September 8, 2006 • Sunbelt Rentals, Charlotte, N.C., announced that it has delivered solid financial results, with increased revenue and operating profit. These results reflect significant growth in the company's key non-residential construction market, increasing market share, and the continuing shift from ownership to rental in the US.
In the quarter ending July 31, 2006, revenue grew 25.3% to $234 million reflecting growth of approximately 7% in rental rates and a 17% increase in the average fleet size. Utilization continues at high levels with a slight increase during the quarter from approximately 70% to 71%. Same store growth was strong, with an increase in revenues for the period of 21.3% indicating continued market share gains.
Sunbelt's operating profit was up 48.6% in the first quarter from $38.4 million to $57.1 million, representing a margin of 24.4% (versus 20.6% in 2005). Sunbelt also continued to replenish its fleet with new equipment to take advantage of the strong market conditions in the US with $123.7 million invested in its rental fleet in the quarter (versus $64.8 million in 2005).
The NationsRent Acquisition
The NationsRent acquisition was completed on August 31, 2006. Following the announcement of the acquisition in mid-July 2006, Sunbelt developed detailed plans for the integration of NationsRent. Prior to the closing, NationsRent's managers and sales staff were briefed on Sunbelt's operating methods, sales techniques, and incentives. A new combined regional and district structure will be implemented during September 2006. Execution of the detailed integration plan for the corporate office and business systems is well under way and on track for completion.
