Rental revenues dropped 19.5 percent for Ahern Rentals in the first quarter, the company said last week. Ahern Rentals posted rental volume of $63.2 million for the first quarter compared with $78.5 million for the same period in 2008. Total revenue declined 24.5 percent to $70.6 million compared with $93.5 million for the first quarter of 2008. Gross profit for the quarter was $11.9 million, compared with $28.7 million for the year-ago period, a 58.5-percent plunge.
Same-branch revenues decreased 23 percent or $18 million. The decrease was partially offset by a $3 million increase in revenues from 10 new branches opened after the first quarter of 2008. Average dollar utilization decreased to 31 percent in the first quarter of 2009 compared with 42 percent in 2008, the decrease, caused mostly by a 14-percent drop in average rental rates and a decrease in average time utilization of high-reach equipment to 56 percent for the first quarter, compared with 67 percent for the same period a year ago.
Continuing its efforts to put under-utilized fleet into new markets and expand its national footprint, Ahern Rentals last month opened new branches in Raleigh, N.C.; Atlanta; and Lubbock, Texas.
Sales of rental equipment declined 54 percent year over year in the first quarter, with about 40-percent fewer units sold in this yearâ€™s first quarter. Sales of new equipment and other revenues in 2009 decreased 49 percent in 2008. EBITDA for the first quarter was $21.2 million, for a 30 percent margin, compared to $37.2 million for the year-ago quarter, a margin of 40 percent.
Based in Las Vegas, Ahern Rentals is No. 7 on the new RER 100.