United Rentals Announces Second Quarter 2018 Results and Raises 2018 Guidance STAMFORD, Conn.
United Rentals, Inc. (NYSE: URI) today announced financial results for
the second quarter 20181. Total revenue was $1.891 billion
and rental revenue was $1.631 billion for the second quarter, compared
with $1.597 billion and $1.367 billion, respectively, for the same
period last year. On a GAAP basis, the company reported second quarter
net income of $270 million, or $3.20 per diluted share, compared with
$141 million, or $1.65 per diluted share, for the same period last year.
The second quarter 2018 includes a net income benefit associated with
the Tax Cuts and Jobs Act (the “Tax Act”) that was enacted in December
2017. The Tax Act reduced the U.S. federal corporate statutory tax rate
from 35% to 21%, which contributed an estimated $0.58 to earnings per
diluted share for the second quarter 20182.
Adjusted EPS3 for the quarter was $3.85 per diluted share,
compared with $2.37 per diluted share for the same period last year. The
reduction in the tax rate discussed above contributed an estimated $0.70
to adjusted EPS for the second quarter 20182. Adjusted EBITDA3
was $907 million and adjusted EBITDA margin3 was 48.0%,
reflecting increases of $160 million and 120 basis points, respectively,
from the same period last year.
Second Quarter 2018 Highlights
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Rental revenue4 increased 19.3% year-over-year. Within
rental revenue, owned equipment rental revenue increased 19.3%,
reflecting increases of 15.9% in the volume of equipment on rent and
2.8% in rental rates.
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Pro forma1 rental revenue increased 11.4% year-over-year,
reflecting growth of 7.1% in the volume of equipment on rent and a
2.8% increase in rental rates.
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Time utilization decreased 20 basis points year-over-year to 69.2%,
primarily reflecting the impact of the Neff acquisition. On a pro
forma basis, time utilization was flat year-over-year.
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The company’s Trench, Power and Pump specialty segment's rental
revenue increased by 33.5% year-over-year, including a 21.9% increase
on a same store basis. The segment’s rental gross margin decreased by
110 basis points to 48.5%.
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1.
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The company completed the acquisitions of NES Rentals Holdings II,
Inc. (“NES”) and Neff Corporation ("Neff") in April 2017 and October
2017, respectively. NES and Neff are included in the company's
results subsequent to the acquisition dates. Pro forma results
reflect the combination of United Rentals, NES and Neff for all
periods presented.
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2.
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The estimated contribution of the Tax Act was calculated by applying
the percentage point tax rate reduction to U.S. pretax income and
the pretax adjustments reflected in adjusted EPS.
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3.
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Adjusted EPS (earnings per share) and adjusted EBITDA (earnings
before interest, taxes, depreciation and amortization) are non-GAAP
measures that exclude the impact of the items noted in the tables
below. See the tables below for amounts and reconciliations to the
most comparable GAAP measures. Adjusted EBITDA margin represents
adjusted EBITDA divided by total revenue.
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4.
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Rental revenue includes owned equipment rental revenue, re-rent
revenue and ancillary revenue.
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The company generated $157 million of proceeds from used equipment
sales at a GAAP gross margin of 41.4% and an adjusted gross margin of
51.6%, compared with $133 million at a GAAP gross margin of 39.1% and
an adjusted gross margin of 52.6% for the same period last year. The
year-over-year increase in used equipment sales primarily reflects
increased volume, driven by a significantly larger fleet size, in a
strong used equipment market.5
BakerCorp Acquisition
On July 2, 2018, the company announced that it has entered into a
definitive agreement to acquire BakerCorp International Holdings, Inc.
(“BakerCorp”) for approximately $715 million in cash. BakerCorp is a
leading provider of rental solutions for fluid storage, transfer and
treatment, with approximately $295 million in annual revenue and 950
employees. BakerCorp’s operations are primarily concentrated in the
United States and Canada, where it has 46 locations, with another 11
locations in France, Germany, the United Kingdom and the Netherlands.
The transaction is expected to close early in the third quarter and
contribute approximately $140 million of revenue and $40 million of
adjusted EBITDA to full-year 2018 results, while adding approximately
$50 million to the 2018 capital spending plan.
CEO Comments
Michael Kneeland, chief executive officer of United Rentals, said, "We
were very pleased with the momentum of our business in the second
quarter, as strong gains in volume and rates helped drive better than
11% growth in pro forma rental revenue. Importantly, demand remained
robust across our construction and industrial verticals in both the U.S.
and Canada. The Neff integration is largely complete, and we look
forward to getting the process started with Baker this quarter."
Kneeland continued, "Everything we see internally and externally points
to a durable cycle and continued industry discipline in managing fleet
growth. Given this backdrop, we’ve raised our 2018 guidance for total
revenue, adjusted EBITDA and capex. We remain focused on executing a
balanced strategy of growth and returns to maximize long-term value."
Six Months 2018 Highlights
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Rental revenue increased 22.0% year-over-year. Within rental revenue,
owned equipment rental revenue increased 22.1%, reflecting increases
of 20.6% in the volume of equipment on rent and 2.4% in rental rates.
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Pro forma rental revenue increased 10.7% year-over-year, reflecting
growth of 7.0% in the volume of equipment on rent and a 2.8% increase
in rental rates.
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Time utilization decreased 60 basis points year-over-year to 67.2%,
primarily reflecting the impact of the NES and Neff acquisitions. On a
pro forma basis, time utilization decreased 10 basis points
year-over-year.
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The company’s Trench, Power and Pump specialty segment's rental
revenue increased by 34.9% year-over-year, including a 23.7% increase
on a same store basis. The segment’s rental gross margin increased by
20 basis points to 47.4%.
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The company generated $338 million of proceeds from used equipment
sales at a GAAP gross margin of 41.1% and an adjusted gross margin of
53.0%, compared with $239 million at a GAAP gross margin of 41.0% and
an adjusted gross margin of 51.9% for the same period last year. The
year-over-year increase in used equipment sales primarily reflects
increased volume, driven by a significantly larger fleet size, in a
strong used equipment market.5
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5.
