Electro Rent Corporation (NASDAQ:ELRC)
today reported financial results for the first quarter ended August 31, 2012.
“Our business held steady during the quarter, as Electro Rent’s proven ability to provide increasing value to our rental customers weighed in against declines in our new sales equipment business,” said Daniel Greenberg, Chairman and CEO of Electro Rent. “Business in all our rental markets continued to grow and strengthen during the first quarter. In addition, our used equipment business moved upwards. On the other hand, capital constraints and general economic uncertainty negatively affected our new equipment sales business. We believe that the short-term trends we experienced in the quarter will likely prove to be long-term trends as customer preferences and needs continue to change.”
Total revenues were $58.5 million for the first quarter of fiscal 2013 compared with $58.7 million for the first quarter of fiscal 2012. Rental and lease revenues advanced to $33.7 million for the first quarter of fiscal 2013, up from $31.3 million for the first quarter of fiscal 2012, primarily related to acquisition of Equipment Management Technology (EMT) in fiscal 2012, improved customer demand and the integration of Electro Rent’s resale organization with its test and measurement sales force. Sales of equipment and other revenues were $24.8 million for the most recent fiscal quarter compared with $27.3 million a year ago, as changes in national budgetary policy and continuing economic uncertainty caused delays in customers’ procurement decisions.
Selling, general and administrative expenses totaled $16.6 million, or 28.4% of total revenues, for the fiscal 2013 first quarter compared with $15.9 million, or 27.1% of total revenues, for last year’s first quarter. The additional spending reflected enhancements to Electro Rent’s sales and sales support organizations and its administrative infrastructure, in order to allow Electro Rent to better capitalize on future growth opportunities. Total operating expenses amounted to $50.3 million for the fiscal 2013 first quarter versus $50.0 million last year.