Driving Digital Transformation and Shareholder Value
(1)
Reconciliation of Net Cash Provided by Operating Activities
to EBITDA and Adjusted EBITDA
The table below provides a reconciliation between net cash provided by operating activities and EBITDA and adjusted EBITDA.
$ Millions
Net cash provided by operating activities
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
Gain on sales of non-rental equipment
Gain on insurance proceeds from damaged equipment
Merger related costs (1)
Restructuring charge (2)
Stock compensation expense, net (3)
Changes in assets and liabilities
Cash paid for interest
Cash paid for income taxes, net
EBITDA
Add back:
Merger related costs (1)
Restructuring charge (2)
Stock compensation expense, net (3)
Impact of the fair value mark-up of acquired fleet (4)
Adjusted EBITDA
Reflects transaction costs associated with the BakerCorp and Blue Line 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 BlueLine, which had annual revenues of approximately $786
million prior to the acquisition.
United Rentals
Three Months Ended
March 31,
2019
2020
$ 644 $ 667
(4)
(4)
83
67
1
2
6
7
(1)
•g ༞ ༅|སྱེ
(13)
(4)
(15)
(28)
179
3
4
$
888
$
870
174
1
2
8
13
15
12
27
$
915
$
921
(2)
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 $335 million under our restructuring programs.
(3)
Represents non-cash, share-based payments associated with the granting of equity instruments.
(4)
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.
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. 2020 United Rentals, Inc. All rights reserved.
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