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Used equipment sales adjusted gross margin excludes the impact of
the fair value mark-up of acquired RSC, NES and Neff fleet that was
sold. In 2018, we adopted Accounting Standards Codification (“ASC”)
Topic 606, “Revenue from Contracts with Customers”. Used equipment
sales in the second quarter of 2017 would have been reduced by $12
under Topic 606 because such sales would have been recognized prior
to the second quarter. Under Topic 606, we would have recognized an
additional $12 of sales of rental equipment during the first six
months of 2017. While the adoption of Topic 606 impacted the timing
of revenue recognition, it has no impact on annual revenue.
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2018 Outlook
The following revised full-year guidance does not include the impact of
the pending acquisition of BakerCorp. For additional detail on
BakerCorp, please see the section above, as well as the investor
presentations that are currently accessible on www.unitedrentals.com.
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Prior Outlook
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Current Outlook
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Total revenue
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$7.3 billion to $7.6 billion
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$7.5 billion to $7.7 billion
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Adjusted EBITDA6
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$3.6 billion to $3.75 billion
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$3.675 billion to $3.775 billion
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Net rental capital expenditures after gross purchases
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$1.2 billion to $1.35 billion, after gross purchases of $1.8
billion to $1.95 billion
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$1.25 billion to $1.35 billion, after gross purchases of $1.9 billion
to $2.0 billion
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Net cash provided by operating activities
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$2.625 billion to $2.825 billion
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$2.675 billion to $2.825 billion
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Free cash flow7 (excluding the impact of merger and
restructuring related payments)
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$1.3 billion to $1.4 billion
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$1.3 billion to $1.4 billion
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Free Cash Flow and Fleet Size
For the first six months of 2018, net cash provided by operating
activities was $1.649 billion, and free cash flow was $703 million after
total rental and non-rental gross capital expenditures of $1.306
billion. For the first six months of 2017, net cash provided by
operating activities was $1.329 billion, and free cash flow was $614
million after total rental and non-rental gross capital expenditures of
$968 million. Free cash flow for the first six months of 2018 and 2017
included aggregate merger and restructuring related payments of $16
million and $31 million, respectively.
The size of the rental fleet was $11.98 billion of OEC at June 30, 2018,
compared with $11.51 billion at December 31, 2017. The age of the rental
fleet was 46.0 months on an OEC-weighted basis at June 30, 2018,
compared with 47.0 months at December 31, 2017.
Return on Invested Capital (ROIC)
ROIC was 10.0% for the 12 months ended June 30, 2018, compared with 8.4%
for the 12 months ended June 30, 2017. The company’s ROIC metric uses
after-tax operating income for the trailing 12 months divided by average
stockholders’ equity, debt and deferred taxes, net of average cash. To
mitigate the volatility related to fluctuations in the company’s tax
rate from period to period, the U.S. federal corporate statutory tax
rates of 21% and 35% for 2018 and 2017, respectively, were used to
calculate after-tax operating income.
The company expects ROIC to materially increase due to the reduced tax
rates following the enactment of the Tax Act, but, because the trailing
12 months are used for the ROIC calculation, the full impact will not be
reflected until one year after the lower tax rate became effective. If
the 21% U.S. federal corporate statutory tax rate following the
enactment of the Tax Act was applied to ROIC for all historic periods,
the company estimates that ROIC would have been 10.9% and 10.0% for the
12 months ended June 30, 2018 and 2017, respectively.
Share Repurchase Program
The company completed its $1 billion program to repurchase shares of its
common stock in the second quarter 2018. Following its completion, in
July 2018, the company commenced a new $1.25 billion share repurchase
program, which the company intends to complete by the end of 2019.
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6.
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Information reconciling forward-looking adjusted EBITDA to the
comparable GAAP financial measures is unavailable to the company
without unreasonable effort, as discussed below.
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7.
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Free cash flow is a non-GAAP measure. See the table below for
amounts and a reconciliation to the most comparable GAAP measure.
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Conference Call
United Rentals will hold a conference call tomorrow, Thursday, July 19,
2018, at 11:00 a.m. Eastern Time. The conference call number is
855-458-4217 (international: 574-990-3618). The conference call will
also be available live by audio webcast at unitedrentals.com, where it
will be archived until the next earnings call. The replay number for the
call is 404-537-3406, passcode is 2978447.
Non-GAAP Measures
Free cash flow, earnings before interest, taxes, depreciation and
amortization (EBITDA), adjusted EBITDA, and adjusted earnings per share
(adjusted EPS) are non-GAAP financial measures as defined under the
rules of the SEC. Free cash flow represents net cash provided by
operating activities less purchases of, and plus proceeds from,
equipment. The equipment purchases and proceeds represent cash flows
from investing activities. EBITDA represents the sum of net income,
provision for income taxes, interest expense, net, depreciation of
rental equipment and non-rental depreciation and amortization. Adjusted
EBITDA represents EBITDA plus the sum of the merger related costs,
restructuring charge, stock compensation expense, net, and the impact of
the fair value mark-up of acquired fleet. Adjusted EPS represents EPS
plus the sum of the merger related costs, restructuring charge, the
impact on depreciation related to acquired fleet and property and
equipment, the impact of the fair value mark-up of acquired fleet, the
loss on repurchase/redemption of debt securities and amendment of ABL
facility, and merger related intangible asset amortization. The company
believes that: (i) free cash flow provides useful additional information
concerning cash flow available to meet future debt service obligations
and working capital requirements; (ii) EBITDA and adjusted EBITDA
provide useful information about operating performance and
period-over-period growth, and help investors gain an understanding of
the factors and trends affecting our ongoing cash earnings, from which
capital investments are made and debt is serviced; and (iii) adjusted
EPS provides useful information concerning future profitability.
However, none of these measures should be considered as alternatives to
net income, cash flows from operating activities or earnings per share
under GAAP as indicators of operating performance or liquidity.
