Summary
United Rentals, Inc. reported a net loss of $20 million for the first quarter of 2011, compared to a net loss of $40 million in the same period of 2010. Revenue increased by 9.4% to $523 million, driven primarily by a 14.2% increase in equipment rentals. This revenue growth was fueled by a 12.8% rise in the volume of equipment on rent and a 4.2% increase in rental rates, indicating a recovery in its end markets. The company also reported improvements in gross margins, particularly in equipment rentals and sales of rental equipment. Despite the revenue and margin improvements, the company's financial performance remains challenged by significant debt service requirements. Total liabilities stand at $3,721 million, with long-term debt comprising a substantial portion. While liquidity appears stable with $205 million in cash and cash equivalents and available credit facilities, the highly leveraged capital structure remains a key consideration for investors. The company's strategic focus on core rental business optimization and cost control is ongoing, with restructuring activities expected to be substantially complete by the end of 2011.
Financial Highlights
27 data points| Revenue | $523.00M |
| Cost of Revenue | $385.00M |
| Gross Profit | $138.00M |
| SG&A Expenses | $95.00M |
| Operating Income | $30.00M |
| Net Income | -$20.00M |
| EPS (Basic) | $-0.34 |
| EPS (Diluted) | $-0.34 |
| Shares Outstanding (Basic) | 60.85M |
| Shares Outstanding (Diluted) | 60.85M |
Key Highlights
- 1Total revenues increased by 9.4% to $523 million for the three months ended March 31, 2011, compared to $478 million in the prior year period.
- 2Equipment rental revenue saw a significant increase of 14.2% to $434 million, driven by a 12.8% rise in volume and a 4.2% increase in rental rates.
- 3Gross profit increased by 34% to $138 million, with total gross margin improving to 26.4% from 21.5% in the prior year quarter.
- 4The company reported a net loss of $20 million ($0.34 per diluted share) for the quarter, an improvement from a net loss of $40 million ($0.67 per diluted share) in the first quarter of 2010.
- 5EBITDA and Adjusted EBITDA showed substantial year-over-year growth, increasing by 31.5% and 26.1% respectively, indicating operational improvements.
- 6The company completed the acquisition of Venetor Group, a seven-location Canadian equipment rental company, for approximately $50 million in revenues.
- 7Despite improvements, total liabilities remain high at $3,721 million, with long-term debt at $2,577 million, underscoring the company's leveraged capital structure.