United Rentals Releases Preliminary Third Quarter Earnings, Raises 2005 Outlook

November 2, 2005 — Recently releasing financial highlights from its Q3 numbers, United Rentals, Inc., Greenwich, Conn., expects diluted earnings per share of $0.76 for the third quarter of 2005. The company raised its full year 2005 outlook for diluted earnings per share to $1.68 to $1.75 from the previous range of $1.60 to $1.70. The company also expects to generate approximately $100 million of free cash flow after total capital expenditures of $800 million to $850 million.

Comparing third quarter this year to last year's figures:

Total revenues increased 15.9% to $984 million.
Same-store rental revenues increased 13.0%.
Contractor supplies sales increased 46.2% to $89 million.
Dollar utilization was 72.7%, an increase of 5.3 percentage points.
Rental rates for the general rentals segment increased 5.0%.

As previously announced, the company has delayed reporting final results for 2004 and will delay finalizing results for 2005 interim periods until after it reports 2004 results. Accordingly, the company will delay filing its third quarter 2005 Form 10-Q beyond the due date and the five-day extension period. The earnings, financial highlights, other selected financial data and 2005 outlook provided in this report are preliminary and subject to change based on completion of the 2004 audit or the outcome of the previously announced SEC inquiry and the related internal review.

“Our strong performance this quarter reflects continuing success in improving rental rates, expanding our rental fleet, increasing time utilization and driving contractor supplies revenue growth,” said Wayland Hicks, chief executive officer. “Dollar utilization of 72.7% in the third quarter was the highest we have ever achieved.”

According to Hicks, to capitalize on future growth opportunities the company will continue to open new branches in attractive markets. “We expect to open 35 new branches in 2005, of which 30 are already operating,” he said. “These new branches increase our presence in existing markets and expand our product offerings and footprint into new markets. In addition, we are growing our sales of contractor supplies at a rapid pace. These sales were up 46% compared with last year's third quarter, and we now have completed our plan to open nine regional distribution centers throughout the United States and Canada to support future growth. These significant investments should allow us to capitalize on the continuing improvement in private non-residential construction spending.”