July 10, 2007 • For the 12-month period ending April 30, 2007, Sunbelt Rentals, Charlotte, N.C., reported strong financial results with pro forma revenues increasing by 8 percent to $1.5 billion. Rental and rental-related revenues grew 9 percent. Cliff Miller, Sunbelt's president and chief executive officer, attributed the success to higher rental revenue from a focus on developing business around a broad fleet mix, development of a correspondingly diverse customer base and improved dollar utilization through better physical utilization.
Parent company Ashtead Group plc also said that Sunbelt's pro forma operating profit increased 43 percent to $272.3 million, which is up from $190.4 million in 2006, reflecting on the progress made to date on the NationsRent integration.
“The year saw substantial change and development across the group,” said Geoff Drabble, Ashtead's chief executive. “The NationsRent acquisition was a significant step forward in enhancing the group's presence in the growing U.S. rental market.”
Since the acquisition of NationsRent, which took place on Aug. 31, 2006, a combined regional and district management structure was introduced, which merged overlapping profit centers and combining computer systems. By the end of January, the former NationsRent head office had been closed, and Sunbelt's corporate headquarters were relocated to a larger premises. Additionally, Sunbelt undertook a program to reshape the acquired NationsRent fleet to contain a similar proportion of higher returning assets to Sunbelt. Drabble said that the major elements of the integration have concluded, and the combined business can now focus on gaining further market share and continuing to improve dollar utilization.
“As we enter the height of the rental season, we are one team focused on gaining market share and improving utilization,” Miller said. “The Sunbelt team has accomplished a great deal in a very short period of time, and we are well positioned to take advantage of the current favorable market conditions as we move into the heart of the current fiscal year.”
