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Q2 2015 Earnings Call – United Rentals

United Rentals · Jul 29, 2015 · 20 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q2 2015 Earnings Call – United Rentals – slide 1
    Executing for Growth and Returns Quarterly Financial Review Update Second Quarter 2015
  2. Q2 2015 Earnings Call – United Rentals – slide 2
    Q2 2015 Results Rates +1.5% 66.6%, decrease of 150 bps Time Utilization 706M or 49.4%, reflecting Adjusted EBITDA increases of 43M or 2.0 pp Adjusted EBITDA 143.3% Flow-Through LTM ROIC 8.9%, increase of 0.8 pp Adjusted…
  3. Q2 2015 Earnings Call – United Rentals – slide 3
    2015 Updated Outlook Total Revenue 5.8B to 5.9B Adjusted EBITDA 2.80B to 2.85B Increase in Rental Rates (year- Approximately 0.5% over-year) Time Utilization Approximately 67.5% Approximately 1.1B, after gross Net Rental Capital…
  4. Q2 2015 Earnings Call – United Rentals – slide 4
    United Leads Industry in Time Utilization 90% 85% 80% 75% 67.0% 67.8% 70% URI Total 65% 66.2% 60% 63.2% 61.1% 55% Non-URI Bench 57.7% 50% 45% 40% Oct Mar Dec Nov Dec Feb Apr May Jul Nov Jun…
  5. Q2 2015 Earnings Call – United Rentals – slide 5
    Non Oil & Gas Locations Maintain Growth Trend Locations with 20% Upstream Exposure* 650 OEC on Rent (M) 600 550 2014 500 2015 450 400 Time Ute 20% All Others Q2 2014 68.8% 67.9% Locations…
  6. Q2 2015 Earnings Call – United Rentals – slide 6
    U.S. Economy Forecast to Grow Real GDP and Industrial Production Real GDP and its Components 8 Percent Change 2015 2016 2017 Real GDP 2.2 3.1 2.7 4 Consumption 3.0 3.0 2.9 Percent Change 0 Residential Investment 7.9 11.7…
  7. Q2 2015 Earnings Call – United Rentals – slide 7
    U.S. Total Construction Starts for 2015-2018 Billions of Dollars 2015 2016 2017 2018 675.7 730.6 819.6 830.5 Total Construction +14% +8% +12% +1% 189.8 229.2 289.0 287.5 Single Family Housing +16% +21% +26% -1% 76.8 83.8 84.1 79.5…
  8. Q2 2015 Earnings Call – United Rentals – slide 8
    U.S. Real Construction Growth by Sector Real Investment in Structures Percent Change 2014 2015 2016 2017 Total Construction 4.7 2.7 8.1 6.5 Residential 1.5 7.9 11.8 8.2 Commercial 13.0 12.3 12.9 9.8 Manufacturing 12.7 27.9 0.7…
  9. Q2 2015 Earnings Call – United Rentals – slide 9
    U.S. Construction and Industrial Equipment Regional Outlook Expects Strong Growth Through 2019 United States West South Central West North Central South Atlantic Pacific New England Mountain Middle Atlantic East South Central…
  10. Q2 2015 Earnings Call – United Rentals – slide 10
    3,300 Equipment Classes with Original Cost of 8.9B Booms and Earth Moving Forklifts Trench and Lifts Other Total/ Average % of Q2 2015 36.1% 12.9% 18.3% 32.7% Rental Revenue Time 72.3% 61.8% 78.2% 52.4% 66.6% Utilization*…
  11. Q2 2015 Earnings Call – United Rentals – slide 11
    Managing Fleet with a Life Cycle Approach Selling Oldest Fleet Rental Capex and Used Sales (M)* Age of Used Sales in Months 88 88 1,580 1,701 87 1,390 1,321 1,016 85 83 83 (363) (240) (463) (490) (544) 2011 2012 2013 2014…
  12. Q2 2015 Earnings Call – United Rentals – slide 12
    Lean Processes Drive Real Value Run Rate of 33 Million Towards 100 Million Goal LEAN Activity Productivity Gains Value Levers Kaizen Decreased Outside Improved processes in Hauling Costs Cost per Delivery yards, shops, dispatch…
  13. Q2 2015 Earnings Call – United Rentals – slide 13
    Expect to Generate about 2.3B in Free Cash Flow* Millions 800+ 725 - 775 700+ 574 421 2013 2014 2015 2016 2017 Actual Forecast End Market Strength and Fleet Discipline Contributing to Powerful FCF *Excludes merger…
  14. Q2 2015 Earnings Call – United Rentals – slide 14
    Assumptions Driving FCF Outlook Gross rental CapEx spend of about 1.6B; net rental CapEx spend of 1.1B for the next 3 years About 0.5% rental rate growth in 2015 and on average 2% thereafter Cash Taxes Remaining Federal NOLs…
  15. Q2 2015 Earnings Call – United Rentals – slide 15
    Leverage Ratio Continues Decline (1) 2 4.6 3 3.6 3.0 2.9 2.8 Dry Powder 2011 2012 2013 2014 2015 2016 2017 Actual Forecast 2.5x 3.5x Target Leverage Range of the Cycle Lower End of Target Range in 2016 (1) Leverage…
  16. Q2 2015 Earnings Call – United Rentals – slide 16
    Building a Bridge to Higher Returns* 14% (1.9%) 1.8% 0.2% 10% 12% Internal 1.6% 0.2% 10.8% Hurdle Rate 10% 8.9% WACC Range 8% 6% 4% 2% 0% 5 Jun-15 Rate 1 Fleet Lean 4 Fleet and Cost Business Approx 2018 2 Growth and…
  17. Q2 2015 Earnings Call – United Rentals – slide 17
    Adjusted Earnings Per Share GAAP Reconciliation We define earnings per share adjusted as the sum of earnings per share GAAP, as reported plus the impact of the following special items: merger related costs, merger related intangible…
  18. Q2 2015 Earnings Call – United Rentals – slide 18
    EBITDA and Adjusted EBITDA GAAP Reconciliation EBITDA represents the sum of net income, provision for income taxes, interest expense, net, depreciation of rental equipment, and non-rental depreciation and amortization. Adjusted EBITDA…
  19. Q2 2015 Earnings Call – United Rentals – slide 19
    Reconciliation of Net Cash Provided by Operating Activities to EBITDA and Adjusted EBITDA Three Months Ended Six Months Ended Millions June 30, June 30, 2015 2014 2015 2014 Net cash provided by operating activities 575 546 1,250…
  20. Q2 2015 Earnings Call – United Rentals – slide 20
    Free Cash Flow GAAP Reconciliation We define free cash (usage) flow as (i) net cash provided by operating activities less (ii) purchases of rental and non-rental equipment plus (iii) proceeds from sales of rental and non-rental equipment.…

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