Information reconciling forward-looking adjusted EBITDA to GAAP
financial measures is unavailable to the company without unreasonable
effort. The company is not able to provide reconciliations of adjusted
EBITDA to GAAP financial measures because certain items required for
such reconciliations are outside of the company’s control and/or cannot
be reasonably predicted, such as the provision for income taxes.
Preparation of such reconciliations would require a forward-looking
balance sheet, statement of income and statement of cash flow, prepared
in accordance with GAAP, and such forward-looking financial statements
are unavailable to the company without unreasonable effort. The company
provides a range for its adjusted EBITDA forecast that it believes will
be achieved, however it cannot accurately predict all the components of
the adjusted EBITDA calculation. The company provides an adjusted EBITDA
forecast because it believes that adjusted EBITDA, when viewed with the
company’s results under GAAP, provides useful information for the
reasons noted above. However, adjusted EBITDA is not a measure of
financial performance or liquidity under GAAP and, accordingly, should
not be considered as an alternative to net income or cash flow from
operating activities as an indicator of operating performance or
liquidity.
About United Rentals
United Rentals, Inc. is the largest equipment rental company in the
world. The company has an integrated network of 1,008 rental locations
in 49 states and every Canadian province. The company’s approximately
15,500 employees serve construction and industrial customers, utilities,
municipalities, homeowners and others. The company offers approximately
3,400 classes of equipment for rent with a total original cost of $11.98
billion. United Rentals is a member of the Standard & Poor’s 500 Index,
the Barron’s 400 Index and the Russell 3000 Index® and is headquartered
in Stamford, Conn. Additional information about United Rentals is
available at unitedrentals.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995, known
as the PSLRA. These statements can generally be identified by the use of
forward-looking terminology such as “believe,” “expect,” “may,” “will,”
“should,” “seek,” “on-track,” “plan,” “project,” “forecast,” “intend” or
“anticipate,” or the negative thereof or comparable terminology, or by
discussions of vision, strategy or outlook. These statements are based
on current plans, estimates and projections, and, therefore, you should
not place undue reliance on them. No forward-looking statement can be
guaranteed, and actual results may differ materially from those
projected. Factors that could cause actual results to differ materially
from those projected include, but are not limited to, the following: (1)
the challenges associated with past or future acquisitions, including
NES, Neff and BakerCorp, such as undiscovered liabilities, costs,
integration issues and/or the inability to achieve the cost and revenue
synergies expected; (2) a slowdown in North American construction and
industrial activities, which could reduce our revenues and
profitability; (3) our significant indebtedness, which requires us to
use a substantial portion of our cash flow for debt service and can
constrain our flexibility in responding to unanticipated or adverse
business conditions; (4) the inability to refinance our indebtedness at
terms that are favorable to us, or at all; (5) the incurrence of
additional debt, which could exacerbate the risks associated with our
current level of indebtedness; (6) noncompliance with covenants in our
debt agreements, which could result in termination of our credit
facilities and acceleration of outstanding borrowings; (7) restrictive
covenants and amount of borrowings permitted under our debt agreements,
which could limit our financial and operational flexibility; (8) an
overcapacity of fleet in the equipment rental industry; (9) a decrease
in levels of infrastructure spending, including lower than expected
government funding for construction projects; (10) fluctuations in the
price of our common stock and inability to complete stock repurchases in
the time frame and/or on the terms anticipated; (11) our rates and time
utilization being less than anticipated; (12) our inability to manage
credit risk adequately or to collect on contracts with customers; (13)
our inability to access the capital that our business or growth plans
may require; (14) the incurrence of impairment charges; (15) trends in
oil and natural gas could adversely affect demand for our services and
products; (16) our dependence on distributions from subsidiaries as a
result of our holding company structure and the fact that such
distributions could be limited by contractual or legal restrictions;
(17) an increase in our loss reserves to address business operations or
other claims and any claims that exceed our established levels of
reserves; (18) the incurrence of additional costs and expenses
(including indemnification obligations) in connection with litigation,
regulatory or investigatory matters; (19) the outcome or other potential
consequences of litigation and other claims and regulatory matters
relating to our business, including certain claims that our insurance
may not cover; (20) the effect that certain provisions in our charter
and certain debt agreements and our significant indebtedness may have of
making more difficult or otherwise discouraging, delaying or deterring a
takeover or other change of control of us; (21) management turnover and
inability to attract and retain key personnel; (22) our costs being more
than anticipated and/or the inability to realize expected savings in the
amounts or time frames planned; (23) our dependence on key suppliers to
obtain equipment and other supplies for our business on acceptable
terms; (24) our inability to sell our new or used fleet in the amounts,
or at the prices, we expect; (25) competition from existing and new
competitors; (26) security breaches, cybersecurity attacks and other
significant disruptions in our information technology systems; (27) the
costs of complying with environmental, safety and foreign laws and
regulations, as well as other risks associated with non-U.S. operations,
including currency exchange risk; (28) labor difficulties and
labor-based legislation affecting our labor relations and operations
generally; (29) increases in our maintenance and replacement costs
and/or decreases in the residual value of our equipment; and (30) the
effect of changes in tax law, such as the effect of the Tax Cuts and
Jobs Act that was enacted on December 22, 2017. For a more complete
description of these and other possible risks and uncertainties, please
refer to our Annual Report on Form 10-K for the year ended December 31,
2017, as well as to our subsequent filings with the SEC. The
forward-looking statements contained herein speak only as of the date
hereof, and we make no commitment to update or publicly release any
revisions to forward-looking statements in order to reflect new
information or subsequent events, circumstances or changes in
expectations.
