United Rentals posted first-quarter total revenue of $656 million with rental revenue of $523 million, compared with $523 million and $434 million respectfully in last year’s first quarter, increases of 25.4 percent and 20.5 percent. Adjusted EBITDA was $231 million and adjusted EBITDA margin was 35.1 percent for the quarter, an increase of $86 million and 7.5 percentage points year over year.
United reported first-quarter net income of $13 million, or 17 cents per diluted share, compared with a net loss of $20 million, or 34 cents per diluted share in last year’s first quarter.
Rental rates increased 6.3 percent for the quarter compared with Q111, and the volume of equipment on rent increased 18.4 percent. United expects an increase in rental rates of about 5 percent for 2012.
Time utilization was 62.3 percent, an increase of 1.2 percentage points compared to last year’s first quarter, The size of the company’s fleet increased by $264 million since year-end 2011, measured on an original equipment cost basis, and was 16.2-percent larger compared to the first quarter of 2011.
“Our performance surpassed all prior first quarters, with record time utilization, record fleet growth, and record adjusted EBITDA, both dollars and margin,” said CEO Michael Kneeland. “Once again, we drove profitable growth faster than the construction recovery. Both core areas of our business — general rentals and specialty operations — realized higher rates year over year on a fleet that was about $600 million larger on average. These results speak volumes about the effectiveness of our strategy and the ongoing secular shift toward renting.
“Current market dynamics create a favorable environment for our combination with RSC. We expect to complete the transaction on April 30, and move immediately into integration mode. The benefits are substantial, including more than $200 million in cost synergies, an unparalleled branch footprint, and significant penetration into the industrial sector.”
United Rentals entered into a definitive agreement to acquire RSC in a cash-and-stock transaction for $4.2 billion, including the assumption of RSC’s debt. Both United Rentals and RSC stockholders are scheduled to vote on the merger April 27. If approved, United Rentals expects the transaction to close April 30.
United Rentals, based in Greenwich, Conn., is No. 1 on the RER 100. Scottsdale, Ariz.-based RSC is No. 2.