Delaware Delaware |
001-14387 001-13663 |
06-1522496 06-1493538 |
||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
Five Greenwich Office Park Greenwich, Connecticut |
06831 |
|
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 7.01. | Regulation FD Disclosure. |
Item 9.01. | Financial Statements and Exhibits. |
99.1 | Press Release of United Rentals, Inc. |
UNITED RENTALS, INC. |
||||
By: | /s/ Jonathan M. Gottsegen | |||
Name: | Jonathan M. Gottsegen | |||
Title: | Senior Vice President, General Counsel and Corporate Secretary | |||
UNITED RENTALS (NORTH AMERICA), INC. |
||||
By: | /s/ Jonathan M. Gottsegen | |||
Name: | Jonathan M. Gottsegen | |||
Title: | Senior Vice President, General Counsel and Corporate Secretary |
Exhibit No. | Description | |
99.1
|
Press Release of United Rentals, Inc. |
![]() |
United Rentals, Inc. Five Greenwich Office Park Greenwich, CT 06831 Telephone: 203 622 3131 203 622 6080 unitedrentals.com |
| Rental revenue increased 16.4%, reflecting year-over-year increases of 6.1% in rental
rates and 13.8% in the volume of equipment on rent. The company has reaffirmed its outlook
for an increase in rental rates of at least 5% for the full year. |
||
| Time utilization was 69.0%, an increase of 3.6 percentage points from the same period
last year, and a new second quarter record for the company. The company has raised its
outlook for a full-year increase in time utilization to approximately 2.5 percentage points
year-over-year. |
||
| The company generated $41 million of proceeds from used equipment sales at a gross
margin of 31.7%, compared with $37 million of proceeds at a gross margin of 24.3% for the
same period last year. |
||
| Adjusted EBITDA was $221 million, an increase of $42 million compared with the same
period last year. Adjusted EBITDA margin was 35.1%, an increase of 3.0 percentage points
compared with the same period last year. |
2
3
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues: |
||||||||||||||||
Equipment rentals |
$ | 524 | $ | 450 | $ | 958 | $ | 830 | ||||||||
Sales of rental equipment |
41 | 37 | 73 | 72 | ||||||||||||
Sales of new equipment |
21 | 21 | 36 | 40 | ||||||||||||
Contractor supplies sales |
22 | 26 | 43 | 49 | ||||||||||||
Service and other revenues |
21 | 23 | 42 | 44 | ||||||||||||
Total revenues |
629 | 557 | 1,152 | 1,035 | ||||||||||||
Cost of revenues: |
||||||||||||||||
Cost of equipment rentals, excluding depreciation |
246 | 217 | 479 | 431 | ||||||||||||
Depreciation of rental equipment |
103 | 95 | 202 | 191 | ||||||||||||
Cost of rental equipment sales |
28 | 28 | 46 | 52 | ||||||||||||
Cost of new equipment sales |
17 | 18 | 29 | 34 | ||||||||||||
Cost of contractor supplies sales |
16 | 19 | 30 | 35 | ||||||||||||
Cost of service and other revenues |
8 | 9 | 17 | 18 | ||||||||||||
Total cost of revenues |
418 | 386 | 803 | 761 | ||||||||||||
Gross profit |
211 | 171 | 349 | 274 | ||||||||||||
Selling, general and administrative expenses |
100 | 90 | 195 | 176 | ||||||||||||
Restructuring charge |
2 | 6 | 3 | 12 | ||||||||||||
Non-rental depreciation and amortization |
14 | 16 | 26 | 29 | ||||||||||||
Operating income |
