Ahern Reports Q1 Earnings
May 21, 2008 • Las Vegas, Nev.-based Ahern Rentals reported first quarter rental revenues for 2008 of $78.5 million, up from $63.5 million last year, a more than 23-percent increase. According to documents filed with the Securities and Exchange Commission last week, the company's total revenue were $93.5 million, up from $71.1 million same period last year, a 32-percent increase over the same period last year.
Equipment rentals and related revenues in 2008 accounted for 84 and 89 percent of total revenues in 2008 and 2007, respectively. Same branch revenues increased 17 percent, or $11 million; the remaining $4 million increase in revenues is from five new branches opened after the first quarter of 2007. In April 2008, Ahern opened its 44th branch, located in
Additionally, the increased revenues resulted from an increase in the number of units available for rent as a result of capital expenditures that increased the average original cost of our rental fleet to $747 million in 2008 from $580 million in 2007, offset slightly by a decrease in our average dollar utilization to 42 percent in 2008 from 44 percent in 2007. Although average rental rates increased 1 percent, average time utilization of high reach equipment remained at 67 percent for both 2008 and 2007.
For the three months ended March 31, 2008, and 2007, the company had total expenditures on new rental equipment of $36.7 million and $37.1 million, respectively. Ahern Rentals expects rental equipment expenditures to decrease in 2008 based on anticipated customer demand. “However, if demand for rental equipment from our customers remains strong, expenditures to purchase new rental equipment, replace used rental equipment, and purchase transportation equipment could remain constant or increase depending on availability of financing,” the company statement said.
During the three-month periods ended March 31, 2008, and 2007, the company purchased approximately $11 million and $10.8 million of equipment, respectively, from an entity controlled by the company's principal executive officer and majority shareholder. On March 31, 2008, the company paid a distribution of $7.5 million to its shareholders.
