Strong Increases for Neff Rental in 2005

Neff Rental last week announced a 9.4-percent increase in revenues to $76.5 million for the fourth quarter of 2005, compared to $69.9 million for the same period in 2004. Income from operations for the fourth quarter increased 104.3 percent to $17.6 million, compared with $8.6 million for 2004’s fourth quarter, while net income jumped from $5.0 million to $5.6 million. Net income for the period reflects the impact of higher interest expense because of increased borrowings to fund Neff’s re-capitalization, as well as higher interest rates.

Rental revenue increased 24.4 percent for the period to $63.9 million, while same-store rental revenues jumped 25.2 percent. Rental rates soared 9.8 percent in the fourth quarter, year over year, while dollar utilization hiked 6.3 percentage points to 53.7 percent. Adjusted EBITDA jumped 47.2 percent.

For the year ended Dec. 31, 2005, Neff reported a 12.9 percent revenue increase to $279.6 million, up from $247.7 million for 2004. Income from operations for the year increased 9.8 percent to $31.4 million, up from $24.2 million for 2004. Rental revenue increased 19.1 percent to $229.8 million, same-store rental revenues increased 20.4 percent year over year, while rental rates jumped about 11.1 percent. Dollar utilization increased by 6.4 percentage points to 51.2 percent. Adjusted EBITDA increased 45.5 percent to $106.1 million.

Based in Miami, Neff Rental is No. 9 on the RER 100.

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