United Rentals’ revenue in the fourth quarter of 2013 rose to $1.338 billion, with rental revenue at $1.133 billion, compared with $1.249 billion and $1.036 billion, respectively, for the same period in 2012.
On a GAAP basis, the company reported fourth quarter net income of $140 million, or $1.31 per diluted share, compared with $41 million, or $0.40 per diluted share, for the same period the prior year.
For the full year 2013, total revenue was $4.955 billion and rental revenue was $4.196 billion. This represents a 6.2 percent increase from 2012’s total revenue of $4.664 billion and a 7 percent increase from $3.920 billion in 2012 rental revenue. On a GAAP basis, full year net income was $387 million, or $3.64 per diluted share.
Adjusted EPS for the quarter was $1.59 per diluted share, compared with $1.27 per diluted share for the same period the prior year. Adjusted EBITDA was $651 million and adjusted EBITDA margin was 48.7 percent for the quarter. Adjusted EPS for the full year was $4.91 per diluted share, compared with $3.76 per diluted share for 2012. Adjusted EBITDA was $2.293 billion and adjusted EBITDA margin was 46.3 percent for the full year.
Within rental revenue, owned equipment rental revenue increased 7.8 percent for the full year, reflecting year-over-year increases of 6.9 percent in the volume of equipment on rent and 4.2 percent in rental rates.
Flow-through, which represents the year-over-year change in adjusted EBITDA divided by the year-over-year change in total revenue, was 110.1 percent for the fourth quarter of 2013 and 104.8 percent for the full year.
Time utilization increased 60 basis points year-over-year to 69.3 percent for the fourth quarter of 2013. Full year time utilization increased 70 basis points to a company record 68.2 percent.
The company generated $134 million of proceeds from used equipment sales at a gross margin of 46.3 percent for the fourth quarter of 2013, compared with $141 million of proceeds at a gross margin of 39.7 percent the prior year. For the full year 2013, the company generated $490 million of proceeds from used equipment sales at a gross margin of 44.9 percent, compared with $463 million of proceeds at a gross margin of 39.7 percent for 2012.
The company realized $59 million of cost synergies in the fourth quarter of 2013, and $236 million for the full year, related to the integration of RSC.
“2013 was a year of unparalleled achievement for our company, both operationally and in terms of value creation,” said Michael Kneeland, CEO of United Rentals. “We reported record results for full year revenue, EBITDA, EBITDA margin and EPS, due to the disciplined execution of our strategy and our successful integration of RSC. We also generated $421 million of operational free cash flow, while continuing to grow our fleet in an improving marketplace. We ended on a strong note, with year-over-year increases in rate and time utilization, positioning us well for 2014."
In 2014, United Rentals expects total revenue in a range of $5.25 billion to $5.45 billion and adjusted EBITDA in a range of $2.45 billion to $2.55 billion. The company also expects an increase in rental rates of approximately 4 percent year-over-year.