United Rentals, Inc announced financial results for the first quarter 2015. Total revenue was $1.315 billion and rental revenue was $1.125 billion, compared with $1.178 billion and $1.005 billion, respectively, for the same period last year.
On a GAAP basis, the company reported first quarter net income of $115 million, or $1.16 per diluted share, compared with $60 million, or $0.56 per diluted share, for the same period last year.
First Quarter 2015 Highlights:
- Rental revenue (which includes owned equipment rental revenue, re-rent revenue and ancillary items) increased 11.9 percent year-over-year. Within rental revenue, owned equipment rental revenue increased 12 percent, reflecting year-over-year increases of 8.1 percent in the volume of equipment on rent and 2.9 percent in rental rates. Excluding the impact of the National Pump acquisition, rental revenue increased 7.3 percent year-over-year.
- Return on invested capital was 9 percent for the 12 months ended March 31, 2015, an increase of 1.2 percentage points from the 12 months ended March 31, 2014.
- Time utilization decreased 40 basis points year-over-year to 64.2 percent. The locations from the National Pump acquisition experienced volume and pricing pressure associated with upstream oil and gas customers, which was a primary driver of the time utilization decrease. Excluding the impact of the National Pump acquisition, time utilization was 64.5 percent.
- The company generated $116 million of proceeds from used equipment sales at an adjusted gross margin of 50.9 percent, compared with $110 million and 49.1 percent for the same period last year.
- Flow-through, which represents the year-over-year change in adjusted EBITDA divided by the year-over-year change in total revenue, was 60.6 percent for the quarter.