United Rentals Earnings Reconciliation and Strategic Vision
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
June 30,
Six Months Ended
June 30,
2023
2022
United Rentals®
2023
2022
Net cash provided by operating activities
$ 1,289
$ 1,154
$ 2,228
$ 2,040
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
(3)
(3)
(7)
(6)
Gain on sales of rental equipment
196
97
386
213
Gain on sales of non-rental equipment
6
2
10
4
Insurance proceeds from damaged equipment
10
10
19
17
Restructuring charge (1)
(18)
(1)
(19)
Stock compensation expense, net (2)
(25)
(36)
(49)
(60)
Loss on repurchase/redemption of debt securities (4)
(17)
(17)
Changes in assets and liabilities
(136)
(118)
(152)
Cash paid for interest
127
39
305
188
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
183
142
212
152
$ 1,629
$ 1,269
$ 3,066
$ 2,378
1)
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 June 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 $371 million under our restructuring programs.
Work United®
4)
18
1
19
1
25
36
49
60
23
5
64
11
$ 1,695
$ 1,311
$ 3,198
$ 2,450
2)
3)
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 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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