CHARLOTTE, N.C. - Sunbelt Rentals' revenue shot up 300 percent in the fiscal first quarter ended July 31, as revenue from locations formerly owned by BET USA boosted the total. With the 60 locations formerly known as Aggregate Equipment, Ivy High-Lift and BPS Equipment on board since the acquisition was finalized June 1, the former BET stores contributed $52.1 million in revenue, giving Sunbelt $112.3 million for the quarter.
Even without the acquisition revenue, Sunbelt posted a strong increase. Revenue excluding the acquired branches rose 61 percent from $37.4 million in the same period in 1999 to $60.2 million. On a same-profit-center basis, not including Sunbelt's startups, the company enjoyed a 29 percent increase.
Overall, the Ashtead Group of companies increased revenue considerably, from $110.5 million for the same period in 1999 to $188.9 million, including the British divisions A-Plant and Ashtead Technology.
Sunbelt director of marketing Chuck Miller said the integration of the BET stores into the Sunbelt system is proceeding at an accelerated pace.
"The integration of human resources, management and [management information] systems is basically all done," Miller said. "It will take us a year to paint all the equipment green, but converting the signage and integrating in other areas are well under way."
As a result of the BET acquisition, Sunbelt will spend about $15 million in reorganization costs but expects to gain about $6 million in synergies in the first year after the acquisition. Having acquired 60 branches, Sunbelt doesn't expect to spend as much money on startups in the immediate future as it has in recent years.
Sunbelt now has 151 locations in 26 states.