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UNITED RENTALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In millions, except per share amounts)
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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2018
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2017
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2018
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2017
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Revenues:
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Equipment rentals
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$
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1,631
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$
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1,367
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$
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3,090
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$
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2,533
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Sales of rental equipment
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157
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133
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338
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239
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Sales of new equipment
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44
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47
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86
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86
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Contractor supplies sales
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24
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21
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42
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39
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Service and other revenues
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35
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29
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69
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56
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Total revenues
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1,891
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1,597
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3,625
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2,953
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Cost of revenues:
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Cost of equipment rentals, excluding depreciation
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620
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525
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1,212
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999
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Depreciation of rental equipment
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323
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266
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645
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514
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Cost of rental equipment sales
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92
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81
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199
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141
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Cost of new equipment sales
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38
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40
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75
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74
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Cost of contractor supplies sales
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16
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15
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28
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28
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Cost of service and other revenues
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20
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15
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38
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28
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Total cost of revenues
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1,109
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942
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2,197
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1,784
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Gross profit
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782
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655
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1,428
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1,169
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Selling, general and administrative expenses
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239
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218
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471
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411
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Merger related costs
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2
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14
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3
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16
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Restructuring charge
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4
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19
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6
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19
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Non-rental depreciation and amortization
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67
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64
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138
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126
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Operating income
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470
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340
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810
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597
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Interest expense, net
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112
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113
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221
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207
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Other income, net
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(1
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)
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(2
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)
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(2
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)
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—
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Income before provision for income taxes
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359
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229
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591
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390
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Provision for income taxes (1)
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89
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88
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138
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140
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Net income (1)
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$
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270
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$
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141
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$
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453
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$
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250
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Diluted earnings per share (1)
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$
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3.20
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$
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1.65
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$
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5.34
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$
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2.92
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(1)
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The three and six months ended June 30, 2018 reflect a reduction in
the U.S. federal corporate statutory tax rate from 35% to 21%
