2023 Investor Day 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.
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Net income (loss)
$ 75
$ 387
$ 540
$ 585
566
$ 1,346
$ 1,096 $ 1,174 $ 890 $ 1,386
$
2,105
Provision (benefit) for income taxes
13
218
310
378
343
(298)
380
340
249
460
697
Interest expense,
net
512
475
555
567
511
464
481
648
669
424
445
Interest expense-subordinated convertible debentures, net (1)
4
3
Depreciation of rental equipment
699
852
921
976
990
1,124
1,363
1,631
1,601
1,611
1,853
Non-rental depreciation and amortization
198
246
273
268
255
259
308
407
387
372
364
EBITDA
1,501
2,181
2,599
2,774
2,665
2,895
3,628
4,200
3,796
4,253
5,464
Merger related costs (2)
111
9
11
(26)
50
36
1
---
3
Restructuring charge (3)
99
12
(1)
6
14
50
31
18
17
2
Impact of the fair value mark-up of acquired fleet (4)
37
44
35
29
35
82
66
75
49
37
(Gain) loss on sale of software subsidiary (5)
(8)
1
---
---
Stock compensation expense, net (6)
32
46
74
49
45
87
102
61
70
119
INN
---
27
127
Adjusted EBITDA
Net income (loss) margin
Adjusted EBITDA margin
$
1,772
$ 2,293
$ 2,718
$ 2,832
$ 2,759
$ 3,164
$ 3,863 $ 4,355 $ 3,932 $
1.8%
7.8%
9.5%
10.1%
9.8%
20.3%
13.6%
12.6%
10.4%
43.0%
46.3%
47.8%
48.7%
47.9%
47.6%
48.0%
46.6%
46.1%
4,414
14.3%
45.4%
$ 5,618
18.1%
48.3%
● United Rentals®
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2023 Investor Day | 96View entire presentation