EXHIBIT 12(a)
UNITED RENTALS, INC.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31 | Six Months Ended June 30, | |||||||||||||||||
1998 | 1999 | 2000 | 2001 | 2002(2) | 2002 | 2003 | ||||||||||||
(dollars in thousands) | ||||||||||||||||||
Earnings: | ||||||||||||||||||
Income before provision for income taxes and extraordinary items | $ | 78,297 | $ | 241,807 | $ | 301,496 | $214,550 | $(101,384 | ) | $96,226 | $23,754 | |||||||
Interest expense | 64,157 | 139,828 | 228,779 | 221,563 | 195,961 | 97,515 | 105,376 | |||||||||||
Amortization of debt issuance costs | 1,423 | 4,154 | 6,880 | 9,468 | 10,080 | 4,900 | 6,068 | |||||||||||
Interest portion of rent expense (1) | 6,834 | 21,833 | 45,224 | 55,739 | 61,742 | 29,135 | 30,407 | |||||||||||
Earnings as adjusted | $ | 150,711 | $ | 407,622 | $ | 582,379 | $501,320 | $166,399 | $227,776 | $165,605 | ||||||||
Fixed charges: | ||||||||||||||||||
Interest expense | $ | 64,157 | $ | 139,828 | $ | 228,779 | $221,563 | $195,961 | $97,515 | $105,376 | ||||||||
Amortization of debt issuance costs | 1,423 | 4,154 | 6,880 | 9,468 | 10,080 | 4,900 | 6,068 | |||||||||||
Interest portion of rent expense(1) | 6,834 | 21,833 | 45,224 | 55,739 | 61,742 | 29,135 | 30,407 | |||||||||||
Fixed charges | $ | 72,414 | $ | 165,815 | $ | 280,883 | $286,770 | $267,783 | $131,550 | $141,851 | ||||||||
Ratio of earnings to fixed charges | 2.1x | 2.5x | 2.1x | 1.7x | 0.6x | 1.7x | 1.2x |
(1) | The interest portion of rent expense is estimated to be one-third of rent expense. |
(2) | The ratio for the year 2002 was less than 1x. The amount of the deficiency was approximately $101.4 million. |