Record Utilization, Rising Rates Slow the Bleeding at United Rentals

Adjusted EBITDA and adjusted EBITDA margin were $181 million and 30.3%, respectively, for the quarter, compared with $149 million and 26.8%, respectively, for the same period in 2009.

For the full year 2010, total revenue was $2.2 billion and rental revenue was $1.8 billion, compared with $2.4 billion and $1.8 billion, respectively, for the full year 2009. On a GAAP basis, the company reported a loss from continuing operations of $22 million, or $0.38 per diluted share, compared with a loss of $60 million, or $0.98 per diluted share, for 2009. On an adjusted basis, excluding the impact of special items, EPS for the full year 2010 was income of $0.33 per diluted share, compared with a loss of $0.76 per diluted share the prior year. The effective tax rate for 2010 was 65.1%.

Adjusted EBITDA and adjusted EBITDA margin were $691 million and 30.9%, respectively, for 2010, compared with $628 million and 26.6%, respectively, for 2009.

The company’s EPS, adjusted EPS, adjusted EBITDA and adjusted EBITDA margin for the fourth quarter and full year 2010 were all negatively impacted by the $18 million non-cash charge related to the providing self-insurance reserves.

For full year 2010, free cash flow, a non-GAAP measure, was $227 million, compared with free cash flow of $367 million for full year 2009. The year-over-year decrease in free cash flow was largely the result of an increase in net rental capital expenditures.

The size of the rental fleet, as measured by the original equipment cost, was $3.79 billion at December 31, 2010, and $3.76 billion at December 31, 2009. The age of the rental fleet was 47.7 months on a unit-weighted basis at December 31, 2010, compared with 42.4 months at December 31, 2009.

United Rentals, Inc. is the largest equipment rental company in the world, with an integrated network of 531 rental locations in 48 states and 10 Canadian provinces. The company’s approximately 7,300 employees serve construction and industrial customers, utilities, municipalities, homeowners and others. The company offers for rent approximately 2,900 classes of equipment. United Rentals is a member of the Standard & Poor’s MidCap 400 Index and the Russell 2000 Index. Additional information about United Rentals is available at unitedrentals.com.