FORT LAUDERDALE, Fla. — NationsRent enjoyed a 20.5-percent increase in total revenue in the second quarter, increasing year over year from $144.1 million in 2004 to $173.7 million for the three-month period ended June 30, 2005. Rental revenue increased 5.9 percent year over year from $116.5 million in Q204 to $123.4 million this year.
The largest increase was a spectacular 104.3-percent jump in sales of rental equipment from $15.9 million to $31 million year over year. Sales of new equipment and sales of merchandise, service, parts and supplies registered respective climbs of 92 percent and 15 percent.
For the first six months of the year, total revenue rose 18.9 percent, from $264.2 million last year to $314.2 million in 2005. Equipment rental revenue increased 6.8 percent year over year from $209.5 million to $223.9 million. Sales of rental equipment and sales of new equipment rose 76.4 percent and 79.5 percent respectively, in keeping with NationsRent's change from a rental-only business model to a complete service rental, sales and service culture.
Net income for the quarter increased year over year from $1.2 million to $5.2 million.
“The growth was driven by an improved industry environment and our key initiatives,” the company said in documents filed with the SEC. “Non-rental revenue accounted for the majority of the overall revenue growth as higher volume and better pricing drove increases in new and used equipment sales. The higher volume of sales was largely the result of continuing to reemphasize sales of equipment through training, targeted incentive compensation programs and increasing inventories of equipment held for sale.
“Rental revenue grew in the first six months of 2005 as compared to the same period in 2004 partly as a result of the increase in the average first cost of our rental fleet, which is the purchase price paid for the equipment, and partly due to increased utilization of our rental fleet.”
Utilization for the second quarter of 2005 was 50.5 percent, compared to 49.8 percent for the same period of 2004.
NationsRent said in its SEC filing that it plans rental equipment expenditures over the next 12 months of between $90 million and $115 million, and estimates capital expenditures for non-rental assets to range between $15 million and $25 million for delivery vehicles, information systems and store improvements. The company said it is primarily focused on internal growth, but may explore additional store openings and strategic acquisitions at favorable prices.
Based in Fort Lauderdale, Fla., NationsRent is No. 6 on the RER 100.
