Noble Iron posted a 44-percent rental revenue increase from its equipment rental and distribution segment in the first quarter of 2013. Adjusted EBITDA in that segment increased 78-percent compared to the first quarter of 2012. Total revenue in the quarter was $4.5 million, compared to $4 million in the prior-year period, a 12.5-percent jump.
Total net loss for the period was $1.3 million, compared to a net loss of $0.4 million in the first quarter of 2012.
Noble Iron also closed a $15 million revolving credit facility for its Texas operations. Previous financing arrangements for Noble Iron’s Texas operations included a number of debt facilities charging interest rates ranging from 5.8 percent to 7 percent. The new facility includes a cash sweep against outstanding debt, and no scheduled principal payments due during the four-year term of the loan. The facility allows the company to draw up to $15 million, based on a borrowing base determined by the value of the equipment fleet, accounts receivable and inventory. $5.4 million was funded at closing, and $9.6 million remains available to draw subject to borrowing base availability.
“We are excited with the progress of the Noble Iron model and its development,” said CEO Willie Swisher. “Our year-over-year revenue growth of 44 percent within the company’s equipment rental and distribution segment demonstrates our team’s commitment to providing our customers quality equipment and hassle-free service at the lowest price.”
“The new debt financing will provide Noble Iron with significant growth capacity at our Texas CELL,” said Nabib Kassam, executive chairman of Noble Iron. “We are pleased to continue working with our lending partner, Regions Bank, and look forward to pursuing additional expansion opportunities.”
Noble Iron operates in three complementary sectors: equipment rental, equipment dealership and enterprise management software. Based in Houston, the company narrowly missed making the RER 100, ranked No. 101.