95 | 59 | 125 | 57 | ||||||||||||
Interest expense, net |
57 | 54 | 113 | 115 | ||||||||||||
Interest expense subordinated convertible
debentures |
2 | 2 | 4 | 4 | ||||||||||||
Other income, net |
(3 | ) | | (4 | ) | (1 | ) | |||||||||
Income (loss) from continuing operations before
provision (benefit) for income taxes |
39 | 3 | 12 | (61 | ) | |||||||||||
Provision (benefit) for income taxes |
11 | (9 | ) | 4 | (33 | ) | ||||||||||
Income (loss) from continuing operations |
28 | 12 | 8 | (28 | ) | |||||||||||
Loss from discontinued operation, net of taxes |
(1 | ) | | (1 | ) | | ||||||||||
Net income (loss) |
$ | 27 | $ | 12 | $ | 7 | $ | (28 | ) | |||||||
Diluted earnings (loss) per share: |
||||||||||||||||
Income (loss) from continuing operations |
$ | 0.38 | $ | 0.18 | $ | 0.10 | $ | (0.46 | ) | |||||||
Loss from discontinued operation |
(0.01 | ) | | (0.01 | ) | | ||||||||||
Net income (loss) |
$ | 0.37 | $ | 0.18 | $ | 0.09 | $ | (0.46 | ) | |||||||
4
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 58 | $ | 203 | ||||
Accounts receivable, net |
407 | 377 | ||||||
Inventory |
70 | 39 | ||||||
Prepaid expenses and other assets |
67 | 37 | ||||||
Deferred taxes |
71 | 69 | ||||||
Total current assets |
673 | 725 | ||||||
Rental equipment, net |
2,520 | 2,280 | ||||||
Property and equipment, net |
380 | 393 | ||||||
Goodwill and other intangible assets, net |
319 | 227 | ||||||
Other long-term assets |
60 | 68 | ||||||
Total assets |
$ | 3,952 | $ | 3,693 | ||||
LIABILITIES AND STOCKHOLDERS DEFICIT |
||||||||
Short-term debt and current maturities of long-term debt |
$ | 347 | $ | 229 | ||||
Accounts payable |
282 | 132 | ||||||
Accrued expenses and other liabilities |
211 | 208 | ||||||
Total current liabilities |
840 | 569 | ||||||
Long-term debt |
2,542 | 2,576 | ||||||
Subordinated convertible debentures |
87 | 124 | ||||||
Deferred taxes |
399 | 385 | ||||||
Other long-term liabilities |
60 | 59 | ||||||
Total liabilities |
3,928 | 3,713 | ||||||
Incremental convertible debt obligation (temporary equity) |
44 | | ||||||
Common stock |
1 | 1 | ||||||
Additional paid-in capital |
472 | 492 | ||||||
Accumulated deficit |
(593 | ) | (600 | ) | ||||
Accumulated other comprehensive income |
100 | 87 | ||||||
Total stockholders deficit |
(20 | ) | (20 | ) | ||||
Total liabilities and stockholders deficit |
$ | 3,952 | $ | 3,693 | ||||
5
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Cash Flows From Operating Activities: |
||||||||||||||||
Net income (loss) |
$ | 27 | $ | 12 | $ | 7 | $ | (28 | ) | |||||||
Adjustments to reconcile net income (loss) to net
cash provided by
operating activities: |
||||||||||||||||
Depreciation and amortization |
117 | 111 | 228 | 220 | ||||||||||||
Amortization of deferred financing costs and original
issue discounts |
6 | 5 | 11 | 11 | ||||||||||||
Gain on sales of rental equipment |
(13 | ) | (9 | ) | (27 | ) | (20 | ) | ||||||||
Gain on sales of non-rental equipment |
(1 | ) | | (1 | ) | (1 | ) | |||||||||
Stock compensation expense, net |
4 | 3 | 6 | 4 | ||||||||||||
Restructuring charge |
2 | 6 | 3 | 12 | ||||||||||||
Loss (gain) on repurchase/redemption of debt
