Exhibit 99.1
[LOGO] United Rentals
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FOR IMMEDIATE RELEASE
UNITED RENTALS REPORTS FIRST QUARTER RESULTS
IN LINE WITH EXPECTATIONS
GREENWICH, CT, April 27, 2001 - United Rentals, Inc. (NYSE: URI) today
announced financial results for the first quarter ended March 31, 2001. The
Company reported revenues of $619 million, a 6.9% increase over the $579 million
reported for the first quarter of 2000. Rental revenues were 74.5% of total
revenues, sales of rental equipment were 6.3%, and sales of equipment and
merchandise and other revenues were 19.2%. Same store rental revenues increased
8.2% year over year. Net income for the quarter was $3.4 million, compared to
$17.4 million in the same period last year. Diluted earnings per share were
$0.04, compared with $0.19 reported in last year's first quarter. The results
reflect the Company's planned reduction in rental equipment sales this year, as
well as greater seasonality due to the significant increase in the Company's
traffic control business. Equipment utilization in the quarter was 53.3%, and
sharing of equipment among branches accounted for 9.8% of rental revenues.
Bradley Jacobs, chairman and chief executive officer, said, "We are
pleased with our results for the first quarter, which were in line with
analysts' expectations. Our rental revenues were up 15.3% compared to last year.
We raised rental rates for the fifth consecutive quarter, achieving a 1.6% year
over year increase. Since the beginning of the year, we've added 228 new
National Accounts, bringing the total number of companies that have signed
agreements with us to over 1,400.
"We completed three significant financings earlier this month: a $750
million term loan, a $750 million revolving credit facility, and a $450 million
senior unsecured note offering. This $1.95 billion of new capital replaces our
prior credit facility and term loans, further strengthens our balance sheet and
gives us greater flexibility to grow the business."
The Company will conduct an investor conference call at 11:00 AM EDT
today. Interested parties can participate in this call by dialing
1-913-981-5509. The conference call will also be broadcast live over the
Internet at www.vcall.com, and a replay of the call will be available to all
investors on the Company's web site at www.unitedrentals.com for 10 days
beginning shortly after the conference call.
United Rentals, Inc. is the largest equipment rental company in North
America, with an integrated network of more than 750 locations in 47 states,
seven Canadian provinces, and Mexico. The Company serves over 1.2 million
customers including construction and industrial companies, manufacturers,
municipalities, homeowners and others. The Company offers for rent over 600
different types of equipment with a total original cost of approximately $3.5
billion. Additional information about United Rentals is available at the
Company's web site at www.unitedrentals.com.
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Certain statements contained in this press release are forward-looking
in nature. These statements can be identified by the use of forward-looking
terminology such as "believes," "expects," "projects," "may," "will," "should,"
"on track" or "anticipate" or the negative thereof or comparable terminology, or
by discussions of strategy. The Company's business and operations are subject to
a variety of risks and uncertainties and, consequently, actual results may
materially differ 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 industry conditions could
lead to a decrease in demand for the Company's equipment and to a decline in
prices and rental rates, (2) governmental funding for highway and other
construction projects may not reach expected levels, (3) the Company cannot be
certain that it will have access to the additional capital that it may require
or that its cost of capital will not increase, (4) acquisitions may become more
expensive, may have undisclosed liabilities and may be more difficult to
integrate, and (5) the Company is highly dependent on the services of its senior
management. These risks and uncertainties, as well as others, are discussed in
greater detail in the Company's filings with the Securities and Exchange
Commission, including its most recent Annual Report on Form 10-K and its
subsequent Quarterly Reports on Form 10-Q. 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.
# # #
Investor contact: Media contact:
Robert Miner Brandy Bergman
United Rentals, Inc. Citigate Sard Verbinnen
(203) 622-3131 (212) 687-8080
bminer@ur.com bbergman@sardverb.com
UNITED RENTALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(000's, except per share data)
Three months Three months
ended ended
March 31, 2001 March 31, 2000
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Revenues:
Equipment rentals $461,382 $400,098
Sales of rental equipment 39,122 70,332
Sales of equipment and
merchandise and other revenues 118,600 108,532
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Total revenues 619,104 578,962
Cost of revenues:
Cost of equipment rentals,
excluding depreciation 230,033 174,300
Depreciation of rental equipment 76,801 73,503
Cost of rental equipment sales 23,076 41,086
Cost of equipment and merchandise
sales and other operating costs 86,627 84,089
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Total cost of revenues 416,537 372,978
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Gross profit 202,567 205,984
Selling, general and administrative expenses 108,893 101,850
Non-rental depreciation and amortization 26,107 20,018
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Operating income 67,567 84,116
Interest expense 62,405 54,558
Other (income) expense, net (670) (204)
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Income before provision for income taxes 5,832 29,762
Provision for income taxes 2,420 12,351
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Net income $3,412 $17,411
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Diluted earnings per share $0.04 $0.19
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Weighted average diluted
shares outstanding 91,609 92,851