Stephenson’s Posts 23 Percent Second Quarter Revenue Jump

Stephenson’s Rental Services increased second-quarter revenues 23 percent year over year to CD $12.5 million, the company said last week. Stephenson’s said its acquisition of A1 Equipment Rentals, completed in May, plus higher rental revenue generated by a larger rental fleet and price increases implemented in 2005 and 2006 contributed to the improvement. Revenue from equipment rental represented about 79 percent of total revenue for the quarter, compared with 81 percent for the same period in 2005, while revenue from consumables and new equipment sales grew 14.5 percent compared to the year-ago period. Total revenue for the six months ended June 30 grew 16.5 percent to $22.5 million, compared with the second quarter of 2005. “We are pleased with the revenue growth during what is historically our two weakest quarters of the year,” said president and CEO Willie Swisher. “With the highly accretive A1 acquisition now completed and its operations successfully integrated, we anticipate we will generate increased distributable cash for the balance of the year.” Stephenson’s predicted that the acquisition of its largest independent competitor (A1) will result in a market share increase of close to 30 percent of markets served. Based in Mississauga, Ont., Stephenson’s Rental Services is No. 48 on the RER 100.