Revenue grew 22.1% to $2.12 billion helped by strong volume growth and improvements in rental rates. Rental revenues climbed 23% to $1.8 billion. The company realized broad-based growth across its geographic markets and vertical end-markets on both an actual and pro forma basis.
Looking ahead into fiscal 2019, the company reaffirmed its total revenue guidance in the range of $9.15 billion to $9.55 billion and adjusted EBITDA outlook in the range of $4.35 billion to $4.55 billion. Net cash provided by operating activities are still predicted to be in the range of $2.85 billion to $3.2 billion and free cash flow, excluding merger-related charges, is projected to be in the $1.3 billion to $1.5 billion range.
For the first quarter, fleet productivity within rental revenue decreased by 1.3% year-over-year, primarily due to the impact of the BakerCorp and BlueLine acquisitions. Rental revenue for the company’s specialty segment, Trench, Power, and Fluid Solutions, increased by 44.2% year-over-year, including a 9.5% increase on a same-store basis.
The company generated $192 million of proceeds from used equipment sales at a GAAP gross margin of 34.9%. This compared with $181 million at a GAAP gross margin of 40.9% for the same period last year. The decline in gross margin was primarily due to lower-margin sales of fleet acquired with BlueLine.
During the first quarter, the company reduced net debt by $150 million relative to year-end 2018 levels, repurchased $210 million of common stock and lowered its average diluted share count by 6.1% year-over-year. As of March 31, 2019, the company has repurchased $630 million of common stock under its current $1.25 billion repurchase program.
Shares of United Rentals ended Wednesday’s regular session down 0.23% at $125.76 on the NYSE. Following the earnings release, the stock inched up over 6% in the after-market session.