01—Abstract
Summary
Summary of the 10-K filed January 26, 2022. Cited figures are marked; the original filing is the authoritative source.
United Rentals, Inc. (URI) reported strong financial performance in its 2021 10-K filing, demonstrating significant recovery and growth following the challenges of 2020.
Total revenues increased by 13.9% to $9.7 billiona, primarily driven by a 14.9% surge in equipment rentals, which benefited from a 10.4% improvement in fleet productivity and the strategic acquisition of General Finance Corporation. This acquisition expanded URI's service offerings into mobile storage and modular office space, and also provided entry into Australia and New Zealand markets. The company maintained a robust balance sheet with available liquidity of $2.851 billion as of December 31, 2021.
URI also focused on optimizing its capital structure by issuing new senior notes and redeeming existing ones. Looking ahead, United Rentals projects a positive outlook, anticipating a 10%b growth in the North American equipment rental industry for 2022, indicating continued market recovery and demand for its services.
02—Key points
Key Highlights
- Total revenues grew by 13.9% to $9.7 billion in 2021, up from $8.5 billion in 2020.
- Equipment rental revenue increased by 14.9%, driven by a 10.4% improvement in fleet productivity.
- The company completed the acquisition of General Finance Corporation in May 2021, expanding its service offerings and geographic reach.
- Net income rose significantly by 55.7% to $1.4 billion in 2021, compared to $890 million in 2020.
- United Rentals expects the North American equipment rental industry to grow by approximately 10% in 2022.
- The company maintained strong liquidity with $2.851 billion in available liquidity as of December 31, 2021.
- A new $1 billion share repurchase program was authorized in January 2022.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, United Rentals, Inc. kept $0.14.
- Revenue$9.72B100.0%
- Cost of revenue−$5.86B60.3%
- Gross profit$3.85B39.7%
- Operating costs−$1.58B16.2%
- Operating income$2.28B23.4%
- Interest, other & tax−$891.0M9.2%
- Net income$1.39B14.3%
Where FY2021 revenue went
$9.72B- Cost of revenue: $5.86B, 60% of revenue
- Net income: $1.39B, 14% of revenue
- SG&A: $1.20B, 12% of revenue
- Other operating costs: $377.0M, 3.9% of revenue
- Interest, other & tax: $891.0M, 9.2% of revenue
Kept 14% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed January 26, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $9.72B$8.53B | +13.9% |
| Cost of Revenue | $5.86B$5.35B | +9.7% |
| Gross Profit | $3.85B$3.18B | +21.0% |
| SG&A Expenses | $1.20B$979.00M | +22.5% |
| Operating Income | $2.28B$1.80B | +26.5% |
| Net Income | $1.39B$890.00M | +55.7% |
| EPS (Basic) | $19.14$12.24 | +56.4% |
| EPS (Diluted) | $19.04$12.20 | +56.1% |
| Shares Outstanding (Basic) | 72.43M72.66M | −0.3% |
| Shares Outstanding (Diluted) | 72.82M72.93M | −0.2% |
05—Questions
Frequently Asked Questions
What was the primary driver of United Rentals' revenue growth in 2021?
The primary driver of United Rentals' revenue growth in 2021 was a significant increase in equipment rental revenue, which grew by 14.9%. This growth was fueled by a 10.4% improvement in fleet productivity, reflecting a recovery in demand across various end-markets, and also benefited from the acquisition of General Finance Corporation.
How did the acquisition of General Finance Corporation impact United Rentals?
The acquisition of General Finance Corporation in May 2021 expanded United Rentals' service offerings to include mobile storage and modular office space, positioning it as a more comprehensive solutions provider. It also marked URI's entry into the Australian and New Zealand markets, diversifying its geographic footprint.
What is United Rentals' outlook for the equipment rental market in 2022?
United Rentals has a positive outlook for 2022, projecting a continuation of the market recovery experienced in 2021. They anticipate that the North American equipment rental industry revenue will increase by approximately 10% in 2022.
How is United Rentals managing its debt and liquidity?
United Rentals has actively managed its financial flexibility and liquidity. As of December 31, 2021, the company had $2.851 billion in available liquidity. In 2021, they issued $750 million in Senior Notes due 2032 and redeemed $1 billion of Senior Notes due 2026. The company also amended and extended its accounts receivable securitization facility, increasing its size.
06—Continue