Presenting on today's call are Greg Swienton, Chairman and Chief Executive Officer; Robert Sanchez, President and Chief Operating Officer; and Art Garcia, Executive Vice President and Chief Financial Officer. Additionally, Dennis Cooke, President of Global Fleet Management Solutions; and John Williford, 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 Greg. Gregory T. Swienton Thanks, Bob, and good morning, everyone. This morning, we'll recap our second quarter 2012 results, review the asset management area and discuss our current outlook for the business. And after our initial remarks, we'll open up the call for questions, so let me ride into an overview of our second quarter results. I'll begin on Page 4, for those of you following on the web, in the PowerPoint presentation. Net earnings per diluted share from continuing operations were $0.91 for the second quarter 2012, up from $0.79 in the prior year period. The second quarter results included a $0.09 restructuring charge for recent workforce reduction initiatives. Prior year second quarter included a $0.10 charge from a tax law change and a $0.03 charge from acquisition-related transaction costs. Excluding these items, in each period for both years, comparable EPS was $1 in the second quarter 2012, up from $0.92 in quarter 2 2011. This is an improvement of $0.08 or 9% over the prior year period. Second quarter comparable EPS was above the high end of our most recent forecast range of $0.90 to $0.95. The outperformance was due primarily to higher used vehicle pricing in both retail and wholesale sales, lower-than-expected maintenance costs resulting from ongoing operational initiatives and a modest decline in the lease fleet age as well as lower discretionary overhead spending. Total revenue grew 3% from the prior year. Operating revenue, which excludes FMS fuel and all subcontracted transportation revenue, increased 6%. Increase in revenue reflects both the benefit of organic growth in the Hill Hire acquisition, which was completed in early June last year.
Page 5 includes some additional financial statistics for the second quarter. The average number of diluted shares outstanding for the quarter declined to $50.7 million. During the second quarter, we purchased approximately 234,000 shares at an average price of $46.87 under our 2-million-share anti-dilutive program, which expires in December 2013. As of June 30, there were 51.1 million shares outstanding, of which 50.7 million are included in the diluted share calculation.The second quarter 2012 tax rate was 36.6%. The prior year's tax rate of 45.5% was negatively impacted by a tax law change in Michigan. Excluding this item from 2011, the comparable tax rate would have been 37.7% last year. Page 6 highlights key financial statistics for the year-to-date period. Operating revenue was up by 8%. Comparable EPS from continuing operations were $1.59, up by 11% from $1.43 in the prior year. Adjusted return on capital was 5.6% versus 5.3% in the prior year as growth in earnings outpaced growth in capital. Spread between adjusted return on capital and cost of capital is 50 basis points for the trailing 12-month period and is now forecast to be 80 basis points for the full year. I'd like to turn now to Page 7 to discuss some of the key trends we saw during the second quarter in the business segments. In Fleet Management, total revenue grew 3% versus the prior year. Total FMS revenue includes a 5% decrease in fuel services revenue, reflecting lower fuel cost pass-throughs and fewer gallons sold. Read the rest of this transcript for free on seekingalpha.com