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United Rentals Announces Fourth Quarter And Full Year 2012 Results And Provides 2013 Outlook

Stocks in this article: URI

About United Rentals

United Rentals, Inc. is the largest equipment rental company in the world, with an integrated network of 836 rental locations in 49 states and 10 Canadian provinces. The company’s approximately 11,300 employees serve construction and industrial customers, utilities, municipalities, homeowners and others. The company offers for rent approximately 3,300 classes of equipment with a total original cost of $7.23 billion. United Rentals is a member of the Standard & Poor’s MidCap 400 Index and the Russell 2000 Index® and is headquartered in Greenwich, Conn. Additional information about United Rentals is available at unitedrentals.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. These statements can generally be identified by the use of forward-looking terminology such as “believe,” “expect,” “may,” “will,” “should,” “seek,” “on-track,” “plan,” “project,” “forecast,” “intend” or “anticipate,” or the negative thereof or comparable terminology, or by discussions of vision, strategy or outlook. These statements are based on current plans, estimates and projections, and, therefore, you should not place undue reliance on them. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. Factors that could cause actual results to differ materially from those projected include, but are not limited to, the following: (1) a slowdown in the recovery of North American construction and industrial activities, which decreased during the economic downturn and significantly affected our revenues and profitability, may reduce demand for equipment and prices that we can charge; (2) a decrease in levels of infrastructure spending, including lower than expected government funding for such projects; (3) our highly leveraged capital structure, which requires us to use a substantial portion of our cash flow for debt service and can constrain our flexibility in responding to unanticipated or adverse business conditions; (4) restrictive covenants in our debt agreements, which could limit our financial and operational flexibility; (5) noncompliance with covenants in our debt agreements, which could result in termination of our credit facilities and acceleration of outstanding borrowings; (6) inability to access the capital that our business may require; (7) inability to manage credit risk adequately or to collect on contracts with customers; (8) incurrence of impairment charges; (9) the outcome or other potential consequences of litigation and other claims and regulatory matters relating to our business, including certain claims that our insurance may not cover; (10) an increase in our loss reserves to address business operations or other claims and any claims that exceed our established levels of reserves; (11) incurrence of additional costs and expenses (including indemnification obligations) in connection with litigation, regulatory or investigatory matters; (12) increases in our maintenance and replacement costs as we age our fleet, and decreases in the residual value of our equipment; (13) inability to sell our new or used fleet in the amounts, or at the prices, we expect; (14) challenges associated with past or future acquisitions, such as undiscovered liabilities, costs, integration issues and/or the inability to achieve the cost and revenue synergies expected; (15) management turnover and inability to attract and retain key personnel; (16) our rates and time utilization being less than anticipated; (17) our costs being more than anticipated, the inability to realize expected savings in the amounts or time frames planned and the inability to obtain key equipment and supplies; (18) disruptions in our information technology systems; (19) competition from existing and new competitors; (20) labor difficulties and labor-based legislation affecting labor relations and operations generally; and (21) the costs of complying with environmental and safety regulations. For a more complete description of these and other possible risks and uncertainties, please refer to our Annual Report on Form 10-K for the year ended December 31, 2012, as well as to our subsequent filings with the SEC. The forward-looking statements contained herein speak only as of the date hereof, and we make no commitment to update or publicly release any revisions to forward-looking statements in order to reflect new information or subsequent events, circumstances or changes in expectations.

           
UNITED RENTALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In millions, except per share amounts)
 
