United Rentals, Inc. · NYSE:URI
United Rentals — Investor Presentation (May 2012)
22 slides from United Rentals's investor presentation, May 14, 2012
Slide 1: Integration Update
Integration Update May 14, 2012
Slide 2: Introductory Information
Introductory Information Certain statements in this presentation are forward-looking within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements can be identified by the use of forward-looking terminology such as “believe,” “expect,” “m
Slide 3: Executive Summary
Executive Summary Construction activity improving in most key sectors, especially manufacturing Global Insight raises growth forecast for rental industry Integration activities gaining momentum Cost synergies target raised to $230 million Rental rates expected to improve 6% in 2012 3
Slide 4: U.S. Construction Growth by Sector
U.S. Construction Growth by Sector (Percent change, 2005 dollars) 2011 2012F 2013F 2014F Total Construction 1.7 5.5 8.9 17.4 Residential -1.5 9.8 16.6 26.1 Commercial -3.3 -2.9 16.8 24.4 Manufacturing -7.7 11.3 9.1 11.9 Mines & Wells 22.0 1.5 -2.7 0.3 Health Care -6.3 2.6 5.2 9.2 Public Utilities 6.
Slide 5: U.S. C & I Equipment Rental Revenue Forecast
U.S. C & I Equipment Rental Revenue Forecast 35,000 25% IHS GII Rate of Change (%) FORECAST 20% 30,000 Rate of Change (Year-over-Year, %) 15% Revenue (Million US$) 25,000 10% 5% 20,000 0% -5% 15,000 -10% 10,000 -15% -20% 5,000 -25% 0 -30% 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 U.S. Rental
Slide 6: Canadian C & I Equipment Rental Revenue Growth Forecast
Canadian C & I Equipment Rental Revenue Growth Forecast 3,500 25% Rate of Change (%) IHS GII FORECAST 20% 3,000 Rate of Change (Year-over-Year, %) 15% Revenue (Million US$) 2,500 10% 5% 2,000 0% 1,500 -5% 1,000 -10% -15% 500 -20% 0 -25% 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Canadian Rent
Slide 7: United Rentals Regional Map
United Rentals Regional Map 13 Field Regions, Including Specialty Rentals, Provide Comprehensive Coverage Across North America 7
Slide 8: Two Weeks Post-close: Integration Accomplishments
Two Weeks Post-close: Integration Accomplishments Field leadership team in place Employee playbooks distributed and in-use, to ease transition at branches Cross-company visibility of fleet provided at the branch level, enabling easy sharing of equipment Launched employee microsite Held sen
Slide 9: Targeting $230M in Cost Synergies
Targeting $230M in Cost Synergies Cost Saving Opportunities Increasing Cost Synergy Targets Other efficiencies Branch Consolidation 31% 34% Regional Corporate overhead field overhead 10% 26% Cost Savings Actions Already Underway 9
Slide 10: Upcoming Milestones and Key Activities
Upcoming Milestones and Key Activities Rental rate improvement through: Rollout CORE across combined company Enhance value proposition and service to customers Optimize rental agreements with largest customers Realign salesforce territories to ensure maximum effectiveness Consolidate IT
Slide 11: Q1 '12 Recap
Q1 ’12 Recap Standalone URI Standalone RSC Rental revenue of $523M (+20.5%) Rental revenue of $346M (+27.4%) Rates +6.3% YOY Rates +8.2% YOY REVENUE AND RATES Rates -0.1% sequentially Rates +0.5% sequentially Total revenue of $656M (+25.4%) Total revenue of $408M (+24.8%) OEC-on-Re
Slide 12: April 2012 Update
