“Due to the timing of certain crane and earthmoving deliveries, we expected the second quarter to potentially be our strongest sales period of the year,” Engquist commented. “While we expect continued sequential and year over year improvement in our rental business through the third quarter, we are more cautious and have less visibility on the distribution side of our business.”
FINANCIAL DISCUSSION FOR SECOND QUARTER 2011:
Total revenues increased 40.7% to $184.3 million from $131.0 million in the second quarter of 2010. Equipment rental revenues increased 33.8% to $55.8 million compared with $41.7 million in the second quarter of 2010. New equipment sales increased 100.0% to $57.9 million from $29.0 million in the second quarter of 2010. Used equipment sales increased 28.6% to $23.1 million compared to $17.9 million in the second quarter of 2010. Parts sales increased 9.5% to $24.9 million from $22.8 million in the second quarter of 2010. Service revenues increased 5.4% to $13.2 million compared to $12.6 million a year ago.
Gross profit increased 47.6% to $47.8 million from $32.4 million in the second quarter of 2010. Gross margin was 25.9% for the quarter ended June 30, 2011, compared to gross margin of 24.7% for the quarter ended June 30, 2010.
On a segment basis, second quarter of 2011 gross margin on rentals was 40.7% compared to 31.1% in the second quarter of 2010 due to higher average rental rates on new contracts in the period and improved fleet utilization. On average, rental rates increased 6.4% as compared to the second quarter of 2010. Time utilization (based on units) was 67.1% in the second quarter of 2011 and 54.9% a year ago.
Gross margin on new equipment sales was 11.7% as compared to 9.9% in the second quarter a year ago driven primarily by improved crane margins. Gross margin on used equipment sales was 21.7% compared to 22.7% a year ago which was lower due to the mix of used equipment sold. Gross margin on parts sales increased to 26.8% from 26.1%. Gross margin on service revenues decreased to 61.2% from 66.2% in the prior year due primarily to revenue mix.