2022 Financial Outlook
EBITDA and Adjusted EBITDA GAAP Reconciliations
EBITDA represents the sum of net income, provision for income taxes, interest expense, net, depreciation of rental equipment, and non-rental depreciation and amortization. Adjusted EBITDA represents EBITDA plus the sum of the
merger related costs, restructuring charges, stock compensation expense, net, and the impact of the fair value mark-up of acquired fleet. 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 net income and adjusted EBITDA margins represent net income 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 reconciliation, 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 table below provides a reconciliation between net income and EBITDA and adjusted EBITDA.
$ Millions
Net income
Provision for income taxes
Interest expense, net
Depreciation of rental equipment
Non-rental depreciation and amortization
EBITDA
Merger related costs (1)
Restructuring charge (2)
Stock compensation expense, net (3)
2021
Three Months Ended
June 30,
Six Months Ended
June 30,
2022
2021
2022
$ 493
$ 293
$ 860
$ 496
115
84
231
156
113
100
207
199
457
385
892
760
91
90
188
181
$1,269
$ 952
$2,378
$1,792
3
3
1
1
1
36
35
60
56
Impact of the fair value mark-up of acquired fleet (4)
Adjusted EBITDA
5
9
11
$1,311
$ 999
$2,450
20
$1,872
Net income margin
Adjusted EBITDA margin
17.8 %
47.3 %
12.8 %
43.7 %
16.2 %
11.4 %
46.3 %
43.1 %
1)
Reflects transaction costs associated with the General Finance acquisition that was completed in May 2021. Merger related costs only include costs
associated with major acquisitions.
2)
3)
4)
United Rentals®
Primarily reflects severance and branch closure charges associated with our closed 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 six restructuring
programs. We have cumulatively incurred total restructuring charges of $353 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 certain major
acquisitions and subsequently sold.
United Rentals, Inc., 100 First Stamford Place, Stamford, CT 06902. © 2022 United Rentals, Inc. All rights reserved.
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