Summary
United Rentals, Inc. (URI) reported its first quarter 2021 financial results, indicating a sequential improvement in performance compared to the prior year, though total revenues saw a slight decrease. The company generated total revenues of $2.06 billion, a 3.2% decrease year-over-year, primarily driven by a 6.5% decline in equipment rentals, reflecting the ongoing impact of the COVID-19 pandemic on rental volumes. However, the company saw a significant 28.4% increase in sales of rental equipment, driven by a strong used equipment market. Net income increased by 17.3% to $203 million, with diluted EPS rising to $2.80 from $2.33 in the prior year period. This improvement in profitability, despite lower revenues, was aided by a reduction in interest expense and SG&A costs, partially offset by higher income tax expense. URI ended the quarter with a strong liquidity position of $3.745 billion, comprising cash and cash equivalents, and availability under its credit facilities. The company also announced a significant strategic move with the proposed acquisition of General Finance Corporation for approximately $996 million, which is expected to close in the second quarter of 2021 and expand URI's offerings in mobile storage and modular office space. Management remains focused on disciplined capital expenditures and operational efficiencies, anticipating 2021 rental capital expenditures to be consistent with pre-COVID-19 levels.
Financial Highlights
50 data points| Revenue | $2.06B |
| Cost of Revenue | $1.34B |
| Gross Profit | $714.00M |
| SG&A Expenses | $250.00M |
| Operating Income | $372.00M |
| Net Income | $203.00M |
| EPS (Basic) | $2.81 |
| EPS (Diluted) | $2.80 |
| Shares Outstanding (Basic) | 72.34M |
| Shares Outstanding (Diluted) | 72.67M |
Key Highlights
- 1Total revenues for Q1 2021 were $2.06 billion, a 3.2% decrease year-over-year, primarily due to a 6.5% decline in equipment rentals.
- 2Net income increased by 17.3% to $203 million, resulting in diluted EPS of $2.80, up from $2.33 in Q1 2020.
- 3Sales of rental equipment saw a significant increase of 28.4% year-over-year, indicating strength in the used equipment market.
- 4The company maintained a strong liquidity position with $3.745 billion available as of March 31, 2021.
- 5United Rentals announced a proposed acquisition of General Finance Corporation for approximately $996 million, expected to close in Q2 2021.
- 6Interest expense decreased significantly by 27.2% year-over-year due to lower average debt and cost of debt.
- 7SG&A expenses as a percentage of revenue decreased due to cost-saving measures implemented in response to COVID-19.