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EXHIBIT 99.1
[LOGO] United
Rentals
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FOR IMMEDIATE RELEASE
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UNITED RENTALS ANNOUNCES REVISED OUTLOOK FOR
FOURTH QUARTER 2000 AND FULL YEAR 2001
GREENWICH, CT, December 18, 2000 - United Rentals, Inc. (NYSE:URI)
announced today that it expects revenues for the fourth quarter ending December
31, 2000 to be approximately $750 million, or 12% below previously expected
levels. Earnings for the quarter are expected to be approximately $0.40 per
share, compared with analysts' consensus estimates of $0.62 per share. The
Company expects that revenues for the full year 2000 will be approximately $2.92
billion, a 31% increase over the $2.23 billion reported in 1999, and that
earnings per share for the year will be approximately $1.89, a 15% increase over
the $1.65 reported for 1999.
Bradley Jacobs, chairman and chief executive officer, said, "Our revised
projections for the fourth quarter reflect unusually bad weather in several
parts of the country and the impact of TEA-21 project delays on our traffic
control business. In addition, the slowing economy has reduced demand for
equipment rentals from many of our customers. In our projections for 2001, we
are assuming that the weakness in the economy will accelerate."
The Company anticipates that rental revenues for 2001 will be approximately
$2.37 billion (up 15% from projected results for 2000), revenues from the sale
of used equipment will be approximately $100 million (down 71%), and sales of
equipment, merchandise and other revenues will be approximately $535 million (up
4%), for total anticipated 2001 revenues of $3.0 billion. The Company also
projects 2001 earnings per share to be $2.00 to $2.10, a 6 to 11% increase over
projected 2000 results, but below analysts' consensus estimates of $2.53 per
share. The projected decrease in earnings primarily reflects the planned
reduction in used equipment sales.
Mr. Jacobs continued, "We are responding to the softness in the economy by
reducing our planned capital expenditures for new equipment, decreasing the
amount of used equipment we intend to sell, and taking steps to improve our
overall cost structure. These actions are designed to substantially increase our
free cash flow from operations next year. We anticipate free cash flow from
operations in 2001 will be approximately $390 million, or about $300 million
more than previously expected.
"Notwithstanding the current economic environment, we remain confident
about the underlying strength of the equipment rental industry. We will continue
to benefit from the longer term trend that has more customers renting equipment
rather than buying."
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The Company will conduct an investor conference call at 9:00 AM EST today
to discuss its revised outlook. Interested parties can participate in this call
by dialing 1-913-981-5509. The conference call will also be simultaneously
broadcast over the Internet at www.vcall.com and on the Company's web site at
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www.unitedrentals.com.
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United Rentals, Inc. is the largest equipment rental company in North
America, with an integrated network of more than 740 locations in 47 states,
seven Canadian provinces, and Mexico. The Company's 15,000 employees serve over
1.2 million customers including construction and industrial companies,
manufacturers, utilities, municipalities, homeowners and others. The Company
offers for rent over 600 different types of equipment with a total original cost
of approximately $3.4 billion. Additional information about United Rentals is
available at the Company's web site at www.unitedrentals.com.
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Certain statements contained in this press release are forward-looking in
nature. These statements can be identified by the use of forward-looking
terminology such as "believes," "expects," "projects," "may," "will," "should,"
"on track" or "anticipate" or the negative thereof or comparable terminology, or
by discussions of strategy. The Company's business and operations are subject to
a variety of risks and uncertainties and, consequently, actual results may
materially differ from those projected by any forward-looking statements.
Factors that could cause actual results to differ from those projected include,
but are not limited to, the following: (1) unfavorable industry conditions could
lead to a decrease in demand for the Company's equipment and to a decline in
prices and rental rates, (2) governmental funding for highway and other
construction projects may not reach expected levels, (3) the Company cannot be
certain that it will have access to the additional capital that it may require
or that its cost of capital will not increase, (4) acquisitions may become more
expensive, may have undisclosed liabilities and may be more difficult to
integrate, and (5) the Company is highly dependent on the services of its senior
management. These risks and uncertainties, as well as others, are discussed in
greater detail in the Company's filings with the Securities and Exchange
Commission, including its most recent Annual Report on Form 10-K and its
subsequent Quarterly Reports on Form 10-Q. The Company makes no commitment to
revise or update any forward-looking statements in order to reflect events or
circumstances after the date any such statement is made.
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Investor contact: Media contact:
Robert Miner Brandy Bergman
United Rentals, Inc. Citigate Sard Verbinnen
(203) 622-3131 (212) 687-8080
[email protected] [email protected]
