Noble Iron posted $5.2 million for the second quarter, compared to $5.6 million a year ago, a 7.1 percent decline. For the first six months of 2014, however, the company increased revenue from $10.1 a year ago to $10.4 million, a 3-percent gain. However, rental revenue increased by $400,000 or 12 percent during the second quarter and by $1.1 million or 17 percent for the first six months of the year.
The increase in rental revenue was driven by increased fleet, sales and marketing initiatives and fleet diversification.
Construction and industrial equipment rental and distribution segment revenues were $4.1 million for the second quarter, the same as the second quarter a year ago. For the first six months of 2014, segment revenues totaled $8.2 million, compared with $7.5 million for the year-ago period, a 9.3-percent jump.
Software segment revenues were $1.1 million for the quarter, compared to $1.5 million last year, a 2.7-percent drop. For the six month period, software revenues declined from $2.5 million last year to $2.2 million this year, a 12-percent skid. The year-over-year total revenue difference was also largely attributed to a significant one-time software license sale, totaling $500,000, to a single large customer that occurred during last year’s second quarter. Recurring revenues within the software segment increased 12 percent year over year for the six months.
The second quarter declines was primarily the result of less ancillary revenue from equipment disposal, which decreased by $400,000 or 58 percent year over year. The company expects to dispose of and replenish a larger volume of equipment fleet during the second half of the year because of repair and refurbishment initiatives that are underway.
Noble Iron’s equipment rental and dealership business operates under the name Noble Iron and serves customers in California and Texas. The company is the exclusive distributor of LiuGong Construction Machinery equipment in Southeast Texas. Noble Iron’s software division is known as Texada Software.
The company is headquartered in Houston.