United Rentals North America 8-K Global Capital Goods Conference 2005

Goldman Sachs

Global Capital Goods Conference 2005

November 2, 2005

Exhibit 99.1

Note: This presentation provides information about free cash flow, which is a 

non-GAAP

measure,

and includes a reconciliation between free cash flow and GAAP cash flow from operations.

2

Introductory Information

Unless

otherwise

specified,

the

information

in

this

presentation,

including

forward

looking

statements,

is

as

of

the

date

of

our

most

recent

quarterly

public

investor

conference

call

and

should

not

be

construed

as

an

update

of

such

information.

The

company’s

results

for

2004

and

the

third

quarter

and

first

nine

months

of

2005

have

not

been

finalized

and,

consequently,

the

results

and

other

data

for

these

periods

are

preliminary

and

subject

to

change.

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,"

"plans,"

"intends,"

"projects,"

"forecasts,"

"may,"

"will,"

"should,"

"on

track"

or

"anticipates"

or

the

negative

thereof

or

comparable

terminology,

or

by

discussions

of

strategy

or

outlook.

The

company's

business

and

operations

are

subject

to

a

variety

of

risks

and

uncertainties

and,

consequently,

actual

results

may

differ

materially

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,

(4)

any

companies

that

United

Rentals

acquires

could

have

undiscovered

liabilities

and

may

be

difficult

to

integrate,

(5)

rates

may

increase

less

than

anticipated

or

costs

may

increase

more

than

anticipated,

(6)

the

audit

of

the

company’s

2004

results

has

not

yet

been

completed

and,

accordingly,

previously

announced

data

for

2004

are

preliminary

and

subject

to

change,

(7)

the

company’s

results

for

the

first

nine

months

of

2005

have

not

been

finalized

and,

consequently,

are

preliminary

and

subject

to

change,

(8)

the

evaluation

and

testing

of

the

company’s

internal

controls

over

financial

reporting

have

not

yet

been

completed

and

additional

material

weaknesses

may

be

identified,

(9)

the

company

may

incur

significant

expenses

in

connection

with

the

SEC

inquiry

of

the

company

and

the

class

action

lawsuits

and

derivative

actions

that

were

filed

in

light

of

the

SEC

inquiry,

(10)

there

can

be

no

assurance

that

the

outcome

of

the

SEC

inquiry

or

internal

revie

w

will

not

require

changes

in

the

company’s

accounting

policies

and

practices,

restatement

of

financial

statements,

revisions

of

preliminary

results

or

guidance,

and/or

otherwise

be

adverse

to

the

company,

(11)

the

company

may

be

unable

to

deliver

financial

statements

or

make

SEC

filings

within

the

time

period

required

by

its

lenders

or

the

indentures

governing

various

securities,

as

amended,

and

(12)

the

estimated

impact

of

expected

restatements

is

preliminary

and

may

change

based

upon

additional

analysis

by

the

company

or

its

auditors.

Certain

of

these

risks

and

uncertainties,

as

well

as

others,

are

discussed

in

greater

detail

in

the

company's

filings

with

the

SEC.

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.

Company Profile

Service 

Rental

Equipment

Sales

Contractor

Supplies

New

Equipment

Sales

4%

9%

9%

6%

72%

Rentals

72%

Rentals

Revenues by End Market

Revenues by End Market

First Nine Months 2005

Revenues by Line of Business

Revenues by Line of Business

Largest equipment rental

company in the world

More than 500,000 rental units

with original cost of $4.0 billion

Operates in 48 states, 10

Canadian provinces and Mexico

Diverse customer base

Industrial

Homeowner

Traffic

Control

65% Private Non-

Residential

Construction

65% Private Non-

Residential

Construction

15%

15%

10%

10%

10%

10%

3

740 Rental Locations Across North America

4

URI’s Competitive Advantages

Strong brand recognition

One-stop shopping

Better equipment utilization

through sharing

Significant purchasing power

Leading information

technology

5

Diversified Equipment Mix

Earthmoving & Light Equipment

High Reach

Traffic Control

Trench Safety

6

Current Industry Conditions

7

Private non-residential construction continues moderate

improvement

–

Improved 5.3% in first eight months of 2005 and 4.2% in 2004 

–

Declined 7% in 2003 and 13% in 2002

–

Still 15% below peak levels of August 2000

State budget shortfalls and TEA-21 delays postponed highway

spending

–

TEA-21 had been on extension since October 2003

–

SAFETEA-LU signed on August 10 at $286.4 billion over six years

–

Will not impact 2005 but should benefit 2006 and beyond

Cyclicality of Private Non-Residential Construction

(YOY % Change)

Source:  U.S. Department of Commerce

8

Non-Residential Spending Trend Not Seasonally Adjusted

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

URI’s Performance –

2004 (preliminary)

9

URI growth outperformed rental industry and end markets

2004 results expected to meet or exceed 2004 outlook

2004 total revenues increased 8.4% to a record $3.1B

2004 rental rates increased 7.5%

–

Increased 2.1% in 2003 following decline of 4.8% in 2002

2004 free cash flow of $385MM after $634MM of total CapEx

2004 year end cash balance of $302 million

URI’s Performance –

2005 (preliminary)