securities |
| (1 | ) | | 3 | |||||||||||
Loss on retirement of subordinated
convertible debentures |
| | 1 | | ||||||||||||
Increase (decrease) in deferred taxes |
5 | (23 | ) | (4 | ) | (47 | ) | |||||||||
Changes in operating assets and liabilities: |
||||||||||||||||
Increase in accounts receivable |
(51 | ) | (24 | ) | (15 | ) | (7 | ) | ||||||||
Increase in inventory |
(6 | ) | (14 | ) | (30 | ) | (16 | ) | ||||||||
(Increase) decrease in prepaid expenses and other
assets |
(9 | ) | 18 | (15 | ) | 55 | ||||||||||
Increase in accounts payable |
57 | 51 | 147 | 61 | ||||||||||||
Increase (decrease) in accrued expenses and other
liabilities |
4 | (34 | ) | (15 | ) | (28 | ) | |||||||||
Net cash provided by operating activities |
142 | 101 | 296 | 219 | ||||||||||||
Cash Flows From Investing Activities: |
||||||||||||||||
Purchases of rental equipment |
(297 | ) | (125 | ) | (412 | ) | (174 | ) | ||||||||
Purchases of non-rental equipment |
(8 | ) | (7 | ) | (13 | ) | (12 | ) | ||||||||
Proceeds from sales of rental equipment |
41 | 37 | 73 | 72 | ||||||||||||
Proceeds from sales of non-rental equipment |
4 | 2 | 8 | 3 | ||||||||||||
Purchases of other companies |
(143 | ) | | (143 | ) | | ||||||||||
Net cash used in investing activities |
(403 | ) | (93 | ) | (487 | ) | (111 | ) | ||||||||
Cash Flows From Financing Activities: |
||||||||||||||||
Proceeds from debt |
536 | 445 | 1,107 | 1,090 | ||||||||||||
Payments of debt, including subordinated convertible
debentures |
(441 | ) | (435 | ) | (1,086 | ) | (1,332 | ) | ||||||||
Proceeds from the exercise of common stock options |
26 | | 30 | | ||||||||||||
Shares repurchased and retired |
| | (7 | ) | (1 | ) | ||||||||||
Cash paid in connection with convertible note hedge
transactions, net |
(9 | ) | | (5 | ) | | ||||||||||
Excess tax benefits from share-based payment
arrangements, net |
| | | (1 | ) | |||||||||||
Net cash provided by (used in) financing activities |
112 | 10 | 39 | (244 | ) | |||||||||||
Effect of foreign exchange rates |
2 | (8 | ) | 7 | (3 | ) | ||||||||||
Net (decrease) increase in cash and cash equivalents |
(147 | ) | 10 | (145 | ) | (139 | ) | |||||||||
Cash and cash equivalents at beginning of period |
205 | 20 | 203 | 169 | ||||||||||||
Cash and cash equivalents at end of period |
$ | 58 | $ | 30 | $ | 58 | $ | 30 | ||||||||
Supplemental disclosure of cash flow information: |
||||||||||||||||
Cash (paid) received for taxes, net |
$ | (5 | ) | $ | (3 | ) | $ | (16 | ) | $ | 50 | |||||
Cash paid for interest, including
subordinated convertible debentures |
64 | 88 | 98 | 121 |
6
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | |||||||||||||||||||
General Rentals |
||||||||||||||||||||||||
Reportable segment revenue |
$ | 577 | $ | 515 | 12.0 | % | $ | 1,061 | $ | 958 | 10.8 | % | ||||||||||||
Reportable segment
operating income |
84 | 56 | 50.0 | % | 110 | 57 | 93.0 | % | ||||||||||||||||
Reportable segment
operating margin |
14.6 | % | 10.9 | % | 3.7 | pp | 10.4 | % | 5.9 | % | 4.5 | pp | ||||||||||||
Trench Safety, Power &
HVAC |
||||||||||||||||||||||||
Reportable segment revenue |
