United Q4 Rental Revenues up 18.5%, Rates Increase 6% from 2010

Rental revenue increased 18.5% for the fourth quarter 2011, compared with the fourth quarter of the prior year, reflecting year-over-year increases of 6.7% in rental rates and 15.1% in the volume of equipment on rent. For the full year, rental rates increased 6.1% from 2010.

520pxunited Rentals Logo Svg 10618518
United Rentals 10893270

United Rentals Inc. has announced financial results for the fourth quarter and full year 2011. For the fourth quarter, total revenues were $746 million and rental revenue was $589 million, compared with $597 million and $497 million, respectively, for 2010. For the full year 2011, total revenues were $2.6 billion and rental revenue was $2.2 billion, compared with $2.2 billion and $1.8 billion, respectively, for 2010.

For the fourth quarter 2011, adjusted EBITDA, which excludes the impact of special items¹, was $281 million and adjusted EBITDA margin was 37.7%, an increase of $100 million, or 55.2%, and 7.4 percentage points from the fourth quarter 2010. For the full year 2011, adjusted EBITDA was $929 million and adjusted EBITDA margin was 35.6%, an increase of $238 million, or 34.4%, and 4.7 percentage points from last year. The company’s EBITDA and adjusted EBITDA for the fourth quarter and full year 2011 include an $8 million benefit related to the reduction of the company’s self-insurance reserves, as compared to an $18 million charge in the fourth quarter and full year 2010.

2011 Highlights

  • For the fourth quarter 2011, on a GAAP basis, the company reported income from continuing operations of $28 million, or $0.39 per diluted share, compared with a loss of $17 million, or $0.29 per diluted share, for the same period in 2010. On an adjusted basis, excluding the impact of special items², EPS for the fourth quarter 2011 was $0.82 per diluted share, compared with $0.16 per diluted share in 2010. The effective tax rate for the fourth quarter 2011 was 50.0%.
  • Rental revenue increased 18.5% for the fourth quarter 2011, compared with the fourth quarter of the prior year, reflecting year-over-year increases of 6.7% in rental rates and 15.1% in the volume of equipment on rent. For the full year, rental rates increased 6.1% from 2010.
  • Time utilization for the fourth quarter 2011 increased 1.5 percentage points year-over-year to 70.8%, a fourth quarter record for the company. Time utilization for the full year 2011 was 69.1%, an increase of 3.5 percentage points and a full year record for the company.
  • Free cash flow was $23 million for the full year 2011, compared with $227 million for 2010. Full year net rental capital expenditures (defined as purchases of rental equipment less the proceeds from sales of rental equipment) were $566 million in 2011, compared with $202 million in 2010.
  • For the full year 2011, the company recognized $208 million from sales of rental equipment at a gross margin of 31.7%, compared with $144 million in sales at a gross margin of 28.5% last year.

For more, visit United Rentals.

Latest