Thursday October 25, 6:00 am Eastern Time
Press Release
SOURCE: United Rentals, Inc.
United Rentals Reports Third Quarter Results
GREENWICH, Conn., Oct. 25 /PRNewswire/ -- United Rentals, Inc. (NYSE: URI - news) today announced financial results for the third quarter ended September 30, 2001. The Company reported revenues of $795 million compared with $859 million in the third quarter of 2000. Same store rental revenues grew 4% year over year. Rental revenues were 78.7% of total revenues, sales of rental equipment were 4.5%, and sales of other equipment and merchandise and other revenues were 16.8%. Sharing of equipment among branches generated 10.5% of third quarter rental revenues, compared with 10.9% in the third quarter of 2000. The Company's equipment utilization rate was 66.4%, compared with 68.7% in the year ago quarter. Rental rates declined 0.7% in the third quarter compared with the third quarter of 2000.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter were $276 million, compared with $304 million in the same period last year. Net income for the quarter was $62.1 million, compared with $75.4 million in the same period last year. Diluted earnings per share for the third quarter were $0.63, compared with $0.79 reported in last year's third quarter.
Bradley Jacobs, chairman and chief executive officer, said, ``The third quarter results were in line with our revised outlook and reflect the impact of the current economic downturn as well as our decision to sell less used equipment this year. Despite the economic slowdown, we generated 4% same store rental revenue growth, recorded solid EBITDA and operating margins, and repaid $61 million of debt. We also reduced our SG&A expenses by 10.9% on a year over year basis.''
For the nine-month period ended September 30, 2001, revenues were $2.18 billion, compared with $2.17 billion reported for the first nine months of 2000. EBITDA for the period was $701 million compared with $730 million in the same period last year. Net income for the nine-month period was $115 million, compared with $140 million reported in last year's first nine months. Diluted earnings per share were $1.22, excluding charges taken in the second quarter totaling $0.38, compared with $1.49 reported in the same nine-month period of 2000. Results for the nine months exclude charges of $54.8 million ($0.38 per diluted share).
The Company also announced that it has withdrawn a registration statement for an offering of common stock by the Colburn Music Fund.
The Company will conduct an investor conference call at 11:00 AM (EDT) today. Interested parties can participate by dialing 1-913-981-5522. The call will also be broadcast live on the Internet at vcall.com.
United Rentals, Inc. is the largest equipment rental company in North America, with an integrated network of more than 740 branches in 47 states, seven Canadian provinces, and Mexico. The Company's 15,000 employees serve over 1.4 million customers including construction and industrial companies, manufacturers, utilities, municipalities, homeowners and others. The Company offers for rent over 600 different types of equipment with a total original cost of approximately $3.6 billion. Additional information about United Rentals is available at the Company's web site at unitedrentals.com.
Certain statements contained in this press release are forward-looking in nature. These statements can be identified by the use of forward-looking terminology such as ``believes,'' ``expects,'' ``may,'' ``will,'' ``should,'' ``on track'' or ``anticipates'' or the negative thereof or comparable terminology, or by discussions of strategy. The Company's business and operations are subject to a variety of risks and uncertainties and, consequently, actual results may materially differ from those projected by any forward-looking statements. Factors that could cause actual results to differ from those projected include, but are not limited to, the following: (1) continuing unfavorable industry conditions could lead to a decrease in demand for the Company's equipment and to a decline in prices realized by the Company for its products and services, (2) governmental funding for highway and other construction projects may not reach expected levels, (3) the Company cannot be certain that it will have access to the additional capital that it may require or that its cost of capital will not increase, (4) the Company may be required to pay increased prices for acquisitions, and it may experience difficulty in integrating and deriving synergies from acquisitions, (5) companies that United Rentals acquires could have undiscovered liabilities, and (6) the Company is highly dependent on the services of its senior management. These risks and uncertainties, as well as others, are discussed in greater detail in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and its subsequent Quarterly Reports on Form 10-Q. The Company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made.
UNITED RENTALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(000's except per share data)
Three months ended Nine months ended
September 30 September 30
2001 2000 2001 2000
Revenues:
Equipment rentals $626,286 $610,499 $1,670,036 $1,522,131
Sales of rental
equipment 35,442 99,806 107,681 254,977
Sales of equipment
and merchandise and
other revenues 133,755 148,728 404,883 390,833
Total revenues 795,483 859,033 2,182,600 2,167,941
Cost of revenues:
Cost of equipment
rentals, excluding
depreciation 290,098 263,262 790,234 659,876
Depreciation of
rental equipment 81,508 87,502 239,862 246,537
Cost of rental
equipment sales 21,363 58,570 63,744 149,738
Cost of equipment
and merchandise sales
and other operating
costs 97,272 108,995 294,888 293,304
Total cost of revenues 490,241 518,329 1,388,728 1,349,455
Gross profit 305,242 340,704 793,872 818,486
Selling, general
and administrative
expenses 110,956 124,492 332,671 335,461
Restructuring charge 28,922
Non-rental depreciation
and amortization 27,051 21,889 80,289 62,610
Operating income 167,235 194,323 351,990 420,415
Interest expense 61,601 65,933 185,940 181,893
Other (income)
expense, net (438) (484) 6,497 (796)
Income before provision
for income taxes and
extraordinary item 106,072 128,874 159,553 239,318
Provision for
income taxes 44,020 53,483 69,154 99,317
Income before
extraordinary item 62,052 75,391 90,399 140,001
Extraordinary item -- -- 11,317 --
Net income $ 62,052 $ 75,391 $ 79,082 $140,001
Diluted earnings
per share $0.63(b) $0.79(b) $0.84(a) $1.49(b)
Weighted average
diluted shares
outstanding 103,515 99,533 93,990 99,407
(a) Diluted earnings per share was $1.22 for the nine months ended
September 30, 2001 before deducting $0.38 per share of charges for
restructuring expenses and debt refinancing.
(b) Diluted earnings per share for the three months ended September 30,
2001, and the three and nine months ended September 30, 2000 are
calculated by treating the Company's quarterly income preferred
securities on an as converted basis.
SOURCE: United Rentals, Inc. |
