Ahern Rentals posted a 23.8-percent rental volume increase in 2007, with $293.4 million in rental revenue, compared with $236.9 million in 2006. Total revenue jumped even more dramatically, from $266.1 million in 2006 to $342.6 million in 2007, a 28.7-percent total volume leap. EBITDA increased 24.2 percent year over year, from $116.5 million in 2006 to $144.7 in 2007.
Same-branch revenues increased 19.2 percent year over year, a $46 million hike. Increased revenues resulted from an increase in the number of units available for rent as a result of capital expenditures that increased the average original cost of the company’s rental fleet to $639 million in 2007, compared with $474 million in 2006. Average dollar utilization, however, dropped in 2007 to 46 percent, compared with 50 percent in 2006.
Average rental rates increased 3 percent in 2007 and average time utilization of the company’s high-reach equipment dropped from 73 percent in 2006 to 70 percent in 2007.
Sales of rental equipment increased 50 percent year over year, because of the company’s growth in its rental fleet and the strong retail and secondary market demand for rental equipment. Ahern Rentals sold 37 percent more units in 2007 compared with 2006, with sales increased through retail channels growing 24 percent and sales through auction jumping 75 percent. Sales of new equipment jumped 128 percent, or $8 million because of an increase in emphasis on such sales.
“Looking to current year, we can indicate that capex for first-quarter 2008 are slightly less than 2007 and we expect that trend to follow for the year, we expect less capex this year than last year,” said Ahern. “In 2008, we have yet to open a new store, but we do have two or three stores being worked on to open in 2008. Retail and sale of new and used equipment has been strong for us in this past year and even stronger so far in 2008. As we study our numbers, we see all our markets, particularly in non-residential, to be increasingly strong. We have seen a number of projects delayed, but current level of activity is quite high.”
Based in Las Vegas, Ahern Rentals is No. 11 on the RER 100, and is expected to move into the top 10, based on rental revenue, when the 2008 RER 100 is compiled.