United Rentals announces Q3 2010 results

Oct. 22, 2010 — United Rentals has announced financial results for the third quarter 2010. Total revenue was $605 million, compared with $592 million for the same period last year, and rental revenue was $507 million, compared with $478 million for the same period last year. Operating income was $93 million, compared with $67 million for the same period last year.

On a GAAP EPS basis, the company reported third quarter 2010 net income of $23 million, or $0.33 per diluted share, compared with net income of $0 million, or $0.00 per diluted share, for the same period in 2009. Adjusted EPS for the quarter, which excludes the impact of special items, was $0.40 per diluted share, compared with $0.01 per diluted share the prior year. Adjusted EBITDA margin, which also excludes the impact of special items, was 35.7% for the quarter, compared with 31.1% in 2009.

Third Quarter 2010 Highlights
    •    Time utilization was 71.3%, an increase of 7.1 percentage points from third quarter last year, and a record high for the company. Rental rates declined 1.4% year over year, but improved 2.0% sequentially from the second quarter. Dollar utilization, which reflects the impact of time utilization and rental rates, increased 2.9 percentage points to 51.6%, compared to the same period last year.

    •    Free cash flow was $37 million for the quarter, compared with $123 million for the same period last year. The company raised its outlook for full year net rental capital expenditures (defined as purchases of rental equipment less the proceeds from sales of rental equipment) to a range of $180 million to $200 million, from its previous estimate of $160 million to $180 million, to service key accounts and meet increased demand. The company also reaffirmed its outlook for full year free cash flow of a range of $200 million to $225 million.

    •    SG&A expense decreased by $4 million, compared to the same period last year. The company has reaffirmed its outlook for full year SG&A expense reduction within a range of $40 million to $50 million.

    •    Cost of equipment rentals, excluding depreciation, increased by $12 million compared to the same period last year, reflecting higher transaction volume and equipment on rent. The company has updated its outlook for full year expense reduction to a range of $5 million to $15 million, from its previous estimate of $30 million to $50 million.

    •    The company sold $74 million of used fleet on an original equipment cost basis and generated a gross margin of 31.3%, compared with $100 million of used fleet sold at a gross margin of 7.3% for the same period last year.

For more information, please visit www.ur.com .