United Rentals Announces Second Quarter 2007 Results



    $0.60 Diluted EPS from Continuing Operations Increased 11%

    EBITDA Increased $24 Million to $295 Million

    GREENWICH, CONN., August 1 /CNW/ - United Rentals, Inc. (NYSE:   URI) today
announced second quarter 2007 continuing operations diluted earnings per share
of $0.60, an increase of 11% compared with $0.54 for the second quarter 2006.
Income from continuing operations for the second quarter 2007 increased 14% to
$67 million, compared with $59 million for the second quarter 2006. Total
continuing operations revenues of $966 million for the second quarter
increased 5% from the same period last year.

    Net income for the second quarter 2007 of $67 million, or $0.60 per
diluted share, included a year-over-year reduction of $6 million after-tax, or
$0.05 per diluted share, in bad debt expense reflecting improved accounts
receivable collection experience, write-off trends and credit management. This
improvement was offset by a non-cash increase in interest expense of $4
million after-tax, or $0.03 per diluted share, related to the mark-to-market
impact of certain interest rate swaps and a $3 million after-tax charge, or
$0.02 per diluted share, within the income tax provision to correct income tax
benefits recognized in prior periods. By comparison, net income for the second
quarter 2006 was $56 million, or $0.51 per diluted share, including the
discontinued operation after-tax loss of $3 million, or $0.03 per diluted
share. Net income for 2006 included charges of $0.05 per diluted share to
correct previously reported depreciation expense and provide for a tax
contingency.

    The size of the rental fleet, as measured by the original equipment cost,
was $4.3 billion and the age of the rental fleet was 37 months at June 30,
2007, compared with $3.9 billion and 39 months at year-end 2006, and $4.0
billion and 38 months at June 30, 2006.

    Second Quarter 2007 Financial Highlights from Continuing Operations

    For the second quarter 2007 compared with last year's second quarter:

    --  EBITDA, a non-GAAP measure, improved $24 million to $295 million.

    --  Time utilization, on a larger fleet, improved 3.7 percentage points,
more than offsetting a 1.2% decline in rental rates.

    --  Same-store rental revenue increased 3.5%.

    --  Free cash flow usage decreased by $77 million

    --  SG&A expense ratio improved 1.2 percentage points to 15.2% of
revenues.

    --  Return on invested capital at June 30, 2007, improved 0.8 percentage
points to 14.0%.

    Michael Kneeland, chief executive officer for United Rentals, said, "Our
strong performance in the second quarter reflects the initial impact of our
strategy to refocus on our core business of equipment rental and drive more
profitable revenue growth. We achieved significantly higher time utilization
on a larger fleet, offsetting a modest decline in rental rates. Our EBITDA
margin and SG&A expense ratio both improved in response to a number of
internal initiatives put in place in the second quarter."

    Six Months Ended June 30, 2007

    For the first half 2007, the company reported continuing operations
diluted earnings per share of $0.90, an increase of 15% compared with $0.78
for the first half 2006. Income from continuing operations increased 18% to
$99 million for the first half 2007 compared with $84 million for the same
period last year. Total continuing operations revenues of $1.8 billion for the
first half 2007 increased 5% from the first half 2006.

    Net income for the first half 2007 was $97 million, or $0.88 per diluted
share, including the discontinued operation after-tax loss of $2 million or
$0.02 per diluted share. Net income for the first half 2007 included a
year-over-year reduction of $6 million after-tax, or $0.05 per diluted share,
in bad debt expense, offset by a non-cash increase in interest expense of $3
million after-tax, or $0.02 per diluted share, related to the mark-to-market
impact of certain interest rate swaps and a $3 million after-tax charge, or
$0.02 per diluted share, within the income tax provision to correct income tax
benefits recognized in prior periods. By comparison, net income for the first
half 2006 was $76 million, or $0.71 per diluted share, including the
discontinued operation after-tax loss of $8 million, or $0.07 per diluted
share, as well as the second quarter 2006 charges of $.05 per diluted share.

    Free Cash Flow

    Free cash usage for the second quarter 2007 was $77 million after total
rental and non-rental capital expenditures of $361 million, compared with free
cash usage of $154 million after total rental and non-rental capital
expenditures of $390 million for the same period last year. The year-over-year
improvement of $77 million in free cash flow usage, a non-GAAP measure, was
largely the result of positive working capital generation and lower total
rental and non-rental capital expenditures in 2007.

