2023 Investor Day Presentation
Historical EBITDA and Adjusted EBITDA GAAP Reconciliations
($M) (cont'd)
We define "free cash flow" as net cash provided by operating activities less purchases of, and plus proceeds from, equipment and intangible assets. The equipment and
intangible asset purchases and proceeds are included in cash flows from investing activities. Management believes that free cash flow provides useful additional information
concerning cash flow available to meet future debt service obligations and working capital requirements. However, free cash flow is not a measure of financial performance or
liquidity under GAAP. Accordingly, free cash flow should not be considered an alternative to net income or cash flow from operating activities as an indicator of operating
performance or liquidity. The table below provides a reconciliation between net cash provided by operating activities and free cash flow.
2012
2013
2014
Net cash provided by operating activities
$ 721
$ 1,551 $ 1,801
2015
2016
$1,987 $ 1,941
2017
2018
2019
2020
2021
2022
$ 2,209
$ 2,853 $ 3,024 $ 2,658
3,689
$4,433
Adjustments for items included in net cash provided by operating activities but excluded
from the calculation of EBITDA:
Amortization of deferred financing costs and original issue discounts
(23)
(21)
(17)
(10)
Gain on sales of rental equipment
125
176
229
227
(Loss) gain on sales of non-rental equipment
2
6
11
8
Insurance proceeds on damaged equipment (7)
8
Gain (loss) on sale of software subsidiary (5)
8
(1)
Merger related costs (2)
(111)
(9)
(11)
26
Restructuring charge (3)
(99)
(12)
1
(6
Stock compensation expense, net (6)
(32)
(46)
(74)
(49
Gain (loss) on extinguishment of debt securities, and amendments of debt facilities
(72)
(1)
(80
(123)
Loss on retirement of subordinated convertible debentures (1)
(2)
Excess tax benefits from share-based payment arrangements (8)
Changes in assets and liabilities
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571
31
182
194
Cash paid for interest, including subordinated convertible debentures (1)
Cash paid (received) for income taxes, net
371
461
457
447
40
48
100
60
EBITDA
Add back:
Merger related costs (2)
Restructuring charge (3)
Stock compensation expense, net (6)
1,501
2,181
2,599
2,774
111
99
32
Impact of the fair value mark-up of acquired fleet (4)
37
(Gain) loss on sale of software subsidiary (5)
Adjusted EBITDA
(8)
22611
9
11
(26)
(1)
6
46
74
49
44
35
29
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(9)
(9)
(12)
(15)
204
220
278
313
4
4
6
6
12
21
22
24
(50)
(36)
(1)
(14)
(50)
(31) (18)
(45) (87) (102) (61)
(101) (54)
58
101
129
124
170
415
357
455
581
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(14)
(13)
(13)
332
431
566
8
10
9
40
25
32
(17)
(2)
(70)
(119)
(127)
(61) (183)
(30)
(17)
241
(328)
(151)
483
391
406
99
205
71
238
318
202
326
2,665 2,895
3,628 4,200 3,796
4,253
5,464
14
45
35
88881
50
36
1
31
18
87
102
61
82
66
75
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༄ce
17
32
70
119
127
49
37
27
-
$ 1,772
$2,293
$ 2,718
$ 2,832 $ 2,759 $ 3,164 $3,863 $ 4,355
$ 3,932
$
4,414
$5,618
United Rentals®
Work United®
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