RSC Holdings posted $408 million in total revenue in the first quarter, compared with $327 million for the first quarter of 2011, a 24.7-percent increase. Rental revenue jumped 27.2 percent from $272 million in Q111 to $346 in the recently concluded quarter, while rental volume increased 19.2 percent. First-quarter net income was $11 million, or 10 cents per diluted share, compared with a net loss of $50 million, of 49 cents per diluted share a year ago.
Adjusted EBITDA was $159 million, compared with $99 million for the year-ago period, a 60.6-percent climb. Adjusted EBITDA margin was 39 percent, compared with 30.2 percent a year ago. The increase in profitability and margins reflects continued volume growth, pricing improvement and RSC’s ability to control its operating costs. The company increased average fleet utilization to 67 percent.
Rental rates increased 0.5 percent compared with the fourth quarter of 2011 and 8.2 percent compared with the first quarter of 2011.
“RSC is off to a very strong start to the year as evidenced by the highest year-over-year quarterly rental revenue growth in our history,” said president and CEO Erik Olsson. “Our biggest strategy and industry-leading execution delivered impressive volume growth, while at the same time generating positive year-over-year pricing."
RSC shareholders will vote April 27 on its pending merger with United Rentals, which is scheduled to close at the end of this month if approved.
Based in Scottsdale, Ariz., RSC Rental is No. 2 on the RER 100.