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Neff Rental Posts Record First Quarter

Neff Corporation posted record results for revenue and earning in the first quarter, the company annouced. Rental revenues increased 7.3% and total revenues increased 8.2% compared to last year. 

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Despite challenging winter weather and the downturn in the oil and gas segment, said Neff Corporate CEO Graham Hood, "overall conditions in our construction markets remain solid and we are not seeing any impact related to oil prices outside of locations that have significant oil and gas exposure. We remain highly focused on managing our fleet and executing our strategy as we move into our seasonally strong period."

First Quarter 2015 Highlights

• Revenues increased 8.2% to $84.1 million in the quarter from $77.7 million in the first quarter of 2014.
• Adjusted EBITDA grew 12.2% to $39.0 million in the first quarter of 2015 from $34.8 million in the prior-year quarter. Adjusted EBITDA as a percentage of revenues was 46.4% compared to 44.7% in the first quarter of 2014.
• Rental revenues increased 7.3%, or $5.0 million, to $74.1 million in the first quarter of 2015.
• The average original equipment cost ("OEC") of our rental fleet increased by 14.6% to $722.2 million in first quarter of 2015.
• Rental rate growth was 3.8% in the quarter compared to 7.2% in the first quarter of 2014.
• Time utilization was 63.7% in the first quarter of 2015 compared to 68.3% in the prior-year period.

The Company full-year outlook is for a year-over-year rental rate increase of 4.5% and time utilization of 66%. Click here for the company's press release.