RSC Equipment Rental had a strong second quarter with total revenue of $384 million, an 8-percent increase over the second quarter of 2004. Most of that growth came from rate and volume improvements in equipment rentals, with same-store rental revenue jumping 17 percent year over year, with sales of used equipment rising 18 percent. Rental fleet utilization in the quarter improved to 69 percent, up from 66 percent in last year’s second quarter.
Rental revenue was about $295.6 million, 77 percent of total revenue and a 14 percent year-over-year increase. Operating profit rose to $85 million in the second quarter, a 57 percent year-over-year increase. Although volume increased, operating costs for the quarter remained flat compared to the same quarter of 2004, resulting in a jump in earnings before interest, taxes, depreciation and amortization from 31 percent in Q204 to 40 percent this year.
Return on operating capital employed increased year over year from 13 percent to 23 percent, outperforming the cost of capital for the company.
“RSC’s first strategic objective is to lead the industry in customer satisfaction,” said Tom Zorn, president and CEO of RSC Equipment Rental. “RSC is also strongly focused on driving continuous improvement in operating efficiency, return on capital employed and revenue growth. We emphasize generative positive economic value added first, then we focus on revenue growth, a strategy that sets us apart from many of our competitors.”
RSC decreased its number of branches from 481 to 466.
Based in Scottsdale, Ariz., RSC Equipment Rental is No. 2 on the RER 100. The company is owned by Stockholm, Sweden-based Atlas Copco.