Essex Rental Corp. (Nasdaq: ESSX) ("Essex")
today announced its unaudited consolidated results for the second quarter ended June 30, 2011. The results are those of Essex Rental Corp. and its wholly owned subsidiaries, including Essex Crane Rental Corp. ("Essex Crane"), Essex Finance Corp. (“Essex Finance”), Coast Crane Company (formerly known as CC Bidding Corp.) and Coast Crane Ltd. (“Coast Crane Ltd.”). References in this release to “Coast Crane” refer to the combined results of Coast Crane Company and its wholly owned subsidiary, Coast Crane Ltd., which were acquired on November 24, 2010. Included below is a comparison of Essex's results of operations for the quarter ended June 30, 2011 to the corresponding results for the quarter ended June 30, 2010. Many of the explanations provided below relate to the impact of Coast Crane.
Management Comments on Second Quarter 2011
Ron Schad, President & CEO of Essex, stated, “Essex continues to experience steady growth and stability in its three business segments: equipment rentals, equipment distribution, and parts and service. With the exception of our crawler crane fleet, we experienced increases in utilization rates during the second quarter ended June 30, 2011 for all of the categories of equipment that we rent. Crawler cranes experienced a slight decline in utilization due to the conclusion of certain levee projects. Excluding these levee-related crawler cranes, we have continued to see a steady increase in utilization on a comparable quarter and year to date basis for this asset category. Specifically, since June 30, 2010 and December 31, 2010, the number of crawler cranes on rent excluding those on levee related projects has increased by 5.3% and 7.5%, respectively.”
He continued, “Overall, we are pleased with the business trends that we are seeing at Coast Crane. The Coast Crane acquisition has enabled us to diversify our earnings and is presenting us with a number of meaningful growth opportunities. The steady increase in rental equipment utilization rates, combined with accelerated revenues in our equipment distribution segment and the predictability of our parts and service segment, provides Essex with a balanced business portfolio that is well positioned for growth as our end markets continue to recover.”