M&A Strategy and Financial Overview
EBITDA and Adjusted EBITDA GAAP Reconciliations (cont'd)
The table below provides a reconciliation between net cash provided by operating activities and EBITDA and adjusted EBITDA.
$ millions
Three Months Ended
September 30,
2023
2022
Net cash provided by operating activities
$
1,062 $ 1,142
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
Nine Months Ended
September 30,
2023
2022
$ 3,290 $ 3,182
United Rentals®
1)
Gain on sales of non-rental equipment
Insurance proceeds from damaged equipment
Restructuring charge (1)
Stock compensation expense, net (2)
Loss on repurchase/redemption of debt securities (4)
Changes in assets and liabilities
Cash paid for interest
Cash paid for income taxes, net
EBITDA
Add back:
Restructuring charge (1)
Stock compensation expense, net (2)
Impact of the fair value mark-up of acquired fleet (3)
Adjusted EBITDA
Primarily reflects severance and branch closure charges associated with our restructuring programs. We
only include such costs that are part of a restructuring program as restructuring charges. The designated
restructuring programs generally involve the closure of a large number of branches over a short period of
time, often in periods following a major acquisition, and result in significant costs that we would not normally
incur absent a major acquisition or other triggering event that results in the initiation of a restructuring
program. Since the first such restructuring program was initiated in 2008, we have completed six
restructuring programs. In the first quarter of 2023, we initiated a restructuring program following the closing
of the Ahern Rentals acquisition, which is our only open restructuring program as of September 30, 2023.
The increase in 2023 reflects charges associated with the restructuring program initiated following the
closing of the Ahern Rentals acquisition. We have cumulatively incurred total restructuring charges of $376
million under our restructuring programs.
Work United®
(4)
(3)
(11)
(9)
181
112
567
325
6
2
11
8
600
16
6
30
25
(5)
1
(24)
(23)
(35)
(72)
(95)
(17)
206
(39)
187
(191)
190
151
495
339
177
143
389
295
$
1,801
$ 1,482
$
4,867
$ 3,860
5
(1)
24
23
35
72
95
21
5
85
16
1,850
$
1,521
$
5,048
3,971
2)
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
certain major acquisitions and subsequently sold. The increase in 2023
primarily reflects the impact of the Ahern Rentals acquisition.
Primarily reflects the difference between the net carrying amount and
the total purchase price of the redeemed notes.
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