15.06.2008

Essex Crane up 30%

Essex crane, of Chicago, one of North America’s largest crawler crane rental companies, has reported first quarter revenues up by almost 30 percent to $20.1 million.

Rental income increased by over 29 percent to $13.9 million, Sales of used equipment from the rental fleet was up 290 percent to $2.9 million, invoiced transportation up 7.5 percent to $1.9 million and repairs and maintenance revenues dropped by more than 30 percent to $1.3 million.

Gross profits jumped by almost 50 percent while Earnings Before Interest, Depreciation and Amortisation increased by just over 50 percent to $10.6 million.

The average rate per month per crane climbed from $15,000 to over $19,000, while physical utilisation increased from 68.1 percent to 71.8 percent.

Essex Crane, is currently a private company, but reached an agreement to be acquired by Hyde Park Acquisition Corp in March for $210 million.

Laurence S. Levy, chairman and chide executive of Hyde Park, said:
“Hyde Park is pursuing the acquisition of Essex on the basis of the long-term benefits associated with Essex’s market-leading position serving growing infrastructure-related end markets, as well as the attractive asset value and long useful lives of Essex’s crane fleet.”

“As evidenced by these strong first quarter results, Essex continues to benefit from robust demand conditions prevailing in its end markets, as investments in bridge and road construction, power, water treatment, refineries, alternative energy and similar projects remain strong.”

“In addition to the strong demand conditions, Essex’s management has maintained strict cost control which has contributed to strong profitability for the quarter. Essex also continued to optimise its crane rental fleet by selling under-utilised, older equipment with lighter lifting capacity.”

“As a complement to these sales, during the first quarter of 2008 Essex purchased approximately $9 million of new heavy lift equipment for which demand remains strong and rental rates are attractive relative to lighter lift equipment. These investments are expected to benefit operations and profitability beginning in the second half of 2008 and continuing into 2009 and beyond.”