Three Months Ended Year Ended
December 31, December 31,
2012       2011 2012       2011
Revenues:
Equipment rentals $ 1,036 $ 589 $ 3,455 $ 2,151
Sales of rental equipment 141 93 399 208
Sales of new equipment 29 24 93 84
Contractor supplies sales 23 19 87 85
Service and other revenues 20   21   83   83  
Total revenues 1,249   746   4,117   2,611  
Cost of revenues:
Cost of equipment rentals, excluding depreciation 401 252 1,392 992
Depreciation of rental equipment 208 111 699 423
Cost of rental equipment sales 99 69 274 142
Cost of new equipment sales 23 19 74 67
Cost of contractor supplies sales 17 13 62 58
Cost of service and other revenues 6   7   29   31  
Total cost of revenues 754   471   2,530   1,713  
Gross profit 495 275 1,587 898
Selling, general and administrative expenses 176 109 588 407
RSC merger related costs 13 19 111 19
Restructuring charge 6 14 99 19
Non-rental depreciation and amortization 64   18   198   57  
Operating income 236 115 591 396
Interest expense, net 196 58 512 228
Interest expense—subordinated convertible debentures, net 1 2 4 7
Other income, net   (1 ) (13 ) (3 )
Income from continuing operations before (benefit) provision for income taxes 39 56 88 164
(Benefit) provision for income taxes (2 ) 28   13   63  
Income from continuing operations $ 41 $ 28 $ 75 $ 101
Income from discontinued operation, net of taxes $   $ 1   $   $  
Net income $ 41   $ 29   $ 75   $ 101  
Diluted earnings per share:
Income from continuing operations $ 0.40 $ 0.39 $ 0.79 $ 1.38
Income from discontinued operation $   $   $   $  
Net income $ 0.40   $ 0.39   $ 0.79   $ 1.38  
 
           
UNITED RENTALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
 
December 31, 2012 December 31, 2011
ASSETS
Cash and cash equivalents $ 106 $ 36
Accounts receivable, net 793 464
Inventory 68 44
Prepaid expenses and other assets 111 75
Deferred taxes 265   104  
Total current assets 1,343 723
Rental equipment, net 4,966 2,617
Property and equipment, net 428 366
Goodwill and other intangible assets, net 4,170 372
Other long-term assets 119   65  
Total assets $ 11,026   $ 4,143  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Short-term debt and current maturities of long-term debt $ 630 $ 395
Accounts payable 286 206
Accrued expenses and other liabilities 435   263  
Total current liabilities 1,351 864
Long-term debt 6,679 2,592
Subordinated convertible debentures 55 55
Deferred taxes 1,302 470
Other long-term liabilities 65   59  
Total liabilities 9,452   4,040  
Temporary equity 31 39
Common stock 1 1
Additional paid-in capital 1,997 487
Accumulated deficit (424 ) (499 )
Treasury stock (115 )
Accumulated other comprehensive income 84   75  
Total stockholders’ equity 1,543   64  
Total liabilities and stockholders’ equity $ 11,026   $ 4,143  
 
           
UNITED RENTALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Millions)
 
Three Months Ended Year Ended
December 31, December 31,
2012       2011 2012       2011
Cash Flows From Operating Activities:
Net income $ 41 $ 29 $ 75 $ 101
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 272 129 897 480
Amortization of deferred financing costs and original issue discounts 6 5 23 22
Gain on sales of rental equipment (42 ) (24 ) (125 ) (66 )
Gain on sales of non-rental equipment (2 ) (2 )
Gain on sale of software subsidiary 2 (8 )
Stock compensation expense, net 9 3 32 12
RSC merger related costs 13 19 111 19
Restructuring charge 6 14 99 19
Loss on extinguishment of debt securities and ABL amendment 72 3 72 3
Loss on retirement of subordinated convertible debentures 1 2
(Decrease) increase in deferred taxes (21 ) 23 (16 ) 39
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable 8 (2 ) (86 ) (62 )
Decrease (increase) in inventory 20 14 (2 ) (3 )
Increase in prepaid expenses and other assets (1 ) (4 ) (18 ) (15 )
(Decrease) increase in accounts payable (121 ) (33 ) (223 ) 68
Decrease in accrued expenses and other liabilities (38 ) (18 ) (108 ) (5 )
Net cash provided by operating activities 226 159 721 612
Cash Flows From Investing Activities:
Purchases of rental equipment (163 ) (143 ) (1,272 ) (774 )
Purchases of non-rental equipment (21 ) (12 ) (97 ) (36 )
Proceeds from sales of rental equipment 141 93 399 208
Proceeds from sales of non-rental equipment 5 2 31 13
Purchases of other companies, net of cash acquired (78 ) (1,175 ) (276 )
Proceeds from sale of software subsidiary     10    
Net cash used in investing activities (38 ) (138 ) (2,104 ) (865 )
Cash Flows From Financing Activities:
Proceeds from debt 1,127 430 6,013 1,892
Payments of debt, including subordinated convertible debentures (1,268 ) (430 ) (4,370 ) (1,813 )
Payments of financing costs (8 ) (16 ) (75 ) (16 )
Proceeds from the exercise of common stock options 4 4 21 35
Common stock repurchased (3 ) (131 ) (7 )
Cash paid in connection with the 4 percent Convertible Senior Notes and related hedge, net (11 )
Excess tax benefits from share-based payment arrangements, net (1 )   (5 )  
Net cash (used in) provided by financing activities (149 ) (12 ) 1,453 80
Effect of foreign exchange rates (1 ) 1     6  
Net increase (decrease) in cash and cash equivalents 38 10 70 (167 )
Cash and cash equivalents at beginning of period 68   26   36   203  
Cash and cash equivalents at end of period $ 106   $ 36   $ 106   $ 36  
Supplemental disclosure of cash flow information:
Cash paid for interest, including subordinated convertible debentures $ 152 $ 62 $ 371 $ 203
Cash paid for income taxes, net 9 4 40 24
 
