25.04.2008

RSC revenues up 4%

RSC one of the North America’s largest rental companies has announced first quarter revenues of $422 million, an increase of 3.9 percent on the first quarter 2007.

Rental revenues climbed by seven percent to $372.3 million, same store rental revenue growth was 4.6 percent, plus the company opened five new locations.
Physical utilisation dropped to 68.6 percent from 70.3 percent last year while rental rates fell by just under half a percent.

Sales of used equipment were down 17 percent to $31.4 million as the company deliberately slowed its fleet renewal in order to reduce capital expenditures, this resulted in the average age of the fleet shifting from 25 months to 28 months.

Pre Tax profits increased by 10.6 percent to $36.6 million

Erik Olsson, president and chief executive officer said: "We are pleased with our solid rental revenue growth in what is the toughest quarter of the year. The non-residential market continued to grow in the first quarter and we continue to increase our share of this market. We are particularly strong in the industrial segment, which is the fastest growing part of our business and now constitutes more than 35 percent of our revenues. Our strong performance is a direct result of our commitment to providing customers reliable access to one of the youngest and most diverse fleets in the industry, superior customer service and our extensive national footprint."

"As growth in the non-residential market slows, we are adhering to our strategy of reducing capital expenditures in order to maximize cash flow and profit margins. We are executing effectively and our flexible business model enables us to quickly respond to changing market conditions to take advantage of opportunities or to pare back when necessary to achieve optimal profitability and efficiency."