following the enactment of the Tax Cuts and Jobs Act in December
2017, which contributed an estimated $0.58 and $0.95 to diluted
earnings per share for the three and six months ended June 30, 2018,
respectively.
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UNITED RENTALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions)
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June 30, 2018
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December 31, 2017
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ASSETS
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Cash and cash equivalents
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$
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117
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$
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352
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Accounts receivable, net
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1,203
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1,233
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Inventory
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94
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75
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Prepaid expenses and other assets
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92
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112
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Total current assets
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1,506
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1,772
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Rental equipment, net
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8,213
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7,824
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Property and equipment, net
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480
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467
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Goodwill
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4,096
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4,082
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Other intangible assets, net
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798
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|
|
|
875
|
|
Other long-term assets
|
|
|
15
|
|
|
|
10
|
|
Total assets
|
|
|
$
|
15,108
|
|
|
|
$
|
15,030
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
Short-term debt and current maturities of long-term debt
|
|
|
$
|
900
|
|
|
|
$
|
723
|
|
Accounts payable
|
|
|
859
|
|
|
|
409
|
|
Accrued expenses and other liabilities
|
|
|
470
|
|
|
|
536
|
|
Total current liabilities
|
|
|
2,229
|
|
|
|
1,668
|
|
Long-term debt
|
|
|
8,086
|
|
|
|
8,717
|
|
Deferred taxes
|
|
|
1,509
|
|
|
|
1,419
|
|
Other long-term liabilities
|
|
|
120
|
|
|
|
120
|
|
Total liabilities
|
|
|
11,944
|
|
|
|
11,924
|
|
Common stock
|
|
|
1
|
|
|
|
1
|
|
Additional paid-in capital
|
|
|
2,351
|
|
|
|
2,356
|
|
Retained earnings
|
|
|
3,458
|
|
|
|
3,005
|
|
Treasury stock
|
|
|
(2,450
|
)
|
|
|
(2,105
|
)
|
Accumulated other comprehensive loss
|
|
|
(196
|
)
|
|
|
(151
|
)
|
Total stockholders’ equity
|
|
|
3,164
|
|
|
|
3,106
|
|
Total liabilities and stockholders’ equity
|
|
|
$
|
15,108
|
|
|
|
$
|
15,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNITED RENTALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In millions)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Cash Flows From Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
270
|
|
|
|
$
|
141
|
|
|
|
$
|
453
|
|
|
|
$
|
250
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
390
|
|
|
|
330
|
|
|
|
783
|
|
|
|
640
|
|
Amortization of deferred financing costs and original issue discounts
|
|
|
3
|
|
|
|
2
|
|
|
|
6
|
|
|
|
4
|
|
Gain on sales of rental equipment
|
|
|
(65
|
)
|
|
|
(52
|
)
|
|
|
(139
|
)
|
|
|
(98
|
)
|
Gain on sales of non-rental equipment
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
(3
|
)
|
|
|
(3
|
)
|
Gain on insurance proceeds from damaged equipment
|
|
|
(12
|
)
|
|
|
(7
|
)
|
|
|
(14
|
)
|
|
|
(8
|
)
|
Stock compensation expense, net
|
|
|
24
|
|
|
|
24
|
|
|
|
43
|
|
|
|
40
|
|
Merger related costs
|
|
|
2
|
|
|
|
14
|
|
|
|
3
|
|
|
|
16
|
|
Restructuring charge
|
|
|
4
|
|
|
|
19
|
|
|
|
6
|
|
|
|
19
|
|
Loss on repurchase/redemption of debt securities and amendment of
ABL facility
|
|
|
—
|
|
|
|
12
|
|
|
|
—
|
|
|
|
12
|
|
Increase in deferred taxes
|
|
|
56
|
|
|
|
30
|
|
|
|
93
|
|
|
|
40
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in accounts receivable
|
|
|
(51
|
)
|
|
|
(81
|
)
|
|
|
29
|
|
|
|
(16
|
)
|
(Increase) decrease in inventory
|
|
|
(10
|
)
|
|
|
1
|
|
|
|
(19
|
)
|
|
|
(5
|
)
|
(Increase) decrease in prepaid expenses and other assets
|
|
|
(17
|
)
|
|
|
(16
|
)
|
|
|
25
|
|
|
|
(7
|
)
|
Increase in accounts payable
|
|
|
348
|
|
|
|
290
|
|
|
|
451
|
|
|
|
429
|
|
Increase (decrease) in accrued expenses and other liabilities
|
|
|
67
|
|
|
|
2
|
|
|
|
(68
|
)
|
|
|
16
|
|
Net cash provided by operating activities
|
|
|
1,007
|
|
|
|
707
|
|
|
|
1,649
|
|
|
|
1,329
|
|
Cash Flows From Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of rental equipment
|
|
|
(946
|
)
|
|
|
(694
|
)
|
|
|
(1,226
|
)
|
|
|
(913
|
)
|
Purchases of non-rental equipment
|
|
|
(47
|
)
|
|
|
(33
|
)
|
|
|
(80
|
)
|
|
|
(55
|
)
|
Proceeds from sales of rental equipment
|
|
|
157
|
|
|
|
133
|
|
|
|
338
|
|
|
|
239
|
|
Proceeds from sales of non-rental equipment
|
|
|
4
|
|
|
|
4
|
|
|
|
8
|
|
|
|
6
|
|
Insurance proceeds from damaged equipment
|
|
|
12
|
|
|
|
7
|
|
|
|
14
|
|
|
|
8
|
|
Purchases of other companies, net of cash acquired
|
|
|
(6
|
)
|
|
|
(965
|
)
|
|
|
(58
|
)
|
|
|
(965
|
)
|
Purchases of investments
|
|
|
(1
|
)
|
|
|
(3
|
)
|
|
|
(1
|
)
|
|
|
(4
|
)
|
Net cash used in investing activities
|
|
|
(827
|
)
|
|
|
(1,551
|
)
|
|
|
(1,005
|
)
|
|
|
(1,684
|
)
|
Cash Flows From Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from debt
|
|
|
2,074
|
|
|
|
2,441
|
|
|
|
4,330
|
|
|
|
3,943
|
|
Payments of debt
|
|
|
(2,243
|
)
|
|
|
(1,604
|
)
|
|
|
(4,806
|
)
|
|
|
(3,543
|
)
|
Payments of financing costs
|
|
|
(1
|
)
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
(7
|
)
|
Proceeds from the exercise of common stock options
|
|
|
1
|
|
|
|
—
|
|
|
|
2
|
|
|
|
1
|
|
Common stock repurchased (1)
|
|
|
(169
|
)
|
|
|
(1
|
)
|
|
|
(395
|
)
|
|
|
(24
|
)
|
Net cash (used in) provided by financing activities
|
|
|
(338
|
)
|
|
|
836
|
|
|
|
(870
|
)
|
|
|
370
|
|
Effect of foreign exchange rates
|
|
|
(3
|
)
|
|
|
9
|
|
|
|
(9
|
)
|
|
|
11
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
(161
|
)
|
|
|
1
|
|
|
|
(235
|
)
|
|
|
26
|
|
Cash and cash equivalents at beginning of period
|
|
|
278
|
|
|
|
337
|
|
|
|
352
|
|
|
|
312
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
117
|
|
|
|
$
|
338
|
|
|
|
$
|
117
|
|
|
|
$
|
338
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for income taxes, net
|
|
|
$
|
29
|
|
|
|
$
|
58
|
|
|
|
$
|
39
|
|
|
|
$
|
59
|
|
Cash paid for interest
|
|
|
60
|
|
|
|
87
|
|
|
|
213
|
|
|
|
177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNITED RENTALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(continued)
|
|
|
|
(1)
|
|
As discussed above, we have an open $1.25 billion share repurchase
program that we intend to complete by the end of 2019. This program
commenced in July 2018 following the completion of our $1 billion
share repurchase program. The common stock repurchases include i)
shares repurchased pursuant to the $1 billion share repurchase
program and ii) shares withheld to satisfy tax withholding
obligations upon the vesting of restricted stock unit awards.
|
|
|
|
|
|
|
|
|
|
|
UNITED RENTALS, INC.
SEGMENT PERFORMANCE
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
|
2018
|
|
|
2017
|
|
|
Change
|
General Rentals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable segment equipment rentals revenue
|
|
|
$1,332
|
|
|
$1,143
|
|
|
16.5%
|
|
|
$2,533
|
|
|
$2,120
|
|
|
19.5%
|
Reportable segment equipment rentals gross profit
|
|
|
543
|
|
|
465
|
|
|
16.8%
|
|
|
969
|
|
|
825
|
|
|
17.5%
|
Reportable segment equipment rentals gross margin
|
|
|
40.8%
|
|
|
40.7%
|
|
|
10 bps
|
|
|
38.3%
|
|
|
38.9%
|
|
|
(60) bps
|
Trench, Power and Pump
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reportable segment equipment rentals revenue
|
|
|
$299
|
|
|
$224
|
|
|
33.5%
|
|
|
$557
|
|
|
$413
|
|
|
34.9%
|
Reportable segment equipment rentals gross profit
|
|
|
145
|
|
|
111
|
|
|
30.6%
|
|
|
264
|
|
|
195
|
|
|
35.4%
|
Reportable segment equipment rentals gross margin
|
|
|
48.5%
|
|
|
49.6%
|
|
|
(110) bps
|
|
|
47.4%
|
|
|
47.2%
|
|
|
20 bps
|
Total United Rentals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equipment rentals revenue
|
|
|
$1,631
|
|
|
$1,367
|
|
|
19.3%
|
|
|
$3,090
|
|
|
$2,533
|
|
|
22.0%
|
Total equipment rentals gross profit
|
|
|
688
|
|
|
576
|
|
|
19.4%
|
|
|
1,233
|
|
|
1,020
|
|
|
20.9%
|
Total equipment rentals gross margin
|
|
|
42.2%
|
|
|
42.1%
|
|
|
10 bps
|
|
|
39.9%
|
|
|
40.3%
|
|
|
(40) bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNITED RENTALS, INC.
