STAMFORD, CT -- United Rentals, Inc. (URI) announced that it earned $143 million during the third quarter, compared with $73 million during the same period a year earlier. Total revenue was $1.311 billion and rental revenue was $1.138 billion, compared with $1.219 billion and $1.051 billion, respectively, for the same period last year.
The company's board of directors has approved a share repurchase program authorizing up to $500 million in share repurchases. The company's current intention is to complete the repurchases within 18 months.
Michael Kneeland, chief executive officer of United Rentals, said, "This was a strong quarter for us, capped by a record 49% adjusted EBITDA margin. We leveraged increasing demand for our services to put more equipment on rent at higher utilization, and with sequential monthly rate improvements throughout the quarter. This is the environment we anticipated when we set our full year financial targets, and we expect that nonresidential construction will continue to trend upward in 2014. As we plan for the coming year, our operations are in a strong position to drive margin expansion through further rate improvement and business process efficiencies."
Kneeland continued, "The $500 million share repurchase program we announced today reflects our confidence in achieving our multi-year free cash flow generation goals, while pursuing a balanced and disciplined capital allocation strategy that includes organic growth and acquisitions." The company's board of directors has approved a share repurchase program authorizing up to $500 million in share repurchases. The company's current intention is to complete the repurchases within 18 months.
Third Quarter 2013 Highlights
Rental revenue (which includes owned equipment rental revenue, re-rent revenue and ancillary items) increased 8.3% year-over-year. Within rental revenue, owned equipment rental revenue increased 8.0%, reflecting year-over-year increases of 8.2% in the volume of equipment on rent and 3.2% in rental rates. The company has reaffirmed its outlook for a full-year increase in rental rates of at least 4%.