Scottsdale, AZ - RSC Holdings Inc., one of the largest equipment rental providers in North America, today announced results for the fourth quarter and year ended December 31, 2008.

Erik Olsson, president and chief executive officer, stated: "When the U.S. economy and our end markets deteriorated late in the fourth quarter, RSC responded aggressively by reducing headcount, store locations, fleet size and capital expenditures. As a result, we generated a strong $78 million of free cash flow in the fourth quarter. Overall, our results re-affirmed our business model of maximizing free cash flow in times of difficult markets."

Fourth Quarter 2008 Results
For the fourth quarter, rental revenues decreased 6.9% to $371 million from $399 million in last year's fourth quarter and accounted for 87% of total revenues. Total revenues were $427 million, down 6.7% from the $458 million reported for the comparable year-ago period.

Rental volume, including the impact of currency, declined 4.8% from the prior year's fourth quarter level. The company experienced a drop in equipment rental activity during the later part of the fourth quarter that was in excess of the normal seasonal drop off due to the prevailing business environment across the U.S. economy. Rental rates were down 1.7% on a sequential basis from the third quarter and down 2.1% on a year-over-year basis. Same-store rental revenues were down 6.1%. The company's industrial/non-construction revenues were down only 1% versus the fourth quarter of 2007 and surpassed 50% of total rental revenues.

Fleet utilization decreased to 67.8% from 72.3% in the third quarter of 2008 and from 72.0% in the year-ago quarter. Sales of used equipment were $39 million, sequentially $10 million higher than in the third quarter, in response to lower rental demand. Due to its relatively young and well-maintained fleet, the company was able to reduce the purchase of equipment. As a result, net capital expenditures were a cash inflow of $10 million compared to a net capital expenditure, or cash outflow, of $29 million a year ago.