EX-99.1 2 dex991.txt PRESS RELEASE ISSUED BY UNITED RENTALS, INC. Exhibit 99.1 [LOGO]United Rentals ------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE --------------------- UNITED RENTALS REPORTS SECOND QUARTER RESULTS GREENWICH, CT, July 25, 2001 - United Rentals, Inc. (NYSE:URI) today announced financial results for the second quarter ended June 30, 2001. The Company reported revenues of $768 million compared with $730 million reported for the second quarter of 2000. Rental revenues were 75.8% of total revenues, sales of rental equipment were 4.3%, and sales of other equipment and merchandise and other revenues were 19.9%. Sharing of equipment among branches generated 10.7% of second quarter rental revenues, up from 10.3% in the second quarter of 2000. The Company's equipment utilization rate in the quarter was 63.9%, up from 62.8% in the year ago period. Same store rental revenue grew 7.9% compared with the year ago quarter. Rental rates declined 0.9% in the second quarter compared with the second quarter of 2000. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter were $255 million, compared with $248 million in the same period last year. Net income for the quarter was $49.4 million, compared with $47.2 million in the same period last year. Diluted earnings per share for the second quarter were $0.52, compared with $0.51 reported in last year's second quarter. Results for the quarter exclude a $28.9 million charge ($0.20 per diluted share) for restructuring expenses and a $25.9 million charge for debt refinancing ($0.18 per diluted share). The weighted average number of fully diluted shares during the second quarter was 94.2 million shares, compared with 92.0 million shares a year ago. Bradley Jacobs, chairman and chief executive officer, said, "The results reported today demonstrate our ability to grow the business even in a challenging economic climate. Our same store rental revenue, equipment utilization and sharing of equipment between branches all increased on a year- over-year basis. We also closed 18 under-performing branches and are in the process of closing an additional 13 branches. During the quarter, we expanded our securitized receivables line of credit from $100 million to $250 million at a current interest rate of 4.6%." For the six-month period ended June 30, 2001, revenues were $1.39 billion, compared with $1.31 billion reported for the first six months of 2000. EBITDA for the period was $425 million compared with $426 million in the same period last year. Net income for the six-month period was $52.8 million in 2001 compared with $64.6 million reported in last year's first six months. Diluted earnings per share were $0.57, compared with $0.70 reported in the same six- month period of 2000. Results for the six months exclude a $28.9 million charge ($0.21 per diluted share) for restructuring expenses and a $25.9 million charge for debt refinancing ($0.18 per diluted share). The weighted average number of diluted shares outstanding for the first six months of 2001 was 92.9 million shares, compared with 92.4 million shares in the same period last year. The Company will conduct an investor conference call at 11:00 AM EDT today. Interested parties can participate in this call by dialing 1-913-981-5515. 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 more than 740 locations in 47 states, seven Canadian provinces, and Mexico. The Company's 15,000 employees serve over 1.2 million customers, including construction and industrial companies, manufacturers, utilities, municipalities, homeowners and others. Additional information about United Rentals is available at the Company's web site at http://www.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," "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. # # # Contact: Fred Bratman Vice President, Corporate Communications United Rentals, Inc. (203) 618-7323 fbratman@ur.com UNITED RENTALS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (000's except per share data)
Three months ended Six months ended June 30 June 30 2001 2000 2001 2000 ---- ---- ---- ---- Revenues: Equipment rentals $582,368 $511,534 $1,043,750 $ 911,632 Sales of rental equipment 33,117 84,839 72,239 155,171 Sales of equipment and merchandise and other revenues 152,528 133,573 271,128 242,105 -------- -------- ---------- ---------- Total revenues 768,013 729,946 1,387,117 1,308,908 Cost of revenues: Cost of equipment rentals, excluding depreciation 270,103 222,314 500,136 396,614 Depreciation of rental equipment 81,553 85,532 158,354 159,035 Cost of rental equipment sales 19,305 50,082 42,381 91,168 Cost of equipment and merchandise sales and other operating costs 110,989 100,220 197,616 184,309 -------- -------- ---------- ---------- Total cost of revenues 481,950 458,148 898,487 831,126 -------- -------- ---------- ---------- Gross profit 286,063 271,798 488,630 477,782 Selling, general and administrative expenses 112,822 109,119 221,715 210,969 Restructuring charge 28,922 28,922 Non-rental depreciation and amortization 27,131 20,703 53,238 40,721 -------- -------- ---------- ---------- Operating income 117,188 141,976 184,755 226,092 Interest expense 61,934 61,402 124,339 115,960 Other (income) expense, net 7,605 (108) 6,935 (312) -------- -------- ---------- ---------- Income before provision for income taxes and extraordinary item 47,649 80,682 53,481 110,444 Provision for income taxes 22,714 33,483 25,134 45,834 -------- -------- ---------- ---------- Income before extraordinary item 24,935 47,199 28,347 64,610 Extraordinary item 11,317 11,317 -------- -------- ---------- ---------- Net income $ 13,618 $ 47,199 $ 17,030 $ 64,610 ======== ======== ========== ========== Diluted earnings per share before extraordinary item $ 0.26 $ 0.51 $ 0.31 $ 0.70 ======== ======== ========== ========== Diluted earnings per share $ 0.14 (a) $ 0.51 $ 0.18 (a) $ 0.70 ======== ======== ========== ========== Weighted average diluted shares outstanding 94,155 91,958 92,932 92,423
(a) Diluted earnings per share were $0.52 and $0.57 for the three months and six months ended June 30, 2001 before deducting $0.38 and $0.39 per share, respectively, of charges for restructuring expenses and debt refinancing.