United Rentals, Inc. (NYSE: URI) today announced financial results for the fourth quarter and full year 2012 1.
For the fourth quarter of 2012, total revenue was $1.249 billion and rental revenue was $1.036 billion. On a GAAP basis, the company reported fourth quarter net income of $41 million, or earnings of $0.40 per diluted share. Adjusted EPS 2 for the quarter was $1.27 per diluted share.
For the full year 2012, total revenue was $4.117 billion and rental revenue was $3.455 billion. On a GAAP basis, full year net income was $75 million, or earnings of $0.79 per diluted share. Adjusted EPS for the full year was $3.76 per diluted share.
For the fourth quarter of 2012, adjusted EBITDA 3 was $553 million and adjusted EBITDA margin was 44.3%. For the full year 2012, adjusted EBITDA was $1.772 billion, and adjusted EBITDA margin was 43.0%.2012 Highlights 4 On a pro-forma basis (that is, assuming the combination of United Rentals results and RSC results for all periods in 2011 and 2012):
- Full year total revenue was $4.664 billion compared with $4.133 billion for 2011.
- Fourth quarter 2012 rental revenue increased 8.7% year-over-year, reflecting an increase of 7.2% in the volume of equipment on rent and an increase of 6.0% in rental rates year-over-year. 5 Full year rental revenue increased 13.2% year-over-year, reflecting an increase of 11.4% in the volume of equipment on rent and an increase of 6.9% in rental rates.
- Fourth quarter adjusted EBITDA was $553 million and adjusted EBITDA margin was 44.3%, an increase of $104 million and 580 basis points, respectively, from the same period last year. Full year adjusted EBITDA was $1.988 billion and adjusted EBITDA margin was 42.6%, an increase of $494 million and 650 basis points, respectively, from 2011.
- Flow-through, which represents the year-over-year change in adjusted EBITDA divided by the year-over-year change in total revenue, was 125.3% for the fourth quarter and 93.0% for the full year.
- For the fourth quarter, time utilization decreased 90 basis points year-over-year to 68.7% and full year time utilization decreased 30 basis points to 67.5%.
- For the fourth quarter, the company generated $141 million of proceeds from used equipment sales at a gross margin of 39.7%, compared with $134 million of proceeds at a gross margin of 31.3% the prior year. For the full year, the company generated $463 million of proceeds from used equipment sales at a gross margin of 39.7%, compared with $363 million of proceeds at a gross margin of 33.3% for 2011. 6
- The company realized cost synergies of $42 million in the fourth quarter and $104 million for the full year, and reaffirmed its fully developed goal of $230 million to $250 million on a run-rate basis.
- Total revenue in a range of $4.9 billion to $5.1 billion;
- Adjusted EBITDA in a range of $2.25 billion to $2.35 billion;
- An increase in rental rates of approximately 4.5% year-over-year;
- Time utilization of approximately 68.0%;
- Net rental capital expenditures of approximately $1.05 billion, after gross purchases of approximately $1.5 billion; and
- Full year free cash flow in the range of $400 million to $500 million.
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