United Rentals, Inc. (NYSE:URI) Q4 2014 Earnings Conference Call - Final Transcript

Jan 22, 2015 • 11:00 am ET

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United Rentals, Inc. (NYSE:URI) Q4 2014 Earnings Conference Call - Final Transcript

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Presentation
Executive
Michael Kneeland

Well thanks, operator, and welcome and good morning everyone. Now I want to thank everybody for joining us on today's call. So let's get started with 2014. It was a great year for us and we've got another strong year in 2015. Our message today is about progress, discipline and consistency. These fourth quarter calls tend to frame the year-end as a hard stop, but in reality our performance is a continuum and that's especially true this year, when we went into 2015 with so much momentum. Now I'll talk about it in a minute, but first I want to give you the last 12 months that are due, because we turned in some outstanding results.

Our rates were up 4.5% in line with our guidance. 2014 was the fourth straight year we moved the rates higher and we still see opportunity for improvement. We had record time utilization of 68.8% for the full year. And our return on invested capital was also a record of 8.8%. Together, they helped drive more than $2.7 billion

Operator
operator

Good morning, and welcome to the United Rentals' Fourth Quarter and Full Year 2014 Investor Conference Call. Please be advised that this call is being recorded. Before we begin, note that the company's press release, comments made on today's call and responses to your questions contain forward-looking statements. The company's business and operations are subject to a variety of risks and uncertainties, many of which are beyond its control, and consequently, actual results may differ materially from those projected.

A summary of these uncertainties is included in the Safe Harbor statement contained in the company's earnings release. For a more complete description of these and other possible risks, please refer to the company's Annual Report on Form 10-K for the year ended December 31st, 2014, as well as subsequent filings with the SEC. You can access these filings on the company's website at www.ur.com.

Please note that United Rentals has no obligation and makes no commitment to update or publicly release any revisions to forward-looking statements in order to reflect new information or subsequent events, circumstances or changes in expectations. You should also note that the company's earnings release, investor presentation and today's call include references to free cash flow, adjusted EPS, EBITDA and adjusted EBITDA, each of which is a non-GAAP term.

Speaking today for United Rentals is Michael Kneeland, Chief Executive Officer; William Plummer, Chief Financial Officer; and Matt Flannery, Chief Operating Officer.

I will now turn the call over to Mr. Kneeland. Mr. Kneeland, you may begin.

Executive
Unidentified Speaker

of adjusted EBITDA on a rental revenue growth that outpaced the industry growth by nearly two-to-one. And our free cash flow was a homerun for the year. This was due in part to the used equipment margin of 48.5%, another indication of the ongoing recovery.

And we set 1.7 billion on fleet and as you saw last night, our CapEx plan for 2015 is approximately the same with even higher expectations for free cash flow. Not