Noble Iron Revenue Jumps 28 Percent in Second Quarter
Rental company and distributor Noble Iron posted total revenue of $6.6 million in the second quarter, an increase of 28 percent or $1.4 million compared to the second quarter of 2014. The construction and industrial equipment rental and distribution segment posted revenues of $5.3 million, an increase of $1.2 million or 29 percent year over year.
Noble Iron’s software segment, Texada Software, had revenue of $1.3 million in the second quarter, an increase of $0.2 million or 23 percent compared to the second quarter of 2014.
However, the company had a net loss of $2.4 million, an increase of $600,000 or 36 percent compared to the previous year. Adjusted EBITDA was $0.2 million compared to break-even in the second quarter of 2014.
For the first six months of the year, revenue was $12.2 million, compared to $10.4 million in 2014, a 17.9-percent jump. However, net loss was $5.1 million compared to $2.5 million a year ago.
“During the second quarter of 2015, we began realizing the results of the reorganization plan we initiated in 2014,” said Nabil Kassam, Noble Iron’s founder, chairman and CEO. “We rebuilt our management and operating team; consolidated our four Southern California operations into a single hub in Los Angeles; and made significant investments in technology development. Our Southern California operations achieved record revenues in April and June, and our consolidated revenues, earnings and adjusted EBITDA have improved each quarter over the last three quarters. We believe our positive trajectory will be further catalyzed by other initiatives at our equipment operations and our release of new software products later this year.”
Noble Iron provides equipment rental and dealership operations in California and Texas and is exclusive distributor of LiuGong Construction Machinery equipment and Allied Construction Products in southeast Texas. It also operates Texada Software products for equipment rental companies. Noble Iron is No. 98 on the RER 100.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.