United Rentals, Inc. (NYSE:URI) Q2 2019 Earnings Conference Call - Final Transcript
Jul 18, 2019 • 11:00 am ET
Certainly. [Operator Instructions] Our first question comes from the line of David Raso from Evercore ISI. Your question please.
Hi, good morning. Given the quarter at the end appear to be a little lighter than you thought, be it the integration and/or weather, can you give us some feel how the quarter starting -- the amount that you tweaked the EBITDA down doesn't seem to be extrapolating much of the second quarter disappointment into the back half? So can you just -- maybe just update us on what you're seeing and also obviously the ramifications of the capex coming down as well on how you're reviewing your metrics the rest of the year?
Matthew J. Flannery
David, this is Matt. How're you doing? As you know, we don't give inter-quarter guidance, and even though it may be in our favor at sometimes, we still try to keep that. All I will say is, we're very thoughtful and confident about the guidance that we gave here. And here we are a couple weeks into the quarter. So you can extrapolate from that what you think. We, more importantly, the disruption that we did see primarily not getting the build we expected at the end of the quarter in June, we've identified the opportunities to remediate that, to repair that and the change in guidance, as Jess have said, is really a reflection of where we're starting the second half, with the OEC on rent as opposed to any kind of change in the way that we're viewing the back half of the year. And hopefully that answers your question.
Well, that's -- I'm just trying to gain comfort with, if the guidance reduction is sort of second quarter related, like sort of what happened during 2Q, but not much changed how you think of the rest of the year. What are the actions to make us comfortable with that? Is that because some projects that were clearly pushed from 2Q are now showing up in 3Q or simply the impact of the reduced fleet that you were going to bring to different territories? Just to put more color on why we think this is a second quarter isolated, just the $25 million EBITDA hit at the midpoint?
Matthew J. Flannery
Sure. There is a couple of things that we've done. So first off, in the markets that were impacted and we talked a little bit, we took a look at the data and we realized that there was about a third of our markets that had multiple integrations they've been working through for the last couple of years. And what that means to us is a lot of internal focus, where you're realigning territories, merging branches, making sure you're protecting the revenue that you acquired, which the team has done a great job for.
You're a little less externally focused on driving new opportunities, new revenue. So we repaired that in those markets where that was an issue. We've fed the specialty team who continues to show robust