different going into 2016, or is that still a kind of teens type of growing segment and there's something going on in the short-term? Thanks.

Yeah. No. I think, as you look back into last year, we did some network optimization, rationalization for customers, so you're seeing some of that benefit this year to that customer base, but nothing that we're seeing in the technology sector. John R. Mims - FBR Capital Markets & Co.: Great. So, you're looking at just kind of mid single-digit revenue growth for the whole suite of services in Supply Chain?

Yes. John R. Mims - FBR Capital Markets & Co.: Great. All right, thanks a lot.

Thank you, speaker. Our next question comes from Mr. John Barnes with RBC Capital Markets. Sir, your line is now open.

Hey, thank you. Thanks for taking the question. A couple of things here. Number one, going back on what John just asked in terms of getting the technician side of it corrected, could you just provide us a little color as to how you got behind and why? I mean, you kind of have been ramping up the growth forecast all year. I mean, I think if I go back and look every call, it's been a little bit more growth on the lease fleet. Knowing that that was coming through and knowing that you've done this for as many years as you've done it, what part of the process broke down that allowed you to get this far behind and why was it so easy to correct? Robert E. Sanchez - Chairman & Chief Executive Officer: Well, I think the issue was we knew we were somewhat behind for a few months. However, we felt pretty comfortable that we were going to be able to get the productivity out of the techs in August and September and get the vehicles fixed. It didn't happen. I think what we're learning is -- remember we're trying to manage productivity for 5,500 techs who are maintaining new technology vehicles. And the team has over the last several years really driven more and more productivity, which has helped us offset some of these higher maintenance costs that you see in the technology. We got to a ceiling, if you will. We got to a point we realized, wait a minute, that's it, it's not going any further. And to give you an idea of what we're talking about, you're talking about 0.5%. You're talking about 1,000 vehicles on over 200,000 vehicles that we maintain. And we really thought that we could squeeze a little bit more out of the team and get it done. It didn't work out. So, we know now this is the limit of what we're going to based on the mix of vehicles that we have, and we're making that correction. And the reason why it was easy to maintain is, once you realize that that doesn't work, you just open up...

Overtime. Robert E. Sanchez - Chairman & Chief Executive Officer: ...overtime and allow them to do maintenance in other ways. So, I don't want Dennis and the team to take their foot off the pedal when it comes to continue to drive productivity. But clearly, we got to a point here with all the initiatives that we got going on that we got a little bit ahead of ourselves.

Okay, and I guess we've gotten a lot of questions around the ability to grow the on-demand product maybe as quickly as you want. Is there any limitation there? I mean, look, if your existing techs are fully productive, you're having to open overtime. Is the opportunity as profitable if they are having to do it via overtime, or do you see having to maybe – where we thought before this on-demand rollout was leveraging the existing technician base, is there going to be – you have to be a step up in the technician base in order to handle whatever you do on the on-demand side? Robert E. Sanchez - Chairman & Chief Executive Officer: Well, remember the strategy around on-demand isn't so much to leverage the technician base; it's to leverage the infrastructure, the management, the locations all of the infrastructure that supports them. The rule of thumb is for every 35 or so vehicles you add in full-service lease or rental, you're going to add a technician. That's just the productivity and the capacity. So, I expect that to continue, we've been adding techs, a lot of techs over the last few years. As we continue to grow, we expect to continue to add techs. I think that's a good thing, because at the end of day, that's really our product. If those guys are great at what they do and leveraging their expertise in an environment that has gotten much tougher for folks that are trying to do this on their own is very important. And I think it's important also to say that the issues we're having are not related to an inability to find techs. We can find them. This was just a real drive to get more productivity as we've been doing year-after-year-after-year and got to a point now we realized we've got to back off a little bit. So, Dennis, I don't know if you want to add to that?

Yeah. John, I would just add to that, obviously it is more profitable to serve these customers without having to use the overtime. So, what we're looking at is what's the technician model that we need for all the growth that we're staring in the face of, and that's changing, as we put out in the press release, where we're looking at that and looking at how many techs we need, because we want to serve those customers without having to use an exorbitant amount of overtime. So, that's exactly what we're looking at right now.