    For the first half of 2007, free cash usage was $162 million after total
rental and non-rental capital expenditures of $657 million, compared with free
cash usage of $110 million after total rental and non-rental capital
expenditures of $650 million for the same period last year. The year-over-year
reduction in free cash flow was largely the result of $105 million of lower
working capital generation in the first quarter 2007, partially offset by $62
million of improved working capital generation in the second quarter 2007.

    The company's total cash balance was $104 million at June 30, 2007, a
decrease of $15 million from December 31, 2006, and a decrease of $104 million
from June 30, 2006.

    Return on Invested Capital (ROIC)

    Return on invested capital was 14.0% for the twelve months ended June 30,
2007, an improvement of 0.8 percentage points from the same period last year.
The company's ROIC metric uses operating income for the trailing twelve months
divided by the averages of stockholders' equity, debt and deferred taxes, net
of average cash. The company reports ROIC to provide information on the
company's efficiency and effectiveness in deploying its capital and improving
shareholder value.

    Merger Agreement

    On July 23, 2007, the company announced that it had signed a definitive
merger agreement to be acquired by affiliates of Cerberus Capital Management,
L.P. The signing followed the April 10, 2007 announcement that the board of
directors had authorized a process to explore a broad range of strategic
alternatives to maximize shareholder value. The board of directors has
approved the merger agreement and has recommended the adoption of the merger
agreement by United Rentals stockholders. Stockholders will be asked to vote
on the proposed transaction at a special meeting on a date to be announced.
The company currently expects the transaction to close in fourth quarter 2007.

    Completion of the transaction is subject to customary closing conditions,
including approval by United Rentals stockholders and regulatory review, but
is not subject to a financing condition. The acquiring Cerberus affiliate has
obtained debt and equity financing commitments for the transactions
contemplated by the merger agreement, the aggregate proceeds of which will be
sufficient for it to pay the aggregate merger consideration, related fees and
expenses and any required refinancings or repayments of existing company
indebtedness.

    Under the terms of the merger agreement, the company may continue to
solicit proposals for alternative transactions from third parties through
August 31, 2007. There can be no assurances that this solicitation will result
in an alternative transaction. The company does not intend to disclose
developments with respect to this solicitation process unless and until its
board of directors has made a decision regarding any alternative proposals
that may be made.

    Due to the signing of the merger agreement and the expected timing of the
closing, the company has discontinued providing earnings guidance and will not
hold a second quarter earnings conference call.

    Additional Information on Second Quarter 2007 Results and Status of SEC
Inquiry

    For additional information concerning the company's second quarter 2007
results, including segment performance for its general rentals and trench
safety, pump and power businesses, as well as the status of the previously
announced SEC inquiry of the company and related matters, please see the
company's second quarter 2007 Form 10-Q filed today with the SEC. The second
quarter 2007 Form 10-Q is available online at www.unitedrentals.com, as is the
company's historical financial model.

    About United Rentals

    United Rentals, Inc. is the largest equipment rental company in the
world, with an integrated network of over 690 rental locations in 48 states,
10 Canadian provinces and Mexico. The company's more than 12,000 employees
serve construction and industrial customers, utilities, municipalities,
homeowners and others. The company offers for rent over 20,000 classes of
rental equipment with a total original cost of $4.3 billion. United Rentals is
a member of the Standard & Poor's MidCap 400 Index and the Russell 2000
Index(R) and is headquartered in Greenwich, Conn. Additional information about
United Rentals is available at www.unitedrentals.com.

