Investor Presentaiton
Reconciliation of Net Cash Provided by Operating Activities
to EBITDA and Adjusted EBITDA
The table below provides a reconciliation between net cash provided by operating activities and EBITDA and adjusted EBITDA.
$ Millions
Three Months Ended
December 31,
(1)
2019
2018
2019
Net cash provided by operating activities
$
442 $
Year Ended
December 31,
2018
730 $ 3,024 $ 2,853
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
Gain on sales of rental equipment
Gain on sales of non-rental equipment
Gain on insurance proceeds from damaged equipment
Merger related costs (1)
Restructuring charge (2)
Stock compensation expense, net (3)
(16)
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(15)
(12)
313
278
6
22
(22)
(1)
(36)
(16)
(18)
(31)
(29)
(61)
(102)
Loss on repurchase/redemption of debt securities and amendment of ABL
facility
(29)
(61)
Changes in assets and liabilities
387
192
170
124
Cash paid for interest
101
76
581
455
Cash paid for income taxes, net
142
21
238
71
EBITDA
Add back:
$
1,119
$ 1,037
$ 4,200
$
3,628
Merger related costs (1)
Restructuring charge (2)
Stock compensation expense, net (3)
Impact of the fair value mark-up of acquired fleet (4)
Adjusted EBITDA
22
2
16
16
29
22
1
36
18
31
61
102
17
13
75
$ 1,154
$
1,117 $ 4,355
$
66
3,863
Reflects transaction costs associated with the BakerCorp and BlueLine acquisitions discussed above. 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.
(2)
(3)
(4)
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 $333 million under our restructuring programs.
Represents non-cash, share-based payments associated with the granting of equity instruments.
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.
United Rentals
9
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. 2020 United Rentals, Inc. All rights reserved.
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