Okay. All right, that makes sense. And then lastly, just on the – the more – I guess the pieces of business that are viewed as more economically sensitive between the rental piece and the used equipment, could you talk a little bit about – have you been able to parse out between how much of your rental growth has been with existing customers or lease customers that are coming on line that you're having to backfill until the lease equipment comes in, and then can you talk a little – have you been able to parse that out? And then what percentage of it is coming from just a pure lease customer, or I'm sorry, rental customer and what are you seeing in those trends? And then maybe the same on used equipment. I mean, is it more of a macro issue or is this a Ryder-specific equipment mix, less equipment available, just how do you parse it out between the macro implications and what's Ryder-specific? Robert E. Sanchez - Chairman & Chief Executive Officer: Yeah, I'll let Dennis elaborate in a second. But I think, to answer broadly, the growth that we're seeing in rental, a lot of it is coming from national rental customers, and also additional lease customers as we add more customers to our portfolio, and I would say not only lease, but obviously on-demand on these other products that we're bringing out. So, we're seeing that. We're certainly seeing more of the demand growth, I mentioned in my statements from, right now from straight trucks versus tractors. But in the third quarter, really they both grew. But I think, that's really, what's driving that demand, and I don't think that is a Ryder-specific phenomenon, I think, if we look at other companies that are renting the same types of vehicles as we are, you're going to hear some of the same things. On the used truck side, it is clearly not just a Ryder issue, I think what you have there is an oversupply of a certain type of vehicle, primarily it's the 2011's and 2012 tractors that have had some more challenges around technology, a little less desirable. So other companies that are selling those, we don't have a lot of those that we're selling at this point, we're selling mostly 2009 and 2010. But as they've lowered the prices and try to move those vehicles, they have had some trickle-down effect on our vehicles, and we've made those adjustments to our pricing in the third quarter that we expect now to see us get some additional volumes in the fourth quarter. So Dennis, I don't know if you want to add...

Yeah. John, let me just provide a little quantification for what Robert described earlier. So when you look at our rental revenue in the third quarter, 40% of it was for lease support, 40% of it was for national customers and 20% was for local customers. So, you've got 60% that's for what we call pure rental where it's not associated with a lease support customer, and when you look at what's growing, frankly national and local are growing. So, you've got lease support that's growing double-digit, you've got national that's growing double-digit and you've got local that was growing high-single digits, now that's for the U.S. I just gave you U.S. growth. Globally, the growth was a little less, what globally ex-FX, we were at 9% in the U.S., we are up 12%. So, to answer your question, national is growing nicely, local is growing, as is lease support as the lease fleet grows.

Okay, all right. That's great color. Thanks so much for your time today. Robert E. Sanchez - Chairman & Chief Executive Officer: Thanks, John.

Thank you. Our next question comes from Ben Hartford from Baird. Your line is now open. Ben J. Hartford - Robert W. Baird & Co., Inc. (Broker): Hey, good morning, guys. Robert, maybe thinking about next year FMS margins, I think the last quarter you had talked about confidence in exceeding prior peak margins in FMS given the growth that you had seen. With used truck pricing and values taking a step down in the third quarter and probably this baseline being the appropriate one that we should think about for the foreseeable futures until we lap those comps, obviously full service lease fleet growth is growing above expectations, you've got the offsets you talked about with regard to residuals next year, so a lot to be determined, but how should we think about your confidence or what is your confidence as it relates to exceeding prior peak margins in FMS given the growth given some of the takes that we have this quarter? Robert E. Sanchez - Chairman & Chief Executive Officer: Yeah. I mean, if you think about margin percent, the EBT percent, we're going to some headwinds from gains. Because obviously gains impacted bottom line down without change in the top line. But let me – without giving you a forecast for or guidance for 2016. Let me just maybe go through a few of the puts and takes as I see them today for 2016 just to kind of put things in perspective. First, I want to make sure we're clear that, we have not seen any change in all those the secular trends that we've talked about for the last several years, about outsourcing really being in favor, the fact that we are – we are in the outsourcing business for fleet and supply chain,…

Thank you, speaker. Our next question comes from Scott Group with Wolfe Research. Your line is now open.

Hey, guys, good morning, thanks. So, I think... Robert E. Sanchez - Chairman & Chief Executive Officer: Good morning, Scott.

