RSC Holdings last week announced second-quarter rental revenue growth of 13.1 percent, along with adjusted EBITDA margin increases of 46.6 percent, and a record utilization rate of 73.9 percent.
Total revenues for the quarter were $442.8 million, with net income of $17.4 million or $0.18 per diluted share. Excluding fees related to the termination of the monitoring agreement and debt prepayment costs in connection with the recent initial public offering, net income would have been $35.5 million, or $0.36 per diluted share.
Rental revenues, which made up 87 percent of total revenues, grew 13.1 percent to $384.6 million in the second quarter, compared to $340.1 million in the same period last year. Same-store rental revenue growth was 10.9 percent in the quarter, during which RSC added eight new locations. Sales of used equipment decreased $12.4 million and sales of merchandise decreased $3.1 million in the second quarter, drops that were in line with the companyâ€™s strategic direction, officials said.
Adjusted EBITDA increased to $206.3 million in the second quarter compared to $182.9 million in the same period last year, a 12.8-percent increase.
â€śThis represents our 16th consecutive quarter of rental revenue growth,â€ť said Erik Olsson, president and CEO of RSC. â€śWe are executing our strategy of emphasizing our core rental operations through customer service, same-store growth and investment in local markets, and have further strengthened our market position with year-to-date additions of 12 locations and 55 sales people.â€ť
Through the end of the quarter â€” June 30 â€” RSC reduced total debt by $270 million to $2.74 billion. Free cash flow for the second quarter was $32.5 million compared to $6.4 million in the prior period. Total revenues for Q2 grew 7 percent from $413.8 million a year ago to $442.8 million in this yearâ€™s second quarter.
Olsson added that RSCâ€™s fleet value has grown to $2.5 billion.
The company said near-term demand from the non-residential and industrial sectors is expected to continue at high levels. RSC anticipates full-year 2008 results for total revenues to be between $1.78 billion and $1.81 billion, net income per diluted share of $1.18 to $1.32 and adjusted EBITDA of $810 million to $830 million.
No. 3 on the RER 100, Scottsdale, Ariz.-based RSC has 465 branches in 39 U.S. states and four Canadian provinces.