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 company’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.
“This represents our 16th consecutive quarter of rental revenue growth,” said Erik Olsson, president and CEO of RSC. “We 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.”
Through the end of the quarter — June 30 — 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 year’s second quarter.
Olsson added that RSC’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.
