GREENWICH, Conn. — United Rentals filed its annual reports on Form 10-K for 2004 and 2005 with the Securities and Exchange Commission March 31, bringing the company into compliance with the annual reporting requirements of the New York Stock Exchange.
“The filing of our annual financial statements represents another significant step forward for our company,” said United CEO Wayland Hicks. “Our strong performance in 2005 has continued into the first quarter, with total revenues of $530 million for the first two months, an increase of 14 percent from 2005.”
The company's final results for 2005 include revenues of $3.56 billion, as previously announced, and diluted earnings per share of $1.80, compared with preliminary earnings per share of $1.81, reflecting an additional restatement related to the allocation of the purchase price of acquisitions completed since July 2001. A review of those transactions indicated that a portion of the purchase price allocated to goodwill — which is not amortized — should have been recorded as a separate intangible asset (customer relationships), which is amortized. As a result of this additional re-statement, United's financial results filed recently reflect an annual decrease in reported pre-tax income of about $3 million in 2005 and 2004, $2 million in 2003 and $1 million in 2002.
The company also filed its quarterly reports on Form 10-Q for the interim periods of the year ended Dec. 31, 2005, with the SEC. United Rentals has now filed all Exchange Act reports, which had been delayed, and all reports required under its senior debt facility and other indebtedness. The company is now eligible to use short form registration statements for its employee stock plans. As a result, employees will be able to exercise vested options and rights under these plans and to sell the shares purchased into the open market, subject to company policies and applicable law.
The previously announced SEC inquiry is ongoing.
In other news, the company last month announced that Keith Wimbush joined its board of directors and that the board designated Michael Gross as lead director.
Wimbush has held numerous legal executive positions including senior vice president and general counsel for Diageo North America and its predecessor businesses; and vice president and corporate counsel for Johanna Dairies, a division of John Labatt Limited.
Gross has been a director of United Rentals since January 1999. He is one of the founding partners of Apollo Advisors L.P. and has been a partner of that company since its formation in 1990. Gross serves as chairman of the board of directors of Apollo Investment Corp., a closed-end investment company of which he is a founder. “We are delighted to welcome Keith Wimbush to our board and look forward to benefiting from his considerable legal expertise and corporate experience,” said Brad Jacobs, chairman of United Rentals. “Keith's appointment brings the company's board of directors to 12 members, of whom nine are independent directors. The designation of Michael Gross as lead director recognizes his experience and continued contribution to the board. We welcome his expanded involvement.”
United Rentals is No. 1 on the RER 100.
