Summary
United Rentals, Inc. (URI) reported a strong third quarter for 2011, demonstrating significant revenue and profit growth compared to the prior year. Total revenues increased by 17.8% year-over-year to $713 million for the three months ended September 30, 2011. This growth was primarily driven by a substantial 19.1% increase in equipment rental revenue, attributed to higher rental rates and increased utilization of their fleet. The company also saw a notable improvement in profitability, with net income rising to $65 million from $23 million in the same period last year, and diluted earnings per share increasing to $0.91 from $0.33. Key strategic initiatives, including acquisitions in Canada and the US, appear to be contributing positively to the company's performance. The company's focus on optimizing its core rental business and controlling costs is reflected in the improved operating margins across its segments. Despite a challenging economic environment, URI's ability to grow revenue and enhance profitability suggests a strengthening market position and effective operational management, making it an attractive prospect for investors seeking exposure to the industrial and construction equipment rental sector.
Financial Highlights
46 data points| Revenue | $713.00M |
| Cost of Revenue | $439.00M |
| Gross Profit | $274.00M |
| SG&A Expenses | $103.00M |
| Operating Income | $156.00M |
| Net Income | $65.00M |
| EPS (Basic) | $1.04 |
| EPS (Diluted) | $0.91 |
| Shares Outstanding (Basic) | 62.64M |
| Shares Outstanding (Diluted) | 73.33M |
Key Highlights
- 1Total revenues increased by 17.8% year-over-year to $713 million for the three months ended September 30, 2011.
- 2Equipment rental revenue saw a significant increase of 19.1%, driven by a 7.5% rise in rental rates and a 2.2% improvement in time utilization.
- 3Net income more than doubled to $65 million, compared to $23 million in the same period last year.
- 4Diluted earnings per share increased to $0.91 from $0.33 year-over-year.
- 5The company completed three acquisitions (Venetor Group, GulfStar Rental Solutions, and Ontario Laser Rentals Ltd.) during the first nine months of 2011, contributing to fleet expansion and market reach.
- 6Segment operating income for General Rentals increased by $45 million, and for Trench Safety, Power and HVAC by $13 million year-over-year.
- 7Time utilization for equipment rentals reached a record 73.5% for the three months ended September 30, 2011.