First nine months 2005 total revenues increased 15.1%

—

Increased 15.9% in third quarter

First nine months 2005 rental rates increased 6.3%

—

Increased 5.0% in third quarter

First nine months 2005 preliminary EPS of $1.45

—

Third

quarter preliminary EPS of $0.76

First nine months free cash flow of $(76MM) after $734MM of total

CapEx

September 30, 2005 cash balance of $151 million

10

Total revenues increased

15.1% in first nine months 

2005

Same-store rental revenues

increased 11.6% in first

nine months of 2005;

General Rentals up 11.8%,

Traffic Control up 9.4%

Total revenues increased

8.4% in 2004

Same-store rental revenues

increased 5.9% in 2004;

General Rentals up 10.9%,

Traffic Control down 25.5%

Total Revenues

Total Revenues

$ in millions

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2004

2005

$3,107

$3.5B

$2,270

$2,612

First Nine Months Actual

2005 Outlook

Revenues (preliminary)

11

($100)

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

Free cash flow was

$(76) million in first

nine months 2005

after total rental

and non-rental

CapEx of $734

million

Record free cash

flow of $385 million

in 2004 was the

result of higher

rental rates, lower

interest expense

and working capital

improvements

CapEx and Free Cash Flow

CapEx and Free Cash Flow

$507

$216

$634

$385

$825

$100

2004

2004

2005

2005

Outlook

CapEx

Free Cash Flow

CapEx

Free Cash Flow

$ in millions

$734

$(76)

CapEx and Free Cash Flow (preliminary)

12

9 mos

Full Year

9 mos

Actual

Actual

Borrowings as of September 30, 2005

Total of $202 million, including

LC’s,  utilized on $650 million

revolver

$200 million AR facility

undrawn

Earliest significant maturity

2009

Amendments to credit

facility obtained through

December 31, 2005

Consents from bondholders

obtained through March 31, 2006

--

$

Term Debt

Term Debt

Senior unsecured debt

Senior unsecured debt

Convertible subordinated debt

Convertible subordinated debt

($ in millions)

($ in millions)

September 30, 2005

September 30, 2005

739

739

900

900

144

144

Senior secured bank debt:

Senior secured bank debt:

Total debt

Total debt

$2,936

$2,936

Subordinated debt

Subordinated debt

A/R securitization

--

Other debt

Other debt

16

16

$137

$137

$1,000

$1,000

Convertible preferred

Convertible preferred

222

222

$

Revolver

13

2005 Outlook(2004 preliminary)

Improve rental rates at 

least 5%

Grow contractor supplies 

sales more than 40%

Diluted EPS of $1.68-$1.75

EBITDA of $935-$950

million

Achieve $100 million of free

cash flow

Revenues ($ in billions)

Revenues ($ in billions)

Rental equipment sales

Rental equipment sales

Contractor supplies growth

Contractor supplies growth

Rental CapEx

Rental CapEx

Growth 

Growth 

($ in millions)

($ in millions)

Outlook

2005

Outlook

2005

$3.5

$3.5

$260-285

$260-285

40%+

40%+

$475-500

$475-500

$250-275

$250-275

Rates

Rates

7.5%

7.5%

$3.1

$3.1

5%+

5%+

$275

$275

22%

22%

$452

$452

$125

$125

Free Cash Flow

Free Cash Flow

$385

$385

$100

$100

Maintenance

Maintenance

Earnings per Share

$1.68-$1.75

EBITDA

EBITDA

$935-950

$935-950

EBITDA is a non- GAAP term, which represents net income plus interest expense, income taxes,

depreciation and amortization, and should not be considered an alternative to net income or cash

flow from operating activities as an indicator of operating performance or liquidity.

2004

14

Conclusion

15

Compelling economics support rental trend

Low market penetration provides continued growth opportunities

United Rentals outperforming industry and end-markets

We believe rate increases, fleet expansion, new branches and

contractor supplies growth will improve earnings and cash flow

going forward

We believe high operating leverage will drive earnings growth as

construction spending continues to improve

Net cash provided by operating activities

Purchases of rental equipment

Purchases of property and equipment

Proceeds from sales of rental equipment

Proceeds from real estate sale-

leaseback/sales of rental locations

Net cash provided by operating activities

Purchases of rental equipment

Purchases of property and equipment

Proceeds from sales of rental equipment

Proceeds from real estate sale-

leaseback/sales of rental locations

($ in millions)

($ in millions)

2004

2004

$721

$721

(577)

(577)

(57)

(57)

275

275

$385

$385

Free Cash Flow

23

23

2004

2004

2005

2005

$531

$531

(465)

(465)

(42)

(42)

192

192

$216

$216

$427

$427

(678)

(678)

(56)

(56)

228

228

3

3

$(76)

$(76)

First Nine Months

--

--

GAAP Reconciliation

Free

cash flow

16

Full Year

Goldman Sachs

Global Capital Goods Conference 2005

November 2, 2005