...those last couple of questions were the crux of what we need to know. So I just want to make sure, I'm understanding everything. You are saying that, you think, based on what you are seeing in used truck pricing right now, gains on sales down on the order of magnitude of $30 million seems fair for next year and you think, you can offset most of that with residual value of asset. Robert E. Sanchez - Chairman & Chief Executive Officer: Right. Scott, I think, what we're saying is that, if you think about a price decline in that 5% to 10% range, gains are going to drop, let's say roughly $30 million. Some of that we've absorbed already in the second half of this year, the remainder will be absorbed next year, and what we're saying is that, in that environment, we would expect our residual value uptick to probably offset the decline that's going to occur in 2016. Art A. Garcia - Chief Financial Officer & Executive Vice President: Some of the $30 million has been realized obviously in the takedown in UVS in the third quarter and fourth quarter. The remainder would come through in 2016. Robert E. Sanchez - Chairman & Chief Executive Officer: Yeah. I think, if you look at the numbers that would be this year, we had a residual or depreciation policy benefit of about $40 million. It's not going to be $40 million next year. Art A. Garcia - Chief Financial Officer & Executive Vice President: The year before it was $25 million. Robert E. Sanchez - Chairman & Chief Executive Officer: And the year before it was $25 million. So, you start to think about a $20 million, $25 million benefit, I think that's reasonable. We haven't finalized it yet though, so, I can't commit to anything. But I think that's really kind of what, the way we're seeing this sort of likely to play out.

And Robert, are you still of the belief that you can get back to those that 13% kind of past peak margin or better than that or given the changes in the used truck market, is that unrealistic now? Robert E. Sanchez - Chairman & Chief Executive Officer: Yeah, I think, we can get back, I think the timing of it is going to change. I think, it's going to be – certainly going to be tougher to get back next year. If we have a headwind of call it $20 million, $30 million in used vehicle sales. Because, if you think about it, the total revenue for FMS is probably $4 billion next year, probably somewhere in that range. So, if you've got headwind of $20 million that's 50 basis points right there.

Yes, yes, yes. And then just last thing, on the leasing fleet for next year you said, if we can grow 5,000 units, 6,000 units, is that kind of a good ballpark or boogie to be thinking about for the next year on the leasing fleet, based on what you see in the sales side right now? Robert E. Sanchez - Chairman & Chief Executive Officer: It's probably early, it's probably early to say – I'm using that as what we're – kind of what we started this year. But, yeah, what I will tell you is, I will expect us to continue to grow even in an environment that is declining.

Hey, Scott, this is Dennis, I'd just add to that. When you look at our term outs heading into next year, they're actually down and we're not pulling back on our sales and marketing as we may have historically, in fact, we're going to increase it. So what's going to happen is we're going to free up people to do more hunting. So, we're driving for more fleet growth.

Got you. All right. Thank you, guys.

Thank you, speakers. Our next question comes from Jeff Kauffman with Buckingham Research. Your line is now open.

Thank you very much. Hi, guys. Robert E. Sanchez - Chairman & Chief Executive Officer: Hello. Art A. Garcia - Chief Financial Officer & Executive Vice President: Hey.

Hey. I mean, first of all, congratulations, it is a tough environment out there and you got hit by some odd things. But I want to go back to the larger question here. You are growing and you are signing new contracts, yet cash flow year-to-date isn't any better than last year. I'm starting to see mileage per unit on your rental side down, I think, 1% year-on-year you're talking about, and I'm looking and a couple years ago the rental fleet relative to the lease fleet was about 31%, yet to the day that's up to 34%. So, the rental fleet has grown in relation to lease fleet, and I know you said some of that is – a fair amount of that is full service lease support. But is the disconnect here that the vehicles are more expensive and we're not necessarily pricing those vehicles, so that cash flow is up the way our capital spending up, or should I think of it more as you guys see what's in the pipeline we don't and we're going to see that cash flow start to catch up to the spending? Robert E. Sanchez - Chairman & Chief Executive Officer: Yeah. I think, and I'll let Art address it in more detail.

Okay. Robert E. Sanchez - Chairman & Chief Executive Officer: But, I think, Jeff, I think, the key thing is that we have a rising rate of growth in our fleet. Right, so we grew, remember two years ago we grew our lease fleet 1,700 units.

