NationsRent enjoyed a 22 percent year over year revenue increase for the third quarter 2004, along with an 11 percent boost in equipment rental revenue. Sales of equipment, merchandise, service, parts and supplies, areas of the business that were downplayed in the pre-bankruptcy era, catapulted up 105.8 percent, a figure that lends credence to the plans of the post-bankruptcy management team to change NationsRent from a strictly rental operation to a full-service company that offers a complete package of customer service, with stronger product support, merchandise, parts and sales.
Third quarter net income more than tripled, from $5.8 million in 2003 to $18 million in 2004. Earnings before interest, taxation, depreciation and amortization leaped 46.7 percent from $39.4 million in 3Q03 to $57.8 million in the third quarter in 2004.
Equipment rental revenue for the nine-month period ended Sept. 30, 2004, is $342 million, versus $311.2 million in 2003, roughly evenly divided between five months under the “predecessor company” and four months under the post-bankruptcy management. Total revenue for the nine-month period grew significantly, from $353.4 million in 2003, pre- and post-bankruptcy, to $430 million for the first nine months this year. Sales of equipment, merchandise, service, parts and supplies more than doubled from a combined $41.5 million to this years $87.9 million.
Company officials attributed the growth to an improved industry environment as well as company initiatives. Higher volume and better pricing drove increases in new and used equipment sales, the company said, while higher sales volume resulted from re-emphasizing a full-service business model since emerging from bankruptcy. “We believe rental revenue grew primarily as a result of better pricing despite the decrease in the average size of our rental fleet,” stated the company’s 10-Q filed with the Securities and Exchange Commission.
The filing added the revenues were positively impacted by increased penetration in other segments of the construction market through the $800,000 increase of revenue at NationsRent at Lowe’s Stores opened in 2003.
Utilization for the nine months grew year-over-year from 43.5 percent to 48.2 percent.
Fort Lauderdale, Fla.-based NationsRent is No. 6 on the RER 100.