14.03.2011

Essex jumps in fourth quarter

Essex Crane saw revenues leap 70 percent in the fourth quarter of 2010, while losses grew equally dramatically as Coast Crane was integrated for the final five weeks.

Total revenues for the quarter were $15.4 million - up 70 percent from the $9.09 million reported in 2009. Coast Crane, which was integrated on November 24th, contributed $5.4 million of the additional revenue - with the rest coming from improved crawler crane utilisation.

The pre-tax loss in the quarter jumped from $1.45 million in 2009 to $5.28 million in 2010, thanks to a range of items, including a loss at Coast crane, acquisition costs, higher depreciation and higher interest costs.

For the year as a whole Essex revenues fell just over 20 percent to $41.5 million, while a pre-tax profit of $1.17 million in 2009 was turned into a $14.9 million loss this year.

Average rental rates per crawler crane continued to languish well behind those of a year ago at $15,493 – compared to $19,181 – physical utilisation though jumped 10 percentage points to 44.7 percent in the quarter part, of an on-going upward trend.

As a result of increased utilisation at Coast Crane the company has also approved a $20 million investment in the Coast rental fleet.

Chief executive Ron Schad, said: “The fourth quarter was an exciting and busy quarter for Essex Rental, we completed the acquisition of Coast Crane’s assets in late November and we have been pleased with the acquisition to date. During the fourth quarter of 2010, Essex Crane experienced both increasing utilisation rates and the stabilisation of average rental rates.”

“During the fourth quarter, the cyclical upturn continued although we experienced moderate seasonal softness which is typical during the winter months. We continue to believe that we are well positioned to substantially increase utilization as we move through 2011.”

“We are excited about the opportunities that 2011 will provide, based on increasing utilisation and strong quoting activity, particularly to construction jobs that have already been awarded to contractors. In 2011, we will focus our efforts on implementing systems at Coast Crane that provide visibility into quote and order activity, similar to what we have at Essex Crane. In addition, we will expand the products that Coast Crane currently distributes and services and we will announce the representation of other crane manufacturers within the coming weeks.”

“We are confident that the construction rental equipment, sales and service markets are improving and are optimistic about what the future holds for Essex Rental Corp. and its shareholders.”