           
UNITED RENTALS, INC.
SEGMENT PERFORMANCE
($ in millions)
 
Three Months Ended Year Ended
December 31,   December 31,  
2012       2011       Change 2012       2011       Change
General Rentals
Reportable segment equipment rentals revenue $ 961 $ 534 80.0 % $ 3,188 $ 1,953 63.2 %
Reportable segment equipment rentals gross profit 392 201 95.0 % 1,239 643 92.7 %
Reportable segment equipment rentals gross margin 40.8 % 37.6 % 3.2pp 38.9 % 32.9 % 6.0pp
Trench Safety, Power & HVAC
Reportable segment equipment rentals revenue $ 75 $ 55 36.4 % $ 267 $ 198 34.8 %
Reportable segment equipment rentals gross profit 35 25 40.0 % 125 93 34.4 %
Reportable segment equipment rentals gross margin 46.7 % 45.5 % 1.2pp 46.8 % 47.0 % (0.2pp )
Total United Rentals
Total equipment rentals revenue $ 1,036 $ 589 75.9 % $ 3,455 $ 2,151 60.6 %
Total equipment rentals gross profit 427 226 88.9 % 1,364 736 85.3 %
Total equipment rentals gross margin 41.2 % 38.4 % 2.8pp 39.5 % 34.2 % 5.3pp
 
           
UNITED RENTALS, INC.
DILUTED EARNINGS PER SHARE CALCULATION
(In millions, except per share data)
 
Three Months Ended Year Ended
December 31, December 31,
2012       2011 2012       2011
Numerator:
Income from continuing operations $ 41 $ 28 $ 75 $ 101
Convertible debt interest—1 7/8 percent notes      
Income from continuing operations available to common stockholders $ 41 $ 28 $ 75 $ 101
Income from discontinued operation   1    
Net income available to common stockholders $ 41 $ 29 $ 75 $ 101
Denominator:
Denominator for basic earnings per share—weighted-average common shares 92.7 62.7 83.0 62.2
Effect of dilutive securities:
Employee stock options and warrants 0.8 0.7 0.7 1.0
Convertible subordinated notes—1 7/8 percent 0.2 1.0 1.0
Convertible subordinated notes—4 percent 10.9 8.4 10.6 8.5
Restricted stock units 0.6   0.6   0.5     0.6
Denominator for diluted earnings per share—adjusted weighted-average common shares 105.2 73.4 94.8 73.3
Diluted earnings per share:
Income from continuing operations $ 0.40 $ 0.39 $ 0.79 $ 1.38
Income from discontinued operation            
Net income $ 0.40 $ 0.39 $ 0.79 $ 1.38
 

