16.08.2009

Ahern drops 26%

Las Vegas based aerial lift and telehandler rental company Ahern has reported first half revenues of $142 million, down almost 26 percent on the same period last year.

The fall comes in spite of the company having added 13 locations in the 12 months since the end of the second quarter 2008. The fall in revenues caused a first half loss of $31 million, compared to a profit last year of $4.8 million.

Second quarter revenues declined 27 percent to $71.5 million, while the company posted a loss of $18 million, compared to a profit of $2.4 million in 2008.

Capital expenditure for the period was just $23 million with a plan to spend a total of $50 million for the full year, compared to $151 million for 2008. The money spent this year will be targeted at maintenance, fill-in equipment to meet specific customer needs, and to support new branch openings.

In terms of utilisation the company uses a form of average dollar utilisation, this showed a decrease to 30 percent from 43 percent last year. The company attributes this to a 15 percent decrease in average rental rates and a decrease in average time utilisation for high reach equipment from 70 percent to 55 percent.

In spite of the red ink and the significant fall in revenues, Ahern says that it is continuing to press ahead with its expansion plans, opening more new locations, even if this should require the restructuring of its debt load to comply with loan covenants.