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UNITED RENTALS, INC. Annual Report, Year Ended Dec 31, 2006

Filing Date
Filed February 27, 2007
Period End
December 31, 2006
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 February 27, 2007. Cited figures are marked; the original filing is the authoritative source.

United Rentals, Inc. (URI) reported strong revenue growth in 2006, reaching $3.6 billiona, a 10.7% increase from the prior year.

This growth was driven by a 5.1% increase in rental rates and a 1.9 percentage point rise in equipment utilization, alongside a significant 27.9% surge in contractor supplies sales. The company also made progress in reducing its debt by $450 millionb in 2006. While the company is the largest equipment rental provider globally, it faces ongoing scrutiny from the SEC regarding accounting practices, which has led to restatements and ongoing cooperation with both the SEC and the U.S. Attorney's office.

Additionally, the company is subject to class-action lawsuits related to these past accounting issues. Financially, the company demonstrated improved profitability from continuing operations, with revenue growth outpacing the construction end market.

Despite substantial debt of $2.7 billionc at the end of 2006, URI's liquidity appears sufficient, with $492 million in borrowing capacity under its revolving credit facility and $275 million under its receivables securitization facility. The company anticipates continued growth in 2007 through organic expansion, acquisitions, and further development of its contractor supplies business.

02—Key points

Key Highlights

  1. Reported 2006 revenues of $3.6 billion, a 10.7% year-over-year increase.
  2. Achieved a 5.1% increase in rental rates and a 1.9 percentage point rise in equipment utilization.
  3. Experienced a significant 27.9% growth in contractor supplies sales.
  4. Reduced total debt by $450 million during 2006.
  5. The company is the largest equipment rental company globally.
  6. Operating under ongoing SEC inquiry and related class-action lawsuits, with full cooperation from management.
  7. Maintains adequate liquidity with $492 million available under its revolving credit facility and $275 million under its accounts receivable securitization facility.

03—Questions

Frequently Asked Questions

  1. What were the primary drivers of revenue growth in 2006?

    Revenue growth in 2006 was primarily driven by an increase in equipment rental rates (5.1%), improved equipment utilization (up 1.9 percentage points), and a substantial increase in contractor supplies sales (27.9%).

  2. What is the company's current debt situation?

    As of December 31, 2006, United Rentals had approximately $2.7 billion in total indebtedness. The company reduced its total debt by $450 million during 2006 and demonstrated compliance with its debt covenants.

  3. What are the significant risks and legal challenges facing the company?

    The company faces risks related to decreases in construction and industrial activity, fluctuating operating results due to seasonality and other factors, and substantial debt. It is also subject to an ongoing SEC inquiry into its accounting practices, which has led to restatements and class-action lawsuits. Management is cooperating with these investigations and intends to defend against lawsuits vigorously.

  4. How is the company positioned in terms of liquidity?

    The company reported sufficient liquidity, with $119 million in cash and cash equivalents, $492 million in available borrowing capacity under its revolving credit facility, and $275 million under its accounts receivable securitization facility as of December 31, 2006.

04—Continue

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