United Rentals Reveals Strong First Quarter

May 16, 2006 • United Rentals, Greenwich, Conn., recently announced first quarter 2006 diluted earnings per share of $0.19, an increase of 73% compared with $0.11 for the first quarter 2005. Net income increased 67% to $20 million for the first quarter 2006 from $12 million for the first quarter 2005. Total revenues of $846 million for the first quarter increased 15.6% from the first quarter 2005. Free cash flow for the first quarter was $47 million after total capital expenditures of $264 million.

 

The company raised its full year 2006 outlook for diluted earnings per share to $2.17 to $2.27 from the previous range of $2.13 to $2.23. The company also expects to generate $4.0 billion in total revenues in 2006, and approximately $175 million of free cash flow after total capital expenditures of approximately $900 million.

 

“Improved rental rates and higher time utilization on a larger rental fleet, together with excellent contractor supplies growth, helped us continue our strong performance this quarter,” said Wayland Hicks, CEO. “We achieved record first quarter dollar utilization of 58.6%. Same-store rental revenues were up 13.5%, reflecting growth across all three segments of our business. Our total revenue growth of 15.6% outpaced growth in our primary end market, private non-residential construction, where spending increased 10.6% in the first quarter according to Department of Commerce data.”

 

As a result of its performance, Hicks says the company is raising its outlook for diluted earnings per share to a range of $2.17 to $2.27 on total revenues of $4.0 billion.