DILUTED EARNINGS PER SHARE CALCULATION
(In millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common stockholders (1)
|
|
|
$
|
270
|
|
|
|
$
|
141
|
|
|
|
$
|
453
|
|
|
|
$
|
250
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator for basic earnings per share—weighted-average common
shares
|
|
|
83.5
|
|
|
|
84.6
|
|
|
|
83.9
|
|
|
|
84.5
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee stock options
|
|
|
0.4
|
|
|
|
0.4
|
|
|
|
0.4
|
|
|
|
0.4
|
Restricted stock units
|
|
|
0.3
|
|
|
|
0.4
|
|
|
|
0.4
|
|
|
|
0.5
|
Denominator for diluted earnings per share—adjusted
weighted-average common shares
|
|
|
84.2
|
|
|
|
85.4
|
|
|
|
84.7
|
|
|
|
85.4
|
Diluted earnings per share (1)
|
|
|
$
|
3.20
|
|
|
|
$
|
1.65
|
|
|
|
$
|
5.34
|
|
|
|
$
|
2.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The three and six months ended June 30, 2018 reflect a reduction in
the U.S. federal corporate statutory tax rate from 35% to 21%
following the enactment of the Tax Cuts and Jobs Act in December
2017, which contributed an estimated $0.58 and $0.95 to diluted
earnings per share for the three and six months ended June 30, 2018,
respectively.
|
|
|
|
|
|
UNITED RENTALS, INC.
|
ADJUSTED EARNINGS PER SHARE GAAP RECONCILIATION
|
|
We define “earnings per share – adjusted” as the sum of earnings per
share – GAAP, as reported plus the impact of the following special
items: merger related costs, merger related intangible asset
amortization, impact on depreciation related to acquired fleet and
property and equipment, impact of the fair value mark-up of acquired
fleet, restructuring charge and loss on repurchase/redemption of debt
securities and amendment of ABL facility. Management believes that
earnings per share - adjusted provides useful information concerning
future profitability. However, earnings per share - adjusted is not a
measure of financial performance under GAAP. Accordingly, earnings per
share - adjusted should not be considered an alternative to GAAP
earnings per share. The table below provides a reconciliation between
earnings per share – GAAP, as reported, and earnings per share –
adjusted.
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Earnings per share - GAAP, as reported (1)
|
|
|
$
|
3.20
|
|
|
|
$
|
1.65
|
|
|
|
$
|
5.34
|
|
|
|
$
|
2.92
|
|
After-tax impact of:
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger related costs (2)
|
|
|
0.02
|
|
|
|
0.09
|
|
|
|
0.03
|
|
|
|
0.11
|
|
Merger related intangible asset amortization (3)
|
|
|
0.37
|
|
|
|
0.30
|
|
|
|
0.76
|
|
|
|
0.57
|
|
Impact on depreciation related to acquired fleet and property and
equipment (4)
|
|
|
0.08
|
|
|
|
(0.03
|
)
|
|
|
0.17
|
|
|
|
(0.02
|
)
|
Impact of the fair value mark-up of acquired fleet (5)
|
|
|
0.15
|
|
|
|
0.13
|
|
|
|
0.36
|
|
|
|
0.19
|
|
Restructuring charge (6)
|
|
|
0.03
|
|
|
|
0.14
|
|
|
|
0.05
|
|
|
|
0.14
|
|
Loss on repurchase/redemption of debt securities and amendment of
ABL facility
|
|
|
—
|
|
|
|
0.09
|
|
|
|
—
|
|
|
|
0.09
|
|
Earnings per share - adjusted (1)
|
|
|
$
|
3.85
|
|
|
|
$
|
2.37
|
|
|
|
$
|
6.71
|
|
|
|
$
|
4.00
|
|
Tax rate applied to above adjustments (1)
|
|
|
25.3
|
%
|
|
|
38.5
|
%
|
|
|
25.3
|
%
|
|
|
38.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The three and six months ended June 30, 2018 reflect a reduction in
the U.S. federal corporate statutory tax rate from 35% to 21%
following the enactment of the Tax Cuts and Jobs Act in December
2017, which contributed an estimated $0.58 and $0.95, respectively,
to earnings per share-GAAP, and $0.70 and $1.20, respectively, to
earnings per share-adjusted, for the three and six months ended June
30, 2018. The tax rates applied to the adjustments reflect the
statutory rates in the applicable entities.
|
|
(2)
|
|
Reflects transaction costs associated with the NES, Neff and
BakerCorp acquisitions discussed above. As discussed above, the
BakerCorp acquisition is expected to close early in the third
quarter of 2018. We have made a number of acquisitions in the past
and may continue to make acquisitions in the future. Merger related
costs only include costs associated with major acquisitions that
significantly impact our operations. The historic acquisitions that
have included merger related costs are RSC, which had annual
revenues of approximately $1.5 billion prior to the acquisition, and
National Pump, which had annual revenues of over $200 million prior
to the acquisition. NES had annual revenues of approximately $369
million, Neff had annual revenues of approximately $413 million and
BakerCorp had annual revenues of approximately $295 million.
|
|
(3)
|
|
Reflects the amortization of the intangible assets acquired in the
RSC, National Pump, NES and Neff acquisitions.
|
|
(4)
|
|
Reflects the impact of extending the useful lives of equipment
acquired in the RSC, NES and Neff acquisitions, net of the impact of
additional depreciation associated with the fair value mark-up of
such equipment.
|
|
(5)
|
|
Reflects additional costs recorded in cost of rental equipment sales
associated with the fair value mark-up of rental equipment acquired
in the RSC, NES and Neff acquisitions and subsequently sold.
|
|
(6)
|
|
Primarily reflects severance and branch closure charges associated
with our closed restructuring programs and our current restructuring
program. We only include such costs that are part of a restructuring
program as restructuring charges. Since the first such restructuring
program was initiated in 2008, we have completed three restructuring
programs. We have cumulatively incurred total restructuring charges
of $290 million under our restructuring programs.
|
|
|
|
|
|
UNITED RENTALS, INC.