UNITED RENTALS, INC. ADJUSTED EARNINGS PER SHARE GAAP RECONCILIATION

We define “Earnings per share from continuing operations – adjusted” as the sum of earnings per share from continuing operations – GAAP, as reported plus the impact of the following special items: RSC merger related costs, RSC merger related intangible asset amortization, impact on depreciation related to acquired RSC fleet and property and equipment, impact of the fair value mark-up of acquired RSC fleet and inventory, pre-close RSC merger related interest expense, impact on interest expense related to fair value adjustment of acquired RSC indebtedness, restructuring charge, asset impairment charge, loss on extinguishment of debt securities, including subordinated convertible debentures, and ABL amendment, and gain on sale of software subsidiary. Management believes adjusted earnings per share from continuing operations provides useful information concerning future profitability. However, adjusted earnings per share from continuing operations is not a measure of financial performance under GAAP. Accordingly, adjusted earnings per share from continuing operations should not be considered an alternative to GAAP earnings per share from continuing operations. The table below provides a reconciliation between earnings per share from continuing operations – GAAP, as reported, and earnings per share from continuing operations – adjusted.

           
Three Months Ended Year Ended
December 31, December 31,
2012       2011 2012       2011
Earnings per share from continuing operations, GAAP, as reported $ 0.40 $ 0.39 $ 0.79 $ 1.38
After-tax impact of:
RSC merger related costs (1) 0.08 0.25 0.72 0.25
RSC merger related intangible asset amortization (2) 0.25 0.74
Impact on depreciation related to acquired RSC fleet and property and equipment (3) (0.03 )
Impact of the fair value mark-up of acquired RSC fleet and inventory (4) 0.09 0.24
Pre-close RSC merger related interest expense (5) 0.19
Impact on interest expense related to fair value adjustment of acquired RSC indebtedness (6) (0.01 ) (0.03 )
Restructuring charge (7) 0.03 0.12 0.64 0.16
Asset impairment charge (8) 0.01 0.03 0.10 0.04
Loss on extinguishment of debt securities, including subordinated convertible debentures, and ABL amendment (9) 0.41 0.03 0.45 0.04
Gain on sale of software subsidiary (10) 0.01     (0.05 )
Earnings per share from continuing operations- adjusted $ 1.27   $ 0.82   $ 3.76   $ 1.87
 
(1)   Reflects transaction costs associated with the RSC acquisition.
(2) Reflects the amortization of the intangible assets acquired in the RSC acquisition.
(3) Reflects the impact of extending the useful lives of equipment acquired in the RSC acquisition, net of the impact of additional depreciation associated with the fair value mark-up of such equipment.
(4) Reflects additional costs recorded in cost of rental equipment sales, cost of equipment rentals, excluding depreciation, and cost of contractor supplies sales associated with the fair value mark-up of rental equipment and inventory acquired in the RSC acquisition. The costs relate to equipment and inventory acquired in the RSC acquisition and subsequently sold.
(5) In March 2012, we issued $2,825 million of debt in connection with the RSC acquisition. The pre-close RSC merger related interest expense reflects the interest expense recorded on this debt prior to the acquisition date.
(6) Reflects a reduction of interest expense associated with the fair value mark-up of debt acquired in the RSC acquisition.
(7) Reflects severance costs and branch closure charges associated with the RSC acquisition and our closed restructuring program.
(8) Primarily reflects write-offs of leasehold improvements and other fixed assets in connection with the RSC acquisition and our closed restructuring program.
(9) Reflects losses on the extinguishment of certain debt securities, including subordinated convertible debentures, and write-offs of debt issuance costs associated with the October 2011 amendment of our ABL facility.
(10) Reflects a gain recognized upon the sale of a former subsidiary that developed and marketed software.
 

