Skip to content
AnalystLens

UNITED RENTALS, INC. Annual Report, Year Ended Dec 31, 2002

Filing Date
Filed March 28, 2003
Period End
December 31, 2002
Security
URI
In the record · 2016–202610-K1110-Q328-K170

URI filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 170 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Oct ’17Oct ’17
  2. Leadership change8-K · May ’19May ’19
  3. Material agreement8-K · Aug ’21Aug ’21
  4. Material agreement8-K · Aug ’25Aug ’25

01—Abstract

Summary

Summary of the 10-K filed March 28, 2003. Cited figures are marked; the original filing is the authoritative source.

United Rentals, Inc. reported total revenues of $2.82 billiona for the year ended December 31, 2002.

Despite strong revenue performance, the company recorded a significant net loss of $397.8 millionb. This loss was primarily driven by non-cash charges including a goodwill impairment of $247.9 million and restructuring and refinancing costs totaling $45.9 million. Excluding these charges, the company's adjusted income was $107.6 million, a decrease from $147.0 million in 2001, reflecting a challenging market environment.

The company experienced a 2.2%c decline in total revenues year-over-year, largely due to a 16% drop in private non-residential construction activity. This downturn led to a 4.8% decrease in rental rates and pressure on used equipment prices. While rental transaction volume saw a modest increase, it was not enough to offset the pricing pressures and revenue decline.

United Rentals continues to manage its operations through cost-cutting measures, branch consolidations, and strategic fleet management, including a plan to increase the weighted average age of its rental fleet. Financially, the company maintained ample liquidity, generating $694.1 milliond in cash flow, which was used to invest $492.3 million in its rental fleet. The company ended the year with significant debt, totaling approximately $2.5 billion, and is focused on managing its capital structure and debt covenants.

02—Key points

Key Highlights

  1. Total revenues for fiscal year 2002 were $2.82 billion, a slight decrease of 2.2% from $2.89 billion in 2001.
  2. The company reported a net loss of $397.8 million in 2002, significantly impacted by a $247.9 million goodwill impairment charge and $45.9 million in restructuring and refinancing costs.
  3. Excluding these charges, adjusted income for 2002 was $107.6 million, a decrease from $147.0 million in 2001, attributed to a downturn in non-residential construction impacting rental rates and equipment prices.
  4. Rental rates decreased by 4.8% in 2002, while rental transaction volume increased by 2.1% at locations open more than one year.
  5. The company generated $517.9 million in cash flow from operations and invested $492.3 million in its rental fleet.
  6. Total debt stood at approximately $2.5 billion as of December 31, 2002.
  7. United Rentals plans to increase the weighted average age of its rental fleet from 36 months to 42 months by the end of 2003 to manage capital expenditures.

03—Questions

Frequently Asked Questions

  1. What was the primary driver of the net loss in 2002?

    The net loss of $397.8 million in 2002 was primarily driven by significant non-cash charges, including a $247.9 million goodwill impairment charge and $45.9 million in restructuring and refinancing costs. These charges significantly impacted the reported profitability for the year.

  2. How did the downturn in the construction industry affect United Rentals' performance?

    The 16% decline in private non-residential construction activity in 2002 negatively impacted United Rentals. This led to lower demand for equipment rentals, a decrease in rental rates by 4.8%, and downward pressure on used equipment prices, all of which reduced gross profit margins and overall income.

  3. What is the company's strategy regarding its rental fleet age?

    United Rentals plans to increase the weighted average age of its rental fleet from approximately 36 months to 42 months by the end of 2003, and potentially to 45 months in the longer term. This strategy reflects the belief that a slightly older fleet is optimal, aiming to manage capital expenditures while maintaining equipment reliability and maintenance costs.

  4. What is the company's liquidity position?

    The company maintained ample liquidity in 2002, generating $517.9 million in cash flow from operations. At year-end, the company had $45.3 million drawn under its revolving credit facility, with $493.1 million of available borrowing capacity, indicating a sufficient ability to support its operations.

04—Continue

← View all 10-K filings