|
EBITDA AND ADJUSTED EBITDA GAAP RECONCILIATIONS
|
(In millions)
|
|
EBITDA represents the sum of net income, provision for income taxes,
interest expense, net, depreciation of rental equipment, and non-rental
depreciation and amortization. Adjusted EBITDA represents EBITDA plus
the sum of the merger related costs, restructuring charge, stock
compensation expense, net, and the impact of the fair value mark-up of
acquired fleet. These items are excluded from adjusted EBITDA internally
when evaluating our operating performance and for strategic planning and
forecasting purposes, and allow investors to make a more meaningful
comparison between our core business operating results over different
periods of time, as well as with those of other similar companies. The
EBITDA and adjusted EBITDA margins represent EBITDA or adjusted EBITDA
divided by total revenue. Management believes that EBITDA and adjusted
EBITDA, when viewed with the Company’s results under GAAP and the
accompanying reconciliation, provide useful information about operating
performance and period-over-period growth, and provide additional
information that is useful for evaluating the operating performance of
our core business without regard to potential distortions. Additionally,
management believes that EBITDA and adjusted EBITDA help investors gain
an understanding of the factors and trends affecting our ongoing cash
earnings, from which capital investments are made and debt is serviced.
The table below provides a reconciliation between net income and EBITDA
and adjusted EBITDA.
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Net income
|
|
|
$
|
270
|
|
|
|
$
|
141
|
|
|
|
$
|
453
|
|
|
|
$
|
250
|
Provision for income taxes
|
|
|
89
|
|
|
|
88
|
|
|
|
138
|
|
|
|
140
|
Interest expense, net
|
|
|
112
|
|
|
|
113
|
|
|
|
221
|
|
|
|
207
|
Depreciation of rental equipment
|
|
|
323
|
|
|
|
266
|
|
|
|
645
|
|
|
|
514
|
Non-rental depreciation and amortization
|
|
|
67
|
|
|
|
64
|
|
|
|
138
|
|
|
|
126
|
EBITDA (A)
|
|
|
$
|
861
|
|
|
|
$
|
672
|
|
|
|
$
|
1,595
|
|
|
|
$
|
1,237
|
Merger related costs (1)
|
|
|
2
|
|
|
|
14
|
|
|
|
3
|
|
|
|
16
|
Restructuring charge (2)
|
|
|
4
|
|
|
|
19
|
|
|
|
6
|
|
|
|
19
|
Stock compensation expense, net (3)
|
|
|
24
|
|
|
|
24
|
|
|
|
43
|
|
|
|
40
|
Impact of the fair value mark-up of acquired fleet (4)
|
|
|
16
|
|
|
|
18
|
|
|
|
40
|
|
|
|
26
|
Adjusted EBITDA (B)
|
|
|
$
|
907
|
|
|
|
$
|
747
|
|
|
|
$
|
1,687
|
|
|
|
$
|
1,338
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A)
|
|
Our EBITDA margin was 45.5% and 42.1% for the three months ended
June 30, 2018 and 2017, respectively, and 44.0% and 41.9% for the
six months ended June 30, 2018 and 2017, respectively.
|
B)
|
|
Our adjusted EBITDA margin was 48.0% and 46.8% for the three months
ended June 30, 2018 and 2017, respectively, and 46.5% and 45.3% for
the six months ended June 30, 2018 and 2017, respectively.
|
|
(1)
|
|
Reflects transaction costs associated with the NES, Neff and
BakerCorp acquisitions discussed above. As discussed above, the
BakerCorp acquisition is expected to close early in the third
quarter of 2018. We have made a number of acquisitions in the past
and may continue to make acquisitions in the future. Merger related
costs only include costs associated with major acquisitions that
significantly impact our operations. The historic acquisitions that
have included merger related costs are RSC, which had annual
revenues of approximately $1.5 billion prior to the acquisition, and
National Pump, which had annual revenues of over $200 million prior
to the acquisition. NES had annual revenues of approximately $369
million, Neff had annual revenues of approximately $413 million and
BakerCorp had annual revenues of approximately $295 million.
|
|
(2)
|
|
Primarily reflects severance and branch closure charges associated
with our closed restructuring programs and our current restructuring
program. We only include such costs that are part of a restructuring
program as restructuring charges. Since the first such restructuring
program was initiated in 2008, we have completed three restructuring
programs. We have cumulatively incurred total restructuring charges
of $290 million under our restructuring programs.
|
|
(3)
|
|
Represents non-cash, share-based payments associated with the
granting of equity instruments.
|
|
(4)
|
|
Reflects additional costs recorded in cost of rental equipment sales
associated with the fair value mark-up of rental equipment acquired
in the RSC, NES and Neff acquisitions and subsequently sold.
|
|
|
|
|
|
UNITED RENTALS, INC.
|
EBITDA AND ADJUSTED EBITDA GAAP RECONCILIATIONS (continued)
|
(In millions)
|
|
The table below provides a reconciliation between net cash provided by
operating activities and EBITDA and adjusted EBITDA.
