Ahern revenues up as prices fall

Third quarter revenues at Ahern Rentals increased 13% to $89.0 million despite a 5% fall in rental prices compared to the same period in 2007.

The Las Vegas-based company said same branch revenues rose 12%, or $9.1 million during the period, and that three branches opened since the third quarter 2007 generated the remaining $1.5 million increase. Revenues rose also because of fleet growth from $650 million in 2007 to $815 million in 2008.

Average dollar utilisation fell to 44% in 2008 from 48% in 2007, while average time utilisation for high reach equipment - which generated approximately 67% of rental revenues - was 70%, down from 72% in 2007.

Revenues in the first nine months of 2008 increased $39.5 million, 19% over the $212.0 million in 2007, to $251.4 million. Same branch revenues increased 18%, or $37.6 million. Other revenue growth was from the three new branches and growth in fleet size to $783 million from $613 million in 2007.

Average rental rates decreased 3% over the nine months, and average dollar utilisation fell to 43% from 46%. Average time utilisation of high reach equipment decreased to 69% during the first nine months in 2008 from 70% in the same period in 2007.