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United Rentals Q1 results: $523 million total revenue

April 21, 2011 |

United Rentals Inc. announced financial results on April 19 for the first quarter 2011. Total revenue was $523 million and rental revenue was $434 million, compared with $478 million and $380 million, respectively, for the same period last year.

On a GAAP basis, the company reported a first quarter 2011 net loss of $20 million, or $0.34 per diluted share, compared with a net loss of $40 million, or $0.67 per diluted share, for the same period in 2010. Adjusted EPS for the quarter, which excludes the impact of special items, was a loss of $0.32 per diluted share, compared with a loss of $0.57 per diluted share the prior year. The effective tax rate for the quarter was 25.9 percent

First Quarter 2011 Highlights

Rental revenue increased 14.2 percent, reflecting year-over-year increases of 4.2 percent in rental rates and 12.8 percent in the volume of equipment on rent. The company has reaffirmed its outlook for an increase in rental rates of at least 5 percent for the full year.
Time utilization was 62.4 percent, an increase of 6.2 percentage points from the same period last year, and a first quarter record for the company. The company has reaffirmed its outlook for an increase in time utilization for the full year of about 1 percentage point.
The company generated $32 million of proceeds from used equipment sales at a gross margin of 43.8 percent, compared with $35 million of proceeds at a gross margin of 31.4 percent for the same period last year.
Adjusted EBITDA was $145 million, an increase of $30 million compared with the same period last year. Adjusted EBITDA margin was 27.7%, an increase of 3.6 percentage points compared with the same period last year.

CEO Comments

In a written statement announcing the first-quarter results, United Rentals CEO Michael Kneeland, noted the following: “We have started the year with a very solid performance that includes rate improvement in all operating regions and record first quarter time utilization, as well as stronger gross margins on every major revenue stream. Once again we outpaced our end markets with significant rental revenue growth at a very early stage in the recovery. As demand for our services increases, we are focused on attaining the optimal balance of rate and utilization to drive returns.”