Neff Rental Posts 9.5-Percent Rental Revenue Hike in First Quarter
Neff Rental increased first quarter total revenues to $89.6 million, a 6.5-percent hike from the first quarter of 2015, with rental revenues jumping 9.5 percent year over year to $81.2 million compared to $74.1 million a year ago. Time utilization increased to 65.1 percent from 63.7 percent in the first quarter of 2015.
Rental rates decreased 1.3 percent year over year in the first quarter. Adjusted EBITDA increased 6.2 percent to $41.4 million in the first quarter of 2016 from $39 million in the year-ago period. Parts and service revenue increased slightly from $3.2 million in the first quarter of 2015 to $3.3 million in the recently concluded frame.
“We achieved record first quarter rental revenues which increased by 9.5 percent year over year, despite the ongoing headwinds from oil and gas activities,” said Graham Hood, Neff Corp. CEO. “Adjusted EBITDA increased by 6.2 percent year over year and we delivered impressive adjusted EBITDA margin of 46.2 percent for the quarter. Outside of our branches directly affected by oil and gas activities, our rental revenues were up 17.5 percent and adjusted EBITDA increased by 17.6 percent, reflecting the ongoing strength in the construction markets we serve. We expect this strength to continue for the remainder of 2016.”
The size of the rental fleet was $796.3 million of OEC as of March 31, 2016, compared to $740.8 million on March 31, 2015.
The company reaffirmed its 2016 full year outlook, expecting total revenue in the range of $390 million to $410 million and adjusted EBITDA in the range of $190 million to $200 million. The company expects rental rate increase of between 0 and 2 percent. Neff expects net capital expenditures in the range of $100 million to $110 million.
Neff Corp. is based in Miami.
