United Rentals Financial Performance and Market Exposure
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.
(1)
(2)
(3)
(4)
$ 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
2018
Three Months Ended
December 31,
2017
Year Ended
December 31,
2018
2017
$ 2,853 $ 2,209
$ 730 $ 453
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(3)
(3)
(12)
(9)
82
67
278
220
6
4
Gain on insurance proceeds from damaged equipment
4
11
22
21
Merger related costs (1)
(22)
(18)
(36)
(50)
Restructuring charge (2)
(16)
(22)
(31)
(50)
Stock compensation expense, net (3)
(29)
(23)
(102)
(87)
Loss on repurchase/redemption of debt securities and amendment of
ABL facility
(11)
(54)
Changes in assets and liabilities
192
255
124
129
Cash paid for interest
76
52
455
357
Cash paid for income taxes, net
EBITDA
Add back:
Merger related costs (1)
Restructuring charge (2)
Stock compensation expense, net (3)
21
91
71
205
$ 1,037
$
852
$ 3,628
$
2,895
Impact of the fair value mark-up of acquired fleet (4)
Adjusted EBITDA
22
18
36
50
16
22
31
50
29
23
102
87
13
32
66
82
$ 1,117
$
947
$ 3,863
$
3,164
Reflects transaction costs associated with the NES, Neff, BakerCorp and BlueLine acquisitions discussed above. 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 historic acquisitions that have included merger related costs are RSC, which had annual revenues of approximately $1.5 billion prior to the acquisition, and National Pump, which had annual revenues of over $200 million prior to the
acquisition. NES had annual revenues of approximately $369 million, Neff had annual revenues of approximately $413 million, BakerCorp had annual revenues of approximately $295 million and Blue Line had annual revenues of approximately $786 million.
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 three restructuring programs. We have cumulatively incurred total restructuring charges of $315 million under our restructuring programs.
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 the RSC, NES, Neff and Blue Line acquisitions and subsequently sold.
United Rentals®
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2018 United Rentals, Inc. All rights reserved.
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