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Electro Rent Corporation (Nasdaq:ELRC) today reported financial results for the second fiscal quarter ended November 30, 2012.
“Our business moved forward during the second quarter, even in the face of the ‘fiscal cliff,’ reflecting both economic reality and the increasing value of Electro Rent’s test and measurement equipment rental programs. We also saw continued advances in used equipment sales,” said Daniel Greenberg, Chairman and CEO of Electro Rent. “Although ongoing economic uncertainty continues to affect our customers and their ability and desire to purchase new equipment, this same uncertainty is driving increased demand for equipment acquisition alternatives, such as rental, which do not require large capital outlays or commitments.”
Total revenues increased 5.8% to $65.2 million for the fiscal 2013 second quarter, from $61.6 million for the fiscal 2012 second quarter. Rental and lease revenues grew to $34.6 million for the second quarter of fiscal 2013, up from $32.9 million for the second quarter of fiscal 2012, primarily related to the fiscal 2012 acquisition of Equipment Management Technology (EMT), greater customer demand and the integration of Electro Rent’s resale organization with its test and measurement sales force. Sales of equipment and other revenues increased to $30.6 million for the most recent fiscal quarter, compared with $28.7 million one year ago.
Selling, general and administrative expenses totaled $14.1 million, or 21.6% of total revenues, for the fiscal 2013 second quarter, compared with $13.1 million, or 21.3% of total revenues, for last fiscal year’s second quarter. The increase was primarily related to the enhancement of Electro Rent’s sales and sales support organizations, as well as its administrative infrastructure, to better position the company to capitalize on future growth opportunities. Total operating expenses were $54.9 million for the fiscal 2013 second quarter, versus $52.2 million last year.
Operating profit for the fiscal 2013 second quarter was $10.3 million, or 15.8% of total revenues, compared with $9.4 million, or 15.3% of total revenues, a year ago.