United Rentals M&A and 4Q Results Presentation
Adjusted Earnings Per Share GAAP Reconciliation
We define "earnings per share - adjusted" as the sum of earnings per share - GAAP, as reported plus the impact of the following special items: merger related costs, merger related intangible asset amortization, impact on depreciation
related to acquired fleet and property and equipment, impact of the fair value mark-up of acquired fleet, restructuring charge, asset impairment charge and loss on repurchase/redemption of debt securities and amendment of ABL facility.
Management believes that earnings per share - adjusted provides useful information concerning future profitability. However, earnings per share - adjusted is not a measure of financial performance under GAAP. Accordingly, earnings per
share adjusted should not be considered an alternative to GAAP earnings per share. The table below provides a reconciliation between earnings per share - GAAP, as reported, and earnings per share - adjusted.
-
$ Millions
Earnings per share - GAAP, as reported
After-tax impact of:
Merger related costs (2)
Three Months Ended
December 31,
Year Ended
December 31,
2020
2019
2020
2019
$
4.09
$ 4.49
$ 12.20 $ 15.11
-
0.01
Merger related intangible asset amortization (3)
0.52
0.60
2.22
2.48
Impact on depreciation related to acquired fleet and property and equipment (4)
Impact of the fair value mark-up of acquired fleet (5)
(0.04)
0.05
0.08
0.39
0.16
0.16
0.51
0.72
Restructuring charge (6)
0.06
0.03
0.18
0.18
Asset impairment charge (7)
(0.01)
0.37
0.05
Loss on repurchase/redemption of debt securities and amendment of ABL facility (8)
Earnings per share - adjusted
Tax rate applied to above adjustments (1)
0.25
0.28
1.88
0.58
$
5.04
$
5.60
$
17.44
$
19.52
25.2 %
25.1 %
25.2 %
25.3 %
(1)
(2)
The tax rates applied to the adjustments reflect the statutory rates in the applicable entities.
(3)
Reflects transaction costs associated with the BakerCorp International Holdings, Inc. ("BakerCorp") and BlueLine acquisitions that were completed
in 2018. 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 acquisitions that have included merger related costs are RSC,
which had annual revenues of approximately $1.5 billion prior to the acquisition, National Pump, which had annual revenues of over $200 million
prior to the acquisition, NES, which had annual revenues of approximately $369 million prior to the acquisition, Neff, which had annual revenues of
approximately $413 million prior to the acquisition, BakerCorp, which had annual revenues of approximately $295 million prior to the acquisition and
Blue Line, which had annual revenues of approximately $786 million prior to the acquisition.
Reflects the amortization of the intangible assets acquired in the RSC, National Pump, NES, Neff, BakerCorp and BlueLine acquisitions.
(4)
(5)
(6)
Reflects the impact of extending the useful lives of equipment acquired in the RSC, NES, Neff, BakerCorp and BlueLine acquisitions, net of the
impact of additional depreciation associated with the fair value mark-up of such equipment.
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.
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 five restructuring programs. We have cumulatively incurred total restructuring charges of $350 million under our
restructuring programs.
Reflects write-offs of leasehold improvements and other fixed assets. The 2020 charges primarily reflect the discontinuation of certain equipment
programs, and were not related to COVID-19.
(7)
(8)
Primarily reflects the difference between the net carrying amount and the total purchase price of the redeemed notes.
United Rentals®
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. 2021 United Rentals, Inc. All rights reserved.
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