Investor Presentaiton
Pro Forma EBITDA and Adjusted EBITDA GAAP
Reconciliations
The pro forma information below for 2018 reflects the combination of United Rentals, BakerCorp and BlueLine. BakerCorp was acquired in July 2018 and was fully included in United Rentals' results for the three months ended December 31, 2018. Prior to our acquisitions of
BakerCorp and BlueLine, BakerCorp and BlueLine management used different EBITDA and adjusted EBITDA definitions than those used by United Rentals. The information below reflects BakerCorp and BlueLine historical information presented in accordance with United
Rentals' definitions of EBITDA and adjusted EBITDA. The management of BakerCorp and BlueLine historically did not view EBITDA and adjusted EBITDA as liquidity measures, and accordingly the information required to reconcile these measures to the statement of cash
flows is unavailable to the company. The tables below provide calculations of as-reported and pro forma net income and EBITDA and adjusted EBITDA for the three months and years ended December 31, 2019 and 2018.
$ Millions
Net income (loss)
Provision for income taxes
Interest expense, net
Depreciation of rental equipment
Non-rental depreciation and amortization
EBITDA (A)
Merger related costs (1)
Restructuring charge (2)
Stock compensation expense, net (3)
Impact of the fair value mark-up of acquired fleet (4)
Other (5)
Adjusted EBITDA (B)
A)
Three Months Ended
December 31,
2019
As-
reported
2018
As-
reported
2018
Three Months Ended
December 31,
2018
BlueLine
$338
$310
$(139)
Pro
forma
$171
95
115
115
170
142
11
153
420
375
17
392
96
95
95
$1,119
$1,037
$(111)
$926
16
17
| 207
29
262
22
138
160
16
16
29
13
13
1
1
$1,154
$1,117
$28
$1,145
(1)
B)
Our as-reported EBITDA margin was 45.6% and 45.0% for the three months ended December 31, 2019 and 2018, respectively, and pro forma EBITDA margin was 39.1% for the three months
ended December 31, 2018. Our as-reported EBITDA margin was 44.9% and 45.1% for the years ended December 31, 2019 and 2018, respectively, and pro forma EBITDA margin was 41.8% for the
year ended December 31, 2018.
Our as-reported adjusted EBITDA margin was 47.0% and 48.4% for the three months ended December 31, 2019 and 2018, respectively, and pro forma adjusted EBITDA margin was 48.3% for the
three months ended December 31, 2018. Our as-reported adjusted EBITDA margin was 46.6% and 48.0% for the years ended December 31, 2019 and 2018, respectively, and pro forma adjusted
EBITDA margin was 46.9% for the year ended December 31, 2018.
Reflects transaction costs associated with the 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
BlueLine had annual revenues of approximately $786 million. The BlueLine merger costs reflect merger related costs recognized by BlueLine prior to the
acquisition.
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 $333 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.
(5)
Includes various adjustments reflected in historic adjusted EBITDA for BlueLine.
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. 2020 United Rentals, Inc. All rights reserved.
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