GREENWICH, Conn. — United Rentals' first quarter revenue dropped to $591.9 million, down slightly from last year's first quarter total of $599.0 million. Rental revenue also declined year over year, from $446.3 million last year to $443.6 million in 2003.
United had a net loss for the quarter of $8.7 million, or 11 cents per share, compared to net income of $7.6 million or 8 cents per diluted share in last year's first quarter. However, the 2002 results are before the cumulative effect of a change in accounting principle relating to goodwill impairment that resulted in a non-cash charge, net of tax, of $288.3 million.
Same-store rental revenue rose 1.6 percent from last year, while equipment utilization dropped from 49.6 percent to 46.4 percent. Sharing of equipment between branches accounted for 10.7 percent of rental revenue, compared with 10.2 percent in last year's first quarter. Rental rates were down 2.3 percent year over year.
“Our first quarter results were dampened by continued weakness in non-residential construction and reduced state spending on roads and bridges,” said CEO Brad Jacobs. “Our results were also affected by increases in certain operating costs such as fuel, insurance and employee benefits. Rental rates, while down 2.3 percent for the quarter, declined less than we had anticipated, and we grew our revenues from national accounts and merchandise sales.”
Jacobs also mentioned first quarter seasonality in reference to a wet winter. “For the full year, we expect to generate earnings of about 90 cents per diluted share, excluding any non-cash goodwill write-off that may be required in connection with SFAS 142. We also expect to generate about $650 million of cash flow from operations and the sale of used equipment in 2003 and plan to invest about $300 million of this cash in equipment purchases for our rental fleet.”
United Rentals is No. 1 on the RER 100 with 750 locations in 47 states, seven Canadian provinces and Mexico.
