RSC Holdings Inc., one of the largest equipment rental providers in North America, announced financial results for the quarter ended September 30, 2011. Total revenue was $407 million and rental revenue was $361 million, compared with $334 million and $292 million, respectively, for the same period last year. The company's third quarter net income was $16 million, or $0.15 per diluted share, compared with a net loss of $6 million, or $0.06 per diluted share, for the third quarter 2010.
Adjusted EBITDA was $163 million for the quarter, compared with $119 million for the same period last year. Adjusted EBITDA margin was 40.1% for the third quarter, compared with 35.6% in 2010. The increase in profitability and margins primarily reflects continued volume growth, pricing growth and the company's ability to leverage and control its operating costs.
Third Quarter 2011 Highlights
- Generated a 38% increase in year-over-year Adjusted EBITDA.
- Grew rental revenue 24% over the third quarter 2010.
- Increased rental volume 19.0% year-over-year, the fifth consecutive quarter of double-digit volume growth.
- Improved rental rates 1.0% sequentially from the second quarter and 4.6% over the third quarter of last year.
- Increased average fleet utilization to 73%, up 380bps from the third quarter 2010.
- Invested $176 million in gross rental capital expenditures in response to growing demand.
- Sold $67 million of existing fleet at original cost with record margins of 38%, up from 16% in the year ago quarter.
- Strong availability of $648 million under the ABL revolver as of September 30, 2011.
To view the entire report, visit RSC Equipment Rental.