Investor Presentaiton
Adjusted Earnings Per Share GAAP Reconciliation
We define "earnings per share - adjusted" as the sum of earnings per share - GAAP, as-reported plus the impact of the following special items: merger related costs, merger related intangible asset amortization, impact on
depreciation related to acquired fleet and property and equipment, impact of the fair value markup of acquired fleet, restructuring charge, asset impairment charge and loss on repurchase/redemption of debt securities and
amendment of ABL facility. Management believes that earnings per share - adjusted provides useful information concerning future profitability. However, earnings per share - adjusted is not a measure of financial
performance under GAAP. Accordingly, earnings per share - adjusted should not be considered an alternative to GAAP earnings per share. The table below provides a reconciliation between earnings per share - GAAP,
as-reported, and earnings per share - adjusted.
$ Millions
Earnings per share -GAAP, as-reported
After-tax impact of:
Merger related costs (2)
Three Months Ended
June 30,
Six Months Ended
June 30,
2019
2018
2019
2018
$
3.44
$ 3.20
$
5.62 $ 5.34
0.02
0.01
0.03
Merger related intangible asset amortization (3)
0.64
0.37
1.28
0.76
Impact on depreciation related to acquired fleet and property and equipment (4)
Impact of the fair value mark-up of acquired fleet (5)
0.12
0.08
0.26
0.17
0.15
0.15
0.41
0.36
Restructuring charge (6)
0.06
0.03
0.13
0.05
Asset impairment charge (7)
0.03
0.03
Loss on repurchase/redemption of debt securities and amendment of ABL facility
Earnings per share - adjusted
0.30
0.30
$
Tax rate applied to above adjustments (1)
4.74
25.3%
$ 3.85
$ 8.04
$
25.3%
25.4%
6.71
25.3%
(1)
(2)
(3)
The tax rates applied to the adjustments reflect the statutory rates in the applicable entities.
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.
(4)
(5)
Reflects the impact of extending the useful lives of equipment acquired in the RSC, NES, Neff, BakerCorp and BlueLine
acquisitions, net of the impact of additional depreciation associated with the fair value mark-up of such equipment.
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.
(6)
(7)
Primarily reflects severance and branch closure charges associated with our closed restructuring programs and our current
restructuring programs. 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.
Reflects write-offs of leasehold improvements and other fixed assets.
Reflects the amortization of the intangible assets acquired in the RSC, National Pump, NES, Neff, BakerCorp and BlueLine acquisitions.
United Rentals |
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. 2018 United Rentals, Inc. All rights reserved.
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