UNITED RENTALS, INC. Annual Report, Year Ended Dec 31, 2009

United Rentals, Inc. (URI) faced a challenging economic environment in 2009, with total revenues declining by 27.8% to $2.36 billion, primarily due to a significant drop in equipment rental revenue. This was driven by an 11.8% decrease in rental rates and a 2.9 percentage point decline in equipment utilization. Despite the revenue decline, the company demonstrated resilience by generating $367 million in free cash flow and implementing significant cost-reduction measures, including a reduction in employee headcount by 20% and closing 64 branches. Management is focused on optimizing the core rental business, increasing revenue from national accounts, and capitalizing on opportunities in the industrial marketplace to drive future growth and profitability. Financially, United Rentals managed its debt effectively, issuing new senior notes and using proceeds to repurchase existing debt, improving its debt maturity profile. The company ended 2009 with $954 million in borrowing capacity under its ABL facility and $19 million under its accounts receivable securitization facility, alongside $169 million in cash, indicating sufficient liquidity for the near term. The company anticipates continued revenue declines in 2010, though at a slower pace than in 2009, and plans for net rental capital expenditures between $100 million and $120 million.