United Rentals, Inc (URI) has reported 9.47 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $153 million, or $1.80 a share in the quarter, compared with $169 million, or $1.81 a share for the same period last year. On an adjusted basis, earnings per share were at $2.67 for the quarter compared with $2.19 in the same period last year. Revenue during the quarter was stable at $1,523 million, when compared with the previous year period. Gross margin for the quarter expanded 59 basis points over the previous year period to 43.14 percent. Total expenses were 73.60 percent of quarterly revenues, down from 73.93 percent for the same period last year. This has led to an improvement of 33 basis points in operating margin to 26.40 percent.
Operating income for the quarter was $402 million, compared with $397 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $749 million compared with $744 million in the prior year period. At the same time, adjusted EBITDA margin improved 33 basis points in the quarter to 49.18 percent from 48.85 percent in the last year period.
Michael Kneeland, chief executive officer of United Rentals, said, "We were very pleased with our fourth quarter results, which benefited from broad-based demand. While rental rates remained a year-on-year headwind, our sequential rate performance was somewhat better than expected, and OEC volumes were robust through the end of the quarter. These factors helped us exceed the upper-band of guidance on total revenue, adjusted EBITDA and free cash flow for the full year."
Operating cash flow falls marginally
United Rentals, Inc has generated cash of $1,953 million from operating activities during the year, down 2.11 percent or $42 million, when compared with the last year. The company has spent $859 million cash to meet investing activities during the year as against cash outgo of $1,170 million in the last year. It has incurred net capital expenditure of $79 million on net basis during the year, down 7.06 percent or $6 million from year ago.
The company has spent $964 million cash to carry out financing activities during the year as against cash outgo of $775 million in the last year period.
Cash and cash equivalents stood at $312 million as on Dec. 31, 2016, up 74.30 percent or $133 million from $179 million on Dec. 31, 2015.
Working capital increases sharply
United Rentals, Inc has recorded an increase in the working capital over the last year. It stood at $177 million as at Dec. 31, 2016, up 190.16 percent or $116 million from $61 million on Dec. 31, 2015. Current ratio was at 1.15 as on Dec. 31, 2016, up from 1.05 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 18 days for the quarter from 17 days for the last year period. Days sales outstanding were almost stable at 28 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 4 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went down to 13 days for the quarter from 14 for the same period last year.
Debt comes down marginally
United Rentals, Inc has recorded a decline in total debt over the last one year. It stood at $7,790 million as on Dec. 31, 2016, down 4.56 percent or $372 million from $8,162 million on Dec. 31, 2015. Total debt was 64.98 percent of total assets as on Dec. 31, 2016, compared with 67.55 percent on Dec. 31, 2015. Debt to equity ratio was at 4.73 as on Dec. 31, 2016, down from 5.53 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
