EXHIBIT 12(a)

 

 

UNITED RENTALS, INC.

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

    Year Ended December 31
     Three Months Ended
March 31,
  
    1998
   1999
   2000
   2001
   2002(2)
     2002
   2003(3)
  
    (dollars in thousands)  

Earnings:

                                      

Income before provision for income taxes and extraordinary items

   $ 78,297   $ 241,807   $ 301,496   $214,550   $(101,384 )   $12,432   $(14,300 )

Interest expense

     64,157     139,828     228,779   221,563   195,961     49,983   50,975  

Amortization of debt issuance costs

     1,423     4,154     6,880   9,468   10,080     2,462   2,907  

Interest portion of rent expense (1)

     6,834     21,833     45,224   55,739   61,742     14,090   15,098  
   
 
 
 
 
 
 

Earnings as adjusted

   $ 150,711   $ 407,622   $ 582,379   $501,320   $166,399     $78,967   $54,680  
   
 
 
 
 
 
 

Fixed charges:

                                      

Interest expense

   $ 64,157   $ 139,828   $ 228,779   $221,563   $195,961     $49,983   $50,975  

Amortization of debt issuance costs

     1,423     4,154     6,880   9,468   10,080     2,462   2,907  

Interest portion of rent expense (1)

     6,834     21,833     45,224   55,739   61,742     14,090   15,098  
   
 
 
 
 
 
 

Fixed charges

   $ 72,414   $ 165,815   $ 280,883   $286,770   $267,783     $66,535   $68,980  
   
 
 
 
 
 
 

Ratio of earnings to fixed charges

     2.1x     2.5x     2.1x   1.7x   0.6x     1.2x   0.8x  

 

 

(1) The interest portion of rent expense is estimated to be one-third of rent expense.
(2) The ratio for the year 2002 was less than 1x. The amount of the deficiency was approximately $101.4 million.
(3) The ratio for the first three months of 2003 was less than 1x. The amount of the deficiency was approximately $14.3 million.