Electro Rent Corporation (NASDAQ:ELRC) today reported financial results for the fourth quarter and full year ended May 31, 2012.
“During fiscal 2012 we strengthened many areas of our business by making additional investments in people and product, two key drivers of our long-term success,” said Daniel Greenberg, Chairman and CEO of Electro Rent. “We completed a strategic acquisition, added new sales, marketing and technical talent, reorganized our sales force and purchased more than $113.0 million of equipment during the year. These steps will further enhance our ability to provide customers with highly flexible alternatives for their equipment needs, a key competitive advantage as they, and we, adjust to shifting business requirements in an uncertain environment.”
Total revenues grew to $68.2 million for the fourth quarter of fiscal 2012 from $65.2 million for the same quarter last year. Sales of equipment and other revenues were $34.4 million for the most recent fiscal quarter, compared with $34.3 million for the fiscal 2011 fourth quarter. Rental and lease revenues rose to $33.8 million for the fourth quarter of fiscal 2012, from $30.9 million for the fourth quarter of fiscal 2011. The increase was primarily related to increased rental activity and rates in North America and Europe, as the integration of Electro Rent’s new resale organization with its existing test and measurement sales force provided additional rental opportunities to an expanding customer base. This increase was partially offset by a decrease in leasing demand in Electro Rent’s profitable data products business, which remains one of the largest personal computer and server rental organizations in the country.
Selling, general and administrative expenses totaled $16.4 million, or 24.1% of total revenues, for the fiscal 2012 fourth quarter, compared with $15.9 million, or 24.4% of total revenues, for last year’s fourth quarter. The increase in SG&A expenses reflected enhancements to Electro Rent’s sales organization in support of its Agilent resale channel, higher rental demand and future growth opportunities. Total operating expenses amounted to $58.0 million for the fiscal 2012 fourth quarter, compared with $54.7 million last year.