Capital Allocation and Digital Strategy Update
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.
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018 2019
2020
2021
2022
2023
Net income (loss)
$ (704) $
(62) $
(26) $
101
$
75 $ 387 $ 540 $ 585 $ 566
$ 1,346 $ 1,096 $1,174 $ 890 $
1,386
$ 2,105 $
2,424
Loss on discontinued operations, net of
tax
-
2
4
-
---
Provision (benefit) for income taxes
(109)
(47)
(41)
63
13
218
310
378
343
Interest expense, net
174
226
255
228
512
475
555
567
511
(298) 380
464
481
340
249
460
697
787
648
669
424
445
635
Interest expense-subordinated
convertible debentures, net (1)
9
(4)
8
7
4
3
Depreciation of rental equipment
455
417
389
423
699
852
921
976
990
1,124 1,363 1,631 1,601
1,611
1,853
2,350
Non-rental depreciation and amortization
58
57
60
57
198
246
273
268
255
EBITDA
(117)
589
649
879
1,501
2,181
2,599
2,774
2,665
259
308 407
2,895 3,628 4,200 3,796
387
372
364
431
4,253
5,464
6,627
Merger related costs (2)
-
19
111
9
11
(26)
-
Restructuring charge (3)
20
31
34
19
99
12
(1)
6
14
Charge related to settlement of SEC
inquiry (4)
14
Goodwill impairment charge (5)
1,147
Impact of the fair value mark-up of
acquired fleet (6)
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37
44
35
29
29
35
82
828
550
36
1
31
18
17
32
28
| |
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99
66
75
15
49
49
37
27
108
(Gain) loss on sale of software
subsidiary (7)
(8)
1
---
Stock compensation expense, net (8)
6
8
8
12
32
46
74
49
45
87
102
61
70
119
127
94
Adjusted EBITDA
Net income (loss) margin
$ 1,070
$ 628 $ 691 $ 929
$
1,772 $ 2,293
Adjusted EBITDA margin
(21.5)% (2.6)%
32.8% 26.6%
(12.0)%
3.9%
1.8%
7.8%
30.9%
35.6%
43.0%
9.5% 10.1%
46.3% 47.8% 48.7%
9.8%
$ 2,718 $ 2,832 $ 2,759 $ 3,164 $3,863 $ 4,355 $ 3,932 $ 4,414
20.3% 13.6% 12.6% 10.4% 14.3%
$ 5,618 $
6,857
18.1%
16.9%
47.9%
47.6% 48.0% 46.6%
46.1%
45.4%
48.3%
47.8%
United Rentals®
Work United®
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