United Rentals Earnings Reconciliation and Strategic Vision
EBITDA and Adjusted EBITDA GAAP Reconciliations (cont'd)
The pro forma information below reflects the combination of United Rentals and Ahern Rentals. Prior to the acquisition, Ahern Rentals management used different EBITDA and adjusted EBITDA definitions than those used by United Rentals. The information below
reflects the historical information for Ahern Rentals presented in accordance with United Rentals' definitions of EBITDA and adjusted EBITDA. See below for further detail on each adjusting item. The management of Ahern Rentals historically did not view EBITDA
and adjusted EBITDA as liquidity measures, and accordingly the information required to reconcile these measures to the statement of cash flows is unavailable to the company. The table below provides a calculation of as-reported and pro forma net income and
EBITDA and adjusted EBITDA.
Three Months Ended
United Rentals®
June 30,
Six Months Ended
June 30,
$ millions
2023
2022
2022
2022
2023
2022
2022
2022
As reported
As reported
Net income (loss)
$
591
$ 493
Ahern
Rentals
$ 3
Pro forma
As
reported
As
reported
Ahern
Rentals
Pro forma
$ 496
$1,042
$ 860
$
(6)
$ 854
Provision for income taxes
181
115
115
324
231
231
Interest expense, net
161
113
14
127
311
207
27
234
Depreciation of rental equipment
592
457
22
479
1,167
892
45
937
Non-rental depreciation and amortization
EBITDA
104
91
6
97
222
188
12
200
$ 1,629
$ 1,269
$ 45
$1,314
$3,066
$ 2,378
$
78
$ 2,456
Restructuring charge (1)
18
1
1
19
1
1
Stock compensation expense, net (2)
25
36
36
49
60
60
Impact of the fair value mark-up of
acquired fleet (3)
23
5
5
64
11
11
Ahern Rentals adjustments (4)
Adjusted EBITDA
$ 1,695
$ 1,311
$
35
80
35
69
69
$1,391
$3,198
$ 2,450
$
147
$ 2,597
Net income (loss) margin
Adjusted EBITDA margin
16.6 %
47.7 %
17.8 %
47.3 %
1.3 %
35.6 %
16.6 %
46.4 %
15.2 %
46.8 %
16.2 %
46.3 %
(1.4) %
14.9 %
34.3 %
45.4 %
1)
2)
Primarily reflects severance and branch closure charges associated with our restructuring programs. We only
include such costs that are part of a restructuring program as restructuring charges. The designated restructuring
programs generally involve the closure of a large number of branches over a short period of time, often in periods
following a major acquisition, and result in significant costs that we would not normally incur absent a major
acquisition or other triggering event that results in the initiation of a restructuring program. Since the first such
restructuring program was initiated in 2008, we have completed six restructuring programs. In the first quarter of
2023, we initiated a restructuring program following the closing of the Ahern Rentals acquisition, which is our only
open restructuring program as of June 30, 2023. The increase in 2023 reflects charges associated with the
restructuring program initiated following the closing of the Ahern Rentals acquisition. We have cumulatively
incurred total restructuring charges of $371 million under our restructuring programs.
Represents non-cash, share-based payments associated with the granting of equity instruments.
3)
4)
Reflects additional costs recorded in cost of rental equipment sales associated with the fair
value mark-up of rental equipment acquired in certain major acquisitions and subsequently
sold. The increase in 2023 primarily reflects the impact of the Ahern Rentals acquisition.
Includes various adjustments reflected in historic adjusted EBITDA for Ahern Rentals,
primarily representing (1) lease costs associated with equipment that has been purchased
by United Rentals (after purchase, the associated expense would be recognized as
depreciation which is excluded in the EBITDA calculation) and (2) costs that do not relate
to the combined entity (such as legal costs incurred by Ahern Rentals related to a
particular lawsuit, certain freight costs to move equipment from closed locations in excess
of normal operating movement, costs related to an attempted financing, and exit costs on
lease terminations).
Work United®
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