EX-99.1 3 dex991.txt PRESS RELEASE ISSUED BY UNITED RENTALS Exhibit 99.1 [LOGO OF UNITED RENTALS] -------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE --------------------- UNITED RENTALS REPORTS FIRST QUARTER RESULTS GREENWICH, CT, April 24, 2002 - United Rentals, Inc. (NYSE: URI) today announced financial results for the first quarter ended March 31, 2002. The Company reported revenues of $599 million, compared to $619 million reported for the first quarter of 2001. Rental revenues were 74.5% of total 2002 revenues, sales of rental equipment were 6.5%, and sales of equipment and merchandise and other revenues were 19.0%. Same-store rental revenues decreased 2.4% year over year. Net income for the quarter, before a pre-tax charge of $349 million for goodwill impairment, was $7.6 million, or $0.08 per diluted share, compared with net income of $3.4 million, or $0.04 per diluted share ($12.7 million, or $0.14 per diluted share, if goodwill were accounted for under newly effective FAS 142), for the same period last year. Equipment utilization in the quarter was 49.6% compared to 53.3% in last year's first quarter, and sharing of equipment among branches accounted for 10.2% of rental revenues compared with 9.8% in last year's first quarter. Rental rates were down 3.5% compared to the same period last year. Bradley Jacobs, chairman and chief executive officer, said, "Our results for the first quarter were in line with our forecasts for a slow first half. Same-store rental revenue eased 2.4%, notwithstanding that non-residential construction was down about 17%, according to the most recent data from the U.S. Department of Commerce. The results also reflect our continuing cost cutting efforts that translated into a $10.4 million reduction in SG&A for the quarter year over year. This is the third consecutive quarter in which we've reduced our overhead. "We continue to forecast an improved second half as the anticipated economic recovery comes into place, and a return to strong revenue growth in 2003 once the full impact of the economic recovery is felt. About 75% of our cost of rentals is fixed or semi-variable, and this significant operating leverage should enable us to resume vigorous earnings growth when revenues increase. "During the quarter we acquired S&R Equipment, with six aerial lift equipment locations in Ohio, Indiana and Michigan and about $40 million in annual revenues. We will continue to consider additional accretive acquisitions." The Company will conduct an investor conference call at 11:00 AM (EDT) today. Interested parties can participate by dialing 1-719-457-2617. The conference call will also be broadcast live over the Internet at www.vcall.com ------------- and on the company's web site at www.unitedrentals.com. --------------------- United Rentals, Inc. is the largest equipment rental company in North America, with an integrated network of 744 locations in 47 states, seven Canadian provinces, and Mexico. The Company serves more than 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 $3.5 billion. Additional information about United Rentals is available at the Company's web site at www.unitedrentals.com. --------------------- Certain statements contained in this presentation are forward-looking in nature. These statements can be identified by the use of forward-looking terminology such as "believes," "expects," "projects," "forecasts," "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) unfavorable economic and industry conditions can reduce demand and prices for the Company's products and services, (2) governmental funding for highway and other construction projects may not reach expected levels, (3) the Company may not have access to capital that it may require, and (4) any companies that United Rentals acquires could have undiscovered liabilities and may be difficult to integrate. 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. 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. # # # Contact: Fred Bratman Vice President, Corporate Communications United Rentals, Inc. (203) 618-7323 fbratman@ur.com (Financial table attached) UNITED RENTALS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (000's, except per share data)
Three months ended Three months ended March 31, 2002 March 31, 2001 -------------- -------------- Revenues: Equipment rentals $446,288 $461,382 Sales of rental equipment 39,130 39,122 Sales of equipment and merchandise and other revenues 113,547 118,600 --------- --------- Total revenues 598,965 619,104 Cost of revenues: Cost of equipment rentals, excluding depreciation 235,562 230,033 Depreciation of rental equipment 78,050 76,801 Cost of rental equipment sales 25,132 23,076 Cost of equipment and merchandise sales and other operating costs 81,013 86,627 --------- --------- Total cost of revenues 419,757 416,537 --------- --------- Gross profit 179,208 202,567 Selling, general and administrative expenses 98,495 108,893 Non-rental depreciation and amortization 13,884 26,107 --------- --------- Operating income 66,829 67,567 Interest expense 54,677 62,405 Other (income) expense, net (280) (670) --------- --------- Income before provision for income taxes and cumulative effect of change in accounting principle 12,432 5,832 Provision for income taxes 4,848 2,420 --------- --------- Net income before cumulative effect of change in accounting principle 7,584 3,412 Cumulative effect of change in accounting principle, net of tax (288,339) --------- --------- Net income $(280,755) $3,412 (a) ========= ====== Diluted earnings per share before cumulative effect of change in accounting principle $0.08 $0.04 ===== ===== Diluted earnings per share $(2.88) $0.04 (a) ====== ===== Weighted average diluted shares outstanding 97,341 91,609
(a) Net income and diluted earnings per share would have been $12,735 and $0.14, respectively, if goodwill were accounted for under newly effective FAS 142.