United Rentals(US:URI)2022-10-25 16:00Financial Performance - Total revenues for the three months ended September 30, 2022, increased to $3,051 million, up 17.5% from $2,596 million in the same period of 2021[22]. - Net income for the nine months ended September 30, 2022, was $1,466 million, representing a 62% increase from $905 million in the same period of 2021[22]. - Basic earnings per share for Q3 2022 was $8.69, up 53.9% from $5.65 in Q3 2021[22]. - Comprehensive income for the three months ended September 30, 2022, was $511 million, compared to $357 million in the same period of 2021[26]. - Net income for the three months ended September 30, 2022, was $606 million, compared to $409 million for the same period in 2021, representing a 48% increase[126]. - For the nine months ended September 30, 2022, net income rose by $561 million, or 62.0%, with a net income margin of 17.6%[144]. Revenue Breakdown - Equipment rentals revenue rose to $2,732 million, a 19.9% increase compared to $2,277 million in Q3 2021[22]. - Owned equipment rentals accounted for 73% of total revenues for the nine months ended September 30, 2022, generating $6,053 million compared to $4,937 million in 2021, reflecting a 22.7% increase[52]. - Total equipment rentals for the nine months ended September 30, 2022, reached $7,369 million, up from $5,895 million in 2021, marking a growth of 25.0%[50]. - Equipment rentals accounted for 88% of total revenues for the nine months ended September 30, 2022[131]. - For the three months ended September 30, 2022, equipment rentals represented 90% of total revenues[159]. Assets and Liabilities - Total assets as of September 30, 2022, increased to $21,419 million, compared to $20,292 million at December 31, 2021[19]. - Total liabilities rose to $15,066 million as of September 30, 2022, compared to $14,301 million at the end of 2021[19]. - The company’s total liabilities were $13.363 billion as of September 30, 2022[207]. Cash Flow and Liquidity - Cash flows from operating activities for the nine months ended September 30, 2022, were $3,182 million, compared to $3,021 million in 2021, indicating a 5.3% increase[39]. - Cash and cash equivalents decreased to $76 million as of September 30, 2022, from $144 million at December 31, 2021[19]. - The company had available liquidity of $2.843 billion as of September 30, 2022, which includes cash and cash equivalents[135]. - Free cash flow for the nine months ended September 30, 2022 was $1.140 billion, a decrease of $114 million compared to $1.254 billion for the same period in 2021[199]. Capital Expenditures and Investments - Capital expenditures for the nine months ended September 30, 2022, totaled $2,638 million, compared to $2,450 million for the same period in 2021[104]. - The company repurchased common stock totaling $1,058 million during the nine months ended September 30, 2022, compared to only $33 million in the same period of 2021[39]. - The company plans to fund cash requirements for operations, equipment purchases, and share repurchases from existing cash sources and may seek additional financing as market conditions permit[190]. Debt and Interest - Total debt as of September 30, 2022, was $9,910 million, an increase from $9,685 million as of December 31, 2021[115]. - The weighted-average interest rate on average debt outstanding was 2.7% as of September 30, 2022[116]. - The company was in compliance with all covenants and provisions of its debt facilities as of September 30, 2022[121]. Operational Efficiency - The company executed a strategy focused on improving profitability through revenue growth, margin expansion, and operational efficiencies[132]. - The gross margin from sales of rental equipment increased by 14.3 percentage points due to improved pricing[143]. - SG&A expenses benefited from better fixed cost absorption, contributing to improved margins across equipment rentals and sales[143]. Acquisitions and Market Position - The acquisition of General Finance was completed for an aggregate consideration of $1.032 billion, funded through available cash and drawings on the ABL facility[83][84]. - The company is pursuing strategic acquisitions to expand its core equipment rental business, enhancing its market position[136]. Miscellaneous - The company had deferred revenue of $126 million as of September 30, 2022, compared to $83 million as of December 31, 2021[57]. - The company’s foreign subsidiaries accounted for $839 million, or 10 percent, of total revenue of $8.346 billion during the nine months ended September 30, 2022[211]. - There were no changes in internal control over financial reporting during the quarter ended September 30, 2022 that materially affected internal control[215].