Rental Revenue Jumps 5.8 Percent in Third Quarter for Neff Rental
Rental revenues were $95.8 million for Neff Corp. in the third quarter compared to $90.5 million in the third quarter a year ago, a 5.8-percent jump. The company posted a 6.1-percent year-over-year total revenue increase in the third quarter to $105.5 million, compared to $99.4 million a year ago. Equipment sales increased to $6.3 million compared to $5.6 million in the third quarter of 2015, while parts and service revenues remained relatively consistent at $3.4 million.
Rental revenues for the first nine months of 2016 were $268.4 million compared to $249.5 million a year ago, a 7.6-percent hike. Total revenues for the nine-month period were $294.7 million compared to $277.7 million in 2015, a 6.1-percent climb.
Time utilization for the nine months was 67.4 percent, compared to 66.7 percent a year ago. In the third quarter, time utilization dropped slightly from 69.2 percent in Q315 to 69 percent this year.
“The third quarter of 2016 was another solid quarter for Neff’s rental business as we generated record third quarter results for rental revenues, which increased by 5.8 percent year over year,” said Graham Hood, CEO of Neff Corp. “This performance reflects our ability to execute our strategy and take advantage of the ongoing strength in the construction markets we serve. We expect this strength to continue for the remainder of 2016 and into 2017.”
Adjusted EBITDA increased 2.1 percent to $51.9 million in the third quarter of 2016 from $50.8 million a year ago. Adjusted EBITDA margin was 49.2 percent compared with 51.1 percent in the year-ago period. Adjusted EBITDA for the nine-month period was $143.9 million, compared to $136.8 million in the first nine months of 2015, a 5.2-percent increase.
The size of Neff’s rental fleet was $830.4 million of original equipment cost as of Sept. 30, 2016, compared to $780.7 million on Sept. 30, 2015.
Miami-based Neff Rental is No. 12 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.