    Certain statements in this press release are forward-looking statements
within the meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These statements generally can be identified by
words such as "believes," "expects," "plans," "intends," "projects,"
"forecasts," "may," "will," "should," "on track" or "anticipates," or the
negative thereof or comparable terminology, or by discussions of vision,
strategy or outlook. Our businesses and operations are subject to a variety of
risks and uncertainties, many of which are beyond our control, and,
consequently, actual results may differ materially from those expected by any
forward-looking statements. Factors that could cause actual results to differ
from those expected, and therefore also could cause significant fluctuations
in the price of our common stock, include, but are not limited to, the
following: (1) the occurrence of any event, change or other circumstances that
could give rise to the termination of the merger agreement, (2) the inability
to complete the merger due to the failure to obtain stockholder approval or
the failure to satisfy other conditions to the completion of the merger,
including the expiration or termination of the waiting periods under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976 and under the antitrust
and anti-competition laws of Canada, (3) risks that the proposed transaction
disrupts current plans and operations and the potential difficulties in
employee retention as a result of the merger, (4) certain significant costs,
fees and expenses related to the merger, such as legal and accounting fees,
remain payable regardless of whether or not the proposed merger is
consummated, (5) under certain circumstances, if the merger is not completed,
we may be required to pay a termination (break-up) fee of up to $100,000,000,
(6) weaker or unfavorable economic or industry conditions can reduce demand
and prices for our products and services, (7) non-residential construction
spending or governmental funding for infrastructure and other construction
projects may not reach expected levels, (8) we may not always have access to
capital at desirable rates for our businesses or growth plans, (9) any
companies we acquire could have undiscovered liabilities, may strain our
management capabilities or may be difficult to integrate, (10) rates we can
charge may be less than anticipated, or costs we incur may be more than
anticipated, (11) we are subject to an ongoing inquiry by the SEC, and there
can be no assurance as to its outcome, or any other potential consequences
thereof for us, and (12) we may incur additional significant costs and
expenses in connection with the SEC inquiry, the class action lawsuits and
derivative actions that were filed in light of the SEC inquiry, the U.S.
Attorney's Office requests for information, or other litigation, regulatory or
investigatory matters related to the SEC inquiry, the proposed merger or
otherwise. For a fuller description of these and other possible uncertainties,
please refer to our Annual Report on Form 10-K for the year ended December 31,
2006, as well as to our subsequent filings with the SEC. Our forward-looking
statements contained herein speak only as of the date hereof, and we make no
commitment to update or publicly release any revisions to forward-looking
statements in order to reflect new information or subsequent events,
circumstances or changes in expectations.

    IMPORTANT ADDITIONAL INFORMATION AND WHERE TO FIND IT:

    In connection with the proposed merger, United Rentals will file a proxy
statement with the SEC. INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ THE
PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT
INFORMATION ABOUT THE MERGER AND THE PARTIES TO THE MERGER. Investors and
security holders may obtain a free copy of the proxy statement (when
available) and other relevant documents filed with the SEC from the SEC's
website at www.sec.gov. United Rentals security holders and other interested
parties will also be able to obtain, without charge, a copy of the proxy
statement and other relevant documents (when available) by directing a request
by mail to the company at Five Greenwich Office Park, Greenwich, CT 06831, or
by telephone to (203) 622-3131, or from the United Rentals website at
www.unitedrentals.com.

    United Rentals and its directors and officers may be deemed to be
participants in the solicitation of proxies from United Rentals stockholders
with respect to the merger. Information about United Rentals directors and
officers and their ownership of United Rentals common stock and other
securities is set forth in the United Rentals proxy statements and Annual
Reports on Form 10-K, previously filed with the SEC, and will be set forth in
the proxy statement relating to the merger when it becomes available.

    
                             UNITED RENTALS, INC
           CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                 (Dollars in millions, except per share data)

                            Three Months Ended        Six Months Ended
                                 June 30,                 June 30,
                         ------------------------ ------------------------
                           2007    2006  % Change   2007    2006  % Change
                         ------- ------- -------- ------- ------- --------

    Revenues:
    Equipment rentals    $   660 $   630     4.8% $ 1,228 $ 1,181     4.0%
    Sales of rental
     equipment                83      84   (1.2%)     165     161     2.5%
    New equipment sales       67      61     9.8%     121     112     8.0%
    Contractor supplies
     sales                   111     103     7.8%     205     186    10.2%
    Service and other
     revenues                 45      41     9.8%      88      78    12.8%
                         ------- -------          ------- -------
    Total revenues           966     919     5.1%   1,807   1,718     5.2%
                         ------- -------          ------- -------

    Cost of revenues:
    Cost of equipment
     rentals, excluding
     depreciation            301     284              582     554
    Depreciation of
     rental equipment        108     100              210     197
    Cost of rental
     equipment sales          60      59              118     113
    Cost of new
     equipment sales          56      51              100      93
    Cost of contractor
     supplies sales           89      85              167     152
    Cost of service and
     other revenue            21      19               40      38
                         ------- -------          ------- -------
    Total cost of
     revenues                635     598     6.2%   1,217   1,147     6.1%
                         ------- -------          ------- -------

