Rental Volume and EBITDA Improve for Essex Crane Rental in Q3
Essex Crane Rental Corp. raised rental volume 3.1 percent in the third quarter, while total revenue declined 18.6 percent to $29.6 million compared to $24.1 million in the third quarter of 2014. The Essex Crane equipment rental segment revenues were $9.5 million for the quarter compared to $11.4 million for Q314, a 16.7-percent plunge, while the Coast Crane equipment rentals segment revenues were $9.6 million for the quarter compared to $10.3 million a year ago, a 6.7-percent slide.
The Essex Crane segment’s decrease was primarily driven by a $1.3 million decrease in used rental equipment sales and a $400,000 decrease in transportation revenue, the company said. The Coast Crane segment slid $1.4 million in used rental equipment sales, partially offset by a $600,000 hike in equipment rental revenue and a $100,000 increase in transportation revenue.
Hydraulic crawler crane utilization remained strong at 79.2 percent for the three-month period ended Sept. 30 the company said, compared to 79.6 percent for the year-ago quarter. City and other tower crane utilization increased to 82.3 percent for the quarter compared to 52.7 percent a year ago. Rental revenue generated from tower cranes continued its positive trend and was at its highest quarterly level since the company acquired those assets.
“Despite a challenging equipment sales market, the company generated its highest adjusted EBITDA excluding non-cash compensation and non-recurring costs since the acquisition of Coast Crane in late 2010,” said Nick Matthews, president and CEO of Essex said. “The strategic initiatives put in place last year continue to benefit the company and it is encouraging to see the early results of the cost savings initiatives that were implemented during the third quarter of 2015. We anticipate the full impact of these initiatives will become more apparent as we move forward. As our core business continues to improve and become more efficient, the restructuring of the Essex Crane subsidiary is progressing.”
Essex Crane Rental Corp. is based in Buffalo Grove, Ill.
