Las Vegas-based Ahern Rentals continued strong operating results with $91.6 million in volume in the third quarter of 2007 ended September 30, up 27 percent year over year compared with $72.1 million for the third quarter of 2006. Rental volume increased 20.9 percent year over year from $64.8 million in last year’s third quarter to $78.4 million this year.
Same-store revenues increased 12 percent, or $7.8 million in the third quarter, year over year. The remaining $5.9 million increase comes from new branches in 2007 that were not open in 2006. Gross profit jumped 13.7 percent from $27.8 million in Q306 to $31.6 million this year. Net income dropped from $8.5 million in last year’s third quarter to $6.4 million this year, largely because of interest expense, which increased 33 percent year over year.
For the first nine months of 2007, total volume was $245 million, up 28 percent from $191 million for the same period last year. Rental volume jumped 24 percent from $170.7 million to $212 million. Investment in property and equipment increased year over year from $149.2 million last year to $178.7 million this year, accounting for a drop in net income from $18.7 million to $13.3 million. Interest expense in 2007 increased $8 million or 36 percent, as a result of a modest increase in average interest rates and higher average debt balances to fund the growth in Ahern’s fleet of rental and non-rental equipment.
The average original cost of the company’s rental fleet increased to $650 million in 2007 from $494 million in 2006, offset by a decrease in average dollar utilization to 48 percent in 2007 from 53 percent in 2006. Average rental rates increased 5 percent in the third quarter compared with the same period last year, but average time utilization of Ahern’s high-reach equipment dropped from 76 percent in 2006 to 72 percent this year.
Increased revenues resulted from an increase in the number of units available for rent as a result of capital expenditures, the company said. For the nine-month period, average rental rates increased 3 percent, but average time utilization of high-reach equipment decreased to 70 percent in 2007, compared to 73 percent in 2006.
EBITDA for the third quarter increased from $32.2 million in 2006, a 44.7 percent EBITDA margin, to $37.9 million in 2007, a 41.4 percent EBITDA margin. For the first nine months of 2007, EBITDA was $102 million, a 41.6 percent EBITDA margin, compared with $84 million for the same period last year, a 44 percent EBITDA margin.
Ahern Rentals now has 43 branches and is No. 11 on the RER 100.