GREENWICH, Conn. — United Rentals recently announced financial results for the second quarter ended June 30, 2003. The company reported revenues of $728.1 million compared to $744.8 million for the second quarter 2002.
Rental revenue was 75.6 percent of total revenues, sales of rental equipment was 5.7 percent, and sales of equipment and merchandise and other revenue was 18.7 percent. Same-store rental revenue increased 1.8 percent year-over-year. Net income for the quarter was $23.4 million or 25 cents per diluted share, compared with net income of $51.1 million or 51 cents per diluted share for the same period last year.
Equipment utilization for the quarter was 58.1 percent compared to 59.8 percent in last year's second quarter, and sharing of equipment among branches accounted for 12.4 percent of rental revenue compared with 11.9 percent in last year's second quarter. Rental rates were up 1.5 percent from a year ago.
Bradley Jacobs, chairman and CEO said, “Our results continued to be constrained by weakness in our end markets. Non-residential construction was down nearly 10 percent year-over-year according to Department of Commerce data, and demand for our traffic equipment was well below expectations as budget shortfalls caused several key states to postpone spending on roads and bridges. In addition, our results were negatively impacted by higher operating costs, the additional interest expense from our recently issued senior notes, and a planned reduction in used equipment sales.
Despite the challenging environment, rental rates increased year-over-year for the first time in eight quarters and same store rental revenues increased as well. The improvement in rates was 1.5 percent for the full quarter and 2.5 percent for the month of June.”
The company's revised forecast for the full year anticipates earnings of 70 to 80 cents per diluted share, cash flow from operations of $450 million to $460 million, and proceeds from the sale of used equipment of $160 million to $170 million.
For the six-month period ended June 30, 2003, revenues were $1.32 billion, compared to $1.34 billion for the first six months of 2002. Net income for the six-month period was $14.7 million or 16 cents per diluted share in 2003, compared with net income of $58.7 million or 65 cents per diluted share in 2002. The results for 2002 are before the cumulative effect of a change in accounting principle relating to goodwill that resulted in a non-cash charge, net of tax, of $288.3 million.
United Rentals is No. 1 on the RER 100.
