What was the primary reason for filing this amendment?

The primary reason for this filing is to restate the earnings per share (EPS) calculation for the year ended December 31, 2002. The company failed to include a gain from the repurchase of its preferred securities in the original filing, and this amendment corrects that by including the gain, which positively impacted the 2002 EPS by $0.47.

What caused the significant net loss in 2002?

The substantial net loss of $397.8 million in 2002 was primarily due to significant non-cash charges. These included a goodwill impairment charge of $247.9 million and restructuring charges totaling $28.3 million. Lower revenues and declining gross profit margins also contributed to the loss.

How did the company's revenues perform in 2002 compared to 2001?

Total revenues decreased by 2.2% to $2.82 billion in 2002 from $2.89 billion in 2001. This decline was mainly attributed to a weaker construction market, which led to a 4.8% decrease in rental rates. While rental transaction volume saw a slight increase, it was not enough to offset the lower pricing.

What is the company's liquidity position as of December 31, 2002?

The company maintained ample liquidity. As of December 31, 2002, it had $45.3 million drawn under its revolving credit facility, leaving $493.1 million in available borrowing capacity. The company generated $517.9 million in cash flow from operations during 2002.

URI 10-K FY2002 Annual Report — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-K/A filed June 24, 2003. Cited figures are marked; the original filing is the authoritative source.

This filing from UNITED RENTALS, INC. (URI) is an amendment to its 10-K report, primarily addressing a restatement of its earnings per share calculation for the year ended December 31, 2002.

The restatement resulted from the correct inclusion of a gain from repurchasing preferred securities at a discount, which had a positive impact of $0.47^a per share on the 2002 EPS. The amendment clarifies that no other financial statements were affected.

The company experienced a significant net loss of $397.8 million^b in 2002, largely due to substantial non-cash charges, including a goodwill impairment of $247.9 million and restructuring charges totaling $28.3 million. Despite the net loss, the company generated $517.9 million in cash flow from operations and maintained significant liquidity, with $493.1 million in available borrowing capacity on its revolving credit facility at year-end 2002.

02—Key points

Key Highlights

Restatement of 2002 EPS to include a gain from preferred security repurchases, improving EPS by $0.47.
Significant net loss of $397.8 million in 2002, impacted by non-cash charges.
Substantial goodwill impairment charge of $247.9 million recorded in Q4 2002.
Restructuring charges totaled $28.3 million in 2002 and $28.9 million in 2001, impacting operating results.
Total revenues decreased by 2.2% to $2.82 billion in 2002, driven by a 4.8% decline in rental rates due to weakness in non-residential construction.
Gross profit margins declined across key segments (rentals and used equipment sales) in 2002.
Company maintained ample liquidity with $493.1 million in available borrowing capacity on its revolving credit facility at year-end 2002.

03—Questions

Frequently Asked Questions

What was the primary reason for filing this amendment?
The primary reason for this filing is to restate the earnings per share (EPS) calculation for the year ended December 31, 2002. The company failed to include a gain from the repurchase of its preferred securities in the original filing, and this amendment corrects that by including the gain, which positively impacted the 2002 EPS by $0.47.
What caused the significant net loss in 2002?
The substantial net loss of $397.8 million in 2002 was primarily due to significant non-cash charges. These included a goodwill impairment charge of $247.9 million and restructuring charges totaling $28.3 million. Lower revenues and declining gross profit margins also contributed to the loss.
How did the company's revenues perform in 2002 compared to 2001?
Total revenues decreased by 2.2% to $2.82 billion in 2002 from $2.89 billion in 2001. This decline was mainly attributed to a weaker construction market, which led to a 4.8% decrease in rental rates. While rental transaction volume saw a slight increase, it was not enough to offset the lower pricing.
What is the company's liquidity position as of December 31, 2002?
The company maintained ample liquidity. As of December 31, 2002, it had $45.3 million drawn under its revolving credit facility, leaving $493.1 million in available borrowing capacity. The company generated $517.9 million in cash flow from operations during 2002.

04—Continue

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