United Rentals, Inc. · NYSE:URI
United Rentals — Goldman Sachs Global Capital Goods Conference 2005
17 slides from United Rentals's conference presentation, Nov 2, 2005
Slide 1: Goldman Sachs Global Capital Goods Conference 2005
Exhibit 99.1 Goldman Sachs Global Capital Goods Conference 2005 November 2, 2005
Slide 2: Introductory Information
Introductory Information Unless otherwise specified, the information in this presentation, including forward looking statements, is as of the date of our most recent quarterly public investor conference call and should not be construed as an update of such information. The company’s results for 2004
Slide 3: Company Profile
Company Profile Revenues by Line of Business Revenues by End Market Service Rental Contractor Equipment Homeowner Traffic Supplies Industrial Control Sales New 4% 9% Equipment 10% 10% 9% Sales 15% 15% 10% 10% 6% Largest equipment rental company in the world 65% 65% Private Private Non- Non- 72% 72%
Slide 4: 740 Rental Locations Across North America
740 Rental Locations Across North America 4
Slide 5: URI's Competitive Advantages
URI’s Competitive Advantages Strong brand recognition One-stop shopping Better equipment utilization through sharing Significant purchasing power Leading information technology 5
Slide 6: Diversified Equipment Mix
Diversified Equipment Mix Earthmoving & Light Equipment High Reach Trench Safety Traffic Control 6
Slide 7: Current Industry Conditions
Current Industry Conditions Private non-residential construction continues moderate improvement – Improved 5.3% in first eight months of 2005 and 4.2% in 2004 – Declined 7% in 2003 and 13% in 2002 – Still 15% below peak levels of August 2000 State budget shortfalls and TEA-21 delays postponed highwa
Slide 8: Cyclicality of Private Non-Residential Construction (YOY % Change)
Cyclicality of Private Non-Residential Construction (YOY % Change) Non-Residential Spending Trend Not Seasonally Adjusted 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% Source: U.S. Department of Commerce 8
Slide 9: URI's Performance – 2004 (preliminary)
URI’s Performance – 2004 (preliminary) URI growth outperformed rental industry and end markets 2004 results expected to meet or exceed 2004 outlook 2004 total revenues increased 8.4% to a record $3.1B 2004 rental rates increased 7.5% – Increased 2.1% in 2003 following decline of 4.8% in 2002 2004 fr
Slide 10: URI's Performance – 2005 (preliminary)
URI’s Performance – 2005 (preliminary) First nine months 2005 total revenues increased 15.1% — Increased 15.9% in third quarter First nine months 2005 rental rates increased 6.3% — Increased 5.0% in third quarter First nine months 2005 preliminary EPS of $1.45 — Third quarter preliminary EPS of $0.7
Slide 11: Revenues (preliminary)
Revenues (preliminary) Total revenues increased Total Revenues 15.1% in first nine months 2005 $ in millions Same-store rental revenues $3.5B increased 11.6% in first $4,000 $3,107 nine months of 2005; $3,500 General Rentals up 11.8%, $3,000 $2,612 Traffic Control up 9.4% $2,500 $2,270 Total revenue
Slide 12: CapEx and Free Cash Flow (preliminary)
CapEx and Free Cash Flow (preliminary) Free cash flow was $(76) million in first CapEx and Free Cash Flow nine months 2005 $ in millions after total rental $900 $825 and non-rental $800 $734 CapEx of $734 $700 $634 million $600 $507 Record free cash $500 $385 flow of $385 million $400 in 2004 was th
Slide 13: Borrowings as of September 30, 2005
Borrowings as of September 30, 2005 Total of $202 million, including LC’s, utilized on $650 million ($ in millions) September 30, 2005 revolver Senior secured bank debt: $200 million AR facility $137 Revolver undrawn Term Debt 739 Earliest significant maturity A/R securitization -- 2009 Senior unsec
Slide 14: 2005 Outlook (2004 preliminary)
2005 Outlook(2004 preliminary) Outlook Improve rental rates at ($ in millions) 2004 2005 least 5% Revenues ($ in billions) $3.1 $3.5 Grow contractor supplies Rates 7.5% 5%+ sales more than 40% Rental equipment sales $275 $260-285 Diluted EPS of $1.68-$1.75 Contractor supplies growth 22% 40%+ EBITDA
Slide 15: Conclusion
Conclusion Compelling economics support rental trend Low market penetration provides continued growth opportunities United Rentals outperforming industry and end-markets We believe rate increases, fleet expansion, new branches and contractor supplies growth will improve earnings and cash flow going
Slide 16: GAAP Reconciliation
GAAP Reconciliation Full Year First Nine Months Free Cash Flow ($ in millions) 2004 2004 2005 Net cash provided by operating activities $721 $531 $427 Purchases of rental equipment (577) (465) (678) Purchases of property and equipment (57) (42) (56) Proceeds from sales of rental equipment 275 192 22
Slide 17: Goldman Sachs Global Capital Goods Conference 2005
Goldman Sachs Global Capital Goods Conference 2005 November 2, 2005
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