2022 Financial Outlook
Historical EBITDA and Adjusted EBITDA GAAP
Reconciliations
($M)
EBITDA represents the sum of net income (loss), loss on discontinued operations, net of tax, provision (benefit) for income taxes, interest expense, subordinated convertible debentures, net, depreciation of rental equipment, and non-rental depreciation and
amortization. Adjusted EBITDA represents EBITDA plus the adjusting items (determined at the time of the historic reporting) discussed below. These items are excluded from adjusted EBITDA internally when evaluating our operating performance and for
strategic planning and forecasting purposes, and allow investors to make a more meaningful comparison between our core business operating results over different periods of time, as well as with those of other similar companies. The net income and
adjusted EBITDA margins represent net income or adjusted EBITDA divided by total revenue. Management believes that EBITDA and adjusted EBITDA, when viewed with the Company's results under GAAP and the accompanying reconciliations, provide
useful information about operating performance and period-over-period growth, and provide additional information that is useful for evaluating the operating performance of our core business without regard to potential distortions. Additionally, management
believes that EBITDA and adjusted EBITDA help investors gain an understanding of the factors and trends affecting our ongoing cash earnings, from which capital investments are made and debt is serviced. The tables below provide 1) a reconciliation
between net income and EBITDA and adjusted EBITDA and 2) a reconciliation between net cash provided by operating activities and EBITDA and adjusted EBITDA.
YTD
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018 2019
2020
2021
2022
Net income (loss)
$
(704) $ (62) $
(26) $
101 $ 75 $
387 $
540 $ 585 $
566
$ 1,346 $1,096 $1,174 $ 890 $ 1,386 $
860
Loss on discontinued operations, net of tax
Provision (benefit) for income taxes
--
2
--
--
4
-
-
(109)
(47)
(41)
63
13
218
310
378
343
Interest expense, net
174
226
255
228
512
475
555
567
511
(298) 380 340
464 481 648
249
460
231
669
424
207
Interest expense-subordinated convertible
debentures, net (1)
9
(4)
8
7
4
3
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Depreciation of rental equipment
455
417
389
423
699
852
321
921
976
990
1,124
1,363 1,631
1,601
1,611
892
Non-rental depreciation and amortization
EBITDA
58
57
60
57
198
246
273
268
255
259
(117)
589
649
879
1,501
2,181
2,599
2,774
2,665
2,895
308 407
3,628 4,200
387
372
188
3,796
4,253
2,378
Merger related costs (2)
-
19
111
9
11
(26)
50
36
1
3
Restructuring charge (3)
20
31
34
19
99
12
(1)
6
14
50
31
18
17
2
1
Charge related to settlement of SEC inquiry
(4)
14
Goodwill impairment charge (5)
1,147
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Impact of the fair value mark-up of acquired
fleet (6)
(Gain) loss on sale of software
subsidiary (7)
37
44
35
29
29
35
35
42
82
66
75
49
37
11
(8)
1
--
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-
Stock compensation expense, net (8)
6
8
8
12
32
46
74
49
45
87
102
61
70
119
60
Adjusted EBITDA
Net income (loss) margin
Adjusted EBITDA margin
$ 1,070 $ 628 $ 691 $ 929
(21.5)% (2.6)%
$ 1,772
$ 2,293
$ 2,718 $ 2,832
(12)% 3.9%
1.8%
7.8%
9.5% 10.1%
$ 2,759
9.8% 20.3%
$ 3,164
$ 3,863 $4,355 $ 3,932 $ 4,414 $
2,450
13.6% 12.6%
10.4%
14.3%
16.2%
32.8%
26.6%
30.9% 35.6%
43.0%
46.3%
47.8% 48.7%
47.9%
47.6%
48.0% 46.6% 46.1%
45.4%
46.3%
United Rentals
9
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2022 United Rentals, Inc. All rights reserved.
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