Neff Corp. Announces Second Quarter Operating Results
MIAMI--(BUSINESS WIRE)--Aug. 2, 2001--Neff Corp. (NYSE:NFF - news; the ``Company''), announced today its revenues and results from operations for the second quarter ended June 30, 2001.
The Company reported second quarter revenues of $57.7 million, a decrease from second quarter 2000 revenues of $62.1 million primarily due to a 32.5% decrease in equipment sales. On a same store basis, rental revenues increased by 4.5% for the second quarter of 2001 when compared to the same period of 2000. Earnings before interest, income taxes, depreciation and amortization (``EBITDA'') for the quarter was $20.1 million, an increase of 2.5% over EBITDA of $19.6 million for the quarter ended June 30, 2000. The Company reported a net loss for the second quarter of 2001 of $(1.8) million or $(0.08) per diluted share, compared to a net loss of $(4.1) million or $(0.19) per diluted share for the same period last year. The reported net loss for the second quarter of 2000 included a pre-tax charge of $(4.3) million to write-down rental assets to estimated fair market value.
Consolidated debt at June 30, 2001 was approximately $334.1 million, including approximately $135.2 million of debt outstanding under the Company's revolving credit facility. During the second quarter the Company applied free cash flow to reduce its debt by $6.1 million and for the six months ended June 30, 2001 has reduced debt by $12.3 million.
The Company reported revenues of $116.9 million for the six months ended June 30, 2001, a decrease from revenues of $121.3 million for the six months ended June 30, 2000. On a same store basis, rental revenues increased by 5.2% for the six months ended June 30, 2001 when compared to the same period of 2000. EBITDA increased by 1.0% to $36.8 million, compared to EBITDA of $36.4 million for the six months ended June 30, 2000. The Company reported a net loss of $(16.5) million or $(0.78) per diluted share for the six months ended June 30, 2001, compared to a net loss of $(6.3) million or $(0.30) per diluted share for the same period last year. The reported net loss for the six months ended June 30, 2001 includes a pre-tax charge of $(9.1) million recorded in the first quarter for branch closure and other related costs. The reported net loss for the six months ended June 30, 2000 included a pre-tax charge of $(4.3) million to write-down rental assets to fair market value.
Pete Gladis, President and Chief Executive Officer, stated: ``We are pleased to report that we were able to increase EBITDA and same store rental revenues in the current quarter despite unfavorable economic conditions. We are also pleased to report that the Company's efforts over the last 12 months to rationalize our cost structure are being reflected in margin improvements. In the current quarter our gross profit margin has improved by 110 basis points, our EBITDA margin has improved by 330 basis points and our SG&A expenses have decreased by 12.9% on a year-over-year basis. Our branch rationalization process is nearing completion with 6 branches closed or consolidated in the current year. In comparison to June 2000 we have reduced headcount by over 16.0% while maintaining rental revenues and dollar utilization relatively constant and increasing same store sales.''
Mr. Gladis continued, ``We remain concerned about overall economic conditions as well as the lack of improvement in rental rates, but management will continue to focus on margins, cost reductions, cash flow generation and overall shareholder value.'' |
