Total revenue for the first six months of 2013 for United Rentals was $2.306 billion, compared with $2.196 billion for the first six months of 2012 on a pro-forma basis, a 5-percent hike, while rental revenue for the first six months was $1.925 billion, compared to $1.833 billion in 2012, also a 5-percent increase. Pro-forma calculations include the combined totals of United Rentals and RSC Rentals before and after United’s acquisition of RSC became finalized.
Rental revenue increased 4.7 percent for United Rentals in the second quarter on a pro-forma basis, including the total of United Rentals and RSC Rentals for the entire second quarter of 2012. Adjusted EBITDA was $549 million for the quarter and adjusted EBITDA margin was 45.5 percent, an increase of $76 million and 370 basis points compared to the same period a year ago. The company has reaffirmed its outlook for the full year for adjusted EBITDA in the range of $2.25 billion to $2.35 billion.
United Rentals realized cost synergies of $60 million in the second quarter from the integration of RSC, and reaffirmed its goal of $230 million to $250 million of annual cost synergies on a fully developed basis. Flow-through, which represents year-over-year change in adjusted EBIDTDA divided by the year-over-year change in total revenue, was 107.2 percent.
Time utilization for the six-month period increased 50 basis points year-over-year to 66.1 percent. Adjusted EBITDA for the six-month period was $1 billion and adjusted EBITDA margin was 43.4 percent, an increase of $135 million and 400 basis points from the same period a year ago.
“Our strong second-quarter performance reflects our commitment to a strategy of profitable and disciplined growth,” said United Rentals CEO Michael Kneeland. “We invested more than $730 million in fleet purchases in the second quarter to fill customer orders, especially key accounts, and prepare for peak season demand. We feel comfortable about achieving our full-year outlook on rate, total revenue, EBITDA and free cash flow, while continuing to reduce our leverage.”
For the first six months of 2013, free cash flow was $77 million, after total rental and non-rental capital expenditures of $1.066 billion. The size of the rental fleet was $7.7 billion of original equipment cost on June 30, 2013, compared with $7.23 billion Dec. 31, 2012. The age of the rental fleet was 44.5 months on an OEC-weighted basis June 30, compared with 47.2 months Dec. 31.
No. 1 on the RER 100, Stamford, Conn.-based United Rentals has 824 rental locations in 49 states and 10 Canadian provinces.