Right. Robert E. Sanchez - Chairman & Chief Executive Officer: Last year, we grew at 3,200 units. This year, we're growing 60 – 6,000 units to 6,500 units, so double. So, the issue is every one of those additional vehicles, I buy is another call it $90,000 to $100,000 of CapEx. So, the earnings being generated – the cash earnings being generated get offset pretty quickly by the growth that we're seeing. So that's the big, I think the biggest party of the story. I think, also clearly, we can't lose sight of the fact that over the last several years, we have had some headwind from maintenance cost that does – that has put pressure on earnings from that standpoint. The offset has been we've also been selling vehicles for a lot less than what we had expected. So net-net they were – they've been offsetting each other. I would expect that for more than we expected – for more than we expected. So I would expect that, even with the slowing UVS environment, that's still going to continue relative to what those vehicles used to go for before. So I think the net of all that is you're getting the free cash flow. The timing of it might be a little bit different, but the biggest headwind that we have on free cash flow is the growth, and if the growth were really to temper down, you would see that improve. Art A. Garcia - Chief Financial Officer & Executive Vice President: Right.

Well, so if I kind of read between the lines on what you're saying, I should probably see that ratio of rental vehicles to lease vehicles start to slide back down again, and you mentioned rental CapEx will be a little lower next year. Should I in theory see total capital spending start to pull back a little bit then even though the full service lease fleet is still going to be growing at a good clip? Robert E. Sanchez - Chairman & Chief Executive Officer: It depends how much we – how much growth we're able to get, right. If we're able to get more growth than we did today, I would – I think, it's reasonable to assume that rental spending will probably be less. Now – if I end – and if I end up growing lease at the same clip that I grew it this year. Yeah, net will probably less because you won't have an offset. If I grow it more, then it will – it could offset what I'm going to save in rental. What I would tell you on that rental growth outpacing lease, we have a – what we monitor is rental revenue as a percent of total FMS revenue, and we've always talked about, we keep it in a range of 20% to 25%. What you're pointing out is true. We've got – we're now in the high-end of the 25%, but we don't have any intention, have never had intention of going beyond that. So if anything, over time that number will probably start to come down.

All right. Yes, I'm sorry, go ahead. Art A. Garcia - Chief Financial Officer & Executive Vice President: Yeah. Jeff, I would keep in mind, we're trying to highlight to everyone that operating cash flow is a good metric. That really shows that we're getting the cash back from this growth spending. You could see that's grown substantially over the last five years to six years. It's going to be up again this year. If you look at our EBITDA, that's also up. That's reflecting the earnings or the cash flow that the business does generate. And it goes back to Robert's point: we're growing faster every year, over the last few years, and that really impacts that free cash flow metric, if you think about this year, we got free – growth capital the way we measure it at that about $1.1 billion, $1.2 billion, and that's really what's driving that negative free cash flow.

Guys. Thank you. Art A. Garcia - Chief Financial Officer & Executive Vice President: Okay. Robert E. Sanchez - Chairman & Chief Executive Officer: Thank you.

Thank you, speakers. Our next question comes from Kevin Sterling with BB&T Capital Markets. Your line is now open. Kevin W. Sterling - BB&T Capital Markets: Thank you. Good morning, gentlemen. Robert E. Sanchez - Chairman & Chief Executive Officer: Good morning. Art A. Garcia - Chief Financial Officer & Executive Vice President: Good morning. Kevin W. Sterling - BB&T Capital Markets: Robert, little bit talk about the technicians and you're ramping up, and where do you hire technicians from? Do you hire within the industry or can you go outside of the industry to bring on technicians? Robert E. Sanchez - Chairman & Chief Executive Officer: Go ahead.

