Exhibit 99.1
[LOGO OF UNITED RENTALS]
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FOR IMMEDIATE RELEASE
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UNITED RENTALS REPORTS FIRST QUARTER RESULTS
GREENWICH, CT, April 24, 2002 - United Rentals, Inc. (NYSE: URI) today
announced financial results for the first quarter ended March 31, 2002. The
Company reported revenues of $599 million, compared to $619 million reported for
the first quarter of 2001. Rental revenues were 74.5% of total 2002 revenues,
sales of rental equipment were 6.5%, and sales of equipment and merchandise and
other revenues were 19.0%. Same-store rental revenues decreased 2.4% year over
year. Net income for the quarter, before a pre-tax charge of $349 million for
goodwill impairment, was $7.6 million, or $0.08 per diluted share, compared with
net income of $3.4 million, or $0.04 per diluted share ($12.7 million, or $0.14
per diluted share, if goodwill were accounted for under newly effective FAS
142), for the same period last year. Equipment utilization in the quarter was
49.6% compared to 53.3% in last year's first quarter, and sharing of equipment
among branches accounted for 10.2% of rental revenues compared with 9.8% in last
year's first quarter. Rental rates were down 3.5% compared to the same period
last year.
Bradley Jacobs, chairman and chief executive officer, said, "Our
results for the first quarter were in line with our forecasts for a slow first
half. Same-store rental revenue eased 2.4%, notwithstanding that non-residential
construction was down about 17%, according to the most recent data from the U.S.
Department of Commerce. The results also reflect our continuing cost cutting
efforts that translated into a $10.4 million reduction in SG&A for the quarter
year over year. This is the third consecutive quarter in which we've reduced our
overhead.
"We continue to forecast an improved second half as the anticipated
economic recovery comes into place, and a return to strong revenue growth in
2003 once the full impact of the economic recovery is felt. About 75% of our
cost of rentals is fixed or semi-variable, and this significant operating
leverage should enable us to resume vigorous earnings growth when revenues
increase.
"During the quarter we acquired S&R Equipment, with six aerial lift
equipment locations in Ohio, Indiana and Michigan and about $40 million in
annual revenues. We will continue to consider additional accretive
acquisitions."
The Company will conduct an investor conference call at 11:00 AM (EDT)
today. Interested parties can participate by dialing 1-719-457-2617. 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 744 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 $3.5 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 presentation are forward-looking
in nature. These statements can be identified by the use of forward-looking
terminology such as "believes," "expects," "projects," "forecasts," "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 acquires 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. 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 table attached)
UNITED RENTALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(000's, except per share data)
Three months ended Three months ended
March 31, 2002 March 31, 2001
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Revenues:
Equipment rentals $446,288 $461,382
Sales of rental equipment 39,130 39,122
Sales of equipment and
merchandise and other revenues 113,547 118,600
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Total revenues 598,965 619,104
Cost of revenues:
Cost of equipment rentals, excluding depreciation 235,562 230,033
Depreciation of rental equipment 78,050 76,801
Cost of rental equipment sales 25,132 23,076
Cost of equipment and merchandise sales
and other operating costs 81,013 86,627
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Total cost of revenues 419,757 416,537
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Gross profit 179,208 202,567
Selling, general and administrative expenses 98,495 108,893
Non-rental depreciation and amortization 13,884 26,107
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Operating income 66,829 67,567
Interest expense 54,677 62,405
Other (income) expense, net (280) (670)
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Income before provision for income taxes
and cumulative effect of change in
accounting principle 12,432 5,832
Provision for income taxes 4,848 2,420
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Net income before cumulative effect of change
in accounting principle 7,584 3,412
Cumulative effect of change in accounting
principle, net of tax (288,339)
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Net income $(280,755) $3,412 (a)
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Diluted earnings per share before cumulative
effect of change in accounting principle $0.08 $0.04
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Diluted earnings per share $(2.88) $0.04 (a)
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Weighted average diluted
shares outstanding 97,341 91,609
(a) Net income and diluted earnings per share would have been $12,735 and
$0.14, respectively, if goodwill were accounted for under newly effective
FAS 142.