$ | 52 | $ | 42 | 23.8 | % | $ | 91 | $ | 77 | 18.2 | % | ||||||||||||
Reportable segment
operating income |
13 | 9 | 44.4 | % | 18 | 12 | 50.0 | % | ||||||||||||||||
Reportable segment
operating margin |
25.0 | % | 21.4 | % | 3.6 | pp | 19.8 | % | 15.6 | % | 4.2 | pp | ||||||||||||
Total United Rentals |
||||||||||||||||||||||||
Total revenue |
$ | 629 | $ | 557 | 12.9 | % | $ | 1,152 | $ | 1,035 | 11.3 | % | ||||||||||||
Total segment operating
income (1) |
97 | 65 | 49.2 | % | 128 | 69 | 85.5 | % | ||||||||||||||||
Total segment operating
margin (1) |
15.4 | % | 11.7 | % | 3.7 | pp | 11.1 | % | 6.7 | % | 4.4 | pp |
(1) | Excludes unallocated restructuring charge. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Income (loss) from continuing operations |
$ | 28 | $ | 12 | $ | 8 | $ | (28 | ) | |||||||
Convertible
debt interest-1 7/8% notes |
| | | | ||||||||||||
Income (loss) from continuing operations
available to common stockholders |
28 | 12 | 8 | (28 | ) | |||||||||||
Loss from discontinued operation |
(1 | ) | | (1 | ) | | ||||||||||
Net income (loss) available to common
stockholders |
$ | 27 | $ | 12 | $ | 7 | $ | (28 | ) | |||||||
Weighted-average common shares |
62.5 | 60.5 | 61.7 | 60.4 | ||||||||||||
Employee stock options and warrants |
0.9 | 0.3 | 1.5 | | ||||||||||||
Convertible subordinated notes 1 7/8% |
1.0 | 5.3 | | | ||||||||||||
Convertible subordinated notes 4% |
9.1 | 1.0 | 9.4 | | ||||||||||||
Restricted stock units |
0.6 | 0.6 | 0.7 | | ||||||||||||
Weighted average diluted shares |
74.1 | 67.7 | 73.3 | 60.4 | ||||||||||||
Diluted earnings (loss) per share: |
||||||||||||||||
Income (loss) from continuing operations |
$ | 0.38 | $ | 0.18 | $ | 0.10 | $ | (0.46 | ) | |||||||
Loss from discontinued operation |
(0.01 | ) | | (0.01 | ) | | ||||||||||
Net income (loss) |
$ | 0.37 | $ | 0.18 | $ | 0.09 | $ | (0.46 | ) | |||||||
7
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Earnings (loss) per share from continuing
operations GAAP,
as reported |
$ | 0.38 | $ | 0.18 | $ | 0.10 | $ | (0.46 | ) | |||||||
After-tax impact of: |
||||||||||||||||
Restructuring charge (1) |
0.01 | 0.06 | 0.02 | 0.13 | ||||||||||||
(Gain) loss on repurchase/retirement of
debt securities and subordinated convertible debentures |
| (0.01 | ) | 0.01 | 0.03 | |||||||||||
Asset impairment charge (2) |
0.01 | 0.02 | 0.01 | 0.02 | ||||||||||||
Earnings (loss) per share from continuing
operations adjusted |
$ | 0.40 | $ | 0.25 | $ | 0.14 | $ | (0.28 | ) | |||||||
(1) | Relates to branch closure charges and severance costs. | |
(2) | Primarily write-offs of leasehold improvements and other fixed assets. |
8
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net income (loss) |
$ | 27 | $ | 12 | $ | 7 | $ | (28 | ) | |||||||
Loss from discontinued operation, net of taxes |
1 | | 1 | | ||||||||||||
Provision (benefit) for income taxes |
11 | (9 | ) | 4 | (33 | ) | ||||||||||
Interest expense, net |
57 | 54 | 113 | 115 | ||||||||||||
Interest expense subordinated convertible debentures |
2 | 2 | 4 | 4 | ||||||||||||
Depreciation of rental equipment |
103 | 95 | 202 | 191 | ||||||||||||
Non-rental depreciation and amortization |