Yeah, Kevin. This is Dennis. I'll take that one. So, there's really three sources that we look at. First is obviously the trade schools, where we have good relationships. We got a great relationship also with the military; we've had great success there in bringing our folks home and giving them civilian jobs. And then we promote from within. We take people who are on the fuel island who want to become technicians, and we take them through our training program and bring them in as what we call our first level technician and give them the opportunity to grow from there. So those are our three sources, and we do pretty well at recruiting folks. We – as Robert said earlier, we haven't had a problem staffing, and we don't anticipate seeing that. It's just a matter of us balancing the productivity we're going to get with the fleet growth we're going to get and then bringing the technicians on at the right time. Kevin W. Sterling - BB&T Capital Markets: Great. Okay. Thank you, Dennis. And Robert, you know, a lot of talk about the used truck market. I think it was a couple years ago, you had to move some of your – I think, some of your rental inventory into the wholesale market in the wholesale channel, and do you envision, do you think you have to do that this time if the used truck market continues to slow or kind of you're at a balance with the inventory where you can continue to sell through the retail channel? Robert E. Sanchez - Chairman & Chief Executive Officer: Yeah, obviously with low inventory levels, we have a lot more options in terms of being able to sell more, continue to sell more through retail. The period you're talking about was probably the time we had like 9,000 vehicles to 10,000 vehicles in inventory. Think about, we only – we have about 6,000 now. And in that environment, yeah, you had to find other channels, but I think the combination of low inventory levels in used trucks, and all of the asset management programs that we have in place, particularly this – our ability to lease trucks out of our rental fleet and really ramping that up, really can help us adjust the size of the rental fleet pretty quickly, and without having to maybe leverage the wholesale market. Kevin W. Sterling - BB&T Capital Markets: Got you. Okay. Robert, thank you so much. And gentlemen, thanks so much for your time today. Robert E. Sanchez - Chairman & Chief Executive Officer: Thank you, Kevin. Art A. Garcia - Chief Financial Officer & Executive Vice President: Thank you.

Thank you, speakers. Our next question comes from Tom Kim with Goldman Sachs. Your line is now open. Tom Kim - Goldman Sachs & Co.: Good morning, gents, and thanks for the time here. I wanted to ask, with regard to the leverage, you are obviously at the high end of your target, and I'm wondering to what extent does the balance sheet become an inhibitor to growth? I guess, how much – how willing are you to let the loads, sort of debt loads exceed sort of target range? Art A. Garcia - Chief Financial Officer & Executive Vice President: Well, Tom, I would tell you, our business just tends to de-lever over time. This year is little bit of an anomaly. We've been impacted by FX, which is an unusual item. We don't expect that to continue, and even pensions worked against us to a certain extent. So for our business, really negative free cash flows almost needed to require the business to maintain current leverage at $2.50 to $2.75. So that's why over time you've seen us go down well below target. So I think right now I'm really not concerned, I think we can more than handle the kind of growth that we've been talking about this year. We've grown the lease fleet 6,000 units, 6,500 units, grew rental 2,000 plus. So, we were able to handle that still within target range. Tom Kim - Goldman Sachs & Co.: That's helpful. And then I guess just with regard to M&A, I mean how should we think about your potential opportunities to seize on anything does come along that would be interesting? What sort of ways in which you'd be – would you be considering opportunistic M&A if it were to come along? Robert E. Sanchez -…

Thank you. Our next question comes from Todd Fowler of KeyBanc Capital Markets. Your line is now open.

Great, thanks and good morning. I just wanted to follow up I guess on the leverage question. I guess, realistically, how much would you expect to be able to deleverage maybe going into 2016, assuming maybe that 2015 is kind of the peak from a lease writing activity and the lease growth starts to slow a little bit. How much can you deleverage just by seeing less CapEx? And then what level of leverage would you need to get back to to resume the antidilutive share repurchase? Art A. Garcia - Chief Financial Officer & Executive Vice President: Yes, Todd, it's hard to say exactly, probably a similar kind of free cash flow. We would expect to deleverage because we don't expect the FX headwinds and hopefully not the pension headwinds, you may go down 15 points, 20 points I'd say at most. I think in one year, over a period of time, our business would delever much more than that. So I think relative to your question about share repurchases and the like, typically that's not going to happen unless we're well under our target leverage range to do any kind of discretionary. I think on the anti-dilutive, we're going to look at that. Every quarter we've been looking at that and whether we can...

Right. Art A. Garcia - Chief Financial Officer & Executive Vice President: ...reinstate that. So I would expect us once we're within our target ranges, we would probably turn that back on.

