Neff expects revenue between 390 million and 410 million for the full year of 2016

Neff Rental Hikes Rental Revenue 7.8 Percent in Second Quarter

July 28, 2016

Rental revenues increased 7.8 percent year over year in the second quarter for Neff Rental, to $91.5 million compared to $84.8 million in the second quarter of 2015. Total revenues jumped 5.8 percent to $99.7 million.

Michael Roth

Time utilization increased to 68 percent from 67.1 percent in the same period in 2015. Rental rates decreased 1.1 percent year over year in the second quarter of 2016. The average original equipment cost of Neff’s rental fleet increased 7.1 percent to $816.7 million year over year.

Adjusted EBITDA increased 7.6 percent to $50.6 million in the second quarter compared to $47 million in the year-ago period. Adjusted EBITDA margin was 50.7 percent compared with 49.9 percent in the same period last year.

For the first six months of 2016, total revenues were $189.2 million, compared to $178.3 for the same period of 2015, a 6.1-percent increase. Rental revenues for the six months were $172.7 million compared to $159 million a year ago, an 8.6-percent leap.

Return on invested capital for the 12 months ended June 30 was 10.3 percent, a decrease of 120 basis points from the 12 months ended June 30, 2015.

“The second quarter of 2016 was another solid quarter for Neff’s rental business as we generated record second quarter results for rental revenues, which increased by 7.8 percent year over year and for adjusted EBITDA, which increased by 7.6 percent year over year,” said Graham Hood, CEO of Neff Corp. “We also delivered impressive adjusted EBITDA margins of 50.7 percent. Outside of our branches directly affected by oil and gas activities, our rental revenues were up 11.7 percent and adjusted EBITDA increased by 12.6 percent, reflecting the ongoing strength in the construction markets we serve. We expect this strength to continue for the remainder of 2016.”

Neff expects total revenue for the full year 2016 to be in the range of $390 million to $410 million, with adjusted EBITDA between $190 million to $200 million.

Based in Miami, Neff Rental is No. 12 on the RER 100.