Exhibit 99.1
[LOGO] United
Rentals
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FOR IMMEDIATE RELEASE
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UNITED RENTALS REPORTS RESULTS
FOR FOURTH QUARTER AND FULL YEAR 2001
$346 Million in Free Cash Flow from Operations in 2001
Same-Store Rental Revenues Rose 5.6% for the Year
GREENWICH, CT, February 26, 2002 - United Rentals, Inc. (NYSE: URI)
today announced financial results for the fourth quarter and full year ended
December 31, 2001. The company reported fourth quarter revenues of $704 million,
compared to $751 million in the year-ago quarter. Net income for the quarter was
$32.2 million, compared to $36.4 million in the year-ago quarter. Diluted
earnings per share were $0.34, compared to $0.40 per diluted share in the
year-ago quarter. Same-store rental revenues rose 3% for the quarter.
Revenues for the full year were $2.89 billion, compared to $2.92
billion in 2000. Net income was $147 million, compared to $176 million in 2000.
Earnings were $1.56 per diluted share, compared to $1.89 per diluted share in
2000. Results for 2001 exclude previously announced charges of $28.9 million
($0.20 per diluted share) for restructuring expenses and $25.9 million ($0.18
per diluted share) for debt refinancing. Same-store rental revenues rose 5.6%
for the year.
Rental rates in the fourth quarter and the full year were down 1.1% and
0.8%, respectively, compared to the corresponding year-ago periods. In the
fourth quarter and the full year, respectively, rental revenues were 77.1% and
76.7% of total revenues; sales of rental equipment were 5.6% and 5.1%; and sales
of equipment and merchandise and other revenues were 17.3% and 18.2%. Equipment
utilization for the fourth quarter and the full year were, respectively, 58.9%
and 61.2%, down from 62.5% and 62.7% in the corresponding periods in 2000. For
the fourth quarter and the full year, respectively, sharing of equipment among
branches generated 10.3%, or $56 million, and 10.2%, or $226 million, of rental
revenues compared to 11.8%, or $63 million, and 10.7%, or $221 million, in the
corresponding year-ago periods.
Bradley Jacobs, chairman and chief executive officer, said, "Our
performance in 2001 demonstrated the strength of our business in an economic
downturn. The company was solidly profitable and grew same-store rental revenues
by 5.6%. We added 300,000 new customers, expanding our total customer base to
1.4 million. National Account revenues were $372 million for the year, a more
than 50% increase from 2000. Significantly, we generated $346 million in free
cash flow from operations after capital expenditures of $497 million.
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"The company is very well positioned to resume rapid revenue growth
and even greater earnings growth as the economy recovers. About 75% of our cost
of rentals is fixed or semi-variable. In a stronger economy, this operating
leverage should result in our revenues growing faster than our costs,
substantially expanding our margins and earnings per share."
The company will conduct an investor conference call at 11:00 AM EST
today. Interested parties can participate by dialing 1-913-981-5522. The
conference call will also be broadcast live over the Internet at www.vcall.com
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and on the company's web site at www.unitedrentals.com.
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United Rentals, Inc. is the largest equipment rental company in North
America, with an integrated network of 741 locations in 47 states, seven
Canadian provinces, and Mexico. The company serves more than 1.4 million
customers, including construction and industrial companies, manufacturers,
utilities, municipalities, homeowners and others. The company offers for rent
over 600 different types of equipment with a total original cost of
approximately $3.6 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 presentation are forward-looking in nature.
These statements can be identified by the use of forward-looking terminology
such as "believes," "expects," "may," "will," "should," "on track" or
"anticipates" 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 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, and (4) any companies that United Rentals acquire could have
undiscovered liabilities and may be difficult to integrate. 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.
# # #
Contact:
Fred Bratman
Vice President, Corporate Communications
United Rentals, Inc.
(203) 618-7323
fbratman@ur.com
[Financial Tables Attached]
UNITED RENTALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(000's except per share data)
Three months ended Year ended
December 31 December 31
2001 2000 2001 2000
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Revenues:
Equipment rentals $542,864 $534,552 $2,212,900 $2,056,683
Sales of rental equipment 39,420 92,701 147,101 347,678
Sales of equipment and merchandise
and other revenues 121,721 123,667 526,604 514,500
-------- -------- ---------- ----------
Total revenues 704,005 750,920 2,886,605 2,918,861
Cost of revenues:
Cost of equipment rentals,
excluding depreciation 263,401 247,601 1,053,635 907,477
Depreciation of rental equipment 81,101 81,594 320,963 328,131
Cost of rental equipment sales 24,998 58,444 88,742 208,182
Cost of equipment and merchandise
sales and other operating costs 88,907 93,197 383,795 386,501
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Total cost of revenues 458,407 480,836 1,847,135 1,830,291
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Gross profit 245,598 270,084 1,039,470 1,088,570
Selling, general and administrative expenses 109,080 118,869 441,751 454,330
Restructuring charge 28,922
Non-rental depreciation and amortization 26,474 23,691 106,763 86,301
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Operating income 110,044 127,524 462,034 547,939
Interest expense 55,123 66,386 241,063 248,279
Other (income) expense, net (76) (1,040) 6,421 (1,836)
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Income before provision for income taxes
and extraordinary item 54,997 62,178 214,550 301,496
Provision for income taxes 22,823 25,804 91,977 125,121
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Income before extraordinary item 32,174 36,374 122,573 176,375
Extraordinary item, net of tax 11,317
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Net income $32,174 $36,374 $111,256 $176,375
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Diluted earnings per share before
extraordinary item $0.34 $0.40 $1.30 $1.89 (b)
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Diluted earnings per share $0.34 $0.40 $1.18 (a) $1.89 (b)
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Weighted average diluted
shares outstanding 95,596 91,821 94,387 99,254
(a) Diluted earnings per share was $1.56 for the year ended December 31, 2001
before deducting $0.38 per share for restructuring expenses and debt
refinancing.
(b) Diluted earnings per share for the year ended December 31, 2000 is
calculated by treating the Company's quarterly income preferred securities
on an as converted basis.