    Gross profit             331     321     3.1%     590     571     3.3%

    Selling, general and
     administrative
     expenses                147     151   (2.6%)     295     297   (0.7%)
    Non-rental
     depreciation and
     amortization             13      17  (23.5%)      25      27   (7.4%)
                         ------- -------          ------- -------

    Operating income         171     153    11.8%     270     247     9.3%
    Interest expense,
     net                      55      51              102     100
    Interest expense -
     subordinated
     convertible
     debentures                3       3                5       7
    Other (income)
     expense, net            (3)     (1)              (3)       -
                         ------- -------          ------- -------

    Income from
     continuing
     operations before
     provision for
     income taxes            116     100    16.0%     166     140    18.6%

    Provision for income
     taxes                    49      41               67      56
                         ------- -------          ------- -------

    Income from
     continuing
     operations               67      59    13.6%      99      84    17.9%

    Loss from
     discontinued
     operation, net of
     taxes                     -     (3)              (2)     (8)
                         ------- -------          ------- -------

    Net income           $    67 $    56    19.6% $    97 $    76    27.6%
                         ------- -------          ------- -------

    Diluted earnings per
     share:
       Income from
        continuing
        operations       $  0.60 $  0.54    11.1% $  0.90 $  0.78    15.4%
       Loss from
        discontinued
        operation              -  (0.03)           (0.02)  (0.07)
                         ------- -------          ------- -------
       Net income        $  0.60 $  0.51    17.6% $  0.88 $  0.71    23.9%
                         ------- -------          ------- -------
    

    
                             UNITED RENTALS, INC
              CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                            (Dollars in millions)

                                                  June 30,    December 31,
                                                ------------- ------------
                                                 2007   2006      2006
                                                ------ ------ ------------
    ASSETS
    Cash and cash equivalents                   $  104 $  208 $        119
    Accounts receivable, net                       553    497          502
    Inventory                                      162    172          139
    Assets of discontinued operation                 -    160          107
    Prepaid expenses and other assets               61     60           56
    Deferred taxes                                  48     63           82
                                                ------ ------ ------------
      Total current assets                         928  1,160        1,005

    Rental equipment, net                        2,882  2,661        2,561
    Property and equipment, net                    399    320          359
    Goodwill and other intangible assets, net    1,397  1,372        1,376
    Other long-term assets                          62     80           65
                                                ------ ------ ------------

    Total assets                                $5,668 $5,593 $      5,366
                                                ------ ------ ------------


    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current maturities of long-term debt        $  121 $   26 $         37
    Accounts payable                               348    280          218
    Accrued expenses and other liabilities         263    271          322
    Liabilities related to discontinued
     operation                                       -     32           22
                                                ------ ------ ------------
      Total current liabilities                    732    609          599

    Long-term debt                               2,509  2,868        2,519
    Subordinated convertible debentures            146    222          146
    Deferred taxes                                 449    354          463
    Other long-term liabilities                    130    138          101
                                                ------------- ------------

    Total liabilities                            3,966  4,191        3,828
                                                ------ ------ ------------

    Common stock                                     1      1            1
    Additional paid-in capital                   1,457  1,417        1,421
    Retained earnings (accumulated deficit)        166   (79)           69
    Accumulated other comprehensive income          78     63           47
                                                ------ ------ ------------

    Total stockholders' equity                   1,702  1,402        1,538
                                                ------ ------ ------------

    Total liabilities and stockholders' equity  $5,668 $5,593 $      5,366
                                                ------ ------ ------------
    

    
                             UNITED RENTALS, INC.
         CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                            (Dollars in millions)


                                       Three Months Ended Six Months Ended
                                            June 30,          June 30,
                                       ------------------ ----------------
                                         2007      2006     2007    2006
                                       -------- --------- ------- --------
    Cash Flows From Operating
     Activities:
    Income from continuing operations  $     67 $      59 $    99 $     84
    Adjustments to reconcile income
     from continuing operations to net
     cash provided by operating
     activities:
    Depreciation and amortization           120       117     235      224
    Amortization of deferred financing
     costs                                    3         2       5        5
    Gain on sales of rental equipment      (23)      (25)    (47)     (48)
    Gain on sales of non-rental
     equipment                              (1)         -     (2)      (1)
    Non-cash adjustments to equipment         2        12       -        9
    Amortization of deferred
     compensation                             6         4      10        5
    Increase in deferred taxes               12        32      20       46
    Changes in operating assets and
     liabilities:
     (Increase) decrease in accounts
      receivable                           (53)      (55)    (50)       16
     Decrease (increase) in inventory         7        15    (23)     (17)
     Decrease (increase) in prepaid
      expenses and other assets               8       (5)     (8)        3
     Increase (decrease) in accounts
      payable                                 4      (47)     130       57
     Increase (decrease) in accrued
      expenses and other liabilities         44        40    (46)     (13)
                                       -------- --------- ------- --------
    Net cash provided by operating
     activities - continuing
     operations                             196       149     323      370
    Net cash (used in) provided by
     operating activities -
     discontinued operation                   -       (6)       6      (1)
                                       -------- --------- ------- --------
    Net cash provided by operating
     activities                             196       143     329      369
                                       -------- --------- ------- --------

