Investor Presentaiton
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 EBITDA and adjusted EBITDA margins represent EBITDA 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
Net income (loss)
$
(704)
$
(62) $ (26) $
101
$
75
$
387 $
540 $
585 $
566 $ 1,346
$ 1,096 $ 1,174
Loss on discontinued operations, net of tax
Provision (benefit) for income taxes
2
4
(109)
(47)
(41)
63
13
218
310
378
343
(298)
380
340
Interest expense, net
174
226
255
228
512
475
555
567
511
464
481
648
Interest expense-subordinated convertible
debentures, net (1)
Depreciation of rental equipment
55565
9
(4)
8
7
4
3
455
417
389
423
699
852
921
976
990
1,124
1,363
1,631
Non-rental depreciation and amortization
58
57
60
57
198
246
273
268
255
259
308
407
EBITDA
(117)
589
649
879
1,501
2,181
2,599
2,774
2,665
2,895
3,628
4,200
EBITDA Margin
(3.6)%
25.0%
29.0%
33.7%
36.5%
44.0%
45.7%
47.7%
46.3%
43.6%
45.1%
44.9%
Merger related costs (2)
19
111
9
11
(26)
50
36
1
Restructuring charge (3)
20
31
34
19
99
12
(1)
6
14
50
31
18
Charge related to settlement of SEC
inquiry (4)
14
Goodwill impairment charge (5)
1,147
||
| |
| |
1 |
| |
| |
Impact of the fair value mark-up of
acquired fleet (6)
37
44
35
29
35
82
66
75
(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
Adjusted EBITDA
$
1,070
$
628
$
691
$
929 $
1,772
$ 2,293 $ 2,718 $ 2,832
Adjusted EBITDA Margin
32.8%
26.6%
30.9%
35.6%
43.0%
46.3%
47.8%
48.7%
47.9%
$ 2,759 $ 3,164
47.6%
$ 3,863 $ 4,355
48.0%
46.6%
United Rentals®
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. 2020 United Rentals, Inc. All rights reserved.
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