Neff Corp. increased its total revenues in the second quarter to $104.1 million, compared to $99.7 million in the same period a year ago, a 4.5-percent increase. Rental revenues jumped 3.2 percent year over year to $94.4 million compared to $91.5 million in the year-ago frame.
Rental rates hiked 1.5-percent year over year in the second quarter. Time utilization decreased to 66.6 percent compared to 68 percent a year ago.
“The second quarter of 2017 was another very good quarter for Neff’s rental business as we generated record second quarter results for rental revenues and EBITDA, increasing by 3.2 percent and 3.8 percent year over year, respectively,” said Graham Hood, Neff CEO. “This performance reflects our ability to execute our strategy and take advantage of the ongoing strength in the construction markets we serve. This also provides confirmation to our belief that the cycle remains strong and intact. We expect this strength to continue for the remainder of 2017.”
Also in the quarter, Neff announced an agreement to be acquired by Baton Rouge, La.-based H&E Equipment Services. “As previously announced, we look forward to joining H&E Equipment Services, an industry leader who shares our core values, including our commitment to providing customers with best-in-class equipment services and solutions,” added Hood. “Neff offers H&E a talented, experienced and knowledgeable employee base that will be even better positioned to serve customers as a part of a company that combined has a broader geographic footprint and enhanced capabilities in strategic markets.”
The size of Neff’s rental fleet was $867.1 million of original equipment cost as of June 30, compared to $826.5 million on June 30, 2016.
Neff has reaffirmed its 2017 full year outlook of total revenue in the range of $400 million to $420 million; adjusted EBITDA in the range of $195 million to $205 million; year-over-year rental rate change to be between flat and 1 percent up; time utilization of approximately 67 percent. Neff expects net capital expenditures in the range of $85 million to $90 million.
Based in Miami, Neff Rental is No. 10 on the RER 100.
