Summary
United Rentals, Inc. (URI) reported strong performance in its 2019 annual filing, showcasing robust revenue growth driven by strategic acquisitions and organic expansion. The company, the world's largest equipment rental provider, saw its total revenues climb to $9.35 billion, a significant increase from $8.05 billion in the prior year, primarily fueled by its core equipment rental segment. This growth was supported by an expanding fleet, strategic acquisitions like BakerCorp and BlueLine, and a focus on operational efficiencies and customer service. The company's strategy for 2020 emphasizes continued profitability improvement, return on invested capital, superior customer service, and fleet optimization. URI is also investing in its specialty rental segments, including trench, power, and fluid solutions, and plans further strategic acquisitions to enhance its market position. While the company anticipates industry growth of approximately 3% in North America for 2020, it also highlights potential risks such as economic slowdowns, increasing interest rates, and competition. The company demonstrated financial strength by issuing new debt, redeeming existing debt, and amending its credit facilities, reinforcing its liquidity and financial flexibility.
Financial Highlights
52 data points| Revenue | $9.35B |
| Cost of Revenue | $5.68B |
| Gross Profit | $3.67B |
| SG&A Expenses | $1.09B |
| Operating Income | $2.15B |
| Net Income | $1.17B |
| EPS (Basic) | $15.18 |
| EPS (Diluted) | $15.11 |
| Shares Outstanding (Basic) | 77.34M |
| Shares Outstanding (Diluted) | 77.71M |
Key Highlights
- 1Total revenues increased by 16.2% to $9.35 billion in 2019 from $8.05 billion in 2018.
- 2Equipment rental revenue grew by 14.8% year-over-year, driven by a 17.7% increase in average Original Equipment Cost (OEC) and a slight improvement in fleet productivity on a pro forma basis.
- 3The company completed strategic acquisitions of BakerCorp and BlueLine in 2018, which contributed to revenue growth and expanded its service offerings and geographic reach.
- 4United Rentals maintained a strong market position with an estimated 13% North American market share.
- 5The company proactively managed its debt in 2019 by issuing new notes and redeeming existing ones, while also amending and extending its ABL facility.
- 6Available liquidity stood at $2.143 billion as of December 31, 2019, indicating strong financial health.
- 7The company authorized a new $500 million share repurchase program in January 2020, signaling confidence in its financial position and commitment to returning value to shareholders.