UNITED RENTALS, INC. EBITDA AND ADJUSTED EBITDA GAAP RECONCILIATION (In millions)

EBITDA represents the sum of net income, income from discontinued operation, net of taxes, (benefit) provision for income taxes, interest expense, net, interest expense-subordinated convertible debentures, net, depreciation of rental equipment, and non-rental depreciation and amortization. Adjusted EBITDA represents EBITDA plus the sum of the RSC merger related costs, restructuring charge, stock compensation expense, net, the impact of the fair value mark-up of acquired RSC fleet and inventory and the gain on sale of software subsidiary. These items are excluded from adjusted EBITDA internally when evaluating our operating performance 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. 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 permit investors to gain an understanding of the factors and trends affecting our ongoing cash earnings, from which capital investments are made and debt is serviced. However, EBITDA and adjusted EBITDA are not measures of financial performance or liquidity under GAAP and, accordingly, should not be considered as alternatives to net income or cash flow from operating activities as indicators of operating performance or liquidity. The table below provides a reconciliation between net income and EBITDA and adjusted EBITDA.

           
Three Months Ended Year Ended
December 31, December 31,
2012       2011 2012       2011
Net income $ 41 $ 29 $ 75 $ 101
Income from discontinued operation, net of taxes (1 )
(Benefit) provision for income taxes (2 ) 28 13 63
Interest expense, net 196 58 512 228
Interest expense – subordinated convertible debentures, net 1 2 4 7
Depreciation of rental equipment 208 111 699 423
Non-rental depreciation and amortization 64   18   198   57
EBITDA (A) $ 508 $ 245 $ 1,501 $ 879
RSC merger related costs (1) 13 19 111 19
Restructuring charge (2) 6 14 99 19
Stock compensation expense, net (3) 9 3 32 12
Impact of the fair value mark-up of acquired RSC fleet and inventory (4) 15 37
Gain on sale of software subsidiary (5) 2     (8 )
Adjusted EBITDA (B) $ 553   $ 281   $ 1,772   $ 929
 
A)   Our EBITDA margin was 40.7% and 32.8% for the three months ended December 31, 2012 and 2011, respectively, and 36.5% and 33.7% for the year ended December 31, 2012 and 2011, respectively.
B) Our adjusted EBITDA margin was 44.3% and 37.7% for the three months ended December 31, 2012 and 2011, respectively, and 43.0% and 35.6% for the year ended December 31, 2012 and 2011, respectively.
 
(1) Reflects transaction costs associated with the RSC acquisition.
(2) Reflects severance costs and branch closure charges associated with the RSC acquisition and our closed restructuring program.
(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, cost of equipment rentals, excluding depreciation, and cost of contractor supplies sales associated with the fair value mark-up of rental equipment and inventory acquired in the RSC acquisition. The costs relate to equipment and inventory acquired in the RSC acquisition and subsequently sold.
(5) Reflects a gain recognized upon the sale of a former subsidiary that developed and marketed software.
 
           
UNITED RENTALS, INC.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO EBITDA AND ADJUSTED EBITDA
(In millions)
 
Three Months Ended Year Ended
December 31, December 31,
2012       2011 2012       2011
Net cash provided by operating activities $ 226 $ 159 $ 721 $ 612
Adjustments for items included in net cash provided by operating activities but excluded from the calculation of EBITDA:
Income from discontinued operation, net of taxes (1 )
Amortization of deferred financing costs and original issue discounts (6 ) (5 ) (23 ) (22 )
Gain on sales of rental equipment 42 24 125 66
Gain on sales of non-rental equipment 2 2
Gain on sale of software subsidiary (5) (2 ) 8
RSC merger related costs (1) (13 ) (19 ) (111 ) (19 )
Restructuring charge (2) (6 ) (14 ) (99 ) (19 )
Stock compensation expense, net (3) (9 ) (3 ) (32 ) (12 )
Loss on extinguishment of debt securities and ABL amendment (6) (72 ) (3 ) (72 ) (3 )
Loss on retirement of subordinated convertible debentures (1 ) (2 )
Changes in assets and liabilities 187 42 571 49
Cash paid for interest, including subordinated convertible debentures 152 62 371 203
Cash paid for income taxes, net 9   4   40   24  
EBITDA $ 508 $ 245 $ 1,501 $ 879
Add back:
RSC merger related costs (1) 13 19 111 19
Restructuring charge (2) 6 14 99 19
Stock compensation expense, net (3) 9 3 32 12
Impact of the fair value mark-up of acquired RSC fleet and inventory (4) 15 37
Gain on sale of software subsidiary (5) 2     (8 )  
Adjusted EBITDA $ 553   $ 281   $ 1,772   $ 929  
 
