United Rentals M&A and 4Q Results Presentation
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.
Net income (loss)
Loss on discontinued operations, net of tax
Provision (benefit) for income taxes
Interest expense, net
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018 2019
2020
$
(704) $
(62) $
(26) $
101
$
75
$
387 $
540 $
585 $ 566 $ 1,346
$ 1,096 $ 1,174 $
890
2
4
(109)
(47)
(41)
63
13
218
310
378
343
(298)
380
340
174
226
255
228
512
475
555
567
511
464
481
648
249
669
Interest expense-subordinated convertible debentures,
net (1)
Depreciation of rental equipment
9
(4)
455
417
Non-rental depreciation and amortization
58
57
EBITDA
(117)
589
649
Merger related costs (2)
Restructuring charge (3)
Charge related to settlement of SEC inquiry (4)
Goodwill impairment charge (5)
Impact of the fair value mark-up of acquired fleet (6)
(Gain) loss on sale of software
subsidiary (7)
12
20
31
14
1,147
༈ ༔ ༔ | ྃ || 「 | ཆ
8
7
4
3
389
423
699
852
921
976
990
1,124
1,363
1,631
1,601
60
57
198
246
273
268
255
259
308
407
387
879
1,501
2,181
2,599
2,774
2,665
2,895
3,628
4,200
3,796
19
34
1 19
| |
☐
111
9
99
12
| |
26
| |
| |
| |
11
(26)
(1)
14
엉엉
50
36
1
50
31
18
17
||
| |
| |
37
44
35
29
35
82
66
75
49
(8)
1
-
|
Stock compensation expense, net (8)
6
8
12
32
46
74
49
45
87
102
61
70
Adjusted EBITDA
$ 1,070 $
628
Net income (loss) margin
(21.5)%
(2.6)%
$ 691 $ 929
(1.2)%
$ 1,772
2,293
$ 2,718 $ 2,832
3.9%
1.8%
7.8%
9.5%
10.1%
$ 2,759 $ 3,164
9.8%
$ 3,863
$ 4,355
$ 3,932
20.3%
13.6%
12.6%
10.4%
Adjusted EBITDA margin
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%
United Rentals
8
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. 2021 United Rentals, Inc. All rights reserved.
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