Neff Corporation: "Record Rental Revenues" in 2015
Reporting on Neff Corporation's financial results for 2015, company CEO Graham Hood said the company generated "record rental revenues . . . despite the challenges from the decline in upstream oil and gas demand." The company plans on being "cautious with our CAPEX spending and to focus on rental demand in construction end-markets" this year, he added.
The company's branches that weren't directly affected by the oil and gas market showed a 12.7 percent growth in revenue in Q4 of last year, he noted.
Full Year 2015 Highlights
- Revenues increased 3.2% to
$383.9 million from$372.0 million in 2014. - Rental revenues increased 3.7%, or
$11.9 million , to$336.0 million in 2015 from$324.1 million in the prior year. - Rental rate growth was 1.0% in 2015.
- Time utilization was 66.8% compared to 69.7% in 2014.
- Equipment sales increased to
$34.8 million from$34.5 million in 2014. - Parts and Service revenues decreased to
$13.1 million from$13.4 million in 2014.
Fourth Quarter 2015 Highlights
- Revenues increased 1.9% to
$106.1 million from$104.1 million in the fourth quarter of 2014. - Rental revenues increased 3.3% year over year to
$86.5 million in the fourth quarter of 2015. - Rental rates decreased 1.3% year over year in the fourth quarter of 2015.
- Time utilization was 66.8% in the fourth quarter of 2015 versus 67.6% in the prior year period.
2016 Financial Outlook
- Total revenue is forecast to be in the range of
$390 million to $410 million . - Adjusted EBITDA is forecast to be in a range of
$190 million to $200 million . - Year-over-year rental rate increase is expected to be approximately 0-2%.
- Time utilization is forecast to be approximately 68%.
- Net capital expenditures are expected to be in the range of
$100 million to $110 million .
Hood added that the company is forecasting the industry's multiyear expansion to continue, with more customers making the decision to rent rather than own, and to see a decreasing impact from the oil and gas market dip.
You can find the company's full press release here.
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