Essex Crane Rental Corp. posted a 28 percent third-quarter rental volume jump from $12.7 million in last year’s third quarter to $16.3 million this year. Rental EBITDA for the third quarter of 2008 leapt 40.9 percent to $12 million, excluding a one-time charge of $350,000 associated with the sale of the business to Hyde Park, compared with $8.5 million in last year’s third quarter.
Essex management reaffirmed its full-year 2008 rental EBITDA guidance of about $41.1 million, an increase of 12.6 percent from its initial guidance of $36.5 million.
Essex’s total rental-related revenue for the third quarter, including revenue from rentals, repair and maintenance, and transportation services but excluding equipment sales, rose 20.5 percent to $20.2 million, compared with $16.7 million for last year’s third quarter. The company said increases in average monthly rental rates was a major contributor to the increase, as was a $22.4 million investment in new heavier lift cranes during the past 12 months to replace older cranes with lighter lift capacity. The average monthly crane rental rate increased 34.4 percent to $22,258 for the quarter, compared with $16,563 for the year-ago quarter.
The company continues to see strength in its infrastructure-related end markets and its market position, with strong quoting activity and significant levels of inquiry coming from a diverse group of customer segments, including power-related construction, wind-power generation, refinery and petrochemical facility upgrades, offshore drilling-related activities and new bridge construction.
For the nine months ended Sept. 30, Essex Crane’s total revenues, excluding used equipment sales, jumped 22.6 percent to $57.5 million compared with $46.9 million for the same period in 2007. Rental revenue jumped 30.6 percent to $46 million, compared with $35.2 million for the same period in 2007.
For the nine months, rental utilization ratio, or the total number of crane rental days, equaled 72.3 percent of total available days, up from 71 percent in the same period last year.
“We are very excited to be a publicly traded company and are also looking forward to completing our listing on the NASDAQ Capital Market, which we expect to take place over the next few weeks,” said Ron Schad, president and CEO. “The results for Essex Crane through the first nine months of 2008 reflect the continued strength of our end markets, the validity of our strategy to populate our fleet with higher lifting capacity equipment, which has historically produced higher monthly average rental rates and higher utilization rates, and the sustainability of our business model. As we approach the end of the year, demand from our primary end markets and contract-related activity remain robust. We are encouraged by the increased national discussion about a federal fiscal stimulus program focused on infrastructure spending to address the country’s current economic challenges. Such a program would create even demand for Essex’s rental fleet.”
Based in Buffalo Grove, Ill., Essex Crane Rental Corp. is No. 32 on the RER 100.