Okay. That's helpful, Art. And then just one quick follow-up, if I could. Did you give a estimate of what you think the impact of the out of service vehicles were on rental utilization in the quarter? So the 76.4% if you didn't have the out of services issues, do you have an idea of where rental utilization would have been excluding that? Robert E. Sanchez - Chairman & Chief Executive Officer: Yes. The way I would look at is, if you look at the combined number of units that were out of service, it's close to 1,000, right? So that's...

Okay. Robert E. Sanchez - Chairman & Chief Executive Officer: So with 1,000 units on our fleet of 35,000 is probably about three percentage points.

Okay. I can work into some of that math. But it seems like that you would have been maybe up a little from a utilization standpoint versus the third quarter of last year then? Robert E. Sanchez - Chairman & Chief Executive Officer: Yes. It gets a little tricky because some of those leased units that are being substituted it's in the utilization number, but it'd be right around where we were last year. I would say flat with last year.

Okay. That's helps, Robert. Thanks for the time this morning. Robert E. Sanchez - Chairman & Chief Executive Officer: Okay. Thank you. Art A. Garcia - Chief Financial Officer & Executive Vice President: Thank you, Todd.

Thank you, speakers. Our next question is from Matt Brooklier with Longbow Research. Your line is now open.

Hey, thanks. Good morning. So question on your seasonal rental business, how much visibility do you have there on the portion of the business that's more transactional, I guess, that the national account and the local accounts versus the rental trucks that go to support the lease business? Robert E. Sanchez - Chairman & Chief Executive Officer: Yes. I think, I had mentioned it in the script, but we are seeing strong rental reservations from our seasonal customers, as you might imagine, the guys that are ramping up for the holiday, the parcel type companies for November and December. So, as we get into that season, the units are available, which we would expect to have those units rented out to those folks. So I would tell you what we're seeing is good, strong, reservation activity from those customers. If anything, the only thing maybe different than last year, some of it might be a little bit later than we saw last year, which last year they picked them up sooner in the quarter, but we're looking at November and December.

Okay. And any thoughts – it sounds like the straight truck portion of the market is feeling stronger versus the tractor portion and I think that runs also into your rental business you saw similar trends. Any thoughts as to what's driving I guess greater demand or less supply in the straight truck portion of your business versus the Class 8s? Robert E. Sanchez - Chairman & Chief Executive Officer: Well, some of it is seasonal. This time of the year you've got the parcel companies who are going to pick up more of the straight trucks than the tractors. But it could be various things. I think what we're doing is we're kind of viewing as an opportunity to really de-fleet and get ourselves prepared for the first quarter. So we're in the process of doing that with the rental lease program and then also with some of the things that we're doing around out-servicing vehicles and putting them at the used truck lots.

Okay. Appreciate the time. Robert E. Sanchez - Chairman & Chief Executive Officer: Thank you, Matt.

Thank you, speakers. Our next question comes from Justin Long with Stephens. Your line is now open.

Thanks, and good morning, guys. Robert E. Sanchez - Chairman & Chief Executive Officer: Good morning.

You've talked about some longer-term objectives for revenue growth by segment, some targeted annual improvement in margins. When you put together all the pieces, it seems to imply double-digit earnings growth. Over the longer term, do you still think that's a good framework for thinking about the business, even if you take a more pessimistic view on the used truck market in the next couple of years? Robert E. Sanchez - Chairman & Chief Executive Officer: Yes, I do. I think, we've said high single-digit generally on the top line, and I would expect to get some leverage and get double-digit growth on the bottom line. Obviously, if you've got some headwind on the gains line, that's going to put some pressure, maybe bring it down to the low end of the double-digit, maybe even high-single digit, but I would expect over the cycle clearly to have double-digit earnings growth along with that high-single digit top line growth.

Okay. That's helpful. I know it's been a long call, but the last question. I was wondering if you could talk about the role you think Ryder can play in the e-commerce trend, maybe you could talk about the exposure you have to e-commerce today and looking ahead what opportunities you see across your businesses? Robert E. Sanchez - Chairman & Chief Executive Officer: Yes, I think, I'll let Steve kind of elaborate on that a little bit, but I think clearly on the truck – wherever there's trucks needed, we can play a role on the FMS side and with all the different product offerings that we have, which e-commerce certainly all that – the deliveries to homes is a big part of that. On the logistics side, I think there's a lot of stuff, if you think about the offerings that we have running distribution centers, our ability to manage orders from customers and really what is called the omni-channel and our ability to actually execute that for customers that need it. We've got great expertise and capabilities there, but I'll let Steve to elaborate a little more on that.

