Third quarter total revenue jumped 31 percent for Ahern Rentals, from $55.1 million in the third quarter of 2005 to 72.1 percent this year, with rental revenue climbing from $49.5 million to $64.8 million, a 30.9 percent hike. For the first nine months of 2006, revenue increased 31.1 percent year over year from $145.6 million to $191 million, while rental revenue for the nine-month period climbed 33.7 percent from $127.7 million to $170.7 million.
Net income for the Las Vegas-based rental company went from a $3-million loss in the third quarter of 2005 to an $8.5-million profit in this year’s third quarter, while net income for the first nine months of 2006 was $18.7 million, compared with a $1.2-million loss in the first nine months of 2005. EBITDA for this year’s third quarter was $32.3 million, up 41.1 percent from $22.9 million for the same period in 2005, while EBITDA for the first nine months of the year climbed from $54.5 million to $84 million, a 54 percent leap.
Ahern reported that 68 percent of the company’s rental revenue came from high-reach equipment, with 20 percent from general equipment rental, with 12 percent from related activities such as fees for equipment delivery, damage waivers, repair of rental equipment and fuel.
The company said increased revenues were the result of an increase in the number of units available for rent as a result of capital expenditures that increased the original cost of its rental fleet to $494 million in 2006 from $362 million in 2005, offset slightly by a decrease in average dollar utilization from 54 percent in 2005 to 53 percent in 2006. Average rental rates increased 2 percent, while average time utilization of high-reach equipment decreased from 78 percent in 2005 to 76 percent this year.
Sales of rental equipment increased 43 percent year over year because of the strong retail and secondary market demand for rental equipment, the company said. Other 2006 revenues increased 22 percent because of increases in sales of parts and merchandise.
In other recent developments, Ahern Rentals opened a branch in Albuquerque, N.M., giving the company 34 locations.
Ahern Rentals is No. 12 on the RER 100.