April 2012 Update Standalone URI Standalone RSC Rental revenue of $188M (+19.2%) Rental revenue of $120M (+19.6%) Rates +7.3% YOY Rates +7.9% YOY REVENUE AND RATES Rates +0.7% sequentially Rates +0.3% sequentially Total revenue of $231M (+23.2%) Total revenue of $139M (+19.5%) OEC-
Slide 13: FY '12 Outlook and Financial Metrics
FY ’12 Outlook and Financial Metrics Standalone URI 1 As Reported (GAAP) 2 Pro-Forma RATES Approximately +5.0% NA Approximately +6.0% TIME Approximately +0.5pts Approximately +0.5pts Approximately +1.0pts UTILIZATION Capex of ~$1.0B Capex of $1.3-$1.4B Capex of $1.5-$1.6B RENTAL CA
Slide 14: FY '12 Outlook and Financial Metrics
FY ’12 Outlook and Financial Metrics Converting RSC‟s AP to URI‟s terms results in a negative impact of $200M WORKING CAPITAL ~5% better purchase price from vendors RSC fleet impacted by GAAP purchase accounting; assets will be stepped-up by USED MARGINS ~21%; will lower GAAP used margins Ad
Slide 15: Flexible Capital Structure Provides Ample Liquidity
Flexible Capital Structure Provides Ample Liquidity ($M) March 31, 2012 (1) Over $700M available Senior Secured Bank Debt: liquidity, including cash, at ABL Facility $994 merger close A/R Securitization $230 Senior Secured Notes: 5.75% Notes Due 2018 $750 Senior Unsecured Notes: Post-merger, rep
Slide 16: Debt Maturity Profile as of March 31, 2012
Debt Maturity Profile as of March 31, 2012 (1) ($M) $2,400 $793 $886 ABL ABL Unused Unused $1,500 $750 $1,325 $750 7.375% Senior $1,107(2) Unsecure ABL Used d Notes $750 $700 7.625% $650 Senior $200 10.25% Unsecured Senior Notes Notes $750 5.75% $300 Senior $500 Secured $500 8.375% $70 A/R Unused 8.
Slide 17: Pro Forma Leverage Ratio Set to Decline
Pro Forma Leverage Ratio Set to Decline (1) 5 4.6 (2) (3)(4) 4.0 4 3.3 2.9 (5)(6) 3 2.8 2.2 2 1 0 2011 2012 2013 URI Standalone Combined Companies 1 Leverage Ratio calculated as total debt and QuIPs excluding original issuance discounts and premiums divided by adjusted EBITDA. 2 Proforma assumes tra
Slide 18: Glossary of Terms
Glossary of Terms As Reported (GAAP): FY ‟12 audited financial statements will include four months of stand-alone URI and eight months of combined. Comparison to FY ‟11 are based on URI (as reported) standalone Pro-forma: Assumes RSC acquisition completed as of January 1, 2011. FY ‟11 and FY ‟12
Slide 19: Appendix
Appendix
Slide 20: EBITDA and Adjusted EBITDA GAAP Reconciliation
EBITDA and Adjusted EBITDA GAAP Reconciliation EBITDA represents the sum of net income (loss), provision (benefit) for income taxes, interest expense, net, interest expense- subordinated convertible debentures, depreciation of rental equipment, and non-rental depreciation and amortization. Adjusted
Slide 21: Reconciliation of Net Cash Provided by Operating Activities to EBITDA
Reconciliation of Net Cash Provided by Operating Activities to EBITDA and Adjusted EBITDA Three Months Ended March 31, 2012 Net cash provided by operating activities $ 254 Adjustments for items included in net cash provided by operating activities but excluded from the calculation of EBITDA: Amortiz
Slide 22: RSC Holdings Adjusted EBITDA GAAP Reconciliation
RSC Holdings Adjusted EBITDA GAAP Reconciliation RSC HOLDINGS INC. AND SUBSIDIARIES EBITDA and Adjusted EBITDA. EBITDA, a supplemental non-GAAP financial Adjusted EBITDA GAAP Reconciliations measure, is defined as consolidated net income (loss) before net interest (in thousands) expense, income taxe