CHARLOTTE, NC – June 29, 2006 – Sunbelt Rentals’ parent company Ashtead Group plc announced record results for the year ended April 30, 2006, with Sunbelt’s revenue increasing by 23.8% to $818.7 million. Sunbelt’s operating profit increased 62.7% to $175.5 million, up from $107.9 million in 2005. Sunbelt also invested a record $384.4 million in capital expenditures during the year, focusing principally on fleet replacement and growth.
“ Sunbelt’s significant growth can be attributed to the increased investment in our rental fleet and continuing improvement in our rental rates. Our achievements this year were made possible by an extremely dedicated team that is fully focused on serving our customers,” says Sunbelt Rentals’ President and Chief Executive Officer Cliff Miller. “In addition to superior performance in our traditionally strong markets, Sunbelt significantly expanded its presence in other under-represented markets. We will continue that focus this year.”
“In addition to the investment in new fleet, we’re also investing heavily in our staff development. Employee training and career development programs along with projects to increase sales effectiveness are among our important initiatives,” says Miller. “We want to ensure that we continue to provide our team in the field a strong foundation from which to serve our customers. We cannot thank our team enough for their efforts, but the record Profit Share paid to staff this year is an illustration of our commitment to them and our appreciation for their hard work.”
The Company’s revenue improvements were broadly-based with all regions and all major product areas performing better than the previous year. Sunbelt c ontinued to reduce the age of its rental fleet and invest in growth, including the opening of six new greenfield locations and acquisition of 16 new general equipment rental branches. Additionally, organic growth was emphasized as demonstrated by an increase in same store revenues for the year of 19.3%.
“Our team is very optimistic about continued growth and improvement in our business in the coming year,” said Chief Operating Officer Brendan Horgan. “Market conditions are very positive. Sunbelt is improving its competitive position and our ability to serve our very diverse customer base is unmatched in the industry.”
Sunbelt Rentals, a wholly-owned subsidiary of Ashtead Group plc, is the fourth largest equipment rental company in the U.S. as listed by the Rental Equipment Register. Sunbelt is based in Charlotte, N.C., and provides equipment rental solutions for the industrial, construction, and municipal markets, plus the DIY markets, from its network of 209 branches in 28 states. Its extensive equipment 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. For more information, visit www.sunbeltrentals.com.
On a global scale, Ashtead Group, whose shares are publicly traded on the London Stock Exchange, now has a market capitalization of over $1 billion. Ashtead Group has a network of over 400 locations among three equipment rental subsidiaries: A-Plant, the third largest equipment rental company in the UK with 200 locations; Sunbelt Rentals; and Ashtead Technology, an international offshore and nondestructive testing equipment rental company headquartered in Houston, TX, with 10 branches located in the U.S., Canada, the United Kingdom and Singapore.
COMPANY HISTORY
- Incorporated in 1983
- Acquired by Ashtead Group in 1990
- McLean Rentals acquired by Sunbelt Rentals in 1996
- BET USA, Inc., operated as BPS, Aggregate and Ivy Hi-Lift, acquired in June 2000
KEY EXECUTIVES
- Cliff Miller, President and Chief Executive Officer
- Brendan Horgan, Chief Operating Officer
- Suzanne Wood , Executive Vice President and CFO
- Kurt Kenkel, Executive Vice President
- Chuck Miller , Executive Vice President
MARKET OVERVIEW
- Rental solutions for the construction, industrial, and municipal markets, plus weekend DIY
- Broadest product range in the rental industry
- Specialist Markets: Pump & Power, Trench Shoring, Scaffolding Services, Pile Driving Equipment, Traffic Safety
- 209 full-service locations in 28 states, each providing 24/7 service support
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