Branch, fleet growth raise Ahern Rentals revenues

Same-branch rental revenues rose 16% to drive Ahern Rentals second quarter 2008 rental revenues 20% higher to $83.9 million from $70.0 million last year. Three new stores since the second quarter of 2007 contributed $2.9 million, 4.1%, of the quarter's revenues.

The US company said its average rental rate declined 5% during the period, compared to last year's, while its fleet grew from $610 million to $786 million (in original equipment cost). Those changes contributed to a decline in average dollar utilization from 46% in 2007 to 43% in 2008.

However, high reach equipment utilisation rose to 70% in this year's second quarter from 69% in the same quarter in 2007. High reach equipment rental accounted for 68% of total rental revenues in the most recent period.

For the half year, rental revenues rose $38.3 million to $162.4 million, 22% more than the $133.6 million of the first half of 2007. Average rates declined 2%, while utilisation of high reach equipment rose to 69% from 68%.

Total company revenues for the second quarter were $98.1 million, 19.3% more than the $82.2 million in last year's. Gross profit was $30.2 million, 7.8% higher than the $28 million last year.

Company revenues for the first half rose $38.3 million, or 24.9%, to $191.6 million from $153.3 million in that period in 2007. Half year profits this year were $58.9 million, a rise of 13.5% from $51.9 million in 2007.

Ahern Rentals, headquartered in Las Vegas, Nevada and number 35 in the IRN100 of world's largest rental companies, operates 46 branches across the American Southwest.