CHARLOTTE, NC – September 8, 2006 – Supporting the Ashtead Group’s strong performance in the first quarter 2006, Sunbelt Rentals announced that it again 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). Last year’s acquisitions continue to perform well. 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 $64.8m in 2005).
Cliff Miller, President and Chief Executive Officer commented, “We are very pleased with our first quarter results. Our strong growth in rental revenue and operating profit for the quarter reflects the strength of our operating model and our continuous drive to distinguish Sunbelt Rentals from the rest of the industry. In addition, our acquisition of NationsRent has created a bigger and stronger company that will provide our customers with more choices than ever before.”
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.
About Sunbelt Rentals
Sunbelt Rentals, a wholly-owned subsidiary of Ashtead Group PLC, is now the third largest equipment rental company in the US, as listed by the Rental Equipment Register. Sunbelt is based in Charlotte, NC., and provides equipment solutions for the industrial, construction, and municipal markets, plus the DIY markets, from its network of over 470 branches in 35 states including the convenience of homeowner and contractor services at 100 NationsRent At Lowe's locations. Its extensive $2 billion fleet, includes a wide range of general construction and industrial equipment, and is further broadened by specialty businesses serving the Pump, Power, Trench Shoring, and Scaffold markets. The company also offers new and used equipment sales, maintenance and repair services for customer-owned equipment, 24-hour emergency service, and the Sunbelt Rentals Guarantee. For more information, visit www.sunbeltrentals.com.