Summary
United Rentals, Inc. (URI) reported its financial results for the quarterly period ended June 30, 2011, indicating a solid recovery and growth trajectory. The company demonstrated significant revenue increases across its segments, particularly in equipment rentals, driven by a rise in rental rates and equipment utilization. This growth was supported by strategic acquisitions made during the period, expanding its geographical reach and service offerings. Profitability showed substantial improvement compared to the prior year, with operating income and net income both turning positive after a loss in the comparable period of 2010. The company's focus on optimizing its core rental business, enhancing customer service, and disciplined cost control appears to be yielding positive results. Management expressed confidence in their strategy to strengthen their leadership position during the ongoing economic recovery, supported by increasing rental demand and a secular shift towards equipment rental.
Financial Highlights
46 data points| Revenue | $629.00M |
| Cost of Revenue | $418.00M |
| Gross Profit | $211.00M |
| SG&A Expenses | $100.00M |
| Operating Income | $95.00M |
| Net Income | $27.00M |
| EPS (Basic) | $0.44 |
| EPS (Diluted) | $0.37 |
| Shares Outstanding (Basic) | 62.48M |
| Shares Outstanding (Diluted) | 74.05M |
Key Highlights
- 1Total revenues increased by 12.9% to $629 million for the three months ended June 30, 2011, compared to $557 million in the prior year period.
- 2Equipment rentals, the company's primary revenue source, saw a 16.4% increase to $524 million for the quarter, driven by a 13.8% rise in rental volume and a 6.1% increase in rental rates.
- 3Net income turned positive at $27 million for the quarter, a significant improvement from a net loss of $(28) million in the same period of the previous year.
- 4The company completed strategic acquisitions of Venetor Group and GulfStar Rental Solutions in April 2011, expanding its presence in Canada and its power and HVAC rental capabilities.
- 5Time utilization for rental equipment increased to 69.0% in the second quarter of 2011, up from 65.4% in the prior year, indicating improved fleet productivity.
- 6EBITDA increased by 26.5% to $215 million for the quarter, showcasing improved operational profitability.
- 7The company maintained compliance with its debt covenants, and had $541 million in borrowing capacity available under its ABL facility and $12 million under its accounts receivable securitization facility as of June 30, 2011, indicating sufficient liquidity.