Neff Rentals increased its rental revenues 3.2 percent in the third quarter compared to the same period last year, posting $90.5 million. Total revenues were $99.4 million compared to $97.7 million a year ago, a 1.7-percent climb.
Adjusted EBITDA increased 1.3 percent to $50.8 million in the third quarter, compared to $50.2 million a year ago. Rental rates were flat year over year, dropping 0.1 percent, while time utilization was 69.2 percent in the third quarter, compared to 70.9 percent in the year-ago frame.
“We achieved record rental revenues in the third quarter of 2015, which increased year over year despite the ongoing headwinds from oil-and-gas activities,” said Graham Hood, CEO of Neff Corp. “Outside of our branches directly affected by oil and gas, our rental revenues were up 10.5 percent and our EBITDA increased by 11.1 percent, reflecting the ongoing strength in the construction markets we serve.”
Also Neff’s board of directors has authorized a share repurchase program pursuant to which the company may purchase up to $25 million of shares of its Class A common stock.
“The board of directors believes that the company’s common stock currently is undervalued in the marketplace and represents a sound investment at its recent trading prices,” said Hood. “The board of directors and management are confident in the future of Neff and believe this repurchase program to be in the best interests of the company and its stockholders.”
The size of Neff’s rental fleet was $780.7 million of original equipment cost as of Sept. 30, compared to $723.6 million at the end of Q314.
For the first nine months of the year, revenues increased 3.7 percent to $277.7 million, compared to $267.8 million a year ago. Rental revenues jumped 3.8 percent of $9.1 million to $249.5 million for the first nine months of the year. Rental rate growth was 1.8 percent in the current year compared to the first nine months of 2014.
Neff Rentals, based in Miami, is No. 10 on the RER 100.