United Rentals Reports First Quarter Results in Line With Expectations

Apr 27, 2001, 01:00 ET from United Rentals, Inc.

    GREENWICH, Conn., April 27 /PRNewswire/ -- 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 http://www.vcall.com, and a replay of the call will be available
 to all investors on the Company's web site at http://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 http://www.unitedrentals.com.
 
     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.
 
                              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
 
     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
     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
     Total cost of revenues                           416,537        372,978
 
     Gross profit                                     202,567        205,984
 
     Selling, general and administrative expenses     108,893        101,850
     Non-rental depreciation and amortization          26,107         20,018
 
     Operating income                                  67,567         84,116
 
     Interest expense                                  62,405         54,558
     Other (income) expense, net                        (670)          (204)
     Income before provision for income taxes           5,832         29,762
     Provision for income taxes                         2,420         12,351
 
     Net income                                        $3,412        $17,411
     Diluted earnings per share                         $0.04          $0.19
     Weighted average diluted
     shares outstanding                                91,609         92,851
 
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SOURCE United Rentals, Inc.
    GREENWICH, Conn., April 27 /PRNewswire/ -- 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 http://www.vcall.com, and a replay of the call will be available
 to all investors on the Company's web site at http://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 http://www.unitedrentals.com.
 
     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.
 
                              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
 
     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
     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
     Total cost of revenues                           416,537        372,978
 
     Gross profit                                     202,567        205,984
 
     Selling, general and administrative expenses     108,893        101,850
     Non-rental depreciation and amortization          26,107         20,018
 
     Operating income                                  67,567         84,116
 
     Interest expense                                  62,405         54,558
     Other (income) expense, net                        (670)          (204)
     Income before provision for income taxes           5,832         29,762
     Provision for income taxes                         2,420         12,351
 
     Net income                                        $3,412        $17,411
     Diluted earnings per share                         $0.04          $0.19
     Weighted average diluted
     shares outstanding                                91,609         92,851
 
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                http://tbutton.prnewswire.com/prn/11690X37307078
 
 SOURCE  United Rentals, Inc.