Vice President, Investor Relations
United Rentals Completes Acquisition of BakerCorp and Updates Guidance to Reflect Impact
BakerCorp is a leading multinational provider of tank, pump, filtration
and trench shoring rental solutions for a broad range of industrial and
construction applications. With the acquisition,
The company has updated its 2018 guidance solely to reflect the
acquisition of BakerCorp. The new guidance includes
|Prior Outlook||Current Outlook|
|Total revenue||$7.5 billion to $7.7 billion||$7.64 billion to $7.84 billion|
|$3.675 billion to $3.775 billion||$3.715 billion to $3.815 billion|
|Net rental capital expenditures after gross purchases||$1.25 billion to $1.35 billion, after gross purchases of $1.9 billion to $2.0 billion||$1.3 billion to $1.4 billion, after gross purchases of $1.95 billion to $2.05 billion|
|Net cash provided by operating activities||$2.675 billion to $2.825 billion||$2.725 billion to $2.875 billion|
Free cash flow2 (excluding the impact of merger and restructuring related costs)
|$1.3 billion to $1.4 billion||$1.3 billion to $1.4 billion|
1 Information reconciling forward-looking adjusted EBITDA to the comparable GAAP financial measures is unavailable to the company without unreasonable effort, as discussed below.
|2 Free cash flow is a non-GAAP measure. See the Appendix hereto for amounts and a reconciliation to the most comparable GAAP measure.|
Free cash flow and adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA) are non-GAAP financial measures
as defined under the rules of the
Information reconciling forward-looking adjusted EBITDA to GAAP financial measures is unavailable to the company without unreasonable effort. The company is not able to provide reconciliations of adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of the company’s control and/or cannot be reasonably predicted, such as the provision for income taxes. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to the company without unreasonable effort. The company provides a range for its adjusted EBITDA forecast that it believes will be achieved, however it cannot accurately predict all the components of the adjusted EBITDA calculation. The company provides an adjusted EBITDA forecast because it believes that adjusted EBITDA, when viewed with the company’s results under GAAP, provides useful information for the reasons noted above. However, adjusted EBITDA is not a measure of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income or cash flow from operating activities as an indicator of operating performance or liquidity.
BakerCorp’s adjusted EBITDA is a non-GAAP financial measure as defined
under the rules of the
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995, known
as the PSLRA. Forward-looking statements involve significant risks and
uncertainties that may cause results to differ materially from those set
forth in the statements. These statements are based on current plans,
estimates and projections, and, therefore, you should not place undue
reliance on them. No forward-looking statement, including any such
statement concerning the completion and anticipated benefits of the
proposed transaction, can be guaranteed, and actual results may differ
materially from those projected.
The foregoing list of factors is not exhaustive. You should carefully
consider the foregoing factors and the other risks and uncertainties
that affect the businesses of
FREE CASH FLOW GAAP RECONCILIATION
We define “free cash flow” as net cash provided by operating activities less purchases of, and plus proceeds from, equipment. The equipment purchases and proceeds are included in cash flows from investing activities. Management believes that free cash flow provides useful additional information concerning cash flow available to meet future debt service obligations and working capital requirements. However, free cash flow is not a measure of financial performance or liquidity under GAAP. Accordingly, free cash flow should not be considered an alternative to net income or cash flow from operating activities as an indicator of operating performance or liquidity.
The table below provides a reconciliation between 2018 forecasted net cash provided by operating activities and free cash flow.
|Net cash provided by operating activities||$2,725- $2,875|
|Purchases of rental equipment||$(1,950)-$(2,050)|
|Proceeds from sales of rental equipment||$600-$700|
|Purchases of non-rental equipment, net of proceeds from sales and insurance proceeds from damaged equipment||$(75)-$(125)|
|Free cash flow (excluding the impact of merger and restructuring related payments)||$1,300- $1,400|
For United Rentals, Inc.
Ted Grace, 203-618-7122