Scottsdale, Ariz.-based Rental Service Corp., grossed about $400,000 in revenue for the third quarter, according to parent company Atlas Copco’s third-quarter report released recently. The total is up from last year’s third-quarter revenue of about $393,400, based on current exchange rates. The 2-percent increase is affected by a negative currency translation effect of 8 percent. With rental revenue accounting for about 76 percent of the division’s revenues, RSC grossed about $304,000 in rental revenue for the quarter.
According to the Atlas Copco quarterly report, rental revenue for the quarter increased 11 percent year over year, with an increase in rental rates of 7 percent and increased volume of 4 percent. Same store rental revenue increased 13 percent and the total number of stores was 475, down from 491 at the end of last year’s third quarter. Sales of used equipment, representing 12 percent of total revenues, increased 20 percent in U.S. dollars. Sales of merchandise, spare parts and new equipment, accounting for the remaining 12 percent of total revenue, were down 4 percent in U.S. dollars.
In line with the company’s strategy to focus the organization on rental operations, a letter of intent to divest the non-core IAT distributor business in Texas, which services the petrochemical industry with tools and supplies, has been signed.
Operating profit was a margin of 19.2 percent, up from 10.2 percent in last year’s third quarter, an improvement based on revenues, improved efficiencies and reduced costs. Operating costs, including benefits and insurance costs, decreased as a result of ongoing cost-containment efforts.
Return on capital employed for the past 12 months was 8 percent, up from 4 percent in Q303, while the return on operating capital, excluding goodwill, increased to 16 percent, up from 9 percent for the same period last year.
Fleet utilization improved in the quarter to an average of 70 percent, a company record. Investments in the fleet increased compared to the previous year, reflecting recent rental volume growth and high utilization. Average fleet age at end of quarter was 3.4 years.
RSC is No. 2 on the RER 100.
