Neff Corporation reported its financial results for the fourth quarter and full year ended December 31, 2015, showing rental revenues increasing 3.7% in 2015 over the previous year.
Graham Hood, Chief Executive Officer of Neff Corporation, commented, “We generated good results in 2015 with record rental revenues and adjusted EBITDA, despite the challenges from the decline in upstream oil and gas demand. During 2015, we experienced solid growth in our core construction driven end-markets and anticipate further growth in these markets in 2016. Outside of our branches directly affected by oil and gas, our rental revenues were up by 12.7% and our EBITDA was up by 11.4%, for the fourth quarter of 2015 compared to prior year. Our approach for 2016 is to be cautious with our CAPEX spending and to focus on rental demand in our construction end-markets."
Full Year 2015 Highlights
- Revenues increased 3.2% to $383.9 million from $372.0 million in 2014.
- Rental revenues increased 3.7%, or $11.9 million, to $336.0 million in 2015 from $324.1 million in the prior year.
- Rental rate growth was 1.0% in 2015.
- Time utilization was 66.8% compared to 69.7% in 2014.
- The average original equipment cost ("OEC") of our rental fleet increased by 10.6% to $761.9 million in 2015.
- Adjusted EBITDA increased $0.1 million to $186.2 million as compared to $186.1 million in 2014.
- Adjusted EBITDA margin was 48.5% compared with 50.0% in 2014.
Fourth Quarter 2015 Highlights
- Revenues increased 1.9% to $106.1 million from $104.1 million in the fourth quarter of 2014.
- Rental revenues increased 3.3% year over year to $86.5 million in the fourth quarter of 2015.
- Rental rates decreased 1.3% year over year in the fourth quarter of 2015.
- Time utilization was 66.8% in the fourth quarter of 2015 versus 67.6% in the prior year period.
- The OEC of our rental fleet increased by 8.9% to $782.6 million in the fourth quarter of 2015.
- Adjusted EBITDA was $49.4 million down from the record $52.8 million in the prior year period.
- Adjusted EBITDA margin was 46.5% compared with 50.7% in the fourth quarter of 2014.