RER Magazine

SUBSCRIBE NOW!

Newsletters

SUBSCRIBE NOW!

 

Blog

Newsletters

Stay up-to-date on the latest marketing intelligence and opportunities.

RER Reports RER ProductWire
Subscribe

Issue Archive

Event Calendar

The Rental Show– New Orleans, LA
February 6-8, 2012

» More events and information

Social Media

More ways to stay informed...

  

follow us on twitter

Find us on Facebook


RSC Posts Greater Than 20-Percent Hikes in Q4, Full-Year Revenues

RSC Holdings posted $421 million in fourth-quarter total revenue, compared with $339 million for the same period in 2010, a 24.2-percent hike, with rental revenue leaping 26.8 percent from $287 million in the fourth quarter of 2010 to $364 in the recently concluded quarter. The company’s fourth-quarter net income was $5 million, or 4 cents per diluted share, compared with a net loss of $7 million or 7 cents per diluted share for the fourth quarter of 2010.

The net income in the current quarter includes $11 million of pre-tax charges associated with the company’s announcement on Dec. 16 of a potential merger (acquisition by United Rentals). Excluding these charges, net income for the fourth quarter would have been $15 million or 14 cents per diluted share.

Adjusted EBITDA was $164 million for the first quarter, compared with $116 million for the same period last year. Adjusted EBITDA margin was 38.9-percent for the fourth quarter, compared with 34.4 percent in 2010. The increase in profitability and margins is the result, primarily, of continued volume growth, pricing growth and the company’s ability to leverage and control its operating costs.

Rental rates improved 6.5 percent compared with the fourth quarter of last year and 4.5-percent compared with the third quarter of 2011. Adjusted EBITDA grew 41 percent year over year. Average fleet utilization was 71 percent for the quarter, and the company invested $73 million in gross rental capital expenditures in response to growing demand.

Total revenue for 2011 was $1.52 billion, compared with $1.23 billion in 2010, a 23.3-percent hike. Rental revenue for 2011 jumped 23.8 percent, from $1.06 billion in 2010 to $1.312 billion in 2011.

Rental rates increased 4.9 percent for the full year and average fleet utilization increased to 69 percent.

"The fourth quarter was another very strong quarter,” said Erik Olsson, RSC’s president and CEO. “Our business strategy and industry-leading execution produced an impressive 21-percent volume growth, while at the same time generating positive year-over-year pricing of 6.5 percent, driven by positive sequential pricing over the third quarter of 4.5 percent. This growth, in combination with strong cost management, resulted in a 41-percent year-over-year increase in adjusted EBITDA. Furthermore, improved results were widespread with all regions delivering double-digit revenue growth and significant increases in utilization and profitability. I am very pleased with this strong finish to a great 2011, which supports our view of a strong 2012."

Based in Scottsdale, Ariz., RSC Rentals is No. 2 on the RER 100.

Want to use this article? Click here for options!
© 2012 Penton Media Inc.


Acceptable Use Policy
blog comments powered by Disqus

most recent story

popular articles

Popular Articles

Recent Comments

Stock Block

Buyers Guide

Buyers Guide

The RER Industry Directory is the resource buyers like yourself rely on when looking for up-to-date information on the products or services you are searching for.

Learn More
Sourcebook

Rental Rate Guide

Rental Rate Guide 2012

Want to know how much equipment is renting for these days? Find out in RER's original 2012 Rental Equipment Rate Guide.

Learn MoreAdd to Shopping Cart
Sourcebook