EX-99.1 2 dex991.txt PRESS RELEASE DATED APRIL 27, 2001 Exhibit 99.1 [LOGO] United Rentals ------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE UNITED RENTALS REPORTS FIRST QUARTER RESULTS IN LINE WITH EXPECTATIONS GREENWICH, CT, April 27, 2001 - United Rentals, Inc. (NYSE: URI) today announced financial results for the first quarter ended March 31, 2001. The Company reported revenues of $619 million, a 6.9% increase over the $579 million reported for the first quarter of 2000. Rental revenues were 74.5% of total revenues, sales of rental equipment were 6.3%, and sales of equipment and merchandise and other revenues were 19.2%. Same store rental revenues increased 8.2% year over year. Net income for the quarter was $3.4 million, compared to $17.4 million in the same period last year. Diluted earnings per share were $0.04, compared with $0.19 reported in last year's first quarter. The results reflect the Company's planned reduction in rental equipment sales this year, as well as greater seasonality due to the significant increase in the Company's traffic control business. Equipment utilization in the quarter was 53.3%, and sharing of equipment among branches accounted for 9.8% of rental revenues. Bradley Jacobs, chairman and chief executive officer, said, "We are pleased with our results for the first quarter, which were in line with analysts' expectations. Our rental revenues were up 15.3% compared to last year. We raised rental rates for the fifth consecutive quarter, achieving a 1.6% year over year increase. Since the beginning of the year, we've added 228 new National Accounts, bringing the total number of companies that have signed agreements with us to over 1,400. "We completed three significant financings earlier this month: a $750 million term loan, a $750 million revolving credit facility, and a $450 million senior unsecured note offering. This $1.95 billion of new capital replaces our prior credit facility and term loans, further strengthens our balance sheet and gives us greater flexibility to grow the business." The Company will conduct an investor conference call at 11:00 AM EDT today. Interested parties can participate in this call by dialing 1-913-981-5509. The conference call will also be broadcast live over the Internet at www.vcall.com, and a replay of the call will be available to all investors on the Company's web site at www.unitedrentals.com for 10 days beginning shortly after the conference call. United Rentals, Inc. is the largest equipment rental company in North America, with an integrated network of more than 750 locations in 47 states, seven Canadian provinces, and Mexico. The Company serves over 1.2 million customers including construction and industrial companies, manufacturers, municipalities, homeowners and others. The Company offers for rent over 600 different types of equipment with a total original cost of approximately $3.5 billion. Additional information about United Rentals is available at the Company's web site at www.unitedrentals.com. - more - 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," "projects," "may," "will," "should," "on track" or "anticipate" 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) unfavorable industry conditions could lead to a decrease in demand for the Company's equipment and to a decline in prices and rental rates, (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) acquisitions may become more expensive, may have undisclosed liabilities and may be more difficult to integrate, and (5) 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. # # # Investor contact: Media contact: Robert Miner Brandy Bergman United Rentals, Inc. Citigate Sard Verbinnen (203) 622-3131 (212) 687-8080 bminer@ur.com bbergman@sardverb.com UNITED RENTALS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (000's, except per share data)
Three months Three months ended ended March 31, 2001 March 31, 2000 -------------- -------------- Revenues: Equipment rentals $461,382 $400,098 Sales of rental equipment 39,122 70,332 Sales of equipment and merchandise and other revenues 118,600 108,532 ------- -------- Total revenues 619,104 578,962 Cost of revenues: Cost of equipment rentals, excluding depreciation 230,033 174,300 Depreciation of rental equipment 76,801 73,503 Cost of rental equipment sales 23,076 41,086 Cost of equipment and merchandise sales and other operating costs 86,627 84,089 -------- -------- Total cost of revenues 416,537 372,978 ------- ------- Gross profit 202,567 205,984 Selling, general and administrative expenses 108,893 101,850 Non-rental depreciation and amortization 26,107 20,018 -------- -------- Operating income 67,567 84,116 Interest expense 62,405 54,558 Other (income) expense, net (670) (204) --------- --------- Income before provision for income taxes 5,832 29,762 Provision for income taxes 2,420 12,351 -------- -------- Net income $3,412 $17,411 ======== ======= Diluted earnings per share $0.04 $0.19 ===== ===== Weighted average diluted shares outstanding 91,609 92,851