NationsRent last week announced $490.7 million in 2005 rental revenue, up 6 percent from 2004’s $460.9 million. In total revenue, the company posted a more significant 17.9-percent increase, from $589.7 million in 2004 to $695.3 million in 2005.
More important is the bottom line: NationsRent posted $18.4 million in net income in 2005, compared with a $596,000 loss in 2004. EBITDA for 2005 was $191.4 million, a 22.6-percent increase from 2004’s $156.1 million.
As part of the company’s strategy of becoming a full-service provider, its sales of equipment, merchandise, service, parts and supplies increased 58.9 percent year over year, from $128.8 million in 2004 to $204.6 million in 2005.
In 2005, company officials said in documents filed with the Securities and Exchange Commission, NationsRent increased the pace of sales of used equipment to take advantage of the strong market pricing for used equipment. At the same time, the company reinvested the proceeds from these sales together with the proceeds from certain long-term financings to replenish and grow its rental fleet. This strategy enabled the company to reduce its fleet age and improve its overall fleet mix.
In 2005, NationsRent also completed the implementation of a new point of sale system to better support key initiatives. NationsRent also became an authorized dealer and distributor for JLG, Lull, SkyTrak, Gradall, Multiquip, Case and Link-Belt at certain locations.
Utilization in 2005 was 50.3 percent, up from 48.6 percent in 2004. The company spent $278.4 million on rental fleet in 2005, up from $167.2 million in 2004.
The company expects to grow rental revenue about 6 to 8 percent in 2006, along with about an 18- to 20-percent growth in the sale of new equipment, merchandise, service, parts and supplies. It expects EBITDA of about $210 million in 2006.
Based in Fort Lauderdale, Fla., NationsRent is No. 6 on the RER 100.