14 | 16 | 26 | 29 | ||||||||||||
EBITDA (A) |
215 | 170 | 357 | 278 | ||||||||||||
Restructuring charge (1) |
2 | 6 | 3 | 12 | ||||||||||||
Stock compensation expense, net (2) |
4 | 3 | 6 | 4 | ||||||||||||
Adjusted EBITDA (B) |
$ | 221 | $ | 179 | $ | 366 | $ | 294 | ||||||||
(A) | Our EBITDA margin was 34.2% and 30.5% for the three months ended June 30, 2011 and 2010, respectively, and
31.0% and 26.9% for the six months ended June 30, 2011 and 2010, respectively. |
|
(B) | Our adjusted EBITDA margin was 35.1% and 32.1% for the three months ended June 30, 2011 and 2010,
respectively, and 31.8% and 28.4% for the six months ended June 30, 2011 and 2010, respectively. |
|
(1) | Relates to branch closure charges and severance costs. |
|
(2) | Represents non-cash, share-based payments associated with the granting of equity instruments. |
9
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net cash provided by operating activities |
$ | 142 | $ | 101 | $ | 296 | $ | 219 | ||||||||
Adjustments for items included in net cash provided by
operating
activities but excluded from the calculation of EBITDA: |
||||||||||||||||
Loss from discontinued operation, net of taxes |
1 | | 1 | | ||||||||||||
Amortization of deferred financing costs and original
issue discounts |
(6 | ) | (5 | ) | (11 | ) | (11 | ) | ||||||||
Gain on sales of rental equipment |
13 | 9 | 27 | 20 | ||||||||||||
Gain on sales of non-rental equipment |
1 | | 1 | 1 | ||||||||||||
Restructuring charge (1) |
(2 | ) | (6 | ) | (3 | ) | (12 | ) | ||||||||
Stock compensation expense, net (2) |
(4 | ) | (3 | ) | (6 | ) | (4 | ) | ||||||||
(Loss) gain on repurchase/redemption of debt securities |
| 1 | | (3 | ) | |||||||||||
Loss on retirement of subordinated convertible debentures |
| | (1 | ) | | |||||||||||
Changes in assets and liabilities |
1 | (18 | ) | (61 | ) | (3 | ) | |||||||||
Cash paid for interest, including subordinated
convertible debentures |
64 | 88 | 98 | 121 | ||||||||||||
Cash paid (received) for taxes, net |
5 | 3 | 16 | (50 | ) | |||||||||||
EBITDA |
215 | 170 | 357 | 278 | ||||||||||||
Add back: |
||||||||||||||||
Restructuring charge (1) |
2 | 6 | 3 | 12 | ||||||||||||
Stock compensation expense, net (2) |
4 | 3 | 6 | 4 | ||||||||||||
Adjusted EBITDA |
$ | 221 | $ | 179 | $ | 366 | $ | 294 | ||||||||
(1) | Relates to branch closure charges and severance costs. |
|
(2) | Represents non-cash, share-based payments associated with the granting of
equity instruments. |
10
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net cash provided by operating activities |
$ | 142 | $ | 101 | $ | 296 | $ | 219 | ||||||||
Purchases of rental equipment |
(297 | ) | (125 | ) | (412 | ) | (174 | ) | ||||||||
Purchases of non-rental equipment |
(8 | ) | (7 | ) | (13 | ) | (12 | ) | ||||||||
Proceeds from sales of rental equipment |
41 | 37 | 73 | 72 | ||||||||||||
Proceeds from sales of non-rental equipment |
4 | 2 | 8 | 3 | ||||||||||||
Excess tax benefits from share-based payment
arrangements, net |
| | | (1 | ) | |||||||||||
Free cash flow |
$ | (118 | ) | $ | 8 | $ | (48 | ) | $ | 107 | ||||||
11
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