Investor Presentaiton
Pro Forma EBITDA and Adjusted EBITDA GAAP
Reconciliations
The pro forma information below for the second quarter of 2018 reflects the combination of United Rentals, BakerCorp and BlueLine. Prior to our acquisitions of BakerCorp and BlueLine, BakerCorp and BlueLine management used different EBITDA and
adjusted EBITDA definitions than those used by United Rentals. The information below reflects BakerCorp and BlueLine historical information presented in accordance with United Rentals' definitions of EBITDA and adjusted EBITDA. The management of
BakerCorp and BlueLine 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 for the second quarter of 2019 and 2018.
$ Millions
Net income (loss)
Provision for income taxes
Interest expense, net
Depreciation of rental equipment
Non-rental depreciation and amortization
EBITDA (A)
Merger related costs (1)
Restructuring charge (2)
Stock compensation expense, net (3)
Impact of the fair value mark-up of acquired fleet (4)
Other (5)
Adjusted EBITDA (B)
Three Months Ended
June 30,
Three Months Ended
June 30,
2019
As-reported
2018
As-
reported
2018
2018
2018
BakerCorp
BlueLine
Pro forma
$
270
$ 270
$ (10)
$ (8)
$ 252
81
89
2
91
180
112
11
32
155
399
323
9
50
382
105
67
6
$
1,035
$ 861
$
18
$
76
2
26 2
75
$ 955
4
6
4
4
16
24
24
16
16
16
3
1
4
$
1,073
$ 907
$
21
$
79
$ 1,007
A) Our as-reported EBITDA margin was 45.2% and 45.5% for the three months ended June 30, 2019 and 2018, respectively, and pro forma EBITDA margin was 44.1% for the three months ended June 30, 2018.
B) Our as-reported adjusted EBITDA margin was 46.9% and 48.0% for the three months ended June 30, 2019 and 2018, respectively, and pro forma adjusted EBITDA margin was 46.5% for the three months ended June 30, 2018.
(1)
Reflects transaction costs associated with the NES, Neff, BakerCorp and BlueLine acquisitions. We have made a number of acquisitions in
the past and may continue to make acquisitions in the future. Merger related costs only include costs associated with major acquisitions that
significantly impact our operations. The historic acquisitions that have included merger related costs are RSC, which had annual revenues of
approximately $1.5 billion prior to the acquisition, and National Pump, which had annual revenues of over $200 million prior to the acquisition.
NES had annual revenues of approximately $369 million, Neff had annual revenues of approximately $413 million, BakerCorp had annual
revenues of approximately $295 million and BlueLine had annual revenues of approximately $786 million. The BlueLine merger costs reflect
merger related costs recognized by BlueLine prior to the acquisition.
United Rentals®
(2)
Primarily reflects severance and branch closure charges associated with our closed restructuring programs and our current
restructuring program. We only include such costs that are part of a restructuring program as restructuring charges. Since the first
such restructuring program was initiated in 2008, we have completed four restructuring programs. We have cumulatively incurred
total restructuring charges of $329 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 the RSC, NES, Neff and BlueLine acquisitions and subsequently sold.
(5)
Includes various adjustments reflected in historic adjusted EBITDA for BakerCorp and BlueLine.
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. 2018 United Rentals, Inc. All rights reserved.
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