United Leases: 2020 capex will probably be “down considerably” as a result of coronavirus
United Leases, on monitor to publish as-expected 1Q outcomes, as a substitute noticed its rental revenues lower zero.7 p.c in contrast with the identical quarter final yr as the results of coronavirus impacts beginning in mid-March. As with nearly all different firms, UR has withdrawn its 2020 steerage.
UR expects its 2020 capital expenditures will probably be down considerably year-over-year and that it “continues to leverage its present capability to scale back the necessity for third-party supply and restore companies.” UR’s fleet productiveness decreased 1.2 p.c year-over-year as rental quantity declined in response to shelter-in place and different restrictions.
“Whereas we’ve withdrawn our steerage at the moment,” says Matthew Flannery, CEO, “we’re assured in our means to leverage the residency inherent in our enterprise mannequin. We’re within the strongest place in our historical past to reply to this disaster and to organize for the restoration to come back. This consists of the energy of our stability sheet and money circulate, as we stay targeted on disciplined capital allocation and price administration. We count on our free money circulate to stay considerably optimistic in 2020, even in our worst-case eventualities.”
The corporate’s normal leases phase had a 2 p.c year-over-year lower in rental income. Its trench, energy and fluid options specialty phase elevated rental revenues 4.6 p.c year-over-year.
UR says it has elevated disinfecting gear and services and that each one branches within the U.S. and Canada stay open.