(1)   Reflects transaction costs associated with the acquisition of RSC.
(2) Reflects severance costs and branch closure charges associated with the RSC acquisition and our closed restructuring program.
(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, cost of equipment rentals, excluding depreciation, and cost of contractor supplies sales associated with the fair value mark-up of rental equipment and inventory acquired in the RSC acquisition. The costs relate to equipment and inventory acquired in the RSC acquisition and subsequently sold.
(5) Reflects a gain recognized upon the sale of a former subsidiary that developed and marketed software.
(6) Reflects losses on the extinguishment of certain debt securities and write-offs of debt issuance costs associated with the October 2011 amendment of our ABL facility.
 

UNITED RENTALS, INC. FREE CASH FLOW GAAP RECONCILIATION (In millions)

We define free cash flow (usage) as (i) net cash provided by operating activities less (ii) purchases of rental and non-rental equipment plus (iii) proceeds from sales of rental and non-rental equipment and excess tax benefits from share-based payment arrangements, net. Management believes that free cash flow provides useful additional information concerning cash flow available to meet future debt service obligations and working capital requirements. However, free cash flow (usage) is not a measure of financial performance or liquidity under GAAP. Accordingly, free cash flow (usage) should not be considered an alternative to net income or cash flow from operating activities as an indicator of operating performance or liquidity. The table below provides a reconciliation between net cash provided by operating activities and free cash flow (usage).

           
Three Months Ended Year Ended
December 31, December 31,
2012   2011 2012   2011
Net cash provided by operating activities $ 226 $ 159 $ 721 $ 612
Purchases of rental equipment (163 ) (143 ) (1,272 ) (774 )
Purchases of non-rental equipment (21 ) (12 ) (97 ) (36 )
Proceeds from sales of rental equipment 141 93 399 208
Proceeds from sales of non-rental equipment 5 2 31 13
Excess tax benefits from share-based payment arrangements, net $ (1 ) $   $ (5 ) $  
Free cash flow (usage) $ 187   $ 99   $ (223 ) $ 23  
 

1 On April 30, 2012, the company completed the acquisition of RSC Holdings, Inc. (“RSC”). The results of RSC’s operations have been combined with the Company’s results since that date.

2 Adjusted EPS is a non-GAAP measure that excludes the impact of the following special items: (i) RSC merger related costs; (ii) restructuring charge; (iii) asset impairment charge; (iv) pre-close RSC merger related interest expense; (v) impact on interest expense related to fair value adjustment of acquired RSC indebtedness; (vi) impact on depreciation related to acquired RSC fleet and property and equipment; (vii) impact of the fair value mark-up of acquired RSC fleet and inventory; (viii) RSC merger related intangible asset amortization; (ix) the gain on sale of our software subsidiary; and (x) the loss on extinguishment of debt securities, including subordinated convertible debentures, and ABL amendment. See table below for amounts.

3 Adjusted EBITDA is a non-GAAP measure that excludes the impact of the following special items: (i) RSC merger related costs; (ii) restructuring charge; (iii) stock compensation expense, net; (iv) the impact of the fair value mark-up of acquired RSC fleet and inventory; and (v) the gain on sale of our software subsidiary. See tables below for amounts.

4 Rental rate, time utilization and OEC calculations are based on the American Rental Association metrics criteria; comparisons to 2011 are based on a recast of these metrics on the same basis.

5 The favorable impact of volume increases and rental rate increases were partially offset by the impact of rental mix in both the fourth quarter and the full year. Consistent with the company’s strategic focus on larger accounts, there has been a mix shift towards monthly rentals in 2012.

6 Used equipment margins for the 2012 fourth quarter and full year exclude the impact of the fair value mark-up of acquired RSC fleet that was sold.

7 As-reported basis includes the results of RSC’s operations only from April 30, 2012 forward.

Copyright Business Wire 2010
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