Investor Presentaiton
(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
Three Months Ended
June 30,
2019
2018
Six Months Ended
June 30,
2019
2018
$
923
$ 1,007
$ 1,590
$ 1,649
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
(4)
81
1
5
Merger related costs (1)
Restructuring charge (2)
(6)
Stock compensation expense, net (3)
(16)
Loss on repurchase/redemption of debt securities and amendment of ABL facility
(32)
ེསྐྱསསྡུསེཝཙྩཾ།
(8)
148
(6)
139
3
3
12
14
(2)
(1)
(3)
(4)
(14)
(6)
(24)
(31)
(43)
(32)
Changes in assets and liabilities
(108) (281) (136)
(404)
Cash paid for interest
122
60
301
Cash paid for income taxes, net
EBITDA
Add back:
Merger related costs (1)
Restructuring charge (2)
Stock compensation expense, net (3)
69
29
73
213
39
$
1,035
$ 861
$ 1,905
$ 1,595
Impact of the fair value mark-up of acquired fleet (4)
Adjusted EBITDA
2
1
3
6
4
14
6
16
24
31
43
16
16
43
40
$
1,073
$ 907
$ 1,994
$ 1,687
Reflects transaction costs associated with the NES, Neff, BakerCorp and BlueLine acquisitions. 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 BlueLine had annual revenues of approximately $786 million.
United Rentals®
(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 four restructuring programs. We have cumulatively
incurred total restructuring charges of $329 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. 2018 United Rentals, Inc. All rights reserved.
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