    Cash Flows From Investing
     Activities:
    Purchases of rental equipment         (339)     (373)   (604)    (623)
    Purchases of non-rental equipment      (22)      (17)    (53)     (27)
    Proceeds from sales of rental
     equipment                               83        84     165      161
    Proceeds from sales of non-rental
     equipment                                5         3       7        9
    Proceeds from sale of discontinued
     operation                                -         -      68        -
    Purchases of other companies              -      (16)    (21)     (39)
                                       -------- --------- ------- --------
    Net cash (used in) investing
     activities - continuing
     operations                           (273)     (319)   (438)    (519)
    Net cash provided by (used in)
     investing activities -
     discontinued operation                   -       (3)       1      (5)
                                       -------- --------- ------- --------
    Net cash (used in) investing
     activities                           (273)     (322)   (437)    (524)
                                       -------- --------- ------- --------

    Cash Flows From Financing
     Activities:
    Proceeds from debt                      186         -     227        -
    Payments on debt                      (133)       (7)   (165)     (15)
    Proceeds from the exercise of
     common stock options                    13        63      17       63
    Shares repurchased and retired            -       (1)     (1)      (1)
    Excess tax benefits from share-
     based payment arrangements               8         -      10        -
                                       -------- --------- ------- --------

    Net cash provided by financing
     activities                              74        55      88       47

    Effect of foreign exchange rates          3         1       5        -
                                       -------- --------- ------- --------

    Net decrease in cash and cash
     equivalents                              -     (123)    (15)    (108)
    Cash and cash equivalents at
     beginning of period                    104       331     119      316
                                       -------- --------- ------- --------

    Cash and cash equivalents at end
     of period                         $    104 $     208 $   104 $    208
                                       -------- --------- ------- --------
    

    
                             UNITED RENTALS, INC.
                       SEGMENT PERFORMANCE (UNAUDITED)
                            (Dollars in millions)

                            Three Months Ended        Six Months Ended
                                 June 30,                 June 30,
                         ------------------------ ------------------------
                           2007    2006  % Change   2007    2006  % Change
                         ------- -------          ------- -------

    General Rentals
    Total revenues       $   908 $   864     5.1% $ 1,700 $ 1,614     5.3%
    Operating income         156     141    10.6%     245     222    10.4%
    Operating margin       17.2%   16.3%  0.9 pts   14.4%   13.8%  0.6 pts

    Trench Safety, Pump
     and Power
    Total revenues            58      55     5.5%     107     104     2.9%
    Operating income          15      12    25.0%      25      25        -
    Operating margin                      4.1 pts                    (0.6
                           25.9%   21.8%            23.4%   24.0%     pts)

    Total United Rentals
    Total revenues       $   966 $   919     5.1% $ 1,807 $ 1,718     5.2%
    Operating income         171     153    11.8%     270     247     9.3%
    Operating margin       17.7%   16.6%  1.1 pts   14.9%   14.4%  0.5 pts



              DILUTED EARNINGS PER SHARE CALCULATION (UNAUDITED)
                 (Dollars in millions, except per share data)

                            Three Months Ended        Six Months Ended
                                 June 30,                 June 30,
                         ------------------------ ------------------------
                           2007    2006  % Change   2007    2006  % Change
                         ------- -------          ------- -------

    Income from
     continuing
     operations          $    67 $    59    13.6% $    99 $    84    17.9%
    Loss from
     discontinued
     operation, net of
     taxes                     -     (3)              (2)     (8)
                         ------- -------          ------- -------
    Net income                67      56    19.6%      97      76    27.6%
    Convertible debt
     interest                  1       -                1       1
    Subordinated
     convertible debt
     interest                  1       2                3       -
                         ------- -------          ------- -------
    Net income available
     to common
     stockholders        $    69 $    58    19.0% $   101 $    77    31.2%

