Essex Crane Rental Corp. posted a 28.7 percent second quarter revenue increase, with $20.2 million in revenue compared with $15.7 million for the second quarter of 2007. Hyde Park Acquisition Corp. acquired the Buffalo Grove, Ill.-based Essex March 6.
The increase in revenue was driven primarily by a 34.6 percent increase in crane rental revenue, Hyde Park management said, posting $15.8 million in the second quarter compared with $11.7 million in the same period in 2007. The revenue increase was generated by increases in utilization rates for Essex’s fleet as well as jumps in rental rates. A portion of the increase in rental and utilization rates is attributable to Essex’s $26.5 million investment in new heavier lift cranes during the past 12 months to replace older cranes with lighter lift capacity. The heavier lift cranes generate higher utilization and rental rates, the company said.
“As evidenced by Essex’s continue strong operating results and backlog as of June 30, 2008, the company has sufficient bookings in hand to support its full year 2008 rental revenue projections,” said Laurence Levy, chairman and CEO of Hyde Park. “Based on the pace of new contract-related activity, the addition of new equipment to the fleet, and the continued strength of Essex’s end markets, we believe that the company is likely to exceed its previously projected 2008 total EBITDA of $40.2 million. This is primarily attributable to as much as an 8 percent increase in predicted full year rental EBITDA.”
Rental revenue backlog rose 34.4 percent to $43.4 million at the end of the quarter, compared to $32.3 million at the end of last year’s second quarter. Essex management believes the improvement is the result of continued strength in its infrastructure-related end markets. The company said quoting activity continues strong with significant levels of inquiry coming from power-related construction, wind-power generation, refinery and petrochemical facility upgrades, offshore drilling-related activities and new bridge construction.
For the first half of 2008, Essex’s total revenues, including revenue from rentals, repair and maintenance and transportation services jumped 23.8 percent to $37.4 million compared to $30.2 million in the first half of 2007, driven by a 32.1 percent increase in rental revenue to $29.7 million from $22.5 million for the same period in 2007.
Essex Crane Rental is No. 32 on the RER 100.