Work United™ - M&A Strategy Review slide image

Work United™ - M&A Strategy Review

Reconciliation of Ahern Net Income (Loss) to Adjusted EBITDA Ahern Rentals EBITDA represents the sum of net income (loss), interest expense, rental depreciation and amortization expense and non-rental depreciation and amortization expense. Ahern Rentals adjusted EBITDA represents EBITDA plus certain expenses detailed within the reconciliation below. EBITDA and adjusted EBITDA are non-GAAP financial measures. 2019 Fiscal Year Ending December 31, 2020 LTM 2021 September 2022 Net Income (loss) $29 ($10) ($8) ($6) Interest expense $55 $51 $52 $56 Rental depreciation and amortization expense $79 $86 $94 $92 Non-rental depreciation and amortization expense $13 $17 $22 $24 EBITDA $176 $144 $160 $166 Lease expense on assets purchased (1) $121 $140 $115 $113 Carve-out adjustments (2) $25 $17 $17 $19 Normalization adjustments (3) Adjusted EBITDA $1 $3 $6 $12 $323 $304 $298 $310 (1) Lease expense represents the lease cost in the P&L of rental, non-rental, and Xtreme Re-Rental equipment that has been purchased by URI (2) Carve-out adjustments represent the impact of assets and operations that are not included as part of this transaction, including items such as Executive costs, private aviation, and parts warehouse (3) Normalization adjustments include certain costs that do not relate to the post-combination entity including legal costs incurred by Ahern Rentals related to a particular lawsuit, certain freight costs to move equipment from closed locations in excess of normal operating movement, costs related to an attempted financing, and exit costs on lease terminations United Rentals WORK UNITED™ 11
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