The operator welcomes listeners to the United Rentals Investor Conference call and reminds them that the call is being recorded. He also mentions that the company's press release and comments may contain forward-looking statements and that the company's business is subject to risks and uncertainties. He directs listeners to the company's website for more information and notes that the company has no obligation to update forward-looking statements. He also mentions that the call will feature Matt Flannery, President and CEO, and Ted Grace, CFO, and that they will discuss the company's strong start to 2024.

In the second paragraph, the speaker discusses the company's success in growth, margins, and fleet productivity, which they attribute to their focus on putting the customer first and prioritizing safety. They have expanded their product offerings and invested in technology to improve the customer experience. The company is also executing their plan to open more locations while maintaining operational efficiency. In the first quarter, they saw a 6% increase in total revenue, with rental revenue growing by 7%. Customer activity has also shown growth in both general rental and specialty businesses, with double-digit growth in all lines of business. The construction and industrial sectors have been particularly strong.

The company has seen continued growth in various sectors such as power generation, data centers, automotive, and infrastructure. The used market has also remained strong, allowing the company to sell a record amount of OEC and spend $595 million on rental CapEx. This has resulted in strong free cash flow and showcases the company's ability to generate cash flow while funding growth. The company's top priority is supporting growth and maintaining a strong balance sheet, and after funding organic growth and completing the Yak acquisition, they returned $485 million to shareholders. The Yak acquisition aligns with the company's M&A strategy and adds more capabilities to their one-stop shop platform, allowing them to be more responsive to customers and generate attractive returns.

The company is optimistic about growth opportunities for the rest of the year, with the addition of Yak and strong customer confidence. The team's daily actions, such as their response to the Key Bridge collapse, further support their belief in delivering strong shareholder value. The acquisition of Yak allowed them to provide necessary equipment for the site. This showcases their differentiated business model and strong culture. Overall, the company is excited about both immediate and long-term opportunities.

The company has a strong strategy in place that has led to profitable growth and increased shareholder value. The first quarter of the year has seen record numbers in revenue, EBITDA, and EPS, and the company remains focused on allocating capital for further growth and returning excess cash to shareholders. The rental revenue has increased, driven by market-tail wins and a strong position in key verticals. The use results are consistent with expectations and reflect the normalization of the market after supply chain issues in 2022.

In the first quarter, the company saw strong results in terms of OEC recovery, adjusted EBITDA, and adjusted earnings per share. However, used sales and SG&A were slight headwinds, while other non-rental lines of business were a tailwind. The company's adjusted EBITDA margin was 45.5%, with a flow-through of 42%. Excluding used, core EBITDA margins increased and the flow-through was 54%. The company also had a strong start in terms of ROIC and free cash flow, with a net-leverage ratio of 1.7 times and total liquidity of $3.6 billion. There are no long-term note maturities until 2027 and a manageable distribution of maturities thereafter through 2034.

In the last quarter, the company issued $1.1 billion in senior unsecured notes to fund an acquisition, which was well received by the market. This also marked the lowest spread to treasuries in the company's history, indicating the market's confidence in their growth, execution, capital allocation, and balance sheet management. The company has raised its full-year guidance to include the impact of the acquisition, with expected revenue and adjusted EBITDA growth. The company plans to return over $1.9 billion to shareholders this year, representing a return of capital yield of approximately 4.5%. The call was then opened for Q&A.

During a conference call, an operator introduces Steven Fisher from UBS who asks a question about the company's CapEx. Fisher notes that it was at the low end of the target range for the quarter and asks if there were any factors contributing to this. Matthew Flannery, the company's representative, explains that the CapEx was in line with their original guidance and that they expect it to increase in the following quarters. He also mentions that they have upped their guidance due to the addition of Yak revenue and CapEx needs. Fisher then asks about the company's vertical and Flannery reaffirms their guidance and mentions the addition of Yak as well.

The speaker is asked about the company's focus on power generation and if there are any changes in their pipeline for 2024 compared to 2023. They mention that this has been a focus for the company since 2016 and it makes up 10% of their business. They are seeing growth opportunities in traditional and alternative power, as well as in data centers and electrification, and they believe this will continue beyond 2024. There is no set target or plan for M&A as the company does not want to feel pressured to make deals.

The company has a robust pipeline and is constantly looking for opportunities to add new products to their network. They are particularly interested in deals like the recently executed Yak deal, where they can significantly grow the product and become a better owner. They do not have any immediate plans or budgeted numbers, but they are actively working on finding the right partner that meets their strategic criteria and financial goals. As for Yak access, the company is confident in its returns and sees potential for growth, including the possibility of lengthening the asset's life. They compare this deal to their successful integration of a mobile storage company in the past.

The speaker discusses the attractiveness of a recent deal and the potential for high returns. They mention opportunities for improvement and compare the deal to others in their portfolio. They also address the potential for expansion into new categories in the future.

The company sees any product that is not part of their fixed plant as an opportunity to serve their customers. They have expanded their product line in existing businesses, such as power, HVAC, chillers, spot coolers, flooring, and pickup trucks. They have also set goals to double their mobile storage and mats businesses, and have seen success in their ROS business. They believe there is still a lot of white space for growth in these verticals and plan to continue expanding their offerings to solve problems for their customers.

The speaker asks a follow-up question about the company's regional performance and the impact of weather on the quarter. The company's CEO responds by stating that they have not had to discuss weather in a while and that their business's diversification has helped them avoid any significant impact. The next question is about fleet productivity, which the company's CFO responds to by saying it played out as expected.

In January, the company forecasted positive fleet productivity for each quarter of the year. They hope to replicate their time utilization from 2023 in 2024. The rate environment is expected to remain constructive and discipline in the industry will help overcome inflationary issues. The Yak acquisition had a small positive impact in the first quarter and will continue to do so throughout the year. On the equipment rental side, there was a slower growth compared to the specialty business, which has a greater opportunity for growth and cross-selling.

The speaker, Matthew Flannery, is discussing United Rental's first quarter earnings call. He mentions the double digit growth in all specialty product lines and the expected increase in disbursement on the gen rent side. The company strategically placed their fleet in areas with the most opportunity, leading to good fleet productivity. Flannery thanks the participants and reminds them to check the Q1 Investor deck on the company's website for updates. He also mentions that Elizabeth is available for any further questions. The call ends with Flannery urging everyone to stay safe and the operator ending the call.

This summary was generated with AI and may contain some inaccuracies.