    Weighted average
     common shares          82.2    79.4     3.5%    81.7    78.4     4.2%
    Series C and D
     preferred shares       17.0    17.0        -    17.0    17.0        -
    Convertible shares       6.5     6.5        -     6.5     6.5        -
    Stock options,
     warrants,
     restricted stock
     units and phantom
     shares                  6.0     7.1  (15.5%)     5.8     7.1  (18.3%)
    Subordinated
     convertible
     debentures              3.3     5.0  (34.0%)     3.3       -
                         ------- -------          ------- -------
    Total weighted
     average diluted
     shares                115.0   115.0        -   114.3   109.0     4.9%

    Diluted earnings
     available to common
      stockholders:
       Income from
        continuing
        operations       $  0.60 $  0.54    11.1% $  0.90 $  0.78    15.4%
       Loss from
        discontinued
        operation              -  (0.03)           (0.02)  (0.07)
                         ------- -------          ------- -------
       Net income        $  0.60 $  0.51    17.6% $  0.88 $  0.71    23.9%
                         ------- -------          ------- -------
    

    
                             UNITED RENTALS, INC.
                      FREE CASH FLOW GAAP RECONCILIATION
                            (Dollars in millions)

    We define "free cash flow" as (i) net cash provided by operating
     activities - continuing operations less (ii) purchases of rental and
     non-rental equipment plus (iii) proceeds from sales of rental and
     non-rental equipment. Management believes 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 Generally Accepted Accounting principles ("GAAP").
     Accordingly, free cash flow should not be considered an alternative
     to net income or cash flow from operating activities as indicators of
     operating performance or liquidity. Information reconciling forward-
     looking free cash flow expectations to a GAAP financial measure is
     unavailable to the company without unreasonable effort. The table
     below provides a reconciliation between net cash flow provided by
     operating activities and free cash flow.




                                       Three Months Ended Six Months Ended
                                            June 30,          June 30,
                                       ------------------ ----------------
                                          2007     2006     2007    2006
                                       --------- -------- ------- --------

    Net cash provided by operating     $     196 $    149 $   323 $    370
     activities - continuing
     operations
    Purchases of rental equipment          (339)    (373)   (604)    (623)
    Purchases of non-rental equipment       (22)     (17)    (53)     (27)
    Proceeds from sales of rental
     equipment                                83       84     165      161
    Proceeds from sales of non-rental
     equipment                                 5        3       7        9
                                       --------- -------- ------- --------
    Free Cash Flow Usage               $    (77) $  (154) $ (162) $  (110)
                                       --------- -------- ------- --------
    

    
                             UNITED RENTALS, INC.
                          EBITDA GAAP RECONCILIATION
                            (Dollars in millions)

    "EBITDA" represents the sum of income from continuing operations
     before provision for income taxes, interest expense, net, interest
     expense-subordinated convertible debentures, depreciation-rental
     equipment and non-rental depreciation and amortization. Management
     believes EBITDA provides useful information about operating
     performance and period over period growth. However, EBITDA is not a
     measure of financial performance or liquidity under GAAP and
     accordingly should not be considered an alternative to net income or
     cash flow from operating activities as an indicator of operating
     performance or liquidity. Information reconciling forward-looking
     EBITDA expectations to a GAAP financial measure is unavailable to the
     company without unreasonable effort. The table below provides a
     reconciliation between income from continuing operations before
     provision for income taxes and EBITDA.


                                       Three Months Ended Six Months Ended
                                            June 30,          June 30,
                                       ------------------ ----------------
                                          2007     2006     2007    2006
                                       --------- -------- ------- --------

    Income from continuing operations
     before provision for income taxes $     116 $    100 $   166 $    140
    Interest expense, net                     55       51     102      100
    Interest expense - subordinated
     convertible debentures                    3        3       5        7
    Depreciation - rental equipment          108      100     210      197
    Non-rental depreciation and
     amortization                             13       17      25       27

                                       --------- -------- ------- --------
    EBITDA                             $     295 $    271 $   508 $    471
                                       --------- -------- ------- --------
    




For further information:

For further information: Hyde Park Financial Communications Fred
Bratman, 203-618-7318 Cell: 917-847-4507 fbratman@hydeparkfin.com

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UNITED RENTALS, INC.

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