Yes, I would just add, we do that today for many of our customers across multiple verticals. We have the capability to not only deliver into retail DCs but into store fronts through cross dock networks and last mile as well as to consumers' homes. So I think we've got a really good model right now for our key customers and we're going to continue to focus on additional capabilities to expand that.

Okay, great. I'll leave it at that. Thanks for the time. Robert E. Sanchez - Chairman & Chief Executive Officer: Thanks, Justin.

Thank you. Our next question comes from the line of Casey Deak with Wells Fargo. Your line is now open.

Thank you. Good afternoon, guys. Robert E. Sanchez - Chairman & Chief Executive Officer: Hello. Art A. Garcia - Chief Financial Officer & Executive Vice President: Hey.

Just wanted to go back, when you talked about the rule of thumb, Robert, of 35 vehicles to one tech being hired. Have you seen that compress over time as you've rolled out on-demand maintenance and more transactional businesses? And then more strategically, when you're looking at that transactional piece of the business, how are you modeling out the staffing needs there? I would think that that would be a lot harder to know how many techs you'd need with the uncertainty of how many trips those trucks are going to be making to your shops. Robert E. Sanchez - Chairman & Chief Executive Officer: Yes, well, what I would tell you is the number over the last several years has actually grown. As we've improved productivity, you're getting more trucks per technician on our base fleet. On the on-demand stuff, you're right. It's a little trickier, but you have a general idea of where the trucks are, and the amount of work that a technician does on an on-demand truck is typically a lot significantly less. So that's where you're able to leverage some of the capabilities. When we get a large on-demand customer, though, we'll have a contract and we'll know where the vehicles reside, and where we need to staff up then we staff up, and we can adjust that as needed. Dennis, you want to add anything to that.

Yes. I would just add that as we're viewing it, as we bring a technician on, if the on-demand revenue of the truck doesn't come in, we're looking at the technician running more road calls, which our customers like, versus using a third-party. We're looking at rather than sending work down the road to a vendor, keeping it in-house. We're looking at increasing our PM currency even more. We're looking at lowering over time. So the point is, you can bring the technician on. There is a lot of work to be done, which then you can free that up if the on-demand truck comes in. So... Robert E. Sanchez - Chairman & Chief Executive Officer: Yes, we have other ways of flexing...

Right Robert E. Sanchez - Chairman & Chief Executive Officer: ...to be able to utilize the tech.

Okay. I guess, that's helpful. And I was thinking, if this business really does ramp as you'd expect it to with the full rollout and continues over the next few years, is this something that three quarters, four quarter down the road you get more of a backup in your maintenance as you did in this quarter, or you feel much more comfortable with where you are in your level of staffing and ability to flex that? Thanks. Robert E. Sanchez - Chairman & Chief Executive Officer: Yes. I think, obviously, this quarter has taught us a lesson. So we're obviously looking at the modeling. But I don't seen an issue with where we're going of maintaining the staffing and the work is there to flex as more on-demand comes in. So we see real opportunity to continue growing this product line.

Okay. Thank you, guys. Robert E. Sanchez - Chairman & Chief Executive Officer: Thank you.

Thank you. Our next question comes from Nicole O'Brien at Stockpoint (1:12:27). Your line is now open. Robert E. Sanchez - Chairman & Chief Executive Officer: Okay. Is Nicole (1:12:42) on?

Yes, but his or her line isn't speaking right now. All right. So, sir, at this time, I would like to hand the call over to Mr. Robert Sanchez. Robert E. Sanchez - Chairman & Chief Executive Officer: Well. Okay, we're sorry about that, Nicole (1:12:57). Maybe we'll pick up your question later. Well, listen, I think that concludes the call. We're actually about 15 minutes past the top of the hour, but I wanted to make sure we got everybody's question in, considering the type of quarter that we had. So look forward to our call again in a few months as we discuss 2016. Anyway, have a safe day and we'll see you on the road.

Thank you, speakers. And that concludes today's conference. Thank you all for joining. You may now disconnect.