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Net cash provided by operating activities
|
|
|
$
|
1,007
|
|
|
|
$
|
707
|
|
|
|
$
|
1,649
|
|
|
|
$
|
1,329
|
|
Adjustments for items included in net cash provided by operating
activities but excluded from the calculation of EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred financing costs and original issue discounts
|
|
|
(3
|
)
|
|
|
(2
|
)
|
|
|
(6
|
)
|
|
|
(4
|
)
|
Gain on sales of rental equipment
|
|
|
65
|
|
|
|
52
|
|
|
|
139
|
|
|
|
98
|
|
Gain on sales of non-rental equipment
|
|
|
2
|
|
|
|
2
|
|
|
|
3
|
|
|
|
3
|
|
Gain on insurance proceeds from damaged equipment
|
|
|
12
|
|
|
|
7
|
|
|
|
14
|
|
|
|
8
|
|
Merger related costs (1)
|
|
|
(2
|
)
|
|
|
(14
|
)
|
|
|
(3
|
)
|
|
|
(16
|
)
|
Restructuring charge (2)
|
|
|
(4
|
)
|
|
|
(19
|
)
|
|
|
(6
|
)
|
|
|
(19
|
)
|
Stock compensation expense, net (3)
|
|
|
(24
|
)
|
|
|
(24
|
)
|
|
|
(43
|
)
|
|
|
(40
|
)
|
Loss on repurchase/redemption of debt securities and amendment of
ABL facility
|
|
|
—
|
|
|
|
(12
|
)
|
|
|
—
|
|
|
|
(12
|
)
|
Changes in assets and liabilities
|
|
|
(281
|
)
|
|
|
(170
|
)
|
|
|
(404
|
)
|
|
|
(346
|
)
|
Cash paid for interest
|
|
|
60
|
|
|
|
87
|
|
|
|
213
|
|
|
|
177
|
|
Cash paid for income taxes, net
|
|
|
29
|
|
|
|
58
|
|
|
|
39
|
|
|
|
59
|
|
EBITDA
|
|
|
$
|
861
|
|
|
|
$
|
672
|
|
|
|
$
|
1,595
|
|
|
|
$
|
1,237
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger related costs (1)
|
|
|
2
|
|
|
|
14
|
|
|
|
3
|
|
|
|
16
|
|
Restructuring charge (2)
|
|
|
4
|
|
|
|
19
|
|
|
|
6
|
|
|
|
19
|
|
Stock compensation expense, net (3)
|
|
|
24
|
|
|
|
24
|
|
|
|
43
|
|
|
|
40
|
|
Impact of the fair value mark-up of acquired fleet (4)
|
|
|
16
|
|
|
|
18
|
|
|
|
40
|
|
|
|
26
|
|
Adjusted EBITDA
|
|
|
$
|
907
|
|
|
|
$
|
747
|
|
|
|
$
|
1,687
|
|
|
|
$
|
1,338
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Reflects transaction costs associated with the NES, Neff and
BakerCorp acquisitions discussed above. As discussed above, the
BakerCorp acquisition is expected to close early in the third
quarter of 2018. We have made a number of acquisitions in the past
and may continue to make acquisitions in the future. Merger related
costs only include costs associated with major acquisitions that
significantly impact our operations. The historic acquisitions that
have included merger related costs are RSC, which had annual
revenues of approximately $1.5 billion prior to the acquisition, and
National Pump, which had annual revenues of over $200 million prior
to the acquisition. NES had annual revenues of approximately $369
million, Neff had annual revenues of approximately $413 million and
BakerCorp had annual revenues of approximately $295 million.
|
|
(2)
|
|
Primarily reflects severance and branch closure charges associated
with our closed restructuring programs and our current restructuring
program. We only include such costs that are part of a restructuring
program as restructuring charges. Since the first such restructuring
program was initiated in 2008, we have completed three restructuring
programs. We have cumulatively incurred total restructuring charges
of $290 million under our restructuring programs.
|
|
(3)
|
|
Represents non-cash, share-based payments associated with the
granting of equity instruments.
|
|
(4)
|
|
Reflects additional costs recorded in cost of rental equipment sales
associated with the fair value mark-up of rental equipment acquired
in the RSC, NES and Neff acquisitions and subsequently sold.
|
|
|
|
|
|
UNITED RENTALS, INC.
|
FREE CASH FLOW GAAP RECONCILIATION
|
(In millions)
|
|
We define “free cash flow” as net cash provided by operating activities
less purchases of, and plus proceeds from, equipment. The equipment
purchases and proceeds are included in cash flows from investing
activities. Management believes that free cash flow provides useful
additional information concerning cash flow available to meet future
debt service obligations and working capital requirements. However, free
cash flow is not a measure of financial performance or liquidity under
GAAP. Accordingly, free cash flow should not be considered an
alternative to net income or cash flow from operating activities as an
indicator of operating performance or liquidity. The table below
provides a reconciliation between net cash provided by operating
activities and free cash flow.
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Net cash provided by operating activities
|
|
|
$
|
1,007
|
|
|
|
$
|
707
|
|
|
|
$
|
1,649
|
|
|
|
$
|
1,329
|
|
Purchases of rental equipment
|
|
|
(946
|
)
|
|
|
(694
|
)
|
|
|
(1,226
|
)
|
|
|
(913
|
)
|
Purchases of non-rental equipment
|
|
|
(47
|
)
|
|
|
(33
|
)
|
|
|
(80
|
)
|
|
|
(55
|
)
|
Proceeds from sales of rental equipment
|
|
|
157
|
|
|
|
133
|
|
|
|
338
|
|
|
|
239
|
|
Proceeds from sales of non-rental equipment
|
|
|
4
|
|
|
|
4
|
|
|
|
8
|
|
|
|
6
|
|
Insurance proceeds from damaged equipment
|
|
|
12
|
|
|
|
7
|
|
|
|
14
|
|
|
|
8
|
|
Free cash flow (1)
|
|
|
$
|
187
|
|
|
|
$
|
124
|
|
|
|
$
|
703
|
|
|
|
$
|
614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Free cash flow included aggregate merger and restructuring related
payments of $6 million and $29 million for the three months ended
June 30, 2018 and 2017, respectively, and $16 million and $31
million for the six months ended June 30, 2018 and 2017,
respectively.
|
|
|
|
|
The table below provides a reconciliation between 2018 forecasted net
cash provided by operating activities and free cash flow.
|
|
|
|
Net cash provided by operating activities
|
|
|
$2,675- $2,825
|
Purchases of rental equipment
|
|
|
$(1,900)-$(2,000)
|
Proceeds from sales of rental equipment
|
|
|
$600-$700
|
Purchases of non-rental equipment, net of proceeds from sales and
insurance proceeds from damaged equipment
|
|
|
$(75)-$(125)
|
Free cash flow (excluding the impact of merger and restructuring
related payments)
|
|
|
$1,300- $1,400
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180718005751/en/ Copyright Business Wire 2018
Source: Business Wire
(July 18, 2018 - 4:15 PM EDT)
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|